UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo 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, 2008
Date of reporting period: April 30, 2008
ITEM 1. REPORT TO SHAREHOLDERS
(WELLS FARGO LOGO)
ADVANTAGE FUNDS
(GRAPHIC)
Semi-Annual Report
April 30, 2008
WELLS FARGO ADVANTAGE SPECIALTY FUNDS(SM)
- - SPECIALIZED FINANCIAL SERVICES FUND
- - SPECIALIZED TECHNOLOGY FUND
WANT TO RECEIVE YOUR ANNUAL AND SEMI-ANNUAL REPORTS FASTER?
Sign up for e-delivery at
www.wellsfargo.com/advantagefunds,
Keyword: eDocs.
Contents
LETTER TO SHAREHOLDERS .................................................... 2
PERFORMANCE HIGHLIGHTS
Specialized Financial Services Fund ....................................... 4
Specialized Technology Fund ............................................... 6
FUND EXPENSES ............................................................. 8
PORTFOLIO OF INVESTMENTS
Specialized Financial Services Fund ....................................... 10
Specialized Technology Fund ............................................... 14
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ...................................... 18
Statements of Operations .................................................. 19
Statements of Changes in Net Assets ....................................... 20
Financial Highlights ...................................................... 22
NOTES TO FINANCIAL STATEMENTS ............................................. 26
OTHER INFORMATION ......................................................... 34
LIST OF ABBREVIATIONS ..................................................... 39
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(GRAPHIC)
WELLS FARGO INVESTMENT HISTORY
1971 INTRODUCED ONE OF THE FIRST INSTITUTIONAL INDEX FUNDS.
1978 ONE OF THE FIRST FIRMS TO APPLY ASSET ALLOCATION THEORY TO INVESTMENT
PORTFOLIO MANAGEMENT.
1985 ONE OF THE FIRST FIRMS TO CREATE A THREE-WAY ASSET ALLOCATION FUND THAT
"TILTS" INVESTMENTS TOWARD PORTIONS OF THE MARKET THAT OUR PROPRIETARY MODELS
INDICATE WILL PERFORM BETTER.
1994 INTRODUCED TARGET DATE FUNDS THAT AUTOMATICALLY REALLOCATE THE ASSET MIX
OVER SPECIFIC TIME HORIZONS.
1997 WELLS FARGO LAUNCHED THE WEALTHBUILDER PORTFOLIOS, A UNIQUE "FUND OF FUNDS"
THAT USES FLEXIBLE ASSET ALLOCATION STRATEGIES TO SHIFT ASSETS.
1999 REORGANIZED THE NORWEST ADVANTAGE FUNDS(R)AND STAGECOACH FUNDS(R)INTO THE
WELLS FARGO FUNDS(R).
2003 EXPANDED FIXED-INCOME, SMALL CAP, AND EMERGING MARKETS LINEUP FROM
MONTGOMERY ASSET MANAGEMENT, LLC.
2004 ADDED ADDITIONAL LARGE CAP AND MID CAP FUNDS TO THE LINEUP BY ADOPTING THE
COOKE & BIELER VALUE FUNDS.
2005 WELLS FARGO FUNDS MERGED WITH STRONG FUNDS TO BECOME WELLS FARGO ADVANTAGE
FUNDS, FORMING A FUND FAMILY OF OVER 120 FUNDS AND PLACING IT AMONG THE TOP 20
MUTUAL FUND FAMILIES IN THE UNITED STATES.
2006 ENHANCED AND RENAMED THE WELLS FARGO ADVANTAGE OUTLOOK FUNDS(SM) TO THE
WELLS FARGO ADVANTAGE DOW JONES TARGET DATE FUNDS(SM), WHICH SEEK TO REPLICATE
RETURNS OF THE APPROPRIATE DOW JONES TARGET DATE INDEXES, THE FIRST LIFE CYCLE
INDEXES IN THE INVESTMENT INDUSTRY.
WELLS FARGO ADVANTAGE FUNDS(R)
Integrity. Expertise. Solutions.
GUIDED BY A DISTINGUISHED HERITAGE. Since 1852 Wells Fargo has distinguished
itself by safely delivering people and their valuables to distant destinations.
To meet the needs of a vibrant, expanding nation, the company successfully
forged partnerships with local specialists who knew the terrain.
Although much has changed since then, WELLS FARGO ADVANTAGE FUNDS continues to
put the same time and effort into selecting independent portfolio management
teams who oversee our Funds. It's to integrity and expertise and to providing
solutions that help you reach your destination.
INDEPENDENT THINKING. With a primary focus on delivering long-term performance
and risk management, our approach offers investors access to the strategic
thinking of independent investment teams from 15 different management firms.
While each of our teams concentrates on a specific strategy, collectively they
provide in-depth knowledge and insight across distinct investment styles.
TIME-TESTED APPROACH. Our teams are chosen for their expertise in particular
investment styles and for their consistent, repeatable processes. All remain
independent and free to concentrate solely on managing money and producing
results. Our strict adherence to this approach provides a consistent focus on
long-term results and allows investors to tap into the expertise of leading
institutional investment managers to create fully diversified portfolios.
SOLUTIONS FOR EVERY STAGE. WELLS FARGO ADVANTAGE FUNDS provides investors with
strategic investment solutions that help navigate the complex and ever-changing
investment landscape. Our diverse family of mutual funds includes more than 120
Funds that cover a broad spectrum of investment styles and asset classes, and
each Fund has its own disciplined approach to investing.
NOT PART OF THE SEMI-ANNUAL REPORT.
WELLS FARGO ADVANTAGE FUNDS OFFERS MORE THAN 120 MUTUAL FUNDS ACROSS A WIDE
RANGE OF ASSET CLASSES, REPRESENTING OVER $156 BILLION IN ASSETS UNDER
MANAGEMENT, AS OF APRIL 30, 2008.
EQUITY FUNDS
Asia Pacific Fund Equity Value Fund Opportunity Fund
C&B Large Cap Value Fund Growth and Income Fund Overseas Fund
C&B Mid Cap Value Fund Growth Fund Small Cap Disciplined Fund
Capital Growth Fund Growth Equity Fund Small Cap Growth Fund
Common Stock Fund Index Fund Small Cap Opportunities Fund
Discovery Fund International Core Fund Small Cap Value Fund
Diversified Equity Fund International Equity Fund Small Company Growth Fund
Diversified Small Cap Fund International Value Fund Small Company Value Fund
Emerging Growth Fund Large Cap Appreciation Fund Small/Mid Cap Value Fund
Emerging Markets Equity Fund Large Cap Growth Fund Specialized Financial Services Fund
Endeavor Large Cap Fund Large Company Core Fund Specialized Technology Fund
Endeavor Select Fund Large Company Growth Fund Strategic Small Cap Value Fund
Enterprise Fund Large Company Value Fund U.S. Value Fund
Equity Income Fund Mid Cap Disciplined Fund Value Fund
Equity Index Fund Mid Cap Growth Fund
BOND FUNDS
California Limited-Term Tax-Free Fund Inflation-Protected Bond Fund Short-Term High Yield Bond Fund
California Tax-Free Fund Intermediate Government Income Fund(1) Short-Term Municipal Bond Fund
Colorado Tax-Free Fund Intermediate Tax-Free Fund Stable Income Fund
Corporate Bond Fund Minnesota Tax-Free Fund Strategic Income Fund
Diversified Bond Fund Municipal Bond Fund Total Return Bond Fund
Government Securities Fund(1) National Limited-Term Tax-Free Fund Ultra Short-Term Income Fund
High Income Fund National Tax-Free Fund Ultra Short-Term Municipal Income Fund
High Yield Bond Fund Short Duration Government Bond Fund(1) Ultra-Short Duration Bond Fund
Income Plus Fund Short-Term Bond Fund Wisconsin Tax-Free Fund
ASSET ALLOCATION FUNDS
Aggressive Allocation Fund WealthBuilder Conservative Allocation Portfolio Target 2020 Fund(2)
Asset Allocation Fund WealthBuilder Equity Portfolio Target 2025 Fund(2)
Balanced Fund WealthBuilder Growth Allocation Portfolio Target 2030 Fund(2)
Conservative Allocation Fund WealthBuilder Growth Balanced Portfolio Target 2035 Fund(2)
Growth Balanced Fund WealthBuilder Moderate Balanced Portfolio Target 2040 Fund(2)
Moderate Balanced Fund WealthBuilder Tactical Equity Portfolio Target 2045 Fund(2)
Life Stage-Aggressive Portfolio Target Today Fund(2) Target 2050 Fund(2)
Life Stage-Conservative Portfolio Target 2010 Fund(2)
Life Stage-Moderate Portfolio Target 2015 Fund(2)
MONEY MARKET FUNDS
100% Treasury Money Market Fund(1) Heritage Money Market Fund National Tax-Free Money Market Fund
California Tax-Free Money Market Fund Minnesota Money Market Fund National Tax-Free Money Market Trust
California Tax-Free Money Market Trust Money Market Fund Overland Express Sweep Fund
Cash Investment Money Market Fund Money Market Trust Prime Investment Money Market Fund
Government Money Market Fund(1) Municipal Money Market Fund Treasury Plus Money Market Fund(1)
VARIABLE TRUST FUNDS(3)
VT Asset Allocation Fund VT International Core Fund VT Opportunity Fund
VT C&B Large Cap Value Fund VT Large Company Core Fund VT Small Cap Growth Fund
VT Discovery Fund VT Large Company Growth Fund VT Small/Mid Cap Value Fund
VT Equity Income Fund VT Money Market Fund VT Total Return Bond Fund
AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE WELLS
FARGO ADVANTAGE MONEY MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT
AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN A MONEY MARKET
FUND.
(1) The U.S. Government guarantee applies to certain of the underlying
securities and NOT to shares of the Fund.
(2) The full name of this Fund series is the WELLS FARGO ADVANTAGE DOW JONES
TARGET DATE FUNDS(SM).
(3) The Variable Trust Funds are generally available only through insurance
company variable contracts.
NOT PART OF THE SEMI-ANNUAL REPORT.
2 Wells Fargo Advantage Specialty Funds
Letter to Shareholders
(PHOTO OF KARLA M. RABUSCH)
KARLA M. RABUSCH,
President,
WELL FARGO ADVANTAGE FUNDS
FALLING PRICES OF NEW AND EXISTING HOMES ESPECIALLY AFFECTED SUBPRIME BORROWERS
WHO FALTERED WHEN EASY ACCESS TO CREDIT ALL BUT DISAPPEARED FOR THEM AND
MARKET-VALUE EQUITY ON THEIR HOMES DECLINED.
Dear Valued Shareholder,
We're pleased to offer you this semi-annual report for the Wells Fargo Advantage
Specialty Funds that covers the six-month period that ended April 30, 2008.
During the period, the economy struggled to absorb slower growth, high energy
prices, a continuing correction in the housing market, and tighter lending
practices that presented financial challenges to businesses and consumers.
Falling prices of new and existing homes especially affected subprime borrowers
who faltered when easy access to credit all but disappeared for them and
market-value equity on their homes declined. The price correction in the market
value of homes prevented many struggling borrowers from paying off their full
mortgage balances by selling their homes. Housing market woes also had a ripple
effect as financial markets began to assess the full impact of the subprime
loans that had been packaged and sold both in the United States and abroad. The
rapid collapse of investment bank Bear Stearns, due to high write-offs in its
mortgage-related assets, highlighted some of the more significant risks within
the market.
THE FED RESPONDED IN MANY WAYS.
First, the Fed lowered the federal funds rate (the rate at which member banks
borrow money from each other) by 250 basis points (100 basis points equals
1.00%), with the latest rate cut during the period occurring on April 30.
Second, it lowered the discount rate (the rate at which banks borrow money
directly from the Fed) by 275 basis points. And third, it agreed to make the
discount window available to nonbank dealers and to lend to banks for
longer-than-normal periods of time to help ease some of the constraints on
liquidity. In addition, the Fed launched several other new programs to provide
liquidity to financial institutions.
INVESTORS SOUGHT RELATIVE SAFETY IN MONEY MARKET FUNDS AND IN THE U.S. TREASURY
MARKET.
During the six-month period, the Lehman Brothers U.S. Treasury Index1 returned
5.87%, compared to 4.08% for the broad bond market, as measured by the Lehman
Brothers U.S. Aggregate Index(2). Corporate and high-yield bonds trailed as
investors worried about the effect of a slowing economy on potential future
default rates. In the international credit markets, Europe and Britain
experienced some of the same concerns over liquidity that were felt in the U.S.
credit markets, which resulted in tighter lending practices overseas.
- -----------
(1) Lehman Brothers U.S. Treasury Index includes public obligations of the U.S.
Treasury. It includes only notes and bonds with a minimum outstanding
principal amount of $50 million and a minimum maturity of one year. You
cannot invest directly in an index.
(2) The Lehman Brothers U.S. Aggregate Index includes bonds from the Treasury,
government-related, corporate, agency, mortgage-backed securities, and
asset-backed securities sectors. You cannot invest directly in an index.
Letter to Shareholders
Wells Fargo Advantage Specialty Funds 3
THE STOCK MARKET STRUGGLED IN MOST AREAS.
The S&P 500 Index declined 9.64% for the six-month period. Within the S&P 500
Index, value stocks underperformed growth stocks, largely because of continued
weakness in financials as the credit fallout from the housing crisis continued
to work its way through the system. The S&P Financial Index(3) declined 20.03%
for the period. Technology stocks also posted poor returns, partly on growing
evidence of weaker consumer technology spending in both the United States and
Europe. Energy stocks were one of the few bright spots in the market, as oil
prices continued to rise.
PLANNING AHEAD
The continued uncertainty surrounding the housing market, liquidity, and
inflation supports our belief that successful investing includes a balanced
approach of owning a diversified portfolio while keeping a long-term
perspective. While diversification may not prevent losses in a downturn, it may
help to reduce them and provide you with one way of managing risk. Our diverse
family of mutual funds may also help. We offer more than 120 Funds that cover a
broad spectrum of investment styles and asset classes. 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 investment teams 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
ENERGY STOCKS WERE ONE OF THE FEW BRIGHT SPOTS IN THE MARKET, AS OIL PRICES
CONTINUED TO RISE.
THE CONTINUED UNCERTAINTY SURROUNDING THE HOUSING MARKET, LIQUIDITY, AND
INFLATION SUPPORTS OUR BELIEF THAT SUCCESSFUL INVESTING INCLUDES A BALANCED
APPROACH OF OWNING A DIVERSIFIED PORTFOLIO WHILE KEEPING A LONG-TERM
PERSPECTIVE.
- ----------
(3) 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.
4 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
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO FUND MANAGERS
Allen J. Ayvazian
Allen Wisniewski, CFA
FUND INCEPTION
July 2, 1962
INDUSTRY DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Security & Commodity Brokers, Dealers,
Exchanges & Services (16%)
Depository Institutions (47%)
Electronic & Other Electrical Equipment &
Components, Except Computer Equipment (1%)
Holding & Other Investment Offices (3%)
Insurance Carriers (23%)
Non-Depository Credit Institutions (10%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
JPMorgan Chase & Company 9.65%
Bank of America Corporation 8.92%
Citigroup Incorporated 6.20%
Goldman Sachs Group Incorporated 4.65%
American International Group Incorporated 4.15%
Bank of New York Mellon Corporation 3.78%
The Travelers Companies Incorporated 3.76%
American Express Company 3.66%
Prudential Financial Incorporated 3.64%
US Bancorp 3.62%
- ----------
(1) Industry distribution is subject to change. Cash and cash equivalents are
not reflected in the calculation of industry distribution.
(2) The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Performance Highlights
Wells Fargo Advantage Specialty Funds 5
WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL SERVICES FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
Specialized Financial -------------------------------------- -------------------------------------- -----------------
Services Fund 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------------- --------- ------- ------ ------- --------- ------- ------ ------- -------- ------
Class A (SIFEX) (24.74) (29.12) 3.19 1.16 (20.15) (24.80) 4.42 1.76 1.59% 1.35%
Class B (SIFBX)** (25.51) (30.45) 3.24 0.88 (20.51) (25.45) 3.59 0.88 2.34% 2.10%
Class C (SIFCX) (21.40) (26.54) 3.58 0.85 (20.40) (25.54) 3.58 0.85 2.34% 2.10%
BENCHMARKS
S&P Financial Index(6) (20.03) (26.28) 5.25 3.16
S&P 500 Index(7) (9.64) (4.68) 10.61 3.89
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGES ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD.
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 smaller company securities
risk. Consult the Fund's prospectus for additional information on these and
other risks
- ----------
(3) 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.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) 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.
(7) 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 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
Wells Fargo Funds Management, LLC
SUBADVISER
RCM Capital Management, LLC
PORTFOLIO MANAGERS
Huachen Chen, CFA
Walter C. Price, Jr., CFA
FUND INCEPTION
September 18, 2000
INDUSTRY DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Business Services (34%)
Chemicals & Allied Products (1%)
Communications (5%)
Electric, Gas & Sanitary Services (4%)
Electronics & Other Electrical Equipment &
Components, Except Computer Equipment (29%)
Industrial & Commercial Machinery &
Computer Equipment (24%)
Stone, Clay, Glass & Concrete Products (3%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Apple Incorporated 7.32%
International Business Machines 6.10%
QUALCOMM Incorporated 6.07%
Google Incorporated Class A 5.51%
Salesforce.com Incorporated 4.89%
Intel Corporation 4.54%
Cisco Systems Incorporated 4.09%
Research In Motion Limited 4.00%
Microsoft Corporation 3.69%
First Solar Incorporated 3.39%
- ----------
(1) Industry distribution is subject to change. Cash and cash equivalents are
not reflected in the calculation of industry distribution.
(2) The Ten Largest Equity Holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Specialty Funds 7
Performance Highlights
WELLS FARGO ADVANTAGE SPECIALIZED TECHNOLOGY FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
Life of Life of
SPECIALIZED TECHNOLOGY FUND 6 Months* 1 Year 5 Year Fund 6 Months* 1 Year 5 Year Fund Gross(4) Net(5)
- ------------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFSTX) (20.34) 5.92 17.95 (6.01) (15.45) 12.39 19.38 (5.27) 1.80% 1.75%
Class B (WFTBX)** (20.77) 6.61 18.34 (5.99) (15.77) 11.61 18.54 (5.99) 2.55% 2.50%
Class C (WFTCX) (16.68) 10.63 18.50 (6.01) (15.68) 11.63 18.50 (6.01) 2.55% 2.50%
Class Z (WFTZX) (15.40) 12.27 19.20 (5.42) 1.97% 1.87%
BENCHMARKS
Goldman Sachs Technology Index(6) (15.07) 1.07 10.85 (9.07)
S&P 500 Index(7) (9.64) (4.68) 10.61 1.17
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGES ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT
DEFERRED SALES CHARGE.
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, smaller company securities risk, and technology
sector risk. Consult the Fund's prospectus for additional information on these
and other risks.
- ----------
(3) 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.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Goldman Sachs Technology Index is a modified capitalization-weighted
index of selected technology stocks. You cannot invest directly in an
Index.
(7) 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.
8 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, from November 1, 2007
to April 30, 2008.
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the "Actual" line under the heading entitled "Expenses Paid During Period"
for your applicable class of shares to estimate the expenses you paid on your
account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE SPECIALIZED FINANCIAL SERVICES FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
- --------------------------------------------------------- ------------- ------------- ----------- -------------
Wells Fargo Advantage Specialized Financial Services Fund
CLASS A
Actual $1,000.00 $ 798.50 $ 6.04 1.35%
Hypothetical (5% return before expenses) $1,000.00 $1,018.15 $ 6.77 1.35%
CLASS B
Actual $1,000.00 $ 794.90 $ 9.37 2.10%
Hypothetical (5% return before expenses) $1,000.00 $1,014.42 $10.52 2.10%
CLASS C
Actual $1,000.00 $ 796.00 $ 9.38 2.10%
Hypothetical (5% return before expenses) $1,000.00 $1,014.42 $10.52 2.10%
Wells Fargo Advantage Specialty Funds 9
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE SPECIALIZED TECHNOLOGY FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
- --------------------------------------------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $ 845.50 $ 8.03 1.75%
Hypothetical (5% return before expenses) $1,000.00 $1,016.16 $ 8.77 1.75%
CLASS B
Actual $1,000.00 $ 842.30 $11.45 2.50%
Hypothetical (5% return before expenses) $1,000.00 $1,012.43 $12.51 2.50%
CLASS C
Actual $1,000.00 $ 843.20 $11.46 2.50%
Hypothetical (5% return before expenses) $1,000.00 $1,012.43 $12.51 2.50%
CLASS Z
Actual $1,000.00 $ 846.00 $ 8.67 1.89%
Hypothetical (5% return before expenses) $1,000.00 $1,015.47 $ 9.47 1.89%
- ----------
(1) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in
the most recent fiscal half-year divided by the number of days in the
fiscal year (to reflect the one-half year period).
10 Wells Fargo Advantage Specialty Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED FINANCIAL SERVICES FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
COMMON STOCKS: 99.47%
DEPOSITORY INSTITUTIONS: 46.37%
460,262 BANK OF AMERICA CORPORATION<< $ 17,278,235
168,278 BANK OF NEW YORK MELLON CORPORATION 7,325,141
475,300 CITIGROUP INCORPORATED 12,010,831
45,800 CITY NATIONAL CORPORATION 2,222,216
28,242 CULLEN FROST BANKERS INCORPORATED 1,576,468
57,800 INDEPENDENT BANK CORPORATION 1,689,494
392,000 JPMORGAN CHASE & COMPANY 18,678,800
62,400 NORTHERN TRUST CORPORATION 4,624,464
82,800 PNC FINANCIAL SERVICES GROUP 5,742,180
70,000 STATE STREET CORPORATION 5,049,800
37,700 SUNTRUST BANKS INCORPORATED<< 2,101,775
206,800 US BANCORP 7,008,452
118,046 WACHOVIA CORPORATION 3,441,041
32,500 ZIONS BANCORPORATION 1,506,375
90,255,272
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 1.01%
60,000 GENERAL ELECTRIC COMPANY 1,962,000
------------
HOLDING & OTHER INVESTMENT OFFICES: 2.57%
51,000 PROLOGIS<< 3,193,110
20,000 PUBLIC STORAGE INCORPORATED<< 1,814,000
5,007,110
------------
INSURANCE CARRIERS: 23.42%
49,200 ACE LIMITED 2,966,268
174,000 AMERICAN INTERNATIONAL GROUP INCORPORATED 8,038,800
140,000 FIDELITY NATIONAL TITLE GROUP INCORPORATED<< 2,238,600
47,500 GENWORTH FINANCIAL INCORPORATED 1,095,350
94,000 HARTFORD FINANCIAL SERVICES GROUP INCORPORATED 6,699,380
76,000 ING GROUP NV ADR<< 2,887,240
57,000 MANULIFE FINANCIAL CORPORATION<< 2,232,120
73,000 MAX CAPITAL GROUP LIMITED 1,708,930
23,700 METLIFE INCORPORATED<< 1,442,145
93,000 PRUDENTIAL FINANCIAL INCORPORATED<< 7,041,030
38,000 RENAISSANCERE HOLDINGS LIMITED 1,954,720
144,400 THE TRAVELERS COMPANIES INCORPORATED 7,277,760
45,582,343
------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 10.11%
50,000 AMERICAN CAPITAL STRATEGIES LIMITED<< 1,587,500
147,500 AMERICAN EXPRESS COMPANY 7,082,950
79,000 CAPITAL ONE FINANCIAL CORPORATION 4,187,000
114,000 FANNIE MAE 3,226,200
57,500 FREDDIE MAC 1,432,325
127,000 PEOPLE'S UNITED FINANCIAL INCORPORATED 2,155,190
19,671,165
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 15.99%
38,500 ALLIANCE BERNSTEIN HOLDING LP<< 2,387,770
12,700 BEAR STEARNS COMPANIES INCORPORATED<< 136,271
132,741 CHARLES SCHWAB CORPORATION 2,867,206
112,000 FEDERATED INVESTORS INCORPORATED CLASS B 3,749,760
Wells Fargo Advantage Specialty Funds 11
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED FINANCIAL SERVICES FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (continued)
47,000 GOLDMAN SACHS GROUP INCORPORATED $ 8,994,390
87,200 INVESCO LIMITED 2,236,680
22,200 LEHMAN BROTHERS HOLDINGS INCORPORATED<< 982,128
94,300 MERRILL LYNCH & COMPANY INCORPORATED 4,698,969
104,200 MORGAN STANLEY 5,064,121
31,117,295
------------
TOTAL COMMON STOCKS (COST $175,406,786) 193,595,185
------------
COLLATERAL FOR SECURITIES LENDING: 9.64%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.56%
158,515 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS
PORTFOLIO 158,515
193,846 BLACKROCK TEMP FUND #24 MONEY MARKET FUND 193,846
410,759 DAILY ASSETS FUND INSTITUTIONAL 410,759
340,775 DREYFUS CASH MANAGEMENT FUND 340,775
1,103,895
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 9.08%
$ 183,109 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 183,025
63,074 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 62,976
197,956 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 197,605
148,467 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 148,420
117,289 APRECO LLC++ 2.94 05/28/2008 117,033
415,213 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 415,213
98,978 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 98,883
123,723 BANCO SANTANDER TOTTA LOAN ++ +/- 2.73 10/15/2008 123,612
338,668 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $338,687) 2.00 05/01/2008 338,668
377,691 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $377,717) 2.47 05/01/2008 377,691
123,723 BANK OF IRELAND ++ +/- 3.06 10/14/2008 123,658
197,956 BANK OF SCOTLAND PLC 2.80 05/29/2008 197,527
1,328,449 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $1,328,523) 2.00 05/01/2008 1,328,449
98,978 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 98,772
101,675 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 101,450
98,978 CHARIOT FUNDING LLC++ 2.70 05/14/2008 98,882
98,978 CHARIOT FUNDING LLC++ 2.76 05/29/2008 98,766
262,510 CHEYNE FINANCE LLC++ +/- @@(a)(i) 6.40 02/25/2008 189,007
201,891 CHEYNE FINANCE LLC++ +/- @@(a)(i) 6.48 05/19/2008 145,362
63,074 CIESCO LLC++ 2.90 05/21/2008 62,977
145,993 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 145,622
495,385 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 495,385
371,168 CULLINAN FINANCE CORPORATION ++ +/- 2.51 08/04/2008 370,337
1,328,449 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,328,523) 2.00 05/01/2008 1,328,449
197,956 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 197,616
347,413 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 347,301
98,978 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 98,896
12 Wells Fargo Advantage Specialty Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED FINANCIAL SERVICES FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 98,978 FALCON ASSET SECURITIZATION CORPORATION++ 2.76% 05/28/2008 $ 98,774
494,891 FIVE FINANCE INCORPORATED++ 2.66 07/09/2008 493,058
395,912 GALLEON CAPITAL LLC++ 2.90 05/21/2008 395,275
410,264 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 410,099
494,891 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 494,188
321,679 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(i) 2.79 10/16/2008 321,679
222,701 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 222,567
357,034 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 356,895
247,445 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 247,445
247,445 LINKS FINANCE LLC ++ +/- 2.52 08/15/2008 246,157
395,912 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $395,938) 2.40 05/01/2008 395,912
104,140 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 104,018
98,978 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 98,771
22,889 MORGAN STANLEY+/- 2.84 10/15/2008 22,870
224,359 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $224,371) 2.00 05/01/2008 224,359
452,825 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $452,855) 2.41 05/01/2008 452,825
197,956 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 197,719
247,445 NORTHERN ROCK PLC++ +/- 2.79 10/03/2008 246,123
227,650 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 227,632
144,280 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 143,961
236,310 PICAROS FUNDING LLC++ 2.60 05/06/2008 236,225
98,978 PRUDENTIAL PLC++ 2.88 05/28/2008 98,765
395,912 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 395,881
202,163 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 201,846
197,956 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 197,596
69,285 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 69,253
123,723 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 123,527
98,978 SLM CORPORATION++ 2.73 05/12/2008 98,927
514,686 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 514,485
247,445 STANFIELD VICTORIA FUNDING LLC ++ +/-@@(A)(i) 5.47 02/15/2008 220,622
153,416 STANFIELD VICTORIA FUNDING LLC ++ +/-@@(A)(i) 5.27 04/03/2008 136,786
98,978 SWEDBANK MORTGAGE AB 2.95 05/27/2008 98,768
173,212 THAMES ASSET GLOBAL SECURITIZATION #1
INCORPORATED++ 2.85 05/09/2008 173,102
225,660 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 225,397
123,723 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 123,437
742,336 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 741,938
123,723 UNICREDITO ITALIANO BANK (IRELAND) ++ +/- 2.74 10/14/2008 123,646
123,723 UNICREDITO ITALIANO BANK (IRELAND) SERIES 2.76 10/08/2008 123,657
212,803 VICTORIA FINANCE LLC ++ +/- @@ (a)(i) 2.60 07/28/2008 189,735
123,723 VICTORIA FINANCE LLC ++ +/- @@ (a)(i) 2.84 08/07/2008 110,311
247,445 WHITE PINE FINANCE LLC ++ +/- @@ (a)(i) 5.43 02/22/2008 226,907
346,423 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 346,313
17,669,033
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $19,080,355) 18,772,928
------------
Wells Fargo Advantage Specialty Funds 13
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED FINANCIAL SERVICES FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
SHORT-TERM INVESTMENTS: 0.69%
1,340,293 Wells Fargo Advantage Money Market Trust~++ $ 1,340,293
------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,340,293) 1,340,293
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $195,827,434)* 109.80% $213,708,406
Other Assets and Liabilities, Net (9.80) (19,067,792)
------ ------------
TOTAL NET ASSETS 100.00% $194,640,614
------ ------------
- ----------
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144 or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(i) Illiquid security.
~ 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.
++ Short-term security of an affiliate of the Fund with a cost of $1,340,293.
* 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 Wells Fargo Advantage Specialty Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED TECHNOLOGY FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
COMMON STOCKS: 90.52%
BUSINESS SERVICES: 30.65%
219,947 ACTIVISION INCORPORATED+ $ 5,949,566
11,960 BAIDU.COM INCORPORATED ADR+<< 4,372,576
130,225 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 4,199,756
20,946 CTRIP.COM INTERNATIONAL ADR 1,299,909
105,065 EBAY INCORPORATED+ 3,287,484
65,980 ELECTRONIC ARTS INCORPORATED+ 3,395,991
76,470 FOCUS MEDIA HOLDING LIMITED+<< 2,820,978
20,285 GOOGLE INCORPORATED CLASS A+ 11,649,473
113,776 JUNIPER NETWORKS INCORPORATED+ 3,142,493
8,633 LONGTOP FINANCIAL TECHNOLOGIES LIMITED ADR+<< 172,228
150,775 MCAFEE INCORPORATED+ 5,013,269
273,745 MICROSOFT CORPORATION 7,807,207
250,333 ORACLE CORPORATION+ 5,219,443
154,921 SALESFORCE.COM INCORPORATED+<< 10,337,878
106,355 YAHOO! INCORPORATED+ 2,915,191
71,583,442
------------
CHEMICALS & ALLIED PRODUCTS: 0.94%
19,210 MONSANTO COMPANY 2,190,324
------------
COMMUNICATIONS: 4.46%
74,055 AMERICAN TOWER CORPORATION CLASS A+ 3,215,468
94,725 COMCAST CORPORATION CLASS A 1,946,599
4,115 TELEFONICA SA ADR<< 355,454
739,044 TENCENT HOLDINGS LIMITED 4,902,841
10,420,362
------------
ELECTRIC, GAS & SANITARY SERVICES: 3.44%
24,585 FIRST SOLAR INCORPORATED+ 7,178,574
11,820 RENEWABLE ENERGY CORPORATION AS+ 404,719
5,160 SUNPOWER CORPORATION+<< 450,313
8,033,606
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 26.64%
195,030 ABB LIMITED 5,993,104
69,800 ANALOG DEVICES INCORPORATED<< 2,248,258
44,895 ASML HOLDING NV<< 1,273,222
500,428 CHARTERED SEMICONDUCTOR MANUFACTURING LIMITED+ 289,691
337,090 CISCO SYSTEMS INCORPORATED+ 8,642,988
25,825 DOLBY LABORATORIES INCORPORATED CLASS A+ 1,036,874
431,700 INTEL CORPORATION 9,609,642
55,735 INTERSIL CORPORATION CLASS A 1,489,239
8,815 LG ELECTRONICS INCORPORATED 1,375,901
43,085 LINEAR TECHNOLOGY CORPORATION<< 1,506,252
35,440 MEMC ELECTRONIC MATERIALS INCORPORATED+ 2,231,657
59,190 MICROCHIP TECHNOLOGY INCORPORATED<< 2,175,233
61,650 NETAPP INCORPORATED+ 1,491,930
98,685 NVIDIA CORPORATION+ 2,027,977
158,225 ON SEMICONDUCTOR CORPORATION+<< 1,181,941
296,930 QUALCOMM INCORPORATED 12,824,407
8,766 SAMSUNG ELECTRONICS COMPANY LIMITED 6,216,153
54,405 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED ADR 611,512
62,225,981
------------
Wells Fargo Advantage Specialty Funds 15
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED TECHNOLOGY FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 21.77%
88,940 APPLE INCORPORATED+ $ 15,471,113
330,290 EMC CORPORATION 5,086,466
20,285 GAMESTOP CORPORATION CLASS A+ 1,116,486
130,584 HEWLETT-PACKARD COMPANY 6,052,568
2,265 HIGH TECH COMPUTER CORPORATION(I) 227,633
106,785 INTERNATIONAL BUSINESS MACHINES CORPORATION 12,888,950
69,480 RESEARCH IN MOTION LIMITED+ 8,450,852
114,829 RIVERBED TECHNOLOGY INCORPORATED+ 1,569,712
50,863,780
------------
OIL & GAS EXTRACTION: 0.28%
4,330 DIAMOND OFFSHORE DRILLING INCORPORATED 543,025
1,385 WEATHERFORD INTERNATIONAL LIMITED+ 111,728
654,753
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 2.34%
205,035 CORNING INCORPORATED 5,476,486
------------
TOTAL COMMON STOCKS (COST $199,520,205) 211,448,734
------------
Rights: 0.00%
30,500 SEAGATE TECHNOLOGY RIGHTS+(A)(I) 0
TOTAL RIGHTS (COST $0) 0
COLLATERAL FOR SECURITIES LENDING: 5.09%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.30%
100,322 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 100,322
122,682 BLACKROCKTEMP FUND #24 MONEY MARKET FUND 122,682
259,963 DAILY ASSETS FUND INSTITUTIONAL 259,963
215,671 DREYFUS CASH MANAGEMENT FUND 215,671
698,638
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 4.79%
$ 115,887 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 115,833
39,918 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 39,857
125,283 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 125,061
93,962 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 93,933
74,230 APRECO LLC++ 2.94 05/28/2008 74,068
262,782 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 262,782
62,642 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 62,582
78,302 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 78,232
214,338 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $214,350) 2.00 05/01/2008 214,338
239,034 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $239,050) 2.47 05/01/2008 239,034
78,302 BANK OF 3.06 10/14/2008 78,261
125,283 BANK OF SCOTLAND PLC 2.80 05/29/2008 125,011
840,754 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $840,801) 2.00 05/01/2008 840,754
62,642 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 62,511
64,349 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 64,206
16 Wells Fargo Advantage Specialty Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED TECHNOLOGY FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 62,642 CHARIOT FUNDING LLC++ 2.70% 05/14/2008 $ 62,581
62,642 CHARIOT FUNDING LLC++ 2.76 05/29/2008 62,508
166,138 CHEYNE FINANCE LLC+++/-(A)@@(I) 6.40 02/25/2008 119,620
127,774 CHEYNE FINANCE LLC+++/-(A)@@(I) 6.48 05/19/2008 91,997
39,918 CIESCO LLC++ 2.90 05/21/2008 39,857
92,396 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 92,162
313,521 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 313,521
234,906 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 234,380
840,754 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $840,801) 2.00 05/01/2008 840,754
125,283 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 125,068
219,872 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 219,801
62,642 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 62,590
62,642 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 62,512
313,208 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 312,048
250,567 GALLEON CAPITAL LLC++ 2.90 05/21/2008 250,163
259,650 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 259,545
313,208 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 312,763
203,585 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 203,585
140,944 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 140,859
225,961 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 225,873
156,604 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 156,604
156,604 LINKS FINANCE LLC+++/- 2.52 08/15/2008 155,789
250,567 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $250,584) 2.40 05/01/2008 250,567
65,908 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 65,832
62,642 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 62,510
14,486 MORGAN STANLEY+/- 2.84 10/15/2008 14,474
141,993 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $142,001) 2.00 05/01/2008 141,993
286,585 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $286,604) 2.41 05/01/2008 286,585
125,283 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 125,133
156,604 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 155,768
144,076 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 144,065
91,313 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 91,110
149,557 PICAROS FUNDING LLC++ 2.60 05/06/2008 149,503
62,642 PRUDENTIAL PLC++ 2.88 05/28/2008 62,507
250,567 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 250,546
127,946 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 127,745
125,283 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 125,055
43,849 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 43,829
78,302 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 78,178
62,642 SLM CORPORATION+++/- 2.73 05/12/2008 62,609
325,737 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 325,609
156,604 STANFIELD VICTORIA FUNDING LLC+++/-(A)@@(I) 5.47 02/15/2008 139,628
97,095 STANFIELD VICTORIA FUNDING LLC+++/-(A)@@(I) 5.27 04/03/2008 86,569
62,642 SWEDBANK MORTGAGE AB 2.95 05/27/2008 62,509
Wells Fargo Advantage Specialty Funds 17
Portfolio of Investments--April 30, 2008 (Unaudited)
SPECIALIZED TECHNOLOGY FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$109,623 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85% 05/09/2008 $ 109,553
142,817 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 142,650
78,302 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 78,121
469,812 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 469,561
78,302 UNICREDITO ITALIANO BANK IRELAND+++/- 2.74 10/14/2008 78,254
78,302 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 78,260
134,680 VICTORIA FINANCE LLC+++/-(A)@@(I) 2.60 07/28/2008 120,080
78,302 VICTORIA FINANCE LLC+++/-(A)@@(I) 2.84 08/07/2008 69,814
156,604 WHITE PINE FINANCE LLC+++/-(A)@@(I) 5.43 02/22/2008 143,606
219,246 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 219,177
11,182,443
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $12,111,735) 11,881,081
------------
SHARES
- ----------
SHORT-TERM INVESTMENTS: 6.59%
MUTUAL FUNDS: 6.59%
15,391,249 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 15,391,249
------------
TOTAL SHORT-TERM INVESTMENTS (COST $15,391,249) 15,391,249
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $227,023,189)* 102.20% $238,721,064
OTHER ASSETS AND LIABILITIES, NET (2.20) (5,147,885)
------ ------------
TOTAL NET ASSETS 100.00% $233,573,179
------ ------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
(i) Illiquid security.
~ 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.
++ Short-term security of an affiliate of the Fund with a cost of $15,391,249.
* 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.
18 Wells Fargo Advantage Specialty Funds
Statements of Assets and Liabilities--April 30, 2008 (Unaudited)
Specialized
Financial Specialized
Services Technology
Fund Fund
------------ -------------
ASSETS
Investments
In securities, at market value (including securities on loan) ................ $193,595,185 $ 211,448,734
Collateral received for securities loaned (Note 2) ........................... 18,772,928 11,881,081
Investments in affiliates .................................................... 1,340,293 15,391,249
------------ -------------
Total investments at market value (see cost below) .............................. 213,708,406 238,721,064
------------ -------------
Cash ............................................................................ 50,000 50,000
Receivable for Fund shares issued ............................................... 16,000 290,957
Receivable for investments sold ................................................. 0 12,583,742
Receivables for dividends and interest .......................................... 238,021 81,282
------------ -------------
Total assets ....................................................................... 214,012,427 251,727,045
------------ -------------
LIABILITIES
Payable for Fund shares redeemed ................................................ 51,979 64,953
Payable for investments purchased ............................................... 0 5,662,086
Payable to investment advisor and affiliates (Note 3) ........................... 161,076 244,232
Payable upon receipt of securities loaned (Note 2) .............................. 19,080,355 12,111,735
Accrued expenses and other liabilities .......................................... 78,403 70,860
------------ -------------
Total liabilities .................................................................. 19,371,813 18,153,866
------------ -------------
TOTAL NET ASSETS ................................................................... $194,640,614 $ 233,573,179
============ =============
NET ASSETS CONSIST OF
Paid-in capital ................................................................. $180,382,074 $ 353,765,725
Undistributed net investment income (loss) ...................................... 301,947 (738,106)
Undistributed net realized gain (loss) on investments ........................... (3,924,379) (131,150,628)
Net unrealized appreciation (depreciation) of investments, foreign currencies
and translation of assets and liabilities denominated in foreign currencies .. 17,880,972 11,696,188
------------ -------------
TOTAL NET ASSETS ................................................................... $194,640,614 $ 233,573,179
============ =============
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
Net assets - Class A ............................................................ $192,166,388 $ 145,169,806
Shares outstanding - Class A .................................................... 70,000,453 21,922,513
Net asset value per share - Class A ............................................. $ 2.75 $ 6.62
Maximum offering price per share - Class A(2) ................................... $ 2.92 $ 7.02
Net assets - Class B ............................................................ $ 1,725,120 $ 7,738,452
Shares outstanding - Class B .................................................... 630,058 1,238,687
Net asset value and offering price per share - Class B .......................... $ 2.74 $ 6.25
Net assets - Class C ............................................................ $ 749,106 $ 5,688,470
Shares outstanding - Class C .................................................... 275,814 912,284
Net asset value and offering price per share - Class C .......................... $ 2.72 $ 6.24
Net assets - Class Z ............................................................ NA $ 74,976,451
Shares outstanding - Class Z .................................................... NA 11,376,799
Net asset value and offering price per share - Class Z .......................... NA $ 6.59
------------ -------------
Investments at cost ................................................................ $195,827,434 $ 227,023,189
------------ -------------
Securities on loan, at market value (Note 2) ....................................... $ 18,332,403 $ 11,452,353
------------ -------------
- ----------
(1) Each Fund has an unlimited number of authorized shares.
(2) Maximum offering price is computed as 100/94.25 of net asset value. On
investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Specialty Funds 19
Statements of Operations--For the Six Months Ended April 30, 2008 (Unaudited)
Specialized
Financial Specialized
Services Technology
Fund Fund
------------ -------------
INVESTMENT INCOME
Dividends(1) .................................................................... $ 3,636,106 $ 751,661
Interest from affiliated securities ............................................. 19,060 669,596
Securities lending income, net .................................................. 45,545 95,247
------------ -------------
Total investment income ............................................................ 3,700,711 1,516,504
------------ -------------
EXPENSES
Advisory fees ................................................................... 1,051,341 1,283,292
Administration fees
Fund Level ................................................................... 55,334 61,109
Class A ...................................................................... 306,063 211,650
Class B ...................................................................... 2,753 14,644
Class C ...................................................................... 1,053 8,294
Class Z ...................................................................... NA 166,918
Custody fees .................................................................... 22,133 85,553
Shareholder servicing fees (Note 3) ............................................. 273,364 304,606
Accounting fees ................................................................. 19,331 23,293
Distribution fees (Note 3)
Class B ...................................................................... 7,375 39,227
Class C ...................................................................... 2,821 22,218
Professional fees ............................................................... 17,535 17,047
Registration fees ............................................................... 16,398 23,091
Shareholder reports ............................................................. 29,896 29,095
Trustees' fees .................................................................. 4,323 4,323
Other fees and expenses ......................................................... 7,148 7,133
------------ -------------
Total expenses ..................................................................... 1,816,868 2,301,493
------------ -------------
LESS
Waived fees and reimbursed expenses (Note 3) .................................... (310,504) (46,883)
Net expenses .................................................................... 1,506,364 2,254,610
------------ -------------
Net investment income (loss) ....................................................... 2,194,347 (738,106)
------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Securities, foreign currencies and foreign currency translation ................. (2,525,480) 8,973,980
------------ -------------
Net realized gain and loss from investments ........................................ (2,525,480) 8,973,980
------------ -------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Securities, foreign currencies and foreign currency translation ................. (56,636,229) (53,198,832)
------------ -------------
Net change in unrealized appreciation (depreciation) of investments ................ (56,636,229) (53,198,832)
------------ -------------
Net realized and unrealized gain (loss) on investments ............................. (59,161,709) (44,224,852)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .................... $(56,967,362) $(44,962,958)
============ =============
(1) Net of foreign withholding taxes of ............................................ $ 4,089 $ 2,636
The accompanying notes are an integral part of these financial statements.
20 Wells Fargo Advantage Specialty Funds
Statements of Changes in Net Assets
SPECIALIZED FINANCIAL
SERVICES FUND SPECIALIZED TECHNOLOGY FUND
--------------------------- ---------------------------
For the For the
Six Months Six Months
Ended For the Ended For the
April 30, Year Ended April 30, Year Ended
2008 October 2008 October
(Unaudited) 31, 2007 (Unaudited) 31, 2007
------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .......................................... $290,537,750 $359,168,516 $279,136,367 $219,109,933
OPERATIONS
Net investment income (loss) .................................. 2,194,347 4,387,235 (738,106) (2,671,020)
Net realized gain (loss) on investments ....................... (2,525,480) 24,858,386 8,973,980 41,386,887
Net change in unrealized appreciation (depreciation)
of investments ............................................. (56,636,229) (29,107,441) (53,198,832) 44,826,403
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from operations .. (56,967,362) 138,180 (44,962,958) 83,542,270
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A .................................................... (1,879,235) (4,273,019) 0 0
Class B .................................................... (9,323) (15,821) 0 0
Class C .................................................... (3,842) (5,381) 0 0
Class Z .................................................... NA NA 0 0
Net realized gain on sales of investments
Class A .................................................... (24,367,046) (26,130,265) 0 0
Class B .................................................... (217,904) (280,729) 0 0
Class C .................................................... (81,220) (79,775) 0 0
Class Z .................................................... NA NA 0 0
------------ ------------ ------------ ------------
Total distributions to shareholders .............................. (26,558,570) (30,784,990) 0 0
------------ ------------ ------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ........................... 3,300,838 3,779,443 58,079,957 55,109,038
Reinvestment of distributions - Class A ....................... 23,817,182 27,462,786 0 0
Cost of shares redeemed - Class A ............................. (39,535,965) (68,181,046) (48,852,929) (46,755,488)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from capital
share transactions - Class A ............................... (12,417,945) (36,938,817) 9,227,028 8,353,550
------------ ------------ ------------ ------------
Proceeds from shares sold - Class B ........................... 69,780 160,967 312,827 653,805
Reinvestment of distributions - Class B ....................... 210,174 272,182 0 0
Cost of shares redeemed - Class B ............................. (355,377) (1,413,077) (6,637,935) (15,445,421)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from capital
share transactions - Class B ............................... (75,423) (979,928) (6,325,108) (14,791,616)
------------ ------------ ------------ ------------
Proceeds from shares sold - Class C ........................... 68,455 32,339 758,699 1,082,804
Reinvestment of distributions - Class C ....................... 68,312 69,234 0 0
Cost of shares redeemed - Class C ............................. (14,603) (166,784) (841,411) (1,333,583)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from capital
share transactions - Class C ............................... 122,164 (65,211) (82,712) (250,779)
------------ ------------ ------------ ------------
Proceeds from shares sold - Class Z ........................... NA NA 2,364,035 3,917,378
Cost of shares redeemed - Class Z ............................. NA NA (5,783,473) (20,744,369)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from capital
share transaction - Class Z ................................ NA NA (3,419,438) (16,826,991)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from capital
share transactions - Total .................................... (12,371,204) (37,983,956) (600,230) (23,515,836)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ............................ (95,897,136) (68,630,766) (45,563,188) 60,026,434
============ ============ ============ ============
ENDING NET ASSETS ................................................ $194,640,614 $290,537,750 $233,573,179 $279,136,367
============ ============ ============ ============
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Specialty Funds 21
Statements of Changes in Net Assets
SPECIALIZED FINANCIAL
SERVICES FUND SPECIALIZED TECHNOLOGY FUND
--------------------------- ---------------------------
For the For the
Six Months Six Months
Ended For the Ended For the
April 30, Year Ended April 30, Year Ended
2008 October 2008 October
(Unaudited) 31, 2007 (Unaudited) 31, 2007
------------ ------------ ------------ ------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ......................................... 1,132,951 928,142 8,382,950 8,103,064
Shares issued in reinvestment of distributions - Class A ...... 7,790,044 6,808,019 0 0
Shares redeemed - Class A ..................................... (13,370,254) (16,915,118) (7,329,727) (7,453,984)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding - Class A ....... (4,447,259) (9,178,957) 1,053,223 649,080
------------ ------------ ------------ ------------
Shares sold - Class B ......................................... 22,013 39,304 46,255 108,610
Shares issued in reinvestment of distributions - Class B ...... 68,868 67,590 0 0
Shares redeemed - Class B ..................................... (119,332) (351,449) (1,014,577) (2,494,038)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding - Class B ....... (28,451) (244,555) (968,322) (2,385,428)
------------ ------------ ------------ ------------
Shares sold - Class C ......................................... 23,612 8,068 116,936 166,576
Shares issued in reinvestment of distributions - Class C ...... 22,543 17,328 0 0
Shares redeemed - Class C ..................................... (4,611) (41,843) (137,866) (229,527)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding - Class C ....... 41,544 (16,447) (20,930) (62,951)
------------ ------------ ------------ ------------
Shares sold - Class Z ......................................... NA NA 353,976 614,249
Shares issued in reinvestment of distributions - Class Z ...... NA NA 0 0
Shares redeemed - Class Z ..................................... NA NA (848,464) (3,424,708)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding - Class Z ....... NA NA (494,488) (2,810,459)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ............................ $ (4,434,166) $ (9,439,959) $ (430,517) $ (4,609,758)
============ ============ ============ ============
Ending balance of undistributed net investment income (loss) ..... 301,947 0 (738,106) 0
------------ ------------ ------------ ------------
The accompanying notes are an integral part of these financial statements.
22 Wells Fargo Advantage Specialty Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net Distributions
Value Per Investment Gain (Loss) Investment from Net
Share Income (Loss) on Investments Income Realized Gains
--------- ------------- -------------- ------------- --------------
SPECIALIZED FINANCIAL SERVICES FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited)... $3.86 0.03 (0.77) (0.03) (0.34)
November 1, 2006 to October 31, 2007 ............ $4.24 0.05 (0.06) (0.05) (0.32)
November 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
Class B
November 1, 2007 to April 30, 2008 (Unaudited)... $3.85 0.02 (0.78) (0.01) (0.34)
November 1, 2006 to October 31, 2007 ............ $4.23 0.02 (0.06) (0.02) (0.32)
November 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
Class C
November 1, 2007 to April 30, 2008 (Unaudited)... $3.82 0.02 (0.77) (0.01) (0.34)
November 1, 2006 to October 31, 2007 ............ $4.20 0.02 (0.06) (0.02) (0.32)
November 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
SPECIALIZED TECHNOLOGY FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited)... $7.83 (0.02)(7) (1.19) 0.00 0.00
November 1, 2006 to October 31, 2007 ............ $5.45 (0.07)(7) 2.45 0.00 0.00
November 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
Class B
November 1, 2007 to April 30, 2008 (Unaudited)... $7.42 (0.04)(7) (1.13) 0.00 0.00
November 1, 2006 to October 31, 2007 ............ $5.20 (0.10)(7) 2.32 0.00 0.00
November 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
- ----------
(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.
(7) Calculated based upon average shares outstanding.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Specialty Funds 23
Financial Highlights
Ending Ratio to Average Net Assets (Annualized)(1)
Distributions in Net Asset -----------------------------------------------
Excess of Value Per Net Investment Gross Expenses Net
Realized Gains Share Income (Loss) Expenses Waived Expenses
---------------- --------- -------------- -------- -------- --------
SPECIALIZED FINANCIAL SERVICES FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited)... 0.00 $2.75 1.99% 1.63% (0.28)% 1.35%
November 1, 2006 to October 31, 2007 ............ 0.00 $3.86 1.31% 1.59% (0.24)% 1.35%
November 1, 2005 to October 31, 2006 ............ 0.00 $4.24 1.17% 1.58% (0.23)% 1.35%
October 1, 2005(4) to October 31, 2005 .......... 0.00 $3.80 (0.07)% 1.58% (0.23)% 1.35%
October 1, 2004 to September 30, 2005 ........... 0.00 $3.70 1.15% 1.58% (0.23)% 1.35%
October 1, 2003 to September 30, 2004 ........... 0.00 $3.83 0.71% 1.60% (0.25)% 1.35%
October 1, 2002(6) to September 30, 2003 ........ 0.00 $4.26 0.82% 1.59% (0.24)% 1.35%
Class B
November 1, 2007 to April 30, 2008 (Unaudited)... 0.00 $2.74 1.24% 2.38% (0.28)% 2.10%
November 1, 2006 to October 31, 2007 ............ 0.00 $3.85 0.56% 2.34% (0.24)% 2.10%
November 1, 2005 to October 31, 2006 ............ 0.00 $4.23 0.45% 2.33% (0.23)% 2.10%
October 1, 2005(4) to October 31, 2005 .......... 0.00 $3.79 (0.81)% 2.33% (0.23)% 2.10%
October 1, 2004 to September 30, 2005 ........... 0.00 $3.69 0.40% 2.33% (0.23)% 2.10%
October 1, 2003 to September 30, 2004 ........... 0.00 $3.82 (0.02)% 2.35% (0.25)% 2.10%
October 1, 2002(6) to September 30, 2003 ........ 0.00 $4.25 0.07% 2.45% (0.35)% 2.10%
Class C
November 1, 2007 to April 30, 2008 (Unaudited)... 0.00 $2.72 1.23% 2.36% (0.26)% 2.10%
November 1, 2006 to October 31, 2007 ............ 0.00 $3.82 0.56% 2.34% (0.24)% 2.10%
November 1, 2005 to October 31, 2006 ............ 0.00 $4.20 0.42% 2.33% (0.23)% 2.10%
October 1, 2005(4) to October 31, 2005 .......... 0.00 $3.77 (0.82)% 2.33% (0.23)% 2.10%
October 1, 2004 to September 30, 2005 ........... 0.00 $3.67 0.40% 2.33% (0.23)% 2.10%
October 1, 2003 to September 30, 2004 ........... 0.00 $3.80 (0.04)% 2.35% (0.25)% 2.10%
October 1, 2002(6) to September 30, 2003 ........ 0.00 $4.23 0.07% 2.55% (0.45)% 2.10%
SPECIALIZED TECHNOLOGY FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited)... 0.00 $6.62 (0.50)% 1.79% (0.04)% 1.75%
November 1, 2006 to October 31, 2007 ............ 0.00 $7.83 (1.05)% 1.79% (0.04)% 1.75%
November 1, 2005 to October 31, 2006 ............ 0.00 $5.45 (1.13)% 1.83% (0.08)% 1.75%
October 1, 2005(4) to October 31, 2005 .......... 0.00 $5.20 (1.30)% 1.78% (0.03)% 1.75%
October 1, 2004 to September 30, 2005 ........... 0.00 $5.21 (1.33)% 1.80% (0.05)% 1.75%
October 1, 2003 to September 30, 2004 ........... 0.00 $4.13 (1.44)% 1.80% (0.05)% 1.75%
October 1, 2002 to September 30, 2003 ........... 0.00 $3.93 (1.45)% 1.98% (0.23)% 1.75%
Class B
November 1, 2007 to April 30, 2008 (Unaudited)... 0.00 $6.25 (1.24)% 2.53% (0.03)% 2.50%
November 1, 2006 to October 31, 2007 ............ 0.00 $7.42 (1.79)% 2.54% (0.04)% 2.50%
November 1, 2005 to October 31, 2006 ............ 0.00 $5.20 (1.89)% 2.58% (0.08)% 2.50%
October 1, 2005(4) to October 31, 2005 .......... 0.00 $5.00 (2.05)% 2.53% (0.03)% 2.50%
October 1, 2004 to September 30, 2005 ........... 0.00 $5.02 (2.09)% 2.55% (0.05)% 2.50%
October 1, 2003 to September 30, 2004 ........... 0.00 $4.01 (2.19)% 2.55% (0.05)% 2.50%
October 1, 2002 to September 30, 2003 ........... 0.00 $3.85 (2.10)% 3.08% (0.58)% 2.50%
Portfolio Net Assets at
Total Turnover End of Period
Return(2) Rate(5) (000's omitted)
--------- --------- ---------------
SPECIALIZED FINANCIAL SERVICES FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited)... (20.15)% 2% $192,166
November 1, 2006 to October 31, 2007 ............ (0.49)% 12% $287,109
November 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
Class B
November 1, 2007 to April 30, 2008 (Unaudited)... (20.51)% 2% $ 1,725
November 1, 2006 to October 31, 2007 ............ (1.27)% 12% $ 2,533
November 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
Class C
November 1, 2007 to April 30, 2008 (Unaudited)... (20.40)% 2% $ 749
November 1, 2006 to October 31, 2007 ............ (1.25)% 12% $ 895
November 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
SPECIALIZED TECHNOLOGY FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited)... (15.45)% 112% $145,170
November 1, 2006 to October 31, 2007 ............ 43.67% 178% $163,333
November 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
Class B
November 1, 2007 to April 30, 2008 (Unaudited)... (15.77)% 112% $ 7,738
November 1, 2006 to October 31, 2007 ............ 42.69% 178% $ 16,366
November 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
24 Wells Fargo Advantage Specialty Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net Distributions
Value Per Investment Gain (Loss) Investment from Net
Share Income (Loss) on Investments Income Realized Gains
--------- ------------- -------------- ------------- --------------
SPECIALIZED TECHNOLOGY FUND (continued)
Class C
November 1, 2007 to April 30, 2008 (Unaudited).. $7.40 (0.04)(7) (1.12) 0.00 0.00
November 1, 2006 to October 31, 2007 ........... $5.19 (0.11)(7) 2.32 0.00 0.00
November 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
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) $7.79 (0.02)(7) (1.18) 0.00 0.00
November 1, 2006 to October 31, 2007 ........... $5.44 (0.07)(7) 2.42 0.00 0.00
November 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.
Wells Fargo Advantage Specialty Funds 25
Financial Highlights
Ending Ratio to Average Net Assets (Annualized)(1)
Distributions in Net Asset -----------------------------------------------
Excess of Value Per Net Investment Gross Expenses Net
Realized Gains Share Income (Loss) Expenses Waived Expenses
---------------- --------- -------------- -------- -------- --------
SPECIALIZED TECHNOLOGY FUND (continued)
Class C
November 1, 2007 to April 30, 2008 (Unaudited).. 0.00 $6.24 (1.27)% 2.52% (0.02)% 2.50%
November 1, 2006 to October 31, 2007 ........... 0.00 $7.40 (1.81)% 2.54% (0.04)% 2.50%
November 1, 2005 to October 31, 2006 ........... 0.00 $5.19 (1.88)% 2.58% (0.08)% 2.50%
October 1, 2005(4) to October 31, 2005 ......... 0.00 $4.99 (2.05)% 2.53% (0.03)% 2.50%
October 1, 2004 to September 30, 2005 .......... 0.00 $5.01 (2.09)% 2.55% (0.05)% 2.50%
October 1, 2003 to September 30, 2004 .......... 0.00 $4.00 (2.19)% 2.54% (0.04)% 2.50%
October 1, 2002 to September 30, 2003 .......... 0.00 $3.84 (2.10)% 2.91% (0.41)% 2.50%
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) 0.00 $6.59 (0.66)% 1.94% (0.05)% 1.89%
November 1, 2006 to October 31, 2007 ........... 0.00 $7.79 (1.20)% 1.96% (0.06)% 1.90%
November 1, 2005 to October 31, 2006 ........... 0.00 $5.44 (1.30)% 2.00% (0.10)% 1.90%
October 1, 2005(4) to October 31, 2005 ......... 0.00 $5.20 (1.45)% 1.95% (0.05)% 1.90%
April 11, 2005(3) to September 30, 2005 ........ 0.00 $5.21 (1.37)% 1.95% (0.05)% 1.90%
Portfolio Net Assets at
Total Turnover End of Period
Return(2) Rate(5) (000's omitted)
--------- --------- ---------------
SPECIALIZED TECHNOLOGY FUND (continued)
Class C
November 1, 2007 to April 30, 2008 (Unaudited).. (15.68)% 112% $5,688
November 1, 2006 to October 31, 2007 ........... 42.58% 178% $6,907
November 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
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) (15.40)% 112% $74,976
November 1, 2006 to October 31, 2007 ........... 43.20% 178% $92,530
November 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
26 Wells Fargo Advantage Specialty Funds
Notes to Financial Statements
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The Trust commenced operations on November 8, 1999, and at April 30,
2008, was comprised of 111 separate series (each, a "Fund", collectively, the
"Funds"). These financial statements present the Specialized Financial Services
Fund and Specialized Technology Fund.
Specialized Financial Services Fund is a diversified series of the Trust. The
Specialized Technology Fund is a 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.
Under the Trust's organizational documents, their officers and directors are
indemnified against certain liabilities that may arise out of performance of
their duties to the Trust. Additionally, in the normal course of business, the
Trust may enter into contracts with service providers that contain a variety of
indemnification clauses. The Trust's maximum exposure under these arrangements
is dependent on future claims that may be made against the 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.
Wells Fargo Advantage Specialty Funds 27
Notes to Financial Statements
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 with original maturities of 60 days or less and other short-term
debt securities in which cash collateral received for securities loaned may be
invested, 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.
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 of the Specialized Financial Services Fund, if any, is
declared and distributed quarterly. Net investment income of the Specialized
Technology Fund, 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.
28 Wells Fargo Advantage Specialty Funds
Notes to Financial Statements
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It is
the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under Subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of substantially all of its investment
company taxable income and any net realized capital gains (after reduction for
capital loss carryforwards) sufficient to relieve it from all, or substantially
all, federal income taxes. Accordingly, no provision for federal income taxes
was required at April 30, 2008.
Management has analyzed the Funds' tax positions taken on federal income tax
returns for all open tax years and has concluded that as of April 30, 2008, no
provision for income tax would be required in the Funds' financial statements.
The Funds' federal and state income and federal excise tax returns for tax years
for which the applicable statutes of limitations have not expired (open tax
years: September 30, 2004; September 30, 2005; October 31, 2005; October 31,
2006; October 31, 2007) are subject to examination by the Internal Revenue
Service and state departments of revenue.
At October 31, 2007, 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 2008 $80,936,817
2009 49,851,486
2010 7,752,951
2011 445,585
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts to protect against a
possible loss resulting from an adverse change in the relationship between
foreign currencies and the U.S. dollar, or between foreign currencies. A forward
contract is an agreement between two counterparties for future delivery or
receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts which have been offset but have not reached
their settlement date are included in unrealized gains and losses. At April 30,
2008 the Funds did not hold any forward foreign currency contracts.
FUTURES CONTRACTS
The Funds may purchase futures contracts to gain exposure to market changes,
which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the value of the underlying
contracts. Risks of entering into futures contracts include the possibility that
there may be an illiquid market and that a change in the value of the contract
may not correlate with changes in the value of the underlying securities. At
April 30, 2008, the Funds did not hold any open futures contracts.
INVESTMENTS SOLD SHORT
The 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
Wells Fargo Advantage Specialty Funds 29
Notes to Financial Statements
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
exdividend date and paid to the counterparty on the dividend pay date.
Securities sold short at April 30, 2008, if any, and their related market values
and proceeds are set forth in the Schedule of Investments Sold Short. For the
six-month period ended April 30, 2008, there were no securities sold short.
REPURCHASE AGREEMENTS
The Funds 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 Funds may loan securities in return for securities, irrevocable letters of
credit or cash collateral, which is invested in various short-term fixed income
securities. A Fund may receive compensation for lending securities in the form
of fees or by retaining a portion of interest on the investment securities or
cash received as collateral. A Fund also continues to receive interest or
dividends on the securities loaned. Security loans are secured at all times by
collateral. The collateral is equal to at least 102% of the market value of the
securities loaned plus accrued interest when the transaction is entered into.
The collateral supporting loans of domestic and foreign equity securities and
corporate bonds 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. Cash collateral received by a Fund pursuant to these loans generally
is invested on behalf of the Fund by the securities lending agent in
high-quality short-term debt investments (including money market instruments)
according to written investment guidelines that are approved by the Fund's
adviser and designed to be consistent with the investment objective, principal
investment strategies and policies of the Fund. Gain or loss in the market price
of the securities loaned and securities in which the cash collateral is invested
by a Fund that may occur during the term of the loan are reflected in the value
of the Funds. A risk from securities lending is that the borrower may not
provide additional collateral when required or return the securities when due or
when called for by the Fund. A further risk is the potential loss in the market
price of the securities in which the cash collateral may be invested. Wells
Fargo Bank, N.A., the Funds' custodian, acts as the securities lending agent for
the Funds and receives for its services 25% of the revenues earned on the
securities lending activities (reduced from 30% effective September 1, 2007) and
incurs all expenses. For the six-month period ended April 30, 2008, Wells Fargo
Bank, N.A. waived its share of revenues earned on securities lending activities.
The value of the securities on loan and the value of the related collateral at
April 30, 2008, 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 movements in interest or exchange rates or securities
values. The Funds did not hold any written options during the period ended April
30, 2008.
30 Wells Fargo Advantage Specialty Funds
Notes to Financial Statements
STRUCTURED INVESTMENT VEHICLES
The Funds may invest in structured debt securities, such as those issued by
Structured Investment Vehicles, or "SIVs". SIVs invest in a diversified pool of
underlying securities, which may include finance company debt and structured
finance assets, residential mortgage-backed securities, commercial
mortgage-backed securities, collateralized loan obligations, collateralized debt
obligations and other asset backed securities. The ability of a SIV to repay
debt depends primarily on the cash collections received from the SIV's
underlying asset portfolio, which may include certain assets such as subprime
mortgages that are subject to heightened risks of credit quality or market value
deterioration under the continuing adverse conditions in the U.S. credit
markets, and on the ability to obtain short-term funding through the issuance of
new debt. Investments in these securities present increased credit and liquidity
risks as there could be losses to a Fund in the event of credit or market value
deterioration in a SIV's underlying portfolio, mismatches in the timing of the
cash flows of the underlying asset interests and the repayment obligations of
maturing securities issued by a SIV, or a SIV's inability to issue new debt.
As of April 30, 2008, the following Funds owned certain of these types of SIVs
which are currently in default and valued at fair value in the Portfolio of
Investments or have been restructured following default, including the
percentage of each Fund's net assets invested in these securities:
Defaulted SIVs
FUND ($Market Value) % of Net Assets
- ---- --------------- ---------------
SPECIALIZED FINANCIAL SERVICES FUND $1,218,730 0.63%
SPECIALIZED TECHNOLOGY FUND 771,314 0.33%
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 Subadvisory
Fees (% of Fees (% of
Average Daily Average Daily Average Daily Average Daily
FUND Net Assets Net Assets) Subadviser Net Assets Net Assets)
- ---- ------------------ ------------- -------------- ------------------- -------------
SPECIALIZED FINANCIAL SERVICES FUND First $500 million 0.950 Wells Capital First $100 million 0.450
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 TECHNOLOGY FUND First $500 million 1.050 RCM Capital First$50 million 1.000
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
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:
Wells Fargo Advantage Specialty Funds 31
Notes to Financial Statements
Administration Fees
Average Daily (% of Average
Net Assets Daily Net Assets)
---------------- -------------------
Fund Level First $5 billion 0.05
Next $5 billion 0.04
Over $10 billion 0.03
Class A All asset levels 0.28
Class B All asset levels 0.28
Class C All asset levels 0.28
Class Z All asset levels 0.40
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 TECHNOLOGY FUND 0.07
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby each Fund is charged the following annual fees:
% of Average
SHARE CLASS Daily Net Assets
- ----------- ----------------
Class A, Class B, Class C, Class Z 0.25
For the period ended April 30, 2008, shareholder servicing fees paid were as
follows:
FUND Class A Class B Class C Class Z
- ---- -------- ------- ------- -------
SPECIALIZED FINANCIAL SERVICES FUND $270,258 $ 2,384 $ 722 NA
SPECIALIZED TECHNOLOGY FUND 188,973 12,913 6,872 $95,848
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 period ended April 30, 2008, 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.
Each Fund also bears its share of other fees and expenses incurred in the normal
course of business, including but not limited to: professional fees,
registration fees, shareholder reporting costs, and Trustees fees and expenses.
The Trust compensates its independent Trustees for their services, plus travel
and other expenses incurred in attending Board meetings.
32 Wells Fargo Advantage Specialty Funds
Notes to Financial Statements
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, 2008, 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 through February 28, 2009, to waive fees and/or reimburse expenses to
the extent necessary to maintain a certain net operating expense ratio for the
Funds. Net operating expense ratios in effect for the period ended April 30,
2008 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% NA
SPECIALIZED TECHNOLOGY FUND 1.75% 2.50% 2.50% 1.87%(1)
(1) Effective February 29, 2008, the net operating expense ratio for the
Specialized Technology Fund Class Z decreased from 1.90% to 1.87%. The
weighted blended net operating expense ratio for the six-month period ended
April 30, 2008 for the Specialized Technology Fund Class Z was 1.89%.
4. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the period ended April 30, 2008, were as follows:
FUND Purchases at Cost Sales Proceeds
- ---- ----------------- --------------
SPECIALIZED FINANCIAL SERVICES FUND $ 4,953,256 $ 41,414,814
SPECIALIZED TECHNOLOGY FUND 242,645,815 250,749,231
5. BANK BORROWINGS
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the money
market funds) share in a revolving Credit Agreement with The Bank of New York,
whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line. For the period ended April 30, 2008, 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 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, 2008, 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.
Wells Fargo Advantage Specialty Funds 33
Notes to Financial Statements
In March 2008, the FASB issued Statement of Financial Accounting Standards 161
("FAS 161"), "Disclosures about Derivative Instruments and Hedging Activities-an
amendment of FASB Statement No. 133."FAS 161 requires additional discussion
about the reporting entity's derivative instruments and hedging activities, by
providing for qualitative disclosures about the objectives and strategies for
using derivatives, quantitative data about the fair value of and gains and
losses on derivative contracts, and details of credit-risk-related contingent
features in their hedged positions. FAS 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those years. As of April 30, 2008, Management is continuing to
evaluate the impact, if any, that adoption of FAS 161 may have on the financial
statements.
8. SUBSEQUENT EVENT
At its November 7, 2007 regular quarterly meeting, the Board unanimously
approved a set of initiatives designed to streamline the WELLS FARGO ADVANTAGE
FUNDS and standardize shares classes across the fund family.
The Board also approved modifying certain share class names and features. Class
Z shares of the Specialized Technology Fund will be renamed Investor Class
shares and will be modified to assume the features and attributes associated
with Investor Class shares, including their exchange privileges. This share
class modification is expected to take place by the end of the third quarter
2008. Additional information was provided to shareholders approximately 60 days
in advance of the modifications.
34 Wells Fargo Advantage Specialty 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 Portfolio, except money market funds,
are publicly available on the Funds' Web site
(WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or more delayed basis
and for money market funds, on a monthly, seven-day delayed basis. In addition,
top ten holdings information for each Portfolio is publicly available on the
Funds'Web site on a monthly, seven-day or more delayed basis. Each Portfolio
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(1) of each Portfolio. Each of the Trustees
listed below acts in identical capacities for each of the 146 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
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- ----------------------- -------------------------------------------------------------- -------------------
Thomas S. Goho Trustee, since 1987 Co-Director for the Calloway School of Stephens University of None
65 Wake Forest University. Prior thereto, the Thomas Goho Chair
of Finance of Wake Forest University, Calloway School of
Business and Accountancy, from 2006-2007 and Associate
Professor of Finance from 1999-2005.
Peter G. Gordon Trustee, since 1998; Chairman, CEO and Co-Founder of Crystal Geyser Water Company None
65 Chairman, since 2005 and President of Crystal Geyser Roxane Water Company.
(Lead Trustee since 2001)
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, Wharton School, None
55 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 President and CEO of Southern Minnesota Initiative Foundation, None
56 a non-profit organization since 2007 and Senior Fellow at the
Humphrey Institute Policy Forum at the University of Minnesota
since 1995.
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke & Daniels. None
67
Wells Fargo Advantage Specialty Funds 35
Other Information
INTERESTED TRUSTEE(3)
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- -------------------- ----------------------------------------------------------------- -------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate Developer. Prior thereto, Chairman None
63 of Whitepoint Capital, LLC until 2004.
OFFICERS
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- --------------------- ----------------------------------------------------------------- -------------------
Karla M. Rabusch President, since 2003 Executive Vice President of Wells Fargo Bank, N.A. and None
49 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 Secretary of Wells Fargo Funds None
47 Chief Legal Counsel, Management, LLC since 2001. Vice President and Managing Senior
since 2003 Counsel of Wells Fargo Bank, N.A. since 1996.
Stephen W. Leonhardt Treasurer, since 2007 Vice President and Manager of Fund Accounting, Reporting and None
48 Tax for Wells Fargo Funds Management, LLC since 2007. Director
of Fund Administration and SEC Reporting for TIAA-CREF from 2005
to 2007. Chief Operating Officer for UMB Fund Services, Inc.
from 2004 to 2005. Controller for Sungard Transaction Networks
from 2002 to 2004.
Debra Ann Early Chief Compliance Chief Compliance Officer of Wells Fargo Funds Management, LLC None
43 Officer, since 2007 since 2007. Chief Compliance Officer of Parnassus Investments
from 2005 to 2007. Chief Financial Officer of Parnassus
Investments from 2004 to 2007 and Senior Audit Manager of
PricewaterhouseCoopers LLP from 1998 to 2004.
- ----------
(1) The Statement of Additional Information includes additional information
about the 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.
(2) Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
(3) As of April 30, 2008, one of the six 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.
36 Wells Fargo Advantage Specialty Funds
Other Information
BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AND SUB-ADVISORY
AGREEMENTS:
SPECIALIZED FINANCIAL SERVICES 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 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 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 28, 2008, 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 28, 2008, meeting, the Trustees conferred
extensively among themselves and with representatives of Funds Management about
these matters. The Board also met regularly throughout the year and received
information that was useful to it in considering the continuation of the
Advisory Agreements. 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. The Boards
received and considered, among other things, information about the background
and experience of senior management of Funds Management and the qualifications,
backgrounds, tenures 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 financial condition, resources, reputation 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, and the appointment of a new Chief Compliance Officer for
the Funds. 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 and the Sub-Advisers
about various topics, including Funds Management's oversight of service
providers. 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, 2007. The Board also considered these results in
comparison to the median performance of a universe of relevant funds that was
determined by Lipper Inc. ("Lipper") to be similar to the Funds (the
"Universe"), as well as to the Funds' benchmark index and to other comparative
data. Lipper is an independent provider of investment company data. The
Wells Fargo Advantage Specialty Funds 37
Other Information
Board was provided with a description of the methodology used by Lipper to
select the mutual funds in the Universe. The Board noted that the performance of
each Fund was better than, or not appreciably below, the median performance of
each Fund's Universe for all time periods.
The Board received and considered information regarding each Fund's contractual
advisory fees, and net operating expense ratios and their various components,
including actual management fees, transfer agent, custodian and other
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 respective median fees of narrower groups of
funds that were determined by Lipper to be the most similar to the Funds (the
"Peer Group") and to other comparative data. The Board was provided with a
description of the methodology used by Lipper to select the mutual funds in the
Peer Group. The Board noted that the net operating expense ratios for each Fund
were equal to or not appreciably higher than, each Fund's Peer Group's median
net operating expense ratios. The Board also noted Funds Management's
recommendation to reduce the net operating expense ratio for a share class of
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 and other 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 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 approved Funds Management's
recommendation to reduce administration fees for a share class of 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 also considered related information
provided by Funds Management in a separate presentation on financial matters
made at the February 2008 Board meetings. 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 separate profitability information with respect to
Wells Capital Management, as its 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 separate
profitability information with respect to 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
profitability from its relationship with the Specialized Technology Fund was not
a material factor in determining whether to renew the agreement.
38 Wells Fargo Advantage Specialty Funds
Other Information
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
separate presentations on advisory fee breakpoints and economies of scale made
at the February 2008 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 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 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 channels.
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 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.
Wells Fargo Advantage Specialty Funds 39
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
This page is intentionally left blank.
This page is intentionally left blank.
This page is intentionally left blank.
(WELLS FARGO LOGO)
ADVANTAGE FUNDS
More information about WELLS FARGO ADVANTAGE FUNDS is available free upon
request. To obtain literature, please write, e-mail, visit the Funds' Web site,
or call:
WELLS FARGO ADVANTAGE FUNDS
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com
Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF WELLS FARGO ADVANTAGE FUNDS. IF THIS
REPORT IS USED FOR PROMOTIONAL PURPOSES, DISTRIBUTION OF THE REPORT MUST BE
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR A PROSPECTUS CONTAINING
MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-222-8222
OR VISIT THE 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 FINRAI/SIPC, an affiliate of Wells Fargo &
Company.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(C) 2008 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
110490 06-08
SASFLD/SAR113 04-08
(WELLS FARGO LOGO)
ADVANTAGE FUNDS
(GRAPHIC)
Semi-Annual Report
April 30, 2008
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
WANT TO RECEIVE YOUR ANNUAL AND SEMI-ANNUAL REPORTS FASTER?
Sign up for e-delivery at www.wellsfargo.com/advantagefunds, Keyword: eDocs.
CONTENTS
LETTER TO SHAREHOLDERS .................................................... 2
PERFORMANCE HIGHLIGHTS
C&B Mid Cap Value Fund .................................................... 4
Common Stock Fund ......................................................... 6
Mid Cap Growth Fund ....................................................... 8
Small Cap Growth Fund ..................................................... 10
Small Cap Opportunities Fund .............................................. 12
Small Cap Value Fund ...................................................... 14
FUND EXPENSES ............................................................. 16
PORTFOLIO OF INVESTMENTS
C&B Mid Cap Value Fund .................................................... 19
Common Stock Fund ......................................................... 23
Mid Cap Growth Fund ....................................................... 29
Small Cap Growth Fund ..................................................... 35
Small Cap Opportunities Fund .............................................. 41
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 STATEMENTS ............................................. 76
OTHER INFORMATION ......................................................... 87
LIST OF ABBREVIATIONS ..................................................... 92
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(GRAPHIC)
WELLS FARGO ADVANTAGE FUNDS(R)
WELLS FARGO INVESTMENT HISTORY
1971 INTRODUCED ONE OF THE FIRST INSTITUTIONAL INDEX FUNDS.
1978 ONE OF THE FIRST FIRMS TO APPLY ASSET ALLOCATION THEORY TO INVESTMENT
PORTFOLIO MANAGEMENT.
1985 ONE OF THE FIRST FIRMS TO CREATE A THREE-WAY ASSET ALLOCATION FUND THAT
"TILTS" INVESTMENTS TOWARD PORTIONS OF THE MARKET THAT OUR PROPRIETARY MODELS
INDICATE WILL PERFORM BETTER.
1994 INTRODUCED TARGET DATE FUNDS THAT AUTOMATICALLY REALLOCATE THE ASSET MIX
OVER SPECIFIC TIME HORIZONS.
1997 WELLS FARGO LAUNCHED THE WEALTHBUILDER PORTFOLIOS, A UNIQUE "FUND OF FUNDS"
THAT USES FLEXIBLE ASSET ALLOCATION STRATEGIES TO SHIFT ASSETS.
1999 REORGANIZED THE NORWEST ADVANTAGE FUNDS(R) AND STAGECOACH FUNDS(R) INTO THE
WELLS FARGO FUNDS(R).
2003 EXPANDED FIXED-INCOME, SMALL CAP, AND EMERGING MARKETS LINEUP FROM
MONTGOMERY ASSET MANAGEMENT, LLC.
2004 ADDED ADDITIONAL LARGE CAP AND MID CAP FUNDS TO THE LINEUP BY ADOPTING THE
COOKE & BIELER VALUE FUNDS.
2005 WELLS FARGO FUNDS MERGED WITH STRONG FUNDS TO BECOME WELLS FARGO ADVANTAGE
FUNDS, FORMING A FUND FAMILY OF OVER 120 FUNDS AND PLACING IT AMONG THE TOP 20
MUTUAL FUND FAMILIES IN THE UNITED STATES.
2006 ENHANCED AND RENAMED THE WELLS FARGO ADVANTAGE OUTLOOK FUNDS(SM) TO THE
WELLS FARGO ADVANTAGE DOW JONES TARGET DATE FUNDS(SM), WHICH SEEK TO REPLICATE
RETURNS OF THE APPROPRIATE DOW JONES TARGET DATE INDEXES, THE FIRST LIFE CYCLE
INDEXES IN THE INVESTMENT INDUSTRY.
Integrity. Expertise. Solutions.
GUIDED BY A DISTINGUISHED HERITAGE. Since 1852 Wells Fargo has distinguished
itself by safely delivering people and their valuables to distant destinations.
To meet the needs of a vibrant, expanding nation, the company successfully
forged partnerships with local specialists who knew the terrain.
Although much has changed since then, WELLS FARGO ADVANTAGE FUNDS continues to
put the same time and effort into selecting independent portfolio management
teams who oversee our Funds. It's our way of maintaining this early commitment
to integrity and expertise and to providing solutions that help you reach your
destination.
INDEPENDENT THINKING. With a primary focus on delivering long-term performance
and risk management, our approach offers investors access to the strategic
thinking of independent investment teams from 15 different management firms.
While each of our teams concentrates on a specific strategy, collectively they
provide in-depth knowledge and insight across distinct investment styles.
TIME-TESTED APPROACH. Our teams are chosen for their expertise in particular
investment styles and for their consistent, repeatable processes. All remain
independent and free to concentrate solely on managing money and producing
results. Our strict adherence to this approach provides a consistent focus on
long-term results and allows investors to tap into the expertise of leading
institutional investment managers to create fully diversified portfolios.
SOLUTIONS FOR EVERY STAGE. WELLS FARGO ADVANTAGE FUNDS provides investors with
strategic investment solutions that help navigate the complex and ever-changing
investment landscape. Our diverse family of mutual funds includes more than 120
Funds that cover a broad spectrum of investment styles and asset classes, and
each Fund has its own disciplined approach to investing.
NOT PART OF THE SEMI-ANNUAL REPORT.
WELLS FARGO ADVANTAGE FUNDS OFFERS MORE THAN 120 MUTUAL FUNDS ACROSS A WIDE
RANGE OF ASSET CLASSES, REPRESENTING OVER $156 BILLION IN ASSETS UNDER
MANAGEMENT, AS OF APRIL 30, 2008.
EQUITY FUNDS
Asia Pacific Fund Equity Value Fund Opportunity Fund
C&B Large Cap Value Fund Growth and Income Fund Overseas Fund
C&B Mid Cap Value Fund Growth Fund Small Cap Disciplined Fund
Capital Growth Fund Growth Equity Fund Small Cap Growth Fund
Common Stock Fund Index Fund Small Cap Opportunities Fund
Discovery Fund International Core Fund Small Cap Value Fund
Diversified Equity Fund International Equity Fund Small Company Growth Fund
Diversified Small Cap Fund International Value Fund Small Company Value Fund
Emerging Growth Fund Large Cap Appreciation Fund Small/Mid Cap Value Fund
Emerging Markets Equity Fund Large Cap Growth Fund Specialized Financial Services Fund
Endeavor Large Cap Fund Large Company Core Fund Specialized Technology Fund
Endeavor Select Fund Large Company Growth Fund Strategic Small Cap Value Fund
Enterprise Fund Large Company Value Fund U.S. Value Fund
Equity Income Fund Mid Cap Disciplined Fund Value Fund
Equity Index Fund Mid Cap Growth Fund
BOND FUNDS
California Limited-Term Tax-Free Fund Inflation-Protected Bond Fund Short-Term High Yield Bond Fund
California Tax-Free Fund Intermediate Government Income Fund(1) Short-Term Municipal Bond Fund
Colorado Tax-Free Fund Intermediate Tax-Free Fund Stable Income Fund
Corporate Bond Fund Minnesota Tax-Free Fund Strategic Income Fund
Diversified Bond Fund Municipal Bond Fund Total Return Bond Fund
Government Securities Fund(1) National Limited-Term Tax-Free Fund Ultra Short-Term Income Fund
High Income Fund National Tax-Free Fund Ultra Short-Term Municipal Income Fund
High Yield Bond Fund Short Duration Government Bond Fund(1) Ultra-Short Duration Bond Fund
Income Plus Fund Short-Term Bond Fund Wisconsin Tax-Free Fund
ASSET ALLOCATION FUNDS
Aggressive Allocation Fund WealthBuilder Conservative Allocation Portfolio Target 2020 Fund(2)
Asset Allocation Fund WealthBuilder Equity Portfolio Target 2025 Fund(2)
Balanced Fund WealthBuilder Growth Allocation Portfolio Target 2030 Fund(2)
Conservative Allocation Fund WealthBuilder Growth Balanced Portfolio Target 2035 Fund(2)
Growth Balanced Fund WealthBuilder Moderate Balanced Portfolio Target 2040 Fund(2)
Moderate Balanced Fund WealthBuilder Tactical Equity Portfolio Target 2045 Fund(2)
Life Stage-Aggressive Portfolio Target Today Fund(2) Target 2050 Fund(2)
Life Stage-Conservative Portfolio Target 2010 Fund(2)
Life Stage-Moderate Portfolio Target 2015 Fund(2)
MONEY MARKET FUNDS
100% Treasury Money Market Fund(1) Heritage Money Market Fund National Tax-Free Money Market Fund
California Tax-Free Money Market Fund Minnesota Money Market Fund National Tax-Free Money Market Trust
California Tax-Free Money Market Trust Money Market Fund Overland Express Sweep Fund
Cash Investment Money Market Fund Money Market Trust Prime Investment Money Market Fund
Government Money Market Fund(1) Municipal Money Market Fund Treasury Plus Money Market Fund(1)
VARIABLE TRUST FUNDS(3)
VT Asset Allocation Fund VT International Core Fund VT Opportunity Fund
VT C&B Large Cap Value Fund VT Large Company Core Fund VT Small Cap Growth Fund
VT Discovery Fund VT Large Company Growth Fund VT Small/Mid Cap Value Fund
VT Equity Income Fund VT Money Market Fund VT Total Return Bond Fund
AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE WELLS
FARGO ADVANTAGE MONEY MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT
AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN A MONEY MARKET
FUND.
(1) The U.S. Government guarantee applies to certain of the underlying
securities and NOT to shares of the Fund.
(2) The full name of this Fund series is the WELLS FARGO ADVANTAGE DOW JONES
TARGET DATE FUNDS(SM).
(3) The Variable Trust Funds are generally available only through insurance
company variable contracts.
NOT PART OF THE SEMI-ANNUAL REPORT.
2 Wells Fargo Advantage Small and Mid Cap Stock Funds
Letter to Shareholders
(PHOTO OF KARLA M. RABUSCH)
KARLA M. RABUSCH
President
WELLS FORGO ADVANTAGE FUNDS
FALLING PRICES OF NEW AND EXISTING HOMES ESPECIALLY AFFECTED SUBPRIME BORROWERS
WHO FALTERED WHEN EASY ACCESS TO CREDIT ALL BUT DISAPPEARED FOR THEM AND
MARKET-VALUE EQUITY ON THEIR HOMES DECLINED.
DEAR VALUED SHAREHOLDER,
We're pleased to offer you this semi-annual report for the Wells Fargo Advantage
Small and Mid Cap Stock Funds that covers the six-month period that ended April
30, 2008. During the period, the economy struggled to absorb slower growth, high
energy prices, a continuing correction in the housing market, and tighter
lending practices that presented financial challenges to businesses and
consumers.
Falling prices of new and existing homes especially affected subprime borrowers
who faltered when easy access to credit all but disappeared for them and
market-value equity on their homes declined. The price correction in the market
value of homes prevented many struggling borrowers from paying off their full
mortgage balances by selling their homes. Housing market woes also had a ripple
effect as financial markets began to assess the full impact of the subprime
loans that had been packaged and sold both in the United States and abroad. The
rapid collapse of investment bank Bear Stearns, due to high write-offs in its
mortgage-related assets, highlighted some of the more significant risks within
the market.
THE FED RESPONDED IN MANY WAYS.
First, the Fed lowered the federal funds rate (the rate at which member banks
borrow money from each other) by 250 basis points (100 basis points equals
1.00%), with the latest rate cut during the period occurring on April 30.
Second, it lowered the discount rate (the rate at which banks borrow money
directly from the Fed) by 275 basis points. And third, it agreed to make the
discount window available to nonbank dealers and to lend to banks for
longer-than-normal periods of time to help ease some of the constraints on
liquidity. In addition, the Fed launched several other new programs to provide
liquidity to financial institutions.
INVESTORS SOUGHT RELATIVE SAFETY IN MONEY MARKET FUNDS AND IN THE U.S. TREASURY
MARKET.
During the six-month period, the Lehman Brothers U.S. Treasury Index1 returned
5.87%, compared to 4.08% for the broad bond market, as measured by the Lehman
Brothers U.S. Aggregate Index(2). Corporate and high-yield bonds trailed as
investors worried about the effect of a slowing economy on potential future
default rates. In the international credit markets, Europe and Britain
experienced some of the same concerns over liquidity that were felt in the U.S.
credit markets, which resulted in tighter lending practices overseas.
- ----------
(1) Lehman Brothers U.S. Treasury Index includes public obligations of the U.S.
Treasury. Includes only notes and bonds with a minimum outstanding
principal amount of $50 million and a minimum maturity of one year. You
cannot invest directly in an index.
(2) The Lehman Brothers U.S. Aggregate Index includes bonds from the Treasury,
government-related, corporate, agency, mortgage-backed securities, and
asset-backed securities sectors. You cannot invest directly in an index.
Wells Fargo Advantage Small and Mid Cap Stock Funds 3
Letter to Shareholders
THE STOCK MARKET STRUGGLED IN MOST AREAS.
The S&P 500 Index declined 9.64% for the six-month period. Within the S&P 500
Index, value stocks underperformed growth stocks, largely because of continued
weakness in financials as the credit fallout from the housing crisis continued
to work its way through the system. The S&P Financial Index (3) declined 20.03%
for the period. Small cap stocks underperformed large caps, in part because
investors tend to prefer better-established companies during uncertain periods.
Both small caps and large caps underperformed mid cap stocks, which pair some of
the higher growth rates of small caps with some of the financial stability of
large caps. Energy stocks were one of the few bright spots in the market, as oil
prices continued to rise.
PLANNING AHEAD.
The continued uncertainty surrounding the housing market, liquidity, and
inflation supports our belief that successful investing includes a balanced
approach of owning a diversified portfolio while keeping a long-term
perspective. While diversification may not prevent losses in a downturn, it may
help to reduce them and provide you with one way of managing risk. Our diverse
family of mutual funds may also help. We offer more than 120 Funds that cover a
broad spectrum of investment styles and asset classes. 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 investment teams 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
ENERGY STOCKS WERE ONE OF THE FEW BRIGHT SPOTS IN THE MARKET, AS OIL PRICES
CONTINUED TO RISE.
THE CONTINUED UNCERTAINTY SURROUNDING THE HOUSING MARKET, LIQUIDITY, AND
INFLATION SUPPORTS OUR BELIEF THAT SUCCESSFUL INVESTING INCLUDES A BALANCED
APPROACH OF OWNING A DIVERSIFIED PORTFOLIO WHILE KEEPING A LONG-TERM
PERSPECTIVE.
- ----------
(3) 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.
4 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
Wells Fargo Funds Management, LLC
SUBADVISER
Cooke & Bieler, L.P.
PORTFOLIO MANAGERS
Kermit S. Eck, CFA
Daren C. Heitman, CFA
Michael M. Meyer, CFA
James R. Norris
Edward W. O'Connor, CFA
R. James O'Neil, CFA
Mehul Trivedi, CFA
FUND INCEPTION
February 18, 1998
SECTOR DISTRIBUTION1
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Staples (6%)
Consumer Discretionary (22%)
Financials (18%)
Information Technology (18%)
Industrials (17%)
Health Care (10%)
Materials (9%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Corinthian Colleges Incorporated 4.58%
Family Dollar Stores Incorporated 4.39%
Diebold Incorporated 4.26%
International Flavors & Fragrances Incorporated 3.87%
Pilgrims Pride Corporation 3.66%
Harte-Hanks Incorporated 3.55%
Dover Corporation 3.52%
Briggs & Stratton Corporation 3.49%
Alpharma Incorporated 3.41%
Quest Diagnostics Incorporated 3.36%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 5
Performance Highlights
WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
C&B MID CAP FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (CBMAX) (19.66) (25.37) 9.21 9.36 (14.76) (20.82) 10.50 10.01 1.36% 1.40%
Class B (CBMBX)** (20.08) (26.40) 9.42 9.20 (15.08) (21.40) 9.70 9.20 2.11% 2.15%
Class C (CBMCX) (16.03) (22.39) 9.71 9.21 (15.03) (21.39) 9.71 9.21 2.11% 2.15%
Class D (CBMDX) (14.72) (20.73) 10.61 10.07 1.36% 1.25%
Administrator Class (CBMIX) (14.67) (20.63) 10.70 10.11 1.18% 1.15%
Institutional Class (CBMSX) (14.56) (20.43) 10.91 10.21 0.91% 0.90%
BENCHMARK
Russell Midcap(R) Value
Index(6) (9.20) (11.65) 16.44 8.86
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE PERIOD SHOWN. 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.
- ----------
(3) Class A, Class B, Class C, Institutional Class and Administrative Class
shares incepted on July 26, 2004. 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 for the Administrator Class and the
Institutional Class shares 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. Class D shares incepted on February 18,
1998.Performance shown prior to July 27, 2004 for the Class D shares
reflects the performance of the unnamed share class of the predecessor
fund.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell Midcap Value Index measures the performance of those Russell
Midcap companies with lower price-to-book ratios and lower forecasted
growth values. The stocks are also members of the Russell 1000(R) Value
Index. You cannot invest directly in an Index.
6 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
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Ann M. Miletti
FUND INCEPTION
December 29, 1989
SECTOR DISTRIBUTION1
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (20%)
Consumer Staples (5%)
Energy (13%)
Financials (11%)
Health Care (11%)
Industrials (12%)
Information Technology (19%)
Materials (7%)
Telecommunication Services (2%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Apache Corporation 2.48%
EOG Resources Incorporated 2.40%
Cameron International Corporation 1.97%
Republic Services Incorporated 1.96%
Smith International Incorporated 1.92%
Noble Corporation 1.83%
Ret Hat Incorporated 1.68%
Gatx Corporation 1.66%
Forest Oil Corporation 1.59%
Marshall Ilsley Corporation 1.58%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 7
Performance Highlights
WELLS FARGO ADVANTAGE COMMON STOCK FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN3 (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
COMMON STOCK FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- --------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (SCSAX) (12.24) (6.77) 13.36 7.33 (6.89) (1.09) 14.72 7.96 1.39% 1.31%
Class B (SCSKX)** (12.27) (6.83) 13.60 7.42 (7.27) (1.83) 13.84 7.42 2.14% 2.06%
Class C (STSAX) (8.28) (2.88) 13.83 7.25 (7.28) (1.88) 13.83 7.25 2.14% 2.06%
Class Z (STCSX) (6.88) (1.05) 14.84 8.19 1.56% 1.29%
BENCHMARK
Russell 2500(TM) Index(6) (10.90) (8.84) 14.91 7.42
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT
DEFERRED SALES CHARGE.
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.
- ----------
(3) Class A, Class B and Class C shares incepted on November 30, 2000.
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. Class Z shares incepted on
December 29, 1989. Performance shown prior to April 11, 2005 for the Class
Z shares reflects the performance of the Class Z shares of the predecessor
fund.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell 2500 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 Index. You cannot invest
directly in an Index.
8 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
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Jerome "Cam" Philpott, CFA
Stuart Roberts
FUND INCEPTION
December 30, 1994
SECTOR DISTRIBUTION1
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (16%)
Energy (6%)
Financials (4%)
Health Care (19%)
Industrials (23%)
Information Technology (24%)
Materials (2%)
Telecommunication Services (6%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
NII Holdings Incorporated 4.23%
VistaPrint Limited 3.78%
Textron Incorporated 3.29%
ITT Corporation 2.41%
Teletech Holdings Incorporated 2.38%
Gardner Denver Incorporated 2.37%
PMC - Sierrra Incorporated 2.28%
Microsemi Corporation 2.16%
FTI Consulting Incorporated 2.03%
Range Resources Corporation 1.93%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 9
Performance Highlights
WELLS FARGO ADVANTAGE MID CAP GROWTH FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
MID CAP GROWTH FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- -------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFMCX) (16.40) (3.82) 14.54 4.23 (11.30) 2.05 15.91 4.85 1.42% 1.40%
Class B (WFMBX)** (16.70) (3.84) 14.82 4.07 (11.70) 1.16 15.05 4.07 2.17% 2.15%
Class C (WFMHX) (12.71) 0.32 15.02 4.05 (11.71) 1.32 15.02 4.05 2.17% 2.15%
Class Z (WFMZX) (11.36) 1.91 15.73 4.70 1.59% 1.49%
Administrator Class (WMCGX) (11.30) 2.05 15.91 4.85 1.23% 1.15%
Institutional Class (WFMGX) (11.30) 2.05 15.91 4.85 0.97% 0.90%
BENCHMARK
Russell Midcap Growth Index(6) (8.44) (1.93) 15.29 5.75
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z, ADMINISTRATOR CLASS, AND INSTITUTIONAL CLASS SHARES ARE SOLD
WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
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.
- ----------
(3) Class A shares incepted on December 30, 1994. Class B and C shares incepted
on June 9, 2003. Performance of the Class B and Class C shares 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. Class Z shares incepted on April 11,
2005. Performance of the Class Z shares shown prior to the inception of the
Class Z shares reflects the performance of the Class A shares, adjusted to
reflect Class Z expenses. Administrator Class shares incepted on March 31,
2008. Performance shown for the Administrator Class shares reflects the
performance of the Class A shares and includes sales charges and expenses
that are not applicable to and are higher than those of the Administrator
Class shares. Institutional Class shares incepted on March 31, 2008.
Performance shown for the Institutional Class shares reflects the
performance of the Class A shares and includes sales charges and expenses
that are not applicable to and are higher than those of the Institutional
Class shares.
(4) For classes A, B, C, and Z, reflects the gross expense ratio as stated in
the March 1, 2008, prospectus. For the Administrator and Institutional
classes, this is the first fiscal year. These gross expense ratios as
stated in the April 1, 2008, prospectus are based on estimates for the
current fiscal year.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell Midcap Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000(R) Index.
You cannot invest directly in an Index.
10 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND
THE FUND IS CLOSED TO NEW INVESTORS.
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND (the Fund) seeks long-term
capital appreciation.
INVESTEMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Jerome "Cam" Philpott, CFA
Stuart Roberts
FUND INCEPTION
July 13, 1990
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (13%)
Energy (2%)
Financials (5%)
Health Care (17%)
Industrials (24%)
Information Technology (36%)
Telecommunication Services (3%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
VistaPrint Limited 3.42%
Skillsoft plc ADR 2.92%
InVentiv Health Incorporated 2.76%
Sciele Pharma Incorporated 2.38%
Resources Connection Incorporated 2.38%
Gardner Denver Incorporated 2.27%
Teletech Holdings Incorporated 2.24%
PMC Enterprises Incorporated 2.19%
Sykes Enterprises Incorporated 2.17%
Microsemi Corporation 2.07%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 11
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
SMALL CAP GROWTH FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- --------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (MNSCX) (22.09) (9.95) 14.11 2.25 (17.34) (4.45) 15.47 2.86 1.51% 1.40%
Class B (WMNBX)** (22.61) (10.18) 14.37 2.09 (17.61) (5.18) 14.61 2.09 2.26% 2.15%
Class C (WMNCX) (18.58) (6.17) 14.64 2.10 (17.58) (5.17) 14.64 2.10 2.26% 2.15%
Class Z (WFSZX) (17.31) (4.61) 15.29 2.69 1.68% 1.49%
Administrator Class (WMNIX) (17.22) (4.26) 15.69 2.95 1.33% 1.20%
Institutional Class (WFSIX) (17.07) (4.00) 15.91 3.05 1.06% 0.90%
BENCHMARK
Russell 2000(R) Growth Index(6) (14.14) (6.70) 13.33 2.20
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z, ADMINISTRATOR CLASS AND INSTITUTIONAL CLASS SHARES ARE SOLD
WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
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.
- ----------
(3) Class A shares incepted on July 13, 1990. Class B and Class C shares
incepted on June 9, 2003. Performance shown for Class B and Class C shares
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. Administrator Class shares
incepted on April 11, 2005. Prior to April 11, 2005, the Administrator
Class was named the Institutional Class. Performance shown for the
Administrator Class shares 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. Institutional
Class shares incepted on April 11, 2005. Performance shown for the
Institutional Class shares 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 for the Institutional
Class shares 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. Class Z shares incepted April 11,
2005. Performance shown for the Class Z shares prior to April 11, 2005
reflects the performance of the Class A shares, adjusted to reflect Class Z
expenses.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell 2000 Growth Index measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted
growth values. You cannot invest directly in an Index
12 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
Wells Fargo Funds Management, LLC
SUBADVISER
Schroder Investment Management North America Inc.
PORTFOLIO MANAGER
Jenny B. Jones
FUND INCEPTION
August 1, 1993
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (11%)
Consumer Staples (1%)
Energy (11%)
Financials (13%)
Health Care (13%)
Industrials (15%)
Information Technology (26%)
Materials (5%)
Telecommunication Services (2%)
Utilities (3%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
St Mary Land & Exploration Company 2.38%
Dresser Rand Group Incorporated 2.31%
Scientific Games Corporation Class A 2.23%
Reinsurance Group of America Incorporated 1.88%
Valueclick Incorporated 1.68%
Galleon Energy Incorporated Class A 1.64%
Bank of Hawaii Corporation 1.63%
Carbo Ceramics Incorporated 1.56%
GEO Group Incorporated 1.51%
Westamerica Bancorporation 1.50%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 13
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Expense Ratio
-----------------
SMALL CAP OPPORTUNITIES FUND 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ---------------------------- --------- ------ ------ ------- -------- ------
Administrator Class (NVSOX) (7.83) 0.00 19.14 10.30 1.31% 1.20%
BENCHMARK
Russell 2000 Index(6) (12.92) (10.96) 13.77 5.33
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
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.
- ----------
(3) Prior to April 11, 2005, the Administrator Class was named the
Institutional Class.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell 2000 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 Index. You cannot
invest directly in an Index.
14 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
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
I. Charles Rinaldi
FUND INCEPTION
December 31, 1997
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIECHART)
Energy (33%)
Materials (20%)
Industrials (12%)
Financials (10%)
Information Technology (9%)
Consumer Discretionary (7%)
Health Care (5%)
Consumer Staples (3%)
Telecommunication Services (1%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Randgold Resources Limited ADR 5.73%
Range Resources Corporation 5.24%
Goldcorp Incorporated 3.99%
Chicago Bridge & Iron Company NV New York Shares 3.49%
Global Industries Limited 3.04%
McMoran Exploration Company 3.00%
Champion Enterprises Incorporated 2.42%
Annaly Capital Management Incorporated 2.25%
Helmerich & Payne Incorporated 2.21%
Intermec Incorporated 2.21%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 15
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ----------------------------------- ----------------
SMALL CAP VALUE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------------------ --------- ------ ------ ------- --------- ------- ------ ------- -------- ------
Class A (SMVAX) (14.53) (6.51) 18.20 12.90 (9.32) (0.82) 19.60 13.57 1.44% 1.44%
Class B (SMVBX)** (14.65) (6.57) 18.50 13.01 (9.65) (1.57) 18.70 13.01 2.19% 2.19%
Class C (SMVCX) (10.66) (2.57) 18.71 12.85 (9.66) (1.57) 18.71 12.85 2.19% 2.19%
Class Z (SSMVX) (9.29) (0.75) 19.74 13.77 1.61% 1.36%
Institutional Class (WFSVX) (9.12) (0.45) 19.82 13.81 0.99% 0.95%
BENCHMARK
Russell 2000 Value Index(6) (11.55) (15.13) 14.08 7.74
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z 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. 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.
- ----------
(3) Class A, Class B, and Class C shares incepted on November 30, 2000.
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 Small Cap Value Fund, the
predecessor fund, adjusted to reflect Class A, Class B, Class C sales
charges, as applicable. 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. Class Z shares incepted
on December 31, 1997. Performance shown for Class Z shares prior to April
11, 2005 reflects the performance of Class Z shares of the predecessor
fund. Institutional Class shares incepted on July 31, 2007. Performance
shown for the Institutional Class shares reflects the performance of the
Class Z shares, and includes expenses that are not applicable to, and are
higher than those of the Institutional Class shares. The Class Z shares
annual returns are substantially similar to what the Institutional Class
share returns would be because the Class Z 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 Class Z shares reflects the performance of the
Class Z shares of the predecessor fund.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell 2000 Value Index measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
16 Wells Fargo Advantage Small and Mid Cap Stock Funds
Fund Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, redemption fees (if
any) and exchange fees (if any); and (2) ongoing costs, including management
fees; distribution (12b-1) and/or shareholder service fees; and other Fund
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
six-month period and held for the entire six-month period, from November 1, 2007
to April 30, 2008.
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the "Actual" line under the heading entitled "Expenses Paid During Period"
for your applicable class of shares to estimate the expenses you paid on your
account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
- ------------------------------------------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $ 852.40 $ 6.45 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
CLASS B
Actual $1,000.00 $ 849.20 $ 9.89 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS C
Actual $1,000.00 $ 849.70 $ 9.89 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS D
Actual $1,000.00 $ 852.80 $ 5.80 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.60 $ 6.32 1.25%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 853.30 $ 5.30 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,019.14 $ 5.77 1.15%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 854.40 $ 4.15 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,020.39 $ 4.52 0.90%
Wells Fargo Advantage Small and Mid Cap Stock Funds 17
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE COMMON STOCK FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
- ------------------------------------------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $ 931.10 $ 6.29 1.31%
Hypothetical (5% return before expenses) $1,000.00 $1,018.35 $ 6.57 1.31%
CLASS B
Actual $1,000.00 $ 927.30 $ 9.87 2.06%
Hypothetical (5% return before expenses) $1,000.00 $1,014.62 $10.32 2.06%
CLASS C
Actual $1,000.00 $ 927.30 $ 9.87 2.06%
Hypothetical (5% return before expenses) $1,000.00 $1,014.62 $10.32 2.06%
CLASS Z
Actual $1,000.00 $ 931.20 $ 6.19 1.29%
Hypothetical (5% return before expenses) $1,000.00 $1,018.45 $ 6.47 1.29%
WELLS FARGO ADVANTAGE MID CAP GROWTH FUND
CLASS A
Actual $1,000.00 $ 887.00 $ 6.57 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
CLASS B
Actual $1,000.00 $ 883.00 $10.07 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS C
Actual $1,000.00 $ 882.90 $10.07 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
ADMINISTRATOR CLASS(2)
Actual $1,000.00 $ 887.00 $ 0.89 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,003.16 $ 0.94 1.15%
INSTITUTIONAL CLASS(2)
Actual $1,000.00 $ 887.00 $ 0.70 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,003.36 $ 0.74 0.90%
CLASS Z
Actual $1,000.00 $ 886.40 $ 7.22 1.54%
Hypothetical (5% return before expenses) $1,000.00 $1,017.17 $ 7.72 1.54%
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND
CLASS A
Actual $1,000.00 $ 826.60 $ 6.36 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
CLASS B
Actual $1,000.00 $ 823.90 $ 9.75 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS C
Actual $1,000.00 $ 824.20 $ 9.75 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS Z
Actual $1,000.00 $ 826.90 $ 7.04 1.55%
Hypothetical (5% return before expenses) $1,000.00 $1,017.16 $ 7.77 1.55%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 827.80 $ 5.45 1.20%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.02 1.20%
18 Wells Fargo Advantage Small and Mid Cap Stock Funds
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND(continued) 11-01-2007 04-30-2008 Period(1) Expense Ratio
- ------------------------------------------------------- ------------- ------------- ----------- -------------
INSTITUTIONAL CLASS
Actual $1,000.00 $ 829.30 $ 4.09 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,020.39 $ 4.52 0.90%
WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND
ADMINISTRATOR CLASS
Actual $1,000.00 $ 921.70 $ 5.73 1.20%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.02 1.20%
WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND
CLASS A
Actual $1,000.00 $ 906.80 $ 6.83 1.44%
Hypothetical (5% return before expenses) $1,000.00 $1,017.70 $ 7.22 1.44%
CLASS B
Actual $1,000.00 $ 903.50 $10.36 2.19%
Hypothetical (5% return before expenses) $1,000.00 $1,013.97 $10.97 2.19%
CLASS C
Actual $1,000.00 $ 903.40 $10.36 2.19%
Hypothetical (5% return before expenses) $1,000.00 $1,013.97 $10.97 2.19%
CLASS Z
Actual $1,000.00 $ 907.10 $ 6.45 1.36%
Hypothetical (5% return before expenses) $1,000.00 $1,018.10 $ 6.82 1.36%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 908.80 $ 4.51 0.95%
Hypothetical (5% return before expenses) $1,000.00 $1,020.14 $ 4.77 0.95%
- ----------
(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).
(2) This Class commenced operations on March 31, 2008. Actual expenses shown
for this class are equal to the annualized expense ratio multiplied by the
average account value over the period, multiplied by 30/366 (to reflect the
period from March 31, 2008 to April 30, 2008).
Wells Fargo Advantage Small and Mid Cap Stock Funds 19
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 95.41%
AMUSEMENT & RECREATION SERVICES: 2.18%
249,875 INTERNATIONAL SPEEDWAY CORPORATION CLASS A $ 10,599,698
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS: 1.24%
380,635 JONES APPAREL GROUP INCORPORATED 6,025,452
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS: 2.36%
18,700 NVR INCORPORATED<<+ 11,472,450
------------
BUSINESS SERVICES: 5.43%
607,375 IMS HEALTH INCORPORATED 15,032,531
805,270 MONEYGRAM INTERNATIONAL INCORPORATED<< 1,248,169
580,697 PARAMETRIC TECHNOLOGY CORPORATION+ 10,121,549
26,402,249
------------
CHEMICALS & ALLIED PRODUCTS: 8.99%
642,570 ALPHARMA INCORPORATED CLASS A<<+ 15,813,648
394,395 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 17,988,356
453,555 VALSPAR CORPORATION 9,969,139
43,771,143
------------
DEPOSITORY INSTITUTIONS: 1.61%
161,415 CITY NATIONAL CORPORATION 7,831,856
------------
EDUCATIONAL SERVICES: 4.37%
1,875,600 CORINTHIAN COLLEGES INCORPORATED<<+ 21,288,060
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 7.54%
442,005 CYMER INCORPORATED<<+ 11,487,710
1,297,490 FLEXTRONICS INTERNATIONAL LIMITED+ 13,480,921
413,575 MOLEX INCORPORATED 11,737,259
36,705,890
------------
FOOD & KINDRED PRODUCTS: 3.49%
703,510 PILGRIMS PRIDE CORPORATION<< 17,003,837
------------
FURNITURE & FIXTURES: 2.09%
916,050 STEELCASE INCORPORATED 10,149,834
------------
GENERAL MERCHANDISE STORES: 4.19%
952,960 FAMILY DOLLAR STORES INCORPORATED 20,393,344
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 14.59%
1,065,861 BRIGGS & STRATTON CORPORATION<< 16,222,404
120,015 CARLISLE COMPANIES INCORPORATED 3,466,033
504,665 DIEBOLD INCORPORATED 19,782,868
330,825 DOVER CORPORATION 16,365,913
2,010,755 ENTEGRIS INCORPORATED<<+ 15,161,093
70,998,311
------------
INSURANCE AGENTS, BROKERS & SERVICE: 6.88%
634,530 ARTHUR J. GALLAGHER & COMPANY<< 15,590,402
219,240 UNUMPROVIDENT CORPORATION 5,088,560
369,115 WILLIS GROUP HOLDINGS LIMITED 12,826,746
33,505,708
------------
20 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
INSURANCE CARRIERS: 6.28%
251,030 MBIA INCORPORATED<< $ 2,610,712
129,860 RENAISSANCERE HOLDINGS LIMITED 6,679,998
342,375 STEWART INFORMATION SERVICES CORPORATION<< 8,384,764
27,080 WHITE MOUNTAIN INSURANCE GROUP LIMITED 12,892,788
30,568,262
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 3.21%
311,235 QUEST DIAGNOSTICS INCORPORATED 15,617,772
------------
MISCELLANEOUS RETAIL: 3.62%
506,915 OFFICE DEPOT INCORPORATED+ 6,427,682
539,425 ZALE CORPORATION<<+ 11,176,886
17,604,568
------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 2.42%
838,508 CAPITALSOURCE INCORPORATED<< 11,781,037
------------
PAPER & ALLIED PRODUCTS: 2.80%
518,936 BEMIS COMPANY INCORPORATED<< 13,648,017
------------
PERSONAL SERVICES: 2.20%
339,266 G & K SERVICES INCORPORATED CLASS A 10,697,057
------------
PRIMARY METAL INDUSTRIES: 1.71%
186,350 HUBBELL INCORPORATED CLASS B 8,335,436
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 3.39%
1,207,300 HARTE HANKS INCORPORATED<< 16,491,718
------------
TEXTILE MILL PRODUCTS: 2.50%
335,750 ALBANY INTERNATIONAL CORPORATION CLASS A 12,187,725
------------
WHOLESALE TRADE NON-DURABLE GOODS: 2.32%
457,110 HAIN CELESTIAL GROUP INCORPORATED<<+ 11,281,474
------------
TOTAL COMMON STOCKS (COST $551,471,132) 464,360,898
------------
COLLATERAL FOR SECURITIES LENDING: 25.46%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 1.50%
1,046,355 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,046,355
1,279,572 BLACKROCKTEMP FUND B #24 MONEY MARKET FUND 1,279,572
2,711,415 DAILY ASSETS FUND INSTITUTIONAL 2,711,415
2,249,453 DREYFUS CASH MANAGEMENT FUND 2,249,453
7,286,795
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 23.96%
$1,208,703 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 1,208,143
416,349 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 415,705
1,306,706 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 1,304,389
980,030 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 979,719
774,223 APRECO LLC++ 2.94 05/28/2008 772,532
2,740,816 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 2,740,816
653,353 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 652,728
816,691 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 815,959
Wells Fargo Advantage Small and Mid Cap Stock Funds 21
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$2,235,546 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,235,670) 2.00% 05/01/2008 $ 2,235,546
2,493,130 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,493,301) 2.47 05/01/2008 2,493,130
816,691 BANK OF IRELAND +++/- 3.06 10/14/2008 816,267
1,306,706 BANK OF SCOTLAND PLC 2.80 05/29/2008 1,303,871
8,769,076 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $8,769,563) 2.00 05/01/2008 8,769,076
653,353 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 651,994
671,157 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 669,672
653,353 CHARIOT FUNDING LLC++ 2.70 05/14/2008 652,716
653,353 CHARIOT FUNDING LLC++ 2.76 05/29/2008 651,956
1,732,825 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 1,247,634
1,332,682 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 959,531
416,349 CIESCO LLC++ 2.90 05/21/2008 415,713
963,696 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 961,250
3,270,032 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 3,270,032
2,450,074 CULLINAN FINANCE CORPORATION +++/- 2.51 08/04/2008 2,444,588
8,769,076 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $8,769,563) 2.00 05/01/2008 8,769,076
1,306,706 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 1,304,458
2,293,269 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 2,292,530
653,353 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 652,812
653,353 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 652,006
3,266,765 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 3,254,669
2,613,412 GALLEON CAPITAL LLC++ 2.90 05/21/2008 2,609,202
2,708,148 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 2,707,058
3,266,765 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 3,262,127
2,123,397 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 2,123,397
1,470,044 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 1,469,159
2,356,775 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 2,355,859
1,633,383 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 1,633,383
1,633,383 LINKS FINANCE LLC +++/- 2.52 08/15/2008 1,624,878
2,613,412 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $2,613,586) 2.40 05/01/2008 2,613,412
687,425 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 686,623
653,353 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 651,985
151,088 MORGAN STANLEY+/- 2.84 10/15/2008 150,967
1,480,988 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,481,070) 2.00 05/01/2008 1,480,988
2,989,090 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,989,290) 2.41 05/01/2008 2,989,090
1,306,706 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 1,305,141
1,633,383 NORTHERN ROCK PLC +++/- 2.79 10/03/2008 1,624,657
1,502,712 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 1,502,595
952,393 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 950,283
1,559,880 PICAROS FUNDING LLC++ 2.60 05/06/2008 1,559,317
653,353 PRUDENTIAL PLC++ 2.88 05/28/2008 651,947
2,613,412 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 2,613,202
22 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$1,334,474 REGENCY MARKETS #1 LLC++ 2.97% 05/20/2008 $ 1,332,382
1,306,706 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 1,304,326
457,347 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 457,140
816,691 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 815,398
653,353 SLM CORPORATION+++/- 2.73 05/12/2008 653,016
3,397,436 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 3,396,105
1,012,697 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 902,921
1,633,383 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 1,456,324
653,353 SWEDBANK MORTGAGE AB 2.95 05/27/2008 651,966
1,143,368 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 1,142,644
1,489,580 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 1,487,842
816,691 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 814,803
4,900,148 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 4,897,523
816,691 UNICREDITO ITALIANO BANK (IRELAND) +++/- 2.74 10/14/2008 816,185
816,691 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB +++/- 2.76 10/08/2008 816,255
1,404,709 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 1,252,439
816,691 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 728,162
1,633,383 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 1,497,812
2,286,736 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 2,286,004
116,633,035
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $125,662,384) 123,919,830
------------
SHARES
------
SHORT-TERM INVESTMENTS: 2.86%
13,913,831 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 13,913,831
------------
TOTAL SHORT-TERM INVESTMENTS (COST $13,913,831) 13,913,831
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $691,047,347)* 123.73% $602,194,559
OTHER ASSETS AND LIABILITIES, NET (23.73) (115,496,286)
------ ------------
TOTAL NET ASSETS 100.00% $486,698,273
------ ------------
<< All or a portion of this security is on loan.
+ Non-income earning securities.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ 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 $13,913,831.
* 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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 23
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 83.57%
AMUSEMENT & RECREATION SERVICES: 1.28%
315,000 International Speedway Corporation Class A $ 13,362,300
------------
APPAREL & ACCESSORY STORES: 2.50%
290,000 Kohl's Corporation+<< 14,166,500
335,000 Nordstrom Incorporated<< 11,812,100
25,978,600
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS: 1.18%
353,000 Advance Auto Parts Incorporated 12,242,040
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 1.22%
185,000 Ryder System Incorporated 12,666,950
------------
BUSINESS SERVICES: 6.46%
450,000 Amdocs Limited+ 14,121,000
355,000 Citrix Systems Incorporated+ 11,626,250
805,000 Convergys Corporation+ 12,654,600
640,000 Eclipsys Corporation+<< 13,292,800
755,000 Red Hat Incorporated+<< 15,530,350
67,225,000
------------
CHEMICALS & ALLIED PRODUCTS: 3.99%
440,000 Amylin Pharmaceuticals Incorporated+<< 12,135,200
255,000 Hospira Incorporated+<< 10,493,250
295,000 International Flavors & Fragrances Incorporated 13,454,950
234,601 Nalco Holding Company 5,393,477
41,476,877
------------
COMMUNICATIONS: 7.91%
525,000 Cablevision Systems Corporation New York Group Class A+ 12,075,000
370,000 Clear Channel Communications Incorporated<< 11,155,500
1,005,000 Foundry Networks Incorporated+<< 12,793,650
235,000 Liberty Media Corporation - Entertainment Class A+ 6,098,250
820,000 Liberty Media Corporation Interactive Series A+ 12,406,600
480,000 Neustar Incorporated Class A+<< 13,204,800
740,000 Time Warner Telecom Incorporated+<< 14,504,000
82,237,800
------------
COMPUTER TECHNOLOGIES: 1.34%
591,000 Metavante Technologies Incorporated+<< 13,929,870
------------
DEPOSITORY INSTITUTIONS: 4.36%
189,000 Citigroup Incorporated 4,776,030
262,000 City National Corporation 12,712,240
90,000 JPMorgan Chase & Company 4,288,500
583,207 Marshall & Ilsley Corporation<< 14,568,511
195,000 Zions Bancorporation 9,038,250
45,383,531
------------
E-COMMERCE/SERVICES: 1.29%
960,000 GSI Commerce Incorporated+<< 13,363,200
------------
24 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
ELECTRIC, GAS & SANITARY SERVICES: 1.74%
570,000 Republic Services Incorporated $ 18,120,300
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 3.88%
670,000 ALTERA CORPORATION 14,257,600
440,000 ENERSYS+ 10,296,000
526,000 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+ 6,859,040
442,000 TESSERA TECHNOLOGIES INCORPORATED+<< 8,946,080
40,358,720
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 1.31%
362,000 Accenture Limited Class A 13,593,100
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT: 1.33%
515,000 CROWN HOLDINGS INCORPORATED+ 13,822,600
------------
FOOD & KINDRED PRODUCTS: 1.18%
203,300 GENERAL MILLS INCORPORATED 12,279,320
------------
FOOD STORES: 1.38%
525,000 KROGER COMPANY<< 14,306,250
------------
FURNITURE & FIXTURES: 1.13%
505,000 HERMAN MILLER INCORPORATED 11,781,650
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES: 0.96%
380,000 WILLIAMS-SONOMA INCORPORATED<< 10,032,000
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 5.92%
370,000 CAMERON INTERNATIONAL CORPORATION+<< 18,215,100
400,000 CARLISLE COMPANIES INCORPORATED 11,552,000
285,000 DOVER CORPORATION 14,098,950
231,000 SMITH INTERNATIONAL INCORPORATED 17,673,810
61,539,860
------------
INSURANCE AGENTS, BROKERS & SERVICE: 1.24%
370,000 WILLIS GROUP HOLDINGS LIMITED 12,857,500
------------
INSURANCE CARRIERS: 2.47%
560,000 HCC INSURANCE HOLDINGS INCORPORATED 13,820,800
230,000 RENAISSANCERE HOLDINGS LIMITED 11,831,200
25,652,000
------------
LEATHER & LEATHER PRODUCTS: 0.70%
205,000 COACH INCORPORATED+ 7,291,850
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 4.66%
880,000 AFFYMETRIX INCORPORATED+<< 9,600,800
965,000 BOSTON SCIENTIFIC CORPORATION+ 12,863,450
225,000 THERMO FISHER SCIENTIFIC INCORPORATED+ 13,020,750
395,000 TRIMBLE NAVIGATION LIMITED+<< 12,952,050
48,437,050
------------
MEDICAL EQUIPMENT & SUPPLIES: 1.10%
245,000 VARIAN MEDICAL SYSTEMS INCORPORATED+<< 11,485,600
------------
METAL MINING: 1.03%
276,000 BARRICK GOLD CORPORATION<< 10,659,120
------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 25
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
MISCELLANEOUS RETAIL: 0.67%
173,000 CVS CAREMARK CORPORATION $ 6,984,010
------------
MOTION PICTURES: 1.32%
492,000 TIME WARNER CABLE INCORPORATED+<< 13,776,000
------------
OIL & GAS EXTRACTION: 7.37%
170,000 APACHE CORPORATION 22,895,600
170,000 EOG RESOURCES INCORPORATED 22,181,600
249,000 FOREST OIL CORPORATION+<< 14,673,570
300,000 NOBLE CORPORATION 16,884,000
76,634,770
------------
PAPER & ALLIED PRODUCTS: 1.10%
520,000 PACKAGING CORPORATION OF AMERICA 11,429,600
------------
PRIMARY METAL INDUSTRIES: 0.52%
155,000 ALCOA INCORPORATED 5,390,900
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 0.72%
291,317 INVESCO LIMITED 7,472,281
------------
TRANSPORTATION BY AIR: 0.98%
535,000 SKYWEST INCORPORATED 10,181,050
------------
TRANSPORTATION EQUIPMENT: 2.52%
218,000 AUTOLIV INCORPORATED 13,350,320
773,700 BRUNSWICK CORPORATION<< 12,905,316
26,255,636
------------
TRANSPORTATION SERVICES: 1.47%
348,000 GATX CORPORATION 15,312,000
------------
TRAVEL & RECREATION: 0.88%
228,800 CARNIVAL CORPORATION<< 9,190,894
------------
WHOLESALE TRADE NON-DURABLE GOODS: 3.35%
210,000 MCKESSON CORPORATION 10,945,200
445,000 SYSCO CORPORATION 13,603,650
290,000 TRACTOR SUPPLY COMPANY+<< 10,312,400
34,861,250
------------
WHOLESALE TRADE-DURABLE GOODS: 1.11%
425,000 ARROW ELECTRONICS INCORPORATED+<< 11,564,250
------------
TOTAL COMMON STOCKS (COST $729,684,399) 869,135,729
------------
UNITS MATURITY DATE
- ---------- -------------
EXCHANGEABLE NOTES: 1.82%
93,600 CARDINAL HEALTH INCORPORATED+++(J) 05/05/2008 4,842,303
533,000 CORNING INCORPORTATED MTN+(J) 05/29/2008 14,092,520
TOTAL EXCHANGEABLE NOTES (COST $18,467,649) 18,934,823
------------
26 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
INVESTMENT COMPANIES: 3.34%
STOCK FUNDS: 3.34%
90,000 MIDCAP SPDR TRUST SERIES 1<< $ 13,702,500
95,000 VANGUARD TOTAL STOCK MARKET ETF 13,063,450
95,000 VANGUARD UTILITIES ETF 7,956,250
TOTAL INVESTMENT COMPANIES (COST $34,817,413) 34,722,200
------------
COLLATERAL FOR SECURITIES LENDING: 12.46%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.73%
1,093,768 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,093,768
1,337,553 BLACKROCKTEMP B #24 MONEY MARKET FUND 1,337,553
2,834,277 DAILY ASSETS FUND INSTITUTIONAL 2,834,277
2,351,382 DREYFUS CASH MANAGEMENT FUND 2,351,382
------------
7,616,980
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 11.73%
$1,263,473 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 1,262,887
435,215 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 434,542
1,365,916 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 1,363,494
1,024,437 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 1,024,113
809,305 APRECO LLC++ 2.94 05/28/2008 807,537
2,865,010 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 2,865,010
682,958 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 682,305
853,698 BANCO SANTANDER TOTTA 2.73 10/15/2008 852,932
2,336,844 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,336,974) 2.00 05/01/2008 2,336,844
2,606,100 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,606,279) 2.47 05/01/2008 2,606,100
853,698 BANK OF IRELAND +++/- 3.06 10/14/2008 853,254
1,365,916 BANK OF SCOTLAND PLC 2.80 05/29/2008 1,362,952
9,166,426 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY 2.00 05/01/2008 9,166,426
VALUE $9,166,935)
682,958 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 681,538
701,569 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 700,017
682,958 CHARIOT FUNDING LLC++ 2.70 05/14/2008 682,292
682,958 CHARIOT FUNDING LLC++ 2.76 05/29/2008 681,497
1,811,344 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 1,304,167
1,393,069 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 1,003,010
435,215 CIESCO LLC++ 2.90 05/21/2008 434,550
1,007,363 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 1,004,807
3,418,206 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 3,418,206
2,561,093 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 2,555,359
9,166,426 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $9,166,935) 2.00 05/01/2008 9,166,426
1,365,916 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 1,363,566
2,397,183 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 2,396,411
682,958 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 682,393
682,958 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 681,550
3,414,791 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 3,402,146
Wells Fargo Advantage Small and Mid Cap Stock Funds 27
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$2,731,833 GALLEON CAPITAL LLC++ 2.90% 05/21/2008 $ 2,727,431
2,830,862 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 2,829,722
3,414,791 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 3,409,942
2,219,614 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 2,219,614
1,536,656 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 1,535,731
2,463,567 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 2,462,609
1,707,395 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 1,707,395
1,707,395 LINKS FINANCE LLC+++/- 2.52 08/15/2008 1,698,505
2,731,833 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $2,732,015) 2.40 05/01/2008 2,731,833
718,574 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 717,736
682,958 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 681,528
157,934 MORGAN STANLEY+/- 2.84 10/15/2008 157,808
1,548,095 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,548,181) 2.00 05/01/2008 1,548,095
3,124,534 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $3,124,743) 2.41 05/01/2008 3,124,534
1,365,916 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 1,364,280
1,707,395 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 1,698,275
1,570,804 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 1,570,682
995,548 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 993,343
1,630,563 PICAROS FUNDING LLC++ 2.60 05/06/2008 1,629,974
682,958 PRUDENTIAL PLC++ 2.88 05/28/2008 681,488
2,731,833 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 2,731,613
1,394,942 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 1,392,756
1,365,916 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 1,363,429
478,071 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 477,854
853,698 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 852,346
682,958 SLM CORPORATION+++/- 2.73 05/12/2008 682,606
3,551,383 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 3,549,992
1,058,585 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 943,835
1,707,395 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 1,522,314
682,958 SWEDBANK MORTGAGE AB 2.95 05/27/2008 681,508
1,195,177 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 1,194,420
1,557,076 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 1,555,260
853,698 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 851,724
5,122,186 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 5,119,443
853,698 UNICREDITO ITALIANO BANK (IRELAND)+++/- 2.74 10/14/2008 853,168
853,698 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 853,242
1,468,360 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 1,309,190
853,698 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 761,157
1,707,395 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 1,565,682
2,390,354 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 2,389,585
121,917,980
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $131,111,695) 129,534,960
------------
28 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ----------- ---------------------------------------------------------------- ------------- ------------- --------------
SHORT-TERM INVESTMENTS: 11.24%
113,948,622 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## $ 113,948,622
--------------
US TREASURY BILLS: 0.29%
3,000,000 US TREASURY BILL<<@ 1.30% 07/03/2008 2,993,385
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $116,941,797) 116,942,007
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,031,022,953)* 112.43% $1,169,269,719
OTHER ASSETS AND LIABILITIES, NET (12.43) (129,312,217)
------ --------------
TOTAL NET ASSETS 100.00% $1,039,957,502
------ --------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
(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 (orthe cash equivalent). The index value and maturity
date are both defined in the terms of the note.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ 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 $113,948,622.
@ Zero coupon bond. Interest rate presented is yield to maturity.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 29
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 94.24%
AMUSEMENT & RECREATION SERVICES: 1.21%
49,700 WMS INDUSTRIES INCORPORATED+<< $ 1,798,643
-----------
APPAREL & ACCESSORY STORES: 2.13%
31,800 GUESS? INCORPORATED 1,217,304
45,900 PHILLIPS-VAN HEUSEN CORPORATION 1,937,439
3,154,743
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS: 0.97%
41,400 ADVANCE AUTO PARTS INCORPORATED 1,435,752
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 1.69%
76,039 WRIGHT EXPRESS CORPORATION+<< 2,509,287
-----------
BIOPHARMACEUTICALS: 1.53%
14,300 CELGENE CORPORATION+ 888,602
19,500 GENZYME CORPORATION+ 1,371,825
2,260,427
-----------
BUSINESS SERVICES: 11.57%
20,600 ALLIANCE DATA SYSTEMS CORPORATION+<< 1,182,646
54,800 AUTODESK INCORPORATED+ 2,082,400
79,300 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 2,557,425
69,358 DEALERTRACK HOLDINGS INCORPORATED+<< 1,334,448
83,300 GARTNER INCORPORATED+ 1,909,236
20,700 LAMAR ADVERTISING COMPANY CLASS A+<< 818,478
256,400 LAWSON SOFTWARE INCORPORATED+<< 2,048,636
34,000 MONSTER WORLDWIDE INCORPORATED+ 827,220
144,777 TELETECH HOLDINGS INCORPORATED+ 3,319,737
53,598 VALUECLICK INCORPORATED+<< 1,069,280
17,149,506
-----------
CASINO & GAMING: 1.35%
10,354 MGM MIRAGE+<< 529,607
34,500 PENN NATIONAL GAMING INCORPORATED+ 1,473,840
2,003,447
-----------
CHEMICALS & ALLIED PRODUCTS: 8.14%
22,800 BARR PHARMACEUTICALS INCORPORATED+ 1,145,244
30,200 BIOMARIN PHARMACEUTICAL INCORPORATED+<< 1,101,092
50,800 ECOLAB INCORPORATED 2,334,768
58,700 FOREST LABORATORIES INCORPORATED+ 2,037,477
29,700 IMCLONE SYSTEMS INCORPORATED+ 1,385,505
38,300 INVERNESS MEDICAL INNOVATIONS INCORPORATED+<< 1,417,100
45,500 SHIRE PLC ADR<< 2,499,770
9,000 ZEP INCORPORATED 133,380
12,054,336
-----------
COMMUNICATIONS: 6.72%
10,000 EQUINIX INCORPORATED+<< 904,200
129,074 NII HOLDINGS INCORPORATED+ 5,903,845
54,200 SAVVIS INCORPORATED+<< 794,030
72,800 SBA COMMUNICATIONS CORPORATION CLASS A+ 2,354,352
9,956,427
-----------
30 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
E-COMMERCE/SERVICES: 0.87%
10,100 PRICELINE.COM INCORPORATED+<< $ 1,289,164
-----------
EDUCATIONAL SERVICES: 0.89%
25,900 APOLLO GROUP INCORPORATED CLASS A+<< 1,318,310
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 9.54%
19,300 ACUITY BRANDS INCORPORATED 923,312
27,100 DOLBY LABORATORIES INCORPORATED CLASS A+ 1,088,065
84,000 INTERSIL CORPORATION CLASS A 2,244,480
123,058 MICROSEMI CORPORATION+<< 3,014,921
410,100 PMC-SIERRA INCORPORATED+ 3,186,477
21,900 ROCKWELL COLLINS INCORPORATED 1,382,109
37,300 SILICON LABORATORIES INCORPORATED+ 1,259,621
40,000 SOLERA HOLDINGS INCORPORATED+ 1,032,400
14,131,385
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 7.02%
45,678 ADVISORY BOARD COMPANY+<< 2,129,508
28,900 GEN-PROBE INCORPORATED+ 1,628,804
17,800 IHS INCORPORATED+<< 1,175,690
117,169 RESOURCES CONNECTION INCORPORATED+<< 2,367,985
28,300 URS CORPORATION+ 1,141,622
33,300 WATSON WYATT & COMPANY HOLDINGS 1,952,046
10,395,655
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 1.90%
39,400 GAYLORD ENTERTAINMENT COMPANY+<< 1,167,028
33,700 VAIL RESORTS INCORPORATED+<< 1,645,571
2,812,599
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 2.23%
71,312 GARDNER DENVER INCORPORATED+ 3,312,442
-----------
LEGAL SERVICES: 1.91%
44,328 FTI CONSULTING INCORPORATED+<< 2,836,992
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 7.95%
14,700 BECKMAN COULTER INCORPORATED 1,004,010
15,800 C.R. BARD INCORPORATED 1,487,886
28,700 DENTSPLY INTERNATIONAL INCORPORATED 1,115,569
14,400 DRS TECHNOLOGIES INCORPORATED 899,136
85,160 HOLOGIC INCORPORATED+<< 2,485,820
19,300 METTLER-TOLEDO INTERNATIONAL INCORPORATED+ 1,838,518
46,900 PERKINELMER INCORPORATED 1,245,664
33,378 VARIAN INCORPORATED+ 1,699,942
11,776,545
-----------
MEDICAL EQUIPMENT & SUPPLIES: 0.93%
29,400 VARIAN MEDICAL SYSTEMS INCORPORATED+<< 1,378,272
-----------
MEDICAL PRODUCTS: 1.06%
21,100 ZIMMER HOLDINGS INCORPORATED+ 1,564,776
-----------
MOTION PICTURES: 1.28%
98,900 NATIONAL CINEMEDIA INCORPORATED<< 1,894,924
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 31
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
OIL & GAS EXTRACTION: 5.34%
46,500 HELMERICH & PAYNE INCORPORATED<< $ 2,499,375
29,100 NOBLE CORPORATION 1,637,748
45,900 PETROHAWK ENERGY CORPORATION+ 1,085,076
40,550 RANGE RESOURCES CORPORATION 2,691,709
7,913,908
------------
PERSONAL SERVICES: 1.09%
35,200 WEIGHT WATCHERS INTERNATIONAL INCORPORATED<< 1,614,272
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 3.56%
154,936 VISTAPRINT LIMITED+<< 5,272,472
------------
REAL ESTATE: 1.65%
105,930 CB RICHARD ELLIS GROUP INCORPORATED CLASS A+<< 2,449,102
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 1.76%
11,100 INTERCONTINENTAL EXCHANGE INCORPORATED+ 1,722,165
22,600 LAZARD LIMITED<< 884,564
2,606,729
------------
THEATERS & ENTERTAINMENT: 1.39%
108,800 REGAL ENTERTAINMENT GROUP CLASS A<< 2,062,848
------------
TRANSPORTATION EQUIPMENT: 6.78%
52,600 ITT CORPORATION 3,366,400
26,300 OSHKOSH TRUCK CORPORATION 1,067,780
21,900 POLARIS INDUSTRIES INCORPORATED 1,019,445
75,200 TEXTRON INCORPORATED 4,587,952
10,041,577
------------
TRAVEL & RECREATION: 0.60%
35,200 EXPEDIA INCORPORATED+ 889,152
------------
WHOLESALE TRADE-DURABLE GOODS: 1.18%
51,000 PATTERSON COMPANIES INCORPORATED+ 1,744,200
TOTAL COMMON STOCKS (COST $138,231,810) 139,627,892
------------
COLLATERAL FOR SECURITIES LENDING: 27.84%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 1.64%
348,338 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 348,338
425,978 BLACKROCKTEMP B #24 MONEY MARKET FUND 425,978
902,648 DAILY ASSETS FUND INSTITUTIONAL 902,648
748,857 DREYFUS CASH MANAGEMENT FUND 748,857
2,425,821
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 26.20%
$402,385 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 402,199
138,605 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 138,391
435,011 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 434,239
326,258 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 326,155
257,744 APRECO LLC++ 2.94 05/28/2008 257,181
912,435 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 912,435
32 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 217,505 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87% 05/13/2008 $ 217,297
271,882 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 271,638
744,228 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $744,269) 2.00 05/01/2008 744,228
829,979 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $830,036) 2.47 05/01/2008 829,979
271,882 BANK OF IRELAND+++/- 3.06 10/14/2008 271,740
435,011 BANK OF SCOTLAND PLC 2.80 05/29/2008 434,067
2,919,282 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $2,919,444) 2.00 05/01/2008 2,919,282
217,505 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 217,053
223,432 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 222,938
217,505 CHARIOT FUNDING LLC++ 2.70 05/14/2008 217,293
217,505 CHARIOT FUNDING LLC++ 2.76 05/29/2008 217,040
576,869 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 415,345
443,658 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 319,434
138,605 CIESCO LLC++ 2.90 05/21/2008 138,394
320,821 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 320,006
1,088,615 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 1,088,615
815,645 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 813,819
2,919,282 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,919,444) 2.00 05/01/2008 2,919,282
435,011 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 434,262
763,444 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 763,198
217,505 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 217,325
217,505 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 217,057
1,087,527 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 1,083,500
870,022 GALLEON CAPITAL LLC++ 2.90 05/21/2008 868,620
901,560 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 901,197
1,087,527 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 1,085,983
706,893 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 706,893
489,387 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 489,093
784,586 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 784,281
543,764 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 543,764
543,764 LINKS FINANCE LLC+++/- 2.52 08/15/2008 540,932
870,022 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT -
102% COLLATERALIZED (MATURITY VALUE $870,080) 2.40 05/01/2008 870,022
228,848 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 228,581
217,505 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 217,050
50,298 MORGAN STANLEY+/- 2.84 10/15/2008 50,258
493,030 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $493,057) 2.00 05/01/2008 493,030
995,087 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $995,154) 2.41 05/01/2008 995,087
435,011 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 434,490
543,764 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 540,859
500,263 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 500,224
317,058 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 316,355
519,294 PICAROS FUNDING LLC++ 2.60 05/06/2008 519,107
Wells Fargo Advantage Small and Mid Cap Stock Funds 33
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 217,505 PRUDENTIAL PLC++ 2.88% 05/28/2008 $ 217,037
870,022 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 869,952
444,255 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 443,559
435,011 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 434,219
152,254 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 152,185
271,882 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 271,451
217,505 SLM CORPORATION+++/- 2.73 05/12/2008 217,393
1,131,028 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 1,130,585
337,133 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 300,588
543,764 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 484,820
217,505 SWEDBANK MORTGAGE AB 2.95 05/27/2008 217,044
380,635 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 380,393
495,891 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 495,312
271,882 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 271,253
1,631,291 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 1,630,417
271,882 UNICREDITO ITALIANO BANK (IRELAND)+++/- 2.74 10/14/2008 271,713
271,882 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 271,737
467,637 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 416,945
271,882 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 242,410
543,764 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 498,631
761,269 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 761,027
38,827,889
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $41,728,496) 41,253,710
------------
SHARES
- ----------
RIGHTS: 0.00%
31,200 SEAGATE TECHNOLOGY RIGHTS+(A)(I) 0
TOTAL RIGHTS (COST $0) 0
------------
SHORT-TERM INVESTMENTS: 5.39%
7,977,326 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 7,977,326
------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,977,326) 7,977,326
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $187,937,632)* 127.47% $188,858,928
OTHER ASSETS AND LIABILITIES, NET (27.47) (40,698,206)
------ ------------
TOTAL NET ASSETS 100.00% $148,160,722
------ ------------
34 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ 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 $7,977,326.
* 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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 35
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
COMMON STOCKS: 95.87%
AMUSEMENT & RECREATION SERVICES: 1.19%
133,200 WMS INDUSTRIES INCORPORATED+<< $ 4,820,508
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 1.69%
207,513 WRIGHT EXPRESS CORPORATION+<< 6,847,929
------------
BIOPHARMACEUTICALS: 0.59%
179,026 APPLERA CORPORATION-CELERA GROUP+<< 2,395,368
------------
BUSINESS SERVICES: 21.76%
45,788 BANKRATE INCORPORATED+<< 2,391,965
187,045 DEALERTRACK HOLDINGS INCORPORATED+<< 3,598,746
94,800 DIGITAL RIVER INCORPORATED+<< 3,114,180
224,100 EPICOR SOFTWARE CORPORATION+ 1,792,800
135,700 FORRESTER RESEARCH INCORPORATED+<< 3,913,588
221,000 GARTNER INCORPORATED+<< 5,065,320
609,480 GLOBAL CASH ACCESS INCORPORATED+<< 3,766,586
349,563 INTERNAP NETWORK SERVICES+<< 1,681,398
637,400 LAWSON SOFTWARE INCORPORATED+<< 5,092,826
484,781 MARCHEX INCORPORATED CLASS B<< 5,007,788
854,819 ON ASSIGNMENT INCORPORATED+<< 6,009,378
231,400 RSC HOLDINGS INCORPORATED+<< 2,138,136
539,558 SECURE COMPUTING CORPORATION+<< 3,571,874
179,651 SI INTERNATIONAL INCORPORATED+ 4,121,194
1,127,765 SKILLSOFT PLC ADR+ 11,334,038
506,147 SYKES ENTERPRISES INCORPORATED+<< 8,412,163
124,200 SYNCHRONOSS TECHNOLOGIES INCORPORATED+<< 2,592,054
378,736 TELETECH HOLDINGS INCORPORATED+ 8,684,416
250,409 THE KNOT INCORPORATED+<< 2,939,802
140,267 VALUECLICK INCORPORATED+ 2,798,327
88,026,579
------------
CASINO & GAMING: 0.63%
165,200 PINNACLE ENTERTAINMENT INCORPORATED+<< 2,563,904
------------
CHEMICALS & ALLIED PRODUCTS: 3.40%
85,150 INVERNESS MEDICAL INNOVATIONS INCORPORATED+<< 3,150,550
151,500 NOVEN PHARMACEUTICALS INCORPORATED+ 1,378,650
479,393 SCIELE PHARMA INCORPORATED+<< 9,237,903
13,767,103
------------
COMMUNICATIONS: 4.54%
81,200 CBEYOND INCORPORATED+<< 1,602,888
562,500 CENTENNIAL COMMUNICATIONS CORPORATION+ 3,408,750
183,800 LIVE NATION INCORPORATED+<< 2,534,602
251,007 LODGENET ENTERTAINMENT CORPORATION+<< 1,536,163
353,827 NOVATEL WIRELESS INCORPORATED+<< 3,156,137
609,400 PAETEC HOLDING CORPORATION+<< 4,698,474
98,200 SAVVIS INCORPORATED+<< 1,438,630
18,375,644
------------
E-COMMERCE/SERVICES: 1.67%
486,100 GSI COMMERCE INCORPORATED+<< 6,766,512
------------
EATING & DRINKING PLACES: 0.36%
124,900 TEXAS ROADHOUSE INCORPORATED CLASS A+<< 1,473,820
------------
36 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 11.62%
51,900 ACUITY BRANDS INCORPORATED $ 2,482,896
399,400 INFORMATION SERVICES GROUP INCORPORATED+<< 2,068,892
327,714 MICROSEMI CORPORATION+<< 8,028,993
1,092,300 PMC-SIERRA INCORPORATED+ 8,487,171
105,200 POLYPORE INTERNATIONAL INCORPORATED+ 2,462,732
133,042 POWER INTEGRATIONS INCORPORATED+ 4,146,919
74,100 REGAL-BELOIT CORPORATION 2,748,369
99,500 SILICON LABORATORIES INCORPORATED+ 3,360,115
270,390 SOLERA HOLDINGS INCORPORATED+ 6,978,766
95,409 SYNAPTICS INCORPORATED+<< 3,238,181
98,229 UNIVERSAL DISPLAY CORPORATION+<< 1,452,807
57,900 ZOLTEK COMPANIES INCORPORATED+<< 1,544,193
47,000,034
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 6.47%
122,888 ADVISORY BOARD COMPANY+ 5,729,039
354,194 EXELIXIS INCORPORATED+ 2,695,416
35,600 IHS INCORPORATED+<< 2,351,380
46,936 NAVIGANT CONSULTING INCORPORATED+ 944,352
456,472 RESOURCES CONNECTION INCORPORATED+<< 9,225,299
88,900 WATSON WYATT & COMPANY HOLDINGS 5,211,318
26,156,804
------------
FINANCIAL INSTITUTIONS: 0.62%
116,200 DOLLAR FINANCIAL CORPORATION+<< 2,507,596
------------
FOOD & KINDRED PRODUCTS: 0.46%
308,020 SENOMYX INCORPORATED+<< 1,848,120
------------
HEALTH SERVICES: 3.03%
66,600 CARDIONET INCORPORATED+ 1,538,460
360,068 INVENTIV HEALTH INCORPORATED+<< 10,704,822
12,243,282
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES: 0.54%
211,900 HHGREGG INCORPORATED+<< 2,176,213
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 2.36%
105,468 GAYLORD ENTERTAINMENT COMPANY+<< 3,123,962
553,700 GREAT WOLF RESORTS INCORPORATED+<< 3,383,107
62,300 VAIL RESORTS INCORPORATED+<< 3,042,109
9,549,178
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 4.77%
200,390 ACTUANT CORPORATION CLASS A<< 6,787,209
189,884 GARDNER DENVER INCORPORATED+ 8,820,112
70,800 KAYDON CORPORATION<< 3,707,796
19,315,117
------------
INSURANCE AGENTS, BROKERS & SERVICE: 0.71%
106,502 EHEALTH INCORPORATED+<< 2,880,879
------------
INSURANCE CARRIERS: 2.27%
194,700 FIRST MERCURY FINANCIAL CORPORATION+ 3,076,260
49,837 THE NAVIGATORS GROUP INCORPORATED+ 2,442,013
155,450 TOWER GROUP INCORPORATED 3,651,521
9,169,794
------------
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS 37
PORTFOLIO OF INVESTMENTS--APRIL 30, 2008 (UNAUDITED)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
LEGAL SERVICES: 1.36%
85,981 FTI CONSULTING INCORPORATED+<< $ 5,502,784
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 9.34%
39,300 DRS TECHNOLOGIES INCORPORATED 2,453,892
64,900 ESTERLINE TECHNOLOGIES CORPORATION+ 3,612,334
230,200 EV3 INCORPORATED+<< 1,912,962
658,080 IXIA+<< 4,665,787
52,900 MENTOR CORPORATION<< 1,548,383
236,669 SENORX INCORPORATED+ 1,727,684
182,800 SIRONA DENTAL SYSTEMS INCORPORATED+<< 4,893,556
143,793 SONOSITE INCORPORATED+<< 4,585,559
344,955 SPECTRANETICS CORPORATION+ 3,711,716
288,967 SYMMETRY MEDICAL INCORPORATED+ 4,054,207
90,970 VARIAN INCORPORATED+ 4,633,102
37,799,182
------------
MEDICAL EQUIPMENT & SUPPLIES: 0.76%
185,362 PSS WORLD MEDICAL INCORPORATED+<< 3,052,912
------------
MEDICAL PRODUCTS: 0.92%
313,250 VOLCANO CORPORATION+ 3,705,748
------------
MOTION PICTURES: 1.77%
260,960 CINEMARK HOLDINGS INCORPORATED<< 3,864,818
172,600 NATIONAL CINEMEDIA INCORPORATED<< 3,307,016
7,171,834
------------
OIL & GAS EXTRACTION: 2.10%
136,800 CONCHO RESOURCES INCORPORATED+ 3,771,576
73,200 GOODRICH PETROLEUM CORPORATION+<< 2,472,696
94,830 PETROHAWK ENERGY CORPORATION+<< 2,241,781
8,486,053
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 6.08%
389,431 INNERWORKINGS INCORPORATED+<< 5,233,953
373,518 SHUTTERFLY INCORPORATED+<< 6,107,019
389,337 VISTAPRINT LIMITED+<< 13,249,138
24,590,110
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 1.37%
138,324 EVERCORE PARTNERS INCORPORATED CLASS A<< 2,332,143
77,725 FCSTONE GROUP INCORPORATED+<< 3,219,370
5,551,513
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 0.31%
56,900 APOGEE ENTERPRISES INCORPORATED 1,269,439
------------
TEXTILE MILL PRODUCTS: 0.71%
223,900 INTERFACE INCORPORATED 2,874,876
------------
TRANSPORTATION EQUIPMENT: 0.69%
59,800 POLARIS INDUSTRIES INCORPORATED<< 2,783,690
------------
TRANSPORTATION SERVICES: 0.90%
68,900 HUB GROUP INCORPORATED CLASS A+ 2,252,341
174,200 ORBITZ WORLDWIDE INCORPORATED+<< 1,384,890
3,637,231
------------
38 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
WHOLESALE TRADE-DURABLE GOODS: 0.88%
184,466 INTERLINE BRANDS INCORPORATED+ $ 3,569,415
------------
TOTAL COMMON STOCKS (COST $425,336,697) 387,879,171
------------
COLLATERAL FOR SECURITIES LENDING: 39.85%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 2.34%
1,361,186 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,361,186
1,664,575 BLACKROCKTEMP B #24 MONEY MARKET FUND 1,664,575
3,527,236 DAILY ASSETS FUND INSTITUTIONAL 3,527,236
2,926,277 DREYFUS CASH MANAGEMENT FUND 2,926,277
9,479,274
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS: 37.51%
$1,572,382 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 1,571,654
541,622 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 540,784
1,699,873 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 1,696,858
1,274,904 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 1,274,501
1,007,175 APRECO LLC++ 2.94 05/28/2008 1,004,974
3,565,483 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 3,565,483
849,936 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 849,123
1,062,420 BANCO SANTANDER TOTTA 2.73 10/15/2008 1,061,467
2,908,185 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,908,347) 2.00 05/01/2008 2,908,185
3,243,272 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $3,243,495) 2.47 05/01/2008 3,243,272
1,062,420 BANK OF IRELAND ++ +/- 3.06 10/14/2008 1,061,868
1,699,873 BANK OF SCOTLAND PLC 2.80 05/29/2008 1,696,184
11,407,547 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $11,408,181) 2.00 05/01/2008 11,407,547
849,936 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 848,168
873,097 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 871,165
849,936 CHARIOT FUNDING LLC++ 2.70 05/14/2008 849,108
849,936 CHARIOT FUNDING LLC++ 2.76 05/29/2008 848,118
2,254,203 CHEYNE FINANCE LLC++ +/-(A)(I)@@ 6.40 02/25/2008 1,623,026
1,733,664 CHEYNE FINANCE LLC++ +/-(A)(I)@@ 6.48 05/19/2008 1,248,238
541,622 CIESCO LLC++ 2.90 05/21/2008 540,794
1,253,656 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 1,250,475
4,253,931 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 4,253,931
3,187,261 CULLINAN FINANCE++ +/- 2.51 08/04/2008 3,180,125
11,407,547 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $11,408,181) 2.00 05/01/2008 11,407,547
1,699,873 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 1,696,947
2,983,276 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 2,982,315
849,936 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 849,233
849,936 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 848,183
4,249,681 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 4,233,945
3,399,745 GALLEON CAPITAL LLC++ 2.90 05/21/2008 3,394,268
3,522,986 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 3,521,567
4,249,681 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 4,243,647
Wells Fargo Advantage Small and Mid Cap Stock Funds 39
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS: 37.51%
$2,762,293 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79% 10/16/2008 $ 2,762,293
1,912,357 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 1,911,205
3,065,890 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 3,064,698
2,124,841 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 2,124,841
2,124,841 LINKS FINANCE LLC++ +/- 2.52 08/15/2008 2,113,777
3,399,745 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $3,399,972) 2.40 05/01/2008 3,399,745
894,260 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 893,217
849,936 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 848,156
196,548 MORGAN STANLEY+/- 2.84 10/15/2008 196,391
1,926,593 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,926,700) 2.00 05/01/2008 1,926,593
3,888,459 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $3,888,719) 2.41 05/01/2008 3,888,459
1,699,873 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 1,697,836
2,124,841 NORTHERN ROCK PLC++ +/- 2.79 10/03/2008 2,113,490
1,954,853 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 1,954,701
1,238,952 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 1,236,208
2,029,223 PICAROS FUNDING LLC++ 2.60 05/06/2008 2,028,490
849,936 PRUDENTIAL PLC++ 2.88 05/28/2008 848,107
3,399,745 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 3,399,471
1,735,995 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 1,733,274
1,699,873 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 1,696,777
594,955 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 594,686
1,062,420 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 1,060,738
849,936 SLM CORPORATION++ +/- 2.73 05/12/2008 849,498
4,419,669 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 4,417,938
1,317,401 STANFIELD VICTORIA FUNDING LLC++ +/-(A)(I)@@ 5.27 04/03/2008 1,174,595
2,124,841 STANFIELD VICTORIA FUNDING LLC++ +/-(A)(I)@@ 5.47 02/15/2008 1,894,508
849,936 SWEDBANK MORTGAGE AB 2.95 05/27/2008 848,132
1,487,389 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 1,486,447
1,937,770 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 1,935,509
1,062,420 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 1,059,964
6,374,522 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 6,371,107
1,062,420 UNICREDITO ITALIANO BANK (IRELAND)++ +/- 2.74 10/14/2008 1,061,762
1,062,420 UNICREDITO ITALIANO BANK (IRELAND) SERIESLIB++ +/- 2.76 10/08/2008 1,061,853
1,827,363 VICTORIA FINANCE LLC++ +/-(A)(I)@@ 2.60 07/28/2008 1,629,277
1,062,420 VICTORIA FINANCE LLC++ +/-(A)(I)@@ 2.84 08/07/2008 947,254
2,124,841 WHITE PINE FINANCE LLC++ +/-(A)(I)@@ 5.43 02/22/2008 1,948,479
2,974,777 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 2,973,825
151,726,001
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $163,013,104) 161,205,275
------------
40 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------------------------ ------------
WARRANTS: 0.00%
108 IMPERIAL CREDIT INDUSTRY+(A)(I) $ 0
TOTAL WARRANTS (COST $0) 0
------------
SHORT-TERM INVESTMENTS: 4.49%
18,156,795 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 18,156,795
------------
TOTAL SHORT-TERM INVESTMENTS (COST $18,156,795) 18,156,795
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $606,506,596)* 140.21% $567,241,241
OTHER ASSETS AND LIABILITIES, NET (40.21) (162,685,284)
------------
TOTAL NET ASSETS 100.00% $404,555,957
------------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ 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.
## Short-term security of an affiliate of the Fund with a cost of $18,156,795.
* 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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 41
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 90.29%
APPAREL & ACCESSORY STORES: 1.27%
533,200 CASUAL MALE RETAIL GROUP INCORPORATED<<+ $ 2,303,424
318,500 CHILDREN'S PLACE RETAIL STORES INCORPORATED<<+ 7,405,125
9,708,549
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 0.58%
207,200 STANDARD PARKING CORPORATION<<+ 4,440,296
-----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS: 0.57%
841,400 CENTRAL GARDEN & PET COMPANY<<+ 4,333,210
-----------
BUSINESS SERVICES: 11.83%
492,500 ASPEN TECHNOLOGY INCORPORATED+ 6,766,950
159,400 BRIGHT HORIZONS FAMILY SOLUTIONS INCORPORATED+ 7,557,154
113,700 CONSTANT CONTACT INCORPORATED<<+ 2,029,545
342,100 F5 NETWORKS INCORPORATED+ 7,741,723
434,200 GARTNER INCORPORATED<<+ 9,951,864
267,250 H&E EQUIPMENT SERVICES INCORPORATED+ 3,503,648
467,100 INFORMATICA CORPORATION<<+ 7,454,916
349,900 INTERWOVEN INCORPORATED+ 3,939,874
433,500 ONLINE RESOURCES CORPORATION<<+ 4,382,685
353,900 PARAMETRIC TECHNOLOGY CORPORATION+ 6,168,477
119,100 RENT-A-CENTER INCORPORATED+ 2,564,223
250,100 RIGHTNOW TECHNOLOGIES INCORPORATED<<+ 2,993,697
683,300 SONICWALL INCORPORATED<<+ 5,254,577
333,900 THQ INCORPORATED<<+ 7,105,392
581,200 VALUECLICK INCORPORATED<<+ 11,594,940
47,700 VIAD CORPORATION 1,500,642
90,510,307
-----------
CASINO & GAMING: 0.49%
242,600 PINNACLE ENTERTAINMENT INCORPORATED<<+ 3,765,152
-----------
CHEMICALS & ALLIED PRODUCTS: 3.48%
47,300 ANIMAL HEALTH INTERNATIONAL INCORPORATED+ 415,767
342,500 CABOT CORPORATION<< 9,987,300
30,100 FMC CORPORATION 1,889,678
330,500 K-V PHARMACEUTICAL COMPANY CLASS A<<+ 8,077,420
152,000 PERRIGO COMPANY 6,230,480
26,600,645
-----------
COMMUNICATIONS: 3.75%
219,500 CBEYOND INCORPORATED<<+ 4,332,930
322,400 CLEAR CHANNEL OUTDOOR HOLDINGS INCORPORATED<<+ 6,132,048
155,200 CONSOLIDATED COMMUNICATIONS ILLINOIS HOLDINGS INCORPORATED 2,219,360
148,500 GEOEYE INCORPORATED+ 3,419,955
174,600 KNOLOGY INCORPORATED<<+ 2,238,372
54,400 MEDIACOM COMMUNICATIONS CORPORATION<<+ 233,376
382,000 PAETEC HOLDING CORPORATION<<+ 2,945,220
322,900 SYNIVERSE HOLDINGS INCORPORATED<<+ 5,072,759
105,600 TIME WARNER TELECOM INCORPORATED<<+ 2,069,760
28,663,780
-----------
COMMUNICATIONS EQUIPMENT: 0.50%
80,200 COMMSCOPE INCORPORATED+ 3,813,510
-----------
42 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
DEPOSITORY INSTITUTIONS: 5.67%
205,900 BANK OF HAWAII CORPORATION $11,289,497
81,100 BERKSHIRE HILLS BANCORP INCORPORATED 2,075,349
81,397 CULLEN FROST BANKERS INCORPORATED 4,543,581
248,410 CVB FINANCIAL CORPORATION<< 2,851,747
512,000 EURONET WORLDWIDE INCORPORATED<<+ 9,052,160
65,200 SVB FINANCIAL GROUP<<+ 3,172,632
177,700 WESTAMERICA BANCORPORATION<< 10,384,788
43,369,754
-----------
EATING & DRINKING PLACES: 0.67%
232,700 SONIC CORPORATION<<+ 5,117,073
-----------
ELECTRIC, GAS & SANITARY SERVICES: 5.14%
91,600 CLEAN HARBORS INCORPORATED<<+ 6,042,852
211,100 NORTHWESTERN CORPORATION 5,239,502
63,400 ORMAT TECHNOLOGIES INCORPORATED<< 3,125,620
164,200 PORTLAND GENERAL ELECTRIC COMPANY 3,940,800
96,400 UIL HOLDINGS CORPORATION 3,017,320
251,400 UNISOURCE ENERGY CORPORATION 7,853,736
314,250 WASTE CONNECTIONS INCORPORATED<<+ 10,077,998
39,297,828
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 5.81%
392,200 ANADIGICS INCORPORATED<<+ 4,376,952
115,700 IPG PHOTONICS CORPORATION<<+ 1,935,661
304,600 MEMSIC INCORPORATED<<+ 2,415,478
157,800 MICROSEMI CORPORATION<<+ 3,866,100
650,500 QLOGIC CORPORATION<<+ 10,381,980
356,700 SEMTECH CORPORATION+ 5,792,808
138,200 STANDARD MICROSYSTEMS CORPORATION<<+ 4,097,630
652,500 VISHAY INTERTECHNOLOGY INCORPORATED+ 6,166,125
359,700 VOLTERRA SEMICONDUCTOR CORPORATION<<+ 5,417,082
44,449,816
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 2.30%
72,900 DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS INCORPORATED 448,335
563,400 LEXICON GENETICS INCORPORATED+ 1,160,604
155,900 LUMINEX CORPORATION<<+ 3,041,609
320,000 MTC TECHNOLOGIES INCORPORATED+ 7,635,200
90,700 WATSON WYATT & COMPANY HOLDINGS 5,316,834
17,602,582
-----------
FOOD & KINDRED PRODUCTS: 0.71%
63,100 FLOWERS FOODS INCORPORATED<< 1,633,659
190,700 UNITED NATURAL FOODS INCORPORATED<<+ 3,775,860
5,409,519
-----------
HEALTH SERVICES: 3.15%
152,300 AMSURG CORPORATION+ 3,889,742
102,900 ATHENAHEALTH INCORPORATED<<+ 2,572,500
118,400 DIALYSIS CORPORATION OF AMERICA+ 905,760
10,600 ENSIGN GROUP INCORPORATED 101,866
130,800 PSYCHIATRIC SOLUTIONS INCORPORATED<<+ 4,540,068
194,100 SIRTRIS PHARMACEUTICALS INCORPORATED<<+ 4,338,135
342,400 SKILLED HEALTHCARE GROUP INCORPORATED+ 4,143,040
274,800 SUN HEALTHCARE GROUP INCORPORATED+ 3,613,620
24,104,731
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 43
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
HOLDING & OTHER INVESTMENT OFFICES: 2.28%
221,250 ANNALY MORTGAGE MANAGEMENT INCORPORATED $ 3,708,150
170,900 DIGITAL REALITY TRUST INCORPORATED<< 6,622,375
223,600 INVESTORS REAL ESTATE TRUST<< 2,280,720
212,000 NATIONAL RETAIL PROPERTIES INCORPORATED<< 4,856,920
17,468,165
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 0.55%
188,000 HOME INNS & HOTELS MANAGEMENT ADR<<+ 4,213,080
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 8.04%
196,800 ACTUANT CORPORATION CLASS A<< 6,665,616
435,900 DRESSER-RAND GROUP INCORPORATED+ 15,940,863
676,400 EMULEX CORPORATION+ 8,854,076
163,000 IDEX CORPORATION 5,980,470
61,800 MANITOWOC COMPANY INCORPORATED 2,337,276
546,400 SCIENTIFIC GAMES CORPORATION CLASS A<<+ 15,386,624
212,529 SHAW INDUSTRIES LIMITED CLASS A 6,330,920
61,495,845
-----------
INSURANCE CARRIERS: 3.62%
237,092 ARGO GROUP INTERNATIONAL HOLDINGS LIMITED+ 8,492,635
537,100 CONSECO INCORPORATED<<+ 6,257,215
249,800 REINSURANCE GROUP OF AMERICA INCORPORATED 12,984,604
27,734,454
-----------
JUSTICE, PUBLIC ORDER & SAFETY: 1.36%
394,100 GEO GROUP INCORPORATED<<+ 10,423,945
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS: 7.93%
176,500 ADVANCED MEDICAL OPTICS INCORPORATED<<+ 3,706,500
698,600 BRUKER BIOSCIENCES CORPORATION<<+ 8,467,032
196,400 CEPHEID INCORPORATED<<+ 3,843,548
249,800 COOPER COMPANIES INCORPORATED<< 8,743,000
68,600 DRS TECHNOLOGIES INCORPORATED<< 4,283,384
144,400 ESCO TECHNOLOGIES INCORPORATED<<+ 6,723,264
422,500 FEI COMPANY<<+ 9,240,075
106,900 HAEMONETICS CORPORATION+ 6,117,887
42,600 INTEGRA LIFESCIENCES HOLDINGS<<+ 1,804,962
58,700 ROFIN-SINAR TECHNOLOGIES INCORPORATED+ 2,235,296
292,200 VEECO INSTRUMENTS INCORPORATED<<+ 5,502,126
60,667,074
-----------
MEDICAL EQUIPMENT & SUPPLIES: 1.07%
498,300 PSS WORLD MEDICAL INCORPORATED<<+ 8,207,001
-----------
MEDICAL PRODUCTS: 0.26%
166,600 VOLCANO CORPORATION+ 1,970,878
-----------
METAL MINING: 1.04%
155,700 PAN AMERICAN SILVER CORPORATION<<+ 5,215,950
215,678 YAMANA GOLD INCORPORATED 2,764,986
7,980,936
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 0.17%
265,800 CENTRAL GARDEN & PET COMPANY CLASS A+ 1,334,316
-----------
44 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 0.25%
117,829 APOLLO INVESTMENT CORPORATION<< $ 1,906,473
-----------
OIL & GAS EXPLORATION: 0.90%
326,400 PARALLEL PETROLEUM CORPORATION+ 6,916,416
-----------
OIL & GAS EXTRACTION: 5.03%
67,200 APPROACH RESOURCES INCORPORATED+ 1,273,440
125,400 CONCHO RESOURCES INCORPORATED+ 3,457,278
643,096 GALLEON ENERGY INCORPORATED A+ 11,321,708
176,100 GOODRICH PETROLEUM CORPORATION<<+ 5,948,658
376,300 ST. MARY LAND & EXPLORATION COMPANY 16,451,836
38,452,920
-----------
PERSONAL SERVICES: 0.59%
153,900 REGIS CORPORATION 4,493,880
-----------
PRIMARY METAL INDUSTRIES: 1.27%
314,000 BRUSH ENGINEERED MATERIALS INCORPORATED+ 9,737,140
-----------
RAILROAD TRANSPORTATION: 0.55%
93,700 KANSAS CITY SOUTHERN<<+ 4,223,996
-----------
REAL ESTATE: 0.55%
302,400 CHIMERA INVESTMENT CORPORATION 4,194,288
-----------
REAL ESTATE INVESTMENT TRUSTS (REITS): 0.59%
92,711 HEALTH CARE REIT INCORPORATED 4,491,848
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS: 0.91%
148,900 WEST PHARMACEUTICAL SERVICES INCORPORATED 6,984,899
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 0.27%
42,500 INVESTMENT TECHNOLOGY GROUP INCORPORATED+ 2,051,050
-----------
SOFTWARE: 0.70%
111,900 MANTECH INTERNATIONAL CORPORATION CLASS A<<+ 5,345,463
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 1.41%
227,000 CARBO CERAMICS INCORPORATED 10,789,310
-----------
TEXTILE MILL PRODUCTS: 0.66%
97,000 ALBANY INTERNATIONAL CORPORATION CLASS A 3,521,100
119,400 INTERFACE INCORPORATED 1,533,096
5,054,196
-----------
TRANSPORTATION BY AIR: 0.39%
175,100 REPUBLIC AIRWAYS HOLDINGS INCORPORATED+ 2,952,186
-----------
TRANSPORTATION SERVICES: 1.08%
424,500 AMBASSADORS GROUP INCORPORATED<< 8,260,770
-----------
WATER TRANSPORTATION: 1.17%
218,000 HORIZON LINES INCORPORATED<< 2,299,900
249,900 SEASPAN CORPORATION<< 6,642,342
8,942,242
-----------
WHOLESALE TRADE NON-DURABLE GOODS: 0.96%
153,300 AIRGAS INCORPORATED 7,378,329
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 45
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- ------------
WHOLESALE TRADE-DURABLE GOODS: 0.77%
271,800 LKQ CORPORATION<<+ $ 5,914,367
------------
TOTAL COMMON STOCKS (COST $649,530,248) 690,772,219
------------
COLLATERAL FOR SECURITIES LENDING: 30.00%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 1.76%
1,938,059 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,938,059
2,370,024 BLACKROCKTEMP B #24 MONEY MARKET FUND 2,370,024
5,022,084 DAILY ASSETS FUND INSTITUTIONAL 5,022,084
4,166,438 DREYFUS CASH MANAGEMENT FUND 4,166,438
13,496,605
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ----------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 28.24%
$ 2,238,760 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 2,237,723
771,162 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 769,970
2,420,281 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 2,415,989
1,815,211 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 1,814,636
1,434,017 APRECO LLC++ 2.94 05/28/2008 1,430,884
5,076,540 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 5,076,540
1,210,141 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 1,208,983
1,512,676 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 1,511,319
4,140,678 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $4,140,908) 2.00 05/01/2008 4,140,678
4,617,776 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $4,618,093) 2.47 05/01/2008 4,617,776
1,512,676 BANK OF IRELAND+++/- 3.06 10/14/2008 1,511,889
2,420,281 BANK OF SCOTLAND PLC 2.80 05/29/2008 2,415,029
16,242,085 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY 2.00 05/01/2008 16,242,085
VALUE $16,242,987)
1,210,141 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 1,207,624
1,243,117 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 1,240,367
1,210,141 CHARIOT FUNDING LLC++ 2.70 05/14/2008 1,208,961
1,210,141 CHARIOT FUNDING LLC++ 2.76 05/29/2008 1,207,552
3,209,539 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 2,310,868
2,468,393 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 1,777,243
771,162 CIESCO LLC++ 2.90 05/21/2008 769,984
1,784,958 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 1,780,428
6,056,754 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 6,056,754
4,538,028 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 4,527,867
16,242,085 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $16,242,987) 2.00 05/01/2008 16,242,085
2,420,281 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 2,416,116
4,247,594 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 4,246,225
1,210,141 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 1,209,139
1,210,141 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 1,207,645
6,050,703 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 6,028,298
4,840,563 GALLEON CAPITAL LLC++ 2.90 05/21/2008 4,832,764
5,016,033 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 5,014,013
6,050,703 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 6,042,111
46 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ----------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 3,932,957 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(i) 2.79% 10/16/2008 $ 3,932,957
2,722,817 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 2,721,177
4,365,220 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 4,363,522
3,025,352 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 3,025,352
3,025,352 LINKS FINANCE LLC+++/- 2.52 08/15/2008 3,009,599
4,840,563 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $4,840,886) 2.40 05/01/2008 4,840,563
1,273,250 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 1,271,764
1,210,141 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 1,207,606
279,845 MORGAN STANLEY+/- 2.84 10/15/2008 279,622
2,743,086 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,743,238) 2.00 05/01/2008 2,743,086
5,536,394 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $5,536,765) 2.41 05/01/2008 5,536,394
2,420,281 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 2,417,382
3,025,352 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 3,009,190
2,783,324 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 2,783,107
1,764,022 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 1,760,114
2,889,211 PICAROS FUNDING LLC++ 2.60 05/06/2008 2,888,168
1,210,141 PRUDENTIAL PLC++ 2.88 05/28/2008 1,207,536
4,840,563 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 4,840,173
2,471,712 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 2,467,838
2,420,281 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 2,415,874
847,098 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 846,714
1,512,676 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 1,510,281
1,210,141 SLM CORPORATION+++/- 2.73 05/12/2008 1,209,517
6,292,732 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 6,290,267
1,875,718 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 1,672,390
3,025,352 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 2,697,404
1,210,141 SWEDBANK MORTGAGE AB 2.95 05/27/2008 1,207,571
2,117,746 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 2,116,405
2,759,000 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 2,755,781
1,512,676 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 1,509,179
9,076,055 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 9,071,193
1,512,676 UNICREDITO ITALIANO BANK (IRELAND)+++/- 2.74 10/14/2008 1,511,738
1,512,676 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 1,511,868
2,601,802 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 2,319,767
1,512,676 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 1,348,702
3,025,352 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 2,774,248
4,235,492 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 4,234,136
216,027,730
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $232,386,613) 229,524,335
------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 47
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
- ----------- ---------------------------------------------------------------- ------------
SHORT-TERM INVESTMENTS: 9.39%
71,836,415 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## $ 71,836,415
------------
TOTAL SHORT-TERM INVESTMENTS (COST $71,836,415) 71,836,415
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $953,753,276)* 129.68% $992,132,969
OTHER ASSETS AND LIABILITIES, NET (29.68) (227,077,819)
------ ------------
TOTAL NET ASSETS 100.00% $765,055,150
------ ------------
<< All or a portion of this security is on loan.
+ Non-income earning securities.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ 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.
## Short-term security of an affiliate of the Fund with a cost of $71,836,415.
* 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.
48 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ------- ----------------------------------------------------------------- --------------
COMMON STOCKS: 91.01%
APPAREL & ACCESSORY STORES: 0.59%
1,710,000 COLLECTIVE BRANDS INCORPORATED+ $ 21,152,700
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS: 0.28%
1,192,800 PALM HARBOR HOMES INCORPORATED+** 10,270,008
--------------
BUSINESS SERVICES: 4.51%
17,334,200 3COM CORPORATION+ 41,428,738
2,365,700 ABM INDUSTRIES INCORPORATED 49,537,758
1,008,300 COGNEX CORPORATION# 25,409,160
980,700 DELUXE CORPORATION 20,849,682
116,254 ELECTRONICS FOR IMAGING INCORPORATED+ 1,676,383
711,800 HEALTHCARE SERVICES GROUP 10,862,068
287,400 HIGHLANDS ACQUISITION CORPORATION+ 2,701,560
955,800 KFORCE INCORPORATED+ 7,866,234
47,100 MPS GROUP INCORPORATED+ 505,383
89,700 SRA INTERNATIONAL INCORPORATED CLASS A+# 2,356,419
163,193,385
--------------
CHEMICALS & ALLIED PRODUCTS: 3.20%
697,800 ALPHARMA INCORPORATED CLASS A+ 17,172,858
763,000 CALGON CARBON CORPORATION+ 10,872,750
449,300 OM GROUP INCORPORATED+# 24,603,668
4,996,800 ORASURE TECHNOLOGIES INCORPORATED+** 32,279,328
3,442,100 PRESTIGE BRANDS HOLDINGS INCORPORATED+** 30,910,058
115,838,662
--------------
COMMUNICATIONS: 2.30%
3,124,194 CHINA GRENTECH CORPORATION LIMITED ADR+** 14,777,438
8,357,600 CINCINNATI BELL INCORPORATED+ 38,779,264
11,428,100 CITADEL BROADCASTING CORPORATION+ 15,542,216
341,910 ENTRAVISION COMMUNICATIONS CORPORATION CLASS A+ 2,389,951
1,426,100 MASTEC INCORPORATED+# 11,679,759
83,168,628
--------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS: 3.25%
2,895,300 CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES# 115,348,752
111,200 MATRIX SERVICE COMPANY+ 2,236,232
117,584,984
--------------
DEPOSITORY INSTITUTIONS: 0.20%
886,700 THE COLONIAL BANCGROUP INCORPORATED# 7,217,738
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 3.61%
2,339,700 GRAFTECH INTERNATIONAL LIMITED+ 45,975,105
11,120,100 MRV COMMUNICATIONS INCORPORATED+** 17,458,557
1,451,400 OSI SYSTEMS INCORPORATED+** 35,486,730
5,970,300 POWER-ONE INCORPORATED+** 17,851,197
3,317,500 POWERWAVE TECHNOLOGIES+ 9,056,775
493,100 VISHAY INTERTECHNOLOGY INCORPORATED+ 4,659,795
130,488,159
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 0.26%
630,700 INFINITY PHARMACEUTICALS INCORPORATED+ 4,295,067
698,000 SYMYX TECHNOLOGIES INCORPORATED+ 5,241,980
9,537,047
--------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 49
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ------- ----------------------------------------------------------------- --------------
FINANCIAL SERVICES: 0.26%
273,500 KBW REGIONAL BANKING ETF $ 9,520,535
--------------
FOOD & KINDRED PRODUCTS: 1.91%
7,640,400 DEL MONTE FOODS COMPANY 68,916,408
--------------
GENERAL MERCHANDISE STORES: 0.08%
233,100 FOOT LOCKER INCORPORATED 2,948,715
--------------
HEALTH SERVICES: 2.19%
2,517,800 CROSS COUNTRY HEALTHCARE INCORPORATED+** 30,112,888
1,432,100 GENTIVA HEALTH SERVICES INCORPORATED+** 31,133,854
896,600 MDS INCORPORATED+ 17,851,306
79,098,048
--------------
HOLDING & OTHER INVESTMENT OFFICES: 5.84%
4,429,700 ANNALY MORTGAGE MANAGEMENT INCORPORATED# 74,241,772
2,287,600 ANWORTH MORTGAGE ASSET CORPORATION# 15,281,168
2,881,800 CAPSTEAD MORTGAGE CORPORATION#** 37,175,220
737,500 DISCOVERY HOLDING COMPANY CLASS A+ 17,080,500
2,020,150 HILLTOP HOLDINGS INCORPORATED+ 21,332,784
4,585,200 MFA Mortgage Investments Incorporated 32,050,548
716,200 Sun Communities Incorporated 13,930,090
211,092,082
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 0.14%
1,879,800 EMPIRE RESORTS INCORPORATED+** 5,056,662
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 3.03%
3,338,600 CRAY INCORPORATED+** 20,799,478
3,462,300 INTERMEC INCORPORATED+** 73,123,776
101,300 SMITH INTERNATIONAL INCORPORATED 7,750,463
1,400,100 VOYAGER LEARNING COMPANY+ 7,840,560
109,514,277
--------------
INSURANCE AGENTS, BROKERS & SERVICE: 0.02%
36,660 ONEBEACON INSURANCE GROUP LIMITED 720,736
--------------
INSURANCE CARRIERS: 2.88%
1,706,900 ARGO GROUP INTERNATIONAL HOLDINGS LIMITED+** 61,141,158
624,400 MERCURY GENERAL CORPORATION 31,151,316
519,700 NYMAGIC INCORPORATED** 11,823,175
104,115,649
--------------
JUSTICE, PUBLIC ORDER & SAFETY: 1.70%
2,324,100 GEO GROUP INCORPORATED+# 61,472,445
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE: 2.56%
7,741,200 CHAMPION ENTERPRISES INCORPORATED+#** 79,889,184
461,700 SKYLINE CORPORATION** 12,705,984
92,595,168
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 1.95%
311,000 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP# 9,924,010
1,045,300 COHERENT INCORPORATED+ 31,149,940
7,274,300 CREDENCE SYSTEMS CORPORATION+** 7,565,272
716,500 ION GEOPHYSICAL CORPORATION+ 11,413,845
745,800 SYMMETRY MEDICAL INCORPORATED+# 10,463,574
70,516,641
--------------
50 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ------- ----------------------------------------------------------------- --------------
METAL MINING: 11.03%
5,174,700 APEX SILVER MINES LIMITED+** $ 52,005,735
3,692,700 GOLDCORP INCORPORATED# 131,903,244
4,163,300 RANDGOLD RESOURCES LIMITED ADR#** 189,513,416
1,977,100 YAMANA GOLD INCORPORATED# 25,346,422
398,768,817
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 0.79%
2,047,700 ACCO BRANDS CORPORATION+ 28,503,984
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING: 0.18%
1,110,200 COVENANT TRANSPORT INCORPORATED CLASS A+** 6,361,446
--------------
OIL & GAS EXTRACTION: 26.84%
1,287,100 BOOTS & COOTS INTERNATIONAL CONTROL INCORPORATED+ 2,651,426
936,300 FOREST OIL CORPORATION+# 55,176,159
6,301,400 GLOBAL INDUSTRIES LIMITED+#** 100,570,344
1,219,800 HELIX ENERGY SOLUTIONS GROUP INCORPORATED+# 42,144,090
1,361,800 HELMERICH & PAYNE INCORPORATED# 73,196,750
3,616,700 KEY ENERGY SERVICES INCORPORATED+ 49,548,790
770,500 MARINER ENERGY INCORPORATED+ 21,234,980
3,612,400 MCMORAN EXPLORATION COMPANY+#** 99,052,008
606,600 NEWFIELD EXPLORATION COMPANY+# 36,857,016
8,328,300 NEWPARK RESOURCES INCORPORATED+** 45,722,367
291,100 NOBLE ENERGY INCORPORATED# 25,325,700
760,700 OCEANEERING INTERNATIONAL INCORPORATED+ 50,799,546
1,845,100 PARKER DRILLING COMPANY+ 14,797,702
1,200 PETROHAWK ENERGY CORPORATION+ 28,368
376,000 PETROHAWK ENERGY CORPORATION+ 8,888,640
607,100 PETROQUEST ENERGY INCORPORATED+ 12,615,538
333,900 PIONEER NATURAL RESOURCES COMPANY 19,276,047
695,700 PRIDE INTERNATIONAL INCORPORATED+ 29,532,465
2,609,750 RANGE RESOURCES CORPORATION# 173,235,205
140,200 TRANSOCEAN INCORPORATED+ 20,673,892
2,628,800 TRILOGY ENERGY TRUST 30,540,125
1,632,500 WILLBROS GROUP INCORPORATED+# 58,916,925
970,784,083
--------------
PAPER & ALLIED PRODUCTS: 0.47%
1,114,500 CHESAPEAKE CORPORATION+** 4,881,510
1,583,100 WAUSAU PAPER CORPORATION 12,253,194
17,134,704
--------------
PETROLEUM REFINING & RELATED INDUSTRIES: 2.06%
412,600 ASHLAND INCORPORATED# 21,876,052
2,794,900 INTEROIL CORPORATION+#** 52,795,661
74,671,713
--------------
PRIMARY METAL INDUSTRIES: 4.21%
880,000 CARPENTER TECHNOLOGY CORPORATION# 45,126,400
87,500 ENCORE WIRE CORPORATION# 1,977,500
2,041,600 STEEL DYNAMICS INCORPORATED# 71,149,760
132,000 UNITED STATES STEEL CORPORATION# 20,321,400
100,365 WEBCO INDUSTRIES INCORPORATED+**(A) 13,549,208
152,124,268
--------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 51
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ------- ----------------------------------------------------------------- --------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 0.83%
1,244,800 MCCLATCHY COMPANY CLASS A $ 13,070,400
3,513,400 R.H. DONNELLEY CORPORATION+#(A)** 16,829,186
29,899,586
--------------
REAL ESTATE: 0.55%
790,400 HATTERAS FINANCIAL CORPORATION+ 19,981,312
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS: 0.65%
1,157,940 CONSTAR INTERNATIONAL INCORPORATED+** 3,392,764
8,618,150 INTERTAPE POLYMER GROUP INCORPORATED+** 20,252,653
23,645,417
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 0.27%
2,920,600 US CONCRETE INCORPORATED+** 9,637,980
--------------
TRANSPORTATION BY AIR: 1.72%
260,400 AIR CANADA CLASS A+ 2,122,812
799,300 ALASKA AIR GROUP INCORPORATED+ 17,168,964
695,100 LAN AIRLINES SA ADR+# 9,196,173
135,402 PHI INCORPORATED+ 4,766,150
773,500 PHI INCORPORATED (NON-VOTING)+** 29,060,393
62,314,492
--------------
TRANSPORTATION EQUIPMENT: 0.65%
6,814,800 FLEETWOOD ENTERPRISES INCORPORATED+** 23,511,060
--------------
TOTAL COMMON STOCKS (COST $2,723,061,103) 3,291,357,539
--------------
INVESTMENT COMPANIES: 0.43%
225,700 ISHARES RUSSELL 2000 VALUE INDEX FUND 15,383,712
TOTAL INVESTMENT COMPANIES (COST $17,228,725) 15,383,712
--------------
SHORT-TERM INVESTMENTS: 9.53%
334,755,007 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 334,755,007
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ------------ ------------- -------------
US TREASURY BILLS: 0.27%
$ 10,000,000 US TREASURY BILLS@ 2.17% 05/22/2008 9,998,121
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $344,742,407) 344,753,128
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $3,085,032,235)* 100.97% $3,651,494,379
OTHER ASSETS AND LIABILITIES, NET (0.97) (35,127,707)
------ --------------
TOTAL NET ASSETS 100.00% $3,616,366,672
------ --------------
52 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
EXPIRATION
CONTRACTS SECURITY NAME STRIKE PRICE DATE VALUE
- ------------ -------------------------------------------------------------- ------------- ------------- --------------
WRITTEN OPTIONS: (0.84%)
(200) ANNALY CAPITAL MANAGEMENT INCORPORATED CALL+ $ 22.50 07/19/2008 $ (1,000)
(1,500) ANWORTH MORTGAGE ASSET CORPORATION CALL+ 7.50 07/19/2008 (45,000)
(200) ANWORTH MORTGAGE ASSET CORPORATION CALL+ 7.50 10/18/2008 (10,000)
(100) APPLERA CORPORATION- APPLIED BIOSYSTEMS GROUP CALL+ 25.00 09/20/2008 (72,000)
(900) ASHLAND INCORPORATED CALL+ 55.00 07/19/2008 (211,500)
(600) CAPSTEAD MORTGAGE CORPORATION CALL+ 12.50 11/22/2008 (69,000)
(600) CAPSTEAD MORTGAGE CORPORATION CALL+ 15.00 11/22/2008 (27,000)
(200) CARPENTER TECHNOLOGY CALL+ 50.00 06/21/2008 (85,000)
(500) CARPENTER TECHNOLOGY CORPORATION CALL+ 50.00 05/17/2008 (137,000)
(800) CARPENTER TECHNOLOGY CORPORATION CALL+ 52.50 06/21/2008 (264,000)
(550) CARPENTER TECHNOLOGY CORPORATION CALL+ 55.00 06/21/2008 (101,750)
(1,200) CARPENTER TECHNOLOGY CORPORATION CALL+ 50.00 09/20/2008 (816,000)
(200) CARPENTER TECHNOLOGY CORPORATION CALL+ 60.00 09/20/2008 (52,500)
(400) CARPENTER TECHNOLOGY CORPORATION CALL+ 55.00 09/20/2008 (168,000)
(300) CHAMPION ENTERPRISES INCORPORATED CALL+ 12.50 07/19/2008 (15,000)
(150) CHAMPION ENTERPRISES INCORPORATED CALL+ 12.50 10/18/2008 (15,000)
(200) COGNEX CORPORATION CALL+ 20.00 05/17/2008 (100,000)
(200) COGNEX CORPORATION CALL+ 25.00 05/22/2008 (17,000)
(300) COGNEX CORPORATION CALL+ 25.00 08/16/2008 (69,000)
(200) COGNEX CORPORATION CALL+ 30.00 11/22/2008 (30,000)
(300) COGNEX CORPORATION CALL+ 25.00 06/21/2008 (45,000)
(874) ENCORE WIRE CORPORATION CALL+ 15.00 11/22/2008 (672,980)
(150) FOREST OIL CORPORATION CALL+ 55.00 08/16/2008 (108,000)
(300) GEO GROUP INCORPORATED CALL+ 30.00 06/21/2008 (13,500)
(200) GLOBAL INDUSTRIES LIMITED CALL+ 17.50 06/21/2008 (10,000)
(200) GLOBAL INDUSTRIES LIMITED PUT+ 17.50 06/21/2008 (41,000)
(300) GOLDCORP INCORPORATED CALL+ 35.00 06/21/2008 (87,000)
(500) GOLDCORP INCORPORATED CALL+ 40.00 06/21/2008 (50,000)
(300) GOLDCORP INCORPORATED CALL+ 42.50 07/19/2008 (33,000)
(100) HELIX ENERGY SOLUTIONS GROUP CALL+ 35.00 06/21/2008 (20,000)
(200) HELMERICH & PAYNE INCORPORATED CALL+ 45.00 09/20/2008 (210,000)
(200) HELMERICH & PAYNE INCORPORATED CALL+ 50.00 09/20/2008 (146,800)
(1,295) HELMERICH & PAYNE INCORPORATED CALL+ 40.00 06/21/2008 (1,761,200)
(1,250) HELMERICH & PAYNE INCORPORATED CALL+ 45.00 06/21/2008 (1,137,500)
(400) HELMERICH & PAYNE INCORPORATED CALL+ 50.00 06/21/2008 (217,200)
(300) HELMERICH & PAYNE INCORPORATED CALL+ 55.00 09/20/2008 (137,700)
(300) HELMERICH & PAYNE INCORPORATED CALL+ 60.00 09/20/2008 (84,000)
(400) INTEROIL CORPORATION CALL+ 20.00 06/21/2008 (88,000)
(100) LAN AIRLINES S.A. CALL+ 15.00 09/20/2008 (7,500)
(200) MASTEC INCORPORATED CALL+ 10.00 07/19/2008 (3,000)
(200) MCMORAN EXPLORATION COMPANY CALL+ 25.00 08/16/2008 (93,600)
(200) MCMORAN EXPLORATION COMPANY CALL+ 30.00 11/22/2008 (64,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 65.00 06/21/2008 (29,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 60.00 06/21/2008 (78,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 65.00 09/20/2008 (74,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 75.00 09/20/2008 (28,000)
(100) NOBLE ENERGY CALL+ 75.00 08/16/2008 (143,000)
Wells Fargo Advantage Small and Mid Cap Stock Funds 53
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
EXPIRATION
CONTRACTS SECURITY NAME STRIKE PRICE DATE VALUE
- ------------ -------------------------------------------------------------- ------------- ------------- --------------
WRITTEN OPTIONS (continued)
(600) NOBLE ENERGY CALL+ $ 80.00 08/16/2008 $ (619,200)
(1,100) OM GROUP INCORPORATED CALL+ 50.00 06/21/2008 (825,000)
(1,150) OM GROUP INCORPORATED CALL+ 55.00 06/21/2008 (483,000)
(1,143) OM GROUP INCORPORATED CALL+ 60.00 06/21/2008 (280,034)
(550) OM GROUP INCORPORATED CALL+ 45.00 09/20/2008 (704,000)
(550) OM GROUP INCORPORATED CALL+ 50.00 09/20/2008 (528,000)
(200) R.H. DONNELLEY CORPORATION CALL+(A) 20.00 05/17/2008 0
(600) R.H. DONNELLEY CORPORATION CALL+(A) 22.50 05/17/2008 0
(500) RANDGOLD RESOURCES LIMITED CALL+ 50.00 06/21/2008 (82,500)
(400) RANDGOLD RESOURCES LIMITED CALL+ 55.00 06/22/2008 (28,000)
(100) RANDGOLD RESOURCES LIMITED CALL+ 55.00 09/20/2008 (26,500)
(100) RANDGOLD RESOURCES LIMITED CALL+ 70.00 09/20/2008 (5,500)
(400) RANDGOLD RESOURCES LIMITED CALL+ 60.00 06/21/2008 (12,000)
(50) RANDGOLD RESOURCES LIMITED CALL+ 65.00 06/21/2008 (750)
(100) RANDGOLD RESOURCES LIMITED CALL+ 60.00 09/20/2008 (17,000)
(100) RANDGOLD RESOURCES LIMITED CALL+ 65.00 09/20/2008 (10,000)
(100) RANGOLD RESOURCES LIMITED CALL+ 75.00 09/20/2008 (3,000)
(597) SRA INTERNATIONAL INCORPORATED CALL+ 22.50 06/21/2008 (202,980)
(300) SRA INTERNATIONAL INCORPORATED CALL+ 25.00 06/21/2008 (60,000)
(230) STEEL DYNAMICS INCORPORATED CALL+ 32.50 11/22/2008 (157,090)
(1,400) STEEL DYNAMICS INCORPORATED CALL+ 35.00 05/17/2008 (224,000)
(600) STEEL DYNAMICS INCORPORATED CALL+ 27.50 08/16/2008 (504,000)
(2,400) STEEL DYNAMICS INCORPORATED CALL+ 30.00 08/16/2008 (1,680,000)
(1,500) STEEL DYNAMICS INCORPORATED CALL+ 22.50 05/17/2008 (1,888,500)
(2,000) STEEL DYNAMICS INCORPORATED CALL+ 25.00 05/17/2008 (2,046,000)
(2,300) STEEL DYNAMICS INCORPORATED CALL+ 27.50 05/17/2008 (1,656,000)
(3,300) STEEL DYNAMICS INCORPORATED CALL+ 30.00 05/17/2008 (1,848,000)
(3,000) STEEL DYNAMICS INCORPORATED CALL+ 32.50 05/17/2008 (933,000)
(400) STEEL DYNAMICS INCORPORATED CALL+ 25.00 08/16/2008 (420,000)
(1,175) STEEL DYNAMICS INCORPORATED CALL+ 32.50 08/16/2008 (638,025)
(600) STEEL DYNAMICS INCORPORATED CALL+ 35.00 08/16/2008 (240,000)
(200) STEEL DYNAMICS INCORPORATED CALL+ 40.00 08/16/2008 (40,000)
(200) STEEL DYNAMICS INCORPORATED CALL+ 40.00 08/16/2008 (40,000)
(500) STEEL DYNAMICS INCORPORATED CALL+ 30.00 11/22/2008 (395,000)
(400) STEEL DYNAMICS INCORPORATED CALL+ 37.50 05/17/2008 (24,000)
(150) SYMMETRY MEDICAL INCORPORATED CALL+ 20.00 07/19/2008 (750)
(400) THE COLONIAL BANCGROUP INCORPORATED CALL+ 10.00 06/21/2008 (10,000)
(250) UNITED STATES STEEL CORPORATION CALL+ 110.00 07/19/2008 (1,150,000)
(525) UNITED STATES STEEL CORPORATION CALL+ 115.00 07/19/2008 (2,252,250)
(295) UNITED STATES STEEL CORPORATION CALL+ 110.00 10/18/2008 (1,457,300)
(250) UNITED STATES STEEL CORPORATION CALL+ 105.00 07/19/2008 (1,305,000)
(400) WILLBROS GROUP INCORPORATED CALL+ 40.00 06/21/2008 (50,800)
(200) WILLBROS GROUP INCORPORATED CALL+ 45.00 06/21/2008 (6,000)
(150) YAMANA GOLD INCORPORATED CALL+ 15.00 07/19/2008 (9,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(22,295,052)) (30,550,909)
--------------
54 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
- ----------
+ Non-income earning securities.
# All or a portion of this security is segregated as collateral for
derivative investments. (See Note 2)
** Represents an affiliate of the Fund under section 2(a)(2) and 2(a)(3) of
the Investment Company Act of 1940, as Fund holds 5% or more of 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.
## Short-term security of an affiliate of the Fund with a cost of
$334,755,007.
@ Zero coupon bond. Interest rate presented is yield to maturity.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
56 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Assets and Liabilities-April 30, 2008 (Unaudited)
C&B Mid Common Mid Cap
Cap Value Stock Growth
Fund Fund Fund
------------ -------------- ------------
ASSETS
Investments
In securities, at market value (including securities on loan) .... $464,360,898 $ 925,786,137 $139,627,892
Collateral received for securities loaned (Note 2) ............... 123,919,830 129,534,960 41,253,710
Investments in affiliates ........................................ 13,913,831 113,948,622 7,977,326
------------ -------------- ------------
Total investments at market value (see cost below) .................. 602,194,559 1,169,269,719 188,858,928
------------ -------------- ------------
Cash ................................................................ 0 0 50,000
Receivable for Fund shares issued ................................... 396,674 224,542 11,451
Receivable for investments sold ..................................... 10,702,418 2,385,350 1,874,678
Receivables for dividends and interest .............................. 72,977 664,310 52,927
Receivable for interest rate swaps/spread locks ..................... 0 970,560 0
------------ -------------- ------------
Total assets ........................................................... 613,366,628 1,173,514,481 190,847,984
------------ -------------- ------------
LIABILITIES
Option written, at value ............................................ 0 0 0
Payable for Fund shares redeemed .................................... 545,759 246,218 42,367
Payable for investments purchased ................................... 0 953,230 762,309
Dividends payable ................................................... 0 0 149
Payable to investment advisor and affiliates (Note 3) ............... 385,003 877,867 123,190
Payable upon receipt of securities loaned (Note 2) .................. 125,662,384 131,111,695 41,728,496
Accrued expenses and other liabilities .............................. 75,209 367,969 30,751
------------ -------------- ------------
Total liabilities ...................................................... 126,668,355 133,556,979 42,687,262
------------ -------------- ------------
TOTAL NET ASSETS ....................................................... $486,698,273 $1,039,957,502 $148,160,722
------------ -------------- ------------
NET ASSETS CONSIST OF
Paid-in capital ..................................................... $617,488,845 $ 883,473,456 $147,384,838
Undistributed net investment income (loss) .......................... 2,970,513 (6,093,144) (666,721)
Undistributed net realized gain (loss) on investments ............... (44,908,297) 23,359,861 521,309
Net unrealized appreciation (depreciation) of investments, foreign
currencies and translation of assets and liabilities denominated
in foreign currencies ............................................ (88,852,788) 138,246,766 921,296
Net unrealized appreciation (depreciation) of options, swap
agreements, and short sales ...................................... 0 970,560 0
------------ -------------- ------------
TOTAL NET ASSETS ....................................................... $486,698,273 $1,039,957,502 $148,160,722
------------ -------------- ------------
COMPUTATION OF NE T ASSE T VA LUE AND OFFERING PRICE PER SHARE (1)
Net assets - Class A ................................................ $ 33,220,312 $ 129,450,122 $104,383,008
Shares outstanding - Class A ........................................ 2,247,987 7,423,689 18,670,136
Net asset value per share - Class A ................................. $ 14.78 $ 17.44 $ 5.59
Maximum offering price per share - Class A(2) ....................... $ 15.68 $ 18.50 $ 5.93
Net assets - Class B ................................................ $ 8,747,218 $ 24,283,140 $ 4,600,945
Shares outstanding - Class B ........................................ 610,326 1,514,755 895,685
Net asset value and offering price per share - Class B .............. $ 14.33 $ 16.03 $ 5.14
Net assets - Class C ................................................ $ 10,045,393 $ 15,266,811 $ 2,630,410
Shares outstanding - Class C ........................................ 700,511 952,696 512,869
Net asset value and offering price per share - Class C .............. $ 14.34 $ 16.02 $ 5.13
Net assets - Class D ................................................ $315,336,701 NA NA
Shares outstanding - Class D ........................................ 21,230,506 NA NA
Net asset value and offering price per share - Class D .............. $ 14.85 NA NA
Net assets - Class Z ................................................ NA $ 870,957,429 $ 36,525,062
Shares outstanding - Class Z ........................................ NA 48,885,900 6,580,636
Net asset value and offering price per share - Class Z .............. NA $ 17.82 $ 5.55
Net assets - Administrator Class .................................... $ 54,040,395 NA $ 10,649
Shares outstanding - Administrator Class ............................ 3,625,703 NA 1,905
Net asset value and offering price per share - Administrator Class .. $ 14.90 NA $ 5.59
Net assets - Institutional Class .................................... $ 65,308,254 NA $ 10,648
Shares outstanding - Institutional Class ............................ 4,370,183 NA 1,905
Net asset value and offering price per share - Institutional Class .. $ 14.94 NA $ 5.59
------------ -------------- ------------
Investments at cost .................................................... $691,047,347 $1,031,022,953 $187,937,632
------------ -------------- ------------
Securities on loan, at market value (Note 2) ........................... $121,418,938 $ 126,004,699 $ 39,863,799
------------ -------------- ------------
Premiums received on written options (Note 2) .......................... $ 0 $ 0 $ 0
------------ -------------- ------------
(1) Each Fund has an unlimited number of authorized shares.
(2) Maximum offering price is computed as 100/94.25 of net asset value. On
investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities-April 30, 2008 (Unaudited)
Wells Fargo Advantage Small and Mid Cap Stock Funds 57
Small Cap Small Cap Small Cap
Growth Opportunities Value
Fund Fund Fund
-------------- ------------- --------------
ASSETS
Investments
In securities, at market value (including securities on loan) .... $ 387,879,171 $690,772,219 $2,120,353,073
Collateral received for securities loaned (Note 2) ............... 161,205,275 229,524,335 0
Investments in affiliates ........................................ 18,156,795 71,836,415 1,531,141,306
-------------- ------------ --------------
Total investments at market value (see cost below) .................. 567,241,241 992,132,969 3,651,494,379
-------------- ------------ --------------
Cash ................................................................ 50,000 50,000 30,000
Receivable for Fund shares issued ................................... 1,324,778 43,801 1,997,841
Receivable for investments sold ..................................... 3,310,690 6,977,468 9,873,040
Receivables for dividends and interest .............................. 65,688 554,058 2,165,097
Receivable for interest rate swaps/spread locks ..................... 0 0 0
-------------- ------------ --------------
Total assets ........................................................... 571,992,397 999,758,296 3,665,560,357
-------------- ------------ --------------
LIABILITIES
Option written, at value ............................................ 0 0 30,550,909
Payable for Fund shares redeemed .................................... 95,738 850 498,107
Payable for investments purchased ................................... 3,929,290 1,514,896 14,024,392
Dividends payable ................................................... 0 0 7,816
Payable to investment advisor and affiliates (Note 3) ............... 327,941 618,085 3,322,105
Payable upon receipt of securities loaned (Note 2) .................. 163,013,104 232,386,613 0
Accrued expenses and other liabilities .............................. 70,367 182,702 790,356
-------------- ------------ --------------
Total liabilities ...................................................... 167,436,440 234,703,146 49,193,685
-------------- ------------ --------------
TOTAL NET ASSETS ....................................................... $ 404,555,957 $765,055,150 $3,616,366,672
-------------- ------------ --------------
NET ASSETS CONSIST OF
Paid-in capital ..................................................... $ 452,785,192 $692,731,605 $3,047,112,206
Undistributed net investment income (loss) .......................... (1,638,637) 115,690 (39,416,500)
Undistributed net realized gain (loss) on investments ............... (7,325,243) 33,828,162 50,464,241
Net unrealized appreciation (depreciation) of investments, foreign
currencies and translation of assets and liabilities denominated
in foreign currencies ............................................ (39,265,355) 38,379,693 566,462,582
Net unrealized appreciation (depreciation) of options, swap
agreements, and short sales ...................................... 0 0 (8,255,857)
-------------- ------------ --------------
TOTAL NET ASSETS ....................................................... $ 404,555,957 $765,055,150 $3,616,366,672
-------------- ------------ --------------
COMPUTATION OF NE T ASSE T VA LUE AND OFFERING PRICE PER SHARE (1)
Net assets - Class A ................................................ $ 174,011,165 NA $ 606,373,516
Shares outstanding - Class A ........................................ 15,602,196 NA 21,554,947
Net asset value per share - Class A ................................. $ 11.15 NA $ 28.13
Maximum offering price per share - Class A(2) ....................... $ 11.83 NA $ 29.85
Net assets - Class B ................................................ $ 8,827,762 NA $ 94,607,404
Shares outstanding - Class B ........................................ 831,908 NA 3,645,925
Net asset value and offering price per share - Class B .............. $ 10.61 NA $ 25.95
Net assets - Class C ................................................ $ 7,999,834 NA $ 119,357,998
Shares outstanding - Class C ........................................ 752,609 NA 4,585,140
Net asset value and offering price per share - Class C .............. $ 10.63 NA $ 26.03
Net assets - Class D ................................................ NA NA NA
Shares outstanding - Class D ........................................ NA NA NA
Net asset value and offering price per share - Class D .............. NA NA NA
Net assets - Class Z ................................................ $ 30,761,141 NA $2,383,377,507
Shares outstanding - Class Z ........................................ 2,777,336 NA 83,514,517
Net asset value and offering price per share - Class Z .............. $ 11.08 NA $ 28.54
Net assets - Administrator Class .................................... $ 90,520,720 $765,055,150 NA
Shares outstanding - Administrator Class ............................ 8,016,940 24,175,082 NA
Net asset value and offering price per share - Administrator Class .. $ 11.29 $ 31.65 NA
Net assets - Institutional Class .................................... $ 92,435,335 NA $ 412,650,247
Shares outstanding - Institutional Class ............................ 8,092,702 NA 14,488,851
Net asset value and offering price per share - Institutional Class .. $ 11.42 NA $ 28.48
-------------- ------------ --------------
Investments at cost .................................................... $ 606,506,596 $953,753,276 $3,085,032,235
-------------- ------------ --------------
Securities on loan, at market value (Note 2) ........................... $ 155,783,652 $223,205,330 $ 0
-------------- ------------ --------------
Premiums received on written options (Note 2) .......................... $ 0 $ 0 $ 22,295,052
-------------- ------------ --------------
58 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Operations--For the Six Months Ended April 30, 2008 (Unaudited)
C&B Mid Common
Cap Value Stock
Fund Fund
------------- -------------
INVESTMENT INCOME
Dividends(1) ......................... $ 8,119,967 $ 3,534,708
Interest ............................. 1,354 163,389
Interest from affiliated securities .. 273,211 2,471,511
Securities lending income, net ....... 276,971 382,047
------------- -------------
Total investment income ................. 8,671,503 6,551,655
------------- -------------
EXPENSES
Advisory fees ........................ 2,298,866 3,744,683
Administration fees
Fund Level ........................ 155,347 259,448
Class A ........................... 53,370 78,604
Class B ........................... 14,968 36,920
Class C ........................... 16,837 22,416
Class D ........................... 577,509 NA
Class Z ........................... NA 2,036,684
Administrator Class ............... 39,654 NA
Institutional Class ............... 27,493 NA
Custody fees ......................... 62,139 103,779
Shareholder servicing fees (Note 3) .. 688,774 1,287,814
Accounting fees ...................... 38,944 35,129
Distribution fees (Note 3)
Class B ........................... 40,093 98,892
Class C ........................... 45,101 60,044
Professional fees .................... 16,091 7,302
Registration fees .................... 41,541 26,147
Shareholder reports .................. 61,528 106,739
Trustees'fees ........................ 4,323 4,323
Other fees and expenses .............. 28,969 6,318
------------- -------------
Total expenses .......................... 4,211,547 7,915,242
------------- -------------
LESS
Waived fees and reimbursed expenses
(Note 3) .......................... (345,917) (1,052,524)
Net expenses ......................... 3,865,630 6,862,718
------------- -------------
Net investment income (loss) ............ 4,805,873 (311,063)
------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Securities, foreign currencies and
foreign currency translation ...... (43,471,354) 29,792,915
Options, swap agreements and short
sale transactions ................. 0 1,570,643
------------- -------------
Net realized gain and loss from
investments .......................... (43,471,354) 31,363,558
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF
Securities, foreign currencies and
foreign currency translation ...... (81,191,471) (108,288,050)
Options, swap agreements and short
sale transactions ................. 0 (3,926,804)
------------- -------------
Net change in unrealized appreciation
(depreciation) of investments ........ (81,191,471) (112,214,854)
------------- -------------
Net realized and unrealized gain
(loss) on investments ................ (124,662,825) (80,851,296)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............ $(119,856,952) $ (81,162,359)
============= =============
(1)Net of foreign withholding taxes
of ................................... $ 0 $ 0
(2) Administrator Class and Institutional Class in Mid Cap Growth Fund
originated on March 31, 2008. Expenses presented for these Classes are for
the one month period from March 31, 2008 to April 30, 2008.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 59
Statements of Operations--For the Six Months Ended April 30, 2008 (Unaudited)
Mid Cap Small Cap Small Cap Small Cap
Growth Growth Opportunities Value
Fund(2) Fund Fund Fund
------------ ------------ ------------- -------------
INVESTMENT INCOME
Dividends(1) ......................... $ 322,477 $ 310,114 $ 3,086,291 $ 14,920,475
Interest ............................. 0 149 27,300 249,011
Interest from affiliated securities .. 65,466 207,618 1,489,518 3,779,574
Securities lending income, net ....... 79,989 436,866 653,598 0
------------ ------------ ------------- -------------
Total investment income ................. 467,932 954,747 5,256,707 18,949,060
------------ ------------ ------------- -------------
EXPENSES
Advisory fees ........................ 577,371 1,765,970 3,411,160 14,699,516
Administration fees
Fund Level ........................ 38,491 99,893 196,437 908,617
Class A ........................... 151,912 243,536 NA 867,767
Class B ........................... 7,481 14,952 NA 143,206
Class C ........................... 3,629 12,076 NA 175,379
Class D ........................... NA NA NA NA
Class Z ........................... 81,437 72,058 NA 5,245,632
Administrator Class ............... 1 44,252 392,874 NA
Institutional Class ............... 1 33,860 NA 146,849
Custody fees ......................... 15,397 39,957 78,575 363,447
Shareholder servicing fees (Note 3) .. 190,871 390,391 880,423 4,052,014
Accounting fees ...................... 17,444 26,928 33,175 97,019
Distribution fees (Note 3)
Class B ........................... 20,039 40,052 NA 383,587
Class C ........................... 9,721 32,345 NA 469,766
Professional fees .................... 15,229 15,163 17,693 29,564
Registration fees .................... 18,864 27,515 12,564 63,020
Shareholder reports .................. 9,164 87,953 33,928 198,702
Trustees'fees ........................ 4,323 4,323 4,323 4,323
Other fees and expenses .............. 4,026 7,299 10,171 38,384
------------ ------------ ------------- -------------
Total expenses ....................... 1,165,401 2,958,523 5,071,323 27,886,792
------------ ------------ ------------- -------------
LESS
Waived fees and reimbursed expenses
(Note 3) .......................... (30,748) (365,139) (356,829) (2,769,843)
Net expenses ......................... 1,134,653 2,593,384 4,714,494 25,116,949
------------ ------------ ------------- -------------
Net investment income (loss) ............ (666,721) (1,638,637) 542,213 (6,167,889)
------------ ------------ ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Securities, foreign currencies and
foreign currency translation ...... 3,656,328 5,913,910 34,093,003 132,682,483
Options, swap agreements and short
sale transactions ................. 0 0 0 (7,651,232)
------------ ------------ ------------- -------------
Net realized gain and loss from
investments .......................... 3,656,328 5,913,910 34,093,003 125,031,251
------------ ------------ ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF
Securities, foreign currencies and
foreign currency translation ...... (24,040,024) (85,441,669) (108,933,051) (523,894,953)
Options, swap agreements and short
sale transactions ................. 0 0 0 14,961,534
------------ ------------ ------------- -------------
Net change in unrealized appreciation
(depreciation) of investments ........ (24,040,024) (85,441,669) (108,933,051) (508,933,419)
------------ ------------ ------------- -------------
Net realized and unrealized gain
(loss) on investments ................ (20,383,696) (79,527,759) (74,840,048) (383,902,168)
------------ ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............ $(21,050,417) $(81,166,396) $ (74,297,835) $(390,070,057)
============ ============ ============= =============
(1)Net of foreign withholding taxes
of ................................... $ 0 $ 0 $ 6,765 $ 295,171
60 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, Year Ended
2008 October
(Unaudited) 31, 2007
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .................................. $ 897,718,698 $ 818,180,774
OPERATIONS
Net investment income (loss) .......................... 4,805,873 2,495,371
Net realized gain (loss) on investments ............... (43,471,354) 142,758,144
Net change in unrealized appreciation (depreciation)
of investments ..................................... (81,191,471) (123,140,198)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................ (119,856,952) 22,113,317
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ............................................ (157,101) (129,710)
Class D ............................................ (1,810,640) (2,464,100)
Class Z ............................................ NA NA
Administrator Class ................................ (552,724) (295,845)
Institutional Class ................................ (679,686) (381,798)
Net realized gain on sales of investments
Class A ............................................ (8,882,013) (4,798,388)
Class B ............................................ (2,603,231) (1,754,248)
Class C ............................................ (2,913,466) (1,369,537)
Class D ............................................ (96,283,334) (69,570,389)
Class Z ............................................ NA NA
Administrator Class ................................ (18,417,909) (9,270,199)
Institutional Class ................................ (14,379,949) (6,136,456)
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................... (146,680,053) (96,170,670)
------------- -------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ................... 7,018,764 31,726,720
Reinvestment of distributions - Class A ............... 8,214,556 4,476,488
Cost of shares redeemed - Class A ..................... (16,403,497) (23,204,542)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ............... (1,170,177) 12,998,666
------------- -------------
Proceeds from shares sold - Class B ................... 186,281 3,411,150
Reinvestment of distributions - Class B ............... 2,546,003 1,714,930
Cost of shares redeemed - Class B ..................... (3,579,566) (4,979,826)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ............... (847,282) 146,254
------------- -------------
Proceeds from shares sold - Class C ................... 839,925 7,377,350
Reinvestment of distributions - Class C ............... 2,743,750 1,337,883
Cost of shares redeemed - Class C ..................... (4,455,046) (2,700,391)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ............... (871,371) 6,014,842
------------- -------------
Proceeds from shares sold - Class D ................... 71,657,924 334,570,385
Reinvestment of distributions - Class D ............... 96,063,585 70,808,233
Cost of shares redeemed - Class D ..................... (307,692,631) (329,876,882)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D ............... (139,971,122) 75,501,736
------------- -------------
Proceeds from shares sold - Class Z ................... NA NA
Reinvestment of distributions - Class Z ............... NA NA
Cost of shares redeemed - Class Z ..................... NA NA
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z ............... NA NA
------------- -------------
Proceeds from shares sold - Administrator Class ....... 11,117,763 93,373,223
Reinvestment of distributions - Administrator Class ... 15,804,466 8,092,708
Cost of shares redeemed - Administrator Class ......... (41,304,375) (74,503,717)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS ... (14,382,146) 26,962,214
------------- -------------
Proceeds from shares sold - Institutional Class ....... 47,334,589 158,953,830
Reinvestment of distributions - Institutional Class ... 15,059,269 6,495,331
Cost of shares redeemed - Institutional Class ......... (49,635,180) (133,477,596)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ... 12,758,678 31,971,565
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL ................. (144,483,420) 153,595,277
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS .................... (411,020,425) 79,537,924
============= =============
ENDING NET ASSETS ........................................ $ 486,698,273 $ 897,718,698
============= =============
- ----------
(1) Administrator Class and Institutional Class in Mid Cap Growth Fund
originated on March 31, 2008. Information presented for these Classes are
for the one month period from March 31, 2008 to April 30, 2008.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 61
Statements of Changes in Net Assets
COMMON STOCK FUND MID CAP GROWTH FUND(1)
------------------------------- ---------------------------
For the Six
For the Six Months Ended For the
Months Ended For the Year April 30, Year Ended
April 30, 2008 Ended October 2008 October
(Unaudited) 31, 2007 (Unaudited) 31, 2007
-------------- -------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .................................. $1,169,835,570 $1,109,461,730 $182,370,941 $151,216,185
OPERATIONS
Net investment income (loss) .......................... (311,063) (3,137,868) (666,721) (1,144,590)
Net realized gain (loss) on investments ............... 31,363,558 187,169,116 3,656,328 35,485,585
Net change in unrealized appreciation (depreciation)
of investments ..................................... (112,214,854) 22,482,474 (24,040,024) 10,829,257
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................ (81,162,359) 206,513,722 (21,050,417) 45,170,252
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ............................................ (356,600) 0 0 0
Class D ............................................ NA NA NA NA
Class Z ............................................ (6,223,545) NA NA NA
Administrator Class ................................ NA NA NA NA
Institutional Class ................................ NA NA NA NA
Net realized gain on sales of investments
Class A ............................................ (9,803,131) (13,744,701) (21,824,690) (13,456,997)
Class B ............................................ (5,181,903) (7,596,727) (1,194,436) (986,175)
Class C ............................................ (3,130,306) (4,181,212) (527,976) (265,145)
Class D ............................................ NA NA NA NA
Class Z ............................................ (163,460,865) (204,174,197) (7,430,771) (4,903,153)
Administrator Class ................................ NA NA NA NA
Institutional Class ................................ NA NA NA NA
-------------- -------------- ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................... (188,156,350) (229,696,837) (30,977,873) (19,611,470)
-------------- -------------- ------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ................... 112,663,075 14,474,513 13,356,583 38,910,546
Reinvestment of distributions - Class A ............... 9,893,384 13,416,447 21,178,965 13,075,687
Cost of shares redeemed - Class A ..................... (41,115,037) (28,054,689) (21,977,419) (45,275,618)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ............... 81,441,422 (163,729) 12,558,129 6,710,615
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class B ................... 679,896 2,209,224 406,412 977,239
Reinvestment of distributions - Class B ............... 4,763,889 6,836,229 1,112,795 930,174
Cost of shares redeemed - Class B ..................... (5,053,043) (10,027,286) (2,009,403) (3,288,230)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ............... 390,742 (981,833) (490,196) (1,380,817)
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class C ................... 2,067,347 2,582,068 658,714 814,740
Reinvestment of distributions - Class C ............... 2,473,560 3,193,025 459,826 235,024
Cost of shares redeemed - Class C ..................... (3,273,948) (5,225,033) (310,571) (628,926)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ............... 1,266,959 550,060 807,969 420,838
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class D ................... NA NA NA NA
Reinvestment of distributions - Class D ............... NA NA NA NA
Cost of shares redeemed - Class D ..................... NA NA NA NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D ............... NA NA NA NA
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class Z ................... 35,138,430 77,092,133 2,881,306 7,269,651
Reinvestment of distributions - Class Z ............... 163,552,562 196,719,861 7,286,742 4,811,130
Cost of shares redeemed - Class Z ..................... (142,349,474) (189,659,537) (5,245,879) (12,235,443)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z ............... 56,341,518 84,152,457 4,922,169 (154,662)
-------------- -------------- ------------ ------------
Proceeds from shares sold - Administrator Class ....... NA NA 10,000 NA
Reinvestment of distributions - Administrator Class ... NA NA NA NA
Cost of shares redeemed - Administrator Class ......... NA NA NA NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS ... NA NA 10,000 NA
-------------- -------------- ------------ ------------
Proceeds from shares sold - Institutional Class ....... NA NA 10,000 NA
Reinvestment of distributions - Institutional Class ... NA NA NA NA
Cost of shares redeemed - Institutional Class ......... NA NA NA NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ... NA NA 10,000 NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL ................. 139,440,641 83,556,955 17,818,071 5,595,974
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................... (129,878,068) 60,373,840 (34,210,219) 31,154,756
============== ============== ============ ============
ENDING NET ASSETS ........................................ $1,039,957,502 $1,169,835,570 $148,160,722 $182,370,941
============== ============== ============ ============
62 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, 2008 Year Ended
(Unaudited) October 31, 2007
-------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ...................................... 447,228 1,373,092
Shares issued in reinvestment of distributions - Class A ... 507,115 201,931
Shares redeemed - Class A .................................. (1,028,011) (1,007,419)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .... (73,668) 567,604
------------ ------------
Shares sold - Class B ...................................... 11,510 150,247
Shares issued in reinvestment of distributions - Class B ... 162,166 78,956
Shares redeemed - Class B .................................. (234,811) (220,269)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .... (61,135) 8,934
------------ ------------
Shares sold - Class C ...................................... 52,874 324,988
Shares issued in reinvestment of distributions - Class C ... 174,650 61,568
Shares redeemed - Class C .................................. (286,453) (119,783)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .... (58,929) 266,773
------------ ------------
Shares sold - Class D ...................................... 4,240,588 14,458,417
Shares issued in reinvestment of distributions - Class D ... 5,901,318 3,182,736
Shares redeemed - Class D .................................. (17,920,158) (14,245,065)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .... (7,778,252) 3,396,088
------------ ------------
Shares sold - Class Z ...................................... NA NA
Shares issued in reinvestment of distributions - Class Z ... NA NA
Shares redeemed - Class Z .................................. NA NA
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .... NA NA
------------ ------------
Shares sold - Administrator Class .......................... 731,018 4,113,343
Shares issued in reinvestment of distributions -
Administrator Class ..................................... 965,683 362,770
Shares redeemed - Administrator Class ...................... (2,720,870) (3,270,300)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ..................................... (1,024,169) 1,205,813
------------ ------------
Shares sold - Institutional Class .......................... 3,027,538 6,606,026
Shares issued in reinvestment of distributions -
Institutional Class ..................................... 915,914 289,818
Shares redeemed - Institutional Class ...................... (3,180,157) (5,612,321)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ..................................... 763,295 1,283,523
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ............................ $ (8,232,858) $ 6,728,735
============ ============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .. 2,970,513 1,364,791
------------ ------------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 63
Statements of Changes in Net Assets
COMMON STOCK FUND MID CAP GROWTH FUND
-------------------------------- --------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
-------------- ---------------- -------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ...................................... 6,491,936 669,198 2,171,488 5,396,336
Shares issued in reinvestment of distributions - Class A ... 554,550 682,424 3,632,756 2,126,112
Shares redeemed - Class A .................................. (2,379,118) (1,318,254) (3,779,088) (6,397,037)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .... 4,667,368 33,368 2,025,156 1,125,411
----------- ----------- ----------- -----------
Shares sold - Class B ...................................... 41,331 116,278 70,184 147,979
Shares issued in reinvestment of distributions - Class B ... 291,191 370,929 206,839 160,098
Shares redeemed - Class B .................................. (306,728) (506,744) (363,066) (501,269)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .... 25,794 (19,537) (86,043) (193,192)
----------- ----------- ----------- -----------
Shares sold - Class C ...................................... 126,223 136,826 116,156 123,843
Shares issued in reinvestment of distributions - Class C ... 151,288 173,346 85,629 40,521
Shares redeemed - Class C .................................. (201,956) (266,098) (61,284) (98,666)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .... 75,555 44,074 140,501 65,698
----------- ----------- ----------- -----------
Shares sold - Class D ...................................... NA NA NA NA
Shares issued in reinvestment of distributions - Class D ... NA NA NA NA
Shares redeemed - Class D .................................. NA NA NA NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .... NA NA NA NA
----------- ----------- ----------- -----------
Shares sold - Class Z ...................................... 1,936,969 3,581,905 502,286 1,043,124
Shares issued in reinvestment of distributions - Class Z ... 8,971,848 9,831,077 1,258,505 784,849
Shares redeemed - Class Z .................................. (7,859,565) (8,578,454) (917,596) (1,782,797)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .... 3,049,252 4,834,528 843,195 45,176
----------- ----------- ----------- -----------
Shares sold - Administrator Class .......................... NA NA 1,905 NA
Shares issued in reinvestment of distributions -
Administrator Class ..................................... NA NA NA NA
Shares redeemed - Administrator Class ...................... NA NA NA NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ..................................... NA NA 1,905 NA
----------- ----------- ----------- -----------
Shares sold - Institutional Class .......................... NA NA 1,905 NA
Shares issued in reinvestment of distributions -
Institutional Class ..................................... NA NA NA NA
Shares redeemed - Institutional Class ...................... NA NA NA NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ..................................... NA NA 1,905 NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ............................ $ 7,817,969 $ 4,892,433 $ 2,926,619 $ 1,043,093
=========== =========== =========== ===========
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .. (6,093,141) 798,067 (666,721) 0
----------- ----------- ----------- -----------
64 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
Small Cap Growth Fund
-----------------------------------
For the
Six Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets................................ $463,544,108 $292,886,990
OPERATIONS
Net investment income (loss)........................ (1,638,637) (3,197,265)
Net realized gain (loss) on investments............. 5,913,910 77,221,834
Net change in unrealized appreciation (depreciation)
of investments................................... (85,441,669) 19,784,218
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.......................................... (81,166,396) 93,808,787
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A.......................................... 0 0
Class Z.......................................... 0 0
Administrator Class.............................. 0 0
Institutional Class.............................. 0 0
Net realized gain on sales of investments
Class A.......................................... (29,161,141) (15,582,655)
Class B.......................................... (2,018,118) (2,180,416)
Class C.......................................... (1,584,750) (756,886)
Class Z.......................................... (5,722,026) (4,055,692)
Administrator Class.............................. (15,809,026) (7,516,815)
Institutional Class.............................. (12,816,987) (6,047,204)
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS.................... (67,112,048) (36,139,668)
------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A................. 80,936,769 100,373,579
Reinvestment of distributions - Class A............. 22,004,281 11,256,743
Cost of shares redeemed - Class A................... (63,978,422) (47,765,376)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A............. 38,962,628 63,864,946
------------ ------------
Proceeds from shares sold - Class B................. 243,694 971,844
Reinvestment of distributions - Class B............. 1,970,777 2,119,310
Cost of shares redeemed - Class B................... (3,255,056) (10,801,018)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B............. (1,040,585) (7,709,864)
------------ ------------
Proceeds from shares sold - Class C................. 1,425,768 3,706,498
Reinvestment of distributions - Class C............. 1,157,737 572,481
Cost of shares redeemed - Class C................... (1,362,606) (1,683,330)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C.............. 1,220,899 2,595,649
------------ ------------
Proceeds from shares sold - Class Z.................. 690,888 3,930,662
Reinvestment of distributions - Class Z.............. 5,532,180 3,918,516
Cost of shares redeemed - Class Z.................... (5,773,828) (7,433,743)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z.............. 449,240 415,435
------------ ------------
Proceeds from shares sold - Administrator Class...... 77,935,055 120,831,747
Reinvestment of distributions - Administrator Class.. 15,530,036 7,142,538
Cost of shares redeemed - Administrator Class........ (79,154,833) (92,578,484)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS.. 14,310,258 35,395,801
------------ ------------
Proceeds from shares sold - Institutional Class...... 57,749,253 30,454,663
Reinvestment of distributions - Institutional Class.. 12,222,925 5,660,954
Cost of shares redeemed - Institutional Class........ (34,584,325) (17,689,585)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS.. 35,387,853 18,426,032
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL................... 89,290,293 112,987,999
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS................... (58,988,151) 170,657,118
------------ ------------
ENDING NET ASSETS....................................... $404,555,957 $463,544,108
============ ============
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 65
Statements of Changes in Net Assets
SMALL CAP OPPORTUNITIES FUND SMALL CAP VALUE FUND
----------------------------------- -----------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
---------------- ---------------- ---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets................................. $ 910,161,940 $ 800,077,699 $ 4,177,653,842 $ 3,500,023,838
Operations
Net investment income (loss)......................... 542,213 2,503,176 (6,167,889) (17,018,686)
Net realized gain (loss) on investments.............. 34,093,003 110,547,125 125,031,251 518,394,262
Net change in unrealized appreciation (depreciation)
of investments.................................... (108,933,051) 50,051,199 (508,933,419) 252,019,887
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................... (74,297,835) 163,101,500 (390,070,057) 753,395,463
------------- ------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A........................................... NA NA (141,933) 0
Class Z........................................... NA NA (1,105,714) 0
Administrator Class............................... (2,608,842) 0 NA NA
Institutional Class............................... NA NA (2,313,466) NA
Net realized gain on sales of investments
Class A........................................... NA NA (93,419,985) (58,821,788)
Class B........................................... NA NA (16,840,469) (12,074,266)
Class C........................................... NA NA (20,212,008) (13,497,685)
Class Z........................................... NA NA (348,362,033) (229,863,190)
Administrator Class............................... (110,577,897) (123,821,125) NA NA
Institutional Class............................... NA NA (57,044,953) 0
------------- ------------- --------------- ---------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..................... (113,186,739) (123,821,125) (539,440,561) (314,256,929)
------------- ------------- --------------- ---------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A.................. NA NA 149,535,892 249,924,269
Reinvestment of distributions - Class A.............. NA NA 91,037,833 57,137,850
Cost of shares redeemed - Class A.................... NA NA (188,771,617) (323,159,164)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A.............. NA NA 51,802,108 (16,097,045)
------------- ------------- --------------- ---------------
Proceeds from shares sold - Class B.................. NA NA 1,288,804 2,596,051
Reinvestment of distributions - Class B.............. NA NA 15,741,113 11,302,227
Cost of shares redeemed - Class B.................... NA NA (17,077,144) (31,534,277)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B.............. NA NA (47,227) (17,635,999)
------------- ------------- --------------- ---------------
Proceeds from shares sold - Class C.................. NA NA 6,537,860 6,263,391
Reinvestment of distributions - Class C.............. NA NA 17,188,714 11,474,049
Cost of shares redeemed - Class C.................... NA NA (16,928,933) (28,594,701)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C.............. NA NA 6,797,641 (10,857,261)
------------- ------------- --------------- ---------------
Proceeds from shares sold - Class Z.................. NA NA 656,828,379 1,496,152,334
Reinvestment of distributions - Class Z.............. NA NA 343,180,478 227,358,770
Cost of shares redeemed - Class Z.................... NA NA (1,170,379,004) (1,449,062,315)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z.............. NA NA (170,370,147) 274,448,789
------------- ------------- --------------- ---------------
Proceeds from shares sold - Administrator Class...... 51,458,645 212,254,384 NA NA
Reinvestment of distributions - Administrator Class.. 109,877,189 119,828,957 NA NA
Cost of shares redeemed - Administrator Class........ (118,958,050) (261,279,475) NA NA
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS.. 42,377,784 70,803,866 NA NA
------------- ------------- --------------- ---------------
Proceeds from shares sold - Institutional Class...... NA NA 655,542,322 25,883,396
Reinvestment of distributions - Institutional Class.. NA NA 59,358,409 NA
Cost of shares redeemed - Institutional Class........ NA NA (234,859,658) (17,250,410)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS.. NA NA 480,041,073 8,632,986
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL................... 42,377,784 70,803,866 368,223,448 238,491,470
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS................... (145,106,790) 110,084,241 (561,287,170) 677,630,004
------------- ------------- --------------- ---------------
ENDING NET ASSETS....................................... $ 765,055,150 $ 910,161,940 $ 3,616,366,672 $ 4,177,653,842
============= ============= =============== ===============
66 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
SMALL CAP GROWTH FUND
----------------------------------
For the
Six Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .......................... 6,800,565 7,065,270
Shares issued in reinvestment of distributions -
Class A ..................................... 1,797,735 861,926
Shares redeemed - Class A ...................... (5,446,176) (3,376,909)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A ..................................... 3,152,124 4,550,287
----------- -----------
Shares sold - Class B .......................... 19,678 71,800
Shares issued in reinvestment of distributions -
Class B ..................................... 168,731 167,534
Shares redeemed - Class B ...................... (285,017) (792,694)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B ..................................... (96,608) (553,360)
----------- -----------
Shares sold - Class C .......................... 113,665 259,770
Shares issued in reinvestment of distributions -
Class C ..................................... 98,952 45,220
Shares redeemed - Class C ...................... (120,070) (123,803)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C ..................................... 92,547 181,187
----------- -----------
Shares sold - Class Z .......................... 59,691 274,133
Shares issued in reinvestment of distributions -
Class Z ..................................... 454,949 301,194
Shares redeemed - Class Z ...................... (440,462) (523,352)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS Z .... ................................ 74,178 51,975
----------- -----------
Shares sold - Administrator Class .............. 6,521,166 8,295,578
Shares issued in reinvestment of distributions -
Administrator Class ......................... 1,254,446 542,746
Shares redeemed - Administrator Class .......... (6,616,415) (6,392,169)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ............................ 1,159,197 2,446,155
----------- -----------
Shares sold - Institutional Class .............. 4,655,019 2,051,797
Shares issued in reinvestment of distributions -
Institutional Class ......................... 977,052 427,888
Shares redeemed - Institutional Class .......... (2,793,297) (1,166,507)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................... 2,838,774 1,313,178
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
RESULTING FROM CAPITAL SHARE TRANSACTIONS ...... $ 7,220,212 $ 7,989,422
=========== ===========
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) .................................. (1,638,637) 0
----------- -----------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 67
Statements of Changes in Net Assets
SMALL CAP OPPORTUNITIES FUND SMALL CAP VALUE FUND
---------------------------------- ----------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
---------------- ---------------- ---------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .......................... NA NA 5,132,588 7,464,979
Shares issued in reinvestment of distributions -
Class A ..................................... NA NA 3,221,474 1,855,125
Shares redeemed - Class A ...................... NA NA (6,515,325) (9,710,247)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A ..................................... NA NA 1,838,737 (390,143)
----------- ----------- ------------ ------------
Shares sold - Class B .......................... NA NA 49,208 86,150
Shares issued in reinvestment of distributions -
Class B ..................................... NA NA 602,415 389,195
Shares redeemed - Class B ...................... NA NA (639,816) (1,007,264)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B ..................................... NA NA 11,807 (531,919)
----------- ----------- ------------ ------------
Shares sold - Class C .......................... NA NA 248,772 208,819
Shares issued in reinvestment of distributions -
Class C ..................................... NA NA 655,557 394,026
Shares redeemed - Class C ...................... NA NA (633,336) (924,913)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C ..................................... NA NA 270,993 (322,068)
----------- ----------- ------------ ------------
Shares sold - Class Z .......................... NA NA 22,470,535 44,393,827
Shares issued in reinvestment of distributions -
Class Z ..................................... NA NA 11,970,313 7,296,494
Shares redeemed - Class Z ...................... NA NA (37,586,903) (42,996,852)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS Z .... ................................ NA NA (3,146,055) 8,693,469
----------- ----------- ------------ ------------
Shares sold - Administrator Class .............. 1,591,141 5,868,049 NA NA
Shares issued in reinvestment of distributions -
Administrator Class ......................... 3,416,006 3,514,046 NA NA
Shares redeemed - Administrator Class .......... (3,771,273) (7,190,893) NA NA
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ......................... 1,235,874 2,191,202 NA NA
----------- ----------- ------------ ------------
Shares sold - Institutional Class .............. NA NA 20,056,400 709,938
Shares issued in reinvestment of distributions -
Institutional Class ......................... NA NA 2,067,848 NA
Shares redeemed - Institutional Class .......... NA NA (7,872,197) (473,138)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................... NA NA 14,252,051 236,800
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
RESULTING FROM CAPITAL SHARE TRANSACTIONS ...... $ 1,235,874 $ 2,191,202 $ 13,227,533 $ 7,686,139
=========== =========== ============ ============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) .................................. 115,690 2,182,319 (39,416,500) (29,687,498)
----------- ----------- ------------ ------------
68 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net Distributions
Value Per Investment Gain (Loss) Investment from Net
Share Income (Loss) on Investments Income Realized Gains
--------- ------------- -------------- ------------- --------------
C&B MID CAP VALUE FUND
CLASS A
November 1, 2007 to April 30, 2008 (Unaudited) .. $21.80 0.11(6) (2.96) (0.06) (4.11)
November 1, 2006 to October 31, 2007 ............ $23.79 0.03(6) 0.70 (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, 2007 to April 30, 2008 (Unaudited) .. $21.29 0.05(6) (2.90) 0.00 (4.11)
November 1, 2006 to October 31, 2007 ............ $23.38 (0.14)(6) 0.71 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, 2007 to April 30, 2008 (Unaudited) .. $21.29 0.05(6) (2.89) 0.00 (4.11)
November 1, 2006 to October 31, 2007 ............ $23.39 (0.14)(6) 0.70 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, 2007 to April 30, 2008 (Unaudited) .. $21.89 0.13(6) (3.00) (0.06) (4.11)
November 1, 2006 to October 31, 2007 ............ $23.86 0.06(6) 0.71 (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
ADMINISTRATOR CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. $21.98 0.14(6) (3.01) (0.10) (4.11)
November 1, 2006 to October 31, 2007 ............ $23.93 0.08(6) 0.71 (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, 2007 to April 30, 2008 (Unaudited) .. $22.06 0.15(6) (3.00) (0.16) (4.11)
November 1, 2006 to October 31, 2007 ............ $24.02 0.14(6) 0.71 (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
- ----------
(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.
Financial Highlights
Wells Fargo Advantage Small and Mid Cap Stock Funds 69
Ending Ratio to Average Net Assets (Annualized)(1)
Distributions Net Asset -----------------------------------------------
in Exceess of Value Per Net Investment Gross Expenses Net
Realized Gains Share Income (Loss) Expenses Waived Expenses
-------------- --------- -------------- -------- -------- --------
C&B MID CAP VALUE FUND
CLASS A
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.78 1.41% 1.40% (0.01)% 1.40%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.80 0.15% 1.36% 0.00% 1.36%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.79 0.21% 1.40% (0.02)% 1.38%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.76 (0.40)% 1.38% 0.00% 1.38%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.89 (0.18)% 1.41% (0.01)% 1.40%
CLASS B
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.33 0.69% 2.15% 0.00% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.29 (0.60)% 2.11% 0.00% 2.11%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.38 (0.54)% 2.15% (0.02)% 2.13%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.57 (1.15)% 2.13% 0.00% 2.13%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.86 (0.95)% 2.16% (0.01)% 2.15%
CLASS C
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.34 0.70% 2.13% (0.01)% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.29 (0.60)% 2.11% 0.00% 2.11%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.39 (0.55)% 2.15% (0.02)% 2.13%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.57 (1.15)% 2.13% 0.00% 2.13%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.86 (0.98)% 2.16% (0.01)% 2.15%
CLASS D
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.85 1.54% 1.40% (0.14)% 1.25%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.89 0.26% 1.36% (0.11)% 1.25%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.86 0.35% 1.40% (0.15)% 1.25%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.79 (0.27)% 1.37% (0.12)% 1.25%
November 1, 2003 to October 31, 2004 ............ 0.00 $18.89 (0.08)% 1.19% (0.04)% 1.15%
November 1, 2002 to October 31, 2003 ............ 0.00 $17.96 0.01% 1.27% 0.00% 1.27%
ADMINISTRATOR CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.90 1.67% 1.22% (0.07)% 1.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.98 0.35% 1.18% (0.03)% 1.15%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.93 0.46% 1.22% (0.07)% 1.15%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.82 (0.12)% 1.13% (0.03)% 1.10%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.90 0.03% 1.17% (0.02)% 1.15%
INSTITUTIONAL CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.94 1.82% 0.96% (0.06)% 0.90%
November 1, 2006 to October 31, 2007 ............ 0.00 $22.06 0.60% 0.91% (0.01)% 0.90%
November 1, 2005 to October 31, 2006 ............ 0.00 $24.02 0.74% 0.95% (0.05)% 0.90%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.88 0.07% 0.94% (0.04)% 0.90%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.91 0.40% 0.96% (0.06)% 0.90%
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, 2007 to April 30, 2008 (Unaudited) .. (14.76)% 15% $ 33,220
November 1, 2006 to October 31, 2007 ............ 2.95% 56% $ 50,622
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, 2007 to April 30, 2008 (Unaudited) .. (15.08)% 15% $ 8,747
November 1, 2006 to October 31, 2007 ............ 2.23% 56% $ 14,293
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, 2007 to April 30, 2008 (Unaudited) .. (15.03)% 15% $ 10,045
November 1, 2006 to October 31, 2007 ............ 2.18% 56% $ 16,171
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, 2007 to April 30, 2008 (Unaudited) .. (14.72)% 15% $315,337
November 1, 2006 to October 31, 2007 ............ 3.12% 56% $634,872
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
ADMINISTRATOR CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. (14.67)% 15% $ 54,040
November 1, 2006 to October 31, 2007 ............ 3.18% 56% $102,201
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, 2007 to April 30, 2008 (Unaudited) .. (14.56)% 15% $ 65,308
November 1, 2006 to October 31, 2007 ............ 3.44% 56% $ 79,559
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
70 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net Distributions
Value Per Investment Gain (Loss) Investment from Net
Share Income (Loss) on Investments Income Realized Gains
--------- ------------- -------------- ------------- --------------
COMMON STOCK FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... $22.66 (0.00)(6) (1.61) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $23.84 (0.05)(6) 3.98 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
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... $21.10 (0.07)(6) (1.39) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $22.67 (0.20)(6) 3.74 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
Class C
November 1, 2007 to April
30, 2008 (Unaudited) .... $21.09 (0.07)(6) (1.39) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $22.67 (0.20)(6) 3.73 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
Class Z
November 1, 2007 to April
30, 2008 (Unaudited) .... $23.07 (0.00)(6) (1.64) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $24.18 (0.05)(6) 4.05 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
MID CAP GROWTH FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... $ 7.72 (0.02)(6) (0.80) 0.00 (1.31)
November 1, 2006 to October
31, 2007 ................ $ 6.69 (0.04)(6) 1.95 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
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... $ 7.24 (0.04)(6) (0.75) 0.00 (1.31)
November 1, 2006 to October
31, 2007 ................ $ 6.37 (0.09)(6) 1.84 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, 2007 to April
30, 2008 (Unaudited) .... $ 7.23 (0.04)(6) (0.75) 0.00 (1.31)
November 1, 2006 to October
31, 2007 ................ $ 6.36 (0.09)(6) 1.84 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
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 71
Financial Highlights
Ratio to
Ending Average Net Assets (Annualized)(1)
Net ----------------------------------------
Distributions Asset Net
in Exceess of Value Investment Portfolio Net Assets at
Realized Per Income Gross Expenses Net Total Turnover End of Period
Gains Share (Loss) Expenses Waived Expenses Return(2) Rate(3) (000's omitted)
------------- ------ ---------- -------- -------- -------- --------- --------- ---------------
COMMON STOCK FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $17.44 0.00% 1.36% (0.05)% 1.31% (6.89)% 44% $ 129,450
November 1, 2006 to October
31, 2007 ................ 0.00 $22.66 (0.25)% 1.37% (0.06)% 1.31% 19.74% 58% $ 62,456
November 1, 2005 to October
31, 2006 ................ 0.00 $23.84 (0.15)% 1.34% (0.03)% 1.31% 19.11% 56% $ 64,915
January 1, 2005 to October
31, 2005(8) ............. 0.00 $22.97 (0.48)% 1.44% (0.03)% 1.41% 4.34% 33% $ 62,462
January 1, 2004 to December
31, 2004 ................ 0.00 $22.40 (0.62)% 1.58% (0.04)% 1.54% 9.67% 42% $ 73,612
January 1, 2003 to December
31, 2003 ................ 0.00 $21.98 (0.62)% 1.55% (0.01)% 1.54% 38.50% 42% $ 81,068
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $16.03 (0.80)% 2.11% (0.05)% 2.06% (7.27)% 44% $ 24,283
November 1, 2006 to October
31, 2007 ................ 0.00 $21.10 (1.00)% 2.12% (0.06)% 2.06% 18.86% 58% $ 31,415
November 1, 2005 to October
31, 2006 ................ 0.00 $22.67 (0.90)% 2.09% (0.03)% 2.06% 18.23% 56% $ 34,205
January 1, 2005 to October
31, 2005(8) ............. 0.00 $22.13 (1.23)% 2.20% (0.04)% 2.16% 3.63% 33% $ 34,744
January 1, 2004 to December
31, 2004 ................ 0.00 $21.74 (1.36)% 2.32% (0.04)% 2.28% 8.89% 42% $ 37,908
January 1, 2003 to December
31, 2003 ................ 0.00 $21.53 (1.41)% 2.35% (0.01)% 2.34% 37.40% 42% $ 38,830
Class C
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $16.02 (0.80)% 2.10% (0.04)% 2.06% (7.28)% 44% $ 15,267
November 1, 2006 to October
31, 2007 ................ 0.00 $21.09 (1.00)% 2.12% (0.06)% 2.06% 18.82% 58% $ 18,501
November 1, 2005 to October
31, 2006 ................ 0.00 $22.67 (0.90)% 2.09% (0.03)% 2.06% 18.24% 56% $ 18,885
January 1, 2005 to October
31, 2005(8) ............. 0.00 $22.13 (1.25)% 2.21% (0.04)% 2.17% 3.68% 33% $ 20,177
January 1, 2004 to December
31, 2004 ................ 0.00 $21.73 (1.38)% 2.35% (0.04)% 2.31% 8.84% 42% $ 26,375
January 1, 2003 to December
31, 2003 ................ 0.00 $21.53 (1.41)% 2.35% (0.01)% 2.34% 37.31% 42% $ 34,025
Class Z
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $17.82 (0.03)% 1.51% (0.22)% 1.29% (6.88)% 44% $ 870,957
November 1, 2006 to October
31, 2007 ................ 0.00 $23.07 (0.23)% 1.54% (0.25)% 1.29% 19.75% 58% $1,057,463
November 1, 2005 to October
31, 2006 ................ 0.00 $24.18 (0.13)% 1.51% (0.22)% 1.29% 19.14% 56% $ 991,457
January 1, 2005 to October
31, 2005(8) ............. 0.00 $23.25 (0.38)% 1.47% (0.16)% 1.31% 4.42% 33% $1,009,088
January 1, 2004 to December
31, 2004 ................ 0.00 $22.65 (0.38)% 1.34% (0.04)% 1.30% 9.96% 42% $1,162,236
January 1, 2003 to December
31, 2003 ................ 0.00 $22.15 (0.42)% 1.36% (0.01)% 1.35% 38.70% 42% $1,437,055
MID CAP GROWTH FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $ 5.59 (0.79)% 1.44% (0.04)% 1.40% (11.30)% 32% $ 104,383
November 1, 2006 to October
31, 2007 ................ 0.00 $ 7.72 (0.60)% 1.42% (0.02)% 1.40% 31.90% 116% $ 128,502
November 1, 2005 to October
31, 2006 ................ 0.00 $ 6.69 (0.69)% 1.48% (0.08)% 1.40% 14.38% 123% $ 103,816
October 1, 2005 to October
31, 2005(5) ............. 0.00 $ 6.37 (0.96)% 1.41% (0.01)% 1.40% (2.00)% 13% $ 107,706
October 1, 2004 to September
30, 2005 ................ 0.00 $ 6.50 (1.19)% 1.42% (0.01)% 1.41% 19.17% 143% $ 111,103
October 1, 2003 to September
30, 2004 ................ 0.00 $ 5.84 (0.44)% 1.50% (0.07)% 1.43% 14.73% 180% $ 93,024
July 1, 2003 to September
30, 2003(7) ............. 0.00 $ 5.09 (1.03)% 1.42% 0.00% 1.42% 6.71% 55% $ 87,980
July 1, 2002 to June 30,
2003 .................... 0.00 $ 4.77 (0.65)% 1.86% (0.37)% 1.49% (1.04)% 142% $ 85,320
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $ 5.14 (1.55)% 2.19% (0.04)% 2.15% (11.70)% 32% $ 4,601
November 1, 2006 to October
31, 2007 ................ 0.00 $ 7.24 (1.36)% 2.17% (0.02)% 2.15% 30.86% 116% $ 7,109
November 1, 2005 to October
31, 2006 ................ 0.00 $ 6.37 (1.43)% 2.23% (0.08)% 2.15% 13.58% 123% $ 7,482
October 1, 2005 to October
31, 2005(5) ............. 0.00 $ 6.13 (1.71)% 2.16% (0.01)% 2.15% (2.08)% 13% $ 8,355
October 1, 2004 to September
30, 2005 ................ 0.00 $ 6.26 (2.00)% 2.17% (0.01)% 2.16% 18.25% 143% $ 8,829
October 1, 2003 to September
30, 2004 ................ 0.00 $ 5.68 (0.64)% 2.26% (0.08)% 2.18% 13.83% 180% $ 6,877
July 1, 2003 to September
30, 2003(7) ............. 0.00 $ 4.99 (1.78)% 2.17% 0.00% 2.17% 6.62% 55% $ 5,216
June 9, 2003(4) to June 30,
2003 .................... 0.00 $ 4.68 3.82% 2.22% (0.08)% 2.14% 0.21% 142% $ 4,599
Class C
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $ 5.13 (1.54)% 2.18% (0.03)% 2.15% (11.71)% 32% $ 2,630
November 1, 2006 to October
31, 2007 ................ 0.00 $ 7.23 (1.36)% 2.17% (0.02)% 2.15% 30.91% 116% $ 2,693
November 1, 2005 to October
31, 2006 ................ 0.00 $ 6.36 (1.45)% 2.23% (0.08)% 2.15% 13.40% 123% $ 1,950
October 1, 2005 to October
31, 2005(5) ............. 0.00 $ 6.13 (1.71)% 2.16% (0.01)% 2.15% (2.08)% 13% $ 1,648
October 1, 2004 to September
30, 2005 ................ 0.00 $ 6.26 (2.00)% 2.17% (0.01)% 2.16% 18.25% 143% $ 1,657
October 1, 2003 to September
30, 2004 ................ 0.00 $ 5.68 (0.70)% 2.26% (0.08)% 2.18% 14.06% 180% $ 1,034
July 1, 2003 to September
30, 2003(7) ............. 0.00 $ 4.98 (1.78)% 2.17% 0.00% 2.17% 6.41% 55% $ 607
June 9, 2003(4) to June 30,
2003 .................... 0.00 $ 4.68 4.05% 2.22% (0.10)% 2.12% 0.21% 142% $ 493
72 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions Distributions
Net Asset Net and Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Realized
Share Income (Loss) Investments Income Gains
--------- ------------- -------------- ------------- -------------
MID CAP GROWTH FUND (continued)
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. $ 7.68 (0.03)(6) (0.79) 0.00 (1.31)
November 1, 2006 to October 31, 2007 ............ $ 6.67 (0.05)(6) 1.94 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
Administrator Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. $ 5.41 (0.00) 0.18 0.00 0.00
Institutional Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. $ 5.41 (0.00) 0.18 0.00 0.00
SMALL CAP GROWTH FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .. $16.02 (0.05)(6) (1.82) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $14.03 (0.13)(6) 3.66 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
Class B
November 1, 2007 to April 30, 2008 (Unaudited) .. $15.41 (0.10)(6) (1.70) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $13.65 (0.23)(6) 3.53 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
Class C
November 1, 2007 to April 30, 2008 (Unaudited)... $15.43 (0.10)(6) (1.70) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $13.66 (0.23)(6) 3.54 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
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. $15.93 (0.06)(6) (1.79) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $13.99 (0.16)(6) 3.64 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, 2007 to April 30, 2008 (Unaudited) .. $16 17 (0.04)(6) (1.84) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $14.12 (0.10)(6) 3.69 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
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) .. $16.30 (0.03)(6) (1.85) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $14.19 (0.06)(6) 3.71 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
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 73
Financial Highlights
Ratio to
Average Net Assets (Annualized)(1)
-----------------------------------------
Distributions Ending Net
in Exceess Net Asset Investment
of Realized Value Per Income Gross Expenses Net
Gains Share (Loss) Expenses Waived Expenses
------------- --------- ---------- -------- -------- --------
MID CAP GROWTH FUND (continued)
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $ 5.55 (0.94)% 1.59% (0.05)% 1.54%
November 1, 2006 to October 31, 2007 ............ 0.00 $ 7.68 (0.78)% 1.59% (0.02)% 1.57%
November 1, 2005 to October 31, 2006 ............ 0.00 $ 6.67 (0.84)% 1.65% (0.08)% 1.57%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $ 6.37 (1.13)% 1.58% (0.01)% 1.57%
April 11, 2005(4) to September 30, 2005 ......... 0.00 $ 6.50 (1.69)% 1.56% (0.01)% 1.55%
Administrator Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. 0.00 $ 5.59 (0.60)% 1.25% (0.10)% 1.15%
Institutional Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. 0.00 $ 5.59 (0.35)% 0.97% (0.07)% 0.90%
SMALL CAP GROWTH FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.15 (0.92)% 1.57% (0.17)% 1.40%
November 1, 2006 to October 31, 2007 ............ 0.00 $16.02 (0.91)% 1.55% (0.15)% 1.40%
November 1, 2005 to October 31, 2006 ............ 0.00 $14.03 (1.15)% 1.61% (0.21)% 1.40%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.19 (1.27)% 1.56% (0.16)% 1.40%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.53 (1.14)% 1.58% (0.18)% 1.40%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.67 (1.08)% 1.69% (0.29)% 1.40%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.44 (1.13)% 1.69% (0.29)% 1.40%
Class B
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $10.61 (1.67)% 2.32% (0.17)% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $15.41 (1.70)% 2.30% (0.15)% 2.15%
November 1, 2005 to October 31, 2006 ............ 0.00 $13.65 (1.90)% 2.36% (0.21)% 2.15%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $11.97 (2.02)% 2.31% (0.16)% 2.15%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.31 (1.90)% 2.31% (0.16)% 2.15%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.57 (1.86)% 2.48% (0.33)% 2.15%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.41 (1.88)% 2.43% (0.28)% 2.15%
Class C
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $10.63 (1.67)% 2.29% (0.14)% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $15.43 (1.66)% 2.30% (0.15)% 2.15%
November 1, 2005 to October 31, 2006 ............ 0.00 $13.66 (1.90)% 2.36% (0.21)% 2.15%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $11.98 (2.02)% 2.31% (0.16)% 2.15%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.33 (1.90)% 2.31% (0.16)% 2.15%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.58 (1.86)% 2.48% (0.33)% 2.15%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.42 (1.91)% 2.47% (0.32)% 2.15%
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.08 (1.07)% 1.72% (0.17)% 1.55%
November 1, 2006 to October 31, 2007 ............ 0.00 $15.93 (1.09)% 1.72% (0.15)% 1.57%
November 1, 2005 to October 31, 2006 ............ 0.00 $13.99 (1.32)% 1.78% (0.21)% 1.57%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.18 (1.44)% 1.73% (0.16)% 1.57%
April 11, 2005(4) to September 30, 2005 ......... 0.00 $12.52 (1.33)% 1.72% (0.15)% 1.57%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.29 (0.72)% 1.39% (0.19)% 1.20%
November 1, 2006 to October 31, 2007 ............ 0.00 $16.17 (0.71)% 1.37% (0.17)% 1.20%
November 1, 2005 to October 31, 2006 ............ 0.00 $14.12 (0.95)% 1.43% (0.23)% 1.20%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.24 (1.07)% 1.38% (0.18)% 1.20%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.59 (0.94)% 1.37% (0.17)% 1.20%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.70 (1.20)% 1.54% (0.34)% 1.20%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.44 (0.99)% 1.46% (0.26)% 1.20%
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.42 (0.42)% 1.12% (0.22)% 0.90%
November 1, 2006 to October 31, 2007 ............ 0.00 $16.30 (0.41)% 1.10% (0.20)% 0.90%
November 1, 2005 to October 31, 2006 ............ 0.00 $14.19 (0.64)% 0.64)% (0.26)% 0.90%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.26 (0.77)% 1.11% (0.21)% 0.90%
April 11, 2005(4) to September 30, 2005 ......... 0.00 $12.61 (0.65)% 0.65)% (0.23)% 0.92%
Net Assets
at
End of
Portfolio Period
Total Turnover (000's
Return(2) Rate(3) omitted)
--------- --------- ----------
MID CAP GROWTH FUND (continued)
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. (11.36)% 32% $ 36,525
November 1, 2006 to October 31, 2007 ............ 31.66% 116% $ 44,067
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
Administrator Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. (11.30)% 32% $ 11
Institutional Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. (11.30)% 32% $ 11
SMALL CAP GROWTH FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.34)% 41% $174,011
November 1, 2006 to October 31, 2007 ............ 27.63% 122% $199,396
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
Class B
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.61)% 41% $ 8,828
November 1, 2006 to October 31, 2007 ............ 26.62% 122% $ 14,311
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
Class C
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.58)% 41% $ 8,000
November 1, 2006 to October 31, 2007 ............ 26.68% 122% $ 10,187
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
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.31)% 41% $ 30,761
November 1, 2006 to October 31, 2007 ............ 27.32% 122% $ 43,069
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, 2007 to April 30, 2008 (Unaudited) .. (17.22)% 41% $ 90,521
November 1, 2006 to October 31, 2007 ............ 27.90% 122% $110,917
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
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.07)% 41% $ 92,435
November 1, 2006 to October 31, 2007 ............ 28.22% 122% $ 85,664
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
74 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Net Realized Distributions
Net Asset Investment and Unrealized from Net Distributions Distributions
Value Per Income Gain (Loss) Investment from Net in Exceess of
Share (Loss) on Investments Income Realized Gains Realized Gains
--------- ---------- -------------- ------------- -------------- --------------
SMALL CAP OPPORTUNITIES FUND
Administrator Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $39.68 0.02(6) (3.06) (0.10) (4.89) 0.00
November 1, 2006 to October 31, 2007.... $38.56 0.11 6.99 0.00 (5.98) 0.00
November 1, 2005 to October 31, 2006.... $33.97 (0.04) 7.30 0.00 (2.67) 0.00
October 1, 2005 to October 31, 2005(5).. $34.93 (0.01) (0.95) 0.00 0.00 0.00
October 1, 2004 to September 30, 2005... $33.46 (0.09) 6.05 0.00 (4.49) 0.00
October 1, 2003 to September 30, 2004... $27.57 (0.08) 6.93 0.00 (0.96) 0.00
October 1, 2002 to September 30, 2003... $22.70 (0.13) 6.32 0.00 (1.32) 0.00
SMALL CAP VALUE FUND
Class A
November 1, 2007 to April 30, 2008
(Unaudited).......................... $36.28 (0.06)(6) (3.30) (0.01) (4.78) 0.00
November 1, 2006 to October 31, 2007.... $32.63 (0.15)(6) 6.76 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $31.17 (0.04) 4.61 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $29.19 (0.18) 2.67 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $27.40 (0.27)(6) 5.51 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.92 (0.12)(6) 9.26 (0.01) (0.65) 0.00
Class B
November 1, 2007 to April 30, 2008
(Unaudited).......................... $33.98 (0.16)(6) (3.09) 0.00 (4.78) 0.00
November 1, 2006 to October 31, 2007.... $30.96 (0.38)(6) 6.36 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $29.92 (0.35) 4.50 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $28.21 (0.40) 2.62 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $26.79 (0.47)(6) 5.34 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.66 (0.29)(6) 9.08 (0.01) (0.65) 0.00
Class C
November 1, 2007 to April 30, 2008
(Unaudited).......................... $34.07 (0.15)(6) (3.11) 0.00 (4.78) 0.00
November 1, 2006 to October 31, 2007.... $31.03 (0.38)(6) 6.38 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $29.99 (0.34) 4.49 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $28.27 (0.44) 2.67 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $26.83 (0.47)(6) 5.36 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.68 (0.28)(6) 9.09 (0.01) (0.65) 0.00
Class Z
November 1, 2007 to April 30, 2008
(Unaudited).......................... $36.73 (0.05)(6) (3.35) (0.01) (4.78) 0.00
November 1, 2006 to October 31, 2007.... $32.98 (0.13)(6) 6.84 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $31.45 (0.02) 4.66 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $29.40 (0.15) 2.71 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $27.53 (0.22)(6) 5.54 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.98 (0.09)(6) 9.30 (0.01) (0.65) 0.00
Institutional Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $36.77 0.21 (3.35) (0.17) (4.78) 0.00
July 31, 2007(4) to October 31, 2007.... $34.30 0.01(6) 2.46 0.00 0.00 0.00
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 75
Financial Highlights
Ratio to Average
Net Assets (Annualized)(1)
----------------------------------------
Ending Net
Net Asset Investment Portfolio Net Assets at
Value Per Income Gross Expenses Net Total Turnover End of Period
Share (Loss) Expenses Waived Expenses Return(2) Rate(3) (000's omitted)
--------- ---------- -------- -------- -------- --------- --------- ---------------
SMALL CAP OPPORTUNITIES FUND
Administrator Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $31.65 0.14% 1.30% (0.10)% 1.20% (7.83)% 34% $ 765,055
November 1, 2006 to October 31, 2007.... $39.68 0.29% 1.33% (0.13)% 1.20% 20.94% 65% $ 910,162
November 1, 2005 to October 31, 2006.... $38.56 (0.11)% 1.34% (0.14)% 1.20% 22.57% 79% $ 800,078
October 1, 2005 to October 31, 2005(5).. $33.97 (0.35)% 1.33% (0.13)% 1.20% (2.78)% 7% $ 704,714
October 1, 2004 to September 30, 2005... $34.93 (0.28)% 1.29% (0.09)% 1.20% 18.76% 107% $ 725,651
October 1, 2003 to September 30, 2004... $33.46 (0.27)% 1.30% (0.10)% 1.20% 25.25% 113% $ 534,600
October 1, 2002 to September 30, 2003... $27.57 (0.57)% 1.31% (0.11)% 1.20% 28.47% 152% $ 381,786
SMALL CAP VALUE FUND
Class A
November 1, 2007 to April 30, 2008
(Unaudited).......................... $28.13 (0.39)% 1.43% 0.00% 1.44% (9.32)% 11% $ 606,374
November 1, 2006 to October 31, 2007.... $36.28 (0.45)% 1.44% 0.00% 1.44% 21.87% 48% $ 715,334
November 1, 2005 to October 31, 2006.... $32.63 (0.15)% 1.44% (0.01)% 1.43% 15.44% 33% $ 656,151
January 1, 2005 to October 31, 2005(8).. $31.17 (0.70)% 1.50% (0.03)% 1.47% 8.66% 33% $ 606,811
January 1, 2004 to December 31, 2004.... $29.19 (0.96)% 1.57% (0.04)% 1.53% 19.89% 34% $ 598,226
January 1, 2003 to December 31, 2003.... $27.40 (0.55)% 1.56% (0.02)% 1.54% 48.49% 30% $ 673,580
Class B
November 1, 2007 to April 30, 2008
(Unaudited).......................... $25.95 (1.15)% 2.18% 0.00% 2.19% (9.65)% 11% $ 94,607
November 1, 2006 to October 31, 2007.... $33.98 (1.20)% 2.19% 0.00% 2.19% 20.94% 48% $ 123,492
November 1, 2005 to October 31, 2006.... $30.96 (0.91)% 2.19% (0.01)% 2.18% 14.61% 33% $ 128,970
January 1, 2005 to October 31, 2005(8).. $29.92 (1.46)% 2.26% (0.02)% 2.24% 7.99% 33% $ 133,825
January 1, 2004 to December 31, 2004.... $28.21 (1.71)% 2.33% (0.05)% 2.28% 18.95% 34% $ 136,825
January 1, 2003 to December 31, 2003.... $26.79 (1.37)% 2.36% (0.01)% 2.35% 47.28% 30% $ 126,152
Class C
November 1, 2007 to April 30, 2008
(Unaudited).......................... $26.03 (1.14)% 2.18% 0.00% 2.19% (9.66)% 11% $ 119,358
November 1, 2006 to October 31, 2007.... $34.07 (1.20)% 2.19% 0.00% 2.19% 20.96% 48% $ 146,997
November 1, 2005 to October 31, 2006.... $31.03 (0.91)% 2.19% (0.01)% 2.18% 14.57% 33% $ 143,872
January 1, 2005 to October 31, 2005(8).. $29.99 (1.46)% 2.26% (0.02)% 2.24% 8.01% 33% $ 146,162
January 1, 2004 to December 31, 2004.... $28.27 (1.71)% 2.34% (0.05)% 2.29% 19.00% 34% $ 157,329
January 1, 2003 to December 31, 2003.... $26.83 (1.32)% 2.34% (0.02)% 2.32% 47.34% 30% $ 158,942
Class Z
November 1, 2007 to April 30, 2008
(Unaudited).......................... $28.54 (0.33)% 1.58% (0.22)% 1.36% (9.29)% 11% $2,383,378
November 1, 2006 to October 31, 2007.... $36.73 (0.37)% 1.61% (0.25)% 1.36% 21.95% 48% $3,183,124
November 1, 2005 to October 31, 2006.... $32.98 (0.05)% 1.61% (0.25)% 1.36% 15.53% 33% $2,571,031
January 1, 2005 to October 31, 2005(8).. $31.45 (0.57)% 1.58% (0.24)% 1.34% 8.83% 33% $1,926,165
January 1, 2004 to December 31, 2004.... $29.40 (0.79)% 1.40% (0.04)% 1.36% 20.09% 34% $1,359,158
January 1, 2003 to December 31, 2003.... $27.53 (0.41)% 1.42% (0.02)% 1.40% 48.70% 30% $1,167,094
Institutional Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $28.48 0.16% 0.99% (0.04)% 0.95% (9.12)% 11% $ 412,650
July 31, 2007(4) to October 31, 2007.... $36.77 0.13% 0.97% (0.03)% 0.94% 7.20% 48% $ 8,707
76 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The Trust commenced operations on November 8, 1999, and at April 30,
2008, was comprised of 111 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 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.
Under the Trust's organizational documents, their officers and directors are
indemnified against certain liabilities that may arise out of performance of
their duties to the Trust. Additionally, in the normal course of business, the
Trust may enter into contracts with service providers that contain a variety of
indemnification clauses. The Trust's maximum exposure under these arrangements
is dependent on future claims that may be made against the 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
Wells Fargo Advantage Small and Mid Cap Stock Funds 77
Notes to Financial Statements
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 with original maturities of 60 days or less and other short-term
debt securities in which cash collateral received for securities loaned may be
invested, 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.
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 such positions
were held by the Small Cap Value Fund at April 30, 2008:
% of Voting
Market Unrealized Dividend Shares
Security Name Quantity Cost Value Gain/Loss Income Outstanding
- -------------------------------------- ------------- -------------- --------------- --------------- ------------- -----------
Apex Silver Mines Limited 5,174,700.00 $72,970,958.07 $ 52,005,735.00 $(20,965,223.07) $ 0 8.78%
Argo Group International Holdings Ltd 1,706,900.00 73,585,044.61 61,141,158.00 (12,443,886.61) 0 5.56%
Capstead Mortgage Corporation 2,881,800.00 36,344,500.65 37,175,220.00 830,719.35 1,206,492.00 5.82%
Champion Enterprises Incorporated 7,741,200.00 72,971,189.48 79,889,184.00 6,917,994.52 0 9.98%
Chesapeake Corporation 1,114,500.00 16,259,861.39 4,881,510.00 (11,378,351.39) 0 5.57%
China Grentech Corporation Limited Adr 3,124,194.00 37,212,916.29 14,777,437.62 (22,435,478.67) 0 12.50%
Constar International Incorporated 1,157,940.00 8,823,251.05 3,392,764.20 (5,430,486.85) 0 8.93%
Covenant Transportation Group
Incorporated 1,110,200.00 16,896,448.39 6,361,446.00 (10,535,002.39) 0 9.51%
Cray Incorporated 3,338,600.00 34,470,925.24 20,799,478.00 (13,671,447.24) 0 10.24%
Credence Systems Corporation 7,274,300.00 37,271,246.37 7,565,272.00 (29,705,974.37) 0 7.12%
Cross Country Healthcare Incorporated 2,517,800.00 45,834,831.02 30,112,888.00 (15,721,943.02) 0 8.12%
Empire Resorts Incorporated 1,879,800.00 12,343,890.27 5,056,662.00 (7,287,228.27) 0 6.33%
Fleetwood Enterprises Incorporated 6,814,800.00 57,231,728.45 23,511,060.00 (33,720,668.45) 0 10.61%
Gentiva Health Services Incorporated 1,432,100.00 24,270,593.40 31,133,854.00 6,863,260.60 0 5.04%
Global Industries Limited 6,301,400.00 75,979,490.73 100,570,344.00 24,590,853.27 0 5.47%
Intermec Incorporated 3,462,300.00 65,190,054.10 73,123,776.00 7,933,721.90 0 5.68%
Interoil Corporation 2,794,900.00 63,084,443.37 52,795,661.00 (10,288,782.37) 0 9.01%
Intertape Polymer group Incorporated 8,618,150.00 51,055,686.45 20,252,652.50 (30,803,033.95) 0 14.62%
McMoran Exploration Company 3,612,400.00 47,170,196.15 99,052,008.00 51,881,811.85 0 6.50%
Mrv Communications Incorporated 11,120,100.00 30,827,065.41 17,458,557.00 (13,368,508.41) 0 7.08%
Newpark Resources Incorporated 8,328,300.00 49,003,450.19 45,722,367.00 (3,281,083.19) 0 9.32%
Nymagic Incorporated 506,100.00 13,952,325.25 11,513,775.00 (2,438,550.25) 61,544.00 5.81%
Orasure Technologies Incorporated 4,996,800.00 41,211,206.89 32,279,328.00 (8,931,878.89) 0 10.67%
OSI Systems Incorporated 1,451,400.00 27,623,193.82 35,486,730.00 7,863,536.18 0 8.22%
Palm Harbor Homes Incorporated 1,192,800.00 11,612,244.62 10,270,008.00 (1,342,236.62) 0 5.22%
Phi Incorporated 773,500.00 18,579,807.96 29,060,395.00 10,480,587.04 0 6.22%
Power-One Incorporated 5,970,300.00 37,219,709.93 17,851,197.00 (19,368,512.93) 0 6.83%
78 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
Market Unrealized Dividend % of Shares
Security Name Quantity Cost Value Gain/Loss Income Outstanding
- ------------------------------------- ------------ -------------- --------------- --------------- ----------- -----------
Prestige Brands Holdings Incorporated 3,442,100.00 $40,419,038.27 $ 30,910,058.00 $ (9,508,980.27) $ 0 6.88%
Randgold Resources Limited Adr 4,163,300.00 58,593,827.58 189,513,416.00 130,919,588.42 544,116.00 5.46%
RH Donnelley Corporation 3,513,400.00 64,258,402.05 16,829,186.00 (47,429,216.05) 0 5.11%
Skyline Corporation 461,700.00 14,114,932.02 12,705,984.00 (1,408,948.02) 115,776.00 5.50%
US Concrete Incorporated 2,920,600.00 21,159,729.19 9,637,980.00 (11,521,749.19) 0 7.34%
Webco Industries Incorporated 100,364.50 5,859,328.43 13,549,207.50 7,689,879.07 0 14.12%
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 using the interest method.
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, 2008.
Wells Fargo Advantage Small and Mid Cap Stock Funds 79
Notes to Financial Statements
Management has analyzed the Fund's tax positions taken on federal income tax
returns for all open tax years and has concluded that as of April 30, 2008, no
provision for income tax would be required in the Fund's financial statements.
The Fund's federal and state income and federal excise tax returns for tax years
for which the applicable statutes of limitations have not expired (open tax
years: September 30, 2004; October 31, 2004; December 31, 2004; September 30,
2005; October 31, 2005; October 31, 2006; October 31, 2007) are subject to
examination by the Internal Revenue Service and state departments of revenue.
At October 31, 2007, the Funds' prior fiscal year end, net capital loss
carryforwards, which are available to offset future net realized capital gain,
were:
Capital Loss
FUND Expiration Year Carryforwards
- --------------------- --------------- -------------
MID CAP GROWTH FUND 2008 $ 2,795,089
2009 139,021
SMALL CAP GROWTH FUND 2008 7,031,907
2009 4,946,742
SMALL CAP VALUE FUND 2010 27,035,733
2011 1,040,222
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts to protect against a
possible loss resulting from an adverse change in the relationship between
foreign currencies and the U.S. dollar, or between foreign currencies. A forward
contract is an agreement between two counterparties for future delivery or
receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts which have been offset but have not reached
their settlement date are included in unrealized gains and losses.
REPURCHASE AGREEMENTS
The Funds 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 Funds may loan securities in return for securities, irrevocable letters of
credit or cash collateral, which is invested in various short-term fixed income
securities. A Fund may receive compensation for lending securities in the form
of fees or by retaining a portion of interest on the investment securities or
cash received as collateral. A Fund also continues to receive interest or
dividends on the securities loaned. Security loans are secured at all times by
collateral. The collateral is equal to at least 102% of the market value of the
securities loaned plus accrued interest when the transaction is entered into.
The collateral supporting loans of domestic and foreign equity securities and
corporate bonds 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. Cash collateral received by a Fund pursuant to these loans generally
is invested on behalf of the Fund by the securities lending agent in
high-quality short-term debt investments (including money market instruments)
according to written investment guidelines that are approved by the Fund's
adviser and designed to be consistent with the investment objective, principal
investment strategies and policies of the Fund. Gain or loss in the market price
of the securities loaned and securities in which the cash collateral is invested
by a Fund that may occur during the term of the loan are reflected in the value
of the Funds. A risk from securities lending is that the borrower may not
provide additional collateral when required or return the securities when due or
when called for by the Fund. A further risk is the potential loss in the market
price of the securities in which the cash collateral may be invested. Wells
Fargo Bank, N.A., the Funds' custodian, acts as the securities lending agent for
the Funds and receives for its services 25% of the
80 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
revenues earned on the securities lending activities (reduced from 30% effective
September 1, 2007) and incurs all expenses. For the six-month period ended April
30, 2008, Wells Fargo Bank, N.A. waived its share of revenues earned on
securities lending activities. The value of the securities on loan and the value
of the related collateral at April 30, 2008, are shown on the Statements of
Assets and Liabilities.
STRUCTURED INVESTMENT VEHICLES
The Funds may invest in structured debt securities, such as those issued by
Structured Investment Vehicles, or "SIVs". SIVs invest in a diversified pool of
underlying securities, which may include finance company debt and structured
finance assets, residential mortgage-backed securities, commercial
mortgage-backed securities, collateralized loan obligations, collateralized debt
obligations and other asset backed securities. The ability of a SIV to repay
debt depends primarily on the cash collections received from the SIV's
underlying asset portfolio, which may include certain assets such as subprime
mortgages that are subject to heightened risks of credit quality or market value
deterioration under the continuing adverse conditions in the U.S. credit
markets, and on the ability to obtain short-term funding through the issuance of
new debt. Investments in these securities present increased credit and liquidity
risks as there could be losses to a Fund in the event of credit or market value
deterioration in a SIV's underlying portfolio, mismatches in the timing of the
cash flows of the underlying asset interests and the repayment obligations of
maturing securities issued by a SIV, or a SIV's inability to issue new debt.
As of April 30, 2008, the following Funds owned certain of these types of SIVs
which are currently in default and valued at fair value in the Portfolio of
Investments or have been restructured following default, including the
percentage of each Fund's net assets invested in these securities:
Defaulted SIVs
PORTFOLIO ($Market Value) % of Net Assets
- --------- --------------- ---------------
C&B MID CAP VALUE FUND 8,044,823 1.65%
COMMON STOCK FUND 8,409,355 0.81%
MID CAP GROWTH FUND 2,678,173 1.81%
SMALL CAP GROWTH FUND 10,465,377 2.59%
SMALL CAP OPPORTUNITIES FUND 14,900,622 1.95%
SWAP CONTRACTS
The Funds may enter into various hedging transactions, such as interest rate
swaps, currency swaps and other types of swap agreements, including swaps on
securities and indices, 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, 2008, 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 $7,465,391 Notional Amount Market Value 11-30-2008 $2,218,027
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus Market on Customized
Value Depreciation on Stock Index*
Customized Stock Index*
Common Stock Lehman Brothers 8,226,955 Notional Amount Market Value 11-07-2008 (1,028,112)
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus Market on Customized
Value Depreciation on Stock Index**
Customized Stock Index**
Wells Fargo Advantage Small and Mid Cap Stock Funds 81
Notes to Financial Statements
Swap Notional Interest Rate/ Interest Rate/ Maturity Net Unrealized
FUND Counter Party Principal Index Received Index Paid Date Gain/(Loss)
- ---- --------------- ---------- ------------------------- -------------- ---------- --------------
Common Stock Lehman Brothers 10,740,260 Notional Amount Market Value 07-16-2008 (219,355)
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus Market on Customized
Value Depreciation on Stock Index***
Customized Stock Index***
* Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: Rio Tinto Plc, Freeport-McMoRan Copper & Gold
Incorporated and Billiton Limited.
** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: DR Horton, Incorporated, KB Home, Toll
Brothers Incorporated, Pulte Home Incorporated and Ryan Group Incorporated.
*** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: BB&T Corporation, Synovus Financial
Corporation, TCF Financial Corporation, Zions Bancorporation, Wachovia
Corporation and Bank of America Corporation.
WRITTEN OPTIONS
An option is a right to buy or sell a particular security at a specified price
within a limited period of time. The writer of the option, in return for a
premium received from the seller, has the obligation to sell (in the case of a
call option) or buy (in the case of a put option) the underlying security of the
contract. The premium received in cash from writing options is recorded as an
asset with an equal liability that is adjusted to reflect the option's value.
The premium received from writing options which expire is recorded as realized
gains. The premium received from writing options which are exercised or closed
is offset against the proceeds or amount paid on the closing transaction to
determine the realized gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased. Options are valued
based on their quoted daily settlement prices.
Risks could arise from entering into written options transactions from the
potential inability of counterparties to meet the terms of their contracts, the
potential inability to enter into a closing transaction because of an illiquid
secondary market, and from movements in interest or exchange rates or securities
values.
Written options transactions during the six-month period ended April 30, 2008,
were as follows:
COMMON STOCK FUND SMALL CAP VALUE FUND
---------------------------- ----------------------------
CALL OPTIONS WRITTEN Contracts Premiums Received Contracts Premiums Received
- -------------------- --------- ----------------- --------- -----------------
Options at beginning of period (250) $ (99,249) (73,911) $(36,159,546)
Options written (250) (157,998) (143,571) (84,926,139)
Options terminated in closing transactions 0 0 169,306 92,544,414
Options expired 0 0 6,132 1,102,018
Options split 0 0 (14,215) 0
Options exercised 500 257,247 6,525 5,177,100
Options at end of period 0 $ 0 (49,734) $(22,262,153)
SMALL CAP VALUE FUND
---------------------------
PUT OPTIONS WRITTEN Contracts Premiums Received
- ------------------- --------- -----------------
Options at beginning of period (5,100) $(2,079,263)
Options written (9,750) (6,074,371)
Options terminated in closing transactions 14,542 8,080,343
Options expired 0 0
Options split 0 0
Options exercised 108 40,392
Options at end of period (200) $ (32,899)
82 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
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 subadvisers are entitled to be paid a monthly fee at the
following annual rates:
Advisory Subadvisory
Fees (% of Fees (% of
Average Daily Average Daily Average Daily Average Daily
FUND Net Assets Net Assets) Subadviser Net Assets Net 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 First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
MID CAP GROWTH FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
SMALL CAP GROWTH FUND* First $500 million 0.850 Wells Capital First $100 million 0.550
Next $500 million 0.825 Management Next $100 million 0.500
Next $1 billion 0.800 Incorporated Over $200 million 0.400
Next $1 billion 0.775
Over $3 billion 0.750
SMALL CAP OPPORTUNITIES FUND* First $500 million 0.850 Schroder Investment First $275 million 0.500
Next $500 million 0.825 Management North Over $275 million 0.450
Next $1 billion 0.800 America Incorporated
Next $1 billion 0.775
Over $3 billion 0.750
SMALL CAP VALUE FUND* First $500 million 0.850 Wells Capital First $100 million 0.550
Next $500 million 0.825 Management Next $100 million 0.500
Next $1 billion 0.800 Incorporated Over $200 million 0.400
Next $1 billion 0.775
Over $3 billion 0.750
* Effective March 1, 2008. Prior to March 1, 2008, Funds Management was
entitled to receive an annual fee at the following rates:
Advisory Fees
Average Daily (% of Average
FUND Net Assets Daily Net Assets)
- ---- ------------------ -----------------
SMALL CAP GROWTH FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
Wells Fargo Advantage Small and Mid Cap Stock Funds 83
Notes to Financial Statements
Advisory Fees
Average Daily (% of Average
FUND Net Assets Daily Net Assets)
- ---- ------------------ -----------------
SMALL CAP OPPORTUNITIES FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
SMALL CAP VALUE FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
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
Class A, Class B, Class C, and Class D All asset levels 0.28
Class Z All asset levels 0.40
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
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
- ----------- ----------------
Class A, Class B, Class C, Class D, Class Z and Administrator Class 0.25
84 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
For the six-month period ended April 30, 2008, 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 $ 47,276 $ 13,364 $ 13,444 $515,633 NA $ 99,057
COMMON STOCK FUND 70,182 32,964 19,204 NA $1,165,464 NA
MID CAP GROWTH FUND 135,111 6,621 3,091 NA 46,046 2
SMALL CAP GROWTH FUND 217,443 13,307 9,678 NA 40,572 109,391
SMALL CAP OPPORTUNITIES FUND NA NA NA NA 880,423 NA
SMALL CAP VALUE FUND 774,792 127,565 154,177 NA 2,995,480 NA
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 period ended April 30, 2008, 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.
Each Fund also bears its share of other fees and expenses incurred in the normal
course of business, including but not limited to: professional fees,
registration fees, shareholder reporting costs, and Trustees fees and expenses.
The Trust compensates its Trustees for their services, plus travel and other
expenses incurred in attending Board meetings.
WAIVED FEES AND REIMBURSED EXPENSES
Funds Management has contractually committed through February 28, 2009 to waive
fees and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Funds. 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,
2008, were as follows:
Net Operating Expense Ratios
-------------------------------------------------------------------------
Administrator Institutional
FUND Class A Class B Class C Class D Class Z Class Class
- ---- ------- ------- ------- ------- ------- ------------- -------------
C&B MIDCAP GROWTH FUND 1.40% 2.15% 2.15% 1.25% NA 1.15% 0.90%
COMMON STOCK FUND 1.31% 2.06% 2.06% NA 1.29% NA NA
MID CAP GROWTH FUND 1.40% 2.15% 2.15% NA 1.49%(1) 1.15% 0.90%
SMALL CAP GROWTH FUND 1.40% 2.15% 2.15% NA 1.49%(1) 1.20% 0.90%
SMALL CAP OPPORTUNITIES FUND NA NA NA NA NA 1.20% NA
SMALL CAP VALUE FUND 1.44% 2.19% 2.19% NA 1.36% NA 0.95%
(1) Effective February 29, 2008, the net operating expense ratio fo the Mid Cap
Growth Fund Class Z and Small Cap Growth Fund Class Z decreased from 1.57%
to 1.49%. The weighted blended net operating expense ratio for the period
ended April 30, 2008, for the Mid Cap Growth Fund Class Z is 1.54% and for
the Small Cap Growth Fund Class Z is 1.55%.
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, 2008, were as
follows:
\
Wells Fargo Advantage Small and Mid Cap Stock Funds 85
Notes to Financial Statements
FUND Purchases at Cost Sales Proceeds
- ---------------------------- ----------------- --------------
C&B MIDCAP GROWTH FUND $ 91,830,504 $395,216,263
COMMON STOCK FUND 410,320,775 430,300,705
MID CAP GROWTH FUND 49,688,420 71,431,235
SMALL CAP GROWTH FUND 190,253,007 164,934,468
SMALL CAP OPPORTUNITIES FUND 247,926,187 290,669,367
SMALL CAP VALUE FUND 388,896,756 655,433,864
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,
2008, 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 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 May 31, 2008, 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.
In March 2008, the FASB issued Statement of Financial Accounting Standards 161
("FAS 161"), "Disclosures about Derivative Instruments and Hedging Activities-an
amendment of FASB Statement No. 133." FAS 161 requires additional discussion
about the reporting entity's derivative instruments and hedging activities, by
providing for qualitative disclosures about the objectives and strategies for
using derivatives, quantitative data about the fair value of and gains and
losses on derivative contracts, and details of credit-risk-related contingent
features in their hedged positions. FAS 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those years. As of March 31, 2008, Management is continuing to
evaluate the impact, if any, that adoption of FAS 161 may have on the financial
statements.
86 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
8. SUBSEQUENT EVENT
At its November 7, 2007 meeting, the Board unanimously approved modifying
certain share class names and features. Class D shares and Class Z shares will
each be renamed Investor Class shares and will each be modified to assume the
features and attributes associated with Investor Class shares, including their
exchange privileges. These share class modifications are expected to take place
by the end of the third quarter of 2008. Additional information was provided to
shareholders approximately 60 days in advance of the modifications.
Wells Fargo Advantage Small and Mid Cap Stock Funds 87
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 Portfolio, except money market funds,
are publicly available on the Funds' Web site
(WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or more delayed basis
and for money market funds, on a monthly, seven-day delayed basis. In addition,
top ten holdings information for each Portfolio is publicly available on the
Funds'Web site on a monthly, seven-day or more delayed basis. Each Portfolio
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(1) of each Portfolio. Each of the Trustees
listed below acts in identical capacities for each of the 146 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
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- -------------------------- -------------------------------------------------------- -------------------
Thomas S. Goho Trustee, since 1987 Co-Director for the Calloway School of Stephens None
65 University of Wake Forest University. Prior thereto, the
Thomas Goho Chair of Finance of Wake Forest University,
Calloway School of Business and Accountancy, from
2006-2007 and Associate Professor of Finance from
1999-2005.
Peter G. Gordon Trustee, since 1998; Chairman, CEO and Co-Founder of Crystal Geyser Water None
65 Chairman, since 2005 (Lead Company and President of Crystal Geyser Roxane Water
Trustee since 2001) Company.
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, Wharton None
55 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 President and CEO of Southern Minnesota Initiative None
56 Foundation, a non-profit organization since 2007 and
Senior Fellow at the Humphrey Institute Policy Forum at
the University of Minnesota since 1995.
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke & Daniels. None
67
88 Wells Fargo Advantage Small and Mid Cap Stock Funds
Other Information
INTERESTED TRUSTEE(3)
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- -------------------------- -------------------------------------------------------- -------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate Developer. Prior thereto, None
63 Chairman of Whitepoint Capital, LLC until 2004.
OFFICERS
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- -------------------------- -------------------------------------------------------- -------------------
Karla M. Rabusch President, since 2003 Executive Vice President of Wells Fargo Bank, N.A. and None
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 Secretary of Wells Fargo Funds None
47 Chief Legal Counsel, Management, LLC since 2001. Vice President and Managing
since 2003 Senior Counsel of Wells Fargo Bank, N.A. since 1996.
Stephen W. Leonhardt Treasurer, since 2007 Vice President and Manager of Fund Accounting, Reporting None
48 and Tax for Wells Fargo Funds Management, LLC since
2007. Director of Fund Administration and SEC Reporting
for TIAA-CREF from 2005 to 2007. Chief Operating Officer
for UMB Fund Services, Inc. from 2004 to 2005.
Controller for Sungard Transaction Networks from 2002 to
2004.
Debra Ann Early Chief Compliance Chief Compliance Officer of Wells Fargo Funds None
43 Officer, since 2007 Management, LLC since 2007. Chief Compliance Officer of
Parnassus Investments from 2005 to 2007. Chief Financial
Officer of Parnassus Investments from 2004 to 2007 and
Senior Audit Manager of PricewaterhouseCoopers LLP from
1998 to 2004.
- ----------
(1) The Statement of Additional Information includes additional information
about the 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.
(2) Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
(3) As of April 30, 2008, one of the six 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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 89
Other Information
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 28, 2008, 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 28, 2008, meeting, the Trustees conferred
extensively among themselves and with representatives of Funds Management about
these matters. The Board also met regularly throughout the year and received
information that was useful to them in considering the continuation of the
Advisory Agreements. 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. The Board
received and considered, among other things, information about the background
and experience of senior management of Funds Management and the qualifications,
backgrounds, tenures 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 financial condition, resources, reputation and other
attributes, to attract and retain 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, and the appointment of a new Chief Compliance Officer for the
Funds. 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 and the Sub-Advisers
about various topics, including Funds Management's oversight of service
providers. 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, 2007. The Board also considered these results in
comparison to the median performance of a universe of relevant fund that was
determined by Lipper Inc. ("Lipper") to be similar to the Funds (the
"Universe"), as well as to each Fund's
90 Wells Fargo Advantage Small and Mid Cap Stock Funds
Other Information
benchmark index and to other comparative data. Lipper is an independent provider
of investment company data. The Board was provided with a description of the
methodology used by Lipper to select the mutual funds in the Universe.
The Board noted that the performance of each Fund, except for 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 Board noted that performance of the C&B
Mid Cap Value Fund was lower than the median performance of its Universe for all
time periods and required further review. As part of its further review, the
Board received an analysis of, and discussed factors contributing to, the
underperformance of the C&B Mid Cap Value Fund. 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 contractual
advisory fees, and net operating expense ratio and their various components,
including actual management fees, transfer agent, custodian and other
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 respective median fees of narrower groups of
funds that were determined by Lipper to be the most similar to the Funds (the
"Peer Group") and to other comparative data. The Board was provided with a
description of the methodology used by Lipper to select the mutual funds in the
Peer Group. 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 noted Funds Management's
recommendation to reduce the net operating expense ratios for certain share
classes of the Mid Cap Growth 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 and other 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, 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 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 approved Funds
Management's recommendation to reduce administration fees for a share class of
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 also considered related information provided by
Funds Management in a separate presentation on financial matters made at the
February 2008 board meeting. 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 separate profitability information with respect to
Wells Capital Management, as its profitability from its relationship with the
Common Stock Fund, Mid Cap Growth Fund, Small Cap Growth Fund and
Wells Fargo Advantage Small and Mid Cap Stock Funds 91
Other Information
Small Cap Value Fund was not a material factor in determining whether to renew
the agreement. The Board did not consider separate 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 profitability from their
relationships with the C&B Mid Cap Value Fund and Small Cap Opportunities Fund
was 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
separate presentations on advisory fee breakpoints and economies of scale made
at the February 2008 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 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 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 channels.
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 at each of its
quarterly meetings, which include, among other things, a us 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.
92 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
This page is intentionally left blank.
This page is intentionally left blank.
(WELLS FARGO LOGO)
ADVANTAGE FUNDS
MORE INFORMATION ABOUT WELLS FARGO ADVANTAGE FUNDS 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
Individua 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 FINRAI/SIPC, an affiliate of Wells Fargo &
Company.
NOT FDIC INSURED - NO BANK GURANTEE - MAY LOSE VALUE
(C) 2008 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
110491 06-07
SMCFLD/SAR122 04-08
(WELLS FARGO LOGO)
ADVANTAGE FUNDS
(GRAPHIC)
Semi-Annual Report
April 30, 2008
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
WANT TO RECEIVE YOUR ANNUAL AND SEMI-ANNUAL REPORTS FASTER?
Sign up for e-delivery at www.wellsfargo.com/advantagefunds, Keyword: eDocs.
Contents
LETTER TO SHAREHOLDERS................. 2
PERFORMANCE HIGHLIGHTS
Discovery Fund......................... 4
Enterprise Fund........................ 6
Mid Cap Disciplined Fund............... 8
Opportunity Fund....................... 10
Small Cap Disciplined Fund............. 12
Small/Mid Cap Value Fund............... 14
FUND EXPENSES.......................... 16
PORTFOLIO OF INVESTMENTS
Discovery Fund......................... 19
Enterprise Fund........................ 24
Mid Cap Disciplined Fund............... 29
Opportunity Fund....................... 34
Small Cap Disciplined Fund............. 40
Small/Mid Cap Value Fund............... 46
FINANCIAL STATEMENTS
Statements of Assets and Liabilities... 50
Statements of Operations............... 52
Statements of Changes in Net Assets.... 54
Financial Highlights................... 62
NOTES TO FINANCIAL STATEMENTS.......... 68
OTHER INFORMATION...................... 78
LIST OF ABBREVIATIONS.................. 83
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(GRAPHIC)
WELLS FARGO ADVANTAGE FUNDS(R)
WELLS FARGO INVESTMENT HISTORY
1971 INTRODUCED ONE OF THE FIRST INSTITUTIONAL INDEX FUNDS.
1978 ONE OF THE FIRST FIRMS TO APPLY ASSET ALLOCATION THEORY TO INVESTMENT
PORTFOLIO MANAGEMENT.
1985 ONE OF THE FIRST FIRMS TO CREATE A THREE-WAY ASSET ALLOCATION FUND THAT
"TILTS" INVESTMENTS TOWARD PORTIONS OF THE MARKET THAT OUR PROPRIETARY MODELS
INDICATE WILL PERFORM BETTER.
1994 INTRODUCED TARGET DATE FUNDS THAT AUTOMATICALLY REALLOCATE THE ASSET MIX
OVER SPECIFIC TIME HORIZONS.
1997 WELLS FARGO LAUNCHED THE WEALTHBUILDER PORTFOLIOS, A UNIQUE "FUND OF FUNDS"
THAT USES FLEXIBLE ASSET ALLOCATION STRATEGIES TO SHIFT ASSETS.
1999 REORGANIZED THE NORWEST ADVANTAGE FUNDS(R) AND STAGECOACH FUNDS(R) INTO THE
WELLS FARGO FUNDS(R).
2003 EXPANDED FIXED-INCOME, SMALL CAP, AND EMERGING MARKETS LINEUP FROM
MONTGOMERY ASSET MANAGEMENT, LLC.
2004 ADDED ADDITIONAL LARGE CAP AND MID CAP FUNDS TO THE LINEUP BY ADOPTING THE
COOKE & BIELER VALUE FUNDS.
2005 WELLS FARGO FUNDS MERGED WITH STRONG FUNDS TO BECOME WELLS FARGO ADVANTAGE
FUNDS, FORMING A FUND FAMILY OF OVER 120 FUNDS AND PLACING IT AMONG THE TOP 20
MUTUAL FUND FAMILIES IN THE UNITED STATES.
2006 ENHANCED AND RENAMED THE WELLS FARGO ADVANTAGE OUTLOOK FUNDS(SM) TO THE
WELLS FARGO ADVANTAGE DOW JONES TARGET DATE FUNDS(SM), WHICH SEEK TO REPLICATE
RETURNS OF THE APPROPRIATE DOW JONES TARGET DATE INDEXES, THE FIRST LIFE CYCLE
INDEXES IN THE INVESTMENT INDUSTRY.
Integrity. Expertise. Solutions.
GUIDED BY A DISTINGUISHED HERITAGE. Since 1852 Wells Fargo has distinguished
itself by safely delivering people and their valuables to distant destinations.
To meet the needs of a vibrant, expanding nation, the company successfully
forged partnerships with local specialists who knew the terrain.
Although much has changed since then, WELLS FARGO ADVANTAGE FUNDS continues to
put the same time and effort into selecting independent portfolio management
teams who oversee our Funds. It's our way of maintaining this early commitment
to integrity and expertise and to providing solutions that help you reach your
destination.
INDEPENDENT THINKING. With a primary focus on delivering long-term performance
and risk management, our approach offers investors access to the strategic
thinking of independent investment teams from 15 different management firms.
While each of our teams concentrates on a specific strategy, collectively they
provide in-depth knowledge and insight across distinct investment styles.
TIME-TESTED APPROACH. Our teams are chosen for their expertise in particular
investment styles and for their consistent, repeatable processes. All remain
independent and free to concentrate solely on managing money and producing
results. Our strict adherence to this approach provides a consistent focus on
long-term results and allows investors to tap into the expertise of leading
institutional investment managers to create fully diversified portfolios.
SOLUTIONS FOR EVERY STAGE. WELLS FARGO ADVANTAGE FUNDS provides investors with
strategic investment solutions that help navigate the complex and ever-changing
investment landscape. Our diverse family of mutual funds includes more than 120
Funds that cover a broad spectrum of investment styles and asset classes, and
each Fund has its own disciplined approach to investing.
NOT PART OF THE SEMI-ANNUAL REPORT.
WELLS FARGO ADVANTAGE FUNDS OFFERS MORE THAN 120 MUTUAL FUNDS ACROSS A WIDE
RANGE OF ASSET CLASSES, REPRESENTING OVER $156 BILLION IN ASSETS UNDER
MANAGEMENT, AS OF APRIL 30, 2008.
EQUITY FUNDS
Asia Pacific Fund Equity Value Fund Opportunity Fund
C&B Large Cap Value Fund Growth and Income Fund Overseas Fund
C&B Mid Cap Value Fund Growth Fund Small Cap Disciplined Fund
Capital Growth Fund Growth Equity Fund Small Cap Growth Fund
Common Stock Fund Index Fund Small Cap Opportunities Fund
Discovery Fund International Core Fund Small Cap Value Fund
Diversified Equity Fund International Equity Fund Small Company Growth Fund
Diversified Small Cap Fund International Value Fund Small Company Value Fund
Emerging Growth Fund Large Cap Appreciation Fund Small/Mid Cap Value Fund
Emerging Markets Equity Fund Large Cap Growth Fund Specialized Financial Services Fund
Endeavor Large Cap Fund Large Company Core Fund Specialized Technology Fund
Endeavor Select Fund Large Company Growth Fund Strategic Small Cap Value Fund
Enterprise Fund Large Company Value Fund U.S. Value Fund
Equity Income Fund Mid Cap Disciplined Fund Value Fund
Equity Index Fund Mid Cap Growth Fund
BOND FUNDS
California Limited-Term Tax-Free Fund Inflation-Protected Bond Fund Short-Term High Yield Bond Fund
California Tax-Free Fund Intermediate Government Income Fund(1) Short-Term Municipal Bond Fund
Colorado Tax-Free Fund Intermediate Tax-Free Fund Stable Income Fund
Corporate Bond Fund Minnesota Tax-Free Fund Strategic Income Fund
Diversified Bond Fund Municipal Bond Fund Total Return Bond Fund
Government Securities Fund(1) National Limited-Term Tax-Free Fund Ultra Short-Term Income Fund
High Income Fund National Tax-Free Fund Ultra Short-Term Municipal Income Fund
High Yield Bond Fund Short Duration Government Bond Fund(1) Ultra-Short Duration Bond Fund
Income Plus Fund Short-Term Bond Fund Wisconsin Tax-Free Fund
ASSET ALLOCATION FUNDS
Aggressive Allocation Fund WealthBuilder Conservative Allocation Portfolio Target 2020 Fund(2)
Asset Allocation Fund WealthBuilder Equity Portfolio Target 2025 Fund(2)
Balanced Fund WealthBuilder Growth Allocation Portfolio Target 2030 Fund(2)
Conservative Allocation Fund WealthBuilder Growth Balanced Portfolio Target 2035 Fund(2)
Growth Balanced Fund WealthBuilder Moderate Balanced Portfolio Target 2040 Fund(2)
Moderate Balanced Fund WealthBuilder Tactical Equity Portfolio Target 2045 Fund(2)
Life Stage-Aggressive Portfolio Target Today Fund(2) Target 2050 Fund(2)
Life Stage-Conservative Portfolio Target 2010 Fund(2)
Life Stage-Moderate Portfolio Target 2015 Fund(2)
MONEY MARKET FUNDS
100% Treasury Money Market Fund(1) Heritage Money Market Fund National Tax-Free Money Market Fund
California Tax-Free Money Market Fund Minnesota Money Market Fund National Tax-Free Money Market Trust
California Tax-Free Money Market Trust Money Market Fund Overland Express Sweep Fund
Cash Investment Money Market Fund Money Market Trust Prime Investment Money Market Fund
Government Money Market Fund(1) Municipal Money Market Fund Treasury Plus Money Market Fund(1)
VARIABLE TRUST FUNDS(3)
VT Asset Allocation Fund VT International Core Fund VT Opportunity Fund
VT C&B Large Cap Value Fund VT Large Company Core Fund VT Small Cap Growth Fund
VT Discovery Fund VT Large Company Growth Fund VT Small/Mid Cap Value Fund
VT Equity Income Fund VT Money Market Fund VT Total Return Bond Fund
AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE WELLS
FARGO ADVANTAGE MONEY MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT
AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN A MONEY MARKET
FUND.
(1) The U.S. Government guarantee applies to certain of the underlying
securities and NOT to shares of the Fund.
(2) The full name of this Fund series is the WELLS FARGO ADVANTAGE DOW JONES
TARGET DATE FUNDS(SM).
(3) The Variable Trust Funds are generally available only through insurance
company variable contracts.
NOT PART OF THE SEMI-ANNUAL REPORT.
2 Wells Fargo Advantage Small and Mid Cap Stock Funds
Letter to Shareholders
(PHOTO OF KARLA M. RABUCH)
KARLA M. RABUCH,
President
WELL FARGO ADVENTAGE FUNDS
FALLING PRICES OF NEW AND EXISTING HOMES ESPECIALLY AFFECTED SUBPRIME BORROWERS
WHO FALTERED WHEN EASY ACCESS TO CREDIT ALL BUT DISAPPEARED FOR THEM AND
MARKET-VALUE EQUITY ON THEIR HOMES DECLINED.
Dear Valued Shareholder,
We're pleased to offer you this semi-annual report for the Wells Fargo Advantage
Small and Mid Cap Stock Funds that covers the six-month period that ended April
30, 2008. During the period, the economy struggled to absorb slower growth, high
energy prices, a continuing correction in the housing market, and tighter
lending practices that presented financial challenges to businesses and
consumers.
Falling prices of new and existing homes especially affected subprime borrowers
who faltered when easy access to credit all but disappeared for them and
market-value equity on their homes declined. The price correction in the market
value of homes prevented many struggling borrowers from paying off their full
mortgage balances by selling their homes. Housing market woes also had a ripple
effect as financial markets began to assess the full impact of the subprime
loans that had been packaged and sold both in the United States and abroad. The
rapid collapse of investment bank Bear Stearns, due to high write-offs in its
mortgage-related assets, highlighted some of the more significant risks within
the market.
THE FED RESPONDED IN MANY WAYS.
First, the Fed lowered the federal funds rate (the rate at which member banks
borrow money from each other) by 250 basis points (100 basis points equals
1.00%), with the latest rate cut during the period occurring on April 30.
Second, it lowered the discount rate (the rate at which banks borrow money
directly from the Fed) by 275 basis points. And third, it agreed to make the
discount window available to nonbank dealers and to lend to banks for
longer-than-normal periods of time to help ease some of the constraints on
liquidity. In addition, the Fed launched several other new programs to provide
liquidity to financial institutions.
INVESTORS SOUGHT RELATIVE SAFETY IN MONEY MARKET FUNDS AND IN THE U.S. TREASURY
MARKET.
During the six-month period, the Lehman Brothers U.S. Treasury Index(1) returned
5.87%, compared to 4.08% for the broad bond market, as measured by the Lehman
Brothers U.S. Aggregate Index(2). Corporate and high-yield bonds trailed as
investors worried about the effect of a slowing economy on potential future
default rates. In the international credit markets, Europe and Britain
experienced some of the same concerns over liquidity that were felt in the U.S.
credit markets, which resulted in tighter lending practices overseas.
- ----------
(1) Lehman Brothers U.S. Treasury Index includes public obligations of the U.S.
Treasury. It includes only notes and bonds with a minimum outstanding
principal amount of $50 million and a minimum maturity of one year. You
cannot invest directly in an index.
(2) The Lehman Brothers U.S. Aggregate Index includes bonds from the Treasury,
government-related, corporate, agency, mortgage-backed securities, and
asset-backed securities sectors. You cannot invest directly in an index.
Wells Fargo Advantage Small and Mid Cap Stock Funds 3
Letter to Shareholders
ENERGY STOCKS WERE ONE OF THE FEW BRIGHT SPOTS IN THE MARKET, AS OIL PRICES
CONTINUED TO RISE.
THE STOCK MARKET STRUGGLED IN MOST AREAS.
The S&P 500 Index declined 9.64% for the six-month period. Within the S&P 500
Index, value stocks underperformed growth stocks, largely because of continued
weakness in financials as the credit fallout from the housing crisis continued
to work its way through the system. The S&P Financial Index(3) declined 20.03%
for the period. Small cap stocks underperformed large caps, in part because
investors tend to prefer better-established companies during uncertain periods.
Both small caps and large caps underperformed mid cap stocks, which pair some of
the higher growth rates of small caps with some of the financial stability of
large caps. Energy stocks were one of the few bright spots in the market, as oil
prices continued to rise.
THE CONTINUED UNCERTAINTY SURROUNDING THE HOUSING MARKET, LIQUIDITY, AND
INFLATION SUPPORTS OUR BELIEF THAT SUCCESSFUL INVESTING INCLUDES A BALANCED
APPROACH OF OWNING A DIVERSIFIED PORTFOLIO WHILE KEEPING A LONG-TERM
PERSPECTIVE.
PLANNING AHEAD.
The continued uncertainty surrounding the housing market, liquidity, and
inflation supports our belief that successful investing includes a balanced
approach of owning a diversified portfolio while keeping a long-term
perspective. While diversification may not prevent losses in a downturn, it may
help to reduce them and provide you with one way of managing risk. Our diverse
family of mutual funds may also help. We offer more than 120 Funds that cover a
broad spectrum of investment styles and asset classes. 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 investment teams 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
- ----------
(3) 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.
4 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE DISCOVERY FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE DISCOVERY FUND (the Fund) seeks long-term capital
appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
James M. Leach, CFA
Thomas J. Pence, CFA
FUND INCEPTION
December 31, 1987
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Telecommunication Services (8%)
Consumer Discretionary (12%)
Consumer Staples (1%)
Energy (13%)
Financials (4%)
Health Care (20%)
Industrials (14%)
Information Technology (23%)
Materials (5%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Equinix Incorporated 3.68%
NII Holdings Incorporated 3.09%
SBA Communications Corporation 2.95%
Activision Incorporated 2.22%
Newfield Exploration Company 2.20%
Alpha Natural Resources Incorporated 2.12%
Solera Holdings Incorporated 2.06%
Foster Wheeler Limited 1.98%
Charles River Laboratories International Incorporated 1.79%
Incorporated
NetLogic Microsystems Incorporated 1.77%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 5
Performance Highlights
WELLS FARGO ADVANTAGE DISCOVERY FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
DISCOVERY FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFDAX) (17.40) (2.27) 14.31 7.09 (12.37) 3.70 15.67 7.73 1.41% 1.33%
Class C (WDSCX) (13.84) 1.85 14.86 7.02 (12.84) 2.85 14.86 7.02 2.16% 2.08%
Administrator Class (WFDDX) (12.29) 3.73 15.81 7.80 1.23% 1.15%
Institutional Class (WFDSX) (12.21) 3.99 15.89 7.84 0.96% 0.95%
Investor Class (STDIX) (12.40) 3.48 15.62 7.71 1.58% 1.38%
BENCHMARK
Russell 2500 Growth Index(6) (11.37) (3.56) 14.88 4.79
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMACE
SHOWN WITHOUT SALES CHARGE 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 C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND 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.
- ----------
(3) Class A and Class C shares incepted on July 31, 2007. Performance shown for
the Class A and Class C shares prior to the inception of Class A and Class
C shares reflects the performance of the Investor Class shares, which
incepted on December 31, 1987, and includes expenses that are not
applicable to and are higher than those of the Class A shares and lower
than those of the Class C shares. Performance shown prior to April 11,
2005, for the Investor Class shares reflects the performance of the
Investor Class shares of the Strong Discovery Fund, the predecessor fund.
The Investor Class share annual returns are substantially similar to what
the Class A and Class C shares annual returns would be because the Investor
Class shares, Class A shares, and Class C shares are invested in the same
portfolio and their shares differ only to the extent that they do not have
the same expenses. Administrator Class shares incepted on April 11, 2005.
Performance shown for the Administrator Class shares 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.
Institutional Class shares incepted August 31, 2006. Performance shown for
the Institutional Class shares 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 April 11,
2005 for the Institutional Class shares reflects the performance of the
Investor Class shares, and includes expenses that are not applicable to,
and higher than those of the Institutional Class shares. Investor Class
shares incepted December 31, 1987. Performance shown for the Investor Class
shares prior to April 11, 2005 for the Investor Class shares reflects the
performance of the Investor Class shares of the predecessor fund.
(4) For the Administrator class and Investor class, the gross expense ratio as
stated in the March 1, 2008, prospectus. For the Institutional class
shares, this is the first fiscal year. This gross expense ratio as stated
in the March 1, 2008 prospectus is based on estimates for the current
fiscal year.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell 2500 Growth Index measures the performance of those Russell
2500 companies with higher price-to-book ratios and higher forecasted
growth values. You cannot invest directly in an Index.
6 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE ENTERPRISE FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE ENTERPRISE FUND (the Fund) seeks long-term capital
appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
James M. Leach, CFA
Thomas J. Pence, CFA
FUND INCEPTION
September 30, 1998
(PIE CHART)
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
Consumer Discretionary (7%)
Consumer Staples (3%)
Energy (15%)
Financials (3%)
Health Care (20%)
Industrials (20%)
Information Technology (20%)
Materials (5%)
Telecommunication Services (7%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Equinix Incorporated 3.62%
NII Holdings Incorporated 2.89%
BioMarin Pharmaceutical Incorporated 2.50%
BE Aerospace Incorporated 2.41%
Invitrogen Corporation 2.14%
Alpha Natural Resources Incorporated 2.12%
SBA Communications Corporation Class A 2.11%
Airgas Incorporated 2.05%
Noble Corporation 2.04%
Foster Wheeler Limited 1.95%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 7
Performance Highlights
WELLS FARGO ADVANTAGE ENTERPRISE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Excluding Sales Charge
Including Sales Charge ---------------------------------- Expense Ratio
--------------------------------------- Life of ----------------
ENTERPRISE FUND 6 Months* 1 Year 5 Year Life of Fund 6 Months* 1 Year 5 Year Fund Gross(4) Net(5)
- --------------------------------- --------- ------ ------ ------------ --------- ------ ------ ------- -------- ------
Class C (WENCX) (11.45) 2.61 14.25 13.54 (10.45) 3.61 14.25 13.54 2.17% 2.15%
Administrator Class (SEPKX) (10.02) 4.66 15.36 14.50 1.25% 1.15%
Advisor Class (SENAX) (10.17) 4.35 15.01 14.19 1.43% 1.40%
Institutional Class (WFEIX) (9.90) 4.91 15.63 14.57 0.98% 0.90%
Investor Class (SENTX) (10.21) 4.20 14.77 14.13 1.60% 1.49%
BENCHMARK
Russell Midcap Growth Index(6) (8.44) (1.93) 15.29 8.21
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- -WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS C SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%.
PERFORMANCE INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE
CORRESPONDING TIME PERIOD. ADMINISTRATOR CLASS, 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.
- ----------
(3) Class C shares incepted on March 31, 2008. Performance shown for the Class
C shares reflects the performance of the Investor Class shares, which
incepted on September 30, 1998, and includes expenses that are not
applicable to and are lower than Class C shares. Investor Class annual
returns are substantially similar to what Class C shares would be because
the shares are invested in the same portfolio of securities and differ only
to the extent that the classes do not have the same expenses. Institutional
Class shares incepted on June 30, 2003. Administrator Class shares incepted
on August 30, 2002. Advisor Class shares incepted February 24, 2000.
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.
(4) For Administrator, Advisor, Institutional, and Investor classes, reflects
the gross expense ratio as stated in the March 1, 2008, prospectus. For
Class C shares, this is the first fiscal year. This gross expense ratio as
stated in the April 1, 2008, prospectus is based on estimates for the
current fiscal year.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell Midcap Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000(R) Growth
Index. You cannot invest directly in an Index.
8 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
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Robert J. Costomiris, CFA
FUND INCEPTION
December 31, 1998
(PIE CHART)
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
Consumer Discretionary (7%)
Consumer Staples (22%)
Energy (7%)
Financials (12%)
Health Care (10%)
Industrials (15%)
Information Technology (20%)
Materials (3%)
Utilities (4%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Waste Management Incorporated 6.02%
Tootsie Roll Industries Incorporated 4.91%
The Hersey Company 4.47%
Wm. Wrigley Jr. Company 4.34%
Molex Incorporated Class A 4.27%
NiSource Incorporated 3.83%
Electronic Arts Incorporated 3.82%
The Progressive Corporation 3.72%
US Bancorp 3.65%
HLTH Corporation 3.60%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 9
Performance Highlights
WELLS FARGO ADVANTAGE MID CAP DISCIPLINED FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
--------------------------------------- --------------------------------------- ----------------
MID CAP DISCIPLINED FUND 6 Months* 1 Year 5 Year Life of Fund 6 Months* 1 Year 5 Year Life of Fund Gross(4) Net(5)
- --------------------------- --------- ------ ------ ------------ --------- ------ ------ ------------ -------- ------
Class A (WFPAX) (11.00) (13.67) 14.05 13.44 (5.57) (8.42) 15.41 14.16 1.37% 1.25%
Class C (WFPCX) (6.93) (10.09) 14.66 13.53 (5.93) (9.09) 14.66 13.53 2.12% 2.00%
Administrator Class (WFMDX) (5.52) (8.29) 15.51 14.22 1.19% 1.15%
Institutional Class (WFMIX) (5.38) (8.03) 15.70 14.32 0.92% 0.90%
Investor Class (SMCDX) (5.54) (8.43) 15.40 14.16 1.54% 1.31%
BENCHMARK
Russell Midcap Value Index(6) (9.20) (11.65) 16.44 10.00
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND 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.
- ----------
(3) Class A and Class C shares incepted on July 31, 2007. Performance shown for
Class A and Class C shares prior to the inception of the Class A and Class
C shares reflects the performance of the Investor Class shares, and
includes expenses that are not applicable to, and higher than those of
Class A shares and lower than those of the Class C shares. The Investor
Class shares annual returns are substantially similar to what the Class A
shares and Class C shares would be because the Investor Class shares, Class
A shares, and Class C shares are invested in the same portfolio and their
returns differ only to the extent that the classes do not have the same
expenses. Institutional and Administrator Class shares incepted on April
11, 2005. Performance shown for the Institutional and Administrator Class
shares prior to the inception of the Institutional Class 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. Investor Class
shares incepted on December 31, 1998. Performance shown prior to April 11,
2005 for the Investor Class shares reflects the performance of the Investor
Class shares of the predecessor fund.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell Midcap Value Index measures the performance of those Russell
Midcap companies with lower price-to-book ratios and lower forecasted
growth values. The stocks are also members of the Russell 1000 Value Index.
You cannot invest directly in an Index.
10 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE OPPORTUNITY FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE OPPORTUNITY FUND (the Fund) seeks long-term capital
appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Ann M. Miletti
FUND INCEPTION
December 31, 1985
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Materials (7%)
information Technology (20%)
Consumer Discretionary (21%)
Consumer Staples (4%)
industrials (11%)
Health Care (14%)
Financials (10%)
Energy (13%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Weatherford International Limited 3.80%
Transocean Incorporated 3.25%
Apache Corporation 2.61%
Praxair Incorporated 2.22%
Waters Corporation 1.82%
Accenture Limited Class A 1.80%
Red Hat Incorporated 1.77%
ON Semiconductor Corporation 1.73%
Interpublic Group of Companies Incorporated 1.70%
ACE Limited 1.70%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 11
Performance Highlights
WELLS FARGO ADVANTAGE OPPORTUNITY FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
OPPORTUNITY FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- --------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class C (WFOPX) (8.49) (5.08) 13.14 12.98 (7.49) (4.08) 13.14 12.98 2.08% 2.00%
Administrator Class (WOFDX) (7.03) (3.10) 14.18 13.97 1.20% 1.04%
Advisor Class (SOPVX) (7.13) (3.35) 13.85 13.62 1.38% 1.29%
Investor Class (SOPFX) (7.18) (3.42) 13.89 13.89 1.58% 1.38%
BENCHMARK
Russell Midcap Index(6) (8.77) (6.34) 16.20 8.33
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS C SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%.
PERFORMANCE INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE
CORRESPONDING TIME PERIOD. ADMINISTRATOR CLASS, 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.
- ----------
(3) Class C shares incepted on March 31, 2008. Performance shown for the Class
C shares reflects the performance of the Investor Class shares, which
incepted on December 31, 1985, and includes expenses that are not
applicable to and are lower than those of the Class C shares. Investor
Class annual returns are substantially similar to what the Class C shares
would be because the shares are invested in the same portfolio of
securities and differ only to the extent that the classes do not have the
same expenses. Administrator Class shares incepted on August 20, 2006.
Advisor Class shares incepted on February 24, 2000. Performance shown for
the Administrator Class, Advisor Class, and Investor Class shares 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 for the Administrator Class shares
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 for the Advisor Class
shares 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.
(4) For Administrator, Advisor, and Investor classes, reflects the gross
expense ratio as stated in the March 1, 2008, prospectus. For the Class C
shares, this is the first fiscal year. This gross expense ratio as stated
in the April 1, 2008, prospectus is based on estimates for the current
fiscal year.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell Midcap Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 25% of
the total market capitalization of the Russell 1000 Index. You cannot
invest directly in an Index.
12 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
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Robert J. Costomiris, CFA
FUND INCEPTION
March 28, 2002
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Materials (3%)
information Technology (30%)
Consumer Discretionary (11%)
Consumer Staples (15%)
industrials (14%)
Health Care (8%)
Financials (14%)
Energy (2%)
Utilities (3%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Tootsie Roll Industries Incorporated 4.91%
Ultratech Incorporated 3.70%
Convergys Corporation 3.58%
Molex Incorporated Class A 3.57%
Playboy Enterprises Incorporated Class B 3.29%
Intermec Incorporated 3.21%
LeafFrog Enterprises Incorporated 3.18%
CRA International Incorporated 2.98%
NiSource Incorporated 2.91%
Asset Acceptance Capital Corporation 2.87%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 13
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP DISCIPLINED FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
Life Life
SMALL CAP DISCIPLINED FUND 6 Months* 1 Year 5 Year of Fund 6 Months* 1 Year 5 Year of Fund Gross(4) Net(5)
- --------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFSMX) (17.73) (19.09) 14.24 10.65 (12.73) (14.16) 15.60 11.74 1.53% 1.45%
Class C (WSCDX) (14.01) (15.74) 14.95 11.15 (13.01) (14.74) 14.95 11.15 2.28% 2.20%
Administrator Class (WFSDX) (12.58) (13.91) 15.86 11.94 1.37% 1.20%
Institutional Class (WFSSX) (12.55) (13.74) 15.98 12.04 1.10% 1.00%
Investor Class (SCOVX) (12.75) (14.18) 15.60 11.73 1.72% 1.49%
BENCHMARK
Russell 2000(R) Value Index(6) (11.55) (15.13) 14.08 8.28
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND 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.
- ----------
(3) Class A and Class C shares incepted on March 31, 2008. Performance shown
for the Class A and Class C shares reflects the performance of the Investor
Class shares, which incepted on March 28, 2002, and includes expenses that
are not applicable to and higher than those of the Class A shares and lower
than those of the Class C shares. The Investor Class shares annual returns
are substantially similar to what the Class A shares and Class C shares
would be because the Investor Class shares, Class A shares, and Class C
shares are invested in the same portfolio and their returns differ only to
the extent that they do not have the same expenses. Investor Class shares
incepted on March 28, 2002. Administrator Class and Institutional Class
shares incepted on April 11, 2005. Performance shown prior to the inception
of the Institutional Class 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.
(4) For Administrator, Institutional, and Investor classes, reflects the gross
expense ratio as stated in the March 1, 2008, prospectus. For A and C
classes, this is the first fiscal year. These gross expense ratios as
stated in the April 1, 2008, prospectus are based on estimates for the
current fiscal year.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell 2000 Value Index measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
14 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
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Erik C. Astheimer
I. Charles Rinaldi
Michael Schneider, CFA
FUND INCEPTION
March 28, 2002
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (11%)
Energy (28%)
Financials (12%)
Health Care (8%)
Industrials (12%)
Information Technology (14%)
Materials (15%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Hill International Incorporated 5.86%
Randgold Resources Limited ADR 5.00%
Goldcorp Incorporated 3.98%
McMoRan Exploration Company 3.28%
Champion Enterprises Incorporated 2.98%
Global Industries Limited 2.81%
Annaly Mortgage Management Incorporated 2.62%
Willbros Group Incorporated 2.52%
Encorium Group Incorporated 2.33%
Gentex Corporation 2.08%
- ----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Performance Highlights
Wells Fargo Advantage Small and Mid Cap Stock Funds 15
WELLS FARGO ADVANTAGE SMALL/MID CAP VALUE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
Life Life
SMALL/MID CAP VALUE FUND 6 Months* 1 Year 5 Year of Fund 6 Months* 1 Year 5 Year of Fund Gross(4) Net(5)
- ------------------------------ --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFVAX) (16.27) (12.69) 16.34 8.86 (11.16) (7.39) 17.73 9.93 1.51% 1.40%
Class C (WFCVX) (12.46) (9.07) 17.16 9.44 (11.46) (8.07) 17.16 9.44 2.26% 2.15%
Administrator Class (WWMDX) (11.07) (7.18) 17.98 10.12 1.33% 1.15%
Institutional Class (WWMSX) (10.96) (7.01) 18.05 10.17 1.06% 0.95%
Investor Class (SMMVX) (11.24) (7.52) 17.69 9.90 1.68% 1.49%
BENCHMARK
Russell 2500 Value Index(6) (10.32) (14.48) 14.61 9.16
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND 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.
- ----------
(3) Class A and Class C shares incepted on March 31, 2008. Performance shown
for the Class A and Class C shares reflects the performance of the Investor
Class shares, which incepted on March 28, 2002, and includes expenses that
are not applicable to and higher than those of the Class A shares and lower
than those of the Class C shares. The Investor Class shares annual returns
are substantially similar to what the Class A shares and Class C shares
would be because the Investor Class shares, Class A shares, and Class C
shares are invested in the same portfolio and their returns differ only to
the extent that they do not have the same expenses. Investor Class shares
incepted on March 28, 2002. Administrator Class and Institutional Class
shares incepted on April 11, 2005. Performance shown prior to the inception
of the Institutional Class 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.
(4) For the Administrator class and Investor class, the gross expense ratio as
stated in the March 1, 2008, prospectus. For the Institutional class, this
is the first fiscal year for the Fund, this gross expense ratio as stated
in the March 1, 2008 prospectus is based on estimates for the current
fiscal year. For the Class A and Class C shares, this is the first fiscal
year. These gross expense ratios as stated in the April 1, 2008 prospectus
are based on estimates for the current fiscal year.
(5) The investment adviser has contractually committed through February 28,
2009, 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.
(6) The Russell 2500 Value Index measures the performance of those Russell 2500
companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
16 Wells Fargo Advantage Small and Mid Cap Stock Funds
Fund Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, redemption fees (if
any) and exchange fees (if any); and (2) ongoing costs, including management
fees; distribution (12b-1) and/or shareholder service fees; and other Fund
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
six-month period and held for the entire six-month period, from November 1, 2007
to April 30, 2008.
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the "Actual" line under the heading entitled "Expenses Paid During Period"
for your applicable class of shares to estimate the expenses you paid on your
account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE DISCOVERY FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
- ------------------------------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $ 876.30 $ 6.20 1.33%
Hypothetical (5% return before expenses) $1,000.00 $1,018.25 $ 6.67 1.33%
CLASS C
Actual $1,000.00 $ 871.60 $ 9.68 2.08%
Hypothetical (5% return before expenses) $1,000.00 $1,014.52 $10.42 2.08%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 877.10 $ 5.37 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,019.14 $ 5.77 1.15%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 877.90 $ 4.44 0.95%
Hypothetical (5% return before expenses) $1,000.00 $1,020.14 $ 4.77 0.95%
INVESTOR CLASS
Actual $1,000.00 $ 876.00 $ 6.44 1.38%
Hypothetical (5% return before expenses) $1,000.00 $1,018.00 $ 6.92 1.38%
Wells Fargo Advantage Small and Mid Cap Stock Funds 17
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
11-01-2007 04-30-2008 Period(1) Expense Ratio
------------- ------------- ----------- -------------
WELLS FARGO ADVANTAGE ENTERPRISE FUND
CLASS C(2)
Actual $1,000.00 $ 895.50 $ 1.67 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,002.34 $ 1.76 2.15%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 899.80 $ 5.43 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,019.14 $ 5.77 1.15%
ADVISOR CLASS
Actual $1,000.00 $ 898.30 $ 6.61 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 901.00 $ 4.25 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,020.39 $ 4.52 0.90%
INVESTOR CLASS
Actual $1,000.00 $ 897.90 $ 7.27 1.54%
Hypothetical (5% return before expenses) $1,000.00 $1,017.21 $ 7.72 1.54%
WELLS FARGO ADVANTAGE MID CAP DISCIPLINED FUND
CLASS A
Actual $1,000.00 $ 944.30 $ 6.04 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.65 $ 6.27 1.25%
CLASS C
Actual $1,000.00 $ 940.70 $ 9.65 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,014.92 $10.02 2.00%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 944.80 $ 5.56 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,019.14 $ 5.77 1.15%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 946.20 $ 4.36 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,020.39 $ 4.52 0.90%
INVESTOR CLASS
Actual $1,000.00 $ 944.60 $ 6.33 1.31%
Hypothetical (5% return before expenses) $1,000.00 $1,018.35 $ 6.57 1.31%
WELLS FARGO ADVANTAGE OPPORTUNITY FUND
CLASS C(2)
Actual $1,000.00 $ 925.10 $ 1.61 2.04%
Hypothetical (5% return before expenses) $1,000.00 $1,002.43 $ 1.67 2.04%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 929.70 $ 4.99 1.04%
Hypothetical (5% return before expenses) $1,000.00 $1,019.69 $ 5.22 1.04%
ADVISOR CLASS
Actual $1,000.00 $ 928.70 $ 6.19 1.29%
Hypothetical (5% return before expenses) $1,000.00 $1,018.45 $ 6.47 1.29%
INVESTOR CLASS
Actual $1,000.00 $ 928.20 $ 6.47 1.35%
Hypothetical (5% return before expenses) $1,000.00 $1,018.15 $ 6.77 1.35%
18 Wells Fargo Advantage Small and Mid Cap Stock Funds
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE SMALL CAP DISCIPLINED FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
- ------------------------------------------------ ------------- ------------- ----------- -------------
CLASS A(2)
Actual $1,000.00 $ 872.70 $ 1.11 1.45%
Hypothetical (5% return before expenses) $1,000.00 $1,002.91 $ 1.19 1.45%
CLASS C(2)
Actual $1,000.00 $ 869.90 $ 1.69 2.20%
Hypothetical (5% return before expenses) $1,000.00 $1,002.30 $ 1.81 2.20%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 874.20 $ 5.59 1.20%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.02 1.20%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 874.50 $ 4.66 1.00%
Hypothetical (5% return before expenses) $1,000.00 $1,019.89 $ 5.02 1.00%
INVESTOR CLASS
Actual $1,000.00 $ 872.50 $ 6.94 1.49%
Hypothetical (5% return before expenses) $1,000.00 $1,017.45 $ 7.47 1.49%
WELLS FARGO ADVANTAGE SMALL/MID CAP VALUE FUND
CLASS A
Actual $1,000.00 $ 888.40 $ 6.57 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
CLASS C
Actual $1,000.00 $ 885.40 $10.08 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 889.30 $ 5.40 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,019.14 $ 5.77 1.15%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 890.40 $ 4.47 0.95%
Hypothetical (5% return before expenses) $1,000.00 $1,020.14 $ 4.77 0.95%
INVESTOR CLASS
Actual $1,000.00 $ 887.60 $ 6.99 1.49%
Hypothetical (5% return before expenses) $1,000.00 $1,017.45 $ 7.47 1.49%
- ----------
(1) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in
the most recent fiscal half year divided by the number of days in the
fiscal year (to reflect the one-half year period).
(2) This Class commenced operations on March 31, 2008. Actual expenses shown
for this Class are equal to the annualized expense ratio multiplied by the
average account value over the period, multiplied by 30/366 (to reflect the
period from March 31 to April 30, 2008).
Wells Fargo Advantage Small and Mid Cap Stock Funds 19
Portfolio of Investments--April 30, 2008 (Unaudited)
DISCOVERY FUND
SHARES SECURITY NAME Value
- ---------- ------------------------------------------------------ -----------
COMMON STOCKS: 97.23%
AEROSPACE, DEFENSE: 1.65%
154,219 BE AEROSPACE INCORPORATED+ $ 6,224,279
-----------
AMUSEMENT & RECREATION SERVICES: 1.14%
119,400 WMS INDUSTRIES INCORPORATED+<< 4,321,086
-----------
APPAREL & ACCESSORY STORES: 3.43%
23,600 ABERCROMBIE & FITCH COMPANY CLASS A<< 1,753,716
168,300 GUESS? INCORPORATED 6,442,524
139,300 URBAN OUTFITTERS INCORPORATED+<< 4,771,025
12,967,265
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE
BUILDERS: 0.45%
47,600 PERINI CORPORATION+ 1,722,168
-----------
BUSINESS SERVICES: 13.06%
301,500 ACTIVISION INCORPORATED+ 8,155,575
81,600 AKAMAI TECHNOLOGIES INCORPORATED+<< 2,918,832
148,700 ANSYS INCORPORATED+<< 5,982,201
130,000 CITRIX SYSTEMS INCORPORATED+ 4,257,500
159,900 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 5,156,775
132,453 CONCUR TECHNOLOGIES INCORPORATED+<< 4,389,492
253,600 OMNITURE INCORPORATED+<< 5,787,152
158,700 PHASE FORWARD INCORPORATED+ 2,920,080
267,200 THE TRIZETTO GROUP INCORPORATED+ 5,624,560
150,800 VOCUS INCORPORATED+<< 4,190,732
49,382,899
-----------
CHEMICALS & ALLIED PRODUCTS: 7.90%
163,100 BIOMARIN PHARMACEUTICAL INCORPORATED+<< 5,946,626
113,100 CHARLES RIVER LABORATORIES INTERNATIONAL INCORPORATED+ 6,565,455
40,153 FMC CORPORATION 2,520,805
125,100 IMMUCOR INCORPORATED+ 3,375,198
157,744 INNOPHOS HOLDINGS INCORPORATED<< 2,825,195
61,200 INVITROGEN CORPORATION+ 5,726,484
220,600 MYLAN LABORATORIES INCORPORATED+<< 2,905,302
29,865,065
-----------
COAL MINING: 2.61%
160,300 ALPHA NATURAL RESOURCES INCORPORATED+ 7,798,595
36,000 ARCH COAL INCORPORATED 2,064,960
9,863,555
-----------
COMMUNICATIONS: 11.82%
139,900 AMERICAN TOWER CORPORATION CLASS A+ 6,074,458
151,783 EQUINIX INCORPORATED+<< 13,724,219
211,700 FOUNDRY NETWORKS INCORPORATED+<< 2,694,941
248,074 NII HOLDINGS INCORPORATED+ 11,346,905
335,800 SBA COMMUNICATIONS CORPORATION CLASS A+ 10,859,772
44,700,295
-----------
CONSTRUCTION SPECIAL TRADE CONTRACTORS: 2.46%
207,500 ACERGY SA+<< 5,110,725
105,000 CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES 4,183,200
9,293,925
-----------
20 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
DISCOVERY FUND
SHARES SECURITY NAME Value
- ---------- ------------------------------------------------------ -----------
DEPOSITORY INSTITUTIONS: 1.64%
332,800 NEW YORK COMMUNITY BANCORP INCORPORATED $6,213,376
-----------
E-COMMERCE/SERVICES: 1.64%
48,700 PRICELINE.COM INCORPORATED+<< 6,216,068
-----------
EATING & DRINKING PLACES: 0.85%
115,000 BURGER KING HOLDINGS INCORPORATED 3,208,500
-----------
ELECTRIC, GAS & SANITARY SERVICES: 0.76%
43,350 CLEAN HARBORS INCORPORATED+ 2,859,800
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT: 4.95%
360,100 MARVELL TECHNOLOGY GROUP LIMITED+ 4,663,295
197,965 NETLOGIC MICROSYSTEMS INCORPORATED+<< 6,491,272
293,250 SOLERA HOLDINGS INCORPORATED+ 7,568,783
18,723,350
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES: 1.17%
153,500 KBR Incorporated 4,426,940
-----------
FOOD & KINDRED PRODUCTS: 1.41%
87,700 CENTRAL EUROPEAN DISTRIBUTION CORPORATION+<< 5,342,684
-----------
HEALTH SERVICES: 2.32%
68,811 COVANCE INCORPORATED+ 5,765,674
86,500 PSYCHIATRIC SOLUTIONS INCORPORATED+ 3,002,415
8,768,089
-----------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS: 3.30%
114,502 FOSTER WHEELER LIMITED+ 7,292,632
96,544 MCDERMOTT INTERNATIONAL INCORPORATED+ 5,172,828
12,465,460
-----------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES: 0.54%
197,274 HHGREGG INCORPORATED+<< 2,026,004
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 6.13%
208,100 DATA DOMAIN INCORPORATED+<< 4,526,175
117,400 GAMESTOP CORPORATION CLASS A+ 6,461,696
79,400 JOY GLOBAL INCORPORATED 5,895,450
279,000 NETEZZA CORPORATION+ 2,957,400
27,300 SPX CORPORATION 3,357,900
23,198,621
-----------
INSURANCE CARRIERS: 2.25%
91,300 ASSURANT INCORPORATED 5,934,500
69,700 ENDURANCE SPECIALTY HOLDINGS LIMITED 2,587,961
8,522,461
-----------
LEGAL SERVICES: 1.18%
69,687 FTI CONSULTING INCORPORATED+ 4,459,968
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS: 8.94%
60,500 C.R. BARD INCORPORATED 5,697,285
74,500 DENTSPLY INTERNATIONAL INCORPORATED 2,895,815
57,200 ENERGY CONVERSION DEVICES INCORPORATED+<< 1,864,148
406,600 EV3 INCORPORATED+<< 3,378,846
Wells Fargo Advantage Small and Mid Cap Stock Funds 21
Portfolio of Investments-April 30, 2008 (Unaudited)
DISCOVERY FUND
SHARES SECURITY NAME Value
- ---------- ------------------------------------------------------ -----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS (continued)
54,600 HAEMONETICS CORPORATION+<< $3,124,758
140,364 HOLOGIC INCORPORATED+<< 4,097,225
52,511 ICON PLC ADR+ 3,780,792
215,800 ION GEOPHYSICAL CORPORATION+ 3,437,694
198,500 WRIGHT MEDICAL GROUP INCORPORATED+<< 5,542,120
33,818,683
-----------
MEDICAL EQUIPMENT & SUPPLIES: 0.83%
10,900 INTUITIVE SURGICAL INCORPORATED+ 3,152,934
-----------
METAL MINING: 0.85%
20,100 CLEVELAND CLIFFS INCORPORATED 3,224,040
-----------
MISCELLANEOUS RETAIL: 0.48%
64,000 DICK'S SPORTING GOODS INCORPORATED+<< 1,830,400
-----------
OIL & GAS EXTRACTION: 6.51%
53,400 ATWOOD OCEANICS INCORPORATED+<< 5,376,846
98,000 FOREST OIL CORPORATION+ 5,775,140
133,000 NEWFIELD EXPLORATION COMPANY+ 8,081,080
86,600 PLAINS EXPLORATION & PRODUCTION COMPANY+<< 5,393,448
24,626,514
-----------
PRIMARY METAL INDUSTRIES: 1.45%
79,900 KAISER ALUMINUM CORPORATION 5,483,537
-----------
REAL ESTATE: 1.16%
100,800 GAFISA SA<< 4,389,840
-----------
TRANSPORTATION EQUIPMENT: 2.89%
117,900 HORNBECK OFFSHORE+<< 5,879,673
173,050 SPIRIT AEROSYSTEMS HOLDINGS INCORPORATED+ 5,047,869
10,927,542
-----------
WHOLESALE TRADE NON-DURABLE GOODS: 1.46%
114,868 AIRGAS INCORPORATED 5,528,595
-----------
TOTAL COMMON STOCKS (COST $316,273,806) 367,753,943
-----------
COLLATERAL FOR SECURITIES LENDING: 18.08%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 1.06%
577,328 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS
PORTFOLIO 577,328
706,006 BLACKROCKTEMPORARY #24 MONEY MARKET FUND 706,006
1,496,028 DAILY ASSETS FUND INSTITUTIONAL 1,496,028
1,241,140 DREYFUS CASH MANAGEMENT FUND 1,241,140
4,020,502
-----------
PRINCIPAL INTEREST RATE MATURITY DATE
- ------------------------------------------------ ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 17.02%
$ 666,904 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 666,595
229,721 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 229,366
720,977 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 719,699
540,733 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 540,562
427,179 APRECO LLC++ 2.94 05/28/2008 426,246
1,512,250 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 1,512,250
22 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
DISCOVERY FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ----------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 360,489 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87% 05/13/2008 $ 360,144
450,611 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 450,207
1,233,466 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,233,535) 2.00 05/01/2008 1,233,466
1,375,589 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,375,683) 2.47 05/01/2008 1,375,589
450,611 BANK OF IRELAND++ +/- 3.06 10/14/2008 450,376
720,977 BANK OF SCOTLAND PLC 2.80 05/29/2008 719,413
4,838,352 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED 2.00 05/01/2008 4,838,352
(MATURITY VALUE $4,838,352)
360,489 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 359,739
370,312 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 369,493
360,489 CHARIOT FUNDING LLC++ 2.70 05/14/2008 360,137
360,489 CHARIOT FUNDING LLC++ 2.76 05/29/2008 359,718
956,089 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.40 02/25/2008 688,384
735,309 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.48 05/19/2008 529,423
229,721 CIESCO LLC++ 2.90 05/21/2008 229,370
531,721 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 530,371
1,804,246 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 1,804,246
1,351,832 CULLINAN FINANCE CORPORATION++ +/- 2.51 08/04/2008 1,348,806
4,838,352 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $4,838,621) 2.00 05/01/2008 4,838,352
720,977 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 719,737
1,265,315 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 1,264,907
360,489 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 360,190
360,489 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 359,745
1,802,443 FIVE FINANCE INCORPORATED++ +/- 2.66 07/09/2008 1,795,769
1,441,955 GALLEON CAPITAL LLC++ 2.90 05/21/2008 1,439,631
1,494,225 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 1,493,624
1,802,443 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 1,799,884
1,171,588 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 1,171,588
811,099 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 810,611
1,300,355 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 1,299,849
901,222 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 901,222
901,222 LINKS FINANCE LLC++ +/- 2.52 08/15/2008 896,529
1,441,955 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $1,442,051) 2.40 05/01/2008 1,441,955
379,288 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 378,846
360,489 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 359,734
83,363 MORGAN STANLEY+/- 2.84 10/15/2008 83,297
1,649,235 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,649,345) 2.41 05/01/2008 1,649,235
817,138 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $817,183) 2.00 05/01/2008 817,138
720,977 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 720,114
901,222 NORTHERN ROCK PLC++ +/- 2.79 10/03/2008 896,407
829,124 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 829,059
525,484 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 524,320
860,667 PICAROS FUNDING LLC++ 2.60 05/06/2008 860,356
360,489 PRUDENTIAL PLC++ 2.88 05/28/2008 359,713
Wells Fargo Advantage Small and Mid Cap Stock Funds 23
Portfolio of Investments--April 30, 2008 (Unaudited)
DISCOVERY FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$1,441,955 RANGER FUNDING CORPORATION++ 2.90% 05/02/2008 $ 1,441,838
736,298 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 735,144
720,977 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 719,664
252,342 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 252,228
450,611 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 449,897
360,489 SLM CORPORATION++ +/- 2.73 05/12/2008 360,303
1,874,541 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 1,873,807
558,757 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.27 04/03/2008 498,188
901,222 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.47 02/15/2008 803,529
360,489 SWEDBANK MORTGAGE AB 2.95 05/27/2008 359,723
630,855 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 630,456
821,878 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 820,919
450,611 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 449,569
2,703,665 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 2,702,216
450,611 UNICREDITO ITALIANO BANK (IRELAND)++ +/- 2.74 10/14/2008 450,331
450,611 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 450,370
775,051 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.60 07/28/2008 691,035
450,611 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.84 08/07/2008 401,765
901,222 WHITE PINE FINANCE LLC++ +/- @@(A)(I) 5.43 02/22/2008 826,420
1,261,710 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 1,261,302
64,352,468
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $69,295,759) 68,372,970
------------
SHARES
- ----------
SHORT-TERM INVESTMENTS: 1.29%
4,867,385 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 4,867,385
------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,867,385) 4,867,385
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $390,436,950)* 116.60% $440,994,298
OTHER ASSETS AND LIABILITIES, NET (16.60) (62,781,116)
------ ------------
TOTAL NET ASSETS 100.00% $378,213,182
------ ------------
+ Non-income earning securities.
<< All or a portion of this security is on loan. (See Note 2)
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(i) Illiquid security.
~ 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.
++ Short-term security of an affiliate of the Fund with a cost of $4,867,385.
* 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 Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
ENTERPRISE FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ -----------
COMMON STOCKS: 95.28%
AEROSPACE, DEFENSE: 2.29%
191,452 BE AEROSPACE INCORPORATED+ $ 7,727,003
-----------
APPAREL & ACCESSORY STORES: 2.81%
33,700 ABERCROMBIE & FITCH COMPANY CLASS A<< 2,504,247
124,400 GUESS? INCORPORATED 4,762,032
64,700 URBAN OUTFITTERS INCORPORATED+<< 2,215,975
9,482,254
-----------
BIOPHARMACEUTICALS: 2.77%
79,500 CELGENE CORPORATION+ 4,940,130
94,000 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR<< 4,397,320
9,337,450
-----------
BUSINESS SERVICES: 11.31%
136,300 ANSYS INCORPORATED+<< 5,483,349
13,100 BAIDU.COM INCORPORATED ADR+<< 4,789,360
156,600 CITRIX SYSTEMS INCORPORATED+ 5,128,650
177,500 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 5,724,375
112,400 CONCUR TECHNOLOGIES INCORPORATED+<< 3,724,936
10,000 MASTERCARD INCORPORATED CLASS A<< 2,781,600
235,100 OMNITURE INCORPORATED+<< 5,364,982
35,900 SALESFORCE.COM INCORPORATED+ 2,395,607
59,100 SINA CORPORATION+ 2,730,420
38,123,279
-----------
CHEMICALS & ALLIED PRODUCTS: 7.54%
220,000 BIOMARIN PHARMACEUTICAL INCORPORATED+<< 8,021,200
98,500 CHARLES RIVER LABORATORIES INTERNATIONAL INCORPORATED+ 5,717,925
36,703 FMC CORPORATION 2,304,214
73,300 INVITROGEN CORPORATION+ 6,858,681
190,900 MYLAN LABORATORIES INCORPORATED+<< 2,514,153
25,416,173
-----------
COAL MINING: 2.02%
139,700 ALPHA NATURAL RESOURCES INCORPORATED+ 6,796,405
-----------
COMMUNICATIONS: 9.82%
124,564 AMERICAN TOWER CORPORATION CLASS A+ 5,408,569
128,564 EQUINIX INCORPORATED+<< 11,624,757
202,752 NII HOLDINGS INCORPORATED+ 9,273,876
209,800 SBA COMMUNICATIONS CORPORATION CLASS A+ 6,784,932
33,092,134
-----------
CONSTRUCTION SPECIAL TRADE CONTRACTORS: 1.49%
203,528 ACERGY SA+<< 5,012,895
-----------
DEPOSITORY INSTITUTIONS: 2.24%
225,800 NEW YORK COMMUNITY BANCORP INCORPORATED 4,215,686
45,200 NORTHERN TRUST CORPORATION 3,349,772
7,565,458
-----------
E-COMMERCE/SERVICES: 1.54%
40,700 PRICELINE.COM INCORPORATED+<< 5,194,948
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 25
Portfolio of Investments--April 30, 2008 (Unaudited)
ENTERPRISE FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------- ------------
EATING & DRINKING PLACES: 0.83%
100,500 BURGER KING HOLDINGS INCORPORATED $ 2,803,950
------------
ELECTRIC, GAS & SANITARY SERVICES: 1.29%
65,950 CLEAN HARBORS INCORPORATED+ 4,350,722
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT
COMPUTER EQUIPMENT: 5.42%
13,299 FIRST SOLAR INCORPORATED+ 3,883,175
445,100 MARVELL TECHNOLOGY GROUP LIMITED+ 5,764,045
64,100 MEMC ELECTRONIC MATERIALS INCORPORATED+ 4,036,377
222,850 NVIDIA CORPORATION+ 4,579,568
18,263,165
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES: 0.98%
114,500 KBR INCORPORATED 3,302,180
------------
FOOD & KINDRED PRODUCTS: 1.36%
75,450 CENTRAL EUROPEAN DISTRIBUTION CORPORATION+<< 4,596,414
------------
HEALTH SERVICES: 2.29%
59,915 COVANCE INCORPORATED+ 5,020,278
77,800 PSYCHIATRIC SOLUTIONS INCORPORATED+ 2,700,438
7,720,716
------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION
CONTRACTS: 3.31%
98,436 FOSTER WHEELER LIMITED+ 6,269,389
91,077 MCDERMOTT INTERNATIONAL INCORPORATED+ 4,879,906
11,149,295
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 6.97%
92,800 CUMMINS INCORPORATED 5,813,920
110,400 GAMESTOP CORPORATION CLASS A+ 6,076,416
72,000 JOY GLOBAL INCORPORATED 5,346,000
38,400 NATIONAL OILWELL VARCO INCORPORATED+ 2,628,480
29,600 SPX CORPORATION 3,640,800
23,505,616
------------
INSURANCE CARRIERS: 0.68%
61,600 ENDURANCE SPECIALTY HOLDINGS LIMITED 2,287,208
------------
LEGAL SERVICES: 1.20%
63,390 FTI CONSULTING INCORPORATED+ 4,056,960
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS: 5.90%
52,162 C.R. BARD INCORPORATED 4,912,096
67,600 DENTSPLY INTERNATIONAL INCORPORATED 2,627,612
46,800 HAEMONETICS CORPORATION+<< 2,678,364
121,120 HOLOGIC INCORPORATED+<< 3,535,493
106,100 THERMO FISHER SCIENTIFIC INCORPORATED+ 6,140,007
19,893,572
------------
MEDICAL MANAGEMENT SERVICES: 0.86%
64,550 COVENTRY HEALTH CARE INCORPORATED+ 2,887,322
------------
METAL MINING: 0.86%
18,000 CLEVELAND CLIFFS INCORPORATED 2,887,200
------------
26 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
ENTERPRISE FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------- ------------
MISCELLANEOUS RETAIL: 1.50%
124,882 CVS CAREMARK CORPORATION $ 5,041,486
------------
OIL & GAS EXTRACTION: 7.38%
80,110 CHESAPEAKE ENERGY CORPORATION 4,141,687
97,900 NEWFIELD EXPLORATION COMPANY+ 5,948,404
116,300 NOBLE CORPORATION 6,545,364
77,300 PLAINS EXPLORATION & PRODUCTION COMPANY+ 4,814,244
42,300 WEATHERFORD INTERNATIONAL LIMITED+ 3,412,341
24,862,040
------------
PIPELINES: 1.81%
171,500 THE WILLIAMS COMPANIES INCORPORATED 6,088,250
------------
PRIMARY METAL INDUSTRIES: 0.99%
28,300 PRECISION CASTPARTS CORPORATION 3,326,948
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 1.22%
74,800O WENS-ILLINOIS INCORPORATED+ 4,125,220
------------
TRANSPORTATION EQUIPMENT: 4.64%
68,800 GOODRICH CORPORATION 4,688,720
70,600 HORNBECK OFFSHORE+<< 3,520,822
77,800 SPIRIT AEROSYSTEMS HOLDINGS INCORPORATED+ 2,269,426
84,400 TEXTRON INCORPORATED 5,149,244
15,628,212
------------
WHOLESALE TRADE NON-DURABLE GOODS: 1.96%
137,007 AIRGAS INCORPORATED 6,594,145
------------
TOTAL COMMON STOCKS (COST $299,723,898) 321,118,620
------------
COLLATERAL FOR SECURITIES LENDING: 11.66%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.68%
331,950 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS
PORTFOLIO 331,950
405,936 BLACKROCKTEMPORARY #24 MONEY MARKET FUND 405,936
860,179 DAILY ASSETS FUND INSTITUTIONAL 860,179
713,625 DREYFUS CASH MANAGEMENT FUND 713,625
2,311,690
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 10.98%
$383,453 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 383,276
132,084 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 131,880
414,544 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 413,809
310,908 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 310,810
245,617 APRECO LLC++ 2.94 05/28/2008 245,081
869,506 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 869,506
207,272 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 207,074
259,090 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 258,858
709,212 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $709,251) 2.00 05/01/2008 709,212
790,930 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $790,984) 2.47 05/01/2008 790,930
Wells Fargo Advantage Small and Mid Cap Stock Funds 27
Portfolio of Investments--April 30, 2008 (Unaudited)
ENTERPRISE FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------------- ------------- ------------- ----------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 259,090 BANK OF IRELAND+++/- 3.06% 10/14/2008 $ 258,955
414,544 BANK OF SCOTLAND PLC 2.80 05/29/2008 413,645
2,781,933 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,782,088) 2.00 05/01/2008 2,781,933
207,272 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 206,841
212,920 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 212,449
207,272 CHARIOT FUNDING LLC++ 2.70 05/14/2008 207,070
207,272 CHARIOT FUNDING LLC++ 2.76 05/29/2008 206,829
549,728 CHEYNE FINANCE LLC+++/-@@(A)(I) 6.40 02/25/2008 395,804
422,785 CHEYNE FINANCE LLC+++/-@@(A)(I) 6.48 05/19/2008 304,405
132,084 CIESCO LLC++ 2.90 05/21/2008 131,882
305,726 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 304,951
1,037,397 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 1,037,397
777,270 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 775,530
2,781,933 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,782,088) 2.00 05/01/2008 2,781,933
414,544 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 413,831
727,525 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 727,291
207,272 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 207,100
207,272 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 206,845
1,036,360 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 1,032,523
829,088 GALLEON CAPITAL LLC++ 2.90 05/21/2008 827,753
859,143 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 858,797
1,036,360 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 1,034,889
673,634 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 673,634
466,362 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 466,081
747,672 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 747,381
518,180 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 518,180
518,180 LINKS FINANCE LLC+++/- 2.52 08/15/2008 515,482
829,088 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT
- 102% COLLATERALIZED (MATURITY VALUE $829,143) 2.40 05/01/2008 829,088
218,081 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 217,827
207,272 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 206,838
47,932 MORGAN STANLEY+/- 2.84 10/15/2008 47,893
469,834 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $469,860) 2.00 05/01/2008 469,834
948,270 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $948,333) 2.41 05/01/2008 948,270
414,544 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 414,048
518,180 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 515,412
476,726 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 476,689
302,141 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 301,471
494,862 PICAROS FUNDING LLC++ 2.60 05/06/2008 494,683
207,272 PRUDENTIAL PLC++ 2.88 05/28/2008 206,826
829,088 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 829,022
423,353 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 422,690
414,544 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 413,789
145,090 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 145,025
259,090 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 258,680
28 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
ENTERPRISE FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ---------------------------------------------------- ------------- -------------- --------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 207,272 SLM Corporation+++/- 2.73% 05/12/2008 $ 207,165
1,077,815 Solitaire Funding LLC++ 2.82 05/06/2008 1,077,393
321,272 Stanfield Victoria Funding LLC+++/-@@(a)(i) 5.27 04/03/2008 286,446
518,180 Stanfield Victoria Funding LLC+++/-@@(a)(i) 5.47 02/15/2008 462,009
207,272 Swedbank Mortgage AB 2.95 05/27/2008 206,832
362,726 Thames Asset Global Securitization #1 Incorporated++ 2.85 05/09/2008 362,496
472,560 Thames Asset Global Securitization #1 Incorporated 3.00 05/15/2008 472,008
259,090 Tulip Funding Corporation++ 2.88 05/30/2008 258,491
1,554,541 UBS Finance (Delaware) LLC 2.76 05/08/2008 1,553,708
259,090 UniCredito Italiano Bank (Ireland)+++/- 2.74 10/14/2008 258,929
259,090 UniCredito Italiano Bank (Ireland) Series LIB+++/- 2.76 10/08/2008 258,952
445,635 Victoria Finance LLC+++/-@@(a)(i) 2.60 07/28/2008 397,328
259,090 Victoria Finance LLC+++/-@@(a)(i) 2.84 08/07/2008 231,005
518,180 White Pine Finance LLC+++/-@@(a)(i) 5.43 02/22/2008 475,171
725,452 Windmill Funding Corporation++ 2.88 05/05/2008 725,217
37,001,082
--------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $ 39,966,258) 39,312,772
--------------
SHARES
- ----------
SHORT-TERM INVESTMENTS: 0.91%
3,055,550 Wells Fargo Advantage Money Market Trust~++ 3,055,550
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,055,550) 3,055,550
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $342,745,706)* 107.85% $ 363,486,942
Other Assets and Liabilities, Net (7.85) (26,449,328)
------ --------------
TOTAL NET ASSETS 100.00% $ 337,037,614
------ --------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan. (See Note 2)
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended. +/-Variable rate investments.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(i) Illiquid security.
~ 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.
++ Short-term security of an affiliate of the Fund with a cost of $3,055,550.
* 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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 29
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ------------ ----------------------------------------------------------------------- ------------
COMMON STOCKS: 84.00%
APPAREL & ACCESSORY STORES: 0.45%
210,000 LIMITED BRANDS INCORPORATED $ 3,889,200
------------
BUSINESS SERVICES: 12.51%
830,000 CA INCORPORATED<< 18,376,200
235,000 CONVERGYS CORPORATION+ 3,694,200
540,000 ELECTRONIC ARTS INCORPORATED+ 27,793,800
510,000 ELECTRONIC DATA SYSTEMS CORPORATION 9,465,600
2,360,000 HLTH CORPORATION+<< 26,243,200
175,000 JUNIPER NETWORKS INCORPORATED+ 4,833,500
567,000 MONSTER WORLDWIDE INCORPORATED+ 13,795,110
164,533 TOTAL SYSTEM SERVICES INCORPORATED 3,915,885
108,117,495
------------
CHEMICALS & ALLIED PRODUCTS: 3.95%
2,500 DOW CHEMICAL COMPANY 100,375
405,000 HOSPIRA INCORPORATED+<< 16,665,750
755,000 NALCO HOLDING COMPANY 17,357,450
34,123,575
------------
COMMUNICATIONS: 1.22%
345,000 CLEAR CHANNEL OUTDOOR HOLDINGS INCORPORATED+<< 6,561,900
130,200 LIBERTY MEDIA CORPORATION INTERACTIVE SERIES A+ 1,969,926
250,000 SPRINT NEXTEL CORPORATION<< 1,997,500
10,529,326
------------
COMPUTER TECHNOLOGIES: 0.56%
203,333 METAVANTE TECHNOLOGIES INCORPORATED+ 4,792,559
------------
DEPOSITORY INSTITUTIONS: 3.22%
28,302 BANK OF NEW YORK MELLON CORPORATION 1,231,986
785,000 US BANCORP 26,603,650
27,835,636
------------
EDUCATIONAL SERVICES: 0.15%
117,200 CORINTHIAN COLLEGES INCORPORATED+<< 1,330,220
------------
ELECTRIC, GAS & SANITARY SERVICES: 8.65%
1,559,500 NISOURCE INCORPORATED 27,915,050
77,000 SCANA CORPORATION 3,036,110
1,214,000 WASTE MANAGEMENT INCORPORATED 43,825,400
74,776,560
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 7.21%
1,750,000 FLEXTRONICS INTERNATIONAL LIMITED+ 18,182,500
40,000 KLA-TENCOR CORPORATION<< 1,747,200
1,199,400 MOLEX INCORPORATED CLASS A 31,088,448
625,000 MOTOROLA INCORPORATED 6,225,000
593,474 NORTEL NETWORKS CORPORATION ADR+<< 5,068,268
62,311,416
------------
FINANCIAL SERVICES: 2.73%
840,000 JANUS CAPITAL GROUP INCORPORATED 23,570,400
------------
30 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ------------ ----------------------------------------------------------------------------- ------------
FOOD & KINDRED PRODUCTS: 15.32%
200,000 COCA-COLA ENTERPRISES INCORPORATED $ 4,500,000
740,000 CONAGRA FOODS INCORPORATED 17,434,400
58,200 HERCULES INCORPORATED 1,094,160
657,200 SARA LEE CORPORATION 9,535,972
870,000 THE HERSHEY COMPANY<< 32,520,600
1,469,913 TOOTSIE ROLL INDUSTRIES INCORPORATED<< 35,762,983
415,000 WM. WRIGLEY JR. COMPANY 31,606,400
132,454,515
------------
FOOTWEAR: 0.49%
410,000 CROCS INCORPORATED+<< 4,186,100
------------
GENERAL MERCHANDISE STORES: 1.01%
165,000 TARGET CORPORATION 8,766,450
------------
HOLDING & OTHER INVESTMENT OFFICES: 2.95%
10,424 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A<< 385,480
376,000 EXTERRAN HOLDINGS INCORPORATED+<< 25,113,040
25,498,520
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 7.76%
315,000 3M COMPANY 24,223,500
1,350,000 APPLIED MATERIALS INCORPORATED 25,191,000
2,000 CAMERON INTERNATIONAL CORPORATION+<< 98,460
3,000 DRESSER-RAND GROUP INCORPORATED+ 109,710
820,000 INTERMEC INCORPORATED+<< 17,318,400
5,000 PALL CORPORATION 173,850
67,114,920
------------
INSURANCE CARRIERS: 3.13%
1,487,400 THE PROGRESSIVE CORPORATION 27,055,806
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 3.18%
70,000 MILLIPORE CORPORATION+<< 4,907,000
530,000 PERKINELMER INCORPORATED 14,076,800
170,000 QUEST DIAGNOSTICS INCORPORATED 8,530,600
27,514,400
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 1.00%
184,300 TYCO INTERNATIONAL LIMITED 8,623,397
------------
MISCELLANEOUS RETAIL: 1.79%
445,000 WALGREEN COMPANY<< 15,508,250
------------
MOTION PICTURES: 1.98%
1,150,000 TIME WARNER INCORPORATED 17,077,500
------------
OIL & GAS EXTRACTION: 0.02%
1,000 CANADIAN NATURAL RESOURCES LIMITED 85,000
1,000 DEVON ENERGY CORPORATION 113,400
198,400
------------
PETROLEUM REFINING & RELATED INDUSTRIES: 2.42%
196,693 HESS CORPORATION<< 20,888,797
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS: 0.64%
220,000 SEALED AIR CORPORATION 5,563,800
------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 31
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ ------------
TRANSPORTATION EQUIPMENT: 1.06%
240,000 HARLEY-DAVIDSON INCORPORATED $ 9,180,000
------------
WHOLESALE TRADE NON-DURABLE GOODS: 0.37%
105,000 SYSCO CORPORATION 3,209,850
------------
WHOLESALE TRADE-DURABLE GOODS: 0.23%
75,000 BARNES GROUP INCORPORATED 1,956,000
------------
TOTAL COMMON STOCKS (COST $737,235,372) 726,073,092
------------
STRIKE PRICE EXPIRATION DATE
------------- ---------------
PURCHASED OPTIONS: 0.25%
1,435 UTILITY INDEX JUNE 530 CALL# $530.00 06/21/2008 2,166,850
TOTAL PURCHASED OPTIONS (PREMIUM PAID $2,730,805) 2,166,850
------------
COLLATERAL FOR SECURITIES LENDING: 13.54%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.79%
988,507 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS 988,507
PORTFOLIO
1,208,831 BLACKROCKTEMPORARY #24 MONEY MARKET FUND 1,208,831
2,561,514 DAILY ASSETS FUND INSTITUTIONAL 2,561,514
2,125,091 DREYFUS CASH MANAGEMENT FUND 2,125,091
6,883,943
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- ---------------
COLLATERAL INVESTED IN OTHER ASSETS: 12.75%
$1,141,880 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 1,141,351
393,331 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 392,723
1,234,464 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 1,232,275
925,848 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 925,555
731,420 APRECO LLC++ 2.94 05/28/2008 729,822
2,589,289 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 2,589,289
617,232 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 616,642
771,540 BANCO SANTANDER TOTTA LOAN++ +/- 2.73 10/15/2008 770,848
2,111,953 BANK OF AMERICA REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $2,112,070) 2.00 05/01/2008 2,111,953
2,355,296 BANK OF AMERICA REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $2,355,458) 2.47 05/01/2008 2,355,296
771,540 BANK OF IRELAND+++/- 3.06 10/14/2008 771,139
1,234,464 BANK OF SCOTLAND PLC 2.80 05/29/2008 1,231,786
8,284,275 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $8,284,735) 2.00 05/01/2008 8,284,275
617,232 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 615,948
634,052 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 632,649
617,232 CHARIOT FUNDING LLC++ 2.70 05/14/2008 616,630
617,232 CHARIOT FUNDING LLC++ 2.76 05/29/2008 615,912
1,637,025 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.40 02/25/2008 1,178,658
1,259,004 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.48 05/19/2008 906,483
393,331 CIESCO LLC++ 2.90 05/21/2008 392,730
910,418 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 908,107
3,089,247 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 3,089,247
2,314,621 CULLINAN FINANCE CORPORATION++ +/- 2.51 08/04/2008 2,309,438
32 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP DISCIPLINED FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ------------------------------------------------------ ------------- --------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$8,284,275 DEUTSCHE BANK REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $8,284,735) 2.00% 05/01/2008 $ 8,284,275
1,234,464 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 1,232,340
2,166,485 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 2,165,787
617,232 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 616,721
617,232 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 615,959
3,086,161 FIVE FINANCE INCORPORATED++ +/- 2.66 07/09/2008 3,074,733
2,468,929 GALLEON CAPITAL LLC++ 2.90 05/21/2008 2,464,951
2,558,428 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 2,557,397
3,086,161 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 3,081,779
2,006,005 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 2,006,005
1,388,772 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 1,387,936
2,226,480 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 2,225,614
1,543,081 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 1,543,081
1,543,081 LINKS FINANCE LLC++ +/- 2.52 08/15/2008 1,535,046
2,468,929 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE
AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $2,469,094) 2.40 05/01/2008 2,468,929
649,421 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 648,663
617,232 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 615,939
142,735 MORGAN STANLEY+/- 2.84 10/15/2008 142,621
1,399,111 MORGAN STANLEY REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $1,399,189) 2.00 05/01/2008 1,399,111
2,823,837 MORGAN STANLEY REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $2,824,026) 2.41 05/01/2008 2,823,837
1,234,464 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 1,232,986
1,543,081 NORTHERN ROCK PLC++ +/- 2.79 10/03/2008 1,534,837
1,419,634 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 1,419,524
899,739 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 897,746
1,473,642 PICAROS FUNDING LLC++ 2.60 05/06/2008 1,473,110
617,232 PRUDENTIAL PLC++ 2.88 05/28/2008 615,904
2,468,929 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 2,468,730
1,260,697 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 1,258,721
1,234,464 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 1,232,216
432,063 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 431,867
771,540 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 770,319
617,232 SLM CORPORATION++ +/- 2.73 05/12/2008 616,914
3,209,608 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 3,208,350
956,710 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.27 04/03/2008 853,003
1,543,081 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.47 02/15/2008 1,375,811
617,232 SWEDBANK MORTGAGE AB 2.95 05/27/2008 615,922
1,080,156 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 1,079,472
1,407,228 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 1,405,586
771,540 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 769,757
4,629,242 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 4,626,762
771,540 UNICREDITO ITALIANO BANK (IRELAND)++ +/- 2.74 10/14/2008 771,062
771,540 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB++ +/- 2.76 10/08/2008 771,128
1,327,049 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.60 07/28/2008 1,183,197
771,540 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.84 08/07/2008 687,905
Wells Fargo Advantage Small and Mid Cap Stock Funds 33
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP DISCIPLINED FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ------------------------------------------------------ ------------- --------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$1,543,081 WHITE PINE FINANCE LLC+++/-##(A)(I) 5.43% 02/22/2008 $ 1,415,005
2,160,313 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 2,159,622
110,184,936
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $118,318,558) 117,068,879
------------
SHARES
- -----------
SHORT-TERM INVESTMENTS: 13.07%
112,945,291 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 112,945,291
------------
TOTAL SHORT-TERM INVESTMENTS (COST $112,945,291) 112,945,291
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $971,230,026)* 110.86% $958,254,112
OTHER ASSETS AND LIABILITIES, NET (10.86) (93,838,252)
------ ------------
TOTAL NET ASSETS 100.00% $864,415,860
------ ------------
CONTRACTS STRIKE PRICE EXPIRATION DATE
- ---------- ------------- ---------------
WRITTEN OPTIONS: (0.22%)
(1,435) UTILITY INDEX JUNE 530 PUT# $530.00 06/21/2008 (1,879,850)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(2,234,282)) (1,879,850)
------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan. (See Note 2)
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(i) Illiquid security.
~ 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.
++ Short-term security of an affiliate of the Fund with a cost of
$112,945,291.
# All or a portion of the security is segregated as collateral for derivative
instruments. (See Note 2).
* 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.
34 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
OPPORTUNITY FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ ------------
COMMON STOCKS: 84.19%
AMUSEMENT & RECREATION SERVICES: 1.08%
508,000 INTERNATIONAL GAME TECHNOLOGY $ 17,647,920
------------
APPAREL & ACCESSORY STORES: 1.14%
531,000 NORDSTROM INCORPORATED<< 18,723,060
------------
BIOPHARMACEUTICALS: 0.69%
165,000 GENENTECH INCORPORATED+ 11,253,000
------------
BUSINESS SERVICES: 11.54%
560,000 AKAMAI TECHNOLOGIES INCORPORATED+ 20,031,200
1,635,000 CADENCE DESIGN SYSTEMS INCORPORATED<<+ 18,197,550
2,465,000 CNET NETWORKS INCORPORATED<<+ 19,103,750
410,000 ELECTRONIC ARTS INCORPORATED+ 21,102,700
830,000 IMS HEALTH INCORPORATED 20,542,500
2,665,000 INTERPUBLIC GROUP OF COMPANIES INCORPORATED<<+ 24,118,250
785,600 NCR CORPORATION+ 19,349,328
443,100 OMNICOM GROUP INCORPORATED 21,153,594
1,220,000 RED HAT INCORPORATED<<+ 25,095,400
188,694,272
------------
CHEMICALS & ALLIED PRODUCTS: 5.76%
405,000 AMGEN INCORPORATED+ 16,957,350
395,000 AVERY DENNISON CORPORATION<< 19,035,050
335,000 CLOROX COMPANY 17,755,000
671,100 PDL BIOPHARMA INCORPORATED+ 8,898,786
345,000 PRAXAIR INCORPORATED<< 31,501,950
94,148,136
------------
COMMUNICATIONS: 4.36%
850,000 CABLEVISION SYSTEMS CORPORATION NEW YORK GROUP
CLASS A+ 19,550,000
1,115,000 COMCAST CORPORATION CLASS A<< 22,567,600
370,000 LIBERTY MEDIA CORPORATION - ENTERTAINMENT CLASS A+ 9,601,500
1,300,000 LIBERTY MEDIA CORPORATION INTERACTIVE SERIES A<<+ 19,669,000
71,388,100
------------
DEPOSITORY INSTITUTIONS: 3.67%
430,000 BANK OF NEW YORK MELLON CORPORATION 18,717,900
489,200 BB&T CORPORATION<< 16,774,668
286,000 CITIGROUP INCORPORATED 7,227,220
145,000 JPMORGAN CHASE & COMPANY 6,909,250
157,300 TORONTO-DOMINION BANK ADR<< 10,339,329
59,968,367
------------
ELECTRIC, GAS & SANITARY SERVICES: 0.42%
216,900 REPUBLIC SERVICES INCORPORATED 6,895,251
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS,
EXCEPT COMPUTER EQUIPMENT: 9.48%
10,765,000 ARM HOLDINGS PLC 21,618,188
1,980,000 FLEXTRONICS INTERNATIONAL LIMITED<<+ 20,572,200
910,000 MICROSEMI CORPORATION<<+ 22,295,000
840,000 MOLEX INCORPORATED CLASS A<< 21,772,800
962,000 NETAPP INCORPORATED+ 23,280,400
3,285,000 ON SEMICONDUCTOR CORPORATION<<+ 24,538,950
937,500 POLYCOM INCORPORATED<<+ 21,000,000
155,077,538
------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 35
Portfolio of Investments--April 30, 2008 (Unaudited)
OPPORTUNITY FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ ------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED
SERVICES: 1.56%
680,000 ACCENTURE LIMITED CLASS A $ 25,534,000
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION
EQUIPMENT: 1.41%
440,000 ILLINOIS TOOL WORKS INCORPORATED 23,007,600
------------
FOOD & KINDRED PRODUCTS: 1.11%
539,300 PEPSI BOTTLING GROUP INCORPORATED 18,179,803
------------
FORESTRY: 1.10%
283,000 WEYERHAEUSER COMPANY 18,078,040
------------
GENERAL MERCHANDISE STORES: 2.47%
420,000 JCPENNEY COMPANY INCORPORATED<< 17,850,000
425,000 TARGET CORPORATION 22,580,250
40,430,250
------------
HEALTH SERVICES: 1.41%
3,245,000 HEALTH MANAGEMENT ASSOCIATION INCORPORATED CLASS A<<+ 23,136,850
------------
HOLDING & OTHER INVESTMENT OFFICES: 0.56%
330,000 OAKTREE CAPITAL MANAGEMENT 9,157,500
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 2.65%
460,000 DOVER CORPORATION 22,756,200
590,000 PALL CORPORATION 20,514,300
43,270,500
------------
INSURANCE CARRIERS: 3.94%
400,000 ACE LIMITED 24,116,000
1,670,000 MGIC INVESTMENT CORPORATION<< 21,760,100
360,000 RENAISSANCERE HOLDINGS LIMITED 18,518,400
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS: 4.84% 64,394,500
650,000 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP 20,741,500
280,000 MEDTRONIC INCORPORATED 13,630,400
440,500 RESMED INCORPORATED<<+ 18,994,360
420,000 WATERS CORPORATION<<+ 25,813,200
79,179,460
------------
MEDICAL PRODUCTS: 1.02%
225,000 ZIMMER HOLDINGS INCORPORATED+ 16,686,000
------------
METAL MINING: 1.07%
154,000 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 17,517,500
------------
MISCELLANEOUS RETAIL: 2.12%
275,000 CVS CAREMARK CORPORATION 11,101,750
1,090,000 STAPLES INCORPORATED 23,653,000
34,754,750
------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING: 1.39%
670,000 J.B. HUNT TRANSPORT SERVICES INCORPORATED<< 22,759,900
------------
OIL & GAS EXTRACTION: 9.37%
275,000 APACHE CORPORATION 37,037,000
310,000 CHESAPEAKE ENERGY CORPORATION 16,027,000
36 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
OPPORTUNITY FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ --------------
OIL & GAS EXTRACTION (continued)
313,000 TRANSOCEAN INCORPORATED $ 46,154,980
670,000 WEATHERFORD INTERNATIONAL LIMITED+ 54,048,900
153,267,880
--------------
PERSONAL SERVICES: 0.64%
360,000 REGIS CORPORATION 10,512,000
--------------
PETROLEUM REFINING & RELATED INDUSTRIES: 1.01%
355,000 SUNOCO INCORPORATED 16,475,550
--------------
PRIMARY METAL INDUSTRIES: 1.32%
286,400 NUCOR CORPORATION 21,623,200
--------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 1.37%
500,000 E.W. SCRIPPS COMPANY CLASS A<< 22,455,000
--------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 0.73%
463,447 INVESCO LIMITED 11,887,416
--------------
TRANSPORTATION BY AIR: 1.80%
392,400 AIR CANADA+ 3,198,892
645,800 AIR CANADA CLASS A+ 5,264,639
890,000 TAM SA ADR<<+ 21,004,000
TRANSPORTATION EQUIPMENT: 1.23% 29,467,531
--------------
570,000 JOHNSON CONTROLS INCORPORATED<< 20,098,200
--------------
UTILITIES: 0.64%
125,000 VANGUARD UTILITIES ETF<< 10,468,750
--------------
WATER TRANSPORTATION: 1.29%
660,000 ROYAL CARIBBEAN CRUISES LIMITED<< 21,054,000
--------------
TOTAL COMMON STOCKS (COST $1,243,445,070) 1,377,191,824
--------------
INVESTMENT COMPANIES: 1.86%
STOCK FUNDS: 1.86%
165,000 ISHARES S&P SMALLCAP 600 INDEX FUND<< 10,307,550
132,000 MIDCAP SPDR TRUST SERIES 1<< 20,097,000
30,404,550
--------------
TOTAL INVESTMENT COMPANIES (COST $30,277,167) 30,404,550
--------------
RIGHTS: 0.00%
566,000 SEAGATE TECHNOLOGY RIGHTS+(A) 0
TOTAL RIGHTS (COST $0) 0
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ----------------------------------- ------------- -------------
US TREASURY SECURITIES: 0.18%
US TREASURY BILLS: 0.18%
3,000,000 US TREASURY BILL<<@ 1.33% 07/03/2008 2,993,385
--------------
TOTAL US TREASURY SECURITIES
(COST $2,993,175) 2,993,385
--------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 37
Portfolio of Investments--April 30, 2008 (Unaudited)
OPPORTUNITY FUND
SHARES SECURITY NAME VALUE
- ----------- ----------------------------------------------------- ------------
PREFERRED STOCKS: 0.79%
295,000 HALLIBURTON COMPANY+ $ 12,879,169
TOTAL PREFERRED STOCKS (COST $10,642,745) 12,879,169
------------
COLLATERAL FOR SECURITIES LENDING: 15.71%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.92%
2,170,015 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS 2,170,015
PORTFOLIO
2,653,680 BLACKROCKTEMPORARY #24 MONEY MARKET FUND 2,653,680
5,623,150 DAILY ASSETS FUND INSTITUTIONAL 5,623,150
4,665,097 DREYFUS CASH MANAGEMENT FUND 4,665,097
15,111,942
------------
PRINCIPAL INTEREST RATE MATURITY DATE
- ----------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 14.79%
$ 2,506,706 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 2,505,544
863,458 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 862,123
2,709,952 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 2,705,146
2,032,464 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 2,031,820
1,605,647 APRECO LLC++ 2.94 05/28/2008 1,602,139
5,684,124 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 5,684,124
1,354,976 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 1,353,680
1,693,720 BANCO SANTANDER TOTTA LOAN++ +/- 2.73 10/15/2008 1,692,201
4,636,254 BANK OF AMERICA REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $4,636,512) 2.00 05/01/2008 4,636,254
5,170,453 BANK OF AMERICA REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $5,170,808) 2.47 05/01/2008 5,170,453
1,693,720 BANK OF IRELAND++ +/- 3.06 10/14/2008 1,692,839
2,709,952 BANK OF SCOTLAND PLC 2.80 05/29/2008 2,704,071
18,186,014 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $18,187,024) 2.00 05/01/2008 18,186,014
1,354,976 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 1,352,158
1,391,899 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 1,388,820
1,354,976 CHARIOT FUNDING LLC++ 2.70 05/14/2008 1,353,655
1,354,976 CHARIOT FUNDING LLC++ 2.76 05/29/2008 1,352,078
3,593,671 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.40 02/25/2008 2,587,443
2,763,822 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.48 05/19/2008 1,989,952
863,458 CIESCO LLC++ 2.90 05/21/2008 862,139
1,998,590 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 1,993,518
6,781,655 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 6,781,655
5,081,160 CULLINAN FINANCE CORPORATION++ +/- 2.51 08/04/2008 5,069,783
18,186,014 DEUTSCHE BANK REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $18,187,024) 2.00 05/01/2008 18,186,014
2,709,952 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 2,705,289
4,755,966 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 4,754,433
1,354,976 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 1,353,854
1,354,976 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 1,352,181
6,774,880 FIVE FINANCE INCORPORATED++ +/- 2.66 07/09/2008 6,749,793
5,419,904 GALLEON CAPITAL LLC++ 2.90 05/21/2008 5,411,172
5,616,376 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 5,614,113
6,774,880 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 6,765,260
38 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
OPPORTUNITY FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ----------- ----------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 4,403,672 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79% 10/16/2008 $ 4,403,672
3,048,696 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 3,046,860
4,887,669 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 4,885,769
3,387,440 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 3,387,440
3,387,440 LINKS FINANCE LLC++ +/- 2.52 08/15/2008 3,369,802
5,419,904 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE
AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $5,420,265) 2.40 05/01/2008 5,419,904
1,425,638 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 1,423,975
1,354,976 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 1,352,138
313,338 MORGAN STANLEY+/- 2.84 10/15/2008 313,088
3,071,392 MORGAN STANLEY REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $3,071,563) 2.00 05/01/2008 3,071,392
6,199,015 MORGAN STANLEY REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $6,199,430) 2.41 05/01/2008 6,199,015
2,709,952 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 2,706,706
3,387,440 NORTHERN ROCK PLC++ +/- 2.79 10/03/2008 3,369,344
3,116,445 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 3,116,202
1,975,149 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 1,970,773
3,235,005 PICAROS FUNDING LLC++ 2.60 05/06/2008 3,233,837
1,354,976 PRUDENTIAL PLC++ 2.88 05/28/2008 1,352,059
5,419,904 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 5,419,467
2,767,538 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 2,763,200
2,709,952 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 2,705,017
948,483 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 948,053
1,693,720 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 1,691,038
1,354,976 SLM CORPORATION++ +/- 2.73 05/12/2008 1,354,278
7,045,875 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 7,043,116
2,100,213 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.27 04/03/2008 1,872,550
3,387,440 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.47 02/15/2008 3,020,242
1,354,976 SWEDBANK MORTGAGE AB 2.95 05/27/2008 1,352,099
2,371,208 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 2,369,706
3,089,210 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 3,085,606
1,693,720 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 1,689,804
10,162,320 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 10,156,876
1,693,720 UNICREDITO ITALIANO BANK (IRELAND)++ +/- 2.74 10/14/2008 1,692,670
1,693,720 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB++ +/- 2.76 10/08/2008 1,692,816
2,913,198 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.60 07/28/2008 2,597,408
1,693,720 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.84 08/07/2008 1,510,121
3,387,440 WHITE PINE FINANCE LLC++ +/- @@(A)(I) 5.43 02/22/2008 3,106,282
4,742,416 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 4,740,897
241,882,940
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $259,834,320) 256,994,882
------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 39
Portfolio of Investments--April 30, 2008 (Unaudited)
OPPORTUNITY FUND
SHARES SECURITY NAME VALUE
- ----------- ----------------------------------------------------- --------------
SHORT-TERM INVESTMENTS: 12.49%
204,279,134 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ $ 204,279,134
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $204,279,134) 204,279,134
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,751,471,611)* 115.22% $1,884,742,944
OTHER ASSETS AND LIABILITIES, NET (15.22) (249,013,835)
------ --------------
TOTAL NET ASSETS 100.00% $1,635,729,109
------ --------------
- ----------
<< All or a portion of this security is on loan. (See Note 2)
+ Non-income earning securities.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
@ Zero coupon bond. Interest rate presented is yield to maturity.
+/- Variable rate investments.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments. (a)Security fair valued in accordance with the
procedures approved by the Board of Trustees.
(i) Illiquid security.
~ 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.
++ Short-term security of an affiliate of the Fund with a cost of
$204,279,134.
* 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.
40 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ---------- ---------------------------------------------------------------- -----------
COMMON STOCKS: 94.98%
AMUSEMENT & RECREATION SERVICES: 0.15%
132,100 LAKES ENTERTAINMENT INCORPORATED+<< $ 612,944
-----------
APPAREL & ACCESSORY STORES: 0.21%
194,000 HEELYS INCORPORATED+<< 843,900
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS: 0.31%
30,000 AVATAR HOLDINGS INCORPORATED+<< 1,225,800
-----------
BUSINESS SERVICES: 13.99%
909,988 ASSET ACCEPTANCE CAPITAL CORPORATION+ 10,965,355
870,000 CONVERGYS CORPORATION+ 13,676,400
240,100 ELECTRONIC DATA SYSTEMS CORPORATION 4,456,256
135,000 ELECTRONICS FOR IMAGING INCORPORATED+ 1,946,700
170,000 FAIR ISAAC CORPORATION<< 4,210,900
654,000 HLTH CORPORATION+<< 7,272,480
733,000 MIDWAY GAMES INCORPORATED+<< 1,883,810
141,000 MONSTER WORLDWIDE INCORPORATED+ 3,430,530
267,000 WEBMD HEALTH CORPORATION+<< 8,370,450
56,212,881
-----------
CHEMICALS & ALLIED PRODUCTS: 0.28%
125,000 NOVEN PHARMACEUTICALS INCORPORATED+ 1,137,500
-----------
COMMUNICATIONS: 1.97%
965,000 MASTEC INCORPORATED+ 7,903,350
-----------
CONSTRUCTION SPECIAL TRADE CONTRACTORS: 0.64%
190,000 COMFORT SYSTEMS USA INCORPORATED 2,584,000
-----------
DEPOSITORY INSTITUTIONS: 9.16%
94,000 AMCORE FINANCIAL INCORPORATED<< 1,169,360
95,300 ANCHOR BANCORP WISCONSIN INCORPORATED 1,447,607
49,400 BOSTON PRIVATE FINANCIAL HOLDINGS INCORPORATED 459,420
24,000 CENTRAL PACIFIC FINANCIAL CORPORATION<< 440,640
44,900 COMMUNITY TRUST BANCORP 1,349,694
163,700 FIRST COMMONWEALTH FINANCIAL CORPORATION<< 2,038,065
24,100 FIRST COMMUNITY BANCORP 517,909
22,340 FIRST FINANCIAL BANCORP<< 293,101
38,000 FIRST MIDWEST BANCORP INCORPORATED 970,140
66,000 FIRSTMERIT CORPORATION 1,354,320
45,710 INTERNATIONAL BANCSHARES CORPORATION 1,142,293
312,000 MARSHALL & ILSLEY CORPORATION 7,793,760
62,933 NATIONAL PENN BANCSHARES INCORPORATED<< 1,050,352
3,800 NBT BANCORP INCORPORATED 86,564
127,000 OLD NATIONAL BANCORP<< 2,172,970
53,000 PACIFIC CAPITAL BANCORP<< 1,080,140
52,700 PROVIDENT BANKSHARES CORPORATION<< 675,087
164,841 STERLING FINANCIAL CORPORATION 2,012,709
88,900 SUSQUEHANNA BANCSHARES INCORPORATED 1,768,221
26,200 UMB FINANCIAL CORPORATION 1,300,568
162,000 UMPQUA HOLDINGS CORPORATION<< 2,389,500
52,600 UNITED COMMUNITY BANKS INCORPORATED<< 722,198
45,900 VALLEY NATIONAL BANCORP<< 880,821
60,400 WEBSTER FINANCIAL CORPORATION 1,573,420
64,200 WILMINGTON TRUST CORPORATION 2,110,896
36,799,755
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 41
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ------------ ----------------------------------------------------------------------- -----------
EATING & DRINKING PLACES: 1.71%
167,800 CEC ENTERTAINMENT INCORPORATED+ $ 6,242,160
107,000 RUBIO'S RESTAURANTS INCORPORATED+ 642,000
6,884,160
-----------
EDUCATIONAL SERVICES: 0.15%
54,400 CORINTHIAN COLLEGES INCORPORATED+<< 617,440
-----------
ELECTRIC, GAS & SANITARY SERVICES: 5.06%
139,800 CLEAN HARBORS INCORPORATED+ 9,222,606
620,000 NISOURCE INCORPORATED 11,098,000
20,320,606
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 7.23%
504,500 ARRIS GROUP INCORPORATED+ 4,086,450
135,000 EXAR CORPORATION+ 1,138,050
270,000 MAXIM INTEGRATED PRODUCTS INCORPORATED 5,678,100
568,000 MERCURY COMPUTER SYSTEMS INCORPORATED+<< 4,555,360
525,000 MOLEX INCORPORATED CLASS A 13,608,000
29,065,960
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 3.58%
330,000 CRA INTERNATIONAL INCORPORATED+<< 11,378,400
282,300 SYMYX TECHNOLOGIES INCORPORATED+<< 2,120,073
11,100 TEJON RANCH COMPANY+<< 469,086
60,000 TRIMERIS INCORPORATED+<< 419,400
14,386,959
-----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT: 0.76%
31,000 VALMONT INDUSTRIES INCORPORATED<< 3,052,260
-----------
FOOD & KINDRED PRODUCTS: 12.98%
390,000 COCA-COLA ENTERPRISES INCORPORATED 8,775,000
385,000 HERCULES INCORPORATED<< 7,238,000
235,000 THE HERSHEY COMPANY 8,784,300
770,000 TOOTSIE ROLL INDUSTRIES INCORPORATED<< 18,734,100
385,000 UNITED NATURAL FOODS INCORPORATED+<< 7,623,000
712,500 VERMONT PURE HOLDINGS LIMITED+ 990,375
52,144,775
-----------
FOOD STORES: 2.58%
585,000 WINN-DIXIE STORES INCORPORATED+<< 10,372,050
-----------
FOOTWEAR: 0.28%
110,000 CROCS INCORPORATED+<< 1,123,100
-----------
HEALTH SERVICES: 0.44%
2,177,700 HOOPER HOLMES INCORPORATED+ 1,763,937
-----------
HOLDING & OTHER INVESTMENT OFFICES: 3.07%
126,110 APARTMENT INVESTMENT & MANAGEMENT COMPANY CLASS A<< 4,663,548
115,000 EXTERRAN HOLDINGS INCORPORATED+ 7,680,850
12,344,398
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 0.35%
230,600 MTR GAMING GROUP INCORPORATED+<< 1,413,578
-----------
42 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ------------ ------------- ------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 9.70%
1,400,000 ENTEGRIS INCORPORATED+<< $ 10,556,000
1,199,000 INFOCUS CORPORATION+ 2,014,320
580,000 INTERMEC INCORPORATED+<< 12,249,600
13,600 PLANAR SYSTEMS INCORPORATED+ 31,008
991,000 ULTRATECH INCORPORATED+<< 14,131,660
38,982,588
------------
INSURANCE AGENTS, BROKERS & SERVICE: 0.54%
505,100 CRAWFORD & COMPANY CLASS A+ 2,146,675
------------
LEATHER & LEATHER PRODUCTS: 0.27%
74,000 TIMBERLAND COMPANY+ 1,080,400
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 6.54%
219,108 HERLEY INDUSTRIES INCORPORATED+ 2,670,927
333,500 NEWPORT CORPORATION+<< 3,838,585
350,000 PERKINELMER INCORPORATED 9,296,000
180,100 VITAL SIGNS INCORPORATED 9,424,633
31,100 ZOLL MEDICAL CORPORATION+ 1,038,118
26,268,263
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 4.16%
91,000 ARMSTRONG WORLD INDUSTRIES INCORPORATED+ 3,238,690
1,462,400 LEAPFROG ENTERPRISES INCORPORATED+<< 12,152,544
115,000 LYDALL INCORPORATED+ 1,339,750
16,730,984
------------
MISCELLANEOUS RETAIL: 0.25%
78,000 OFFICE DEPOT INCORPORATED+ 989,040
------------
OIL & GAS EXTRACTION: 0.23%
686,700 SYNTROLEUM CORPORATION+<< 933,912
------------
PAPER & ALLIED PRODUCTS: 0.66%
307,000 BUCKEYE TECHNOLOGIES INCORPORATED+<< 2,649,410
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 3.12%
1,500,000 PLAYBOY ENTERPRISES INCORPORATED CLASS B+<<** 12,540,000
------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS: 0.61%
97,000 SEALED AIR CORPORATION 2,453,130
------------
TRANSPORTATION EQUIPMENT: 3.40%
627,800 FEDERAL SIGNAL CORPORATION 8,713,864
170,000 SPIRIT AEROSYSTEMS HOLDINGS INCORPORATED+ 4,958,900
13,672,764
------------
WHOLESALE TRADE NON-DURABLE GOODS: 0.60%
125,000 KENNETH COLE PRODUCTIONS INCORPORATED CLASS A<< 2,406,249
------------
TOTAL COMMON STOCKS (COST $431,386,760) 381,662,768
------------
COLLATERAL FOR SECURITIES LENDING: 11.21%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.66%
380,287 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 380,287
465,047 BLACKROCKTEMPORARY #24 MONEY MARKET FUND 465,047
Wells Fargo Advantage Small and Mid Cap Stock Funds 43
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ ----------
COLLATERAL INVESTED IN MONEY MARKET FUNDS (continued)
985,435 DAILY ASSETS FUND INSTITUTIONAL $ 985,435
817,540 DREYFUS CASH MANAGEMENT FUND 817,540
2,648,309
----------
PRINCIPAL INTEREST RATE MATURITY DATE
- ---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 10.55%
$ 439,290 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 439,087
151,318 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 151,084
474,909 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 474,066
356,181 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 356,069
281,383 APRECO LLC++ 2.94 05/28/2008 280,769
996,121 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 996,121
237,454 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 237,227
296,818 BANCO SANTANDER TOTTA LOAN++ +/- 2.73 10/15/2008 296,552
812,486 BANK OF AMERICA REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $812,531) 2.00 05/01/2008 812,486
906,102 BANK OF AMERICA REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $906,164) 2.47 05/01/2008 906,102
296,818 BANK OF IRELAND++ +/- 3.06 10/14/2008 296,664
474,909 BANK OF SCOTLAND PLC 2.80 05/29/2008 473,878
3,187,029 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $3,187,206) 2.00 05/01/2008 3,187,029
237,454 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 236,960
243,925 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 243,385
237,454 CHARIOT FUNDING LLC++ 2.70 05/14/2008 237,223
237,454 CHARIOT FUNDING LLC++ 2.76 05/29/2008 236,946
629,777 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.40 02/25/2008 453,439
484,349 CHEYNE FINANCE LLC++ +/- @@(A)(I) 6.48 05/19/2008 348,731
151,318 CIESCO LLC++ 2.90 05/21/2008 151,087
350,245 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 349,356
1,188,459 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 1,188,459
890,454 CULLINAN FINANCE CORPORATION++ +/- 2.51 08/04/2008 888,460
3,187,029 DEUTSCHE BANK REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $3,187,206) 2.00 05/01/2008 3,187,029
474,909 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 474,091
833,465 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 833,196
237,454 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 237,258
237,454 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 236,965
1,187,272 FIVE FINANCE INCORPORATED++ +/- 2.66 07/09/2008 1,182,875
949,817 GALLEON CAPITAL LLC++ 2.90 05/21/2008 948,287
984,248 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 983,852
1,187,272 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 1,185,586
771,727 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 771,727
534,272 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 533,950
856,545 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 856,212
593,636 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 593,636
593,636 LINKS FINANCE LLC++ +/- 2.52 08/15/2008 590,545
949,817 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE
AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $949,880) 2.40 05/01/2008 949,817
44 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP DISCIPLINED FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ------------------------------------------------------ ------------- ------------- -----------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 249,838 MONT BLANC CAPITAL CORPORATION++ 2.80% 05/16/2008 $ 249,546
237,454 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 236,957
54,911 MORGAN STANLEY+/- 2.84 10/15/2008 54,868
1,086,353 MORGAN STANLEY REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $1,086,426) 2.41 05/01/2008 1,086,353
538,250 MORGAN STANLEY REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $538,280) 2.00 05/01/2008 538,250
474,909 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 474,340
593,636 NORTHERN ROCK PLC++ +/- 2.79 10/03/2008 590,465
546,145 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 546,102
346,137 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 345,370
566,922 PICAROS FUNDING LLC++ 2.60 05/06/2008 566,717
237,454 PRUDENTIAL PLC++ 2.88 05/28/2008 236,943
949,817 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 949,741
485,000 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 484,240
474,909 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 474,044
166,218 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 166,143
296,818 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 296,348
237,454 SLM CORPORATION++ +/- 2.73 05/12/2008 237,332
1,234,762 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 1,234,279
368,054 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.27 04/03/2008 328,157
593,636 STANFIELD VICTORIA FUNDING LLC++ +/- @@(A)(I) 5.47 02/15/2008 529,286
237,454 SWEDBANK MORTGAGE AB 2.95 05/27/2008 236,950
415,545 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 415,282
541,372 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 540,740
296,818 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 296,132
1,780,907 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 1,779,953
296,818 UNICREDITO ITALIANO BANK (IRELAND)++ +/- 2.74 10/14/2008 296,634
296,818 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB++ +/- 2.76 10/08/2008 296,659
510,527 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.60 07/28/2008 455,186
296,818 VICTORIA FINANCE LLC++ +/- @@(A)(I) 2.84 08/07/2008 264,643
593,636 WHITE PINE FINANCE LLC++ +/- @@(A)(I) 5.43 02/22/2008 544,364
831,090 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 830,821
42,389,051
-----------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $45,516,701) 45,037,360
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 45
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP DISCIPLINED FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ ------------
SHORT-TERM INVESTMENTS: 5.13%
20,623,170 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ $ 20,623,170
------------
TOTAL SHORT-TERM INVESTMENTS (COST $20,623,170) 20,623,170
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $497,526,631)* 111.32% $447,323,298
OTHER ASSETS AND LIABILITIES, NET (11.32) (45,486,089)
------ ------------
TOTAL NET ASSETS 100.00% $401,837,209
------------
- ----------
+ Non-income earning securities.
** Represents an affiliate of the Fund under section 2(a)(2) and 2(a)(3) of
the Investment Company Act of 1940, as Fund holds 5% or more of the
issuer's outstanding voting shares.
<< All or a portion of this security is on loan. (See Note 2)
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(i) Illiquid security.
~ 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.
++ Short-term security of an affiliate of the Fund with a cost of $20,623,170.
* 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 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL/MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------- ------------
COMMON STOCKS: 97.80%
AMUSEMENT & RECREATION SERVICES: 0.51%
285,560 CENTURY CASINOS INCORPORATED+ $ 948,059
-----------
APPAREL & ACCESSORY STORES: 0.23%
172,320 DELIA*S INCORPORATED+ 437,693
-----------
BIOPHARMACEUTICALS: 2.29%
2,127,347 ENCORIUM GROUP INCORPORATED+** 4,254,694
-----------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS: 1.03%
222,787 PALM HARBOR HOMES INCORPORATED+ 1,918,196
-----------
BUSINESS SERVICES: 12.14%
995,080 3COM CORPORATION+ 2,378,241
91,010 ABM INDUSTRIES INCORPORATED 1,905,749
68,550 CLARUS CORPORATION+ 416,784
46,870 HEALTHCARE SERVICES GROUP 715,236
739,890 HILL INTERNATIONAL INCORPORATED+ 10,691,411
63,220 HLTH CORPORATION+ 703,006
57,905 IMS HEALTH INCORPORATED 1,433,149
70,340 RHAPSODY ACQUISITION CORPORATION+ 562,720
77,482 SUN MICROSYSTEMS INCORPORATED+ 1,213,368
329,440 TIER TECHNOLOGIES INCORPORATED CLASS B+ 2,556,454
22,576,118
-----------
CHEMICALS & ALLIED PRODUCTS: 1.53%
12,265 ENDO PHARMACEUTICALS HOLDINGS INCORPORATED+ 304,540
8,245 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 376,054
285,757 ORASURE TECHNOLOGIES INCORPORATED+ 1,845,990
89,110 VANDA PHARMACEUTICALS INCORPORATED+ 314,558
COMMUNICATIONS: 1.07% 2,841,142
-----------
150,730 CHINA GRENTECH CORPORATION LIMITED ADR+ 712,953
169,760 CINCINNATI BELL INCORPORATED+ 787,686
362,965 CITADEL BROADCASTING CORPORATION+ 493,632
CONSTRUCTION SPECIAL TRADE CONTRACTORS: 3.05% 1,994,271
-----------
525,855 CHAMPION ENTERPRISES INCORPORATED+ 5,426,824
63,775 U.S. HOME SYSTEMS INCORPORATED+ 239,156
DEPOSITORY INSTITUTIONS: 1.86% 5,665,980
-----------
141,729 FIRST SECURITY GROUP INCORPORATED 1,299,655
43,565 MIDWEST BANC HOLDINGS INCORPORATED 447,848
100,030 PACIFIC PREMIER BANCORP INCORPORATED+ 755,227
41,735 WESTERN UNION COMPANY 959,905
ELECTRIC, GAS & SANITARY SERVICES: 0.87% 3,462,635
-----------
94,380 EL PASO CORPORATION 1,617,673
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 47
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL/MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------- ------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 6.24%
457,149 EVANS & SUTHERLAND COMPUTER CORPORATION+ $ 489,149
143,570 GLOBECOMM SYSTEMS INCORPORATED+ 1,274,902
80,879 INTEGRATED ELECTRICAL SERVICES INCORPORATED+ 1,353,106
175,360 MICRON TECHNOLOGY INCORPORATED+ 1,353,779
1,573,738 MRV COMMUNICATIONS INCORPORATED+ 2,470,769
80,391 NORTEL NETWORKS CORPORATION ADR+ 686,539
78,015 OSI SYSTEMS INCORPORATED+ 1,907,467
331,050 POWER-ONE INCORPORATED+ 989,840
165,198 RICHARDSON ELECTRONICS LIMITED 1,073,787
11,599,338
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 0.67%
166,605 SYMYX TECHNOLOGIES INCORPORATED+ 1,251,204
-----------
FINANCIAL SERVICES: 0.26%
13,845 KBW REGIONAL BANKING ETF 481,944
-----------
FURNITURE & FIXTURES: 0.59%
80,865 FURNITURE BRANDS INTERNATIONAL INCORPORATED 1,095,721
-----------
HEALTH SERVICES: 1.04%
161,440 CROSS COUNTRY HEALTHCARE INCORPORATED+ 1,930,822
-----------
HOLDING & OTHER INVESTMENT OFFICES: 7.14%
285,608 ANNALY MORTGAGE MANAGEMENT INCORPORATED# 4,786,790
273,820 ANWORTH MORTGAGE ASSET CORPORATION 1,829,118
148,665 CAPSTEAD MORTGAGE CORPORATION 1,917,779
48,391 DISCOVERY HOLDING COMPANY CLASS A+ 1,120,736
102,796 HILLTOP HOLDINGS INCORPORATED+ 1,085,526
60,790 SUN COMMUNITIES INCORPORATED 1,182,366
135,065 UMH PROPERTIES INCORPORATED 1,357,403
13,279,718
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 0.14%
93,605 EMPIRE RESORTS INCORPORATED+ 251,797
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 3.91%
200,100 BROCADE COMMUNICATIONS SYSTEMS INCORPORATED+ 1,432,716
167,485 CRAY INCORPORATED+ 1,043,433
167,445 INTERMEC INCORPORATED+ 3,536,438
40,100 LEXMARK INTERNATIONAL INCORPORATED+ 1,258,739
INSURANCE CARRIERS: 2.79% 7,271,326
31,430 MERCURY GENERAL CORPORATION 1,568,043
172,684 NORTH POINTE HOLDINGS CORPORATION+ 2,752,583
500,044 QUANTA CAPITAL HOLDINGS LIMITED+ 865,076
JUSTICE, PUBLIC ORDER & SAFETY: 1.65% 5,185,702
-----------
115,912 GEO GROUP INCORPORATED+ 3,065,872
-----------
LEATHER & LEATHER PRODUCTS: 0.19%
195,165 BAKERS FOOTWEAR GROUP INCORPORATED+ 349,345
-----------
48 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL/MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------------------------------- ------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 2.65%
513,486 ALLIED HEALTHCARE PRODUCTS INCORPORATED+** $ 3,219,557
265,240 CREDENCE SYSTEMS CORPORATION+ 275,850
17,755 HAEMONETICS CORPORATION+ 1,016,119
14,255 KENSEY NASH CORPORATION+ 415,676
METAL MINING: 13.42% 4,927,202
-----------
17,400 AGNICO-EAGLE MINES LIMITED 1,086,630
253,070 APEX SILVER MINES LIMITED+ 2,543,354
203,215 GOLDCORP INCORPORATED 7,258,840
58,755 NEWMONT MINING CORPORATION 2,597,559
163,550 NOVAGOLD RESOURCES INCORPORATED+ 1,200,457
263,725 PETAQUILLA MINERALS LIMITED+ 514,264
200,240 RANDGOLD RESOURCES LIMITED ADR 9,114,925
49,790 YAMANA GOLD INCORPORATED 638,308
24,954,337
-----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS: 0.14%
544,480 BIRCH MOUNTAIN RESOURCES LIMITED+ 266,795
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 0.52%
69,740 ACCO BRANDS CORPORATION+ 970,781
-----------
OIL & GAS EXTRACTION: 24.31%
25,750 CANADIAN NATURAL RESOURCES LIMITED 2,188,750
14,570 ENERGY XXI BERMUDA LIMITED+ 75,545
320,985 GLOBAL INDUSTRIES LIMITED+ 5,122,921
103,970 HELIX ENERGY SOLUTIONS GROUP INCORPORATED+ 3,592,164
56,585 HELMERICH & PAYNE INCORPORATED 3,041,444
28,170 HERCULES OFFSHORE INCORPORATED+ 742,561
181,485 KEY ENERGY SERVICES INCORPORATED+ 2,486,345
218,065 MCMORAN EXPLORATION COMPANY+ 5,979,342
17,725 NEWFIELD EXPLORATION COMPANY+ 1,076,971
631,660 NEWPARK RESOURCES INCORPORATED+ 3,467,813
28,780 PENN WEST ENERGY TRUST 868,293
43,155 PETROQUEST ENERGY INCORPORATED+ 896,761
37,910 PIONEER NATURAL RESOURCES COMPANY 2,188,544
42,360 PRIDE INTERNATIONAL INCORPORATED+ 1,798,182
41,057 RANGE RESOURCES CORPORATION 2,725,364
16,575 SANDRIDGE ENERGY INCORPORATED+ 748,859
310,680 TRILOGY ENERGY TRUST 3,609,330
127,475 WILLBROS GROUP INCORPORATED+ 4,600,573
45,209,762
-----------
PETROLEUM REFINING & RELATED INDUSTRIES: 1.06%
104,330 INTEROIL CORPORATION+# 1,970,794
-----------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 1.14%
25,285 E.W. SCRIPPS COMPANY CLASS A 1,135,549
66,665 JOURNAL COMMUNICATIONS INCORPORATED CLASS A 383,990
126,255 R.H. DONNELLEY CORPORATION+ 604,761
REAL ESTATE: 0.48% 2,124,300
-----------
35,150 HATTERAS FINANCIAL CORPORATION+ 888,592
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 49
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL/MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
- ---------- ------------------------------------------------------ ------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS: 1.11%
207,505 CONSTAR INTERNATIONAL INCORPORATED+ $ 607,990
619,991 INTERTAPE POLYMER GROUP INCORPORATED+ 1,456,978
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 0.02% 2,064,968
------------
3,590 MARKETAXESS HOLDINGS INCORPORATED+ 31,556
------------
SOCIAL SERVICES: 0.61%
37,005 ABB LIMITED ADR 1,134,943
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 2.04%
202,700 GENTEX CORPORATION 3,786,436
------------
THEATERS & ENTERTAINMENT: 0.62%
61,070 REGAL ENTERTAINMENT GROUP CLASS A 1,157,887
------------
TRANSPORTATION EQUIPMENT: 0.48%
260,580 FLEETWOOD ENTERPRISES INCORPORATED+ 898,998
------------
TOTAL COMMON STOCKS (COST $181,547,573) 181,866,601
------------
EXPIRATION DATE
---------------
WARRANTS: 0.29%
191,735 RHAPSODY ACQUISITION WARRANT+ 10/02/2010 536,858
TOTAL WARRANTS (COST $451,776) 536,858
------------
SHORT-TERM INVESTMENTS: 2.20%
4,088,244 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~++ 4,088,244
------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,088,244) 4,088,244
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $186,087,593)* 100.29% $186,491,703
OTHER ASSETS AND LIABILITIES, NET (0.29) (532,440)
------ ------------
TOTAL NET ASSETS 100.00% $185,959,263
------ ------------
STRIKE EXPIRATION
CONTRACTS SECURITY NAME PRICE DATE VALUE
- ---------- -------------------------------- ------ ---------- ------------
WRITTEN OPTIONS: (0.02%)
(300) ANNALY CAPITAL MANAGEMENT
INCORPORATED CALL $17.50 07/19/2008 (19,500)
(100) INTEROIL CORPORATION CALL 30.00 09/20/2008 (12,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(46,900)) (31,500)
------------
- ----------
+ Non-income earning securities.
** Represents an affiliate of the Fund under section 2(a)(2) and 2(a)(3) of
the Investment Company Act of 1940, as Fund holds 5% or more of 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.
++ Short-term security of an affiliate of the Fund with a cost of $4,088,244.
# All or a portion of the security is segregated as collateral for derivative
instruments. (See Note 2).
* 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.
50 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Assets and Liabilities--April 30, 2008 (Unaudited)
DISCOVERY ENTERPRISE
FUND FUND
------------ ------------
ASSETS
Investments
In securities, at market value (including securities on loan) ....... $367,753,943 $321,118,620
Collateral received for securities loaned (Note 2) .................. 68,372,970 39,312,772
Investments in affiliates ........................................... 4,867,385 3,055,550
------------ ------------
Total investments at market value (see cost below) .................. 440,994,298 363,486,942
------------ ------------
Cash ................................................................ 0 0
Receivable for Fund shares issued ................................... 477,101 487,917
Receivable for investments sold ..................................... 8,702,103 34,109,829
Receivables for dividends and interest .............................. 75,533 199,467
Receivable for interest rate swaps/spread locks ..................... 0 0
------------ ------------
Total assets ........................................................ 450,249,035 398,284,155
------------ ------------
LIABILITIES
Option written, at value ............................................ 0 0
Payable for Fund shares redeemed .................................... 44,483 33,493
Payable for investments purchased ................................... 2,315,362 20,928,567
Payable to investment advisor and affiliates (Note 3) ............... 292,518 225,598
Payable upon receipt of securities loaned (Note 2) .................. 69,295,759 39,966,258
Accrued expenses and other liabilities .............................. 87,731 92,625
------------ ------------
Total liabilities ................................................... 72,035,853 61,246,541
------------ ------------
TOTAL NET ASSETS .................................................... $378,213,182 $337,037,614
------------ ------------
NET ASSETS CONSIST OF
Paid-in capital ..................................................... $355,030,901 $498,221,333
Undistributed net investment income (loss) .......................... (1,351,413) (887,432)
Undistributed net realized gain (loss) on investments ............... (26,023,654) 181,037,523)
Net unrealized appreciation (depreciation) of investments,
foreign currencies and translation of assets and liabilities
denominated in foreign currencies ................................ 50,557,348 20,741,236
Net unrealized appreciation (depreciation) of options, swap
agreements, and short sales ......................................... 0 0
------------ ------------
TOTAL NET ASSETS .................................................... $378,213,182 $337,037,614
------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
Net assets - Class A ................................................ $ 2,167,474 NA
Shares outstanding - Class A ........................................ 103,913 NA
Net asset value per share - Class A ................................. $ 20.86 NA
Maximum offering price per share - Class A2 ......................... $ 22.13 NA
Net assets - Class C ................................................ $ 1,257,934 $ 11,010
Shares outstanding - Class C ........................................ 60,740 326
Net asset value and offering price per share - Class C .............. $ 20.71 $ 33.77
Net assets - Administrator Class .................................... $106,827,205 $ 17,917,480
Shares outstanding - Administrator Class ............................ 5,081,192 514,449
Net asset value and offering price per share - Administrator Class .. $ 21.02 $ 34.83
Net assets - Advisor Class .......................................... NA $ 1,166,617
Shares outstanding - Advisor Class .................................. NA 34,216
Net asset value and offering price per share - Advisor Class ........ NA $ 34.10
Net assets - Institutional Class .................................... $ 9,410,564 $137,481,597
Shares outstanding - Institutional Class ............................ 445,662 3,922,451
Net asset value and offering price per share - Institutional Class .. $ 21.12 $ 35.05
Net assets - Investor Class ......................................... $258,550,005 $180,460,910
Shares outstanding - Investor Class ................................. 12,421,013 5,342,270
Net asset value and offering price per share - Investor Class ....... $ 20.82 $ 33.78
------------ ------------
Investments at cost ................................................. $390,436,950 $342,745,706
------------ ------------
Securities on loan, at market value (Note 2) ........................ $ 68,024,423 $ 38,923,338
------------ ------------
Premiums received on written options (Note 2) ....................... $ 0 $ 0
------------ ------------
- ----------
(1) Each Fund has an unlimited number of authorized shares.
(2) Maximum offering price is computed as 100/94.25 of net asset value. On
investments of $50,000 or more, the offering price is reduced.
(3) Difference in NAV recalculation and NAV stated is caused by rounding
differences.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 51
Statements of Assets and Liabilities-April 30, 2008 (Unaudited)
MID CAP SMALL CAP SMALL/MID
DISCIPLINED OPPORTUNITY DISCIPLINED CAP VALUE
FUND FUND FUND FUND
------------ -------------- ------------ ------------
ASSETS
Investments
In securities, at market value (including securities on loan) ....... $728,239,942 $1,423,468,928 $381,662,768 $182,403,459
Collateral received for securities loaned (Note 2) .................. 117,068,879 256,994,882 45,037,360 0
Investments in affiliates ........................................... 112,945,291 204,279,134 20,623,170 4,088,244
------------ -------------- ------------ ------------
Total investments at market value (see cost below) .................. 958,254,112 1,884,742,944 447,323,298 186,491,703
------------ -------------- ------------ ------------
Cash ................................................................ 1,705 0 3,160 0
Receivable for Fund shares issued ................................... 340,711 71,203 625,764 224,986
Receivable for investments sold ..................................... 26,176,027 15,422,346 0 93,413
Receivables for dividends and interest .............................. 1,010,616 1,623,236 308,410 102,152
Receivable for interest rate swaps/spread locks ..................... 0 225,442 0 0
------------ -------------- ------------ ------------
Total assets ........................................................ 985,783,171 1,902,085,171 448,260,632 186,912,254
------------ -------------- ------------ ------------
LIABILITIES
Option written, at value ............................................ 1,879,850 0 0 31,500
Payable for Fund shares redeemed .................................... 166,437 288,080 343,604 43,460
Payable for investments purchased ................................... 0 4,278,961 0 668,629
Payable to investment advisor and affiliates (Note 3) ............... 645,366 1,380,706 354,640 172,692
Payable upon receipt of securities loaned (Note 2) .................. 118,318,558 259,834,320 45,516,701 0
Accrued expenses and other liabilities .............................. 357,100 573,995 208,478 36,710
------------ -------------- ------------ ------------
Total liabilities ................................................... 121,367,311 266,356,062 46,423,423 952,991
------------ -------------- ------------ ------------
TOTAL NET ASSETS .................................................... $864,415,860 $1,635,729,109 $401,837,209 $185,959,263
------------ -------------- ------------ ------------
NET ASSETS CONSIST OF
Paid-in capital ..................................................... $883,711,306 $1,421,063,944 $453,951,085 $190,950,626
Undistributed net investment income (loss) .......................... 2,840,828 (3,563,095) (2,465,180) (1,256,654)
Undistributed net realized gain (loss) on investments ............... (9,514,792) 84,731,485 554,637 (4,154,399)
Net unrealized appreciation (depreciation) of investments, foreign
currencies and translation of assets and liabilities
denominated in foreign currencies ................................ (12,975,914) 133,271,333 (50,203,333) 404,290
Net unrealized appreciation (depreciation) of options, swap
agreements, and short sales ...................................... 354,432 225,442 0 15,400
------------ -------------- ------------ ------------
TOTAL NET ASSETS .................................................... $864,415,860 $1,635,729,109 $401,837,209 $185,959,263
------------ -------------- ------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
Net assets - Class A ................................................ $ 498,106 NA $ 20,883 $ 8,196,178
Shares outstanding - Class A ........................................ 25,357 NA 1,437 566,603
Net asset value per share - Class A ................................. $ 19.64 NA $ 14.53 $ 14.47
Maximum offering price per share - Class A2 ......................... $ 20.84 NA $ 15.42 $ 15.35
Net assets - Class C ................................................ $ 20,169 $ 10,698 $ 10,585 $ 2,155,818
Shares outstanding - Class C ........................................ 1,028 298 735 149,473
Net asset value and offering price per share - Class C .............. $ 19.61(3) $ 35.90 $ 14.41(3) $ 14.42
Net assets - Administrator Class .................................... $110,072,190 $ 145,925,225 $ 10,432,695 $ 38,685,421
Shares outstanding - Administrator Class ............................ 5,573,362 4,011,000 717,690 2,638,929
Net asset value and offering price per share - Administrator Class .. $ 19.75 $ 36.38 $ 14.54 $ 14.66
Net assets - Advisor Class .......................................... NA $ 35,609,210 NA NA
Shares outstanding - Advisor Class .................................. NA 1,013,982 NA NA
Net asset value and offering price per share - Advisor Class ........ NA $ 35.12 NA NA
Net assets - Institutional Class .................................... $152,324,416 NA $ 91,956,435 $ 7,256,207
Shares outstanding - Institutional Class ............................ 7,690,937 NA 6,301,684 494,380
Net asset value and offering price per share - Institutional Class .. $ 19.81 NA $ 14.59 $ 14.68
Net assets - Investor Class ......................................... $601,500,979 $1,454,183,976 $299,416,611 $129,665,639
Shares outstanding - Investor Class ................................. 30,461,570 40,481,494 20,771,308 8,930,060
Net asset value and offering price per share - Investor Class ....... $ 19.75 $ 35.92 $ 14.41 $ 14.52
------------ -------------- ------------ ------------
Investments at cost ................................................. $971,230,026 $1,751,471,611 $497,526,631 $186,087,593
------------ -------------- ------------ ------------
Securities on loan, at market value (Note 2) ........................ $113,107,930 $ 251,884,131 $ 43,557,779 $ 0
------------ -------------- ------------ ------------
Premiums received on written options (Note 2) ....................... $ 2,234,282 $ 0 $ 0 $ 46,900
------------ -------------- ------------ ------------
52 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Operations--For the Six Months Ended April 30, 2008 (Unaudited)
Discovery Enterprise
Fund Fund(2)
------------ ------------
INVESTMENT INCOME
Dividends(1) ....................................................... $ 587,690 $ 750,038
Interest ........................................................... 331 172
Interest from affiliated securities ................................ 449,762 270,847
Securities lending income, net ..................................... 122,641 67,271
------------ ------------
Total investment income ............................................... 1,160,424 1,088,328
------------ ------------
EXPENSES
Advisory fees ...................................................... 1,442,272 1,155,178
Administration fees
Fund Level ...................................................... 96,152 77,012
Class A ......................................................... 1,694 NA
Class C ......................................................... 1,267 2
Administrator Class ............................................. 54,951 2,790
Advisor Class ................................................... NA 1,958
Institutional Class ............................................. 3,420 48,539
Investor Class .................................................. 573,396 390,034
Custody fees ....................................................... 38,461 30,805
Shareholder servicing fees (Note 3) ................................ 462,715 232,726
Accounting fees .................................................... 23,465 22,831
Distribution fees (Note 3)
Class C ......................................................... 3,394 7
Professional fees .................................................. 5,576 6,081
Registration fees .................................................. 36,965 25,558
Shareholder reports ................................................ 81,687 97,301
Trustees' fees ..................................................... 4,323 4,323
Other fees and expenses ............................................ 6,182 3,758
------------ ------------
Total expenses ........................................................ 2,835,920 2,098,903
------------ ------------
LESS
Waived fees and reimbursed expenses (Note 3) ....................... (324,083) (123,143)
Net expenses ....................................................... 2,511,837 1,975,760
------------ ------------
Net investment income (loss) .......................................... (1,351,413) (887,432)
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Securities, foreign currencies and foreign currency translation .... (24,895,485) 5,430,401
Options, swap agreements and short sale transactions ............... 0 0
------------ ------------
Net realized gain and loss from investments ........................... (24,895,485) 5,430,401
------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Securities, foreign currencies and foreign currency translation .... (29,107,507) (39,026,041)
Options, swap agreements and short sale transactions ............... 0 0
------------ ------------
Net change in unrealized appreciation (depreciation) of investments ... (29,107,507) (39,026,041)
------------ ------------
Net realized and unrealized gain (loss) on investments ................ (54,002,992) (33,595,640)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ....... $(55,354,405) $(34,483,072)
============ ============
(1) Net of foreign withholding taxes of .............................. $ 33 $ 2,886
(2) Classes A and C in Small Cap Disciplined Fund and Class C in Enterprise and
Opportunity Funds originated on March 31, 2008. Expenses presented for
these classes are for the one-month period from March 31, 2008 to April 30,
2008.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 53
Statements of Operations--For the Six Months Ended April 30, 2008 (Unaudited)
Mid Cap Small Cap Small/Mid
Disciplined Opportunity Disciplined Cap Value
Fund Fund(2) Fund(2) Fund
------------ ------------- ------------ ------------
INVESTMENT INCOME
Dividends(1) ....................................................... $ 8,737,626 $ 7,016,029 $ 3,070,208 $ 1,847,965
Interest ........................................................... 1,448 230,823 23,206 17,455
Interest from affiliated securities ................................ 760,675 3,147,647 323,912 40,862
Securities lending income, net ..................................... 138,896 385,299 160,270 0
------------ ------------- ------------ ------------
Total investment income ............................................... 9,638,645 10,779,798 3,577,596 1,906,282
------------ ------------- ------------ ------------
EXPENSES
Advisory fees ...................................................... 3,294,556 5,758,628 1,844,094 816,041
Administration fees
Fund Level ...................................................... 226,599 414,283 104,260 46,177
Class A ......................................................... 401 NA 4 4,490
Class C ......................................................... 15 2 2 928
Administrator Class ............................................. 52,805 69,778 5,172 17,799
Advisor Class ................................................... NA 52,052 NA NA
Institutional Class ............................................. 58,628 NA 37,254 2,734
Investor Class .................................................. 1,421,643 3,211,297 681,181 300,613
Custody fees ....................................................... 90,640 165,713 41,704 18,471
Shareholder servicing fees (Note 3) ................................ 881,876 2,063,757 356,974 160,875
Accounting fees .................................................... 39,061 60,602 25,450 22,368
Distribution fees (Note 3)
Class C ......................................................... 40 6 6 2,486
Professional fees .................................................. 6,641 27,766 6,061 5,583
Registration fees .................................................. 110,801 24,598 16,064 30,688
Shareholder reports ................................................ 256,136 358,840 153,522 76,652
Trustees' fees ..................................................... 4,323 4,323 4,323 4,323
Other fees and expenses ............................................ 15,950 19,690 8,424 5,379
------------ ------------- ------------ ------------
Total expenses ........................................................ 6,460,115 12,231,335 3,284,495 1,515,607
------------ ------------- ------------ ------------
LESS
Waived fees and reimbursed expenses (Note 3) ....................... (907,799) (1,273,156) (420,706) (217,327)
Net expenses ....................................................... 5,552,316 10,958,179 2,863,789 1,298,280
------------ ------------- ------------ ------------
Net investment income (loss) .......................................... 4,086,329 (178,381) 713,807 608,002
------------ ------------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Securities, foreign currencies and foreign currency translation .... (4,490,972) 104,272,003 628,062 (342,321)
Options, swap agreements and short sale transactions ............... (4,699,560) (5,831,680) 0 (84,257)
------------ ------------- ------------ ------------
Net realized gain and loss from investments ........................... (9,190,532) 98,440,323 628,062 (426,578)
------------ ------------- ------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Securities, foreign currencies and foreign currency translation .... (63,344,756) (235,186,019) (64,978,079) (24,919,495)
Options, swap agreements and short sale transactions ............... 354,432 (3,230,939) 0 60,352
------------ ------------- ------------ ------------
Net change in unrealized appreciation (depreciation) of investments ... (62,990,324) (238,416,958) (64,978,079) (24,859,143)
------------ ------------- ------------ ------------
Net realized and unrealized gain (loss) on investments ................ (72,180,856) (139,976,635) (64,350,017) (25,285,721)
------------ ------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ....... $(68,094,527) $(140,155,016) $(63,636,210) $(24,677,719)
============ ============= ============ ============
(1) Net of foreign withholding taxes of .............................. $ 3,695 $ 20,382 $ 0 $ 37,690
54 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, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .................................. $439,275,699 $286,571,127
OPERATIONS
Net investment income (loss) .......................... (1,351,413) (2,827,956)
Net realized gain (loss) on investments ............... (24,895,485) 68,175,362
Net change in unrealized appreciation (depreciation) of
investments ........................................ (29,107,507) 32,593,454
------------ ------------
Net increase (decrease) in net assets resulting from
operations ............................................ (55,354,405) 97,940,860
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ............................................ 0 0
Class C ............................................ 0 0
Administrator Class ................................ 0 0
Institutional Class ................................ 0 0
Investor Class ..................................... 0 0
Net realized gain on sales of investments
Class A ............................................ (44,994) 0
Class C ............................................ (131,195) 0
Administrator Class ................................ (18,185,186) (3,584,326)
Institutional Class ................................ (1,621,291) (544)
Investor Class ..................................... (44,174,693) (11,345,682)
------------ ------------
Total distributions to shareholders ...................... (64,157,359) (14,930,552)
------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ................... 2,078,036 209,623
Reinvestment of distributions - Class A ............... 43,836 0
Cost of shares redeemed - Class A ..................... (86,922) 0
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions - Class A ............... 2,034,950 209,623
------------ ------------
Proceeds from shares sold - Class C ................... 1,029,549 351,677
Reinvestment of distributions - Class C ............... 122,395 0
Cost of shares redeemed - Class C ..................... (34,346) 0
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions - Class C ............... 1,117,598 351,677
------------ ------------
Proceeds from shares sold - Administrator Class ....... 22,252,635 69,855,012
Proceeds from redemption fees - Administrator Class ... 0 0
Reinvestment of distributions - Administrator Class ... 15,972,678 2,177,815
Cost of shares redeemed - Administrator Class ......... (20,012,165) (39,772,015)
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions - Administrator Class ... 18,213,148 32,260,812
------------ ------------
Proceeds from shares sold - Advisor Class ............. NA NA
Cost of shares redeemed - Advisor Class ............... NA NA
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transaction - Advisor Class .......... NA NA
------------ ------------
Proceeds from shares sold - Institutional Class ....... 8,878,928 18,897,943
Proceeds from redemption fees - Institutional Class ... 0 0
Reinvestment of distributions - Institutional Class ... 449,601 544
Cost of shares redeemed - Institutional Class ......... (3,618,803) (13,260,689)
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions - Institutional Class ... 5,709,726 5,637,798
------------ ------------
Proceeds from shares sold - Investor Class ............ 40,258,730 106,483,047
Proceeds from redemption fees - Investor Class ........ 0 0
Reinvestment of distributions - Investor Class ........ 42,977,151 11,025,510
Cost of shares redeemed - Investor Class .............. (51,862,056) (86,274,203)
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transaction - Investor Class ......... 31,373,825 31,234,354
------------ ------------
Net increase (decrease) in net assets resulting from
capital share transactions - Total .................... 58,449,247 69,694,264
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................... (61,062,517) 152,704,572
============ ============
ENDING NET ASSETS ........................................ $378,213,182 $439,275,699
============ ============
- ----------
(1) Classes A and C in Small Cap Disciplined Fund and Class C in Enterprise and
Opportunity Funds originated on March 31, 2008. Information presented for
these classes are for the one-month period from March 31, 2008 to April 30,
2008.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 55
Statements of changes in Net Assets
ENTERPRISE FUND(1) MID CAP DISCIPLINED FUND
---------------------------------- ----------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
---------------- ---------------- ---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .................................. $341,125,059 $233,433,978 $1,115,763,839 $ 991,299,607
OPERATIONS
Net investment income (loss) .......................... (887,432) (2,168,256) 4,086,329 10,201,157
Net realized gain (loss) on investments ............... 5,430,401 39,900,281 (9,190,532) 85,893,696
Net change in unrealized appreciation (depreciation) of
investments ........................................ (39,026,041) 36,456,816 (62,990,324) (35,392,515)
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
operations ............................................ (34,483,072) 74,188,841 (68,094,527) 60,702,338
------------ ------------ -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ............................................ NA NA (2,470) 0
Class C ............................................ 0 0 (96) 0
Administrator Class ................................ 0 0 (1,238,401) (714,398)
Institutional Class ................................ 0 0 (2,171,101) (1,242,457)
Investor Class ..................................... 0 0 (6,332,760) (4,367,987)
Net realized gain on sales of investments
Class A ............................................ NA NA (14,994) 0
Class C ............................................ 0 0 (824) 0
Administrator Class ................................ 0 0 (9,552,244) (6,333,196)
Institutional Class ................................ 0 0 (12,983,288) (8,845,203)
Investor Class ..................................... 0 0 (63,357,883) (49,011,946)
------------ ------------ -------------- --------------
Total distributions to shareholders ...................... 0 0 (95,654,061) (70,515,187)
------------ ------------ -------------- --------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ................... NA NA 442,013 114,433
Reinvestment of distributions - Class A ............... NA NA 16,576 0
Cost of shares redeemed - Class A ..................... NA NA (51,597) (11,551)
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
capital share transactions - Class A ............... NA NA 406,992 102,882
------------ ------------ -------------- --------------
Proceeds from shares sold - Class C ................... 10,000 0 10,118 10,000
Reinvestment of distributions - Class C ............... 0 0 920 0
Cost of shares redeemed - Class C ..................... 0 0 0 0
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
capital share transactions - Class C ............... 10,000 0 11,038 10,000
------------ ------------ -------------- --------------
Proceeds from shares sold - Administrator Class ....... 49,318,031 5,727,595 31,662,628 207,802,308
Proceeds from redemption fees - Administrator Class ... 0 0 0 0
Reinvestment of distributions - Administrator Class ... 0 0 10,649,451 6,998,646
Cost of shares redeemed - Administrator Class ......... (33,845,241) (5,743,573) (33,718,848) (192,915,877)
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
capital share transactions - Administrator Class ... 15,472,790 (15,978) 8,593,231 21,885,077
------------ ------------ -------------- --------------
Proceeds from shares sold - Advisor Class ............. 113,183 220,854 NA NA
Cost of shares redeemed - Advisor Class ............... (506,083) (648,689) NA NA
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
capital share transaction - Advisor Class .......... (392,900) (427,835) NA NA
------------ ------------ -------------- --------------
Proceeds from shares sold - Institutional Class ....... 34,539,205 86,049,728 15,824,141 151,621,032
Proceeds from redemption fees - Institutional Class ... 0 0 0 0
Reinvestment of distributions - Institutional Class ... 0 0 15,057,397 10,001,460
Cost of shares redeemed - Institutional Class ......... (11,704,304) (18,577,933) (12,216,978) (138,359,712)
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
capital share transactions - Institutional Class ... 22,834,901 67,471,795 18,664,560 23,262,780
------------ ------------ -------------- --------------
Proceeds from shares sold - Investor Class ............ 5,740,871 10,951,919 70,184,791 647,061,998
Proceeds from redemption fees - Investor Class ........ 0 0 0 0
Reinvestment of distributions - Investor Class ........ 0 0 67,456,720 51,361,766
Cost of shares redeemed - Investor Class .............. (13,270,035) (44,477,661) (252,916,723) (609,407,422)
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
capital share transaction - Investor Class ......... (7,529,164) (33,525,742) (115,275,212) 89,016,342
------------ ------------ -------------- --------------
Net increase (decrease) in net assets resulting from
capital share transactions - Total .................... 30,395,627 33,502,240 (87,599,391) 134,277,081
------------ ------------ -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS .................... (4,087,445) 107,691,081 (251,347,979) 124,464,232
============ ============ ============== ==============
ENDING NET ASSETS ........................................ $337,037,614 $341,125,059 $ 864,415,860 $1,115,763,839
============ ============ ============== ==============
56 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, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .......................... 98,630 7,829
Shares issued in reinvestment of distributions -
Class A ..................................... 1,972 0
Shares redeemed - Class A ...................... (4,518) 0
----------- -----------
Net increase (decrease) in shares outstanding -
Class A ..................................... 96,084 7,829
----------- -----------
Shares sold - Class C .......................... 44,059 12,896
Shares issued in reinvestment of distributions -
Class C ..................................... 5,531 0
Shares redeemed - Class C ...................... (1,746) 0
----------- -----------
Net increase (decrease) in shares outstanding -
Class C ..................................... 47,844 12,896
----------- -----------
Shares sold - Administrator Class .............. 969,703 2,782,043
Shares issued in reinvestment of distributions -
Administrator Class ......................... 713,384 97,660
Shares redeemed - Administrator Class .......... (943,215) (1,588,253)
----------- -----------
Net increase (decrease) in shares outstanding -
Administrator Class ......................... 739,872 1,291,450
----------- -----------
Shares-sold - Advisor Class .................... NA NA
Shares redeemed - Advisor Class ................ NA NA
----------- -----------
Net increase (decrease) in shares outstanding -
Advisor Class ............................... NA NA
----------- -----------
Shares sold - Institutional Class .............. 369,268 715,024
Shares issued in reinvestment of distributions -
Institutional Class ......................... 20,009 24
Shares redeemed - Institutional Class .......... (168,223) (490,907)
----------- -----------
Net increase (decrease) in shares outstanding -
Institutional Class ......................... 221,054 224,141
----------- -----------
Shares sold - Investor Class ................... 1,799,114 4,309,453
Shares issued in reinvestment of distributions -
Investor Class .............................. 1,936,780 497,091
Shares redeemed - Investor Class ............... (2,368,083) (3,533,054)
----------- -----------
Net increase (decrease) in shares outstanding -
Investor Class .............................. 1,367,811 1,273,490
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
RESULTING FROM CAPITAL SHARE TRANSACTIONS ...... $ 2,472,665 $ 2,809,806
=========== ===========
Ending balance of undistributed net investment
income (loss) .................................. (1,351,413) 0
----------- -----------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 57
Statements of Changes in Net Assets
ENTERPRISE FUND(1) MID CAP DISCIPLINED FUND
---------------------------- ---------------------------
For the
Six Months
For the For the Ended For the
Months Ended Year Ended April 30, Year Ended
April 30, 2008 October 31, 2008 October 31,
(Unaudited) 2007 (Unaudited) (2007)
------------- ----------- ------------ ------------
SHARES ISSUED AND REDEEMED ........................ NA NA 22,715 5,003
Shares sold - Class A .......................... NA NA 843 0
Shares issued in reinvestment of distributions -
Class A ..................................... NA NA (2,689) (515)
---------- ----------- ------------ ------------
Shares redeemed - Class A ...................... NA NA 20,869 4,488
---------- ----------- ------------ ------------
Net increase (decrease) in shares outstanding -
Class A ..................................... 326 0 543 438
Shares sold - Class C .......................... 0 0 47 0
Shares issued in reinvestment of distributions -
Class C ..................................... 0 0 0 0
---------- ----------- ------------ ------------
Shares redeemed - Class C ...................... 326 0 590 438
---------- ----------- ------------ ------------
Net increase (decrease) in shares outstanding -
Class C ..................................... 1,418,257 179,627 1,602,610 8,864,678
Shares sold - Administrator Class .............. 0 0 540,263 305,463
Shares issued in reinvestment of distributions -
Administrator Class ......................... (990,565) (178,474) (1,712,091) (8,174,216)
---------- ----------- ------------ ------------
Shares redeemed - Administrator Class .......... 427,692 1,153 430,782 995,925
---------- ----------- ------------ ------------
Net increase (decrease) in shares outstanding -
Administrator Class ......................... 3,275 6,491 NA NA
Shares-sold - Advisor Class .................... (15,678) (19,931) NA NA
---------- ----------- ------------ ------------
Shares redeemed - Advisor Class ................ (12,403) (13,440) NA NA
---------- ----------- ------------ ------------
Net increase (decrease) in shares outstanding -
Advisor Class ............................... 1,021,754 2,575,839 794,177 6,367,900
Shares sold - Institutional Class .............. 0 0 760,738 434,985
Shares issued in reinvestment of distributions -
Institutional Class ......................... (347,014) (551,688) (629,138) (5,894,571)
---------- ----------- ------------ ------------
Shares redeemed - Institutional Class .......... 674,740 2,024,151 925,777 908,314
---------- ----------- ------------ ------------
Net increase (decrease) in shares outstanding -
Institutional Class ......................... 173,107 333,210 3,596,977 27,786,391
Shares sold - Investor Class ................... 0 0 3,426,908 2,245,047
Shares issued in reinvestment of distributions -
Investor Class .............................. (403,135) (1,374,046) (12,869,427) (26,120,406)
Shares redeemed - Investor Class ............... ---------- ----------- ------------ ------------
Net increase (decrease) in shares outstanding -
Investor Class .............................. (230,028) (1,040,836) (5,845,542) 3,911,032
---------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
RESULTING FROM CAPITAL SHARE TRANSACTIONS ...... $ 860,327 $ 971,028 $ (4,467,524) $ 5,820,197
========== =========== ============ ============
Ending balance of undistributed net investment
income (loss) .................................. (887,432) 0 2,840,828 8,499,327
---------- ----------- ------------ ------------
58 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
OPPORTUNITY FUND(1)
-----------------------------------
For the
Six Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets ....................... $1,918,256,367 $2,053,182,794
OPERATIONS
Net investment income (loss) ............... (178,381) 10,330,922
Net realized gain (loss) on investments .... 98,440,323 282,872,413
Net change in unrealized appreciation
(depreciation) of investments ........... (238,416,958) (15,930,876)
-------------- --------------
Net increase (decrease) in net assets
resulting from operations .................. (140,155,016) 277,272,459
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ................................. NA NA
Class C ................................. 0 0
Administrator Class ..................... (2,299,721) (922,325)
Advisor Class ........................... (526,930) (76,971)
Institutional Class ..................... NA NA
Investor Class .......................... (19,525,561) (3,783,523)
Net realized gain on sales of investments
Class A ................................. NA NA
Class C ................................. 0 0
Administrator Class ..................... (21,743,434) (28,792,059)
Advisor Class ........................... (6,316,912) (8,786,139)
Institutional Class ..................... NA NA
Investor Class .......................... (242,587,013) (311,787,186)
-------------- --------------
Total distributions to shareholders ........... (292,999,571) (354,148,203)
-------------- --------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ........ NA NA
Reinvestment of distributions - Class A .... NA NA
Cost of shares redeemed - Class A .......... NA NA
-------------- --------------
Net increase (decrease) in net assets
resulting from capital share transactions
- Class A ............................... NA NA
-------------- --------------
Proceeds from shares sold - Class C ........ 10,000 0
Reinvestment of distributions - Class C .... 0 0
Cost of shares redeemed - Class C .......... 0 0
-------------- --------------
Net increase (decrease) in net assets
resulting from capital share transactions
- Class C ............................... 10,000 0
-------------- --------------
Proceeds from shares sold - Administrator
Class ................................... 17,145,898 69,438,914
Reinvestment of distributions -
Administrator Class ..................... 24,021,999 29,696,698
Cost of shares redeemed - Administrator
Class ................................... (12,303,827) (106,357,685)
-------------- --------------
Net increase (decrease) in net assets
resulting from capital share transactions
- Administrator Class ................... 28,864,070 (7,222,073)
-------------- --------------
Proceeds from shares sold - Advisor Class .. 2,655,456 11,900,855
Reinvestment of distributions - Advisor
Class ................................... 6,764,947 8,756,981
Cost of shares redeemed - Advisor Class .... (8,210,698) (25,495,620)
-------------- --------------
Net increase (decrease) in net assets
resulting from capital share
transaction - Advisor Class ............. 1,209,705 (4,837,784)
-------------- --------------
Proceeds from shares sold - Institutional
Class ................................... NA NA
Reinvestment of distributions -
Institutional Class ..................... NA NA
Cost of shares redeemed - Institutional
Class ................................... NA NA
-------------- --------------
Net increase (decrease) in net assets
resulting from capital share
transactions - Institutional Class ...... NA NA
-------------- --------------
Proceeds from shares sold - Investor
Class ................................... 40,987,498 112,324,489
Reinvestment of distributions - Investor
Class ................................... 253,499,248 305,531,881
Cost of shares redeemed - Investor Class ... (173,943,192) (463,847,196)
-------------- --------------
Net increase (decrease) in net assets
resulting from capital share transaction
- Investor Class ........................ 120,543,554 (45,990,826)
-------------- --------------
Net increase (decrease) in net assets resulting
from capital share transactions - Total .... 150,627,329 (58,050,683)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ......... (282,527,258) (134,926,427)
============== ==============
ENDING NET ASSETS ............................. $1,635,729,109 $1,918,256,367
============== ==============
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 59
Statements of Changes in Net Assets
SMALL CAP DISCIPLINED FUND(1) SMALL/MID CAP VALUE FUND
----------------------------------- ---------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
---------------- ---------------- -------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets ....................... $ 510,940,361 $ 426,387,948 $ 215,002,480 $ 225,361,564
OPERATIONS
Net investment income (loss) ............... 713,807 1,985,658 608,002 (1,283,241)
Net realized gain (loss) on investments .... 628,062 31,986,233 (426,578) 16,921,667
Net change in unrealized appreciation
(depreciation) of investments ........... (64,978,079) (12,608,084) (24,859,143) 10,553,662
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations .................. (63,636,210) 21,363,807 (24,677,719) 26,192,088
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ................................. 0 0 (8,835) 0
Class C ................................. 0 0 (225) 0
Administrator Class ..................... (160,700) 0 (173,061) 0
Advisor Class ........................... NA NA NA NA
Institutional Class ..................... (1,649,395) NA (49,369) 0
Investor Class .......................... (3,654,263) NA (191,583) 0
Net realized gain on sales of investments
Class A ................................. 0 0 (127,863) 0
Class C ................................. 0 0 (5,886) 0
Administrator Class ..................... (762,908) (529,497) (3,404,321) (1,079,791)
Advisor Class ........................... NA NA NA NA
Institutional Class ..................... (6,755,635) (3,109,104) (763,872) (145)
Investor Class .......................... (23,773,647) (17,653,538) (14,741,965) (2,222,873)
------------- ------------- ------------- -------------
Total distributions to shareholders ........... (36,756,548) (21,292,139) (19,466,980) (3,302,809)
------------- ------------- ------------- -------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ........ 29,382 0 7,836,213 437,020
Reinvestment of distributions - Class A .... 0 0 136,698 0
Cost of shares redeemed - Class A .......... (9,691) 0 (124,354) 0
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from capital share transactions
- Class A ............................... 19,691 0 7,848,557 437,020
------------- ------------- ------------- -------------
Proceeds from shares sold - Class C ........ 20,000 0 2,101,810 41,887
Reinvestment of distributions - Class C .... 0 0 6,111 0
Cost of shares redeemed - Class C .......... (10,000) 0 (5,925) 0
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from capital share transactions
- Class C ............................... 10,000 0 2,101,996 41,887
------------- ------------- ------------- -------------
Proceeds from shares sold - Administrator
Class ................................... 3,911,990 37,949,881 10,813,267 20,408,481
Reinvestment of distributions -
Administrator Class ..................... 915,636 525,096 3,090,608 706,950
Cost of shares redeemed - Administrator
Class ................................... (4,482,979) (31,829,974) (8,954,508) (59,586,730)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from capital share transactions
- Administrator Class ................... 344,647 6,645,003 4,949,367 (38,471,299)
------------- ------------- ------------- -------------
Proceeds from shares sold - Advisor Class .. NA NA NA NA
Reinvestment of distributions - Advisor
Class ................................... NA NA NA NA
Cost of shares redeemed - Advisor Class .... NA NA NA NA
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from capital share
transaction - Advisor Class ............. NA NA NA NA
------------- ------------- ------------- -------------
Proceeds from shares sold - Institutional
Class ................................... 15,033,104 197,170,437 5,733,451 3,058,868
Reinvestment of distributions -
Institutional Class ..................... 8,404,891 3,109,105 86,227 145
Cost of shares redeemed - Institutional
Class ................................... (23,585,070) (151,103,792) (37,045) (227,719)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from capital share
transactions - Institutional Class ...... (147,075) 49,175,750 5,782,633 2,831,294
------------- ------------- ------------- -------------
Proceeds from shares sold - Investor
Class ................................... 52,561,464 152,735,776 24,706,431 63,399,281
Reinvestment of distributions - Investor
Class ................................... 24,819,873 17,155,197 14,279,273 2,148,113
Cost of shares redeemed - Investor Class ... (86,318,994) (141,230,981) (44,566,775) (63,634,659)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from capital share transaction
- Investor Class ........................ (8,937,657) 28,659,992 (5,581,071) 1,912,735
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from capital share transactions - Total .... (8,710,394) 84,480,745 15,101,482 (33,248,363)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ......... (109,103,152) 84,552,413 (29,043,217) (10,359,084)
============= ============= ============= =============
ENDING NET ASSETS ............................. $ 401,837,209 $ 510,940,361 $ 185,959,263 $ 215,002,480
============= ============= ============= =============
60 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
OPPORTUNITY FUND(1)
-----------------------------------
For the
Six Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ................................................. NA NA
Shares issued in reinvestment of distributions - Class A .............. NA NA
Shares redeemed - Class A ............................................. NA NA
----------- ------------
Net increase (decrease) in shares outstanding - Class A ............... NA NA
----------- ------------
Shares sold - Class C ................................................. 298 0
Shares issued in reinvestment of distributions - Class C .............. 0 0
Shares redeemed - Class C ............................................. 0 0
----------- ------------
Net increase (decrease) in shares outstanding - Class C ............... 298 0
----------- ------------
Shares sold - Administrator Class ..................................... 463,577 1,562,836
Shares issued in reinvestment of distributions - Administrator Class .. 646,691 700,481
Shares redeemed - Administrator Class ................................. (338,393) (2,440,528)
----------- ------------
Net increase (decrease) in shares outstanding - Administrator Class ... 771,875 (177,211)
----------- ------------
Shares-sold - Advisor Class ........................................... 74,599 274,443
Shares issued in reinvestment of distributions - Advisor Class ........ 188,883 213,378
Shares redeemed - Advisor Class ....................................... (230,590) (585,225)
----------- ------------
Net increase (decrease) in shares outstanding - Advisor Class ......... 32,892 (97,404)
----------- ------------
Shares sold - Institutional Class ..................................... NA NA
Shares issued in reinvestment of distributions - Institutional Class .. NA NA
Shares redeemed - Institutional Class ................................. NA NA
----------- ------------
Net increase (decrease) in shares outstanding - Institutional Class ... NA NA
----------- ------------
Shares sold - Investor Class .......................................... 1,131,613 2,527,510
Shares issued in reinvestment of distributions - Investor Class ....... 6,922,747 7,298,985
Shares redeemed - Investor Class ...................................... (4,783,133) (10,404,457)
----------- ------------
Net increase (decrease) in shares outstanding - Investor Class ........ 3,271,227 (577,962)
----------- ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... $ 4,076,292 $ 852,577)
=========== ============
Ending balance of undistributed net investment income (loss) (3,563,095) 18,967,498
----------- ------------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 61
Statements of Changes in Net Assets
SMALL CAP DISCIPLINED FUND(1)
------------------------------
For the For the
Six Months Ended Year Ended
April 30, 2008 October 31,
(Unaudited) 2007
---------------- -----------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ................................................. 2,145 0
Shares issued in reinvestment of distributions - Class A .............. 0 0
Shares redeemed - Class A ............................................. (708) 0
----------- -----------
Net increase (decrease) in shares outstanding - Class A ............... 1,437 0
----------- -----------
Shares sold - Class C ................................................. 1,470 0
Shares issued in reinvestment of distributions - Class C .............. 0 0
Shares redeemed - Class C ............................................. (735) 0
----------- -----------
Net increase (decrease) in shares outstanding - Class C ............... 735 0
----------- -----------
Shares sold - Administrator Class ..................................... 264,709 2,055,502
Shares issued in reinvestment of distributions - Administrator Class .. 58,669 29,483
Shares redeemed - Administrator Class ................................. (298,958) (1,722,977)
----------- -----------
Net increase (decrease) in shares outstanding - Administrator Class ... 24,420 362,008
----------- -----------
Shares-sold - Advisor Class ........................................... NA NA
Shares issued in reinvestment of distributions - Advisor Class ........ NA NA
Shares redeemed - Advisor Class ....................................... NA NA
----------- -----------
Net increase (decrease) in shares outstanding - Advisor Class ......... NA NA
----------- -----------
Shares sold - Institutional Class ..................................... 1,064,746 11,042,652
Shares issued in reinvestment of distributions - Institutional Class .. 535,954 173,985
Shares redeemed - Institutional Class ................................. (1,586,431) (8,448,098)
----------- -----------
Net increase (decrease) in shares outstanding - Institutional Class ... 14,269 2,768,539
----------- -----------
Shares sold - Investor Class .......................................... 3,566,109 8,485,295
Shares issued in reinvestment of distributions - Investor Class ....... 1,605,684 969,765
Shares redeemed - Investor Class ...................................... (5,828,105) (7,833,209)
----------- -----------
Net increase (decrease) in shares outstanding - Investor Class ........ (656,312) 1,621,851
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... $ (615,451) $ 4,752,398
=========== ===========
Ending balance of undistributed net investment income (loss) ............. (2,465,180) 2,285,371
----------- -----------
SMALL/MID CAP VALUE FUND
-----------------------------------
For the
Six Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ................................................. 541,549 24,403
Shares issued in reinvestment of distributions - Class A .............. 9,421 0
Shares redeemed - Class A ............................................. (8,770) 0
----------- -----------
Net increase (decrease) in shares outstanding - Class A ............... 542,200 24,403
----------- -----------
Shares sold - Class C ................................................. 146,988 2,468
Shares issued in reinvestment of distributions - Class C .............. 422 0
Shares redeemed - Class C ............................................. (405) 0
----------- -----------
Net increase (decrease) in shares outstanding - Class C ............... 147,005 2,468
----------- -----------
Shares sold - Administrator Class ..................................... 738,899 1,171,235
Shares issued in reinvestment of distributions - Administrator Class .. 210,597 42,639
Shares redeemed - Administrator Class ................................. (596,620) (3,498,708)
----------- -----------
Net increase (decrease) in shares outstanding - Administrator Class ... 352,876 (2,284,834)
----------- -----------
Shares-sold - Advisor Class ........................................... NA NA
Shares issued in reinvestment of distributions - Advisor Class ........ NA NA
Shares redeemed - Advisor Class ....................................... NA NA
----------- -----------
Net increase (decrease) in shares outstanding - Advisor Class ......... NA NA
----------- -----------
Shares sold - Institutional Class ..................................... 333,347 169,550
Shares issued in reinvestment of distributions - Institutional Class .. 5,862 9
Shares redeemed - Institutional Class ................................. (2,509) (12,504)
----------- -----------
Net increase (decrease) in shares outstanding - Institutional Class ... 336,700 157,055
----------- -----------
Shares sold - Investor Class .......................................... 1,648,679 3,709,563
Shares issued in reinvestment of distributions - Investor Class ....... 984,302 130,505
Shares redeemed - Investor Class ...................................... (3,035,143) (3,699,627)
----------- -----------
Net increase (decrease) in shares outstanding - Investor Class ........ (402,162) 140,441
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE
TRANSACTIONS .......................................................... $ 976,619 $(1,960,467)
=========== ===========
Ending balance of undistributed net investment income (loss) ............. (1,256,654) (1,441,583)
----------- -----------
62 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income (Loss) on Investments Income
--------- ------------- -------------- -------------
DISCOVERY FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .............. $28.07 (0.08)(6) (3.15) 0.00
August 1, 2007(4) to October 31, 2007 ....................... $25.25 (0.06)(6) 2.88 0.00
Class C
November 1, 2007 to April 30, 2008 (Unaudited) .............. $28.04 (0.16)(6) (3.19) 0.00
August 1, 2007(4) to October 31, 2007 ....................... $25.25 (0.19)(6) 2.98 0.00
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .............. $28.23 (0.06)(6) (3.17) 0.00
November 1, 2006 to October 31, 2007 ........................ $22.42 (0.16)(6) 7.13 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, 2007 to April 30, 2008 (Unaudited) .............. $28.31 (0.04)(6) (3.17) 0.00
November 1, 2006 to October 31, 2007 ........................ $22.43 (0.08)(6) 7.12 0.00
August 31, 2006(4) to October 31, 2006 ...................... $21.42 (0.01) 1.02 0.00
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) .............. $28.02 (0.08)(6) (3.14) 0.00
November 1, 2006 to October 31, 2007 ........................ $22.31 (0.22)(6) 7.09 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
ENTERPRISE FUND
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) ............. $31.65 (0.04)(6) 2.16 0.00
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .............. $38.71 (0.05)(6) (3.83) 0.00
November 1, 2006 to October 31, 2007 ........................ $29.83 (0.18)(6) 9.06 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, 2007 to April 30, 2008 (Unaudited) .............. $37.95 (0.12)(6) (3.73) 0.00
November 1, 2006 to October 31, 2007 ........................ $29.31 (0.26)(6) 8.90 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
- ----------
(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.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 63
Financial Highlights
Ending Ratio to Average Net Assets (Annualized)(1)
Distributions Net Asset --------------------------------------------
from Net Value Per Net Investment Gross Expenses Net
Realized Gains Share Income (Loss) Expenses Waived Expenses
-------------- --------- -------------- -------- -------- --------
DISCOVERY FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .......... (3.98) $20.86 (0.81)% 1.39% (0.06)% 1.33%
August 1, 2007(4) to October 31, 2007 ................... 0.00 $28.07 (0.87)% 1.38% (0.08)% 1.30%
Class C
November 1, 2007 to April 30, 2008 (Unaudited) .......... (3.98) $20.71 (1.52)% 2.17% (0.09)% 2.08%
August 1, 2007(4) to October 31, 2007 ................... 0.00 $28.04 (2.85)% 2.02% (0.14)% 1.88%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... (3.98) $21.02 (0.55)% 1.25% (0.10)% 1.15%
November 1, 2006 to October 31, 2007 .................... (1.16) $28.23 (0.65)% 1.22% (0.07)% 1.15%
November 1, 2005 to October 31, 2006 .................... (1.53) $22.42 (0.69)% 1.25% (0.10)% 1.15%
April 11, 2005(4) to October 31, 2005 ................... 0.00 $20.89 (0.76)% 1.24% (0.11)% 1.13%
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... (3.98) $21.12 (0.36)% 0.99% (0.04)% 0.95%
November 1, 2006 to October 31, 2007 .................... (1.16) $28.31 (0.32)% 0.96% (0.01)% 0.95%
August 31, 2006(4) to October 31, 2006 .................. 0.00 $22.43 (0.37)% 0.87% 0.00% 0.87%
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... (3.98) $20.82 (0.77)% 1.58% (0.20)% 1.38%
November 1, 2006 to October 31, 2007 .................... (1.16) $28.02 (0.89)% 1.57% (0.19)% 1.38%
November 1, 2005 to October 31, 2006 .................... (1.53) $22.31 (0.91)% 1.58% (0.20)% 1.38%
January 1, 2005 to October 31, 2005(7) .................. (0.97) $20.84 (1.00)% 1.55% (0.16)% 1.39%
January 1, 2004 to December 31, 2004 .................... (1.21) $21.53 (1.11)% 1.44% (0.04)% 1.40%
January 1, 2003 to December 31, 2003 .................... (0.21) $19.73 (0.67)% 1.47% (0.04)% 1.43%
January 1, 2002 to December 31, 2002 .................... (0.45) $14.42 (0.38)% 1.50% (0.04)% 1.46%
ENTERPRISE FUND
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) ......... 0.00 $33.77 (0.22)% 2.10% 0.00% 2.10%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... 0.00 $34.83 (0.27)% 1.29% (0.14)% 1.15%
November 1, 2006 to October 31, 2007 .................... 0.00 $38.71 (0.54)% 1.24% (0.09)% 1.15%
November 1, 2005 to October 31, 2006 .................... 0.00 $29.83 (0.63)% 1.23% (0.08)% 1.15%
January 1, 2005 to October 31, 2005(7) .................. 0.00 $25.95 (0.64)% 1.23% (0.08)% 1.15%
January 1, 2004 to December 31, 2004 .................... 0.00 $25.36 (0.83)% 1.34% (0.20)% 1.14%
January 1, 2003 to December 31, 2003 .................... 0.00 $21.98 (0.82)% 1.30% (0.14)% 1.16%
August 30, 2002(4) to December 31, 2002 ................. 0.00 $15.94 (0.63)% 1.32% (0.18)% 1.14%
Advisor Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... 0.00 $34.10 (0.69)% 1.46% (0.06)% 1.40%
November 1, 2006 to October 31, 2007 .................... 0.00 $37.95 (0.79)% 1.42% (0.02)% 1.40%
November 1, 2005 to October 31, 2006 .................... 0.00 $29.31 (0.89)% 1.42% (0.03)% 1.39%
January 1, 2005 to October 31, 2005(7) .................. 0.00 $25.57 (1.02)% 1.49% (0.04)% 1.45%
January 1, 2004 to December 31, 2004 .................... 0.00 $25.04 (1.22)% 1.60% (0.05)% 1.55%
January 1, 2003 to December 31, 2003 .................... 0.00 $21.79 (1.14)% 1.53% (0.03)% 1.50%
January 1, 2002 to December 31, 2002 .................... 0.00 $15.86 (1.33)% 1.82% (0.02)% 1.80%
Portfolio Net Assets at
Total Turnover End of Period
Return(2) Rate(3) (000's omitted)
--------- --------- ---------------
DISCOVERY FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .......... (12.37)% 63% $ 2,167
August 1, 2007(4) to October 31, 2007 ................... 11.17% 137% $ 220
Class C
November 1, 2007 to April 30, 2008 (Unaudited) .......... (12.84)% 63% $ 1,258
August 1, 2007(4) to October 31, 2007 ................... 11.05% 137% $ 362
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... (12.29)% 63% $106,827
November 1, 2006 to October 31, 2007 .................... 32.49% 137% $122,576
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, 2007 to April 30, 2008 (Unaudited) .......... (12.21)% 63% $ 9,411
November 1, 2006 to October 31, 2007 .................... 32.80% 137% $ 6,359
August 31, 2006(4) to October 31, 2006 .................. 4.72% 120% $ 10
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... (12.40)% 63% $258,550
November 1, 2006 to October 31, 2007 .................... 32.19% 137% $309,759
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
ENTERPRISE FUND
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) ......... (10.45)% 86% $ 11
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .......... (10.02)% 86% $ 17,917
November 1, 2006 to October 31, 2007 .................... 29.77% 117% $ 3,358
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, 2007 to April 30, 2008 (Unaudited) .......... (10.17)% 86% $ 1,167
November 1, 2006 to October 31, 2007 .................... 29.48% 117% $ 1,769
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
64 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income (Loss) on Investments Income
--------- ------------- -------------- ---------------
ENTERPRISE FUND (continued)
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) ... $38.90 (0.03)(6) (3.82) 0.00
November 1, 2006 to October 31, 2007 ............. $29.90 (0.10)(6) 9.10 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, 2007 to April 30, 2008 (Unaudited) ... $37.62 (0.14)(6) (3.70) 0.00
November 1, 2006 to October 31, 2007 ............. $29.11 (0.32)(6) 8.83 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
MID CAP DISCIPLINED FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) ... $23.12 0.07(6) (1.39) (0.28)
August 1, 2007(4) to October 31, 2007 ............ $22.85 0.07(6) 0.20 0.00
Class C
November 1, 2007 to April 30, 2008 (Unaudited) ... $23.08 0.01(6) (1.40) (0.20)
August 1, 2007(4) to October 31, 2007 ............ $22.85 0.05(6) 0.18 0.00
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... $23.16 0.09(6) (1.40) (0.22)
November 1, 2006 to October 31, 2007 ............. $23.40 0.21(6) 1.11 (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, 2007 to April 30, 2008 (Unaudited) ... $23.26 0.12(6) (1.40) (0.29)
November 1, 2006 to October 31, 2007 ............. $23.47 0.29(6) 1.10 (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, 2007 to April 30, 2008 (Unaudited) ... $23.11 0.08(6) (1.39) (0.17)
November 1, 2006 to October 31, 2007 ............. $23.36 0.18(6) 1.10 (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
OPPORTUNITY FUND
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) .. $34.77 (0.01)(6) 1.14 0.00
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... $46.86 0.05(6) (3.29) (0.60)
November 1, 2006 to October 31, 2007 ............. $49.05 0.33(6) 6.14 (0.22)
November 1, 2005 to October 31, 2006 ............. $47.61 0.19 6.18 0.00
January 1, 2005 to October 31, 2005(7) ........... $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, 2007 to April 30, 2008 (Unaudited) ... $45.42 0.00(6) (3.19) (0.47)
November 1, 2006 to October 31, 2007 ............. $47.74 0.24(6) 5.94 (0.06)
November 1, 2005 to October 31, 2006 ............. $46.57 0.23 5.87 0.00
January 1, 2005 to October 31, 2005(7) ........... $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
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Wells Fargo Advantage Small and Mid Cap Stock Funds 65
Ratio to Average Net Assets (Annualized)(1)
-------------------------------------------
Distributions Ending Net
from Net Net Asset Investment
Realized Value Per Income Gross Expenses Net
Gains Share (Loss) Expenses Waived Expenses
------------- --------- ---------- -------- -------- --------
ENTERPRISE FUND (continued)
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) ... 0.00 $35.05 (0.20)% 1.00% (0.10)% 0.90%
November 1, 2006 to October 31, 2007 ............. 0.00 $38.90 (0.30)% 0.97% (0.07)% 0.90%
November 1, 2005 to October 31, 2006 ............. 0.00 $29.90 (0.39)% 0.98% (0.08)% 0.90%
January 1, 2005 to October 31, 2005(7) ........... 0.00 $25.95 (0.47)% 0.97% (0.09)% 0.88%
January 1, 2004 to December 31, 2004 ............. 0.00 $25.30 (0.47)% 0.88% (0.05)% 0.83%
June 30, 2003(4) to December 31, 2003 ............ 0.00 $21.87 (0.67)% 1.18% (0.21)% 0.97%
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... 0.00 $33.78 (0.84)% 1.61% (0.12)% 1.49%
November 1, 2006 to October 31, 2007 ............. 0.00 $37.62 (0.96)% 1.59% (0.02)% 1.57%
November 1, 2005 to October 31, 2006 ............. 0.00 $29.11 (1.05)% 1.59% (0.03)% 1.56%
January 1, 2005 to October 31, 2005(7) ........... 0.00 $25.43 (1.23)% 1.69% (0.04)% 1.65%
January 1, 2004 to December 31, 2004 ............. 0.00 $24.95 (1.51)% 1.89% (0.04)% 1.85%
January 1, 2003 to December 31, 2003 ............. 0.00 $21.78 (1.44)% 1.96% (0.16)% 1.80%
January 1, 2002 to December 31, 2002 ............. 0.00 $15.90 (1.51)% 2.02% (0.06)% 1.96%
MID CAP DISCIPLINED FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.88) $19.64 0.77% 1.31% (0.06)% 1.25%
August 1, 2007(4) to October 31, 2007 ............ 0.00 $23.12 1.17% 1.39% (0.19)% 1.20%
Class C
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.88) $19.61 0.06% 3.91% (1.91)% 2.00%
August 1, 2007(4) to October 31, 2007 ............ 0.00 $23.08 0.79% 2.12% (0.14)% 1.98%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.88) $19.75 0.97% 1.24% (0.09)% 1.15%
November 1, 2006 to October 31, 2007 ............. (1.41) $23.16 0.91% 1.17% (0.02)% 1.15%
November 1, 2005 to October 31, 2006 ............. (3.42) $23.40 0.70% 1.20% (0.05)% 1.15%
April 11, 2005(4) to October 31, 2005 ............ 0.00 $23.25 0.36% 1.20% (0.06)% 1.14%
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.88) $19.81 1.22% 0.97% (0.07)% 0.90%
November 1, 2006 to October 31, 2007 ............. (1.41) $23.26 1.23% 0.90% 0.00% 0.90%
November 1, 2005 to October 31, 2006 ............. (3.42) $23.47 0.93% 0.92% (0.02)% 0.90%
April 11, 2005(4) to October 31, 2005 ............ 0.00 $23.28 0.53% 0.92% (0.04)% 0.88%
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.88) $19.75 0.82% 1.56% (0.25)% 1.31%
November 1, 2006 to October 31, 2007 ............. (1.41) $23.11 0.76% 1.52% (0.21)% 1.31%
November 1, 2005 to October 31, 2006 ............. (3.42) $23.36 0.53% 1.54% (0.23)% 1.31%
January 1, 2005 to October 31, 2005(7) ........... (0.18) $23.23 0.02% 1.51% (0.17)% 1.34%
January 1, 2004 to December 31, 2004 ............. (1.80) $22.34 0.36% 1.35% (0.05)% 1.30%
January 1, 2003 to December 31, 2003 ............. (0.71) $20.13 0.13% 1.49% (0.04)% 1.45%
January 1, 2002 to December 31, 2002 ............. (0.52) $14.85 0.09% 1.48% (0.01)% 1.47%
OPPORTUNITY FUND
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) .. 0.00 $35.90 (0.08)% 2.05% (0.01)% 2.04%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (6.64) $36.38 0.27% 1.18% (0.14)% 1.04%
November 1, 2006 to October 31, 2007 ............. (8.44) $46.86 0.73% 1.18% (0.14)% 1.04%
November 1, 2005 to October 31, 2006 ............. (4.93) $49.05 0.48% 1.13% (0.09)% 1.04%
January 1, 2005 to October 31, 2005(7) ........... 0.00 $47.61 (0.14)% 1.13% (0.10)% 1.03%
January 1, 2004 to December 31, 2004 ............. 0.00 $46.65 (0.35)% 1.27% (0.12)% 1.15%
January 1, 2003 to December 31, 2003 ............. 0.00 $39.58 (0.20)% 1.55% (0.36)% 1.19%
August 30(4), 2002 to December 31, 2002 .......... 0.00 $28.73 0.21% 1.22% (0.06)% 1.16%
Advisor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (6.64) $35.12 0.01% 1.35% (0.06)% 1.29%
November 1, 2006 to October 31, 2007 ............. (8.44) $45.42 0.55% 1.36% (0.07)% 1.29%
November 1, 2005 to October 31, 2006 ............. (4.93) $47.74 0.39% 1.30% (0.01)% 1.29%
January 1, 2005 to October 31, 2005(7) ........... 0.00 $46.57 (0.49)% 1.42% (0.02)% 1.40%
January 1, 2004 to December 31, 2004 ............. 0.00 $45.71 (0.76)% 1.60% (0.04)% 1.56%
January 1, 2003 to December 31, 2003 ............. 0.00 $38.94 (0.58)% 1.56% (0.01)% 1.55%
January 1, 2002 to December 31, 2002 ............. 0.00 $28.37 (0.38)% 1.58% (0.01)% 1.57%
Portfolio Net Assets at
Total Turnover End of Period
Return(2) Rate(3) (000's omitted)
--------- --------- ---------------
ENTERPRISE FUND (continued)
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (9.90)% 86% $137,482
November 1, 2006 to October 31, 2007 ............. 30.10% 117% $126,347
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, 2007 to April 30, 2008 (Unaudited) ... (10.21)% 86% $180,461
November 1, 2006 to October 31, 2007 ............. 29.23% 117% $209,651
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
MID CAP DISCIPLINED FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) ... (5.57)% 76% $ 498
August 1, 2007(4) to October 31, 2007 ............ 1.18% 113% $ 104
Class C
November 1, 2007 to April 30, 2008 (Unaudited) ... (5.93)% 76% $ 20
August 1, 2007(4) to October 31, 2007 ............ 1.01% 113% $ 10
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (5.52)% 76% $110,072
November 1, 2006 to October 31, 2007 ............. 5.75% 113% $119,079
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, 2007 to April 30, 2008 (Unaudited) ... (5.38)% 76% $152,324
November 1, 2006 to October 31, 2007 ............. 6.04% 113% $157,342
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, 2007 to April 30, 2008 (Unaudited) ... (5.54)% 76% $601,501
November 1, 2006 to October 31, 2007 ............. 5.58% 113% $839,228
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
OPPORTUNITY FUND
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) .. (7.49)% 36% $ 11
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (7.03)% 36% $145,925
November 1, 2006 to October 31, 2007 ............. 15.17% 56% $151,776
November 1, 2005 to October 31, 2006 ............. 14.15% 39% $167,560
January 1, 2005 to October 31, 2005(7) ........... 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, 2007 to April 30, 2008 (Unaudited) ... (7.13)% 36% $ 35,609
November 1, 2006 to October 31, 2007 ............. 14.89% 56% $ 44,558
November 1, 2005 to October 31, 2006 ............. 13.86% 39% $ 51,489
January 1, 2005 to October 31, 2005(7) ........... 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
66 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income (Loss) on Investments Income
--------- ------------- -------------- -------------
OPPORTUNITY FUND (continued)
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... $46.28 (0.01)(6) (3.25) (0.46)
November 1, 2006 to October 31, 2007 ............. $48.54 0.23(6) 6.04 (0.09)
November 1, 2005 to October 31, 2006 ............. $47.29 0.09 6.09 0.00
January 1, 2005 to October 31, 2005(7) ........... $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
SMALL CAP DISCIPLINED FUND
Class A
March 31, 2008(4) to April 30, 2008 (Unaudited) .. $14.12 0.00(6) 0.41 0.00
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) .. $14.00 (0.01)(6) 0.42 0.00
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... $18.10 0.04(6) (2.24) (0.22)
November 1, 2006 to October 31, 2007 ............. $18.11 0.11(6) 0.75 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, 2007 to April 30, 2008 (Unaudited) ... $18.19 0.05(6) (2.25) (0.26)
November 1, 2006 to October 31, 2007 ............. $18.16 0.15(6) 0.75 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, 2007 to April 30, 2008 (Unaudited) ... $17.92 0.02(6) (2.22) (0.17)
November 1, 2006 to October 31, 2007 ............. $18.00 0.05(6) 0.74 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(7) ........... $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
Class A
November 1, 2007 to April 30, 2008 (Unaudited) ... $18.19 0.12(6) (2.15) (0.09)
August 1, 2007(4) to October 31, 2007 ............ $17.09 (0.02)(6) 1.12 0.00
Class C
November 1, 2007 to April 30, 2008 (Unaudited) ... $18.15 0.13(6) (2.20) (0.06)
August 1, 2007(4) to October 31, 2007 ............ $17.09 (0.06)(6) 1.12 0.00
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... $18.37 0.07(6) (2.10) (0.08)
November 1, 2006 to October 31, 2007 ............. $16.45 (0.05)(6) 2.20 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, 2007 to April 30, 2008 (Unaudited) ... $18.40 0.09(6) (2.11) (0.10)
November 1, 2006 to October 31, 2007 ............. $16.45 (0.03)(6) 2.21 0.00
August 31, 2006(4) to October 31, 2006 ........... $16.01 0.01 0.43 0.00
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... $18.18 0.04(6) (2.08) (0.02)
November 1, 2006 to October 31, 2007 ............. $16.34 (0.12)(6) 2.19 0.00
November 1, 2005 to October 31, 2006 ............. $14.62 (0.01) 2.05 0.00
January 1, 2005 to October 31, 2005(7) ........... $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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 67
Financial Highlights
Ratio to Average Net Assets (Annualized)(1)
-------------------------------------------
Distributions Ending Net
from Net Net Asset Investment
Realized Value Per Income Gross Expenses Net
Gains Share (Loss) Expenses Waived Expenses
------------- --------- ---------- -------- -------- --------
OPPORTUNITY FUND (continued)
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (6.64) $35.92 (0.05)% 1.51% (0.16)% 1.35%
November 1, 2006 to October 31, 2007 ............. (8.44) $46.28 0.50% 1.53% (0.18)% 1.35%
November 1, 2005 to October 31, 2006 ............. (4.93) $48.54 0.18% 1.47% (0.12)% 1.35%
January 1, 2005 to October 31, 2005(7) ........... 0.00 $47.29 (0.46)% 1.46% (0.10)% 1.36%
January 1, 2004 to December 31, 2004 ............. 0.00 $46.40 (0.55)% 1.39% (0.04)% 1.35%
January 1, 2003 to December 31, 2003 ............. 0.00 $39.45 (0.43)% 1.42% (0.02)% 1.40%
January 1, 2002 to December 31, 2002 ............. 0.00 $28.70 (0.23)% 1.41% (0.01)% 1.40%
SMALL CAP DISCIPLINED FUND
Class A
March 31, 2008(4) to April 30, 2008 (Unaudited) .. 0.00 $14.53 (0.03)% 1.52% (0.07)% 1.45%
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) .. 0.00 $14.41 (0.20)% 2.24% (0.04)% 2.20%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.14) $14.54 0.52% 1.41% (0.21)% 1.20%
November 1, 2006 to October 31, 2007 ............. (0.87) $18.10 0.58% 1.39% (0.19)% 1.20%
November 1, 2005 to October 31, 2006 ............. (0.78) $18.11 0.08% 1.39% (0.19)% 1.20%
April 11, 2005(4) to October 31, 2005 ............ 0.00 $16.07 (0.30)% 1.45% (0.21)% 1.24%
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.14) $14.59 0.71% 1.14% (0.14)% 1.00%
November 1, 2006 to October 31, 2007 ............. (0.87) $18.19 0.84% 1.12% (0.12)% 1.00%
November 1, 2005 to October 31, 2006 ............. (0.78) $18.16 0.20% 1.11% (0.11)% 1.00%
April 11, 2005(4) to October 31, 2005 ............ 0.00 $16.09 0.08% 1.10% (0.52)% 0.58%
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.14) $14.41 0.23% 1.71% (0.22)% 1.49%
November 1, 2006 to October 31, 2007 ............. (0.87) $17.92 0.26% 1.74% (0.21)% 1.53%
November 1, 2005 to October 31, 2006 ............. (0.78) $18.00 (0.37)% 1.73% (0.12)% 1.61%
January 1, 2005 to October 31, 2005(7) ........... (0.21) $16.04 (0.57)% 1.73% (0.11)% 1.62%
January 1, 2004 to December 31, 2004 ............. (0.90) $16.70 (0.55)% 1.65% (0.06)% 1.59%
January 1, 2003 to December 31, 2003 ............. (0.87) $13.91 (0.89)% 1.89% (0.18)% 1.71%
March 28, 2002(4) to December 31, 2002 ........... 0.00 $ 9.12 (0.98)% 2.55% (0.60)% 1.95%
SMALL/MID CAP VALUE FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.60) $14.47 1.76% 1.54% (0.14)% 1.40%
August 1, 2007(4) to October 31, 2007 ............ 0.00 $18.19 (0.50)% 1.50% (0.24)% 1.27%
Class C
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.60) $14.42 1.87% 2.30% (0.15)% 2.15%
August 1, 2007(4) to October 31, 2007 ............ 0.00 $18.15 (1.32)% 2.27% (0.17)% 2.10%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.60) $14.66 0.99% 1.46% (0.31)% 1.15%
November 1, 2006 to October 31, 2007 ............. (0.23) $18.37 (0.30)% 1.37% (0.22)% 1.15%
November 1, 2005 to October 31, 2006 ............. (0.32) $16.45 0.08% 1.43% (0.28)% 1.15%
April 11, 2005(4) to October 31, 2005 ............ 0.00 $14.65 (0.18)% 1.48% (0.24)% 1.24%
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.60) $14.68 1.20% 1.11% (0.16)% 0.95%
November 1, 2006 to October 31, 2007 ............. (0.23) $18.40 (0.18)% 1.10% (0.16)% 0.94%
August 31, 2006(4) to October 31, 2006 ........... 0.00 $16.45 0.53% 1.04% (0.15)% 0.89%
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (1.60) $14.52 0.52% 1.71% (0.22)% 1.49%
November 1, 2006 to October 31, 2007 ............. (0.23) $18.18 (0.68)% 1.73% (0.21)% 1.52%
November 1, 2005 to October 31, 2006 ............. (0.32) $16.34 (0.33)% 1.78% (0.21)% 1.57%
January 1, 2005 to October 31, 2005(7) ........... (0.35) $14.62 (1.01)% 1.95% (0.25)% 1.70%
January 1, 2004 to December 31, 2004 ............. (0.48) $13.83 (1.30)% 2.06% (0.30)% 1.76%
January 1, 2003 to December 31, 2003 ............. 0.00 $12.01 (0.55)% 2.86% (1.06)% 1.80%
March 28, 2002(4) to December 31, 2002 ........... 0.00 $ 7.58 (0.74)% 3.56% (1.64)% 1.92%
Portfolio Net Assets at
Total Turnover End of Period
Return(2) Rate(3) (000's omitted)
--------- --------- ---------------
OPPORTUNITY FUND (continued)
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (7.18)% 36% $1,454,184
November 1, 2006 to October 31, 2007 ............. 14.81% 56% $1,721,922
November 1, 2005 to October 31, 2006 ............. 13.81% 39% $1,834,134
January 1, 2005 to October 31, 2005(7) ........... 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
SMALL CAP DISCIPLINED FUND
Class A
March 31, 2008(4) to April 30, 2008 (Unaudited) .. (12.73)% 40% $ 21
Class C
March 31, 2008(4) to April 30, 2008 (Unaudited) .. (13.01)% 40% $ 11
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (12.58)% 40% $ 10,433
November 1, 2006 to October 31, 2007 ............. 4.84% 97% $ 12,548
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, 2007 to April 30, 2008 (Unaudited) ... (12.55)% 40% $ 91,956
November 1, 2006 to October 31, 2007 ............. 5.05% 97% $ 114,345
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, 2007 to April 30, 2008 (Unaudited) ... (12.75)% 40% $ 299,417
November 1, 2006 to October 31, 2007 ............. 4.46% 97% $ 384,047
November 1, 2005 to October 31, 2006 ............. 17.68% 100% $ 356,484
January 1, 2005 to October 31, 2005(7) ........... (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
Class A
November 1, 2007 to April 30, 2008 (Unaudited) ... (11.16)% 24% $ 8,196
August 1, 2007(4) to October 31, 2007 ............ 6.44% 89% $ 444
Class C
November 1, 2007 to April 30, 2008 (Unaudited) ... (11.46)% 24% $ 2,156
August 1, 2007(4) to October 31, 2007 ............ 6.20% 89% $ 45
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (11.07)% 24% $ 38,685
November 1, 2006 to October 31, 2007 ............. 13.24% 89% $ 41,988
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, 2007 to April 30, 2008 (Unaudited) ... (10.96)% 24% $ 7,256
November 1, 2006 to October 31, 2007 ............. 13.42% 89% $ 2,902
August 31, 2006(4) to October 31, 2006 ........... 2.75% 56% $ 10
Investor Class
November 1, 2007 to April 30, 2008 (Unaudited) ... (11.24)% 24% $ 129,666
November 1, 2006 to October 31, 2007 ............. 12.83% 89% $ 169,624
November 1, 2005 to October 31, 2006 ............. 14.13% 56% $ 150,180
January 1, 2005 to October 31, 2005(7) ........... 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
68 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The Trust commenced operations on November 8, 1999, and at April 30,
2008, was comprised of 111 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.
Under the Trust's organizational documents, their officers and directors are
indemnified against certain liabilities that may arise out of performance of
their duties to the Trust. Additionally, in the normal course of business, the
Trust may enter into contracts with service providers that contain a variety of
indemnification clauses. The Trust's maximum exposure under these arrangements
is dependent on future claims that may be made against the 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
Wells Fargo Advantage Small and Mid Cap Stock Funds 69
Notes to Financial Statements
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 with original maturities of 60 days or less and other short-term
debt securities in which cash collateral received for securities loaned may be
invested, 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.
AFFILIATE SECURITIES
An affiliate company is a company in which the fund has ownership of at least 5%
of the voting securities. Companies that are affiliates of the fund at
period-end are noted in the Fund's Schedule of Investments. The following
positions were held at April 30, 2008:
Unrealized % of Shares
Shares Cost Market Value Gain/Loss Outstanding
--------- ----------- ------------ ----------- -----------
SMALL CAP DISCIPLINED FUND
Playboy Enterprise Incorporated Class B 1,500,000 $15,522,555 $12,540,000 $(2,982,555) 5.28%
SMALL/MID CAP VALUE FUND
Encorium Group Incorporated 2,127,347 5,313,822 4,254,694 (1,059,128) 10.20%
Allied Healthcare Products Incorporated 513,486 2,792,438 3,219,557 427,119 6.51%
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.
70 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
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, 2008.
Management has analyzed the Fund's tax positions taken on federal income tax
returns for all open tax years and has concluded that as of April 30, 2008, no
provision for income tax would be required in the Fund's financial statements.
The Fund's federal and state income and federal excise tax returns for tax years
for which the applicable statutes of limitations have not expired (open tax
years: December 31, 2004; October 31, 2005; October 31, 2006; October 31, 2007)
are subject to examination by the Internal Revenue Service and state departments
of revenue.
At October 31, 2007, the Funds' last fiscal year end, the Fund's net capital
loss carryforwards, which are available to offset future net realized capital
gains, were:
Capital Loss
FUND Expiration Year Carryforwards
- ---- --------------- -------------
ENTERPRISE FUND 2009 $121,695,782
2010 64,764,000
FUTURES CONTRACTS
The Funds may purchase futures contracts to gain exposure to market changes,
which may be more efficient or cost effective than actually buying the
securities. A futures contract is an agreement between parties to buy or sell a
security at a set price on a future date. Upon entering into such a contract, a
Fund is required to pledge to the broker an amount of cash, U.S. Government
obligations or other high-quality debt securities equal to the minimum "initial
margin" requirements of the exchange on which the futures contract is traded.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as "variation margin" and are recorded by
the Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission (the "SEC") for long futures positions, the Fund is required
to segregate highly liquid securities as permitted by the SEC in connection with
futures transactions in an amount generally equal to the 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, 2008, there were no open futures contracts.
SECURITY LOANS
The Funds may loan securities in return for securities, irrevocable letters of
credit or cash collateral, which is invested in various short-term fixed income
securities. A Fund may receive compensation for lending securities in the form
of fees or by retaining a portion of interest on the investment securities or
cash received as collateral. A Fund also continues to receive interest or
dividends on the securities loaned. Security loans are secured at all times by
collateral. The collateral is equal to at least 102% of the market value of the
securities loaned plus accrued interest when the transaction is entered into.
The collateral supporting loans of domestic and foreign equity securities and
corporate bonds 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
Wells Fargo Advantage Small and Mid Cap Stock Funds 71
Notes to Financial Statements
market value of the securities loaned plus any accrued interest. Cash collateral
received by a Fund pursuant to these loans generally is invested on behalf of
the Fund by the securities lending agent in high-quality short-term debt
investments (including money market instruments) according to written investment
guidelines that are approved by the Fund's adviser and designed to be consistent
with the investment objective, principal investment strategies and policies of
the Fund. Gain or loss in the market price of the securities loaned and
securities in which the cash collateral is invested by a Fund that may occur
during the term of the loan are reflected in the value of the Funds. A risk from
securities lending is that the borrower may not provide additional collateral
when required or return the securities when due or when called for by the Fund.
A further risk is the potential loss in the market price of the securities in
which the cash collateral may be invested. Wells Fargo Bank, N.A., the Funds'
custodian, acts as the securities lending agent for the Funds and receives for
its services 25% of the revenues earned on the securities lending activities
(reduced from 30% effective September 1, 2007) and incurs all expenses. For the
six-month period ended April 30, 2008, Wells Fargo Bank, N.A. waived its share
of revenues earned on securities lending activities. The value of the securities
on loan and the value of the related collateral at April 30, 2008, are shown on
the Statements of Assets and Liabilities.
SWAP CONTRACTS
The Funds may enter into various hedging transactions, such as interest rate
swaps to preserve a return or spread on a particular investment or portion of
its portfolio, to create synthetic adjustable-rate mortgage securities or for
other purposes. Swaps involve the exchange of commitments to make or receive
payments, e.g., an exchange of floating-rate payments for fixed rate payments.
The Funds record as an increase or decrease to realized gain/loss, the amount
due or owed by the Funds at termination or settlement. Swaps are valued based on
prices quoted by independent brokers. These valuations represent the net present
value of all future cash settlement amounts based on implied forward interest
rates or index values.
As of April 30, 2008, the following Funds had open swap contracts:
Swap Notional Interest Rate/ Interest Rate/ Maturity Net Unrealized
FUND Counter Party Principal Index Received Index Paid Date Gain/(Loss)
- ---- --------------- ----------- --------------- -------------------------- ---------- --------------
OPPORTUNITY FUND Lehman Brothers $10,989,688 Market Value Notional Amount x 07/11/2008 $ (371,650)
Finance Appreciation (3 Months USD LIBOR)
on Customize plus Market Value
Stock Index* Appreciation on
Customized Stock Index*
OPPORTUNITY FUND Lehman Brothers $22,166,055 Market Value Notional Amount x 07/09/2008 $ (401,607)
Finance Appreciation (3 Months USD LIBOR
on Customize plus 30 bps) plus Market
Stock Index** Value Appreciation on
Customized Stock Index**
OPPORTUNITY FUND Lehman Brothers $ 8,139,074 Market Value Notional Amount x 10/30/2008 $ 2,356,251
Finance Appreciation (3 Months USD LIBOR
on Customize plus 30 bps) plus Market
Stock Index*** Value Appreciation on
Customized Stock Index***
OPPORTUNITY FUND Lehman Brothers $11,029,515 Market Value Notional Amount x 10/07/2008 $(1,357,552)
Finance Appreciation (3 Months USD LIBOR
on Customize 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, 2008: Carnival Corporation, Time Warner
Incorporated, UnitedHealth Group Incorporated, and Pfizer Incorporated.
** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: Bank of America Corporation, City National
Corporation, Marshall & IIsley Corporation, Metavante Technologies
Incorporated, Synovus Financial Corporation, TCF Financial Corporation, US
Bancorp, Wachovia Corporation, and Zions Bancorporation.
*** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: Rio Tinto plc and BHP Billiton Limited.
**** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: D.R. Horton Incorporated, KB Home, Toll
Brothers Incorporated, Pulte Homes Incorporated, and Ryland Group
Incorporated.
72 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
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 movements in interest or exchange rates or securities
values.
Written options transactions for the six-month period ended April 30, 2008, were
as follows:
SMALL/MID
OPPORTUNITY FUND MID CAP DISCIPLINEDFUND CAP VALUE FUND
-------------------- ----------------------- --------------------
Premiums Premiums Premiums
CALL OPTIONS WRITTEN Contracts Received Contracts Received Contracts Received
- ------------------------------ --------- --------- --------- ------------ --------- ---------
Options at beginning of period (900) $(287,996) 0 $ 0 (325) $(266,499)
Options written (280) (106,759) (24,185) (8,469,536) (400) (46,900)
Options terminated in closing
transactions 22,750 6,235,254 0 0
Options expired 900 287,996 0 0 0 0
Options exercised 280 106,759 0 0 325 266,499
Options at end of period 0 $ 0 (1,435) $(2,234,282) (400) $ (46,900)
SMALL/MID
CAP VALUE FUND
--------------------
Premiums
PUT OPTIONS WRITTEN Contracts Received
- ------------------------------ --------- ---------
Options at beginning of period (500) $(144,799)
Options written (400) (391,894)
Options terminated in closing
transactions 900 536,693
Options expired 0 0
Options exercised 0 0
Options at end of period 0 $ 0
Open written call and put option contracts as of April 30, 2008, are disclosed
in the Portfolio of Investments.
STRUCTURED INVESTMENT VEHICLES
The Funds may invest in structured debt securities, such as those issued by
Structured Investment Vehicles, or "SIVs". SIVs invest in a diversified pool of
underlying securities, which may include finance company debt and structured
finance assets, residential mortgage-backed securities, commercial
mortgage-backed securities, collateralized loan obligations, collateralized debt
obligations and other asset backed securities. The ability of a SIV to repay
debt depends primarily on the cash collections received from the SIV's
underlying asset portfolio, which may include certain assets such as subprime
mortgages that are subject to heightened risks of credit quality or market value
deterioration under the continuing adverse conditions in the U.S. credit
markets, and on the ability to obtain short-term funding through the issuance of
new debt. Investments in these securities present increased credit and liquidity
risks as there could be losses to a Fund in the event of credit or market value
deterioration in a SIV's underlying portfolio, mismatches in the timing of the
cash flows of the underlying asset interests and the repayment obligations of
maturing securities issued by a SIV, or a SIV's inability to issue new debt.
Wells Fargo Advantage Small and Mid Cap Stock Funds 73
Notes to Financial Statements
As of April 30, 2008, the following Funds owned certain of these types of SIVs
which are currently in default and valued at fair value in the Portfolio of
Investments or have been restructured following default, including the
percentage of each Fund's net assets invested in these securities:
Defaulted SIVs
PORTFOLIO ($Market Value) % of Net Assets
- -------------------------- --------------- ---------------
DISCOVERY FUND $ 4,438,744 1.17%
ENTERPRISE FUND 2,552,168 0.76%
MID CAP DISCIPLINED FUND 7,600,062 0.88%
OPPORTUNITY FUND 16,683,998 1.02%
SMALL CAP DISCIPLINED FUND 2,923,806 0.73%
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 Subadvisory
Fees (% of Fees (% of
Average Daily Average Daily Average Daily Average Daily
FUND Net Assets Net Assets) Subadviser Net Assets Net Assets)
- ---------------------------- ------------------ ------------- ------------- ------------------ -------------
DISCOVERY FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.350
Next $2 billion 0.625
Over $5 billion 0.600
ENTERPRISE FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
MID CAP DISCIPLINED FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
OPPORTUNITY FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
SMALL CAP DISCIPLINED FUND * First $500 million 0.850 Wells Capital First $100 million 0.550
Next $500 million 0.825 Management Next $100 million 0.500
Next $1 billion 0.800 Incorporated Over $200 million 0.400
Next $1 billion 0.775
Over $3 billion 0.750
74 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
Advisory Subadvisory
Fees (% of Fees (% of
Average Daily Average Daily Average Daily Average Daily
FUND Net Assets Net Assets) Subadviser Net Assets Net Assets)
- ---------------------------- ------------------ ------------- ------------- ------------------ -------------
SMALL/MID CAP VALUE FUND* First $500 million 0.850 Wells Capital First $100 million 0.450
Next $500 million 0.825 Management Next $100 million 0.400
Next $2 billion 0.800 Incoporated Over $200 million 0.350
Next $2 billion 0.775
Over $5 billion 0.750
* Effective March 1, 2008. Prior to March 1, 2008, Funds Management was
entitled to receive an annual fee at the following rates:
Advisory Fees
Average Daily (% of Average
FUND Net Assets Daily Net Assets)
- -------------------------- ------------------ -----------------
SMALL CAP DISCIPLINED FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
SMALL/MID CAP VALUE FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
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
Class A All asset levels 0.28
Class C All asset levels 0.28
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 0.40
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
Daily Net Assets
----------------
All Small and Mid Cap Stock Funds 0.02
Wells Fargo Advantage Small and Mid Cap Stock Funds 75
Notes to Financial Statements
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 C, Administrator Class, Advisor Class and Investor Class 0.25
For the period ended April 30, 2008, shareholder servicing fees paid were as
follows:
FUND Class A Class C Administrator Advisor Investor
- -------------------------- ------- ------- ------------- ------- ----------
DISCOVERY FUND $1,309 $1,064 $137,378 NA $ 322,964
ENTERPRISE FUND NA 2 6,976 $ 1,749 223,999
MID CAP DISCIPLINED FUND 217 106 132,013 NA 749,540
OPPORTUNITY FUND NA 2 174,151 45,392 1,844,212
SMALL CAP DISCIPLINED FUND 3 2 12,915 NA 344,054
SMALL/MID CAP VALUE FUND 3,099 713 44,498 NA 112,565
DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for 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 period ended April 30, 2008, 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.
Each Fund also bears its share of other fees and expenses incurred in the normal
course of business, including but not limited to: professional fees,
registration fees, shareholder reporting costs, and Trustees fees and expenses.
The Trust compensates its Trustees for their services, plus travel and other
expenses incurred in attending Board meetings.
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 through February 28,
2009, to waive fees and/or reimburse expenses to the extent necessary to
maintain a certain net operating expense ratio for the Funds. Net operating
expense ratios in effect for the six-month period ended April 30, 2008, were as
follows:
NET OPERATING EXPENSE RATIOS
-----------------------------------------------------------------
FUND Class A Class C Administrator Advisor Institutional Investor
- -------------------------- ------- ------- ------------- ------- ------------- --------
DISCOVERY FUND 1.33% 2.08% 1.15% N/A 0.95% 1.38%
ENTERPRISE FUND N/A 2.15% 1.15% 1.40% 0.90% 1.49%*
MID CAP DISCIPLINED FUND 1.25% 2.00% 1.15% N/A 0.90% 1.31%
OPPORTUNITY FUND N/A 2.04% 1.04% 1.29% N/A 1.35%
SMALL CAP DISCIPLINED FUND 1.45% 2.20% 1.20% N/A 1.00% 1.49%
SMALL/MID CAP VALUE FUND 1.40% 2.15% 1.15% N/A 0.95% 1.49%
* Effective February 29, 2008, the net operating expense ratio for the
Enterprise Fund Investor Class decreased from 1.57% to 1.49%. The blended
net operating expense ratio for the period ended April 30, 2008, for the
Enterprises Fund Investor Class is 1.54%.
76 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
4. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) for the
six-month period ended April 30, 2008, were as follows:
FUND Purchases at Cost Sales Proceeds
- -------------------------- ----------------- --------------
DISCOVERY FUND $260,875,553 $235,994,703
ENTERPRISE FUND 290,768,474 263,180,169
MID CAP DISCIPLINED FUND 656,396,358 969,526,513
OPPORTUNITY FUND 542,710,892 766,618,794
SMALL CAP DISCIPLINED FUND 161,306,865 199,602,060
SMALL/MID CAP VALUE FUND 44,549,311 48,037,800
5. BANK BORROWINGS
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the money
market funds) share in a revolving Credit Agreement with The Bank of New York,
whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line. For the period ended April 30, 2008, 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 $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 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, 2008, 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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 77
Notes to Financial Statements
In March 2008, the FASB issued Statement of Financial Accounting Standards 161
("FAS 161"), "Disclosures about Derivative Instruments and Hedging Activities-an
amendment of FASB Statement No. 133." FAS 161 requires additional discussion
about the reporting entity's derivative instruments and hedging activities, by
providing for qualitative disclosures about the objectives and strategies for
using derivatives, quantitative data about the fair value of and gains and
losses on derivative contracts, and details of credit-risk-related contingent
features in their hedged positions. FAS 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those years. As of April 30, 2008, Management is continuing to
evaluate the impact, if any, that adoption of FAS 161 may have on the financial
statements.
8. SUBSEQUENT EVENT
At its November 7, 2007 regular meeting, the Board unanimously approved
modifying certain share class names and features. The Advisor Class will be
renamed Class A shares and will be modified to assume the features and
attributes associated with Class A shares, including their exchange privileges.
These share class modifications are expected to take place by the end of the
third quarter of 2008. Additional information was provided to shareholders
approximately 60 days in advance of the modifications.
78 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 Portfolio, except money market funds,
are publicly available on the Funds' Web site
(WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or more delayed basis
and for money market funds, on a monthly, seven-day delayed basis. In addition,
top ten holdings information for each Portfolio is publicly available on the
Funds'Web site on a monthly, seven-day or more delayed basis. Each Portfolio
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(1) of each Portfolio. Each of the Trustees
listed below acts in identical capacities for each of the 146 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
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- ------------------ ------------------------- -------------------------------------------------------------- -------------------
Thomas S. Goho Trustee, since 1987 Co-Director for the Calloway School of Stephens University of None
65 Wake Forest University. Prior thereto, the Thomas Goho Chair
of Finance of Wake Forest University, Calloway School of
Business and Accountancy, from 2006-2007 and Associate
Professor of Finance from 1999-2005.
Peter G. Gordon Trustee, since 1998; Chairman, CEO and Co-Founder of Crystal Geyser Water Company None
65 Chairman, since 2005 and President of Crystal Geyser Roxane Water Company.
(Lead Trustee since 2001
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, Wharton School, None
55 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 President and CEO of Southern Minnesota Initiative Foundation, None
56 a non-profit organization since 2007 and Senior Fellow at the
Humphrey Institute Policy Forum at the University of Minnesota
since 1995.
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke & Daniels. None
67
Wells Fargo Advantage Small and Mid Cap Stock Funds 79
Other Information
INTERESTED TRUSTEE(3)
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- -------------------- ---------------------------------------------------------- -------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate Developer. Prior thereto, None
63 Chairman of Whitepoint Capital, LLC until 2004.
Officers
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- -------------------- -------------------- ---------------------------------------------------------- -------------------
Karla M. Rabusch President, since Executive Vice President of Wells Fargo Bank, N.A. and None
49 2003 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 Senior Vice President and Secretary of Wells Fargo Funds None
47 2000; Management, LLC since 2001. Vice President and Managing
Chief Legal Counsel, Senior Counsel of Wells Fargo Bank, N.A. since 1996.
since 2003
Stephen W. Leonhardt Treasurer, since Vice President and Manager of Fund Accounting, Reporting None
48 2007 and Tax for Wells Fargo Funds Management, LLC since 2007.
Director of Fund Administration and SEC Reporting for
TIAA-CREF from 2005 to 2007. Chief Operating Officer for
UMB Fund Services, Inc. from 2004 to 2005. Controller for
Sungard Transaction Networks from 2002 to 2004.
Debra Ann Early Chief Compliance Chief Compliance Officer of Wells Fargo Funds Management, None
43 Officer, since 2007 LLC since 2007. Chief Compliance Officer of Parnassus
Investments from 2005 to 2007. Chief Financial Officer of
Parnassus Investments from 2004 to 2007 and Senior Audit
Manager of PricewaterhouseCoopers LLP from 1998 to 2004.
- ----------
(1) The Statement of Additional Information includes additional information
about the 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.
(2) Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
(3) As of April 30, 2008, one of the six 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.
80 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 28, 2008, 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 28, 2008, meeting, the Trustees
conferred extensively among themselves and with representatives of Funds
Management about these matters. The Board also met throughout the year and
received information that was useful to them in considering the continuation of
the Advisory Agreements. 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. The
Board received and considered, among other things, information about the
background and experience of senior management of Funds Management and the
qualifications, backgrounds, tenures 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 financial condition, resources, reputation
and other attributes, to attract and retain 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, and the appointment of a new Chief Compliance
Officer for the Funds. 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 and Wells Capital
Management about various topics, including Funds Management's oversight of
service providers. 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 for each of the Funds over various time
periods ended December 31, 2007. The Board also considered these results in
comparison to the median performance of a universe of relevant funds that was
determined by Lipper Inc. ("Lipper") to be similar to the Funds (the
"Universe"), as well as to each Fund's benchmark index and to other comparative
data. Lipper is an independent provider of investment company data. The Board
was provided with a description of the methodology used by Lipper to select the
mutual funds in the Universe.
Wells Fargo Advantage Small and Mid Cap Stock Funds 81
Other Information
The Board noted that the performance of each Fund, except for the Mid Cap
Disciplined Fund, Opportunity Fund and Small Cap Disciplined Fund, was better
than the median performance of its Universe for all time periods. The Board
noted that the performance of the Mid Cap Disciplined Fund was lower than the
performance of its Universe for all time periods and that the performance of the
Opportunity Fund and Small Cap Disciplined Fund was lower than the performance
of each Fund's Universe for certain time periods and required further review. As
part of its further review, the Board received an analysis of, and discussed
factors contributing to, the underperformance of the Mid Cap Disciplined Fund,
Opportunity Fund and Small Cap Disciplined Fund. The Board requested continued
reports on the performance of the Mid Cap Disciplined Fund, Opportunity Fund and
Small Cap Disciplined Fund.
The Board received and considered information regarding each Fund's contractual
advisory fees, and net operating expense ratios and their various components,
including actual management fees, transfer agent, custodian and other
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 respective median fees of narrower groups of
funds that were determined by Lipper to be the most similar to the Funds (the
"Peer Group") and to other comparative data. The Board was provided with a
description of the methodology used by Lipper to select the mutual funds in the
Peer Group. 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 noted Funds Management's
recommendation to reduce the net operating expense ratios of certain share
classes 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 and other 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. 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 Funds
Management's recommendation to reduce administration fees for a share class of
the 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 also considered related information provided by
Funds Management in a separate presentation on financial matters made at the
February 2008 board meeting. 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 separate profitability information with respect to Wells
Capital Management, as its profitability from its relationship with the Funds
was not a material factor in determining whether to renew the agreement.
82 Wells Fargo Advantage Small and Mid Cap Stock Funds
Other Information
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
separate presentations on advisory fee breakpoints and economies of scale made
at the February 2008 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.
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 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 channels.
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 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.
Wells Fargo Advantage Small and Mid Cap Stock Funds 83
List of Abbreviations
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
THIS PAGE IS INTENTIONALLY LEFT BLANK.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
(WELLS FARGO LOGO)
ADVANTAGE FUNDS
More information about WELLS FARGO ADVANTAGE FUNDS is available free upon
request. To obtain literature, please write, e-mail, visit the Funds' Web site,
or call:
WELLS FARGO ADVANTAGE FUNDS
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com
Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF WELLS FARGO ADVANTAGE FUNDS. IF THIS
REPORT IS USED FOR PROMOTIONAL PURPOSES, DISTRIBUTION OF THE REPORT MUST BE
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR A PROSPECTUS CONTAINING
MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-222-8222
OR VISIT THE 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 FINRAI/SIPC, an affiliate of Wells Fargo &
Company.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(C) 2008 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
110492 06-07
SMCNLD/SAR123 04-08
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 23, 2008
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 23, 2008
By: /s/ Stephen W. Leonhardt
Stephen W. Leonhardt
Treasurer
Date: June 23, 2008
CERTIFICATION
I, Karla M. Rabusch, certify that:
1.I have reviewed this report on Form N-CSR of Wells Fargo Funds Trust on behalf
of the following series: Wells Fargo Advantage Specialized Financial Services
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 23, 2008
/s/ Karla M. Rabusch
- -------------------------------------
Karla M. Rabusch
President
Wells Fargo Funds Trust
CERTIFICATION
I, Stephen W. Leonhardt, certify that:
1. I have reviewed this report on Form N-CSR of Wells Fargo Funds Trust on
behalf of the following series: Wells Fargo Advantage Specialized Financial
Services 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 23, 2008
/s/ Stephen W. Leonhardt
- -------------------------------------
Stephen W. Leonhardt
Treasurer
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 her knowledge, that
the Trust's report on Form N-CSR for the period ended April 30, 2008 (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 23, 2008
/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, 2008 (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 23, 2008
/s/ Stephen W. Leonhardt
Stephen W. Leonhardt
Treasurer
Wells Fargo Funds Trust