UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo Fund Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-643-9691
Date of fiscal year end: December 31, 2010
Date of reporting period: June 30, 2010
ITEM 1. REPORT TO SHAREHOLDERS
===============================
(WELLS FARGO 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
June 30, 2010
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM)
- - SERIES G
REDUCE CLUTTER. SAVE TREES.
Sign up for electronic delivery of prospectuses and shareholder reports
at www.wellsfargo.com/advantagedelivery
Contents
PERFORMANCE HIGHLIGHTS ................................................. 2
FUND EXPENSES .......................................................... 4
PORTFOLIO OF INVESTMENTS ............................................... 5
FINANCIAL STATEMENTS
Statement of Assets and Liabilities .................................... 7
Statement of Operations ................................................ 8
Statements of Changes in Net Assets .................................... 9
Financial Highlights ................................................... 10
NOTES TO FINANCIAL STATEMENTS .......................................... 12
OTHER INFORMATION ...................................................... 16
LIST OF ABBREVIATIONS .................................................. 22
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
2 Wells Fargo Managed Account CoreBuilder Shares
Performance Highlights
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM)- SERIES G
INVESTMENT OBJECTIVE
The WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM) - SERIES G (the Fund)
seeks total return, consisting of current income and capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Michael J. Bray, CFA
FUND INCEPTION
April 15, 2008
PORTFOLIO ALLOCATION (1)
(AS OF JUNE 30, 2010)
(PIE CHART)
Asset Backed Securities (1%)
Cash Equivalents (41%)
Collateralized Mortgage Securities (7%)
Federal Agencies (51%)
- ----------
(1.) Portfolio allocation is subject to change and is calculated based on the
total investments of the Fund.
Wells Fargo Managed Account CoreBuilder Shares 3
Performance Highlights
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM)- SERIES G (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF JUNE 30, 2010)
LIFE
OF
6 MONTHS* 1 YEAR FUND
--------- ------ ------
Core Builder Shares(SM) - Series G 4.96 9.00 8.21
Barclays Capital U.S. Securitized Index(2) 5.06 9.25 7.22
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE BY CALLING 1-800-368-0627.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. The use of derivatives may reduce returns and/or increase
volatility. Securities issued by U.S. Government agencies or
government-sponsored entities may not be guaranteed by the U.S. Treasury. 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 mortgage- and asset-backed securities risk. Consult the Fund's
prospectus for additional information on these and other risks. The U.S.
Government guarantee applies to certain of the underlying securities and NOT to
shares of the Fund.
CoreBuilder Shares are a series of investment options within the separately
managed accounts advised or subadvised by Wells Fargo Funds Management, LLC. The
shares are fee-waived mutual funds that enable certain separately managed
account investors to achieve greater diversification than smaller managed
accounts might otherwise achieve.
- ----------
(2.) The Barclays Capital U.S. Securitized Index is an unmanaged composite of
asset-backed securities, collateralized mortgage-backed securities
(ERISA-eligible) and fixed rate mortgage-backed securities. You cannot
invest directly in an index.
4 Wells Fargo Managed Account CoreBuilder Shares
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 January 1, 2010
to June 30, 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
ACCOUNT ACCOUNT EXPENSES
VALUE VALUE PAID DURING NET ANNUAL
01-01-2010 06-30-2010 THE PERIOD EXPENSE RATIO
---------- ---------- ----------- -------------
Actual $1,000.00 $1,049.60 $0.00 0.00%
Hypothetical (5% return before expenses) $1,000.00 $1,024.79 $0.00 0.00%
Wells Fargo Managed Account CoreBuilder Shares 5
Portfolio of Investments--June 30, 2010 (Unaudited)
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ----------------------------------------------------------------------- ------------- ------------- ------------
AGENCY SECURITIES: 88.72%
FEDERAL HOME LOAN MORTGAGE CORPORATION: 5.06%
$ 620,000 FHLMC%% 4.50% 03/15/2040 $ 639,957
73,795 FHLMC #A77459 7.50 05/01/2038 82,088
160,727 FHLMC #F60001 4.50 01/01/2024 169,598
891,643
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION: 73.74%
220,000 FNMA%% 4.00 06/25/2040 222,097
1,080,000 FNMA%% 4.50 07/25/2024 1,139,232
1,525,000 FNMA%% 4.50 01/25/2040 1,574,800
2,125,000 FNMA%% 5.00 02/25/2036 2,240,215
506,000 FNMA%% 5.50 03/25/2023 546,559
2,435,000 FNMA%% 5.50 12/25/2037 2,605,450
2,030,000 FNMA%% 6.00 02/25/2037 2,197,792
800,000 FNMA%% 6.50 02/25/2037 874,625
38,290 FNMA #256986 7.00 11/01/2037 42,228
187,279 FNMA #257307 6.00 08/01/2038 203,356
99,476 FNMA #460207 5.60 11/01/2013 101,154
102,487 FNMA #461110 4.62 07/01/2013 108,757
98,834 FNMA #462846 4.15 07/01/2014 105,536
30,095 FNMA #464495 4.68 02/01/2020 32,408
157,567 FNMA #888707 7.50 10/01/2037 177,248
88,268 FNMA #934370 5.50 08/01/2038 94,875
234,991 FNMA #941312 6.50 07/01/2037 257,734
55,627 FNMA #976190 7.50 05/01/2038 61,790
179,766 FNMA #987853 5.50 08/01/2038 193,221
197,439 FNMA #995591 7.00 03/01/2024 214,618
12,993,695
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION: 9.92%
440,000 GNMA%% 4.50 03/20/2040 457,258
825,000 GNMA%% 5.00 08/15/2039 878,754
2,919,865 GNMA SERIES 2002-53 CLASS IO+/-(c) 0.84 04/16/2042 54,655
125,000 GNMA SERIES 2004-10 CLASS C 4.67 07/16/2031 134,562
42,066 GNMA SERIES 2005-90 CLASS A 3.76 09/16/2028 43,331
165,000 GNMA SERIES 2007-75 CLASS B 5.05 10/16/2014 180,283
1,748,843
------------
TOTAL AGENCY SECURITIES (COST $15,514,589) 15,634,181
------------
ASSET BACKED SECURITIES: 2.20%
38,955 CAPITAL AUTO RECEIVABLES ASSET TRUST SERIES 2007-4 CLASS A3B+/- 1.05 12/15/2011 38,993
165,000 CHASE ISSUANCE TRUST SERIES 2009-A3 CLASS A3 2.40 06/17/2013 167,337
90,000 DISCOVER CARD MASTER TRUST SERIES 2008-A3 CLASS A3 5.10 10/15/2013 92,984
70,000 DISCOVER CARD MASTER TRUST SERIES 2008-A4 CLASS A4 5.65 12/15/2015 77,947
9,789 USAA AUTO OWNER TRUST SERIES 2007-2 CLASS A3 4.90 02/15/2012 9,823
TOTAL ASSET BACKED SECURITIES (COST $375,155) 387,084
------------
COLLATERALIZED MORTGAGE OBLIGATIONS: 12.82%
130,000 BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES SERIES 2007-T28 CLASS AAB 5.75 09/11/2042 142,441
100,000 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2004-LB4A CLASS A4 4.58 10/15/2037 101,911
115,270 FHLMC SERIES T-42 CLASS A5 7.50 02/25/2042 131,678
80,247 FHLMC STRUCTURED PASS-THROUGH SECURITIES SERIES T-57 CLASS 2A1+/- 4.45 07/25/2043 80,095
76,808 FHLMC STRUCTURED PASS-THROUGH SECURITIES SERIES T-59 CLASS 2A1+/- 4.29 10/25/2043 76,391
6 Wells Fargo Managed Account CoreBuilder Shares
Portfolio of Investments--June 30, 2010 (Unaudited)
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
- ---------- ----------------------------------------------------------------------- ------------- ------------- -----------
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
$ 58,415 FNMA SERIES 2005-W4 CLASS 3A+/- 4.16% 06/25/2035 $ 61,490
123,827 FNMA WHOLE LOAN SERIES 2004-W11 CLASS 1A3 7.00 05/25/2044 141,100
102,263 FNMA WHOLE LOAN SERIES 2004-W15 CLASS 1A3 7.00 08/25/2044 114,811
40,258 GMAC COMMERCIAL MORTGAGE SECURITIES INCORPORATED SERIES 2002-C2
CLASS A2 5.39 10/15/2038 41,114
241,301 GNMA SERIES 2006-3 CLASS A 4.21 01/16/2028 246,275
90,482 GNMA SERIES 2007-12 CLASS A 3.96 06/16/2031 93,796
42,130 GNMA SERIES 2007-69 CLASS TA 5.00 06/16/2031 43,186
3,919,995 GNMA SERIES 2008-22 CLASS XM IO+/-(c) 1.37 02/16/2050 177,825
135,000 GNMA SERIES 2008-86 CLASS D 5.46 04/16/2040 148,112
100,000 LEHMAN BROTHERS UBS COMMERCIAL MORTGAGE TRUST SERIES 2005-C1 CLASS A3 4.55 02/15/2030 101,895
110,000 LEHMAN BROTHERS-UBS COMMERCIAL MORTGAGE TRUST SERIES 2003-C8 CLASS A3 4.83 11/15/2027 113,871
90,000 LEHMAN BROTHERS-UBS COMMERCIAL MORTGAGE TRUST SERIES 2006-C1 CLASS A4 5.16 02/15/2031 93,622
90,000 MERRILL LYNCH/COUNTRYWIDE COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 2006-4 CLASS A3 5.17 12/12/2049 88,861
40,000 MORGAN STANLEY CAPITAL I SERIES 2004-T15 CLASS A4+/- 5.27 06/13/2041 42,069
200,000 TIAA REAL ESTATE CDO LIMITED SERIES 2007-C4 CLASS A3+/- 6.07 08/15/2039 218,052
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $2,139,961) 2,258,595
------------
SHORT-TERM INVESTMENTS: 71.85%
US TREASURY BILLS: 0.28%
50,000 US TREASURY BILL### 0.12 09/23/2010 49,986
------------
SHARES YIELD
- ---------- -------------
INVESTMENT COMPANIES: 71.57%
12,612,008 WELLS FARGO ADVANTAGE MONEY MARKET TRUST(u)(l)(b) 0.29 12,612,008
------------
TOTAL SHORT-TERM INVESTMENTS (COST $12,661,994) 12,661,994
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $30,691,699)* 175.59% 30,941,854
OTHER ASSETS AND LIABILITIES, NET (75.59) (13,320,678)
------ ------------
TOTAL NET ASSETS 100.00% $ 17,621,176
====== ============
- ----------
%% Securities issued on a when-issued (TBA) basis.
+/- Variable rate investments.
(c) Interest-only securities entitle holders to receive only the interest
payments on the underlying mortgages. The principal amount shown is the
notional amount of the underlying mortgages. Interest rate disclosed
represents the coupon rate.
## Zero coupon security. Rate represents yield to maturity.
# Security pledged as collateral for futures transactions.
(u) Rate shown is the 7-day annualized yield at period end.
(l) Investment in an affiliate.
(b) All or a portion of this security has been segregated for when-issued
and/or delayed delivery securities.
* Cost for federal income tax purposes is $30,691,699 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $301,725
Gross unrealized depreciation (51,570)
--------
Net unrealized appreciation $250,155
The accompanying notes are an integral part of these financial statements.
Wells Fargo Managed Account CoreBuilder Shares 7
Statement of Assets and Liabilities--June 30, 2010 (Unaudited)
ASSETS
Investments
In unafilliated securities, at value ................... $ 18,329,846
In affiliated securities, at value ..................... 12,612,008
------------
Total investments, at value (see cost below) .............. 30,941,854
Variation margin receivable on futures contracts .......... 109
Receivable for investments sold ........................... 10,396,825
Receivables for interest .................................. 50,831
Prepaid expenses and other assets ......................... 4,609
------------
Total assets ................................................. 41,394,228
------------
LIABILITIES
Payable for fund shares redeemed .......................... 10,098
Payable for investments purchased ......................... 23,698,943
Dividends payable ......................................... 64,011
------------
Total liabilities ............................................ 23,773,052
------------
TOTAL NET ASSETS ............................................. $ 17,621,176
============
NET ASSETS CONSIST OF
Paid-in capital ........................................... $ 17,041,569
Overdistributed net investment income ..................... (35,475)
Accumulated net realized gain on investments .............. 356,182
Net unrealized appreciation of investments ................ 258,900
------------
TOTAL NET ASSETS ............................................. $ 17,621,176
============
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
Net assets ................................................ $ 17,621,176
Shares outstanding ........................................ 1,691,868
Net asset value and offering price per share .............. $ 10.42
------------
Investments, at cost ......................................... $ 30,691,699
------------
- ----------
(1.) The Fund has an unlimited number of authorized shares.
The accompanying notes are an integral part of these financial statements.
8 Wells Fargo Managed Account CoreBuilder Shares
Statement of Operations--For the Six Months Ended June 30, 2010 (Unaudited)
INVESTMENT INCOME
Interest ........................................................... $348,210
Income from affiliated securities .................................. 7,268
--------
Total investment income ............................................... 355,478
--------
Net investment income ................................................. 355,478
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN FROM
Unaffiliated securities ............................................ 220,310
Futures transactions ............................................... 17,942
--------
Net realized gain from investments .................................... 238,252
--------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Unaffiliated securities ............................................ 228,708
Futures transactions ............................................... 29,537
--------
Net change in unrealized appreciation (depreciation) of investments ... 258,245
--------
Net realized and unrealized gain on investments ....................... 496,497
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................. $851,975
========
The accompanying notes are an integral part of these financial statements.
Wells Fargo Managed Account CoreBuilder Shares 9
Statements of Changes in Net Assets
For the For the
Six Months Ended Year Ended
June 30, 2010 December 31,
(Unaudited) 2009
---------------- ------------
INCREASE IN NET ASSETS
Beginning net assets ........................................................ $17,043,367 $10,195,866
OPERATIONS
Net investment income ....................................................... 355,478 405,707
Net realized gain on investments ............................................ 238,252 812,213
Net change in unrealized appreciation (depreciation) of investments ......... 258,245 (54,245)
----------- -----------
Net increase in net assets resulting from operations ........................... 851,975 1,163,675
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income ....................................................... (410,455) (762,048)
Net realized gains .......................................................... 0 (412,766)
----------- -----------
Total distributions to shareholders ............................................ (410,455) (1,174,814)
----------- -----------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold ................................................... 723,887 8,745,397
Cost of shares redeemed ..................................................... (587,598) (1,886,757)
----------- -----------
Net increase in net assets resulting from capital share transactions ........... 136,289 6,858,640
----------- -----------
NET INCREASE IN NET ASSETS ..................................................... 577,809 6,847,501
=========== ===========
ENDING NET ASSETS .............................................................. $17,621,176 $17,043,367
=========== ===========
ENDING BALANCE OF UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME ........ $ (35,475) $ 19,502
=========== ===========
SHARES ISSUED AND REDEEMED
Shares sold ................................................................. 70,949 856,514
Shares redeemed ............................................................. (57,265) (182,980)
----------- -----------
NET INCREASE IN SHARES OUTSTANDING RESULTING FROM CAPITAL SHARE TRANSACTIONS ... 13,684 673,534
=========== ===========
The accompanying notes are an integral part of these financial statements.
10 Wells Fargo Managed Account CoreBuilder Shares
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net
Value Per Investment Gain (Loss) Investment
Share Income on Investments Income
--------- ---------- -------------- -------------
January 1, 2010 to June 30, 2010 (Unaudited) ... $10.16 0.25 0.26 (0.25)
January 1, 2009 to December 31, 2009 ........... $10.15 0.31 0.46 (0.51)
April 15, 2008(3) to December 31, 2008 ......... $10.00 0.25 0.28 (0.36)
- ----------
(1.) Returns for periods of less than one year are not annualized.
(2.) Portfolio turnover rates presented for periods of less than one year are
not annualized.
(3.) Commencement of operations.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Managed Account CoreBuilder Shares 11
Financial Highlights
Ratio of
Ending Net Investment
Distributions Net Asset Income to Average Portfolio Net Assets at
from Net Value Per Net Assets Total Turnover End of Period
Realized Gains Share (annualized) Return(1) Rate(2) (000s) omitted
- -------------- --------- ----------------- --------- --------- --------------
0.00 $10.42 0.24% 4.96% 410% $17,621
(0.25) $10.16 2.59% 7.62% 736% $17,043
(0.02) $10.15 3.48% 5.41% 495% $10,196
12 Wells Fargo Managed Account CoreBuilder Shares
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 Managed
Account CoreBuilder Shares - Series G (the "Fund"). The Fund is a diversified
series of the Trust, a Delaware statutory trust organized on March 10, 1999.
The Fund is a special purpose government securities fund that is used in
combination with selected individual securities to effectively model
institutional-level investment strategies. As an investment option within the
separately managed accounts advised or subadvised by Wells Fargo Funds
Management, LLC, the Fund enables certain separately managed account investors
to achieve greater diversification than small managed accounts might otherwise
achieve.
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
Certain fixed income securities with maturities exceeding 60 days are valued by
using a pricing service approved by the Trust's Board of Trustees. This service
uses market prices as quoted by an independent pricing service or by dealers in
these securities when, in the service's judgment, these prices are readily
available and are representative of the securities' fair values. For some
securities, such prices are not readily available. These securities will
generally be fair valued using the methods which include consideration of yields
or prices of securities of comparable quality, coupon rate, maturity and type of
issue, indications as to values from dealers in securities, trading
characteristics and general market conditions.
Debt securities of sufficient credit quality with original maturities of 60 days
or less, generally are valued at amortized cost which approximates fair value.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates fair value.
Investments in open-end mutual funds are valued at net asset value.
Investments which are not valued using any of the methods discussed above, are
valued at their fair value, as determined by procedures established in good
faith and approved by the Board of Trustees.
The valuation techniques used by the Fund to measure fair value are consistent
with the market approach, income approach and/or cost approach, where
applicable, for each security type.
WHEN-ISSUED TRANSACTIONS
The Fund may purchase securities on a forward commitment or 'when-issued' basis.
A Fund records a when-issued transaction on the trade date and will segregate
assets to cover its obligation by confirming the availability of qualifying
assets having a value sufficient to make payment for the securities purchased.
Securities purchased on a when-issued basis are marked-to-market daily and the
Fund begins earning interest on the settlement date. Losses may arise due to
changes in the market value of the underlying securities or if the counterparty
does not perform under the contract.
FUTURES CONTRACTS
The Fund may be subject to interest rate risk in the normal course of pursuing
its investment objectives. The Fund may buy and sell futures contracts in order
to gain exposure to, or protect against changes in, security values and interest
rates. The primary risks associated with the use of futures contracts are the
imperfect correlation between changes in market values of securities held by the
Fund and the prices of futures contracts, and the possibility of an illiquid
market.
Wells Fargo Managed Account CoreBuilder Shares 13
Notes to Financial Statements (Unaudited)
Futures contracts are valued based upon their quoted daily settlement prices.
The aggregate principal amounts of the contracts are not recorded in the
financial statements. Fluctuations in the value of the contracts are recorded in
the Statement of Assets and Liabilities as an asset or liability and in the
Statement of Operations as unrealized gains or losses until the contracts are
closed, at which point they are recorded as net realized gains or losses on
futures contracts. With futures contracts, there is minimal counterparty risk to
the Fund since futures are exchange traded and the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures against
default.
MORTGAGE DOLLAR ROLL TRANSACTIONS
The Fund may engage in mortgage dollar roll transactions with respect to
mortgage-backed securities issued by Government National Mortgage Association
(GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan
Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, a Fund
sells a mortgage-backed security to a financial institution, such as a bank or
broker-dealer and simultaneously agrees to repurchase a substantially similar
security from the institution at a later date at an agreed upon price. The
mortgage-backed securities that are repurchased will bear the same interest rate
as those sold, but generally will be collateralized by different pools of
mortgages with different pre-payment histories. During the roll period, a Fund
foregoes principal and interest paid on the securities. A Fund is compensated by
the difference between the current sales price and the forward price for the
future purchase as well as by the earnings on the cash proceeds of the initial
sale. Mortgage dollar rolls may be renewed without physical delivery of the
securities subject to the contract. The Fund account for the dollar rolls
transactions as purchases and sales.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily based on the effective interest method. To the extent debt
obligations are placed on non-accrual status, any related interest income may be
reduced by writing off interest receivables when the collection of all or a
portion of interest has become doubtful based on consistently applied
procedures. If the issuer subsequently resumes interest payments or when the
collectability of interest is reasonably assured, the debt obligation is removed
from non-accrual status.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared daily and distributed to shareholders
monthly. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
FEDERAL AND OTHER TAXES
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.
The 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.
As of December 31, 2009 the Fund had $12,094 of current year deferred
post-October capital losses, which will be treated as realized for tax purposes
on the first day of the succeeding year.
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. The three-level
hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). The Fund's investments are classified within the
fair value hierarchy
14 Wells Fargo Managed Account CoreBuilder Shares
Notes to Financial Statements (Unaudited)
based on the lowest level of input that is significant to the fair value
measurement. The 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.
As of June 30, 2010, the input used in valuing the Fund's assets, which are
carried at fair value, were as follows:
Significant Other Significant
Quoted Prices Observable Inputs Unobservable Inputs
INVESTMENTS IN SECURITIES (Level 1) (Level 2) (Level 3) Total
- ------------------------- ------------- ----------------- ------------------- -----------
Asset-backed securities $ 0 $ 387,084 $0 $ 387,084
Collateralized mortgage obligations 0 2,258,595 0 2,258,595
Agency securities 0 15,634,181 0 15,634,181
Investment companies 12,612,008 0 0 12,612,008
U.S. Treasury obligations 49,986 0 0 49,986
$12,661,994 $18,279,860 $0 $30,941,854
Further details on the major security types listed above for the Fund can be
found in the Portfolio of Investments.
As of June 30, 2010, the inputs used in valuing the Fund's other financial
instruments, which are carried at fair value, were as follows:
Significant Other Significant
Quoted Prices Observable Inputs Unobservable Inputs
(Level 1) (Level 2) (Level 3) Total
------------- ----------------- ------------------- -----------
Futures contracts $8,745 $0 $0 $8,745
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining fair value:
Agency
Securities
----------
BALANCE AS OF DECEMBER 31, 2009 $ 169,491
Realized (loss) (118)
Change in unrealized appreciation (depreciation) (3,802)
Net purchases (sales) 4,027
Net transfers in and/or out of Level 3 (169,598)
BALANCE AS OF JUNE 30, 2010 $ 0
CHANGE IN UNREALIZED GAINS OR LOSSES INCLUDED IN EARNINGS
RELATING TO SECURITIES STILL HELD AT JUNE 30, 2010 $ 0
4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES
Wells Fargo Funds Management, LLC ("Funds Management") is the investment adviser
to the Fund and is responsible for implementing the investment policies and
guidelines for the Fund and for supervising the sub-adviser, who is responsible
for the day-to-day portfolio management of the Fund. For providing these
services, Funds Management does not received a fee from the Fund but is entitled
to receive fees from the sponsors of wrap-fee programs.
Wells Fargo Managed Account CoreBuilder Shares 15
Notes to Financial Statements (Unaudited)
Wells Capital Management Incorporated, an affiliate of Funds Management and
indirect wholly owned subsidiary of Wells Fargo & Company, is the sub-adviser to
the Fund. The sub-adviser is compensated for its services by Funds Management
from the fees Funds Management receives from sponsors of wrap-fee programs.
Generally, no ordinary operating fees or expenses are charged to the Fund. Funds
Management has contractually committed to absorb and pay all ordinary operating
expenses of the Fund, except portfolio transactions or other investment-related
costs (e.g. commissions), interest, taxes, leverage expenses and other expenses
not incurred in the ordinary course of the Fund's business. This commitment has
an indefinite term.
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 June 30, 2010, were $73,455,491
and $73,910,265, respectively.
6. DERIVATIVE TRANSACTIONS
During the six months ended June 30, 2010, the Fund entered into futures
contracts for speculative purposes.
At June 30, 2010, the Fund had long/short futures contracts outstanding as
follows:
Initial Value at Net Unrealized
Expiration Contract June 30, Appreciation/
Date Contracts Type Amount 2010 (Depreciation)
- -------------- --------- ------------------------- -------- -------- --------------
September 2010 5 Long 10 Year US Treasury Notes $603,275 $612,734 $ 9,459
September 2010 2 Long 5 Year US Treasury Notes 234,097 236,703 2,606
September 2010 4 Short 2 Year US Treasury Notes 871,992 875,312 (3,320)
The Fund had an average contract amount of $1,000,679 in futures contracts
during the six months ended June 30, 2010.
On June 30, 2010, the cumulative appreciation on futures contracts in the amount
of $8,745 is reflected in net unrealized appreciation on investments on the
Statement of Assets and Liabilities for the Fund. The receivable for daily
variation margin on open futures contracts only represents the current day's
variation margin. The realized gains and change in unrealized gains on futures
contracts are reflected in the Statement of Operations.
7. CONCENTRATION OF OWNERSHIP
From time to time, the Fund may have a concentration of one or more its
shareholders that hold a significant percentage of the Fund's shares
outstanding. Investment and/or voting activities of these shareholders with
respect their holdings in Fund shares could have a material impact on the Fund.
At June 30, 2010, there were two shareholders who held 99.72% of the outstanding
shares of the Fund.
SHAREHOLDER % of ownership
- ----------- --------------
Wells Capital Management Incorporated 59.11%
Citigroup Global Markets Incorporated 40.61%
8. INDEMNIFICATION
Under the Trust's organizational documents, the officers and directors are
indemnified against certain liabilities that may arise out of performance of
their duties to the Trust. Additionally, in the normal course of business, the
Trust may enter into contracts with service providers that contain a variety of
indemnification clauses. The Trust's maximum exposure under these arrangements
is dependent on future claims that may be made against the Fund and, therefore,
cannot be estimated.
16 Wells Fargo Managed Account CoreBuilder Shares
Other Information (Unaudited)
PROXY VOTING INFORMATION
A description of the policies and procedures that the Fund uses 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 Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge on the Fund's 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 the Fund, except money market funds, are
publicly available on the Fund's 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
the Fund is publicly available on the Fund's Web site on a monthly, seven-day or
more delayed basis. The 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, the 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 Information(1) of each Fund. Each of the Trustees and
Officers listed below acts in identical capacities for each of the 132 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 None
67 Chairman, since 2005 Crystal Geyser. Water Company.
(Lead Trustee since
2001)
Isaiah Harris, Jr. Advisory Board Retired. Prior thereto, President and CEO of CIGNA Corporation;
57 Trustee, since 2008 BellSouth Advertising and Publishing Corp from Deluxe Corporation
2005 to 2007, President and CEO of BellSouth
Enterprises from 2004 to 2005 and President of
BellSouth Consumer Services from 2000 to 2003.
Currently a member of the Iowa State University
Foundation Board of Governors and a member of
the Advisory Board of Iowa State University
School of Business.
Dr. Leroy Keith, Jr.(3) Trustee, since 2010 Chairman, Bloc Global Services (development and Trustee, Phoenix
71 construction), Trustee, Phoenix Fund Complex Fund Complex
and Director, Diversapack Co. (packaging (consisting of 46
company). Trustee of the Evergreen Funds from portfolios as of
1983 to 2010. Former Managing Director, Almanac 12/31/09)
Capital Management (commodities firm), former
Partner, Stonington Partners, Inc. (private
equity fund), former Director, Obagi Medical
Products Co. and former Director, Lincoln
Educational Services.
Judith M. Johnson Trustee, since 2008 Retired. Prior thereto, Chief Executive Officer None
61 and Chief Investment Officer of Minneapolis
Employees Retirement Fund from 1996 to 2008.
Ms. Johnson is a certified public accountant
and a certified managerial accountant.
Wells Fargo Managed Account CoreBuilder Shares 17
Other Information (Unaudited)
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- ----------------------- -------------------- ----------------------------------------------- -------------------
David F. Larcker Advisory Board James Irvin Miller Professor of Accounting at None
59 Trustee, since 2008 the Graduate School of Business, Stanford
University, Director of Corporate Governance
Research Program and Co-Director of The Rock
Center for Corporate Governance since 2006.
From 2005 to 2008, Professor of Accounting at
the Graduate School of Business, Stanford
University. Prior thereto, Ernst & Young
Professor of Accounting at The Wharton School,
University of Pennsylvania from 1985 to 2005.
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, None
57 Wharton School, University of Pennsylvania.
Director of the Boettner Center on Pensions and
Retirement Research. Research associate and
board member, Penn Aging Research Center.
Research associate, National Bureau of Economic
Research.
Timothy J. Penny Trustee, since 1996 President and CEO of Southern Minnesota None
58 Initiative 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.
Michael S. Scofield(3) Trustee, since 2010 Trustee of the Evergreen Funds from 1984 to None
67 2010. Retired Attorney, Law Offices of Michael
S. Scofield and former Director and Chairman,
Branded Media Corporation (multi-media branding
company).
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke & Daniels. None
70 General 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 Executive Vice President of Wells Fargo Bank, None
51 2003 N.A. and President of Wells Fargo Funds
Management, LLC since 2003. Senior Vice
President and Chief Administrative Officer of
Wells Fargo Funds Management, LLC from 2001 to
2003.
C. David Messman Secretary, since Senior Vice President and Secretary of Wells None
50 2000; Chief Legal Fargo Funds Management, LLC since 2001. Vice
Counsel, since 2003 President and Managing Senior Counsel of Wells
Fargo Bank, N.A. since 1996.
Kasey Phillips(4) Treasurer, since Senior Vice President of Evergreen Investment None
39 2009 Management Company, LLC since 2006 and
currently the Treasurer of the Evergreen Funds
since 2005. Vice President and Assistant Vice
President of Evergreen Investment Services,
Inc. from 1999 to 2006.
David Berardi(5) Assistant Treasurer, Vice President of Evergreen Investment None
35 since 2009 Management Company, LLC since 2008. Assistant
Vice President of Evergreen Investment
Services, Inc. from 2004 to 2008. Manager of
Fund Reporting and Control for Evergreen
Investment Management Company, LLC since 2004.
18 Wells Fargo Managed Account CoreBuilder Shares
Other Information (Unaudited)
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
- ----------------------- -------------------- ----------------------------------------------- -------------------
Jeremy DePalma(5) Assistant Treasurer, Senior Vice President of Evergreen Investment None
36 since 2009 Management Company, LLC since 2008. Vice
President, Evergreen Investment Services, Inc.
from 2004 to 2007. Assistant Vice President,
Evergreen Investment Services, Inc. from 2000
to 2004 and the head of the Fund Reporting and
Control Team within Fund Administration since
2005.
Debra Ann Early Chief Compliance Chief Compliance Officer of Wells Fargo Funds None
46 Officer, Management, LLC since 2007. Chief Compliance
since 2007 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 July 9, 2010.
(4.) Effective November 1, 2009.
(5.) Treasurer during the period from June 1, 2009 to October 31, 2009.
Assistant Treasurer effective November 1, 2009.
Wells Fargo Managed Account CoreBuilder Shares 19
Other Information (Unaudited)
BOARD CONSIDERATION OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM) - SERIES G
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"), all of the members of which 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 meet in person to review and consider the continuation of any investment
advisory and sub-advisory agreements. In this regard, the Board reviewed and
re-approved: (i) an investment advisory agreement with Wells Fargo Funds
Management, LLC ("Funds Management") for the Wells Fargo Managed Account
CoreBuilder Shares(SM) - Series M and Wells Fargo Managed Account CoreBuilder
Shares(SM) - Series G (the "Funds"); and (ii) an investment sub-advisory
agreement with Wells Capital Management Incorporated ("Wells Capital
Management") for the Funds. The investment advisory agreements with Funds
Management and the investment sub-advisory agreements with Wells Capital
Management are collectively referred to as the "Advisory Agreements."
More specifically, at a meeting held on March 25-26, 2010 (the "Meeting"), the
Board considered the factors and reached the conclusions described below
relating to the selection of Funds Management and Wells Capital Management and
the continuation of the Advisory Agreements. Prior to the Meeting, the Trustees
conferred extensively among themselves and with representatives of Funds
Management about these matters. The Board also met throughout the year and
received information that was useful to them in considering the continuation of
the Advisory Agreements. The Independent Trustees were assisted in their
evaluation of the Advisory Agreements by independent legal counsel, from whom
they received separate legal advice and with whom they met separately from Funds
Management.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board received and considered various information regarding the nature,
extent and quality of services provided to the Funds by Funds Management and
Wells Capital Management under the Advisory Agreements. The Board also received
and considered information provided in response to a detailed set of requests
submitted by the Independent Trustees' independent legal counsel. The Board
received and considered, among other things, information about the background
and experience of senior management of Funds Management, and the qualifications,
backgrounds, tenures and responsibilities of the portfolio managers primarily
responsible for the day-to-day portfolio management of the Funds.
The Board evaluated the ability of Funds Management and Wells Capital
Management, based on their respective financial condition, resources, reputation
and other attributes, to attract and retain qualified investment professionals,
including research, advisory, and supervisory personnel. The Board further
considered the compliance programs and compliance records of Funds Management
and Wells Capital Management. In addition, the Board took into account the
administrative services provided to the Funds by Funds Management and its
affiliates.
In considering these matters, the Board considered not only the specific
information presented in connection with the Meeting, but also the knowledge
gained over the course of interacting with Funds Management and Wells Capital
Management about various topics, including Funds Management's oversight of
service providers. Based on the above factors, together with those referenced
below, the Board concluded that it was satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and Wells Capital Management.
FUND PERFORMANCE AND EXPENSES
The Board received and considered information regarding the "zero fee and
expense" structure of each Fund. Specifically, the Board noted that each Fund's
gross operating expense ratio and each of its various components, including
advisory fees, administration fees, custody fees, Rule 12b-1 fees, and other
fees, were zero. The Board also noted Funds Management's representations that
the Funds are special purpose mutual funds for use exclusively within Funds
Management's separately managed account ("SMA") advisory business and, as such,
Funds Management would assume and pay or reimburse all of the ordinary operating
expenses of the Funds under an Expense Assumption Agreement but excluding
portfolio transaction or other investment related costs, fees payable for
services provided by the Funds' securities lending agent, interest, taxes,
leverage expenses, and other expenses not incurred in the ordinary cost of the
20 Wells Fargo Managed Account CoreBuilder Shares
Other Information (Unaudited)
Funds' business. The Board further noted that Funds Management is paid a
negotiated fee by each SMA sponsor and that the fee level would be identical for
all sponsors of SMAs that invest in CoreBuilder Shares(SM) - Series M, and
identical for all sponsors of SMAs that invest in CoreBuilder Shares(SM) -
Series G.
In light of this unique fee and distribution structure, the Board does not
conduct a performance and fee review relative to a peer group or universe. The
Board concluded that the fee and distribution structure of the Funds supported
the re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUB-ADVISORY FEE RATES
The Board reviewed and considered that the contractual investment advisory fee
rate payable by the Funds to Funds Management for investment advisory services
(the "Advisory Agreement Rate") was zero, and also reviewed and considered that
each Fund's other fees would normally be zero, because of Funds Management's
commitment to assume and pay or reimburse all of the ordinary operating expenses
of the Funds under an Expense Assumption Agreement. The Board also reviewed and
considered the contractual investment sub-advisory fee rate payable by Funds
Management to Wells Capital Management for investment sub-advisory services (the
"Sub-Advisory Agreement Rate"), and that such fees are paid from the fees Funds
Management receives from SMA sponsors and not by the Fund.
The Board noted that the Advisory Agreement Rate for the Funds was consistent
with the zero fee structure, and was acceptable in light of the services covered
by the Advisory Agreements. The Board also reviewed and considered the
Sub-Advisory Agreement Rates and concluded that the Sub-Advisory Agreement Rates
were acceptable in light of the services covered by the Sub-Advisory Agreements.
PROFITABILITY
The Board received and considered a profitability analysis of Funds Management
and its affiliates, but did not consider separate profitability information with
respect to the Funds in light of their unique fee and distribution structure.
ECONOMIES OF SCALE
In light of the unique fee and distribution structure of the Funds, the Board
did not conduct an analysis of economies of scale in the context of reviewing
the Funds' Advisory Agreements.
INFORMATION ABOUT SERVICES AND FEES OFFERED 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 similarly situated
series of the Trust, and those offered by Wells Capital Management to other
clients. The Board concluded that the Advisory Agreement Rates and the
Sub-Advisory Agreement Rates were acceptable.
OTHER BENEFITS TO FUNDS MANAGEMENT AND WELLS CAPITAL MANAGEMENT
The Board received and considered information regarding potential "fall-out" or
ancillary benefits received by Funds Management and its affiliates, including
Wells Capital Management, as a result of their relationship with the Funds.
Ancillary benefits could include, among others, benefits directly attributable
to the relationship of Funds Management and Wells Capital Management with the
Funds and benefits potentially derived from an increase in Funds Management's
and Wells Capital Management's business as a result of their relationship with
the Funds (such as the ability to market to shareholders other financial
products offered by Funds Management and its affiliates, including Wells Capital
Management). The Board noted that Funds Management receives payments from the
SMA sponsors and that it has agreed to assume and pay or reimburse certain
operating expenses.
The Board has reviewed information about the policies of Wells Capital
Management in seeking the best execution of portfolio transactions, whether and
to what extent soft dollar credits are sought and how any such credits are
utilized, any benefits that may be realized by using an affiliated broker and
the controls applicable to brokerage allocation procedures. The Board has
reviewed information about Funds Management's and Wells Capital Management's
methods for allocating portfolio investment opportunities among the Funds and
other clients.
Wells Fargo Managed Account CoreBuilder Shares 21
Other Information (Unaudited)
OTHER FACTORS AND BROADER REVIEW
The Board also considered the markets for distribution of the Funds' shares,
including the multiple channels through which the Funds' shares are offered and
sold. The Board noted that the Funds are part of one of the few fund families
that have both direct-to-fund and intermediary distribution channels. As
discussed above, the Board reviews detailed materials received from Funds
Management and Wells Capital Management annually as part of the re-approval
process under Section 15(c) of the 1940 Act. The Board also reviews and assesses
information about the quality of the services that the Funds receive throughout
the year.
CONCLUSION
After considering the above-described factors and based on its deliberations and
its evaluation of the information described above, the Board concluded that
approval of the continuation of the Advisory Agreements for the Funds was in the
best interest of the Funds and their shareholders. Accordingly, the Board
unanimously approved the continuation of the Advisory Agreements for an
additional one-year period.
22 Wells Fargo Managed Account CoreBuilder Shares
List of Abbreviations
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depositary Receipt
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDO -- Collateralized Debt Obligation
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CIFG -- CDC (Caisse des Depots et Consignations) IXIS Financial Guarantee
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
ECFA -- Educational & Cultural Facilities Authority
EDFA -- Economic Development Finance Authority
ETET -- Eagle Tax-Exempt Trust
ETF -- Exchange-Traded Fund
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHAG -- Federal Housing Agency
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Farm Service Agency
GDR -- Global Depositary Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HCFR -- Healthcare Facilities Revenue
HEFA -- Health & Educational Facilities Authority
HEFAR -- Higher Education Facilities Authority Revenue
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
HUD -- Housing & Urban Development
IDA -- Industrial Development Authority
IDAG -- Industrial Development Agency
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Company
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MFMR -- Multi-Family Mortgage Revenue
MMD -- Municipal Market Data
MTN -- Medium Term Note
MUD -- Municipal Utility District
NATL-RE -- National Public Finance Guarantee Corporation
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PFFA -- Public Facilities Financing Authority
plc -- Public Limited Company
PSFG -- Public School Fund Guaranty
R&D -- Research & Development
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
SPDR -- Standard & Poor's Depositary Receipts
STIT -- Short-Term Investment Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
XLCA -- XL Capital Assurance
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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.
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(C) 2010 Wells Fargo Funds Management, LLC. All rights reserved. 124155 08-10
SCBG/SAR129 06-10
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Semi-Annual Report
June 30 2010
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM)
- - SERIES M
REDUCE CLUTTER. SAVE TREES.
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Contents
PERFORMANCE HIGHLIGHTS .................................................... 2
FUND EXPENSES ............................................................. 4
PORTFOLIO OF INVESTMENTS .................................................. 5
FINANCIAL STATEMENTS
Statement of Assets and Liabilities ....................................... 9
Statement of Operations ................................................... 10
Statements of Changes in Net Assets ....................................... 11
Financial Highlights ...................................................... 12
NOTES TO FINANCIAL STATEMENTS ............................................. 14
OTHER INFORMATION ......................................................... 17
LIST OF ABBREVIATIONS ..................................................... 22
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
2 Wells Fargo Managed Account CoreBuilder Shares
Performance Highlights
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM) - SERIES M
INVESTMENT OBJECTIVE
The WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM) - SERIES M (the Fund)
seeks total return, consisting of current income and capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Lyle J. Fitterer, CFA, CPA
Robert J. Miller
FUND INCEPTION
April 15, 2008
CREDIT QUALITY(1)
(AS OF JUNE 30, 2010)
(PIE CHART)
AAA/Aaa 6%
AA/Aa 20%
A/A 30%
BBB/Baa 21%
BB/Ba 4%
B/B 1%
CCC/Caa and below 1%
Unrated 17%
EFFECTIVE MATURITY DISTRIBUTION(2)
(AS OF JUNE 30, 2010)
(PIE CHART)
0-1 Year 1%
1-3 Years 11%
3-5 Years 36%
5-10 Years 39%
10-20 Years 7%
20 + Years 6%
- ----------
(1.) The ratings indicated are from Standard & Poor's, Fitch, and/or Moody's
Investors Service. if a security was rated by all three rating agencies,
the middle rating was utilized. If rated by two of three rating agencies,
the lower rating was utilized and if rated by one of the agencies that
rating was utilized. Credit Quality Ratings: Credit quality ratings apply
to underlying holdings of the Fund and not the Fund itself. Standard and
Poor's rates the creditworthiness of bonds, ranging from AAA (highest) to D
(lowest). Ratings from A to CCC may be modified by the addition of a plus
(+) or minus (-) sign to show relative standing within the rating
categories. Moody's rates the creditworthiness of bonds, ranging from Aaa
(highest) to CC (lowest). Ratings Aa to B may be modified by the addition
of a number 1 (highest) to 3 (lowest) to show relative standing within the
ratings categories. Fitch rates the creditworthiness of bonds, ranging from
AAA (highest) to D (lowest). Credit quality is subject to change and is
calculated based on the total investments of the Fund.
(2.) Effective maturity distribution is subject to change and is calculated
based on the total investments of the Fund.
Wells Fargo Managed Account Corebuilder Shares 3
Performance Highlights
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES(SM) - SERIES M (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN (%) (AS OF JUNE 30, 2010)
6 months* 1 Year Life of Fund
--------- ------ ------------
CoreBuilder Shares(SM) - Series M 4.89 16.53 10.26
Barclays Capital Municipal Bond Index(3) 3.31 9.61 5.49
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE BY CALLING 1-800-368-0627.
Bond fund values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
In general, when interest rates rise, bond fund values fall and investors may
lose principal value. The use of derivatives may reduce returns and/or increase
volatility. Active trading results in increased turnover and trading expenses,
and may generate higher short-term capital gains. Certain investment strategies
tend to increase the total risk of an investment (relative to the broader
market).This fund is exposed to high-yield securities risk. Consult the Fund's
prospectus for additional information on these and other risks. A portion of the
Fund's income may be subject to federal, state, and/or local income taxes or the
alternative minimum tax (AMT). Any capital gains distributions may be taxable.
CoreBuilder Shares are a series of investment options within the separately
managed accounts advised or subadvised by Wells Fargo Funds Management, LLC. The
shares are fee-waived mutual funds that enable certain separately managed
account investors to achieve greater diversification than smaller managed
accounts might otherwise achieve.
- ----------
(3.) Barclays Capital Municipal Bond Index is an unmanaged index composed of
long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot
invest directly in an index.
4 Wells Fargo Managed Account CoreBuilder Shares
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 January 1, 2010
to June 30, 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
01-01-2010 06-30-2010 the Period Expense Ratio
------------- ------------- ----------- -------------
Actual $1,000.00 $1,048.90 $0.00 0.00%
Hypothetical (5% return before expenses) $1,000.00 $1,024.79 $0.00 0.00%
Wells Fargo Managed Account CoreBuilder Shares 5
Portfolio of Investments--June 30 2010 (Unaudited)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
- ------------ ---------------------------------------------------------------------------- -------- ------------- ----------
MUNICIPAL BONDS & NOTES: 98.07%
ALABAMA: 0.37%
$ 25,000 COUNTY OF JEFFERSON AL SEWER REVENUE SERIES C-5 (SEWER REVENUE,
XLCA COMPANY INSURED)+/-ss(a)(m)(n) 1.05% 02/01/2040 $ 10,000
25,000 COUNTY OF JEFFERSON AL SEWER REVENUE SUB-SERIES B-1-C (SEWER REVENUE,
FGIC INSURED)+/-ss(a)(m)(n) 1.04 02/01/2042 10,000
20,000
----------
ARIZONA: 3.46%
100,000 ARIZONA SCHOOL FACILITIES BOARD REVENUE STATE SCHOOL TRUST
(OTHER REVENUE, AMBAC INSURED) 5.00 07/01/2016 105,919
85,000 VERRADO AZ COMMUNITY FACILITIES DISTRICT # 1 (PROPERTY TAX REVENUE) 4.85 07/15/2014 84,158
190,077
----------
CALIFORNIA: 17.51%
400,000 ALAMEDA CA CORRIDOR TRANSPORTATION AUTHORITY SUB LIEN SERIES A
(TRANSPORTATION REVENUE, AMBAC INSURED)## 5.54 10/01/2018 254,596
100,000 CALIFORNIA PCFA SERIES B REPUBLIC SERVICES INCORPORATED PROJECT SERIES B
(RESOURCE RECOVERY REVENUE)+/-ss 5.25 06/01/2023 102,338
80,000 CORONA-NORCA CA USD CAPITAL APPRECIATION ELECTION 2006 SERIES C
(PROPERTY TAX REVENUE, AGM INSURED)+/-ss 1.27 08/01/2039 55,202
200,000 ESCONDIDO CA UNION HIGH SCHOOL DISTRICT CAPITAL APPRECIATION ELECTION 2008
SERIES A (PROPERTY TAX REVENUE, ASSURED GUARANTY)## 6.09 08/01/2029 63,644
200,000 GILROY CA USD CAPITAL APPRECIATION BONDS ELECTION 2008-S
(PROPERTY TAX REVENUE, ASSURED GUARANTY)## 6.35 08/01/2032 50,282
100,000 HAWTHORNE CA SCHOOL DISTRICT CAPITAL APPRECIATION ELECTION OF 1997-C
(PROPERTY TAX REVENUE, NATL-RE INSURED)## 6.71 11/01/2025 36,408
45,000 NORTHERN CA GAS AUTHORITY # 1 LIBOR (UTILITIES REVENUE)+/-ss 0.80 07/01/2017 36,619
100,000 OAKLAND CA USD ALAMEDA COUNTY ELECTION 2006 SERIES A
(PROPERTY TAX REVENUE) 6.50 08/01/2024 110,725
50,000 RICHMOND CA JOINT POWERS FINANCING AUTHORITY CIVIC CENTER PROJECT
(LEASE REVENUE, ASSURED GUARANTY) 5.88 08/01/2037 53,049
140,000 SAN DIEGO COUNTY CA COP (LEASE REVENUE, AMBAC INSURED) 5.63 09/01/2012 143,801
100,000 UNIVERSITY OF CALIFORNIA REGENTS MEDICAL CENTER SERIES C-2
(HEALTH & HOSPITAL REVENUE)+/-ss 1.48 05/15/2047 55,000
961,664
----------
COLORADO: 4.14%
200,000 COLORADO ECFA CHARTER SCHOOL-AMERICAN ACADEMY PROJECT
(LEASE REVENUE, MORAL OBLIGATION) 7.13 12/01/2033 227,536
----------
FLORIDA: 2.50%
175,000 CITY OF SUNRISE FL PUBLIC FACILITIES CAPITAL APPRECIATION SERIES B
(SALES TAX REVENUE, NATL-RE INSURED)## 3.91 10/01/2016 137,158
----------
GEORGIA: 0.85%
50,000 ATLANTA GA DEVELOPMENT AUTHORITY TUFF YAMACRAW LLC
PROJECT SERIES A (IDR, AMBAC INSURED) 5.00 01/01/2027 46,847
----------
IDAHO: 6.54%
100,000 BOISE-KUNA ID IRRIGATION DISTRICT ARROWROCK HYDROELECTRIC PROJECT
(ELECTRIC, POWER & LIGHT REVENUE) 7.38 06/01/2040 113,273
250,000 IDAHO HOUSING & FINANCE ASSOCIATION LIBERTY CHARTER SCHOOL SERIES A
(OTHER REVENUE) 6.00 06/01/2038 245,665
358,938
----------
6 Wells Fargo Managed Account CoreBuilder Shares
Portfolio of Investments--June 30 2010 (Unaudited)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
- ------------ ---------------------------------------------------------------------------- -------- ------------- ----------
ILLINOIS: 5.58%
$ 100,000 ILLINOIS FINANCE AUTHORITY MEDICAL DISTRICT COMMISSION PROJECT A
(HCFR, CIFG INSURED) 4.13% 09/01/2018 $ 100,130
40,000 ILLINOIS HOUSING DEVELOPMENT AUTHORITY SERIES A-1 (MFHR, GNMA INSURED) 5.05 12/20/2020 39,666
150,000 LAKE COUNTY IL COMMUNITY HIGH SCHOOL DISTRICT # 117 ANTIOCH CAPITAL
APPRECIATION SERIES B (PROPERTY TAX REVENUE, NATL-RE & FGIC INSURED)## 4.00 12/01/2016 116,142
75,000 LAKE COUNTY IL SCHOOL DISTRICT # 38 BIG HOLLOW CAPITAL APPRECIATION
(PROPERTY TAX REVENUE, AMBAC INSURED)## 4.68 02/01/2019 50,339
306,277
----------
INDIANA: 2.19%
110,000 JASPER COUNTY IN PCR NORTHERN SERIES B (IDR, NATL-RE & FGIC INSURED) 5.60 11/01/2016 120,047
----------
IOWA: 0.91%
50,000 XENIA RURAL WATER DISTRIBUTION IA (WATER REVENUE, CIFG INSURED) 3.70 12/01/2010 49,744
----------
KANSAS: 2.36%
100,000 WYANDOTTE COUNTY/KANSAS CITY KS CAPITAL APPRECIATION SALES TAX
SUBORDINATE LIEN (SALES TAX REVENUE)## 5.86 06/01/2021 53,178
75,000 WYANDOTTE COUNTY KS UNITED GOVERNMENT REFERENDUM SALES TAX
SECOND LIEN AREA B (SALES TAX REVENUE) 5.00 12/01/2020 76,494
129,672
----------
KENTUCKY: 2.25%
150,000 KENTUCKY EDFA NORTON HEALTHCARE INCORPORATED SERIES B
(HEALTH, HOSPITAL, NURSING HOME REVENUE, NATL-RE INSURED)## 5.83 10/01/2023 69,993
50,000 KENTUCKY EDFA UNREFUNDED BALANCE NORTON C (HCFR, NATL-RE INSURED)+/-ss 5.95 10/01/2017 53,335
123,328
----------
LOUISIANA: 0.95%
50,000 NEW ORLEANS LA AVIATION BOARD GULF OPPORTUNITY ZONE CONSOLIDATED RENTAL
CAR SERIES A (AIRPORT REVENUE) 6.50 01/01/2040 52,187
----------
MASSACHUSETTS: 2.05%
100,000 MASSACHUSETTS DEVELOPMENT FINANCE AGENCY SABIS INTERNATIONAL
CHARTER SERIES A (OTHER REVENUE) 8.00 04/15/2039 112,405
----------
MICHIGAN: 5.88%
200,000 COMSTOCK MI PUBLIC SCHOOLS CAPITAL APPRECIATION (PROPERTY TAX
REVENUE, AMBAC INSURED)## 2.64 05/01/2014 180,686
100,000 MICHIGAN MUNICIPAL BOND AUTHORITY LOCAL GOVERNMENT LOAN
PROGRAM SERIES A (OTHER REVENUE, AMBAC INSURED) 5.00 05/01/2013 103,612
50,000 MICHIGAN MUNICIPAL BOND AUTHORITY LOCAL GOVERNMENT LOAN
PROGRAM SERIES G (OTHER REVENUE, AMBAC INSURED)## 4.37 05/01/2016 38,807
323,105
----------
MISSOURI: 4.76%
240,000 ST. LOUIS MO LAMBERT-ST. LOUIS INTERNATIONAL AIRPORT SERIES B
(AIRPORT REVENUE, NATL-RE & FGIC INSURED) 6.00 07/01/2013 261,610
----------
NEVADA: 1.68%
85,000 CLARK COUNTY NV SCHOOL DISTRICT SERIES B (PROPERTY TAX
REVENUE, AGM INSURED) 5.00 06/15/2017 92,432
----------
NEW JERSEY: 1.91%
100,000 NEW JERSEY STATE HIGHER EDUCATION ASSISTANCE AUTHORITY SERIES A
(STUDENT LOAN REVENUE) 5.63 06/01/2030 105,110
----------
Wells Fargo Managed Account CoreBuilder Shares 7
Portfolio of Investments--June 30 2010 (Unaudited)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
- ------------ ---------------------------------------------------------------------------- -------- ------------- ----------
NEW YORK: 1.90%
$ 50,000 SENECA COUNTY NY IDAG SENECA MEADOWS INCORPORATED PROJECT (IDR)+/-ss++ 6.63% 10/01/2035 $ 50,222
50,000 YONKERS NY IDAG SARAH LAWRENCE COLLEGE PROJECT SERIES A (COLLEGE &
UNIVERSITY REVENUE) 5.75 06/01/2024 53,901
104,123
----------
PENNSYLVANIA: 5.96%
240,000 ALLEGHENY COUNTY PA AIRPORT AUTHORITY PITTSBURGH INTERNATIONAL AIRPORT
(AIRPORT REVENUE, NATL-RE & FGIC INSURED) 6.13 01/01/2016 242,275
85,000 CHESTER COUNTY PA IDA RENAISSANCE ACADEMY PROJECT SERIES A
(PRIVATE SCHOOL REVENUE) 5.25 10/01/2010 84,964
327,239
----------
PUERTO RICO: 1.00%
50,000 PUERTO RICO SALES TAX FINANCING CORPORATION FIRST SUB-SERIES A
(SALES TAX REVENUE) 6.38 08/01/2039 55,007
----------
SOUTH CAROLINA: 6.50%
100,000 ALLENDALE COUNTY SC SCHOOL DISTRICT ENERGY SAVINGS SPECIAL OBLIGATION
(LEASE REVENUE, STATE AID WITHHOLDING) 8.50 12/01/2018 104,991
240,000 TOWN OF NEWBERRY SC NEWBERRY COUNTY SCHOOL DISTRICT PROJECT (LEASE REVENUE) 5.25 12/01/2017 252,094
357,085
----------
TENNESSEE: 3.88%
100,000 ELIZABETHTON TN HEALTH & EDUCATIONAL FACILITIES BOARD PREFUNDED SERIES B
(HCFR, NATL-RE & IBC INSURED) 7.75 07/01/2029 112,392
100,000 TENNESSEE ENERGY ACQUISITION CORPORATION SERIES A (UTILITIES REVENUE) 5.25 09/01/2019 100,694
213,086
----------
TEXAS: 9.90%
80,000 GARZA COUNTY TX PUBLIC FACILITY CORPORATION (LEASE REVENUE) 4.75 10/01/2010 80,414
100,000 HOUSTON TX AIRPORT SYSTEMS AMT SUB SERIES C (AIRPORT REVENUE,
XLCA INSURED)+/-ss(a)(m)(n) 0.69 07/01/2032 89,328
250,000 LA VERNIA TX HIGHER EDUCATION FINANCE CORPORATION SERIES A
(EDUCATIONAL FACILITIES REVENUE) 6.25 02/15/2017 269,613
50,000 TEXAS PRIVATE ACTIVITY SURFACE (HIGHWAY TOLLS REVENUE) 7.50 06/30/2032 52,248
50,000 TEXAS PRIVATE ACTIVITY SURFACE (HIGHWAY TOLLS REVENUE) 7.50 06/30/2033 52,123
543,726
----------
UTAH: 2.09%
125,000 SPANISH FORK CITY UT AMERICAN LEADERSHIP ACADEMY (EDUCATIONAL FACILITIES
REVENUE)++ 5.55 11/15/2021 114,885
----------
VIRGIN ISLANDS: 0.95%
50,000 VIRGIN ISLANDS PFA SUB MATCHING LOAN NOTES SERIES A (OTHER REVENUE) 6.00 10/01/2039 51,863
----------
TOTAL MUNICIPAL BONDS & NOTES (COST $5,186,925) 5,385,151
----------
SHARES YIELD
- ------------ --------
INVESTMENT COMPANIES: 2.24%
122,882 WELLS FARGO NATIONAL TAX-FREE MONEY MARKET TRUST(u)(l) 0.20 122,882
----------
TOTAL SHORT-TERM INVESTMENTS (COST $122,882) 122,882
----------
TOTAL INVESTMENTS IN SECURITIES
(COST $5,309,807)* 100.31% 5,508,033
OTHER ASSETS AND LIABILITIES, NET (0.31) (16,795)
------- ----------
TOTAL NET ASSETS 100.00% $5,491,238
------- ----------
8 Wells Fargo Managed Account CoreBuilder Shares
Portfolio of Investments--June 30 2010 (Unaudited)
- ----------
+/- Variable rate investments.
ss These securities are subject to a demand feature which reduces the
effective maturity.
(m) An auction-rate security whose interest rate resets at predetermined
short-term intervals through a Dutch auction; rate shown represents the
rate in effect at period-end.
(n) Auction to set interest rate on security failed at period end due to
insufficient investor interest; failed auction does not itself cause a
default.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
## Zero coupon security. Rate represents yield to maturity.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
(u) Rate shown is the 7-day annualized yield at period end.
(l) Investment in an affiliate.
* Cost for federal income tax purposes is $5,309,807 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $221,013
Gross unrealized depreciation (22,787)
--------
Net unrealized appreciation $198,226
The accompanying notes are an integral part of these financial statements.
Wells Fargo Managed Account CoreBuilder Shares 9
Statements of Assets and Liabilities--June 30 2010 (Unaudited)
ASSETS
Investments
In unafilliated securities, at value ...................... $5,385,151
In affiliated securities, at value ........................ 122,882
----------
Total investments, at value (see cost below) ................. 5,508,033
Receivables for interest .................................. 59,339
Prepaid expenses and other assets ......................... 2,595
----------
Total assets ................................................. 5,569,967
----------
LIABILITIES
Payable for investments purchased ......................... 55,142
Dividends payable ......................................... 23,587
----------
Total liabilities ......................................... 78,729
----------
TOTAL NET ASSETS ............................................. $5,491,238
----------
NET ASSETS CONSIST OF
Paid-in capital ........................................... $5,235,783
Overdistributed net investment income ..................... (464)
Accumulated net realized gain on investments .............. 57,693
Net unrealized appreciation of investments ................ 198,226
----------
TOTAL NET ASSETS ............................................. $5,491,238
----------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE(1)
Net assets ................................................ $5,491,238
Shares outstanding ........................................ 523,500
Net asset value and offering price per share .............. $ 10.49
----------
Investments, at cost ......................................... $5,309,807
----------
- ----------
(1.) The Fund has an unlimited number of authorized shares.
The accompanying notes are an integral part of these financial statements.
10 Wells Fargo Managed Account CoreBuilder Shares
Statement of Operations--For the Six Months Ended June 30 2010 (Unaudited)
INVESTMENT INCOME
Interest .................................................. $ 134,589
Income from affiliated securities ......................... 86
----------
Total investment income ...................................... 134,675
----------
Net investment income ........................................ 134,675
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from unaffiliated securities ............... 40,543
Net change in unrealized appreciation (depreciation) of
unaffiliated securities ................................... 79,353
----------
Net realized and unrealized gain (loss) on investments ....... 119,896
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......... $ 254,571
----------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Managed Account CoreBuilder Shares 11
Statements of Changes in Net Assets
For the
Six Months
Ended For the
June Year Ended
30, 2010 December
(Unaudited) 31, 2009
------------ -----------
INCREASE IN NET ASSETS
Beginning net assets ..................................... $ 5,257,341 $ 4,639,871
OPERATIONS
Net investment income .................................... 134,675 283,522
Net realized gain on investments ......................... 40,543 277,492
Net change in unrealized appreciation (depreciation) of
investments ............................................ 79,353 591,562
----------- -----------
Net increase in net assets resulting from operations ........ 254,571 1,152,576
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income .................................... (134,801) (283,441)
Net realized gains ....................................... 0 (257,833)
----------- -----------
Total distributions to shareholders ......................... (134,801) (541,274)
----------- -----------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold ................................ 114,127 6,168
NET INCREASE IN NET ASSETS .................................. 233,897 617,470
----------- -----------
ENDING NET ASSETS ........................................... $ 5,491,238 $ 5,257,341
----------- -----------
ENDING BALANCE OF OVERDISTRIBUTED NET INVESTMENT INCOME ..... $ (464) $ (338)
SHARES ISSUED AND REDEEMED
----------- -----------
Shares sold .............................................. 10,870 600
The accompanying notes are an integral part of these financial statements.
12 Wells Fargo Managed Account CoreBuilder Shares
Financial Highlights
Beginning Net Realized Distributions Distributions
Net Asset Net and Unrealized from Net from Net
Value Per Investment Gain (Loss) Investment Realized
Share Income on Investments Income Gains
--------- ---------- -------------- ------------- -------------
January 1, 2010 to June 30, 2010 (unaudited) .......... $10.26 0.27 0.23 (0.27) 0.00
January 1, 2009 to December 31, 2009 .................. $ 9.06 0.55 1.70 (0.55) (0.50)
April 15, 2008(3) to December 31, 2008 ................ $10.00 0.37 (0.92) (0.37) (0.02)
- ----------
(1.) Returns for periods of less than one year are not annualized.
(2.) Portfolio turnover rates presented for periods of less than one year are
not annualized.
(3.) Commencement of operations.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Managed Account CoreBuilder Shares 13
Financial Highlights
Ratio of
Net Investment
Ending Income to
Net Asset Average Net Portfolio Net Assets at
Value Per Assets Total Turnover End of Period
Share (annualized) Return(1) Rate(2) (000s) omitted
- --------- -------------- -------- --------- ---------------
$10.49 5.09% 4.89% 23% $5,491
$10.26 5.50% 25.50% 157% $5,257
$ 9.06 5.29% (5.74)% 150% $4,640
14 Wells Fargo Managed Account CoreBuilder Shares
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 are for Wells Fargo Managed
Accounts CoreBuilder Shares - Series M (the "Fund"). The Fund is a diversified
series of the Trust, a Delaware statutory trust organized on March 10, 1999.
The Fund is a special purpose government securities fund that is used in
combination with selected individual securities to effectively model
institutional-level investment strategies. As an investment option within the
separately managed accounts advised or subadvised by Wells Fargo Funds
Management, LLC, the Fund enables certain separately managed account investors
to achieve greater diversification than small managed accounts might otherwise
achieve.
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
Certain fixed income securities with maturities exceeding 60 days are valued by
using a pricing service approved by the Trust's Board of Trustees. This service
uses market prices as quoted by an independent pricing service or by dealers in
these securities when, in the service's judgment, these prices are readily
available and are representative of the securities' fair values. For some
securities, such prices are not readily available. These securities will
generally be fair valued using the methods which include consideration of yields
or prices of securities of comparable quality, coupon rate, maturity and type of
issue, indications as to values from dealers in securities, trading
characteristics and general market conditions.
Debt securities of sufficient credit quality with original maturities of 60 days
or less, generally are valued at amortized cost which approximates fair value.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates fair value.
Investments in open-end mutual funds are valued at net asset value.
Investments which are not valued using any of the methods discussed above, are
valued at their fair value, as determined by procedures established in good
faith and approved by the Board of Trustees.
The valuation techniques used by the Fund to measure fair value are consistent
with the market approach, income approach and/or cost approach, where
applicable, for each security type.
WHEN-ISSUED TRANSACTIONS
The Fund may purchase securities on a forward commitment or 'when-issued' basis.
A Fund records a when-issued transaction on the trade date and will segregate
assets to cover its obligation by confirming the availability of qualifying
assets having a value sufficient to make payment for the securities purchased.
Securities purchased on a when-issued basis are marked-to-market daily and the
Fund begins earning interest on the settlement date. Losses may arise due to
changes in the market value of the underlying securities or if the counterparty
does not perform under the contract.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized daily based on the effective interest method. To the extent debt
obligations are placed on non-accrual status, any related interest income may be
reduced by writing off interest receivables when the collection of all or a
portion of interest has become
Wells Fargo Managed Account CoreBuilder Shares 15
Notes to Financial Statements (Unaudited)
doubtful based on consistently applied procedures. If the issuer subsequently
resumes interest payments or when the collectability of interest is reasonably
assured, the debt obligation is removed from non-accrual status.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared daily and distributed to shareholders
monthly. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
FEDERAL AND OTHER TAXES
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
tax-exempt income and any net realized capital gains (after reduction for
capital loss carryforwards) sufficient to relieve it from all, or substantially
all, federal income taxes. Accordingly, no provision for federal income taxes
was required.
The 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.
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. The three-level
hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). The Fund's investments are classified within the
fair value hierarchy based on the lowest level of input that is significant to
the fair value measurement. The 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.
As of June 30, 2010, the input used in valuing the Fund's assets, which are
carried at fair value, were as follows:
Significant
Significant Other Unobservable
Investments in Quoted Prices Observable Inputs Inputs
Securities (Level 1) (Level 2) (Level 3) Total
- ----------------------- ------------- ----------------- ------------ -----------
Municipal bonds & notes $ 0 $5,275,823 $109,328 $5,385,151
Investment companies 122,882 0 0 122,882
$ 122,882 $5,275,823 $109,328 $5,508,033
Further details on the major security types listed above can be found in the
Portfolio of Investments.
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining fair value:
Municipal
Bonds
& Notes
---------
BALANCE AS OF DECEMBER 31, 2009 $187,200
Realized gains 8,304
Change in unrealized appreciation (depreciation) 3,824
Net purchases (sales) (90,000)
Net transfers in and (out) of Level 3 0
BALANCE AS OF JUNE 30, 2010 $109,328
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) INCLUDED IN EARNINGS
RELATING TO SECURITIES HELD AT JUNE 30, 2010 $ 2,977
16 Wells Fargo Managed Account CoreBuilder Shares
Notes to Financial Statements (Unaudited)
4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES
Wells Fargo Funds Management, LLC ("Funds Management") is the investment adviser
to the Fund and is responsible for implementing the investment policies and
guidelines for the Fund and for supervising the sub-adviser, who is responsible
for the day-to-day portfolio management of the Fund. For providing these
services, Funds Management does not received a fee from the Fund but is entitled
to receive fees from the sponsors of wrap-fee programs.
Wells Capital Management Incorporated, an affiliate of Funds Management and
indirect wholly owned subsidiary of Wells Fargo & Company, is the sub-adviser to
the Fund. The sub-adviser is compensated for its services by Funds Management
from the fees Funds Management receives from sponsors of wrap-fee programs.
Generally, no ordinary operating fees or expenses are charged to the Fund. Funds
Management has contractually committed to absorb and pay all ordinary operating
expenses of the Fund, except portfolio transactions or other investment-related
costs (e.g. commissions), interest, taxes, leverage expenses and other expenses
not incurred in the ordinary course of the Fund's business. This commitment has
an indefinite term.
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) for the six
months ended June 30, 2010, were $1,250,809 and $1,170,398, respectively.
6. CONCENTRATION OF OWNERSHIP
From time to time, the Fund may have a concentration of one or more its
shareholders that hold a significant percentage of the Fund's shares
outstanding. Investment and/or voting activities of these shareholders with
respect their holdings in Fund shares could have a material impact on the Fund.
At June 30, 2010, there was one shareholder, an affiliate of Wells Fargo &
Company, which held 95.51% of the outstanding shares of the Fund.
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.
Wells Fargo Managed Account CoreBuilder Shares 17
Other Information (Unaudited)
PROXY VOTING INFORMATION
A description of the policies and procedures that the Fund uses 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 Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge on the Fund's 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 the Fund, except money market funds, are
publicly available on the Fund's 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
the Fund is publicly available on the Fund's Web site on a monthly, seven-day or
more delayed basis. The 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, the 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 Information(1) of each Fund. Each of the Trustees and
Officers listed below acts in identical capacities for each of the 132 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
Length Principal Occupations During Past Other
Name and Age of Service (2) Five Years Directorships
- ----------------------- -------------------- --------------------------------------- ----------------
Peter G. Gordon Trustee, since Co-Founder, Chairman, President and None
67 1998; CEO of Crystal Geyser. Water Company.
Chairman, since
2005
(Lead Trustee
since 2001)
Isaiah Harris, Advisory Board Retired. Prior thereto, President CIGNA
Jr. Trustee, since and CEO of BellSouth Advertising Corporation;
57 2008 and Publishing Corp from 2005 to Deluxe
2007, President and CEO of BellSouth Corporation
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.
Dr. Leroy Keith, Jr.(3) Trustee, since Chairman, Bloc Global Services Trustee, Phoenix
71 2010 (development and construction), Fund Complex
Trustee, Phoenix Fund Complex and (consisting of
Director, Diversapack Co. (packaging 46 portfolios as
company). Trustee of the Evergreen of 12/31/09)
Funds from 1983 to 2010. Former
Managing Director, Almanac Capital
Management (commodities firm), former
Partner, Stonington Partners, Inc.
(private equity fund), former Director,
Obagi Medical Products Co. and former
Director, Lincoln Educational Services.
Judith M. Johnson Trustee, since Retired. Prior thereto, Chief None
61 2008 Executive Officer and Chief Investment
Officer of Minneapolis Employees
Retirement Fund from 1996 to 2008.
Ms. Johnson is a certified public
accountant and a certified
managerial accountant.
18 Wells Fargo Managed Account CoreBuilder Shares
Other information (Unaudited)
Position Held and
Length Principal Occupations During Past Other
Name and Age of Service (2) Five Years Directorships
- ----------------------- -------------------- --------------------------------------- ----------------
David F. Larcker Advisory Board James Irvin Miller Professor of None
59 Trustee, since Accounting at the Graduate School of
2008 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.
Olivia S.Mitchell Trustee, since Professor of Insurance and Risk None
57 2006 Management, Wharton School, University
of Pennsylvania. Director of the
Boettner Center on Pensions and
Retirement Research. Research associate
and board member, Penn Aging Research
Center. Research associate, National
Bureau of Economic Research.
Timothy J. Penny Trustee, since President and CEO of Southern None
58 1996 Minnesota Initiative 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.
Michael S. Scofield(3) Trustee, since Trustee of the Evergreen Funds from None
67 2010 1984 to 2010. Retired Attorney,
Law Offices of Michael S. Scofield and
former Director and Chairman, Branded
Media Corporation (multi-media branding
company).
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke None
70 & Daniels. General Counsel of the
Minneapolis Employees Retirement Fund
from 1984 to present.
OFFICERS
Position Held and
Length Principal Occupations During Past Other
Name and Age of Service (2) Five Years Directorships
- ----------------------- -------------------- --------------------------------------- ----------------
Karla M. Rabusch President, Executive Vice President of Wells Fargo None
51 since 2003 Bank, N.A. and President of Wells Fargo
Funds Management, LLC since 2003.
Senior Vice President and Chief
Administrative Officer of Wells Fargo
Funds Management, LLC from 2001 to
2003.
C. David Messman Secretary, since Senior Vice President and Secretary None
50 2000; of Wells Fargo Funds Management, LLC
Chief Legal since 2001. Vice President and Managing
Counsel, Senior Counsel of Wells Fargo Bank,
since 2003 N.A. since 1996.
Kasey Phillips(4) Treasurer, Senior Vice President of Evergreen
39 since 2009 Investment Management Company,
LLC since 2006 and currently the
Treasurer of the Evergreen Funds since
2005. Vice President and Assistant Vice
President of Evergreen Investment
Services, Inc. from 1999 to 2006.
David Berardi(5) Assistant Vice President of Evergreen Investment None
35 Treasurer, Management Company, LLC since 2008.
since 2009 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.
Wells Fargo Managed Account CoreBuilder Shares 19
Other information (Unaudited)
Position Held and
Length Principal Occupations During Past Other
Name and Age of Service (2) Five Years Directorships
- ----------------------- -------------------- --------------------------------------- ----------------
Jeremy DePalma(5) Assistant Senior Vice President of Evergreen None
36 Treasurer, Investment Management Company, LLC
since 2009 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 Chief Compliance Officer of Wells Fargo None
46 Compliance Funds Management, LLC since 2007. Chief
Officer, Compliance Officer of Parnassus
since 2007 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 July 9, 2010.
(4 ) Effective November 1, 2009.
(5.) Treasurer during the period from June 1, 2009 to October 31, 2009.
Assistant Treasurer effective November 1, 2009.
20 Wells Fargo Managed Account CoreBuilder Shares
Other Information (Unaudited)
BOARD CONSIDERATION OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:
WELLS FARGO MANAGED ACCOUNT COREBUILDER SHARES (SM) - SERIES M
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"), all of the members of which 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 meet in person to review and consider the continuation of any investment
advisory and sub-advisory agreements. In this regard, the Board reviewed and
re-approved: (i) an investment advisory agreement with Wells Fargo Funds
Management, LLC ("Funds Management") for the Wells Fargo Managed Account
CoreBuilder Shares (SM) - Series M and Wells Fargo Managed Account CoreBuilder
Shares (SM) - Series G (the "Funds"); and (ii) an investment sub-advisory
agreement with Wells Capital Management Incorporated ("Wells Capital
Management") for the Funds. The investment advisory agreements with Funds
Management and the investment sub-advisory agreements with Wells Capital
Management are collectively referred to as the "Advisory Agreements."
More specifically, at a meeting held on March 25-26, 2010 (the "Meeting"), the
Board considered the factors and reached the conclusions described below
relating to the selection of Funds Management and Wells Capital Management and
the continuation of the Advisory Agreements. Prior to the Meeting, the Trustees
conferred extensively among themselves and with representatives of Funds
Management about these matters. The Board also met throughout the year and
received information that was useful to them in considering the continuation of
the Advisory Agreements. The Independent Trustees were assisted in their
evaluation of the Advisory Agreements by independent legal counsel, from whom
they received separate legal advice and with whom they met separately from Funds
Management.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board received and considered various information regarding the nature,
extent and quality of services provided to the Funds by Funds Management and
Wells Capital Management under the Advisory Agreements. The Board also received
and considered information provided in response to a detailed set of requests
submitted by the Independent Trustees' independent legal counsel. The Board
received and considered, among other things, information about the background
and experience of senior management of Funds Management, and the qualifications,
backgrounds, tenures and responsibilities of the portfolio managers primarily
responsible for the day-to-day portfolio management of the Funds.
The Board evaluated the ability of Funds Management and Wells Capital
Management, based on their respective financial condition, resources, reputation
and other attributes, to attract and retain qualified investment professionals,
including research, advisory, and supervisory personnel. The Board further
considered the compliance programs and compliance records of Funds Management
and Wells Capital Management. In addition, the Board took into account the
administrative services provided to the Funds by Funds Management and its
affiliates.
In considering these matters, the Board considered not only the specific
information presented in connection with the Meeting, but also the knowledge
gained over the course of interacting with Funds Management and Wells Capital
Management about various topics, including Funds Management's oversight of
service providers. Based on the above factors, together with those referenced
below, the Board concluded that it was satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and Wells Capital Management.
FUND PERFORMANCE AND EXPENSES
The Board received and considered information regarding the "zero fee and
expense" structure of each Fund. Specifically, the Board noted that each Fund's
gross operating expense ratio and each of its various components, including
advisory fees, administration fees, custody fees, Rule 12b-1 fees, and other
fees, were zero. The Board also noted Funds Management's representations that
the Funds are special purpose mutual funds for use exclusively within Funds
Management's separately managed account ("SMA") advisory business and, as such,
Funds Management would assume and pay or reimburse all of the ordinary operating
expenses of the Funds under an Expense Assumption Agreement but excluding
portfolio transaction or other investment related costs, fees payable for
services provided by the Funds' securities lending agent, interest, taxes,
leverage expenses, and other expenses not incurred in the ordinary cost of the
Wells Fargo Managed Account CoreBuilder Shares 21
Other Information (Unaudited)
Funds' business. The Board further noted that Funds Management is paid a
negotiated fee by each SMA sponsor and that the fee level would be identical for
all sponsors of SMAs that invest in CoreBuilder Shares(SM) - Series M, and
identical for all sponsors of SMAs that invest in CoreBuilder Shares(SM) -
Series G.
In light of this unique fee and distribution structure, the Board does not
conduct a performance and fee review relative to a peer group or universe. The
Board concluded that the fee and distribution structure of the Funds supported
the re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUB-ADVISORY FEE RATES
The Board reviewed and considered that the contractual investment advisory fee
rate payable by the Funds to Funds Management for investment advisory services
(the "Advisory Agreement Rate") was zero, and also reviewed and considered that
each Fund's other fees would normally be zero, because of Funds Management's
commitment to assume and pay or reimburse all of the ordinary operating expenses
of the Funds under an Expense Assumption Agreement. The Board also reviewed and
considered the contractual investment sub-advisory fee rate payable by Funds
Management to Wells Capital Management for investment sub-advisory services (the
"Sub-Advisory Agreement Rate"), and that such fees are paid from the fees Funds
Management receives from SMA sponsors and not by the Fund.
The Board noted that the Advisory Agreement Rate for the Funds was consistent
with the zero fee structure, and was acceptable in light of the services covered
by the Advisory Agreements. The Board also reviewed and considered the
Sub-Advisory Agreement Rates and concluded that the Sub-Advisory Agreement Rates
were acceptable in light of the services covered by the Sub-Advisory Agreements.
PROFITABILITY
The Board received and considered a profitability analysis of Funds Management
and its affiliates, but did not consider separate profitability information with
respect to the Funds in light of their unique fee and distribution structure.
ECONOMIES OF SCALE
In light of the unique fee and distribution structure of the Funds, the Board
did not conduct an analysis of economies of scale in the context of reviewing
the Funds' Advisory Agreements.
INFORMATION ABOUT SERVICES AND FEES OFFERED 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 similarly situated
series of the Trust, and those offered by Wells Capital Management to other
clients. The Board concluded that the Advisory Agreement Rates and the
Sub-Advisory Agreement Rates were acceptable.
OTHER BENEFITS TO FUNDS MANAGEMENT AND WELLS CAPITAL MANAGEMENT
The Board received and considered information regarding potential "fall-out" or
ancillary benefits received by Funds Management and its affiliates, including
Wells Capital Management, as a result of their relationship with the Funds.
Ancillary benefits could include, among others, benefits directly attributable
to the relationship of Funds Management and Wells Capital Management with the
Funds and benefits potentially derived from an increase in Funds Management's
and Wells Capital Management's business as a result of their relationship with
the Funds (such as the ability to market to shareholders other financial
products offered by Funds Management and its affiliates, including Wells Capital
Management). The Board noted that Funds Management receives payments from the
SMA sponsors and that it has agreed to assume and pay or reimburse certain
operating expenses.
The Board has reviewed information about the policies of Wells Capital
Management in seeking the best execution of portfolio transactions, whether and
to what extent soft dollar credits are sought and how any such credits are
utilized, any benefits that may be realized by using an affiliated broker and
the controls applicable to brokerage allocation procedures. The Board has
reviewed information about Funds Management's and Wells Capital Management's
methods for allocating portfolio investment opportunities among the Funds and
other clients.
22 Wells Fargo Managed Account CoreBuilder Shares
Other Information (Unaudited)
OTHER FACTORS AND BROADER REVIEW
The Board also considered the markets for distribution of the Funds' shares,
including the multiple channels through which the Funds' shares are offered and
sold. The Board noted that the Funds are part of one of the few fund families
that have both direct-to-fund and intermediary distribution channels. As
discussed above, the Board reviews detailed materials received from Funds
Management and Wells Capital Management annually as part of the re-approval
process under Section 15(c) of the 1940 Act. The Board also reviews and assesses
information about the quality of the services that the Funds receive throughout
the year.
CONCLUSION
After considering the above-described factors and based on its deliberations and
its evaluation of the information described above, the Board concluded that
approval of the continuation of the Advisory Agreements for the Funds was in the
best interest of the Funds and their shareholders. Accordingly, the Board
unanimously approved the continuation of the Advisory Agreements for an
additional one-year period.
Wells Fargo Managed Account CoreBuilder Shares 23
List of Abbreviations
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depositary Receipt
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDO -- Collateralized Debt Obligation
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
CIFG -- CDC (Caisse des Depots et Consignations) IXIS
Financial Guarantee
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
ECFA -- Educational & Cultural Facilities Authority
EDFA -- Economic Development Finance Authority
ETET -- Eagle Tax-Exempt Trust
ETF -- Exchange-Traded Fund
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHAG -- Federal Housing Agency
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
FSA -- Farm Service Agency
GDR -- Global Depositary Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HCFR -- Healthcare Facilities Revenue
HEFA -- Health & Educational Facilities Authority
HEFAR -- Higher Education Facilities Authority Revenue
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
HUD -- Housing & Urban Development
IDA -- Industrial Development Authority
IDAG -- Industrial Development Agency
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Company
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MFMR -- Multi-Family Mortgage Revenue
MMD -- Municipal Market Data
MTN -- Medium Term Note
MUD -- Municipal Utility District
NATL-RE -- National Public Finance Guarantee Corporation
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PFFA -- Public Facilities Financing Authority
plc -- Public Limited Company
PSFG -- Public School Fund Guaranty
R&D -- Research & Development
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
SPDR -- Standard & Poor's Depositary Receipts
STIT -- Short-Term Investment Trust
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
XLCA -- XL Capital Assurance
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(WELLS FARGO ADVANTAGE FUNDS LOGO)
More information about WELLS FARGO ADVANTAGE FUNDS is available free upon
request. To obtain literature, please write, e-mail, visit the Funds' Web site,
or call:
WELLS FARGO ADVANTAGE FUNDS
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com
Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1- 800-222-8222
Retail Investment Professionals: 1- 888-877-9275
Institutional Investment Professionals: 1- 866-765-0778
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF WELLS FARGO ADVANTAGE FUNDS. IF THIS
REPORT IS USED FOR PROMOTIONAL PURPOSES, DISTRIBUTION OF THE REPORT MUST BE
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR A PROSPECTUS CONTAINING
MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-222-8222
OR VISIT THE FUNDS' WEB SITE AT www.wellsfargo.com/advantagefunds. PLEASE
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
INVESTMENT CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION ABOUT WELLS
FARGO ADVANTAGE FUNDS CAN BE FOUND IN THE CURRENT PROSPECTUS. READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
"Dow Jones" and "Dow Jones Target Date Indexes" are service marks of Dow Jones &
Company, Inc., and have been licensed for use for certain purposes by Global
Index Advisors, Inc., and Wells Fargo Funds Management, LLC. The Dow Jones
Target Date Indexes are based in part on the Barclays Capital Bond Indexes,
which are published by Barclays Capital Inc. The Wells Fargo Advantage Dow Jones
Target Date Funds, based on the Dow Jones Target Date Indexes, are not
sponsored, endorsed, sold or promoted by Dow Jones or Barclays Capital, and
neither Dow Jones nor Barclays Capital makes any representation regarding the
advisability of investing in such product(s) and/or about the quality, accuracy
and/or completeness of the Dow Jones Target Date Indexes or the Barclays Capital
Bond Indexes. IN NO EVENT SHALL DOW JONES, BARCLAYS CAPITAL OR ANY OF THEIR
LICENSORS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT OR
CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES.
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates of Wells Fargo & Company provide
subadvisory and other services for the Funds. The Funds are distributed by WELLS
FARGO FUNDS DISTRIBUTOR, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo &
Company.
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(GRAPHIC)
Printed on Recycled paper
(C) 2010 Wells Fargo Funds Management, LLC. All rights reserved.
124154 08-10
SCBM/SAR130 06-10
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: August 25, 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: August 25, 2010
By: _________________________
/s/ Kasey L. Phillips
Kasey L. Phillips
Treasurer
Date: August 25, 2010