N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09255

Wells Fargo Variable Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

Registrant’s telephone number, including area code: 800-222-8222

Date of fiscal year end: December 31

Registrant is making a filing for 6 of its series:

Wells Fargo VT Discovery Fund, Wells Fargo VT Index Asset Allocation Fund, Wells Fargo VT International Equity Fund, Wells Fargo VT Omega Growth Fund, Wells Fargo VT Opportunity Fund, and Wells Fargo VT Small Cap Growth Fund.

Date of reporting period: June 30, 2017

ITEM 1. REPORT TO STOCKHOLDERS

Semi-Annual Report

June 30, 2017

Wells Fargo VT Discovery Fund

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	15
Other information	20
List of abbreviations	27

The views expressed and any forward-looking statements are as of June 30, 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 VT Discovery Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty.

Dear Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo VT Discovery Fund for the six-month period that ended June 30, 2017. Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty. U.S. and international stocks returned 9.34% and 14.10% for the six-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 -2.27%.

Economies improved in the first quarter of 2017, supporting markets.

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. In March, U.S. Federal Reserve (Fed) officials raised their target interest rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target interest 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 because they benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market.

Steady advancement in many markets marked the second quarter of 2017.

With steady, modest economic growth both in the U.S. and abroad during the second quarter of 2017, most equity markets in the U.S. and abroad advanced with few signs of volatility. Within the economy, U.S. inflation trended lower despite the unemployment rate continuing to decline. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, Fed officials in June again raised their target interest rate by a quarter percentage point to between 1.00% and 1.25%. They also released a blueprint for reducing the Fed’s balance sheet, which had ballooned due to quantitative easing. Although economic momentum increased in Europe, the European Central Bank held its rates steady at low levels because underlying inflation remained subdued. In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar.

¹  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.

²  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted 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.

³  The Bloomberg 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) Wells Fargo VT Discovery Fund 3

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. 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.

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

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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Discovery 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

Michael T. Smith, CFA^®

Christopher J. Warner, CFA^®

Average annual total returns (%) as of June 30, 2017

								Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		Gross		Net2
Class 2	5-8-1992		23.30		13.22		8.83		1.18		1.15
Russell 2500TM Growth Index3	–		21.44		14.33		8.18		–		–

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If sales loads or charges had been reflected, performance would have been lower.

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.

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. 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 refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Discovery Fund 5

Ten largest holdings (%) as of June 30, 20174
Waste Connections Incorporated	2.98
Take-Two Interactive Software Incorporated	2.16
Brink’s Company	2.12
Berry Plastics Group Incorporated	1.90
Vail Resorts Incorporated	1.87
John Bean Technologies Corporation	1.84
Allegion plc	1.84
BWX Technologies Incorporated	1.82
Ultimate Software Group Incorporated	1.80
Bright Horizons Family Solutions Incorporated	1.77

Sector distribution as of June 30, 2017⁵

¹  Reflects the expense ratios as stated in the most recent prospectus. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

²  The manager has committed through April 30, 2018, 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 the amount shown. 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 prospectus.

³  The Russell 2500^TM Growth Index measures the performance of those Russell 2500 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁴  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.

⁵  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.

6 Wells Fargo VT Discovery Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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 January 1, 2017 to June 30, 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 separate account charges assessed by participating insurance companies. 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 1-1-2017		Ending account value 6-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class 2
Actual	$	1,000.00	$	1,155.15	$	6.15		1.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.09	$	5.76		1.15	%

¹ Expenses paid is equal to the annualized net expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Discovery Fund 7

Security name	Shares		Value
Common Stocks: 98.80%
Consumer Discretionary: 16.59%
Auto Components: 1.01%
Tenneco Automotive Incorporated		23,600	$	1,364,788
Distributors: 1.31%
Pool Corporation		15,100		1,775,307
Diversified Consumer Services: 2.89%
Adtalem Global Education Incorporated		39,900		1,514,205
Bright Horizons Family Solutions Incorporated †		31,100		2,401,231
				3,915,436
Hotels, Restaurants & Leisure: 8.28%
Dave & Buster’s Entertainment Incorporated †		26,251		1,745,954
Hilton Grand Vacations Incorporated †		47,000		1,694,820
Norwegian Cruise Line Holdings Limited †		31,600		1,715,564
Six Flags Entertainment Corporation		37,292		2,222,976
Vail Resorts Incorporated		12,500		2,535,375
Wingstop Incorporated «		42,141		1,302,157
				11,216,846
Media: 1.42%
Cinemark Holdings Incorporated		49,774		1,933,720
Specialty Retail: 1.68%
Burlington Stores Incorporated †		24,716		2,273,625
Consumer Staples: 2.13%
Beverages: 2.13%
Constellation Brands Incorporated Class A		7,900		1,530,467
National Beverage Corporation «		14,500		1,356,620
				2,887,087
Energy: 0.88%
Oil, Gas & Consumable Fuels: 0.88%
Diamondback Energy Incorporated †		13,500		1,198,935
Financials: 3.52%
Capital Markets: 1.31%
Raymond James Financial Incorporated		22,100		1,772,862
Consumer Finance: 1.40%
SLM Corporation †		164,700		1,894,050
Thrifts & Mortgage Finance: 0.81%
Radian Group Incorporated		67,300		1,100,355

The accompanying notes are an integral part of these financial statements.

8 Wells Fargo VT Discovery Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Health Care: 16.68%
Biotechnology: 3.55%
Bioverativ Incorporated †		29,400	$	1,768,998
bluebird bio Incorporated †		6,600		693,330
Exelixis Incorporated †		48,710		1,199,727
Prothena Corporation plc †«		8,441		456,827
Seattle Genetics Incorporated †		6,400		331,136
Tesaro Incorporated †«		2,500		349,650
				4,799,668
Health Care Equipment & Supplies: 8.17%
Cantel Medical Corporation		22,958		1,788,658
DexCom Incorporated †		17,556		1,284,221
Glaukos Corporation †«		30,000		1,244,100
Hill-Rom Holdings Incorporated		400		31,878
Hologic Incorporated †		45,200		2,051,176
ICU Medical Incorporated †		11,200		1,932,000
Insulet Corporation †		36,699		1,883,026
Integra LifeSciences Holdings Corporation †		15,600		850,356
				11,065,415
Health Care Providers & Services: 2.80%
Amedisys Incorporated †		29,622		1,860,558
Tivity Health Incorporated †		48,602		1,936,790
				3,797,348
Life Sciences Tools & Services: 1.88%
Bio-Rad Laboratories Incorporated Class A †		3,100		701,561
Cambrex Corporation †		30,934		1,848,307
				2,549,868
Pharmaceuticals: 0.28%
Neuroderm Limited †		12,600		376,740
Industrials: 21.19%
Aerospace & Defense: 3.67%
BWX Technologies Incorporated		50,700		2,471,625
Mercury Computer Systems Incorporated †		43,400		1,826,706
Orbital ATK Incorporated		6,800		668,848
				4,967,179
Airlines: 1.43%
Spirit Airlines Incorporated †		37,600		1,942,040
Building Products: 4.84%
A.O. Smith Corporation		34,400		1,937,752
Allegion plc		30,700		2,490,384
Masonite International Corporation †		28,100		2,121,550
				6,549,686

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Discovery Fund 9

Security name	Shares		Value
Commercial Services & Supplies: 5.37%
Aqua Metals Incorporated †«		28,700	$	360,185
Brink’s Company		42,800		2,867,600
Waste Connections Incorporated		62,744		4,041,936
				7,269,721
Machinery: 2.09%
Energy Recovery Incorporated †«		41,609		344,939
John Bean Technologies Corporation		25,414		2,490,572
				2,835,511
Professional Services: 1.72%
TransUnion †		53,650		2,323,582
Trading Companies & Distributors: 2.07%
GMS Incorporated †		31,200		876,720
Univar Incorporated †		66,200		1,933,040
				2,809,760
Information Technology: 32.58%
Electronic Equipment, Instruments & Components: 3.93%
Littelfuse Incorporated		12,057		1,989,405
National Instruments Corporation		25,800		1,037,676
Universal Display Corporation		21,000		2,294,250
				5,321,331
Internet Software & Services: 6.81%
Box Incorporated Class A †		76,400		1,393,536
CoStar Group Incorporated †		6,919		1,823,848
MercadoLibre Incorporated		8,760		2,197,709
Q2 Holdings Incorporated †		28,800		1,064,160
Twilio Incorporated Class A †«		26,100		759,771
Yandex NV Class A †		75,485		1,980,726
				9,219,750
IT Services: 9.48%
Acxiom Corporation †		64,406		1,673,268
Black Knight Financial Services Incorporated Class A †		36,100		1,478,295
EPAM Systems Incorporated †		24,219		2,036,576
Euronet Worldwide Incorporated †		24,893		2,174,901
Square Incorporated Class A †		41,500		973,590
Total System Services Incorporated		37,700		2,196,025
WEX Incorporated †		22,200		2,314,794
				12,847,449
Semiconductors & Semiconductor Equipment: 2.50%
Advanced Micro Devices Incorporated †«		102,500		1,279,200
Teradyne Incorporated		70,000		2,102,100
				3,381,300

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo VT Discovery Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name				Shares		Value
Software: 8.03%
Guidewire Software Incorporated †					28,491	$	1,957,617
Proofpoint Incorporated †					17,321		1,503,982
PTC Incorporated †					37,300		2,055,976
Take-Two Interactive Software Incorporated †					39,800		2,920,524
Ultimate Software Group Incorporated †					11,600		2,436,696
							10,874,795
Technology Hardware, Storage & Peripherals: 1.83%
3D Systems Corporation †«					26,200		489,940
NCR Corporation †					48,800		1,992,992
							2,482,932
Materials: 3.84%
Chemicals: 0.78%
Albemarle Corporation					10,000		1,055,400
Construction Materials: 1.16%
Vulcan Materials Company					12,400		1,570,832
Containers & Packaging: 1.90%
Berry Plastics Group Incorporated †					45,200		2,576,851
Telecommunication Services: 1.39%
Diversified Telecommunication Services: 1.39%
Zayo Group Holdings Incorporated †					60,912		1,882,181
Total Common Stocks (Cost $109,992,032)							133,832,350
	Yield
Short-Term Investments: 7.39%
Investment Companies: 7.39%
Securities Lending Cash Investment LLC (l)(r)(u)		1.39	%		8,046,537		8,047,341
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.86			1,955,103		1,955,103
Total Short-Term Investments (Cost $10,002,184)							10,002,444

Total investments in securities (Cost $119,994,216) *	106.19	%		143,834,794
Other assets and liabilities, net	(6.19	)		(8,381,447	)
Total net assets	100.00	%	$	135,453,347

† Non-income-earning security

« All or a portion of this security is on loan.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the 7-day annualized yield at period end.

* Cost for federal income tax purposes is $120,059,347 and unrealized gains (losses) consists of:

Gross unrealized gains	$	25,200,251
Gross unrealized losses		(1,424,804	)
Net unrealized gains	$	23,775,447

The accompanying notes are an integral part of these financial statements.

Statement of assets and liabilities—June 30, 2017 (unaudited) Wells Fargo VT Discovery Fund 11

Assets
Investments
In unaffiliated securities (including $7,852,192 of securities loaned), at value (cost $109,992,032)	$	133,832,350
In affiliated securities, at value (cost $10,002,184)		10,002,444
Total investments, at value (cost $119,994,216)		143,834,794
Receivable for investments sold		1,329,472
Receivable for Fund shares sold		18,585
Receivable for dividends		49,203
Receivable for securities lending income		11,154
Prepaid expenses and other assets		2,038
Total assets		145,245,246
Liabilities
Payable for investments purchased		1,403,710
Payable for Fund shares redeemed		98,173
Payable upon receipt of securities loaned		8,047,086
Due to custodian bank		77,208
Management fee payable		87,936
Distribution fee payable		29,831
Administration fee payable		9,546
Accrued expenses and other liabilities		38,409
Total liabilities		9,791,899
Total net assets	$	135,453,347
NET ASSETS CONSIST OF
Paid-in capital	$	96,042,638
Accumulated net investment loss		(406,204	)
Accumulated net realized gains on investments		15,976,335
Net unrealized gains on investments		23,840,578
Total net assets	$	135,453,347
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	135,453,347
Shares outstanding – Class 21		4,525,788
Net asset value per share – Class 2		$29.93

¹  The Fund has an unlimited number of authorized shares.

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo VT Discovery Fund Statement of operations—six months ended June 30, 2017 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $2,259)	$	283,386
Securities lending income, net		44,721
Income from affiliated securities		8,488
Total investment income		336,595
Expenses
Management fee		484,434
Administration fee
Class 2		51,673
Distribution fee
Class 2		161,478
Custody and accounting fees		11,863
Professional fees		17,962
Shareholder report expenses		13,217
Trustees’ fees and expenses		10,732
Other fees and expenses		2,250
Total expenses		753,609
Less: Fee waivers and/or expense reimbursements		(10,810	)
Net expenses		742,799
Net investment loss		(406,204	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		9,055,724
Affiliated securities		(125	)
Net realized gains on investments		9,055,599
Net change in unrealized gains (losses) on investments		9,799,632
Net realized and unrealized gains (losses) on investments		18,855,231
Net increase in net assets resulting from operations	$	18,449,027

The accompanying notes are an integral part of these financial statements.

Statement of changes in net assets Wells Fargo VT Discovery Fund 13

	Six months ended June 30, 2017 (unaudited)						Year ended December 31, 2016
Operations
Net investment loss				$	(406,204	)				$	(617,120	)
Net realized gains on investments					9,055,599						6,984,194
Net change in unrealized gains (losses) on investments					9,799,632						1,943,485
Net increase in net assets resulting from operations					18,449,027						8,310,559
Distributions to shareholders from
Net realized gains – Class 2					0						(8,810,379	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		243,924			7,045,296			326,229			8,069,688
Reinvestment of distributions – Class 2		0			0			361,229			8,810,379
Payment for shares redeemed – Class 2		(347,268	)		(9,960,448	)		(938,572	)		(23,299,476	)
Net decrease in net assets resulting from capital share transactions					(2,915,152	)					(6,419,409	)
Total increase (decrease) in net assets					15,533,875						(6,919,229	)
Net assets
Beginning of period					119,919,472						126,838,701
End of period				$	135,453,347					$	119,919,472
Undistributed (accumulated) net investment income (loss)				$	(406,204	)				$	0

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo VT Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 2				2016			2015			2014			2013			2012
Net asset value, beginning of period		$25.91			$25.99			$30.71			$35.20			$25.16			$21.37
Net investment loss		(0.09	)		(0.13	)		(0.21	)		(0.22	)		(0.17	)		(0.01	)
Net realized and unrealized gains (losses) on investments		4.11			2.00			0.21			0.16			11.06			3.80
Total from investment operations		4.02			1.87			0.00			(0.06	)		10.89			3.79
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.00	)1		0.00
Net realized gains		0.00			(1.95	)		(4.72	)		(4.43	)		(0.85	)		0.00
Total distributions to shareholders		0.00			(1.95	)		(4.72	)		(4.43	)		(0.85	)		0.00
Net asset value, end of period		$29.93			$25.91			$25.99			$30.71			$35.20			$25.16
Total return2		15.52	%		7.65	%		(1.46	)%		0.36	%		43.80	%		17.74	%
Ratios to average net assets (annualized)
Gross expenses		1.17	%		1.18	%		1.17	%		1.14	%		1.16	%		1.21	%
Net expenses		1.15	%		1.15	%		1.15	%		1.14	%		1.15	%		1.15	%
Net investment loss		(0.63	)%		(0.52	)%		(0.72	)%		(0.68	)%		(0.56	)%		(0.03	)%
Supplemental data
Portfolio turnover rate		41	%		85	%		90	%		79	%		88	%		98	%
Net assets, end of period (000s omitted)		$135,453			$119,919			$126,839			$138,490			$158,451			$111,458

¹  Amount is less than $0.005.

²  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 (unaudited) Wells Fargo VT Discovery Fund 15

1. ORGANIZATION

Wells Fargo Variable 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 Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Discovery Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of 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.

Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally 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 of the Fund. 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 of Wells Fargo Funds Management, LLC (“Funds Management”). 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 or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer 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.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

16 Wells Fargo VT Discovery Fund Notes to financial statements (unaudited)

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

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. Dividend income 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.

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.

Notes to financial statements (unaudited) Wells Fargo VT Discovery Fund 17

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	22,479,722	$	0	$	0	$	22,479,722
Consumer staples		2,887,087		0		0		2,887,087
Energy		1,198,935		0		0		1,198,935
Financials		4,767,267		0		0		4,767,267
Health care		22,589,039		0		0		22,589,039
Industrials		28,697,479		0		0		28,697,479
Information technology		44,127,557		0		0		44,127,557
Materials		5,203,083		0		0		5,203,083
Telecommunication services		1,882,181		0		0		1,882,181
Short-term investments
Investment companies		1,955,103		0		0		1,955,103
Investments measured at net asset value*								8,047,341
Total assets	$	135,787,453	$	0	$	0	$	143,834,794

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $8,047,341 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 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, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 0.75% and declining to 0.58% as the average daily net assets of the Fund increase. For the six months ended June 30, 2017, the management fee was equivalent to an annual rate of 0.75% 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. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.35% as the average daily net assets of the Fund increase.

Administration fee

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 a class level administration fee of 0.08% which is calculated based on the average daily net assets of Class 2 shares.

18 Wells Fargo VT Discovery Fund Notes to financial statements (unaudited)

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 April 30, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.15% for Class 2 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 six months ended June 30, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $111 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.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended June 30, 2017 were $51,523,941 and $53,012,904, 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 do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) 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.

For the six months ended June 30, 2017, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

8. 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.

9. 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. Management has evaluated the amendments to Regulation S-X and its adoption will result in enhanced financial disclosures in the Fund’s financial statements. Management continues to evaluate the reporting requirements for the new form types (compliance date is June 1, 2018) and the implementation of the liquidity risk management program (compliance date is December 1, 2018).

Notes to financial statements (unaudited) Wells Fargo VT Discovery Fund 19

10. SUBSEQUENT DISTRIBUTION

On July 17, 2017, the Fund declared distributions from long-term capital gains to shareholders of record on July 14, 2017. The per share amounts payable on July 18, 2017 were as follows:

	Long-term capital gains
Class 2	$	1.56688

These distributions are not reflected in the accompanying financial statements.

20 Wells Fargo VT Discovery Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, 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 VT Discovery Fund 21

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 148 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 (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	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.	Asset Allocation Trust
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.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. 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 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).	CIGNA Corporation; Asset Allocation Trust
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.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	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

22 Wells Fargo VT Discovery Fund Other information (unaudited)

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
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.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and 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. 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.	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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors (Blackrock) from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	Asset Allocation Trust
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT Discovery Fund 23

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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.

¹  Jeremy DePalma acts as Treasurer of 79 funds in the Fund Complex and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-260-5969 or by visiting the website at wellsfargofunds.com.

24 Wells Fargo VT Discovery Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Variable Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo VT Discovery Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2016. In certain cases, the Board also considered more current results for various time periods ended March 31, 2017. The

Other information (unaudited) Wells Fargo VT Discovery Fund 25

Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund was higher than the average performance of the Universe for the one-, five- and ten-year periods ended December 31, 2016, but lower than the average performance of the Universe for the three-year period ended December 31, 2016. However, the Board noted that the performance ranking of the Fund in the Universe had improved from the prior quarter-end for the one-, three and five-year periods ended March 31, 2017. The Board also noted that the performance of the Fund was lower than its benchmark, the Russell 2500^TM Growth Index, for the one-, three- and five-year periods ended December 31, 2016, but higher than its index for the ten-year period ended December 31, 2016.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance. The Board also noted that the Fund experienced a portfolio manager change during the third quarter of 2016.

The Board also received and considered information regarding the Fund’s net operating expense ratio and its various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratio of funds in a class-specific expense group that was determined by Broadridge to be similar to the Fund (the “Group”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Group and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratio of the Fund was equal to the median net operating expense ratio of the expense Group.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rate”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Fund’s Management Rate with the average contractual investment management fee rate of funds in the expense Group at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rate of the Fund was lower than the sum of these average rates for the Fund’s expense Group.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.

26 Wells Fargo VT Discovery Fund Other information (unaudited)

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo VT Discovery Fund 27

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —   Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

PJSC —  Public Joint Stock Company

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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: fundservice@wellsfargo.com

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 1-800-260-5969 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.

304903 08-17

SVT1/SAR138 06-17

Semi-Annual Report

June 30, 2017

Wells Fargo VT Index Asset Allocation Fund

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	28
Statement of operations	29
Statement of changes in net assets	30
Financial highlights	31
Notes to financial statements	32
Other information	38
List of abbreviations	45

The views expressed and any forward-looking statements are as of June 30, 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 VT Index Asset Allocation Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty.

Dear Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo VT Index Asset Allocation Fund for the six-month period that ended June 30, 2017. Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty. U.S. and international stocks returned 9.34% and 14.10% for the six-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 -2.27%.

Economies improved in the first quarter of 2017, supporting markets.

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. In March, U.S. Federal Reserve (Fed) officials raised their target interest rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target interest 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 because they benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market.

Steady advancement in many markets marked the second quarter of 2017.

With steady, modest economic growth both in the U.S. and abroad during the second quarter of 2017, most equity markets in the U.S. and abroad advanced with few signs of volatility. Within the economy, U.S. inflation trended lower despite the unemployment rate continuing to decline. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, Fed officials in June again raised their target interest rate by a quarter percentage point to between 1.00% and 1.25%. They also released a blueprint for reducing the Fed’s balance sheet, which had ballooned due to quantitative easing. Although economic momentum increased in Europe, the European Central Bank held its rates steady at low levels because underlying inflation remained subdued. In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar.

¹  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.

²  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted 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.

³  The Bloomberg 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) Wells Fargo VT Index Asset Allocation Fund 3

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. 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.

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

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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Index Asset Allocation Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term total return, consisting of capital appreciation and current income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp Acharya, CFA^®, FRM

Petros Bocray, CFA^®, FRM^‡

Christian L. Chan, CFA^®

Average annual total returns (%) as of June 30, 2017

									Expense ratios1 (%)
	Inception date	1 year			5 year		10 year		Gross		Net2
Class 2	4-15-1994		9.67			11.08		6.36		1.10		1.00
Index Asset Allocation Blended Index3	–		9.45			10.10		8.04		–		–
Bloomberg Barclays U.S. Treasury Index4	–		(2.32	)		1.28		4.06		–		–
S&P 500 Index5	–		17.90			14.63		7.18		–		–

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If sales loads or charges had been reflected, performance would have been lower.

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.

Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Consult the Fund’s prospectus for additional information on these and other risks.

Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Index Asset Allocation Fund 5

Ten largest holdings (%) as of June 30, 20176
Apple Incorporated	2.15
Microsoft Corporation	1.53
Amazon.com Incorporated	1.10
Facebook Incorporated Class A	1.02
Johnson & Johnson	1.02
Exxon Mobil Corporation	0.98
JPMorgan Chase & Company	0.93
Berkshire Hathaway Incorporated Class B	0.92
Alphabet Incorporated Class A	0.79
Alphabet Incorporated Class C	0.78

Equity sector distribution as of June 30, 2017⁷

Current target allocation as of June 30, 2017⁸

Neutral target allocation

^‡ Mr. Bocray became a portfolio manager of the Fund on June 30, 2017.

¹  Reflects the expense ratios as stated in the most recent prospectus. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

²  The manager has committed through April 30, 2018, 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 the amount shown. 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 prospectus.

³  Source: Wells Fargo Funds Management, LLC. The Index Asset Allocation Blended Index is weighted 60% in the S&P 500 Index and 40% in the Bloomberg Barclays U.S. Treasury Index. You cannot invest directly in an index.

⁴  The Bloomberg Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index.

⁵  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

⁶  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.

⁷  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  Current target allocation includes the effect of any tactical futures overlay that may be in place. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo VT Index Asset Allocation Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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 January 1, 2017 to June 30, 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 separate account charges assessed by participating insurance companies. 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.    

	Beginning account value 1-1-2017		Ending account value 6-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class 2
Actual	$	1,000.00	$	1,055.50	$	5.10		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.84	$	5.01		1.00	%

¹ Expenses paid is equal to the annualized net expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 7

Security name	Shares		Value
Common Stocks: 59.53%
Consumer Discretionary: 7.30%
Auto Components: 0.12%
BorgWarner Incorporated		467	$	19,782
Delphi Automotive plc		626		54,869
The Goodyear Tire & Rubber Company		589		20,591
				95,242
Automobiles: 0.29%
Ford Motor Company		9,152		102,411
General Motors Company		3,213		112,230
Harley-Davidson Incorporated		409		22,094
				236,735
Distributors: 0.07%
Genuine Parts Company		344		31,909
LKQ Corporation †		721		23,757
				55,666
Diversified Consumer Services: 0.02%
H&R Block Incorporated		484		14,960
Hotels, Restaurants & Leisure: 1.05%
Carnival Corporation		980		64,259
Chipotle Mexican Grill Incorporated †		66		27,463
Darden Restaurants Incorporated		290		26,228
Hilton Worldwide Holdings Incorporated		479		29,626
Marriott International Incorporated Class A		726		72,825
McDonald’s Corporation		1,907		292,076
Royal Caribbean Cruises Limited		392		42,818
Starbucks Corporation		3,388		197,554
Wyndham Worldwide Corporation		244		24,500
Wynn Resorts Limited		186		24,946
Yum! Brands Incorporated		774		57,090
				859,385
Household Durables: 0.28%
D.R. Horton Incorporated		799		27,621
Garmin Limited		267		13,625
Leggett & Platt Incorporated		309		16,232
Lennar Corporation Class A		475		25,327
Mohawk Industries Incorporated †		147		35,528
Newell Rubbermaid Incorporated		1,131		60,644
PulteGroup Incorporated		664		16,288
Whirlpool Corporation		172		32,959
				228,224
Internet & Direct Marketing Retail: 1.61%
Amazon.com Incorporated †		928		898,304

The accompanying notes are an integral part of these financial statements.

8 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Internet & Direct Marketing Retail (continued)
Expedia Incorporated		284	$	42,302
Netflix Incorporated †		1,008		150,605
The Priceline Group Incorporated †		114		213,239
TripAdvisor Incorporated †		258		9,856
				1,314,306
Leisure Products: 0.06%
Hasbro Incorporated		263		29,327
Mattel Incorporated		801		17,246
				46,573
Media: 1.82%
CBS Corporation Class B		862		54,978
Charter Communications Incorporated Class A †		504		169,772
Comcast Corporation Class A		11,075		431,039
Discovery Communications Incorporated Class A †		360		9,299
Discovery Communications Incorporated Class C †		493		12,429
DISH Network Corporation Class A †		532		33,388
Interpublic Group of Companies Incorporated		925		22,755
News Corporation Class A		895		12,262
News Corporation Class B		279		3,948
Omnicom Group Incorporated		544		45,098
Scripps Networks Interactive Incorporated Class A		223		15,233
The Walt Disney Company		3,404		361,675
Time Warner Incorporated		1,815		182,244
Twenty-First Century Fox Incorporated Class A		2,462		69,773
Twenty-First Century Fox Incorporated Class B		1,140		31,772
Viacom Incorporated Class B		824		27,662
				1,483,327
Multiline Retail: 0.23%
Dollar General Corporation		590		42,533
Dollar Tree Incorporated †		553		38,666
Kohl’s Corporation		398		15,391
Macy’s Incorporated		712		16,547
Nordstrom Incorporated		260		12,436
Target Corporation		1,290		67,454
				193,027
Specialty Retail: 1.34%
Advance Auto Parts Incorporated		172		20,053
AutoNation Incorporated †		154		6,493
AutoZone Incorporated †		65		37,080
Bed Bath & Beyond Incorporated		339		10,306
Best Buy Company Incorporated		621		35,602
CarMax Incorporated Ǡ		433		27,305
Foot Locker Incorporated		307		15,129
L Brands Incorporated		564		30,394
Lowe’s Companies Incorporated		2,008		155,680

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 9

Security name	Shares		Value
Specialty Retail (continued)
O’Reilly Automotive Incorporated †		213	$	46,592
Ross Stores Incorporated		917		52,938
Signet Jewelers Limited		159		10,055
Staples Incorporated		1,529		15,397
The Gap Incorporated		515		11,325
The Home Depot Incorporated		2,797		429,060
The TJX Companies Incorporated		1,505		108,616
Tiffany & Company		250		23,468
Tractor Supply Company		300		16,263
ULTA Beauty Incorporated †		136		39,078
				1,090,834
Textiles, Apparel & Luxury Goods: 0.41%
Coach Incorporated		658		31,150
HanesBrands Incorporated		852		19,732
Michael Kors Holdings Limited †		364		13,195
Nike Incorporated Class B		3,101		182,959
PVH Corporation		182		20,839
Ralph Lauren Corporation		128		9,446
Under Armour Incorporated Class A †		431		9,379
Under Armour Incorporated Class C †		431		8,689
VF Corporation		749		43,142
				338,531
Consumer Staples: 5.39%
Beverages: 1.24%
Brown-Forman Corporation Class B		414		20,120
Constellation Brands Incorporated Class A		401		77,686
Dr Pepper Snapple Group Incorporated		429		39,086
Molson Coors Brewing Company Class B		431		37,213
Monster Beverage Corporation †		944		46,898
PepsiCo Incorporated		3,343		386,083
The Coca-Cola Company		8,998		403,560
				1,010,646
Food & Staples Retailing: 1.12%
Costco Wholesale Corporation		1,025		163,928
CVS Health Corporation		2,383		191,736
Sysco Corporation		1,152		57,980
The Kroger Company		2,135		49,788
Wal-Mart Stores Incorporated		3,456		261,550
Walgreens Boots Alliance Incorporated		1,999		156,542
Whole Foods Market Incorporated		747		31,456
				912,980
Food Products: 0.81%
Archer Daniels Midland Company		1,336		55,284
Campbell Soup Company		448		23,363

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Food Products (continued)
ConAgra Foods Incorporated		945	$	33,793
General Mills Incorporated		1,348		74,679
Hormel Foods Corporation		631		21,523
Kellogg Company		589		40,912
McCormick & Company Incorporated		265		25,840
Mondelez International Incorporated Class A		3,550		153,325
The Hershey Company		327		35,110
The J.M. Smucker Company		271		32,067
The Kraft Heinz Company		1,397		119,639
Tyson Foods Incorporated Class A		674		42,213
				657,748
Household Products: 1.04%
Church & Dwight Company Incorporated		582		30,194
Colgate-Palmolive Company		2,067		153,227
Kimberly-Clark Corporation		830		107,161
The Clorox Company		301		40,105
The Procter & Gamble Company		5,985		521,593
				852,280
Personal Products: 0.09%
Coty Incorporated Class A		1,102		20,674
The Estee Lauder Companies Incorporated Class A		524		50,294
				70,968
Tobacco: 1.09%
Altria Group Incorporated		4,520		336,604
Philip Morris International		3,634		426,813
Reynolds American Incorporated		1,937		125,982
				889,399
Energy: 3.58%
Energy Equipment & Services: 0.53%
Baker Hughes Incorporated		996		54,292
Halliburton Company		2,031		86,744
Helmerich & Payne Incorporated		254		13,802
National Oilwell Varco Incorporated		890		29,317
Schlumberger Limited		3,251		214,046
TechnipFMC plc †		1,092		29,702
Transocean Limited †		915		7,530
				435,433
Oil, Gas & Consumable Fuels: 3.05%
Anadarko Petroleum Corporation		1,311		59,441
Apache Corporation		890		42,658
Cabot Oil & Gas Corporation		1,089		27,312
Chesapeake Energy Corporation †		1,784		8,866
Chevron Corporation		4,434		462,599

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 11

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Cimarex Energy Company		222	$	20,870
Concho Resources Incorporated †		346		42,049
ConocoPhillips		2,895		127,264
Devon Energy Corporation		1,230		39,323
EOG Resources Incorporated		1,350		122,202
EQT Corporation		405		23,729
Exxon Mobil Corporation		9,916		800,519
Hess Corporation		633		27,770
Kinder Morgan Incorporated		4,492		86,067
Marathon Oil Corporation		1,989		23,570
Marathon Petroleum Corporation		1,214		63,529
Murphy Oil Corporation		379		9,714
Newfield Exploration Company †		466		13,262
Noble Energy Incorporated		1,065		30,140
Occidental Petroleum Corporation		1,789		107,107
ONEOK Incorporated		493		25,715
Phillips 66 Company		1,026		84,840
Pioneer Natural Resources Company		398		63,513
Range Resources Corporation		440		10,195
Tesoro Corporation		353		33,041
The Williams Companies Incorporated		1,934		58,562
Valero Energy Corporation		1,046		70,563
				2,484,420
Financials: 8.66%
Banks: 3.87%
Bank of America Corporation		23,288		564,967
BB&T Corporation		1,899		86,234
Citigroup Incorporated		6,442		430,841
Citizens Financial Group Incorporated		1,186		42,316
Comerica Incorporated		414		30,321
Fifth Third Bancorp		1,755		45,560
Huntington Bancshares Incorporated		2,544		34,395
JPMorgan Chase & Company		8,314		759,900
KeyCorp		2,565		48,068
M&T Bank Corporation		360		58,302
People’s United Financial Incorporated		805		14,216
PNC Financial Services Group Incorporated		1,132		141,353
Regions Financial Corporation		2,813		41,182
SunTrust Banks Incorporated		1,131		64,150
US Bancorp		3,707		192,467
Wells Fargo & Company (l)		10,525		583,190
Zions Bancorporation		474		20,813
				3,158,275
Capital Markets: 1.74%
Affiliated Managers Group Incorporated		132		21,894
Ameriprise Financial Incorporated		356		45,315
Bank of New York Mellon Corporation		2,434		124,183

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Capital Markets (continued)
BlackRock Incorporated		283	$	119,542
CBOE Holdings Incorporated		214		19,560
Charles Schwab Corporation		2,848		122,350
CME Group Incorporated		796		99,691
E*TRADE Financial Corporation †		642		24,415
Franklin Resources Incorporated		801		35,877
Intercontinental Exchange Incorporated		1,385		91,299
Invesco Limited		952		33,501
Moody’s Corporation		389		47,334
Morgan Stanley		3,332		148,474
Northern Trust Corporation		505		49,091
Raymond James Financial Incorporated		299		23,986
S&P Global Incorporated		603		88,032
State Street Corporation		827		74,207
T. Rowe Price Group Incorporated		564		41,854
The Goldman Sachs Group Incorporated		856		189,946
The NASDAQ OMX Group Incorporated		266		19,016
				1,419,567
Consumer Finance: 0.44%
American Express Company		1,757		148,010
Capital One Financial Corporation		1,130		93,341
Discover Financial Services		889		55,287
Navient Corporation		667		11,106
Synchrony Financial		1,802		53,736
				361,480
Diversified Financial Services: 0.95%
Berkshire Hathaway Incorporated Class B †		4,445		752,850
Leucadia National Corporation		757		19,803
				772,653
Insurance: 1.66%
AFLAC Incorporated		928		72,087
American International Group Incorporated		2,058		128,666
Aon plc		613		81,498
Arthur J. Gallagher & Company		420		24,045
Assurant Incorporated		127		13,169
Chubb Limited		1,093		158,900
Cincinnati Financial Corporation		350		25,358
Everest Reinsurance Group Limited		96		24,441
Lincoln National Corporation		525		35,480
Loews Corporation		646		30,239
Marsh & McLennan Companies Incorporated		1,206		94,020
MetLife Incorporated		2,527		138,833
Principal Financial Group Incorporated		627		40,172
Prudential Financial Incorporated		1,003		108,464
The Allstate Corporation		853		75,439
The Hartford Financial Services Group Incorporated		859		45,158

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 13

Security name	Shares		Value
Insurance (continued)
The Progressive Corporation		1,359	$	59,918
The Travelers Companies Incorporated		653		82,624
Torchmark Corporation		254		19,431
UnumProvident Corporation		533		24,854
Willis Towers Watson plc		297		43,202
XL Group Limited		612		26,806
				1,352,804
Health Care: 8.63%
Biotechnology: 1.75%
AbbVie Incorporated		3,724		270,027
Alexion Pharmaceuticals Incorporated †		525		63,877
Amgen Incorporated		1,722		296,580
Biogen Incorporated		499		135,409
Celgene Corporation †		1,827		237,272
Gilead Sciences Incorporated		3,058		216,445
Incyte Corporation †		397		49,986
Regeneron Pharmaceuticals Incorporated †		177		86,932
Vertex Pharmaceuticals Incorporated †		583		75,131
				1,431,659
Health Care Equipment & Supplies: 1.70%
Abbott Laboratories		4,060		197,357
Align Technology Incorporated †		176		26,421
Baxter International Incorporated		1,142		69,137
Becton Dickinson & Company		531		103,603
Boston Scientific Corporation †		3,204		88,815
C.R. Bard Incorporated		168		53,106
Danaher Corporation		1,429		120,593
Dentsply Sirona Incorporated		536		34,754
Edwards Lifesciences Corporation †		490		57,938
Hologic Incorporated †		655		29,724
IDEXX Laboratories Incorporated †		206		33,253
Intuitive Surgical Incorporated †		85		79,506
Medtronic plc		3,203		284,266
Stryker Corporation		726		100,754
The Cooper Companies Incorporated		113		27,054
Varian Medical Systems Incorporated		214		22,083
Zimmer Biomet Holdings Incorporated		471		60,476
				1,388,840
Health Care Providers & Services: 1.68%
Aetna Incorporated		776		117,820
AmerisourceBergen Corporation		388		36,678
Anthem Incorporated		620		116,641
Cardinal Health Incorporated		739		57,593
Centene Corporation †		403		32,192
Cigna Corporation		599		100,267
DaVita HealthCare Partners Incorporated †		364		23,573

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Health Care Providers & Services (continued)
Envision Healthcare Corporation †		274	$	17,172
Express Scripts Holding Company †		1,388		88,610
HCA Holdings Incorporated †		670		58,424
Henry Schein Incorporated †		185		33,859
Humana Incorporated		337		81,089
Laboratory Corporation of America Holdings †		239		36,839
McKesson Corporation		493		81,118
Patterson Companies Incorporated		190		8,921
Quest Diagnostics Incorporated		319		35,460
UnitedHealth Group Incorporated		2,255		418,122
Universal Health Services Incorporated Class B		209		25,515
				1,369,893
Health Care Technology: 0.06%
Cerner Corporation †		688		45,731
Life Sciences Tools & Services: 0.43%
Agilent Technologies Incorporated		754		44,720
Illumina Incorporated †		341		59,170
Mettler-Toledo International Incorporated †		59		34,724
PerkinElmer Incorporated		257		17,512
Thermo Fisher Scientific Incorporated		915		159,640
Waters Corporation †		187		34,378
				350,144
Pharmaceuticals: 3.01%
Allergan plc		786		191,069
Bristol-Myers Squibb Company		3,855		214,801
Eli Lilly & Company		2,272		186,986
Johnson & Johnson		6,303		833,824
Mallinckrodt plc †		232		10,396
Merck & Company Incorporated		6,400		410,176
Mylan NV †		1,079		41,887
Perrigo Company plc		335		25,299
Pfizer Incorporated		13,965		469,084
Zoetis Incorporated		1,148		71,612
				2,455,134
Industrials: 6.12%
Aerospace & Defense: 1.39%
Arconic Incorporated		1,032		23,375
General Dynamics Corporation		663		131,340
L-3 Technologies Incorporated		181		30,241
Lockheed Martin Corporation		582		161,569
Northrop Grumman Corporation		408		104,738
Raytheon Company		680		109,806
Rockwell Collins Incorporated		379		39,825
Textron Incorporated		625		29,438
The Boeing Company		1,313		259,646

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 15

Security name	Shares		Value
Aerospace & Defense (continued)
TransDigm Group Incorporated		113	$	30,382
United Technologies Corporation		1,743		212,838
				1,133,198
Air Freight & Logistics: 0.43%
C.H. Robinson Worldwide Incorporated		329		22,596
Expeditors International of Washington Incorporated		422		23,835
FedEx Corporation		576		125,182
United Parcel Service Incorporated Class B		1,612		178,271
				349,884
Airlines: 0.38%
Alaska Air Group Incorporated		289		25,941
American Airlines Group Incorporated		1,152		57,969
Delta Air Lines Incorporated		1,722		92,540
Southwest Airlines Company		1,415		87,928
United Continental Holdings Incorporated †		659		49,590
				313,968
Building Products: 0.20%
Allegion plc		222		18,009
Fortune Brands Home & Security Incorporated		360		23,486
Johnson Controls International plc		2,195		95,175
Masco Corporation		748		28,581
				165,251
Commercial Services & Supplies: 0.18%
Cintas Corporation		202		25,460
Republic Services Incorporated		537		34,223
Stericycle Incorporated †		199		15,188
Waste Management Incorporated		951		69,756
				144,627
Construction & Engineering: 0.05%
Fluor Corporation		326		14,924
Jacobs Engineering Group Incorporated		281		15,284
Quanta Services Incorporated †		346		11,390
				41,598
Electrical Equipment: 0.34%
Acuity Brands Incorporated		103		20,938
AMETEK Incorporated		538		32,587
Eaton Corporation plc		1,046		81,410
Emerson Electric Company		1,508		89,907
Rockwell Automation Incorporated		301		48,750
				273,592

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Industrial Conglomerates: 1.39%
3M Company		1,399	$	291,258
General Electric Company		20,380		550,464
Honeywell International Incorporated		1,784		237,789
Roper Industries Incorporated		238		55,104
				1,134,615
Machinery: 0.94%
Caterpillar Incorporated		1,379		148,187
Cummins Incorporated		361		58,561
Deere & Company		689		85,154
Dover Corporation		364		29,200
Flowserve Corporation		305		14,161
Fortive Corporation		705		44,662
Illinois Tool Works Incorporated		728		104,286
Ingersoll-Rand plc		599		54,743
Paccar Incorporated		822		54,285
Parker-Hannifin Corporation		311		49,704
Pentair plc		392		26,084
Snap-on Incorporated		135		21,330
Stanley Black & Decker Incorporated		358		50,381
Xylem Incorporated		420		23,281
				764,019
Professional Services: 0.18%
Equifax Incorporated		280		38,478
IHS Markit Limited †		743		32,722
Nielsen Holdings plc		786		30,387
Robert Half International Incorporated		297		14,235
Verisk Analytics Incorporated †		360		30,373
				146,195
Road & Rail: 0.55%
CSX Corporation		2,159		117,795
J.B. Hunt Transport Services Incorporated		200		18,276
Kansas City Southern		248		25,953
Norfolk Southern Corporation		677		82,391
Union Pacific Corporation		1,889		205,731
				450,146
Trading Companies & Distributors: 0.09%
Fastenal Company		677		29,470
United Rentals Incorporated †		197		22,204
W.W. Grainger Incorporated		125		22,566
				74,240
Information Technology: 13.26%
Communications Equipment: 0.58%
Cisco Systems Incorporated		11,700		366,210

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 17

Security name	Shares		Value
Communications Equipment (continued)
F5 Networks Incorporated †		151	$	19,186
Harris Corporation		284		30,979
Juniper Networks Incorporated		895		24,953
Motorola Solutions Incorporated		382		33,135
				474,463
Electronic Equipment, Instruments & Components: 0.24%
Amphenol Corporation Class A		715		52,781
Corning Incorporated		2,153		64,698
FLIR Systems Incorporated		318		11,022
TE Connectivity Limited		830		65,304
				193,805
Internet Software & Services: 2.74%
Akamai Technologies Incorporated †		404		20,123
Alphabet Incorporated Class A †		696		647,057
Alphabet Incorporated Class C †		698		634,294
eBay Incorporated †		2,355		82,237
Facebook Incorporated Class A †		5,532		835,221
VeriSign Incorporated †		206		19,150
				2,238,082
IT Services: 2.29%
Accenture plc Class A		1,451		179,460
Alliance Data Systems Corporation		129		33,113
Automatic Data Processing Incorporated		1,046		107,173
Cognizant Technology Solutions Corporation Class A		1,377		91,433
CSRA Incorporated		339		10,763
DXC Technology Company		662		50,789
Fidelity National Information Services Incorporated		774		66,100
Fiserv Incorporated †		496		60,681
Gartner Incorporated †		211		26,061
Global Payments Incorporated		356		32,154
International Business Machines Corporation		2,000		307,660
MasterCard Incorporated Class A		2,194		266,461
Paychex Incorporated		748		42,591
PayPal Holdings Incorporated †		2,614		140,293
The Western Union Company		1,102		20,993
Total System Services Incorporated		387		22,543
Visa Incorporated Class A		4,320		405,130
				1,863,398
Semiconductors & Semiconductor Equipment: 2.03%
Advanced Micro Devices Incorporated †		1,813		22,626
Analog Devices Incorporated		859		66,830
Applied Materials Incorporated		2,515		103,895
Broadcom Limited		940		219,067
Intel Corporation		11,020		371,815
KLA-Tencor Corporation		367		33,584

The accompanying notes are an integral part of these financial statements.

18 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Semiconductors & Semiconductor Equipment (continued)
Lam Research Corporation		377	$	53,319
Microchip Technology Incorporated «		536		41,368
Micron Technology Incorporated †		2,434		72,679
NVIDIA Corporation		1,393		201,372
Qorvo Incorporated †		297		18,806
QUALCOMM Incorporated		3,457		190,896
Skyworks Solutions Incorporated		431		41,354
Texas Instruments Incorporated		2,331		179,324
Xilinx Incorporated		580		37,306
				1,654,241
Software: 2.91%
Activision Blizzard Incorporated		1,623		93,436
Adobe Systems Incorporated †		1,157		163,646
Ansys Incorporated †		200		24,336
Autodesk Incorporated †		453		45,671
CA Incorporated		732		25,232
Citrix Systems Incorporated		353		28,092
Electronic Arts Incorporated †		726		76,753
Intuit Incorporated		569		75,569
Microsoft Corporation		18,067		1,245,358
Oracle Corporation		7,029		352,434
Red Hat Incorporated †		416		39,832
Salesforce.com Incorporated †		1,565		135,529
Symantec Corporation		1,423		40,200
Synopsys Incorporated †		351		25,598
				2,371,686
Technology Hardware, Storage & Peripherals: 2.47%
Apple Incorporated		12,201		1,757,188
Hewlett Packard Enterprise Company		3,896		64,635
HP Incorporated		3,938		68,836
NetApp Incorporated		634		25,392
Seagate Technology plc		694		26,893
Western Digital Corporation		682		60,425
Xerox Corporation		499		14,336
				2,017,705
Materials: 1.69%
Chemicals: 1.26%
Air Products & Chemicals Incorporated		509		72,818
Albemarle Corporation		259		27,335
CF Industries Holdings Incorporated		545		15,238
Dow Chemical Company		2,630		165,874
E.I. du Pont de Nemours & Company		2,029		163,761
Eastman Chemical Company		341		28,641
Ecolab Incorporated		611		81,110
FMC Corporation		313		22,865
International Flavors & Fragrances Incorporated		184		24,840

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 19

Security name	Shares		Value
Chemicals (continued)
LyondellBasell Industries NV Class A		773	$	65,233
Monsanto Company		1,027		121,556
PPG Industries Incorporated		599		65,866
Praxair Incorporated		669		88,676
The Mosaic Company		821		18,743
The Sherwin-Williams Company		189		66,331
				1,028,887
Construction Materials: 0.09%
Martin Marietta Materials Incorporated		146		32,497
Vulcan Materials Company		309		39,144
				71,641
Containers & Packaging: 0.19%
Avery Dennison Corporation		207		18,293
Ball Corporation		819		34,570
International Paper Company		966		54,685
Sealed Air Corporation		458		20,500
WestRock Company		587		33,259
				161,307
Metals & Mining: 0.15%
Freeport-McMoRan Incorporated †		3,115		37,411
Newmont Mining Corporation		1,248		40,423
Nucor Corporation		746		43,171
				121,005
Real Estate: 1.74%
Equity REITs: 1.71%
Alexandria Real Estate Equities Incorporated		212		25,540
American Tower Corporation		994		131,526
Apartment Investment & Management Company Class A		367		15,770
AvalonBay Communities Incorporated		321		61,687
Boston Properties Incorporated		360		44,287
Crown Castle International Corporation		856		85,754
Digital Realty Trust Incorporated		373		42,130
Equinix Incorporated		181		77,678
Equity Residential		859		56,548
Essex Property Trust Incorporated		153		39,362
Extra Space Storage Incorporated		294		22,932
Federal Realty Investment Trust		168		21,234
GGP Incorporated		1,363		32,112
HCP Incorporated		1,096		35,028
Host Hotels & Resorts Incorporated		1,731		31,625
Iron Mountain Incorporated		575		19,757
Kimco Realty Corporation		997		18,295
Mid-America Apartment Communities Incorporated		266		28,031
Prologis Incorporated		1,240		72,714

The accompanying notes are an integral part of these financial statements.

20 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Equity REITs (continued)
Public Storage Incorporated		349	$	72,777
Realty Income Corporation		638		35,205
Regency Centers Corporation		342		21,423
Simon Property Group Incorporated		730		118,085
SL Green Realty Corporation		239		25,286
The Macerich Company		278		16,141
UDR Incorporated		625		24,356
Ventas Incorporated		830		57,668
Vornado Realty Trust		403		37,842
Welltower Incorporated		857		64,146
Weyerhaeuser Company		1,758		58,893
				1,393,832
Real Estate Management & Development: 0.03%
CBRE Group Incorporated Class A †		703		25,589
Telecommunication Services: 1.28%
Diversified Telecommunication Services: 1.28%
AT&T Incorporated		14,387		542,822
CenturyLink Incorporated «		1,284		30,662
Level 3 Communications Incorporated †		685		40,621
Verizon Communications Incorporated		9,546		426,324
				1,040,429
Utilities: 1.88%
Electric Utilities: 1.18%
Alliant Energy Corporation		532		21,370
American Electric Power Company Incorporated		1,150		79,891
Duke Energy Corporation		1,638		136,920
Edison International		762		59,581
Entergy Corporation		420		32,243
Eversource Energy		742		45,047
Exelon Corporation		2,167		78,164
FirstEnergy Corporation		1,038		30,268
NextEra Energy Incorporated		1,096		153,582
PG&E Corporation		1,195		79,312
Pinnacle West Capital Corporation		261		22,227
PPL Corporation		1,599		61,817
The Southern Company		2,328		111,465
Xcel Energy Incorporated		1,187		54,460
				966,347
Independent Power & Renewable Electricity Producers: 0.04%
AES Corporation		1,544		17,154
NRG Energy Incorporated		740		12,743
				29,897

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 21

Security name						Shares		Value
Multi-Utilities: 0.62%
Ameren Corporation							568	$	31,053
CenterPoint Energy Incorporated							1,008		27,599
CMS Energy Corporation							656		30,340
Consolidated Edison Incorporated							714		57,705
Dominion Resources Incorporated							1,472		112,799
DTE Energy Company							420		44,432
NiSource Incorporated							757		19,198
Public Service Enterprise Group Incorporated							1,183		50,881
SCANA Corporation							334		22,381
Sempra Energy							586		66,072
WEC Energy Group Incorporated							738		45,298
									507,758
Water Utilities: 0.04%
American Water Works Company Incorporated							417		32,505
Total Common Stocks (Cost $26,073,811)									48,560,774
				Expiration date
Rights: 0.00%
Consumer Staples: 0.00%
Food & Staples Retailing: 0.00%
Safeway Casa Ley Contingent Value Rights †(a)(i)					1-30-2019		684		0
Safeway PDC LLC Contingent Value Rights †(a)(i)					7-30-2017		684		12
Total Rights (Cost $714)									12
	Interest rate			Maturity date		Principal
U.S. Treasury Securities: 38.66%
U.S. Treasury Bond		2.75	%		8-15-2042	$	126,000		124,779
U.S. Treasury Bond		2.75			11-15-2042		126,000		124,671
U.S. Treasury Bond		2.88			5-15-2043		182,000		183,976
U.S. Treasury Bond		3.00			5-15-2042		84,000		87,098
U.S. Treasury Bond		3.13			11-15-2041		66,000		69,970
U.S. Treasury Bond		3.13			2-15-2042		87,000		92,237
U.S. Treasury Bond		3.13			2-15-2043		129,000		136,433
U.S. Treasury Bond		3.50			2-15-2039		61,000		69,004
U.S. Treasury Bond		3.63			8-15-2043		156,000		179,686
U.S. Treasury Bond		3.75			8-15-2041		68,000		79,698
U.S. Treasury Bond		3.75			11-15-2043		187,000		220,098
U.S. Treasury Bond		3.88			8-15-2040		71,000		84,582
U.S. Treasury Bond		4.25			5-15-2039		57,000		71,488
U.S. Treasury Bond		4.25			11-15-2040		74,000		93,081
U.S. Treasury Bond		4.38			2-15-2038		32,000		40,818
U.S. Treasury Bond		4.38			11-15-2039		57,000		72,726
U.S. Treasury Bond		4.38			5-15-2040		83,000		106,042
U.S. Treasury Bond		4.38			5-15-2041		65,000		83,418
U.S. Treasury Bond		4.50			2-15-2036		70,000		90,467
U.S. Treasury Bond		4.50			5-15-2038		36,000		46,669

The accompanying notes are an integral part of these financial statements.

22 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Bond		4.50	%		8-15-2039	$	59,000	$	76,516
U.S. Treasury Bond		4.63			2-15-2040		102,000		134,636
U.S. Treasury Bond		4.75			2-15-2037		24,000		32,009
U.S. Treasury Bond		4.75			2-15-2041		88,000		118,611
U.S. Treasury Bond		5.00			5-15-2037		29,000		39,834
U.S. Treasury Bond		5.25			11-15-2028		45,000		57,950
U.S. Treasury Bond		5.25			2-15-2029		33,000		42,627
U.S. Treasury Bond		5.38			2-15-2031		70,000		94,142
U.S. Treasury Bond		5.50			8-15-2028		35,000		45,776
U.S. Treasury Bond		6.13			11-15-2027		49,000		66,192
U.S. Treasury Bond		6.13			8-15-2029		25,000		34,845
U.S. Treasury Bond		6.25			5-15-2030		45,000		64,165
U.S. Treasury Bond		6.38			8-15-2027		21,000		28,720
U.S. Treasury Bond		6.88			8-15-2025		21,000		28,361
U.S. Treasury Note		0.63			4-30-2018		164,000		163,129
U.S. Treasury Note		0.63			6-30-2018		117,000		116,260
U.S. Treasury Note		0.75			2-28-2018		153,000		152,522
U.S. Treasury Note		0.75			3-31-2018		133,000		132,501
U.S. Treasury Note		0.75			4-15-2018		127,000		126,484
U.S. Treasury Note		0.75			4-30-2018		119,000		118,489
U.S. Treasury Note		0.75			7-31-2018		117,000		116,333
U.S. Treasury Note		0.75			8-31-2018		118,000		117,221
U.S. Treasury Note		0.75			9-30-2018		118,000		117,184
U.S. Treasury Note		0.75			10-31-2018		118,000		117,092
U.S. Treasury Note		0.75			2-15-2019		107,000		105,968
U.S. Treasury Note		0.75			7-15-2019		108,000		106,604
U.S. Treasury Note		0.75			8-15-2019		108,000		106,540
U.S. Treasury Note		0.88			3-31-2018		118,000		117,659
U.S. Treasury Note		0.88			5-31-2018		119,000		118,582
U.S. Treasury Note		0.88			7-15-2018		117,000		116,502
U.S. Treasury Note		0.88			10-15-2018		106,000		105,387
U.S. Treasury Note		0.88			4-15-2019		109,000		108,051
U.S. Treasury Note		0.88			5-15-2019		110,000		108,986
U.S. Treasury Note		0.88			6-15-2019		108,000		106,949
U.S. Treasury Note		0.88			7-31-2019		76,000		75,198
U.S. Treasury Note		0.88			9-15-2019		106,000		104,754
U.S. Treasury Note		1.00			3-15-2018		125,000		124,795
U.S. Treasury Note		1.00			5-15-2018		124,000		123,700
U.S. Treasury Note		1.00			5-31-2018		152,000		151,608
U.S. Treasury Note		1.00			8-15-2018		117,000		116,625
U.S. Treasury Note		1.00			9-15-2018		117,000		116,570
U.S. Treasury Note		1.00			11-30-2018		103,000		102,501
U.S. Treasury Note		1.00			3-15-2019		107,000		106,335
U.S. Treasury Note		1.00			6-30-2019		58,000		57,565
U.S. Treasury Note		1.00			8-31-2019		79,000		78,315
U.S. Treasury Note		1.00			9-30-2019		148,000		146,624
U.S. Treasury Note		1.00			10-15-2019		109,000		107,974
U.S. Treasury Note		1.00			11-15-2019		96,000		94,987
U.S. Treasury Note		1.00			11-30-2019		142,000		140,497
U.S. Treasury Note		1.13			6-15-2018		124,000		123,806

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 23

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.13	%		1-15-2019	$	106,000	$	105,619
U.S. Treasury Note		1.13			1-31-2019		119,000		118,572
U.S. Treasury Note		1.13			2-28-2019		118,000		117,558
U.S. Treasury Note		1.13			5-31-2019		65,000		64,700
U.S. Treasury Note		1.13			12-31-2019		95,000		94,210
U.S. Treasury Note		1.13			3-31-2020		93,000		92,030
U.S. Treasury Note		1.13			4-30-2020		104,000		102,854
U.S. Treasury Note		1.13			2-28-2021		226,000		221,400
U.S. Treasury Note		1.13			6-30-2021		228,000		222,505
U.S. Treasury Note		1.13			7-31-2021		153,000		149,115
U.S. Treasury Note		1.13			8-31-2021		153,000		148,960
U.S. Treasury Note		1.13			9-30-2021		152,000		147,832
U.S. Treasury Note		1.25			10-31-2018		165,000		164,807
U.S. Treasury Note		1.25			11-15-2018		108,000		107,861
U.S. Treasury Note		1.25			11-30-2018		155,000		154,800
U.S. Treasury Note		1.25			12-15-2018		108,000		107,840
U.S. Treasury Note		1.25			12-31-2018		120,000		119,808
U.S. Treasury Note		1.25			1-31-2019		125,000		124,785
U.S. Treasury Note		1.25			4-30-2019		51,000		50,876
U.S. Treasury Note		1.25			10-31-2019		75,000		74,698
U.S. Treasury Note		1.25			1-31-2020		225,000		223,620
U.S. Treasury Note		1.25			2-29-2020		152,000		151,009
U.S. Treasury Note		1.25			3-31-2021		226,000		222,239
U.S. Treasury Note		1.25			10-31-2021		151,000		147,473
U.S. Treasury Note		1.25			7-31-2023		125,000		119,316
U.S. Treasury Note		1.38			6-30-2018		127,000		127,114
U.S. Treasury Note		1.38			7-31-2018		151,000		151,118
U.S. Treasury Note		1.38			9-30-2018		208,000		208,081
U.S. Treasury Note		1.38			11-30-2018		74,000		74,023
U.S. Treasury Note		1.38			12-31-2018		91,000		91,036
U.S. Treasury Note		1.38			2-28-2019		121,000		121,014
U.S. Treasury Note		1.38			12-15-2019		111,000		110,762
U.S. Treasury Note		1.38			1-15-2020		109,000		108,723
U.S. Treasury Note		1.38			1-31-2020		101,000		100,724
U.S. Treasury Note		1.38			2-15-2020		109,000		108,651
U.S. Treasury Note		1.38			2-29-2020		228,000		227,198
U.S. Treasury Note		1.38			3-31-2020		226,000		225,135
U.S. Treasury Note		1.38			4-30-2020		226,000		224,976
U.S. Treasury Note		1.38			5-31-2020		106,000		105,482
U.S. Treasury Note		1.38			8-31-2020		256,000		254,180
U.S. Treasury Note		1.38			9-30-2020		256,000		254,090
U.S. Treasury Note		1.38			10-31-2020		232,000		230,097
U.S. Treasury Note		1.38			1-31-2021		232,000		229,553
U.S. Treasury Note		1.38			4-30-2021		226,000		223,113
U.S. Treasury Note		1.38			5-31-2021		226,000		222,857
U.S. Treasury Note		1.38			6-30-2023		126,000		121,290
U.S. Treasury Note		1.38			8-31-2023		124,000		119,108
U.S. Treasury Note		1.38			9-30-2023		90,000		86,372
U.S. Treasury Note		1.50			8-31-2018		200,000		200,375
U.S. Treasury Note		1.50			12-31-2018		144,000		144,315

The accompanying notes are an integral part of these financial statements.

24 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.50	%		1-31-2019	$	161,000	$	161,333
U.S. Treasury Note		1.50			2-28-2019		147,000		147,304
U.S. Treasury Note		1.50			3-31-2019		60,000		60,150
U.S. Treasury Note		1.50			5-31-2019		158,000		158,352
U.S. Treasury Note		1.50			10-31-2019		225,000		225,281
U.S. Treasury Note		1.50			11-30-2019		226,000		226,212
U.S. Treasury Note		1.50			5-31-2020		226,000		225,656
U.S. Treasury Note		1.50			1-31-2022		128,000		126,055
U.S. Treasury Note		1.50			2-28-2023		126,000		122,643
U.S. Treasury Note		1.50			3-31-2023		126,000		122,530
U.S. Treasury Note		1.50			8-15-2026		102,000		95,426
U.S. Treasury Note		1.63			3-31-2019		154,000		154,698
U.S. Treasury Note		1.63			4-30-2019		159,000		159,689
U.S. Treasury Note		1.63			6-30-2019		157,000		157,724
U.S. Treasury Note		1.63			7-31-2019		155,000		155,714
U.S. Treasury Note		1.63			8-31-2019		229,000		230,047
U.S. Treasury Note		1.63			12-31-2019		225,000		225,826
U.S. Treasury Note		1.63			6-30-2020		225,000		225,378
U.S. Treasury Note		1.63			7-31-2020		253,000		253,297
U.S. Treasury Note		1.63			11-30-2020		155,000		154,891
U.S. Treasury Note		1.63			8-15-2022		117,000		115,410
U.S. Treasury Note		1.63			11-15-2022		150,000		147,480
U.S. Treasury Note		1.63			4-30-2023		128,000		125,215
U.S. Treasury Note		1.63			5-31-2023		128,000		125,160
U.S. Treasury Note		1.63			10-31-2023		90,000		87,641
U.S. Treasury Note		1.63			2-15-2026		102,000		96,928
U.S. Treasury Note		1.63			5-15-2026		105,000		99,541
U.S. Treasury Note		1.75			10-31-2018		66,000		66,369
U.S. Treasury Note		1.75			9-30-2019		228,000		229,657
U.S. Treasury Note		1.75			10-31-2020		148,000		148,607
U.S. Treasury Note		1.75			12-31-2020		232,000		232,643
U.S. Treasury Note		1.75			11-30-2021		134,000		133,644
U.S. Treasury Note		1.75			2-28-2022		129,000		128,441
U.S. Treasury Note		1.75			3-31-2022		128,000		127,345
U.S. Treasury Note		1.75			4-30-2022		126,000		125,267
U.S. Treasury Note		1.75			5-15-2022		111,000		110,380
U.S. Treasury Note		1.75			9-30-2022		144,000		142,678
U.S. Treasury Note		1.75			1-31-2023		129,000		127,377
U.S. Treasury Note		1.75			5-15-2023		226,000		222,592
U.S. Treasury Note		1.88			6-30-2020		86,000		86,800
U.S. Treasury Note		1.88			11-30-2021		128,000		128,325
U.S. Treasury Note		1.88			1-31-2022		157,000		157,184
U.S. Treasury Note		1.88			2-28-2022		153,000		153,167
U.S. Treasury Note		1.88			5-31-2022		128,000		127,980
U.S. Treasury Note		1.88			8-31-2022		142,000		141,701
U.S. Treasury Note		1.88			10-31-2022		143,000		142,475
U.S. Treasury Note		2.00			7-31-2020		101,000		102,247
U.S. Treasury Note		2.00			9-30-2020		106,000		107,284
U.S. Treasury Note		2.00			11-30-2020		122,000		123,420
U.S. Treasury Note		2.00			2-28-2021		136,000		137,509

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 25

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		2.00	%		5-31-2021	$	146,000	$	147,477
U.S. Treasury Note		2.00			8-31-2021		127,000		128,106
U.S. Treasury Note		2.00			10-31-2021		126,000		126,999
U.S. Treasury Note		2.00			11-15-2021		178,000		179,488
U.S. Treasury Note		2.00			12-31-2021		155,000		156,114
U.S. Treasury Note		2.00			2-15-2022		133,000		133,992
U.S. Treasury Note		2.00			7-31-2022		144,000		144,624
U.S. Treasury Note		2.00			11-30-2022		129,000		129,267
U.S. Treasury Note		2.00			2-15-2023		220,000		220,069
U.S. Treasury Note		2.00			2-15-2025		289,000		284,970
U.S. Treasury Note		2.00			8-15-2025		220,000		216,219
U.S. Treasury Note		2.00			11-15-2026		170,000		165,783
U.S. Treasury Note		2.13			8-31-2020		138,000		140,205
U.S. Treasury Note		2.13			1-31-2021		132,000		134,006
U.S. Treasury Note		2.13			6-30-2021		142,000		144,036
U.S. Treasury Note		2.13			8-15-2021		178,000		180,489
U.S. Treasury Note		2.13			9-30-2021		128,000		129,735
U.S. Treasury Note		2.13			12-31-2021		126,000		127,614
U.S. Treasury Note		2.13			6-30-2022		126,000		127,353
U.S. Treasury Note		2.13			12-31-2022		129,000		130,018
U.S. Treasury Note		2.13			11-30-2023		110,000		110,348
U.S. Treasury Note		2.13			2-29-2024		128,000		128,120
U.S. Treasury Note		2.13			5-15-2025		234,000		232,501
U.S. Treasury Note		2.25			7-31-2018		49,000		49,498
U.S. Treasury Note		2.25			3-31-2021		135,000		137,663
U.S. Treasury Note		2.25			4-30-2021		142,000		144,757
U.S. Treasury Note		2.25			7-31-2021		194,000		197,683
U.S. Treasury Note		2.25			12-31-2023		127,000		128,235
U.S. Treasury Note		2.25			1-31-2024		127,000		128,161
U.S. Treasury Note		2.25			11-15-2024		290,000		291,540
U.S. Treasury Note		2.25			11-15-2025		219,000		219,026
U.S. Treasury Note		2.25			2-15-2027		196,000		195,127
U.S. Treasury Note		2.38			5-31-2018		58,000		58,562
U.S. Treasury Note		2.38			6-30-2018		74,000		74,798
U.S. Treasury Note		2.38			12-31-2020		123,000		125,974
U.S. Treasury Note		2.38			8-15-2024		289,000		293,335
U.S. Treasury Note		2.50			8-15-2023		190,000		194,965
U.S. Treasury Note		2.50			5-15-2024		281,000		287,827
U.S. Treasury Note		2.63			4-30-2018		62,000		62,668
U.S. Treasury Note		2.63			8-15-2020		220,000		226,884
U.S. Treasury Note		2.63			11-15-2020		355,000		366,357
U.S. Treasury Note		2.75			2-28-2018		71,000		71,693
U.S. Treasury Note		2.75			2-15-2019		128,000		130,845
U.S. Treasury Note		2.75			11-15-2023		251,000		261,207
U.S. Treasury Note		2.75			2-15-2024		217,000		225,697
U.S. Treasury Note		2.88			3-31-2018		80,000		80,931
U.S. Treasury Note		3.13			5-15-2019		142,000		146,576
U.S. Treasury Note		3.13			5-15-2021		155,000		163,071
U.S. Treasury Note		3.38			11-15-2019		159,000		166,118
U.S. Treasury Note		3.50			5-15-2020		138,000		145,579

The accompanying notes are an integral part of these financial statements.

26 Wells Fargo VT Index Asset Allocation Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		3.63	%		8-15-2019	$	145,000	$	151,706
U.S. Treasury Note		3.63			2-15-2020		191,000		201,378
U.S. Treasury Note		3.63			2-15-2021		199,000		212,534
U.S. Treasury Note		3.75			11-15-2018		141,000		145,577
U.S. Treasury Note		3.88			5-15-2018		65,000		66,442
U.S. Treasury Note		4.00			8-15-2018		74,000		76,214
U.S. Treasury Note		6.00			2-15-2026		42,000		54,439
U.S. Treasury Note		6.25			8-15-2023		35,000		43,538
U.S. Treasury Note		6.50			11-15-2026		28,000		38,017
U.S. Treasury Note		6.63			2-15-2027		18,000		24,761
U.S. Treasury Note		6.75			8-15-2026		21,000		28,811
U.S. Treasury Note		7.13			2-15-2023		24,000		30,575
U.S. Treasury Note		7.25			8-15-2022		24,000		30,223
U.S. Treasury Note		7.50			11-15-2024		22,000		30,080
U.S. Treasury Note		7.63			11-15-2022		12,000		15,472
U.S. Treasury Note		7.63			2-15-2025		20,000		27,732
U.S. Treasury Note		7.88			2-15-2021		15,000		18,240
U.S. Treasury Note		8.00			11-15-2021		48,000		60,469
U.S. Treasury Note		8.13			8-15-2019		29,000		33,060
U.S. Treasury Note		8.13			5-15-2021		17,000		21,049
U.S. Treasury Note		8.13			8-15-2021		15,000		18,773
U.S. Treasury Note		8.50			2-15-2020		15,000		17,708
U.S. Treasury Note		8.75			5-15-2020		12,000		14,429
U.S. Treasury Note		8.75			8-15-2020		27,000		32,873
U.S. Treasury Note		8.88			2-15-2019		29,000		32,506
U.S. Treasury Note		9.00			11-15-2018		18,000		19,882
U.S. Treasury Note		9.13			5-15-2018		16,000		17,079
Total U.S. Treasury Securities (Cost $31,516,125)									31,540,046
	Yield					Shares
Short-Term Investments: 1.71%
Investment Companies: 1.71%
Securities Lending Cash Investment LLC (l)(r)(u)		1.39					94,690		94,700
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.86					1,297,633		1,297,633
Total Short-Term Investments (Cost $1,392,333)									1,392,333
	Interest rate					Principal
Treasury Debt: 0.16%
U.S. Treasury Bill #(z)		0.94			9-21-2017	$	132,000		131,717
Total Treasury Debt (Cost $131,715)									131,717

Total investments in securities (Cost $59,114,698) *	100.06	%		81,624,882
Other assets and liabilities, net	(0.06	)		(50,981	)
Total net assets	100.00	%	$	81,573,901

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 27

† Non-income-earning security

« All or a portion of this security is on loan.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

(i) Illiquid security

(r) The investment is a non-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the 7-day annualized yield at period end.

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

(z) Zero coupon security. The rate represents the current yield to maturity.

* Cost for federal income tax purposes is $62,088,885 and unrealized gains (losses) consists of:

Gross unrealized gains	$	23,485,543
Gross unrealized losses		(3,949,546	)
Net unrealized gains	$	19,535,997

The accompanying notes are an integral part of these financial statements.

28 Wells Fargo VT Index Asset Allocation Fund Statement of assets and liabilities—June 30, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $92,610 of securities loaned), at value (cost $57,416,051)	$	79,649,359
In affiliated securities, at value (cost $1,698,647)		1,975,523
Total investments, at value (cost $59,114,698)		81,624,882
Cash		248
Receivable for Fund shares sold		637
Receivable for dividends and interest		196,897
Receivable for daily variation margin on open futures contracts		20,666
Receivable for securities lending income		23
Prepaid expenses and other assets		284
Total assets		81,843,637
Liabilities
Payable for Fund shares redeemed		63,051
Payable upon receipt of securities loaned		94,700
Payable for daily variation margin on open futures contracts		1,375
Management fee payable		31,351
Distribution fee payable		17,977
Administration fee payable		5,752
Shareholder report expenses payable		18,571
Custodian and accounting fees payable		15,671
Accrued expenses and other liabilities		21,288
Total liabilities		269,736
Total net assets	$	81,573,901
NET ASSETS CONSIST OF
Paid-in capital	$	54,942,945
Undistributed net investment income		8,449
Accumulated net realized gains on investments		4,093,037
Net unrealized gains on investments		22,529,470
Total net assets	$	81,573,901
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	81,573,901
Shares outstanding – Class 21		4,050,470
Net asset value per share – Class 2		$20.14

¹  The Fund has an unlimited number of authorized shares.

The accompanying notes are an integral part of these financial statements.

Statement of operations—six months ended June 30, 2017 (unaudited) Wells Fargo VT Index Asset Allocation Fund 29

Investment income
Dividends (net of foreign withholding taxes of $21)	$	493,381
Interest		246,476
Income from affiliated securities		10,877
Securities lending income, net		151
Total investment income		750,885
Expenses
Management fee		243,887
Administration fee
Class 2		32,518
Distribution fee
Class 2		101,620
Custody and accounting fees		27,534
Professional fees		26,972
Shareholder report expenses		17,984
Trustees’ fees and expenses		10,506
Other fees and expenses		12,184
Total expenses		473,205
Less: Fee waivers and/or expense reimbursements		(66,726	)
Net expenses		406,479
Net investment income		344,406
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		2,278,397
Affiliated securities		23,002
Futures transactions		(34,402	)
Net realized gains on investments		2,266,997
Net change in unrealized gains (losses) on:
Unaffiliated securities		1,836,971
Affiiliated securities		(20,231	)
Futures transactions		17,233
Net change in unrealized gains (losses) on investments		1,833,973
Net realized and unrealized gains (losses) on investments		4,100,970
Net increase in net assets resulting from operations	$	4,445,376

The accompanying notes are an integral part of these financial statements.

30 Wells Fargo VT Index Asset Allocation Fund Statement of changes in net assets

	Six months ended June 30, 2017 (unaudited)						Year ended December 31, 2016
Operations
Net investment income				$	344,406					$	749,200
Net realized gains on investments					2,266,997						3,516,592
Net change in unrealized gains (losses) on investments					1,833,973						1,691,580
Net increase in net assets resulting from operations					4,445,376						5,957,372
Distributions to shareholders from
Net investment income – Class 2					(338,457	)					(720,605	)
Net realized gains – Class 2					0						(2,289,129	)
Total distributions to shareholders					(338,457	)					(3,009,734	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		104,117			2,055,239			333,800			6,245,984
Reinvestment of distributions – Class 2		16,936			338,457			162,349			3,009,734
Payment for shares redeemed – Class 2		(325,601	)		(6,432,194	)		(653,618	)		(12,192,875	)
Net decrease in net assets resulting from capital share transactions					(4,038,498	)					(2,937,157	)
Total increase in net assets					68,421						10,481
Net assets
Beginning of period					81,505,480						81,494,999
End of period				$	81,573,901					$	81,505,480
Undistributed net investment income				$	8,449					$	2,500

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo VT Index Asset Allocation Fund 31

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 2				2016			2015			2014			2013			2012
Net asset value, beginning of period		$19.16			$18.47			$18.43			$15.85			$13.47			$12.09
Net investment income		0.08	1		0.17			0.18			0.27			0.24			0.21
Net realized and unrealized gains (losses) on investments		0.98			1.22			0.05			2.57			2.39			1.36
Total from investment operations		1.06			1.39			0.23			2.84			2.63			1.57
Distributions to shareholders from
Net investment income		(0.08	)		(0.17	)		(0.19	)		(0.26	)		(0.25	)		(0.19	)
Net realized gains		0.00			(0.53	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.08	)		(0.70	)		(0.19	)		(0.26	)		(0.25	)		(0.19	)
Net asset value, end of period		$20.14			$19.16			$18.47			$18.43			$15.85			$13.47
Total return		5.55	%		7.67	%		1.25	%		18.06	%		19.63	%		13.03	%
Ratios to average net assets (annualized)
Gross expenses		1.16	%		1.10	%		1.10	%		1.02	%		1.11	%		1.13	%
Net expenses		1.00	%		1.00	%		1.00	%		0.99	%		1.00	%		1.00	%
Net investment income		0.85	%		0.93	%		0.95	%		1.58	%		1.57	%		1.58	%
Supplemental data
Portfolio turnover rate		3	%		15	%		44	%		3	%		11	%		8	%
Net assets, end of period (000s omitted)		$81,574			$81,505			$81,495			$92,146			$86,935			$84,791

¹  Calculated based upon average shares outstanding.

The accompanying notes are an integral part of these financial statements.

32 Wells Fargo VT Index Asset Allocation Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Variable 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 Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Index Asset Allocation Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of 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 and futures 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.

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally 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 of the Fund. 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 of Wells Fargo Funds Management, LLC (“Funds Management”). 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 or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer 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.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or

Notes to financial statements (unaudited) Wells Fargo VT Index Asset Allocation Fund 33

may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Futures contracts

The Fund is subject to interest rate risk and equity price risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates and security values. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

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. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

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.

34 Wells Fargo VT Index Asset Allocation Fund Notes to financial statements (unaudited)

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 June 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	5,956,810	$	0	$	0	$	5,956,810
Consumer staples		4,394,021		0		0		4,394,021
Energy		2,919,853		0		0		2,919,853
Financials		7,064,779		0		0		7,064,779
Health care		7,041,401		0		0		7,041,401
Industrials		4,991,333		0		0		4,991,333
Information technology		10,813,380		0		0		10,813,380
Materials		1,382,840		0		0		1,382,840
Real estate		1,419,421		0		0		1,419,421
Telecommunication services		1,040,429		0		0		1,040,429
Utilities		1,536,507		0		0		1,536,507
Rights
Consumer staples		0		12		0		12
U.S. Treasury securities		31,540,046		0		0		31,540,046
Short-term investments
Investment companies		1,297,633		0		0		1,297,633
U.S. Treasury securities		131,717		0		0		131,717
Investments measured at net asset value*								94,700
		81,530,170		12		0		81,624,882
Futures contracts		20,666		0		0		20,666
Total assets	$	81,550,836	$	12	$	0	$	81,645,548
Liabilities
Futures contracts	$	1,375	$	0	$	0	$	1,375
Total liabilities	$	1.375	$	0	$	0	$	1,375

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $94,700 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements (unaudited) Wells Fargo VT Index Asset Allocation Fund 35

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 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, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 0.60% and declining to 0.43% as the average daily net assets of the Fund increase. For the six months ended June 30, 2017, the management fee was equivalent to an annual rate of 0.60% 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. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fee

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 a class level administration fee of 0.08% which is calculated based on the average daily net assets of Class 2 shares.

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 April 30, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.00% for Class 2. 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 six months ended June 30, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $75 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

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$1,941,134	$540,476	$1,570,813	$4,478,837

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 do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchase and sales amounts shown.

36 Wells Fargo VT Index Asset Allocation Fund Notes to financial statements (unaudited)

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 in issuers that were either affiliates of the Fund at the beginning of the period or the end of the period.

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Value, end of period		Income from affiliated securities		Realized gains
Wells Fargo & Company		11,438		0		913		10,525	$	583,190	$	8,239	$	23,002

7. DERIVATIVE TRANSACTIONS

During the six months ended June 30, 2017, the Fund entered into futures contracts to gain market exposure to certain asset classes consistent with an active asset allocation strategy.

At June 30, 2017, the Fund had long/short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at June 30, 2017		Unrealized gains (losses)
9-15-2017	Goldman Sachs	3 Long	S&P 500 E-Mini Index	$	363,135	$	(1,340	)
9-20-2017	Goldman Sachs	73 Short	10-Year U.S. Treasury Notes		9,163,781		24,966
9-29-2017	Goldman Sachs	8 Long	5-Year U.S. Treasury Notes		942,688		(4,340	)

The Fund had an average notional amount of $1,012,583 and $5,284,061 in long and short futures contracts, respectively, during the six months ended June 30, 2017.

A summary of the location of derivative instruments on the financial statements by primary risk exposure is outlined following tables.

The fair value of derivative instruments as of June 30, 2017 was as follows for the Fund:

	Asset derivatives				Liability derivatives
	Statement of Assets and Liabilities location	Fair value			Statement of Assets and Liabilities location	Fair value
Interest rate risk	Receivable for daily variation margin on open futures contracts	$	20,531	*	Payable for daily variation margin on open futures contracts	$	1,375	*
Equity risk	Receivable for daily variation margin on open futures contracts		135	*	Payable for daily variation margin on open futures contracts		0	*
		$	20,666			$	1,375

* Only the current day’s variation margin as of June 30, 2017 is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2017 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains (losses) on derivatives
Interest rate risk	$	(61,684	)	$	17,728
Equity risk		27,282			(495	)
	$	(34,402	)	$	17,233

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to

Notes to financial statements (unaudited) Wells Fargo VT Index Asset Allocation Fund 37

cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	Goldman Sachs	$20,666	($	1,375	)	$	0	$	19,291

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged		Net amount of liabilities
Futures – variation margin	Goldman Sachs	$1,375	($	1,375	)	$	0	$	0

8. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) 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.

For the six months ended June 30, 2017, there were no borrowings by the Fund under the agreement.

9. 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.

10. 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. Management has evaluated the amendments to Regulation S-X and its adoption will result in enhanced financial disclosures in the Fund’s financial statements. Management continues to evaluate the reporting requirements for the new form types (compliance date is June 1, 2018) and the implementation of the liquidity risk management program (compliance date is December 1, 2018).

11. SUBSEQUENT DISTRIBUTIONS

On July 17, 2017, the Fund declared distributions from short-term capital gains and long-term capital gains to shareholders of record on July 14, 2017. The per share amounts payable on July 18, 2017 were as follows:

	Short-term capital gains	Long-term capital gains
Class 2	$0.10583	$0.74838

These distributions are not reflected in the accompanying financial statements.

38 Wells Fargo VT Index Asset Allocation Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-6959, 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 VT Index Asset Allocation Fund 39

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 148 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 (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	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.	Asset Allocation Trust
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.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. 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).	CIGNA Corporation; Asset Allocation Trust
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.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	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

40 Wells Fargo VT Index Asset Allocation Fund Other information (unaudited)

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
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.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and 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. 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.	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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors (Blackrock) from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	Asset Allocation Trust
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT Index Asset Allocation Fund 41

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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.

¹  Jeremy DePalma acts as Treasurer of 79 funds in the Fund Complex and Assistant Treasurer of 69 funds in the Fund Complex.

²  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-260-5969 or by visiting the website at wellsfargofunds.com.

42 Wells Fargo VT Index Asset Allocation Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Variable Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo VT Index Asset Allocation Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by

Other information (unaudited) Wells Fargo VT Index Asset Allocation Fund 43

Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Index Asset Allocation Blended Index, for the one- and five-year periods under review, but lower than its benchmark for the three- and ten-year periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratio and its various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratio of funds in a class-specific expense group that was determined by Broadridge to be similar to the Fund (the “Group”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Group and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratio of the Fund was in range of the median net operating expense ratio of the expense Group.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rate”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Fund’s Management Rate with the average contractual investment management fee rate of funds in the expense Group at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rate of the Fund was lower than the sum of these average rate for the Fund’s expense Group.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of

44 Wells Fargo VT Index Asset Allocation Fund Other information (unaudited)

profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo VT Index Asset Allocation Fund 45

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

PJSC —  Public Joint Stock Company

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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: fundservice@wellsfargo.com

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 1-800-260-5969 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.

304904 08-17

SVT2/SAR136 06-17

Semi-Annual Report

June 30, 2017

Wells Fargo VT International Equity Fund

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	10
Statement of operations	11
Statement of changes in net assets	12
Financial highlights	13
Notes to financial statements	15
Other information	22
List of abbreviations	29

The views expressed and any forward-looking statements are as of June 30, 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 VT International Equity Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty.

Dear Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo VT International Equity Fund for the six-month period that ended June 30, 2017. Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty. U.S. and international stocks returned 9.34% and 14.10% for the six-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 -2.27%.

Economies improved in the first quarter of 2017, supporting markets.

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. In March, U.S. Federal Reserve (Fed) officials raised their target interest rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target interest 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 because they benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market.

Steady advancement in many markets marked the second quarter of 2017.

With steady, modest economic growth both in the U.S. and abroad during the second quarter of 2017, most equity markets in the U.S. and abroad advanced with few signs of volatility. Within the economy, U.S. inflation trended lower despite the unemployment rate continuing to decline. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, Fed officials in June again raised their target interest rate by a quarter percentage point to between 1.00% and 1.25%. They also released a blueprint for reducing the Fed’s balance sheet, which had ballooned due to quantitative easing. Although economic momentum increased in Europe, the European Central Bank held its rates steady at low levels because underlying inflation remained subdued. In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar.

¹  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.

²  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted 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.

³  The Bloomberg 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) Wells Fargo VT International Equity Fund 3

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. 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.

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

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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT International Equity 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

Venkateshwar Lal^‡

Dale A. Winner, CFA^®

Average annual total returns (%) as of June 30, 2016¹

								Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		Gross		Net3
Class 1	8-17-1998		23.32		8.80		0.96		0.96		0.70
Class 2	7-31-2002		22.97		8.51		0.71		1.21		0.95
MSCI ACWI ex USA Index (Net)4	–		20.45		7.22		1.13		–		–

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If sales loads or charges had been reflected, performance would have been lower.

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.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. 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 smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT International Equity Fund 5

Ten largest holdings (%) as of June 30, 20175
SK Telecom Company Limited	3.68%
Novartis AG	3.56%
Den Norske Bank ASA	3.54%
Vodafone Group plc	3.47%
CIMB Group Holdings Bhd	3.26%
Bayer AG	3.08%
Eni SpA	3.08%
Metro AG	2.95%
Compagnie de Saint-Gobain SA	2.93%
China Mobile Limited	2.78%

Sector distribution as of June 30, 2017⁶

Country allocation as of June 30, 2017⁶

^‡  Mr. Lal became a portfolio manager of the Fund on June 30, 2017.

¹  Historical performance shown for all classes of the Fund prior to July 19, 2010, is based on the performance of the Fund’s predecessor, Evergreen VA International Equity Fund.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% 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.

³  The manager has contractually committed through April 30, 2018, 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 0.69% for Class 1 and 0.94% for Class 2. 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.

⁴  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization weighted 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.

⁵  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.

⁶  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.

6 Wells Fargo VT International Equity Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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 January 1, 2017 to June 30, 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 separate account charges assessed by participating insurance companies. 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 1-1-2017		Ending account value 6-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class 1
Actual	$	1,000.00	$	1,122.45	$	3.63		0.69	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.37	$	3.46		0.69	%
Class 2
Actual	$	1,000.00	$	1,119.10	$	4.94		0.94	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.13	$	4.71		0.94	%

¹ 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—June 30, 2017 (unaudited) Wells Fargo VT International Equity Fund 7

Security name	Shares		Value
Common Stocks: 89.30%
Brazil: 2.08%
Cosan Limited Class A (Energy, Oil, Gas & Consumable Fuels)		1,073,356	$	6,880,212
Canada: 2.18%
Lundin Mining Corporation (Materials, Metals & Mining)		1,270,151		7,218,548
China: 6.24%
China Everbright Limited (Financials, Capital Markets)		1,566,000		3,409,820
China Mobile Limited (Telecommunication Services, Wireless Telecommunication Services)		867,500		9,205,615
Industrial & Commercial Bank of China Limited H Shares (Financials, Banks)		1,461,000		986,170
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health Care, Health Care Providers & Services)		1,577,200		4,696,783
Xinyi Solar Holdings Limited (Information Technology, Semiconductors & Semiconductor Equipment)		4,470,000		1,276,742
Xtep International Holdings Limited (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		2,717,179		1,047,552
				20,622,682
Denmark: 0.94%
Novo Nordisk AS Class B (Health Care, Pharmaceuticals)		72,427		3,101,622
France: 2.93%
Compagnie de Saint-Gobain SA (Industrials, Building Products)		181,269		9,685,159
Germany: 11.99%
Bayer AG (Health Care, Pharmaceuticals)		78,833		10,192,424
Metro AG (Consumer Staples, Food & Staples Retailing)		289,018		9,756,159
Muenchener Rueckversicherungs Gesellschaft AG (Financials, Insurance)		22,384		4,513,656
Rheinmetall AG (Industrials, Industrial Conglomerates)		53,003		5,031,865
SAP SE (Information Technology, Software)		54,112		5,651,976
Siemens AG (Industrials, Industrial Conglomerates)		32,784		4,506,414
				39,652,494
Hong Kong: 2.35%
Xinyi Glass Holdings Limited (Consumer Discretionary, Auto Components)		7,866,000		7,787,969
Italy: 3.39%
Eni SpA (Energy, Oil, Gas & Consumable Fuels)		677,378		10,181,458
Prysmian SpA (Industrials, Electrical Equipment)		35,040		1,030,539
				11,211,997
Japan: 10.33%
Daiwa Securities Group Incorporated (Financials, Capital Markets)		1,400,000		8,287,353
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components)		1,264,000		7,747,514
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks)		907,800		6,092,087
Mitsui Fudosan Company Limited (Real Estate, Real Estate Management & Development)		143,900		3,429,419
Nomura Holdings Incorporated (Financials, Capital Markets)		1,435,600		8,595,093
				34,151,466
Malaysia: 3.26%
CIMB Group Holdings Bhd (Financials, Banks)		7,034,620		10,783,036

The accompanying notes are an integral part of these financial statements.

8 Wells Fargo VT International Equity Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name			Shares		Value
Netherlands: 8.15%
Koninklijke Philips NV (Industrials, Industrial Conglomerates) «				254,106	$	9,024,611
NN Group NV (Financials, Insurance)				245,170		8,714,248
Sensata Technologies Holding NV (Industrials, Electrical Equipment) Ǡ				215,391		9,201,504
						26,940,363
Norway: 4.50%
Den Norske Bank ASA (Financials, Banks)				687,675		11,696,344
Frontline Limited (Energy, Oil, Gas & Consumable Fuels) «				157,965		891,170
Marine Harvest ASA (Consumer Staples, Food Products)				134,882		2,308,685
						14,896,199
Russia: 2.49%
Mobile TeleSystems PJSC ADR (Telecommunication Services, Wireless Telecommunication Services)				980,891		8,219,867
South Africa: 1.76%
Sasol Limited (Materials, Chemicals)				208,308		5,835,649
South Korea: 6.92%
Hana Financial Group Incorporated (Financials, Banks)				218,563		8,643,950
Samsung Electronics Company Limited GDR (Information Technology, Technology Hardware, Storage & Peripherals) 144A				2,013		2,083,455
SK Telecom Company Limited (Telecommunication Services, Wireless Telecommunication Services)				52,341		12,168,602
						22,896,007
Switzerland: 5.02%
Novartis AG (Health Care, Pharmaceuticals)				141,485		11,774,432
Zurich Insurance Group AG (Financials, Insurance)				16,613		4,835,424
						16,609,856
United Kingdom: 11.47%
Man Group plc (Financials, Capital Markets)				3,594,797		7,247,801
Smiths Group plc (Industrials, Industrial Conglomerates)				386,789		8,045,258
United Business Media plc (Consumer Discretionary, Media)				902,582		8,111,416
Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services)				4,048,015		11,480,511
Wolseley plc (Industrials, Trading Companies & Distributors)				49,692		3,050,316
						37,935,302
United States: 3.30%
Apple Incorporated (Information Technology, Technology Hardware, Storage & Peripherals)				36,211		5,215,109
Coach Incorporated (Consumer Discretionary, Textiles, Apparel & Luxury Goods)				120,654		5,711,760
						10,926,869
Total Common Stocks (Cost $263,933,978)						295,355,297
	Expiration date
Participation Notes: 1.71%
China: 1.71%
HSBC Bank plc (Kweichow Moutai Company Limited Class A) (Consumer Staples, Beverages) †		2-19-2019		81,158		5,648,559
Total Participation Notes (Cost $2,644,736)						5,648,559

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT International Equity Fund 9

Security name	Yield			Shares		Value
Short-Term Investments: 8.76%
Investment Companies: 8.76%
Securities Lending Cash Investment LLC (l)(r)(u)		1.39	%		1,338,195	$	1,338,329
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.86			27,625,900		27,625,900
Total Short-Term Investments (Cost $28,964,141)							28,964,229

Total investments in securities (Cost $295,542,855) *	99.77	%		329,968,085
Other assets and liabilities, net	0.23			761,932
Total net assets	100.00	%	$	330,730,017

« All or a portion of this security is on loan.

† Non-income-earning security

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the 7-day annualized yield at period end.

* Cost for federal income tax purposes is $295,454,353 and unrealized gains (losses) consists of:

Gross unrealized gains	$	43,439,902
Gross unrealized losses		(8,926,170	)
Net unrealized gains	$	34,513,732

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo VT International Equity Fund Statement of assets and liabilities—June 30, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $1,290,702 of securities loaned), at value (cost $266,578,714)	$	301,003,856
In affiliated securities, at value (cost $28,964,141)		28,964,229
Total investments, at value (cost $295,542,855)		329,968,085
Segregated cash		570,000
Foreign currency, at value (cost $873,813)		882,777
Receivable for Fund shares sold		14,633
Receivable for dividends		1,845,073
Receivable for securities lending income		11,774
Unrealized gains on forward foreign currency contracts		191,990
Prepaid expenses and other assets		2,401
Total assets		333,486,733
Liabilities
Payable for Fund shares redeemed		86,672
Unrealized losses on forward foreign currency contracts		732,579
Payable upon receipt of securities loaned		1,338,091
Due to custodian bank		304,000
Management fee payable		158,653
Distribution fee payable		67,097
Administration fees payable		23,345
Accrued expenses and other liabilities		46,279
Total liabilities		2,756,716
Total net assets	$	330,730,017
NET ASSETS CONSIST OF
Paid-in capital	$	279,581,637
Undistributed net investment income		13,671,025
Accumulated net realized gains on investments		3,496,958
Net unrealized gains on investments		33,980,397
Total net assets	$	330,730,017
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	26,398,991
Shares outstanding – Class 11		5,327,791
Net asset value per share – Class 1		$4.95
Net assets – Class 2	$	304,331,026
Shares outstanding – Class 21		61,067,258
Net asset value per share – Class 2		$4.98

¹  The Fund has an unlimited number of authorized shares.

The accompanying notes are an integral part of these financial statements.

Statement of operations—six months ended June 30, 2017 (unaudited) Wells Fargo VT International Equity Fund 11

Investment income
Dividends (net of foreign withholding taxes of $775,705)	$	6,299,988
Securities lending income, net		107,822
Income from affiliated securities		71,969
Total investment income		6,479,779
Expenses
Management fee		1,299,105
Administration fees
Class 1		10,418
Class 2		119,492
Distribution fee
Class 2		373,413
Custody and accounting fees		46,785
Professional fees		22,211
Shareholder report expenses		21,034
Trustees’ fees and expenses		10,898
Other fees and expenses		8,496
Total expenses		1,911,852
Less: Fee waivers and/or expense reimbursements		(417,961	)
Net expenses		1,493,891
Net investment income		4,985,888
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		14,412,437
Affiliated securities		95
Forward foreign currency contract transactions		(260,981	)
Net realized gains on investments		14,151,551
Net change in unrealized gains (losses) on:
Unaffiliated securities		19,367,393
Affiliated securities		(93	)
Forward foreign currency contract transactions		(1,216,469	)
Net change in unrealized gains (losses) on investments		18,150,831
Net realized and unrealized gains (losses) on investments		32,302,382
Net increase in net assets resulting from operations	$	37,288,270

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo VT International Equity Fund Statement of changes in net assets

	Six months ended June 30, 2017 (unaudited)						Year ended December 31, 2016
Operations
Net investment income				$	4,985,888					$	7,034,171
Net realized gains (losses) on investments					14,151,551						(6,282,005	)
Net change in unrealized gains (losses) on investments					18,150,831						9,162,899
Net increase in net assets resulting from operations					37,288,270						9,915,065
Distributions to shareholders from
Net investment income
Class 1					0						(793,355	)
Class 2					0						(8,065,124	)
Net realized gains
Class 1					0						(1,930,040	)
Class 2					0						(21,828,958	)
Total distributions to shareholders					0						(32,617,477	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		127,372			607,806			428,691			1,873,330
Class 2		406,872			1,961,627			3,816,908			16,773,542
					2,569,433						18,646,872
Reinvestment of distributions
Class 1		0			0			694,743			2,723,395
Class 2		0			0			7,549,011			29,894,082
					0						32,617,477
Payment for shares redeemed
Class 1		(494,420	)		(2,359,725	)		(1,710,735	)		(7,542,633	)
Class 2		(4,272,344	)		(20,532,705	)		(7,426,109	)		(32,722,984	)
					(22,892,430	)					(40,265,617	)
Net increase (decrease) in net assets resulting from capital share transactions					(20,322,997	)					10,998,732
Total increase (decrease) in net assets					16,965,273						(11,703,680	)
Net assets
Beginning of period					313,764,744						325,468,424
End of period				$	330,730,017					$	313,764,744
Undistributed net investment income				$	13,671,025					$	8,685,137

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo VT International Equity Fund 13

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 1				2016			2015			2014			2013			2012
Net asset value, beginning of period		$4.41			$4.82			$4.92			$5.48			$4.94			$4.77
Net investment income		0.08	1		0.11	1		0.11	1		0.18	1		0.12	1		0.13	1
Net realized and unrealized gains (losses) on investments		0.46			(0.01	)		0.02			(0.46	)		0.82			0.45
Total from investment operations		0.54			0.10			0.13			(0.28	)		0.94			0.58
Distributions to shareholders from
Net investment income		0.00			(0.15	)		(0.23	)		(0.16	)		(0.13	)		(0.08	)
Net realized gains		0.00			(0.36	)		0.00			(0.12	)		(0.27	)		(0.33	)
Total distributions to shareholders		0.00			(0.51	)		(0.23	)		(0.28	)		(0.40	)		(0.41	)
Net asset value, end of period		$4.95			$4.41			$4.82			$4.92			$5.48			$4.94
Total return2		12.24	%		3.25	%		2.30	%		(5.30	)%		19.94	%		13.68	%
Ratios to average net assets (annualized)
Gross expenses		0.95	%		0.95	%		0.95	%		0.94	%		0.95	%		0.98	%
Net expenses		0.69	%		0.69	%		0.69	%		0.69	%		0.69	%		0.69	%
Net investment income		3.30	%		2.49	%		2.04	%		3.44	%		2.36	%		2.68	%
Supplemental data
Portfolio turnover rate		27	%		77	%		34	%		39	%		32	%		140	%
Net assets, end of period (000s omitted)		$26,399			$25,137			$30,254			$32,599			$42,021			$43,089

¹  Calculated based upon average shares outstanding

² Returns for periods of less than one year are not annualized.

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo VT International Equity Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 2				2016			2015			2014			2013			2012
Net asset value, beginning of period		$4.45			$4.84			$4.95			$5.50			$4.96			$4.78
Net investment income		0.07	1		0.10			0.09	1		0.16			0.11	1		0.11
Net realized and unrealized gains (losses) on investments		0.46			0.00			0.01			(0.45	)		0.82			0.47
Total from investment operations		0.53			0.10			0.10			(0.29	)		0.93			0.58
Distributions to shareholders from
Net investment income		0.00			(0.13	)		(0.21	)		(0.14	)		(0.12	)		(0.07	)
Net realized gains		0.00			(0.36	)		0.00			(0.12	)		(0.27	)		(0.33	)
Total distributions to shareholders		0.00			(0.49	)		(0.21	)		(0.26	)		(0.39	)		(0.40	)
Net asset value, end of period		$4.98			$4.45			$4.84			$4.95			$5.50			$4.96
Total return2		11.91	%		3.30	%		1.80	%		(5.35	)%		19.52	%		13.48	%
Ratios to average net assets (annualized)
Gross expenses		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%		1.23	%
Net expenses		0.94	%		0.94	%		0.94	%		0.94	%		0.94	%		0.94	%
Net investment income		3.05	%		2.25	%		1.77	%		3.07	%		2.08	%		2.41	%
Supplemental data
Portfolio turnover rate		27	%		77	%		34	%		39	%		32	%		140	%
Net assets, end of period (000s omitted)		$304,331			$288,628			$295,215			$310,909			$319,565			$296,705

¹  Calculated based upon average shares outstanding

²  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 (unaudited) Wells Fargo VT International Equity Fund 15

1. ORGANIZATION

Wells Fargo Variable 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 Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT International Equity Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of 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 June 30, 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. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally 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 of the Fund. 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 or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer 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.

16 Wells Fargo VT International Equity Fund Notes to financial statements (unaudited)

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.

Participation notes

The Fund may invest in participation notes to gain exposure to securities in certain foreign markets. Participation notes are issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying foreign security. Participation notes involve transaction costs, which may be higher than those applicable to the underlying foreign security. The holder of the participation note is entitled to receive from the bank or broker-dealer, an amount equal to the dividend paid by the issuer of the underlying foreign security; however, the holder is not entitled to the same rights (i.e. dividends, voting rights) as an owner of the underlying foreign security. Investments in participation notes involve risks beyond those normally associated with a direct investment in an underlying security. The Fund has no rights against the issuer of the underlying foreign security and participation notes expose the Fund to counterparty risk in the event the counterparty does not perform. There is also no assurance there will be a secondary trading market for the participation note or that the trading price of the participation note will equal the underlying value of the foreign security that it seeks to replicate.

Forward foreign currency contracts

The Fund is subject to foreign currency risk in the normal course of pursuing its investment objectives. A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contract transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The

Notes to financial statements (unaudited) Wells Fargo VT International Equity Fund 17

Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

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.

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of December 31, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

2017	No expiration
	Short-term
$1,334,528	$8,677,104

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution 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.

18 Wells Fargo VT International Equity Fund Notes to financial statements (unaudited)

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Brazil	$	6,880,212	$	0	$	0	$	6,880,212
Canada		7,218,548		0		0		7,218,548
China		20,622,682		0		0		20,622,682
Denmark		3,101,622		0		0		3,101,622
France		9,685,159		0		0		9,685,159
Germany		39,652,494		0		0		39,652,494
Hong Kong		7,787,969		0		0		7,787,969
Italy		11,211,997		0		0		11,211,997
Japan		34,151,466		0		0		34,151,466
Malaysia		10,783,036		0		0		10,783,036
Netherlands		26,940,363		0		0		26,940,363
Norway		14,896,199		0		0		14,896,199
Russia		8,219,867		0		0		8,219,867
South Africa		5,835,649		0		0		5,835,649
South Korea		22,896,007		0		0		22,896,007
Switzerland		16,609,856		0		0		16,609,856
United Kingdom		37,935,302		0		0		37,935,302
United States		10,926,869		0		0		10,926,869
Participation notes
China		0		5,648,559		0		5,648,559
Short-term investments
Investment companies		27,625,900		0		0		27,625,900
Investments measured at net asset value*								1,338,329
		322,981,197		5,648,559		0		329,968,085
Forward foreign currency contracts		0		191,990		0		191,990
Total assets	$	322,981,197	$	5,840,549	$	0	$	330,160,075
Liabilities
Forward foreign currency contracts	$	0	$	732,579	$	0	$	732,579
Total liabilities	$	0	$	732,579	$	0	$	732,579

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $1,338,329 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 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, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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

Notes to financial statements (unaudited) Wells Fargo VT International Equity Fund 19

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 0.80% and declining to 0.63% as the average daily net assets of the Fund increase. For the six months ended June 30, 2017, the management fee was equivalent to an annual rate of 0.80% 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. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% 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 of 0.08% which is calculated based on the average daily net assets of each class.

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 April 30, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.69% for Class 1 shares and 0.94% for Class 2 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 six months ended June 30, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $288 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.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended June 30, 2017 were $81,283,323 and $88,303,373, 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 do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. DERIVATIVE TRANSACTIONS

During the six months ended June 30, 2017, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At June 30, 2017, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty	Contracts to receive		U.S. value at June 30, 2017		In exchange for U.S. $		Unrealized gains
7-13-2017	Credit Suisse		4,900,000  EUR	$	5,598,828	$	5,523,109	$	75,719
8-30-2017	Barclays		2,260,000  EUR		2,588,684		2,553,506		35,178
8-30-2017	Barclays		3,796,000  EUR		4,348,074		4,266,981		81,093

20 Wells Fargo VT International Equity Fund Notes to financial statements (unaudited)

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver		U.S. value at June 30, 2017		In exchange for U.S. $		Unrealized losses
7-13-2017	Credit Suisse		4,900,000  EUR	$	5,598,829	$	5,220,328	$	(378,501	)
8-30-2017	Barclays		6,056,000  EUR		6,936,758		6,794,348		(142,410	)
9-12-2017	Morgan Stanley		3,840,600  GBP		5,012,688		4,860,298		(152,390	)
9-12-2017	Morgan Stanley		5,430,000  GBP		7,087,146		7,056,014		(31,132	)
9-12-2017	Morgan Stanley		5,430,000  GBP		7,087,146		7,059,000		(28,146	)

The Fund had average contract amounts of $18,570,407 and $50,843,981 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended June 30, 2017. As of June 30, 2017, the Fund had received $570,000 as cash collateral for open forward foreign currency contracts.

The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities			Amounts subject to netting agreements			Collateral received		Net amount of assets
Forward foreign currency contracts	Barclays	$	116,271	*	$	(116,271	)	$	0	$	0
	Credit Suisse		75,719	*		(75,719	)		0		0

* Amount represents net unrealized gains.

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities			Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Forward foreign currency contracts	Barclays	$	142,410	**	$	(116,271	)	$	(26,139	)	$	0
	Credit Suisse		378,501	**		(75,719	)		(302,782	)		0
	Morgan Stanley		211,668	**		0			(211,668	)		0

¹  Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.

** Amount represents net unrealized losses

7. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) 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.

Notes to financial statements (unaudited) Wells Fargo VT International Equity Fund 21

For the six months ended June 30, 2017, there were no borrowings by the Fund under the agreement.

8. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

9. 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.

10. 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. Management has evaluated the amendments to Regulation S-X and its adoption will result in enhanced financial disclosures in the Fund’s financial statements. Management continues to evaluate the reporting requirements for the new form types (compliance date is June 1, 2018) and the implementation of the liquidity risk management program (compliance date is December 1, 2018).

11. SUBSEQUENT DISTRIBUTIONS

On July 17, 2017, the Fund declared distributions from net investment income to shareholders of record on July 14, 2017. The per share amounts payable on July 18, 2017 were as follows:

	Net investment income
Class 1	$	0.15247
Class 2		0.14053

These distributions are not reflected in the accompanying financial statements.

22 Wells Fargo VT International Equity Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-260-5969, 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 VT International Equity Fund 23

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 148 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 (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	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.	Asset Allocation Trust
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.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. 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).	CIGNA Corporation; Asset Allocation Trust
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.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	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

24 Wells Fargo VT International Equity Fund Other information (unaudited)

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
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.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and 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. 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.	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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors (Blackrock) from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	Asset Allocation Trust
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	Asset Allocation Trust

Other information (unaudited) Wells Fargo VT International Equity Fund 25

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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.

¹  Jeremy DePalma acts as Treasurer of 79 funds in the Fund Complex and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-260-5969 or by visiting the website at wellsfargofunds.com.

26 Wells Fargo VT International Equity Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Variable Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo VT International Equity Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by

Other information (unaudited) Wells Fargo VT International Equity Fund 27

Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than or in range of its benchmark, the MSCI ACWI Index ex USA (Net), for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratio and its various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratio of funds in a class-specific expense group that was determined by Broadridge to be similar to the Fund (the “Group”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Group and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratio of the Fund was in range of the median net operating expense ratio of the expense Group.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rate”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Fund’s Management Rate with the average contractual investment management fee rate of funds in the expense Group at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rate of the Fund was lower than the sum of these average rate for the Fund’s expense Group.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

28 Wells Fargo VT International Equity Fund Other information (unaudited)

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo VT International Equity Fund 29

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

PJSC —  Public Joint Stock Company

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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: fundservice@wellsfargo.com

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 1-800-260-5969 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.

304905 08-17

SVT3/SAR140 06-17

Semi-Annual Report

June 30, 2017

Wells Fargo VT Omega Growth Fund

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	16
Other information	21
List of abbreviations	28

The views expressed and any forward-looking statements are as of June 30, 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 VT Omega Growth Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty.

Dear Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo VT Omega Growth Fund for the six-month period that ended June 30, 2017. Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty. U.S. and international stocks returned 9.34% and 14.10% for the six-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 -2.27%.

Economies improved in the first quarter of 2017, supporting markets.

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. In March, U.S. Federal Reserve (Fed) officials raised their target interest rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target interest 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 because they benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market.

Steady advancement in many markets marked the second quarter of 2017.

With steady, modest economic growth both in the U.S. and abroad during the second quarter of 2017, most equity markets in the U.S. and abroad advanced with few signs of volatility. Within the economy, U.S. inflation trended lower despite the unemployment rate continuing to decline. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, Fed officials in June again raised their target interest rate by a quarter percentage point to between 1.00% and 1.25%. They also released a blueprint for reducing the Fed’s balance sheet, which had ballooned due to quantitative easing. Although economic momentum increased in Europe, the European Central Bank held its rates steady at low levels because underlying inflation remained subdued. In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar.

¹  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.

²  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted 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.

³  The Bloomberg 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) Wells Fargo VT Omega Growth Fund 3

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. 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.

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

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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Omega Growth 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

Michael T. Smith, CFA^®

Christopher J. Warner, CFA^®

Average annual total returns (%) as of June 30, 2017

								Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		Gross		Net2
Class 1	3-6-1997		22.15		13.59		9.93		0.82		0.75
Class 2	7-31-2002		21.87		13.32		9.65		1.07		1.00
Russell 3000® Growth Index3	–		20.72		15.20		8.82		–		–

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If sales loads or charges had been reflected, performance would have been lower.

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.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The Fund is exposed to smaller company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Omega Growth Fund 5

Ten largest holdings (%) as of June 30, 20174
Amazon.com Incorporated	5.16
UnitedHealth Group Incorporated	3.62
Alphabet Incorporated Class A	3.61
Visa Incorporated Class A	3.54
The Home Depot Incorporated	3.12
Facebook Incorporated Class A	3.06
Waste Connections Incorporated	2.95
Microsoft Corporation	2.91
Celgene Corporation	2.26
Salesforce.com Incorporated	1.89

Sector distribution as of June 30, 2017⁵

¹  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

²  The manager has contractually committed through April 30, 2018, 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 the amounts shown. 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.

³  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁴  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.

⁵  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.

6 Wells Fargo VT Omega Growth Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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 January 1, 2017 to June 30, 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 separate account charges assessed by participating insurance companies. 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 1-1-2017		Ending account value 6-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class 1
Actual	$	1,000.00	$	1,184.68	$	4.06		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76		0.75	%
Class 2
Actual	$	1,000.00	$	1,183.35	$	5.41		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.84	$	5.01		1.00	%

¹ 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—June 30, 2017 (unaudited) Wells Fargo VT Omega Growth Fund 7

Security name	Shares		Value
Common Stocks: 96.39%
Consumer Discretionary: 21.69%
Diversified Consumer Services: 3.08%
Adtalem Global Education Incorporated		33,600	$	1,275,120
Bright Horizons Family Solutions Incorporated †		17,200		1,328,012
				2,603,132
Hotels, Restaurants & Leisure: 5.40%
Royal Caribbean Cruises Limited		5,800		633,534
Six Flags Entertainment Corporation		20,000		1,192,200
Starbucks Corporation		19,200		1,119,552
Vail Resorts Incorporated		6,000		1,216,980
Wingstop Incorporated «		12,792		395,273
				4,557,539
Internet & Direct Marketing Retail: 5.93%
Amazon.com Incorporated †		4,500		4,356,000
Ctrip.com International Limited ADR †		12,100		651,706
				5,007,706
Media: 2.52%
Charter Communications Incorporated Class A †		3,000		1,010,550
Cinemark Holdings Incorporated		28,899		1,122,726
				2,133,276
Specialty Retail: 4.76%
The Home Depot Incorporated		17,200		2,638,480
The TJX Companies Incorporated		19,100		1,378,447
				4,016,927
Consumer Staples: 0.90%
Beverages: 0.90%
Monster Beverage Corporation †		15,300		760,104
Energy: 0.74%
Oil, Gas & Consumable Fuels: 0.74%
Pioneer Natural Resources Company		3,900		622,362
Financials: 5.69%
Capital Markets: 3.21%
Intercontinental Exchange Incorporated		21,100		1,390,912
Raymond James Financial Incorporated		16,506		1,324,111
				2,715,023
Consumer Finance: 1.68%
SLM Corporation †		123,100		1,415,650

The accompanying notes are an integral part of these financial statements.

8 Wells Fargo VT Omega Growth Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Thrifts & Mortgage Finance: 0.80%
Radian Group Incorporated		41,400	$	676,890
Health Care: 13.35%
Biotechnology: 4.14%
Bioverativ Incorporated †		15,900		956,703
Celgene Corporation †		14,666		1,904,673
Gilead Sciences Incorporated		6,100		431,758
Incyte Corporation †		1,600		201,456
				3,494,590
Health Care Equipment & Supplies: 4.06%
Baxter International Incorporated		16,700		1,011,018
Edwards Lifesciences Corporation †		6,800		804,032
Hologic Incorporated †		16,400		744,232
Intuitive Surgical Incorporated †		934		873,636
				3,432,918
Health Care Providers & Services: 5.15%
Amedisys Incorporated †		10,388		652,470
Tivity Health Incorporated †		16,000		637,600
UnitedHealth Group Incorporated		16,500		3,059,430
				4,349,500
Industrials: 10.02%
Aerospace & Defense: 2.18%
BWX Technologies Incorporated		19,800		965,250
Mercury Computer Systems Incorporated †		20,900		879,681
				1,844,931
Airlines: 1.31%
Spirit Airlines Incorporated †		21,400		1,105,310
Commercial Services & Supplies: 2.95%
Waste Connections Incorporated		38,647		2,489,608
Machinery: 1.06%
John Bean Technologies Corporation		9,100		891,800
Professional Services: 1.50%
TransUnion †		29,294		1,268,723
Trading Companies & Distributors: 1.02%
Univar Incorporated †		29,400		858,480
Information Technology: 38.23%
Communications Equipment: 0.68%
Harris Corporation		5,300		578,124

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Omega Growth Fund 9

Security name	Shares		Value
Internet Software & Services: 11.29%
Alphabet Incorporated Class A †		3,280	$	3,049,350
Alphabet Incorporated Class C †		1,489		1,353,099
CoStar Group Incorporated †		2,700		711,720
Facebook Incorporated Class A †		17,105		2,582,513
MercadoLibre Incorporated		2,200		551,936
Tencent Holdings Limited ADR «		35,800		1,287,368
				9,535,986
IT Services: 11.74%
Acxiom Corporation †		37,414		972,016
EPAM Systems Incorporated †		13,415		1,128,067
Fidelity National Information Services Incorporated		16,300		1,392,020
PayPal Holdings Incorporated †		19,300		1,035,831
Total System Services Incorporated		22,500		1,310,625
Visa Incorporated Class A		31,844		2,986,330
WEX Incorporated †		10,443		1,088,892
				9,913,781
Semiconductors & Semiconductor Equipment: 2.60%
Broadcom Limited		5,100		1,188,555
Teradyne Incorporated		33,600		1,009,008
				2,197,563
Software: 10.43%
Activision Blizzard Incorporated		14,500		834,765
Microsoft Corporation		35,700		2,460,801
Nintendo Company Limited «		29,500		1,233,690
Salesforce.com Incorporated †		18,400		1,593,440
ServiceNow Incorporated †		7,450		789,700
Take-Two Interactive Software Incorporated †		16,900		1,240,122
Ultimate Software Group Incorporated †		3,100		651,186
				8,803,704
Technology Hardware, Storage & Peripherals: 1.49%
NCR Corporation †		30,800		1,257,872
Materials: 4.89%
Chemicals: 1.75%
The Sherwin-Williams Company		4,200		1,474,032
Construction Materials: 1.60%
Vulcan Materials Company		10,700		1,355,476
Containers & Packaging: 1.54%
Berry Plastics Group Incorporated †		22,800		1,299,828
Real Estate: 0.88%
Equity REITs: 0.88%
SBA Communications Corporation †		5,500		741,950
Total Common Stocks (Cost $59,784,029)				81,402,785

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo VT Omega Growth Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Yield			Shares		Value
Short-Term Investments: 5.80%
Investment Companies: 5.80%
Securities Lending Cash Investment LLC (l)(r)(u)		1.39	%		1,654,134	$	1,654,300
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.86			3,238,413		3,238,413
Total Short-Term Investments (Cost $4,892,713)							4,892,713

Total investments in securities (Cost $64,676,742) *	102.19	%		86,295,498
Other assets and liabilities, net	(2.19	)		(1,846,449	)
Total net assets	100.00	%	$	84,449,049

† Non-income-earning security

« All or a portion of this security is on loan.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the 7-day annualized yield at period end.

* Cost for federal income tax purposes is $64,694,458 and unrealized gains (losses) consists of:

Gross unrealized gains	$	22,236,108
Gross unrealized losses		(635,068	)
Net unrealized gains	$	21,601,040

The accompanying notes are an integral part of these financial statements.

Statement of assets and liabilities—June 30, 2017 (unaudited) Wells Fargo VT Omega Growth Fund 11

Assets
Investments
In unaffiliated securities (including $1,633,405 of securities loaned), at value (cost $59,784,029)	$	81,402,785
In affiliated securities, at value (cost $4,892,713)		4,892,713
Total investments, at value (cost $64,676,742)		86,295,498
Receivable for investments sold		680,373
Receivable for Fund shares sold		168,355
Receivable for dividends		21,060
Receivable for securities lending income		506
Prepaid expenses and other assets		1,058
Total assets		87,166,850
Liabilities
Payable for investments purchased		877,470
Payable for Fund shares redeemed		91,045
Payable upon receipt of securities loaned		1,654,300
Management fee payable		39,089
Distribution fee payable		10,380
Administration fees payable		5,907
Accrued expenses and other liabilities		39,610
Total liabilities		2,717,801
Total net assets	$	84,449,049
NET ASSETS CONSIST OF
Paid-in capital	$	54,685,766
Undistributed net investment income		33,418
Accumulated net realized gains on investments		8,111,109
Net unrealized gains on investments		21,618,756
Total net assets	$	84,449,049
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	37,550,082
Shares outstanding – Class 11		1,427,634
Net asset value per share – Class 1		$26.30
Net assets – Class 2	$	46,898,967
Shares outstanding – Class 21		1,854,035
Net asset value per share – Class 2		$25.30

¹  The Fund has an unlimited number of authorized shares.

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo VT Omega Growth Fund Statement of operations—six months ended June 30, 2017 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $1,495)	$	292,925
Income from affiliated securities		3,355
Securities lending income, net		2,739
Total investment income		299,019
Expenses
Management fee		241,875
Administration fees
Class 1		14,060
Class 2		18,190
Distribution fee
Class 2		56,844
Custody and accounting fees		9,257
Professional fees		26,111
Shareholder report expenses		7,694
Trustees’ fees and expenses		10,603
Other fees and expenses		5,063
Total expenses		389,697
Less: Fee waivers and/or expense reimbursements		(30,510	)
Net expenses		359,187
Net investment loss		(60,168	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		5,823,628
Net change in unrealized gains (losses) on investments		7,781,357
Net realized and unrealized gains (losses) on investments		13,604,985
Net increase in net assets resulting from operations	$	13,544,817

The accompanying notes are an integral part of these financial statements.

Statement of changes in net assets Wells Fargo VT Omega Growth Fund 13

	Six months ended June 30, 2017 (unaudited)						Year ended December 31, 2016
Operations
Net investment income (loss)				$	(60,168	)				$	95,150
Net realized gains on investments					5,823,628						4,552,241
Net change in unrealized gains (losses) on investments					7,781,357						(4,610,891	)
Net increase in net assets resulting from operations					13,544,817						36,500
Distributions to shareholders from
Net realized gains
Class 1					0						(1,928,811	)
Class 2					0						(2,495,195	)
Total distributions to shareholders					0						(4,424,006	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		92,589			2,373,184			88,558			1,932,932
Class 2		55,011			1,286,629			73,250			1,553,214
					3,659,813						3,486,146
Reinvestment of distributions
Class 1		0			0			89,214			1,928,811
Class 2		0			0			119,674			2,495,195
					0						4,424,006
Payment for shares redeemed
Class 1		(168,049	)		(4,133,371	)		(406,707	)		(8,978,003	)
Class 2		(197,403	)		(4,679,211	)		(413,059	)		(8,813,207	)
					(8,812,582	)					(17,791,210	)
Net decrease in net assets resulting from capital share transactions					(5,152,769	)					(9,881,058	)
Total increase (decrease) in net assets					8,392,048						(14,268,564	)
Net assets
Beginning of period					76,057,001						90,325,565
End of period				$	84,449,049					$	76,057,001
Undistributed net investment income				$	33,418					$	93,586

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo VT Omega Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 1				2016			2015			2014			2013			2012
Net asset value, beginning of period		$22.20			$23.30			$27.57			$32.78			$25.56			$22.78
Net investment income (loss)		(0.00	)1,2		0.10			(0.03	)		(0.03	)		(0.01	)		0.11
Net realized and unrealized gains (losses) on investments		4.10			0.05			0.52			1.22			9.81			4.43
Total from investment operations		4.10			0.15			0.49			1.19			9.80			4.54
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.12	)		0.00
Net realized gains		0.00			(1.25	)		(4.76	)		(6.40	)		(2.46	)		(1.76	)
Total distributions to shareholders		0.00			(1.25	)		(4.76	)		(6.40	)		(2.58	)		(1.76	)
Net asset value, end of period		$26.30			$22.20			$23.30			$27.57			$32.78			$25.56
Total return3		18.47	%		0.77	%		1.62	%		4.09	%		40.22	%		20.76	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.82	%		0.79	%		0.75	%		0.79	%		0.80	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income (loss)		(0.01	)%		0.26	%		(0.11	)%		(0.10	)%		(0.12	)%		0.40	%
Supplemental data
Portfolio turnover rate		37	%		90	%		101	%		88	%		95	%		93	%
Net assets, end of period (000s omitted)		$37,550			$33,373			$40,362			$47,210			$55,867			$47,842

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  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 VT Omega Growth Fund 15

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 2				2016			2015			2014			2013			2012
Net asset value, beginning of period		$21.38			$22.54			$26.89			$32.19			$25.13			$22.48
Net investment income (loss)		(0.05	)		0.00	1,2		(0.09	)		(0.10	)		(0.12	)		0.02
Net realized and unrealized gains (losses) on investments		3.97			0.09			0.50			1.20			9.68			4.39
Total from investment operations		3.92			0.09			0.41			1.10			9.56			4.41
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.04	)		0.00
Net realized gains		0.00			(1.25	)		(4.76	)		(6.40	)		(2.46	)		(1.76	)
Total distributions to shareholders		0.00			(1.25	)		(4.76	)		(6.40	)		(2.50	)		(1.76	)
Net asset value, end of period		$25.30			$21.38			$22.54			$26.89			$32.19			$25.13
Total return3		18.33	%		0.52	%		1.34	%		3.86	%		39.88	%		20.39	%
Ratios to average net assets (annualized)
Gross expenses		1.08	%		1.07	%		1.04	%		1.00	%		1.04	%		1.05	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income (loss)		(0.26	)%		0.01	%		(0.36	)%		(0.35	)%		(0.37	)%		0.12	%
Supplemental data
Portfolio turnover rate		37	%		90	%		101	%		88	%		95	%		93	%
Net assets, end of period (000s omitted)		$46,899			$42,684			$49,963			$59,035			$68,658			$62,599

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Returns for periods of less than one year are not annualized.

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo VT Omega Growth Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Variable 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 Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Omega Growth Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of 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.

Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally 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 of the Fund. 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 of Wells Fargo Funds Management, LLC (“Funds Management”). 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 or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer 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.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

Notes to financial statements (unaudited) Wells Fargo VT Omega Growth Fund 17

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

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. Dividend income 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.

As of December 31, 2016, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $162,398 expiring in 2017.

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution 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)

18 Wells Fargo VT Omega Growth Fund Notes to financial statements (unaudited)

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 June 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	18,318,580	$	0	$	0	$	18,318,580
Consumer staples		760,104		0		0		760,104
Energy		622,362		0		0		622,362
Financials		4,807,563		0		0		4,807,563
Health care		11,277,008		0		0		11,277,008
Industrials		8,458,852		0		0		8,458,852
Information technology		32,287,030		0		0		32,287,030
Materials		4,129,336		0		0		4,129,336
Real estate		741,950		0		0		741,950
Short-term investments
Investment companies		3,238,413		0		0		3,238,413
Investments measured at net asset value*								1,654,300
Total assets	$	84,641,198	$	0	$	0	$	86,295,498

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $1,654,300 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 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, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 0.60% and declining to 0.43% as the average daily net assets of the Fund increase. For the six months ended June 30, 2017, the management fee was equivalent to an annual rate of 0.60% 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. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.30% 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 a class level administration fee of 0.08% which is based on the average daily net assets of each class.

Notes to financial statements (unaudited) Wells Fargo VT Omega Growth Fund 19

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 April 30, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class 1 shares and 1.00% for Class 2 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 six months ended June 30, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $71 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.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended June 30, 2017 were $29,408,903 and $36,682,572, 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 do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) 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.

For the six months ended June 30, 2017, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

8. 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.

9. 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. Management has evaluated the amendments to Regulation S-X and its adoption will result in enhanced financial disclosures in the Fund’s financial statements. Management continues to evaluate the reporting requirements for the new form types (compliance date is June 1, 2018) and the implementation of the liquidity risk management program (compliance date is December 1, 2018).

20 Wells Fargo VT Omega Growth Fund Notes to financial statements (unaudited)

10. SUBSEQUENT DISTRIBUTIONS

On July 17, 2017, the Fund declared distributions from net investment income and long-term capital gains to shareholders of record on July 14, 2017. The per share amounts payable on July 18, 2017 were as follows:

	Net investment income		Long-term capital gains
Class 1		$0.06322		$0.80652
Class 2		0.00305		0.77558

These distributions are not reflected in the accompanying financial statements.

Other information (unaudited) Wells Fargo VT Omega Growth Fund 21

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 1-800-260-5969, 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.

22 Wells Fargo VT Omega Growth Fund Other information (unaudited)

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 148 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 (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	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.	Asset Allocation Trust
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.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. 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).	CIGNA Corporation; Asset Allocation Trust
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.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	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

Other information (unaudited) Wells Fargo VT Omega Growth Fund 23

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
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.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and 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. 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.	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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors (Blackrock) from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	Asset Allocation Trust
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	Asset Allocation Trust

24 Wells Fargo VT Omega Growth Fund Other information (unaudited)

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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.

¹  Jeremy DePalma acts as Treasurer of 79 funds in the Fund Complex and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-260-5969 or by visiting the website at wellsfargofunds.com.

Other information (unaudited) Wells Fargo VT Omega Growth Fund 25

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Variable Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo VT Omega Growth Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2016. In certain cases, the Board also considered more current results for various time periods ended March 31, 2017. The Board considered these results in comparison to the performance of funds in a universe that was

26 Wells Fargo VT Omega Growth Fund Other information (unaudited)

determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund was higher than or in range of the average performance of the Universe for the five- and ten-year period ended December 31, 2016, but lower than the average performance of the Universe for the one- and three-year periods ended December 31, 2016. However, the Board noted that the performance ranking of the Fund in the Universe had improved from the prior quarter-end for the one- and three-year periods ended March 31, 2017. The Board also noted that the performance of the Fund was higher than its benchmark, the Russell 3000^® Growth Index, for the ten-year period ended December 31, 2016, but lower than its benchmark for the one-, three- and five-year periods ended December 31, 2016.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance. The Board noted that the Fund experienced a portfolio manager change during the third quarter of 2016.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or equal to the median net operating expense ratios of the expense Groups for all share classes.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.

Other information (unaudited) Wells Fargo VT Omega Growth Fund 27

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

28 Wells Fargo VT Omega Growth Fund List of abbreviations

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

PJSC —  Public Joint Stock Company

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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: fundservice@wellsfargo.com

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 1-800-260-5969 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.

304907 08-17

SVT5/SAR142 06-17

Semi-Annual Report

June 30, 2017

Wells Fargo VT Opportunity Fund

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	16
Other information	21
List of abbreviations	28

The views expressed and any forward-looking statements are as of June 30, 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 VT Opportunity Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty.

Dear Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo VT Opportunity Fund for the six-month period that ended June 30, 2017. Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty. U.S. and international stocks returned 9.34% and 14.10% for the six-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 -2.27%.

Economies improved in the first quarter of 2017, supporting markets.

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. In March, U.S. Federal Reserve (Fed) officials raised their target interest rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target interest 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 because they benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market.

Steady advancement in many markets marked the second quarter of 2017.

With steady, modest economic growth both in the U.S. and abroad during the second quarter of 2017, most equity markets in the U.S. and abroad advanced with few signs of volatility. Within the economy, U.S. inflation trended lower despite the unemployment rate continuing to decline. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, Fed officials in June again raised their target interest rate by a quarter percentage point to between 1.00% and 1.25%. They also released a blueprint for reducing the Fed’s balance sheet, which had ballooned due to quantitative easing. Although economic momentum increased in Europe, the European Central Bank held its rates steady at low levels because underlying inflation remained subdued. In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar.

¹  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.

²  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted 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.

³  The Bloomberg 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) Wells Fargo VT Opportunity Fund 3

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. 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.

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

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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Opportunity 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

Ann M. Miletti

Christoper Miller^‡

Average annual total returns (%) as of June 30, 2017¹

								Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		Gross		Net3
Class 1	8-26-2011		19.15		13.53		7.17		0.85		0.75
Class 2	5-8-1992		18.83		13.24		7.01		1.10		1.00
Russell 3000® Index4	–		18.51		14.58		7.26		–		–

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If sales loads or charges had been reflected, performance would have been lower.

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.

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. 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 refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Opportunity Fund 5

Ten largest holdings (%) as of June 30, 20175
Apple Incorporated	3.24
Alphabet Incorporated Class C	3.04
Johnson Controls International plc	2.49
PNC Financial Services Group Incorporated	2.20
EOG Resources Incorporated	2.08
Novartis AG ADR	2.08
Medtronic plc	2.03
Chubb Limited	1.85
Starbucks Corporation	1.83
Eaton Corporation plc	1.81

Sector distribution as of June 30, 2017⁶

^‡  Mr. Miller became a portfolio manager of the Fund on March 1, 2017.

¹  Historical performance shown for Class 1 shares prior to their inception reflects the performance of Class 2 shares, and includes the higher expenses applicable to Class 2 shares. If these expenses had not been included, returns for Class 1 shares would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through April 30, 2018, 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 the amounts shown. 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.

⁴  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁵  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.

⁶  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.

6 Wells Fargo VT Opportunity Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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 January 1, 2017 to June 30, 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 separate account charges assessed by participating insurance companies. 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 1-1-2017		Ending account value 6-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class 1
Actual	$	1,000.00	$	1,089.43	$	3.89		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76		0.75	%
Class 2
Actual	$	1,000.00	$	1,087.96	$	5.18		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.84	$	5.01		1.00	%

¹ 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—June 30, 2017 (unaudited) Wells Fargo VT Opportunity Fund 7

Security name	Shares		Value
Common Stocks: 98.89%
Consumer Discretionary: 11.24%
Hotels, Restaurants & Leisure: 2.78%
Royal Caribbean Cruises Limited		16,896	$	1,845,550
Starbucks Corporation		60,608		3,534,052
				5,379,602
Internet & Direct Marketing Retail: 0.98%
Amazon.com Incorporated †		1,952		1,889,536
Media: 3.54%
Comcast Corporation Class A		88,786		3,455,551
Twenty-First Century Fox Incorporated Class B		121,640		3,390,107
				6,845,658
Multiline Retail: 1.45%
Dollar General Corporation		38,835		2,799,615
Specialty Retail: 2.49%
L Brands Incorporated		40,932		2,205,825
Lowe’s Companies Incorporated		33,616		2,606,248
				4,812,073
Consumer Staples: 4.26%
Food & Staples Retailing: 0.55%
The Kroger Company		45,437		1,059,591
Food Products: 1.15%
The Hershey Company		20,821		2,235,551
Household Products: 1.12%
Church & Dwight Company Incorporated		41,699		2,163,344
Personal Products: 1.44%
The Estee Lauder Companies Incorporated Class A		28,932		2,776,893
Energy: 7.25%
Energy Equipment & Services: 1.40%
Halliburton Company		40,775		1,741,500
Weatherford International plc Ǡ		247,365		957,303
				2,698,803
Oil, Gas & Consumable Fuels: 5.85%
Concho Resources Incorporated †		14,362		1,745,414
EOG Resources Incorporated		44,382		4,017,459
Newfield Exploration Company †		44,497		1,266,385
Pioneer Natural Resources Company		14,261		2,275,770
RSP Permian Incorporated †		61,950		1,999,127
				11,304,155

The accompanying notes are an integral part of these financial statements.

8 Wells Fargo VT Opportunity Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Financials: 16.72%
Banks: 6.70%
Bank of the Ozarks Incorporated		52,342	$	2,453,270
KeyCorp		150,972		2,829,215
PNC Financial Services Group Incorporated		34,095		4,257,443
Webster Financial Corporation		65,301		3,410,018
				12,949,946
Capital Markets: 3.81%
E*TRADE Financial Corporation †		80,738		3,070,466
Intercontinental Exchange Incorporated		40,538		2,672,265
TD Ameritrade Holding Corporation		37,589		1,615,951
				7,358,682
Insurance: 6.21%
Aon plc		25,253		3,357,386
Chubb Limited		24,564		3,571,114
The Progressive Corporation		55,847		2,462,294
Willis Towers Watson plc		17,950		2,611,007
				12,001,801
Health Care: 14.07%
Biotechnology: 2.03%
Alexion Pharmaceuticals Incorporated †		9,194		1,118,634
Celgene Corporation †		21,652		2,811,945
				3,930,579
Health Care Equipment & Supplies: 2.03%
Medtronic plc		44,244		3,926,655
Health Care Providers & Services: 2.16%
Cigna Corporation		16,445		2,752,729
Envision Healthcare Corporation †		22,773		1,427,184
				4,179,913
Life Sciences Tools & Services: 4.77%
Agilent Technologies Incorporated		46,213		2,740,893
Bio-Rad Laboratories Incorporated Class A †		15,324		3,467,974
Thermo Fisher Scientific Incorporated		17,195		3,000,012
				9,208,879
Pharmaceuticals: 3.08%
Merck & Company Incorporated		30,068		1,927,058
Novartis AG ADR		48,111		4,015,825
				5,942,883

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Opportunity Fund 9

Security name	Shares		Value
Industrials: 14.08%
Aerospace & Defense: 2.70%
Lockheed Martin Corporation		9,501	$	2,637,573
Rockwell Collins Incorporated		24,559		2,580,660
				5,218,233
Airlines: 1.22%
United Continental Holdings Incorporated †		31,332		2,357,733
Building Products: 2.49%
Johnson Controls International plc		110,881		4,807,800
Commercial Services & Supplies: 1.31%
Republic Services Incorporated		39,899		2,542,763
Electrical Equipment: 1.81%
Eaton Corporation plc		44,915		3,495,736
Machinery: 2.15%
Colfax Corporation †		63,881		2,514,995
Gardner Denver Holdings Incorporated †		75,584		1,633,370
				4,148,365
Road & Rail: 2.40%
Canadian Pacific Railway Limited		7,225		1,161,852
Hertz Global Holdings Incorporated «		117,523		1,351,515
J.B. Hunt Transport Services Incorporated		23,250		2,124,585
				4,637,952
Information Technology: 24.98%
Electronic Equipment, Instruments & Components: 3.04%
Amphenol Corporation Class A		33,736		2,490,392
TE Connectivity Limited		42,952		3,379,463
				5,869,855
Internet Software & Services: 4.58%
Alphabet Incorporated Class C †		6,463		5,873,122
Facebook Incorporated Class A †		19,785		2,987,139
				8,860,261
IT Services: 4.72%
Alliance Data Systems Corporation		10,109		2,594,879
Fidelity National Information Services Incorporated		36,662		3,130,935
MasterCard Incorporated Class A		27,997		3,400,236
				9,126,050
Semiconductors & Semiconductor Equipment: 3.01%
Broadcom Limited		13,622		3,174,607
Texas Instruments Incorporated		34,322		2,640,391
				5,814,998

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo VT Opportunity Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name				Shares		Value
Software: 6.39%
Check Point Software Technologies Limited †					22,774	$	2,484,188
Oracle Corporation					63,103		3,163,984
Red Hat Incorporated †					34,628		3,315,631
Salesforce.com Incorporated †					39,130		3,388,658
							12,352,461
Technology Hardware, Storage & Peripherals: 3.24%
Apple Incorporated					43,445		6,256,949
Materials: 4.89%
Chemicals: 1.57%
The Sherwin-Williams Company					8,631		3,029,136
Containers & Packaging: 1.30%
Crown Holdings Incorporated †					42,316		2,524,573
Metals & Mining: 2.02%
Goldcorp Incorporated-U.S. Exchange Traded Shares					121,050		1,562,756
Steel Dynamics Incorporated					65,309		2,338,715
							3,901,471
Real Estate: 1.40%
Equity REITs: 1.40%
American Tower Corporation					20,510		2,713,883
Total Common Stocks (Cost 149,408,231)							191,122,378
	Yield
Short-Term Investments: 2.03%
Investment Companies: 2.03%
Securities Lending Cash Investment LLC (l)(r)(u)		1.39	%		2,263,903		2,264,130
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.86			1,656,219		1,656,219
Total Short-Term Investments (Cost $3,920,349)							3,920,349

Total investments in securities (Cost $153,328,580) *	100.92	%		195,042,727
Other assets and liabilities, net	(0.92	)		(1,784,856	)
Total net assets	100.00	%	$	193,257,871

† Non-income-earning security

« All or a portion of this security is on loan.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the 7-day annualized yield at period end.

* Cost for federal income tax purposes is $153,644,454 and unrealized gains (losses) consists of:

Gross unrealized gains	$	46,476,337
Gross unrealized losses		(5,078,064	)
Net unrealized gains	$	41,398,273

The accompanying notes are an integral part of these financial statements.

Statement of assets and liabilities—June 30, 2017 (unaudited) Wells Fargo VT Opportunity Fund 11

Assets
Investments
In unaffiliated securities (including $2,191,542 of securities loaned), at value (cost $149,408,231)	$	191,122,378
In affiliated securities, at value (cost $3,920,349)		3,920,349
Total investments, at value (cost $153,328,580)		195,042,727
Receivable for investments sold		805,685
Receivable for Fund shares sold		28,710
Receivable for dividends		173,142
Receivable for securities lending income		856
Prepaid expenses and other assets		1,274
Total assets		196,052,394
Liabilities
Payable for investments purchased		281,222
Payable for Fund shares redeemed		49,908
Payable upon receipt of securities loaned		2,263,919
Management fee payable		100,847
Distribution fee payable		35,377
Administration fees payable		13,653
Accrued expenses and other liabilities		49,597
Total liabilities		2,794,523
Total net assets	$	193,257,871
NET ASSETS CONSIST OF
Paid-in capital	$	125,910,178
Undistributed net investment income		1,793,697
Accumulated net realized gains on investments		23,839,834
Net unrealized gains on investments		41,714,162
Total net assets	$	193,257,871
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	32,950,290
Shares outstanding – Class 11		1,229,657
Net asset value per share – Class 1		$26.80
Net assets – Class 2	$	160,307,581
Shares outstanding – Class 21		5,972,065
Net asset value per share – Class 2		$26.84

¹  The Fund has an unlimited number of authorized shares.

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo VT Opportunity Fund Statement of operations—six months ended June 30, 2017 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $16,112)	$	1,325,770
Income from affiliated securities		5,553
Securities lending income, net		4,129
Total investment income		1,335,452
Expenses
Management fee		680,177
Administration fees
Class 1		13,248
Class 2		64,486
Distribution fee
Class 2		201,519
Custody and accounting fees		10,454
Professional fees		23,052
Shareholder report expenses		28,868
Trustees’ fees and expenses		10,826
Other fees and expenses		3,141
Total expenses		1,035,771
Less: Fee waivers and/or expense reimbursements		(105,491	)
Net expenses		930,280
Net investment income		405,172
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		9,030,150
Affiliated securities		30
Net realized gains on investments		9,030,180
Net change in unrealized gains (losses) on investments		7,085,796
Net realized and unrealized gains (losses) on investments		16,115,976
Net increase in net assets resulting from operations	$	16,521,148

The accompanying notes are an integral part of these financial statements.

Statement of changes in net assets Wells Fargo VT Opportunity Fund 13

	Six months ended June 30, 2017 (unaudited)						Year ended December 31, 2016
Operations
Net investment income				$	405,172					$	842,470
Net realized gains on investments					9,030,180						16,133,502
Net change in unrealized gains (losses) on investments					7,085,796						5,589,001
Net increase in net assets resulting from operations					16,521,148						22,564,973
Distributions to shareholders from
Net investment income
Class 1					0						(757,684	)
Class 2					0						(3,341,814	)
Net realized gains
Class 1					0						(3,290,345	)
Class 2					0						(16,591,308	)
Total distributions to shareholders					0						(23,981,151	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		7,698			200,563			30,809			753,075
Class 2		91,685			2,409,492			154,196			3,770,003
					2,610,055						4,523,078
Reinvestment of distributions
Class 1		0			0			180,958			4,048,029
Class 2		0			0			887,494			19,933,122
		0			0						23,981,151
Payment for shares redeemed
Class 1		(120,964	)		(3,147,556	)		(290,336	)		(7,094,764	)
Class 2		(555,219	)		(14,544,041	)		(1,355,584	)		(32,803,808	)
					(17,691,597	)					(39,898,572	)
Net decrease in net assets resulting from capital share transactions					(15,081,542	)					(11,394,343	)
Total increase (decrease) in net assets					1,439,606						(12,810,521	)
Net assets
Beginning of period					191,818,265						204,628,786
End of period				$	193,257,871					$	191,818,265
Undistributed net investment income				$	1,793,697					$	1,388,525

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo VT Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 1				2016			2015			2014			2013			2012
Net asset value, beginning of period		$24.60			$25.00			$28.82			$26.11			$20.02			$17.40
Net investment income		0.10			0.22			0.57			0.10			0.08			0.10
Net realized and unrealized gains (losses) on investments		2.10			2.59			(1.28	)		2.69			6.11			2.64
Total from investment operations		2.20			2.81			(0.71	)		2.79			6.19			2.74
Distributions to shareholders from
Net investment income		0.00			(0.60	)		(0.12	)		(0.08	)		(0.10	)		(0.11	)
Net realized gains		0.00			(2.61	)		(2.99	)		0.00			0.00			(0.01	)
Total distributions to shareholders		0.00			(3.21	)		(3.11	)		(0.08	)		(0.10	)		(0.12	)
Net asset value, end of period		$26.80			$24.60			$25.00			$28.82			$26.11			$20.02
Total return1		8.94	%		12.52	%		(2.85	)%		10.70	%		30.99	%		15.80	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.85	%		0.84	%		0.82	%		0.84	%		0.86	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		0.62	%		0.65	%		2.02	%		0.37	%		0.32	%		0.46	%
Supplemental data
Portfolio turnover rate		15	%		47	%		41	%		33	%		26	%		36	%
Net assets, end of period (000s omitted)		$32,950			$33,035			$35,539			$42,178			$44,636			$40,950

¹  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 VT Opportunity Fund 15

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 2				2016			2015			2014			2013			2012
Net asset value, beginning of period		$24.67			$25.05			$28.86			$26.15			$20.05			$17.38
Net investment income		0.07			0.13			0.50			0.04			0.02			0.05
Net realized and unrealized gains (losses) on investments		2.10			2.63			(1.28	)		2.69			6.13			2.65
Total from investment operations		2.17			2.76			(0.78	)		2.73			6.15			2.70
Distributions to shareholders from
Net investment income		0.00			(0.53	)		(0.04	)		(0.02	)		(0.05	)		(0.02	)
Net realized gains		0.00			(2.61	)		(2.99	)		0.00			0.00			(0.01	)
Total distributions to shareholders		0.00			(3.14	)		(3.03	)		(0.02	)		(0.05	)		(0.03	)
Net asset value, end of period		$26.84			$24.67			$25.05			$28.86			$26.15			$20.05
Total return1		8.80	%		12.23	%		(3.08	)%		10.42	%		30.68	%		15.52	%
Ratios to average net assets (annualized)
Gross expenses		1.11	%		1.10	%		1.09	%		1.07	%		1.09	%		1.10	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income		0.37	%		0.39	%		1.76	%		0.12	%		0.07	%		0.21	%
Supplemental data
Portfolio turnover rate		15	%		47	%		41	%		33	%		26	%		36	%
Net assets, end of period (000s omitted)		$160,308			$158,783			$169,090			$201,347			$211,077			$188,313

¹  Returns for periods of less than one year are not annualized.

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo VT Opportunity Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Variable 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 Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Opportunity Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of 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 June 30, 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. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally 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 or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer 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.

Notes to financial statements (unaudited) Wells Fargo VT Opportunity Fund 17

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 loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

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.

18 Wells Fargo VT Opportunity Fund Notes to financial statements (unaudited)

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.

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution 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 June 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	21,726,484	$	0	$	0	$	21,726,484
Consumer staples		8,235,379		0		0		8,235,379
Energy		14,002,958		0		0		14,002,958
Financials		32,310,429		0		0		32,310,429
Health care		27,188,909		0		0		27,188,909
Industrials		27,208,582		0		0		27,208,582
Information technology		48,280,574		0		0		48,280,574
Materials		9,455,180		0		0		9,455,180
Real estate		2,713,883		0		0		2,713,883
Short-term investments
Investment companies		1,656,219		0		0		1,656,219
Investments measured at net asset value*								2,264,130
Total assets	$	192,778,597	$	0	$	0	$	195,042,727

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $2,264,130 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2017, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

Notes to financial statements (unaudited) Wells Fargo VT Opportunity Fund 19

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management an indirect wholly owned subsidiary of Wells Fargo, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 0.70% and declining to 0.58% as the average daily net assets of the Fund increase. For the six months ended June 30, 2017, the management fee was equivalent to an annual rate of 0.70% 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. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.30% 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 of 0.08% which is calculated based on the average daily net assets of each class.

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 April 30, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class 1 shares and 1.00% for Class 2 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 six months ended June 30, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $178 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.

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended June 30, 2017 were $28,685,879 and $42,727,143, 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 do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) 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.

For the six months ended June 30, 2017, there were no borrowings by the Fund under the agreement.

20 Wells Fargo VT Opportunity Fund Notes to financial statements (unaudited)

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

8. 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.

9. 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. Management has evaluated the amendments to Regulation S-X and its adoption will result in enhanced financial disclosures in the Fund’s financial statements. Management continues to evaluate the reporting requirements for the new form types (compliance date is June 1, 2018) and the implementation of the liquidity risk management program (compliance date is December 1, 2018).

10. SUBSEQUENT DISTRIBUTIONS

On July 17, 2017, the Fund declared distributions from net investment income, short-term capital gains and long-term capital gains to shareholders of record on July 14, 2017. The per share amounts payable on July 18, 2017 were as follows:

	Net investment income		Short-term capital gains		Long-term capital gains
Class 1	$	0.25044	$	0.30780	$	1.88816
Class 2		0.18266		0.30780		1.88816

These distributions are not reflected in the accompanying financial statements.

Other information (unaudited) Wells Fargo VT Opportunity Fund 21

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 1-800-260-5969, 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.

22 Wells Fargo VT Opportunity Fund Other information (unaudited)

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 148 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 (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	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.	Asset Allocation Trust
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.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. 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).	CIGNA Corporation; Asset Allocation Trust
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.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	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

Other information (unaudited) Wells Fargo VT Opportunity Fund 23

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
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.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and 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. 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.	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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors (Blackrock) from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	Asset Allocation Trust
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	Asset Allocation Trust

24 Wells Fargo VT Opportunity Fund Other information (unaudited)

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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.

¹  Jeremy DePalma acts as Treasurer of 79 funds in the Fund Complex and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-260-5969 or by visiting the website at wellsfargofunds.com.

Other information (unaudited) Wells Fargo VT Opportunity Fund 25

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Variable Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo VT Opportunity Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark

26 Wells Fargo VT Opportunity Fund Other information (unaudited)

index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund was higher than the average performance of the Universe for all periods under review except the five-year period. The Board also noted that the performance of the Fund was lower than its benchmark, the Russell 3000^® Index, for all periods under review.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for all share classes.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were equal to or lower than the sum of these average rates for the Fund’s expense Group for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Other information (unaudited) Wells Fargo VT Opportunity Fund 27

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

28 Wells Fargo VT Opportunity Fund List of abbreviations

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

PJSC —  Public Joint Stock Company

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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: fundservice@wellsfargo.com

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 1-800-260-5969 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.

304908 08-17

SVT6/SAR143 06-17

Semi-Annual Report

June 30, 2017

Wells Fargo VT Small Cap Growth Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	17
Other information	21
List of abbreviations	28

The views expressed and any forward-looking statements are as of June 30, 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 VT Small Cap Growth Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty.

Dear Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo VT Small Cap Growth Fund for the six-month period that ended June 30, 2017. Many markets advanced during this reporting period, supported by modest economic growth despite political uncertainty. U.S. and international stocks returned 9.34% and 14.10% for the six-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 -2.27%.

Economies improved in the first quarter of 2017, supporting markets.

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. In March, U.S. Federal Reserve (Fed) officials raised their target interest rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target interest 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 because they benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market.

Steady advancement in many markets marked the second quarter of 2017.

With steady, modest economic growth both in the U.S. and abroad during the second quarter of 2017, most equity markets in the U.S. and abroad advanced with few signs of volatility. Within the economy, U.S. inflation trended lower despite the unemployment rate continuing to decline. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, Fed officials in June again raised their target interest rate by a quarter percentage point to between 1.00% and 1.25%. They also released a blueprint for reducing the Fed’s balance sheet, which had ballooned due to quantitative easing. Although economic momentum increased in Europe, the European Central Bank held its rates steady at low levels because underlying inflation remained subdued. In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar.

¹  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.

²  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted 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.

³  The Bloomberg 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) Wells Fargo VT Small Cap Growth Fund 3

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. 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.

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

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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-260-5969. We are available 24 hours a day, 7 days a week.

4 Wells Fargo VT Small Cap Growth Fund Performance highlights (unaudited)

The Fund is currently closed to new insurance companies.¹

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Joseph M. Eberhardy, CFA^®, CFP

Thomas C. Ognar, CFA^®

Bruce C. Olson, CFA^®

Average annual total returns (%) as of June 30, 2017²

								Expense ratios3 (%)
	Inception date	1 year		5 year		10 year		Gross		Net4
Class 1	7-16-2010		26.08		12.42		7.54		0.94		0.94
Class 2	5-1-1995		25.96		12.16		7.36		1.19		1.19
Russell 2000® Growth Index5	–		24.40		13.98		7.82		–		–

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If sales loads or charges had been reflected, performance would have been lower.

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.

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. Consult the Fund’s prospectus for additional information on these and other risks.

Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo VT Small Cap Growth Fund 5

Ten largest holdings (%) as of June 30, 20176
The Spectranetics Corporation	3.12
On Assignment Incorporated	2.96
Q2 Holdings Incorporated	2.75
Proofpoint Incorporated	2.59
InterXion Holding NV	2.46
WageWorks Incorporated	2.35
LendingTree Incorporated	2.18
Ligand Pharmaceuticals Incorporated	2.07
John Bean Technologies Corporation	2.03
Integra LifeSciences Holdings Corporation	1.93

Sector distribution as of June 30, 2017⁷

¹  Please see the Fund’s current Statement of Additional Information for further details.

²  Historical performance shown for Class 1 shares prior to their inception reflects the performance of Class 2 shares, and includes the higher expenses applicable to Class 2 shares. If these expenses had not been included, returns for Class 1 shares would be higher.

³  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

⁴  The manager has contractually committed through April 30, 2018, 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 0.95% for Class 1 and 1.20% for Class 2. 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.

⁵  The Russell 2000^® Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁶  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.

⁷  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.

6 Wells Fargo VT Small Cap Growth Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) 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 January 1, 2017 to June 30, 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 separate account charges assessed by participating insurance companies. 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 separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 1-1-2017		Ending account value 6-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class 1
Actual	$	1,000.00	$	1,151.59	$	5.01		0.94	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.13	$	4.71		0.94	%
Class 2
Actual	$	1,000.00	$	1,151.26	$	6.35		1.19	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.89	$	5.96		1.19	%

¹ 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—June 30, 2017 (unaudited) Wells Fargo VT Small Cap Growth Fund 7

Security name	Shares		Value
Common Stocks: 99.06%
Consumer Discretionary: 13.16%
Auto Components: 1.43%
Cooper-Standard Holdings Incorporated †		22,090	$	2,228,218
LCI Industries		12,520		1,282,048
				3,510,266
Diversified Consumer Services: 0.77%
Grand Canyon Education Incorporated †		24,220		1,899,090
Hotels, Restaurants & Leisure: 3.71%
Dave & Buster’s Entertainment Incorporated †		12,600		838,026
Papa John’s International Incorporated		5,400		387,504
Planet Fitness Incorporated Class A		111,826		2,610,019
Playa Hotels & Resorts S.L. †		117,200		1,400,540
The Habit Restaurants Incorporated Class A «†		113,748		1,797,218
Wingstop Incorporated «		67,149		2,074,904
				9,108,211
Household Durables: 0.76%
iRobot Corporation †		11,100		933,954
Universal Electronics Incorporated †		13,990		935,232
				1,869,186
Leisure Products: 1.06%
MCBC Holdings Incorporated		71,612		1,400,015
Nautilus Group Incorporated †		63,160		1,209,514
				2,609,529
Media: 1.71%
IMAX Corporation †		73,710		1,621,620
Nexstar Broadcasting Group Incorporated		42,900		2,565,420
				4,187,040
Multiline Retail: 1.15%
Ollie’s Bargain Outlet Holdings Incorporated †		66,410		2,829,066
Specialty Retail: 2.57%
Camping World Holdings Incorporated Class A		30,125		929,356
Five Below Incorporated †		23,408		1,155,653
Lithia Motors Incorporated Class A «		44,820		4,223,389
				6,308,398
Energy: 2.02%
Oil, Gas & Consumable Fuels: 2.02%
Matador Resources Company Ǡ		48,563		1,037,791
PDC Energy Incorporated †		25,300		1,090,683
RSP Permian Incorporated †		87,521		2,824,303
				4,952,777

The accompanying notes are an integral part of these financial statements.

8 Wells Fargo VT Small Cap Growth Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Financials: 6.06%
Capital Markets: 3.01%
Financial Engines Incorporated «		81,060	$	2,966,796
MarketAxess Holdings Incorporated		14,178		2,851,196
Stifel Financial Corporation †		34,400		1,581,712
				7,399,704
Insurance: 0.88%
Kinsale Capital Group Incorporated		57,740		2,154,279
Thrifts & Mortgage Finance: 2.17%
LendingTree Incorporated Ǡ		31,028		5,343,022
Health Care: 26.92%
Biotechnology: 7.01%
Clovis Oncology Incorporated †		28,000		2,621,640
Exact Sciences Corporation †		39,800		1,407,726
Ligand Pharmaceuticals Incorporated Ǡ		41,838		5,079,133
MiMedx Group Incorporated Ǡ		56,500		845,805
Repligen Corporation †		90,520		3,751,149
Sage Therapeutics Incorporated †		5,800		461,912
Spark Therapeutics Incorporated Ǡ		24,510		1,464,227
Ultragenyx Pharmaceutical Incorporated Ǡ		25,482		1,582,687
				17,214,279
Health Care Equipment & Supplies: 11.75%
Cantel Medical Corporation		19,200		1,495,872
Genmark Diagnostics Incorporated †		40,000		473,200
Glaukos Corporation Ǡ		69,000		2,861,430
Inogen Incorporated †		34,230		3,266,227
Integra LifeSciences Holdings Corporation †		86,960		4,740,190
iRhythm Technologies Incorporated †		51,576		2,191,464
Nevro Corporation †		54,549		4,060,082
NxStage Medical Incorporated †		84,350		2,114,655
The Spectranetics Corporation †		199,707		7,668,749
				28,871,869
Health Care Providers & Services: 4.52%
Acadia Healthcare Company Incorporated Ǡ		66,200		3,268,956
HealthEquity Incorporated †		90,625		4,515,844
Surgery Partners Incorporated †		77,146		1,755,072
Teladoc Incorporated Ǡ		44,846		1,556,156
				11,096,028
Health Care Technology: 1.26%
Evolent Health Incorporated Class A «†		97,100		2,461,485
Vocera Communications Incorporated †		23,800		628,796
				3,090,281

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Small Cap Growth Fund 9

Security name	Shares		Value
Life Sciences Tools & Services: 1.02%
Cambrex Corporation †		14,700	$	878,325
INC Research Holdings Incorporated Class A †		28,003		1,638,176
				2,516,501
Pharmaceuticals: 1.36%
Dova Pharmaceuticals Incorporated †		30,545		680,848
Heska Corporation †		9,060		924,754
Supernus Pharmaceuticals Incorporated †		40,500		1,745,550
				3,351,152
Industrials: 20.53%
Aerospace & Defense: 1.71%
HEICO Corporation		20,100		1,443,984
Mercury Computer Systems Incorporated †		65,217		2,744,984
				4,188,968
Airlines: 0.99%
SkyWest Incorporated		69,440		2,437,344
Building Products: 1.63%
Apogee Enterprises Incorporated		55,590		3,159,736
JELD-WEN Holding Incorporated †		26,110		847,531
				4,007,267
Commercial Services & Supplies: 0.68%
Advanced Disposal Services Incorporated †		73,115		1,661,904
Construction & Engineering: 3.19%
Dycom Industries Incorporated Ǡ		40,310		3,608,551
Granite Construction Incorporated		46,180		2,227,723
MasTec Incorporated †		44,400		2,004,660
				7,840,934
Machinery: 5.12%
John Bean Technologies Corporation		50,940		4,992,120
Milacron Holdings Corporation †		128,257		2,256,041
Mueller Water Products Incorporated Class A		126,160		1,473,549
REV Group Incorporated		43,747		1,210,917
Rexnord Corporation †		113,720		2,643,990
				12,576,617
Professional Services: 5.32%
On Assignment Incorporated †		134,481		7,282,146
WageWorks Incorporated †		85,947		5,775,638
				13,057,784

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo VT Small Cap Growth Fund Portfolio of investments—June 30, 2017 (unaudited)

Security name	Shares		Value
Trading Companies & Distributors: 1.89%
Beacon Roofing Supply Incorporated †		56,570	$	2,771,930
BMC Stock Holdings Incorporated †		86,140		1,882,159
				4,654,089
Information Technology: 30.37%
Communications Equipment: 0.30%
Quantenna Communications Incorporated †		39,057		742,083
Electronic Equipment, Instruments & Components: 1.18%
Littelfuse Incorporated		17,540		2,894,100
Internet Software & Services: 11.43%
2U Incorporated †		71,560		3,357,595
Benefitfocus Incorporated †		20,400		741,540
Cloudera Incorporated Ǡ		29,689		475,618
Coupa Software Incorporated †		45,531		1,319,488
Criteo SA ADR Ǡ		16,200		794,610
Envestnet Incorporated †		96,811		3,833,716
Five9 Incorporated †		159,890		3,440,833
GrubHub Incorporated Ǡ		10,600		462,160
LogMeIn Incorporated		31,360		3,277,120
Q2 Holdings Incorporated †		182,776		6,753,573
SPS Commerce Incorporated †		22,722		1,448,755
Wix.com Limited †		11,400		793,440
Xactly Corporation †		87,215		1,364,915
				28,063,363
IT Services: 2.46%
InterXion Holding NV †		131,890		6,037,924
Semiconductors & Semiconductor Equipment: 4.57%
Cavium Incorporated †		37,540		2,332,360
MaxLinear Incorporated Class A †		81,510		2,273,314
Microsemi Corporation †		63,290		2,961,972
Monolithic Power Systems Incorporated		37,990		3,662,236
				11,229,882
Software: 10.43%
Appian Corporation Ǡ		18,086		328,261
BlackLine Incorporated †		45,943		1,642,003
CyberArk Software Limited Ǡ		76,690		3,830,666
HubSpot Incorporated †		51,048		3,356,406
Paycom Software Incorporated †		28,020		1,916,848
Paylocity Holding Corporation Ǡ		36,677		1,657,067
Proofpoint Incorporated Ǡ		73,280		6,362,902
RealPage Incorporated †		27,100		974,245
RingCentral Incorporated Class A †		73,230		2,676,553
Talend SA ADR Ǡ		82,929		2,884,271
				25,629,222
Total Common Stocks (Cost $189,476,055)				243,332,159

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2017 (unaudited) Wells Fargo VT Small Cap Growth Fund 11

Security name	Yield			Shares		Value
Short-Term Investments: 16.86%
Investment Companies: 16.86%
Securities Lending Cash Investment LLC (l)(r)(u)		1.39	%		38,041,986	$	38,045,790
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.86			3,377,044		3,377,044
Total Short-Term Investments (Cost $41,420,204)							41,422,834

Total investments in securities (Cost $230,896,259) *	115.92	%		284,754,993
Other assets and liabilities, net	(15.92	)		(39,113,383	)
Total net assets	100.00	%	$	245,641,610

† Non-income-earning security

« All or a portion of this security is on loan.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment company purchased with cash collateral received from securities on loan.

(u) The rate represents the 7-day annualized yield at period end.

* Cost for federal income tax purposes is $230,983,822 and unrealized gains (losses) consists of:

Gross unrealized gains	$	58,351,729
Gross unrealized losses		(4,580,558	)
Net unrealized gains	$	53,771,171

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo VT Small Cap Growth Fund Statement of assets and liabilities—June 30, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $37,213,525 of securities loaned), at value (cost $189,476,055)	$	243,332,159
In affiliated securities, at value (cost $41,420,204)		41,422,834
Total investments, at value (cost $230,896,259)		284,754,993
Receivable for investments sold		130,433
Receivable for Fund shares sold		242,277
Receivable for dividends		27,660
Receivable for securities lending income		12,504
Prepaid expenses and other assets		3,097
Total assets		285,170,964
Liabilities
Payable for investments purchased		1,070,559
Payable for Fund shares redeemed		112,299
Payable upon receipt of securities loaned		38,042,285
Management fee payable		170,623
Distribution fee payable		48,470
Administration fees payable		17,063
Accrued expenses and other liabilities		68,055
Total liabilities		39,529,354
Total net assets	$	245,641,610
NET ASSETS CONSIST OF
Paid-in capital	$	170,093,065
Accumulated net investment loss		(1,026,455	)
Accumulated net realized gains on investments		22,716,266
Net unrealized gains on investments		53,858,734
Total net assets	$	245,641,610
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	22,257,729
Shares outstanding – Class 11		2,270,432
Net asset value per share – Class 1		$9.80
Net assets – Class 2		$223,383,881
Shares outstanding – Class 21		23,298,865
Net asset value per share – Class 2		$9.59

¹  The Fund has an unlimited number of authorized shares.

The accompanying notes are an integral part of these financial statements.

Statement of operations—six months ended June 30, 2017 (unaudited) Wells Fargo VT Small Cap Growth Fund 13

Investment income
Dividends	$	215,837
Securities lending income, net		114,583
Income from affiliated securities		13,369
Total investment income		343,789
Expenses
Management fee		938,892
Administration fees
Class 1		8,597
Class 2		85,292
Distribution fee
Class 2		266,537
Custody and accounting fees		15,690
Professional fees		20,714
Shareholder report expenses		21,734
Trustees’ fees and expenses		10,076
Other fees and expenses		1,708
Total expenses		1,369,240
Net investment loss		(1,025,451	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		16,403,975
Affiliated securities		292
Net realized gains on investments		16,404,267
Net change in unrealized gains (losses) on:
Unaffiliated securities		17,595,227
Affiliated securities		(456	)
Net change in unrealized gains (losses) on investments		17,594,771
Net realized and unrealized gains (losses) on investments		33,999,038
Net increase in net assets resulting from operations	$	32,973,587

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo VT Small Cap Growth Fund Statement of changes in net assets

	Six months ended June 30, 2017 (unaudited)						Year ended December 31, 2016
Operations
Net investment loss				$	(1,025,451	)				$	(726,892	)
Net realized gains on investments					16,404,267						6,026,826
Net change in unrealized gains (losses) on investments					17,594,771						9,699,962
Net increase in net assets resulting from operations					32,973,587						14,999,896
Distributions to shareholders from
Net realized gains
Class 1					0						(1,952,885	)
Class 2					0						(19,584,093	)
Total distributions to shareholders					0						(21,536,978	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		98,900			905,291			225,807			1,843,852
Class 2		926,431			8,391,639			1,939,958			15,546,526
					9,296,930						17,390,378
Reinvestment of distributions
Class 1		0			0			248,775			1,952,885
Class 2		0			0			2,543,389			19,584,093
					0						21,536,978
Payment for shares redeemed
Class 1		(244,012	)		(2,255,338	)		(633,474	)		(5,195,825	)
Class 2		(1,956,006	)		(17,645,789	)		(6,663,346	)		(53,191,948	)
					(19,901,127	)					(58,387,773	)
Net decrease in net assets resulting from capital share transactions					(10,604,197	)					(19,460,417	)
Total increase (decrease) in net assets					22,369,390						(25,997,499	)
Net assets
Beginning of period					223,272,220						249,269,719
End of period				$	245,641,610					$	223,272,220
Accumulated net investment loss				$	(1,026,455	)				$	(1,004	)

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo VT Small Cap Growth Fund 15

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 1				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.51			$8.70			$10.08			$11.32			$7.93			$7.71
Net investment loss		(0.02	)		(0.01	)1		(0.06	)		(0.07	)		(0.07	)		(0.04	)
Net realized and unrealized gains (losses) on investments		1.31			0.65			(0.02	)		(0.21	)		3.98			0.65
Total from investment operations		1.29			0.64			(0.08	)		(0.28	)		3.91			0.61
Distributions to shareholders from
Net realized gains		0.00			(0.83	)		(1.30	)		(0.96	)		(0.52	)		(0.39	)
Net asset value, end of period		$9.80			$8.51			$8.70			$10.08			$11.32			$7.93
Total return2		15.16	%		8.10	%		(2.63	)%		(1.67	)%		50.55	%		8.11	%
Ratios to average net assets (annualized)
Gross expenses		0.94	%		0.94	%		0.93	%		0.93	%		0.93	%		0.94	%
Net expenses		0.94	%		0.94	%		0.93	%		0.93	%		0.93	%		0.94	%
Net investment loss		(0.65	)%		(0.10	)%		(0.69	)%		(0.75	)%		(0.73	)%		(0.56	)%
Supplemental data
Portfolio turnover rate		37	%		89	%		77	%		54	%		67	%		65	%
Net assets, end of period (000s omitted)		$22,258			$20,554			$22,402			$28,121			$35,192			$25,699

¹  Calculated based upon average shares outstanding

²  Returns for periods of less than one year are not annualized.

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo VT Small Cap Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended June 30, 2017 (unaudited)			Year ended December 31
CLASS 2				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.33			$8.56			$9.96			$11.22			$7.88			$7.68
Net investment loss		(0.04	)		(0.03	)		(0.08	)		(0.10	)		(0.09	)		(0.07	)
Net realized and unrealized gains (losses) on investments		1.30			0.63			(0.02	)		(0.20	)		3.95			0.66
Total from investment operations		1.26			0.60			(0.10	)		(0.30	)		3.86			0.59
Distributions to shareholders from
Net realized gains		0.00			(0.83	)		(1.30	)		(0.96	)		(0.52	)		(0.39	)
Net asset value, end of period		$9.59			$8.33			$8.56			$9.96			$11.22			$7.88
Total return1		15.13	%		7.75	%		(2.88	)%		(1.88	)%		50.23	%		7.87	%
Ratios to average net assets (annualized)
Gross expenses		1.19	%		1.19	%		1.18	%		1.18	%		1.18	%		1.19	%
Net expenses		1.19	%		1.19	%		1.18	%		1.18	%		1.18	%		1.19	%
Net investment loss		(0.90	)%		(0.35	)%		(0.93	)%		(1.00	)%		(0.98	)%		(0.81	)%
Supplemental data
Portfolio turnover rate		37	%		89	%		77	%		54	%		67	%		65	%
Net assets, end of period (000s omitted)		$223,384			$202,718			$226,867			$226,966			$250,473			$182,213

¹  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 (unaudited) Wells Fargo VT Small Cap Growth Fund 17

1. ORGANIZATION

Wells Fargo Variable 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 Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo VT Small Cap Growth Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of 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.

Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally 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 of the Fund. 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 of Wells Fargo Funds Management, LLC (“Funds Management”). 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 or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer 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.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

18 Wells Fargo VT Small Cap Growth Fund Notes to financial statements (unaudited)

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

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.

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.

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution 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.

Notes to financial statements (unaudited) Wells Fargo VT Small Cap Growth Fund 19

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	32,320,786	$	0	$	0	$	32,320,786
Energy		4,952,777		0		0		4,952,777
Financials		14,897,005		0		0		14,897,005
Health care		66,140,110		0		0		66,140,110
Industrials		50,424,907		0		0		50,424,907
Information technology		74,596,574		0		0		74,596,574
Short-term investments
Investment companies		3,377,044		0		0		3,377,044
Investments measured at net asset value*								38,045,790
Total assets	$	246,709,203	$	0	$	0	$	284,754,993

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $38,045,790 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 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, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 0.80% and declining to 0.63% as the average daily net assets of the Fund increase. For the six months ended June 30, 2017, the management fee was equivalent to an annual rate of 0.80% 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. WellsCap 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 a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

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 April 30, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.95% for Class 1 shares and 1.20% for Class 2 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 six months ended June 30, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $207 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.

20 Wells Fargo VT Small Cap Growth Fund Notes to financial statements (unaudited)

Distribution fee

The Trust has adopted a distribution plan for Class 2 shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended June 30, 2017 were $86,352,056 and $96,947,946, 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 do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) 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.

For the six months ended June 30, 2017, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

8. 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.

9. 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. Management has evaluated the amendments to Regulation S-X and its adoption will result in enhanced financial disclosures in the Fund’s financial statements. Management continues to evaluate the reporting requirements for the new form types (compliance date is June 1, 2018) and the implementation of the liquidity risk management program (compliance date is December 1, 2018).

10. SUBSEQUENT DISTRIBUTIONS

On July 17, 2017, the Fund declared distributions from long-term capital gains to shareholders of record on July 14, 2017. The per share amounts payable on July 18, 2017 were as follows:

	Long-term capital gains
Class 1	$	0.28153
Class 2		0.28153

These distributions are not reflected in the accompanying financial statements.

Other information (unaudited) Wells Fargo VT Small Cap Growth Fund 21

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 1-800-260-5969, 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.

22 Wells Fargo VT Small Cap Growth Fund Other information (unaudited)

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 148 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 (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	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.	Asset Allocation Trust
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.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. 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).	CIGNA Corporation; Asset Allocation Trust
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.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	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

Other information (unaudited) Wells Fargo VT Small Cap Growth Fund 23

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
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.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and 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. 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.	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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors (Blackrock) from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	Asset Allocation Trust
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	Asset Allocation Trust

24 Wells Fargo VT Small Cap Growth Fund Other information (unaudited)

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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.

¹  Jeremy DePalma acts as Treasurer of 79 funds in the Fund Complex and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-260-5969 or by visiting the website at wellsfargofunds.com.

Other information (unaudited) Wells Fargo VT Small Cap Growth Fund 25

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Variable Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo VT Small Cap Growth Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2016. In certain cases, the Board also considered more current results for various time periods ended March 31, 2017. The Board

26 Wells Fargo VT Small Cap Growth Fund Other information (unaudited)

considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund was lower than the average performance of its Universe for all periods under review ended December 31, 2016, although the Board noted that the performance ranking of the Fund in the Universe had improved from the prior quarter-end for the one-, three- and five-year periods ended March 31, 2017. The Board also noted that the performance of the Fund was lower than its benchmark, the Russell 2000 Growth Index, for all periods under review ended December 31, 2016.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were in range of the median net operating expense ratios of the expense Groups for all share classes.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of these average rates for the expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also

Other information (unaudited) Wells Fargo VT Small Cap Growth Fund 27

received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

28 Wells Fargo VT Small Cap Growth Fund List of abbreviations

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

PJSC —  Public Joint Stock Company

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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: fundservice@wellsfargo.com

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 1-800-260-5969 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.

304909 08-17

SVT7/SAR144 06-17

ITEM 2. CODE OF ETHICS

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

A Portfolio of Investments for each series of Wells Fargo Variable Trust is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Variable Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Not applicable.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Variable Trust
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	August 25, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Wells Fargo Variable Trust
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	August 25, 2017
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date:	August 25, 2017

EX-99.CERT

CERTIFICATION

I, Andrew Owen, certify that:

1. I have reviewed this report on Form N-CSRS of Wells Fargo Variable Trust on behalf of the following series: Wells Fargo VT Discovery Fund, Wells Fargo VT Index Asset Allocation Fund, Wells Fargo VT International Equity Fund, Wells Fargo VT Omega Growth Fund, Wells Fargo VT Opportunity Fund, and Wells Fargo VT Small Cap Growth Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s Board of Trustees (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 25, 2017

/s/ Andrew Owen

Andrew Owen

President

Wells Fargo Variable Trust

Exhibit 99.CERT

CERTIFICATION

I, Jeremy DePalma, certify that:

1. I have reviewed this report on Form N-CSRS of Wells Fargo Variable Trust on behalf of the following series: Wells Fargo VT Discovery Fund, Wells Fargo VT Index Asset Allocation Fund, Wells Fargo VT International Equity Fund, Wells Fargo VT Omega Growth Fund, Wells Fargo VT Opportunity Fund, and Wells Fargo VT Small Cap Growth Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s Board of Trustees (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 25, 2017

/s/ Jeremy DePalma

Jeremy DePalma

Treasurer

Wells Fargo Variable Trust

Exhibit 99.CERT

EX-99.906CERT

SECTION 906 CERTIFICATION

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Wells Fargo Variable Trust (the “Trust”), hereby certifies, to the best of his knowledge, that the Trust’s report on Form N-CSRS for the six months ended June 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

Date: August 25, 2017

By:
	/s/ Andrew Owen
	Andrew Owen
	President
	Wells Fargo Variable Trust

This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSRS with the Securities and Exchange Commission.

Exhibit 99.906CERT

SECTION 906 CERTIFICATION

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Wells Fargo Variable Trust (the “Trust”), hereby certifies, to the best of his knowledge, that the Trust’s report on Form N-CSRS for the six months ended June 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

Date: August 25, 2017

By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
	Wells Fargo Variable Trust

This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSRS with the Securities and Exchange Commission.

Exhibit 99.906CERT