UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo Fund 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, 2007
Date of reporting period: April 30, 2007
ITEM 1. REPORT TO SHAREHOLDERS
===============================
----------------
[LOGO] WELLS ADVANTAGE
FARGO FUNDS
----------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
Semi-Annual Report
APRIL 30, 2007
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
- --------------------------------------------------------------------------------
Table of Contents
Letter to Shareholders .................................................... 1
- --------------------------------------------------------------------------------
Performance Highlights
- --------------------------------------------------------------------------------
Specialized Financial Services Fund .................................... 2
Specialized Health Sciences Fund ....................................... 4
Specialized Technology Fund ............................................ 6
Fund Expenses ............................................................. 8
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
Specialized Financial Services Fund .................................... 10
Specialized Health Sciences Fund ....................................... 15
Specialized Technology Fund ............................................ 20
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 25
Statements of Operations ............................................... 26
Statements of Changes in Net Assets .................................... 28
Financial Highlights ................................................... 32
Notes to Financial Highlights .......................................... 36
Notes to Financial Statements ............................................. 37
- --------------------------------------------------------------------------------
Other Information ......................................................... 43
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 48
- --------------------------------------------------------------------------------
-----------------------------------------------------
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
-----------------------------------------------------
THIS PAGE IS INTENTIONALLY LEFT BLANK --
LETTER TO SHAREHOLDERS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
DEAR VALUED SHAREHOLDER,
In this semi-annual report for the WELLS FARGO ADVANTAGE SPECIALTY FUNDS,
which covers the six-month period that ended April 30, 2007, you may notice a
few changes if you were a shareholder last year at this time. We have
abbreviated the content in the semi-annual reports to include fund and benchmark
performance, industry distribution, a list of the ten largest holdings in each
Fund, along with the usual information in the financial section.
We will continue to provide you with a general review of the economy and
stock market in our letter to you. In the next annual report, which will cover
the 12-month period ending October 31, 2007, we will also include the portfolio
manager's commentary and a chart showing the growth of a $10,000 investment.
REVIEW OF THE U.S. ECONOMY AND EQUITY MARKETS
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of slowing during the six-month
period. Real Gross Domestic Product (GDP) grew at a rate of 2.5% for the fourth
quarter of 2006 and the early estimate for the first quarter of 2007 was 1.3%.
During the last 15 years, the GDP grew at an average annual rate of 3.2%.
A significant decline in housing activity continued to tug at the U.S.
economy. 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 that had
previously seen rapid price appreciation. Sales of existing single-family homes
and new single-family homes began to stabilize in March and April of 2007.
Although homebuilders were still reporting a surplus of unsold units at the end
of the period, cancellations had stopped increasing. Areas of the country that
missed the rapid appreciation in housing prices began reporting increased demand
for homes.
Household spending was sustained by healthy labor markets, solid growth in
household incomes, and gains in net worth stemming from the strength in stock
prices. However, on February 27, 2007, the global equity market experienced a
significant correction triggered by an approximately 9% drop in China's stock
market. The Dow Jones Industrial Average (DJIA) lost 3.3% of its value on the
same day. The U.S. equity market continued to struggle in early March. Then on
March 21, 2007, the Fed announced its intention to keep the Federal funds rate
at 5.25%. In addition, the Fed left out its previous statement that further
interest-rate increases might be needed. The equity market rallied on the Fed's
news, and in April the DJIA reported its best monthly performance in over four
years, ending at 13,062 on April 30, 2007, significantly higher than the 12,216
reported after the market adjustment on February 27, 2007.
Corporations continued to find ways to spend excess cash, with much of
this spending concentrated on acquisitions, mergers, and stock buybacks. A
buyback is a method used by publicly held companies to repurchase outstanding
shares from shareholders. Buybacks allow a company to invest in itself and to
reduce the number of shares outstanding in the market. This can benefit
shareholders by increasing the ownership stake of each share.
These factors and strong global growth helped to drive the U.S. equity
market during the period. U.S. companies that generate revenue from exports
continued to benefit from overseas sales as a result of a weaker U.S. dollar;
this also helped to keep domestic products competitive in the global
marketplace.
PLANNING AHEAD
- --------------------------------------------------------------------------------
The uncertainty of future Fed action and other domestic and global market
forces supports our belief that successful investing includes a balanced
approach of owning a diversified portfolio and keeping a long-term perspective.
While diversification may not prevent losses in a downturn, it may help reduce
them and provide you with one way of managing risk. Our diverse family of more
than 120 mutual funds may also help. Each Fund is managed according to a
disciplined approach to investing that features the strategic thinking of
portfolio managers chosen for their in-depth knowledge and methodology. We
believe that our insistence on seeking skilled investment managers--our
subadvisers--who share our dedication to pursuing consistent long-term results
offers you a way to navigate changing market conditions and move forward with
your financial planning.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS. We appreciate your
confidence in us. Through each market cycle, we are committed to helping you
meet your financial needs. If you have any questions about your investment,
please contact your investment professional or call us at 1-800-222-8222. You
may also want to 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
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL SERVICES FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL SERVICES FUND (the Fund)
seeks long-term capital appreciation.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO FUND MANAGERS FUND INCEPTION
Allen J. Ayvazian 07/02/1962
Allen Wisniewski, CFA
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge Gross Net
--------------------------------- --------------------------------- Expense Expense
6-Month* 1-Year 5-Year 10-Year 6-Month* 1-Year 5-Year 10-Year Ratio 2 Ratio 3
- -----------------------------------------------------------------------------------------------------------------
Class A (0.41) 4.84 6.06 7.96 5.67 11.24 7.32 8.60 1.58% 1.35%
- -----------------------------------------------------------------------------------------------------------------
Class B 0.28 5.68 6.22 7.63 5.28 10.68 6.54 7.63 2.33% 2.10%
- -----------------------------------------------------------------------------------------------------------------
Class C 4.57 9.75 6.56 7.62 5.57 10.75 6.56 7.62 2.33% 2.10%
- -----------------------------------------------------------------------------------------------------------------
Benchmarks
- -----------------------------------------------------------------------------------------------------------------
S&P Financial Index 4 5.74 11.95 9.60 10.83
- -----------------------------------------------------------------------------------------------------------------
S&P 500 Index 5 8.60 15.23 8.54 8.04
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. THE USE OF DERIVATIVES MAY
REDUCE RETURNS AND/OR INCREASE VOLATILITY. CERTAIN INVESTMENT STRATEGIES TEND TO
INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS
FUND IS EXPOSED TO FINANCIAL SERVICES SECTOR RISK AND SMALL COMPANY INVESTMENT
RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND
OTHER RISKS.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 6,7 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Citigroup Incorporated 8.28%
- --------------------------------------------------------------------------------
Bank of America Corporation 8.13%
- --------------------------------------------------------------------------------
JPMorgan Chase & Company 6.17%
- --------------------------------------------------------------------------------
American International Group Incorporated 4.99%
- --------------------------------------------------------------------------------
Goldman Sachs Group Incorporated 4.63%
- --------------------------------------------------------------------------------
Wachovia Corporation 4.43%
- --------------------------------------------------------------------------------
Merrill Lynch & Company Incorporated 3.87%
- --------------------------------------------------------------------------------
Morgan Stanley 3.66%
- --------------------------------------------------------------------------------
Hartford Financial Services Group Incorporated 3.13%
- --------------------------------------------------------------------------------
American Express Company 2.86%
INDUSTRY DISTRIBUTION 6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Depository Institutions (43%)
Holdings & Other Investment Offices (2%)
Insurance Carriers (26%)
Non-Depository Credit Institutions (9%)
Security & Commodity Brokers, Dealers, Exchanges & Services (20%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Class B and Class C shares
reflects the performance of the Class A shares, adjusted to reflect Class B and
Class C sales charges and expenses.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The S&P Financial Index is a market capitalization-weighted index of companies
involved in activities such as banking, consumer finance, investment banking and
brokerage, asset management, insurance and investment, and real estate,
including REITS. You cannot invest directly in an Index.
5 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.
6 Equity holdings and industry distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of equity holdings and
industry distribution.
7 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
3
WELLS FARGO ADVANTAGE SPECIALTY FUNDS PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
WELLS FARGO ADVANTAGE SPECIALIZED HEALTH SCIENCES FUND
INVESTMENT OBJECTIVE
- --------------------------------------------------------------------------------
The WELLS FARGO ADVANTAGE SPECIALIZED HEALTH SCIENCES FUND (the Fund)
seeks long-term capital appreciation.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC RCM Capital Management, LLC
FUND MANAGER FUND INCEPTION DATE
Michael Dauchot, M.D. 04/02/2001
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
------------------------------ ------------------------------
Life Life Gross Net
of of Expense Expense
6-Month* 1-Year 5-Year Fund 6-Month* 1-Year 5-Year Fund Ratio 1 Ratio 2
- -------------------------------------------------------------------------------------------------------
Class A -0.24 2.72 4.27 2.67 5.84 8.99 5.51 3.67 2.27% 1.65%
- -------------------------------------------------------------------------------------------------------
Class B 0.46 3.13 4.36 2.88 5.46 8.13 4.69 2.88 3.02% 2.40%
- -------------------------------------------------------------------------------------------------------
Class C 4.45 7.12 4.71 2.90 5.45 8.12 4.71 2.90 3.00% 2.40%
- -------------------------------------------------------------------------------------------------------
Benchmarks
- -------------------------------------------------------------------------------------------------------
MSCI/World Health
Care Index 3 7.37 14.32 6.83 4.01
- -------------------------------------------------------------------------------------------------------
S&P 500 Index 4 8.60 15.23 8.54 6.14
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. THE USE OF DERIVATIVES MAY
REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING RESULTS IN INCREASED
TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER SHORT-TERM CAPITAL GAINS.
CERTAIN INVESTMENT STRATEGIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT
(RELATIVE TO THE BROADER MARKET). THIS FUND IS EXPOSED TO FOREIGN INVESTMENT
RISK, HEALTH SCIENCES SECTOR RISK, NONDIVERSIFICATION RISK AND SMALL COMPANY
INVESTMENT RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON
THESE AND OTHER RISKS.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Medtronic Incorporated 6.46%
- --------------------------------------------------------------------------------
Cardinal Health Incorporated 6.18%
- --------------------------------------------------------------------------------
Merck & Company Incorporated 4.43%
- --------------------------------------------------------------------------------
Thermo Fisher Scientific Incorporated 4.18%
- --------------------------------------------------------------------------------
CVS Corporation 4.07%
- --------------------------------------------------------------------------------
Johnson & Johnson 3.93%
- --------------------------------------------------------------------------------
Abbott Laboratories 3.90%
- --------------------------------------------------------------------------------
Wyeth 3.87%
- --------------------------------------------------------------------------------
Schering-Plough Corporation 3.72%
- --------------------------------------------------------------------------------
Community Health Systems Incorporated 3.56%
INDUSTRY DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Medical Equipment & Supplies (10%)
Apparel & Other Finished Products (1%)
Health Services (15%)
Chemicals & Allied Products (34%)
Biopharmaceuticals (18%)
Insurance Carriers (1%)
Measuring, Analyzing & Controlling Instruments (5%)
Medical Products (7%)
Medical Management Services (2%)
Miscellaneous Retail (7%)
- --------------------------------------------------------------------------------
1 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
2 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
3 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.
4 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.
5 Equity holdings and industry distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of equity holdings and
industry distribution.
6 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC RCM Capital Management, LLC
PORTFOLIO MANAGERS FUND INCEPTION DATE
Huachen Chen, CFA 09/18/2000
Walter C. Price, Jr., CFA
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge
-------------------------------- ---------------------------------
Life Life Gross Net
of of Expense Expense
6-Month* 1-Year 5-Year Fund 6-Month* 1-Year 5-Year Fund Ratio 2 Ratio 3
- -------------------------------------------------------------------------------------------------------------
Class A 2.08 (3.92) 10.59 (8.51) 8.27 1.90 11.88 (7.69) 1.83% 1.75%
- -------------------------------------------------------------------------------------------------------------
Class B 2.69 (3.92) 10.76 (8.39) 7.69 1.08 11.02 (8.39) 2.58% 2.50%
- -------------------------------------------------------------------------------------------------------------
Class C 6.92 0.08 10.98 (8.42) 7.92 1.08 10.98 (8.42) 2.58% 2.50%
- -------------------------------------------------------------------------------------------------------------
Class Z 8.10 1.73 11.71 (7.84) 2.00% 1.90%
Benchmarks
- -------------------------------------------------------------------------------------------------------------
Goldman Sachs
Technology Index 4 16.46 9.64 5.90 (10.52)
- -------------------------------------------------------------------------------------------------------------
S&P 500 Index 5 8.60 15.23 8.54 2.09
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. THE USE OF DERIVATIVES MAY
REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING RESULTS IN INCREASED
TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER SHORT-TERM CAPITAL GAINS.
CERTAIN INVESTMENT STRATEGIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT
(RELATIVE TO THE BROADER MARKET). THIS FUND IS EXPOSED TO FOREIGN INVESTMENT
RISK, NONDIVERSIFICATION RISK, SMALL COMPANY INVESTMENT RISK AND TECHNOLOGY
SECTOR RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE
AND OTHER RISKS.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 6,7 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Nintendo Company Limited 5.89%
- --------------------------------------------------------------------------------
Microsoft Corporation 4.67%
- --------------------------------------------------------------------------------
Intel Corporation 4.42%
- --------------------------------------------------------------------------------
Apple Incorporated 4.37%
- --------------------------------------------------------------------------------
Cisco Systems Incorporated 4.35%
- --------------------------------------------------------------------------------
NII Holdings Incorporated 4.22%
- --------------------------------------------------------------------------------
Google Incorporated Class A 4.12%
- --------------------------------------------------------------------------------
NVIDIA Corporation 3.87%
- --------------------------------------------------------------------------------
Qualcomm Incorporated 3.65%
- --------------------------------------------------------------------------------
Salesforce.com Incorporated 2.91%
INDUSTRY DISTRIBUTION 6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Miscellaneous Manufacturing Industries (1%)
Chemicals & Allied Products (3%)
Business Services (26%)
Stone, Clay, Glass & Concrete Products (2%)
Industrial & Commercial Machinery & Computer Equipment (8%)
Electronics, Gas & Sanitary Services (2%)
Electronics & Other Electrical Equipment & Components (45%)
Food & Kindred Products (1%)
Engineering Construction (1%)
Communications (9%)
Measuring, Analyzing & Controlling Instruments (2%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Class Z shares reflects the
performance of the Class A shares, adjusted to reflect Class Z expenses.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Goldman Sachs Technology Index is a modified capitalization-weighted index
of selected technology stocks. You cannot invest directly in an Index.
5 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.
6 Equity holdings and industry distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of equity holdings and
industry distribution.
7 The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the portfolio.
7
WELLS FARGO ADVANTAGE SPECIALTY 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,
2006 to April 30, 2007).
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
11/01/2006 04/30/2007 Period* Expense Ratio
WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL
SERVICES FUND
- ------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized Financial
Services Fund - Class A Actual $ 1,000.00 $ 1,056.70 $ 6.88 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 $ 1,052.80 $10.69 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 $ 1,055.70 $10.70 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 $ 1,058.40 $ 8.42 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 $ 1,054.60 $12.23 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 $ 1,054.50 $12.23 2.40%
- ------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,012.89 $11.98 2.40%
8
FUND EXPENSES WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
11/01/2006 04/30/2007 Period* Expense Ratio
WELLS FARGO ADVANTAGE SPECIALIZED TECHNOLOGY FUND
(CONTINUED)
- ------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Specialized
Technology Fund - Class A Actual $ 1,000.00 $ 1,082.70 $ 9.04 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 $ 1,076.90 $ 12.87 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 $ 1,079.20 $ 12.89 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 $ 1,081.00 $ 9.80 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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.64%
DEPOSITORY INSTITUTIONS - 42.50%
553,262 BANK OF AMERICA CORPORATION $ 28,161,036
228,300 BANK OF NEW YORK COMPANY INCORPORATED 9,241,584
27,250 BANK OF THE OZARKS INCORPORATED<< 803,058
535,000 CITIGROUP INCORPORATED 28,686,700
39,800 CITY NATIONAL CORPORATION 2,914,156
44,242 CULLEN FROST BANKERS INCORPORATED 2,263,863
65,800 INDEPENDENT BANK CORPORATION 1,954,260
410,000 JPMORGAN CHASE & COMPANY 21,361,000
54,000 MARSHALL & ILSLEY CORPORATION 2,593,080
77,000 NORTHERN TRUST CORPORATION 4,847,150
91,300 PNC FINANCIAL SERVICES GROUP 6,765,330
76,000 STATE STREET CORPORATION 5,234,120
55,300 SUNTRUST BANKS INCORPORATED 4,668,426
267,800 US BANCORP 9,198,930
276,046 WACHOVIA CORPORATION 15,331,595
45,200 ZIONS BANCORPORATION 3,697,360
147,721,648
--------------
HOLDING & OTHER INVESTMENT OFFICES - 1.43%
46,000 MAGUIRE PROPERTIES INCORPORATED 1,657,380
51,000 PROLOGIS 3,304,800
4,962,180
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 1.40%
105,800 NATIONAL FINANCIAL PARTNERS CORPORATION<< 4,874,206
--------------
INSURANCE CARRIERS - 24.15%
57,800 ACE LIMITED 3,436,788
71,600 ALLSTATE CORPORATION 4,462,112
247,000 AMERICAN INTERNATIONAL GROUP INCORPORATED 17,267,770
74,800 CHUBB CORPORATION 4,026,484
39,700 EVEREST REINSURANCE GROUP LIMITED 3,995,408
140,000 FIDELITY NATIONAL TITLE GROUP INCORPORATED 3,568,600
107,000 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 10,828,400
76,000 ING GROUP NV ADR 3,466,360
57,000 MANULIFE FINANCIAL CORPORATION<< 2,058,270
73,000 MAX CAPITAL GROUP LIMITED<< 1,956,400
31,700 METLIFE INCORPORATED 2,082,690
93,000 PRUDENTIAL FINANCIAL INCORPORATED 8,835,000
56,000 RENAISSANCERE HOLDINGS LIMITED 3,032,400
107,800 SELECTIVE INSURANCE GROUP INCORPORATED<< 2,811,424
163,400 TRAVELERS COMPANIES INCORPORATED 8,839,940
42,000 XL CAPITAL LIMITED CLASS A 3,275,160
83,943,206
--------------
10
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
NON-DEPOSITORY CREDIT INSTITUTIONS - 9.90%
68,800 AMERICAN CAPITAL STRATEGIES LIMITED<< $ 3,349,184
163,000 AMERICAN EXPRESS COMPANY 9,889,210
94,000 CAPITAL ONE FINANCIAL CORPORATION 6,980,440
87,000 FANNIE MAE 5,126,040
98,500 FREDDIE MAC 6,380,830
133,600 PEOPLE'S UNITED FINANCIAL INCORPORATED 2,659,976
34,385,680
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 20.26%
53,300 ALLIANCE BERNSTEIN HOLDING LP<< 4,848,168
161,900 AMVESCAP PLC ADR 3,838,649
41,700 BEAR STEARNS COMPANIES INCORPORATED 6,492,690
150,000 CHARLES SCHWAB CORPORATION 2,868,000
70,000 E*TRADE FINANCIAL CORPORATION+ 1,545,600
100,000 FEDERATED INVESTORS INCORPORATED CLASS B 3,816,000
73,400 GOLDMAN SACHS GROUP INCORPORATED 16,045,974
65,000 LEHMAN BROTHERS HOLDINGS INCORPORATED 4,893,200
148,400 MERRILL LYNCH & COMPANY INCORPORATED 13,390,132
151,000 MORGAN STANLEY 12,685,510
70,423,923
--------------
TOTAL COMMON STOCKS (COST $243,546,368) 346,310,843
--------------
COLLATERAL FOR SECURITIES LENDING - 3.21%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
50,891 SCUDDER DAILY ASSETS MONEY MARKET FUND 50,891
2,576 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 2,576
53,467
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 3.20%
$ 156,320 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47% 08/16/2007 156,380
30,535 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37 05/14/2008 30,536
37,144 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 36,987
84,818 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 84,826
84,818 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 84,827
254,455 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 254,470
135,709 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $135,729) 5.36 05/01/2007 135,709
135,709 BUCKINGHAM II CDO LLC 5.31 05/29/2007 135,156
67,855 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 67,835
84,818 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 84,546
40,713 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 40,535
33,927 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 33,759
67,855 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 67,489
50,891 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 50,558
88,211 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 87,557
142,495 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 141,023
11
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 96,992 CEDAR SPRINGS CAPITAL COMPANY++ 5.28% 05/16/2007 $ 96,779
112,503 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 112,175
169,637 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 168,722
46,504 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 46,220
12,305 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 12,228
64,462 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 64,049
33,927 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 33,582
71,078 CHARTA LLC++ 5.31 06/22/2007 70,540
15,132 CHEYNE FINANCE LLC 5.30 05/14/2007 15,103
33,927 CHEYNE FINANCE LLC 5.29 06/19/2007 33,685
220,528 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 220,486
84,818 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 84,824
36,251 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 36,262
37,405 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 37,419
33,927 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 33,926
1,017,820 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $1,017,972) 5.36 05/01/2007 1,017,820
44,106 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 43,560
16,964 COMERICA BANK+/- 5.32 02/08/2008 16,935
137,066 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 136,866
271,419 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 270,626
84,818 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 84,797
169,637 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 169,635
50,891 DEER VALLEY FUNDING LLC 5.31 05/07/2007 50,847
131,377 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 131,205
127,228 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 126,968
84,818 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 84,608
16,445 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 16,397
123,139 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 122,279
742,758 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $742,869) 5.36 05/01/2007 742,758
169,637 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 169,649
22,127 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 21,915
42,392 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 42,399
94,997 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 94,609
84,818 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 84,819
6,785 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 6,786
118,746 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 118,754
220,528 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 220,528
84,818 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 84,829
20,356 K2 (USA) LLC+/-++ 5.30 07/16/2007 20,358
33,927 K2 (USA) LLC+/-++ 5.33 09/28/2007 33,927
10,321 KESTREL FUNDING US LLC 5.27 05/21/2007 10,291
154,268 KESTREL FUNDING US LLC++ 5.30 06/28/2007 152,966
186,600 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 186,595
169,637 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 168,353
22,877 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 22,634
101,782 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 100,597
61,069 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 60,332
208,107 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 205,562
12
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 47,570 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32% 05/02/2007 $ 47,562
51,878 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 51,772
42,409 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 42,409
220,528 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 220,206
11,556 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 11,534
95,719 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 95,426
244,277 LIQUID FUNDING LIMITED 5.30 05/07/2007 244,064
10,178 LIQUID FUNDING LIMITED 5.31 07/30/2007 10,045
217,135 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 217,135
71,587 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 71,615
84,818 MORGAN STANLEY+/- 5.31 07/12/2007 84,818
124,547 MORGAN STANLEY+/- 5.48 07/27/2007 124,580
84,818 MORGAN STANLEY+/- 5.38 08/07/2007 84,818
750,946 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $751,058) 5.36 05/01/2007 750,946
15,691 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 15,693
13,571 NATIONAL CITY BANK+/- 5.41 09/04/2007 13,573
97,253 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 97,289
63,325 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 63,251
169,637 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 169,647
49,004 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 49,004
16,964 PICAROS FUNDING PLC++ 5.27 06/22/2007 16,835
96,693 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 96,828
84,818 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 84,818
64,462 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 64,462
13,724 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 13,727
42,650 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 42,563
122,138 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 122,119
78,033 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 78,033
13,571 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 13,352
67,855 SLM CORPORATION+/-++ 5.33 05/12/2008 67,762
94,997 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 95,033
67,855 TANGO FINANCE CORPORATION 5.32 07/31/2007 66,958
19,613 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 19,613
84,818 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 84,823
84,818 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 84,824
33,927 VERSAILLES CDS LLC++ 5.31 05/11/2007 33,878
169,637 VETRA FINANCE CORPORATION 5.28 06/12/2007 168,600
23,983 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 23,938
77,907 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 77,091
7,162 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 7,138
11,107,179
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $11,160,646) 11,160,646
--------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 0.24%
854,425 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ $ 854,425
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $854,425) 854,425
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $255,561,439)* 103.09% $ 358,325,914
OTHER ASSETS AND LIABILITIES, NET (3.09) (10,756,030)
------ --------------
TOTAL NET ASSETS 100.00% $ 347,569,884
====== ==============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4 (2) OF THE
SECURITIES ACT OF 1933, AS AMENDED.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $854,425.
* 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, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 98.39%
BIOPHARMACEUTICALS - 19.59%
4,120 ALEXION PHARMACEUTICALS INCORPORATED+<< $ 172,463
3,870 APPLERA CORPORATION-CELERA GROUP+ 54,180
7,110 BIOMIMETIC THERAPEUTICS INCORPORATED+ 133,241
10,470 CELGENE CORPORATION+<< 640,345
4,991 CEPHALON INCORPORATED+<< 397,334
5,020 COLEY PHARMACEUTICAL GROUP INCORPORATED+<< 49,899
3,750 DIGENE CORPORATION+ 171,938
3,230 GENENTECH INCORPORATED+ 258,368
6,067 GENZYME CORPORATION+ 396,236
6,170 GILEAD SCIENCES INCORPORATED+ 504,212
4,091 HUMAN GENOME SCIENCES INCORPORATED+<< 44,060
4,101 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR<< 157,109
7,310 THERAVANCE INCORPORATED+<< 242,180
8,630 UNITED THERAPEUTICS CORPORATION+<< 482,503
3,704,068
--------------
CHEMICALS & ALLIED PRODUCTS - 32.49%
12,817 ABBOTT LABORATORIES 725,699
7,716 AMGEN INCORPORATED+ 494,904
3,602 AMYLIN PHARMACEUTICALS INCORPORATED+<< 148,871
20,382 BRISTOL-MYERS SQUIBB COMPANY# 588,225
8,983 ELI LILLY & COMPANY<< 531,165
8,552 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 264,599
11,394 JOHNSON & JOHNSON 731,723
16,047 MERCK & COMPANY INCORPORATED 825,458
21,848 SCHERING-PLOUGH CORPORATION 693,237
5,980 SHIRE PLC ADR 417,942
12,981 WYETH 720,446
6,142,269
--------------
HEALTH SERVICES - 11.04%
16,458 CARDINAL HEALTH INCORPORATED# 1,151,237
18,014 COMMUNITY HEALTH SYSTEMS INCORPORATED+ 662,915
4,521 COVANCE INCORPORATED+ 273,521
2,087,673
--------------
INSURANCE CARRIERS - 1.00%
2,405 WELLPOINT INCORPORATED+ 189,923
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 4.12%
14,941 THERMO FISHER SCIENTIFIC INCORPORATED+ 777,828
--------------
MEDICAL EQUIPMENT & SUPPLIES - 10.28%
1,148 CYTYC CORPORATION+ 40,440
6,096 KYPHON INCORPORATED+<< 284,135
22,720 MEDTRONIC INCORPORATED<< 1,202,570
5,695 MINDRAY MEDICAL INTERNATIONAL LIMITED ADR<<# 131,042
1,430 NORTHSTAR NEUROSCIENCE INCORPORATED 19,477
15
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEDICAL EQUIPMENT & SUPPLIES (CONTINUED)
2,411 NUVASIVE INCORPORATED+ $ 62,131
4,746 ST. JUDE MEDICAL INCORPORATED+ 203,081
1,942,876
---------------
MEDICAL MANAGEMENT SERVICES - 7.22%
4,630 COVENTRY HEALTH CARE INCORPORATED+ 267,753
5,710 EXPRESS SCRIPTS INCORPORATED+<< 545,591
7,059 MEDCO HEALTH SOLUTIONS INCORPORATED+ 550,743
1,364,087
---------------
MEDICAL PRODUCTS - 8.64%
3,118 ALLERGAN INCORPORATED 377,902
422 NOBEL BIOCARE HOLDING AG 151,937
6,703 STRYKER CORPORATION<< 435,293
9,280 XTENT INCORPORATED+<< 125,466
6,000 ZIMMER HOLDINGS INCORPORATED+ 542,880
1,633,478
---------------
MISCELLANEOUS RETAIL - 4.01%
20,920 CVS CORPORATION 758,141
---------------
TOTAL COMMON STOCKS (COST $17,385,230) 18,600,343
---------------
CONTRACTS STRIKE PRICE EXPIRATION DATE
OPTIONS - 0.11%
106 AMGEN INCORPORATED PUT $ 55.00 05/19/2007 318
19 MEDIMMUNE INCORPORATED PUT 50.00 01/19/2008 1,235
203 NEKTAR THERAPEUTICS PUT 12.50 05/19/2007 10,150
46 VERTEX PHARMACEUTICALS INCORPORATED PUT 30.00 07/21/2007 9,614
TOTAL OPTIONS (PREMIUMS PAID $68,763) 21,317
---------------
SHARES
COLLATERAL FOR SECURITIES LENDING - 26.52%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.13%
22,857 SCUDDER DAILY ASSETS MONEY MARKET FUND 22,857
1,157 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 1,157
24,014
---------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 26.39%
$ 70,208 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47% 08/16/2007 70,235
13,714 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37 05/14/2008 13,715
16,682 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 16,612
38,094 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 38,098
38,094 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 38,098
114,283 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 114,290
60,951 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $60,960) 5.36 05/01/2007 60,951
16
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 60,951 BUCKINGHAM II CDO LLC 5.31% 05/29/2007 $ 60,702
30,475 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 30,467
38,094 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 37,972
18,285 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 18,205
15,238 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 15,162
30,475 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 30,311
22,857 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 22,707
39,618 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 39,324
63,999 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 63,337
43,562 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 43,466
50,528 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 50,381
76,189 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 75,778
20,886 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 20,759
5,527 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 5,492
28,952 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 28,766
15,238 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 15,082
31,923 CHARTA LLC++ 5.31 06/22/2007 31,681
6,796 CHEYNE FINANCE LLC 5.30 05/14/2007 6,783
15,238 CHEYNE FINANCE LLC 5.29 06/19/2007 15,129
99,045 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 99,027
38,094 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 38,097
16,282 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 16,286
16,800 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 16,806
15,238 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 15,237
457,132 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $457,200) 5.36 05/01/2007 457,132
19,809 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 19,564
7,619 COMERICA BANK+/- 5.32 02/08/2008 7,606
61,560 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 61,471
121,902 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 121,546
38,094 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 38,085
76,189 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 76,188
22,857 DEER VALLEY FUNDING LLC 5.31 05/07/2007 22,837
59,005 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 58,928
57,142 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 57,025
38,094 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 38,000
7,386 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 7,364
55,305 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 54,919
333,594 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $333,644) 5.36 05/01/2007 333,594
76,189 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 76,194
9,938 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 9,843
19,040 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 19,043
42,666 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 42,492
38,094 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 38,095
3,048 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 3,048
53,332 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 53,336
99,045 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 99,045
38,094 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 38,099
9,143 K2 (USA) LLC+/-++ 5.30 07/16/2007 9,143
17
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 15,238 K2 (USA) LLC+/-++ 5.33% 09/28/2007 $ 15,238
4,635 KESTREL FUNDING US LLC 5.27 05/21/2007 4,622
69,286 KESTREL FUNDING US LLC++ 5.30 06/28/2007 68,701
83,808 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 83,805
76,189 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 75,612
10,275 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 10,166
45,713 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 45,181
27,428 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 27,097
93,467 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 92,324
21,365 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 21,362
23,300 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 23,253
19,047 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 19,047
99,045 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 98,901
5,190 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 5,180
42,990 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 42,859
109,712 LIQUID FUNDING LIMITED 5.30 05/07/2007 109,616
4,571 LIQUID FUNDING LIMITED 5.31 07/30/2007 4,511
97,522 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 97,522
32,152 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 32,165
38,094 MORGAN STANLEY+/- 5.31 07/12/2007 38,094
55,938 MORGAN STANLEY+/- 5.48 07/27/2007 55,952
38,094 MORGAN STANLEY+/- 5.38 08/07/2007 38,094
337,272 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $337,322) 5.36 05/01/2007 337,272
7,047 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 7,048
6,095 NATIONAL CITY BANK+/- 5.41 09/04/2007 6,096
43,679 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 43,695
28,441 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 28,408
76,189 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 76,193
22,009 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 22,009
7,619 PICAROS FUNDING PLC++ 5.27 06/22/2007 7,561
43,428 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 43,488
38,094 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 38,094
28,952 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 28,952
6,164 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 6,165
19,155 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 19,116
54,856 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 54,847
35,047 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 35,047
6,095 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 5,997
30,475 SLM CORPORATION+/-++ 5.33 05/12/2008 30,434
42,666 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 42,682
30,475 TANGO FINANCE CORPORATION 5.32 07/31/2007 30,073
8,809 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 8,809
38,094 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 38,097
38,094 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 38,097
15,238 VERSAILLES CDS LLC++ 5.31 05/11/2007 15,215
76,189 VETRA FINANCE CORPORATION 5.28 06/12/2007 75,721
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
18
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 10,772 WHISTLEJACKET CAPITAL LIMITED 5.30% 05/14/2007 $ 10,751
34,990 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 34,624
3,217 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 3,206
4,988,552
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $5,012,566) 5,012,566
--------------
SHARES
SHORT-TERM INVESTMENTS - 1.71%
323,439 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 323,439
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $323,439) 323,439
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $22,789,998)* 126.73% $ 23,957,665
OTHER ASSETS AND LIABILITIES, NET (26.73) (5,053,810)
------ --------------
TOTAL NET ASSETS 100.00% $ 18,903,855
====== ==============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS. (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.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $323,439.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS - (0.01%)
(40) MINDRAY MEDICAL INTERNATIONAL LIMITED ADR CALL $ 30.00 07/21/2007 $ (1,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(6,097)) $ (1,000)
--------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
19
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 94.67%
BUSINESS SERVICES - 23.98%
259,125 ACTIVISION INCORPORATED+<< $ 5,182,500
132,215 AUTODESK INCORPORATED+ 5,456,513
76,280 CERNER CORPORATION+<<# 4,061,147
40,075 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 3,582,705
113,100 FOCUS MEDIA HOLDING LIMITED+<< 4,184,700
17,225 GOOGLE INCORPORATED CLASS A+ 8,119,521
307,000 MICROSOFT CORPORATION 9,191,580
83,332 RED HAT INCORPORATED+<< 1,761,638
136,400 SALESFORCE.COM INCORPORATED+<< 5,728,800
83,050 THQ INCORPORATED+<< 2,771,379
50,040,483
--------------
CHEMICALS & ALLIED PRODUCTS - 2.97%
66,335 MONSANTO COMPANY 3,913,102
12,544 WACKER CHEMIE AG 2,280,450
6,193,552
--------------
COMMUNICATIONS - 8.55%
87,041 BHARTI AIRTEL LIMITED+ 1,704,575
410,037 LEVEL 3 COMMUNICATIONS INCORPORATED+<< 2,279,806
108,240 NII HOLDINGS INCORPORATED+<< 8,307,420
466,110 PT TELEKOMUNIKASI INDONESIA 533,194
1,474,400 TENCENT HOLDINGS LIMITED 5,020,658
17,845,653
--------------
ELECTRIC, GAS & SANITARY SERVICES - 6.10%
32,709 FIRST SOLAR INCORPORATED+<< 1,962,213
36,051 Q-CELLS AG+ 2,589,375
86,005 RENEWABLE ENERGY CORPORATION AS+ 2,461,405
57,763 SUNPOWER CORPORATION+<< 3,505,059
61,000 SUNTECH POWER HOLDINGS COMPANY LIMITED ADR+<< 2,213,080
12,731,132
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 41.56%
207,500 ABB LIMITED 4,146,414
91,445 ANALOG DEVICES INCORPORATED 3,531,606
29,225 BROADCOM CORPORATION CLASS A+ 951,274
5,382,000 CHARTERED SEMICONDUCTOR MANUFACTURING LIMITED+ 5,022,525
320,700 CISCO SYSTEMS INCORPORATED+ 8,575,518
195,450 COMVERSE TECHNOLOGY INCORPORATED+<< 4,432,806
323,200 INFINEON TECHNOLOGIES AG+ 5,013,726
405,390 INTEL CORPORATION 8,715,885
29,130 INTERNATIONAL RECTIFIER CORPORATION+ 1,027,706
76,620 MARVELL TECHNOLOGY GROUP LIMITED+<< 1,235,881
75,510 MAXIM INTEGRATED PRODUCTS INCORPORATED 2,395,177
37,814 MEMC ELECTRONIC MATERIALS INCORPORATED+ 2,075,232
37,175 NINTENDO COMPANY LIMITED 11,612,462
20
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
231,750 NVIDIA CORPORATION+ 7,622,258
232,685 ON SEMICONDUCTOR CORPORATION+<< 2,492,056
164,350 QUALCOMM INCORPORATED 7,198,530
143,440 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED ADR 1,511,858
69,710 TELEFONAKTIEBOLAGET LM ERICSSON ADR<< 2,660,831
120,400 TEXAS INSTRUMENTS INCORPORATED 4,138,148
35,750 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES INCORPORATED+ 2,372,370
86,732,263
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.60%
86,345 APPLE INCORPORATED+ 8,617,231
42,750 GAMESTOP CORPORATION CLASS A+ 1,418,018
28,460 RESEARCH IN MOTION LIMITED+ 3,744,767
13,780,016
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.24%
72,910 ENERGY CONVERSION DEVICES INCORPORATED+<< 2,581,743
--------------
MISCELLANEOUS RETAIL - 1.13%
148,325 ORKLA ASA 2,364,508
--------------
OIL & GAS EXTRACTION - 0.94%
30,380 CAMERON INTERNATIONAL CORPORATION+ 1,961,637
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.60%
141,120 CORNING INCORPORATED+ 3,347,366
--------------
TOTAL COMMON STOCKS (COST $175,834,828) 197,578,353
--------------
RIGHTS - 0.00%
30,500 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
--------------
EXPIRATION DATE
WARRANTS - 2.65%
784,550 HON HIA PRECISION INDUSTRY COMPANY LIMITED WARRANTS+ 11/17/2010 5,216,159
26,530 MACQUARIE BANK LIMITED WARRANTS 01/28/2012 327,542
TOTAL WARRANTS (COST $5,258,736) 5,543,701
--------------
COLLATERAL FOR SECURITIES LENDING - 19.63%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.10%
186,770 SCUDDER DAILY ASSETS MONEY MARKET FUND 186,770
9,454 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 9,454
196,224
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 19.53%
$ 573,695 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47% 08/16/2007 573,913
112,062 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37 05/14/2008 112,067
136,317 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 135,741
311,283 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 311,311
21
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 311,283 BANCO SANTANDER TOTTA LOAN+/-++ 5.32% 05/16/2008 $ 311,315
933,850 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 933,906
498,054 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $498,128) 5.36 05/01/2007 498,054
498,054 BUCKINGHAM II CDO LLC 5.31 05/29/2007 496,022
249,027 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 248,955
311,283 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 310,284
149,416 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 148,763
124,513 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 123,897
249,027 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 247,685
186,770 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 185,547
323,735 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 321,333
522,956 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 517,554
355,959 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 355,179
412,886 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 411,681
622,567 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 619,211
170,671 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 169,628
45,161 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 44,878
236,575 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 235,061
124,513 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 123,245
260,856 CHARTA LLC++ 5.31 06/22/2007 258,881
55,533 CHEYNE FINANCE LLC 5.30 05/14/2007 55,427
124,513 CHEYNE FINANCE LLC 5.29 06/19/2007 123,626
809,337 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 809,183
311,283 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 311,305
133,043 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 133,082
137,276 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 137,330
124,513 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 124,508
3,735,402 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $3,735,958) 5.36 05/01/2007 3,735,402
161,867 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 159,865
62,257 COMERICA BANK+/- 5.32 02/08/2008 62,151
503,034 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 502,300
996,107 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 993,198
311,283 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 311,206
622,567 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 622,561
186,770 DEER VALLEY FUNDING LLC 5.31 05/07/2007 186,608
482,153 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 481,522
466,925 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 465,973
311,283 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 310,511
60,352 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 60,175
451,921 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 448,762
2,725,923 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $2,726,329) 5.36 05/01/2007 2,725,923
622,567 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 622,611
81,208 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 80,427
155,579 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 155,606
348,637 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 347,215
311,283 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 311,287
24,903 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 24,903
435,797 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 435,827
22
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 809,337 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39% 09/17/2007 $ 809,337
311,283 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 311,324
74,708 K2 (USA) LLC+/-++ 5.30 07/16/2007 74,714
124,513 K2 (USA) LLC+/-++ 5.33 09/28/2007 124,513
37,877 KESTREL FUNDING US LLC 5.27 05/21/2007 37,766
566,162 KESTREL FUNDING US LLC++ 5.30 06/28/2007 561,384
684,824 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 684,803
622,567 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 617,854
83,959 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 83,067
373,540 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 369,192
224,124 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 221,417
763,753 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 754,412
174,580 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 174,554
190,393 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 190,005
155,642 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 155,640
809,337 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 808,155
42,409 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 42,329
351,290 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 350,215
896,496 LIQUID FUNDING LIMITED 5.30 05/07/2007 895,716
37,354 LIQUID FUNDING LIMITED 5.31 07/30/2007 36,865
796,886 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 796,886
262,723 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 262,828
311,283 MORGAN STANLEY+/- 5.31 07/12/2007 311,283
457,089 MORGAN STANLEY+/- 5.48 07/27/2007 457,208
311,283 MORGAN STANLEY+/- 5.38 08/07/2007 311,283
2,755,974 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $2,756,384) 5.36 05/01/2007 2,755,974
57,587 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 57,592
49,805 NATIONAL CITY BANK+/- 5.41 09/04/2007 49,811
356,918 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 357,050
232,404 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 232,132
622,567 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 622,604
179,843 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 179,843
62,257 PICAROS FUNDING PLC++ 5.27 06/22/2007 61,785
354,863 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 355,360
311,283 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 311,283
236,575 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 236,575
50,366 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 50,377
156,526 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 156,206
448,248 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 448,176
286,381 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 286,381
49,805 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 49,002
249,027 SLM CORPORATION+/-++ 5.33 05/12/2008 248,688
348,637 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 348,770
249,027 TANGO FINANCE CORPORATION 5.32 07/31/2007 245,735
71,981 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 71,980
311,283 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 311,302
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 311,283 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34% 05/08/2008 $ 311,305
124,513 VERSAILLES CDS LLC++ 5.31 05/11/2007 124,332
622,567 VETRA FINANCE CORPORATION 5.28 06/12/2007 618,763
88,019 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 87,851
285,920 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 282,924
26,285 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 26,200
40,763,356
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $40,959,580) 40,959,580
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $222,053,144)* 116.95% $ 244,081,634
OTHER ASSETS AND LIABILITIES, NET (16.95) (35,378,395)
------ --------------
TOTAL NET ASSETS 100.00% $ 208,703,239
====== ==============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS. (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.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE 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.
24
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIALIZED SPECIALIZED SPECIALIZED
FINANCIAL HEALTH TECHNOLOGY
SERVICES FUND SCIENCES FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .................................................. $ 346,310,843 $ 18,621,660 $ 203,122,054
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ....................................... 11,160,646 5,012,566 40,959,580
INVESTMENTS IN AFFILIATES ....................................................... 854,425 323,439 0
----------------------------------------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ................................ 358,325,914 23,957,665 244,081,634
----------------------------------------------
CASH ............................................................................ 50,000 150,520 0
RECEIVABLE FOR FUND SHARES ISSUED ............................................... 0 124 27,790
RECEIVABLE FOR INVESTMENTS SOLD ................................................. 482,294 698,851 10,300,624
RECEIVABLES FOR DIVIDENDS AND INTEREST .......................................... 336,694 30,360 342,292
----------------------------------------------
TOTAL ASSETS ...................................................................... 359,194,902 24,837,520 254,752,340
----------------------------------------------
LIABILITIES
OPTION WRITTEN, AT VALUE ........................................................ 0 1,000 0
PAYABLE TO CUSTODIAN FOR OVERDRAFTS ............................................. 0 0 38,543
FOREIGN TAXES PAYABLE ........................................................... 0 0 12,945
PAYABLE FOR FUND SHARES REDEEMED ................................................ 37,190 118,503 219,460
PAYABLE FOR INVESTMENTS PURCHASED ............................................... 0 741,243 4,489,627
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ........................... 303,757 23,618 240,884
PAYABLE FOR SECURITIES LOANED (NOTE 2) .......................................... 11,160,646 5,012,566 40,959,580
ACCRUED EXPENSES AND OTHER LIABILITIES .......................................... 123,425 36,735 88,062
----------------------------------------------
TOTAL LIABILITIES ................................................................. 11,625,018 5,933,665 46,049,101
----------------------------------------------
TOTAL NET ASSETS .................................................................. $ 347,569,884 $ 18,903,855 $ 208,703,239
==============================================
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ................................................................. $ 227,550,590 $ 16,987,832 $ 353,227,868
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ...................................... 280,927 (81,891) (1,334,136)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ........................... 16,973,892 824,952 (165,198,680)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ....... 102,764,475 1,167,865 22,008,187
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT
SALES ......................................................................... 0 5,097 0
----------------------------------------------
TOTAL NET ASSETS .................................................................. $ 347,569,884 $ 18,903,855 $ 208,703,239
----------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A ............................................................ $ 343,324,944 $ 7,423,347 $ 106,307,533
SHARES OUTSTANDING - CLASS A .................................................... 83,068,748 628,718 18,052,250
NET ASSET VALUE PER SHARE - CLASS A ............................................. $ 4.13 $ 11.81 $ 5.89
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ................................... $ 4.38 $ 12.53 $ 6.25
NET ASSETS - CLASS B ............................................................ $ 3,260,384 $ 10,642,100 $ 22,392,981
SHARES OUTSTANDING - CLASS B .................................................... 790,877 946,322 3,996,689
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B .......................... $ 4.12 $ 11.25 $ 5.60
NET ASSETS - CLASS C ............................................................ $ 984,556 $ 838,408 $ 4,821,367
SHARES OUTSTANDING - CLASS C .................................................... 240,414 74,472 862,507
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C .......................... $ 4.10 $ 11.26 $ 5.59
NET ASSETS - CLASS Z ............................................................ N/A N/A $ 75,181,358
SHARES OUTSTANDING - CLASS Z .................................................... N/A N/A 12,807,426
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z .......................... N/A N/A $ 5.87
----------------------------------------------
INVESTMENTS AT COST ............................................................... $ 255,561,439 $ 22,789,998 $ 222,053,144
==============================================
SECURITIES ON LOAN, AT MARKET VALUE ............................................... $ 10,840,899 $ 4,815,365 $ 38,703,041
==============================================
PREMIUMS RECEIVED ON WRITTEN OPTIONS .............................................. $ 0 $ 6,097 $ 0
==============================================
(1) EACH FUND HAS AN UNLIMITED NUMBER OF AUTHORIZED SHARES.
(2) MAXIMUM OFFERING PRICE IS COMPUTED AS 100/94.25 OF NET ASSET VALUE. ON
INVESTMENT OF $50,000 OR MORE, THE OFFERING PRICE IS REDUCED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
25
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED SPECIALIZED SPECIALIZED
FINANCIAL HEALTH TECHNOLOGY
SERVICES FUND SCIENCES FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .................................................................... $ 4,451,677 $ 110,207 $ 518,406
INCOME FROM AFFILIATED SECURITIES ............................................... 39,454 15,984 182,146
SECURITIES LENDING INCOME, NET .................................................. 35,382 1,131 36,816
----------------------------------------------
TOTAL INVESTMENT INCOME ........................................................... 4,526,513 127,322 737,368
----------------------------------------------
EXPENSES
ADVISORY FEES ................................................................... 1,678,804 94,662 1,142,266
ADMINISTRATION FEES
FUND LEVEL .................................................................... 88,358 4,982 54,394
CLASS A ....................................................................... 488,292 11,177 154,574
CLASS B ....................................................................... 5,074 15,507 32,962
CLASS C ....................................................................... 1,439 1,218 7,213
CLASS Z ....................................................................... N/A N/A 176,554
CUSTODY FEES .................................................................... 35,343 6,975 76,151
SHAREHOLDER SERVICING FEES (NOTE 3) ............................................. 441,790 24,911 271,969
ACCOUNTING FEES ................................................................. 18,223 10,881 18,125
DISTRIBUTION FEES (NOTE 3)
CLASS B ....................................................................... 13,592 41,536 88,290
CLASS C ....................................................................... 3,853 3,261 19,321
PROFESSIONAL FEES ............................................................... 12,054 8,427 10,867
REGISTRATION FEES ............................................................... 2,500 2,361 22,623
SHAREHOLDER REPORTS ............................................................. 30,807 8,570 44,366
TRUSTEES' FEES .................................................................. 4,478 4,478 4,478
OTHER FEES AND EXPENSES ......................................................... 660 405 1,992
----------------------------------------------
TOTAL EXPENSES .................................................................... 2,825,267 239,351 2,126,145
----------------------------------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .................................... (420,824) (30,138) (55,901)
NET EXPENSES .................................................................... 2,404,443 209,213 2,070,244
----------------------------------------------
NET INVESTMENT INCOME (LOSS) ...................................................... 2,122,070 (81,891) (1,332,876)
----------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
====================================================================================================================================
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................. 18,801,130 1,329,278 15,942,743
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ............................ 0 (71,838) 450,517
----------------------------------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ......................................... 18,801,130 1,257,440 16,393,260
----------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ................. (860,167) (103,985) 1,921,178
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ............................ 0 (38,422) 18,392
----------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ............... (860,167) (142,407) 1,939,570
==============================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ............................ 17,940,963 1,115,033 18,332,830
==============================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................... $ 20,063,033 $ 1,033,142 $ 16,999,954
==============================================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ......................................... $ 2,930 $ 94 $ 28,028
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
26
-- THIS PAGE IS INTENTIONALLY LEFT BLANK
27
WELLS FARGO ADVANTAGE SPECIALTY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ..................................................................... $ 359,168,516 $ 375,715,422
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................................. 2,122,070 4,226,095
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................................. 18,801,130 29,077,276
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...................... (860,167) 26,578,520
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. 20,063,033 59,881,891
-----------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................... (1,935,160) (4,117,197)
CLASS B ............................................................................... (6,050) (15,821)
CLASS C ............................................................................... (1,729) (4,516)
CLASS Z ............................................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................... (26,130,265) (15,770,015)
CLASS B ............................................................................... (280,729) (207,815)
CLASS C ............................................................................... (79,775) (50,820)
CLASS Z ............................................................................... N/A N/A
-----------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ......................................................... (28,433,708) (20,166,184)
-----------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ...................................................... 2,155,436 8,788,904
REINVESTMENT OF DISTRIBUTIONS - CLASS A .................................................. 25,353,714 17,936,868
COST OF SHARES REDEEMED - CLASS A ........................................................ (30,241,404) (80,952,179)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ... (2,732,254) (54,226,407)
-----------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ...................................................... 109,458 416,556
REINVESTMENT OF DISTRIBUTIONS - CLASS B .................................................. 263,211 206,156
COST OF SHARES REDEEMED - CLASS B ........................................................ (827,357) (2,389,097)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B ... (454,688) (1,766,385)
-----------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ...................................................... 20,865 36,453
REINVESTMENT OF DISTRIBUTIONS - CLASS C .................................................. 66,256 47,779
COST OF SHARES REDEEMED - CLASS C ........................................................ (128,136) (354,053)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C ... (41,015) (269,821)
-----------------------------------
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
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - TOTAL ..... (3,227,957) (56,262,613)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ....................................................... (11,598,632) (16,546,906)
===================================
ENDING NET ASSETS ........................................................................... $ 347,569,884 $ 359,168,516
===================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
28
STATEMENTS OF CHANGES IN NET ASSETS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ..................................................................... $ 21,506,035 $ 26,644,657
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................................. (81,891) (202,317)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................................. 1,257,440 1,161,725
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...................... (142,407) 99,072
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. 1,033,142 1,058,480
-----------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................... 0 0
CLASS B ............................................................................... 0 0
CLASS C ............................................................................... 0 0
CLASS Z ............................................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................... (189,011) (292,187)
CLASS B ............................................................................... (279,060) (405,407)
CLASS C ............................................................................... (21,530) (38,466)
CLASS Z ............................................................................... N/A N/A
-----------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ......................................................... (489,601) (736,060)
-----------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ...................................................... 341,138 809,389
REINVESTMENT OF DISTRIBUTIONS - CLASS A .................................................. 181,030 280,054
COST OF SHARES REDEEMED - CLASS A ........................................................ (1,868,708) (3,509,645)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ... (1,346,540) (2,420,202)
-----------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ...................................................... 31,194 392,101
REINVESTMENT OF DISTRIBUTIONS - CLASS B .................................................. 268,191 392,381
COST OF SHARES REDEEMED - CLASS B ........................................................ (1,994,229) (3,318,019)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B ... (1,694,844) (2,533,537)
-----------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ...................................................... 4,251 54,851
REINVESTMENT OF DISTRIBUTIONS - CLASS C .................................................. 19,965 35,974
COST OF SHARES REDEEMED - CLASS C ........................................................ (128,553) (598,128)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C ... (104,337) (507,303)
-----------------------------------
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
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - TOTAL ..... (3,145,721) (5,461,042)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ....................................................... (2,602,180) (5,138,622)
===================================
ENDING NET ASSETS ........................................................................... $ 18,903,855 $ 21,506,035
===================================
SPECIALIZED TECHNOLOGY FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Beginning Net Assets ..................................................................... $ 219,109,933 $ 239,938,252
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ............................................................. (1,332,876) (3,043,840)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................................. 16,393,260 19,406,160
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...................... 1,939,570 (5,653,422)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. 16,999,954 10,708,898
-----------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................... 0 0
CLASS B ............................................................................... 0 0
CLASS C ............................................................................... 0 0
CLASS Z ............................................................................... 0 0
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................... 0 0
CLASS B ............................................................................... 0 0
CLASS C ............................................................................... 0 0
CLASS Z ............................................................................... 0 0
-----------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ......................................................... 0 0
-----------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ...................................................... 7,461,283 28,464,292
REINVESTMENT OF DISTRIBUTIONS - CLASS A .................................................. 0 0
COST OF SHARES REDEEMED - CLASS A ........................................................ (20,013,749) (37,727,443)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ... (12,552,466) (9,263,151)
-----------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ...................................................... 246,861 723,394
REINVESTMENT OF DISTRIBUTIONS - CLASS B .................................................. 0 0
COST OF SHARES REDEEMED - CLASS B ........................................................ (3,535,864) (6,621,474)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B ... (3,289,003) (5,898,080)
-----------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ...................................................... 92,532 655,065
REINVESTMENT OF DISTRIBUTIONS - CLASS C .................................................. 0 0
COST OF SHARES REDEEMED - CLASS C ........................................................ (833,107) (1,395,181)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C ... (740,575) (740,116)
-----------------------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ...................................................... 1,411,505 4,447,238
REINVESTMENT OF DISTRIBUTIONS - CLASS Z .................................................. 0 0
COST OF SHARES REDEEMED - CLASS Z ........................................................ (12,236,109) (20,083,108)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS Z ... (10,824,604) (15,635,870)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - TOTAL ..... (27,406,648) (31,537,217)
-----------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ....................................................... (10,406,694) (20,828,319)
===================================
ENDING NET ASSETS ........................................................................... $ 208,703,239 $ 219,109,933
===================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
29
WELLS FARGO ADVANTAGE SPECIALTY FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 528,142 2,231,558
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 6,272,740 4,691,884
SHARES REDEEMED - CLASS A .............................................................. (7,358,803) (20,540,254)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (557,921) (13,616,812)
-----------------------------------
SHARES SOLD - CLASS B .................................................................. 26,472 105,683
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 65,297 54,268
SHARES REDEEMED - CLASS B .............................................................. (203,956) (607,108)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... (112,187) (447,157)
-----------------------------------
SHARES SOLD - CLASS C .................................................................. 5,163 9,428
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 16,561 12,645
SHARES REDEEMED - CLASS C .............................................................. (32,027) (90,628)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... (10,303) (68,555)
-----------------------------------
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
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... (680,411) (14,132,524)
-----------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 280,927 $ 101,796
===================================
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
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ---------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 30,352 71,879
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 16,324 24,982
SHARES REDEEMED - CLASS A .............................................................. (165,286) (313,660)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (118,610) (216,799)
------------------------------------
SHARES SOLD - CLASS B .................................................................. 2,917 36,346
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 25,325 36,332
SHARES REDEEMED - CLASS B .............................................................. (185,472) (307,159)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... (157,230) (234,481)
------------------------------------
SHARES SOLD - CLASS C .................................................................. 400 5,032
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 1,884 3,328
SHARES REDEEMED - CLASS C .............................................................. (11,880) (55,058)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... (9,596) (46,698)
------------------------------------
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
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... (285,436) (497,978)
------------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ (81,891) $ 0
====================================
SPECIALIZED TECHNOLOGY FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- --------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................. 1,296,049 5,239,191
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................... 0 0
SHARES REDEEMED - CLASS A .............................................................. (3,464,009) (6,983,987)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A ................................... (2,167,960) (1,744,796)
-----------------------------------
SHARES SOLD - CLASS B .................................................................. 47,367 137,299
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................... 0 0
SHARES REDEEMED - CLASS B .............................................................. (643,115) (1,276,036)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B ................................... (595,748) (1,138,737)
-----------------------------------
SHARES SOLD - CLASS C .................................................................. 16,761 124,758
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................... 0 0
SHARES REDEEMED - CLASS C .............................................................. (150,419) (272,339)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C ................................... (133,658) (147,581)
-----------------------------------
SHARES SOLD - CLASS Z .................................................................. 244,553 816,132
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............................... 0 0
SHARES REDEEMED - CLASS Z .............................................................. (2,118,873) (3,699,085)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z ................................... (1,874,320) (2,882,953)
-----------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... (4,771,686) (5,914,067)
-----------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ (1,334,136) $ (1,260)
===================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
31
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 4.24 0.02 0.21 (0.02) (0.32)
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 3.80 0.05 0.61 (0.05) (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(6) 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)
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 4.23 0.01 0.21 (0.01) (0.32)
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 3.79 0.00 0.62 (0.01) (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(6) 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)
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 4.20 0.02 0.21 (0.01) (0.32)
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 3.77 0.01 0.61 (0.02) (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(6) 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)
SPECIALIZED HEALTH SCIENCES FUND
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 11.41 0.05 0.61 0.00 (0.26)
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 11.19 0.03 0.50 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 10.92 (0.11) 0.70 0.00 (0.26)
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 10.80 (0.18) 0.61 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
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 10.94 (0.12) 0.70 0.00 (0.26)
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 10.81 (0.30) 0.74 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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
32
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSET
REALIZED VALUE PER
GAINS SHARE
- ---------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- ---------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 4.13
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 4.24
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 3.80
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 3.70
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 3.83
OCTOBER 1, 2002(6) TO SEPTEMBER 30, 2003 ............ 0.00 $ 4.26
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... 0.00 $ 3.71
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 4.12
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 4.23
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 3.79
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 3.69
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 3.82
OCTOBER 1, 2002(6) TO SEPTEMBER 30, 2003 ............ 0.00 $ 4.25
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... 0.00 $ 3.71
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 4.10
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 4.20
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 3.77
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 3.67
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 3.80
OCTOBER 1, 2002(6) TO SEPTEMBER 30, 2003 ............ 0.00 $ 4.23
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... 0.00 $ 3.69
SPECIALIZED HEALTH SCIENCES FUND
- ---------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 11.81
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 11.41
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 11.19
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 11.35
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 10.49
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 9.51
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 7.81
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 11.25
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 10.92
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 10.80
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 10.96
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 10.21
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 9.32
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 7.72
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 11.26
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 10.94
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 10.81
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 10.97
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 10.22
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 9.33
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 7.73
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
--------------------------------------------------
NET
INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ----------------------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- ----------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 1.21% 1.59% (0.24)% 1.35%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 1.17% 1.58% (0.23)% 1.35%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.07)% 1.58% (0.23)% 1.35%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 1.15% 1.58% (0.23)% 1.35%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.71% 1.60% (0.25)% 1.35%
OCTOBER 1, 2002(6) TO SEPTEMBER 30, 2003 ............ 0.82% 1.59% (0.24)% 1.35%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... 0.98% 1.46% (0.12)% 1.34%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.48% 2.34% (0.24)% 2.10%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.45% 2.33% (0.23)% 2.10%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.81)% 2.33% (0.23)% 2.10%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.40% 2.33% (0.23)% 2.10%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (0.02)% 2.35% (0.25)% 2.10%
OCTOBER 1, 2002(6) TO SEPTEMBER 30, 2003 ............ 0.07% 2.45% (0.35)% 2.10%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... 0.17% 2.48% (0.35)% 2.13%
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.47% 2.34% (0.24)% 2.10%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.42% 2.33% (0.23)% 2.10%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.82)% 2.33% (0.23)% 2.10%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.40% 2.33% (0.23)% 2.10%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (0.04)% 2.35% (0.25)% 2.10%
OCTOBER 1, 2002(6) TO SEPTEMBER 30, 2003 ............ 0.07% 2.55% (0.45)% 2.10%
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... 0.17% 2.74% (0.61)% 2.13%
SPECIALIZED HEALTH SCIENCES FUND
- ----------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... (0.37)% 1.95% (0.30)% 1.65%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. (0.39)% 2.27% (0.62)% 1.65%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.93)% 2.00% (0.35)% 1.65%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... (0.41)% 1.96% (0.31)% 1.65%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (0.87)% 1.84% (0.19)% 1.65%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.02)% 2.25% (0.60)% 1.65%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.07)% 1.92% (0.27)% 1.65%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... (1.12)% 2.70% (0.30)% 2.40%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. (1.15)% 3.02% (0.62)% 2.40%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (1.68)% 2.75% (0.35)% 2.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... (1.16)% 2.71% (0.31)% 2.40%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (1.62)% 2.59% (0.19)% 2.40%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.77)% 3.06% (0.66)% 2.40%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.82)% 2.87% (0.47)% 2.40%
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... (1.12)% 2.70% (0.30)% 2.40%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. (1.16)% 3.00% (0.60)% 2.40%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (1.68)% 2.75% (0.35)% 2.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... (1.16)% 2.71% (0.31)% 2.40%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (1.63)% 2.59% (0.19)% 2.40%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.77)% 3.18% (0.78)% 2.40%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.82)% 3.03% (0.63)% 2.40%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(5) (000'S OMITTED)
- -------------------------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND
- -------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 5.67% 7% $ 343,325
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 17.83% 21% $ 354,300
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 2.70% 1% $ 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(6) TO SEPTEMBER 30, 2003 ............ 16.12% 356% $ 512,466
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... (12.95)% 187% $ 509,614
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 5.28% 7% $ 3,260
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 16.96% 21% $ 3,816
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 2.71% 1% $ 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(6) TO SEPTEMBER 30, 2003 ............ 15.21% 356% $ 20,465
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... (13.51)% 187% $ 20,986
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 5.57% 7% $ 985
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 16.79% 21% $ 1,053
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 2.72% 1% $ 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(6) TO SEPTEMBER 30, 2003 ............ 15.30% 356% $ 1,937
JANUARY 1, 2002 TO SEPTEMBER 30, 2002 ............... (13.77)% 187% $ 1,793
SPECIALIZED HEALTH SCIENCES FUND
- -------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 5.84% 139% $ 7,423
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 4.81% 348% $ 8,531
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (1.41)% 9% $ 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 5.46% 139% $ 10,642
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 4.04% 348% $ 12,056
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (1.46)% 9% $ 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
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 5.45% 139% $ 839
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 4.13% 348% $ 919
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (1.46)% 9% $ 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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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 TECHNOLOGY FUND
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 5.45 (0.04) 0.48 0.00 0.00
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 5.20 (0.07) 0.32 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 5.20 (0.08) 0.48 0.00 0.00
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 5.00 (0.14) 0.34 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
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 5.19 (0.08) 0.48 0.00 0.00
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 4.99 (0.12) 0.32 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
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 5.44 (0.03) 0.46 0.00 0.00
OCTOBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 5.20 (0.08) 0.32 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.
34
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSET
REALIZED VALUE PER
GAINS SHARE
- ---------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- ---------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 5.89
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 5.45
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 5.20
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 5.21
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 4.13
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 3.93
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 2.23
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 5.60
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 5.20
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 5.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 5.02
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 4.01
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 3.85
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 2.19
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 5.59
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 5.19
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 4.99
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... 0.00 $ 5.01
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... 0.00 $ 4.00
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... 0.00 $ 3.84
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... 0.00 $ 2.19
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 0.00 $ 5.87
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 0.00 $ 5.44
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. 0.00 $ 5.20
APRIL 11, 2005(3) TO SEPTEMBER 30, 2005 ............. 0.00 $ 5.21
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
--------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ----------------------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- ----------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... (1.07)% 1.79% (0.04)% 1.75%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. (1.13)% 1.83% (0.08)% 1.75%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (1.30)% 1.78% (0.03)% 1.75%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... (1.33)% 1.80% (0.05)% 1.75%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (1.44)% 1.80% (0.05)% 1.75%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (1.45)% 1.98% (0.23)% 1.75%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (1.37)% 2.47% (0.72)% 1.75%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... (1.82)% 2.54% (0.04)% 2.50%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. (1.89)% 2.58% (0.08)% 2.50%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (2.05)% 2.53% (0.03)% 2.50%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... (2.09)% 2.55% (0.05)% 2.50%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (2.19)% 2.55% (0.05)% 2.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (2.10)% 3.08% (0.58)% 2.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (2.12)% 3.46% (0.96)% 2.50%
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... (1.83)% 2.54% (0.04)% 2.50%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. (1.88)% 2.58% (0.08)% 2.50%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (2.05)% 2.53% (0.03)% 2.50%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............... (2.09)% 2.55% (0.05)% 2.50%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............... (2.19)% 2.54% (0.04)% 2.50%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ............... (2.10)% 2.91% (0.41)% 2.50%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ............... (2.12)% 3.16% (0.66)% 2.50%
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... (1.22)% 1.96% (0.06)% 1.90%
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. (1.30)% 2.00% (0.10)% 1.90%
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (1.45)% 1.95% (0.05)% 1.90%
APRIL 11, 2005(3) TO SEPTEMBER 30, 2005 ............. (1.37)% 1.95% (0.05)% 1.90%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(5) (000'S OMITTED)
- --------------------------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 8.27% 89% $ 106,308
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 4.81% 279% $ 110,207
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.19)% 29% $ 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 7.69% 89% $ 22,393
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 4.00% 279% $ 23,903
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.40)% 29% $ 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
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 7.92% 89% $ 4,821
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 4.01% 279% $ 5,173
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.40)% 29% $ 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
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ...... 8.10% 89% $ 75,181
OCTOBER 1, 2005 TO OCTOBER 31, 2006 ................. 4.62% 279% $ 79,827
OCTOBER 1, 2005(4) TO OCTOBER 31, 2005 .............. (0.19)% 29% $ 91,285
APRIL 11, 2005(3) TO SEPTEMBER 30, 2005 ............. 14.00% 270% $ 92,233
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
35
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) 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.
(6) The Fund changed its fiscal year-end from December 31 to September 30.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
36
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, 2007, was comprised of 109 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.
The separate classes of shares offered by each Fund differ principally in
applicable sales charges and distribution, shareholder servicing and
administration fees. Shareholders of each class bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses of a
Fund, earn income from the portfolio, and are allocated unrealized gains and
losses pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains and
losses are allocated to each class pro rata based upon the net assets of each
class on the date realized. Differences in per share dividend rates generally
result from the relative weightings of pro rata income and realized gain
allocations and from differences in separate class expenses, including
distribution, shareholder servicing, and administration fees.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following significant accounting policies, which are consistently
followed in the preparation of the financial statements of the Trust, are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Certain Funds of the Trust may invest a substantial portion of their
assets in an industry, sector or foreign country as is discussed in the
Performance Highlights for those Funds. Such Funds may be more affected by
changes in that industry, sector or foreign country than they would be absent
the concentration of investments.
In the normal course of business, the Trust may enter into contracts that
provide certain indemnifications. The Trust's maximum exposure under these
arrangements is dependent on future claims that may be made against the Funds
and, therefore, cannot be estimated; however, based on experience, the risk of
loss from such claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. ("NASDAQ") are valued at the NASDAQ Official Closing
Price ("NOCP"), and if no NOCP is available, then at the last reported sales
price. If no sales price is shown on the NASDAQ, the bid price will be used. In
the absence of any sale of securities listed on the NASDAQ, and in the case of
other securities, including U.S. Government obligations, but excluding debt
securities maturing in 60 days or less, the price will be deemed "stale" and the
valuations will be determined in accordance with the 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 established in good
faith and 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.
37
WELLS FARGO ADVANTAGE SPECIALTY FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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
distributions the earnings and profits distributed to shareholders on the
redemption of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under Subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of substantially all of its investment
company taxable income and any net realized capital gains (after reduction for
capital loss carryforwards) sufficient to relieve it from all, or substantially
all, federal income taxes. Accordingly, no provision for federal income taxes
was required at April 30, 2007.
At October 31, 2006, the Funds' prior fiscal year end, net capital loss
carryforwards, which are available to offset future net realized capital gains,
were:
Capital Loss
Fund Expiration Year Carryforwards
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 2007 $ 3,831,373
2008 111,678,195
2009 49,977,485
2010 10,167,420
2011 445,585
- --------------------------------------------------------------------------------
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,
2007, 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
38
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
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, 2007, 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, 2007, if any, and their related market values and proceeds are set
forth in the Schedule of Investments Sold Short.
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, 2007, 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.
39
WELLS FARGO ADVANTAGE SPECIALTY FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Written options transactions during the six-month period ended April 30,
2007, were as follows:
Specialized Health Sciences Fund
---------------------------------
Premium
Call Options Written Contracts Received
- -----------------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD (131) $ (36,683)
- -----------------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN (2,135) (225,733)
- -----------------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS 2,122 248,054
- -----------------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED 104 8,265
- -----------------------------------------------------------------------------------------------------------------
OPTIONS SPLIT 0 0
- -----------------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD (40) (6,097)
Specialized Health Sciences Fund Specialized Technology Fund
-------------------------------- ----------------------------
Premium Premium
Put Options Written Contracts Received Contracts Received
- -----------------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 0 $ 0 0 $ 0
- -----------------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN (178) (10,502) (325) (104,653)
- -----------------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS 178 10,502 325 104,653
- -----------------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------
OPTIONS SPLIT 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 0 0 0 0
3. EXPENSES
- --------------------------------------------------------------------------------
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). Funds Management 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
- --------------------------------------------------------------------------------------------------------------------------
40
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) WELLS FARGO ADVANTAGE SPECIALTY 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:
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
- --------------------------------------------------------------------------------
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 six-month period ended April 30, 2007, shareholder servicing fees
paid were as follows:
Fund Class A Class B Class C Class Z
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND $435,975 $ 4,531 $1,284 N/A
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND 9,979 13,845 1,087 N/A
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 138,012 29,430 6,441 $98,086
- --------------------------------------------------------------------------------
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.
For the six-month period ended April 30, 2007, 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.
41
WELLS FARGO ADVANTAGE SPECIALTY FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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, 2007, 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
contractually committed to waive fees and/or reimburse expenses to the extent
necessary to maintain a certain net operating expense ratio for the Fund(s). Net
operating expense ratios in effect for the six-month period ended April 30, 2007
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%
- --------------------------------------------------------------------------------
* The Fund's adviser has committed to waive fees through February 29, 2008.
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 six-month period ended April 30, 2007, were as
follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
SPECIALIZED FINANCIAL SERVICES FUND $ 25,369,127 $ 56,519,408
- --------------------------------------------------------------------------------
SPECIALIZED HEALTH SCIENCES FUND 27,276,549 29,900,459
- --------------------------------------------------------------------------------
SPECIALIZED TECHNOLOGY FUND 185,624,113 206,284,204
- --------------------------------------------------------------------------------
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 six-month period ended April 30,
2007, there were no borrowings by any of the Funds under this 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.
7. NEW ACCOUNTING PRONOUNCEMENTS
- --------------------------------------------------------------------------------
In June 2006, the Financial Accounting Standards Board ("FASB") issued
FASB Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income
Taxes." This standard defines the threshold for recognizing the benefits of
tax-return positions in the financial statements as "more-likely-than-not" to be
sustained by the taxing authority and requires measurement of a tax position
meeting the more-likely-than-not criterion, based on the largest benefit that is
more than 50 percent likely to be realized. FIN 48 is effective as of the
beginning of the first fiscal year beginning after December 15, 2006 (January 1,
2007 for calendar-year companies), with early application permitted if no
interim financial statements have been issued. In December 2006, the SEC issued
a letter allowing for an implementation delay for funds until the last NAV
calculation in the first required reporting period for fiscal years beginning
after December 15, 2006. As of April 30, 2007, Funds Management does not believe
the impact of the adoption of FIN 48 will be material to the financial
statements.
In September 2006, the FASB issued Statement on Financial Accounting
Standards ("SFAS") No. 157, "Fair Value Measurements." This standard establishes
a single authoritative definition of fair value, sets out a framework for
measuring fair value and requires additional disclosures about fair value
measurements. SFAS No. 157 applies to fair value measurements already required
or permitted by existing standards. SFAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007 and interim
periods within those fiscal years. The changes to current generally accepted
accounting principles from the application of this Statement relate to the
definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of April 30, 2007, Funds
Management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts, however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements on changes in net assets for the period.
42
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 1-800-222-8222, visiting our Web site
at www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at
www.sec.gov. Information regarding how the Funds voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge on the Funds' Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS or by 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
(except Money Market Funds) 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 144 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 Wake Forest University, None
64 Calloway School of Business
and Accountancy - The Thomas
Goho Chair of Finance since
January 2006. Associate
Professor of Finance from
1999-2005.
- ----------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO and Co-Founder None
64 (Chairman since 2005) of Crystal Geyser Water
(Lead Trustee since Company and President of
2001) Crystal Geyser Roxane Water
Company.
- ----------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, None
73 President of Richard M. Leach
Associates (a financial
consulting firm).
- ----------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and None
54 Risk Management, Wharton
School, University of
Pennsylvania. Director of the
Boettner Center on Pensions
and Retirement Research.
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
55 public relations firm of
Himle-Horner and Senior
Fellow at the Humphrey
Institute, Minneapolis,
Minnesota (a public policy
organization).
43
WELLS FARGO ADVANTAGE SPECIALTY FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES (continued)
- ----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
66 Willeke & Daniels.
INTERESTED TRUSTEE***
- ----------------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
62 Developer. Prior thereto,
Chairman of Whitepoint
Capital, LLC until 2004.
- ----------------------------------------------------------------------------------------------------------
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
48 Wells Fargo Bank, N.A. and
President of Wells Fargo
Funds Management, LLC since
2003. Senior Vice President
and Chief Administrative
Officer of Wells Fargo Funds
Management, LLC from 2001 to
2003.
- ----------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000; Senior Vice President and None
46 Chief Legal Counsel Secretary of Wells Fargo
since 2003 Funds Management, LLC since
2001. Vice President and
Managing Senior Counsel of
Wells Fargo Bank, N.A. since
1996.
- ----------------------------------------------------------------------------------------------------------
A. Erdem Cimen**** Treasurer, since 2006 Vice President of Financial None
33 Operations for Wells Fargo
Funds Management, LLC since
2006. From 2001 to 2006, Vice
President of Wells Fargo
Bank, N.A. and Vice President
of Wells Fargo Bank, N.A.
Auto Finance Group. Vice
President of Port- folio Risk
Management for Wells Fargo
Bank, N.A. Auto Finance Group
from 2004 to 2006.
- ----------------------------------------------------------------------------------------------------------
Dorothy A. Peters Chief Compliance Chief Compliance Officer of None
45 Officer, since 2004 Wells Fargo Funds Management,
LLC since 2004. Chief
Compliance Officer for Wells
Fargo Funds Management, LLC
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, 2007, 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.
**** As of May 8, 2007, Stephen W. Leonhardt replaced A. Erdem Cimen as
Treasurer of the Funds.
44
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUB-ADVISORY
AGREEMENTS:
SPECIALIZED FINANCIAL SERVICES FUND, SPECIALIZED HEALTH SCIENCES FUND AND
SPECIALIZED TECHNOLOGY FUND
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and sub-advisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will annually review and consider the continuation of
the investment advisory and sub-advisory agreements. In this regard, the Board
reviewed and re-approved, during the six months covered by this report: (i) an
investment advisory agreement with Wells Fargo Funds Management, LLC ("Funds
Management") for the Specialized Financial Services Fund, Specialized Health
Sciences Fund and Specialized Technology Fund (the "Funds"); (ii) an investment
sub-advisory agreement with Wells Capital Management Incorporated ("Wells
Capital Management") for the Specialized Financial Services Fund; and (iii) an
investment sub-advisory agreement with RCM Capital Management ("RCM") for the
Specialized Health Sciences Fund and Specialized Technology Fund. The investment
advisory agreement with Funds Management and the investment sub-advisory
agreements with Wells Capital Management and RCM (the "Sub-Advisers") are
collectively referred to as the "Advisory Agreements."
More specifically, at a meeting held on March 30, 2007, the Board,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and the Sub-Advisers and the continuation of
the Advisory Agreements. Prior to the March 30, 2007, meeting, the Board,
including the Independent Trustees, met in person and telephonically a number of
times, both with Funds Management and in private sessions, for discussions about
these continuations and approvals. The Independent Trustees were assisted in
their evaluation of the Advisory Agreements by independent legal counsel, from
whom they received separate legal advice and with whom they met separately from
Funds Management.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Board received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and the Sub-Advisers under the Advisory Agreements. The Board also
received and considered information provided in response to a detailed set of
requests submitted by the Independent Trustees' independent legal counsel,
including, among other things, information about the background and experience
of senior management and the expertise of, and amount of attention devoted to
the Funds by, investment personnel of Funds Management and the Sub-Advisers. In
this regard, the Board reviewed the qualifications, backgrounds and
responsibilities of the portfolio managers primarily responsible for day-to-day
portfolio management services for the Funds.
The Board evaluated the ability of Funds Management and the Sub-Advisers,
based on their respective resources, reputations and other attributes, to
attract and retain highly qualified investment professionals, including
research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance
records of Funds Management and the Sub-Advisers. In addition, the Board took
into account the administrative services provided to the Funds by Funds
Management and its affiliates. In considering these matters, the Board
considered not only the specific information presented in connection with the
meeting, but also the knowledge gained over the course of interacting with Funds
Management about various topics, including Funds Management's oversight of
service providers, such as the Sub-Advisers.
Based on the above factors, together with those referenced below, the
Board concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and the Sub-Advisers.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Board considered the performance results for each of the Funds over
various time periods ended December 31, 2006. The Board also considered these
results in comparison to the median performance results of the group of funds
that was determined by Lipper Inc. ("Lipper") to be the most similar to a given
Fund (the "Peer Group") and to the median performance of a broader universe of
relevant funds as determined by Lipper (the "Universe"), as well as to each
Fund's benchmark index. Lipper is an independent provider of investment company
data. The Board was provided with a description of the methodology used by
Lipper to select the mutual funds in each Fund's Peer Group and Universe.
The Board noted that the performance of the Specialized Technology Fund
was better than, or not appreciably below, the median performance of its Peer
Group for all time periods. The Board then noted that the performance of the
Specialized Financial Services Fund was lower than the median performance of its
Peer Group for most time periods, and required further review. Upon further
review, the Board noted that there had been a portfolio management change at the
end of 2004 and that performance since then had gradually improved, with the
Fund's one-year performance better
45
WELLS FARGO ADVANTAGE SPECIALTY FUNDS OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
than the median performance of its Peer Group. The Board also noted that the
performance of the Specialized Health Sciences Fund was lower than the median
performance of its Peer Group for all time periods and required further review.
Upon further review, the Board noted that there had been a portfolio manager
change for the Specialized Health Sciences Fund at the end of 2004, and that
since then the Fund's performance had gradually improved. The Board requested
continued reports on the performance of the Specialized Financial Services Fund
and Specialized Health Sciences Fund.
The Board received and considered information regarding each Fund's net
operating expense ratio and its various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The
Board also considered comparisons of these fees to the expense information for
each Fund's Peer Group, which comparative data was provided by Lipper. The Board
noted that the net operating expense ratios for each Fund were lower than, or
not appreciably higher than, its Peer Group's median net operating expense
ratios. The Board also noted and considered Funds Management's recommendation to
reduce the net operating expense ratio for the Specialized Technology Fund.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUB-ADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Board reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services
(the "Advisory Agreement Rates"), both on a stand-alone basis and on a combined
basis with the Funds' administration fee rates. The Board took into account the
separate administrative services covered by the administration fee rates. The
Board also reviewed and considered the contractual investment sub-advisory fee
rates payable by Funds Management to the Sub-Advisers for investment
sub-advisory services (the "Sub-Advisory Agreement Rates"). In addition, the
Board reviewed and considered the existing fee waiver/cap arrangements
applicable to the Advisory Agreement Rates and considered the Advisory Agreement
Rates after taking the waivers/caps into account (the "Net Advisory Rates").
The Board received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in each
Fund's Peer Group. The Board noted that the Advisory Agreement Rates and the Net
Advisory Rates for each Fund were lower than, or not appreciably higher than,
the median rates of each Fund's respective Peer Group. In addition, the Board
concluded that the combined investment advisory/administration fee rates for the
Funds (before and after waivers/caps and/or expense reimbursements) were
reasonable in relation to each Fund's respective Peer Group, and reasonable in
relation to the services provided. The Boards also considered and noted Funds
Management's recommendation to reduce certain administration fees for the
Specialized Technology Fund in coming to its conclusion.
The Board also reviewed and considered the Sub-Advisory Agreement Rates
and concluded that the Sub-Advisory Agreement Rates were fair and equitable,
based on its consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Board received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and the Net Advisory
Rates, as well as an analysis of the profitability to other Wells Fargo
businesses of providing services to the Funds. The Board concluded that, in
light of the costs of providing investment management and other services to the
Funds, the profits and other ancillary benefits that Funds Management and its
affiliates received with regard to providing these services to the Funds were
not unreasonable.
The Board did not consider a separate profitability analysis of Wells
Capital Management, as its separate profitability from its relationship with the
Specialized Financial Services Fund was not a material factor in determining
whether to renew the agreement. The Board did not consider a separate
profitability analysis of RCM, which is not affiliated with Funds Management.
The Board considered that the sub-advisory fees paid to RCM had been negotiated
by Funds Management on an arm's length basis and that RCM's separate
profitability from its relationship with the Specialized Health Sciences Fund
and Specialized Technology Fund was not a material factor in determining
whether to renew the agreement.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Board received and considered general information regarding whether
there have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale, and
whether there is potential for realization of any further economies of scale for
the Funds. The Board also considered information provided by Funds Management in
a special presentation on advisory fee breakpoints at the February 2007 board
meeting. The Board acknowledged the inherent limitations of any analysis of an
investment adviser's economies of scale and of any attempt
46
OTHER INFORMATION (UNAUDITED) WELLS FARGO ADVANTAGE SPECIALTY FUNDS
- --------------------------------------------------------------------------------
to correlate breakpoints with such economies, stemming largely from the Board's
understanding that economies of scale are realized, if at all, by an investment
adviser across a variety of products and services, not just with respect to a
single fund. The Board concluded that any actual or potential economies of scale
are, or will be, shared reasonably with Fund shareholders, most particularly
through Advisory Agreement Rate breakpoints and waivers/caps and/or expense
reimbursements applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Board also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trust, and those offered by the Sub-Advisers to other
clients. The Board concluded that the Advisory Agreement Rates, the Sub-Advisory
Agreement Rates and the Net Advisory Rates were within a reasonable range of the
fee rates offered to others by Funds Management and the Sub-Advisers, giving
effect to differences in services covered by such fee rates.
OTHER BENEFITS TO FUNDS MANAGEMENT AND THE SUB-ADVISERS
- --------------------------------------------------------------------------------
The Board received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
and the Sub-Advisers as a result of their relationship with the Funds. Such
benefits could include, among others, benefits directly attributable to the
relationship of Funds Management and the Sub-Advisers with the Funds and
benefits potentially derived from an increase in Funds Management's and the
Sub-Advisers' business as a result of their relationship with the Funds (such as
the ability to market to shareholders other financial products offered by Funds
Management and its affiliates or the Sub-Advisers and their affiliates).
The Board also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture commission costs, and the controls applicable to
brokerage allocation procedures. The Board also reviewed Funds Management's and
the Sub-Advisers' methods for allocating portfolio investment opportunities
among the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Board also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares are offered and
sold. The Board noted that the Funds are part of one of the few fund families
that have both direct-to-fund and intermediary distribution.
As discussed above, the Board reviews detailed materials received from
Funds Management and the Sub-Advisers annually as part of the re-approval
process under Section 15(c) of the 1940 Act. The Board also reviews and assesses
the quality of the services that the Funds receive throughout the year. In this
regard, the Board has reviewed reports of Funds Management and the Sub-Advisers
at each of its quarterly meetings, which include, among other things, a
portfolio review and fund performance reports. In addition, the Board confers
with portfolio managers at various times throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Board
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the continuation of the Advisory Agreements for
an additional one-year period.
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 Depositary Receipt
AMBAC --American Municipal Bond Assurance Corporation
AMT --Alternative Minimum Tax
ARM --Adjustable Rate Mortgages
BART --Bay Area Rapid Transit
CDA --Community Development Authority
CDO --Collateralized Debt Obligation
CDSC --Contingent Deferred Sales Charge
CGIC --Capital Guaranty Insurance Company
CGY --Capital Guaranty Corporation
COP --Certificate of Participation
CP --Commercial Paper
CTF --Common Trust Fund
DW&P --Department of Water & Power
DWR --Department of Water Resources
ECFA --Educational & Cultural Facilities Authority
EDFA --Economic Development Finance Authority
ETET --Eagle Tax-Exempt Trust
FFCB --Federal Farm Credit Bank
FGIC --Financial Guaranty Insurance Corporation
FHA --Federal Housing Authority
FHAG --Federal Housing Agency
FHLB --Federal Home Loan Bank
FHLMC --Federal Home Loan Mortgage Corporation
FNMA --Federal National Mortgage Association
GDR --Global Depositary Receipt
GNMA --Government National Mortgage Association
GO --General Obligation
HCFR --Healthcare Facilities Revenue
HEFA --Health & Educational Facilities Authority
HEFAR --Higher Education Facilities Authority Revenue
HFA --Housing Finance Authority
HFFA --Health Facilities Financing Authority
IDA --Industrial Development Authority
IDAG --Industrial Development Agency
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
MTN --Medium Term Note
MUD --Municipal Utility District
PCFA --Pollution Control Finance Authority
PCR --Pollution Control Revenue
PFA --Public Finance Authority
PFFA --Public Facilities Financing Authority
plc --Public Limited Company
PSFG --Public School Fund Guaranty
R&D --Research & Development
RDA --Redevelopment Authority
RDFA --Redevelopment Finance Authority
REITS --Real Estate Investment Trusts
SFHR --Single Family Housing Revenue
SFMR --Single Family Mortgage Revenue
SLMA --Student Loan Marketing Association
TBA --To Be Announced
TRAN --Tax Revenue Anticipation Notes
USD --Unified School District
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
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF WELLS FARGO ADVANTAGE FUNDS. IF THIS
REPORT IS USED FOR PROMOTIONAL PURPOSES, DISTRIBUTION OF THE REPORT MUST BE
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR A PROSPECTUS CONTAINING
MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-222-8222
OR VISIT THE FUNDS' WEB SITE AT WWW.WELLSFARGO.COM/ADVANTAGEFUNDS. PLEASE
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
INVESTMENT CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION ABOUT WELLS
FARGO ADVANTAGE FUNDS CAN BE FOUND IN THE CURRENT PROSPECTUS. READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates of Wells Fargo & Company provide
subadvisory and other services for the Funds. The Funds are distributed by WELLS
FARGO FUNDS DISTRIBUTOR, LLC, Member NASD/SIPC, an affiliate of Wells Fargo &
Company.
-----------------------------------------------------
NOT FDIC INSURED o NO BANK GUARANTEE o MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2007 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
104312 06-07
SASFLD-SAR113 04-07
----------------
[LOGO] WELLS ADVANTAGE
FARGO FUNDS
----------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
Semi-Annual Report
APRIL 30, 2007
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 ............................................................. 14
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
C&B Mid Cap Value Fund ................................................. 17
Common Stock Fund ...................................................... 22
Mid Cap Growth Fund .................................................... 28
Small Cap Growth Fund .................................................. 34
Small Cap Opportunities Fund ........................................... 40
Small Cap Value Fund ................................................... 48
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 56
Statements of Operations ............................................... 58
Statements of Changes in Net Assets .................................... 60
Financial Highlights ................................................... 68
Notes to Financial Highlights .......................................... 76
Notes to Financial Statements ............................................. 77
- --------------------------------------------------------------------------------
Other Information ......................................................... 85
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 90
- --------------------------------------------------------------------------------
-----------------------------------------------------
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,
In this semi-annual report for the WELLS FARGO ADVANTAGE SMALL AND MID CAP
FUNDS, which covers the six-month period that ended April 30, 2007, you may
notice a few changes if you were a shareholder last year at this time. We have
abbreviated the content in the semi-annual reports to include fund and benchmark
performance, sector distribution percentages, a list of the ten largest holdings
in each Fund, along with the usual information in the financial section.
We will continue to provide you with a general review of the economy and
stock market in our letter to you. In the next annual report, which will cover
the 12-month period ending October 31, 2007, we will also include the portfolio
manager's commentary and a chart showing the growth of a $10,000 investment.
REVIEW OF THE U.S. ECONOMY AND EQUITY MARKETS
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of slowing during the six-month
period. Real Gross Domestic Product (GDP) grew at a rate of 2.5% for the fourth
quarter of 2006 and the early estimate for the first quarter of 2007 was 1.3%.
During the last 15 years, the GDP grew at an average annual rate of 3.2%.
A significant decline in housing activity continued to tug at the U.S.
economy. 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 that had
previously seen rapid price appreciation. Sales of existing single-family homes
and new single-family homes began to stabilize in March and April of 2007.
Although homebuilders were still reporting a surplus of unsold units at the end
of the period, cancellations had stopped increasing. Areas of the country that
missed the rapid appreciation in housing prices began reporting increased demand
for homes.
Household spending was sustained by healthy labor markets, solid growth in
household incomes, and gains in net worth stemming from the strength in stock
prices. However, on February 27, 2007, the global equity market experienced a
significant correction triggered by an approximately 9% drop in China's stock
market. The Dow Jones Industrial Average (DJIA) lost 3.3% of its value on the
same day. The U.S. equity market continued to struggle in early March. Then on
March 21, 2007, the Fed announced its intention to keep the Federal funds rate
at 5.25%. In addition, the Fed left out its previous statement that further
interest-rate increases might be needed. The equity market rallied on the Fed's
news, and in April the DJIA reported its best monthly performance in over four
years, ending at 13,062 on April 30, significantly higher than the 12,216
reported after the market adjustment on February 27.
Corporations continued to find ways to spend excess cash, with much of
this spending concentrated on acquisitions, mergers, and stock buybacks. A
buyback is a method used by publicly held companies to repurchase outstanding
shares from shareholders. Buybacks allow a company to invest in itself and to
reduce the number of shares outstanding in the market. This can benefit
shareholders by increasing the ownership stake of each share.
These factors and strong global growth helped to drive the U.S. equity
market during the period. U.S. companies that generate revenue from exports
continued to benefit from overseas sales as a result of a weaker U.S. dollar;
this also helped to keep domestic products competitive in the global
marketplace.
PLANNING AHEAD
- --------------------------------------------------------------------------------
The uncertainty of future Fed action and other domestic and global market
forces supports our belief that successful investing includes a balanced
approach of owning a diversified portfolio and keeping a long-term perspective.
While diversification may not prevent losses in a downturn, it may help reduce
them and provide you with one way of managing risk. Our diverse family of more
than 120 mutual funds may also help. Each Fund is managed according to a
disciplined approach to investing that features the strategic thinking of
portfolio managers chosen for their in-depth knowledge and methodology. We
believe that our insistence on seeking skilled investment managers--our
subadvisers--who share our dedication to pursuing consistent long-term results
offers you a way to navigate changing market conditions and move forward with
your financial planning.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS. We appreciate your
confidence in us. Through each market cycle, we are committed to helping you
meet your financial needs. If you have any questions about your investment,
please contact your investment professional or call us at 1-800-222-8222. You
may also want to 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 (current income and capital appreciation), consistent
with minimizing risk to principal.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Cooke & Bieler, LP
PORTFOLIO MANAGERS FUND INCEPTION
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
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge Gross Net
--------------------------------------- --------------------------------------- Expense Expense
6-Months* 1-Year 5-Year Life of Fund 6-Months* 1-Year 5-Year Life of Fund Ratio 2 Ratio 3
- --------------------------------------------------------------------------------------------------------------------------
Class A 4.47 12.25 11.23 13.81 10.84 19.10 12.56 14.55 1.40% 1.40%
- --------------------------------------------------------------------------------------------------------------------------
Class B 5.44 13.18 11.48 13.70 10.44 18.18 11.74 13.70 2.15% 2.15%
- --------------------------------------------------------------------------------------------------------------------------
Class C 9.44 17.22 11.75 13.71 10.44 18.22 11.75 13.71 2.15% 2.15%
- --------------------------------------------------------------------------------------------------------------------------
Class D 10.94 19.24 12.65 14.59 1.40% 1.25%
- --------------------------------------------------------------------------------------------------------------------------
Administrator Class 10.97 19.30 12.71 14.63 1.22% 1.15%
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class 11.08 19.65 12.86 14.71 0.95% 0.90%
- --------------------------------------------------------------------------------------------------------------------------
Benchmark
- --------------------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Value Index 4 12.78 19.66 15.95 11.92
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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. CLASS D,
ADMINISTRATOR CLASS AND INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT A FRONT-END
SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES.THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. CONSULT THE FUND'S
PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Corinthian Colleges Incorporated 4.26%
- --------------------------------------------------------------------------------
Entegris Incorporated 3.84%
- --------------------------------------------------------------------------------
Catalina Marketing Corporation 3.64%
- --------------------------------------------------------------------------------
Hain Celestial Group Incorporated 3.53%
- --------------------------------------------------------------------------------
International Flavors & Fragrances Incorporated 3.17%
- --------------------------------------------------------------------------------
Diebold Incorporated 3.03%
- --------------------------------------------------------------------------------
Pall Corporation 3.01%
- --------------------------------------------------------------------------------
Dollar General Corporation 2.94%
- --------------------------------------------------------------------------------
Dover Corporation 2.82%
- --------------------------------------------------------------------------------
MoneyGram International Incorporated 2.81%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (23%)
Consumer Staples (8%)
Energy (1%)
Financials (17%)
Health Care (8%)
Industrials (19%)
Information Technology (19%)
Materials (5%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Class A, Class B and Class C
shares reflects the performance of the unnamed share class of the C&B Mid Cap
Value Portfolio, the predecessor fund, adjusted to reflect Class A, Class B and
Class C sales charges and expenses, as applicable. Prior to April 11, 2005, the
Administrator Class was named the Institutional Class and the Institutional
Class was named the Select Class. Performance shown prior to the inception of
the Administrator Class and Institutional Class shares reflects the performance
of the unnamed share class of the predecessor fund, and includes expenses that
are not applicable to and are higher than those of the Administrator Class and
Institutional Class shares. Performance shown prior to July 26, 2004 for the
Class D shares reflects the performance of the unnamed share class of the
predecessor fund.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell Midcap(R) Value Index measures the performance of those Russell
Midcap(R) companies with lower price-to-book ratios and lower forecasted growth
values. The stocks are also members of the Russell 1000(R) Value Index. You
cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGERS FUND INCEPTION
Ann M. Miletti 12/29/1989
Richard T. Weiss
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge Gross Net
---------------------------------- ---------------------------------- Expense Expense
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year Ratio 2 Ratio 3
- --------------------------------------------------------------------------------------------------------------------
Class A 6.25 7.18 10.40 10.80 12.71 13.71 11.71 11.46 1.34% 1.31%
- --------------------------------------------------------------------------------------------------------------------
Class B 7.27 7.82 10.58 10.93 12.27 12.82 10.85 10.93 2.09% 2.06%
- --------------------------------------------------------------------------------------------------------------------
Class C 11.28 11.83 10.84 10.76 12.28 12.83 10.84 10.76 2.09% 2.06%
- --------------------------------------------------------------------------------------------------------------------
Class Z 12.70 13.68 11.85 11.73 1.51% 1.29%
- --------------------------------------------------------------------------------------------------------------------
Benchmark
- --------------------------------------------------------------------------------------------------------------------
Russell 2500(TM) Index 4 10.17 10.63 12.77 12.17
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. CERTAIN INVESTMENT
STRATEGIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). THIS FUND IS EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE
FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (APRIL 30, 2007)
- --------------------------------------------------------------------------------
EOG Resources Incorporated 2.32%
- --------------------------------------------------------------------------------
Apache Corporation 2.26%
- --------------------------------------------------------------------------------
Noble Corporation 2.24%
- --------------------------------------------------------------------------------
Smith International Incorporated 1.92%
- --------------------------------------------------------------------------------
Cameron International Corporation 1.66%
- --------------------------------------------------------------------------------
Red Hat Incorporated 1.57%
- --------------------------------------------------------------------------------
MedImmune Incorporated 1.56%
- --------------------------------------------------------------------------------
Altera Corporation 1.54%
- --------------------------------------------------------------------------------
Activision Incorporated 1.53%
- --------------------------------------------------------------------------------
SUPERVALU Incorporated 1.49%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (19%)
Consumer Staples (8%)
Energy (12%)
Financials (10%)
Health Care (14%)
Industrials (10%)
Information Technology (21%)
Materials (5%)
Telecommunication Services (1%)
- --------------------------------------------------------------------------------
1 Performance shown prior to April 11, 2005 for the Class A, Class B and Class C
shares reflects the performance of the Class A, Class B and Class C shares,
respectively, of the Strong Advisor Common Stock Fund, the predecessor fund.
Performance shown prior to the inception of the Class A, Class B and Class C
shares reflects the performance of the Class Z shares of the predecessor fund,
adjusted to reflect Class A, Class B and Class C sales charges and expenses, as
applicable. Performance shown prior to April 11, 2005 for the Class Z shares
reflects the performance of the Class Z shares of the predecessor fund.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell 2500(TM) Index measures performance of the 2,500 smallest
companies in the Russell 3000(R) Index, which represents approximately 16% of
the total market capitalization of the Russell 3000(R) Index. You cannot invest
directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGERS FUND INCEPTION
Jerome "Cam" Philpott, CFA 12/30/1994
Stuart Roberts
AVERAGE ANNUAL TOTAL RETURN 1 (%) (APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge Gross Net
---------------------------------- ---------------------------------- Expense Expense
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year Ratio 2 Ratio 3
- --------------------------------------------------------------------------------------------------------------------
Class A 8.05 2.97 9.20 8.45 14.64 9.25 10.51 9.10 1.48% 1.40%
- --------------------------------------------------------------------------------------------------------------------
Class B 9.23 3.60 9.44 8.30 14.23 8.60 9.72 8.30 2.23% 2.15%
- --------------------------------------------------------------------------------------------------------------------
Class C 13.07 7.29 9.65 8.27 14.07 8.29 9.65 8.27 2.23% 2.15%
- --------------------------------------------------------------------------------------------------------------------
Class Z 14.52 9.12 10.34 8.95 1.65% 1.57%
- --------------------------------------------------------------------------------------------------------------------
Benchmark
- --------------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Growth Index 4 11.77 11.13 11.60 9.65
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING
RESULTS IN INCREASED TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER
SHORT-TERM CAPITAL GAINS. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
NII Holdings Incorporated 4.90%
- --------------------------------------------------------------------------------
Priceline.com Incorporated 2.90%
- --------------------------------------------------------------------------------
Resources Connection Incorporated 2.78%
- --------------------------------------------------------------------------------
Kyphon Incorporated 2.30%
- --------------------------------------------------------------------------------
CB Richard Ellis Group Incorporated Class A 2.27%
- --------------------------------------------------------------------------------
Microsemi Corporation 2.20%
- --------------------------------------------------------------------------------
VistaPrint Limited 2.18%
- --------------------------------------------------------------------------------
Oshkosh Truck Corporation 2.13%
- --------------------------------------------------------------------------------
NeuStar Incorporated Class A 2.12%
- --------------------------------------------------------------------------------
Textron Incorporated 2.08%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (15%)
Energy (7%)
Financials (7%)
Health Care (21%)
Industrials (19%)
Information Technology (22%)
Telecommunication Services (9%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Class B and Class C shares
reflects the performance of the Class A shares, adjusted to reflect Class B and
Class C sales charges and expenses, as applicable. Performance shown prior to
the inception of the Class Z shares reflects the performance of the Class A
shares, adjusted reflect Class Z expenses.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell Midcap(R) Growth Index measures the performance of those Russell
Midcap(R) companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000(R) Index. You
cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGERS FUND INCEPTION
Jerome "Cam" Philpott, CFA 07/13/1990
Stuart Roberts
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge Gross Net
---------------------------------- ---------------------------------- Expense Expense
6-Months* 1-Year 5-Year 10-Year 6-Months* 1-Year 5-Year 10-Year Ratio 2 Ratio 3
- --------------------------------------------------------------------------------------------------------------------
Class A 4.07 2.25 10.20 7.58 10.42 8.49 11.51 8.22 1.61% 1.40%
- --------------------------------------------------------------------------------------------------------------------
Class B 5.02 2.65 10.41 7.41 10.02 7.65 10.68 7.41 2.36% 2.15%
- --------------------------------------------------------------------------------------------------------------------
Class C 9.09 6.65 10.71 7.42 10.09 7.65 10.71 7.42 2.36% 2.15%
- --------------------------------------------------------------------------------------------------------------------
Class Z 10.46 8.29 11.33 8.04 1.78% 1.57%
- --------------------------------------------------------------------------------------------------------------------
Administrator Class 10.58 8.65 11.68 8.30 1.43% 1.20%
- --------------------------------------------------------------------------------------------------------------------
Institutional Class 10.76 9.07 11.82 8.37 1.16% 0.90%
- --------------------------------------------------------------------------------------------------------------------
Benchmark
- --------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Growth Index 4 7.42 4.53 8.91 6.71
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING
RESULTS IN INCREASED TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER
SHORT-TERM CAPITAL GAINS. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
8
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Priceline.com Incorporated 2.90%
- --------------------------------------------------------------------------------
Resources Connection Incorporated 2.76%
- --------------------------------------------------------------------------------
Gardner Denver Incorporated 2.63%
- --------------------------------------------------------------------------------
Skillsoft plc ADR 2.21%
- --------------------------------------------------------------------------------
Microsemi Corporation 2.19%
- --------------------------------------------------------------------------------
VistaPrint Limited 2.17%
- --------------------------------------------------------------------------------
DJ Orthopedics Incorporated 2.13%
- --------------------------------------------------------------------------------
Kyphon Incorporated 2.12%
- --------------------------------------------------------------------------------
InVentiv Health Incorporated 2.09%
- --------------------------------------------------------------------------------
Global Cash Access Incorporated 2.04%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (17%)
Energy (3%)
Financials (4%)
Health Care (19%)
Industrials (22%)
Information Technology (31%)
Telecommunication Services (4%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Class B and Class C shares
reflects the performance of the Class A shares, adjusted to reflect Class B and
Class C sales charges and expenses, as applicable. Prior to April, 11, 2005, the
Administrator Class was named the Institutional Class. Performance shown prior
to the inception of the Administrator Class shares reflects the performance of
the Class A shares, and includes expenses that are not applicable to and are
higher than those of the Administrator Class shares, but does not include Class
A sales charges. If it did include Class A sales charges, returns would be
lower. Performance shown prior to the inception of the Institutional Class
shares reflects the performance of the Administrator Class shares, and includes
expenses that are not applicable to and are higher than those of the
Institutional Class shares. Performance shown prior to June 9, 2003 for the
Institutional Class shares reflects the performance of the Class A shares, and
includes expenses that are not applicable to and are higher than those of the
Institutional Class shares, but does not include Class A sales charges. If it
did include Class A sales charges, returns would be lower. Performance shown
prior to April 11, 2005 for the Class Z shares reflects the performance of the
Class A shares, adjusted to reflect Class Z expenses.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell 2000(R) Growth Index measures the performance of those Russell
2000(R) companies with higher price-to-book ratios and higher forecasted growth
values. You cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGER FUND INCEPTION
Jenny B. Jones 08/01/1993
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS APRIL 30, 2007)
- --------------------------------------------------------------------------------
Gross Net
Expense Expense
6-Months* 1-Year 5-Year 10-Year Ratio 2 Ratio 3
- ------------------------------------------------------------------------------------------
Administrator Class 11.46 13.74 13.78 14.37 1.34% 1.20%
- ------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------
Russell 2000(R) Index 4 6.86 7.83 11.14 10.40
- ------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA QUOTED. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. 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
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Dresser Rand Group Incorporated 2.61%
- --------------------------------------------------------------------------------
Scientific Games Corporation Class A 2.26%
- --------------------------------------------------------------------------------
Reinsurance Group of America Incorporated 1.88%
- --------------------------------------------------------------------------------
Emulex Corporation 1.83%
- --------------------------------------------------------------------------------
Informatica Corporation 1.76%
- --------------------------------------------------------------------------------
Claire's Stores Incorporated 1.70%
- --------------------------------------------------------------------------------
Bank of Hawaii Corporation 1.62%
- --------------------------------------------------------------------------------
Perrigo Company 1.53%
- --------------------------------------------------------------------------------
Geo Group Incorporated 1.40%
- --------------------------------------------------------------------------------
Acco Brands Corporation 1.20%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (11%)
Consumer Staples (1%)
Energy (7%)
Financials (16%)
Health Care (14%)
Industrials (21%)
Information Technology (21%)
Materials (5%)
Utilities (2%)
Telecommunication Services (2%)
- --------------------------------------------------------------------------------
1 Prior to April 11, 2005, the Administrator Class was named the Institutional
Class.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 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.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGER FUND INCEPTION
I. Charles Rinaldi 12/31/1997
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Including Sales Charge Excluding Sales Charge Gross Net
--------------------------------------- -------------------------------------------- Expense Expense
6-Months* 1-Year 5-Year Life of Fund 6-Months* 1-Year 5-Year Life of Fund Ratio 2 Ratio 3
- ----------------------------------------------------------------------------------------------------------------------
Class A 5.02 3.91 14.10 17.23 11.43 10.24 15.46 17.98 1.44% 1.44%
- ----------------------------------------------------------------------------------------------------------------------
Class B 6.01 4.42 14.34 17.36 11.01 9.42 14.57 17.36 2.19% 2.19%
- ----------------------------------------------------------------------------------------------------------------------
Class C 10.02 8.43 14.59 17.26 11.02 9.43 14.59 17.26 2.19% 2.19%
- ----------------------------------------------------------------------------------------------------------------------
Class Z 11.46 10.32 15.61 18.20 1.61% 1.36%
- ----------------------------------------------------------------------------------------------------------------------
Benchmark
- ----------------------------------------------------------------------------------------------------------------------
Russell 2000(R) Value Index 4 6.36 11.22 13.06 11.28
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. CERTAIN INVESTMENT
STRATEGIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). THIS FUND IS EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE
FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
12
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Global Industries Limited 5.82%
- --------------------------------------------------------------------------------
Range Resources Corporation 4.76%
- --------------------------------------------------------------------------------
Goldcorp Incorporated 4.04%
- --------------------------------------------------------------------------------
IPSCO Incorporated 3.11%
- --------------------------------------------------------------------------------
Randgold Resources Limited ADR 3.11%
- --------------------------------------------------------------------------------
Chicago Bridge & Iron Company NV 3.04%
- --------------------------------------------------------------------------------
Intermec Incorporated 2.50%
- --------------------------------------------------------------------------------
Steel Dynamics Incorporated 2.14%
- --------------------------------------------------------------------------------
Geo Group Incorporated 1.96%
- --------------------------------------------------------------------------------
Apex Silver Mines Limited 1.92%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (8%)
Consumer Staples (2%)
Energy (29%)
Financials (2%)
Health Care (7%)
Industrials (14%)
Information Technology (15%)
Materials (22%)
Telecommunication Services (1%)
- --------------------------------------------------------------------------------
1 Performance shown prior to April 11, 2005 for the Class A, Class B, Class C
and Class Z shares reflects the performance of the Class A, Class B, Class C and
Class Z shares, respectively, of the Strong Advisor Small Cap Value Fund, the
predecessor fund. Performance shown prior to the inception of the Class A, Class
B and Class C shares reflects the performance of the Class Z shares of the
predecessor fund, adjusted to reflect Class A, Class B and Class C sales charges
and expenses, as applicable.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell 2000(R) Value Index measures the performance of those Russell
2000(R) companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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 period and held for the entire period (November 1, 2006 to April 30,
2007).
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 11/01/2006 04/30/2007 Period(1) Expense Ratio
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class A
Actual $ 1,000.00 $ 1,108.40 $ 7.32 1.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.85 $ 7.00 1.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class B
Actual $ 1,000.00 $ 1,104.40 $ 11.22 2.15%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.13 $ 10.74 2.15%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class C
Actual $ 1,000.00 $ 1,104.40 $ 11.22 2.15%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.13 $ 10.74 2.15%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage C&B Mid Cap Value Fund - Class D
Actual $ 1,000.00 $ 1,109.40 $ 6.54 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 $ 1,109.70 $ 6.02 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 $ 1,110.80 $ 4.71 0.90%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,020.33 $ 4.51 0.90%
14
FUND EXPENSES WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
WELLS FARGO ADVANTAGE COMMON STOCK FUND 11/01/2006 04/30/2007 Period(1) Expense Ratio
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Common Stock Fund - Class A
Actual $ 1,000.00 $ 1,127.10 $ 6.91 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 $ 1,122.70 $ 10.84 2.06%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,014.58 $ 10.29 2.06%
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Common Stock Fund - Class C
Actual $ 1,000.00 $ 1,122.80 $ 10.84 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 $ 1,127.00 $ 6.80 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 $ 1,146.40 $ 7.45 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 $ 1,142.30 $ 11.42 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 $ 1,140.70 $ 11.41 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 $ 1,145.20 $ 8.35 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 $ 1,104.20 $ 7.30 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 $ 1,100.20 $ 11.20 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 $ 1,100.90 $ 11.20 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 $ 1,104.60 $ 8.19 1.57%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,017.01 $ 7.85 1.57%
15
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS FUND EXPENSES
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses
Value Value Paid During Net Annual
11/01/2006 04/30/2007 Period(1) Expense Ratio
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Growth Fund - Administrator Class
Actual $ 1,000.00 $ 1,105.80 $ 6.27 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 $ 1,107.60 $ 4.70 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 $ 1,114.60 $ 6.29 1.20%
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000.00 $ 1,018.84 $ 6.01 1.20%
WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small Cap Value Fund - Class A
Actual $ 1,000.00 $ 1,114.30 $ 7.55 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 $ 1,110.10 $ 11.46 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 $ 1,110.20 $ 11.46 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 $ 1,114.60 $ 7.13 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, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 94.99%
AMUSEMENT & RECREATION SERVICES - 1.34%
285,570 INTERNATIONAL SPEEDWAY CORPORATION CLASS A $ 14,107,158
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 2.14%
673,150 JONES APPAREL GROUP INCORPORATED 22,476,479
--------------
BUSINESS SERVICES - 10.33%
1,148,990 CATALINA MARKETING CORPORATION<< 36,422,983
875,300 IMS HEALTH INCORPORATED 25,672,549
989,020 MONEYGRAM INTERNATIONAL INCORPORATED<< 28,117,839
1,040,370 PARAMETRIC TECHNOLOGY CORPORATION+ 18,487,375
108,700,746
--------------
CHEMICALS & ALLIED PRODUCTS - 5.07%
650,016 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 31,636,279
802,410 VALSPAR CORPORATION 21,697,166
53,333,445
--------------
DEPOSITORY INSTITUTIONS - 2.17%
251,540 CITY NATIONAL CORPORATION 18,417,759
193,162 SOUTH FINANCIAL GROUP INCORPORATED 4,371,256
22,789,015
--------------
EATING & DRINKING PLACES - 1.25%
294,398 CBRL GROUP INCORPORATED<< 13,124,263
--------------
EDUCATIONAL SERVICES - 4.05%
3,080,280 CORINTHIAN COLLEGES INCORPORATED+ 42,600,272
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 1.90%
1,291,980 FLEXTRONICS INTERNATIONAL LIMITED+ 14,405,577
188,970 MOLEX INCORPORATED 5,646,424
20,052,001
--------------
FOOD & KINDRED PRODUCTS - 3.88%
599,620 PEPSIAMERICAS INCORPORATED 14,474,827
720,750 PILGRIMS PRIDE CORPORATION<< 26,314,583
40,789,410
--------------
FURNITURE & FIXTURES - 2.25%
1,213,050 STEELCASE INCORPORATED<< 23,678,736
--------------
GENERAL MERCHANDISE STORES - 2.80%
1,378,280 DOLLAR GENERAL CORPORATION 29,426,278
--------------
HEALTH SERVICES - 0.87%
151,660 UNIVERSAL HEALTH SERVICES CLASS B<< 9,208,795
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 2.07%
470,760 GUITAR CENTER INCORPORATED<<+ 21,796,188
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 15.98%
246,144 CARLISLE COMPANIES INCORPORATED 10,136,210
319,630 CDW CORPORATION 23,016,556
635,500 DIEBOLD INCORPORATED<< 30,294,285
584,780 DOVER CORPORATION 28,139,614
3,270,650 ENTEGRIS INCORPORATED+ 38,332,018
17
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (CONTINUED)
717,390 PALL CORPORATION $ 30,094,511
252,940 TENNANT COMPANY 8,099,139
168,112,333
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 3.90%
890,760 ARTHUR J. GALLAGHER & COMPANY<< 24,905,650
646,750 UNUMPROVIDENT CORPORATION 16,091,140
40,996,790
--------------
INSURANCE CARRIERS - 8.02%
117,314 AMBAC FINANCIAL GROUP INCORPORATED<< 10,769,425
330,773 MBIA INCORPORATED<< 23,008,570
195,300 RENAISSANCERE HOLDINGS LIMITED 10,575,495
374,000 STEWART INFORMATION SERVICES CORPORATION 15,042,280
43,560 WHITE MOUNTAIN INSURANCE GROUP LIMITED 24,959,880
84,355,650
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.06%
270,440 METTLER-TOLEDO INTERNATIONAL INCORPORATED+ 26,400,353
550,130 QUEST DIAGNOSTICS INCORPORATED 26,895,856
53,296,209
--------------
MEDICAL MANAGEMENT SERVICES - 1.40%
188,370 MEDCO HEALTH SOLUTIONS INCORPORATED+ 14,696,627
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.00%
441,960 TIFFANY & COMPANY<< 21,077,072
--------------
MISCELLANEOUS RETAIL - 1.89%
712,620 ZALE CORPORATION<<+ 19,889,224
--------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 2.44%
996,688 CAPITALSOURCE INCORPORATED<< 25,684,650
--------------
OIL & GAS EXTRACTION - 1.27%
339,980 CIMAREX ENERGY COMPANY 13,395,212
--------------
PERSONAL SERVICES - 2.16%
652,499 G & K SERVICES INCORPORATED CLASS A 22,772,215
--------------
PRIMARY METAL INDUSTRIES - 2.61%
531,982 HUBBELL INCORPORATED CLASS B 27,498,150
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.38%
556,724 HARTE HANKS INCORPORATED 14,530,496
--------------
TEXTILE MILL PRODUCTS - 1.82%
499,900 ALBANY INTERNATIONAL CORPORATION CLASS A<< 19,146,170
--------------
TRANSPORTATION EQUIPMENT - 1.58%
1,050,335 FEDERAL SIGNAL CORPORATION 16,584,790
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 3.36%
1,176,350 HAIN CELESTIAL GROUP INCORPORATED+ 35,325,787
--------------
TOTAL COMMON STOCKS (COST $846,888,514) 999,444,161
--------------
18
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 16.21%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.08%
777,909 SCUDDER DAILY ASSETS MONEY MARKET FUND $ 777,909
39,378 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 39,378
817,287
--------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 16.13%
$ 466,746 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37% 05/14/2008 466,764
2,389,479 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 2,390,387
567,770 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 565,369
1,296,516 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 1,296,632
1,296,516 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 1,296,645
3,889,547 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 3,889,781
2,074,425 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $2,074,734) 5.36 05/01/2007 2,074,425
2,074,425 BUCKINGHAM II CDO LLC 5.31 05/29/2007 2,065,962
622,328 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 619,608
1,037,213 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 1,036,912
1,037,213 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 1,031,622
1,296,516 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 1,292,354
518,606 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 516,039
777,909 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 772,814
1,348,376 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 1,338,371
2,178,146 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 2,155,646
1,482,592 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 1,479,345
2,593,032 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 2,579,055
1,719,699 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 1,714,677
710,854 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 706,510
985,352 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 979,046
188,099 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 186,921
518,606 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 513,322
1,086,480 CHARTA LLC++ 5.31 06/22/2007 1,078,256
518,606 CHEYNE FINANCE LLC 5.29 06/19/2007 514,909
3,370,941 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 3,370,300
231,298 CHEYNE FINANCE LLC 5.30 05/14/2007 230,859
1,296,516 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 1,296,607
518,606 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 518,586
554,131 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 554,297
571,763 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 571,986
15,558,189 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $15,560,505) 5.36 05/01/2007 15,558,189
674,188 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 665,848
259,303 COMERICA BANK+/- 5.32 02/08/2008 258,865
2,095,169 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 2,092,111
4,148,850 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 4,136,736
1,296,516 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 1,296,192
2,593,032 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 2,593,006
1,944,774 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 1,940,806
777,909 DEER VALLEY FUNDING LLC 5.31 05/07/2007 777,233
19
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 2,008,199 DEER VALLEY FUNDING LLC++ 5.31% 05/10/2007 $ 2,005,568
1,296,516 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 1,293,300
251,368 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 250,634
1,882,282 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 1,869,124
11,353,646 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $11,355,336) 5.36 05/01/2007 11,353,646
2,593,032 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 2,593,213
338,235 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 334,985
647,999 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 648,109
1,452,098 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 1,446,173
1,296,516 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 1,296,529
103,721 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 103,723
1,815,122 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 1,815,249
3,370,941 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 3,370,941
1,296,516 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 1,296,684
311,164 K2 (USA) LLC+/-++ 5.30 07/16/2007 311,189
518,606 K2 (USA) LLC+/-++ 5.33 09/28/2007 518,606
157,760 KESTREL FUNDING US LLC 5.27 05/21/2007 157,299
2,852,335 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 2,852,249
2,358,103 KESTREL FUNDING US LLC++ 5.30 06/28/2007 2,338,200
2,593,032 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 2,573,402
349,696 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 345,979
1,555,819 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 1,537,709
933,491 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 922,215
3,181,079 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 3,142,175
793,001 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 791,383
727,138 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 727,029
648,258 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 648,251
176,637 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 176,302
3,370,941 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 3,366,019
1,463,144 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 1,458,667
3,733,965 LIQUID FUNDING LIMITED 5.30 05/07/2007 3,730,717
155,582 LIQUID FUNDING LIMITED 5.31 07/30/2007 153,544
3,319,080 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 3,319,080
1,094,259 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 1,094,697
1,296,516 MORGAN STANLEY+/- 5.31 07/12/2007 1,296,516
1,296,516 MORGAN STANLEY+/- 5.38 08/07/2007 1,296,516
1,903,804 MORGAN STANLEY+/- 5.48 07/27/2007 1,904,299
11,478,809 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $11,480,518) 5.36 05/01/2007 11,478,809
239,855 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 239,875
207,443 NATIONAL CITY BANK+/- 5.41 09/04/2007 207,467
1,486,585 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 1,487,135
967,979 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 966,846
2,593,032 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 2,593,187
749,058 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 749,058
259,303 PICAROS FUNDING PLC++ 5.27 06/22/2007 257,340
1,478,028 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 1,480,097
1,296,516 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 1,296,516
985,352 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 985,352
20
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 209,776 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37% 10/22/2007 $ 209,822
651,940 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 650,610
1,866,983 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 1,866,684
1,192,795 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 1,192,794
207,443 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 204,096
1,037,213 SLM CORPORATION+/-++ 5.33 05/12/2008 1,035,802
1,452,098 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 1,452,649
1,037,213 TANGO FINANCE CORPORATION 5.32 07/31/2007 1,023,501
299,806 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 299,800
1,296,516 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 1,296,594
1,296,516 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 1,296,607
518,606 VERSAILLES CDS LLC++ 5.31 05/11/2007 517,849
2,593,032 VETRA FINANCE CORPORATION 5.28 06/12/2007 2,577,188
366,603 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 365,906
1,190,876 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 1,178,395
109,478 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 109,112
169,782,005
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $170,599,292) 170,599,292
--------------
SHARES
SHORT-TERM INVESTMENTS - 4.63%
48,663,541 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 48,663,541
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $48,663,541) 48,663,541
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,066,151,347)* 115.83% $1,218,706,994
OTHER ASSETS AND LIABILITIES, NET (15.83) (166,536,402)
------ --------------
TOTAL NET ASSETS 100.00% $1,052,170,592
====== ==============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $48,663,541.
* 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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 86.55%
APPAREL & ACCESSORY STORES - 2.58%
590,000 CHICO'S FAS INCORPORATED+ $ 15,552,400
195,000 KOHL'S CORPORATION+<< 14,437,800
29,990,200
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 1.34%
379,000 ADVANCE AUTO PARTS INCORPORATED 15,614,800
--------------
BUSINESS SERVICES - 9.56%
845,000 ACTIVISION INCORPORATED+ 16,900,000
405,000 AMDOCS LIMITED+ 14,883,750
385,000 CHECKFREE CORPORATION+ 12,959,100
505,000 CITRIX SYSTEMS INCORPORATED+ 16,463,000
290,000 COGNOS INCORPORATED+ 12,501,900
735,000 ECLIPSYS CORPORATION+ 13,773,900
825,000 RED HAT INCORPORATED+ 17,440,500
220,000 YAHOO! INCORPORATED+<< 6,168,800
111,090,950
--------------
CHEMICALS & ALLIED PRODUCTS - 4.92%
315,000 HOSPIRA INCORPORATED+ 12,773,250
675,000 HUNTSMAN CORPORATION 13,230,000
285,000 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 13,870,950
305,000 MEDIMMUNE INCORPORATED+ 17,287,400
57,161,600
--------------
COMMUNICATIONS - 8.02%
470,000 CABLEVISION SYSTEMS CORPORATION NEW YORK GROUP CLASS A+<< 15,406,600
362,000 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 12,825,660
870,000 FOUNDRY NETWORKS INCORPORATED+ 13,154,400
353,000 LIBERTY GLOBAL INCORPORATED SERIES A+<< 12,669,170
89,000 LIBERTY MEDIA HOLDING CORPORATION CAPITAL SERIES A+<< 10,054,330
375,000 LIBERTY MEDIA HOLDING CORPORATION INTERACTIVE SERIES A+ 9,386,250
475,000 NEUSTAR INCORPORATED CLASS A+ 13,661,000
295,000 TIME WARNER TELECOM INCORPORATED+ 6,047,500
93,204,910
--------------
DEPOSITORY INSTITUTIONS - 3.76%
207,000 CITY NATIONAL CORPORATION<< 15,156,540
360,000 FIFTH THIRD BANCORP 14,612,400
290,000 MARSHALL & ILSLEY CORPORATION 13,925,800
43,694,740
--------------
ELECTRIC, GAS & SANITARY SERVICES - 1.37%
570,000 REPUBLIC SERVICES INCORPORATED 15,920,100
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 4.78%
220,500 ADVANCED MICRO DEVICES INCORPORATED+ 3,047,310
755,000 ALTERA CORPORATION 17,017,700
540,000 ATHEROS COMMUNICATIONS INCORPORATED+# 14,466,600
555,000 ENERSYS+<< 9,040,950
280,000 TESSERA TECHNOLOGIES INCORPORATED+ 11,981,200
55,553,760
--------------
22
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 2.35%
1,775,000 BEARINGPOINT INCORPORATED+ $ 13,028,500
397,000 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED 14,319,790
27,348,290
--------------
FOOD & KINDRED PRODUCTS - 2.46%
700,000 COCA-COLA ENTERPRISES INCORPORATED<< 15,358,000
140,000 MOLSON COORS BREWING COMPANY<< 13,199,200
28,557,200
--------------
FOOD STORES - 1.20%
250,000 PANERA BREAD COMPANY+ 13,922,500
--------------
HEALTH SERVICES - 3.25%
260,000 EDWARDS LIFESCIENCES CORPORATION+<< 12,740,000
933,500 NEKTAR THERAPEUTICS+ 11,547,395
750,000 VALEANT PHARMACEUTICALS INTERNATIONAL 13,515,000
37,802,395
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.30%
430,000 WILLIAMS-SONOMA INCORPORATED 15,144,600
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.98%
285,000 CAMERON INTERNATIONAL CORPORATION+ 18,402,450
350,000 CARLISLE COMPANIES INCORPORATED<< 14,413,000
305,000 DOVER CORPORATION 14,676,600
555,000 SEAGATE TECHNOLOGY 12,293,250
406,000 SMITH INTERNATIONAL INCORPORATED 21,290,640
81,075,940
--------------
INSURANCE CARRIERS - 2.44%
502,000 HCC INSURANCE HOLDINGS INCORPORATED 15,391,320
240,000 RENAISSANCERE HOLDINGS LIMITED 12,996,000
28,387,320
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.00%
525,000 AFFYMETRIX INCORPORATED+ 13,791,750
840,000 BOSTON SCIENTIFIC CORPORATION+<< 12,969,600
370,000 RESPIRONICS INCORPORATED+<< 15,081,200
566,000 TRIMBLE NAVIGATION LIMITED+<< 16,232,880
58,075,430
--------------
METAL MINING - 1.16%
480,000 BARRICK GOLD CORPORATION 13,492,800
--------------
MISCELLANEOUS RETAIL - 1.42%
455,000 CVS CORPORATION<< 16,489,200
--------------
OIL & GAS EXTRACTION - 7.21%
345,000 APACHE CORPORATION 25,012,500
350,000 EOG RESOURCES INCORPORATED<< 25,704,000
233,700 FOREST OIL CORPORATION+ 8,235,588
295,000 NOBLE CORPORATION 24,841,950
83,794,038
--------------
PRIMARY METAL INDUSTRIES - 0.64%
210,000 ALCOA INCORPORATED 7,452,900
--------------
23
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.25%
400,000 DOW JONES & COMPANY INCORPORATED $ 14,532,000
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 2.40%
136,000 MERRILL LYNCH & COMPANY INCORPORATED 12,271,280
915,000 TD AMERITRADE HOLDING CORPORATION+ 15,600,750
27,872,030
--------------
TRANSPORTATION BY AIR - 1.30%
555,000 SKY WEST INCORPORATED 15,101,550
--------------
TRANSPORTATION EQUIPMENT - 2.55%
248,000 AUTOLIV INCORPORATED 14,421,200
267,000 GOODRICH CORPORATION 15,176,280
29,597,480
--------------
TRANSPORTATION SERVICES - 1.05%
250,000 GATX CORPORATION 12,252,500
--------------
TRAVEL & RECREATION - 1.21%
595,988 EXPEDIA INCORPORATED+ 14,077,237
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 3.81%
360,000 SUPERVALU INCORPORATED 16,524,000
420,000 SYSCO CORPORATION<< 13,750,800
270,000 TRACTOR SUPPLY COMPANY+ 13,969,800
44,244,600
--------------
WHOLESALE TRADE-DURABLE GOODS - 1.24%
365,000 ARROW ELECTRONICS INCORPORATED+ 14,424,801
--------------
TOTAL COMMON STOCKS (COST $723,455,144) 1,005,875,871
--------------
UNITS MATURITY DATE
EXCHANGEABLE NOTES - 6.17%
95,000 CARDINAL HEALTH INCORPORATED+ ++ (J) 04/14/2008 6,598,985
93,600 CARDINAL HEALTH INCORPORATED+ ++ (J) 05/05/2008 6,481,987
278,000 CARNIVAL INCORPORATED+ (J) 10/03/2007 13,330,100
225,000 CATERPILLAR INCORPORATED+ ++ (J) 07/19/2007 15,774,075
680,660 CORNING INCORPORATED+ (J) 05/10/2007 15,886,604
394,600 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+ ++ (J) 09/06/2007 7,108,719
225,040 YAHOO INCORPORATED+ ++ (J) 10/03/2007 6,528,410
TOTAL EXCHANGEABLE NOTES (COST $69,281,549) 71,708,880
--------------
SHARES
INVESTMENT COMPANIES - 2.56%
STOCK FUNDS - 2.56%
95,000 MIDCAP SPDR TRUST SERIES 1<< 15,076,500
100,000 VANGUARD TOTAL STOCK MARKET ETF<< 14,713,000
TOTAL INVESTMENT COMPANIES (COST $28,248,309) 29,789,500
--------------
24
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 11.09%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.05%
587,934 SCUDDER DAILY ASSETS MONEY MARKET FUND $ 587,934
29,761 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 29,761
617,695
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 11.04%
$ 352,760 AMERICAN GENERAL FINANCE CORPORATION+++/- 5.37% 05/14/2008 352,775
1,805,938 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 1,806,624
429,114 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 427,298
979,890 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+++/- 5.34 10/25/2007 979,978
979,890 BANCO SANTANDER TOTTA LOAN+++/- 5.32 05/16/2008 979,988
2,939,671 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 2,939,847
1,567,824 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $1,568,057) 5.36 05/01/2007 1,567,824
1,567,824 BUCKINGHAM II CDO LLC 5.31 05/29/2007 1,561,428
470,347 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 468,292
783,912 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 783,685
783,912 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 779,687
979,890 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 976,745
391,956 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 390,016
587,934 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 584,083
1,019,086 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 1,011,524
1,646,216 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 1,629,210
1,120,524 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 1,118,070
1,959,780 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 1,949,217
1,299,726 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 1,295,931
537,254 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 533,972
744,717 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 739,950
142,162 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 141,273
391,956 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 387,962
821,148 CHARTA LLC++ 5.31 06/22/2007 814,932
391,956 CHEYNE FINANCE LLC 5.29 06/19/2007 389,161
2,547,714 CHEYNE FINANCE LLC+++/- 5.29 02/25/2008 2,547,230
174,812 CHEYNE FINANCE LLC 5.30 05/14/2007 174,480
979,890 CHEYNE FINANCE LLC SERIES MTN+++/- 5.32 07/16/2007 979,959
391,956 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 391,940
418,805 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 418,931
432,132 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 432,300
11,758,682 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $11,760,433) 5.36 05/01/2007 11,758,682
509,543 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 503,240
195,978 COMERICA BANK+/- 5.32 02/08/2008 195,647
1,583,503 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 1,581,191
3,135,649 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 3,126,493
979,890 CULLINAN FINANCE CORPORATION+++/- 5.32 02/12/2008 979,645
1,959,780 CULLINAN FINANCE CORPORATION SERIES MTN2+++/- 5.28 06/25/2007 1,959,761
1,469,835 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 1,466,837
25
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCK FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 587,934 DEER VALLEY FUNDING LLC 5.31% 05/07/2007 $ 587,423
1,517,772 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 1,515,783
979,890 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 977,460
189,981 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 189,426
1,422,605 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 1,412,661
8,580,942 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $8,582,220) 5.36 05/01/2007 8,580,942
1,959,780 FIVE FINANCE INCORPORATED SERIES MTN+++/- 5.37 06/13/2007 1,959,918
255,634 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 253,177
489,749 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 489,832
1,097,477 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 1,092,999
979,890 HARRIER FINANCE FUNDING LLC+++/- 5.30 01/11/2008 979,900
78,391 HARRIER FINANCE FUNDING LLC SERIES MTN+++/- 5.42 05/15/2007 78,393
1,371,846 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 1,371,942
2,547,714 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 2,547,714
979,890 INTESA BANK (IRELAND) PLC SERIES BKNT+++/- 5.32 05/23/2008 980,018
235,174 K2 (USA) LLC+++/- 5.30 07/16/2007 235,192
391,956 K2 (USA) LLC+++/- 5.33 09/28/2007 391,956
119,233 KESTREL FUNDING US LLC 5.27 05/21/2007 118,885
2,155,758 KESTREL FUNDING US LLC+++/- 5.29 02/25/2008 2,155,694
1,782,224 KESTREL FUNDING US LLC++ 5.30 06/28/2007 1,767,182
1,959,780 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 1,944,945
264,296 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 261,487
1,175,868 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 1,162,181
705,521 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 696,998
2,404,219 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 2,374,816
599,340 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 598,117
549,562 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 549,479
489,945 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 489,940
133,500 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 133,247
2,547,714 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 2,543,995
1,105,826 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 1,102,442
2,822,084 LIQUID FUNDING LIMITED 5.30 05/07/2007 2,819,629
117,587 LIQUID FUNDING LIMITED 5.31 07/30/2007 116,046
2,508,519 LIQUID FUNDING LIMITED+++/- 5.33 11/13/2007 2,508,519
827,027 METLIFE GLOBAL FUNDING I+++/- 5.42 10/05/2007 827,358
979,890 MORGAN STANLEY+/- 5.31 07/12/2007 979,890
979,890 MORGAN STANLEY+/- 5.38 08/07/2007 979,890
1,438,871 MORGAN STANLEY+/- 5.48 07/27/2007 1,439,245
8,675,538 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $8,676,830) 5.36 05/01/2007 8,675,538
181,280 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 181,294
156,782 NATIONAL CITY BANK+/- 5.41 09/04/2007 156,801
1,123,542 NATIONWIDE BUILDING SOCIETY+++/- 5.48 07/20/2007 1,123,958
731,586 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 730,730
1,959,780 NORTHERN ROCK PLC+++/-SS. 5.34 06/04/2008 1,959,898
566,129 PARAGON MORTGAGES PLC SERIES 12A+++/- 5.30 05/15/2007 566,129
195,978 PICAROS FUNDING PLC++ 5.27 06/22/2007 194,494
1,117,075 PREMIUM ASSET TRUST+++/- 5.47 12/21/2007 1,118,639
26
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 979,890 PREMIUM ASSET TRUST SERIES 06-B+++/- 5.36% 12/16/2007 $ 979,890
744,717 PYXIS MASTER TRUST SERIES 2007-3+++/- 5.37 08/27/2007 744,717
158,546 RACERS TRUST SERIES 2004-6-MM+++/- 5.37 10/22/2007 158,581
492,728 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 491,723
1,411,042 SEDNA FINANCE INCORPORATED+++/- 5.29 04/10/2008 1,410,816
901,499 SHIPROCK FINANCE SERIES 2007-4A+++/- 5.39 04/11/2008 901,499
156,782 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 154,254
783,912 SLM CORPORATION+++/- 5.33 05/12/2008 782,846
1,097,477 STANFIELD VICTORIA FUNDING LLC+++/- 5.35 04/03/2008 1,097,894
783,912 TANGO FINANCE CORPORATION 5.32 07/31/2007 773,549
226,590 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 226,585
979,890 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+++/- 5.33 06/15/2007 979,949
979,890 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 5.34 05/08/2008 979,959
391,956 VERSAILLES CDS LLC++ 5.31 05/11/2007 391,384
1,959,780 VETRA FINANCE CORPORATION 5.28 06/12/2007 1,947,806
277,074 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 276,547
900,049 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 890,616
82,742 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 82,465
128,319,090
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $128,936,785) 128,936,785
--------------
SHARES
SHORT-TERM INVESTMENTS - 4.64%
53,943,769 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 53,943,769
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $53,943,769) 53,943,769
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,003,865,556)* 111.01% $1,290,254,805
OTHER ASSETS AND LIABILITIES, NET (11.01) (127,973,950)
------ --------------
TOTAL NET ASSETS 100.00% $1,162,280,855
====== ==============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS. (SEE NOTE 2)
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
(J) THE HOLDER OF AN EXCHANGEABLE EQUITY-LINKED NOTE WILL RECEIVE, AT THE
NOTE'S MATURITY, SHARES OF THE REFERENCED EQUITY BASED ON THE FINAL INDEX
VALUE OF THE EQUITY (OR THE CASH EQUIVALENT). THE INDEX VALUE AND MATURITY
DATE ARE BOTH DEFINED IN THE TERMS OF THE NOTE.
+/- VARIABLE RATE INVESTMENTS.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $53,943,769.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS - (0.12%)
(5,400) ATHEROS COMMUNICATIONS CALL+ $25.00 06/16/2007 $ (1,431,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(1,333,759)) (1,431,000)
--------------
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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.15%
AMUSEMENT & RECREATION SERVICES - 1.11%
37,200 PENN NATIONAL GAMING INCORPORATED+ $ 1,798,248
--------------
APPAREL & ACCESSORY STORES - 0.49%
30,800 URBAN OUTFITTERS INCORPORATED+ 793,408
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 1.48%
30,400 GUESS? INCORPORATED<< 1,197,760
21,400 PHILLIPS-VAN HEUSEN CORPORATION 1,196,260
2,394,020
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 0.98%
38,400 ADVANCE AUTO PARTS INCORPORATED 1,582,080
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.68%
86,239 WRIGHT EXPRESS CORPORATION+ 2,717,391
--------------
BIOPHARMACEUTICALS - 1.78%
44,000 GENZYME CORPORATION+ 2,873,640
--------------
BUSINESS SERVICES - 12.44%
48,100 ALLIANCE DATA SYSTEMS CORPORATION+<< 3,062,046
94,100 AQUANTIVE INCORPORATED+<< 2,880,401
77,900 AUTODESK INCORPORATED+ 3,214,933
28,800 CACI INTERNATIONAL INCORPORATED CLASS A+<< 1,317,024
33,300 CITRIX SYSTEMS INCORPORATED+ 1,085,580
58,300 CONVERGYS CORPORATION+ 1,472,658
27,200 DIGITAL RIVER INCORPORATED+<< 1,592,016
10,300 F5 NETWORKS INCORPORATED+ 790,834
20,700 FACTSET RESEARCH SYSTEMS INCORPORATED 1,273,257
41,800 MONSTER WORLDWIDE INCORPORATED+ 1,757,690
22,500 TELETECH HOLDINGS INCORPORATED+ 848,925
27,249 VALUECLICK INCORPORATED+<< 779,321
20,074,685
--------------
CHEMICALS & ALLIED PRODUCTS - 3.81%
42,200 BARR PHARMACEUTICALS INCORPORATED+ 2,040,792
18,300 ECOLAB INCORPORATED 786,717
50,300 INVERNESS MEDICAL INNOVATIONS INCORPORATED+ 2,014,515
18,600 SHIRE PLC ADR 1,299,954
6,141,978
--------------
COMMUNICATIONS - 9.45%
170,900 LEVEL 3 COMMUNICATIONS INCORPORATED+<< 950,204
114,565 NEUSTAR INCORPORATED CLASS A+<< 3,294,889
98,974 NII HOLDINGS INCORPORATED+<< 7,596,255
35,100 SAVVIS INCORPORATED+ 1,810,107
54,200 SBA COMMUNICATIONS CORPORATION+ 1,594,564
15,246,019
--------------
DEPOSITORY INSTITUTIONS - 1.40%
26,500 FIRST COMMUNITY BANCORP 1,453,790
26,800 INDYMAC BANCORP INCORPORATED 810,432
2,264,222
--------------
28
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
EDUCATIONAL SERVICES - 0.67%
11,200 ITT EDUCATIONAL SERVICES INCORPORATED+ $ 1,088,752
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 5.07%
147,700 MICROSEMI CORPORATION+<< 3,413,347
94,000 PMC-SIERRA INCORPORATED+<< 726,620
18,000 ROCKWELL COLLINS INCORPORATED 1,182,060
45,811 SILICON LABORATORIES INCORPORATED+<< 1,503,059
24,800 THOMAS & BETTS CORPORATION+ 1,351,104
8,176,190
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 6.79%
41,001 ADVISORY BOARD COMPANY+ 1,946,727
26,500 GEN-PROBE INCORPORATED+ 1,354,415
45,300 IHS INCORPORATED+ 1,872,702
41,000 PHARMACEUTICAL PRODUCT DEVELOPMENT INCORPORATED 1,478,870
142,807 RESOURCES CONNECTION INCORPORATED+<< 4,308,487
10,961,201
--------------
FOOTWEAR - 0.53%
15,400 CROCS INCORPORATED+<< 860,552
--------------
GENERAL MERCHANDISE STORES - 0.50%
38,900 SAKS INCORPORATED+ 814,566
--------------
HEALTH SERVICES - 2.39%
35,600 BROOKDALE SENIOR LIVING INCORPORATED<< 1,616,596
63,800 PSYCHIATRIC SOLUTIONS INCORPORATED+ 2,237,466
3,854,062
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 3.05%
76,400 HILTON HOTELS CORPORATION 2,597,600
14,200 MGM MIRAGE+ 954,950
10,400 ORIENT EXPRESS HOTELS LIMITED CLASS A 547,560
14,300 VAIL RESORTS INCORPORATED+<< 815,386
4,915,496
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.20%
23,200 GAMESTOP CORPORATION CLASS A+ 769,544
33,400 GARDNER DENVER INCORPORATED+ 1,262,520
42,800 VERIFONE HOLDINGS INCORPORATED+<< 1,510,412
3,542,476
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 5.62%
45,200 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 1,412,048
19,200 C.R. BARD INCORPORATED 1,596,096
48,300 DENTSPLY INTERNATIONAL INCORPORATED 1,613,703
32,500 DRS TECHNOLOGIES INCORPORATED 1,635,075
13,200 METTLER-TOLEDO INTERNATIONAL INCORPORATED+ 1,288,584
31,100 QUEST DIAGNOSTICS INCORPORATED 1,520,479
9,065,985
--------------
MEDICAL EQUIPMENT & SUPPLIES - 3.88%
76,400 CYTYC CORPORATION+ 2,691,572
76,426 KYPHON INCORPORATED+<< 3,562,216
6,253,788
--------------
29
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEDICAL MANAGEMENT SERVICES - 2.55%
27,300 COVENTRY HEALTH CARE INCORPORATED+ $ 1,578,759
32,600 MEDCO HEALTH SOLUTIONS INCORPORATED+ 2,543,452
4,122,211
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.57%
18,000 ARMSTRONG WORLD INDUSTRIES INCORPORATED+ 918,000
--------------
MISCELLANEOUS RETAIL - 2.79%
80,899 PRICELINE.COM INCORPORATED+<< 4,501,220
--------------
OIL & GAS EXTRACTION - 7.17%
22,500 ENSCO INTERNATIONAL INCORPORATED 1,268,550
27,700 NOBLE CORPORATION 2,332,617
130,500 PETROHAWK ENERGY CORPORATION+<< 1,885,725
82,850 RANGE RESOURCES CORPORATION<< 3,028,168
22,100 ROWAN COMPANIES INCORPORATED 809,744
84,700 TETRA TECHNOLOGIES INCORPORATED+<< 2,243,703
11,568,507
--------------
PERSONAL SERVICES - 0.65%
21,700 WEIGHT WATCHERS INTERNATIONAL INCORPORATED 1,041,383
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.10%
90,545 VISTAPRINT LIMITED+<< 3,384,572
--------------
REAL ESTATE - 2.21%
103,930 CB RICHARD ELLIS GROUP INCORPORATED CLASS A+<< 3,518,031
2,054 HUGOTON ROYALTY TRUST 54,636
3,572,667
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 3.00%
6,900 CBOT HOLDINGS INCORPORATED CLASS A+<< 1,301,823
2,600 INTERCONTINENTAL EXCHANGE INCORPORATED+ 330,200
44,400 JEFFERIES GROUP INCORPORATED<< 1,407,480
33,200 LAZARD LIMITED 1,797,780
4,837,283
--------------
THEATERS & ENTERTAINMENT - 1.05%
77,700 REGAL ENTERTAINMENT GROUP CLASS A 1,689,975
--------------
TRANSPORTATION EQUIPMENT - 5.85%
45,500 ITT CORPORATION 2,903,355
59,200 OSHKOSH TRUCK CORPORATION 3,311,648
31,800 TEXTRON INCORPORATED 3,233,106
9,448,109
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.48%
15,000 TRACTOR SUPPLY COMPANY+<< 776,100
--------------
WHOLESALE TRADE-DURABLE GOODS - 2.41%
40,500 PATTERSON COMPANIES INCORPORATED+ 1,460,430
38,424 WESCO INTERNATIONAL INCORPORATED+ 2,427,245
3,887,675
--------------
Total Common Stocks (Cost $133,702,604) 155,166,461
--------------
30
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 28.93%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.14%
212,865 SCUDDER DAILY ASSETS MONEY MARKET FUND $ 212,865
10,775 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 10,775
223,640
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 28.79%
$ 127,719 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37% 05/14/2008 127,724
653,850 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 654,098
155,363 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 154,706
354,775 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 354,807
354,775 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 354,810
1,064,324 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 1,064,388
567,640 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT 5.36 05/01/2007 567,640
(MATURITY VALUE $567,725)
567,640 BUCKINGHAM II CDO LLC 5.31 05/29/2007 565,324
170,292 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 169,548
283,820 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 283,737
283,820 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 282,290
354,775 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 353,636
141,910 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 141,207
212,865 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 211,471
368,966 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 366,228
596,022 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 589,865
405,692 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 404,804
709,549 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 705,725
470,573 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 469,199
194,516 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 193,327
269,629 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 267,903
51,471 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 51,149
141,910 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 140,464
297,301 CHARTA LLC++ 5.31 06/22/2007 295,051
141,910 CHEYNE FINANCE LLC 5.29 06/19/2007 140,898
922,414 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 922,239
63,292 CHEYNE FINANCE LLC 5.30 05/14/2007 63,172
354,775 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 354,800
141,910 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 141,904
151,631 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 151,676
156,456 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 156,517
4,257,296 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $4,257,930) 5.36 05/01/2007 4,257,296
184,483 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 182,201
70,955 COMERICA BANK+/- 5.32 02/08/2008 70,835
573,316 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 572,479
1,135,279 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 1,131,964
354,775 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 354,686
709,549 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 709,542
532,162 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 531,076
212,865 DEER VALLEY FUNDING LLC 5.31 05/07/2007 212,680
31
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 549,518 DEER VALLEY FUNDING LLC++ 5.31% 05/10/2007 $ 548,798
354,775 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 353,895
68,784 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 68,583
515,062 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 511,462
3,106,778 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $3,107,241) 5.36 05/01/2007 3,106,778
709,549 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 709,599
92,554 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 91,664
177,316 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 177,347
397,348 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 395,726
354,775 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 354,778
28,382 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 28,383
496,685 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 496,719
922,414 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 922,414
354,775 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 354,821
85,146 K2 (USA) LLC+/-++ 5.30 07/16/2007 85,153
141,910 K2 (USA) LLC+/-++ 5.33 09/28/2007 141,910
43,169 KESTREL FUNDING US LLC 5.27 05/21/2007 43,043
780,504 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 780,481
645,264 KESTREL FUNDING US LLC++ 5.30 06/28/2007 639,818
709,549 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 704,178
95,690 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 94,673
425,730 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 420,774
255,438 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 252,352
870,461 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 859,815
216,994 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 216,552
198,972 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 198,942
177,387 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 177,386
48,335 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 48,243
922,414 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 921,068
400,370 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 399,145
1,021,751 LIQUID FUNDING LIMITED 5.30 05/07/2007 1,020,862
42,573 LIQUID FUNDING LIMITED 5.31 07/30/2007 42,015
908,223 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 908,223
299,430 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 299,550
354,775 MORGAN STANLEY+/- 5.31 07/12/2007 354,775
354,775 MORGAN STANLEY+/- 5.38 08/07/2007 354,775
520,951 MORGAN STANLEY+/- 5.48 07/27/2007 521,087
3,141,027 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $3,141,495) 5.36 05/01/2007 3,141,027
65,633 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 65,639
56,764 NATIONAL CITY BANK+/- 5.41 09/04/2007 56,771
406,785 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 406,935
264,875 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 264,565
709,549 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 709,592
204,970 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 204,970
70,955 PICAROS FUNDING PLC++ 5.27 06/22/2007 70,418
32
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 404,443 PREMIUM ASSET TRUST+/-++ 5.47% 12/21/2007 $ 405,009
354,775 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 354,775
269,629 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 269,629
57,403 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 57,415
178,395 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 178,031
510,876 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 510,794
326,393 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 326,393
56,764 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 55,848
283,820 SLM CORPORATION+/-++ 5.33 05/12/2008 283,434
397,348 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 397,499
283,820 TANGO FINANCE CORPORATION 5.32 07/31/2007 280,068
82,038 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 82,036
354,775 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 354,796
354,775 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 354,800
141,910 VERSAILLES CDS LLC++ 5.31 05/11/2007 141,703
709,549 VETRA FINANCE CORPORATION 5.28 06/12/2007 705,214
100,316 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 100,125
325,868 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 322,453
29,957 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 29,849
46,458,641
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $46,682,281) 46,682,281
--------------
SHARES
RIGHTS - 0.00%
31,200 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
--------------
SHORT-TERM INVESTMENTS - 4.83%
7,799,772 WELLS FARGO ADVANTAGE MONEY MARKET TRUST ~+++ 7,799,772
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,799,772) 7,799,772
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $188,184,657)* 129.91% $ 209,648,514
OTHER ASSETS AND LIABILITIES, NET (29.91) (48,272,176)
------ --------------
TOTAL NET ASSETS 100.00% $ 161,376,338
====== ==============
+ 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.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
(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 $7,799,772.
* 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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 96.46%
AMUSEMENT & RECREATION SERVICES - 1.53%
63,000 PINNACLE ENTERTAINMENT INCORPORATED+ $ 1,769,040
169,150 TOWN SPORTS INTERNATIONAL HOLDINGS INCORPORATED+ 3,854,929
5,623,969
--------------
APPAREL & ACCESSORY STORES - 0.78%
54,400 CHILDREN'S PLACE RETAIL STORES INCORPORATED+ 2,876,128
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.60%
125,050 G-III APPAREL GROUP LIMITED+ 2,208,383
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 1.68%
196,113 WRIGHT EXPRESS CORPORATION+ 6,179,521
--------------
BUSINESS SERVICES - 24.14%
313,979 24/7 REAL MEDIA INCORPORATED<<+ 3,124,091
56,400 AMERICAN REPROGRAPHICS COMPANY+ 1,872,480
184,500 AQUANTIVE INCORPORATED<<+ 5,647,545
136,900 BANKRATE INCORPORATED<<+ 5,526,653
4,600 CAPELLA EDUCATION COMPANY+ 160,770
303,500 CNET NETWORKS INCORPORATED+ 2,558,505
96,500 COGENT COMMUNICATIONS GROUP INCORPORATED+ 2,456,890
132,500 DEALERTRACK HOLDINGS INCORPORATED+ 4,372,500
43,400 DIGITAL RIVER INCORPORATED+ 2,540,202
35,152 DOUBLE-TAKE SOFTWARE INCORPORATED+ 589,499
108,000 ECOLLEGE.COM INCORPORATED<<+ 2,000,160
198,100 EPICOR SOFTWARE CORPORATION+ 2,872,450
461,400 GLOBAL CASH ACCESS INCORPORATED+ 7,230,138
36,815 HURON CONSULTING GROUP INCORPORATED+ 2,229,148
405,400 LAWSON SOFTWARE INCORPORATED<<+ 3,608,060
266,157 MARCHEX INCORPORATED CLASS B<< 3,404,148
468,582 ON ASSIGNMENT INCORPORATED+ 5,238,747
17,900 PORTFOLIO RECOVERY ASSOCIATES INCORPORATED+ 996,135
392,559 SECURE COMPUTING CORPORATION+ 3,179,728
211,161 SI INTERNATIONAL INCORPORATED+ 5,587,320
969,898 SKILLSOFT PLC ADR+ 7,827,077
183,300 SYKES ENTERPRISES INCORPORATED+ 3,383,718
281,389 TALEO CORPORATION CLASS A+ 4,291,182
177,800 THE TRIZETTO GROUP INCORPORATED<<+ 3,463,544
87,700 TRANSACTION SYSTEMS ARCHITECTS INCORPORATED+ 2,782,721
61,990 VALUECLICK INCORPORATED<<+ 1,772,914
88,716,325
--------------
CHEMICALS & ALLIED PRODUCTS - 3.72%
114,950 INVERNESS MEDICAL INNOVATIONS INCORPORATED+ 4,603,748
127,500 MEDICINES COMPANY+ 2,904,450
151,900 MGI PHARMA INCORPORATED+ 3,344,838
113,666 SCIELE PHARMA INCORPORATED<<+ 2,809,824
13,662,860
--------------
COMMUNICATIONS - 4.88%
117,076 CBEYOND INCORPORATED<<+ 4,071,903
325,700 DOBSON COMMUNICATIONS CORPORATION<<+ 2,967,127
85,200 LODGENET ENTERTAINMENT CORPORATION+ 2,903,616
197,758 NEUSTAR INCORPORATED CLASS A<<+ 5,687,520
198,100 ORBCOMM INCORPORATED<<+ 2,292,017
17,922,183
--------------
34
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
DEPOSITORY INSTITUTIONS - 0.55%
62,100 WESTERN ALLIANCE BANCORP<<+ $ 2,002,104
--------------
EATING & DRINKING PLACES - 1.91%
65,591 CALIFORNIA PIZZA KITCHEN INCORPORATED+ 2,191,395
151,300 RUTH'S CHRIS STEAK HOUSE INCORPORATED+ 3,003,305
81,600 SONIC CORPORATION+ 1,831,104
7,025,804
--------------
EDUCATIONAL SERVICES - 1.92%
132,800 CORINTHIAN COLLEGES INCORPORATED+ 1,836,624
41,900 STRAYER EDUCATION INCORPORATED<< 5,209,846
7,046,470
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 6.30%
183,500 HOUSTON WIRE & CABLE COMPANY<<+ 5,409,580
335,800 MICROSEMI CORPORATION<<+ 7,760,338
215,500 PMC-SIERRA INCORPORATED<<+ 1,665,815
104,089 SILICON LABORATORIES INCORPORATED<<+ 3,415,160
98,700 SIRENZA MICRODEVICES INCORPORATED<<+ 899,157
185,045 UNIVERSAL DISPLAY CORPORATION<<+ 2,883,001
69,500 VOLTERRA SEMICONDUCTOR CORPORATION<<+ 1,098,795
23,131,846
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 5.66%
93,744 ADVISORY BOARD COMPANY+ 4,450,965
267,794 EXELIXIS INCORPORATED+ 2,876,108
89,600 IHS INCORPORATED+ 3,704,064
324,024 RESOURCES CONNECTION INCORPORATED<<+ 9,775,804
20,806,941
--------------
FINANCIAL INSTITUTIONS - 0.57%
72,000 DOLLAR FINANCIAL CORPORATION+ 2,098,080
--------------
FURNITURE & FIXTURES - 0.83%
137,700 WILLIAMS SCOTSMAN INTERNATIONAL INCORPORATED<<+ 3,033,531
--------------
HEALTH SERVICES - 3.29%
195,251 INVENTIV HEALTH INCORPORATED+ 7,409,775
85,300 PSYCHIATRIC SOLUTIONS INCORPORATED+ 2,991,471
57,700 RADIATION THERAPY SERVICES INCORPORATED<<+ 1,696,957
12,098,203
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.62%
48,068 GAYLORD ENTERTAINMENT COMPANY<<+ 2,634,126
312,600 GREAT WOLF RESORTS INCORPORATED<<+ 3,966,894
23,672 ORIENT EXPRESS HOTELS LIMITED CLASS A 1,246,331
140,400 RED LION HOTELS CORPORATION+ 1,790,100
9,637,451
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 4.55%
74,695 ACTUANT CORPORATION CLASS A<< 3,958,835
246,604 GARDNER DENVER INCORPORATED+ 9,321,631
72,600 KAYDON CORPORATION<< 3,450,678
16,731,144
--------------
35
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 1.99%
109,900 FIRST MERCURY FINANCIAL CORPORATION+ $ 2,274,930
51,178 THE NAVIGATORS GROUP INCORPORATED+ 2,614,684
79,050 TOWER GROUP INCORPORATED 2,426,045
7,315,659
--------------
LEGAL SERVICES - 1.96%
195,500 FTI CONSULTING INCORPORATED<<+ 7,188,535
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 7.27%
251,400 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED<<+ 4,457,322
276,292 CALIPER LIFE SCIENCES INCORPORATED+ 1,563,813
193,371 DJ ORTHOPEDICS INCORPORATED+ 7,553,071
588,118 IXIA+ 5,046,052
192,200 SENORX INCORPORATED+ 1,527,990
228,669 SPECTRANETICS CORPORATION<<+ 2,371,298
158,702 STEREOTAXIS INCORPORATED<<+ 1,652,088
149,900 SYMMETRY MEDICAL INCORPORATED+ 2,546,801
26,718,435
--------------
MEDICAL EQUIPMENT & SUPPLIES - 2.56%
161,593 KYPHON INCORPORATED<<+ 7,531,850
137,400 NORTHSTAR NEUROSCIENCE INCORPORATED 1,871,388
9,403,238
--------------
MISCELLANEOUS RETAIL - 6.30%
39,500 BLUE NILE INCORPORATED<<+ 1,858,870
46,000 COLDWATER CREEK INCORPORATED+ 952,200
221,100 GSI COMMERCE INCORPORATED<<+ 4,886,310
184,857 PRICELINE.COM INCORPORATED<<+ 10,285,443
265,484 SHUTTERFLY INCORPORATED<<+ 4,311,460
21,600 ZUMIEZ INCORPORATED<<+ 852,336
23,146,619
--------------
OIL & GAS EXTRACTION - 3.01%
258,430 PETROHAWK ENERGY CORPORATION<<+ 3,734,314
188,600 TETRA TECHNOLOGIES INCORPORATED<<+ 4,996,014
121,350 VENOCO INCORPORATED+ 2,308,077
11,038,405
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.86%
229,331 INNERWORKINGS INCORPORATED<<+ 2,813,891
206,036 VISTAPRINT LIMITED<<+ 7,701,626
10,515,517
--------------
REAL ESTATE - 0.75%
172,644 HFF INCORPORATED CLASS A+ 2,758,851
--------------
TEXTILE MILL PRODUCTS - 0.46%
36,600 OXFORD INDUSTRIES INCORPORATED<< 1,698,972
--------------
TRANSPORTATION BY AIR - 0.52%
173,900 AIRTRAN HOLDINGS INCORPORATED<<+ 1,914,639
--------------
WHOLESALE TRADE-DURABLE GOODS - 3.25%
120,600 BARNES GROUP INCORPORATED<< 2,930,580
222,900 INTERLINE BRANDS INCORPORATED+ 4,872,594
36
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WHOLESALE TRADE-DURABLE GOODS (CONTINUED)
205,889 PSS WORLD MEDICAL INCORPORATED<<+ $ 4,138,369
11,941,543
--------------
TOTAL COMMON STOCKS (COST $318,821,987) 354,441,356
--------------
COLLATERAL FOR SECURITIES LENDING - 37.48%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.18%
627,940 SCUDDER DAILY ASSETS MONEY MARKET FUND 627,940
31,786 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 31,786
659,726
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 37.30%
$ 376,764 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37% 05/14/2008 376,779
1,928,823 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 1,929,555
458,313 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 456,374
1,046,567 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 1,046,661
1,046,567 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 1,046,671
3,139,700 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 3,139,889
1,674,507 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $1,674,756) 5.36 05/01/2007 1,674,507
1,674,507 BUCKINGHAM II CDO LLC 5.31 05/29/2007 1,667,675
502,352 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 500,157
837,253 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 837,011
837,253 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 832,741
1,046,567 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 1,043,207
418,627 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 416,554
627,940 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 623,827
1,088,429 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 1,080,353
1,758,232 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 1,740,070
1,196,770 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 1,194,149
2,093,133 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 2,081,851
1,388,166 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 1,384,113
573,812 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 570,306
795,391 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 790,300
151,836 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 150,885
418,627 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 414,361
877,023 CHARTA LLC++ 5.31 06/22/2007 870,384
418,627 CHEYNE FINANCE LLC 5.29 06/19/2007 415,642
2,721,074 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 2,720,557
186,708 CHEYNE FINANCE LLC 5.30 05/14/2007 186,353
1,046,567 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 1,046,640
418,627 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 418,610
447,303 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 447,437
461,536 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 461,716
12,558,801 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $12,560,671) 5.36 05/01/2007 12,558,801
544,215 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 537,483
209,313 COMERICA BANK+/- 5.32 02/08/2008 208,960
1,691,252 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 1,688,783
37
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 3,349,014 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31% 05/21/2007 $ 3,339,234
1,046,567 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 1,046,305
2,093,133 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 2,093,113
1,569,850 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 1,566,648
627,940 DEER VALLEY FUNDING LLC 5.31 05/07/2007 627,394
1,621,048 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 1,618,925
1,046,567 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 1,043,971
202,908 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 202,316
1,519,406 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 1,508,785
9,164,831 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $9,166,196) 5.36 05/01/2007 9,164,831
2,093,133 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 2,093,280
273,028 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 270,405
523,074 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 523,163
1,172,155 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 1,167,372
1,046,567 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 1,046,577
83,725 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 83,727
1,465,193 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 1,465,296
2,721,074 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 2,721,074
1,046,567 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 1,046,703
251,176 K2 (USA) LLC+/-++ 5.30 07/16/2007 251,196
418,627 K2 (USA) LLC+/-++ 5.33 09/28/2007 418,627
127,346 KESTREL FUNDING US LLC 5.27 05/21/2007 126,974
2,302,447 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 2,302,378
1,903,496 KESTREL FUNDING US LLC++ 5.30 06/28/2007 1,887,430
2,093,133 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 2,077,288
282,280 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 279,279
1,255,880 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 1,241,262
753,528 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 744,425
2,567,814 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 2,536,410
640,122 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 638,816
586,956 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 586,868
523,283 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 523,278
142,584 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 142,313
2,721,074 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 2,717,101
1,181,072 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 1,177,457
3,014,112 LIQUID FUNDING LIMITED 5.30 05/07/2007 3,011,490
125,588 LIQUID FUNDING LIMITED 5.31 07/30/2007 123,943
2,679,211 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 2,679,211
883,302 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 883,656
1,046,567 MORGAN STANLEY+/- 5.31 07/12/2007 1,046,567
1,046,567 MORGAN STANLEY+/- 5.38 08/07/2007 1,046,567
1,536,779 MORGAN STANLEY+/- 5.48 07/27/2007 1,537,178
9,265,864 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $9,267,244) 5.36 05/01/2007 9,265,864
193,615 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 193,630
167,451 NATIONAL CITY BANK+/- 5.41 09/04/2007 167,471
1,199,993 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 1,200,437
781,367 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 780,453
2,093,133 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 2,093,259
38
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 604,651 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30% 05/15/2007 $ 604,651
209,313 PICAROS FUNDING PLC++ 5.27 06/22/2007 207,729
1,193,086 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 1,194,756
1,046,567 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 1,046,567
795,391 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 795,391
169,335 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 169,372
526,256 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 525,182
1,507,056 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 1,506,815
962,841 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 962,841
167,451 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 164,750
837,253 SLM CORPORATION+/-++ 5.33 05/12/2008 836,115
1,172,155 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 1,172,600
837,253 TANGO FINANCE CORPORATION 5.32 07/31/2007 826,185
242,008 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 242,003
1,046,567 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 1,046,630
1,046,567 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 1,046,640
418,627 VERSAILLES CDS LLC++ 5.31 05/11/2007 418,016
2,093,133 VETRA FINANCE CORPORATION 5.28 06/12/2007 2,080,344
295,927 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 295,365
961,292 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 951,218
88,372 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 88,073
137,050,552
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $137,710,278) 137,710,278
--------------
SHARES EXPIRATION DATE
WARRANTS - 0.00%
108 IMPERIAL CREDIT INDUSTRY+(A) 01/31/08 0
TOTAL WARRANTS (COST $0) 0
--------------
SHORT-TERM INVESTMENTS - 3.54%
13,035,793 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 13,035,793
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $13,035,793) 13,035,793
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $469,568,058)* 137.48% $ 505,187,427
OTHER ASSETS AND LIABILITIES, NET (37.48) (137,732,826)
------ --------------
TOTAL NET ASSETS 100.00% $ 367,454,601
====== ==============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+ NON-INCOME EARNING SECURITIES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
(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 $13,035,793.
* 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.
39
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 86.28%
AMUSEMENT & RECREATION SERVICES - 0.25%
77,200 PINNACLE ENTERTAINMENT INCORPORATED+ $ 2,167,776
--------------
APPAREL & ACCESSORY STORES - 2.34%
401,700 CLAIRE'S STORES INCORPORATED 13,083,369
321,700 TALBOTS INCORPORATED<< 7,559,950
20,643,319
--------------
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.51%
133,400 STANDARD PARKING CORPORATION<<+ 4,499,582
--------------
BIOPHARMACEUTICALS - 0.49%
187,700 HUMAN GENOME SCIENCES INCORPORATED<<+ 2,021,529
156,100 MANNKIND CORPORATION<<+ 2,269,694
4,291,223
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 0.73%
152,100 PERINI CORPORATION+ 6,479,460
--------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS - 0.35%
205,700 CENTRAL GARDEN & PET COMPANY<<+ 3,046,417
--------------
BUSINESS SERVICES - 11.29%
183,200 AARON RENTS INCORPORATED 5,197,384
137,000 BRIGHT HORIZONS FAMILY SOLUTIONS INCORPORATED+ 5,290,940
142,800 CSG SYSTEMS INTERNATIONAL INCORPORATED<<+ 3,824,184
75,800 F5 NETWORKS INCORPORATED<<+ 5,819,924
316,400 GARTNER INCORPORATED<<+ 7,982,772
172,950 H&E EQUIPMENT SERVICES INCORPORATED+ 4,091,997
103,600 HEIDRICK & STRUGGLES INTERNATIONAL INCORPORATED+ 4,887,848
917,600 INFORMATICA CORPORATION<<+ 13,507,072
143,400 MACQUARIE INFRASTRUCTURE COMPANY TRUST 6,105,972
282,400 ONLINE RESOURCES CORPORATION<<+ 3,117,696
387,000 PARAMETRIC TECHNOLOGY CORPORATION+ 6,876,990
202,500 PENNANTPARK INVESTMENT CORPORATION<<+ 3,033,450
169,600 RENT-A-CENTER INCORPORATED<<+ 4,721,664
298,500 RIGHTNOW TECHNOLOGIES INCORPORATED<<+ 4,435,710
683,300 SONICWALL INCORPORATED+ 5,575,728
121,200 THQ INCORPORATED<<+ 4,044,444
218,600 VALUECLICK INCORPORATED<<+ 6,251,960
118,800 VIAD CORPORATION 4,851,792
99,617,527
--------------
CHEMICALS & ALLIED PRODUCTS - 6.20%
266,600 ANIMAL HEALTH INTERNATIONAL INCORPORATED+ 3,561,776
267,500 ARRAY BIOPHARMA INCORPORATED<<+ 3,731,625
169,700 BIOMARIN PHARMACEUTICAL INCORPORATED<<+ 2,742,352
115,200 FMC CORPORATION 8,862,336
121,687 IMMUCOR INCORPORATED+ 3,970,647
265,600 KOOPER HOLDINGS INCORPORATED 7,686,464
137,800 MEDICIS PHARMACEUTICAL CORPORATION CLASS A<< 4,189,120
188,500 NASTECH PHARMACEUTICAL COMPANY INCORPORATED<<+ 2,486,315
617,900 PERRIGO COMPANY 11,740,100
439,300 SALIX PHARMACEUTICALS LIMITED<<+ 5,719,686
54,690,421
--------------
40
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMUNICATIONS - 2.63%
207,300 CLEAR CHANNEL OUTDOOR HOLDINGS INCORPORATED<<+ $ 5,918,415
140,100 CONSOLIDATED COMMUNICATIONS ILLINOIS HOLDINGS INCORPORATED 2,786,589
295,500 ESCHELON TELECOM INCORPORATED+ 8,655,195
110,200 PAETEC HOLDING CORPORATION<<+ 1,149,386
228,600 TIME WARNER TELECOM INCORPORATED<<+ 4,686,300
23,195,885
--------------
COMMUNICATIONS EQUIPMENT - 1.01%
191,600 COMMSCOPE INCORPORATED<<+ 8,938,140
--------------
DEPOSITORY INSTITUTIONS - 4.90%
235,100 BANK OF HAWAII CORPORATION 12,436,790
107,500 BERKSHIRE HILLS BANCORP INCORPORATED 3,465,800
93,497 CULLEN FROST BANKERS INCORPORATED 4,784,241
299,510 CVB FINANCIAL CORPORATION 3,555,184
249,400 EURONET WORLDWIDE INCORPORATED<<+ 6,945,790
65,200 SVB FINANCIAL GROUP<<+ 3,339,544
601,500 TAC ACQUISITION CORPORATION<<+(a) 60
185,500 WESTAMERICA BANCORPORATION<< 8,686,965
43,214,374
--------------
EATING & DRINKING PLACES - 0.89%
271,100 RARE HOSPITALITY INTERNATIONAL INCORPORATED<<+ 7,894,432
--------------
ELECTRIC, GAS & SANITARY SERVICES - 2.50%
82,300 ITC HOLDINGS CORPORATION 3,463,184
63,400 ORMAT TECHNOLOGIES INCORPORATED<< 2,313,466
136,550 PNM RESOURCES INCORPORATED 4,444,703
114,800 UNISOURCE ENERGY CORPORATION 4,409,468
238,550 WASTE CONNECTIONS INCORPORATED<<+ 7,435,604
22,066,425
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 4.38%
373,000 ARRIS GROUP INCORPORATED<<+ 5,527,860
1,197,800 FINISAR CORPORATION<<+ 4,336,036
343,800 GSI TECHNOLOGY INCORPORATED+ 1,856,520
107,600 HEXEL CORPORATION<<+ 2,334,920
217,500 INTEGRATED DEVICE TECHNOLOGY INCORPORATED+ 3,258,150
238,800 IPG PHOTONICS CORPORATION+ 4,343,772
379,700 MICROSEMI CORPORATION<<+ 8,774,867
519,800 VOLTERRA SEMICONDUCTOR CORPORATION<<+ 8,218,038
38,650,163
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 2.90%
313,000 DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS INCORPORATED 3,549,420
176,800 INFRASOURCE SERVICES INCORPORATED+ 5,901,584
159,800 LUMINEX CORPORATION+ 2,213,230
320,000 MTC TECHNOLOGIES INCORPORATED+ 6,611,200
154,600 WATSON WYATT & COMPANY HOLDINGS 7,286,298
25,561,732
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 1.13%
89,500 MOBILE MINI INCORPORATED<<+ 2,682,315
225,500 SHAW GROUP INCORPORATED+ 7,312,965
9,995,280
--------------
41
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS - 0.80%
124,500 FLOWERS FOODS INCORPORATED $ 3,883,155
234,300 SENOMYX INCORPORATED<<+ 3,156,021
7,039,176
--------------
HEALTH SERVICES - 1.96%
168,000 DIALYSIS CORPORATION OF AMERICA+ 1,957,200
124,600 PSYCHIATRIC SOLUTIONS INCORPORATED+ 4,369,722
449,000 SUN HEALTHCARE GROUP INCORPORATED+ 5,630,460
243,044 SYMBION INCORPORATED+ 5,327,524
17,284,906
--------------
HOLDING & OTHER INVESTMENT OFFICES - 2.46%
350,450 ANNALY MORTGAGE MANAGEMENT INCORPORATED 5,575,660
159,000 CRYSTAL RIVER CAPITAL INCORPORATED 4,176,930
111,000 DIGITAL REALITY TRUST INCORPORATED<< 4,489,950
311,900 NATIONAL RETAIL PROPERTIES INCORPORATED 7,470,005
21,712,545
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 0.64%
121,100 GUITAR CENTER INCORPORATED<<+ 5,606,930
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.19%
48,700 HOME INNS & HOTELS MANAGEMENT ADR<<+ 1,668,949
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 9.57%
98,400 ACTUANT CORPORATION CLASS A<< 5,215,200
352,600 CRAY INCORPORATED+ 4,389,870
628,300 DRESSER RAND GROUP INCORPORATED+ 20,049,053
671,100 EMULEX CORPORATION+ 14,079,678
78,400 IDEX CORPORATION 4,113,648
112,900 INTERMEC INCORPORATED<<+ 2,521,057
82,500 MANITOWOC COMPANY INCORPORATED 5,628,975
100,500 RITCHIE BROTHERS AUCTIONEERS INCORPORATED 5,937,540
520,400 SCIENTIFIC GAMES CORPORATION CLASS A<<+ 17,324,116
194,229 SHAW INDUSTRIES LIMITED CLASS A 5,164,157
84,423,294
--------------
INSURANCE CARRIERS - 4.21%
447,600 CONSECO INCORPORATED+ 7,918,044
132,542 ENDURANCE SPECIALTY HOLDINGS LIMITED 4,959,722
328,253 MAX CAPITAL GROUP LIMITED 8,797,180
35,100 MOLINA HEALTHCARE INCORPORATED+ 1,060,722
231,700 REINSURANCE GROUP OF AMERICA INCORPORATED<< 14,437,227
37,172,895
--------------
JUSTICE, PUBLIC ORDER & SAFETY - 1.21%
209,200 GEO GROUP INCORPORATED+ 10,711,040
--------------
LOCAL & SUB-TRANSIT & INTERURBAN HIGHWAY PASS TRANSPORTATION - 0.43%
111,400 LAIDLAW INTERNATIONAL INCORPORATED 3,815,450
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 6.80%
474,000 BRUKER BIOSCIENCES CORPORTION+ 5,455,740
436,400 CEPHEID INCORPORATED<<+ 4,948,776
144,000 COOPER COMPANIES INCORPORATED<< 7,358,400
42
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS (CONTINUED)
214,400 DJ ORTHOPEDICS INCORPORATED<<+ $ 8,374,464
77,500 DRS TECHNOLOGIES INCORPORATED 3,899,025
212,400 FEI COMPANY<<+ 7,901,280
4,800 HAEMONETICS CORPORATION+ 229,632
151,400 POLYMEDICA CORPORATION<< 6,122,616
147,700 SIRONA DENTAL SYSTEMS INCORPORATED<<+ 4,875,577
148,800 TEKTRONIX INCORPORATED 4,373,232
32,700 VARIAN INCORPORATED+ 1,895,292
249,400 VEECO INSTRUMENTS INCORPORATED<<+ 4,559,032
59,993,066
--------------
MEDICAL EQUIPMENT & SUPPLIES - 0.04%
7,500 KYPHON INCORPORATED+ 349,575
--------------
METAL MINING - 0.91%
79,400 AGNICO-EAGLE MINES LIMITED<< 2,801,232
184,300 PAN AMERICAN SILVER CORPORATION+ 5,206,475
8,007,707
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.61%
388,100 ACCO BRANDS CORPORATION<<+ 9,236,780
347,600 CENTRAL GARDEN & PET COMPANY CLASS A<<+ 4,977,632
14,214,412
--------------
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.32%
358,403 APOLLO INVESTMENT CORPORATION<< 7,874,114
104,700 COMPUCREDIT CORPORATION<<+ 3,785,952
11,660,066
--------------
OIL & GAS EXTRACTION - 3.05%
176,455 BIRCHCLIFF ENERGY LIMITED+ 723,372
160,594 DENBURY RESOURCES INCORPORATED+ 5,314,055
345,510 GALLEON ENERGY INCORPORATED A+ 5,043,033
260,800 HANOVER COMPRESSOR COMPANY<<+ 5,641,104
181,800 ST. MARY LAND & EXPLORATION COMPANY 6,657,516
149,111 WILLBROS GROUP INCORPORATED<<+ 3,527,966
26,907,046
--------------
PERSONAL SERVICES - 0.56%
128,200 REGIS CORPORATION 4,901,086
--------------
PRIMARY METAL INDUSTRIES - 0.99%
167,700 SCHNITZER STEEL INDUSTRY 8,705,307
--------------
RAILROAD TRANSPORTATION - 0.45%
107,800 KANSAS CITY SOUTHERN<<+ 4,004,770
--------------
REAL ESTATE INVESTMENT TRUST (REIT) - 1.02%
198,611 HEALTH CARE REIT INCORPORATED 8,985,162
--------------
SOFTWARE - 0.41%
117,800 MANTECH INTERNATIONAL CORPORATION CLASS A+ 3,614,104
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.32%
64,200 CARBO CERAMICS INCORPORATED 2,789,490
--------------
43
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
TEXTILE MILL PRODUCTS - 0.96%
97,000 ALBANY INTERNATIONAL CORPORATION CLASS A<< $ 3,715,100
279,800 INTERFACE INCORPORATED 4,714,630
8,429,730
--------------
TRANSPORTATION BY AIR - 1.12%
128,100 AIR CANADA CLASS A+ 1,927,444
376,000 REPUBLIC AIRWAYS HOLDINGS INCORPORATED<<+ 7,993,760
9,921,204
--------------
WATER TRANSPORTATION - 1.42%
213,400 HORIZON LINES INCORPORATED 7,257,734
186,900 SEASPAN CORPORATION 5,248,152
12,505,886
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.74%
145,700 AIRGAS INCORPORATED 6,490,935
--------------
WHOLESALE TRADE-DURABLE GOODS - 0.59%
331,600 GENESIS MICROCHIP INCORPORATED+ 2,845,126
102,600 LKQ CORPORATION+ 2,316,710
5,161,836
--------------
TOTAL COMMON STOCKS (COST $622,983,519) 761,028,723
--------------
INVESTMENT COMPANIES - 0.73%
53,800 ISHARES RUSSELL 2000 INDEX FUND<< 4,343,812
125,388 TECHNOLOGY INVESTMENT CAPITAL CORPORATION<< 2,120,311
TOTAL INVESTMENT COMPANIES (COST $6,172,142) 6,464,123
--------------
COLLATERAL FOR SECURITIES LENDING - 24.91%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.12%
1,001,852 SCUDDER DAILY ASSETS MONEY MARKET FUND 1,001,852
50,714 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 50,714
1,052,566
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 24.79%
$ 601,111 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37% 05/14/2008 601,135
3,077,355 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 3,078,525
731,218 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 728,125
1,669,753 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 1,669,904
1,669,753 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 1,669,920
5,009,260 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 5,009,561
2,671,605 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $2,672,003) 5.36 05/01/2007 2,671,605
2,671,605 BUCKINGHAM II CDO LLC 5.31 05/29/2007 2,660,705
801,482 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 797,979
1,335,803 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 1,335,415
1,335,803 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 1,328,603
1,669,753 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 1,664,393
667,901 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 664,595
1,001,852 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 995,290
44
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 1,736,543 CAIRN HIGH GRADE FUNDING I LLC++ 5.30% 06/21/2007 $ 1,723,658
2,805,186 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 2,776,208
1,909,396 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 1,905,215
3,339,507 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 3,321,507
2,214,761 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 2,208,294
915,492 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 909,899
1,269,013 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 1,260,891
242,248 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 240,731
667,901 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 661,095
1,399,253 CHARTA LLC++ 5.31 06/22/2007 1,388,661
667,901 CHEYNE FINANCE LLC 5.29 06/19/2007 663,139
4,341,359 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 4,340,534
297,884 CHEYNE FINANCE LLC 5.30 05/14/2007 297,318
1,669,753 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 1,669,870
667,901 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 667,875
713,653 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 713,867
736,361 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 736,648
20,037,040 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $20,040,023) 5.36 05/01/2007 20,037,040
868,272 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 857,531
333,951 COMERICA BANK+/- 5.32 02/08/2008 333,386
2,698,321 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 2,694,382
5,343,211 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 5,327,609
1,669,753 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 1,669,336
3,339,507 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 3,339,473
2,504,630 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 2,499,521
1,001,852 DEER VALLEY FUNDING LLC 5.31 05/07/2007 1,000,980
2,586,314 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 2,582,926
1,669,753 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 1,665,612
323,732 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 322,786
2,424,148 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 2,407,203
14,622,104 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $14,624,281) 5.36 05/01/2007 14,622,104
3,339,507 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 3,339,740
435,605 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 431,419
834,543 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 834,685
1,870,124 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 1,862,494
1,669,753 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 1,669,770
133,580 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 133,583
2,337,655 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 2,337,818
4,341,359 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 4,341,359
1,669,753 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 1,669,970
400,741 K2 (USA) LLC+/-++ 5.30 07/16/2007 400,773
667,901 K2 (USA) LLC+/-++ 5.33 09/28/2007 667,901
203,176 KESTREL FUNDING US LLC 5.27 05/21/2007 202,582
3,673,457 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 3,673,347
3,036,947 KESTREL FUNDING US LLC++ 5.30 06/28/2007 3,011,316
3,339,507 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 3,314,227
450,366 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 445,578
2,003,704 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 1,980,381
45
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 1,202,222 KLIO III FUNDING CORPORATION++ 5.32% 07/23/2007 $ 1,187,700
4,096,840 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 4,046,736
1,021,288 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 1,019,205
936,464 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 936,324
834,877 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 834,868
227,487 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 227,055
4,341,359 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 4,335,020
1,884,350 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 1,878,584
4,808,890 LIQUID FUNDING LIMITED 5.30 05/07/2007 4,804,706
200,370 LIQUID FUNDING LIMITED 5.31 07/30/2007 197,746
4,274,569 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 4,274,569
1,409,272 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 1,409,836
1,669,753 MORGAN STANLEY+/- 5.31 07/12/2007 1,669,753
1,669,753 MORGAN STANLEY+/- 5.38 08/07/2007 1,669,753
2,451,866 MORGAN STANLEY+/- 5.48 07/27/2007 2,452,503
4,783,298 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $14,785,499) 5.36 05/01/2007 14,783,298
308,904 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 308,929
267,161 NATIONAL CITY BANK+/- 5.41 09/04/2007 267,193
1,914,539 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 1,915,248
1,246,638 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 1,245,179
3,339,507 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 3,339,707
964,695 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 964,695
333,951 PICAROS FUNDING PLC++ 5.27 06/22/2007 331,423
1,903,519 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 1,906,184
1,669,753 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 1,669,753
1,269,013 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 1,269,013
270,166 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 270,225
839,619 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 837,906
2,404,445 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 2,404,060
1,536,173 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 1,536,173
267,161 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 262,851
1,335,803 SLM CORPORATION+/-++ 5.33 05/12/2008 1,333,986
1,870,124 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 1,870,834
1,335,803 TANGO FINANCE CORPORATION 5.32 07/31/2007 1,318,143
386,114 TRAVELLERS INSURANCE COMPANY+/- 5.39 02/08/2008 386,106
1,669,753 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 1,669,854
1,669,753 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 1,669,870
667,901 VERSAILLES CDS LLC++ 5.31 05/11/2007 666,926
3,339,507 VETRA FINANCE CORPORATION 5.28 06/12/2007 3,319,102
472,139 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 471,242
1,533,702 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 1,517,631
140,994 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 140,522
218,658,408
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $219,710,974) 219,710,974
--------------
46
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 12.45%
109,814,019 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ $ 109,814,019
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $109,814,019) 109,814,019
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $958,680,654)* 124.37% $ 1,097,017,839
OTHER ASSETS AND LIABILITIES, NET (24.37) (214,973,763)
------ ---------------
TOTAL NET ASSETS 100.00% $ 882,044,076
====== ===============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN.
+ NON-INCOME EARNING SECURITIES.
(a) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $109,814,019.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 94.31%
APPAREL & ACCESSORY STORES - 0.59%
79,700 PAYLESS SHOESOURCE INCORPORATED+ $ 2,542,430
510,600 TWEEN BRANDS INCORPORATED+ 19,995,096
22,537,526
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 0.34%
493,800 HANESBRANDS INCORPORATED+ 13,130,142
---------------
AUTOMOBILE - 0.12%
215,000 BRISTOL WEST HOLDINGS INCORPORATED 4,764,400
---------------
BUSINESS SERVICES - 6.97%
12,320,800 3COM CORPORATION+ 49,652,824
2,052,900 ABM INDUSTRIES INCORPORATED 57,768,606
1,391,200 COGNEX CORPORATION 29,980,360
567,800 DELUXE CORPORATION 21,491,230
733,000 ELECTRONICS FOR IMAGING INCORPORATED+ 19,549,110
805,600 EVERGREEN ENERGY INCORPORATED+ 4,857,768
452,200 HEALTHCARE SERVICES GROUP 12,661,600
1,951,322 KFORCE INCORPORATED+ 26,791,651
1,018,700 MPS GROUP INCORPORATED+ 13,946,003
25,000 SRA INTERNATIONAL INCORPORATED CLASS A+ 610,750
1,643,800 VIGNETTE CORPORATION+** 30,443,176
267,753,078
---------------
CHEMICALS & ALLIED PRODUCTS - 3.61%
1,332,800 ALPHARMA INCORPORATED CLASS A+ 32,387,040
1,054,000 CALGON CARBON CORPORATION+ 8,337,140
456,300 OM GROUP INCORPORATED+ 23,969,439
5,101,200 ORASURE TECHNOLOGIES INCORPORATED+** 38,003,940
1,693,900 PRESTIGE BRANDS HOLDINGS INCORPORATED+ 22,037,639
566,995 SALIX PHARMACEUTICALS LIMITED+ 7,382,275
2,097,300 WELLMAN INCORPORATED** 6,669,414
138,786,887
---------------
COMMUNICATIONS - 3.46%
1,851,840 CHINA GRENTECH CORPORATION LIMITED ADR+** 18,296,179
5,687,200 CINCINNATI BELL INCORPORATED+ 28,834,104
560,300 ENTRAVISION COMMUNICATIONS CORPORATION CLASS A+ 5,496,543
2,820,500 LIGHTBRIDGE INCORPORATED+** 49,753,620
2,652,960 MASTEC INCORPORATED+ 30,429,451
132,809,897
---------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 3.18%
3,179,600 CHICAGO BRIDGE & IRON COMPANY NV 110,109,548
144,500 LAYNE CHRISTENSEN COMPANY+ 5,472,215
261,600 MATRIX SERVICE COMPANY+ 6,383,040
121,964,803
---------------
DEPOSITORY INSTITUTIONS - 0.13%
203,900 THE COLONIAL BANCGROUP INCORPORATED 4,905,834
---------------
ELECTRIC, GAS & SANITARY SERVICES - 0.23%
595,800 EL PASO CORPORATION 8,937,000
---------------
48
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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 - 4.60%
3,227,700 ANDREW CORPORATION+ $ 35,246,489
6,124,800 FINISAR CORPORATION+ 22,171,776
3,803,000 GRAFTECH INTERNATIONAL LIMITED+ 37,953,940
1,215,300 NORTEL NETWORKS CORPORATION ADR+ 27,806,064
1,181,850 OSI SYSTEMS INCORPORATED+** 31,212,659
5,276,500 POWER-ONE INCORPORATED+** 22,477,890
176,868,818
---------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.21%
311,400 CDI CORPORATION 9,223,668
3,056,600 CV THERAPEUTICS INCORPORATED+** 25,767,138
558,400 INFINITY PHARMACEUTICALS INCORPORATED+ 5,863,200
480,000 SYMYX TECHNOLOGIES INCORPORATED+ 5,524,800
46,378,806
---------------
FOOD & KINDRED PRODUCTS - 1.34%
4,432,200 DEL MONTE FOODS COMPANY 51,413,520
---------------
GENERAL MERCHANDISE STORES - 0.59%
954,000 FOOT LOCKER INCORPORATED 22,695,660
---------------
HEALTH SERVICES - 3.66%
1,990,100 CROSS COUNTRY HEALTHCARE INCORPORATED+** 39,185,069
1,590,900 GENTIVA HEALTH SERVICES INCORPORATED+** 29,781,648
740,000 MANOR CARE INCORPORATED 48,018,600
1,232,400 MDS INCORPORATED+ 23,403,276
140,388,593
---------------
HOLDING & OTHER INVESTMENT OFFICES - 0.51%
904,900 DISCOVERY HOLDING COMPANY CLASS A+ 19,681,575
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.51%
170,000 BOYD GAMING CORPORATION 7,735,000
1,329,200 EMPIRE RESORTS INCORPORATED+ 11,710,252
19,445,252
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.90%
2,942,400 CRAY INCORPORATED+** 36,632,880
4,059,000 INTERMEC INCORPORATED+** 90,637,470
1,043,200 PROQUEST COMPANY+ 9,493,120
245,400 SMITH INTERNATIONAL INCORPORATED 12,868,776
149,632,246
---------------
INSURANCE CARRIERS - 1.57%
1,064,100 ARGONAUT GROUP INCORPORATED+ 35,764,401
162,450 DONEGAL GROUP INCORPORATED CLASS A 2,464,367
407,900 MERCURY GENERAL CORPORATION 22,087,785
60,316,553
---------------
JUSTICE, PUBLIC ORDER & SAFETY - 1.85%
1,385,100 GEO GROUP INCORPORATED+** 70,917,120
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 1.66%
6,206,320 CHAMPION ENTERPRISES INCORPORATED+** 63,800,970
---------------
49
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 2.97%
391,300 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP $ 12,224,212
441,900 ARMOR HOLDINGS INCORPORATED+ 31,595,850
1,022,300 COHERENT INCORPORATED+ 32,089,997
4,370,100 CREDENCE SYSTEMS CORPORATION+ 16,213,071
1,083,300 INPUT OUTPUT INCORPORATED+ 15,155,367
397,700 SYMMETRY MEDICAL INCORPORATED+ 6,756,923
114,035,420
---------------
METAL MINING - 12.22%
4,653,680 APEX SILVER MINES LIMITED+** 69,758,663
6,011,049 GOLDCORP INCORPORATED 146,308,933
763,000 IPSCO INCORPORATED 112,809,550
1,107,210 MERIDIAN GOLD INCORPORATED+ 27,957,053
4,704,900 RANDGOLD RESOURCES LIMITED ADR+** 112,682,355
469,516,554
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.63%
1,010,200 ACCO BRANDS CORPORATION+ 24,042,760
---------------
MISCELLANEOUS RETAIL - 0.15%
516,200 SHARPER IMAGE CORPORATION+ 5,827,898
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.26%
950,700 COVENANT TRANSPORT INCORPORATED CLASS A+** 10,124,955
---------------
OIL & GAS EXTRACTION - 24.67%
529,600 BOOTS & COOTS INTERNATIONAL CONTROL INCORPORATED+ 1,117,456
853,700 FOREST OIL CORPORATION+ 30,084,388
10,168,100 GLOBAL INDUSTRIES LIMITED+** 211,089,756
1,098,100 HELIX ENERGY SOLUTIONS GROUP INCORPORATED+ 42,013,306
1,922,500 HELMERICH & PAYNE INCORPORATED 62,077,525
3,429,100 KEY ENERGY SERVICES INCORPORATED+ 63,952,715
424,200 MARINER ENERGY INCORPORATED+ 9,565,710
2,651,620 MCMORAN EXPLORATION COMPANY+** 34,179,382
665,800 NEWFIELD EXPLORATION COMPANY+ 29,128,750
6,456,800 NEWPARK RESOURCES INCORPORATED+** 53,074,896
475,900 NOBLE ENERGY INCORPORATED 27,987,679
1,160,100 OCEANEERING INTERNATIONAL INCORPORATED+ 55,151,154
212,000 PARKER DRILLING COMPANY+ 2,302,320
46,100 PETROHAWK ENERGY CORPORATION+ 666,145
474,600 PETROHAWK ENERGY CORPORATION 6,857,970
927,100 PETROQUEST ENERGY INCORPORATED+ 10,587,482
308,500 PIONEER NATURAL RESOURCES COMPANY 15,486,700
894,000 PRIDE INTERNATIONAL INCORPORATED+ 29,332,140
4,724,100 RANGE RESOURCES CORPORATION 172,665,855
337,600 TRANSOCEAN INCORPORATED+ 29,101,120
2,148,700 TRILOGY ENERGY TRUST 22,069,718
1,659,510 WILLBROS GROUP INCORPORATED+** 39,264,007
947,756,174
---------------
PAPER & ALLIED PRODUCTS - 1.01%
708,000 CHESAPEAKE CORPORATION+ 10,450,080
2,098,700 WAUSAU PAPER CORPORATION 28,248,502
38,698,582
---------------
50
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PETROLEUM REFINING & RELATED INDUSTRIES - 1.57%
278,200 ASHLAND INCORPORATED $ 16,678,090
1,530,800 INTEROIL CORPORATION+** 43,444,104
60,122,194
---------------
PRIMARY METAL INDUSTRIES - 4.84%
460,000 CARPENTER TECHNOLOGY CORPORATION 55,830,200
989,300 ENCORE WIRE CORPORATION 27,403,610
1,754,200 STEEL DYNAMICS INCORPORATED 77,728,602
151,300 UNITED STATES STEEL CORPORATION 15,363,002
99,270 WEBCO INDUSTRIES INCORPORATED+** 9,430,603
185,756,017
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.59%
637,500 MCCLATCHY COMPANY CLASS A 18,423,750
545,700 R.H. DONNELLEY CORPORATION+ 42,613,713
61,037,463
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.08%
823,100 CONSTAR INTERNATIONAL INCORPORATED+** 7,267,973
4,539,470 INTERTAPE POLYMER GROUP INCORPORATED+** 22,243,403
285,200 JARDEN CORPORATION+ 12,018,328
41,529,704
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 0.65%
2,936,600 US CONCRETE INCORPORATED+** 24,990,466
---------------
TRANSPORTATION BY AIR - 1.35%
145,900 AIR CANADA CLASS A+ 2,195,270
333,700 EGL INCORPORATED+ 13,241,216
175,300 LAN AIRLINES SA ADR+ 12,823,195
129,700 PHI INCORPORATED+ 3,501,900
759,300 PHI INCORPORATED (NON-VOTING)+** 20,265,717
52,027,298
---------------
TRANSPORTATION EQUIPMENT - 1.23%
5,664,145 FLEETWOOD ENTERPRISES INCORPORATED+** 47,182,328
---------------
WHOLESALE TRADE-DURABLE GOODS - 0.06%
74,800 OMNICARE INCORPORATED 2,481,113
---------------
TOTAL COMMON STOCKS (COST $2,563,363,949) 3,622,257,606
---------------
PREFERRED STOCKS - 0.06%
3,559,747 STATS CHIPPAC LIMITED ADR+(A) 2,385,030
TOTAL PREFERRED STOCKS (COST $0) 2,385,030
---------------
51
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 8.44%
324,285,805 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ $ 324,285,805
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $324,285,805) 324,285,805
---------------
Total Investments in Securities
(Cost $2,887,649,754)* 102.81% $ 3,948,928,441
OTHER ASSETS AND LIABILITIES, NET (2.81) (107,884,493)
------ ---------------
TOTAL NET ASSETS 100.00% $ 3,841,043,948
====== ===============
+ NON-INCOME EARNING SECURITIES.
** 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 TO THE ISSUER'S OUTSTANDING VOTING
SHARES.
(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 $324,285,805.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS SECURITY NAME STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS - (2.46%)
(400) ARMOR HOLDINGS INCORPORATED CALL+ $ 70.00 08/18/2007 $ (240,000)
(100) ARMOR HOLDINGS INCORPORATED CALL+ 75.00 08/18/2007 (36,000)
(150) BOYD GAMING CORPORATION CALL+ 50.00 05/19/2007 (3,000)
(150) BOYD GAMING CORPORATION CALL+ 45.00 06/16/2007 (36,750)
(200) BOYD GAMING CORPORATION CALL+ 50.00 06/16/2007 (11,000)
(2,000) CARPENTER TECHNOLOGY CORPORATION CALL+ 100.00 06/16/2007 (4,400,000)
(1,050) CARPENTER TECHNOLOGY CORPORATION CALL+ 105.00 06/16/2007 (1,827,000)
(550) CARPENTER TECHNOLOGY CORPORATION CALL+ 110.00 06/16/2007 (726,000)
(550) CARPENTER TECHNOLOGY CORPORATION CALL+ 105.00 09/22/2007 (1,138,500)
(450) CARPENTER TECHNOLOGY CORPORATION CALL+ 110.00 09/22/2007 (774,000)
(3,500) CHAMPION ENTERPRISES INCORPORATED CALL+ 10.00 07/21/2007 (525,000)
(1,800) CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES CALL+ 25.00 07/21/2007 (1,782,000)
(800) CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES CALL+ 30.00 07/21/2007 (448,000)
(225) CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES CALL+ 35.00 07/21/2007 (43,875)
(400) CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES CALL+ 30.00 10/20/2007 (268,000)
(1,100) CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES CALL+ 35.00 10/20/2007 (341,000)
(300) CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES CALL+ 40.00 10/20/2007 (31,500)
(700) CV THERAPEUTICS INCORPORATED CALL+ 7.50 07/21/2007 (122,500)
(2,300) CV THERAPEUTICS INCORPORATED CALL+ 10.00 07/21/2007 (126,500)
(500) DELUXE CORPORATION CALL+ 40.00 10/20/2007 (115,000)
(300) DISCOVERY HOLDING COMPANY CLASS A CALL+ 17.50 07/21/2007 (132,000)
(180) ENCORE WIRE CORPORATION CALL+ 25.00 05/19/2007 (49,500)
(500) ENCORE WIRE CORPORATION CALL+ 25.00 06/16/2007 (155,000)
(500) ENCORE WIRE CORPORATION CALL+ 25.00 08/18/2007 (180,000)
(200) ENCORE WIRE CORPORATION CALL+ 30.00 08/18/2007 (27,200)
(100) GEO GROUP INCORPORATED CALL+ 50.00 09/22/2007 (48,000)
(50) GEO GROUP INCORPORATED CALL+ 55.00 09/22/2007 (12,500)
(400) GLOBAL INDUSTRIES LIMITED CALL+ 17.50 09/22/2007 (168,000)
(1,800) GLOBAL INDUSTRIES LIMITED CALL+ 20.00 09/22/2007 (468,000)
(500) GLOBAL INDUSTRIES LIMITED CALL+ 22.50 09/22/2007 (85,000)
(500) INTERMEC INCORPORATED CALL+ 22.50 06/16/2007 (62,500)
52
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS SECURITY NAME STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(500) INTERMEC INCORPORATED CALL+ $ 22.50 09/22/2007 $ (107,500)
(500) INTERMEC INCORPORATED CALL+ 25.00 09/22/2007 (57,500)
(100) INTEROIL CORPORATION CALL+ 22.50 05/19/2007 (59,000)
(1,140) INTEROIL CORPORATION CALL+ 25.00 05/19/2007 (456,000)
(500) INTEROIL CORPORATION CALL+ 30.00 05/19/2007 (72,500)
(100) INTEROIL CORPORATION CALL+ 20.00 06/16/2007 (91,000)
(700) INTEROIL CORPORATION CALL+ 22.50 06/16/2007 (504,000)
(1,900) INTEROIL CORPORATION CALL+ 25.00 06/16/2007 (1,121,000)
(850) INTEROIL CORPORATION CALL+ 30.00 06/16/2007 (289,000)
(550) INTEROIL CORPORATION CALL+ 35.00 06/16/2007 (118,250)
(500) INTEROIL CORPORATION CALL+ 40.00 06/16/2007 (57,500)
(300) INTEROIL CORPORATION CALL+ 25.00 09/22/2007 (231,000)
(211) INTEROIL CORPORATION CALL+ 30.00 09/22/2007 (116,050)
(200) INTEROIL CORPORATION CALL+ 35.00 09/22/2007 (86,000)
(1,000) IPSCO INCORPORATED CALL+ 135.00 05/19/2007 (1,440,000)
(100) IPSCO INCORPORATED CALL+ 145.00 05/19/2007 (114,000)
(1,800) IPSCO INCORPORATED CALL+ 90.00 06/16/2007 (10,440,000)
(2,000) IPSCO INCORPORATED CALL+ 95.00 06/16/2007 (10,620,000)
(500) IPSCO INCORPORATED CALL+ 125.00 06/16/2007 (1,245,000)
(500) IPSCO INCORPORATED CALL+ 90.00 09/22/2007 (2,940,000)
(500) IPSCO INCORPORATED CALL+ 95.00 09/22/2007 (2,700,000)
(600) IPSCO INCORPORATED CALL+ 115.00 09/22/2007 (2,130,000)
(400) IPSCO INCORPORATED CALL+ 120.00 09/22/2007 (1,476,000)
(230) IPSCO INCORPORATED CALL+ 125.00 09/22/2007 (616,400)
(300) JARDEN CORPORATION CALL+ 30.00 07/21/2007 (372,000)
(900) JARDEN CORPORATION CALL+ 35.00 07/21/2007 (693,000)
(900) JARDEN CORPORATION CALL+ 40.00 07/21/2007 (378,000)
(750) JARDEN CORPORATION CALL+ 35.00 10/20/2007 (645,000)
(200) LIGHTBRIDGE INCORPORATED CALL+ 15.00 07/21/2007 (53,000)
(1,000) LIGHTBRIDGE INCORPORATED CALL+ 17.50 07/21/2007 (120,000)
(500) MANOR CARE INCORPORATED CALL+ 65.00 05/19/2007 (50,000)
(1,192) MATRIX SERVICE COMPANY CALL+ 17.50 05/19/2007 (810,560)
(100) NEWFIELD EXPLORATION COMPANY CALL+ 45.00 05/19/2007 (8,000)
(600) NEWFIELD EXPLORATION COMPANY CALL+ 45.00 06/16/2007 (87,000)
(400) NEWFIELD EXPLORATION COMPANY CALL+ 50.00 09/22/2007 (46,000)
(200) NOBLE ENERGY INCORPORATED CALL+ 40.00 05/19/2007 (374,000)
(175) NOBLE ENERGY INCORPORATED CALL+ 45.00 05/19/2007 (239,750)
(900) NOBLE ENERGY INCORPORATED CALL+ 50.00 05/19/2007 (882,000)
(400) NOBLE ENERGY INCORPORATED CALL+ 55.00 05/19/2007 (220,000)
(500) NOBLE ENERGY INCORPORATED CALL+ 60.00 05/19/2007 (62,500)
(200) NOBLE ENERGY INCORPORATED CALL+ 60.00 08/18/2007 (69,400)
(2,063) OM GROUP INCORPORATED CALL+ 40.00 06/16/2007 (2,929,460)
(1,100) OM GROUP INCORPORATED CALL+ 45.00 06/16/2007 (1,012,000)
(400) OM GROUP INCORPORATED CALL+ 35.00 09/22/2007 (748,000)
(1,000) OM GROUP INCORPORATED CALL+ 40.00 09/22/2007 (1,440,000)
(374) OMNICARE INCORPORATED CALL+ 35.00 09/21/2007 (74,800)
(374) OMNICARE INCORPORATED CALL+ 37.50 09/21/2007 (43,010)
(300) PARKER DRILLING COMPANY CALL+ 10.00 05/19/2007 (36,000)
53
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
CONTRACTS SECURITY NAME STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS (CONTINUED)
(200) PARKER DRILLING COMPANY CALL+ $ 10.00 07/21/2007 $ (32,000)
(797) PAYLESS SHOESOURCE INCORPORATED CALL+ 30.00 06/16/2007 (247,070)
(250) R.H. DONNELLEY CORPORATION CALL+ 70.00 05/19/2007 (212,500)
(200) R.H. DONNELLEY CORPORATION CALL+ 75.00 05/19/2007 (108,000)
(200) R.H. DONNELLEY CORPORATION CALL+ 70.00 11/16/2007 (246,000)
(200) RANDGOLD RESOURCES LIMITED ADR CALL+ 25.00 06/16/2007 (15,000)
(100) RANDGOLD RESOURCES LIMITED ADR CALL+ 25.00 09/22/2007 (18,000)
(300) RANDGOLD RESOURCES LIMITED ADR CALL+ 30.00 09/22/2007 (13,500)
(1,200) RANGE RESOURCES CORPORATION CALL+ 35.00 09/22/2007 (456,000)
(1,400) RANGE RESOURCES CORPORATION CALL+ 37.50 09/22/2007 (357,000)
(200) RANGE RESOURCES CORPORATION CALL+ 40.00 09/22/2007 (30,000)
(200) RANGE RESOURCES CORPORATION CALL+ 40.00 12/21/2007 (59,000)
(300) RANGE RESOURCES CORPORATION CALL+ 42.50 12/21/2007 (58,500)
(400) RANGE RESOURCES CORPORATION CALL+ 45.00 12/21/2007 (52,000)
(200) SMITH INTERNATIONAL INCORPORATED CALL+ 42.50 07/21/2007 (244,000)
(600) SMITH INTERNATIONAL INCORPORATED CALL+ 42.50 07/21/2007 (732,000)
(200) SMITH INTERNATIONAL INCORPORATED CALL+ 50.00 07/21/2007 (98,000)
(300) SMITH INTERNATIONAL INCORPORATED CALL+ 45.00 10/19/2007 (300,000)
(300) SMITH INTERNATIONAL INCORPORATED CALL+ 50.00 10/19/2007 (192,000)
(250) SRA INTERNATIONAL INCORPORATED CLASS A CALL+ 22.50 06/16/2007 (62,500)
(2,000) STEEL DYNAMICS INCORPORATED CALL+ 27.50 05/19/2007 (3,340,000)
(5,489) STEEL DYNAMICS INCORPORATED CALL+ 30.00 05/19/2007 (8,343,280)
(6,190) STEEL DYNAMICS INCORPORATED CALL+ 32.50 05/19/2007 (7,242,300)
(884) STEEL DYNAMICS INCORPORATED CALL+ 35.00 05/19/2007 (822,120)
(1,000) STEEL DYNAMICS INCORPORATED CALL+ 30.00 08/18/2007 (1,460,000)
(400) STEEL DYNAMICS INCORPORATED CALL+ 35.00 08/18/2007 (412,000)
(200) STEEL DYNAMICS INCORPORATED CALL+ 40.00 08/18/2007 (128,000)
(250) TWEEN BRANDS INCORPORATED CALL+ 35.00 05/19/2007 (105,000)
(500) TWEEN BRANDS INCORPORATED CALL+ 35.00 08/18/2007 (135,000)
(525) UNITED STATES STEEL CORPORATION CALL+ 55.00 07/21/2007 (2,556,750)
(693) UNITED STATES STEEL CORPORATION CALL+ 65.00 07/21/2007 (2,571,030)
(295) UNITED STATES STEEL CORPORATION CALL+ 70.00 07/21/2007 (949,900)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(56,207,600)) $ (94,462,955)
---------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
THIS PAGE IS INTENTIONALLY LEFT BLANK --
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP COMMON
VALUE FUND STOCK FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .......................................................... $ 999,444,161 $ 1,107,374,251
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ............................................... 170,599,292 128,936,785
INVESTMENTS IN AFFILIATES ............................................................... 48,663,541 53,943,769
-----------------------------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ......................................... 1,218,706,994 1,290,254,805
-----------------------------------
CASH .................................................................................... 0 3,309
RECEIVABLE FOR FUND SHARES ISSUED ....................................................... 1,429,491 71,330
RECEIVABLE FOR INVESTMENTS SOLD ......................................................... 15,308,101 11,790,727
RECEIVABLES FOR DIVIDENDS AND INTEREST .................................................. 497,786 458,309
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ......................................... 0 3,654,310
-----------------------------------
TOTAL ASSETS ............................................................................... 1,235,942,372 1,306,232,790
-----------------------------------
LIABILITIES
OPTIONS WRITTEN, AT VALUE ............................................................... 0 1,431,000
PAYABLE FOR FUND SHARES REDEEMED ........................................................ 392,910 298,851
PAYABLE FOR INVESTMENTS PURCHASED ....................................................... 11,671,321 12,198,424
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ................................... 836,197 689,805
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................................................. 170,599,292 128,936,785
ACCRUED EXPENSES AND OTHER LIABILITIES .................................................. 272,060 397,070
-----------------------------------
TOTAL LIABILITIES .......................................................................... 183,771,780 143,951,935
-----------------------------------
TOTAL NET ASSETS ........................................................................... $ 1,052,170,592 $ 1,162,280,855
===================================
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ......................................................................... $ 844,732,284 $ 807,613,067
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................................. 601,478 (3,480,126)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................... 54,281,183 68,201,596
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............... 152,555,647 286,389,249
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP
AGREEMENTS, AND SHORT SALES ........................................................... 0 3,557,069
-----------------------------------
TOTAL NET ASSETS ........................................................................... $ 1,052,170,592 $ 1,162,280,855
-----------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A .................................................................... $ 56,854,332 $ 62,925,876
SHARES OUTSTANDING - CLASS A ............................................................ 2,422,110 2,950,503
NET ASSET VALUE PER SHARE - CLASS A ..................................................... $ 23.47 $ 21.33
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ........................................... $ 24.90 $ 22.63
NET ASSETS - CLASS B .................................................................... $ 17,413,086 $ 33,435,217
SHARES OUTSTANDING - CLASS B ............................................................ 757,028 1,677,242
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B .................................. $ 23.00 $ 19.93
NET ASSETS - CLASS C .................................................................... $ 16,524,685 $ 19,009,855
SHARES OUTSTANDING - CLASS C ............................................................ 718,152 953,941
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C .................................. $ 23.01 $ 19.93
NET ASSETS - CLASS D .................................................................... $ 794,099,529 N/A
SHARES OUTSTANDING - CLASS D ............................................................ 33,723,005 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS D .................................. $ 23.55 N/A
NET ASSETS - CLASS Z .................................................................... N/A $ 1,046,909,907
SHARES OUTSTANDING - CLASS Z ............................................................ N/A 48,217,820
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z .................................. N/A $ 21.71
NET ASSETS - ADMINISTRATOR CLASS ........................................................ $ 114,629,039 N/A
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................................................ 4,849,972 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ...................... $ 23.63 N/A
NET ASSETS - INSTITUTIONAL CLASS ........................................................ $ 52,649,921 N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................................................ 2,222,583 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ...................... $ 23.69 N/A
-----------------------------------
INVESTMENTS AT COST ........................................................................ $ 1,066,151,347 $ 1,003,865,556
-----------------------------------
SECURITIES ON LOAN, AT MARKET VALUE ........................................................ $ 162,598,611 $ 123,883,981
-----------------------------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ....................................................... $ 0 $ 1,333,759
===================================
(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.
56
STATEMENTS OF ASSETS AND LIABILITIES--APRIL 30, 2007 (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 .......................................................... $ 155,166,461 $ 354,441,356
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ............................................... 46,682,281 137,710,278
INVESTMENTS IN AFFILIATES ............................................................... 7,799,772 13,035,793
-----------------------------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ......................................... 209,648,514 505,187,427
-----------------------------------
CASH .................................................................................... 50,000 50,000
RECEIVABLE FOR FUND SHARES ISSUED ....................................................... 27,870 276,191
RECEIVABLE FOR INVESTMENTS SOLD ......................................................... 3,947,346 7,105,095
RECEIVABLES FOR DIVIDENDS AND INTEREST .................................................. 14,502 37,045
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ......................................... 0 0
-----------------------------------
TOTAL ASSETS ............................................................................... 213,688,232 512,655,758
-----------------------------------
LIABILITIES
OPTIONS WRITTEN, AT VALUE ............................................................... 0 0
PAYABLE FOR FUND SHARES REDEEMED ........................................................ 58,217 108,567
PAYABLE FOR INVESTMENTS PURCHASED ....................................................... 5,365,662 6,956,115
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ................................... 153,505 324,637
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................................................. 46,682,281 137,710,278
ACCRUED EXPENSES AND OTHER LIABILITIES .................................................. 52,229 101,560
-----------------------------------
TOTAL LIABILITIES .......................................................................... 52,311,894 145,201,157
-----------------------------------
TOTAL NET ASSETS ........................................................................... $ 161,376,338 $ 367,454,601
===================================
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ......................................................................... $ 135,363,439 $ 326,292,234
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................................. (631,876) (1,770,971)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................... 5,180,918 7,313,969
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............... 21,463,857 35,619,369
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT
SALES ................................................................................. 0 0
-----------------------------------
TOTAL NET ASSETS ........................................................................... $ 161,376,338 $ 367,454,601
-----------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A .................................................................... $ 112,015,075 $ 153,772,794
SHARES OUTSTANDING - CLASS A ............................................................ 16,701,016 11,090,163
NET ASSET VALUE PER SHARE - CLASS A ..................................................... $ 6.71 $ 13.87
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ........................................... $ 7.12 $ 14.72
NET ASSETS - CLASS B .................................................................... $ 7,380,443 $ 16,427,549
SHARES OUTSTANDING - CLASS B ............................................................ 1,168,611 1,226,511
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B .................................. $ 6.32 $ 13.39
NET ASSETS - CLASS C .................................................................... $ 2,103,843 $ 7,104,518
SHARES OUTSTANDING - CLASS C ............................................................ 333,739 529,788
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C .................................. $ 6.30 $ 13.41
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 .................................................................... $ 39,876,977 $ 38,728,954
SHARES OUTSTANDING - CLASS Z ............................................................ 5,970,145 2,805,125
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z .................................. $ 6.68 $ 13.81
NET ASSETS - ADMINISTRATOR CLASS ........................................................ N/A $ 85,040,655
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................................................ N/A 6,081,030
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ...................... N/A $ 13.98
NET ASSETS - INSTITUTIONAL CLASS ........................................................ N/A $ 66,380,131
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................................................ N/A 4,714,673
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ...................... N/A $ 14.08
-----------------------------------
INVESTMENTS AT COST ........................................................................ $ 188,184,657 $ 469,568,058
-----------------------------------
SECURITIES ON LOAN, AT MARKET VALUE ........................................................ $ 43,908,743 $ 129,697,147
-----------------------------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ....................................................... $ 0 $ 0
===================================
SMALL CAP
OPPORTUNITIES SMALL CAP
FUND VALUE FUND
-----------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE .......................................................... $ 767,492,846 $ 3,624,642,636
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ............................................... 219,710,974 0
INVESTMENTS IN AFFILIATES ............................................................... 109,814,019 324,285,805
-----------------------------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) ......................................... 1,097,017,839 3,948,928,441
-----------------------------------
CASH .................................................................................... 50,000 0
RECEIVABLE FOR FUND SHARES ISSUED ....................................................... 1,527,220 957,208
RECEIVABLE FOR INVESTMENTS SOLD ......................................................... 4,709,941 12,168,892
RECEIVABLES FOR DIVIDENDS AND INTEREST .................................................. 763,548 2,708,056
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS ......................................... 0 0
-----------------------------------
TOTAL ASSETS ............................................................................... 1,104,068,548 3,964,762,597
-----------------------------------
LIABILITIES
OPTIONS WRITTEN, AT VALUE .............................................................. 0 94,462,955
PAYABLE FOR FUND SHARES REDEEMED ........................................................ 18,961 669,104
PAYABLE FOR INVESTMENTS PURCHASED ....................................................... 1,372,606 23,849,911
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) ................................... 661,442 3,958,582
PAYABLE FOR SECURITIES LOANED (NOTE 2) .................................................. 219,710,974 0
ACCRUED EXPENSES AND OTHER LIABILITIES .................................................. 260,489 778,097
-----------------------------------
TOTAL LIABILITIES .......................................................................... 222,024,472 123,718,649
-----------------------------------
TOTAL NET ASSETS ........................................................................... $ 882,044,076 $ 3,841,043,948
===================================
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL ......................................................................... $ 694,619,134 $ 2,700,414,783
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................................. 586,493 (20,067,542)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................... 48,501,264 137,671,002
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ............... 138,337,185 1,061,281,060
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT
SALES ................................................................................. 0 (38,255,355)
-----------------------------------
TOTAL NET ASSETS ........................................................................... $ 882,044,076 $ 3,841,043,948
-----------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A .................................................................... N/A $ 681,404,802
SHARES OUTSTANDING - CLASS A ............................................................ N/A 20,540,621
NET ASSET VALUE PER SHARE - CLASS A ..................................................... N/A $ 33.17
MAXIMUM OFFERING PRICE PER SHARE - CLASS A(2) ........................................... N/A $ 35.19
NET ASSETS - CLASS B .................................................................... N/A $ 128,627,141
SHARES OUTSTANDING - CLASS B ............................................................ N/A 4,124,366
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS B .................................. N/A $ 31.19
NET ASSETS - CLASS C .................................................................... N/A $ 144,385,817
SHARES OUTSTANDING - CLASS C ............................................................ N/A 4,617,236
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS C .................................. N/A $ 31.27
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 $ 2,886,626,188
SHARES OUTSTANDING - CLASS Z ............................................................ N/A 85,991,405
NET ASSET VALUE AND OFFERING PRICE PER SHARE - CLASS Z .................................. N/A $ 33.57
NET ASSETS - ADMINISTRATOR CLASS ........................................................ $ 882,044,076 N/A
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................................................ 24,119,866 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ...................... $ 36.57 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 ........................................................................ $ 958,680,654 $ 2,887,649,754
-----------------------------------
SECURITIES ON LOAN, AT MARKET VALUE ........................................................ $ 207,304,699 $ 0
-----------------------------------
PREMIUMS RECEIVED ON WRITTEN OPTIONS ....................................................... $ 0 $ 56,207,600
===================================
57
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF OPERATIONS--FOR THE SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
C&B MID CAP COMMON
VALUE FUND STOCK FUND
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .......................................................... $ 5,534,397 $ 3,531,339
INTEREST .............................................................. 3,347 3,320
INCOME FROM AFFILIATED SECURITIES ..................................... 1,217,818 2,336,858
SECURITIES LENDING INCOME, NET ........................................ 227,523 59,129
-------------------------------
TOTAL INVESTMENT INCOME .................................................. 6,983,085 5,930,646
-------------------------------
EXPENSES
ADVISORY FEES ......................................................... 3,304,647 4,022,825
ADMINISTRATION FEES
FUND LEVEL .......................................................... 227,297 280,850
CLASS A ............................................................. 67,043 88,555
CLASS B ............................................................. 22,815 47,102
CLASS C ............................................................. 19,267 26,235
CLASS D ............................................................. 955,965 N/A
CLASS Z ............................................................. N/A 2,267,466
ADMINISTRATOR CLASS ................................................. 50,410 N/A
INSTITUTIONAL CLASS ................................................. 19,036 N/A
CUSTODY FEES .......................................................... 90,919 112,340
SHAREHOLDER SERVICING FEES (NOTE 3) ................................... 1,076,995 1,404,250
ACCOUNTING FEES ....................................................... 46,159 54,855
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................................. 61,112 126,167
CLASS C ............................................................. 51,606 70,273
PROFESSIONAL FEES ..................................................... 14,014 44,076
REGISTRATION FEES ..................................................... 49,559 13,037
SHAREHOLDER REPORTS ................................................... 53,945 45,297
TRUSTEES' FEES ........................................................ 4,478 4,478
OTHER FEES AND EXPENSES ............................................... 6,764 5,126
-------------------------------
TOTAL EXPENSES ........................................................... 6,122,031 8,612,932
-------------------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .......................... (415,965) (1,158,995)
NET EXPENSES .......................................................... 5,706,066 7,453,937
-------------------------------
NET INVESTMENT INCOME (LOSS) ............................................. 1,277,019 (1,523,291)
-------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ....... 55,451,407 72,916,322
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .................. 0 2,989,111
-------------------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................................ 55,451,407 75,905,433
-------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ....... 37,076,766 59,360,451
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .................. 0 1,636,162
-------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...... 37,076,766 60,996,613
-------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ................... 92,528,173 136,902,046
-------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......... $ 93,805,192 $ 135,378,755
===============================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ............................... $ 0 $ 7,425
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
58
STATEMENTS OF OPERATIONS-- FOR THE SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP SMALL CAP
GROWTH FUND GROWTH FUND
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) .......................................................... $ 413,488 $ 108,670
INTEREST .............................................................. 0 0
INCOME FROM AFFILIATED SECURITIES ..................................... 86,853 227,731
SECURITIES LENDING INCOME, NET ........................................ 23,452 214,170
-------------------------------
TOTAL INVESTMENT INCOME .................................................. 523,793 550,571
-------------------------------
EXPENSES
ADVISORY FEES ......................................................... 582,657 1,555,125
ADMINISTRATION FEES
FUND LEVEL .......................................................... 38,844 86,396
CLASS A ............................................................. 150,123 205,179
CLASS B ............................................................. 10,265 26,524
CLASS C ............................................................. 2,828 9,612
CLASS D ............................................................. N/A N/A
CLASS Z ............................................................. 87,282 85,381
ADMINISTRATOR CLASS ................................................. N/A 37,194
INSTITUTIONAL CLASS ................................................. N/A 24,352
CUSTODY FEES .......................................................... 15,538 34,558
SHAREHOLDER SERVICING FEES (NOTE 3) ................................... 194,218 355,878
ACCOUNTING FEES ....................................................... 16,544 32,915
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................................. 27,496 71,047
CLASS C ............................................................. 7,574 25,744
PROFESSIONAL FEES ..................................................... 8,576 9,952
REGISTRATION FEES ..................................................... 7,122 6,989
SHAREHOLDER REPORTS ................................................... 16,410 41,042
TRUSTEES' FEES ........................................................ 4,478 4,478
OTHER FEES AND EXPENSES ............................................... 1,164 2,367
-------------------------------
TOTAL EXPENSES ........................................................... 1,171,119 2,614,733
-------------------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) .......................... (15,450) (293,191)
NET EXPENSES .......................................................... 1,155,669 2,321,542
-------------------------------
NET INVESTMENT INCOME (LOSS) ............................................. (631,876) (1,770,971)
-------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ....... 14,474,147 27,465,643
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .................. 0 0
-------------------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................................ 14,474,147 27,465,643
-------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ....... 7,331,794 9,227,273
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS .................. 0 0
-------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...... 7,331,794 9,227,273
-------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .................. 21,805,941 36,692,916
-------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... $ 21,174,065 $ 34,921,945
===============================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ............................... $ 0 $ 0
SMALL CAP
OPPORTUNITIES SMALL CAP
FUND VALUE FUND
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS(1) ......................................................... $ 3,170,002 $ 8,009,889
INTEREST ............................................................. 1,880 63,954
INCOME FROM AFFILIATED SECURITIES .................................... 2,158,440 10,016,043
SECURITIES LENDING INCOME, NET ....................................... 234,794 0
-------------------------------
TOTAL INVESTMENT INCOME ................................................. 5,565,116 18,089,886
-------------------------------
EXPENSES
ADVISORY FEES ........................................................ 3,650,497 14,702,208
ADMINISTRATION FEES
FUND LEVEL ......................................................... 207,443 900,540
CLASS A ............................................................ N/A 920,461
CLASS B ............................................................ N/A 177,719
CLASS C ............................................................ N/A 198,742
CLASS D ............................................................ N/A N/A
CLASS Z ............................................................ N/A 6,020,521
ADMINISTRATOR CLASS ................................................ 414,885 N/A
INSTITUTIONAL CLASS ................................................ N/A N/A
CUSTODY FEES ......................................................... 82,977 360,216
SHAREHOLDER SERVICING FEES (NOTE 3) .................................. 1,037,213 4,502,701
ACCOUNTING FEES ...................................................... 29,417 123,761
DISTRIBUTION FEES (NOTE 3)
CLASS B ............................................................ N/A 476,033
CLASS C ............................................................ N/A 532,346
PROFESSIONAL FEES .................................................... 15,833 47,645
REGISTRATION FEES .................................................... 11,548 17,962
SHAREHOLDER REPORTS .................................................. 52,990 173,928
TRUSTEES' FEES ....................................................... 4,478 4,478
OTHER FEES AND EXPENSES .............................................. 11,892 43,949
-------------------------------
TOTAL EXPENSES .......................................................... 5,519,173 29,203,210
-------------------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ......................... (540,550) (3,336,219)
NET EXPENSES ......................................................... 4,978,623 25,866,991
-------------------------------
NET INVESTMENT INCOME (LOSS) ............................................ 586,493 (7,777,105)
-------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 49,056,190 255,386,673
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ................. 0 (60,255,472)
-------------------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ............................... 49,056,190 195,131,201
-------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION ...... 41,075,640 225,557,655
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ................. 0 (17,652,207)
-------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ..... 41,075,640 207,905,448
-------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS .................. 90,131,830 403,036,649
-------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......... $ 90,718,323 $ 395,259,544
==============================
(1) NET OF FOREIGN WITHHOLDING TAXES OF .............................. $ 10,688 $ 420,509
59
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, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................................. $ 818,180,774 $ 697,428,194
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................................... 1,277,019 2,730,785
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................................... 55,451,407 94,249,682
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ................... 37,076,766 64,756,208
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......................... 93,805,192 161,736,675
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................. (129,710) 0
CLASS B ............................................................................. 0 0
CLASS C ............................................................................. 0 0
CLASS D ............................................................................. (2,464,100) 0
CLASS Z ............................................................................. N/A N/A
ADMINISTRATOR CLASS ................................................................. (295,845) (12,076)
INSTITUTIONAL CLASS ................................................................. (381,798) (130,799)
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................. (4,798,388) (2,353,242)
CLASS B ............................................................................. (1,754,248) (990,752)
CLASS C ............................................................................. (1,369,537) (635,292)
CLASS D ............................................................................. (69,570,389) (38,980,147)
CLASS Z ............................................................................. N/A N/A
ADMINISTRATOR CLASS ................................................................. (9,270,199) (9,848,215)
INSTITUTIONAL CLASS ................................................................. (6,136,456) (4,803,413)
-------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................................... (96,170,670) (57,753,936)
-------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................................... 17,988,110 17,132,776
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................................... 4,476,487 2,099,310
COST OF SHARES REDEEMED - CLASS A ..................................................... (7,291,819) (9,345,783)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS A ............................................................................. 15,172,778 9,886,303
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................................... 2,342,488 4,223,769
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................................... 1,714,929 971,769
COST OF SHARES REDEEMED - CLASS B ..................................................... (1,996,436) (2,996,338)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS B ............................................................................. 2,060,981 2,199,200
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................................... 4,608,687 4,196,663
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................................... 1,337,883 624,326
COST OF SHARES REDEEMED - CLASS C ..................................................... (926,589) (1,442,234)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS C ............................................................................. 5,019,981 3,378,755
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS D ................................................... 246,017,522 282,121,035
REINVESTMENT OF DISTRIBUTIONS - CLASS D ............................................... 70,808,233 38,344,337
COST OF SHARES REDEEMED - CLASS D ..................................................... (132,545,025) (254,253,816)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS D ............................................................................. 184,280,730 66,211,556
-------------------------------------
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 ....................................... 78,114,835 51,479,194
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ................................... 8,092,708 8,604,922
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ......................................... (54,601,590) (109,339,991)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- ADMINISTRATOR CLASS ................................................................. 31,605,953 (49,255,875)
-------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................................... 15,925,700 10,408,696
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................................... 6,495,331 4,934,212
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................................... (24,206,158) (30,993,006)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- INSTITUTIONAL CLASS ................................................................. (1,785,127) (15,650,098)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS .......... 236,355,296 16,769,841
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS .................................................... 233,989,818 120,752,580
-------------------------------------
ENDING NET ASSETS ........................................................................ $ 1,052,170,592 $ 818,180,774
=====================================
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
- --------------------------------------------------------------------------------
COMMON STOCK FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................................. $ 1,109,461,730 $ 1,126,471,146
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................................... (1,523,291) (1,930,791)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................................... 75,905,433 229,719,291
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ................... 60,996,613 (25,567,662)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......................... 135,378,755 202,220,838
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................. 0 0
CLASS B ............................................................................. 0 0
CLASS C ............................................................................. 0 0
CLASS D ............................................................................. N/A N/A
CLASS Z ............................................................................. 0 0
ADMINISTRATOR CLASS ................................................................. N/A N/A
INSTITUTIONAL CLASS ................................................................. N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................. (13,744,701) (8,532,731)
CLASS B ............................................................................. (7,596,727) (4,903,732)
CLASS C ............................................................................. (4,181,212) (2,793,965)
CLASS D ............................................................................. N/A N/A
CLASS Z ............................................................................. (204,174,197) (136,461,500)
ADMINISTRATOR CLASS ................................................................. N/A N/A
INSTITUTIONAL CLASS ................................................................. N/A N/A
-------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................................... (229,696,837) (152,691,928)
-------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................................... 5,768,952 17,162,821
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................................... 13,416,446 8,327,213
COST OF SHARES REDEEMED - CLASS A ..................................................... (15,050,456) (25,894,944)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS A ............................................................................. 4,134,942 (404,910)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................................... 1,911,414 2,289,357
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................................... 6,836,229 4,411,969
COST OF SHARES REDEEMED - CLASS B ..................................................... (5,843,610) (8,288,399)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS B ............................................................................. 2,904,033 (1,587,073)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................................... 2,235,792 2,045,174
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................................... 3,193,025 2,127,909
COST OF SHARES REDEEMED - CLASS C ..................................................... (3,314,254) (6,045,211)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS C ............................................................................. 2,114,563 (1,872,128)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS D ................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ............................................... N/A N/A
COST OF SHARES REDEEMED - CLASS D ..................................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS D ............................................................................. N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ................................................... 47,035,155 102,860,820
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............................................... 196,719,918 131,856,248
COST OF SHARES REDEEMED - CLASS Z ..................................................... (105,771,404) (297,391,283)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS Z ............................................................................. 137,983,669 (62,674,215)
-------------------------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS ....................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ................................... N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ......................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- ADMINISTRATOR CLASS ................................................................. N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................................... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- INSTITUTIONAL CLASS ................................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS .......... 147,137,207 (66,538,326)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS .................................................... 52,819,125 (17,009,416)
-------------------------------------
ENDING NET ASSETS ........................................................................ $ 1,162,280,855 $ 1,109,461,730
=====================================
MID CAP GROWTH FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................................. $ 151,216,185 $ 168,028,126
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................................... (631,876) (1,320,040)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................................... 14,474,147 24,722,316
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ................... 7,331,794 (1,108,834)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......................... 21,174,065 22,293,442
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................. 0 0
CLASS B ............................................................................. 0 0
CLASS C ............................................................................. 0 0
CLASS D ............................................................................. N/A N/A
CLASS Z ............................................................................. 0 0
ADMINISTRATOR CLASS ................................................................. N/A N/A
INSTITUTIONAL CLASS ................................................................. N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................. (13,456,997) (9,153,397)
CLASS B ............................................................................. (986,175) (702,784)
CLASS C ............................................................................. (265,145) (148,197)
CLASS D ............................................................................. N/A N/A
CLASS Z ............................................................................. (4,903,153) (4,304,881)
ADMINISTRATOR CLASS ................................................................. N/A N/A
INSTITUTIONAL CLASS ................................................................. N/A N/A
-------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................................... (19,611,470) (14,309,259)
-------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................................... 7,302,829 15,667,655
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................................... 13,075,686 8,832,003
COST OF SHARES REDEEMED - CLASS A ..................................................... (13,376,723) (34,107,576)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS A ............................................................................. 7,001,792 (9,607,918)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................................... 368,937 936,898
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................................... 930,174 685,296
COST OF SHARES REDEEMED - CLASS B ..................................................... (1,392,079) (2,831,710)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS B ............................................................................. (92,968) (1,209,516)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................................... 272,589 682,728
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................................... 235,024 130,195
COST OF SHARES REDEEMED - CLASS C ..................................................... (354,118) (572,612)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS C ............................................................................. 153,495 240,311
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS D ................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ............................................... N/A N/A
COST OF SHARES REDEEMED - CLASS D ..................................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS D ............................................................................. N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ................................................... 2,592,720 12,007,996
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............................................... 4,811,130 4,222,055
COST OF SHARES REDEEMED - CLASS Z ..................................................... (5,868,611) (30,449,052)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS Z ............................................................................. 1,535,239 (14,219,001)
-------------------------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS ....................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ................................... N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ......................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- ADMINISTRATOR CLASS ................................................................. N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................................... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- INSTITUTIONAL CLASS ................................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS .......... 8,597,558 (24,796,124)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS .................................................... 10,160,153 (16,811,941)
-------------------------------------
ENDING NET ASSETS ........................................................................ $ 161,376,338 $ 151,216,185
=====================================
SMALL CAP GROWTH FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS .................................................................. $ 292,886,990 $ 246,389,079
OPERATIONS:
NET INVESTMENT INCOME (LOSS) .......................................................... (1,770,971) (3,063,677)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ............................................... 27,465,643 47,828,868
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ................... 9,227,273 12,326,113
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......................... 34,921,945 57,091,304
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................. 0 0
CLASS B ............................................................................. 0 0
CLASS C ............................................................................. 0 0
CLASS D ............................................................................. N/A N/A
CLASS Z ............................................................................. 0 0
ADMINISTRATOR CLASS ................................................................. 0 0
INSTITUTIONAL CLASS ................................................................. 0 0
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................. (15,582,655) (7,322,891)
CLASS B ............................................................................. (2,180,416) (1,606,619)
CLASS C ............................................................................. (756,886) (458,429)
CLASS D ............................................................................. N/A N/A
CLASS Z ............................................................................. (4,055,692) (2,650,553)
ADMINISTRATOR CLASS ................................................................. (7,516,815) (4,004,271)
INSTITUTIONAL CLASS ................................................................. (6,047,204) (2,453,357)
-------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................................................... (36,139,668) (18,496,120)
-------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ................................................... 58,113,405 13,137,213
REINVESTMENT OF DISTRIBUTIONS - CLASS A ............................................... 11,256,743 6,623,831
COST OF SHARES REDEEMED - CLASS A ..................................................... (26,043,504) (22,592,799)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS A ............................................................................. 43,326,644 (2,831,755)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ................................................... 617,771 1,167,836
REINVESTMENT OF DISTRIBUTIONS - CLASS B ............................................... 2,119,310 1,546,318
COST OF SHARES REDEEMED - CLASS B ..................................................... (6,183,456) (6,282,948)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS B ............................................................................. (3,446,375) (3,568,794)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ................................................... 971,255 1,310,482
REINVESTMENT OF DISTRIBUTIONS - CLASS C ............................................... 572,481 346,940
COST OF SHARES REDEEMED - CLASS C ..................................................... (878,283) (1,926,096)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS C ............................................................................. 665,453 (268,674)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS D ................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS D ............................................... N/A N/A
COST OF SHARES REDEEMED - CLASS D ..................................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS D ............................................................................. N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ................................................... 1,542,754 3,502,114
REINVESTMENT OF DISTRIBUTIONS - CLASS Z ............................................... 3,918,516 2,543,013
COST OF SHARES REDEEMED - CLASS Z ..................................................... (3,515,729) (9,449,166)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS Z ............................................................................. 1,945,541 (3,404,039)
-------------------------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS ....................................... 63,352,610 35,096,322
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ................................... 7,142,538 3,717,705
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ......................................... (47,536,045) (38,757,968)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- ADMINISTRATOR CLASS ................................................................. 22,959,103 56,059
-------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS ....................................... 7,405,595 19,383,163
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS ................................... 5,660,954 2,453,357
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS ......................................... (2,731,581) (3,916,590)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- INSTITUTIONAL CLASS ................................................................. 10,334,968 17,919,930
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS .......... 75,785,334 7,902,727
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS .................................................... 74,567,611 46,497,911
-------------------------------------
ENDING NET ASSETS ........................................................................ $ 367,454,601 $ 292,886,990
=====================================
61
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, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................................. 782,521 795,165
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 201,931 103,823
SHARES REDEEMED - CLASS A ............................................................. (316,393) (435,748)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .................................. 668,059 463,240
-------------------------------------
SHARES SOLD - CLASS B ................................................................. 104,053 198,791
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 78,956 48,589
SHARES REDEEMED - CLASS B ............................................................. (88,508) (140,511)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .................................. 94,501 106,869
-------------------------------------
SHARES SOLD - CLASS C ................................................................. 205,074 197,856
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 61,568 31,217
SHARES REDEEMED - CLASS C ............................................................. (41,157) (68,770)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .................................. 225,485 160,303
-------------------------------------
SHARES SOLD - CLASS D ................................................................. 10,692,914 12,843,474
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .............................. 3,182,736 1,892,613
SHARES REDEEMED - CLASS D ............................................................. (5,765,315) (11,728,927)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .................................. 8,110,335 3,007,160
-------------------------------------
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 ..................................................... 3,463,846 2,373,676
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS .................. 362,770 424,108
SHARES REDEEMED - ADMINISTRATOR CLASS ................................................. (2,420,703) (5,053,290)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ...................... 1,405,913 (2,255,506)
-------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS ..................................................... 682,539 476,714
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. 289,818 242,381
SHARES REDEEMED - INSTITUTIONAL CLASS ................................................. (1,073,139) (1,446,042)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ...................... (100,782) (726,947)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .. 10,403,511 755,119
=====================================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................. $ 601,478 $ 2,595,912
=====================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
62
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
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................................. 275,394 755,974
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 682,424 386,952
SHARES REDEEMED - CLASS A ............................................................. (730,268) (1,139,584)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .................................. 227,550 3,342
-------------------------------------
SHARES SOLD - CLASS B ................................................................. 101,896 107,255
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 370,929 214,064
SHARES REDEEMED - CLASS B ............................................................. (304,081) (382,595)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .................................. 168,744 (61,276)
-------------------------------------
SHARES SOLD - CLASS C ................................................................. 120,381 97,818
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 173,345 103,297
SHARES REDEEMED - CLASS C ............................................................. (172,852) (279,812)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .................................. 120,874 (78,697)
-------------------------------------
SHARES SOLD - CLASS D ................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .............................. N/A N/A
SHARES REDEEMED - CLASS D ............................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .................................. N/A N/A
-------------------------------------
SHARES SOLD - CLASS Z. ................................................................ 2,245,653 4,459,393
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............................. 9,831,080 6,040,092
SHARES REDEEMED - CLASS Z ............................................................. (4,861,033) (12,903,131)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .................................. 7,215,700 (2,403,646)
-------------------------------------
SHARES SOLD - ADMINISTRATOR CLASS ..................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS .................. N/A N/A
SHARES REDEEMED - ADMINISTRATOR CLASS ................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ...................... N/A N/A
-------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS ..................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS ................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ...................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .. 7,732,868 (2,540,277)
=====================================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................. $ (3,480,126) $ (1,956,835)
=====================================
MID CAP GROWTH FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................................. 1,120,970 2,376,981
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 2,126,113 1,431,443
SHARES REDEEMED - CLASS A ............................................................. (2,065,636) (5,192,817)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .................................. 1,181,447 (1,384,393)
-------------------------------------
SHARES SOLD - CLASS B ................................................................. 59,830 149,510
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 160,099 115,955
SHARES REDEEMED - CLASS B ............................................................. (226,238) (453,697)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .................................. (6,309) (188,232)
-------------------------------------
SHARES SOLD - CLASS C ................................................................. 44,967 108,417
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 40,521 22,030
SHARES REDEEMED - CLASS C ............................................................. (58,419) (92,596)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .................................. 27,069 37,851
-------------------------------------
SHARES SOLD - CLASS D ................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .............................. N/A N/A
SHARES REDEEMED - CLASS D ............................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .................................. N/A N/A
-------------------------------------
SHARES SOLD - CLASS Z. ................................................................ 399,710 1,820,866
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............................. 784,849 685,399
SHARES REDEEMED - CLASS Z ............................................................. (906,679) (4,718,980)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .................................. 277,880 (2,212,715)
-------------------------------------
SHARES SOLD - ADMINISTRATOR CLASS ..................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS .................. N/A N/A
SHARES REDEEMED - ADMINISTRATOR CLASS ................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ...................... N/A N/A
-------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS ..................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS ................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ...................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .. 1,480,087 (3,747,489)
=====================================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................. $ (631,876) $ 0
=====================================
SMALL CAP GROWTH FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A ................................................................. 4,257,797 991,578
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A .............................. 861,926 541,163
SHARES REDEEMED - CLASS A ............................................................. (1,929,345) (1,733,261)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .................................. 3,190,378 (200,520)
-------------------------------------
SHARES SOLD - CLASS B ................................................................. 47,113 91,449
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B .............................. 167,534 128,967
SHARES REDEEMED - CLASS B ............................................................. (470,012) (490,609)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .................................. (255,365) (270,193)
-------------------------------------
SHARES SOLD - CLASS C ................................................................. 73,084 99,614
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C .............................. 45,220 28,912
SHARES REDEEMED - CLASS C ............................................................. (67,391) (151,164)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .................................. 50,913 (22,638)
-------------------------------------
SHARES SOLD - CLASS D ................................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS D .............................. N/A N/A
SHARES REDEEMED - CLASS D ............................................................. N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .................................. N/A N/A
-------------------------------------
SHARES SOLD - CLASS Z. ................................................................ 112,681 262,495
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z .............................. (259,933) 208,103
SHARES REDEEMED - CLASS Z ............................................................. 301,194 (719,056)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .................................. 153,942 (248,458)
-------------------------------------
SHARES SOLD - ADMINISTRATOR CLASS ..................................................... 4,550,579 2,619,533
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS .................. 542,746 302,252
SHARES REDEEMED - ADMINISTRATOR CLASS ................................................. (3,423,883) (2,917,336)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ...................... 1,669,442 4,449
-------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS ..................................................... 544,193 1,478,897
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS .................. 427,888 199,136
SHARES REDEEMED - INSTITUTIONAL CLASS ................................................. (198,158) (300,230)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ...................... 773,923 1,377,803
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .. 5,583,233 640,443
=====================================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................. $ (1,770,971) $ 0
=====================================
63
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ..................................................................... $ 800,077,699 $ 704,713,980
OPERATIONS :
NET INVESTMENT INCOME (LOSS) ............................................................. 586,493 (811,064)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................................. 49,056,190 124,977,217
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...................... 41,075,640 27,479,178
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ....................... 90,718,323 151,645,331
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................... N/A N/A
CLASS B ............................................................................... N/A N/A
CLASS C ............................................................................... N/A N/A
CLASS Z ............................................................................... N/A N/A
ADMINISTRATOR CLASS ................................................................... 0 0
INSTITUTIONAL CLASS ................................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................... N/A N/A
CLASS B ............................................................................... N/A N/A
CLASS C ............................................................................... N/A N/A
CLASS Z ............................................................................... N/A N/A
ADMINISTRATOR CLASS ................................................................... (123,821,125) (55,163,405)
-------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ................................................... (123,821,125) (55,163,405)
-------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ...................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS A .................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS A ........................................................ N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ... N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ...................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS B .................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS B ........................................................ N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B ... N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ...................................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - CLASS C .................................................. N/A N/A
COST OF SHARES REDEEMED - CLASS C ........................................................ N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C ... N/A N/A
-------------------------------------
PROCEEDS FROM SHARES SOLD - 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 .......................................... 142,671,659 262,833,199
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ...................................... 119,828,957 53,050,887
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ............................................ (147,431,437) (317,002,293)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
ADMINISTRATOR CLASS ...................................................................... 115,069,179 (1,118,207)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL ....................................................... 115,069,179 (1,118,207)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ................................................. 81,966,377 95,363,719
-------------------------------------
ENDING NET ASSETS ..................................................................... $ 882,044,076 $ 800,077,699
=====================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
64
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ..................................................................... $ 3,500,023,838 $ 2,812,962,837
OPERATIONS :
NET INVESTMENT INCOME (LOSS) ............................................................. (7,777,105) (4,853,153)
NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................................. 195,131,201 318,769,851
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ...................... 207,905,448 130,505,746
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ....................... 395,259,544 444,422,444
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
CLASS A ............................................................................... 0 0
CLASS B ............................................................................... 0 0
CLASS C ............................................................................... 0 0
CLASS Z ............................................................................... 0 0
ADMINISTRATOR CLASS ................................................................... N/A N/A
INSTITUTIONAL CLASS ................................................................... N/A N/A
NET REALIZED GAIN ON SALES OF INVESTMENTS
CLASS A ............................................................................... (58,821,788) (60,734,940)
CLASS B ............................................................................... (12,074,266) (13,736,061)
CLASS C ............................................................................... (13,497,685) (14,918,850)
CLASS Z ............................................................................... (229,863,190) (196,037,895)
ADMINISTRATOR CLASS ................................................................... N/A N/A
-------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ................................................... (314,256,929) (285,427,746)
-------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A ...................................................... 111,819,660 292,357,377
REINVESTMENT OF DISTRIBUTIONS - CLASS A .................................................. 57,137,850 58,758,631
COST OF SHARES REDEEMED - CLASS A ........................................................ (156,673,526) (333,227,961)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS A ... 12,283,984 17,888,047
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS B ...................................................... 2,205,404 2,723,906
REINVESTMENT OF DISTRIBUTIONS - CLASS B .................................................. 11,302,227 12,971,140
COST OF SHARES REDEEMED - CLASS B ........................................................ (15,127,749) (25,498,136)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS B ... (1,620,118) (9,803,090)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS C ...................................................... 5,069,292 8,020,523
REINVESTMENT OF DISTRIBUTIONS - CLASS C .................................................. 11,474,049 12,775,333
COST OF SHARES REDEEMED - CLASS C ........................................................ (17,501,213) (28,582,017)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS C ... (957,872) (7,786,161)
-------------------------------------
PROCEEDS FROM SHARES SOLD - CLASS Z ...................................................... 728,193,023 2,038,487,207
REINVESTMENT OF DISTRIBUTIONS - CLASS Z .................................................. 227,358,770 193,439,800
COST OF SHARES REDEEMED - CLASS Z ........................................................ (705,240,292) (1,704,159,500)
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS - CLASS Z ... 250,311,501 527,767,507
-------------------------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS .......................................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ...................................... N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS ............................................ N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS -
ADMINISTRATOR CLASS ...................................................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL ....................................................... 260,017,495 528,066,303
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ................................................. 341,020,110 687,061,001
-------------------------------------
ENDING NET ASSETS ..................................................................... $ 3,841,043,948 $ 3,500,023,838
=====================================
65
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................. N/A N/A
SHARES REDEEMED - CLASS A ................................................................ N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .................................. N/A N/A
-------------------------------------
SHARES SOLD - CLASS B .................................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ................................. N/A N/A
SHARES REDEEMED - CLASS B ................................................................ N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .................................. N/A N/A
-------------------------------------
SHARES SOLD - CLASS C .................................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ................................. N/A N/A
SHARES REDEEMED - CLASS C ................................................................ N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .................................. N/A N/A
-------------------------------------
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 ........................................................ 4,019,075 7,238,823
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ..................... 3,514,046 1,585,976
SHARES REDEEMED - ADMINISTRATOR CLASS .................................................... (4,161,261) (8,824,680)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ...................... 3,371,860 119
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ..... 3,371,860 119
=====================================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................................ $ 586,493 $ 0
=====================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
66
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED:
SHARES SOLD - CLASS A .................................................................... 3,506,867 9,220,790
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS A ................................. 1,855,125 1,939,872
SHARES REDEEMED - CLASS A ................................................................ (4,927,724) (10,520,984)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .................................. 434,268 639,678
-------------------------------------
SHARES SOLD - CLASS B .................................................................... 74,210 91,897
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS B ................................. 389,195 448,363
SHARES REDEEMED - CLASS B ................................................................ (505,076) (846,539)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .................................. (41,671) (306,279)
-------------------------------------
SHARES SOLD - CLASS C .................................................................... 172,556 271,409
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS C ................................. 394,026 440,529
SHARES REDEEMED - CLASS C ................................................................ (585,561) (949,691)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .................................. (18,979) (237,753)
-------------------------------------
SHARES SOLD - CLASS Z .................................................................... 22,609,126 63,651,310
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - CLASS Z ................................. (21,881,318) 6,323,672
SHARES REDEEMED - CLASS Z ................................................................ 7,296,494 (53,258,370)
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .................................. 8,024,302 16,716,612
-------------------------------------
SHARES SOLD - ADMINISTRATOR CLASS ........................................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS ..................... N/A N/A
SHARES REDEEMED - ADMINISTRATOR CLASS .................................................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ...................... N/A N/A
-------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ..... 8,397,920 16,812,258
=====================================
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ................................ $ (20,067,542) $ (12,290,437)
=====================================
67
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $23.79 0.01 2.39 (0.06) (2.66)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $20.76 0.05(6) 4.72 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $23.38 (0.04) 2.32 0.00 (2.66)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $20.57 (0.11)(6) 4.66 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $23.39 0.00 2.28 0.00 (2.66)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $20.57 (0.12)(6) 4.68 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $23.86 0.02 2.41 (0.08) (2.66)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $20.79 0.08(6) 4.73 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)
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $23.93 (0.01) 2.45 (0.08) (2.66)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $20.82 0.10(6) 4.75 (0.00) (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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $24.02 0.06 2.42 (0.15) (2.66)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $20.88 0.16(6) 4.76 (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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $23.84 (0.02) 2.62 0.00 (5.11)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $22.97 (0.03)(6) 4.08 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... $22.40 (0.11) 1.06 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. $21.98 (0.14)(6) 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)(6) (3.76) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. $20.15 (0.04) (0.36) 0.00 (0.04)
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $22.67 (0.10)(6) 2.47 0.00 (5.11)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $22.13 (0.20)(6) 3.92 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... $21.74 (0.29) 1.06 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. $21.53 (0.29)(6) 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)(6) (3.73) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. $20.16 (0.09) (0.41) 0.00 (0.04)
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $22.67 (0.10)(6) 2.47 0.00 (5.11)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $22.13 (0.20)(6) 3.92 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... $21.73 (0.47) 1.25 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. $21.53 (0.30)(6) 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)(6) (3.72) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. $20.16 (0.09) (0.41) 0.00 (0.04)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
68
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSET
REALIZED VALUE PER
GAINS SHARE
- ------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- ------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $23.47
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $23.79
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. 0.00 $20.76
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. 0.00 $18.89
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $23.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $23.38
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. 0.00 $20.57
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. 0.00 $18.86
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $23.01
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $23.39
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. 0.00 $20.57
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. 0.00 $18.86
CLASS D
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $23.55
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $23.86
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. 0.00 $20.79
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 ............. 0.00 $18.89
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 ............. 0.00 $17.96
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 ............. 0.00 $13.15
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $23.63
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $23.93
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. 0.00 $20.82
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. 0.00 $18.90
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $23.69
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $24.02
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. 0.00 $20.88
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. 0.00 $18.91
COMMON STOCK FUND
- ------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $21.33
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $23.84
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 0.00 $22.97
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. 0.00 $22.40
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. 0.00 $21.98
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. 0.00 $15.87
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. 0.00 $19.71
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $19.93
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $22.67
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 0.00 $22.13
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. 0.00 $21.74
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. 0.00 $21.53
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. 0.00 $15.67
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. 0.00 $19.62
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $19.93
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $22.67
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 0.00 $22.13
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. 0.00 $21.73
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. 0.00 $21.53
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. 0.00 $15.68
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. 0.00 $19.62
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
--------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- -------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.17% 1.37% 0.00% 1.37%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.21% 1.40% (0.02)% 1.38%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. (0.40)% 1.38% 0.00% 1.38%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. (0.18)% 1.41% (0.01)% 1.40%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.58)% 2.11% 0.00% 2.11%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.54)% 2.15% (0.02)% 2.13%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. (1.15)% 2.13% 0.00% 2.13%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. (0.95)% 2.16% (0.01)% 2.15%
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.58)% 2.12% 0.00% 2.12%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.55)% 2.15% (0.02)% 2.13%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. (1.15)% 2.13% 0.00% 2.13%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. (0.98)% 2.16% (0.01)% 2.15%
CLASS D
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.29% 1.37% (0.12)% 1.25%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.35% 1.40% (0.15)% 1.25%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. (0.27)% 1.37% (0.12)% 1.25%
NOVEMBER 1, 2003 TO OCTOBER 31, 2004 ............. (0.08)% 1.19% (0.04)% 1.15%
NOVEMBER 1, 2002 TO OCTOBER 31, 2003 ............. 0.01% 1.27% 0.00% 1.27%
NOVEMBER 1, 2001 TO OCTOBER 31, 2002 ............. (0.07)% 1.54% (0.17)% 1.37%
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.37% 1.19% (0.04)% 1.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.46% 1.22% (0.07)% 1.15%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. (0.12)% 1.13% (0.03)% 1.10%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. 0.03% 1.17% (0.02)% 1.15%
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.67% 0.92% (0.02)% 0.90%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.74% 0.95% (0.05)% 0.90%
NOVEMBER 1, 2004 TO OCTOBER 31, 2005 ............. 0.07% 0.94% (0.04)% 0.90%
JULY 26, 2004(4) TO OCTOBER 31, 2004 ............. 0.40% 0.96% (0.06)% 0.90%
COMMON STOCK FUND
- -------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.23)% 1.35% (0.04)% 1.31%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.15)% 1.34% (0.03)% 1.31%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... (0.48)% 1.44% (0.03)% 1.41%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. (0.62)% 1.58% (0.04)% 1.54%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. (0.62)% 1.55% (0.01)% 1.54%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. (0.50)% 1.55% 0.00% 1.55%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. (0.51)% 1.65% (0.01)% 1.64%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.98)% 2.10% (0.04)% 2.06%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.90)% 2.09% (0.03)% 2.06%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... (1.23)% 2.20% (0.04)% 2.16%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. (1.36)% 2.32% (0.04)% 2.28%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. (1.41)% 2.35% (0.01)% 2.34%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. (1.31)% 2.36% 0.00% 2.36%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. (1.12)% 2.55% (0.29)% 2.26%
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.99)% 2.10% (0.04)% 2.06%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.90)% 2.09% (0.03)% 2.06%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... (1.25)% 2.21% (0.04)% 2.17%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. (1.38)% 2.35% (0.04)% 2.31%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. (1.41)% 2.35% (0.01)% 2.34%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. (1.31)% 2.37% (0.01)% 2.36%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. (1.09)% 2.39% (0.16)% 2.23%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- -----------------------------------------------------------------------------------------------
C&B MID CAP VALUE FUND
- -----------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 10.84% 20% $ 56,854
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 24.44% 39% $ 41,729
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 10.44% 20% $ 17,413
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 23.53% 39% $ 15,491
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 10.44% 20% $ 16,525
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 23.58% 39% $ 11,523
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 10.94% 20% $794,100
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 24.60% 39% $611,237
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
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 10.97% 20% $114,629
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 24.79% 39% $ 82,402
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 11.08% 20% $ 52,650
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 25.12% 39% $ 55,799
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 12.71% 27% $ 62,926
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 19.11% 56% $ 64,915
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 12.27% 27% $ 33,435
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 18.23% 56% $ 34,205
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 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
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 12.28% 27% $ 19,010
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 18.24% 56% $ 18,885
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 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
69
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
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 24.18 (0.02)(6) 2.66 0.00 (5.11)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $ 23.25 (0.03)(6) 4.14 0.00 (3.18)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... $ 22.65 (0.07) 1.05 0.00 (0.38)
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. $ 22.15 (0.08)(6) 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)(6) (3.76) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. $ 20.16 (0.02) (0.32) 0.00 (0.04)
MID CAP GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 6.69 (0.03) 0.93 0.00 (0.88)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $ 6.37 (0.05) 0.92 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... $ 6.50 0.00(6) (0.13) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 5.84 (0.07)(6) 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(7) ............ $ 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)
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 6.37 (0.04) 0.87 0.00 (0.88)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $ 6.13 (0.11) 0.90 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... $ 6.26 (0.01)(6) (0.12) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 5.68 (0.12)(6) 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(7) ............ $ 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 6.36 (0.04) 0.86 0.00 (0.88)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $ 6.13 (0.09) 0.87 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... $ 6.26 (0.01)(6) (0.12) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 5.68 (0.12)(6) 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(7) ............ $ 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 6.67 (0.03) 0.92 0.00 (0.88)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $ 6.37 (0.07) 0.92 0.00 (0.55)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... $ 6.50 (0.01)(6) (0.12) 0.00 0.00
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 .......... $ 5.95 (0.05)(6) 0.60 0.00 0.00
SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 14.03 (0.05) 1.43 0.00 (1.54)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $ 12.19 (0.16) 2.93 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... $ 12.53 (0.02) (0.32) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 10.67 (0.13)(6) 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(7) ............ $ 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)
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... $ 13.65 (0.19) 1.47 0.00 (1.54)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. $ 11.97 (0.28) 2.89 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... $ 12.31 (0.02) (0.32) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ $ 10.57 (0.22)(6) 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(7) ............ $ 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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSET
REALIZED VALUE PER
GAINS SHARE
- ------------------------------------------------------------------------------
COMMON STOCK FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $21.71
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $24.18
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 0.00 $23.25
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. 0.00 $22.65
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. 0.00 $22.15
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. 0.00 $15.97
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. 0.00 $19.78
MID CAP GROWTH FUND
- ------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $ 6.71
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $ 6.69
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... 0.00 $ 6.37
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 6.50
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 5.84
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ 0.00 $ 5.09
JULY 1, 2002 TO JUNE 30, 2003 .................... 0.00 $ 4.77
JULY 1, 2001 TO JUNE 30, 2002 .................... 0.00 $ 4.82
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $ 6.32
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $ 6.37
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... 0.00 $ 6.13
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 6.26
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 5.68
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ 0.00 $ 4.99
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 0.00 $ 4.68
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $ 6.30
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $ 6.36
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... 0.00 $ 6.13
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $ 6.26
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $ 5.68
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ 0.00 $ 4.98
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 0.00 $ 4.68
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $ 6.68
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $ 6.67
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... 0.00 $ 6.37
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 .......... 0.00 $ 6.50
SMALL CAP GROWTH FUND
- ------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $13.87
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $14.03
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... 0.00 $12.19
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $12.53
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $10.67
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ 0.00 $ 9.44
JULY 1, 2002 TO JUNE 30, 2003 .................... 0.00 $ 8.93
JULY 1, 2001 TO JUNE 30, 2002 .................... 0.00 $ 8.61
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 0.00 $13.39
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 0.00 $13.65
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... 0.00 $11.97
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ 0.00 $12.31
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ 0.00 $10.57
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ 0.00 $ 9.41
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 0.00 $ 8.93
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
-------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ------------------------------------------------------------------------------------------------------
COMMON STOCK FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.22)% 1.52% (0.23)% 1.29%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.13)% 1.51% (0.22)% 1.29%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... (0.38)% 1.47% (0.16)% 1.31%
JANUARY 1, 2004 TO DECEMBER 31, 2004 ............. (0.38)% 1.34% (0.04)% 1.30%
JANUARY 1, 2003 TO DECEMBER 31, 2003 ............. (0.42)% 1.36% (0.01)% 1.35%
JANUARY 1, 2002 TO DECEMBER 31, 2002 ............. (0.28)% 1.34% (0.01)% 1.33%
JANUARY 1, 2001 TO DECEMBER 31, 2001 ............. (0.10)% 1.29% 0.00% 1.29%
MID CAP GROWTH FUND
- ------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.73)% 1.42% (0.02)% 1.40%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.69)% 1.48% (0.08)% 1.40%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (0.96)% 1.41% (0.01)% 1.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ (1.19)% 1.42% (0.01)% 1.41%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ (0.44)% 1.50% (0.07)% 1.43%
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ (1.03)% 1.42% 0.00% 1.42%
JULY 1, 2002 TO JUNE 30, 2003 .................... (0.65)% 1.86% (0.37)% 1.49%
JULY 1, 2001 TO JUNE 30, 2002 .................... (0.80)% 3.10% (1.60)% 1.50%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (1.48)% 2.17% (0.02)% 2.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (1.43)% 2.23% (0.08)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (1.71)% 2.16% (0.01)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ (2.00)% 2.17% (0.01)% 2.16%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ (0.64)% 2.26% (0.08)% 2.18%
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ (1.78)% 2.17% 0.00% 2.17%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 3.82% 2.22% (0.08)% 2.14%
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (1.48)% 2.17% (0.02)% 2.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (1.45)% 2.23% (0.08)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (1.71)% 2.16% (0.01)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ (2.00)% 2.17% (0.01)% 2.16%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ (0.70)% 2.26% (0.08)% 2.18%
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ (1.78)% 2.17% 0.00% 2.17%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 4.05% 2.22% (0.10)% 2.12%
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (0.90)% 1.59% (0.02)% 1.57%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (0.84)% 1.65% (0.08)% 1.57%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (1.13)% 1.58% (0.01)% 1.57%
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 .......... (1.69)% 1.56% (0.01)% 1.55%
SMALL CAP GROWTH FUND
- ------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (1.08)% 1.56% (0.16)% 1.40%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (1.15)% 1.61% (0.21)% 1.40%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (1.27)% 1.56% (0.16)% 1.40%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ (1.14)% 1.58% (0.18)% 1.40%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ (1.08)% 1.69% (0.29)% 1.40%
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ (1.13)% 1.69% (0.29)% 1.40%
JULY 1, 2002 TO JUNE 30, 2003 .................... (1.06)% 1.53% (0.13)% 1.40%
JULY 1, 2001 TO JUNE 30, 2002 .................... (0.68)% 1.51% (0.11)% 1.40%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... (1.83)% 2.30% (0.15)% 2.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. (1.90)% 2.36% (0.21)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (2.02)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............ (1.90)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ............ (1.86)% 2.48% (0.33)% 2.15%
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ............ (1.88)% 2.43% (0.28)% 2.15%
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. (1.06)% 2.28% (0.13)% 2.15%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- -----------------------------------------------------------------------------------------------
COMMON STOCK FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 12.70% 27% $1,046,910
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 19.14% 56% $ 991,457
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ........... 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
MID CAP GROWTH FUND
- -----------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 14.64% 50% $ 112,015
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 14.38% 123% $ 103,816
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (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(7) ............ 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 14.23% 50% $ 7,380
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 13.58% 123% $ 7,482
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (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(7) ............ 6.62% 55% $ 5,216
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 0.21% 142% $ 4,599
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 14.07% 50% $ 2,104
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 13.40% 123% $ 1,950
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (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(7) ............ 6.41% 55% $ 607
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 0.21% 142% $ 493
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 14.52% 50% $ 39,877
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 14.05% 123% $ 37,968
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (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, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 10.42% 60% $ 153,773
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 23.82% 142% $ 110,813
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (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(7) ............ 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ... 10.02% 60% $ 16,428
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 ............. 22.86% 142% $ 20,226
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ........... (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(7) ............ 5.38% 47% $ 114
JUNE 9, 2003(4) TO JUNE 30, 2003 ................. 0.56% 169% $ 30
71
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)
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 13.66 (0.10) 1.39 0.00 (1.54)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 11.98 (0.25) 2.86 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ............ $ 12.33 (0.02) (0.33) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. $ 10.58 (0.22)(6) 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(7) ............. $ 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, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 13.99 (0.08) 1.44 0.00 (1.54)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 12.18 (0.19) 2.93 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ............ $ 12.52 (0.01) (0.33) 0.00 0.00
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ........... $ 11.06 (0.07)(6) 1.53 0.00 0.00
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 14.12 (0.08) 1.48 0.00 (1.54)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 12.24 (0.13) 2.94 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ............ $ 12.59 (0.01) (0.34) 0.00 0.00
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ............. $ 10.70 (0.11)(6) 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(7) ............. $ 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
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 14.19 (0.06) 1.49 0.00 (1.54)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 12.26 (0.11) 2.97 0.00 (0.93)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ............ $ 12.61 (0.01) (0.34) 0.00 0.00
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ........... $ 11.10 (0.04)(6) 1.55 0.00 0.00
SMALL CAP OPPORTUNITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 38.56 0.02 3.97 0.00 (5.98)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 33.97 (0.04) 7.30 0.00 (2.67)
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ............ $ 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)
SMALL CAP VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 32.63 (0.07) 3.57 0.00 (2.96)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 31.17 (0.04) 4.61 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ............ $ 29.19 (0.18) 2.67 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .............. $ 27.40 (0.27)(6) 5.51 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .............. $ 18.92 (0.12)(6) 9.26 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 .............. $ 20.17 0.03(6) (1.28) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .............. $ 17.17 (0.14)(6) 3.18 0.00 (0.04)
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 30.96 (0.19) 3.38 0.00 (2.96)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 29.92 (0.35) 4.50 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ............ $ 28.21 (0.40) 2.62 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .............. $ 26.79 (0.47)(6) 5.34 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .............. $ 18.66 (0.29)(6) 9.08 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 .............. $ 20.05 (0.14)(6) (1.25) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .............. $ 17.16 (0.25)(6) 3.18 0.00 (0.04)
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 31.03 (0.19) 3.39 0.00 (2.96)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 29.99 (0.34) 4.49 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ............ $ 28.27 (0.44) 2.67 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .............. $ 26.83 (0.47)(6) 5.36 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .............. $ 18.68 (0.28)(6) 9.09 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 .............. $ 20.07 (0.13)(6) (1.26) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .............. $ 17.17 (0.24)(6) 3.18 0.00 (0.04)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
72
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSET
REALIZED VALUE PER
GAINS SHARE
- -----------------------------------------------------------------------------------
SMALL CAP GROWTH FUND (CONTINUED)
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 13.41
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 13.66
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ 0.00 $ 11.98
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................. 0.00 $ 12.33
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................. 0.00 $ 10.58
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ................. 0.00 $ 9.42
JUNE 9, 2003(4) TO JUNE 30, 2003 ...................... 0.00 $ 8.93
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 13.81
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 13.99
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ 0.00 $ 12.18
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ............... 0.00 $ 12.52
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 13.98
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 14.12
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ 0.00 $ 12.24
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................. 0.00 $ 12.59
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................. 0.00 $ 10.70
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ................. 0.00 $ 9.44
JUNE 9, 2003(4) TO JUNE 30, 2003 ...................... 0.00 $ 8.94
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 14.08
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 14.19
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ 0.00 $ 12.26
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ............... 0.00 $ 12.61
SMALL CAP OPPORTUNITIES FUND
- -----------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 36.57
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 38.56
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ 0.00 $ 33.97
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................. 0.00 $ 34.93
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................. 0.00 $ 33.46
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ................. 0.00 $ 27.57
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ................. 0.00 $ 22.70
SMALL CAP VALUE FUND
- -----------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 33.17
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 32.63
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 0.00 $ 31.17
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 29.19
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 27.40
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 18.92
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $ 20.17
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 31.19
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 30.96
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 0.00 $ 29.92
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 28.21
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 26.79
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 18.66
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $ 20.05
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 31.27
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 31.03
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 0.00 $ 29.99
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 28.27
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 26.83
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 18.68
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $ 20.07
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
---------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND (CONTINUED)
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.83)% 2.30% (0.15)% 2.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (1.90)% 2.36% (0.21)% 2.15%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (2.02)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................. (1.90)% 2.31% (0.16)% 2.15%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................. (1.86)% 2.48% (0.33)% 2.15%
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ................. (1.91)% 2.47% (0.32)% 2.15%
JUNE 9, 2003(4) TO JUNE 30, 2003 ...................... (1.06)% 2.28% (0.13)% 2.15%
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.25)% 1.72% (0.15)% 1.57%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (1.32)% 1.78% (0.21)% 1.57%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (1.44)% 1.73% (0.16)% 1.57%
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ............... (1.33)% 1.72% (0.15)% 1.57%
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.88)% 1.38% (0.18)% 1.20%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.95)% 1.43% (0.23)% 1.20%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (1.07)% 1.38% (0.18)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................. (0.94)% 1.37% (0.17)% 1.20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................. (1.20)% 1.54% (0.34)% 1.20%
JULY 1, 2003 TO SEPTEMBER 30, 2003(7) ................. (0.99)% 1.46% (0.26)% 1.20%
JUNE 9, 2003(4) TO JUNE 30, 2003 ...................... (1.06)% 1.28% (0.08)% 1.20%
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.58)% 1.11% (0.21)% 0.90%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.64)% 1.16% (0.26)% 0.90%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (0.77)% 1.11% (0.21)% 0.90%
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ............... (0.65)% 1.15% (0.23)% 0.92%
SMALL CAP OPPORTUNITIES FUND
- -------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.14% 1.33% (0.13)% 1.20%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.11)% 1.34% (0.14)% 1.20%
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (0.35)% 1.33% (0.13)% 1.20%
OCTOBER 1, 2004 TO SEPTEMBER 30, 2005 ................. (0.28)% 1.29% (0.09)% 1.20%
OCTOBER 1, 2003 TO SEPTEMBER 30, 2004 ................. (0.27)% 1.30% (0.10)% 1.20%
OCTOBER 1, 2002 TO SEPTEMBER 30, 2003 ................. (0.57)% 1.31% (0.11)% 1.20%
OCTOBER 1, 2001 TO SEPTEMBER 30, 2002 ................. (0.81)% 1.27% (0.02)% 1.25%
SMALL CAP VALUE FUND
- -------------------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.43)% 1.44% 0.00% 1.44%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.15)% 1.44% (0.01)% 1.43%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ (0.70)% 1.50% (0.03)% 1.47%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.96)% 1.57% (0.04)% 1.53%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.55)% 1.56% (0.02)% 1.54%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.14% 1.58% (0.01)% 1.57%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.73)% 1.60% (0.01)% 1.59%
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.18)% 2.19% 0.00% 2.19%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.91)% 2.19% (0.01)% 2.18%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ (1.46)% 2.26% (0.02)% 2.24%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.71)% 2.33% (0.05)% 2.28%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (1.37)% 2.36% (0.01)% 2.35%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (0.69)% 2.41% (0.01)% 2.40%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (1.40)% 2.50% (0.23)% 2.27%
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.18)% 2.19% 0.00% 2.19%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.91)% 2.19% (0.01)% 2.18%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ (1.46)% 2.26% (0.02)% 2.24%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.71)% 2.34% (0.05)% 2.29%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (1.32)% 2.34% (0.02)% 2.32%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (0.64)% 2.38% (0.01)% 2.37%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (1.38)% 2.39% (0.15)% 2.24%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) 000'S OMITTED)
- ----------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND (CONTINUED)
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 10.09% 60% $ 7,105
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 22.84% 142% $ 6,543
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (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(7) ................. 5.49% 47% $ 82
JUNE 9, 2003(4) TO JUNE 30, 2003 ...................... 0.56% 169% $ 11
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 10.46% 60% $ 38,729
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 23.59% 142% $ 37,082
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (2.72)% 10% $ 35,304
APRIL 11, 2005(4) TO SEPTEMBER 30, 2005 ............... 13.20% 149% $ 37,511
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 10.58% 60% $ 85,041
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 24.07% 142% $ 62,302
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (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(7) ................. 5.59% 47% $ 335
JUNE 9, 2003(4) TO JUNE 30, 2003 ...................... 0.67% 169% $ 14
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 10.76% 60% $ 66,380
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 24.46% 142% $ 55,921
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.46% 30% $ 882,044
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 22.57% 79% $ 800,078
OCTOBER 1, 2005 TO OCTOBER 31, 2005(5) ................ (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
SMALL CAP VALUE FUND
- ----------------------------------------------------------------------------------------------------
CLASS A
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.43% 23% $ 681,405
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 15.44% 33% $ 656,151
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 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
CLASS B
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.01% 23% $ 128,627
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.61% 33% $ 128,970
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 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
CLASS C
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.02% 23% $ 144,386
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.57% 33% $ 143,872
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 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
73
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 VALUE FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) .... $ 32.98 (0.05) 3.60 0.00 (2.96)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .............. $ 31.45 (0.02) 4.66 0.00 (3.11)
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ............ $ 29.40 (0.15) 2.71 0.00 (0.51)
JANUARY 1, 2004 TO DECEMBER 31, 2004 .............. $ 27.53 (0.22)(6) 5.54 0.00 (3.45)
JANUARY 1, 2003 TO DECEMBER 31, 2003 .............. $ 18.98 (0.09)(6) 9.30 (0.01) (0.65)
JANUARY 1, 2002 TO DECEMBER 31, 2002 .............. $ 20.22 0.04(6) (1.28) 0.00 0.00
JANUARY 1, 2001 TO DECEMBER 31, 2001 .............. $ 17.17 (0.08)(6) 3.17 0.00 (0.04)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
74
FINANCIAL HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
IN EXCESS OF NET ASSET
REALIZED VALUE PER
GAINS SHARE
- -----------------------------------------------------------------------------------
SMALL CAP VALUE FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $ 33.57
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $ 32.98
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 0.00 $ 31.45
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 29.40
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 27.53
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 18.98
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $ 20.22
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
---------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.36)% 1.61% (0.25)% 1.36%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.05)% 1.61% (0.25)% 1.36%
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ (0.57)% 1.58% (0.24)% 1.34%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.79)% 1.40% (0.04)% 1.36%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.41)% 1.42% (0.02)% 1.40%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.21% 1.49% (0.01)% 1.48%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.48)% 1.41% 0.00% 1.41%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- ----------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND (CONTINUED)
CLASS Z
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.46% 23% $ 2,886,626
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 15.53% 33% $ 2,571,031
JANUARY 1, 2005 TO OCTOBER 31, 2005(8) ................ 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
75
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 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) The Fund changed its year end from September 30 to October 31.
(6) Calculated based upon average shares outstanding.
(7) The Fund changed its year end from June 30 to September 30.
(8) The Fund changed its year end from December 31 to October 31.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
76
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
April 30, 2007, was comprised of 109 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.
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. ("NASDAQ") are valued at the NASDAQ Official Closing
Price ("NOCP"), and if no NOCP is available, then at the last reported sales
price. If no sales price is shown on NASDAQ, the bid price will be used. In the
absence of any sale of securities listed on the NASDAQ, and in the case of other
securities, including U.S. Government obligations, but excluding debt securities
maturing in 60 days or less, the price will be deemed "stale" and the valuations
will be determined in accordance with the Funds' Fair Valuation Procedures.
Investments in the Underlying Funds are valued at the closing net asset value
per share of each Underlying Fund on the valuation date.
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 established in good
faith and approved by the Board of Trustees.
77
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 Portfolio of Investments. The following
positions were held by the Small Cap Value Fund at April 30, 2007:
Market Unrealized Dividend % of Shares
Security Name Shares Cost Value Gain/Loss Income Outstanding
- -------------------------------------------------------------------------------------------------------------------------------
APEX SILVER MINES LIMITED 4,653,680 $ 63,338,635 $ 69,758,663 $ 6,420,028 $ 0 7.96
- -------------------------------------------------------------------------------------------------------------------------------
CHAMPION ENTERPRISES INCORPORATED 6,206,320 57,738,038 63,800,970 6,062,932 0 8.10
- -------------------------------------------------------------------------------------------------------------------------------
CHINA GRENTECH CORPORATION LIMITED ADR 1,851,840 25,610,008 18,296,179 (7,313,829) 0 7.41
- -------------------------------------------------------------------------------------------------------------------------------
CONSTAR INTERNATIONAL INCORPORATED 823,100 7,840,035 7,267,973 (572,062) 0 6.54
- -------------------------------------------------------------------------------------------------------------------------------
COVENANT TRANSPORT INCORPORATED CLASS A 950,700 15,843,605 10,124,955 (5,718,650) 0 8.16
- -------------------------------------------------------------------------------------------------------------------------------
CRAY INCORPORATED 2,942,400 32,536,643 36,632,880 4,096,237 0 9.08
- -------------------------------------------------------------------------------------------------------------------------------
CROSS COUNTRY HEALTHCARE INCORPORATED 1,990,100 36,940,204 39,185,069 2,244,865 0 6.19
- -------------------------------------------------------------------------------------------------------------------------------
CV THERAPEUTICS INCORPORATED 3,056,600 59,838,753 25,767,138 (34,071,615) 0 5.15
- -------------------------------------------------------------------------------------------------------------------------------
FLEETWOOD ENTERPRISES INCORPORTED 5,664,145 46,783,232 47,182,328 399,096 0 8.84
- -------------------------------------------------------------------------------------------------------------------------------
GENTIVA HEALTH SERVICES INCORPORATED 1,590,900 27,122,801 29,781,648 2,658,847 0 5.75
- -------------------------------------------------------------------------------------------------------------------------------
GEO GROUP INCORPORATED 1,385,100 20,143,454 70,917,120 50,773,666 0 5.65
- -------------------------------------------------------------------------------------------------------------------------------
GLOBAL INDUSTRIES LIMITED 10,168,100 100,606,330 211,089,756 110,483,426 0 8.75
- -------------------------------------------------------------------------------------------------------------------------------
INTERMEC INCORPORATED 4,059,000 81,821,892 90,637,470 8,815,578 0 6.78
- -------------------------------------------------------------------------------------------------------------------------------
INTEROIL CORPORATION 1,530,800 31,347,543 43,444,104 12,096,561 0 5.12
- -------------------------------------------------------------------------------------------------------------------------------
INTERTAPE POLYMER GROUP INCORPORATED 4,539,470 37,131,805 22,243,403 (14,888,402) 0 11.08
- -------------------------------------------------------------------------------------------------------------------------------
LIGHTBRIDGE INCORPORATED 2,820,500 24,037,948 49,756,320 25,718,372 0 10.07
- -------------------------------------------------------------------------------------------------------------------------------
MCMORAN EXPLORATION COMPANY 2,651,620 36,658,854 34,179,382 (2,479,472) 0 9.36
- -------------------------------------------------------------------------------------------------------------------------------
NEWPARK RESOURCES INCORPORATED 6,456,800 38,200,284 53,074,896 14,874,612 0 7.19
- -------------------------------------------------------------------------------------------------------------------------------
ORASURE TECHNOLOGIES INCORPORATED 5,101,200 42,212,626 38,003,940 (4,208,686) 0 11.06
- -------------------------------------------------------------------------------------------------------------------------------
OSI SYSTEMS INCORPORATED 1,181,850 21,140,098 31,212,659 10,072,561 0 7.01
- -------------------------------------------------------------------------------------------------------------------------------
PHI INCORPORATED (NON-VOTING) 759,300 18,175,045 20,265,717 2,090,672 0 6.11
- -------------------------------------------------------------------------------------------------------------------------------
POWER-ONE INCORPORATED 5,276,500 35,171,243 22,477,890 (12,693,353) 0 6.08
- -------------------------------------------------------------------------------------------------------------------------------
RANDGOLD RESOURCES LIMITED ADR 4,704,900 67,883,316 112,682,355 44,799,039 451,500 6.89
- -------------------------------------------------------------------------------------------------------------------------------
US CONCRETE INCORPORATED 2,936,600 21,670,432 24,990,466 3,320,034 0 7.50
- -------------------------------------------------------------------------------------------------------------------------------
VIGNETTE CORPORATION 1,643,800 22,710,475 30,443,176 7,732,701 0 5.40
- -------------------------------------------------------------------------------------------------------------------------------
WEBCO INDUSTRIES INCORPORATED 99,270 5,717,635 9,430,603 3,712,968 0 13.96
- -------------------------------------------------------------------------------------------------------------------------------
WELLMAN INCORPORATED 2,097,300 9,763,561 6,669,414 (3,094,147) 64,701 6.39
- -------------------------------------------------------------------------------------------------------------------------------
WILLBROS GROUP INCORPORATED 1,659,510 23,106,946 39,264,007 16,157,061 0 6.44
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.
78
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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
distributions the earnings and profits distributed to shareholders on the
redemption of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under Subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of substantially all of its investment
company taxable income and any net realized capital gains (after reduction for
capital loss carryforwards) sufficient to relieve it from all, or substantially
all, federal income taxes. Accordingly, no provision for federal income taxes
was required at April 30, 2007.
At October 31, 2006, the Funds' prior fiscal year end, net capital loss
carryforwards, which are available to offset future net realized capital gains,
were:
Fund Expiration Year Capital Loss Carryforwards
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND 2007 $ 5,357,254
- --------------------------------------------------------------------------------
2008 3,028,013
- --------------------------------------------------------------------------------
2009 560,633
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND 2007 748,946
- --------------------------------------------------------------------------------
2008 13,314,868
- --------------------------------------------------------------------------------
2009 4,946,742
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND 2009 5,004,919
- --------------------------------------------------------------------------------
2010 31,042,725
- --------------------------------------------------------------------------------
2011 1,040,222
- --------------------------------------------------------------------------------
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
79
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 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,
2007 are shown on the Statements of Assets and Liabilities.
SWAP CONTRACTS
The Fund(s) 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, 2007, 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)
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCK Lehman Brothers $13,000,694 Notional Amount Market Value 06/04/07 $2,575,220
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus on Customized
Market Value Stock Index*
Depreciation on
Customized Stock Index*
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCK Lehman Brothers 5,858,398 Notional Amount Market Value 06/05/07 (634,087)
Finance x (3 Month USD Libor Appreciation
less 35 bps) plus on Customized
Market Value Stock Index**
Depreciation on
Customized Stock Index**
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCK Lehman Brothers 7,656,735 Notional Amount Market Value 10/29/07 1,496,513
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus on Customized
Market Value Stock Index***
Depreciation on
Customized Stock Index***
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCK Lehman Brothers 5,181,419 Notional Amount Market Value 04/18/08 216,664
Finance x (3 Month USD Libor Appreciation
less 35 bps) plus on Customized
Market Value Stock Index**
Depreciation on
Customized Stock Index****
* Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2007: Burlington Northern Santa Fe Corporation, CSX
Corporation, Kansas City Southern, Norfolk Southern Corporation and Union
Pacific Corporation.
** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2007: Apache Corporation and EOG Resources
Incorporated.
*** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2007: Rio Tinto plc, Freeport-McMoRan Copper & Gold
Incorporated and BHP Billiton Limited.
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
80
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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 six-month period ended April 30,
2007, were as follows:
Common Stock Fund Small Cap Value Fund
------------------------ -------------------------
Premiums Premiums
Call Options Written Contracts Received Contracts Received
- ------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD (1,830) $ (384,898) (191,681) $ (85,678,282)
- ------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN (14,176) (3,250,822) (300,610) (172,881,419)
- ------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS 5,700 1,289,556 409,094 192,449,956
- ------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED 3,880 775,530 3,650 849,276
- ------------------------------------------------------------------------------------------------------
OPTIONS SPLIT 0 0 10,817 9,052,869
- ------------------------------------------------------------------------------------------------------
OPTIONS EXERCISED 1,026 236,875 (10,057) 0
- ------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD (5,400) $ (1,333,759) (78,787) $ (56,207,600)
- ------------------------------------------------------------------------------------------------------
Small Cap Value Fund
---------------------
Premiums
Put Options Written Contracts Received
- ------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD 0 $ 0
- ------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN (800) (87,597)
- ------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS 800 87,597
- ------------------------------------------------------------------------------------------------------
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"). Funds Management is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
Pursuant to the contract, Funds Management is entitled to receive an
advisory fee for its services as adviser. Funds Management may retain the
services of certain investment subadvisers to provide daily portfolio
management. The fees related to subadvisory services are borne directly by the
adviser and do not increase the overall fees paid by a Fund to the adviser.
Funds Management and the investment subadviser(s) are entitled to be paid a
monthly fee at the following annual rates:
Subadvisory
Fees (% of
Advisory Fees Average
Average Daily (% of Average Average Daily Daily Net
Fund Net Assets Daily Net Assets) Subadviser Net Assets Assets)
- ---------------------------------------------------------------------------------------------------------------------------------
C&B MID CAP VALUE FUND First $500 million 0.750 Cooke & Bieler, LP First $250 million 0.550
Next $500 million 0.700 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 Management First $100 million 0.450
Next $500 million 0.700 Incorporated Next $100 million 0.400
Next $2 billion 0.650 Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
81
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Subadvisory
Fees (% of
Advisory Fees Average
Average Daily (% of Average Average Daily Daily Net
Fund Net Assets Daily Net Assets) Subadviser Net Assets Assets)
- ----------------------------------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND First $500 million 0.750 Wells Capital Management First $100 million 0.450
Next $500 million 0.700 Incorporated Next $100 million 0.400
Next $2 billion 0.650 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 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
- ----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND First $500 million 0.900 Schroder Investment First $275 million 0.500
Next $500 million 0.850 Management North America Over $275 million 0.450
Next $2 billion 0.800 Incorporated
Next $2 billion 0.775
Over $5 billion 0.750
- ----------------------------------------------------------------------------------------------------------------------------------
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
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 All asset levels 0.28
- -----------------------------------------------------------------------------------------
CLASS Z All asset levels 0.45
- -----------------------------------------------------------------------------------------
ADMINISTRATOR CLASS All asset levels 0.10
- -----------------------------------------------------------------------------------------
INSTITUTIONAL CLASS All asset levels 0.08
- -----------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
ALL SMALL AND MID CAP STOCK FUNDS 0.02
- --------------------------------------------------------------------------------
82
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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
- ----------------------------------------------------------------------------------------
For the six-month period ended April 30 2007, 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 $ 59,859 $ 20,370 $ 17,202 $853,540 N/A $ 126,024
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK FUND 79,067 42,056 23,424 N/A $1,259,703 N/A
- ---------------------------------------------------------------------------------------------------------
MID CAP GROWTH FUND 134,039 9,165 2,524 N/A 48,490 N/A
- ---------------------------------------------------------------------------------------------------------
SMALL CAP GROWTH FUND 183,195 23,682 8,581 N/A 47,434 92,986
- ---------------------------------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND N/A N/A N/A N/A N/A 1,037,213
- ---------------------------------------------------------------------------------------------------------
SMALL CAP VALUE FUND 821,840 158,678 177,449 N/A 3,344,734 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.
For the six-month period ended April 30, 2007, 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
Fund's Management has contractually committed through February 29, 2008 to
waive fees and/or reimburse expenses to the extent necessary to maintain a
certain net operating expense ratio for the Fund(s). Fund level expenses, when
waived, are waived proportionately among classes based upon relative net assets.
Class specific expenses may also be waived within a specific class. The
contractual net operating expense ratios in effect for the six-month period
ended April 30, 2007, were as follows:
Net Operating Expense Ratios
----------------------------
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
* The actual net operating expense ratios in effect for the six-month period
ended April 30, 2007, for the C&B Mid Cap Value Fund Classes A, B and C
were 1.37%, 2.11% and 2.12% respectively.
83
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
4. INVESTMENT PORTFOLIO TRANSACTIONS
- --------------------------------------------------------------------------------
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the six-month period ended April 30, 2007, were as
follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
C&B MIDCAP GROWTH FUND $308,516,167 $176,955,109
- --------------------------------------------------------------------------------
COMMON STOCK FUND 307,906,301 279,930,955
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND 76,437,195 95,715,148
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND 230,329,145 200,189,163
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND 227,170,659 260,684,308
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND 820,537,103 759,838,378
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 six-month period ended April 30,
2007, there were no borrowings by any of the Funds under this 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 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.
7. NEW ACCOUNTING PRONOUNCEMENTS
- --------------------------------------------------------------------------------
In June 2006, the Financial Accounting Standards Board ("FASB") issued
FASB Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income
Taxes." This standard defines the threshold for recognizing the benefits of
tax-return positions in the financial statements as "more-likely-than-not" to be
sustained by the taxing authority and requires measurement of a tax position
meeting the more-likely-than-not criterion, based on the largest benefit that is
more than 50 percent likely to be realized. FIN 48 is effective as of the
beginning of the first fiscal year beginning after December 15, 2006 (January 1,
2007 for calendar-year companies), with early application permitted if no
interim financial statements have been issued. In December 2006, the SEC issued
a letter allowing for an implementation delay for funds until the last NAV
calculation in the first required reporting period for fiscal years beginning
after December 15, 2006. As of April 30, 2007, Funds Management does not believe
the impact of the adoption of FIN 48 will be material to the financial
statements.
In September 2006, the FASB issued Statement on Financial Accounting
Standards ("SFAS") No. 157, "Fair Value Measurements." This standard establishes
a single authoritative definition of fair value, sets out a framework for
measuring fair value and requires additional disclosures about fair value
measurements. SFAS No. 157 applies to fair value measurements already required
or permitted by existing standards. SFAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007 and interim
periods within those fiscal years. The changes to current generally accepted
accounting principles from the application of this Statement relate to the
definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of April 30, 2007, Funds
Management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts, however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements on changes in net assets for the period.
84
OTHER INFORMATION WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 1-800-222-8222, visiting our Web site
at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at
WWW.SEC.GOV. Information regarding how the Funds voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge on the Funds' Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS or by 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
(except Money Market Funds) 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 144 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 Wake Forest University, Calloway None
64 School of Business and
Accountancy - The Thomas
Goho Chair of Finance since
January 2006. Associate Professor
of Finance from 1999 - 2005.
- --------------------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO and Co- None
64 (Chairman since 2005) Founder of Crystal Geyser
(Lead Trustee since Water Company and President
2001) of Crystal Geyser Roxane Water
Company.
- --------------------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, President None
73 of Richard M. Leach Associates
(a financial consulting firm).
- --------------------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk None
54 Management, Wharton School,
University of Pennsylvania.
Director of the Boettner Center
on Pensions and Retirement
Research. 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
55 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
66 Willeke & Daniels.
85
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS OTHER INFORMATION
- --------------------------------------------------------------------------------
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
62 Developer. Prior thereto,
Chairman of Whitepoint
Capital, LLC until 2004.
- --------------------------------------------------------------------------------------------------------------
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
48 Wells Fargo Bank, N.A. and
President of Wells Fargo Funds
Management, LLC since 2003.
Senior Vice President and Chief
Administrative Officer of Wells
Fargo Funds Management, LLC
from 2001 to 2003.
- --------------------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000; Senior Vice President and None
46 Chief Legal Counsel Secretary of Wells Fargo Funds
since 2003 Management, LLC since 2001.
Vice President and Managing
Senior Counsel of Wells Fargo
Bank, N.A. since 1996.
- --------------------------------------------------------------------------------------------------------------
A. Erdem Cimen**** Treasurer, since 2006 Vice President of Financial None
33 Operations for Wells Fargo
Funds Management, LLC since
2006. From 2001 to 2006, Vice
President of Wells Fargo Bank,
N.A. and Vice President of Wells
Fargo Bank, N.A. Auto Finance
Group. Vice President of
Portfolio Risk Management for
Wells Fargo Bank, N.A. Auto
Finance Group from 2004 to
2006.
- --------------------------------------------------------------------------------------------------------------
Dorothy A. Peters Chief Compliance Chief Compliance Officer None
45 Officer, since 2004 of Wells Fargo Funds
Management, LLC since 2004.
Chief Compliance Officer for
Wells Fargo Funds Management,
LLC 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, 2007, 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.
**** As of May 8, 2007, Stephen W. Leonhardt replaced A. Erdem Cimen as
Treasurer of the Funds.
86
OTHER INFORMATION WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUB-ADVISORY
AGREEMENTS:
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
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and sub-advisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will annually review and consider the continuation of
the investment advisory and sub-advisory agreements. In this regard, the Board
reviewed and re-approved, during the six months covered by this report: (i) an
investment advisory agreement with Wells Fargo Funds Management, LLC ("Funds
Management") for the 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 (the "Funds"); (ii) an investment sub-advisory agreement with Wells Capital
Management Incorporated ("Wells Capital Management") for the Common Stock Fund,
Mid Cap Growth Fund, Small Cap Growth Fund, and Small Cap Value Fund; (iii) an
investment sub-advisory agreement with Schroder Investment Management North
America Inc. ("Schroder") for the Small Cap Opportunities Fund; and (iv) an
investment sub-advisory agreement with Cooke & Bieler, L.P. ("Cooke & Bieler")
for the C&B Mid Cap Value Fund. The investment advisory agreement with Funds
Management and the investment sub-advisory agreements with Wells Capital
Management, Schroder and Cooke & Bieler (the "Sub-Advisers") are collectively
referred to as the "Advisory Agreements."
More specifically, at a meeting held on March 30, 2007, the Board,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and the Sub-Advisers and the continuation of
the Advisory Agreements. Prior to the March 30, 2007, meeting, the Board,
including the Independent Trustees, met in person and telephonically a number of
times, both with Funds Management and in private sessions, for discussions about
these continuations and approvals. The Independent Trustees were assisted in
their evaluation of the Advisory Agreements by independent legal counsel, from
whom they received separate legal advice and with whom they met separately from
Funds Management.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Board received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and the Sub-Advisers under the Advisory Agreements. The Board also
received and considered information provided in response to a detailed set of
requests submitted by the Independent Trustees' independent legal counsel,
including, among other things, information about the background and experience
of senior management and the expertise of, and amount of attention devoted to
the Funds by, investment personnel of Funds Management and the Sub-Advisers. In
this regard, the Board reviewed the qualifications, backgrounds and
responsibilities of the portfolio managers primarily responsible for day-to-day
portfolio management services for the Funds.
The Board evaluated the ability of Funds Management and the Sub-Advisers,
based on their respective resources, reputations and other attributes, to
attract and retain highly qualified investment professionals, including
research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance
records of Funds Management and the Sub-Advisers. In addition, the Board took
into account the administrative services provided to the Funds by Funds
Management and its affiliates. In considering these matters, the Board
considered not only the specific information presented in connection with the
meeting, but also the knowledge gained over the course of interacting with Funds
Management about various topics, including Funds Management's oversight of
service providers, such as the Sub-Advisers.
Based on the above factors, together with those referenced below, the
Board concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and the Sub-Advisers.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Board considered the performance results for each of the Funds over
various time periods ended December 31, 2006. The Board also considered these
results in comparison to the median performance results of the group of funds
that was determined by Lipper Inc. ("Lipper") to be the most similar to a given
Fund (the "Peer Group") and to the median performance of a broader universe of
relevant funds as determined by Lipper (the "Universe"), as well as to each
Fund's benchmark index. Lipper is an independent provider of investment company
data. The Board was provided with a description of the methodology used by
Lipper to select the mutual funds in each Fund's Peer Group and Universe.
The Board noted that the performance of each Fund, except the C&B Mid Cap
Value Fund, was better than, or not appreciably below, the median performance of
its Peer Group for all time periods. The Boards noted that the C&B Mid Cap Value
Fund's three-year performance was lower than the median performance of its Peer
Group and required further review. As part of its further review, the Board
87
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS OTHER INFORMATION
- --------------------------------------------------------------------------------
received an analysis of, and discussed factors contributing to, the
underperformance of the C&B Mid Cap Value Fund, but noted that the Fund's
performance improved in 2006, ranking in the top decile of its Peer Group for
the one-year period. The Board requested continued reports on the performance of
the C&B Mid Cap Value Fund.
The Board received and considered information regarding each Fund's net
operating expense ratio and its various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The
Board also considered comparisons of these fees to the expense information for
each Fund's Peer Group, which comparative data was provided by Lipper. The Board
noted that each Fund's net operating expense ratios were lower than, equal to,
or not appreciably higher than, each Fund's Peer Group's median net operating
expense ratios. The Board also considered and noted Funds Management's
recommendation to reduce certain of the Funds' net operating expense ratios in
coming to its conclusion.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUB-ADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Board reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services
(the "Advisory Agreement Rates"), both on a stand-alone basis and on a combined
basis with the Funds' administration fee rates. The Board took into account the
separate administrative services covered by the administration fee rates. The
Board also reviewed and considered the contractual investment sub-advisory fee
rates payable by Funds Management to the Sub-Advisers for investment
sub-advisory services (the "Sub-Advisory Agreement Rates"). In addition, the
Board reviewed and considered the existing fee waiver/cap arrangements
applicable to the Advisory Agreement Rates and considered the Advisory Agreement
Rates after taking the waivers/caps into account (the "Net Advisory Rates").
The Board received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in each
Fund's Peer Group and certain advisory fee reductions proposed by Funds
Management. The Board noted that the Advisory Agreement Rates and the Net
Advisory Rates for each Fund were lower than, or not appreciably higher than,
the median rates of each Fund's respective Peer Group. In addition, the Board
concluded that the combined investment advisory/administration fee rates for the
Funds (before and after waivers/caps and/or expense reimbursements) were
reasonable in relation to each Fund's respective Peer Group, and reasonable in
relation to the services provided. The Board also considered and noted Funds
Management's recommendation to reduce the administration fees for certain Funds
in coming to its conclusion.
The Board also reviewed and considered the Sub-Advisory Agreement Rates
and concluded that the Sub-Advisory Agreement Rates were fair and equitable,
based on its consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Board received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and Net Advisory Rates,
as well as an analysis of the profitability to other Wells Fargo businesses of
providing services to the Funds. The Board concluded that, in light of the costs
of providing investment management and other services to the Funds, the profits
and other ancillary benefits that Funds Management and its affiliates received
with regard to providing these services to the Funds were not unreasonable.
The Board did not consider a separate profitability analysis of Wells
Capital Management, as its separate profitability from its relationship with the
Common Stock Fund, Mid Cap Growth Fund, Small Cap Growth Fund and Small Cap
Value Fund was not a material factor in determining whether to renew the
agreements. The Board did not consider profitability information with respect to
Cooke & Bieler or Schroder, which are not affiliated with Funds Management. The
Board considered that the sub-advisory fees paid to Cooke & Bieler and Schroder
had been negotiated by Funds Management on an arm's length basis and that Cooke
& Bieler's and Schroder's separate profitability from their relationships with
the C&B Mid Cap Value Fund and Small Cap Opportunities Fund were not a material
factor in determining whether to renew the agreements.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Board received and considered general information regarding whether
there have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale, and
whether there is potential for realization of any further economies of scale for
the Funds. The Board also considered information provided by Funds Management in
a special presentation on advisory fee breakpoints at the February 2007 board
meeting. The Board acknowledged the inherent limitations of any analysis of an
investment adviser's economies of scale and of any attempt to correlate
breakpoints with such economies, stemming largely from the Board's understanding
that economies of scale are realized, if at all, by an investment adviser across
a variety of products and services,
88
OTHER INFORMATION WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
not just with respect to a single fund. The Board concluded that any actual or
potential economies of scale are, or will be, shared reasonably with Fund
shareholders, most particularly through Advisory Agreement Rate breakpoints and
waivers/caps and/or expense reimbursements applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Board also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trust, and those offered by the Sub-Advisers to other
clients. The Board concluded that the Advisory Agreement Rates, the Sub-Advisory
Agreement Rates and the Net Advisory Rates were within a reasonable range of the
fee rates offered to others by Funds Management and the Sub-Advisers, giving
effect to differences in services covered by such fee rates.
OTHER BENEFITS TO FUNDS MANAGEMENT AND THE SUB-ADVISERS
- --------------------------------------------------------------------------------
The Board received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
and the Sub-Advisers as a result of their relationship with the Funds. Such
benefits could include, among others, benefits directly attributable to the
relationship of Funds Management and the Sub-Advisers with the Funds and
benefits potentially derived from an increase in Funds Management's and the
Sub-Advisers' business as a result of their relationship with the Funds (such as
the ability to market to shareholders other financial products offered by Funds
Management and its affiliates, or the Sub-Advisers and their affiliates).
The Board also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture commission costs, and the controls applicable to
brokerage allocation procedures. The Board also reviewed Funds Management's and
the Sub-Advisers' methods for allocating portfolio investment opportunities
among the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Board also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares are offered and
sold. The Board noted that the Funds are part of one of the few fund families
that have both direct-to-fund and intermediary distribution.
As discussed above, the Board reviews detailed materials received from
Funds Management and the Sub-Advisers annually as part of the re-approval
process under Section 15(c) of the 1940 Act. The Board also reviews and assesses
the quality of the services that the Funds receive throughout the year. In this
regard, the Board has reviewed reports of Funds Management and the Sub-Advisers
at each of its quarterly meetings, which include, among other things, a
portfolio review and fund performance reports. In addition, the Board confers
with portfolio managers at various times throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Board
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the continuation of the Advisory Agreements for
an additional one-year period.
89
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 Receipt
AMBAC --American Municipal Bond Assurance Corporation
AMT --Alternative Minimum Tax
ARM --Adjustable Rate Mortgages
BART --Bay Area Rapid Transit
CDA --Community Development Authority
CDO --Collateralized Debt Obligation
CDSC --Contingent Deferred Sales Charge
CGIC --Capital Guaranty Insurance Company
CGY --Capital Guaranty Corporation
COP --Certificate of Participation
CP --Commercial Paper
CTF --Common Trust Fund
DW&P --Department of Water & Power
DWR --Department of Water Resources
ECFA --Educational & Cultural Facilities Authority
EDFA --Economic Development Finance Authority
ETET --Eagle Tax-Exempt Trust
FFCB --Federal Farm Credit Bank
FGIC --Financial Guaranty Insurance Corporation
FHA --Federal Housing Authority
FHAG --Federal Housing Agency
FHLB --Federal Home Loan Bank
FHLMC --Federal Home Loan Mortgage Corporation
FNMA --Federal National Mortgage Association
GDR --Global Depositary Receipt
GNMA --Government National Mortgage Association
GO --General Obligation
HCFR --Healthcare Facilities Revenue
HEFA --Health & Educational Facilities Authority
HEFAR --Higher Education Facilities Authority Revenue
HFA --Housing Finance Authority
HFFA --Health Facilities Financing Authority
IDA --Industrial Development Authority
IDAG --Industrial Development Agency
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
MTN --Medium Term Note
MUD --Municipal Utility District
PCFA --Pollution Control Finance Authority
PCR --Pollution Control Revenue
PFA --Public Finance Authority
PFFA --Public Facilities Financing Authority
plc --Public Limited Company
PSFG --Public School Fund Guaranty
R&D --Research & Development
RDA --Redevelopment Authority
RDFA --Redevelopment Finance Authority
REITS --Real Estate Investment Trusts
SFHR --Single Family Housing Revenue
SFMR --Single Family Mortgage Revenue
SLMA --Student Loan Marketing Association
TBA --To Be Announced
TRAN --Tax Revenue Anticipation Notes
USD --Unified School District
XLCA --XL Capital Assurance
90
[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
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF WELLS FARGO ADVANTAGE FUNDS. IF THIS
REPORT IS USED FOR PROMOTIONAL PURPOSES, DISTRIBUTION OF THE REPORT MUST BE
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR A PROSPECTUS CONTAINING
MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-222-8222
OR VISIT THE FUNDS' WEB SITE AT WWW.WELLSFARGO.COM/ADVANTAGEFUNDS. PLEASE
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
INVESTMENT CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION ABOUT WELLS
FARGO ADVANTAGE FUNDS CAN BE FOUND IN THE CURRENT PROSPECTUS. READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates of Wells Fargo & Company provide
subadvisory and other services for the Funds. The Funds are distributed by WELLS
FARGO FUNDS DISTRIBUTOR, LLC, Member NASD/SIPC, an affiliate of Wells Fargo &
Company.
-----------------------------------------------------
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2007 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
104313 06-07
SMCFLD/SAR122 04-07
----------------
[LOGO] WELLS ADVANTAGE
FARGO FUNDS
----------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
Semi-Annual Report
APRIL 30, 2007
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 ............................................................. 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 ............................................... 47
Financial Statements
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities ................................... 52
Statements of Operations ............................................... 54
Statements of Changes in Net Assets .................................... 56
Financial Highlights ................................................... 60
Notes to Financial Highlights .......................................... 64
Notes to Financial Statements ............................................. 65
- --------------------------------------------------------------------------------
Other Information ......................................................... 72
- --------------------------------------------------------------------------------
List of Abbreviations ..................................................... 77
- --------------------------------------------------------------------------------
-----------------------------------------------------
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,
In this semi-annual report for the WELLS FARGO ADVANTAGE SMALL AND MID CAP
FUNDS, which covers the six-month period that ended April 30, 2007, you may
notice a few changes if you were a shareholder last year at this time. We have
abbreviated the content in the semi-annual reports to include fund and benchmark
performance, sector distribution percentages, a list of the ten largest holdings
in each Fund, along with the usual information in the financial section.
We will continue to provide you with a general review of the economy and
stock market in our letter to you. In the next annual report, which will cover
the 12-month period ending October 31, 2007, we will also include the portfolio
manager's commentary and a chart showing the growth of a $10,000 investment.
REVIEW OF THE U.S. ECONOMY AND EQUITY MARKETS
- --------------------------------------------------------------------------------
The U.S. economy continued to show signs of slowing during the six-month
period. Real Gross Domestic Product (GDP) grew at a rate of 2.5% for the fourth
quarter of 2006 and the early estimate for the first quarter of 2007 was 1.3%.
During the last 15 years, the GDP grew at an average annual rate of 3.2%.
A significant decline in housing activity continued to tug at the U.S.
economy. 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 that had
previously seen rapid price appreciation. Sales of existing single-family homes
and new single-family homes began to stabilize in March and April of 2007.
Although homebuilders were still reporting a surplus of unsold units at the end
of the period, cancellations had stopped increasing. Areas of the country that
missed the rapid appreciation in housing prices began reporting increased demand
for homes.
Household spending was sustained by healthy labor markets, solid growth in
household incomes, and gains in net worth stemming from the strength in stock
prices. However, on February 27, 2007, the global equity market experienced a
significant correction triggered by an approximately 9% drop in China's stock
market. The Dow Jones Industrial Average (DJIA) lost 3.3% of its value on the
same day. The U.S. equity market continued to struggle in early March. Then on
March 21, 2007, the Fed announced its intention to keep the Federal funds rate
at 5.25%. In addition, the Fed left out its previous statement that further
interest-rate increases might be needed. The equity market rallied on the Fed's
news, and in April the DJIA reported its best monthly performance in over four
years, ending at 13,062 on April 30, significantly higher than the 12,216
reported after the market adjustment on February 27.
Corporations continued to find ways to spend excess cash, with much of
this spending concentrated on acquisitions, mergers, and stock buybacks. A
buyback is a method used by publicly held companies to repurchase outstanding
shares from shareholders. Buybacks allow a company to invest in itself and to
reduce the number of shares outstanding in the market. This can benefit
shareholders by increasing the ownership stake of each share.
These factors and strong global growth helped to drive the U.S. equity
market during the period. U.S. companies that generate revenue from exports
continued to benefit from overseas sales as a result of a weaker U.S. dollar;
this also helped to keep domestic products competitive in the global
marketplace.
PLANNING AHEAD
- --------------------------------------------------------------------------------
The uncertainty of future Fed action and other domestic and global market
forces supports our belief that successful investing includes a balanced
approach of owning a diversified portfolio and keeping a long-term perspective.
While diversification may not prevent losses in a downturn, it may help reduce
them and provide you with one way of managing risk. Our diverse family of more
than 120 mutual funds may also help. Each Fund is managed according to a
disciplined approach to investing that features the strategic thinking of
portfolio managers chosen for their in-depth knowledge and methodology. We
believe that our insistence on seeking skilled investment managers--our
subadvisers--who share our dedication to pursuing consistent long-term results
offers you a way to navigate changing market conditions and move forward with
your financial planning.
Thank you for choosing WELLS FARGO ADVANTAGE FUNDS. We appreciate your
confidence in us. Through each market cycle, we are committed to helping you
meet your financial needs. If you have any questions about your investment,
please contact your investment professional or call us at 1-800-222-8222. You
may also want to 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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGERS FUND INCEPTION
James M. Leach, CFA 12/31/1987
Thomas J. Pence, CFA
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Gross Net
Expense Expense
6-Months* 1-Year 5-Year 10-Year Ratio 2 Ratio 3
- -------------------------------------------------------------------------------------------------------
Administrator Class 12.08 9.11 12.82 10.68 1.25% 1.15%
- -------------------------------------------------------------------------------------------------------
Institutional Class 12.16 9.16 12.76 10.65 0.97% 0.95%
- -------------------------------------------------------------------------------------------------------
Investor Class 11.90 8.83 12.69 10.62 1.58% 1.38%
- -------------------------------------------------------------------------------------------------------
Benchmark
- -------------------------------------------------------------------------------------------------------
Russell 2500(TM) Growth Index 4 10.62 7.32 10.53 8.71
- -------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA QUOTED. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING
RESULTS IN INCREASED TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER
SHORT-TERM CAPITAL GAINS. CERTAIN INVESTMENT STRATEGIES TEND TO INCREASE THE
TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS
EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
2
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
NII Holdings Incorporated 3.55%
- --------------------------------------------------------------------------------
Equinix Incorporated 2.66%
- --------------------------------------------------------------------------------
McDermott International Incorporated 2.59%
- --------------------------------------------------------------------------------
Cognizant Technology Solutions Corporation Class A 2.51%
- --------------------------------------------------------------------------------
The Trizetto Group Incorporated 2.49%
- --------------------------------------------------------------------------------
Hilton Hotels Corporation 2.41%
- --------------------------------------------------------------------------------
BE Aerospace Incorporated 2.31%
- --------------------------------------------------------------------------------
Life Time Fitness Incorporated 2.30%
- --------------------------------------------------------------------------------
American Tower Corporation Class A 2.26%
- --------------------------------------------------------------------------------
GameStop Corporation Class A 2.14%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (20%)
Consumer Staples (3%)
Energy (6%)
Financials (4%)
Health Care (17%)
Industrials (20%)
Information Technology (17%)
Materials (4%)
Telecommunication Services (9%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Administrator Class shares
reflects the performance of the Investor Class shares of the Strong Discovery
Fund, the predecessor fund, and includes expenses that are not applicable to and
are higher than those of the Administrator Class shares. Performance shown for
the Institutional Class shares reflects the performance of the 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 Investor Class shares and Institutional Class shares are
invested in the same portfolio and their returns differ only to the extent that
they do not have the same expenses. Performance shown prior to April 11, 2005
for the Investor Class shares reflects the performance of the Investor Class
shares of the predecessor fund.
2 For the Administrator class and Investor class, the gross expense ratio as
stated in the March 1, 2007, prospectus is based on the Fund's previous fiscal
year expenses as reported in the Financial Highlights. For the Institutional
class, this is the first fiscal year for the Fund, and thus the gross expense
ratio for the Institutional Class as stated in the March 1, 2007, prospectus is
based on estimates for the current fiscal year, whereas the gross expense ratio
reported in the Financial Highlights is based on actual expenses for the Fund.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell 2500(TM) Growth Index measures the performance of those Russell
2500(TM) companies with higher price-to-book ratios and higher forecasted growth
values. You cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGERS* FUND INCEPTION
Sunjay Goel, CFA 09/30/1998
Thomas J. Pence, CFA
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Gross Net
Expense Expense
6-Months** 1-Year 5-Year Life of Fund Ratio 2 Ratio 3
- ------------------------------------------------------------------------------------------------------------
Administrator Class 11.57 6.87 9.89 15.70 1.23% 1.15%
- ------------------------------------------------------------------------------------------------------------
Advisor Class 11.46 6.63 9.61 15.39 1.42% 1.40%
- ------------------------------------------------------------------------------------------------------------
Institutional Class 11.74 7.19 9.97 15.76 0.98% 0.90%
- ------------------------------------------------------------------------------------------------------------
Investor Class 11.37 6.47 9.31 15.35 1.59% 1.57%
- ------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Growth Index 4 11.77 11.13 11.60 9.13
* AS OF JUNE 18, 2007, JAMES M. LEACH, CFA, WILL REPLACE SUNJAY GOEL, CFA, AS
CO-PORTFOLIO MANAGER FOR THE WELLS FARGO ADVANTAGE ENTERPRISE FUND. THOMAS J.
PENCE WILL CONTINUE AS CO-MANAGER OF THE FUND.
** RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA QUOTED. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING
RESULTS IN INCREASED TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER
SHORT-TERM CAPITAL GAINS. CERTAIN INVESTMENT STRATEGIES TEND TO INCREASE THE
TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS
EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
4
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Goldcorp Incorporated 2.97%
- --------------------------------------------------------------------------------
NII Holdings Incorporated 2.67%
- --------------------------------------------------------------------------------
McDermott International Incorporated 2.47%
- --------------------------------------------------------------------------------
Equinix Incorporated 2.42%
- --------------------------------------------------------------------------------
Loews Corporation - Carolina Group 2.41%
- --------------------------------------------------------------------------------
Precision Castparts Corporation 2.22%
- --------------------------------------------------------------------------------
Cognizant Technology Solutions Corporation Class A 2.16%
- --------------------------------------------------------------------------------
Autodesk Incorporated 2.09%
- --------------------------------------------------------------------------------
Allergan Incorporated 2.06%
- --------------------------------------------------------------------------------
BE Aerospace Incorporated 2.01%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (17%)
Consumer Staples (6%)
Energy (8%)
Financials (4%)
Health Care (19%)
Industrials (17%)
Information Technology (19%)
Materials (5%)
Telecommunication Services (5%)
- --------------------------------------------------------------------------------
1 Performance shown prior to April 11, 2005 for the Institutional Class,
Administrator Class, Advisor Class and Investor Class shares reflects the
performance of the Institutional Class, Class K, Advisor Class and Investor
Class shares, respectively, of the Strong Enterprise Fund, the predecessor fund.
Performance shown prior to the inception of the Institutional Class shares and
Administrator Class shares reflects the performance of the Investor Class shares
of the predecessor fund, and includes expenses that are not applicable to and
are higher than those of the Institutional Class shares and Administrator Class
shares. Performance shown prior to the inception of the Advisor Class shares
reflects the performance of the Investor Class shares of the predecessor fund,
adjusted to reflect Advisor Class expenses.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell Midcap(R) Growth Index measures the performance of those Russell
Midcap(R) companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000(R) Growth
Index. You cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash
and cash equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGER FUND INCEPTION
Robert J. Costomiris, CFA 12/31/1998
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Gross Net
Expense Expense
6-Months* 1-Year 5-Year Life of Fund Ratio 2 Ratio 3
- ---------------------------------------------------------------------------------------------------------------
Administrator Class 8.95 15.46 14.29 17.27 1.20% 1.15%
- ---------------------------------------------------------------------------------------------------------------
Institutional Class 9.10 15.71 14.41 17.34 0.92% 0.90%
- ---------------------------------------------------------------------------------------------------------------
Investor Class 8.91 15.28 14.22 17.23 1.54% 1.31%
- ---------------------------------------------------------------------------------------------------------------
Benchmark
- ---------------------------------------------------------------------------------------------------------------
Russell Midcap(R) Value Index 4 12.78 19.66 15.95 13.12
- ---------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA QUOTED. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING
RESULTS IN INCREASED TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER
SHORT-TERM CAPITAL GAINS. CERTAIN INVESTMENT STRATEGIES TEND TO INCREASE THE
TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS
EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
6
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Kroger Company 6.45%
- --------------------------------------------------------------------------------
KeySpan Corporation 4.58%
- --------------------------------------------------------------------------------
Barrick Gold Corporation 4.48%
- --------------------------------------------------------------------------------
Coca-Cola Enterprises Incorporated 4.34%
- --------------------------------------------------------------------------------
Waste Management Incorporated 4.33%
- --------------------------------------------------------------------------------
Pall Corporation 4.01%
- --------------------------------------------------------------------------------
Wm. Wrigley Jr. Company 3.73%
- --------------------------------------------------------------------------------
The Hershey Company 3.63%
- --------------------------------------------------------------------------------
Newmont Mining Corporation 3.44%
- --------------------------------------------------------------------------------
Del Monte Foods Company 3.43%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (6%)
Consumer Staples (29%)
Financials (4%)
Health Care (13%)
Industrials (9%)
Information Technology (10%)
Materials (22%)
Utilities (7%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Institutional Class shares and
Administrator Class shares reflects the performance of the Investor Class shares
of the Strong Mid Cap Disciplined Fund, the predecessor fund, and includes
expenses that are not applicable to and are higher than those of the
Institutional Class shares and Administrator Class shares. Performance shown
prior to April 11, 2005 for the Investor Class shares reflects the performance
of the Investor Class shares of the predecessor fund.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell Midcap(R) Value Index measures the performance of those Russell
Midcap(R) companies with lower price-to-book ratios and lower forecasted growth
values. The stocks are also members of the Russell 1000(R) Value Index. You
cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGERS FUND INCEPTION
Ann M. Miletti 12/31/1985
Richard T. Weiss
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Gross Net
Expense Expense
6-Months* 1-Year 5-Year 10-Year Ratio 2 Ratio 3
- -------------------------------------------------------------------------------------------------------
Administrator Class 10.50 11.15 9.82 11.54 1.13% 1.04%
- -------------------------------------------------------------------------------------------------------
Advisor Class 10.38 10.90 9.51 11.20 1.30% 1.29%
- -------------------------------------------------------------------------------------------------------
Investor Class 10.34 10.82 9.58 11.42 1.47% 1.35%
- -------------------------------------------------------------------------------------------------------
Benchmark
- -------------------------------------------------------------------------------------------------------
Russell Midcap(R) Index 4 12.24 15.24 14.20 12.85
- -------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA QUOTED. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES.THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. CERTAIN INVESTMENT
STRATEGIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET).THIS FUND IS EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE
FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
8
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Weatherford International Limited 2.86%
- --------------------------------------------------------------------------------
Transocean Incorporated 2.17%
- --------------------------------------------------------------------------------
Praxair Incorporated 2.14%
- --------------------------------------------------------------------------------
Apache Corporation 2.03%
- --------------------------------------------------------------------------------
GlobalSantaFe Corporation 1.94%
- --------------------------------------------------------------------------------
Accenture Limited Class A 1.90%
- --------------------------------------------------------------------------------
Red Hat Incorporated 1.79%
- --------------------------------------------------------------------------------
Waters Corporation 1.77%
- --------------------------------------------------------------------------------
CVS Corporation 1.73%
- --------------------------------------------------------------------------------
Cadence Design Systems Incorporated 1.73%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (26%)
Consumer Staples (6%)
Energy (11%)
Financials (12%)
Health Care (10%)
Industrials (11%)
Information Technology (18%)
Materials (4%)
Utilities (2%)
- --------------------------------------------------------------------------------
1 Performance shown prior to April 11, 2005 for the Administrator Class, Advisor
Class and Investor Class shares reflects the performance of the Class K, Advisor
Class, and Investor Class shares, respectively, of the Strong Opportunity Fund,
the predecessor fund. Performance shown prior to the inception of the
Administrator Class shares reflects the performance of the Investor Class shares
of the predecessor fund, and includes expenses that are not applicable to and
are higher than those of the Administrator Class shares. Performance shown prior
to the inception of the Advisor Class shares reflects the performance of the
Investor Class shares of the predecessor fund, adjusted to reflect Advisor Class
expenses.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown.Without these reductions, the Fund's returns
would have been lower.
4 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.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGER FUND INCEPTION
Robert J. Costomiris, CFA 03/28/2002
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Gross Net
Expense Expense
6-Months* 1-Year 5-Year Life of Fund Ratio 2 Ratio 3
- ------------------------------------------------------------------------------------------------------------
Administrator Class 6.46 6.99 18.27 17.87 1.39% 1.20%
- ------------------------------------------------------------------------------------------------------------
Institutional Class 6.50 7.14 18.34 17.94 1.11% 1.00%
- ------------------------------------------------------------------------------------------------------------
Investor Class 6.21 6.51 18.07 17.68 1.73% 1.49%
- ------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------
Russell 2000(R) Value Index 4 6.36 11.22 13.06 13.51
- ------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA QUOTED. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. ACTIVE TRADING
RESULTS IN INCREASED TURNOVER AND TRADING EXPENSES, AND MAY GENERATE HIGHER
SHORT-TERM CAPITAL GAINS. CERTAIN INVESTMENT STRATEGIES TEND TO INCREASE THE
TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE BROADER MARKET). THIS FUND IS
EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE FUND'S PROSPECTUS FOR ADDITIONAL
INFORMATION ON THESE AND OTHER RISKS.
10
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Pall Corporation 4.94%
- --------------------------------------------------------------------------------
Del Monte Foods Company 4.19%
- --------------------------------------------------------------------------------
Intermec Incorporated 3.81%
- --------------------------------------------------------------------------------
BEA Systems Incorporated 3.71%
- --------------------------------------------------------------------------------
PerkinElmer Incorporated 3.64%
- --------------------------------------------------------------------------------
Corinthian Colleges Incorporated 3.61%
- --------------------------------------------------------------------------------
FuelCell Energy Incorporated 3.40%
- --------------------------------------------------------------------------------
Playboy Enterprises Incorporated Class B 3.29%
- --------------------------------------------------------------------------------
Gammon Lake Resources Incorporated 3.25%
- --------------------------------------------------------------------------------
Apex Silver Mines Limited 3.15%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (12%)
Consumer Staples (16%)
Energy (1%)
Financials (5%)
Health Care (17%)
Industrials (17%)
Information Technology (18%)
Materials (13%)
Utilities (1%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Institutional Class shares and
Administrator Class shares reflects the performance of the Investor Class shares
of the Strong Small Company Value Fund, the predecessor fund, and includes
expenses that are not applicable to and are higher than those of the
Institutional Class shares and Administrator Class shares. Performance shown
prior to April 11, 2005 for the Investor Class shares reflects the performance
of the Investor Class shares of the predecessor fund.
2 Reflects the gross expense ratio as stated in the March 1, 2007, prospectus
and is based on the Fund's previous fiscal year expenses as reported in the
Financial Highlights.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell 2000(R) Value Index measures the performance of those Russell
2000(R) companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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.
INVESTMENT ADVISER SUBADVISER
Wells Fargo Funds Management, LLC Wells Capital Management Incorporated
PORTFOLIO MANAGER FUND INCEPTION
I. Charles Rinaldi 03/28/2002
AVERAGE ANNUAL TOTAL RETURN 1 (%) (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Gross Net
Expense Expense
6-Months* 1-Year 5-Year Life of Fund Ratio 2 Ratio 3
- ------------------------------------------------------------------------------------------------------------
Administrator Class 8.49 5.60 14.59 13.88 1.43% 1.15%
- ------------------------------------------------------------------------------------------------------------
Institutional Class 8.61 5.63 14.49 13.78 1.10% 0.95%
- ------------------------------------------------------------------------------------------------------------
Investor Class 8.30 5.21 14.40 13.69 1.78% 1.49%
- ------------------------------------------------------------------------------------------------------------
Benchmark
- ------------------------------------------------------------------------------------------------------------
Russell 2500(TM) Value Index 4 9.72 14.04 14.42 14.53
- ------------------------------------------------------------------------------------------------------------
* RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA QUOTED. 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.
STOCK FUND VALUES FLUCTUATE IN RESPONSE TO THE ACTIVITIES OF INDIVIDUAL
COMPANIES AND GENERAL MARKET AND ECONOMIC CONDITIONS. SMALLER COMPANY STOCKS
TEND TO BE MORE VOLATILE AND LESS LIQUID THAN THOSE OF LARGER COMPANIES. THE USE
OF DERIVATIVES MAY REDUCE RETURNS AND/OR INCREASE VOLATILITY. CERTAIN INVESTMENT
STRATEGIES TEND TO INCREASE THE TOTAL RISK OF AN INVESTMENT (RELATIVE TO THE
BROADER MARKET). THIS FUND IS EXPOSED TO FOREIGN INVESTMENT RISK. CONSULT THE
FUND'S PROSPECTUS FOR ADDITIONAL INFORMATION ON THESE AND OTHER RISKS.
12
PERFORMANCE HIGHLIGHTS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS 5,6 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
Global Industries Limited 4.99%
- --------------------------------------------------------------------------------
Randgold Resources Limited ADR 3.24%
- --------------------------------------------------------------------------------
Encorium Group Incorporated 2.97%
- --------------------------------------------------------------------------------
Goldcorp Incorporated 2.94%
- --------------------------------------------------------------------------------
Intermec Incorporated 2.41%
- --------------------------------------------------------------------------------
3Com Corporation 2.33%
- --------------------------------------------------------------------------------
Newpark Resources Incorporated 1.93%
- --------------------------------------------------------------------------------
Hill International Incorporated 1.73%
- --------------------------------------------------------------------------------
MRV Communications Incorporated 1.72%
- --------------------------------------------------------------------------------
Gentex Corporation 1.69%
SECTOR DISTRIBUTION 5 (AS OF APRIL 30, 2007)
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary (12%)
Energy (20%)
Financials (10%)
Health Care (9%)
Industrials (13%)
Information Technology (20%)
Materials (15%)
Telecommunication Services (1%)
- --------------------------------------------------------------------------------
1 Performance shown prior to the inception of the Administrator Class shares
reflects the performance of the Investor Class shares of the Strong Small/Mid
Cap Value Fund, the predecessor fund, and includes expenses that are not
applicable to and are higher than those of the Administrator Class shares.
Performance shown for the Institutional Class shares reflects the performance of
the 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 Investor Class and Institutional Class
shares are invested in the same portfolio and their returns differ only to the
extent that they do not have the same expenses. Performance shown prior to April
11, 2005 for the Investor Class shares reflects the performance of the Investor
Class shares of the predecessor fund.
2 For the Administrator class and Investor class, the gross expense ratio as
stated in the March 1, 2007, prospectus is based on the Fund's previous fiscal
year expenses as reported in the Financial Highlights. For the Institutional
Class, this is the first fiscal year for the Fund, and thus the gross expense
ratio for the Institutional Class as stated in the March 1, 2007, prospectus is
based on estimates for the current fiscal year, whereas the gross expense ratio
reported in the Financial Highlights is based on actual expenses for the Fund.
3 The investment adviser has contractually committed through February 29, 2008,
to waive fees and/or reimburse expenses to the extent necessary to maintain the
net operating expense ratio shown. Without these reductions, the Fund's returns
would have been lower.
4 The Russell 2500(TM) Value Index measures the performance of those Russell
2500(TM) companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
5 Equity holdings and sector distribution are subject to change. Cash and cash
equivalents are not reflected in the calculations of 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.
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, 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,
2006 to April 30, 2007).
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual
account values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the "Actual" line under the heading entitled "Expenses Paid During
Period" for your applicable class of shares to estimate the expenses you paid on
your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
WELLS FARGO ADVANTAGE DISCOVERY FUND 11/1/2006 04/30/2007 Period(1) Ratio
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Discovery Fund - Administrator Class
Actual $1,000.00 $1,120.80 $6.05 1.15%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.09 $5.76 1.15%
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Discovery Fund - Institutional Class
Actual $1,000.00 $1,121.60 $5.00 0.95%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.08 $4.76 0.95%
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Discovery Fund - Investor Class
Actual $1,000.00 $1,119.00 $7.25 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 $1,115.70 $6.03 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 $1,114.60 $7.34 1.40%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,017.85 $7.00 1.40%
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Enterprise Fund - Institutional Class
Actual $1,000.00 $1,117.40 $4.72 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 $1,113.70 $8.23 1.57%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,017.01 $7.85 1.57%
14
FUND EXPENSES WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Net Annual
Value Value Paid During Expense
WELLS FARGO ADVANTAGE MID CAP DISCIPLINED FUND 11/1/2006 04/30/2007 Period(1) Ratio
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Mid Cap Disciplined Fund - Administrator Class
Actual $1,000.00 $1,089.50 $5.96 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 $1,091.00 $4.61 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 $1,089.10 $6.79 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 $1,105.00 $5.43 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 $1,103.80 $6.73 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 $1,103.40 $7.04 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 $1,064.60 $6.14 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 $1,065.00 $5.12 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 $1,062.10 $8.03 1.57%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,017.01 $7.85 1.57%
WELLS FARGO ADVANTAGE SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small/Mid Cap Value Fund - Administrator Class
Actual $1,000.00 $1,084.90 $5.94 1.15%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.09 $5.76 1.15%
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small/Mid Cap Value Fund - Institutional Class
Actual $1,000.00 $1,086.10 $4.91 0.95%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.08 $4.76 0.95%
- --------------------------------------------------------------------------------------------------------------------------
Wells Fargo Advantage Small/Mid Cap Value Fund - Investor Class
Actual $1,000.00 $1,083.00 $7.95 1.54%
- --------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,017.16 $7.70 1.54%
(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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 93.57%
AEROSPACE, DEFENSE - 2.16%
194,219 BE AEROSPACE INCORPORATED+ $ 7,118,126
--------------
AMUSEMENT & RECREATION SERVICES - 2.15%
137,841 LIFE TIME FITNESS INCORPORATED+ 7,085,027
--------------
APPAREL & ACCESSORY STORES - 4.87%
100,800 AEROPOSTALE INCORPORATED+ 4,147,920
237,068 CASUAL MALE RETAIL GROUP INCORPORATED+ 2,728,653
93,761 DSW INCORPORATED CLASS A+ 3,634,176
68,193 UNDER ARMOUR INCORPORATED+ 3,443,747
80,800 URBAN OUTFITTERS INCORPORATED+ 2,081,408
16,035,904
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 2.73%
125,500 GUESS? INCORPORATED 4,944,700
72,500 PHILLIPS-VAN HEUSEN CORPORATION 4,052,750
8,997,450
--------------
BUSINESS SERVICES - 9.78%
53,100 ALLIANCE DATA SYSTEMS CORPORATION+ 3,380,346
88,200 CERNER CORPORATION+ 4,695,768
87,000 CITRIX SYSTEMS INCORPORATED+ 2,836,200
86,500 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 7,733,100
76,600 F5 NETWORKS INCORPORATED+ 5,881,348
393,200 THE TRIZETTO GROUP INCORPORATED+ 7,659,536
32,186,298
--------------
COMMUNICATIONS - 12.55%
183,200 AMERICAN TOWER CORPORATION CLASS A+ 6,961,600
98,300 EQUINIX INCORPORATED+ 8,205,101
66,200 LEAP WIRELESS INTERNATIONAL INCORPORATED+<< 5,053,046
142,631 NII HOLDINGS INCORPORATED+ 10,946,929
94,450 SAVVIS INCORPORATED+ 4,870,787
178,900 SBA COMMUNICATIONS CORPORATION+ 5,263,238
41,300,701
--------------
ELECTRIC, GAS & SANITARY SERVICES - 1.69%
122,800 COVANTA HOLDING CORPORATION+ 3,013,512
86,700 WILLIAMS COMPANIES INCORPORATED 2,557,650
5,571,162
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 5.97%
75,257 CIENA CORPORATION+ 2,194,494
77,200 MEMC ELECTRONIC MATERIALS INCORPORATED+ 4,236,736
86,700 MICROSEMI CORPORATION+ 2,003,637
162,100 NVIDIA CORPORATION+ 5,331,469
137,700 TESSERA TECHNOLOGIES INCORPORATED+ 5,892,183
19,658,519
--------------
16
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 2.19%
76,300 GEN-PROBE INCORPORATED+ $ 3,899,693
79,900 IHS INCORPORATED+ 3,303,066
7,202,759
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 1.88%
152,300 LADISH COMPANY INCORPORATED+ 6,192,518
--------------
FOOD & KINDRED PRODUCTS - 0.44%
40,000 PILGRIMS PRIDE CORPORATION 1,460,400
--------------
FOOD STORES - 1.40%
69,825 GREAT ATLANTIC & PACIFIC TEA COMPANY INCORPORATED+ 2,247,667
42,300 PANERA BREAD COMPANY+ 2,355,687
4,603,354
--------------
GENERAL MERCHANDISE STORES - 0.83%
128,100 DOLLAR GENERAL CORPORATION 2,734,935
--------------
HEALTH SERVICES - 3.05%
88,600 COVANCE INCORPORATED+ 5,360,300
82,000 PEDIATRIX MEDICAL GROUP INCORPORATED+ 4,678,100
10,038,400
--------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS - 4.63%
57,451 FOSTER WHEELER LIMITED+ 3,954,352
55,100 GRANITE CONSTRUCTION INCORPORATED 3,319,224
148,500 MCDERMOTT INTERNATIONAL INCORPORATED+ 7,968,510
15,242,086
--------------
HOLDING & OTHER INVESTMENT OFFICES - 1.30%
214,000 KITE REALTY GROUP TRUST 4,280,000
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 2.99%
218,250 HILTON HOTELS CORPORATION<< 7,420,500
46,200 ORIENT EXPRESS HOTELS LIMITED CLASS A 2,432,430
9,852,930
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.01%
199,100 GAMESTOP CORPORATION CLASS A+ 6,604,147
--------------
INSURANCE CARRIERS - 2.22%
87,200 ENDURANCE SPECIALTY HOLDINGS LIMITED 3,263,024
83,200 PMI GROUP INCORPORATED 4,032,704
7,295,728
--------------
JUSTICE, PUBLIC ORDER & SAFETY - 1.96%
120,700 CORNELL COMPANIES INCORPORATED+ 2,887,144
62,400 CORRECTIONS CORPORATION OF AMERICA+ 3,544,320
6,431,464
--------------
17
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 4.72%
228,300 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ $ 4,047,759
47,900 C.R. BARD INCORPORATED 3,981,927
252,600 EV3 INCORPORATED+<< 4,508,910
62,600 HAEMONETICS CORPORATION+ 2,994,784
15,533,380
--------------
MEDICAL EQUIPMENT & SUPPLIES - 1.98%
184,900 CYTYC CORPORATION+<< 6,514,026
--------------
MEDICAL MANAGEMENT SERVICES - 1.18%
67,100 COVENTRY HEALTH CARE INCORPORATED+<< 3,880,393
--------------
METAL MINING - 3.25%
230,412 GOLDCORP INCORPORATED 5,608,228
180,200 PAN AMERICAN SILVER CORPORATION+ 5,090,650
10,698,878
--------------
MISCELLANEOUS RETAIL - 2.40%
240,000 COLDWATER CREEK INCORPORATED+ 4,968,000
74,400 DOLLAR TREE STORES INCORPORATED+ 2,925,408
7,893,408
--------------
OIL & GAS EXTRACTION - 4.68%
141,600 CHESAPEAKE ENERGY CORPORATION 4,779,000
93,200 NEWFIELD EXPLORATION COMPANY+ 4,077,500
246,735 TETRA TECHNOLOGIES INCORPORATED+ 6,536,010
15,392,510
--------------
PRIMARY METAL INDUSTRIES - 1.47%
46,600 PRECISION CASTPARTS CORPORATION 4,851,526
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 0.68%
41,900 NUVEEN INVESTMENTS CLASS A 2,233,270
--------------
TOBACCO PRODUCTS - 0.76%
32,600 LOEWS CORPORATION - CAROLINA GROUP 2,494,878
--------------
TRANSPORTATION EQUIPMENT - 3.41%
192,450 SPIRIT AEROSYSTEMS HOLDINGS INCORPORATED+ 6,087,194
84,300 TRIUMPH GROUP INCORPORATED 5,126,283
11,213,477
--------------
TRANSPORTATION SERVICES - 0.69%
114,415 HERTZ GLOBAL HOLDINGS INCORPORATED+ 2,276,859
--------------
WATER TRANSPORTATION - 0.48%
102,450 AEGEAN MARINE PETROLEUM NETWORK INCORPORATED 1,593,098
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.07%
117,900 CENTRAL EUROPEAN DISTRIBUTION CORPORATION+ 3,507,525
--------------
TOTAL COMMON STOCKS (COST $238,529,665) 307,975,136
--------------
18
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COLLATERAL FOR SECURITIES LENDING - 3.96%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.02%
59,398 SCUDDER DAILY ASSETS MONEY MARKET FUND $ 59,398
3,007 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 3,007
62,405
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 3.94%
$ 35,639 AMERICAN GENERAL FINANCE CORPORATION+++/- 5.37% 05/14/2008 35,640
182,452 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 182,521
43,353 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 43,169
98,997 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+++/- 5.34 10/25/2007 99,006
98,997 BANCO SANTANDER TOTTA LOAN+++/- 5.32 05/16/2008 99,007
296,991 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 297,009
158,395 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT (MATURITY
VALUE $158,419) 5.36 05/01/2007 158,395
158,395 BUCKINGHAM II CDO LLC 5.31 05/29/2007 157,749
47,519 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 47,311
79,198 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 79,175
79,198 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 78,771
98,997 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 98,679
39,599 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 39,403
59,398 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 59,009
102,957 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 102,193
166,315 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 164,597
113,205 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 112,957
197,994 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 196,927
131,310 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 130,926
54,278 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 53,946
75,238 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 74,756
14,363 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 14,273
39,599 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 39,195
82,960 CHARTA LLC++ 5.31 06/22/2007 82,332
39,599 CHEYNE FINANCE LLC 5.29 06/19/2007 39,316
257,392 CHEYNE FINANCE LLC+++/- 5.29 02/25/2008 257,343
17,661 CHEYNE FINANCE LLC 5.30 05/14/2007 17,628
98,997 CHEYNE FINANCE LLC SERIES MTN+++/- 5.32 07/16/2007 99,004
39,599 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 39,597
42,311 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 42,324
43,658 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 43,675
1,187,965 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $1,188,142) 5.36 05/01/2007 1,187,965
51,478 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 50,842
19,799 COMERICA BANK+/- 5.32 02/08/2008 19,766
159,979 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 159,746
316,791 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 315,866
98,997 CULLINAN FINANCE CORPORATION+++/- 5.32 02/12/2008 98,972
197,994 CULLINAN FINANCE CORPORATION SERIES MTN2+++/- 5.28 06/25/2007 197,992
148,496 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 148,193
59,398 DEER VALLEY FUNDING LLC 5.31 05/07/2007 59,347
19
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 153,339 DEER VALLEY FUNDING LLC++ 5.31% 05/10/2007 $ 153,138
98,997 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 98,752
19,194 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 19,138
143,724 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 142,719
866,922 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $867,051) 5.36 05/01/2007 866,922
197,994 FIVE FINANCE INCORPORATED SERIES MTN+++/- 5.37 06/13/2007 198,008
25,826 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 25,578
49,479 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 49,487
110,877 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 110,424
98,997 HARRIER FINANCE FUNDING LLC+++/- 5.30 01/11/2008 98,998
7,920 HARRIER FINANCE FUNDING LLC SERIES MTN+++/- 5.42 05/15/2007 7,920
138,596 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 138,606
257,392 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 257,392
98,997 INTESA BANK (IRELAND) PLC SERIES BKNT+++/- 5.32 05/23/2008 99,010
23,759 K2 (USA) LLC+++/- 5.30 07/16/2007 23,761
39,599 K2 (USA) LLC+++/- 5.33 09/28/2007 39,599
12,046 KESTREL FUNDING US LLC 5.27 05/21/2007 12,011
217,794 KESTREL FUNDING US LLC+++/- 5.29 02/25/2008 217,787
180,056 KESTREL FUNDING US LLC++ 5.30 06/28/2007 178,536
197,994 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 196,495
26,701 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 26,418
118,796 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 117,414
71,278 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 70,417
242,895 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 239,925
60,551 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 60,427
55,522 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 55,513
49,499 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 49,498
13,487 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 13,462
257,392 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 257,017
111,720 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 111,378
285,112 LIQUID FUNDING LIMITED 5.30 05/07/2007 284,864
11,880 LIQUID FUNDING LIMITED 5.31 07/30/2007 11,724
253,433 LIQUID FUNDING LIMITED+++/- 5.33 11/13/2007 253,433
83,554 METLIFE GLOBAL FUNDING I+++/- 5.42 10/05/2007 83,587
98,997 MORGAN STANLEY+/- 5.31 07/12/2007 98,997
98,997 MORGAN STANLEY+/- 5.38 08/07/2007 98,997
145,367 MORGAN STANLEY+/- 5.48 07/27/2007 145,405
876,479 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $876,609) 5.36 05/01/2007 876,479
18,314 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 18,316
15,840 NATIONAL CITY BANK+/- 5.41 09/04/2007 15,841
113,510 NATIONWIDE BUILDING SOCIETY+++/- 5.48 07/20/2007 113,552
73,911 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 73,825
197,994 NORTHERN ROCK PLC+++/-SS. 5.34 06/04/2008 198,006
57,195 PARAGON MORTGAGES PLC SERIES 12A+++/- 5.30 05/15/2007 57,195
19,799 PICAROS FUNDING PLC++ 5.27 06/22/2007 19,650
112,857 PREMIUM ASSET TRUST+++/- 5.47 12/21/2007 113,015
98,997 PREMIUM ASSET TRUST SERIES 06-B+++/- 5.36 12/16/2007 98,997
75,238 PYXIS MASTER TRUST SERIES 2007-3+++/- 5.37 08/27/2007 75,238
20
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 16,018 RACERS TRUST SERIES 2004-6-MM+++/- 5.37% 10/22/2007 $ 16,021
49,780 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 49,678
142,556 SEDNA FINANCE INCORPORATED+++/- 5.29 04/10/2008 142,533
91,077 SHIPROCK FINANCE SERIES 2007-4A+++/- 5.39 04/11/2008 91,077
15,840 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 15,584
79,198 SLM CORPORATION+++/- 5.33 05/12/2008 79,090
110,877 STANFIELD VICTORIA FUNDING LLC+++/- 5.35 04/03/2008 110,919
79,198 TANGO FINANCE CORPORATION 5.32 07/31/2007 78,151
22,892 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 22,892
98,997 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+++/- 5.33 06/15/2007 99,003
98,997 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 5.34 05/08/2008 99,004
39,599 VERSAILLES CDS LLC++ 5.31 05/11/2007 39,541
197,994 VETRA FINANCE CORPORATION 5.28 06/12/2007 196,784
27,992 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 27,939
90,931 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 89,976
8,359 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 8,331
12,963,916
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $13,026,321) 13,026,321
--------------
SHARES
SHORT-TERM INVESTMENTS - 5.23%
17,223,178 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 17,223,178
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $17,223,178) 17,223,178
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $268,779,164)* 102.76% $ 338,224,635
OTHER ASSETS AND LIABILITIES, NET (2.76) (9,088,680)
------ --------------
TOTAL NET ASSETS 100.00% $ 329,135,955
====== ==============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
+/- VARIABLE RATE INVESTMENTS.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $17,223,178.
* 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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 93.80%
AEROSPACE, DEFENSE - 1.88%
145,252 BE AEROSPACE INCORPORATED+ $ 5,323,486
--------------
AMUSEMENT & RECREATION SERVICES - 1.52%
83,503 LIFE TIME FITNESS INCORPORATED+ 4,292,054
--------------
APPAREL & ACCESSORY STORES - 4.78%
81,000 AEROPOSTALE INCORPORATED+ 3,333,150
76,991 DSW INCORPORATED CLASS A+ 2,984,171
49,100 LIMITED BRANDS INCORPORATED 1,353,687
37,800 NORDSTROM INCORPORATED 2,075,976
41,789 UNDER ARMOUR INCORPORATED+ 2,110,345
64,700 URBAN OUTFITTERS INCORPORATED+ 1,666,672
13,524,001
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS - 1.01%
51,300 PHILLIPS-VAN HEUSEN CORPORATION 2,867,670
--------------
BIOPHARMACEUTICALS - 2.53%
61,200 CELGENE CORPORATION+ 3,742,992
41,900 GILEAD SCIENCES INCORPORATED+ 3,424,068
7,167,060
--------------
BUSINESS SERVICES - 10.15%
109,600 ADOBE SYSTEMS INCORPORATED+ 4,554,976
47,200 ALLIANCE DATA SYSTEMS CORPORATION+<< 3,004,752
134,100 AUTODESK INCORPORATED+ 5,534,307
64,200 CERNER CORPORATION+ 3,418,008
73,700 CITRIX SYSTEMS INCORPORATED+ 2,402,620
64,000 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 5,721,600
53,000 F5 NETWORKS INCORPORATED+ 4,069,340
28,705,603
--------------
COMMUNICATIONS - 8.59%
130,700 AMERICAN TOWER CORPORATION CLASS A+ 4,966,600
76,800 EQUINIX INCORPORATED+ 6,410,496
92,390 NII HOLDINGS INCORPORATED+ 7,090,933
76,100 SAVVIS INCORPORATED+ 3,924,477
63,900 SBA COMMUNICATIONS CORPORATION+ 1,879,938
24,272,444
--------------
DEPOSITORY INSTITUTIONS - 0.69%
40,600 MARSHALL & ILSLEY CORPORATION 1,949,612
--------------
ELECTRIC, GAS & SANITARY SERVICES - 2.32%
105,900 COVANTA HOLDING CORPORATION+ 2,598,786
134,300 WILLIAMS COMPANIES INCORPORATED 3,961,850
6,560,636
--------------
22
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 6.59%
59,457 CIENA CORPORATION+ $ 1,733,766
62,400 COOPER INDUSTRIES LIMITED CLASS A 3,105,024
68,260 MEMC ELECTRONIC MATERIALS INCORPORATED+ 3,746,109
85,100 NETWORK APPLIANCE INCORPORATED+ 3,166,571
64,100 NVIDIA CORPORATION+ 2,108,249
111,445 TESSERA TECHNOLOGIES INCORPORATED+ 4,768,732
18,628,451
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.80%
46,800 GEN-PROBE INCORPORATED+ 2,391,948
65,250 IHS INCORPORATED+ 2,697,435
5,089,383
--------------
FOOD & KINDRED PRODUCTS - 0.44%
34,000 PILGRIMS PRIDE CORPORATION 1,241,340
--------------
FOOD STORES - 1.58%
79,606 GREAT ATLANTIC & PACIFIC TEA COMPANY INCORPORATED+ 2,562,517
34,000 PANERA BREAD COMPANY+ 1,893,460
4,455,977
--------------
GENERAL MERCHANDISE STORES - 1.35%
48,300 JC PENNEY COMPANY INCORPORATED 3,820,047
--------------
HEALTH SERVICES - 2.95%
71,500 COVANCE INCORPORATED+ 4,325,750
70,500 PEDIATRIX MEDICAL GROUP INCORPORATED+ 4,022,025
8,347,775
--------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS - 4.49%
48,418 FOSTER WHEELER LIMITED+ 3,332,611
46,800 GRANITE CONSTRUCTION INCORPORATED 2,819,232
122,000 MCDERMOTT INTERNATIONAL INCORPORATED+ 6,546,520
12,698,363
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 3.39%
140,300 HILTON HOTELS CORPORATION 4,770,200
106,500 MARRIOTT INTERNATIONAL INCORPORATED CLASS A 4,814,865
9,585,065
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.88%
31,500 DEERE & COMPANY 3,446,100
141,500 GAMESTOP CORPORATION CLASS A+ 4,693,555
8,139,655
--------------
INSURANCE CARRIERS - 2.15%
70,000 ENDURANCE SPECIALTY HOLDINGS LIMITED 2,619,400
71,100 PMI GROUP INCORPORATED 3,446,217
6,065,617
--------------
23
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 4.39%
192,600 AMERICAN MEDICAL SYSTEMS HOLDINGS INCORPORATED+ $ 3,414,798
33,100 C.R. BARD INCORPORATED 2,751,603
50,100 HAEMONETICS CORPORATION+ 2,396,784
74,200 THERMO FISHER SCIENTIFIC INCORPORATED+<< 3,862,852
12,426,037
--------------
MEDICAL EQUIPMENT & SUPPLIES - 1.40%
112,100 CYTYC CORPORATION+ 3,949,279
--------------
MEDICAL MANAGEMENT SERVICES - 2.37%
66,150 COVENTRY HEALTH CARE INCORPORATED+<< 3,825,455
36,700 MEDCO HEALTH SOLUTIONS INCORPORATED+ 2,863,334
6,688,789
--------------
MEDICAL PRODUCTS - 1.93%
45,000 ALLERGAN INCORPORATED 5,454,000
--------------
METAL MINING - 4.24%
323,100 GOLDCORP INCORPORATED 7,864,254
145,500 PAN AMERICAN SILVER CORPORATION+ 4,110,375
11,974,629
--------------
MISCELLANEOUS RETAIL - 2.71%
199,000 COLDWATER CREEK INCORPORATED+ 4,119,300
97,582 CVS CORPORATION 3,536,372
7,655,672
--------------
OIL & GAS EXTRACTION - 5.78%
59,800 CANADIAN NATURAL RESOURCES LIMITED 3,564,678
145,910 CHESAPEAKE ENERGY CORPORATION 4,924,463
69,100 NEWFIELD EXPLORATION COMPANY+ 3,023,125
182,300 TETRA TECHNOLOGIES INCORPORATED+ 4,829,127
16,341,393
--------------
PRIMARY METAL INDUSTRIES - 2.08%
56,550 PRECISION CASTPARTS CORPORATION 5,887,421
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.40%
37,100 NUVEEN INVESTMENTS CLASS A 1,977,430
39,599 T. ROWE PRICE GROUP INCORPORATED<< 1,967,278
3,944,708
--------------
TOBACCO PRODUCTS - 2.26%
83,400 LOEWS CORPORATION - CAROLINA GROUP 6,382,602
--------------
TRANSPORTATION EQUIPMENT - 1.76%
69,900 SPIRIT AEROSYSTEMS HOLDINGS INCORPORATED+ 2,210,937
27,100 TEXTRON INCORPORATED 2,755,257
4,966,194
--------------
TRANSPORTATION SERVICES - 0.66%
94,472 HERTZ GLOBAL HOLDINGS INCORPORATED+ 1,879,993
--------------
24
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
WATER TRANSPORTATION - 0.46%
84,200 AEGEAN MARINE PETROLEUM NETWORK INCORPORATED $ 1,309,310
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 1.27%
120,550 CENTRAL EUROPEAN DISTRIBUTION CORPORATION+ 3,586,363
--------------
TOTAL COMMON STOCKS (COST $221,412,553) 265,180,629
--------------
COLLATERAL FOR SECURITIES LENDING - 3.14%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.02%
40,477 SCUDDER DAILY ASSETS MONEY MARKET FUND 40,477
2,049 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 2,049
42,526
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 3.12%
$ 24,286 AMERICAN GENERAL FINANCE CORPORATION+++/- 5.37% 05/14/2008 24,287
124,330 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 124,378
29,542 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 29,417
67,461 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+++/- 5.34 10/25/2007 67,467
67,461 BANCO SANTANDER TOTTA LOAN+++/- 5.32 05/16/2008 67,468
202,383 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 202,395
107,937 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $107,953) 5.36 05/01/2007 107,937
107,937 BUCKINGHAM II CDO LLC 5.31 05/29/2007 107,497
32,381 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 32,240
53,969 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 53,953
53,969 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 53,678
67,461 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 67,244
26,984 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 26,851
40,477 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 40,211
70,159 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 69,639
113,334 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 112,163
77,143 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 76,974
134,922 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 134,194
89,480 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 89,219
36,987 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 36,761
51,270 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 50,942
9,787 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 9,726
26,984 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 26,709
56,532 CHARTA LLC++ 5.31 06/22/2007 56,104
26,984 CHEYNE FINANCE LLC 5.29 06/19/2007 26,792
175,398 CHEYNE FINANCE LLC+++/- 5.29 02/25/2008 175,365
12,035 CHEYNE FINANCE LLC 5.30 05/14/2007 12,012
67,461 CHEYNE FINANCE LLC SERIES MTN+++/- 5.32 07/16/2007 67,466
26,984 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 26,983
28,833 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 28,841
29,750 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 29,762
809,530 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $809,651) 5.36 05/01/2007 809,530
35,080 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 34,646
13,492 COMERICA BANK+/- 5.32 02/08/2008 13,469
25
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
ENTERPRISE FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 109,017 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31% 05/11/2007 $ 108,858
215,875 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 215,244
67,461 CULLINAN FINANCE CORPORATION+++/- 5.32 02/12/2008 67,444
134,922 CULLINAN FINANCE CORPORATION SERIES MTN2+++/- 5.28 06/25/2007 134,920
101,191 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 100,985
40,477 DEER VALLEY FUNDING LLC 5.31 05/07/2007 40,441
104,491 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 104,355
67,461 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 67,294
13,079 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 13,041
97,940 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 97,255
590,758 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $590,846) 5.36 05/01/2007 590,758
134,922 FIVE FINANCE INCORPORATED SERIES MTN+++/- 5.37 06/13/2007 134,931
17,599 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 17,430
33,717 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 33,723
75,556 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 75,248
67,461 HARRIER FINANCE FUNDING LLC+++/- 5.30 01/11/2008 67,462
5,397 HARRIER FINANCE FUNDING LLC SERIES MTN+++/- 5.42 05/15/2007 5,397
94,445 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 94,452
175,398 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 175,398
67,461 INTESA BANK (IRELAND) PLC SERIES BKNT+++/- 5.32 05/23/2008 67,470
16,191 K2 (USA) LLC+++/- 5.30 07/16/2007 16,192
26,984 K2 (USA) LLC+++/- 5.33 09/28/2007 26,984
8,209 KESTREL FUNDING US LLC 5.27 05/21/2007 8,185
148,414 KESTREL FUNDING US LLC+++/- 5.29 02/25/2008 148,409
122,698 KESTREL FUNDING US LLC++ 5.30 06/28/2007 121,662
134,922 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 133,900
18,196 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 18,002
80,953 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 80,011
48,572 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 47,985
165,519 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 163,495
41,262 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 41,178
37,835 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 37,829
33,730 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 33,730
9,191 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 9,173
175,398 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 175,142
76,131 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 75,898
194,287 LIQUID FUNDING LIMITED 5.30 05/07/2007 194,118
8,095 LIQUID FUNDING LIMITED 5.31 07/30/2007 7,989
172,700 LIQUID FUNDING LIMITED+++/- 5.33 11/13/2007 172,700
56,937 METLIFE GLOBAL FUNDING I+++/- 5.42 10/05/2007 56,960
67,461 MORGAN STANLEY+/- 5.31 07/12/2007 67,461
67,461 MORGAN STANLEY+/- 5.38 08/07/2007 67,461
99,060 MORGAN STANLEY+/- 5.48 07/27/2007 99,085
597,270 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $597,359) 5.36 05/01/2007 597,270
12,480 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 12,481
10,794 NATIONAL CITY BANK+/- 5.41 09/04/2007 10,795
77,351 NATIONWIDE BUILDING SOCIETY+++/- 5.48 07/20/2007 77,379
26
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 50,366 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30% 05/09/2007 $ 50,307
134,922 NORTHERN ROCK PLC+++/-SS. 5.34 06/04/2008 134,930
38,975 PARAGON MORTGAGES PLC SERIES 12A+++/- 5.30 05/15/2007 38,975
13,492 PICAROS FUNDING PLC++ 5.27 06/22/2007 13,390
76,905 PREMIUM ASSET TRUST+++/- 5.47 12/21/2007 77,013
67,461 PREMIUM ASSET TRUST SERIES 06-B+++/- 5.36 12/16/2007 67,461
51,270 PYXIS MASTER TRUST SERIES 2007-3+++/- 5.37 08/27/2007 51,270
10,915 RACERS TRUST SERIES 2004-6-MM+++/- 5.37 10/22/2007 10,918
33,922 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 33,853
97,144 SEDNA FINANCE INCORPORATED+++/- 5.29 04/10/2008 97,128
62,064 SHIPROCK FINANCE SERIES 2007-4A+++/- 5.39 04/11/2008 62,064
10,794 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 10,620
53,969 SLM CORPORATION+++/- 5.33 05/12/2008 53,895
75,556 STANFIELD VICTORIA FUNDING LLC+++/- 5.35 04/03/2008 75,585
53,969 TANGO FINANCE CORPORATION 5.32 07/31/2007 53,255
15,600 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 15,599
67,461 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+++/- 5.33 06/15/2007 67,465
67,461 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 5.34 05/08/2008 67,466
26,984 VERSAILLES CDS LLC++ 5.31 05/11/2007 26,945
134,922 VETRA FINANCE CORPORATION 5.28 06/12/2007 134,097
19,075 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 19,039
61,964 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 61,315
5,696 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 5,677
8,834,167
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $8,876,693) 8,876,693
--------------
SHARES
SHORT-TERM INVESTMENTS - 5.86%
16,577,457 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 16,577,457
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $16,577,457) 16,577,457
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $246,866,703)* 102.80% $ 290,634,779
OTHER ASSETS AND LIABILITIES, NET (2.80) (7,917,923)
------ --------------
TOTAL NET ASSETS 100.00% $ 282,716,856
====== ==============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
+/- VARIABLE RATE INVESTMENTS.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $16,577,457.
* 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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 86.93%
AGRICULTURAL PRODUCTION CROPS - 1.99%
648,000 DELTA & PINE LAND COMPANY $ 26,723,520
--------------
BIOPHARMACEUTICALS - 0.01%
5,800 PDL BIOPHARMA INCORPORATED+ 146,508
--------------
BUSINESS SERVICES - 3.90%
2,120,000 BEA SYSTEMS INCORPORATED+ 24,994,800
245,000 ELECTRONIC ARTS INCORPORATED+ 12,350,450
510,000 ELECTRONIC DATA SYSTEMS CORPORATION 14,912,400
5,000 SYMANTEC CORPORATION+<< 88,000
52,345,650
--------------
CHEMICALS & ALLIED PRODUCTS - 1.22%
405,000 HOSPIRA INCORPORATED+ 16,422,750
--------------
COMMUNICATIONS - 0.33%
28,600 CLEAR CHANNEL COMMUNICATIONS INCORPORATED 1,013,298
3,000 IAC/INTERACTIVECORP+ 114,360
368 LIBERTY MEDIA HOLDING CORPORATION CAPITAL SERIES A+<< 41,573
130,200 LIBERTY MEDIA HOLDING CORPORATION INTERACTIVE SERIES A+ 3,258,906
4,428,137
--------------
DEPOSITORY INSTITUTIONS - 0.19%
30,000 BANK OF NEW YORK COMPANY INCORPORATED 1,214,400
89,359 FIRST FINANCIAL BANCORP 1,331,449
2,545,849
--------------
EATING & DRINKING PLACES - 1.67%
562,000 OSI RESTAURANT PARTNERS INCORPORATED<< 22,373,220
--------------
EDUCATIONAL SERVICES - 2.97%
55,000 APOLLO GROUP INCORPORATED CLASS A+<< 2,601,500
2,695,000 CORINTHIAN COLLEGES INCORPORATED+ 37,271,850
39,873,350
--------------
ELECTRIC, GAS & SANITARY SERVICES - 9.77%
1,340,000 DUQUESNE LIGHT HOLDINGS INCORPORATED 26,719,600
1,290,000 KEYSPAN CORPORATION 53,418,900
15,000 PNM RESOURCES INCORPORATED 488,250
1,350,000 WASTE MANAGEMENT INCORPORATED 50,503,500
131,130,250
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 1.73%
40,000 KLA-TENCOR CORPORATION 2,222,000
593,474 NORTEL NETWORKS CORPORATION ADR+<< 13,578,685
250,000 XILINX INCORPORATED 7,370,000
23,170,685
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.11%
100,000 SERVICEMASTER COMPANY 1,539,000
--------------
28
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
FOOD & KINDRED PRODUCTS - 17.84%
2,311,000 COCA-COLA ENTERPRISES INCORPORATED<< $ 50,703,340
740,000 CONAGRA FOODS INCORPORATED 18,189,200
3,455,000 DEL MONTE FOODS COMPANY 40,078,000
58,200 HERCULES INCORPORATED+ 1,096,488
657,200 SARA LEE CORPORATION 10,784,652
770,000 THE HERSHEY COMPANY<< 42,319,200
741,600 TOOTSIE ROLL INDUSTRIES INCORPORATED 21,498,984
538,000 TYSON FOODS INCORPORATED CLASS A 11,276,480
740,000 WM. WRIGLEY JR. COMPANY 43,571,200
239,517,544
--------------
FOOD STORES - 6.13%
555,000 KONINKLIJKE AHOLD NV 7,069,145
2,550,000 KROGER COMPANY 75,250,500
82,319,645
--------------
HEALTH SERVICES - 0.53%
402,000 NEKTAR THERAPEUTICS+ 4,972,740
40,000 TRIAD HOSPITALS INCORPORATED+ 2,125,600
7,098,340
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 6.25%
1,195,000 APPLIED MATERIALS INCORPORATED<< 22,967,900
635,300 INTERMEC INCORPORATED+ 14,186,249
1,115,000 PALL CORPORATION 46,774,250
83,928,399
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 2.98%
1,260,000 MARSH & MCLENNAN COMPANIES INCORPORATED<< 40,017,600
--------------
INSURANCE CARRIERS - 0.59%
220,000 OHIO CASUALTY CORPORATION 6,960,800
10,000 SAFECO CORPORATION 667,400
5,000 TRAVELERS COMPANIES INCORPORATED 270,500
7,898,700
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.52%
200,000 MILLIPORE CORPORATION+ 14,766,000
235,000 PERKINELMER INCORPORATED 5,687,000
20,453,000
--------------
MEDICAL EQUIPMENT & SUPPLIES - 3.67%
640,000 MEDTRONIC INCORPORATED<< 33,875,200
360,000 ST. JUDE MEDICAL INCORPORATED+<< 15,404,400
49,279,600
--------------
MEDICAL PRODUCTS - 4.54%
216,000 BAXTER INTERNATIONAL INCORPORATED 12,232,080
700,000 BIOMET INCORPORATED 30,240,000
205,000 ZIMMER HOLDINGS INCORPORATED+<< 18,548,400
61,020,480
--------------
29
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
METAL MINING - 18.89%
569,700 ANGLOGOLD ASHANTI LIMITED ADR<< $ 25,391,529
1,860,000 BARRICK GOLD CORPORATION 52,284,600
1,617,900 GAMMON LAKE RESOURCES INCORPORATED+<< 26,129,085
2,115,000 GOLD FIELDS LIMITED ADR<< 38,006,550
1,375,000 GOLDCORP INCORPORATED 33,467,500
138,500 IAMGOLD CORPORATION 1,124,620
2,780,000 KINROSS GOLD CORPORATION+<< 37,057,400
964,000 NEWMONT MINING CORPORATION<< 40,198,800
253,660,084
--------------
OIL & GAS EXTRACTION - 0.01%
6,000 HANOVER COMPRESSOR COMPANY+ 129,780
--------------
PAPER & ALLIED PRODUCTS - 0.01%
5,000 MEADWESTVACO CORPORATION 166,800
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.07%
30,500 CBS CORPORATION CLASS B<< 968,985
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.01%
3,270 SUPERVALU INCORPORATED 150,094
--------------
TOTAL COMMON STOCKS (COST $1,039,147,686) 1,167,307,970
--------------
COLLATERAL FOR SECURITIES LENDING - 10.60%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.05%
648,900 SCUDDER DAILY ASSETS MONEY MARKET FUND 648,900
32,847 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 32,847
681,747
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
COLLATERAL INVESTED IN OTHER ASSETS - 10.55%
$ 389,340 AMERICAN GENERAL FINANCE CORPORATION+++/- 5.37% 05/14/2008 389,356
1,993,206 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 1,993,963
473,611 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 471,607
1,081,501 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+++/- 5.34 10/25/2007 1,081,598
1,081,501 BANCO SANTANDER TOTTA LOAN+++/- 5.32 05/16/2008 1,081,609
3,244,502 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 3,244,697
1,730,401 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $1,730,659) 5.36 05/01/2007 1,730,401
1,730,401 BUCKINGHAM II CDO LLC 5.31 05/29/2007 1,723,341
519,120 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 516,852
865,201 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 864,950
865,201 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 860,537
1,081,501 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 1,078,029
432,600 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 430,459
648,900 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 644,650
1,124,761 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 1,116,415
1,816,921 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 1,798,152
1,236,718 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 1,234,009
2,163,001 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 2,151,343
1,434,502 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 1,430,314
30
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 592,965 CEDAR SPRINGS CAPITAL COMPANY++ 5.29% 06/12/2007 $ 589,342
821,940 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 816,680
156,904 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 155,922
432,600 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 428,192
906,298 CHARTA LLC++ 5.31 06/22/2007 899,437
432,600 CHEYNE FINANCE LLC 5.29 06/19/2007 429,516
2,811,902 CHEYNE FINANCE LLC+++/- 5.29 02/25/2008 2,811,367
192,940 CHEYNE FINANCE LLC 5.30 05/14/2007 192,573
1,081,501 CHEYNE FINANCE LLC SERIES MTN+++/- 5.32 07/16/2007 1,081,576
432,600 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 432,583
462,233 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 462,372
476,942 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 477,128
12,978,008 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $12,979,940) 5.36 05/01/2007 12,978,008
562,380 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 555,424
216,300 COMERICA BANK+/- 5.32 02/08/2008 215,935
1,747,705 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 1,745,153
3,460,802 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 3,450,697
1,081,501 CULLINAN FINANCE CORPORATION+++/- 5.32 02/12/2008 1,081,230
2,163,001 CULLINAN FINANCE CORPORATION SERIES MTN2+++/- 5.28 06/25/2007 2,162,980
1,622,251 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 1,618,942
648,900 DEER VALLEY FUNDING LLC 5.31 05/07/2007 648,336
1,675,158 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 1,672,964
1,081,501 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 1,078,819
209,681 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 209,069
1,570,123 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 1,559,147
9,470,749 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $9,472,159) 5.36 05/01/2007 9,470,749
2,163,001 FIVE FINANCE INCORPORATED SERIES MTN+++/- 5.37 06/13/2007 2,163,153
282,142 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 279,431
540,534 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 540,626
1,211,281 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 1,206,339
1,081,501 HARRIER FINANCE FUNDING LLC+++/- 5.30 01/11/2008 1,081,511
86,520 HARRIER FINANCE FUNDING LLC SERIES MTN+++/- 5.42 05/15/2007 86,522
1,514,101 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 1,514,207
2,811,902 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 2,811,902
1,081,501 INTESA BANK (IRELAND) PLC SERIES BKNT+++/- 5.32 05/23/2008 1,081,641
259,560 K2 (USA) LLC+++/- 5.30 07/16/2007 259,581
432,600 K2 (USA) LLC+++/- 5.33 09/28/2007 432,600
131,597 KESTREL FUNDING US LLC 5.27 05/21/2007 131,213
2,379,301 KESTREL FUNDING US LLC+++/- 5.29 02/25/2008 2,379,230
1,967,033 KESTREL FUNDING US LLC++ 5.30 06/28/2007 1,950,432
2,163,001 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 2,146,627
291,702 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 288,602
1,297,801 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 1,282,694
778,680 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 769,274
2,653,527 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 2,621,074
661,489 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 660,140
606,549 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 606,458
540,750 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 540,745
31
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 147,344 LIBERTY HARBOUR CDO II LIMITED 5.30% 05/14/2007 $ 147,064
2,811,902 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 2,807,796
1,220,495 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 1,216,760
3,114,722 LIQUID FUNDING LIMITED 5.30 05/07/2007 3,112,012
129,780 LIQUID FUNDING LIMITED 5.31 07/30/2007 128,080
2,768,642 LIQUID FUNDING LIMITED+++/- 5.33 11/13/2007 2,768,642
912,787 METLIFE GLOBAL FUNDING I+++/- 5.42 10/05/2007 913,152
1,081,501 MORGAN STANLEY+/- 5.31 07/12/2007 1,081,501
1,081,501 MORGAN STANLEY+/- 5.38 08/07/2007 1,081,501
1,588,076 MORGAN STANLEY+/- 5.48 07/27/2007 1,588,488
9,575,155 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $9,576,580) 5.36 05/01/2007 9,575,155
200,078 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 200,094
173,040 NATIONAL CITY BANK+/- 5.41 09/04/2007 173,061
1,240,049 NATIONWIDE BUILDING SOCIETY+++/- 5.48 07/20/2007 1,240,507
807,448 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 806,504
2,163,001 NORTHERN ROCK PLC+++/-SS. 5.34 06/04/2008 2,163,131
624,834 PARAGON MORTGAGES PLC SERIES 12A+++/- 5.30 05/15/2007 624,834
216,300 PICAROS FUNDING PLC++ 5.27 06/22/2007 214,663
1,232,911 PREMIUM ASSET TRUST+++/- 5.47 12/21/2007 1,234,637
1,081,501 PREMIUM ASSET TRUST SERIES 06-B+++/- 5.36 12/16/2007 1,081,501
821,940 PYXIS MASTER TRUST SERIES 2007-3+++/- 5.37 08/27/2007 821,940
174,987 RACERS TRUST SERIES 2004-6-MM+++/- 5.37 10/22/2007 175,025
543,822 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 542,712
1,557,361 SEDNA FINANCE INCORPORATED+++/- 5.29 04/10/2008 1,557,112
994,981 SHIPROCK FINANCE SERIES 2007-4A+++/- 5.39 04/11/2008 994,981
173,040 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 170,249
865,201 SLM CORPORATION+++/- 5.33 05/12/2008 864,024
1,211,281 STANFIELD VICTORIA FUNDING LLC+++/- 5.35 04/03/2008 1,211,741
865,201 TANGO FINANCE CORPORATION 5.32 07/31/2007 853,763
250,086 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 250,081
1,081,501 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+++/- 5.33 06/15/2007 1,081,566
1,081,501 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 5.34 05/08/2008 1,081,576
432,600 VERSAILLES CDS LLC++ 5.31 05/11/2007 431,969
2,163,001 VETRA FINANCE CORPORATION 5.28 06/12/2007 2,149,785
305,805 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 305,224
993,380 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 982,969
91,322 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 91,010
141,625,235
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $142,306,982) 142,306,982
--------------
32
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 12.89%
173,103,752 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ $ 173,103,752
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $173,103,752) 173,103,752
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,354,558,420)* 110.42% $1,482,718,704
OTHER ASSETS AND LIABILITIES, NET (10.42) (139,880,464)
------ --------------
TOTAL NET ASSETS 100.00% $1,342,838,240
====== ==============
+ NON-INCOME EARNING SECURITIES.
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
+/- VARIABLE RATE INVESTMENTS.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $173,103,752.
* 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, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 78.19%
AMUSEMENT & RECREATION SERVICES - 1.16%
610,000 INTERNATIONAL GAME TECHNOLOGY $ 23,265,400
--------------
APPAREL & ACCESSORY STORES - 2.57%
460,000 NORDSTROM INCORPORATED<< 25,263,200
1,010,000 URBAN OUTFITTERS INCORPORATED+ 26,017,600
51,280,800
--------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS - 1.28%
1,255,000 AUTONATION INCORPORATED<<+ 25,652,200
--------------
BUSINESS SERVICES - 12.26%
1,410,000 CADENCE DESIGN SYSTEMS INCORPORATED<<+ 31,302,000
2,750,000 CNET NETWORKS INCORPORATED+ 23,182,500
520,770 ELECTRONIC ARTS INCORPORATED<<+ 26,252,002
932,000 IMS HEALTH INCORPORATED 27,335,570
2,265,000 INTERPUBLIC GROUP OF COMPANIES INCORPORATED+ 28,720,200
1,210,000 JUNIPER NETWORKS INCORPORATED<<+ 27,055,600
225,000 OMNICOM GROUP INCORPORATED 23,559,750
1,535,000 RED HAT INCORPORATED+ 32,449,900
915,000 VERISIGN INCORPORATED<<+ 25,025,250
244,882,772
--------------
CHEMICALS & ALLIED PRODUCTS - 6.32%
644,800 AMYLIN PHARMACEUTICALS INCORPORATED+ 26,649,584
370,000 CLOROX COMPANY 24,819,600
171,900 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 5,318,586
1,215,000 PDL BIOPHARMA INCORPORATED+ 30,690,900
600,000 PRAXAIR INCORPORATED 38,730,000
126,208,670
--------------
COMMUNICATIONS - 4.39%
800,000 CABLEVISION SYSTEMS CORPORATION NEW YORK GROUP CLASS A+ 26,224,000
1,065,000 COMCAST CORPORATION CLASS A+ 28,116,000
150,000 LIBERTY MEDIA HOLDING CORPORATION CAPITAL SERIES A<<+ 16,945,500
657,000 LIBERTY MEDIA HOLDING CORPORATION INTERACTIVE SERIES A+ 16,444,710
87,730,210
--------------
DEPOSITORY INSTITUTIONS - 1.77%
580,000 BANK OF NEW YORK COMPANY INCORPORATED 23,478,400
295,000 FIFTH THIRD BANCORP 11,974,050
35,452,450
--------------
ELECTRIC, GAS & SANITARY SERVICES - 1.55%
1,260,000 NISOURCE INCORPORATED 30,983,400
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 4.58%
9,112,600 ARM HOLDINGS PLC 24,243,874
2,440,000 CELESTICA INCORPORATED+ 16,567,600
495,200 MICROSEMI CORPORATION+ 11,444,072
34
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT (CONTINUED)
995,000 MOLEX INCORPORATED CLASS A $ 26,656,050
3,620,000 SANMINA-SCI CORPORATION+ 12,489,000
91,400,596
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 1.72%
880,000 ACCENTURE LIMITED CLASS A<<# 34,408,000
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 2.56%
325,000 FORTUNE BRANDS INCORPORATED 26,032,500
490,000 ILLINOIS TOOL WORKS INCORPORATED 25,141,900
51,174,400
--------------
FOOD & KINDRED PRODUCTS - 1.28%
780,000 PEPSI BOTTLING GROUP INCORPORATED 25,591,800
--------------
GENERAL MERCHANDISE STORES - 1.40%
470,000 TARGET CORPORATION<< 27,903,900
--------------
HEALTH SERVICES - 0.81%
1,520,000 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A<<+ 16,248,800
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES - 1.26%
620,000 BED BATH & BEYOND INCORPORATED<<+ 25,258,800
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 2.52%
500,000 DOVER CORPORATION 24,060,000
625,000 PALL CORPORATION 26,218,750
50,278,750
--------------
INSURANCE CARRIERS - 6.29%
470,000 ACE LIMITED# 27,946,200
260,000 AMBAC FINANCIAL GROUP INCORPORATED<< 23,868,000
425,000 MGIC INVESTMENT CORPORATION 26,184,250
415,000 RENAISSANCERE HOLDINGS LIMITED 22,472,250
324,000 XL CAPITAL LIMITED CLASS A 25,265,520
125,736,220
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 3.28%
240,000 MEDTRONIC INCORPORATED<< 12,703,200
347,000 ROCKWELL AUTOMATION INCORPORATED<< 20,660,380
540,000 WATERS CORPORATION+# 32,092,200
65,455,780
--------------
METAL MINING - 0.86%
255,000 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 17,125,800
--------------
MISCELLANEOUS RETAIL - 3.06%
865,000 CVS CORPORATION 31,347,600
1,205,000 STAPLES INCORPORATED 29,884,000
61,231,600
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 1.48%
1,090,000 J.B. HUNT TRANSPORT SERVICES INCORPORATED 29,495,400
--------------
35
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
OIL & GAS EXTRACTION - 8.15%
506,000 APACHE CORPORATION $ 36,685,000
550,000 GLOBALSANTAFE CORPORATION 35,161,500
455,000 TRANSOCEAN INCORPORATED+ 39,221,000
985,000 WEATHERFORD INTERNATIONAL LIMITED<<+ 51,702,650
162,770,150
--------------
PERSONAL SERVICES - 1.15%
601,000 REGIS CORPORATION 22,976,230
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 1.12%
515,000 E.W. SCRIPPS COMPANY CLASS A 22,299,500
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.09%
220,000 LEGG MASON INCORPORATED<< 21,821,800
--------------
SEMICONDUCTOR EQUIPMENT MANUFACTURING & RELATED - 1.31%
960,000 ASML HOLDING NV NEW YORK REGISTERED SHARES<<+ 26,160,000
--------------
TEXTILE MILL PRODUCTS - 1.22%
270,000 MOHAWK INDUSTRIES INCORPORATED+# 24,343,200
--------------
TRANSPORTATION BY AIR - 1.75%
412,500 AIR CANADA 6,206,640
645,800 AIR CANADA CLASS A+ 9,716,965
1,324,200 SOUTHWEST AIRLINES COMPANY 19,002,270
34,925,875
--------------
TOTAL COMMON STOCKS (COST $1,172,223,986) 1,562,062,503
--------------
INVESTMENT COMPANIES - 2.94%
STOCK FUNDS - 2.94%
435,000 ISHARES S&P SMALLCAP 600 INDEX FUND<< 30,197,700
180,000 MIDCAP SPDR TRUST SERIES 1<< 28,566,000
58,763,700
--------------
TOTAL INVESTMENT COMPANIES (COST $39,827,603) 58,763,700
--------------
CONTRACTS STRIKE PRICE EXPIRATION DATE
OPTIONS - 0.00%
900 ACCENTURE LIMITED CLASS A PUT $35.00 05/19/2007 4,500
200 ACE LIMITED PUT 60.00 05/19/2007 19,800
650 WATERS CORPORATION PUT 55.00 05/19/2007 6,500
TOTAL OPTIONS (PREMIUMS RECEIVED $715,048) 30,800
--------------
SHARES
RIGHTS - 0.00%
566,000 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
--------------
36
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
UNITS SECURITY NAME MATURITY DATE VALUE
EXCHANGEABLE NOTES - 9.27%
369,400 BAKER HUGHES INCORPORATED+ (J) 07/20/2007 $ 28,525,068
495,000 BEST BUY CORPORATION+ (J) 08/02/2007 23,972,850
255,000 MEDTRONIC INCORPORATED MTN+ ++ (J) 10/05/2007 13,281,420
545,000 MEMC ELECTRONIC MATERIALS INCORPORATED MTN+ (J) 10/02/2007 31,075,900
567,000 SANDISK CORPORATION MTN+ ++ (J) 09/13/2007 24,256,260
350,000 SUNCOR ENERGY INCORPRATED MTN+ ++ (J) 09/04/2007 27,774,600
284,000 UNITEDHEALTHCARE GROUP INCORPORATED+ (J) 05/18/2007 15,063,360
268,000 WEYERHAEUSER COMPANY MTN+ ++ (J) 09/20/2007 21,236,320
TOTAL EXCHANGEABLE NOTES (COST $178,205,720) 185,185,778
--------------
SHARES
COLLATERAL FOR SECURITIES LENDING - 9.31%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.05%
847,619 SCUDDER DAILY ASSETS MONEY MARKET FUND 847,619
42,907 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 42,907
890,526
--------------
PRINCIPAL INTEREST RATE
COLLATERAL INVESTED IN OTHER ASSETS - 9.26%
$ 508,571 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37% 05/14/2008 508,592
2,603,602 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 2,604,592
618,649 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 616,032
1,412,698 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 1,412,825
1,412,698 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 1,412,839
4,238,094 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 4,238,348
2,260,317 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT (MATURITY
VALUE $2,260,653) 5.36 05/01/2007 2,260,317
2,260,317 BUCKINGHAM II CDO LLC 5.31 05/29/2007 2,251,095
678,095 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 675,132
1,130,158 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 1,129,831
1,130,158 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 1,124,067
1,412,698 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 1,408,163
565,079 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 562,282
847,619 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 842,067
1,469,206 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 1,458,304
2,373,332 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 2,348,816
1,615,448 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 1,611,910
2,825,396 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 2,810,167
1,873,803 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 1,868,331
774,554 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 769,821
1,073,650 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 1,066,779
204,954 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 203,671
565,079 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 559,321
1,183,841 CHARTA LLC++ 5.31 06/22/2007 1,174,879
565,079 CHEYNE FINANCE LLC 5.29 06/19/2007 561,050
3,673,015 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 3,672,317
252,025 CHEYNE FINANCE LLC 5.30 05/14/2007 251,546
1,412,698 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 1,412,797
37
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 565,079 CIT GROUP INCORPORATED+/- 5.42% 12/19/2007 $ 565,057
603,787 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 603,968
623,000 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 623,243
16,952,375 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $16,954,899) 5.36 05/01/2007 16,952,375
734,603 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 725,516
282,540 COMERICA BANK+/- 5.32 02/08/2008 282,062
2,282,920 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 2,279,587
4,520,633 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 4,507,433
1,412,698 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 1,412,345
2,825,396 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 2,825,368
2,119,047 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 2,114,724
847,619 DEER VALLEY FUNDING LLC 5.31 05/07/2007 846,881
2,188,156 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 2,185,290
1,412,698 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 1,409,194
273,894 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 273,094
2,050,955 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 2,036,619
12,371,058 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $12,372,900) 5.36 05/01/2007 12,371,058
2,825,396 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 2,825,594
368,545 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 365,003
706,066 GENWORTH FINANCIAL INCORPORATED+/- 5.50 06/15/2007 706,186
1,582,222 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 1,575,766
1,412,698 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 1,412,712
113,016 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 113,018
1,977,777 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 1,977,916
3,673,015 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 3,673,015
1,412,698 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 1,412,882
339,048 K2 (USA) LLC+/-++ 5.30 07/16/2007 339,075
565,079 K2 (USA) LLC+/-++ 5.33 09/28/2007 565,079
171,897 KESTREL FUNDING US LLC 5.27 05/21/2007 171,395
3,107,935 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 3,107,842
2,569,415 KESTREL FUNDING US LLC++ 5.30 06/28/2007 2,547,729
2,825,396 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 2,804,008
381,033 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 376,983
1,695,237 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 1,675,505
1,017,143 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 1,004,855
3,466,139 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 3,423,748
864,063 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 862,300
792,298 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 792,179
706,349 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 706,342
192,466 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 192,100
3,673,015 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 3,667,652
1,594,258 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 1,589,379
4,068,570 LIQUID FUNDING LIMITED 5.30 05/07/2007 4,065,030
169,524 LIQUID FUNDING LIMITED 5.31 07/30/2007 167,303
3,616,507 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 3,616,507
1,192,317 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 1,192,794
1,412,698 MORGAN STANLEY+/- 5.31 07/12/2007 1,412,698
1,412,698 MORGAN STANLEY+/- 5.38 08/07/2007 1,412,698
38
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 2,074,406 MORGAN STANLEY+/- 5.48% 07/27/2007 $ 2,074,945
12,507,437 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $12,509,299) 5.36 05/01/2007 12,507,437
261,349 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 261,370
226,032 NATIONAL CITY BANK+/- 5.41 09/04/2007 226,059
1,619,799 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 1,620,399
1,054,720 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 1,053,486
2,825,396 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 2,825,565
816,182 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 816,182
282,540 PICAROS FUNDING PLC++ 5.27 06/22/2007 280,401
1,610,476 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 1,612,730
1,412,698 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 1,412,698
1,073,650 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 1,073,650
228,575 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 228,625
710,361 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 708,912
2,034,285 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 2,033,960
1,299,682 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 1,299,682
226,032 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 222,386
1,130,158 SLM CORPORATION+/-++ 5.33 05/12/2008 1,128,621
1,582,222 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35 04/03/2008 1,582,823
1,130,158 TANGO FINANCE CORPORATION 5.32 07/31/2007 1,115,218
326,672 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 326,666
1,412,698 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 1,412,783
1,412,698 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 1,412,797
565,079 VERSAILLES CDS LLC++ 5.31 05/11/2007 564,254
2,825,396 VETRA FINANCE CORPORATION 5.28 06/12/2007 2,808,133
399,454 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 398,695
1,297,591 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 1,283,993
119,288 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 118,882
184,996,350
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $185,886,876) 185,886,876
--------------
SHARES
SHORT-TERM INVESTMENTS - 9.58%
MUTUAL FUNDS - 9.39%
187,665,936 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 187,665,936
--------------
PRINCIPAL
US TREASURY BILLS - 0.19%
$ 1,800,000 US TREASURY BILL^ 4.95 05/31/2007 1,792,650
500,000 US TREASURY BILL^ 4.96 05/31/2007 497,958
550,000 US TREASURY BILL^ 4.98 05/31/2007 547,754
350,000 US TREASURY BILL^ 5.00 05/03/2007 349,902
500,000 US TREASURY BILL^ 5.02 05/10/2007 499,376
3,687,640
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $191,353,447) 191,353,576
--------------
39
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
- --------------------------------------------------------------------------------
VALUE
TOTAL INVESTMENTS IN SECURITIES
(COST $1,768,212,680)* 109.29% $2,183,283,233
OTHER ASSETS AND LIABILITIES, NET (9.29) (185,575,809)
------ --------------
TOTAL NET ASSETS 100.00% $1,997,707,424
====== ==============
<< ALL OR A PORTION OF THIS SECURITY IS ON LOAN. (SEE NOTE 2)
+ NON-INCOME EARNING SECURITIES.
# ALL OR A PORTION OF THIS SECURITY IS SEGREGATED AS COLLATERAL FOR
DERIVATIVE INVESTMENTS. (SEE NOTE 2)
+/- VARIABLE RATE INVESTMENTS.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
(A) SECURITY FAIR VALUED IN ACCORDANCE WITH THE PROCEDURES APPROVED BY THE
BOARD OF TRUSTEES.
(J) THE HOLDER OF AN EXCHANGEABLE EQUITY-LINKED NOTE WILL RECEIVE, AT THE
NOTE'S MATURITY, SHARES OF THE REFERENCED EQUITY BASED ON THE FINAL INDEX
VALUE OF THE EQUITY (OR THE CASH EQUIVALENT). THE INDEX VALUE AND MATURITY
DATE ARE BOTH DEFINED IN THE TERMS OF THE NOTE.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
^ ZERO COUPON BOND. INTEREST RATE PRESENTED IS YIELD TO MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $187,665,936.
* COST FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE SAME AS FOR
FINANCIAL REPORTING PURPOSES.
CONTRACTS SECURITY NAME STRIKE PRICE EXPIRATION DATE VALUE
WRITTEN OPTIONS - (0.21%)
(900) ACCENTURE LIMITED CLASS A CALL $35.00 05/19/2007 $ (387,000)
(200) ACE LIMITED CALL 6.00 05/19/2007 (15,000)
(2,700) MOHAWK INDUSTRIES INCORPORATED CALL 80.00 08/18/2007 (3,375,000)
(650) WATERS CORPORATION CALL 55.00 05/19/2007 (321,100)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(2,378,025)) (4,098,100)
--------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 81.64%
AGRICULTURAL PRODUCTION CROPS - 2.28%
299,900 DELTA & PINE LAND COMPANY $ 12,367,876
--------------
AMUSEMENT & RECREATION SERVICES - 2.07%
905,000 LAKES ENTERTAINMENT INCORPORATED+ 11,203,900
--------------
BUSINESS SERVICES - 5.98%
701,200 ASSET ACCEPTANCE CAPITAL CORPORATION+ 12,916,104
1,405,000 BEA SYSTEMS INCORPORATED+ 16,564,950
425,300 MIDWAY GAMES INCORPORATED+ 2,934,570
32,415,624
--------------
CHEMICALS & ALLIED PRODUCTS - 2.28%
772 MGI PHARMA INCORPORATED+ 16,999
3,624,600 XOMA LIMITED+<< 12,323,640
12,340,639
--------------
COMMUNICATIONS - 0.49%
230,000 MASTEC INCORPORATED+ 2,638,100
--------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.51%
190,000 COMFORT SYSTEMS USA INCORPORATED 2,373,100
9,800 LAYNE CHRISTENSEN COMPANY+ 371,126
2,744,226
--------------
DEPOSITORY INSTITUTIONS - 0.13%
3,800 CITIZENS FIRST BANCORP INCORPORATED 80,028
1,300 FIRST COMMONWEALTH FINANCIAL CORPORATION 14,469
22,340 FIRST FINANCIAL BANCORP 332,866
3,800 NBT BANCORP INCORPORATED 83,410
600 PEOPLES BANCORP INCORPORATED 15,030
4,400 UMB FINANCIAL CORPORATION 172,128
697,931
--------------
EATING & DRINKING PLACES - 0.71%
239,200 BUCA INCORPORATED+<< 1,191,216
33,600 OSI RESTAURANT PARTNERS INCORPORATED 1,337,616
107,000 RUBIO'S RESTAURANTS INCORPORATED+<< 1,332,150
3,860,982
--------------
EDUCATIONAL SERVICES - 2.97%
1,165,000 CORINTHIAN COLLEGES INCORPORATED+ 16,111,950
--------------
ELECTRIC, GAS & SANITARY SERVICES - 5.89%
1,128,300 CASELLA WASTE SYSTEMS INCORPORATED CLASS A+ 10,493,190
139,800 CLEAN HARBORS INCORPORATED+ 6,503,496
527,000 DUQUESNE LIGHT HOLDINGS INCORPORATED 10,508,380
135,900 PNM RESOURCES INCORPORATED 4,423,545
31,928,611
--------------
41
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 5.79%
130,000 ACTEL CORPORATION+ $ 1,903,200
7,800 ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED+ 63,258
385,000 C-COR INCORPORATED+ 4,743,200
135,000 EXAR CORPORATION+ 1,819,800
2,155,000 FUELCELL ENERGY INCORPORATED+ 15,171,200
568,000 MERCURY COMPUTER SYSTEMS INCORPORATED+ 7,707,760
31,408,418
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.68%
282,300 SYMYX TECHNOLOGIES INCORPORATED+ 3,249,273
60,000 TRIMERIS INCORPORATED+ 460,200
3,709,473
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.36%
31,000 VALMONT INDUSTRIES INCORPORATED 1,949,280
--------------
FOOD & KINDRED PRODUCTS - 9.98%
125,000 CAL-MAINE FOODS INCORPORATED 1,690,000
390,000 COCA-COLA ENTERPRISES INCORPORATED 8,556,600
1,610,200 DEL MONTE FOODS COMPANY 18,678,320
385,000 HERCULES INCORPORATED+ 7,253,400
469,306 TOOTSIE ROLL INDUSTRIES INCORPORATED 13,605,181
143,000 TYSON FOODS INCORPORATED CLASS A 2,997,280
712,500 VERMONT PURE HOLDINGS LIMITED+ 1,353,750
54,134,531
--------------
FOOD STORES - 1.59%
479,100 WILD OATS MARKETS INCORPORATED+ 8,638,173
--------------
HEALTH SERVICES - 3.65%
2,177,700 HOOPER HOLMES INCORPORATED+ 9,581,880
720,000 NEKTAR THERAPEUTICS+ 8,906,400
24,600 TRIAD HOSPITALS INCORPORATED+ 1,307,244
19,795,524
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.68%
230,600 MTR GAMING GROUP INCORPORATED+<< 3,687,294
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 12.03%
710,000 ENTEGRIS INCORPORATED+ 8,321,200
1,199,000 INFOCUS CORPORATION+ 3,081,430
760,000 INTERMEC INCORPORATED+ 16,970,800
525,000 PALL CORPORATION 22,023,750
13,600 PLANAR SYSTEMS INCORPORATED+ 102,408
129,900 ROBBINS & MYERS INCORPORATED 4,992,057
12,000 TENNANT COMPANY 384,240
676,000 ULTRATECH INCORPORATED+ 9,362,600
65,238,485
--------------
INSURANCE AGENTS, BROKERS & SERVICE - 0.60%
505,100 CRAWFORD & COMPANY CLASS A 3,227,589
--------------
42
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS - 2.02%
615,000 CONSECO INCORPORATED+ $ 10,879,350
2,000 OHIO CASUALTY CORPORATION 63,280
10,942,630
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 6.99%
155,000 MILLIPORE CORPORATION+ 11,443,650
670,000 PERKINELMER INCORPORATED 16,214,000
180,100 VITAL SIGNS INCORPORATED 10,276,506
37,934,156
--------------
METAL MINING - 7.86%
936,300 APEX SILVER MINES LIMITED+ 14,035,137
896,900 GAMMON LAKE RESOURCES INCORPORATED+<< 14,484,935
400,000 KINROSS GOLD CORPORATION+ 5,332,000
779,900 MINEFINDERS CORPORATION LIMITED+<< 8,758,277
42,610,349
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.98%
334,000 LEAPFROG ENTERPRISES INCORPORATED+ 3,660,640
115,000 LYDALL INCORPORATED+ 1,672,100
5,332,740
--------------
MOTION PICTURES - 0.09%
95,600 WPT ENTERPRISES INCORPORATED+ 503,812
--------------
OIL & GAS EXTRACTION - 0.50%
875,000 SYNTROLEUM CORPORATION+ 2,738,750
--------------
PAPER & ALLIED PRODUCTS - 0.72%
307,000 BUCKEYE TECHNOLOGIES INCORPORATED+ 3,889,690
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.71%
1,500,000 PLAYBOY ENTERPRISES INCORPORATED CLASS B+** 14,685,000
--------------
RETAIL, TRADE & SERVICES - 0.04%
17,000 STRIDE RITE CORPORATION 239,700
--------------
TRANSPORTATION EQUIPMENT - 0.99%
170,000 SPIRIT AEROSYSTEMS HOLDINGS INCORPORATED+ 5,377,100
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.07%
102,700 BIOSCRIP INCORPORATED+ 365,612
--------------
TOTAL COMMON STOCKS (COST $409,070,982) 442,718,145
--------------
PREFERRED STOCKS - 0.58%
127,300 TELEPHONE & DATA SYSTEMS 3,179,954
TOTAL PREFERRED STOCKS (COST $3,209,952) 3,179,954
--------------
COLLATERAL FOR SECURITIES LENDING - 2.21%
COLLATERAL INVESTED IN MONEY MARKET FUNDS - 0.01%
54,733 SCUDDER DAILY ASSETS MONEY MARKET FUND 54,733
2,771 SHORT TERM INVESTMENT COMPANY MONEY MARKET FUND 2,771
57,504
--------------
43
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS - 2.20%
$ 32,840 AMERICAN GENERAL FINANCE CORPORATION+/-++ 5.37% 05/14/2008 $ 32,841
168,123 AMERICAN GENERAL FINANCE CORPORATION+/- 5.47 08/16/2007 168,186
39,948 ATLANTIC ASSET SECURITIZATION CORPORATION 5.31 05/30/2007 39,779
91,222 ATLAS CAPITAL FUNDING CORPORATION SERIES MTN1+/-++ 5.34 10/25/2007 91,230
91,222 BANCO SANTANDER TOTTA LOAN+/-++ 5.32 05/16/2008 91,231
273,667 BANK OF AMERICA NA SERIES BKNT+/- 5.36 06/19/2007 273,683
145,956 BEAR STEARNS & COMPANY INTERNATIONAL REPURCHASE AGREEMENT
(MATURITY VALUE $145,977) 5.36 05/01/2007 145,956
145,956 BUCKINGHAM II CDO LLC 5.31 05/29/2007 145,360
43,787 CAIRN HIGH GRADE FUNDING I LLC++ 5.27 05/31/2007 43,595
72,978 CAIRN HIGH GRADE FUNDING I LLC++ 5.28 05/03/2007 72,957
72,978 CAIRN HIGH GRADE FUNDING I LLC 5.28 06/07/2007 72,584
91,222 CAIRN HIGH GRADE FUNDING I LLC++ 5.29 05/23/2007 90,929
36,489 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/04/2007 36,308
54,733 CAIRN HIGH GRADE FUNDING I LLC 5.30 06/15/2007 54,375
94,871 CAIRN HIGH GRADE FUNDING I LLC++ 5.30 06/21/2007 94,167
153,253 CAIRN HIGH GRADE FUNDING I LLC++ 5.33 07/11/2007 151,670
104,314 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 05/16/2007 104,086
182,444 CEDAR SPRINGS CAPITAL COMPANY++ 5.28 06/07/2007 181,461
120,997 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 05/21/2007 120,644
50,015 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/12/2007 49,710
69,329 CEDAR SPRINGS CAPITAL COMPANY++ 5.29 06/14/2007 68,885
13,235 CEDAR SPRINGS CAPITAL COMPANY++ 5.30 06/13/2007 13,152
36,489 CEDAR SPRINGS CAPITAL COMPANY 5.30 07/10/2007 36,117
76,444 CHARTA LLC++ 5.31 06/22/2007 75,866
36,489 CHEYNE FINANCE LLC 5.29 06/19/2007 36,229
237,178 CHEYNE FINANCE LLC+/-++ 5.29 02/25/2008 237,133
16,274 CHEYNE FINANCE LLC 5.30 05/14/2007 16,243
91,222 CHEYNE FINANCE LLC SERIES MTN+/-++ 5.32 07/16/2007 91,229
36,489 CIT GROUP INCORPORATED+/- 5.42 12/19/2007 36,487
38,988 CIT GROUP INCORPORATED+/- 5.57 09/20/2007 39,000
40,229 CIT GROUP INCORPORATED+/- 5.59 11/23/2007 40,245
1,094,667 CITIGROUP REPURCHASE AGREEMENT (MATURITY VALUE $1,094,830) 5.36 05/01/2007 1,094,667
47,436 COBBLER FUNDING LIMITED++ 5.33 07/25/2007 46,849
18,244 COMERICA BANK+/- 5.32 02/08/2008 18,214
147,415 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/11/2007 147,200
291,911 CORPORATE ASSET SECURITIZATION (AUSTRALIA)++ 5.31 05/21/2007 291,059
91,222 CULLINAN FINANCE CORPORATION+/-++ 5.32 02/12/2008 91,199
182,444 CULLINAN FINANCE CORPORATION SERIES MTN2+/-++ 5.28 06/25/2007 182,443
136,833 DEER VALLEY FUNDING LLC++ 5.27 05/15/2007 136,554
54,733 DEER VALLEY FUNDING LLC 5.31 05/07/2007 54,686
141,296 DEER VALLEY FUNDING LLC++ 5.31 05/10/2007 141,111
91,222 DEER VALLEY FUNDING LLC++ 5.31 05/18/2007 90,996
17,686 DEER VALLEY FUNDING LLC++ 5.31 05/21/2007 17,635
132,436 DEER VALLEY FUNDING LLC++ 5.32 06/18/2007 131,511
798,837 FIRST BOSTON REPURCHASE AGREEMENT (MATURITY VALUE $798,956) 5.36 05/01/2007 798,837
182,444 FIVE FINANCE INCORPORATED SERIES MTN+/-++ 5.37 06/13/2007 182,457
23,798 FOUNTAIN SQUARE COMMERCIAL FUNDING CORPORATION++ 5.27 07/06/2007 23,569
44
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (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)
$ 45,593 GENWORTH FINANCIAL INCORPORATED+/- 5.50% 06/15/2007 $ 45,601
102,169 GEORGE STREET FINANCE LLC++ 5.31 05/29/2007 101,752
91,222 HARRIER FINANCE FUNDING LLC+/-++ 5.30 01/11/2008 91,223
7,298 HARRIER FINANCE FUNDING LLC SERIES MTN+/-++ 5.42 05/15/2007 7,298
127,711 IBM CORPORATION SERIES MTN+/- 5.35 06/28/2007 127,720
237,178 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/- 5.39 09/17/2007 237,178
91,222 INTESA BANK (IRELAND) PLC SERIES BKNT+/-++ 5.32 05/23/2008 91,234
21,893 K2 (USA) LLC+/-++ 5.30 07/16/2007 21,895
36,489 K2 (USA) LLC+/-++ 5.33 09/28/2007 36,489
11,100 KESTREL FUNDING US LLC 5.27 05/21/2007 11,068
200,689 KESTREL FUNDING US LLC+/-++ 5.29 02/25/2008 200,683
165,915 KESTREL FUNDING US LLC++ 5.30 06/28/2007 164,515
182,444 KLIO III FUNDING CORPORATION++ 5.31 06/22/2007 181,063
24,604 KLIO III FUNDING CORPORATION++ 5.32 07/13/2007 24,343
109,467 KLIO III FUNDING CORPORATION++ 5.32 07/20/2007 108,192
65,680 KLIO III FUNDING CORPORATION++ 5.32 07/23/2007 64,887
223,819 KLIO III FUNDING CORPORATION++ 5.33 07/24/2007 221,082
55,795 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.31 05/15/2007 55,681
51,161 LA FAYETTE ASSET SECURITIZATION CORPORATION++ 5.32 05/02/2007 51,153
45,611 LEHMAN BROTHERS HOLDINGS INCORPORATED+/- 5.33 06/26/2007 45,611
12,428 LIBERTY HARBOUR CDO II LIMITED 5.30 05/14/2007 12,405
237,178 LIBERTY HARBOUR CDO II LIMITED 5.31 05/11/2007 236,831
102,946 LIBERTY HARBOUR CDO II LIMITED 5.31 05/22/2007 102,631
262,720 LIQUID FUNDING LIMITED 5.30 05/07/2007 262,491
10,947 LIQUID FUNDING LIMITED 5.31 07/30/2007 10,803
233,529 LIQUID FUNDING LIMITED+/-++ 5.33 11/13/2007 233,529
76,992 METLIFE GLOBAL FUNDING I+/-++ 5.42 10/05/2007 77,022
91,222 MORGAN STANLEY+/- 5.31 07/12/2007 91,222
91,222 MORGAN STANLEY+/- 5.38 08/07/2007 91,222
133,951 MORGAN STANLEY+/- 5.48 07/27/2007 133,986
807,643 MORGAN STANLEY REPURCHASE AGREEMENT (MATURITY VALUE $807,764) 5.36 05/01/2007 807,643
16,876 MORGAN STANLEY SERIES EXL+/- 5.38 05/15/2008 16,877
14,596 NATIONAL CITY BANK+/- 5.41 09/04/2007 14,597
104,595 NATIONWIDE BUILDING SOCIETY+/-++ 5.48 07/20/2007 104,634
68,107 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 5.30 05/09/2007 68,027
182,444 NORTHERN ROCK PLC+/-++SS. 5.34 06/04/2008 182,455
52,703 PARAGON MORTGAGES PLC SERIES 12A+/-++ 5.30 05/15/2007 52,703
18,244 PICAROS FUNDING PLC++ 5.27 06/22/2007 18,106
103,993 PREMIUM ASSET TRUST+/-++ 5.47 12/21/2007 104,139
91,222 PREMIUM ASSET TRUST SERIES 06-B+/-++ 5.36 12/16/2007 91,222
69,329 PYXIS MASTER TRUST SERIES 2007-3+/-++ 5.37 08/27/2007 69,329
14,760 RACERS TRUST SERIES 2004-6-MM+/-++ 5.37 10/22/2007 14,763
45,870 REGENCY MARKETS #1 LLC++ 5.26 05/15/2007 45,777
131,360 SEDNA FINANCE INCORPORATED+/-++ 5.29 04/10/2008 131,339
83,924 SHIPROCK FINANCE SERIES 2007-4A+/-++ 5.39 04/11/2008 83,924
14,596 SKANDINAVISKA ENSKILDA BANKEN AB 5.23 08/20/2007 14,360
72,978 SLM CORPORATION+/-++ 5.33 05/12/2008 72,879
45
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 102,169 STANFIELD VICTORIA FUNDING LLC+/-++ 5.35% 04/03/2008 $ 102,208
72,978 TANGO FINANCE CORPORATION 5.32 07/31/2007 72,013
21,094 TRAVELERS INSURANCE COMPANY+/- 5.39 02/08/2008 21,094
91,222 UNICREDITO ITALIANO BANK (IRELAND) SERIES EXL+/-++ 5.33 06/15/2007 91,228
91,222 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+/-++ 5.34 05/08/2008 91,229
36,489 VERSAILLES CDS LLC++ 5.31 05/11/2007 36,436
182,444 VETRA FINANCE CORPORATION 5.28 06/12/2007 181,330
25,794 WHISTLEJACKET CAPITAL LIMITED 5.30 05/14/2007 25,745
83,789 WHISTLEJACKET CAPITAL LIMITED 5.31 07/12/2007 82,911
7,703 WORLD OMNI VEHICLE LEASING++ 5.30 05/24/2007 7,675
11,945,778
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $12,003,282) 12,003,282
--------------
SHARES
SHORT-TERM INVESTMENTS - 18.22%
98,788,414 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~+++ 98,788,414
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $98,788,414) 98,788,414
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $523,072,630)* 102.65% $ 556,689,795
OTHER ASSETS AND LIABILITIES, NET (2.65) (14,391,117)
------ --------------
TOTAL NET ASSETS 100.00% $ 542,298,678
====== ==============
+ 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 FUND HOLDS 5% OR MORE TO THE ISSUER'S 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.
SS. THESE SECURITIES ARE SUBJECT TO A DEMAND FEATURE WHICH REDUCES THE
EFFECTIVE MATURITY.
~ THIS WELLS FARGO ADVANTAGE FUND INVESTS CASH BALANCES THAT IT RETAINS FOR
LIQUIDITY PURPOSES IN A WELLS FARGO ADVANTAGE MONEY MARKET FUND. THE FUND
DOES NOT PAY AN INVESTMENT ADVISORY FEE FOR SUCH INVESTMENTS.
+++ SECURITY OF AN AFFILIATE OF THE FUND WITH A COST OF $98,788,414.
* 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.
46
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
COMMON STOCKS - 99.16%
AMUSEMENT & RECREATION SERVICES - 0.98%
250,270 CENTURY CASINOS INCORPORATED+ $ 2,097,263
--------------
BIOPHARMACEUTICALS - 0.43%
108,430 CV THERAPEUTICS INCORPORATED+ 914,065
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS - 1.03%
148,370 PALM HARBOR HOMES INCORPORATED+ 2,203,295
--------------
BUSINESS SERVICES - 11.23%
1,242,775 3COM CORPORATION+ 5,008,383
95,665 ABM INDUSTRIES INCORPORATED 2,692,013
23,850 CITRIX SYSTEMS INCORPORATED+ 777,510
43,460 CLARUS CORPORATION+ 384,621
334,730 EMBARCADERO TECHNOLOGIES INCORPORATED+ 2,369,888
504,770 HILL INTERNATIONAL INCORPORATED+ 3,725,203
65,130 IMS HEALTH INCORPORATED 1,910,263
74,920 KFORCE INCORPORATED+ 1,028,652
222,300 MOBIUS MANAGEMENT SYSTEMS INCORPORATED+ 2,194,101
300,840 TIER TECHNOLOGIES INCORPORATED CLASS B+ 2,662,434
72,990 VIGNETTE CORPORATION+ 1,351,775
24,104,843
--------------
CHEMICALS & ALLIED PRODUCTS - 2.58%
60,735 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 1,879,141
285,857 ORASURE TECHNOLOGIES INCORPORATED+ 2,129,635
483,860 WELLMAN INCORPORATED 1,538,675
5,547,451
--------------
COMMUNICATIONS - 2.39%
120,980 CHINA GRENTECH CORPORATION LIMITED ADR+ 1,195,282
209,525 CINCINNATI BELL INCORPORATED+ 1,062,292
290,200 COASTAL CONTACTS INCORPORATED 240,548
149,125 LIGHTBRIDGE INCORPORATED+ 2,630,565
5,128,687
--------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 1.10%
26,530 CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES 918,734
114,870 COMFORT SYSTEMS USA INCORPORATED 1,434,726
2,353,460
--------------
CONSUMER SERVICES - 0.43%
56,635 EMDEON CORPORATION+ 914,089
--------------
DEPOSITORY INSTITUTIONS - 1.85%
2,780 COMMUNITY BANCORP+ 85,374
141,649 FIRST SECURITY GROUP INCORPORATED 1,562,388
38,975 MIDWEST BANC HOLDINGS INCORPORATED 657,508
105,410 PACIFIC PREMIER BANCORP INCORPORATED+ 1,133,158
25,950 WESTERN UNION COMPANY 546,248
3,984,676
--------------
47
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
ELECTRIC, GAS & SANITARY SERVICES - 0.32%
46,460 EL PASO CORPORATION $ 696,900
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT - 9.13%
82,790 ALCATEL SA ADR 1,096,968
323,585 EVANS & SUTHERLAND COMPUTER CORPORATION+ 1,025,764
79,625 GRAFTECH INTERNATIONAL LIMITED+ 794,658
91,862 INTEGRATED ELECTRICAL SERVICES INCORPORATED+ 2,191,827
233,160 MICRON TECHNOLOGY INCORPORATED+ 2,674,345
1,064,418 MRV COMMUNICATIONS INCORPORATED+ 3,693,530
107,141 NORTEL NETWORKS CORPORATION ADR+ 2,451,386
56,535 OSI SYSTEMS INCORPORATED+ 1,493,089
409,080 POWER-ONE INCORPORATED+ 1,742,681
247,048 RICHARDSON ELECTRONICS LIMITED 2,166,611
64,960 SILICON STORAGE TECHNOLOGY INCORPORATED+ 267,635
19,598,494
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES - 0.63%
118,295 SYMYX TECHNOLOGIES INCORPORATED+ 1,361,575
--------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT - 0.18%
9,155 CRANE COMPANY 389,179
--------------
FURNITURE & FIXTURES - 0.86%
114,900 FURNITURE BRANDS INTERNATIONAL INCORPORATED 1,847,592
--------------
HEALTH SERVICES - 1.46%
43,845 CROSS COUNTRY HEALTHCARE INCORPORATED+ 863,308
35,060 MANOR CARE INCORPORATED 2,275,043
3,138,351
--------------
HOLDING & OTHER INVESTMENT OFFICES - 4.67%
277,716 AFFORDABLE RESIDENTIAL COMMUNITIES INCORPORATED+ 3,257,609
164,713 ANNALY MORTGAGE MANAGEMENT INCORPORATED 2,620,584
37,740 DISCOVERY HOLDING COMPANY CLASS A+ 820,845
49,075 SUN COMMUNITIES INCORPORATED 1,460,472
124,245 UMH PROPERTIES INCORPORATED 1,869,887
10,029,397
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES - 0.38%
92,540 EMPIRE RESORTS INCORPORATED+ 815,277
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT - 3.53%
149,971 CRAY INCORPORATED+ 1,867,142
232,225 INTERMEC INCORPORATED+ 5,185,584
18,945 KOMAG INCORPORATED+ 521,177
7,573,903
--------------
INSURANCE CARRIERS - 3.29%
224,305 KMG AMERICA CORPORATION+ 1,074,421
38,675 MERCURY GENERAL CORPORATION 2,094,251
188,415 NORTH POINTE HOLDINGS CORPORATION+ 2,274,169
48
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
INSURANCE CARRIERS (CONTINUED)
15,580 NYMAGIC INCORPORATED $ 638,001
459,365 QUANTA CAPITAL HOLDINGS LIMITED+ 978,447
7,059,289
--------------
JUSTICE, PUBLIC ORDER & SAFETY - 1.65%
69,086 GEO GROUP INCORPORATED+ 3,537,203
--------------
LEATHER & LEATHER PRODUCTS - 0.80%
188,327 BAKERS FOOTWEAR GROUP INCORPORATED+ 1,723,192
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE - 1.67%
348,330 CHAMPION ENTERPRISES INCORPORATED+ 3,580,832
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS - 1.74%
465,988 ALLIED HEALTHCARE PRODUCTS INCORPORATED** 3,145,419
159,610 CREDENCE SYSTEMS CORPORATION+ 592,153
3,737,572
--------------
METAL MINING - 10.64%
22,105 ANGLOGOLD ASHANTI LIMITED ADR 985,220
221,525 APEX SILVER MINES LIMITED+ 3,320,660
259,615 GOLDCORP INCORPORATED 6,319,029
54,045 NEWMONT MINING CORPORATION 2,253,677
212,310 NOVAGOLD RESOURCES INCORPORATED+ 3,014,802
290,505 RANDGOLD RESOURCES LIMITED ADR+ 6,957,595
22,850,983
--------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS - 0.73%
459,985 BIRCH MOUNTAIN RESOURCES LIMITED+ 1,573,149
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 1.02%
91,905 ACCO BRANDS CORPORATION+ 2,187,339
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.29%
58,225 COVENANT TRANSPORT INCORPORATED CLASS A+ 620,096
--------------
OIL & GAS EXTRACTION - 19.32%
46,650 CANADIAN NATURAL RESOURCES LIMITED 2,780,807
516,240 GLOBAL INDUSTRIES LIMITED+ 10,717,142
85,565 HELIX ENERGY SOLUTIONS GROUP INCORPORATED+ 3,273,717
108,270 HELMERICH & PAYNE INCORPORATED 3,496,038
179,590 KEY ENERGY SERVICES INCORPORATED+ 3,349,354
192,985 MCMORAN EXPLORATION COMPANY+ 2,487,577
19,030 NEWFIELD EXPLORATION COMPANY+ 832,563
505,170 NEWPARK RESOURCES INCORPORATED+ 4,152,497
51,955 PETROQUEST ENERGY INCORPORATED+ 593,326
46,820 PRIDE INTERNATIONAL INCORPORATED+ 1,536,164
52,742 RANGE RESOURCES CORPORATION 1,927,720
306,625 TRILOGY ENERGY TRUST 3,149,405
134,470 WILLBROS GROUP INCORPORATED+ 3,181,560
41,477,870
--------------
49
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
PAPER & ALLIED PRODUCTS - 0.35%
56,505 WAUSAU PAPER CORPORATION $ 760,557
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 2.68%
41,680 E.W. SCRIPPS COMPANY CLASS A 1,804,744
126,535 JOURNAL COMMUNICATIONS INCORPORATED CLASS A 1,706,957
41,177 MCCLATCHY COMPANY CLASS A 1,190,015
13,380 R.H. DONNELLEY CORPORATION+ 1,044,844
5,746,560
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS - 1.64%
188,690 CONSTAR INTERNATIONAL INCORPORATED+ 1,666,133
379,750 INTERTAPE POLYMER GROUP INCORPORATED+ 1,860,775
3,526,908
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES - 1.01%
132,820 MARKETAXESS HOLDINGS INCORPORATED+ 2,175,592
--------------
SOCIAL SERVICES - 0.54%
58,410 ABB LIMITED ADR 1,165,864
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS - 1.69%
203,970 GENTEX CORPORATION 3,630,666
--------------
THEATERS & ENTERTAINMENT - 0.66%
65,070 REGAL ENTERTAINMENT GROUP CLASS A 1,415,273
--------------
TRANSPORTATION BY AIR - 2.04%
132,710 AIRTRAN HOLDINGS INCORPORATED+ 1,461,137
57,915 ALASKA AIR GROUP INCORPORATED+ 1,714,284
121,610 JETBLUE AIRWAYS CORPORATION+ 1,205,155
4,380,576
--------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.42%
138,790 SOURCE INTERLINK COMPANIES INCORPORATED+ 897,971
--------------
WHOLESALE TRADE-DURABLE GOODS - 3.80%
130,310 DELIAS INCORPORATED+ 1,121,969
1,698,502 ENCORIUM GROUP INCORPORATED+** 6,369,383
48,600 US HOME SYSTEMS INCORPORATED+ 673,596
8,164,948
--------------
TOTAL COMMON STOCKS (COST $189,928,667) 212,910,937
--------------
EXPIRATION DATE
WARRANTS - 0.84%
623,945 HILL INTERNATIONAL INCORPORATED 06/23/2008 1,547,384
453,675 OAKMONT ACQUISITION CORPORATION 07/11/2009 263,132
TOTAL WARRANTS (COST $1,113,339) 1,810,516
--------------
PREFERRED STOCKS - 0.02%
71,435 STATS CHIPPAC LIMITED ADR 47,861
TOTAL PREFERRED STOCKS (COST $0) 47,861
--------------
50
PORTFOLIO OF INVESTMENTS--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SHARES SECURITY NAME VALUE
SHORT-TERM INVESTMENTS - 0.34%
738,102 WELLS FARGO ADVANTAGE MONEY MARKET TRUST +++ $ 738,102
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $738,102) 738,102
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $191,780,108)* 100.36% $ 215,507,416
OTHER ASSETS AND LIABILITIES, NET (0.36) (779,445)
------ --------------
TOTAL NET ASSETS 100.00% $ 214,727,971
====== ==============
+ NON-INCOME EARNING SECURITIES.
** 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 TO THE ISSUER'S 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 $738,102.
* 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
STATEMENTS OF ASSETS AND LIABILITIES--APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY ENTERPRISE
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................................................... $ 307,975,136 $ 265,180,629
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................................................ 13,026,321 8,876,693
INVESTMENTS IN AFFILIATES ................................................................ 17,223,178 16,577,457
---------------------------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) .......................................... 338,224,635 290,634,779
---------------------------------
CASH ..................................................................................... 0 0
RECEIVABLE FOR FUND SHARES ISSUED ........................................................ 435,106 384,662
RECEIVABLE FOR INVESTMENTS SOLD .......................................................... 6,598,553 4,280,747
RECEIVABLES FOR DIVIDENDS AND INTEREST ................................................... 65,342 95,940
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS .......................................... 0 0
---------------------------------
TOTAL ASSETS ................................................................................ 345,323,636 295,396,128
---------------------------------
LIABILITIES
OPTION WRITTEN, AT VALUE ................................................................. 0 0
PAYABLE FOR FUND SHARES REDEEMED ......................................................... 37,622 83,022
PAYABLE FOR INVESTMENTS PURCHASED ........................................................ 2,762,694 3,437,121
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .................................... 275,009 234,598
PAYABLE FOR SECURITIES LOANED (NOTE 2) ................................................... 13,026,321 8,876,693
ACCRUED EXPENSES AND OTHER LIABILITIES ................................................... 86,035 47,838
---------------------------------
TOTAL LIABILITIES ........................................................................... 16,187,681 12,679,272
---------------------------------
TOTAL NET ASSETS ............................................................................ $ 329,135,955 $ 282,716,856
=================================
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .......................................................................... $ 250,000,536 $ 458,446,661
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................................... (1,413,461) (940,766)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 11,103,409 (218,557,115)
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ................ 69,445,471 43,768,076
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT SALES .. 0 0
---------------------------------
TOTAL NET ASSETS ............................................................................ $ 329,135,955 $ 282,716,856
---------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - ADMINISTRATOR CLASS ......................................................... $ 82,796,175 $ 2,855,540
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................................................. 3,469,566 85,801
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ....................... $ 23.86 $ 33.28
NET ASSETS - ADVISOR CLASS ............................................................... N/A $ 1,645,894
SHARES OUTSTANDING - ADVISOR CLASS ....................................................... N/A 50,380
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADVISOR CLASS ............................. N/A $ 32.67
NET ASSETS - INSTITUTIONAL CLASS ......................................................... $ 65,605 $ 86,609,915
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................................................. 2,745 2,592,444
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ....................... $ 23.90 $ 33.41
NET ASSETS - INVESTOR CLASS .............................................................. $ 246,274,175 $ 191,605,507
SHARES OUTSTANDING - INVESTOR CLASS ...................................................... 10,385,146 5,910,274
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................ $ 23.71 $ 32.42
---------------------------------
INVESTMENTS AT COST ......................................................................... $ 268,779,164 $ 246,866,703
---------------------------------
SECURITIES ON LOAN, AT MARKET VALUE ......................................................... $ 12,217,875 $ 8,512,271
=================================
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.
52
STATEMENTS OF ASSETS AND LIABILITIES--APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP
DISCIPLINED OPPORTUNITY
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................................................... $ 1,167,307,970 $ 1,809,730,421
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................................................ 142,306,982 185,886,876
INVESTMENTS IN AFFILIATES ................................................................ 173,103,752 187,665,936
---------------------------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) .......................................... 1,482,718,704 2,183,283,233
---------------------------------
CASH ..................................................................................... 1,705 112
RECEIVABLE FOR FUND SHARES ISSUED ........................................................ 2,585,772 427,121
RECEIVABLE FOR INVESTMENTS SOLD .......................................................... 0 7,794,253
RECEIVABLES FOR DIVIDENDS AND INTEREST ................................................... 2,108,970 1,599,497
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS .......................................... 0 3,851,814
---------------------------------
TOTAL ASSETS ................................................................................ 1,487,415,151 2,196,956,030
---------------------------------
LIABILITIES
OPTION WRITTEN, AT VALUE ................................................................. 0 4,098,100
PAYABLE FOR FUND SHARES REDEEMED ......................................................... 884,187 521,322
PAYABLE FOR INVESTMENTS PURCHASED ........................................................ 0 7,335,071
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .................................... 1,125,501 1,049,815
PAYABLE FOR SECURITIES LOANED (NOTE 2) ................................................... 142,306,982 185,886,876
ACCRUED EXPENSES AND OTHER LIABILITIES ................................................... 260,241 357,422
---------------------------------
TOTAL LIABILITIES ........................................................................... 144,576,911 199,248,606
---------------------------------
TOTAL NET ASSETS ............................................................................ $ 1,342,838,240 $ 1,997,707,424
=================================
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .......................................................................... $ 1,159,519,969 $ 1,428,059,819
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................................... 3,423,952 11,815,936
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 51,734,035 140,625,470
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ................ 128,160,284 415,074,460
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT SALES .. 0 2,131,739
---------------------------------
TOTAL NET ASSETS ............................................................................ $ 1,342,838,240 $ 1,997,707,424
---------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE (1)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - ADMINISTRATOR CLASS ......................................................... $ 149,391,176 $ 139,729,321
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................................................. 6,261,401 3,107,550
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ....................... $ 23.86 $ 44.96
NET ASSETS - ADVISOR CLASS ............................................................... N/A $ 48,432,580
SHARES OUTSTANDING - ADVISOR CLASS ....................................................... N/A 1,109,875
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADVISOR CLASS ............................. N/A $ 43.64
NET ASSETS - INSTITUTIONAL CLASS ......................................................... $ 127,241,238 N/A
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................................................. 5,316,786 N/A
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ....................... $ 23.93 N/A
NET ASSETS - INVESTOR CLASS .............................................................. $ 1,066,205,826 $ 1,809,545,523
SHARES OUTSTANDING - INVESTOR CLASS ...................................................... 44,728,560 40,685,300
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................ $ 23.84 $ 44.48
---------------------------------
INVESTMENTS AT COST ......................................................................... $ 1,354,558,420 $ 1,768,212,680
---------------------------------
SECURITIES ON LOAN, AT MARKET VALUE ......................................................... $ 135,886,618 $ 179,069,509
=================================
PREMIUMS RECEIVED ON WRITTEN OPTIONS ........................................................ $ 0 $ 2,378,025
=================================
SMALL CAP SMALL/MID
DISCIPLINED CAP VALUE
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES, AT MARKET VALUE ........................................................... $ 445,898,099 $ 214,769,314
COLLATERAL FOR SECURITIES LOANED (NOTE 2) ................................................ 12,003,282 0
INVESTMENTS IN AFFILIATES ................................................................ 98,788,414 738,102
---------------------------------
TOTAL INVESTMENTS AT MARKET VALUE (SEE COST BELOW) .......................................... 556,689,795 215,507,416
---------------------------------
CASH ..................................................................................... 0 0
RECEIVABLE FOR FUND SHARES ISSUED ........................................................ 1,677,516 221,462
RECEIVABLE FOR INVESTMENTS SOLD .......................................................... 274,323 2,271,846
RECEIVABLES FOR DIVIDENDS AND INTEREST ................................................... 624,362 47,260
RECEIVABLE FOR INTEREST RATE SWAPS/SPREAD LOCKS .......................................... 0 0
---------------------------------
TOTAL ASSETS ................................................................................ 559,265,996 218,047,984
---------------------------------
LIABILITIES
OPTION WRITTEN, AT VALUE ................................................................. 0 0
PAYABLE FOR FUND SHARES REDEEMED ......................................................... 347,484 144,811
PAYABLE FOR INVESTMENTS PURCHASED ........................................................ 3,974,375 2,902,700
PAYABLE TO INVESTMENT ADVISOR AND AFFILIATES (NOTE 3) .................................... 514,793 199,897
PAYABLE FOR SECURITIES LOANED (NOTE 2) ................................................... 12,003,282 0
ACCRUED EXPENSES AND OTHER LIABILITIES ................................................... 127,384 72,605
---------------------------------
TOTAL LIABILITIES ........................................................................... 16,967,318 3,320,013
---------------------------------
TOTAL NET ASSETS ............................................................................ $ 542,298,678 $ 214,727,971
=================================
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL .......................................................................... $ 485,122,022 $ 184,119,114
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) ............................................... (438,057) (824,788)
UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS .................................... 23,997,548 7,705,925
NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS, FOREIGN CURRENCIES AND
TRANSLATION OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES ................ 33,617,165 23,727,720
NET UNREALIZED APPRECIATION (DEPRECIATION) OF OPTIONS, SWAP AGREEMENTS, AND SHORT SALES .. 0 0
---------------------------------
TOTAL NET ASSETS ............................................................................ $ 542,298,678 $ 214,727,971
---------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE (1)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - ADMINISTRATOR CLASS ......................................................... $ 14,943,455 $ 40,541,280
SHARES OUTSTANDING - ADMINISTRATOR CLASS ................................................. 813,244 2,302,944
NET ASSET VALUE AND OFFERING PRICE PER SHARE - ADMINISTRATOR CLASS ....................... $ 18.38 $ 17.60
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 ......................................................... $ 112,717,757 $ 11,162
SHARES OUTSTANDING - INSTITUTIONAL CLASS ................................................. 6,111,242 633
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INSTITUTIONAL CLASS ....................... $ 18.44 $ 17.63
NET ASSETS - INVESTOR CLASS .............................................................. $ 414,637,466 $ 174,175,529
SHARES OUTSTANDING - INVESTOR CLASS ...................................................... 22,755,668 9,980,132
NET ASSET VALUE AND OFFERING PRICE PER SHARE - INVESTOR CLASS ............................ $ 18.22 $ 17.45
---------------------------------
INVESTMENTS AT COST ......................................................................... $ 523,072,630 $ 191,780,108
---------------------------------
SECURITIES ON LOAN, AT MARKET VALUE ......................................................... $ 10,853,706 $ 0
=================================
PREMIUMS RECEIVED ON WRITTEN OPTIONS ........................................................ $ 0 $ 0
=================================
53
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
DISCOVERY ENTERPRISE
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ................................................................................ $ 338,274 $ 567,758
INTEREST ................................................................................. 438 0
INCOME FROM AFFILIATED SECURITIES ........................................................ 259,570 279,546
SECURITIES LENDING INCOME, NET ........................................................... 14,358 7,846
---------------------------------
TOTAL INVESTMENT INCOME ..................................................................... 612,640 855,150
---------------------------------
EXPENSES
ADVISORY FEES ............................................................................ 1,147,388 951,593
ADMINISTRATION FEES
FUND LEVEL ............................................................................ 76,493 63,439
ADMINISTRATOR CLASS ................................................................... 36,969 1,845
ADVISOR CLASS ......................................................................... N/A 2,333
INSTITUTIONAL CLASS ................................................................... 12 22,310
INVESTOR CLASS ........................................................................ 522,002 433,414
CUSTODY FEES ............................................................................. 30,597 25,376
SHAREHOLDER SERVICING FEES (NOTE 3) ...................................................... 382,424 247,480
ACCOUNTING FEES .......................................................................... 22,183 26,880
PROFESSIONAL FEES ........................................................................ 18,256 25,402
REGISTRATION FEES ........................................................................ 17,868 16,734
SHAREHOLDER REPORTS ...................................................................... 25,374 21,474
TRUSTEES' FEES ........................................................................... 4,478 4,478
OTHER FEES AND EXPENSES .................................................................. 3,172 632
---------------------------------
TOTAL EXPENSES .............................................................................. 2,287,216 1,843,390
---------------------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ............................................. (261,115) (47,474)
NET EXPENSES ............................................................................. 2,026,101 1,795,916
---------------------------------
NET INVESTMENT INCOME (LOSS) ................................................................ (1,413,461) (940,766)
---------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 13,421,625 7,811,090
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ..................................... 0 0
---------------------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................................................... 13,421,625 7,811,090
---------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 22,374,070 20,457,615
FORWARD FOREIGN CURRENCY CONTRACTS ....................................................... 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ..................................... 0 0
---------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......................... 22,374,070 20,457,615
=================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ...................................... 35,795,695 28,268,705
---------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. $ 34,382,234 $ 27,327,939
=================================
(1) NET OF FOREIGN WITHHOLDING TAXES OF .................................................. $ 3,624 $ 4,435
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
STATEMENTS OF OPERATIONS--
FOR THE SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED)
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
MID CAP
DISCIPLINED OPPORTUNITY
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ................................................................................ $ 7,863,624 $ 20,855,281
INTEREST ................................................................................. 6,980 53,409
INCOME FROM AFFILIATED SECURITIES ........................................................ 4,400,155 4,433,010
SECURITIES LENDING INCOME, NET ........................................................... 38,690 227,573
---------------------------------
TOTAL INVESTMENT INCOME ..................................................................... 12,309,449 25,569,273
EXPENSES
ADVISORY FEES ............................................................................ 4,176,446 6,877,154
ADMINISTRATION FEES
FUND LEVEL ............................................................................ 292,662 500,403
ADMINISTRATOR CLASS ................................................................... 61,663 74,271
ADVISOR CLASS ......................................................................... N/A 68,570
INSTITUTIONAL CLASS ................................................................... 52,566 N/A
INVESTOR CLASS ........................................................................ 2,060,792 4,059,206
CUSTODY FEES ............................................................................. 117,065 200,161
SHAREHOLDER SERVICING FEES (NOTE 3) ...................................................... 1,299,041 2,502,013
ACCOUNTING FEES .......................................................................... 48,841 71,191
PROFESSIONAL FEES ........................................................................ 34,030 32,144
REGISTRATION FEES ........................................................................ 21,807 23,651
SHAREHOLDER REPORTS ...................................................................... 54,877 149,585
TRUSTEES' FEES ........................................................................... 4,478 4,478
OTHER FEES AND EXPENSES .................................................................. 11,766 25,388
---------------------------------
TOTAL EXPENSES .............................................................................. 8,236,034 14,588,215
---------------------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ............................................. (942,100) (1,323,038)
NET EXPENSES ............................................................................. 7,293,934 13,265,177
---------------------------------
NET INVESTMENT INCOME (LOSS) ................................................................ 5,015,515 12,304,096
---------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 52,153,025 154,125,203
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ..................................... 0 3,309,423
---------------------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................................................... 52,153,025 157,434,626
---------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 42,398,927 29,026,338
FORWARD FOREIGN CURRENCY CONTRACTS ....................................................... 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ..................................... 0 335,252
---------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......................... 42,398,927 29,361,590
=================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ...................................... 94,551,952 186,796,216
---------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. $ 99,567,467 $ 199,100,312
=================================
(1) NET OF FOREIGN WITHHOLDING TAXES OF .................................................. $ 28,664 $ 30,210
SMALL CAP SMALL/MID
DISCIPLINED CAP VALUE
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
DIVIDENDS ................................................................................ $ 1,461,856 $ 833,693
INTEREST ................................................................................. 1,789 688
INCOME FROM AFFILIATED SECURITIES ........................................................ 2,113,399 170,621
SECURITIES LENDING INCOME, NET ........................................................... 8,074 0
---------------------------------
TOTAL INVESTMENT INCOME ..................................................................... 3,585,118 1,005,002
EXPENSES
ADVISORY FEES ............................................................................ 2,199,754 988,825
ADMINISTRATION FEES
FUND LEVEL ............................................................................ 122,414 54,935
ADMINISTRATOR CLASS ................................................................... 5,896 27,458
ADVISOR CLASS ......................................................................... N/A N/A
INSTITUTIONAL CLASS ................................................................... 36,772 4
INVESTOR CLASS ........................................................................ 868,350 370,828
CUSTODY FEES ............................................................................. 48,966 21,974
SHAREHOLDER SERVICING FEES (NOTE 3) ...................................................... 497,157 274,660
ACCOUNTING FEES .......................................................................... 28,624 18,275
PROFESSIONAL FEES ........................................................................ 27,707 17,951
REGISTRATION FEES ........................................................................ 22,268 5,444
SHAREHOLDER REPORTS ...................................................................... 21,035 12,529
TRUSTEES' FEES ........................................................................... 4,478 4,478
OTHER FEES AND EXPENSES .................................................................. 5,891 2,128
---------------------------------
TOTAL EXPENSES .............................................................................. 3,889,312 1,799,489
---------------------------------
LESS:
WAIVED FEES AND REIMBURSED EXPENSES (NOTE 3) ............................................. (332,789) (213,584)
NET EXPENSES ............................................................................. 3,556,523 1,585,905
---------------------------------
NET INVESTMENT INCOME (LOSS) ................................................................ 28,595 (580,903)
---------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 23,998,651 9,482,624
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ..................................... 0 (256,661)
---------------------------------
NET REALIZED GAIN (LOSS) FROM INVESTMENTS ................................................... 23,998,651 9,225,963
---------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
SECURITIES, FOREIGN CURRENCIES AND FOREIGN CURRENCY TRANSLATION .......................... 6,234,335 9,120,601
FORWARD FOREIGN CURRENCY CONTRACTS ....................................................... 0 0
OPTIONS, SWAP AGREEMENTS AND SHORT SALE TRANSACTIONS ..................................... 0 (118,052)
---------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS ......................... 6,234,335 9,002,549
=================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ...................................... 30,232,986 18,228,512
---------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............................. $ 30,261,581 $ 17,647,609
=================================
(1) NET OF FOREIGN WITHHOLDING TAXES OF ..................................................... $ 34 $ 44,998
55
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
DISCOVERY FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $ 286,571,127 $ 204,356,236
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... (1,413,461) (2,188,937)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 13,421,625 13,453,981
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... 22,374,070 20,210,652
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 34,382,234 31,475,696
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS .................................................................. 0 0
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. 0 0
INVESTOR CLASS ....................................................................... 0 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS .................................................................. (3,584,326) (392,483)
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. (544) 0
INVESTOR CLASS ....................................................................... (11,345,682) (14,523,677)
------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................................... (14,930,552) (14,916,160)
------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................... 16,479,357 107,194,181
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........................... 2,177,815 295,228
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (9,017,811) (45,711,790)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ..................................................... 9,639,361 61,777,619
------------------------------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS .............................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .......................................... N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS ................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ........................................................... N/A N/A
------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................... 53,693 10,000
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ........................... 544 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................................. 0 0
-------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ..................................................... 54,237 10,000
-------------------------------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ............................................. 40,740,786 63,172,518
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ......................................... 0 0
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ......................................... 11,024,729 14,134,442
COST OF SHARES REDEEMED - INVESTOR CLASS ............................................... (38,345,967) (73,439,224)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS .......................................................... 13,419,548 3,867,736
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................................... 23,113,146 65,655,355
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... 42,564,828 82,214,891
------------------------------------
ENDING NET ASSETS ......................................................................... $ 329,135,955 $ 286,571,127
====================================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................................. 716,026 4,901,446
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .......... 97,660 14,235
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ......................................... (393,990) (2,107,236)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ....................... 419,696 2,808,445
------------------------------------
SHARES SOLD - ADVISOR CLASS ............................................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ......................... N/A N/A
SHARES REDEEMED - ADVISOR CLASS ........................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ............................. N/A N/A
------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................................. 2,254 467
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... 24 0
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ......................................... 0 0
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... 2,278 467
------------------------------------
SHARES SOLD - INVESTOR CLASS ........................................................... 1,783,987 2,948,688
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ........................ 497,057 683,493
SHARES REDEEMED - INVESTOR CLASS ....................................................... (1,675,610) (3,414,437)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ............................ 605,434 217,744
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ..................................................................... 1,027,408 3,026,656
------------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ (1,413,461) $ 0
====================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
STATEMENTS OF CHANGES IN NET ASSETS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
ENTERPRISE FUND
------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $ 233,433,978 $ 216,577,274
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... (940,766) (2,250,202)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 7,811,090 29,782,525
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... 20,457,615 3,022,491
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 27,327,939 30,554,814
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS .................................................................. 0 0
ADVISOR CLASS ........................................................................ 0 0
INSTITUTIONAL CLASS .................................................................. 0 0
INVESTOR CLASS ....................................................................... 0 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS .................................................................. 0 0
ADVISOR CLASS ........................................................................ 0 0
INSTITUTIONAL CLASS .................................................................. 0 0
INVESTOR CLASS ....................................................................... 0 0
------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................................... 0 0
------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................... 4,768,845 1,511,758
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........................... 0 0
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (4,816,031) (2,704,343)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ..................................................... (47,186) (1,192,585)
------------------------------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS .............................................. 70,100 807,917
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .......................................... 0 0
COST OF SHARES REDEEMED - ADVISOR CLASS ................................................ (374,130) (693,801)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ........................................................... (304,030) 114,116
------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................... 53,372,146 23,290,983
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ........................... 0 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................................. (9,253,404) (5,305,434)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ..................................................... 44,118,742 17,985,549
------------------------------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ............................................. 5,191,081 14,601,526
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ......................................... 0 0
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ......................................... 0 0
COST OF SHARES REDEEMED - INVESTOR CLASS ............................................... (27,003,668) (45,206,716)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS .......................................................... (21,812,587) (30,605,190)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................................... 21,954,939 (13,698,110)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... 49,282,878 16,856,704
------------------------------------
ENDING NET ASSETS ......................................................................... $ 282,716,856 $ 233,433,978
====================================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................................. 152,437 52,916
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .......... 0 0
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ......................................... (152,240) (94,097)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ....................... 197 (41,181)
------------------------------------
SHARES SOLD - ADVISOR CLASS ............................................................ 2,261 28,691
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ......................... 0 0
SHARES REDEEMED - ADVISOR CLASS ........................................................ (11,940) (24,559)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ............................. (9,679) 4,132
------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................................. 1,661,231 800,578
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... 0 0
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ......................................... (292,347) (185,133)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... 1,368,884 615,445
------------------------------------
SHARES SOLD - INVESTOR CLASS ........................................................... 167,047 512,464
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ........................ 0 0
SHARES REDEEMED - INVESTOR CLASS ....................................................... (869,907) (1,609,275)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ............................ (702,860) (1,096,811)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ..................................................................... 656,542 (518,415)
------------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ (940,766) $ 0
====================================
MID CAP DISCIPLINED FUND
------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $ 991,299,607 $ 707,111,813
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 5,015,515 4,854,394
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 52,153,025 65,243,158
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... 42,398,927 59,394,097
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 99,567,467 129,491,64
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS .................................................................. (714,398) (64,616)
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. (1,242,457) (282,243)
INVESTOR CLASS ....................................................................... (4,367,987) 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS .................................................................. (6,333,196) (7,807,445)
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. (8,845,203) (17,355,823)
INVESTOR CLASS ....................................................................... (49,011,946) (79,076,105)
------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................................... (70,515,187) (104,586,232)
------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................... 118,009,788 68,568,134
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........................... 6,998,647 7,866,615
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (76,188,181) (37,265,589)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ..................................................... 48,820,254 39,169,160
------------------------------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS .............................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .......................................... N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS ................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ........................................................... N/A N/A
------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................... 32,037,339 10,742,439
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ........................... 10,001,460 17,448,977
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................................. (53,642,481) (10,905,956)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ..................................................... (11,603,682) 17,285,460
------------------------------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ............................................. 486,626,864 410,722,817
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ......................................... 0 0
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ......................................... 51,361,766 75,869,912
COST OF SHARES REDEEMED - INVESTOR CLASS ............................................... (252,718,849) (283,764,972)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS .......................................................... 285,269,781 202,827,757
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................................... 322,486,353 259,282,377
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... 351,538,633 284,187,794
------------------------------------
ENDING NET ASSETS ......................................................................... $ 1,342,838,240 $ 991,299,607
====================================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................................. 5,064,551 3,109,846
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .......... 305,462 381,522
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ......................................... (3,255,267) (1,682,137)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ....................... 2,114,746 1,809,231
------------------------------------
SHARES SOLD - ADVISOR CLASS ............................................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ......................... N/A N/A
SHARES REDEEMED - ADVISOR CLASS ........................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ............................. N/A N/A
------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................................. 1,364,203 491,389
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... 434,985 844,670
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ......................................... (2,339,248) (498,496)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... (540,060) 837,563
------------------------------------
SHARES SOLD - INVESTOR CLASS ........................................................... 20,992,124 18,573,690
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ........................ 2,245,048 3,684,857
SHARES REDEEMED - INVESTOR CLASS ....................................................... (10,904,692) (12,935,340)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ............................ 12,332,480 9,323,207
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL
SHARE TRANSACTIONS ..................................................................... 13,907,166 11,970,001
------------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 3,423,952 $ 4,733,279
====================================
57
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
OPPORTUNITY FUND
------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $ 2,053,182,794 $ 2,189,698,227
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 12,304,096 4,523,263
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 157,434,626 351,628,711
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... 29,361,590 (74,824,689)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 199,100,312 281,327,285
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS .................................................................. (922,325) 0
ADVISOR CLASS ........................................................................ (76,971) 0
INSTITUTIONAL CLASS .................................................................. N/A N/A
INVESTOR CLASS (3,783,523) 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS .................................................................. (28,792,059) (15,408,235)
ADVISOR CLASS ........................................................................ (8,786,139) (12,540,328)
INSTITUTIONAL CLASS .................................................................. N/A N/A
INVESTOR CLASS ....................................................................... (311,787,186) (197,243,090)
------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................................... (354,148,203) (225,191,653)
------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................... 39,126,261 88,636,153
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........................... 29,696,698 15,396,737
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (82,332,812) (71,561,565)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ..................................................... (13,509,853) 32,471,325
------------------------------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS .............................................. 7,944,845 13,642,999
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .......................................... 8,756,981 12,483,375
COST OF SHARES REDEEMED - ADVISOR CLASS ................................................ (15,810,343) (94,839,701)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ........................................................... 891,483 (68,713,327)
------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................... N/A N/A
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ........................... N/A N/A
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................................. N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ..................................................... N/A N/A
------------------------------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ............................................. 65,692,814 139,610,742
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ......................................... 0 0
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ......................................... 305,531,879 191,288,208
COST OF SHARES REDEEMED - INVESTOR CLASS ............................................... (259,033,802) (487,308,013)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS .......................................................... 112,190,891 (156,409,063)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................................... 99,572,521 (192,651,065)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (55,475,370) (136,515,433)
------------------------------------
ENDING NET ASSETS ......................................................................... $ 1,997,707,424 $2,053,182,794
====================================
SHARES ISSUED AND REDEEMED: -
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................................. 907,169 1,818,555
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .......... 700,481 337,056
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ......................................... (1,916,436) (1,493,156)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ....................... (308,786) 662,455
------------------------------------
SHARES SOLD - ADVISOR CLASS ............................................................ 185,915 295,425
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ......................... 213,378 280,140
SHARES REDEEMED - ADVISOR CLASS ........................................................ (367,912) (2,073,727)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ............................. 31,381 (1,498,162)
------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... N/A N/A
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ......................................... N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... N/A N/A
------------------------------------
SHARES SOLD - INVESTOR CLASS ........................................................... 1,499,943 2,981,633
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ........................ 7,298,985 4,219,934
SHARES REDEEMED - INVESTOR CLASS ....................................................... (5,901,857) (10,405,328)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ............................ 2,897,071 (3,203,761)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 2,619,666 (4,039,468)
------------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ 11,815,936 $ 4,294,659
====================================
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
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND
-------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $ 426,387,948 $ 175,316,140
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... 28,595 (805,488)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 23,998,651 21,630,767
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... 6,234,335 24,495,211
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 30,261,581 45,320,490
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
ADMINISTRATOR CLASS .................................................................. 0 0
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. 0 0
INVESTOR CLASS ....................................................................... 0 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS .................................................................. (529,497) (65,291)
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. (3,109,104) (1,636,462)
INVESTOR CLASS ....................................................................... (17,653,538) (8,526,936)
------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................................... (21,292,139) (10,228,689)
------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................... 31,226,713 5,475,556
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........................... 525,096 61,886
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (22,947,434) (1,066,694)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ..................................................... 8,804,375 4,470,748
------------------------------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS .............................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .......................................... N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS ................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ..................................................... N/A N/A
------------------------------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS .............................................. 151,218,679 123,049,603
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .......................................... 3,109,105 1,636,230
COST OF SHARES REDEEMED - ADVISOR CLASS ................................................ (108,793,451) (69,869,775)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ..................................................... 45,534,333 54,816,058
------------------------------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ............................................. 95,417,590 230,550,567
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ......................................... 0 104
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ......................................... 17,156,552 8,230,890
COST OF SHARES REDEEMED - INVESTOR CLASS ............................................... (59,971,562) (82,088,360)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS .......................................................... 52,602,580 156,693,201
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................................... 106,941,288 215,980,007
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... 115,910,730 251,071,808
------------------------------------
ENDING NET ASSETS ......................................................................... $ 542,298,678 $ 426,387,948
====================================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................................. 1,689,429 319,935
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .......... 29,483 3,868
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ......................................... (1,236,930) (63,533)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ....................... 481,982 260,270
------------------------------------
SHARES SOLD - ADVISOR CLASS ............................................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ......................... N/A N/A
SHARES REDEEMED - ADVISOR CLASS ........................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ............................. N/A N/A
------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................................. 8,578,745 7,460,544
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... 173,985 102,201
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ......................................... (6,160,364) (4,178,254)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... 2,592,366 3,384,491
------------------------------------
SHARES SOLD - INVESTOR CLASS ........................................................... 5,317,878 13,408,811
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ........................ 969,845 515,707
SHARES REDEEMED - INVESTOR CLASS ....................................................... (3,337,824) (4,841,928)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ............................ 2,949,899 9,082,590
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 6,024,247 12,727,351
------------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ (438,057) $ (466,652)
====================================
SMALL/MID CAP VALUE FUND
-----------------------------------
FOR THE
SIX MONTHS ENDED FOR THE
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS ................................................................... $ 225,361,564 $ 69,138,909
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ........................................................... (580,903) (286,343)
NET REALIZED GAIN (LOSS) ON INVESTMENTS ................................................ 9,225,963 2,445,342
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS .................... 9,002,549 11,973,068
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........................... 17,647,609 14,132,067
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME ..................................................................
ADMINISTRATOR CLASS .................................................................. 0 0
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. 0 0
INVESTOR CLASS ....................................................................... 0 0
NET REALIZED GAIN ON SALE OF INVESTMENTS
ADMINISTRATOR CLASS .................................................................. (1,079,791) (712,591)
ADVISOR CLASS ........................................................................ N/A N/A
INSTITUTIONAL CLASS .................................................................. (145) 0
INVESTOR CLASS ....................................................................... (2,222,873) (1,083,387)
------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ....................................................... (3,302,809) (1,795,978)
------------------------------------
CAPITAL SHARES TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................... 7,958,351 48,980,711
REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) ........................... 706,950 708,247
COST OF SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ................................. (46,678,113) (10,268,955)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATOR CLASS ..................................................... (38,012,812) 39,420,003
------------------------------------
PROCEEDS FROM SHARES SOLD - ADVISOR CLASS .............................................. N/A N/A
REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS .......................................... N/A N/A
COST OF SHARES REDEEMED - ADVISOR CLASS ................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADVISOR CLASS ........................................................... N/A N/A
------------------------------------
PROCEEDS FROM SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................... 0 10,000
REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) ........................... 145 0
COST OF SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ................................. 0 0
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INSTITUTIONAL CLASS ..................................................... 145 10,000
------------------------------------
PROCEEDS FROM SHARES SOLD - INVESTOR CLASS ............................................. 41,183,213 132,696,344
PROCEEDS FROM REDEMPTION FEES - INVESTOR CLASS ......................................... 0 0
REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ......................................... 2,148,111 1,035,807
COST OF SHARES REDEEMED - INVESTOR CLASS ............................................... (30,297,050) (29,275,588)
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - INVESTOR CLASS .......................................................... 13,034,274 104,456,563
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE
TRANSACTIONS - TOTAL ................................................................... (24,978,393) 143,886,566
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS ..................................................... (10,633,593) 156,222,655
------------------------------------
ENDING NET ASSETS ......................................................................... $ 214,727,971 $ 225,361,564
====================================
SHARES ISSUED AND REDEEMED:
SHARES SOLD - ADMINISTRATOR CLASS (NOTE 1) ............................................. 469,405 3,013,687
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADMINISTRATOR CLASS (NOTE 1) .......... 42,639 46,811
SHARES REDEEMED - ADMINISTRATOR CLASS (NOTE 1) ......................................... (2,779,987) (646,759)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATOR CLASS ....................... (2,267,943) 2,413,739
------------------------------------
SHARES SOLD - ADVISOR CLASS ............................................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - ADVISOR CLASS ......................... N/A N/A
SHARES REDEEMED - ADVISOR CLASS ........................................................ N/A N/A
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADVISOR CLASS ............................. N/A N/A
------------------------------------
SHARES SOLD - INSTITUTIONAL CLASS (NOTE 1) ............................................. 0 625
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INSTITUTIONAL CLASS (NOTE 1) .......... 8 0
SHARES REDEEMED - INSTITUTIONAL CLASS (NOTE 1) ......................................... 0 0
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INSTITUTIONAL CLASS ....................... 8 625
------------------------------------
SHARES SOLD - INVESTOR CLASS ........................................................... 2,450,568 8,410,765
SHARES ISSUED IN REINVESTMENT OF DISTRIBUTIONS - INVESTOR CLASS ........................ 130,505 68,667
SHARES REDEEMED - INVESTOR CLASS ....................................................... (1,792,722) (1,853,926)
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - INVESTOR CLASS ............................ 788,351 6,625,506
------------------------------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... (1,479,584) 9,039,870
------------------------------------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .............................. $ (824,788) $ (243,885)
====================================
59
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 22.42 (0.10) 2.70 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 20.89 (0.56) 3.62 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. $ 19.17 (0.05) 1.77 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 22.43 0.13 2.50 0.00
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ $ 21.42 (0.01) 1.02 0.00
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 22.31 (0.11) 2.67 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 20.84 (0.20) 3.20 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ $ 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
ENTERPRISE FUND
- -------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 29.83 (0.11) 3.56 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 25.95 0.07 3.81 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ $ 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 29.31 (0.04) 3.40 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 25.57 (0.31) 4.05 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ $ 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
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 29.90 (0.37) 3.88 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 25.95 (0.34) 4.29 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ $ 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 29.11 (0.16) 3.47 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 25.43 (0.33) 4.01 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ $ 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
MID CAP DISCIPLINED FUND
- -------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 23.40 0.09 1.93 (0.15)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 23.25 0.12 3.47 (0.02)
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. $ 21.84 0.05(6) 1.36 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 23.47 0.13 1.93 (0.19)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 23.28 0.20 3.46 (0.05)
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. $ 21.84 0.07(6) 1.37 0.00
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $ 23.36 0.08 1.93 (0.12)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $ 23.23 0.10 3.45 0.00
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ $ 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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
60
FINANCIAL HIGHLIGHTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
FROM NET NET ASSET
REALIZED VALUE PER
GAINS SHARE
- --------------------------------------------------------------------------------------
DISCOVERY FUND
- --------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.16) $23.86
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (1.53) $22.42
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.00 $20.89
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.16) $23.90
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ 0.00 $22.43
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.16) $23.71
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (1.53) $22.31
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ (0.97) $20.84
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.21) $21.53
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.21) $19.73
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (0.45) $14.42
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.23) $16.84
ENTERPRISE FUND
- --------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $33.28
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $29.83
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 0.00 $25.95
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $25.36
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $21.98
AUGUST 30, 2002(4) TO DECEMBER 31, 2002 ............... 0.00 $15.94
ADVISOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $32.67
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $29.31
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 0.00 $25.57
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $25.04
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $21.79
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $15.86
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $22.04
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $33.41
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $29.90
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 0.00 $25.95
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $25.30
JUNE 30, 2003(4) TO DECEMBER 31, 2003 ................. 0.00 $21.87
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.00 $32.42
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.00 $29.11
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 0.00 $25.43
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $24.95
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $21.78
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $15.90
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.00 $22.14
MID CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.41) $23.86
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (3.42) $23.40
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.00 $23.25
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.41) $23.93
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (3.42) $23.47
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.00 $23.28
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (1.41) $23.84
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (3.42) $23.36
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ (0.18) $23.23
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.80) $22.34
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.71) $20.13
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (0.52) $14.85
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.00)(5) $17.42
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
-----------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- ----------------------------------------------------------------------------------------------------------------
DISCOVERY FUND
- ----------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.75)% 1.23% (0.08)% 1.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.69)% 1.25% (0.10)% 1.15%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. (0.76)% 1.24% (0.11)% 1.13%
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.46)% 0.96% (0.01)% 0.95%
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ (0.37)% 0.87% 0.00% 0.87%
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.98)% 1.58% (0.20)% 1.38%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.91)% 1.58% (0.20)% 1.38%
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ (1.00)% 1.55% (0.16)% 1.39%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.11)% 1.44% (0.04)% 1.40%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.67)% 1.47% (0.04)% 1.43%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (0.38)% 1.50% (0.04)% 1.46%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.46)% 1.49% (0.01)% 1.48%
ENTERPRISE FUND
- ----------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.48)% 1.25% (0.10)% 1.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.63)% 1.23% (0.08)% 1.15%
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ (0.64)% 1.23% (0.08)% 1.15%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.83)% 1.34% (0.20)% 1.14%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.82)% 1.30% (0.14)% 1.16%
AUGUST 30, 2002(4) TO DECEMBER 31, 2002 ............... (0.63)% 1.32% (0.18)% 1.14%
ADVISOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.73)% 1.42% (0.02)% 1.40%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.89)% 1.42% (0.03)% 1.39%
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ (1.02)% 1.49% (0.04)% 1.45%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.22)% 1.60% (0.05)% 1.55%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (1.14)% 1.53% (0.03)% 1.50%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (1.33)% 1.82% (0.02)% 1.80%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (1.60)% 2.09% (0.01)% 2.08%
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.21)% 0.98% (0.08)% 0.90%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.39)% 0.98% (0.08)% 0.90%
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ (0.47)% 0.97% (0.09)% 0.88%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.47)% 0.88% (0.05)% 0.83%
JUNE 30, 2003(4) TO DECEMBER 31, 2003 ................. (0.67)% 1.18% (0.21)% 0.97%
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.90)% 1.59% (0.02)% 1.57%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (1.05)% 1.59% (0.03)% 1.56%
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ (1.23)% 1.69% (0.04)% 1.65%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.51)% 1.89% (0.04)% 1.85%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (1.44)% 1.96% (0.16)% 1.80%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (1.51)% 2.02% (0.06)% 1.96%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (1.22)% 1.76% 0.00% 1.76%
MID CAP DISCIPLINED FUND
- ----------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.95% 1.16% (0.01)% 1.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.70% 1.20% (0.05)% 1.15%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.36% 1.20% (0.06)% 1.14%
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 1.23% 0.89% 0.00% 0.89%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.93% 0.92% (0.02)% 0.90%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.53% 0.92% (0.04)% 0.88%
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 1.79% 1.51% (0.20)% 1.31%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.53% 1.54% (0.23)% 1.31%
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 0.02% 1.51% (0.17)% 1.34%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.36% 1.35% (0.05)% 1.30%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.13% 1.49% (0.04)% 1.45%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.09% 1.48% (0.01)% 1.47%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.22)% 1.53% (0.01)% 1.52%
PORTFOLIO NET ASSETS AT
TOTAL TURNOVER END OF PERIOD
RETURN(2) RATE(3) (000'S OMITTED)
- -----------------------------------------------------------------------------------------------------
DISCOVERY FUND
- -----------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 12.08% 49% $ 82,796
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 15.22% 120% $ 68,374
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 8.97% 110% $ 5,043
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 12.16% 49% $ 66
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ 4.72% 120% $ 10
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.90% 49% $ 246,274
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.96% 120% $ 218,187
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 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
ENTERPRISE FUND
- -----------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.57% 47% $ 2,855
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.95% 118% $ 2,553
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.46% 47% $ 1,646
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.63% 118% $ 1,761
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 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
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.74% 47% $ 86,610
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 15.22% 118% $ 36,587
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 11.37% 47% $ 191,606
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.47% 118% $ 192,533
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 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
MID CAP DISCIPLINED FUND
- -----------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 8.95% 39% $ 149,391
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 17.47% 125% $ 97,014
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 6.46% 94% $ 54,344
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 9.10% 39% $ 127,241
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 17.77% 125% $ 137,471
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 6.59% 94% $ 116,867
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 8.91% 39% $ 1,066,206
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 17.26% 125% $ 756,815
JANUARY 1, 2005 TO OCTOBER 31, 2005(7) ................ 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
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
- ---------------------------------------------------------------------------------------------------------------------
OPPORTUNITY FUND
- ---------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $49.05 0.29 4.28 (0.22)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $47.61 0.19 6.18 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $47.74 0.26 4.14 (0.06)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $46.57 0.23 5.87 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)
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $48.54 0.26 4.21 (0.09)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $47.29 0.09 6.09 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)
SMALL CAP DISCIPLINED FUND
- ---------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $18.11 (0.01) 1.15 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $16.07 0.01(6) 2.81 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. $15.99 (0.01) 0.09 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $18.16 0.00 1.15 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $16.09 0.03(6) 2.82 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. $15.99 0.00 0.10 0.00
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $18.00 0.00 1.09 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $16.04 (0.06)(6) 2.80 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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $16.45 0.00 1.38 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $14.65 0.00 2.12 0.00
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. $13.22 0.00 1.43 0.00
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $16.45 0.02 1.39 0.00
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ $16.01 0.01 0.43 0.00
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ $16.34 (0.05) 1.39 0.00
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. $14.62 (0.01) 2.05 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.
62
FINANCIAL HIGHLIGHTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
DISTRIBUTIONS ENDING
FROM NET NET ASSET
REALIZED VALUE PER
GAINS SHARE
- ----------------------------------------------------------------------------------
OPPORTUNITY FUND
- ----------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (8.44) $ 44.96
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (4.93) $ 49.05
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... 0.00 $ 47.61
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 46.65
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 39.58
AUGUST 30(4), 2002 TO DECEMBER 31, 2002 ............... 0.00 $ 28.73
ADVISOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (8.44) $ 43.64
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (4.93) $ 47.74
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... 0.00 $ 46.57
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 45.71
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 38.94
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 28.37
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.95) $ 38.92
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (8.44) $ 44.48
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (4.93) $ 48.54
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... 0.00 $ 47.29
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. 0.00 $ 46.40
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 39.45
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. 0.00 $ 28.70
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.95) $ 39.29
SMALL CAP DISCIPLINED FUND
- ----------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.87) $ 18.38
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.78) $ 18.11
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.00 $ 16.07
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.87) $ 18.44
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.78) $ 18.16
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.00 $ 16.09
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.87) $ 18.22
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.78) $ 18.00
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... (0.21) $ 16.04
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.90) $ 16.70
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.87) $ 13.91
MARCH 28, 2002(4) TO DECEMBER 31, 2002 ................ 0.00 $ 9.12
SMALL/MID CAP VALUE FUND
- ----------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.23) $ 17.60
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.32) $ 16.45
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.00 $ 14.65
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.23) $ 17.63
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ 0.00 $ 16.45
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.23) $ 17.45
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.32) $ 16.34
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... (0.35) $ 14.62
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.48) $ 13.83
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. 0.00 $ 12.01
MARCH 28, 2002(4) TO DECEMBER 31, 2002 ................ 0.00 $ 7.58
RATIO TO AVERAGE NET ASSETS (ANNUALIZED)(1)
-------------------------------------------------
NET INVESTMENT GROSS EXPENSES NET
INCOME (LOSS) EXPENSES WAIVED EXPENSES
- -------------------------------------------------------------------------------------------------------------
OPPORTUNITY FUND
- -------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 1.35% 1.14% (0.10)% 1.04%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.48% 1.13% (0.09)% 1.04%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... (0.14)% 1.13% (0.10)% 1.03%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.35)% 1.27% (0.12)% 1.15%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.20)% 1.55% (0.36)% 1.19%
AUGUST 30(4), 2002 TO DECEMBER 31, 2002 ............... 0.21% 1.22% (0.06)% 1.16%
ADVISOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 1.25% 1.32% (0.03)% 1.29%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.39% 1.30% (0.01)% 1.29%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... (0.49)% 1.42% (0.02)% 1.40%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.76)% 1.60% (0.04)% 1.56%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.58)% 1.56% (0.01)% 1.55%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (0.38)% 1.58% (0.01)% 1.57%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. (0.28)% 1.66% 0.00% 1.66%
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 1.22% 1.49% (0.14)% 1.35%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.18% 1.47% (0.12)% 1.35%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... (0.46)% 1.46% (0.10)% 1.36%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.55)% 1.39% (0.04)% 1.35%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.43)% 1.42% (0.02)% 1.40%
JANUARY 1, 2002 TO DECEMBER 31, 2002 .................. (0.23)% 1.41% (0.01)% 1.40%
JANUARY 1, 2001 TO DECEMBER 31, 2001 .................. 0.19% 1.29% 0.00% 1.29%
SMALL CAP DISCIPLINED FUND
- -------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.25% 1.37% (0.17)% 1.20%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.08% 1.39% (0.19)% 1.20%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. (0.30)% 1.45% (0.21)% 1.24%
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 0.46% 1.09% (0.09)% 1.00%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.20% 1.11% (0.11)% 1.00%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.08% 1.10% (0.52)% 0.58%
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.10)% 1.71% (0.14)% 1.57%(8)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.37)% 1.73% (0.12)% 1.61%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... (0.57)% 1.73% (0.11)% 1.62%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (0.55)% 1.65% (0.06)% 1.59%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.89)% 1.89% (0.18)% 1.71%
MARCH 28, 2002(4) TO DECEMBER 31, 2002 ................ (0.98)% 2.55% (0.60)% 1.95%
SMALL/MID CAP VALUE FUND
- -------------------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.23)% 1.37% (0.22)% 1.15%
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 0.08% 1.43% (0.28)% 1.15%
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. (0.18)% 1.48% (0.24)% 1.24%
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.04)% 1.08% (0.13)% 0.95%
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ 0.53% 1.04% (0.15)% 0.89%
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ (0.63)% 1.73% (0.19)% 1.54%(9)
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. (0.33)% 1.78% (0.21)% 1.57%
JANUARY 1, 2005 TO OCTOBER 31, 2005 ................... (1.01)% 1.95% (0.25)% 1.70%
JANUARY 1, 2004 TO DECEMBER 31, 2004 .................. (1.30)% 2.06% (0.30)% 1.76%
JANUARY 1, 2003 TO DECEMBER 31, 2003 .................. (0.55)% 2.86% (1.06)% 1.80%
MARCH 28, 2002(4) TO DECEMBER 31, 2002 ................ (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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 10.50% 21% $ 139,730
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.15% 39% $ 167,560
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 10.38% 21% $ 48,433
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 13.86% 39% $ 51,489
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
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 10.34% 21% $ 1,809,551
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 13.81% 39% $ 1,834,134
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
SMALL CAP DISCIPLINED FUND
- --------------------------------------------------------------------------------------------------
ADMINISTRATOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 6.46% 39% $ 14,943
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 18.17% 100% $ 5,999
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.50% 56% $ 1,141
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 6.50% 39% $ 112,718
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 18.34% 100% $ 63,905
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 0.63% 56% $ 2,162
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 6.21% 39% $ 414,637
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 17.68% 100% $ 356,484
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, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 8.49% 63% $ 40,541
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.66% 56% $ 75,172
APRIL 11, 2005(4) TO OCTOBER 31, 2005 ................. 10.82% 80% $ 31,613
INSTITUTIONAL CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 8.61% 63% $ 11
AUGUST 31, 2006(4) TO OCTOBER 31, 2006 ................ 2.75% 56% $ 10
INVESTOR CLASS
NOVEMBER 1, 2006 TO APRIL 30, 2007 (UNAUDITED) ........ 8.30% 63% $ 174,176
NOVEMBER 1, 2005 TO OCTOBER 31, 2006 .................. 14.13% 56% $ 150,180
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
63
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) The Fund changed its fiscal year-end from December 31 to October 31.
(8) Effective March 9, 2007, the expense cap for Small Cap Disciplined Fund -
Investor Class changed from 1.61% to 1.49%. The blended expense cap as of
April 30, 2007, is 1.57%.
(9) Effective March 9, 2007, the expense cap for Small/MidCap Value Fund -
Investor Class changed from 1.57% to 1.49%. The blended expense cap as of
April 30, 2007, is 1.54%.
64
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, 2007, was comprised of 109 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.
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. ("NASDAQ") are valued at the NASDAQ Official Closing
Price ("NOCP"), and if no NOCP is available, then at the last reported sales
price. If no sales price is shown on NASDAQ, the bid price will be used. In the
absence of any sale of securities listed on the NASDAQ, and in the case of other
securities, including U.S. Government obligations, but excluding debt securities
maturing in 60 days or less, the price will be deemed "stale" and the valuations
will be determined in accordance with the Funds' Fair Valuation Procedures.
Investments in the Underlying Funds are valued at the closing net asset value
per share of each Underlying Fund on the valuation date.
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 established in good
faith and approved by the Board of Trustees.
65
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 Funds at
year-end are noted in the Funds' Portfolio of Investments. The following
positions were held at April 30, 2007:
Small Cap Disciplined Fund
Unrealized % of Shares
Security Name Shares Cost Market Value Gain/Loss Outstanding
- -------------------------------------------------------------------------------------------------------
PLAYBOY ENTERPRISES
INCORPORATED CLASS B 1,500,000 $15,522,555 $ 14,685,000 $ (837,555) 5.29%
- -------------------------------------------------------------------------------------------------------
Small/Mid Cap Value Fund
Unrealized % of Shares
Security Name Shares Cost Market Value Gain/Loss Outstanding
- -------------------------------------------------------------------------------------------------------
ALLIED HEALTHCARE PRODUCTS 465,988 $ 2,445,528 $ 3,145,419 $ 699,891 5.91%
- -------------------------------------------------------------------------------------------------------
ENCORIUM GROUP INCORPORATED 1,698,502 4,348,617 6,369,383 2,020,766 12.72%
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
distributions the earnings and profits distributed to shareholders on the
redemption of fund shares during the year.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from GAAP. The
timing and character of distributions made during the period from net investment
income or net realized gains may also differ from their ultimate
characterization for federal income tax purposes. To the extent that these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment. Temporary
differences do not require reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes.
It is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under Subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of substantially all of its investment
company taxable income and any net realized capital gains (after reduction for
capital loss carryforwards) sufficient to relieve it from all, or substantially
all, federal income taxes. Accordingly, no provision for federal income taxes
was required at April 30, 2007.
At October 31, 2006, the Fund's prior fiscal year end, net capital loss
carryforwards, which are available to offset future net realized capital gains,
were:
Capital Loss
Fund Expiration Year Carryforwards
- --------------------------------------------------------------------------------
ENTERPRISE FUND 2009 161,574,640
2010 64,764,000
- --------------------------------------------------------------------------------
66
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
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, 2007, there were no open futures contracts.
SECURITY LOANS
The Fund(s) may loan securities in return for securities, irrevocable
letters of credit or cash collateral, which is invested in various short-term
fixed income securities. A Fund may receive compensation for lending securities
in the form of fees or by retaining a portion of interest on the investment
securities or cash received as collateral. A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral. The collateral is equal to at least 102% of the market
value of the securities loaned plus accrued interest when the transaction is
entered into. The collateral supporting loans of domestic and foreign equity
securities and corporate bonds 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, 2007, are shown on the Statements of Assets and
Liabilities.
SWAP CONTRACTS
The Fund(s) 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, 2007, 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 $27,672,112 Market Value Notional Amount x 16-Apr-08 $ 829,792
FUND Finance Appreciation (3 Months USD LIBOR)
on Customized plus Market Value
Stock Index* Appreciation on
Customized Stock Index*
- ---------------------------------------------------------------------------------------------------------------------------
OPPORTUNITY Lehman Brothers $32,004,720 Market Value Notional Amount x 9-Jul-07 $ (287,874)
FUND Finance Appreciation (3 Months USD LIBOR
on Customized plus 30 bps) plus Market
Stock Index** Value Appreciation on
Customized Stock Index**
- ---------------------------------------------------------------------------------------------------------------------------
OPPORTUNITY Lehman Brothers $17,640,849 Market Value Notional Amount x 29-Oct-07 $3,309,894
FUND Finance Appreciation (3 Months 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, 2007: AFLAC Incorporated, Amgen Incorporated,
Carnival Corporation, Time Warner Incorporated, UnitedHealth Group
Incorporated, Viacom Incorporated, Wyeth and Pfizer Incorporated.
67
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2007: Bank of America Incorporated, City National
Corporation, Marshall & IIsley Corporation, Synovus Financial Corporation,
SunTrust Banks Incorporated, TCF Financial Corporation, US Bancorp,
Wachovia Corporation, and Zions Bancorp.
*** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2007: Alcan Incorporated, Alcoa Incorporated,
Freeport-McMoRan Copper & Gold Incorporated, Rio Tinto plc and BHP
Billiton Limited.
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 six-month period ended April 30,
2007, were as follows:
Opportunity Fund
----------------------
Call Options Written Contracts Premiums Received
- ------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD (14,924) $(2,033,956)
- ------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN (25,831) (3,442,275)
- ------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS 0 0
- ------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED 15,624 1,857,107
- ------------------------------------------------------------------------------------------------------
OPTIONS EXERCISED 20,681 1,241,099
- ------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD (4,450) $(2,378,025)
Small/Mid Cap Value Fund
------------------------
Call Options Written Contracts Premiums Received
- ------------------------------------------------------------------------------------------------------
OPTIONS AT BEGINNING OF PERIOD (1,385) $ (732,672)
- ------------------------------------------------------------------------------------------------------
OPTIONS WRITTEN (1,806) (688,584)
- ------------------------------------------------------------------------------------------------------
OPTIONS TERMINATED IN CLOSING TRANSACTIONS 3,083 1,398,000
- ------------------------------------------------------------------------------------------------------
OPTIONS EXPIRED 80 15,570
- ------------------------------------------------------------------------------------------------------
OPTIONS EXERCISED 28 7,686
- ------------------------------------------------------------------------------------------------------
OPTIONS AT END OF PERIOD 0 $ 0
Open written call and put option contracts as of April 30, 2007, 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 Funds
Management 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
- -------------------------------------------------------------------------------------------------------------------------------
68
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
Advisory Fee Subadvisory Fee
Average Daily (% of Average Average Daily (% of Average
Fund Net Assets Daily Net Assets) Subadviser Net Assets Daily Net Assets)
- -------------------------------------------------------------------------------------------------------------------------------
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 $100 million 0.500
Next $2 billion 0.800 Incorporated Over $200 million 0.400
Next $2 billion 0.775
Over $5 billion 0.750
- -------------------------------------------------------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------------------------------------------------------
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 All asset levels 0.10
- --------------------------------------------------------------------------------
ADVISOR CLASS All asset levels 0.28
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS All asset levels 0.08
- --------------------------------------------------------------------------------
INVESTOR CLASS All asset levels 0.45
- --------------------------------------------------------------------------------
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.
69
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
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
For the six-month period ended April 30, 2007, shareholder servicing fees
paid were as follows:
Fund Administrator Advisor Investor
- --------------------------------------------------------------------------------
DISCOVERY FUND $ 92,423 N/A $ 290,001
- --------------------------------------------------------------------------------
ENTERPRISE FUND 4,612 $ 2,083 240,785
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND 154,156 N/A 1,144,885
- --------------------------------------------------------------------------------
OPPORTUNITY FUND 185,676 61,223 2,255,114
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND 14,740 N/A 482,417
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND 68,645 N/A 206,015
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
Funds Management waived fees or reimbursed expenses proportionately from
all classes, first from advisory fees, and then from any class specific
expenses, if applicable. Funds Management has contractually committed to waive
fees and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Fund(s). Net operating expense ratios in effect
for the six-month period ended April 30, 2007, were as follows:
Net Operating Expense Ratios
----------------------------
Fund Administrator Advisor Institutional Investor
- ------------------------------------------------------------------------------------------
DISCOVERY FUND* 1.15% N/A 0.95% 1.38%
- ------------------------------------------------------------------------------------------
ENTERPRISE FUND* 1.15% 1.40% 0.90% 1.57%
- ------------------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND* 1.15% N/A 0.90% 1.31%
- ------------------------------------------------------------------------------------------
OPPORTUNITY FUND* 1.04% 1.29% N/A 1.35%
- ------------------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND* 1.20% N/A 1.00% 1.49%**
- ------------------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND* 1.15% N/A 0.95% 1.49%***
* The Fund's adviser has contractually committed to waive fees through
February 29, 2008.
** Effective March 1, 2007, the expense cap for Small Cap Disciplined Fund -
Investor class changed from 1.61% to 1.49%. The blended expense cap as of
April 30, 2007 is 1.57%.
*** Effective March 1, 2007, the expense cap for Small/Mid Cap Value Fund -
Investor class changed from 1.57% to 1.49%. The blended expense cap as of
April 30, 2007 is 1.54%.
70
NOTES TO FINANCIAL STATEMENTS
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK 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
six-month period ended April 30, 2007, were as follows:
Fund Purchases at Cost Sales Proceeds
- --------------------------------------------------------------------------------
DISCOVERY FUND $ 153,445,634 $ 145,113,162
- --------------------------------------------------------------------------------
ENTERPRISE FUND 136,212,388 115,491,798
- --------------------------------------------------------------------------------
MID CAP DISCIPLINED FUND 671,552,808 392,919,899
- --------------------------------------------------------------------------------
OPPORTUNITY FUND 390,295,534 524,332,933
- --------------------------------------------------------------------------------
SMALL CAP DISCIPLINED FUND 227,233,741 158,654,402
- --------------------------------------------------------------------------------
SMALL/MID CAP VALUE FUND 135,423,537 151,077,817
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 six-month period ended April 30, 2007, there were no borrowings by
any of the Funds under this 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 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.
7. NEW ACCOUNTING PRONOUNCEMENTS
- --------------------------------------------------------------------------------
In June 2006, the Financial Accounting Standards Board ("FASB") issued
FASB Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income
Taxes." This standard defines the threshold for recognizing the benefits of
tax-return positions in the financial statements as "more-likely-than-not" to be
sustained by the taxing authority and requires measurement of a tax position
meeting the more-likely-than-not criterion, based on the largest benefit that is
more than 50 percent likely to be realized. FIN 48 is effective as of the
beginning of the first fiscal year beginning after December 15, 2006 (January 1,
2007 for calendar-year companies), with early application permitted if no
interim financial statements have been issued. In December 2006, the SEC issued
a letter allowing for an implementation delay for funds until the last NAV
calculation in the first required reporting period for fiscal years beginning
after December 15, 2006. As of April 30, 2007, Funds Management does not believe
the impact of the adoption of FIN 48 will be material to the financial
statements.
In September 2006, the FASB issued Statement on Financial Accounting
Standards ("SFAS") No. 157, "Fair Value Measurements." This standard establishes
a single authoritative definition of fair value, sets out a framework for
measuring fair value and requires additional disclosures about fair value
measurements. SFAS No. 157 applies to fair value measurements already required
or permitted by existing standards. SFAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007 and interim
periods within those fiscal years. The changes to current generally accepted
accounting principles from the application of this Statement relate to the
definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of April 30, 2007, Funds
Management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts, however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements on changes in net assets for the period.
71
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS OTHER INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request, by calling 1-800-222-8222, visiting our Web site
at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at
WWW.SEC.GOV. Information regarding how the Funds voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available without charge on the Funds' Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS or by 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
(except Money Market Funds) 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 144 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 Wake Forest University, Calloway None
64 School of Business and
Accountancy - The Thomas Goho
Chair of Finance since January
2006. Associate Professor of
Finance from 1999-2005.
- -----------------------------------------------------------------------------------------------------
Peter G. Gordon Trustee, since 1998 Chairman, CEO and Co-Founder of None
64 (Chairman since 2005) Crystal Geyser Water Company and
(Lead Trustee since President of Crystal Geyser
2001) Roxane Water Company.
- -----------------------------------------------------------------------------------------------------
Richard M. Leach Trustee, since 1987 Retired. Prior thereto, President None
73 of Richard M. Leach Associates (a
financial consulting firm).
- -----------------------------------------------------------------------------------------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk None
54 Management, Wharton School,
University of Pennsylvania.
Director of the Boettner Center
on Pensions and Retirement
Research. 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
55 relations firm of Himle-Horner
and Senior Fellow at the Humphrey
Institute, Minneapolis, Minnesota
(a public policy organization).
72
OTHER INFORMATION WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES (continued)
- -----------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------
Donald C. Willeke Trustee, since 1996 Principal of the law firm of None
66 Willeke & Daniels.
- -----------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE***
- -----------------------------------------------------------------------------------------------------
POSITION HELD AND PRINCIPAL OCCUPATIONS DURING
NAME AND AGE LENGTH OF SERVICE** PAST FIVE YEARS OTHER DIRECTORSHIPS
- -----------------------------------------------------------------------------------------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate None
62 Developer. Prior thereto,
Chairman of Whitepoint Capital,
LLC until 2004.
- -----------------------------------------------------------------------------------------------------
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 Wells None
48 Fargo Bank, N.A. and President of
Wells Fargo Funds Management, LLC
since 2003. Senior Vice President
and Chief Administrative Officer
of Wells Fargo Funds Management,
LLC from 2001 to 2003.
- -----------------------------------------------------------------------------------------------------
C. David Messman Secretary, since 2000; Senior Vice President and None
46 Chief Legal Counsel Secretary of Wells Fargo Funds
since 2003 Management, LLC since 2001. Vice
President and Managing Senior
Counsel of Wells Fargo Bank, N.A.
since 1996.
- -----------------------------------------------------------------------------------------------------
A. Erdem Cimen**** Treasurer, since 2006 Vice President of Financial None
33 Operations for Wells Fargo Funds
Management, LLC since 2006. From
2001 to 2006, Vice President of
Wells Fargo Bank, N.A. and Vice
President of Wells Fargo Bank,
N.A. Auto Finance Group. Vice
President of Portfolio Risk
Management for Wells Fargo Bank,
N.A. Auto Finance Group from 2004
to 2006.
- -----------------------------------------------------------------------------------------------------
Dorothy A. Peters Chief Compliance Chief Compliance Officer of Wells None
45 Officer, since 2004 Fargo Funds Management, LLC since
2004. Chief Compliance Officer
for Wells Fargo Funds Management,
LLC 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.WELLS-FARGO.COM/ADVANTAGEFUNDS.
** Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
*** As of April 30, 2007, 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.
**** As of May 8, 2007, Stephen W. Leonhardt replaced A. Erdem Cimen as
Treasurer of the Funds.
73
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS OTHER INFORMATION
- --------------------------------------------------------------------------------
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUB-ADVISORY
AGREEMENTS:
DISCOVERY FUND, ENTERPRISE FUND, MID CAP DISCIPLINED FUND, OPPORTUNITY FUND,
SMALL CAP DISCIPLINED FUND AND SMALL/MID CAP VALUE FUND
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and sub-advisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will annually review and consider the continuation of
the investment advisory and sub-advisory agreements. In this regard, the Board
reviewed and re-approved, during the six months covered by this report: (i) an
investment advisory agreement with Wells Fargo Funds Management, LLC ("Funds
Management") for the Discovery Fund, Enterprise Fund, Mid Cap Disciplined Fund,
Opportunity Fund, Small Cap Disciplined Fund and Small/Mid Cap Value Fund (the
"Funds"); and (ii) an investment sub-advisory agreement with Wells Capital
Management Incorporated ("Wells Capital Management") for the Funds. The
investment advisory agreement with Funds Management and the investment
sub-advisory agreement with Wells Capital Management are collectively referred
to as the "Advisory Agreements."
More specifically, at a meeting held on March 30, 2007, the Board,
including the Independent Trustees advised by their independent legal counsel,
considered the factors and reached the conclusions described below relating to
the selection of Funds Management and Wells Capital Management and the
continuation of the Advisory Agreements. Prior to the March 30, 2007, meeting,
the Board, including the Independent Trustees, met in person and telephonically
a number of times, both with Funds Management and in private sessions, for
discussions about these continuations and approvals. The Independent Trustees
were assisted in their evaluation of the Advisory Agreements by independent
legal counsel, from whom they received separate legal advice and with whom they
met separately from Funds Management.
NATURE, EXTENT AND QUALITY OF SERVICES
- --------------------------------------------------------------------------------
The Board received and considered various data and information regarding
the nature, extent and quality of services provided to the Funds by Funds
Management and Wells Capital Management under the Advisory Agreements. The Board
also received and considered information provided in response to a detailed set
of requests submitted by the Independent Trustees' independent legal counsel,
including, among other things, information about the background and experience
of senior management and the expertise of, and amount of attention devoted to
the Funds by, investment personnel of Funds Management and Wells Capital
Management. In this regard, the Board reviewed the qualifications, backgrounds
and responsibilities of the portfolio managers primarily responsible for
day-to-day portfolio management services for the Funds.
The Board evaluated the ability of Funds Management and Wells Capital
Management, based on their respective resources, reputations and other
attributes, to attract and retain highly qualified investment professionals,
including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance
records of Funds Management and Wells Capital Management. In addition, the Board
took into account the administrative services provided to the Funds by Funds
Management and its affiliates. In considering these matters, the Board
considered not only the specific information presented in connection with the
meeting, but also the knowledge gained over the course of interacting with Funds
Management about various topics, including Funds Management's oversight of
service providers, such as Wells Capital Management.
Based on the above factors, together with those referenced below, the
Board concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and Wells Capital Management.
FUND PERFORMANCE AND EXPENSES
- --------------------------------------------------------------------------------
The Board considered the performance results for each of the Funds over
various time periods ended December 31, 2006. The Board also considered these
results in comparison to the median performance results of the group of funds
that was determined by Lipper Inc. ("Lipper") to be the most similar to a given
Fund (the "Peer Group") and to the median performance of a broader universe of
relevant funds as determined by Lipper (the "Universe"), as well as to each
Fund's benchmark index. Lipper is an independent provider of investment company
data. The Board was provided with a description of the methodology used by
Lipper to select the mutual funds in each Fund's Peer Group and Universe.
The Board noted that the performance results of each Fund was better than,
or not appreciably below, the median performance of its Peer Group for all time
periods.
The Board received and considered information regarding each Fund's net
operating expense ratio and its various components, including contractual
advisory fees, actual advisory fees, actual non-management fees, Rule 12b-1 and
non-Rule 12b-1 service fees, fee waivers/caps and/or expense reimbursements. The
Board also considered comparisons of these fees to the expense information for
each Fund's Peer Group,
74
OTHER INFORMATION WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
which comparative data was provided by Lipper. The Board noted that each Fund's
net operating expense ratios were lower than, or not appreciably higher than,
each Fund's Peer Group's median net operating expense ratios. The Board also
considered and noted Funds Management recommendation to reduce the net operating
expense ratio of the Enterprise Fund in coming to its conclusion.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUB-ADVISORY FEE RATES
- --------------------------------------------------------------------------------
The Board reviewed and considered the contractual investment advisory fee
rates payable by the Funds to Funds Management for investment advisory services
(the "Advisory Agreement Rates"), both on a stand-alone basis and on a combined
basis with the Funds' administration fee rates. The Board took into account the
separate administrative services covered by the administration fee rates. The
Board also reviewed and considered the contractual investment sub-advisory fee
rates payable by Funds Management to Wells Capital Management for investment
sub-advisory services (the "Sub-Advisory Agreement Rates"). In addition, the
Board reviewed and considered the existing fee waiver/cap arrangements
applicable to the Advisory Agreement Rates and considered the Advisory Agreement
Rates after taking the waivers/caps into account (the "Net Advisory Rates").
The Board received and considered information comparing the Advisory
Agreement Rates and Net Advisory Rates with those of the other funds in each
Fund's Peer Group and certain advisory fee reductions proposed by Funds
Management. The Board noted that the Advisory Agreement Rates and the Net
Advisory Rates for the Funds were lower than, equal to, or not appreciably
higher than, the median rates of each Fund's respective Peer Group. In addition,
the Board concluded that the combined investment advisory/administration fee
rates for these Funds (before and after waivers/caps and/or expense
reimbursements) were reasonable in relation to each Fund's respective Peer
Group, and reasonable in relation to the services provided. The Board also
considered and approved (as applicable) Funds Management's recommendation to
reduce and increase certain of the Funds' net operating expense ratios in coming
to its conclusion.
The Board also reviewed and considered the Sub-Advisory Agreement Rates
and concluded that the Sub-Advisory Agreement Rates were fair and equitable,
based on its consideration of the factors described above.
PROFITABILITY
- --------------------------------------------------------------------------------
The Board received and considered a detailed profitability analysis of
Funds Management based on the Advisory Agreement Rates and Net Advisory Rates,
as well as an analysis of the profitability to other Wells Fargo businesses of
providing services to the Funds. The Board concluded that, in light of the costs
of providing investment management and other services to the Funds, the profits
and other ancillary benefits that Funds Management and its affiliates received
with regard to providing these services to the Funds were not unreasonable. The
Board did not consider a separate profitability analysis of Wells Capital
Management, as its separate profitability from its relationship with the Funds
was not a material factor in determining whether to renew the agreement.
ECONOMIES OF SCALE
- --------------------------------------------------------------------------------
The Board received and considered general information regarding whether
there have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale, and
whether there is the potential for realization of any further economies of scale
for the Funds. The Board also considered information provided by Funds
Management in a special presentation on advisory fee breakpoints at the February
2007 board meeting. The Board acknowledged the inherent limitations of any
analysis of an investment adviser's economies of scale and of any attempt to
correlate breakpoints with such economies, stemming largely from the Board's
understanding that economies of scale are realized, if at all, by an investment
adviser across a variety of products and services, not just with respect to a
single fund. The Board concluded that any actual or potential economies of scale
are, or will be, shared reasonably with Fund shareholders, most particularly
through Advisory Agreement Rate breakpoints and waivers/caps and/or expense
reimbursements applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
- --------------------------------------------------------------------------------
The Board also received and considered information about the nature and
extent of services and fee rates offered by Funds Management to other similarly
situated series of the Trust, and those offered by Wells Capital Management to
other clients. The Board concluded that the Advisory Agreement Rates, the
Sub-Advisory Agreement Rates and the Net Advisory Rates were within a reasonable
range of the fee rates offered to others by Funds Management and Wells Capital
Management, giving effect to differences in services covered by such fee rates.
75
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS OTHER INFORMATION
- --------------------------------------------------------------------------------
OTHER BENEFITS TO FUNDS MANAGEMENT AND WELLS CAPITAL MANAGEMENT
- --------------------------------------------------------------------------------
The Board received and considered information regarding potential
"fall-out" or ancillary benefits received by Funds Management and its affiliates
(including Wells Capital Management) as a result of their relationship with the
Funds. Such benefits could include, among others, benefits directly attributable
to the relationship of Funds Management and Wells Capital Management with the
Funds and benefits potentially derived from an increase in Funds Management's
and Wells Capital Management's business as a result of their relationship with
the Funds (such as the ability to market to shareholders other financial
products offered by Funds Management and its affiliates, including Wells Capital
Management).
The Board also considered the effectiveness of the policies of the Funds
in achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker, the extent to which
efforts are made to recapture commission costs, and the controls applicable to
brokerage allocation procedures. The Board also reviewed Funds Management's and
Wells Capital Management's methods for allocating portfolio investment
opportunities among the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
- --------------------------------------------------------------------------------
The Board also considered the markets for distribution of the Funds,
including the principal channels through which the Funds' shares are offered and
sold. The Board noted that the Funds are part of one of the few fund families
that have both direct-to-fund and intermediary distribution.
As discussed above, the Board reviews detailed materials received from
Funds Management and Wells Capital Management annually as part of the
re-approval process under Section 15(c) of the 1940 Act. The Board also reviews
and assesses the quality of the services that the Funds receive throughout the
year. In this regard, the Board has reviewed reports of Funds Management and
Wells Capital Management at each of its quarterly meetings, which include, among
other things, a portfolio review and fund performance reports. In addition, the
Board confers with portfolio managers at various times throughout the year.
After considering the above-described factors and based on its
deliberations and its evaluation of the information described above, the Board
concluded that approval of the continuation of the Advisory Agreements for the
Funds was in the best interest of the Funds and their shareholders. Accordingly,
the Board unanimously approved the continuation of the Advisory Agreements for
an additional one-year period.
76
LIST OF ABBREVIATIONS WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- --------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities
which may have appeared in this report.
ABAG --Association of Bay Area Governments
ADR --American Depositary Receipt
AMBAC --American Municipal Bond Assurance Corporation
AMT --Alternative Minimum Tax
ARM --Adjustable Rate Mortgages
BART --Bay Area Rapid Transit
CDA --Community Development Authority
CDO --Collateralized Debt Obligation
CDSC --Contingent Deferred Sales Charge
CGIC --Capital Guaranty Insurance Company
CGY --Capital Guaranty Corporation
COP --Certificate of Participation
CP --Commercial Paper
CTF --Common Trust Fund
DW&P --Department of Water & Power
DWR --Department of Water Resources
ECFA --Educational & Cultural Facilities Authority
EDFA --Economic Development Finance Authority
ETET --Eagle Tax-Exempt Trust
FFCB --Federal Farm Credit Bank
FGIC --Financial Guaranty Insurance Corporation
FHA --Federal Housing Authority
FHAG --Federal Housing Agency
FHLB --Federal Home Loan Bank
FHLMC --Federal Home Loan Mortgage Corporation
FNMA --Federal National Mortgage Association
GDR --Global Depositary Receipt
GNMA --Government National Mortgage Association
GO --General Obligation
HCFR --Healthcare Facilities Revenue
HEFA --Health & Educational Facilities Authority
HEFAR --Higher Education Facilities Authority Revenue
HFA --Housing Finance Authority
HFFA --Health Facilities Financing Authority
IDA --Industrial Development Authority
IDAG --Industrial Development Agency
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
MTN --Medium Term Note
MUD --Municipal Utility District
PCFA --Pollution Control Finance Authority
PCR --Pollution Control Revenue
PFA --Public Finance Authority
PFFA --Public Facilities Financing Authority
plc --Public Limited Company
PSFG --Public School Fund Guaranty
R&D --Research & Development
RDA --Redevelopment Authority
RDFA --Redevelopment Finance Authority
REITS --Real Estate Investment Trusts
SFHR --Single Family Housing Revenue
SFMR --Single Family Mortgage Revenue
SLMA --Student Loan Marketing Association
TBA --To Be Announced
TRAN --Tax Revenue Anticipation Notes
USD --Unified School District
XLCA --XL Capital Assurance
77
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
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF WELLS FARGO ADVANTAGE FUNDS. IF THIS
REPORT IS USED FOR PROMOTIONAL PURPOSES, DISTRIBUTION OF THE REPORT MUST BE
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR A PROSPECTUS CONTAINING
MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-222-8222
OR VISIT THE FUNDS' WEB SITE AT WWW.WELLSFARGO.COM/ADVANTAGEFUNDS. PLEASE
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
INVESTMENT CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION ABOUT WELLS
FARGO ADVANTAGE FUNDS CAN BE FOUND IN THE CURRENT PROSPECTUS. READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates of Wells Fargo & Company provide
subadvisory and other services for the Funds. The Funds are distributed by WELLS
FARGO FUNDS DISTRIBUTOR, LLC, Member NASD/SIPC, an affiliate of Wells Fargo &
Company.
-----------------------------------------------------
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
-----------------------------------------------------
- --------------------------------------------------------------------------------
(C) 2007 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
104314 06-07
SMCNLD/SAR123 04-07
ITEM 2. CODE OF ETHICS
=======================
Not required in this filing
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
=========================================
Not required in this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
==============================================
Not required in this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
===============================================
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
===============================
The Schedule of Investments is included as part of the report to shareholders
filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
===============================================================
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
=============================================================================
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT
INVESTMENT COMPANY AND AFFILIATED PURCHASES
===================================================================
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
============================================================
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES
=================================
(a) 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.
(b) There were no changes in the Trust's internal controls over financial
reporting (as defined in rule 30a-3(d) udner the Investment Company Act) that
occurred during the second quarter of the period covered by this report that has
materially affected or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS
=================
(a)(1) Not required in this filing.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Wells Fargo Funds Trust
By: /s/ Karla M. Rabusch
Karla M. Rabusch
President
Date: June 21, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
date indicated.
By: /s/ Karla M. Rabusch
Karla M. Rabusch
President
Date: June 21, 2007
By: s/ Stephen W. Leonhardt
Stephen W. Leonhardt
Treasurer
Date: June 21, 2007
CERTIFICATION
I, Karla M. Rabusch, certify that:
1.I have reviewed this report on Form N-CSR of Wells Fargo Advantage Specialized
Financial Services Fund, Wells Fargo Advantage Specialized Health Sciences Fund,
Wells Fargo Advantage Specialized Technology Fund, 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 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) and internal control
over financial reporting (as defined in Rule 30a-3(d) 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 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 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 and material weaknesses 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, 2007
/s/ Karla M. Rabusch
- -----------------------
Karla M. Rabusch
President
Wells Fargo Funds Trust
Exhibit 99.CERT
CERTIFICATION
I, Stephen W. Leonhardt, certify that:
1. I have reviewed this report on Form N-CSR of Wells Fargo Advantage
Specialized Financial Services Fund, Wells Fargo Advantage Specialized Health
Sciences Fund, Wells Fargo Advantage Specialized Technology Fund, 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 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) and internal control
over financial reporting (as defined in Rule 30a-3(d) 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 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 and material weaknesses 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, 2007
/s/ Stephen W. Leonhardt
- ------------------------
Stephen W. Leonhardt
Treasurer
Wells Fargo Funds Trust
Exhibit 99.CERT
SECTION 906 CERTIFICATION
-------------------------
Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Wells Fargo
Funds Trust (the "Trust"), hereby certifies, to the best of her knowledge, that
the Trust's report on Form N-CSR for the period ended April 30, 2007 (the
"Report") fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934 and that the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Trust.
Date:June 21, 2007
/s/ Karla M. Rabusch
Karla M. Rabusch
President
Wells Fargo Funds Trust
SECTION 906 CERTIFICATION
-------------------------
Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Wells Fargo
Funds Trust (the "Trust"), hereby certifies, to the best of his knowledge, that
the Trust's report on Form N-CSR for the period ended April 30, 2007 (the
"Report") fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934 and that the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Trust.
Date:June 21, 2007
/s/ Stephen W. Leonhardt
Stephen W. Leonhardt
Treasurer
Wells Fargo Funds Trust