UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo Funds Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-643-9691
Date of fiscal year end: June 30, 2010
Date of reporting period: December 31, 2009
ITEM 1. REPORT TO SHAREHOLDERS
===============================
(WELLS FARGO ADVANTAGE FUNDS LOGO)
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(GRAPHIC)
Semi-Annual Report
December 31, 2009
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
- - WELLS FARGO ADVANTAGE CALIFORNIA LIMITED-TERM TAX-FREE FUND
- - WELLS FARGO ADVANTAGE CALIFORNIA TAX-FREE FUND
- - WELLS FARGO ADVANTAGE COLORADO TAX-FREE FUND
- - WELLS FARGO ADVANTAGE MINNESOTA TAX-FREE FUND
REDUCE CLUTTER. SAVE TREES.
Sign up for electronic delivery of
prospectuses and shareholder reports at
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Contents
LETTER TO SHAREHOLDERS ................................................... 2
PERFORMANCE HIGHLIGHTS
California Limited-Term Tax-Free Fund .................................... 6
California Tax-Free Fund ................................................. 8
Colorado Tax-Free Fund ................................................... 10
Minnesota Tax-Free Fund .................................................. 12
FUND EXPENSES ............................................................ 14
PORTFOLIO OF INVESTMENTS
California Limited-Term Tax-Free Fund .................................... 16
California Tax-Free Fund ................................................. 25
Colorado Tax-Free Fund ................................................... 32
Minnesota Tax-Free Fund .................................................. 35
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ..................................... 40
Statements of Operations ................................................. 41
Statements of Changes in Net Assets ...................................... 42
Financial Highlights ..................................................... 46
NOTES TO FINANCIAL STATEMENTS ............................................ 52
OTHER INFORMATION ........................................................ 59
LIST OF ABBREVIATIONS .................................................... 61
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
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 110 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)
WELLS FARGO ADVANTAGE FUNDS skillfully guides institutions, financial advisors,
and individuals through the investment terrain to help them reach their
financial objectives. Everything we do on behalf of our investors is backed by
our unique combination of qualifications.
STRENGTH
Our organization is built on the standards of integrity and service established
by our parent company--Wells Fargo & Company--more than 150 years ago. Our
diverse family of mutual funds covers a broad spectrum of investment styles and
asset classes. And, because we're part of a widely diversified financial
enterprise, we offer the scale and resources to help investors succeed,
providing access to complementary solutions such as separately managed accounts,
college investing plans, and retirement plans.
EXPERTISE
Our approach to investing is guided by the belief that agile, independent
investment teams--each with its own distinct strengths and disciplines--provide
a superior level of insight and expertise. Each team is free to concentrate on
managing money through well-defined philosophies and processes that have proven
to be consistent and repeatable over time.
PARTNERSHIP
Our collaborative approach is built around understanding the needs and goals of
our clients. By adhering to core principles of sound judgment and steady
guidance, we support you through every stage of the investment decision process.
FOR 529 PLANS, AN INVESTOR'S OR A DESIGNATED BENEFICIARY'S HOME STATE MAY OFFER
STATE TAX OR OTHER BENEFITS THAT ARE ONLY AVAILABLE FOR INVESTMENTS IN THAT
STATE'S QUALIFIED TUITION PROGRAM. PLEASE CONSIDER THIS BEFORE INVESTING.
CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES
BEFORE INVESTING. FOR A CURRENT PROSPECTUS FOR WELLS FARGO ADVANTAGE FUNDS OR A
CURRENT PROGRAM DESCRIPTION FOR CERTAIN 529 COLLEGE SAVINGS PLANS, CONTAINING
THIS AND OTHER INFORMATION, VISIT WWW.WELLSFARGO.COM/ADVANTAGEFUNDS. READ IT
CAREFULLY BEFORE INVESTING.
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory and administrative services for Wells
Fargo Managed Account Services and WELLS FARGO ADVANTAGE FUNDS(R) and to certain
529 college savings plans. Other affiliates of Wells Fargo & Company provide
subadvisory and other services for the Funds. The Funds and shares in the 529
plans are distributed by WELLS FARGO FUNDS DISTRIBUTOR, LLC, Member FINRA/SIPC,
an affiliate of Wells Fargo & Company.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
NOT PART OF THE SEMI-ANNUAL REPRT
WELLS FARGO ADVANTAGE FUNDS OFFERS MORE THAN 110 MUTUAL FUNDS ACROSS A WIDE
RANGE OF ASSET CLASSES, REPRESENTING OVER $170 BILLION IN ASSETS UNDER
MANAGEMENT, AS OF DECEMBER 31, 2009.
EQUITY FUNDS
Asia Pacific Fund
C&B Large Cap Value Fund
C&B Mid Cap Value Fund
Capital Growth Fund
Common Stock Fund
Discovery Fund+
Diversified Equity Fund
Diversified Small Cap Fund
Emerging Growth Fund
Emerging Markets Equity Fund
Endeavor Select Fund+
Enterprise Fund+
Equity Income Fund
Equity Value Fund
Growth Fund
Growth Equity Fund
Index Fund
International Core Fund
International Equity Fund
International Value Fund
Large Cap Appreciation Fund
Large Cap Growth Fund
Large Company Core Fund
Large Company Growth Fund
Large Company Value Fund
Mid Cap Disciplined Fund
Mid Cap Growth Fund
Opportunity Fund+
Small Cap Disciplined Fund
Small Cap Growth Fund
Small Cap Opportunities Fund
Small Cap Value Fund
Small Company Growth Fund
Small Company Value Fund
Small/Mid Cap Value Fund
Social Sustainability Fund+
Specialized Financial Services Fund
Specialized Technology Fund
U.S. Value Fund
BOND FUNDS
California Limited-Term Tax-Free Fund
California Tax-Free Fund
Colorado Tax-Free Fund
Diversified Bond Fund
Government Securities Fund(1)
High Income Fund
Income Plus Fund
Inflation-Protected Bond Fund
Intermediate Tax/AMT-Free Fund
Minnesota Tax-Free Fund
Municipal Bond Fund
Short Duration Government Bond Fund(1)
Short-Term Bond Fund
Short-Term High Yield Bond Fund
Short-Term Municipal Bond Fund
Stable Income Fund
Strategic Income Fund
Total Return Bond Fund
Ultra Short-Term Income Fund
Ultra Short-Term Municipal Income Fund
Wisconsin Tax-Free Fund
ASSET ALLOCATION FUNDS
Aggressive Allocation Fund
Asset Allocation Fund
Conservative Allocation Fund
Growth Balanced Fund
Moderate Balanced Fund
WealthBuilder Conservative Allocation Portfolio+
WealthBuilder Equity Portfolio+
WealthBuilder Growth Allocation Portfolio+
WealthBuilder Growth Balanced Portfolio+
WealthBuilder Moderate Balanced Portfolio+
WealthBuilder Tactical Equity Portfolio+
Target Today Fund(2)+
Target 2010 Fund(2)+
Target 2015 Fund(2)+
Target 2020 Fund(2)+
Target 2025 Fund(2)+
Target 2030 Fund(2)+
Target 2035 Fund(2)+
Target 2040 Fund(2)+
Target 2045 Fund(2)+
Target 2050 Fund(2)+
MONEY MARKET FUNDS
100% Treasury Money Market Fund(1)
California Municipal Market Fund
California Municipal Market Trust
Cash Investment Money Market Fund
Government Money Market Fund(1)
Heritage Money Market Fund+
Minnesota Money Market Fund
Money Market Fund
Money Market Trust
Municipal Money Market Fund
National Tax-Free Money Market Fund
National Tax-Free Money Market Trust
Overland Express Sweep Fund+
Prime Investment Money Market Fund
Treasury Plus Money Market Fund(1)
VARIABLE TRUST FUNDS(3)
VT Asset Allocation Fund
VT C&B Large Cap Value Fund
VT Discovery Fund+
VT Equity Income Fund
VT International Core Fund
VT Large Company Core Fund
VT Large Company Growth Fund
VT Money Market Fund
VT Opportunity Fund+
VT Small Cap Growth Fund
VT Small/Mid Cap Value 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.
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(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.
+ In this report, the WELLS FARGO ADVANTAGE DISCOVERY FUND(SM), WELLS FARGO
ADVANTAGE ENDEAVOR SELECT FUND(SM), WELLS FARGO ADVANTAGE ENTERPRISE
FUNDSM, WELLS FARGO ADVANTAGE OPPORTUNITY FUND(SM), WELLS FARGO ADVANTAGE
SOCIAL SUSTAINABILITY FUND(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER
CONSERVATIVE ALLOCATION PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER
EQUITY PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER GROWTH ALLOCATION
PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER GROWTH BALANCED
PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER MODERATE BALANCED
PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER TACTICAL EQUITY
PORTFOLIO(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET TODAY FUND(SM), WELLS
FARGO ADVANTAGE DOW JONES TARGET 2010 FUND(SM), WELLS FARGO ADVANTAGE DOW
JONES TARGET 2015 FUND(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET 2020
FUND(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET 2025 FUND(SM), WELLS FARGO
ADVANTAGE DOW JONES TARGET 2030 FUND(SM), WELLS FARGO ADVANTAGE DOW JONES
TARGET 2035 FUND(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET 2040 FUND(SM),
WELLS FARGO ADVANTAGE DOW JONES TARGET 2045 FUND(SM), WELLS FARGO ADVANTAGE
DOW JONES TARGET 2050 FUND(SM), WELLS FARGO ADVANTAGE HERITAGE MONEY MARKET
FUND(SM), WELLS FARGO ADVANTAGE OVERLAND EXPRESS SWEEP FUND(SM), WELLS
FARGO ADVANTAGE VT DISCOVERY FUND(SM), and WELLS FARGO ADVANTAGE VT
OPPORTUNITY FUND(SM) are referred to as the Discovery Fund, Endeavor Select
Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund,
WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity
Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth
Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio,
WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010
Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030
Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050
Fund, Heritage Money Market Fund, Overland Express Sweep Fund, VT Discovery
Fund, and VT Opportunity Fund, respectively.
NOT PART OF THE SEMI-ANNUAL REPRT
2 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Letter to Shareholders
(PHOTO OF KARLA M. RABUSCH)
KARLA M. RABUSCH,
President
WELLS FARGO ADVANTAGE FUNDS
IN GENERAL, MUNICIPAL SECURITIES PERFORMED WELL OVER THE RECENT SIX-MONTH
PERIOD, BENEFITING FROM BOTH THE LOW YIELDS IN U.S. TREASURIES AND THE BUILD
AMERICA BOND PROGRAM, WHICH REDUCED THE SUPPLY OF TAX-EXEMPT MUNICIPAL DEBT.
INVESTORS SOUGHT TAX-EXEMPT MUNICIPAL BONDS FOR THEIR HIGHER LEVELS OF RELATIVE
YIELD COMPARED WITH U.S. TREASURIES AND THEIR TAX-EXEMPTION BENEFITS.
Dear Valued Shareholder,
We are pleased to offer you this semi-annual report for the Wells Fargo
Advantage Municipal Funds that covers the six-month period that ended December
31, 2009. During the recent six-month period, fixed-income markets continued to
show strong signs of improvement, resulting in positive returns in nearly every
sector of the fixed-income markets. In general, municipal securities performed
well over the recent six-month period, benefiting from both the low yields in
U.S. Treasuries and the Build America Bond program, which reduced the supply of
tax-exempt municipal debt. Investors sought tax-exempt municipal bonds for their
higher levels of relative yield compared with U.S. Treasuries and their
tax-exemption benefits.
The most notable returns among fixed-income asset classes during the recent
six-month period came from the lower-quality credit sectors, as investor
confidence strengthened throughout 2009. The riskier areas of the fixed-income
markets provided some of the best returns during the period. In municipal bonds,
the BBB-rated(1) sub-index of the Barclays Capital Municipal Bond Index returned
9% during the six-month period, while the AAA-rated(1) sub-index returned the
least of the investment-grade municipal credit tiers, with a 4% return. Each
respective lower-quality credit tier performed better than the one above it. The
Barclays Capital U.S. Treasury Index returned less than 1% during the period.
Markets ended the period with a considerable improvement in investor confidence
and in the overall health of the credit system--compared with the cautious and
somewhat hesitant optimism from earlier in 2009. Fixed-income investors were
generally rewarded well for their risk appetites over the six-month period. As
the period came to a close, investors appeared less concerned with the risks of
a deepening recession and more focused on the potential for increasing interest
rates in the upcoming year.
MUNICIPAL BOND MARKETS OUTPERFORMED U.S. TREASURIES IN THE RECENT SIX-MONTH
PERIOD.
In the early months of 2009, investors were still wary of market risks,
deepening economic declines, and whether government interventions would be
effective in bolstering the financial system. Whether economic conditions would
improve in the near term was not as important to the markets as the basic
understanding that they would likely not get any worse. Once that confidence was
established, financial markets improved considerably, particularly in the
lower-quality areas of the fixed-income markets. Several securities that had
been priced for the worst-case scenarios became attractively undervalued in the
assessment of many investors, and those trends continued through much of the
recent six-month period.
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Ratings from A to CCC may be modified by the
addition of a plus (+) or minus (-) sign to show relative standing within
the rating categories. Moody's rates the creditworthiness of bonds, ranging
from Aaa (highest) to CC (lowest). Ratings Aa to B may be modified by the
addition of a number 1 (highest) to 3 (lowest) to show relative standing
within the ratings categories. Fitch rates the creditworthiness of bonds,
ranging from AAA (highest) to D (lowest).
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 3
Letter to Shareholders
The six-month period that ended December 31, 2009, was one of continued
strengthening in the credit markets that began in the spring of 2009. Even
though a broad and convincing rally had already occurred in the first half of
2009, the second half was equally as impressive in many areas, including across
municipal bonds. The Barclays Capital Municipal Bond Index returned 6.10% over
the recent six-month period, which was almost equal to the 6.43% it returned in
the first half of 2009. By comparison, U.S. Treasuries returned less than 1%
over the recent six-month period and lost more than 3% over the entire year of
2009. Thus, returns in the municipal bond markets were fairly generous over the
recent six-month period when compared with U.S. Treasuries, and also in
consideration of the low overnight interest-rate environment with a federal
funds rate less than 0.25%.
INVESTOR SENTIMENTS ARE MUCH IMPROVED FROM A YEAR AGO.
Investor confidence in the municipal bond markets appeared to strengthen during
the six-month period, particularly through the first three months of the period,
before slowing down a bit in October. Nonetheless, the month of September 2009
looked quite different from September 2008, when the recent credit crisis
erupted. Performance in the municipal bond markets over the six-month period was
a strong indication of just how far markets have recovered from the 2008 credit
crisis. Much of the strong returns from municipal bonds have been at least
partially inspired by extensive government intervention to bolster the credit
system in the form of stimulus programs and monetary-easing measures. This
cannot be expected to go on indefinitely. The next question in most investors'
minds is what the economic landscape will look like when these government
programs begin to unwind. That is a primary topic of speculation as we move into
a cooler season and a potentially frostier climate of slowly unwinding monetary
and fiscal accommodation.
It is probably unreasonable to expect the same strong levels of performance from
the municipal bond markets during the recent six-month period to go on
indefinitely. However, this does not necessarily mean that municipal bonds will
be unable to generate attractive levels of return in a rising-interest-rate
environment. Areas of the fixed-income markets may have to throttle down a bit
in the upcoming quarters but, in our view, not completely capitulate to a
rising-rate environment. In our opinion, diligent and earnest assessment of the
fundamental risks in individual municipal securities will be a key
differentiating factor between which investment strategies perform well and
which do not. At Wells Fargo Advantage Funds(R), we intend to continue measuring
relative-value opportunities throughout the municipal bond markets and across
our lineup of Wells Fargo Municipal Funds. We believe it is particularly
important to have diligent investment analysts in charge of fund assets in
changing markets, such as the ones investors have experienced over the past
several quarters. As evidenced by the performance of municipal securities during
the recent six-month period, heightened risks also often accompany
opportunities.
IN OUR OPINION, DILIGENT AND EARNEST ASSESSMENT OF THE FUNDAMENTAL RISKS IN
INDIVIDUAL MUNICIPAL SECURITIES WILL BE A KEY DIFFERENTIATING FACTOR BETWEEN
WHICH INVESTMENT STRATEGIES PERFORM WELL AND WHICH DO NOT.
DON'T LET SHORT-TERM VOLATILITY DERAIL LONG-TERM INVESTMENT GOALS.
The recent six-month period demonstrated improving confidence in municipal
securities but also extended a somewhat more volatile period than typical for
the fixed-income markets. While volatility can present challenges, experience
has taught us that maintaining a long-term investment strategy based on
individual
4 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Letter to Shareholders
goals and risk tolerance can be an effective way to plan for the future. As a
whole, WELLS FARGO ADVANTAGE FUNDS represents investments across a broad range
of asset classes and investment styles, giving you an opportunity to create a
diversified investment portfolio. 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 110 Funds that cover a broad spectrum of investment styles and asset
classes.
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
THIS PAGE IS INTENTIONALLY LEFT BLANK.
6 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Performance Highlights
WELLS FARGO ADVANTAGE CALIFORNIA LIMITED-TERM TAX-FREE FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE CALIFORNIA LIMITED-TERM TAX-FREE FUND (THE FUND) seeks
current income exempt from federal income tax and California individual income
tax, consistent with capital preservation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Stephen Galiani
Adrian Van Poppel
FUND INCEPTION
November 18, 1992
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
A (43%)
AA (13%)
AAA (19%)
BBB (10%)
Cash (7%)
Unrated (8%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
1-3 Years (24%)
5-10 Years (16%)
10-20 Years (4%)
20+ Years (1%)
0-1 Year (25%)
3-5 Years (30%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Standard and Poor's rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to
CCC may be modified by the addition of a plus (+) or minus (-) sign to show
relative standing within the rating categories. Moody's rates the
creditworthiness of bonds, ranging from Aaa (highest) to CC (lowest).
Moody's rates the creditworthiness of short-term US tax-exempt municipal
securities from MIG-1/VMIG-1 (highest) to SG (lowest). Ratings Aa to B may
be modified by the addition of a number 1 (highest) to 3 (lowest) to show
relative standing within the ratings categories. Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit
quality is subject to change and is calculated based on the total
investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 7
Performance Highlights
WELLS FARGO ADVANTAGE CALIFORNIA LIMITED-TERM TAX-FREE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge Expense Ratio
CALIFORNIA LIMITED-TERM ------------------------------------- ------------------------------------- -----------------
TAX-FREE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ----------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (SFCIX) 0.26 5.12 2.50 3.43 3.37 8.38 3.13 3.75 0.95% 0.85%
Class C (SFCCX) 1.97 6.67 2.37 2.93 2.97 7.67 2.37 2.93 1.69% 1.60%
Administrator Class (SCTIX) 3.53 8.73 3.40 4.00 0.87% 0.60%
Barclays Capital 3-Year Municipal Bond Index(6) 2.75 5.78 4.03 4.40
* 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 3.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 California and Puerto Rico municipal securities
risk, high-yield securities risk, and nondiversification risk. Consult the
Fund's prospectus for additional information on these and other risks. A portion
of the Fund's income may be subject to federal, state, and/or local income taxes
or the alternative minimum tax (AMT). Any capital gains distributions may be
taxable.
- ----------
(3.) Performance shown prior to the inception of Class C shares on August 30,
2002, reflects the performance of the Class A shares, adjusted to reflect
Class C sales charges and expenses.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital 3-Year Municipal Bond Index is the 3-year component of the
Barclays Capital Municipal Bond Index, which is an unmanaged index composed
of long-term tax-exempt bonds with a minimum credit rating of Baa. You
cannot invest directly in an Index.
8 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Performance Highlights
WELLS FARGO ADVANTAGE CALIFORNIA TAX-FREE FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE CALIFORNIA TAX-FREE FUND (THE FUND) SEEKS CURRENT
INCOME EXEMPT FROM FEDERAL INCOME TAX AND CALIFORNIA INDIVIDUAL INCOME TAX.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Stephen Galiani
Adrian Van Poppel
FUND INCEPTION
October 6, 1988
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
A (40%)
AA (18%)
AAA (24%)
BBB (10%)
BB/Ba (1%)
Cash (2%)
Unrated (5%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
1-3 Years (2%)
5-10 Years (15%)
20+ Years (21%)
0-1 Year (11%)
3-5 Years (3%)
10-20 Years (48%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Standard and Poor's rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to
CCC may be modified by the addition of a plus (+) or minus (-) sign to show
relative standing within the rating categories. Moody's rates the
creditworthiness of bonds, ranging from Aaa (highest) to CC (lowest).
Moody's rates the creditworthiness of short-term US tax-exempt municipal
securities from MIG-1/VMIG-1 (highest) to SG (lowest). Ratings Aa to B may
be modified by the addition of a number 1 (highest) to 3 (lowest) to show
relative standing within the ratings categories. Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit
quality is subject to change and is calculated based on the total
investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 9
Performance Highlights
WELLS FARGO ADVANTAGE CALIFORNIA TAX-FREE FUND (continued)
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
CALIFORNIA TAX-FREE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(3) Net(4)
- ------------------------ --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (SCTAX) 1.97 10.26 2.54 4.70 6.79 15.43 3.48 5.18 0.88% 0.80%
Class B** (SGCBX) 1.40 9.56 2.37 4.60 6.40 14.56 2.73 4.60 1.64% 1.55%
Class C (SCTCX) 5.30 13.57 2.69 4.37 6.30 14.57 2.69 4.37 1.63% 1.55%
Administrator Class (SGCAX) 7.02 15.80 3.76 5.42 0.81% 0.55%
Barclays Capital Municipal Bond Index(5) 6.10 12.91 4.32 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 4.50%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 California
municipal securities risk, high-yield securities risk, and nondiversification
risk. Consult the Fund's prospectus for additional information on these and
other risks. A portion of the Fund's income may be subject to federal, state,
and/or local income taxes or the alternative minimum tax (AMT). Any capital
gains distributions may be taxable.
- ----------
(3.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(4.) The investment adviser has contractually committed through October 31,
2010, 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.
(5.) Barclays Capital Municipal Bond Index is an unmanaged index composed of
long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot
invest directly in an Index.
10 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Performance Highlights
WELLS FARGO ADVANTAGE COLORADO TAX-FREE FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE COLORADO TAX-FREE FUND (THE FUND) SEEKS CURRENT INCOME
EXEMPT FROM FEDERAL INCOME TAX AND COLORADO INDIVIDUAL INCOME TAX.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Stephen Galiani
Adrian Van Poppel
FUND INCEPTION
June 1, 1993
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
A (35%)
AA (24%)
AAA (14%)
BBB (5%)
Cash (11%)
Unrated (11%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
1-3 Years (12%)
5-10 Years (10%)
20+ Years (19%)
0-1 Year (18%)
10-20 Years (41%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Ratings from A to CCC may be modified by the
addition of a plus (+) or minus (-) sign to show relative standing within
the rating categories. Moody's rates the creditworthiness of bonds, ranging
from Aaa (highest) to CC (lowest). Ratings Aa to B may be modified by the
addition of a number 1 (highest) to 3 (lowest) to show relative standing
within the ratings categories. Fitch rates the creditworthiness of bonds,
ranging from AAA (highest) to D (lowest). Credit quality is subject to
change and is calculated based on the total investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 11
Performance Highlights
WELLS FARGO ADVANTAGE COLORADO TAX-FREE FUND (continued)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
COLORADO TAX-FREE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ---------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (NWCOX) 1.35 8.13 2.24 4.83 6.13 13.22 3.19 5.31 1.01% 0.85%
Class B** (NWCBX) 0.62 7.36 2.05 4.75 5.62 12.36 2.42 4.75 1.75% 1.60%
Class C (WCOTX) 4.73 11.39 2.41 4.51 5.73 12.39 2.41 4.51 1.74% 1.60%
Administrator Class (NCOTX) 6.26 13.50 3.44 5.49 0.93% 0.60%
Barclays Capital Municipal Bond Index(6) 6.10 12.91 4.32 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 4.50%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 Colorado
municipal securities risk, high-yield securities risk, and nondiversification
risk. Consult the Fund's prospectus for additional information on these and
other risks. A portion of the Fund's income may be subject to federal, state,
and/or local income taxes or the alternative minimum tax (AMT). Any capital
gains distributions may be taxable.
- ----------
(3.) Performance shown prior to the inception of the Class C shares on March 31,
2008, reflects the performance of the Class B shares and is adjusted to
reflect Class C sales charges and expenses.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital Municipal Bond Index is an unmanaged index composed of
long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot
invest directly in an Index.
12 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Performance Highlights
WELLS FARGO ADVANTAGE MINNESOTA TAX-FREE FUND
INVESTMENT OBJECTIVE
The Wells Fargo Advantage Minnesota Tax-Free Fund (the Fund) seeks current
income exempt from federal income tax and Minnesota individual income tax.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Julio C. Bonilla, CFA
Wendy Casetta
Adrian Van Poppel
FUND INCEPTION
January 12, 1988
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
A (28%)
AA (32%)
AAA (18%)
BBB (9%)
Cash (2%)
Unrated (11%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
1-3 Years (10%)
5-10 Years (23%)
20+ Years (15%)
0-1 Year (7%)
3-5 Years (4%)
10-20 Years (41%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Ratings from A to CCC may be modified by the
addition of a plus (+) or minus (-) sign to show relative standing within
the rating categories. Moody's rates the creditworthiness of bonds, ranging
from Aaa (highest) to CC (lowest). Ratings Aa to B may be modified by the
addition of a number 1 (highest) to 3 (lowest) to show relative standing
within the ratings categories. Fitch rates the creditworthiness of bonds,
ranging from AAA (highest) to D (lowest). Credit quality is subject to
change and is calculated based on the total investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 13
Performance Highlights
WELLS FARGO ADVANTAGE MINNESOTA TAX-FREE FUND (continued)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
MINNESOTA TAX-FREE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ----------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (NMTFX) 0.40 7.27 2.68 4.85 5.13 12.32 3.63 5.33 0.98% 0.85%
Class B** (NWMBX) (0.26) 6.60 2.50 4.78 4.74 11.60 2.86 4.78 1.73% 1.60%
Class C (WMTCX) 3.74 10.60 2.85 4.54 4.74 11.60 2.85 4.54 1.69% 1.60%
Administrator Class (NWMIX) 5.27 12.72 3.89 5.52 0.90% 0.60%
Barclays Capital Municipal Bond Index(6) 6.10 12.91 4.32 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 4.50%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 Minnesota
municipal securities risk, high-yield securities risk, and nondiversification
risk. Consult the Fund's prospectus for additional information on these and
other risks. A portion of the Fund's income may be subject to federal, state,
and/or local income taxes or the alternative minimum tax (AMT). Any capital
gains distributions may be taxable.
- ----------
(3.) Performance shown prior to the inception of Class C shares on April 11,
2005, reflects the performance of the Class A shares, adjusted to reflect
Class C sales charges and expenses.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital Municipal Bond Index is an unmanaged index composed of
long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot
invest directly in an Index.
14 WELLS FARGO ADVANTAGE MUNICIPAL INCOME 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 July 1, 2009 to
December 31, 2009.
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
California Limited-Term Tax-Free Fund 07-01-2009 12-31-2009 the Period(1) Expense Ratio
- ------------------------------------- ------------- ------------- ------------- -------------
CLASS A
Actual $1,000.00 $1,033.70 $4.36 0.85%
Hypothetical (5% return before expenses) $1,000.00 $1,020.92 $4.33 0.85%
CLASS C
Actual $1,000.00 $1,029.70 $8.19 1.60%
Hypothetical (5% return before expenses) $1,000.00 $1,017.14 $8.13 1.60%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,035.30 $3.08 0.60%
Hypothetical (5% return before expenses) $1,000.00 $1,022.18 $3.06 0.60%
CALIFORNIA TAX-FREE FUND
CLASS A
Actual $1,000.00 $1,067.90 $4.17 0.80%
Hypothetical (5% return before expenses) $1,000.00 $1,021.17 $4.08 0.80%
CLASS B
Actual $1,000.00 $1,064.00 $8.06 1.55%
Hypothetical (5% return before expenses) $1,000.00 $1,017.39 $7.88 1.55%
CLASS C
Actual $1,000.00 $1,063.00 $8.06 1.55%
Hypothetical (5% return before expenses) $1,000.00 $1,017.39 $7.88 1.55%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,070.20 $2.87 0.55%
Hypothetical (5% return before expenses) $1,000.00 $1,022.43 $2.80 0.55%
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 15
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
COLORADO TAX-FREE FUND 07-01-2009 12-31-2009 the Period(1) Expense Ratio
- ---------------------- ------------- ------------- ------------- -------------
CLASS A
Actual $1,000.00 $1,061.30 $4.42 0.85%
Hypothetical (5% return before expenses) $1,000.00 $1,020.92 $4.33 0.85%
CLASS B
Actual $1,000.00 $1,056.20 $8.29 1.60%
Hypothetical (5% return before expenses) $1,000.00 $1,017.14 $8.13 1.60%
CLASS C
Actual $1,000.00 $1,057.30 $8.30 1.60%
Hypothetical (5% return before expenses) $1,000.00 $1,017.14 $8.13 1.60%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,062.60 $3.12 0.60%
Hypothetical (5% return before expenses) $1,000.00 $1,022.18 $3.06 0.60%
MINNESOTA TAX-FREE FUND
CLASS A
Actual $1,000.00 $1,051.30 $4.39 0.85%
Hypothetical (5% return before expenses) $1,000.00 $1,020.92 $4.33 0.85%
CLASS B
Actual $1,000.00 $1,047.40 $8.26 1.60%
Hypothetical (5% return before expenses) $1,000.00 $1,017.14 $8.13 1.60%
CLASS C
Actual $1,000.00 $1,047.40 $8.26 1.60%
Hypothetical (5% return before expenses) $1,000.00 $1,017.14 $8.13 1.60%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,052.70 $3.10 0.60%
Hypothetical (5% return before expenses) $1,000.00 $1,022.18 $3.06 0.60%
- ----------
(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).
16 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
Municipal Bonds & NOTES: 91.69%
CALIFORNIA: 87.31%
$ 895,000 ALAMEDA CONTRA COSTA CA TRANSIT DISTRICT FHR
COMPUTER SYSTEM PROJECT (LEASE REVENUE) 4.00% 08/01/2012 $ 919,058
1,385,000 ALAMEDA COUNTY CA COP REFUNDING SERIES A (LEASE REVENUE, NATL-RE INSURED) 5.38 12/01/2015 1,438,475
525,000 ALAMEDA COUNTY CA COP SANTA RITA JAIL SERIES A (LEASE REVENUE, AMBAC INSURED) 5.63 12/01/2014 598,075
200,000 ALAMEDA COUNTY CA COP SERIES A (LEASE REVENUE, NATL-RE INSURED) 5.38 12/01/2010 205,738
700,000 ALISAL CA USD 2006 ELECTION SERIES A (PROPERTY TAX REVENUE, ASSURED GUARANTY) 5.50 08/01/2013 792,603
200,000 ANAHEIM CA CITY SCHOOL DISTRICT (PROPERTY TAX REVENUE, NATL-RE FGIC INSURED) 3.25 08/01/2010 202,808
1,600,000 ANAHEIM CA PFA CONVENTION CENTER PROJECT SERIES A (LEASE REVENUE,
AMBAC INSURED) 5.25 08/01/2013 1,680,944
500,000 ANAHEIM CA PFA PUBLIC IMPROVEMENTS PROJECT SERIES C (LEASE REVENUE,
AGM INSURED) 6.00 09/01/2014 576,685
900,000 ANTELOPE VALLEY CA HEALTH CARE DISTRICT SERIES A (HCFR, AGM INSURED) 5.20 01/01/2017 900,441
700,000 ATASCADERO CA USD COP MEASURE B CAPITAL PROJECTS SERIES A (LEASE REVENUE,
NATL-RE INSURED) 5.38 08/01/2010 701,813
500,000 BALDWIN PARK CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE)## 4.56 08/01/2014 405,670
50,000 BALDWIN PARK CA USD CAPITAL APPRECIATION ELECTION OF 2006
(PROPERTY TAX REVENUE, AGM INSURED)## 1.60 08/01/2012 48,000
200,000 BERKELEY CA PENSION (OTHER REVENUE, AMBAC INSURED) 4.70 06/01/2011 202,646
750,000 BREA CA PFA TAX ALLOCATION SERIES A (HOUSING REVENUE) 5.00 09/01/2012 765,135
200,000 BRENTWOOD CA USD ELECTION 1997 SERIES E (PROPERTY TAX REVENUE,
NATL-RE FGIC INSURED) 4.00 08/01/2012 202,326
1,260,000 CALAVERAS COUNTY CA COMMUNITY FACILITIES DISTRICT # 2 (TAX REVENUE) 7.00 09/01/2026 1,399,293
500,000 CALIFORNIA HFA AMT HOME MORTGAGE SERIES A (HOUSING REVENUE, AGM INSURED) 3.50 02/01/2012 499,760
400,000 CALIFORNIA HFA AMT HOME MORTGAGE SERIES A (HOUSING REVENUE, AGM INSURED) 3.60 08/01/2012 400,012
940,000 CALIFORNIA HFA AMT HOME MORTGAGE SERIES E (HOUSING REVENUE) 5.00 02/01/2042 928,278
1,000,000 CALIFORNIA HFA HOME MORTGAGE SERIES B (SFMR) 3.95 08/01/2012 1,051,250
865,000 CALIFORNIA HFA HOME MORTGAGE SERIES E (SFMR) 4.65 08/01/2022 796,752
1,065,000 CALIFORNIA HFA HOME MORTGAGE SERIES K (SFMR) 4.55 08/01/2021 966,860
520,000 CALIFORNIA HFA HOME MORTGAGE SERIES M (SFMR) 4.55 08/01/2021 472,082
900,000 CALIFORNIA HFA MULTIFAMILY III SERIES F (MFHR, GO OF AGENCY INSURED, FNMA
LOC)+/-ss 0.47 02/01/2032 900,000
1,000,000 CALIFORNIA HFA SERIES B (MFHR)+/-ss 0.36 08/01/2040 1,000,000
395,000 CALIFORNIA HFFA CALIFORNIA-NEVADA METHODIST (HCFR, CALIFORNIA MORTGAGE
INSURED) 4.25 07/01/2011 395,691
600,000 CALIFORNIA HFFA CASA COLINA PROJECT (HCFR) 5.50 04/01/2013 619,992
1,000,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES F (HCFR)+/-ss 5.00 07/01/2027 1,058,950
1,000,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES G (HCFR)+/-ss 5.00 07/01/2028 1,059,260
1,450,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES I (HCFR)+/-ss 4.95 07/01/2026 1,541,800
500,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES L (HCFR) 5.13 07/01/2022 517,515
85,000 CALIFORNIA HFFA CATHOLIC WEST SERIES H PREREFUNDED (HCFR)+/-ss 4.45 07/01/2026 89,972
1,720,000 CALIFORNIA HFFA CATHOLIC WEST SERIES H UNREFUNDED BALANCE (HCFR)+/-ss 4.45 07/01/2026 1,773,956
250,000 CALIFORNIA HFFA CEDARS-SINAI MEDICAL CENTER (HCFR) 3.00 08/15/2011 250,980
400,000 CALIFORNIA HFFA SCRIPPS HEALTH SERIES A (HCFR) 4.00 10/01/2014 421,468
945,000 CALIFORNIA HFFA STANFORD HEALTH CARE SERIES B (HCFR, AMBAC INSURED) 5.00 11/15/2011 951,606
250,000 CALIFORNIA HFFA STANFORD HOSPITAL & Clinics Series A (HCFR) 5.00 11/15/2013 269,518
1,000,000 CALIFORNIA HOUSING FINANCE AGENCY HOME MORTGAGE SERIES E
(HOUSING REVENUE, FGIC INSURED) 5.00 02/01/2014 1,017,710
800,000 CALIFORNIA HOUSING FINANCE AGENCY HOME MORTGAGE SERIES J AMT
(HOUSING REVENUE, AGM INSURED) 4.13 08/01/2011 813,624
500,000 CALIFORNIA HOUSING FINANCE AGENCY HOME MORTGAGE SERIES J AMT
(HOUSING REVENUE, AGM INSURED) 4.38 08/01/2012 510,110
1,775,000 CALIFORNIA HOUSING FINANCE AGENCY HOME MORTGAGE SERIES J AMT
(HOUSING REVENUE, FGIC INSURED) 4.05 08/01/2013 1,773,829
300,000 CALIFORNIA INDUSTRY PUBLIC FACILITIES AUTHORITY (TAX INCREMENTAL REVENUE,
NATL-RE INSURED) 5.00 05/01/2011 309,912
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 17
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 425,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK J. PAUL GETTY SERIES A
(OTHER REVENUE)+/-ss 4.00% 10/01/2023 $ 450,653
1,000,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK LOS ANGELES COUNTY
MUSEUM SERIES A (RECREATIONAL FACILITIES REVENUE, ALLIED IRISH BANK PLC
LOC)+/-ss 0.20 09/01/2037 1,000,000
1,500,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK PACIFIC GAS & ELECTRIC
COMPANY SERIES F PUTABLE (NATURAL GAS REVENUE)+/-ss 3.75 11/01/2026 1,520,505
1,000,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK PACIFIC GAS & ELECTRIC
COMPANY SERIES G PUTABLE (NATURAL GAS REVENUE)+/-ss 3.75 12/01/2018 1,013,670
220,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK WORKERS COMPENSATION
RELIEF SERIES A (OTHER REVENUE, AMBAC INSURED) 5.00 10/01/2010 227,271
1,090,000 CALIFORNIA MUNICIPAL FINANCE AUTHORITY COP COMMUNITY HOSPITALS CENTRAL
CALIFORNIA (HCFR) 3.00 02/01/2010 1,089,815
395,000 CALIFORNIA MUNICIPAL FINANCE AUTHORITY COP COMMUNITY HOSPITALS CENTRAL
CALIFORNIA (HCFR) 3.00 02/01/2011 392,685
1,585,000 CALIFORNIA MUNICIPAL FINANCE AUTHORITY COP COMMUNITY HOSPITALS CENTRAL
CALIFORNIA (HCFR) 5.00 02/01/2012 1,623,690
800,000 CALIFORNIA MUNICIPAL FINANCE AUTHORITY WASTE MANAGEMENT INCORPORATED PROJECT
(LEASE REVENUE)+/-ss 3.45 09/01/2014 800,552
1,000,000 CALIFORNIA PCFA PACIFIC GAS & ELECTRIC SERIES A (IDR, NATL-RE INSURED)+/-ss 5.35 12/01/2016 1,032,790
1,000,000 CALIFORNIA PCFA SOLID WASTE DISPOSAL WASTE MANAGEMENT PROJECT SERIES A
(PCR)+/-ss 5.13 07/01/2031 1,046,930
1,000,000 CALIFORNIA PCFA USA WASTE SERVICES INCORPORATED PROJECT B (RESOURCE
RECOVERY REVENUE)+/-ss 4.00 06/01/2018 1,004,080
1,820,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY MORTGAGE-BACKED
SECURITIES PROGRAM SERIES A (SFMR, FNMA/GNMA/FHLMC INSURED) 4.20 02/01/2027 1,769,531
345,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY MORTGAGE-BACKED
SECURITIES PROGRAM SERIES C PUTABLE (SFMR, FNMA/GNMA/FHLMC INSURED)ss 4.10 08/01/2039 344,717
350,000 CALIFORNIA SPECIAL DISTRICTS FINANCE PROGRAM COP SERIES 00 (LEASE REVENUE,
NATL-RE INSURED) 5.00 12/01/2015 356,167
100,000 CALIFORNIA STATE (GENERAL FUND REVENUE) 4.00 11/01/2010 102,521
125,000 CALIFORNIA STATE (GENERAL FUND REVENUE, AGM INSURED) 5.25 02/01/2010 125,409
275,000 CALIFORNIA STATE (GENERAL FUND REVENUE, AGM INSURED) 5.75 12/01/2010 285,513
1,815,000 CALIFORNIA STATE (PROPERTY TAX REVENUE) 6.25 09/01/2012 1,936,242
200,000 CALIFORNIA STATE (PROPERTY TAX REVENUE, AGM INSURED) 4.50 02/01/2011 206,210
100,000 CALIFORNIA STATE (TAX REVENUE) ## 1.82 03/01/2011 97,894
100,000 CALIFORNIA STATE (TAX REVENUE, NATL-RE INSURED) 6.00 02/01/2010 100,419
1,000,000 CALIFORNIA STATE ANTICIPATION NOTES SUBSERIES A 1 (GENERAL FUND REVENUE) 3.00 05/25/2010 1,007,270
1,110,000 CALIFORNIA STATE ANTICIPATION NOTES SUBSERIES A 2 (GENERAL FUND REVENUE) 3.00 06/23/2010 1,118,569
350,000 CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SERIES A (ELECTRIC, POWER &
LIGHT REVENUE, NATL-RE INSURED) 5.25 05/01/2010 355,432
1,500,000 CALIFORNIA STATE DWR POWER SUPPLY REVENUE SERIES A (ELECTRIC, POWER &
LIGHT REVENUE) 6.00 05/01/2014 1,668,540
3,200,000 CALIFORNIA STATE DWR POWER SUPPLY REVENUE SERIES C 7 (ELECTRIC, POWER &
LIGHT REVENUE, AGM INSURED)+/-ss 0.21 05/01/2022 3,200,000
1,000,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE) 5.00 01/01/2011 1,039,800
905,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE) 5.25 01/01/2010 905,000
325,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE, NATL-RE
INSURED) 5.00 07/01/2010 331,763
545,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A PREREFUNDED (SALES TAX REVENUE) 5.25 01/01/2010 545,000
1,075,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A PREREFUNDED (SALES TAX REVENUE) 5.25 01/01/2011 1,127,310
130,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A UNREFUNDED BALANCE
(SALES TAX REVENUE) 5.25 01/01/2011 135,498
205,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES B (SALES TAX REVENUE)+/-ss 5.00 07/01/2023 215,873
1,575,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES B (SALES TAX REVENUE)+/-ss 5.00 07/01/2023 1,587,395
1,000,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES B PUTABLE (PROPERTY TAX
REVENUE)+/-ss 4.00 07/01/2023 1,052,570
1,000,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES C 16 (SALES TAX REVENUE,
AGM STATE GUARANTEED)+/-ss 0.25 07/01/2023 1,000,000
18 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 100,000 CALIFORNIA STATE PREREFUNDED (GENERAL FUND REVENUE) 5.25% 12/01/2023 $ 104,445
300,000 CALIFORNIA STATE PREREFUNDED (GENERAL FUND REVENUE, XLCA INSURED) 5.25 10/01/2023 310,977
100,000 CALIFORNIA STATE PREREFUNDED 2005 (GENERAL FUND REVENUE) 5.25 09/01/2024 103,253
485,000 CALIFORNIA STATE PRINCIPAL (TAX REVENUE, NATL-RE INSURED)## 0.74 09/01/2011 478,957
1,020,000 CALIFORNIA STATE PUBLIC WORKS BOARD CALIFORNIA COMMUNITY COLLEGES SERIES A
(LEASE REVENUE, AMBAC INSURED) 5.25 12/01/2012 1,027,293
100,000 CALIFORNIA STATE PUBLIC WORKS BOARD CALIFORNIA COMMUNITY COLLEGES SERIES A
(LEASE REVENUE, AMBAC INSURED) 5.50 04/01/2013 100,217
1,930,000 CALIFORNIA STATE PUBLIC WORKS BOARD CALIFORNIA COMMUNITY COLLEGES SERIES B
(LEASE REVENUE, NATL-RE INSURED) 5.10 09/01/2013 1,952,639
750,000 CALIFORNIA STATE PUBLIC WORKS BOARD CALIFORNIA COMMUNITY COLLEGES SERIES D
(LEASE REVENUE, NATL-RE INSURED) 5.38 03/01/2012 751,830
450,000 CALIFORNIA STATE PUBLIC WORKS BOARD CALIFORNIA STATE UNIVERSITY SERIES A
(LEASE REVENUE, AMBAC INSURED) 5.00 10/01/2010 451,395
365,000 CALIFORNIA STATE PUBLIC WORKS BOARD CALIFORNIA STATE UNIVERSITY TRUSTEES
SERIES B (LEASE REVENUE) 5.00 09/01/2013 367,431
50,000 CALIFORNIA STATE PUBLIC WORKS BOARD DEPARTMENT OF CORRECTIONS & REHABILITATION
SERIS J (LEASE REVENUE, AMBAC INSURED) 5.00 01/01/2010 50,000
845,000 CALIFORNIA STATE PUBLIC WORKS BOARD DEPARTMENT OF CORRECTIONS (LEASE REVENUE,
NATL-RE/IBC BANK INSURED) 5.50 06/01/2015 901,040
1,445,000 CALIFORNIA STATE PUBLIC WORKS BOARD DEPARTMENT OF CORRECTIONS STATE PRISONS
SERIES A (LEASE REVENUE, AMBAC INSURED) 5.25 12/01/2013 1,513,377
500,000 CALIFORNIA STATE PUBLIC WORKS BOARD DEPARTMENT OF HEALTH SERVICES SERIES A
(LEASE REVENUE, NATL-RE INSURED) 5.20 11/01/2012 506,060
500,000 CALIFORNIA STATE PUBLIC WORKS BOARD DEPARTMENT OF HEALTH SERVICES SERIES A
(LEASE REVENUE, NATL-RE INSURED) 5.50 11/01/2015 505,570
850,000 CALIFORNIA STATE PUBLIC WORKS BOARD STATE ARCHIVES (LEASE REVENUE,
NATL-RE/IBC BANK INSURED) 5.38 12/01/2010 852,890
250,000 CALIFORNIA STATE PUBLIC WORKS BOARD TRUSTEES CALIFORNIA STATE UNIVERSITY
SERIES A (LEASE REVENUE) 5.25 10/01/2013 251,710
150,000 CALIFORNIA STATE PUBLIC WORKS BOARD UNIVERSITY OF CALIFORNIA RESEARCH PROJECT
SERIES L (COLLEGE & UNIVERSITY REVENUE) 5.25 11/01/2010 155,753
800,000 CALIFORNIA STATE VETERANS BONDS SERIES BG (TAX REVENUE, AGM INSURED) 5.15 12/01/2015 801,192
1,000,000 CALIFORNIA STATE VETERANS BONDS SERIES BH (TAX REVENUE) 5.40 12/01/2014 1,000,000
1,000,000 CALIFORNIA STATE VETERANS BONDS SERIES CA (TAX REVENUE) 4.45 12/01/2017 1,020,520
200,000 CALIFORNIA STATEWIDE CDA COP (ACA RADIAN INSURED)+/-ss(a)(m)(n) 0.69 05/15/2029 190,000
1,150,000 CALIFORNIA STATEWIDE CDA COP HEALTH FACILITIES (LEASE REVENUE, NATL-RE
INSURED) 5.50 09/01/2014 1,272,188
1,000,000 CALIFORNIA STATEWIDE CDA DISPOSAL REPUBLIC SERVICES SERIES A (RESOURCE
RECOVERY REVENUE)(i) 4.95 12/01/2012 1,024,190
610,000 CALIFORNIA STATEWIDE CDA INTERNATIONAL SCHOOL PENINSULA PROJECT (PRIVATE
SCHOOLS REVENUE) 4.60 11/01/2013 590,602
630,000 CALIFORNIA STATEWIDE CDA JOHN MUIR MT. DIABLO HEALTH SYSTEMS
(HCFR, NATL-RE INSURED) 5.50 08/15/2012 665,469
750,000 CALIFORNIA STATEWIDE CDA KAISER PERMANENTE SERIES B (HCFR)+/-ss 3.90 08/01/2031 784,980
725,000 CALIFORNIA STATEWIDE CDA KAISER PERMANENTE SERIES C (HCFR)+/-ss 3.85 11/01/2029 756,936
1,500,000 CALIFORNIA STATEWIDE CDA PROPOSITION 1A RECEIVABLES PROGRAM (OTHER REVENUE) 4.00 06/15/2013 1,545,090
4,000,000 CALIFORNIA STATEWIDE CDA PROPOSITION 1A RECEIVABLES PROGRAM (OTHER REVENUE) 5.00 06/15/2013 4,254,480
455,000 CALIFORNIA STATEWIDE CDA QUAIL RIDGE APARTMENTS SERIES E1 (HOUSING REVENUE) 4.25 07/01/2012 445,613
1,390,000 CALIFORNIA STATEWIDE CDA SHERMAN OAKS PROJECT SERIES A (OTHER REVENUE,
AMBAC INSURED) 5.50 08/01/2011 1,427,864
1,270,000 CALIFORNIA STATEWIDE CDA ST. JOSEPH (HCFR, FSA INSURED) 4.50 07/01/2018 1,319,936
375,000 CENTINELA VALLEY CA UNION HIGH SCHOOL DISTRICT SERIES A (PROPERTY TAX REVENUE,
FSA INSURED)## 3.89 08/01/2015 301,166
100,000 CERRITOS CA COMMUNITY COLLEGE DISTRICT ELECTION 2004 SERIES A
(PROPERTY TAX REVENUE, NATL-RE INSURED) 4.50 08/01/2010 102,336
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 19
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 430,000 CHULA VISTA CA COP (LEASE REVENUE, NATL-RE INSURED) 4.50% 08/01/2016 $ 439,125
500,000 COLTON CA JOINT USD ELECTION OF 2001 SERIES C (PROPERTY TAX REVENUE,
NATL-RE FGIC INSURED) 3.75 02/01/2010 501,040
230,000 COMPTON CA SOLID WASTE MANAGEMENT FACILITIES (RESOURCE RECOVERY REVENUE) 4.80 08/01/2020 215,096
450,000 CONTRA COSTA COUNTY CA PFA SERIES B (LEASE REVENUE, NATL-RE INSURED) 4.00 06/01/2013 466,907
1,205,000 CORONA CA PFA CITY HALL PROJECT SERIES B (LEASE REVENUE, NATL-RE INSURED) 5.38 09/01/2018 1,223,364
170,000 CORONA CA REDEVELOPMENT AGENCY MERGED DOWNTOWN AMENDED SERIES A
(TAX ALLOCATION REVENUE, NATL-RE INSURED) 3.50 09/01/2011 172,123
1,555,000 CULVER CITY CA RDFA (TAX REVENUE, AMBAC INSURED) 5.50 11/01/2014 1,605,615
1,000,000 DINUBA CA MERGED CITY REDEVELOPMENT #2 (TAX INCREMENTAL REVENUE) 4.40 10/01/2011 995,550
150,000 EAST WHITTIER CA CITY SCHOOL FACULTIES FINANCING AUTHORITY SCHOOL GO PROGRAM
(MISCELLANEOUS REVENUE, AGM GO OF DISTRICT) 5.00 08/01/2010 153,966
2,000,000 EL CAJON CA PFA SALES TAX SUPPORTED SERIES A (LEASE REVENUE) 4.00 08/01/2015 2,127,900
100,000 ETIWANDA CA SCHOOL DISTRICT PFA (OTHER REVENUE, ASSURED GUARANTY) 4.50 09/15/2010 102,604
365,000 FOLSOM CA REDEVELOPMENT AGENCY CENTRAL FOLSOM REDEVELOPMENT PROJECT
(TAX INCREMENTAL/ALLOCATION REVENUE) 3.00 08/01/2010 368,727
200,000 FOLSOM CA REDEVELOPMENT AGENCY CENTRAL FOLSOM REDEVELOPMENT PROJECT
(TAX INCREMENTAL/ALLOCATION REVENUE) 3.00 08/01/2011 203,598
370,000 FOLSOM CORDOVA CA USD SCHOOL FACILITIES IMPROVEMENT DISTRICT # 1 SERIES A
(PROPERTY TAX REVENUE, NATL-RE INSURED) 5.50 10/01/2015 402,897
900,000 FOLSOM CORDOVA CA USD SCHOOL FACILITIES IMPROVEMENT DISTRICT # 1 SERIES A
(PROPERTY TAX REVENUE, NATL-RE INSURED) 5.50 10/01/2016 980,019
400,000 FONTANA CA PFA (LEASE REVENUE, AMBAC INSURED) 5.00 09/01/2012 426,696
825,000 FONTANA CA RDA SIERRA CORRIDOR COMMERCIAL REDEVELOPMENT PROJECT
(TAX INCREMENTAL/ALLOCATION REVENUE, NATL-RE FGIC INSURED) 4.50 09/01/2015 858,553
200,000 FONTANA CA USD (AD VALOREM PROPERTY TAX REVENUE, ASSURED GUARANTY) 3.00 05/01/2010 201,696
1,500,000 FONTANA CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE) 4.00 12/01/2012 1,530,945
100,000 FREMONT CA MERGED REDEVELOPMENT PROJECT (TAX ALLOCATION REVENUE, XLCA INSURED) 3.38 09/01/2010 100,094
200,000 FRESNO CA USD SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED) 6.55 08/01/2020 229,516
460,000 FULLERTON CA PFA (TAX INCREMENTAL REVENUE, AMBAC INSURED) 5.00 09/01/2011 478,359
1,150,000 GOLDEN STATE TOBACCO SECURITIZATION CORPORATION ASSET-BACKED SERIES A 1
(TOBACCO SETTLEMENT REVENUE) 4.50 06/01/2027 1,034,057
100,000 GOLDEN STATE TOBACCO SECURITIZATION CORPORATION ENHANCED ASSET-BACKED SERIES A
(TOBACCO SETTLEMENT REVENUE, AMBAC INSURED) 3.25 06/01/2010 100,805
250,000 GOLDEN STATE TOBACCO SECURITIZATION CORPORATION ENHANCED ASSET-BACKED SERIES A
(TOBACCO SETTLEMENT REVENUE, AMBAC INSURED) 5.00 06/01/2010 253,823
2,910,000 GOLDEN STATE TOBACCO SECURITIZATION CORPORATION SERIES 2003 A 1
(TOBACCO SETTLEMENT REVENUE) 6.25 06/01/2033 3,231,846
200,000 GOLDEN WEST CA SCHOOLS FINANCING AUTHORITY CAPITAL APPRECIATION SERIES A
(OTHER REVENUE, NATL-RE INSURED)## 2.61 02/01/2013 184,790
100,000 HAWTHORNE CA SCHOOL DISTRICT ELECTION 2008 SERIES A (PROPERTY TAX REVENUE,
ASSURED GUARANTY)## 2.94 08/01/2013 90,191
100,000 HAWTHORNE CA SCHOOL DISTRICT ELECTION 2008 SERIES A (PROPERTY TAX REVENUE,
ASSURED GUARANTY)## 3.89 08/01/2015 80,311
155,000 HAWTHORNE CA SCHOOL DISTRICT ELECTION 2008 SERIES A (PROPERTY TAX REVENUE,
ASSURED GUARANTY)## 4.21 08/01/2016 116,850
165,000 HAWTHORNE CA SCHOOL DISTRICT ELECTION 2008 SERIES A (PROPERTY TAX REVENUE,
ASSURED GUARANTY)## 4.47 08/01/2017 116,629
100,000 HIGHLAND CA COMMUNITY FACILITIES DISTRICT 90-1 SERIES A (TAX REVENUE,
AMBAC INSURED) 4.25 09/01/2011 103,969
240,000 HORICON CA ELEMENTARY SCHOOL DISTRICT (PROPERTY TAX REVENUE, AMBAC INSURED) 4.00 08/01/2011 251,311
265,000 HORICON CA ELEMENTARY SCHOOL DISTRICT (PROPERTY TAX REVENUE, AMBAC INSURED) 4.00 08/01/2012 282,307
280,000 HORICON CA ELEMENTARY SCHOOL DISTRICT (PROPERTY TAX REVENUE, AMBAC INSURED) 4.00 08/01/2013 302,282
295,000 HORICON CA ELEMENTARY SCHOOL DISTRICT (PROPERTY TAX REVENUE, AMBAC INSURED) 4.00 08/01/2014 318,388
650,000 INDUSTRY CA (PROPERTY TAX REVENUE) 1.15 07/01/2010 651,716
20 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 395,000 INGLEWOOD CA RDA SUB LIEN MERGED REDEVELOPMENT PROJECT
(TAX INCREMENTAL/ALLOCATION REVENUE, ACA INSURED)## 4.79% 05/01/2012 $ 353,888
150,000 INGLEWOOD CA RDA SUB LIEN MERGED REDEVELOPMENT PROJECT
(TAX INCREMENTAL/ALLOCATION REVENUE, ACA INSURED)## 5.17 05/01/2013 126,713
200,000 IRVINE RANCH WATER DISTRICT CA (PROPERTY TAX REVENUE, LANDESBANK HESSEN
THURINGEN LOC)+/-ss 0.18 10/01/2010 200,000
260,000 LAKE ELSINORE CA SCHOOL FINANCING AUTHORITY HORSETHIEF CANYON
(SPECIAL TAX REVENUE) 5.35 09/01/2010 262,311
750,000 LANCASTER CA RDA COMBINED REDEVELOPMENT PROJECT AREAS
(TAX INCREMENTAL/ALLOCATION REVENUE) 4.50 08/01/2014 781,583
585,000 LANCASTER CA RDA COMBINED REDEVELOPMENT PROJECT AREAS
(TAX INCREMENTAL/ALLOCATION REVENUE) 4.75 08/01/2015 611,179
250,000 LINCOLN CA COMMUNITY FACILITIES DISTRICT # 2003-1 (TAX REVENUE) 6.00 09/01/2034 297,760
340,000 LINDSAY CA USD COP (LEASE REVENUE, ASSURED GUARANTY) 5.00 10/01/2014 371,297
285,000 LONG BEACH CA AQUARIUM OF THE PACIFIC (LEASE REVENUE, AMBAC INSURED) 5.50 11/01/2012 297,138
1,045,000 LONG BEACH CA BOND FINANCE AUTHORITY AQUARIUM OF THE SOUTH PACIFIC
(LEASE REVENUE, AMBAC INSURED) 5.50 11/01/2015 1,071,846
1,000,000 LONG BEACH CA COMMUNITY COLLEGE DISTRICT BOND ANTICIPATION NOTES SERIES A
(OTHER REVENUE) 9.85 01/15/2013 1,202,030
250,000 LONG BEACH CA PUBLIC SAFETY FACILITIES PROJECT (LEASE REVENUE, AMBAC INSURED) 5.25 11/01/2015 258,083
995,000 LONG BEACH CA SERIES B (AIRPORT REVENUE) 4.00 06/01/2014 1,011,865
145,000 LOS ANGELES CA CDA EARTHQUAKE DISASTER PROJECT SERIES D
(TAX INCREMENTAL/ALLOCATION REVENUE) 5.00 09/01/2010 148,265
255,000 LOS ANGELES CA CDA EARTHQUAKE DISASTER PROJECT SERIES D
(TAX INCREMENTAL/ALLOCATION REVENUE) 5.00 09/01/2014 277,045
375,000 LOS ANGELES CA CDA EARTHQUAKE DISASTER PROJECT SERIES D
(TAX INCREMENTAL/ALLOCATION REVENUE) 5.00 09/01/2015 404,790
150,000 LOS ANGELES CA CONVENTION & EXHIBIT CENTER SERIES A
(LEASE REVENUE, NATL-RE INSURED) 6.00 08/15/2010 155,183
300,000 LOS ANGELES CA COP HOLLYWOOD PRESBYTERIAN MEDICAL CENTER
(LEASE REVENUE, INDLC INSURED ) 9.63 07/01/2013 348,090
230,000 LOS ANGELES CA DW&P PREREFUNDED (ELECTRIC, POWER & LIGHT REVENUES,
NATL-RE INSURED) 4.75 08/15/2011 230,761
1,000,000 LOS ANGELES CA DW&P SUBSERIES B 7 (ELECTRIC, POWER & LIGHT REVENUES)+/-ss 0.15 07/01/2034 1,000,000
610,000 LOS ANGELES CA STATE CALIFORNIA DEPARTMENT SERIES A (LEASE REVENUE,
NATL-RE INSURED) 5.63 05/01/2011 623,652
1,000,000 LOS ANGELES COUNTY CA COMMUNITY FACILITIES DISTRICT # 5 ROWLAND HEIGHTS AREA
(SPECIAL TAX REVENUE, AGM INSURED) 5.00 09/01/2019 1,005,470
500,000 LOS ANGELES COUNTY CA METROPOLITAN TRANSPORTATION AUTHORITY SERIES E
(SALES TAX REVENUE) 3.00 07/01/2010 506,460
250,000 LOS ANGELES COUNTY CA PUBLIC WORKS FINANCING AUTHORITY MASTER PROJECT SERIES A
(LEASE REVENUE, NATL-RE INSURED) 5.00 09/01/2011 261,848
515,000 LOS ANGELES COUNTY CA PUBLIC WORKS FINANCING AUTHORITY MASTER PROJECT SERIES A
(LEASE REVENUE, NATL-RE INSURED) 5.00 09/01/2014 556,257
560,000 LOS ANGELES COUNTY CA PUBLIC WORKS FINANCING AUTHORITY REGIONAL PARK & OPEN
SPACE DISTRICT (SPECIAL ASSESSMENT REVENUE, AGM INSURED) 5.00 10/01/2010 577,780
160,000 LOS ANGELES COUNTY CA TRANSPORTATION COMMISSION SALES SERIES B
(SALES TAX REVENUE) 6.50 07/01/2010 163,954
350,000 MARIN CA PUBLIC SAFETY & EMERGENCY RADIO (OTHER REVENUE, AMBAC INSURED) 5.00 08/15/2010 354,939
100,000 MARIN CA PUBLIC SAFETY & EMERGENCY RADIO (OTHER REVENUE, AMBAC INSURED) 5.00 08/15/2014 101,176
100,000 MARIN COUNTY CA COP CAPITAL IMPROVEMENT PROJECTS SERIES B (LEASE REVENUE,
AGM INSURED) 4.40 08/01/2010 100,798
180,000 METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA SERIES A (PROPERTY TAX
REVENUE) 5.25 03/01/2011 181,433
200,000 METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA SERIES B 2 (UTILITIES
REVENUE)+/-ss 0.20 07/01/2035 200,000
115,000 MISSION VIEJO CA CDA SERIES A (LEASE REVENUE) 5.00 05/01/2010 116,704
500,000 MOJAVE CA USD COP (LEASE REVENUE, AGM INSURED)## 2.14 09/01/2012 472,485
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 21
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 1,070,000 MOUNT PLEASANT CA ELEMENTARY SCHOOL DISTRICT CAPITAL APPRECIATION 1998
ELECTION SERIES S (PROPERTY TAX REVENUE, AMBAC INSURED)## 3.66% 09/01/2014 $ 903,101
500,000 MOUNTAIN VIEW CA SHORELINE REGIONAL PARK COMMUNITY SERIES A
(TAX ALLOCATION REVENUE, NATL-RE INSURED) 5.50 08/01/2013 500,965
1,000,000 NAPA-VALLEJO CA SOLID WASTE TRANSFER FACILITY (SOLID WASTE REVENUE) 5.10 02/15/2011 1,001,480
990,000 NAPA-VALLEJO CA SOLID WASTE TRANSFER FACILITY (SOLID WASTE REVENUE) 5.30 02/15/2012 991,337
300,000 NEW HAVEN CA USD CAPITAL APPRECIATION ELECTION OF 2003 SERIES A
(PROPERTY TAX REVENUE, NATL-RE INSURED)## 2.16 08/01/2010 296,361
905,000 NEW HAVEN CA USD REFUNDING (PROPERTY TAX REVENUE, AGM INSURED) 12.00 08/01/2013 1,231,479
2,680,000 NORTHERN CA CALIFORNIA-OREGON TRANSMISSION PROJECT SERIES A (POWER REVENUE,
NATL-RE INSURED) 7.00 05/01/2013 2,921,682
100,000 NORWALK-LA MARINDA CA USD UNREFUNDED BALANCE (PROPERTY TAX REVENUES,
NATL-RE INSURED) 5.00 08/01/2010 102,112
1,125,000 OAKLAND CA JOINT POWERS FINANCING AUTHORITY OAKLAND CONVENTION CENTERS
(LEASE REVENUE, AMBAC INSURED) 5.50 10/01/2011 1,175,580
290,000 OAKLAND CA JOINT POWERS FINANCING AUTHORITY OAKLAND CONVENTION CENTERS
(LEASE REVENUE, AMBAC INSURED) 5.50 10/01/2013 311,045
300,000 OAKLAND CA JOINT POWERS FINANCING AUTHORITY SERIES A1 (LEASE REVENUE,
ASSURED GUARANTY) 3.50 01/01/2011 307,779
500,000 OAKLAND CA USD ALAMEDA COUNTY (PROPERTY TAX REVENUE, NATL-RE INSURED) 3.75 08/01/2012 514,065
435,000 OAKLAND CA USD ALAMEDA COUNTY ELECTION 2006 SERIES A (PROPERTY TAX REVENUE) 4.00 08/01/2014 449,512
280,000 OAKLAND CA USD ALAMEDA COUNTY ELECTION 2008 (PROPERTY TAX REVENUE,
NATL-RE INSURED) 5.00 08/01/2016 292,650
1,140,000 OCEANSIDE CA COP SERIES A (LEASE REVENUE, AMBAC INSURED) 5.00 04/01/2010 1,147,775
1,500,000 ORANGE COUNTY CA LOCAL TRANSPORTATION AUTHORITY LINKED SAVERS & RIBS
(SALES TAX REVENUE) 6.20 02/14/2011 1,547,460
185,000 OXNARD CA COP (LEASE REVENUE, AMBAC INSURED) 4.45 06/01/2012 187,078
200,000 PADRE DAM CA MUNICIPAL WATER DISTRICT COP CAPITAL IMPROVEMENT PROJECT SERIES A
(LEASE REVENUE) 2.00 10/01/2010 202,250
150,000 PALM DESERT CA FINANCING AUTHORITY HOUSING SET-ASIDE (TAX INCREMENTAL REVENUE,
NATL-RE INSURED) 5.00 10/01/2013 159,845
290,000 PALM SPRINGS CA AIRPORT SUB LIEN PALM SPRINGS INTERNATIONAL AIRPORT (AIRPORT
REVENUE) 5.10 07/01/2012 283,852
410,000 PALM SPRINGS CA AIRPORT SUB LIEN PALM SPRINGS INTERNATIONAL AIRPORT (AIRPORT
REVENUE) 5.20 07/01/2013 395,010
200,000 PALM SPRINGS CA AIRPORT SUB LIEN PALM SPRINGS INTERNATIONAL AIRPORT (AIRPORT
REVENUE) 5.30 07/01/2013 196,378
430,000 PALM SPRINGS CA AIRPORT SUB LIEN PALM SPRINGS INTERNATIONAL AIRPORT (AIRPORT
REVENUE) 5.30 07/01/2014 410,788
1,005,709 PALO VERDE CA USD FLEXFUND PROGRAM (EDUCATIONAL FACILITIES REVENUE)(i) 4.80 09/01/2027 967,683
135,000 PALOS VERDES PENINSULA CA USD SERIES A (PROPERTY TAX REVENUE) 5.75 11/01/2018 142,484
110,000 POMONA CA MERGED REDEVELOPMENT PREREFUNDED (TAX REVENUE, AMBAC INSURED) 4.50 02/01/2010 110,387
1,830,000 POMONA CA PFA REDEVELOPMENT PROJECT SERIES AD (TAX ALLOCATION REVENUE,
NATL-RE INSURED) 4.75 02/01/2013 1,875,476
105,000 PORT OF OAKLAND CA SERIES A (MARINA REVENUE, NATL-RE INSURED) 5.00 11/01/2010 107,952
20,000 PORT OF OAKLAND CA SERIES K PREREFUNDED (MARINA REVENUE, NATL-RE FGIC INSURED) 5.75 11/01/2012 20,311
5,000 PORT OF OAKLAND CA SERIES K PREREFUNDED (MARINA REVENUE, NATL-RE FGIC INSURED) 5.75 11/01/2014 5,078
2,430,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (MARINA REVENUE, NATL-RE FGIC INSURED) 5.75 11/01/2012 2,455,515
1,000,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (MARINA REVENUE, NATL-RE FGIC INSURED) 5.75 11/01/2013 1,009,330
995,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (MARINA REVENUE, NATL-RE FGIC INSURED) 5.75 11/01/2014 1,002,851
500,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (MARINA REVENUE, NATL-RE FGIC INSURED) 5.88 11/01/2017 501,935
1,015,000 POWAY CA COMMUNITY FACILITIES DISTRICT #88-1 PARKWAY BUSINESS (OTHER REVENUE) 2.00 08/15/2010 1,015,995
1,100,000 POWAY CA COMMUNITY FACILITIES DISTRICT #88-1 PARKWAY BUSINESS (OTHER REVENUE) 3.63 08/15/2014 1,093,719
1,000,000 POWAY CA RDA PAGUAY REDEVELOPMENT PROJECT SERIES A (TAX ALLOCATION REVENUE,
NATL-RE INSURED) 3.50 06/15/2010 1,005,770
500,000 POWAY CA RDA PAGUAY REDEVELOPMENT PROJECT SERIES A (TAX ALLOCATION REVENUE,
NATL-RE INSURED) 4.50 06/15/2014 519,900
500,000 RANCHO CUCAMONGA CA REDEVELOPMENT AGENCY RANCHO REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE, AGM INSURED) 5.00 09/01/2013 506,580
22 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (CONTINUED)
$ 350,000 RANCHO CUCAMONGA CA REDEVELOPMENT AGENCY RANCHO REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE, AMBAC INSURED) 5.00% 09/01/2011 $ 363,969
1,100,000 RIVERSIDE CA COMMUNITY FACILITIES DISTRICT # 90-1 SERIES A (SPECIAL TAX
REVENUE, NATL-RE INSURED) 5.50 09/01/2013 1,136,938
1,000,000 RIVERSIDE COUNTY CA PALM DESERT FINANCING AUTHORITY SERIES A (LEASE REVENUE) 4.50 05/01/2012 1,058,900
545,000 RIVERSIDE COUNTY CA PFA JURUPA VALLEY DESERT & INTERSTATE 215
(TAX INCREMENTAL/ALLOCATION REVENUE, NATL-RE INSURED) 4.50 10/01/2015 560,200
1,000,000 RIVERSIDE COUNTY CA PFA JURUPA VALLEY DESERT & INTERSTATE 215
(TAX INCREMENTAL/ALLOCATION REVENUE, NATL-RE INSURED) 5.00 10/01/2014 1,060,350
500,000 ROSEVILLE CA NATURAL GAS FINANCING AUTHORITY (UTILITIES REVENUE) 5.00 02/15/2015 521,775
1,000,000 SACRAMENTO CA AIRPORT SERIES D (AIRPORT REVENUE) 5.00 07/01/2014 1,103,360
190,000 SACRAMENTO CA CITY FINANCING AUTHORITY (LEASE REVENUE) 5.00 07/01/2010 192,483
300,000 SACRAMENTO CA CITY FINANCING AUTHORITY EPA BUILDING SERIES B (LEASE REVENUE,
AMBAC INSURED) 5.00 05/01/2014 302,178
255,000 SACRAMENTO CA CITY FINANCING AUTHORITY SERIES A (LEASE REVENUE, AMBAC INSURED) 5.38 11/01/2014 271,259
895,000 SACRAMENTO CA CITY FINANCING AUTHORITY SERIES B (LEASE REVENUE) 5.00 11/01/2014 942,623
500,000 SACRAMENTO CA MUNICIPAL UTILITY DISTRICT SERIES G (POWER REVENUE, NATL-RE
INSURED) 6.50 09/01/2013 549,075
310,000 SACRAMENTO CA MUNICIPAL UTILITY DISTRICT SERIES O (POWER REVENUE, NATL-RE
INSURED) 5.25 08/15/2015 320,236
600,000 SACRAMENTO CA MUNICIPAL UTILITY DISTRICT SERIES S (POWER REVENUE, AGM INSURED) 5.00 11/15/2010 623,724
1,000,000 SACRAMENTO COUNTY CA SANITATION DISTRICT FINANCING AUTHORITY SERIES A
(SEWER REVENUE) 6.00 12/01/2014 1,059,800
100,000 SADDLEBACK VALLEY CA USD PFA SERIES A (TAX REVENUE, AGM INSURED) 4.30 09/01/2010 101,284
985,000 SALINAS VALLEY CA SOLID WASTE AUTHORITY (SOLID WASTE REVENUE, AMBAC INSURED) 5.00 08/01/2012 1,022,893
910,000 SAN BERNARDINO COUNTY CA FINANCING AUTHORITY FACILITIES PROJECT (OTHER
REVENUE) 5.10 06/01/2017 847,974
2,000,000 SAN BERNARDINO COUNTY CA SAN BERNARDINO COUNTY COP ARROWHEAD PROJECT SERIES A
(LEASE REVENUE) 5.50 08/01/2020 2,057,980
100,000 SAN BERNARDINO COUNTY CA TRANSPORTATION AUTHORITY SERIES A (SALES TAX REVENUE,
AMBAC INSURED) 5.00 03/01/2010 100,664
485,000 SAN DIEGO CA RDA TAX ALLOCATION CENTRE CITY SERIES A (TAX INCREMENTAL REVENUE,
XLCA INSURED) 5.00 09/01/2014 520,584
3,600,000 SAN DIEGO COUNTY CA COP (LEASE REVENUE, AMBAC INSURED) 5.63 09/01/2012 3,741,156
500,000 SAN FRANCISCO CA AIRPORT IMPROVEMENT UNITED AIRLINES INCORPORATED PROJECT
(AIRPORT REVENUE) 8.00 07/01/2013 564,565
1,000,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES 37C
(AIRPORT REVENUE, FSA INSURED)+/-ss 0.25 05/01/2029 1,000,000
250,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES 37D
(OTHER REVENUE, AGM INSURED)+/-ss 0.25 05/01/2030 250,000
240,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES ISSUE 30
(AIRPORT REVENUE, XLCA INSURED) 4.00 05/01/2014 253,733
100,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SERIES 26A (AIRPORT
REVENUE, NATL-RE FGIC INSURED) 5.00 05/01/2016 101,252
1,000,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS SECOND SERIES C (AIRPORT REVENUE,
FSA INSURED) 5.00 05/01/2015 1,114,600
100,000 SAN FRANCISCO CA CITY & COUNTY RDFA (SALES TAX REVENUE, AGM INSURED) 5.00 07/01/2010 101,338
1,000,000 SAN FRANCISCO CA CITY & COUNTY RDFA GEORGE R. MOSCONE CENTER (LEASE REVENUE,
AGM INSURED) 5.00 07/01/2017 1,066,700
125,000 SAN FRANCISCO CA CITY & COUNTY RDFA MISSION BAY NORTH REDEVELOPMENT SERIES C
(TAX REVENUE) 4.50 08/01/2014 129,230
310,000 SAN FRANCISCO CA CITY & COUNTY RDFA MISSION BAY NORTH REDEVELOPMENT SERIES C
(TAX REVENUE) 4.50 08/01/2016 311,922
500,000 SAN FRANCISCO CA CITY & COUNTY RDFA MISSION BAY SOUTH REDEVELOPMENT SERIES D
(TAX REVENUE) 4.00 08/01/2012 515,345
500,000 SAN FRANCISCO CA CITY & COUNTY RDFA MISSION BAY SOUTH REDEVELOPMENT SERIES D
(TAX REVENUE) 5.00 08/01/2014 533,675
2,000,000 SAN FRANCISCO CA CITY & COUNTY RDFA SAN FRANCISCO REDEVELOPMENT PROJECT SERIES
B (TAX INCREMENTAL/ALLOCATION REVENUE, NATL-RE FGIC INSURED) 5.25 08/01/2018 2,041,020
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 23
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 250,000 SAN FRANCISCO CITY & COUNTY CA RDFA SAN FRANCISCO REDEVELOPMENT PROJECT
SERIES B (TAX REVENUE, NATL-RE FGIC INSURED) 5.25% 08/01/2013 $ 268,063
1,000,000 SAN JOSE CA CONVENTION CENTER PROJECT SERIES F (LEASE REVENUE, NATL-RE
INSURED) 5.00 09/01/2015 1,053,760
100,000 SAN JOSE CA REDEVELOPMENT AGENCY MERGED AREA REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL/ALLOCATION REVENUE) 4.00 08/01/2010 101,001
675,000 SAN JOSE CA REDEVELOPMENT AGENCY SERIES A (TAX ALLOCATION REVENUE) 5.25 08/01/2011 702,898
550,000 SAN JOSE CA REDEVELOPMENT AGENCY SERIES A (TAX ALLOCATION REVENUE) 6.13 08/01/2015 615,731
1,000,000 SAN LUIS & DELTA-MENDOTA CA WATER AUTHORITY DHCCP DEVELOPMENT PROJECT SERIES A
(WATER REVENUE) 4.50 03/01/2014 1,065,050
1,100,000 SANTA CLARA VALLEY CA TRANSPORTATION AUTHORITY SERIES A (SALES TAX REVENUE)
+/-ss 0.24 06/01/2026 1,100,000
120,000 SANTA CRUZ COUNTY CA RDA LIVE OAK SOQUEL COMMUNITY IMPROVEMENT SERIES A
(TAX INCREMENTAL REVENUE) 4.20 09/01/2012 123,910
75,000 SANTA MARGARITA-DANA POINT AUTHORITY CA IMPROVEMENT DISTRICTS 1, 2, 2A & 8
SERIES A
(OTHER REVENUE, NATL-RE INSURED) 7.25 08/01/2010 77,401
500,000 SIERRA CA JOINT COMMUNITY COLLEGE DISTRICT SCHOOL FACILITIES IMPROVEMENT
DISTRICT # 2 CAPITAL APPRECIATION WESTERN NEVADA SERIES A (LEASE REVENUE,
NATL-RE INSURED)## 3.69 08/01/2015 405,330
250,000 SIGNAL HILL CA REDEVELOPMENT PROJECT # 1 (TAX INCREMENTAL/ALLOCATION REVENUE) 3.00 10/01/2010 253,535
550,000 SIGNAL HILL CA REDEVELOPMENT PROJECT # 1 (TAX INCREMENTAL/ALLOCATION REVENUE) 4.13 10/01/2016 550,358
1,020,000 SOLANO COUNTY CA COP (LEASE REVENUE) 4.25 11/15/2014 1,074,142
250,000 SOLANO COUNTY CA COP REFINANCING SERIES A (LEASE REVENUE, NATL-RE INSURED) 3.00 11/15/2010 254,743
1,365,000 SOUTH GATE CA PFA SOUTHGATE REDEVELOPMENT PROJECT # 1 (TAX REVENUE,
AMBAC INSURED) 5.25 09/01/2019 1,389,010
500,000 SOUTHERN CA PUBLIC POWER AUTHORITY NATIONAL GAS PROJECT # 1 SERIES A
(NATURAL GAS REVENUE) 5.00 11/01/2012 532,810
100,000 SUNNYVALE CA (SOLID WASTE REVENUE, AMBAC INSURED) 5.00 10/01/2010 102,540
2,170,000 TORRANCE CA RDA REFERENDUM SERIES C (TAX ALLOCATION REVENUE, NATL-RE INSURED) 5.45 09/01/2018 2,195,064
315,000 TRACY CA JOINT USD ELECTION 2006 (PROPERTY TAX REVENUE, AGM INSURED) 6.00 08/01/2013 358,939
345,000 TRACY CA JOINT USD ELECTION 2006 (PROPERTY TAX REVENUE, AGM INSURED) 8.00 08/01/2012 400,852
500,000 TURLOCK CA IRRIGATION DISTRICT SERIES A (UTILITIES REVENUE, NATL-RE INSURED) 5.00 01/01/2014 501,045
250,000 TURLOCK CA PFA (WATER REVENUE) 4.00 05/01/2010 252,978
200,000 UNIVERSITY OF CALIFORNIA LIMITED PROJECT SERIES A (COLLEGE & UNIVERSITY
REVENUE, NATL-RE INSURED) 5.00 05/15/2010 203,258
1,000,000 UNIVERSITY OF CALIFORNIA LIMITED PROJECT SERIES B (COLLEGE & UNIVERSITY
REVENUE, AGM INSURED) 5.00 05/15/2019 1,086,270
200,000 UNIVERSITY OF CALIFORNIA MULTIPLE PURPOSE PROJECT SERIES O (COLLEGE &
UNIVERSITY REVENUE, FGIC INSURED) 5.00 09/01/2027 208,292
545,000 VALLEJO CITY CA USD SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED) 5.00 02/01/2013 560,325
280,000 VICTOR VALLEY CA JOINT USD CAPITAL APPRECIATION BONDS (PROPERTY TAX REVENUE,
ASSURED GUARANTY)## 3.79 08/01/2015 225,770
465,000 WASHINGTON CA USD YOLO COUNTY COP NEW HIGH SCHOOL PROJECT (LEASE REVENUE,
AMBAC INSURED) 4.25 08/01/2013 482,944
905,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 5.00 07/01/2013 943,897
975,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 5.00 07/01/2014 1,011,943
2,355,000 WEST CONTRA COSTA CA USD 2000 ELECTION SERIES C (PROPERTY TAX REVENUE,
NATL-RE FGIC INSURED) 5.25 08/01/2018 2,422,541
520,000 WEST CONTRA COSTA CA USD CABS (PROPERTY TAX REVENUE, NATL-RE INSURED)## 2.86 08/01/2011 497,546
220,000 WESTSIDE CA USD 2008 ELECTION SERIES A (PROPERTY TAX REVENUE) 3.00 08/01/2010 223,307
200,000 WHITTIER CA HCFR PRESBYTERIAN INTERCOMMUNITY HOSPITAL (HCFR, NATL-RE INSURED) 6.25 06/01/2010 204,950
1,000,000 WHITTIER CA HCFR PRESBYTERIAN INTERCOMMUNITY HOSPITAL SERIES D (HCFR) 4.00 06/01/2013 1,032,060
245,000 WHITTIER CA PFA GREENLEAF AVENUE WHITTIER RDA SERIES A (LEASE REVENUE) 5.00 11/01/2012 250,138
500,000 WOODLAND CA TAX & REVENUE ANTICIPATION NOTES (PROPERTY TAX REVENUE) 2.50 06/30/2010 503,480
415,000 YUBA CITY CA USD SCHOOL FACILITIES IMPROVEMENT 2004-1 SERIES A (PROPERTY
TAX REVENUE, NATL-RE INSURED) 10.00 09/01/2010 439,784
204,660,728
-------------
24 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA LIMITED-TERM TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
GUAM: 0.22%
$ 500,000 GUAM GOVERNMENT LIMITED OBLIGATION SECTION 30 SERIES A (OTHER REVENUE) 5.00% 12/01/2012 $ 528,750
-------------
PUERTO RICO: 3.93%
1,210,000 PUERTO RICO COMMONWEALTH INFRASTRUCTURE FINANCING AUTHORITY SERIES A
(SALES TAX REVENUE, AMBAC INSURED) 5.25 07/01/2010 1,218,833
805,000 PUERTO RICO COMMONWEALTH PUBLIC IMPROVEMENT (PROPERTY TAX REVENUE,
NATL-RE INSURED) 5.75 07/01/2020 826,735
500,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES EE (POWER REVENUE, NATL-RE
INSURED) 5.00 07/01/2012 504,735
2,000,000 PUERTO RICO HFA VIVIENDA MODERNIZATION (HOUSING REVENUE) 4.75 10/01/2011 2,003,280
860,000 PUERTO RICO HIGHWAY & TRANSPORTATION AUTHORITY (FUEL SALES TAX REVENUE,
NATL-RE INSURED) 5.25 07/01/2014 865,693
595,000 PUERTO RICO HIGHWAY & TRANSPORTATION AUTHORITY SERIES Z (FUEL SALES TAX
REVENUE, NATL-RE INSURED) 6.25 07/01/2010 608,423
1,000,000 PUERTO RICO MUNICIPAL FINANCING AGENCY SERIES C (PROPERTY TAX REVENUE, AGM
INSURED) 5.00 08/01/2013 1,085,090
2,000,000 PUERTO RICO SALES TAX FINANCING CORPORATION FIRST SUB-SERIES A (SALES TAX
REVENUE)+/-ss 5.00 08/01/2039 2,096,920
9,209,709
-------------
VIRGIN ISLANDS: 0.23%
500,000 VIRGIN ISLANDS PFA GROSS RECEIPTS TAXES LOAN NOTES (SALES TAX REVENUE,
NATL-RE FGIC INSURED) 5.00 10/01/2013 530,805
-------------
TOTAL MUNICIPAL BONDS & NOTES (COST $212,448,252) 214,929,992
-------------
SHARES YIELD
- ----------- --------
SHORT-TERM INVESTMENTS: 7.35%
MUTUAL FUNDS: 7.35%
17,222,905 WELLS FARGO ADVANTAGE CALIFORNIA MUNICIPAL MONEY MARKET TRUST~+++(u) 0.11 17,222,905
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $17,222,905) 17,222,905
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $229,671,157)* 99.04% 232,152,897
OTHER ASSETS AND LIABILITIES, NET 0.96 2,260,495
------ -------------
TOTAL NET ASSETS 100.00% $ 234,413,392
====== =============
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
## Zero coupon security. Interest rate presented is yield to maturity.
(i) Illiquid security.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
~ The Fund invests cash balances that it retains for liquidity purposes in a
Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage Money
Market Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of $17,222,905.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $229,672,898 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $3,084,372
Gross unrealized depreciation (604,373)
----------
Net unrealized appreciation $2,479,999
The accompanying notes are an integral part of these financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 25
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MUNICIPAL BONDS & NOTES: 96.26%
CALIFORNIA: 95.25%
$ 1,500,000 ABC USD CA CAPITAL APPRECIATION SERIES B (PROPERTY TAX REVENUE, FGIC INSURED)## 4.85% 08/01/2018 $ 968,445
3,660,000 ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY CA SUB LIEN SERIES A (TRANSPORTATION
REVENUE, AMBAC INSURED)## 5.73 10/01/2018 2,198,635
525,000 ALAMEDA COUNTY CA COP (LEASE REVENUE, AMBAC INSURED) 5.63 12/01/2015 597,970
1,105,000 ALISAL CA UNION SCHOOL DISTRICT CAPITAL APPRECIATION 2006 ELECTION SERIES A
(PROPERTY TAX REVENUE, ASSURED GUARANTY)## 4.58 08/01/2017 774,307
2,170,000 ALISAL UNION SCHOOL DISTRICT CA SERIES B (PROPERTY TAX REVENUE, ASSURED
GUARANTY)## 5.81 08/01/2026 835,385
325,000 ANAHEIM CA PFA (LEASE REVENUE, AGM INSURED) 6.00 09/01/2010 335,693
5,900,000 ANAHEIM CA PFA (LEASE REVENUE, AGM INSURED)## 4.98 09/01/2018 3,788,567
15,110,000 ANAHEIM CA PFA CAPITAL APPRECIATION SUB LIEN PUBLIC IMPROVEMENTS PROJECT
SERIES C (LEASE REVENUE, AGM INSURED)## 6.25 09/01/2025 5,752,679
3,075,000 ANTELOPE VALLEY CA HEALTH CARE DISTRICT SERIES A (HCFR, AGM INSURED) 5.20 01/01/2017 3,076,507
4,345,000 AZTEC CA SHOPS LIMITED SAN DIEGO STATE UNIVERSITY (COLLEGE & UNIVERSITY
REVENUE) 5.88 09/01/2020 4,353,125
1,635,000 BAY AREA GOVERNMENTS ASSOCIATION CA (SALES TAX REVENUE, XLCA INSURED) 5.00 08/01/2017 1,675,188
3,190,000 BELMONT CA COMMUNITY FACILITIES SPECIAL TAX DISTRICT # 2000-1 LIBRARY PROJECT
SERIES A (TAX INCREMENTAL REVENUE, AMBAC INSURED) 5.75 08/01/2030 3,343,790
2,105,000 BREA CA PFA TAX ALLOCATION SERIES A (TAX INCREMENTAL REVENUE) 7.00 09/01/2023 2,190,610
1,500,000 CABRILLO CA USD SERIES A (PROPERTY TAX REVENUE, AMBAC INSURED)## 5.53 08/01/2021 760,140
3,000,000 CALIFORNIA CASA COLINA PROJECT (HCFR) 6.00 04/01/2022 3,025,980
3,000,000 CALIFORNIA COMMERCE JOINT POWER FINANCING AUTHORITY (OTHER REVENUE,
AMBAC INSURED) 5.00 08/01/2026 2,872,650
1,085,000 CALIFORNIA EDUCATIONAL FACILITIES POOLED COLLEGE PROJECTS SERIES B
(COLLEGE & UNIVERSITY REVENUE) 5.13 04/01/2017 1,034,949
725,000 CALIFORNIA EDUCATIONAL FACILITIES POOLED COLLEGE PROJECTS SERIES B
(COLLEGE & UNIVERSITY REVENUE) 5.25 04/01/2024 635,412
65,000 CALIFORNIA EDUCATIONAL FACILITIES POOLED COLLEGE PROJECTS SERIES B UNREFUNDED
(COLLEGE & UNIVERSITY REVENUE) 5.25 04/01/2024 66,448
2,750,000 CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY CATHOLIC HEALTHCARE WEST
SERIES A (HCFR) 6.00 07/01/2029 2,953,803
4,425,000 CALIFORNIA HFA AMT HOME MORTGAGE SERIES E (SFMR) 5.00 02/01/2042 4,369,820
6,700,000 CALIFORNIA HFA HOME MORTGAGE SERIES E (SFMR) 4.65 08/01/2022 6,171,370
2,845,000 CALIFORNIA HFA HOME MORTGAGE SERIES G (SFMR) 5.50 08/01/2042 2,812,283
7,115,000 CALIFORNIA HFA HOME MORTGAGE SERIES K (SFMR) 4.55 08/01/2021 6,459,353
3,310,000 CALIFORNIA HFA HOME MORTGAGE SERIES M (SFMR) 5.00 08/01/2037 3,282,362
4,500,000 CALIFORNIA HFA HOME MORTGAGE SERIES M (SFMR) 4.55 08/01/2021 4,085,325
2,000,000 CALIFORNIA HFA MULTIFAMILY III SERIES F (MFHR, GO OF AGENCY INSURED, FNMA
LOC)+/-ss 0.47 02/01/2032 2,000,000
4,900,000 CALIFORNIA HFA SERIES J (HOUSING REVENUE) 4.95 08/01/2022 4,568,711
2,275,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES L (HCFR) 5.13 07/01/2022 2,354,693
3,950,000 CALIFORNIA HOME MORTGAGE FINANCE AUTHORITY SERIES E PUTABLE (SFMR,
GNMA INSURED)ss 6.10 02/01/2046 4,026,077
500,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK (LEASE REVENUE, AMBAC) 4.25 09/01/2010 506,545
3,000,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK (OTHER REVENUE) 6.25 02/01/2039 3,177,390
5,000,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK J. DAVID GLADSTONE
INSTITUTE PROJECT (HCFR) 5.25 10/01/2034 4,734,700
1,000,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK LOS ANGELES COUNTY
MUSEUM SERIES A (RECREATIONAL FACILITIES REVENUE, ALLIED IRISH BANK PLC LOC)
+/-ss 0.20 09/01/2037 1,000,000
2,500,000 CALIFORNIA MUNICIPAL FINANCE AUTHORITY COMMUNITY HOSPITALS CENTRAL CALIFORNIA
(HOSPITAL REVENUE) 5.00 02/01/2020 2,413,500
2,000,000 CALIFORNIA POOLED COLLEGE & UNIVERSITY PROJECT SERIES B PREREFUNDED
(COLLEGE & UNIVERSITY REVENUE) 6.75 06/01/2030 2,073,640
75,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY MORTGAGE-BACKED SECURITIES
SERIES B (HOUSING REVENUE, GNMA INSURED) 6.25 12/01/2031 75,839
95,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY MORTGAGE-BACKED SECURITIES
SERIES B5 (HOUSING REVENUE, GNMA INSURED) 6.35 12/01/2029 101,934
26 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 3,550,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY MORTGAGE-BACKED
SECURITIES SERIES C PUTABLE (HOUSING REVENUE, GNMA)ss 5.40% 02/01/2046 $ 3,454,434
3,565,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY MORTGAGE-BACKED
SECURITIES SERIES E PUTABLE (HOUSING REVENUE, GNMA)ss 5.80 08/01/2043 3,616,978
1,090,000 CALIFORNIA SPECIAL DISTRICT ASSOCIATION FINANCE CORPORATION PROGRAM SERIES MM
(LEASE REVENUE) 5.50 06/01/2021 1,090,425
300,000 CALIFORNIA STATE (GENERAL FUND REVENUE) 5.00 03/01/2010 302,028
200,000 CALIFORNIA STATE (GENERAL FUND REVENUE) 5.50 06/01/2019 204,276
150,000 CALIFORNIA STATE (GENERAL FUND REVENUE) 5.75 03/01/2030 152,844
500,000 CALIFORNIA STATE (GENERAL FUND REVENUE) 6.50 09/01/2010 518,330
8,000,000 CALIFORNIA STATE (PROPERTY TAX REVENUE) 5.75 04/01/2031 8,079,200
1,055,000 CALIFORNIA STATE ANTICIPATION NOTES SUBSERIES A 1 (GENERAL FUND REVENUE) 3.00 05/25/2010 1,062,670
1,000,000 CALIFORNIA STATE ANTICIPATION NOTES SUBSERIES A 2 (GENERAL FUND REVENUE) 3.00 06/23/2010 1,007,720
2,520,000 CALIFORNIA STATE DEPARTMENT OF TRANSPORTATION CA SERIES A (LEASE REVENUE,
NATL-RE INSURED) 5.25 03/01/2016 2,528,467
3,000,000 CALIFORNIA STATE DEPARTMENT OF VETERAN AFFAIRS HOME PURCHASE SERIES A
(OTHER REVENUE, AMBAC INSURED) 5.30 12/01/2021 3,036,360
200,000 CALIFORNIA STATE DWR POWER SUPPLY REVENUE SERIES A (ELECTRIC, POWER & LIGHT
REVENUE, NATL-RE INSURED) 5.00 05/01/2010 202,938
9,800,000 CALIFORNIA STATE DWR POWER SUPPLY REVENUE SERIES C 7 (ELECTRIC, POWER & LIGHT
REVENUE, AGM INSURED)+/-ss 0.21 05/01/2022 9,800,000
55,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE) 4.00 07/01/2010 55,865
550,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE) 5.00 07/01/2010 561,446
5,000,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE) 5.00 07/01/2022 5,156,600
645,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE, FGIC INSURED) 5.25 01/01/2010 645,000
1,695,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES C 16 (SALES TAX REVENUE,
AGM STATE GUARANTEED)+/-ss 0.25 07/01/2023 1,695,000
450,000 CALIFORNIA STATE PREREFUNDED (GO - STATES, TERRITORIES, AMBAC INSURED) 5.25 12/01/2024 451,274
2,825,000 CALIFORNIA STATE PUBLIC WORKS BOARD SERIES K (LEASE REVENUE) 5.00 11/01/2018 2,835,876
4,225,000 CALIFORNIA STATE PUBLIC WORKS BOARD UNIVERSITY OF CALIFORNIA RESEARCH PROJECT
J-L (COLLEGE & UNIVERSITY REVENUE, NATL-RE INSURED) 5.25 11/01/2028 4,376,931
3,200,000 CALIFORNIA STATE UNIVERSITY FRESNO ASSOCIATION INCORPORATED SENIOR AUXILIARY
ORGANIZATION EVENT CENTER PREREFUNDED (COLLEGE & UNIVERSITY REVENUE) 6.00 07/01/2022 3,623,584
4,000,000 CALIFORNIA STATEWIDE CDA (HCFR) 5.25 12/01/2027 3,263,080
1,745,000 CALIFORNIA STATEWIDE CDA CATHOLIC WEST PREREFUNDED BALANCE (HCFR) 6.50 07/01/2020 1,811,816
1,420,000 CALIFORNIA STATEWIDE CDA CEDARS SINAI MEDICAL CENTER (HCFR) 6.50 08/01/2012 1,516,844
2,000,000 CALIFORNIA STATEWIDE CDA CHILDRENS HOSPITAL LOS ANGELES (HCFR, NATL-RE
INSURED) 5.25 08/15/2029 1,892,120
2,000,000 CALIFORNIA STATEWIDE CDA CHILDRENS HOSPITAL LOS ANGELES (HCFR, NATL-RE
INSURED) 5.25 08/15/2029 1,892,120
1,950,000 CALIFORNIA STATEWIDE CDA COP (OTHER REVENUE, ACA INSURED)+/-ss(m)(n)(a) 0.69 05/15/2029 1,852,500
2,010,000 CALIFORNIA STATEWIDE CDA PIONEER PARK PROJECT SERIES T (HOUSING REVENUE,
GNMA INSURED) 6.10 12/20/2035 2,049,517
6,000,000 CALIFORNIA STATEWIDE CDA PROPOSITION 1A RECEIVABLES PROGRAM (OTHER REVENUE) 5.00 06/15/2013 6,381,720
1,190,000 CALIFORNIA STATEWIDE CDA REFERENDUM INTERNATIONAL SCHOOL PENINSULA PROJECT
(OTHER REVENUE) 5.00 11/01/2016 1,096,359
4,000,000 CALIFORNIA STATEWIDE CDA SERIES B (WATER & WASTEWATER AUTHORITY REVENUE,
FSA INSURED) 5.25 10/01/2027 4,160,480
3,600,000 CALIFORNIA STATEWIDE CDA THE INTERNEXT GROUP (HCFR) 5.38 04/01/2017 3,610,260
1,000,000 CALIFORNIA STOCKTON PFA (OTHER REVENUE, GUARANTY AGREEMENT)+/-ss 1.00 09/01/2048 1,000,000
6,000,000 CALIFORNIA SUTTER HEALTH SERIES A (HCFR) 6.25 08/15/2031 6,085,200
2,750,000 CALIFORNIA SUTTER HEALTH SERIES C (HCFR, AGM INSURED) 5.13 08/15/2022 2,751,788
2,000,000 CALIFORNIA THE EPISCOPAL HOME (HCFR, CALIFORNIA MORTGAGE INSURED) 5.25 02/01/2021 2,000,920
90,000 CAPITOL AREA DEVELOPMENT AUTHORITY CA SERIES A (LEASE REVENUE, NATL-RE INSURED) 6.50 04/01/2012 90,347
1,140,000 CARSON CA RDA SERIES A (TAX INCREMENTAL REVENUE, NATL-RE INSURED) 5.25 10/01/2020 1,157,841
1,075,000 CATHEDRAL CITY CA PFA CAPITAL APPRECIATION SERIES A
(TAX INCREMENTAL REVENUE, NATL-RE INSURED)## 6.27 08/01/2024 435,934
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 27
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 1,085,000 CATHEDRAL CITY CA PFA CAPITAL APPRECIATION SERIES A
(TAX INCREMENTAL REVENUE, NATL-RE INSURED)## 6.45% 08/01/2026 $ 381,085
5,000,000 CENTER CA USD CAPITAL APPRECIATION SERIES C (PROPERTY TAX REVENUE, NATL-RE
INSURED)## 5.65 09/01/2021 2,520,000
3,600,000 CENTER CA USD ELECTION 1991 SERIES D (PROPERTY TAX REVENUE, NATL-RE INSURED)## 6.70 08/01/2028 1,068,768
2,645,000 CENTRAL VALLEY CA SCHOOL DISTRICT FINANCING AUTHORITY GO PROGRAM SERIES A
(EDUCATIONAL FACILITIES REVENUE, NATL-RE INSURED) 6.45 02/01/2018 3,010,565
3,000,000 CHICO CA PFA REDEVELOPMENT PROJECT AREA (TAX INCREMENTAL REVENUE, MBIA
INSURED) 5.13 04/01/2021 3,012,900
1,800,000 CHINO BASIN CA REGIONAL FINANCING AUTHORITY MUNICIPAL WATER DISTRICT SEWER
SYSTEM PROJECT (SEWER REVENUE, AMBAC INSURED) 6.00 08/01/2016 1,807,704
1,000,000 COLLEGE OF THE SEQUOIAS TULARE AREA IMPROVEMENT DISTRICT # 3 CA ELECTION 2008
SERIES 8
(COLLEGE & UNIVERSITY REVENUE, ASSURED GUARANTY)## 5.87 08/01/2024 428,530
1,355,000 COLLEGE OF THE SEQUOIAS TULARE AREA IMPROVEMENT DISTRICT # 3 CA ELECTION 2008
SERIES A
(COLLEGE & UNIVERSITY REVENUE, ASSURED GUARANTY)## 6.07 08/01/2025 532,827
290,000 COMPTON CA SOLID WASTE MANAGEMENT FACILITIES (RESOURCE RECOVERY REVENUE) 4.80 08/01/2020 271,208
270,000 CONTRA COSTA COUNTY CA (HOUSING REVENUE, GNMA INSURED) 7.75 05/01/2022 348,473
750,000 CONTRA COSTA COUNTY CA PFA (TAX INCREMENTAL REVENUE) 5.25 08/01/2028 729,158
4,000,000 DUARTE CA RDA CAPITAL APPRECIATION SUB MERGED REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE)## 4.28 12/01/2016 2,971,360
5,265,000 DUARTE CA SERIES A (HCFR) 5.25 04/01/2024 5,267,053
4,430,000 EAST SIDE CA UNION HIGH SCHOOL DISTRICT SANTA CLARA COUNTY CAPITAL
APPRECIATION SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED)## 4.43 09/01/2018 3,018,868
5,185,000 EAST SIDE CA UNION HIGH SCHOOL DISTRICT SANTA CLARA COUNTY CAPITAL
APPRECIATION SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED)## 4.59 09/01/2019 3,328,926
5,420,000 EAST SIDE CA UNION HIGH SCHOOL DISTRICT SANTA CLARA COUNTY CAPITAL
APPRECIATION SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED)## 4.73 09/01/2020 3,275,252
20,000 EASTERN MUNICIPAL WATER DISTRICT CA SERIES H (WATER & SEWER REVENUE) 5.00 07/01/2035 20,110
2,500,000 EL MONTE CA DEPARTMENT OF PUBLIC SERVICES FACILITIES PROJECT PHASE II (LEASE
REVENUE, AMBAC INSURED)(i) 5.25 01/01/2034 2,501,200
500,000 EMERYVILLE CA PFA ASSESSMENT DISTRIBUTION REFINANCING (SPECIAL FACILITIES
REVENUE) 5.75 09/02/2014 501,845
1,750,000 EMERYVILLE CA PFA ASSESSMENT DISTRIBUTION REFINANCING (SPECIAL FACILITIES
REVENUE) 5.90 09/02/2021 1,680,035
835,000 ESCONDIDO CA JOINT POWERS FINANCING AUTHORITY CIVIC CENTER PROJECT SERIES B
(LEASE REVENUE, AMBAC INSURED) 6.13 09/01/2011 881,493
8,385,000 ESCONDIDO CA UNION HIGH SCHOOL CAPITAL APPRECIATION ELECTION 2008 SERIES A
(PROPERTY TAX REVENUE, ASSURED GUARANTY)## 6.02 08/01/2027 2,970,302
2,000,000 ETIWANDA SCHOOL DISTRICT CA PFA (OTHER REVENUE, ASSURED GUARANTY) 5.00 09/15/2032 2,018,120
2,455,000 FONTANA CA RDA JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE) 5.50 10/01/2017 2,484,730
5,140,000 FONTANA CA RDA JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE) 5.50 10/01/2027 5,146,219
4,785,000 FONTANA CA RDA JURUPA HILLS REDEVELOPMENT PROJECT SERIES A
(TAX INCREMENTAL REVENUE) 5.60 10/01/2027 4,836,678
150,000 FONTANA CA USD (AD VALOREM PROPERTY TAX REVENUE, ASSURED GUARANTY) 3.00 05/01/2010 151,272
3,000,000 FOOTHILL EASTERN TRANSPORTATION CORRIDOR AGENCY CA (TOLL ROAD REVENUE)## 4.23 01/01/2025 1,601,160
380,000 FRESNO CA STREET IMPROVEMENT PROJECT (LEASE REVENUE) 6.63 12/01/2011 388,634
1,000,000 GILROY CA USD ELECTION 2008 SERIES A (PROPERTY TAX REVENUE, ASSURED GUARANTY) 6.00 08/01/2027 1,145,870
5,825,000 GOLDEN STATE TOBACCO SECURITIZATION CORPORATION CA ASSET-BACKED SERIES A 1
(TOBACCO SETTLEMENT REVENUE) 4.50 06/01/2027 5,237,724
2,000,000 GOLDEN WEST CA SCHOOLS CAPITAL APPRECIATION SERIES A (OTHER REVENUE,
NATL-RE INSURED)## 3.59 08/01/2015 1,621,320
585,000 GOLDEN WEST SCHOOLS FINANCING AUTHORITY CA (OTHER REVENUE, NATL-RE INSURED)## 4.76 08/01/2016 423,160
2,500,000 HAWAIIAN GARDENS CA RDA (TAX INCREMENTAL REVENUE) 6.00 12/01/2013 2,556,650
3,960,000 HAWTHORNE CA SCHOOL DISTRICT PREREFUNDED (LEASE REVENUE, AGM INSURED)+/-ss 6.00 11/01/2025 4,181,879
315,000 INDIAN WELLS VALLEY CA WATER DISTRICT (WATER REVENUE, ASSURED GUARANTY) 2.00 10/01/2010 318,651
1,815,000 INLAND EMPIRE TOBACCO SECURITIZATION AUTHORITY CA SERIES A (OTHER REVENUE) 4.63 06/01/2021 1,542,804
28 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 500,000 IRVINE RANCH WATER DISTRICT CA (PROPERTY TAX REVENUE, LANDESBANK HESSEN
THURINGEN LOC)+/-ss 0.18% 10/01/2010 $ 500,000
180,000 JAMUL-DULZURA CA UNION SCHOOL DISTRICT SERIES C (PROPERTY TAX REVENUE) 6.40 08/01/2016 180,830
150,000 JOHN SWETT CA USD (PROPERTY TAX REVENUE, ASSURED GUARANTY) 1.00 08/01/2010 150,407
4,000,000 LAKE ELSINORE CA PFA SERIES A (TAX INCREMENTAL REVENUE) 5.50 09/01/2030 3,865,560
3,010,000 LAKE ELSINORE CA SCHOOL FINANCING AUTHORITY HORSETHIEF CANYON
(SPECIAL TAX REVENUE) 5.63 09/01/2016 3,018,217
2,000,000 LANCASTER CA REDEVELOPMENT AGENCY TAX COMB REDEVELOPMENT PROJECT AREAS
(TAX INCREMENTAL REVENUE) 6.50 08/01/2029 2,121,320
1,000,000 LIVE OAK SCHOOL DISTRICT SANTA CRUZ COUNTY CA (LEASE REVENUE, ASSURED
GUARANTY) 5.50 08/01/2029 1,048,520
1,500,000 LONG BEACH BOND FINANCE AUTHORITY CA (LEASE REVENUE, AMBAC INSURED) 6.00 11/01/2017 1,633,590
4,740,000 LOS ANGELES CA COMMUNITY RDA (HOUSING REVENUE, FNMA)+/-ss 4.90 08/15/2039 4,898,458
2,310,000 LOS ANGELES CA COMMUNITY RDA MANCHESTER SOCIAL SERVICES PROJECT (LEASE
REVENUE, AMBAC INSURED) 5.00 09/01/2025 2,239,083
2,015,000 LOS ANGELES CA DEPARTMENT OF AIRPORTS LOS ANGELES INTERNATIONAL AIRPORT
SERIES C (AIRPORT & MARINA REVENUE) 5.00 05/15/2024 2,078,855
600,000 LOS ANGELES CA DEPARTMENT OF AIRPORTS LOS ANGELES INTERNATIONAL AIRPORT
SERIES C1 (AIRPORT REVENUE, BANQUE NATIONALE PARIS LOC)+/-ss 0.20 05/15/2020 600,000
3,000,000 LOS ANGELES CA DEPARTMENT OF WATER & POWER SERIES B (OTHER REVENUE) 5.25 07/01/2023 3,349,230
675,000 LOS ANGELES CA SERIES F2 (OTHER REVENUE)+/-ss 0.18 06/01/2032 675,000
40,000 LOS ANGELES COUNTY CA PUBLIC WORKS FINANCING AUTHORITY MASTER PROJECT SERIES A
(LEASE REVENUE, NATL-RE INSURED) 5.00 09/01/2014 43,204
1,000,000 LOS ANGELES COUNTY CA PUBLIC WORKS FINANCING AUTHORITY MASTER PROJECT SERIES B
(LEASE REVENUE, FGIC INSURED) 5.00 09/01/2018 1,043,500
470,000 MANTECA CA RDA AMENDED MERGED PROJECT AREA (TAX INCREMENTAL
REVENUE, XLCA INSURED) 5.00 10/01/2014 503,516
2,135,000 MERCED CA UNION HIGH SCHOOL DISTRICT CAPITAL APPRECIATION SERIES A
(PROPERTY TAX REVENUE, FGIC INSURED)## 4.63 08/01/2018 1,378,420
95,000 MERCED COUNTY CA (LEASE REVENUE, NATL-RE INSURED) 6.00 10/01/2012 97,019
1,000,000 METROPOLITAN WATER DISTRICT SOUTHERN CA WATERWORKS SERIES B3
(WATER REVENUE)+/-ss 0.20 07/01/2035 1,000,000
1,050,000 MISSION VIEJO CA CDA (LEASE REVENUE) 5.00 05/01/2026 1,092,840
1,110,000 MISSION VIEJO CA CDA (LEASE REVENUE) 5.00 05/01/2027 1,150,992
4,375,000 MONROVIA CA RDA CENTRAL REDEVELOPMENT PROJECT AREA 1 (TAX INCREMENTAL
REVENUE, AMBAC INSURED) 5.00 05/01/2021 4,385,325
1,435,000 MONTEBELLO CA USD (PROPERTY TAX REVENUE, AGM INSURED)## 5.53 08/01/2021 756,432
3,000,000 MONTEBELLO CA USD ELECTION OF 2004 SERIES A-1 (PROPERTY TAX REVENUE,
ASSURED GUARANTY) 5.25 08/01/2034 3,067,890
350,000 MURRIETA VALLEY CA USD PFA (PROPERTY TAX REVENUE, AGM INSURED)## 5.62 09/01/2022 172,449
1,785,000 MURRIETA VALLEY CA USD PFA (PROPERTY TAX REVENUE, AGM INSURED)## 5.95 09/01/2025 711,287
1,080,000 NAPA-VALLEJO CA WASTE MANAGEMENT AUTHORITY SOLID WASTE TRANSFER FACILITY
(SOLID WASTE REVENUE) 5.50 02/15/2013 1,081,274
2,000,000 NORTHERN INYO COUNTY CA LOCAL HOSPITAL DISTRICT (PROPERTY TAX REVENUE,
AGC-ICC INSURED) 5.60 08/01/2035 2,060,940
1,500,000 NORWALK-LA MIRADA CA USD ELECTION 2002 SERIES D (GO - SCHOOL DISTRICTS,
FSA INSURED)## 5.77 08/01/2023 691,125
1,483,497 OAK GROVE CA UNION SCHOOL DISTRICT FLEXFUND PROGRAM (OTHER REVENUE)(i) 4.75 08/01/2027 1,314,630
1,320,000 ONTARIO CA RDA ONTARIO REDEVELOPMENT PROJECT #1 (SPECIAL TAX REVENUE,
NATL-RE INSURED) 6.00 08/01/2015 1,423,448
850,000 ORANGE COUNTY CA PUBLIC FINANCING AUTHORITY (LEASE REVENUE, NATL-RE INSURED) 5.00 07/01/2010 867,825
250,000 ORANGE COUNTY CA SANITATION DISTRICT SERIES A (LEASE REVENUE)+/-ss 0.28 08/01/2029 250,000
10,000,000 PALM SPRINGS CA (HOSPITAL REVENUE)## 3.98 04/15/2021 6,361,600
290,000 PALM SPRINGS CA PALM SPRINGS INTERNATIONAL AIRPORT (AIRPORT REVENUE) 6.00 07/01/2018 271,127
500,000 PALM SPRINGS CA PALM SPRINGS INTERNATIONAL AIRPORT (AIRPORT REVENUE) 6.40 07/01/2023 448,730
1,910,116 PALO VERDE CA USD FLEXFUND PROGRAM (EDUCATIONAL FACILITIES REVENUE)(i) 4.80 09/01/2027 1,837,895
1,425,000 PALOMAR CA POMERADO HEALTH (PROPERTY TAX REVENUE, NATL-RE INSURED)## 5.50 08/01/2020 781,527
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 29
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 3,000,000 PALOMAR CA POMERADO HEALTH CALIFORNIA ELECTION OF 2004 SERIES A
(PROPERTY TAX REVENUE, NATL-RE INSURED) 5.00% 08/01/2032 $ 2,924,580
4,950,000 PALOMAR CA POMERADO HEALTH CARE DISTRICT (OTHER REVENUE) 5.50 11/01/2019 4,821,399
1,410,000 PASADENA CA OLD PASADENA PARKING FACILITIES PROJECT (LEASE REVENUE) 6.25 01/01/2018 1,626,562
2,045,000 PERRIS CA PFA SERIES A (TAX INCREMENTAL REVENUE) 5.75 10/01/2031 2,067,025
1,030,000 PERRIS CA PFA SERIES A (TAX INCREMENTAL REVENUE, NATL-RE INSURED) 5.25 10/01/2020 1,046,120
5,500,000 PICO RIVERA CA WATER AUTHORITY SERIES A (WATER REVENUE) 6.25 12/01/2032 5,008,795
2,000,000 PICO RIVERA CA WATER AUTHORITY SERIES A (WATER REVENUE, NATL-RE INSURED) 5.50 05/01/2019 2,253,380
2,515,000 PLACENTIA CA RDA SERIES A (TAX INCREMENTAL REVENUE) 5.85 08/01/2032 2,505,493
2,480,000 POMONA CA USD SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED) 6.55 08/01/2029 2,904,973
70,000 PORT OF OAKLAND CA SERIES K PREREFUNDED (AIRPORT & MARINA REVENUE,
NATL-RE INSURED) 5.75 11/01/2021 71,088
9,035,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (AIRPORT & MARINA REVENUE,
NAT-RE INSURED) 5.75 11/01/2021 9,045,571
2,000,000 PORT OF OAKLAND CA SERIES L (AIRPORT & MARINA REVENUE, NATL-RE INSURED) 5.50 11/01/2020 2,014,260
3,600,000 PORT OF REDWOOD CITY CA (AIRPORT & MARINA REVENUE) 5.13 06/01/2030 3,319,308
1,000,000 POWAY CA COMMUNITY FACILITIES DISTRICT #88-1 PARKWAY BUSINESS (OTHER REVENUE) 2.00 08/15/2010 1,000,980
830,000 REDLANDS CA RDA PROJECT AREA SERIES A (TAX REVENUE, AMBAC INSURED) 4.63 08/01/2022 779,569
1,000,000 RIALTO CA RDA MERGED PROJECT AREA SERIES A (TAX INCREMENTAL REVENUE) 5.00 09/01/2021 982,600
2,500,000 RICHMOND CA JOINT POWERS FINANCING AUTHORITY POINT POTRERO SERIES A (LEASE
REVENUE) 6.25 07/01/2024 2,619,975
215,000 RICHMOND CA JOINT POWERS FINANCING AUTHORITY SERIES A (LEASE REVENUE) 5.25 05/15/2013 215,492
8,595,000 RIVERSIDE COUNTY CA ASSET LEASING CORPORATION RIVERSIDE COUNTY HOSPITAL
PROJECT (HCFR, NATL-RE INSURED)## 6.45 06/01/2026 3,050,709
1,250,000 RIVERSIDE COUNTY CA MORTGAGE SERIES A (HOUSING REVENUE, GNMA INSURED) 7.80 05/01/2021 1,747,063
3,345,000 RIVERSIDE COUNTY CA PALM DESERT FINANCING AUTHORITY SERIES A (LEASE REVENUE) 6.00 05/01/2022 3,599,454
1,685,000 ROSEVILLE CA COP (ELECTRIC, POWER & LIGHT REVENUE) 5.25 02/01/2022 1,756,360
1,840,000 ROSEVILLE CA COP (ELECTRIC, POWER & LIGHT REVENUE) 5.25 02/01/2023 1,907,160
300,000 ROSEVILLE CA STONERIDGE COMMUNITY FACILITIES # 1(SPECIAL TAX REVENUE) 6.30 09/01/2031 334,377
2,500,000 SACRAMENTO CA CITY FINANCING AUTHORITY SERIES A (LEASE REVENUE, AMBAC INSURED) 5.40 11/01/2020 2,639,375
910,000 SACRAMENTO CA MUD SERIES A (ELECTRIC REVENUE, NATL-RE INSURED) 6.25 08/15/2010 943,042
525,000 SACRAMENTO CA MUD SERIES F (ELECTRIC REVENUE) 5.38 12/01/2013 571,557
1,985,000 SACRAMENTO CA SERIES A (OTHER REVENUE) 8.25 01/01/2021 2,730,487
1,085,000 SACRAMENTO COUNTY CA ANIMAL CARE YOUTH DETENTION (LEASE REVENUE, AMBAC
INSURED) 5.00 10/01/2025 1,068,649
3,285,000 SAN BERNARDINO COUNTY CA COP (LEASE REVENUE) 5.25 08/01/2019 3,344,031
3,270,000 SAN BERNARDINO COUNTY CA FINANCING AUTHORITY CT HOUSING FACILITIES PROJECT
(OTHER REVENUE, MBIA INSURED) 5.50 06/01/2037 3,174,156
1,000,000 SAN BERNARDINO COUNTY CA FLOOD CONTROL DISTRICT (WATER REVENUE,
UBS AG LOC)+/-ss 0.21 08/01/2037 1,000,000
8,000,000 SAN BERNARDINO COUNTY CA SAN BERNARDINO COUNTY COP ARROWHEAD PROJECT
SERIES A (LEASE REVENUE) 5.50 08/01/2020 8,231,920
400,000 SAN BERNARDINO COUNTY CA TRANSPORTATION AUTHORITY SERIES A
(SALES TAX REVENUE, AMBAC INSURED) 5.00 03/01/2010 402,656
885,000 SAN DIEGO CA RDA CENTRE (TAX INCREMENTAL REVENUE, AGM INSURED)## 5.91 09/01/2023 398,719
1,060,000 SAN DIEGO CA RDA CENTRE CITY SUB PARKING SERIES B (PARKING FACILITIES REVENUE) 5.30 09/01/2020 1,058,463
1,400,000 SAN DIEGO COUNTY CA REGIONAL TRANSPORTATION COMMUNITY LIMITED TAX SERIES D
(SALES TAX REVENUE, DEXIA CREDIT LOCAL DE FRANCE LOC)+/-ss 0.35 04/01/2038 1,400,000
2,500,000 SAN FRANCISCO CA CITY & COUNTY AIRPORT COMMISSION SECOND SERIES 27B
(AIRPORT REVENUE, FGIC INSURED) 5.00 05/01/2019 2,532,975
5,000,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES 37C
(AIRPORT REVENUE, FSA INSURED)+/-ss 0.25 05/01/2029 5,000,000
1,645,000 SAN FRANCISCO CA CITY AND MISSION BAY SOUTH REDEVELOPMENT D (TAX REVENUE) 6.25 08/01/2027 1,707,313
3,000,000 SAN FRANCISCO CA SERIES A (LEASE REVENUE) 5.20 04/01/2026 3,088,560
8,320,000 SAN JOSE CA RDA MERGED AREA REDEVELOPMENT PROJECT SERIES D
(TAX INCREMENTAL REVENUE, AMBAC INSURED) 5.00 08/01/2023 8,174,816
2,000,000 SAN JOSE CA RDA MERGED AREA REDEVELOPMENT PROJECT SERIES C
(TAX INCREMENTAL REVENUE, NATL-RE INSURED) 5.00 08/01/2025 1,932,680
1,500,000 SAN JOSE CA RDA SERIES C (TAX INCREMENTAL REVENUE, NATL-RE INSURED) 5.00 08/01/2026 1,429,995
1,205,000 SAN JOSE CA USD (LEASE REVENUE, AGM INSURED)## 4.73 01/01/2021 713,601
30 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 3,175,000 SAN JOSE CA USD (LEASE REVENUE, AGM INSURED)## 5.50% 01/01/2026 $ 1,312,101
1,360,000 SAN MARCOS CA PFA (STATE & LOCAL GOVERNMENTS)## 3.47 01/01/2019 983,851
1,200,000 SAN RAFAEL CITY CA HIGH SCHOOL DISTRICT ELECTION OF 2002 SERIES B
(PROPERTY TAX REVENUE, NATL-RE INSURED)## 5.11 08/01/2023 603,312
3,000,000 SANTA ANA CA FINANCING AUTHORITY INNER CITY COMMUTER SERIES C
(LEASE REVENUE) 5.60 09/01/2019 3,013,590
20,495,000 SANTA ANA CA USD CAPITAL APPRECIATION ELECTION 2008 SERIES B
(PROPERTY TAX REVENUE, ASSURED GUARANTY)## 6.85 08/01/2038 3,064,412
5,000,000 SANTA CLARA COUNTY CA FINANCING AUTHORITY (OTHER REVENUE, AMBAC INSURED) 5.75 02/01/2041 5,118,400
3,000,000 SANTA CLARA COUNTY CA HOUSING AUTHORITY BLOSSOM RIVER APARTMENTS
SERIES A (HOUSING REVENUE) 6.50 09/01/2039 2,382,750
2,100,000 SANTA CRUZ COUNTY CA RDA CALIFORNIA LIVE OAK SOQUEL COMMUNITY IMPROVEMENT
(TAX INCREMENTAL REVENUE) 6.63 09/01/2029 2,247,462
870,000 SCHOOL FACILITIES FINANCING AUTHORITY CA GRANT JOINT UNION HIGH SCHOOL
SERIES A (OTHER REVENUE, AGM INSURED)## 4.84 08/01/2019 541,471
1,505,000 SCHOOL FACILITIES FINANCING AUTHORITY CA GRANT JOINT UNION HIGH SCHOOL
SERIES A (OTHER REVENUE, AGM INSURED)## 5.49 08/01/2020 836,855
1,970,000 SIMI VALLEY CA USD CAPITAL IMPROVEMENT PROJECTS (LEASE REVENUE, AMBAC INSURED) 5.25 08/01/2022 1,983,987
3,000,000 SONOMA CA COMMUNITY RDA THE SPRINGS REDEVELOPMENT PROJECT
(TAX ALLOCATION REVENUE, ASSURED GUARANTY) 6.50 08/01/2028 3,202,530
1,765,000 SOUTH GATE CA PFA SOUTH GATE REDEVELOPMENT PROJECT # 1
(TAX INCREMENTAL REVENUE, XLCA INSURED) 5.25 09/01/2019 1,803,654
935,000 SOUTH PASADENA CA USD SERIES A (PROPERTY TAX REVENUE, FGIC INSURED) 5.55 11/01/2020 1,075,016
2,700,000 SOUTHERN CA LOGISTICS AIRPORT AUTHORITY HOUSING SET ASIDE REVENUE
(AIRPORT REVENUE, XLCA INSURED) 5.00 12/01/2036 2,025,945
1,270,000 SOUTHERN CA PUBLIC POWER AUTHORITY (ELECTRIC, POWER & LIGHT REVENUE) 6.75 07/01/2011 1,381,049
3,515,000 SOUTHWEST COMMUNITY CA FINANCE AUTHORITY RIVERSIDE COUNTY (LEASE REVENUE) 6.38 05/01/2033 3,773,915
6,100,000 STATE OF CALIFORNIA VETERANS SERIES BZ (GO STATE, MBIA INSURED) 5.35 12/01/2021 6,075,783
5,690,000 SULPHUR SPRINGS CA UNION SCHOOL DISTRICT INTEREST ACCRUAL SERIES A
(PROPERTY TAX REVENUE, NATL-RE INSURED)## 2.75 09/01/2013 5,151,328
2,590,000 SWEETWATER CA UNIFIED HIGH SCHOOL DISTRICT PFA SPECIAL TAX REVENUE
(SPECIAL TAX REVENUE, AGM INSURED) 5.00 09/01/2026 2,628,099
1,000,000 TRACY CA OPERATING PARTNERSHIP JOINT POWERS AUTHORITY CAPITAL
IMPROVEMENT PROJECTS (LEASE REVENUE, ASSURED GUARANTY) 6.25 10/01/2033 1,116,910
3,000,000 TULARE CA PFFA PROJECT (PROPERTY TAX REVENUE, ASSURED GUARANTY) 5.25 04/01/2027 3,153,420
5,210,000 UNION CITY CA COMMUNITY RDA SERIES A (SPECIAL FACILITIES REVENUE, AMBAC
INSURED) 5.38 10/01/2034 4,881,510
1,260,000 VACAVILLE CA USD (LEASE REVENUE, ASSURED GUARANTY) 6.50 12/01/2034 1,399,356
1,000,000 VENTURA COUNTY CA AREA HOUSING AUTHORITY SERIES A
(HOUSING REVENUE, AMBAC INSURED) 5.05 12/01/2026 822,830
2,500,000 VISTA CA COMMUNITY DEVELOPMENT COMMISSION VISTA REDEVELOPMENT
PROJECT AREA (TAX INCREMENTAL REVENUE) 5.88 09/01/2037 2,464,450
1,135,000 WALNUT VALLEY CA USD SERIES C (PROPERTY TAX REVENUE, FGIC INSURED) 5.75 08/01/2015 1,139,983
6,000,000 WEST CONTRA COSTA CA USD ELECTION 2005 SERIES C1 (PROPERTY TAX REVENUE,
ASSURED GUARANTY)## 5.65 08/01/2021 3,120,300
1,400,000 WEST CONTRA COSTA CA USD ELECTION OF 2005 SERIES B (PROPERTY TAX REVENUE) 6.00 08/01/2025 1,571,304
1,055,000 WEST CONTRA COSTA CA USD ELECTION OF 2005 SERIES B (PROPERTY TAX REVENUE) 6.00 08/01/2027 1,172,147
2,395,000 WINDSOR CA JOINT POWERS FINANCING AUTHORITY WINDSOR CIVIC CENTER SERIES A
(LEASE REVENUE, AGM INSURED) 5.38 10/01/2018 2,550,723
1,190,000 WISEBURN SCHOOL DISTRICT CA (PROPERTY TAX REVENUE, ASSURED GUARANTY)## 5.87 08/01/2024 509,951
1,525,000 WISEBURN SCHOOL DISTRICT CA (PROPERTY TAX REVENUE, ASSURED GUARANTY)## 6.12 08/01/2027 531,081
1,810,000 YORBA LINDA CA RDA CAPITAL APPRECIATION REDEVELOPMENT SERIES A
(SPECIAL TAX REVENUE, NATL-RE INSURED)## 5.28 09/01/2019 1,097,863
510,178,141
-------------
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 31
Portfolio of Investments--December 31, 2009 (Unaudited)
CALIFORNIA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
GUAM: 0.19%
$ 1,000,000 GUAM SECTION 30 SERIES A (OTHER REVENUE) 5.38% 12/01/2024 $ 999,440
-------------
NORTHERN MARIANA ISLANDS: 0.09%
475,000 COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS SERIES A (GENERAL FUND REVENUE) 6.00 06/01/2020 486,372
-------------
PUERTO RICO: 0.73%
3,800,000 CHILDREN'S TRUST TOBACCO SETTLEMENT ASSET-BACKED PREREFUNDED
(TOBACCO SETTLEMENT FUND) 6.00 07/01/2026 3,907,350
-------------
TOTAL MUNICIPAL BONDS & NOTES (COST $504,889,747) 515,571,303
-------------
SHARES YIELD
- ----------- --------
SHORT-TERM INVESTMENTS: 2.37%
MUTUAL FUNDS: 2.37%
12,718,647 WELLS FARGO ADVANTAGE CALIFORNIA MUNICIPAL MONEY MARKET TRUST~+++(u) 0.11 12,718,647
TOTAL SHORT-TERM INVESTMENTS (COST $12,718,647) 12,718,647
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $517,608,394)* 98.63% 528,289,950
OTHER ASSETS AND LIABILITIES, NET 1.37 7,331,684
------ -------------
TOTAL NET ASSETS 100.00% $ 535,621,634
------ -------------
- ----------
## Zero coupon security. Interest rate presented is yield to maturity.
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in a
Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage Money
Market Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of $12,718,647.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $517,966,031 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $18,053,685
Gross unrealized depreciation (7,729,766)
-----------
Net unrealized appreciation $10,323,919
The accompanying notes are an integral part of these financial statements.
32 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
COLORADO TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MUNICIPAL BONDS & NOTES: 89.37%
COLORADO: 87.79%
$ 1,250,000 ADAMS & WELD COUNTIES CO SCHOOL DISTRICT # 27J BRIGHTON (PROPERTY
TAX REVENUE, NATL-RE INSURED) 5.50% 12/01/2019 $ 1,366,038
415,000 ARAPAHOE COUNTY CO CENTENNIAL 25 METROPOLITAN DISTRICT (PROPERTY TAX REVENUE) 6.38 12/01/2016 398,964
500,000 ARAPAHOE COUNTY CO WATER & WASTEWATER AUTHORITY (WATER REVENUE, AGM INSURED) 5.00 12/01/2033 510,465
2,000,000 ARAPAHOE COUNTY CO WATER & WASTEWATER PUBLIC IMPROVEMENT DISTRICT
PROJECT SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED) 5.13 12/01/2032 2,003,940
750,000 ARAPAHOE COUNTY CO WATER & WASTEWATER PUBLIC IMPROVEMENT DISTRICT
SERIES B (PROPERTY TAX REVENUE) 4.63 12/01/2034 721,523
2,000,000 ARKANSAS CO RIVER POWER AUTHORITY (POWER REVENUE) 6.00 10/01/2040 1,990,320
2,000,000 AURORA CO COP SERIES A (LEASE REVENUE) 5.00 12/01/2027 2,116,960
1,000,000 BOULDER CO (WATER REVENUE) 5.60 12/01/2017 1,048,440
500,000 BROMLEY PARK CO METROPOLITAN DISTRICT # 2 SERIES A (PROPERTY TAX REVENUE,
RADIAN INSURED) 5.13 12/01/2037 390,705
150,000 CANON CITY CO FINANCE AUTHORITY COP (LEASE REVENUE, ASSURED GUARANTY) 5.00 12/01/2032 154,011
1,000,000 CHERRY CREEK CO BUSINESS IMPROVEMENT DISTRICT # 1 (PROPERTY TAX REVENUE) 5.00 12/01/2032 1,005,400
1,250,000 COLORADO ECFA (OTHER REVENUE) 5.25 06/01/2021 1,263,025
480,000 COLORADO ECFA ACADEMY CHARTER SCHOOL PROJECT (PRIVATE SCHOOLS REVENUE) 6.25 12/15/2012 507,389
1,000,000 COLORADO ECFA ACADEMY CHARTER SCHOOL PROJECT (PRIVATE SCHOOLS REVENUE) 7.13 12/15/2030 1,066,340
3,750,000 COLORADO ECFA ALEXANDER DAWSON SCHOOL PROJECT (PRIVATE SCHOOLS REVENUE) 5.30 02/15/2029 3,778,575
750,000 COLORADO ECFA CHARTER SCHOOL - TWIN PEAKS CHARTER (OTHER REVENUE) 6.75 11/15/2028 797,738
1,000,000 COLORADO ECFA CHARTER SCHOOL AMERICAN ACADEMY PROJECT (LEASE REVENUE,
MORAL OBLIGATION) 7.25 12/01/2028 1,129,750
1,000,000 COLORADO ECFA CHARTER SCHOOL AMERICAN ACADEMY PROJECT (LEASE REVENUE,
MORAL OBLIGATION) 7.38 12/01/2028 1,138,450
485,000 COLORADO ECFA CHARTER SCHOOL BANNING LEWIS (PRIVATE SCHOOLS REVENUE)++ 6.13 12/15/2035 404,902
1,040,000 COLORADO ECFA CHARTER SCHOOL COLLEGIATE PROJECT (EDUCATIONAL FACILITIES
REVENUE, XLCA INSURED) 5.00 06/15/2019 1,055,933
1,165,000 COLORADO ECFA CHARTER SCHOOL COLLEGIATE PROJECT (EDUCATIONAL FACILITIES
REVENUE, XLCA INSURED) 5.25 06/15/2024 1,173,237
750,000 COLORADO ECFA CHARTER SCHOOL COMMUNITY LEADERSHIP (LEASE REVENUE) 6.25 07/01/2028 651,630
1,000,000 COLORADO ECFA CHARTER SCHOOL FLAGSTAFF SERIES A (LEASE REVENUE) 6.75 08/01/2028 959,630
1,000,000 COLORADO ECFA CHARTER SCHOOL UNIVERSITY LAB SCHOOL PROJECT (PRIVATE SCHOOLS
REVENUE) 5.75 06/01/2016 1,071,940
590,000 COLORADO ECFA CHEYENNE MOUNTAIN CHARTER SERIES A (LEASE REVENUE, MORAL
OBLIGATION) 5.25 06/15/2029 557,686
100,000 COLORADO ECFA JOHNSON & WALES UNIVERSITY PROJECT SERIES A (COLLEGE
& UNIVERSITY REVENUE, XLCA INSURED) 5.00 04/01/2023 96,792
1,445,000 COLORADO ECFA PARKER CORE CHARTER (OTHER REVENUE, XLCA INSURED) 5.00 11/01/2024 1,434,437
1,500,000 COLORADO ECFA PINNACLE CHARTER SCHOOL PROJECT (LEASE REVENUE) 6.00 12/01/2021 1,647,750
2,735,000 COLORADO ECFA STUDENT HOUSING CAMPUS VILLAGE APARTMENT (LEASE REVENUE) 5.50 06/01/2033 2,762,815
2,305,000 COLORADO ECFA UNIVERSITY DENVER PROJECT (COLLEGE & UNIVERSITY REVENUE,
NATL-RE FGIC INSURED) 5.25 03/01/2026 2,407,342
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY ADVENTIST HEALTH SUNBELT SERIES D
(HCFR)+/-ss 5.25 11/15/2027 1,008,540
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY ADVENTIST HEALTH SUNBELT SERIES D
(HCFR)+/-ss 5.25 11/15/2035 968,320
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH INITIATIVES SERIES D
(HCFR) 6.25 10/01/2033 1,089,100
990,000 COLORADO HEALTH FACILITIES AUTHORITY EXEMPLA INCORPORATED SERIES A (HCFR) 5.50 01/01/2023 998,702
1,860,000 COLORADO HEALTH FACILITIES AUTHORITY HOSPITAL BOULDER COMMUNITY HOSPITAL
SERIES B (HCFR, NATL-RE INSURED) 5.88 10/01/2023 1,861,023
900,000 COLORADO HEALTH FACILITIES AUTHORITY HOSPITAL PARKVIEW MEDICAL CENTER
INCORPORATION (HCFR) 5.00 09/01/2025 887,445
2,000,000 COLORADO HEALTH FACILITIES AUTHORITY PARKVIEW MEDICAL CENTER PROJECT (HCFR) 6.50 09/01/2020 2,183,080
1,250,000 COLORADO HEALTH FACILITIES AUTHORITY SISTERS CHARITY HEALTHCARE SERIES A
(HCFR, AMBAC INSURED) 6.25 05/15/2011 1,348,263
500,000 COLORADO HFA COMPANY SERIES E2 (HOUSING REVENUE, NATL-RE INSURED) 7.00 02/01/2030 526,410
1,940,000 COLORADO HFA MULTIFAMILY PROJECT CLASS II SERIES A2 (MFHR) 5.40 10/01/2029 2,002,546
250,000 COLORADO HFA SERIES E3 (HOUSING REVENUE) 6.60 08/01/2017 254,610
750,000 COLORADO HFA SINGLE FAMILY MORTGAGE CLASS I SERIES A (SFMR, FHA INSURED VA
GUARANTEED HUD LOAN) 5.50 11/01/2029 779,910
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 33
Portfolio of Investments--December 31, 2009 (Unaudited)
COLORADO TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
COLORADO (continued)
$ 400,000 COLORADO HFA SINGLE FAMILY MORTGAGE SERIES A3 CLASS III (SFMR) 5.25% 05/01/2032 $ 403,864
2,170,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES A2 (SFHR)(h) 6.45 04/01/2030 2,299,354
240,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES A2 (SFHR) 6.50 08/01/2031 253,543
55,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES A3 (SFHR) 6.50 05/01/2016 57,389
345,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES B2 (SFHR) 6.10 08/01/2023 352,783
1,690,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES B2 (SFHR, NATL-RE INSURED) 6.80 02/01/2031 1,741,968
265,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES B3 (SFHR) 6.55 08/01/2033 291,561
680,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES B3 (SFHR) 6.70 08/01/2017 724,805
295,000 COLORADO HFA SINGLE FAMILY PROGRAM SERIES C3 (SFHR, FHA INSURED) 6.38 08/01/2033 314,423
1,320,000 COLORADO MOUNTAIN JUNIOR COLLEGE DISTRICT STUDENT HOUSING FACILITIES
(COLLEGE & UNIVERSITY REVENUE, NATL-RE INSURED) 5.00 06/01/2023 1,328,171
100,000 COLORADO SPRINGS CO COLLEGE PROJECT (COLLEGE & UNIVERSITY REVENUE)+/-ss 0.32 06/01/2029 100,000
1,160,000 COLORADO SPRINGS CO PUBLIC FACILITIES AUTHORITY COP OLYMPIC COMMITTEE PROJECT
(LEASE REVENUE, ASSURED GUARANTY) 5.00 11/01/2028 1,206,539
1,325,000 COLORADO SPRINGS CO PUBLIC FACILITIES AUTHORITY COP OLYMPIC COMMITTEE PROJECT
(LEASE REVENUE, ASSURED GUARANTY) 5.00 11/01/2029 1,365,399
1,000,000 COLORADO STATE COP FITZSIMONS ACADEMIC SERIES B (LEASE REVENUE, NATL-RE
INSURED) 5.00 11/01/2030 1,020,710
1,000,000 COLORADO WATER RESERVE POWER DEVELOPMENT AUTHORITY CLEAN WATER SERIES A
(WATER REVENUE) 4.50 09/01/2024 1,038,800
1,810,000 COLORADO WATER RESERVE POWER DEVELOPMENT AUTHORITY CLEAN WATER SERIES A
(WATER REVENUE) 4.88 09/01/2017 1,833,802
1,000,000 COLORADO WATER RESERVE POWER DEVELOPMENT AUTHORITY CLEAN WATER SERIES A
(WATER REVENUE) 5.00 09/01/2019 1,003,270
55,000 COLORADO WATER RESERVE POWER DEVELOPMENT AUTHORITY CLEAN WATER SERIES A
UNREFUNDED BALANCE (OTHER REVENUE) 5.13 09/01/2018 55,185
30,000 COLORADO WATER RESERVE POWER DEVELOPMENT AUTHORITY CLEAN WATER SERIES B
UNREFUNDED BALANCE (OTHER REVENUE) 5.00 09/01/2019 30,098
1,000,000 DENVER CO CITY & COUNTY BETTER DENVER & ZOO SERIES A (PROPERTY TAX REVENUE) 5.00 08/01/2025 1,106,100
1,000,000 DENVER CO CITY & COUNTY SERIES A (AIRPORT REVENUE, AMBAC INSURED) 6.00 11/15/2012 1,035,180
1,250,000 DENVER CO CITY & COUNTY SERIES A (AIRPORT REVENUE, XLCA INSURED) 5.00 11/15/2022 1,312,313
2,000,000 DENVER CO CITY & COUNTY SERIES A (TAX REVENUE, ASSURED GUARANTY) 6.00 09/01/2021 2,274,960
1,205,000 DENVER CO CONVENTION CENTER (OTHER REVENUE, XLCA INSURED) 5.00 12/01/2030 1,015,586
1,475,000 DOUGLAS COUNTY CO PARKER HILLTOP PROJECT (SFMR, FHA INSURED) 5.35 08/01/2018 1,440,264
1,000,000 DOUGLAS COUNTY CO SCHOOL DISTRICT # 1 DOUGLAS & ELBERT COUNTIES (PROPERTY
TAX REVENUE, NATL-RE INSURED, STATE AID WITHHOLDING) 5.75 12/15/2022 1,200,810
210,000 DOUGLAS COUNTY CO SCHOOL DISTRICT # 1 DOUGLAS & ELBERT COUNTIES SERIES B
(PROPERTY TAX REVENUE, STATE AID WITHHOLDING)## 2.49 12/15/2014 185,510
6,000,000 E-470 PUBLIC HIGHWAY AUTHORITY CO CAPITAL APPRECIATION SERIES A
(OTHER REVENUE, NATL-RE INSURED)## 7.05 09/01/2034 1,119,600
2,455,000 E-470 PUBLIC HIGHWAY AUTHORITY CO CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE, MBIA INSURED)## 6.04 09/01/2020 1,290,201
780,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES B2 (TOLL ROAD REVENUE, NATL-RE
INSURED)+/- 5.00 09/01/2039 808,579
625,000 EAGLE RIVER CO WATER & SANITATION DISTRICT (WATER REVENUE, ASSURED GUARANTY) 5.13 12/01/2039 639,369
2,500,000 EL PASO COUNTY CO SCHOOL DISTRICT # 11 COLORADO SPRINGS (PROPERTY TAX REVENUE,
STATE AID WITHHOLDING) 7.10 12/01/2017 3,131,200
1,000,000 FORT COLLINS CO COP SERIES A (LEASE REVENUE, AMBAC INSURED) 5.38 06/01/2025 1,050,170
715,000 GARFIELD COUNTY CO PUBLIC LIBRARY DISTRICT LEASE PURCHASE FINANCING PROGRAM
(LEASE REVENUE) 5.00 12/01/2026 735,821
1,395,000 GARFIELD COUNTY CO SCHOOL DISTRICT SERIES RE2 (PROPERTY TAX REVENUE, AGM
INSURED,
STATE AID WITHHOLDING) 5.25 12/01/2021 1,468,307
1,000,000 GLENDALE CO COP (LEASE REVENUE, XLCA INSURED) 5.00 12/01/2025 1,022,240
525,000 HIGHLANDS RANCH METROPOLITAN DISTRICT # 2 CO PREREFUNDED (PROPERTY TAX
REVENUE, FSA INSURED) 6.50 06/15/2011 570,434
475,000 HIGHLANDS RANCH METROPOLITAN DISTRICT # 2 CO UNREFUNDED BALANCE (PROPERTY
TAX REVENUE, FSA INSURED) 6.50 06/15/2011 515,437
500,000 INVERNESS WATER & SANITATION DISTRICT CO ARAPAHOE & DOUGLAS COUNTIES SERIES A
(PROPERTY TAX REVENUE, RADIAN INSURED) 4.60 12/01/2019 479,885
34 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
COLORADO TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
COLORADO (continued)
$ 2,000,000 JEFFERSON COUNTY CO SCHOOL DISTRICT # R001 (PROPERTY TAX REVENUE,
NATL-RE INSURED, STATE AID WITHHOLDINGS) 6.50% 12/15/2011 $ 2,221,380
500,000 LA JUNTA CO ARK VALLEY REGIONAL MEDICAL CENTER PROJECT (HCFR) 6.00 04/01/2019 485,800
600,000 NORTH RANGE METROPOLITAN DISTRICT # 1 CO (PROPERTY TAX REVENUE, ACA INSURED) 5.00 12/15/2024 470,112
375,000 PARK MEADOWS BUSINESS IMPROVEMENT DISTRICT CO SHARED SALES (SALES TAX REVENUE) 5.00 12/01/2017 342,113
360,000 PARK MEADOWS BUSINESS IMPROVEMENT DISTRICT CO SHARED SALES (SALES TAX REVENUE) 5.35 12/01/2031 275,119
1,190,000 PINERY WEST METROPOLITAN DISTRICT # 2 COLORADO (PROPERTY TAX REVENUE, RADIAN
INSURED) 5.00 12/01/2027 965,745
1,000,000 REGIONAL TRANSPORTATION DISTRICT CO COP TRANSIT VEHICLES (LEASE REVENUE,
AMBAC INSURED) 5.00 12/01/2022 1,051,450
1,000,000 STERLING HILLS WEST METROPOLITAN DISTRICT CO (PROPERTY TAX REVENUE, AGM
INSURED) 5.00 12/01/2031 1,030,940
600,000 SUMMIT COUNTY CO SPORTS FACILITIES KEYSTONE RESORTS MANAGEMENT PROJECT
(OTHER REVENUE) 7.38 09/01/2010 621,786
1,000,000 SUPERIOR METROPOLITAN DISTRICT # 1 CO (WATER REVENUE, AMBAC INSURED) 5.00 12/01/2028 906,650
2,000,000 UNIVERSITY OF COLORADO HOSPITAL AUTHORITY SERIES A (HCFR) 6.00 11/15/2029 2,107,960
1,980,000 VISTA RIDGE METROPOLITAN DISTRICT CO SERIES A (PROPERTY TAX REVENUE, RADIAN
INSURED) 5.00 12/01/2036 1,698,345
99,521,106
-------------
GUAM: 0.44%
500,000 GUAM GOVERNMENT LIMITED OBLIGATION SECTION 30 SERIES A (TAX REVENUE) 5.75 12/01/2034 502,975
-------------
PUERTO RICO: 1.14%
1,305,000 PUERTO RICO HIGHWAY & TRANSPORTATION AUTHORITY SERIES L
(TOLL ROAD REVENUE, NATL-RE INSURED) 5.25 07/01/2023 1,297,519
-------------
TOTAL MUNICIPAL BONDS & NOTES (COST $100,396,539) 101,321,600
-------------
SHARES YIELD
- ----------- --------
SHORT-TERM INVESTMENTS: 11.05%
MUTUAL FUNDS: 11.05%
12,526,106 WELLS FARGO ADVANTAGE NATIONAL TAX-FREE MONEY MARKET TRUST~+++(u) 0.14 12,526,106
TOTAL SHORT-TERM INVESTMENTS (COST $12,526,106) 12,526,106
TOTAL INVESTMENTS IN SECURITIES
(COST $112,922,645)* 100.42% 113,847,706
OTHER ASSETS AND LIABILITIES, NET (0.42) (479,629)
------- -------------
TOTAL NET ASSETS 100.00% $ 113,368,077
------ -------------
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as
(h) Security represents underlying bonds transferred to a separate
securitization trust established in an inverse floater transaction in which
the Portfolio residual interest certificates. This security serves as
collateral for floating rate notes issued. See note 2.
## Zero coupon security. Interest rate presented is yield to maturity.
~ The Fund invests cash balances that it retains for liquidity purposes in a
Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage Money
Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of $12,526,106.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $112,777,943 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 4,069,827
Gross unrealized depreciation (3,000,064)
-----------
Net unrealized appreciation $ 1,069,763
The accompanying notes are an integral part of these financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 35
Portfolio of Investments--December 31, 2009 (Unaudited)
MINNESOTA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MUNICIPAL BONDS & NOTES: 97.04%
GUAM: 0.43%
$ 300,000 GUAM GOVERNMENT SERIES A (GENERAL FUND REVENUE) 5.25% 11/15/2037 $ 251,649
500,000 TERRITORY OF GUAM LIMITED OBLIGATION SECTION 30 SERIES A (OTHER REVENUE) 5.00 12/01/2013 527,605
779,254
-------------
MICHIGAN: 0.72%
1,550,000 FLINT MI INTERNATIONAL ACADEMY (PUBLIC SCHOOL REVENUE) 5.50 10/01/2027 1,304,511
-------------
MINNESOTA: 94.62%
500,000 ANOKA COUNTY MN CAPITAL IMPROVEMENT SERIES A (PROPERTY TAX REVENUE) 5.00 02/01/2024 548,995
2,845,000 ANOKA-HENNEPIN MN INDEPENDENT SCHOOL DISTRICT # 11 SERIES A PREREFUNDED
(PROPERTY TAX REVENUE, AGM INSURED) 5.00 02/01/2018 2,964,547
625,000 AUSTIN MN HOUSING & RDA COURTYARD RESIDENCE PROJECT SERIES A (HOUSING REVENUE) 7.15 01/01/2020 625,594
1,500,000 AUSTIN MN HOUSING & RDA COURTYARD RESIDENCE PROJECT SERIES A (HOUSING REVENUE) 7.25 01/01/2032 1,500,465
2,150,000 BAYTOWN TOWNSHIP MN ST. CROIX PREPARATORY ACADEMY SERIES A (LEASE REVENUE) 7.00 08/01/2038 1,983,848
2,150,000 BECKER MN PCR NORTHERN STATES POWER SERIES A (IDR)+/-ss 8.50 03/01/2019 2,426,383
1,000,000 BECKER MN PCR NORTHERN STATES POWER SERIES B (IDR)+/-ss 8.50 09/01/2019 1,126,900
3,000,000 BLOOMINGTON MN INDEPENDENT SCHOOL DISTRICT # 271 SERIES B (PROPERTY TAX
REVENUE,
SCHOOL DISTRICT CREDIT PROGRAM) 5.00 02/01/2016 3,011,730
185,000 BUFFALO MN HOUSING & RDA PUBLIC FACILITY BUFFALO WILD MARSH GOLF COURSE
(LEASE REVENUE) 4.38 05/01/2024 181,990
515,000 CUYUNA RANGE HOSPITAL DISTRICT MN (HCFR) 4.50 06/01/2011 521,546
470,000 CUYUNA RANGE HOSPITAL DISTRICT MN (HCFR) 4.75 06/01/2013 480,006
807,437 DAKOTA COUNTY MN COMMUNITY DEVELOPMENT AGENCY
(SFMR, GNMA/FNMA/FHLMC INSURED) 5.30 12/01/2039 834,413
1,000,000 DULUTH MN DULUTH ENTERTAINMENT CONVENTION CENTER IMPROVEMENTS SERIES A
(PROPERTY TAX REVENUE) 5.00 02/01/2034 1,034,220
155,000 EAST GRAND FORKS MN (ELECTRIC REVENUE) 5.90 02/01/2015 155,677
255,000 EAST GRAND FORKS MN (ELECTRIC REVENUE) 6.00 02/01/2018 256,135
300,000 EAST GRAND FORKS MN (ELECTRIC REVENUE) 6.10 02/01/2021 301,359
1,000,000 ELK RIVER MN INDEPENDENT SCHOOL DISTRICT # 728 SERIES A (PROPERTY TAX REVENUE,
NATL-RE INSURED, SCHOOL DISTRICT CREDIT PROGRAM INSURED) 5.00 02/01/2018 1,042,020
100,000 FALCON HEIGHTS MN KALEIDOSCOPE CHARTER SCHOOL SERIES A (LEASE REVENUE) 5.50 11/01/2017 89,668
800,000 FALCON HEIGHTS MN KALEIDOSCOPE CHARTER SCHOOL SERIES A (LEASE REVENUE) 6.00 11/01/2027 659,120
580,000 FERGUS FALLS MN HOUSING & RDA LAKE REGION HEALTHCARE (HCFR) 5.10 09/01/2014 597,586
605,000 FERGUS FALLS MN HOUSING & RDA LAKE REGION HEALTHCARE (HCFR) 5.20 09/01/2015 622,061
560,000 FERGUS FALLS MN HOUSING & RDA LAKE REGION HEALTHCARE (HCFR) 5.30 09/01/2016 575,366
700,000 GLENCOE MN GLENCOE REGIONAL HEALTH SERVICES PROJECT (LEASE REVENUE) 7.20 04/01/2016 764,407
600,000 GLENCOE MN GLENCOE REGIONAL HEALTH SERVICES PROJECT (LEASE REVENUE) 7.40 04/01/2021 656,682
585,000 GLENCOE MN GLENCOE REGIONAL HEALTH SERVICES PROJECT (LEASE REVENUE) 7.50 04/01/2031 640,990
1,075,000 HIBBING MN DULUTH CLINIC LIMITED PREREFUNDED (HCFR, AGM INSURED) 5.50 11/01/2016 1,193,315
2,785,000 ITASCA COUNTY MN INDEPENDENT SCHOOL DISTRICT # 318 (PROPERTY TAX REVENUE,
AGM INSURED, SCHOOL DISTRICT CREDIT PROGRAM INSURED) 5.00 02/01/2017 3,005,739
160,000 LAKEVILLE MN (TOBACCO & LIQUOR TAXES REVENUE) 5.00 02/01/2013 159,362
180,000 LAKEVILLE MN (TOBACCO & LIQUOR TAXES REVENUE) 5.00 02/01/2016 172,786
500,000 LITCHFIELD MN SERIES C (ELECTRIC REVENUE, ASSURED GUARANTY) 5.00 02/01/2029 515,400
1,735,000 MAPLE GROVE MN MAPLE GROVE HOSPITAL CORPORATION (HCFR) 5.25 05/01/2024 1,794,580
800,000 MEEKER COUNTY MN MEMORIAL HOSPITAL PROJECT (HCFR) 5.63 11/01/2022 801,688
500,000 MINNEAPOLIS & ST. PAUL MN HOUSING & RDA HEALTH PARTNERS OBLIGATION
GROUP PROJECT (HCFR) 5.25 12/01/2016 508,960
500,000 MINNEAPOLIS & ST. PAUL MN HOUSING & RDA HEALTH PARTNERS OBLIGATION
GROUP PROJECT (HCFR) 5.63 12/01/2022 503,025
600,000 MINNEAPOLIS & ST. PAUL MN HOUSING & RDA HEALTH PARTNERS OBLIGATION
GROUP PROJECT (HCFR) 5.88 12/01/2029 602,562
36 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
MINNESOTA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MINNESOTA (continued)
$ 1,400,000 MINNEAPOLIS & ST. PAUL MN HOUSING & RDA HEALTHSPAN SERIES B
(HCFR, AMBAC INSURED)+/-ss(a)(m)(n) 0.36% 11/15/2017 $ 1,312,500
320,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SERIES A
(AIRPORT REVENUE, NATL-RE INSURED) 5.25 01/01/2017 336,749
2,000,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SERIES B
(AIRPORT REVENUE, AMBAC INSURED) 5.00 01/01/2020 1,996,880
2,000,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SERIES C
(AIRPORT REVENUE, FGIC INSURED) 5.00 01/01/2022 2,073,320
3,660,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SUB SERIES C
(AIRPORT REVENUE, FGIC INSURED) 5.25 01/01/2021 3,834,326
1,000,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SUBSERIES B
(AIRPORT REVENUE, NATL-RE & FGIC Insured) 5.00 01/01/2018 1,084,020
1,000,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SUBSERIES D
(AIRPORT REVENUE, NATL-RE FGIC INSURED) 5.75 01/01/2012 1,038,360
1,000,000 MINNEAPOLIS MN FAIRVIEW HEALTH SERVICES SERIES A (HCFR) 6.63 11/15/2028 1,123,610
1,900,000 MINNEAPOLIS MN FAIRVIEW HEALTH SERVICES SERIES B (HCFR, ASSURED GUARANTY) 6.50 11/15/2038 2,116,486
555,000 MINNEAPOLIS MN LIMITED TAX SUPPORTED COMMON BOARD SERIES 1A (OTHER REVENUE) 4.80 12/01/2016 572,976
500,000 MINNEAPOLIS MN ST. ANTHONY FALLS PROJECT (TAX INCREMENTAL REVENUE) 5.65 02/01/2027 430,185
5,000 MINNEAPOLIS MN ST. MARY'S HOSPITAL & REHABILITATION (HCFR) 10.00 06/01/2013 5,817
1,000,000 MINNEAPOLIS MN ST. PAUL METROPOLITAN AIRPORTS COMMISSION SERIES A
(AIRPORT REVENUE, AMBAC INSURED) 5.00 01/01/2018 1,089,820
1,115,000 MINNEAPOLIS MN SUPPORTED DEVELOPMENT LIMITED TAX-COMMON BOND FUND
SERIES 2A (OTHER REVENUE) 5.00 06/01/2028 1,031,442
4,030,000 MINNESOTA AGRICULTURAL & ECONOMIC BOARD ESSENTIA HEALTH SERIES E
(ECONOMIC DEVELOPMENT REVENUE, ASSURED GUARANTY) 5.00 02/15/2037 4,097,019
1,210,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD EVANGELICAL
LUTHERAN PROJECT (HCFR) 6.00 02/01/2022 1,244,267
2,025,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD HEALTH CARE SYSTEM
SERIES A (HCFR) 5.88 11/15/2010 2,082,834
1,935,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD HEALTH CARE SYSTEM
SERIES A PREREFUNDED (HCFR) 6.38 11/15/2022 2,056,692
1,095,000 MINNESOTA AGRICULTURAL & ECONOMIC DEVELOPMENT BOARD HEALTH CARE SYSTEM
SERIES A UNREFUNDED (ECONOMIC DEVELOPMENT REVENUE, NATL-RE INSURED) 5.50 11/15/2017 1,098,186
1,535,000 MINNESOTA HEFAR BETHEL UNIVERSITY SERIES 6R
(COLLEGE & UNIVERSITY REVENUE) 5.50 05/01/2025 1,493,064
1,030,000 MINNESOTA HEFAR ST. THOMAS UNIVERSITY SERIES 6W
(COLLEGE & UNIVERSITY REVENUE) 6.00 10/01/2025 1,104,139
1,000,000 MINNESOTA HEFAR ST. THOMAS UNIVERSITY SERIES 6W
(COLLEGE & UNIVERSITY REVENUE) 6.00 10/01/2030 1,064,850
1,000,000 MINNESOTA HEFAR ST. THOMAS UNIVERSITY SERIES 6X
(COLLEGE & UNIVERSITY REVENUE) 5.00 04/01/2029 1,023,730
1,000,000 MINNESOTA HEFAR ST. THOMAS UNIVERSITY SERIES 6X
(COLLEGE & UNIVERSITY REVENUE) 5.25 04/01/2039 1,016,120
1,175,000 MINNESOTA HFA RESIDENTIAL HOUSING FINANCE AGENCY SERIES B (HOUSING REVENUE,
GO OF AGENCY) 5.00 07/01/2034 1,179,982
995,000 MINNESOTA HOUSING FINANCE AGENCY SERIES B (STATE AGENCY HOUSING REVENUE) 5.90 07/01/2028 1,035,775
1,000,000 MINNESOTA IRON RANGE RESOURCE & REHABILITATION GIANTS RIDGE RECREATION AREA
(RECREATIONAL FACILITIES REVENUE) 7.25 11/01/2016 1,023,010
1,500,000 MINNESOTA PUBLIC FACILITIES AUTHORITY SERIES B (WATER REVENUE) 5.00 03/01/2020 1,761,855
1,115,000 MINNESOTA STATE (PROPERTY TAX REVENUE) 5.00 06/01/2020 1,241,709
895,000 MINNESOTA STATE HEFAR ST. MARYS UNIVERSITY
SERIES 5E (COLLEGE & UNIVERSITY REVENUE) 6.75 03/01/2019 897,255
1,100,000 MINNESOTA STATE HEFAR ST. THOMAS UNIVERSITY SERIES 6W
(COLLEGE & UNIVERSITY REVENUE) 5.00 10/01/2018 1,183,985
635,000 MINNESOTA STATE HEFAR STATE BENEDICT COLLEGE
SERIES V (COLLEGE & University Revenue) 5.00 03/01/2018 672,478
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 37
Portfolio of Investments--December 31, 2009 (Unaudited)
MINNESOTA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MINNESOTA (continued)
$ 1,715,000 MINNESOTA STATE HOUSING FINANCE AGENCY (HOUSING REVENUE) 4.20% 07/01/2021 $ 1,729,063
995,000 MINNESOTA STATE HOUSING FINANCE AGENCY RESIDENTIAL HOUSING FINANCE SERIES B
(HOUSING REVENUE, GO OF AGENCY) 4.75 07/01/2026 965,100
1,980,000 MINNESOTA STATE HOUSING FINANCE AGENCY RESIDENTIAL HOUSING FINANCE SERIES Q
(HOUSING REVENUE, GO OF AGENCY) 5.25 07/01/2033 1,969,427
635,000 MINNESOTA STATE HOUSING FINANCE AGENCY SERIES A (SFMR, NATL-RE INSURED) 5.35 07/01/2017 659,282
470,000 MINNESOTA STATE HOUSING FINANCE AGENCY SERIES D (SFMR, AMBAC INSURED,
GO OF AGENCY) 5.80 07/01/2021 481,205
5,000 MINNESOTA STATE HOUSING FINANCE AGENCY SERIES E (SFMR, GO OF AGENCY) 5.90 07/01/2025 5,004
1,100,000 MINNESOTA STATE MUNICIPAL POWER AGENCY (ELECTRIC REVENUE) 5.00 10/01/2037 1,106,941
3,775,000 MINNESOTA STATE PUBLIC SAFETY COMMISSION (TELECOM REVENUE, ASSURED GUARANTY) 5.00 06/01/2019 4,329,887
1,000,000 MINNESOTA STATE SERIES H (PROPERTY TAX REVENUE) 5.00 11/01/2027 1,118,540
500,000 MONTGOMERY MN INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING #394 SERIES B
(PROPERTY TAX REVENUE, AGM INSURED, SCHOOL DISTRICT CREDIT PROGRAM) 5.00 02/01/2025 538,180
510,000 MOORHEAD MN (SFMR, FHA INSURED, VA MORTGAGES) 7.10 08/01/2011 549,311
2,040,000 MOUNDS VIEW MN INDEPENDENT SCHOOL DISTRICT # 621 SERIES A (PROPERTY TAX
REVENUE, SCHOOL DISTRICT CREDIT PROGRAM INSURED) 5.38 02/01/2019 2,133,942
530,000 MOUNDS VIEW MN INDEPENDENT SCHOOL DISTRICT # 621 SERIES A (PROPERTY TAX
REVENUE, SCHOOL DISTRICT CREDIT PROGRAM INSURED) 4.00 02/01/2022 540,436
695,000 MOWER COUNTY MN HOUSING & RDA COURT FACILITIES PROJECT SERIES A (LEASE REVENUE) 5.75 02/01/2027 730,563
375,000 MOWER COUNTY MN HOUSING & RDA COURT FACILITIES PROJECT SERIES A (LEASE REVENUE) 5.90 02/01/2029 393,176
1,500,000 NORTHERN MN MUNICIPAL POWER AGENCY SERIES A (ELECTRIC REVENUE, ASSURED
GUARANTY) 5.00 01/01/2016 1,668,840
820,000 NORTHERN MN MUNICIPAL POWER AGENCY SERIES A (ELECTRIC REVENUE, GUARANTY
AGREEMENT) 5.00 01/01/2018 906,986
845,000 NORTHERN MN MUNICIPAL POWER AGENCY SERIES A (ELECTRIC REVENUE, GUARANTY
AGREEMENT) 5.00 01/01/2021 906,550
360,000 OSSEO MN ECONOMIC DEVELOPMENT AUTHORITY SERIES B (LEASE REVENUE) 5.90 02/01/2018 364,489
455,000 OSSEO MN ECONOMIC DEVELOPMENT AUTHORITY SERIES B (LEASE REVENUE) 6.00 02/01/2022 458,153
1,000,000 PINE CITY MN LAKES INTERNATIONAL LANGUAGE ACADEMY SERIES A (LEASE REVENUE) 6.00 05/01/2026 880,470
900,000 PINE CITY MN LAKES INTERNATIONAL LANGUAGE ACADEMY SERIES A (LEASE REVENUE) 6.25 05/01/2035 765,063
1,475,000 PINE COUNTY MN HOUSING & RDA PUBLIC PROJECT SERIES A (LEASE REVENUE) 5.00 02/01/2028 1,474,941
250,000 PLYMOUTH MN COP INTERMEDIATE SCHOOL DISTRICT # 287 SERIES A (LEASE REVENUE) 5.00 02/01/2024 267,618
300,000 ROBBINSDALE MN ECONOMIC DEVELOPMENT AUTHORITY HOUSING PROJECT SERIES A
(HOUSING REVENUE) 6.63 01/01/2019 300,000
1,000,000 ROBBINSDALE MN INDEPENDENT SCHOOL DISTRICT # 281 (PROPERTY TAX REVENUE,
AGM INSURED, SCHOOL DISTRICT CREDIT PROGRAM) 5.00 02/01/2019 1,069,360
1,000,000 ROCHESTER MN HEALTH CARE & HOUSING REVENUE SAMARITAN BETHANY SERIES A (HCFR) 7.38 12/01/2041 983,640
2,000,000 ROCHESTER MN MAYO FOUNDATION MAYO MEDICAL CENTER SERIES I (HCFR) 5.90 11/15/2010 2,091,860
1,000,000 ROCHESTER MN SERIES C (ELECTRIC REVENUE) 5.00 12/01/2030 1,052,460
2,000,000 ROSEMOUNT MN INDEPENDENT SCHOOL DISTRICT # 196 SERIES A (PROPERTY TAX REVENUE,
SCHOOL DISTRICT CREDIT PROGRAM INSURED)## 0.69 04/01/2011 1,984,340
3,250,000 SEAWAY PORT AUTHORITY OF DULUTH MN INDUSTRIAL DEVELOPMENT DOCK & Wharf
REVENUE CARGILL INCORPORATED PROJECT (IDR) 4.20 05/01/2013 3,347,695
950,000 SHAKOPEE MN ST. FRANCIS REGIONAL MEDICAL CENTER (HCFR) 5.25 09/01/2034 877,145
660,000 SOUTH ST. PAUL MN HOUSING & RDA AIRPORT PROJECT (IDR, ASSURED GUARANTY) 4.70 09/01/2019 635,857
500,000 SOUTH ST. PAUL MN HOUSING & RDA AIRPORT PROJECT (IDR, ASSURED GUARANTY) 5.13 09/01/2029 477,020
5,000,000 SOUTHERN MN MUNICIPAL POWER AGENCY CAPITAL APPRECIATION SERIES A (ELECTRIC
REVENUE, NATL-RE INSURED)## 3.96 01/01/2020 3,338,550
2,000,000 SOUTHERN MN MUNICIPAL POWER AGENCY SERIES A (ELECTRIC REVENUE) 5.25 01/01/2030 2,102,460
1,750,000 ST. CLOUD MN ST. CLOUD HOSPITAL OBLIGATORY GROUP SERIES A (HCFR, AGM INSURED) 5.38 05/01/2011 1,788,658
770,000 ST. CLOUD MN ST. CLOUD HOSPITAL OBLIGATORY GROUP SERIES A (HCFR, AGM INSURED) 6.25 05/01/2017 789,196
1,000,000 ST. CLOUD MN ST. CLOUD HOSPITAL OBLIGATORY GROUP SERIES A (HCFR, AGM INSURED) 6.25 05/01/2018 1,016,040
4,875,000 ST. CLOUD MN ST. CLOUD HOSPITAL OBLIGATORY GROUP SERIES A (HCFR, AGM INSURED) 5.75 05/01/2026 4,939,253
1,000,000 ST. LOUIS PARK MN NICOLLETT HEALTH SERVICES (HCFR) 5.50 07/01/2029 989,390
38 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Portfolio of Investments--December 31, 2009 (Unaudited)
MINNESOTA TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MINNESOTA (CONTINUED)
$ 1,050,000 ST. MICHAEL MN INDEPENDENT SCHOOL DISTRICT # 885 (PROPERTY TAX REVENUE, AGM
INSURED, SCHOOL DISTRICT CREDIT PROGRAM) 5.00% 02/01/2018 $ 1,127,018
2,000,000 ST. MICHAEL MN INDEPENDENT SCHOOL DISTRICT # 885 (PROPERTY TAX REVENUE,
AGM INSURED, SCHOOL DISTRICT CREDIT PROGRAM) 5.00 02/01/2019 2,146,700
2,000,000 ST. PAUL MN HOUSING & RDA ALLINA HEALTH SYSTEMS SERIES A 1 (HCFR) 5.00 11/15/2024 1,981,260
1,500,000 ST. PAUL MN HOUSING & RDA COMMUNITY OF PEACE ACADEMY PROJECT SERIES A
(OTHER REVENUE) 5.00 12/01/2036 1,177,695
2,000,000 ST. PAUL MN HOUSING & RDA COMMUNITY OF PEACE ACADEMY PROJECT SERIES A
(TAX REVENUE) 7.88 12/01/2030 2,175,140
225,000 ST. PAUL MN HOUSING & RDA GILLETTE CHILDRENS SPECIALTY (HCFR) 5.00 02/01/2012 228,591
200,000 ST. PAUL MN HOUSING & RDA GILLETTE CHILDRENS SPECIALTY (HCFR) 5.00 02/01/2013 204,982
225,000 ST. PAUL MN HOUSING & RDA GILLETTE CHILDRENS SPECIALTY (HCFR) 5.00 02/01/2014 230,409
200,000 ST. PAUL MN HOUSING & RDA GILLETTE CHILDRENS SPECIALTY (HCFR) 5.00 02/01/2015 198,312
650,000 ST. PAUL MN HOUSING & RDA HMONG ACADEMY PROJECT SERIES A (PRIVATE SCHOOLS
REVENUE) 5.75 09/01/2026 555,919
500,000 ST. PAUL MN HOUSING & RDA HMONG ACADEMY PROJECT SERIES A (PRIVATE SCHOOLS
REVENUE) 6.00 09/01/2036 409,560
1,700,000 ST. PAUL MN HOUSING & RDA REGIONS HOSPITAL PROJECT (HCFR) 5.25 05/15/2018 1,700,000
3,000,000 ST. PAUL MN HOUSING & RDA REGIONS HOSPITAL PROJECT (HCFR) 5.30 05/15/2028 2,825,160
2,000,000 ST. PAUL MN HOUSING & RDA ST. PAUL ACADEMY & SUMMIT (PRIVATE SCHOOLS
REVENUE) 5.00 10/01/2024 2,083,280
95,000 STEELE COUNTY MN ELDERLY HOUSING PROJECT (HCFR) 6.63 06/01/2020 97,127
5,000 STEELE COUNTY MN ELDERLY HOUSING PROJECT UNREFUNDED (HCFR) 6.63 06/01/2020 5,033
1,000,000 TODD MORRISON CASS & WADENA COUNTIES MN UNITED HOSPITAL DISTRICT LAKEWOOD
(PROPERTY TAX REVENUE) 5.13 12/01/2024 1,035,730
1,720,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE & UNIVERSITY REVENUE, GO OF
UNIVERSITY) 5.75 07/01/2017 2,019,916
1,180,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE & UNIVERSITY REVENUE, GO OF
UNIVERSITY) 5.00 04/01/2021 1,330,002
7,310,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE & UNIVERSITY REVENUE, GO OF
UNIVERSITY) 5.50 07/01/2021 8,477,553
1,000,000 UNIVERSITY OF MINNESOTA SERIES A (COLLEGE & UNIVERSITY REVENUE, GO OF
UNIVERSITY) 5.13 04/01/2034 1,069,600
1,275,000 UNIVERSITY OF MINNESOTA SERIES C (COLLEGE & UNIVERSITY REVENUE, GO OF
UNIVERSITY) 5.00 12/01/2020 1,445,531
5,000,000 UNIVERSITY OF MINNESOTA STATE SUPPORTED STADIUM DEBT (COLLEGE & UNIVERSITY
REVENUE) 5.00 08/01/2025 5,317,650
2,085,000 VIRGINIA MN HOUSING & RDA HEALTHCARE FACILITY (LEASE REVENUE) 5.25 10/01/2025 1,977,748
2,495,000 WASHINGTON COUNTY MN CAPITAL IMPROVEMENT PLAN SERIES A (PROPERTY TAX REVENUE) 5.00 02/01/2021 2,783,472
280,000 WESTERN MINNESOTA MUNICIPAL POWER AGENCY (ELECTRIC REVENUE, NATL-RE INSURED) 9.75 01/01/2016 383,734
190,000 WESTERN MINNESOTA MUNICIPAL POWER AGENCY SERIES A (ELECTRIC REVENUE) 6.38 01/01/2016 214,563
330,000 WINONA MN WINONA HEALTH OBLIGATED GROUP (HCFR) 4.40 07/01/2010 331,950
172,442,292
-------------
PUERTO RICO: 0.29%
25,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES II PREREFUNDED (ELECTRIC REVENUE,
XLCA INSURED) 5.25 07/01/2022 28,013
500,000 UNIVERSITY OF PUERTO RICO SERIES Q (COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2016 504,075
532,088
-------------
VIRGIN ISLANDS: 0.98%
1,000,000 VIRGIN ISLANDS PFA MATCHING FUND LOAN NOTES SERIES A (OTHER REVENUE) 6.00 10/01/2039 1,000,620
750,000 VIRGIN ISLANDS PFA SENIOR LIEN MATCHING FUND LOAN NOTES SERIES A (SEWER
REVENUE) 5.00 10/01/2014 793,244
1,793,864
-------------
TOTAL MUNICIPAL BONDS & NOTES (COST $170,742,128) 176,852,009
-------------
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 39
Portfolio of Investments--December 31, 2009 (Unaudited)
MINNESOTA TAX-FREE FUND
SHARES SECURITY NAME YIELD VALUE
- ----------- ------------------------------------------------------------------------------ -------- -------------
SHORT-TERM INVESTMENTS: 1.96%
MUTUAL FUNDS: 1.96%
3,568,301 WELLS FARGO ADVANTAGE MINNESOTA TAX-FREE MONEY MARKET FUND CLASS A~+++(U) 0.01% $ 3,568,301
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,568,301) 3,568,301
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $174,310,429)* 99.00% 180,420,310
OTHER ASSETS AND LIABILITIES, NET 1.00 1,820,415
------- -------------
TOTAL NET ASSETS 100.00% $ 182,240,725
------- -------------
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
## Zero coupon security. Interest rate presented is yield to maturity.
~ The Fund invests cash balances that it retains for liquidity purposes in a
Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage Money
Market Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of $3,568,301.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $174,461,497 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 7,529,462
Gross unrealized depreciation (1,570,649)
-----------
Net unrealized appreciation $ 5,958,813
The accompanying notes are an integral part of these financial statements.
40 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Statements of Assets and Liabilities--December 31, 2009 (Unaudited)
CALIFORNIA
LIMITED-TERM CALIFORNIA COLORADO
TAX-FREE TAX-FREE TAX-FREE MINNESOTA
FUND FUND FUND TAX-FREE FUND
------------ ------------ ------------- -------------
ASSETS
Investments
In unaffiliated securities, at value .................... $214,929,992 $515,571,303 $ 101,321,600 $ 176,852,009
In affiliated securities, at value ...................... 17,222,905 12,718,647 12,526,106 3,568,301
------------ ------------ ------------- -------------
Total Investments at value (see cost below) ................ 232,152,897 528,289,950 113,847,706 180,420,310
------------ ------------ ------------- -------------
Cash ....................................................... 50,000 50,000 50,000 50,000 --
Receivable for Fund shares issued .......................... 2,622,574 2,579,743 107,816 30,232
Receivable for interest .................................... 2,898,798 6,657,031 1,079,665 2,787,345
------------ ------------ ------------- -------------
Total Assets .................................................. 237,724,269 537,576,724 115,085,187 183,287,887
------------ ------------ ------------- -------------
LIABILITIES
Payable for floating rate notes issued ..................... 0 0 1,085,000 0
Payable for Fund shares redeemed ........................... 63,835 568,248 278,492 540,392
Payable for investment purchased ........................... 2,736,140 99,421 0 0
Dividends payable .......................................... 335,588 825,319 263,788 367,580
Payable to investment advisor and affiliates ............... 163,563 403,207 77,995 119,787
Accrued expenses and other liabilities ..................... 11,751 58,895 11,835 19,403
------------ ------------ ------------- -------------
Total liabilties .............................................. 3,310,877 1,955,090 1,717,110 1,047,162 --
------------ ------------ ------------- -------------
TOTAL NET ASSETS .............................................. $234,413,392 $535,621,634 $ 113,368,077 $ 182,240,725
------------ ------------ ------------- -------------
NET ASSETS CONSIST OF
Paid-in capital ............................................ $233,147,504 $536,680,630 $ 113,188,903 $ 175,823,860
Undistributed net investment income ........................ 167,761 60,287 124,647 493,672
Accumulated net realized loss on investments ............... (1,383,613) (11,800,839) (870,534) (186,688)
Net unrealized appreciation (depreciation) of investments .. 2,481,740 10,681,556 925,061 6,109,881
------------ ------------ ------------- -------------
TOTAL NET ASSETS .............................................. $234,413,392 $535,621,634 $ 113,368,077 $ 182,240,725
============ ============ ============= =============
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
Net assets - Class A ....................................... $ 95,421,649 $371,414,419 $ 62,228,728$ 53,655,829
Shares outstanding - Class A ............................... 9,110,643 35,059,878 6,048,151 5,031,372
Net asset value per share - Class A ........................ $ 10.47 $ 10.59 $ 10.29 $ 10.66
Maximum offering price per share - Class A ................. $ 10.79(2) $ 11.09(3) $ 10.77(3) $ 11.16(3)
Net assets - Class B ....................................... NA $ 7,688,444 $ 484,479 $ 1,604,718
Shares outstanding - Class B ............................... NA 711,164 47,029 150,486
Net asset value per share - Class B ........................ NA $ 10.81 $ 10.30 $ 10.66
Net assets - Class C ....................................... $ 22,576,922 $ 33,395,386 $ 3,004,885 $ 5,350,390
Shares outstanding - Class C ............................... 2,155,932 3,091,095 291,804 501,762
Net asset value per share - Class C ........................ $ 10.47 $ 10.80 $ 10.30 $ 10.66
Net assets - Administrator Class ........................... $116,414,821 $123,123,385 $ 47,649,985 $ 121,629,788
Shares outstanding - Administrator Class ................... 11,290,617 11,598,385 4,631,195 11,408,173
Net asset value per share - Administrator Class ............ $ 10.31 $ 10.62 $ 10.29 $ 10.66
------------ ------------ ------------- -------------
Investments at cost ........................................... $229,671,157 $517,608,394 $ 112,922,645 $ 174,310,429
------------ ------------ ------------- -------------
- ----------
(1.) Each Fund has an unlimited number of authorized shares.
(2.) Maximum offering price is computed as 100/97 of net asset value. On
investments of $50,000 or more, the offering price is reduced.
(3.) Maximum offering price is computed as 100/95.50 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 MUNICIPAL INCOME FUNDS 41
Statements of Operations--For the Six Months Ended December 31, 2009 (Unaudited)
CALIFORNIA
LIMITED-
TERM CALIFORNIA COLORADO MINNESOTA
TAX-FREE TAX-FREE TAX-FREE TAX-FREE
FUND FUND FUND FUND
----------- ----------- ---------- ----------
INVESTMENT INCOME
Interest from unaffiliated securities .............. $ 3,240,715 $13,211,132 $2,615,609 $4,598,422
Interest from affiliated securities ................ 5,187 2,039 3,738 174
----------- ----------- ---------- ----------
Total investment income ............................... 3,245,902 13,213,171 2,619,347 4,598,596
----------- ----------- ---------- ----------
EXPENSES
Advisory fees ...................................... 292,397 884,448 191,929 329,093
Administration fees
Fund level ...................................... 41,771 126,459 27,418 47,013
Class A ............................................ 62,055 340,220 53,880 47,976
Class B ............................................ NA 8,775 717 1,693
Class C ............................................ 12,298 28,729 1,805 4,358
Administrator Class ................................ 42,235 43,073 23,502 64,012
Custody fees ....................................... 9,850 33,214 7,357 12,718
Shareholder servicing fees ......................... 204,745 625,051 132,092 233,491
Accounting fees .................................... 5,617 13,340 5,533 7,704
Distribution fees
Class B ......................................... NA 36,562 2,989 7,052
Class C ......................................... 51,240 119,702 7,523 18,157
Interest expenses and fees ......................... 0 0 2,330 0
Professional fees .................................. 16,488 19,004 16,795 19,101
Registration fees .................................. 4,084 3,619 4,598 8,159
Shareholder reports ................................ 6,148 35,138 6,400 13,160
Trustees' fees ..................................... 5,419 5,419 5,419 5,419
Other fees and expenses ............................ 2,029 6,614 2,559 3,223
----------- ----------- ---------- ----------
Total expenses ........................................ 756,376 2,329,367 492,846 822,329
----------- ----------- ---------- ----------
LESS
Waived fees ........................................ (100,571) (257,231) (72,539) (157,833)
Net expenses ....................................... 655,805 2,072,136 420,307 664,496
----------- ----------- ---------- ----------
Net investment income ................................. 2,590,097 11,141,035 2,199,040 3,934,100
----------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Unaffiliated securities ............................ (1,090,897) (3,856,074) (168,551) 33,449
----------- ----------- ---------- ----------
Net realized gain (loss) on investments ............... (1,090,897) (3,856,074) (168,551) 33,449
----------- ----------- ---------- ----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Unaffiliated securities ............................ 3,584,195 24,189,450 4,203,179 5,445,075
----------- ----------- ---------- ----------
Net change in unrealized appreciation (depreciation) of
investments ........................................ 3,584,195 24,189,450 4,203,179 5,445,075
----------- ----------- ---------- ----------
Net realized and unrealized gain (loss) on investments 2,493,298 20,333,376 4,034,628 5,478,524
----------- ----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .. $ 5,083,395 $31,474,411 $6,233,668 $9,412,624
----------- ----------- ---------- ----------
The accompanying notes are an integral part of these financial statements.
42 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Statements of Changes in Net Assets
CALIFORNIA LIMITED-TERM TAX-FREE FUND
-------------------------------------
For the
Six Months Ended For the
December 31, 2009 Year Ended
(Unaudited) June 30, 2009
----------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets ............................................................. $112,645,193 $ 85,808,398
OPERATIONS
Net investment income ............................................................ 2,590,097 3,553,306
Net realized gain (loss) on investments .......................................... (1,090,897) 114,053
Net change in unrealized appreciation (depreciation) of investments .............. 3,584,195 (472,318)
------------ ------------
Net increase (decrease) in net assets resulting from operations ..................... 5,083,395 3,195,041
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ....................................................................... (1,042,517) (1,539,106)
Class B ....................................................................... NA NA
Class C ....................................................................... (147,986) (143,744)
Administrator Class ........................................................... (1,392,615) (1,843,447)
Net realized gains
Class A ....................................................................... 0 0
Class B ....................................................................... NA NA
Class C ....................................................................... 0 0
Administrator Class ........................................................... 0 0
------------ ------------
Total distributions to shareholders ................................................. (2,583,118) (3,526,297)
------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A .............................................. 55,086,585 32,349,439
Reinvestment of distributions - Class A .......................................... 706,346 1,074,390
Cost of shares redeemed - Class A ................................................ (7,747,513) (24,268,188)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions
- Class A ..................................................................... 48,045,418 9,155,641
------------ ------------
Proceeds from shares sold - Class B .............................................. NA NA
Reinvestment of distributions - Class B .......................................... NA NA
Cost of shares redeemed - Class B ................................................ NA NA
------------ ------------
Net decrease in net assets resulting from capital share transactions - Class B ... NA NA
------------ ------------
Proceeds from shares sold - Class C .............................................. 16,858,421 2,895,163
Reinvestment of distributions - Class C .......................................... 110,054 113,082
Cost of shares redeemed - Class C ................................................ (589,225) (1,619,750)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions
- Class C ..................................................................... 16,379,250 1,388,495
------------ ------------
Proceeds from shares sold - Administrator Class .................................. 76,486,734 46,391,166
Reinvestment of distributions - Administrator Class .............................. 306,235 504,780
Cost of shares redeemed - Administrator Class .................................... (21,949,715) (30,272,031)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions
- Administrator Class ......................................................... 54,843,254 16,623,915
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions -
Total ............................................................................ 119,267,922 27,168,051
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ............................................... 121,768,199 26,836,795
============ ============
ENDING NET ASSETS ................................................................... $234,413,392 $112,645,193
============ ============
Ending balance of undistributed net investment income ............................... $ 167,761 $ 160,782
------------ ------------
The accompanying notes are an integral part of these financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 43
Statements of Changes in Net Assets
CALIFORNIA TAX-FREE FUND COLORADO TAX-FREE FUND MINNESOTA TAX-FREE FUND
- --------------------------------- --------------------------------- ---------------------------------
For the For the For the
Six Months Ended For the Six Months Ended For the Six Months Ended For the
December 31, 2009 Year Ended December 31, 2009 Year Ended December 31, 2009 Year Ended
(Unaudited) June 30, 2009 (Unaudited) June 30, 2009 (Unaudited) June 30, 2009
- ----------------- ------------- ----------------- ------------- ----------------- -------------
$ 465,284,614 $508,481,016 $ 99,752,732 $94,490,769 $177,983,708 $164,844,658
11,141,035 22,687,056 2,199,040 4,321,579 3,934,100 7,676,764
(3,856,074) (4,919,792) (168,551) (695,700) 33,449 234,134
24,189,450 (20,238,235) 4,203,179 (3,147,831) 5,445,075 (2,922,146)
------------- ------------ ------------ ----------- ------------ ------------
31,474,411 (2,470,971) 6,233,668 478,048 9,412,624 4,988,752
------------- ------------ ------------ ----------- ------------ ------------
(8,383,728) (16,990,529) (1,239,443) (2,146,053) (1,086,000) (1,971,458)
(181,301) (698,776) (13,577) (70,856) (31,321) (107,720)
(584,803) (1,102,411) (33,823) (24,118) (79,907) (108,100)
(1,991,205) (3,895,338) (1,033,531) (2,050,310) (2,766,649) (5,460,844)
0 0 0 (40,732) (55,691) (25,029)
0 0 0 (1,719) (1,661) (1,738)
0 0 0 (521) (5,637) (1,780)
0 0 0 (38,222) (127,963) (70,239)
------------- ------------ ------------ ----------- ------------ ------------
(11,141,037) (22,687,054) (2,320,374) (4,372,531) (4,154,829) (7,746,908)
------------- ------------ ------------ ----------- ------------ ------------
28,595,531 57,243,194 9,708,344 17,343,240 4,902,548 13,967,374
5,492,319 11,129,535 762,595 1,417,338 846,107 1,494,889
(29,746,355) (74,023,834) (4,239,707) (9,228,114) (2,450,713) (9,364,358)
------------- ------------ ------------ ----------- ------------ ------------
4,341,495 (5,651,105) 6,231,232 9,532,464 3,297,942 6,097,905
------------- ------------ ------------ ----------- ------------ ------------
45 67,401 0 0 7,421 0
115,310 480,413 8,070 44,672 21,722 74,629
(4,842,545) (13,385,486) (631,450) (1,719,463) (652,263) (1,980,216)
------------- ------------ ------------ ----------- ------------ ------------
(4,727,190) (12,837,672) (623,380) (1,674,791) (623,120) (1,905,587)
------------- ------------ ------------ ----------- ------------ ------------
6,814,718 4,755,532 2,104,394 720,892 1,385,119 2,500,186
377,735 715,647 26,728 19,425 68,148 86,468
(2,823,681) (5,688,752) (230,858) (76,614) (380,259) (507,350)
------------- ------------ ------------ ----------- ------------ ------------
4,368,772 (217,573) 1,900,264 663,703 1,073,008 2,079,304
------------- ------------ ------------ ----------- ------------ ------------
56,123,564 29,659,951 6,161,240 9,584,912 9,249,270 48,243,559
797,816 1,278,030 125,613 268,216 1,208,931 1,900,671
(10,900,811) (30,270,008) (4,092,918) (9,218,058) (15,206,809) (40,518,646)
------------- ------------ ------------ ----------- ------------ ------------
46,020,569 667,973 2,193,935 635,070 (4,748,608) 9,625,584
------------- ------------ ------------ ----------- ------------ ------------
50,003,646 (18,038,377) 9,702,051 9,156,446 (1,000,778) 15,897,206
------------- ------------ ------------ ----------- ------------ ------------
70,337,020 (43,196,402) 13,615,345 5,261,963 4,257,017 13,139,050
============= ============ ============ =========== ============ ============
$ 535,621,634 $465,284,614 $113,368,077 $99,752,732 $182,240,725 $177,983,708
============= ============ ============ =========== ============ ============
$ 60,287 $ 60,289 $ 124,647 $ 245,981 $ 493,672 $ 523,449
------------- ------------ ------------ ----------- ------------ ------------
44 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Statements of Changes in Net Assets
CALIFORNIA LIMITED-TERM TAX-FREE FUND
-------------------------------------
For the
Six Months Ended For the
December 31, 2009 Year Ended
(Unaudited) June 30, 2009
----------------- -------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ................................................................. 5,277,904 3,177,947
Shares issued in reinvestment of distributions - Class A .............................. 67,789 105,176
Shares redeemed - Class A ............................................................. (742,610) (2,404,224)
---------- ----------
Net increase (decrease) in net assets resulting from capital share transactions -
Class A ............................................................................ 4,603,083 878,899
---------- ----------
Shares sold - Class B ................................................................. NA NA
Shares issued in reinvestment of distributions - Class B .............................. NA NA
Shares redeemed - Class B ............................................................. NA NA
---------- ----------
Net decrease in net assets resulting from capital share transactions - Class B ........ NA NA
---------- ----------
Shares sold - Class C ................................................................. 1,617,181 282,245
Shares issued in reinvestment of distributions - Class C .............................. 10,550 11,078
Shares redeemed - Class C ............................................................. (56,458) (158,438)
---------- ----------
Net increase (decrease) in net assets resulting from capital share transactions -
Class C ............................................................................ 1,571,273 134,885
---------- ----------
Shares sold - Administrator Class ..................................................... 7,453,284 4,611,105
Shares issued in reinvestment of distributions - Administrator Class .................. 29,843 50,195
Shares redeemed - Administrator Class ................................................. (2,142,575) (3,030,410)
---------- ----------
Net increase (decrease) in net assets resulting from capital share transactions -
Administrator Class ................................................................ 5,340,552 1,630,890
---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .. 11,514,908 2,644,674
---------- ----------
The accompanying notes are an integral part of these financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 45
Statements of Changes in Net Assets
CALIFORNIA TAX-FREE FUND COLORADO TAX-FREE FUND MINNESOTA TAX-FREE FUND
- --------------------------------- --------------------------------- --------------------------------
For the For the For the
Six Months Ended For the Six Months Ended For the Six Months Ended For the
December 31, 2009 Year Ended December 31, 2009 Year Ended December 31, 2009 Year Ended
(Unaudited) June 30, 2009 (Unaudited) June 30, 2009 (Unaudited) June 30, 2009
- ----------------- ------------- ----------------- ------------- ----------------- -------------
2,710,857 5,655,900 948,417 1,759,458 462,108 1,362,671
521,207 1,101,497 74,465 144,062 79,483 145,986
(2,824,410) (7,378,590) (415,129) (939,479) (230,692) (918,636)
---------- ---------- -------- --------- ---------- ----------
407,654 (621,193) 607,753 964,041 310,899 590,021
---------- ---------- -------- --------- ---------- ----------
4 6,887 0 0 694 0
10,746 46,568 789 4,541 2,043 7,295
(451,646) (1,286,526) (61,817) (174,321) (61,324) (192,781)
---------- ---------- -------- --------- ---------- ----------
(440,896) (1,233,071) (61,028) (169,780) (58,587) (185,486)
---------- ---------- -------- --------- ---------- ----------
634,135 453,637 205,181 73,097 129,236 244,110
35,139 69,459 2,602 1,979 6,398 8,451
(263,924) (549,395) (22,175) (7,723) (35,719) (49,923)
---------- ---------- -------- --------- ---------- ----------
405,350 (26,299) 185,608 67,353 99,915 202,638
---------- ---------- -------- --------- ---------- ----------
5,274,895 2,895,979 603,561 972,612 873,864 4,727,453
75,468 126,137 12,267 27,330 113,567 185,807
(1,036,903) (3,023,585) (401,545) (949,409) (1,430,229) (3,951,302)
---------- ---------- -------- --------- ---------- ----------
4,313,460 (1,469) 214,283 50,533 (442,798) 961,958
---------- ---------- -------- --------- ---------- ----------
4,685,568 (1,882,032) 946,616 912,147 (90,571) 1,569,131
---------- ---------- -------- --------- ---------- ----------
The accompanying notes are an integral part of these financial statements.
46 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income on Investments Income
--------- ---------- -------------- -------------
CALIFORNIA LIMITED-TERM TAX-FREE FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.29 0.16 0.19 (0.17)
July 1, 2008 to June 30, 2009 .................. $10.30 0.39 (0.01) (0.39)
July 1, 2007 to June 30, 2008 .................. $10.36 0.38 (0.06) (0.38)
July 1, 2006 to June 30, 2007 .................. $10.34 0.36 0.02 (0.36)
July 1, 2005 to June 30, 2006 .................. $10.60 0.30 (0.24) (0.29)
July 1, 2004 to June 30, 2005 .................. $10.46 0.28 0.15 (0.27)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.29 0.10 0.20 (0.12)
July 1, 2008 to June 30, 2009 .................. $10.30 0.30 (0.00) (0.31)
July 1, 2007 to June 30, 2008 .................. $10.36 0.31 (0.07) (0.30)
July 1, 2006 to June 30, 2007 .................. $10.34 0.30 0.01 (0.29)
July 1, 2005 to June 30, 2006 .................. $10.59 0.22 (0.23) (0.21)
July 1, 2004 to June 30, 2005 .................. $10.46 0.20 0.14 (0.19)
Administrator Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.13 0.17 0.19 (0.18)
July 1, 2008 to June 30, 2009 .................. $10.14 0.41 (0.01) (0.41)
July 1, 2007 to June 30, 2008 .................. $10.20 0.39 (0.05) (0.40)
July 1, 2006 to June 30, 2007 .................. $10.18 0.38 0.02 (0.38)
July 1, 2005 to June 30, 2006 .................. $10.43 0.32 (0.23) (0.31)
July 1, 2004 to June 30, 2005 .................. $10.29 0.31 0.15 (0.30)
CALIFORNIA TAX-FREE FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.14 0.24 0.45 (0.24)
July 1, 2008 to June 30, 2009 .................. $10.64 0.49 (0.50) (0.49)
July 1, 2007 to June 30, 2008 .................. $11.02 0.48 (0.35) (0.48)
July 1, 2006 to June 30, 2007 .................. $11.00 0.48 0.05 (0.48)
July 1, 2005 to June 30, 2006 .................. $11.51 0.48 (0.40) (0.48)
July 1, 2004 to June 30, 2005 .................. $11.01 0.49 0.56 (0.49)
Class B
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.35 0.22 0.44 (0.20)
July 1, 2008 to June 30, 2009 .................. $10.86 0.42 (0.50) (0.43)
July 1, 2007 to June 30, 2008 .................. $11.24 0.42 (0.36) (0.41)
July 1, 2006 to June 30, 2007 .................. $11.22 0.41 0.05 (0.41)
July 1, 2005 to June 30, 2006 .................. $11.74 0.41 (0.41) (0.41)
July 1, 2004 to June 30, 2005 .................. $11.22 0.40 0.58 (0.40)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.35 0.20 0.45 (0.20)
July 1, 2008 to June 30, 2009 .................. $10.85 0.42 (0.50) (0.42)
July 1, 2007 to June 30, 2008 .................. $11.24 0.41 (0.36) (0.41)
July 1, 2006 to June 30, 2007 .................. $11.22 0.41 0.05 (0.41)
July 1, 2005 to June 30, 2006 .................. $11.74 0.41 (0.41) (0.41)
July 1, 2004 to June 30, 2005 .................. $11.22 0.40 0.58 (0.40)
- ----------
(1.) 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.
(2.) Commencement of class operations.
(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.) Calculated based upon average shares outstanding.
(5.) On July 18, 2008, Class Z was converted to Administrator Class.
The accompanying notes are an integral part of these financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 47
Financial Highlights
Ratio to Average Net Assets
Ending (Annualized)
Distributions Net Asset ------------------------------------ Portfolio Net Assets at
from Net Value Per Net Investment Gross Net Total Turnover End of Period
Realized Gains Share Income (Loss) Expenses Expenses Return(1) Rate(3) (000's omitted)
- -------------- --------- -------------- -------- -------- --------- --------- ---------------
0.00 $10.47 3.82% 0.88% 0.85% 3.37% 12% $ 95,422
0.00 $10.29 3.82% 0.95% 0.85% 3.77% 64% $ 46,372
0.00 $10.30 3.63% 1.09% 0.85% 3.09% 69% $ 37,376
0.00 $10.36 3.50% 1.09% 0.85% 3.74% 80% $ 41,140
(0.03) $10.34 2.85% 1.09% 0.85% 0.58% 82% $ 39,433
(0.02) $10.60 2.63% 1.08% 0.85% 4.20% 111% $ 52,029
0.00 $10.47 3.07% 1.63% 1.60% 2.97% 12% $ 22,577
0.00 $10.29 3.07% 1.69% 1.60% 2.99% 64% $ 6,014
0.00 $10.30 2.88% 1.83% 1.60% 2.32% 69% $ 4,632
0.00 $10.36 2.75% 1.84% 1.60% 2.97% 80% $ 5,006
(0.03) $10.34 2.09% 1.85% 1.60% (0.08)% 82% $ 6,894
(0.02) $10.59 1.88% 1.83% 1.60% 3.33% 111% $ 10,273
0.00 $10.31 4.08% 0.81% 0.60% 3.53% 12% $116,415
0.00 $10.13 4.08% 0.87% 0.60% 4.03% 64% $ 60,259
0.00 $10.14 3.85% 0.91% 0.60% 3.34% 69% $ 43,800
0.00 $10.20 3.74% 0.91% 0.60% 4.00% 80% $ 24,600
(0.03) $10.18 3.11% 0.91% 0.60% 0.89% 82% $ 20,677
(0.02) $10.43 2.93% 0.79% 0.60% 4.54% 111% $ 17,707
0.00 $10.59 4.54% 0.87% 0.80% 6.79% 14% $371,414
0.00 $10.14 4.85% 0.88% 0.80% 0.06% 44% $351,526
(0.03) $10.64 4.42% 1.02% 0.80% 1.25% 43% $375,441
(0.03) $11.02 4.31% 1.03% 0.80% 4.89% 49% $365,396
(0.11) $11.00 4.32% 1.04% 0.80% 0.76% 48% $350,038
(0.06) $11.51 4.36% 1.05% 0.80% 9.72% 30% $371,633
0.00 $10.81 3.81% 1.63% 1.55% 6.40% 14% $ 7,688
0.00 $10.35 4.08% 1.64% 1.55% (0.69)% 44% $ 11,926
(0.03) $10.86 3.68% 1.77% 1.55% 0.57% 43% $ 25,900
(0.03) $11.24 3.57% 1.78% 1.55% 4.11% 49% $ 42,839
(0.11) $11.22 3.56% 1.79% 1.55% (0.00)% 48% $ 54,258
(0.06) $11.74 3.52% 1.79% 1.55% 8.90% 30% $ 66,182
0.00 $10.80 3.75% 1.62% 1.55% 6.30% 14% $ 33,395
0.00 $10.35 4.10% 1.63% 1.55% (0.60)% 44% $ 27,786
(0.03) $10.85 3.69% 1.76% 1.55% 0.47% 43% $ 29,438
(0.03) $11.24 3.56% 1.78% 1.55% 4.11% 49% $ 29,732
(0.11) $11.22 3.56% 1.79% 1.55% (0.00)% 48% $ 29,168
(0.06) $11.74 3.52% 1.79% 1.55% 8.89% 30% $ 31,904
48 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income on Investments Income
--------- ---------- -------------- -------------
CALIFORNIA TAX-FREE FUND (continued)
Administrator Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.16 0.25 0.46 (0.25)
July 1, 2008 to June 30, 2009 .................. $10.66 0.52 (0.50) (0.52)
July 1, 2007 to June 30, 2008 .................. $11.04 0.51 (0.35) (0.51)
July 1, 2006 to June 30, 2007 .................. $11.03 0.51 0.04 (0.51)
July 1, 2005 to June 30, 2006 .................. $11.54 0.51 (0.40) (0.51)
July 1, 2004 to June 30, 2005 .................. $11.03 0.52 0.57 (0.52)
COLORADO TAX-FREE FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 9.90 0.45(4) 0.15 (0.21)
July 1, 2008 to June 30, 2009 .................. $10.32 0.45(4) (0.41) (0.45)
July 1, 2007 to June 30, 2008 .................. $10.57 0.44(4) (0.24) (0.44)
July 1, 2006 to June 30, 2007 .................. $10.55 0.45 0.02 (0.45)
July 1, 2005 to June 30, 2006 .................. $10.94 0.46 (0.40) (0.45)
July 1, 2004 to June 30, 2005 .................. $10.64 0.46 0.30 (0.46)
Class B
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 9.92 0.39(4) 0.17 (0.18)
July 1, 2008 to June 30, 2009 .................. $10.33 0.38(4) (0.40) (0.38)
July 1, 2007 to June 30, 2008 .................. $10.58 0.36(4) (0.24) (0.36)
July 1, 2006 to June 30, 2007 .................. $10.57 0.37 0.01 (0.37)
July 1, 2005 to June 30, 2006 .................. $10.95 0.38 (0.39) (0.37)
July 1, 2004 to June 30, 2005 .................. $10.65 0.38 0.30 (0.38)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 9.91 0.38(4) 0.19 (0.18)
July 1, 2008 to June 30, 2009 .................. $10.33 0.37(4) (0.40) (0.38)
April 1, 2008(2) to June 30, 2008 .............. $10.35 0.08(4) (0.01) (0.09)
Administrator Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 9.90 0.48(4) 0.14 (0.23)
July 1, 2008 to June 30, 2009 .................. $10.32 0.48(4) (0.42) (0.47)
July 1, 2007 to June 30, 2008 .................. $10.57 0.47(4) (0.25) (0.46)
July 1, 2006 to June 30, 2007 .................. $10.55 0.48 0.02 (0.48)
July 1, 2005 to June 30, 2006 .................. $10.94 0.49 (0.40) (0.48)
July 1, 2004 to June 30, 2005 .................. $10.64 0.49 0.30 (0.49)
The accompanying notes are an integral part of these financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 49
Financial Highlights
Ratio to Average Net Assets
Ending (Annualized)
Distributions Net Asset ------------------------------------ Portfolio Net Assets at
from Net Value Per Net Investment Gross Net Total Turnover End of Period
Realized Gains Share Income (Loss) Expenses Expenses Return(1) Rate(3) (000's omitted)
- -------------- --------- -------------- -------- -------- --------- --------- ---------------
0.00 $10.62 4.02% 0.79% 0.55% 7.02% 14% $123,123
0.00 $10.16 5.10% 0.81% 0.55% 0.32% 44% $ 74,046
(0.03) $10.66 4.67% 0.84% 0.55% 1.51% 43% $ 77,702
(0.03) $11.04 4.56% 0.85% 0.55% 5.06% 49% $ 50,556
(0.11) $11.03 4.58% 0.86% 0.55% 1.02% 48% $ 46,686
(0.06) $11.54 4.60% 0.75% 0.55% 10.07% 30% $ 41,926
0.00 $10.29 4.02% 0.90% 0.85% 6.13% 10% $ 62,229
(0.01) $ 9.90 4.58% 1.00% 0.88% 0.51% 20% $ 53,883
(0.01) $10.32 4.20% 1.12% 0.89% 1.85% 15% $ 46,174
0.00 $10.57 4.21% 1.15% 0.92% 4.46% 21% $ 49,827
0.00 $10.55 4.28% 1.17% 0.93% 0.60% 23% $ 43,538
0.00 $10.94 4.24% 1.13% 0.91% 7.24% 33% $ 50,410
0.00 $10.30 3.34% 1.67% 1.60% 5.62% 10% $ 484
(0.01) $ 9.92 3.83% 1.74% 1.63% (0.14)% 20% $ 1,072
(0.01) $10.33 3.45% 1.87% 1.64% 1.09% 15% $ 2,870
0.00 $10.58 3.47% 1.90% 1.67% 3.59% 21% $ 6,057
0.00 $10.57 3.53% 1.92% 1.68% (0.05)% 23% $ 7,661
0.00 $10.95 3.49% 1.88% 1.66% 6.43% 33% $ 9,095
0.00 $10.30 3.16% 1.66% 1.60% 5.73% 10% $ 3,005
(0.01) $ 9.91 3.82% 1.73% 1.60% (0.23)% 20% $ 1,053
0.00 $10.33 2.25% 1.74% 1.61% 0.58% 15% $ 401
0.00 $10.29 4.30% 0.84% 0.60% 6.26% 10% $ 47,650
(0.01) $ 9.90 4.84% 0.92% 0.63% 0.76% 20% $ 43,746
(0.01) $10.32 4.44% 0.94% 0.64% 2.10% 15% $ 45,046
0.00 $10.57 4.46% 0.97% 0.67% 4.72% 21% $ 35,446
0.00 $10.55 4.53% 0.98% 0.68% 0.85% 23% $ 32,321
0.00 $10.94 4.49% 0.83% 0.66% 7.50% 33% $ 36,304
50 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income on Investments Income
--------- ---------- -------------- -------------
MINNESOTA TAX-FREE FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) ........ $10.36 0.44(4) 0.09 (0.22)
July 1, 2008 to June 30, 2009 ........................ $10.56 0.44(4) (0.19) (0.44)
July 1, 2007 to June 30, 2008 ........................ $10.70 0.45(4) (0.10) (0.46)
July 1, 2006 to June 30, 2007 ........................ $10.74 0.45 (0.01) (0.45)
July 1, 2005 to June 30, 2006 ........................ $11.15 0.45 (0.37) (0.45)
July 1, 2004 to June 30, 2005 ........................ $10.89 0.45 0.30 (0.44)
Class B
July 1, 2009 to December 31, 2009 (Unaudited) ........ $10.36 0.37(4) 0.12 (0.18)
July 1, 2008 to June 30, 2009 ........................ $10.56 0.37(4) (0.19) (0.37)
July 1, 2007 to June 30, 2008 ........................ $10.69 0.38(4) (0.10) (0.38)
July 1, 2006 to June 30, 2007 ........................ $10.74 0.38 (0.03) (0.37)
July 1, 2005 to June 30, 2006 ........................ $11.15 0.37 (0.37) (0.37)
July 1, 2004 to June 30, 2005 ........................ $10.89 0.38 0.29 (0.36)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) ........ $10.36 0.36(4) 0.13 (0.18)
July 1, 2008 to June 30, 2009 ........................ $10.56 0.36(4) (0.18) (0.37)
July 1, 2007 to June 30, 2008 ........................ $10.69 0.37(4) (0.10) (0.37)
July 1, 2006 to June 30, 2007 ........................ $10.73 0.36 (0.01) (0.36)
July 1, 2005 to June 30, 2006 ........................ $11.15 0.37 (0.38) (0.37)
April 8, 2005(2) to June 30, 2005 .................... $10.97 0.08 0.18 (0.08)
Administrator Class
July 1, 2009 to December 31, 2009 (Unaudited) ........ $10.36 0.47(4) 0.07 (0.23)
July 1, 2008 to June 30, 2009(5) ..................... $10.56 0.47(4) (0.19) (0.47)
July 1, 2007 to June 30, 2008 ........................ $10.69 0.48(4) (0.10) (0.48)
July 1, 2006 to June 30, 2007 ........................ $10.73 0.48 (0.01) (0.48)
July 1, 2005 to June 30, 2006 ........................ $11.14 0.48 (0.37) (0.48)
July 1, 2004 to June 30, 2005 ........................ $10.89 0.48 0.29 (0.47)
The accompanying notes are an integral part of these financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 51
Financial Highlights
Ratio to Average Net Assets
Ending (Annualized)
Distributions Net Asset ---------------------------------- Portfolio Net Assets at
from Net Value Per Net Investment Gross Net Total Turnover End of Period
Realized Gains Share Income (Loss) Expenses Expenses Return(1) Rate(3) (000's omitted)
- -------------- --------- -------------- -------- -------- --------- --------- ---------------
(0.01) $10.66 4.13% 0.90% 0.85% 5.13% 15% $ 53,656
(0.01) $10.36 4.32% 0.94% 0.85% 2.49% 28% $ 48,905
(0.03) $10.56 4.26% 1.06% 0.85% 3.32% 39% $ 43,617
(0.03) $10.70 4.18% 1.07% 0.85% 4.14% 19% $ 37,897
(0.04) $10.74 4.17% 1.08% 0.85% 0.73% 20% $ 38,145
(0.05) $11.15 4.06% 1.06% 0.85% 7.06% 18% $ 37,829
(0.01) $10.66 3.38% 1.66% 1.60% 4.74% 15% $ 1,605
(0.01) $10.36 3.58% 1.69% 1.60% 1.72% 28% $ 2,166
(0.03) $10.56 3.51% 1.82% 1.60% 2.64% 39% $ 4,166
(0.03) $10.69 3.43% 1.82% 1.60% 3.27% 19% $ 6,200
(0.04) $10.74 3.41% 1.83% 1.60% (0.02)% 20% $ 8,787
(0.05) $11.15 3.31% 1.81% 1.60% 6.27% 18% $ 10,987
(0.01) $10.66 3.33% 1.65% 1.60% 4.74% 15% $ 5,350
(0.01) $10.36 3.55% 1.65% 1.59% 1.73% 28% $ 4,163
(0.03) $10.56 3.49% 1.79% 1.60% 2.63% 39% $ 2,103
(0.03) $10.69 3.41% 1.82% 1.60% 3.35% 19% $ 1,245
(0.04) $10.73 3.40% 1.83% 1.60% (0.13)% 20% $ 635
0.00 $11.15 3.36% 1.82% 1.60% 2.38% 18% $ 389
(0.01) $10.66 4.40% 0.82% 0.60% 5.27% 15% $121,630
(0.01) $10.36 4.57% 0.86% 0.60% 2.74% 28% $122,749
(0.03) $10.56 4.49% 0.89% 0.60% 3.67% 39% $111,194
(0.03) $10.69 4.43% 0.89% 0.60% 4.40% 19% $115,134
(0.04) $10.73 4.42% 0.90% 0.60% 0.98% 20% $109,137
(0.05) $11.14 4.31% 0.76% 0.60% 7.23% 18% $128,854
52 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Notes to Financial Statements
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is an open-end investment management
company registered under the Investment Company Act of 1940, as amended (the
"1940 Act"). These financial statements report on the following funds: Wells
Fargo Advantage California Limited-Term Tax-Free Fund ("California Limited-Term
Tax-Free Fund"), Wells Fargo Advantage California Tax-Free Fund ("California
Tax-Free Fund"), Wells Fargo Advantage Colorado Tax-Free Fund ("Colorado
Tax-Free Fund") and Wells Fargo Advantage Minnesota Tax-Free Fund ("Minnesota
Tax-Free Fund") (each, a "Fund", collectively, the "Funds"). Each Fund is a
non-diversified series of the Trust, a Delaware statutory trust organized on
November 8, 1999.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed
in the preparation of the financial statements of each Fund, are in conformity
with U.S. Generally Accepted Accounting Principles ("GAAP") which 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. Management has considered the circumstances under which the Funds
should recognize or make disclosures regarding events or transactions occurring
subsequent to the balance sheet date through February 26, 2010 which represents
the date the financial statements are issued. Adjustments or additional
disclosures, if any, have been included in these financial statements.
SECURITIES VALUATION
Certain fixed income securities with maturities exceeding 60 days are valued by
using a pricing service approved by the Trust's Board of Trustees. This service
uses market prices as quoted by an independent pricing service or by dealers in
these securities when, in the service's judgment, these prices are readily
available and are representative of the securities' fair values. For some
securities, such prices are not readily available. These securities will
generally be fair valued using the methods which may include consideration of
yields or prices of securities of comparable quality, coupon rate, maturity and
type of issue; indications as to values from dealers in securities, trading
characteristics and general market conditions.
Debt securities of sufficient credit quality with original maturities of 60 days
or less, generally are valued at amortized cost which approximates market value.
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 fair value.
Investments in open-end mutual funds are valued at net asset value.
Investments which are not valued using any of the methods discussed above, are
valued at their fair value, as determined by procedures established in good
faith and approved by the Board of Trustees.
The valuation techniques used by the Funds to measure fair value are consistent
with the market approach, income approach and/or cost approach, where
applicable, for each security type.
WHEN-ISSUED TRANSACTIONS
Each Fund may purchase securities on a forward commitment or 'when-issued'
basis. A Fund records a when-issued transaction on the trade date and will
segregate assets to cover its obligation by confirming the availability of
qualifying assets having a value sufficient to make payment for the securities
purchased. Securities purchased on a when-issued basis are marked-to-market
daily and the Fund begins earning interest on the settlement date. Losses may
arise due to changes in the market value of the underlying securities or if the
counterparty does not perform under the contract.
FUTURES CONTRACTS
Certain Funds may be subject to interest rate risk in the normal course of
pursuing its investment objectives. The Funds may buy and sell futures contracts
in order to gain exposure to, or protect against changes in, security values and
interest rates. The primary risks associated with the use of futures contracts
are the imperfect correlation between changes in market values of securities
held by the Fund and the prices of futures contracts, and the possibility of an
illiquid market.
Futures contracts are valued based upon their quoted daily settlement prices.
The aggregate principal amounts of the contracts are not recorded in the
financial statements. Fluctuations in the value of the contracts are recorded in
the Statement of Assets and Liabilities as an asset or liability and in the
Statement of Operations as unrealized gains or losses until the contracts are
closed, at which point they are recorded as net realized gains or losses on
futures contracts. With futures contracts, there is minimal counterparty risk to
the Fund since futures are exchange traded and the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures against
default.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 53
Notes to Financial Statements
MUNICIPAL MARKET DATA RATE LOCKS
The Funds may be subject to interest rate risk in the normal course of pursuing
its investment objectives. A Fund may purchase and sell Municipal Market Data
Rate Locks ("MMD Rate Locks"). A Fund will ordinarily use these transactions as
a hedge or for duration or risk management although it is permitted to enter
into them to enhance income or gain or to increase the Fund's yield, for
example, during periods of steep interest rate yield curves (i.e., wide
differences between short term and long term interest rates). An MMD Rate Lock
permits a Fund to lock in a specified municipal interest rate for a portion of
its portfolio to preserve a return on a particular investment or a portion of
its portfolio as a duration management technique or to protect against any
increase in the price of securities to be purchased at a later date. An MMD Rate
Lock is a contract between a Fund and an MMD Rate Lock provider pursuant to
which the parties agree to make payments to each other on a notional amount,
contingent upon whether the Municipal Market Data AAA General Obligation Scale
is above or below a specified level on the expiration date of the contract. For
example, if a Fund buys an MMD Rate Lock and the Municipal Market Data AAA
General Obligation Scale is below the specified level on the expiration date,
the counterparty to the contract will make a payment to a Fund equal to the
specified level minus the actual level, multiplied by the notional amount of the
contract. If the Municipal Market Data AAA General Obligation Scale is above the
specified level on the expiration date, a Fund will make a payment to the
counterparty equal to the actual level minus the specified level, multiplied by
the notional amount of the contract. In connection with investments in MMD Rate
Locks, there is a risk that municipal yields will move in the opposite direction
than anticipated by a Fund, which would cause the Fund to make payments to its
counterparty in the transaction that could adversely affect the Fund's
performance. The Fund could be exposed to risks if the counterparty defaults on
its obligation to perform, or if there are unfavorable changes in the
fluctuation of interest rates or in the price of the underlying index. The
Fund's maximum risk of loss from counterparty risk is the fair value of the
contract. This risk is mitigated by having a master netting arrangement between
the Fund and the counterparty and by having the counterparty post collateral to
cover the Fund's exposure to the counterparty.
INVERSE FLOATING-RATE OBLIGATIONS
Certain Funds may participate in inverse floating-rate obligation ("Inverse
Floater") structures whereby a fixed-rate bond ("Fixed-Rate Bond") purchased by
the Fund is transferred to a tender option bond trust ("TOB Trust"). The TOB
Trust issues floating-rate notes ("Floating-Rate Notes") to third-parties, which
are collateralized by the Fixed-Rate Bond, and the Fund buys a residual interest
in the TOB Trust's assets and cash flows. The Inverse Floater held by the Fund
gives the Fund the right (1) to cause the holders of the Floating-Rate Notes to
tender their notes at par, and (2) to have the Fixed-Rate Bond held by the TOB
Trust transferred to the Fund, thereby collapsing the TOB Trust. The Fund
accounts for the transaction described above as a secured borrowing by including
the Fixed-Rate Bond in its Schedule of Investments, and accounts for the
Floating-Rate Notes as a liability in the Fund's Statement of Assets and
Liabilities. The Floating-Rate Notes have interest rates that generally reset
weekly and their holders have the option to tender their notes for redemption at
par at each reset date. Inverse Floaters held by the Fund are securities exempt
from registration under Rule 144A of the Securities Act of 1933, as amended.
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 based on the effective interest method. To the extent debt
obligations are placed on non-accrual status, any related interest income may be
reduced by writing off interest receivables when the collection of all or a
portion of interest has become doubtful based on consistently applied
procedures. If the issuer subsequently resumes interest payments or when the
collectability of interest is reasonably assured, the debt obligation is removed
from non-accrual status.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
monthly. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
FEDERAL AND OTHER 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 distributing substantially all of its investment company
taxable and tax-exempt 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.
54 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Notes to Financial Statements
Each Fund's income and federal excise tax returns and all financial records
supporting those returns for the prior three fiscal years are subject to
examination by the federal and Delaware revenue authorities.
At June 30, 2009, estimated net capital loss carryforwards, which are available
to offset future net realized capital gains, were as follows:
Expiration
------------------------------
2015 2016 2017
-------- -------- ----------
CALIFORNIA LIMITED-TERM TAX-FREE FUND $251,711 $ 11,320 $ 0
CALIFORNIA TAX-FREE FUND 0 818,994 1,675,607
COLORADO TAX-FREE FUND 0 0 95,092
At June 30, 2009, current year deferred post-October losses, which will be
treated as realized for tax purposes on the first day of the succeeding year,
were:
Deferred
Post-October
Capital Loss
------------
CALIFORNIA TAX-FREE FUND $5,092,527
COLORADO TAX-FREE FUND 606,891
CLASS ALLOCATIONS
The separate classes of shares offered by each Fund differ principally in
applicable sales charges, 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.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that
has established a fair value hierarchy based upon the various data inputs
utilized in determining the value of the Fund's investments. These inputs are
summarized into three broad levels as follows:
- - Level 1 - quoted prices in active markets for identical investments
- - Level 2 - other significant observable inputs (including quoted prices for
similar investments, interest rates, prepayment speeds, credit risk, etc.)
- - Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in these securities.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 55
Notes to Financial Statements
The following is a summary of the inputs used as of December 31, 2009 in valuing
the Funds' investments in securities:
Significant
Other Significant
Quoted Observable Unobservable
INVESTMENTS IN Prices Inputs Inputs
SECURITIES (Level 1) (Level 2) (Level 3) Total
- -------------- ----------- ------------ ------------ ------------
CALIFORNIA LIMITED-TERM TAX-FREE FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $214,739,992 $ 190,000 $214,929,992
Short-term investments 17,222,905 0 0 17,222,905
$17,222,905 $214,739,992 $ 190,000 $232,152,897
CALIFORNIA TAX-FREE FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $513,718,803 $1,852,500 $515,571,303
Short-term investments 12,718,647 0 0 12,718,647
$12,718,647 $513,718,803 $1,852,500 $528,289,950
COLORADO TAX-FREE FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $101,321,600 $ 0 $101,321,600
Short-term investments 12,526,106 0 0 12,526,106
$12,526,106 $100,236,600 $ 0 $113,847,706
MINNESOTA TAX-FREE FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $175,539,509 $1,312,500 $176,852,009
Short-term investments 3,568,301 0 0 3,568,301
$ 3,568,301 $175,539,509 $1,312,500 $180,420,310
Further details on the major security types listed above for each Fund can be
found in the Portfolio of Investments.
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining value:
California California Colorado
Limited-Term Tax-Free Tax-Free
Tax-Free Fund Fund Fund
------------- ---------- ----------
DEBT SECURITIES ISSUED BY STATES IN THE U.S.
AND ITS POLITICAL SUBDIVISIONS BALANCE AS OF 06/30/2009 $ 0 $ 0 $ 0
Accrued discounts (premiums) 0 0 2,910
Realized gain (loss) 0 0 6,150
Change in unrealized appreciation (depreciation) 0 0 (2,810)
Net purchases (sales) 0 0 1,306,250
Net transfer in (out) of Level 3 190,000 1,852,500 0
BALANCE AS OF 12/31/2009 $190,000 $1,852,500 $1,312,500
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) RELATING TO
SECURITIES HELD AT THE END OF REPORTING PERIOD $ 0 $ 0 $ (2,810)
4. TRANSACTIONS WITH AFFILIATES AND OTHER 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
sub-adviser, who is responsible for day-to-day portfolio management.
56 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Notes to Financial Statements
Pursuant to the contract, Funds Management is entitled to receive an advisory
fee from each Fund for its services as adviser at the following annual rates:
Advisory
Fees (% of
Average Daily Average Daily
Net Assets Net Assets)
- ------------------ -------------
First $500 million 0.350
Next $500 million 0.325
Next $2 billion 0.300
Next $2 billion 0.275
Over $5 billion 0.250
Funds Management may retain the services of certain investment sub-advisers to
provide daily portfolio management. The fees related to sub-advisory services
are borne directly by the adviser and do not increase the overall fees paid by a
Fund to the adviser.
Wells Capital Management Incorporated, an affiliate of Funds Management and
indirect wholly owned subsidiary of Wells Fargo & Company, is the sub-adviser to
the Funds.
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds Management.
Under this Agreement, for providing administrative services, which includes
paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive from each Fund 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 All asset levels 0.18
Administrator Class All asset levels 0.10
Funds Management has contractually waived advisory and administration fees
during the year ended December 31, 2009 to the extent necessary to maintain
certain net operating expense ratios for the Funds. Expenses were waived by
Funds Management proportionately from all classes, first from advisory fees, and
then from any class specific expenses, if applicable.
CUSTODY AND FUND ACCOUNTING FEES
The Funds have entered into a contract with State Street Bank and Trust Company
("State Street"), whereby State Street is responsible for providing custody
services and fund accounting services to the Funds (the "Custody and Fund
Accounting Agreement.") Pursuant to the Custody and Fund Accounting Agreement,
State Street is entitled to an annual asset-based fee for domestic and global
custody services for the Funds. Also pursuant to the Custody and Fund Accounting
Agreement, State Street is entitled to receive annual asset-based fees for
providing fund accounting services to the Funds.
Prior to August 17, 2009, Wells Fargo Bank, N. A. was responsible for providing
custody services to the Funds and was entitled to a monthly fee for custody
services at an annual rate of 0.02% of the average daily net assets of each
Fund. PNC Global Investment Servicing ("PNC") served as fund accountant for the
Trust prior to August 17, 2009 and received an annual asset-based fee and an
annual fixed fee from each Fund. PNC was also reimbursed for all out-of-pocket
expenses reasonably incurred in providing these services.
DISTRIBUTION FEES
The Trust has adopted a Distribution 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, the principal underwriter of each Fund, at an annual rate of
0.75% of the average daily net assets of each class.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 57
Notes to Financial Statements
For the six months ended December 31, 2009, Wells Fargo Funds Distributor, LLC
received the following amounts in front-end sales charges and contingent
deferred sales charges.
Contingent
deferred
Front-end sales charges
sales charges -----------------
Class A Class B Class C
------------- ------- -------
CALIFORNIA LIMITED-TERM TAX-FREE FUND $29,921,302 NA $3,224
CALIFORNIA TAX-FREE FUND 18,383,718 $2,068 923
COLORADO TAX-FREE FUND 5,455,665 48 0
MINNESOTA TAX-FREE FUND 1,974,550 9 0
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class B, Class C and Administrator Class of each
applicable Fund is charged a fee at an annual rate of 0.25% of the average daily
net assets of each respective class.
A portion of these total shareholder servicing fees were paid to affiliates of
Wells Fargo & Company.
5. 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 months ended December 31, 2009, were as
follows:
FUND PURCHASES AT COST SALES PROCEEDS
- ---- ----------------- --------------
CALIFORNIA LIMITED-TERM TAX-FREE FUND $130,963,681 $19,142,521
CALIFORNIA TAX-FREE FUND 98,521,385 65,110,274
COLORADO TAX-FREE FUND 14,622,233 9,567,521
MINNESOTA TAX-FREE FUND 26,190,789 26,683,753
During the six months ended December 31, 2009, the Colorado Tax-Free Fund held
Floating-Rate Notes that had an average daily balance outstanding of $1,115,000
(on an annualized basis) and incurred interest and fee expense in the amount of
$2,330.
At December 31, 2009, the Colorado Tax-Free Fund had the following Floating-Rate
Notes outstanding:
Collateral for
Floating-Rate Notes Range of Floating-Rate
Outstanding Interest Rates Notes Outstanding
------------------- -------------- -----------------
COLORADO TAX-FREE FUND $1,085,000 0.35%-0.46% $2,299,354
6. BANK BORROWINGS
The Trust and Wells Fargo Variable Trust (excluding the money market funds) are
parties to a $125,000,000 revolving credit agreement with State Street Bank and
Trust Company, whereby the Funds are permitted to use bank borrowings for
temporary or emergency purposes, such as to fund shareholder redemption
requests. Pursuant to the agreement entered into on September 8, 2009, interest
under the credit agreement is charged to each Fund based on a borrowing rate
equal to the higher of the Federal Funds rate in effect on that day plus 1.25%
or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, under
the credit agreement, the Funds pay an annual commitment fee equal to 0.15% of
the unused balance, which is allocated pro rata. Prior to September 8, 2009, the
Funds participated in a $150,000,000 revolving credit agreement with the Bank of
New York Mellon and paid interest at a rate equal to the Federal Funds rate plus
0.60% and an annual commitment fee equal to 0.15% of the unused balance, which
was allocated on a pro rata basis.
For the six months ended December 31, 2009, there were no borrowings by the
Funds under the agreement.
58 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Notes to Financial Statements
7. CONCENTRATION OF RISK
Each Fund invests a substantial portion of its assets in issuers of municipal
debt securities located in a single state, therefore, it may be more affected by
economic and political developments in that state or region than would be a
comparable general tax-exempt mutual fund.
8. INDEMNIFICATION
Under the Trust's organizational documents, the 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.
9. SUBSEQUENT EVENT
In January 2010, the Financial Accounting Standards Board ("FASB") issued an
Accounting Standards Update on "IMPROVING DISCLOSURES ABOUT FAIR VALUE
MEASUREMENTS" which will require reporting entities to make new disclosures
about the amount and reasons for significant transfers into and out of Level 1
and Level 2 fair value measurements, the input and valuation techniques used to
measure fair value for both recurring and nonrecurring fair value measurements
and information on purchases, sales, issuances, and settlements on a gross basis
in the reconciliation of Level 3 fair value measurements. Except for the
detailed Level 3 roll forward disclosures, the disclosures are effective for
annual and interim reporting periods beginning after December 15, 2009. The new
disclosures about purchases, sales, issuances, and settlements in the roll
forward activity for Level 3 fair value measurements are effective for interim
and annual reporting periods beginning after December 15, 2010. Management of
the Fund is currently evaluating the implications of this Accounting Standards
Update and any impacts on the financial statements.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 59
Other Information
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, by calling 1-800-222-8222, visiting our Web site at
www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge on the Funds' Web site at www.wellsfargo.com/advantagefunds or by
visiting the SEC Web site at www.sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund, 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 Fund is publicly available on the Funds'Web site on a monthly, seven-day or
more delayed basis. Each Fund files its complete schedule of portfolio holdings
with the SEC for the first and third quarters of each fiscal year on Form N-Q,
which is available without charge by visiting the SEC Web site at WWW.SEC.GOV.
In addition, each Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees (the
"Trustees") of the Wells Fargo Funds Trust (the "Trust") and Officers of the
Trust. This table should be read in conjunction with the Prospectus and the
Statement of Additional Information1 of each Fund. Each of the Trustees and
Officers listed below acts in identical capacities for each of the 133 funds
comprising the Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust
(collectively the "Fund Complex"), except that the person occupying the office
of Treasurer varies for specified Funds. All of the Trustees are also Members of
the Audit and Governance Committees of each Trust in the Fund Complex. The
mailing address of each Trustee and Officer is 525 Market Street, 12th Floor,
San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term,
however, each Trustee serves such term until reaching the mandatory retirement
age established by the Trustees.
INDEPENDENT TRUSTEES
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- ------------ ------------------------- ---------------------------------------------------------- -------------------
Peter G. Gordon Trustee, since 1998; Co-Founder, Chairman, President and CEO of Crystal Geyser. None
67 Chairman, since 2005 Water Company.
(Lead Trustee since 2001)
Isaiah Harris, Jr. Advisory Board Retired. Prior thereto, President and CEO of BellSouth CIGNA Corporation;
57 Trustee, since 2008 Advertising and Publishing Corp from 2005 to 2007, Deluxe Corporation
President and CEO of BellSouth Enterprises from 2004 to
2005 and President of BellSouth Consumer Services from
2000 to 2003. Currently a member of the Iowa State
University Foundation Board of Governors and a member of
the Advisory Board of Iowa State University School of
Business.
Judith M. Johnson Trustee, since 2008 Retired. Prior thereto, Chief Executive Officer and None
60 Chief Investment Officer of Minneapolis Employees
Retirement Fund from 1996 to 2008. Ms. Johnson is a
certified public accountant and a certified managerial
accountant.
David F. Larcker Advisory Board James Irvin Miller Professor of Accounting at the None
59 Trustee, since 2008 Graduate School of Business, Stanford University,
Director of Corporate Governance Research Program and
Co-Director of The Rock Center for Corporate Governance
since 2006. From 2005 to 2008, Professor of Accounting
at the Graduate School of Business, Stanford University.
Prior thereto, Ernst & Young Professor of Accounting at
The Wharton School, University of Pennsylvania from 1985
to 2005.
60 WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
Other Information
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- ------------ ------------------------- --------------------------------------------------------- -------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, Wharton None
56 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
58 Foundation, a non-profit organization, since 2007 and
Senior Fellow at the Humphrey Institute Policy Forum at
the University of Minnesota since 1995. Member of the
Board of Trustees of NorthStar Education Finance, Inc.,
a non-profit organization, since 2007.
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke & Daniels. General None
69 Counsel of the Minneapolis Employees Retirement Fund
from 1984 to present.
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
50 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
49 Chief Legal Counsel, Management, LLC since 2001. Vice President and Managing
since 2003 Senior Counsel of Wells Fargo Bank, N.A. since 1996.
Kasey Phillips(3) Treasurer, since 2009 Senior Vice President of Evergreen Investment Management None
38 Company, LLC since 2006 and currently the Treasurer of
the Evergreen Funds since 2005. Vice President and
Assistant Vice President of Evergreen Investment
Services, Inc. from 1999 to 2006.
David Berardi(4) Assistant Treasurer, Vice President of Evergreen Investment Management None
34 since 2009 Company, LLC since 2008. Assistant Vice President of
Evergreen Investment Services, Inc. from 2004 to 2008.
Manager of Fund Reporting and Control for Evergreen
Investment Management Company, LLC since 2004.
Jeremy DePalma(4) Assistant Treasurer, Senior Vice President of Evergreen Investment Management None
35 since 2009 Company, LLC since 2008. Vice President, Evergreen
Investment Services, Inc. from 2004 to 2007. Assistant
Vice President, Evergreen Investment Services, Inc. from
2000 to 2004 and the head of the Fund Reporting and
Control Team within Fund Administration since 2005.
Debra Ann Early Chief Compliance Officer, Chief Compliance Officer of Wells Fargo Funds Management, None
45 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.) Effective November 1, 2009.
(4.) Treasurer during the period from June 1, 2009 to October 31, 2009.
Assistant Treasurer effective November 1, 2009.
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS 61
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
CIFG -- CDC (Caisse des Depots et Consignations) IXIS Financial
Guarantee
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
ETF -- Exchange-Traded Fund
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
FSA -- Farm Service Agency
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
HUD -- Housing & Urban Development
IDA -- Industrial Development Authority
IDAG -- Industrial Development Agency
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Company
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MFMR -- Multi-Family Mortgage Revenue
MMD -- Municipal Market Data
MTN -- Medium Term Note
MUD -- Municipal Utility District
NATL-RE -- National Public Finance Guarantee Corporation
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
SPDR -- Standard & Poor's Depositary Receipts
STIT -- Short-Term Investment Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
XLCA -- XL Capital Assurance
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WELLS FARGO 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.
"Dow Jones" and "Dow Jones Target Date Indexes" are service marks of Dow Jones &
Company, Inc., and have been licensed for use for certain purposes by Global
Index Advisors, Inc., and Wells Fargo Funds Management, LLC. The Dow Jones
Target Date Indexes are based in part on the Barclays Capital Bond Indexes,
which are published by Barclays Capital Inc. The Wells Fargo Advantage Dow Jones
Target Date Funds, based on the Dow Jones Target Date Indexes, are not
sponsored, endorsed, sold or promoted by Dow Jones or Barclays Capital, and
neither Dow Jones nor Barclays Capital makes any representation regarding the
advisability of investing in such product(s) and/or about the quality, accuracy
and/or completeness of the Dow Jones Target Date Indexes or the Barclays Capital
Bond Indexes. IN NO EVENT SHALL DOW JONES, BARCLAYS CAPITAL OR ANY OF THEIR
LICENSORS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT OR
CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES.
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 FINRA/SIPC, an affiliate of Wells Fargo &
Company.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(GRAPHIC)
Printed on Recycled paper
(C) 2010 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
120045 02-10
SMILD/SAR105 12-09
(WELLS FARGO ADVANTAGE FUNDS LOGO)
(GRAPHIC)
REDUCE CLUTTER. SAVE TREES.
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(GRAPHIC)
Semi-Annual Report
December 31, 2009
WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS
- - WELLS FARGO ADVANTAGE INTERMEDIATE TAX/AMT-FREE FUND
- - WELLS FARGO ADVANTAGE MUNICIPAL BOND FUND
- - WELLS FARGO ADVANTAGE SHORT-TERM MUNICIPAL BOND FUND
- - WELLS FARGO ADVANTAGE ULTRA SHORT-TERM MUNICIPAL INCOME FUND
- - WELLS FARGO ADVANTAGE WISCONSIN TAX-FREE FUND
REDUCE CLUTTER. SAVE TREES.
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www.wellsfargo.com/advantagedelivery
Contents
LETTER TO SHAREHOLDERS.................................................... 2
PERFORMANCE HIGHLIGHTS
Intermediate Tax/AMT-Free Fund............................................ 6
Municipal Bond Fund....................................................... 8
Short-Term Municipal Bond Fund............................................ 10
Ultra Short-Term Municipal Income Fund.................................... 12
Wisconsin Tax-Free Fund................................................... 14
FUND EXPENSES............................................................. 16
PORTFOLIO OF INVESTMENTS
Intermediate Tax/AMT-Free Fund............................................ 19
Municipal Bond Fund....................................................... 32
Short-Term Municipal Bond Fund............................................ 46
Ultra Short-Term Municipal Income Fund.................................... 67
Wisconsin Tax-Free Fund................................................... 95
FINANCIAL STATEMENTS
Statements of Assets and Liabilities...................................... 102
Statements of Operations.................................................. 104
Statements of Changes in Net Assets....................................... 106
Financial Highlights...................................................... 112
NOTES TO FINANCIAL STATEMENTS............................................. 118
OTHER INFORMATION......................................................... 126
LIST OF ABBREVIATIONS..................................................... 128
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 ADDET 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 110 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)
WELLS FARGO ADVANTAGE FUNDS SKILLFULLY GUIDES INSTITUTIONS, FINANCIAL ADVISORS,
AND INDIVIDUALS THROUGH THE INVESTMENT TERRAIN TO HELP THEM REACH THEIR
FINANCIAL OBJECTIVES. EVERYTHING WE DO ON BEHALF OF OUR INVESTORS IS BACKED BY
OUR UNIQUE COMBINATION OF QUALIFICATIONS.
STRENGTH
Our organization is built on the standards of integrity and service established
by our parent company--Wells Fargo & Company--more than 150 years ago. Our
diverse family of mutual funds covers a broad spectrum of investment styles and
asset classes. And, because we're part of a widely diversified financial
enterprise, we offer the scale and resources to help investors succeed,
providing access to complementary solutions such as separately managed accounts,
college investing plans, and retirement plans.
EXPERTISE
Our approach to investing is guided by the belief that agile, independent
investment teams--each with its own distinct strengths and disciplines--provide
a superior level of insight and expertise. Each team is free to concentrate on
managing money through well-defined philosophies and processes that have proven
to be consistent and repeatable over time.
PARTNERSHIP
Our collaborative approach is built around understanding the needs and goals of
our clients. By adhering to core principles of sound judgment and steady
guidance, we support you through every stage of the investment decision process.
FOR 529 PLANS, AN INVESTOR'S OR A DESIGNATED BENEFICIARY'S HOME STATE MAY OFFER
STATE TAX OR OTHER BENEFITS THAT ARE ONLY AVAILABLE FOR INVESTMENTS IN THAT
STATE'S QUALIFIED TUITION PROGRAM. PLEASE CONSIDER THIS BEFORE INVESTING.
CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES
BEFORE INVESTING. FOR A CURRENT PROSPECTUS FOR WELLS FARGO ADVANTAGE FUNDS OR A
CURRENT PROGRAM DESCRIPTION FOR CERTAIN 529 COLLEGE SAVINGS PLANS, CONTAINING
THIS AND OTHER INFORMATION, VISIT WWW.WELLSFARGO.COM/ADVANTAGEFUNDS. READ IT
CAREFULLY BEFORE INVESTING.
WELLS FARGO FUNDS MANAGEMENT, LLC, A WHOLLY OWNED SUBSIDIARY OF WELLS FARGO &
COMPANY, PROVIDES INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES FOR WELLS
FARGO MANAGED ACCOUNT SERVICES AND WELLS FARGO ADVANTAGE FUNDS(R) AND TO CERTAIN
529 COLLEGE SAVINGS PLANS. OTHER AFFILIATES OF WELLS FARGO & COMPANY PROVIDE
SUBADVISORY AND OTHER SERVICES FOR THE FUNDS. THE FUNDS AND SHARES IN THE 529
PLANS ARE DISTRIBUTED BY WELLS FARGO FUNDS DISTRIBUTOR, LLC, MEMBER FINRA/SIPC,
AN AFFILIATE OF WELLS FARGO & COMPANY.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
NOT PART OF THE SEMI-ANNUAL REPORT.
WELLS FARGO ADVANTAGE FUNDS OFFERS MORE THAN 110 MUTUAL FUNDS ACROSS A WIDE
RANGE OF ASSET CLASSES, REPRESENTING OVER $170 BILLION IN ASSETS UNDER
MANAGEMENT, AS OF DECEMBER 31, 2009.
EQUITY FUNDS
Asia Pacific Fund
C&B Large Cap Value Fund
C&B Mid Cap Value Fund
Capital Growth Fund
Common Stock Fund Discovery Fund+
Diversified Equity Fund
Diversified Small Cap Fund
Emerging Growth Fund
Emerging Markets Equity Fund
Endeavor Select Fund+
Enterprise Fund+
Equity Income Fund
Equity Value Fund
Growth Fund
Growth Equity Fund
Index Fund
International Core Fund
International Equity Fund
International Value Fund
Large Cap Appreciation Fund
Large Cap Growth Fund
Large Company Core Fund
Large Company Growth Fund
Large Company Value Fund
Mid Cap Disciplined Fund
Mid Cap Growth Fund
Opportunity Fund+
Small Cap Disciplined Fund
Small Cap Growth Fund
Small Cap Opportunities Fund
Small Cap Value Fund
Small Company Growth Fund
Small Company Value Fund
Small/Mid Cap Value Fund
Social Sustainability Fund+
Specialized Financial Services Fund
Specialized Technology Fund
U.S. Value Fund
BOND FUNDS
California Limited-Term Tax-Free Fund
California Tax-Free Fund
Colorado Tax-Free Fund
Diversified Bond Fund
Government Securities Fund(1)
High Income Fund
Income Plus Fund
Inflation-Protected Bond Fund
Intermediate Tax/AMT-Free Fund
Minnesota Tax-Free Fund
Municipal Bond Fund
Short Duration Government Bond Fund(1)
Short-Term Bond Fund
Short-Term High Yield Bond Fund
Short-Term Municipal Bond Fund
Stable Income Fund
Strategic Income Fund
Total Return Bond Fund
Ultra Short-Term Income Fund
Ultra Short-Term Municipal Income Fund
Wisconsin Tax-Free Fund
ASSET ALLOCATION FUNDS
Aggressive Allocation Fund
Asset Allocation Fund
Conservative Allocation Fund
Growth Balanced Fund
Moderate Balanced Fund
WealthBuilder Conservative Allocation Portfolio+
WealthBuilder Equity Portfolio+
WealthBuilder Growth Allocation Portfolio+
WealthBuilder Growth Balanced Portfolio+
WealthBuilder Moderate Balanced Portfolio+
WealthBuilder Tactical Equity Portfolio+
Target Today Fund(2)+
Target 2010 Fund(2)+
Target 2015 Fund(2)+
Target 2020 Fund(2)+
Target 2025 Fund(2)+
Target 2030 Fund(2)+
Target 2035 Fund(2)+
Target 2040 Fund(2)+
Target 2045 Fund(2)+
Target 2050 Fund(2)+
MONEY MARKET FUNDS
100% Treasury Money Market Fund(1)
California Municipal Market Fund
California Municipal Market Trust
Cash Investment Money Market Fund
Government Money Market Fund(1)
Heritage Money Market Fund+
Minnesota Money Market Fund
Money Market Fund
Money Market Trust
Municipal Money Market Fund
National Tax-Free Money Market Fund
National Tax-Free Money Market Trust
Overland Express Sweep Fund+
Prime Investment Money Market Fund
Treasury Plus Money Market Fund(1)
VARIABLE TRUST FUNDS(3)
VT Asset Allocation Fund
VT C&B Large Cap Value Fund
VT C&B Large Cap Value Fund
VT Discovery Fund+
VT Equity Income Fund
VT International Core Fund
VT Large Company Core Fund
VT Large Company Growth Fund
VT Money Market Fund
VT Opportunity Fund+
VT Small Cap Growth Fund
VT Small/Mid Cap Value 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.
+ IN THIS REPORT, THE WELLS FARGO ADVANTAGE DISCOVERY FUNDSM, WELLS FARGO
ADVANTAGE ENDEAVOR SELECT FUNDSM, WELLS FARGO ADVANTAGE ENTERPRISE
FUND(SM), WELLS FARGO ADVANTAGE OPPORTUNITY FUND(SM), WELLS FARGO ADVANTAGE
SOCIAL SUSTAINABILITY FUND(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER
CONSERVATIVE ALLOCATION PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER
EQUITY PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER GROWTH ALLOCATION
PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER GROWTH BALANCED
PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER MODERATE BALANCED
PORTFOLIO(SM), WELLS FARGO ADVANTAGE WEALTHBUILDER TACTICAL EQUITY
PORTFOLIO(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET TODAY FUND(SM), WELLS
FARGO ADVANTAGE DOW JONES TARGET 2010 FUND(SM), WELLS FARGO ADVANTAGE DOW
JONES TARGET 2015 FUND(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET 2020
FUND(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET 2025 FUND(SM), WELLS FARGO
ADVANTAGE DOW JONES TARGET 2030 FUND(SM), WELLS FARGO ADVANTAGE DOW JONES
TARGET 2035 FUND(SM), WELLS FARGO ADVANTAGE DOW JONES TARGET 2040 FUND(SM),
WELLS FARGO ADVANTAGE DOW JONES TARGET 2045 FUND(SM), WELLS FARGO ADVANTAGE
DOW JONES TARGET 2050 FUND(SM), WELLS FARGO ADVANTAGE HERITAGE MONEY MARKET
FUND(SM), WELLS FARGO ADVANTAGE OVERLAND EXPRESS SWEEP FUND(SM), WELLS
FARGO ADVANTAGE VT DISCOVERY FUND(SM), AND WELLS FARGO ADVANTAGE VT
OPPORTUNITY FUND(SM) ARE REFERRED TO AS THE DISCOVERY FUND, ENDEAVOR SELECT
FUND, ENTERPRISE FUND, OPPORTUNITY FUND, SOCIAL SUSTAINABILITY FUND,
WEALTHBUILDER CONSERVATIVE ALLOCATION PORTFOLIO, WEALTHBUILDER EQUITY
PORTFOLIO, WEALTHBUILDER GROWTH ALLOCATION PORTFOLIO, WEALTHBUILDER GROWTH
BALANCED PORTFOLIO, WEALTHBUILDER MODERATE BALANCED PORTFOLIO,
WEALTHBUILDER TACTICAL EQUITY PORTFOLIO, TARGET TODAY FUND, TARGET 2010
FUND, TARGET 2015 FUND, TARGET 2020 FUND, TARGET 2025 FUND, TARGET 2030
FUND, TARGET 2035 FUND, TARGET 2040 FUND, TARGET 2045 FUND, TARGET 2050
FUND, HERITAGE MONEY MARKET FUND, OVERLAND EXPRESS SWEEP FUND, VT DISCOVERY
FUND, AND VT OPPORTUNITY FUND, RESPECTIVELY.
NOT PART OF THE SEMI-ANNUAL REPORT.
2 Wells Fargo Advantage Municipal Income Funds
Letter to Shareholders
(PHOTO OF KARLA M. RABUSCH)
KARLA M. RABUSCH,
President
WELLS FARGO ADVANTAGE FUNDS
IN GENERAL, MUNICIPAL SECURITIES PERFORMED WELL OVER THE RECENT SIX-MONTH
PERIOD, BENEFITING FROM BOTH THE LOW YIELDS IN U.S. TREASURIES AND THE BUILD
AMERICA BOND PROGRAM, WHICH REDUCED THE SUPPLY OF TAX-EXEMPT MUNICIPAL DEBT.
INVESTORS SOUGHT TAX-EXEMPT MUNICIPAL BONDS FOR THEIR HIGHER LEVELS OF RELATIVE
YIELD COMPARED WITH U.S. TREASURIES AND THEIR TAX-EXEMPTION BENEFITS.
Dear Valued Shareholder,
We are pleased to offer you this semi-annual report for the Wells Fargo
Advantage Municipal Funds that covers the six-month period that ended December
31, 2009. During the recent six-month period, fixed-income markets continued to
show strong signs of improvement, resulting in positive returns in nearly every
sector of the fixed-income markets. In general, municipal securities performed
well over the recent six-month period, benefiting from both the low yields in
U.S. Treasuries and the Build America Bond program, which reduced the supply of
tax-exempt municipal debt. Investors sought tax-exempt municipal bonds for their
higher levels of relative yield compared with U.S. Treasuries and their
tax-exemption benefits.
The most notable returns among fixed-income asset classes during the recent
six-month period came from the lower-quality credit sectors, as investor
confidence strengthened throughout 2009. The riskier areas of the fixed-income
markets provided some of the best returns during the period. In municipal bonds,
the BBB-rated1 sub-index of the Barclays Capital Municipal Bond Index returned
9% during the six-month period, while the AAA-rated1 sub-index returned the
least of the investment-grade municipal credit tiers, with a 4% return. Each
respectively lower-quality credit tier performed better than the one above it.
The Barclays Capital U.S. Treasury Index returned less than 1% during the
period.
Markets ended the period with a considerable improvement in investor confidence
and in the overall health of the credit system--compared with the cautious and
somewhat hesitant optimism from earlier in 2009. Fixed-income investors were
generally rewarded well for their risk appetites over the six-month period. As
the period came to a close, investors appeared less concerned with the risks of
a deepening recession and more focused on the potential for increasing interest
rates in the upcoming year.
MUNICIPAL BOND MARKETS OUTPERFORMED U.S. TREASURIES IN THE RECENT SIX-MONTH
PERIOD.
In the early months of 2009, investors were still wary of market risks,
deepening economic declines, and whether government interventions would be
effective in bolstering the financial system. Whether economic conditions would
improve in the near term was not as important to the markets as the basic
understanding that they would likely not get any worse. Once that confidence was
established, financial markets improved considerably, particularly in the
lower-quality areas of the fixed-income markets. Several securities that had
been priced for the worst-case scenarios became attractively undervalued in the
assessment of many investors, and those trends continued through much of the
recent six-month period.
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Ratings from A to CCC may be modified by the
addition of a plus (+) or minus (-) sign to show relative standing within
the rating categories. Moody's rates the creditworthiness of bonds, ranging
from Aaa (highest) to CC (lowest). Ratings Aa to B may be modified by the
addition of a number 1 (highest) to 3 (lowest) to show relative standing
within the ratings categories. Fitch rates the creditworthiness of bonds,
ranging from AAA (highest) to D (lowest).
Wells Fargo Advantage Municipal Income Funds 3
Letter to Shareholders
The six-month period that ended December 31, 2009, was one of continued
strengthening in the credit markets that began in the spring of 2009. Even
though a broad and convincing rally had already occurred in the first half of
2009, the second half was equally as impressive in many areas, including across
municipal bonds. The Barclays Capital Municipal Bond Index returned 6.10% over
the recent six-month period, which was almost equal to the 6.43% it returned in
the first half of 2009. By comparison, U.S. Treasuries returned less than 1%
over the recent six-month period and lost more than 3% over the entire year of
2009. Thus, returns in the municipal bond markets were fairly generous over the
recent six-month period when compared with U.S. Treasuries, and also in
consideration of the low overnight interest-rate environment with a federal
funds rate less than 0.25%.
INVESTOR SENTIMENTS ARE MUCH IMPROVED FROM A YEAR AGO.
Investor confidence in the municipal bond markets appeared to strengthen during
the six-month period, particularly through the first three months of the period,
before slowing down a bit in October. Nonetheless, the month of September 2009
looked quite different from September 2008, when the recent credit crisis
erupted. Performance in the municipal bond markets over the six-month period was
a strong indication of just how far markets have recovered from the 2008 credit
crisis. Much of the strong returns from municipal bonds have been at least
partially inspired by extensive government intervention to bolster the credit
system in the form of stimulus programs and monetary-easing measures. This
cannot be expected to go on indefinitely. The next question in most investors'
minds is what the economic landscape will look like when these government
programs begin to unwind. That is a primary topic of speculation as we move into
a cooler season and a potentially frostier climate of slowly unwinding monetary
and fiscal accommodation.
This does not necessarily mean that municipal bonds will be unable to generate
attractive levels of return in a rising-interest-rate environment. Areas of the
fixed-income markets may have to throttle down a bit in the upcoming quarters
but, in our view, not completely capitulate to a rising-rate environment. In our
opinion, diligent and earnest assessment of the fundamental risks in individual
municipal securities will be a key differentiating factor between which
investment strategies perform well and which do not. At WELLS FARGO ADVANTAGE
FUNDS(R), we intend to continue measuring relative-value opportunities
throughout the municipal bond markets and across our lineup of Wells Fargo
Municipal Funds. We believe it is particularly important to have diligent
investment analysts in charge of fund assets in changing markets, such as the
ones investors have experienced over the past several quarters. As evidenced by
the performance of municipal securities during the recent six-month period,
heightened risks also often accompany opportunities.
DON'T LET SHORT-TERM VOLATILITY DERAIL LONG-TERM INVESTMENT GOALS.
The recent six-month period demonstrated improving confidence in municipal
securities but also extended a somewhat more volatile period than typical for
the fixed-income markets. While volatility can present challenges, experience
has
IN OUR OPINION, DILIGENT AND EARNEST ASSESSMENT OF THE FUNDAMENTAL RISKS IN
INDIVIDUAL MUNICIPAL SECURITIES WILL BE A KEY DIFFERENTIATING FACTOR BETWEEN
WHICH INVESTMENT STRATEGIES PERFORM WELL AND WHICH DO NOT.
4 Wells Fargo Advantage Municipal Income Funds
Letter to Shareholders
taught us that maintaining a long-term investment strategy based on individual
goals and risk tolerance can be an effective way to plan for the future. As a
whole, WELLS FARGO ADVANTAGE FUNDS represents investments across a broad range
of asset classes and investment styles, giving you an opportunity to create a
diversified investment portfolio. 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 110 Funds that cover a broad spectrum of investment styles and asset
classes.
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
THIS PAGE IS INTENTIONALLY LEFT BLANK.
6 Wells Fargo Advantage Municipal Income Funds
Performance Highlights
WELLS FARGO ADVANTAGE INTERMEDIATE TAX/AMT-FREE FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE INTERMEDIATE TAX/AMT-FREE FUND (the Fund) seeks
current income exempt from federal income tax.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Lyle J. Fitterer, CFA, CPA
Mathew Kiselak
Robert J. Miller
FUND INCEPTION
July 31, 2001
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
AAA (26%)
AA (26%)
A (26%)
BBB (9%)
BB/Ba (1%)
Cash (1%)
Unrated (11%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
0-1 Year (8%)
1-3 Years (6%)
3-5 Years (12%)
5-10 Years (48%)
10-20 Years (24%)
20+ Years (2%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Standard and Poor's rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to
CCC may be modified by the addition of a plus (+) or minus (-) sign to show
relative standing within the rating categories. Moody's rates the
creditworthiness of bonds, ranging from Aaa (highest) to CC (lowest).
Ratings Aa to B may be modified by the addition of a number 1 (highest) to
3 (lowest) to show relative standing within the ratings categories. Moody's
rates the creditworthiness of short-term US tax-exempt municipal securities
from MIG-1/VMIG-1 (highest) to SG (lowest). Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit
quality is subject to change and is calculated based on the total
investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
Wells Fargo Advantage Municipal Income Funds 7
Performance Highlights
WELLS FARGO ADVANTAGE INTERMEDIATE TAX/AMT-FREE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN3 (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge
------------------------------------- ------------------------------------- Expense Ratio
INTERMEDIATE Life of Life of -----------------
TAX/AMT-FREE FUND 6 Months* 1 Year 5 Year Fund 6 Months* 1 Year 5 Year Fund Gross(4) Net(5)
- ----------------- --------- ------ ----- ------- --------- ------ ------ ------- -------- ------
Class A (WFTAX) 3.53 11.73 3.28 4.70 6.73 15.19 3.91 5.08 0.90% 0.70%
Class C (WFTFX) 5.33 13.33 3.15 4.30 6.33 14.33 3.15 4.30 1.63% 1.45%
Administrator Class (WFITX) 6.89 15.41 3.95 5.14 0.78% 0.60%
Institutional Class (WITIX) 6.88 15.50 4.02 5.26 0.56% 0.42%
Investor Class (SIMBX) 6.81 15.25 3.91 5.20 0.96% 0.75%
Barclays Capital Municipal Bond 1-15 Year Blend
Index(6) 4.51 8.89 4.40 4.80
* 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 3.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR, INSTITUTIONAL AND INVESTOR CLASS SHARES ARE SOLD WITHOUT
A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 high-yield securities risk. Consult the Fund's
prospectus for additional information on these and other risks. A portion of the
Fund's income may be subject to federal, state, and/or local income taxes or the
alternative minimum tax (AMT). Any capital gains distributions may be taxable.
- ----------
(3.) Performance shown prior to the inception of Class A and Class C on July 31,
2007, reflects the performance of the Investor Class shares, adjusted to
reflect Class A sales charges and Class C sales charges and expenses
(except during those periods in which expenses of Class A or Class C would
have been lower than those of the Investor Class no such adjustment is
reflected). The Investor Class shares incepted on July 31, 2001.
Performance shown prior to the inception of Administrator Class and
Institutional Class shares on March 31, 2008, reflects the performance of
the Investor Class shares, and includes expenses that are not applicable to
and are higher than those of the Administrator Class (except during those
periods in which expenses of the Investor Class would have been lower than
those of the Administrator Class, the expenses of the Administrator Class
are reflected) and Institutional Class shares. Returns for the Index shown
in the Life of Fund column are as of the Fund inception date.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital Municipal Bond 1-15 year Blend Index is the 1-15 Year
Blend component of the Barclays Capital Municipal Bond Index. The Barclays
Capital Municipal Bond Index is an unmanaged index composed of tax-exempt
bonds with maturities between 6-8 years and a minimum credit rating of Baa.
You cannot invest directly in an index.
8 Wells Fargo Advantage Municipal Income Funds
Performance Highlights
WELLS FARGO ADVANTAGE MUNICIPAL BOND FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE MUNICIPAL BOND FUND (the Fund) seeks current income
exempt from federal income tax.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Lyle J. Fitterer, CFA, CPA
Mathew Kiselak
Robert J. Miller
FUND INCEPTION
October 23, 1986
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
AAA (12%)
AA (17%)
A (31%)
BBB (14%)
BB/Ba (4%)
Cash (1%)
Unrated (21%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
0-1 Year (4%)
1-3 Years (5%)
3-5 Years (7%)
5-10 Years (35%)
10-20 Years (28%)
20+ Years (21%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Standard and Poor's rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to
CCC may be modified by the addition of a plus (+) or minus (-) sign to show
relative standing within the rating categories. Moody's rates the
creditworthiness of bonds, ranging from Aaa (highest) to CC (lowest).
Ratings Aa to B may be modified by the addition of a number 1 (highest) to
3 (lowest) to show relative standing within the ratings categories. Moody's
rates the creditworthiness of short-term US tax-exempt municipal securities
from MIG-1/VMIG-1 (highest) to SG (lowest). Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit
quality is subject to change and is calculated based on the total
investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
Wells Fargo Advantage Municipal Income Funds 9
Performance Highlights
WELLS FARGO ADVANTAGE MUNICIPAL BOND FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
MUNICIPAL BOND FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WMFAX) 5.11 18.92 3.53 4.88 10.02 24.46 4.49 5.36 0.89% 0.75%
Class B** (WMFBX) 4.61 18.54 3.36 4.83 9.61 23.54 3.71 4.83 1.64% 1.50%
Class C (WMFCX) 8.61 22.53 3.71 4.60 9.61 23.53 3.71 4.60 1.63% 1.50%
Administrator Class (WMFDX) 10.11 24.64 4.77 5.52 0.81% 0.60%
Institutional Class (WMBIX) 10.20 24.71 4.62 5.45 0.52% 0.50%
Investor Class (SXFIX) 10.00 24.40 4.51 5.39 0.94% 0.80%
Barclays Capital Municipal Bond Index(6) 6.10 12.91 4.32 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 4.50%. 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%. Administrator,
Institutional and Investor Class shares are sold without a front-end sales
charge or contingent deferred sales charge.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 high-yield securities risk. Consult the Fund's
prospectus for additional information on these and other risks. A portion of the
Fund's income may be subject to federal, state, and/or local income taxes or the
alternative minimum tax (AMT). Any capital gains distributions may be taxable.
- ----------
(3.) Performance shown prior to the inception of Class A, Class B and Class C
shares on April 11, 2005, reflects the performance of the Investor Class
shares, adjusted to reflect Class A, Class B and Class C sales charges and
expenses, as applicable. Performance shown prior to the inception of the
Administrator Class shares on April 11, 2005, reflects the performance of
the Investor Class shares, and includes expenses that are not applicable to
and are higher than those of the Administrator Class shares. Performance
shown prior to the inception of Institutional Class shares on March 31,
2008, 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.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital Municipal Bond Index is an unmanaged index composed of
long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot
invest directly in an Index.
10 Wells Fargo Advantage Municipal Income Funds
Performance Highlights
WELLS FARGO ADVANTAGE SHORT-TERM MUNICIPAL BOND FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE SHORT-TERM MUNICIPAL BOND FUND (the Fund) seeks
current income exempt from federal income tax consistent with capital
preservation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Wendy Casetta
Lyle J. Fitterer, CFA, CPA
FUND INCEPTION
December 31, 1991
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
AAA (25%)
AA (21%)
A (31%)
BBB (9%)
BB/Ba (1%)
Cash (5%)
Unrated (8%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
0-1 Year (31%)
1-3 Years (20%)
3-5 Years (26%)
5-10 Years (18%)
10-20 Years (4%)
20+ Years (1%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Standard and Poor's rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to
CCC may be modified by the addition of a plus (+) or minus (-) sign to show
relative standing within the rating categories. Moody's rates the
creditworthiness of bonds, ranging from Aaa (highest) to CC (lowest).
Ratings Aa to B may be modified by the addition of a number 1 (highest) to
3 (lowest) to show relative standing within the ratings categories. Moody's
rates the creditworthiness of short-term US tax-exempt municipal securities
from MIG-1/VMIG-1 (highest) to SG (lowest). Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit
quality is subject to change and is calculated based on the total
investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
Wells Fargo Advantage Municipal Income Funds 11
Performance Highlights
WELLS FARGO ADVANTAGE SHORT-TERM MUNICIPAL BOND FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
SHORT-TERM MUNICIPAL BOND FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------------------ --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WSMAX) 0.77 7.19 2.51 3.26 3.89 10.50 3.14 3.57 0.87% 0.60%
Class C (WSSCX) 2.48 8.66 2.91 3.08 3.48 9.66 2.91 3.08 1.61% 1.35%
Institutional Class (WSBIX) 3.99 10.78 3.90 4.20 0.55% 0.39%
Investor Class (STSMX) 3.85 10.43 3.79 4.15 0.92% 0.66%
Barclays Capital 1- and 3-Year Composite Municipal Bond Index(6) 2.15 4.63 3.72 3.94
* 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 3.00%. 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.
INSTITUTIONAL CLASS AND INVESTOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES
CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 high-yield securities risk. Consult the Fund's
prospectus for additional information on these and other risks. A portion of the
Fund's income may be subject to federal, state, and/or local income taxes or the
alternative minimum tax (AMT). Any capital gains distributions may be taxable.
- ----------
(3.) Class A shares incepted on July 18, 2008. Class C shares incepted on
January 31, 2003. Performance shown prior to the inception of the Class C
shares reflects the performance of the Investor Class shares, adjusted to
reflect Class C sales charges and expenses. Performance shown prior to the
inception of Class A reflects the performance of the Class C shares, and
includes expenses that are not applicable to and are higher than those of
the Class A shares, adjusted to reflect Class A sales charges.
Institutional Class shares incepted on March 31, 2008. Performance shown
prior to the inception of the Institutional Class 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.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital 1- and 3-Year Composite Municipal Bond Index is a blended
index weighted 50% in the Barclays Capital 1-Year Municipal Bond Index (the
1-2 year component of the Barclays Capital Municipal Bond Index, which is
an unmanaged index composed of long-term tax exempt bonds with a minimum
credit rating of Baa), and 50% in the Barclays Capital 3-Year Municipal
Bond Index (the 2-4 year component of the Barclays Capital Municipal Bond
Index. You cannot invest directly in an Index.
12 Wells Fargo Advantage Municipal Income Funds
Performance Highlights
WELLS FARGO ADVANTAGE ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE ULTRA SHORT-TERM MUNICIPAL INCOME FUND (the Fund)
seeks current income exempt from federal income tax consistent with capital
preservation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Julio C. Bonilla, CFA
Wendy Casetta
Lyle J. Fitterer, CFA, CPA
FUND INCEPTION
November 30, 1995
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
AAA (54%)
AA (17%)
A (16%)
BBB (6%)
Unrated (7%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
0-1 Year (68%)
1-3 Years (18%)
3-5 Years (6%)
5-10 Years (5%)
10-20 Years (1%)
20+ Years (2%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Standard and Poor's rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to
CCC may be modified by the addition of a plus (+) or minus (-) sign to show
relative standing within the rating categories. Moody's rates the
creditworthiness of bonds, ranging from Aaa (highest) to CC (lowest).
Ratings Aa to B may be modified by the addition of a number 1 (highest) to
3 (lowest) to show relative standing within the ratings categories. Moody's
rates the creditworthiness of short-term US tax-exempt municipal securities
from MIG-1/VMIG-1 (highest) to SG (lowest). Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit
quality is subject to change and is calculated based on the total
investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
Wells Fargo Advantage Municipal Income Funds 13
Performance Highlights
WELLS FARGO ADVANTAGE ULTRA SHORT-TERM MUNICIPAL INCOME FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge Expense Ratio
ULTRA SHORT-TERM ------------------------------------- ------------------------------------- -----------------
MUNICIPAL INCOME FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- --------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (SMAVX) (0.45) 3.69 3.11 2.60 1.58 5.80 3.53 2.81 0.85% 0.67%
Class C (WFUSX) 0.20 3.77 2.79 2.29 1.20 4.77 2.79 2.29 1.59% 1.42%
Institutional Class (SMAIX) 1.74 6.13 3.94 3.38 0.52% 0.37%
Investor Class (SMUAX) 1.56 5.53 3.54 3.04 0.91% 0.72%
Barclays Capital 1-Year Municipal Bond Index(6) 1.55 3.49 3.42 3.48
* 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 2.00%. 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. INSTITUTIONAL CLASS AND INVESTOR CLASS SHARES ARE SOLD WITHOUT A
FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 high-yield securities risk. Consult the Fund's
prospectus for additional information on these and other risks. A portion of the
Fund's income may be subject to federal, state, and/or local income taxes or the
alternative minimum tax (AMT). Any capital gains distributions may be taxable.
- ----------
(3.) Effective June 20, 2008, the Advisor Class was renamed Class A and modified
to assume the features and attributes of Class A. Performance shown for the
Class A shares from October 2, 2000, through June 20, 2008, includes
Advisor Class expenses and is adjusted to reflect Class A sales charges.
Performance shown prior to the inception of the Class A shares on October
2, 2000, reflects the performance of the Investor Class shares, adjusted to
reflect Advisor Class expenses and Class A sales charges. Performance shown
prior to the inception of Class C shares on June 20, 2008, reflects the
performance of the Class A shares, adjusted to reflect Class C sales
charges and expenses. Performance shown prior to the inception of the
Institutional Class shares on July 31, 2000, 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.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital 1-Year Municipal Bond Index is the 1-year component of the
Barclays Capital Municipal Bond Index, which is an unmanaged index composed
of long-term tax-exempt bonds with a minimum credit rating of Baa. You
cannot invest directly in an Index.
14 Wells Fargo Advantage Municipal Income Funds
Performance Highlights
WELLS FARGO ADVANTAGE WISCONSIN TAX-FREE FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE WISCONSIN TAX-FREE FUND (the Fund) seeks current
income exempt from federal income tax and Wisconsin individual income tax.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Lyle J. Fitterer, CFA, CPA
Thomas Stoeckmann
FUND INCEPTION
April 6, 2001
CREDIT QUALITY(1)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
AAA (34%)
AA (19%)
A (22%)
BBB (12%)
Unrated (13%)
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF DECEMBER 31, 2009)
(PIE CHART)
0-1 Year (22%)
1-3 Years (13%)
3-5 Years (6%)
5-10 Years (25%)
10-20 Years (18%)
20+ Years (16%)
- ----------
(1.) The ratings indicated are from Standard & Poor's, Moody's Investors
Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality
ratings apply to underlying holdings of the Fund and not the Fund itself.
Standard and Poor's rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Standard and Poor's rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to
CCC may be modified by the addition of a plus (+) or minus (-) sign to show
relative standing within the rating categories. Moody's rates the
creditworthiness of bonds, ranging from Aaa (highest) to CC (lowest).
Ratings Aa to B may be modified by the addition of a number 1 (highest) to
3 (lowest) to show relative standing within the ratings categories. Moody's
rates the creditworthiness of short-term US tax-exempt municipal securities
from MIG-1/VMIG-1 (highest) to SG (lowest). Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit
quality is subject to change and is calculated based on the total
investments of the Fund.
(2.) Maturity distribution is subject to change and is calculated based on the
total investments of the Fund.
Wells Fargo Advantage Municipal Income Funds 15
Performance Highlights
WELLS FARGO ADVANTAGE WISCONSIN TAX-FREE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF DECEMBER 31, 2009)
Including Sales Charge Excluding Sales Charge
------------------------------------- ------------------------------------- Expense Ratio
Life of Life of -----------------
WISCONSIN TAX-FREE FUND 6 Months* 1 Year 5 Year Fund 6 Months* 1 Year 5 Year Fund Gross(4) Net(5)
--------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WWTFX) (0.83) 5.72 2.49 3.84 3.83 10.71 3.44 4.39 0.97% 0.68%
Class C (WWTCX) 2.42 8.82 3.15 4.06 3.42 9.82 3.15 4.06 1.73% 1.49%
Investor Class (SWFRX) 3.81 10.64 3.94 5.09 1.05% 0.75%
Barclays Capital Municipal Bond Index(6) 6.10 12.91 4.32 5.01
* 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 4.50%. 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. INVESTOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. 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 Wisconsin municipal securities risk, Puerto
Rico municipal securities risk and high-yield securities risk. Consult the
Fund's prospectus for additional information on these and other risks. A portion
of the Fund's income may be subject to federal, state, and/or local income taxes
or the alternative minimum tax (AMT). Any capital gains distributions may be
taxable.
- ----------
(3.) Performance shown prior to the inception of Class C shares on December 26,
2002, reflects the performance of the Investor Class shares, adjusted to
reflect Class C sales charges and expenses. Performance shown prior to the
inception of Class A shares on March 31, 2008, reflects the performance of
the Class C shares, and include expenses that are not applicable to and are
higher than those of the Class A shares, adjusted to reflect Class A sales
charges. Returns for the Index shown in the Life of Fund column are as of
the Fund inception date.
(4.) Reflects the gross expense ratio as stated in the November 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through October 31,
2010, 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.) Barclays Capital Municipal Bond Index is an unmanaged index composed of
long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot
invest directly in an Index.
16 Wells Fargo Advantage Municipal Income 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 July 1, 2009 to
December 31, 2009.
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
INTERMEDIATE TAX/AMT-FREE FUND 07-01-2009 12-31-2009 the Period(1) Expense Ratio
- ------------------------------ ------------- ------------- ------------- -------------
CLASS A
Actual $1,000.00 $1,067.30 $3.65 0.70%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.68 $3.57 0.70%
CLASS C
Actual $1,000.00 $1,063.30 $7.54 1.45%
Hypothetical (5% Return before expenses) $1,000.00 $1,017.90 $7.37 1.45%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,068.90 $3.13 0.60%
Hypothetical (5% Return before expenses) $1,000.00 $1,022.18 $3.06 0.60%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,068.80 $2.19 0.42%
Hypothetical (5% Return before expenses) $1,000.00 $1,023.09 $2.14 0.42%
INVESTOR CLASS
Actual $1,000.00 $1,068.10 $3.91 0.75%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.42 $3.82 0.75%
Wells Fargo Advantage Municipal Income Funds 17
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
07-01-2009 12-31-2009 the Period(1) Expense Ratio
------------- ------------- ------------- -------------
MUNICIPAL BOND FUND
CLASS A
Actual $1,000.00 $1,100.20 $3.97 0.75%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.42 $3.82 0.75%
CLASS B
Actual $1,000.00 $1,096.10 $7.92 1.50%
Hypothetical (5% Return before expenses) $1,000.00 $1,017.64 $7.63 1.50%
CLASS C
Actual $1,000.00 $1,096.10 $7.92 1.50%
Hypothetical (5% Return before expenses) $1,000.00 $1,017.64 $7.63 1.50%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,101.10 $3.18 0.60%
Hypothetical (5% Return before expenses) $1,000.00 $1,022.18 $3.06 0.60%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,102.00 $2.60 0.49%
Hypothetical (5% Return before expenses) $1,000.00 $1,022.74 $2.50 0.49%
INVESTOR CLASS
Actual $1,000.00 $1,100.00 $4.23 0.80%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.17 $4.08 0.80%
SHORT-TERM MUNICIPAL BOND FUND
CLASS A
Actual $1,000.00 $1,038.90 $3.08 0.60%
Hypothetical (5% Return before expenses) $1,000.00 $1,022.18 $3.06 0.60%
CLASS C
Actual $1,000.00 $1,034.80 $6.92 1.35%
Hypothetical (5% Return before expenses) $1,000.00 $1,018.40 $6.87 1.35%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,039.90 $2.06 0.40%
Hypothetical (5% Return before expenses) $1,000.00 $1,023.19 $2.04 0.40%
INVESTOR CLASS
Actual $1,000.00 $1,038.50 $3.39 0.66%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.88 $3.36 0.66%
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
CLASS A
Actual $1,000.00 $1,015.80 $3.40 0.67%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.83 $3.41 0.67%
CLASS C
Actual $1,000.00 $1,012.00 $7.20 1.42%
Hypothetical (5% Return before expenses) $1,000.00 $1,018.05 $7.22 1.42%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,017.40 $1.88 0.37%
Hypothetical (5% Return before expenses) $1,000.00 $1,023.34 $1.89 0.37%
INVESTOR CLASS
Actual $1,000.00 $1,015.60 $3.66 0.72%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.58 $3.67 0.72%
18 Wells Fargo Advantage Municipal Income Funds
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
07-01-2009 12-31-2009 the Period(1) Expense Ratio
------------- ------------- ------------- -------------
WISCONSIN TAX-FREE FUND
CLASS A
Actual $1,000.00 $1,038.30 $3.60 0.70%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.68 $3.57 0.70%
CLASS C
Actual $1,000.00 $1,034.20 $7.64 1.49%
Hypothetical (5% Return before expenses) $1,000.00 $1,017.69 $7.58 1.49%
INVESTOR CLASS
Actual $1,000.00 $1,038.10 $3.85 0.75%
Hypothetical (5% Return before expenses) $1,000.00 $1,021.42 $3.82 0.75%
- ----------
(1.) Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in
the most recent six-month period divided by 365 (to reflect the one-half
year period).
Wells Fargo Advantage Municipal Income Funds 19
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MUNICIPAL BONDS & NOTES: 98.68%
ALABAMA: 2.01%
$ 2,650,000 ALABAMA PUBLIC SCHOOL & COLLEGE AUTHORITY SERIES A (SALES TAX REVENUE) 5.00% 05/01/2017 $ 2,966,278
1,000,000 JEFFERSON COUNTY AL SCHOOL WARRANTS (LEASE REVENUE, AGM INSURED) 5.20 02/15/2012 983,230
3,480,000 JEFFERSON COUNTY AL SERIES B 8 (SEWER REVENUE, AGM INSURED) 5.25 02/01/2016 3,307,601
500,000 JEFFERSON COUNTY AL SERIES C 10 (SEWER REVENUE, AGM INSURED)+/-ss(a)
(m)(n) 0.35 02/01/2042 202,500
1,525,000 JEFFERSON COUNTY AL SERIES C 5 (SEWER REVENUE, XLCA INSURED)+/-ss(a)(m)(n) 0.70 02/01/2040 533,750
275,000 JEFFERSON COUNTY AL SEWER REVENUE SERIES C 2
(SEWER REVENUE, FGIC INSURED)+/-ss(a)(m)(n) 0.65 02/01/2042 96,250
775,000 JEFFERSON COUNTY AL SEWER REVENUE SERIES C 9
(SEWER REVENUE, AGM LOC)+/-ss(a)(m)(n) 0.35 02/01/2042 271,250
1,050,000 JEFFERSON COUNTY AL SUBSERIES B 1 A (SEWER REVENUE, FGIC INSURED)+/-ss(a)
(m)(n) 0.70 02/01/2042 367,500
2,450,000 JEFFERSON COUNTY AL SUBSERIES B 1 C (SEWER REVENUE, FGIC INSURED)+/-ss(a)
(m)(n) 0.71 02/01/2042 857,500
250,000 JEFFERSON COUNTY AL SUBSERIES B 1 E (SEWER REVENUE, FGIC INSURED)+/-ss(a)
(m)(n) 0.70 02/01/2042 87,500
3,000,000 MOBILE AL INDUSTRIAL DEVELOPMENT BOARD ALABAMA POWER COMPANY BARRY SERIES C
(INDUSTRIAL REVENUE)+/-ss 5.00 06/01/2034 3,297,660
2,000,000 UNIVERSITY OF ALABAMA AT BIRMINGHAM SERIES B (HCFR, REGIONS BANK LOC)+/-ss 0.95 09/01/2031 2,000,000
14,971,019
-------------
ALASKA: 0.06%
350,000 ALASKA ENERGY AUTHORITY BRADLEY LAKE FOURTH SERIES (ELECTRIC REVENUE, AGM
INSURED) 6.00 07/01/2015 403,564
55,000 NORTHERN TOBACCO SECURITIZATION CORPORATION AK TOBACCO SETTLEMENT REVENUE
ASSET-BACKED (TOBACCO SETTLEMENT FUNDED) 4.80 06/01/2011 58,277
461,841
-------------
ARIZONA: 2.27%
2,750,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S HOSPITAL SERIES A
(HCFR)+/-ss 1.32 02/01/2042 2,443,375
4,875,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S HOSPITAL SERIES B
(HCFR)+/-ss 1.17 02/01/2042 4,331,438
950,000 GILBERT AZ WATER RESERVE MUNICIPAL PROPERTY CORPORATION SUB LIEN
(WATER REVENUE) 4.75 10/01/2032 949,915
2,950,000 GOODYEAR AZ MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT
(SPECIAL ASSESSMENT REVENUE, AMBAC INSURED) 5.25 01/01/2020 3,086,998
2,875,000 MARANA AZ MUNICIPAL PROPERTY CORPORATION SERIES B (LEASE REVENUE) 5.13 07/01/2028 2,886,903
915,000 PINAL COUNTY AZ ELECTRICAL DISTRICT # 4 (ELECTRIC REVENUE) 4.75 12/01/2015 924,836
1,450,000 UNIVERSITY AZ COP PROJECTS SERIES B (COLLEGE & UNIVERSITY REVENUE, AMBAC
INSURED) 5.00 06/01/2021 1,486,424
535,000 VERRADO AZ COMMUNITY FACILITIES DISTRICT # 1 (PROPERTY TAX REVENUE) 4.85 07/15/2014 522,149
265,000 VERRADO AZ COMMUNITY FACILITIES DISTRICT # 1 (PROPERTY TAX REVENUE) 6.00 07/15/2013 271,164
16,903,202
-------------
ARKANSAS: 0.22%
1,530,000 ROGERS AR CAPITAL IMPROVEMENT (PROPERTY TAX REVENUE, XLCA INSURED) 4.25 03/01/2031 1,629,006
-------------
CALIFORNIA: 17.82%
5,590,000 ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY SUB LIEN SERIES A
(TRANSPORTATION REVENUE, AMBAC INSURED)## 5.73 10/01/2018 3,358,025
4,615,000 ALHAMBRA CA COP POLICE FACILITIES (LEASE REVENUE, AMBAC INSURED) 6.75 09/01/2023 5,236,917
3,000,000 BALDWIN PARK CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE)## 4.56 08/01/2014 2,434,020
1,000,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK CALIFORNIA INDEPENDENT
OPERATOR SERIES A (ELECTRIC, POWER & LIGHT REVENUE) 5.75 02/01/2039 1,028,290
1,800,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK CALIFORNIA INDEPENDENT
SYSTEM OPERATOR SERIES A (ELECTRIC POWER REVENUE) 5.25 02/01/2024 1,857,366
1,500,000 CALIFORNIA STATE DWR POWER (WATER REVENUE) 5.00 05/01/2021 1,610,505
6,930,000 CALIFORNIA STATE DWR POWER SUBSERIES F 5 (WATER REVENUE) 5.00 05/01/2022 7,376,223
13,000,000 CALIFORNIA STATE DWR POWER SUPPLY SUBSERIES G 5
(WATER REVENUE, AGM INSURED)+/-ss 0.25 05/01/2016 13,000,000
1,865,000 CALIFORNIA STATE DWR SERIES AF (WATER REVENUE) 5.00 12/01/2021 2,090,684
20 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
CALIFORNIA (continued)
$ 1,890,000 CALIFORNIA STATE PUBLIC WORKS BOARD UNIVERSITY OF CALIFORNIA RESEARCH PROJECT
J- L (COLLEGE & UNIVERSITY REVENUE, NATL-RE INSURED) 5.25% 11/01/2028 $ 1,957,964
5,000,000 CALIFORNIA STATEWIDE CDA (HCFR)+/-ss++ 0.50 07/01/2012 5,000,000
1,000,000 CAMPBELL CALIFORNIA UNION HIGH SCHOOL DISTRICT (PROPERTY TAX REVENUE) 5.00 08/01/2030 1,042,490
1,800,000 DINUBA CA REDEVELOPMENT AGENCY MERGED CITY REDEVELOPMENT PROJECT # 2
(TAX/ALLOCATION REVENUE) 4.45 10/01/2011 1,796,526
1,900,000 FOOTHILL-EASTERN CORRIDOR AGENCY CA SUB LIEN (TOLL ROAD REVENUE) 5.25 07/15/2010 1,903,553
4,150,000 IRVINE RANCH CA WATER DISTRICT SERIES A (WATER REVENUE, LANDESBANK
BADEN-WURTTEMBERG LOC)+/-ss 0.25 07/01/2035 4,150,000
2,565,000 LAKESIDE CA USD ELECTION 2008 SERIES A (PROPERTY TAX REVENUE)## 3.94 06/01/2014 2,161,397
2,000,000 LONG BEACH CA COMMUNITY COLLEGE DISTRICT BOND ANTICIPATION NOTES SERIES A 9.85 01/15/2013 2,404,060
2,000,000 LOS ANGELES CA DEPARTMENT AIRPORTS SERIES A (AIRPORT & MARINA REVENUE) 4.00 05/15/2019 1,999,300
3,000,000 LOS ANGELES CA HARBOR DEPARTMENT SERIES C (AIRPORT & MARINA REVENUE) 5.00 08/01/2021 3,354,120
7,725,000 LOS ANGELES CA HARBOR DEPARTMENT SERIES C (AIRPORT & MARINA REVENUE) 5.25 08/01/2023 8,569,574
3,000,000 LOS ANGELES CA METROPOLITAN TRANSPORTATION AUTHORITY SERIES B (SALES TAX
REVENUE) 4.00 07/01/2020 3,094,860
1,925,000 LOS ANGELES CA MUNICIPAL IMPROVEMENT CORPORATION SERIES C (LEASE REVENUE) 4.50 09/01/2019 1,893,931
2,380,000 LOS ANGELES CA MUNICIPAL IMPROVEMENT CORPORATION SERIES C (LEASE REVENUE) 5.00 09/01/2018 2,470,892
1,500,000 LOS ANGELES CA UNI SCHOOL DISTRICT ELECTION2004 SERIES H
(PROPERTY TAX REVENUE, AGM INSURED) 5.00 07/01/2019 1,623,630
3,000,000 LOS ANGELES CA USD ELECTION 2002 SERIES C (PROPERTY TAX REVENUE, AGM INSURED) 5.00 07/01/2024 3,153,030
1,790,000 LOS ANGELES CA USD ELECTION 2005 SERIES E (PROPERTY TAX REVENUE, AGM INSURED) 5.00 07/01/2022 1,881,899
1,385,000 LOS ANGELES CA USD SERIES A 2 (PROPERTY TAX REVENUE, NATL-RE INSURED) 5.00 07/01/2020 1,461,438
6,675,000 LOS ANGELES CA WASTEWATER SYSTEM REFUNDING (SEWER REVENUE, AGM INSURED) 5.00 06/01/2022 6,955,016
2,500,000 LOS ANGELES COUNTY CA METROPOLITAN TRANSPORTATION AUTHORITY (SALES TAX
REVENUE) 5.00 07/01/2019 2,835,450
1,750,000 LOS ANGELES COUNTY CA METROPOLITAN TRANSPORTATION AUTHORITY SERIES A
(SALES TAX REVENUE, AMBAC INSURED) 5.00 07/01/2035 1,785,385
1,215,000 NEVADA COUNTY CA COP (LEASE REVENUE, NATL-RE INSURED) 5.25 10/01/2019 1,223,578
2,000,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.79 07/01/2017 1,766,000
10,500,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.82 07/01/2019 8,491,875
2,000,000 RICHMOND CA JOINT POWERS FINANCING AUTHORITY POINT POTRERO SERIES A (LEASE
REVENUE) 6.25 07/01/2024 2,095,980
1,000,000 ROSEVILLE CA NATURAL GAS FINANCING AUTHORITY (UTILITIES REVENUE) 5.00 02/15/2015 1,043,550
5,000,000 SAN DIEGO CA USD ELECTION 1998 SERIES E 2 (PROPERTY TAX REVENUE, FSA INSURED) 5.50 07/01/2027 5,766,100
2,750,000 SAN JOAQUIN CA DELTA COMMUNITY COLLEGE DISTRICT ELECTION 2004 CAPITAL
APPRECIATION SERIES B (PROPERTY TAX REVENUE, AGM INSURED)## 4.20 08/01/2018 1,893,870
1,200,000 SAN JOSE CA REDEVELOPMENT AGENCY SERIES A
(TAX/ALLOCATION REVENUE, NATL-RE INSURED) 5.00 08/01/2020 1,188,972
225,000 SANTA ROSA CA RANCHERIA TACHI YOKUT TRIBE ENTERPRISE (OTHER REVENUE)++ 4.50 03/01/2011 224,658
100,000 SOUTHERN CA PUBLIC POWER AUTHORITY PROJECTS (ELECTRIC REVENUE) 6.75 07/01/2013 116,496
2,000,000 SOUTHERN CA PUBLIC POWER AUTHORITY TRANSMISSION PROJECT SERIES S (ELECTRIC
REVENUE) 5.75 07/01/2024 2,265,500
2,155,000 UNIVERSITY OF CALIFORNIA REVENUES GENERAL SERIES Q (COLLEGE & UNIVERSITY
REVENUE) 5.25 05/15/2024 2,376,793
300,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 5.00 07/01/2016 306,171
260,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 5.13 07/01/2017 263,146
1,540,000 WEST BASIN CA MUNICIPAL WATER DISTRICT COP REFUNDING SERIES A
(WATER REVENUE, NATL-RE INSURED) 5.00 08/01/2025 1,571,293
2,560,000 WEST BASIN CA MUNICIPAL WATER DISTRICT COP REFUNDING SERIES B
(WATER REVENUE, ASSURED GUARANTY) 5.00 08/01/2022 2,616,909
132,697,436
-------------
COLORADO: 1.51%
1,310,000 COLORADO ECFA CHARTER SCHOOL MONUMENT ACADEMY PROJECT (OTHER REVENUE) 5.50 10/01/2017 1,212,287
4,925,000 COLORADO HEALTH FACILITIES AUTHORITY (HCFR)+/-ss++ 0.50 11/15/2027 4,925,000
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH INITIATIVES D2
(HCFR)+/-ss 5.25 10/01/2038 1,100,930
1,500,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES B2 (TOLL ROAD REVENUE, NATL-RE
INSURED)+/-ss 5.00 09/01/2039 1,554,960
250,000 NORTH RANGE METROPOLITAN DISTRICT # 1 CO (PROPERTY TAX REVENUE, ACA INSURED) 5.00 12/15/2015 228,483
2,150,000 PUBLIC AUTHORITY FOR CO ENERGY NATURAL GAS (UTILITIES REVENUE) 5.75 11/15/2018 2,252,190
11,273,850
-------------
Wells Fargo Advantage Municipal Income Funds 21
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
FLORIDA: 7.26%
$ 1,150,000 AVE MARIA STEWARDSHIP COMMUNITY DEVELOPMENT DISTRICT FL ANTICIPATION BONDS
(SPECIAL ASSESSMENT REVENUE) 4.80% 11/01/2012 $ 880,509
1,500,000 BROWARD COUNTY FL HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH SERVICES
(HCFR, SUNTRUST BANK LOC) 5.50 08/15/2014 1,536,855
1,000,000 CAPE CORAL FL BOND ANTICIPATION NOTES (WATER REVENUE) 6.00 10/01/2011 1,018,980
1,325,000 CONNERTON WEST COMMUNITY DEVELOPMENT DISTRICT FL SERIES B
(SPECIAL ASSESSMENT REVENUE)(i) 5.13 05/01/2016 507,714
1,000,000 FLORIDA STATE BOARD OF EDUCATION SERIES B (OTHER REVENUE, NATL-RE INSURED) 5.00 07/01/2017 1,104,160
2,000,000 FLORIDA STATE BOARD OF EDUCATION SERIES D (PROPERTY TAX REVENUE) 5.00 06/01/2021 2,174,160
515,000 FLORIDA STATE JACKSONVILLE TRANSPORTATION AUTHORITY (TOLL ROAD REVENUE) 9.20 01/01/2015 630,030
850,000 GULF BREEZE FL REVENUE LOCAL GOVERNMENT PUTTABLE
(OTHER REVENUE, FGIC INSURED)+/-ss(o)(o) 5.36 12/01/2015 859,299
655,000 GULF BREEZE FL REVENUE MIAMI BEACH LOCAL GOVERNMENT SERIES B
(OTHER REVENUE, FGIC INSURED)+/-ss 4.75 12/01/2015 659,461
1,650,000 GULF BREEZE FL REVENUE VARIOUS LOCAL GOVERNMENT LOAN E
(OTHER REVENUE, FGIC INSURED) 5.00 12/01/2020 1,580,667
4,930,000 HILLSBOROUGH COUNTY FL IDA (RESOURCE RECOVERY REVENUE, AMBAC INSURED)+/-ss 5.00 12/01/2034 5,126,362
2,755,000 HILLSBOROUGH COUNTY FL SCHOOL BOARD COP (LEASE REVENUE, NATL-RE INSURED) 5.25 07/01/2017 3,064,083
2,950,000 JEA FL SUBSERIES B (ELECTRIC REVENUE) 5.00 10/01/2019 3,084,019
3,000,000 LAKELAND FL ENERGY SYSTEM REVENUE (ELECTRIC REVENUE)+/-ss 1.42 10/01/2014 3,025,500
3,000,000 MIAMI DADE COUNTY FL AVIATION SERIES A (AIRPORT & MARINA REVENUE) 5.50 10/01/2019 3,380,820
1,000,000 MIAMI DADE COUNTY FL EDUCATIONAL FACILITIES AUTHORITY UNIVERSITY OF
MIAMI SERIES A (COLLEGE & UNIVERSITY REVENUE) 5.25 04/01/2016 1,103,030
2,950,000 MIAMI DADE COUNTY FL WATER AND SEWER REFUNDING SERIES C
(WATER REVENUE, BHAC INSURED) 5.00 10/01/2024 3,178,242
965,000 NORTH BREVARD COUNTY FL HOSPITAL DISTRICT PARRISH MEDICAL CENTER PROJECT
(HCFR) 4.75 10/01/2013 1,022,678
1,080,000 NORTH BREVARD COUNTY FL HOSPITAL DISTRICT PARRISH MEDICAL CENTER PROJECT
(HCFR) 5.00 10/01/2015 1,150,913
1,500,000 OKEECHOBEE COUNTY FL DISPOSAL WASTE MANAGEMENT LANDFILL A
(RESOURCE RECOVERY REVENUE)+/-ss 5.00 07/01/2039 1,500,000
3,605,000 ORLANDO FL HOUSING AUTHORITY WEST OAKS APARTMENTS PROJECTS PUTABLE
(HOUSING REVENUE, FNMA INSURED)ss 5.05 08/01/2033 3,809,043
1,250,000 PALM BEACH COUNTY FL BIOMEDICAL RESEARCH PARK PROJECT SERIES C
(OTHER REVENUE, XLCA INSURED) 5.00 11/01/2017 1,383,750
5,000,000 PALM BEACH COUNTY FL HEALTH FACILITIES AUTHORITY POOLED HOSPITAL LOAN PROGRAM
(HCFR, SUNTRUST BANK LOC)+/-ss 0.50 11/01/2025 5,000,000
3,200,000 PUTNAM COUNTY FL DEVELOPMENT AUTHORITY PCR SEMINOLE PROJECT SERIES A
(ELECTRIC, POWER & LIGHT REVENUE, AMBAC INSURED)+/-ss 5.35 03/15/2042 3,396,224
75,000 ST. JOHNS COUNTY FL IDA FLAGLER HOSPITAL INCORPORATED SERIES A
(HCFR, NATL-RE INSURED, SUNTRUST BANK LOC)+/-ss 0.35 12/15/2026 75,000
2,500,000 UNIVERSITY NORTH FL FINANCING CORPORATION HOUSING PROJECT
(LEASE REVENUE, NATL-RE INSURED) 5.00 11/01/2016 2,750,450
1,000,000 USF FINANCING CORPORATION FL COP MASTER LEASE SERIES A
(LEASE REVENUE, AMBAC INSURED) 5.00 07/01/2018 1,043,720
54,045,669
-------------
GEORGIA: 2.65%
1,700,000 ATLANTA GA (PROPERTY TAX REVENUE, ASSURED GUARANTY) 5.25 12/01/2015 1,932,662
925,000 FORSYTH COUNTY GA HOSPITAL AUTHORITY GEORGIA BAPTIST HEALTHCARE SYSTEMS
PROJECT (HCFA REVENUE) 6.25 10/01/2018 1,083,684
10,000 GEORGIA MUNICIPAL ELECTRIC AUTHORITY POWER REVENUE PREREFUNDED
(ELECTRIC REVENUE, NATL-RE INSURED) 6.50 01/01/2017 12,012
690,000 GEORGIA MUNICIPAL ELECTRIC AUTHORITY POWER REVENUE UNREFUNDED
(ELECTRIC REVENUE, NATL-RE INSURED) 6.50 01/01/2017 801,642
1,500,000 GEORGIA STATE SERIES E (PROPERTY TAX REVENUE) 5.00 07/01/2017 1,754,565
3,500,000 GEORGIA STATE SERIES G (PROPERTY TAX REVENUE) 5.00 11/01/2016 4,090,205
1,000,000 MAIN STREET NATURAL GAS INCORPORATED GA GAS PROJECT SERIES A (UTILITIES
REVENUE) 5.00 09/15/2010 1,020,490
22 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
GEORGIA (continued)
$ 1,000,000 MAIN STREET NATURAL GAS INCORPORATED GA GAS SERIES A (NATURAL GAS REVENUE) 5.50% 09/15/2022 $ 1,012,140
2,450,000 MUNICIPAL ELECTRIC AUTHORITY GA SERIES B (ELECTRIC REVENUE) 5.00 01/01/2020 2,671,407
5,000,000 PUBLIC GAS PARTNERS INCORPORATED GA SERIES A (UTILITIES REVENUE) 5.00 10/01/2019 5,337,650
19,716,457
-------------
GUAM: 0.66%
1,000,000 GUAM EDUCATION FINANCING FOUNDATION COP GUAM PUBLIC SCHOOL FACILITIES PROJECT
SERIES A (LEASE REVENUE) 5.00 10/01/2015 1,012,880
2,195,000 GUAM EDUCATION FINANCING FOUNDATION COP GUAM PUBLIC SCHOOL FACILITIES PROJECT
SERIES A (LEASE REVENUE) 5.00 10/01/2017 2,189,249
1,635,000 GUAM GOVERNMENT LIMITED OBLIGATION REVENUE SECTION 30 SERIES A (OTHER REVENUE) 5.00 12/01/2014 1,704,749
4,906,878
-------------
ILLINOIS: 6.22%
135,000 AURORA IL SERIES B (TAX REVENUE) 4.90 12/30/2011 133,873
3,500,000 CHICAGO IL METROPOLITAN WATER RECLAMATION DISTRICT GREATER (PROPERTY TAX
REVENUE) 5.00 12/01/2033 4,109,840
555,000 CHICAGO IL SERIES A PREREFUNDED (PROPERTY TAX REVENUE, NATL-RE
INSURED)+/-ss(o)(o) 2.94 01/01/2028 611,094
3,180,000 CHICAGO IL SERIES C (PROPERTY TAX REVENUE) 5.00 01/01/2024 3,388,672
580,000 EUREKA IL EUREKA COLLEGE PROJECT 1998 B+/-ss 7.00 01/01/2019 582,564
2,805,000 HAWTHORN WOODS IL AQUATIC CENTER PROJECT (OTHER REVENUE) 4.75 12/30/2017 2,467,306
1,905,000 HUNTLEY IL SPECIAL SERVICE AREA # 9 (SPECIAL TAX REVENUE, ASSURED GUARANTY) 4.60 03/01/2017 2,030,559
4,560,000 ILLINOIS EDUCATION FACILITIES AUTHORITY (RECREATIONAL REVENUE)+/-ss 4.13 11/01/2036 4,610,023
1,550,000 ILLINOIS FINANCE AUTHORITY DEPAUL UNIVERSITY SERIES A
(COLLEGE & UNIVERSITY REVENUE, XLCA INSURED) 5.00 10/01/2019 1,593,524
1,840,000 ILLINOIS FINANCE AUTHORITY EAST ST. LOUIS PROJECT (OTHER REVENUE, XLCA
INSURED) 5.00 11/15/2013 1,839,871
1,570,000 ILLINOIS FINANCE AUTHORITY NEW MONEY COMMUNITY REHABILITATION A (HCFR) 4.90 07/01/2013 1,559,560
2,020,000 ILLINOIS FINANCE AUTHORITY NEW MONEY COMMUNITY REHABILITATION A (HCFR) 4.95 07/01/2014 1,986,488
3,345,000 ILLINOIS FINANCING AUTHORITY CHILDREN'S MEMORIAL HOSPITAL SERIES B (HCFR) 5.25 08/15/2016 3,582,963
620,000 ILLINOIS HEALTH FACILITIES AUTHORITY MERCY HOSPITAL & MEDICAL CENTER (HCFR) 10.00 01/01/2015 759,184
580,000 ILLINOIS HEALTH FACILITIES AUTHORITY MICHAEL REESE HOSPITAL SERIES A (HCFR,
FSA INSURED) 7.60 02/15/2019 721,044
1,000,000 ILLINOIS MUNICIPAL ELECTRIC AGENCY POWER (ELECTRIC REVENUE, NATL-RE & FGIC
INSURED) 5.00 02/01/2023 1,042,520
4,800,000 KANE & DE KALB COUNTRIES IL COMMUNITY UNIT SCHOOL DISTRICT # 302 PUTTERS
SERIES 283Z (PROPERTY TAX REVENUE, FGIC INSURED)+/-ss 0.26 02/01/2018 4,800,000
1,000,000 LAKE COUNTY IL COMMUNITY HIGH SCHOOL DISTRICT # 117 ANTIOCH CAPITAL
APPRECIATION
SERIES B (PROPERTY TAX REVENUE, NATL-RE INSURED)## 4.31 12/01/2016 739,050
1,200,000 NORTHERN COOK COUNTY IL SOLID WASTE AGENCY SERIES A
(RESOURCE RECOVERY REVENUE, NATL-RE INSURED) 5.00 05/01/2013 1,324,944
1,225,000 SOUTHWESTERN IL DEVELOPMENT AUTHORITY LOCAL GOVERNMENT PROGRAM COLLINSVILLE
LIMITED (SALES TAX REVENUE) 5.00 03/01/2025 999,147
455,000 TAZEWELL COUNTY IL SCHOOL DISTRICT # 51 (PROPERTY TAX REVENUE, NATL-RE & FGIC
INSURED) 9.00 12/01/2017 624,319
535,000 TAZEWELL COUNTY IL SCHOOL DISTRICT # 51 (PROPERTY TAX REVENUE, NATL-RE & FGIC
INSURED) 9.00 12/01/2018 744,998
9,730,000 WILL COUNTY IL COMMUNITY UNIT SCHOOL DISTRICT CAPITAL APPRECIATION
(PROPERTY TAX REVENUE, NATL-RE & FGIC INSURED)## 5.09 11/01/2018 6,111,802
46,363,345
-------------
INDIANA: 1.76%
1,000,000 FORT WAYNE REDEVELOPMENT AUTHORITY GRAND WAYNE CENTER PROJECT (LEASE REVENUE) 5.00 02/01/2020 1,043,210
100,000 HAMMOND MULTI-SCHOOL BUILDING CORPORATION FIRST MORTGAGE
(LEASE REVENUE, NATL-RE & FGIC INSURED) 5.00 07/15/2014 112,968
1,000,000 INDIANA BOND BANK HENDRICKS REGIONAL HEALTH A (OTHER REVENUE) 4.00 08/01/2017 1,019,650
1,050,000 INDIANA BOND BANK HENDRICKS REGIONAL HEALTH A (OTHER REVENUE) 5.00 02/01/2016 1,130,829
1,340,000 INDIANA BOND BANK HENDRICKS REGIONAL HEALTH A (OTHER REVENUE) 5.00 08/01/2016 1,450,684
900,000 INDIANA BOND BANK SPECIAL PROGRAM BMA INDEX SERIES B2 (UTILITIES REVENUE)+/-ss 0.90 10/15/2022 735,525
760,000 INDIANA BOND BANK SPECIAL PROGRAM SERIES A (UTILITIES REVENUE) 5.00 10/15/2017 779,410
500,000 INDIANA BOND BANK SPECIAL PROGRAM SERIES A (UTILITIES REVENUE) 5.25 10/15/2016 530,245
Wells Fargo Advantage Municipal Income Funds 23
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
INDIANA (continued)
$ 1,000,000 INDIANA STATE FINANCE AUTHORITY ROCKVILLE CORRECTIONAL D (LEASE REVENUE) 5.25% 07/01/2019 $ 1,139,540
1,900,000 JASPER COUNTY IN (INDUSTRIAL, NATL-RE INSURED) 5.60 11/01/2016 2,054,489
980,000 JEFFERSONVILLE IN BUILDING CORPORATION FIRST MORTGAGE SERIES C (LEASE REVENUE) 4.25 08/15/2017 999,277
1,000,000 MT. VERNON IN SCHOOL BUILDING CORPORATION FIRST MORTGAGE SERIES 2007
(LEASE REVENUE, AGM INSURED) 5.00 07/15/2019 1,094,470
270,000 PORTAGE REDEVELOPMENT DISTRICT (TAX/ALLOCATION REVENUE, CIFG INSURED) 4.00 01/15/2015 277,781
350,000 PORTAGE REDEVELOPMENT DISTRICT (TAX/ALLOCATION REVENUE, CIFG INSURED) 4.00 01/15/2016 351,113
360,000 PORTAGE REDEVELOPMENT DISTRICT (TAX/ALLOCATION REVENUE, CIFG INSURED) 4.00 07/15/2016 358,682
13,077,873
-------------
IOWA: 1.17%
200,000 DES MOINES IA HOSPITAL REVENUE REFUNDED IOWA HEALTH SYSTEMS
(HCFR, AMBAC INSURED) 5.25 08/15/2015 212,388
2,500,000 IOWA FINANCE AUTHORITY INTERSTATE POWER (INDUSTRIAL REVENUE, FGIC INSURED) 5.00 07/01/2014 2,697,650
5,285,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION (STUDENT LOAN REVENUE) 5.25 12/01/2018 5,384,992
385,000 TOBACCO SETTLEMENT AUTHORITY IA ASSET-BACKED SERIES B
(TOBACCO SETTLEMENT FUNDED REVENUE) 5.50 06/01/2012 412,362
8,707,392
-------------
KANSAS: 1.52%
6,200,000 BURLINGTON KS ENVIRONMENTAL KANSAS CITY POWER & LIGHT
(INDUSTRIAL REVENUE, XLCA INSURED)+/-ss 5.25 12/01/2023 6,608,828
80,000 KANSAS DEVELOPMENT FINANCE AUTHORITY HEALTH FACILITIES HARTFORD SERIES B 1
(HCFR,ACA INSURED) 6.13 04/01/2012 81,531
280,000 OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT (TAX/ALLOCATION
REVENUE) 5.00 09/01/2013 261,878
305,000 OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT (TAX/ALLOCATION
REVENUE) 5.00 09/01/2014 279,334
235,000 OVERLAND PARK KS DEVELOPMENT CORPORATION FIRST TIER CONVENTION
(OTHER REVENUE, AMBAC INSURED) 4.00 01/01/2011 238,041
300,000 OVERLAND PARK KS DEVELOPMENT CORPORATION SECOND TIER CONVENTION SERIES B
(OTHER REVENUE, AMBAC INSURED) 4.00 01/01/2011 303,882
1,445,000 WYANDOTTE COUNTY KANSAS CITY UNITED GOVERNMENT TRANSPORTATION DEVELOPMENT
DISTRICT LEGENDS VILLAGE WEST PROJECT (OTHER REVENUE) 4.88 10/01/2028 1,057,552
2,500,000 WYANDOTTE COUNTY KS CITY UNIFIED GOVERNMENT REFERENDUM SALES TAX SECOND LIEN
AREA B (SALES TAX REVENUE) 5.00 12/01/2020 2,520,275
11,351,321
-------------
KENTUCKY: 2.12%
6,175,000 KENTUCKY ASSET LIABILITY COMMISSION GENERAL FUND REVENUE PROJECT SERIES B
(OTHER REVENUE, NATL-RE FGIC INSURED)+/-ss 0.74 11/01/2025 4,737,769
1,265,000 KENTUCKY STATE PROPERTY & BUILDINGS COMMISSION SERIES A PROJECT # 95
(GENERAL FUND REVENUE) 5.00 08/01/2019 1,406,351
9,479,274 UNIVERSITY KY COP++ 4.45 06/18/2018 9,611,889
15,756,009
-------------
LOUISIANA: 3.13%
500,000 JEFFERSON PARISH LA HOSPITAL SERVICE DISTRICT # 001 WEST JEFFERSON MEDICAL
CENTER
SERIES A (HCFR, AGM INSURED) 5.25 01/01/2013 503,525
2,540,000 LAFOURCHE PARISH LA HOUSING AUTHORITY CITY PLACE II PROJECT
(LOCAL OR GTD HOUSING REVENUE, GNMA) 6.70 01/20/2040 2,698,547
1,045,000 LOUISIANA LOCAL GOVERNMENT ENVIRONMENTAL FACILITIES & COMMUNITY DEVELOPMENT
AUTHORITY (LOCAL OR GTD HOUSING REVENUE, FNMA INSURED)+/-ss 4.25 04/15/2039 1,061,208
200,000 LOUISIANA PUBLIC FACILITIES AUTHORITY ARCHDIOCESE OF NEW ORLEANS PROJECT
(OTHER REVENUE, CFIG INSURED) 5.00 07/01/2014 213,128
100,000 LOUISIANA PUBLIC FACILITIES AUTHORITY ARCHDIOCESE OF NEW ORLEANS PROJECT
(OTHER REVENUE, CFIG INSURED) 5.00 07/01/2016 104,452
24 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
LOUISIANA (continued)
$ 150,000 LOUISIANA PUBLIC FACILITIES AUTHORITY ARCHDIOCESE OF NEW ORLEANS PROJECT
(OTHER REVENUE, CFIG INSURED) 5.00% 07/01/2017 $ 154,980
505,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(COLLEGE & UNIVERSITY REVENUE, CIFG INSURED) 4.00 07/01/2015 509,373
170,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(COLLEGE & UNIVERSITY REVENUE, CIFG INSURED) 4.13 07/01/2016 168,157
55,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(COLLEGE & UNIVERSITY REVENUE, CIFG INSURED) 4.25 07/01/2017 53,722
1,250,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(COLLEGE & UNIVERSITY REVENUE, CIFG INSURED) 5.00 07/01/2022 1,235,138
740,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(LOCAL OR GTD HOUSING REVENUE, CIFG INSURED) 5.00 07/01/2016 726,732
1,465,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(LOCAL OR GTD HOUSING REVENUE, CIFG INSURED) 5.00 07/01/2019 1,373,188
500,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(LOCAL OR GTD HOUSING REVENUE, CIFG INSURED) 5.00 07/01/2020 463,300
100,000 LOUISIANA PUBLIC FACILITIES AUTHORITY BLACK & GOLD FACILITIES PROJECT SERIES A
(LOCAL OR GTD HOUSING REVENUE, CIFG INSURED) 5.00 07/01/2022 91,293
100,000 LOUISIANA PUBLIC FACILITIES AUTHORITY GRAMBLING UNIVERSITY PROJECT BLACK &
GOLD FACILITIES PROJECT SERIES A (LOCAL OR GTD HOUSING REVENUE, CIFG INSURED) 5.00 07/01/2014 101,406
1,945,000 LOUISIANA STATE CITIZENS PROPERTY INSURANCE CORPORATION SERIES B
(OTHER REVENUE, AMBAC INSURED) 5.25 06/01/2013 2,066,796
1,000,000 LOUISIANA STATE CORRECTIONAL FACILITIES CORPORATION (LEASE REVENUE, AMBAC
INSURED) 5.00 09/01/2019 1,084,480
800,000 LOUISIANA STATE SERIES A (FUEL SALES TAX REVENUE, AMBAC INSURED) 5.38 06/01/2016 863,536
1,350,000 NEW ORLEANS LA (PROPERTY TAX REVENUE, FGIC INSURED) 5.50 12/01/2016 1,444,406
690,000 NEW ORLEANS LA (SEWER REVENUE, ASSURED GUARANTY) 5.50 06/01/2016 721,878
590,000 NEW ORLEANS LA (SEWER REVENUE, ASSURED GUARANTY) 5.63 06/01/2017 616,043
740,000 NEW ORLEANS LA (SEWER REVENUE, FGIC INSURED) 5.50 06/01/2020 692,551
925,000 NEW ORLEANS LA (SEWER REVENUE, NATL-RE INSURED) 5.00 06/01/2012 933,760
530,000 NEW ORLEANS LA (SEWER REVENUE, NATL-RE INSURED) 5.00 06/01/2016 513,305
1,365,000 NEW ORLEANS LA PUBLIC IMPROVEMENT SERIES A (PROPERTY TAX REVENUE, RADIAN
INSURED) 5.00 12/01/2016 1,449,343
1,345,000 NEW ORLEANS LA PUBLIC IMPROVEMENT SERIES A (PROPERTY TAX REVENUE, RADIAN
INSURED) 5.00 12/01/2017 1,415,491
1,000,000 PORT NEW ORLEANS LA BOARD COMMERCE SPECIAL PROJECT CG RAILWAY INCORPORATED
(AIRPORT & MARINA REVENUE, NATL-RE INSURED) 5.25 08/15/2013 1,079,960
1,000,000 WEST BATON ROUGE PARISH LA INDUSTRIAL DISTRICT # 3 DOW CHEMICAL
(INDUSTRIAL REVENUE)+/-ss 5.00 10/01/2021 1,004,440
23,344,138
-------------
MARYLAND: 0.27%
830,000 MARYLAND STATE (PROPERTY TAX REVENUE) 5.25 03/01/2018 986,231
1,000,000 MARYLAND STATE HEALTH & HIGHER EDUCATIONAL FACILITIES AUTHORITY (HCFR) 5.00 07/01/2018 1,049,400
2,035,631
-------------
MASSACHUSETTS: 1.06%
1,050,000 MASSACHUSETTS DEVELOPMENT FINANCE AGENCY SABIS INTERNATIONAL (OTHER REVENUE) 6.50 04/15/2019 1,096,725
615,000 MASSACHUSETTS DEVELOPMENT FINANCE AGENCY SABIS INTERNATIONAL (OTHER REVENUE) 6.55 04/15/2020 642,011
2,650,000 MASSACHUSETTS STATE SERIES A (OTHER REVENUE)+/-ss 0.65 11/01/2018 2,438,689
4,175,000 MASSACHUSETTS STATE SERIES C (OTHER REVENUE, AGM INSURED)+/-ss 0.70 11/01/2019 3,689,615
7,867,040
-------------
MICHIGAN: 5.10%
4,235,000 DETROIT MI CAPITAL IMPROVEMENT LIMITED TAX SERIES A-1 (PROPERTY TAX REVENUE) 5.00 04/01/2015 3,900,901
1,405,000 DETROIT MI SERIES A 1 (PROPERTY TAX REVENUE, NATL-RE INSURED) 5.00 04/01/2019 1,161,991
Wells Fargo Advantage Municipal Income Funds 25
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
MICHIGAN (continued)
$ 3,130,000 DETROIT MI SERIES A 1 (SEWER REVENUE, AGM INSURED) 5.50% 07/01/2017 $ 3,360,337
1,000,000 DETROIT MI WATER SUPPLY SYSTEM SERIES A (WATER REVENUE, AGM INSURED) 5.00 07/01/2015 1,063,650
660,000 FLINT MI INTERNATIONAL ACADEMY (OTHER REVENUE) 5.00 10/01/2017 604,540
2,270,000 FLINT MI INTERNATIONAL ACADEMY (OTHER REVENUE) 5.38 10/01/2022 1,982,800
435,000 FLINT MI INTERNATIONAL ACADEMY (PUBLIC SCHOOL REVENUE) 5.50 10/01/2027 366,105
570,000 KENT COUNTY MI (PROPERTY TAX REVENUE) 5.00 01/01/2018 641,911
1,000,000 KENT COUNTY MI (PROPERTY TAX REVENUE) 5.00 01/01/2025 1,077,310
2,500,000 KENT HOSPITAL FINANCE AUTHORITY SERIES A (HCFR)+/-ss 4.25 01/15/2047 2,576,875
6,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY STUDENT AID NOTES SERIES D (OTHER REVENUE) 9.50 08/20/2010 5,991,600
1,555,000 MICHIGAN PUBLIC EDUCATIONAL FACILITIES AUTHORITY LIMITED OBLIGATION CHANDLER
PARK ACADEMY (OTHER REVENUE) 5.60 11/01/2018 1,556,400
1,140,000 MICHIGAN PUBLIC EDUCATIONAL FACILITIES AUTHORITY LIMITED OBLIGATION NATAKI
TALIBAH
(PRIVATE SCHOOL REVENUE) 6.25 10/01/2023 958,512
2,750,000 MICHIGAN STATE (FUEL SALES TAX REVENUE) 5.25 05/15/2017 3,066,470
345,000 MICHIGAN STATE ENVIRONMENTAL PROTECTION PROGRAM (OTHER REVENUE) 6.25 11/01/2012 369,240
2,000,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY (HCFR)+/-ss 6.00 12/01/2034 2,314,600
2,000,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY HOSPITAL DAUGHTERS CHARITY (HCFR) 5.25 11/01/2015 2,138,240
2,500,000 MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY LIMITED GREENWOOD VILLA PROJECT
(LOCAL OR GTD HOUSING REVENUE, AGM INSURED) 4.75 09/15/2017 2,667,325
1,500,000 WESTERN TOWNSHIPS MI UTILITIES AUTHORITY (PROPERTY TAX REVENUE) 5.00 01/01/2017 1,660,200
500,000 WYANDOTTE MI SERIES A (ELECTRIC REVENUE, ASSURED GUARANTY) 4.00 10/01/2016 520,695
37,979,702
-------------
MINNESOTA: 1.67%
3,800,000 BECKER MN PCR NORTHERN STATES POWER SERIES B (IDR)+/-ss 8.50 09/01/2019 4,282,220
1,065,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SERIES A
(AIRPORT & MARINA REVENUE) 4.00 01/01/2019 1,085,991
4,555,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SUBSERIES B
(AIRPORT REVENUE, NATL-RE & FGIC INSURED) 5.00 01/01/2018 4,937,711
155,000 MINNEAPOLIS MN ST. MARY'S HOSPITAL & REHABILITATION (HCFR) 10.00 06/01/2013 180,330
1,365,000 NORTHERN MUNICIPAL POWER AGENCY MN SERIES A (ELECTRIC REVENUE, ASSURED
GUARANTY) 5.00 01/01/2016 1,518,644
500,000 ST. PAUL MN HOUSING & REDEVELOPMENT AUTHORITY HMONG ACADEMY PROJECT SERIES A
(PRIVATE SCHOOL REVENUE) 5.50 09/01/2018 460,365
12,465,261
-------------
MISSISSIPPI: 0.07%
505,000 MISSISSIPPI DEVELOPMENT BANK SPECIAL OBLIGATION MUNICIPAL ENERGY AGENCY POWER
SUPPLY PROJECT (ELECTRIC REVENUE, XLCA INSURED) 5.00 03/01/2013 529,038
-------------
MISSOURI: 1.04%
1,500,000 CHESTERFIELD VALLEY TRANSPORTATION DEVELOPMENT DISTRICT MO
(SALES TAX REVENUE, CIFG INSURED) 4.00 04/15/2026 1,511,145
1,520,000 FENTON MO GRAVOIS BLUFFS REDEVELOPMENT PROJECT (TAX/ALLOCATION REVENUE) 4.50 04/01/2021 1,470,722
3,000,000 KANSAS CITY MO SPECIAL OBLIGATION SERIES E (OTHER REVENUE)## 4.93 02/01/2018 2,004,030
415,000 LAKE OF THE OZARKS MO COMMUNITY BRIDGE CORPORATION (TOLL ROAD REVENUE) 5.25 12/01/2014 375,260
1,310,000 MARYLAND HEIGHTS MO SOUTH HEIGHTS REDEVELOPMENT PROJECT A
(TAX/ALLOCATION REVENUE) 5.50 09/01/2018 1,238,199
100,000 OZARK MO COP COMMUNITY CENTER PROJECT (LEASE REVENUE) 4.50 09/01/2011 103,003
145,000 OZARK MO COP COMMUNITY CENTER PROJECT (LEASE REVENUE) 4.50 09/01/2013 151,825
170,000 OZARK MO COP COMMUNITY CENTER PROJECT (LEASE REVENUE) 4.50 09/01/2014 177,075
225,000 OZARK MO COP COMMUNITY CENTER PROJECT (LEASE REVENUE) 4.55 09/01/2016 226,775
415,000 ST. LOUIS MO LAMBERT ST. LOUIS INTERNATIONAL (AIRPORT & MARINA REVENUE) 6.00 07/01/2019 450,989
7,709,023
-------------
26 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ----------- ------------------------------------------------------------------------------ -------- ---------- -------------
NEBRASKA: 0.12%
$ 500,000 MUNICIPAL ENERGY AGENCY OF NEBRASKA SERIES A (ELECTRIC REVENUE, BHAC INSURED) 5.00% 04/01/2019 $ 563,645
325,000 O'NEILL NE ST. ANTHONY'S PROJECT (HCFR) 6.25 09/01/2012 342,040
905,685
-------------
NEVADA: 4.26%
5,000,000 CLARK COUNTY NV AIRPORT REVENUE SERIES C (AIRPORT & MARINA REVENUE, AGM
INSURED) 5.00 07/01/2023 5,221,000
3,500,000 CLARK COUNTY NV LAS VEGAS MCCARRAN INTERNATIONAL A 2
(AIRPORT & MARINA REVENUE, AMBAC INSURED) 5.00 07/01/2027 3,605,875
3,000,000 CLARK COUNTY NV LAS VEGAS MCCARRAN INTERNATIONAL SERIES A
(AIRPORT & MARINA REVENUE) 5.00 07/01/2016 3,318,360
2,000,000 CLARK COUNTY NV PUBLIC SAFETY SERIES A (PROPERTY TAX REVENUE, AGM INSURED) 5.00 06/01/2017 2,147,380
1,850,000 CLARK COUNTY NV SCHOOL DISTRICT (PROPERTY TAX REVENUE, AGM INSURED) 5.50 06/15/2014 2,109,500
2,950,000 CLARK COUNTY NV SCHOOL DISTRICT SERIES A (PROPERTY TAX REVENUE) 5.00 06/15/2017 3,257,479
1,000,000 CLARK COUNTY NV SCHOOL DISTRICT SERIES A (PROPERTY TAX REVENUE) 5.00 06/15/2019 1,084,260
2,500,000 CLARK COUNTY NV SCHOOL DISTRICT SERIES B (PROPERTY TAX REVENUE, AMBAC
INSURED) 5.00 06/15/2019 2,699,200
1,830,000 CLARK COUNTY NV SERIES B (PROPERTY TAX REVENUE, AGM INSURED) 5.00 06/01/2014 2,051,467
2,380,000 CLARK COUNTY NV SERIES B (PROPERTY TAX REVENUE, AGM INSURED) 5.00 06/01/2019 2,616,096
920,000 CLARK COUNTY NV SPECIAL IMPROVEMENT DISTRICT # 121A
(STATE & LOCAL GOVERNMENTS, AMBAC INSURED) 4.25 12/01/2013 927,572
1,225,000 RENO NV WASHOE MEDICAL CENTER SERIES A (HCFR, AMBAC INSURED) 5.50 06/01/2016 1,327,030
1,330,000 RENO-SPARKS INDIAN COLONY NV GOVERNMENTAL
(STATE & LOCAL GOVERNMENTS, US BANK NA LOC) 5.00 06/01/2021 1,336,464
31,701,683
-------------
NEW HAMPSHIRE: 0.14%
1,000,000 NEW HAMPSHIRE HEFA EXETER PROJECT (HCFR) 6.00 10/01/2016 1,042,050
-------------
NEW JERSEY: 1.92%
2,000,000 GLOUCESTER COUNTY NJ IMPROVEMENT AUTHORITY WASTE MANAGEMENT INCORPORATED
PROJECT SERIES A (RESOURCE RECOVERY REVENUE)+/-ss 2.63 12/01/2029 2,001,660
1,000,000 NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY CIGARETTE TAX
(TOBACCO & LIQUOR TAXES REVENUE, FGIC INSURED) 5.00 06/15/2012 1,026,920
2,385,000 NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY MOTOR VEHICLE SERIES A
(OTHER REVENUE, NATL-RE INSURED) 5.25 07/01/2016 2,538,999
1,755,000 NEW JERSEY SPORTS & EXPOSITION AUTHORITY (RECREATIONAL FACILITIES REVENUE,
NATL-RE INSURED) 5.50 03/01/2022 1,966,407
3,400,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A
(COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2027 3,555,754
2,000,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A (OTHER
REVENUE) 5.00 06/01/2017 2,164,680
1,010,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A (OTHER
REVENUE) 5.00 06/01/2019 1,079,326
14,333,746
-------------
NEW MEXICO: 0.17%
1,340,000 OTERO COUNTY NM JAIL PROJECT (OTHER REVENUE) 5.50 04/01/2013 1,301,274
-------------
NEW YORK: 2.99%
265,000 BROOKHAVEN NY IDAG (HOUSING REVENUE, NORTH FORK BANK LOC)+/-ss 4.25 11/01/2037 265,021
615,000 GENESEE COUNTY NY IDA UNITED MEMORIAL MEDICAL CENTER PROJECT (HCFR) 4.75 12/01/2014 611,255
2,725,000 METROPOLITAN NY TRANSPORTATION AUTHORITY SERIES B-2
(OTHER REVENUE, AGM INSURED)+/-ss(a)(m)(n) 0.35 11/01/2022 2,637,059
30,000 NASSAU COUNTY NY IDA SPECIAL NEEDS POOLED B 1 (IDR) 6.88 07/01/2010 30,996
275,000 NEW YORK CITY NY IDAG 2006 PROJECT SAMARITAN AIDS SERVICES
(OTHER REVENUE, CITIBANK NA LOC) 4.50 11/01/2015 308,352
2,875,000 NEW YORK CITY NY TRANSITIONAL FINANCE AUTHORITY FUTURE TAX SERIES A
(INCOME TAX REVENUE) 5.00 05/01/2023 3,155,658
Wells Fargo Advantage Municipal Income Funds 27
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
NEW YORK (continued)
$ 1,600,000 NEW YORK CITY NY TRANSITIONAL FINANCE AUTHORITY FUTURE TAX SERIES A
(INCOME TAX REVENUE) 5.00% 05/01/2038 $ 1,659,088
340,000 NEW YORK STATE DORMITORY AUTHORITY HOSPITAL SERIES A (HCFR, FHA INSURED) 6.00 08/15/2015 367,992
880,000 NEW YORK STATE DORMITORY AUTHORITY MONTEFIORE MEDICAL CENTER-FHA INSURED
(COLLEGE & UNIVERSITY REVENUE, FGIC INSURED) 5.00 02/01/2014 963,838
2,000,000 NEW YORK STATE DORMITORY AUTHORITY MOUNT SINAI SCHOOL OF MEDICINE
(COLLEGE & UNIVERSITY REVENUE) 5.50 07/01/2022 2,112,060
3,665,000 NEW YORK STATE DORMITORY AUTHORITY NORTH SHORE SERIES B (HCFR)+/-ss 0.92 05/01/2018 3,130,093
1,500,000 NEW YORK STATE DORMITORY AUTHORITY REVENUE (HCFR REVENUE, FHA INSURED) 4.50 08/01/2018 1,549,365
3,000,000 TOBACCO SETTLEMENT FINANCING CORPORATION NY SERIES A (TOBACCO SETTLEMENT
FUNDED) 5.50 06/01/2018 3,172,140
100,000 TOBACCO SETTLEMENT FINANCING CORPORATION NY SERIES B
(TOBACCO SETTLEMENT FUNDED, XLCA INSURED) 4.00 06/01/2012 106,370
1,000,000 TOBACCO SETTLEMENT FINANCING CORPORATION NY SERIES B1C
(TOBACCO SETTLEMENT FUNDED) 5.50 06/01/2019 1,068,840
30,000 TRIBOROUGH NY BRIDGE & TUNNEL AUTHORITY SERIES C
(TOLL ROAD REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.27 01/01/2032 30,000
1,000,000 UPPER MOHAWK VALLEY NY REGIONAL WATER FINANCE AUTHORITY SERIES A
(WATER REVENUE, ASSURED GUARANTY) 5.00 04/01/2018 1,098,210
22,266,337
--------------
NORTH CAROLINA: 0.60%
140,000 CHARLOTTE NC COP SERIES E (LEASE APPROPRIATION REVENUE) 4.00 06/01/2017 149,428
2,000,000 FORSYTH COUNTY NC COP PUBLIC FACILITIES EQUIPMENT PROJECT
(LEASE APPROPRIATION REVENUE) 5.00 10/01/2016 2,259,340
1,600,000 NASH NC HEALTH CARE SYSTEM (HCFR, AGM INSURED) 5.00 11/01/2014 1,724,688
320,000 NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY SERIES B
(ELECTRIC, POWER & LIGHT REVENUE, FGIC INSURED) 5.50 01/01/2017 320,429
4,453,885
--------------
NORTH DAKOTA: 0.11%
780,000 MERCER COUNTY ND ANTELOPE VALLEY STATION
(ELECTRIC, POWER & LIGHT REVENUE, AMBAC INSURED) 7.20 06/30/2013 855,091
--------------
OHIO: 1.89%
500,000 AKRON BATH COPLEY OH JOINT TOWNSHIP AKRON GENERAL HEALTH SYSTEMS SERIES A
(HCFR) 5.00 01/01/2014 516,820
4,000,000 AMERICAN MUNICIPAL POWER OHIO INCORPORATED SERIES A
(ELECTRIC, POWER & LIGHT REVENUE) 5.00 02/01/2012 4,251,560
1,445,000 CLEVELAND OH MUNICIPAL SCHOOL DISTRICT (PROPERTY TAX REVENUE, NATL-RE
INSURED) 5.00 12/01/2017 1,524,114
855,000 FRANKLIN COUNTY OH CHILDREN'S HOSPITAL PROJECT (HCFR) 10.38 06/01/2013 953,376
1,040,000 OHIO STATE WATER DEVELOPMENT AUTHORITY FRESH WATER (WATER REVENUE) 5.50 06/01/2021 1,248,572
3,000,000 OHIO STATE WATER DEVELOPMENT AUTHORITY SERIES B (WATER REVENUE) 5.00 06/01/2016 3,449,880
1,175,000 OHIO STATE WATER DEVELOPMENT AUTHORITY WATER POLLUTION CONTROL (WATER
REVENUE) 4.00 06/01/2015 1,294,733
950,000 RIVERSOUTH OH AUTHORITY LAZARUS BUILDING REDEVELOPMENT SERIES A (LEASE
REVENUE) 5.75 12/01/2027 853,860
14,092,915
--------------
OKLAHOMA: 0.67%
400,000 MCCLAIN COUNTY OK ECONOMIC DEVELOPMENT AUTHORITY BLANCHARD PUBLIC SCHOOLS
PROJECT (LEASE REVENUE) 4.50 09/01/2016 417,916
350,000 MCCLAIN COUNTY OK ECONOMIC DEVELOPMENT AUTHORITY NEWCASTLE PUBLIC SCHOOLS
PROJECT (LEASE REVENUE) 5.00 09/01/2012 371,123
1,500,000 MCGEE CREEK AUTHORITY OK WATER REVENUE (WATER REVENUE, NATL-RE INSURED) 6.00 01/01/2023 1,615,515
2,500,000 OKMULGEE OK MUNICIPAL AUTHORITY SERIES A (UTILITY/TAX REVENUE) 5.00 12/01/2024 2,617,075
5,021,629
--------------
28 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
PENNSYLVANIA: 3.01%
$ 2,000,000 ALLEGHENY COUNTY PA IDA ENVIRONMENTAL (IDR) 6.50% 05/01/2017 $ 2,043,560
3,000,000 ALLEGHENY COUNTY PA SERIES C-59B (PROPERTY TAX REVENUE, AGM INSURED)+/-ss 0.74 11/01/2026 2,471,250
1,000,000 BEAVER COUNTY IDA PCR FIRSTENERGY SERIES B (IDR)+/-ss 3.00 10/01/2047 1,005,810
880,000 CHESTER COUNTY PA AVON GROVE CHARTER SCHOOL PROJECT SERIES A (OTHER
REVENUE) 5.65 12/15/2017 820,204
520,000 CHESTER COUNTY PA IDA AVON GROVE CHARTER SCHOOL PROJECT SERIES A (OTHER
REVENUE) 6.38 12/15/2037 436,930
350,000 CHESTER COUNTY PA IDA RENAISSANCE ACADEMY PROJECT SERIES A
(PRIVATE SCHOOLS REVENUE) 5.63 10/01/2015 330,971
1,785,000 DELAWARE COUNTY PA IDA RESOURCE RECOVERY FACILITY SERIES A
(RESOURCE RECOVERY REVENUE) 6.10 07/01/2013 1,785,411
1,000,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES D
(OTHER REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2020 1,000,000
1,500,000 HARRISBURG PA AUTHORITY RESOURCE RECOVERY FACILITY CAPITAL APPRECIATION
LIMITED OBLIGATION SERIES C (RESOURCE RECOVERY REVENUE)## 4.43 12/15/2010 1,438,320
565,000 MILLCREEK RICHLAND JOINT AUTHORITY PA SERIES B (SEWER REVENUE, RADIAN
INSURED) 4.70 08/01/2017 552,434
1,500,000 PENNSYLVANIA EDFA WASTE MANAGEMENT PROJECT (OTHER REVENUE)+/-ss 2.63 12/01/2033 1,497,465
985,000 PENNSYLVANIA STATE DEPARTMENT OF GENERAL SERVICES (LEASE REVENUE, AGM
INSURED) 5.25 05/01/2016 1,055,260
5,000,000 PENNSYLVANIA STATE TURNPIKE COMMISSION DEPARTMENT OF GENERAL SERVICES
SERIES C (TOLL ROAD REVENUE)+/-ss 1.29 12/01/2014 5,000,000
1,210,000 PHILADELPHIA AUTHORITY FOR INDUSTRIAL DEVELOPMENT FIRST PHILADELPHIA
CHARTER HIGH SERIES A (IDR) 5.30 08/15/2017 1,176,689
1,295,000 PHILADELPHIA PA EIGHTEENTH SERIES AGC (UTILITIES REVENUE, ASSURED GUARANTY) 5.25 08/01/2016 1,419,333
290,000 ROBINSON TOWNSHIP PA MUNICIPAL AUTHORITY (WATER & SEWER REVENUE) 6.90 05/15/2018 346,710
22,380,347
--------------
PUERTO RICO: 1.70%
2,000,000 PUERTO RICO HFA SUB-CAPITAL FUND MODERNIZATION (HOUSING REVENUE) 5.50 12/01/2017 2,192,680
10,000,000 PUERTO RICO SALES TAX FINANCING CORPORATION FIRST SUBSERIES A (SALES TAX
REVENUE)+/-ss 5.00 08/01/2039 10,484,600
12,677,280
--------------
RHODE ISLAND: 0.30%
2,060,000 RHODE ISLAND STATE HEALTH & EDUCATIONAL BUILDING CORPORATION PROVIDENCE
PUBLIC SCHOOL FINANCING SERIES A (OTHER REVENUE, AGM INSURED) 5.00 05/15/2015 2,250,859
--------------
SOUTH CAROLINA: 1.51%
2,000,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 11.88 01/01/2038 86,400
1,750,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 11.98 01/01/2037 84,875
500,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 12.30 01/01/2036 26,150
2,000,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 12.71 01/01/2035 108,000
100,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 13.03 01/01/2033 6,450
1,130,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 13.34 01/01/2032 77,970
1,000,000 KERSHAW COUNTY SC PUBLIC SCHOOLS FOUNDATION INSTALLMENT POWER REVENUE
(LEASE REVENUE, CIFG INSURED) 5.00 12/01/2020 1,048,470
740,000 LEE COUNTY SC SCHOOL FACILITIES INCORPORATED SERIES 2006
(LEASE REVENUE, RADIAN INSURED) 6.00 12/01/2016 773,552
1,465,000 MCCORMICK COUNTY SC HEALTH CARE CENTER PROJECT PREREFUNDED (HCFR) 8.00 03/01/2019 1,786,289
500,000 PIEDMONT MUNICIPAL POWER AGENCY SC SERIES B
(ELECTRIC, POWER & LIGHT REVENUE, NATL-RE INSURED) 5.25 01/01/2011 501,355
1,990,000 SOUTH CAROLINA JOBS ECONOMIC DEVELOPMENT AUTHORITY PALMETTO HEALTH
(HCFR)+/-ss 0.99 08/01/2039 1,866,620
3,750,000 SOUTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY STUDENT LOAN SERIES I
(STUDENT LOAN REVENUE) 5.00 10/01/2024 3,769,838
Wells Fargo Advantage Municipal Income Funds 29
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
SOUTH CAROLINA (continued)
$ 1,090,000 TOBACCO SETTLEMENT REVENUE MANAGEMENT AUTHORITY SC (TOBACCO SETTLEMENT
FUNDED) 5.00% 06/01/2018 $ 1,091,755
11,227,724
--------------
SOUTH DAKOTA: 0.06%
500,000 LOWER BRULE SIOUX TRIBE SOUTH DAKOTA SERIES B (PROPERTY TAX REVENUE) 5.25 05/01/2015 439,875
--------------
TENNESSEE: 1.90%
2,000,000 ELIZABETHTON TN HEALTH & EDUCATIONAL DEVELOPMENT FACILITIES SERIES B
(HCFR, NATL-RE INSURED) 6.25 07/01/2015 2,182,080
1,250,000 LEWISBURG TN INDUSTRIAL DEVELOPMENT BOARD WASTE MANAGEMENT INCORPORATED
PROJECT (RESOURCE RECOVERY REVENUE)+/-ss 1.00 07/01/2012 1,250,213
1,000,000 SEVIER COUNTY TN PUBLIC BUILDING AUTHORITY LOCAL GOVERNMENT IMPROVEMENT
SERIES K 1 (OTHER REVENUE)+/-ss 0.48 06/01/2034 1,000,000
725,000 SHELBY COUNTY TN HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD LE BONHUER
CHILDREN'S MEDICAL CENTER SERIES D (HCFR, NATL-RE INSURED) 5.50 08/15/2019 846,923
4,150,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.00 09/01/2015 4,341,191
1,500,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.25 09/01/2017 1,535,430
1,115,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES C (UTILITY REVENUE) 5.00 02/01/2015 1,183,060
1,720,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES C (UTILITY REVENUE) 5.00 02/01/2016 1,798,587
14,137,484
--------------
TEXAS: 12.08%
6,000,000 ARLINGTON TX SPECIAL OBLIGATION DALLAS COWBOYS SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.00 08/15/2034 6,013,560
1,520,000 AUSTIN TX AIRPORT SYSTEM PRIOR LIEN (AIRPORT REVENUE, NALT-RE INSURED) 5.25 11/15/2017 1,587,123
1,750,000 AUSTIN TX INDEPENDENT SCHOOL DISTRICT (PROPERTY TAX REVENUE, PSF GTD
INSURED) 5.00 08/01/2016 2,022,983
1,580,000 BEXAR COUNTY TX FLOOD CONTROL SERIES A (PROPERTY TAX REVENUE) 5.00 06/15/2025 1,710,461
1,625,000 BEXAR COUNTY TX FLOOD CONTROL SERIES A (PROPERTY TAX REVENUE) 5.00 06/15/2026 1,758,510
3,500,000 DECATUR TX HOSPITAL AUTHORITY SERIES A (HCFR) 5.75 09/01/2029 4,119,955
1,640,000 EAGLE PASS TX INTERNATIONAL BRIDGES (OTHER REVENUE, AMBAC INSURED) 5.25 02/15/2014 1,726,444
1,185,000 EL PASO TX (PROPERTY TAX REVENUE) 5.00 08/15/2018 1,321,868
2,000,000 FRISCO TX SERIES A (SEWER REVENUE, AGM INSURED) 5.00 02/15/2017 2,143,800
1,000,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.25 10/01/2014 1,026,090
1,000,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.50 10/01/2016 1,064,770
6,750,000 GATEWAY PUBLIC FACILITIES CORPORATION STONEGATE VILLAS APARTMENTS PROJECT
(STATE & LOCAL GOVERNMENTS, FNMA INSURED)+/-ss 4.55 07/01/2034 7,302,015
1,560,000 HIDALGO COUNTY TX DRAINAGE DISTRICT (PROPERTY TAX REVENUE, ASSURED
GUARANTY) 5.00 09/01/2028 1,646,315
1,000,000 HOUSTON TX AIRPORT SERIES A (AIRPORT & MARINA REVENUE) 5.00 07/01/2025 1,050,850
775,000 HOUSTON TX AIRPORT SERIES A (AIRPORT & MARINA REVENUE) 5.00 07/01/2026 809,914
700,000 HOUSTON TX SERIES A (WATER & SEWER REVENUE, NATL-RE INSURED) 5.25 05/15/2023 738,451
1,035,000 LONE STAR COLLEGE SYSTEM MAINTENANCE (PROPERTY TAX REVENUE) 4.00 09/15/2017 1,103,124
1,005,000 LUBBOCK TX WATERWORKS SYSTEM SERIES A (PROPERTY TAX REVENUE, AGM INSURED) 5.00 02/15/2018 1,120,987
1,495,000 MIDTOWN REDEVELOPMENT AUTHORITY TEXAS
(TAX INCREMENTAL REVENUE, AMBAC INSURED) 5.00 01/01/2020 1,560,765
1,135,000 NORTH TEXAS HEALTH FACILITIES DEVELOPMENT CORPORATION TX UNITED REGIONAL
HEALTH CARE SYSTEM (HCFR, AGM INSURED) 5.00 09/01/2016 1,193,055
5,000,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER PUTTABLE SERIES L2 (TOLL ROAD
REVENUE)+/-ss 6.00 01/01/2038 5,530,250
4,100,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER SERIES E 3 (OTHER REVENUE)+/-ss 5.75 01/01/2038 4,583,595
1,035,000 SA ENERGY ACQUISITION PUBLIC FACILITY CORPORATION (UTILITY REVENUE) 5.25 08/01/2015 1,106,550
130,000 SACHSE TX (PROPERTY TAX REVENUE, ASSURED GUARANTY) 5.00 02/15/2025 139,325
9,825,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION I SENIER LIEN SERIES D
(NATURAL GAS REVENUE) 5.63 12/15/2017 10,520,414
735,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION I SERIES C (UTILITY
REVENUE)+/-ss 1.62 12/15/2026 504,945
5,930,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II BMA INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.71 09/15/2017 5,544,550
8,000,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II LIBOR INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.87 09/15/2017 7,402,000
30 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
TEXAS (continued)
$ 3,500,000 TEXAS PRIVATE ACTIVITY SURFACE TRANSPORTATION CORPORATION (TOLL ROAD
REVENUE) 7.50% 12/31/2031 $ 3,794,630
425,000 TEXAS STATE PFA (OTHER REVENUE) 5.00 12/01/2012 429,114
855,000 TEXAS STATE PFA CHARTER SCHOOL KIPP INCORPORATED SERIES A
(PRIVATE SCHOOL REVENUE, ACA INSURED) 4.50 02/15/2016 811,438
960,000 TEXAS STATE PFA COSMOS FOUNDATION SERIES A (OTHER REVENUE) 5.00 02/15/2018 870,720
825,000 TOMBALL TX INDEPENDENT SCHOOL DISTRICT (PROPERTY TAX REVENUE,
PERMANENT SCHOOL FUND GUARANTEED)## 2.50 02/15/2015 732,212
2,600,000 UNIVERSITY OF HOUSTON TX (COLLEGE & UNIVERSITY REVENUE) 5.00 02/15/2024 2,825,550
1,115,000 UNIVERSITY OF HOUSTON TX SERIES A (COLLEGE & UNIVERSITY REVENUE) 5.00 02/15/2018 1,259,560
2,095,000 UNIVERSITY OF NORTH TEXAS (COLLEGE & UNIVERSITY REVENUE) 5.25 04/15/2025 2,241,441
635,000 WACO TX HEALTH FACILITIES DEVELOPMENT CORPORATION HILLCREST SYSTEM PROJECT
SERIES A (HCFR, NATL-RE INSURED) 5.00 08/01/2016 687,216
90,004,550
--------------
UTAH: 0.84%
3,700,000 INTERMOUNTAIN POWER AGENCY UTAH SERIES A
(ELECTRIC POWER & LIGHT REVENUE, AGM INSURED) 5.00 07/01/2018 4,054,867
1,000,000 UTAH COUNTY UT LAKEVIEW ACADEMY SERIES A (OTHER REVENUE) 5.35 07/15/2017 918,300
500,000 UTAH COUNTY UT LINCOLN ACADEMY SERIES A (OTHER REVENUE)++ 5.45 06/15/2017 462,390
1,000,000 WEST VALLEY CITY UT MONTICELLO ACADEMY (PRIVATE SCHOOL REVENUE)++ 6.38 06/01/2037 851,020
6,286,577
--------------
VIRGIN ISLANDS: 0.07%
500,000 VIRGIN ISLANDS MATCHING FUND LOAN DIAGO SERIES A (OTHER REVENUE) 6.00 10/01/2014 520,435
--------------
VIRGINIA: 0.89%
1,000,000 CHESAPEAKE VA HOSPITAL AUTHORITY FACILITIES GENERAL HOSPITAL SERIES A
(HCFR) 5.25 07/01/2017 1,059,380
2,000,000 CHESTERFIELD COUNTY VA IDA (IDR)+/-ss 5.88 06/01/2017 2,076,160
1,800,000 MARQUIS CDA VA (OTHER REVENUE) 5.63 09/01/2018 1,456,326
750,000 REYNOLDS CROSSING CDA REYNOLDS CROSSING PROJECT (SPECIAL ASSESSMENT
REVENUE) 5.10 03/01/2021 694,650
55,000 VIRGINIA COLLEGE BUILDING AUTHORITY (COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2013 56,880
210,000 VIRGINIA COLLEGE BUILDING AUTHORITY (COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2015 212,373
1,100,000 WATKINS CENTRE CDA VA (SPECIAL ASSESSMENT REVENUE) 5.40 03/01/2020 1,038,213
6,593,982
--------------
WASHINGTON: 2.05%
1,410,000 GOAT HILL PROPERTIES GOVERNMENT OFFICE BUILDING PROJECT
(LEASE REVENUE, NATL-RE INSURED) 5.00 12/01/2021 1,480,415
695,000 GRANT COUNTY PUBLIC UTILITY DISTRICT # 2 PRIEST RAPIDS SERIES A
(ELECTRIC, POWER & LIGHT REVENUE, FGIC INSURED) 5.00 01/01/2023 731,752
1,000,000 KING COUNTY WA SERIES A (PROPERTY TAX REVENUE) 4.00 12/01/2017 1,085,250
2,225,000 QUINAULT INDIAN NATION WA QUINAULT BEACH SERIES A (OTHER REVENUE, ACA
INSURED) 5.80 12/01/2015 1,925,226
140,000 SNOHOMISH COUNTY WA PUBLIC HOSPITAL DISTRICT #3 SERIES A (PROPERTY TAX
REVENUE) 6.00 06/01/2010 140,021
1,480,000 TES PROPERTIES WASHINGTON (LEASE REVENUE) 5.00 12/01/2024 1,552,461
1,400,000 TES PROPERTIES WASHINGTON (LEASE REVENUE) 5.50 12/01/2029 1,485,470
500,000 TOBACCO SETTLEMENT AUTHORITY WASHINGTON ASSET-BACKED
(TOBACCO SETTLEMENT FUNDED REVENUE) 5.50 06/01/2012 517,330
3,355,000 TOBACCO SETTLEMENT AUTHORITY WASHINGTON ASSET-BACKED
(TOBACCO SETTLEMENT FUNDED REVENUE) 6.50 06/01/2026 3,374,291
800,000 WASHINGTON STATE HIGHER EDUCATIONAL FACILITIES AUTHORITY PACIFIC LUTHERAN
UNIVERSITY (COLLEGE & UNIVERSITY REVENUE, RADIAN INSURED) 5.00 11/01/2013 827,840
1,055,000 WASHINGTON STATE HIGHER EDUCATIONAL FACILITIES AUTHORITY PACIFIC LUTHERAN
UNIVERSITY (COLLEGE & UNIVERSITY REVENUE, RADIAN INSURED) 5.00 11/01/2014 1,077,166
1,010,000 WASHINGTON STATE HIGHER EDUCATIONAL FACILITIES AUTHORITY WHITWORTH
UNIVERSITY PROJECT (COLLEGE & UNIVERSITY) 5.00 10/01/2015 1,060,833
15,258,055
--------------
Wells Fargo Advantage Municipal Income Funds 31
Portfolio of Investments--December 31, 2009 (Unaudited)
INTERMEDIATE TAX/AMT-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
WEST VIRGINIA: 0.45%
$ 2,000,000 WEST VIRGINIA APPALACHIAN POWER COMPANY AMOS SERIES C (ELECTRIC
REVENUE)+/-ss 4.85% 05/01/2019 $ 2,098,800
1,100,000 WEST VIRGINIA SCHOOL BUILDING AUTHORITY (OTHER REVENUE) 5.25 07/01/2020 1,219,999
3,318,799
--------------
WISCONSIN: 1.36%
1,620,000 KENOSHA WI USD 001 SERIES A (PROPERTY TAX REVENUE) 4.50 04/01/2015 1,748,434
75,000 ST. CROIX FALLS WI CDA (LEASE REVENUE) 4.40 12/01/2010 76,596
890,000 WISCONSIN HEFA BELL TOWER RESIDENCE PROJECT (HCFR) 4.75 07/01/2015 948,891
20,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY SERIES E (HOUSING
REVENUE) 4.00 05/01/2013 21,072
210,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY SERIES E (HOUSING
REVENUE) 4.15 05/01/2015 222,266
4,500,000 WISCONSIN STATE HEFA AURORA HEALTH CARE INCORPORATED B (HCFR)+/-ss 5.13 08/15/2027 4,627,620
2,650,000 WISCONSIN STATE HEFA SERIES M (HCFR, NATL-RE INSURED)+/-ss(a)(m)(n) 0.72 06/01/2019 2,477,750
10,122,629
--------------
TOTAL MUNICIPAL BONDS & NOTES (COST $725,617,912) 734,984,022
--------------
SHARES YIELD
- ------------ --------
SHORT-TERM INVESTMENTS: 1.39%
MUTUAL FUNDS: 1.39%
10,403,145 WELLS FARGO ADVANTAGE NATIONAL TAX-FREE MONEY MARKET TRUST~++(u) 0.10 10,403,145
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,403,145) 10,403,145
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $736,021,057)* 100.07% 745,387,167
Other Assets and Liabilities, Net (0.07) (555,480)
------ --------------
TOTAL NET ASSETS 100.00% $ 744,831,687
------ --------------
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
## Zero coupon security. Interest rate presented is yield to maturity.
(o)(o) Stepped coupon bond. Interest rate presented is yield to maturity.
(i) Illiquid security.
++ 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.
~ The Fund invests cash balances that it retains for liquidity purposes in
a Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage
Money Market Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of
$10,403,145.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $736,002,020 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $18,475,206
Gross unrealized depreciation (9,090,059)
-----------
Net unrealized appreciation $ 9,385,147
The accompanying notes are an integral part of these financial statements.
32 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MUNICIPAL BONDS & NOTES: 96.89%
ALABAMA: 1.42%
$ 800,000 ALABAMA DRINKING WATER FINANCE REVOLVING FEDERAL LOAN SERIES A
(WATER REVENUE, AMBAC INSURED) 4.85% 08/15/2022 $ 800,016
775,000 JEFFERSON COUNTY AL LIMITED OBLIGATION SERIES A (SALES TAX REVENUE, FSA
INSURED) 5.25 01/01/2018 747,736
1,875,000 JEFFERSON COUNTY AL LIMITED OBLIGATION SUBSERIES A 1
(LICENSING FEES REVENUE, AMBAC INSURED)+/-ss(a)(m)(n) 0.64 01/01/2027 1,087,500
2,375,000 JEFFERSON COUNTY AL LIMITED OBLIGATION SUBSERIES A 2
(LICENSING FEES REVENUE, AMBAC INSURED)+/-ss(a)(m)(n) 0.64 01/01/2027 1,377,500
2,175,000 JEFFERSON COUNTY AL LIMITED OBLIGATION SUBSERIES A 3
(LICENSING FEES REVENUE, AMBAC INSURED)+/-ss(a)(m)(n) 0.64 01/01/2027 1,261,500
150,000 JEFFERSON COUNTY AL LIMITED OBLIGATION SUBSERIES A 4
(LICENSING FEES REVENUE, AMBAC INSURED)+/-ss(a)(m)(n) 0.65 01/01/2027 87,000
2,860,000 JEFFERSON COUNTY AL SERIES B8 (SEWER REVENUE, AGM INSURED) 5.25 02/01/2014 2,695,407
460,000 JEFFERSON COUNTY AL SERIES B8 (SEWER REVENUE, AGM INSURED) 5.25 02/01/2015 431,052
500,000 JEFFERSON COUNTY AL SERIES C 10 (SEWER REVENUE, AGM INSURED)+/-ss(a)(m)(n) 0.35 02/01/2042 202,500
800,000 JEFFERSON COUNTY AL SERIES C 4 (SEWER REVENUE, FGIC INSURED)+/-ss(a)(m)(n) 0.64 02/01/2042 280,000
1,875,000 JEFFERSON COUNTY AL SERIES C 5 (SEWER REVENUE, XLCA INSURED)+/-ss(a)(m)(n) 0.70 02/01/2040 656,250
325,000 JEFFERSON COUNTY AL SERIES C 7 (SEWER REVENUE, FGIC INSURED)+/-ss(a)(m)(n) 0.64 02/01/2042 113,750
600,000 JEFFERSON COUNTY AL SERIES C 8 (SEWER REVENUE, FGIC INSURED)+/-ss(a)(m)(n) 0.64 02/01/2042 210,000
350,000 JEFFERSON COUNTY AL SEWER REVENUE SERIES C 2
(SEWER REVENUE, FGIC INSURED)+/-ss(a)(m)(n) 0.65 02/01/2042 122,500
300,000 JEFFERSON COUNTY AL SEWER REVENUE SERIES C 9
(SEWER REVENUE, AGM LOC)+/-ss(a)(m)(n) 0.35 02/01/2042 105,000
500,000 JEFFERSON COUNTY AL SUBSERIES B 1 B (SEWER REVENUE, FGIC
INSURED)+/-ss(a)(m)(n) 0.69 02/01/2042 175,000
3,000,000 JEFFERSON COUNTY AL SUBSERIES B 1 C (SEWER REVENUE, FGIC
INSURED)+/-ss(a)(m)(n) 0.71 02/01/2042 1,050,000
11,402,711
--------------
ARIZONA: 3.52%
5,000,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S HOSPITAL SERIES A
(HCFR)+/-ss 1.32 02/01/2042 4,442,500
4,045,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S HOSPITAL SERIES B
(HCFR)+/-ss 1.17 02/01/2042 3,593,983
1,000,000 ARIZONA SCHOOL FACILITIES BOARD REVENUE REFUNDING STATE SCHOOL TRUST
(OTHER REVENUE, AMBAC INSURED) 4.00 07/01/2015 1,015,850
3,400,000 ARIZONA SCHOOL FACILITIES BOARD REVENUE REFUNDING STATE SCHOOL TRUST
(OTHER REVENUE, AMBAC INSURED) 5.00 07/01/2016 3,585,946
825,000 ARIZONA SCHOOL FACILITIES BOARD REVENUE REFUNDING STATE SCHOOL TRUST
(OTHER REVENUE, AMBAC INSURED) 5.00 07/01/2017 863,627
1,640,000 ARIZONA SCHOOL FACILITIES BOARD REVENUE REFUNDING STATE SCHOOL TRUST
(OTHER REVENUE, AMBAC INSURED) 5.00 07/01/2018 1,697,974
3,275,000 ARIZONA SPORTS & TOURISM AUTHORITY MULTIPURPOSE STADIUM FACILITY PROJECT A
(INCOME TAX REVENUE, NATL-RE INSURED) 5.00 07/01/2019 3,407,867
2,875,000 MARANA AZ MUNICIPAL PROPERTY CORPORATION SERIES B (LEASE REVENUE) 5.13 07/01/2028 2,886,903
215,000 NAVAJO COUNTY AZ MUNICIPAL PROPERTY CORPORATION JAIL FACILITIES
(LEASE REVENUE, ACA INSURED) 5.63 07/01/2010 214,832
800,000 PIMA COUNTY AZ IDA ACCLAIM CHARTER SCHOOL PROJECT (EDUCATIONAL FACILITIES
REVENUE) 5.60 12/01/2016 752,208
2,000,000 PIMA COUNTY AZ IDA CONSTELLATION SCHOOL PROJECT (LEASE REVENUE) 7.00 01/01/2038 1,734,280
100,000 PIMA COUNTY AZ IDA GLOBAL WATER RESOURCES LLC PROJECT (WATER & SEWER
REVENUE) 5.45 12/01/2017 95,418
1,500,000 PIMA COUNTY AZ IDA LEGACY TRADITIONAL SCHOOL PROJECT (GENERAL FUND REVENUE) 8.50 07/01/2039 1,557,330
2,415,000 VERRADO AZ COMMUNITY FACILITIES DISTRICT # 1 (PROPERTY TAX REVENUE) 6.00 07/15/2013 2,471,173
28,319,891
--------------
CALIFORNIA: 9.61%
2,500,000 ACCESS TO LOANS FOR LEARNING STUDENT LOAN CORPORATION STUDENT LOAN PROGRAM
SERIES D2 (STUDENT LOAN REVENUE, GUARANTEED STUDENT LOANS) 7.85 07/01/2025 2,177,900
7,050,000 ALAMEDA CORRIDOR TRANSPORTATION AUTHORITY SUB LIEN SERIES A
(TRANSPORTATION REVENUE, AMBAC INSURED)## 5.73 10/01/2018 4,235,076
--------------
Wells Fargo Advantage Municipal Income Funds 33
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
CALIFORNIA (continued)
$ 5,500,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK CALIFORNIA
INDEPENDENT OPERATOR SERIES A (ELECTRIC, POWER & LIGHT REVENUE) 5.75% 02/01/2039 $ 5,655,595
2,100,000 CALIFORNIA PCFA REPUBLIC SERVICES INCORPORATED PROJECT SERIES B
(RESOURCE RECOVERY REVENUE)+/-ss 5.25 06/01/2023 2,077,698
5,000,000 CALIFORNIA PCFA WASTE MANAGEMENT INCORPORATED PROJECT SERIES A
(RESOURCE RECOVERY REVENUE)+/-ss 5.00 11/01/2038 5,253,100
2,000,000 CALIFORNIA STATEWIDE CDA COP (ACA INSURED)+/-ss(a)(m)(n) 0.69 05/15/2029 1,900,000
3,000,000 CALIFORNIA STATEWIDE CDA DISPOSAL REPUBLIC SERVICES SERIES A
(RESOURCE RECOVERY REVENUE) 4.95 12/01/2012 3,072,570
850,000 CARLSBAD USD (PROPERTY TAX REVENUE)## 4.70 05/01/2019 542,479
2,920,000 CORONA-NORCAL USD (PROPERTY TAX REVENUE)+/-ss(o)(o) 6.37 08/01/2039 1,870,902
1,275,000 DINUBA CA REDEVELOPMENT AGENCY MERGED CITY REDEVELOPMENT PROJECT # 2
(TAX/ALLOCATION REVENUE) 4.45 10/01/2011 1,272,539
2,400,000 FOOTHILL-EASTERN CORRIDOR AGENCY CA SUB LIEN (TOLL ROAD REVENUE) 5.25 07/15/2010 2,404,488
5,000,000 INLAND CA EMPIRE TOBACCO SECURITIZATION AUTHORITY ASSET BACKED SERIES C2
(TOBACCO SETTLEMENT FUNDED)## 9.50 06/01/2047 157,400
875,000 MADERA COUNTY CA COP VALLEY CHILDREN'S HOSPITAL (HCFR, NATL-RE INSURED) 6.50 03/15/2015 949,594
13,560,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.79 07/01/2017 11,973,480
5,265,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.82 07/01/2019 4,258,069
30,000,000 NORWALK-LA MIRADA CA USD ELECTION 2002 SERIES E
(PROPERTY TAX REVENUE, ASSURED GUARANTEE)## 6.57 08/01/2038 4,535,700
1,000,000 OAKLAND CA USD ALAMEDA COUNTY ELECTION 2006 SERIES A (PROPERTY TAX REVENUE) 6.50 08/01/2024 1,096,690
745,000 OAKLAND CA USD ALAMEDA COUNTY ELECTION 2006 SERIES A (PROPERTY TAX REVENUE) 6.13 08/01/2029 783,248
2,000,000 ONTARIO MONTCLAIR CA SCHOOL DISTRICT (PROPERTY TAX REVENUE, ASSURED
GUARANTEE)## 6.51 08/01/2030 576,000
360,000 PICO RIVERA CA WATER AUTHORITY SERIES A (WATER REVENUE) 5.75 12/01/2012 368,600
1,450,000 PORT HUENEME CA REDEVELOPMENT AGENCY CENTRAL COMMUNITY PROJECT
(TAX/ALLOCATION REVENUE, AMBAC INSURED) 5.50 05/01/2014 1,467,618
5,430,000 RICHMOND CA JOINT POWERS FINANCING AUTHORITY CIVIC CENTER PROJECT SERIES A
(LEASE REVENUE, ASSURED GUARANTEE) 5.88 08/01/2037 5,435,593
6,120,000 RICHMOND CA JOINT POWERS FINANCING AUTHORITY POINT POTRERO SERIES A (LEASE
REVENUE) 6.25 07/01/2024 6,413,699
20,600,000 ROWLAND CA USD 2006 ELECTION SERIES B (PROPERTY TAX REVENUE)## 6.80 08/01/2039 2,915,312
300,000 SAN DIEGO COUNTY CA COP (LEASE REVENUE, AMBAC INSURED) 5.63 09/01/2012 311,763
1,000,000 SAN JOSE CA MULTIFAMILY HOUSING SERIES B (MFHR, GNMA INSURED) 5.45 02/20/2043 1,003,850
400,000 SANTA ROSA CA RANCHERIA TACHI YOKUT TRIBE ENTERPRISE (OTHER REVENUE)++ 4.50 03/01/2011 399,392
4,975,000 STUDENT EDUCATION LOAN MARKETING CORPORATION CA SERIES IV D1
(HEFAR, GUARANTEED STUDENT LOANS) 5.88 01/01/2018 4,290,291
77,398,646
--------------
COLORADO: 2.47%
2,200,000 COLORADO ECFA CHARTER SCHOOL AMERICAN ACADEMY PROJECT
(LEASE REVENUE, MORAL OBLIGATION) 7.13 12/01/2033 2,426,996
3,385,000 COLORADO ECFA CHARTER SCHOOL BANNING LEWIS (PRIVATE SCHOOLS REVENUE)++ 6.13 12/15/2035 2,825,967
1,540,000 COLORADO ECFA CHARTER SCHOOL COMMUNITY LEADERSHIP (LEASE REVENUE) 5.75 07/01/2019 1,402,062
470,000 COLORADO ECFA CHARTER SCHOOL MONUMENT ACADEMY PROJECT (OTHER REVENUE) 5.50 10/01/2017 434,943
500,000 COLORADO ECFA CHARTER SCHOOL MONUMENT ACADEMY SERIES A (LEASE REVENUE) 7.25 10/01/2039 475,730
2,165,000 COLORADO ECFA UNION COLONY CHARTER SCHOOL PROJECT (OTHER REVENUE)++ 5.75 12/01/2037 1,703,509
660,000 COLORADO HFA SERIES A2 (SFHR, NATL-RE INSURED) 6.50 08/01/2031 689,297
200,000 COLORADO HFA SERIES B2 (SFHR) 7.10 04/01/2017 207,126
730,000 COLORADO HFA SERIES B3 (SFHR, AGM INSURED) 6.70 08/01/2017 778,100
4,825,000 E-470 PUBLIC HIGHWAY AUTHORITY CAPITAL APPRECIATION SENIOR LIEN SERIES B
(TOLL ROAD REVENUE, NATL-RE INSURED)## 5.26 09/01/2016 3,393,374
495,000 EAGLE COUNTY CO AIRPORT TERMINAL CORPORATION AIRPORT TERMINAL IMPROVEMENT
PROJECT SERIES B (AIRPORT REVENUE) 5.05 05/01/2015 433,130
640,000 EAGLE COUNTY CO AIRPORT TERMINAL CORPORATION AIRPORT TERMINAL IMPROVEMENT
PROJECT SERIES B (AIRPORT REVENUE) 5.25 05/01/2020 533,434
34 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
COLORADO (continued)
$ 2,290,000 EAGLE COUNTY CO AIRPORT TERMINAL CORPORATION AIRPORT TERMINAL PROJECT
SERIES A (AIRPORT REVENUE) 5.15% 05/01/2017 $ 1,936,287
2,500,000 PUBLIC AUTHORITY FOR CO ENERGY NATURAL GAS (UTILITIES REVENUE) 5.75 11/15/2018 2,618,825
19,858,780
--------------
CONNECTICUT: 0.16%
1,320,000 EASTERN CONNECTICUT RESOURCE RECOVERY AUTHORITY SOLID WASTE REVENUE
WHEELABRATOR LISBON PROJECT SERIES A (OTHER REVENUE) 5.50 01/01/2014 1,321,465
--------------
DISTRICT OF COLUMBIA: 0.08%
410,000 DISTRICT OF COLUMBIA TOBACCO SETTLEMENT FINANCING CORPORATION ASSET-BACKED
BONDS (TOBACCO SETTLEMENT FUNDED REVENUE) 5.38 05/15/2010 413,629
205,000 DISTRICT OF COLUMBIA TOBACCO SETTLEMENT FINANCING CORPORATION ASSET-BACKED
BONDS (TOBACCO SETTLEMENT FUNDED REVENUE) 5.70 05/15/2012 211,595
625,224
--------------
FLORIDA: 3.76%
3,150,000 AVE MARIA STEWARDSHIP COMMUNITY DEVELOPMENT DISTRICT FL ANTICIPATION BONDS
(SPECIAL ASSESSMENT REVENUE) 4.80 11/01/2012 2,411,829
2,265,000 CAPE CORAL FL BOND ANTICIPATION NOTES (WATER REVENUE) 6.00 10/01/2011 2,307,990
3,275,000 CONNERTON WEST COMMUNITY DEVELOPMENT DISTRICT FL SERIES B
(SPECIAL ASSESSMENT REVENUE)(i) 5.13 05/01/2016 1,254,915
205,000 GULF BREEZE FL REVENUE MIAMI BEACH LOCAL GOVERNMENT SERIES B
(OTHER REVENUE, FGIC INSURED)+/-ss 4.75 12/01/2015 206,396
1,115,000 HILLSBOROUGH COUNTY FL PORT DISTRICT TAMPA PORT AUTHORITY PROJECT SERIES A
PREREFUNDED (AIRPORT REVENUE, NATL-RE INSURED) 5.75 06/01/2017 1,172,088
1,175,000 HILLSBOROUGH COUNTY FL PORT DISTRICT TAMPA PORT AUTHORITY PROJECT SERIES A
PREREFUNDED (AIRPORT REVENUE, NATL-RE INSURED) 5.75 06/01/2018 1,225,972
1,240,000 HILLSBOROUGH COUNTY FL PORT DISTRICT TAMPA PORT AUTHORITY PROJECT SERIES A
PREREFUNDED (AIRPORT REVENUE, NATL-RE INSURED) 5.75 06/01/2019 1,289,377
4,245,000 MIAMI DADE COUNTY FL IDA AIRIS MIAMI II LLC PROJECT (IDR, AMBAC INSURED) 6.00 10/15/2025 3,965,085
3,210,000 ORLANDO FL HOUSING AUTHORITY WEST OAKS APARTMENTS PROJECTS PUTABLE
(HOUSING REVENUE, FNMA INSURED)ss 5.05 08/01/2033 3,391,686
5,000,000 PALM BEACH COUNTY FL HEALTH FACILITIES AUTHORITY POOLED HOSPITAL LOAN
PROGRAM (HCFR, SUNTRUST BANK LOC)+/-ss 0.50 11/01/2025 5,000,000
4,800,000 PUTNAM COUNTY FL DEVELOPMENT AUTHORITY PCR SEMINOLE PROJECT SERIES A
(ELECTRIC, POWER & LIGHT REVENUE, AMBAC INSURED)+/-ss 5.35 03/15/2042 5,094,336
3,965,000 SUNRISE FL CAP APPRECIATION SERIES B (TAX REVENUE, NATL-RE INSURED)## 4.22 10/01/2016 2,971,331
30,291,005
--------------
GEORGIA: 0.86%
1,000,000 CLAYTON COUNTY GA DEVELOPMENT AUTHORITY DELTA AIRLINES SERIES B (OTHER
REVENUE) 9.00 06/01/2035 996,500
465,000 FORSYTH COUNTY GA HOSPITAL AUTHORITY ANTICIPATION CERTIFICATES GEORGIA
BAPTIST HEALTH CARE SYSTEM PROJECT (HCFR) 6.38 10/01/2028 586,258
450,000 GEORGIA MUNICIPAL ELECTRIC AUTHORITY POWER REVENUE UNREFUNDED
(ELECTRIC REVENUE, NATL-RE INSURED) 6.50 01/01/2017 522,810
5,000 GEORGIA STATE SERIES B PREREFUNDED (OTHER REVENUE) 6.25 03/01/2011 5,339
3,230,000 MAIN STREET NATURAL GAS INCORPORATED GA GAS SERIES A (NATURAL GAS REVENUE) 5.50 09/15/2022 3,269,212
1,525,000 MAIN STREET NATURAL GAS INCORPORATED GA GAS SERIES B (NATURAL GAS REVENUE) 5.00 03/15/2016 1,555,607
6,935,726
--------------
GUAM: 0.04%
280,000 GUAM EDUCATION FINANCING FOUNDATION COP GUAM PUBLIC SCHOOL FACILITIES
PROJECT SERIES B (LEASE REVENUE, ACA INSURED) 4.50 10/01/2026 223,574
Wells Fargo Advantage Municipal Income Funds 35
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
GUAM (continued)
$ 60,000 GUAM HOUSING CORPORATION GUARANTEED MORTGAGE-BACKED SECURITIES SERIES A
(SFMR, FHLMC INSURED) 5.75% 09/01/2031 $ 64,336
--------------
287,910
HAWAII: 0.01%
40,000 HAWAII STATE HOUSING FINANCE & DEVELOPMENT CORPORATION SERIES A
(SFMR, FNMA INSURED) 5.75 07/01/2030 40,534
--------------
IDAHO: 1.70%
6,300,000 BOISE-KUNA IRRIGATION DISTRICT (ELECTRIC, POWER & LIGHT REVENUE) 7.38 06/01/2040 7,104,132
1,750,000 IDAHO HOUSING & FINANCE ASSOCIATION IDAHO ARTS CHARTER SCHOOL INCORPORATED
SERIES A (OTHER REVENUE) 6.50 12/01/2038 1,502,463
500,000 IDAHO HOUSING & FINANCE ASSOCIATION LIBERTY CHARTER SCHOOL SERIES A
(OTHER REVENUE) 6.00 06/01/2038 467,750
2,500,000 IDAHO HOUSING & FINANCE ASSOCIATION NORTH STAR CHARTER SCHOOL
PROJECT SERIES A (OTHER REVENUE) 9.50 07/01/2039 2,795,725
1,500,000 IDAHO HOUSING & FINANCE ASSOCIATION SERIES A (OTHER REVENUE) 6.13 07/01/2038 1,362,795
70,000 IDAHO HOUSING & FINANCE ASSOCIATION SERIES C2 (SFMR) 6.35 07/01/2015 70,095
290,000 IDAHO HOUSING & FINANCE ASSOCIATION SERIES E CL I (SFMR) 3.60 07/01/2033 283,707
100,000 IDAHO HOUSING & FINANCE ASSOCIATION SERIES H2 (SFMR, FHA INSURED) 6.15 01/01/2028 100,535
13,687,202
--------------
ILLINOIS: 5.98%
2,740,000 AURORA IL SERIES B (TAX/ALLOCATION REVENUE) 5.85 12/30/2013 2,740,959
4,000,000 CHICAGO IL BOARD OF EDUCATION LEASE CERTIFICATES SERIES A
(LEASE REVENUE, NATL-RE INSURED) 6.00 01/01/2020 4,583,400
2,415,000 CHICAGO IL SERIES D (PROPERTY TAX REVENUE, NATL-RE INSURED) 5.50 01/01/2035 2,443,594
246,000 DUPAGE COUNTY IL SPECIAL SERVICE AREA # 31MONARCH LANDING PROJECT
(SPECIAL TAX REVENUE) 5.40 03/01/2016 231,575
2,750,000 EUREKA IL EUREKA COLLEGE PROJECT 1998 B+/-ss 7.00 01/01/2019 2,762,155
146,156 ILLINOIS DEVELOPMENT FINANCE AUTHORITY BALANCE COMMUNITY REHABILITATION
SERIES A (HCFR) 7.88 07/01/2020 105,231
410,000 ILLINOIS FINANCE AUTHORITY NEW MONEY COMMUNITY REHABILITATION SERIES A
(HCFR, GO OF PARTICIPANTS) 5.35 07/01/2027 359,591
1,620,000 ILLINOIS FINANCE AUTHORITY REVENUE IL MEDICAL DISTRICT COMMISSION PROJECT A
(HCFR, CIFG INSURED) 4.13 09/01/2018 1,593,837
2,000,000 ILLINOIS HOUSING DEVELOPMENT AUTHORITY MULTI HOUSING SERIES A-1
(MFHR, GNMA INSURED) 5.75 12/20/2032 2,048,320
10,000,000 KANE COUNTY IL COMMUNITY USD # 304 GENEVA SERIES A
(PROPERTY TAX REVENUE, AGM INSURED) 9.00 01/01/2023 14,770,900
1,745,000 LAKE COUNTY IL COMMUNITY CONSOLIDATED SCHOOL DISTRICT # 24 MILLBURN
CAPITAL APPRECIATION BONDS (PROPERTY TAX REVENUE, NATL-RE INSURED)## 3.60 12/01/2015 1,397,064
3,080,000 LAKE COUNTY IL COMMUNITY HIGH SCHOOL DISTRICT # 117 ANTIOCH CAPITAL
APPRECIATION SERIES B (PROPERTY TAX REVENUE, NATL-RE INSURED)## 4.31 12/01/2016 2,276,274
715,000 LAKE COUNTY IL SCHOOL DISTRICT # 38 BIG HALLOW CAPITAL APPRECIATION
(PROPERTY TAX REVENUE, AMBAC)## 4.03 02/01/2016 557,907
765,000 ROCKFORD IL FAUST LANDMARK APARTMENTS PROJECT SERIES A HUD
(MFHR, NATL-RE/FHA INSURED HUD SECTION 8) 6.75 01/01/2018 772,359
1,025,000 SOUTHWESTERN IL DEVELOPMENT AUTHORITY LOCAL GOVERNMENT PROGRAM
COLLINSVILLE LIMITED (SALES TAX REVENUE) 5.00 03/01/2025 836,021
1,500,000 SOUTHWESTERN IL DEVELOPMENT FINANCE AUTHORITY LOCAL GOVERNMENT
PROGRAM COLLINSVILLE LIMITED (SALES TAX REVENUE) 5.35 03/01/2031 1,133,265
605,000 TAZEWELL COUNTY IL SCHOOL DISTRICT # 51 (PROPERTY TAX REVENUE,
NATL-RE FGIC INSURED) 9.00 12/01/2023 884,437
8,980,000 WILL COUNTY IL COMMUNITY USD # 201 U CRETE-MONEE (PROPERTY
TAX REVENUE, NATL-RE FGIC INSURED)## 5.29 11/01/2019 5,251,953
36 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
ILLINOIS (continued)
$ 3,680,000 WILL COUNTY IL COMMUNITY USD # 201 U CRETE-MONEE CAP APPRECIATION
(PROPERTY TAX REVENUE, NATL-RE FGIC INSURED)## 4.53% 11/01/2016 $ 2,664,614
1,880,000 WILL COUNTY IL COMMUNITY USD # 201 U CRETE-MONEE CAPITAL APPRECIATION
(PROPERTY TAX REVENUE, NATL-RE INSURED)## 6.15 11/01/2024 765,498
48,178,954
--------------
INDIANA: 0.60%
3,600,000 INDIANA BOND BANK SPECIAL PROGRAM BMA INDEX SERIES B2 (UTILITIES
REVENUE)+/-ss 0.90 10/15/2022 2,942,100
290,000 INDIANAPOLIS IN LOCAL PUBLIC IMPROVEMENT SERIES B (OTHER REVENUE) 6.00 01/10/2020 334,631
2,000,000 VALPARAISO IN ECONOMIC DEVELOPMENT VALPARAISO FAMILY YMCA (OTHER REVENUE) 6.00 12/01/2036 1,544,260
4,820,991
--------------
IOWA: 0.94%
360,000 CORALVILLE IA COP SERIES D (LEASE REVENUE) 5.25 06/01/2016 384,602
125,000 IOWA FINANCE AUTHORITY CHILD SERVICES (HCFR) 5.00 06/01/2010 125,159
1,620,000 XENIA RURAL WATER DISTRICT IA WATER (WATER REVENUE, CIFG INSURED) 5.00 12/01/2017 1,470,425
500,000 XENIA RURAL WATER DISTRICT IA WATER (WATER REVENUE, CIFG INSURED) 4.25 12/01/2019 398,830
1,400,000 XENIA RURAL WATER DISTRICT IA WATER (WATER REVENUE, CIFG INSURED) 4.50 12/01/2031 921,886
6,420,000 XENIA RURAL WATER DISTRICT IA WATER (WATER REVENUE, CIFG INSURED) 5.00 12/01/2041 4,267,502
7,568,404
--------------
KANSAS: 1.05%
220,000 KANSAS DEVELOPMENT FINANCE AUTHORITY HEALTH FACILITIES HARTFORD
SERIES B 1 (HCFR,ACA INSURED) 6.13 04/01/2012 224,211
1,165,000 OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT
(TAX INCREMENTAL/ALLOCATION REVENUE) 5.50 09/01/2026 831,169
340,000 SEDGWICK & SHAWNEE COUNTIES KS MORTGAGE-BACKED SECURITIES
SERIES A2 (SFMR, GNMA INSURED)+/-ss 6.70 06/01/2029 346,555
515,000 SEDGWICK & SHAWNEE COUNTIES KS MORTGAGE-BACKED SECURITIES
SERIES A5 (SFMR, GNMA/FNMA INSURED) 5.70 12/01/2036 533,308
3,320,000 WYANDOTTE COUNTY KANSAS CITY UNITED GOVERNMENT TRANSPORTATION
DEVELOPMENT DISTRICT LEGENDS VILLAGE WEST PROJECT (OTHER REVENUE) 4.88 10/01/2028 2,429,808
4,050,000 WYANDOTTE COUNTY KS CITY UNIFIED GOVERNMENT REFERENDUM SALES TAX
SECOND LIEN AREA B (SALES TAX REVENUE) 5.00 12/01/2020 4,082,846
8,447,897
--------------
KENTUCKY: 1.78%
7,910,000 KENTUCKY ASSET LIABILITY COMMISSION GENERAL FUND REVENUE PROJECT SERIES A
(OTHER REVENUE, NATL-RE FGIC INSURED)+/-ss 0.72 11/01/2027 6,660,220
10,000,000 KENTUCKY ASSET LIABILITY COMMISSION GENERAL FUND REVENUE PROJECT
SERIES B (OTHER REVENUE, NATL-RE FGIC INSURED)+/-ss 0.74 11/01/2025 7,672,500
14,332,720
--------------
LOUISIANA: 2.97%
2,900,000 LOUISIANA PFA BLACK & GOLD FACILITIES PROJECT SERIES A (COLLEGE &
UNIVERSITY REVENUE, CIFG INSURED) 5.00 07/01/2032 2,597,095
700,000 LOUISIANA PFA BLACK & GOLD FACILITIES PROJECT SERIES A (HEFAR, CIFG INSURED) 5.00 07/01/2030 586,859
255,000 LOUISIANA PFA BLACK & GOLD FACILITIES PROJECT SERIES A (HOUSING REVENUE,
CIFG INSURED) 4.50 07/01/2038 181,575
2,025,000 LOUISIANA STATE CITIZENS PROPERTY INSURANCE CORPORATION SERIES B
(OTHER REVENUE, AMBAC INSURED) 5.00 06/01/2019 2,037,049
925,000 LOUISIANA STATE CITIZENS PROPERTY INSURANCE CORPORATION SERIES B
(OTHER REVENUE, AMBAC INSURED) 5.00 06/01/2020 923,104
2,500,000 LOUISIANA STATE TOBACCO SETTLEMENT FINANCING CORPORATION SERIES 2001B
(TOBACCO SETTLEMENT FUNDED) 5.50 05/15/2030 2,493,150
Wells Fargo Advantage Municipal Income Funds 37
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
LOUISIANA: (continued)
$ 1,700,000 NEW ORLEANS LA (PROPERTY TAX REVENUE, FGIC INSURED) 5.50% 12/01/2021 $ 1,773,015
400,000 NEW ORLEANS LA (SEWER REVENUE, FGIC INSURED) 5.38 06/01/2014 402,364
5,950,000 NEW ORLEANS LA AVIATION BOARD GULF OPPORTUNITY ZONE CONSOLIDATED
RENTAL CAR SERIES A (AIRPORT REVENUE) 6.50 01/01/2040 5,974,098
1,250,000 NEW ORLEANS LA AVIATION BOARD SERIES A 1 (AIRPORT REVENUE, ASSURED
GUARANTY) 6.00 01/01/2023 1,412,188
770,000 NEW ORLEANS LA SEWER SERVICE (SEWER REVENUE, ASSURED GUARANTY) 5.75 06/01/2018 803,387
320,000 NEW ORLEANS LA SEWER SERVICE (SEWER REVENUE, ASSURED GUARANTY) 6.00 06/01/2019 340,349
1,000,000 NEW ORLEANS LA SEWER SERVICE (SEWER REVENUE, ASSURED GUARANTY) 6.00 06/01/2024 1,055,110
725,000 ORLEANS PARISH LA PARISHWIDE SCHOOL DISTRICT SERIES A (PROPERTY
TAX REVENUE, NATL-RE INSURED) 5.13 09/01/2014 725,500
2,500,000 RAPIDES FINANCE AUTHORITY REVENUE LA CLECO POWER LLC PROJECT
(OTHER REVENUE)+/-ss 5.25 11/01/2037 2,600,775
23,905,618
--------------
MAINE: 1.04%
8,000,000 MAINE EDUCATIONAL AUTHORITY STUDENT LOAN REVENUE SERIES A 3
(COLLEGE & UNIVERSITY REVENUE, ASSURED GUARANTEED) 5.88 12/01/2039 8,391,600
--------------
MASSACHUSETTS: 2.18%
1,200,000 MASSACHUSETTS DEVELOPMENT FINANCE AGENCY REVENUE SABIS INTERNATIONAL
CHARTER SERIES A (OTHER REVENUE) 8.00 04/15/2031 1,325,016
3,950,000 MASSACHUSETTS DEVELOPMENT FINANCE AGENCY REVENUE SABIS INTERNATIONAL
CHARTER SERIES A (OTHER REVENUE) 8.00 04/15/2039 4,333,664
1,825,000 MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY NUCLEAR MIX # 4
SERIES 1 (ELECTRIC REVENUE, NATL-RE INSURED)+/-ss(a)(m)(n) 0.24 07/01/2017 1,640,219
4,950,000 MASSACHUSETTS STATE HEFA SUFFOLK UNIVERSITY SERIES A (LEASE REVENUE,
AMBAC INSURED) 6.00 07/01/2024 5,194,728
800,000 MASSACHUSETTS STATE PORT AUTHORITY DELTA AIRLINES INCORPORATED PROJECT
SERIES A (LEASE REVENUE, AMBAC INSURED) 5.50 01/01/2013 743,568
1,200,000 MASSACHUSETTS STATE SERIES C (OTHER REVENUE, AGM INSURED)+/-ss(o)(o) 1.31 11/01/2020 1,039,836
3,870,000 MASSACHUSETTS STATE WATER POLLUTION ABATEMENT (WATER REVENUE)+/-ss 2.81 08/01/2022 3,299,059
17,576,090
--------------
MICHIGAN: 4.86%
1,400,000 CESAR CHAVEZ ACADEMY MI INCORPORATED COP (LEASE REVENUE) 8.00 02/01/2033 1,404,466
1,955,000 DETROIT MI (PROPERTY TAX REVENUE, NATL-RE INSURED) 4.00 04/01/2011 1,920,592
5,855,000 DETROIT MI CAPITAL IMPROVEMENT LIMITED TAX SERIES A-1 (PROPERTY TAX
REVENUE) 5.00 04/01/2015 5,393,099
3,190,000 DETROIT MI CONVENTION FACILITY COBO HALL (TAX REVENUE, NATL-RE INSURED) 5.00 09/30/2013 3,354,349
1,355,000 DETROIT MI SEWAGE DISPOSAL REVENUE REFUNDING SENIOR LIEN SERIES C
(SEWER REVENUE, NATL-RE FGIC INSURED) 5.25 07/01/2016 1,428,116
150,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES A (OTHER REVENUE, AMBAC INSURED) 4.80 11/01/2015 157,500
340,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES A (OTHER REVENUE, AMBAC INSURED) 5.00 05/01/2017 326,913
290,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES B-GROUP A (OTHER REVENUE, AMBAC INSURED) 5.00 12/01/2015 293,915
2,770,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES B-GROUP A (OTHER REVENUE, AMBAC INSURED) 4.25 12/01/2016 2,649,837
2,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES B-GROUP A (OTHER REVENUE, AMBAC INSURED) 5.00 12/01/2017 1,916,860
1,185,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES B-GROUP A (OTHER REVENUE, AMBAC INSURED) 5.25 12/01/2023 1,134,294
1,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES C (OTHER REVENUE, AMBAC INSURED) 3.63 05/01/2016 929,800
75,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN PROGRAM
SERIES G (OTHER REVENUE, AMBAC INSURED)## 7.27 05/01/2019 44,954
38 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MICHIGAN (continued)
$ 50,000 MICHIGAN MUNICIPAL BOND AUTHORITY REVENUE LOCAL GOVERNMENT LOAN
PROGRAM SERIES G (OTHER REVENUE, AMBAC INSURED)## 7.27% 05/01/2020 $ 27,982
7,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY STUDENT AID NOTES SERIES D
(OTHER REVENUE) 9.50 08/20/2010 6,990,200
2,445,000 MICHIGAN PUBLIC EDUCATIONAL FACILITIES AUTHORITY LIMITED OBLIGATION
BRADFORD (EDUCATIONAL FACILITIES REVENUE)++ 6.50 09/01/2037 2,148,397
1,257,500 MICHIGAN PUBLIC EDUCATIONAL FACILITIES AUTHORITY LIMITED OBLIGATION
CRESCENT (PRIVATE SCHOOL REVENUE) 7.00 10/01/2036 1,079,124
1,120,000 MICHIGAN PUBLIC EDUCATIONAL FACILITIES AUTHORITY LIMITED OBLIGATION
NATAKI TALIBAH (PRIVATE SCHOOL REVENUE) 6.25 10/01/2023 941,696
1,250,000 MICHIGAN PUBLIC EDUCATIONAL FACILITIES AUTHORITY REVENUE LIMITED
OBLIGATION BRADFORD ACADEMY PROJECT (OTHER REVENUE) 8.75 09/01/2039 1,349,763
2,500,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY (HCFR)+/-ss 6.00 12/01/2034 2,893,250
500,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY TRINITY HEALTH SERIES A (HCFR) 5.00 12/01/2014 545,145
825,000 MICHIGAN STATE STRATEGIC FUND LIMITED ADJUSTED REFUNDING DOW
CHEMICAL PROJECT SERIES J A 2 (IDR)+/-ss 5.50 12/01/2028 840,989
40,000 MICHIGAN STATE STRATEGIC FUND SERIES A (HOUSING REVENUE, GUARANTEE
AGREEMENT) 5.25 10/15/2021 43,533
1,460,000 STAR INTERNATIONAL ACADEMY MI COP FULL TERM (LEASE REVENUE) 6.13 03/01/2037 1,325,125
39,139,899
--------------
MINNESOTA: 0.68%
500,000 AUSTIN MN HOUSING & RDA COURTYARD RESIDENCE PROJECT
SERIES A (HOUSING REVENUE) 7.25 01/01/2032 500,155
750,000 BAYTOWN TOWNSHIP MN ST. CROIX PREPARATORY ACADEMY
SERIES A (LEASE REVENUE) 7.00 08/01/2038 692,040
750,000 BECKER MN PCR NORTHERN STATES POWER SERIES A (IDR)+/-ss 8.50 03/01/2019 846,413
1,100,000 BECKER MN PCR NORTHERN STATES POWER SERIES A (IDR)+/-ss 8.50 09/01/2019 1,239,590
900,000 FALCON HEIGHT MN KALEIDOSCOPE CHARTER SCHOOL SERIES A (LEASE REVENUE) 6.00 11/01/2037 692,145
1,500,000 WOODBURY MN MATH SCIENCE ACADEMY PROJECT SERIES A (OTHER REVENUE) 7.50 12/01/2031 1,510,845
5,481,188
--------------
MISSISSIPPI: 0.05%
500,000 GULFPORT-BILOXI REGIONAL AIRPORT AUTHORITY MS PASSENGER FACILITIES SERIES A
(AIRPORT REVENUE, ACA INSURED) 5.00 10/01/2022 387,775
--------------
MISSOURI: 2.81%
1,000,000 CHESTERFIELD VALLEY TRANSPORTATION DEVELOPMENT DISTRICT MO
(SALES TAX REVENUE, CIFG INSURED) 4.00 04/15/2026 1,007,430
535,000 DESLOGE MO US HIGHWAY 67 STATE STREET REDEVELOPMENT PROJECT
(TAX INCREMENTAL REVENUE) 5.20 04/15/2020 466,857
550,000 FENTON MO GRAVOIS BLUFFS REDEVELOPMENT PROJECT (TAX/ALLOCATION REVENUE) 4.50 04/01/2021 532,169
4,300,000 INDEPENDENCE MO THIRTY-NINTH STREET TRANSPORTATION DISTRICT IMPROVEMENT
DEVELOPMENT ROAD IMPROVEMENT PROJECT (TRANSPORTATION REVENUE) 6.88 09/01/2032 4,075,626
7,615,000 KANSAS CITY MO SPECIAL OBLIGATION SERIES E (OTHER REVENUE)## 5.16 02/01/2019 4,743,307
3,030,000 LAKE OF THE OZARKS MO COMMUNITY BRIDGE CORPORATION (TOLL ROAD REVENUE) 5.25 12/01/2014 2,739,847
460,000 OZARK MO COP COMMUNITY CENTER PROJECT (LEASE REVENUE) 5.00 09/01/2026 435,077
1,500,000 SIKESTON MO (ELECTRIC, POWER & LIGHT REVENUE, NATL-RE INSURED) 6.00 06/01/2016 1,588,395
2,000,000 ST. LOUIS MO AIRPORT REVENUE ST. LOUIS INTERNATIONAL SERIES A 1 (AIRPORT
REVENUE) 6.25 07/01/2029 2,103,800
2,000,000 ST. LOUIS MO AIRPORT REVENUE ST. LOUIS INTERNATIONAL SERIES A 1 (AIRPORT
REVENUE) 6.63 07/01/2034 2,110,260
2,555,000 ST. LOUIS MO LAMBERT ST. LOUIS INTERNATIONAL SERIES B (AIRPORT REVENUE,
NATL-RE FGIC INSURED) 6.00 07/01/2013 2,811,548
22,614,316
--------------
NEVADA: 0.97%
3,000,000 CLARK COUNTY NV NEVADA POWER COMPANY PCR PROJECT SERIES D
(IDR, ACA INSURED) 5.30 10/01/2011 2,991,810
300,000 DIRECTOR STATE NV DEPARTMENT BUSINESS & INDUSTRY SOLID WASTE DISPOSAL
REPUBLIC
SERVICES INCORPORATE PROJECT (RESOURCE RECOVERY REVENUE)+/-ss 5.63 12/01/2026 306,498
Wells Fargo Advantage Municipal Income Funds 39
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
NEVADA (continued)
$ 1,710,000 DIRECTOR STATE NV DEPARTMENT OF BUSINESS & INDUSTRY CAPITAL APPRECIATION
LAS VEGAS MONORAIL (TRANSPORTATION REVENUE, AMBAC INSURED)## 15.57% 01/01/2024 $ 218,914
2,500,000 RENO-SPARKS NV INDIAN COLONY GOVERNMENTAL (OTHER REVENUE, US BANK NA LOC) 5.00 06/01/2024 2,454,575
1,900,000 RENO-SPARKS NV INDIAN COLONY GOVERNMENTAL (OTHER REVENUE, US BANK NA LOC) 5.13 06/01/2027 1,849,346
7,821,143
--------------
NEW HAMPSHIRE: 0.12%
2,375,000 MANCHESTER NH HOUSING & REDEVELOPMENT AUTHORITY CAPITAL APPRECIATION
SERIES B (OTHER REVENUE, ACA INSURED)## 8.82 01/01/2021 897,061
250,000 MANCHESTER NH HOUSING & REDEVELOPMENT AUTHORITY CAPITAL APPRECIATION
SERIES B (OTHER REVENUE, ACA INSURED)## 9.25 01/01/2025 64,398
961,459
--------------
NEW JERSEY: 1.68%
10,000,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A
(COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2027 10,458,100
2,900,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A
(COLLEGE & UNIVERSITY REVENUE) 5.63 06/01/2030 3,050,249
13,508,349
--------------
NEW MEXICO: 0.41%
2,000,000 NEW MEXICO EDUCATIONAL ASSISTANCE AMOUNT EDUCATION LOAN SENIOR SERIES C
(STUDENT LOAN REVENUE) 4.10 09/01/2015 2,002,120
1,380,000 OTERO COUNTY NM JAIL PROJECT (OTHER REVENUE) 5.50 04/01/2013 1,340,118
3,342,238
--------------
NEW YORK: 2.47%
2,555,000 GENESEE COUNTY NY IDA UNITED MEMORIAL MEDICAL CENTER PROJECT (HCFR) 4.75 12/01/2014 2,539,440
70,000 NASSAU COUNTY NY IDA SPECIAL NEEDS POOLED B 1 (IDR) 6.88 07/01/2010 72,325
335,000 NEW YORK CITY NY IDA SPECIAL NEEDS POOLED SERIES A1 (IDR) 6.88 07/01/2010 336,420
1,120,000 NEW YORK NY IDA AMERICAN AIRLINES JFK INTERNATIONAL AIRPORT
(AIRPORT REVENUE) 7.13 08/01/2011 1,111,118
6,125,000 NEW YORK STATE DORMITORY AUTHORITY NORTH SHORE SERIES B (HCFR)+/-ss 0.92 05/01/2018 5,231,056
2,600,000 NEW YORK STATE ENERGY R&D AUTHORITY (UTILITIES REVENUE) 6.95 07/01/2026 2,603,926
4,300,000 NEW YORK STATE ENERGY R&D AUTHORITY GAS FACILITIES REVENUE BROOKLYN
UNION GAS COMPANY SERIES B (UTILITIES REVENUE)+/-ss 12.63 07/01/2026 4,312,986
2,500,000 NIAGARA COUNTY NY IDA SERIES C (RESOURCE RECOVERY REVENUE)+/-ss 5.63 11/15/2024 2,480,425
1,200,000 YONKERS NY IDA SARAH LAWRENCE COLLEGE PROJECT SERIES A
(COLLEGE & UNIVERSITY REVENUE) 5.75 06/01/2024 1,246,776
19,934,472
--------------
NORTH CAROLINA: 0.80%
8,000,000 PERSON COUNTY NC INDUSTRIAL FACILITIES AND PCR CAROLINA POWER & LIGHT
SERIES A (IDR, AMBAC INSURED)+/-ss(a)(m)(n) 0.42 11/01/2018 6,456,000
--------------
NORTH DAKOTA: 0.04%
340,000 THREE AFFILIATED TRIBES OF THE FORT BERTHOLD RESERVATION ND
(RECREATIONAL FACILITIES REVENUE) 6.30 11/15/2010 335,376
--------------
OHIO: 1.29%
250,000 JOHNSTOWN OH MORTGAGE (SEWER REVENUE) 6.00 12/01/2017 250,288
4,400,000 OHIO ENTERPRISE BOND TOLEDO SERIES 2A (ECONOMIC DEVELOPMENT REVENUE) 5.50 12/01/2019 4,301,264
4,020,000 OHIO MUNICIPAL ELECTRIC GENERATION AGENCY REFUNDING JOINT VENTURE 5
CERTIFICATES OF BENEFICIAL INTEREST (ELECTRIC, POWER & LIGHT REVENUE, AMBAC
INSURED) 5.00 02/15/2018 4,155,595
1,900,000 RIVERSOUTH OH AUTHORITY LAZARUS BUILDING REDEVELOPMENT SERIES A (LEASE
REVENUE) 5.75 12/01/2027 1,707,720
10,414,867
--------------
40 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
OKLAHOMA: 2.24%
$ 2,780,062 COMANCHE COUNTY OK INDEPENDENT SCHOOL DISTRICT # 4 GERONIMO
(EDUCATIONAL FACILITIES REVENUE) 6.25% 08/15/2014 $ 2,953,760
1,110,000 MCALESTER OK PUBLIC WORKS AUTHORITY SERIES A (WATER REVENUE, FSA INSURED) 5.75 02/01/2020 1,117,526
5,000,000 MCGEE CREEK AUTHORITY OK WATER REVENUE (WATER REVENUE, NATL-RE INSURED) 6.00 01/01/2023 5,385,050
5,000,000 OKLAHOMA CITY OK INDUSTRIAL & CULTURAL FACILITIES SERIES B (HCFR, NATL-RE
INSURED)+/-ss(a)(m)(n) 0.72 06/01/2019 4,675,000
1,200,000 OKLAHOMA DEVELOPMENT FINANCE AUTHORITY PCR PUBLIC SERVICE COMPANY
OKLAHOMA PROJECT (IDR) 5.25 06/01/2014 1,286,232
2,500,000 OKMULGEE OK MUNICIPAL AUTHORITY SERIES A (UTILITY/TAX REVENUE) 5.00 12/01/2024 2,617,075
18,034,643
--------------
OREGON: 0.57%
1,370,000 OREGON STATE HEALTH HOUSING ECFA ASPEN FOUNDATION II
SERIES A (HOUSING REVENUE)(i) 4.04 04/15/2029 735,361
55,000 OREGON STATE HOUSING & COMMUNITY SERVICES DEPARTMENT SERIES M (SFMR) 6.20 07/01/2028 55,044
805,000 OREGON STATE HOUSING & COMMUNITY SERVICES DEPARTMENT SERIES N (SFMR) 3.90 07/01/2029 803,390
3,000,000 WARM SPRINGS RESERVATION OR CONFEDERATED TRIBES PELTON ROUND BUTTE
TRIBAL SERIES B 6.38 11/01/2033 2,978,970
4,572,765
--------------
PENNSYLVANIA: 11.37%
1,410,000 ALLEGHENY COUNTY PA AIRPORT AUTHORITY PITTSBURG (AIRPORT REVENUE,
NATL-RE IBC FGIC INSURED)+/-ss 5.00 01/01/2016 1,415,076
1,100,000 ALLEGHENY COUNTY PA AIRPORT AUTHORITY PITTSBURGH INTERNATIONAL AIRPORT
(AIRPORT REVENUE, NATL-RE FGIC INSURED) 6.00 01/01/2014 1,112,518
4,585,000 ALLEGHENY COUNTY PA AIRPORT AUTHORITY PITTSBURGH INTERNATIONAL AIRPORT
(AIRPORT REVENUE, NATL-RE FGIC INSURED) 6.13 01/01/2016 4,634,747
4,770,000 ALLEGHENY COUNTY PA AIRPORT AUTHORITY SERIES A (AIRPORT REVENUE, AGM
INSURED) 5.00 01/01/2015 5,104,616
1,500,000 ALLEGHENY COUNTY PA HOSPITAL DEVELOPMENT AUTHORITY WEST PENNYSYLVANIA
SERIES A (HCFR) 5.00 11/15/2011 1,466,985
2,200,000 ALLEGHENY COUNTY PA IDA ENVIRONMENTAL (IDR) 6.50 05/01/2017 2,247,916
2,235,000 ALLEGHENY COUNTY PA IDA PROPEL SCHOOLS HOMESTEAD PROJECT SERIES A
(OTHER REVENUE) 7.50 12/15/2029 2,191,909
14,675,000 ALLEGHENY COUNTY PA SERIES C-59B (PROPERTY TAX REVENUE, AGM INSURED)+/-ss 0.74 11/01/2026 12,088,531
200,000 CAMBRIA COUNTY PA (PROPERTY TAX REVENUE, FGIC INSURED) 5.50 08/15/2016 200,126
2,000,000 CHESTER COUNTY PA IDA AVON GROVE CHARTER SCHOOL PROJECT SERIES A
(OTHER REVENUE) 6.38 12/15/2037 1,680,500
1,520,000 CHESTER COUNTY PA IDA RENAISSANCE ACADEMY PROJECT SERIES A
(PRIVATE SCHOOLS REVENUE) 5.63 10/01/2015 1,437,358
1,610,000 DELAWARE COUNTY PA IDA RESOURCE RECOVERY FACILITY SERIES A
(RESOURCE RECOVERY REVENUE) 6.10 07/01/2013 1,610,370
12,500,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY LOCAL GOVERNMENT
(OTHER REVENUE) 5.75 07/01/2032 14,235,250
1,400,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY LOCAL GOVERNMENT SERIES A
(OTHER REVENUE, AMBAC INSURED) 5.50 08/01/2028 1,484,014
2,070,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY LOCAL GOVERNMENT SERIES C
(OTHER REVENUE, AMBAC INSURED) 7.75 07/01/2027 2,784,523
5,100,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES C
(OTHER REVENUE)+/-ss 0.82 06/01/2027 3,694,950
3,615,000 HARRISBURG PA AUTHORITY RESOURCES GUARANTEED SUBORDINATED SERIES D-2
(HCFR, NATL-RE INSURED)+/-ss 5.00 12/01/2033 3,733,608
885,000 LUZERNE COUNTY PA SERIES C (PROPERTY TAX REVENUE, FSA INSURED) 7.00 11/01/2018 1,033,556
135,000 LUZERNE COUNTY PA SERIES E (PROPERTY TAX REVENUE, FSA INSURED) 8.00 11/01/2027 160,537
1,500,000 MONTGOMERY COUNTY PA IDA ACTS RETIREMENT LIFE COMMUNITY SERIES A 1 (HCFR) 5.00 11/15/2013 1,573,275
1,570,000 MONTGOMERY COUNTY PA IDA ACTS RETIREMENT LIFE COMMUNITY SERIES A 1 (HCFR) 5.00 11/15/2014 1,635,139
1,120,000 MONTGOMERY COUNTY PA IDA ACTS RETIREMENT LIFE COMMUNITY SERIES A 1 (HCFR) 5.25 11/15/2015 1,163,456
Wells Fargo Advantage Municipal Income Funds 41
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
PENNSYLVANIA (continued)
$ 5,750,000 PENNSYLVANIA EDFA COLVER PROJECT SERIES F (RESOURCE RECOVERY REVENUE,
AMBAC INSURED) 5.00% 12/01/2015 $ 5,535,985
1,625,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL DEVELOPMENT CULTURAL & COMMERCIAL
CORRIDORS SERIES PG A (OTHER REVENUE, NATL-RE FGIC INSURED) 5.00 12/01/2015 1,709,468
680,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL DEVELOPMENT CULTURAL & COMMERCIAL
CORRIDORS SERIES PG A (OTHER REVENUE, NATL-RE FGIC INSURED) 5.00 12/01/2016 704,120
1,250,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL DEVELOPMENT FIRST PHILADELPHIA
CHARTER SERIES A (OTHER REVENUE) 5.85 08/15/2037 1,095,800
6,140,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL PHILADELPHIA AIRPORT SYSTEM PJ
SERIES A
(AIRPORT REVENUE, NATL-RE FGIC INSURED) 5.30 07/01/2018 6,157,560
2,350,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL PHILADELPHIA AIRPORT SYSTEM PJ
SERIES A (AIRPORT REVENUE, NATL-RE FGIC INSURED) 5.50 07/01/2018 2,393,076
3,340,000 PHILADELPHIA PA GAS WORKS REVENUE REFUNDING 8TH-1998 GENERAL ORDINANCE
SERIES A (UTILITIES REVENUE) 5.25 08/01/2017 3,472,965
1,630,000 PHILADELPHIA PA MUNICIPAL AUTHORITY (LEASE REVENUE) 4.70 04/01/2015 1,688,762
2,155,000 SCRANTON PA SCHOOL DISTRICT PREREFUNDED (PROPERTY TAX, AMBAC INSURED) 5.00 04/01/2017 2,162,607
91,609,303
--------------
PUERTO RICO: 1.13%
1,000,000 PUERTO RICO HFA FEDERAL MODERNIZATION (HOUSING REVENUE) 5.13 12/01/2027 1,002,440
330,000 PUERTO RICO INDUSTRIAL TOURIST EDUCATIONAL MEDICAL & ENVIRONMENTAL CONTROL
FACILITIES ANA G. MENDEZ UNIVERSITY (COLLEGE & UNIVERSITY REVENUE) 5.00 02/01/2010 330,224
5,900,000 PUERTO RICO SALES TAX FINANCING CORPORATION FIRST SUB-SERIES A
(SALES TAX REVENUE) 6.38 08/01/2039 6,366,867
1,425,000 UNIVERSITY OF PUERTO RICO SERIES Q (COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2016 1,436,614
9,136,145
--------------
SOUTH CAROLINA: 4.12%
1,050,000 ALLENDALE COUNTY SC SCHOOL DISTRICT ENERGY SAVINGS SPECIAL OBLIGATION
(LEASE REVENUE, STATE AID WITHHOLDING) 7.00 12/01/2013 1,081,311
1,780,000 ALLENDALE COUNTY SC SCHOOL DISTRICT ENERGY SAVINGS SPECIAL OBLIGATION
(LEASE REVENUE, STATE AID WITHHOLDING) 8.50 12/01/2018 1,839,381
5,000,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 15.55 01/01/2027 450,000
400,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 15.03 01/01/2028 33,000
10,350,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 13.34 01/01/2032 714,150
7,800,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 12.82 01/01/2034 468,000
4,350,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 11.88 01/01/2038 187,920
2,075,000 FORT MILL SC FORT MILL SCHOOL FACILITIES CORPORATION (LEASE REVENUE) 5.25 12/01/2019 2,181,261
250,000 KERSHAW COUNTY SC PUBLIC SCHOOLS FOUNDATION INSTALLMENT POWER REVENUE
(LEASE REVENUE, CIFG INSURED) 5.00 12/01/2018 265,993
1,420,000 KERSHAW COUNTY SC PUBLIC SCHOOLS FOUNDATION INSTALLMENT POWER REVENUE
(LEASE REVENUE, CIFG INSURED) 5.00 12/01/2020 1,488,827
2,870,000 KERSHAW COUNTY SC PUBLIC SCHOOLS KERSHAW COUNTY SCHOOL DISTRICT PROJECT
(LEASE REVENUE, CIFG INSURED) 5.00 12/01/2021 2,996,337
1,405,000 KERSHAW COUNTY SC PUBLIC SCHOOLS KERSHAW COUNTY SCHOOL DISTRICT PROJECT
(LEASE REVENUE, CIFG INSURED) 5.00 12/01/2022 1,460,020
6,950,000 KERSHAW COUNTY SC PUBLIC SCHOOLS KERSHAW COUNTY SCHOOL DISTRICT PROJECT
(LEASE REVENUE, CIFG INSURED) 5.00 12/01/2023 7,196,100
550,000 LAURENS COUNTY SC SCHOOL DISTRICT # 055 (LEASE REVENUE) 5.25 12/01/2030 509,823
1,000,000 LEXINGTON COUNTY SC HEALTH SERVICES DISTRICT INCORPORATED (LEASE REVENUE) 5.00 11/01/2016 1,071,320
42 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
SOUTH CAROLINA (continued)
$ 760,000 NEWBERRY SC NEWBERRY COUNTY SCHOOL DISTRICT PROJECT (LEASE REVENUE) 5.25% 12/01/2017 $ 785,308
1,090,000 RICHLAND-LEXINGTON SC AIRPORT REFUNDING COLUMBIA METROPOLITAN
AIRPORT (AIRPORT REVENUE, AGM) 5.00 01/01/2017 1,138,952
150,000 SCAGO EDUCATIONAL FACILITIES CORPORATION FOR SCHOOL PROJECT
(ASSURED GUARANTEE, GUARANTEE AGREEMENT) 5.00 12/01/2015 168,284
640,000 SCAGO EDUCATIONAL FACILITIES CORPORATION FOR SCHOOL PROJECT
(LEASE REVENUE, RADIAN INSURED) 5.00 12/01/2012 675,110
7,500,000 SOUTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY STUDENT LOAN SERIES I
(STUDENT LOAN REVENUE) 5.00 10/01/2024 7,539,675
1,610,000 THREE RIVERS SC SOLID WASTE AUTHORITY CAPITAL APPRECIATION LANDFILL GAS
PROJECT
(RESOURCE RECOVERY REVENUE)## 6.39 10/01/2030 446,276
1,835,000 THREE RIVERS SC SOLID WASTE AUTHORITY CAPITAL APPRECIATION LANDFILL GAS
PROJECT
(RESOURCE RECOVERY REVENUE)## 6.34 10/01/2031 484,238
33,181,286
--------------
SOUTH DAKOTA: 1.24%
$ 2,000,000 LOWER BRULE SIOUX TRIBE SD SERIES B (PROPERTY TAX REVENUE) 5.50 05/01/2019 1,636,600
1,440,000 LOWER BRULE SIOUX TRIBE SD SERIES B (PROPERTY TAX REVENUE) 5.60 05/01/2020 1,159,272
315,000 SISSETON-WAHPETON SD SIOUX TRIBE LAKE TRAVERSE RESERVATION(i) 7.00 11/01/2013 286,568
1,290,000 SISSETON-WAHPETON SD SIOUX TRIBE LAKE TRAVERSE RESERVATION(i) 7.00 11/01/2023 972,699
275,000 SOUTH DAKOTA EDFA POOLED LOAN PROGRAM ANGUS INCORPORATED PROJECT
SERIES A (ELECTRIC REVENUE, LASALLE BANK NA LOC) 4.75 04/01/2010 277,261
285,000 SOUTH DAKOTA EDFA POOLED LOAN PROGRAM ANGUS INCORPORATED PROJECT
SERIES A (ELECTRIC REVENUE, LASALLE BANK NA LOC) 5.00 04/01/2011 296,172
300,000 SOUTH DAKOTA EDFA POOLED LOAN PROGRAM ANGUS INCORPORATED PROJECT
SERIES A (ELECTRIC REVENUE, LASALLE BANK NA LOC) 5.25 04/01/2012 317,847
320,000 SOUTH DAKOTA EDFA POOLED LOAN PROGRAM ANGUS INCORPORATED PROJECT SERIES A
(ELECTRIC REVENUE, LASALLE BANK NA LOC) 5.25 04/01/2013 343,261
370,000 SOUTH DAKOTA EDFA POOLED LOAN PROGRAM MCELEEG PROJECT SERIES B (IDR) 5.00 04/01/2014 395,993
650,000 SOUTH DAKOTA EDFA POOLED LOAN PROGRAM MIDSTATES PRINT SERIES A (IDR) 5.50 04/01/2018 663,345
3,560,000 SOUTH DAKOTA EDFA SPEARFISH FOREST SERIES A (OTHER REVENUE) 5.88 04/01/2028 3,652,133
10,001,151
--------------
TENNESSEE: 2.24%
2,000,000 CLARKSVILLE TN NATURAL GAS ACQUISITION CORPORATION (NATURAL GAS REVENUE) 5.00 12/15/2015 2,056,948
500,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.00 09/01/2015 523,035
2,990,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.00 09/01/2016 3,071,627
1,910,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.25 09/01/2017 1,955,114
2,900,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.25 09/01/2019 2,928,246
2,000,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.00 02/01/2021 1,968,020
2,000,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.00 02/01/2022 1,964,000
3,500,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES C (UTILITIES REVENUE) 5.00 02/01/2018 3,563,210
18,030,200
--------------
TEXAS: 10.48%
11,500,000 ARLINGTON TX SPECIAL OBLIGATION DALLAS COWBOYS SERIES A (SALES TAX REVENUE,
NATL-RE INSURED) 5.00 08/15/2034 11,525,990
475,000 AUSTIN TX CONVENTION ENTERPRISES INCORPORATED CONVENTION CENTER FIRST TIER
SERIES B (OTHER REVENUE)++ 6.00 01/01/2010 475,000
1,005,000 AUSTIN TX CONVENTION ENTERPRISES INCORPORATED CONVENTION CENTER
SECOND TIER SERIES B (IDR)++ 6.00 01/01/2011 1,005,965
3,000,000 BRAZOS RIVER TX HARBOR NAVIGATION DISTRICT AMOUNT THE DOW CHEMICAL
COMPANY SERIES A-1+/-ss 6.25 05/15/2033 3,113,610
150,000 CLIFTON HIGHER EDUCATION FINANCE INCORPORATED REVENUE TEJANO CENTER
COMMUNITY SERIES A (COLLEGE & UNIVERSITY REVENUE) 7.75 02/15/2018 168,822
Wells Fargo Advantage Municipal Income Funds 43
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
TEXAS (continued)
$ 3,045,000 DECATUR TX HOSPITAL AUTHORITY SERIES A (HCFR) 5.75% 09/01/2029 $ 3,584,361
1,200,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.25 10/01/2016 1,197,876
825,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.50 10/01/2016 878,435
755,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.25 10/01/2017 740,361
1,400,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.50 10/01/2019 1,361,822
1,750,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.75 10/01/2025 1,785,088
500,000 HARRIS COUNTY TX HEALTH FACILITIES DEVELOPMENT CORPORATION MEMORIAL
HOSPITAL SYSTEMS PROJECT SERIES A (HCFR, NATL-RE INSURED) 6.00 06/01/2013 543,690
1,400,000 HOUSTON TX WATER CONVEYANCE COP SERIES H (LEASE REVENUE, AMBAC INSURED) 7.50 12/15/2015 1,672,664
7,850,000 HOUSTON TX AIRPORT SYSTEM SERIES C (AIRPORT REVENUE, XLCA
INSURED)+/-ss(a)(m)(n) 0.46 07/01/2032 6,986,500
750,000 LA VERNIA TX HIGHER EDUCATION FINANCE CORPORATION SERIES A (OTHER REVENUE) 6.25 02/15/2017 745,268
2,490,000 LEWISVILLE TX COMBINATION CONTRACT (SPECIAL ASSESSMENT REVENUE) 6.75 10/01/2032 2,532,380
5,100,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER SERIES E 3 (OTHER REVENUE)+/-ss 5.75 01/01/2038 5,701,545
4,045,000 SABINE RIVER TX AUTHORITY PCR SOUTHWESTERN ELECTRIC COMPANY
(IDR, NATL-RE INSURED) 4.95 03/01/2018 4,123,392
558,200 SOUTHEAST TEXAS HOUSING FINANCE CORPORATION MORTGAGE-BACKED SECURITIES PG
SERIES B (HOUSING REVENUE, GNMA/FNMA INSURED) 6.30 10/01/2035 592,948
856,268 SOUTHEAST TEXAS HOUSING FINANCE CORPORATION MORTGAGE-BACKED SECURITIES
SERIES B (HOUSING REVENUE, GNMA/FNMA INSURED) 6.00 02/01/2036 902,849
535,000 TARRANT COUNTY TX CULTURAL EDUCATION FACILITIES FINANCE CORPORATION
HENDRICK MEDICAL CENTER SERIES A (HCFR, ASSURED GUARANTY) 4.63 09/01/2020 530,436
2,610,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION I SENIER LIEN SERIES D
(NATURAL GAS REVENUE) 5.63 12/15/2017 2,794,736
1,250,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION I SERIES C (UTILITY
REVENUE)+/-ss 1.62 12/15/2026 858,750
13,500,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II BMA INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.71 09/15/2017 12,622,500
3,000,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II LIBOR INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.87 09/15/2017 2,775,750
3,500,000 TEXAS MUNICIPAL GAS ACQUISITION & VARIOUS SENIOR LIEN SERIES B (UTILITY
REVENUE)+/-ss 0.87 12/15/2026 2,513,875
7,500,000 TEXAS PRIVATE ACTIVITY SURFACE TRANSPORTATION CORPORATION (TOLL ROAD
REVENUE) 6.88 12/31/2039 7,743,975
1,215,000 TEXAS STATE PFA CHARTER SCHOOL FINANCE CORPORATION UPLIFT EDUCATION
SERIES A (OTHER REVENUE) 5.75 12/01/2027 1,106,148
880,000 TEXAS STATE PFA CHARTER SCHOOL FINANCE CORPORATION UPLIFT EDUCATION
SERIES A (OTHER REVENUE) 5.88 12/01/2036 770,273
2,260,000 TEXAS STATE PFA COSMOS FOUNDATION SERIES A (OTHER REVENUE) 5.00 02/15/2018 2,049,820
999,027 TRAVIS COUNTY TX HOUSING FINANCE CORPORATION SERIES A (SFMR, GNMA
INSURED)+/-ss 6.35 10/01/2034 1,004,532
84,409,361
--------------
UTAH: 0.51%
1,715,000 SPANISH FORK CITY UT AMERICAN LEADERSHIP ACADEMY (EDUCATIONAL
FACILITIES REVENUE)++ 5.55 11/15/2021 1,553,790
1,000,000 UTAH COUNTY UT CHARTER SCHOOL RONALD WILSON REAGAN SERIES A
(PRIVATE SCHOOL REVENUE) 5.75 02/15/2022 887,660
2,000,000 WEST VALLEY CITY UT MONTICELLO ACADEMY (PRIVATE SCHOOL REVENUE)++ 6.38 06/01/2037 1,702,040
4,143,490
--------------
VIRGIN ISLANDS: 0.19%
435,000 VIRGIN ISLANDS PFA MATCHING FEDERAL LOAN NOTE SERIES A (SEWER REVENUE) 5.25 10/01/2018 442,325
300,000 VIRGIN ISLANDS PFA MATCHING FEDERAL LOAN NOTE SERIES A (SEWER REVENUE) 5.25 10/01/2019 302,796
750,000 VIRGIN ISLANDS PFA MATCHING FUND LOAN DIAGO SERIES A (OTHER REVENUE) 6.75 10/01/2037 787,080
1,532,201
--------------
VIRGINIA: 0.78%
1,090,000 BRISTOL VA UTILITY SYSTEMS (UTILITIES REVENUE, NATL-RE INSURED) 5.25 07/15/2016 1,123,997
1,855,000 MARQUIS CDA VA (OTHER REVENUE) 5.63 09/01/2018 1,500,825
44 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
VIRGINIA (continued)
$ 2,794,000 REYNOLDS CROSSING CDA REYNOLDS CROSSING PROJECT
(SPECIAL ASSESSMENT REVENUE) 5.10% 03/01/2021 $ 2,587,803
1,150,000 WATKINS CENTRE CDA VA (SPECIAL ASSESSMENT REVENUE) 5.40 03/01/2020 1,085,405
6,298,030
--------------
WASHINGTON: 2.27%
2,250,000 PORT SUNNYSIDE WA (AIRPORT REVENUE) 6.63 12/01/2021 2,330,010
605,000 QUINAULT INDIAN NATION WA QUINAULT BEACH SERIES A (OTHER REVENUE,
ACA INSURED) 5.80 12/01/2015 523,488
590,000 TOBACCO SETTLEMENT AUTHORITY WASHINGTON ASSET-BACKED (TOBACCO SETTLEMENT
FUNDED REVENUE) 5.50 06/01/2012 610,449
9,460,000 TOBACCO SETTLEMENT AUTHORITY WASHINGTON ASSET-BACKED (TOBACCO SETTLEMENT
FUNDED REVENUE) 6.50 06/01/2026 9,514,395
5,000,000 WASHINGTON STATE HCFA (HCFR, FHA INSURED) 6.25 08/01/2028 5,316,800
18,295,142
--------------
WEST VIRGINIA: 0.03%
215,000 OHIO COUNTY WV FORT HENRY CENTER FINANCING DISTRICT SERIES A
(TAX INCREMENTAL/ALLOCATION REVENUE) 5.00 06/01/2015 205,841
--------------
WISCONSIN: 2.72%
550,000 MILWAUKEE WI RDA SCIENCE EDUCATION CONSORTIUM PROJECT SERIES A
(OTHER REVENUE) 5.13 08/01/2015 522,544
1,500,000 MILWAUKEE WI RDA SCIENCE EDUCATION CONSORTIUM PROJECT SERIES A
(OTHER REVENUE) 5.63 08/01/2025 1,279,500
1,700,000 MILWAUKEE WI RDA SCIENCE EDUCATION CONSORTIUM PROJECT SERIES A
(OTHER REVENUE) 5.75 08/01/2035 1,365,134
1,500,000 MONROE WI REDEVELOPMENT AUTHORITY MONROE CLINIC INCORPORATED (HCFR) 5.88 02/15/2039 1,504,605
340,000 OSHKOSH WI DON EVANS INCORPORATED PROJECT (IDR, M&I MARSHALL & ISLAY LOC) 5.50 12/01/2011 334,135
2,800,000 WAUKESHA COUNTY WI HOUSING AUTHORITY THE ARBORETUM PROJECT
(HOUSING REVENUE)+/-ss 5.00 12/01/2027 2,863,140
6,300,000 WISCONSIN STATE HEFA AURORA HEALTH CARE INCORPORATED B (HCFR)+/-ss 5.13 08/15/2027 6,478,668
1,000,000 WISCONSIN STATE HEFA CHILDREN'S HOSPITAL WISCONSIN B (HCFR) 5.38 08/15/2024 1,051,350
7,000,000 WISCONSIN STATE HEFA SERIES M (HCFR, NATL-RE INSURED )+/-ss(a) 0.72 06/01/2019 6,545,000
21,944,076
--------------
WYOMING: 0.65%
5,280,000 EVANSVILLE WY POLYPIPE INCORPORATED PROJECT (IDR, JPMORGAN CHASE BANK LOC) 4.65 12/01/2016 5,262,840
--------------
TOTAL MUNICIPAL BONDS & NOTES (COST $784,561,647) 780,444,924
--------------
SHARES YIELD
- ------------ --------
SHORT-TERM INVESTMENTS: 0.99%
MUTUAL FUNDS: 0.97%
7,799,564 WELLS FARGO ADVANTAGE NATIONAL TAX-FREE MONEY MARKET TRUST~++(u) 0.10 7,799,564
--------------
INTEREST
PRINCIPAL RATE
- ------------ --------
US TREASURY BILLS: 0.02%
$ 200,000 US TREASURY BILL## 0.06 03/25/2010 199,971
TOTAL SHORT-TERM INVESTMENTS (COST $7,999,536) 7,999,535
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $792,561,183)* 97.88% 788,444,459
OTHER ASSETS AND LIABILITIES, NET 2.12 17,045,142
------ --------------
TOTAL NET ASSETS 100.00% $ 805,489,601
------ --------------
Wells Fargo Advantage Municipal Income Funds 45
Portfolio of Investments--December 31, 2009 (Unaudited)
MUNICIPAL BOND FUND
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
## Zero coupon security. Interest rate presented is yield to maturity.
(o)(o) Stepped coupon bond. Interest rate provided is yield to maturity.
++ Securities that may be resold to "qualified institutional buyers"under
rule 144A or securities offered pursuant to section 4(2) of the
Securities Act of 1933, as amended.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in
a Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage
Money Market Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of
$7,799,564.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $792,363,454 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 19,988,058
Gross unrealized depreciation (23,907,053)
------------
Net unrealized (depreciation) $ (3,918,995)
The accompanying notes are an integral part of these financial statements.
46 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MUNICIPAL BONDS & NOTES: 97.61%
ALABAMA: 2.80%
$ 2,500,000 ALABAMA SPECIAL CARE FACILITIES FINANCING AUTHORITY BIRMINGHAM AL
SERIES A-1 (HCFR) 5.00% 06/01/2012 $ 2,679,275
20,000,000 CHATOM AL INDUSTRIAL DEVELOPMENT BOARD POWERSOUTH ENERGY COOPERATIVE
PROJECTS SERIES A (ELECTRIC REVENUE, AMBAC INSURED)+/-ss 1.60 11/15/2038 20,000,200
6,000,000 CHATOM AL INDUSTRIAL DEVELOPMENT BOARD REVENUE VARIOUS ALABAMA ELECTRIC A
RMKT 05/30/08 (ELECTRIC REVENUE, GUARANTEE AGREEMENT)+/-ss 4.00 08/01/2037 6,000,780
4,000,000 CHATOM AL INDUSTRIAL DEVELOPMENT BOARD VARIOUS ALABAMA ELECTRIC COOPERATIVE
INCORPORATE PROJECT SERIES C (ELECTRIC REVENUE, AMBAC INSURED)+/-ss(a)(m)(n) 0.64 08/01/2016 3,800,000
1,150,000 EAST AL HEALTH CARE AUTHORITY SERIES B (HCFR REVENUE) 4.63 09/01/2012 1,168,619
3,000,000 HUNTSVILLE AL SOLID WASTE DISPOSAL AUTHORITY (OTHER REVENUE, NATL-RE
INSURED) 5.75 10/01/2012 3,068,730
450,000 JEFFERSON COUNTY AL BOARD OF EDUCATION SERIES A (PROPERTY TAX REVENUE, AGM
INSURED) 4.63 02/15/2012 421,646
500,000 JEFFERSON COUNTY AL SERIES B 8 (SEWER REVENUE, AGM INSURED) 5.25 02/01/2016 475,230
1,000,000 JEFFERSON COUNTY AL SERIES C 10 (SEWER REVENUE, AGM INSURED)+/-ss(a)(m)(n) 0.35 02/01/2042 405,000
8,750,000 JEFFERSON COUNTY AL SERIES C 5 (SEWER REVENUE, XLCA INSURED)+/-ss(a)(m)(n) 0.70 02/01/2040 3,062,500
2,650,000 JEFFERSON COUNTY AL SEWER REVENUE SERIES C 2 (SEWER REVENUE,
FGIC INSURED)+/-ss(a)(m)(n) 0.65 02/01/2042 927,500
525,000 JEFFERSON COUNTY AL SEWER REVENUE SERIES C 9 (SEWER REVENUE,
AGM LOC)+/-ss(a)(m)(n) 0.35 02/01/2042 183,750
7,925,000 JEFFERSON COUNTY AL SUBSERIES B 1 C (SEWER REVENUE, FGIC
INSURED)+/-ss(a)(m)(n) 0.71 02/01/2042 2,773,750
9,755,000 MOBILE AL INDUSTRIAL DEVELOPMENT BOARD ALABAMA POWER COMPANY BARRY
SERIES A (POWER REVENUE)+/-ss 4.75 06/01/2034 10,275,039
1,000,000 UNIVERSITY OF ALABAMA AL SERIES A (COLLEGE & UNIVERSITY REVENUE) 4.00 09/01/2011 1,022,380
800,000 UNIVERSITY OF ALABAMA AL SERIES A (COLLEGE & UNIVERSITY REVENUE) 5.00 09/01/2012 843,688
10,030,000 UNIVERSITY OF ALABAMA AT BIRMINGHAM SERIES B (HCFR, REGIONS BANK LOC)+/-ss 0.95 09/01/2031 10,030,000
380,000 UNIVERSITY OF ALABAMA SERIES A (HCFR) 5.00 09/01/2013 405,316
3,245,000 WEDOWEE CHIMNEY COVE AL IMPROVEMENT DISTRICT CHIMNEY COVE PROJECT
(OTHER REVENUE, WEST GEORGIA NATIONAL BANK LOC)+/-ss 5.00 07/01/2037 3,215,730
70,759,133
--------------
ALASKA: 0.08%
460,000 ALASKA INDUSTRIAL DEVELOPMENT & EXPORT AUTHORITY (UTILITIES REVENUE) 6.00 01/01/2015 462,829
1,515,000 ALASKA STATE INTERNATIONAL AIRPORT SERIES A (AIRPORT & MARINA REVENUE,
NATL-RE INSURED) 5.00 10/01/2017 1,565,071
2,027,900
--------------
ARIZONA: 2.35%
1,000,000 ARIZONA HEALTH FACILITIES AUTHORITY BANNER HEALTH SERIES D (HCFR) 5.00 01/01/2012 1,056,910
21,500,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S HOSPITAL SERIES A
(HCFR)+/-ss 1.32 02/01/2042 19,102,750
12,175,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S HOSPITAL SERIES B
(HCFR)+/-ss 1.17 02/01/2042 10,817,488
1,515,000 ARIZONA SCHOOL FACILITIES STATE SCHOOL TRUST SERIES A (OTHER REVENUE, AMBAC
INSURED) 5.50 07/01/2014 1,661,031
3,640,000 GILBERT AZ WATER RESERVE MUNICIPAL PROPERTY CORPORATION SUB LIEN (WATER
REVENUE) 4.75 10/01/2032 3,639,672
2,000,000 MARICOPA COUNTY AZ IDA CATHOLIC HEALTHCARE WEST SERIES A (HCFR REVENUE) 5.00 07/01/2013 2,120,340
10,635,000 MARICOPA COUNTY AZ IDA CATHOLIC HEALTHCARE WEST SERIES B (HCFR)+/-ss 5.00 07/01/2025 11,180,895
1,490,000 MARICOPA COUNTY AZ IDA CATHOLIC WEST HEALTHCARE SERIES A (HCFR) 5.00 07/01/2016 1,496,422
2,955,000 PIMA COUNTY AZ IDA CONSTELLATION SCHOOLS PROJECT (LEASE REVENUE) 6.38 01/01/2019 2,804,916
1,635,000 PIMA COUNTY AZ IDA GLOBAL WATER RESEARCH LLC PROJECT (WATER REVENUE) 5.50 12/01/2013 1,612,895
430,000 QUAIL CREEK COMMUNITY FACILITIES DISTRIBUTION AZ (PROPERTY TAX REVENUE) 4.85 07/15/2012 419,938
1,890,000 VERRADO AZ COMMUNITY FACILITIES DISTRICT # 1 (PROPERTY TAX REVENUE) 4.85 07/15/2014 1,844,602
1,656,851 WHITE MOUNTAIN AZ APACHE TRIBE FORT APACHE INDIAN RESERVATION FORT APACHE
TIMBER EQUIPMENT LEASE (OTHER REVENUE)(i) 6.25 03/04/2012 1,584,960
59,342,819
--------------
Wells Fargo Advantage Municipal Income Funds 47
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
ARKANSAS: 0.21%
$ 355,000 ARKANSAS STATE DEVELOPMENT FINANCIAL AUTHORITY PUBLIC HEALTH
LABORATORY (HCFR, AMBAC INSURED) 3.90% 12/01/2024 $ 355,082
85,000 FAYETTEVILLE AR (SALES TAX REVENUE, AGM INSURED) 4.13 11/01/2026 87,004
5,000,000 NORTHWEST AK REGIONAL AIRPORT AUTHORITY SERIES A (AIRPORT REVENUE,
REGIONS BANK LOC)+/-ss 1.05 02/01/2021 5,000,000
5,442,086
--------------
CALIFORNIA: 12.35%
2,190,000 ABAG CA FINANCE AUTHORITY FOR NONPROFIT CORPORATIONS GEORGIANA BRUCE
KIRBY PREPARATORY SCHOOL (PRIVATE SCHOOL REVENUE, COMMERCIAL BANK CA
LOC)+/-ss 3.85 02/01/2037 2,208,856
2,185,000 ALAMEDA COUNTY CA COP CAPITAL APPRECIATION (LEASE REVENUE, NATL-RE
INSURED)## 3.89 06/15/2014 1,840,753
6,750,000 BALDWIN PARK CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE)## 4.61 08/01/2014 5,476,545
12,000,000 CALIFORNIA HFA SERIES B (MFHR, GO OF AGENCY, FNMA LOC)+/-ss 0.36 02/01/2038 12,000,000
4,000,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES F (HCFR)+/-ss 5.00 07/01/2027 4,235,800
3,000,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES G (HCFR)+/-ss 5.00 07/01/2028 3,177,780
2,500,000 CALIFORNIA HFFA CEDARS-SINAI MEDICAL CENTER (HCFR) 5.00 08/15/2012 2,626,250
5,700,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES C (MFHR, FNMA LOC)+/-ss 0.36 08/01/2038 5,700,000
75,000,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES D (SFMR, FNMA LOC)+/-ss 0.75 02/01/2040 75,000,000
5,000,000 CALIFORNIA PCFA WASTE MANAGEMENT INCORPORATED PROJECT SERIES A
(RESOURCE RECOVERY REVENUE)+/-ss 5.00 11/01/2038 5,253,100
1,000,000 CALIFORNIA PCFA WASTE MANAGEMENT INCORPORATED PROJECT SERIES C (IDR)+/-ss 6.75 12/01/2027 1,036,670
1,000,000 CALIFORNIA PCFA WEST COMPANY SERIES A (RESOURCE RECOVERY REVENUE,
BANK OF AMERICA NA LOC) 5.13 01/01/2014 1,001,420
885,000 CALIFORNIA RURAL HOME MORTGAGE FINANCE AUTHORITY MORTGAGE-BACKED
SECURITIES PROGRAM SERIES C PUTABLE (SFMR, FNMA/GNMA/FHLMC INSURED)ss 4.10 08/01/2039 884,274
33,000,000 CALIFORNIA STATE DWR POWER SUPPLY SUBSERIES G 5 (WATER REVENUE,
AGM INSURED)+/-ss 0.25 05/01/2016 33,000,000
3,500,000 CALIFORNIA STATE ECONOMIC RECOVERY SERIES A (SALES TAX REVENUE) 5.00 07/01/2016 3,613,400
5,250,000 CALIFORNIA STATEWIDE CDA DISPOSAL REPUBLIC SERVICES SERIES A (RESOURCE
RECOVERY REVENUE) 4.95 12/01/2012 5,376,998
720,000 CALIFORNIA STATEWIDE CDA INTERNATIONAL SCHOOL PENINSULA PROJECT (PRIVATE
SCHOOLS REVENUE) 4.60 11/01/2013 697,104
2,305,000 CULVER CITY CA RDFA (TAX REVENUE, AMBAC INSURED) 5.50 11/01/2014 2,380,028
3,300,000 DINUBA CA REDEVELOPMENT AGENCY MERGED CITY REDEVELOPMENT PROJECT # 2
(TAX/ALLOCATION REVENUE) 4.45 10/01/2011 3,293,631
8,105,000 EUREKA CA USD SERIES A (NATL-RE FGIC INSURED)## 5.56 08/01/2018 5,063,680
4,000,000 FONTANA CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE)## 3.43 12/01/2012 3,620,000
2,825,000 FONTANA CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE) 4.00 12/01/2012 2,883,280
3,900,000 FOOTHILL-EASTERN CORRIDOR AGENCY CA SUB LIEN (TOLL ROAD REVENUE) 5.25 07/15/2010 3,907,293
6,000,000 LAKESIDE CA USD ELECTION 2008 SERIES A (PROPERTY TAX REVENUE)## 3.94 06/01/2014 5,055,900
500,000 LONG BEACH CA BOND FINANCE AUTHORITY SERIES A (UTILITIES REVENUE) 5.00 11/15/2012 527,915
14,000,000 LONG BEACH CA COMMUNITY COLLEGE DISTRICT BOND ANTICIPATION NOTES SERIES A 9.85 01/15/2013 16,828,420
12,570,000 LONG BEACH CA HARBOR REVENUE SERIES A (AIRPORT & MARINA REVENUE) 5.75 05/15/2016 12,788,341
800,000 MONTEREY COUNTY CA CTF REFINANCING PROJECT ( ASSURED GTY INSURED) 4.00 08/01/2013 848,776
16,425,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.79 07/01/2017 14,503,275
15,600,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.82 07/01/2019 12,616,500
1,520,000 OXNARD CA HARBOR DISTRICT (AIRPORT REVENUE, ACA INSURED) 5.65 08/01/2014 1,521,642
2,000,000 PORT HUENEME CA REDEVELOPMENT AGENCY CENTRAL COMMUNITY PROJECT
(TAX/ALLOCATION REVENUE, AMBAC INSURED) 5.50 05/01/2014 2,024,300
2,485,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (MARINA REVENUE, NATL-RE FGIC
INSURED) 5.75 11/01/2014 2,504,607
2,975,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (MARINA REVENUE, NATL-RE FGIC
INSURED) 5.88 11/01/2017 2,986,513
3,070,000 POWAY CA COMMUNITY FACILITIES DISTRICT PARKWAY BUSINESS (SPECIAL
ASSESSMENT) 3.50 08/15/2013 3,081,328
1,200,000 ROSEVILLE NATURAL GAS FINANCE AUTHORITY (UTILITIES REVENUE) 5.00 02/15/2011 1,235,172
5,975,000 SACRAMENTO CA CITY FINANCING AUTHORITY SERIES A (LEASE REVENUE, AMBAC
INSURED) 5.38 11/01/2014 6,355,966
2,725,000 SACRAMENTO CA CITY FINANCING AUTHORITY SERIES B (LEASE REVENUE) 5.00 11/01/2014 2,869,997
48 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
CALIFORNIA (continued)
$ 22,640,000 SACRAMENTO COUNTY CA SANITATION DISTRICT FINANCING AUTHORITY
SUBORDINATE LIEN SACRAMENTO REGULATION C (SEWER REVENUE,
CREDIT AGRICOLE INDOSUEZ LOC)+/-ss 0.23% 12/01/2030 $ 22,640,000
2,000,000 SAN DIEGO COUNTY CA COP (LEASE REVENUE, AMBAC INSURED) 5.63 09/01/2012 2,078,420
1,000,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SERIES 23A
(AIRPORT & MARINA REVENUE, NATL-RE INSURED) 5.50 05/01/2013 1,012,080
1,075,000 SANTA ROSA CA RANCHERIA TACHI YOKUT TRIBE ENTERPRISE (OTHER REVENUE)++ 4.50 03/01/2011 1,073,366
900,000 SAVANNA ELEMENTARY SCHOOL DISTRICT (PROPERTY TAX REVENUE) 4.00 05/01/2012 925,884
2,000,000 SAVANNA ELEMENTARY SCHOOL DISTRICT CAPITAL APPRECIATION
(PROPERTY TAX REVENUE)## 3.32 05/01/2012 1,852,680
500,000 SIERRA CA JOINT COMMUNITY COLLEGE DISTRICT SCHOOL FACILITIES IMPROVEMENT
DISTRICT # 2 CAPITAL APPRECIATION WESTERN NEVADA SERIES A (LEASE REVENUE,
NATL-RE INSURED)## 3.69 08/01/2015 405,330
1,000,000 SOUTHERN CA PUBLIC POWER AUTHORITY NATIONAL GAS PROJECT REVENUE
SERIES A (NATURAL GAS REVENUE) 5.00 11/01/2013 1,068,280
5,000,000 STATE OF CA GO (OTHER REVENUE) 0.43 03/03/2010 5,000,000
775,000 WASHINGTON TOWNSHIP HEALTH CARE DISTRICT SERIES A (NURSING HOME REVENUE) 4.25 07/01/2011 787,509
300,000 WASHINGTON TOWNSHIP HEALTH CARE DISTRICT SERIES A (NURSING HOME REVENUE) 5.00 07/01/2012 310,974
750,000 WASHINGTON TOWNSHIP HEALTH CARE DISTRICT SERIES A (PROPERTY TAX REVENUE) 6.50 08/01/2013 850,538
1,000,000 WASHINGTON TOWNSHIP HEALTH CARE DISTRICT SERIES A (PROPERTY TAX REVENUE) 6.50 08/01/2014 1,154,320
3,000,000 WHITTIER CA HEALTH FACILITY REVENUE PRESBYTERIAN INTERCOMMUNITY HOSPITAL D
(HOSPITAL REVENUE) 5.00 06/01/2013 3,195,900
312,380,795
--------------
COLORADO: 1.80%
195,000 COLORADO ECFA (OTHER REVENUE) 5.75 11/15/2018 205,427
4,925,000 COLORADO HEALTH FACILITIES AUTHORITY (HCFR)+/-ss++ 0.50 11/15/2027 4,925,000
5,000,000 COLORADO HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH SERIES C-2 (HCFR)+/-ss 4.00 10/01/2040 5,080,600
2,900,000 COLORADO HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH SERIES C-8 (HCFR)+/-ss 4.10 09/01/2036 3,018,291
125,000 COLORADO HEALTH FACILITIES HEALTH EVANGELICAL (HCFR) 6.25 12/01/2010 131,644
1,600,000 DENVER CO CITY & COUNTY AIRPORT SERIES A (AIRPORT & MARINA REVENUE,
AMBAC INSURED) 6.00 11/15/2016 1,650,560
665,000 DENVER CO CITY & COUNTY AIRPORT SERIES D (AIRPORT REVENUE,
AMBAC-TCRS INSURED) 7.75 11/15/2013 736,421
1,500,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES A2 (TOLL ROAD REVENUE,
NATL-RE INSURED)+/-ss 5.00 09/01/2039 1,567,380
7,685,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES B (TOLL ROAD REVENUE, NATL-RE
INSURED)## 3.49 09/01/2011 7,259,866
9,500,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES B2 (TOLL ROAD REVENUE,
NATL-RE INSURED)+/-ss 5.00 09/01/2039 9,848,080
1,115,000 MERIDIAN METROPOLITAN DISTRICT CO SERIES A (PROPERTY TAX REVENUE,
RADIAN INSURED) 5.38 12/01/2013 1,136,575
9,415,000 PUBLIC AUTHORITY FOR CO ENERGY NATURAL GAS (UTILITIES REVENUE) 5.75 11/15/2018 9,862,495
45,422,339
--------------
CONNECTICUT: 0.21%
5,310,000 CONNECTICUT STATE HEFA HOSPITAL FOR SPECIAL CARE SERIES D
(HCFR, RADIAN INSURED)+/-ss 4.15 07/01/2037 5,310,000
--------------
DISTRICT OF COLUMBIA: 1.49%
6,400,000 DISTRICT OF COLUMBIA CHILDREN'S RESEARCH CENTER (OTHER REVENUE,
SUNTRUST BANK LOC)+/-ss 0.40 04/01/2038 6,400,000
1,980,000 DISTRICT OF COLUMBIA CONVENTION CENTER AUTHORITY SERIES A (OTHER REVENUE,
AMBAC INSURED) 5.00 10/01/2012 2,157,685
7,800,000 DISTRICT OF COLUMBIA JEWISH CAMPUS LIFE (OTHER REVENUE, SUNTRUST BANK
LOC)+/-ss 0.35 05/01/2027 7,800,000
15,000,000 DISTRICT OF COLUMBIA SIDWELL FRIENDS SCHOOL (COLLEGE & UNIVERSITY REVENUE,
SUNTRUST BANK LOC)+/-ss 0.35 04/01/2035 15,000,000
Wells Fargo Advantage Municipal Income Funds 49
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
DISTRICT OF COLUMBIA (continued)
$ 1,110,000 DISTRICT OF COLUMBIA TOBACCO SETTLEMENT FINANCING CORPORATION
ASSET-BACKED BONDS (TOBACCO SETTLEMENT FUNDED REVENUE) 5.38% 05/15/2010 $ 1,119,824
5,000,000 DISTRICT OF COLUMBIA TOBACCO SETTLEMENT FINANCING CORPORATION
ASSET-BACKED BONDS (TOBACCO SETTLEMENT FUNDED REVENUE) 5.70 05/15/2012 5,160,850
37,638,359
--------------
FLORIDA: 8.72%
2,800,000 ARCADIA FL HOUSING AUTHORITY ARCADIA OAKS ASSOCIATION LIMITED PROJECT (MFHR) 4.25 01/01/2012 2,801,484
3,650,000 AVE MARIA STEWARDSHIP COMMUNITY DEVELOPMENT DISTRICT FL ANTICIPATION
BONDS (SPECIAL ASSESSMENT REVENUE) 4.80 11/01/2012 2,794,659
395,000 BOYNTON BEACH FL (WATER REVENUE, NATL-RE FGIC INSURED) 5.00 11/01/2012 409,556
113,000 BREVARD COUNTY FL HFA SERIES B (HOUSING REVENUE, GNMA INSURED) 6.50 09/01/2022 124,111
500,000 BROWARD COUNTY FL HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH SERVICES
(HCFR, SUNTRUST BANK LOC) 5.50 08/15/2014 512,285
5,000,000 BROWARD COUNTY FL SERIES E (AIRPORT REVENUE, NATL-RE INSURED) 5.25 10/01/2011 5,039,400
6,000,000 CAPE CORAL FL BOND ANTICIPATION NOTES (WATER REVENUE) 6.00 10/01/2011 6,113,880
1,000,000 CITIZENS PROPERTY INSURANCE CORPORATION FL HIGH RISK ACCOUNT SERIES A
(OTHER REVENUE, NATL-RE INSURED) 5.00 03/01/2012 1,034,800
1,400,000 CONNERTON WEST COMMUNITY DEVELOPMENT DISTRICT FL SERIES B
(SPECIAL ASSESSMENT REVENUE)(i) 5.13 05/01/2016 536,452
1,000,000 EMERALD COAST FL UTILITIES AUTHORITY REVENUE SERIES B (UTILITY REVENUE,
NATL-RE FGIC INSURED) 6.25 01/01/2013 1,122,840
530,000 ESCAMBIA COUNTY FL HFA MULTI COUNTY PROGRAM SERIES A2 (HOUSING REVENUE,
GNMA INSURED) 6.95 04/01/2024 547,161
3,710,000 FLORIDA HOUSING FINANCE CORPORATION SERIES 2 (HOUSING REVENUE) 5.00 01/01/2035 3,780,379
5,000,000 FLORIDA HOUSING FINANCE CORPORATION SERIES A1 (HOUSING REVENUE,
GNMA/FNMA/FHA/VA MORTGAGES INSURED) 5.00 07/01/2028 5,291,900
8,000,000 FLORIDA INTERNATIONAL UNIVERSITY ATHLETICS FINANCIAL CORPORATION FOOTBALL
STADIUM PROJECT A (OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 03/01/2033 8,000,000
1,500,000 FLORIDA STATE BOARD OF EDUCATION SERIES B (OTHER REVENUE, NATL-RE FGIC
INSURED) 5.50 07/01/2014 1,591,065
100,000 GULF BREEZE FL LOCAL GOVERNMENT SERIES B (OTHER REVENUE, FGIC INSURED)+/-ss 5.30 12/01/2015 101,130
1,135,000 GULF BREEZE FL LOCAL GOVERNMENT SERIES B (OTHER REVENUE, FGIC INSURED)+/-ss 4.00 12/01/2020 1,078,239
290,000 GULF BREEZE FL REVENUE LOCAL GOVERNMENT LOAN E TEND 12/01/15
(OTHER REVENUE, FGIC INSURED)+/-ss 5.55 12/01/2020 290,589
2,000,000 GULF BREEZE FL SERIES B (OTHER REVENUE, FGIC INSURED)+/-ss 4.25 12/01/2020 1,921,440
2,225,000 GULF BREEZE FL SERIES C (OTHER REVENUE, FGIC INSURED)+/-ss 4.00 12/01/2020 2,210,760
1,070,000 GULF BREEZE FL SERIES C (OTHER REVENUE, FGIC INSURED)+/-ss 4.00 12/01/2020 1,056,186
18,795,000 GULF BREEZE FL SERIES FG & H (OTHER REVENUE)+/-ss 5.00 12/01/2020 18,785,790
4,625,000 HIGHLANDS COUNTY FL HEALTH FACILITIES AUTHORITY HEALTH SERIES I (HCFR) 4.50 11/15/2015 4,877,941
2,000,000 HIGHLANDS COUNTY FL HEALTH FACILITIES AUTHORITY SUNBELT SERIES E (HCFR) 5.00 11/15/2014 2,169,420
4,000,000 HIGHLANDS COUNTY FL HFA ADVENTIST HEALTH SUNBELT SERIES A (HCFR)+/-ss 5.85 11/15/2035 4,300,520
15,000 HIGHLANDS COUNTY FL HFA ADVENTIST HEALTH SYSTEM SERIES G (HCFR) 5.00 11/15/2010 15,564
385,000 HIGHLANDS COUNTY FL HFA ADVENTIST HEALTH SYSTEM SERIES G (HCFR) 5.00 11/15/2010 398,132
9,590,000 HILLSBOROUGH COUNTY FL AVIATION AUTHORITY TAMPA INTERNATIONAL
AIRPORT SERIES A (AIRPORT REVENUE) 5.50 10/01/2015 10,237,133
1,525,000 HILLSBOROUGH COUNTY FL IDA (RESOURCE RECOVERY REVENUE, AMBAC INSURED)+/-ss 5.00 12/01/2034 1,585,741
1,000,000 HILLSBOROUGH COUNTY FL TAMPA INTERNATIONAL AIRPORT SERIES A
(AIRPORT & MARINA REVENUE, NATL-RE INSURED) 5.00 10/01/2013 1,082,020
810,000 HILLSBOROUGH COUNTY PORT DISTRICT SERIES A (AIRPORT & MARINA REVENUE,
NATL-RE INSURED) 5.75 06/01/2015 865,534
1,060,000 HILLSBOROUGH COUNTY PORT DISTRICT SERIES A (AIRPORT & MARINA REVENUE,
NATL-RE INSURED) 5.75 06/01/2016 1,120,113
35,000,000 LAKELAND FL ENERGY SYSTEM REVENUE (ELECTRIC REVENUE)+/-ss 1.42 10/01/2014 35,297,500
2,700,000 LEE COUNTY FL MEMORIAL HEALTH SYSTEM SERIES A (NURSINGHOME REVENUE,
AGM INSURED) 5.75 04/01/2013 2,898,072
750,000 LEE COUNTY FL SOLID WASTE SYSTEM REFUNDING (OTHER REVENUE, NATL-RE INSURED) 5.63 10/01/2013 786,563
50 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
FLORIDA (continued)
$ 12,385,000 LEE COUNTY FL SOLID WASTE SYSTEM REVENUE REFUNDING (OTHER REVENUE,
NATL-RE INSURED) 5.63% 10/01/2012 $ 13,081,409
120,000 MANATEE COUNTY FL HFA SINGLE FAMILY SUB-SERIES 2
(HOUSING REVENUE, GNMA INSURED) 6.50 11/01/2023 122,347
325,000 MARION COUNTY FL SCHOOL BOARD SERIES B (LEASE REVENUE, AMBAC INSURED) 5.00 06/01/2014 360,276
1,700,000 MIAMI DADE COUNTY FL AMT MIAMI INTERNATIONAL AIRPORT SERIES B
(AIRPORT REVENUE, NATL-RE INSURED) 5.00 10/01/2013 1,820,292
1,595,000 MIAMI DADE COUNTY FL AMT MIAMI INTERNATIONAL AIRPORT SERIES B
(AIRPORT REVENUE, XLCA INSURED) 5.00 10/01/2012 1,693,810
3,150,000 MIAMI DADE COUNTY FL AMT MIAMI INTERNATIONAL AIRPORT SERIES D
(AIRPORT REVENUE, NATL-RE INSURED) 5.00 10/01/2013 3,372,894
1,650,000 MIAMI DADE COUNTY FL HEALTH FACILITIES AUTHORITY MIAMI CHILDRENS
SERIES A (HOSPITAL REVENUE, MBIA INSURED)+/-ss 4.55 08/01/2046 1,711,215
4,530,000 MIAMI DADE COUNTY FL SCHOOL BOARD ASSET-BACKED SERIES A (EDUCATIONAL
FACILITIES REVENUE, AMBAC INSURED) 5.00 08/01/2011 4,755,413
4,000,000 MIAMI DADE COUNTY FL SCHOOL BOARD COP (LEASE REVENUE, NATL-RE FGIC INSURED) 5.25 10/01/2015 4,324,200
15,162,679 MIAMI DADE COUNTY FL SCHOOL BOARD MASTER EQUIPMENT LEASE 2
(LEASE REVENUE)(a)(i) 3.59 03/03/2016 14,649,119
7,760,000 MIAMI DADE COUNTY FL SCHOOL BOARD SERIES A (LEASE REVENUE,
NATL-RE FGIC INSURED) 5.00 05/01/2012 8,273,246
2,500,000 MIAMI DADE COUNTY FL SCHOOL BOARD SERIES B (LEASE REVENUE, NATL-RE
INSURED)+/-ss 5.50 05/01/2030 2,586,425
1,450,000 ORANGE COUNTY FL HEALTH FACILITIES AUTHORITY ORLANDO HEALTH INCORPORATED
(NURSEHOME REVENUE) 5.00 10/01/2013 1,549,412
2,000,000 ORANGE COUNTY FL SALES TAX REVENUE REFUNDING SERIES A (SALES TAX REV,
NATL-RE INSURED) 5.13 01/01/2016 2,153,240
2,500,000 PALM BEACH COUNTY FL SCHOOL BOARD SERIES B (LEASE REVENUE, FGIC
INSURED)+/-ss 5.00 08/01/2025 2,602,200
1,700,000 PUNTA GORDA FL HOUSING AUTHORITY GULF BREEZE APARTMENTS SERIES B
(HOUSING REVENUE, HUD INSURED) 4.13 07/01/2010 1,715,929
12,965,000 SOUTHEAST VOLUSIA FL HOSPITAL DISTRICT BERT FISH MEDICAL CENTER ISSUE
(NURSEHOME REVENUE, BANK OF AMERICA N.A. LOC)+/-ss 0.26 05/01/2022 12,965,000
2,000,000 ST. JOHNS COUNTY FL IDA FLAGLER HOSPITAL INCORPORATED SERIES A
(HCFR, NATL-RE INSURED, SUNTRUST BANK LOC)+/-ss 0.35 12/15/2026 2,000,000
475,000 ST. JOHNS COUNTY FL IDA HEALTH CARE GLENMOOR ST. JOHNS PROJECT SERIES A
PREREFUNDED (NURSING HOME REVENUE) 8.00 01/01/2017 484,500
5,000,000 UNIVERSITY OF SOUTH FLORIDA COLLEGE MEDICINE HEALTH FACILITIES LEASE
PROGRAM SERIES A-1 (LEASE REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 07/01/2036 5,000,000
4,500,000 VOLUSIA COUNTY FL IDA WEST VOLUSIA FAMILY YMCA (OTHER REVENUE,
SUNTRUST BANK LOC)+/-ss 0.40 12/01/2027 4,500,000
220,499,286
--------------
GEORGIA: 2.17%
1,000,000 ATLANTA GA SERIES A (WATER REVENUE, NATL-RE FGIC INSURED) 5.50 11/01/2011 1,065,190
8,500,000 ATLANTA GA SERIES A (WATER REVENUE, NATL-RE FGIC INSURED) 5.50 11/01/2012 9,231,935
8,000,000 ATLANTA GA SERIES A (WATER REVENUE, NATL-RE FGIC INSURED) 5.50 11/01/2013 8,788,800
5,000,000 ATLANTA GA SERIES B 2 (AIRPORT REVENUE, NATL-RE INSURED)+/-ss 2.25 01/01/2030 5,000,000
2,500,000 ATLANTA GA SERIES C (AIRPORT REVENUE, NATL-RE FGIC INSURED) 6.13 01/01/2012 2,531,675
1,432,161 DALTON GA SCHOOL DISTRICT EQUIPMENT LEASE PURCHASE # 996-021203(i) 4.20 08/01/2013 1,435,125
530,497 DALTON GA SCHOOL DISTRICT EQUIPMENT LEASE PURCHASE # 996-021203 SERIES B(i) 4.20 08/01/2013 531,049
426,080 GAINESVILLE GA SCHOOL DISTRICT EQUIPMENT LEASE PURCHASE(i) 4.20 03/01/2013 426,596
5,000,000 GEORGE L SMITH II GA DOMED STADIUM PROJECT (RECREATIONAL REVENUE,
NATL-RE INSURED) 5.75 07/01/2014 5,109,350
4,000,000 GEORGE L SMITH II GA DOMED STADIUM PROJECT (RECREATIONAL REVENUE,
NATL-RE INSURED) 5.75 07/01/2015 4,070,360
5,265,210 HENRY COUNTY GA MASTER STATE MUNICIPAL LOAN 144A (OTHER REVENUE) 4.09 04/24/2016 5,405,686
820,000 MAIN STREET GA NATURAL GAS INCORPORATED SERIES B (ELECTRIC REVENUE) 5.00 03/15/2012 858,130
2,250,000 MAIN STREET NATURAL GAS INCORPORATED GEORGIA SERIES B (NATURAL GAS REVENUE) 5.00 03/15/2015 2,342,858
Wells Fargo Advantage Municipal Income Funds 51
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
GEORGIA (continued)
$ 2,000,000 MAIN STREET NATURAL GAS INCORPORATED GEORGIA SERIES B (NATURAL GAS REVENUE) 5.00% 03/15/2011 $ 2,062,220
1,000,000 PIKE COUNTY GA SCHOOL DISTRICT (PROPERTY TAX REVENUE, AMBAC INSURED) 5.70 02/01/2016 1,004,110
1,400,000 PUBLIC GAS PARTNERS INCORPORATED GEORGIA SERIES A (NATURAL GAS REVENUE) 5.00 10/01/2013 1,540,840
3,000,000 PUBLIC GAS PARTNERS INCORPORATED GEORGIA SERIES A (NATURAL GAS REVENUE) 5.00 10/01/2014 3,310,890
250,986 PUTNAM COUNTY GA SCHOOL DISTRICT (LEASE REVENUE)(i) 4.20 03/01/2013 251,290
54,966,104
--------------
GUAM: 0.02%
500,000 GUAM GOVERNMENT LIMITED OBLIGATION SECTION 30 SERIES A (OTHER REVENUE) 5.00 12/01/2012 528,750
--------------
HAWAII: 0.06%
1,500,000 STATE OF HAWAII AIRPORTS SYSTEM REVENUE AMT REFUNDING SERIES B
(AIRPORT REVENUE, NATL-RE FGIC INSURED) 6.50 07/01/2014 1,538,265
--------------
IDAHO: 0.13%
3,180,000 IDAHO HOUSING & FINANCE ASSOCIATION SERIES A (HOUSING REVENUE) 6.25 07/01/2038 3,277,181
--------------
ILLINOIS: 5.13%
1,050,000 AURORA IL (TAX REVENUE) 5.00 12/30/2010 1,052,331
1,560,000 AURORA IL SERIES B (TAX REVENUE) 4.90 12/30/2011 1,546,974
200,000 CHICAGO IL (AIRPORT REVENUE, BHAC CREDIT) 5.50 01/01/2016 200,378
600,000 CHICAGO IL CHARTER SCHOOL PROJECT (PRIVATE SCHOOLS REVENUE) 4.50 12/01/2012 602,910
360,000 CHICAGO IL CHARTER SCHOOL PROJECT (PRIVATE SCHOOLS REVENUE) 5.00 12/01/2014 363,892
9,120,000 CHICAGO IL DEVELOPMENT FINANCE AUTHORITY PEOPLES GAS LIGHT COKE
SERIES B (IDR)+/-ss 3.75 02/01/2033 9,165,326
2,580,000 CHICAGO IL HOUSING AUTHORITY (HOUSING REVENUE, AGM HUD LOAN) 5.00 07/01/2013 2,840,477
2,265,000 CHICAGO IL HOUSING AUTHORITY (HOUSING REVENUE, AGM HUD LOAN) 5.00 07/01/2014 2,515,396
385,000 CHICAGO IL JUNIOR LIEN NEAR SOUTH REDEVELOPMENT PROJECT SERIES A
(TAX REVENUE, ACA INSURED) 5.00 11/15/2010 390,136
1,230,000 CHICAGO IL MOTOR FUEL TAX REVENUE (FUEL SALES TAX REVENUE, AMBAC INSURED) 5.38 01/01/2014 1,319,347
14,675,000 CHICAGO IL O'HARE INTERNATIONAL AIRPORT SECOND LIEN GENERAL AIRPORT
(AIRPORT & MARINA REVENUE, AMBAC INSURED) 5.50 01/01/2018 14,852,274
1,900,000 CHICAGO IL SERIES A (PROPERTY TAX REVENUE, NATL-RE INSURED) 5.38 01/01/2013 2,022,189
2,725,000 CICERO IL SERIES A (PROPERTY TAX, XLCA INSURED) 5.00 01/01/2015 2,715,490
380,000 COOK & WILL IL COUNTY HIGH SCHOOL DISTRICT 206 (PROPERTY TAX, ASSURED GTY) 4.00 12/15/2012 396,880
4,195,000 COOK & WILL IL COUNTY HIGH SCHOOL DISTRICT 206 (PROPERTY TAX, ASSURED GTY) 4.00 12/15/2013 4,393,256
2,540,000 COOK & WILL IL COUNTY HIGH SCHOOL DISTRICT 206 (PROPERTY TAX, ASSURED GTY) 4.50 12/15/2014 2,689,454
3,500,000 IL FINANCE AUTHORITY ADVOCATE HEALTH SUBSERIES C3B (HCFR)+/-ss 4.38 11/01/2038 3,619,175
1,480,000 IL FINANCE AUTHORITY NEW MONEY COMMUNITY REHABILITATION SERIES A
(HCFR, GO OF PARTICIPANTS) 4.75 07/01/2010 1,480,577
1,440,000 IL FINANCE AUTHORITY NEW MONEY COMMUNITY REHABILITATION SERIES A
(HCFR, GO OF PARTICIPANTS) 4.80 07/01/2011 1,437,120
1,000,000 IL FINANCE AUTHORITY NEW MONEY COMMUNITY REHABILITATION SERIES A
(HCFR, GO OF PARTICIPANTS) 4.85 07/01/2012 998,140
670,000 IL FINANCE AUTHORITY REVENUE MEMORIAL HEALTH SYSTEM (HCFR) 4.00 04/01/2013 696,164
655,000 IL FINANCE AUTHORITY REVENUE MEMORIAL HEALTH SYSTEM (HCFR) 4.00 04/01/2014 677,886
555,000 IL FINANCE AUTHORITY REVENUE MEMORIAL HEALTH SYSTEM (HCFR) 4.00 04/01/2015 567,110
31,610,000 IL FINANCE AUTHORITY REVENUE PUT OPTION MERCY ALLIANCE PJ
(HCFR, M&I MARSHALL & ILSLEY LOC)+/-ss 1.00 02/15/2035 31,610,000
8,000,000 IL FINANCE AUTHORITY REVENUE RESURRECTION HEALTH (HCFR) 5.00 05/15/2013 8,328,560
3,250,000 IL FINANCE AUTHORITY REVENUE RESURRECTION HEALTH (HCFR) 5.00 05/15/2014 3,356,373
900,000 IL FINANCE AUTHORITY REVENUE ROOSEVELT UNIVERSITY PROJECT
(COLLEGE & UNIVERSITY REVENUE) 5.00 04/01/2015 913,203
1,430,000 IL FINANCE AUTHORITY REVENUE UNIVERSITY OF CHICAGO SYSTEM
(HCFR, NATL-RE INSURED) 5.00 08/15/2015 1,490,932
1,050,000 IL HEALTH FACILITIES AUTHORITY DECATUR MEMORIAL HOSPITAL (HCFR) 5.50 10/01/2010 1,073,772
52 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
ILLINOIS (continued)
$ 500,000 IL METHODIST MEDICAL CENTER (HFFA REVENUE, NATL-RE INSURED) 5.50% 11/15/2010 $ 501,115
2,360,000 ILLINOIS FINANCE AUTHORITY DEPAUL UNIVERSITY SERIES B
(COLLEGE & UNIVERSITY REVENUE, XLCA INSURED)+/-ss 3.50 10/01/2026 2,388,226
5,000,000 ILLINOIS FINANCE AUTHORITY PRAIRIE POWER (OTHER REVENUE)+/-ss 3.25 07/01/2042 5,013,600
1,625,000 ILLINOIS FINANCE AUTHORITY WASTE MANAGEMENT INCORPORATED PROJECT (IDR) 5.05 01/01/2010 1,625,000
665,000 NORTH CHICAGO IL (PROPERTY TAX REVENUE, NATL-RE FGIC INSURED) 5.75 01/01/2010 665,000
5,800,000 UNIVERSITY OF IL COP INFRASTRUCTURE PROJECT (LEASE REVENUE, AMBAC INSURED) 5.00 08/15/2013 6,318,114
6,175,000 UNIVERSITY OF IL COP INFRASTRUCTURE PROJECT (LEASE REVENUE, AMBAC INSURED) 5.00 08/15/2014 6,755,203
150,000 UPPER IL RIVER VALLEY DEVELOPMENT AUTHORITY MORRIS HOSPITAL (HCFR) 6.05 12/01/2011 156,027
3,600,000 WINNEBAGO COUNTY IL SCHOOL DISTRICT NO 122 CAPITAL APPRECIATION
(PROPERTY TAX REVENUE, AGM INSURED)## 3.12 01/01/2014 3,180,672
129,918,679
--------------
INDIANA: 0.72%
765,000 BEECH GROVE IN SCHOOL BUILDING CORPORATION FIRST MORTGAGE
(LEASE REVENUE, NATL-RE INSURED) 6.25 07/05/2016 879,245
2,500,000 COUNTY OF JASPER IN (PCR, NATL-RE INSURED) 5.20 06/01/2013 2,666,725
4,040,000 IN BOND BANK BMA INDEX SERIES B (OTHER REVENUE)+/-ss 0.74 10/15/2010 3,963,240
2,000,000 IN BOND BANK COMMON FUND FDG-B (OTHER REVENUE, NATL-RE INSURED) 5.00 02/01/2013 2,126,800
2,000,000 IN PORT COMMISSION CARGILL INCORPORATED PROJECT (IDR) 4.10 05/01/2012 2,074,940
5,255,000 INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK SERIES 2005-E
(LEASE REVENUE, AMBAC INSURED)+/-ss 5.00 01/01/2014 5,888,228
410,000 JEFFERSONVILLE IN BUILDING CORPORATION SERIES A (LEASE REVENUE) 4.00 08/15/2012 428,909
195,000 JEFFERSONVILLE IN BUILDING CORPORATION SERIES B (LEASE REVENUE) 4.00 08/15/2012 203,993
18,232,080
--------------
IOWA: 1.24%
4,300,000 IA STUDENT LOAN LIQUIDITY CORPORATION SERIES 1 (SLMA) 4.00 12/01/2013 4,402,168
20,000,000 IA STUDENT LOAN LIQUIDITY CORPORATION SERIES 3 (SLMA) 5.25 12/01/2024 20,623,000
180,000 TOBACCO SETTLEMENT AUTHORITY IA ASSET-BACKED SERIES B
(TOBACCO SETTLEMENT FUNDED REVENUE) 5.50 06/01/2012 192,793
460,000 TOBACCO SETTLEMENT AUTHORITY IA TOBACCO SETTLEMENT REVENUE ASSET-BACKED
SERIES B (EXCISE TAX REVENUE LOC) 5.50 06/01/2014 492,692
5,000,000 WATERLOO IA COMMUNITY SCHOOL DISTRICT BOND ANTICIPATION NOTES
(SALES TAX REVENUE) 3.75 05/01/2012 5,180,550
500,000 XENIA RURAL WATER DISTRICT IA WATER (WATER REVENUE, CIFG INSURED) 4.00 12/01/2015 439,160
31,330,363
--------------
KANSAS: 1.23%
12,500,000 BURLINGTON KS ENVIRONMENTAL KANSAS CITY POWER & LIGHT
(INDUSTRIAL REVENUE, XLCA INSURED)+/-ss 5.25 12/01/2023 13,324,250
5,000,000 BURLINGTON KS KANSAS CITY POWER & LIGHT SERIES B (IDR, FGIC INSURED)+/-ss 5.38 09/01/2035 5,348,850
205,000 CITY OF OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT
(TAX INCREMENTAL REVENUE) 5.00 09/01/2010 203,729
225,000 CITY OF OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT
(TAX INCREMENTAL REVENUE) 5.00 03/01/2011 221,272
200,000 CITY OF OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT
(TAX INCREMENTAL REVENUE) 5.00 09/01/2011 195,346
310,000 COUNTIES OF SEDWICK & SHAWNEE KS SERIES B5 (HOUSING REVENUE, GNMA INSURED) 4.10 12/01/2023 307,759
1,800,000 OLATHE KS OLATHE MEDICAL CENTER SERIES A (HOSPITAL REVENUE)+/-ss 4.13 09/01/2037 1,868,112
100,000 OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT
(TAX INCREMENTAL REVENUE) 5.00 03/01/2012 96,809
100,000 OLATHE KS SPECIAL OBLIGATION WEST VILLAGE CENTER PROJECT
(TAX INCREMENTAL REVENUE) 5.00 09/01/2012 96,137
1,750,000 WICHITA KS FACILITIES IMPROVEMENT SERIES III A (HCFR) 5.00 11/15/2013 1,897,858
Wells Fargo Advantage Municipal Income Funds 53
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
KANSAS (continued)
$ 2,280,000 WICHITA KS HOSPITAL REVENUE VIA CHRISTI HEALTH SYSTEM (HCFR) 5.00% 11/15/2013 $ 2,472,637
3,950,000 WYANDOTTE COUNTY KS CITY UNIFIED GOVERNMENT REFERENDUM SALES TAX
SECOND LIEN AREA B (SALES TAX REVENUE) 5.00 12/01/2020 3,982,035
1,020,000 WYANDOTTE COUNTY KS CITY UNITED GOVERNMENT SPECIAL OBLIGATION SALES TAX
SECOND LIEN AREA B (SALES TAX REVENUE) 4.75 12/01/2016 1,041,583
31,056,377
--------------
KENTUCKY: 1.57%
8,000,000 ALLEN COUNTY KY CAMP COURAGEOUS PROJECT (OTHER REVENUE, SUNTRUST BANK
LOC)+/-ss 0.35 12/01/2025 8,000,000
2,475,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KENTUCKY SERIES A
(AIRPORT REVENUE, NATL-RE INSURED) 5.63 03/01/2014 2,569,199
1,710,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KENTUCKY SERIES A
(AIRPORT REVENUE, NATL-RE INSURED) 5.63 03/01/2015 1,764,224
3,840,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KENTUCKY SERIES A
(AIRPORT REVENUE, XLCA INSURED) 5.00 03/01/2012 3,977,702
2,740,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KENTUCKY SERIES A
(AIRPORT REVENUE, XLCA INSURED) 5.00 03/01/2013 2,854,861
5,830,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KENTUCKY SERIES B
(AIRPORT REVENUE, XLCA INSURED) 5.00 03/01/2012 6,039,064
9,000,000 KY ECONOMIC DEVELOPMENT FINANCE AUTHORITY CATHOLIC HEALTH SERIES B
(HCFR)+/-ss 5.00 05/01/2039 9,798,480
1,500,000 KY ECONOMIC DEVELOPMENT FINANCE AUTHORITY SERIES SAINT ELIZABETH CLASS A
(HCFR) 4.00 05/01/2013 1,570,995
1,000,000 LOUISVILLE & JEFFERSON COUNTY KY METRO GOVERNMENT ENVIRONMENTAL FACILITIES
LOUISVILLE GAS & ELECTRIC COMPANY PROJECT (OTHER REVENUE)+/-ss 5.63 06/01/2033 1,070,140
2,000,000 LOUISVILLE & JEFFERSON COUNTY KY REGIONAL AIRPORT AUTHORITY SERIES A
(AIRPORT REVENUE, AGM INSURED) 5.75 07/01/2015 2,084,220
39,728,885
--------------
LOUISIANA: 3.17%
11,800,000 LAFAYETTE LA ECONOMIC DEVELOPMENT AUTHORITY STIRLING LAFAYETTE LLC
PROJECT (OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 02/01/2038 11,800,000
15,000,000 LOUISIANA LOCAL GOVERNMENT ENVIRONMENTAL FACILITIES CDA LASHIP LLC PROJECT
(IDR, REGIONS BANK LOC)+/-ss 0.95 09/01/2036 15,000,000
1,500,000 LOUISIANA LOCAL GOVERNMENT LCTCS FACILITIES CORPORATION PROJECT SERIES A
(COLLEGE & UNIVERSITY REVENUE) 4.00 10/01/2013 1,600,545
1,500,000 LOUISIANA LOCAL GOVERNMENT LCTCS FACILITIES CORPORATION PROJECT SERIES A
(COLLEGE & UNIVERSITY REVENUE) 4.00 10/01/2014 1,598,550
2,830,000 LOUISIANA PFA FRANCISCAN SERIES B (HCFR) 5.00 07/01/2013 2,975,377
12,140,000 LOUISIANA PFA GCGK INVESTMENTS LLC PROJECT (INDUSTRIAL REVENUE,
AMSOUTH BANK LOC)+/-ss 0.95 05/01/2026 12,140,000
160,000 LOUISIANA PFA REVENUE ARCHDIOCESE OF NEW ORLEANS PROJECT (HCFR, CIFG
INSURED) 5.00 07/01/2010 162,099
4,445,000 LOUISIANA PUBLIC FACILITIES AUTHORITY CHRISTUS HEALTH C3 (OTHER REVENUE,
AGM INSURED) 5.00 07/01/2013 4,764,284
3,000,000 LOUISIANA PUBLIC FACILITIES AUTHORITY CLECO POWER LLC PROJECT (IDR)+/-ss 7.00 12/01/2038 3,222,420
3,750,000 LOUISIANA STATE CITIZENS PROPERTY INSURANCE CORPORATION SERIES B (PROPERTY
TAX REVENUE, AMBAC INSURED) 5.00 06/01/2012 3,926,175
1,120,000 NEW ORLEANS LA AVIATION BOARD GULF OPPORTUNITY ZONE CONSOLIDATED RENTAL
CAR-A (AIRPORT & MARINA REVENUE) 4.63 01/01/2015 1,111,376
54,000 NEW ORLEANS LA HOME MORTGAGE AUTHORITY SPECIAL OBLIGATIONS (OTHER REVENUE) 6.25 01/15/2011 56,817
1,000,000 PARISH OF IBERVILLE LA DOW CHEMICAL (IDR)+/-ss 5.50 06/01/2029 1,009,310
910,000 PORT NEW ORLEANS LA BOARD COMMERCE SPECIAL PROJECT CG RAILWAY INCORPORATED
(AIRPORT & MARINA REVENUE, NATL-RE INSURED) 5.25 08/15/2013 982,764
2,650,000 RAPIDES FINANCE AUTHORITY REVENUE LA CLECO POWER LLC PROJECT (OTHER
REVENUE)+/-ss 5.25 11/01/2037 2,756,822
2,000,000 RAPIDES FINANCE AUTHORITY REVENUE LA CLECO POWER LLC PROJECT (RESOURCE
RECOVERY REVENUE)+/-ss 6.00 10/01/2038 2,095,840
5,000,000 SAINT TAMMANY PARISH LA SLIDELL DEVELOPMENT COMPANY LLC PROJECT A
(INDUSTRIAL REVENUE, REGIONS BANK)+/-ss 0.95 05/01/2038 5,000,000
54 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
LOUISIANA (continued)
$ 1,000,000 TANGIPAHOA PARISH LA HOSPITAL SERVICE DISTRICT # 1 NORTH OAKS MEDICAL
CENTER PROJECT A (IHCFR) 5.00% 02/01/2012 $ 1,017,580
5,000,000 WEST BATON ROUGE PARISH LA INDUSTRIAL DISTRICT # 3 DOW CHEMICAL (IDR)+/-ss 5.50 12/01/2023 5,028,300
4,000,000 WEST BATON ROUGE PARISH LA INDUSTRIAL DISTRICT # 3 DOW CHEMICAL
(INDUSTRIAL REVENUE)+/-ss 5.00 10/01/2021 4,017,760
80,266,019
--------------
MAINE: 0.28%
4,425,000 MAINE EDUCATIONAL LOAN AUTHORITY CLASS A SERIES A-1 (OTHER REVENUE, ASSURED
GUARANTY) 4.63 12/01/2013 4,662,446
2,255,000 MAINE EDUCATIONAL LOAN AUTHORITY CLASS A SERIES A-1 (OTHER REVENUE, ASSURED
GUARANTY) 4.95 12/01/2014 2,412,174
7,074,620
--------------
MARYLAND: 1.33%
2,500,000 MARYLAND BALTIMORE & WA INTERNATIONAL AIRPORT SERIES B (PARKING REVENUE,
AMBAC INSURED) 5.25 03/01/2014 2,630,925
400,000 MARYLAND COMMUNITY DEVELOPMENT ADMINISTRATION RESIDENTIAL SERIES H
(HOUSING REVENUE) 4.55 09/01/2012 403,384
1,420,000 MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY SERIES A (SALES TAX
REVENUE) 5.13 12/01/2011 1,423,962
17,295,000 MARYLAND STATE HEFA SHEPPARD PRATT SERIES B (HCFR, SUNTRUST BANK LOC)+/-ss 0.35 07/01/2028 17,295,000
12,000,000 MARYLAND STATE HEFA UNIVERSITY OF MARYLAND MEDICAL SYSTEM SERIES E (HCFR,
SUNTRUST BANK LOC)+/-ss 0.30 07/01/2041 12,000,000
33,753,271
--------------
MASSACHUSETTS: 0.76%
225,000 MASSACHUSETTS DEVELOPMENT FINANCE AGENCY DEVENS ELECTRIC SYSTEMS (ELECTRIC
REVENUE) 5.13 12/01/2011 235,634
1,500,000 MASSACHUSETTS HEFA CARE GROUP SERIES E-2 (HCFR) 5.00 07/01/2012 1,559,250
1,725,000 MASSACHUSETTS HEFA CARITAS CHRISTIAN OBLIGATION SERIES B (HCFR) 6.50 07/01/2012 1,785,220
3,000,000 MASSACHUSETTS HEFA NORTHEASTERN UNIVERSITY SERIES T-2
(COLLEGE & UNIVERSITY REVENUE)+/-ss 4.10 10/01/2037 3,066,270
1,000,000 MASSACHUSETTS HEFA SERIES T-1 NORTHEASTERN UNIVERSITY
(COLLEGE & UNIVERSITY REVENUE)+/-ss 4.13 10/01/2037 1,030,470
1,870,000 MASSACHUSETTS HOUSING FINANCE AGENCY SERIES A (HOSPITAL REVENUE, AGM
INSURED) 4.45 07/01/2011 1,909,345
1,440,000 MASSACHUSETTS INDUSTRIAL FINANCE AGENCY OGDEN HAVERHILL SERIES A
(OTHER REVENUE) 5.35 12/01/2010 1,456,517
1,000,000 MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY NUCLEAR MIX # 1 SERIES 1
(ELECTRIC REVENUE, NATL-RE INSURED)+/-ss(a)(m)(n) 0.14 07/01/2014 898,750
6,500,000 MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY PROJECT # 6 SERIES 1
(ELECTRIC REVENUE, NATL-RE INSURED)+/-ss(a)(m)(n) 0.24 07/01/2019 5,841,875
1,140,000 MASSACHUSETTS STATE PORT AUTHORITY DELTA AIRLINES INCORPORATED PROJECT
SERIES A (LEASE REVENUE, AMBAC INSURED) 5.50 01/01/2016 1,006,267
520,000 MASSACHUSETTS STATE PORT AUTHORITY DELTA AIRLINES INCORPORATED PROJECT
SERIES A (LEASE REVENUE, AMBAC INSURED) 5.50 01/01/2017 451,339
19,240,937
--------------
MICHIGAN: 6.52%
780,000 COMSTOCK PARK MI PUBLIC SCHOOLS SCHOOL BUILDING & SITE (PROPERTY TAX
REVENUE, FGIC INSURED) 7.88 05/01/2011 821,200
2,750,000 DETROIT CITY MI SCHOOL DISTRICT SCHOOL BUILDING & SITE IMPROVEMENT SERIES A
(PRIVATE SCHOOL REVENUE, FGIC INSURED) 5.00 05/01/2013 2,952,153
4,500,000 DETROIT MI CAPITAL IMPROVEMENT LIMITED TAX SERIES A 1 (OTHER REVENUE) 5.00 04/01/2013 4,378,815
10,370,000 DETROIT MI CITY SCHOOL DISTRICT (PROPERTY TAX REVENUE, FSA INSURED)+/-ss 0.30 05/01/2029 10,370,000
2,540,000 DETROIT MI COBO HALL (TAX REVENUE, NATL-RE INSURED) 5.00 09/30/2011 2,633,345
Wells Fargo Advantage Municipal Income Funds 55
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MICHIGAN (continued)
$ 3,350,000 DETROIT MI COBO HALL (TAX REVENUE, NATL-RE INSURED) 5.00% 09/30/2012 $ 3,511,872
4,320,000 DETROIT MI CONVENTION FACILITY COBO HALL (TAX REVENUE, NATL-RE INSURED) 5.00 09/30/2013 4,542,566
2,505,000 DETROIT MI WATER SUPPLY SYSTEMS SENIOR LIEN SERIES B (WATER REVENUE,
NATL-RE INSURED)+/-ss 5.00 07/01/2013 2,660,861
1,790,000 FLINT MI INTERNATIONAL ACADEMY (OTHER REVENUE) 5.00 10/01/2017 1,639,586
2,965,000 HURON VALLEY MI SCHOOL DISTRICT (PROPERTY TAX REVENUE, NATL-RE INSURED) 5.00 05/01/2015 3,296,991
7,500,000 KENT HOSPITAL FINANCE AUTHORITY SERIES A (HCFR)+/-ss 4.25 01/15/2047 7,730,625
3,445,000 KENT HOSPITAL FINANCE AUTHORITY SPECTRUM HEALTH SERIES A (HFFA
REVENUE)+/-ss 5.00 01/15/2047 3,614,563
27,190,000 MICHIGAN HOUSING DEVELOPMENT AUTHORITY SERIES B (HOUSING REVENUE)+/-ss 4.25 06/01/2038 27,190,000
8,450,000 MICHIGAN KENT HOSPITAL FINANCE AUTHORITY SPECTRUM HEALTH SERIES A
(HOSPITAL REVENUE)+/-ss 5.50 01/15/2047 9,134,366
275,000 MICHIGAN MUNICIPAL BOND AUTHORITY LOCAL GOVERNMENT LOAN PROGRAM
SERIES A (HCFR, AMBAC INSURED) 5.00 05/01/2013 282,546
1,250,000 MICHIGAN MUNICIPAL BOND AUTHORITY LOCAL GOVERNMENT LOAN PROGRAM SERIES B
GROUP A (OTHER REVENUE, AMBAC INSURED) 5.00 12/01/2012 1,293,100
3,535,000 MICHIGAN MUNICIPAL BOND AUTHORITY LOCAL GOVERNMENT LOAN PROGRAM SERIES B
GROUP A (OTHER REVENUE, AMBAC INSURED) 5.75 12/01/2014 3,746,499
300,000 MICHIGAN MUNICIPAL BOND AUTHORITY LOCAL GOVERNMENT LOAN PROGRAM SERIES C
(OTHER REVENUE, AMBAC INSURED) 5.00 05/01/2013 308,232
7,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY STUDENT AID NOTES DETROIT SERIES 2009B
(OTHER REVENUE) 6.00 01/20/2010 7,007,840
7,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY STUDENT AID NOTES SERIES D
(OTHER REVENUE) 9.50 08/20/2010 6,990,200
2,500,000 MICHIGAN STATE BUILDING AUTHORITY SERIES I (LEASE REVENUE, AGM INSURED) 5.25 10/15/2014 2,720,775
180,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY CHARITY OBLIGATION GROUP SERIES A
(HCFR) 5.13 11/01/2029 182,513
5,000,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY HEALTHCARE EQUIPMENT LOAN PROGRAM
(HCFR, FIFTH THIRD BANK LOC)+/-ss 0.55 12/01/2032 5,000,000
4,500,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY HEALTHCARE EQUIPMENT LOAN PROGRAM
SERIES C SUBSERIES C-15 (HCFR, FIFTH THIRD BANK LOC)+/-ss 0.55 12/01/2032 4,500,000
1,435,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY MCLAREN HEALTH CARE (HCFR) 5.00 05/15/2013 1,509,290
4,500,000 MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY LIMITED GREENWOOD VILLA
PROJECT (LOCAL OR GTD HOUSING REVENUE, AGM INSURED) 4.75 09/15/2017 4,801,185
4,000,000 MICHIGAN STATE STRATEGIC FUND DETROIT ED (ELECTRICAL POWER REVENUE)+/-ss 3.05 08/01/2024 4,035,440
12,500,000 WAYNE CHARTER COUNTY MI DETROIT METROPOLITAN WAYNE COUNTY SERIES A
(AIRPORT REVENUE, NATLE-RE INSURED) 5.25 12/01/2013 12,580,625
9,970,000 WAYNE CHARTER COUNTY MI DETROIT METROPOLITAN WAYNE COUNTY SERIES A
(AIRPORT REVENUE, NATLE-RE INSURED) 5.25 12/01/2014 10,030,119
1,500,000 WAYNE COUNTY MI DETROIT METROPOLITAN AIRPORT JUNIOR LIEN (AIRPORT REVENUE,
NATL-RE FGIC INSURED) 5.00 12/01/2012 1,535,625
3,365,000 WAYNE COUNTY MI DETROIT METROPOLITAN AIRPORT JUNIOR LIEN (AIRPORT REVENUE,
NATL-RE FGIC INSURED) 5.00 12/01/2013 3,419,850
1,110,000 WAYNE COUNTY MI DETROIT METROPOLITAN AIRPORT MBIA (AIRPORT & MARINA
REVENUE, AGC-ICC, MBIA-RE, FGIC INSURED) 5.00 12/01/2015 1,190,220
7,045,000 WAYNE COUNTY MI DETROIT METROPOLITAN WAYNE COUNTY AIRPORT (AIRPORT & MARINA
REVENUE, NATL-RE INSURED) 5.25 12/01/2016 7,019,286
1,075,000 WESTERN TOWNSHIPS MI UTILITIES AUTHORITY SEWAGE DISPOSAL SYSTEMS
(PROPERTY TAX REVENUE) 4.00 01/01/2013 1,146,369
1,100,000 WESTERN TOWNSHIPS MI UTILITIES AUTHORITY SEWAGE DISPOSAL SYSTEMS
(PROPERTY TAX REVENUE) 4.00 01/01/2014 1,181,972
164,958,629
--------------
MINNESOTA: 2.34%
13,995,000 BECKER MN PCR NORTHERN STATES POWER SERIES A (IDR)+/-ss 8.50 03/01/2019 15,794,057
8,400,000 BECKER MN PCR NORTHERN STATES POWER SERIES B (IDR)+/-ss 8.50 09/01/2019 9,465,960
500,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT # 112 COP SERIES B (LEASE REVENUE) 3.00 12/01/2012 516,265
515,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT # 112 COP SERIES B (LEASE REVENUE) 3.00 12/01/2013 530,393
530,000 CHASKA MN INDEPENDENT SCHOOL DISTRICT # 112 COP SERIES B (LEASE REVENUE) 3.00 12/01/2014 539,794
56 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MINNESOTA (continued)
$ 19,295,000 DULUTH MN ECONOMIC DEVELOPMENT AUTHORITY BENEDECTINE HEALTH CENTER
(HCFR, BHAC-CR AMBAC INSURED) 6.00% 02/15/2020 $ 19,360,796
290,000 MARSHALL MN MEDICAL CENTER AVERA MARSHALL REGIONAL MEDICAL CENTER PROJECT
(HCFR) 4.50 11/01/2011 307,133
9,900,000 MINNEAPOLIS & ST. PAUL MN HOUSING & RDA HEALTHSPAN SERIES B (HCFR, AMBAC
INSURED)+/-ss(a)(m)(n) 0.36 11/15/2017 9,281,250
1,275,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORT SERIES A (HCFR) 4.00 01/01/2015 1,364,365
1,935,000 MINNEAPOLIS MN FAIRVIEW HEALTH SERVICES SERIES A (HCFR) 5.13 11/15/2013 2,078,693
65,000 WESTERN MINNESOTA MUNICIPAL POWER AGENCY SERIES A (ELECTRIC REVENUE) 6.38 01/01/2016 73,403
59,312,109
--------------
MISSISSIPPI: 1.52%
1,945,000 JACKSON STATE UNIVERSITY EDUCATIONAL BUILDING CORPORATION CAMPUS FACILITIES
PROJECT (LEASE REVENUE)+/-ss 5.00 03/01/2034 2,008,407
5,000,000 MISSISSIPPI BUSINESS FINANCE CORPORATION DDR GULFPORT PROMENADE PROJECT
(IDR, REGIONS BANK LOC)+/-ss 0.95 12/01/2037 5,000,000
15,000,000 MISSISSIPPI BUSINESS FINANCE CORPORATION HATTIESBURG PROJECT A
(IDR, MARSHALL & ILSLEY BANK LOC)+/-ss 2.47 10/01/2033 15,000,000
3,580,000 MISSISSIPPI BUSINESS FINANCE CORPORATION SERIES A (ELECTRICAL POWER) 3.25 05/01/2014 3,593,926
10,340,000 MISSISSIPPI BUSINESS FINANCE CORPORATION VY SERVICES INCORPORATED SERIES A
(INDUSTRIAL REVENUE, REGIONS BANK LOC)+/-ss 0.95 07/01/2023 10,340,000
1,360,000 MISSISSIPPI DEVELOPMENT BANK SPECIAL OBLIGATION SERIES B1 (HCFR, ASSURED
GUARANTY) 2.00 07/01/2012 1,368,949
1,000,000 MISSISSIPPI HOSPITAL EQUIPMENT & FACILITIES AUTHORITY MISSISSIPPI BAPTIST
HEALTH SYSTEM INCORPORATED SERIES A (HCFR REVENUE) 5.00 08/15/2012 1,037,180
38,348,462
--------------
MISSOURI: 0.95%
4,250,000 CHESTERFIELD VALLEY TRANSPORTATION DEVELOPMENT DISTRICT MO (SALES TAX
REVENUE, CIFG INSURED) 4.00 04/15/2026 4,281,578
935,000 FENTON MO GRAVOIS BLUFFS REDEVELOPMENT PROJECT (TAX/ALLOCATION REVENUE) 4.50 04/01/2021 904,687
1,745,000 LAKE OF THE OZARKS MO COMMUNITY BRIDGE CORPORATION (TOLL ROAD REVENUE) 5.25 12/01/2014 1,577,899
475,000 MISSOURI DEVELOPMENT FINANCE BOARD INDEPENDENCE MISSOURI CENTERPOINT
SERIES F (LEASE REVENUE) 4.00 04/01/2012 492,965
500,000 MISSOURI DEVELOPMENT FINANCE BOARD INDEPENDENCE MISSOURI CENTERPOINT
SERIES F (LEASE REVENUE) 4.25 04/01/2013 525,375
1,000,000 MISSOURI STATE ENVIRONMENTAL IMPROVEMENT & ENERGY RESOURCES AUTHORITY
KANSAS CITY POWER & LIGHT (IDR, XL CA INSURED)+/-ss 5.25 07/01/2017 1,053,890
5,350,000 MISSOURI STATE ENVIRONMENTAL IMPROVEMENT & ENERGY RESOURCES AUTHORITY PCR
ASSOCIATED ELECTRIC COOPERATIVE PROJECT (RESOURCE RECOVERY REVENUE)+/-ss 4.38 12/01/2034 5,507,023
105,000 MISSOURI STATE HOUSING DEVELOPMENT COMMUNITY SINGLE FAMILY SERIES B2
(HOUSING REVENUE, GNMA INSURED) 6.40 03/01/2029 108,511
140,000 MISSOURI STATE HOUSING DEVELOPMENT COMMUNITY SINGLE FAMILY SERIES D2
(HOUSING REVENUE, GNMA INSURED) 6.30 03/01/2029 142,118
2,145,000 SIKESTON MO ELECTRICAL REVENUE (ELECTRICAL POWER, NATL-RE INSURED) 6.00 06/01/2013 2,263,812
1,390,000 ST. LOUIS MO LAMBERT ST LOUIS INTERNATIONAL SERIES A 2 (AIRPORT REVENUE) 4.25 07/01/2012 1,417,355
2,750,000 ST. LOUIS MO LAMBERT ST. LOUIS INTERNATIONAL SERIES B (AIRPORT REVENUE,
NATL-RE FGIC INSURED) 6.00 07/01/2013 3,026,128
2,500,000 ST. LOUIS MO LAMBERT ST. LOUIS INTERNATIONAL SERIES B (AIRPORT REVENUE,
NATL-RE FGIC INSURED) 6.00 07/01/2011 2,651,100
23,952,441
--------------
MONTANA: 0.06%
90,000 FLATHEAD MT MUNICIPAL AIRPORT AUTHORITY MONTANA GLACIER PARK INTERNATIONAL
AIRPORT SERIES A (AIRPORT REVENUE) 5.00 06/01/2011 92,388
310,000 FLATHEAD MT MUNICIPAL AIRPORT AUTHORITY MONTANA GLACIER PARK INTERNATIONAL
AIRPORT SERIES A (AIRPORT REVENUE) 5.00 06/01/2012 321,501
Wells Fargo Advantage Municipal Income Funds 57
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MONTANA (continued)
$ 150,000 FLATHEAD MT MUNICIPAL AIRPORT AUTHORITY MONTANA GLACIER PARK INTERNATIONAL
AIRPORT SERIES B (AIRPORT REVENUE) 5.00% 06/01/2012 $ 155,565
685,000 MONTANA HEALTH FACILITIES AUTHORITY BENEFITS HEALTH CARE PROJECT (HCFR,
AMBAC INSURED) 5.38 09/01/2011 718,531
210,000 MONTANA STATE BOARD HOUSING SERIES A2 (SFMR, GO OF BOARD) 4.20 12/01/2013 214,899
1,502,884
--------------
NEBRASKA: 0.41%
490,000 BLAIR NE BOND ANTICIPATION NOTES SERIES B (WATER REVENUE) 4.65 06/15/2012 494,052
2,000,000 CENTRAL PLAINS NE ENERGY PROJECT # 1 SERIES A (NATURAL GAS REVENUE) 5.00 12/01/2014 2,129,720
6,925,000 CENTRAL PLAINS NE ENERGY PROJECT # 1 SERIES A (NATURAL GAS REVENUE) 5.00 12/01/2015 7,290,502
475,000 O'NEILL NE ST. ANTHONY'S PROJECT (HCFR) 6.25 09/01/2012 499,904
10,414,178
--------------
NEVADA: 0.25%
2,460,000 CLARK COUNTY NV JET AVIATION FUEL TAX SERIES C (AIRPORT REVENUE, AMBAC
INSURED) 5.00 07/01/2013 2,579,728
1,145,000 RENO NV WASHOE MEDICAL CENTER SERIES A (HOSPITAL REVENUE, AMBAC INSURED) 5.25 06/01/2011 1,192,082
1,195,000 RENO NV WASHOE MEDICAL CENTER SERIES A (HOSPITAL REVENUE, AMBAC INSURED) 5.25 06/01/2012 1,268,863
1,225,000 RENO NV WASHOE MEDICAL CENTER SERIES A (HOSPITAL REVENUE, AMBAC INSURED) 5.25 06/01/2013 1,317,843
6,358,516
--------------
NEW HAMPSHIRE: 0.55%
8,000,000 NEW HAMPSHIRE BUSINESS FINANCE AUTHORITY THE UNITED ILLUMINATING
COMPANY PROJECT (PCR)+/-ss 7.13 07/01/2027 8,509,440
5,135,000 NEW HAMPSHIRE HOUSING FINANCE AUTHORITY SFMR SERIES B (HOUSING REVENUE) 5.00 07/01/2027 5,369,978
13,879,418
--------------
NEW JERSEY: 0.64%
2,700,000 GLOUCESTER COUNTY NJ IMPROVEMENT AUTHORITY WASTE MANAGEMENT
INCORPORATED PROJECT SERIES A (RESOURCE RECOVERY REVENUE)+/-ss 2.63 12/01/2029 2,702,241
2,615,000 NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY CIGARETTE TAX (TOBACCO &
LIQUOR TAXES REVENUE) 5.38 06/15/2014 2,693,633
2,000,000 NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY CIGARETTE TAX (TOBACCO & LIQUOR
TAXES REVENUE, FGIC INSURED) 5.00 06/15/2012 2,053,840
1,285,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A (EDUCATIONAL
FACILITIES REVENUE) 5.00 06/01/2013 1,405,443
5,555,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A (EDUCATIONAL
FACILITIES REVENUE) 5.00 06/01/2014 6,144,663
995,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A (OTHER
REVENUE, AMBAC INSURED) 5.20 06/01/2013 1,001,945
100,000 NEW JERSEY STATE HIGHWAY AUTHORITY GARDEN STATE PARKWAY GENERAL
(TOLL ROAD REVENUE) 6.20 01/01/2010 100,000
16,101,765
--------------
NEW MEXICO: 0.59%
165,000 ALBUQUERQUE NM MCT INDUSTRIES INCORPORATED PROJECT (INDUSTRIAL REVENUE) 3.70 04/01/2010 165,446
1,250,000 CLAYTON NM JAIL PROJECT REVENUE (OTHER REVENUE, CIFG INSURED) 5.00 11/01/2014 1,290,775
6,500,000 NEW MEXICO EDUCATIONAL ASSISTANCE FOUNDATION SERIES C (STUDENT LOAN REVENUE) 3.90 09/01/2014 6,551,935
970,000 NEW MEXICO MORTGAGE FINANCE AUTHORITY SFMR CLASS IA2 (SFMR, FNMA INSURED) 5.60 01/01/2039 995,404
405,000 NEW MEXICO MORTGAGE FINANCE AUTHORITY SFMR CLASS ID2 (HOUSING REVENUE,
GNMA INSURED) 4.05 07/01/2026 401,902
4,900,000 NEW MEXICO MORTGAGE FINANCE AUTHORITY SFMR CLASS ID2 (HOUSING REVENUE,
GNMA INSURED) 4.38 07/01/2033 5,010,250
58 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
NEW MEXICO (continued)
$ 355,000 NEW MEXICO MORTGAGE FINANCE AUTHORITY SFMR SERIES A2 (HOUSING REVENUE,
GNMA INSURED) 7.10% 09/01/2030 $ 365,547
200,000 NEW MEXICO MORTGAGE FINANCE AUTHORITY SFMR SERIES F2 (HOUSING REVENUE,
GNMA INSURED) 6.80 03/01/2031 205,496
14,986,755
--------------
NEW YORK: 2.05%
3,015,000 AMHERST NY IDAG CIVIC FACILITIES SERIES A (COLLEGE & UNIVERSITY REVENUE,
RADIAN INSURED)+/-ss 4.20 10/01/2031 3,080,516
1,500,000 LONG ISLAND POWER AUTHORITY ELECTRICAL SYSTEM SERIES D (ELECTRICAL POWER,
NATL-RE INSURED)+/-ss 3.59 09/01/2015 1,415,490
4,010,000 MONROE COUNTY NY AIRPORT AUTHORITY GREATER ROCHESTER INTERNATIONAL AIRPORT
(AIRPORT & MARINA, NATL-RE INSURED) 5.75 01/01/2014 4,306,900
5,030,000 MONROE COUNTY NY AIRPORT AUTHORITY GREATER ROCHESTER INTERNATIONAL AIRPORT
(AIRPORT & MARINA, NATL-RE INSURED) 5.75 01/01/2015 5,420,630
3,830,000 MONROE COUNTY NY AIRPORT AUTHORITY GREATER ROCHESTER INTERNATIONAL AIRPORT
(AIRPORT & MARINA, NATL-RE INSURED) 5.88 01/01/2016 4,107,369
135,000 NASSAU COUNTY NY IDA NORTH SHORE HEALTH SYSTEMS PROJECTS C (HOSPITAL REVENUE) 5.63 11/01/2010 138,087
205,000 NASSAU COUNTY NY IDAG SPECIAL NEEDS FACILITIES PROGRAM F1 (ECONOMIC
DEVELOPMENT REVENUE, ACA INSURED) 4.30 07/01/2010 203,922
1,070,000 NEW YORK CITY IDAG YANKEE STADIUM (RECREATIONAL REVENUE, GUARANTEE
AGREEMENT)## 2.09 03/01/2012 1,023,327
2,755,000 NEW YORK CITY IDAG YANKEE STADIUM (RECREATIONAL REVENUE, GUARANTEE
AGREEMENT)## 2.51 03/01/2013 2,549,587
6,935,000 NEW YORK CITY TERMINAL ONE GROUP ASSOCIATION PROJECT (LEASE REVENUE) 5.00 01/01/2012 7,207,754
1,000,000 NEW YORK CITY TRANSIT AUTHORITY TRIBOROUGH BRIDGE & TUNNEL (LEASE REVENUE,
AMBAC INSURED) 5.30 01/01/2012 1,013,050
250,000 NEW YORK NY IDAG TERMINAL ONE GROUP ASSOCIATION PROJECT (LEASE REVENUE) 5.00 01/01/2011 255,960
5,750,000 NEW YORK NY TRANSITIONAL FINANCE AUTHORITY FUTURE TAX SECTION SUBSERIES C2
(SALES TAX REVENUE, AGM INSURED)+/-ss 0.73 11/01/2027 5,750,000
7,775,000 NEW YORK STATE ENERGY R&D AUTHORITY NY STATE ELECTRICAL & GAS D
(ELECTRICAL POWER, NATL-RE INSURED)+/-ss 4.10 12/01/2015 7,816,052
3,145,000 NEW YORK TOBACCO SETTLEMENT FINANCING CORPORATION SERIES A-1
(TOBACCO SETTLEMENT REVENUE) 5.50 06/01/2016 3,184,061
1,505,000 NIAGARA FALLS NY BRIDGE COMMISSION SERIES B (TOLL ROAD REVENUE, NATL-RE
INSURED) 5.25 10/01/2015 1,602,133
520,000 NIAGARA NY BUFFALO NIAGARA INTERNATIONAL AIRPORT SERIES A (AIRPORT REVENUE,
NATL-RE INSURED) 5.75 04/01/2011 526,594
325,000 ORANGE COUNTY NY SPECIAL NEEDS FACILITIES PROGRAM G1 (ECONOMIC DEVELOPMENT
REVENUE, ACA INSURED) 4.35 07/01/2011 316,154
25,000 SUFFOLK COUNTY NY SPECIAL NEEDS SERIES C1 (OTHER REVENUE) 6.88 07/01/2010 25,106
1,750,000 TOBACCO SETTLEMENT FINANCING CORPORATION NY SERIES A (TOBACCO SETTLEMENT
FUNDED) 5.50 06/01/2018 1,850,415
51,793,107
--------------
NORTH CAROLINA: 2.18%
5,080,000 NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY SERIES C (ELECTRIC REVENUE,
NATL-RE INSURED) 7.00 01/01/2013 5,436,159
36,084,000 NORTH CAROLINA MEDICAL CARE COMMISSION CAROMONT HEALTH (HCFR, ASSURED
GUARANTY)+/-ss 0.85 02/15/2035 36,084,000
8,980,000 NORTH CAROLINA MEDICAL CARE COMMISSION UNIVERSITY HEALTH SYSTEM SERIES E1
(NURSING HOME REVENUE)+/-ss 5.75 12/01/2036 9,787,392
1,250,000 PITT COUNTY NC MEMORIAL HOSPITAL (HOSPITAL REVENUE) 5.38 12/01/2010 1,289,463
2,465,000 RALEIGH DURHAM NC AIRPORT AUTHORITY SERIES A (AIRPORT & MARINA REVENUE,
NATL-RE, FGIC INSURED) 5.25 11/01/2013 2,574,126
55,171,140
--------------
Wells Fargo Advantage Municipal Income Funds 59
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
NORTH DAKOTA: 0.12%
$ 685,000 FARGO ND MERITCARE OBLIGATED GROUP SERIES A (HCFR, NATL-RE INSURED) 5.50% 06/01/2011 $ 694,069
1,025,000 GRAND FORKS ND ALTRU HEALTH SYSTEM OBLIGATION GROUP (HOSPITAL REVENUE,
NATL-RE INSURED) 5.40 08/15/2011 1,027,142
1,310,000 GRAND FORKS ND ALTRU HEALTH SYSTEM OBLIGATION GROUP (HOSPITAL REVENUE,
NATL-RE INSURED) 5.40 08/15/2012 1,312,463
3,033,674
--------------
OHIO: 2.85%
50,000 BUCKEYE OH TOBACCO SETTLEMENT FINANCING AUTHORITY SERIES A-1
(TOBACCO SETTLEMENT REVENUE) 4.25 06/01/2011 50,458
4,000,000 BUCKEYE OH TOBACCO SETTLEMENT FINANCING AUTHORITY SERIES A-1
(TOBACCO SETTLEMENT REVENUE) 5.00 06/01/2011 4,077,680
1,805,000 LAKE COUNTY OH HOSPITAL SYSTEM SERIES C (HOSPITAL REVENUE) 4.00 08/15/2011 1,815,361
1,625,000 MONTGOMERY COUNTY OH WATER REVENUE GREATER MORAINE BEAVER (WATER REVENUE,
AMBAC INSURED) 4.00 05/01/2015 1,664,569
5,500,000 MONTGOMERY COUNTY OH CATHOLIC HEALTH INITIATIVES SERIES D (HOSPITAL
REVENUE)+/-ss 5.25 10/01/2038 5,985,210
2,650,000 MONTGOMERY COUNTY OH WATER REVENUE REFUNDING SYSTEM GREATER MORAINE BEAVER
(WATER REVENUE, AMBAC INSURED) 5.38 11/15/2015 2,768,296
1,500,000 OHIO STATE AIR QUALITY DEVELOPMENT AUTHORITY AIR QUALITY DEVELOPMENT
AUTHORITY POWER PROJECT (ELECTRIC, POWER & LIGHT REVENUE, NATL-RE
INSURED)+/-ss 4.85 08/01/2040 1,556,670
2,900,000 OHIO STATE AIR QUALITY DEVELOPMENT AUTHORITY FIRST ENERGY SERIES B
(INDUSTRIAL REVENUE)+/-ss 3.00 10/01/2033 2,904,263
8,000,000 OHIO STATE AIR QUALITY DEVELOPMENT AUTHORITY PCR FIRSTENERGY SERIES D
(IDR)+/-ss 4.75 08/01/2029 8,178,720
1,750,000 OHIO STATE HIGHER EDUCATIONAL FACILITY COMMISSION HOSPITAL CLEVELAND CLINIC
HEALTH SERIES A (HOSPITAL REVENUE) 4.00 01/01/2013 1,851,413
1,000,000 OHIO STATE HIGHER EDUCATIONAL FACILITY COMMISSION HOSPITAL CLEVELAND CLINIC
HEALTH SERIES A (HOSPITAL REVENUE) 5.00 01/01/2014 1,101,010
7,500,000 OHIO STATE HIGHER EDUCATIONAL FACILITY COMMISSION SERIES B UNIVERSITY
HOSPITAL HEALTH SYSTEM (HOSPITAL REVENUE)+/-ss 3.75 01/15/2025 7,682,325
3,300,000 OHIO STATE WATER DEVELOPMENT AUTHORITY WASTE MANAGEMENT PROJECT
(RESOURCE RECOVERY REVENUE)+/-ss 1.00 07/01/2021 3,300,000
25,000,000 PUTTABLE FLOATING OPTION TAX EXEMPT RECEIPTS (OTHER REVENUE, NATL-RE
INSURED)+/-ss 0.75 04/01/2026 25,000,000
2,000,000 STATE OF OHIO REPUBLIC SERVICES PROJECT (INDUSTRIAL DEVELOPMENT
REVENUE)+/-ss 4.25 04/01/2033 1,942,320
2,346,000 WASHINGTON COUNTY OH HOSPITAL REVENUE MARIETTA AREA HEALTH (HCFR,
AGM INSURED)+/-ss 0.55 12/01/2033 2,346,000
72,224,295
--------------
OKLAHOMA: 1.48%
1,055,000 CHEROKEE NATION OF OKLAHOMA HEALTHCARE SYSTEM SERIES 2006 (HOSPITAL
REVENUE, ACA INSURED)++ 4.10 12/01/2011 1,080,995
636,526 COMANCHE COUNTY OK INDEPENDENT SCHOOL DISTRICT # 4 GERONIMO (EDUCATIONAL
FACILITIES REVENUE) 6.25 08/15/2014 676,296
1,865,000 MCCLAIN COUNTY ECONOMIC DEVELOPMENT AUTHORITY EDUCATIONAL FACILITIES
(LEASE REVENUE) 4.25 09/01/2014 1,973,748
4,490,000 MUSKOGEE OK INDUSTRIAL TRAINING EDUCATIONAL FACILITIES (LEASE REVENUE,
ASSURED GUARANTY) 4.25 09/01/2012 4,811,394
5,905,000 OKLAHOMA CITY OK AIRPORT TRUST JUNIOR LIEN SERIES B (AIRPORT & MARINA, ACA
INSURED) 5.75 07/01/2015 5,999,303
13,000,000 OKLAHOMA CITY OK INDUSTRIAL & CULTURAL FACILITIES SERIES B (HCFR, NATL-RE
INSURED)+/-ss(a)(m)(n) 0.72 06/01/2019 12,155,000
235,000 OKLAHOMA COUNTY FINANCE AUTHORITY JONES PUBLIC SCHOOL PROJECT (LEASE
REVENUE) 4.00 09/01/2014 244,948
840,000 OKLAHOMA COUNTY FINANCE AUTHORITY WESTERN HEIGHTS PUBLIC SCHOOLS PROJECT
(LEASE REVENUE) 3.25 09/01/2012 860,286
1,090,000 OKLAHOMA DEVELOPMENT FINANCE AUTHORITY LEASE REVENUE DEPARTMENT OF HUMAN
SERVICES COMMUNITY OFFICE (LEASE REVENUE, AMBAC INSURED) 5.25 02/01/2015 1,124,891
3,000,000 OKLAHOMA DEVELOPMENT FINANCE AUTHORITY PCR PUBLIC SERVICE COMPANY
OKLAHOMA PROJECT (IDR) 5.25 06/01/2014 3,215,580
60 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
OKLAHOMA (continued)
$ 1,130,000 OKMULGEE OK MUNICIPAL UTILITY SYSTEM & SALES TAX REVENUE SERIES A (OTHER
REVENUE) 2.00% 12/01/2012 $ 1,128,463
1,000,000 OKMULGEE OK MUNICIPAL UTILITY SYSTEM & SALES TAX REVENUE SERIES A (OTHER
REVENUE) 2.25 12/01/2013 999,880
1,035,000 TULSA OK AIRPORTS IMPROVEMENT TRUST SERIES A (AIRPORT & MARINA REVENUE) 3.00 06/01/2012 1,037,619
2,250,000 TULSA OK AIRPORTS IMPROVEMENT TRUST SERIES A (AIRPORT & MARINA REVENUE) 3.00 06/01/2013 2,229,255
37,537,658
--------------
OREGON: 0.07%
1,000,000 OREGON STATE FACILITIES AUTHORITY LEGACY HEALTH SYSTEM (HCFR) 5.00 03/15/2013 1,071,020
750,000 OREGON STATE FACILITIES AUTHORITY LEGACY HEALTH SYSTEM (HCFR) 5.00 03/15/2014 807,345
1,878,365
--------------
PENNSYLVANIA: 6.36%
525,000 ALLEGHENY COUNTY PA AIRPORT AUTHORITY PITTSBURGH INTERNATIONAL AIRPORT
(AIRPORT REVENUE, NATL-RE FGIC INSURED) 6.00 01/01/2013 531,200
1,175,000 ALLEGHENY COUNTY PA HOSPITAL DEVELOPMENT AUTHORITY UNIVERSITY OF PITTSBURGH
MEDICAL CENTER SERIES B (HOSPITAL REVENUE) 5.00 06/15/2014 1,276,908
1,090,000 ALLEGHENY COUNTY PA HOSPITAL DEVELOPMENT AUTHORITY WEST PENNYSYLVANIA
SERIES A (HCFR) 5.00 11/15/2011 1,066,009
4,000,000 ALLEGHENY COUNTY PA IDA ENVIRONMENTAL (IDR) 6.50 05/01/2017 4,087,120
500,000 ALLEGHENY COUNTY PA SANITATION AUTHORITY (SEWER REVENUE, NATL-RE INSURED) 5.00 12/01/2012 517,225
2,585,000 ALLEGHENY COUNTY PA UNIVERSITY OF PITTSBURGH MEDICAL CENTER SERIES B
(HOSPITAL REVENUE) 5.00 06/15/2014 2,809,197
2,100,000 BEAVER COUNTY IDA PCR FIRSTENERGY SERIES B (IDR)+/-ss 3.00 10/01/2047 2,112,201
1,870,000 CHESTER COUNTY PA IDA RENAISSANCE ACADEMY PROJECT SERIES A
(PRIVATE SCHOOLS REVENUE) 5.63 10/01/2015 1,768,328
765,000 CHESTER COUNTY PA RENAISSANCE ACADEMY PROJECT SERIES A (PRIVATE SCHOOLS
REVENUE) 5.25 10/01/2010 763,715
650,000 CUMBERLAND COUNTY PA MUNICIPAL AUTHORITY DIAKON LUTHERAN (HCFR) 3.75 01/01/2013 643,637
2,310,000 CUMBERLAND COUNTY PA MUNICIPAL AUTHORITY DIAKON LUTHERAN (HCFR) 5.00 01/01/2015 2,347,769
4,290,000 DELAWARE COUNTY PA IDA RESOURCE RECOVERY FACILITY SERIES A (RESOURCE
RECOVERY REVENUE) 6.10 07/01/2013 4,290,987
200,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES 1985 B (OTHER
REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2020 200,000
4,400,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES A (OTHER REVENUE,
BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2017 4,400,000
1,100,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES A (OTHER REVENUE,
BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2019 1,100,000
2,235,000 GALLERY CERTIFICATE TRUST PA (AUTO PARKING REVENUE, FSA INSURED) 4.50 02/15/2013 2,240,610
3,250,000 HARRISBURG PA AUTHORITY RESOURCE RECOVERY FACILITY CAPITAL APPRECIATION
LIMITED OBLIGATION SERIES C (RESOURCE RECOVERY REVENUE)## 4.43 12/15/2010 3,116,360
8,080,000 HARRISBURG PA AUTHORITY RESOURCE RECOVERY FACILITY SERIES D 1 (OTHER
REVENUE, AGM INSURED)+/-ss 6.75 12/01/2033 8,297,190
2,535,000 LUZERNE COUNTY PA SERIES C (PROPERTY TAX REVENUE, FSA INSURED) 7.00 11/01/2018 2,960,525
2,000,000 LYCOMING COUNTY PA HEALTH SYSTEM SUSQUEHANNA HEALTH SYSTEM PROJECT A
(HCFR, ACA INSURED) 5.00 07/01/2014 2,050,160
850,000 MCKEAN COUNTY PA BRADFORD HOSPITAL PROJECT (HOSPITAL REVENUE, ACA INSURED) 5.00 10/01/2010 850,612
2,000,000 MCKEESPORT PA AREA SCHOOL DISTRICT (PROPERTY TAX REVENUE, AMBAC INSURED)## 3.70 10/01/2014 1,679,560
6,135,000 PENNSYLVANIA ALBERT EINSTEIN HEALTHCARE SERIES A (HOSPITAL REVENUE) 5.00 10/15/2013 6,357,516
11,785,000 PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY MAIN LINE HEALTH
(OTHER REVENUE)+/-ss 0.65 10/01/2027 11,048,438
2,250,000 PENNSYLVANIA EDFA (RESOURCE RECOVERY REVENUE, AMBAC INSURED) 5.00 12/01/2014 2,204,843
3,715,000 PENNSYLVANIA EDFA COLVER PROJECT SERIES F (OTHER REVENUE, AMBAC INSURED) 5.00 12/01/2013 3,677,181
1,900,000 PENNSYLVANIA EDFA COLVER PROJECT SERIES F (RESOURCE RECOVERY REVENUE,
AMBAC INSURED) 5.00 12/01/2015 1,829,282
6,500,000 PENNSYLVANIA EDFA WASTE MANAGEMENT PROJECT (OTHER REVENUE)+/-ss 2.63 12/01/2033 6,489,015
1,590,000 PENNSYLVANIA STATE FINANCE AUTHORITY COMMUNITY BEAVER COUNTY PJ
(COLLEGE & UNIVERSITY REVENUE, NATL-RE INSURED) 4.65 12/01/2013 1,594,611
Wells Fargo Advantage Municipal Income Funds 61
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
PENNSYLVANIA (continued)
$ 1,375,000 PENNSYLVANIA STATE HIGHER EDUCATION FACILITIES (COLLEGE & UNIVERSITY
REVENUE, RADIAN INSURED) 5.50% 03/15/2013 $ 1,380,596
20,000,000 PENNSYLVANIA STATE TURNPIKE COMMISSION DEPARTMENT OF GENERAL SERVICES
SERIES C (TOLL ROAD REVENUE)+/-ss 1.29 12/01/2014 20,000,000
15,000,000 PENNSYLVANIA STATE TURNPIKE COMMISSION SERIES C (TOLL ROAD REVENUE)+/-ss 1.22 12/01/2013 15,000,000
1,000,000 PHILADELPHIA PA 16TH SERIES (NATURAL GAS REVENUE, AGM INSURED) 5.50 07/01/2013 1,013,000
3,225,000 PHILADELPHIA PA 7TH SERIES 1998 GENERAL ORDINANCE (UTILITIES REVENUE,
AMBAC INSURED) 5.00 10/01/2013 3,391,152
1,000,000 PHILADELPHIA PA 8TH SERIES 1998 GENERAL ORDINANCE (NATURAL GAS REVENUE) 5.00 08/01/2013 1,057,230
4,045,000 PHILADELPHIA PA 8TH SERIES GENERAL ORDINANCE (NATURAL GAS REVENUE) 5.00 08/01/2014 4,252,832
8,000,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL DEVELOPMENT (LEASE REVENUE,
NATL-RE INSURED) 5.00 10/01/2012 8,497,760
2,300,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL DEVELOPMENT SERIES A (AIRPORT &
MARINA REVENUE, NATL-RE, FGIC INSURED) 5.00 07/01/2015 2,313,616
5,625,000 PHILADELPHIA PA AUTHORITY FOR INDUSTRIAL DEVELOPMENT SERIES A (LEASE
REVENUE, NATL-RE, FGIC INSURED) 5.00 10/01/2013 6,006,544
1,000,000 PHILADELPHIA PA CITY OF PHILADELPHIA (PROPERTY TAX REVENUE, CIFG INSURED) 5.00 08/01/2014 1,067,480
780,000 PHILADELPHIA PA MUNICIPAL AUTHORITY (LEASE REVENUE) 4.00 04/01/2012 799,734
1,290,000 PHILADELPHIA PA MUNICIPAL AUTHORITY (LEASE REVENUE) 4.00 04/01/2013 1,323,166
2,265,000 PHILADELPHIA PA PARKING AUTHORITY (AIRPORT REVENUE) 5.00 09/01/2012 2,416,166
2,405,000 PHILADELPHIA PA SCHOOL DISTRICT SERIES E (PROPERTY TAX REVENUE, STATE AID
WITHHOLDING) 5.00 09/01/2011 2,559,281
1,110,000 PHILADELPHIA PA SERIES B (AIRPORT REVENUE, NATL-RE INSURED) 5.50 06/15/2016 1,140,780
6,250,000 PITTSBURGH PA WATER & SEWER AUTHORITY SERIES C (WATER REVENUE, ASSURED
GTY)+/-ss 2.63 09/01/2035 6,264,438
160,793,974
--------------
PUERTO RICO: 1.35%
310,000 CHILDREN'S TRUST FUND PUERTO RICO (TOBACCO SETTLEMENT REVENUE) 4.00 05/15/2010 311,181
2,740,000 COMMONWEALTH OF PUERTO RICO (OTHER REVENUE, FGIC INSURED) 5.50 07/01/2011 2,858,313
100,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES 2447
(OTHER REVENUE, ASSURED GUARANTY)+/-ss 0.26 07/01/2036 100,000
215,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES EE (ELECTRIC REVENUE, NATL-RE
INSURED) 5.25 07/01/2014 216,948
1,500,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES WW (POWER REVENUE) 5.00 07/01/2011 1,564,260
4,125,000 PUERTO RICO GOVERNMENT FACILITIES SERIES M (LEASE REVENUE,
COMMONWEALTH GUARANTEED) 5.50 07/01/2011 4,282,245
4,625,000 PUERTO RICO HFA VIVIENDA MODERNIZATION (HOUSING REVENUE) 4.75 10/01/2011 4,632,585
2,120,000 PUERTO RICO HIGHWAY & TRANSPORTATION AUTHORITY (FUEL SALES TAX REVENUE,
NATL-RE INSURED) 5.50 07/01/2013 2,265,453
420,000 PUERTO RICO HIGHWAY & TRANSPORTATION AUTHORITY SERIES CC (TOLL ROAD
REVENUE) 5.00 07/01/2012 439,055
2,470,000 PUERTO RICO HIGHWAY & TRANSPORTATION SERIES W (FUEL SALES TAX REVENUE) 5.50 07/01/2013 2,625,635
1,820,000 PUERTO RICO HIGHWAY & TRANSPORTATION SERIES X (FUEL SALES TAX REVENUE) 5.50 07/01/2013 1,934,678
12,250,000 PUERTO RICO SALES TAX FINANCING CORPORATION FIRST SUBSERIES A
(SALES TAX REVENUE)+/-ss 5.00 08/01/2039 12,843,635
34,073,988
--------------
RHODE ISLAND: 0.05%
1,175,000 RHODE ISLAND HEALTH & EDUCATIONAL BUILDING CORPORATION PROVIDENCE PUBLIC
SCHOOLS (OTHER REVENUE, AGM INSURED) 5.00 05/15/2014 1,287,800
--------------
SOUTH CAROLINA: 0.91%
1,350,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 15.55 01/01/2027 121,500
3,435,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 15.03 01/01/2028 283,388
18,250,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 11.98 01/01/2037 885,125
62 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
SOUTH CAROLINA (continued)
$ 14,500,000 CONNECTOR 2000 ASSOCIATION INCORPORATED CAPITAL APPRECIATION SERIES B
(TOLL ROAD REVENUE)##(i) 11.88% 01/01/2038 $ 626,400
130,000 GREENVILLE COUNTY SC DONALDSON INDUSTRIAL AIR PARK PROJECT A (AIRPORT
REVENUE) 5.50 04/01/2011 125,878
1,100,000 ORANGEBURG COUNTY SC JOINT GOVERNMENT ACTION AUTHORITY (SALES TAX REVENUE,
NATL-RE INSURED) 5.00 10/01/2013 1,150,754
2,010,000 ORANGEBURG SC JOINT GOVERNMENTAL ACTION AUTHORITY (SALES TAX REVENUE,
NATL-RE INSURED) 5.00 04/01/2011 2,069,275
1,860,000 PIEDMONT MUNICIPAL POWER AGENCY UNREFUNDED BALANCE 2004 SERIES A
(ELECTRICAL POWER REVENUE, FGIC) 6.50 01/01/2016 2,110,114
9,460,000 SOUTH CAROLINA JOBS ECONOMIC DEVELOPMENT AUTHORITY PALMETTO HEALTH
(HCFR)+/-ss 0.99 08/01/2039 8,873,480
2,900,000 TOBACCO SETTLEMENT REVENUE MANAGEMENT AUTHORITY SC (TOBACCO
SETTLEMENT FUNDED) 5.00 06/01/2018 2,904,669
4,000,000 YORK COUNTY SC PCR SERIES B 2 (SEWER REVENUE)+/-ss 2.25 09/15/2024 4,002,800
23,153,383
--------------
SOUTH DAKOTA: 0.09%
830,000 LOWER BRULE SIOUX TRIBE OF SOUTH DAKOTA SERIES B (PROPERTY TAX REVENUE) 5.15 05/01/2014 745,290
235,000 SOUTH DAKOTA EDFA ECONOMIC DEVELOPMENT REVENUE POOLED LOAN PG MCELEEG
SOUTH DAKOTA PJ-B (INDUSTRIAL REVENUE) 4.38 04/01/2011 242,405
1,200,000 SOUTH DAKOTA STATE HEALTH AND EDUCATIONAL SANFORD HEALTH (HOSPITAL REVENUE) 4.00 11/01/2013 1,251,960
2,239,655
--------------
TENNESSEE: 6.46%
7,600,000 CHATTANOOGA TN INDUSTRIAL BOARD (RECREATIONAL REVENUE, SUNTRUST BANK
LOC)+/-ss 0.35 07/01/2026 7,600,000
4,200,000 CHATTANOOGA-HAMILTON COUNTY TN HOSPITAL AUTHORITY (HCFR, AGM INSURED) 5.00 10/01/2013 4,544,484
1,850,000 CHATTANOOGA-HAMILTON COUNTY TN HOSPITAL AUTHORITY (HCFR, AGM INSURED) 5.00 10/01/2013 2,001,737
4,085,000 CHATTANOOGA-HAMILTON COUNTY TN HOSPITAL AUTHORITY (HCFR, AGM INSURED) 5.00 10/01/2014 4,404,365
1,650,000 CHATTANOOGA-HAMILTON COUNTY TN HOSPITAL AUTHORITY (HCFR, AGM INSURED) 5.00 10/01/2014 1,778,997
9,000,000 CLAIBORNE COUNTY TN LINCOLN MEMORIAL UNIVERSITY PROJECT (COLLEGE &
UNIVERSITY REVENUE, AMSOUTH BANK LOC)+/-ss 0.95 07/01/2036 9,000,000
3,000,000 CLARKSVILLE TN NATURAL GAS ACQUISITION CORPORATION (NATURAL GAS REVENUE) 5.00 12/15/2011 3,133,800
2,785,000 CLARKSVILLE TN NATURAL GAS ACQUISITION CORPORATION (UTILITIES REVENUE) 5.00 12/15/2012 2,933,051
2,395,000 ELIZABETHTON TN HEALTH & EDUCATION FACILITIES (HCFR, NATL-RE INSURED) 6.25 07/01/2014 2,615,963
11,100,000 ELIZABETHTON TN HEALTH & EDUCATIONAL FACILITIES SERIES B PREREFUNDED (HCFR) 8.00 07/01/2033 12,692,517
1,200,000 ELIZABETHTON TN HEFA SERIES B (HCFR, NATL-RE INSURED) 7.75 07/01/2029 1,365,324
8,750,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES (HOSPITAL REVENUE, NATL-RE
INSURED) 7.50 07/01/2033 9,905,525
10,700,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES BOARD 1ST MORTGAGE MOUNTAIN
STATES (HCFR) 7.50 07/01/2033 12,113,042
21,305,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES BOARD MOUNTAIN STATES
HEALTH ALLIANCE A (HCFR, REGIONS BANK LOC)+/-ss 0.90 07/01/2038 21,305,000
20,648,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES BOARD MOUNTAIN STATES
HEALTHALLIANCE A (HCFR, REGIONS BANK LOC)+/-ss 0.90 07/01/2038 20,648,000
1,135,000 KNOX COUNTY TN HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD (HOSPITAL
REVENUE) 4.13 04/01/2011 1,149,664
7,000,000 KNOX COUNTY TN HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD FORT SANDERS
ALLIANCE (HCFR, NATL-RE INSURED) 5.75 01/01/2012 7,400,330
1,750,000 LEWISBURG TN INDUSTRIAL DEVELOPMENT BOARD WASTE MANAGEMENT INCORPORATED
PROJECT (RESOURCE RECOVERY REVENUE)+/-ss 1.00 07/01/2012 1,750,298
200,000 METROPOLITAN NASHVILLE AIRPORT AUTHORITY IMPROVEMENT SERIES C (AIRPORT
REVENUE, NATL-RE FGIC INSURED) 5.38 07/01/2013 202,490
1,000,000 SEVIER COUNTY TN UTILITY DISTRICT (UTILITIES REVENUE, AMBAC INSURED) 5.40 05/01/2011 1,002,280
1,335,000 SULLIVAN COUNTY TN HEALTH & EDUCATION FACILITIES WELLMONT HEALTH SYSTEMS
(HOSPITAL REVENUE, RADIAN INSURED) 5.00 09/01/2011 1,346,307
1,125,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2011 1,185,728
1,830,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2013 1,931,986
5,925,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2014 6,231,323
Wells Fargo Advantage Municipal Income Funds 63
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
TENNESSEE (continued)
$ 16,090,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.00% 09/01/2015 $ 16,831,266
7,895,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES C (UTILITY REVENUE) 5.00 02/01/2015 8,376,911
163,450,388
--------------
TEXAS: 6.01%
10,000,000 ARLINGTON TX SPECIAL OBLIGATION DALLAS COWBOYS SERIES A (SALES TAX REVENUE,
NATL-RE INSURED) 5.00 08/15/2034 10,022,600
1,300,000 BRAZOS RIVER TX HARBOR NAVIGATION DISTRICT THE DOW CHEMICAL COMPANY
(OTHER REVENUE) 5.25 10/01/2011 1,312,194
85,000 DUNCANVILLE TX HOSPITAL AUTHORITY METHODIST HOSPITALS DALLAS PROJECT
(HOSPITAL REVENUE, GO OF HOSPITAL) 9.00 01/01/2010 85,000
1,220,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.00 10/01/2011 1,252,196
10,000 GARZA COUNTY TX PUBLIC FACILITIES CORPORATION (LEASE REVENUE) 5.00 10/01/2012 10,323
225,000 GATEWAY TX PUBLIC FACILITY CORPORATION STONEGATE VILLAS APARTMENTS PROJECT
(HOUSING REVENUE, FNMA INSURED) 3.88 01/01/2010 225,000
3,345,000 HARRIS COUNTY HOUSTON TX SPORTS SERIES B (HOTEL OCCUPANCY TAX, NATL-RE
INSURED)## 5.14 11/15/2011 3,040,003
3,000,000 HARRIS COUNTY TX CULTURAL EDUCATION FACILITIES FINANCE CORPORATION
METHODIST HOSPITAL SYSTEM SERIES B (HOUSING REVENUE) 5.25 12/01/2013 3,338,160
1,525,000 HARRIS COUNTY TX HEALTH FACILITIES CHIRISTUS HEALTH SERIES A 5 (HCFR, AGM
INSURED)+/-ss 0.80 07/01/2036 1,525,000
1,250,000 HARRIS COUNTY TX HEALTH FACILITIES DEVELOPMENT CORPORATION MEMORIAL
HOSPITAL SYSTEMS PROJECT SERIES A (HOSPITAL REVENUE, NATL-RE INSURED) 6.00 06/01/2012 1,334,288
1,563,000 HOUSTON TX BENEFICIAL OWNERSHIP SERIES 14 PUTABLE (HOUSING REVENUE)ss 5.75 11/01/2034 1,507,998
3,000,000 HOUSTON TX FIRST LIEN SERIES C (UTILITIES REVENUE, AMBAC INSURED)+/-ss 5.00 05/15/2034 3,132,780
2,500,000 HOUSTON TX FIRST LIEN SERIES C1 (UTILITIES REVENUE, AMBAC INSURED)+/-ss 5.00 05/15/2034 2,610,650
2,930,000 HOUSTON TX HOTEL OCCUPANCY REFUNDING CONVENTION AND ENTERTAINMENT
(HOTEL OCCUPANCY TAX REVENUE, AMBAC INSURED) 5.38 09/01/2014 3,065,249
3,505,000 HOUSTON TX HOTEL OCCUPANCY TAX & SUPPLEMENT SERIES B (HOTEL OCCUPANCY
TAX REVENUE, AMBAC INSURED) 5.75 09/01/2015 3,657,468
995,000 HOUSTON TX HOUSING FINANCE CORPORATION SERIES A (HOUSING REVENUE, GNMA
INSURED) 6.75 06/01/2033 1,022,731
350,000 LEWISVILLE TX REFINANCING & CAPITAL IMPROVEMENT SPECIAL ASSESSMENT
(PROPERTY TAX REVENUE, ACA INSURED) 5.75 09/01/2012 356,888
3,260,000 LOWER COLORADO RIVER AUTHORITY TEXAS (OTHER REVENUE, AMBAC INSURED) 5.00 05/15/2017 3,406,504
7,025,000 LOWER COLORADO RIVER AUTHORITY TEXAS SERIES A (OTHER REVENUE, AGM INSURED) 5.88 05/15/2015 7,120,048
3,500,000 LUBBOCK TX HEALTH FACILITIES DEVELOPMENT CORPORATION ST. JOSEPH HEALTH
SYSTEMS SERIES A (HCFR)+/-ss 3.05 07/01/2030 3,546,025
3,765,000 MATAGORDA COUNTY TX PCR AEP TEXAS CENTER PROJECT NAVIGATION DISTRICT # 1
(IDR)+/-ss 5.13 06/01/2030 3,917,558
2,450,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER PUTTABLE SERIES L2 (TOLL ROAD
REVENUE)+/-ss 6.00 01/01/2038 2,709,823
8,900,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER SERIES E 1 (TOLL ROAD
REVENUE)+/-ss 5.00 01/01/2038 8,900,000
8,500,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER SERIES E2 (OTHER REVENUE)+/-ss 5.25 01/01/2038 9,028,615
2,000,000 NORTH TEXAS TOLLWAY AUTHORITY SERIES A (TOLL ROADS REVENUE) 3.00 01/01/2012 2,021,740
805,000 ODESSA TX HOUSING AUTHORITY SECTION 8 ASSISTANCE PROJECT SERIES B (HOUSING
REVENUE, HUD INSURED) 6.38 10/01/2011 805,097
1,795,000 SABINE RIVER TX INDUSTRIAL NORTHEAST TEXAS NATIONAL RURAL UTILITY COMPANY
84Q (INDUSTRIAL REVENUE)+/-ss 2.75 08/15/2014 1,795,503
160,000 SAM RAYBURN TX MUNICIPAL POWER AGENCY (UTILITIES REVENUE, NATL-RE INSURED) 6.00 09/01/2010 166,102
1,315,000 SAN ANTONIO TX HOTEL OCCUPANCY (OTHER REVENUE, NATL-RE INSURED)## 1.17 08/15/2011 1,290,265
22,220,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION I SENIER LIEN SERIES D
(NATURAL GAS REVENUE) 5.63 12/15/2017 23,792,732
28,850,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II BMA INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.71 09/15/2017 26,974,750
10,000,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II LIBOR INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.87 09/15/2017 9,252,500
400,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION SERIES A (NATURAL GAS
REVENUE) 5.00 12/15/2012 421,264
2,785,000 TEXAS MUNICIPAL POWER AGENCY UNREFUNDED BALANCE (ELECTRICAL POWER,
AMBAC INSURED)## 2.51 09/01/2012 2,605,507
64 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
TEXAS (continued)
$ 8,000,000 TEXAS MUNICIPAL POWER AGENCY UNREFUNDED BALANCE (ELECTRICAL POWER,
NATL-RE INSURED)## 3.74% 09/01/2015 $ 6,484,800
365,000 TEXAS STATE AFFORDABLE HOUSING CORPORATION (HOUSING REVENUE, GNMA INSURED) 5.50 09/01/2038 373,837
152,111,198
--------------
UTAH: 0.03%
10,000 UTAH HOUSING CORPORATION SERIES D CLASS 1(SINGLE FAMILY MORTGAGE REVENUE) 2.95 07/01/2033 9,539
750,000 UTAH STATE CHARTER SCHOOL FINANCE AUTHORITY SUMMIT ACADEMY SERIES A
(OTHER REVENUE) 5.13 06/15/2017 715,755
725,294
--------------
VIRGIN ISLANDS: 0.50%
1,000,000 VIRGIN ISLANDS MATCHING FUND LOAN DIAGO SERIES A (OTHER REVENUE) 6.00 10/01/2014 1,040,870
645,000 VIRGIN ISLANDS PFA SENIOR LIEN MATCHING FUND LOAN NOTES SERIES A (SEWER
REVENUE) 5.00 10/01/2014 682,191
2,500,000 VIRGIN ISLANDS SENIOR LIEN SERIES B (OTHER REVENUE) 5.00 10/01/2013 2,654,075
500,000 VIRGIN ISLANDS SENIOR LIEN SERIES B (OTHER REVENUE) 5.00 10/01/2014 528,830
3,250,000 VIRGIN ISLANDS SUB LIEN SERIES C (OTHER REVENUE) 5.00 10/01/2013 3,450,298
2,250,000 VIRGIN ISLANDS SUB LIEN SERIES C (OTHER REVENUE) 5.00 10/01/2014 2,379,735
605,000 VIRGIN ISLANDS SUB MATCHING FUND SERIES A (OTHER REVENUE) 5.00 10/01/2013 638,015
400,000 VIRGIN ISLANDS SUB-MATCHING FUND LOAN DIAGO SERIES A (OTHER REVENUE) 3.00 10/01/2010 401,992
465,000 VIRGIN ISLANDS SUB-MATCHING FUND LOAN DIAGO SERIES A (OTHER REVENUE) 3.00 10/01/2011 466,070
465,000 VIRGIN ISLANDS SUB-MATCHING FUND LOAN DIAGO SERIES A (OTHER REVENUE) 3.00 10/01/2012 461,275
12,703,351
--------------
VIRGINIA: 1.57%
8,000,000 ALBEMARLE COUNTY VA IDR JEFFERSON SCHOLARS FOUNDATION PROJECT (OTHER
REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 10/01/2037 8,000,000
1,900,000 AMELIA COUNTY VA IDA WASTE MANAGEMENT PROJECT (OTHER REVENUE)+/-ss 4.80 04/01/2027 1,908,322
2,425,000 CHESTERFIELD COUNTY VA IDA (IDR)+/-ss 5.88 06/01/2017 2,517,344
3,000,000 CHESTERFIELD COUNTY VA IDA (IDR)+/-ss 5.88 06/01/2017 3,114,240
2,375,000 HARRISONBURG VA IDA (HOSPITAL REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 12/01/2021 2,375,000
3,500,000 MARQUIS COUNTY VA DEVELOPMENT AUTHORITY (OTHER REVENUE) 5.10 09/01/2013 3,189,725
360,000 RICHMOND VA GOVERNMENT FACILITIES REVENUE BONDS (LEASE REVENUE, AMBAC
INSURED) 5.00 07/15/2013 391,457
8,695,000 RUSSELL COUNTY VA IDA MOUNTAIN STATES HEALTH ALLIANCE SERIES B (HCFR,
REGIONS BANK LOC)+/-ss 0.90 07/01/2038 8,695,000
8,651,000 SMYTH COUNTY VA IDA MOUNTAIN STATES HEALTH ALLIANCE SERIES C (HCFR, REGIONS
BANK LOC)+/-ss 0.90 07/01/2032 8,651,000
395,000 VIRGINIA COLLEGE BUILDING AUTHORITY EDUCATIONAL FACILITIES (COLLEGE &
UNIVERSITY REVENUE) 4.50 06/01/2012 403,449
535,000 VIRGINIA COLLEGE BUILDING AUTHORITY REGENT UNIVERSITY PROJECT (COLLEGE &
UNIVERSITY REVENUE) 5.00 06/01/2014 547,305
39,792,842
--------------
WASHINGTON: 1.85%
500,000 PORT KALAMA WA SERIES B (AIRPORT REVENUE) 5.25 12/01/2015 525,895
260,000 PORT MOSES LAKE WA SERIES A (PROPERTY TAX REVENUE, XLCA INSURED) 4.25 12/01/2011 272,251
200,000 PORT MOSES LAKE WA SERIES A (PROPERTY TAX REVENUE, XLCA INSURED) 4.25 12/01/2012 210,626
185,000 PORT MOSES LAKE WA SERIES A (PROPERTY TAX REVENUE, XLCA INSURED) 4.25 12/01/2013 195,515
395,000 QUINAULT INDIAN NATION WA QUINAULT BEACH SERIES A (OTHER REVENUE, ACA
INSURED) 5.80 12/01/2015 341,782
500,000 SKAGIT COUNTY PUBLIC HOSPITAL DISTRICT #1 (HOSPITAL REVENUE) 5.50 12/01/2013 525,555
75,000 SNOHOMISH COUNTY WA PUBLIC HOSPITAL DISTRICT #3 SERIES A (PROPERTY TAX
REVENUE) 6.00 06/01/2010 75,011
965,000 SPOKANE WA PUBLIC FACILITIES DISTRICT SERIES A (TAX REVENUE, NATL-RE
INSURED) 5.00 12/01/2011 1,023,305
10,935,000 TOBACCO SETTLEMENT AUTHORITY WASHINGTON ASSET-BACKED (TOBACCO
SETTLEMENT FUNDED REVENUE) 6.50 06/01/2026 10,997,876
2,000,000 WASHINGTON HEALTH CARE FACILITIES AUTHORITY SERIES A (HCFR) 5.00 08/15/2012 2,129,920
1,250,000 WASHINGTON HEALTH CARE FACILITIES AUTHORITY SERIES A (HCFR) 5.00 08/15/2013 1,345,763
Wells Fargo Advantage Municipal Income Funds 65
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
WASHINGTON (continued)
$ 1,500,000 WASHINGTON HEALTH CARE FACILITIES AUTHORITY SERIES A (HCFR) 5.00% 08/15/2014 $ 1,623,345
710,000 WASHINGTON HIGHER EDUCATION FACILITIES AUTHORITY WHITWORTH UNIVERSITY
PROJECT (COLLEGE & UNIVERSITY REVENUE) 4.00 10/01/2012 732,947
630,000 WASHINGTON HIGHER EDUCATION FACILITIES AUTHORITY WHITWORTH UNIVERSITY
PROJECT (COLLEGE & UNIVERSITY REVENUE) 4.00 10/01/2013 647,426
790,000 WASHINGTON HIGHER EDUCATION FACILITIES AUTHORITY WHITWORTH UNIVERSITY
PROJECT (COLLEGE & UNIVERSITY REVENUE) 4.00 10/01/2014 805,729
25,230,000 WASHINGTON STATE COP CONVENTION & TRADE CENTER (LEASE REVENUE, NATL-RE) 5.25 07/01/2015 25,310,988
46,763,934
--------------
WEST VIRGINIA: 0.16%
610,000 BERKELEY COUNTY WV PUBLIC SEWER SERIES A (OTHER REVENUE) 4.38 10/01/2011 629,496
545,000 BERKELEY COUNTY WV PUBLIC SEWER SERIES A (OTHER REVENUE) 4.55 10/01/2014 561,475
200,000 KANAWHA COUNTY WV (HOUSING REVENUE, FGIC INSURED) 7.38 09/01/2011 222,328
95,000 OHIO COUNTY WV BUILDING COMMISSION MEDICAL CENTER (HOSPITAL REVENUE) 7.00 10/01/2010 99,136
2,400,000 WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY POLLUTION CONTROL SERIES D
(UTILITIES REVENUE)+/-ss 4.85 05/01/2019 2,518,560
4,030,995
--------------
WISCONSIN: 1.83%
2,130,000 KENOSHA WI USD #1 SERIES A (PROPERTY TAX REVENUE) 4.00 04/01/2013 2,259,973
2,500,000 MARSHFIELD WI BOND ANTICIPATION NOTES SERIES C (ELECTRIC REVENUE) 4.00 12/01/2010 2,541,950
860,000 WISCONSIN AURORA HEALTH CARE (HOSPITAL REVENUE) 5.00 08/15/2012 876,400
1,250,000 WISCONSIN HEALTH & EDUCATIONAL FACILITIES (HOSPITAL REVENUE) 4.00 04/01/2014 1,301,513
17,100,000 WISCONSIN HEALTH & EDUCATIONAL FACILITIES (HOSPITAL REVENUE, M&I MARSHAL &
ILSLEY LOC)+/-ss 1.00 06/01/2022 17,100,000
825,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY SERIES A (OTHER REVENUE,
AMBAC INSURED) 5.88 11/01/2016 834,521
935,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY SERIES F (HOUSING
REVENUE) 5.20 07/01/2018 953,737
6,645,000 WISCONSIN MARQUETTE UNIVERSITY (COLLEGE & UNIVERSITY REVENUE, NATL-RE
INSURED) 5.25 06/01/2013 6,728,793
1,730,000 WISCONSIN THEDACARE INCORPORATED SERIES A (HOSPITAL REVENUE) 5.00 12/15/2014 1,871,306
3,405,000 WISCONSIN THEDACARE INCORPORATED SERIES B (HOSPITAL REVENUE) 4.00 12/15/2014 3,528,227
405,000 WISCONSIN THREE PILLARS COMMUNITIES (HOSPITAL REVENUE) 5.00 08/15/2010 409,844
7,750,000 WISCONSIN WHEATON HEALTHCARE SERIES B (HOSPITAL REVENUE)+/-ss 4.75 08/15/2025 7,805,645
46,211,909
--------------
WYOMING: 0.04%
1,000,000 LINCOLN COUNTY WY ENVIRONMENTAL CORPORATION (RESOURCE RECOVERY
REVENUE)+/-ss 4.13 11/01/2025 1,025,303
--------------
TOTAL MUNICIPAL BONDS & NOTES (COST $2,450,152,316) 2,469,551,658
--------------
SHARES YIELD
- ------------ -------
SHORT-TERM INVESTMENTS: 4.76%
MUTUAL FUNDS: 4.76%
120,250,311 WELLS FARGO ADVANTAGE NATIONAL TAX-FREE MONEY MARKET TRUST~+++(u) 0.10 120,250,311
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $120,250,311) 120,250,311
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $2,570,402,627)* 102.37% 2,589,801,969
OTHER ASSETS AND LIABILITIES, NET (2.37) (59,842,158)
------ --------------
TOTAL NET ASSETS 100.00% $2,529,959,811
------ --------------
66 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
SHORT-TERM MUNICIPAL BOND FUND
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
## Zero coupon security. Interest rate presented is yield to maturity.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in a
Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage Money
Market Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of
$120,250,311.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $2,570,929,781 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 30,351,544
Gross unrealized depreciation (11,479,356)
------------
Net unrealized appreciation $ 18,872,188
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 67
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MUNICIPAL BONDS & NOTES: 99.65%
ALABAMA: 2.49%
$ 1,100,000 ALABAMA 21ST CENTURY AUTHORITY (TOBACCO SETTLEMENT REVENUE) 5.50% 12/01/2011 $ 1,138,753
2,500,000 ALABAMA STATE PUBLIC SCHOOL & COLLEGE AUTHORITY CAPITAL IMPROVEMENT
SERIES B (SALES TAX REVENUE) 5.00 05/01/2013 2,764,825
8,000,000 ALABAMA STATE PUBLIC SCHOOL & COLLEGE AUTHORITY SERIES A (SALES TAX
REVENUE) 5.00 05/01/2013 8,847,440
4,705,000 ALABAMA WATER POLLUTION CONTROL AUTHORITY REVOLVING FUND LOAN (OTHER
REVENUE, AMBAC INSURED) 5.75 08/15/2012 4,718,927
8,600,000 CHATOM AL INDUSTRIAL DEVELOPMENT BOARD POLLUTION CONTROL SERIES+/-ss 1.60 12/01/2024 8,598,366
47,900,000 CHATOM AL INDUSTRIAL DEVELOPMENT BOARD POWERSOUTH ENERGY COOPERATIVE
PROJECTS SERIES A (ELECTRIC REVENUE, AMBAC INSURED)+/-ss 1.60 11/15/2038 47,900,479
4,205,000 CHATOM AL INDUSTRIAL DEVELOPMENT BOARD VARIOUS ALABAMA ELECTRIC COOPERATIVE
INCORPORATE PROJECT SERIES C (ELECTRIC REVENUE, AMBAC INSURED)+/-ss(a) 0.64 08/01/2016 3,994,750
2,380,000 COUNTY OF JEFFERSON AL SERIES B-8 (OTHER REVENUE, FIRST SECURITY BANK
INSURED) 5.25 02/01/2012 2,292,535
4,470,000 GULF SHORES AL MEDICAL CLINIC BOARD COLONIAL PINNACLE MOB PROJECT (HCFR,
REGIONS BANK LOC)+/-ss 0.95 07/01/2034 4,470,000
6,550,000 HUNTSVILLE AL OAKWOOD COLLEGE INCORPORATED PROJECT (COLLEGE & UNIVERSITY
REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 09/01/2026 6,550,000
3,550,000 HUNTSVILLE AL SOLID WASTE DISPOSAL AUTHORITY (OTHER REVENUE, NATL-RE
INSURED) 5.75 10/01/2012 3,631,331
5,030,000 HUNTSVILLE AL SOLID WASTE DISPOSAL AUTHORITY (OTHER REVENUE, NATL-RE
INSURED) 5.50 10/01/2014 5,107,563
2,225,000 HUNTSVILLE MADISON COUNTY AL AIRPORT AUTHORITY (AIRPORT REVENUE, AGM
INSURED) 5.00 07/01/2011 2,295,132
4,990,000 JEFFERSON COUNTY AL YMCA PROJECT (OTHER REVENUE, AMSOUTH BANK LOC)+/-ss 0.95 09/01/2025 4,990,000
20,500,000 MOBILE AL EDUCATIONAL BUILDING AUTHORITY SPRING HILL COLLEGE PROJECT (OTHER
REVENUE, REGIONS BANK LOC)+/-ss 0.93 09/01/2037 20,500,000
3,550,000 MOBLIE AL PRICHARD UNIVERSITY EDUCATIONAL BUILDING AUTHORITY UNIVERSITY
MOBILE
PROJECT (LEASE REVENUE, REGIONS BANK LOC)+/-ss 0.95 03/01/2025 3,550,000
3,595,000 TUSCALOOSA COUNTY AL BOARD OF EDUCATION SERIES B (SALES TAX REVENUE,
REGIONS BANK LOC)+/-ss 0.95 02/01/2017 3,595,000
52,000,000 UNIVERSITY OF ALABAMA AT BIRMINGHAM SERIES B (HCFR, REGIONS BANK LOC)+/-ss 0.95 09/01/2031 52,000,000
186,945,101
--------------
ALASKA: 1.59%
74,700,000 ALASKA HOUSING FINANCE CORPORATION SERIES A (HOUSING REVENUE)+/-ss 0.27 12/01/2041 74,700,000
3,000,000 ALASKA HOUSING FINANCE CORPORATION SERIES B (SFMR)+/-ss 0.30 12/01/2041 3,000,000
37,500,000 ALASKA SATE SERIES A (SFMR, AGM GO)+/-ss 0.40 06/01/2032 37,500,000
2,000,000 ALASKA STATE INTERNATIONAL AIRPORT SYSTEMS SERIES A (AIRPORT REVENUE,
AMBAC INSURED) 5.13 10/01/2010 2,026,200
1,000,000 ALASKA STATE INTERNATIONAL AIRPORTS SYSTEM SERIES A (AIRPORT REVENUE,
NATL-RE INSURED) 5.00 10/01/2010 1,027,090
1,000,000 ALASKA STUDENT LOAN CORPORATION SERIES A 3 (OTHER REVENUE) 5.00 06/01/2011 1,046,650
119,299,940
--------------
ARIZONA: 2.32%
5,565,000 ARIZONA HEALTH FACILITIES AUTHORITY (HCFR)+/-ss 1.10 02/01/2042 5,565,000
9,000,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CATHOLIC HEALTHCARE
WEST SERIES E (HCFR)+/-ss 5.00 07/01/2029 9,519,930
64,350,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S
HOSPITAL SERIES A (HCFR)+/-ss 1.32 02/01/2042 57,174,975
43,300,000 ARIZONA HEALTH FACILITIES AUTHORITY PHOENIX CHILDREN'S
HOSPITAL SERIES B (HCFR)+/-ss 1.17 02/01/2042 38,472,050
3,195,000 ARIZONA SCHOOL FACILITIES BOARD STATE SCHOOL TRUST SERIES A
(OTHER REVENUE, AMBAC INSURED) 5.25 07/01/2012 3,398,266
5,000,000 COCHISE COUNTY POLLUTION CONTROL CORPORATION ARIZONA ELECTRIC POWER
COOPERATIVE
INCORPORATED PROJECT (OTHER REVENUE, GUARANTEE AGREEMENT)+/-ss 3.10 09/01/2024 4,999,200
8,200,000 MARICOPA COUNTY AZ IDA CATHOLIC HEALTH CARE WEST SERIES A
(HCFR, NATL-RE INSURED) 5.75 07/01/2011 8,219,024
68 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
ARIZONA (continued)
$ 5,400,000 MARICOPA COUNTY AZ IDA CATHOLIC HEALTHCARE WEST SERIES B (HCFR)+/-ss 5.00% 07/01/2025 $ 5,677,182
2,000,000 MARICOPA COUNTY AZ IDA SOLID WASTE DISPOSAL WASTE MANAGEMENT
INCOME PROJECT (SOLID WASTE REVENUE)+/-ss 7.00 12/01/2031 2,052,660
5,000,000 MOHAVE COUNTY AZ IDA MOHAVE PRISON LLC EXPANSION PROJECT (OTHER REVENUE) 6.75 05/01/2012 5,120,550
30,825,000 SCOTTSDALE AZ IDA SCOTTSDALE HEALTH CARE SERIES F (HCFR, FIRST
SECURITY BANK INSURED)+/-ss(a) 1.05 09/01/2045 30,825,000
1,450,000 YAVAPAI COUNTY AZ IDA WASTE MANAGEMENT INCORPORATED PROJECT
(OTHER REVENUE)+/-ss 4.00 06/01/2027 1,455,481
2,000,000 YAVAPAI COUNTY AZ IDA WASTE MANAGEMENT INCORPORATED PROJECT
SERIES A2 (OTHER REVENUE)+/-ss 4.25 03/01/2028 2,001,680
174,480,998
--------------
ARKANSAS: 0.38%
250,000 LITTLE ROCK AK HEALTH FACILITIES BOARD BAPTIST HEALTH BRIDGE PROJECT (HCFR) 5.00 09/01/2010 254,873
1,260,000 NORTH LITTLE AK ROCK HEALTH FACILITIES BOARD BAPTIST HEALTH SERIES B (HCFR) 5.00 12/01/2010 1,292,117
26,505,000 NORTHWEST AK REGIONAL AIRPORT AUTHORITY SERIES A (AIRPORT REVENUE,
REGIONS BANK LOC)+/-ss 1.05 02/01/2021 26,505,000
590,000 SPRINGDALE AR (SALES TAX REVENUE, AGM INSURED)+/-ss 4.00 07/01/2027 569,326
28,621,316
--------------
CALIFORNIA: 13.81%
17,550,000 ABAG FINANCE AUTHORITY FOR NONPROFIT CORPORATIONS CALIFORNIA
THE THACHER SCHOOL (PRIVATE SCHOOLS REVENUE)+/-ss 0.45 09/01/2034 17,550,000
17,750,000 AUSTIN CA SERIES 2008-3309 (HOUSING REVENUE)+/-ss 0.55 08/01/2028 17,750,000
8,940,000 CA PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 4011
(SEWER REVENUE, FGIC INSURED)+/-ss 0.50 12/01/2023 8,940,000
9,665,000 CA PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 4043 (TAX REVENUE,
FSA GO OF DISTRICT INSURED)+/-ss 0.50 10/15/2023 9,665,000
27,670,000 CA PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 4211
(PROPERTY TAX REVENUE,)+/-ss 0.50 02/01/2025 27,670,000
10,640,000 CA PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 4369
(FSA INSURED)+/-ss 0.50 08/01/2032 10,640,000
100,000 CALIFORNIA HFA HOME MORTGAGE SERIES F (HOUSING REVENUE, NATL-RE INSURED) 4.70 08/01/2016 100,989
5,000,000 CALIFORNIA HFA REVENUE HOME MORTGAGE SERIES F
(HOUSING REVENUE, FHLMC LOC)+/-ss 0.77 02/01/2038 5,000,000
5,700,000 CALIFORNIA HFA REVENUE HOME MORTGAGE SERIES M
(HOUSING REVENUE, FNMA LOC)+/-ss 0.40 08/01/2033 5,700,000
2,000,000 CALIFORNIA HFFA ADVENTIST HEALTH SYSTEM WEST SERIES C (HCFR) 5.00 03/01/2010 2,009,280
3,000,000 CALIFORNIA HFFA CATHOLIC HEALTHCARE WEST SERIES G (HCFR)+/-ss 5.00 07/01/2028 3,177,780
1,630,000 CALIFORNIA HFFA CATHOLIC WEST SERIES H UNREFUNDED BALANCE (HCFR)+/-ss 4.45 07/01/2026 1,681,133
2,000,000 CALIFORNIA HFFA CEDARS-SINAI MEDICAL CENTER (HCFR) 5.00 08/15/2011 2,070,860
7,100,000 CALIFORNIA HFFA SAN DIEGO HOSPITAL SERIES A
(HCFR, NATL-RE INSURED)+/-ss(a) 0.43 07/15/2018 6,478,821
15,345,000 CALIFORNIA HOUSING FINANCE AGENCY MULTIFAMILY HOUSING SERIES A
(MFHR, FNMA LOC)+/-ss 0.36 02/01/2026 15,345,000
24,700,000 CALIFORNIA HOUSING FINANCE AGENCY PUTTERS SERIES 2878
(HOUSING REVENUE)+/-ss 0.75 02/01/2015 24,700,000
1,825,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES A (MFHR, GO OF AGENCY FNMA
LOC)+/-ss 2.00 08/01/2035 1,825,000
11,945,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES C (MFHR, FNMA LOC)+/-ss 0.36 08/01/2038 11,945,000
40,075,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES D (MFHR, GO OF AGENCY
FNMA LOC)+/-ss 0.42 08/01/2037 40,075,000
21,185,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES D (SFMR, FNMA LOC)+/-ss 0.75 08/01/2038 21,185,000
28,975,000 CALIFORNIA HOUSING FINANCE AGENCY SERIES D (SFMR, FNMA LOC)+/-ss 0.75 02/01/2040 28,975,000
8,865,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
(TOLL ROAD REVENUE, AMBAC INSURED)+/-ss 0.50 07/01/2036 8,865,000
Wells Fargo Advantage Municipal Income Funds 69
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
CALIFORNIA (continued)
$ 9,235,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
(TOLL ROAD REVENUE, AMBAC INSURED)+/-ss 0.50% 07/01/2036 $ 9,235,000
1,625,000 CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
PACIFIC GAS & ELECTRIC COMPANY SERIES G PUTABLE (NATURAL GAS REVENUE)+/-ss 3.75 12/01/2018 1,647,214
5,000,000 CALIFORNIA PCFA WASTE MANAGEMENT INCORPORATED PROJECT SERIES A
(RESOURCE RECOVERY REVENUE)+/-ss 5.00 11/01/2038 5,253,100
2,500,000 CALIFORNIA PCFA WASTE MANAGEMENT INCORPORATED PROJECT SERIES A 1
(RESOURCE RECOVERY REVENUE)+/-ss 4.70 04/01/2025 2,575,850
6,000,000 CALIFORNIA PCFA WASTE MANAGEMENT INCORPORATED PROJECT SERIES C (IDR)+/-ss 6.75 12/01/2027 6,220,020
1,000,000 CALIFORNIA PCFA WASTE SERVICES INCORPORATED SERIES A (OTHER REVENUE)+/-ss 4.50 06/01/2018 1,006,140
1,300,000 CALIFORNIA STATE DWR POWER SUPPLY SUBSERIES G 3
(WATER REVENUE, AGM INSURED)+/-ss 0.21 05/01/2016 1,300,000
64,350,000 CALIFORNIA STATE DWR POWER SUPPLY SUBSERIES G 5
(WATER REVENUE, AGM INSURED)+/-ss 0.25 05/01/2016 64,350,000
18,820,000 CALIFORNIA STATE FLOATER SERIES DCL 049 (GENERAL FUND REVENUE, FSA INSURED,
DEXIA CREDIT LOCAL LOC)+/-ss 0.50 08/01/2032 18,820,000
54,715,000 CALIFORNIA STATE FLOATERS SERIES DC8035 (FSA INSURED, DEXIA CREDIT LOCAL
LOC)+/-ss 0.33 08/01/2032 54,715,000
24,400,000 CALIFORNIA STATE KINDERGARTEN SERIES A8 (GENERAL FUND REVENUE,
CITIBANK NA LOC)+/-ss 0.21 05/01/2034 24,400,000
40,400,000 CALIFORNIA STATEWIDE CDA (HCFR)+/-ss++ 0.50 07/01/2012 40,400,000
7,300,000 CALIFORNIA STATEWIDE CDA HEALTH FACILITIES CATHOLIC SERIES E
(HCFR, AGM INSURED)+/-ss 0.94 07/01/2040 7,300,000
25,150,000 CALIFORNIA STATEWIDE CDA KAISER PERMANENTE SERIES C 1 (HCFR)+/-ss 0.20 04/01/2046 25,150,000
40,000,000 CALIFORNIA STATEWIDE CDA KAISER PERMANENTE SERIES E (HCFR)+/-ss 4.00 11/01/2036 41,225,600
2,000,000 CALIFORNIA TRANSPORTATION FINANCING AUTHORITY (TRANSIT REVENUE, AGM
INSURED)+/-ss 0.40 10/01/2027 2,000,000
23,800,000 CHINO BASIN CA REGIONAL FINANCING AUTHORITY INLAND EMPIRE UTILITY SERIES B
(WATER REVENUE, DEXIA CREDIT LOCAL LOC)+/-ss 0.23 06/01/2032 23,800,000
12,000,000 FONTANA CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE) 4.00 12/01/2012 12,247,560
2,100,000 FOOTHILL-EASTERN CORRIDOR AGENCY CA SUB LIEN (TOLL ROAD REVENUE) 5.25 07/15/2010 2,103,927
4,700,000 GOLDEN STATE TOBACCO SECURITIZATION CORPORATION SERIES A-1 (OTHER REVENUE) 4.00 06/01/2010 4,720,116
2,815,000 INLAND VALLEY DEVELOPMENT AGENCY SERIES A (TAX INCREMENTAL REVENUE) 5.25 04/01/2010 2,834,226
10,000,000 IRVINE RANCH CA WATER DISTRICT SERIES A (WATER REVENUE,
LANDESBANK BADEN-WURTTEMBERG LOC)+/-ss 0.25 07/01/2035 10,000,000
28,115,000 IRWINDALE CA CDA (TAX INCREMENTAL/ALLOCATION REVENUE, FSA INSURED)+/-ss 0.50 07/15/2026 28,115,000
8,535,000 JPMORGAN CHASE PUTTERS/DRIVERS TRUST SERIES 3137 (HOUSING REVENUE)+/-ss 0.75 02/01/2015 8,535,000
2,160,000 JPMORGAN CHASE PUTTERS/DRIVERS TRUST SERIES 3138 (HCFR)+/-ss++ 0.25 11/15/2014 2,160,000
41,225,000 JPMORGAN CHASE PUTTERS/DRIVERS TRUST SERIES 3146 (HCFR)+/-ss++ 0.25 11/15/2014 41,225,000
28,940,000 JPMORGAN CHASE PUTTERS/DRIVERS TRUST SERIES 3175 (HCFR)+/-ss++ 0.25 05/15/2014 28,940,000
1,995,000 JPMORGAN CHASE PUTTERS/DRIVERS TRUST SERIES 3177 (HOUSING REVENUE)+/-ss++ 0.75 02/01/2015 1,995,000
8,380,000 JPMORGAN CHASE PUTTERS/DRIVERS TRUST SERIES 3580
(COLLEGE & UNIVERSITY REVENUE)+/-ss++ 0.25 01/01/2016 8,380,000
8,600,000 LIVERMORE CA COP CAPITAL PROJECTS (LEASE REVENUE, ALLIED IRISH BANK PLC
LOC)+/-ss 0.40 10/01/2030 8,600,000
1,410,000 LONG BEACH CA BOND FINANCE AUTHORITY SERIES A (OTHER REVENUE) 5.00 11/15/2010 1,445,490
44,300,000 LONG BEACH CA COMMUNITY COLLEGE DISTRICT BOND ANTICIPATION NOTES SERIES A 9.85 01/15/2013 53,249,929
2,330,000 LONG BEACH CA SERIES A (AIRPORT REVENUE) 5.75 05/15/2013 2,383,567
455,000 LONG BEACH CA SERIES B (AIRPORT REVENUE) 3.00 06/01/2011 458,262
1,000,000 LOS ANGELES CA DW&P SUBSERIES B 1 (ELECTRIC, POWER & LIGHT REVENUE)+/-ss 0.20 07/01/2034 1,000,000
29,500,000 LOS ANGELES COUNTY CA METROPOLITAN TRANSPORTATION AUTHORITY
PROPOSITION A 1ST TIER SERIES A3 (TAX REVENUE)+/-ss 0.30 07/01/2031 29,500,000
5,500,000 NEWPORT BEACH CA HOAG MEMORIAL PRESBYTERIAN HOSPITAL SERIES C (HCFR)+/-ss 4.00 12/01/2038 5,664,945
10,000,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.64 07/01/2013 9,232,500
5,225,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.79 07/01/2017 4,613,675
5,700,000 ORANGE COUNTY CA LOCAL TRANSPORTATION AUTHORITY LINKED SAVERS & RIBS
(SALES TAX REVENUE) 6.20 02/14/2011 5,880,348
70 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
CALIFORNIA (continued)
$ 28,300,000 PALOMAR POMERADO HEALTH CARE DISTRICT COP SERIES A (HCFR, AGM
INSURED)+/-ss(a) 1.05% 11/01/2036 $ 28,300,000
20,675,000 PALOMAR POMERADO HEALTH CARE DISTRICT COP SERIES B (HCFR, AGM INSURED)+/-ss 0.80 11/01/2036 20,675,000
11,225,000 PALOMAR POMERADO HEALTH CARE DISTRICT COP SERIES C (HCFR, AGM
INSURED)+/-ss(a) 1.00 11/01/2036 11,225,000
1,225,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (AIRPORT REVENUE, NATL-RE FGIC
INSURED) 5.50 11/01/2010 1,241,207
8,240,000 PORT OF OAKLAND CA SERIES K UNREFUNDED (MARINA REVENUE, NATL-RE FGIC
INSURED) 5.75 11/01/2013 8,316,879
2,590,000 POWAY CA COMMUNITY FACILITIES DISTRICT # 88-1 PARKWAY BUSINESS
(SPECIAL ASSESSMENT TAX) 3.00 08/15/2011 2,606,680
2,980,000 POWAY CA COMMUNITY FACILITIES DISTRICT # 88-1 PARKWAY BUSINESS
(SPECIAL ASSESSMENT TAX) 3.25 08/15/2012 2,995,585
3,000,000 RIVERSIDE COUNTY CA TRANSPORTATION COMMISSION LIMITED TAX SERIES B
(SALES TAX REVENUE)+/-ss 0.21 06/01/2029 3,000,000
500,000 ROSEVILLE CA NATURAL GAS FINANCE AUTHORITY (OTHER REVENUE) 4.00 02/15/2010 501,195
510,000 SACRAMENTO CA MUNICIPAL UTILITY DISTRICT SERIES A
(ELECTRIC REVENUE, NATL-RE INSURED) 6.25 08/15/2010 528,518
8,705,000 SACRAMENTO COUNTY CA FLOATING RATE 2327 (GOVERNMENT SECURITIES REVENUE,
FNMA/GNMA INSURED)+/-ss 0.65 10/01/2023 8,705,000
4,400,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES 37D
(OTHER REVENUE, AGM INSURED)+/-ss 0.25 05/01/2030 4,400,000
34,855,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES D
(AIRPORT REVENUE)+/-ss 2.25 05/01/2029 35,126,869
2,230,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES ISSUE 24A
(AIRPORT REVENUE, AGM INSURED) 5.75 05/01/2013 2,275,068
2,890,000 SAN FRANCISCO CA CITY & COUNTY AIRPORTS COMMISSION SECOND SERIES ISSUE 24A
(AIRPORT REVENUE, AGM INSURED) 5.75 05/01/2014 2,945,315
10,000,000 STATE OF CA GO (OTHER REVENUE). 0.43 03/03/2010 10,000,000
5,045,000 TUSTIN CA COMMUNITY REDEVELOPMENT AGENCY+/-ss 0.70 07/01/2010 5,045,000
1,730,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT 2004
ELECTION SERIES A (TAX REVENUE) 6.00 08/01/2012 1,898,848
315,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 4.50 07/01/2011 321,231
285,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 4.50 07/01/2012 292,040
290,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 4.50 07/01/2013 297,743
305,000 WASHINGTON TOWNSHIP CA HEALTH CARE DISTRICT SERIES A (HCFR) 5.00 07/01/2014 317,194
2,135,000 WEST BASIN CA MUD COP SERIES A 1 (WATER REVENUE)+/-ss 0.23 08/01/2027 2,135,000
1,500,000 WILLIAM S. HART CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE) 3.00 12/01/2011 1,507,635
1,000,000 WILLIAM S. HART CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE) 4.00 12/01/2011 1,023,630
8,550,000 WILLIAM S. HART CA USD BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE) 5.00 12/01/2011 8,910,639
1,038,622,608
--------------
COLORADO: 2.98%
110,016 ARAPAHOE COUNTY CO IDK PARTNERS I TRUST SERIES A CLASS A
(SFMR, GNMA COLLATERAL) 5.25 11/01/2019 111,050
4,955,000 ARISTA METROPOLITAN DISTRICT BROOMFIELD EVENT CENTER SERIES A (AUTO PARKING
REVENUE, COMPASS BANK LOC)+/-ss 0.70 12/01/2030 4,955,000
6,000,000 COLORADO ECFA NORTHWESTERN COLLEGE SERIES A (COLLEGE & UNIVERSITY REVENUE
(M&I MARSHALL & ILSLEY LOC)+/-ss 2.47 08/01/2038 6,000,000
57,715,000 COLORADO HEALTH FACILITIES AUTHORITY (HCFR)+/-ss++ 0.50 11/15/2027 57,715,000
35,000,000 COLORADO HEALTH FACILITIES AUTHORITY CATHOLIC HEALTH SERIES B (HCFR)+/-ss 5.00 07/01/2039 37,602,950
500,000 COLORADO HEALTH FACILITIES AUTHORITY COVENANT RETIREMENT
COMMUNITIES INCORPORATED (HCFR) 5.00 12/01/2010 507,775
1,000,000 COLORADO HEALTH FACILITIES AUTHORITY COVENANT RETIREMENT
COMMUNITIES INCORPORATED (HCFR) 5.00 12/01/2011 1,024,500
18,675,000 COLORADO SPRINGS CO SUB LIEN IMPROVEMENTS SERIES A (UTILITY REVENUE)+/-ss 0.27 11/01/2025 18,675,000
10,835,000 DENVER CO CITY & COUNTY (AIRPORT REVENUE, NATL-RE INSURED)+/-ss 0.65 11/15/2012 10,835,000
Wells Fargo Advantage Municipal Income Funds 71
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
COLORADO (continued)
$ 1,370,000 DENVER CO CITY & COUNTY RENTAL CAR PROJECT SERIES A
(OTHER REVENUE, NATL-RE INSURED) 6.00% 01/01/2011 $ 1,381,823
10,000,000 DENVER CO CITY & COUNTY SERIES A (AIRPORT REVENUE, AMBAC INSURED) 6.00 11/15/2013 10,338,000
3,350,000 DENVER CO CITY & COUNTY SUBSERIES F2 (AIRPORT REVENUE, ASSURED
GUARANTY)+/-ss 0.80 11/15/2025 3,350,000
2,725,000 DENVER CO CITY & COUNTY SUBSERIES F3 (AIRPORT REVENUE, ASSURED
GUARANTEE)+/-ss 0.74 11/15/2025 2,725,000
2,225,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES A
(TOLL ROAD REVENUE, NATL-RE INSURED) 5.00 09/01/2010 2,293,664
1,500,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES A2
(TOLL ROAD REVENUE, NATL-RE INSURED)+/-ss 5.00 09/01/2039 1,567,380
10,000,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES B
(TOLL ROAD REVENUE, NATL-RE INSURED)## 3.22 09/01/2011 9,446,800
1,000,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES B1
(TOLL ROAD REVENUE, NATL -RE INSURED) 4.00 09/01/2010 1,009,300
6,715,000 E-470 PUBLIC HIGHWAY AUTHORITY CO SERIES B2
(TOLL ROAD REVENUE, NATL-RE INSURED)+/-ss 5.00 09/01/2039 6,961,038
1,535,000 FITZSIMONS CO RDA COLORADO UNIVERSITY PHYSICIANS INCORPORATED
(COLLEGE & UNIVERSITY REVENUE, ALLIED IRISH BANK PLC LOC)+/-ss 0.45 01/01/2025 1,535,000
45,795,000 UNIVERSITY OF COLORADO HOSPITAL AUTHORITY REVENUE
(COLLEGE & UNIVERSITY REVENUE)+/-ss++ 0.50 09/06/2012 45,795,000
223,829,280
--------------
CONNECTICUT: 0.46%
16,400,000 CAPITAL CITY CT EDFA SERIES B (AUTO PARKING REVENUE)+/-ss 0.27 06/15/2024 16,400,000
10,450,000 CAPITAL CITY CT EDFA SERIES B (AUTO PARKING REVENUE)+/-ss 0.27 06/15/2034 10,450,000
4,825,000 CONNECTICUT STATE HEFA HOSPITAL FOR SPECIAL CARE SERIES D
(HCFR, RADIAN INSURED)+/-ss 4.15 07/01/2037 4,825,000
2,390,000 CONNECTICUT STATE HEFA VETERAN MEMORIAL MEDICAL CENTER SERIES A
(HCFR, NATL-RE INSURED)ss 5.25 07/01/2010 2,395,999
500,000 CONNECTICUT STATE SPECIAL OBLIGATION BRADLEY INTERNATIONAL AIRPORT SERIES A
(LEASE REVENUE, ACA INSURED) 6.13 07/01/2010 500,800
34,571,799
--------------
DELAWARE: 0.64%
47,940,000 DELAWARE PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS+/-ss 1.25 07/01/2047 47,940,000
--------------
DISTRICT OF COLUMBIA: 0.90%
12,000,000 DISTRICT OF COLUMBIA AMERICAN COLLEGE CARDIOLOGY (COLLEGE & UNIVERSITY
REVENUE, SUNTRUST BANK NA LOC)+/-ss 0.35 06/01/2040 12,000,000
5,545,000 DISTRICT OF COLUMBIA CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE
(OTHER REVENUE, ALLIED IRISH BANK PLC LOC)+/-ss 0.35 11/01/2045 5,545,000
1,000,000 DISTRICT OF COLUMBIA CHILDREN'S HOSPITAL SERIES A (HCFR, FGIC INSURED) 6.25 07/15/2010 1,002,470
6,010,000 DISTRICT OF COLUMBIA INTERNATIONAL ECONOMICS ISSUE
(OTHER REVENUE, SUNTRUST BANK NA LOC)+/-ss 0.35 06/01/2025 6,010,000
28,200,000 DISTRICT OF COLUMBIA POPULATION SERVICES INTERNATIONAL
(OTHER REVENUE, SUNTRUST BANK NA LOC)+/-ss 0.35 11/01/2042 28,200,000
15,000,000 DISTRICT OF COLUMBIA SIDWELL FRIENDS SCHOOL (COLLEGE & UNIVERSITY REVENUE,
SUNTRUST BANK LOC)+/-ss 0.35 04/01/2035 15,000,000
67,757,470
--------------
FLORIDA: 8.96%
10,700,000 ALACHUA COUNTY FL HEALTH FACILITIES AUTHORITY SHANDS HOSPITAL AT THE
UNIVERSITY OF FLORIDA (HCFR, NATL-RE INSURED) 6.00 12/01/2011 10,726,964
2,000,000 ARCADIA FL HOUSING AUTHORITY ARCADIA OAKS ASSOCIATION LIMITED PROJECT
(MFHR) 4.25 01/01/2012 2,001,060
1,000,000 AVE MARIA STEWARDSHIP COMMUNITY DEVELOPMENT DISTRICT FL ANTICIPATION BONDS
(SPECIAL ASSESSMENT REVENUE) 4.80 11/01/2012 765,660
72 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
FLORIDA (continued)
$ 1,525,000 BROWARD COUNTY FL PASSENGER FINANCIAL CONVENTION SERIES H 1
(AIRPORT REVENUE, AMBAC INSURED) 5.25% 10/01/2011 $ 1,537,017
3,100,000 BROWARD COUNTY FL SERIES C (AIRPORT REVENUE, NATL-RE INSURED) 5.38 09/01/2011 3,108,804
5,665,000 BROWARD COUNTY FL SERIES C (AIRPORT REVENUE, NATL-RE INSURED) 5.38 09/01/2012 5,677,690
4,700,000 BROWARD COUNTY FL SERIES E (AIRPORT REVENUE, NATL-RE INSURED) 5.25 10/01/2011 4,737,036
22,950,000 CAPE CORAL FL BOND ANTICIPATION NOTES (WATER REVENUE) 6.00 10/01/2011 23,385,591
1,245,000 CITIZENS PROPERTY INSURANCE CORPORATION SENIOR SECOND HIGH RISK ACCOUNT
SERIES A (OTHER REVENUE, NATL-RE INSURED) 5.00 03/01/2010 1,249,358
880,000 DADE COUNTY FL HFA SIESTA POINTE APARTMENTS SERIES A (MFHR) 5.50 09/01/2012 881,408
50,000 ESCAMBIA COUNTY FL SOLID WASTE DISPOSAL SYSTEM GULF POWER COMPANY
PROJECT 2ND SERIES (OTHER REVENUE)+/-ss 0.28 04/01/2039 50,000
20,000,000 FL PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS (LEASE REVENUE)+/-ss 0.50 08/01/2029 20,000,000
500,000 FLORIDA GULF COAST UNIVERSITY FINANCING CORPORATION (COLLEGE & UNIVERSITY
REVENUE, NATL-RE INSURED) 4.50 08/01/2010 509,730
4,020,000 FLORIDA HOUSING FINANCE CORPORATION BRIARWOOD APARTMENTS SERIES E (MFMR) 4.00 10/01/2010 4,055,698
20,000,000 FLORIDA INTERNATIONAL UNIVERSITY ATHLETICS FINANCIAL CORPORATION FOOTBALL
STADIUM PROJECT A (OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 03/01/2033 20,000,000
1,735,000 FLORIDA RURAL UTILITY FINANCING COMMISSION PUBLIC CONSTRUCTION PROJECTS
(OTHER REVENUE) 3.25 11/01/2011 1,739,893
1,785,000 FLORIDA RURAL UTILITY FINANCING COMMISSION PUBLIC CONSTRUCTION PROJECTS
(OTHER REVENUE) 3.50 11/01/2011 1,790,409
2,170,000 FLORIDA RURAL UTILITY FINANCING COMMISSION PUBLIC CONSTRUCTION PROJECTS
(OTHER REVENUE) 4.00 11/01/2011 2,181,479
5,000,000 FLORIDA STATE BOARD OF EDUCATION SERIES C (OTHER REVENUE, NATL-RE INSURED) 5.00 07/01/2012 5,065,200
2,335,000 FLORIDA STATE DEPARTMENT OF CORRECTIONS COP IKEECHOBEE CORRECTIONAL
(LEASE REVENUE AMBAC INSURED) 5.00 03/01/2011 2,424,034
1,330,000 GULF BREEZE FL MIAMI BEACH LOCAL GOVERNMENT SERIES E
(OTHER REVENUE, FGIC INSURED)+/-ss 5.00 12/01/2020 1,345,681
38,255,000 GULF BREEZE FL SERIES FG & H (OTHER REVENUE)+/-ss 5.00 12/01/2020 38,236,255
44,550,000 HIGHLANDS COUNTY FL HFA ADVENTIST HEALTH SERIES D
(HCFR, BANK OF AMERICA NA LOC)+/-ss 0.23 11/15/2037 44,550,000
3,500,000 HIGHLANDS COUNTY FL HFA ADVENTIST HEALTH SUNBELT SERIES A (HCFR)+/- 5.85 11/15/2035 3,762,955
2,805,000 HIGHLANDS COUNTY FL HFA ADVENTIST HEALTH SUNBELT SERIES E (HCFR) 3.00 11/15/2011 2,860,932
1,395,000 HIGHLANDS COUNTY FL HFA ADVENTIST HEALTH SUNBELT SERIES E (HCFR) 4.50 11/15/2012 1,482,522
1,850,000 HILLSBOROUGH COUNTY AVIATION AUTHORITY TAMPA INTERNATIONAL AIRPORT SERIES A
(AIRPORT REVENUE, AMBAC INSURED) 5.25 10/01/2012 1,987,751
4,000,000 HILLSBOROUGH COUNTY FL IDA LESLIE CONTROLS INCORPORATED
(IDR, SUNTRUST BANK LOC)+/-ss 0.50 08/01/2019 4,000,000
825,000 HILLSBOROUGH COUNTY IDA HEALTH FACILITIES UNIVERSITY
COMMUNITY HOSPITAL SERIES A (HCFR) 4.00 08/15/2010 823,614
1,550,000 HILLSBOROUGH COUNTY IDA UNIVERSITY COMMUNITY HOSPITAL
(HCFR, NATL-RE INSURED) 5.75 08/15/2010 1,553,054
2,045,000 HILLSBOROUGH COUNTY SCHOOL BOARD COP MASTER LEASE PROGRAM SERIES A
(LEASE REVENUE, NATL-RE INSURED) 5.50 07/01/2012 2,229,684
9,525,000 JACKSON COUNTY FL ICE RIVER SPRINGS (IDR, REGIONS BANK LOC)+/-ss 1.05 07/01/2023 9,525,000
1,200,000 JACKSONVILLE FL (TAX REVENUE, AMBAC INSURED) 5.50 10/01/2014 1,277,940
28,200,000 JACKSONVILLE FL SERIES CAP PROJECT REVENUE B
(WATER REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 10/01/2034 28,200,000
1,500,000 JEA FL WATER & SEWER SYSTEMS REVENUE SERIES B (WATER REVENUE)+/-ss 0.22 10/01/2041 1,500,000
1,600,000 LAKE SHORE FL LAKESHORE HOSPITAL PROJECT (HCFR, SUNTRUST BANK LOC)+/-ss 0.35 02/01/2021 1,600,000
27,500,000 LAKELAND FL ENERGY SYSTEM REVENUE (ELECTRIC REVENUE)+/-ss 1.07 10/01/2012 27,733,750
10,975,000 LAKELAND FL ENERGY SYSTEM REVENUE (ELECTRIC REVENUE)+/-ss 1.42 10/01/2014 11,068,288
7,920,000 LEE COUNTY FL SERIES A (AIRPORT REVENUE, AGM INSURED) 6.00 10/01/2013 8,178,430
4,000,000 LEE COUNTY FL SOLID WASTE SYSTEM REVENUE (OTHER REVENUE, NATL-RE INSURED) 5.25 10/01/2010 4,071,920
4,850,000 LEE COUNTY FL SOLID WASTE SYSTEM REVENUE (OTHER REVENUE, NATL-RE INSURED) 5.50 10/01/2011 5,041,915
Wells Fargo Advantage Municipal Income Funds 73
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
FLORIDA (continued)
$ 15,790,000 LEESBURG FL LEESBURG REGIONAL SERIES A (HCFR, REGIONS BANK LOC)+/-ss 0.95% 07/01/2031 $ 15,790,000
2,000,000 MIAMI DADE COUNTY FL AVIATION REVENUE SERIES C
(AIRPORT REVENUE, NATL-RE INSURED) 5.25 10/01/2010 2,016,040
6,250,000 MIAMI DADE COUNTY FL HEALTH FACILITIES AUTHORITY MIAMI CHILDREN'S SERIES A
(HCFR, NATL-RE INSURED)+/-ss 4.13 08/01/2046 6,400,438
4,955,000 MIAMI DADE COUNTY FL IDA BELEN JESUIT PREPARATORY SCHOOL PROJECT
(PRIVATE SCHOOL REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 08/01/2019 4,955,000
8,000,000 MIAMI DADE COUNTY FL IDA CHRISTOPHER COLUMBUS PROJECT
(IDR, REGIONS BANK LOC)+/-ss 0.95 06/01/2031 8,000,000
5,840,000 MIAMI DADE COUNTY FL IDA GOODWILL INDUSTRIES SOUTH FLORIDA PROJECT
(IDR, SUNTRUST BANK LOC)+/-ss 0.35 05/01/2028 5,840,000
2,800,000 MIAMI DADE COUNTY FL IDA WASTE MANAGEMENT INCORPORATED
FLORIDA PROJECT (OTHER REVENUE)+/-ss 5.40 08/01/2023 2,859,500
2,150,000 MIAMI DADE COUNTY FL IDA WASTE MANAGEMENT INCORPORATED
PROJECT SERIES 2 (OTHER REVENUE)+/-ss 4.00 12/01/2018 2,149,979
2,770,000 MIAMI DADE COUNTY FL SCHOOL BOARD COP SERIES B
(LEASE REVENUE, NATL-RE INSURED)+/-ss 5.00 05/01/2031 2,847,782
16,817,864 MIAMI DADE COUNTY FL SCHOOL BOARD MASTER EQUIPMENT LEASE 1
(LEASE REVENUE)(a) 3.59 03/03/2016 16,248,243
3,350,000 MIAMI DADE COUNTY FL SCHOOL BOARD SERIES A
(LEASE REVENUE, NATL-RE FGIC INSURED) 5.00 05/01/2011 3,493,749
4,005,000 MIAMI DADE COUNTY FL SCHOOL BOARD SERIES B
(LEASE REVENUE, NATL-RE INSURED)+/-ss 5.50 05/01/2030 4,143,453
2,000,000 MIAMI DADE COUNTY FL WASTE MANAGEMENT INCORPORATED OF
FLORIDA PROJECT (OTHER REVENUE)+/-ss 2.75 10/01/2018 2,003,660
1,385,000 NORTH MIAMI FL JOHNSTON & WALES UNIVERSITY PROJECT SERIES A
(COLLEGE AND UNIVERSITY REVENUE, XLCA INSURED) 5.00 04/01/2011 1,423,946
1,455,000 NORTH MIAMI FL JOHNSTON & WALES UNIVERSITY PROJECT SERIES A
(COLLEGE AND UNIVERSITY REVENUE, XLCA INSURED) 5.00 04/01/2012 1,518,438
10,190,000 OKEECHOBEE COUNTY FL DISPOSAL WASTE MANAGEMENT LANDFILL A
(RESOURCE RECOVERY REVENUE)+/-ss 5.00 07/01/2039 10,190,000
6,300,000 ORANGE COUNTY FL HEALTH FACILITIES AUTHORITY SCHOOL SERVICES
INCORPORATED PROJECT (HCFR, SUNTRUST BANK LOC)+/-ss 0.35 12/01/2023 6,300,000
19,275,000 ORANGE COUNTY FL IDA LAKE HIGHLAND SCHOOL INCORPORATED
(OTHER REVENUE, BANK OF AMERICA NA LOC)+/-ss 0.25 08/01/2032 19,275,000
13,335,000 ORANGE COUNTY FL INDEPENDENT BLOOD & TISSUE SERVICES
(IDR, SUNTRUST BANK LOC)+/-ss 0.35 10/01/2027 13,335,000
11,100,000 ORLANDO & ORANGE COUNTY EXPRESSWAY AUTHORITY SERIES D
(TELECOM REVENUE, AGM INSURED)+/-ss 0.27 07/01/2032 11,100,000
10,000,000 PALM BEACH COUNTY FL HEALTH FACILITIES AUTHORITY POOLED HOSPITAL
LOAN PROGRAM (HCFR, SUNTRUST BANK LOC)+/-ss 0.50 11/01/2025 10,000,000
20,375,000 PALM BEACH COUNTY FL SCHOOL BOARD SERIES B (LEASE REVENUE, FGIC
INSURED)+/-ss 5.00 08/01/2025 21,207,930
5,000,000 PALM BEACH COUNTY FL SOLID WASTE AUTHORITY SERIES A UNREFUNDED BALANCE
PUTABLE (OTHER REVENUE, AMBAC INSURED)ss 6.00 10/01/2010 5,176,650
6,525,000 PALM BEACH COUNTY FL SOUTH FLORIDA BLOOD BANKS PROJECT
(IDR, SUNTRUST BANK LOC)+/-ss 0.35 12/01/2022 6,525,000
25,500,000 PALM BEACH COUNTY PINE CREST PREPARATORY SCHOOL
(PRIVATE SCHOOL REVENUE, BANK OF AMERICA NA)+/-ss 0.25 06/01/2037 25,500,000
29,664,034 PALM BEACH COUNTY PUBLIC IMPROVEMENT COP 3.04 02/01/2014 29,937,240
1,015,000 PINELLAS COUNTY FL FAMILY RESOURCES INCORPORATED PROJECT
(IDR, SUNTRUST BANK LOC)+/-ss 0.40 07/01/2024 1,015,000
3,940,000 PINELLAS COUNTY FL YMCA SUNCOAST INCORPORATED PROJECT
(IDR, SUNTRUST BANK LOC)+/-ss 0.35 05/01/2027 3,940,000
15,180,000 PORT OF ST. JOE FL (WATER & SEWER REVENUE, REGIONS BANK LOC)+/-ss 0.95 12/01/2038 15,180,000
1,155,000 PUNTA GORDA FL HOUSING AUTHORITY GULF BREEZE APARTMENTS SERIES B
(HOUSING REVENUE, HUD INSURED) 4.13 07/01/2010 1,165,822
74 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
FLORIDA (continued)
$ 500,000 REEDY CREEK IMPROVEMENT DISTRICT SERIES 2 (OTHER REVENUE, NATL-RE INSURED) 5.25% 10/01/2010 $ 514,585
3,000,000 SARASOTA-MANATEE AIRPORT AUTHORITY (AIRPORT REVENUE, SUNTRUST BANK
LOC)+/-ss 0.27 08/01/2014 3,000,000
1,255,000 SOUTH LAKE COUNTY HOSPITAL DISTRICT FL SOUTH LAKE HOSPITAL INCORPORATED 5.50 10/01/2013 1,298,938
3,700,000 SOUTH MIAMI FL HEALTH FACILITIES AUTHORITY BAPTIST
HEALTH SOUTH FLORIDA GROUP (HCFR) 5.00 08/15/2010 3,798,124
23,100,000 ST. JOHNS COUNTY FL FLAGLER HOSPITAL INCORPORATED SERIES B
(HCFR, NATL-RE INSURED, SUNTRUST BANK LOC)+/-ss 0.35 12/15/2026 23,100,000
20,925,000 ST. JOHNS COUNTY FL IDA FLAGLER HOSPITAL INCORPORATED SERIES A
(HCFR, NATL-RE INSURED, SUNTRUST BANK LOC)+/-ss 0.35 12/15/2026 20,925,000
3,075,000 TAMPA FL CATHOLIC HEALTH EAST SERIES A 1 (HCFR, NATL-RE INSURED) 5.25 11/15/2011 3,111,254
3,190,000 TAMPA FL PEPIN ACADEMY OF TAMPA INCORPORATED
(OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 10/01/2022 3,190,000
2,830,000 TAMPA FL SOLID WASTE SYSTEM REVENUE SERIES A (OTHER REVENUE, AMBAC INSURED) 4.55 10/01/2010 2,900,750
4,555,000 TAMPA FL TRINITY SCHOOL CHILDREN PROJECT (OTHER REVENUE, REGIONS BANK
LOC)+/-ss 0.95 01/01/2022 4,555,000
3,065,000 UNIVERSITY ATHLETIC ASSOCIATION INCORPORATED
(COLLEGE & UNIVERSITY REVENUE, SUNTRUST BANK LOC)+/-ss 3.75 10/01/2027 3,108,247
2,500,000 UNIVERSITY ATHLETIC ASSOCIATION INCORPORATED
(COLLEGE & UNIVERSITY REVENUE, SUNTRUST BANK LOC)+/-ss 3.80 10/01/2031 2,537,400
18,025,000 UNIVERSITY OF SOUTH FLORIDA COLLEGE MEDICINE HEALTH FACILITIES LEASE
PROGRAM SERIES A-1 (LEASE REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 07/01/2036 18,025,000
11,560,000 UNIVERSITY OF SOUTHERN FLORIDA FINANCING CORPORATION FLORIDA COP
COLLEGE OF MEDICINE HEALTH SERIES A-2 (LEASE REVENUE, SUNTRUST BANK
LOC)+/-ss 0.29 07/01/2036 11,560,000
674,078,890
--------------
GEORGIA: 3.88%
7,810,000 ATLANTA GA SERIES A (SEWER REVENUE) 3.00 11/01/2010 7,906,688
2,250,000 ATLANTA GA SERIES A (SEWER REVENUE) 4.00 11/01/2011 2,336,130
52,690,000 ATLANTA GA SERIES B 2 (AIRPORT REVENUE, NATL-RE INSURED)+/-ss 2.25 01/01/2030 52,690,000
4,000,000 ATLANTA GA SERIES C (AIRPORT REVENUE, NATL-RE FGIC INSURED) 6.25 01/01/2013 4,049,320
73,900,000 ATLANTA GA SERIES C 1 (AIRPORT REVENUE, NATL-RE INSURED)+/-ss 2.32 01/01/2030 73,900,000
650,000 ATLANTA GA SERIES F (AIRPORT REVENUE, FIRST SECURITY BANK INSURED) 5.25 01/01/2011 673,511
1,890,000 BURKE COUNTY GA PCR DEVELOPMENT AUTHORITY OGLETHORPE POWER SERIES 2006 C 1
(UTILITIES REVENUE, AMBAC INSURED)+/-ss 4.63 01/01/2037 1,906,500
525,000 CARTERSVILLE GA (WATER & SEWER REVENUE, AMBAC INSURED) 5.00 01/01/2011 541,842
14,735,000 CLAYTON COUNTY GA HOUSING AUTHORITY VILLAGES AT LAKE RIDGE
APARTMENTS PROJECT (MFHR, AMSOUTH BANK LOC)+/-ss 1.05 02/01/2032 14,735,000
10,355,000 COLUMBUS GA ST. FRANCIS HOSPITAL INCORPORATED PROJECT
(HCFR, SUNTRUST BANK LOC)+/-ss 0.35 01/01/2018 10,355,000
15,020,000 DEKALB GA PRIVATE HOSPITAL AUTHORITY DEKALB MEDICAL
CENTER INCORPORATED PROJECT (HCFR, SUNTRUST BANK LOC)+/-ss 0.35 09/01/2035 15,020,000
21,750,000 FLOYD COUNTY GA BERRY COLLEGE INCORPORATED PROJECT
(COLLEGE & UNIVERSITY REVENUE, FHLB LOC)+/-ss(a) 0.26 03/01/2024 21,750,000
3,470,000 FULTON COUNTY GA DEVELOPMENT AUTHORITY THE EPSTEIN SCHOOL PROJECT
(HOSPITAL REVENUE, SUNTRUST BANK LOC)+/-ss 0.50 01/01/2017 3,470,000
1,500,000 GEORGIA PUBLIC GAS PARTNERS INCORPORATED GEORGIA SERIES A
(NATURAL GAS REVENUE) 5.00 10/01/2011 1,590,660
2,050,000 GEORGIA PUBLIC GAS PARTNERS INCORPORATED GEORGIA SERIES A
(NATURAL GAS REVENUE) 5.00 10/01/2012 2,222,877
2,810,000 GWINNETT COUNTY GA HOSPITAL AUTHORITY KMD GROUP LLC PROJECT
(IDR, SUNTRUST BANK LOC)+/-ss 0.55 02/01/2032 2,810,000
16,225,000 HALL COUNTY GAINESVILLE HOSPITAL AUTHORITY NORTHEAST GA SERIES G
(HCFR, GUARANTEE AGREEMENT)+/-ss 0.30 05/01/2036 16,225,000
1,135,000 JACKSON COUNTY GA WATER & SEWER AUTHORITY SERIES B
(WATER REVENUE, XLCA INSURED) 5.00 09/01/2010 1,153,932
3,990,000 MAIN STREET NATURAL GAS INCORPORATED GA GAS PROJECT SERIES A (UTILITIES
REVENUE) 5.00 09/15/2010 4,071,755
Wells Fargo Advantage Municipal Income Funds 75
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
GEORGIA (continued)
$ 3,000,000 MAIN STREET NATURAL GAS INCORPORATED GEORGIA SERIES A (NATURAL GAS REVENUE) 5.00% 03/15/2010 $ 3,023,160
3,495,000 MAIN STREET NATURAL GAS INCORPORATED GEORGIA SERIES B (NATURAL GAS REVENUE) 5.00 03/15/2010 3,516,145
6,300,000 MAIN STREET NATURAL GAS INCORPORATED GEORGIA SERIES B (NATURAL GAS REVENUE) 5.00 03/15/2011 6,495,993
1,325,000 METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY SERIES P
(SALES TAX REVENUE, AMBAC INSURED) 6.00 07/01/2013 1,471,505
18,510,000 MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA PROJECT ONE
(ELECTRIC REVENUE, FSA INSURED)+/-ss 0.25 01/01/2022 18,510,000
3,100,000 UNION COUNTY GA BOY SCOUTS OF AMERICA ATLANTA PROJECT
(RECREATIONAL REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 04/01/2026 3,100,000
18,445,000 WALKER DADE & CATOOSA COUNTIES GA HOSPITAL AUTHORITY HUTCHESON MEDICAL
(HOSPITAL REVENUE, REGIONS BANK LOC)+/-ss 0.95 10/01/2028 18,445,000
291,970,018
--------------
GUAM: 0.08%
6,050,000 GUAM INTERNATIONAL AIRPORT AUTHORITY SERIES C (AIRPORT REVENUE, NATL-RE
INSURED) 5.00 10/01/2010 6,203,670
--------------
HAWAII: 0.07%
1,000,000 HAWAII STATE AIRPORT SYSTEMS (AIRPORT REVENUE, NATL-RE FGIC INSURED) 5.75 07/01/2013 1,045,750
3,135,000 HAWAII STATE SERIES A (MARINA REVENUE, FIRST SECURITY BANK INSURED) 6.00 07/01/2012 3,220,147
795,000 HAWAII STATE SERIES B (AIRPORT REVENUE, NATL-RE INSURED) 6.38 07/01/2012 817,777
5,083,674
--------------
IDAHO: 0.19%
2,065,000 BOISE ID CITY HOUSING AUTHORITY CIVIC PLAZA HOUSING PROJECT SERIES C
(OTHER REVENUE, KEYBANK NA LOC)+/-ss 2.20 03/01/2033 2,065,000
12,635,000 IDAHO HEALTH FACILITIES AUTHORITY ST. LUKES REGIONAL MEDICAL
CENTER PROJECT (HCFR, AGM INSURED)+/-ss 0.30 07/01/2035 12,635,000
14,700,000
--------------
ILLINOIS: 6.49%
2,430,000 BROADVIEW IL TAX INCREMENT REVENUE (SALES TAX REVENUE) 5.25 07/01/2012 2,430,680
235,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2010 235,014
775,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2011 774,760
810,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2012 809,749
850,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2013 849,737
885,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2014 884,726
930,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2015 929,712
970,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2016 969,699
1,015,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2017 1,014,685
1,065,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2018 1,064,670
1,110,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2019 1,109,656
1,165,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2020 1,164,639
1,215,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2021 1,214,623
76 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
ILLINOIS (continued)
$ 1,270,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25% 11/01/2022 $ 1,269,606
1,330,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2023 1,329,588
1,390,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2024 1,389,569
1,455,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2025 1,454,549
1,525,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2026 1,524,527
1,595,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2027 1,594,506
1,665,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2028 1,664,484
1,745,000 CHAMPAIGN COLES ET AL COUNTIES IL COMMUNITY COLLEGE DISTRICT # 505
(COLLEGE & UNIVERSITY REVENUE) 4.25 11/01/2029 1,744,459
10,000,000 CHICAGO BOARD OF EDUCATION IL SERIES C 2 (PROPERTY TAX REVENUE, AGM
INSURED)+/-ss 2.00 03/01/2035 10,000,000
20,000,000 CHICAGO IL BOARD OF EDUCATION (PROPERTY TAX REVENUE, ASSURED GUARANTY)+/-ss 3.10 03/01/2036 20,000,000
975,000 CHICAGO IL DCL 2008-068 (PROPERTY TAX REVENUE,
AMBAC INSURED, DEXIA CREDIT LOCAL LOC)+/-ss++ 0.40 01/01/2022 975,000
22,435,000 CHICAGO IL O'HARE INTERNATIONAL AIRPORT REVENUE
(AIRPORT REVENUE, NATL-RE INSURED)+/-ss 0.50 01/01/2018 22,435,000
2,640,000 CHICAGO IL O'HARE INTERNATIONAL AIRPORT REVENUE SERIES C
(AIRPORT REVENUE, NATL-RE INSURED) 5.00 01/01/2011 2,736,730
300,000 CHICAGO IL SERIES D (OTHER REVENUE, AGM INSURED)+/-ss 0.31 01/01/2040 300,000
110,100,000 COOK IL CAPITAL IMPROVEMENT SERIES E (PROPERTY TAX REVENUE)+/-ss 0.68 11/01/2033 110,100,000
3,815,000 DAVIS JUNCTION IL (PROPERTY TAX REVENUE, FIFTH THIRD BANK LOC)+/-ss 0.55 06/01/2021 3,815,000
1,000,000 ILLINOIS DEVELOPMENT FINANCE AUTHORITY REVENUE CHRISTIAN HERITAGE ACADEMY
US BANK NA LOC (PRIVATE SCHOOL REVENUE, GLENVIEW STATE BANK LOC)+/-ss 0.51 12/01/2021 1,000,000
56,610,000 ILLINOIS FINANCE AUTHORITY DELNOR COMMUNITY HOSPITAL SERIES A
(HOSPITAL REVENUE, FIFTH THIRD BANK LOC)+/-ss 0.30 05/15/2038 56,610,000
2,840,000 ILLINOIS FINANCE AUTHORITY DEPAUL UNIVERSITY SERIES B
(COLLEGE & UNIVERSITY REVENUE, XLCA INSURED)+/-ss 3.50 10/01/2026 2,873,966
75,000,000 ILLINOIS FINANCE AUTHORITY ELMHURST MEMORIAL HEALTHCARE SERIES C
(HCFR, RBS CITIZENS NA LOC)+/-ss 0.45 01/01/2048 75,000,000
500,000 ILLINOIS FINANCE AUTHORITY MEMORIAL HEIGHTS SYSTEM (HCFR) 3.00 04/01/2011 504,835
875,000 ILLINOIS FINANCE AUTHORITY MEMORIAL HEIGHTS SYSTEM (HCFR) 4.00 04/01/2012 905,756
21,650,000 ILLINOIS FINANCE AUTHORITY PRAIRIE POWER (OTHER REVENUE)+/-ss 3.25 07/01/2042 21,708,888
8,980,000 ILLINOIS FINANCE AUTHORITY RESURRECTION HEALTH (HCFR) 3.00 05/15/2011 9,031,725
9,315,000 ILLINOIS FINANCE AUTHORITY RESURRECTION HEALTH (HCFR) 4.00 05/15/2012 9,473,634
1,170,000 ILLINOIS FINANCE AUTHORITY SWEDISH AMERICAN HOSPITAL (HCFR, AMBAC INSURED) 5.00 11/15/2011 1,209,441
4,500,000 ILLINOIS FINANCE AUTHORITY WASTE MANAGEMENT INCORPORATED PROJECT (IDR)+/-ss 5.05 01/01/2010 4,500,000
2,875,000 ILLINOIS HEALTH FACILITIES AUTHORITY UNREFUNDED BALANCE ADVOCATE NETWORK
(HCFR) 6.00 11/15/2010 3,005,813
16,000,000 ILLINOIS STATE SERIES A (GENERAL FUND REVENUE) 5.00 09/01/2010 16,448,960
9,010,000 ILLINOIS STATE SERIES B (OTHER REVENUE)+/-ss 2.55 10/01/2033 9,010,000
10,995,000 ILLINOIS STATE TOLL HIGHWAY AUTHORITY SERIES A-2
(TOLL ROAD REVENUE, AGM INSURED)+/-ss 0.26 01/01/2031 10,995,000
2,000,000 LAKE COUNTY IL COMMUNITY HIGH SCHOOL DISTRICT # 117 ANTIOCH CAPITAL
APPRECIATION BONDS SERIES B (PROPERTY TAX REVENUE, NATL-RE FGIC INSURED)## 1.96 12/01/2010 1,961,280
9,310,000 LAKE COUNTY IL COMMUNITY HIGH SCHOOL DISTRICT # 127 GRAYSLAKE
(PROPERTY TAX REVENUE, FSA INSURED)+/-ss 0.50 02/01/2017 9,310,000
1,000,000 LAKES REGION SANITATION DISTRICT IL DEBT CERTIFICATES (PROPERTY TAX
REVENUE) 4.13 12/01/2010 1,013,090
2,000,000 MCHENRY & LAKE COUNTIES IL COMMUNITY CONSOLIDATED SCHOOL DISTRICT # 15
(PROPERTY TAX REVENUE, NATL-RE FGIC INSURED) 4.40 01/01/2012 2,060,180
605,000 QUINCY IL BLESSING HOSPITAL (HCFR) 5.00 11/15/2011 621,281
Wells Fargo Advantage Municipal Income Funds 77
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
ILLINOIS (continued)
$ 12,345,000 REGIONAL TRANSPORTATION AUTHORITY IL FLOATERS 2886
(TAX REVENUE, NATL-RE GO OF AUTHORITY INSURED)+/-ss 0.50% 06/01/2033 $ 12,345,000
17,980,000 REGIONAL TRANSPORTATION AUTHORITY IL FLOATERS SERIES DCL 020
(TRANSIT REVENUE, FSA GO OF AUTHORITY INSURED, DEXIA CREDIT LOCAL LOC)+/-ss 0.33 06/01/2034 17,980,000
1,130,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2010 1,132,656
1,700,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2011 1,703,434
1,790,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2012 1,793,168
1,880,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2013 1,882,858
1,980,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2014 1,982,257
2,080,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2015 2,081,498
2,185,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2016 2,185,961
2,300,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2017 2,300,529
2,415,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2018 2,414,976
2,540,000 ROCK ISLAND-MERCER ETC. COUNTIES IL COMMUNITY COLLEGE DISTRICT # 503
(PROPERTY TAX REVENUE) 4.50 12/01/2019 2,519,655
4,475,000 UNIVERSITY OF ILLINOIS COP UTILITIES INFRASTRUCTURE PROJECTS
(LEASE REVENUE, AMBAC INSURED) 5.00 08/15/2012 4,834,835
488,186,044
--------------
INDIANA: 1.83%
1,970,000 BONNE COUNTY IN INDUSTRIAL REDEVELOPMENT DISTRICT BOND
ANTICIPATION NOTES (TAX REVENUE) 4.50 05/15/2010 1,972,206
20,000,000 CARMEL IN (OTHER REVENUE) 3.38 02/17/2010 20,015,600
2,380,000 DELAWARE COUNTY IN BALL MEMORIAL HOSPITAL INCORPORATED (HCFR) 5.00 08/01/2010 2,380,571
2,200,000 DELAWARE COUNTY IN BALL MEMORIAL HOSPITAL INCORPORATED (HCFR) 5.00 08/01/2011 2,200,242
16,930,000 DEXIA CREDIT LOCAL CERTIFICATES TRUST BOA 2008 058 (PROPERTY TAX
REVENUE)+/-ss 0.40 01/01/2030 16,930,000
7,120,000 DEXIA CREDIT LOCAL CERTIFICATES TRUST BOA 2008 060
(COLLEGE & UNIVERSITY REVENUE)+/-ss 0.40 07/01/2029 7,120,000
13,490,000 FORT WAYNE IN BOND ANTICIPATION NOTES (WATER & SEWER REVENUE) 4.25 02/11/2010 13,497,824
12,885,000 IN PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS
(OTHER REVENUE, NATL-RE INSURED)+/-ss 0.50 01/01/2024 12,885,000
8,585,000 INDIANA HEALTH FACILITY FINANCING AUTHORITY ASCENSION HEALTH
CREDIT GROUP SERIES A1 (HOSPITAL REVENUE)+/-ss 3.63 11/15/2036 8,898,353
500,000 INDIANA HEALTH FACILITY FINANCING AUTHORITY ASCENSION HEALTH
SUBORDINATE CREDIT SERIES A (HOSPITAL REVENUE)+/-ss 5.00 10/01/2027 526,835
900,000 INDIANA HFFA DEACONESS HOSPITAL INCORPORATION (HCFR, FIFTH THIRD BANK
LOC)+/-ss 0.55 01/01/2022 900,000
14,300,000 INDIANA MUNICIPAL POWER AGENCY SERIES A
(POWER REVENUE, DEXIA CREDIT LOCAL LOC)+/-ss 0.28 01/01/2018 14,300,000
1,325,000 INDIANA STATE DEVELOPMENT FINANCE AUTHORITY USX CORPORATION PROJECT
(IDR)+/-ss 5.25 12/01/2022 1,399,174
10,305,000 INDIANAPOLIS IN LOCAL PUBLIC IMPROVEMENT BOND BANK
(AIRPORT REVENUE, AMBAC INSURED)+/-ss 0.65 01/01/2019 10,305,000
1,500,000 JASPER IN NORTHERN SERIES A (IDR, NATL-RE INSURED) 4.15 08/01/2010 1,516,305
8,214,000 MISHAWAKA IN TAX ANTICIPATION 2.25 12/31/2010 8,276,344
1,800,000 ST. JOSEPH COUNTY IN BROTHERS OF HOLY CROSS PROJECT
(HOUSING REVENUE, ALLIED IRISH BANK PLC LOC)+/-ss 0.41 09/01/2017 1,800,000
1,375,000 UNIVERSITY OF SOUTHERN INDIANA AUXILIARY SYSTEMS SERIES A
(COLLEGE & UNIVERSITY REVENUE, AMBAC INSURED) 5.00 10/01/2011 1,417,130
78 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
INDIANA (continued)
$ 11,525,000 ZIONSVILLE IN COMMUNITY SCHOOLS BUILDING CORPORATION FLOATERS SERIES DCL
047 (LEASE REVENUE, FSA STATE AID WITHHOLDING INSURED, DEXIA CREDIT LOCAL
LOC)+/-ss 0.33% 01/15/2025 $ 11,525,000
137,865,584
--------------
IOWA: 0.46%
8,000,000 DES MOINES IA GRAND OFFICE PARK PROJECT SERIES E (IDR)+/-ss 2.65 04/01/2015 8,000,000
1,400,000 DUBUQUE IA COMMUNITY SCHOOL DISTRICT (SALES TAX REVENUE) 4.00 07/01/2010 1,402,982
1,000,000 IOWA FINANCE AUTHORITY GENESIS MEDICAL CENTER (HCFR) 6.00 07/01/2012 1,013,830
5,500,000 IOWA FINANCE AUTHORITY SERIES F (HCFR)+/-ss 5.00 08/15/2039 5,906,945
5,000,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION SERIES 1 (STUDENT LOAN REVENUE) 3.00 12/01/2010 5,059,800
1,650,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION SERIES 1 (STUDENT LOAN REVENUE) 2.50 12/01/2011 1,656,105
1,000,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION SERIES 1 (STUDENT LOAN REVENUE) 4.00 12/01/2011 1,032,100
1,650,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION SERIES 1 (STUDENT LOAN REVENUE) 3.25 12/01/2012 1,670,163
1,500,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION SERIES 1 (STUDENT LOAN REVENUE) 4.00 12/01/2012 1,549,620
6,875,000 WATERLOO IA COMMUNITY SCHOOL DISTRICT BOND ANTICIPATION NOTES
(SALES TAX REVENUE) 3.75 05/01/2012 7,123,256
34,414,801
--------------
KANSAS: 1.02%
10,000,000 BURLINGTON KS KANSAS CITY POWER & LIGHT SERIES A 2
(OTHER REVENUE, FGIC INSURED)+/-ss 5.00 09/01/2035 10,064,600
8,500,000 BURLINGTON KS KANSAS CITY POWER & LIGHT SERIES B (IDR, FGIC INSURED)+/-ss 5.38 09/01/2035 9,093,045
6,000,000 BURLINGTON KS KANSAS CITY POWER & LIGHT SERIES B
(OTHER REVENUE, XLCA INSURED)+/-ss 5.00 12/01/2023 6,181,740
1,000,000 JUNCTION CITY KS TEMPORARY NOTES SERIES B (PROPERTY TAX REVENUE) 2.70 06/01/2010 1,008,170
3,765,000 KANSAS CITY KS UNREFUNDED BALANCE CAPITAL APPRECIATION
(ELECTRIC, POWER & LIGHT REVENUE, AMBAC INSURED)## 1.48 03/01/2010 3,755,399
1,000,000 KANSAS DEVELOPMENT FINANCE AUTHORITY ADVENTIST HEALTH (HCFR) 4.00 11/15/2011 1,027,800
5,810,000 KANSAS DEVELOPMENT FINANCE AUTHORITY HAYS MEDICAL CENTER
(HCFR, NATL-RE INSURED)+/-ss 3.75 05/15/2026 5,891,979
5,000,000 KANSAS INDEPENDENT COLLEGE FINANCE AUTHORITY BAKER UNIVERSITY SERIES A
(COLLEGE & UNIVERSITY REVENUE) 5.00 05/01/2010 5,018,500
3,000,000 KANSAS INDEPENDENT COLLEGE FINANCE AUTHORITY SERIES D
(COLLEGE & UNIVERSITY REVENUE) 5.00 05/01/2010 3,011,100
2,500,000 KANSAS INDEPENDENT COLLEGE FINANCE AUTHORITY SERIES E
(COLLEGE & UNIVERSITY REVENUE) 5.00 05/01/2010 2,509,250
4,500,000 KANSAS INDEPENDENT COLLEGE FINANCE AUTHORITY SERIES F
(COLLEGE & UNIVERSITY REVENUE) 5.00 05/01/2010 4,516,650
800,000 KANSAS INDEPENDENT COLLEGE FINANCE AUTHORITY SERIES G
(COLLEGE & UNIVERSITY REVENUE) 5.00 05/01/2010 802,960
1,500,000 KANSAS STATE INDEPENDENT COLLEGE FINANCE AUTHORITY SERIES B
(COLLEGE & UNIVERSITY REVENUE) 5.00 05/01/2010 1,505,550
300,000 KANSAS STATE INDEPENDENT COLLEGE FINANCE AUTHORITY SERIES C
(COLLEGE & UNIVERSITY REVENUE) 5.00 05/01/2010 301,110
6,170,000 MERRIAM KS HOUSING PINEGATE APARTMENTS PROJECT
(MFHR, MARSHALL & ILSLEY BANK LOC)+/-ss 4.00 12/01/2026 6,170,000
11,075,000 SHAWNEE KS HOUSING PINEGATE APARTMENTS PROJECT
(MFHR, MARSHALL & ILSLEY BANK LOC)+/-ss 2.47 03/01/2029 11,075,000
1,675,000 WYANDOTTE COUNTY KS CITY UNIFIED GOVERNMENT REFERENDUM
SALES TAX SECOND LIEN AREA B (SALES TAX REVENUE) 5.00 12/01/2020 1,688,584
2,910,000 WYANDOTTE COUNTY KS CITY UNITED GOVERNMENT SPECIAL OBLIGATION
SALES TAX SECOND LIEN AREA B (SALES TAX REVENUE) 4.75 12/01/2016 2,971,576
76,593,013
--------------
Wells Fargo Advantage Municipal Income Funds 79
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
KENTUCKY: 0.72%
$ 10,000,000 ALLEN COUNTY KY CAMP COURAGEOUS PROJECT (OTHER REVENUE, SUNTRUST
BANK LOC)+/-ss 0.35% 12/01/2025 $ 10,000,000
2,500,000 JEFFERSON COUNTY KY UNIVERSITY MEDICAL CENTER INCORPORATED PROJECT
(HCFR, NATL-RE INSURED) 5.20 07/01/2010 2,506,000
2,075,000 JEFFERSON COUNTY KY UNIVERSITY MEDICAL CENTER INCORPORATED PROJECT
(HCFR, NATL-RE INSURED) 5.25 07/01/2011 2,079,565
4,750,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KY SERIES A
(AIRPORT REVENUE, NATL-RE INSURED) 5.63 03/01/2010 4,777,740
1,075,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KY SERIES A
(AIRPORT REVENUE, XLCA INSURED) 4.00 03/01/2010 1,078,376
6,200,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KY SERIES B
(AIRPORT REVENUE, XLCA INSURED) 5.00 03/01/2010 6,229,698
6,000,000 KENTON COUNTY KY AIRPORT BOARD CINCINNATI NORTHERN KY SERIES B
(AIRPORT REVENUE, XLCA INSURED) 5.00 03/01/2011 6,138,000
6,500,000 KENTUCKY EDFA SERIES 04D (HCFR)+/-ss 3.50 05/01/2034 6,609,785
2,500,000 KENTUCKY HOUSING CORPORATION CITYWIDE HOUSING PROJECT (HOUSING REVENUE) 4.63 01/01/2010 2,500,000
5,000,000 LOUISVILLE & JEFFERSON COUNTY METROPOLITAN GOVERNMENT LOUISVILLE GAS &
ELECTRIC COMPANY SERIES A (OTHER REVENUE)+/- 5.38 05/01/2027 5,203,900
7,020,000 WILMORE KY ASBURY THEOLOGICAL PROJECT (PRIVATE SCHOOLS, REGIONS
BANK LOC)+/-ss 0.95 08/01/2031 7,020,000
54,143,064
--------------
LOUISIANA: 1.80%
3,085,000 CADDO-BOSSIER PARISHES PORT COMMISSION LA OAKLEY LA COMPANY PROJECT
(IDR, REGIONS BANK LOC)+/-ss 1.05 01/01/2028 3,085,000
2,070,000 JEFFERSON LA PARISH HOSPITAL SERVICE DISTRICT # 001 WEST JEFFERSON MEDICAL
CENTER SERIES A (HCFR, AGM INSURED) 5.25 01/01/2011 2,086,457
10,000,000 LAFAYETTE LA ECONOMIC DEVELOPMENT AUTHORITY STIRLING LAFAYETTE LLC PROJECT
(OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 02/01/2038 10,000,000
2,140,000 LOUISIANA LOCAL GOVERNMENT ENVIRONMENTAL FACILITIES & COMMUNITY DEVELOPMENT
MID SOUTH EXTRUSION INCORPORATED PROJECT (IDR, REGIONS BANK LOC)+/-ss 1.05 12/01/2017 2,140,000
8,805,000 LOUISIANA PUBLIC FACILITIES AUTHORITY CENTURY WILSHIRE INCORPORATED PROJECT
(IDR, REGIONS BANK LOC)+/-ss 0.95 02/01/2033 8,805,000
3,550,000 LOUISIANA PUBLIC FACILITIES AUTHORITY CHRISTUS HEALTHCARE (AGM INSURED) 5.00 07/01/2012 3,762,894
6,575,000 LOUISIANA PUBLIC FACILITIES AUTHORITY CLECO POWER LLC PROJECT (IDR)+/-ss 7.00 12/01/2038 7,062,471
36,125,000 LOUISIANA PUBLIC FACILITIES AUTHORITY COCA COLA BOTTLING COMPANY PROJECT
(IDR, REGIONS BANK LOC)+/-ss 0.95 04/01/2023 36,125,000
2,100,000 LOUISIANA PUBLIC FACILITIES AUTHORITY FRANCISCAN SERIES B (HCFR) 5.00 07/01/2011 2,161,152
2,185,000 LOUISIANA PUBLIC FACILITIES AUTHORITY FRANCISCAN SERIES B (HCFR) 5.00 07/01/2012 2,276,639
1,500,000 PARISH OF IBERVILLE LA DOW CHEMICAL (IDR)+/-ss 5.50 06/01/2029 1,513,965
5,000,000 RAPIDES FINANCE AUTHORITY REVENUE LA CLECO POWER LLC PROJECT
(RESOURCE RECOVERY REVENUE)+/-ss 6.00 10/01/2038 5,239,600
1,665,000 REGIONAL TRANSPORTATION AUTHORITY SERIES A
(SALES TAX REVENUE, NATL-RE FGIC INSURED) 8.00 12/01/2010 1,745,802
3,675,000 ST. TAMMANY PARISH LA DEVELOPMENT DISTRICT GULF OPPORTUNITY ZONE REVENUE
(OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 04/01/2034 3,675,000
2,240,000 ST. TAMMANY PARISH LA DEVELOPMENT DISTRICT GULF OPPORTUNITY ZONE REVENUE
(OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 04/01/2034 2,240,000
3,305,000 ST. TAMMANY PARISH LA DEVELOPMENT DISTRICT GULF OPPORTUNITY ZONE REVENUE
(OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 04/01/2034 3,305,000
5,400,000 ST. TAMMANY PARISH LA DEVELOPMENT DISTRICT GULF OPPORTUNITY ZONE REVENUE
(OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 12/01/2036 5,400,000
25,000,000 WEST BATON ROUGE PARISH LA INDUSTRIAL DISTRICT # 3 DOW CHEMICAL (IDR)+/-ss 5.50 12/01/2023 25,141,500
10,000,000 WEST BATON ROUGE PARISH LA INDUSTRIAL DISTRICT # 3 DOW CHEMICAL (INDUSTRIAL
REVENUE)+/-ss 5.00 10/01/2021 10,044,400
135,809,880
--------------
80 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MAINE: 0.09%
$ 3,200,000 MAINE EDUCATIONAL LOAN AUTHORITY CLASS A SERIES A 1
(OTHER REVENUE, GUARANTEE AGREEMENT) 4.30% 12/01/2012 $ 3,374,400
3,000,000 MAINE FINANCE AUTHORITY WASTE MANAGEMENT
INCORPORATED PROJECT (OTHER REVENUE)+/-ss 2.25 11/01/2015 3,002,460
95,000 MAINE STATE HOUSING AUTHORITY SERIES G2 (HOUSING REVENUE) 4.00 11/15/2024 95,033
6,471,893
--------------
MARYLAND: 0.61%
12,925,000 MARYLAND STATE HEFA ANNE ARUNDEL HEALTH SYSTEM SERIES B
(HCFR, AGM INSURED)+/-ss(a) 1.05 07/01/2034 12,925,000
20,005,000 MARYLAND STATE HEFA SHEPPARD PRATT SERIES B
(HCFR, SUNTRUST BANK LOC)+/-ss 0.35 07/01/2028 20,005,000
12,000,000 MARYLAND STATE HEFA UNIVERSITY OF MARYLAND MEDICAL SYSTEM SERIES E
(HCFR, SUNTRUST BANK LOC)+/-ss 0.30 07/01/2041 12,000,000
1,150,000 MARYLAND STATE INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY
SYNAGRO BALTIMORE SERIES A (OTHER REVENUE) 5.00 12/01/2010 1,156,187
46,086,187
--------------
MASSACHUSETTS: 0.97%
2,010,000 MASSACHUSETTS HEFA CARITAS CHRISTIAN OBLIGATION SERIES B (HCFR) 6.50 07/01/2012 2,080,169
5,250,000 MASSACHUSETTS HEFA NORTHEASTERN UNIVERSITY SERIES T-2
(COLLEGE & UNIVERSITY REVENUE)+/-ss 4.10 10/01/2037 5,365,973
16,146,000 MASSACHUSETTS HEFA SMITH COLLEGE (COLLEGE & UNIVERSITY REVENUE) 0.25 07/01/2029 16,146,000
4,250,000 MASSACHUSETTS INDUSTRIAL FINANCE AGENCY OGDEN HAVERHILL SERIES A
(OTHER REVENUE) 5.35 12/01/2010 4,298,748
19,125,000 MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY NUCLEAR MIX # 3 SERIES 1
(ELECTRIC REVENUE, NATL-RE INSURED)+/-ss(a) 0.14 07/01/2018 17,188,594
1,950,000 MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY NUCLEAR MIX # 4 SERIES 1
(ELECTRIC REVENUE, NATL-RE INSURED)+/-ss(a) 0.24 07/01/2017 1,752,563
4,775,000 MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY PROJECT # 6 SERIES 1
(ELECTRIC REVENUE, NATL-RE INSURED)+/-ss(a) 0.24 07/01/2019 4,291,531
2,120,000 MASSACHUSETTS STATE HEFA PARTNERS HEALTHCARE SYSTEM SERIES F2
(HCFR, AGM INSURED)+/-ss 0.70 07/01/2040 2,120,000
17,700,000 MASSACHUSETTS STATE HFA SERIES F (HOUSING REVENUE, AGM INSURED,
FNMA LOC)+/-ss 0.38 12/01/2037 17,700,000
2,000,000 MASSACHUSETTS STATE INDUSTRIAL FINANCE AGENCY BARBOUR CORPORATE ISSUE
(IDR, FLEET NATIONAL BANK LOC)+/-ss 0.32 08/01/2018 2,000,000
72,943,578
--------------
MICHIGAN: 5.28%
16,395,000 DETROIT MI ANTICIPATION NOTES (SALES TAX REVENUE) 5.00 03/01/2010 16,465,171
700,000 DETROIT MI CAPITAL IMPROVEMENT LIMITED TAX SERIES A 1 (OTHER REVENUE) 5.00 04/01/2013 681,149
3,620,000 DETROIT MI CONVENTION FACILITIES COBO HALL (OTHER REVENUE, NATL-RE INSURED) 5.00 09/30/2010 3,688,056
1,000,000 DETROIT MI SCHOOL DISTRICT SCHOOL BUILDING & SITE IMPROVEMENT SERIES A
(PROPERTY TAX REVENUE, FGIC INSURED) 5.00 05/01/2010 1,010,580
2,000,000 DETROIT MI SECOND LIEN SERIES C (SEWER REVENUE, NATL-RE INSURED) 5.00 07/01/2011 2,070,760
11,700,000 DETROIT MI SEWAGE DISPOSAL (SEWER REVENUE, NATL-RE INSURED)+/-ss 0.50 07/01/2021 11,700,000
3,030,000 DETROIT MI WATER SUPPLY SYSTEM SERIES A (WATER REVENUE, NATL-RE INSURED) 5.40 07/01/2010 3,075,753
1,250,000 KENT HOSPITAL FINANCE AUTHORITY MI PINE REST CHRISTIAN HEALTH
(HCFR, FIFTH THIRD BANK LOC)+/-ss 0.55 10/01/2041 1,250,000
2,825,000 KENT MI HOSPITAL FINANCE AUTHORITY SPECTRUM HEALTH SERIES B (HCFR) 5.00 07/15/2011 2,967,663
98,840,000 KENT MI HOSPITAL FINANCE AUTHORITY SPECTRUM HEALTH SERIES B 2 (HCFR)+/-ss 0.37 01/15/2047 98,840,000
23,850,000 MI PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS (TAX REVENUE,
FSA INSURED)+/-ss 0.50 11/01/2020 23,850,000
5,000,000 MICHIGAN DETROIT FUND POLLUTION SERIES AA (UTILITIES REVENUE, NATL-RE FIGC
INSURED) 6.95 05/01/2011 5,319,900
5,880,000 MICHIGAN HEFA LIMITED OBLIGATION DAVENPORT UNIVERSITY
(COLLEGE & UNIVERSITY REVENUE, FIFTH THIRD BANK LOC)+/-ss 0.55 06/01/2034 5,880,000
Wells Fargo Advantage Municipal Income Funds 81
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MICHIGAN (continued)
$ 1,000,000 MICHIGAN HEFA LIMITED OBLIGATION DAVENPORT UNIVERSITY
(COLLEGE & UNIVERSITY REVENUE, FIFTH THIRD BANK LOC)+/-ss 0.55% 01/01/2036 $ 1,000,000
50,000,000 MICHIGAN HOUSING DEVELOPMENT AUTHORITY SERIES B (HOUSING REVENUE)+/-ss 4.25 06/01/2038 50,000,000
1,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY DETROIT SCHOOL DISTRICT
(OTHER REVENUE, AGM INSURED) 5.00 06/01/2010 1,018,150
22,400,000 MICHIGAN MUNICIPAL BOND AUTHORITY STUDENT AID NOTES
DETROIT SERIES 2009B (OTHER REVENUE) 6.00 01/20/2010 22,425,088
34,000,000 MICHIGAN MUNICIPAL BOND AUTHORITY STUDENT AID NOTES SERIES D
(OTHER REVENUE) 9.50 08/20/2010 33,952,400
1,000,000 MICHIGAN STATE BUILDING AUTHORITY SERIES 1 (LEASE REVENUE,) 5.00 10/15/2010 1,028,490
250,000 MICHIGAN STATE BUILDING AUTHORITY SERIES 1 (LEASE REVENUE,) 3.00 10/15/2011 256,150
6,675,000 MICHIGAN STATE BUILDING AUTHORITY SERIES 1 (LEASE REVENUE,) 5.00 10/15/2011 7,073,631
7,120,000 MICHIGAN STATE COMPREHENSIVE TRANSITION (FSA INSURED)+/-ss 0.48 05/15/2023 7,120,000
2,750,000 MICHIGAN STATE COP SERIES A (LEASE REVENUE, NATL-RE INSURED)+/-ss 5.00 09/01/2031 2,816,358
2,925,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY ASCENSION HEALTH CREDIT SERIES A
(HCFR, NATL-RE INSURED) 5.50 11/15/2010 2,965,979
2,500,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY ASCENSION HEALTH CREDIT SERIES A
(HOSPITAL REVENUE, NATL-RE INSURED) 6.00 11/15/2012 2,535,900
7,500,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY HEALTHCARE EQUIPMENT
LOAN PROGRAM SERIES C 24 (HCFR, FIFTH THIRD BANK LOC)+/-ss 0.55 12/01/2032 7,500,000
15,000,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY HEALTHCARE EQUIPMENT
LOAN PROGRAM SERIES C SUBSERIES C 12 (HCFR, FIFTH THIRD BANK LOC)+/-ss 0.55 12/01/2032 15,000,000
7,500,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY HEALTHCARE EQUIPMENT
LOAN PROGRAM SERIES C SUBSERIES C 17 (HCFR, FIFTH THIRD BANK LOC)+/-ss 0.55 12/01/2032 7,500,000
7,500,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY HEALTHCARE EQUIPMENT
LOAN PROGRAM SERIES C SUBSERIES C 22 (HCFR, FIFTH THIRD BANK LOC)+/-ss 0.55 12/01/2032 7,500,000
1,550,000 MICHIGAN STATE HOSPITAL FINANCE AUTHORITY MCLAREN HEALTH CARE (HCFR) 5.00 05/15/2010 1,565,252
2,250,000 MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY SERIES C (HOUSING REVENUE) 3.05 06/01/2010 2,255,783
4,000,000 MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY SERIES C (HOUSING REVENUE) 3.15 12/01/2010 4,022,640
7,750,000 MICHIGAN STATE STRATEGIC FUND DETROIT ED (ELECTRICAL POWER REVENUE)+/-ss 3.05 08/01/2024 7,818,665
3,695,000 MICHIGAN STRATEGIC FUND CONSUMERS ENERGY COMPANY PROJECT (IDR) 4.25 06/15/2010 3,722,528
1,000,000 MICHIGAN STRATEGIC WASTE MANAGEMENTS INCORPORATED PROJECT
(SEWER REVENUE)+/-ss 4.63 12/01/2012 1,034,560
9,370,000 WAYNE CHARTER COUNTY MI DETROIT METROPOLITAN WAYNE COUNTY AIRPORT SERIES A
(AIRPORT REVENUE, NATL-RE INSURED) 5.25 12/01/2011 9,436,059
12,000,000 WAYNE CHARTER COUNTY MI DETROIT METROPOLITAN WAYNE COUNTY SERIES A
(AIRPORT REVENUE, NATL-RE INSURED) 5.25 12/01/2010 12,088,560
4,000,000 WAYNE CHARTER COUNTY MI DETROIT METROPOLITAN WAYNE COUNTY SERIES A
(AIRPORT REVENUE, NATL-RE INSURED) 5.25 12/01/2012 4,027,120
2,255,000 WAYNE COUNTY AIRPORT AUTHORITY DETROIT METROPOLITAN WAYNE COUNTY AIRPORT
(AIRPORT REVENUE, NATL-RE INSURED) 5.00 12/01/2011 2,305,422
1,000,000 WESTERN TOWNSHIPS MI UTILITIES AUTHORITY SEWAGE DISPOSAL SYSTEM
(PROPERTY TAX REVENUE) 3.00 01/01/2011 1,019,450
1,000,000 WESTERN TOWNSHIPS MI UTILITIES AUTHORITY SEWAGE DISPOSAL SYSTEM
(PROPERTY TAX REVENUE) 3.00 01/01/2012 1,030,250
396,817,467
--------------
MINNESOTA: 0.49%
10,900,000 MINNEAPOLIS & ST. PAUL MN HOUSING & RDA HEALTHSPAN SERIES B
(HCFR, AMBAC INSURED)+/-ss(a) 0.36 11/15/2017 10,218,750
3,000,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SERIES B
(AIRPORT REVENUE) 5.00 01/01/2012 3,171,960
4,765,000 MINNEAPOLIS & ST. PAUL MN METROPOLITAN AIRPORTS COMMISSION SERIES B
(AIRPORT REVENUE) 5.00 01/01/2013 5,127,283
4,250,000 ROSEVILLE MN PRIVATE SCHOOL FACILITIES REVENUE NORTHWESTERN COLLEGE PROJECT
(EDUCATIONAL FACILITIES REVENUE, MARSHALL & ILSLAY BANK LOC)+/-ss 2.47 11/01/2022 4,250,000
82 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MINNESOTA (continued)
$ 1,500,000 ROSEVILLE MN ROSEPOINTE I PROJECT SERIES C
(HOUSING REVENUE, GUARANTEE AGREEMENT) 8.00% 12/01/2033 $ 1,599,660
1,100,000 ST. PAUL MN HOUSING & RDA ALLINA HEALTH SYSTEM SERIES A 1 (HCFR) 4.00 11/15/2010 1,124,585
1,300,000 ST. PAUL MN HOUSING & RDA ALLINA HEALTH SYSTEM SERIES A 1 (HCFR) 4.00 11/15/2011 1,348,386
1,400,000 ST. PAUL MN HOUSING & RDA ALLINA HEALTH SYSTEM SERIES A 1 (HCFR) 5.00 11/15/2012 1,502,746
1,500,000 ST. PAUL MN HOUSING & RDA ALLINA HEALTH SYSTEM SERIES A 1 (HCFR) 5.00 11/15/2013 1,630,725
1,800,000 ST. PAUL MN HOUSING & RDA PUBLIC RADIO PROJECT
(OTHER REVENUE, ALLIED IRISH BANK PLC LOC)+/-ss 0.36 05/01/2022 1,800,000
1,800,000 ST. PAUL MN HOUSING & RDA VARIOUS GOODWILL/EASTER SEALS PROJECTS
(IDR, US BANK LOC)+/-ss 0.38 08/01/2025 1,800,000
2,960,000 ST. PAUL MN PORT AUTHORITY SERIES N 1 (IDR, US BANK NA LOC)+/-ss 3.25 02/01/2028 3,030,389
36,604,484
--------------
MISSISSIPPI: 1.84%
3,310,000 JACKSON STATE UNIVERSITY EDUCATIONAL BUILDING CORPORATION
CAMPUS FACILITIES PROJECT (LEASE REVENUE)+/-ss 5.00 03/01/2034 3,417,906
6,560,000 MISSISSIPPI BUSINESS FINANCE CORPORATION BEST BUY PLAZA LP PROJECT
(ECONOMIC DEVELOPMENT REVENUE, REGIONS BANK LOC)+/-ss 0.95 09/01/2033 6,560,000
20,000,000 MISSISSIPPI BUSINESS FINANCE CORPORATION COAST ELECTRIC POWER
ASSOCIATION SERIES C (ELECTRIC REVENUE)+/-ss 1.88 05/01/2037 20,007,400
9,900,000 MISSISSIPPI BUSINESS FINANCE CORPORATION DDR GULF SHIP LLC PROJECT
PHASE III (IDR, REGIONS BANK LOC)+/-ss 0.95 06/01/2028 9,900,000
16,000,000 MISSISSIPPI BUSINESS FINANCE CORPORATION DDR GULFPORT PROMENADE PROJECT
(IDR, REGIONS BANK LOC)+/-ss 0.95 12/01/2037 16,000,000
12,750,000 MISSISSIPPI BUSINESS FINANCE CORPORATION GULF SHIP LLC PROJECT
(OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 06/01/2026 12,750,000
6,195,000 MISSISSIPPI BUSINESS FINANCE CORPORATION HATTIESBURG CLINIC
(HCFR, REGIONS BANK LOC)+/-ss 0.95 11/01/2026 6,195,000
30,400,000 MISSISSIPPI BUSINESS FINANCE CORPORATION HATTIESBURG PROJECT A
(IDR, MARSHALL & ILSLEY BANK LOC)+/-ss 2.47 10/01/2033 30,400,000
25,000,000 MISSISSIPPI BUSINESS FINANCE CORPORATION MISSISSIPPI GULF OPPORTUNITY ZONE
(IDR, FHLB LOC)+/-ss 0.26 05/01/2032 25,000,000
5,640,000 MISSISSIPPI BUSINESS FINANCE CORPORATION TRI STATE TRUCK CENTER
INCORPORATED PROJECT (OTHER REVENUE, REGIONS BANK LOC)+/-ss 0.95 03/01/2033 5,640,000
1,500,000 MISSISSIPPI BUSINESS FINANCE CORPORATION WASTE MANAGEMENT
INCORPORATED PROJECT (SOLID WASTE REVENUE)+/-ss 6.88 03/01/2029 1,509,465
750,000 MISSISSIPPI DEVELOPMENT BANK SPECIAL OBLIGATION LIMITED
TAX NOTE SERIES B 1 (HCFR, ASSURED GUARANTY) 3.00 07/01/2011 769,853
138,149,624
--------------
MISSOURI: 1.13%
3,105,000 KANSAS CITY MO SCHOOL DISTRICT BUILDING CORPORATION SERIES A
(LEASE REVENUE, NATL-RE FGIC INSURED) 5.00 02/01/2010 3,111,241
1,895,000 KANSAS CITY MO SCHOOL DISTRICT BUILDING CORPORATION SERIES A
(LEASE REVENUE, NATL-RE FGIC INSURED) 5.00 02/01/2011 1,941,200
1,000,000 KANSAS CITY MO SERIES E (TAX REVENUE)## 3.43 02/01/2012 947,000
2,405,000 MISSOURI STATE ENVIRONMENTAL IMPROVEMENT & ENERGY RESOURCES AUTHORITY PCR
ASSOCIATED ELECTRIC COOPERATIVE PROJECT (RESOURCE RECOVERY REVENUE)+/-ss 4.38 12/01/2034 2,475,587
2,500,000 MISSOURI STATE HEFA PRIVATE EDUCATION SERIES B
(COLLEGE & UNIVERSITY REVENUE) 4.00 04/23/2010 2,512,050
1,500,000 MISSOURI STATE HEFA ROCKHURST UNIVERSITY PRIVATE EDUCATION SERIES C
(COLLEGE & UNIVERSITY REVENUE) 4.00 04/23/2010 1,507,230
1,820,000 MISSOURI STATE HEFA ST. FRANCIS MEDICAL CENTER SERIES A
(HCFR, BANK OF AMERICA NA LOC)+/-ss 0.25 06/01/2026 1,820,000
2,680,000 MISSOURI STATE HEFA ST. JOSEPH SERIES A (PRIVATE SCHOOL REVENUE,
ALLIED IRISH BANK PLC LOC)+/-ss 0.45 12/01/2029 2,680,000
Wells Fargo Advantage Municipal Income Funds 83
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MISSOURI (continued)
$ 21,600,000 MISSOURI STATE HIGHWAY & TRANSPORTATION COMMISSION MULTI MODAL THIRD LIEN B2
(TOLL ROAD REVENUE, STATE STREET B&T COMPANY LOC)+/-ss 0.18% 05/01/2015 $ 21,600,000
45,000 MISSOURI STATE HOUSING DEVELOPMENT COMMUNITY SERIES C1
(HOUSING REVENUE, GNMA/FNMA INSURED) 4.80 03/01/2019 45,325
1,125,000 MISSOURI STATE SINGLE FAMILY HOMEOWNER LOAN SERIES C1
(HOUSING REVENUE LOC, GNMA/FNMA INSURED) 7.15 03/01/2032 1,227,668
470,000 ST. LOUIS MO FLOATERS SERIES 004 (AIRPORT REVENUE, FSA INSURED,
DEXIA CREDIT LOCAL LOC)+/-ss 0.33 07/01/2026 470,000
38,075,000 ST. LOUIS MO FLOATERS SERIES 3431(AIRPORT REVENUE, NATL-RE INSURED)+/- 0.50 07/01/2017 38,075,000
1,000,000 ST. LOUIS MO LAMBERT ST. LOUIS INTERNATIONAL AIRPORT SERIES A 2
(AIRPORT REVENUE) 4.00 07/01/2010 1,010,480
2,000,000 ST. LOUIS MO LAMBERT ST. LOUIS INTERNATIONAL AIRPORT SERIES A 2
(AIRPORT REVENUE) 4.00 07/01/2011 2,053,900
3,250,000 ST. LOUIS MUNICIPAL FINANCE CORPORATION CONVENTION CENTER PROJECT
(LEASE REVENUE, AMBAC INSURED) 5.25 07/15/2010 3,297,450
84,774,131
--------------
NEBRASKA: 0.51%
2,000,000 CENTRAL PLAINS NE ENERGY PROJECT # 1 SERIES A (NATURAL GAS REVENUE) 5.00 12/01/2011 2,126,660
7,140,000 CENTRAL PLAINS NE ENERGY PROJECT # 1 SERIES A (NATURAL GAS REVENUE) 5.00 12/01/2012 7,606,599
6,600,000 CENTRAL PLAINS NE ENERGY PROJECT # 1 SERIES A (NATURAL GAS REVENUE) 5.00 12/01/2014 7,028,076
19,280,000 CENTRAL PLAINS NE ENERGY PROJECT # 1 SERIES A (UTILITIES REVENUE) 5.00 12/01/2013 20,600,294
975,000 CENTRAL PLAINS NE ENERGY PROJECT # 1(UTILITIES REVENUE)+/-ss 0.48 12/01/2010 939,656
38,301,285
--------------
NEVADA: 0.13%
200,000 CLARK COUNTY NV AIRPORT IMPROVEMENT REVENUE SERIES A
(AIRPORT REVENUE, NATL-RE INSURED)+/-ss 1.50 07/01/2012 200,000
2,650,000 CLARK COUNTY NV NEVADA POWER COMPANY PCR PROJECT SERIES D (IDR, ACA INSURED) 5.30 10/01/2011 2,642,766
4,000,000 CLARK COUNTY NV SERIES A (PROPERTY TAX REVENUE)+/-ss 0.30 07/01/2027 4,000,000
1,000,000 CLARK COUNTY NV SUB LIEN SERIES A 1 (AIRPORT REVENUE, AMBAC INSURED) 5.00 07/01/2012 1,058,350
1,000,000 CLARK COUNTY NV SUB LIEN SERIES A 1 (AIRPORT REVENUE, NATL-RE FGIC INSURED) 5.25 07/01/2012 1,064,370
865,000 NEVADA HOUSING DIVISION SERIES B (SFHR) 4.80 10/01/2031 878,805
9,844,291
--------------
NEW HAMPSHIRE: 0.54%
1,015,000 MANCHESTER NH HOUSING & RDA SERIES A (OTHER REVENUE, ACA INSURED) 5.90 01/01/2010 1,015,000
2,410,000 MANCHESTER NH SERIES B (AIRPORT REVENUE) 5.00 01/01/2011 2,480,493
6,000,000 NEW HAMPSHIRE BUSINESS FINANCE AUTHORITY REFUNDING
THE UNITED ILLUMINATING SERIES A (PCR)+/-ss 6.88 12/01/2029 6,445,440
13,165,000 NEW HAMPSHIRE BUSINESS FINANCE AUTHORITY THE UNITED ILLUMINATING
COMPANY PROJECT (PCR)+/-ss 7.13 07/01/2027 14,003,347
15,750,000 NEW HAMPSHIRE HEFA SERIES 11819 (OTHER REVENUE)+/-ss++ 0.35 10/01/2017 15,750,000
1,000,000 NEW HAMPSHIRE STATE BUSINESS FINANCE AUTHORITY PCR
(RESOURCE RECOVERY REVENUE, AMBAC INSURED)+/-ss 3.65 07/01/2027 999,840
40,694,120
--------------
NEW JERSEY: 1.16%
305,000 CAMDEN COUNTY NJ IMPROVEMENT AUTHORITY SERIES A
(LEASE REVENUE, ASSURED GUARANTY) 4.00 12/01/2011 323,965
2,225,000 CAMDEN COUNTY NJ IMPROVEMENT AUTHORITY SERIES A
(LEASE REVENUE, ASSURED GUARANTY) 4.00 12/01/2012 2,410,899
1,210,000 GLOUCESTER COUNTY NJ IMPROVEMENT AUTHORITY WASTE MANAGEMENT
INCORPORATED PROJECT B (RESOURCE RECOVERY REVENUE)+/-ss 3.38 12/01/2029 1,209,806
2,700,000 NEW JERSEY EDA BAYONNE IMPROVEMENT PROJECT SERIES B (IDR, SUNTRUST BANK
LOC)+/-ss 0.29 12/01/2027 2,700,000
84 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
NEW JERSEY (continued)
$ 2,270,000 NEW JERSEY EDA CIGARETTE TAX (TOBACCO & LIQUOR TAXES REVENUE, AGM INSURED) 5.00% 06/15/2010 $ 2,284,392
8,560,000 NEW JERSEY EDA CIGARETTE TAX (TOBACCO & LIQUOR TAXES REVENUE, FGIC INSURED) 5.00 06/15/2011 8,721,014
5,230,000 NEW JERSEY HFFA AHS HOSPITAL CORPORATION SERIES A (HCFR) 5.00 07/01/2010 5,308,973
1,000,000 NEW JERSEY STATE TURNPIKE AUTHORITY SERIES C2
(TOLL ROAD REVENUE, AGM INSURED)+/-ss 0.38 01/01/2024 1,000,000
2,230,000 NEW JERSEY STATE TURNPIKE AUTHORITY SERIES D
(TOLLS ROAD REVENUE, NATL-RE FGIC INSURED, SOCIETE GENERALE LOC)+/-ss 0.28 01/01/2018 2,230,000
1,500,000 NEWARK NJ TAX APPEAL NOTES SERIES H (PROPERTY TAX REVENUE) 3.25 12/16/2010 1,507,485
23,710,000 PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 4003 ESSEX COUNTY
(AMBAC INSURED)+/-ss 0.50 12/15/2021 23,710,000
7,325,000 PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 4036
(TOLL ROAD REVENUE, AMBAC INSURED)+/-ss 0.50 01/01/2025 7,325,000
27,690,000 PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 481+/-ss 0.70 06/01/2023 27,690,000
750,000 TOBACCO SETTLEMENT FINANCING CORPORATION NJ SERIES 1A (OTHER REVENUE) 4.13 06/01/2010 753,593
87,175,127
--------------
NEW MEXICO: 0.21%
3,950,000 FARMINGTON NM PCR SOUTHERN CALIFORNIA EDISON SERIES A
(ELECTRIC REVENUE, FGIC INSURED)+/-ss 3.55 04/01/2029 3,965,050
1,000,000 GALLUP NM PCR TRI-STATE GENERATION (OTHER REVENUE, AMBAC INSURED) 5.00 08/15/2010 1,017,370
10,565,000 PUEBLO OF SANDIA NM+/-ss 0.70 03/01/2015 10,565,000
15,547,420
--------------
NEW YORK: 2.64%
160,000 CHAUTAUQUA COUNTY NY IDAG JAMESTOWN COMMUNITY SERIES A
(COLLEGE & UNIVERSITY REVENUE, CITIZENS BANK NA LOC)+/-ss 0.60 08/01/2027 160,000
3,180,000 GUILDERLAND NY IDA WILDWOOD PROJECT SERIES A
(OTHER REVENUE, KEYBANK NA LOC)+/-ss 0.60 07/01/2032 3,180,000
1,000,000 HEMPSTEAD TOWN NY IDAG AMERICAN FUEL PROJECT PUTABLE (IDR)ss 5.00 12/01/2010 1,001,520
9,000,000 LONG ISLAND POWER AUTHORITY SERIES D (UTILITIES REVENUE, AGM INSURED)+/-ss 0.25 12/01/2029 9,000,000
26,310,000 LONG ISLAND POWER AUTHORITY SERIES G (UTILITIES REVENUE, AGM INSURED)+/-ss 0.25 12/01/2029 26,310,000
1,000,000 LONG ISLAND POWER AUTHORITY SERIES I (UTILITIES REVENUE, FSA INSURED)+/-ss 0.43 12/01/2029 1,000,000
10,700,000 LONG ISLAND POWER AUTHORITY SERIES K (UTILITIES REVENUE, FSA INSURED)+/-ss 0.33 12/01/2029 10,700,000
36,450,000 LONG ISLAND POWER AUTHORITY SERIES L (UTILITIES REVENUE, FSA INSURED)+/-ss 0.25 12/01/2029 36,450,000
14,225,000 NEW YORK NY FISCAL 2008 SUBSERIES A 3 (PROPERTY TAX REVENUE, AGM
INSURED)+/-ss 0.75 08/01/2026 14,225,000
1,785,000 NEW YORK NY IDAG CAPITAL APPRECIATION YANKEE STADIUM PILOT
(RECREATIONAL FACILITIES REVENUE, ASSURED GUARANTY)## 3.99 03/01/2011 1,751,585
3,000,000 NEW YORK NY IDAG TERMINAL ONE GROUP ASSOCIATION PROJECT (LEASE REVENUE) 5.00 01/01/2010 3,000,000
2,015,000 NEW YORK NY IDAG TERMINAL ONE GROUP ASSOCIATION PROJECT (LEASE REVENUE) 5.00 01/01/2011 2,063,038
3,475,000 NEW YORK NY SUBSERIES C 3 (PROPERTY TAX REVENUE, AGM INSURED)+/-ss 0.65 01/01/2032 3,475,000
6,400,000 NEW YORK NY SUBSERIES H 6 (PROPERTY TAX REVENUE, NATL-RE INSURED)+/-ss 0.27 08/01/2013 6,400,000
1,500,000 NEW YORK NY SUBSERIES I 8 (PROPERTY TAX REVENUE, BANK OF AMERICA NA
LOC)+/-ss 0.25 04/01/2036 1,500,000
14,025,000 NEW YORK NY TRANSITIONAL FINANCE AUTHORITY FUTURE TAX SECTION SUBSERIES C2
(SALES TAX REVENUE, AGM INSURED)+/-ss 0.73 11/01/2027 14,025,000
8,000,000 NEW YORK STATE DORMITORY AUTHORITY FLOATERS 3675 (INCOME TAX REVENUE)+/-ss 0.50 03/15/2028 8,000,000
1,275,000 NEW YORK STATE ENERGY R&D AUTHORITY PCR KEYSPAN GENERATION SEREIS A
(IDR, AMBAC INSURED)+/-ss 3.00 10/01/2028 1,275,000
11,500,000 NEW YORK STATE ENERGY R&D AUTHORITY PCR NY STATE ELECTRIC & GAS SERIES D1
(NATURAL GAS REVENUE, JPMORGAN CHASE BANK LOC)+/-ss 0.23 10/01/2029 11,500,000
1,900,000 NEW YORK STATE ENVIRONMENTAL FACILITIES CORPORATION WASTE
MANAGEMENT PROJECT SERIES A (IDR)+/-ss 4.55 05/01/2012 1,932,718
3,025,000 NEW YORK STATE GOOD SAMARITAN HOSPITAL MEDICAL CENTER SERIES A
(HCFR, NATL-RE INSURED) 5.70 07/01/2013 3,060,786
650,000 NEW YORK STATE URBAN DEVELOPMENT CAPITAL APPRECIATION STATE OFFICE SERIES S
(LEASE REVENUE)## 6.00 01/01/2011 615,901
Wells Fargo Advantage Municipal Income Funds 85
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
NEW YORK (continued)
$ 14,400,000 NIAGARA FALLS BRIDGE COMMISSION SERIES A
(TOLL ROAD REVENUE, ASSURED GUARANTY)+/-ss 0.30% 10/01/2019 $ 14,400,000
4,000,000 PULASKI NY CENTRAL SCHOOL DISTRICT BOND ANTICIPATION NOTES
(PROPERTY TAX REVENUE, STATE AID WITHHOLDING) 3.00 08/13/2010 4,035,760
9,590,000 PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS 4291+/-ss 1.25 06/01/2031 9,590,000
1,570,000 TRIBOROUGH NY BRIDGE & TUNNEL AUTHORITY SERIES C
(TOLL ROAD REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.27 01/01/2032 1,570,000
8,030,000 UTICA NY IDAG UTICA COLLEGE PROJECT SERIES B
(COLLEGE & UNIVERSITY REVENUE, CITIZENS BANK LOC)+/-ss 0.60 10/01/2034 8,030,000
198,251,308
--------------
NORTH CAROLINA: 2.20%
250,000 ALBEMARLE NC HOSPITAL AUTHORITY (HCFR) 5.00 10/01/2010 251,998
13,915,000 CHARLOTTE NC SERIES A (AIRPORT REVENUE, NATL-RE INSURED)+/-ss 6.00 07/01/2017 13,915,000
1,100,000 NORTH CAROLINA CAPITAL FACILITIES FINANCE AGENCY JOHNSON & WALES UNIVERSITY
PROJECT SERIES A (COLLEGE & UNIVERSITY REVENUE, XLCA INSURED) 5.00 04/01/2011 1,125,190
6,600,000 NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY SERIES C
(ELECTRIC REVENUE, NATL-RE INSURED) 7.00 01/01/2013 7,062,726
73,261,000 NORTH CAROLINA MEDICAL CARE COMMISSION CAROMONT HEALTH
(HCFR, ASSURED GUARANTY)+/-ss 0.85 02/15/2035 73,261,000
3,205,000 NORTH CAROLINA MEDICAL CARE COMMISSION FIRSTHEALTH CAROLINA SERIES C (HCFR) 3.00 10/01/2012 3,283,362
64,350,000 NORTH CAROLINA MEDICAL CARE COMMISSION NOVANT HEALTH SERIES A (HCFR)+/-ss 0.27 11/01/2028 64,350,000
2,000,000 NORTH CAROLINA MUNICIPAL POWER AGENCY # 1 SERIES B (ELECTRIC REVENUE) 6.38 01/01/2013 2,020,000
165,269,276
--------------
NORTH DAKOTA: 0.09%
1,700,000 FARGO ND MERITCARE OBLIGATED GROUP SERIES A (HCFR, NATL-RE INSURED) 5.50 06/01/2011 1,722,508
1,195,000 GRAND FORKS ND ALTRU HEALTH SYSTEM OBLIGATION GROUP (HCFR, NATL-RE INSURED) 5.30 08/15/2010 1,197,725
865,000 GRAND FORKS ND UNITED HOSPITAL OBLIGATED GROUP (HCFR, NATL-RE INSURED) 6.63 12/01/2010 867,439
3,200,000 NORTH DAKOTA RURAL WATER FINANCE CORPORATION PUBLIC PROJECTS
CONSTRUCTION NOTES SERIES A 2 (WATER REVENUE)+/-ss 1.35 10/01/2010 3,201,088
6,988,760
--------------
OHIO: 1.55%
2,300,000 BLUE ASH OHIO URSULINE ACADEMY PROJECT (OTHER REVENUE, FIFTH THIRD BANK
LOC)+/-ss 0.55 06/01/2031 2,300,000
1,900,000 BUCKEYE OH TOBACCO SETTLEMENT FINANCING AUTHORITY SERIES A1 (OTHER REVENUE) 4.13 06/01/2010 1,909,101
1,000,000 BUCKEYE OH TOBACCO SETTLEMENT FINANCING AUTHORITY SERIES A1 (OTHER REVENUE) 5.00 06/01/2010 1,008,390
1,105,000 CUYAHOGA COUNTY OH UNIVERSITY HOSPITAL HEALTH SYSTEM PROJECT SERIES A (HCFR) 5.50 01/15/2011 1,107,453
3,630,000 CUYAHOGA COUNTY OH UNIVERSITY HOSPITAL HEALTH SYSTEM PROJECT SERIES A
(HCFR, NATL-RE INSURED) 5.50 01/15/2010 3,634,102
2,155,000 CUYAHOGA COUNTY OH UNIVERSITY HOSPITAL HEALTH SYSTEM PROJECT SERIES B
(HCFR, NATL-RE INSURED) 5.40 01/15/2010 2,157,349
1,170,000 HAMILTON COUNTY OH EDR STATE XAVIER HIGH SCHOOL PROJECT
(PRIVATE SCHOOLS REVENUE, FIFTH THIRD BANK LOC)+/-ss 0.55 04/01/2028 1,170,000
1,000,000 LORAIN OHIO PORT AUTHORITY HORIZON ACTIVITIES CENTER PROJECT
(FIFTH THIRD BANK LOC)+/-ss 0.55 07/01/2028 1,000,000
7,140,000 MONTGOMERY COUNTY OH CATHOLIC HEALTH SERIES B (HCFR)+/-ss 5.00 05/01/2029 7,734,905
3,000,000 MONTGOMERY COUNTY OH CATHOLIC HEALTH SERIES C 2 (HCFR)+/-ss 4.10 10/01/2041 3,134,160
6,580,000 NORTHWESTERN OH WATER & SEWER DISTRICT BOND ANTICIPATION NOTES SERIES B
(SEWER REVENUE) 4.25 06/09/2010 6,617,769
13,200,000 OHIO STATE AIR QUALITY DEVELOPMENT AUTHORITY AIR QUALITY DEVELOPMENT
AUTHORITY POWER PROJECT (ELECTRIC, POWER & LIGHT REVENUE, NATL-RE
INSURED)+/-ss 4.85 08/01/2040 13,698,696
1,000,000 OHIO STATE AIR QUALITY DEVELOPMENT AUTHORITY PCR FIRSTENERGY SERIES A
(IDR, KEYBANK NA LOC)+/-ss 0.40 12/01/2023 1,000,000
19,900,000 OHIO STATE AIR QUALITY DEVELOPMENT AUTHORITY PCR FIRSTENERGY SERIES D
(IDR)+/-ss 4.75 08/01/2029 20,344,566
86 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
OHIO (continued)
$ 5,500,000 Ohio State Water Development Authority PCR First Energy Series B
(Resource Recovery Revenue)+/-ss 3.00% 10/01/2033 $ 5,531,955
5,900,000 Ohio State Water Development Authority PCR FirstEnergy Series A
(Water Revenue)+/-ss 4.75 08/01/2029 6,091,278
310,000 Ohio State Water Development Authority Waste Management Project
(Resource Recovery Revenue)+/-ss 1.00 07/01/2021 310,000
290,000 Olmsted Falls OH Bond Anticipation Notes Fire Station 2.50 08/18/2010 291,839
1,865,000 Olmsted Falls OH Bond Anticipation Notes Various Purpose Improvement 2.50 08/18/2010 1,876,824
1,130,000 Parma Heights OH Bond Anticipation Notes (Property Tax Revenue) 2.25 09/08/2010 1,135,345
14,170,000 Puttable Floating Option Tax Exempt Receipts
(Other Revenue, NATL-RE Insured)+/-ss 0.75 04/01/2026 14,170,000
3,000,000 Toledo OH Bond Anticipation Notes Capital Improvement Series
(Property Tax Revenue) 3.25 05/27/2010 3,006,930
4,280,000 Toledo OH Special GO (Other Revenue) 4.00 06/01/2011 4,358,666
4,000,000 Warrensville Heights OH Anticipation Notes Series 1 (Property Tax Revenue) 3.50 02/03/2010 4,004,720
4,497,000 Warrensville Heights OH Anticipation Notes Series 4 (Property Tax Revenue) 2.75 09/16/2010 4,523,532
2,183,936 Waterville OH Bond Anticipation Notes (Property Tax Revenue) 3.50 08/05/2010 2,197,389
2,330,000 Woodlawn OH Community Center (Property Tax Revenue) 4.00 11/24/2010 2,361,432
116,676,401
--------------
OKLAHOMA: 0.17%
4,670,000 Oklahoma City Airport Trust Lien 27th Series B (Airport Revenue, AGM
Insured) 5.38 07/01/2011 4,754,294
630,000 Oklahoma Housing Finance Agency SFMR Homeowner Loan Program Series D2
(Housing Revenue, GNMA/FNMA Insured) 7.10 09/01/2028 638,360
4,090,000 Oklahoma School District Anticipation Program COP
(Property Tax Revenue, Staid Aid Withholding) 1.75 06/30/2010 4,096,749
920,000 South Oklahoma City Hospital Trust (HCFR) 9.75 02/01/2013 926,624
1,000,000 Tulsa County OK Industrial Authority Jenks Public School (Lease Revenue) 5.00 09/01/2011 1,062,090
935,000 Tulsa OK Airport Improvement Trust Series A (Airport Revenue) 3.00 06/01/2010 937,450
175,000 Tulsa OK Airport Improvement Trust Series A (Airport Revenue) 3.00 06/01/2011 175,914
12,591,481
--------------
OREGON: 0.04%
2,500,000 Gilliam County OR Waste Management Series A (Other Revenue)+/-ss 6.00 08/01/2025 2,524,925
280,000 Oregon State Housing & Community Services Department Series G (SFMR) 4.70 07/01/2025 271,950
2,796,875
--------------
PENNSYLVANIA: 5.67%
7,000,000 Allegheny County PA (Sewer Revenue, NATL-RE Insured) 5.50 12/01/2020 7,353,080
1,260,000 Allegheny County PA Airport Authority Pittsburgh International Airport
(Airport Revenue, NATL-RE FGIC Insured) 5.63 01/01/2010 1,260,000
5,000,000 Allegheny County PA Airport Authority Pittsburgh International Airport
(Airport Revenue, NATL-RE Insured) 5.75 01/01/2011 5,137,950
3,965,000 Allegheny County PA Airport Authority Pittsburgh International Airport
Series A
(Airport Revenue, FGIC Insured)+/-ss 4.00 01/01/2010 3,965,000
4,480,000 Allegheny County PA Airport Authority Pittsburgh International Airport
Series A
(Airport Revenue, NATL-RE Insured)+/-ss 4.00 01/01/2010 4,480,000
4,995,000 Allegheny County PA Airport Authority Pittsburgh International Airport
Series A
(Airport Revenue, NATL-RE insured)+/-ss 4.00 01/01/2011 5,041,404
11,390,000 Allegheny County PA Airport Authority Pittsburgh International Airport
Series A 1
(Airport Revenue, NATL-RE Insured) 5.75 01/01/2010 11,390,000
1,795,000 Allegheny County PA Hospital Development Authority Health
System Western Pennsylvania Series A (HCFR) 5.00 11/15/2010 1,783,440
2,525,000 Allegheny County PA IDA Duquense Light PCR
(Electric, Power & Light Revenue, AMBAC Insured)+/-ss 4.05 09/01/2011 2,584,817
Wells Fargo Advantage Municipal Income Funds 87
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
PENNSYLVANIA (continued)
$ 3,650,000 BEAVER COUNTY IDA PCR FIRSTENERGY SERIES B (IDR)+/-ss 3.00% 10/01/2047 $ 3,671,207
2,795,000 BLAIR COUNTY PA ALTOONA REGIONAL HEALTH SYSTEM (HCFR) 4.00 11/15/2011 2,860,822
2,865,000 BLAIR COUNTY PA ALTOONA REGIONAL HEALTH SYSTEM (HCFR) 4.00 11/15/2012 2,933,101
1,315,000 BLAIR COUNTY PA ALTOONA REGIONAL HEALTH SYSTEM (HCFR) 4.00 11/15/2013 1,342,155
3,190,000 CARBON COUNTY PA IDA PANTHER CREEK PARTNERS PROJECT (OTHER REVENUE) 6.65 05/01/2010 3,210,735
685,000 DELAWARE COUNTY PA AUTHORITY NEUMANN COLLEGE (COLLEGE & UNIVERSITY REVENUE) 5.13 10/01/2011 715,935
4,790,000 DELAWARE COUNTY PA IDA RESOURCE RECOVERY FACILITY SERIES A
(RESOURCE RECOVERY REVENUE) 6.10 07/01/2013 4,791,102
75,800,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY MODE 1
(OTHER REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.30 08/01/2016 75,800,000
4,300,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES 1985 B
(OTHER REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2020 4,300,000
5,000,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES A
(OTHER REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2019 5,000,000
6,300,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES A
(OTHER REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2020 6,300,000
30,800,000 DELAWARE VALLEY PA REGIONAL FINANCIAL AUTHORITY SERIES D
(OTHER REVENUE, BAYERISCHE LANDESBANK LOC)+/-ss 0.32 12/01/2020 30,800,000
1,085,000 ERIE COUNTY PA HAMOT HEALTH FOUNDATION SERIES A (HCFR, AMBAC INSURED) 5.38 05/15/2010 1,087,647
1,165,000 ERIE COUNTY PA ST. VINCENTS HEALTH SERIES A (HOSPITAL REVENUE) 4.00 07/01/2011 1,176,499
2,115,000 GALLERY CERTIFICATE TRUST PA (AUTO PARKING REVENUE, FSA INSURED) 4.50 02/15/2013 2,120,309
6,420,000 HARRISBURG PA AUTHORITY RESOURCE RECOVERY FACILITY CAPITAL APPRECIATION
LIMITED OBLIGATION SERIES C (RESOURCE RECOVERY REVENUE)## 4.41 12/15/2010 6,156,010
20,400,000 HARRISBURG PA AUTHORITY RESOURCE RECOVERY FACILITY SERIES D 1
(OTHER REVENUE, AGM INSURED)+/-ss 6.75 12/01/2033 20,948,352
10,495,000 JPMORGAN CHASE PUTTERS/DRIVERS TRUST SERIES 3603Z (OTHER REVENUE)+/-ss++ 0.25 07/01/2027 10,495,000
890,000 LYCOMING COUNTY PA SUSQUEHANNA HEALTH SYSTEM PROJECT A (HCFR) 4.00 07/01/2012 905,264
455,000 MONROE COUNTY HOSPITAL AUTHORITY POCONO MEDICAL CENTER (HCFR) 5.00 01/01/2010 455,000
1,185,000 MONTGOMERY COUNTY IDA ACTS RETIREMENT LIFE COMMUNITY SERIES A 1 (HCFR) 5.00 11/15/2010 1,209,660
2,375,000 MONTGOMERY COUNTY PA HIGHER EDUCATION & HEALTH AUTHORITY ABINGTON MEMORIAL
HOSPITAL SERIES A (HCFR, AMBAC INSURED) 4.80 06/01/2010 2,392,005
5,680,000 PENNSYLVANIA EDFA ALBERT EINSTEIN HEALTHCARE SERIES A (HCFR) 5.00 10/15/2011 5,827,907
4,075,000 PENNSYLVANIA EDFA ALBERT EINSTEIN HEALTHCARE SERIES A (HCFR) 5.00 10/15/2012 4,212,939
6,300,000 PENNSYLVANIA EDFA COLVER PROJECT SERIES F (OTHER REVENUE AMBAC INSURED) 4.50 12/01/2010 6,311,025
8,255,000 PENNSYLVANIA EDFA COLVER PROJECT SERIES F (OTHER REVENUE, AMBAC INSURED) 5.00 12/01/2012 8,270,189
9,150,000 PENNSYLVANIA EDFA COLVER PROJECT SERIES F (OTHER REVENUE, AMBAC INSURED) 5.00 12/01/2013 9,056,853
30,000,000 PENNSYLVANIA EDFA THOMAS JEFFERSON UNIVERSITY HOSPITAL SYSTEM
(PROPERTY TAX REVENUE)+/-ss 0.65 10/01/2037 28,125,000
2,500,000 PENNSYLVANIA EDFA WASTE MANAGEMENT INCORPORATED PROJECT (OTHER REVENUE)+/-ss 3.60 09/01/2013 2,504,525
4,750,000 PENNSYLVANIA EDFA WASTE MANAGEMENT INCORPORATED PROJECT SERIES A (IDR)+/-ss 2.25 11/01/2021 4,747,958
7,700,000 PENNSYLVANIA EDFA WASTE MANAGEMENT PROJECT (OTHER REVENUE)+/-ss 2.63 12/01/2033 7,686,987
2,750,000 PENNSYLVANIA STATE HIGHER EDUCATION ASSISTANCE AGENCY CAPITAL ACQUISITION
(OTHER REVENUE, NATLE-RE OF AGENCY INSURED) 6.13 12/15/2020 2,868,278
10,000,000 PENNSYLVANIA STATE HIGHER EDUCATION ASSISTANCE AGENCY CAPITAL ACQUISITION
(OTHER REVENUE, NATLE-RE OF AGENCY INSURED) 5.88 12/15/2025 10,406,500
680,000 PENNSYLVANIA STATE ST. JOSEPHS UNIVERSITY SERIES A
(COLLEGE & UNIVERSITY REVENUE, ALLIED IRISH BANK PLC)+/-ss 0.24 07/15/2036 680,000
51,900,000 PENNSYLVANIA STATE TURNPIKE COMMISSION SERIES B 2
(TOLL ROAD REVENUE, BANK OF AMERICA NA LOC)+/-ss 0.20 12/01/2038 51,900,000
14,500,000 PENNSYLVANIA STATE TURNPIKE COMMISSION SERIES C (TOLL ROAD REVENUE)+/-ss 0.87 12/01/2012 14,500,000
15,000,000 PENNSYLVANIA STATE TURNPIKE COMMISSION SERIES C (TOLL ROAD REVENUE)+/-ss 1.22 12/01/2013 15,000,000
1,455,000 PHILADELPHIA PA (AIRPORT REVENUE, NATL-RE FGIC INSURED) 5.38 06/15/2012 1,472,853
1,265,000 PHILADELPHIA PA 1998 7TH GENERAL ORDINANCE (UTILITIES REVENUE, AMBAC
INSURED) 4.00 10/01/2010 1,280,926
1,705,000 PHILADELPHIA PA 1998 8TH GENERAL ORDINANCE SERIES A (UTILITIES REVENUE) 5.00 08/01/2012 1,795,195
500,000 PHILADELPHIA PA 7TH SERIES 1998 GENERAL ORDINANCE
(UTILITIES REVENUE, AMBAC INSURED) 5.00 10/01/2013 525,760
88 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
PENNSYLVANIA (continued)
$ 805,000 PHILADELPHIA PA EIGHTEENTH SERIES (UTILITIES REVENUE, CIFG INSURED) 5.00% 08/01/2011 $ 834,656
1,305,000 PHILADELPHIA PA IDA COMMERCIAL DEVELOPMENT RED LION
(IDR, PNC BANK NA LOC)+/-ss 4.50 12/01/2016 1,308,524
3,170,000 PHILADELPHIA PA IDA SERIES A (LEASE REVENUE, NATL-RE INSURED) 5.00 10/01/2011 3,311,858
5,110,000 PHILADELPHIA PA IDA SERIES A 2 (OTHER REVENUE, CITIZENS BANK LOC)+/-ss 1.75 06/01/2038 5,110,000
3,800,000 PHILADELPHIA PA REDEVELOPMENT AUTHORITY NEIGHBORHOOD TRANSFORMATION SERIES
A (OTHER REVENUE, NATL-RE FGIC INSURED) 5.25 04/15/2011 3,929,466
1,380,000 SAYRE PA HCFA GUTHRIE HEALTH SERIES A (HCFR) 6.00 12/01/2010 1,419,896
1,850,000 SCHUYLKILL COUNTY IDA PINE GROVE LANDFILL INCORPORATED (IDR)+/- 6.25 10/01/2019 1,861,470
426,615,259
--------------
PUERTO RICO: 1.50%
1,000,000 PUERTO RICO COMMONWEALTH (INCOME TAX REVENUE, NATL-RE INSURED)+/-ss(a)(m)(n) 1.07 07/01/2011 975,000
1,895,000 PUERTO RICO COMMONWEALTH (OTHER REVENUE, FGIC INSURED) 5.25 07/01/2010 1,926,457
15,500,000 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY
(WATER REVENUE, NATL-RE INSURED)+/-ss(a)(m)(n) 0.86 07/01/2011 14,492,500
3,000,000 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY FLOATERS SERIES 2601
(WATER REVENUE, GUARANTEE AGREEMENT)+/-ss 0.24 07/01/2047 3,000,000
500,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY FLOATERS
SERIES DCL 019 (TOLL ROAD REVENUE, FSA INSURED, DEXIA CREDIT LOCAL LOC)+/-ss 0.40 01/01/2029 500,000
5,050,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES 2447
(OTHER REVENUE, ASSURED GUARANTY)+/-ss 0.26 07/01/2036 5,050,000
18,370,000 PUERTO RICO COMMONWEALTH INFRASTRUCTURE FINANCING AUTHORITY SERIES B
(OTHER REVENUE)+/-ss 0.90 10/01/2040 18,370,000
815,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES SS (ELECTRIC REVENUE) 5.00 07/01/2010 828,725
1,000,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES WW (ELECTRIC REVENUE) 5.00 07/01/2010 1,016,840
10,840,000 PUERTO RICO HFA VIVIENDA MODERNIZATION (HOUSING REVENUE) 4.75 10/01/2011 10,857,778
2,315,000 PUERTO RICO MUNICIPAL FINANCE AGENCY SERIES A
(PROPERTY TAX REVENUE, AGM INSURED) 5.63 08/01/2010 2,346,646
49,900,000 PUERTO RICO SALES TAX FINANCING CORPORATION FIRST SUBSERIES A
(SALES TAX REVENUE)+/-ss 5.00 08/01/2039 52,318,154
990,000 UNIVERSITY OF PUERTO RICO SERIES Q (COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2010 999,870
112,681,970
--------------
RHODE ISLAND: 0.36%
25,025,000 NARRAGANSETT BAY COMMISSION SERIES A
(SEWER REVENUE, RBS CITIZENS BANK LOC)+/-ss 0.33 09/01/2034 25,025,000
655,000 PROVIDENCE RI PUBLIC BUILDING AUTHORITY SCHOOL & PUBLIC FACILITY PROJECT
SERIES A
(LEASE REVENUE, AMBAC INSURED) 5.38 12/15/2011 669,312
1,420,000 RHODE ISLAND HOUSING & MORTGAGE FINANCE CORPORATION HOMEOWN OPPORTUNITY
SERIES 50 A (HOUSING REVENUE) 3.55 10/01/2011 1,470,765
27,165,077
--------------
SOUTH CAROLINA: 1.57%
3,580,000 ANDERSON COUNTY SC FEDERAL PAPER BOARD COMPANY (IDR)+/-ss 4.75 08/01/2010 3,583,043
7,000,000 GREENVILLE HOSPITAL SYSTEM SC SERIES B (HCFR, SUNTRUST BANK LOC)+/-ss 0.30 05/01/2033 7,000,000
1,300,000 ORANGEBURG SC JOINT GOVERNMENTAL ACTION AUTHORITY
(SALES TAX REVENUE, NATL-RE INSURED) 5.00 04/01/2010 1,310,010
2,250,000 ORANGEBURG SC JOINT GOVERNMENTAL ACTION AUTHORITY
(SALES TAX REVENUE, NATL-RE INSURED) 5.00 10/01/2010 2,301,840
2,010,000 ORANGEBURG SC JOINT GOVERNMENTAL ACTION AUTHORITY
(SALES TAX REVENUE, NATL-RE INSURED) 5.00 04/01/2011 2,069,275
4,075,000 ORANGEBURG SC JOINT GOVERNMENTAL ACTION AUTHORITY
(SALES TAX REVENUE, NATL-RE INSURED) 5.00 10/01/2011 4,234,333
Wells Fargo Advantage Municipal Income Funds 89
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
SOUTH CAROLINA (continued)
$ 330,000 ORANGEBURG SC SCHOOL DISTRICT # 005 SERIES B
(LEASE REVENUE, AMBAC INSURED) 4.10% 03/01/2010 $ 331,841
16,070,000 PIEDMONT SC MUNICIPAL POWER AGENCY CAPITAL APPRECIATION 2004
UNREFUNDED BALANCE (ELECTRIC, POWER & LIGHT REVENUE)## 5.37 01/01/2013 13,864,714
1,000,000 SOUTH CAROLINA JOBS ECONOMIC DEVELOPMENT AUTHORITY GEORGETOWN
MEMORIAL HOSPITAL (HCFR, AMBAC INSURED) 5.50 11/01/2012 1,011,630
40,800,000 SOUTH CAROLINA JOBS ECONOMIC DEVELOPMENT
AUTHORITY PALMETTO HEALTH (HCFR)+/-ss 0.99 08/01/2039 38,270,400
620,000 SOUTH CAROLINA STATE HOUSING FINANCE & DEVELOPMENT AUTHORITY SERIES A
(HOUSING REVENUE, AMBAC INSURED) 3.60 07/01/2033 606,546
40,490,000 TOBACCO SETTLEMENT REVENUE MANAGEMENT AUTHORITY SC
(TOBACCO SETTLEMENT FUNDED) 5.00 06/01/2018 40,555,189
3,000,000 YORK COUNTY SC PCR SERIES B 2 (SEWER REVENUE)+/-ss 2.25 09/15/2024 3,002,100
118,140,921
--------------
SOUTH DAKOTA: 0.03%
1,920,000 SOUTH DAKOTA HOUSING DEVELOPMENT AUTHORITY HOMEOWNERSHIP
MORTGAGE SERIES A (HOUSING REVENUE) 3.85 05/01/2011 1,979,328
--------------
TENNESSEE: 4.84%
1,075,000 CHATTANOOGA HAMILTON COUNTY TN ERLANGER HEALTH (HCFR, AGM INSURED) 5.00 10/01/2012 1,155,604
2,220,000 CHATTANOOGA HAMILTON COUNTY TN ERLANGER HEALTH (HCFR, AGM INSURED) 5.00 10/01/2012 2,386,456
5,000,000 CHATTANOOGA TN HEFA MCCALLIE SCHOOL PROJECT
(PRIVATE SCHOOLS REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 12/01/2023 5,000,000
9,000,000 CLAIBORNE COUNTY TN LINCOLN MEMORIAL UNIVERSITY PROJECT
(COLLEGE & UNIVERSITY REVENUE, AMSOUTH BANK LOC)+/-ss 0.95 07/01/2036 9,000,000
4,000,000 CLARKSVILLE TN NATURAL GAS ACQUISITION CORPORATION (UTILITIES REVENUE) 5.00 12/15/2010 4,110,040
2,685,000 CLARKSVILLE TN NATURAL GAS ACQUISITION CORPORATION (UTILITIES REVENUE) 5.00 12/15/2012 2,827,735
20,570,000 ELIZABETHTON TN HEFA SERIES B (HCFR, NATL-RE INSURED) 7.75 07/01/2029 23,403,929
1,685,000 FRANKLIN COUNTY TN HEFA ANDREWS SEWANEE SCHOOL PROJECT
(PRIVATE SCHOOLS REVENUE, AMSOUTH BANK)+/-ss 0.95 09/01/2019 1,685,000
2,190,000 JACKSON TN EDUCATIONAL FACILITIES TRINITY CHRISTIAN
(PRIVATE SCHOOLS REVENUE, AMSOUTH BANK LOC)+/-ss 0.95 03/01/2022 2,190,000
6,000,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES BOARD
1ST MORTGAGE MOUNTAIN STATES (HCFR) 7.50 07/01/2033 6,792,360
8,000,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES BOARD
1ST MORTGAGE MOUNTAIN STATES (HCFR, NATL-RE INSURED) 7.50 07/01/2025 9,056,480
43,255,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES BOARD
MOUNTAIN STATES HEALTH ALLIANCE A (HCFR, REGIONS BANK LOC)+/-ss 0.90 07/01/2038 43,255,000
41,922,000 JOHNSON CITY TN HEALTH & EDUCATIONAL FACILITIES BOARD
MOUNTAIN STATES HEALTHALLIANCE A (HCFR, REGIONS BANK LOC)+/-ss 0.90 07/01/2038 41,922,000
6,750,000 KNOX COUNTY TN HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD
COOKEVILLE REGIONAL PROJECT SERIES A 2 (HCFR, REGIONS BANK LOC)+/-ss 1.75 10/01/2026 6,750,000
1,000,000 KNOX COUNTY TN HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD
FORT SANDERS ALLIANCE (HCFR, NATL-RE INSURED) 7.25 01/01/2010 1,000,000
10,630,000 KNOX COUNTY TN HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD
FORT SANDERS ALLIANCE (HCFR, NATL-RE INSURED) 5.75 01/01/2012 11,237,930
10,310,000 MEMPHIS SHELBY COUNTY TN AIRPORT AUTHORITY FLOATERS
SERIES DCL 036 (AIRPORT REVENUE, FSA INSURED, DEXIA CREDIT LOCAL LOC)+/- 0.30 03/01/2015 10,310,000
16,605,000 MEMPHIS TN HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD
LANE COLLEGE PROJECT (COLLEGE & UNIVERSITY REVENUE, REGIONS BANK LOC)+/-ss 0.95 10/01/2033 16,605,000
3,575,000 METROPOLITAN GOVERNMENT NASHVILLE & DAVIDSON COUNTY
TN DONELSON CHRISTIAN ACADEMY (PRIVATE SCHOOLS REVENUE, REGIONS BANK
LOC)+/-ss 0.95 03/01/2023 3,575,000
4,865,000 METROPOLITAN GOVERNMENT NASHVILLE & DAVIDSON COUNTY TN HEALTH & EDUCATIONAL
FACILITIES BOARD MEHARRY MEDICAL COLLEGE (COLLEGE & UNIVERSITY REVENUE,
FIFTH THIRD BANK LOC)+/-ss 0.55 12/01/2024 4,865,000
90 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
TENNESSEE (continued)
$ 10,000,000 SEVIER COUNTY TN PUBLIC BUILDING AUTHORITY CLAIBORNE
(TAX REVENUE, COUNTY GUARANTEED) 4.00% 12/01/2010 $ 10,209,800
29,900,000 SEVIER COUNTY TN PUBLIC BUILDING AUTHORITY LOCAL GOVERNMENT
IMPROVEMENT SERIES K 1 (OTHER REVENUE)+/-ss 0.48 06/01/2034 29,900,000
4,500,000 SEVIER COUNTY TN PUBLIC BUILDING AUTHORITY PUBLIC PROJECTS
CONSTRUCTION NOTES TAUD SERIES A 5 (UTILITIES REVENUE)+/-ss 0.85 04/01/2010 4,500,720
12,500,000 SEVIER COUNTY TN PUBLIC BUILDING AUTHORITY PUBLIC PROJECTS
CONTRACT NOTES SERIES A 6 (OTHER REVENUE)+/-ss 0.85 04/01/2010 12,502,000
4,900,000 SHELBY COUNTY TN HEALTH & EDUCATIONAL FACILITIES BOARD SOUTHERN COLLEGE OF
OPTOMETRY PROJECT (COLLEGE & UNIVERSITY REVENUE, ALLIED IRISH BANKS PLC
LOC)+/-ss 0.30 06/01/2026 4,900,000
2,050,000 SHELBY COUNTY TN HEALTH & EDUCATIONAL FACILITIES BOARD ST. PETER VILLAGE
PROJECT
(HCFR, ALLIED IRISH BANKS PLC LOC)+/-ss 0.35 11/01/2022 2,050,000
3,200,000 SHELBY COUNTY TN HEALTH & EDUCATIONAL FACILITIES BOARD YOUTH VILLAGE PROJECT
(OTHER REVENUE, ALLIED IRISH BANKS PLC LOC)+/-ss 0.30 05/01/2016 3,200,000
14,500,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2010 14,799,860
26,335,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2011 27,756,563
4,915,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 02/01/2012 5,224,104
7,180,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2012 7,520,619
5,250,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 02/01/2013 5,588,310
2,670,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2013 2,818,799
1,965,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 02/01/2014 2,095,378
8,380,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (NATURAL GAS REVENUE) 5.00 09/01/2014 8,813,246
8,785,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES C (NATURAL GAS REVENUE) 5.00 02/01/2011 9,131,305
6,000,000 WILSON COUNTY TN KNIGHT LEASING COMPANY PROJECT (IDR, REGIONS BANK LOC)+/-ss 1.05 05/01/2020 6,000,000
364,138,238
--------------
TEXAS: 8.00%
6,250,000 ALEDO TX INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING
(PROPERTY TAX REVENUE, PSF GUARANTEED)+/-ss 1.90 08/01/2035 6,267,500
10,000,000 ARLINGTON TX SPECIAL OBLIGATION DALLAS COWBOYS SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.00 08/15/2034 10,022,600
3,000,000 BRAZOS RIVER TX HARBOR NAVIGATION DISTRICT THE DOW CHEMICAL
COMPANY (OTHER REVENUE) 5.25 10/01/2011 3,028,140
500,000 BRAZOS RIVER TX HARBOR NAVIGATION DISTRICT THE DOW CHEMICAL
COMPANY SERIES B 1 (OTHER REVENUE)+/-ss 5.50 05/15/2033 509,075
10,000,000 BRAZOS RIVER TX HARBOR NAVIGATION DISTRICT THE DOW CHEMICAL
COMPANY SERIES B 3 (OTHER REVENUE)+/-ss 5.50 05/15/2033 10,195,600
1,000,000 GARZA COUNTY TX PUBLIC FACILITY CORPORATION PROJECT (LEASE REVENUE) 5.00 10/01/2011 1,043,030
3,750,000 HARRIS COUNTY TX CULTURAL EDUCATION FACILITIES FINANCE CORPORATION
METHODIST HOSPITAL SYSTEM SERIES B 1 (HCFR)+/-ss 5.00 12/01/2028 4,044,150
2,400,000 HARRIS COUNTY TX HEALTH FACILITIES CHIRISTUS HEALTH SERIES A 5
(HCFR, AGM INSURED)+/-ss 0.80 07/01/2036 2,400,000
2,355,000 HARRIS COUNTY TX HEALTH FACILITIES DEVELOPMENT CORPORATION
MEMORIAL HOSPITAL SYSTEM PROJECT SERIES A (HCFR, NATL-RE INSURED) 6.00 06/01/2010 2,391,455
1,255,000 HIDALGO COUNTY TX HEALTH SERVICES CORPORATION
MISSION HOSPITAL INCORPORATED PROJECT (HCFR) 5.00 08/15/2011 1,278,230
11,000,000 HOUSTON TX FIRST LIEN SERIES C (UTILITIES REVENUE, AMBAC INSURED)+/-ss 5.00 05/15/2034 11,486,860
3,625,000 HOUSTON TX FIRST LIEN SERIES C1 (UTILITIES REVENUE, AMBAC INSURED)+/-ss 5.00 05/15/2034 3,785,443
10,000,000 HOUSTON TX GO 0.35 01/20/2010 10,000,000
3,000,000 HOUSTON TX SUB LIEN SERIES A (AIRPORT REVENUE, AGM INSURED) 5.75 07/01/2011 3,064,650
2,200,000 HOUSTON TX SUB LIEN SERIES B (AIRPORT REVENUE, NATL-RE FGIC INSURED) 5.25 07/01/2011 2,206,402
7,825,000 HOUSTON TX WATER CONVEYANCE SUBCONTRACT COP SERIES J
(LEASE REVENUE, AMBAC INSURED) 6.25 12/15/2012 8,588,094
9,000,000 LUBBOCK TX HEALTH FACILITIES DEVELOPMENT CORPORATION
ST. JOSEPH HEALTH SYSTEMS SERIES A (HCFR)+/-ss 3.05 07/01/2030 9,118,350
4,500,000 MATAGORDA COUNTY TX PCR AEP TEXAS CENTER PROJECT NAVIGATION DISTRICT # 1
(IDR)+/-ss 5.13 06/01/2030 4,682,340
Wells Fargo Advantage Municipal Income Funds 91
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
TEXAS (continued)
$ 4,500,000 MISSION TX ECONOMIC DEVELOPMENT CORPORATION WASTE MANAGEMENT
INCORPORATED PROJECT (RESOURCE RECOVERY REVENUE)+/-ss 2.00% 12/01/2018 $ 4,499,955
4,230,000 NORTH CENTRAL TEXAS HEALTH FACILITY DEVELOPMENT CORPORATION
CHILDREN'S MEDICAL CENTER PROJECT (HCFR, NATL-RE INSURED) 5.75 08/15/2013 4,240,406
35,315,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER PUTTABLE SERIES L2 (TOLL ROAD
REVENUE)+/-ss 6.00 01/01/2038 39,060,156
60,500,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER SERIES E 1 (TOLL ROAD
REVENUE)+/-ss 5.00 01/01/2038 60,500,000
10,415,000 NORTH TEXAS TOLLWAY AUTHORITY FIRST TIER SERIES G (TOLL ROAD REVENUE)+/-ss 5.00 01/01/2038 10,415,000
500,000 NORTHEAST HOSPITAL AUTHORITY TX NORTHEAST MEDICAL CENTER (HCFR, AGM
INSURED) 6.25 05/15/2011 531,285
9,000,000 NORTHSIDE TEXAS INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING
(PROPERTY TAX REVENUE)+/-ss 2.10 06/01/2039 9,072,450
3,200,000 PORT OF PORT ARTHUR TX NAVIGATION DISTRICT FINA OIL &
CHEMICAL COMPANY PROJECT (IDR)+/-ss 0.32 05/01/2033 3,200,000
2,500,000 SA ENERGY ACQUISITION PUBLIC FACILITY CORPORATION
TEXAS GAS SUPPLY REVENUE (UTILITIES REVENUE) 5.00 08/01/2010 2,554,325
13,425,000 SA ENERGY ACQUISITION PUBLIC FACILITY CORPORATION
TEXAS GAS SUPPLY REVENUE (UTILITIES REVENUE) 5.00 08/01/2011 14,156,260
6,895,000 SHERMAN TX INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING
(PROPERTY TAX REVENUE, PSF GUARANTEED)+/-ss 1.90 08/01/2036 6,914,237
18,800,000 TARRANT COUNTY TX CULTURAL EDUCATIONAL FACILITIES FINANCE CORPORATION
SCOTT WHITE MEMORIAL HOSPITAL SERIES C (HCFR, COMPASS BANK LOC)+/-ss 0.35 08/15/2046 18,800,000
28,550,000 TARRANT COUNTY TX CULTURAL EDUCATIONAL FACILITIES FINANCE CORPORATION
TEXAS HEALTH RESOURCES SERIES F (HCFR)+/-ss 0.38 11/15/2033 28,550,000
84,485,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION I SENIOR LIEN SERIES D
(NATURAL GAS REVENUE) 5.63 12/15/2017 90,464,848
4,055,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION I SENIOR LIEN SERIES A
(NATURAL GAS REVENUE) 5.00 12/15/2011 4,235,853
80,150,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II BMA INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.71 09/15/2017 74,940,250
340,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II LIBOR INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.57 09/15/2010 331,670
59,060,000 TEXAS MUNICIPAL GAS ACQUISITION & SUPPLY CORPORATION II LIBOR INDEX RATE
(NATURAL GAS REVENUE)+/-ss 0.87 09/15/2017 54,645,265
4,985,000 TEXAS MUNICIPAL POWER AGENCY UNREFUNDED BALANCE
(ELECTRIC, POWER & LIGHT REVENUE, AMBAC INSURED)## 1.84 09/01/2011 4,818,850
11,000,000 TEXAS STATE LINKED SAVERS & RIBS (PROPERTY TAX REVENUE) 6.20 09/30/2011 11,524,810
55,835,000 TEXAS STATE MOBILITY FUND SERIES B (PROPERTY TAX REVENUE)+/-ss 1.05 04/01/2030 55,835,000
6,400,000 TITUS FRESH WATER SUPPLY DISTRICT TX FRESH WATER SUPPLY DISTRICT # 1
POWER COMPANY (ELECTRIC REVENUE) 4.50 07/01/2011 6,601,664
1,260,000 TOMBALL TX HOSPITAL (HCFR) 5.00 07/01/2010 1,270,849
601,275,052
--------------
UTAH: 1.20%
2,550,000 CARBON COUNTY UT LAIDLAW INCORPORATED ECDD PROJECT SERIES A (IDR) 7.50 02/01/2010 2,557,650
13,780,000 PUTTABLE FLOATING OPTION TAX-EXEMPT RECEIPTS SERIES 4321 (NATL-RE
INSURED)+/-ss 0.50 04/01/2029 13,780,000
35,000,000 UTAH STATE BOARD OF REGENTS SERIES A (OTHER REVENUE, DEPFA BANK PLC
LOC)+/-ss 1.70 11/01/2023 35,000,000
140,000 UTAH STATE HFA SFMR SERIES E 2 CLASS I (SFMR, FHA INSURED) 6.00 01/01/2031 140,703
6,475,000 UTAH STATE HOUSING CORPORATION SFMR SERIES A 1 CLASS 1 (SFMR)+/-ss 2.62 07/01/2037 6,475,000
11,935,000 UTAH STATE HOUSING CORPORATION SFMR SERIES E CLASS 1 (SFMR)+/-ss 2.62 01/01/2037 11,935,000
6,585,000 UTAH STATE HOUSING CORPORATION SFMR SERIES F 1 CLASS 1 (SFMR)+/-ss 2.62 01/01/2037 6,585,000
13,850,000 UTAH STATE HOUSING CORPORATION SFMR SERIES G (SFMR)+/-ss 2.62 01/01/2037 13,850,000
90,323,353
--------------
VERMONT: 0.15%
11,400,000 VERMONT STATE STUDENT ASSISTANCE CORPORATION SENIOR LIEN SERIES B 1
(STUDENT LOAD REVENUE, GUARANTEED STUDENT LOANS INSURED, BANK OF NEW YORK
MELLON LOC)+/-ss 0.29 12/15/2039 11,400,000
--------------
92 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
VIRGIN ISLANDS: 0.17%
$ 2,000,000 VIRGIN ISLANDS PFA SENIOR LIEN SERIES B (OTHER REVENUE) 5.00% 10/01/2011 $ 2,083,100
4,500,000 VIRGIN ISLANDS PFA SENIOR LIEN SERIES B (OTHER REVENUE) 5.00 10/01/2012 4,751,145
1,000,000 VIRGIN ISLANDS PFA SUB LIEN SERIES C (OTHER REVENUE) 5.00 10/01/2010 1,020,400
2,000,000 VIRGIN ISLANDS PFA SUB LIEN SERIES C (OTHER REVENUE) 5.00 10/01/2011 2,083,100
3,000,000 VIRGIN ISLANDS PFA SUB LIEN SERIES C (OTHER REVENUE) 5.00 10/01/2012 3,167,430
13,105,175
--------------
VIRGINIA: 2.41%
10,000,000 ALBEMARLE COUNTY VA IDR JEFFERSON SCHOLARS FOUNDATION PROJECT
(OTHER REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 10/01/2037 10,000,000
15,025,000 ALEXANDRIA IDA AMERICAN SOCIETY CLINICAL SERIES B
(OTHER REVENUE, SUNTRUST BANK LOC)+/-ss 0.30 10/01/2043 15,025,000
1,160,000 AMELIA COUNTY VA IDA WASTE MANAGEMENT PROJECT (OTHER REVENUE)+/-ss 4.80 04/01/2027 1,165,081
8,000,000 BOTETOURT COUNTY VA IDA ALTEC INDUSTRIES INCORPORATED
(IDR, AMSOUTH BANK LOC)+/-ss 0.75 01/01/2027 8,000,000
4,000,000 COVINGTON VA BOND ANTICIPATION NOTES (PROPERTY TAX REVENUE) 3.38 12/01/2012 4,120,120
43,860,000 FAIRFAX COUNTY VA IDA INNOVATIONAL HEALTH SYSTEM PROJECT SERIES C 2
(HOSPITAL REVENUE)+/-ss 0.27 05/15/2026 43,860,000
4,275,000 HOPEWELL VA (SEWER REVENUE) 4.00 11/15/2012 4,469,513
3,965,000 LOUDOUN COUNTY VA IDA HILL SCHOOL PROJECT (IDR, SUNTRUST BANK LOC)+/-ss 0.35 03/01/2032 3,965,000
28,000,000 LOUDOUN COUNTY VA IDA HOWARD HUGHES MEDICAL INSTITUTE SERIES E (IDR)+/-ss 0.17 02/15/2038 28,000,000
1,050,000 LOUISA VA IDA VIRGINIA ELECTRIC & POWER COMPANY PROJECT SERIES A (IDR)+/-ss 4.25 09/01/2030 1,053,843
5,000,000 PENINSULA PORTS AUTHORITY DOMINION TERM ASSOCIATION PROJECT (OTHER
REVENUE)+/-ss 5.00 10/01/2033 5,109,750
1,095,000 RICHMOND VA IDR GOVERNMENT FACILITIES REVENUE BONDS
(LEASE REVENUE, AMBAC INSURED) 5.00 07/15/2011 1,150,933
17,655,000 RUSSELL COUNTY VA IDA MOUNTAIN STATES HEALTH ALLIANCE SERIES B
(HCFR, REGIONS BANK LOC)+/-ss 0.90 07/01/2038 17,655,000
17,564,000 SMYTH COUNTY VA IDA MOUNTAIN STATES HEALTH ALLIANCE SERIES C
(HCFR, REGIONS BANK LOC)+/-ss 0.90 07/01/2032 17,564,000
5,000,000 SPOTSYLVANIA COUNTY VA EDA CIVIL WAR PRESERVATION PROJECT
(OTHER REVENUE, SUNTRUST BANK LOC)+/-ss 0.35 04/01/2027 5,000,000
3,700,000 VIRGINIA BEACH VA RESIDENTIAL RENTAL SILVER HILL (MFHR, SUNTRUST BANK
LOC)+/-ss 0.50 05/01/2025 3,700,000
1,355,000 VIRGINIA HOUSING DEVELOPMENT AUTHORITY COMMONWEALTH MORTGAGE SERIES D
(HOUSING REVENUE, GO OF AUTHORITY) 5.13 10/01/2010 1,382,493
10,000,000 VIRGINIA HOUSING DEVELOPMENT AUTHORITY COMMONWEALTH MORTGAGE SERIES D
SUBSERIES D 2 (HOUSING REVENUE, GO OF AUTHORITY) 4.05 07/01/2011 10,187,500
181,408,233
--------------
WASHINGTON: 0.44%
3,885,000 GREATER WENATCHEE REGIONAL EVENTS CENTER LIMITED SALES TAX BOND
ANTICIPATION NOTES (SALES TAX REVENUE)T (SALES TAX REVENUE, GO OF DISTRICT) 5.00 12/01/2011 3,993,081
5,825,000 PORT OF SEATTLE WA SERIES B (AIRPORT REVENUE, AMBAC INSURED) 5.25 12/01/2014 5,862,804
1,000,000 PORT OF SEATTLE WA SERIES B (AIRPORT REVENUE, NATL-RE FGIC INSURED)+/-ss 5.50 09/01/2011 1,060,970
1,500,000 REGIONAL EVENTS CENTER SPECIAL TAX BOND ANTICIPATION NOTES SERIES A
(OTHER REVENUE, GO OF DISTRICT) 4.75 12/01/2011 1,521,150
560,000 REGIONAL EVENTS CENTER SPECIAL TAX BOND ANTICIPATION NOTES SERIES A
(OTHER REVENUE, GO OF DISTRICT) 5.25 12/01/2011 571,430
10,000,000 WASHINGTON STATE COP CONVENTION & TRADE CENTER
(LEASE REVENUE, NATL-RE INSURED) 5.25 07/01/2014 10,032,100
440,000 WASHINGTON STATE HEALTH CARE FACILITIES AUTHORITY CENTRAL
WASHINGTON HEALTH SERVICES (HCFR) 5.00 07/01/2010 444,378
570,000 WASHINGTON STATE HEALTH CARE FACILITIES AUTHORITY CENTRAL
WASHINGTON HEALTH SERVICES (HCFR) 5.00 07/01/2011 585,248
560,000 WASHINGTON STATE HEALTH CARE FACILITIES AUTHORITY CENTRAL
WASHINGTON HEALTH SERVICES (HCFR) 5.00 07/01/2012 581,302
Wells Fargo Advantage Municipal Income Funds 93
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
WASHINGTON (continued)
$ 4,625,000 WASHINGTON STATE HEALTH CARE FACILITIES AUTHORITY PARS PROVIDENCE HEALTH
SYSTEM SERIES B (HCFR NATL-RE INSURED)+/-ss(a) 0.15% 10/01/2010 $ 4,486,250
2,070,000 WASHINGTON STATE HEALTH CARE FACILITIES GROUP HEALTH COOPERATIVE PUGET
SOUND (HCFR, NATL-RE INSURED) 6.75 12/01/2011 2,072,877
2,100,000 WASHINGTON STATE PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECT # 1ENERGY
NORTHWEST (ELECTRIC REVENUE, AGM INSURED)+/-ss(a) 0.95 07/01/2011 1,988,961
33,200,551
--------------
WEST VIRGINIA: 0.77%
5,015,000 WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY APPALACHIAN POWER COMPANY
AMOS PROJECT SERIES E (OTHER REVENUE)+/-ss 7.13 12/01/2038 5,117,757
52,790,000 WEST VIRGINIA STATE HOSPITAL FINANCE AUTHORITY PALLOTTINE HEALTH SERIES A 1
(HCFR, FIFTH THIRD BANK LOC)+/-ss 0.63 10/01/2033 52,790,000
57,907,757
--------------
WISCONSIN: 1.73%
235,000 DELAFIELD WI CDA UNIVERSITY LAKE SCHOOL PROJECT (OTHER REVENUE, FIRSTAR
BANK NA LOC)+/-ss 0.22 03/01/2035 235,000
2,905,000 GREEN BAY WI AREA PUBLIC SCHOOL DISTRICT ANTICIPATION NOTES (OTHER REVENUE) 2.00 04/28/2010 2,910,316
300,000 HALES CORNERS WI CDA LUTHERAN CHURCH PROJECT (IDR, PNC BANK NA LOC)+/-ss 0.37 08/01/2037 300,000
1,000,000 KRONENWETTER WI RDA (OTHER REVENUE) 4.50 05/01/2011 1,010,350
20,520,000 MARSHFIELD WI BOND ANTICIPATION NOTES SERIES C (ELECTRIC REVENUE) 4.00 12/01/2010 20,864,326
780,000 MONONA SEWER SYSTEMS REVENUE WISCONSIN BOND ANTICIPATION NOTES (SEWER
REVENUE) 4.50 05/01/2011 787,426
29,430,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY AMT SERIES A
(HOUSING REVENUE, GO OF AUTHORITY)+/-ss 0.55 03/01/2035 29,430,000
1,500,000 WISCONSIN STATE HEFA AURORA HEALTH CARE INCORPORATED (HCFR, NATL-RE
INSURED) 5.00 08/15/2010 1,503,345
10,600,000 WISCONSIN STATE HEFA AURORA HEALTH CARE OBLIGATED (HCFR, NATL-RE INSURED) 5.25 08/15/2012 10,615,760
1,850,000 WISCONSIN STATE HEFA EDGEWOOD COLLEGE (OTHER REVENUE, US BANK NA LOC)+/-ss 0.25 10/01/2031 1,850,000
3,350,000 WISCONSIN STATE HEFA GROUP HEALTH COOPERATIVE (HCFR, JOHNSON BANK LOC)+/-ss 2.57 07/01/2024 3,350,000
11,645,000 WISCONSIN STATE HEFA LAKELAND COLLEGE (HCFR, MARSHALL & ILSLEY BANK
LOC)+/-ss 2.47 03/01/2028 11,645,000
4,700,000 WISCONSIN STATE HEFA LUTHERAN CHILD & FAMILY SERVICE INCORPORATED
(HCFR, MARSHALL & ILSLEY BANK LOC)+/-ss 2.57 07/01/2038 4,700,000
23,165,000 WISCONSIN STATE HEFA RIPON COLLEGE (COLLEGE & UNIVERSITY REVENUE,
MARSHALL & I LLSLEY BANK LOC)+/-ss 2.47 06/01/2036 23,165,000
4,658,000 WISCONSIN STATE HEFA SINAI SAMARITAN SERIES A
(HCFR, MARSHALL & ILSLEY BANK LOC)+/-ss 2.47 09/01/2019 4,658,000
6,285,000 WISCONSIN STATE HEFA UNITED LUTHERAN PROGRAM FOR THE AGING
(HCFR, MARSHALL & ILSLEY BANK LOC)+/-ss 2.47 04/01/2022 6,285,000
6,640,000 WISCONSIN STATE HEFAR FRANCISCAN SISTERS SERIES B
(HCFR, MARSHALL & ILSLEY BANK LOC)+/-ss 2.53 09/01/2033 6,640,000
129,949,523
--------------
WYOMING: 0.09%
6,925,000 LINCOLN COUNTY WY PCR PACIFICORP (OTHER REVENUE)+/-ss 3.40 01/01/2016 6,949,584
--------------
TOTAL MUNICIPAL BONDS & NOTES (COST $7,457,870,566) 7,493,340,879
--------------
94 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
SHARES SECURITY NAME YIELD VALUE
- ------------ ------------------------------------------------------------------ -------- --------------
SHORT-TERM INVESTMENTS: 0.28%
MUTUAL FUNDS: 0.28%
20,772,132 WELLS FARGO ADVANTAGE NATIONAL TAX-FREE MONEY MARKET TRUST~++(u) 0.10% $ 20,772,132
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $20,772,132) 20,772,132
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $7,478,642,698)* 99.93% 7,514,113,011
OTHER ASSETS AND LIABILITIES, NET 0.07 5,288,495
------ --------------
TOTAL NET ASSETS 100.00% $7,519,401,506
------ --------------
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
## Zero coupon security. Interest rate presented is yield to maturity.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
~ The Fund invests cash balances that it retains for liquidity purposes in a
Wells Fargo Advantage Money Market Fund. The Wells Fargo Advantage Money
Market Fund does not pay an investment advisory fee.
+++ Short-term security of an affiliate of the Fund with a cost of $20,772,133.
(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $7,480,442,474 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $40,011,788
Gross unrealized depreciation (6,341,251)
-----------
Net unrealized appreciation $33,670,537
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 95
Portfolio of Investments--December 31, 2009 (Unaudited)
WISCONSIN TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
MUNICIPAL BONDS & NOTES: 99.61%
ALABAMA: 0.65%
$ 740,000 BIRMINGHAM AL NEW PUBLIC HOUSING AUTHORITY (HOUSING REVENUE, GUARANTEE
AGREEMENT) 5.00% 06/01/2011 $ 781,854
--------------
GUAM: 2.61%
500,000 GUAM GOVERNMENT LIMITED OBLIGATION SECTION 30 SERIES A (OTHER REVENUE) 5.00 12/01/2013 527,605
1,000,000 GUAM GOVERNMENT LIMITED SERIES A (GO - STATES, TERRITORIES, AGM INSURED) 5.50 12/01/2010 1,035,600
1,000,000 GUAM GOVERNMENT SECTION 30 SERIES A (OTHER REVENUE) 5.50 12/01/2019 1,035,270
500,000 GUAM INTERNATIONAL AIRPORT AUTHORITY SERIES C (AIRPORT REVENUE, NATL-RE
INSURED) 5.38 10/01/2017 514,420
5,000 GUAM POWER AUTHORITY SERIES A (ELECTRIC REVENUE, AMBAC INSURED) 5.25 10/01/2013 5,005
3,117,900
--------------
PUERTO RICO: 38.39%
500,000 UNREFUNDED BALANCE CAPITAL FUNDING PROGRAM (HOUSING REVENUE,
HUD LOAN INSURED) 5.00 12/01/2015 527,775
335,000 UNREFUNDED BALANCE CAPITAL FUNDING PROGRAM (HOUSING REVENUE,
HUD LOAN INSURED) 5.00 12/01/2019 342,025
260,000 UNREFUNDED BALANCE CAPITAL FUNDING PROGRAM (HOUSING REVENUE,
HUD LOAN INSURED) 5.00 12/01/2020 264,472
250,000 CHILDREN'S TRUST FUND PUERTO RICO TOBACCO SETTLEMENT ASSET-BACKED
(EXCISE TAX REVENUE) 4.13 05/15/2011 251,800
250,000 CHILDREN'S TRUST FUND PUERTO RICO TOBACCO SETTLEMENT ASSET-BACKED
(EXCISE TAX REVENUE) 5.00 05/15/2011 254,703
25,000 PUERTO RICO AQUEDUCT & SEWER AUTHORITY (WATER REVENUE, NATL-RE INSURED) 6.25 07/01/2012 28,339
1,000,000 PUERTO RICO COMMONWEALTH (INCOME TAX REVENUE, NATL-RE INSURED)+/-ss(a) 1.07 07/01/2011 975,000
2,000,000 PUERTO RICO COMMONWEALTH AQUEDUCT & SEWER AUTHORITY (WATER REVENUE,
NATL-RE INSURED)+/-ss(a) 0.86 07/01/2011 1,870,000
1,500,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY
(FUEL SALES TAX REVENUE, NATL-RE INSURED) 5.50 07/01/2013 1,602,915
975,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY FLOATERS
SERIES DCL 008 (TOLL ROAD REVENUE, FSA INSURED, DEXIA CREDIT LOCAL
LOC)+/-ss 0.40 07/01/2030 975,000
410,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY FLOATERS
SERIES DCL 019 (TOLL ROAD REVENUE, FSA INSURED, DEXIA CREDIT LOCAL
LOC)+/-ss 0.40 01/01/2029 410,000
1,000,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY REFUNDING
SERIES L (TRANSPORTATION REVENUE, CIFG INSURED) 5.25 07/01/2019 1,022,900
1,000,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES 2148
(TOLL ROAD REVENUE, CIFG INSURED)+/-ss 0.60 07/01/2041 1,000,000
100,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES 2447
(OTHER REVENUE, ASSURED GUARANTY)+/-ss 0.26 07/01/2036 100,000
900,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES 246
(TOLL ROAD REVENUE, FSA INSURED)+/-ss++ 1.05 07/01/2027 900,000
165,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES A
(FUEL SALES TAX REVENUE, AMBAC INSURED) 5.50 07/01/2013 175,397
550,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES E
(TOL ROAD REVENUE, AGM INSURED) 5.50 07/01/2012 590,579
300,000 PUERTO RICO COMMONWEALTH HIGHWAY & TRANSPORTATION AUTHORITY SERIES W
(FUEL SALES TAX REVENUE, AGM INSURED) 5.50 07/01/2013 318,351
11,920,000 PUERTO RICO COMMONWEALTH INFRASTRUCTURE FINANCING AUTHORITY SERIES B
(OTHER REVENUE)+/-ss 0.89 10/01/2040 11,920,000
100,000 PUERTO RICO COMMONWEALTH PUBLIC IMPROVEMENT
(OTHER REVENUE, AGM INSURED) 5.25 07/01/2020 106,653
1,250,000 PUERTO RICO COMMONWEALTH PUBLIC IMPROVEMENT SERIES A
(PROPERTY TAX REVENUE, ASSURED GUARANTY)+/-ss 0.28 07/01/2020 898,188
350,000 PUERTO RICO COMMONWEALTH REFUNDING (OTHER REVENUE, FGIC INSURED) 5.50 07/01/2013 372,054
96 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
WISCONSIN TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
PUERTO RICO (continued)
$ 200,000 PUERTO RICO COMMONWEALTH REFUNDING INSURED PUBLIC IMPROVEMENT SERIES A
(FUEL SALES TAX REVENUE, NATL-RE INSURED) 5.50% 07/01/2016 $ 211,048
1,000,000 PUERTO RICO COMMONWEALTH REFUNDING PUBLIC IMPROVEMENT SERIES A-AGC-ICC
(SALES TAX REVENUE, GUARANTEE AGREEMENT) 5.50 07/01/2018 1,097,370
170,000 PUERTO RICO CONVENTION CENTER AUTHORITY SERIES A (OTHER REVENUE) 4.00 07/01/2010 171,032
355,000 PUERTO RICO ELECTRIC POWER AUTHORITY CAPITAL APPRECIATION SERIES O
(ELECTRIC REVENUE)## 3.65 07/01/2017 269,282
650,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES 00 (ELECTRIC REVENUE, CIFG
INSURED) 5.00 07/01/2013 696,371
900,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES JJ (ELECTRIC REVENUE, XLCA
INSURED) 5.25 07/01/2012 959,058
100,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES KK (ELECTRIC REVENUE XLCA
INSURED) 5.00 07/01/2011 104,284
500,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES WW (POWER REVENUE) 5.00 07/01/2011 521,420
500,000 PUERTO RICO ELECTRIC POWER AUTHORITY SERIES WW (POWER REVENUE) 5.25 07/01/2033 489,430
500,000 PUERTO RICO HFA CAPITAL FUNDING MODERNIZATION (HOUSING REVENUE) 5.50 12/01/2018 544,570
4,220,000 PUERTO RICO HFA CAPITAL FUNDING MODERNIZATION (HOUSING REVENUE) 5.13 12/01/2027 4,230,297
265,000 PUERTO RICO HFA UNREFUNDED BALANCE CAPITAL FUND PROGRAM
(HFFA, HUD INSURED) 5.00 12/01/2014 284,533
380,000 PUERTO RICO HFA UNREFUNDED BALANCE CAPITAL FUNDING PROGRAM
(HOUSING REVENUE, HUD LOAN INSURED) 5.00 12/01/2011 402,538
2,090,000 PUERTO RICO HFA VIVIENDA MODERNIZATION (HOUSING REVENUE) 4.75 10/01/2011 2,093,428
110,000 PUERTO RICO HOUSING FINANCIAL CORPORATION SERIES F8J
(HOUSING REVENUE, FHA INSURED)+/-ss 5.50 06/01/2021 110,000
535,000 PUERTO RICO INDUSTRIAL TOURIST EDUCATIONAL MEDICAL & ENVIRONMENTAL
CONTROL FACILITIES FINANCING AUHORITY INTERMEDIATE AMERICAN UNIVERSITY
SERIES A (COLLEGE & UNIVERSITY REVENUE, NATL-RE INSURED) 5.00 10/01/2010 539,243
25,000 PUERTO RICO INDUSTRIAL TOURIST EDUCATIONAL MEDICAL & ENVIRONMENTAL
CONTROL FACILITIES FINANCING AUTHORITY FHA INSURED DR. PILA HOSPITAL
PROJECT A (HCFR) 6.50 11/15/2020 25,907
60,000 PUERTO RICO INDUSTRIAL TOURIST EDUCATIONAL MEDICAL & ENVIRONMENTAL CONTROL
FACILITIES FINANCING AUTHORITY FHA INSURED DR. PILA HOSPITAL PROJECT A
(HCFR, FHA INSURED) 5.88 08/01/2012 60,194
195,000 PUERTO RICO INDUSTRIAL TOURIST EDUCATIONAL MEDICAL & ENVIRONMENTAL CONTROL
FACILITIES FINANCING AUTHORITY FHA INSURED DR. PILA HOSPITAL PROJECT A
(HCFR, NATL-RE INSURED) 5.50 07/01/2017 195,074
600,000 PUERTO RICO INDUSTRIAL TOURIST EDUCATIONAL MEDICAL & ENVIRONMENTAL CONTROL
FACILITIES UNIVERSITY PLAZA PROJECT SERIES A (COLLEGE & UNIVERSITY REVENUE,
NATL-RE INSURED) 5.63 07/01/2013 606,552
250,000 PUERTO RICO MUNICIPAL FINANCE AGENCY SERIES A
(PROPERTY TAX REVENUE, AGM INSURED) 5.63 08/01/2010 253,418
105,000 PUERTO RICO MUNICIPAL FINANCE AGENCY SERIES B
(PROPERTY TAX REVENUE, CIFG INSURED) 5.25 07/01/2017 110,102
30,000 PUERTO RICO PUBLIC BUILDINGS AUTHORITY GOVERNMENT FACILITIES SERIES D
PREREFUNDED (LEASE REVENUE) 5.13 07/01/2024 32,930
10,000 PUERTO RICO PUBLIC BUILDINGS AUTHORITY GOVERNMENT FACILITIES SERIES D
UNREFUNDED (LEASE REVENUE, COMMONWEALTH GUARANTEED) 5.13 07/01/2024 9,561
1,465,000 PUERTO RICO PUBLIC BUILDINGS AUTHORITY PREREFUNDED CAPITAL APPRECIATION
SERIES D (LEASE REVENUE, AMBAC INSURED)+/-ss 0.00 07/01/2030 1,462,480
1,500,000 PUERTO RICO PUBLIC FINANCE CORPORATION COMMONWEALTH APPROPRIATION SERIES A
(OTHER REVENUE, AMBAC INSURED) 5.13 06/01/2024 1,686,900
2,000,000 PUERTO RICO SALES TAX FINANCING CORPORATION FIRST SUBSERIES A
(SALES TAX REVENUE) 6.38 08/01/2039 2,158,260
1,185,000 UNIVERSITY OF PUERTO RICO SERIES P (COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2017 1,180,592
500,000 UNIVERSITY OF PUERTO RICO SERIES Q (COLLEGE & UNIVERSITY REVENUE) 5.00 06/01/2016 504,075
45,916,100
--------------
TEXAS: 1.64%
2,000,000 TARRANT COUNTY TX HOUSING FINANCE CORPORATION COMPOUND INTEREST
(SFMR, NATL-RE INSURED)## 2.96 09/15/2016 1,628,280
Wells Fargo Advantage Municipal Income Funds 97
Portfolio of Investments--December 31, 2009 (Unaudited)
WISCONSIN TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
TEXAS (continued)
$ 320,000 WACO TX NEW PUBLIC HOUSING AUTHORITY (HOUSING REVENUE, GUARANTEE AGREEMENT) 5.00% 08/01/2010 $ 328,186
1,956,466
--------------
VIRGIN ISLANDS: 7.04%
400,000 TOBACCO SETTLEMENT FINANCING CORPORATION VIRGIN ISLANDS ASSET-BACKED BONDS
(TOBACCO SETTLEMENT FUNDED REVENUE)+/-ss 4.50 05/15/2010 402,256
255,000 TOBACCO SETTLEMENT FINANCING CORPORATION VIRGIN ISLANDS AWWET-BACKED BONDS
(TOBACCO SETTLEMENT FUNDED REVENUE)+/-ss 4.60 05/15/2011 258,443
150,000 UNIVERSITY OF THE VIRGIN ISLANDS SERIES A (COLLEGE & UNIVERSITY REVENUE,
ACA GO INSURED) 5.85 12/01/2014 150,719
125,000 VIRGIN ISLANDS PFA (OTHER REVENUE, AGM BANK INSURED) 4.00 10/01/2010 127,471
590,000 VIRGIN ISLANDS PFA (OTHER REVENUE, AGM INSURED) 5.00 10/01/2014 642,504
250,000 VIRGIN ISLANDS PFA (SALES TAX REVENUE, NATL-RE INSURED) 5.00 10/01/2016 258,073
10,000 VIRGIN ISLANDS PFA ESCROWED TO MATURITY SERIES A (OTHER REVENUE) 7.30 10/01/2018 12,452
250,000 VIRGIN ISLANDS PFA GROSS TAX RECEIPTS (SALES TAX REVENUE, NATL-RE INSURED) 5.00 10/01/2012 263,953
2,700,000 VIRGIN ISLANDS PFA MATCHING FEDERAL LOAN NOTE SERIES A (SEWER REVENUE) 5.25 10/01/2019 2,725,164
1,000,000 VIRGIN ISLANDS PFA MATCHING FUND LOAN DIAGO SERIES A (OTHER REVENUE) 6.75 10/01/2037 1,049,440
1,000,000 VIRGIN ISLANDS PFA MATCHING FUND LOAN NOTES SERIES A (OTHER REVENUE) 6.00 10/01/2039 1,000,620
500,000 VIRGIN ISLANDS WATER & POWER AUTHORITY (ELECTRIC REVENUE, NATL-RE INSURED) 5.30 07/01/2021 500,365
750,000 VIRGIN ISLANDS WATER & POWER AUTHORITY REFUNDING ASSET GUARANTY IBCC
(WATER REVENUE, RADIAN-IBCC INSURED) 5.38 07/01/2010 754,748
300,000 VIRGIN ISLANDS WATER & POWER AUTHORITY SERIES A (WATER REVENUE) 5.00 07/01/2031 276,957
8,423,165
--------------
WEST VIRGINIA: 0.32%
470,000 KANAWHA MERCER NICHOLAS COUNTIES WV PREREFUNDED (SFMR)## 3.80 02/01/2015 387,604
--------------
WISCONSIN: 48.96%
20,000 ASHWAUBENON WI CDA ARENA PROJECT (LEASE REVENUE) 4.80 06/01/2016 21,182
100,000 ASHWAUBENON WI CDA ARENA PROJECT (LEASE REVENUE) 5.05 06/01/2019 108,036
815,000 ASHWAUBENON WI CDA ARENA PROJECT (LEASE REVENUE) 5.10 06/01/2020 881,455
95,000 BARABOO WI CDA (HOUSING REVENUE) 4.70 03/01/2010 95,420
80,000 BARABOO WI CDA (HOUSING REVENUE) 4.80 03/01/2011 82,370
50,000 BROWN COUNTY WI HOUSING AUTHORITY UNIVERSITY VILLAGE HOUSING INCORPORATED
PROJECT SERIES B (COLLEGE & UNIVERSITY REVENUE) 4.20 04/01/2012 51,228
100,000 BROWN COUNTY WI HOUSING AUTHORITY UNIVERSITY VILLAGE HOUSING INCORPORATED
PROJECT SERIES B (COLLEGE & UNIVERSITY REVENUE) 4.50 04/01/2014 101,798
1,540,000 CUDAHY WI CDA REDEVELOPMENT LEASE REVENUE REFUNDING SERIES B (LEASE
REVENUE) 4.55 06/01/2019 1,551,288
660,000 DELAFIELD WI CDA ST. JOHNS NORTHWESTERN MILITARY (RECREATIONAL FACILITIES
REVENUE) 4.60 06/01/2030 675,688
500,000 DELAFIELD WI CDA ST. JOHNS NORTHWESTERN MILITARY (RECREATIONAL FACILITIES
REVENUE) 4.70 06/01/2034 507,745
1,000,000 FONTANA ON GENEVA LAKE CDA (LEASE REVENUE) 4.45 06/01/2025 911,380
150,000 GLENDALE WI CDA BAYSHORE PUBLIC PARKING A (AUTO PARKING REVENUE) 4.75 10/01/2020 154,487
145,000 GLENDALE WI CDA TAX INCREMENT 6 (LEASE REVENUE) 5.00 10/01/2019 147,271
5,000 GREEN BAY BROWN COUNTY WI PROFESSIONAL FOOTBALL STADIUM DISTRICT LAMBEAU
FIELD RENOVATION PROJECT A (SALES TAX REVENUE, AMBAC INSURED) 4.35 02/01/2010 5,017
10,000 GREEN BAY BROWN COUNTY WI PROFESSIONAL FOOTBALL STADIUM DISTRICT LAMBEAU
FIELD RENOVATION PROJECT A (SALES TAX REVENUE, AMBAC INSURED) 4.45 02/01/2011 10,447
215,000 GREEN BAY BROWN COUNTY WI PROFESSIONAL FOOTBALL STADIUM DISTRICT LAMBEAU
FIELD RENOVATION PROJECT A (SALES TAX REVENUE, AMBAC INSURED) 4.75 02/01/2014 223,882
140,000 GREEN BAY BROWN COUNTY WI PROFESSIONAL FOOTBALL STADIUM DISTRICT LAMBEAU
FIELD RENOVATION PROJECT A (SALES TAX REVENUE, AMBAC INSURED) 5.00 02/01/2019 144,425
98 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
WISCONSIN TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
WISCONSIN (continued)
$ 1,250,000 GREEN BAY WI HOIUSING AUTHORITY STUDENT UNIVERSITY VILLAGE HOUSING
(COLLEGE & UNIVERSITY REVENUE) 5.00% 04/01/2030 $ 1,256,613
1,445,000 GREEN BAY WI HOUSING AUTHORITY UNIVERSITY VILLAGE HOUSING INCORPORATED
(COLLEGE & UNIVERSITY REVENUE) 5.00 04/01/2016 1,532,394
250,000 GREEN BAY WI RDA BELLIN MEMORIAL HOSPITAL (HCFR) 5.50 12/01/2023 260,170
20,000 GREEN BAY WI RDA BELLIN MEMORIAL HOSPITAL SERIES A (HCFR) 5.00 02/15/2013 20,630
10,000 GREEN BAY WI RDA BELLIN MEMORIAL HOSPITAL SERIES A (HCFR) 5.50 02/15/2021 10,099
100,000 GREEN BAY WI RDA PINE STREET PARKING RAMP PROJECT (LEASE REVENUE) 5.15 04/01/2013 101,033
320,000 GREEN BAY WI RDA PINE STREET PARKING RAMP PROJECT (LEASE REVENUE) 2.10 04/01/2014 321,331
125,000 GREEN BAY WI RDA PINE STREET PARKING RAMP PROJECT (LEASE REVENUE) 2.50 04/01/2015 125,740
405,000 GREEN BAY WI RDA PINE STREET PARKING RAMP PROJECT (LEASE REVENUE) 2.70 04/01/2016 401,306
500,000 GREENFIELD WI CDA HOUSING REVENUE LAYTON TERRACE PROJECT (HOUSING
REVENUE)+/-ss 4.75 09/01/2033 503,030
400,000 HALES CORNERS WI CDA LUTHERAN CHURCH PROJECT (IDR, PNC BANK NA LOC)+/-ss 0.37 08/01/2037 400,000
245,000 JOHNSON CREEK WI CDA PREREFUNDED (LEASE REVENUE) 4.65 12/01/2012 254,437
10,000 JOHNSON CREEK WI CDA PREREFUNDED (LEASE REVENUE) 5.00 12/01/2016 10,417
1,000,000 KRONENWETTER WI RDA (OTHER REVENUE) 4.50 05/01/2011 1,010,350
200,000 LITTLE CHUTE WI CDA (LEASE REVENUE) 4.25 03/01/2017 204,700
200,000 LITTLE CHUTE WI CDA (LEASE REVENUE) 4.35 03/01/2018 203,098
5,000,000 MADISON WI CDA WISCONSIN ALUMNI RESEARCH FOUNDATION (COLLEGE & UNIVERSITY
REVENUE) 5.00 10/01/2039 5,280,100
265,000 MILWAUKEE RDA MILWAUKEE SCHOOL ENERGY PROJECT SERIES B
(COLLEGE & UNIVERSITY REVENUE) 4.00 07/01/2011 272,118
1,000,000 MILWAUKEE WI HOUSING AUTHORITY VETERANS HOUSING PROJECT
(HOUSING REVENUE, FNMA INSURED) 5.10 07/01/2022 1,068,030
1,350,000 MILWAUKEE WI RDA HEARTLOVE PLACE PROJECT
(OTHER REVENUE, CITIZENS BANK LOC)+/-ss 1.39 06/01/2037 1,350,000
470,000 MILWAUKEE WI RDA MILWAUKEE SCHOOL ENGINEERING PROJECT SERIES B
(COLLEGE & UNIVERSITY REVENUE, MARSHALL & ILSLEY LOC)ss 5.05 07/01/2019 477,830
470,000 MILWAUKEE WI RDA MILWAUKEE SCHOOL ENGINEERING PROJECT SERIES B
(COLLEGE & UNIVERSITY REVENUE, MARSHALL & ILSLEY LOC)ss 5.15 07/01/2020 477,816
470,000 MILWAUKEE WI RDA MILWAUKEE SCHOOL ENGINEERING PROJECT SERIES B
(COLLEGE & UNIVERSITY REVENUE, MARSHALL & ILSLEY LOC)ss 5.20 07/01/2021 478,263
470,000 MILWAUKEE WI RDA MILWAUKEE SCHOOL ENGINEERING PROJECT SERIES B
(COLLEGE & UNIVERSITY REVENUE, MARSHALL & ILSLEY LOC)ss 5.30 07/01/2022 478,700
470,000 MILWAUKEE WI RDA MILWAUKEE SCHOOL ENGINEERING PROJECT SERIES B
(COLLEGE & UNIVERSITY REVENUE, MARSHALL & ILSLEY LOC)ss 5.35 07/01/2023 478,089
50,000 MILWAUKEE WI RDA PUBLIC SCHOOLS (OTHER REVENUE, AMBAC INSURED) 3.80 08/01/2014 52,682
550,000 MILWAUKEE WI RDA PUBLIC SCHOOLS (OTHER REVENUE, AMBAC MORAL OBLIGATION
INSURED) 4.25 08/01/2019 559,312
100,000 MILWAUKEE WI RDA PUBLIC SCHOOLS NEIGHBORHOOD SCHOOLS SERIES A (OTHER
REVENUE, AMBAC INSURED) 4.20 08/01/2012 106,692
100,000 MILWAUKEE WI RDA SCHOOL ENGINEERING PROJECT SERIES A (COLLEGE & UNIVERSITY
REVENUE, AMBAC INSURED) 4.20 10/01/2010 100,322
880,000 MILWAUKEE WI RDA SCIENCE EDUCATION CONSORTIUM PROJECT SERIES A (OTHER
REVENUE) 5.13 08/01/2015 836,070
300,000 MILWAUKEE WI RDA SCIENCE EDUCATION CONSORTIUM PROJECT SERIES A (OTHER
REVENUE) 5.63 08/01/2025 255,900
500,000 MILWAUKEE WI RDA SCIENCE EDUCATION CONSORTIUM PROJECT SERIES A (OTHER
REVENUE) 5.75 08/01/2035 401,510
95,000 MILWAUKEE WI RDA SUMMERFEST PROJECT (LEASE REVENUE) 4.20 08/01/2011 99,522
1,000,000 MONROE WI REDEVELOPMENT AUTHORITY MONROE CLINIC INCORPORATED (HCFR) 5.50 02/15/2029 997,590
1,500,000 MONROE WI REDEVELOPMENT AUTHORITY MONROE CLINIC INCORPORATED (HCFR) 5.88 02/15/2039 1,504,605
300,000 NEENAH WI CDA SERIES A (LEASE REVENUE) 4.13 12/01/2018 309,450
1,000,000 NEENAH WI CDA SERIES A (LEASE REVENUE) 5.13 12/01/2023 1,054,380
350,000 OAKFIELD WI CDA (LEASE REVENUE) 5.40 12/01/2021 351,771
Wells Fargo Advantage Municipal Income Funds 99
Portfolio of Investments--December 31, 2009 (Unaudited)
WISCONSIN TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
WISCONSIN (continued)
$ 210,000 ONALASKA WI CDA (LEASE REVENUE) 5.30% 06/01/2015 $ 210,292
200,000 OSCEOLA WI RDA (LEASE REVENUE) 4.65 12/01/2010 204,708
325,000 OSCEOLA WI RDA (LEASE REVENUE) 4.75 12/01/2011 339,160
235,000 OSCEOLA WI RDA (LEASE REVENUE) 5.15 12/01/2015 240,349
410,000 OSCEOLA WI RDA (LEASE REVENUE) 5.38 12/01/2020 412,780
1,545,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT JUNIOR LIEN 5.38 12/01/2020 412,780
SERIES B (SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2015 1,680,126
1,300,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT JUNIOR LIEN 5.50 12/15/2015 1,680,126
SERIES B (SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2017 1,411,852
160,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2015 183,128
100,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.00 12/15/2017 107,644
1,765,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2017 2,012,065
280,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2018 330,394
240,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2021 286,848
1,600,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2023 1,834,384
665,000 SOUTHEAST WISCONSIN PROFESSIONAL BASEBALL PARK DISTRICT SERIES A
(SALES TAX REVENUE, NATL-RE INSURED) 5.50 12/15/2026 758,625
120,000 ST. CROIX FALLS WI CDA (LEASE REVENUE) 4.40 12/01/2011 126,295
80,000 ST. CROIX FALLS WI CDA (LEASE REVENUE) 4.50 12/01/2011 83,114
160,000 ST. CROIX FALLS WI CDA (LEASE REVENUE) 4.50 12/01/2012 167,550
90,000 ST. CROIX FALLS WI CDA (LEASE REVENUE) 4.85 12/01/2014 93,632
275,000 STURGEON BAY WI WATERFRONT RDA REFUNDED SERIES A (OTHER REVENUE) 4.50 10/01/2021 275,569
75,000 STURTEVANT WI CDA (LEASE REVENUE) 4.60 12/01/2010 75,157
110,000 STURTEVANT WI CDA (LEASE REVENUE) 4.80 12/01/2012 110,195
100,000 STURTEVANT WI CDA (LEASE REVENUE) 5.00 12/01/2012 99,514
300,000 STURTEVANT WI CDA (LEASE REVENUE) 4.40 12/01/2015 302,823
100,000 STURTEVANT WI CDA (LEASE REVENUE) 4.55 12/01/2016 100,602
25,000 SUN PRAIRIE WI CDA SERIES B (LEASE REVENUE) 5.00 02/01/2012 25,088
95,000 SUN PRAIRIE WI CDA SERIES B (LEASE REVENUE) 5.10 02/01/2013 95,342
105,000 SUN PRAIRIE WI CDA SERIES B (LEASE REVENUE) 5.20 02/01/2014 105,386
300,000 SUN PRAIRIE WI CDA TAX INCREMENTAL # 6 & 7 (LEASE REVENUE) 3.80 02/01/2018 300,399
220,000 SUN PRAIRIE WI CDA TAX INCREMENTAL # 6 & 7 (LEASE REVENUE) 4.00 02/01/2019 218,357
250,000 SUN PRAIRIE WI CDA TAX INCREMENTAL # 6 & 7 (LEASE REVENUE) 4.50 02/01/2022 251,913
100,000 VERONA WI CDA (ECONOMIC DEVELOPMENT REVENUE) 4.30 02/01/2015 104,345
775,000 VERONA WI CDA (LEASE REVENUE) 5.38 12/01/2022 789,539
170,000 WARRENS WI CDA (LEASE REVENUE) 5.00 11/01/2016 175,763
320,000 WARRENS WI CDA (LEASE REVENUE) 5.10 11/01/2020 304,538
50,000 WATERFORD WI CDA PREREFUNDED (LEASE REVENUE) 5.35 10/01/2014 51,852
95,000 WATERFORD WI CDA PREREFUNDED (LEASE REVENUE) 5.80 10/01/2023 98,837
500,000 WAUKESHA COUNTY WI HOUSING AUTHORITY BROOKFIELD WOODS PROJECT
(HOUSING REVENUE, FIRSTAR BANK LOC)+/-ss 4.80 03/01/2034 500,835
105,000 WAUKESHA COUNTY WI HOUSING AUTHORITY STEEPLE VIEW INCORPORATED PROJECT
(HOUSING REVENUE, ASSOCIATED BANK LOC)+/-ss 0.74 12/01/2034 105,000
340,000 WAUKESHA COUNTY WI HOUSING AUTHORITY THE ARBORETUM PROJECT
(HOUSING REVENUE)+/-ss 5.00 12/01/2027 347,667
720,000 WESTON WI CDA SERIES A (LEASE REVENUE) 5.25 10/01/2020 755,993
1,705,000 WISCONSIN CENTER DISTRICT CAPITAL APPRECIATION BONDS
(TAX REVENUE, AGM INSURED)## 5.24 12/15/2030 587,441
230,000 WISCONSIN CENTER DISTRICT JUNIOR DEDICATED (OTHER REVENUE, AGM INSURED) 5.25 12/15/2027 257,138
100 Wells Fargo Advantage Municipal Income Funds
Portfolio of Investments--December 31, 2009 (Unaudited)
WISCONSIN TAX-FREE FUND
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
- ------------ --------------------------------------------------------------------------- -------- ---------- --------------
WISCONSIN (continued)
$ 280,000 WISCONSIN CENTER DISTRICT JUNIOR DEDICATED (TAX REVENUE, AGM INSURED) 5.25% 12/15/2015 $ 317,156
335,000 WISCONSIN CENTER DISTRICT JUNIOR DEDICATED (TAX REVENUE, AGM INSURED) 5.25 12/15/2016 377,759
50,000 WISCONSIN CENTER DISTRICT JUNIOR DEDICATED (TAX REVENUE, AGM INSURED) 5.25 12/15/2018 56,056
500,000 WISCONSIN CENTER DISTRICT JUNIOR DEDICATED (TAX REVENUE, AGM INSURED) 5.25 12/15/2019 560,280
325,000 WISCONSIN CENTER DISTRICT JUNIOR DEDICATED (TAX REVENUE, AGM INSURED) 5.25 12/15/2023 364,413
65,000 WISCONSIN DELLS CDA SERIES A (LEASE REVENUE) 4.65 09/01/2014 66,405
70,000 WISCONSIN DELLS CDA SERIES A (LEASE REVENUE) 4.80 09/01/2015 71,112
80,000 WISCONSIN DELLS CDA SERIES A (LEASE REVENUE) 5.00 09/01/2017 80,724
135,000 WISCONSIN HFA REVENUE PREREFUNDED (HOUSING REVENUE, FHA INSURED) 6.10 06/01/2021 161,532
1,770,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY AMT SERIES A
(HOUSING REVENUE, GO OF AUTHORITY) 4.75 05/01/2037 1,789,718
25,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY AMT SERIES A
(HOUSING REVENUE, GO OF AUTHORITY) 4.63 11/01/2037 21,980
300,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY AMT SERIES A
(HOUSING REVENUE, GO OF AUTHORITY) 4.70 05/01/2047 259,356
2,120,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY AMT SERIES D
(HOUSING REVENUE, GO OF AUTHORITY HUD LOAN)+/-ss 0.50 05/01/2029 2,120,000
1,960,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY SERIES A
(ECONOMIC DEVELOPMENT REVENUE)+/-ss 4.25 12/01/2035 2,059,548
2,245,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY SERIES E
(HOUSING REVENUE, GO OF AUTHORITY) 4.90 11/01/2035 2,184,531
2,275,000 WISCONSIN HOUSING & ECONOMIC DEVELOPMENT VARIOUS AMT SERIES E
(HOUSING REVENUE, GO OF AUTHORITY HUD LOAN)+/-ss 0.50 05/01/2030 2,275,000
58,567,028
--------------
TOTAL MUNICIPAL BONDS & NOTES (COST $116,828,755) 119,150,117
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $116,828,755)* 99.61% 119,150,117
OTHER ASSETS AND LIABILITIES, NET 0.39 471,863
------ --------------
TOTAL NET ASSETS 100.00% $ 119,621,980
------ --------------
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
## Zero coupon security. Interest rate presented is yield to maturity.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
* Cost for federal income tax purposes is $116,819,083 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $2,695,464
Gross unrealized depreciation (364,430)
----------
Net unrealized appreciation $2,331,034
The accompanying notes are an integral part of these financial statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
102 Wells Fargo Advantage Municipal Income Funds
Statements of Assets and Liabilities--December 31, 2009 (Unaudited)
Intermediate
Tax/ Municipal
AMT-Free Fund Bond Fund
-------------- ------------
ASSETS
Investments
In unaffiliated securities, at value ................ $734,984,022 $780,644,895
In affiliated securities, at value .................. 10,403,145 7,799,564
------------ ------------
Total investments at value (see cost below) ............ 745,387,167 788,444,459
------------ ------------
Cash ................................................... 0 50,000
Receivable for Fund shares issued ...................... 4,173,400 3,188,960
Receivable for investment sold ......................... 5,700,601 6,556,722
Receivable for interest ................................ 8,984,919 9,996,996
------------ ------------
Total assets ........................................... 764,246,087 808,237,137
------------ ------------
LIABILITIES
Due to custodian bank .................................. 9,852,220 0
Payable for Fund shares redeemed ....................... 1,141,632 948,289
Payable for investment purchased ....................... 7,382,462 0
Dividends payable ...................................... 568,975 1,325,406
Payable to investment advisor and affiliates ........... 316,745 314,165
Accrued expenses and other liabilities ................. 152,366 159,676
------------ ------------
Total liabilities ......................................... 19,414,400 2,747,536
------------ ------------
TOTAL NET ASSETS .......................................... $744,831,687 $805,489,601
============ ============
NET ASSETS CONSIST OF
Paid-in capital ........................................ $744,643,813 $810,419,550
Undistributed/overdistributed net investment income .... (7,902 (22,518)
Accumulated net realized loss on investments ........... (9,170,334 (790,707)
Net unrealized depreciation of investments ............. 9,366,110 (4,116,724)
------------ ------------
TOTAL NET ASSETS .......................................... $744,831,687 $805,489,601
------------ ------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A ................................... $143,597,530 $302,350,009
Shares outstanding - Class A ........................... 13,419,455 32,339,674
Net asset value per share - Class A .................... $ 10.70 $ 9.35
Maximum offering price per share - Class A ............. $ 11.03 $ 9.79
Net assets - Class B ................................... NA $ 4,836,600
Shares outstanding - Class B ........................... NA 517,205
Net asset value per share - Class B .................... NA $ 9.35
Net assets - Class C ................................... $ 17,337,952 $ 21,050,937
Shares outstanding - Class C ........................... 1,620,301 2,252,037
Net asset value per share - Class C .................... $ 10.70 $ 9.35
Net assets - Administrator Class ....................... $ 97,892,759 $184,800,167
Shares outstanding - Administrator Class ............... 9,142,624 19,772,508
Net asset value per share - Administrator Class ........ $ 10.71 $ 9.35
Net assets - Institutional Class ....................... $ 15,605,425 $ 629,211
Shares outstanding - Institutional Class ............... 1,457,307 67,333
Net asset value per share - Institutional Class ........ $ 10.71 $ 9.34
Net assets - Investor Class ............................ $470,398,021 $291,822,677
Shares outstanding - Investor Class .................... 43,976,759 31,218,966
Net asset value per share - Investor Class ............. $ 10.70 $ 9.35
------------ ------------
Investments at cost ....................................... $736,021,057 $792,561,183
============ ============
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 103
Statements of Assets and Liabilities--December 31, 2009 (Unaudited)
Short-Term Ultra Short-Term
Municipal Municipal Wisconsin
Bond Fund Income Fund Tax-Free Fund
- -------------- ---------------- -------------
$2,469,551,658 $7,493,340,879 $119,150,117
120,250,311 20,772,132 0
- -------------- -------------- ------------
2,589,801,969 7,514,113,011 119,150,117
- -------------- -------------- ------------
0 0 43,611
18,046,623 119,674,444 406,306
23,543,822 79,965,694 300,000
22,298,070 40,564,136 1,040,202
- -------------- -------------- ------------
2,653,690,484 7,754,317,285 120,940,236
- -------------- -------------- ------------
20,158,759 121,844,064 0
5,740,376 23,835,966 309,466
94,790,767 82,016,638 850,000
1,619,681 2,828,459 80,945
969,569 3,112,916 53,124
451,521 1,277,736 24,721
- -------------- -------------- ------------
123,730,673 234,915,779 1,318,256
- -------------- -------------- ------------
$2,529,959,811 $7,519,401,506 $119,621,980
============== ============== ============
$2,516,250,994 $7,534,741,952 $118,046,910
37,272 (346,160) (5,757)
(5,727,797) (50,464,599) (740,535)
19,399,342 35,470,313 2,321,362
- -------------- -------------- ------------
$2,529,959,811 $7,519,401,506 $119,621,980
============== ============== ============
$ 557,892,659 $3,947,338,506 $ 6,471,030
56,588,258 820,912,543 612,590
$ 9.86 $ 4.81 $ 10.56
$ 10.16 $ 4.91 $ 11.06
NA NA NA
NA NA NA
NA NA NA
$ 110,208,722 $ 449,706,229 $ 9,960,103
11,178,295 93,423,165 942,918
$ 9.86 $ 4.81 $ 10.56
NA NA NA
NA NA NA
NA NA NA
$ 203,023,046 $1,458,418,057 NA
20,558,609 303,269,772 NA
$ 9.88 $ 4.81 NA
$1,658,835,384 $1,663,938,714 $103,190,847
168,078,057 345,749,907 9,768,699
$ 9.87 $ 4.81 $ 10.56
- -------------- -------------- ------------
$2,570,402,627 $7,478,642,698 $116,828,755
============== ============== ============
104 Wells Fargo Advantage Municipal Income Funds
Statements of Operations--For the Six Months Ended December 31, 2009 (Unaudited)
Intermediate Tax/ Municipal
AMT-Free Fund Bond Fund
----------------- ------------
INVESTMENT INCOME
Interest from unaffiliated securities............................. $14,148,561 $20,148,711
Interest from affiliated securities............................... 4,074 5,045
----------- -----------
Total investment income.............................................. 14,152,635 20,153,756
----------- -----------
EXPENSES
Advisory fees..................................................... 1,127,495 1,285,367
Administration fees
Fund level..................................................... 163,608 187,896
Class A........................................................ 124,412 241,934
Class B........................................................ NA 5,265
Class C........................................................ 11,943 15,883
Administrator Class............................................ 4,429 74
Institutional Class............................................ 497,365 321,688
Investor Class................................................. 29,683 89,678
Custody fees...................................................... 41,795 49,282
Shareholder servicing fees........................................ 795,894 933,214
Accounting fees................................................... 21,594 19,758
Distribution fees
Class B........................................................ NA 21,936
Class C........................................................ 49,746 66,181
Professional fees................................................. 20,685 25,789
Registration fees................................................. 38,283 23,969
Shareholder reports............................................... 33,413 36,622
Trustees' fees.................................................... 5,419 5,419
Other fees and expenses........................................... 6,308 9,005
----------- -----------
Total expenses....................................................... 2,972,072 3,338,960
----------- -----------
LESS:
Waived fees and reimbursed expenses............................... (568,680) (497,062)
Net expenses...................................................... 2,403,392 2,841,898
----------- -----------
Net investment income................................................ 11,749,243 17,311,858
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Unaffiliated securities........................................... (116,899) 8,533,391
Futures transactions.............................................. (22,441) (413,919)
----------- -----------
Net realized gain (loss) on investments.............................. (139,340) 8,119,472
----------- -----------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Unaffiliated securities........................................... 27,713,008 45,840,517
----------- -----------
Net change in unrealized appreciation (depreciation) of investments.. 27,713,008 45,840,517
----------- -----------
Net realized and unrealized gain on investments...................... 27,573,668 53,959,989
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $39,322,911 $71,271,847
=========== ===========
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 105
Statements of Operations--For the Six Months Ended December 31, 2009 (Unaudited)
Short-Term Ultra Short-Term
Municipal Municipal Wisconsin
Bond Fund Income Fund Tax-Free Fund
- ----------- ---------------- -------------
$33,425,106 $78,942,596 $2,164,676
108,856 460,792 0
- ----------- ----------- ----------
33,533,962 79,403,388 2,164,676
- ----------- ----------- ----------
2,989,431 9,335,174 207,931
466,218 1,623,118 29,705
285,769 3,117,519 5,586
NA NA NA
56,901 362,521 8,360
NA NA NA
47,640 413,441 NA
1,569,781 1,839,582 118,821
107,060 400,527 7,991
2,157,880 6,740,253 148,062
39,634 134,869 6,239
NA NA NA
237,087 1,510,503 34,835
22,980 25,731 19,742
41,924 117,447 20,413
41,640 48,140 4,335
5,419 5,419 5,419
10,976 12,682 2,310
- ----------- ----------- ----------
8,080,340 25,686,926 619,749
- ----------- ----------- ----------
(1,957,784) (3,550,332) (141,317)
6,122,556 22,136,594 478,432
- ----------- ----------- ----------
27,411,406 57,266,794 1,686,244
- ----------- ----------- ----------
5,803,367 14,865,717 581,355
57,216 0 0
- ----------- ----------- ----------
5,860,583 14,865,717 581,355
- ----------- ----------- ----------
25,798,356 25,579,438 1,950,616
- ----------- ----------- ----------
25,798,356 25,579,438 1,950,616
- ----------- ----------- ----------
31,658,939 40,445,155 2,531,971
- ----------- ----------- ----------
$59,070,345 $97,711,949 $4,218,215
=========== =========== ==========
106 Wells Fargo Advantage Municipal Income Funds
Statements of Changes in Net Assets
INTERMEDIATE TAX/AMT-FREE FUND
---------------------------------
For the
Six Months Ended For the
December 31, 2009 Year Ended
(Unaudited) June 30, 2009
----------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets............................................................ $540,730,004 $ 505,380,484
OPERATIONS
Net investment income........................................................... 11,749,243 21,864,065
Net realized gain (loss) on investments......................................... (139,340) (8,954,384)
Net change in unrealized appreciation (depreciation) of investments............. 27,713,008 (9,500,702)
------------ -------------
Net increase in net assets resulting from operations............................... 39,322,911 3,408,979
------------ -------------
DISTRIBUTION TO SHAREHOLDERS FROM
Net investment income
Class A...................................................................... (2,509,686) (3,393,261)
Class B NA NA
Class C...................................................................... (186,923) (242,024)
Administrator Class.......................................................... (1,072,406) (508,542)
Institutional Class.......................................................... (215,131) (109,669)
Investor Class............................................................... (7,744,952) (17,613,321)
Net realized gains
Class A...................................................................... 0 (72,111)
Class B NA NA
Class C...................................................................... 0 (6,476)
Administrator Class.......................................................... 0 (11,520)
Institutional Class.......................................................... 0 (354)
Investor Class............................................................... 0 (391,981)
------------ -------------
Total distributions to shareholders................................................ (11,729,098) (22,349,259)
------------ -------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A............................................. 85,892,204 122,336,615
Reinvestment of distributions - Class A......................................... 1,905,397 2,613,685
Cost of shares redeemed - Class A............................................... (74,683,327) (29,675,721)
------------ -------------
Net increase in net assets resulting from capital share transactions - Class A.. 13,114,274 95,274,579
------------ -------------
Proceeds from shares sold - Class B NA NA
Reinvestment of distributions - Class B NA NA
Cost of shares redeemed - Class B NA NA
------------ -------------
Net increase in net assets resulting from capital share transactions - Class B NA NA
------------ -------------
Proceeds from shares sold - Class C............................................. 9,453,799 7,801,146
Reinvestment of distributions - Class C......................................... 118,200 161,241
Cost of shares redeemed - Class C............................................... (2,319,628) (1,568,460)
------------ -------------
Net increase in net assets resulting from capital share transactions - Class C.. 7,252,371 6,393,927
------------ -------------
Proceeds from shares sold - Administrator Class................................. 85,970,631 6,213,235
Reinvestment of distributions - Administrator Class............................. 1,020,887 497,453
Cost of shares redeemed - Administrator Class................................... (4,129,337) (3,679,177)
------------ -------------
Net increase in net assets resulting from capital share transactions -
Administrator Class.......................................................... 82,862,181 3,031,511
------------ -------------
Proceeds from shares sold - Institutional Class................................. 9,471,620 7,750,800
Reinvestment of distributions - Institutional Class............................. 56,641 23,465
Cost of shares redeemed - Institutional Class................................... (705,745) (1,478,798)
------------ -------------
Net increase in net assets resulting from capital share transactions -
Institutional Class.......................................................... 8,822,516 6,295,467
------------ -------------
Proceeds from shares sold - Investor Class...................................... 123,380,064 157,159,693
Reinvestment of distributions - Investor Class.................................. 6,326,057 15,291,639
Cost of shares redeemed - Investor Class........................................ (65,249,593) (229,157,016)
------------ -------------
Net increase in net assets resulting from capital share transactions - Investor
Class........................................................................ 64,456,528 (56,705,684)
------------ -------------
Net increase in net assets resulting from capital share transactions - Total....... 176,507,870 54,289,800
------------ -------------
NET INCREASE IN NET ASSETS......................................................... 204,101,683 35,349,520
============ =============
ENDING NET ASSETS.................................................................. $744,831,687 $ 540,730,004
============ =============
Ending balance of undistributed net investment income.............................. $ (7,902) $ (28,047)
------------ -------------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 107
Statements of Changes in Net Assets
ULTRA SHORT-TERM
MUNICIPAL BOND FUND SHORT-TERM MUNICIPAL BOND FUND MUNICIPAL INCOME FUND
- --------------------------------- --------------------------------- ----------------------------------
For the For the For the
Six Months Ended For the Six Months Ended For the Six Months Ended For the
December 31, 2009 Year Ended December 31, 2009 Year Ended December 31, 2009 Year Ended
(Unaudited) June 30, 2009 (Unaudited) June 30, 2009 (Unaudited) June 30, 2009
- ----------------- ------------- ----------------- -------------- ----------------- --------------
$645,970,143 $ 399,512,398 $1,182,095,493 $ 801,864,921 $ 4,360,740,417 $ 956,688,566
17,311,858 30,805,814 27,411,406 38,755,601 57,266,794 71,600,699
8,119,472 (441,109) 5,860,583 (3,235,666) 14,865,717 9,785,472
45,840,517 (37,400,722) 25,798,356 1,559,717 25,579,438 12,743,737
------------ ------------- -------------- -------------- --------------- --------------
71,271,847 (7,036,017) 59,070,345 37,079,652 97,711,949 94,129,908
------------ ------------- -------------- -------------- --------------- --------------
(6,110,158) (9,993,752) (4,596,049) (4,031,508) (30,438,586) (23,251,586)
(112,785) (386,514) NA NA NA NA
(331,611) (430,693) (661,234) (359,876) (2,041,716) (1,515,764)
(4,232,586) (8,050,361) NA NA NA NA
(4,299) (534) (1,799,567) (35,014) (10,496,310) (9,175,348)
(6,322,697) (11,973,764) (20,192,538) (34,329,186) (14,199,855) (37,657,990)
(2,198,525) 0 0 0 0 0
(35,662) 0 NA NA NA NA
(152,345) 0 0 0 0 0
(3,647) 0 NA NA NA NA
(2,149,008) 0 0 0 0 0
(1,350,580) 0 0 0 0 0
------------ ------------- -------------- -------------- --------------- --------------
(23,003,903) (30,835,618) (27,249,388) (38,755,584) (57,176,467) (71,600,688)
------------ ------------- -------------- -------------- --------------- --------------
72,452,939 229,321,189 533,466,731 271,963,431 3,227,790,537 2,471,824,277
6,157,636 7,073,284 2,646,589 1,336,640 22,710,769 18,996,223
(14,678,049) (123,156,897) (118,983,500) (137,364,554) (1,552,548,193) (386,351,050)
------------ ------------- -------------- -------------- --------------- --------------
63,932,526 113,237,576 417,129,820 135,935,517 1,697,953,113 2,104,469,450
------------ ------------- -------------- -------------- --------------- --------------
8,415 14,238,274 NA NA NA NA
110,693 268,431 NA NA NA NA
(2,155,751) (12,621,709) NA NA NA NA
------------ ------------- -------------- -------------- --------------- --------------
(2,036,643) 1,884,996 NA NA NA NA
------------ ------------- -------------- -------------- --------------- --------------
8,045,648 20,525,642 91,114,604 18,235,868 234,826,791 261,384,874
287,655 233,003 442,683 232,941 1,321,364 1,071,372
(771,784) (8,730,855) (4,028,288) (2,594,193) (44,547,363) (10,438,680)
------------ ------------- -------------- -------------- --------------- --------------
7,561,519 12,027,790 87,528,999 15,874,616 191,600,792 252,017,566
------------ ------------- -------------- -------------- --------------- --------------
36,195,154 351,174,657 NA NA NA NA
1,090,149 1,458,111 NA NA NA NA
(21,266,163) (208,975,722) NA NA NA NA
------------ ------------- -------------- -------------- --------------- --------------
16,019,140 143,657,046 NA NA NA NA
------------ ------------- -------------- -------------- --------------- --------------
621,242 0 261,822,554 6,023,000 1,275,119,498 610,307,777
349 534 1,592,134 35,014 7,686,832 6,928,317
0 0 (68,397,837) 0 (373,577,043) (172,388,617)
------------ ------------- -------------- -------------- --------------- --------------
621591 534 195,016,851 6,058,014 909,229,287 444,847,477
------------ ------------- -------------- -------------- --------------- --------------
52,722,281 88,675,061 766,107,762 558,692,106 938,303,032 1,217,959,631
7,008,571 9,746,328 16,536,716 28,239,662 10,848,965 31,216,921
(34,577,471) (84,899,951) (166,276,787) (362,893,411) (629,809,582) (668,988,414)
------------ ------------- -------------- -------------- --------------- --------------
25,153,381 13,521,438 616,367,691 224,038,357 319,342,415 580,188,138
------------ ------------- -------------- -------------- --------------- --------------
111,251,514 284,329,380 1,316,043,361 381,906,504 3,118,125,607 3,381,522,631
------------ ------------- -------------- -------------- --------------- --------------
159,519,458 246,457,745 1,347,864,318 380,230,572 3,158,661,089 3,404,051,851
============ ============= ============== ============== =============== ==============
$805,489,601 $ 645,970,143 $2,529,959,811 $1,182,095,493 $ 7,519,401,506 $4,360,740,417
============ ============= ============== ============== =============== ==============
$ (22,518) (220,240) $ 37,272 $ (124,746) $ (346,160) $ (436,487)
------------ ------------- -------------- -------------- --------------- --------------
108 Wells Fargo Advantage Municipal Income Funds
Statements of Changes in Net Assets
INTERMEDIATE TAX/AMT-FREE FUND
---------------------------------
For the
Six Months Ended For the
December 31, 2009 Year Ended
(Unaudited) June 30, 2009
----------------- -------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .................................................................. 8,131,195 11,975,124
Shares issued in reinvestment of distributions - Class A ............................... 180,005 259,189
Shares redeemed - Class A .............................................................. (7,066,444) (2,955,509)
---------- ----------
Net increase in shares outstanding - Class A ........................................... 1,244,756 9,278,804
---------- ----------
Shares sold - Class B .................................................................. NA NA
Shares issued in reinvestment of distributions - Class B ............................... NA NA
Shares redeemed - Class B .............................................................. NA NA
---------- ----------
Net (decrease) in shares outstanding - Class B ......................................... NA NA
---------- ----------
Shares sold - Class C .................................................................. 888,382 763,427
Shares issued in reinvestment of distributions - Class C ............................... 11,137 15,992
Shares redeemed - Class C .............................................................. (219,929) (154,876)
---------- ----------
Net increase in shares outstanding - Class C ........................................... 679,590 624,543
---------- ----------
Shares sold - Administrator Class ...................................................... 8,113,908 607,217
Shares issued in reinvestment of distributions - Administrator Class ................... 95,578 49,243
Shares redeemed - Administrator Class .................................................. (387,452) (364,418)
---------- ----------
Net increase in shares outstanding - Administrator Class ............................... 7,822,034 292,042
---------- ----------
Shares sold - Institutional Class ...................................................... 896,969 764,164
Shares issued in reinvestment of distributions - Institutional Class ................... 5,314 2,329
Shares redeemed - Institutional Class .................................................. (66,237) (146,189)
---------- ----------
Net increase in shares outstanding - Institutional Class ............................... 836,046 620,304
---------- ----------
Shares sold - Investor Class ........................................................... 11,633,454 15,439,710
Shares issued in reinvestment of distributions - Investor Class ........................ 597,050 1,512,482
Shares redeemed - Investor Class ....................................................... (6,175,208) (22,795,123)
---------- ----------
Net increase in shares outstanding - Administrator Class ............................... 6,055,296 (5,842,931)
---------- ----------
NET INCREASE IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .............. 16,637,722 4,972,762
========== ----------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 109
Statements of Changes in Net Assets
MUNICIPAL BOND FUND SHORT-TERM MUNICIPAL BOND FUND ULTRA SHORT-TERM MUNICIPAL INCOME FUND
- --------------------------------- --------------------------------- --------------------------------------
For the For the For the
Six Months Ended For the Six Months Ended For the Six Months Ended For the
December 31, 2009 Year Ended December 31, 2009 Year Ended December 31, 2009 Year Ended
(Unaudited) June 30, 2009 (Unaudited) June 30, 2009 (Unaudited) June 30, 2009
- ----------------- ------------- ----------------- ------------- ----------------- -------------
8,018,300 25,518,667 54,482,524 28,158,812 673,322,051 520,193,935
663,675 827,537 269,631 140,738 4,735,627 4,002,237
(1,590,011) (13,669,303) (12,196,209) (14,267,238) (323,560,040) (81,487,843)
---------- ----------- ----------- ----------- ------------ -----------
7,091,964 12,676,901 42,555,946 14,032,312 354,497,638 442,708,329
---------- ----------- ----------- ----------- ------------ -----------
888 1,459,582 NA NA NA NA
11,963 31,363 NA NA NA NA
(233,430) (1,411,936) NA NA NA NA
---------- ----------- ----------- ----------- ------------ -----------
(220,579) 79,009 NA NA NA NA
---------- ----------- ----------- ----------- ------------ -----------
873,188 2,105,854 9,304,584 1,901,559 48,959,325 54,954,779
30,964 27,284 45,108 24,505 275,107 225,214
(82,961) (961,053) (411,200) (271,557) (9,269,668) (2,200,098)
---------- ----------- ----------- ----------- ------------ -----------
821,191 1,172,085 8,938,492 1,654,507 39,964,764 52,979,895
---------- ----------- ----------- ----------- ------------ -----------
3,949,382 38,065,737 NA NA NA NA
117,548 170,259 NA NA NA NA
(2,302,230) (23,137,105) NA NA NA NA
---------- ----------- ----------- ----------- ------------ -----------
1,764,700 15,098,891 NA NA NA NA
---------- ----------- ----------- ----------- ------------ -----------
66,132 0 26,694,325 629,117 265,834,345 128,536,569
38 63 161,713 3,650 1,602,784 1,460,049
0 0 (6,931,237) 0 (77,814,381) (36,362,966)
---------- ----------- ----------- ----------- ------------ -----------
66,170 63 19,924,801 632,767 189,622,748 93,633,652
---------- ----------- ----------- ----------- ------------ -----------
5,725,417 10,417,406 77,777,546 58,628,406 195,546,412 256,603,741
756,422 1,138,543 1,686,315 2,968,755 2,259,529 6,589,170
(3,758,913) (10,029,014) (16,957,702) (38,333,262) (131,191,270) (141,084,300)
---------- ----------- ----------- ----------- ------------ -----------
2,722,926 1,526,935 62,506,159 23,263,899 66,614,671 122,108,611
---------- ----------- ----------- ----------- ------------ -----------
12,246,372 30,553,884 133,925,398 39,583,485 650,699,821 711,430,487
========== =========== =========== =========== ============ ===========
110 Wells Fargo Advantage Municipal Income Funds
Statements of Changes in Net Assets
WISCONSIN TAX-FREE FUND
---------------------------------
For the
Six Months Ended For the
December 31, 2009 Year Ended
(Unaudited) June 30, 2009
----------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets ................................................................... $104,699,744 $ 93,584,166
OPERATIONS
Net investment income .................................................................. 1,686,244 3,493,773
Net realized gain (loss) on investments ................................................ 581,355 (34,265)
Net change in unrealized appreciation (depreciation) of investments .................... 1,950,616 596,119
------------ ------------
Net increase in net assets resulting from operations ...................................... 4,218,215 4,055,627
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ............................................................................. (90,546) (131,889)
Class C ............................................................................. (98,812) (179,709)
Investor Class ...................................................................... (1,490,624) (3,182,177)
Net realized gains
Class A ............................................................................. (68,605) 0
Class C ............................................................................. (101,767) 0
Investor Class ...................................................................... (1,091,354) 0
------------ ------------
Total distributions to shareholders ....................................................... (2,941,708) (3,493,775)
------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A .................................................... 2,145,262 7,484,787
Reinvestment of distributions - Class A ................................................ 147,952 128,558
Cost of shares redeemed - Class A ...................................................... (990,147) (2,869,513)
------------ ------------
Net increase in net assets resulting from capital share transactions - Class A ......... 1,303,067 4,743,832
------------ ------------
Proceeds from shares sold - Class C .................................................... 3,132,153 2,885,823
Reinvestment of distributions - Class C ................................................ 170,977 162,324
Cost of shares redeemed - Class C ...................................................... (959,919) (700,656)
------------ ------------
Net increase in net assets resulting from capital share transactions - Class C ......... 2,343,211 2,347,491
------------ ------------
Proceeds from shares sold - Investor Class ............................................. 20,377,988 26,181,698
Reinvestment of distributions - Investor Class ......................................... 2,089,124 2,588,795
Cost of shares redeemed - Investor Class ............................................... (12,467,661) (25,308,090)
------------ ------------
Net increase in net assets resulting from capital share transactions - Investor
Class ............................................................................... 9,999,451 3,462,403
------------ ------------
Net increase in net assets resulting from capital share transactions - Total .............. 13,645,729 10,553,726
------------ ------------
NET INCREASE IN NET ASSETS ................................................................ 14,922,236 11,115,578
============ ============
ENDING NET ASSETS ......................................................................... $119,621,980 $104,699,744
============ ============
Ending balance of undistributed net investment income ..................................... $ (5,757) $ (12,019)
------------ ------------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 111
Statements of Changes in Net Assets
WISCONSIN TAX-FREE FUND
---------------------------------
For the
Six Months Ended For the
December 31, 2009 Year Ended
(Unaudited) June 30, 2009
----------------- -------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .................................................................. 201,651 724,128
Shares issued in reinvestment of distributions - Class A ............................... 13,940 12,538
Shares redeemed - Class A .............................................................. (92,965) (278,648)
---------- ----------
Net increase in shares outstanding - Class A ........................................... 122,626 458,018
---------- ----------
Shares sold - Class C .................................................................. 295,311 280,287
Shares issued in reinvestment of distributions - Class C ............................... 16,114 15,840
Shares redeemed - Class C .............................................................. (90,262) (68,479)
---------- ----------
Net increase in shares outstanding - Class C ........................................... 221,163 227,648
---------- ----------
Shares sold - Investor Class ........................................................... 1,918,857 2,558,453
Shares issued in reinvestment of distributions - Investor Class ........................ 196,830 252,680
Shares redeemed - Investor Class ....................................................... (1,172,720) (2,484,683)
---------- ----------
Net increase in shares outstanding - Administrator Class ............................... 942,967 326,450
---------- ----------
NET INCREASE IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .............. 1,286,756 1,012,116
========== ==========
112 Wells Fargo Advantage Municipal Income 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
--------- ------------- -------------- -------------
INTERMEDIATE TAX/AMT-FREE FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.21 0.19 0.49 (0.19)
July 1, 2008 to June 30, 2009 .................. $10.53 0.44 (0.31) (0.44)
August 1, 2007(4) to June 30, 2008 ............. $10.65 0.40 (0.10) (0.40)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.21 0.15 0.49 (0.15)
July 1, 2008 to June 30, 2009 .................. $10.53 0.36 (0.31) (0.36)
August 1, 2007(4) to June 30, 2008 ............. $10.65 0.33 (0.10) (0.33)
Administrator Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.21 0.20 0.50 (0.20)
July 1, 2008 to June 30, 2009 .................. $10.53 0.45 (0.31) (0.45)
March 31, 2008(4) to June 30, 2008 ............. $10.56 0.11 (0.03) (0.11)
Institutional Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.22 0.21 0.49 (0.21)
July 1, 2008 to June 30, 2009 .................. $10.53 0.47 (0.30) (0.47)
March 31, 2008(4) to June 30, 2008 ............. $10.56 0.12 (0.02) (0.12)
Investor Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.20 0.19 0.50 (0.19)
July 1, 2008 to June 30, 2009 .................. $10.53 0.43 (0.32) (0.43)
July 1, 2007 to June 30, 2008 .................. $10.60 0.44 (0.05) (0.44)
July 1, 2006 to June 30, 2007 .................. $10.55 0.39 0.07 (0.39)
July 1, 2005 to June 30, 2006 .................. $10.81 0.37 (0.24) (0.37)
November 1, 2004 to June 30, 2005(3) ........... $11.02 0.24 0.03 (0.24)
November 1, 2003 to October 31, 2004 ........... $10.78 0.39 0.29 (0.39)
MUNICIPAL BOND FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 8.74 0.21 0.68 (0.21)
July 1, 2008 to June 30, 2009 .................. $ 9.21 0.45 (0.47) (0.45)
July 1, 2007 to June 30, 2008 .................. $ 9.50 0.42 (0.29) (0.42)
July 1, 2006 to June 30, 2007 .................. $ 9.41 0.40 0.11 (0.40)
July 1, 2005 to June 30, 2006 .................. $ 9.60 0.40 (0.19) (0.40)
April 11, 2005(4) to June 30, 2005 ............. $ 9.43 0.09 0.17 (0.09)
Class B
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 8.72 0.18 0.70 (0.18)
July 1, 2008 to June 30, 2009 .................. $ 9.21 0.38 (0.49) (0.38)
July 1, 2007 to June 30, 2008 .................. $ 9.50 0.35 (0.29) (0.35)
July 1, 2006 to June 30, 2007 .................. $ 9.41 0.32 0.11 (0.32)
July 1, 2005 to June 30, 2006 .................. $ 9.60 0.33 (0.19) (0.33)
April 11, 20054 to June 30, 2005 ............... $ 9.43 0.08 0.17 (0.08)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 8.74 0.18 0.68 (0.18)
July 1, 2008 to June 30, 2009 .................. $ 9.21 0.38 (0.47) (0.38)
July 1, 2007 to June 30, 2008 .................. $ 9.50 0.35 (0.29) (0.35)
July 1, 2006 to June 30, 2007 .................. $ 9.41 0.32 0.11 (0.32)
July 1, 2005 to June 30, 2006 .................. $ 9.60 0.33 (0.19) (0.33)
April 11, 2005(4) to June 30, 2005 ............. $ 9.43 0.08 0.17 (0.08)
- ----------
(1.) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods of less than one year are not
annualized.
(2.) 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.
(3.) In 2005, the Fund changed its fiscal year-end from October 31 to June 30.
(4.) Commencement of class operations.
(5.) Amount is less than $0.005.
(6.) On June 20, 2008 Advisor Class was renamed to Class A.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 113
Financial Highlights
Ratio to Average
Net Assets (Annualized)
------------------------------
Distributions Ending Net
from Net Net Asset Investment Portfolio Net Assets at
Realized Value Per Income Gross Net Total Turnover End of Period
Gains Share (Loss) Expenses Expenses Return(1) Rate(2) (000's omitted)
- ------------- --------- ---------- -------- -------- --------- --------- ---------------
0.00 $10.70 3.73% 0.87% 0.70% 6.73% 39% $143,598
(0.01) $10.21 4.27% 0.90% 0.70% 1.33% 92% $124,317
(0.02) $10.53 4.13% 0.96% 0.70% 2.86% 98% $ 30,506
0.00 $10.70 2.89% 1.62% 1.45% 6.33% 39% $ 17,338
(0.01) $10.21 3.51% 1.63% 1.45% 0.56% 92% $ 9,603
(0.02) $10.53 3.31% 1.74% 1.45% 2.14% 98% $ 3,329
0.00 $10.71 3.70% 0.79% 0.60% 6.89% 39% $ 97,893
(0.01) $10.21 4.40% 0.78% 0.60% 1.43% 92% $ 13,486
0.00 $10.53 4.31% 0.85% 0.60% 0.80% 98% $ 10,834
0.00 $10.71 3.98% 0.53% 0.42% 6.88% 39% $ 15,605
(0.01) $10.22 4.48% 0.56% 0.42% 1.62% 92% $ 6,347
0.00 $10.54 4.46% 0.58% 0.44% 0.87% 98% $ 10
0.00 $10.70 3.68% 0.92% 0.75% 6.81% 39% $470,398
(0.01) $10.20 4.24% 0.95% 0.75% 1.18% 92% $386,977
(0.02) $10.53 4.07% 1.16% 0.75% 3.67% 98% $460,702
(0.02) $10.60 3.66% 1.23% 0.75% 4.41% 78% $313,361
(0.02) $10.55 3.53% 1.32% 0.75% 1.22% 102% $ 90,623
(0.24) $10.81 3.32% 1.21% 0.59% 2.56% 57% $ 71,870
(0.05) $11.02 3.60% 1.15% 0.49% 6.44% 95% $ 41,936
(0.07) $ 9.35 4.71% 0.86% 0.75% 10.02% 64% $302,350
0.00 $ 8.74 5.19% 0.89% 0.75% (0.04)% 152% $220,711
0.00 $ 9.21 4.44% 1.04% 0.82% 1.38% 144% $115,830
(0.02) $ 9.50 4.11% 1.07% 0.85% 5.38% 107% $127,411
0.00 $ 9.41 4.20% 1.08% 0.85% 2.20% 136% $134,850
0.00 $ 9.60 4.48% 1.08% 0.85% 2.82% 68% $141,868
(0.07) $ 9.35 4.02% 1.62% 1.50% 9.61% 64% $ 4,837
0.00 $ 8.72 4.40% 1.64% 1.50% (1.01)% 152% $ 6,436
0.00 $ 9.21 3.67% 1.79% 1.57% 0.62% 144% $ 6,070
(0.02) $ 9.50 3.36% 1.82% 1.60% 4.59% 107% $ 8,642
0.00 $ 9.41 3.44% 1.83% 1.61% 1.43% 136% $ 12,366
0.00 $ 9.60 3.74% 1.83% 1.60% 2.65% 68% $ 22,680
(0.07) $ 9.35 3.89% 1.62% 1.50% 9.61% 64% $ 21,051
0.00 $ 8.74 4.44% 1.63% 1.50% (0.79)% 152% $ 12,509
0.00 $ 9.21 3.67% 1.77% 1.57% 0.62% 144% $ 2,384
(0.02) $ 9.50 3.36% 1.82% 1.60% 4.59% 107% $ 2,146
0.00 $ 9.41 3.45% 1.84% 1.61% 1.43% 136% $ 1,953
0.00 $ 9.60 3.73% 1.83% 1.60% 2.65% 68% $ 1,966
114 Wells Fargo Advantage Municipal Income 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
--------- ------------- -------------- -------------
MUNICIPAL BOND FUND (continued)
Administrator Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $8.73 0.22 0.69 (0.22)
July 1, 2008 to June 30, 2009 .................. $9.21 0.46 (0.48) (0.46)
July 1, 2007 to June 30, 2008 .................. $9.50 0.44 (0.29) (0.44)
July 1, 2006 to June 30, 2007 .................. $9.41 0.43 0.11 (0.43)
July 1, 2005 to June 30, 2006 .................. $9.60 0.43 (0.19) (0.43)
April 11, 2005(4) to June 30, 2005 ............... $9.43 0.10 0.17 (0.10)
Institutional Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $8.73 0.23 0.68 (0.23)
July 1, 2008 to June 30, 2009 .................. $9.21 0.47 (0.48) (0.47)
March 31, 2008(4) to June 30, 2008 ............... $9.19 0.11 0.02 (0.11)
Investor Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $8.74 0.21 0.68 (0.21)
July 1, 2008 to June 30, 2009 .................. $9.21 0.44 (0.47) (0.44)
July 1, 2007 to June 30, 2008 .................. $9.50 0.42 (0.29) (0.42)
July 1, 2006 to June 30, 2007 .................. $9.41 0.40 0.11 (0.40)
July 1, 2005 to June 30, 2006 .................. $9.60 0.40 (0.19) (0.40)
November 1, 2004 to June 30, 2005(3) ........... $9.47 0.27 0.13 (0.27)
November 1, 2003 to October 31, 2004 ........... $8.89 0.42 0.58 (0.42)
SHORT-TERM MUNICIPAL BOND FUND
Class A
July 18, 20085 to June 31, 2009 (Unaudited) .... $9.64 0.15 0.22 (0.15)
July 18, 20084 to June 30, 2009 ................ $9.70 0.38 (0.06) (0.38)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $9.64 0.11 0.22 (0.11)
July 1, 2008 to June 30, 2009 .................. $9.66 0.32 (0.02) (0.32)
July 1, 2007 to June 30, 2008 .................. $9.73 0.31 (0.07) (0.31)
July 1, 2006 to June 30, 2007 .................. $9.73 0.28 0.00 (0.28)
July 1, 2005 to June 30, 2006 .................. $9.82 0.24 (0.09) (0.24)
November 1, 2004 to June 30, 2005(3) ........... $9.84 0.13 (0.02) (0.13)
November 1, 2003 to October 31, 2004 ........... $9.83 0.19 0.01 (0.19)
Institutional Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $9.66 0.16 0.22 (0.16)
July 1, 2008 to June 30, 2009 .................. $9.68 0.41 (0.02) (0.41)
March 31, 2008(4) to June 30, 2008 ............. $9.72 0.10 (0.04) (0.10)
Investor Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $9.65 0.15 0.22 (0.15)
July 1, 2008 to June 30, 2009 .................. $9.67 0.39 (0.02) (0.39)
July 1, 2007 to June 30, 2008 .................. $9.74 0.40 (0.07) (0.40)
July 1, 2006 to June 30, 2007 .................. $9.74 0.36 0.00 (0.36)
July 1, 2005 to June 30, 2006 .................. $9.83 0.33 (0.09) (0.33)
November 1, 2004 to June 30, 2005(3) ........... $9.85 0.20 (0.02) (0.20)
November 1, 2003 to October 31, 2004 ........... $9.83 0.31 0.02 (0.31)
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) .. $4.78 0.05 0.03 (0.05)
July 1, 2008 to June 30, 2009 .................. $4.75 0.20 0.03 (0.20)
July 1, 2007(4) to June 30, 2008(6) ............ $4.76 0.20 (0.01) (0.20)
July 1, 2006 to June 30, 2007 .................. $4.76 0.17 0.00 (0.17)
July 1, 2005 to June 30, 2006 .................. $4.77 0.14 (0.01) (0.14)
November 1, 2004 to June 30, 2005(3) ........... $4.83 0.07 (0.06) (0.07)
November 1, 2003 to October 31, 2004(6) ........ $4.87 0.08 (0.04) (0.08)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $4.78 0.03 0.03 (0.03)
July 1, 2008 to June 30, 2009 .................. $4.76 0.16 0.02 (0.16)
March 31, 2008(4) to June 30, 2008 ............. $4.75 0.04 0.01 (0.04)
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 115
Financial Highlights
Ratio to Average
Net Assets (Annualized)
------------------------------
Distributions Ending Net
from Net Net Asset Investment Portfolio Net Assets at
Realized Value Per Income Gross Net Total Turnover End of Period
Gains Share (Loss) Expenses Expenses Return(1) Rate(2) (000's omitted)
- ------------- --------- ---------- -------- -------- --------- --------- ---------------
(0.07) $9.35 4.89% 0.79% 0.60% 10.11% 64% $ 184,800
0.00 $8.73 5.34% 0.81% 0.60% 0.00% 152% $ 157,287
0.00 $9.21 4.71% 0.87% 0.56% 1.65% 144% $ 26,793
(0.02) $9.50 4.48% 0.89% 0.48% 5.77% 107% $ 15,926
0.00 $9.41 4.57% 0.90% 0.48% 2.57% 136% $ 16,136
0.00 $9.60 4.87% 0.90% 0.46% 2.90% 68% $ 17,821
(0.07) $9.34 4.72% 0.52% 0.49% 10.20% 64% $ 629
0.00 $8.73 5.50% 0.51% 0.42% 0.17% 152% $ 10
0.00 $9.21 5.02% 0.56% 0.44% 1.45% 144% $ 10
(0.07) $9.35 4.69% 0.92% 0.80% 10.00% 64% $ 291,823
0.00 $8.74 5.12% 0.94% 0.80% (0.09)% 152% $ 249,015
0.00 $9.21 4.46% 1.16% 0.80% 1.41% 144% $ 248,426
(0.02) $9.50 4.16% 1.24% 0.80% 5.43% 107% $ 248,692
0.00 $9.41 4.25% 1.25% 0.80% 2.25% 136% $ 200,297
0.00 $9.60 4.32% 0.98% 0.80% 4.31% 68% $ 201,608
0.00 $9.47 4.72% 0.84% 0.81% 11.52% 100% $ 185,717
0.00 $9.86 2.98% 0.82% 0.60% 3.89% 48% $ 557,893
0.00 $9.64 4.14% 0.87% 0.60% 3.39% 101% $ 135,320
0.00 $9.86 2.15% 1.57% 1.35% 3.48% 48% $ 110,209
0.00 $9.64 3.36% 1.61% 1.36% 3.25% 101% $ 21,599
0.00 $9.66 3.15% 1.71% 1.55% 2.50% 94% $ 5,656
0.00 $9.73 2.81% 1.73% 1.55% 2.85% 126% $ 2,847
0.00 $9.73 2.46% 1.74% 1.58% 1.57% 129% $ 4,965
0.00(5) $9.82 1.98% 1.78% 1.73% 1.16% 75% $ 8,228
0.00 $9.84 1.96% 1.82% 1.79% 2.08% 69% $ 6,982
0.00 $9.88 3.10% 0.47% 0.40% 3.99% 48% $ 203,023
0.00 $9.66 4.15% 0.55% 0.40% 4.21% 101% $ 6,123
0.00 $9.68 4.35% 0.54% 0.41% 0.66% 94% $ 10
0.00 $9.87 3.05% 0.88% 0.66% 3.85% 48% $1,658,835
0.00 $9.65 4.10% 0.92% 0.66% 3.98% 101% $1,019,054
0.00 $9.67 4.06% 1.10% 0.66% 3.43% 94% $ 796,199
0.00 $9.74 3.70% 1.15% 0.66% 3.76% 126% $ 674,631
0.00 $9.74 3.40% 1.15% 0.66% 2.49% 129% $ 637,443
0.00(5) $9.83 3.07% 0.87% 0.66% 1.87% 75% $ 657,403
0.00 $9.85 3.12% 0.69% 0.66% 3.37% 69% $ 484,450
0.00 $4.81 1.80% 0.79% 0.67% 1.58% 64% $3,947,339
0.00 $4.78 3.77% 0.84% 0.67% 5.00% 186% $2,227,869
0.00 $4.75 4.14% 0.99% 0.70% 4.10% 191% $ 112,660
0.00 $4.76 3.52% 1.06% 0.72% 3.59% 123% $ 9,670
0.00 $4.76 2.98% 1.05% 0.76% 2.81% 128% $ 13,317
0.00 $4.77 2.23% 1.14% 1.04% 0.27% 47% $ 19,540
0.00 $4.83 1.72% 1.17% 1.12% 0.90% 72% $ 39,623
0.00 $4.81 1.04% 1.54% 1.42% 1.20% 64% $ 449,706
0.00 $4.78 2.79% 1.58% 1.42% 3.95% 186% $ 255,585
0.00 $4.76 2.93% 1.63% 1.42% 1.00% 191% $ 2,276
116 Wells Fargo Advantage Municipal Income 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
--------- ------------- -------------- -------------
ULTRA SHORT-TERM MUNICIPAL INCOME FUND (continued)
Institutional Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 4.78 0.05 0.03 (0.05)
July 1, 2008 to June 30, 2009 .................. $ 4.75 0.22 0.03 (0.22)
July 1, 2007 to June 30, 2008 .................. $ 4.76 0.22 (0.01) (0.22)
July 1, 2006 to June 30, 2007 .................. $ 4.76 0.19 0.00 (0.19)
July 1, 2005 to June 30, 2006 .................. $ 4.77 0.16 (0.01) (0.16)
November 1, 2004 to June 30, 2005(3) ........... $ 4.83 0.09 (0.06) (0.09)
November 1, 2003 to October 31, 2004 ........... $ 4.87 0.12 (0.04) (0.12)
Investor Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $ 4.78 0.04 0.03 (0.04)
July 1, 2008 to June 30, 2009 .................. $ 4.75 0.20 0.03 (0.20)
July 1, 2007 to June 30, 2008 .................. $ 4.76 0.20 (0.01) (0.20)
July 1, 2006 to June 30, 2007 .................. $ 4.76 0.16 0.01 (0.17)
July 1, 2005 to June 30, 2006 .................. $ 4.77 0.14 (0.01) (0.14)
November 1, 2004 to June 30, 2005(3) ........... $ 4.83 0.08 (0.06) (0.08)
November 1, 2003 to October 31, 2004 ........... $ 4.87 0.10 (0.04) (0.10)
WISCONSIN TAX-FREE FUND
Class A
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.43 0.16 0.24 (0.16)
July 1, 2008 to June 30, 2009 .................. $10.37 0.38 0.06 (0.38)
March 31, 2008(4) to June 30, 2008 ............. $10.44 0.09 (0.07) (0.09)
Class C
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.43 0.11 0.24 (0.11)
July 1, 2008 to June 30, 2009 .................. $10.37 0.30 0.06 (0.30)
July 1, 2007 to June 30, 2008 .................. $10.44 0.30 (0.05) (0.30)
July 1, 2006 to June 30, 2007 .................. $10.38 0.30 0.11 (0.30)
July 1, 2005 to June 30, 2006 .................. $10.70 0.30 (0.29) (0.30)
November 1, 2004 to June 30, 2005(3) ........... $10.80 0.21 0.06 (0.21)
November 1, 2003 to October 31, 2004 ........... $10.69 0.32 0.16 (0.32)
Investor Class
July 1, 2009 to December 31, 2009 (Unaudited) .. $10.43 0.15 0.24 (0.15)
July 1, 2008 to June 30, 2009 .................. $10.37 0.37 0.06 (0.37)
July 1, 2007 to June 30, 2008 .................. $10.44 0.38 (0.05) (0.38)
July 1, 2006 to June 30, 2007 .................. $10.38 0.38 0.11 (0.38)
July 1, 2005 to June 30, 2006 .................. $10.70 0.38 (0.29) (0.38)
November 1, 2004 to June 30, 2005(3) ........... $10.80 0.28 0.06 (0.28)
November 1, 2003 to October 31, 2004 ........... $10.69 0.44 0.16 (0.44)
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Municipal Income Funds 117
Financial Highlights
Ratio to Average
Net Assets (Annualized)
------------------------------
Distributions Ending Net
from Net Net Asset Investment Portfolio Net Assets at
Realized Value Per Income Gross Net Total Turnover End of Period
Gains Share (Loss) Expenses Expenses Return(1) Rate(2) (000's omitted)
- ------------- --------- ---------- -------- -------- --------- --------- ---------------
0.00 $ 4.81 2.08% 0.44% 0.37% 1.74% 64% $1,458,418
0.00 $ 4.78 4.28% 0.50% 0.37% 5.32% 186% $ 542,964
0.00 $ 4.75 4.57% 0.61% 0.37% 4.47% 191% $ 95,113
0.00 $ 4.76 3.87% 0.61% 0.37% 3.95% 123% $ 80,326
0.00 $ 4.76 3.37% 0.59% 0.37% 3.20% 128% $ 91,622
0.00 $ 4.77 2.86% 0.47% 0.41% 0.67% 47% $ 144,860
0.00 $ 4.83 2.45% 0.40% 0.38% 1.65% 72% $ 289,641
0.00 $ 4.81 1.82% 0.83% 0.72% 1.56% 64% $1,663,939
0.00 $ 4.78 4.13% 0.90% 0.72% 4.96% 186% $1,334,323
0.00 $ 4.75 4.20% 1.16% 0.72% 4.10% 191% $ 746,639
0.00 $ 4.76 3.52% 1.23% 0.72% 3.59% 123% $ 340,682
0.00 $ 4.76 3.02% 1.22% 0.72% 2.84% 128% $ 419,465
0.00 $ 4.77 2.53% 0.90% 0.76% 0.44% 47% $ 556,121
0.00 $ 4.83 2.11% 0.75% 0.73% 1.30% 72% $ 881,337
(0.11) $10.56 2.99% 0.93% 0.70% 3.83% 36% $ 6,471
0.00 $10.43 3.71% 0.97% 0.68% 4.38% 126% $ 5,110
0.00 $10.37 3.34% 0.99% 0.70% 0.21% 102% $ 331
(0.11) $10.56 2.19% 1.69% 1.49% 3.42% 36% $ 9,960
0.00 $10.43 2.89% 1.73% 1.49% 3.54% 126% $ 7,528
(0.02) $10.37 2.82% 1.82% 1.49% 2.40% 102% $ 5,123
(0.05) $10.44 2.87% 1.88% 1.49% 3.99% 51% $ 3,730
(0.03) $10.38 2.86% 2.00% 1.50% 0.07% 111% $ 3,346
(0.16) $10.70 2.97% 2.07% 1.49% 2.60% 24% $ 2,583
(0.05) $10.80 3.00% 2.10% 1.50% 4.54% 17% $ 2,380
(0.11) $10.56 2.97% 0.99% 0.75% 3.81% 36% $ 103,191
0.00 $10.43 3.64% 1.05% 0.75% 4.31% 126% $ 92,061
(0.02) $10.37 3.57% 1.22% 0.75% 2.95% 102% $ 88,130
(0.05) $10.44 3.61% 1.30% 0.75% 4.77% 51% $ 68,745
(0.03) $10.38 3.62% 1.41% 0.75% 0.82% 111% $ 58,974
(0.16) $10.70 3.96% 1.22% 0.51% 3.26% 24% $ 53,648
(0.05) $10.80 4.09% 1.17% 0.40% 5.69% 17% $ 48,109
118 Wells Fargo Advantage Municipal Income Funds
Notes to Financial Statements
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is an open-end investment management
company registered under the Investment Company Act of 1940, as amended (the
"1940 Act"). These financial statements report on the following funds: Wells
Fargo Advantage Intermediate Tax/AMT-Free Fund (Intermediate Tax/AMT-Free
Fund"), Wells Fargo Advantage Municipal Bond Fund ("Municipal Bond Fund"), Wells
Fargo Advantage Short-Term Municipal Income Fund ("Short-Term Municipal Income
Fund"), Wells Fargo Advantage Ultra Short-Term Municipal Income Fund ("Ultra
Short-Term Municipal Income Fund"), and Wells Fargo Advantage Wisconsin
Tax-Free Fund ("Wisconsin Tax-Free Fund") (each, a "Fund", collectively, the
"Funds"). Each Fund is a diversified series of the Trust, a Delaware statutory
trust organized on November 8, 1999.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed
in the preparation of the financial statements of each Fund, are in conformity
with U.S. Generally Accepted Accounting Principles ("GAAP") which 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. Management has considered the circumstances under which the Funds
should recognize or make disclosures regarding events or transactions occurring
subsequent to the balance sheet date through February 26, 2010 which represents
the date the financial statements are issued. Adjustments or additional
disclosures, if any, have been included in these financial statements.
SECURITIES VALUATION
Certain fixed income securities with maturities exceeding 60 days are valued by
using a pricing service approved by the Trust's Board of Trustees. This service
uses market prices as quoted by an independent pricing service or by dealers in
these securities when, in the service's judgment, these prices are readily
available and are representative of the securities' fair values. For some
securities, such prices are not readily available. These securities will
generally be fair valued using the methods which may include consideration of
yields or prices of securities of comparable quality, coupon rate, maturity and
type of issue; indications as to values from dealers in securities, trading
characteristics and general market conditions.
Debt securities of sufficient credit quality with original maturities of 60 days
or less, generally are valued at amortized cost which approximates fair value.
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 fair value.
Investments in open-end mutual funds are valued at net asset value.
Investments which are not valued using any of the methods discussed above, are
valued at their fair value, as determined by procedures established in good
faith and approved by the Board of Trustees.
The valuation techniques used by the Funds to measure fair value are consistent
with the market approach, income approach and/or cost approach, where
applicable, for each security type.
WHEN-ISSUED TRANSACTIONS
Each Fund may purchase securities on a forward commitment or 'when-issued'
basis. A Fund records a when-issued transaction on the trade date and will
segregate assets to cover its obligation by confirming the availability of
qualifying assets having a value sufficient to make payment for the securities
purchased. Securities purchased on a when-issued basis are marked-to-market
daily and the Fund begins earning interest on the settlement date. Losses may
arise due to changes in the market value of the underlying securities or if the
counterparty does not perform under the contract.
FUTURES CONTRACTS
Certain Funds may be subject to interest rate risk in the normal course of
pursuing its investment objectives. The Funds may buy and sell futures contracts
in order to gain exposure to, or protect against changes in, security values and
interest rates. The primary risks associated with the use of futures contracts
are the imperfect correlation between changes in market values of securities
held by the Fund and the prices of futures contracts, and the possibility of an
illiquid market.
Wells Fargo Advantage Municipal Income Funds 119
Notes to Financial Statements
Futures contracts are valued based upon their quoted daily settlement prices.
The aggregate principal amounts of the contracts are not recorded in the
financial statements. Fluctuations in the value of the contracts are recorded in
the Statement of Assets and Liabilities as an asset or liability and in the
Statement of Operations as unrealized gains or losses until the contracts are
closed, at which point they are recorded as net realized gains or losses on
futures contracts. With futures contracts, there is minimal counterparty risk to
the Fund since futures are exchange traded and the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures against
default.
MUNICIPAL MARKET DATA RATE LOCKS
The Funds may be subject to interest rate risk in the normal course of pursuing
its investment objectives. A Fund may purchase and sell Municipal Market Data
Rate Locks ("MMD Rate Locks"). A Fund will ordinarily use these transactions as
a hedge or for duration or risk management although it is permitted to enter
into them to enhance income or gain or to increase the Fund's yield, for
example, during periods of steep interest rate yield curves (i.e., wide
differences between short term and long term interest rates). An MMD Rate Lock
permits a Fund to lock in a specified municipal interest rate for a portion of
its portfolio to preserve a return on a particular investment or a portion of
its portfolio as a duration management technique or to protect against any
increase in the price of securities to be purchased at a later date. An MMD Rate
Lock is a contract between a Fund and an MMD Rate Lock provider pursuant to
which the parties agree to make payments to each other on a notional amount,
contingent upon whether the Municipal Market Data AAA General Obligation Scale
is above or below a specified level on the expiration date of the contract. For
example, if a Fund buys an MMD Rate Lock and the Municipal Market Data AAA
General Obligation Scale is below the specified level on the expiration date,
the counterparty to the contract will make a payment to a Fund equal to the
specified level minus the actual level, multiplied by the notional amount of the
contract. If the Municipal Market Data AAA General Obligation Scale is above the
specified level on the expiration date, a Fund will make a payment to the
counterparty equal to the actual level minus the specified level, multiplied by
the notional amount of the contract. In connection with investments in MMD Rate
Locks, there is a risk that municipal yields will move in the opposite direction
than anticipated by a Fund, which would cause the Fund to make payments to its
counterparty in the transaction that could adversely affect the Fund's
performance. The Fund could be exposed to risks if the counterparty defaults on
its obligation to perform, or if there are unfavorable changes in the
fluctuation of interest rates or in the price of the underlying index. The
Fund's maximum risk of loss from counterparty risk is the fair value of the
contract. This risk is mitigated by having a master netting arrangement between
the Fund and the counterparty and by having the counterparty post collateral to
cover the Fund's exposure to the counterparty.
CREDIT DEFAULT SWAPS
Certain Funds may be subject to credit risk in the normal course of pursuing its
investment objectives. The Fund may enter into credit default swap contracts for
hedging or speculative purposes to provide or receive a measure of protection
against default on a referenced entity, obligation or index or for investment
gains. Credit default swaps involve an exchange of a stream of payments for
protection against the loss in value of an underlying security or index. Under
the terms of the swap, one party acts as a guarantor (referred to as the seller
of protection) and receives a periodic stream of payments, provided that there
is no credit event, from another party (referred to as the buyer of protection)
that is a fixed percentage applied to a notional principal amount over the term
of the swap. An index credit default swap references all the names in the index,
and if a credit event is triggered, the credit event is settled based on that
name's weight in the index. A credit event includes bankruptcy, failure to pay,
obligation default, obligation acceleration, repudiation/moratorium, and
restructuring. The Fund may enter into credit default swaps as either the seller
of protection or the buyer of protection. As the seller of protection, the Fund
is subject to investment exposure on the notional amount of the swap and has
assumed the risk of default of the underlying security or index. As the buyer of
protection, the Fund could be exposed to risks if the seller of the protection
defaults on its obligation to perform, or if there are unfavorable changes in
the fluctuation of interest rates or in the price of the underlying security or
index. The maximum potential amount of future payments (undiscounted) that the
Fund as the seller of protection could be required to make under the credit
default swap contract would be an amount equal to the notional amount of the
swap contract. The Fund's maximum risk of loss from counterparty risk, either as
the protection seller or as the protection buyer, is the fair value of the
contract. This risk is mitigated by having a master netting arrangement between
the Fund and the counterparty and by having the counterparty post collateral to
cover the Fund's exposure to the counterparty.
120 Wells Fargo Advantage Municipal Income Funds
Notes to Financial Statements
If the Fund is the seller of protection and a credit event occurs, as defined
under the terms of that particular swap agreement, the Fund will pay to the
buyer of protection the notional amount of the swap and take delivery of the
referenced obligation or underlying securities comprising the referenced index.
If the Fund is the buyer of protection and a credit event occurs, as defined
under the terms of that particular swap agreement, the Fund will receive from
the seller of protection the notional amount of the swap and deliver the
referenced obligation or underlying securities comprising the referenced index.
The value of the swap contract is marked-to-market daily based on quotations
from an independent pricing service or market makers and any change in value is
recorded as an unrealized gain or loss. Periodic payments made or received are
recorded as realized gains or losses. In addition, payments received or made as
a result of a credit event or termination of the contract are recognized as
realized gains or losses.
Certain credit default swap contracts entered into by the Fund provide for
conditions that result in events of default or termination that enable the
counterparty to the agreement to cause an early termination of the transactions
under those agreements. Any election by the counterparty to terminate early may
impact the amounts reported on the financial statements.
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 based on the effective interest method. To the extent debt
obligations are placed on non-accrual status, any related interest income may be
reduced by writing off interest receivables when the collection of all or a
portion of interest has become doubtful based on consistently applied
procedures. If the issuer subsequently resumes interest payments or when the
collectability of interest is reasonably assured, the debt obligation is removed
from non-accrual status.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
monthly. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
FEDERAL AND OTHER 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 distributing substantially all of its investment company
taxable and tax-exempt 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.
Each Fund's income and federal excise tax returns and all financial records
supporting those returns for the prior three fiscal years are subject to
examination by the federal and Delaware revenue authorities.
At June 30, 2009, estimated net capital loss carryforwards, which are available
to offset future net realized capital gains, were as follows:
Expiration
---------------------------------------------------------------------------------------
2010 2011 2013 2014 2015 2016 2017
----------- ---------- ---------- ----------- ---------- ------- ----------
INTERMEDIATE TAX/AMT-FREE FUND $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $3,583,534
SHORT-TERM MUNICIPAL BOND FUND 1,445,980 0 3,449,790 990,974 66,802 52,282 4,186,772
ULTRA SHORT-TERM MUNICIPAL INCOME FUND 31,152,609 2,733,995 0 25,349,055 2,105,019 0 0
Wells Fargo Advantage Municipal Income Funds 121
Notes to Financial Statements
At June 30, 2009, current year deferred post-October capital losses, which will
be treated as realized for tax purposes on the first day of the succeeding year
were:
Deferred
Post-October
Capital Loss
------------
INTERMEDIATE TAX/AMT-FREE FUND $5,466,499
MUNICIPAL BOND FUND 9,099,464
SHORT-TERM MUNICIPAL BOND FUND 868,625
ULTRA SHORT-TERM MUNICIPAL INCOME FUND 2,189,862
WISCONSIN TAX-FREE FUND 1,330,324
CLASS ALLOCATIONS
The separate classes of shares offered by each Fund differ principally in
applicable sales charges, 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.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that
has established a fair value hierarchy based upon the various data inputs
utilized in determining the value of the Fund's investments. These inputs are
summarized into three broad levels as follows:
- - Level 1 - quoted prices in active markets for identical investments
- - Level 2 - other significant observable inputs (including quoted prices for
similar investments, interest rates, prepayment speeds, credit risk, etc.)
- - Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in these securities.
The following is a summary of the inputs used as of December 31, 2009 in valuing
the Funds' investments in securities:
Significant Other Significant
Quoted Price Observable Inputs Unobservable Inputs Total Fair Value
INVESTMENTS IN SECURITIES (Level 1) (Level 2) (Level 3) as of 12/31/2009
- ------------------------- ------------ ----------------- ------------------- ----------------
INTERMEDIATE TAX/AMT-FREE FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $727,452,963 $ 7,531,059 $734,984,022
Short-term investments 10,403,145 0 0 10,403,145
----------- ------------ ----------- ------------
$10,403,145 $727,452,963 $ 7,531,059 $745,387,167
----------- ------------ ----------- ------------
MUNICIPAL BOND FUND
Debt securities issued by U.S. Treasury
and U.S. government agencies $ 0 $ 199,971 $ 0 $ 199,971
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $745,513,705 $34,931,219 $780,444,924
Short-term investments 7,799,564 0 0 7,799,564
----------- ------------ ----------- ------------
$ 7,799,564 $745,713,676 $34,931,219 $788,444,459
122 Wells Fargo Advantage Municipal Income Funds
Notes to Financial Statements
Significant Other Significant
Quoted Price Observable Inputs Unobservable Inputs Total Fair Value
INVESTMENTS IN SECURITIES (Level 1) (Level 2) (Level 3) as of 12/31/2009
- ------------------------- ------------ ----------------- ------------------- ----------------
SHORT-TERM MUNICIPAL BOND FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $2,415,573,164 $ 53,978,494 $2,469,551,658
Short-term investments 120,250,311 0 0 120,250,311
------------ -------------- ------------ --------------
$120,250,311 $2,415,573,164 $ 53,978,494 $2,589,801,969
------------ -------------- ------------ --------------
ULTRA SHORT-TERM MUNICIPAL INCOME FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $7,306,199,916 $187,140,963 $7,493,340,879
Short-term investments 20,772,132 0 0 20,772,132
------------ -------------- ------------ --------------
$ 20,772,132 $7,306,199,916 $187,140,963 $7,514,113,011
------------ -------------- ------------ --------------
WISCONSIN TAX-FREE FUND
Debt securities issued by states in the U.S.
and its political subdivisions $ 0 $ 116,305,117 $ 2,845,000 $ 119,150,117
Further details on the major security types listed above for each fund can be
found in the Portfolio of Investments.
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining value:
Intermediate Short-Term Ultra Short-Term
Tax/AMT-Free Municipal Bond Municipal Bond Municipal Income Wisconsin
Fund Fund Fund Fund Tax-Free Fund
------------ -------------- -------------- ---------------- -------------
DEBT SECURITIES ISSUED BY STATES IN THE U.S.
AND ITS POLITICAL SUBDIVISIONS
Balance as of 06/30/2009 $1,521,500 $ 1,878,500 $ 3,400,000 $ 23,174,000 $1,870,000
Accrued discounts (premiums) 28,166 106,775 95,388 342,552 29,958
Realized gain (loss) 0 0 10,191 111,691 0
Change in unrealized appreciation
(depreciation) 71,853 15,225 288,633 (314,302) (29,958)
Net purchases (sales) 5,909,540 31,290,500 34,471,348 48,170,548 975,000
Net transfer in (out) of Level 3 0 1,640,219 15,712,934 115,656,474 0
---------- ----------- ----------- ------------ ----------
BALANCE AS OF 12/31/2009 $7,531,059 $34,931,219 $53,978,494 $187,140,963 $2,845,000
---------- ----------- ----------- ------------ ----------
Change in unrealized appreciation
(depreciation) relating to securities
held at the end of reporting period $ 71,853 $ 15,225 $ 288,633 $ (1,601,662) $ (29,958)
4. TRANSACTIONS WITH AFFILIATES AND OTHER 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
sub-adviser, who is responsible for day-to-day portfolio management.
Wells Fargo Advantage Municipal Income Funds 123
Notes to Financial Statements
Pursuant to the contract, Funds Management is entitled to receive an advisory
fee for its services as adviser at the following annual rates:
Advisory Fees
Average Daily (% of Average
Net Assets Daily Net Assets)
------------- -----------------
First $550 million 0.350
Next $500 million 0.325
Next $2 billion 0.300
Next $2 billion 0.275
Over $5 billion 0.250
Wells Capital Management Incorporated, an affiliate of Funds Management and
indirect wholly owned subsidiary of Wells Fargo & Company, is the sub-adviser to
the Funds.
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds Management.
Under this Agreement, for providing administrative services, which includes
paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive from each Fund 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 0.18
Administration Class 0.10
Institutional Class 0.08
Investor Class 0.23
Funds Management has contractually waived and/or reimbursed advisory and
administration fees during the year ended December 31, 2009, to the extent
necessary to maintain certain net operating expense ratios for the Funds.
Expenses were waived and/or reimbursed by Funds Management proportionately from
all classes, first from advisory fees, and then from any class specific
expenses, if applicable.
CUSTODY AND FUND ACCOUNTING FEES
The Funds have entered into a contract with State Street Bank and Trust Company
("State Street"), whereby State Street is responsible for providing custody
services and fund accounting services to the Funds (the "Custody and Fund
Accounting Agreement.") Pursuant to the Custody and Fund Accounting Agreement,
State Street is entitled to an annual asset-based fee for domestic and global
custody services for the Funds. Also pursuant to the Custody and Fund Accounting
Agreement, State Street is entitled to receive annual asset-based fees for
providing fund accounting services to the Funds.
Prior to August 17, 2009, Wells Fargo Bank, N.A. was responsible for providing
custody services to the Funds and was entitled to a monthly fee for custody
services at an annual rate of 0.02% of the average daily net assets of each
Fund. PNC Global Investment Servicing ("PNC") served as fund accountant for the
Trust prior to August 17, 2009 and received an annual asset-based fee and an
annual fixed fee from each Fund. PNC was also reimbursed for all out-of-pocket
expenses reasonably incurred in providing these services.
124 Wells Fargo Advantage Municipal Income Funds
Notes to Financial Statements
DISTRIBUTION FEES
The Trust has adopted a Distribution 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, the principal underwriter of each Fund, at an annual rate of
0.75% of the average daily net assets of each class.
For the six months ended December 31, 2009, Wells Fargo Funds Distributor, LLC
received the following amounts in front end sales changes and contingent
deferred sales charges.
Front-end Sales Charges Contingent Defferred Sales Charges
Class A Class B Class C
----------------------- ---------------- ---------------
INTERMEDIATE TAX/AMT-FREE FUND $ 11,522,741 NA $ 1,824
MUNICIPAL BOND FUND 16,752,346 1,099 712
SHORT-TERM MUNICIPAL BOND FUND 114,518,707 NA 14,124
ULTRA SHORT-TERM MUNICIPAL INCOME FUND 145,796,867 NA 145,073
WISCONSIN TAX-FREE FUND 1,672,450 NA 617
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class B, Class C, Administrator Class and Investor
Class of each applicable Fund is charged a fee at an annual rate of 0.25% of the
average daily net assets of each respective class.
A portion of these total shareholder servicing fees were paid to affiliates of
Wells Fargo & Company.
5. 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 months ended December 31, 2009, were as
follows:
Purchases at Cost Sales Proceeds
----------------- --------------
INTERMEDIATE TAX/AMT-FREE FUND $ 420,030,359 $ 243,774,033
MUNICIPAL BOND FUND 539,864,157 456,206,248
SHORT-TERM MUNICIPAL BOND FUND 2,133,204,276 840,294,579
ULTRA SHORT-TERM MUNICIPAL INCOME FUND 7,411,097,430 3,857,082,469
WISCONSIN TAX-FREE FUND 54,385,307 41,344,399
6. DERIVATIVE TRANSACTIONS
During the six months ended December 31, 2009, the Intermediate Tax/AMT-Free
Fund, Municipal Bond Fund, and Short-Term Municipal Bond Fund entered into
futures contracts for the purpose of adjusting exposure to various asset
classes.
As of December 31, 2009, the Intermediate Tax/AMT-Free Fund, Municipal Bond
Fund, and Short-Term Municipal Bond Fund did not have any open futures contracts
but had average contract amounts of $2,296.333, $5,600,649 and $2,330,275,
respectively in futures contracts during the six months ended December 31, 2009.
The fair value, realized gains or losses and change in unrealized gains or
losses on derivative instruments are reflected in the appropriate financial
statements.
7. BANK BORROWINGS
The Trust and Wells Fargo Variable Trust (excluding the money market funds) are
parties to a $125,000,000 revolving credit agreement with State Street Bank and
Trust Company, whereby the Funds are permitted to use bank borrowings for
temporary or emergency purposes, such as to fund shareholder redemption
requests. Pursuant to the agreement entered into on September 8, 2009, interest
under the credit agreement is charged to each Fund based on a borrowing rate
equal to the higher of the Federal Funds rate in effect on that day plus 1.25%
or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, under
the credit agreement, the Funds pay an annual commitment fee equal to 0.15%
Wells Fargo Advantage Municipal Income Funds 125
Notes to Financial Statements
of the unused balance, which is allocated pro rata. Prior to September 8, 2009,
the Funds participated in a $150,000,000 revolving credit agreement with the
Bank of New York Mellon and paid interest at a rate equal to the Federal Funds
rate plus 0.60% and an annual commitment fee equal to 0.15% of the unused
balance, which was allocated on a pro rata basis. For the six months ended
December 31, 2009, there were no borrowings by the Funds under the agreement.
8. CONCENTRATION OF RISK
Wisconsin Tax-Free Fund invests a substantial portion of its assets in issuers
of municipal debt securities located in a single state, therefore, it may be
more affected by economic and political developments in that state or region
than would be a comparable general tax-exempt mutual fund.
9. INDEMNIFICATION
Under the Trust's organizational documents, the 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.
10. SUBSEQUENT EVENT
In January 2010, the Financial Accounting Standards Board ("FASB") issued an
Accounting Standards Update on "IMPROVING DISCLOSURES ABOUT FAIR VALUE
MEASUREMENTS" which will require reporting entities to make new disclosures
about the amount and reasons for significant transfers into and out of Level 1
and Level 2 fair value measurements, the input and valuation techniques used to
measure fair value for both recurring and nonrecurring fair value measurements
and information on purchases, sales, issuances, and settlements on a gross basis
in the reconciliation of Level 3 fair value measurements. Except for the
detailed Level 3 roll forward disclosures, the disclosures are effective for
annual and interim reporting periods beginning after December 15, 2009. The new
disclosures about purchases, sales, issuances, and settlements in the roll
forward activity for Level 3 fair value measurements are effective for interim
and annual reporting periods beginning after December 15, 2010. Management of
the Fund is currently evaluating the implications of this Accounting Standards
Update and any impacts on the financial statements.
126 Wells Fargo Advantage Municipal Income Funds
Other Information
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, by calling 1-800-222-8222, visiting our Web site at
www.wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge on the Funds' Web site at www.wellsfargo.com/advantagefunds or by
visiting the SEC Web site at www.sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Fund, 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 Fund is publicly available on the Funds'Web site on a monthly, seven-day or
more delayed basis. Each Fund files its complete schedule of portfolio holdings
with the SEC for the first and third quarters of each fiscal year on Form N-Q,
which is available without charge by visiting the SEC Web site at WWW.SEC.GOV.
In addition, each Fund's Form N-Q may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900.
Information about the Public Reference Room may be obtained by calling
1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees (the
"Trustees") of the Wells Fargo Funds Trust (the "Trust") and Officers of the
Trust. This table should be read in conjunction with the Prospectus and the
Statement of Additional Information1 of each Fund. Each of the Trustees and
Officers listed below acts in identical capacities for each of the 133 funds
comprising the Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust
(collectively the "Fund Complex"), except that the person occupying the office
of Treasurer varies for specified Funds. All of the Trustees are also Members of
the Audit and Governance Committees of each Trust in the Fund Complex. The
mailing address of each Trustee and Officer is 525 Market Street, 12th Floor,
San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term,
however, each Trustee serves such term until reaching the mandatory retirement
age established by the Trustees.
INDEPENDENT TRUSTEES
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- ------------------ ------------------------- ------------------------------------------------------- -------------------
Peter G. Gordon Trustee, since 1998; Co-Founder, Chairman, President and CEO of Crystal None
67 Chairman, since 2005 Geyser. Water Company.
(Lead Trustee since 2001)
Isaiah Harris, Jr. Advisory Board Retired. Prior thereto, President and CEO of BellSouth CIGNA Corporation;
57 Trustee, since 2008 Advertising and Publishing Corp from 2005 to 2007, Deluxe Corporation
President and CEO of BellSouth Enterprises from 2004 to
2005 and President of BellSouth Consumer Services from
2000 to 2003. Currently a member of the Iowa State
University Foundation Board of Governors and a member
of the Advisory Board of Iowa State University School
of Business.
Judith M. Johnson Trustee, since 2008 Retired. Prior thereto, Chief Executive Officer and None
60 Chief Investment Officer of Minneapolis Employees
Retirement Fund from 1996 to 2008. Ms. Johnson is a
certified public accountant and a certified managerial
accountant.
David F. Larcker Advisory Board James Irvin Miller Professor of Accounting at the None
59 Trustee, since 2008 Graduate School of Business, Stanford University,
Director of Corporate Governance Research Program and
Co-Director of The Rock Center for Corporate Governance
since 2006. From 2005 to 2008, Professor of Accounting
at the Graduate School of Business, Stanford
University. Prior thereto, Ernst & Young Professor of
Accounting at The Wharton School, University of
Pennsylvania from 1985 to 2005.
Wells Fargo Advantage Municipal Income Funds 127
Other Information
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- ------------------ ------------------------- ------------------------------------------------------- -------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, Wharton None
56 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
58 Foundation, a non-profit organization, since 2007 and
Senior Fellow at the Humphrey Institute Policy Forum at
the University of Minnesota since 1995. Member of the
Board of Trustees of NorthStar Education Finance, Inc.,
a non-profit organization, since 2007.
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke & Daniels. General None
69 Counsel of the Minneapolis Employees Retirement Fund
from 1984 to present.
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
50 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 None
49 Chief Legal Counsel, Funds Management, LLC since 2001. Vice President and
since 2003 Managing Senior Counsel of Wells Fargo Bank, N.A. since
1996.
Kasey Phillips(3) Treasurer, since 2009 Senior Vice President of Evergreen Investment None
38 Management Company, LLC since 2006 and currently the
Treasurer of the Evergreen Funds since 2005. Vice
President and Assistant Vice President of Evergreen
Investment Services, Inc. from 1999 to 2006.
David Berardi(4) Assistant Treasurer, Vice President of Evergreen Investment Management None
34 since 2009 Company, LLC since 2008. Assistant Vice President of
Evergreen Investment Services, Inc. from 2004 to 2008.
Manager of Fund Reporting and Control for Evergreen
Investment Management Company, LLC since 2004.
Jeremy DePalma(4) Assistant Treasurer, Senior Vice President of Evergreen Investment None
35 since 2009 Management Company, LLC since 2008. Vice President,
Evergreen Investment Services, Inc. from 2004 to 2007.
Assistant Vice President, Evergreen Investment
Services, Inc. from 2000 to 2004 and the head of the
Fund Reporting and Control Team within Fund
Administration since 2005.
Debra Ann Early Chief Compliance Officer, Chief Compliance Officer of Wells Fargo Funds None
45 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. None
- -----------
(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.) Effective November 1, 2009.
(4.) Treasurer during the period from June 1, 2009 to October 31, 2009.
Assistant Treasurer effective November 1, 2009.
128 Wells Fargo Advantage Municipal Income 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
CIFG -- CDC (Caisse des Depots et Consignations) IXIS Financial Guarantee
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
ETF -- Exchange-Traded Fund
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
FSA -- Farm Service Agency
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
HUD -- Housing & Urban Development
IDA -- Industrial Development Authority
IDAG -- Industrial Development Agency
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Company
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MFMR -- Multi-Family Mortgage Revenue
MMD -- Municipal Market Data
MTN -- Medium Term Note
MUD -- Municipal Utility District
NATL-RE -- National Public Finance Guarantee Corporation
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
SPDR -- Standard & Poor's Depositary Receipts
STIT -- Short-Term Investment Trust
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.
(GRAPHIC)
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(WELLS FARGO ADVANTAGE FUNDS LOGO)
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.
"Dow Jones" and "Dow Jones Target Date Indexes" are service marks of Dow Jones &
Company, Inc., and have been licensed for use for certain purposes by Global
Index Advisors, Inc., and Wells Fargo Funds Management, LLC. The Dow Jones
Target Date Indexes are based in part on the Barclays Capital Bond Indexes,
which are published by Barclays Capital Inc. The Wells Fargo Advantage Dow Jones
Target Date Funds, based on the Dow Jones Target Date Indexes, are not
sponsored, endorsed, sold or promoted by Dow Jones or Barclays Capital, and
neither Dow Jones nor Barclays Capital makes any representation regarding the
advisability of investing in such product(s) and/or about the quality, accuracy
and/or completeness of the Dow Jones Target Date Indexes or the Barclays Capital
Bond Indexes. IN NO EVENT SHALL DOW JONES, BARCLAYS CAPITAL OR ANY OF THEIR
LICENSORS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT OR
CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES.
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 FINRA/SIPC, an affiliate of Wells Fargo &
Company.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE (GRAPHIC)
Printed on Recycled paper
(C) 2010 Wells Fargo Funds Management, LLC. All rights reserved. www.wellsfargo.com/advantagefunds 120046 02-10
SMUNL/SAR106 12-09
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
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Not required in this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
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Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
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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
============================================================
The Governance Committee (the "Committee") of the Board of Trustees of the
registrant (the "Trust") has adopted procedures by which a shareholder of any
series of the Trust may submit properly a nominee recommendation for the
Committee's consideration.
The shareholder must submit any such recommendation (a "Shareholder
Recommendation") in writing to the Trust, to the attention of the Trust's
Secretary, at the address of the principal executive offices of the Trust.
The Shareholder Recommendation must be delivered to, or mailed and received at,
the principal executive offices of the Trust not less than forty-five (45)
calendar days nor more than seventy-five (75) calendar days prior to the date of
the Committee meeting at which the nominee would be considered.
The Shareholder Recommendation must include: (i) a statement in writing setting
forth (A) the name, age, date of birth, business address, residence address and
nationality of the person recommended by the shareholder (the "candidate"); (B)
the series (and, if applicable, class) and number of all shares of the Trust
owned of record or beneficially by the candidate, as reported to such
shareholder by the candidate; (C) any other information regarding the candidate
called for with respect to director nominees by paragraphs (a), (d), (e) and (f)
of Item 401 of Regulation S-K or paragraph (b) of Item 22 of Rule 14a-101
(Schedule 14A) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), adopted by the Securities and Exchange Commission (or the
corresponding provisions of any regulation or rule subsequently adopted by the
Securities and Exchange Commission or any successor agency applicable to the
Trust); (D) any other information regarding the candidate that would be required
to be disclosed if the candidate were a nominee in a proxy statement or other
filing required to be made in connection with solicitation of proxies for
election of directors pursuant to Section 14 of the Exchange Act and the rules
and regulations promulgated thereunder; and (E) whether the recommending
shareholder believes that the candidate is or will be an "interested person" of
the Trust (as defined in the Investment Company Act of 1940, as amended) and, if
not an "interested person," information regarding the candidate that will be
sufficient for the Trust to make such determination; (ii) the written and signed
consent of the candidate to be named as a nominee and to serve as a Trustee if
elected; (iii) the recommending shareholder's name as it appears on the Trust's
books; (iv) the series (and, if applicable, class) and number of all shares of
the Trust owned beneficially and of record by the recommending shareholder; and
(v) a description of all arrangements or understandings between the recommending
shareholder and the candidate and any other person or persons (including their
names) pursuant to which the recommendation is being made by the recommending
shareholder. In addition, the Committee may require the
candidate to interview in person and furnish such other information as it may
reasonably require or deem necessary to determine the eligibility of such
candidate to serve as a Trustee of the Trust.
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) under 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: February 25, 2010
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the date
indicated.
By:
/s/ Karla M. Rabusch
Karla M. Rabusch
President
Date: February 25, 2010
By:
/s/ Kasey L. Phillips
Kasey L. Phillips
Treasurer
Date: February 25, 2010