Form N-CSRS

N-CSRS 1 d384227dncsrs.htm FORM N-CSRS Form N-CSRS

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09253

Wells Fargo Funds Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: December 31, 2011

Date of reporting period: June 30, 2012

ITEM 1.

REPORT TO SHAREHOLDERS

Wells Fargo Managed Account CoreBuilder Shares^SM - Series G

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Semi-Annual Report

June 30, 2012

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Contents



Performance Highlights			2

Fund Expenses			4

Portfolio of Investments			5

Financial Statements
Statement of Assets and Liabilities			7
Statement of Operations			8
Statements of Changes in Net Assets			9
Financial Highlights			10

Notes to Financial Statements			11

Other Information			16

List of Abbreviations			22

The views expressed and any forward-looking statements are as of June 30, 2012, 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 Advantage 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, disclaims 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 Managed Account CoreBuilder Shares – Series G		Performance Highlights (Unaudited)

INVESTMENT OBJECTIVE

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

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGER

Michael J. Bray, CFA

FUND INCEPTION

April 14, 2008


TEN LARGEST LONG-TERM HOLDINGS¹ (AS OF JUNE 30, 2012)
FNMA, 4.50%, 6/25/2039			13.98%
FHLMC, 3.50%, 10/15/2041			8.56%
FNMA, 5.00%, 8/1/2040			8.37%
FHLMC, 5.50%, 12/1/2038			8.20%
FNMA, 4.00%, 7/25/2040			7.35%
FHLMC, 4.00%, 5/15/2040			5.52%
GNMA, 4.50%, 4/20/2040			5.40%
FNMA, 6.00%, 7/25/2035			4.66%
FNMA, 4.00%, 4/25/2024			3.76%
GNMA, 4.00%, 4/20/2041			3.08%


PORTFOLIO ALLOCATION² (AS OF JUNE 30, 2012)

1.	The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

2.	Portfolio allocation is subject to change and is calculated based on the total investments of the Fund.


Performance Highlights (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			3

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF JUNE 30, 2012)


	Inception Date		6 Months*		1 Year		Life of Fund
Wells Fargo Managed Account CoreBuilder Shares - Series G		04/14/2008		2.08		6.08		6.76
Barclays U.S. Aggregate Ex. Credit Bond Index³				1.64		6.77		5.58

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

Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-368-0627.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. Government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks. The U.S. Government guarantee applies to certain of the underlying securities and NOT to the shares of the Fund.

CoreBuilder Shares are a series of investment options within the separately managed accounts advised or subadvised by Wells Fargo Funds Management, LLC. The shares are fee-waived mutual funds that enable certain separately managed account investors to achieve greater diversification than smaller managed accounts might otherwise achieve.

3.	The Barclays U.S. Aggregate Ex. Credit Bond Index is composed of the Barclays U.S. Government Bond Index and the Barclays U.S. Mortgage-Backed Securities Index and it includes Treasury issues, agency issues, and mortgage-backed securities. You cannot invest directly in an index.


4		Wells Fargo Managed Account CoreBuilder Shares – Series G		Fund Expenses (Unaudited)

As a shareholder of the Fund, you incur ongoing costs. 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, 2012 to June 30, 2012.

Actual Expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses Paid During Period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. 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.


	Beginning Account Value 01-01-2012		Ending Account Value 06-30-2012		Expenses Paid During the Period¹			Net Annual Expense Ratio
Actual	$	1,000.00	$	1,020.82	$	0.00	*		0.00	%*
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.86	$	0.00	*		0.00	%*

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

Generally, no ordinary operating fees or expenses are charged to the Fund. Wells Fargo Funds Management, LLC has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment-related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent, interest, taxes, leverage expenses and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term.


Portfolio of Investments—June 30, 2012 (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			5


Security Name	Interest Rate			Maturity Date		Principal		Value


Agency Securities: 100.16%
FHLMC %%		3.50	%		10/15/2041	$	1,270,000	$	1,332,508
FHLMC %%		4.00			05/15/2040		810,000		859,739
FHLMC		4.50			01/01/2024		130,142		138,365
FHLMC		5.00			08/01/2040		41,271		44,733
FHLMC		5.50			11/01/2023		41,984		45,919
FHLMC ##		5.50			12/01/2038		1,174,343		1,276,737
FHLMC		7.50			05/01/2038		41,652		51,439
FHLMC Series T-42 Class A5		7.50			02/25/2042		95,630		116,273
FHLMC Structured Pass-Through Securities Series T-59 Class 2A1 ±		2.93			10/25/2043		71,421		73,523
FNMA %%		3.00			02/25/2042		335,000		343,637
FNMA		3.32			02/01/2015		163,702		172,109
FNMA		3.47			11/01/2020		68,322		73,816
FNMA		3.48			11/01/2020		68,420		73,964
FNMA %%		3.50			12/25/2025		145,000		153,156
FNMA		3.50			02/01/2026		121,251		128,252
FNMA %%		4.00			04/25/2024		550,000		584,891
FNMA %%		4.00			07/25/2040		1,075,000		1,144,371
FNMA		4.15			07/01/2014		96,076		101,088
FNMA %%		4.50			06/25/2039		2,030,000		2,177,809
FNMA		4.62			07/01/2013		44,698		46,036
FNMA		4.68			02/01/2020		29,315		33,521
FNMA %%		5.00			05/25/2019		425,000		458,070
FNMA %%		5.00			11/25/2036		382,000		413,455
FNMA		5.00			08/01/2040		1,198,216		1,303,299
FNMA		5.50			08/01/2038		158,886		175,371
FNMA		5.60			11/01/2013		89,163		93,026
FNMA %%		6.00			07/25/2035		660,000		725,278
FNMA		6.00			08/01/2038		93,151		102,448
FNMA		6.00			11/01/2038		156,463		172,080
FNMA		6.50			07/01/2037		139,301		158,277
FNMA		7.00			03/01/2024		86,941		92,524
FNMA		7.00			11/01/2037		18,119		20,464
FNMA		7.50			10/01/2037		92,510		108,352
FNMA		7.50			05/01/2038		14,969		16,585
FNMA Series 2005-W4 Class 3A ±		2.40			06/25/2035		43,416		45,567
FNMA %%		4.50			03/25/2021		240,000		257,250
FNMA Whole Loan Series 2004-W11 Class 1A3		7.00			05/25/2044		91,273		103,494
FNMA Whole Loan Series 2004-W15 Class 1A3		7.00			08/25/2044		68,363		79,525
GNMA %%		4.00			04/20/2041		440,000		480,013
GNMA %%		4.50			04/20/2040		765,000		841,022
GNMA		5.00			07/20/2040		367,908		408,017
GNMA Series 2002-53 Class IO ±(c)		0.00			04/16/2042		723,313		4
GNMA Series 2004-10 Class C		4.67			07/16/2031		76,156		78,837
GNMA Series 2005-90 Class A		3.76			09/16/2028		17,961		18,300
GNMA Series 2007-12 Class A		3.96			06/16/2031		41,881		42,312
GNMA Series 2007-75 Class B		5.05			10/16/2014		127,772		131,367
GNMA Series 2008-22 Class XM ±(c)		2.61			02/16/2050		2,540,523		92,988
GNMA Series 2008-86 Class D		5.46			06/16/2040		135,000		160,442

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


6		Wells Fargo Managed Account CoreBuilder Shares – Series G		Portfolio of Investments—June 30, 2012 (Unaudited)


Security Name	Interest Rate			Maturity Date		Principal		Value


Agency Securities (continued)
GNMA Series 2010-74 Class B		3.81	%		08/16/2039	$	45,000	$	48,168

Total Agency Securities (Cost $15,375,659)									15,598,421


Non-Agency Mortgage Backed Securities: 5.11%
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.92			03/15/2049		80,000		91,159
Citigroup Commercial Mortgage Trust Series 2006-C5 Class A4		5.43			10/15/2049		80,000		91,042
Commercial Mortgage Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10/15/2037		40,267		40,301
Credit Suisse Mortgage Capital Certificates Series 2006-C3 Class A3 ±		6.01			06/15/2038		59,000		66,863
Lehman Brothers-UBS Commercial Mortgage Trust Series 2007-C1 Class A4		5.42			02/15/2040		100,000		112,851
Lehman Brothers-UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			02/15/2031		90,000		100,262
Merrill Lynch Mortgage Trust Series 2005-CKI1 Class A6 ±		5.39			11/12/2037		135,000		150,539
Morgan Stanley Capital I Series 2004-HQ4 Class A7		4.97			04/14/2040		55,000		57,796
Morgan Stanley Capital I Series 2006-HQ8 Class A4 ±		5.60			03/12/2044		76,000		84,683

Total Non-Agency Mortgage Backed Securities (Cost $772,397)									795,496


	Yield					Shares
Short-Term Investments: 55.96%

Investment Companies: 55.64%
Wells Fargo Advantage Government Money Market Fund, Institutional Class ##(l)(u)		0.01					8,665,652		8,665,652


						Principal
U.S. Treasury Securities: 0.32%
U. S. Treasury Bill #(z)		0.09			09/27/2012	$	50,000		49,990


Total Short-Term Investments (Cost $8,715,640)									8,715,642


Total Investments in Securities
(Cost $24,863,696) *	161.23	%		25,109,559
Other Assets and Liabilities, Net	(61.23	)		(9,536,040	)

Total Net Assets	100.00	%	$	15,573,519

%%	Security issued on a when-issued (TBA) basis

##	All or a portion of this security has been segregated for when-issued securities.

±	Variable rate investment

(c)	Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

(l)	Investment in an affiliate

(u)	Rate shown is 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. Rate represents yield to maturity at time of purchase.

*	Cost for federal income tax purposes is $24,863,696 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	315,290
Gross unrealized depreciation		(69,427	)

Net unrealized appreciation	$	245,863

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


Statement of Assets and Liabilities—June 30, 2012 (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			7




Assets
Investments
In unaffiliated securities, at value (see cost below)	$	16,443,907
In affiliated securities, at value (see cost below)		8,665,652

Total investments, at value (see cost below)		25,109,559
Receivable for investments sold		577,561
Receivable for interest		46,569

Total assets		25,733,689


Liabilities
Dividends payable		5,115
Payable for investments purchased		10,154,226
Payable for Fund shares redeemed		337
Payable for daily variation margin on open futures contracts		492

Total liabilities		10,160,170

Total net assets	$	15,573,519


NET ASSETS CONSIST OF
Paid-in capital	$	14,931,440
Undistributed net investment income		13,224
Accumulated net realized gains on investments		379,250
Net unrealized gains on investments		249,605

Total net assets	$	15,573,519


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets	$	15,573,519
Shares outstanding		1,485,259
Net asset value per share		$10.49

Investments in unaffiliated securities, at cost	$	16,198,044

Investments in affiliated securities, at cost	$	8,665,652

Total investments, at cost	$	24,863,696

1.	The Fund has an unlimited number of authorized shares.

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


8		Wells Fargo Managed Account CoreBuilder Shares – Series G		Statement of Operations—Six Months Ended June 30, 2012 (Unaudited)




Investment income
Interest	$	103,856
Income from affiliated securities		431

Total investment income		104,287


Expenses
Custody and accounting fees		4,858
Professional fees		8,094
Shareholder report expenses		4,850
Trustees’ fees and expenses		6,728
Other fees and expenses		1,081

Total expenses		25,611
Less: Fee waivers and/or expense reimbursements		(25,611	)

Net expenses		0

Net investment income		104,287


REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized gains on:
Unaffiliated securities		297,910
Futures transactions		20,196

Net realized gains on investments		318,106


Net change in unrealized gains (losses) on:
Unaffiliated securities		(112,651	)
Futures transactions		(1,484	)

Net change in unrealized gains (losses) on investments		(114,135	)

Net realized and unrealized gains (losses) on investments		203,971

Net increase in net assets resulting from operations	$	308,258

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


Statements of Changes in Net Assets		Wells Fargo Managed Account CoreBuilder Shares – Series G			9


	Six Months Ended June 30, 2012 (Unaudited)						Year Ended December 31, 2011

Operations
Net investment income				$	104,287					$	395,150
Net realized gains on investments					318,106						452,526
Net change in unrealized gains (losses) on investments					(114,135	)					185,445

Net increase in net assets resulting from operations					308,258						1,033,121


Distributions to shareholders from
Net investment income					(107,298	)					(530,742	)
Net realized gains					0						(242,972	)

Total distributions to shareholders					(107,298	)					(773,714	)


Capital share transactions		Shares						Shares
Proceeds from shares sold		34,628			361,139			62,870			644,431
Payment for shares redeemed		(20,482	)		(213,440	)		(257,285	)		(2,626,887	)

Net increase (decrease) in net assets resulting from capital share transactions					147,699						(1,982,456	)

Total increase (decrease) in net assets					348,659						(1,723,049	)


Net assets
Beginning of period					15,224,860						16,947,909

End of period				$	15,573,519					$	15,224,860

Undistributed net investment income				$	13,224					$	16,235

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


10		Wells Fargo Managed Account CoreBuilder Shares – Series G		Financial Highlights

(For a share outstanding throughout each period)


	Six Months Ended June 30, 2012 (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012 (Unaudited)			2011			2010			2009			2008¹
Net asset value, beginning of period		$10.35			$10.18			$10.16			$10.15			$10.00
Net investment income		0.07			0.26			0.18			0.31			0.25
Net realized and unrealized gains (losses) on investments		0.14			0.41			0.47			0.46			0.28

Total from investment operations		0.21			0.67			0.65			0.77			0.53
Distributions to shareholders from
Net investment income		(0.07	)		(0.34	)		(0.43	)		(0.51	)		(0.36	)
Net realized gains		0.00			(0.16	)		(0.20	)		(0.25	)		(0.02	)

Total distributions to shareholders		(0.07	)		(0.50	)		(0.63	)		(0.76	)		(0.38	)
Net asset value, end of period	$	10.49		$	10.35		$	10.18		$	10.16		$	10.15
Total return²		2.08	%		6.80	%		6.53	%		7.62	%		5.41	%
Ratios to average net assets (annualized)
Net expenses³		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income		1.38	%		2.60	%		1.74	%		2.59	%		3.48	%
Supplemental data
Portfolio turnover rate		367	%		527	%		776	%		736	%		495	%
Net assets, end of period (000’s omitted)		$15,574			$15,225			$16,948			$17,043			$10,196

1.	For the period from April 14, 2008 (commencement of operations) to December 31, 2008.

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

The Adviser has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment-related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent, interest, taxes, leverage expenses and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term.

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


Notes to Financial Statements (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			11

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on Wells Fargo Managed Account CoreBuilder Shares - Series G (the “Fund”) which is a diversified series of the Trust.

The Fund is a special purpose government securities fund that is used in combination with selected individual securities to effectively model institutional-level investment strategies. As an investment option within the separately managed accounts advised or sub-advised by Wells Fargo Funds Management, LLC, the Fund enables certain separately managed account investors to achieve greater diversification than small managed accounts might otherwise achieve.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles 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

Fixed income securities with original maturities exceeding 60 days are valued based on evaluated prices received from an independent pricing service approved by the Board of Trustees which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the pricing service or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality with original maturities of 60 days or less generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Investments in open-end mutual funds and non-registered investment companies are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees. The 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 in determining the fair value of portfolio securities, unless the responsibility 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 considers for ratification any valuation actions taken by the Valuation Committee or the Management Valuation Team.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology 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 input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker 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 adviser and/or sub-adviser. 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.

When-issued transactions

The Fund may purchase securities on a forward commitment or ‘when-issued’ basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund


12		Wells Fargo Managed Account CoreBuilder Shares – Series G		Notes to Financial Statements (Unaudited)

begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Futures contracts

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

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

Mortgage dollar roll transactions

The Fund may engage in mortgage dollar roll transactions with respect to mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are reported on the basis of identified cost of securities delivered.

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

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with income tax regulations, which may differ from generally accepted accounting principles.

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.


Notes to Financial Statements (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			13

any losses incurred are required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than be considered all short-term as under previous law. In addition, the Fund may elect to defer any portion of a post-October capital loss or qualified late-year ordinary loss to the first day of the following taxable year. A post-October capital loss is the greatest of the net capital loss, net short-term capital loss or net long-term capital loss for the portion of the taxable year after October 31. A qualified late-year ordinary loss is the net loss comprised of (a) net gain or loss from the sale or other disposition of certain capital assets for the portion of the taxable year after October 31, and (b) other ordinary income or loss for the portion of the taxable year after December 31.

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 significant 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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of June 30, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Agency securities	$	0	$	15,598,421	$	0	$	15,598,421
Non-agency mortgage-backed securities		0		795,496		0		795,496
Short-term investments
Investment companies		8,665,652		0		0		8,665,652
U.S. Treasury securities		49,990		0		0		49,990
	$	8,715,642	$	16,393,917	$	0	$	25,109,559

Further details on the major security types listed above can be found in the Portfolio of Investments.

As of June 30, 2012, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments

Quoted Prices

(Level 1)

Significant Other
Observable Inputs

(Level 2)

Significant

Unobservable Inputs

(Level 3)

Total

Futures contracts+

3,742

+	Futures contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended June 30, 2012, the Fund did not have any transfers into/out of Level 1 and Level 2.


14		Wells Fargo Managed Account CoreBuilder Shares – Series G		Notes to Financial Statements (Unaudited)

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the sub-adviser, who is responsible for day-to-day portfolio management of the Fund. Funds Management does not receive a fee from the Fund but is entitled to receive fees from the sponsors of the wrap-fee programs. Out of these fees, Fund Management pays Wells Capital Management Incorporated, an affiliate of Funds Management, for its services as the sub-adviser to the Fund.

Generally, no ordinary operating fees or expenses are charged to the Fund. Funds Management has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment-related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent, interest, taxes, leverage expenses and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2012 were as follows:


Purchases at Cost				Sales Proceeds
U.S. Government		Non-U.S. Government		U.S. Government		Non-U.S. Government
$	59,225,276	$	396,670	$	58,672,792	$	475,783

6. DERIVATIVE TRANSACTIONS

During the six months ended June 30, 2012, the Fund entered into futures contracts to speculate on interest rates.

At June 30, 2012, the Fund had long and short futures contracts outstanding as follows:


Expiration Date	Contracts	Type	Contract Value at June 30, 2012		Unrealized Gains (Losses)
September 2012	11 Short	2-Year U.S. Treasury Notes	$	2,422,063	$	(21	)
September 2012	9 Short	5-Year U.S. Treasury Notes		1,115,719		(291	)
September 2012	5 Long	10-Year U.S. Treasury Notes		666,875		4,054

The Fund had an average notional amount of $956,370 and $4,041,453 in long and short futures contracts, respectively, during the six months ended June 30, 2012.

On June 30, 2012, the cumulative unrealized gains on futures contracts in the amount of $3,742 is reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains(losses) on futures contracts are reflected in the Statement of Operations.

7. CONCENTRATION OF OWNERSHIP

From time to time, the Fund may have a concentration of one or more of its shareholders that hold a significant percentage of the Fund’s shares outstanding.


Notes to Financial Statements (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			15

Investment and/or voting activities of these shareholders with respect to their holdings in the Fund shares could have a material impact on the Fund.

At June 30, 2012, the following shareholders held 73.77% of the outstanding shares of the Fund:


	% of Ownership
Wells Capital Management Incorporated		67.33	%
Citigroup Global Markets Incorporated		6.44	%

8. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and directors are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

9. NEW ACCOUNTING PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210 Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.


16		Wells Fargo Managed Account CoreBuilder Shares – Series G		Other Information (Unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at wellsfargoadvantagefunds.com, or visiting the SEC Web site 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 without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available without charge by visiting the SEC Web site at 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 Managed Account CoreBuilder Shares – Series G			17

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 138 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 Information¹. All of the Trustees are also Members of the Audit and Governance Committees of each Trust in the Fund Complex. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees


Name and Year of Birth	Position Held and Length of Service*	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	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. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, 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
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 40 portfolios as of 12/31/11); 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 Corporate Governance Research Program 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
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	President and CEO 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


18		Wells Fargo Managed Account CoreBuilder Shares – Series G		Other Information (Unaudited)


Name and Year of Birth	Position Held and Length of Service*	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (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 and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

*	Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

Officers


Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Senior Counsel of Wells Fargo Bank, N.A. since 1996.
Nancy Wiser (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma (Born 1974)	Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.

1.	The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.


Other Information (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			19

BOARD CONSIDERATION OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:

Under Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”), all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), must determine whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in person meeting held on March 29-30, 2012 (the “Meeting”), the Board reviewed and re-approved: (i) an investment advisory agreement with Wells Fargo Funds Management, LLC (“Funds Management”) for Wells Fargo Managed Account CoreBuilder Shares (SM) - Series G (the “Fund”) and (ii) an investment sub-advisory agreement with Wells Capital Management Incorporated (“Wells Capital Management”) for the Fund. The investment advisory agreement with Funds Management and the investment sub-advisory agreement with Wells Capital Management 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 Wells Capital Management and the continuation of the Advisory Agreements. Prior to the Meeting, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. The Board also met throughout the year and received information that was useful to them in considering the continuation of the Advisory Agreements. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately from Funds Management.

In providing information to the Board, Funds Management and Wells Capital Management were guided by a detailed set of requests submitted by the Independent Trustees’ independent legal counsel on their behalf at the start of the Board’s annual contract renewal process earlier in 2012. In approving the Advisory Agreements, the Board did not identify any particular information or consideration that was all-important or controlling, and each Trustee likely attributed different weights to various factors.

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 Wells Capital Management under the Advisory Agreements. The Board also received and considered, among other things, information about the background and experience of senior management of Funds Management, and the qualifications, backgrounds, tenures and responsibilities of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and Wells Capital Management, based on their respective financial condition, resources, reputation and other attributes, to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and Wells Capital Management. In addition, the Board took into account the administrative services provided to the Fund by Funds Management and its affiliates.

The Board’s decision to approve the continuation of the Advisory Agreements was based on a comprehensive evaluation of information provided to it. The Board evaluated information provided to it both in terms of the funds generally and with respect to the Fund, specifically as it considered appropriate.

In considering these matters, 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 Wells Capital Management about various topics, including Funds Management’s oversight of service providers. The above factors, together with those referenced below, are some of the most important, but not necessarily all, factors considered by the Board in concluding that the nature, extent and quality of the investment advisory services provided to the Fund by Funds Management and Wells Capital Management supported the re-approval of the Advisory Agreements. Although the Board considered the continuation of the Advisory Agreements for the Fund as part of the larger process of considering the continuation of the advisory agreements for all of the funds in the complex, its decision to continue the Advisory Agreements for the Fund was ultimately made on a fund by fund basis.


20		Wells Fargo Managed Account CoreBuilder Shares – Series G		Other Information (Unaudited)

Fund performance and expenses

The Board received and considered information regarding the “zero fee and expense” structure of the Fund. Specifically, the Board noted that the Fund’s gross operating expense ratio and each of its various components, including advisory fees, administration fees, custody fees, Rule 12b-1 fees, and other fees, were zero. The Board also noted Funds Management’s representations that the Fund is a special purpose mutual fund for use exclusively within Funds Management’s separately managed account (“SMA”) advisory business and, as such, Funds Management would assume and pay or reimburse all of the ordinary operating expenses of the Fund under an Expense Assumption Agreement but excluding portfolio transaction or other investment related costs, fees payable for services provided by the Fund’s securities lending agent, interest, taxes, leverage expenses, and other expenses not incurred in the ordinary cost of the Fund’s business. The Board further noted that Funds Management is paid a negotiated fee by each SMA sponsor and that the fee level would be identical for all sponsors of SMAs that invest in the Fund.

In light of this unique fee and distribution structure, the Board does not conduct a performance and fee review relative to a peer group or universe. The Board concluded that the fee and distribution structure of the Fund supported the re-approval of the Advisory Agreements for the Fund.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered that the contractual investment advisory fee rate payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rate”) was zero, and also reviewed and considered that the Fund’s other fees would normally be zero, because of Funds Management’s commitment to assume and pay or reimburse all of the ordinary operating expenses of the Fund under an Expense Assumption Agreement. The Board also reviewed and considered the contractual investment sub-advisory fee rate payable by Funds Management to Wells Capital Management for investment sub-advisory services (the “Sub-Advisory Agreement Rate”), and that such fees are paid from the fees Funds Management receives from SMA sponsors and not by the Fund.

The Board noted that the Advisory Agreement Rate for the Fund was consistent with the zero fee structure, and was reasonable in light of the services covered by the Advisory Agreements. The Board also reviewed and considered the Sub-Advisory Agreement Rate and concluded that the Sub-Advisory Agreement Rate was reasonable in light of the services covered by the sub-advisory agreement.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and Wells Capital Management to other types of clients. In this regard, the Board received information about differences between the services, and the compliance, reporting, and other legal burdens and risks of providing investment advice to mutual funds and those associated with providing advice to non-mutual fund clients such as collective funds or institutional separate accounts.

Profitability

The Board received and considered a profitability analysis of Funds Management and its affiliates, but did not consider separate profitability information with respect to the Fund in light of its unique fee and distribution structure.

Economies of scale

In light of the unique fee and distribution structure of the Fund, the Board did not conduct an analysis of economies of scale in the context of reviewing the Fund’s Advisory Agreements.

Other benefits to Funds Management and Wells Capital Management

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including Wells Capital Management, as a result of their relationship with the Fund. Ancillary benefits could include, among others, benefits directly attributable to the relationship of Funds Management and Wells Capital Management with the Fund and benefits potentially derived from an increase in Funds Management’s and Wells Capital Management’s business as a result of their relationship with the Fund (such as the ability to market to shareholders other financial products offered by Funds Management and its affiliates, including Wells Capital Management). The Board noted that Funds Management receives payments from the SMA sponsors and that it had agreed to assume and pay or reimburse certain operating expenses.

The Board also reviewed information about whether and to what extent soft dollar credits are sought and how any such credits are utilized and any benefits that may be realized by using an affiliated broker.


Other Information (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series G			21

Other factors and broader review

The Board also considered the markets for distribution of the Fund’s shares, including the channels through which the Fund’s shares are offered and sold. The Board noted that the Fund is part of one of the few fund families that have both direct-to-fund and intermediary distribution channels. As discussed above, the Board reviews detailed materials received from Funds Management and Wells Capital Management annually as part of the re-approval process under Section 15 of the 1940 Act and also reviews and assesses information about the quality of the services that the Fund receives throughout the year. In this regard, the Board has reviewed reports of Funds Management at each of its quarterly meetings, which include, among other things, portfolio reviews and performance reports. In addition, the Board confers with portfolio managers at various times throughout the year.

Conclusion

After considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for an additional one-year period.


22		Wells Fargo Managed Account CoreBuilder Shares – Series G		List of Abbreviations

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

ACB	— Agricultural Credit Bank

ADR	— American Depository Receipt

ADS	— American Depository Shares

AGC-ICC

— Assured Guaranty Corporation - Insured Custody Certificates

AGM	— Assured Guaranty Municipal

AMBAC

— American Municipal Bond Assurance Corporation

AMT	— Alternative Minimum Tax

AUD	— Australian Dollar

BAN	— Bond Anticipation Notes

BHAC	— Berkshire Hathaway Assurance Corporation

BRL	— Brazil Real

CAB	— Capital Appreciation Bond

CAD	— Canadian Dollar

CCAB	— Convertible Capital Appreciation Bond

CDA	— Community Development Authority

CDO	— Collateralized Debt Obligation

CHF	— Swiss Franc

COP	— Certificate of Participation

CR	— Custody Receipts

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

FFCB	— Federal Farm Credit Bank

FGIC	— Financial Guaranty Insurance Corporation

FGLMC

— Federal Government Loan Mortgage Company

FHA	— Federal Housing Authority

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 Depository 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

HUF	— Hungarian Forint

IBC	— Insured Bond Certificate

IDA	— Industrial Development Authority

IDAG	— Industrial Development Agency

IDR	— Industrial Development Revenue

IEP	— Irish Pound

JPY	— Japanese Yen

KRW	— Republic of Korea Won

LIBOR

— London Interbank Offered Rate

LIQ	— Liquidity Agreement

LLC	— Limited Liability Company

LLP	— Limited Liability Partnership

LOC	— Letter of Credit

LP	— Limited Partnership

MBIA	— Municipal Bond Insurance Association

MFHR	— Multi-Family Housing Revenue

MSTR	— Municipal Securities Trust Receipts

MTN	— Medium Term Note

MUD	— Municipal Utility District

MXN	— Mexican Peso

MYR	— Malaysian Ringgit

NATL-RE

— National Public Finance Guarantee Corporation

NOK	— Norwegian Krone

NZD	— New Zealand Dollar

PCFA	— Pollution Control Finance Authority

PCR	— Pollution Control Revenue

PFA	— Public Finance Authority

PFFA	— Public Facilities Financing Authority

PFOTER

— Puttable Floating Option Tax-Exempt Receipts

plc	— Public Limited Company

PLN	— Polish Zloty

PUTTER

— Puttable Tax-Exempt Receipts

R&D	— Research & Development

RDA	— Redevelopment Authority

RDFA	— Redevelopment Finance Authority

REIT	— Real Estate Investment Trust

ROC	— Reset Option Certificates

SAVRS

— Select Auction Variable Rate Securities

SBA	— Small Business Authority

SEK	— Swedish Krona

SFHR	— Single Family Housing Revenue

SFMR	— Single Family Mortgage Revenue

SGD	— Singapore Dollar

SKK	— Slovakian Koruna

SPA	— Standby Purchase Agreement

SPDR	— Standard & Poor’s Depositary Receipts

STRIPS

— Separate Trading of Registered Interest and Principal Securities

TAN	— Tax Anticipation Notes

TBA	— To Be Announced

TIPS	— Treasury Inflation-Protected Securities

TRAN	— Tax Revenue Anticipation Notes

TCR	— Transferable Custody Receipts

TRY	— Turkish Lira

TTFA	— Transportation Trust Fund Authority

TVA	— Tennessee Valley Authority

XLCA	— XL Capital Assurance

ZAR	— South African Rand

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LOGO

FOR MORE INFORMATION

More information about the Fund is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Management

Attn: Managed Account Services

P.O. Box 1450

Milwaukee, WI 53201

E-mail: MAS@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

Managed Account Services: 1-800-368-0627

Sales Support Inquiries: 1-800-368-1683

This report and the financial statements contained herein are submitted for the general information of the shareholders of Wells Fargo Managed Account CoreBuilder Shares. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. For a current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-368-0627. Please consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. This and other information about Wells Fargo Managed Account CoreBuilder Shares can be found in the current prospectus. Read the prospectus carefully before you invest or send money.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Managed Account CoreBuilder Shares. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Wells Fargo Managed Account CoreBuilder Shares. The Wells Fargo Managed Account CoreBuilder Shares are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED ¡ NO BANK GUARANTEE ¡ MAY LOSE VALUE

210660 08-12

SCBG/SAR129 06-12

Wells Fargo Managed Account

CoreBuilder Shares^SM – Series M

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Semi-Annual Report

June 30, 2012

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Contents


Performance Highlights			2

Fund Expenses			4

Portfolio of Investments			5

Financial Statements
Statement of Assets and Liabilities			13
Statement of Operations			14
Statements of Changes in Net Assets			15
Financial Highlights			16

Notes to Financial Statements			17

Other Information			22

List of Abbreviations			28

Notice to Shareholders

Effective September 1, 2012, the Fund’s dollar-weighted average effective maturity, under normal circumstances, is expected to change from the current range of between 5 to 20 years to between 3 and 20 years.

Please contact your investment professional or call us directly at 1-800-368-0627 if you have any questions on this Notice to Shareholders.

NOT FDIC INSURED ¡ NO BANK GUARANTEE ¡ MAY LOSE VALUE


2		Wells Fargo Managed Account CoreBuilder Shares – Series M		Performance Highlights (Unaudited)

INVESTMENT OBJECTIVE

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

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Lyle J. Fitterer, CFA, CPA

Robert J. Miller

FUND INCEPTION

April 14, 2008


CREDIT QUALITY¹ (AS OF JUNE 30, 2012)


EFFECTIVE MATURITY DISTRIBUTION² (AS OF JUNE 30, 2012)

The ratings indicated are from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit Quality Ratings: Credit quality ratings apply to underlying holdings of the Fund and not the Fund itself. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG-1/VMIG-1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized and if rated by one of the agencies that rating was utilized. Credit quality is subject to change and is calculated based on the total investments of the Fund. We generally define higher quality bonds as bonds that have a rating of BBB/Baa and above and lower quality (investment-grade) bonds as bonds with a rating below BBB/Baa.

2.	Effective maturity distribution is subject to change and is calculated based on the total investments of the Fund. It is based on the weighted average maturity of each security.


Performance Highlights (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			3

AVERAGE ANNUAL TOTAL RETURN (%) (AS OF JUNE 30, 2012)


	Inception Date		6 Months*		1 Year		Life of Fund
Wells Fargo Managed Account CoreBuilder Shares – Series M		04/14/2008		6.95		13.32		10.32
Barclays Municipal Bond Index³				3.66		9.90		6.02

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

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the alternative minimum tax (AMT). Any capital gains distributions may be taxable.

3.	The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.


4		Wells Fargo Managed Account CoreBuilder Shares – Series M		Fund Expenses (Unaudited)

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, 2012 to June 30, 2012.

Actual Expenses

Hypothetical Example for Comparison Purposes


	Beginning Account Value 01-01-2012		Ending Account Value 06-30-2012		Expenses Paid During the Period¹			Net Annual Expense Ratio
Actual	$	1,000.00	$	1,069.48	$	0.00	*		0.00	%*
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.86	$	0.00	*		0.00	%*

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


Portfolio of Investments—June 30, 2012 (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			5


Security Name	Interest Rate			Maturity Date		Principal		Value


Municipal Obligations: 94.35%

Alaska: 1.40%
Alaska Railroad Corporation (Miscellaneous Revenue, NATL-RE FGIC Insured) §		5.00	%		08/01/2021	$	500,000	$	554,060


Arizona: 4.53%
Arizona Health Facilities Authority Banner Health Series B (Health Revenue) §±		1.12			01/01/2037		1,500,000		1,083,510
Phoenix AZ IDA Education Great Hearts Academies-Veritas (Miscellaneous Revenue) §		6.00			07/01/2032		250,000		262,038
Phoenix AZ IDA Education Great Hearts Academies-Veritas (Miscellaneous Revenue) §		6.25			07/01/2032		345,000		363,934
Verrado AZ Community Facilities District # 1 (GO) §		4.85			07/15/2014		85,000		86,714

									1,796,196


California: 16.34%
Alameda CA Corridor Transportation Authority Sub Lien Series A (Transportation Revenue, AMBAC Insured) ¤		0.00			10/01/2018		400,000		313,084
California DWR (Water & Sewer Revenue) §		5.00			12/01/2023		500,000		608,435
California HFFA Community Development Project (Miscellaneous Revenue, California Mortgages Insured) §		6.25			02/01/2026		100,000		115,727
California Statewide Communities Sutter Health Series A (Health Revenue) §		6.00			08/15/2042		100,000		117,780
California Various Purposes (GO) §		6.00			04/01/2038		200,000		232,056
California Various Purposes Series A (Miscellaneous Revenue) §		6.25			04/01/2034		250,000		292,338
Compton CA Community College District (GO) ¤		0.00			08/01/2029		500,000		179,365
Corona-Norco CA Unified School District Convertible CAB Election of 2006 Series C (GO, AGM Insured) ¤		0.00			08/01/2039		130,000		120,670
Escondido CA Union High School District CAB Election of 2008 Series A (GO, Assured Guaranty Insured) ¤		0.00			08/01/2029		200,000		87,594
Gilroy CA Unified School District CAB Election of 2008 Series A (GO, Assured Guaranty Insured) ¤		0.00			08/01/2032		200,000		70,616
Hawthorne CA School District CAB Election of 1997 Series C (GO, NATL-RE Insured) ¤		0.00			11/01/2025		100,000		48,639
Inland Valley CA Development Agency Series C (Tax Revenue) §±		4.50			03/01/2041		250,000		265,200
M-S-R Energy Authority California Gas Series B (Utilities Revenue) §		6.13			11/01/2029		150,000		175,362
Northern California Gas Authority # 1 LIBOR (Utilities Revenue) §±		0.91			07/01/2017		165,000		151,397
Oakland CA Unified School District Alameda County Election of 2006 Series A (GO) §		6.50			08/01/2024		100,000		117,567
Palo Alto CA Improvement Bond Act 191 (Miscellaneous Revenue)		4.00			09/02/2020		240,000		253,354
Palo Alto CA Improvement Bond Act 191 (Miscellaneous Revenue)		4.25			09/02/2022		225,000		235,208
Palomar CA Community College CAB Election of 2006 Series B (GO) ¤		0.00			08/01/2032		570,000		206,443
Palomar CA Pomerado Health CAB Election of 2004 Series A (GO) ¤		0.00			08/01/2034		250,000		73,763
Peralta CA Community College District (GO) §		5.00			08/01/2024		450,000		527,022
Richmond CA Joint Powers Financing Authority Civic Center Project (Miscellaneous Revenue, Assured Guaranty Insured) §		5.88			08/01/2037		50,000		56,063
Sacramento County CA Sanitation District Financing Authority Regulation B (Water & Sewer Revenue, NATL-RE FGIC Insured) §±		0.84			12/01/2035		200,000		139,286
Sacramento County CA Water Financing Authority Water Agency Zones 40 & 41 Series B (Water & Sewer Revenue, NATL-RE, FGIC Insured) §±		0.86			06/01/2034		1,300,000		921,037
San Bernardino CA Community CAB Series D (GO) ¤		0.00			08/01/2032		700,000		253,925
San Buenaventura CA Community Memorial Health System (Health Revenue)		6.25			12/01/2020		150,000		172,307
San Diego County CA COP (GO, AMBAC Insured) ¤		0.00			07/01/2030		250,000		103,653
Stockton CA Unified School District (Miscellaneous Revenue, AMBAC Insured)		5.00			02/01/2016		100,000		108,596

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


6		Wells Fargo Managed Account CoreBuilder Shares – Series M		Portfolio of Investments—June 30, 2012 (Unaudited)


Security Name	Interest Rate			Maturity Date		Principal		Value


California (continued)
Stockton CA Unified School District CAB Election of 2008 Series D (GO, AGM Insured) ¤		0.00	%		08/01/2035	$	2,055,000	$	538,410

									6,484,897


Colorado: 1.31%
Colorado ECFA Charter School American Academy Project (Miscellaneous Revenue, Moral Obligation Insured) §		7.13			12/01/2033		200,000		241,606
Colorado ECFA Charter School Series A (Miscellaneous Revenue) §		6.25			11/01/2040		150,000		170,081
Public Authority for Colorado Energy Natural Gas Purchase Revenue Bonds (Utilities Revenue) §		5.75			11/15/2018		95,000		106,323

									518,010


District of Columbia: 0.26%
District of Columbia Cesar Chavez Public Charter School Project (Miscellaneous Revenue) §		6.50			11/15/2021		95,000		101,829


Florida: 6.50%
CityPlace FL Community Development District Series 2012 (Miscellaneous Revenue)		5.00			05/01/2022		500,000		562,835
CityPlace FL Community Development District Series 2012 (Miscellaneous Revenue) §		5.00			05/01/2026		250,000		274,875
Florida Gaming Division Seminole Tribe Settlement Series 2010-A (Miscellaneous Revenue) §144A		5.13			10/01/2017		150,000		157,163
Pinellas County FL Educational Facilities (Education Revenue)		4.00			10/01/2022		500,000		505,860
Pinellas County FL Health Facilities (Health Revenue, NATL-RE Insured) §±(a)(n)(m)		0.29			11/15/2023		750,000		653,060
Sunrise FL PFFA CAB Series B (Tax Revenue, NATL-RE Insured) ¤		0.00			10/01/2016		175,000		149,097
Tampa Hillsborough County FL Expressway Authority (Transportation Revenue, AMBAC Insured) §		5.00			07/01/2017		250,000		276,683

									2,579,573


Georgia: 1.88%
Atlanta GA Development Authority Tuff Yamacraw LLC Project Series A (IDR, AMBAC Insured)		5.00			01/01/2027		50,000		52,154
Georgia Private Colleges & Universities Authority Mercer University Project Series 2012 (Education Revenue)		4.00			10/01/2014		330,000		348,074
Municipal Gas Authority of Georgia Main Street Natural Gas Incorporated Project Series A (Utilities Revenue) §		5.00			03/15/2022		75,000		85,052
Municipal Gas Authority of Georgia Main Street Natural Gas Incorporated Project Series B (Utilities Revenue) §		5.00			03/15/2014		250,000		260,568

									745,848


Guam: 1.71%
Guam Government Business Privilege Series A (Tax Revenue) §		5.00			01/01/2031		250,000		272,290
Guam Government Hotel Occupancy (Tax Revenue) §		6.50			11/01/2040		200,000		228,578
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			07/01/2019		75,000		78,701
Guam Power Authority Series A (Utilities Revenue, AMBAC Insured) §		5.00			10/01/2018		100,000		100,022

									679,591

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


Portfolio of Investments—June 30, 2012 (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			7


Security Name	Interest Rate			Maturity Date		Principal		Value


Idaho: 1.60%
Boise-Kuna ID Irrigation District Arrowrock Hydroelectric Project (Utilities Revenue) §		7.38	%		06/01/2040	$	100,000	$	116,547
Idaho Housing & Finance Association Liberty Charter School Series A (Miscellaneous Revenue) §		6.00			06/01/2038		250,000		257,888
Idaho Water Resource Board (Miscellaneous Revenue) §		5.00			09/01/2032		250,000		260,928

									635,363


Illinois: 6.01%
Illinois Finance Authority Charter School Refunding & Improvement Uno Charter (Miscellaneous Revenue) §		7.13			10/01/2041		200,000		221,818
Illinois Finance Authority Medical District Commission Project A (Health Revenue, CIFC Insured) §		4.13			09/01/2018		80,000		81,883
Illinois First Series (GO, NATL-RE Insured) §		5.38			07/01/2018		100,000		100,028
Illinois Series 2010 (GO, AGM Insured) §		5.00			01/01/2023		300,000		327,615
Illinois Series A (GO)		5.00			06/01/2019		175,000		197,286
Illinois Series A (GO, AMBAC Insured) §		5.00			11/01/2025		100,000		104,811
Illinois Series A (GO, NATL-RE FGIC-TCRS Insured) §		5.25			10/01/2015		100,000		105,249
Illinois Toll Highway Authority (Transportation Revenue, AGM Insured) §		5.00			01/01/2024		350,000		394,065
Kane County IL School District # 131 (GO, NATL-RE FGIC Insured) ¤		0.00			06/01/2018		410,000		347,996
Lake County IL School District # 38 Big Hollow CAB (GO, AMBAC Insured) ¤		0.00			02/01/2019		75,000		55,602
McHenry & Kane Counties IL CAB (GO, NATL-RE FGIC Insured) ¤		0.00			01/01/2016		140,000		127,393
Metropolitan Pier & Exposition Authority Illinois State Tax CAB Refunding McCormick Project (Tax Revenue, NATL-RE FGIC Insured) ¤		0.00			06/15/2029		100,000		44,953
Metropolitan Pier & Exposition Authority Illinois State Tax CAB Refunding McCormick Project Series B (Tax Revenue, AGM Insured) ¤		0.00			06/15/2027		75,000		37,981
Waukegan IL CAB Series A (GO, NATL-RE FGIC Insured) §¤		0.00			12/30/2017		200,000		154,868
Will County IL School District # 114 CAB Series C (GO, NATL-RE FGIC Insured) ¤		0.00			12/01/2017		100,000		81,027

									2,382,575


Indiana: 0.70%
Indiana Ascension Health Services Series B-3 (Health Revenue) §±		1.51			11/15/2031		150,000		151,163
Jasper County IN PCR Northern Series B (IDR, NATL-RE Insured)		5.60			11/01/2016		110,000		125,007

									276,170


Kansas: 0.08%
Wyandotte County KS United Government Referendum Sales Tax Second Lien Area B (Tax Revenue) §		5.00			12/01/2020		30,000		31,777


Kentucky: 2.26%
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, NATL-RE Insured) ¤		0.00			10/01/2020		200,000		143,756
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, NATL-RE Insured) ¤		0.00			10/01/2023		150,000		90,579
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, NATL-RE Insured) ¤		0.00			10/01/2025		1,000,000		537,280
Kentucky EDFA Norton Healthcare Incorporated Series C (Health Revenue, NATL-RE Insured) §±		5.95			10/01/2017		120,000		126,643

									898,258

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


8		Wells Fargo Managed Account CoreBuilder Shares – Series M		Portfolio of Investments—June 30, 2012 (Unaudited)


Security Name	Interest Rate			Maturity Date		Principal		Value


Louisiana: 3.00%
New Orleans LA (Water & Sewer Revenue, FGIC Insured) §		5.00	%		12/01/2013	$	635,000	$	642,499
New Orleans LA Aviation Board Gulf Opportunity Zone Consolidated Rental Car Series A (Airport Revenue) §		6.50			01/01/2040		500,000		549,065

									1,191,564


Maryland: 0.34%
Maryland Health & Higher Education Washington Country Hospital Project (Health Revenue) §		5.00			01/01/2019		125,000		134,315


Massachusetts: 2.00%
Massachusetts Development Finance Agency Sabis International Charter Series A (Miscellaneous Revenue) §		8.00			04/15/2039		100,000		122,595
Massachusetts Municipal Wholesale Electric Company Nuclear Mix # 1 Series 1 (Utilities Revenue, NATL-RE Insured) §±(a)(n)(m)		0.23			07/01/2014		225,000		216,286
Massachusetts Municipal Wholesale Electric Company Nuclear Mix # 3 Series 1 (Utilities Revenue, NATL-RE Insured) §±(a)(n)(m)		0.23			07/01/2018		500,000		455,467

									794,348


Michigan: 7.13%
Comstock MI Public Schools CAB (GO, AMBAC Insured) ¤		0.00			05/01/2014		200,000		193,742
Detroit MI Sewage Disposal System Senior Lien Series A (Water & Sewer Revenue, Assured Guaranty Insured) §±		5.25			07/01/2022		250,000		268,800
Detroit MI Water and Sewerage Department Sewage Disposal System Project Series 2012 (Water & Sewer Revenue) §		5.25			07/01/2027		500,000		522,560
Detroit MI Water Supply System Second Lien Series B (Water & Sewer Revenue, AGM Insured) §		7.00			07/01/2036		250,000		299,820
Detroit MI Water Supply System Second Senior Lien Series A (Water & Sewer Revenue, NATL-RE Insured) ±		5.25			07/01/2015		355,000		389,474
Michigan Finance Authority Limited Obligation Public Academy—Old Redford Series A (Miscellaneous Revenue) §		5.25			12/01/2020		100,000		101,904
Michigan Finance Authority Public School Academy University Learning (Miscellaneous Revenue) §		7.50			11/01/2040		100,000		115,010
Michigan Finance Authority Unemployment Obligation Assessment Series B (Miscellaneous Revenue) §		5.00			07/01/2022		500,000		570,865
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, AMBAC Insured)		5.00			05/01/2013		100,000		102,057
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, AMBAC Insured)		5.00			11/01/2015		50,000		53,137
Michigan Municipal Bond Authority Local Government Loan Program Series G (Miscellaneous Revenue, AMBAC Insured) ¤		0.00			05/01/2016		50,000		44,621
Michigan Public ECFA Bradford Academy Project (Miscellaneous Revenue) §		8.00			09/01/2021		185,000		167,801

									2,829,791


Nevada: 1.17%
Clark County NV School District Series B (GO, AGM Insured) §		5.00			06/15/2017		85,000		92,285
Henderson NV Catholic Healthcare West Project Series 2004A (Health Revenue) §		5.63			07/01/2024		350,000		371,690

									463,975

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


Portfolio of Investments—June 30, 2012 (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			9


Security Name	Interest Rate			Maturity Date		Principal		Value


New Jersey: 3.94%
New Jersey EDA Motor Vehicle Surcharges Series A (Miscellaneous Revenue, NATL-RE Insured)		5.25	%		07/01/2026	$	250,000	$	296,735
New Jersey EDA Police Barracks Project (Miscellaneous Revenue)		5.00			06/15/2020		285,000		323,067
New Jersey Higher Education Assistance Authority Series A (Education Revenue) §		5.63			06/01/2030		100,000		111,013
New Jersey Transportation Trust Fund Authority Series B (Miscellaneous Revenue) §		5.50			06/15/2031		250,000		289,840
North Hudson NJ Sewerage Authority Series 2012A (Miscellaneous Revenue) §		5.00			06/01/2042		500,000		541,710

									1,562,365


New York: 2.65%
Nassau County NY Series F (GO) §		5.00			10/01/2020		150,000		176,369
New York Dormitory Authority Mount Sinai School Medical Series A (Education Revenue, NATL-RE Insured) §		5.15			07/01/2024		200,000		231,368
Seneca County NY IDAG Seneca Meadows Incorporated Project (IDR) §±144A		6.63			10/01/2035		50,000		50,626
Suffolk NY Tobacco Asset Securitization Corporation (Tobacco Revenue) §		5.00			06/01/2024		500,000		536,915
Yonkers NY IDAG Sarah Lawrence College Project Series A (Education Revenue) §		5.75			06/01/2024		50,000		56,927

									1,052,205


Ohio: 0.65%
Ohio Enterprise Bond Fund Toledo-Lucas County Port Authority GHF Properties LLC Project Series 2007-2A (IDR) §		5.50			12/01/2019		235,000		257,960


Oregon: 0.48%
Oregon Facilities Authority Southern Oregon University Project Series 2012 (Education Revenue) §		4.00			07/01/2023		185,000		191,643


Pennsylvania: 8.84%
Allegheny County PA Airport AMT Pittsburgh International Airport Series A (Airport Revenue, AGM Insured)		5.00			01/01/2017		250,000		280,898
Allegheny County PA Hospital Development Authority University of Pittsburg Medical Center Series A-1 (Health Revenue) §±		1.13			02/01/2037		450,000		369,855
Berks County PA Municipal Authority Reading Hospital Medical Center Project Series B (Health Revenue) §±		1.68			11/01/2039		750,000		749,280
Chester County PA IDA Avon Grove Charter School Project Series A (Miscellaneous Revenue) §		6.25			12/15/2027		325,000		335,891
Delaware County PA IDA Resource Recovery Facility Series A (Resource Recovery Revenue) §		6.20			07/01/2019		100,000		100,040
Harrisburg PA Authority Resource Recovery Facility Series D-1 (Resource Recovery Revenue, AGM Insured) §±		5.25			12/01/2033		100,000		100,998
McKeesport PA Area School District CAB (GO, NATL-RE State Aid Withholding Insured) ¤		0.00			10/01/2025		290,000		155,588
Philadelphia PA Authority for Industrial Development Mariana Bracetti Academy (Miscellaneous Revenue) §		6.25			12/15/2021		310,000		335,519
Philadelphia PA Authority for Industrial Discovery Charter School Project (Miscellaneous Revenue) §		4.00			04/01/2017		310,000		311,454
Philadelphia PA Authority for Industrial Discovery Charter School Project (Miscellaneous Revenue) §		5.00			04/01/2022		450,000		466,497
Philadelphia PA Authority for Industrial Discovery Charter School Project (Miscellaneous Revenue) §		6.00			12/15/2027		285,000		300,153

									3,506,173

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


10		Wells Fargo Managed Account CoreBuilder Shares – Series M		Portfolio of Investments—June 30, 2012 (Unaudited)


Security Name	Interest Rate			Maturity Date		Principal		Value


Puerto Rico: 5.45%
Puerto Rico Electric Power Authority Series UU (Utilities Revenue, AGM Insured) §±		0.83	%		07/01/2029	$	125,000	$	88,583
Puerto Rico Electric Power Authority Series UU (Utilities Revenue) §±		1.01			07/01/2031		2,500,000		1,707,325
Puerto Rico Sales Tax Financing Corporation First Sub-Series A (Tax Revenue) §		6.38			08/01/2039		50,000		58,035
Puerto Rico Sales Tax Financing Corporation First Sub-Series A1 (Tax Revenue) ¤		0.00			08/01/2023		500,000		309,890

									2,163,833


Rhode Island: 1.52%
Rhode Island Economic Development Corporation (Airport Revenue, AGM Insured) §		5.00			07/01/2019		575,000		601,680


South Carolina: 0.93%
Allendale County SC School District Energy Savings Special Obligation (Miscellaneous Revenue, State Aid Withholding Insured) §		8.50			12/01/2018		100,000		107,914
Newberry SC Newberry County School District Project (Miscellaneous Revenue) §		5.25			12/01/2017		240,000		262,870

									370,784


South Dakota: 0.63%
Education Loans Incorporated South Dakota Student Loans (Education Revenue, Guaranteed Student Loans Insured) §		5.45			06/01/2020		250,000		247,930


Tennessee: 1.06%
Metropolitan Nashville Tennessee Airport Authority Refunding Aero Nashville LLC Project Series 2010 (Airport Revenue) §		5.20			07/01/2026		95,000		93,241
Tennessee Energy Acquisition Corporation Gas Project Series A (Utilities Revenue)		5.25			09/01/2018		100,000		112,167
Tennessee Energy Acquisition Corporation Gas Project Series C (Utilities Revenue)		5.00			02/01/2019		100,000		107,249
Tennessee Energy Acquisition Corporation Gas Project Series C (Utilities Revenue)		5.00			02/01/2020		100,000		107,334

									419,991


Texas: 6.11%
Dallas Fort Worth TX International Airport Facilities Improvement Corporation Series A (Airport Revenue) §		5.00			11/01/2022		350,000		385,224
Houston TX Airport Systems AMT Sub Series C (Airport Revenue, XLCA Insured) §±(a)(n)(m)		0.49			07/01/2032		100,000		77,075
Houston TX Higher Education Finance Corporation Cosmos Foundation Series 2012A (Miscellaneous Revenue) §		4.00			02/15/2022		250,000		250,983
La Vernia TX Higher Education Finance Corporation Series A (Miscellaneous Revenue) §		6.25			02/15/2017		250,000		275,198
North Texas Tollway Authority First Tier (Transportation Revenue) §		5.00			01/01/2026		350,000		388,605
SA Energy Acquisition Public Facility Corporation Texas Gas Supply (Utilities Revenue)		5.50			08/01/2019		300,000		337,023
Texas Municipal Gas Acquisition & Supply Corporation Series A (Utilities Revenue) §±		1.01			09/15/2017		180,000		175,541
Texas Municipal Gas Acquisition & Supply Corporation Series D (Utilities Revenue) §		6.25			12/15/2026		350,000		410,953
Texas Private Activity Bond LBJ Infrastructure Group LLC Managed Lanes Project Series 2010 (Transportation Revenue) §		7.50			06/30/2032		50,000		62,156

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


Portfolio of Investments—June 30, 2012 (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			11


Security Name	Interest Rate			Maturity Date		Principal		Value


Texas (continued)
Texas Private Activity Bond LBJ Infrastructure Group LLC Managed Lanes Project Series 2010 (Transportation Revenue) §		7.50	%		06/30/2033	$	50,000	$	62,156

									2,424,914


Utah: 0.92%
Spanish Fork City UT American Leadership Academy (Miscellaneous Revenue) §144A		5.55			11/15/2021		185,000		189,383
Utah Charter School Finance Authority Paradigm High School Project (Miscellaneous Revenue) §		5.00			07/15/2015		170,000		174,187

									363,570


Vermont: 0.25%
Burlington VT Airport BAN (Miscellaneous Revenue) §		6.50			12/15/2012		100,000		100,045


Virgin Islands: 0.67%
Virgin Islands Public Finance Authority Series B (Tax Revenue) §		5.00			10/01/2025		200,000		212,918
Virgin Islands Public Finance Authority Sub Matching Loan Notes Series A (Miscellaneous Revenue) §		6.00			10/01/2039		50,000		54,241

									267,159


Virginia: 0.55%
Virginia Resources Authority Water and Sewer Capital Appreciation (Water & Sewer Revenue) §¤		0.00			11/01/2029		500,000		218,825


Wisconsin: 1.48%
Wisconsin HEFA Aurora Health Care Series A (Health Revenue) §		5.00			07/15/2028		350,000		380,489
Wisconsin Oneida Tribe of Indians (Tax Revenue) §144A		5.50			02/01/2021		185,000		208,489

									588,978


Total Municipal Obligations (Cost $35,774,789)									37,436,195


	Yield					Shares
Short-Term Investments: 5.84%

Investment Companies: 5.72%
Wells Fargo Advantage National Tax-Free Money Market Fund, Institutional Class (l)(u)		0.01					2,268,194		2,268,194


						Principal
U.S. Treasury Securities: 0.12%
U.S. Treasury Bill #(z)		0.09			09/27/2012		50,000		49,990


Total Short-Term Investments (Cost $2,318,182)									2,318,184


Total Investments in Securities
(Cost $38,092,971) *	100.19	%		39,754,379
Other Assets and Liabilities, Net	(0.19	)		(73,715	)

Total Net Assets	100.00	%	$	39,680,664

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


12		Wells Fargo Managed Account CoreBuilder Shares – Series M		Portfolio of Investments—June 30, 2012 (Unaudited)

§	These securities are subject to a demand feature which reduces the effective maturity.

±	Variable rate investment

¤	Security issued in zero coupon form with no periodic interest payments.

144A	Security that may be resold to “qualified institutional buyers” under Rule 144A or security offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(a)	Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(n)	Auction to set interest rate on security failed at period end due to insufficient investor interest; failed auction does not itself cause a default.

(m)	An auction-rate security whose interest rate resets at predetermined short-term intervals through a Dutch auction; rate shown represents the rate in effect at period-end.

(l)	Investment in an affiliate

(u)	Rate shown is 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. Rate represents yield to maturity at time of purchase.

*	Cost for federal income tax purposes is $38,092,729 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	1,761,693
Gross unrealized depreciation		(100,043	)

Net unrealized appreciation	$	1,661,650

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


Statement of Assets and Liabilities—June 30, 2012 (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			13




Assets
Investments
In unaffiliated securities, at value (see cost below)	$	37,486,185
In affiliated securities, at value (see cost below)		2,268,194

Total investments, at value (see cost below)		39,754,379
Receivable for investments sold		60,000
Receivable for Fund shares sold		456,626
Receivable for interest		358,182
Receivable for daily variation margin on open futures contracts		9,375

Total assets		40,638,562


Liabilities
Dividends payable		129,581
Payable for investments purchased		597,800
Payable for Fund shares redeemed		230,517

Total liabilities		957,898

Total net assets	$	39,680,664


NET ASSETS CONSIST OF
Paid-in capital	$	37,645,957
Undistributed net investment income		173
Accumulated net realized gains on investments		369,542
Net unrealized gains on investments		1,664,992

Total net assets	$	39,680,664


COMPUTATION OF NET ASSET VALUE PER SHARE¹
Net assets	$	39,680,664
Shares outstanding		3,465,668
Net asset value per share		$11.45

Investments in unaffiliated securities, at cost	$	35,824,777

Investments in affiliated securities, at cost	$	2,268,194

Total investments, at cost	$	38,092,971

1.	The Fund has an unlimited number of authorized shares.

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


14		Wells Fargo Managed Account CoreBuilder Shares – Series M		Statement of Operations—Six Months Ended June 30, 2012 (Unaudited)




Investment income
Interest	$	618,502
Income from affiliated securities		327

Total investment income		618,829


Expenses
Custody and accounting fees		3,859
Professional fees		6,434
Registration fees		1,201
Shareholder report expenses		5,446
Trustees’ fees and expenses		6,728
Other fees and expenses		1,359

Total expenses		25,027
Less: Fee waivers and/or expense reimbursements		(25,027	)

Net expenses		0

Net investment income		618,829


REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized gains on:
Unaffiliated securities		267,812
Futures transactions		58,639

Net realized gains on investments		326,451


Net change in unrealized gains (losses) on:
Unaffiliated securities		802,900
Futures transactions		14,697

Net change in unrealized gains (losses) on investments		817,597

Net realized and unrealized gains (losses) on investments		1,144,048

Net increase in net assets resulting from operations	$	1,762,877

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


Statements of Changes in Net Assets		Wells Fargo Managed Account CoreBuilder Shares – Series M			15


	Six Months Ended June 30, 2012 (Unaudited)						Year Ended December 31, 2011

Operations
Net investment income				$	618,829					$	612,795
Net realized gains on investments					326,451						88,959
Net change in unrealized gains (losses) on investments					817,597						805,175

Net increase in net assets resulting from operations					1,762,877						1,506,929


Distributions to shareholders from
Net investment income					(618,436	)					(612,677	)
Net realized gains					0						(65,768	)

Total distributions to shareholders					(618,436	)					(678,445	)


Capital share transactions		Shares						Shares
Proceeds from shares sold		1,810,516			20,488,223			1,112,457			11,794,938
Payment for shares redeemed		(103,659	)		(1,178,562	)		(127,766	)		(1,354,260	)

Net increase in net assets resulting from capital share transactions					19,309,661						10,440,678

Total increase in net assets					20,454,102						11,269,162


Net assets
Beginning of period					19,226,562						7,957,400

End of period				$	39,680,664					$	19,226,562

Undistributed (overdistributed) net investment income				$	173					$	(220	)

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


16		Wells Fargo Managed Account CoreBuilder Shares – Series M		Financial Highlights

(For a share outstanding throughout each period)


	Six Months Ended June 30, 2012 (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012 (Unaudited)			2011			2010			2009			2008¹
Net asset value, beginning of period	$	10.93		$	10.28		$	10.26		$	9.06		$	10.00
Net investment income		0.31			0.52			0.52			0.55			0.37
Net realized and unrealized gains (losses) on investments		0.52			0.70			0.14			1.70			(0.92	)

Total from investment operations		0.83			1.22			0.66			2.25			(0.55	)
Distributions to shareholders from
Net investment income		(0.31	)		(0.52	)		(0.52	)		(0.55	)		(0.37	)
Net realized gains		0.00			(0.05	)		(0.12	)		(0.50	)		(0.02	)

Total distributions to shareholders		(0.31	)		(0.57	)		(0.64	)		(1.05	)		(0.39	)
Net asset value, end of period	$	11.45		$	10.93		$	10.28		$	10.26		$	9.06
Total return²		6.95	%		12.18	%		6.53	%		25.50	%		(5.74	)%
Ratios to average net assets (annualized)
Net expenses³		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income		4.08	%		4.91	%		4.93	%		5.50	%		5.29	%
Supplemental data
Portfolio turnover rate		20	%		47	%		41	%		157	%		150	%
Net assets, end of period (000’s omitted)		$39,681			$19,227			$7,957			$5,257			$4,640

1.	For the period from April 14, 2008 (commencement of operations) to December 31, 2008.

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 Managed Account CoreBuilder Shares – Series M			17

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on Wells Fargo Managed Account CoreBuilder Shares – Series M (the “Fund”) which is a diversified series of the Trust.

The Fund is a special purpose municipal bond fund that is used in combination with selected individual securities to effectively model institutional-level investment strategies. As an investment option within the separately managed accounts advised or sub-advised by Wells Fargo Funds Management, LLC, the Fund enables certain separately managed account investors to achieve greater diversification than small managed accounts might otherwise achieve.

2. SIGNIFICANT ACCOUNTING POLICIES

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are fair valued at net asset value.

When-issued transactions


18		Wells Fargo Managed Account CoreBuilder Shares – Series M		Notes to Financial Statements (Unaudited)

begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Futures contracts

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are reported on the basis of identified cost of securities delivered.

Distributions to shareholders

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 and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than be considered all short-term as under previous law. In addition, the Fund may elect to defer any portion of a post-October capital loss or qualified late-year ordinary loss to the first day of the following taxable year. A post-October capital loss is the greatest of the net capital loss, net short-term capital loss or net long-term capital loss for the portion of the taxable year after October 31. A qualified late-year ordinary loss is the net loss comprised of (a) net gain or loss from the sale or other disposition of certain capital assets for the portion of the taxable year after October 31, and (b) other ordinary income or loss for the portion of the taxable year after December 31.


Notes to Financial Statements (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			19

3. FAIR VALUATION MEASUREMENTS

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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of June 30, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Municipal obligations	$	0	$	36,034,307	$	1,401,888	$	37,436,195
Short-term investments
U.S. Treasury securities		49,990		0		0		49,990
Investment companies		2,268,194		0		0		2,268,194
	$	2,318,184	$	36,034,307	$	1,401,888	$	39,754,379

Further details on the major security types listed above can be found in the Portfolio of Investments.

As of June 30, 2012, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments

Quoted Prices

(Level 1)

Significant Other
Observable Inputs

(Level 2)

Significant

Unobservable Inputs

(Level 3)

Total

Futures contracts+

3,584

+	Futures contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended June 30, 2012, the Fund did not have any transfers into/out of Level 1 and Level 2.

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:


	Municipal obligations
Balance as of December 31, 2011	$	149,056
Accrued discounts (premiums)		3,748
Realized gains (losses)		(8,840	)
Change in unrealized gains (losses)		(5,139	)
Purchases		1,325,313
Sales		(62,250	)
Transfers into Level 3		0
Transfers out of Level 3		0
Balance as of June 30, 2012	$	1,401,888
Change in unrealized gains (losses) relating to securities still held at June 30, 2012	$	(16,930	)


20		Wells Fargo Managed Account CoreBuilder Shares – Series M		Notes to Financial Statements (Unaudited)

The municipal obligations in the Level 3 table consist of failed auction rate securities which were valued using indicative broker quotes and are therefore considered Level 3 inputs.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the sub-adviser, who is responsible for day-to-day portfolio management of the Fund. For providing these services, Funds Management does not receive a fee from the Fund but is entitled to receive fees from the sponsors of the wrap-fee programs. Out of these fees, Funds Management pays Wells Capital Management Incorporated, an affiliate of Funds Management, for its services as the sub-adviser to the Fund.

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, 2012 were $23,986,525 and $5,951,785, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended June 30, 2012, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help shorten the duration of the portfolio.

At June 30, 2012, the Fund had short futures contracts outstanding as follows:

Expiration Date

Contracts

Type

Contract
Value at
June 30, 2012

Unrealized
Gains

September 2012

5 Short

30-Year U.S. Treasury Bonds

739,844

3,584

The Fund had an average notional amount of $679,705 in short futures contracts during the six months ended June 30, 2012.

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

7. CONCENTRATION OF OWNERSHIP

From time to time, the Fund may have a concentration of one or more of its shareholders that hold a significant percentage of the Fund’s shares outstanding. Investment and/or voting activities of these shareholders with respect to their holdings in the Fund shares could have a material impact on the Fund.

At June 30, 2012, the following shareholders held 22.41% of the outstanding shares of the Fund


	% of ownership
Wells Capital Management Incorporated		14.56	%
Citigroup Global Markets Incorporated		7.85	%

8. INDEMNIFICATION


Notes to Financial Statements (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			21

9. NEW ACCOUNTING PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210 Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

10. SUBSEQUENT DISTRIBUTION

On July 12, 2012, the Fund declared distributions from short-term capital gains to shareholders of record on July 11, 2012. The per share amount payable on July 13, 2012 was $0.01621.

This distribution is not reflected in the accompanying financial statements.


22		Wells Fargo Managed Account CoreBuilder Shares – Series M		Other Information (Unaudited)

PROXY VOTING INFORMATION

PORTFOLIO HOLDINGS INFORMATION


Other Information (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			23

BOARD OF TRUSTEES AND OFFICERS

Independent Trustees


Name and Year of Birth	Position Held and Length of Service*	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	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. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, 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
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 40 portfolios as of 12/31/11); 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 Corporate Governance Research Program 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
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	President and CEO 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


24		Wells Fargo Managed Account CoreBuilder Shares – Series M		Other Information (Unaudited)


Name and Year of Birth	Position Held and Length of Service*	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (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 and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

*	Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

Officers


Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Senior Counsel of Wells Fargo Bank, N.A. since 1996.
Nancy Wiser (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma (Born 1974)	Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.

1.	The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.


Other Information (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			25

BOARD CONSIDERATION OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:

Under Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”), all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), must determine whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in person meeting held on March 29-30, 2012 (the “Meeting”), the Board reviewed and re-approved: (i) an investment advisory agreement with Wells Fargo Funds Management, LLC (“Funds Management”) for Wells Fargo Managed Account CoreBuilder Shares (SM) – Series M (the “Fund”) and (ii) an investment sub-advisory agreement with Wells Capital Management Incorporated (“Wells Capital Management”) for the Fund. The investment advisory agreement with Funds Management and the investment sub-advisory agreement with Wells Capital Management are collectively referred to as the “Advisory Agreements.”

Nature, extent and quality of services


26		Wells Fargo Managed Account CoreBuilder Shares – Series M		Other Information (Unaudited)

Fund performance and expenses

Investment advisory and sub-advisory fee rates

Profitability

Economies of scale

In light of the unique fee and distribution structure of the Fund, the Board did not conduct an analysis of economies of scale in the context of reviewing the Fund’s Advisory Agreements.

Other benefits to Funds Management and Wells Capital Management


Other Information (Unaudited)		Wells Fargo Managed Account CoreBuilder Shares – Series M			27

Other factors and broader review

Conclusion


28		Wells Fargo Managed Account CoreBuilder Shares – Series M		List of Abbreviations

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

ACB	— Agricultural Credit Bank

ADR	— American Depository Receipt

ADS	— American Depository Shares

AGC-ICC

— Assured Guaranty Corporation - Insured Custody Certificates

AGM	— Assured Guaranty Municipal

AMBAC

— American Municipal Bond Assurance Corporation

AMT	— Alternative Minimum Tax

AUD	— Australian Dollar

BAN	— Bond Anticipation Notes

BHAC	— Berkshire Hathaway Assurance Corporation

BRL	— Brazil Real

CAB	— Capital Appreciation Bond

CAD	— Canadian Dollar

CCAB	— Convertible Capital Appreciation Bond

CDA	— Community Development Authority

CDO	— Collateralized Debt Obligation

CHF	— Swiss Franc

COP	— Certificate of Participation

CR	— Custody Receipts

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

FFCB	— Federal Farm Credit Bank

FGIC	— Financial Guaranty Insurance Corporation

FGLMC

— Federal Government Loan Mortgage Company

FHA	— Federal Housing Authority

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 Depository 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

HUF	— Hungarian Forint

IBC	— Insured Bond Certificate

IDA	— Industrial Development Authority

IDAG	— Industrial Development Agency

IDR	— Industrial Development Revenue

IEP	— Irish Pound

JPY	— Japanese Yen

KRW	— Republic of Korea Won

LIBOR

— London Interbank Offered Rate

LIQ	— Liquidity Agreement

LLC	— Limited Liability Company

LLP	— Limited Liability Partnership

LOC	— Letter of Credit

LP	— Limited Partnership

MBIA	— Municipal Bond Insurance Association

MFHR	— Multi-Family Housing Revenue

MSTR	— Municipal Securities Trust Receipts

MTN	— Medium Term Note

MUD	— Municipal Utility District

MXN	— Mexican Peso

MYR	— Malaysian Ringgit

NATL-RE

— National Public Finance Guarantee Corporation

NOK	— Norwegian Krone

NZD	— New Zealand Dollar

PCFA	— Pollution Control Finance Authority

PCR	— Pollution Control Revenue

PFA	— Public Finance Authority

PFFA	— Public Facilities Financing Authority

PFOTER

— Puttable Floating Option Tax-Exempt Receipts

plc	— Public Limited Company

PLN	— Polish Zloty

PUTTER

— Puttable Tax-Exempt Receipts

R&D	— Research & Development

RDA	— Redevelopment Authority

RDFA	— Redevelopment Finance Authority

REIT	— Real Estate Investment Trust

ROC	— Reset Option Certificates

SAVRS

— Select Auction Variable Rate Securities

SBA	— Small Business Authority

SEK	— Swedish Krona

SFHR	— Single Family Housing Revenue

SFMR	— Single Family Mortgage Revenue

SGD	— Singapore Dollar

SKK	— Slovakian Koruna

SPA	— Standby Purchase Agreement

SPDR	— Standard & Poor’s Depositary Receipts

STRIPS

— Separate Trading of Registered Interest and Principal Securities

TAN	— Tax Anticipation Notes

TBA	— To Be Announced

TIPS	— Treasury Inflation-Protected Securities

TRAN	— Tax Revenue Anticipation Notes

TCR	— Transferable Custody Receipts

TRY	— Turkish Lira

TTFA	— Transportation Trust Fund Authority

TVA	— Tennessee Valley Authority

XLCA	— XL Capital Assurance

ZAR	— South African Rand

LOGO

FOR MORE INFORMATION

More information about the Fund is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Management

Attn: Managed Account Services

P.O. Box 1450

Milwaukee, WI 53201

E-mail: MAS@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

Managed Account Services: 1-800-368-0627

Sales Support Inquiries: 1-800-368-1683

NOT FDIC INSURED ¡ NO BANK GUARANTEE ¡ MAY LOSE VALUE

210661 08-12

SCBM/SAR130 06-12

ITEM 2.

CODE OF ETHICS

Not required in this filing

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT

Not required in this filing.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not required in this filing.

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS

Not required in this filing.

ITEM 6.

PORTFOLIO OF INVESTMENTS

The Portfolio of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7.

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

Not applicable.

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASES

Not applicable.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Governance Committee (the “Committee”) of the Board of Trustees of the registrant (the “Trust”) has adopted procedures by which a shareholder of any series of the Trust may submit properly a nominee recommendation for the Committee’s consideration.

The shareholder must submit any such recommendation (a “Shareholder Recommendation”) in writing to the Trust, to the attention of the Trust’s Secretary, at the address of the principal executive offices of the Trust.

The Shareholder Recommendation must be delivered to, or mailed and received at, the principal executive offices of the Trust not less than forty-five (45) calendar days nor more than seventy-five (75) calendar days prior to the date of the Committee meeting at which the nominee would be considered.

The Shareholder Recommendation must include: (i) a statement in writing setting forth (A) the name, age, date of birth, business address, residence address and nationality of the person recommended by the shareholder (the “candidate”); (B) the series (and, if applicable, class) and number of all shares of the Trust owned of record or beneficially by the candidate, as reported to such shareholder by the candidate; (C) any other information regarding the candidate called for with respect to director nominees by paragraphs (a), (d), (e) and (f) of Item 401 of Regulation S-K or paragraph (b) of Item 22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), adopted by the Securities and Exchange Commission (or the corresponding provisions of any regulation or rule subsequently adopted by the Securities and Exchange Commission or any successor agency applicable to the Trust); (D) any other information regarding the candidate that would be required to be disclosed if the candidate were a nominee in a proxy statement or other filing required to be made in connection with solicitation of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder; and (E) whether the recommending shareholder believes that the candidate is or will be an “interested person” of the Trust (as defined in the Investment Company Act of 1940, as amended) and, if not an “interested person,” information regarding the candidate that will be sufficient for the Trust to make such determination; (ii) the written and signed consent of the candidate to be named as a nominee and to serve as a Trustee if elected; (iii) the recommending shareholder’s name as it appears on the Trust’s books; (iv) the series (and, if applicable, class) and number of all shares of the Trust owned beneficially and of record by the recommending shareholder; and (v) a description of all arrangements or understandings between the recommending shareholder and the candidate and any other person or persons (including their names) pursuant to which the recommendation is being made by the recommending shareholder. In addition, the Committee may require the candidate to interview in person and furnish such other information as it may reasonably require or deem necessary to determine the eligibility of such candidate to serve as a Trustee of the Trust.

ITEM 11.

CONTROLS AND PROCEDURES

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

(b) There were no 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 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 required in this filing.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Wells Fargo Funds Trust

By:
		/s/ Karla M. Rabusch

		Karla M. Rabusch
		President

Date: August 24, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.


By:
		/s/ Karla M. Rabusch

		Karla M. Rabusch
		President

Date: August 24, 2012

By:
		/s/ Nancy Wiser

		Nancy Wiser
		Treasurer

Date: August 24, 2012