UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo Fund Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-643-9691
Date of fiscal year end: July 31, 2010
Date of reporting period: January 31, 2010
ITEM 1. REPORT TO SHAREHOLDERS
===============================
(WELLS FARGO ADVANTAGE FUNDS LOGO)
(GRAPHIC) REDUCE CLUTTER. SAVE TREES.
Sign up for electronic delivery of prospectuses and shareholder reports at
www.wellsfargo.com/advantagedelivery
(GRAPHIC)
Semi-Annual Report
January 31, 2010
WELLS FARGO ADVANTAGE LARGE CAP STOCK FUNDS
- - WELLS FARGO ADVANTAGE CAPITAL GROWTH FUND
- - WELLS FARGO ADVANTAGE ENDEAVOR SELECT FUND(SM)
- - WELLS FARGO ADVANTAGE GROWTH FUND
- - WELLS FARGO ADVANTAGE LARGE CAP GROWTH FUND
- - WELLS FARGO ADVANTAGE LARGE COMPANY CORE FUND
- - WELLS FARGO ADVANTAGE LARGE COMPANY VALUE FUND
- - WELLS FARGO ADVANTAGE U.S. VALUE FUND
REDUCE CLUTTER. SAVE TREES.
Sign up for electronic delivery of prospectuses and shareholder reports at
www.wellsfargo.com/advantagedelivery
Contents
LETTER TO SHAREHOLDERS .................................................... 2
PERFORMANCE HIGHLIGHTS
Capital Growth Fund ....................................................... 6
Endeavor Select Fund ...................................................... 8
Growth Fund ............................................................... 10
Large Cap Growth Fund ..................................................... 12
Large Company Core Fund ................................................... 14
Large Company Value Fund .................................................. 16
U.S. Value Fund ........................................................... 18
FUND EXPENSES ............................................................. 20
PORTFOLIO OF INVESTMENTS
Capital Growth Fund ....................................................... 23
Endeavor Select Fund ...................................................... 28
Growth Fund ............................................................... 32
Large Cap Growth Fund ..................................................... 38
Large Company Core Fund ................................................... 44
Large Company Value Fund .................................................. 49
U.S. Value Fund ........................................................... 54
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ...................................... 60
Statements of Operations .................................................. 62
Statements of Changes in Net Assets ....................................... 64
Financial Highlights ...................................................... 72
NOTES TO FINANCIAL STATEMENTS ............................................. 82
OTHER INFORMATION ......................................................... 92
LIST OF ABBREVIATIONS ..................................................... 94
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 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 JANUARY 31, 2010.
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 International 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 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
Conservative Allocation Fund
Growth Balanced Fund
Index Asset Allocation 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.
(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
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 Large Cap Stock Funds
Letter to Shareholders
(PHOTO OF KARLA M. RABUSCH)
Karla M. Rabusch,
President
WELLS FARGO ADVANTAGE FUNDS
POSITIVE ECONOMIC GROWTH RESUMED IN THE THIRD QUARTER OF 2009 AND CONTINUED
DURING THE FOURTH QUARTER
Dear Valued Shareholder,
We are pleased to provide you with this semiannual report for the Wells Fargo
Advantage Large Cap Funds for the six-month period that ended January 31, 2010.
The period brought welcome signs of economic improvement, supporting a strong
rally in the financial markets after a streak of six consecutive quarterly stock
market declines. We believe that this significant recovery, after an extended
period of weakness, underscores the importance of maintaining a disciplined,
long-term investment strategy. Although periods of volatility can be challenging
for investors, staying focused on a long-term strategy based on individual goals
and risk tolerance can help avoid missing potential periods of strong recovery.
ECONOMIC GROWTH TURNED POSITIVE AFTER A SEVERE CONTRACTION.
Positive economic growth resumed in the third quarter of 2009 and continued
during the fourth quarter, following four consecutive quarters of negative
economic growth for the first time in at least 60 years. Gross domestic product
(GDP) growth was 2.2% for the third quarter and 5.7% for the fourth quarter, the
strongest since 2003. The consensus among economists was that the recession that
began in December 2007 had likely ended during the summer of 2009. However, with
much of the growth attributable to government stimulus, questions remained over
the sustainability of the recovery. By the end of the six-month period, the
National Bureau of Economic Research had not declared an official end to the
recession.
UNEMPLOYMENT REMAINED HIGH, BUT OTHER ECONOMIC INDICATORS IMPROVED.
The unemployment rate rose but appeared to plateau during the six-month period.
Unemployment climbed to 10.1% in October 2009--its highest level in more than 25
years--before edging down to close the period at 9.7%. The pace of job losses
had slowed as the period came to a close. The Labor Department reported that
20,000 jobs were lost in January 2010, a significant improvement from the
monthly job losses of approximately 700,000 at the height of the recession.
Other encouraging news in January included increases in temporary jobs, average
hours worked, hourly earnings, and manufacturing employment. Still, since the
start of the recession, more than 8 million jobs had been lost.
Other economic statistics also began to show signs of improvement. Industrial
production, manufacturing, and consumer sentiment had all improved significantly
as the six-month period ended. Retail sales improved in the latter months of the
period, helped in part by the "cash-for-clunkers" program that temporarily
boosted auto sales. Home sales and prices also stabilized and began to show
signs of improvement in many areas of the country, spurred in part by the
government's $8,000 tax credit for first-time home buyers.
THE FED CONTINUED TO FOCUS ON ECONOMIC STIMULUS.
Despite extensive quantitative easing measures by the Federal Reserve, bank
lending did not expand during the six-month period. This indicates that the
Wells Fargo Advantage Large Cap Stock Funds 3
Letter to Shareholders
trillions of dollars of government stimulus that were added to the monetary
system might not have an inflationary impact in the near term. During the
period, however, debate began to escalate over the need for the Fed to outline
an "exit strategy" from its stimulus programs. Despite that debate, the Federal
Open Market Committee (FOMC) held the federal funds rate at the range of 0% to
0.25% that it first targeted in December 2008. The Fed concluded its purchases
of longer-term Treasuries in October 2009 but continued to buy mortgage-backed
securities, with that program slated to end in March 2010. In its final
statement during the six-month period, the FOMC noted the signs of economic
improvement but reiterated that it was likely to keep the federal funds rate at
exceptionally low levels for an extended period because of the continued
substantial economic slack.
SIGNS OF ECONOMIC IMPROVEMENT SUPPORTED A CONTINUED MARKET RALLY.
After a significant rally in the spring and early summer of 2009, stocks
continued to advance throughout most of the six-month period before staging a
moderate pullback in the final weeks of January 2010. The markets saw slight
corrections during October 2009 and January 2010 as volatility returned due to
questions about the sustainability of the economic improvement. The broad
market, as represented by the S&P 500 Index, rose more than 26% for all of 2009,
with a gain of nearly 65% from the March 9 low through year-end.
For the six-month period ended January 31, 2010, the S&P 500 Index gained 9.9%,
the Dow Jones Industrial Average rose 9.7%, and the Nasdaq Composite Index
advanced 8.5%. Mid cap stocks led in performance for the six-month period, while
large cap stocks slightly outpaced small caps. The Russell Midcap Index gained
13.6% during the period, the Russell 1000 Index of large cap stocks rose 10.3%,
and the Russell 2000 Index of small cap stocks advanced 8.6%. For the six-month
period, the value investment style outperformed the growth investment style
across all market capitalizations, as measured by the Russell indices.
DON'T LET SHORT-TERM VOLATILITY DERAIL LONG-TERM INVESTMENT GOALS.
The six-month period that ended January 31, 2010 brought a welcome reprieve from
the volatility of 2008 and early 2009. The rebound in market performance that
began in early 2009 underscores the importance of maintaining a focus on
long-term investment goals through periods of volatility so as not to miss
potential periods of strong recovery. Although periods of volatility can present
challenges, experience has 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 represent investments across a broad
range of asset classes and investment styles, giving you an opportunity to
create a diversified investment portfolio. Although 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.
FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2010, THE S&P 500 INDEX GAINED 9.9%,
THE DOW JONES INDUSTRIAL AVERAGE ROSE 9.7%, AND THE NASDAQ COMPOSITE INDEX
ADVANCED 8.5%.
4 Wells Fargo Advantage Large Cap Stock Funds
Letter to Shareholders
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 Large Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE CAPITAL GROWTH FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE CAPITAL GROWTH FUND (the Fund) seeks long-term capital
appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Michael Harris, CFA
Thomas J. Pence, CFA
FUND INCEPTION
November 3, 1997
SECTOR DISTRIBUTION (1)
(AS OF JANUARY 31, 2010)
(PIE CHART)
Consumer Discretionary (12%)
Consumer Staples (5%)
Energy (6%)
Financials (6%)
Health Care (11%)
Industrials (10%)
Information Technology (46%)
Materials (2%)
Telecommunication Services (2%)
TEN LARGEST EQUITY HOLDINGS (2)
(AS OF JANUARY 31, 2010)
Apple Incorporated 4.66%
Microsoft Corporation 4.55%
Google Incorporated Class A 3.74%
Cisco Systems Incorporated 3.08%
Oracle Corporation 2.74%
MasterCard Incorporated Class A 2.64%
Avon Products Incorporated 2.56%
DirectTV Class A 2.44%
Amazon.com Incorporated 2.36%
Juniper Networks Incorporated 2.34%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Large Cap Stock Funds 7
Performance Highlights
WELLS FARGO ADVANTAGE CAPITAL GROWTH FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF JANUARY 31, 2010)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
CAPITAL GROWTH FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFCGX) 0.96 23.49 (1.87) (0.17) 7.10 31.02 (0.70) 0.42 1.32% 1.25%
Class C (WFCCX) 5.70 29.02 (1.35) (0.17) 6.70 30.02 (1.35) (0.17) 2.07% 2.00%
Administrator Class (WFCDX) 7.26 31.46 (0.32) 0.69 1.14% 0.94%
Institutional Class (WWCIX) 7.37 31.61 (0.15) 0.78 0.87% 0.75%
Investor Class (SLGIX) 7.04 30.91 (0.77) 0.39 1.43% 1.35%
Russell 1000 Growth Index(6) 9.85 37.85 1.42 (3.95)
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE --
www.wellsfargo.com/advantagefunds.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND INVESTOR CLASS SHARES ARE
SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. Active trading results in increased
turnover and trading expenses and may generate higher short-term capital gains.
Certain investment strategies tend to increase the total risk of an investment
(relative to the broader market). This Fund is exposed to foreign investment
risk. Consult the Fund's prospectus for additional information on these and
other risks.
- ----------
(3.) Performance shown prior to the inception of the Administrator Class shares
on June 30, 2003, 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 the Institutional Class shares on April 11, 2005, reflects the
performance of the Administrator Class shares, and includes expenses that
are not applicable to and are higher than those of the Institutional Class
shares. Performance shown prior to June 30, 2003, reflects the performance
of the Investor Class shares, and includes expenses that are not applicable
to and are higher than those of the Institutional Class shares. Class A and
Class C shares incepted on July 31, 2007. Performance shown prior to the
inception of Class A shares reflects the performance of the Investor Class
shares, and includes expenses that are not applicable to and are higher
than those of the Class A shares, but has been adjusted to reflect Class A
sales charges. 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.
(4.) Reflects the gross expense ratio as stated in the December 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through November 30,
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.) The Russell 1000 Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values. You cannot invest directly in an Index.
8 Wells Fargo Advantage Large Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE ENDEAVOR SELECT FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE ENDEAVOR SELECT FUND (the Fund) seeks long-term
capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Michael Harris, CFA
Thomas J. Pence, CFA
FUND INCEPTION
December 29, 2000
SECTOR DISTRIBUTION (1)
(AS OF JANUARY 31, 2010)
(PIE CHART)
Consumer Discretionary (15%)
Consumer Staples (3%)
Energy (5%)
Financials (7%)
Health Care (10%)
Industrials (9%)
Information Technology (47%)
Materials (2%)
Telecommunication Services (2%)
TEN LARGEST EQUITY HOLDINGS (2)
(AS OF JANUARY 31, 2010)
Apple Incorporated 5.57%
Microsoft Corporation 4.53%
Google Incorporated Class A 4.00%
Cisco Systems Incorporated 3.31%
Express Scripts Incorporated 3.19%
MasterCard Incorporated Class A 2.98%
Teva Phamaceutical Industries limited ADR 2.88%
Amazon.com Incorporated 2.86%
DirectTV Class A 2.81%
Noble Energy Incorporated 2.73%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Large Cap Stock Funds 9
Performance Highlights
WELLS FARGO ADVANTAGE ENDEAVOR SELECT FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF JANUARY 31, 2010)
Including Sales Charge Excluding Sales Charge Expense Ratio
--------------------------------------- --------------------------------------- ----------------
ENDEAVOR SELECT FUND 6 Months* 1 Year 5 Year Life of Fund 6 Months* 1 Year 5 Year Life of Fund Gross(4) Net(5)
- -------------------- --------- ------ ------ ------------ --------- ------ ------ ------------ -------- ------
Class A (STAEX) 0.52 20.78 (2.19) (1.82) 6.62 28.19 (1.02) (1.18) 1.34% 1.25%
Class B (WECBX)** 1.22 22.13 (2.22) (1.75) 6.22 27.13 (1.78) (1.75) 2.08% 2.00%
Class C (WECCX) 5.22 26.35 (1.78) (1.92) 6.22 27.35 (1.78) (1.92) 2.09% 2.00%
Administrator Class (WECDX) 6.70 28.60 (0.77) (1.04) 1.16% 1.00%
Institutional Class (WFCIX) 6.84 28.80 (0.60) (0.95) 0.89% 0.80%
Russell 1000 Growth Index(6) 9.85 37.85 1.42 (2.15)
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE --
www.wellsfargo.com/advantagefunds.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS AND INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT A
FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. Active trading results in increased
turnover and trading expenses and may generate higher short-term capital gains.
Certain investment strategies tend to increase the total risk of an investment
(relative to the broader market). This Fund is exposed to foreign investment
risk, and nondiversification risk. Consult the Fund's prospectus for additional
information on these and other risks.
- ----------
(3.) Performance shown prior to the inception of the Administrator Class and
Institutional Class shares, on April 11, 2005, reflects the performance of
the Class A shares, and includes expenses that are not applicable to and
are higher than those of the Administrator Class and Institutional Class
shares, but does not include Class A sales charges. If it did include Class
A sales charges, returns would be lower. Class A, Class B and Class C
shares incepted on December 29, 2000.
(4.) Reflects the gross expense ratio as stated in the December 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through November 30,
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.) The Russell 1000 Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values. You cannot invest directly in an Index.
10 Wells Fargo Advantage Large Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE GROWTH FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE GROWTH FUND (the Fund) seeks long-term capital
appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Joseph M. Eberhardy, CFA, CPA
Thomas C. Ognar, CFA
Bruce C. Olson, CFA
FUND INCEPTION
December 31, 1993
SECTOR DISTRIBUTION (1)
(AS OF JANUARY 31, 2010)
(PIE-CHART)
Consumer Discretionary (15%)
Consumer Staples (2%)
Energy (6%)
Financials (6%)
Health Care (18%)
Industrials (5%)
Information Technology (43%)
Telecommunication Services (1%)
Materials (4%)
TEN LARGEST EQUITY HOLDINGS (2)
(AS OF JANUARY 31, 2010)
Google Incorporated Class A 3.64%
Alexion Pharmaceuticals Incorporated 2.66%
Cognizant Technology Solutions Corporation Class A 2.56%
Apple Incorporated 2.52%
Priceline.com Incorporated 2.47%
VistaPrint NV 2.31%
Cisco Systems Incorporated 2.21%
Mettler-Toledo International Incorporated 2.16%
Monolithic Power Systems Incorporated 2.15%
Baxter International Incorporated 2.14%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Large Cap Stock Funds 11
Performance Highlights
WELLS FARGO ADVANTAGE GROWTH FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF JANUARY 31, 2010)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
GROWTH FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ----------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (SGRAX) 6.96 35.40 4.17 (2.44) 13.49 43.68 5.41 (1.86) 1.35% 1.30%
Class C (WGFCX) 11.99 41.49 4.66 (2.64) 12.99 42.49 4.66 (2.64) 2.10% 2.05%
Administrator Class (SGRKX) 13.65 44.14 5.76 (1.47) 1.18% 0.96%
Institutional Class (SGRNX) 13.76 44.35 5.90 (1.25) 0.91% 0.80%
Investor Class (SGROX) 13.39 43.45 5.25 (1.87) 1.46% 1.40%
Russell 3000(R) Growth Index(6) 9.64 37.94 1.38 (3.78)
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
www.wellsfargo.com/advantagefunds.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND INVESTOR CLASS SHARES ARE
SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. Active trading results in increased
turnover and trading expenses and may generate higher short-term capital gains.
Certain investment strategies tend to increase the total risk of an investment
(relative to the broader market). This Fund is exposed to foreign investment
risk. Consult the Fund's prospectus for additional information on these and
other risks.
- ----------
(3.) Class A shares incepted on February 24, 2000. 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
February 24, 2000 through June 20, 2008, includes Advisor Class expenses
and is adjusted to reflect Class A sales charges. Performance shown prior
to February 24, 2000, for the Class A shares 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 the
Class C shares on December 26, 2002, reflects the performance of the
Investor Class shares, adjusted to reflect Class C sales charges and
expenses. Administrator Class shares incepted on August 30, 2002.
Institutional Class shares incepted on February 24, 2000. Performance shown
prior to the inception of the Administrator Class shares and Institutional
Class shares reflects the performance of the Investor Class shares, and
includes expenses that are not applicable to and are higher than those of
than those of the Administrator Class shares and the Institutional Class
shares.
(4.) Reflects the gross expense ratio as stated in the December 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through November 30,
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.) The Russell 3000 Growth Index measures the performance of those Russell
3000 Index companies with higher price-to-book ratios and higher forecasted
growth values. The stocks in this Index are also members of either the
Russell 1000 Growth Index or the Russell 2000(R) Growth Index. You cannot
invest directly in an Index.
12 Wells Fargo Advantage Large Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE LARGE CAP GROWTH FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE LARGE CAP GROWTH FUND (the Fund) seeks long-term
capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Joseph M. Eberhardy, CFA, CPA
Thomas C. Ognar, CFA
Bruce C. Olson, CFA
FUND INCEPTION
December 30, 1981
SECTOR DISTRIBUTION (1)
(AS OF JANUARY 31, 2010)
(PIE-CHART)
Consumer Discretionary (12%)
Consumer Staples (5%)
Energy (7%)
Financials (6%)
Health Care (15%)
Industrials (8%)
Information Technology (41%)
Materials (6%)
TEN LARGEST EQUITY HOLDINGS (2)
(AS OF JANUARY 31, 2010)
Google Incorporated Class A 4.68%
Apple Incorporated 4.20%
Cisco Systems Incorporated 2.91%
International Business Machines Corporation 2.82%
Cognizant Technology Solutions Corporation Class A 2.78%
MasterCard Incorporated Class A 2.50%
Baxter International Incorporated 2.23%
Vista Incorporated Class A 2.16%
Target Corporation 2.05%
Abbott Laboratories Incorporated 1.96%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Large Cap Stock Funds 13
Performance Highlights
WELLS FARGO ADVANTAGE LARGE CAP GROWTH FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF JANUARY 31, 2010)
Expense Ratio
-----------------
LARGE CAP GROWTH FUND 6 Months* 1 Year 5 Year 10 Year Gross(3) Net(4)
- --------------------- --------- ------ ------ ------- -------- ------
Investor Class (STRFX) 9.63 33.71 1.87 (4.36) 1.46% 1.19%
Russell 1000 Growth Index(5) 9.85 37.85 1.42 (3.95)
* 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.
INVESTOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT
DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. Active trading results in increased
turnover and trading expenses and may generate higher short-term capital gains.
Certain investment strategies tend to increase the total risk of an investment
(relative to the broader market). This Fund is exposed to foreign investment
risk. Consult the Fund's prospectus for additional information on these and
other risks.
- ----------
(3.) Reflects the gross expense ratio as stated in the December 1, 2009
prospectus.
(4.) The investment adviser has contractually committed through November 30,
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.) The Russell 1000 Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values. You cannot invest directly in an Index.
14 Wells Fargo Advantage Large Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE LARGE COMPANY CORE FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE LARGE COMPANY CORE FUND (the Fund) seeks total return
comprised of long-term capital appreciation and current income.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Matrix Asset Advisors, Inc.
PORTFOLIO MANAGER
David A. Katz, CFA
FUND INCEPTION
December 29, 1995
SECTOR DISTRIBUTION (1)
(AS OF JANUARY 31, 2010)
(PIE CHART)
Consumer Discretionary (17%)
Consumer Staples (7%)
Energy (12%)
Financials (15%)
Health Care (10%)
Industrials (8%)
Information Technology (28%)
Materials (3%)
TEN LARGEST EQUITY HOLDINGS (2)
(AS OF JANUARY 31, 2010)
McGraw-Hill Companies Incorpoated 3.93%
Devon Energy Corporation 3.70%
Bank of New York Corporation 3.70%
Staples Incorporated 3.61%
Monster Worldwide Incorporated 3.37%
Western Union Company 3.25%
eBay Incorporated 3.24%
Tyco International Limited 3.24%
JPMorgan Chase & Company 3.13%
Cisco Systems Incorporated 3.13%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Large Cap Stock Funds 15
Performance Highlights
WELLS FARGO ADVANTAGE LARGE COMPANY CORE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF JANUARY 31, 2010)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
LARGE COMPANY CORE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ----------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (SGNAX) 4.28 37.44 (1.66) (3.40) 10.66 45.79 (0.49) (2.83) 1.42% 1.14%
Class B (SGNBX)** 5.20 39.71 (1.63) (3.24) 10.20 44.71 (1.21) (3.24) 2.17% 1.89%
Class C (SGNCX) 9.26 43.78 (1.20) (3.45) 10.26 44.78 (1.20) (3.45) 2.17% 1.89%
Administrator Class (SGIKX) 10.75 45.99 (0.31) (2.59) 1.25% 0.95%
Institutional Class (SGNIX) 10.90 46.49 0.01 (2.26) 0.97% 0.66%
Investor Class (SGRIX) 10.59 45.57 (0.65) (2.88) 1.53% 1.28%
S&P 500 Index(6) 9.87 33.14 0.18 (0.80)
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE --
www.wellsfargo.com/advantagefunds.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND INVESTOR CLASS SHARES ARE
SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. Certain investment strategies tend to
increase the total risk of an investment (relative to the broader market). This
Fund is exposed to foreign investment risk. Consult the Fund's prospectus for
additional information on these and other risks.
- ----------
(3.) Class A shares incepted on February 29, 2000. Class B and Class C shares
incepted on July 18, 2008. Prior to July 18, 2008, the Fund was named the
Growth and Income Fund. 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 Class A from February 29, 2000, through June 20,
2008, includes Advisor Class expenses and is adjusted to reflect Class A
sales charges. Performance shown prior to February 29, 2000, for Class A
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 B and Class C reflects the performance of the
Class A shares, adjusted to reflect Class B and Class C sales charges and
expenses. Administrator Class shares incepted on December 31, 2001.
Institutional Class shares incepted on February 29, 2000. Performance shown
prior to the inception of the Administrator Class shares and Institutional
Class shares reflects the performance of the Investor Class shares, and
includes expenses that are not applicable to and are higher than those of
the Administrator Class shares and Institutional Class shares.
(4.) Reflects the gross expense ratio as stated in the December 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through November 30,
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.) The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index with
each stock's weight in the Index proportionate to its market value. You
cannot invest directly in an Index.
16 Wells Fargo Advantage Large Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE LARGE COMPANY VALUE FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE LARGE COMPANY VALUE FUND (the Fund) seeks long-term
capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Phocas Financial Corporation
PORTFOLIO MANAGERS
Stephen L. Block, CFA
William F.K. Schaff, CFA
FUND INCEPTION
July 1, 1993
SECTOR DISTRIBUTION (1)
(AS OF JANUARY 31, 2010)
(PIE CHART)
Consumer Discretionary (11%)
Consumer Staples (4%)
Energy (17%)
Financials (23%)
Health Care (10%)
Industrials (13%)
Information Technology (7%)
Materials (4%)
Telecommunication Services (5%)
Utilities (6%)
TEN LARGEST EQUITY HOLDINGS (2)
(AS OF JANUARY 31, 2010)
Exxon Mobil Corporation 4.28%
General Electric Company 3.67%
JPMorgan Chase & Company 2.73%
Bank of America Corporation 2.47%
Talisman Energy Incorporated 2.29%
Comerica Incorporated 2.27%
AT&T Incorporated 1.91%
Metlife Incorporated 1.84%
Norfolk Southern Corporation 1.76%
Devon Energy Corporation 1.76%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Large Cap Stock Funds 17
Performance Highlights
WELLS FARGO ADVANTAGE LARGE COMPANY VALUE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF JANUARY 31, 2010)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
LARGE COMPANY VALUE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- ------------------------ --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WLCAX) 4.55 24.40 (0.71) 2.00 10.93 32.00 0.47 2.60 1.52% 1.25%
Class C (WFLVX) 9.54 30.05 (0.19) 1.93 10.54 31.05 (0.19) 1.93 2.23% 2.00%
Administrator Class (WWIDX) 11.06 32.43 0.84 2.97 1.30% 0.96%
Institutional Class (WLCIX) 11.23 32.60 0.91 3.01 1.06% 0.75%
Investor Class (SDVIX) 10.87 31.96 0.44 2.63 1.63% 1.35%
Russell 1000 Value Index(6) 10.70 31.44 (0.46) 2.52
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE --
www.wellsfargo.com/advantagefunds.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS, INSTITUTIONAL CLASS, AND INVESTOR CLASS SHARES ARE
SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. Certain investment strategies tend to
increase the total risk of an investment (relative to the broader market). This
Fund is exposed to foreign investment risk. Consult the Fund's prospectus for
additional information on these and other risks.
- ----------
(3.) Class A and Class C shares incepted on March 31, 2008. The performance
figures prior to March 21, 2008 do not reflect the Fund's current
investment objective and strategies. Performance shown for the Class A
shares from March 1, 2002 to March 30, 2008 reflects the performance of the
Investor Class shares, and includes expenses that are not applicable to and
are higher than those of the Class A shares but has been adjusted to
reflect Class A sales charges. Performance shown for Class A shares prior
to March 1, 2002, and for the Class C shares prior to their inception
reflects the performance of the Investor Class shares, adjust to reflect
Class A and Class C sales charges and expenses, as applicable.
Administrator Class shares incepted on December 31, 2001. Performance shown
prior to the inception of the Administrator Class shares reflects the
performance of the Investor Class shares, and includes expenses that are
not applicable to and are higher than those of the Administrator Class
shares. 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, 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 December 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through November 30,
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.) The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
18 Wells Fargo Advantage Large Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE U.S. VALUE FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE U.S. VALUE FUND (the Fund) seeks total return with an
emphasis on long-term capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Bryant VanCronkhite, CFA
FUND INCEPTION
December 29, 1995
SECTOR DISTRIBUTION (1)
(AS OF JANUARY 31, 2010)
(PIE CHART)
Consumer Discretionary (5%)
Consumer Staples (7%)
Energy (21%)
Financials (24%)
Health Care (11%)
Industrials (16%)
Information Technology (5%)
Materials (5%)
Telecommunication Services (3%)
Utilities (3%)
TEN LARGEST EQUITY HOLDINGS (2)
(AS OF JANUARY 31, 2010)
Exxon Mobil Corporation 4.24%
Bank of America 3.99%
JPMorgan Chase & Company 3.56%
Pfizer Incorporated 3.30%
US Bancorp 3.01%
General Electric Company 2.91%
Chevron Corporation 2.59%
Noble Energy Incorporated 2.18%
Boeing Company 2.14%
Anadarko Petroleum Corporation 2.10%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Large Cap Stock Funds 19
Performance Highlights
WELLS FARGO ADVANTAGE U.S. VALUE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF JANUARY 31, 2010)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
U.S. VALUE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
- --------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFUAX) 4.76 25.97 (2.39) (0.22) 11.20 33.60 (1.24) 0.37 1.48% 1.25%
Class B (WFUBX)** 5.80 27.61 (2.42) (0.13) 10.80 32.61 (1.98) (0.13) 2.22% 2.00%
Class C (WFUCX) 9.81 31.70 (1.99) (0.36) 10.81 32.70 (1.99) (0.36) 2.22% 2.00%
Administrator Class (SEQKX) 11.29 33.93 (0.96) 0.73 1.29% 0.96%
Investor Class (SEQIX) 11.10 33.40 (1.33) 0.33 1.58% 1.32%
Russell 1000 Value Index(6) 10.70 31.44 (0.46) 2.52
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
www.wellsfargo.com/advantagefunds.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS AND INVESTOR CLASS SHARES ARE SOLD WITHOUT A
FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. This Fund is exposed to foreign
investment risk. Consult the Fund's prospectus for additional information on
these and other risks.
- ----------
(3.) Performance shown prior to the inception of Class A, Class B and Class C
on November 30, 2000, 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 December 31, 2001, 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. Effective
June 20, 2008, Class Z was renamed Investor Class and modified to assume
the features and attributes of the Investor Class.
(4.) Reflects the gross expense ratio as stated in the December 1, 2009
prospectus.
(5.) The investment adviser has contractually committed through November 30,
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.) The Russell 1000 Value Index measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth
values. You cannot invest directly in an Index.
20 Wells Fargo Advantage Large Cap Stock Funds
Fund Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, redemption fees (if
any) and exchange fees (if any); and (2) ongoing costs, including management
fees; distribution (12b-1) and/or shareholder service fees; and other Fund
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
six-month period and held for the entire six-month period, from August 1, 2009
to January 31, 2010.
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
CAPITAL GROWTH FUND 08-01-2009 01-31-2010 Period(1) Expense Ratio
- ------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $1,071.00 $ 6.53 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.36 1.25%
CLASS C
Actual $1,000.00 $1,067.00 $10.42 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,015.12 $10.16 2.00%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,072.60 $ 4.91 0.94%
Hypothetical (5% return before expenses) $1,000.00 $1,020.47 $ 4.79 0.94%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,073.70 $ 3.92 0.75%
Hypothetical (5% return before expenses) $1,000.00 $1,021.42 $ 3.82 0.75%
INVESTOR CLASS
Actual $1,000.00 $1,070.40 $ 7.05 1.35%
Hypothetical (5% return before expenses) $1,000.00 $1,018.40 $ 6.87 1.35%
Wells Fargo Advantage Large Cap Stock Funds 21
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
ENDEAVOR SELECT FUND 08-01-2009 01-31-2010 Period(1) Expense Ratio
- -------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $1,066.20 $ 6.51 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.36 1.25%
CLASS B
Actual $1,000.00 $1,062.20 $10.40 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,015.12 $10.16 2.00%
CLASS C
Actual $1,000.00 $1,062.20 $10.40 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,015.12 $10.16 2.00%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,067.00 $ 5.21 1.00%
Hypothetical (5% return before expenses) $1,000.00 $1,020.16 $ 5.09 1.00%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,068.40 $ 4.17 0.80%
Hypothetical (5% return before expenses) $1,000.00 $1,021.17 $ 4.08 0.80%
GROWTH FUND
CLASS A
Actual $1,000.00 $1,134.90 $ 7.00 1.30%
Hypothetical (5% return before expenses) $1,000.00 $1,018.65 $ 6.61 1.30%
CLASS C
Actual $1,000.00 $1,129.90 $11.01 2.05%
Hypothetical (5% return before expenses) $1,000.00 $1,014.87 $10.41 2.05%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,136.50 $ 5.17 0.96%
Hypothetical (5% return before expenses) $1,000.00 $1,020.37 $ 4.89 0.96%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,137.60 $ 4.31 0.80%
Hypothetical (5% return before expenses) $1,000.00 $1,021.17 $ 4.08 0.80%
INVESTOR CLASS
Actual $1,000.00 $1,133.90 $ 7.53 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,018.15 $ 7.12 1.40%
LARGE CAP GROWTH FUND
INVESTOR CLASS
Actual $1,000.00 $1,096.30 $ 6.29 1.19%
Hypothetical (5% return before expenses) $1,000.00 $1,019.21 $ 6.06 1.19%
LARGE COMPANY CORE FUND
CLASS A
Actual $1,000.00 $1,106.60 $ 6.05 1.14%
Hypothetical (5% return before expenses) $1,000.00 $1,019.46 $ 5.80 1.14%
CLASS B
Actual $1,000.00 $1,102.00 $10.01 1.89%
Hypothetical (5% return before expenses) $1,000.00 $1,015.68 $ 9.60 1.89%
CLASS C
Actual $1,000.00 $1,102.60 $10.02 1.89%
Hypothetical (5% return before expenses) $1,000.00 $1,015.68 $ 9.60 1.89%
22 Wells Fargo Advantage Large Cap Stock Funds
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
LARGE COMPANY CORE FUND (continued) 08-01-2009 01-31-2010 Period(1) Expense Ratio
- ----------------------------------- ------------- ------------- ----------- -------------
ADMINISTRATOR CLASS
Actual $1,000.00 $1,107.50 $ 5.05 0.95%
Hypothetical (5% return before expenses) $1,000.00 $1,020.42 $ 4.84 0.95%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,109.00 $ 3.51 0.66%
Hypothetical (5% return before expenses) $1,000.00 $1,021.88 $ 3.36 0.66%
INVESTOR CLASS
Actual $1,000.00 $1,105.90 $ 6.79 1.28%
Hypothetical (5% return before expenses) $1,000.00 $1,018.75 $ 6.51 1.28%
LARGE COMPANY VALUE FUND
CLASS A
Actual $1,000.00 $1,109.30 $ 6.65 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.36 1.25%
CLASS C
Actual $1,000.00 $1,105.40 $10.61 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,015.12 $10.16 2.00%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,110.60 $ 5.11 0.96%
Hypothetical (5% return before expenses) $1,000.00 $1,020.37 $ 4.89 0.96%
INSTITUTIONAL CLASS
Actual $1,000.00 $1,112.30 $ 3.99 0.75%
Hypothetical (5% return before expenses) $1,000.00 $1,021.42 $ 3.82 0.75%
INVESTOR CLASS
Actual $1,000.00 $1,108.70 $ 7.18 1.35%
Hypothetical (5% return before expenses) $1,000.00 $1,018.40 $ 6.87 1.35%
U.S. VALUE FUND
CLASS A
Actual $1,000.00 $1,112.00 $ 6.65 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.36 1.25%
CLASS B
Actual $1,000.00 $1,108.00 $10.63 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,015.12 $10.16 2.00%
CLASS C
Actual $1,000.00 $1,108.10 $10.63 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,015.12 $10.16 2.00%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,112.90 $ 5.11 0.96%
Hypothetical (5% return before expenses) $1,000.00 $1,020.37 $ 4.89 0.96%
INVESTOR CLASS
Actual $1,000.00 $1,111.00 $ 7.02 1.32%
Hypothetical (5% return before expenses) $1,000.00 $1,018.55 $ 6.72 1.32%
- ----------
(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).
Wells Fargo Advantage Large Cap Stock Funds 23
Portfolio of Investments--January 31, 2010 (Unaudited)
CAPITAL GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
COMMON STOCKS: 96.86%
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS: 1.54%
612,800 COACH INCORPORATED $ 21,374,464
------------------
AUTO & TRUCKS: 1.14%
1,450,150 FORD MOTOR COMPANY+<< 15,719,626
------------------
BEVERAGES: 0.83%
231,610 ANHEUSER BUSCH INBEV+ 11,531,862
------------------
BIOPHARMACEUTICALS: 4.21%
236,879 CELGENE CORPORATION+ 13,449,990
313,942 GILEAD SCIENCES INCORPORATED+ 15,153,980
522,610 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 29,642,439
58,246,409
------------------
BUSINESS SERVICES: 4.29%
329,773 ALLIANCE DATA SYSTEMS CORPORATION+<< 19,608,303
1,726,500 ORACLE CORPORATION 39,813,090
59,421,393
------------------
CHEMICALS & ALLIED PRODUCTS: 2.12%
385,700 AIR PRODUCTS & CHEMICALS INCORPORATED 29,297,772
------------------
COAL MINING: 0.99%
326,417 PEABODY ENERGY CORPORATION 13,748,684
------------------
COMMUNICATIONS: 1.68%
241,022 EQUINIX INCORPORATED+<< 23,193,547
------------------
COMMUNICATIONS EQUIPMENT: 2.46%
1,372,750 JUNIPER NETWORKS INCORPORATED+<< 34,085,383
------------------
COMPUTERS - MEMORY DEVICES: 2.12%
1,757,450 EMC CORPORATION+ 29,296,692
------------------
COSMETICS, PERSONAL CARE: 2.69%
1,235,200 AVON PRODUCTS INCORPORATED 37,228,928
------------------
CRUDE PETROLEUM & NATURAL GAS: 1.67%
312,150 NOBLE ENERGY INCORPORATED 23,080,371
------------------
DEPOSITORY INSTITUTIONS: 3.04%
1,756,550 BANK OF AMERICA CORPORATION 26,664,429
395,300 JPMORGAN CHASE & COMPANY 15,392,982
42,057,411
------------------
DRILLING OIL & NATURAL GAS WELLS: 1.19%
406,850 NOBLE CORPORATION 16,404,192
------------------
E-COMMERCE/SERVICES: 3.32%
273,750 AMAZON.COM INCORPORATED+ 34,330,988
506,141 EBAY INCORPORATED+ 11,651,366
45,982,354
------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 9.97%
351,850 AMPHENOL CORPORATION CLASS A 14,017,704
769,570 BROADCOM CORPORATION CLASS A 20,562,910
24 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
CAPITAL GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (continued)
1,993,250 CISCO SYSTEMS INCORPORATED+ $ 44,788,328
1,110,450 MARVELL TECHNOLOGY GROUP LIMITED+ 19,355,144
2,260,500 MICRON TECHNOLOGY INCORPORATED+<< 19,711,560
442,750 NETAPP INCORPORATED+ 12,897,308
429,051 NVIDIA CORPORATION+ 6,603,090
137,936,044
------------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT: 1.68%
532,600 ILLINOIS TOOL WORKS INCORPORATED 23,216,034
------------------
GENERAL MERCHANDISE STORES: 1.86%
677,650 TJX COMPANIES INCORPORATED 25,757,477
------------------
HEALTH SERVICES: 3.57%
336,450 EXPRESS SCRIPTS INCORPORATED+ 28,214,697
345,400 MEDCO HEALTH SOLUTIONS INCORPORATED+ 21,235,192
49,449,889
------------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION CONTRACTS: 1.36%
673,600 FOSTER WHEELER AG+ 18,847,328
------------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 8.59%
352,145 APPLE INCORPORATED+ 67,654,097
696,599 INGERSOLL-RAND PLC 22,611,604
1,478,646 INTEL CORPORATION 28,685,732
118,951,433
------------------
INFORMATION & BUSINESS SERVICES: 5.20%
102,694 GOOGLE INCORPORATED CLASS A+ 54,368,257
1,171,300 YAHOO! INCORPORATED+ 17,581,213
71,949,470
------------------
INSURANCE CARRIERS: 1.22%
511,750 UNITEDHEALTH GROUP INCORPORATED 16,887,750
------------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 1.39%
399,150 ROCKWELL AUTOMATION INCORPORATED<< 19,254,996
------------------
MEDIA - COMMUNICATION: 2.56%
1,166,784 DIRECTV+ 35,411,894
------------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 1.54%
603,200 TYCO INTERNATIONAL LIMITED 21,371,376
------------------
MISCELLANEOUS RETAIL: 0.95%
229,650 COSTCO WHOLESALE CORPORATION 13,188,800
------------------
MOTION PICTURES: 0.70%
328,700 WALT DISNEY COMPANY 9,713,085
------------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 4.37%
585,950 AMERICAN EXPRESS COMPANY 22,066,877
153,500 MASTERCARD INCORPORATED CLASS A 38,359,650
60,426,527
------------------
OIL & GAS: 0.96%
418,350 SUNCOR ENERGY INCORPORATED 13,240,778
------------------
Wells Fargo Advantage Large Cap Stock Funds 25
Portfolio of Investments--January 31, 2010 (Unaudited)
CAPITAL GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
OIL & GAS FIELD SERVICES: 1.22%
199,143 TRANSOCEAN LIMITED+ $ 16,875,378
------------------
RETAIL: 0.18%
69,582 BEST BUY COMPANY INCORPORATED 2,550,180
------------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 1.20%
859,950 INVESCO LIMITED 16,597,035
------------------
SOFTWARE: 4.78%
2,347,650 MICROSOFT CORPORATION 66,156,777
------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS: 1.87%
513,300 COVIDIEN LIMITED 25,952,448
------------------
TELECOMMUNICATIONS: 5.69%
740,274 AMERICAN TOWER CORPORATION CLASS A+ 31,424,631
4,205,432 MOTOROLA INCORPORATED 25,863,407
549,270 QUALCOMM INCORPORATED 21,525,891
78,813,929
------------------
TRANSPORTATION BY AIR: 1.87%
2,111,600 DELTA AIR LINES INCORPORATED+<< 25,824,865
------------------
TRAVEL & RECREATION: 0.84%
540,500 EXPEDIA INCORPORATED 11,572,105
------------------
TOTAL COMMON STOCKS (COST $1,277,422,700) 1,340,614,686
------------------
COLLATERAL FOR SECURITIES LENDING: 5.52%
YIELD
--------
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.27%
3,709,586 DWS MONEY MARKET SERIES INSTITUTIONAL(u) 0.13% 3,709,586
------------------
INTEREST
PRINCIPAL RATE MATURITY DATE
--------- -------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 5.25%
$ 1,642,817 ABN AMRO NORTH AMERICA FINANCE INCORPORATED 0.18 02/08/2010 1,642,743
649,178 ALLIED IRISH BANKS NORTH AMERICA INCORPORATED 0.25 02/03/2010 649,178
397,456 AMSTEL FUNDING CORPORATION++(p) 0.60 02/05/2010 397,416
105,988 ANGLO IRISH BANK CORPORATION++ 0.24 02/03/2010 105,985
529,941 ANGLO IRISH BANK CORPORATION++ 0.24 02/04/2010 529,923
582,935 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/22/2010 582,864
264,970 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/26/2010 264,933
264,970 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/08/2010 264,957
397,456 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/19/2010 397,411
794,911 AUTOBAHN FUNDING COMPANY LLC++(p) 0.22 02/17/2010 794,824
688,923 AUTOBAHN FUNDING COMPANY LLC++(p) 0.23 02/24/2010 688,813
2,268,571 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $2,268,594) 0.12 02/01/2010 2,268,571
953,894 BANK OF IRELAND 0.35 02/01/2010 953,894
556,438 BANK OF IRELAND 0.50 02/02/2010 556,438
1,483,834 BANK OF NOVA SCOTIA (HOUSTON) 0.18 02/16/2010 1,483,845
52,994 BEETHOVEN FUNDING CORPORATION++(p) 0.30 02/03/2010 52,992
211,976 BEETHOVEN FUNDING CORPORATION++(p) 0.32 02/02/2010 211,971
1,589,823 BNP PARIBAS (NEW YORK) 0.15 02/01/2010 1,589,822
1,195,388 BRYANT PARK FUNDING LLC++(p) 0.16 02/12/2010 1,195,318
26 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
CAPITAL GROWTH FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 119,237 BTM CAPITAL CORPORATION++ 0.26% 02/03/2010 $ 119,233
211,976 CALCASIEU PARISH LA+/-ss 0.35 12/01/2027 211,976
291,467 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY+/-ss 0.30 06/01/2028 291,467
140,302 COLORADO HOUSING & FINANCE AUTHORITY+/-ss 0.25 10/01/2038 140,302
1,483,834 CONCORD MINUTEMEN CAPITAL COMPANY++(p) 0.35 02/16/2010 1,483,589
423,953 COOK COUNTY IL+/-ss 0.25 11/01/2030 423,953
1,483,834 DANSKE BANK A/S COPENHAGEN 0.15 02/01/2010 1,483,834
953,894 DENVER CO CITY & COUNTY SCHOOL DISTRICT+/-ss 0.33 12/15/2037 953,894
1,483,834 DEUTSCHE BANK (CAYMAN) 0.12 02/01/2010 1,483,834
556,438 DEXIA BANK (GRAND CAYMAN) 0.22 02/02/2010 556,438
794,911 DEXIA DELAWARE LLC 0.21 02/04/2010 794,888
1,483,834 DNB NOR BANK ASA 0.13 02/01/2010 1,483,834
1,483,834 ENI FINANCE USA INCORPORATED++ 0.19 02/04/2010 1,483,795
476,947 ERASMUS CAPITAL CORPORATION++(p) 0.20 02/19/2010 476,894
582,935 ERASMUS CAPITAL CORPORATION++(p) 0.22 02/04/2010 582,917
794,911 FORTIS BANK NV SA 0.17 02/03/2010 794,911
688,923 FORTIS BANK NV SA 0.19 02/05/2010 688,923
1,324,852 GDF SUEZ++ 0.20 02/03/2010 1,324,823
1,966,981 GOLDMAN SACHS REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $1,967,001) 0.12 02/01/2010 1,966,981
1,536,828 GRAMPIAN FUNDING LLC++(p) 0.24 02/18/2010 1,536,638
5,194,392 GRYPHON FUNDING LIMITED(a)(i) 0.00 08/05/2010 2,033,604
741,917 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 05/01/2023 741,917
537,890 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 07/01/2034 537,890
87,440 HENRICO COUNTY VA ECONOMIC DEVELOPMENT AUTHORITY+/-ss 0.23 11/01/2042 87,440
794,911 HOUSTON TX UTILITY SYSTEM+/-ss 0.18 05/15/2034 794,911
264,970 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE+/-ss 0.22 07/01/2029 264,970
105,988 INDIANA MUNICIPAL POWER AGENCY+/-ss 0.24 01/01/2018 105,988
1,351,349 ING USA FUNDING LLC 0.17 02/09/2010 1,351,285
158,982 KANSAS CITY MO SPECIAL OBLIGATION+/-ss 0.24 04/15/2025 158,982
1,483,834 KBC BANK NV BRUSSELS 0.15 02/01/2010 1,483,834
1,642,817 LLOYDS TSB BANK PLC 0.20 02/04/2010 1,642,821
217,965 LMA AMERICAS LLC++(p) 0.18 02/11/2010 217,952
992,314 LMA AMERICAS LLC++(p) 0.18 02/12/2010 992,250
52,994 LOUIS DREYFUS CORPORATION 0.25 02/01/2010 52,993
1,751,454 MASSACHUSETTS HEFA+/-ss 0.19 10/01/2034 1,751,454
529,941 MATCHPOINT MASTER TRUST++(p) 0.17 02/22/2010 529,883
953,894 MATCHPOINT MASTER TRUST++(p) 0.17 02/26/2010 953,772
264,970 MONT BLANC CAPITAL CORPORATION++(p) 0.19 02/10/2010 264,955
190,779 MONTGOMERY COUNTY TN PUBLIC BUILDING+/-ss 0.21 02/01/2036 190,779
1,589,823 NATIXIS US FINANCE COMPANY LLC 0.21 02/10/2010 1,589,721
105,988 NEW JERSEY STATE TURNPIKE AUTHORITY+/-ss 0.24 01/01/2018 105,988
1,242,711 NEW YORK STATE DORMITORY AUTHORITY+/-ss 0.16 07/01/2034 1,242,711
922,097 NEWPORT BEACH CALIFORNIA REVENUE+/-ss 0.18 12/01/2040 922,097
1,060,412 NEWPORT FUNDING CORPORATION++(p) 0.20 02/16/2010 1,060,311
1,059,882 NIEUW AMSTERDAM RECEIVABLES CORPORATION++(p) 0.18 02/18/2010 1,059,781
309,750 NORTH DAKOTA HOUSING FINANCE AGENCY+/-ss 0.24 01/01/2034 309,750
1,059,882 REGENCY MARKETS #1 LLC++(p) 0.18 02/16/2010 1,059,792
145,734 ROMULUS FUNDING CORPORATION++(p) 0.28 02/18/2010 145,712
1,021,726 ROYAL BANK OF SCOTLAND PLC 0.17 02/03/2010 1,021,707
1,642,817 SCALDIS CAPITAL LIMITED++(p) 0.20 02/04/2010 1,642,771
1,483,834 SOCIETE GENERALE BANNON LLC 0.19 02/11/2010 1,483,834
105,988 SOCIETE GENERALE BANNON LLC 0.24 02/10/2010 105,989
1,377,846 SOLITAIRE FUNDING LLC++(p) 0.21 02/11/2010 1,377,750
Wells Fargo Advantage Large Cap Stock Funds 27
Portfolio of Investments--January 31, 2010 (Unaudited)
CAPITAL GROWTH FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 1,483,834 SVENSKA HANDELSBANKEN (NEW YORK) 0.22% 02/11/2010 $ 1,483,859
921,461 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.17 02/25/2010 921,348
212,294 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.18 02/19/2010 212,273
1,244,142 TULIP FUNDING CORPORATION++(p) 0.16 02/10/2010 1,244,081
476,947 TULSA COUNTY OK INDUSTRIAL AUTHORITY REVENUE+/-ss 0.20 07/01/2032 476,947
1,695,811 UNICREDITO ITALIANO (NEW YORK) 0.22 02/08/2010 1,695,811
1,483,834 VALDEZ ALASKA MARINE TERM REVENUE+/-ss 0.18 07/01/2037 1,483,834
158,982 VERMONT STATE STUDENT ASSISTANCE CORPORATION+/-ss 0.22 12/15/2040 158,982
6,542,677 VFNC CORPORATION+++/-(a)(i) 0.46 09/30/2010 3,271,338
1,589,823 YORKTOWN CAPITAL LLC++(p) 0.19 02/03/2010 1,589,794
72,738,883
------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $75,829,163) 76,448,469
------------------
SHARES YIELD
------ --------
SHORT-TERM INVESTMENTS: 2.56%
MUTUAL FUNDS: 2.56%
35,398,882 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)~+++ 0.11 35,398,882
------------------
TOTAL SHORT-TERM INVESTMENTS (COST $35,398,882) 35,398,882
------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,388,650,745)* 104.94% 1,452,462,037
OTHER ASSETS AND LIABILITIES, NET (4.94) (68,330,849)
------ ------------------
TOTAL NET ASSETS 100.00% $ 1,384,131,188
------ ------------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
(u) Rate shown is the 7-day annualized yield at period end.
++ 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.
(p) Asset-backed commercial paper.
+/- 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.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
+++ Short-term security of an affiliate of the Fund with a cost of $35,398,882.
* Cost for federal income tax purposes is $1,400,970,177 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $123,332,056
Gross unrealized depreciation (71,840,196)
------------
Net unrealized appreciation $ 51,491,860
The accompanying notes are an integral part of these financial statements.
28 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
ENDEAVOR SELECT FUND
SHARES SECURITY NAME VALUE
- --------------- ------------- ------------------
COMMON STOCKS: 98.22%
AUTO & TRUCKS: 2.33%
2,734,700 FORD MOTOR COMPANY+<< $ 29,644,148
------------------
BIOPHARMACEUTICALS: 3.20%
718,865 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 40,774,023
------------------
BUSINESS SERVICES: 5.60%
1,371,600 JUNIPER NETWORKS INCORPORATED+ 34,056,828
1,621,700 ORACLE CORPORATION 37,396,402
71,453,230
------------------
CHEMICALS & ALLIED PRODUCTS: 2.18%
366,200 AIR PRODUCTS & CHEMICALS INCORPORATED 27,816,552
------------------
COMPUTERS - MEMORY DEVICES: 2.58%
1,970,100 EMC CORPORATION+ 32,841,567
------------------
COSMETICS, PERSONAL CARE: 2.66%
1,126,200 AVON PRODUCTS INCORPORATED 33,943,668
------------------
CRUDE PETROLEUM & NATURAL GAS: 3.03%
522,700 NOBLE ENERGY INCORPORATED 38,648,438
------------------
DEPOSITORY INSTITUTIONS: 2.72%
2,288,100 BANK OF AMERICA CORPORATION<< 34,733,358
------------------
E-COMMERCE/SERVICES: 7.23%
323,100 AMAZON.COM INCORPORATED+ 40,519,971
800,077 EBAY INCORPORATED+<< 18,417,773
170,100 PRICELINE.COM INCORPORATED+<< 33,229,035
92,166,779
------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 9.27%
933,554 BROADCOM CORPORATION CLASS A 24,944,563
2,086,100 CISCO SYSTEMS INCORPORATED+ 46,874,667
1,450,900 MARVELL TECHNOLOGY GROUP LIMITED+ 25,289,187
515,100 NETAPP INCORPORATED+ 15,004,863
397,400 NVIDIA Corporation+ 6,115,986
118,229,266
------------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT: 2.75%
804,100 ILLINOIS TOOL WORKS INCORPORATED 35,050,719
------------------
GENERAL MERCHANDISE STORES: 2.12%
711,700 TJX COMPANIES INCORPORATED 27,051,717
------------------
HEALTH SERVICES: 3.54%
538,700 EXPRESS SCRIPTS INCORPORATED+ 45,175,382
------------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 10.36%
410,249 APPLE INCORPORATED+ 78,817,038
728,308 INGERSOLL-RAND PLC<< 23,640,878
1,527,332 INTEL CORPORATION 29,630,241
132,088,157
------------------
Wells Fargo Advantage Large Cap Stock Funds 29
Portfolio of Investments--January 31, 2010 (Unaudited)
ENDEAVOR SELECT FUND
SHARES SECURITY NAME VALUE
- --------------- ------------- ------------------
INFORMATION & BUSINESS SERVICES: 6.28%
106,782 GOOGLE INCORPORATED CLASS A+ $ 56,532,526
1,569,480 YAHOO! INCORPORATED+ 23,557,895
80,090,421
------------------
MEDIA - COMMUNICATION: 3.12%
1,308,781 DIRECTV+ 39,721,503
------------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 2.34%
843,200 TYCO INTERNATIONAL LIMITED<< 29,874,576
------------------
MOTION PICTURES: 1.16%
499,700 WALT DISNEY COMPANY 14,766,135
------------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 5.84%
858,100 AMERICAN EXPRESS COMPANY 32,316,046
168,700 MASTERCARD INCORPORATED CLASS A<< 42,158,130
74,474,176
------------------
OIL & GAS FIELD SERVICES: 1.97%
296,073 TRANSOCEAN LIMITED+ 25,089,226
------------------
RETAIL: 0.26%
89,273 BEST BUY COMPANY INCORPORATED 3,271,855
------------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 1.27%
839,100 INVESCO LIMITED 16,194,630
------------------
SOFTWARE: 5.03%
2,275,400 MICROSOFT CORPORATION 64,120,772
------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS: 2.97%
748,200 COVIDIEN LIMITED 37,828,992
------------------
TELECOMMUNICATIONS: 6.41%
698,547 AMERICAN TOWER CORPORATION CLASS A+ 29,653,320
4,277,822 MOTOROLA INCORPORATED 26,308,605
656,454 QUALCOMM INCORPORATED 25,726,432
81,688,357
------------------
TRANSPORTATION BY AIR: 2.00%
2,080,900 DELTA AIR LINES INCORPORATED+<< 25,449,408
------------------
TOTAL COMMON STOCKS (COST $1,118,414,395) 1,252,187,055
------------------
COLLATERAL FOR SECURITIES LENDING: 12.33%
YIELD
--------
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.61%
7,807,702 DWS MONEY MARKET SERIES INSTITUTIONAL(u) 0.13% 7,807,702
------------------
INTEREST
PRINCIPAL RATE MATURITY DATE
- --------------- -------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 11.72%
$ 3,457,697 ABN AMRO NORTH AMERICA FINANCE INCORPORATED 0.18 02/08/2010 3,457,541
1,366,348 ALLIED IRISH BANKS NORTH AMERICA INCORPORATED 0.25 02/03/2010 1,366,348
836,539 AMSTEL FUNDING CORPORATION++(p) 0.60 02/05/2010 836,456
223,077 ANGLO IRISH BANK CORPORATION++ 0.24 02/03/2010 223,071
1,115,386 ANGLO IRISH BANK CORPORATION++ 0.24 02/04/2010 1,115,349
1,226,925 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/22/2010 1,226,776
30 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
ENDEAVOR SELECT FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 557,693 ANTALIS US FUNDING CORPORATION++(p) 0.19% 02/26/2010 $ 557,614
557,693 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/08/2010 557,665
836,539 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/19/2010 836,447
1,673,079 AUTOBAHN FUNDING COMPANY LLC++(p) 0.22 02/17/2010 1,672,895
1,450,002 AUTOBAHN FUNDING COMPANY LLC++(p) 0.23 02/24/2010 1,449,770
4,774,744 BANK OF AMERICA REPURCHASE AGREEMENT - 102%
COLLATERALIZED BY MORTGAGE
BACKED SECURITIES (MATURITY VALUE $4,774,792) 0.12 02/01/2010 4,774,744
2,007,695 BANK OF IRELAND 0.35 02/01/2010 2,007,695
1,171,155 BANK OF IRELAND 0.50 02/02/2010 1,171,155
3,123,081 BANK OF NOVA SCOTIA (HOUSTON) 0.18 02/16/2010 3,123,103
111,539 BEETHOVEN FUNDING CORPORATION++(p) 0.30 02/03/2010 111,535
446,154 BEETHOVEN FUNDING CORPORATION++(p) 0.32 02/02/2010 446,142
3,346,158 BNP PARIBAS (NEW YORK) 0.15 02/01/2010 3,346,156
2,515,976 BRYANT PARK FUNDING LLC++(p) 0.16 02/12/2010 2,515,831
250,962 BTM CAPITAL CORPORATION++ 0.26 02/03/2010 250,955
446,154 CALCASIEU PARISH LA+/-ss 0.35 12/01/2027 446,154
613,462 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY+/-ss 0.30 06/01/2028 613,462
295,298 COLORADO HOUSING & FINANCE AUTHORITY+/-ss 0.25 10/01/2038 295,298
3,123,081 CONCORD MINUTEMEN CAPITAL COMPANY++(p) 0.35 02/16/2010 3,122,565
892,309 COOK COUNTY IL+/-ss 0.25 11/01/2030 892,309
3,123,081 DANSKE BANK A/S COPENHAGEN 0.15 02/01/2010 3,123,081
2,007,695 DENVER CO CITY & COUNTY SCHOOL DISTRICT+/-ss 0.33 12/15/2037 2,007,695
3,123,081 DEUTSCHE BANK (CAYMAN) 0.12 02/01/2010 3,123,081
1,171,155 DEXIA BANK (GRAND CAYMAN) 0.22 02/02/2010 1,171,155
1,673,079 DEXIA DELAWARE LLC 0.21 02/04/2010 1,673,030
3,123,081 DNB NOR BANK ASA 0.13 02/01/2010 3,123,081
3,123,081 ENI FINANCE USA INCORPORATED++ 0.19 02/04/2010 3,122,998
1,003,847 ERASMUS CAPITAL CORPORATION++(p) 0.20 02/19/2010 1,003,736
1,226,925 ERASMUS CAPITAL CORPORATION++(p) 0.22 02/04/2010 1,226,887
1,673,079 FORTIS BANK NV SA 0.17 02/03/2010 1,673,079
1,450,002 FORTIS BANK NV SA 0.19 02/05/2010 1,450,002
2,788,465 GDF SUEZ++ 0.20 02/03/2010 2,788,403
4,139,978 GOLDMAN SACHS REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $4,140,019) 0.12 02/01/2010 4,139,978
3,234,619 GRAMPIAN FUNDING LLC++(p) 0.24 02/18/2010 3,234,218
7,331,740 GRYPHON FUNDING LIMITED(a)(i) 0.00 08/05/2010 2,870,376
1,561,540 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 05/01/2023 1,561,540
1,132,117 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 07/01/2034 1,132,117
184,039 HENRICO COUNTY VA ECONOMIC DEVELOPMENT AUTHORITY+/-ss 0.23 11/01/2042 184,039
1,673,079 HOUSTON TX UTILITY SYSTEM+/-ss 0.18 05/15/2034 1,673,079
557,693 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE+/-ss 0.22 07/01/2029 557,693
223,077 INDIANA MUNICIPAL POWER AGENCY+/-ss 0.24 01/01/2018 223,077
2,844,234 ING USA FUNDING LLC 0.17 02/09/2010 2,844,100
334,616 KANSAS CITY MO SPECIAL OBLIGATION+/-ss 0.24 04/15/2025 334,616
3,123,081 KBC BANK NV BRUSSELS 0.15 02/01/2010 3,123,081
3,457,697 LLOYDS TSB BANK PLC 0.20 02/04/2010 3,457,706
458,758 LMA AMERICAS LLC++(p) 0.18 02/11/2010 458,731
2,088,560 LMA AMERICAS LLC++(p) 0.18 02/12/2010 2,088,424
111,539 LOUIS DREYFUS CORPORATION 0.25 02/01/2010 111,537
3,686,351 MASSACHUSETTS HEFA+/-ss 0.19 10/01/2034 3,686,351
1,115,386 MATCHPOINT MASTER TRUST++(p) 0.17 02/22/2010 1,115,265
2,007,695 MATCHPOINT MASTER TRUST++(p) 0.17 02/26/2010 2,007,439
557,693 MONT BLANC CAPITAL CORPORATION++(p) 0.19 02/10/2010 557,661
401,539 MONTGOMERY COUNTY TN PUBLIC BUILDING+/-ss 0.21 02/01/2036 401,539
3,346,158 NATIXIS US FINANCE COMPANY LLC 0.21 02/10/2010 3,345,943
223,077 NEW JERSEY STATE TURNPIKE AUTHORITY+/-ss 0.24 01/01/2018 223,077
Wells Fargo Advantage Large Cap Stock Funds 31
Portfolio of Investments--January 31, 2010 (Unaudited)
ENDEAVOR SELECT FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 2,615,580 NEW YORK STATE DORMITORY AUTHORITY+/-ss 0.16% 07/01/2034 $ 2,615,580
1,940,772 NEWPORT BEACH CALIFORNIA REVENUE+/-ss 0.18 12/01/2040 1,940,772
2,231,887 NEWPORT FUNDING CORPORATION++(p) 0.20 02/16/2010 2,231,677
2,230,772 NIEUW AMSTERDAM RECEIVABLES CORPORATION++(p) 0.18 02/18/2010 2,230,560
651,943 NORTH DAKOTA HOUSING FINANCE AGENCY+/-ss 0.24 01/01/2034 651,943
2,230,772 REGENCY MARKETS #1 LLC++(p) 0.18 02/16/2010 2,230,582
306,731 ROMULUS FUNDING CORPORATION++(p) 0.28 02/18/2010 306,686
2,150,464 ROYAL BANK OF SCOTLAND PLC 0.17 02/03/2010 2,150,424
3,457,697 SCALDIS CAPITAL LIMITED++(p) 0.20 02/04/2010 3,457,600
3,123,081 SOCIETE GENERALE BANNON LLC 0.19 02/11/2010 3,123,081
223,077 SOCIETE GENERALE BANNON LLC 0.24 02/10/2010 223,080
2,900,004 SOLITAIRE FUNDING LLC++(p) 0.21 02/11/2010 2,899,801
3,123,081 SVENSKA HANDELSBANKEN (NEW YORK) 0.22 02/11/2010 3,123,133
1,939,433 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.17 02/25/2010 1,939,195
446,824 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.18 02/19/2010 446,779
2,618,592 TULIP FUNDING CORPORATION++(p) 0.16 02/10/2010 2,618,464
1,003,847 TULSA COUNTY OK INDUSTRIAL AUTHORITY REVENUE+/-ss 0.20 07/01/2032 1,003,847
3,569,235 UNICREDITO ITALIANO (NEW YORK) 0.22 02/08/2010 3,569,235
3,123,081 VALDEZ ALASKA MARINE TERM REVENUE+/-ss 0.18 07/01/2037 3,123,081
334,616 VERMONT STATE STUDENT ASSISTANCE CORPORATION+/-ss 0.22 12/15/2040 334,616
9,234,807 VFNC CORPORATION+++/-(a)(i) 0.46 09/30/2010 4,617,404
3,346,158 YORKTOWN CAPITAL LLC++(p) 0.19 02/03/2010 3,346,082
------------------
149,418,473
------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $156,352,041) 157,226,175
------------------
SHARES YIELD
- --------------- -------------
SHORT-TERM INVESTMENTS: 0.43%
MUTUAL FUNDS: 0.43%
5,456,877 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)~+++ 0.11 5,456,877
------------------
TOTAL SHORT-TERM INVESTMENTS (COST $5,456,877) 5,456,877
------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,280,223,313)* 110.98% 1,414,870,107
OTHER ASSETS AND LIABILITIES, NET (10.98) (139,998,992)
------ ------------------
TOTAL NET ASSETS 100.00% $ 1,274,871,115
------ ------------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
(u) Rate shown is the 7-day annualized yield at period end.
++ 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.
(p) Asset-backed commercial paper.
+/- 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.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
+++ Short-term security of an affiliate of the Fund with a cost of $5,456,877.
* Cost for federal income tax purposes is $1,300,042,815 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $171,445,028
Gross unrealized depreciation (56,617,736)
------------
Net unrealized appreciation $114,827,292
The accompanying notes are an integral part of these financial statements.
32 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
COMMON STOCKS: 99.50%
AEROSPACE, DEFENSE: 0.76%
169,000 UNITED TECHNOLOGIES CORPORATION $ 11,404,120
------------------
AMUSEMENT & RECREATION SERVICES: 0.15%
58,000 BALLY TECHNOLOGIES INCORPORATED+ 2,300,860
------------------
APPAREL & ACCESSORY STORES: 0.70%
330,000 URBAN OUTFITTERS INCORPORATED+ 10,418,100
------------------
BIOPHARMACEUTICALS: 4.98%
152,000 ACORDA THERAPEUTICS INCORPORATED+ 4,252,960
970,000 ALEXION PHARMACEUTICALS INCORPORATED<<+ 44,978,900
200,000 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 11,344,000
233,000 UNITED THERAPEUTICS CORPORATION+ 13,879,810
74,455,670
------------------
BUSINESS SERVICES: 12.61%
2,150,000 ARIBA INCORPORATED+ 27,068,500
21,600 BAIDU.COM INCORPORATED ADR+ 8,892,936
110,000 CAPELLA EDUCATION COMPANY+ 8,071,800
121,000 CHECK POINT SOFTWARE TECHNOLOGIES LIMITED<<+ 3,869,580
990,000 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 43,223,400
706,000 CONCUR TECHNOLOGIES INCORPORATED<<+ 27,992,900
162,000 F5 NETWORKS INCORPORATED+ 8,007,660
64,350 LONGTOP FINANCIAL TECHNOLOGIES LIMITED ADR+ 2,230,371
93,000 MEDASSETS INCORPORATED+ 1,882,320
146,000 SALESFORCE.COM INCORPORATED+ 9,278,300
145,000 SOLARWINDS INCORPORATED+ 2,817,350
1,102,000 SUCCESSFACTORS INCORPORATED+ 17,962,600
668,000 SYBASE INCORPORATED<<+ 27,167,560
188,465,277
------------------
CASINO & GAMING: 1.34%
542,000 WMS INDUSTRIES INCORPORATED+ 20,097,360
------------------
CHEMICALS & ALLIED PRODUCTS: 3.96%
262,000 AIR PRODUCTS & CHEMICALS INCORPORATED 19,901,520
120,000 AIRGAS INCORPORATED 5,071,200
260,000 ECOLAB INCORPORATED 11,414,000
86,000 MONSANTO COMPANY 6,525,680
215,500 PRAXAIR INCORPORATED 16,231,460
59,143,860
------------------
COMMUNICATIONS: 3.60%
463,977 ASIAINFO HOLDINGS INCORPORATED+ 11,089,050
175,000 EQUINIX INCORPORATED<<+ 16,840,250
433,000 LOOPNET INCORPORATED+ 4,061,540
250,000 NEUTRAL TANDEM INCORPORATION+ 3,865,000
546,000 NII HOLDINGS INCORPORATED+ 17,876,040
53,731,880
------------------
COMPUTER DATA SECURITY: 0.31%
273,050 FORTINET INCORPORATED+ 4,704,652
------------------
COMPUTERS - MEMORY DEVICES: 0.68%
610,000 EMC CORPORATION+ 10,168,700
------------------
Wells Fargo Advantage Large Cap Stock Funds 33
Portfolio of Investments--January 31, 2010 (Unaudited)
GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
COSMETICS, PERSONAL CARE: 0.85%
159,000 COLGATE-PALMOLIVE COMPANY $ 12,724,770
------------------
DEPOSITORY INSTITUTIONS: 0.23%
120,000 BANK OF NEW YORK MELLON CORPORATION 3,490,800
------------------
E-COMMERCE/SERVICES: 3.61%
96,500 AMAZON.COM INCORPORATED+ 12,102,065
214,000 PRICELINE.COM INCORPORATED<<+ 41,804,900
53,906,965
------------------
EATING & DRINKING PLACES: 1.16%
82,000 CHIPOTLE MEXICAN GRILL INCORPORATED<<+ 7,909,720
150,000 MCDONALD'S CORPORATION 9,364,500
17,274,220
------------------
EDUCATIONAL SERVICES: 1.25%
239,000 AMERICAN PUBLIC EDUCATION INCORPORATED<<+ 9,115,460
46,000 STRAYER EDUCATION INCORPORATED<< 9,557,880
18,673,340
------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 9.49%
1,660,000 CISCO SYSTEMS INCORPORATED+ 37,300,200
392,000 EMERSON ELECTRIC COMPANY 16,283,680
900,000 MICROCHIP TECHNOLOGY INCORPORATED<< 23,229,000
1,761,000 MONOLITHIC POWER SYSTEMS<<+ 36,311,820
210,000 NETAPP INCORPORATED+ 6,117,300
49,000 NETLOGIC MICROSYSTEMS INCORPORATED+ 2,066,781
487,000 SILICON LABORATORIES INCORPORATED<<+ 20,570,880
141,879,661
------------------
ELECTRONIC COMPUTERS: 1.37%
435,000 HEWLETT-PACKARD COMPANY 20,475,450
------------------
ENGINEERING: 1.04%
860,000 ABB LIMITED ADR 15,505,800
------------------
FOOD STORES: 0.38%
206,000 WHOLE FOODS MARKET INCORPORATED<<+ 5,607,320
------------------
GENERAL MERCHANDISE STORES: 1.35%
135,000 TARGET CORPORATION 6,921,450
248,000 WAL-MART STORES INCORPORATED 13,250,640
20,172,090
------------------
HEALTH SERVICES: 0.64%
114,000 EXPRESS SCRIPTS INCORPORATED+ 9,560,040
------------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 3.99%
222,000 APPLE INCORPORATED+ 42,650,640
310,000 ARCSIGHT INCORPORATED<<+ 7,362,500
35,000 BUCYRUS INTERNATIONAL INCORPORATED CLASS A 1,833,300
125,000 JOY GLOBAL INCORPORATED 5,717,500
91,000 RIVERBED TECHNOLOGY INCORPORATED+ 2,040,220
59,604,160
------------------
34 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
INFORMATION & BUSINESS SERVICES: 4.12%
116,300 GOOGLE INCORPORATED CLASS A<<+ $ 61,571,546
------------------
INSURANCE CARRIERS: 0.77%
325,000 METLIFE INCORPORATED 11,479,000
------------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 3.10%
5,000 ICON PLC ADR+ 124,200
350,000 MASIMO CORPORATION+ 9,716,000
374,000 METTLER-TOLEDO INTERNATIONAL INCORPORATED+ 36,453,780
46,293,980
------------------
MEDICAL EQUIPMENT & SUPPLIES: 2.48%
51,500 INTUITIVE SURGICAL INCORPORATED<<+ 16,895,090
535,000 ST. JUDE MEDICAL INCORPORATED+ 20,185,550
37,080,640
------------------
MEDICAL PRODUCTS: 2.42%
628,000 BAXTER INTERNATIONAL INCORPORATED 36,166,520
------------------
MISCELLANEOUS RETAIL: 2.30%
71,000 COSTCO WHOLESALE CORPORATION 4,077,530
485,000 DICK'S SPORTING GOODS INCORPORATED+ 10,849,450
917,000 HIBBETT SPORTS INCORPORATED<<+ 19,458,740
34,385,720
------------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 4.23%
141,000 MASTERCARD INCORPORATED CLASS A<< 35,235,900
341,000 VISA INCORPORATED CLASS A 27,972,230
63,208,130
------------------
OIL & GAS EXTRACTION: 5.10%
66,000 APACHE CORPORATION 6,518,820
210,000 ARENA RESOURCES INCORPORATED<<+ 8,051,400
1,280,000 BRIGHAM EXPLORATION COMPANY<<+ 16,691,200
344,800 CONCHO RESOURCES INCORPORATED+ 15,471,176
360,000 CONTINENTAL RESOURCES INCORPORATED<<+ 13,669,200
113,000 SCHLUMBERGER LIMITED 7,170,980
190,000 ULTRA PETROLEUM CORPORATION<<+ 8,728,600
76,301,376
------------------
PHARMACEUTICALS: 3.92%
515,000 ABBOTT LABORATORIES 27,264,100
136,000 AUXILIUM PHARMACEUTICALS INCORPORATED+ 3,829,760
462,000 SHIRE PLC ADR<< 27,535,200
58,629,060
------------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 4.63%
150,000 MSCI INCORPORATED+ 4,434,000
510,000 ROVI CORPORATION<<+ 14,723,700
693,000 SHUTTERFLY INCORPORATED+ 10,963,260
698,000 VISTAPRINT NV<<+ 39,094,980
69,215,940
------------------
Wells Fargo Advantage Large Cap Stock Funds 35
Portfolio of Investments--January 31, 2010 (Unaudited)
GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
RAILROAD TRANSPORTATION: 1.89%
338,000 NORFOLK SOUTHERN CORPORATION $ 15,906,280
205,000 UNION PACIFIC CORPORATION 12,402,500
28,308,780
------------------
RESTAURANTS: 0.52%
166,000 BUFFALO WILD WINGS INCORPORATED<<+ 7,770,460
------------------
RETAIL-INTERNET: 1.34%
322,000 NETFLIX INCORPORATED<<+ 20,044,500
------------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 4.55%
98,000 AMERIPRISE FINANCIAL INCORPORATED 3,747,520
410,000 CHARLES SCHWAB CORPORATION 7,498,900
82,000 GOLDMAN SACHS GROUP INCORPORATED 12,195,040
150,000 INVESCO LIMITED 2,895,000
200,000 MORGAN STANLEY 5,356,000
352,000 STATE STREET CORPORATION 15,093,760
1,194,000 TD AMERITRADE HOLDING CORPORATION+ 21,205,440
67,991,660
------------------
SOFTWARE: 0.85%
468,000 RED HAT INCORPORATED+ 12,738,960
------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS: 0.16%
48,000 COVIDIEN LIMITED 2,426,880
------------------
TELECOMMUNICATIONS: 1.11%
422,000 QUALCOMM INCORPORATED 16,538,180
------------------
TRAVEL & RECREATION: 0.51%
244,000 CTRIP.COM INTERNATIONAL LIMITED ADR+ 7,634,760
------------------
WHOLESALE TRADE NON-DURABLE GOODS: 1.05%
310,000 TRACTOR SUPPLY COMPANY+ 15,645,700
------------------
TOTAL COMMON STOCKS (COST $1,355,011,757) 1,487,196,887
------------------
COLLATERAL FOR SECURITIES LENDING: 12.72%
YIELD
--------
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.64%
9,543,835 DWS MONEY MARKET SERIES INSTITUTIONAL(u) 0.13% 9,543,835
------------------
INTEREST
PRINCIPAL RATE MATURITY DATE
--------- -------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 12.08%
$ 4,226,556 ABN AMRO NORTH AMERICA FINANCE INCORPORATED 0.18 02/08/2010 4,226,365
1,670,171 ALLIED IRISH BANKS NORTH AMERICA INCORPORATED 0.25 02/03/2010 1,670,171
1,022,554 AMSTEL FUNDING CORPORATION++(p) 0.60 02/05/2010 1,022,452
272,681 ANGLO IRISH BANK CORPORATION++ 0.24 02/03/2010 272,674
1,363,405 ANGLO IRISH BANK CORPORATION++ 0.24 02/04/2010 1,363,360
1,499,746 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/22/2010 1,499,564
681,703 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/26/2010 681,605
681,703 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/08/2010 681,668
1,022,554 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/19/2010 1,022,440
36 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
GROWTH FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 2,045,108 AUTOBAHN FUNDING COMPANY LLC++(p) 0.22% 02/17/2010 $ 2,044,883
1,772,427 AUTOBAHN FUNDING COMPANY LLC++(p) 0.23 02/24/2010 1,772,143
5,836,464 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $5,836,522) 0.12 02/01/2010 5,836,464
2,454,129 BANK OF IRELAND 0.35 02/01/2010 2,454,129
1,431,575 BANK OF IRELAND 0.50 02/02/2010 1,431,575
3,817,534 BANK OF NOVA SCOTIA (HOUSTON) 0.18 02/16/2010 3,817,561
136,341 BEETHOVEN FUNDING CORPORATION++(p) 0.30 02/03/2010 136,336
545,362 BEETHOVEN FUNDING CORPORATION++(p) 0.32 02/02/2010 545,347
4,090,215 BNP PARIBAS (NEW YORK) 0.15 02/01/2010 4,090,213
3,075,433 BRYANT PARK FUNDING LLC++(p) 0.16 02/12/2010 3,075,255
306,766 BTM CAPITAL CORPORATION++ 0.26 02/03/2010 306,757
545,362 CALCASIEU PARISH LA+/-ss 0.35 12/01/2027 545,362
749,873 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY+/-ss 0.30 06/01/2028 749,873
360,961 COLORADO HOUSING & Finance Authority+/-ss 0.25 10/01/2038 360,961
3,817,534 CONCORD MINUTEMEN CAPITAL COMPANY++(p) 0.35 02/16/2010 3,816,903
1,090,724 COOK COUNTY IL+/-ss 0.25 11/01/2030 1,090,724
3,817,534 DANSKE BANK A/S COPENHAGEN 0.15 02/01/2010 3,817,534
2,454,129 DENVER CO CITY & County School District+/-ss 0.33 12/15/2037 2,454,129
3,817,534 DEUTSCHE BANK (CAYMAN) 0.12 02/01/2010 3,817,534
1,431,575 DEXIA BANK (GRAND CAYMAN) 0.22 02/02/2010 1,431,575
2,045,108 DEXIA DELAWARE LLC 0.21 02/04/2010 2,045,048
3,817,534 DNB NOR BANK ASA 0.13 02/01/2010 3,817,534
3,817,534 ENI FINANCE USA INCORPORATED++ 0.19 02/04/2010 3,817,433
1,227,065 ERASMUS CAPITAL CORPORATION++(p) 0.20 02/19/2010 1,226,928
1,499,746 ERASMUS CAPITAL CORPORATION++(p) 0.22 02/04/2010 1,499,700
2,045,108 FORTIS BANK NV SA 0.17 02/03/2010 2,045,108
1,772,427 FORTIS BANK NV SA 0.19 02/05/2010 1,772,427
3,408,513 GDF SUEZ++ 0.20 02/03/2010 3,408,437
5,060,551 GOLDMAN SACHS REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $5,060,602) 0.12 02/01/2010 5,060,551
3,953,875 GRAMPIAN FUNDING LLC++(p) 0.24 02/18/2010 3,953,384
6,998,364 GRYPHON FUNDING LIMITED(a)(i) 0.00 08/05/2010 2,739,860
1,908,767 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 05/01/2023 1,908,767
1,383,856 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 07/01/2034 1,383,856
224,962 HENRICO COUNTY VA ECONOMIC DEVELOPMENT AUTHORITY+/-ss 0.23 11/01/2042 224,962
2,045,108 HOUSTON TX UTILITY SYSTEM+/-ss 0.18 05/15/2034 2,045,108
681,703 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE+/-ss 0.22 07/01/2029 681,703
272,681 INDIANA MUNICIPAL POWER AGENCY+/-ss 0.24 01/01/2018 272,681
3,476,683 ING USA FUNDING LLC 0.17 02/09/2010 3,476,519
409,022 KANSAS CITY MO SPECIAL OBLIGATION+/-ss 0.24 04/15/2025 409,022
3,817,534 KBC BANK NV BRUSSELS 0.15 02/01/2010 3,817,534
4,226,556 LLOYDS TSB BANK PLC 0.20 02/04/2010 4,226,567
560,768 LMA AMERICAS LLC++(p) 0.18 02/11/2010 560,735
2,552,976 LMA AMERICAS LLC++(p) 0.18 02/12/2010 2,552,810
136,341 LOUIS DREYFUS CORPORATION 0.25 02/01/2010 136,339
4,506,054 MASSACHUSETTS HEFA+/-ss 0.19 10/01/2034 4,506,054
1,363,405 MATCHPOINT MASTER TRUST++(p) 0.17 02/22/2010 1,363,257
2,454,129 MATCHPOINT MASTER TRUST++(p) 0.17 02/26/2010 2,453,816
681,703 MONT BLANC CAPITAL CORPORATION++(p) 0.19 02/10/2010 681,663
490,826 MONTGOMERY COUNTY TN PUBLIC BUILDING+/-ss 0.21 02/01/2036 490,826
4,090,215 NATIXIS US FINANCE COMPANY LLC 0.21 02/10/2010 4,089,953
272,681 NEW JERSEY STATE TURNPIKE AUTHORITY+/-ss 0.24 01/01/2018 272,681
3,197,185 NEW YORK STATE DORMITORY AUTHORITY+/-ss 0.16 07/01/2034 3,197,185
2,372,325 NEWPORT BEACH CALIFORNIA REVENUE+/-ss 0.18 12/01/2040 2,372,325
2,728,173 NEWPORT FUNDING CORPORATION++(p) 0.20 02/16/2010 2,727,916
Wells Fargo Advantage Large Cap Stock Funds 37
Portfolio of Investments--January 31, 2010 (Unaudited)
GROWTH FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 2,726,810 NIEUW AMSTERDAM RECEIVABLES CORPORATION++(p) 0.18% 02/18/2010 $ 2,726,551
796,910 NORTH DAKOTA HOUSING FINANCE AGENCY+/-ss 0.24 01/01/2034 796,910
2,726,810 REGENCY MARKETS #1 LLC++(p) 0.18 02/16/2010 2,726,578
374,936 ROMULUS FUNDING CORPORATION++(p) 0.28 02/18/2010 374,881
2,628,645 ROYAL BANK OF SCOTLAND PLC 0.17 02/03/2010 2,628,595
4,226,556 SCALDIS CAPITAL LIMITED++(p) 0.20 02/04/2010 4,226,438
3,817,534 SOCIETE GENERALE BANNON LLC 0.19 02/11/2010 3,817,534
272,681 SOCIETE GENERALE BANNON LLC 0.24 02/10/2010 272,684
3,544,853 SOLITAIRE FUNDING LLC++(p) 0.21 02/11/2010 3,544,605
3,817,534 SVENSKA HANDELSBANKEN (NEW YORK) 0.22 02/11/2010 3,817,598
2,370,689 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.17 02/25/2010 2,370,398
546,180 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.18 02/19/2010 546,125
3,200,866 TULIP FUNDING CORPORATION++(p) 0.16 02/10/2010 3,200,710
1,227,065 TULSA COUNTY OK INDUSTRIAL AUTHORITY REVENUE+/-ss 0.20 07/01/2032 1,227,065
4,362,896 UNICREDITO ITALIANO (NEW YORK) 0.22 02/08/2010 4,362,896
3,817,534 VALDEZ ALASKA MARINE TERM REVENUE+/-ss 0.18 07/01/2037 3,817,534
409,022 VERMONT STATE STUDENT ASSISTANCE CORPORATION+/-ss 0.22 12/15/2040 409,022
8,814,899 VFNC CORPORATION+++/-(a)(i) 0.46 09/30/2010 4,407,449
4,090,215 YORKTOWN CAPITAL LLC++(p) 0.19 02/03/2010 4,090,127
180,637,946
------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $189,347,394) 190,181,781
------------------
SHARES YIELD
--------- --------
SHORT-TERM INVESTMENTS: 0.83%
MUTUAL FUNDS: 0.83%
12,332,623 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)~+++ 0.11 12,332,623
------------------
TOTAL SHORT-TERM INVESTMENTS (COST $12,332,623) 12,332,623
------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,556,691,774)* 113.05% 1,689,711,291
OTHER ASSETS AND LIABILITIES, NET (13.05) (195,109,969)
------ ------------------
TOTAL NET ASSETS 100.00% $ 1,494,601,322
------ ------------------
- ----------
<< All or a portion of this security is on loan.
+ Non-income earning securities.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
(p) Asset-backed commercial paper.
+/- 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.
(i) Illiquid security.
(u) Rate shown is the 7-day annualized yield at period end.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
+++ Short-term security of an affiliate of the Fund with a cost of $12,332,623.
* Cost for federal income tax purposes is $1,564,687,409 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $179,869,923
Gross unrealized depreciation (54,846,041)
------------
Net unrealized appreciation $125,023,882
------------
The accompanying notes are an integral part of these financial statements.
38 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE CAP GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
COMMON STOCKS: 99.31%
AEROSPACE, DEFENSE: 1.10%
46,000 UNITED TECHNOLOGIES CORPORATION $ 3,104,080
------------------
APPAREL & ACCESSORY STORES: 0.77%
43,000 KOHL'S CORPORATION+ 2,165,910
------------------
BIOPHARMACEUTICALS: 2.55%
55,000 GILEAD SCIENCES INCORPORATED+ 2,654,850
80,000 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 4,537,600
7,192,450
------------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS: 0.77%
100,000 LOWE'S COMPANIES INCORPORATED 2,165,000
------------------
BUSINESS SERVICES: 6.81%
250,000 ACTIVISION BLIZZARD INCORPORATED 2,540,000
191,000 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 8,339,060
160,000 ORACLE CORPORATION 3,689,600
48,000 SALESFORCE.COM INCORPORATED+ 3,050,400
35,000 VMWARE INCORPORATED+ 1,589,350
19,208,410
------------------
CHEMICALS & ALLIED PRODUCTS: 5.35%
56,000 AIR PRODUCTS & CHEMICALS INCORPORATED 4,253,760
85,000 ECOLAB INCORPORATED 3,731,500
47,000 MONSANTO COMPANY 3,566,360
47,000 PRAXAIR INCORPORATED 3,540,040
15,091,660
------------------
COMMERCIAL SERVICES: 0.64%
62,000 PAYCHEX INCORPORATED<< 1,797,380
------------------
COMMUNICATIONS: 2.02%
145,000 QUALCOMM INCORPORATED 5,682,550
------------------
COMPUTERS - MEMORY DEVICES: 1.00%
169,000 EMC CORPORATION+ 2,817,230
------------------
COSMETICS, PERSONAL CARE: 1.62%
57,000 COLGATE-PALMOLIVE COMPANY 4,561,710
------------------
DEPOSITORY INSTITUTIONS: 1.03%
30,000 BANK OF NEW YORK MELLON CORPORATION 872,700
40,000 NORTHERN TRUST CORPORATION 2,020,800
2,893,500
------------------
E-COMMERCE/SERVICES: 2.41%
30,000 AMAZON.COM INCORPORATED+ 3,762,300
132,000 EBAY INCORPORATED+ 3,038,640
6,800,940
------------------
EATING & DRINKING PLACES: 1.15%
52,000 MCDONALD'S CORPORATION 3,246,360
------------------
Wells Fargo Advantage Large Cap Stock Funds 39
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE CAP GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
EDUCATIONAL SERVICES: 0.82%
14,000 APOLLO GROUP INCORPORATED CLASS A+ $ 848,260
7,100 STRAYER EDUCATION INCORPORATED<< 1,475,238
2,323,498
------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 8.11%
56,000 ANALOG DEVICES INCORPORATED 1,509,760
105,000 BROADCOM CORPORATION CLASS A 2,805,600
388,000 CISCO SYSTEMS INCORPORATED+ 8,718,360
125,000 EMERSON ELECTRIC COMPANY 5,192,500
180,000 MICROCHIP TECHNOLOGY INCORPORATED<< 4,645,800
22,872,020
------------------
ELECTRONIC COMPUTERS: 6.18%
85,000 ACCENTURE PLC 3,484,150
117,000 HEWLETT-PACKARD COMPANY 5,507,190
69,000 INTERNATIONAL BUSINESS MACHINES CORPORATION 8,444,910
17,436,250
------------------
ENGINEERING: 1.31%
205,000 ABB LIMITED ADR 3,696,150
------------------
FOOTWEAR: 1.20%
53,000 NIKE INCORPORATED CLASS B 3,378,750
------------------
GENERAL MERCHANDISE STORES: 3.98%
120,000 TARGET CORPORATION 6,152,400
95,000 WAL-MART STORES INCORPORATED 5,075,850
11,228,250
------------------
HEALTH SERVICES: 1.16%
28,000 EXPRESS SCRIPTS INCORPORATED+ 2,348,080
15,000 MEDCO HEALTH SOLUTIONS INCORPORATED+ 922,200
3,270,280
------------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 5.44%
65,500 APPLE INCORPORATED+ 12,583,860
30,000 JOY GLOBAL INCORPORATED 1,372,200
22,000 RESEARCH IN MOTION LIMITED+ 1,385,120
15,341,180
------------------
INFORMATION & BUSINESS SERVICES: 4.98%
26,500 GOOGLE INCORPORATED CLASS A+ 14,029,630
------------------
INSURANCE CARRIERS: 0.81%
65,000 METLIFE INCORPORATED 2,295,800
------------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 0.49%
30,000 THERMO FISHER SCIENTIFIC INCORPORATED+ 1,384,500
------------------
MEDICAL EQUIPMENT & SUPPLIES: 2.43%
9,500 INTUITIVE SURGICAL INCORPORATED<<+ 3,116,570
99,000 ST. JUDE MEDICAL INCORPORATED+ 3,735,270
6,851,840
------------------
40 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE CAP GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
MEDICAL PRODUCTS: 3.35%
48,000 ALLERGAN INCORPORATED $ 2,760,000
116,000 BAXTER INTERNATIONAL INCORPORATED 6,680,440
9,440,440
------------------
METAL MINING: 1.06%
45,000 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B 3,001,050
------------------
MISCELLANEOUS RETAIL: 2.83%
50,000 COSTCO WHOLESALE CORPORATION 2,871,500
130,000 STAPLES INCORPORATED 3,049,800
57,000 WALGREEN COMPANY 2,054,850
7,976,150
------------------
MOTION PICTURES: 0.79%
75,000 WALT DISNEY COMPANY 2,216,250
------------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 4.96%
30,000 MASTERCARD INCORPORATED CLASS A<< 7,497,000
79,000 VISA INCORPORATED CLASS A 6,480,370
13,977,370
------------------
OIL & GAS EXTRACTION: 5.91%
44,000 APACHE CORPORATION 4,345,880
32,000 OCCIDENTAL PETROLEUM CORPORATION 2,506,880
85,000 SCHLUMBERGER LIMITED 5,394,100
60,000 SOUTHWESTERN ENERGY COMPANY+ 2,572,800
40,000 ULTRA PETROLEUM CORPORATION+ 1,837,600
16,657,260
------------------
OIL & GAS FIELD SERVICES: 0.69%
23,000 TRANSOCEAN LIMITED+ 1,949,020
------------------
PHARMACEUTICALS: 4.28%
111,000 ABBOTT LABORATORIES 5,876,340
43,000 AMERISOURCEBERGEN CORPORATION 1,172,180
84,000 SHIRE PLC ADR<< 5,006,400
12,054,920
------------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 1.24%
120,000 VIACOM INCORPORATED CLASS B+ 3,496,800
------------------
RAILROAD TRANSPORTATION: 2.28%
70,000 NORFOLK SOUTHERN CORPORATION 3,294,200
52,000 UNION PACIFIC CORPORATION 3,146,000
6,440,200
------------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 4.43%
42,000 AMERIPRISE FINANCIAL INCORPORATED 1,606,080
165,000 CHARLES SCHWAB CORPORATION 3,017,850
3,000 CME GROUP INCORPORATED 860,460
15,000 GOLDMAN SACHS GROUP INCORPORATED 2,230,800
73,000 STATE STREET CORPORATION 3,130,240
93,000 TD AMERITRADE HOLDING CORPORATION+ 1,651,680
12,497,110
------------------
Wells Fargo Advantage Large Cap Stock Funds 41
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE CAP GROWTH FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
SOFTWARE: 0.98%
35,000 ADOBE SYSTEMS INCORPORATED+ $ 1,130,500
60,000 RED HAT INCORPORATED+ 1,633,200
2,763,700
------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS: 1.13%
63,000 COVIDIEN LIMITED 3,185,280
------------------
TRANSPORTATION SERVICES: 1.25%
62,000 C.H. ROBINSON WORLDWIDE INCORPORATED 3,511,060
------------------
TOTAL COMMON STOCKS (COST $278,073,702) 280,001,938
------------------
COLLATERAL FOR SECURITIES LENDING: 6.74%
YIELD
--------
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.32%
906,453 DWS MONEY MARKET SERIES INSTITUTIONAL(u) 0.13% 906,453
------------------
INTEREST
PRINCIPAL RATE MATURITY DATE
--------- -------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 6.42%
$ 401,429 ABN AMRO NORTH AMERICA FINANCE INCORPORATED 0.18 02/08/2010 401,411
158,629 ALLIED IRISH BANKS NORTH AMERICA INCORPORATED 0.25 02/03/2010 158,629
97,120 AMSTEL FUNDING CORPORATION++(p) 0.60 02/05/2010 97,110
25,899 ANGLO IRISH BANK CORPORATION++ 0.24 02/03/2010 25,898
129,493 ANGLO IRISH BANK CORPORATION++ 0.24 02/04/2010 129,489
142,443 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/22/2010 142,425
64,747 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/26/2010 64,737
64,747 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/08/2010 64,743
97,120 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/19/2010 97,109
194,240 AUTOBAHN FUNDING COMPANY LLC++(p) 0.22 02/17/2010 194,219
168,341 AUTOBAHN FUNDING COMPANY LLC++(p) 0.23 02/24/2010 168,314
554,335 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $554,341) 0.12 02/01/2010 554,335
233,088 BANK OF IRELAND 0.35 02/01/2010 233,088
135,968 BANK OF IRELAND 0.50 02/02/2010 135,968
362,581 BANK OF NOVA SCOTIA (HOUSTON) 0.18 02/16/2010 362,584
12,949 BEETHOVEN FUNDING CORPORATION++(p) 0.30 02/03/2010 12,949
51,797 BEETHOVEN FUNDING CORPORATION++(p) 0.32 02/02/2010 51,796
388,480 BNP PARIBAS (NEW YORK) 0.15 02/01/2010 388,480
292,098 BRYANT PARK FUNDING LLC++(p) 0.16 02/12/2010 292,081
29,136 BTM CAPITAL CORPORATION++ 0.26 02/03/2010 29,135
51,797 CALCASIEU PARISH LA+/-ss 0.35 12/01/2027 51,797
71,221 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY+/-ss 0.30 06/01/2028 71,221
34,283 COLORADO HOUSING & FINANCE AUTHORITY+/-ss 0.25 10/01/2038 34,283
362,581 CONCORD MINUTEMEN CAPITAL COMPANY++(p) 0.35 02/16/2010 362,521
103,595 COOK COUNTY IL+/-ss 0.25 11/01/2030 103,595
362,581 DANSKE BANK A/S COPENHAGEN 0.15 02/01/2010 362,581
233,088 DENVER CO CITY & COUNTY SCHOOL DISTRICT+/-ss 0.33 12/15/2037 233,088
362,581 DEUTSCHE BANK (CAYMAN) 0.12 02/01/2010 362,581
135,968 DEXIA BANK (GRAND CAYMAN) 0.22 02/02/2010 135,968
194,240 DEXIA DELAWARE LLC 0.21 02/04/2010 194,234
362,581 DNB NOR BANK ASA 0.13 02/01/2010 362,581
362,581 ENI FINANCE USA INCORPORATED++ 0.19 02/04/2010 362,572
116,544 ERASMUS CAPITAL CORPORATION++(p) 0.20 02/19/2010 116,531
142,443 ERASMUS CAPITAL CORPORATION++(p) 0.22 02/04/2010 142,438
194,240 FORTIS BANK NV SA 0.17 02/03/2010 194,240
42 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE CAP GROWTH FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 168,341 FORTIS BANK NV SA 0.19% 02/05/2010 $ 168,341
323,733 GDF SUEZ++ 0.20 02/03/2010 323,726
480,640 GOLDMAN SACHS REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $480,645) 0.12 02/01/2010 480,640
375,530 GRAMPIAN FUNDING LLC++(p) 0.24 02/18/2010 375,484
1,591,983 GRYPHON FUNDING LIMITED(a)(i) 0.00 08/05/2010 623,261
181,291 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 05/01/2023 181,291
131,436 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 07/01/2034 131,436
21,366 HENRICO COUNTY VA ECONOMIC DEVELOPMENT AUTHORITY+/-ss 0.23 11/01/2042 21,366
194,240 HOUSTON TX UTILITY SYSTEM+/-ss 0.18 05/15/2034 194,240
64,747 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE+/-ss 0.22 07/01/2029 64,747
25,899 INDIANA MUNICIPAL POWER AGENCY+/-ss 0.24 01/01/2018 25,899
330,208 ING USA FUNDING LLC 0.17 02/09/2010 330,192
38,848 KANSAS CITY MO SPECIAL OBLIGATION+/-ss 0.24 04/15/2025 38,848
362,581 KBC BANK NV BRUSSELS 0.15 02/01/2010 362,581
401,429 LLOYDS TSB BANK PLC 0.20 02/04/2010 401,430
53,261 LMA AMERICAS LLC++(p) 0.18 02/11/2010 53,257
242,476 LMA AMERICAS LLC++(p) 0.18 02/12/2010 242,460
12,949 LOUIS DREYFUS CORPORATION 0.25 02/01/2010 12,949
427,975 MASSACHUSETTS HEFA+/-ss 0.19 10/01/2034 427,975
129,493 MATCHPOINT MASTER TRUST++(p) 0.17 02/22/2010 129,479
233,088 MATCHPOINT MASTER TRUST++(p) 0.17 02/26/2010 233,058
64,747 MONT BLANC CAPITAL CORPORATION++(p) 0.19 02/10/2010 64,743
46,618 MONTGOMERY COUNTY TN PUBLIC BUILDING+/-ss 0.21 02/01/2036 46,618
388,480 NATIXIS US FINANCE COMPANY LLC 0.21 02/10/2010 388,455
25,899 NEW JERSEY STATE TURNPIKE AUTHORITY+/-ss 0.24 01/01/2018 25,899
303,662 NEW YORK STATE DORMITORY AUTHORITY+/-ss 0.16 07/01/2034 303,662
225,318 NEWPORT BEACH CALIFORNIA REVENUE+/-ss 0.18 12/01/2040 225,318
259,116 NEWPORT FUNDING CORPORATION++(p) 0.20 02/16/2010 259,092
258,987 NIEUW AMSTERDAM RECEIVABLES CORPORATION++(p) 0.18 02/18/2010 258,962
75,689 NORTH DAKOTA HOUSING FINANCE AGENCY+/-ss 0.24 01/01/2034 75,689
258,987 REGENCY MARKETS #1 LLC++(p) 0.18 02/16/2010 258,965
35,611 ROMULUS FUNDING CORPORATION++(p) 0.28 02/18/2010 35,605
249,663 ROYAL BANK OF SCOTLAND PLC 0.17 02/03/2010 249,658
401,429 SCALDIS CAPITAL LIMITED++(p) 0.20 02/04/2010 401,418
362,581 SOCIETE GENERALE BANNON LLC 0.19 02/11/2010 362,581
25,899 SOCIETE GENERALE BANNON LLC 0.24 02/10/2010 25,899
336,683 SOLITAIRE FUNDING LLC++(p) 0.21 02/11/2010 336,659
362,581 SVENSKA HANDELSBANKEN (NEW YORK) 0.22 02/11/2010 362,587
225,163 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.17 02/25/2010 225,135
51,875 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.18 02/19/2010 51,870
304,011 TULIP FUNDING CORPORATION++(p) 0.16 02/10/2010 303,996
116,544 TULSA COUNTY OK INDUSTRIAL AUTHORITY REVENUE+/-ss 0.20 07/01/2032 116,544
414,378 UNICREDITO ITALIANO (NEW YORK) 0.22 02/08/2010 414,378
362,581 VALDEZ ALASKA MARINE TERM REVENUE+/-ss 0.18 07/01/2037 362,581
38,848 VERMONT STATE STUDENT ASSISTANCE CORPORATION+/-ss 0.22 12/15/2040 38,848
2,005,207 VFNC CORPORATION+++/-(a)(i) 0.46 09/30/2010 1,002,603
388,480 YORKTOWN CAPITAL LLC++(p) 0.19 02/03/2010 388,475
18,103,631
------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $18,820,278) 19,010,084
------------------
Wells Fargo Advantage Large Cap Stock Funds 43
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE CAP GROWTH FUND
SHARES SECURITY NAME YIELD VALUE
- --------------- ------------- -------- ------------------
SHORT-TERM INVESTMENTS: 0.27%
MUTUAL FUNDS: 0.27%
746,174 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)~+++ 0.11% $ 746,174
------------------
TOTAL SHORT-TERM INVESTMENTS (COST $746,174) 746,174
------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $297,640,154)* 106.32% 299,758,196
OTHER ASSETS AND LIABILITIES, NET (6.32) (17,815,989)
------ ------------------
TOTAL NET ASSETS 100.00% $ 281,942,207
------ ------------------
- ----------
<< All or a portion of this security is on loan.
+ Non-income earning securities.
(u) Rate shown is the 7-day annualized yield at period end.
++ 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.
(p) Asset-backed commercial paper.
+/- 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.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
+++ Short-term security of an affiliate of the Fund with a cost of $746,174.
* Cost for federal income tax purposes is $299,472,435 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 19,980,329
Gross unrealized depreciation (19,694,568)
------------
Net unrealized appreciation $ 285,761
The accompanying notes are an integral part of these financial statements.
44 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY CORE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
COMMON STOCKS: 99.34%
AGRICULTURE: 0.61%
32,000 DEERE & COMPANY $ 1,598,400
------------------
AUTO PARTS & EQUIPMENT: 2.77%
262,000 JOHNSON CONTROLS INCORPORATED 7,291,460
------------------
BEVERAGES: 0.33%
16,000 THE COCA-COLA COMPANY 868,000
------------------
BIOPHARMACEUTICALS: 1.69%
82,000 GENZYME CORPORATION+ 4,449,320
------------------
BUSINESS SERVICES: 3.41%
575,000 MONSTER WORLDWIDE INCORPORATED+ 8,964,250
------------------
COSMETICS, PERSONAL CARE: 1.12%
48,000 PROCTER & GAMBLE COMPANY 2,954,400
------------------
DEPOSITORY INSTITUTIONS: 12.52%
402,479 BANK OF AMERICA CORPORATION 6,109,631
338,000 BANK OF NEW YORK MELLON CORPORATION 9,832,420
214,124 JPMORGAN CHASE & COMPANY 8,337,989
465,800 WESTERN UNION COMPANY 8,635,932
32,915,972
------------------
E-COMMERCE/SERVICES: 3.28%
375,000 EBAY INCORPORATED+ 8,632,500
------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 13.66%
238,000 ANALOG DEVICES INCORPORATED 6,416,480
371,000 CISCO SYSTEMS INCORPORATED+ 8,336,370
400,000 CORNING INCORPORATED 7,232,000
367,000 NOVELLUS SYSTEMS INCORPORATED+ 7,670,300
251,475 TYCO ELECTRONICS LIMITED 6,256,698
35,911,848
------------------
GENERAL MERCHANDISE STORES: 1.91%
94,000 WAL-MART STORES INCORPORATED 5,022,420
------------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 2.94%
600,000 DELL INCORPORATED+ 7,740,000
------------------
INFORMATION & BUSINESS SERVICES: 1.27%
222,700 YAHOO! INCORPORATED+ 3,342,727
------------------
MEDICAL EQUIPMENT & SUPPLIES: 2.81%
62,000 MEDTRONIC INCORPORATED 2,659,180
45,000 ST. JUDE MEDICAL INCORPORATED+ 1,697,850
54,000 ZIMMER HOLDINGS INCORPORATED+ 3,041,280
7,398,310
------------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 3.27%
243,000 TYCO INTERNATIONAL LIMITED<< 8,609,490
------------------
MISCELLANEOUS RETAIL: 3.65%
409,000 STAPLES INCORPORATED 9,595,140
------------------
Wells Fargo Advantage Large Cap Stock Funds 45
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY CORE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
MISCELLANEOUS SERVICES: 1.09%
36,400 DUN & BRADSTREET CORPORATION $ 2,874,508
------------------
MOTION PICTURES: 3.15%
280,000 WALT DISNEY COMPANY 8,274,000
------------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 2.43%
170,000 AMERICAN EXPRESS COMPANY 6,402,200
------------------
OIL & GAS EXTRACTION: 3.89%
147,000 DEVON ENERGY CORPORATION 9,835,770
8,600 TIDEWATER INCORPORATED 403,469
10,239,239
------------------
PETROLEUM REFINING & RELATED INDUSTRIES: 8.59%
96,000 CHEVRON CORPORATION 6,923,520
173,000 CONOCOPHILLIPS 8,304,000
399,000 VALERO ENERGY CORPORATION 7,349,580
22,577,100
------------------
PHARMACEUTICALS: 2.92%
315,000 BRISTOL-MYERS SQUIBB COMPANY 7,673,400
------------------
PRIMARY METAL INDUSTRIES: 3.06%
632,000 ALCOA INCORPORATED 8,045,360
------------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 3.98%
295,000 MCGRAW-HILL COMPANIES INCORPORATED 10,457,750
------------------
RETAIL-DRUG STORES: 3.15%
230,000 WALGREEN COMPANY 8,291,500
------------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 3.58%
255,000 MORGAN STANLEY 6,828,900
60,000 STATE STREET CORPORATION 2,572,800
9,401,700
------------------
SOFTWARE: 3.14%
293,000 MICROSOFT CORPORATION 8,256,740
------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS: 2.29%
119,000 COVIDIEN LIMITED 6,016,640
------------------
TRAVEL & RECREATION: 2.83%
223,500 CARNIVAL CORPORATION 7,449,255
------------------
TOTAL COMMON STOCKS (COST $268,360,303) 261,253,629
------------------
COLLATERAL FOR SECURITIES LENDING: 1.23%
YIELD
------
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.04%
90,447 DWS MONEY MARKET SERIES INSTITUTIONAL(u) 0.13% 90,447
------------------
INTEREST
PRINCIPAL RATE MATURITY DATE
--------- -------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 1.19%
$ 40,055 ABN AMRO NORTH AMERICA FINANCE INCORPORATED 0.18 02/08/2010 40,053
15,828 ALLIED IRISH BANKS NORTH AMERICA INCORPORATED 0.25 02/03/2010 15,828
9,691 AMSTEL FUNDING CORPORATION++(p) 0.60 02/05/2010 9,690
2,584 ANGLO IRISH BANK CORPORATION++ 0.24 02/03/2010 2,584
46 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY CORE FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 12,921 ANGLO IRISH BANK CORPORATION++ 0.24% 02/04/2010 $ 12,921
14,213 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/22/2010 14,211
6,460 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/26/2010 6,460
6,460 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/08/2010 6,460
9,691 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/19/2010 9,690
19,381 AUTOBAHN FUNDING COMPANY LLC++(p) 0.22 02/17/2010 19,379
16,797 AUTOBAHN FUNDING COMPANY LLC++(p) 0.23 02/24/2010 16,795
55,312 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $55,313) 0.12 02/01/2010 55,312
23,258 BANK OF IRELAND 0.35 02/01/2010 23,258
13,567 BANK OF IRELAND 0.50 02/02/2010 13,567
36,179 BANK OF NOVA SCOTIA (HOUSTON) 0.18 02/16/2010 36,179
1,292 BEETHOVEN FUNDING CORPORATION++(p) 0.30 02/03/2010 1,292
5,168 BEETHOVEN FUNDING CORPORATION++(p) 0.32 02/02/2010 5,168
38,763 BNP PARIBAS (NEW YORK) 0.15 02/01/2010 38,763
29,146 BRYANT PARK FUNDING LLC++(p) 0.16 02/12/2010 29,144
2,907 BTM CAPITAL CORPORATION++ 0.26 02/03/2010 2,907
5,168 CALCASIEU PARISH LA+/-ss 0.35 12/01/2027 5,168
7,107 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY+/-ss 0.30 06/01/2028 7,107
3,421 COLORADO HOUSING & FINANCE AUTHORITY+/-ss 0.25 10/01/2038 3,421
36,179 CONCORD MINUTEMEN CAPITAL COMPANY++(p) 0.35 02/16/2010 36,173
10,337 COOK COUNTY IL+/-ss 0.25 11/01/2030 10,337
36,179 DANSKE BANK A/S COPENHAGEN 0.15 02/01/2010 36,179
23,258 DENVER CO CITY & COUNTY SCHOOL DISTRICT+/-ss 0.33 12/15/2037 23,258
36,179 DEUTSCHE BANK (CAYMAN) 0.12 02/01/2010 36,179
13,567 DEXIA BANK (GRAND CAYMAN) 0.22 02/02/2010 13,567
19,381 DEXIA DELAWARE LLC 0.21 02/04/2010 19,381
36,179 DNB NOR BANK ASA 0.13 02/01/2010 36,179
36,179 ENI FINANCE USA INCORPORATED++ 0.19 02/04/2010 36,178
11,629 ERASMUS CAPITAL CORPORATION++(p) 0.20 02/19/2010 11,628
14,213 ERASMUS CAPITAL CORPORATION++(p) 0.22 02/04/2010 14,213
19,381 FORTIS BANK NV SA 0.17 02/03/2010 19,381
16,797 FORTIS BANK NV SA 0.19 02/05/2010 16,797
32,302 GDF SUEZ++ 0.20 02/03/2010 32,302
47,959 GOLDMAN SACHS REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $47,959) 0.12 02/01/2010 47,959
37,471 GRAMPIAN FUNDING LLC++(p) 0.24 02/18/2010 37,466
1,456,364 GRYPHON FUNDING LIMITED(a)(i) 0.00 08/05/2010 570,166
18,089 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 05/01/2023 18,089
13,115 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 07/01/2034 13,115
2,132 HENRICO COUNTY VA ECONOMIC DEVELOPMENT AUTHORITY+/-ss 0.23 11/01/2042 2,132
19,381 HOUSTON TX UTILITY SYSTEM+/-ss 0.18 05/15/2034 19,381
6,460 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE+/-ss 0.22 07/01/2029 6,460
2,584 INDIANA MUNICIPAL POWER AGENCY+/-ss 0.24 01/01/2018 2,584
32,949 ING USA FUNDING LLC 0.17 02/09/2010 32,947
3,876 KANSAS CITY MO SPECIAL OBLIGATION+/-ss 0.24 04/15/2025 3,876
36,179 KBC BANK NV BRUSSELS 0.15 02/01/2010 36,179
40,055 LLOYDS TSB BANK PLC 0.20 02/04/2010 40,055
5,314 LMA AMERICAS LLC++(p) 0.18 02/11/2010 5,314
24,195 LMA AMERICAS LLC++(p) 0.18 02/12/2010 24,193
1,292 LOUIS DREYFUS CORPORATION 0.25 02/01/2010 1,292
42,704 MASSACHUSETTS HEFA+/-ss 0.19 10/01/2034 42,704
12,921 MATCHPOINT MASTER TRUST++(p) 0.17 02/22/2010 12,920
23,258 MATCHPOINT MASTER TRUST++(p) 0.17 02/26/2010 23,255
6,460 MONT BLANC CAPITAL CORPORATION++(p) 0.19 02/10/2010 6,460
4,652 MONTGOMERY COUNTY TN PUBLIC BUILDING+/-ss 0.21 02/01/2036 4,652
Wells Fargo Advantage Large Cap Stock Funds 47
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY CORE FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 38,763 NATIXIS US FINANCE COMPANY LLC 0.21% 02/10/2010 $ 38,760
2,584 NEW JERSEY STATE TURNPIKE AUTHORITY+/-ss 0.24 01/01/2018 2,584
30,300 NEW YORK STATE DORMITORY AUTHORITY+/-ss 0.16 07/01/2034 30,300
22,483 NEWPORT BEACH CALIFORNIA REVENUE+/-ss 0.18 12/01/2040 22,483
25,855 NEWPORT FUNDING CORPORATION++(p) 0.20 02/16/2010 25,852
25,842 NIEUW AMSTERDAM RECEIVABLES CORPORATION++(p) 0.18 02/18/2010 25,840
7,552 NORTH DAKOTA HOUSING FINANCE AGENCY+/-ss 0.24 01/01/2034 7,552
25,842 REGENCY MARKETS #1 LLC++(p) 0.18 02/16/2010 25,840
3,553 ROMULUS FUNDING CORPORATION++(p) 0.28 02/18/2010 3,553
24,912 ROYAL BANK OF SCOTLAND PLC 0.17 02/03/2010 24,911
40,055 SCALDIS CAPITAL LIMITED++(p) 0.20 02/04/2010 40,054
36,179 SOCIETE GENERALE BANNON LLC 0.19 02/11/2010 36,179
2,584 SOCIETE GENERALE BANNON LLC 0.24 02/10/2010 2,584
33,595 SOLITAIRE FUNDING LLC++(p) 0.21 02/11/2010 33,592
36,179 SVENSKA HANDELSBANKEN (NEW YORK) 0.22 02/11/2010 36,179
22,467 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.17 02/25/2010 22,464
5,176 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.18 02/19/2010 5,176
30,335 TULIP FUNDING CORPORATION++(p) 0.16 02/10/2010 30,333
11,629 TULSA COUNTY OK INDUSTRIAL AUTHORITY REVENUE+/-ss 0.20 07/01/2032 11,629
41,347 UNICREDITO ITALIANO (NEW YORK) 0.22 02/08/2010 41,347
36,179 VALDEZ ALASKA MARINE TERM REVENUE+/-ss 0.18 07/01/2037 36,179
3,876 VERMONT STATE STUDENT ASSISTANCE CORPORATION+/-ss 0.22 12/15/2040 3,876
1,834,385 VFNC CORPORATION+++/-(a)(i) 0.46 09/30/2010 917,193
38,763 YORKTOWN CAPITAL LLC++(p) 0.19 02/03/2010 38,762
3,131,530
------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $3,048,341) 3,221,977
------------------
SHARES YIELD
- --------------- --------
SHORT-TERM INVESTMENTS: 0.59%
MUTUAL FUNDS: 0.59%
1,565,147 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)~+++ 0.11 1,565,147
------------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,565,147) 1,565,147
------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $272,973,791)* 101.16% 266,040,753
OTHER ASSETS AND LIABILITIES, NET (1.16) (3,060,361)
------ ------------------
TOTAL NET ASSETS 100.00% $ 262,980,392
------ ------------------
48 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY CORE FUND
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
(u) Rate shown is the 7-day annualized yield at period end.
++ 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.
(p) Asset-backed commercial paper.
+/- 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.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
+++ Short-term security of an affiliate of the Fund with a cost of $1,565,147.
* Cost for federal income tax purposes is $273,593,234 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 30,361,943
Gross unrealized depreciation (37,914,424)
------------
Net unrealized depreciation $ (7,552,481)
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 49
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY VALUE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
COMMON STOCKS: 97.30%
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS: 2.04%
33,810 COACH INCORPORATED $ 1,179,293
15,586 VF CORPORATION 1,122,660
2,301,953
------------------
BIOPHARMACEUTICALS: 2.46%
19,702 GENZYME CORPORATION+ 1,069,031
30,045 TEVA PHARMACEUTICAL INDUSTRIES LIMITED ADR 1,704,152
2,773,183
------------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS: 1.57%
63,247 HOME DEPOT INCORPORATED 1,771,548
------------------
BUSINESS SERVICES: 0.96%
30,554 OMNICOM GROUP INCORPORATED 1,078,556
------------------
CHEMICALS: 1.44%
59,853 DOW CHEMICAL COMPANY 1,621,418
------------------
COMMUNICATIONS: 4.83%
88,288 AT&T INCORPORATED 2,238,971
50,338 NII HOLDINGS INCORPORATED+ 1,648,066
52,888 VERIZON COMMUNICATIONS INCORPORATED 1,555,965
5,443,002
------------------
COMPUTERS - MEMORY DEVICES: 1.19%
80,417 EMC CORPORATION+ 1,340,551
------------------
COSMETICS, PERSONAL CARE: 1.03%
18,355 JOHNSON & JOHNSON 1,153,795
------------------
DEPOSITORY INSTITUTIONS: 11.93%
190,651 BANK OF AMERICA CORPORATION 2,894,082
34,087 BANK OF NEW YORK MELLON CORPORATION 991,591
44,124 BB&T CORPORATION 1,229,736
76,997 COMERICA INCORPORATED 2,657,166
82,120 JPMORGAN CHASE & COMPANY 3,197,753
56,224 US BANCORP 1,410,098
55,686 ZIONS BANCORPORATION<< 1,056,363
13,436,789
------------------
EDUCATIONAL SERVICES: 1.02%
18,881 APOLLO GROUP INCORPORATED CLASS A+ 1,144,000
------------------
ELECTRIC, GAS & SANITARY SERVICES: 6.70%
42,638 AMERICAN WATER WORKS COMPANY INCORPORATED 929,508
48,793 DOMINION RESOURCES INCORPORATED 1,827,786
93,457 DUKE ENERGY CORPORATION 1,544,844
25,479 ENTERGY CORPORATION 1,944,302
40,507 WASTE MANAGEMENT INCORPORATED 1,298,249
7,544,689
------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 5.29%
267,488 GENERAL ELECTRIC COMPANY 4,301,207
64,305 MICROCHIP TECHNOLOGY INCORPORATED<< 1,659,712
5,960,919
------------------
50 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY VALUE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
ELECTRONIC COMPUTERS: 2.02%
28,991 ACCENTURE PLC $ 1,188,341
23,000 HEWLETT-PACKARD COMPANY 1,082,610
2,270,951
------------------
FOOD & KINDRED PRODUCTS: 2.17%
62,922 CONAGRA FOODS INCORPORATED 1,430,846
57,666 DEAN FOODS COMPANY+ 1,016,652
2,447,498
------------------
FOOD STORES: 0.76%
37,984 SAFEWAY INCORPORATED 852,741
------------------
HOLDING & OTHER INVESTMENT OFFICES: 4.34%
25,948 AFFILIATED MANAGERS GROUP INCORPORATED+ 1,571,670
22,559 BOSTON PROPERTIES INCORPORATED 1,463,402
25,793 SIMON PROPERTY GROUP INCORPORATED 1,857,096
4,892,168
------------------
HOUSEHOLD PRODUCTS , WARE: 0.91%
75,660 NEWELL RUBBERMAID INCORPORATED 1,026,706
------------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 4.72%
42,494 DOVER CORPORATION 1,822,143
31,251 EATON CORPORATION 1,913,811
81,609 INTEL CORPORATION 1,583,215
5,319,169
------------------
INSURANCE CARRIERS: 5.97%
16,941 ACE LIMITED 834,683
26,275 ALLSTATE CORPORATION 786,411
19,016 CHUBB CORPORATION 950,800
59,115 CIGNA CORPORATION 1,996,314
61,012 METLIFE INCORPORATED 2,154,944
6,723,152
------------------
MEDIA - COMMUNICATION: 1.10%
40,664 DIRECTV+ 1,234,152
------------------
MEDICAL PRODUCTS: 1.15%
24,845 STRYKER CORPORATION 1,289,952
------------------
MISCELLANEOUS RETAIL: 1.05%
36,597 CVS CAREMARK CORPORATION 1,184,645
------------------
MOTION PICTURES: 1.09%
41,577 WALT DISNEY COMPANY 1,228,600
------------------
OIL & GAS EXTRACTION: 10.49%
19,001 ANADARKO PETROLEUM CORPORATION 1,211,884
11,652 APACHE CORPORATION 1,150,868
90,321 BJ SERVICES COMPANY 1,866,935
30,831 DEVON ENERGY CORPORATION 2,062,902
38,442 ENCANA CORPORATION 1,175,941
56,152 PRIDE INTERNATIONAL INCORPORATED+ 1,662,099
161,826 TALISMAN ENERGY INCORPORATED 2,681,457
11,812,086
------------------
Wells Fargo Advantage Large Cap Stock Funds 51
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY VALUE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
PETROLEUM REFINING & RELATED INDUSTRIES: 5.88%
77,762 EXXON MOBIL CORPORATION $ 5,010,206
54,202 MARATHON OIL CORPORATION 1,615,762
6,625,968
------------------
PHARMACEUTICALS: 2.89%
71,581 BRISTOL-MYERS SQUIBB COMPANY 1,743,713
81,156 PFIZER INCORPORATED 1,514,371
3,258,084
------------------
PRIMARY METAL INDUSTRIES: 1.78%
78,664 ALCOA INCORPORATED 1,001,393
22,670 UNITED STATES STEEL CORPORATION 1,007,228
2,008,621
------------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 1.74%
55,132 MCGRAW-HILL COMPANIES INCORPORATED 1,954,429
------------------
RAILROAD TRANSPORTATION: 1.83%
43,860 NORFOLK SOUTHERN CORPORATION 2,064,052
------------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 3.15%
11,902 GOLDMAN SACHS GROUP INCORPORATED 1,770,065
41,486 STATE STREET CORPORATION 1,778,920
3,548,985
------------------
SOFTWARE: 1.07%
71,349 SYMANTEC CORPORATION+<< 1,209,366
------------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 0.59%
24,430 OWENS-ILLINOIS INCORPORATED+ 664,985
------------------
TRANSPORTATION EQUIPMENT: 2.14%
19,723 GENERAL DYNAMICS CORPORATION 1,318,483
19,376 NORTHROP GRUMMAN CORPORATION 1,096,682
2,415,165
------------------
TOTAL COMMON STOCKS (COST $104,855,181) 109,601,878
------------------
COLLATERAL FOR SECURITIES LENDING: 2.69%
YIELD
--------
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.13%
141,034 DWS MONEY MARKET SERIES INSTITUTIONAL(u) 0.13% 141,034
------------------
INTEREST
PRINCIPAL RATE MATURITY DATE
--------- -------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 2.56%
$ 62,458 ABN AMRO NORTH AMERICA FINANCE INCORPORATED 0.18 02/08/2010 62,455
24,681 ALLIED IRISH BANKS NORTH AMERICA INCORPORATED 0.25 02/03/2010 24,681
15,111 AMSTEL FUNDING CORPORATION++(p) 0.60 02/05/2010 15,109
4,030 ANGLO IRISH BANK CORPORATION++ 0.24 02/03/2010 4,029
20,148 ANGLO IRISH BANK CORPORATION++ 0.24 02/04/2010 20,147
22,162 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/22/2010 22,160
10,074 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/26/2010 10,072
10,074 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/08/2010 10,073
15,111 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/19/2010 15,109
30,221 AUTOBAHN FUNDING COMPANY LLC++(p) 0.22 02/17/2010 30,218
26,192 AUTOBAHN FUNDING COMPANY LLC++(p) 0.23 02/24/2010 26,188
52 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY VALUE FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 86,248 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $86,249) 0.12% 02/01/2010 $ 86,248
36,266 BANK OF IRELAND 0.35 02/01/2010 36,266
21,155 BANK OF IRELAND 0.50 02/02/2010 21,155
56,413 BANK OF NOVA SCOTIA (HOUSTON) 0.18 02/16/2010 56,414
2,015 BEETHOVEN FUNDING CORPORATION++(p) 0.30 02/03/2010 2,015
8,059 BEETHOVEN FUNDING CORPORATION++(p) 0.32 02/02/2010 8,059
60,443 BNP PARIBAS (NEW YORK) 0.15 02/01/2010 60,443
45,447 BRYANT PARK FUNDING LLC++(p) 0.16 02/12/2010 45,444
4,533 BTM CAPITAL CORPORATION++ 0.26 02/03/2010 4,533
8,059 CALCASIEU PARISH LA+/-ss 0.35 12/01/2027 8,059
11,081 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY+/-ss 0.30 06/01/2028 11,081
5,334 COLORADO HOUSING & FINANCE AUTHORITY+/-ss 0.25 10/01/2038 5,334
56,413 CONCORD MINUTEMEN CAPITAL COMPANY++(p) 0.35 02/16/2010 56,404
16,118 COOK COUNTY IL+/-ss 0.25 11/01/2030 16,118
56,413 DANSKE BANK A/S COPENHAGEN 0.15 02/01/2010 56,413
36,266 DENVER CO CITY & COUNTY SCHOOL DISTRICT+/-ss 0.33 12/15/2037 36,266
56,413 DEUTSCHE BANK (CAYMAN) 0.12 02/01/2010 56,413
21,155 DEXIA BANK (GRAND CAYMAN) 0.22 02/02/2010 21,155
30,221 DEXIA DELAWARE LLC 0.21 02/04/2010 30,221
56,413 DNB NOR BANK ASA 0.13 02/01/2010 56,413
56,413 ENI FINANCE USA INCORPORATED++ 0.19 02/04/2010 56,412
18,133 ERASMUS CAPITAL CORPORATION++(p) 0.20 02/19/2010 18,131
22,162 ERASMUS CAPITAL CORPORATION++(p) 0.22 02/04/2010 22,162
30,221 FORTIS BANK NV SA 0.17 02/03/2010 30,221
26,192 FORTIS BANK NV SA 0.19 02/05/2010 26,192
50,369 GDF SUEZ++ 0.20 02/03/2010 50,368
74,782 GOLDMAN SACHS REPURCHASE AGREEMENT - 102% COLLATERALIZED
BY MORTGAGE BACKED SECURITIES (MATURITY VALUE $74,783) 0.12 02/01/2010 74,782
58,428 GRAMPIAN FUNDING LLC++(p) 0.24 02/18/2010 58,421
314,105 GRYPHON FUNDING LIMITED(a)(i) 0.00 08/05/2010 122,972
28,207 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 05/01/2023 28,207
20,450 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 07/01/2034 20,450
3,324 HENRICO COUNTY VA ECONOMIC DEVELOPMENT AUTHORITY+/-ss 0.23 11/01/2042 3,324
30,221 HOUSTON TX UTILITY SYSTEM+/-ss 0.18 05/15/2034 30,221
10,074 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE+/-ss 0.22 07/01/2029 10,074
4,030 INDIANA MUNICIPAL POWER AGENCY+/-ss 0.24 01/01/2018 4,030
51,377 ING USA FUNDING LLC 0.17 02/09/2010 51,374
6,044 KANSAS CITY MO SPECIAL OBLIGATION+/-ss 0.24 04/15/2025 6,044
56,413 KBC BANK NV BRUSSELS 0.15 02/01/2010 56,413
62,458 LLOYDS TSB BANK PLC 0.20 02/04/2010 62,458
8,287 LMA AMERICAS LLC++(p) 0.18 02/11/2010 8,286
37,727 LMA AMERICAS LLC++(p) 0.18 02/12/2010 37,724
2,015 LOUIS DREYFUS CORPORATION 0.25 02/01/2010 2,015
66,588 MASSACHUSETTS HEFA+/-SS 0.19 10/01/2034 66,588
20,148 MATCHPOINT MASTER TRUST++(p) 0.17 02/22/2010 20,145
36,266 MATCHPOINT MASTER TRUST++(p) 0.17 02/26/2010 36,261
10,074 MONT BLANC CAPITAL CORPORATION++(p) 0.19 02/10/2010 10,073
7,253 MONTGOMERY COUNTY TN PUBLIC BUILDING+/-ss 0.21 02/01/2036 7,253
60,443 NATIXIS US FINANCE COMPANY LLC 0.21 02/10/2010 60,439
4,030 NEW JERSEY STATE TURNPIKE AUTHORITY+/-ss 0.24 01/01/2018 4,030
47,246 NEW YORK STATE DORMITORY AUTHORITY+/-ss 0.16 07/01/2034 47,246
35,057 NEWPORT BEACH CALIFORNIA REVENUE+/-ss 0.18 12/01/2040 35,057
40,315 NEWPORT FUNDING CORPORATION++(p) 0.20 02/16/2010 40,312
40,295 NIEUW AMSTERDAM RECEIVABLES CORPORATION++(p) 0.18 02/18/2010 40,292
11,776 NORTH DAKOTA HOUSING FINANCE AGENCY+/-ss 0.24 01/01/2034 11,776
Wells Fargo Advantage Large Cap Stock Funds 53
Portfolio of Investments--January 31, 2010 (Unaudited)
LARGE COMPANY VALUE FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (CONTINUED)
$ 40,295 REGENCY MARKETS #1 LLC++(p) 0.18% 02/16/2010 $ 40,292
5,541 ROMULUS FUNDING CORPORATION++(p) 0.28 02/18/2010 5,540
38,845 ROYAL BANK OF SCOTLAND PLC 0.17 02/03/2010 38,844
62,458 SCALDIS CAPITAL LIMITED++(p) 0.20 02/04/2010 62,456
56,413 SOCIETE GENERALE BANNON LLC 0.19 02/11/2010 56,413
4,030 SOCIETE GENERALE BANNON LLC 0.24 02/10/2010 4,030
52,384 SOLITAIRE FUNDING LLC++(p) 0.21 02/11/2010 52,380
56,413 SVENSKA HANDELSBANKEN (NEW YORK) 0.22 02/11/2010 56,414
35,033 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.17 02/25/2010 35,028
8,071 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.18 02/19/2010 8,070
47,301 TULIP FUNDING CORPORATION++(p) 0.16 02/10/2010 47,298
18,133 TULSA COUNTY OK INDUSTRIAL AUTHORITY REVENUE+/-ss 0.20 07/01/2032 18,133
64,473 UNICREDITO ITALIANO (NEW YORK) 0.22 02/08/2010 64,473
56,413 VALDEZ ALASKA MARINE TERM REVENUE+/-ss 0.18 07/01/2037 56,413
6,044 VERMONT STATE STUDENT ASSISTANCE CORPORATION+/-ss 0.22 12/15/2040 6,044
395,636 VFNC CORPORATION+++/-(a)(i) 0.46 09/30/2010 197,818
60,443 YORKTOWN CAPITAL LLC++(p) 0.19 02/03/2010 60,446
2,884,540
------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $2,988,125) 3,025,574
------------------
SHARES YIELD
- --------------- --------
SHORT-TERM INVESTMENTS: 4.02%
MUTUAL FUNDS: 4.02%
4,525,847 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)~+++ 0.11 4,525,847
------------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,525,847) 4,525,847
------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $112,369,153)* 104.01% 117,153,299
OTHER ASSETS AND LIABILITIES, NET (4.01) (4,519,227)
------ ------------------
TOTAL NET ASSETS 100.00% $ 112,634,072
------ ------------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
(u) Rate shown is the 7-day annualized yield at period end.
++ 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.
(p) Asset-backed commercial paper.
+/- 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.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
+++ Short-term security of an affiliate of the Fund with a cost of $4,525,847.
* Cost for federal income tax purposes is $116,826,362 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 13,144,630
Gross unrealized depreciation (12,817,693)
------------
Net unrealized appreciation $ 326,937
The accompanying notes are an integral part of these financial statements.
54 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
U.S. VALUE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
COMMON STOCKS: 96.95%
AEROSPACE, DEFENSE: 2.28%
48,800 BOEING COMPANY $ 2,957,280
1,000 LOCKHEED MARTIN CORPORATION 74,520
1,000 UNITED TECHNOLOGIES CORPORATION 67,480
3,099,280
------------------
BEVERAGES: 0.72%
18,100 THE COCA-COLA COMPANY 981,925
------------------
BUSINESS SERVICES: 2.42%
93,000 MONSTER WORLDWIDE INCORPORATED+ 1,449,870
9,000 OMNICOM GROUP INCORPORATED 317,700
107,000 TOTAL SYSTEM SERVICES INCORPORATED 1,531,170
3,298,740
------------------
CHEMICALS: 1.74%
580 BASF AG ADR 32,915
25,000 DOW CHEMICAL COMPANY 677,250
50,631 E.I. DU PONT DE NEMOURS & COMPANY 1,651,077
2,361,242
------------------
COMMUNICATIONS: 2.12%
50,000 AT&T Incorporated 1,268,000
25,083 TIME WARNER CABLE INCORPORATED 1,093,368
17,800 VERIZON COMMUNICATIONS INCORPORATED 523,676
2,885,044
------------------
COSMETICS, PERSONAL CARE: 2.65%
32,400 JOHNSON & JOHNSON 2,036,664
25,400 PROCTER & GAMBLE COMPANY 1,563,370
3,600,034
------------------
CRUDE PETROLEUM & NATURAL GAS: 2.22%
40,800 NOBLE ENERGY INCORPORATED 3,016,752
------------------
DEPOSITORY INSTITUTIONS: 17.88%
9,163 BANCO BILBAO VIZCAYA ARGENTARIA SA ADR 139,186
362,600 BANK OF AMERICA CORPORATION 5,504,268
54,000 BB&T Corporation<< 1,504,980
1,653 COMMERCE BANCSHARES INCORPORATED 65,426
126,300 JPMORGAN CHASE & COMPANY 4,918,122
238,800 KEYCORP 1,714,584
1,900 M&T BANK CORPORATION<< 140,125
129,000 MARSHALL & ILSLEY CORPORATION 891,390
42,000 NORTHERN TRUST CORPORATION 2,121,840
48,700 PNC FINANCIAL SERVICES GROUP INCORPORATED 2,699,441
73,000 REGIONS FINANCIAL CORPORATION 463,550
166,000 US BANCORP 4,163,280
24,326,192
------------------
ELECTRIC, GAS & SANITARY SERVICES: 4.98%
30,000 AQUA AMERICA INCORPORATED<< 497,700
90,000 NISOURCE INCORPORATED 1,282,500
24,000 PROGRESS ENERGY INCORPORATED 935,280
Wells Fargo Advantage Large Cap Stock Funds 55
Portfolio of Investments--January 31, 2010 (Unaudited)
U.S. VALUE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
ELECTRIC, GAS & SANITARY SERVICES (continued)
54,500 REPUBLIC SERVICES INCORPORATED $ 1,460,055
38,000 THE SOUTHERN COMPANY 1,216,000
43,000 WASTE MANAGEMENT INCORPORATED 1,378,150
6,769,685
------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 4.06%
90,000 ATMI INCORPORATED+ 1,510,200
250,000 GENERAL ELECTRIC COMPANY 4,020,000
5,530,200
------------------
FOOD: 2.15%
60,000 CONAGRA FOODS INCORPORATED 1,364,400
56,000 SYSCO CORPORATION 1,567,440
2,931,840
------------------
FOOD STORES: 0.78%
49,700 KROGER COMPANY 1,065,071
------------------
FOOTWEAR: 1.05%
22,500 NIKE INCORPORATED CLASS B 1,434,375
------------------
GENERAL MERCHANDISE STORES: 1.28%
34,000 TARGET CORPORATION 1,743,180
------------------
HEALTH SERVICES: 1.00%
27,900 HUMANA INCORPORATED+ 1,356,498
------------------
HOLDING & OTHER INVESTMENT OFFICES: 0.79%
29,000 ANNALY CAPITAL MANAGEMENT INCORPORATED 504,020
28,000 EXTERRAN HOLDINGS INCORPORATED+ 567,840
1,071,860
------------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 1.57%
26,600 3M COMPANY 2,141,034
------------------
INSURANCE AGENTS, BROKERS & SERVICE: 0.39%
24,400 MARSH & MCLENNAN COMPANIES INCORPORATED 526,064
------------------
INSURANCE CARRIERS: 4.15%
8,800 AETNA INCORPORATED 263,736
43,300 ALLSTATE CORPORATION 1,295,969
28,800 CHUBB CORPORATION 1,440,000
7,800 CIGNA CORPORATION 263,406
34,600 FIDELITY NATIONAL TITLE GROUP INCORPORATED 446,340
23,800 THE TRAVELERS COMPANIES INCORPORATED 1,205,946
11,500 WELLPOINT INCORPORATED+ 732,780
5,648,177
------------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL
GOODS: 2.94%
50,000 BOSTON SCIENTIFIC CORPORATION+ 431,500
29,000 DANAHER CORPORATION 2,069,150
44,000 PERKINELMER INCORPORATED 886,160
13,400 THERMO FISHER SCIENTIFIC INCORPORATED+ 618,410
4,005,220
------------------
56 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
U.S. VALUE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
METAL MINING: 1.32%
27,000 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED CLASS B $ 1,800,630
------------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 1.12%
43,000 TYCO INTERNATIONAL LIMITED 1,523,490
------------------
MISCELLANEOUS RETAIL: 1.19%
20,800 GAMESTOP CORPORATION CLASS A+ 411,216
212,000 OFFICE DEPOT INCORPORATED+ 1,204,160
1,615,376
------------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING: 1.50%
26,000 FEDEX CORPORATION 2,037,100
------------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 1.41%
123,200 DISCOVER FINANCIAL SERVICES 1,685,376
14,600 PEOPLE'S UNITED FINANCIAL INCORPORATED 236,082
1,921,458
------------------
OIL & GAS: 0.71%
24,700 ENSCO INTERNATIONAL PLC ADR 964,041
------------------
OIL & GAS EXTRACTION: 5.74%
45,500 ANADARKO PETROLEUM CORPORATION 2,901,990
23,000 CHESAPEAKE ENERGY CORPORATION 569,940
28,000 DEVON ENERGY CORPORATION 1,873,480
42,700 TOTAL SA ADR 2,459,093
7,804,503
------------------
OIL & OIL SERVICES: 0.28%
13,200 HALLIBURTON COMPANY 385,572
------------------
OIL FIELD EQUIPMENT & SERVICES: 1.86%
62,000 NATIONAL OILWELL VARCO INCORPORATED 2,535,800
------------------
PAPER & ALLIED PRODUCTS: 0.98%
57,900 INTERNATIONAL PAPER COMPANY 1,326,489
------------------
PETROLEUM REFINING & RELATED INDUSTRIES: 9.56%
49,600 CHEVRON CORPORATION 3,577,152
36,500 CONOCOPHILLIPS 1,752,000
91,000 EXXON MOBIL CORPORATION 5,863,130
31,300 HESS CORPORATION 1,808,827
13,001,109
------------------
PHARMACEUTICALS: 5.25%
68,000 MERCK & COMPANY INCORPORATED 2,596,240
244,000 PFIZER INCORPORATED 4,553,040
7,149,280
------------------
PRIMARY METAL INDUSTRIES: 0.89%
29,500 ALLEGHENY TECHNOLOGIES INCORPORATED 1,205,075
------------------
RETAIL-DRUG STORES: 1.94%
73,200 WALGREEN COMPANY 2,638,860
------------------
Wells Fargo Advantage Large Cap Stock Funds 57
Portfolio of Investments--January 31, 2010 (Unaudited)
U.S. VALUE FUND
SHARES SECURITY NAME VALUE
------ ------------- ------------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 0.66%
2,100 GOLDMAN SACHS GROUP INCORPORATED $ 312,312
22,800 LEGG MASON INCORPORATED 587,784
900,096
------------------
SOFTWARE: 2.34%
37,000 ELECTRONIC ARTS INCORPORATED+ 602,360
91,500 MICROSOFT CORPORATION 2,578,470
3,180,830
------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS: 0.25%
6,800 COVIDIEN LIMITED 343,808
------------------
TELECOMMUNICATIONS: 1.77%
112,000 VODAFONE GROUP PLC ADR 2,403,520
------------------
TRANSPORTATION EQUIPMENT: 1.01%
2,000 GENERAL DYNAMICS CORPORATION 133,700
25,800 ITT CORPORATION 1,246,398
1,380,098
------------------
TOTAL COMMON STOCKS (COST $133,146,994) 131,909,548
------------------
COLLATERAL FOR SECURITIES LENDING: 0.68%
YIELD
--------
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.02%
28,217 DWS MONEY MARKET SERIES INSTITUTIONAL(u) 0.13% 28,217
------------------
INTEREST
PRINCIPAL RATE MATURITY DATE
--------- -------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 0.66%
$ 12,496 ABN AMRO NORTH AMERICA FINANCE INCORPORATED 0.18 02/08/2010 12,496
4,938 ALLIED IRISH BANKS NORTH AMERICA INCORPORATED 0.25 02/03/2010 4,938
3,023 AMSTEL FUNDING CORPORATION++(p) 0.60 02/05/2010 3,023
806 ANGLO IRISH BANK CORPORATION++ 0.24 02/03/2010 806
4,031 ANGLO IRISH BANK CORPORATION++ 0.24 02/04/2010 4,031
4,434 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/22/2010 4,434
2,016 ANTALIS US FUNDING CORPORATION++(p) 0.19 02/26/2010 2,015
2,016 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/08/2010 2,015
3,023 ANTALIS US FUNDING CORPORATION++(p) 0.20 02/19/2010 3,023
6,047 AUTOBAHN FUNDING COMPANY LLC++(p) 0.22 02/17/2010 6,046
5,240 AUTOBAHN FUNDING COMPANY LLC++(p) 0.23 02/24/2010 5,239
17,256 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED BY
MORTGAGE BACKED SECURITIES (MATURITY VALUE $17,256) 0.12 02/01/2010 17,256
7,256 BANK OF IRELAND 0.35 02/01/2010 7,256
4,233 BANK OF IRELAND 0.50 02/02/2010 4,233
11,287 BANK OF NOVA SCOTIA (HOUSTON) 0.18 02/16/2010 11,287
403 BEETHOVEN FUNDING CORPORATION++(p) 0.30 02/03/2010 403
1,612 BEETHOVEN FUNDING CORPORATION++(p) 0.32 02/02/2010 1,612
12,093 BNP PARIBAS (NEW YORK) 0.15 02/01/2010 12,093
9,093 BRYANT PARK FUNDING LLC++(p) 0.16 02/12/2010 9,092
907 BTM CAPITAL CORPORATION++ 0.26 02/03/2010 907
1,612 CALCASIEU PARISH LA+/-ss 0.35 12/01/2027 1,612
2,217 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY+/-ss 0.30 06/01/2028 2,217
1,067 COLORADO HOUSING & FINANCE AUTHORITY+/-ss 0.25 10/01/2038 1,067
11,287 CONCORD MINUTEMEN CAPITAL COMPANY++(p) 0.35 02/16/2010 11,285
3,225 COOK COUNTY IL+/-ss 0.25 11/01/2030 3,225
11,287 DANSKE BANK A/S COPENHAGEN 0.15 02/01/2010 11,287
58 Wells Fargo Advantage Large Cap Stock Funds
Portfolio of Investments--January 31, 2010 (Unaudited)
U.S. VALUE FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 7,256 DENVER CO CITY & COUNTY SCHOOL DISTRICT+/-ss 0.33% 12/15/2037 $ 7,256
11,287 DEUTSCHE BANK (CAYMAN) 0.12 02/01/2010 11,287
4,233 DEXIA BANK (GRAND CAYMAN) 0.22 02/02/2010 4,233
6,047 DEXIA DELAWARE LLC 0.21 02/04/2010 6,046
11,287 DNB NOR BANK ASA 0.13 02/01/2010 11,287
11,287 ENI FINANCE USA INCORPORATED++ 0.19 02/04/2010 11,287
3,628 Erasmus Capital Corporation++(p) 0.20 02/19/2010 3,628
4,434 Erasmus Capital Corporation++(p) 0.22 02/04/2010 4,434
6,047 Fortis Bank NV SA 0.17 02/03/2010 6,047
5,240 Fortis Bank NV SA 0.19 02/05/2010 5,240
10,078 GDF SUEZ++ 0.20 02/03/2010 10,077
14,962 GOLDMAN SACHS REPURCHASE AGREEMENT - 102% COLLATERALIZED BY
MORTGAGE BACKED SECURITIES (MATURITY VALUE $14,962) 0.12 02/01/2010 14,962
11,690 GRAMPIAN FUNDING LLC++(p) 0.24 02/18/2010 11,688
372,885 GRYPHON FUNDING LIMITED(a)(i) 0.00 08/05/2010 145,984
5,643 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 05/01/2023 5,643
4,091 GULF COAST WASTE DISPOSAL AUTHORITY+/-ss 0.19 07/01/2034 4,091
665 HENRICO COUNTY VA ECONOMIC DEVELOPMENT AUTHORITY+/-ss 0.23 11/01/2042 665
6,047 HOUSTON TX UTILITY SYSTEM+/-ss 0.18 05/15/2034 6,047
2,016 ILLINOIS EDUCATIONAL FACILITIES AUTHORITY REVENUE+/-ss 0.22 07/01/2029 2,016
806 INDIANA MUNICIPAL POWER AGENCY+/-ss 0.24 01/01/2018 806
10,279 ING USA FUNDING LLC 0.17 02/09/2010 10,279
1,209 KANSAS CITY MO SPECIAL OBLIGATION+/-ss 0.24 04/15/2025 1,209
11,287 KBC BANK NV BRUSSELS 0.15 02/01/2010 11,287
12,496 LLOYDS TSB BANK PLC 0.20 02/04/2010 12,496
1,658 LMA AMERICAS LLC++(p) 0.18 02/11/2010 1,658
7,548 LMA AMERICAS LLC++(p) 0.18 02/12/2010 7,548
403 LOUIS DREYFUS CORPORATION 0.25 02/01/2010 403
13,322 MASSACHUSETTS HEFA+/-ss 0.19 10/01/2034 13,322
4,031 MATCHPOINT MASTER TRUST++(p) 0.17 02/22/2010 4,031
7,256 MATCHPOINT MASTER TRUST++(p) 0.17 02/26/2010 7,255
2,016 MONT BLANC CAPITAL CORPORATION++(p) 0.19 02/10/2010 2,015
1,451 MONTGOMERY COUNTY TN PUBLIC BUILDING+/-ss 0.21 02/01/2036 1,451
12,093 NATIXIS US FINANCE COMPANY LLC 0.21 02/10/2010 12,092
806 NEW JERSEY STATE TURNPIKE AUTHORITy+/-ss 0.24 01/01/2018 806
9,453 NEW YORK STATE DORMITORY AUTHORITY+/-ss 0.16 07/01/2034 9,453
7,014 NEWPORT BEACH CALIFORNIA REVENUE+/-ss 0.18 12/01/2040 7,014
8,066 NEWPORT FUNDING CORPORATION++(p) 0.20 02/16/2010 8,065
8,062 NIEUW AMSTERDAM RECEIVABLES CORPORATION++(p) 0.18 02/18/2010 8,061
2,356 NORTH DAKOTA HOUSING FINANCE AGENCY+/-ss 0.24 01/01/2034 2,356
8,062 REGENCY MARKETS #1 LLC++(p) 0.18 02/16/2010 8,061
1,109 ROMULUS FUNDING CORPORATION++(p) 0.28 02/18/2010 1,108
7,772 ROYAL BANK OF SCOTLAND PLC 0.17 02/03/2010 7,772
12,496 SCALDIS CAPITAL LIMITED++(p) 0.20 02/04/2010 12,496
11,287 SOCIETE GENERALE BANNON LLC 0.19 02/11/2010 11,287
806 SOCIETE GENERALE BANNON LLC 0.24 02/10/2010 806
10,481 SOLITAIRE FUNDING LLC++(p) 0.21 02/11/2010 10,480
11,287 SVENSKA HANDELSBANKEN (NEW YORK) 0.22 02/11/2010 11,287
7,009 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.17 02/25/2010 7,008
1,615 TICONDEROGA MASTER FUNDING LIMITED++(p) 0.18 02/19/2010 1,615
9,464 TULIP FUNDING CORPORATION++(p) 0.16 02/10/2010 9,463
3,628 TULSA COUNTY OK INDUSTRIAL AUTHORITY REVENUE+/-ss 0.20 07/01/2032 3,628
12,899 UNICREDITO ITALIANO (NEW YORK) 0.22 02/08/2010 12,899
11,287 VALDEZ ALASKA MARINE TERM REVENUE+/-ss 0.18 07/01/2037 11,287
Wells Fargo Advantage Large Cap Stock Funds 59
Portfolio of Investments--January 31, 2010 (Unaudited)
U.S. VALUE FUND
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------- ------------- -------- ------------- ------------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 1,209 VERMONT STATE STUDENT ASSISTANCE CORPORATION+/-ss 0.22% 12/15/2040 $ 1,209
469,673 VFNC CORPORATION+++/-(a)(i) 0.46 09/30/2010 234,836
12,093 YORKTOWN CAPITAL LLC++(p) 0.19 02/03/2010 12,093
893,758
------------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $877,517) 921,975
------------------
SHARES YIELD
------ --------
SHORT-TERM INVESTMENTS: 3.89%
MUTUAL FUNDS: 3.89%
5,289,081 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)~+++ 0.11 5,289,081
------------------
TOTAL SHORT-TERM INVESTMENTS (COST $5,289,081) 5,289,081
------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $139,313,592)* 101.52% 138,120,604
OTHER ASSETS AND LIABILITIES, NET (1.52) (2,068,119)
------ ------------------
TOTAL NET ASSETS 100.00% $ 136,052,485
------ ------------------
- ----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
(u) Rate shown is the 7-day annualized yield at period end.
++ 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.
(p) Asset-backed commercial paper.
+/- 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.
(i) Illiquid security.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
+++ Short-term security of an affiliate of the Fund with a cost of $5,289,081.
* Cost for federal income tax purposes is $140,092,070 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 13,016,847
Gross unrealized depreciation (14,988,313)
------------
Net unrealized depreciation $ (1,971,466)
The accompanying notes are an integral part of these financial statements.
60 Wells Fargo Advantage Large Cap Stock Funds
Statements of Assets and Liabilities--January 31, 2010 (Unaudited)
Capital Endeavor
Growth Select
Fund Fund
-------------- --------------
ASSETS
Investments
In unaffiliated securities, at value (including securities on loan) .... $1,340,614,686 $1,252,187,055
Of collateral received for securities loaned, at value ................. 76,448,469 157,226,175
In affiliated securities, at value ..................................... 35,398,882 5,456,877
-------------- --------------
Total investments at value (see cost below) ............................... 1,452,462,037 1,414,870,107
-------------- --------------
Cash ...................................................................... 1,044,349 1,474,070
Receivable for Fund shares issued ......................................... 2,656,512 3,773,057
Receivable for investments sold ........................................... 32,358,206 36,176,548
Receivables for dividends ................................................. 642,465 756,695
-------------- --------------
Total assets ................................................................. 1,489,163,569 1,457,050,477
-------------- --------------
LIABILITIES
Payable for Fund shares redeemed .......................................... 7,318,016 8,537,089
Payable for investments purchased ......................................... 20,059,016 15,374,359
Payable upon receipt of securities loaned ................................. 76,373,439 157,120,273
Payable to investment advisor and affiliates .............................. 1,140,811 998,537
Due to custodian bank ..................................................... 0 0
Accrued expenses and other liabilities .................................... 141,099 149,104
-------------- --------------
Total liabilities ............................................................ 105,032,381 182,179,362
-------------- --------------
TOTAL NET ASSETS ............................................................. $1,384,131,188 $1,274,871,115
-------------- --------------
NET ASSETS CONSIST OF
Paid-in capital ........................................................... $1,762,037,396 $1,621,620,415
Undistributed (overdistributed) net investment income (loss) .............. (1,701,523) (746,621)
Accumulated net realized loss on investments .............................. (440,015,977) (480,649,473)
Net unrealized appreciation (depreciation) on investments ................. 63,191,986 133,772,660
Net unrealized appreciation of collateral received for securities loaned .. 619,306 874,134
-------------- --------------
TOTAL NET ASSETS ............................................................. $1,384,131,188 $1,274,871,115
-------------- --------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE (1)
Net assets - Class A ...................................................... $ 20,542,231 $ 139,511,711
Shares outstanding - Class A .............................................. 1,621,513 18,052,973
Net asset value per share - Class A ....................................... $ 12.67 $ 7.73
Maximum offering price per share - Class A(2) ............................. $ 13.44 $ 8.20
Net assets - Class B ...................................................... NA $ 3,326,783
Shares outstanding - Class B .............................................. NA 464,154
Net asset value and offering price per share - Class B .................... NA $ 7.17
Net assets - Class C ...................................................... $ 6,962,580 $ 8,604,878
Shares outstanding - Class C .............................................. 560,048 1,200,854
Net asset value and offering price per share - Class C .................... $ 12.43 $ 7.17
Net assets - Administrator Class .......................................... $ 658,779,683 $ 223,516,287
Shares outstanding - Administrator Class .................................. 50,588,126 28,593,864
Net asset value and offering price per share - Administrator Class ........ $ 13.02 $ 7.82
Net assets - Institutional Class .......................................... $ 471,444,621 $ 899,911,456
Shares outstanding - Institutional Class .................................. 35,930,072 114,398,112
Net asset value and offering price per share - Institutional Class ........ $ 13.12 $ 7.87
Net assets - Investor Class ............................................... $ 226,402,073 NA
Shares outstanding - Investor Class ....................................... 17,935,267 NA
Net asset value and offering price per share - Investor Class ............. $ 12.62 NA
-------------- --------------
Investments at cost .......................................................... $1,388,650,745 $1,280,223,313
-------------- --------------
Securities on loan, at value ................................................. $ 70,407,241 $ 151,791,608
-------------- --------------
- ----------
1. Each Fund has an unlimited number of authorized shares.
2. Maximum offering price is computed as 100/94.25 of net asset value. On
investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 61
Statements of Assets and Liabilities--January 31, 2010 (Unaudited)
Large Cap Large Large
Growth Growth Company Company U.S. Value
Fund Fund Core Fund Value Fund Fund
- -------------- ------------- ------------ ------------ ------------
$1,487,196,887 $ 280,001,938 $261,253,629 $109,601,878 $131,909,548
190,181,781 19,010,084 3,221,977 3,025,574 921,975
12,332,623 746,174 1,565,147 4,525,847 5,289,081
- -------------- ------------- ------------ ------------ ------------
1,689,711,291 299,758,196 266,040,753 117,153,299 138,120,604
- -------------- ------------- ------------ ------------ ------------
1,407,043 320,073 292,807 0 74,970
3,069,954 38,988 454,893 12,267 23,954
14,488,927 4,500,685 177,308 0 0
464,204 166,711 277,251 127,504 198,188
- -------------- ------------- ------------ ------------ ------------
1,709,141,419 304,784,653 267,243,012 117,356,222 138,417,716
- -------------- ------------- ------------ ------------ ------------
1,147,161 87,250 150,065 27,335 30,342
21,607,944 3,587,613 662,521 0 1,334,601
190,080,696 18,987,088 3,200,942 3,044,992 916,590
1,557,091 144,828 232,055 89,114 81,368
0 0 0 1,484,159 0
147,205 35,667 17,037 13,398 2,330
- -------------- ------------- ------------ ------------ ------------
214,540,097 22,842,446 4,262,620 4,722,150 2,365,231
- -------------- ------------- ------------ ------------ ------------
$1,494,601,322 $ 281,942,207 $262,980,392 $112,634,072 $136,052,485
- -------------- ------------- ------------ ------------ ------------
$1,452,172,330 $ 545,978,587 $341,693,202 $135,853,572 $160,220,266
(3,558,914) (67,693) 227,458 283,138 27,715
(87,031,611) (266,086,729) (72,007,230) (28,286,784) (23,002,508)
132,185,130 1,928,236 (7,106,674) 4,746,697 (1,237,446)
834,387 189,806 173,636 37,449 44,458
- -------------- ------------- ------------ ------------ ------------
$1,494,601,322 $ 281,942,207 $262,980,392 $112,634,072 $136,052,485
- -------------- ------------- ------------ ------------ ------------
$ 81,338,464 NA $ 7,364,085 $ 232,559 $ 788,898
3,392,118 NA 381,241 21,368 75,585
$ 23.98 NA $ 19.32 $ 10.88 $ 10.44
$ 25.44 NA $ 20.50 $ 11.54 $ 11.08
NA NA $ 1,561,968 NA $ 958,955
NA NA 81,205 NA 92,336
NA NA $ 19.23 NA $ 10.39
$ 6,420,850 NA $ 1,258,065 $ 297,127 $ 906,783
280,687 NA 65,404 26,820 87,993
$ 22.88 NA $ 19.24 $ 11.08 $ 10.31
$ 277,672,480 NA $ 43,905 $ 251,658 $110,821,019
11,115,997 NA 2,270 23,034 10,761,452
$ 24.98 NA $ 19.34 $ 10.93 $ 10.30
$ 288,246,807 NA $ 14,503,742 $ 8,528 NA
11,281,751 NA 743,270 781 NA
$ 25.55 NA $ 19.51 $ 10.92 NA
$ 840,922,721 $ 281,942,207 $238,248,627 $111,844,200 $ 22,576,830
35,075,696 11,818,195 12,261,997 10,063,985 2,131,097
$ 23.97 $ 23.86 $ 19.43 $ 11.11 $ 10.59
- -------------- ------------- ------------ ------------ ------------
$1,556,691,774 $ 297,640,154 $272,973,791 $112,369,153 $139,313,592
- -------------- ------------- ------------ ------------ ------------
$ 188,309,537 $ 17,976,189 $ 1,771,500 $ 2,742,316 $ 557,313
- -------------- ------------- ------------ ------------ ------------
62 Wells Fargo Advantage Large Cap Stock Funds
Statements of Operations--For the Six Months Ended January 31, 2010 (Unaudited)
Capital Endeavor
Growth Select
Fund Fund
------------ ------------
INVESTMENT INCOME
Dividends(1) ...................................................... $ 5,015,013 $ 5,175,015
Income from affiliated securities ................................. 7,801 14,962
Securities lending income ......................................... 149,503 131,143
------------ ------------
Total investment income .............................................. 5,172,317 5,321,120
------------ ------------
EXPENSES
Advisory fees ..................................................... 4,693,765 4,415,659
Administration fees
Fund level ..................................................... 359,983 336,807
Class A ........................................................ 30,485 222,090
Class B ........................................................ NA 5,310
Class C ........................................................ 10,059 12,990
Administrator Class ............................................ 357,005 121,334
Institutional Class ............................................ 187,414 373,142
Investor Class ................................................. 434,012 NA
Custody fees ...................................................... 74,621 70,596
Shareholder servicing fees
Class A ........................................................ 27,218 197,976
Class B ........................................................ NA 4,741
Class C ........................................................ 8,981 11,598
Administrator Class ............................................ 892,219 298,039
Investor Class ................................................. 280,629 NA
Accounting fees ................................................... 32,114 32,344
Distribution fees
Class B ........................................................ NA 14,222
Class C ........................................................ 26,944 34,794
Professional fees ................................................. 22,179 19,585
Registration fees ................................................. 41,885 44,878
Shareholder reports ............................................... 124,657 153,908
Trustees' fees .................................................... 5,274 5,274
Other fees and expenses ........................................... 19,002 20,906
------------ ------------
Total expenses ....................................................... 7,628,446 6,396,193
------------ ------------
LESS
Waived fees and reimbursed expenses ............................... (765,753) (329,245)
Net expenses ...................................................... 6,862,693 6,066,948
------------ ------------
Net investment income (loss) ......................................... (1,690,376) (745,828)
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Unaffiliated securities ........................................... 96,589,558 108,595,529
Investments of collateral received for securities loaned .......... (3,449,301) (3,065,051)
------------ ------------
Net realized gain and loss from investments .......................... 93,140,257 105,530,478
------------ ------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON
Unaffiliated securities ........................................... 3,749,855 (20,227,717)
Investments of collateral received for securities loaned .......... 4,825,830 5,002,467
------------ ------------
Net change in unrealized appreciation (depreciation) of investments .. 8,575,685 (15,225,250)
------------ ------------
Net realized and unrealized gain and loss on investments ............. 101,715,942 90,305,228
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................. $100,025,566 $ 89,559,400
------------ ------------
1. Net of foreign withholding taxes of ............................... $ 285,974 $ 263,729
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 63
Statements of Operations--For the Six Months Ended January 31, 2010 (Unaudited)
Large Cap Large Large
Growth Growth Company Company U.S. Value
Fund Fund Core Fund Value Fund Fund
- ------------ ----------- ----------- ----------- -----------
$ 4,691,603 $ 1,616,799 $ 1,809,545 $ 1,232,992 $ 1,388,739
6,648 1,261 1,814 1,506 2,519
277,023 9,088 26,390 7,088 11,345
- ------------ ----------- ----------- ----------- -----------
4,975,274 1,627,148 1,837,749 1,241,586 1,402,603
- ------------ ----------- ----------- ----------- -----------
4,976,870 997,002 891,375 401,715 464,590
354,069 149,715 63,670 28,694 33,185
90,402 NA 10,413 275 1,088
NA NA 2,337 NA 1,449
6,547 NA 1,825 420 1,227
121,176 NA 22 124 53,760
110,598 NA 6,856 4 NA
1,573,540 462,729 431,461 216,646 42,809
72,869 7,662 12,390 5,544 5,897
80,717 NA 9,081 245 972
NA NA 2,086 NA 1,294
5,846 NA 1,629 375 1,095
302,389 NA 55 309 134,399
1,034,500 355,653 249,216 142,084 27,949
31,278 6,777 4,789 5,985 5,468
NA NA 6,259 NA 3,882
17,537 NA 4,887 1,126 3,287
19,376 17,731 22,179 19,696 19,321
33,907 9,722 29,917 28,920 24,932
109,699 31,056 31,912 13,961 11,967
5,274 5,274 5,274 5,274 5,274
16,921 4,691 4,690 3,200 3,285
- ------------ ----------- ----------- ----------- -----------
8,963,515 2,048,012 1,792,323 874,597 847,130
- ------------ ----------- ----------- ----------- -----------
(429,327) (353,111) (211,727) (99,489) (158,356)
8,534,188 1,694,901 1,580,596 775,108 688,774
- ------------ ----------- ----------- ----------- -----------
(3,558,914) (67,753) 257,153 466,478 713,829
- ------------ ----------- ----------- ----------- -----------
62,307,510 5,482,290 (1,130,443) (193,649) 3,364,415
(4,610,920) (467,534) (346,797) (182,395) (154,795)
- ------------ ----------- ----------- ----------- -----------
57,696,590 5,014,756 (1,477,240) (376,044) 3,209,620
- ------------ ----------- ----------- ----------- -----------
107,062,512 19,860,961 24,533,640 11,381,665 9,551,335
6,460,241 888,216 734,042 147,468 253,331
- ------------ ----------- ----------- ----------- -----------
113,522,753 20,749,177 25,267,682 11,529,133 9,804,666
- ------------ ----------- ----------- ----------- -----------
171,219,343 25,763,933 23,790,442 11,153,089 13,014,286
- ------------ ----------- ----------- ----------- -----------
$167,660,429 $25,696,180 $24,047,595 $11,619,567 $13,728,115
- ------------ ----------- ----------- ----------- -----------
$ 13,229 $ 16,947 $ 7,290 $ 3,867 $ 1,650
64 Wells Fargo Advantage Large Cap Stock Funds
Statements of Changes in Net Assets
CAPITAL GROWTH FUND
-------------------------------
For the
Six Months
Ended
January 31, For the
2010 Year Ended
(Unaudited) July 31, 2009
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets ....................................................................... $1,372,643,632 $1,639,344,170
OPERATIONS
Net investment income (loss) ............................................................... (1,690,376) 3,586,205
Net realized gain (loss) on investments .................................................... 93,140,257 (529,957,042)
Net change in unrealized appreciation (depreciation) on investments ........................ 8,575,685 63,979,010
-------------- --------------
Net increase (decrease) in net assets resulting from operations ............................... 100,025,566 (462,391,827)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Administrator Class ..................................................................... (1,796,241) 0
Institutional Class ..................................................................... (1,989,485) 0
Investor Class .......................................................................... 0 0
Net realized gains
Class A ................................................................................. 0 (954,537)
Class B ................................................................................. NA NA
Class C ................................................................................. 0 (264,298)
Administrator Class ..................................................................... 0 (22,693,086)
Institutional Class ..................................................................... 0 (16,485,253)
Investor Class .......................................................................... 0 (9,843,385)
-------------- --------------
Total distributions to shareholders ........................................................... (3,785,726) (50,240,559)
-------------- --------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ........................................................ 1,275,511 6,445,619
Reinvestment of distributions - Class A .................................................... 0 938,106
Cost of shares redeemed - Class A .......................................................... (3,327,197) (8,586,168)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions - Class A .. (2,051,686) (1,202,443)
-------------- --------------
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 ........................................................ 770,664 2,842,244
Reinvestment of distributions - Class C .................................................... 0 169,153
Cost of shares redeemed - Class C .......................................................... (1,038,649) (1,386,922)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions - Class C .. (267,985) 1,624,475
-------------- --------------
Proceeds from shares sold - Administrator Class ............................................ 162,855,749 682,873,645
Reinvestment of distributions - Administrator Class ........................................ 1,403,195 19,464,021
Cost of shares redeemed - Administrator Class .............................................. (237,092,523) (494,218,471)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions -
Administrator Class ..................................................................... (72,833,579) 208,119,195
-------------- --------------
Proceeds from shares sold - Institutional Class ............................................ 57,759,707 287,429,550
Reinvestment of distributions - Institutional Class ........................................ 1,946,063 16,371,620
Cost of shares redeemed - Institutional Class .............................................. (61,051,657) (233,159,181)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions -
Institutional Class ..................................................................... (1,345,887) 70,641,989
-------------- --------------
Proceeds from shares sold - Investor Class ................................................. 31,935,405 72,169,813
Reinvestment of distributions - Investor Class ............................................. 0 6,988,086
Cost of shares redeemed - Investor Class ................................................... (40,188,552) (112,409,267)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions -
Investor Class .......................................................................... (8,253,147) (33,251,368)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions - Total ....... (84,752,284) 245,931,848
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS ......................................................... 11,487,556 (266,700,538)
-------------- --------------
ENDING NET ASSETS ............................................................................. $1,384,131,188 $1,372,643,632
-------------- --------------
ENDING BALANCE OF UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME (LOSS) ................ $ (1,701,523) $ 3,774,579
-------------- --------------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 65
Statements of Changes in Net Assets
ENDEAVOR SELECT FUND GROWTH FUND LARGE CAP GROWTH FUND
- ------------------------------- -------------------------------- ---------------------------
For the For the For the
Six Months Six Months Six Months
Ended Ended Ended For the
January 31, For the January 31, For the January 31, Year Ended
2010 Year Ended 2010 Year Ended 2010 July 31,
(Unaudited) July 31, 2009 (Unaudited) July 31, 2009 (Unaudited) 2009
- -------------- -------------- --------------- -------------- ------------ ------------
$1,283,244,950 $1,694,467,475 $ 1,248,439,361 $1,365,088,815 $264,776,425 $350,352,074
(745,828) 3,178,462 (3,558,914) (3,832,511) (67,753) 188,476
105,530,478 (564,295,763) 57,696,590 (107,546,979) 5,014,756 (66,106,441)
(15,225,250) 27,199,013 113,522,753 (102,284,915) 20,749,177 516,176
- -------------- -------------- --------------- -------------- ------------ ------------
89,559,400 (533,918,288) 167,660,429 (213,664,405) 25,696,180 (65,401,789)
- -------------- -------------- --------------- -------------- ------------ ------------
(355,488) 0 0 0 NA NA
(3,063,991) 0 0 0 NA NA
NA NA 0 0 (200,042) 0
0 (5,939,368) 0 0 NA NA
0 (202,063) NA NA NA NA
0 (335,195) 0 0 NA NA
0 (7,183,197) 0 0 NA NA
0 (27,764,756) 0 0 NA NA
NA NA 0 0 0 0
- -------------- -------------- --------------- -------------- ------------ ------------
(3,419,479) (41,424,579) 0 0 (200,042) 0
- -------------- -------------- --------------- -------------- ------------ ------------
16,624,134 118,470,774 38,694,726 48,287,837 NA NA
0 5,801,163 0 0 NA NA
(43,307,262) (119,667,709) (9,939,925) (33,828,620) NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
(26,683,128) 4,604,228 28,754,801 14,459,217 NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
24,823 325,707 NA NA NA NA
0 193,198 NA NA NA NA
(928,461) (2,431,334) NA NA NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
(903,638) (1,912,429) NA NA NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
528,448 3,448,867 4,010,504 1,449,693 NA NA
0 320,167 0 0 NA NA
(1,648,715) (2,547,896) (366,916) (258,432) NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
(1,120,267) 1,221,138 3,643,588 1,191,261 NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
32,020,722 139,776,629 74,094,295 161,996,212 NA NA
318,536 6,113,165 0 0 NA NA
(72,679,836) (84,855,077) (19,946,547) (62,981,828) NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
(40,340,578) 61,034,717 54,147,748 99,014,384 NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
124,463,577 417,124,892 32,897,615 75,251,619 NA NA
2,255,842 20,164,744 0 0 NA NA
(152,185,564) (338,116,948) (33,839,449) (44,082,147) NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
(25,466,145) 99,172,688 (941,834) 31,169,472 NA NA
- -------------- -------------- --------------- -------------- ------------ ------------
NA NA 37,063,707 68,819,845 7,543,748 22,659,186
NA NA 0 0 192,961 0
NA NA (44,166,478) (117,639,228) (16,067,065) (42,833,046)
- -------------- -------------- --------------- -------------- ------------ ------------
NA NA (7,102,771) (48,819,383) (8,330,356) (20,173,860)
- -------------- -------------- --------------- -------------- ------------ ------------
(94,513,756) 164,120,342 78,501,532 97,014,951 (8,330,356) (20,173,860)
- -------------- -------------- --------------- -------------- ------------ ------------
(8,373,835) (411,222,525) 246,161,961 (116,649,454) 17,165,782 (85,575,649)
- -------------- -------------- --------------- -------------- ------------ ------------
$1,274,871,115 $1,283,244,950 $ 1,494,601,322 $1,248,439,361 $281,942,207 $264,776,425
- -------------- -------------- --------------- -------------- ------------ ------------
$ (746,621) $ 3,418,686 $ (3,558,914) $ 0 $ (67,693) $ 200,102
- -------------- -------------- --------------- -------------- ------------ ------------
66 Wells Fargo Advantage Large Cap Stock Funds
Statements of Changes in Net Assets
CAPITAL GROWTH FUND
-------------------------
For the
Six Months
Ended For the
January 31, Year Ended
2010 July 31,
(Unaudited) 2009
----------- -----------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ................................................................. 100,767 535,266
Shares issued in reinvestment of distributions - Class A .............................. 0 96,712
Shares redeemed - Class A ............................................................. (259,877) (769,249)
----------- -----------
Net increase (decrease) in shares outstanding - Class A ............................... (159,110) (137,271)
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 ................................................................. 62,042 245,564
Shares issued in reinvestment of distributions - Class C .............................. 0 17,620
Shares redeemed - Class C ............................................................. (83,098) (130,617)
----------- -----------
Net increase (decrease) in shares outstanding - Class C ............................... (21,056) 132,567
----------- -----------
Shares sold - Administrator Class ..................................................... 12,480,484 58,590,210
Shares issued in reinvestment of distributions - Administrator Class .................. 103,940 1,954,219
Shares redeemed - Administrator Class ................................................. (17,928,754) (42,236,852)
----------- -----------
Net increase (decrease) in shares outstanding - Administrator Class ................... (5,344,330) 18,307,577
----------- -----------
Shares sold - Institutional Class ..................................................... 4,365,626 24,780,572
Shares issued in reinvestment of distributions - Institutional Class .................. 143,093 1,632,266
Shares redeemed - Institutional Class ................................................. (4,751,524) (19,980,244)
----------- -----------
Net increase (decrease) in shares outstanding - Institutional Class ................... (242,805) 6,432,594
----------- -----------
Shares sold - Investor Class .......................................................... 2,465,505 6,160,576
Shares issued in reinvestment of distributions - Investor Class ....................... 0 721,910
Shares redeemed - Investor Class ...................................................... (3,184,667) (9,860,222)
----------- -----------
Net decrease in shares outstanding - Investor Class ................................... (719,162) (2,977,736)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS .. (6,486,463) 21,757,731
----------- -----------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 67
Statements of Changes in Net Assets
ENDEAVOR SELECT FUND GROWTH FUND LARGE CAP GROWTH FUND
- ------------------------- ------------------------ ------------------------
For the For the For the
Six Months Six Months Six Months
Ended For the Ended For the Ended For the
January 31, Year Ended January 31, Year Ended January 31, Year Ended
2010 July 31, 2010 July 31, 2010 July 31,
(Unaudited) 2009 (Unaudited) 2009 (Unaudited) 2009
- ----------- ----------- ----------- ---------- ----------- ----------
2,128,120 15,367,930 1,619,857 2,699,601 NA NA
0 957,288 0 0 NA NA
(5,545,439) (16,839,611) (416,081) (1,899,934) NA NA
- ----------- ----------- ----------- ---------- -------- ----------
(3,417,319) (514,393) 1,203,776 799,667 NA NA
- ----------- ----------- ----------- ---------- -------- ----------
3,652 52,134 NA NA NA NA
0 34,074 NA NA NA NA
(128,479) (390,482) NA NA NA NA
- ----------- ----------- ----------- ---------- -------- ----------
(124,827) (304,274) NA NA NA NA
- ----------- ----------- ----------- ---------- -------- ----------
72,349 489,180 178,904 80,092 NA NA
0 56,566 0 0 NA NA
(225,841) (399,764) (16,171) (15,916) NA NA
- ----------- ----------- ----------- ---------- -------- ----------
(153,492) 145,982 162,733 64,176 NA NA
- ----------- ----------- ----------- ---------- -------- ----------
4,055,662 20,012,258 3,000,397 7,859,426 NA NA
39,132 1,000,518 0 0 NA NA
(9,215,106) (12,637,282) (815,546) (3,137,896) NA NA
- ----------- ----------- ----------- ---------- -------- ----------
(5,120,312) 8,375,494 2,184,851 4,721,530 NA NA
- ----------- ----------- ----------- ---------- -------- ----------
15,964,907 57,126,618 1,283,404 3,729,942 NA NA
275,455 3,278,820 0 0 NA NA
(19,225,930) (48,715,259) (1,365,748) (2,145,773) NA NA
- ----------- ----------- ----------- ---------- -------- ----------
(2,985,568) 11,690,179 (82,344) 1,584,169 NA NA
- ----------- ----------- ----------- ---------- -------- ----------
NA NA 1,560,236 3,704,370 325,205 1,159,863
NA NA 0 0 7,905 0
NA NA (1,874,681) (6,284,370) (679,995) (2,154,399)
- ----------- ----------- ----------- ---------- -------- ----------
NA NA (314,445) (2,580,000) (346,885) (994,536)
- ----------- ----------- ----------- ---------- -------- ----------
(11,801,518) 19,392,988 3,154,571 4,589,542 (346,885) (994,536)
- ----------- ----------- ----------- ---------- -------- ----------
68 Wells Fargo Advantage Large Cap Stock Funds
Statements of Changes in Net Assets
LARGE COMPANY CORE FUND
--------------------------------
For the
Six Months Ended For the
January 31, 2010 Year Ended
(Unaudited) July 31, 2009
---------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .......................................................... $ 226,215,782 $ 279,632,846
OPERATIONS
Net investment income ......................................................... 257,153 2,317,042
Net realized gain (loss) on investments ....................................... (1,477,240) (64,776,816)
Net change in unrealized appreciation (depreciation) on investments ........... 25,267,682 4,046,877
------------- -------------
Net increase (decrease) in net assets resulting from operations ............... 24,047,595 (58,412,897)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A .................................................................... (13,401) (76,843)
Class B .................................................................... 0 (11,033)
Class C .................................................................... 0 (7,101)
Administrator Class ........................................................ (121) (4,510)
Institutional Class ........................................................ (82,279) (242,519)
Investor Class ............................................................. (274,425) (1,766,656)
Net realized gain
Class A .................................................................... 0 0
Class C .................................................................... 0 0
Administrator Class ........................................................ 0 0
Institutional Class ........................................................ 0 0
Investor Class ............................................................. 0 0
------------- -------------
Total distributions to shareholders .............................................. (370,226) (2,108,662)
------------- -------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ........................................... 653,248 2,044,985
Reinvestment of distributions - Class A ....................................... 13,201 75,504
Cost of shares redeemed - Class A ............................................. (1,080,101) (3,551,915)
------------- -------------
Net increase (decrease) in net assets resulting from capital share transactions
- Class A .................................................................. (413,652) (1,431,426)
------------- -------------
Proceeds from shares sold - Class B ........................................... 26,083 26,168
Reinvestment of distributions - Class B ....................................... 0 10,863
Cost of shares redeemed - Class B ............................................. (273,000) (389,470)
------------- -------------
Net decrease in net assets resulting from capital share transactions - Class B (246,917) (352,439)
------------- -------------
Proceeds from shares sold - Class C ........................................... 26,076 113,462
Reinvestment of distributions - Class C ....................................... 0 6,866
Cost of shares redeemed - Class C ............................................. (146,400) (311,156)
------------- -------------
Net increase (decrease) in net assets resulting from capital share transactions
- Class C .................................................................. (120,324) (190,828)
------------- -------------
Proceeds from shares sold - Administrator Class ............................... 5 924,812
Reinvestment of distributions - Administrator Class ........................... 121 4,510
Cost of shares redeemed - Administrator Class ................................. (6) (1,129,451)
------------- -------------
Net increase (decrease) in net assets resulting from capital share transactions
- Administrator Class ...................................................... 120 (200,129)
------------- -------------
Proceeds from shares sold - Institutional Class ............................... 650,139 4,380,652
Reinvestment of distributions - Institutional Class ........................... 82,279 242,519
Cost of shares redeemed - Institutional Class ................................. (5,889,321) (5,152,773)
------------- -------------
Net increase (decrease) in net assets resulting from capital share transactions
- Institutional Class ...................................................... (5,156,903) (529,602)
------------- -------------
Proceeds from shares sold - Investor Class .................................... 38,627,447 127,967,145
Reinvestment of distributions - Investor Class ................................ 185,091 1,335,598
Cost of shares redeemed - Investor Class ...................................... (19,787,621) (119,493,824)
------------- -------------
Net increase (decrease) in net assets resulting from capital share transactions
- Investor Class ........................................................... 19,024,917 9,808,919
------------- -------------
Net increase (decrease) in net assets resulting from capital share transactions -
Total ......................................................................... 13,087,241 7,104,495
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ............................................ 36,764,610 (53,417,064)
============= =============
ENDING NET ASSETS ................................................................ $ 262,980,392 $ 226,215,782
============= =============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............................ $ 227,458 $ 340,531
============= =============
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 69
Statements of Changes in Net Assets
LARGE COMPANY VALUE FUND U.S. VALUE FUND
- -------------------------------- --------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
January 31, 2010 Year Ended January 31, 2010 Year Ended
(Unaudited) July 31, 2009 (Unaudited) July 31, 2009
- ---------------- ------------- ---------------- -------------
$ 107,562,279 $ 153,984,039 $ 124,964,960 $ 150,908,468
466,478 2,230,340 713,829 2,478,853
(376,044) (26,556,662) 3,209,620 (20,717,552)
11,529,133 (9,417,741) 9,804,666 (6,395,714)
------------- ------------- ------------- -------------
11,619,567 (33,744,063) 13,728,115 (24,634,413)
------------- ------------- ------------- -------------
(429) (1,782) (4,270) (19,038)
NA NA (1,388) (16,787)
(193) (631) (1,488) (10,460)
(583) (6,884) (751,500) (2,207,569)
(28) (207) NA NA
(228,756) (2,311,530) (112,912) (402,374)
0 (5,328) 0 0
0 (750) 0 0
0 (34,974) 0 0
0 (767) NA NA
0 (11,188,567) 0 0
------------- ------------- ------------- -------------
(229,989) (13,551,420) (871,558) (2,656,228)
------------- ------------- ------------- -------------
54,399 143,416 81,517 338,081
429 7,110 3,846 18,114
(3,359) (2,691) (104,734) (627,341)
------------- ------------- ------------- -------------
51,469 147,835 (19,371) (271,146)
------------- ------------- ------------- -------------
NA NA 0 6,781
NA NA 1,376 16,098
NA NA (255,834) (666,139)
------------- ------------- ------------- -------------
NA NA (254,458) (643,260)
------------- ------------- ------------- -------------
0 228,792 292,637 74,942
193 1,381 1,185 8,614
(6,203) 0 (230,095) (239,935)
------------- ------------- ------------- -------------
(6,010) 230,173 63,727 (156,379)
------------- ------------- ------------- -------------
130,500 213,787 6,421,548 10,630,696
564 41,186 751,188 2,205,453
(91,872) (2,246,395) (8,112,166) (9,424,656)
------------- ------------- ------------- -------------
39,192 (1,991,422) (939,430) 3,411,493
------------- ------------- ------------- -------------
0 0 NA NA
28 974 NA NA
0 0 NA NA
------------- ------------- ------------- -------------
28 974 NA NA
------------- ------------- ------------- -------------
2,411,962 10,523,458 645,373 1,646,329
212,921 12,574,559 108,114 384,893
(9,027,347) (20,611,854) (1,372,987) (3,024,797)
------------- ------------- ------------- -------------
(6,402,464) 2,486,163 (619,500) (993,575)
------------- ------------- ------------- -------------
(6,317,785) 873,723 (1,769,032) 1,347,133
------------- ------------- ------------- -------------
5,071,793 (46,421,760) 11,087,525 (25,943,508)
============= ============= ============= =============
$ 112,634,072 $ 107,562,279 $ 136,052,485 $ 124,964,960
============= ============= ============= =============
$ 283,138 $ 46,649 $ 27,715 $ 185,444
============= ============= ============= =============
70 Wells Fargo Advantage Large Cap Stock Funds
Statements of Changes in Net Assets
LARGE COMPANY CORE FUND
--------------------------------
For the
Six Months Ended For the
January 31, 2010 Year Ended
(Unaudited) July 31, 2009
---------------- -------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .................................................................. 33,295 133,842
Shares issued in reinvestment of distributions - Class A ............................... 667 4,814
Shares redeemed - Class A .............................................................. (56,253) (227,003)
---------- ----------
Net increase (decrease) in shares outstanding - Class A ................................ (22,291) (88,347)
---------- ----------
Shares sold - Class B .................................................................. 1,331 1,897
Shares issued in reinvestment of distributions - Class B ............................... NA 702
Shares redeemed - Class B .............................................................. (14,205) (25,956)
---------- ----------
Net decrease in shares outstanding - Class B ........................................... (12,874) (23,357)
---------- ----------
Shares sold - Class C .................................................................. 1,334 7,077
Shares issued in reinvestment of distributions - Class C ............................... 0 447
Shares redeemed - Class C .............................................................. (7,688) (17,245)
---------- ----------
Net increase (decrease) in shares outstanding - Class C ................................ (6,354) (9,721)
---------- ----------
Shares sold - Administrator Class ...................................................... 0 61,526
Shares issued in reinvestment of distributions - Administrator Class ................... 6 300
Shares redeemed - Administrator Class .................................................. 0 (74,680)
---------- ----------
Net increase (decrease) in shares outstanding - Administrator Class .................... 6 (12,854)
---------- ----------
Shares sold - Institutional Class ...................................................... 33,550 269,285
Shares issued in reinvestment of distributions - Institutional Class ................... 4,120 15,286
Shares redeemed - Institutional Class .................................................. (296,635) (326,357)
---------- ----------
Net increase (decrease) in shares outstanding - Institutional Class .................... (258,965) (41,786)
---------- ----------
Shares sold - Investor Class ........................................................... 1,993,880 8,404,556
Shares issued in reinvestment of distributions - Investor Class ........................ 9,302 86,142
Shares redeemed - Investor Class ....................................................... (1,022,883) (8,245,595)
---------- ----------
Net increase (decrease) in shares outstanding - Investor Class ......................... 980,299 245,103
---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 679,821 69,038
========== ==========
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 71
Statements of Changes in Net Assets
LARGE COMPANY VALUE FUND U.S. VALUE FUND
- -------------------------------- -------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
January 31, 2010 Year Ended January 31, 2010 Year Ended
(Unaudited) July 31, 2009 (Unaudited) July 31, 2009
- ---------------- ------------- ---------------- -------------
4,931 15,344 8,125 36,655
40 780 373 1,970
(331) (339) (10,452) (77,184)
-------- ---------- -------- ---------
4,640 15,785 (1,954) (38,559)
-------- ---------- -------- ---------
NA NA 0 800
NA NA 133 1,806
NA NA (25,410) (72,769)
-------- ---------- -------- ---------
NA NA (25,277) (70,163)
-------- ---------- -------- ---------
0 26,519 29,077 9,197
18 149 117 973
(527) 0 (22,702) (27,009)
-------- ---------- -------- ---------
(509) 26,668 6,492 (16,839)
-------- ---------- -------- ---------
12,497 15,453 646,847 1,196,776
53 4,411 73,947 248,423
(8,268) (167,782) (838,715) (882,326)
-------- ---------- -------- ---------
4,282 (147,918) (117,921) 562,873
-------- ---------- -------- ---------
0 0 NA NA
3 105 NA NA
0 0 NA NA
-------- ---------- -------- ---------
3 105 NA NA
-------- ---------- -------- ---------
217,452 1,024,825 60,970 184,893
19,660 1,328,627 10,333 42,115
(815,865) (2,042,750) (130,860) (335,701)
-------- ---------- -------- ---------
(578,753) 310,702 (59,557) (108,693)
-------- ---------- -------- ---------
(570,337) 205,342 (198,217) 328,619
======== ========== ======== =========
72 Wells Fargo Advantage Large Cap Stock Funds
Financial Highlights
Beginning Net Net Realized Distributions
Net Asset Investment and Unrealized from Net
Value Per Income Gain (Loss) Investment
Share (Loss) on Investments Income
--------- ---------- -------------- -------------
CAPITAL GROWTH FUND
Class A
August 1, 2009 to January 31, 2010 (Unaudited) .. $11.83 (0.03)(4) 0.87 0.00
August 1, 2008 to July 31, 2009 ................. $17.60 0.00(3, 4) (5.26) 0.00
August 1, 2007 to July 31, 2008 ................. $18.64 (0.08)(4) 0.08 0.00
July 31, 2007(8) ................................ $18.64 0.00 0.00 0.00
Class C
August 1, 2009 to January 31, 2010 (Unaudited) .. $11.65 (0.08)(4) 0.86 0.00
August 1, 2008 to July 31, 2009 ................. $17.47 (0.08)(4) (5.23) 0.00
August 1, 2007 to July 31, 2008 ................. $18.64 (0.22)(4) 0.09 0.00
July 31, 2007(8) ................................ $18.64 0.00 0.00 0.00
Administrator Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $12.17 (0.01)(4) 0.90 (0.04)
August 1, 2008 to July 31, 2009 ................. $18.03 0.04(4) (5.39) 0.00
August 1, 2007 to July 31, 2008 ................. $19.03 (0.02)(4) 0.06 0.00
August 1, 2006 to July 31, 2007 ................. $16.07 (0.02)(4) 3.08 0.00
August 1, 2005 to July 31, 2006 ................. $16.70 (0.03)(4) (0.12) 0.00
January 1, 2005 to July 31, 2005(5) ............. $15.82 (0.02)(4) 0.91 0.00
January 1, 2004 to December 31, 2004 ............ $13.40 (0.01) 2.43(6) 0.00
Institutional Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $12.27 0.00(3, 4) 0.91 (0.06)
August 1, 2008 to July 31, 2009 ................. $18.14 0.06(4) (5.42) 0.00
August 1, 2007 to July 31, 2008 ................. $19.10 0.01(4) 0.07 0.00
August 1, 2006 to July 31, 2007 ................. $16.10 0.02(4) 3.08 0.00
August 1, 2005 to July 31, 2006 ................. $16.71 0.00(3, 4) (0.13) 0.00
April 11, 2005(7) to July 31, 2005 .............. $15.21 0.00(3, 4) 1.50 0.00
Investor Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $11.79 (0.04)(4) 0.87 0.00
August 1, 2008 to July 31, 2009 ................. $17.56 (0.01)(4) (5.25) 0.00
August 1, 2007 to July 31, 2008 ................. $18.64 (0.10)(4) 0.06 0.00
August 1, 2006 to July 31, 2007 ................. $15.81 (0.10)(4) 3.03 0.00
August 1, 2005 to July 31, 2006 ................. $16.52 (0.11)(4) (0.12) 0.00
January 1, 2005 to July 31, 2005(5) ............. $15.70 (0.06)(4) 0.89 0.00
January 1, 2004 to December 31, 2004 ............ $13.36 (0.06) 2.40 0.00
- ----------
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. Amount calculated is less than $0.005.
4. Calculated based upon average shares outstanding.
5. In 2005, the Fund changed its fiscal year end from December 31 to July 31.
6. Includes redemption fee of $0.01.
7. Commencement of class operations.
8. Class A and Class C were incepted on July 31, 2007 and had no activity
during the year.
9. On June 20, 2008 Advisor Class was renamed to Class A and Class Z was
renamed to Investor Class.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 73
Financial Highlights
Ratio to Average Net Assets
(Annualized)
--------------------------------- Net Assets
Distributions Ending Net at End of
from Net Net Asset Investment Portfolio Period
Realized Value Per Income Gross Net Total Turnover (000's
Gains Share (Loss) Expenses Expenses Return(1) Rate(2) omitted)
- ------------- --------- ---------- -------- --------- --------- --------- ----------
0.00 $12.67 (0.52)% 1.28% 1.25% 7.10% 60% $ 20,542
(0.51) $11.83 (0.01)% 1.31% 1.25% (29.23)% 172% $ 21,064
(1.04) $17.60 (0.45)% 1.22% 1.22% (0.46)% 151% $ 33,756
0.00 $18.64 0.00% 0.00% 0.00% 0.00% 114% $ 10
0.00 $12.43 (1.27)% 2.03% 2.00% 6.70% 60% $ 6,963
(0.51) $11.65 (0.70)% 2.02% 1.96% (29.75)% 172% $ 6,772
(1.04) $17.47 (1.21)% 2.14% 2.00% (1.18)% 151% $ 7,835
0.00 $18.64 0.00% 0.00% 0.00% 0.00% 114% $ 10
0.00 $13.02 (0.22)% 1.10% 0.94% 7.26% 60% $658,780
(0.51) $12.17 0.33% 1.13% 0.94% (29.02)% 172% $680,869
(1.04) $18.03 (0.11)% 1.12% 0.94% (0.24)% 151% $678,414
(0.10) $19.03 (0.09)% 1.18% 0.94% 19.08% 114% $500,499
(0.48) $16.07 (0.19)% 1.21% 0.94% (1.10)% 89% $380,588
(0.01) $16.70 (0.24)% 1.27% 0.93% 5.64% 57% $ 75,840
0.00 $15.82 (0.08)% 1.32% 0.94% 18.06% 239% $ 4,895
0.00 $13.12 (0.04)% 0.83% 0.75% 7.37% 60% $471,445
(0.51) $12.27 0.51% 0.86% 0.75% (28.90)% 172% $443,931
(1.04) $18.14 0.07% 0.85% 0.75% (0.02)% 151% $539,373
(0.10) $19.10 0.11% 0.91% 0.76% 19.36% 114% $281,353
(0.48) $16.10 (0.03)% 0.94% 0.80% (0.98)% 89% $109,801
0.00 $16.71 (0.10)% 0.98% 0.80% 9.86% 57% $ 44,171
0.00 $12.62 (0.63)% 1.37% 1.35% 7.04% 60% $226,402
(0.51) $11.79 (0.12)% 1.41% 1.36% (29.30)% 172% $220,008
(1.04) $17.56 (0.54)% 1.42% 1.39% (0.68)% 151% $379,966
(0.10) $18.64 (0.56)% 1.53% 1.42% 18.63% 114% $374,723
(0.48) $15.81 (0.64)% 1.55% 1.42% (1.61)% 89% $236,878
(0.01) $16.52 (0.71)% 1.67% 1.44% 5.30% 57% $182,934
0.00 $15.70 (0.55)% 1.77% 1.44% 17.51% 239% $ 99,455
74 Wells Fargo Advantage Large Cap Stock Funds
Financial Highlights
Beginning Net Net Realized Distributions
Net Asset Investment and Unrealized from Net
Value Per Income Gain (Loss) Investment
Share (Loss) on Investments Income
--------- ---------- -------------- -------------
ENDEAVOR SELECT FUND
Class A
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 7.25 (0.02)(4) 0.50 0.00
August 1, 2008 to July 31, 2009 ................. $10.81 (0.01)(4) (3.29) 0.00
August 1, 2007 to July 31, 2008 ................. $10.85 (0.04)(4) 0.10 0.00
August 1, 2006 to July 31, 2007 ................. $ 9.35 (0.04)(4) 1.54 0.00
August 1, 2005 to July 31, 2006 ................. $ 9.47 (0.05)(4) 0.02 0.00
January 1, 2005 to July 31, 2005(5) ............. $ 9.16 (0.04)(4) 0.56 0.00
January 1, 2004 to December 31, 2004 ............ $ 8.36 (0.09)(4) 1.47 0.00
Class B
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 6.75 (0.04)(4) 0.46 0.00
August 1, 2008 to July 31, 2009 ................. $10.18 (0.06)(4) (3.11) 0.00
August 1, 2007 to July 31, 2008 ................. $10.29 (0.12)(4) 0.11 0.00
August 1, 2006 to July 31, 2007 ................. $ 8.94 (0.11)(4) 1.46 0.00
August 1, 2005 to July 31, 2006 ................. $ 9.12 (0.12)(4) 0.03 0.00
January 1, 2005 to July 31, 2005(5) ............. $ 8.87 (0.07)(4) 0.53 0.00
January 1, 2004 to December 31, 2004 ............ $ 8.18 (0.15)(4) 1.42 0.00
Class C
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 6.75 (0.04)(4) 0.46 0.00
August 1, 2008 to July 31, 2009 ................. $10.18 (0.05)(4) (3.12) 0.00
August 1, 2007 to July 31, 2008 ................. $10.28 (0.12)(4) 0.12 0.00
August 1, 2006 to July 31, 2007 ................. $ 8.93 (0.11)(4) 1.46 0.00
August 1, 2005 to July 31, 2006 ................. $ 9.11 (0.12)(4) 0.03 0.00
January 1, 2005 to July 31, 2005(5) ............. $ 8.87 (0.08)(4) 0.53 0.00
January 1, 2004 to December 31, 2004 ............ $ 8.18 (0.16)(4) 1.43 0.00
Administrator Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 7.34 (0.01)(4) 0.50 (0.01)
August 1, 2008 to July 31, 2009 ................. $10.91 0.01(4) (3.32) 0.00
August 1, 2007 to July 31, 2008 ................. $10.91 (0.01)(4) 0.11 0.00
August 1, 2006 to July 31, 2007 ................. $ 9.37 (0.01)(4) 1.55 0.00
August 1, 2005 to July 31, 2006 ................. $ 9.47 (0.02)(4) 0.01 0.00
April 11, 2005(7) to July 31, 2005 .............. $ 8.60 (0.02)(4) 0.89 0.00
Institutional Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 7.39 0.00(3, 4) 0.51 (0.03)
August 1, 2008 to July 31, 2009 ................. $10.97 0.03(4) (3.35) 0.00
August 1, 2007 to July 31, 2008 ................. $10.96 0.01(4) 0.11 (0.01)
August 1, 2006 to July 31, 2007 ................. $ 9.40 0.01(4) 1.55 0.00
August 1, 2005 to July 31, 2006 ................. $ 9.47 (0.01)(4) 0.03 0.00
April 11, 2005(7) to July 31, 2005 .............. $ 8.60 (0.01)(4) 0.88 0.00
GROWTH FUND
Class A
August 1, 2009 to January 31, 2010 (Unaudited) .. $21.13 (0.07)(4) 2.92 0.00
August 1, 2008 to July 31, 2009 ................. $25.20 (0.08)(4) (3.99) 0.00
August 1, 2007 to July 31, 2008(9) .............. $26.36 (0.16)(4) (1.00) 0.00
August 1, 2006 to July 31, 2007 ................. $20.45 (0.15)(4) 6.06 0.00
August 1, 2005 to July 31, 2006 ................. $19.84 (0.16)(4) 0.77 0.00
January 1, 2005 to July 31, 2005(5) ............. $19.22 (0.10)(4) 0.72 0.00
January 1, 2004 to December 31, 2004 ............ $17.09 (0.15)(4) 2.28 0.00
Class C
August 1, 2009 to January 31, 2010 (Unaudited) .. $20.24 (0.16)(4) 2.80 0.00
August 1, 2008 to July 31, 2009 ................. $24.30 (0.21)(4) (3.85) 0.00
August 1, 2007 to July 31, 2008 ................. $25.62 (0.35)(4) (0.97) 0.00
August 1, 2006 to July 31, 2007 ................. $20.03 (0.31)(4) 5.90 0.00
August 1, 2005 to July 31, 2006 ................. $19.57 (0.32)(4) 0.78 0.00
January 1, 2005 to July 31, 2005(5) ............. $19.00 (0.14)(4) 0.71 0.00
January 1, 2004 to December 31, 2004 ............ $17.03 (0.30)(4) 2.27 0.00
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 75
Financial Highlights
Ratio to Average Net Assets
(Annualized)
--------------------------------- Net Assets
Distributions Ending Net at End of
from Net Net Asset Investment Portfolio Period
Realized Value Per Income Gross Net Total Turnover (000's
Gains Share (Loss) Expenses Expenses Return(1) Rate(2) omitted)
- ------------- --------- ---------- -------- --------- --------- --------- ----------
0.00 $ 7.73 (0.45)% 1.29% 1.25% 6.62% 76% $ 139,512
(0.26) $ 7.25 (0.08)% 1.32% 1.25% (30.10)% 173% $ 155,666
(0.10) $10.81 (0.38)% 1.31% 1.25% 0.50% 154% $ 237,689
0.00(3) $10.85 (0.40)% 1.36% 1.25% 16.05% 91% $ 162,421
(0.09) $ 9.35 (0.53)% 1.40% 1.25% (0.33)% 84% $ 148,765
(0.21) $ 9.47 (0.73)% 1.53% 1.39% 5.93% 54% $ 50,932
(0.58) $ 9.16 (1.05)% 1.61% 1.57% 16.80% 169% $ 94,805
0.00 $ 7.17 (1.19)% 2.04% 2.00% 6.22% 76% $ 3,327
(0.26) $ 6.75 (0.85)% 2.07% 2.00% (30.71)% 173% $ 3,976
(0.10) $10.18 (1.12)% 2.06% 2.00% (0.15)% 154% $ 9,097
0.00(3) $10.29 (1.16)% 2.11% 2.00% 15.11% 91% $ 10,596
(0.09) $ 8.94 (1.28)% 2.15% 2.00% (1.01)% 84% $ 11,353
(0.21) $ 9.12 (1.47)% 2.28% 2.13% 5.44% 54% $ 4,403
(0.58) $ 8.87 (1.72)% 2.39% 2.35% 15.82% 169% $ 1,800
0.00 $ 7.17 (1.19)% 2.04% 2.00% 6.22% 76% $ 8,605
(0.26) $ 6.75 (0.82)% 2.07% 2.00% (30.70)% 173% $ 9,139
(0.10) $10.18 (1.13)% 2.06% 2.00% (0.06)% 154% $ 12,297
0.00(3) $10.28 (1.14)% 2.11% 2.00% 15.12% 91% $ 9,805
(0.09) $ 8.93 (1.30)% 2.15% 2.00% (1.01)% 84% $ 6,890
(0.21) $ 9.11 (1.52)% 2.32% 2.18% 5.33% 54% $ 1,802
(0.58) $ 8.87 (1.82)% 2.41% 2.37% 15.82% 169% $ 1,080
0.00 $ 7.82 (0.20)% 1.10% 1.00% 6.70% 76% $ 223,516
(0.26) $ 7.34 0.20% 1.14% 1.00% (29.91)% 173% $ 247,298
(0.10) $10.91 (0.12)% 1.12% 1.00% 0.87% 154% $ 276,388
0.00(3) $10.91 (0.14)% 1.17% 1.00% 16.44% 91% $ 108,062
(0.09) $ 9.37 (0.25)% 1.22% 1.00% (0.12)% 84% $ 74,520
0.00 $ 9.47 (0.67)% 1.30% 1.00% 10.12% 54% $ 79,964
0.00 $ 7.87 (0.01)% 0.84% 0.80% 6.84% 76% $ 899,911
(0.26) $ 7.39 0.38% 0.88% 0.80% (29.84)% 173% $ 867,167
(0.10) $10.97 0.07% 0.86% 0.80% 1.06% 154% $1,158,997
0.00(3) $10.96 0.06% 0.91% 0.80% 16.60% 91% $1,099,424
(0.09) $ 9.40 (0.12)% 0.95% 0.80% 0.20% 84% $ 534,868
0.00 $ 9.47 (0.20)% 1.03% 0.80% 10.12% 54% $ 161
0.00 $23.98 (0.61)% 1.32% 1.30% 13.49% 35% $ 81,338
0.00 $21.13 (0.44)% 1.35% 1.29% (16.15)% 88% $ 46,250
0.00 $25.20 (0.60)% 1.35% 1.30% (4.40)% 122% $ 34,992
0.00 $26.36 (0.63)% 1.34% 1.30% 28.85% 117% $ 23,142
0.00 $20.45 (0.77)% 1.33% 1.30% 3.07% 123% $ 16,468
0.00 $19.84 (0.93)% 1.43% 1.39% 3.23% 76% $ 9,762
0.00 $19.22 (0.86)% 1.59% 1.54% 12.46% 92% $ 6,357
0.00 $22.88 (1.39)% 2.08% 2.05% 12.99% 35% $ 6,421
0.00 $20.24 (1.17)% 2.07% 2.02% (16.71)% 88% $ 2,387
0.00 $24.30 (1.36)% 2.11% 2.05% (5.15)% 122% $ 1,307
0.00 $25.62 (1.35)% 2.09% 2.05% 27.86% 117% $ 325
0.00 $20.03 (1.52)% 2.08% 2.05% 2.35% 123% $ 170
0.00 $19.57 (1.36)% 1.94% 1.79% 3.00% 76% $ 146
0.00 $19.00 (1.74)% 3.35% 2.42% 11.57% 92% $ 314
76 Wells Fargo Advantage Large Cap Stock Funds
Financial Highlights
Beginning Net Net Realized Distributions
Net Asset Investment and Unrealized from Net
Value Per Income Gain (Loss) Investment
Share (Loss) on Investments Income
--------- ---------- -------------- -------------
GROWTH FUND (continued)
Administrator Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $21.98 (0.03)(4) 3.03 0.00
August 1, 2008 to July 31, 2009 ................. $26.12 (0.01)(4) (4.13) 0.00
August 1, 2007 to July 31, 2008 ................. $27.23 (0.07)(4) (1.04) 0.00
August 1, 2006 to July 31, 2007 ................. $21.06 (0.07)(4) 6.24 0.00
August 1, 2005 to July 31, 2006 ................. $20.35 (0.10)(4) 0.81 0.00
January 1, 2005 to July 31, 2005(5) ............. $19.68 (0.06)(4) 0.73 0.00
January 1, 2004 to December 31, 2004 ............ $17.38 (0.03)(4) 2.33 0.00
Institutional Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $22.46 (0.01)(4) 3.10 0.00
August 1, 2008 to July 31, 2009 ................. $26.65 0.01(4) (4.20) 0.00
August 1, 2007 to July 31, 2008 ................. $27.74 (0.03)(4) (1.06) 0.00
August 1, 2006 to July 31, 2007 ................. $21.42 (0.04)(4) 6.36 0.00
August 1, 2005 to July 31, 2006 ................. $20.68 (0.07)(4) 0.81 0.00
January 1, 2005 to July 31, 2005(5) ............. $19.99 (0.05)(4) 0.74 0.00
January 1, 2004 to December 31, 2004 ............ $17.65 (0.03)(4) 2.37 0.00
Investor Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $21.14 (0.08)(4) 2.91 0.00
August 1, 2008 to July 31, 2009 ................. $25.23 (0.10)(4) (3.99) 0.00
August 1, 2007 to July 31, 2008 ................. $26.43 (0.20)(4) (1.00) 0.00
August 1, 2006 to July 31, 2007 ................. $20.55 (0.19)(4) 6.07 0.00
August 1, 2005 to July 31, 2006 ................. $19.96 (0.20)(4) 0.79 0.00
January 1, 2005 to July 31, 2005(5) ............. $19.35 (0.11)(4) 0.72 0.00
January 1, 2004 to December 31, 2004 ............ $17.19 (0.13)(4) 2.29 0.00
LARGE CAP GROWTH FUND
Investor Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $21.77 (0.02)(4) 2.13 (0.02)
August 1, 2008 to July 31, 2009 ................. $26.62 0.02(4) (4.87) 0.00
August 1, 2007 to July 31, 2008 ................. $27.18 (0.04) (0.52) 0.00
August 1, 2006 to July 31, 2007 ................. $23.18 (0.07) 4.07 0.00
August 1, 2005 to July 31, 2006 ................. $23.57 (0.10) (0.29) 0.00
January 1, 2005 to July 31, 2005(5) ............. $22.75 (0.07) 0.89 0.00
January 1, 2004 to December 31, 2004 ............ $20.94 (0.07) 1.88 0.00
LARGE COMPANY CORE FUND
Class A
August 1, 2009 to January 31, 2010 (Unaudited) .. $17.49 0.03(4) 1.84 (0.04)
August 1, 2008 to July 31, 2009 ................. $21.74 0.19(4) (4.26) (0.18)
August 1, 2007 to July 31, 2008(9) .............. $25.04 0.21(4) (3.31) (0.20)
August 1, 2006 to July 31, 2007 ................. $20.31 0.11(4) 4.76 (0.14)
August 1, 2005 to July 31, 2006 ................. $20.70 0.10(4) (0.38) (0.11)
January 1, 2005 to July 31, 2005(5) ............. $21.21 0.05(4) (0.51) (0.05)
January 1, 2004 to December 31, 2004 ............ $19.57 0.08 1.65 (0.09)
Class B
August 1, 2009 to January 31, 2010 (Unaudited) .. $17.45 (0.04)(4) 1.82 0.00
August 1, 2008 to July 31, 2009 ................. $21.74 0.08(4) (4.27) (0.10)
July 18, 2008(7) to July 31, 2008 ............... $21.69 0.00(3, 4) 0.05 0.00
Class C
August 1, 2009 to January 31, 2010 (Unaudited) .. $17.45 (0.04) 1.83 0.00
August 1, 2008 to July 31, 2009 ................. $21.74 0.08(4) (4.27) (0.10)
July 18, 2008(7) to July 31, 2008 ............... $21.69 0.00(3, 4) 0.05 0.00
Administrator Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $17.51 0.05(4) 1.83 (0.05)
August 1, 2008 to July 31, 2009 ................. $21.75 0.22(4) (4.27) (0.19)
August 1, 2007 to July 31, 2008 ................. $25.05 0.18(4) (3.24) (0.24)
August 1, 2006 to July 31, 2007 ................. $20.27 0.54(4) 4.37 (0.13)
August 1, 2005 to July 31, 2006 ................. $20.67 0.14(4) (0.39) (0.15)
January 1, 2005 to July 31, 2005(5) ............. $21.17 0.09(4) (0.51) (0.08)
January 1, 2004 to December 31, 2004 ............ $19.52 0.19 1.63 (0.17)
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 77
Financial Highlights
Ratio to Average Net Assets
(Annualized)
--------------------------------- Net Assets
Ending Net at End of
Net Asset Investment Portfolio Period
Value Per Income Gross Net Total Turnover (000's
Share (Loss) Expenses Expenses Return(1) Rate(2) omitted)
- --------- ---------- -------- --------- --------- --------- ----------
$24.98 (0.27)% 1.14% 0.96% 13.65% 35% $ 277,672
$21.98 (0.07)% 1.18% 0.96% (15.85)% 88% $ 196,301
$26.12 (0.25)% 1.17% 0.96% (4.08)% 122% $ 109,958
$27.23 (0.29)% 1.16% 0.96% 29.25% 117% $ 128,523
$21.06 (0.44)% 1.16% 0.96% 3.49% 123% $ 110,565
$20.35 (0.51)% 1.20% 0.96% 3.40% 76% $ 65,886
$19.68 (0.19)% 1.31% 0.95% 13.23% 92% $ 66,658
$25.55 (0.09)% 0.87% 0.80% 13.76% 35% $ 288,247
$22.46 0.07% 0.91% 0.80% (15.72)% 88% $ 255,282
$26.65 (0.10)% 0.90% 0.80% (3.93)% 122% $ 260,671
$27.74 (0.14)% 0.89% 0.82% 29.46% 117% $ 264,648
$21.42 (0.33)% 0.88% 0.85% 3.58% 123% $ 179,549
$20.68 (0.47)% 0.96% 0.92% 3.45% 76% $ 315,764
$19.99 (0.17)% 0.93% 0.89% 13.26% 92% $ 294,892
$23.97 (0.69)% 1.42% 1.40% 13.39% 35% $ 840,923
$21.14 (0.54)% 1.46% 1.40% (16.21)% 88% $ 748,218
$25.23 (0.73)% 1.49% 1.44% (4.54)% 122% $ 958,160
$26.43 (0.80)% 1.51% 1.47% 28.61% 117% $1,063,168
$20.55 (0.95)% 1.50% 1.47% 2.96% 123% $ 974,189
$19.96 (1.03)% 1.52% 1.48% 3.15% 76% $1,182,352
$19.35 (0.77)% 1.52% 1.48% 12.57% 92% $1,146,002
$23.86 (0.05)% 1.44% 1.19% 9.63% 25% $ 281,942
$21.77 0.07% 1.46% 1.19% (18.22)% 81% $ 264,776
$26.62 (0.13)% 1.47% 1.19% (2.06)% 131% $ 350,352
$27.18 (0.26)% 1.53% 1.19% 17.26% 113% $ 388,700
$23.18 (0.37)% 1.51% 1.19% (1.65)% 98% $ 395,581
$23.57 (0.50)% 1.40% 1.22% 3.60% 50% $ 468,519
$22.75 (0.30)% 1.24% 1.20% 8.64% 89% $ 518,431
$19.32 0.30% 1.36% 1.14% 10.66% 6% $ 7,364
$17.49 1.20% 1.40% 1.14% (18.64)% 47% $ 7,058
$21.74 0.90% 1.39% 1.14% (12.44)% 45% $ 10,694
$25.04 0.48% 1.36% 1.14% 24.06% 56% $ 3,629
$20.31 0.47% 1.35% 1.14% (1.36)% 16% $ 2,908
$20.70 0.42% 1.39% 1.25% (2.14)% 74% $ 5,007
$21.21 0.36% 1.44% 1.38% 8.85% 136% $ 6,068
$19.23 (0.44)% 2.12% 1.89% 10.20% 6% $ 1,562
$17.45 0.52% 2.03% 1.83% (19.19)% 47% $ 1,642
$21.74 0.39% 2.14% 1.89% 0.23% 45% $ 2,553
$19.24 (0.44)% 2.12% 1.89% 10.26% 6% $ 1,258
$17.45 0.49% 2.07% 1.83% (19.20)% 47% $ 1,252
$21.74 0.39% 2.14% 1.89% 0.23% 45% $ 1,771
$19.34 0.48% 1.19% 0.95% 10.75% 6% $ 44
$17.51 1.44% 1.25% 0.95% (18.49)% 47% $ 40
$21.75 0.77% 1.21% 0.96% (12.31)% 45% $ 329
$25.05 2.47% 1.18% 0.93% 24.25% 56% $ 435
$20.27 0.66% 1.22% 0.96% (1.22)% 16% $ 41,066
$20.67 0.75% 1.15% 0.96% (1.96)% 74% $ 100,221
$21.17 0.77% 1.09% 0.94% 9.35% 136% $ 19,836
78 Wells Fargo Advantage Large Cap Stock Funds
Financial Highlights
Beginning Net Net Realized Distributions
Net Asset Investment and Unrealized from Net
Value Per Income Gain (Loss) Investment
Share (Loss) on Investments Income
--------- ---------- -------------- -------------
LARGE COMPANY CORE FUND (continued)
Institutional Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $17.69 0.08(4) 1.85 (0.11)
August 1, 2008 to July 31, 2009 ................. $21.96 0.27(4) (4.30) (0.24)
August 1, 2007 to July 31, 2008 ................. $25.30 0.33(4) (3.35) (0.32)
August 1, 2006 to July 31, 2007 ................. $20.51 0.23(4) 4.81 (0.25)
August 1, 2005 to July 31, 2006 ................. $20.91 0.20(4) (0.39) (0.21)
January 1, 2005 to July 31, 2005(5) ............. $21.41 0.12(4) (0.50) (0.12)
January 1, 2004 to December 31, 2004 ............ $19.72 0.26 1.62 (0.19)
Investor Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $17.59 0.00(3,4) 1.86 (0.02)
August 1, 2008 to July 31, 2009 ................. $21.87 0.17(4) (4.30) (0.15)
August 1, 2007 to July 31, 2008 ................. $25.19 0.17(4) (3.33) (0.16)
August 1, 2006 to July 31, 2007 ................. $20.42 0.08(4) 4.79 (0.10)
August 1, 2005 to July 31, 2006 ................. $20.82 0.06(4) (0.39) (0.07)
January 1, 2005 to July 31, 2005(5) ............. $21.33 0.04(4) (0.50) (0.05)
January 1, 2004 to December 31, 2004 ............ $19.68 0.09 1.66 (0.10)
LARGE COMPANY VALUE FUND
Class A
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 9.84 0.05(4) 1.01 (0.02)
August 1, 2008 to July 31, 2009 ................. $14.43 0.17(4) (3.39) (0.24)
March 31, 2008(7) to July 31, 2008 .............. $14.92 0.08(4) (0.51) (0.06)
Class C
August 1, 2009 to January 31, 2010 (Unaudited) .. $10.03 0.01(4) 1.05 (0.01)
August 1, 2008 to July 31, 2009 ................. $14.66 0.06(4) (3.40) (0.16)
March 31, 2008(7) to July 31, 2008 .............. $15.17 0.04(4) (0.52) (0.03)
Administrator Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 9.87 0.07(4) 1.02 (0.03)
August 1, 2008 to July 31, 2009 ................. $14.43 0.31(4) (3.49) (0.25)
August 1, 2007 to July 31, 2008 ................. $17.09 0.33(4) (1.46) (0.34)
August 1, 2006 to July 31, 2007 ................. $16.76 0.38(4) 1.51 (0.38)
August 1, 2005 to July 31, 2006 ................. $16.53 0.36 0.96 (0.31)
January 1, 2005 to July 31, 2005(5) ............. $16.17 0.14 0.99 (0.12)
January 1, 2004 to December 31, 2004 ............ $14.39 0.27 1.79 (0.28)
Institutional Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $ 9.86 0.08(4) 1.02 (0.04)
August 1, 2008 to July 31, 2009 ................. $14.43 0.26(4) (3.42) (0.28)
March 31, 2008(7) to July 31, 2008 .............. $14.92 0.10(4) (0.52) (0.07)
Investor Class
August 1, 2009 to January 31, 2010 (Unaudited) .. $10.05 0.04(4) 1.04 (0.02)
August 1, 2008 to July 31, 2009 ................. $14.67 0.21(4) (3.48) (0.22)
August 1, 2007 to July 31, 2008 ................. $17.35 0.28(4) (1.50) (0.27)
August 1, 2006 to July 31, 2007 ................. $16.99 0.29(4) 1.56 (0.31)
August 1, 2005 to July 31, 2006 ................. $16.74 0.27 1.00 (0.24)
January 1, 2005 to July 31, 2005(5) ............. $16.38 0.10 1.00 (0.09)
January 1, 2004 to December 31, 2004 ............ $14.57 0.22 1.81 (0.22)
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 79
Financial Highlights
Ratio to Average Net Assets
(Annualized)
--------------------------------- Net Assets
Distributions Ending Net at End of
from Net Net Asset Investment Portfolio Period
Realized Value Per Income Gross Net Total Turnover (000's
Gains Share (Loss) Expenses Expenses Return(1) Rate(2) omitted)
- ------------- --------- ---------- -------- --------- --------- --------- ----------
0.00 $19.51 0.78% 0.92% 0.66% 10.90% 6% $ 14,504
0.00 $17.69 1.66% 0.97% 0.66% (18.24)% 47% $ 17,732
0.00 $21.96 1.36% 0.94% 0.66% (12.06)% 45% $ 22,931
0.00 $25.30 0.97% 0.96% 0.66% 24.64% 56% $ 33,839
0.00 $20.51 0.96% 0.95% 0.66% (0.90)% 16% $ 29,025
0.00 $20.91 1.04% 0.77% 0.60% (1.76)% 74% $ 30,157
0.00 $21.41 0.93% 0.76% 0.71% 9.59% 136% $ 36,879
0.00 $19.43 0.02% 1.44% 1.28% 10.59% 6% $238,249
0.00 $17.59 1.05% 1.51% 1.29% (18.78)% 47% $198,492
0.00 $21.87 0.71% 1.49% 1.31% (12.60)% 45% $241,355
0.00 $25.19 0.32% 1.53% 1.31% 23.86% 56% $268,534
0.00 $20.42 0.30% 1.52% 1.31% (1.58)% 16% $222,951
0.00 $20.82 0.33% 1.47% 1.33% (2.16)% 74% $312,828
0.00 $21.33 0.40% 1.40% 1.35% 8.88% 136% $465,228
0.00 $10.88 0.87% 1.42% 1.25% 10.93% 15% $ 233
(1.13) $ 9.84 1.85% 1.52% 1.23% (21.52)% 61% $ 165
0.00 $14.43 1.55% 1.37% 1.25% (2.92)% 71% $ 14
0.00 $11.08 0.16% 2.17% 2.00% 10.54% 15% $ 297
(1.13) $10.03 0.69% 2.23% 1.97% (22.07)% 61% $ 274
0.00 $14.66 0.78% 2.12% 2.00% (3.17)% 71% $ 10
0.00 $10.93 1.26% 1.24% 0.96% 11.06% 15% $ 252
(1.13) $ 9.87 2.56% 1.30% 0.95% (21.20)% 61% $ 185
(1.19) $14.43 2.05% 1.21% 0.96% (7.48)% 71% $ 2,405
(1.18) $17.09 2.16% 1.24% 0.96% 11.45% 18% $ 3,489
(0.78) $16.76 2.01% 1.23% 0.96% 8.37% 8% $ 10,255
(0.65) $16.53 1.47% 1.24% 0.96% 7.15% 26% $ 4,957
0.00 $16.17 1.75% 1.36% 0.95% 14.49% 49% $ 4,351
0.00 $10.92 1.38% 0.97% 0.75% 11.23% 15% $ 9
(1.13) $ 9.86 2.64% 1.06% 0.75% (21.07)% 61% $ 8
0.00 $14.43 2.02% 0.91% 0.75% (2.82)% 71% $ 10
0.00 $11.11 0.80% 1.52% 1.35% 10.87% 15% $111,844
(1.13) $10.05 2.05% 1.63% 1.35% (21.53)% 61% $106,931
(1.19) $14.67 1.71% 1.52% 1.37% (7.84)% 71% $151,546
(1.18) $17.35 1.62% 1.51% 1.37% 11.04% 18% $196,291
(0.78) $16.99 1.57% 1.50% 1.37% 7.93% 8% $191,792
(0.65) $16.74 1.06% 1.52% 1.39% 6.85% 26% $223,800
0.00 $16.38 1.40% 1.40% 1.36% 14.04% 49% $122,747
80 Wells Fargo Advantage Large Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income (Loss) on Investments Income
--------- ------------- -------------- -------------
U.S. VALUE FUND
Class A
August 1, 2009 to January 31, 2010 (Unaudited) ... $ 9.44 0.04(4) 1.02 (0.06)
August 1, 2008 to July 31, 2009 .................. $11.68 0.18(4) (2.23) (0.19)
August 1, 2007 to July 31, 2008 .................. $18.74 0.27(4) (3.12) (0.23)
August 1, 2006 to July 31, 2007 .................. $17.09 0.19(4) 2.19 (0.21)
August 1, 2005 to July 31, 2006 .................. $18.64 0.18(4) 0.71 (0.19)
January 1, 2005 to July 31, 2005(5) .............. $18.55 0.07(4) 0.36 (0.05)
January 1, 2004 to December 31, 2004 ............. $17.65 0.20 2.22 (0.18)
Class B
August 1, 2009 to January 31, 2010 (Unaudited) ... $ 9.39 0.01(4) 1.00 (0.01)
August 1, 2008 to July 31, 2009 .................. $11.61 0.11(4) (2.22) (0.11)
August 1, 2007 to July 31, 2008 .................. $18.65 0.15(4) (3.09) (0.12)
August 1, 2006 to July 31, 2007 .................. $17.02 0.05(4) 2.17 (0.07)
August 1, 2005 to July 31, 2006 .................. $18.57 0.05(4) 0.71 (0.06)
January 1, 2005 to July 31, 2005(5) .............. $18.52 (0.01)(4) 0.36 (0.01)
January 1, 2004 to December 31, 2004 ............. $17.64 0.07 2.21 (0.06)
Class C
August 1, 2009 to January 31, 2010 (Unaudited) ... $ 9.32 0.01(4) 1.00 (0.02)
August 1, 2008 to July 31, 2009 .................. $11.54 0.11(4) (2.21) (0.12)
August 1, 2007 to July 31, 2008 .................. $18.57 0.14(4) (3.06) (0.13)
August 1, 2006 to July 31, 2007 .................. $16.94 0.06(4) 2.16 (0.07)
August 1, 2005 to July 31, 2006 .................. $18.50 0.05(4) 0.70 (0.06)
January 1, 2005 to July 31, 2005(5) .............. $18.44 (0.01)(4) 0.36 (0.00)(3)
January 1, 2004 to December 31, 2004 ............. $17.56 0.06 2.20 (0.04)
Administrator Class
August 1, 2009 to January 31, 2010 (Unaudited) ... $ 9.32 0.06(4) 0.99 (0.07)
August 1, 2008 to July 31, 2009 .................. $11.53 0.20(4) (2.20) (0.21)
August 1, 2007 to July 31, 2008 .................. $18.56 0.28(4) (3.05) (0.28)
August 1, 2006 to July 31, 2007 .................. $16.94 0.25(4) 2.15 (0.26)
August 1, 2005 to July 31, 2006 .................. $18.50 0.24(4) 0.70 (0.25)
January 1, 2005 to July 31, 2005(5) .............. $18.40 0.11(4) 0.35 (0.07)
January 1, 2004 to December 31, 2004 ............. $17.52 0.27 2.21 (0.26)
Investor Class
August 1, 2009 to January 31, 2010 (Unaudited) ... $ 9.58 0.04(4) 1.02 (0.05)
August 1, 2008 to July 31, 2009 .................. $11.85 0.17(4) (2.26) (0.18)
August 1, 2007 to July 31, 2008(9) ............... $18.95 0.25(4) (3.14) (0.23)
August 1, 2006 to July 31, 2007 .................. $17.28 0.18(4) 2.21 (0.20)
August 1, 2005 to July 31, 2006 .................. $18.77 0.15(4) 0.74 (0.13)
January 1, 2005 to July 31, 2005(5) .............. $18.68 0.07(4) 0.36 (0.05)
January 1, 2004 to December 31, 2004 ............. $17.77 0.20 2.24 (0.19)
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Large Cap Stock Funds 81
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(2) (000's omitted)
- -------------- --------- -------------- -------- -------- --------- --------- ---------------
0.00 $10.44 0.86% 1.39% 1.25% 11.20% 43% $ 789
0.00 $ 9.44 1.98% 1.47% 1.24% (17.48)% 64% $ 732
(3.98) $11.68 1.77% 1.54% 1.25% (18.11)% 90% $ 1,356
(0.52) $18.74 1.04% 1.38% 1.25% 14.04% 17% $ 2,893
(2.25) $17.09 1.02% 1.37% 1.25% 5.49% 43% $ 2,741
(0.29) $18.64 0.67% 1.39% 1.30% 2.38% 14% $ 5,250
(1.34) $18.55 1.14% 1.41% 1.35% 14.08% 47% $ 5,264
0.00 $10.39 0.12% 2.14% 2.00% 10.80% 43% $ 959
0.00 $ 9.39 1.23% 2.21% 1.99% (18.09)% 64% $ 1,105
(3.98) $11.61 1.01% 2.28% 2.00% (18.70)% 90% $ 2,180
(0.52) $18.65 0.30% 2.13% 2.00% 13.13% 17% $ 4,035
(2.25) $17.02 0.30% 2.12% 2.00% 4.72% 43% $ 4,439
(0.29) $18.57 (0.10)% 2.16% 2.08% 1.95% 14% $ 6,368
(1.34) $18.52 0.39% 2.15% 2.10% 13.20% 47% $ 6,369
0.00 $10.31 0.11% 2.15% 2.00% 10.81% 43% $ 907
0.00 $ 9.32 1.22% 2.19% 1.99% (18.15)% 64% $ 760
(3.98) $11.54 1.00% 2.27% 2.00% (18.70)% 90% $ 1,134
(0.52) $18.57 0.30% 2.13% 2.00% 13.19% 17% $ 1,827
(2.25) $16.94 0.30% 2.12% 2.00% 4.68% 43% $ 2,118
(0.29) $18.50 (0.12)% 2.18% 2.10% 1.95% 14% $ 3,165
(1.34) $18.44 0.31% 2.23% 2.17% 13.15% 47% $ 4,294
0.00 $10.30 1.14% 1.21% 0.96% 11.29% 43% $110,821
0.00 $ 9.32 2.24% 1.28% 0.95% (17.18)% 64% $101,373
(3.98) $11.53 2.01% 1.37% 0.96% (17.88)% 90% $118,988
(0.52) $18.56 1.38% 1.24% 0.96% 14.31% 17% $136,118
(2.25) $16.94 1.39% 1.23% 0.96% 5.82% 43% $244,103
(0.29) $18.50 1.01% 1.17% 0.96% 2.56% 14% $204,133
(1.34) $18.40 1.54% 1.06% 0.95% 14.53% 47% $ 91,940
0.00 $10.59 0.79% 1.49% 1.32% 11.10% 43% $ 22,577
0.00 $ 9.58 1.89% 1.57% 1.31% (17.53)% 64% $ 20,995
(3.98) $11.85 1.67% 1.68% 1.32% (18.17)% 90% $ 27,250
(0.52) $18.95 0.98% 1.55% 1.32% 13.92% 17% $ 41,507
(2.25) $17.28 0.82% 1.55% 1.32% 5.43% 43% $ 40,530
(0.29) $18.77 0.64% 1.48% 1.34% 2.41% 14% $157,495
(1.34) $18.68 1.16% 1.37% 1.32% 14.11% 47% $252,256
82 Wells Fargo Advantage Large Cap Stock Funds
Notes to Financial Statements (Unaudited)
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 Capital Growth Fund ("Capital Growth Fund"), Wells Fargo
Advantage Endeavor Select Fund ("Endeavor Select Fund"), Wells Fargo Advantage
Growth Fund ("Growth Fund" ), Wells Fargo Advantage Large Cap Growth Fund
("Large Cap Growth Fund" ), Wells Fargo Advantage Large Company Core Fund
("Large Company Core Fund"), Wells Fargo Advantage Large Company Value Fund
("Large Company Value Fund"), and Wells Fargo Advantage U.S. Value Fund ("U.S.
Value Fund") (each, a "Fund", collectively, the "Funds"). Each Fund, except for
Endeavor Select Fund, is a diversified series of the Trust, a Delaware statutory
trust organized on November 8, 1999. Endeavor Select Fund is a non-diversified
series of the Trust.
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 the date the financial statements
are issued. Adjustments or additional disclosures, if any, have been included in
these financial statements.
SECURITIES VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. ("NASDAQ") are valued at the NASDAQ Official Closing
Price ("NOCP"), and if no NOCP is available, then at the last reported sales
price. If no sales price is shown on the NASDAQ, the bid price will be used. In
the absence of any sale of securities listed on the NASDAQ, and in the case of
other securities, including U.S. Government obligations, but excluding debt
securities maturing in 60 days or less, the price will be deemed "stale" and the
valuations will be determined in accordance with the Funds' Fair Valuation
Procedures.
Securities denominated in foreign currencies are translated into U.S. dollars
using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the close
of the New York Stock Exchange and therefore may not fully reflect trading or
events that occur after the close of the principal exchange in which the foreign
investments are traded but before the close of the New York Stock Exchange. If
such trading or events are expected to materially affect the value of the
investments, then those investments are fair valued following procedures
approved by the Board of Trustees. These procedures take into account multiple
factors including movements in U.S. securities markets after foreign exchanges
close. Depending on market activity, such fair valuations may be frequent. In
light of the judgment involved in fair value decisions, there can be no
assurance that a fair value assigned to a particular security is accurate. Such
fair value pricing may result in NAVs that are higher or lower than NAVs based
on the closing price or latest quoted bid price.
Debt securities of sufficient credit quality with original maturities of 60 days
or less, and any collateral received from securities lending invested in
securities, 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.
Wells Fargo Advantage Large Cap Stock Funds 83
Notes to Financial Statements (Unaudited)
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Assets,
including investment securities, and liabilities denominated in foreign currency
are translated into U.S. dollars at the prevailing rates of exchange at the date
of valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting in changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the changes
in net assets resulting from changes in market prices of securities at fiscal
period-end are not separately presented. Such changes are recorded with net
realized and unrealized gain from investments. Gains and loses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements and may participate in pooled
repurchase agreement transactions with other funds advised by Wells Fargo Funds
Management, LLC. The repurchase agreements must be fully collateralized based on
values that are marked to market daily. The collateral may be held by an agent
bank under a tri-party agreement. It is the custodian's responsibility to value
collateral daily and to take action to obtain additional collateral as necessary
to maintain market value equal to or greater than the resale price. The
repurchase agreements are collateralized by instruments such as U.S. Treasury,
federal agency, or high-grade corporate obligations. There could be potential
loss to a Fund in the event that such Fund is delayed or prevented from
exercising its rights to dispose of the collateral, including the risk of a
possible decline in the value of the underlying obligations during the period in
which a Fund seeks to assert its rights.
SECURITY LOANS
The Funds may loan securities in return for securities, irrevocable letters of
credit or cash collateral, which is invested in various short-term fixed income
securities. A Fund may receive compensation for lending securities in the form
of fees payable by the borrower or by retaining a portion of interest on the
investment securities purchased with cash received as collateral (after payment
of a "broker rebate fee" to the borrower). A Fund also continues to receive
interest or dividends on the securities loaned. Security loans are secured at
all times by collateral, although the loans may not be fully supported at all
times if, for example, the instruments in which cash collateral is invested
decline in value or the borrower fails to provide additional collateral when
required in a timely manner or at all. The collateral is equal to at least 102%
of the market value of the securities loaned plus accrued interest when the
transaction is entered into. Cash collateral received by a Fund pursuant to
these loans generally is invested on behalf of the Fund by the securities
lending agent in securities that, at the time of investment, are considered
high-quality short-term debt investments (including money market instruments)
and have been evaluated and approved by the Fund's adviser and are permissible
investments for the Fund. Cash collateral is invested on behalf of a Fund
through a joint account in a manner similar to the Fund's investment of its cash
reserves and the Fund is entitled to the gains and bears the losses on such
investments. The net asset value of a Fund will be affected by an increase or
decrease in the value of the securities loaned and by an increase or decrease in
the value of instruments purchased with cash collateral. Another risk from
securities lending is that the borrower may not provide additional collateral
when required or return the securities when due or when called for by the Fund.
In either case, a Fund could experience delays in recovering securities or
collateral or could lose all or part of the value of the loaned securities.
Wells Fargo Bank, N.A., currently acts as the securities lending agent for the
Funds, subject to the overall supervision of the Funds' investment adviser, and
has delegated its duties as securities lending agent to an affiliated sub-agent
for certain funds and to an unaffiliated sub-agent for other funds. Pursuant to
an exemptive order granted by the SEC and subject to compliance with its
conditions, Wells Fargo Bank, N.A. under a contract is entitled to receive for
its services 25% of the revenues earned on the securities lending activities and
incurs all expenses. Wells Fargo Bank, N.A. pays all or part of its portion of
the revenues generated by securities lending activities to the sub-agents as
compensation for their services as sub-agents. The securities lending agent may
make payments to borrowers and placing brokers that are not affiliated,
84 Wells Fargo Advantage Large Cap Stock Funds
Notes to Financial Statements (Unaudited)
directly or indirectly, with the Trust, the adviser or the distributor. For the
six months ended January 31, 2010, Wells Fargo Bank, N.A. waived its share of
revenues earned on securities lending activities. Such waivers by Wells Fargo
Bank, N.A. have the impact of increasing securities lending income on the
Statements of Operations. For foreign equity securities, Bank of New York Mellon
serves as the securities lending sub-agent and receives for its services 20% of
the revenues earned on the securities lending activities that it conducts with
respect to foreign equity securities. The value of the securities on loan, the
related collateral and the liability to return the collateral at January 31,
2010, are shown on the Statements of Assets and Liabilities.
STRUCTURED INVESTMENT VEHICLES
The Funds may invest in structured debt securities, such as those issued by
Structured Investment Vehicles ("SIVs"). SIVs invest in a diversified pool of
underlying securities, which may include finance company debt and structured
finance assets, residential mortgage-backed securities, commercial
mortgage-backed securities, collateralized loan obligations, collateralized debt
obligations and other asset backed securities. The ability of a SIV to repay
debt depends primarily on the cash collections received from the SIV's
underlying asset portfolio, which may include certain assets such as subprime
mortgages that are subject to heightened risks of credit quality or market value
deterioration under the continuing adverse conditions in the U.S. credit
markets, and on the ability to obtain short-term funding through the issuance of
new debt. Investments in these securities present increased credit and liquidity
risks as there could be losses to a Fund in the event of credit or market value
deterioration in a SIV's underlying portfolio, mismatches in the timing of the
cash flows of the underlying asset interests and the repayment obligations of
maturing securities issued by a SIV, or a SIV's inability to issue new debt.
As of January 31, 2010, the following Funds owned certain of these types of
structured securities in the amounts shown in the table. These securities were
originally purchased by the Funds' securities lending agent on behalf of the
Funds through a joint account with cash collateral received by the Funds
pursuant to loans of the Funds' securities. Although considered high-quality,
short-term money market instruments when originally purchased by the securities
lending agent through the joint account, the SIVs are now in payment default,
have been restructured following default or are otherwise impaired and are
valued at fair value as shown in the Portfolio of Investments.
Defaulted/Impaired/Restructured SIVs % of
($Value) Net Assets
------------------------------------ ----------
CAPITAL GROWTH FUND $5,304,942 0.38
ENDEAVOR SELECT FUND 7,487,780 0.59
GROWTH FUND 7,147,309 0.48
LARGE CAP GROWTH FUND 1,625,864 0.58
LARGE COMPANY CORE FUND 1,487,359 0.57
LARGE COMPANY VALUE FUND 320,790 0.28
U.S. VALUE FUND 380,820 0.28
In a securities lending transaction, the net asset value of a Fund will be
affected by an increase or decrease in the value of the securities loaned and by
an increase or decrease in the value of instruments in which cash collateral is
invested. Thus, the current net asset value of each Fund reflects the current
valuations assigned to the defaulted or impaired SIVs that were purchased on its
behalf through the investment of cash collateral. Declines in the values of
defaulted or impaired SIVs generate unrealized losses for a Fund, which are
reflected in the Fund's Statement of Assets and Liabilities, equal to the
difference between (i) the value of the investments purchased with cash
collateral received for securities loaned and (ii) the amount that would be
payable if the Fund were to recall the loans at period end.
The amount of securities lending activity undertaken by a Fund fluctuates from
time to time. After the occurrence of a default or impairment of a SIV purchased
in a joint account by the securities lending agent, as the various participating
Funds' lending activity fluctuated, their ratable interest in the joint account,
including their ratable exposure to the defaulted or impaired SIVs would
fluctuate depending on the relative activity of each participating Fund. In
order to eliminate the fluctuation of the various Funds' ratable exposure to the
defaulted or impaired SIVs, the adviser to the Funds recommended to the Board of
Trustees, and the Board of Trustees approved, actions designed to fix the
allocation of percentage ownership in defaulted or impaired SIVs among all funds
participating in securities lending ("side pocketing")
Wells Fargo Advantage Large Cap Stock Funds 85
Notes to Financial Statements (Unaudited)
based on each Fund's percentage ownership of the total cash collateral
investment joint account as of the date the fixed allocation is implemented.
Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each
Fund's ownership of defaulted or impaired SIVs in the joint account based on
each such Fund's percentage ownership of the joint account as of such date.
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.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually, with the exception of Large Company Core Fund and Large Company Value
Fund, for which net investment income, if any, is declared and distributed
quarterly. Distributions to shareholders from net realized capital gains, if
any, are declared and distributed at least annually.
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 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 July 31, 2009, estimated net capital loss carryforwards, which are available
to offset future net realized capital gains, were as follows:
Expiration
--------------------------------------
2010 2011 2017
------------ -------- ------------
CAPITAL GROWTH FUND $ 0 $ 0 $166,654,324
ENDEAVOR SELECT FUND 0 0 103,386,322
GROWTH FUND 31,763,553 0 18,418,316
LARGE CAP GROWTH FUND 203,828,512 0 27,454,769
LARGE COMPANY CORE FUND 4,905,297 441,738 15,122,152
LARGE COMPANY VALUE FUND 604,271 0 11,277,282
U.S. VALUE FUND 0 0 13,623,172
At July 31, 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
------------
CAPITAL GROWTH FUND $354,182,476
ENDEAVOR SELECT FUND 463,658,456
GROWTH FUND 86,550,697
LARGE CAP GROWTH FUND 37,985,922
LARGE COMPANY CORE FUND 49,441,358
LARGE COMPANY VALUE FUND 11,571,981
U.S. VALUE FUND 11,810,477
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
86 Wells Fargo Advantage Large Cap Stock Funds
Notes to Financial Statements (Unaudited)
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 January 31, 2010 in valuing
the Funds' investments in securities:
Significant Other Significant
Quoted Prices Observable Inputs Unobservable Inputs
INVESTMENTS IN SECURITIES* Level 1 Level 2 Level 3 Total
- -------------------------- -------------- ----------------- ------------------- --------------
CAPITAL GROWTH FUND
EQUITY SECURITIES
COMMON STOCKS $1,340,614,686 $ 0 $ 0 $1,340,614,686
CORPORATE DEBT SECURITIES 0 51,842,157 5,304,942 57,147,099
DEBT SECURITIES ISSUED BY STATES IN
THE U.S. AND ITS POLITICAL SUBDIVISIONS 0 11,356,232 0 11,356,232
SHORT TERM INVESTMENTS 39,108,468 4,235,552 0 43,344,020
$1,379,723,154 $ 67,433,941 $5,304,942 $1,452,462,037
ENDEAVOR SELECT FUND
EQUITY SECURITIES
COMMON STOCKS $1,252,187,055 $ 0 $ 0 $1,252,187,055
CORPORATE DEBT SECURITIES 0 109,114,086 7,487,780 116,601,866
DEBT SECURITIES ISSUED BY STATES IN
THE U.S. AND ITS POLITICAL SUBDIVISIONS 0 23,901,885 0 23,901,885
SHORT TERM INVESTMENTS 13,264,579 8,914,722 0 22,179,301
$1,265,451,634 $141,930,693 $7,487,780 $1,414,870,107
GROWTH FUND
EQUITY SECURITIES
COMMON STOCKS $1,487,196,887 $ 0 $ 0 $1,487,196,887
CORPORATE DEBT SECURITIES 0 133,376,872 7,147,309 140,524,181
DEBT SECURITIES ISSUED BY STATES IN
THE U.S. AND ITS POLITICAL SUBDIVISIONS 0 29,216,750 0 29,216,750
SHORT TERM INVESTMENTS 21,876,458 10,897,015 0 32,773,473
$1,509,073,345 $173,490,637 $7,147,309 $1,689,711,291
Wells Fargo Advantage Large Cap Stock Funds 87
Notes to Financial Statements (Unaudited)
Significant Other Significant
Quoted Prices Observable Inputs Unobservable Inputs
INVESTMENTS IN SECURITIES* Level 1 Level 2 Level 3 Total
- -------------------------- -------------- ----------------- ------------------- --------------
LARGE CAP GROWTH
EQUITY SECURITIES
COMMON STOCKS $280,001,938 $ 0 $ 0 $280,001,938
CORPORATE DEBT SECURITIES 0 12,667,847 1,625,864 14,293,711
DEBT SECURITIES ISSUED BY STATES IN
THE U.S. AND ITS POLITICAL SUBDIVISIONS 0 2,774,945 0 2,774,945
SHORT TERM INVESTMENTS 1,652,627 1,034,975 0 2,687,602
$281,654,565 $ 16,477,767 $1,625,864 $299,758,196
LARGE COMPANY CORE FUND
EQUITY SECURITIES
COMMON STOCKS $261,253,629 $ 0 $ 0 $261,253,629
CORPORATE DEBT SECURITIES 0 1,264,013 1,487,359 2,751,372
DEBT SECURITIES ISSUED BY STATES IN
THE U.S. AND ITS POLITICAL SUBDIVISIONS 0 276,887 0 276,887
SHORT TERM INVESTMENTS 1,655,594 103,271 0 1,758,865
$262,909,223 $ 1,644,171 $1,487,359 $266,040,753
LARGE COMPANY VALUE FUND
EQUITY SECURITIES
COMMON STOCKS $109,601,878 $ 0 $ 0 $109,601,878
CORPORATE DEBT SECURITIES 0 1,970,972 320,790 2,291,762
DEBT SECURITIES ISSUED BY STATES IN
THE U.S. AND ITS POLITICAL SUBDIVISIONS 0 431,748 0 431,748
SHORT TERM INVESTMENTS 4,666,881 161,030 0 4,827,911
$114,268,759 $ 2,563,750 $ 320,790 $117,153,299
U.S. VALUE FUND
EQUITY SECURITIES
COMMON STOCKS $131,909,548 $ 0 $ 0 $131,909,548
CORPORATE DEBT SECURITIES 0 394,340 380,820 775,160
DEBT SECURITIES ISSUED BY STATES IN
THE U.S. AND ITS POLITICAL SUBDIVISIONS 0 86,380 0 86,380
SHORT TERM INVESTMENTS 5,317,298 32,218 0 5,349,516
$137,226,846 $ 512,938 $ 380,820 $138,120,604
Further details on the major security types listed above for each fund can be
found in the Portfolio of Investments.
88 Wells Fargo Advantage Large Cap Stock Funds
Notes to Financial Statements (Unaudited)
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining value:
Capital Growth Fund Endeavor Select Fund Growth Fund Large Cap Growth Fund
------------------- -------------------- ----------- ---------------------
CORPORATE DEBT SECURITIES
Balance as of July 31, 2009 $ 4,706,248 $ 6,642,738 $ 6,340,693 $1,442,375
Realized gain (loss) (3,449,301) (3,065,051) (4,610,920) (467,534)
Change in unrealized gain or losses 4,825,830 5,002,467 6,460,241 888,216
Net purchases (sales) (777,835) (1,092,374) (1,042,705) (237,193)
Net transfer in (out) of Level 3 0 0 0 0
Balance as of January 31, 2010 $ 5,304,942 $ 7,487,780 $ 7,147,309 $1,625,864
Change in unrealized gains or losses included
in earnings relating to securities still held
at January 31, 2010 $ 1,114,642 $ 1,573,287 $ 1,501,750 $ 341,617
Large Company Core Fund Large Company Value Fund U.S. Value Fund
----------------------- ------------------------ ---------------
CORPORATE DEBT SECURITIES
Balance as of July 31, 2009 $1,319,501 $ 284,588 $ 337,842
Realized gain (loss) (346,797) (182,395) (154,795)
Change in unrealized gain or losses 734,042 147,468 253,331
Net purchases (sales) (219,387) 71,129 (55,558)
Net transfer in (out) of Level 3 0 0 0
Balance as of January 31, 2010 $1,487,359 $ 320,790 $ 380,820
Change in unrealized gains or losses included
in earnings relating to securities still held
at January 31, 2010 $ 312,515 $ 67,402 $ 80,016
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.
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)
------------------ -----------------
CAPITAL GROWTH FUND First $500 million 0.700
ENDEAVOR SELECT FUND Next $500 million 0.650
LARGE CAP GROWTH FUND Next $2 billion 0.600
LARGE COMPANY CORE FUND Next $2 billion 0.575
LARGE COMPANY VALUE FUND Over $5 billion 0.550
U. S. VALUE FUND
GROWTH FUND First $500 million 0.750
Next $500 million 0.700
Next $2 billion 0.650
Next $2 billion 0.625
Over $5 billion 0.600
Wells Fargo Advantage Large Cap Stock Funds 89
Notes to Financial Statements (Unaudited)
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
Capital Growth Fund, Endeavor Select Fund, Growth Fund, Large Cap Growth Fund,
and U.S. Value Fund.
Matrix Asset Advisors Incorporated is the sub-adviser to Large Company Core
Fund.
Phocas Financial Corporation is the sub-adviser to Large Company Value Fund.
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 0.28
Administration Class All asset levels 0.10
Institutional Class All asset levels 0.08
Investor Class All asset levels 0.38
Funds Management has contractually waived and reimbursed advisory and
administration fees during the six months ended January 31, 2010 to the extent
necessary to maintain certain net operating expense ratios for the Funds.
Expenses were waived and 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 31, 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 31, 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.
90 Wells Fargo Advantage Large Cap Stock Funds
Notes to Financial Statements (Unaudited)
For the six months ended January 31, 2010, Wells Fargo Funds Distributor, LLC
received the following amounts in front-end sales charges and contingent
deferred sales charges.
Front-end Contingent deferred sales charges
sales charges ---------------------------------
Class A Class B Class C
------------- ------- -------
CAPITAL GROWTH FUND $ 378,957 $ 0 $373
ENDEAVOR SELECT FUND 1,549,669 2,249 747
GROWTH FUND 1,337,243 0 19
LARGE COMPANY VALUE FUND 24,886 0 0
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.
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 January 31, 2010, were as
follows:
Purchases at Cost Sales Proceeds
----------------- --------------
CAPITAL GROWTH FUND $843,371,229 $ 969,760,004
ENDEAVOR SELECT FUND 989,747,593 1,051,549,950
GROWTH FUND 556,183,412 483,066,195
LARGE CAP GROWTH FUND 70,617,242 76,019,961
LARGE COMPANY CORE FUND 26,699,241 14,058,277
LARGE COMPANY VALUE FUND 16,551,288 23,017,800
U.S. VALUE FUND 55,448,568 59,999,395
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 January 31, 2010, there were no borrowings by the Funds
under the agreement.
7. 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.
Wells Fargo Advantage Large Cap Stock Funds 91
Notes to Financial Statements (Unaudited)
8. LEGAL AND REGULATORY MATTERS
In 2004, the predecessor Strong Funds' investment adviser and affiliates
(collectively, "Strong") entered into settlement agreements with certain
regulators, including the SEC and the New York Attorney General ("NYAG") to
settlement market-timing investigations. In the settlements, Strong agreed to
pay investor restitution and civil penalties. On September 14, 2009, the SEC
approved the terms of the Distribution Plan for the disgorgement and civil
penalties to the predecessor Strong Fund shareholders, and those eligible
investors will receive proceeds as a result of the Distribution Plan. The
successor funds are not expected to receive any portion of the proceeds. The
settlement with the NYAG imposed fee reductions across the predecessor Strong
Fund complex, and Funds Management agreed to honor these fee reductions for the
benefit of shareholders across the successor funds to total $35 million by May
2009. Although civil litigation against Strong and certain predecessor Strong
Funds relating to these matters is continuing, neither the current adviser nor
the successor funds is a party to any such suit.
9. NEW ACCOUNTING PRONOUNCEMENT
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.
10. REORGANIZATIONS
At a meeting of the Board of Trustees held on January 11, 2010, the Trustees
approved a Plan of Reorganization (the "Plan") for each of the specified funds
("Target Funds") listed in the table below. Under each Plan, certain existing
Wells Fargo Advantage Funds ("Acquiring Funds") will acquire the assets and
assume the liabilities of the Target Fund in exchange for shares of Acquiring
Fund.
TARGET FUND Target Fund Trust Acquiring Fund Acquiring Fund Trust
- ----------- ----------------------- ---------------------- -----------------------
Wells Fargo Advantage Wells Fargo Advantage
Large Company Core Fund Wells Fargo Funds Trust Large Cap Core Fund Wells Fargo Funds Trust
Wells Fargo Advantage Wells Fargo Advantage
U.S. Value Fund Wells Fargo Funds Trust Disciplined Value Fund Wells Fargo Funds Trust
A special meeting of shareholders of each Fund will be held in June 2010 to
consider and vote on the Plan. In April 2010, materials for this meeting will be
mailed to shareholders of record on March 10, 2010.
92 Wells Fargo Advantage Large Cap Stock Funds
Other Information (Unaudited)
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities 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, President Deluxe Corporation
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 Chief None
60 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 Graduate None
59 Trustee, since 2008 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 Large Cap Stock Funds 93
Other Information (Unaudited)
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 School, None
56 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
39 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 Company, None
34 since 2009 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 Chief Compliance Officer of Wells Fargo Funds Management, LLC None
45 Officer, since 2007 since 2007. Chief Compliance Officer of Parnassus Investments
from 2005 to 2007. Chief Financial Officer of Parnassus
Investments from 2004 to 2007 and Senior Audit Manager of
PricewaterhouseCoopers LLP from 1998 to 2004.
(1.) The Statement of Additional Information includes additional information
about the Funds' Trustees and is available, without charge, upon request,
by calling 1-800-222-8222 or by visiting the Funds' Web site at
www.wellsfargo.com/advantagefunds.
(2.) Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
(3.) Effective November 1, 2009.
(4.) Treasurer during the period from June 1, 2009 to October 31, 2009.
Assistant Treasurer effective November 1, 2009.
94 Wells Fargo Advantage Large Cap Stock Funds
List of Abbreviations
The following is a list of common abbvreviations 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
(GRAPHIC) Reduce Clutter. Save trees.
Sign up for electronic delivery of prospectuses and shareholder reports at
www.wellsfargo.com/advantagedelivery
WELLS ADVANTAGE
FARGO 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
(LOGO)
Printed on Recycled paper
(C) 2010 Wells Fargo
Funds Management,
LLC. All rights
reserved. www.wellsfargo.com/advantagefunds 120885 03-10
SLCFLD/SAR120 01-10
(WELLS FARGO ADVANTAGE FUNDS LOGO)
(REDUCE CLUTTER. SAVE TREES. LOGO)
Sign up for electronic delivery of prospectuses and shareholder
reports at www.wellsfargo.com/advantagedelivery
(GRAPHIC)
Semi-Annual Report
January 31, 2010
WELLS FARGO ADVANTAGE SOCIAL SUSTAINABILITY FUND(SM)
REDUCE CLUTTER. SAVE TREES.
Sign up for electronic delivery of prospectuses and shareholder reports at
www.wellsfargo.com/advantagedelivery
Contents
LETTER TO SHAREHOLDERS .................................................... 2
PERFORMANCE HIGHLIGHTS .................................................... 6
FUND EXPENSES ............................................................. 8
PORTFOLIO OF INVESTMENTS .................................................. 9
FINANCIAL STATEMENTS
Statement of Assets and Liabilities ....................................... 12
Statement of Operations ................................................... 13
Statements of Changes in Net Assets ....................................... 14
Financial Highlights ...................................................... 16
NOTES TO FINANCIAL STATEMENTS ............................................. 18
OTHER INFORMATION ......................................................... 22
LIST OF ABBREVIATIONS ..................................................... 27
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(GRAPHIC)
WELLS FARGO INVESTMENT HISTORY
1971 INTRODUCED ONE OF THE FIRST INSTITUTIONAL INDEX FUNDS.
1978 ONE OF THE FIRST FIRMS TO APPLY ASSET ALLOCATION THEORY TO INVESTMENT
PORTFOLIO MANAGEMENT.
1985 ONE OF THE FIRST FIRMS TO CREATE A THREE-WAY ASSET ALLOCATION FUND THAT
"TILTS" INVESTMENTS TOWARD PORTIONS OF THE MARKET THAT OUR PROPRIETARY
MODELS INDICATE WILL PERFORM BETTER.
1994 INTRODUCED TARGET DATE FUNDS THAT AUTOMATICALLY REALLOCATE THE ASSET MIX
OVER SPECIFIC TIME HORIZONS.
1997 WELLS FARGO LAUNCHED THE WEALTHBUILDER PORTFOLIOS, A UNIQUE "FUND OF
FUNDS" THAT USES FLEXIBLE ASSET ALLOCATION STRATEGIES TO SHIFT ASSETS.
1999 REORGANIZED THE NORWEST ADVANTAGE FUNDS(R) AND STAGECOACH FUNDS(R) INTO
THE WELLS FARGO FUNDS(R).
2003 EXPANDED FIXED-INCOME, SMALL CAP, AND EMERGING MARKETS LINEUP FROM
MONTGOMERY ASSET MANAGEMENT, LLC.
2004 ADDED ADDITIONAL LARGE CAP AND MID CAP FUNDS TO THE LINEUP BY ADOPTING
THE COOKE & BIELER VALUE FUNDS.
2005 WELLS FARGO FUNDS MERGED WITH STRONG FUNDS TO BECOME WELLS FARGO
ADVANTAGE FUNDS, FORMING A FUND FAMILY OF OVER 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 ADVANTAGE FUNDS, Wells Fargo Managed Account Services, and 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 JANUARY 31, 2010.
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 International 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 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
Conservative Allocation Fund
Growth Balanced Fund
Index Asset Allocation 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 Money Market Fund
California Municipal Money 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.
(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
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 Social Sustainability Fund
Letter to Shareholders
(PHOTO OF KARLA M. RABUSCH)
KARLA M. RABUSCH,
President
WELLS FARGO ADVANTAGE FUNDS
POSITIVE ECONOMIC GROWTH RESUMED IN THE THIRD QUARTER OF 2009 AND CONTINUED
DURING THE FOURTH QUARTER.
Dear Valued Shareholder,
We are pleased to provide you with this semiannual report for the Wells Fargo
Advantage Social Sustainability Fund for the six-month period that ended January
31, 2010. The period brought welcome signs of economic improvement, supporting a
strong rally in the financial markets after a streak of six consecutive
quarterly declines. We believe that this significant recovery, after an extended
period of weakness, underscores the importance of maintaining a disciplined,
long-term investment strategy. Although periods of volatility can be challenging
for investors, staying focused on a long-term strategy based on individual goals
and risk tolerance can help avoid missing potential periods of strong recovery.
ECONOMIC GROWTH TURNED POSITIVE AFTER A SEVERE CONTRACTION.
Positive economic growth resumed in the third quarter of 2009 and continued
during the fourth quarter, following four consecutive quarters of negative
economic growth for the first time in at least 60 years. Gross domestic product
(GDP) growth was 2.2% for the third quarter and 5.7% for the fourth quarter, the
strongest since 2003. The consensus among economists was that the recession that
began in December 2007 had likely ended during the summer of 2009. However, with
much of the growth attributable to government stimulus, questions remained over
the sustainability of the recovery. By the end of the six-month period, the
National Bureau of Economic Research had not declared an official end to the
recession.
UNEMPLOYMENT REMAINED HIGH, BUT OTHER ECONOMIC INDICATORS IMPROVED.
The unemployment rate rose but appeared to plateau during the six-month period.
Unemployment climbed to 10.1% in October 2009--its highest level in more than 25
years--before edging down to close the period at 9.7%. The pace of job losses
had slowed as the period came to a close. The Labor Department reported that
20,000 jobs were lost in January 2010, a significant improvement from the
monthly job losses of approximately 700,000 at the height of the recession.
Other encouraging news in January included increases in temporary jobs, average
hours worked, hourly earnings, and manufacturing employment. Still, since the
start of the recession, more than 8 million jobs had been lost by the end of the
six-month period.
Other economic statistics also began to show signs of improvement. Industrial
production, manufacturing, and consumer sentiment had all improved significantly
as the six-month period ended. Retail sales improved in the latter months of the
period, helped in part by the "cash-for-clunkers" program that temporarily
boosted auto sales. Home sales and prices also stabilized and began to show
signs of improvement in many areas of the country, spurred in part by the
government's $8,000 tax credit for first-time home buyers.
THE FED CONTINUED TO FOCUS ON ECONOMIC STIMULUS.
Despite extensive quantitative easing measures by the Federal Reserve, bank
lending did not expand during the six-month period. This indicates that the
trillions of dollars of government stimulus that were added to the monetary
system might not have an inflationary impact in the near term. During the
period,
Wells Fargo Advantage Social Sustainability Fund 3
Letter to Shareholders
however, debate began to escalate over the need for the Fed to outline an "exit
strategy" from its stimulus programs. Despite that debate, the Federal Open
Market Committee (FOMC) held the federal funds rate at the range of 0% to 0.25%
that it first targeted in December 2008. The Fed concluded its purchases of
longer-term Treasuries in October 2009 but continued to buy mortgage-backed
securities, with that program slated to end in March 2010. In its final
statement during the six-month period, the FOMC noted the signs of economic
improvement but reiterated that it was likely to keep the federal funds rate at
exceptionally low levels for an extended period because of the continued
substantial economic slack.
SIGNS OF ECONOMIC IMPROVEMENT SUPPORTED A CONTINUED MARKET RALLY.
After a significant rally in the spring and early summer of 2009, stocks
continued to advance throughout most of the six-month period before staging a
moderate pullback in the final weeks of January 2010. The markets saw slight
corrections during October 2009 and January 2010 as volatility returned due to
questions about the sustainability of the economic improvement. The broad
market, as represented by the S&P 500 Index, rose more than 26% for all of 2009,
with a gain of nearly 65% from the March 9 low through year-end.
For the six-month period ended January 31, 2010, the S&P 500 Index gained 9.9%,
the Dow Jones Industrial Average rose 9.7%, and the Nasdaq Composite Index
advanced 8.5%. Mid cap stocks led in performance for the six-month period, while
large cap stocks slightly outpaced small caps. The Russell Midcap Index gained
13.6% during the period, the Russell 1000 Index of large cap stocks rose 10.3%,
and the Russell 2000 Index of small cap stocks advanced 8.6%. For the six-month
period, the value investment style outperformed the growth investment style
across all market capitalizations, as measured by the Russell indices.
DON'T LET SHORT-TERM VOLATILITY DERAIL LONG-TERM INVESTMENT GOALS.
The six-month period that ended January 31, 2010, brought a welcome reprieve
from the volatility of 2008 and early 2009. The rebound in market performance
that began in early 2009 underscores the importance of maintaining a focus on
long-term investment goals through periods of volatility so as not to miss
potential periods of strong recovery. Although periods of volatility can present
challenges, experience has 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 represent investments across a broad
range of asset classes and investment styles, giving you an opportunity to
create a diversified investment portfolio. Although 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.
FOR THE SIX-MONTH PERIOD ENDED JANUARY 31, 2010, THE S&P 500 INDEX GAINED 9.9%,
THE DOW JONES INDUSTRIAL AVERAGE ROSE 9.7%, AND THE NASDAQ COMPOSITE INDEX
ADVANCED 8.5%.
4 Wells Fargo Advantage Social Sustainability Fund
Letter to Shareholders
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 Social Sustainability Fund
Performance Highlights
WELLS FARGO ADVANTAGE SOCIAL SUSTAINABILITY FUND
INVESTMENT OBJECTIVE
The WELLS FARGO ADVANTAGE SOCIAL SUSTAINABILITY FUND (the Fund) seeks long-term
capital appreciation by investing in securities which meet the Fund's investment
and social sustainability criteria.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Nelson Capital Management
PORTFOLIO MANAGERS
Scott C. Benner, CFA
Lloyd Kurtz, CFA
Jonathan Manchester, CFA, CFP
Frank Marcoux, CFA
Suanne Ramar, CFA
FUND INCEPTION
September 30, 2008
SECTOR DISTRIBUTION(1)
(AS OF JANUARY 31, 2010)
(PIE CHART)
Information Technology (23%)
Materials (3%)
Telecommunication Services (1%)
Utilities (2%)
Consumer Discretionary (11%)
Consumer Staples (10%)
Energy (12%)
Financials (15%)
Health Care (13%)
Industrials (10%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF JANUARY 31, 2010)
Google Incorporated Class A 3.71%
Microsoft Corporation 3.64%
BP plc ADR 3.47%
Emerson Electric Company 3.39%
Johnson & Johnson 3.20%
Noble Energy Incorporated 3.10%
Hewlett-Packard Company 3.00%
PepsiCo Incorporated 2.81%
PNC Financial Services Group Incorporated 2.77%
Cameron International Corporation 2.69%
- ----------
(1.) Sector distribution is subject to change and is calculated based on the
total common stock investments of the Fund.
(2.) The ten largest portfolio holdings are calculated based on the value of the
securities divided by total investments of the Fund. Holdings are subject
to change and may have changed since the date specified.
Wells Fargo Advantage Social Sustainability Fund 7
Performance Highlights
WELLS FARGO ADVANTAGE SOCIAL SUSTAINABILITY FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF JANUARY 31, 2010)
Including Sales Charge Excluding Sales Charge Expense Ratio
--------------------------------- --------------------------------- -----------------
6 Months* 1 Year Life of Fund 6 Months* 1 Year Life of Fund Gross(3) Net(4)
--------- ------ ------------ --------- ------ ------------ -------- ------
Class A (WSSAX) 3.60 24.71 (5.84) 9.88 32.30 (1.57) 17.37% 1.25%
Class C (WSRCX) 8.44 30.24 (2.36) 9.44 31.24 (2.36) 16.14% 2.00%
Administrator Class (WSRAX) 10.10 32.71 (1.34) 14.16% 1.00%
S&P 500 Index(5) 9.87 33.14 (3.64)
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
- - www.wellsfargo.com/advantagefunds.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
Please keep in mind that high double-digit returns were primarily achieved
during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A Fund's performance, especially for very
short time periods, should not be the sole factor in making your investment
decision.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. The use of derivatives may
reduce returns and/or increase volatility. Because the social screens applied to
the Fund's investments may exclude securities of certain issuers, industries,
and sectors for nonfinancial reasons, the Fund may forgo some market
opportunities available to funds that do not use these screens. Certain
investment strategies tend to increase the total risk of an investment (relative
to the broader market). This Fund is exposed to foreign investment risk and
social investment risk. Consult the Fund's prospectus for additional information
on these and other risks.
- ----------
(3.) Reflects the gross expense ratio as stated in the December 1, 2009
prospectus.
(4.) The investment adviser has contractually committed through November 30,
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.) The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index with
each stock's weight in the Index proportionate to its market value. S&P 500
is a registered trademark of Standard and Poor's. You cannot invest
directly in an Index.
8 Wells Fargo Advantage Social Sustainability Fund
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 August 1, 2009
to January 31, 2010.
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
08-01-2009 01-31-2010 the Period(1) Expense Ratio
------------- ------------- ------------- -------------
CLASS A
Actual $1,000.00 $1,098.80 $ 6.61 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.36 1.25%
CLASS C
Actual $1,000.00 $1,094.40 $10.56 2.00%
Hypothetical (5% return before expenses) $1,000.00 $1,015.12 $10.16 2.00%
ADMINISTRATOR CLASS
Actual $1,000.00 $1,101.00 $ 5.30 1.00%
Hypothetical (5% return before expenses) $1,000.00 $1,020.16 $ 5.09 1.00%
- ----------
(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).
Wells Fargo Advantage Social Sustainability Fund 9
Portfolio of Investments--January 31, 2010 (Unaudited)
SOCIAL SUSTAINABILITY FUND
SHARES SECURITY NAME VALUE
- ------- ---------------------------------------------------------------------------------- ----------
COMMON STOCKS: 98.90%
BUSINESS SERVICES: 2.49%
875 AUTOMATIC DATA PROCESSING INCORPORATED $ 35,691
1,205 MANPOWER INCORPORATED 62,407
98,098
----------
COMMUNICATIONS: 2.52%
6,556 COMCAST CORPORATION CLASS A 99,258
----------
COMPUTER TECHNOLOGIES: 2.33%
2,241 ACCENTURE PLC 91,859
----------
COSMETICS, PERSONAL CARE: 5.84%
2,017 JOHNSON & JOHNSON 126,789
1,678 PROCTER & GAMBLE COMPANY 103,281
230,070
----------
CRUDE PETROLEUM & NATURAL GAS: 3.11%
1,660 NOBLE ENERGY INCORPORATED 122,740
----------
DEPOSITORY INSTITUTIONS: 8.19%
1,789 BANK OF NEW YORK MELLON CORPORATION 52,042
1,956 JPMORGAN CHASE & COMPANY 76,167
1,982 PNC FINANCIAL SERVICES GROUP INCORPORATED 109,862
3,373 US BANCORP 84,595
322,666
----------
ELECTRIC, GAS & SANITARY SERVICES: 2.27%
902 AGL RESOURCES INCORPORATED 31,832
689 CONSOLIDATED EDISON INCORPORATED 30,137
1,131 UGI CORPORATION 27,721
89,690
----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 5.80%
4,187 CISCO SYSTEMS INCORPORATED 94,082
3,239 EMERSON ELECTRIC COMPANY 134,548
228,630
----------
ELECTRONIC COMPUTERS: 3.02%
2,530 HEWLETT-PACKARD COMPANY 119,087
----------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT: 1.98%
1,795 ILLINOIS TOOL WORKS INCORPORATED 78,244
----------
FOOD & KINDRED PRODUCTS: 2.93%
57 GENERAL MILLS INCORPORATED 4,065
1,868 PEPSICO INCORPORATED 111,370
115,435
----------
FOOD STORES: 1.77%
3,148 STARBUCKS CORPORATION 69,868
----------
FOOTWEAR: 1.52%
938 NIKE INCORPORATED CLASS B 59,798
----------
10 Wells Fargo Advantage Social Sustainability Fund
Portfolio of Investments--January 31, 2010 (Unaudited)
SOCIAL SUSTAINABILITY FUND
SHARES SECURITY NAME VALUE
- ------- ---------------------------------------------------------------------------------- ----------
GENERAL MERCHANDISE STORES: 3.62%
1,270 TARGET CORPORATION $ 65,113
2,038 TJX COMPANIES INCORPORATED 77,464
142,577
----------
HEALTH SERVICES: 2.26%
1,253 LABORATORY CORPORATION OF AMERICA HOLDINGS 89,088
----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 6.93%
1,225 3M COMPANY 98,600
5,567 APPLIED MATERIALS INCORPORATED 67,806
2,832 CAMERON INTERNATIONAL CORPORATION 106,653
273,059
----------
INFORMATION & BUSINESS SERVICES: 3.73%
278 GOOGLE INCORPORATED CLASS A 147,179
----------
INSURANCE CARRIERS: 3.46%
1,685 ACE LIMITED 83,020
1,066 PRUDENTIAL FINANCIAL INCORPORATED 53,289
136,309
----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 2.40%
1,253 BECTON DICKINSON & COMPANY 94,439
----------
MEDICAL PRODUCTS: 2.12%
1,608 STRYKER CORPORATION 83,487
----------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS: 1.04%
414 POTASH CORPORATION OF SASKATCHEWAN 41,131
----------
MISCELLANEOUS RETAIL: 4.61%
1,348 COSTCO WHOLESALE CORPORATION 77,416
3,226 CVS CAREMARK CORPORATION 104,426
181,842
----------
MOTION PICTURES: 1.65%
2,201 WALT DISNEY COMPANY 65,040
----------
OIL & GAS EXTRACTION: 2.53%
1,011 APACHE CORPORATION 99,856
----------
PETROLEUM REFINING & RELATED INDUSTRIES: 3.49%
2,449 BP PLC ADR 137,438
----------
PHARMACEUTICALS: 3.25%
1,772 GLAXOSMITHKLINE PLC ADR 69,126
1,100 NOVARTIS AG ADR 58,883
128,009
----------
PRIMARY METAL INDUSTRIES: 1.65%
1,599 NUCOR CORPORATION 65,239
----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 3.32%
664 FRANKLIN RESOURCES INCORPORATED 65,756
Wells Fargo Advantage Social Sustainability Fund 11
Portfolio of Investments--January 31, 2010 (Unaudited)
SOCIAL SUSTAINABILITY FUND
SHARES SECURITY NAME VALUE
- ------- ---------------------------------------------------------------------------------- ----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (CONTINUED)
438 GOLDMAN SACHS GROUP INCORPORATED $ 65,139
130,895
----------
SOFTWARE: 5.66%
2,438 ADOBE SYSTEMS INCORPORATED+ 78,747
5,122 MICROSOFT CORPORATION 144,338
223,085
----------
TELECOMMUNICATIONS: 3.41%
2,167 QUALCOMM INCORPORATED 84,925
2,300 VODAFONE GROUP PLC ADR 49,356
134,281
----------
TOTAL COMMON STOCKS (COST $3,633,406) 3,898,397
----------
YIELD
-----
SHORT-TERM INVESTMENTS: 1.67%
MUTUAL FUNDS: 1.67%
65,979 WELLS FARGO ADVANTAGE GOVERNMENT MONEY MARKET FUND(u)~++ 0.10% 65,979
----------
TOTAL SHORT-TERM INVESTMENTS (COST $65,979) 65,979
----------
TOTAL INVESTMENTS IN SECURITIES
(COST $3,699,385)* 100.57% 3,964,376
OTHER ASSETS AND LIABILITIES, NET (0.57) (22,495)
------ ----------
TOTAL NET ASSETS 100.00% $3,941,881
------ ----------
- ----------
+ Non-income earning securities.
(u) Rate shown is the 7-day annualized yield at period end.
~ The Fund invests cash balances that it retains for liquidity purposes in an
affiliated money market fund.
++ Short-term security of an affiliate of the Fund with a cost of $65,979.
* Cost for federal income tax purposes is $3,704,044 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $284,211
Gross unrealized depreciation (23,879)
--------
Net unrealized appreciation $260,332
The accompanying notes are an integral part of these financial statements.
12 Wells Fargo Advantage Social Sustainability Fund
Statement of Assets and Liabilities--January 31, 2010 (Unaudited)
ASSETS
Investments
In unaffiliated securities, at value ................................ $3,898,397
In affiliated securities, at value .................................. 65,979
----------
Total investments at value (see cost below) ............................ 3,964,376
----------
Receivable for Fund shares issued ...................................... 9,600
Receivable for investments sold ........................................ 50,616
Receivables for dividends .............................................. 2,647
Receivable from investment advisor and affiliates ...................... 9,407
Prepaid expenses and other assets ...................................... 103
----------
Total assets .............................................................. 4,036,749
----------
LIABILITIES
Payable for Fund shares redeemed ....................................... 25,000
Payable for investments purchased ...................................... 69,868
----------
Total liabilities ......................................................... 94,868
----------
TOTAL NET ASSETS .......................................................... $3,941,881
==========
NET ASSETS CONSIST OF
Paid-in capital ........................................................ $3,725,517
Undistributed net investment income .................................... 81
Accumulated net realized loss on investments ........................... (48,708)
Net unrealized appreciation of investments ............................. 264,991
----------
TOTAL NET ASSETS .......................................................... $3,941,881
==========
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE (1)
Net assets - Class A ................................................... $ 706,390
Shares outstanding - Class A ........................................... 72,174
Net asset value per share - Class A .................................... $ 9.79
Maximum offering price per share - Class A(2) .......................... $ 10.39
Net assets - Class C ................................................... $ 161,613
Shares outstanding - Class C ........................................... 16,776
Net asset value and offering price per share - Class C ................. $ 9.63
Net assets - Administrator Class ....................................... $3,073,878
Shares outstanding - Administrator Class ............................... 315,992
Net asset value and offering price per share - Administrator Class ..... $ 9.73
----------
Investments at cost ....................................................... $3,699,385
----------
- ----------
(1.) The Fund has an unlimited number of authorized shares.
(2.) Maximum offering price is computed as 100/94.25 of net asset value. On
investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Social Sustainability Fund 13
Statement of Operations--For the Six Months Ended January 31, 2010 (Unaudited)
INVESTMENT INCOME
Dividends(1) ...................................................... $ 27,133
--------
Total investment income .............................................. 27,133
--------
EXPENSES
Advisory fees ..................................................... 10,223
Administration fees
Fund level ..................................................... 730
Class A ........................................................ 621
Class C ........................................................ 217
Administrator Class ............................................ 1,161
Custody fees ...................................................... 763
Shareholder servicing fees
Class A ........................................................ 554
Class C ........................................................ 194
Administrator Class ............................................ 2,903
Accounting fees ................................................... 4,118
Distribution fees
Class C ........................................................ 582
Professional fees ................................................. 20,001
Registration fees ................................................. 28,920
Shareholder reports ............................................... 11,468
Trustees' fees .................................................... 5,274
Other fees and expenses ........................................... 722
--------
Total expenses ....................................................... 88,451
--------
LESS
Fees waived and/or expenses reimbursed ............................ (72,499)
Net expenses ...................................................... 15,952
--------
Net investment income ................................................ 11,181
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN FROM
Unaffiliated securities ........................................... 18,344
--------
Net realized gain from investments ................................... 18,344
--------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Unaffiliated securities ........................................... 148,536
--------
Net change in unrealized appreciation (depreciation) of investments .. 148,536
--------
Net realized and unrealized gain (loss) on investments ............... 166,880
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................. $178,061
========
(1) Net of foreign withholding taxes of .............................. $ 16
The accompanying notes are an integral part of these financial statements.
14 Wells Fargo Advantage Social Sustainability Fund
Statements of Changes in Net Assets
For the For the
Six Months Ended Year Ended
January 31, 2010 July 31,
(Unaudited) 2009*
---------------- ----------
INCREASE IN NET ASSETS
Beginning net assets ............................................................. $2,137,500 $ 0
OPERATIONS
Net investment income ............................................................ 11,181 14,264
Net realized gain (loss) on investments .......................................... 18,344 (67,052)
Net change in unrealized appreciation (depreciation) of investments .............. 148,536 116,455
---------- ----------
Net increase in net assets resulting from operations ................................ 178,061 63,667
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
NET INVESTMENT INCOME
Class C .......................................................................... (942) 0
Administrator Class .............................................................. (24,422) 0
---------- ----------
Total distributions to shareholders ................................................. (25,364) 0
---------- ----------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A .............................................. 447,389 252,219
Cost of shares redeemed - Class A ................................................ (22,326) (1,954)
---------- ----------
Net increase in net assets resulting from capital share transactions - Class A ... 425,063 250,265
---------- ----------
Proceeds from shares sold - Class C .............................................. 22,615 115,946
Reinvestment of distributions - Class C .......................................... 942 0
Cost of shares redeemed - Class C ................................................ (5,500) 0
---------- ----------
Net increase in net assets resulting from capital share transactions - Class C ... 18,057 115,946
---------- ----------
Proceeds from shares sold - Administrator Class .................................. 1,297,612 1,780,641
Reinvestment of distributions - Administrator Class .............................. 9,306 0
Cost of shares redeemed - Administrator Class .................................... (98,354) (73,019)
---------- ----------
Net increase in net assets resulting from capital share transactions -
Administrator Class ........................................................... 1,208,564 1,707,622
---------- ----------
Net increase in net assets resulting from capital share transactions - Total ........ 1,651,684 2,073,833
---------- ----------
NET INCREASE IN NET ASSETS .......................................................... 1,804,381 2,137,500
---------- ----------
ENDING NET ASSETS ................................................................... $3,941,881 $2,137,500
---------- ----------
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME ............................... $ 81 $ 14,264
---------- ----------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ............................................................ 44,671 30,080
Shares redeemed - Class A ........................................................ (2,336) (241)
---------- ----------
Net increase in shares outstanding - Class A ..................................... 42,335 29,839
---------- ----------
Shares sold - Class C ............................................................ 2,369 14,870
Shares issued in reinvestment of distributions - Class C ......................... 95 0
Shares redeemed - Class C ........................................................ (558) 0
---------- ----------
Net increase in shares outstanding - Class C ..................................... 1,906 14,870
---------- ----------
Shares sold - Administrator Class ................................................ 130,081 203,385
Shares issued in reinvestment of distributions - Administrator Class ............. 934 0
Shares redeemed - Administrator Class ............................................ (10,008) (8,400)
---------- ----------
Net increase in shares outstanding - Administrator Class ......................... 121,007 194,985
---------- ----------
NET INCREASE IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ........ $ 165,248 $ 239,694
---------- ----------
* For the period from the inception of the Fund on September 30, 2008 through
July 31, 2009.
The accompanying notes are an integral part of these financial statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
16 Wells Fargo Advantage Social Sustainability Fund
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income on Investments Income
--------- ---------- -------------- -------------
Class A
August 01, 2009 to January 31, 2010(Unaudited) ....... $ 8.91 0.00 0.88 0.00
September 30, 2008(1) to July 31, 2009 ............... $10.00 0.02 (1.11) 0.00
Class C
August 01, 2009 to January 31, 2010(Unaudited) ....... $ 8.85 0.00 0.84 (0.06)
September 30, 2008(1) to July 31, 2009 ............... $10.00 0.01 (1.16) 0.00
Administrator Class
August 01, 2009 to January 31, 2010(Unaudited) ....... $ 8.92 0.02 0.88 (0.09)
September 30, 2008(1) to July 31, 2009 ............... $10.00 0.07 (1.15) 0.00
- ----------
(1.) Commencement class of operations.
(2.) Total return calculations do not include any sales charges. Returns for
periods of less than one year are not annualized.
(3.) Portfolio turnover rates presented for periods of less than one year are
not annualized.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Social Sustainability Fund 17
Financial Highlights
Ratio to Average Net Assets
Ending (Annualized)
Net Asset ------------------------------------ Portfolio Net Assets at
Value Per Net Investment Gross Net Total Turnover End of Period
Share Income Expenses Expenses Return(2) Rate(3) (000's omitted)
- --------- -------------- -------- -------- --------- --------- ---------------
$9.79 0.52% 6.05% 1.25% 9.88% 9% $ 706
$8.91 0.95% 17.43% 1.25% (10.90)% 12% $ 266
$9.63 (0.08)% 7.00% 2.00% 9.44% 9% $ 162
$8.85 0.41% 16.14% 2.00% (11.50)% 12% $ 132
$9.73 0.87% 6.00% 1.00% 10.10% 9% $3,074
$8.92 1.43% 14.12% 1.00% (10.80)% 12% $1,740
18 Wells Fargo Advantage Social Sustainability Fund
Notes to Financial Statements (Unaudited)
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 Wells Fargo Advantage
Social Sustainability Fund (the "Fund). The 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 the 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 Fund
should recognize or make disclosures regarding events or transactions occurring
subsequent to the balance sheet date through the date the financial statements
are issued. Adjustments or additional disclosures, if any, have been included in
these financial statements.
SECURITIES VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. ("NASDAQ") are valued at the NASDAQ Official Closing
Price ("NOCP"), and if no NOCP is available, then at the last reported sales
price. If no sales price is shown on the NASDAQ, the bid price will be used. In
the absence of any sale of securities listed on the NASDAQ, and in the case of
other securities, including U.S. Government obligations, but excluding debt
securities maturing in 60 days or less, the price will be deemed "stale" and the
valuations will be determined in accordance with the Fund's Fair Valuation
Procedures.
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 Fund to measure fair value are consistent
with the market approach, income approach and/or cost approach, where
applicable, for each security type.
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.
Dividend income is recognized on the ex-dividend date. Dividend income from
securities is recorded net of foreign taxes withheld where recovery of such
taxes is not assured.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
FEDERAL AND OTHER TAXES
The Fund is treated as a separate entity for federal income tax purposes. It is
the policy of the Fund to continue to qualify as a regulated investment company
by distributing substantially all of its investment company taxable income and
any net realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required.
Wells Fargo Advantage Social Sustainability Fund 19
Notes to Financial Statements (Unaudited)
The Fund's income and federal excise tax returns and all financial records
supporting those returns for all taxable years since the commencement of
operations are subject to examination by the federal and Delaware revenue
authorities.
As of July 31, 2009, the Fund had estimated net capital loss carryforwards,
which are available to offset future net realized capital gains, in the amount
of $62,393 expiring in 2017.
CLASS ALLOCATIONS
The separate classes of shares offered by the 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 January 31, 2010 in valuing
the Fund's investments in securities:
Significant Other Significant
Quoted Prices Observable Inputs Unobservable Inputs
INVESTMENTS IN SECURITIES Level 1 Level 2 Level 3 Total
- ------------------------- ------------- ----------------- ------------------- ----------
EQUITY SECURITIES
COMMON STOCKS $3,898,397 $0 $0 $3,898,397
SHORT-TERM INVESTMENTS 65,979 0 0 65,979
$3,964,376 $0 $0 $3,964,376
Further details on the major security types listed above for the Fund can be
found in the Portfolio of Investments.
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.
20 Wells Fargo Advantage Social Sustainability Fund
Notes to Financial Statements (Unaudited)
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 $500 million 0.700%
Next $500 million 0.650
Next $2 billion 0.600
Next $2 billion 0.575
Over $5 billion 0.550
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.
Nelson Capital Management, an affiliate of Funds Management and an indirect
wholly owned subsidiary of Wells Fargo & Company, is the sub-adviser to the
Fund.
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 the 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, and Class C All asset levels 0.28
Administrator Class All asset levels 0.10
Funds Management has contractually waived and/or reimbursed advisory and
administration fees during the six months ended January 31, 2010 to the extent
necessary to maintain certain net operating expense ratios for the Fund.
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 Fund has 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 Fund (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 Fund. 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 Fund.
Prior to August 31, 2009, Wells Fargo Bank, N.A. was responsible for providing
custody services to the Fund and was entitled to a monthly fee for custody
services at an annual rate of 0.02% of the average daily net assets of the Fund.
PNC Global Investment Servicing ("PNC") served as fund accountant for the Trust
prior to this date and received an annual asset-based fee and an annual fixed
fee from the 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 C shares of the Fund
pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to the
Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal
underwriter of the Fund, at an annual rate of 0.75% of the average daily net
assets of the class.
Wells Fargo Advantage Social Sustainability Fund 21
Notes to Financial Statements (Unaudited)
For the six months ended January 31, 2010, Wells Fargo Funds Distributor, LLC
received $55,322 from the sale of Class A shares for the Fund.
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class C, and Administrator Class of the Fund are
charged a fee at an annual rate of 0.25% of the average daily net assets of each
respective class.
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 January 31, 2010, were
$1,904,014 and $247,522, respectively.
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 January 31, 2010, there were no borrowings by the Fund
under the agreement.
7. 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 Fund and, therefore,
cannot be estimated.
8. NEW ACCOUNTING PRONOUNCEMENT
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.
22 Wells Fargo Advantage Social Sustainability Fund
Other Information (Unaudited)
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities 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 Other
Name and Age Length of Service(2) Principal Occupations During Past Five Years 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, President Deluxe Corporation
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 Chief None
60 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 Graduate None
59 Trustee, since 2008 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 Social Sustainability Fund 23
Other Information (Unaudited)
Position Held and Other
Name and Age Length of Service(2) Principal Occupations During Past Five Years Directorships
- ------------------ -------------------- ------------------------------------------------------------- ------------------
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, Wharton School, None
56 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 Other
Name and Age Length of Service(2) Principal Occupations During Past Five Years 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 Senior Vice President of Evergreen Investment Management None
39 2009 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 Company, None
34 since 2009 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 Chief Compliance Officer of Wells Fargo Funds Management, None
45 Officer, since 2007 LLC since 2007. Chief Compliance Officer of Parnassus
Investments from 2005 to 2007. Chief Financial Officer of
Parnassus Investments from 2004 to 2007 and Senior Audit
Manager of PricewaterhouseCoopers LLP from 1998 to 2004.
- ----------
(1.) The Statement of Additional Information includes additional information
about the Funds' Trustees and is available, without charge, upon request,
by calling 1-800-222-8222 or by visiting the Funds' Web site at
www.wellsfargo.com/advantagefunds.
(2.) Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
(3.) Effective November 1, 2009.
(4.) Treasurer during the period from June 1, 2009 to October 31, 2009.
Assistant Treasurer effective November 1, 2009.
24 Wells Fargo Advantage Social Sustainability Fund
Other Information (Unaudited)
BOARD CONSIDERATION OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:
WELLS FARGO ADVANTAGE SOCIAL SUSTAINABILITY FUND
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and sub-advisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will approve the terms of any new investment advisory
and sub-advisory agreements. In this regard, the Board reviewed and approved:
(i) an investment advisory agreement with Wells Fargo Funds Management, LLC
("Funds Management") for the Wells Fargo Advantage Social Sustainability Fund
(the "Fund") and (ii) an investment sub-advisory agreement with Nelson Capital
Management ("Nelson Capital") for the Fund. The investment advisory agreement
with Funds Management and the investment sub-advisory agreement with Nelson
Capital are collectively referred to as the "Advisory Agreements."
More specifically, at a meeting held on May 7, 2008, the Board, including the
Independent Trustees, considered the factors and reached the conclusions
described below relating to the selection of Funds Management and Nelson Capital
and approval of the Advisory Agreements. At its November 2007 meeting, the Board
had received and reviewed extensive presentation materials from Nelson Capital
and discussed them with two of the proposed portfolio managers of the Fund. The
Independent Trustees were assisted in their evaluation of the Advisory
Agreements by independent legal counsel, from whom they received separate legal
advice and with whom they met separately from Funds Management.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board received and considered various information regarding the nature,
extent and quality of services that are anticipated to be provided to the Funds
by Funds Management and Nelson Capital under the Advisory Agreements. The Board
further considered its discussion with two of the proposed portfolio managers of
the Fund at its November 2007 meeting and with representatives from Funds
Management at the May 2008, meeting, including, among other things, a discussion
of investment strategies and investment processes for the Fund.
The Board evaluated the ability of Funds Management and Nelson Capital, based on
their respective financial condition, resources, reputation and other
attributes, to attract and retain qualified investment professionals, including
research, advisory and supervisory personnel. With respect to the quality of
services anticipated to be provided by Nelson Capital, the Board considered,
among other things, the background and experience of Nelson Capital's senior
management and the expertise of, and amount of attention expected to be given to
the Fund by, senior investment personnel of Nelson Capital, including the
portfolio managers that are proposed to be primarily responsible for day-to-day
portfolio management services furnished to the Fund.
The Board considered that it had previously approved the compliance programs and
considered the compliance records of Funds Management within the Wells Fargo
fund complex. The Board further considered the compliance program and compliance
record of Nelson Capital. In addition, the Board took into account the
administrative services that are anticipated to be provided to the Fund by Funds
Management and its affiliates. In considering these matters, the Board
considered not only the specific information presented in connection with the
meeting, but also the knowledge gained over the course of interacting over time
with Funds Management about various topics, including Funds Management's
oversight of service providers such as Nelson Capital.
Based on the above factors, together with those referenced below, the Board
concluded that it was generally satisfied with the nature, extent and quality of
the investment advisory services anticipated to be provided to the Funds by
Funds Management and Nelson Capital.
FUND PERFORMANCE AND EXPENSES
The Board did not consider performance results for the Fund because the Fund is
a new fund that has not yet commenced operations. The Board did consider the
overall performance record of Nelson Capital based on composite performance
information presented by Nelson Capital at the November 2007 and the May 2008
meetings, both on an absolute basis and relative to relevant indices.
Wells Fargo Advantage Social Sustainability Fund 25
Other Information (Unaudited)
The Board received and considered information regarding the Fund's contractual
advisory fee and net operating expense ratio and their various components,
including actual management fees, transfer agent, custodian and other
non-management fees, Rule 12b-1 and non-Rule 12b-1 service fees, fee
waivers/caps and/or expense reimbursements. The Board also considered
comparisons of these fees to the respective median fees of a universe of large
capitalization equity funds and to a narrower group of funds that were
determined by Lipper Inc. ("Lipper") to be the most similar to the Fund (the
"Peer Group"). The Board was provided with a description of the criteria used by
Lipper to select the mutual funds in the Peer Group. The Board noted that the
net operating expense ratios of the Fund are anticipated to be lower than the
Fund's Peer Group's median net operating expense ratio.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance record of Nelson Capital and the expense
structure of the Fund supported the approval of the Advisory Agreements for the
Fund.
INVESTMENT ADVISORY AND SUB-ADVISORY FEE RATES
The Board reviewed and considered the contractual investment advisory fee rates
that would be payable by the Fund to Funds Management for investment advisory
services (the "Advisory Agreement Rates"), both on a stand-alone basis and on a
combined basis with the Funds' administration fee rates. The Board took into
account the separate administrative and other services covered by the
administration fee rates. The Board also reviewed and considered the contractual
investment sub-advisory fee rates that would be payable by Funds Management to
Nelson Capital for investment sub-advisory services (the "Sub-Advisory Agreement
Rates"). In addition, the Board reviewed and considered the existing fee
waiver/cap arrangements applicable to the Advisory Agreement Rates and
considered the Advisory Agreement Rates after taking the waivers/caps into
account (the "Net Advisory Rates").
The Board received and considered information comparing the Advisory Agreement
Rates and Net Advisory Rates with those of the other funds in the Fund's Peer
Group. The Board noted that the Advisory Agreement Rates on a combined basis
with the Funds' administration fee rates are higher than the median rates of the
Fund's peer group, but noted that the Net Advisory Rates for the Fund are lower
than the median rates of the Fund's Peer Group. The Board concluded that the
combined investment advisory/administration fee rates for the Fund (before and
after waivers/caps and/or expense reimbursements) are reasonable in relation to
the Fund's Peer Group, and reasonable in relation to the services anticipated to
be provided.
The Board also reviewed and considered the Sub-Advisory Agreement Rates and
concluded that the proposed Sub-Advisory Agreement Rates are fair and equitable,
based on their consideration of the factors described above.
PROFITABILITY
The Board did not specifically consider the profitability of Funds Management
with respect to the Fund, as the Fund had not yet commenced operations. The
Board does annually consider profitability information about Funds Management,
as well as an analysis of the profitability to other Wells Fargo businesses of
providing services to the Wells Fargo Advantage Funds.
The Board did not consider separate profitability information with respect to
Nelson Capital, as its anticipated profitability from its relationship with the
Fund was not a material factor in determining whether to approve the initial
agreement with Nelson Capital for the Fund.
ECONOMIES OF SCALE
The Board did not specifically consider whether there would be economies of
scale with respect to the management of the Fund, but the Board does annually
consider information regarding economies of scale, and did consider whether the
Fund would appropriately benefit from any economies of scale. The Board
concluded that any actual or potential economies of scale are, or will be,
shared reasonably with Fund shareholders/interestholders, most particularly
through Advisory Agreement Rate breakpoints and waivers/caps and/or expense
reimbursements applicable to the Fund.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
The Board also received and considered information about the nature and extent
of services and fee rates offered by Funds Management to other similarly
situated series of the Trust and to other clients. The Board concluded that the
Advisory Agreement Rates and the Net Advisory Rates were within a reasonable
range of the fee rates offered to others by Funds Management, giving effect to
differences in services covered by such fee rates.
26 Wells Fargo Advantage Social Sustainability Fund
Other Information (Unaudited)
OTHER BENEFITS TO FUNDS MANAGEMENT AND NELSON CAPITAL
The Board received and considered information regarding potential "fall-out" or
ancillary benefits anticipated to be received by Funds Management and its
affiliates, including Nelson Capital, as a result of their relationships with
the Fund. Such benefits could include, among others, benefits directly
attributable to the relationships of Funds Management and Nelson Capital with
the Fund, and benefits potentially derived from an increase in Funds
Management's and Nelson Capital's business as a result of their relationships
with the Fund (such as the ability to market to shareholders other financial
products offered by Funds Management, Nelson Capital and their affiliates).
The Board also considered the effectiveness of the policies of the Fund in
achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits would be sought and how any such credits would be
utilized, any benefits that may be realized by using an affiliated broker, the
extent to which efforts would be made to recapture commission costs, and the
controls applicable to brokerage allocation procedures. The Board also reviewed
Funds Management's and Nelson Capital's methods for allocation portfolio
investment opportunities among the Fund and other clients.
OTHER FACTORS AND BROADER REVIEW
After considering the above-described factors and based on its deliberations and
its evaluation of the information described above, the Board concluded that the
initial approval of the Advisory Agreements for the Fund was in the best
interest of the Fund and its shareholders. Accordingly, the Board approved the
Advisory Agreements for the Fund for an initial two-year period.
Wells Fargo Advantage Social Sustainability Fund 27
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.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
(REDUCE CLUTTER. SAVE TREES. LOGO)
Sign up for electronic delivery of prospectuses and shareholder
reports at www.wellsfargo.com/advantagedelivery
(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
(LOGO)
Printed on Recycled paper
(C) 2010 Wells Fargo Funds Management, www.wellsfargo.com/advantagefunds 120886 03-10
LLC. All rights reserved. SSF/SAR131 01-10
ITEM 2. CODE OF ETHICS
=======================
Not required in this filing
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
=========================================
Not required in this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
==============================================
Not required in this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
===============================================
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
===============================
The Schedule of Investments is included as part of the report to shareholders
filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES
===============================================================
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
=============================================================================
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT
INVESTMENT COMPANY AND AFFILIATED PURCHASES
===================================================================
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
============================================================
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) udner the Investment Company Act) that
occurred during the second quarter of the period covered by this report that has
materially affected or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS
=================
(a)(1) Not required in this filing.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Wells Fargo Funds Trust
By: /s/ Karla M. Rabusch
-------------------------
Karla M. Rabusch
President
Date: March 23, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
date indicated.
By: /s/ Karla M. Rabusch
-------------------------
Karla M. Rabusch
President
Date: March 23, 2010
By: /s/ Kasey L. Phillips
-------------------------
Kasey L. Phillips
Treasurer
Date: March 23, 2010