Annual Report
March 31, 2017
Wells Fargo Small Cap Value Fund
Contents
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Letter to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
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Performance highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Fund expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Portfolio of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Financial statements
Statement of assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of changes in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
18
19
20
Notes to financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Report of independent registered public accounting firm . . . . . . . . . . . . . . . . .
31
Other information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
List of abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
The views expressed and any forward-looking statements are as of March 31, 2017, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds
Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or
results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing
circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking
statements.
NOT FDIC INSURED ▪ NO BANK GUARANTEE ▪ MAY LOSE VALUE
2
Wells Fargo Small Cap Value Fund
Letter to shareholders (unaudited)
Dear Shareholder:
As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from
that position after nearly 14 years, I am pleased to offer you this annual report for
the Wells Fargo Small Cap Value Fund for the 12-month period that ended
March 31, 2017. Despite heightened market volatility at times, global stocks
delivered double-digit results overall. U.S. and international stocks returned
17.17% and 13.13% for the 12-month period, respectively, as measured by the S&P
500 Index1 and the MSCI ACWI ex USA Index (Net)2; within fixed income, the
Bloomberg Barclays U.S. Aggregate Bond Index3 returned 0.44%.
Andrew Owen
President
Wells Fargo Funds
U.S. and international stocks
returned 17.17% and 13.13%
for the 12-month period,
respectively; within fixed
income, the Bloomberg
Barclays U.S. Aggregate Bond
Index3 returned 0.44%.
Worries over interest rates and the U.K.’s Brexit vote largely drove markets
during the second quarter of 2016.
U.S. stocks were in positive territory in April, plunged briefly in May on worries of a
possible June interest-rate increase, then rallied until early June. The first three
weeks of June brought heightened volatility, spurred largely by a disappointing
jobs report and uncertainty over whether the U.K. would remain in the European
Union (E.U.). The U.K.’s Brexit vote on June 23 shocked countries worldwide. Stock
markets fell as investors worried that the U.K.’s departure from the E.U. would slow
global growth and prolong the low-interest-rate environment. Following the
initial rout, however, U.S. stocks rose as investors seemed to decide that any
negative effects would be more localized and not create a serious risk for global
growth. Similarly, government bonds rallied immediately post-Brexit, and nonTreasury sectors rallied soon after as investors regained their appetite for risk. As a
result, most bond markets remained in a situation of ultralow yields and tight
credit spreads. Interestingly, U.S. bonds continued to be supported by demand
from both domestic and nontraditional foreign buyers looking for positive yield
since U.S. interest rates were the highest among developed-country bonds. Also
notable was the rebound in oil prices to nearly $50 per barrel in June, driven by a
lower rig count, unplanned supply outages, anticipated demand ahead of the
summer driving season, and a weaker dollar.
Globally, stocks delivered positive results in the third quarter of 2016;
bonds’ interest rates remained low.
Stocks’ upward trend continued into August and then lost some steam. Ever since
the Great Recession, markets worldwide have been supported to varying degrees by
accommodative policies from leading central banks, including the U.S. Federal
Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a
result, investors have watched closely for any signs that global central banks might
tighten their measures. In the U.S., early-September comments by several Fed
officials appeared to suggest a September interest-rate increase, which sent stock
and bond prices down. However, stocks surged following the Fed’s September 20
meeting on news that the Fed had decided to delay a rate increase to later in 2016.
In bond markets, interest rates rose during the quarter but remained at historically
1
2
3
The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index
with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.
The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalizationweighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. Source:
MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained
herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not
approved, reviewed, or produced by MSCI. You cannot invest directly in an index.
The Bloomberg Barclays U.S. Aggregate Bond Index (formerly known as Barclays U.S. Aggregate Bond Index) is a broad-based benchmark that
measures the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate
securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and
commercial mortgage-backed securities. You cannot invest directly in an index.
Letter to shareholders (unaudited)
low levels as a result of easy monetary policies, subdued global growth, and modest
inflation expectations. Yields did rise, however, after bottoming in early July,
because market participants felt that yields had overshot the real risks of the U.K.’s
Brexit vote and as economic activity strengthened.
During the fourth quarter of 2016, prospects for faster growth and higher
interest rates in the U.S. influenced markets.
Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid
concerns such as a likely interest-rate increase and uncertainty over the
approaching general election. However, following Donald Trump’s election as
president in early November, U.S. stocks began to rally. Investors appeared
optimistic that the new administration would usher in a series of progrowth
policies, and supportive economic news helped the rally carry through the
quarter. The buoyant environment sent interest rates higher as well. At its midDecember meeting, Fed officials raised their short-term target interest rate for the
first time in a year by a quarter percentage point to between 0.50% and 0.75%.
The fourth quarter also saw the implementation of the U.S. Securities and
Exchange Commission’s new rules for money market funds, which included
floating net asset values (NAVs) for institutional prime and municipal money
market funds as well as liquidity fees and redemption gates. In the year leading up
to money market fund reform implementation, nearly $1 trillion in assets moved
from these types of money market funds into government money market funds,
which continued to transact at a stable $1 NAV. Outside of the U.S., the prospects
for faster U.S. growth appeared to trigger some acceleration in Europe. The
improvement may be partly attributable to expectations for further strengthening
of the U.S. dollar, which in turn could improve demand for European goods in the
U.S. due to weakening of the euro relative to the dollar.
Globally, stocks delivered positive results and economies showed some
improvement in the first quarter of 2017.
Stocks rallied globally through the first quarter of 2017, supported by signs of
improvement in the U.S. and global economies. U.S. economic data released
during the quarter reflected a healthy economy. Hiring remained strong, and
business and consumer sentiment improved. Meanwhile, inflation inched up
during the quarter. Along with the pickup in inflation, investors appeared to shift
from a mindset of very gradual interest-rate increases by the Fed to an
anticipation of three or four increases in 2017. The first of these occurred in March;
Fed officials raised their short-term target rate by a quarter percentage point to
between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond
yields rose during the quarter. Meanwhile, longer-term Treasury yields were little
changed, leading to positive performance. Investment-grade and high-yield
bonds benefited from strong demand. Municipal bond returns were positive in
the quarter, helped by strong demand and constrained new-issue supply. Outside
of the U.S., stocks in emerging markets generally outperformed stocks in the U.S.
and international developed markets. Thus far in 2017, emerging markets overall
have benefited from both global economic growth and recent weakening in the
U.S. dollar. European stocks also outperformed the U.S. market, despite investors’
concern over uncertainties such as the potential impact of an upcoming election
in France; a contender for president of France, Marine Le Pen, favored exiting the
European Union, which could potentially destabilize or topple the organization.
Wells Fargo Small Cap Value Fund
3
4
Wells Fargo Small Cap Value Fund
Don’t let short-term uncertainty derail long-term investment goals.
Periods of uncertainty can present challenges, but experience has taught us that
maintaining long-term investment goals can be an effective way to plan for the
future. To help you create a sound strategy based on your personal goals and risk
tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide
range of asset classes and investment styles. Although diversification cannot
guarantee an investment profit or prevent losses, we believe it can be an effective
way to manage investment risk and potentially smooth out overall portfolio
performance. We encourage investors to know their investments and to
understand that appropriate levels of risk-taking may unlock opportunities.
Letter to shareholders (unaudited)
Although diversification cannot
guarantee an investment profit
or prevent losses, we believe it
can be an effective way to
manage investment risk and
potentially smooth out overall
portfolio performance.
Thank you for choosing to invest in Wells Fargo Funds. We appreciate your
confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
For further information about your Fund, contact your investment professional, visit our website at
wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.
This page is intentionally left blank.
6
Wells Fargo Small Cap Value Fund
Performance highlights (unaudited)
Investment objective
The Fund seeks long-term capital appreciation.
Manager
Wells Fargo Funds Management, LLC
Subadviser
Wells Capital Management Incorporated
Portfolio managers
Erik C. Astheimer
Michael Schneider, CFA®
Average annual total returns (%) as of March 31, 20171
Including sales charge
Excluding sales charge
Expense ratios2 (%)
Inception date
1 year
5 year
10 year
1 year
5 year
10 year
Gross
Net3
Class A (SMVAX)
11-30-2000
22.45
7.95
5.52
29.92
9.23
6.15
1.36
1.30
Class C (SMVCX)
11-30-2000
27.93
8.42
5.35
28.93
8.42
5.35
2.11
2.05
Class R6 (SMVRX)
6-28-2013
–
–
–
30.50
9.71
6.61
0.93
0.85
Administrator Class (SMVDX)
7-30-2010
–
–
–
30.22
9.45
6.39
1.28
1.10
Institutional Class (WFSVX)
7-31-2007
–
–
–
30.41
9.67
6.59
1.03
0.90
–
–
–
–
29.37
12.54
6.09
–
–
4
Russell 2000® Value Index
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or
the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less
than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the
performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website,
wellsfargofunds.com.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly
in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a
contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class, and Institutional Class shares are sold without a
front-end sales charge or contingent deferred sales charge.
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions.
Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. The use of derivatives
may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an
investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s
prospectus for additional information on these and other risks.
Please see footnotes on page 7.
Performance highlights (unaudited)
Wells Fargo Small Cap Value Fund
7
Growth of $10,000 investment as of March 31, 2017 5
$20,000
$18,066
$17,115
$15,000
$10,000
$5,000
$0
3-31-2007
3-31-2008
3-31-2009
3-31-2010
3-31-2011
3-31-2012
3-31-2013
3-31-2014
3-31-2015
3-31-2016
3-31-2017
Class A
Russell 2000® Value Index
1
2
3
4
5
6
7
Historical performance shown for Class R6 shares prior to their inception reflects the performance of Institutional Class shares and includes the higher
expenses applicable to Institutional Class shares. If these expenses had not been included, returns for Class R6 shares would be higher. Historical
performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares and has been
adjusted to reflect the higher expenses applicable to Administrator Class shares. Historical performance shown for Institutional Class shares prior to
their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class
shares. If these expenses had not been included, returns for Institutional Class shares would be higher.
Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.02% in acquired fund fees and expenses. The
expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which
do not include acquired fund fees and expenses.
The manager has contractually committed through July 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s
Total Annual Fund Operating Expenses After Fee Waivers at 1.28% for Class A, 2.03% for Class C, 0.83% for Class R6, 1.08% for Administrator Class, and
0.88% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the
approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary
expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is
the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectuses.
The Russell 2000® Value Index measures the performance of those Russell 2000 companies with lower price/book ratios and lower forecasted growth
values. You cannot invest directly in an index.
The chart compares the performance of Class A shares for the most recent ten years with the Russell 2000® Value Index. The chart assumes a
hypothetical investment of $10,000 in Class A shares and reflects all operating expenses.
The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the
Fund. Holdings are subject to change and may have changed since the date specified.
Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since
the date specified.
8
Wells Fargo Small Cap Value Fund
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
▪ The Fund (Class A, excluding sales charges) outperformed its benchmark, the Russell 2000® Value Index, for the 12-month
period that ended March 31, 2017.
▪ Strong stock selection in the consumer discretionary, energy, and real estate sectors drove the outperformance.
▪ Weakness in the information technology (IT) and materials sectors, particularly gold-mining companies, detracted from
performance.
Stocks performed well during the reporting period, as measured by the Russell 2000® Value Index. The end of 2016 was
especially strong for the market following the surprise election of Donald Trump as the next U.S. president. Stocks
responded to investors’ expectations for lower corporate tax rates, less regulation, greater economic growth, and a more
normalized interest-rate environment under a new administration. It remains to be seen what changes the new
administration is able to accomplish and what the impact of those changes ultimately may be. Any setbacks or delays
could disappoint investors and pressure stocks.
The Fund benefited from positive stock selection in the consumer discretionary, energy, and real estate sectors.
Strong stock selection in the consumer discretionary sector helped Fund performance. The Fund’s positions in Scientific
Games Corporation and Fox Factory Holding Corporation returned more than 151% and 82%, respectively. Scientific
Games, a casino operator, benefited from cost-cutting, which drove improved cash flow. Fox Factory, a manufacturer of
premium suspension products, was aided by strong growth in its bike and power vehicle segments and improved
margins. Our outlook for both companies remains positive.
The Fund’s energy stocks contributed to performance during the period. The Fund’s largest energy holding, InterOil
Corporation, increased 52%. In July 2016, Exxon Mobil Corporation announced the acquisition of InterOil for a fixed
payment of $45 per share, paid in Exxon Mobil shares, plus a contingent resource payment (CRP) that allows investors to
participate in any positive results from the company’s Elk-Antelope oil field. The transaction closed in February 2017, and
we retain the CRP instrument that allows participation in any cash-payment award based on the amount of gas present
following certification, which is set for mid-2017. We remain encouraged about the value of the CRP.
Within the real estate sector, strong stock selection aided Fund performance for the period. UMH Properties,
Incorporated, which owns manufactured-housing communities, returned 63%. As the manufactured-housing industry
has slowly recovered, UMH has increased the occupancy in its communities, which has driven improved margins and
profits. We believe the demand for low-cost housing may continue to increase, which could benefit UMH.
Weakness in the IT and materials sectors hindered the Fund’s performance.
The Fund’s holdings in the IT sector detracted from performance during the period. Cray Incorporated, a leader in
supercomputers, declined 48% for the period. In mid-2016, Cray lowered its full-year guidance due to a variety of issues
outside of the company’s immediate control; specifically, Cray was plagued by chip-availability issues for a third-party’s
semiconductor component and also was affected by an unexpected smoke event at one of its facilities. Due to the
component delay, Cray reported that its orders slowed at the end of 2016. The company’s supply-chain issue has been
rectified, and we remain constructive on the company and its potential to grow faster than the overall supercomputer
market.
Within the materials sector, gold-mining companies detracted from relative performance. Gold, which started the period
at roughly $1,233 an ounce, climbed above $1,350 an ounce during the summer of 2016. The move was driven by
negative government bond yields in many countries and a growing lack of confidence in the ability of global central
banks to jump-start economic growth. Gold began to decline in the second half of 2016 as investors sensed that the U.S.
Federal Reserve likely would increase interest rates. After the U.S. presidential election in November 2016, gold’s decline
accelerated as the U.S. dollar strengthened and U.S. stocks rose materially—especially small-cap stocks. Randgold
Resources Limited, one of the Fund’s largest holdings, declined 1%. Randgold, which has been a profitable gold producer,
has disciplined management, a strong balance sheet, and high-quality mining assets. The company continues to be a
core holding. We hold positions in gold miners partly because we believe they improve the Fund’s diversification given
their lower correlation to the broad stock market.
Please see footnotes on page 7.
Performance highlights (unaudited)
Wells Fargo Small Cap Value Fund
9
We believe it is prudent to remain cautious.
We are cautious regarding the stock markets after such strong performance during the 12-month period. Corporate profit
margins remain high, and earnings multiples are not cheap. The supply of new companies we find potentially attractive
has become smaller. The market may already have discounted a number of the potentially positive changes that might
be implemented by the new U.S. administration, including lower corporate taxes and less regulation. Any delays or
setbacks regarding implementation could disappoint investors and cause stocks to sell off. In addition, higher interest
rates, which the stock markets have been viewing as favorable, could negatively affect stocks at some point.
Given the current environment, we believe it is prudent to remain cautious. The Fund holds a reasonable cash position.
We believe this position, along with the Fund’s exposure to gold miners, may provide some stability for the Fund in times
of potential volatility in the broader stock market. Although the Fund is somewhat defensively positioned, we remain
poised to deploy capital as opportunities present themselves.
Ten largest holdings (%) as of March 31, 2017 6
Sector distribution as of March 31, 2017 7
Cavco Industries Incorporated
4.84
Randgold Resources Limited ADR
4.20
Coherent Incorporated
4.13
Cray Incorporated
2.36
OSI Systems Incorporated
2.29
Argo Group International Holdings Limited
2.27
Enova International Incorporated
2.23
ACCO Brands Corporation
2.02
Cross Country Healthcare Incorporated
1.95
Cincinnati Bell Incorporated
1.82
Please see footnotes on page 7.
Telecommunication
Services (2%)
Real Estate (2%)
Materials (11%)
Other (1%)
Consumer
Discretionary (21%)
Energy (4%)
Information
Technology (19%)
Financials (22%)
Industrials (8%)
Health Care (10%)
10
Wells Fargo Small Cap Value Fund
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on
purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including
management fees, distribution (12b-1) and/or shareholder servicing 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 period from October 1, 2016 to March 31, 2017.
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) and contingent deferred sales charges. 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.
1
Beginning
account value
10-1-2016
Ending
account value
3-31-2017
Expenses
paid during
the period¹
Class A
Actual
Hypothetical (5% return before expenses)
$1,000.00
$1,000.00
$1,124.27
$1,018.55
$ 6.78
$ 6.44
1.28%
1.28%
Class C
Actual
Hypothetical (5% return before expenses)
$1,000.00
$1,000.00
$1,120.10
$1,014.81
$10.73
$10.20
2.03%
2.03%
Class R6
Actual
Hypothetical (5% return before expenses)
$1,000.00
$1,000.00
$1,127.09
$1,020.79
$ 4.40
$ 4.18
0.83%
0.83%
Administrator Class
Actual
Hypothetical (5% return before expenses)
$1,000.00
$1,000.00
$1,125.70
$1,019.55
$ 5.72
$ 5.44
1.08%
1.08%
Institutional Class
Actual
Hypothetical (5% return before expenses)
$1,000.00
$1,000.00
$1,126.72
$1,020.54
$ 4.67
$ 4.43
0.88%
0.88%
Annualized net
expense ratio
Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the
number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
Portfolio of investments—March 31, 2017
Security name
Wells Fargo Small Cap Value Fund
Shares
11
Value
Common Stocks: 90.65%
Consumer Discretionary: 18.78%
Auto Components: 1.33%
Fox Factory Holding Corporation †
Gentex Corporation
254,100
310,900
$
7,292,670
6,631,497
13,924,167
Hotels, Restaurants & Leisure: 6.86%
Bloomin’ Brands Incorporated
Century Casinos Incorporated †(l)
Denny’s Corporation †
Peak Resorts Incorporated
Scientific Games Corporation Class A †
The Wendy’s Company
692,800
1,762,300
1,075,300
420,500
467,200
1,350,700
13,668,944
13,322,988
13,301,461
2,375,825
11,049,280
18,383,027
72,101,525
Household Durables: 8.13%
Cavco Industries Incorporated †
KB Home Incorporated
Nobility Homes Incorporated
Skyline Corporation †(l)
Taylor Morrison Home Corporation Class A †
The New Home Company Incorporated †
437,200
465,300
96,700
815,200
374,200
780,000
50,890,080
9,250,164
1,523,025
7,679,184
7,977,944
8,158,800
85,479,197
Media: 1.21%
Cinemark Holdings Incorporated
Entravision Communications Corporation Class A
MSG Networks Incorporated Class A †
169,300
736,900
27,400
7,506,762
4,568,780
639,790
12,715,332
Multiline Retail: 0.66%
Fred’s Incorporated Class A
527,800
6,914,180
Textiles, Apparel & Luxury Goods: 0.59%
G-III Apparel Group Limited †
282,100
6,175,169
772,000
1,156,400
166,600
6,253,200
2,023,700
1,995,868
Energy: 4.11%
Energy Equipment & Services: 0.98%
Newpark Resources Incorporated †
Parker Drilling Company †
PHI Incorporated (non-voting) †
10,272,768
Oil, Gas & Consumable Fuels: 3.13%
Exxon Mobil Corporation
InterOil Corporation †(a)
Navigator Holdings Limited †
The accompanying notes are an integral part of these financial statements.
21,683
1,283,100
164,400
1,778,223
4,311,216
2,260,500
12
Wells Fargo Small Cap Value Fund
Security name
Oil, Gas & Consumable Fuels (continued)
Oasis Petroleum Incorporated †
Range Resources Corporation
Sanchez Energy Corporation †
Trilogy Energy Corporation †(a)
Portfolio of investments—March 31, 2017
Shares
365,900
286,300
760,600
1,032,600
Value
$
5,217,734
8,331,330
7,256,124
3,766,016
32,921,143
Financials: 20.35%
Banks: 10.46%
Ameris Bancorp
BankUnited Incorporated
CenterState Banks Incorporated
First Horizon National Corporation
Hanmi Financial Corporation
Hilltop Holdings Incorporated
Hope Bancorp Incorporated
IBERIABANK Corporation
LegacyTexas Financial Group
Pacific Premier Bancorp Incorporated †
Park Sterling Corporation
Sterling BanCorp
The Bancorp Incorporated †
Valley National Bancorp
183,000
154,800
665,200
594,200
129,900
306,600
766,900
183,700
72,800
31,800
408,000
167,400
1,693,200
345,300
8,436,300
5,775,588
17,228,680
10,992,700
3,994,425
8,422,302
14,701,473
14,530,670
2,904,720
1,225,890
5,022,480
3,967,380
8,635,320
4,074,540
109,912,468
Capital Markets: 0.36%
Medley Management Incorporated Class A (l)
454,000
3,768,200
1,579,500
23,455,575
352,200
102,000
124,900
165,100
688,000
400,200
148,600
23,879,160
729,300
168,615
7,076,186
16,346,880
6,403,200
2,139,840
Consumer Finance: 2.23%
Enova International Incorporated †
Insurance: 5.40%
Argo Group International Holdings Limited
Conifer Holdings Incorporated †
First Acceptance Corporation †
James River Group Holdings Limited
National General Holdings Corporation
OneBeacon Insurance Group Limited Class A
State National Companies Incorporated
56,743,181
Mortgage REITs: 1.02%
Redwood Trust Incorporated
647,900
10,761,619
Thrifts & Mortgage Finance: 0.88%
Essent Group Limited †
Northwest Bancshares Incorporated
84,100
366,000
3,041,897
6,163,440
9,205,337
The accompanying notes are an integral part of these financial statements.
Portfolio of investments—March 31, 2017
Security name
Wells Fargo Small Cap Value Fund
Shares
13
Value
Health Care: 9.14%
Health Care Equipment & Supplies: 2.66%
Allied Healthcare Products Incorporated †
Cerus Corporation †
Hologic Incorporated †
OraSure Technologies Incorporated †
16,100
819,800
190,500
1,253,500
$
31,073
3,648,110
8,105,775
16,207,755
27,992,713
Health Care Providers & Services: 3.69%
Air Methods Corporation †
Cross Country Healthcare Incorporated †
Tivity Health Incorporated †
134,400
1,425,400
431,800
5,779,200
20,468,744
12,565,380
38,813,324
Health Care Technology: 1.70%
Allscripts Healthcare Solutions Incorporated †
Omnicell Incorporated †
415,900
308,600
5,273,612
12,544,590
17,818,202
Life Sciences Tools & Services: 0.51%
PAREXEL International Corporation †
Pharmaceuticals: 0.58%
Akorn Incorporated †
Prestige Brands Holdings Incorporated †
84,800
5,351,728
164,100
39,100
3,951,528
2,172,396
6,123,924
Industrials: 7.45%
Building Products: 0.45%
CSW Industrials Incorporated †
Commercial Services & Supplies: 2.86%
ABM Industries Incorporated
ACCO Brands Corporation †
Healthcare Services Group Incorporated
SP Plus Corporation †
129,100
4,737,970
2,700
1,614,600
146,300
72,000
117,720
21,231,990
6,304,067
2,430,000
30,083,777
Construction & Engineering: 1.41%
IES Holdings Incorporated †
Tutor Perini Corporation †
214,700
343,600
3,886,070
10,926,480
14,812,550
Electrical Equipment: 0.36%
Babcock & Wilcox Enterprises Incorporated †
405,500
3,787,370
Machinery: 1.22%
Actuant Corporation Class A
Freightcar America Incorporated
Mueller Water Products Incorporated Class A
130,500
420,700
344,300
3,438,675
5,271,371
4,069,626
12,779,672
The accompanying notes are an integral part of these financial statements.
14
Wells Fargo Small Cap Value Fund
Security name
Professional Services: 0.60%
Hill International Incorporated †
Trading Companies & Distributors: 0.55%
Applied Industrial Technologies Incorporated
Portfolio of investments—March 31, 2017
Shares
1,532,700
Value
$
6,360,705
93,200
5,764,420
236,900
1,566,100
1,515,500
2,956,512
9,318,295
3,495,649
Information Technology: 16.99%
Communications Equipment: 1.50%
Brocade Communications Systems Incorporated
Harmonic Incorporated †
Sandvine Corporation (a)
15,770,456
Electronic Equipment, Instruments & Components: 7.87%
Cognex Corporation
Coherent Incorporated †
Fitbit Incorporated Class A †
OSI Systems Incorporated †
Zebra Technologies Corporation Class A †
82,500
210,900
377,500
329,900
67,400
6,925,875
43,369,476
2,234,800
24,079,401
6,150,250
82,759,802
Internet Software & Services: 0.87%
Gogo Incorporated †
834,100
9,175,100
IT Services: 0.40%
TeleTech Holdings Incorporated
142,100
4,206,160
Semiconductors & Semiconductor Equipment: 0.97%
Kulicke & Soffa Industries Incorporated †
501,400
10,188,448
Software: 1.14%
Synchronoss Technologies Incorporated †
490,800
11,975,520
1,132,200
377,100
9,356,699
24,795,180
11,576,970
8,140,328
Technology Hardware, Storage & Peripherals: 4.24%
Cray Incorporated †
Diebold Nixdorf Incorporated
Quantum Corporation †
44,512,478
Materials: 9.91%
Chemicals: 0.21%
Calgon Carbon Corporation
154,736
2,259,146
Containers & Packaging: 0.28%
Intertape Polymer Group Incorporated (a)
169,100
2,960,801
176,700
101,100
1,861,600
7,499,148
3,771,030
4,765,696
Metals & Mining: 9.06%
Agnico-Eagle Mines Limited-U.S. Exchange Traded Shares
Carpenter Technology Corporation
Nevsun Resources Limited
The accompanying notes are an integral part of these financial statements.
Portfolio of investments—March 31, 2017
Wells Fargo Small Cap Value Fund
Security name
Shares
Metals & Mining (continued)
NovaGold Resources Incorporated †
Randgold Resources Limited ADR
Royal Gold Incorporated
Sandstorm Gold Limited †
Silver Standard Resources Incorporated †
Tahoe Resources Incorporated
1,306,400
505,800
178,600
1,789,500
377,700
558,800
15
Value
$
6,362,168
44,146,224
12,510,930
7,641,165
4,007,397
4,487,164
95,190,922
Paper & Forest Products: 0.36%
Deltic Timber Corporation
48,400
3,781,008
153,800
980,700
7,028,660
14,916,447
Real Estate: 2.09%
Equity REITs: 2.09%
Potlatch Corporation
UMH Properties Incorporated
21,945,107
Telecommunication Services: 1.83%
Diversified Telecommunication Services: 1.83%
Cincinnati Bell Incorporated †
1,083,500
Total Common Stocks (Cost $593,351,760)
19,177,950
952,679,114
Exchange-Traded Funds: 1.19%
SPDR S&P Regional Banking ETF
VanEck Vectors Gold Miners ETF
VanEck Vectors Junior Gold Miners ETF
42,387
272,851
109,283
Total Exchange-Traded Funds (Cost $11,146,730)
2,314,754
6,223,732
3,932,002
12,470,488
Expiration date
Warrants: 0.00%
Health Care: 0.00%
Health Care Equipment & Supplies: 0.00%
EnteroMedics Incorporated †(a)
EnteroMedics Incorporated †(a)(i)
3-27-2017
2-27-2018
270,908
48,280
Total Warrants (Cost $0)
0
58
58
Yield
Short-Term Investments: 8.15%
Investment Companies: 8.15%
Wells Fargo Government Money Market Fund Select Class (l)(u)
0.63%
Total Short-Term Investments (Cost $85,665,191)
Total investments in securities (Cost $690,163,681) *
Other assets and liabilities, net
Total net assets
85,665,191
85,665,191
85,665,191
99.99%
0.01
1,050,814,851
82,304
100.00%
$1,050,897,155
The accompanying notes are an integral part of these financial statements.
16
Wells Fargo Small Cap Value Fund
†
(l)
(a)
(i)
(u)
*
Non-income-earning security
The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.
The security is fair valued in accordance with procedures approved by the Board of Trustees.
Illiquid security for which the designation as illiquid is unaudited.
The rate represents the 7-day annualized yield at period end.
Cost for federal income tax purposes is $697,451,670 and unrealized gains (losses) consists of:
Gross unrealized gains
$402,200,173
Gross unrealized losses
(48,836,992)
Net unrealized gains
Portfolio of investments—March 31, 2017
$353,363,181
The accompanying notes are an integral part of these financial statements.
Statement of assets and liabilities—March 31, 2017
Wells Fargo Small Cap Value Fund
17
Assets
Investments
In unaffiliated securities, at value (cost $582,353,498) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In affiliated securities, at value (cost $107,810,183) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
940,379,288
110,435,563
Total investments, at value (cost $690,163,681) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency, at value (cost $39) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivable for investments sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivable for Fund shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivable for dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,050,814,851
39
2,193,120
1,032,910
836,367
144,349
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,055,021,636
Liabilities
Payable for investments purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payable for Fund shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management fee payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution fee payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administration fees payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholder report expenses payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
935,104
1,758,200
732,713
24,529
153,515
295,123
225,297
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,124,481
Total net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,050,897,155
NET ASSETS CONSIST OF
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated net investment loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated net realized gains on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gains on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
561,387,617
(2,079,153)
130,937,521
360,651,170
$1,050,897,155
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding – Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per share – Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum offering price per share – Class A2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets – Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding – Class C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per share – Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets – Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding – Class R61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per share – Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets – Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding – Administrator Class1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per share – Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets – Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding – Institutional Class1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per share – Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
$
$
1
The Fund has an unlimited number of authorized shares.
2
Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
494,606,690
22,810,996
$21.68
$23.00
35,469,642
2,128,166
$16.67
90,809,254
3,960,628
$22.93
12,993,525
569,845
$22.80
417,018,044
18,207,581
$22.90
18
Wells Fargo Small Cap Value Fund
Statement of operations—year ended March 31, 2017
Investment income
Dividends (net of foreign withholding taxes of $43,508) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from affiliated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
7,572,781
305,248
7,878,029
Expenses
Management fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administration fees
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholder servicing fees
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution fee
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Custody and accounting fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Registration fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholder report expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trustees’ fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,186,269
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Fee waivers and/or expense reimbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,635,892
(668,856)
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,967,036
Net investment loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3,089,007)
1,028,670
75,675
27,871
24,173
442,242
1,224,607
90,089
46,278
270,267
50,337
58,070
55,630
13,039
21,796
20,879
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Affiliated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
169,871,403
8,601,835
Net realized gains on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
178,473,238
Net change in unrealized gains (losses) on:
Unaffiliated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Affiliated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
98,397,457
(22,090,793)
Net change in unrealized gains (losses) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76,306,664
Net realized and unrealized gains (losses) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
254,779,902
Net increase in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$251,690,895
The accompanying notes are an integral part of these financial statements.
Statement of changes in net assets
Wells Fargo Small Cap Value Fund
Year ended
March 31, 2017
Year ended
March 31, 2016
$
$
19
Operations
Net investment loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized gains on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized gains (losses) on investments . . . . . . . . . . . . . . . . . . . . . . . . . .
Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . .
(3,089,007)
178,473,238
76,306,664
(3,007,195)
176,694,661
(222,903,179)
251,690,895
(49,215,713)
Net realized gains
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(56,388,139)
01
(5,270,387)
(10,487,806)
(2,045,288)
(37,253,131)
(147,582,801)
(11,299)
(12,940,580)
(26,184,650)
(7,973,394)
(84,638,041)
Total distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(111,444,751)
(279,330,765)
Distributions to shareholders from
Capital share transactions
Proceeds from shares sold
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares
Shares
1,740,528
191,902
424,030
130,653
4,669,898
N/A
35,433,223
3,019,730
9,098,907
2,811,213
101,916,638
N/A
14,405,645
213,694
4,913,663
246,541
1,822,908
341,1792
371,383,963
3,522,236
136,781,653
5,884,855
45,991,897
9,252,4442
152,279,711
Reinvestment of distributions
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payment for shares redeemed
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,776,179
01
292,458
502,696
87,246
1,730,984
55,114,701
01
4,514,956
10,487,806
1,799,155
36,212,221
(7,484,677)
(285)1
(803,103)
(1,679,233)
(1,056,888)
(2,762,181)
N/A
572,817,048
8,140,152
791
767,463
1,410,811
392,943
4,322,403
144,569,098
11,299
10,936,351
26,184,650
7,277,303
80,180,580
108,128,839
269,159,281
(152,570,289) (9,636,099)
(4,290)1
(7,052)
(12,684,211) (2,155,888)
(36,127,102) (3,471,014)
(22,334,104) (2,015,328)
(58,313,031) (27,696,737)
N/A (17,354,006)2
(207,634,531)
(145,392)
(45,177,913)
(92,765,963)
(51,849,956)
(767,867,077)
(466,375,638)2
(282,033,027)
Net asset value of shares issued in acquisition
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrator Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,339,168
219,630
141,240
172,399
45,638,463
3,343,096
2,888,953
3,537,176
(1,631,816,470)
0
0
0
0
0
0
0
0
55,407,688
0
Net increase (decrease) in net assets resulting from capital share transactions . . . . . . . .
33,783,211
(789,840,141)
Total increase (decrease) in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
174,029,355
(1,118,386,619)
Net assets
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
876,867,800
1,995,254,419
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,050,897,155
$ 876,867,800
Accumulated net investment loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
1
2
(2,079,153)
(2,315,780)
For the period from April 1, 2016 to June 6, 2016. Effective June 7, 2016, Class B shares of the Fund are no longer offered to shareholders.
For the period from April 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to
Class A shares and are no longer offered by the Fund.
The accompanying notes are an integral part of these financial statements.
20
Wells Fargo Small Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended March 31
CLASS A
2017
2016
Net asset value, beginning of period
$18.84
$27.51
Year ended October 31
2015
$35.74
2
20141
2013
2012
$36.33
$32.87
$29.56
2
Net investment income (loss)
Net realized and unrealized gains (losses) on investments
(0.11)
5.45
(0.06)
(1.19)
0.01
(2.55)
0.18
2.71
0.23
4.68
0.19
3.39
Total from investment operations
5.34
(1.25)
(2.54)
2.89
4.91
3.58
0.00
(2.50)
0.00
(7.42)
(0.13)
(5.56)
(0.11)
(3.37)
(0.24)
(1.21)
(0.12)
(0.15)
(2.50)
(7.42)
(5.69)
(3.48)
(1.45)
(0.27)
$21.68
$18.84
$27.51
$35.74
$36.33
$32.87
Distributions to shareholders from
Net investment income
Net realized gains
Total distributions to shareholders
Net asset value, end of period
Total return
3
29.92%
(2.90)%
(7.29)%
8.87%
15.67%
12.22%
1.32%
1.28%
(0.48)%
1.36%
1.28%
(0.27)%
1.35%
1.29%
0.02%
1.33%
1.30%
1.26%
1.33%
1.30%
0.72%
1.34%
1.30%
0.61%
Ratios to average net assets (annualized)
Gross expenses
Net expenses
Net investment income (loss)
Supplemental data
Portfolio turnover rate
Net assets, end of period (000s omitted)
1
2
3
31%
16%
9%
7%
18%
16%
$494,607
$441,679
$289,669
$443,671
$482,677
$603,622
For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.
Calculated based upon average shares outstanding
Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of these financial statements.
Financial highlights
Wells Fargo Small Cap Value Fund
21
(For a share outstanding throughout each period)
Year ended March 31
Year ended October 31
CLASS C
2017
2016
2015
20141
2013
2012
Net asset value, beginning of period
$15.09
$23.80
$31.89
$32.77
$29.82
$26.92
Net investment income (loss)
Net realized and unrealized gains (losses) on investments
(0.20)2
4.28
(0.24)2
(1.05)
(0.20)2
(2.27)
0.072
2.42
(0.02)2
4.23
(0.04)2
3.09
Total from investment operations
4.08
(1.29)
(2.47)
2.49
4.21
3.05
0.00
(2.50)
0.00
(7.42)
(0.06)
(5.56)
0.00
(3.37)
(0.05)
(1.21)
0.00
(0.15)
(2.50)
(7.42)
(5.62)
(3.37)
(1.26)
(0.15)
$16.67
$15.09
$23.80
$31.89
$32.77
$29.82
Distributions to shareholders from
Net investment income
Net realized gains
Total distributions to shareholders
Net asset value, end of period
Total return
3
28.93%
(3.58)%
(8.00)%
8.53%
14.80%
11.38%
2.07%
2.03%
(1.23)%
2.11%
2.03%
(1.18)%
2.10%
2.04%
(0.70)%
2.08%
2.05%
0.52%
2.08%
2.05%
(0.06)%
2.09%
2.05%
(0.14)%
Ratios to average net assets (annualized)
Gross expenses
Net expenses
Net investment income (loss)
Supplemental data
Portfolio turnover rate
Net assets, end of period (000s omitted)
1
2
3
31%
16%
9%
7%
18%
16%
$35,470
$33,601
$80,969
$105,309
$105,491
$102,663
For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.
Calculated based upon average shares outstanding
Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of these financial statements.
22
Wells Fargo Small Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended March 31
CLASS R6
2017
Net asset value, beginning of period
$19.72
2016
2015
$28.29
3
$36.52
20141
Year ended
October 31, 20132
$37.13
$33.69
3
3
Net investment income (loss)
Net realized and unrealized gains (losses) on investments
(0.01)
5.72
0.03
(1.18)
0.23
(2.69)
0.35
2.67
0.073
3.37
Total from investment operations
5.71
(1.15)
(2.46)
3.02
3.44
0.00
(2.50)
0.00
(7.42)
(0.21)
(5.56)
(0.26)
(3.37)
0.00
0.00
(2.50)
(7.42)
(5.77)
(3.63)
0.00
$22.93
$19.72
$28.29
$36.52
$37.13
Distributions to shareholders from
Net investment income
Net realized gains
Total distributions to shareholders
Net asset value, end of period
Total return
4
30.50%
(2.43)%
(6.90)%
9.07%
10.21%
0.92%
0.83%
0.12%
0.87%
0.83%
0.72%
0.85%
0.85%
2.82%
0.85%
0.85%
0.60%
31%
16%
9%
$90,809
$92,929
$52,613
7%
$398
18%
$28
Ratios to average net assets (annualized)
Gross expenses
Net expenses
Net investment income (loss)
0.89%
0.83%
(0.03)%
Supplemental data
Portfolio turnover rate
Net assets, end of period (000s omitted)
1
For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.
2
For the period from June 28, 2013 (commencement of class operations) to October 31, 2013.
3
Calculated based upon average shares outstanding
4
Returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of these financial statements.
Financial highlights
Wells Fargo Small Cap Value Fund
23
(For a share outstanding throughout each period)
Year ended March 31
ADMINISTRATOR CLASS
2017
Net asset value, beginning of period
$19.66
2016
2015
$28.30
2
$36.40
2
Year ended October 31
20141
2013
2012
$36.98
$33.45
$30.12
2
Net investment income (loss)
Net realized and unrealized gains (losses) on investments
(0.07)
5.71
(0.06)
(1.16)
0.01
(2.55)
0.21
2.77
0.31
4.75
0.252
3.44
Total from investment operations
5.64
(1.22)
(2.54)
2.98
5.06
3.69
0.00
(2.50)
0.00
(7.42)
0.00
(5.56)
(0.19)
(3.37)
(0.32)
(1.21)
(0.21)
(0.15)
(2.50)
(7.42)
(5.56)
(3.56)
(1.53)
(0.36)
$22.80
$19.66
$28.30
$36.40
$36.98
$33.45
Distributions to shareholders from
Net investment income
Net realized gains
Total distributions to shareholders
Net asset value, end of period
Total return
3
30.22%
(2.70)%
(7.16)%
8.97%
15.92%
12.42%
1.24%
1.08%
(0.31)%
1.25%
1.08%
(0.24)%
1.19%
1.09%
0.03%
1.17%
1.10%
1.48%
1.17%
1.10%
0.87%
1.17%
1.10%
0.80%
Ratios to average net assets (annualized)
Gross expenses
Net expenses
Net investment income (loss)
Supplemental data
Portfolio turnover rate
Net assets, end of period (000s omitted)
1
2
3
31%
16%
9%
7%
18%
16%
$12,994
$24,927
$74,820
$711,869
$666,812
$543,683
For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.
Calculated based upon average shares outstanding
Returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of these financial statements.
24
Wells Fargo Small Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended March 31
INSTITUTIONAL CLASS
2017
Net asset value, beginning of period
$19.71
2016
$28.29
2
Year ended October 31
20141
2015
$36.53
2
$37.12
2
2013
2012
$33.56
$30.21
2
Net investment income (loss)
Net realized and unrealized gains (losses) on investments
(0.01)
5.70
(0.01)
(1.15)
0.17
(2.65)
0.26
2.76
0.38
4.76
0.34
3.42
Total from investment operations
5.69
(1.16)
(2.48)
3.02
5.14
3.76
0.00
(2.50)
0.00
(7.42)
(0.20)
(5.56)
(0.24)
(3.37)
(0.37)
(1.21)
(0.26)
(0.15)
(2.50)
(7.42)
(5.76)
(3.61)
(1.58)
(0.41)
$22.90
$19.71
$28.29
$36.53
$37.12
$33.56
Distributions to shareholders from
Net investment income
Net realized gains
Total distributions to shareholders
Net asset value, end of period
Total return
3
30.41%
(2.46)%
(6.95)%
9.05%
16.15%
12.68%
0.99%
0.88%
(0.06)%
0.99%
0.88%
(0.03)%
0.92%
0.89%
0.52%
0.90%
0.90%
1.66%
0.90%
0.90%
1.08%
0.91%
0.90%
1.01%
Ratios to average net assets (annualized)
Gross expenses
Net expenses
Net investment income (loss)
Supplemental data
Portfolio turnover rate
Net assets, end of period (000s omitted)
1
2
3
31%
16%
9%
7%
18%
16%
$417,018
$283,728
$1,017,115
$984,881
$1,081,869
$1,143,730
For the five months ended March 31, 2014. The Fund changed its fiscal year end from October 31 to March 31, effective March 31, 2014.
Calculated based upon average shares outstanding
Returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of these financial statements.
Notes to financial statements
Wells Fargo Small Cap Value Fund
25
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end
management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”).
As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards
Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. These
financial statements report on the Wells Fargo Small Cap Value Fund (the “Fund”) which is a diversified series of the Trust.
Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free
conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class
shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.
Effective June 7, 2016, Class B shares of the Fund are no longer offered. Information for Class B shares reflected in the
financial statements represents activity through June 6, 2016.
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 which require 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.
Securities valuation
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange
(generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected
circumstances.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if
none, the last sales price. If no sale occurs on the principal exchange or market that day, the prior day’s price will be
deemed “stale” and a fair value price will be determined in accordance with the Fund’s Valuation Procedures.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an
independent foreign currency pricing source at a time each business day specified by the Management Valuation Team
of Wells Fargo Funds Management, LLC (“Funds Management”).
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and
therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign
securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to
materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the
Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets
after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2
and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market
activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or
lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2017, such fair
value pricing was not used in pricing foreign securities.
Investments in registered open-end investment companies 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
in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the
Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the
Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless
the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to
make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a
quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the
Management Valuation Team which may include items for ratification.
Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate
market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair
valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant
changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange
26
Wells Fargo Small Cap Value Fund
Notes to financial statements
or by an independent pricing service. Valuations received from an independent pricing service or independent brokerdealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other
independent pricing services in addition to the review of prices by the manager and/or subadviser. Unobservable inputs
used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized
by market participants in valuing the investment, knowledge about the issuer and the current market environment.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated
in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source
at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income
and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign
exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign
withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in
securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of
securities and the changes in net assets resulting from changes in market prices of securities are not separately
presented. Such changes are included in net realized and unrealized gains or losses from investments.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified
cost.
Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are
recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net
of foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend
date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally
accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of
distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the
Fund’s fiscal year end may be categorized as a tax return of capital.
Federal and other taxes
The Fund intends 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. Management has analyzed the
Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there
are any uncertain tax positions that require recognition of a tax liability.
Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains
available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally
accepted accounting principles require that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values
per share. The primary permanent differences causing such reclassifications are due to passive foreign investment
companies and net operating losses. At March 31, 2017, as a result of permanent book-to-tax differences, the following
reclassification adjustments were made on the Statement of Assets and Liabilities:
Accumulated net
investment loss
Accumulated net
realized gains
on investments
$3,325,634
$(3,325,634)
Notes to financial statements
Wells Fargo Small Cap Value Fund
27
Class allocations
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder
servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income,
common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares
based on the relative proportion of net assets of each class.
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 securities
▪ Level 2 – other significant observable inputs (including quoted prices for similar securities, 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 investments in securities are not necessarily an indication of the risk
associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2017:
Quoted prices
(Level 1)
Other significant
observable inputs
(Level 2)
Significant
unobservable inputs
(Level 3)
Total
Assets
Investments in:
Common stocks
Consumer discretionary
Energy
Financials
Health care
Industrials
Information technology
Materials
Real estate
Telecommunication services
Exchange-traded funds
$
195,786,545
35,116,679
213,846,380
96,099,891
78,326,464
175,092,315
101,231,076
21,945,107
19,177,950
$ 1,523,025
3,766,016
0
0
0
3,495,649
2,960,801
0
0
$
0
4,311,216
0
0
0
0
0
0
0
$
197,309,570
43,193,911
213,846,380
96,099,891
78,326,464
178,587,964
104,191,877
21,945,107
19,177,950
12,470,488
0
0
12,470,488
0
58
0
58
85,665,191
0
0
85,665,191
$1,034,758,086
$11,745,549
$4,311,216
$1,050,814,851
Warrants
Health care
Short-term investments
Investment companies
Total assets
The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At
March 31, 2017, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.
4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of
the Fund and provides advisory and fund-level administrative services under an investment management agreement.
28
Wells Fargo Small Cap Value Fund
Notes to financial statements
Under the investment management agreement, Funds Management is responsible for, among other services,
implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level
administrative services in connection with the Fund’s operations, and providing any other fund-level administrative
services reasonably necessary for the operation of the Fund. As compensation for its services under the investment
management agreement, Funds Management is entitled to receive an annual management fee starting at 0.85% and
declining to 0.71% as the average daily net assets of the Fund increase. For the year ended March 31, 2017, the
management fee was equivalent to an annual rate of 0.84% of the Fund’s average daily net assets.
Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee
for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds
Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to
receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net
assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the
Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus
account servicers and record-keepers. As compensation for its services under the class-level administration agreement,
Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as
follows:
Class-level
administration fee
Class A, Class B, Class C
0.21%
Class R6
0.03
Administrator Class, Institutional Class
0.13
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent
necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of
expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class
specific expenses. Funds Management has committed through July 31, 2017 to waive fees and/or reimburse expenses to
the extent necessary to cap the Fund’s expenses at 1.28% for Class A shares, 2.03% for Class C shares, 0.83% for Class R6
shares, 1.08% for Administrator Class shares, and 0.88% for Institutional Class shares. After this time, the cap may be
increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.
During the year ended March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund
$980 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in
dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $6,221 for
waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.
Distribution fees
The Trust has adopted a distribution plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the
1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC
(“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and
Class C shares.
In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a
contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive
the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended March 31, 2017,
Funds Distributor received $4,957 from the sale of Class A shares and $125 in contingent deferred sales charges from
redemptions of Class C shares.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C, and
Administrator Class, of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each
respective class.
A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Notes to financial statements
Wells Fargo Small Cap Value Fund
29
5. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year
ended March 31, 2017 were $289,488,137 and $473,541,348, respectively.
The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act
and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these
interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund
trades are included within the respective purchases and sales amounts shown.
6. INVESTMENTS IN AFFILIATES
An affiliated investment is a company which is under common ownership or control of the Fund or which the Fund has
ownership of at least 5% of the outstanding voting shares. The following is a summary of transactions for the long-term
holdings of issuers that were either affiliates of the Fund at the beginning of the period or the end of the period.
Allied Healthcare Products Incorporated*
Cavco Industries Incorporated*
Century Casinos Incorporated
Medley Management Incorporated Class A
Skyline Corporation
Webco Industries Incorporated*
Shares,
beginning
of period
Shares
purchased
588,600
587,800
1,476,500
689,100
626,200
55,400
28,677
19,000
285,800
0
193,100
0
Shares
sold
Shares,
end of
period
Value, end
of period
617,277
169,600
0
235,100
4,100
55,400
0
437,200
1,762,300
454,000
815,200
0
$
0
50,890,080
13,322,988
3,768,200
7,679,184
0
Income
from
affiliated
securities
$
0
0
0
159,457
0
0
$159,457
Realized
gains (losses)
$ (652,430)
10,924,215
0
(1,936,404)
15,914
250,540
$ 8,601,835
* No longer an affiliate of the Fund at the end of the period.
7. ACQUISITION
After the close of business on July 22, 2016, the Fund acquired the net assets of Wells Fargo Small/Mid Cap Value Fund. The
purpose of the transaction was to combine two funds with similar investment objectives and strategies. Shareholders holding
Class A, Class C, Administrator Class, and Institutional Class shares of Wells Fargo Small/Mid Cap Value Fund received Class A,
Class C, Administrator Class, and Institutional Class shares, respectively, of the Fund in the reorganization. The acquisition was
accomplished by a tax-free exchange of all of the shares of Wells Fargo Small/Mid Cap Value Fund for 2,872,437 shares of the
Fund valued at $55,407,688 at an exchange ratio of 0.63, 0.75, 0.62, and 0.63 for Class A, Class C, Administrator Class, and
Institutional Class shares, respectively. The investment portfolio of Wells Fargo Small/Mid Cap Value Fund with a fair value of
$45,240,508, identified cost of $27,461,432 and unrealized gains of $17,779,076 at July 22, 2016 were the principal assets
acquired by the Fund. The aggregate net assets of Wells Fargo Small/Mid Cap Value Fund and the Fund immediately prior to
the acquisition were $55,407,688 and $934,257,976, respectively. The aggregate net assets of the Fund immediately after the
acquisition were $989,665,664. For financial reporting purposes, assets received and shares issued by the Fund were recorded
at fair value; however, the cost basis of the investments received from Wells Fargo Small/Mid Cap Value Fund was carried
forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to
shareholders for tax purposes.
Assuming the acquisition had been completed April 1, 2016, the beginning of the annual reporting period for the Fund,
the pro forma results of operations for the year ended March 31, 2017 would have been:
Net investment loss
$ (2,807,515)
Net realized and unrealized gains (losses) on investments
$261,166,279
Net increase in net assets resulting from operations
$258,358,764
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition
was completed, it is not practicable to separate the amounts of revenue and earnings of Wells Fargo Small/Mid Cap Value
Fund that have been included in the Fund’s Statement of Operations since July 25, 2016.
30
Wells Fargo Small Cap Value Fund
Notes to financial statements
8. BANK BORROWINGS
The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a
$250,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged
to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or
the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the
unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount
was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to
each participating fund.
For the year ended March 31, 2017, there were no borrowings by the Fund under the agreement.
9. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $111,444,751 and $279,330,765 of long-term capital gain for the years ended
March 31, 2017 and March 31, 2016, respectively.
As of March 31, 2017, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary
income
Undistributed
long-term
gain
Unrealized
gains
$1,352,843
$134,793,514
$353,363,181
10. INDEMNIFICATION
Under the Trust’s organizational documents, the officers and Trustees have been granted certain indemnification rights
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.
11. NEW ACCOUNTING PRONOUNCEMENT
In December 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-19, Technical Corrections and Improvements.
ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a
valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a
change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for
fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently
evaluating the potential impact of this new guidance to the financial statements.
12. REGULATORY CHANGES
In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing
rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information
by registered investment companies and to enhance liquidity risk management by open-end mutual funds and
exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the
SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require
standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments.
The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new
form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is
December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on
the financial statement disclosures and reporting requirements.
Report of independent registered public accounting firm
Wells Fargo Small Cap Value Fund
31
BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the
Wells Fargo Small Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of
March 31, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets
for each of the years in the two-year period then ended, and the financial highlights for the each of the years in the threeyear period then ended, the period from November 1, 2013 to March 31, 2014, and each of the years or periods in the
two-year period ended October 31, 2013. These financial statements and financial highlights are the responsibility of the
Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of March 31, 2017, by correspondence with the custodian and brokers or by other
appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects,
the financial position of the Wells Fargo Small Cap Value Fund as of March 31, 2017, the results of its operations for the
year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial
highlights for each of the years or periods noted in the first paragraph above, in conformity with U.S. generally accepted
accounting principles.
Boston, Massachusetts
May 24, 2017
32
Wells Fargo Small Cap Value Fund
Other information (unaudited)
TAX INFORMATION
Pursuant to Section 852 of the Internal Revenue Code, $111,444,751 was designated as a 20% rate gain distribution for
the fiscal year ended March 31, 2017.
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, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting
the SEC website at 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 on the Fund’s website at wellsfargofunds.com or by visiting
the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com),
on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is
publicly available on the Fund’s website 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
by visiting the SEC website at 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.
Other information (unaudited)
Wells Fargo Small Cap Value Fund
33
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo
family of funds, which consists of 138 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust,
Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in
conjunction with the Prospectus and the Statement of Additional Information2. 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
Name and
year of birth
Position held and
length of service*
Principal occupations during past five years or longer
Current other
public company or
investment company
directorships
William R. Ebsworth Trustee, since 2015
(Born 1957)
Asset Allocation Trust
Retired. From 1984 to 2013, equities analyst, portfolio manager, research
director and chief financial officer at Fidelity Management and Research
Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief
Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of
investment professionals managing client assets. Prior thereto, Board member
of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the
Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company,
and Empire Fidelity Investments Life Insurance Company. Board member of the
Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital
Endowment (non-profit organization), where he serves on the Investment
Committee and as a Chair of the Audit Committee. Mr. Ebsworth is a CFA®
charterholder and an Adjunct Lecturer, Finance, at Babson College.
Jane A. Freeman
(Born 1953)
Trustee, since 2015
Asset Allocation Trust
Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of
Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided
consulting services related to strategic business projects. Prior to 1999,
Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board
member of the Harding Loevner Funds from 1996 to 2014, serving as both
Lead Independent Director and chair of the Audit Committee. Board member
of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair
of the Audit Committee. Ms. Freeman is a Board Member of Ruth Bancroft
Garden (non-profit organization) and an inactive chartered financial analyst.
Peter G. Gordon**
(Born 1942)
Trustee, since 1998;
Chairman, since 2005
Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water
Company. Trustee Emeritus, Colby College.
Isaiah Harris, Jr.
(Born 1952)
Trustee, since 2009
Retired. Chairman of the Board of CIGNA Corporation since 2009, and
CIGNA Corporation;
Director since 2005. From 2003 to 2011, Director of Deluxe Corporation.
Asset Allocation Trust
Prior thereto, President and CEO of BellSouth Advertising and Publishing
Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from
2004 to 2005 and President of BellSouth Consumer Services from 2000 to
2003. Emeritus member of the Iowa State University Foundation Board of
Governors. Emeritus Member of the Advisory Board of Iowa State University
School of Business. Advisory Board Member, Palm Harbor Academy (charter
school). Advisory Board Member, Child Evangelism Fellowship (non-profit).
Mr. Harris is a certified public accountant (inactive status).
Judith M. Johnson
(Born 1949)
Trustee, since 2008;
Audit Committee
Chairman, since 2008
Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of
Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an
attorney, certified public accountant and a certified managerial accountant.
David F. Larcker
(Born 1950)
Trustee, since 2009
Asset Allocation Trust
James Irvin Miller Professor of Accounting at the Graduate School of Business,
Stanford University, Director of the Corporate Governance Research Initiative
and Senior Faculty 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.
Asset Allocation Trust
Asset Allocation Trust
34
Wells Fargo Small Cap Value Fund
Other information (unaudited)
Current other
public company or
investment company
directorships
Name and
year of birth
Position held and
length of service*
Olivia S. Mitchell
(Born 1953)
Trustee, since 2006
International Foundation of Employee Benefit Plans Professor, Wharton
School of the University of Pennsylvania since 1993. Director of Wharton’s
Pension Research Council and Boettner Center on Pensions & Retirement
Research, and Research Associate at the National Bureau of Economic
Research. Previously, Cornell University Professor from 1978 to 1993.
Timothy J. Penny
(Born 1951)
Trustee, since 1996
President and Chief Executive Officer of Southern Minnesota Initiative
Asset Allocation Trust
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
(Born 1943)
Trustee, since 2010
Served on the Investment Company Institute’s Board of Governors and
Asset Allocation Trust
Executive Committee from 2008-2011 as well the Governing Council of the
Independent Directors Council from 2006-2011 and the Independent Directors
Council Executive Committee from 2008-2011. Chairman of the IDC from
2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007.
Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to
2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the
Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.
Principal occupations during past five years or longer
Asset Allocation Trust
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
** Peter Gordon is expected to retire on December 31, 2017.
Officers
1
2
Name and
year of birth
Position held and
length of service
Andrew Owen
(Born 1960)
President, since 2017
Executive Vice President of Wells Fargo Bank, N.A. and President of
Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset
Management, since 2014. Executive Vice President responsible for
marketing, investments and product development for Wells Fargo Funds
Management, LLC, from 2009 to 2014.
Nancy Wiser1
(Born 1967)
Treasurer, since 2012
Executive Vice President of Wells Fargo Funds Management, LLC since 2011.
Chief Operating Officer and Chief Compliance Officer at LightBox Capital
Management LLC, from 2008 to 2011.
C. David Messman
(Born 1960)
Secretary, since 2000;
Chief Legal Officer,
since 2003
Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since
2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice
President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Michael Whitaker
(Born 1967)
Chief Compliance Officer, Executive Vice President of Wells Fargo Funds Management, LLC since 2016.
since 2016
Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset
Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc.
from 2014 to 2016, Fidelity Investments Money Management, Inc. from
2014 to 2016, Fidelity Investments from 2007 to 2016.
David Berardi
(Born 1975)
Assistant Treasurer,
since 2009
Vice President of Wells Fargo Funds Management, LLC since 2009. Vice
President of Evergreen Investment Management Company, LLC from 2008
to 2010. Manager of Fund Reporting and Control for Evergreen Investment
Management Company, LLC from 2004 to 2010.
Jeremy DePalma1
(Born 1974)
Assistant Treasurer,
since 2009
Senior Vice President of Wells Fargo Funds Management, LLC since 2009.
Senior Vice President of Evergreen Investment Management Company, LLC
from 2008 to 2010 and head of the Fund Reporting and Control Team
within Fund Administration from 2005 to 2010.
Principal occupations during past five years or longer
Nancy Wiser acts as Treasurer of 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in
the Fund Complex.
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling
1-800-222-8222 or by visiting the website at wellsfargofunds.com.
List of abbreviations
Wells Fargo Small Cap Value Fund
The following is a list of common abbreviations for terms and entities that may have appeared in this report.
ACA
ADR
ADS
AGC
AGM
Ambac
AMT
AUD
BAN
BHAC
BRL
CAB
CAD
CCAB
CDA
CDO
CHF
COP
CLP
DKK
DRIVER
DW&P
DWR
ECFA
EDA
EDFA
ETF
EUR
FDIC
FFCB
FGIC
FHA
FHLB
FHLMC
FICO
FNMA
FSA
GBP
GDR
GNMA
GO
HCFR
HEFA
HEFAR
HFA
HFFA
HKD
HUD
HUF
IDA
IDAG
IDR
IEP
JPY
KRW
LIBOR
LIFER
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
ACA Financial Guaranty Corporation
American depositary receipt
American depositary shares
Assured Guaranty Corporation
Assured Guaranty Municipal
Ambac Financial Group Incorporated
Alternative minimum tax
Australian dollar
Bond anticipation notes
Berkshire Hathaway Assurance Corporation
Brazilian real
Capital appreciation bond
Canadian dollar
Convertible capital appreciation bond
Community Development Authority
Collateralized debt obligation
Swiss franc
Colombian peso
Chilean peso
Danish krone
Derivative inverse tax-exempt receipts
Department of Water & Power
Department of Water Resources
Educational & Cultural Facilities Authority
Economic Development Authority
Economic Development Finance Authority
Exchange-traded fund
Euro
Federal Deposit Insurance Corporation
Federal Farm Credit Banks
Financial Guaranty Insurance Corporation
Federal Housing Administration
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
The Financing Corporation
Federal National Mortgage Association
Farm Service Agency
Great British pound
Global depositary receipt
Government National Mortgage Association
General obligation
Healthcare facilities revenue
Health & Educational Facilities Authority
Higher education facilities authority revenue
Housing Finance Authority
Health Facilities Financing Authority
Hong Kong dollar
Department of Housing and Urban Development
Hungarian forint
Industrial Development Authority
Industrial Development Agency
Indonesian rupiah
Irish pound
Japanese yen
Republic of Korea won
London Interbank Offered Rate
Long Inverse Floating Exempt Receipts
LIQ
LLC
LLLP
LLP
LOC
LP
MBIA
MFHR
MSTR
MTN
MUD
MXN
MYR
National
NGN
NOK
NZD
PCFA
PCL
PCR
PFA
PFFA
PFOTER
plc
PLN
PUTTER
R&D
Radian
RAN
RDA
RDFA
REIT
ROC
RON
RUB
SAVRS
SBA
SDR
SEK
SFHR
SFMR
SGD
SPA
SPDR
SPEAR
STRIPS
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
TAN
TBA
THB
TIPS
TRAN
TRY
TTFA
TVA
ZAR
—
—
—
—
—
—
—
—
—
Liquidity agreement
Limited liability company
Limited liability limited partnership
Limited liability partnership
Letter of credit
Limited partnership
Municipal Bond Insurance Association
Multifamily housing revenue
Municipal securities trust receipts
Medium-term note
Municipal Utility District
Mexican peso
Malaysian ringgit
National Public Finance Guarantee Corporation
Nigerian naira
Norwegian krone
New Zealand dollar
Pollution Control Financing Authority
Public Company Limited
Pollution control revenue
Public Finance Authority
Public Facilities Financing Authority
Puttable floating option tax-exempt receipts
Public limited company
Polish zloty
Puttable tax-exempt receipts
Research & development
Radian Asset Assurance
Revenue anticipation notes
Redevelopment Authority
Redevelopment Finance Authority
Real estate investment trust
Reset option certificates
Romanian lei
Russian ruble
Select auction variable rate securities
Small Business Authority
Swedish depositary receipt
Swedish krona
Single-family housing revenue
Single-family mortgage revenue
Singapore dollar
Standby purchase agreement
Standard & Poor’s Depositary Receipts
Short Puttable Exempt Adjustable Receipts
Separate trading of registered interest and
principal securities
Tax anticipation notes
To be announced
Thai baht
Treasury inflation-protected securities
Tax revenue anticipation notes
Turkish lira
Transportation Trust Fund Authority
Tennessee Valley Authority
South African rand
35
This page is intentionally left blank.
For more information
More information about Wells Fargo Funds is available
free upon request. To obtain literature, please write,
email, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 8266
Boston, MA 02266-8266
Email: [email protected]
Website: wellsfargofunds.com
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 the Fund. If this report is used for
promotional purposes, distribution of the report must be accompanied or preceded by
a current prospectus. Before investing, please consider the investment objectives, risks,
charges, and expenses of the investment. For a current prospectus and, if available, a
summary prospectus, containing this information, call 1-800-222-8222 or visit the
Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you
invest or send money.
Wells Fargo Asset Management (WFAM) is a trade name used by the asset management
businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned
subsidiary of Wells Fargo & Company, provides investment advisory and administrative services
for Wells Fargo 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, an affiliate of Wells Fargo & Company. Neither Wells Fargo Funds Management nor
Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides
investment advice/recommendations or acts as an investment advice fiduciary to any investor.
NOT FDIC INSURED ▪ NO BANK GUARANTEE ▪ MAY LOSE VALUE
© 2017 Wells Fargo Funds Management, LLC. All rights reserved.
Printed on Recycled paper
302875 05-17
A244/AR244 03-17