(WELLS FARGO LOGO)
ADVANTAGE FUNDS
(GRAPHIC)
Semi-Annual Report
April 30, 2008
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS
- WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND
- WELLS FARGO ADVANTAGE COMMON STOCK FUND
- WELLS FARGO ADVANTAGE MID CAP GROWTH FUND
- WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND
- WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND
- WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND
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CONTENTS
LETTER TO SHAREHOLDERS .................................................... 2
PERFORMANCE HIGHLIGHTS
C&B Mid Cap Value Fund .................................................... 4
Common Stock Fund ......................................................... 6
Mid Cap Growth Fund ....................................................... 8
Small Cap Growth Fund ..................................................... 10
Small Cap Opportunities Fund .............................................. 12
Small Cap Value Fund ...................................................... 14
FUND EXPENSES ............................................................. 16
PORTFOLIO OF INVESTMENTS
C&B Mid Cap Value Fund .................................................... 19
Common Stock Fund ......................................................... 23
Mid Cap Growth Fund ....................................................... 29
Small Cap Growth Fund ..................................................... 35
Small Cap Opportunities Fund .............................................. 41
Small Cap Value Fund ...................................................... 48
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ...................................... 56
Statements of Operations .................................................. 58
Statements of Changes in Net Assets ....................................... 60
Financial Highlights ...................................................... 68
NOTES TO FINANCIAL STATEMENTS ............................................. 76
OTHER INFORMATION ......................................................... 87
LIST OF ABBREVIATIONS ..................................................... 92
NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE
(GRAPHIC)
WELLS FARGO ADVANTAGE FUNDS(R)
WELLS FARGO INVESTMENT HISTORY
1971 INTRODUCED ONE OF THE FIRST INSTITUTIONAL INDEX FUNDS.
1978 ONE OF THE FIRST FIRMS TO APPLY ASSET ALLOCATION THEORY TO INVESTMENT
PORTFOLIO MANAGEMENT.
1985 ONE OF THE FIRST FIRMS TO CREATE A THREE-WAY ASSET ALLOCATION FUND THAT
"TILTS" INVESTMENTS TOWARD PORTIONS OF THE MARKET THAT OUR PROPRIETARY MODELS
INDICATE WILL PERFORM BETTER.
1994 INTRODUCED TARGET DATE FUNDS THAT AUTOMATICALLY REALLOCATE THE ASSET MIX
OVER SPECIFIC TIME HORIZONS.
1997 WELLS FARGO LAUNCHED THE WEALTHBUILDER PORTFOLIOS, A UNIQUE "FUND OF FUNDS"
THAT USES FLEXIBLE ASSET ALLOCATION STRATEGIES TO SHIFT ASSETS.
1999 REORGANIZED THE NORWEST ADVANTAGE FUNDS(R) AND STAGECOACH FUNDS(R) INTO THE
WELLS FARGO FUNDS(R).
2003 EXPANDED FIXED-INCOME, SMALL CAP, AND EMERGING MARKETS LINEUP FROM
MONTGOMERY ASSET MANAGEMENT, LLC.
2004 ADDED ADDITIONAL LARGE CAP AND MID CAP FUNDS TO THE LINEUP BY ADOPTING THE
COOKE & BIELER VALUE FUNDS.
2005 WELLS FARGO FUNDS MERGED WITH STRONG FUNDS TO BECOME WELLS FARGO ADVANTAGE
FUNDS, FORMING A FUND FAMILY OF OVER 120 FUNDS AND PLACING IT AMONG THE TOP 20
MUTUAL FUND FAMILIES IN THE UNITED STATES.
2006 ENHANCED AND RENAMED THE WELLS FARGO ADVANTAGE OUTLOOK FUNDS(SM) TO THE
WELLS FARGO ADVANTAGE DOW JONES TARGET DATE FUNDS(SM), WHICH SEEK TO REPLICATE
RETURNS OF THE APPROPRIATE DOW JONES TARGET DATE INDEXES, THE FIRST LIFE CYCLE
INDEXES IN THE INVESTMENT INDUSTRY.
Integrity. Expertise. Solutions.
GUIDED BY A DISTINGUISHED HERITAGE. Since 1852 Wells Fargo has distinguished
itself by safely delivering people and their valuables to distant destinations.
To meet the needs of a vibrant, expanding nation, the company successfully
forged partnerships with local specialists who knew the terrain.
Although much has changed since then, WELLS FARGO ADVANTAGE FUNDS continues to
put the same time and effort into selecting independent portfolio management
teams who oversee our Funds. It's our way of maintaining this early commitment
to integrity and expertise and to providing solutions that help you reach your
destination.
INDEPENDENT THINKING. With a primary focus on delivering long-term performance
and risk management, our approach offers investors access to the strategic
thinking of independent investment teams from 15 different management firms.
While each of our teams concentrates on a specific strategy, collectively they
provide in-depth knowledge and insight across distinct investment styles.
TIME-TESTED APPROACH. Our teams are chosen for their expertise in particular
investment styles and for their consistent, repeatable processes. All remain
independent and free to concentrate solely on managing money and producing
results. Our strict adherence to this approach provides a consistent focus on
long-term results and allows investors to tap into the expertise of leading
institutional investment managers to create fully diversified portfolios.
SOLUTIONS FOR EVERY STAGE. WELLS FARGO ADVANTAGE FUNDS provides investors with
strategic investment solutions that help navigate the complex and ever-changing
investment landscape. Our diverse family of mutual funds includes more than 120
Funds that cover a broad spectrum of investment styles and asset classes, and
each Fund has its own disciplined approach to investing.
NOT PART OF THE SEMI-ANNUAL REPORT.
WELLS FARGO ADVANTAGE FUNDS OFFERS MORE THAN 120 MUTUAL FUNDS ACROSS A WIDE
RANGE OF ASSET CLASSES, REPRESENTING OVER $156 BILLION IN ASSETS UNDER
MANAGEMENT, AS OF APRIL 30, 2008.
EQUITY FUNDS
Asia Pacific Fund Equity Value Fund Opportunity Fund
C&B Large Cap Value Fund Growth and Income Fund Overseas Fund
C&B Mid Cap Value Fund Growth Fund Small Cap Disciplined Fund
Capital Growth Fund Growth Equity Fund Small Cap Growth Fund
Common Stock Fund Index Fund Small Cap Opportunities Fund
Discovery Fund International Core Fund Small Cap Value Fund
Diversified Equity Fund International Equity Fund Small Company Growth Fund
Diversified Small Cap Fund International Value Fund Small Company Value Fund
Emerging Growth Fund Large Cap Appreciation Fund Small/Mid Cap Value Fund
Emerging Markets Equity Fund Large Cap Growth Fund Specialized Financial Services Fund
Endeavor Large Cap Fund Large Company Core Fund Specialized Technology Fund
Endeavor Select Fund Large Company Growth Fund Strategic Small Cap Value Fund
Enterprise Fund Large Company Value Fund U.S. Value Fund
Equity Income Fund Mid Cap Disciplined Fund Value Fund
Equity Index Fund Mid Cap Growth Fund
BOND FUNDS
California Limited-Term Tax-Free Fund Inflation-Protected Bond Fund Short-Term High Yield Bond Fund
California Tax-Free Fund Intermediate Government Income Fund(1) Short-Term Municipal Bond Fund
Colorado Tax-Free Fund Intermediate Tax-Free Fund Stable Income Fund
Corporate Bond Fund Minnesota Tax-Free Fund Strategic Income Fund
Diversified Bond Fund Municipal Bond Fund Total Return Bond Fund
Government Securities Fund(1) National Limited-Term Tax-Free Fund Ultra Short-Term Income Fund
High Income Fund National Tax-Free Fund Ultra Short-Term Municipal Income Fund
High Yield Bond Fund Short Duration Government Bond Fund(1) Ultra-Short Duration Bond Fund
Income Plus Fund Short-Term Bond Fund Wisconsin Tax-Free Fund
ASSET ALLOCATION FUNDS
Aggressive Allocation Fund WealthBuilder Conservative Allocation Portfolio Target 2020 Fund(2)
Asset Allocation Fund WealthBuilder Equity Portfolio Target 2025 Fund(2)
Balanced Fund WealthBuilder Growth Allocation Portfolio Target 2030 Fund(2)
Conservative Allocation Fund WealthBuilder Growth Balanced Portfolio Target 2035 Fund(2)
Growth Balanced Fund WealthBuilder Moderate Balanced Portfolio Target 2040 Fund(2)
Moderate Balanced Fund WealthBuilder Tactical Equity Portfolio Target 2045 Fund(2)
Life Stage-Aggressive Portfolio Target Today Fund(2) Target 2050 Fund(2)
Life Stage-Conservative Portfolio Target 2010 Fund(2)
Life Stage-Moderate Portfolio Target 2015 Fund(2)
MONEY MARKET FUNDS
100% Treasury Money Market Fund(1) Heritage Money Market Fund National Tax-Free Money Market Fund
California Tax-Free Money Market Fund Minnesota Money Market Fund National Tax-Free Money Market Trust
California Tax-Free Money Market Trust Money Market Fund Overland Express Sweep Fund
Cash Investment Money Market Fund Money Market Trust Prime Investment Money Market Fund
Government Money Market Fund(1) Municipal Money Market Fund Treasury Plus Money Market Fund(1)
VARIABLE TRUST FUNDS(3)
VT Asset Allocation Fund VT International Core Fund VT Opportunity Fund
VT C&B Large Cap Value Fund VT Large Company Core Fund VT Small Cap Growth Fund
VT Discovery Fund VT Large Company Growth Fund VT Small/Mid Cap Value Fund
VT Equity Income Fund VT Money Market Fund VT Total Return Bond Fund
AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE WELLS
FARGO ADVANTAGE MONEY MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT
AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN A MONEY MARKET
FUND.
(1) The U.S. Government guarantee applies to certain of the underlying
securities and NOT to shares of the Fund.
(2) The full name of this Fund series is the WELLS FARGO ADVANTAGE DOW JONES
TARGET DATE FUNDS(SM).
(3) The Variable Trust Funds are generally available only through insurance
company variable contracts.
NOT PART OF THE SEMI-ANNUAL REPORT.
2 Wells Fargo Advantage Small and Mid Cap Stock Funds
Letter to Shareholders
(PHOTO OF KARLA M. RABUSCH)
KARLA M. RABUSCH
President
WELLS FORGO ADVANTAGE FUNDS
FALLING PRICES OF NEW AND EXISTING HOMES ESPECIALLY AFFECTED SUBPRIME BORROWERS
WHO FALTERED WHEN EASY ACCESS TO CREDIT ALL BUT DISAPPEARED FOR THEM AND
MARKET-VALUE EQUITY ON THEIR HOMES DECLINED.
DEAR VALUED SHAREHOLDER,
We're pleased to offer you this semi-annual report for the Wells Fargo Advantage
Small and Mid Cap Stock Funds that covers the six-month period that ended April
30, 2008. During the period, the economy struggled to absorb slower growth, high
energy prices, a continuing correction in the housing market, and tighter
lending practices that presented financial challenges to businesses and
consumers.
Falling prices of new and existing homes especially affected subprime borrowers
who faltered when easy access to credit all but disappeared for them and
market-value equity on their homes declined. The price correction in the market
value of homes prevented many struggling borrowers from paying off their full
mortgage balances by selling their homes. Housing market woes also had a ripple
effect as financial markets began to assess the full impact of the subprime
loans that had been packaged and sold both in the United States and abroad. The
rapid collapse of investment bank Bear Stearns, due to high write-offs in its
mortgage-related assets, highlighted some of the more significant risks within
the market.
THE FED RESPONDED IN MANY WAYS.
First, the Fed lowered the federal funds rate (the rate at which member banks
borrow money from each other) by 250 basis points (100 basis points equals
1.00%), with the latest rate cut during the period occurring on April 30.
Second, it lowered the discount rate (the rate at which banks borrow money
directly from the Fed) by 275 basis points. And third, it agreed to make the
discount window available to nonbank dealers and to lend to banks for
longer-than-normal periods of time to help ease some of the constraints on
liquidity. In addition, the Fed launched several other new programs to provide
liquidity to financial institutions.
INVESTORS SOUGHT RELATIVE SAFETY IN MONEY MARKET FUNDS AND IN THE U.S. TREASURY
MARKET.
During the six-month period, the Lehman Brothers U.S. Treasury Index1 returned
5.87%, compared to 4.08% for the broad bond market, as measured by the Lehman
Brothers U.S. Aggregate Index(2). Corporate and high-yield bonds trailed as
investors worried about the effect of a slowing economy on potential future
default rates. In the international credit markets, Europe and Britain
experienced some of the same concerns over liquidity that were felt in the U.S.
credit markets, which resulted in tighter lending practices overseas.
----------
(1) Lehman Brothers U.S. Treasury Index includes public obligations of the U.S.
Treasury. Includes only notes and bonds with a minimum outstanding
principal amount of $50 million and a minimum maturity of one year. You
cannot invest directly in an index.
(2) The Lehman Brothers U.S. Aggregate Index includes bonds from the Treasury,
government-related, corporate, agency, mortgage-backed securities, and
asset-backed securities sectors. You cannot invest directly in an index.
Wells Fargo Advantage Small and Mid Cap Stock Funds 3
Letter to Shareholders
THE STOCK MARKET STRUGGLED IN MOST AREAS.
The S&P 500 Index declined 9.64% for the six-month period. Within the S&P 500
Index, value stocks underperformed growth stocks, largely because of continued
weakness in financials as the credit fallout from the housing crisis continued
to work its way through the system. The S&P Financial Index (3) declined 20.03%
for the period. Small cap stocks underperformed large caps, in part because
investors tend to prefer better-established companies during uncertain periods.
Both small caps and large caps underperformed mid cap stocks, which pair some of
the higher growth rates of small caps with some of the financial stability of
large caps. Energy stocks were one of the few bright spots in the market, as oil
prices continued to rise.
PLANNING AHEAD.
The continued uncertainty surrounding the housing market, liquidity, and
inflation supports our belief that successful investing includes a balanced
approach of owning a diversified portfolio while keeping a long-term
perspective. While diversification may not prevent losses in a downturn, it may
help to reduce them and provide you with one way of managing risk. Our diverse
family of mutual funds may also help. We offer more than 120 Funds that cover a
broad spectrum of investment styles and asset classes. Each Fund is managed
according to a disciplined approach to investing that features the strategic
thinking of portfolio managers chosen for their in-depth knowledge and
methodology. We believe that our insistence on seeking investment teams who
share our dedication to pursuing consistent, long-term results offers you a way
to navigate changing market conditions and move forward with your financial
planning.
Thank you for choosing Wells Fargo Advantage Funds. We appreciate your
confidence in us. Through each market cycle, we are committed to helping you
meet your financial needs. If you have any questions about your investment,
please contact your investment professional or call us at 1-800-222-8222. You
may also want to visit our Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
Sincerely,
/s/ Karla M. Rabusch
Karla M. Rabusch
President
Wells Fargo Advantage Funds
ENERGY STOCKS WERE ONE OF THE FEW BRIGHT SPOTS IN THE MARKET, AS OIL PRICES
CONTINUED TO RISE.
THE CONTINUED UNCERTAINTY SURROUNDING THE HOUSING MARKET, LIQUIDITY, AND
INFLATION SUPPORTS OUR BELIEF THAT SUCCESSFUL INVESTING INCLUDES A BALANCED
APPROACH OF OWNING A DIVERSIFIED PORTFOLIO WHILE KEEPING A LONG-TERM
PERSPECTIVE.
----------
(3) The S&P Financial Index is a market-capitalization weighted index of
companies involved in activities such as banking, consumer finance,
investment banking and brokerage, asset management, insurance and
investment, and real estate, including REITs. You cannot invest directly in
an index.
4 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND (THE FUND) SEEKS MAXIMUM
LONG-TERM TOTAL RETURN (CURRENT INCOME AND CAPITAL APPRECIATION), CONSISTENT
WITH MINIMIZING RISK TO PRINCIPAL.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Cooke & Bieler, L.P.
PORTFOLIO MANAGERS
Kermit S. Eck, CFA
Daren C. Heitman, CFA
Michael M. Meyer, CFA
James R. Norris
Edward W. O'Connor, CFA
R. James O'Neil, CFA
Mehul Trivedi, CFA
FUND INCEPTION
February 18, 1998
SECTOR DISTRIBUTION1
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Staples (6%)
Consumer Discretionary (22%)
Financials (18%)
Information Technology (18%)
Industrials (17%)
Health Care (10%)
Materials (9%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Corinthian Colleges Incorporated 4.58%
Family Dollar Stores Incorporated 4.39%
Diebold Incorporated 4.26%
International Flavors & Fragrances Incorporated 3.87%
Pilgrims Pride Corporation 3.66%
Harte-Hanks Incorporated 3.55%
Dover Corporation 3.52%
Briggs & Stratton Corporation 3.49%
Alpharma Incorporated 3.41%
Quest Diagnostics Incorporated 3.36%
----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 5
Performance Highlights
WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
C&B MID CAP FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (CBMAX) (19.66) (25.37) 9.21 9.36 (14.76) (20.82) 10.50 10.01 1.36% 1.40%
Class B (CBMBX)** (20.08) (26.40) 9.42 9.20 (15.08) (21.40) 9.70 9.20 2.11% 2.15%
Class C (CBMCX) (16.03) (22.39) 9.71 9.21 (15.03) (21.39) 9.71 9.21 2.11% 2.15%
Class D (CBMDX) (14.72) (20.73) 10.61 10.07 1.36% 1.25%
Administrator Class (CBMIX) (14.67) (20.63) 10.70 10.11 1.18% 1.15%
Institutional Class (CBMSX) (14.56) (20.43) 10.91 10.21 0.91% 0.90%
BENCHMARK
Russell Midcap(R) Value
Index(6) (9.20) (11.65) 16.44 8.86
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE AT THE FUNDS' WEB SITE
-WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE PERIOD SHOWN. CLASS D,
ADMINISTRATOR CLASS AND INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT A FRONT-END
SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. Smaller company stocks
tend to be more volatile and less liquid than those of larger companies. The use
of derivatives may reduce returns and/or increase volatility. Consult the Fund's
prospectus for additional information on these and other risks.
----------
(3) Class A, Class B, Class C, Institutional Class and Administrative Class
shares incepted on July 26, 2004. Performance shown prior to the inception
of the Class A, Class B, and Class C shares reflects the performance of the
unnamed share class of the C&B Mid Cap Value Portfolio, the predecessor
fund, adjusted to reflect Class A, Class B and Class C sales charges and
expenses, as applicable. Prior to April 11, 2005, the Administrator Class
was named the Institutional Class and the Institutional Class was named the
Select Class. Performance shown for the Administrator Class and the
Institutional Class shares prior to the inception of the Administrator
Class and Institutional Class shares reflects the performance of the
unnamed share class of the predecessor fund, and includes expenses that are
not applicable to and are higher than those of the Administrator Class and
Institutional Class shares. Class D shares incepted on February 18,
1998.Performance shown prior to July 27, 2004 for the Class D shares
reflects the performance of the unnamed share class of the predecessor
fund.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, to waive fees and/or reimburse expenses to the extent necessary to
maintain the net operating expense ratio shown. Without these reductions,
the Fund's returns would have been lower.
(6) The Russell Midcap Value Index measures the performance of those Russell
Midcap companies with lower price-to-book ratios and lower forecasted
growth values. The stocks are also members of the Russell 1000(R) Value
Index. You cannot invest directly in an Index.
6 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE COMMON STOCK FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE COMMON STOCK FUND (THE FUND) SEEKS LONG-TERM CAPITAL
APPRECIATION.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
Ann M. Miletti
FUND INCEPTION
December 29, 1989
SECTOR DISTRIBUTION1
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (20%)
Consumer Staples (5%)
Energy (13%)
Financials (11%)
Health Care (11%)
Industrials (12%)
Information Technology (19%)
Materials (7%)
Telecommunication Services (2%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Apache Corporation 2.48%
EOG Resources Incorporated 2.40%
Cameron International Corporation 1.97%
Republic Services Incorporated 1.96%
Smith International Incorporated 1.92%
Noble Corporation 1.83%
Ret Hat Incorporated 1.68%
Gatx Corporation 1.66%
Forest Oil Corporation 1.59%
Marshall Ilsley Corporation 1.58%
----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 7
Performance Highlights
WELLS FARGO ADVANTAGE COMMON STOCK FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN3 (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
COMMON STOCK FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
--------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (SCSAX) (12.24) (6.77) 13.36 7.33 (6.89) (1.09) 14.72 7.96 1.39% 1.31%
Class B (SCSKX)** (12.27) (6.83) 13.60 7.42 (7.27) (1.83) 13.84 7.42 2.14% 2.06%
Class C (STSAX) (8.28) (2.88) 13.83 7.25 (7.28) (1.88) 13.83 7.25 2.14% 2.06%
Class Z (STCSX) (6.88) (1.05) 14.84 8.19 1.56% 1.29%
BENCHMARK
Russell 2500(TM) Index(6) (10.90) (8.84) 14.91 7.42
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
-WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT
DEFERRED SALES CHARGE.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. Smaller company stocks
tend to be more volatile and less liquid than those of larger companies. The use
of derivatives may reduce returns and/or increase volatility. Certain investment
strategies tend to increase the total risk of an investment (relative to the
broader market). This Fund is exposed to foreign investment risk. Consult the
Fund's prospectus for additional information on these and other risks.
----------
(3) Class A, Class B and Class C shares incepted on November 30, 2000.
Performance shown prior to April 11, 2005 for the Class A, Class B and
Class C shares reflects the performance of the Class A, Class B and Class C
shares, respectively, of the Strong Advisor Common Stock Fund, the
predecessor fund. Performance shown prior to the inception of the Class A,
Class B and Class C shares reflects the performance of the Class Z shares
of the predecessor fund, adjusted to reflect Class A, Class B and Class C
sales charges and expenses, as applicable. Class Z shares incepted on
December 29, 1989. Performance shown prior to April 11, 2005 for the Class
Z shares reflects the performance of the Class Z shares of the predecessor
fund.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, to waive fees and/or reimburse expenses to the extent necessary to
maintain the net operating expense ratio shown. Without these reductions,
the Fund's returns would have been lower.
(6) The Russell 2500 Index measures performance of the 2,500 smallest companies
in the Russell 3000(R) Index, which represents approximately 16% of the
total market capitalization of the Russell 3000 Index. You cannot invest
directly in an Index.
8 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE MID CAP GROWTH FUND
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE MID CAP GROWTH FUND (THE FUND) SEEKS LONG-TERM CAPITAL
APPRECIATION.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Jerome "Cam" Philpott, CFA
Stuart Roberts
FUND INCEPTION
December 30, 1994
SECTOR DISTRIBUTION1
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (16%)
Energy (6%)
Financials (4%)
Health Care (19%)
Industrials (23%)
Information Technology (24%)
Materials (2%)
Telecommunication Services (6%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
NII Holdings Incorporated 4.23%
VistaPrint Limited 3.78%
Textron Incorporated 3.29%
ITT Corporation 2.41%
Teletech Holdings Incorporated 2.38%
Gardner Denver Incorporated 2.37%
PMC - Sierrra Incorporated 2.28%
Microsemi Corporation 2.16%
FTI Consulting Incorporated 2.03%
Range Resources Corporation 1.93%
----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 9
Performance Highlights
WELLS FARGO ADVANTAGE MID CAP GROWTH FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
------------------------------------- ------------------------------------- -----------------
MID CAP GROWTH FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
-------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (WFMCX) (16.40) (3.82) 14.54 4.23 (11.30) 2.05 15.91 4.85 1.42% 1.40%
Class B (WFMBX)** (16.70) (3.84) 14.82 4.07 (11.70) 1.16 15.05 4.07 2.17% 2.15%
Class C (WFMHX) (12.71) 0.32 15.02 4.05 (11.71) 1.32 15.02 4.05 2.17% 2.15%
Class Z (WFMZX) (11.36) 1.91 15.73 4.70 1.59% 1.49%
Administrator Class (WMCGX) (11.30) 2.05 15.91 4.85 1.23% 1.15%
Institutional Class (WFMGX) (11.30) 2.05 15.91 4.85 0.97% 0.90%
BENCHMARK
Russell Midcap Growth Index(6) (8.44) (1.93) 15.29 5.75
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
-WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z, ADMINISTRATOR CLASS, AND INSTITUTIONAL CLASS SHARES ARE SOLD
WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. Smaller company stocks
tend to be more volatile and less liquid than those of larger companies. The use
of derivatives may reduce returns and/or increase volatility. Active trading
results in increased turnover and trading expenses and may generate higher
short-term capital gains. Consult the Fund's prospectus for additional
information on these and other risks.
----------
(3) Class A shares incepted on December 30, 1994. Class B and C shares incepted
on June 9, 2003. Performance of the Class B and Class C shares shown prior
to the inception of the Class B and Class C shares reflects the performance
of the Class A shares, adjusted to reflect Class B and Class C sales
charges and expenses, as applicable. Class Z shares incepted on April 11,
2005. Performance of the Class Z shares shown prior to the inception of the
Class Z shares reflects the performance of the Class A shares, adjusted to
reflect Class Z expenses. Administrator Class shares incepted on March 31,
2008. Performance shown for the Administrator Class shares reflects the
performance of the Class A shares and includes sales charges and expenses
that are not applicable to and are higher than those of the Administrator
Class shares. Institutional Class shares incepted on March 31, 2008.
Performance shown for the Institutional Class shares reflects the
performance of the Class A shares and includes sales charges and expenses
that are not applicable to and are higher than those of the Institutional
Class shares.
(4) For classes A, B, C, and Z, reflects the gross expense ratio as stated in
the March 1, 2008, prospectus. For the Administrator and Institutional
classes, this is the first fiscal year. These gross expense ratios as
stated in the April 1, 2008, prospectus are based on estimates for the
current fiscal year.
(5) The investment adviser has contractually committed through February 28,
2009, to waive fees and/or reimburse expenses to the extent necessary to
maintain the net operating expense ratio shown. Without these reductions,
the Fund's returns would have been lower.
(6) The Russell Midcap Growth Index measures the performance of those Russell
Midcap companies with higher price-to-book ratios and higher forecasted
growth values. The stocks are also members of the Russell 1000(R) Index.
You cannot invest directly in an Index.
10 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND
THE FUND IS CLOSED TO NEW INVESTORS.
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND (the Fund) seeks long-term
capital appreciation.
INVESTEMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGERS
Jerome "Cam" Philpott, CFA
Stuart Roberts
FUND INCEPTION
July 13, 1990
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (13%)
Energy (2%)
Financials (5%)
Health Care (17%)
Industrials (24%)
Information Technology (36%)
Telecommunication Services (3%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
VistaPrint Limited 3.42%
Skillsoft plc ADR 2.92%
InVentiv Health Incorporated 2.76%
Sciele Pharma Incorporated 2.38%
Resources Connection Incorporated 2.38%
Gardner Denver Incorporated 2.27%
Teletech Holdings Incorporated 2.24%
PMC Enterprises Incorporated 2.19%
Sykes Enterprises Incorporated 2.17%
Microsemi Corporation 2.07%
----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 11
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ---------------------------------- ----------------
SMALL CAP GROWTH FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
--------------------------------- --------- ------ ------ ------- --------- ------ ------ ------- -------- ------
Class A (MNSCX) (22.09) (9.95) 14.11 2.25 (17.34) (4.45) 15.47 2.86 1.51% 1.40%
Class B (WMNBX)** (22.61) (10.18) 14.37 2.09 (17.61) (5.18) 14.61 2.09 2.26% 2.15%
Class C (WMNCX) (18.58) (6.17) 14.64 2.10 (17.58) (5.17) 14.64 2.10 2.26% 2.15%
Class Z (WFSZX) (17.31) (4.61) 15.29 2.69 1.68% 1.49%
Administrator Class (WMNIX) (17.22) (4.26) 15.69 2.95 1.33% 1.20%
Institutional Class (WFSIX) (17.07) (4.00) 15.91 3.05 1.06% 0.90%
BENCHMARK
Russell 2000(R) Growth Index(6) (14.14) (6.70) 13.33 2.20
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
-WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z, ADMINISTRATOR CLASS AND INSTITUTIONAL CLASS SHARES ARE SOLD
WITHOUT A FRONT-END SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. Smaller company stocks
tend to be more volatile and less liquid than those of larger companies. The use
of derivatives may reduce returns and/or increase volatility. Active trading
results in increased turnover and trading expenses and may generate higher
short-term capital gains. Consult the Fund's prospectus for additional
information on these and other risks.
----------
(3) Class A shares incepted on July 13, 1990. Class B and Class C shares
incepted on June 9, 2003. Performance shown for Class B and Class C shares
prior to the inception of the Class B and Class C shares reflects the
performance of the Class A shares, adjusted to reflect Class B and Class C
sales charges and expenses, as applicable. Administrator Class shares
incepted on April 11, 2005. Prior to April 11, 2005, the Administrator
Class was named the Institutional Class. Performance shown for the
Administrator Class shares prior to the inception of the Administrator
Class shares reflects the performance of the Class A shares and includes
expenses that are not applicable to and are higher than those of the
Administrator Class shares, but does not include Class A sales charges, If
it did include Class A sales charges, returns would be lower. Institutional
Class shares incepted on April 11, 2005. Performance shown for the
Institutional Class shares prior to the inception of the Institutional
Class shares reflects the performance of the Administrator Class shares,
and includes expenses that are not applicable to and are higher than those
of the Institutional Class shares. Performance shown for the Institutional
Class shares prior to June 9, 2003 for the Institutional Class shares
reflects the performance of the Class A shares, and includes expenses that
are not applicable to and are higher than those of the Institutional Class
shares, but does not include Class A sales charges. If it did include Class
A sales charges, returns would be lower. Class Z shares incepted April 11,
2005. Performance shown for the Class Z shares prior to April 11, 2005
reflects the performance of the Class A shares, adjusted to reflect Class Z
expenses.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, to waive fees and/or reimburse expenses to the extent necessary to
maintain the net operating expense ratio shown. Without these reductions,
the Fund's returns would have been lower.
(6) The Russell 2000 Growth Index measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted
growth values. You cannot invest directly in an Index
12 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND
THE FUND IS CLOSED TO NEW INVESTORS.
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND (the Fund) seeks
long-term capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Schroder Investment Management North America Inc.
PORTFOLIO MANAGER
Jenny B. Jones
FUND INCEPTION
August 1, 1993
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIE CHART)
Consumer Discretionary (11%)
Consumer Staples (1%)
Energy (11%)
Financials (13%)
Health Care (13%)
Industrials (15%)
Information Technology (26%)
Materials (5%)
Telecommunication Services (2%)
Utilities (3%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
St Mary Land & Exploration Company 2.38%
Dresser Rand Group Incorporated 2.31%
Scientific Games Corporation Class A 2.23%
Reinsurance Group of America Incorporated 1.88%
Valueclick Incorporated 1.68%
Galleon Energy Incorporated Class A 1.64%
Bank of Hawaii Corporation 1.63%
Carbo Ceramics Incorporated 1.56%
GEO Group Incorporated 1.51%
Westamerica Bancorporation 1.50%
----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 13
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Expense Ratio
-----------------
SMALL CAP OPPORTUNITIES FUND 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
---------------------------- --------- ------ ------ ------- -------- ------
Administrator Class (NVSOX) (7.83) 0.00 19.14 10.30 1.31% 1.20%
BENCHMARK
Russell 2000 Index(6) (12.92) (10.96) 13.77 5.33
* Returns for periods of less than one year are not annualized.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. CURRENT
MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE -
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
ADMINISTRATOR CLASS SHARES ARE SOLD WITHOUT A FRONT-END SALES CHARGE OR
CONTINGENT DEFERRED SALES CHARGE.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. Smaller company stocks
tend to be more volatile and less liquid than those of larger companies. The use
of derivatives may reduce returns and/or increase volatility. Consult the Fund's
prospectus for additional information on these and other risks.
----------
(3) Prior to April 11, 2005, the Administrator Class was named the
Institutional Class.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, to waive fees and/or reimburse expenses to the extent necessary to
maintain the net operating expense ratio shown. Without these reductions,
the Fund's returns would have been lower.
(6) The Russell 2000 Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represents approximately 8%
of the total market capitalization of the Russell 3000 Index. You cannot
invest directly in an Index.
14 Wells Fargo Advantage Small and Mid Cap Stock Funds
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND
THE FUND IS CLOSED TO NEW INVESTORS.
INVESTMENT OBJECTIVE
THE WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND (the Fund) seeks long-term
capital appreciation.
INVESTMENT ADVISER
Wells Fargo Funds Management, LLC
SUBADVISER
Wells Capital Management Incorporated
PORTFOLIO MANAGER
I. Charles Rinaldi
FUND INCEPTION
December 31, 1997
SECTOR DISTRIBUTION(1)
(AS OF APRIL 30, 2008)
(PIECHART)
Energy (33%)
Materials (20%)
Industrials (12%)
Financials (10%)
Information Technology (9%)
Consumer Discretionary (7%)
Health Care (5%)
Consumer Staples (3%)
Telecommunication Services (1%)
TEN LARGEST EQUITY HOLDINGS(2)
(AS OF APRIL 30, 2008)
Randgold Resources Limited ADR 5.73%
Range Resources Corporation 5.24%
Goldcorp Incorporated 3.99%
Chicago Bridge & Iron Company NV New York Shares 3.49%
Global Industries Limited 3.04%
McMoran Exploration Company 3.00%
Champion Enterprises Incorporated 2.42%
Annaly Capital Management Incorporated 2.25%
Helmerich & Payne Incorporated 2.21%
Intermec Incorporated 2.21%
----------
(1) Sector distribution is subject to change. Cash and cash equivalents are not
reflected in the calculation of sector distribution.
(2) The ten largest equity holdings are calculated based on the market value of
the securities divided by total market value of the Fund.
Wells Fargo Advantage Small and Mid Cap Stock Funds 15
Performance Highlights
WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND (CONTINUED)
AVERAGE ANNUAL TOTAL RETURN(3) (%) (AS OF APRIL 30, 2008)
Including Sales Charge Excluding Sales Charge Expense Ratio
---------------------------------- ----------------------------------- ----------------
SMALL CAP VALUE FUND 6 Months* 1 Year 5 Year 10 Year 6 Months* 1 Year 5 Year 10 Year Gross(4) Net(5)
------------------------------ --------- ------ ------ ------- --------- ------- ------ ------- -------- ------
Class A (SMVAX) (14.53) (6.51) 18.20 12.90 (9.32) (0.82) 19.60 13.57 1.44% 1.44%
Class B (SMVBX)** (14.65) (6.57) 18.50 13.01 (9.65) (1.57) 18.70 13.01 2.19% 2.19%
Class C (SMVCX) (10.66) (2.57) 18.71 12.85 (9.66) (1.57) 18.71 12.85 2.19% 2.19%
Class Z (SSMVX) (9.29) (0.75) 19.74 13.77 1.61% 1.36%
Institutional Class (WFSVX) (9.12) (0.45) 19.82 13.81 0.99% 0.95%
BENCHMARK
Russell 2000 Value Index(6) (11.55) (15.13) 14.08 7.74
* Returns for periods of less than one year are not annualized.
** Class B shares are closed to investment, except in connection with the
reinvestment of any distributions and permitted exchanges.
FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS, AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER MAY PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
SHOWN WITHOUT SALES CHARGES WOULD BE LOWER IF SALES CHARGES WERE REFLECTED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
CURRENT MONTH-END PERFORMANCE IS AVAILABLE ON THE FUNDS' WEB SITE
-WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
FOR CLASS A SHARES, THE MAXIMUM FRONT-END SALES CHARGE IS 5.75%. FOR CLASS B
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 5.00%. FOR CLASS C
SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE IS 1.00%. PERFORMANCE
INCLUDING SALES CHARGE ASSUMES THE SALES CHARGE FOR THE CORRESPONDING TIME
PERIOD. CLASS Z AND INSTITUTIONAL CLASS SHARES ARE SOLD WITHOUT A FRONT-END
SALES CHARGE OR CONTINGENT DEFERRED SALES CHARGE.
Stock fund values fluctuate in response to the activities of individual
companies and general market and economic conditions. Smaller company stocks
tend to be more volatile and less liquid than those of larger companies. The use
of derivatives may reduce returns and/or increase volatility. Certain investment
strategies tend to increase the total risk of an investment (relative to the
broader market). This Fund is exposed to foreign investment risk. Consult the
Fund's prospectus for additional information on these and other risks.
----------
(3) Class A, Class B, and Class C shares incepted on November 30, 2000.
Performance shown prior to April 11, 2005 for the Class A, Class B, and
Class C shares reflects the performance of the Class A, Class B, and Class
C shares, respectively, of the Strong Advisor Small Cap Value Fund, the
predecessor fund, adjusted to reflect Class A, Class B, Class C sales
charges, as applicable. Performance shown prior to the inception of the
Class A, Class B and Class C shares reflects the performance of the Class Z
shares of the predecessor fund, adjusted to reflect Class A, Class B and
Class C sales charges and expenses, as applicable. Class Z shares incepted
on December 31, 1997. Performance shown for Class Z shares prior to April
11, 2005 reflects the performance of Class Z shares of the predecessor
fund. Institutional Class shares incepted on July 31, 2007. Performance
shown for the Institutional Class shares reflects the performance of the
Class Z shares, and includes expenses that are not applicable to, and are
higher than those of the Institutional Class shares. The Class Z shares
annual returns are substantially similar to what the Institutional Class
share returns would be because the Class Z shares and Institutional Class
shares are invested in the same portfolio and their returns differ only to
the extent that they do not have the same expenses. Performance shown prior
to April 11, 2005 for the Class Z shares reflects the performance of the
Class Z shares of the predecessor fund.
(4) Reflects the gross expense ratio as stated in the March 1, 2008,
prospectus.
(5) The investment adviser has contractually committed through February 28,
2009, to waive fees and/or reimburse expenses to the extent necessary to
maintain the net operating expense ratio shown. Without these reductions,
the Fund's returns would have been lower.
(6) The Russell 2000 Value Index measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth
values. You cannot invest directly in an Index.
16 Wells Fargo Advantage Small and Mid Cap Stock Funds
Fund Expenses
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, redemption fees (if
any) and exchange fees (if any); and (2) ongoing costs, including management
fees; distribution (12b-1) and/or shareholder service fees; and other Fund
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
six-month period and held for the entire six-month period, from November 1, 2007
to April 30, 2008.
ACTUAL EXPENSES
The "Actual" line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the "Actual" line under the heading entitled "Expenses Paid During Period"
for your applicable class of shares to estimate the expenses you paid on your
account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" line of the table below provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the
"Hypothetical" line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds.
In addition, if these transactional costs were included, your costs would have
been higher.
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE C&B MID CAP VALUE FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
------------------------------------------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $ 852.40 $ 6.45 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
CLASS B
Actual $1,000.00 $ 849.20 $ 9.89 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS C
Actual $1,000.00 $ 849.70 $ 9.89 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS D
Actual $1,000.00 $ 852.80 $ 5.80 1.25%
Hypothetical (5% return before expenses) $1,000.00 $1,018.60 $ 6.32 1.25%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 853.30 $ 5.30 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,019.14 $ 5.77 1.15%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 854.40 $ 4.15 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,020.39 $ 4.52 0.90%
Wells Fargo Advantage Small and Mid Cap Stock Funds 17
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE COMMON STOCK FUND 11-01-2007 04-30-2008 Period(1) Expense Ratio
------------------------------------------------------- ------------- ------------- ----------- -------------
CLASS A
Actual $1,000.00 $ 931.10 $ 6.29 1.31%
Hypothetical (5% return before expenses) $1,000.00 $1,018.35 $ 6.57 1.31%
CLASS B
Actual $1,000.00 $ 927.30 $ 9.87 2.06%
Hypothetical (5% return before expenses) $1,000.00 $1,014.62 $10.32 2.06%
CLASS C
Actual $1,000.00 $ 927.30 $ 9.87 2.06%
Hypothetical (5% return before expenses) $1,000.00 $1,014.62 $10.32 2.06%
CLASS Z
Actual $1,000.00 $ 931.20 $ 6.19 1.29%
Hypothetical (5% return before expenses) $1,000.00 $1,018.45 $ 6.47 1.29%
WELLS FARGO ADVANTAGE MID CAP GROWTH FUND
CLASS A
Actual $1,000.00 $ 887.00 $ 6.57 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
CLASS B
Actual $1,000.00 $ 883.00 $10.07 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS C
Actual $1,000.00 $ 882.90 $10.07 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
ADMINISTRATOR CLASS(2)
Actual $1,000.00 $ 887.00 $ 0.89 1.15%
Hypothetical (5% return before expenses) $1,000.00 $1,003.16 $ 0.94 1.15%
INSTITUTIONAL CLASS(2)
Actual $1,000.00 $ 887.00 $ 0.70 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,003.36 $ 0.74 0.90%
CLASS Z
Actual $1,000.00 $ 886.40 $ 7.22 1.54%
Hypothetical (5% return before expenses) $1,000.00 $1,017.17 $ 7.72 1.54%
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND
CLASS A
Actual $1,000.00 $ 826.60 $ 6.36 1.40%
Hypothetical (5% return before expenses) $1,000.00 $1,017.90 $ 7.02 1.40%
CLASS B
Actual $1,000.00 $ 823.90 $ 9.75 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS C
Actual $1,000.00 $ 824.20 $ 9.75 2.15%
Hypothetical (5% return before expenses) $1,000.00 $1,014.17 $10.77 2.15%
CLASS Z
Actual $1,000.00 $ 826.90 $ 7.04 1.55%
Hypothetical (5% return before expenses) $1,000.00 $1,017.16 $ 7.77 1.55%
ADMINISTRATOR CLASS
Actual $1,000.00 $ 827.80 $ 5.45 1.20%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.02 1.20%
18 Wells Fargo Advantage Small and Mid Cap Stock Funds
Fund Expenses
Beginning Ending Expenses
Account Value Account Value Paid During Net Annual
WELLS FARGO ADVANTAGE SMALL CAP GROWTH FUND(continued) 11-01-2007 04-30-2008 Period(1) Expense Ratio
------------------------------------------------------- ------------- ------------- ----------- -------------
INSTITUTIONAL CLASS
Actual $1,000.00 $ 829.30 $ 4.09 0.90%
Hypothetical (5% return before expenses) $1,000.00 $1,020.39 $ 4.52 0.90%
WELLS FARGO ADVANTAGE SMALL CAP OPPORTUNITIES FUND
ADMINISTRATOR CLASS
Actual $1,000.00 $ 921.70 $ 5.73 1.20%
Hypothetical (5% return before expenses) $1,000.00 $1,018.90 $ 6.02 1.20%
WELLS FARGO ADVANTAGE SMALL CAP VALUE FUND
CLASS A
Actual $1,000.00 $ 906.80 $ 6.83 1.44%
Hypothetical (5% return before expenses) $1,000.00 $1,017.70 $ 7.22 1.44%
CLASS B
Actual $1,000.00 $ 903.50 $10.36 2.19%
Hypothetical (5% return before expenses) $1,000.00 $1,013.97 $10.97 2.19%
CLASS C
Actual $1,000.00 $ 903.40 $10.36 2.19%
Hypothetical (5% return before expenses) $1,000.00 $1,013.97 $10.97 2.19%
CLASS Z
Actual $1,000.00 $ 907.10 $ 6.45 1.36%
Hypothetical (5% return before expenses) $1,000.00 $1,018.10 $ 6.82 1.36%
INSTITUTIONAL CLASS
Actual $1,000.00 $ 908.80 $ 4.51 0.95%
Hypothetical (5% return before expenses) $1,000.00 $1,020.14 $ 4.77 0.95%
----------
(1) Expenses are equal to the Fund's annualized expenses 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).
(2) This Class commenced operations on March 31, 2008. Actual expenses shown
for this class are equal to the annualized expense ratio multiplied by the
average account value over the period, multiplied by 30/366 (to reflect the
period from March 31, 2008 to April 30, 2008).
Wells Fargo Advantage Small and Mid Cap Stock Funds 19
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 95.41%
AMUSEMENT & RECREATION SERVICES: 2.18%
249,875 INTERNATIONAL SPEEDWAY CORPORATION CLASS A $ 10,599,698
------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS: 1.24%
380,635 JONES APPAREL GROUP INCORPORATED 6,025,452
------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS: 2.36%
18,700 NVR INCORPORATED<<+ 11,472,450
------------
BUSINESS SERVICES: 5.43%
607,375 IMS HEALTH INCORPORATED 15,032,531
805,270 MONEYGRAM INTERNATIONAL INCORPORATED<< 1,248,169
580,697 PARAMETRIC TECHNOLOGY CORPORATION+ 10,121,549
26,402,249
------------
CHEMICALS & ALLIED PRODUCTS: 8.99%
642,570 ALPHARMA INCORPORATED CLASS A<<+ 15,813,648
394,395 INTERNATIONAL FLAVORS & FRAGRANCES INCORPORATED 17,988,356
453,555 VALSPAR CORPORATION 9,969,139
43,771,143
------------
DEPOSITORY INSTITUTIONS: 1.61%
161,415 CITY NATIONAL CORPORATION 7,831,856
------------
EDUCATIONAL SERVICES: 4.37%
1,875,600 CORINTHIAN COLLEGES INCORPORATED<<+ 21,288,060
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 7.54%
442,005 CYMER INCORPORATED<<+ 11,487,710
1,297,490 FLEXTRONICS INTERNATIONAL LIMITED+ 13,480,921
413,575 MOLEX INCORPORATED 11,737,259
36,705,890
------------
FOOD & KINDRED PRODUCTS: 3.49%
703,510 PILGRIMS PRIDE CORPORATION<< 17,003,837
------------
FURNITURE & FIXTURES: 2.09%
916,050 STEELCASE INCORPORATED 10,149,834
------------
GENERAL MERCHANDISE STORES: 4.19%
952,960 FAMILY DOLLAR STORES INCORPORATED 20,393,344
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 14.59%
1,065,861 BRIGGS & STRATTON CORPORATION<< 16,222,404
120,015 CARLISLE COMPANIES INCORPORATED 3,466,033
504,665 DIEBOLD INCORPORATED 19,782,868
330,825 DOVER CORPORATION 16,365,913
2,010,755 ENTEGRIS INCORPORATED<<+ 15,161,093
70,998,311
------------
INSURANCE AGENTS, BROKERS & SERVICE: 6.88%
634,530 ARTHUR J. GALLAGHER & COMPANY<< 15,590,402
219,240 UNUMPROVIDENT CORPORATION 5,088,560
369,115 WILLIS GROUP HOLDINGS LIMITED 12,826,746
33,505,708
------------
20 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
INSURANCE CARRIERS: 6.28%
251,030 MBIA INCORPORATED<< $ 2,610,712
129,860 RENAISSANCERE HOLDINGS LIMITED 6,679,998
342,375 STEWART INFORMATION SERVICES CORPORATION<< 8,384,764
27,080 WHITE MOUNTAIN INSURANCE GROUP LIMITED 12,892,788
30,568,262
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 3.21%
311,235 QUEST DIAGNOSTICS INCORPORATED 15,617,772
------------
MISCELLANEOUS RETAIL: 3.62%
506,915 OFFICE DEPOT INCORPORATED+ 6,427,682
539,425 ZALE CORPORATION<<+ 11,176,886
17,604,568
------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 2.42%
838,508 CAPITALSOURCE INCORPORATED<< 11,781,037
------------
PAPER & ALLIED PRODUCTS: 2.80%
518,936 BEMIS COMPANY INCORPORATED<< 13,648,017
------------
PERSONAL SERVICES: 2.20%
339,266 G & K SERVICES INCORPORATED CLASS A 10,697,057
------------
PRIMARY METAL INDUSTRIES: 1.71%
186,350 HUBBELL INCORPORATED CLASS B 8,335,436
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 3.39%
1,207,300 HARTE HANKS INCORPORATED<< 16,491,718
------------
TEXTILE MILL PRODUCTS: 2.50%
335,750 ALBANY INTERNATIONAL CORPORATION CLASS A 12,187,725
------------
WHOLESALE TRADE NON-DURABLE GOODS: 2.32%
457,110 HAIN CELESTIAL GROUP INCORPORATED<<+ 11,281,474
------------
TOTAL COMMON STOCKS (COST $551,471,132) 464,360,898
------------
COLLATERAL FOR SECURITIES LENDING: 25.46%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 1.50%
1,046,355 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,046,355
1,279,572 BLACKROCKTEMP FUND B #24 MONEY MARKET FUND 1,279,572
2,711,415 DAILY ASSETS FUND INSTITUTIONAL 2,711,415
2,249,453 DREYFUS CASH MANAGEMENT FUND 2,249,453
7,286,795
------------
PRINCIPAL INTEREST RATE MATURITY DATE
---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 23.96%
$1,208,703 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 1,208,143
416,349 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 415,705
1,306,706 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 1,304,389
980,030 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 979,719
774,223 APRECO LLC++ 2.94 05/28/2008 772,532
2,740,816 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 2,740,816
653,353 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 652,728
816,691 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 815,959
Wells Fargo Advantage Small and Mid Cap Stock Funds 21
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$2,235,546 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,235,670) 2.00% 05/01/2008 $ 2,235,546
2,493,130 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,493,301) 2.47 05/01/2008 2,493,130
816,691 BANK OF IRELAND +++/- 3.06 10/14/2008 816,267
1,306,706 BANK OF SCOTLAND PLC 2.80 05/29/2008 1,303,871
8,769,076 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $8,769,563) 2.00 05/01/2008 8,769,076
653,353 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 651,994
671,157 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 669,672
653,353 CHARIOT FUNDING LLC++ 2.70 05/14/2008 652,716
653,353 CHARIOT FUNDING LLC++ 2.76 05/29/2008 651,956
1,732,825 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 1,247,634
1,332,682 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 959,531
416,349 CIESCO LLC++ 2.90 05/21/2008 415,713
963,696 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 961,250
3,270,032 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 3,270,032
2,450,074 CULLINAN FINANCE CORPORATION +++/- 2.51 08/04/2008 2,444,588
8,769,076 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $8,769,563) 2.00 05/01/2008 8,769,076
1,306,706 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 1,304,458
2,293,269 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 2,292,530
653,353 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 652,812
653,353 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 652,006
3,266,765 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 3,254,669
2,613,412 GALLEON CAPITAL LLC++ 2.90 05/21/2008 2,609,202
2,708,148 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 2,707,058
3,266,765 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 3,262,127
2,123,397 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 2,123,397
1,470,044 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 1,469,159
2,356,775 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 2,355,859
1,633,383 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 1,633,383
1,633,383 LINKS FINANCE LLC +++/- 2.52 08/15/2008 1,624,878
2,613,412 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $2,613,586) 2.40 05/01/2008 2,613,412
687,425 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 686,623
653,353 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 651,985
151,088 MORGAN STANLEY+/- 2.84 10/15/2008 150,967
1,480,988 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,481,070) 2.00 05/01/2008 1,480,988
2,989,090 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,989,290) 2.41 05/01/2008 2,989,090
1,306,706 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 1,305,141
1,633,383 NORTHERN ROCK PLC +++/- 2.79 10/03/2008 1,624,657
1,502,712 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 1,502,595
952,393 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 950,283
1,559,880 PICAROS FUNDING LLC++ 2.60 05/06/2008 1,559,317
653,353 PRUDENTIAL PLC++ 2.88 05/28/2008 651,947
2,613,412 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 2,613,202
22 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
C&B MID CAP VALUE FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$1,334,474 REGENCY MARKETS #1 LLC++ 2.97% 05/20/2008 $ 1,332,382
1,306,706 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 1,304,326
457,347 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 457,140
816,691 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 815,398
653,353 SLM CORPORATION+++/- 2.73 05/12/2008 653,016
3,397,436 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 3,396,105
1,012,697 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 902,921
1,633,383 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 1,456,324
653,353 SWEDBANK MORTGAGE AB 2.95 05/27/2008 651,966
1,143,368 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 1,142,644
1,489,580 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 1,487,842
816,691 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 814,803
4,900,148 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 4,897,523
816,691 UNICREDITO ITALIANO BANK (IRELAND) +++/- 2.74 10/14/2008 816,185
816,691 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB +++/- 2.76 10/08/2008 816,255
1,404,709 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 1,252,439
816,691 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 728,162
1,633,383 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 1,497,812
2,286,736 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 2,286,004
116,633,035
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $125,662,384) 123,919,830
------------
SHARES
------
SHORT-TERM INVESTMENTS: 2.86%
13,913,831 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 13,913,831
------------
TOTAL SHORT-TERM INVESTMENTS (COST $13,913,831) 13,913,831
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $691,047,347)* 123.73% $602,194,559
OTHER ASSETS AND LIABILITIES, NET (23.73) (115,496,286)
------ ------------
TOTAL NET ASSETS 100.00% $486,698,273
------ ------------
<< All or a portion of this security is on loan.
+ Non-income earning securities.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ This Wells Fargo Advantage Fund invests cash balances that it retains for
liquidity purposes in a Wells Fargo Advantage Money Market Fund. The Fund
does not pay an investment advisory fee for such investments.
## Security of an affiliate of the fund with a cost of $13,913,831.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 23
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 83.57%
AMUSEMENT & RECREATION SERVICES: 1.28%
315,000 International Speedway Corporation Class A $ 13,362,300
------------
APPAREL & ACCESSORY STORES: 2.50%
290,000 Kohl's Corporation+<< 14,166,500
335,000 Nordstrom Incorporated<< 11,812,100
25,978,600
------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS: 1.18%
353,000 Advance Auto Parts Incorporated 12,242,040
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 1.22%
185,000 Ryder System Incorporated 12,666,950
------------
BUSINESS SERVICES: 6.46%
450,000 Amdocs Limited+ 14,121,000
355,000 Citrix Systems Incorporated+ 11,626,250
805,000 Convergys Corporation+ 12,654,600
640,000 Eclipsys Corporation+<< 13,292,800
755,000 Red Hat Incorporated+<< 15,530,350
67,225,000
------------
CHEMICALS & ALLIED PRODUCTS: 3.99%
440,000 Amylin Pharmaceuticals Incorporated+<< 12,135,200
255,000 Hospira Incorporated+<< 10,493,250
295,000 International Flavors & Fragrances Incorporated 13,454,950
234,601 Nalco Holding Company 5,393,477
41,476,877
------------
COMMUNICATIONS: 7.91%
525,000 Cablevision Systems Corporation New York Group Class A+ 12,075,000
370,000 Clear Channel Communications Incorporated<< 11,155,500
1,005,000 Foundry Networks Incorporated+<< 12,793,650
235,000 Liberty Media Corporation - Entertainment Class A+ 6,098,250
820,000 Liberty Media Corporation Interactive Series A+ 12,406,600
480,000 Neustar Incorporated Class A+<< 13,204,800
740,000 Time Warner Telecom Incorporated+<< 14,504,000
82,237,800
------------
COMPUTER TECHNOLOGIES: 1.34%
591,000 Metavante Technologies Incorporated+<< 13,929,870
------------
DEPOSITORY INSTITUTIONS: 4.36%
189,000 Citigroup Incorporated 4,776,030
262,000 City National Corporation 12,712,240
90,000 JPMorgan Chase & Company 4,288,500
583,207 Marshall & Ilsley Corporation<< 14,568,511
195,000 Zions Bancorporation 9,038,250
45,383,531
------------
E-COMMERCE/SERVICES: 1.29%
960,000 GSI Commerce Incorporated+<< 13,363,200
------------
24 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
ELECTRIC, GAS & SANITARY SERVICES: 1.74%
570,000 Republic Services Incorporated $ 18,120,300
------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 3.88%
670,000 ALTERA CORPORATION 14,257,600
440,000 ENERSYS+ 10,296,000
526,000 FAIRCHILD SEMICONDUCTOR INTERNATIONAL INCORPORATED+ 6,859,040
442,000 TESSERA TECHNOLOGIES INCORPORATED+<< 8,946,080
40,358,720
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 1.31%
362,000 Accenture Limited Class A 13,593,100
------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT: 1.33%
515,000 CROWN HOLDINGS INCORPORATED+ 13,822,600
------------
FOOD & KINDRED PRODUCTS: 1.18%
203,300 GENERAL MILLS INCORPORATED 12,279,320
------------
FOOD STORES: 1.38%
525,000 KROGER COMPANY<< 14,306,250
------------
FURNITURE & FIXTURES: 1.13%
505,000 HERMAN MILLER INCORPORATED 11,781,650
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES: 0.96%
380,000 WILLIAMS-SONOMA INCORPORATED<< 10,032,000
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 5.92%
370,000 CAMERON INTERNATIONAL CORPORATION+<< 18,215,100
400,000 CARLISLE COMPANIES INCORPORATED 11,552,000
285,000 DOVER CORPORATION 14,098,950
231,000 SMITH INTERNATIONAL INCORPORATED 17,673,810
61,539,860
------------
INSURANCE AGENTS, BROKERS & SERVICE: 1.24%
370,000 WILLIS GROUP HOLDINGS LIMITED 12,857,500
------------
INSURANCE CARRIERS: 2.47%
560,000 HCC INSURANCE HOLDINGS INCORPORATED 13,820,800
230,000 RENAISSANCERE HOLDINGS LIMITED 11,831,200
25,652,000
------------
LEATHER & LEATHER PRODUCTS: 0.70%
205,000 COACH INCORPORATED+ 7,291,850
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 4.66%
880,000 AFFYMETRIX INCORPORATED+<< 9,600,800
965,000 BOSTON SCIENTIFIC CORPORATION+ 12,863,450
225,000 THERMO FISHER SCIENTIFIC INCORPORATED+ 13,020,750
395,000 TRIMBLE NAVIGATION LIMITED+<< 12,952,050
48,437,050
------------
MEDICAL EQUIPMENT & SUPPLIES: 1.10%
245,000 VARIAN MEDICAL SYSTEMS INCORPORATED+<< 11,485,600
------------
METAL MINING: 1.03%
276,000 BARRICK GOLD CORPORATION<< 10,659,120
------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 25
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
MISCELLANEOUS RETAIL: 0.67%
173,000 CVS CAREMARK CORPORATION $ 6,984,010
------------
MOTION PICTURES: 1.32%
492,000 TIME WARNER CABLE INCORPORATED+<< 13,776,000
------------
OIL & GAS EXTRACTION: 7.37%
170,000 APACHE CORPORATION 22,895,600
170,000 EOG RESOURCES INCORPORATED 22,181,600
249,000 FOREST OIL CORPORATION+<< 14,673,570
300,000 NOBLE CORPORATION 16,884,000
76,634,770
------------
PAPER & ALLIED PRODUCTS: 1.10%
520,000 PACKAGING CORPORATION OF AMERICA 11,429,600
------------
PRIMARY METAL INDUSTRIES: 0.52%
155,000 ALCOA INCORPORATED 5,390,900
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 0.72%
291,317 INVESCO LIMITED 7,472,281
------------
TRANSPORTATION BY AIR: 0.98%
535,000 SKYWEST INCORPORATED 10,181,050
------------
TRANSPORTATION EQUIPMENT: 2.52%
218,000 AUTOLIV INCORPORATED 13,350,320
773,700 BRUNSWICK CORPORATION<< 12,905,316
26,255,636
------------
TRANSPORTATION SERVICES: 1.47%
348,000 GATX CORPORATION 15,312,000
------------
TRAVEL & RECREATION: 0.88%
228,800 CARNIVAL CORPORATION<< 9,190,894
------------
WHOLESALE TRADE NON-DURABLE GOODS: 3.35%
210,000 MCKESSON CORPORATION 10,945,200
445,000 SYSCO CORPORATION 13,603,650
290,000 TRACTOR SUPPLY COMPANY+<< 10,312,400
34,861,250
------------
WHOLESALE TRADE-DURABLE GOODS: 1.11%
425,000 ARROW ELECTRONICS INCORPORATED+<< 11,564,250
------------
TOTAL COMMON STOCKS (COST $729,684,399) 869,135,729
------------
UNITS MATURITY DATE
---------- -------------
EXCHANGEABLE NOTES: 1.82%
93,600 CARDINAL HEALTH INCORPORATED+++(J) 05/05/2008 4,842,303
533,000 CORNING INCORPORTATED MTN+(J) 05/29/2008 14,092,520
TOTAL EXCHANGEABLE NOTES (COST $18,467,649) 18,934,823
------------
26 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
INVESTMENT COMPANIES: 3.34%
STOCK FUNDS: 3.34%
90,000 MIDCAP SPDR TRUST SERIES 1<< $ 13,702,500
95,000 VANGUARD TOTAL STOCK MARKET ETF 13,063,450
95,000 VANGUARD UTILITIES ETF 7,956,250
TOTAL INVESTMENT COMPANIES (COST $34,817,413) 34,722,200
------------
COLLATERAL FOR SECURITIES LENDING: 12.46%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 0.73%
1,093,768 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,093,768
1,337,553 BLACKROCKTEMP B #24 MONEY MARKET FUND 1,337,553
2,834,277 DAILY ASSETS FUND INSTITUTIONAL 2,834,277
2,351,382 DREYFUS CASH MANAGEMENT FUND 2,351,382
------------
7,616,980
PRINCIPAL INTEREST RATE MATURITY DATE
---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 11.73%
$1,263,473 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 1,262,887
435,215 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 434,542
1,365,916 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 1,363,494
1,024,437 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 1,024,113
809,305 APRECO LLC++ 2.94 05/28/2008 807,537
2,865,010 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 2,865,010
682,958 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 682,305
853,698 BANCO SANTANDER TOTTA 2.73 10/15/2008 852,932
2,336,844 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,336,974) 2.00 05/01/2008 2,336,844
2,606,100 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,606,279) 2.47 05/01/2008 2,606,100
853,698 BANK OF IRELAND +++/- 3.06 10/14/2008 853,254
1,365,916 BANK OF SCOTLAND PLC 2.80 05/29/2008 1,362,952
9,166,426 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY 2.00 05/01/2008 9,166,426
VALUE $9,166,935)
682,958 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 681,538
701,569 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 700,017
682,958 CHARIOT FUNDING LLC++ 2.70 05/14/2008 682,292
682,958 CHARIOT FUNDING LLC++ 2.76 05/29/2008 681,497
1,811,344 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 1,304,167
1,393,069 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 1,003,010
435,215 CIESCO LLC++ 2.90 05/21/2008 434,550
1,007,363 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 1,004,807
3,418,206 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 3,418,206
2,561,093 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 2,555,359
9,166,426 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $9,166,935) 2.00 05/01/2008 9,166,426
1,365,916 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 1,363,566
2,397,183 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 2,396,411
682,958 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 682,393
682,958 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 681,550
3,414,791 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 3,402,146
Wells Fargo Advantage Small and Mid Cap Stock Funds 27
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$2,731,833 GALLEON CAPITAL LLC++ 2.90% 05/21/2008 $ 2,727,431
2,830,862 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 2,829,722
3,414,791 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 3,409,942
2,219,614 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 2,219,614
1,536,656 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 1,535,731
2,463,567 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 2,462,609
1,707,395 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 1,707,395
1,707,395 LINKS FINANCE LLC+++/- 2.52 08/15/2008 1,698,505
2,731,833 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $2,732,015) 2.40 05/01/2008 2,731,833
718,574 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 717,736
682,958 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 681,528
157,934 MORGAN STANLEY+/- 2.84 10/15/2008 157,808
1,548,095 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,548,181) 2.00 05/01/2008 1,548,095
3,124,534 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $3,124,743) 2.41 05/01/2008 3,124,534
1,365,916 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 1,364,280
1,707,395 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 1,698,275
1,570,804 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 1,570,682
995,548 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 993,343
1,630,563 PICAROS FUNDING LLC++ 2.60 05/06/2008 1,629,974
682,958 PRUDENTIAL PLC++ 2.88 05/28/2008 681,488
2,731,833 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 2,731,613
1,394,942 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 1,392,756
1,365,916 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 1,363,429
478,071 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 477,854
853,698 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 852,346
682,958 SLM CORPORATION+++/- 2.73 05/12/2008 682,606
3,551,383 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 3,549,992
1,058,585 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 943,835
1,707,395 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 1,522,314
682,958 SWEDBANK MORTGAGE AB 2.95 05/27/2008 681,508
1,195,177 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 1,194,420
1,557,076 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 1,555,260
853,698 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 851,724
5,122,186 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 5,119,443
853,698 UNICREDITO ITALIANO BANK (IRELAND)+++/- 2.74 10/14/2008 853,168
853,698 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 853,242
1,468,360 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 1,309,190
853,698 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 761,157
1,707,395 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 1,565,682
2,390,354 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 2,389,585
121,917,980
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $131,111,695) 129,534,960
------------
28 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
COMMON STOCK FUND
SHARES SECURITY NAME INTEREST RATE MATURITY DATE VALUE
----------- ---------------------------------------------------------------- ------------- ------------- --------------
SHORT-TERM INVESTMENTS: 11.24%
113,948,622 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## $ 113,948,622
--------------
US TREASURY BILLS: 0.29%
3,000,000 US TREASURY BILL<<@ 1.30% 07/03/2008 2,993,385
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $116,941,797) 116,942,007
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $1,031,022,953)* 112.43% $1,169,269,719
OTHER ASSETS AND LIABILITIES, NET (12.43) (129,312,217)
------ --------------
TOTAL NET ASSETS 100.00% $1,039,957,502
------ --------------
----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
(J) The holder of an exchangeable equity-linked note will receive, at the
note's maturity, shares of the referenced equity based on the final index
value of the equity (orthe cash equivalent). The index value and maturity
date are both defined in the terms of the note.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ This Wells Fargo Advantage Fund invests cash balances that it retains for
liquidity purposes in a Wells Fargo Advantage Money Market Fund. The fund
does not pay an investment advisory fee for such investments.
## Security of an affiliate of the fund with a cost of $113,948,622.
@ Zero coupon bond. Interest rate presented is yield to maturity.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 29
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 94.24%
AMUSEMENT & RECREATION SERVICES: 1.21%
49,700 WMS INDUSTRIES INCORPORATED+<< $ 1,798,643
-----------
APPAREL & ACCESSORY STORES: 2.13%
31,800 GUESS? INCORPORATED 1,217,304
45,900 PHILLIPS-VAN HEUSEN CORPORATION 1,937,439
3,154,743
-----------
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS: 0.97%
41,400 ADVANCE AUTO PARTS INCORPORATED 1,435,752
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 1.69%
76,039 WRIGHT EXPRESS CORPORATION+<< 2,509,287
-----------
BIOPHARMACEUTICALS: 1.53%
14,300 CELGENE CORPORATION+ 888,602
19,500 GENZYME CORPORATION+ 1,371,825
2,260,427
-----------
BUSINESS SERVICES: 11.57%
20,600 ALLIANCE DATA SYSTEMS CORPORATION+<< 1,182,646
54,800 AUTODESK INCORPORATED+ 2,082,400
79,300 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CLASS A+ 2,557,425
69,358 DEALERTRACK HOLDINGS INCORPORATED+<< 1,334,448
83,300 GARTNER INCORPORATED+ 1,909,236
20,700 LAMAR ADVERTISING COMPANY CLASS A+<< 818,478
256,400 LAWSON SOFTWARE INCORPORATED+<< 2,048,636
34,000 MONSTER WORLDWIDE INCORPORATED+ 827,220
144,777 TELETECH HOLDINGS INCORPORATED+ 3,319,737
53,598 VALUECLICK INCORPORATED+<< 1,069,280
17,149,506
-----------
CASINO & GAMING: 1.35%
10,354 MGM MIRAGE+<< 529,607
34,500 PENN NATIONAL GAMING INCORPORATED+ 1,473,840
2,003,447
-----------
CHEMICALS & ALLIED PRODUCTS: 8.14%
22,800 BARR PHARMACEUTICALS INCORPORATED+ 1,145,244
30,200 BIOMARIN PHARMACEUTICAL INCORPORATED+<< 1,101,092
50,800 ECOLAB INCORPORATED 2,334,768
58,700 FOREST LABORATORIES INCORPORATED+ 2,037,477
29,700 IMCLONE SYSTEMS INCORPORATED+ 1,385,505
38,300 INVERNESS MEDICAL INNOVATIONS INCORPORATED+<< 1,417,100
45,500 SHIRE PLC ADR<< 2,499,770
9,000 ZEP INCORPORATED 133,380
12,054,336
-----------
COMMUNICATIONS: 6.72%
10,000 EQUINIX INCORPORATED+<< 904,200
129,074 NII HOLDINGS INCORPORATED+ 5,903,845
54,200 SAVVIS INCORPORATED+<< 794,030
72,800 SBA COMMUNICATIONS CORPORATION CLASS A+ 2,354,352
9,956,427
-----------
30 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
E-COMMERCE/SERVICES: 0.87%
10,100 PRICELINE.COM INCORPORATED+<< $ 1,289,164
-----------
EDUCATIONAL SERVICES: 0.89%
25,900 APOLLO GROUP INCORPORATED CLASS A+<< 1,318,310
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 9.54%
19,300 ACUITY BRANDS INCORPORATED 923,312
27,100 DOLBY LABORATORIES INCORPORATED CLASS A+ 1,088,065
84,000 INTERSIL CORPORATION CLASS A 2,244,480
123,058 MICROSEMI CORPORATION+<< 3,014,921
410,100 PMC-SIERRA INCORPORATED+ 3,186,477
21,900 ROCKWELL COLLINS INCORPORATED 1,382,109
37,300 SILICON LABORATORIES INCORPORATED+ 1,259,621
40,000 SOLERA HOLDINGS INCORPORATED+ 1,032,400
14,131,385
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 7.02%
45,678 ADVISORY BOARD COMPANY+<< 2,129,508
28,900 GEN-PROBE INCORPORATED+ 1,628,804
17,800 IHS INCORPORATED+<< 1,175,690
117,169 RESOURCES CONNECTION INCORPORATED+<< 2,367,985
28,300 URS CORPORATION+ 1,141,622
33,300 WATSON WYATT & COMPANY HOLDINGS 1,952,046
10,395,655
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 1.90%
39,400 GAYLORD ENTERTAINMENT COMPANY+<< 1,167,028
33,700 VAIL RESORTS INCORPORATED+<< 1,645,571
2,812,599
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 2.23%
71,312 GARDNER DENVER INCORPORATED+ 3,312,442
-----------
LEGAL SERVICES: 1.91%
44,328 FTI CONSULTING INCORPORATED+<< 2,836,992
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 7.95%
14,700 BECKMAN COULTER INCORPORATED 1,004,010
15,800 C.R. BARD INCORPORATED 1,487,886
28,700 DENTSPLY INTERNATIONAL INCORPORATED 1,115,569
14,400 DRS TECHNOLOGIES INCORPORATED 899,136
85,160 HOLOGIC INCORPORATED+<< 2,485,820
19,300 METTLER-TOLEDO INTERNATIONAL INCORPORATED+ 1,838,518
46,900 PERKINELMER INCORPORATED 1,245,664
33,378 VARIAN INCORPORATED+ 1,699,942
11,776,545
-----------
MEDICAL EQUIPMENT & SUPPLIES: 0.93%
29,400 VARIAN MEDICAL SYSTEMS INCORPORATED+<< 1,378,272
-----------
MEDICAL PRODUCTS: 1.06%
21,100 ZIMMER HOLDINGS INCORPORATED+ 1,564,776
-----------
MOTION PICTURES: 1.28%
98,900 NATIONAL CINEMEDIA INCORPORATED<< 1,894,924
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 31
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
OIL & GAS EXTRACTION: 5.34%
46,500 HELMERICH & PAYNE INCORPORATED<< $ 2,499,375
29,100 NOBLE CORPORATION 1,637,748
45,900 PETROHAWK ENERGY CORPORATION+ 1,085,076
40,550 RANGE RESOURCES CORPORATION 2,691,709
7,913,908
------------
PERSONAL SERVICES: 1.09%
35,200 WEIGHT WATCHERS INTERNATIONAL INCORPORATED<< 1,614,272
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 3.56%
154,936 VISTAPRINT LIMITED+<< 5,272,472
------------
REAL ESTATE: 1.65%
105,930 CB RICHARD ELLIS GROUP INCORPORATED CLASS A+<< 2,449,102
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 1.76%
11,100 INTERCONTINENTAL EXCHANGE INCORPORATED+ 1,722,165
22,600 LAZARD LIMITED<< 884,564
2,606,729
------------
THEATERS & ENTERTAINMENT: 1.39%
108,800 REGAL ENTERTAINMENT GROUP CLASS A<< 2,062,848
------------
TRANSPORTATION EQUIPMENT: 6.78%
52,600 ITT CORPORATION 3,366,400
26,300 OSHKOSH TRUCK CORPORATION 1,067,780
21,900 POLARIS INDUSTRIES INCORPORATED 1,019,445
75,200 TEXTRON INCORPORATED 4,587,952
10,041,577
------------
TRAVEL & RECREATION: 0.60%
35,200 EXPEDIA INCORPORATED+ 889,152
------------
WHOLESALE TRADE-DURABLE GOODS: 1.18%
51,000 PATTERSON COMPANIES INCORPORATED+ 1,744,200
TOTAL COMMON STOCKS (COST $138,231,810) 139,627,892
------------
COLLATERAL FOR SECURITIES LENDING: 27.84%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 1.64%
348,338 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 348,338
425,978 BLACKROCKTEMP B #24 MONEY MARKET FUND 425,978
902,648 DAILY ASSETS FUND INSTITUTIONAL 902,648
748,857 DREYFUS CASH MANAGEMENT FUND 748,857
2,425,821
------------
PRINCIPAL INTEREST RATE MATURITY DATE
---------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 26.20%
$402,385 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 402,199
138,605 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 138,391
435,011 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 434,239
326,258 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 326,155
257,744 APRECO LLC++ 2.94 05/28/2008 257,181
912,435 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 912,435
32 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 217,505 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87% 05/13/2008 $ 217,297
271,882 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 271,638
744,228 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $744,269) 2.00 05/01/2008 744,228
829,979 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $830,036) 2.47 05/01/2008 829,979
271,882 BANK OF IRELAND+++/- 3.06 10/14/2008 271,740
435,011 BANK OF SCOTLAND PLC 2.80 05/29/2008 434,067
2,919,282 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $2,919,444) 2.00 05/01/2008 2,919,282
217,505 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 217,053
223,432 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 222,938
217,505 CHARIOT FUNDING LLC++ 2.70 05/14/2008 217,293
217,505 CHARIOT FUNDING LLC++ 2.76 05/29/2008 217,040
576,869 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 415,345
443,658 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 319,434
138,605 CIESCO LLC++ 2.90 05/21/2008 138,394
320,821 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 320,006
1,088,615 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 1,088,615
815,645 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 813,819
2,919,282 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,919,444) 2.00 05/01/2008 2,919,282
435,011 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 434,262
763,444 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 763,198
217,505 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 217,325
217,505 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 217,057
1,087,527 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 1,083,500
870,022 GALLEON CAPITAL LLC++ 2.90 05/21/2008 868,620
901,560 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 901,197
1,087,527 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 1,085,983
706,893 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79 10/16/2008 706,893
489,387 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 489,093
784,586 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 784,281
543,764 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 543,764
543,764 LINKS FINANCE LLC+++/- 2.52 08/15/2008 540,932
870,022 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT -
102% COLLATERALIZED (MATURITY VALUE $870,080) 2.40 05/01/2008 870,022
228,848 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 228,581
217,505 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 217,050
50,298 MORGAN STANLEY+/- 2.84 10/15/2008 50,258
493,030 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $493,057) 2.00 05/01/2008 493,030
995,087 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $995,154) 2.41 05/01/2008 995,087
435,011 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 434,490
543,764 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 540,859
500,263 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 500,224
317,058 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 316,355
519,294 PICAROS FUNDING LLC++ 2.60 05/06/2008 519,107
Wells Fargo Advantage Small and Mid Cap Stock Funds 33
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 217,505 PRUDENTIAL PLC++ 2.88% 05/28/2008 $ 217,037
870,022 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 869,952
444,255 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 443,559
435,011 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 434,219
152,254 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 152,185
271,882 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 271,451
217,505 SLM CORPORATION+++/- 2.73 05/12/2008 217,393
1,131,028 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 1,130,585
337,133 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 300,588
543,764 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 484,820
217,505 SWEDBANK MORTGAGE AB 2.95 05/27/2008 217,044
380,635 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 380,393
495,891 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 495,312
271,882 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 271,253
1,631,291 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 1,630,417
271,882 UNICREDITO ITALIANO BANK (IRELAND)+++/- 2.74 10/14/2008 271,713
271,882 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 271,737
467,637 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 416,945
271,882 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 242,410
543,764 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 498,631
761,269 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 761,027
38,827,889
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $41,728,496) 41,253,710
------------
SHARES
----------
RIGHTS: 0.00%
31,200 SEAGATE TECHNOLOGY RIGHTS+(A)(I) 0
TOTAL RIGHTS (COST $0) 0
------------
SHORT-TERM INVESTMENTS: 5.39%
7,977,326 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 7,977,326
------------
TOTAL SHORT-TERM INVESTMENTS (COST $7,977,326) 7,977,326
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $187,937,632)* 127.47% $188,858,928
OTHER ASSETS AND LIABILITIES, NET (27.47) (40,698,206)
------ ------------
TOTAL NET ASSETS 100.00% $148,160,722
------ ------------
34 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
MID CAP GROWTH FUND
----------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ This Wells Fargo Advantage Fund invests cash balances that it retains for
liquidity purposes in a Wells Fargo Advantage Money Market Fund. The Fund
does not pay an investment advisory fee for such investments.
## Security of an affiliate of the fund with a cost of $7,977,326.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 35
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ------------------------------------------------------------------------------------------------ ------------
COMMON STOCKS: 95.87%
AMUSEMENT & RECREATION SERVICES: 1.19%
133,200 WMS INDUSTRIES INCORPORATED+<< $ 4,820,508
------------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 1.69%
207,513 WRIGHT EXPRESS CORPORATION+<< 6,847,929
------------
BIOPHARMACEUTICALS: 0.59%
179,026 APPLERA CORPORATION-CELERA GROUP+<< 2,395,368
------------
BUSINESS SERVICES: 21.76%
45,788 BANKRATE INCORPORATED+<< 2,391,965
187,045 DEALERTRACK HOLDINGS INCORPORATED+<< 3,598,746
94,800 DIGITAL RIVER INCORPORATED+<< 3,114,180
224,100 EPICOR SOFTWARE CORPORATION+ 1,792,800
135,700 FORRESTER RESEARCH INCORPORATED+<< 3,913,588
221,000 GARTNER INCORPORATED+<< 5,065,320
609,480 GLOBAL CASH ACCESS INCORPORATED+<< 3,766,586
349,563 INTERNAP NETWORK SERVICES+<< 1,681,398
637,400 LAWSON SOFTWARE INCORPORATED+<< 5,092,826
484,781 MARCHEX INCORPORATED CLASS B<< 5,007,788
854,819 ON ASSIGNMENT INCORPORATED+<< 6,009,378
231,400 RSC HOLDINGS INCORPORATED+<< 2,138,136
539,558 SECURE COMPUTING CORPORATION+<< 3,571,874
179,651 SI INTERNATIONAL INCORPORATED+ 4,121,194
1,127,765 SKILLSOFT PLC ADR+ 11,334,038
506,147 SYKES ENTERPRISES INCORPORATED+<< 8,412,163
124,200 SYNCHRONOSS TECHNOLOGIES INCORPORATED+<< 2,592,054
378,736 TELETECH HOLDINGS INCORPORATED+ 8,684,416
250,409 THE KNOT INCORPORATED+<< 2,939,802
140,267 VALUECLICK INCORPORATED+ 2,798,327
88,026,579
------------
CASINO & GAMING: 0.63%
165,200 PINNACLE ENTERTAINMENT INCORPORATED+<< 2,563,904
------------
CHEMICALS & ALLIED PRODUCTS: 3.40%
85,150 INVERNESS MEDICAL INNOVATIONS INCORPORATED+<< 3,150,550
151,500 NOVEN PHARMACEUTICALS INCORPORATED+ 1,378,650
479,393 SCIELE PHARMA INCORPORATED+<< 9,237,903
13,767,103
------------
COMMUNICATIONS: 4.54%
81,200 CBEYOND INCORPORATED+<< 1,602,888
562,500 CENTENNIAL COMMUNICATIONS CORPORATION+ 3,408,750
183,800 LIVE NATION INCORPORATED+<< 2,534,602
251,007 LODGENET ENTERTAINMENT CORPORATION+<< 1,536,163
353,827 NOVATEL WIRELESS INCORPORATED+<< 3,156,137
609,400 PAETEC HOLDING CORPORATION+<< 4,698,474
98,200 SAVVIS INCORPORATED+<< 1,438,630
18,375,644
------------
E-COMMERCE/SERVICES: 1.67%
486,100 GSI COMMERCE INCORPORATED+<< 6,766,512
------------
EATING & DRINKING PLACES: 0.36%
124,900 TEXAS ROADHOUSE INCORPORATED CLASS A+<< 1,473,820
------------
36 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ------------------------------------------------------------------------------------------------ ------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT: 11.62%
51,900 ACUITY BRANDS INCORPORATED $ 2,482,896
399,400 INFORMATION SERVICES GROUP INCORPORATED+<< 2,068,892
327,714 MICROSEMI CORPORATION+<< 8,028,993
1,092,300 PMC-SIERRA INCORPORATED+ 8,487,171
105,200 POLYPORE INTERNATIONAL INCORPORATED+ 2,462,732
133,042 POWER INTEGRATIONS INCORPORATED+ 4,146,919
74,100 REGAL-BELOIT CORPORATION 2,748,369
99,500 SILICON LABORATORIES INCORPORATED+ 3,360,115
270,390 SOLERA HOLDINGS INCORPORATED+ 6,978,766
95,409 SYNAPTICS INCORPORATED+<< 3,238,181
98,229 UNIVERSAL DISPLAY CORPORATION+<< 1,452,807
57,900 ZOLTEK COMPANIES INCORPORATED+<< 1,544,193
47,000,034
------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 6.47%
122,888 ADVISORY BOARD COMPANY+ 5,729,039
354,194 EXELIXIS INCORPORATED+ 2,695,416
35,600 IHS INCORPORATED+<< 2,351,380
46,936 NAVIGANT CONSULTING INCORPORATED+ 944,352
456,472 RESOURCES CONNECTION INCORPORATED+<< 9,225,299
88,900 WATSON WYATT & COMPANY HOLDINGS 5,211,318
26,156,804
------------
FINANCIAL INSTITUTIONS: 0.62%
116,200 DOLLAR FINANCIAL CORPORATION+<< 2,507,596
------------
FOOD & KINDRED PRODUCTS: 0.46%
308,020 SENOMYX INCORPORATED+<< 1,848,120
------------
HEALTH SERVICES: 3.03%
66,600 CARDIONET INCORPORATED+ 1,538,460
360,068 INVENTIV HEALTH INCORPORATED+<< 10,704,822
12,243,282
------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES: 0.54%
211,900 HHGREGG INCORPORATED+<< 2,176,213
------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 2.36%
105,468 GAYLORD ENTERTAINMENT COMPANY+<< 3,123,962
553,700 GREAT WOLF RESORTS INCORPORATED+<< 3,383,107
62,300 VAIL RESORTS INCORPORATED+<< 3,042,109
9,549,178
------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 4.77%
200,390 ACTUANT CORPORATION CLASS A<< 6,787,209
189,884 GARDNER DENVER INCORPORATED+ 8,820,112
70,800 KAYDON CORPORATION<< 3,707,796
19,315,117
------------
INSURANCE AGENTS, BROKERS & SERVICE: 0.71%
106,502 EHEALTH INCORPORATED+<< 2,880,879
------------
INSURANCE CARRIERS: 2.27%
194,700 FIRST MERCURY FINANCIAL CORPORATION+ 3,076,260
49,837 THE NAVIGATORS GROUP INCORPORATED+ 2,442,013
155,450 TOWER GROUP INCORPORATED 3,651,521
9,169,794
------------
WELLS FARGO ADVANTAGE SMALL AND MID CAP STOCK FUNDS 37
PORTFOLIO OF INVESTMENTS--APRIL 30, 2008 (UNAUDITED)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ------------------------------------------------------------------------------------------------ ------------
LEGAL SERVICES: 1.36%
85,981 FTI CONSULTING INCORPORATED+<< $ 5,502,784
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL & OPTICAL GOODS: 9.34%
39,300 DRS TECHNOLOGIES INCORPORATED 2,453,892
64,900 ESTERLINE TECHNOLOGIES CORPORATION+ 3,612,334
230,200 EV3 INCORPORATED+<< 1,912,962
658,080 IXIA+<< 4,665,787
52,900 MENTOR CORPORATION<< 1,548,383
236,669 SENORX INCORPORATED+ 1,727,684
182,800 SIRONA DENTAL SYSTEMS INCORPORATED+<< 4,893,556
143,793 SONOSITE INCORPORATED+<< 4,585,559
344,955 SPECTRANETICS CORPORATION+ 3,711,716
288,967 SYMMETRY MEDICAL INCORPORATED+ 4,054,207
90,970 VARIAN INCORPORATED+ 4,633,102
37,799,182
------------
MEDICAL EQUIPMENT & SUPPLIES: 0.76%
185,362 PSS WORLD MEDICAL INCORPORATED+<< 3,052,912
------------
MEDICAL PRODUCTS: 0.92%
313,250 VOLCANO CORPORATION+ 3,705,748
------------
MOTION PICTURES: 1.77%
260,960 CINEMARK HOLDINGS INCORPORATED<< 3,864,818
172,600 NATIONAL CINEMEDIA INCORPORATED<< 3,307,016
7,171,834
------------
OIL & GAS EXTRACTION: 2.10%
136,800 CONCHO RESOURCES INCORPORATED+ 3,771,576
73,200 GOODRICH PETROLEUM CORPORATION+<< 2,472,696
94,830 PETROHAWK ENERGY CORPORATION+<< 2,241,781
8,486,053
------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 6.08%
389,431 INNERWORKINGS INCORPORATED+<< 5,233,953
373,518 SHUTTERFLY INCORPORATED+<< 6,107,019
389,337 VISTAPRINT LIMITED+<< 13,249,138
24,590,110
------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 1.37%
138,324 EVERCORE PARTNERS INCORPORATED CLASS A<< 2,332,143
77,725 FCSTONE GROUP INCORPORATED+<< 3,219,370
5,551,513
------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 0.31%
56,900 APOGEE ENTERPRISES INCORPORATED 1,269,439
------------
TEXTILE MILL PRODUCTS: 0.71%
223,900 INTERFACE INCORPORATED 2,874,876
------------
TRANSPORTATION EQUIPMENT: 0.69%
59,800 POLARIS INDUSTRIES INCORPORATED<< 2,783,690
------------
TRANSPORTATION SERVICES: 0.90%
68,900 HUB GROUP INCORPORATED CLASS A+ 2,252,341
174,200 ORBITZ WORLDWIDE INCORPORATED+<< 1,384,890
3,637,231
------------
38 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ------------------------------------------------------------------------------------------------ ------------
WHOLESALE TRADE-DURABLE GOODS: 0.88%
184,466 INTERLINE BRANDS INCORPORATED+ $ 3,569,415
------------
TOTAL COMMON STOCKS (COST $425,336,697) 387,879,171
------------
COLLATERAL FOR SECURITIES LENDING: 39.85%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 2.34%
1,361,186 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,361,186
1,664,575 BLACKROCKTEMP B #24 MONEY MARKET FUND 1,664,575
3,527,236 DAILY ASSETS FUND INSTITUTIONAL 3,527,236
2,926,277 DREYFUS CASH MANAGEMENT FUND 2,926,277
9,479,274
------------
PRINCIPAL INTEREST RATE MATURITY DATE
---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS: 37.51%
$1,572,382 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 1,571,654
541,622 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 540,784
1,699,873 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 1,696,858
1,274,904 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 1,274,501
1,007,175 APRECO LLC++ 2.94 05/28/2008 1,004,974
3,565,483 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 3,565,483
849,936 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 849,123
1,062,420 BANCO SANTANDER TOTTA 2.73 10/15/2008 1,061,467
2,908,185 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,908,347) 2.00 05/01/2008 2,908,185
3,243,272 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $3,243,495) 2.47 05/01/2008 3,243,272
1,062,420 BANK OF IRELAND ++ +/- 3.06 10/14/2008 1,061,868
1,699,873 BANK OF SCOTLAND PLC 2.80 05/29/2008 1,696,184
11,407,547 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY
VALUE $11,408,181) 2.00 05/01/2008 11,407,547
849,936 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 848,168
873,097 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 871,165
849,936 CHARIOT FUNDING LLC++ 2.70 05/14/2008 849,108
849,936 CHARIOT FUNDING LLC++ 2.76 05/29/2008 848,118
2,254,203 CHEYNE FINANCE LLC++ +/-(A)(I)@@ 6.40 02/25/2008 1,623,026
1,733,664 CHEYNE FINANCE LLC++ +/-(A)(I)@@ 6.48 05/19/2008 1,248,238
541,622 CIESCO LLC++ 2.90 05/21/2008 540,794
1,253,656 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 1,250,475
4,253,931 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 4,253,931
3,187,261 CULLINAN FINANCE++ +/- 2.51 08/04/2008 3,180,125
11,407,547 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $11,408,181) 2.00 05/01/2008 11,407,547
1,699,873 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 1,696,947
2,983,276 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 2,982,315
849,936 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 849,233
849,936 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 848,183
4,249,681 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 4,233,945
3,399,745 GALLEON CAPITAL LLC++ 2.90 05/21/2008 3,394,268
3,522,986 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 3,521,567
4,249,681 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 4,243,647
Wells Fargo Advantage Small and Mid Cap Stock Funds 39
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
---------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS: 37.51%
$2,762,293 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(I) 2.79% 10/16/2008 $ 2,762,293
1,912,357 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 1,911,205
3,065,890 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 3,064,698
2,124,841 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 2,124,841
2,124,841 LINKS FINANCE LLC++ +/- 2.52 08/15/2008 2,113,777
3,399,745 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $3,399,972) 2.40 05/01/2008 3,399,745
894,260 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 893,217
849,936 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 848,156
196,548 MORGAN STANLEY+/- 2.84 10/15/2008 196,391
1,926,593 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $1,926,700) 2.00 05/01/2008 1,926,593
3,888,459 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $3,888,719) 2.41 05/01/2008 3,888,459
1,699,873 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 1,697,836
2,124,841 NORTHERN ROCK PLC++ +/- 2.79 10/03/2008 2,113,490
1,954,853 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 1,954,701
1,238,952 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 1,236,208
2,029,223 PICAROS FUNDING LLC++ 2.60 05/06/2008 2,028,490
849,936 PRUDENTIAL PLC++ 2.88 05/28/2008 848,107
3,399,745 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 3,399,471
1,735,995 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 1,733,274
1,699,873 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 1,696,777
594,955 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 594,686
1,062,420 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 1,060,738
849,936 SLM CORPORATION++ +/- 2.73 05/12/2008 849,498
4,419,669 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 4,417,938
1,317,401 STANFIELD VICTORIA FUNDING LLC++ +/-(A)(I)@@ 5.27 04/03/2008 1,174,595
2,124,841 STANFIELD VICTORIA FUNDING LLC++ +/-(A)(I)@@ 5.47 02/15/2008 1,894,508
849,936 SWEDBANK MORTGAGE AB 2.95 05/27/2008 848,132
1,487,389 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 1,486,447
1,937,770 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 1,935,509
1,062,420 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 1,059,964
6,374,522 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 6,371,107
1,062,420 UNICREDITO ITALIANO BANK (IRELAND)++ +/- 2.74 10/14/2008 1,061,762
1,062,420 UNICREDITO ITALIANO BANK (IRELAND) SERIESLIB++ +/- 2.76 10/08/2008 1,061,853
1,827,363 VICTORIA FINANCE LLC++ +/-(A)(I)@@ 2.60 07/28/2008 1,629,277
1,062,420 VICTORIA FINANCE LLC++ +/-(A)(I)@@ 2.84 08/07/2008 947,254
2,124,841 WHITE PINE FINANCE LLC++ +/-(A)(I)@@ 5.43 02/22/2008 1,948,479
2,974,777 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 2,973,825
151,726,001
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $163,013,104) 161,205,275
------------
40 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP GROWTH FUND
SHARES SECURITY NAME VALUE
---------- ------------------------------------------------------------------------------------------------ ------------
WARRANTS: 0.00%
108 IMPERIAL CREDIT INDUSTRY+(A)(I) $ 0
TOTAL WARRANTS (COST $0) 0
------------
SHORT-TERM INVESTMENTS: 4.49%
18,156,795 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 18,156,795
------------
TOTAL SHORT-TERM INVESTMENTS (COST $18,156,795) 18,156,795
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $606,506,596)* 140.21% $567,241,241
OTHER ASSETS AND LIABILITIES, NET (40.21) (162,685,284)
------------
TOTAL NET ASSETS 100.00% $404,555,957
------------
+ Non-income earning securities.
<< All or a portion of this security is on loan.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ This Wells Fargo Advantage Fund invests cash balances that it retains for
liquidity purposes in a Wells Fargo Advantage Money Market Fund. The Fund
does not pay an investment advisory fee for such investments.
## Short-term security of an affiliate of the Fund with a cost of $18,156,795.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 41
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
COMMON STOCKS: 90.29%
APPAREL & ACCESSORY STORES: 1.27%
533,200 CASUAL MALE RETAIL GROUP INCORPORATED<<+ $ 2,303,424
318,500 CHILDREN'S PLACE RETAIL STORES INCORPORATED<<+ 7,405,125
9,708,549
-----------
AUTOMOTIVE REPAIR, SERVICES & PARKING: 0.58%
207,200 STANDARD PARKING CORPORATION<<+ 4,440,296
-----------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS: 0.57%
841,400 CENTRAL GARDEN & PET COMPANY<<+ 4,333,210
-----------
BUSINESS SERVICES: 11.83%
492,500 ASPEN TECHNOLOGY INCORPORATED+ 6,766,950
159,400 BRIGHT HORIZONS FAMILY SOLUTIONS INCORPORATED+ 7,557,154
113,700 CONSTANT CONTACT INCORPORATED<<+ 2,029,545
342,100 F5 NETWORKS INCORPORATED+ 7,741,723
434,200 GARTNER INCORPORATED<<+ 9,951,864
267,250 H&E EQUIPMENT SERVICES INCORPORATED+ 3,503,648
467,100 INFORMATICA CORPORATION<<+ 7,454,916
349,900 INTERWOVEN INCORPORATED+ 3,939,874
433,500 ONLINE RESOURCES CORPORATION<<+ 4,382,685
353,900 PARAMETRIC TECHNOLOGY CORPORATION+ 6,168,477
119,100 RENT-A-CENTER INCORPORATED+ 2,564,223
250,100 RIGHTNOW TECHNOLOGIES INCORPORATED<<+ 2,993,697
683,300 SONICWALL INCORPORATED<<+ 5,254,577
333,900 THQ INCORPORATED<<+ 7,105,392
581,200 VALUECLICK INCORPORATED<<+ 11,594,940
47,700 VIAD CORPORATION 1,500,642
90,510,307
-----------
CASINO & GAMING: 0.49%
242,600 PINNACLE ENTERTAINMENT INCORPORATED<<+ 3,765,152
-----------
CHEMICALS & ALLIED PRODUCTS: 3.48%
47,300 ANIMAL HEALTH INTERNATIONAL INCORPORATED+ 415,767
342,500 CABOT CORPORATION<< 9,987,300
30,100 FMC CORPORATION 1,889,678
330,500 K-V PHARMACEUTICAL COMPANY CLASS A<<+ 8,077,420
152,000 PERRIGO COMPANY 6,230,480
26,600,645
-----------
COMMUNICATIONS: 3.75%
219,500 CBEYOND INCORPORATED<<+ 4,332,930
322,400 CLEAR CHANNEL OUTDOOR HOLDINGS INCORPORATED<<+ 6,132,048
155,200 CONSOLIDATED COMMUNICATIONS ILLINOIS HOLDINGS INCORPORATED 2,219,360
148,500 GEOEYE INCORPORATED+ 3,419,955
174,600 KNOLOGY INCORPORATED<<+ 2,238,372
54,400 MEDIACOM COMMUNICATIONS CORPORATION<<+ 233,376
382,000 PAETEC HOLDING CORPORATION<<+ 2,945,220
322,900 SYNIVERSE HOLDINGS INCORPORATED<<+ 5,072,759
105,600 TIME WARNER TELECOM INCORPORATED<<+ 2,069,760
28,663,780
-----------
COMMUNICATIONS EQUIPMENT: 0.50%
80,200 COMMSCOPE INCORPORATED+ 3,813,510
-----------
42 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
DEPOSITORY INSTITUTIONS: 5.67%
205,900 BANK OF HAWAII CORPORATION $11,289,497
81,100 BERKSHIRE HILLS BANCORP INCORPORATED 2,075,349
81,397 CULLEN FROST BANKERS INCORPORATED 4,543,581
248,410 CVB FINANCIAL CORPORATION<< 2,851,747
512,000 EURONET WORLDWIDE INCORPORATED<<+ 9,052,160
65,200 SVB FINANCIAL GROUP<<+ 3,172,632
177,700 WESTAMERICA BANCORPORATION<< 10,384,788
43,369,754
-----------
EATING & DRINKING PLACES: 0.67%
232,700 SONIC CORPORATION<<+ 5,117,073
-----------
ELECTRIC, GAS & SANITARY SERVICES: 5.14%
91,600 CLEAN HARBORS INCORPORATED<<+ 6,042,852
211,100 NORTHWESTERN CORPORATION 5,239,502
63,400 ORMAT TECHNOLOGIES INCORPORATED<< 3,125,620
164,200 PORTLAND GENERAL ELECTRIC COMPANY 3,940,800
96,400 UIL HOLDINGS CORPORATION 3,017,320
251,400 UNISOURCE ENERGY CORPORATION 7,853,736
314,250 WASTE CONNECTIONS INCORPORATED<<+ 10,077,998
39,297,828
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 5.81%
392,200 ANADIGICS INCORPORATED<<+ 4,376,952
115,700 IPG PHOTONICS CORPORATION<<+ 1,935,661
304,600 MEMSIC INCORPORATED<<+ 2,415,478
157,800 MICROSEMI CORPORATION<<+ 3,866,100
650,500 QLOGIC CORPORATION<<+ 10,381,980
356,700 SEMTECH CORPORATION+ 5,792,808
138,200 STANDARD MICROSYSTEMS CORPORATION<<+ 4,097,630
652,500 VISHAY INTERTECHNOLOGY INCORPORATED+ 6,166,125
359,700 VOLTERRA SEMICONDUCTOR CORPORATION<<+ 5,417,082
44,449,816
-----------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 2.30%
72,900 DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS INCORPORATED 448,335
563,400 LEXICON GENETICS INCORPORATED+ 1,160,604
155,900 LUMINEX CORPORATION<<+ 3,041,609
320,000 MTC TECHNOLOGIES INCORPORATED+ 7,635,200
90,700 WATSON WYATT & COMPANY HOLDINGS 5,316,834
17,602,582
-----------
FOOD & KINDRED PRODUCTS: 0.71%
63,100 FLOWERS FOODS INCORPORATED<< 1,633,659
190,700 UNITED NATURAL FOODS INCORPORATED<<+ 3,775,860
5,409,519
-----------
HEALTH SERVICES: 3.15%
152,300 AMSURG CORPORATION+ 3,889,742
102,900 ATHENAHEALTH INCORPORATED<<+ 2,572,500
118,400 DIALYSIS CORPORATION OF AMERICA+ 905,760
10,600 ENSIGN GROUP INCORPORATED 101,866
130,800 PSYCHIATRIC SOLUTIONS INCORPORATED<<+ 4,540,068
194,100 SIRTRIS PHARMACEUTICALS INCORPORATED<<+ 4,338,135
342,400 SKILLED HEALTHCARE GROUP INCORPORATED+ 4,143,040
274,800 SUN HEALTHCARE GROUP INCORPORATED+ 3,613,620
24,104,731
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 43
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
HOLDING & OTHER INVESTMENT OFFICES: 2.28%
221,250 ANNALY MORTGAGE MANAGEMENT INCORPORATED $ 3,708,150
170,900 DIGITAL REALITY TRUST INCORPORATED<< 6,622,375
223,600 INVESTORS REAL ESTATE TRUST<< 2,280,720
212,000 NATIONAL RETAIL PROPERTIES INCORPORATED<< 4,856,920
17,468,165
-----------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 0.55%
188,000 HOME INNS & HOTELS MANAGEMENT ADR<<+ 4,213,080
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 8.04%
196,800 ACTUANT CORPORATION CLASS A<< 6,665,616
435,900 DRESSER-RAND GROUP INCORPORATED+ 15,940,863
676,400 EMULEX CORPORATION+ 8,854,076
163,000 IDEX CORPORATION 5,980,470
61,800 MANITOWOC COMPANY INCORPORATED 2,337,276
546,400 SCIENTIFIC GAMES CORPORATION CLASS A<<+ 15,386,624
212,529 SHAW INDUSTRIES LIMITED CLASS A 6,330,920
61,495,845
-----------
INSURANCE CARRIERS: 3.62%
237,092 ARGO GROUP INTERNATIONAL HOLDINGS LIMITED+ 8,492,635
537,100 CONSECO INCORPORATED<<+ 6,257,215
249,800 REINSURANCE GROUP OF AMERICA INCORPORATED 12,984,604
27,734,454
-----------
JUSTICE, PUBLIC ORDER & SAFETY: 1.36%
394,100 GEO GROUP INCORPORATED<<+ 10,423,945
-----------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC,
MEDICAL & OPTICAL GOODS: 7.93%
176,500 ADVANCED MEDICAL OPTICS INCORPORATED<<+ 3,706,500
698,600 BRUKER BIOSCIENCES CORPORATION<<+ 8,467,032
196,400 CEPHEID INCORPORATED<<+ 3,843,548
249,800 COOPER COMPANIES INCORPORATED<< 8,743,000
68,600 DRS TECHNOLOGIES INCORPORATED<< 4,283,384
144,400 ESCO TECHNOLOGIES INCORPORATED<<+ 6,723,264
422,500 FEI COMPANY<<+ 9,240,075
106,900 HAEMONETICS CORPORATION+ 6,117,887
42,600 INTEGRA LIFESCIENCES HOLDINGS<<+ 1,804,962
58,700 ROFIN-SINAR TECHNOLOGIES INCORPORATED+ 2,235,296
292,200 VEECO INSTRUMENTS INCORPORATED<<+ 5,502,126
60,667,074
-----------
MEDICAL EQUIPMENT & SUPPLIES: 1.07%
498,300 PSS WORLD MEDICAL INCORPORATED<<+ 8,207,001
-----------
MEDICAL PRODUCTS: 0.26%
166,600 VOLCANO CORPORATION+ 1,970,878
-----------
METAL MINING: 1.04%
155,700 PAN AMERICAN SILVER CORPORATION<<+ 5,215,950
215,678 YAMANA GOLD INCORPORATED 2,764,986
7,980,936
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 0.17%
265,800 CENTRAL GARDEN & PET COMPANY CLASS A+ 1,334,316
-----------
44 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
NON-DEPOSITORY CREDIT INSTITUTIONS: 0.25%
117,829 APOLLO INVESTMENT CORPORATION<< $ 1,906,473
-----------
OIL & GAS EXPLORATION: 0.90%
326,400 PARALLEL PETROLEUM CORPORATION+ 6,916,416
-----------
OIL & GAS EXTRACTION: 5.03%
67,200 APPROACH RESOURCES INCORPORATED+ 1,273,440
125,400 CONCHO RESOURCES INCORPORATED+ 3,457,278
643,096 GALLEON ENERGY INCORPORATED A+ 11,321,708
176,100 GOODRICH PETROLEUM CORPORATION<<+ 5,948,658
376,300 ST. MARY LAND & EXPLORATION COMPANY 16,451,836
38,452,920
-----------
PERSONAL SERVICES: 0.59%
153,900 REGIS CORPORATION 4,493,880
-----------
PRIMARY METAL INDUSTRIES: 1.27%
314,000 BRUSH ENGINEERED MATERIALS INCORPORATED+ 9,737,140
-----------
RAILROAD TRANSPORTATION: 0.55%
93,700 KANSAS CITY SOUTHERN<<+ 4,223,996
-----------
REAL ESTATE: 0.55%
302,400 CHIMERA INVESTMENT CORPORATION 4,194,288
-----------
REAL ESTATE INVESTMENT TRUSTS (REITS): 0.59%
92,711 HEALTH CARE REIT INCORPORATED 4,491,848
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS: 0.91%
148,900 WEST PHARMACEUTICAL SERVICES INCORPORATED 6,984,899
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES: 0.27%
42,500 INVESTMENT TECHNOLOGY GROUP INCORPORATED+ 2,051,050
-----------
SOFTWARE: 0.70%
111,900 MANTECH INTERNATIONAL CORPORATION CLASS A<<+ 5,345,463
-----------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 1.41%
227,000 CARBO CERAMICS INCORPORATED 10,789,310
-----------
TEXTILE MILL PRODUCTS: 0.66%
97,000 ALBANY INTERNATIONAL CORPORATION CLASS A 3,521,100
119,400 INTERFACE INCORPORATED 1,533,096
5,054,196
-----------
TRANSPORTATION BY AIR: 0.39%
175,100 REPUBLIC AIRWAYS HOLDINGS INCORPORATED+ 2,952,186
-----------
TRANSPORTATION SERVICES: 1.08%
424,500 AMBASSADORS GROUP INCORPORATED<< 8,260,770
-----------
WATER TRANSPORTATION: 1.17%
218,000 HORIZON LINES INCORPORATED<< 2,299,900
249,900 SEASPAN CORPORATION<< 6,642,342
8,942,242
-----------
WHOLESALE TRADE NON-DURABLE GOODS: 0.96%
153,300 AIRGAS INCORPORATED 7,378,329
-----------
Wells Fargo Advantage Small and Mid Cap Stock Funds 45
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
---------- ---------------------------------------------------------------- ------------
WHOLESALE TRADE-DURABLE GOODS: 0.77%
271,800 LKQ CORPORATION<<+ $ 5,914,367
------------
TOTAL COMMON STOCKS (COST $649,530,248) 690,772,219
------------
COLLATERAL FOR SECURITIES LENDING: 30.00%
COLLATERAL INVESTED IN MONEY MARKET FUNDS: 1.76%
1,938,059 AIM SHORT-TERM INVESTMENT COMPANY - LIQUID ASSETS PORTFOLIO 1,938,059
2,370,024 BLACKROCKTEMP B #24 MONEY MARKET FUND 2,370,024
5,022,084 DAILY ASSETS FUND INSTITUTIONAL 5,022,084
4,166,438 DREYFUS CASH MANAGEMENT FUND 4,166,438
13,496,605
------------
PRINCIPAL INTEREST RATE MATURITY DATE
----------- ------------- -------------
COLLATERAL INVESTED IN OTHER ASSETS: 28.24%
$ 2,238,760 ALPINE SECURITIZATION CORPORATION++ 2.78% 05/07/2008 2,237,723
771,162 AMSTEL FUNDING CORPORATION 2.93 05/20/2008 769,970
2,420,281 AMSTEL FUNDING CORPORATION++ 3.05 05/22/2008 2,415,989
1,815,211 AMSTERDAM FUNDING CORPORATION++ 2.85 05/05/2008 1,814,636
1,434,017 APRECO LLC++ 2.94 05/28/2008 1,430,884
5,076,540 ASPEN FUNDING CORPORATION++ 3.05 05/01/2008 5,076,540
1,210,141 ATLANTIC ASSET SECURITIZATION CORPORATION 2.87 05/13/2008 1,208,983
1,512,676 BANCO SANTANDER TOTTA LOAN+++/- 2.73 10/15/2008 1,511,319
4,140,678 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $4,140,908) 2.00 05/01/2008 4,140,678
4,617,776 BANK OF AMERICA REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $4,618,093) 2.47 05/01/2008 4,617,776
1,512,676 BANK OF IRELAND+++/- 3.06 10/14/2008 1,511,889
2,420,281 BANK OF SCOTLAND PLC 2.80 05/29/2008 2,415,029
16,242,085 BARCLAYS REPURCHASE AGREEMENT - 102% COLLATERALIZED (MATURITY 2.00 05/01/2008 16,242,085
VALUE $16,242,987)
1,210,141 BRYANT BANK FUNDING LLC++ 2.89 05/27/2008 1,207,624
1,243,117 CANCARA ASSET SECURITIZATION LIMITED++ 2.96 05/28/2008 1,240,367
1,210,141 CHARIOT FUNDING LLC++ 2.70 05/14/2008 1,208,961
1,210,141 CHARIOT FUNDING LLC++ 2.76 05/29/2008 1,207,552
3,209,539 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.40 02/25/2008 2,310,868
2,468,393 CHEYNE FINANCE LLC+++/-(A)(I)@@ 6.48 05/19/2008 1,777,243
771,162 CIESCO LLC++ 2.90 05/21/2008 769,984
1,784,958 CITIBANK OMNI MASTER TRUST++ 3.16 05/30/2008 1,780,428
6,056,754 CLIPPER RECEIVABLES CORPORATION 3.02 05/01/2008 6,056,754
4,538,028 CULLINAN FINANCE CORPORATION+++/- 2.51 08/04/2008 4,527,867
16,242,085 DEUTSCHE BANK REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $16,242,987) 2.00 05/01/2008 16,242,085
2,420,281 ERASMUS CAPITAL CORPORATION++ 2.96 05/22/2008 2,416,116
4,247,594 FAIRWAY FINANCE CORPORATION++ 2.90 05/05/2008 4,246,225
1,210,141 FALCON ASSET SECURITIZATION CORPORATION++ 2.71 05/12/2008 1,209,139
1,210,141 FALCON ASSET SECURITIZATION CORPORATION++ 2.76 05/28/2008 1,207,645
6,050,703 FIVE FINANCE INCORPORATED+++/- 2.66 07/09/2008 6,028,298
4,840,563 GALLEON CAPITAL LLC++ 2.90 05/21/2008 4,832,764
5,016,033 GEMINI SECURITIZATION INCORPORATED++ 2.90 05/06/2008 5,014,013
6,050,703 GRAMPIAN FUNDING LIMITED++ 2.84 05/19/2008 6,042,111
46 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
----------- ---------------------------------------------------------------- ------------- ------------- ------------
COLLATERAL INVESTED IN OTHER ASSETS (continued)
$ 3,932,957 ING (USA) ANNUITY & LIFE INSURANCE COMPANY+/-(i) 2.79% 10/16/2008 $ 3,932,957
2,722,817 JUPITER SECURITIZATION CORPORATION++ 2.71 05/09/2008 2,721,177
4,365,220 KITTY HAWK FUNDING CORPORATION++ 2.80 05/06/2008 4,363,522
3,025,352 LIBERTY STREET FUNDING CORPORATION++ 2.95 05/01/2008 3,025,352
3,025,352 LINKS FINANCE LLC+++/- 2.52 08/15/2008 3,009,599
4,840,563 MERRILL LYNCH & COMPANY INCORPORATED REPURCHASE AGREEMENT - 102%
COLLATERALIZED (MATURITY VALUE $4,840,886) 2.40 05/01/2008 4,840,563
1,273,250 MONT BLANC CAPITAL CORPORATION++ 2.80 05/16/2008 1,271,764
1,210,141 MONT BLANC CAPITAL CORPORATION++ 2.96 05/27/2008 1,207,606
279,845 MORGAN STANLEY+/- 2.84 10/15/2008 279,622
2,743,086 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $2,743,238) 2.00 05/01/2008 2,743,086
5,536,394 MORGAN STANLEY REPURCHASE AGREEMENT - 102% COLLATERALIZED
(MATURITY VALUE $5,536,765) 2.41 05/01/2008 5,536,394
2,420,281 NIEUW AMSTERDAM RECEIVABLES CORPORATION++ 2.90 05/16/2008 2,417,382
3,025,352 NORTHERN ROCK PLC+++/- 2.79 10/03/2008 3,009,190
2,783,324 OLD LINE FUNDING CORPORATION++ 2.80 05/02/2008 2,783,107
1,764,022 PARK AVENUE RECEIVABLES CORPORATION++ 2.76 05/30/2008 1,760,114
2,889,211 PICAROS FUNDING LLC++ 2.60 05/06/2008 2,888,168
1,210,141 PRUDENTIAL PLC++ 2.88 05/28/2008 1,207,536
4,840,563 RANGER FUNDING CORPORATION++ 2.90 05/02/2008 4,840,173
2,471,712 REGENCY MARKETS #1 LLC++ 2.97 05/20/2008 2,467,838
2,420,281 SCALDIS CAPITAL LIMITED++ 2.99 05/23/2008 2,415,874
847,098 SHEFFIELD RECEIVABLES CORPORATION++ 2.72 05/07/2008 846,714
1,512,676 SHEFFIELD RECEIVABLES CORPORATION++ 2.85 05/21/2008 1,510,281
1,210,141 SLM CORPORATION+++/- 2.73 05/12/2008 1,209,517
6,292,732 SOLITAIRE FUNDING LLC++ 2.82 05/06/2008 6,290,267
1,875,718 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.27 04/03/2008 1,672,390
3,025,352 STANFIELD VICTORIA FUNDING LLC+++/-(A)(I)@@ 5.47 02/15/2008 2,697,404
1,210,141 SWEDBANK MORTGAGE AB 2.95 05/27/2008 1,207,571
2,117,746 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED++ 2.85 05/09/2008 2,116,405
2,759,000 THAMES ASSET GLOBAL SECURITIZATION #1 INCORPORATED 3.00 05/15/2008 2,755,781
1,512,676 TULIP FUNDING CORPORATION++ 2.88 05/30/2008 1,509,179
9,076,055 UBS FINANCE (DELAWARE) LLC 2.76 05/08/2008 9,071,193
1,512,676 UNICREDITO ITALIANO BANK (IRELAND)+++/- 2.74 10/14/2008 1,511,738
1,512,676 UNICREDITO ITALIANO BANK (IRELAND) SERIES LIB+++/- 2.76 10/08/2008 1,511,868
2,601,802 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.60 07/28/2008 2,319,767
1,512,676 VICTORIA FINANCE LLC+++/-(A)(I)@@ 2.84 08/07/2008 1,348,702
3,025,352 WHITE PINE FINANCE LLC+++/-(A)(I)@@ 5.43 02/22/2008 2,774,248
4,235,492 WINDMILL FUNDING CORPORATION++ 2.88 05/05/2008 4,234,136
216,027,730
------------
TOTAL COLLATERAL FOR SECURITIES LENDING (COST $232,386,613) 229,524,335
------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 47
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP OPPORTUNITIES FUND
SHARES SECURITY NAME VALUE
----------- ---------------------------------------------------------------- ------------
SHORT-TERM INVESTMENTS: 9.39%
71,836,415 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## $ 71,836,415
------------
TOTAL SHORT-TERM INVESTMENTS (COST $71,836,415) 71,836,415
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $953,753,276)* 129.68% $992,132,969
OTHER ASSETS AND LIABILITIES, NET (29.68) (227,077,819)
------ ------------
TOTAL NET ASSETS 100.00% $765,055,150
------ ------------
<< All or a portion of this security is on loan.
+ Non-income earning securities.
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
+/- Variable rate investments.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(I) Illiquid security.
@@ This security is currently in default with regards to scheduled interest
and/or principal payments.
~ This Wells Fargo Advantage Fund invests cash balances that it retains for
liquidity purposes in a Wells Fargo Advantage Money Market Fund. The fund
does not pay an investment advisory fee for such investments.
## Short-term security of an affiliate of the Fund with a cost of $71,836,415.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
48 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
------- ----------------------------------------------------------------- --------------
COMMON STOCKS: 91.01%
APPAREL & ACCESSORY STORES: 0.59%
1,710,000 COLLECTIVE BRANDS INCORPORATED+ $ 21,152,700
--------------
BUILDING CONSTRUCTION-GENERAL CONTRACTORS & OPERATIVE BUILDERS: 0.28%
1,192,800 PALM HARBOR HOMES INCORPORATED+** 10,270,008
--------------
BUSINESS SERVICES: 4.51%
17,334,200 3COM CORPORATION+ 41,428,738
2,365,700 ABM INDUSTRIES INCORPORATED 49,537,758
1,008,300 COGNEX CORPORATION# 25,409,160
980,700 DELUXE CORPORATION 20,849,682
116,254 ELECTRONICS FOR IMAGING INCORPORATED+ 1,676,383
711,800 HEALTHCARE SERVICES GROUP 10,862,068
287,400 HIGHLANDS ACQUISITION CORPORATION+ 2,701,560
955,800 KFORCE INCORPORATED+ 7,866,234
47,100 MPS GROUP INCORPORATED+ 505,383
89,700 SRA INTERNATIONAL INCORPORATED CLASS A+# 2,356,419
163,193,385
--------------
CHEMICALS & ALLIED PRODUCTS: 3.20%
697,800 ALPHARMA INCORPORATED CLASS A+ 17,172,858
763,000 CALGON CARBON CORPORATION+ 10,872,750
449,300 OM GROUP INCORPORATED+# 24,603,668
4,996,800 ORASURE TECHNOLOGIES INCORPORATED+** 32,279,328
3,442,100 PRESTIGE BRANDS HOLDINGS INCORPORATED+** 30,910,058
115,838,662
--------------
COMMUNICATIONS: 2.30%
3,124,194 CHINA GRENTECH CORPORATION LIMITED ADR+** 14,777,438
8,357,600 CINCINNATI BELL INCORPORATED+ 38,779,264
11,428,100 CITADEL BROADCASTING CORPORATION+ 15,542,216
341,910 ENTRAVISION COMMUNICATIONS CORPORATION CLASS A+ 2,389,951
1,426,100 MASTEC INCORPORATED+# 11,679,759
83,168,628
--------------
CONSTRUCTION SPECIAL TRADE CONTRACTORS: 3.25%
2,895,300 CHICAGO BRIDGE & IRON COMPANY NV NEW YORK SHARES# 115,348,752
111,200 MATRIX SERVICE COMPANY+ 2,236,232
117,584,984
--------------
DEPOSITORY INSTITUTIONS: 0.20%
886,700 THE COLONIAL BANCGROUP INCORPORATED# 7,217,738
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT: 3.61%
2,339,700 GRAFTECH INTERNATIONAL LIMITED+ 45,975,105
11,120,100 MRV COMMUNICATIONS INCORPORATED+** 17,458,557
1,451,400 OSI SYSTEMS INCORPORATED+** 35,486,730
5,970,300 POWER-ONE INCORPORATED+** 17,851,197
3,317,500 POWERWAVE TECHNOLOGIES+ 9,056,775
493,100 VISHAY INTERTECHNOLOGY INCORPORATED+ 4,659,795
130,488,159
--------------
ENGINEERING, ACCOUNTING, RESEARCH MANAGEMENT & RELATED SERVICES: 0.26%
630,700 INFINITY PHARMACEUTICALS INCORPORATED+ 4,295,067
698,000 SYMYX TECHNOLOGIES INCORPORATED+ 5,241,980
9,537,047
--------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 49
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
------- ----------------------------------------------------------------- --------------
FINANCIAL SERVICES: 0.26%
273,500 KBW REGIONAL BANKING ETF $ 9,520,535
--------------
FOOD & KINDRED PRODUCTS: 1.91%
7,640,400 DEL MONTE FOODS COMPANY 68,916,408
--------------
GENERAL MERCHANDISE STORES: 0.08%
233,100 FOOT LOCKER INCORPORATED 2,948,715
--------------
HEALTH SERVICES: 2.19%
2,517,800 CROSS COUNTRY HEALTHCARE INCORPORATED+** 30,112,888
1,432,100 GENTIVA HEALTH SERVICES INCORPORATED+** 31,133,854
896,600 MDS INCORPORATED+ 17,851,306
79,098,048
--------------
HOLDING & OTHER INVESTMENT OFFICES: 5.84%
4,429,700 ANNALY MORTGAGE MANAGEMENT INCORPORATED# 74,241,772
2,287,600 ANWORTH MORTGAGE ASSET CORPORATION# 15,281,168
2,881,800 CAPSTEAD MORTGAGE CORPORATION#** 37,175,220
737,500 DISCOVERY HOLDING COMPANY CLASS A+ 17,080,500
2,020,150 HILLTOP HOLDINGS INCORPORATED+ 21,332,784
4,585,200 MFA Mortgage Investments Incorporated 32,050,548
716,200 Sun Communities Incorporated 13,930,090
211,092,082
--------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGE PLACES: 0.14%
1,879,800 EMPIRE RESORTS INCORPORATED+** 5,056,662
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT: 3.03%
3,338,600 CRAY INCORPORATED+** 20,799,478
3,462,300 INTERMEC INCORPORATED+** 73,123,776
101,300 SMITH INTERNATIONAL INCORPORATED 7,750,463
1,400,100 VOYAGER LEARNING COMPANY+ 7,840,560
109,514,277
--------------
INSURANCE AGENTS, BROKERS & SERVICE: 0.02%
36,660 ONEBEACON INSURANCE GROUP LIMITED 720,736
--------------
INSURANCE CARRIERS: 2.88%
1,706,900 ARGO GROUP INTERNATIONAL HOLDINGS LIMITED+** 61,141,158
624,400 MERCURY GENERAL CORPORATION 31,151,316
519,700 NYMAGIC INCORPORATED** 11,823,175
104,115,649
--------------
JUSTICE, PUBLIC ORDER & SAFETY: 1.70%
2,324,100 GEO GROUP INCORPORATED+# 61,472,445
--------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE: 2.56%
7,741,200 CHAMPION ENTERPRISES INCORPORATED+#** 79,889,184
461,700 SKYLINE CORPORATION** 12,705,984
92,595,168
--------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS: PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS: 1.95%
311,000 APPLERA CORPORATION-APPLIED BIOSYSTEMS GROUP# 9,924,010
1,045,300 COHERENT INCORPORATED+ 31,149,940
7,274,300 CREDENCE SYSTEMS CORPORATION+** 7,565,272
716,500 ION GEOPHYSICAL CORPORATION+ 11,413,845
745,800 SYMMETRY MEDICAL INCORPORATED+# 10,463,574
70,516,641
--------------
50 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
------- ----------------------------------------------------------------- --------------
METAL MINING: 11.03%
5,174,700 APEX SILVER MINES LIMITED+** $ 52,005,735
3,692,700 GOLDCORP INCORPORATED# 131,903,244
4,163,300 RANDGOLD RESOURCES LIMITED ADR#** 189,513,416
1,977,100 YAMANA GOLD INCORPORATED# 25,346,422
398,768,817
--------------
MISCELLANEOUS MANUFACTURING INDUSTRIES: 0.79%
2,047,700 ACCO BRANDS CORPORATION+ 28,503,984
--------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING: 0.18%
1,110,200 COVENANT TRANSPORT INCORPORATED CLASS A+** 6,361,446
--------------
OIL & GAS EXTRACTION: 26.84%
1,287,100 BOOTS & COOTS INTERNATIONAL CONTROL INCORPORATED+ 2,651,426
936,300 FOREST OIL CORPORATION+# 55,176,159
6,301,400 GLOBAL INDUSTRIES LIMITED+#** 100,570,344
1,219,800 HELIX ENERGY SOLUTIONS GROUP INCORPORATED+# 42,144,090
1,361,800 HELMERICH & PAYNE INCORPORATED# 73,196,750
3,616,700 KEY ENERGY SERVICES INCORPORATED+ 49,548,790
770,500 MARINER ENERGY INCORPORATED+ 21,234,980
3,612,400 MCMORAN EXPLORATION COMPANY+#** 99,052,008
606,600 NEWFIELD EXPLORATION COMPANY+# 36,857,016
8,328,300 NEWPARK RESOURCES INCORPORATED+** 45,722,367
291,100 NOBLE ENERGY INCORPORATED# 25,325,700
760,700 OCEANEERING INTERNATIONAL INCORPORATED+ 50,799,546
1,845,100 PARKER DRILLING COMPANY+ 14,797,702
1,200 PETROHAWK ENERGY CORPORATION+ 28,368
376,000 PETROHAWK ENERGY CORPORATION+ 8,888,640
607,100 PETROQUEST ENERGY INCORPORATED+ 12,615,538
333,900 PIONEER NATURAL RESOURCES COMPANY 19,276,047
695,700 PRIDE INTERNATIONAL INCORPORATED+ 29,532,465
2,609,750 RANGE RESOURCES CORPORATION# 173,235,205
140,200 TRANSOCEAN INCORPORATED+ 20,673,892
2,628,800 TRILOGY ENERGY TRUST 30,540,125
1,632,500 WILLBROS GROUP INCORPORATED+# 58,916,925
970,784,083
--------------
PAPER & ALLIED PRODUCTS: 0.47%
1,114,500 CHESAPEAKE CORPORATION+** 4,881,510
1,583,100 WAUSAU PAPER CORPORATION 12,253,194
17,134,704
--------------
PETROLEUM REFINING & RELATED INDUSTRIES: 2.06%
412,600 ASHLAND INCORPORATED# 21,876,052
2,794,900 INTEROIL CORPORATION+#** 52,795,661
74,671,713
--------------
PRIMARY METAL INDUSTRIES: 4.21%
880,000 CARPENTER TECHNOLOGY CORPORATION# 45,126,400
87,500 ENCORE WIRE CORPORATION# 1,977,500
2,041,600 STEEL DYNAMICS INCORPORATED# 71,149,760
132,000 UNITED STATES STEEL CORPORATION# 20,321,400
100,365 WEBCO INDUSTRIES INCORPORATED+**(A) 13,549,208
152,124,268
--------------
Wells Fargo Advantage Small and Mid Cap Stock Funds 51
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
SHARES SECURITY NAME VALUE
------- ----------------------------------------------------------------- --------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES: 0.83%
1,244,800 MCCLATCHY COMPANY CLASS A $ 13,070,400
3,513,400 R.H. DONNELLEY CORPORATION+#(A)** 16,829,186
29,899,586
--------------
REAL ESTATE: 0.55%
790,400 HATTERAS FINANCIAL CORPORATION+ 19,981,312
--------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS: 0.65%
1,157,940 CONSTAR INTERNATIONAL INCORPORATED+** 3,392,764
8,618,150 INTERTAPE POLYMER GROUP INCORPORATED+** 20,252,653
23,645,417
--------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS: 0.27%
2,920,600 US CONCRETE INCORPORATED+** 9,637,980
--------------
TRANSPORTATION BY AIR: 1.72%
260,400 AIR CANADA CLASS A+ 2,122,812
799,300 ALASKA AIR GROUP INCORPORATED+ 17,168,964
695,100 LAN AIRLINES SA ADR+# 9,196,173
135,402 PHI INCORPORATED+ 4,766,150
773,500 PHI INCORPORATED (NON-VOTING)+** 29,060,393
62,314,492
--------------
TRANSPORTATION EQUIPMENT: 0.65%
6,814,800 FLEETWOOD ENTERPRISES INCORPORATED+** 23,511,060
--------------
TOTAL COMMON STOCKS (COST $2,723,061,103) 3,291,357,539
--------------
INVESTMENT COMPANIES: 0.43%
225,700 ISHARES RUSSELL 2000 VALUE INDEX FUND 15,383,712
TOTAL INVESTMENT COMPANIES (COST $17,228,725) 15,383,712
--------------
SHORT-TERM INVESTMENTS: 9.53%
334,755,007 WELLS FARGO ADVANTAGE MONEY MARKET TRUST~## 334,755,007
--------------
PRINCIPAL INTEREST RATE MATURITY DATE
------------ ------------- -------------
US TREASURY BILLS: 0.27%
$ 10,000,000 US TREASURY BILLS@ 2.17% 05/22/2008 9,998,121
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $344,742,407) 344,753,128
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $3,085,032,235)* 100.97% $3,651,494,379
OTHER ASSETS AND LIABILITIES, NET (0.97) (35,127,707)
------ --------------
TOTAL NET ASSETS 100.00% $3,616,366,672
------ --------------
52 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
EXPIRATION
CONTRACTS SECURITY NAME STRIKE PRICE DATE VALUE
------------ -------------------------------------------------------------- ------------- ------------- --------------
WRITTEN OPTIONS: (0.84%)
(200) ANNALY CAPITAL MANAGEMENT INCORPORATED CALL+ $ 22.50 07/19/2008 $ (1,000)
(1,500) ANWORTH MORTGAGE ASSET CORPORATION CALL+ 7.50 07/19/2008 (45,000)
(200) ANWORTH MORTGAGE ASSET CORPORATION CALL+ 7.50 10/18/2008 (10,000)
(100) APPLERA CORPORATION- APPLIED BIOSYSTEMS GROUP CALL+ 25.00 09/20/2008 (72,000)
(900) ASHLAND INCORPORATED CALL+ 55.00 07/19/2008 (211,500)
(600) CAPSTEAD MORTGAGE CORPORATION CALL+ 12.50 11/22/2008 (69,000)
(600) CAPSTEAD MORTGAGE CORPORATION CALL+ 15.00 11/22/2008 (27,000)
(200) CARPENTER TECHNOLOGY CALL+ 50.00 06/21/2008 (85,000)
(500) CARPENTER TECHNOLOGY CORPORATION CALL+ 50.00 05/17/2008 (137,000)
(800) CARPENTER TECHNOLOGY CORPORATION CALL+ 52.50 06/21/2008 (264,000)
(550) CARPENTER TECHNOLOGY CORPORATION CALL+ 55.00 06/21/2008 (101,750)
(1,200) CARPENTER TECHNOLOGY CORPORATION CALL+ 50.00 09/20/2008 (816,000)
(200) CARPENTER TECHNOLOGY CORPORATION CALL+ 60.00 09/20/2008 (52,500)
(400) CARPENTER TECHNOLOGY CORPORATION CALL+ 55.00 09/20/2008 (168,000)
(300) CHAMPION ENTERPRISES INCORPORATED CALL+ 12.50 07/19/2008 (15,000)
(150) CHAMPION ENTERPRISES INCORPORATED CALL+ 12.50 10/18/2008 (15,000)
(200) COGNEX CORPORATION CALL+ 20.00 05/17/2008 (100,000)
(200) COGNEX CORPORATION CALL+ 25.00 05/22/2008 (17,000)
(300) COGNEX CORPORATION CALL+ 25.00 08/16/2008 (69,000)
(200) COGNEX CORPORATION CALL+ 30.00 11/22/2008 (30,000)
(300) COGNEX CORPORATION CALL+ 25.00 06/21/2008 (45,000)
(874) ENCORE WIRE CORPORATION CALL+ 15.00 11/22/2008 (672,980)
(150) FOREST OIL CORPORATION CALL+ 55.00 08/16/2008 (108,000)
(300) GEO GROUP INCORPORATED CALL+ 30.00 06/21/2008 (13,500)
(200) GLOBAL INDUSTRIES LIMITED CALL+ 17.50 06/21/2008 (10,000)
(200) GLOBAL INDUSTRIES LIMITED PUT+ 17.50 06/21/2008 (41,000)
(300) GOLDCORP INCORPORATED CALL+ 35.00 06/21/2008 (87,000)
(500) GOLDCORP INCORPORATED CALL+ 40.00 06/21/2008 (50,000)
(300) GOLDCORP INCORPORATED CALL+ 42.50 07/19/2008 (33,000)
(100) HELIX ENERGY SOLUTIONS GROUP CALL+ 35.00 06/21/2008 (20,000)
(200) HELMERICH & PAYNE INCORPORATED CALL+ 45.00 09/20/2008 (210,000)
(200) HELMERICH & PAYNE INCORPORATED CALL+ 50.00 09/20/2008 (146,800)
(1,295) HELMERICH & PAYNE INCORPORATED CALL+ 40.00 06/21/2008 (1,761,200)
(1,250) HELMERICH & PAYNE INCORPORATED CALL+ 45.00 06/21/2008 (1,137,500)
(400) HELMERICH & PAYNE INCORPORATED CALL+ 50.00 06/21/2008 (217,200)
(300) HELMERICH & PAYNE INCORPORATED CALL+ 55.00 09/20/2008 (137,700)
(300) HELMERICH & PAYNE INCORPORATED CALL+ 60.00 09/20/2008 (84,000)
(400) INTEROIL CORPORATION CALL+ 20.00 06/21/2008 (88,000)
(100) LAN AIRLINES S.A. CALL+ 15.00 09/20/2008 (7,500)
(200) MASTEC INCORPORATED CALL+ 10.00 07/19/2008 (3,000)
(200) MCMORAN EXPLORATION COMPANY CALL+ 25.00 08/16/2008 (93,600)
(200) MCMORAN EXPLORATION COMPANY CALL+ 30.00 11/22/2008 (64,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 65.00 06/21/2008 (29,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 60.00 06/21/2008 (78,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 65.00 09/20/2008 (74,000)
(200) NEWFIELD EXPLORATION COMPANY CALL+ 75.00 09/20/2008 (28,000)
(100) NOBLE ENERGY CALL+ 75.00 08/16/2008 (143,000)
Wells Fargo Advantage Small and Mid Cap Stock Funds 53
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
EXPIRATION
CONTRACTS SECURITY NAME STRIKE PRICE DATE VALUE
------------ -------------------------------------------------------------- ------------- ------------- --------------
WRITTEN OPTIONS (continued)
(600) NOBLE ENERGY CALL+ $ 80.00 08/16/2008 $ (619,200)
(1,100) OM GROUP INCORPORATED CALL+ 50.00 06/21/2008 (825,000)
(1,150) OM GROUP INCORPORATED CALL+ 55.00 06/21/2008 (483,000)
(1,143) OM GROUP INCORPORATED CALL+ 60.00 06/21/2008 (280,034)
(550) OM GROUP INCORPORATED CALL+ 45.00 09/20/2008 (704,000)
(550) OM GROUP INCORPORATED CALL+ 50.00 09/20/2008 (528,000)
(200) R.H. DONNELLEY CORPORATION CALL+(A) 20.00 05/17/2008 0
(600) R.H. DONNELLEY CORPORATION CALL+(A) 22.50 05/17/2008 0
(500) RANDGOLD RESOURCES LIMITED CALL+ 50.00 06/21/2008 (82,500)
(400) RANDGOLD RESOURCES LIMITED CALL+ 55.00 06/22/2008 (28,000)
(100) RANDGOLD RESOURCES LIMITED CALL+ 55.00 09/20/2008 (26,500)
(100) RANDGOLD RESOURCES LIMITED CALL+ 70.00 09/20/2008 (5,500)
(400) RANDGOLD RESOURCES LIMITED CALL+ 60.00 06/21/2008 (12,000)
(50) RANDGOLD RESOURCES LIMITED CALL+ 65.00 06/21/2008 (750)
(100) RANDGOLD RESOURCES LIMITED CALL+ 60.00 09/20/2008 (17,000)
(100) RANDGOLD RESOURCES LIMITED CALL+ 65.00 09/20/2008 (10,000)
(100) RANGOLD RESOURCES LIMITED CALL+ 75.00 09/20/2008 (3,000)
(597) SRA INTERNATIONAL INCORPORATED CALL+ 22.50 06/21/2008 (202,980)
(300) SRA INTERNATIONAL INCORPORATED CALL+ 25.00 06/21/2008 (60,000)
(230) STEEL DYNAMICS INCORPORATED CALL+ 32.50 11/22/2008 (157,090)
(1,400) STEEL DYNAMICS INCORPORATED CALL+ 35.00 05/17/2008 (224,000)
(600) STEEL DYNAMICS INCORPORATED CALL+ 27.50 08/16/2008 (504,000)
(2,400) STEEL DYNAMICS INCORPORATED CALL+ 30.00 08/16/2008 (1,680,000)
(1,500) STEEL DYNAMICS INCORPORATED CALL+ 22.50 05/17/2008 (1,888,500)
(2,000) STEEL DYNAMICS INCORPORATED CALL+ 25.00 05/17/2008 (2,046,000)
(2,300) STEEL DYNAMICS INCORPORATED CALL+ 27.50 05/17/2008 (1,656,000)
(3,300) STEEL DYNAMICS INCORPORATED CALL+ 30.00 05/17/2008 (1,848,000)
(3,000) STEEL DYNAMICS INCORPORATED CALL+ 32.50 05/17/2008 (933,000)
(400) STEEL DYNAMICS INCORPORATED CALL+ 25.00 08/16/2008 (420,000)
(1,175) STEEL DYNAMICS INCORPORATED CALL+ 32.50 08/16/2008 (638,025)
(600) STEEL DYNAMICS INCORPORATED CALL+ 35.00 08/16/2008 (240,000)
(200) STEEL DYNAMICS INCORPORATED CALL+ 40.00 08/16/2008 (40,000)
(200) STEEL DYNAMICS INCORPORATED CALL+ 40.00 08/16/2008 (40,000)
(500) STEEL DYNAMICS INCORPORATED CALL+ 30.00 11/22/2008 (395,000)
(400) STEEL DYNAMICS INCORPORATED CALL+ 37.50 05/17/2008 (24,000)
(150) SYMMETRY MEDICAL INCORPORATED CALL+ 20.00 07/19/2008 (750)
(400) THE COLONIAL BANCGROUP INCORPORATED CALL+ 10.00 06/21/2008 (10,000)
(250) UNITED STATES STEEL CORPORATION CALL+ 110.00 07/19/2008 (1,150,000)
(525) UNITED STATES STEEL CORPORATION CALL+ 115.00 07/19/2008 (2,252,250)
(295) UNITED STATES STEEL CORPORATION CALL+ 110.00 10/18/2008 (1,457,300)
(250) UNITED STATES STEEL CORPORATION CALL+ 105.00 07/19/2008 (1,305,000)
(400) WILLBROS GROUP INCORPORATED CALL+ 40.00 06/21/2008 (50,800)
(200) WILLBROS GROUP INCORPORATED CALL+ 45.00 06/21/2008 (6,000)
(150) YAMANA GOLD INCORPORATED CALL+ 15.00 07/19/2008 (9,000)
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(22,295,052)) (30,550,909)
--------------
54 Wells Fargo Advantage Small and Mid Cap Stock Funds
Portfolio of Investments--April 30, 2008 (Unaudited)
SMALL CAP VALUE FUND
----------
+ Non-income earning securities.
# All or a portion of this security is segregated as collateral for
derivative investments. (See Note 2)
** Represents an affiliate of the Fund under section 2(a)(2) and 2(a)(3) of
the Investment Company Act of 1940, as Fund holds 5% or more of the
issuer's outstanding voting shares.
(A) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
~ This Wells Fargo Advantage Fund invests cash balances that it retains for
liquidity purposes in a Wells Fargo Advantage Money Market Fund. The Fund
does not pay an investment advisory fee for such investments.
## Short-term security of an affiliate of the Fund with a cost of
$334,755,007.
@ Zero coupon bond. Interest rate presented is yield to maturity.
* Cost for federal income tax purposes is substantially the same as for
financial reporting purposes.
The accompanying notes are an integral part of these financial statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
56 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Assets and Liabilities-April 30, 2008 (Unaudited)
C&B Mid Common Mid Cap
Cap Value Stock Growth
Fund Fund Fund
------------ -------------- ------------
ASSETS
Investments
In securities, at market value (including securities on loan) .... $464,360,898 $ 925,786,137 $139,627,892
Collateral received for securities loaned (Note 2) ............... 123,919,830 129,534,960 41,253,710
Investments in affiliates ........................................ 13,913,831 113,948,622 7,977,326
------------ -------------- ------------
Total investments at market value (see cost below) .................. 602,194,559 1,169,269,719 188,858,928
------------ -------------- ------------
Cash ................................................................ 0 0 50,000
Receivable for Fund shares issued ................................... 396,674 224,542 11,451
Receivable for investments sold ..................................... 10,702,418 2,385,350 1,874,678
Receivables for dividends and interest .............................. 72,977 664,310 52,927
Receivable for interest rate swaps/spread locks ..................... 0 970,560 0
------------ -------------- ------------
Total assets ........................................................... 613,366,628 1,173,514,481 190,847,984
------------ -------------- ------------
LIABILITIES
Option written, at value ............................................ 0 0 0
Payable for Fund shares redeemed .................................... 545,759 246,218 42,367
Payable for investments purchased ................................... 0 953,230 762,309
Dividends payable ................................................... 0 0 149
Payable to investment advisor and affiliates (Note 3) ............... 385,003 877,867 123,190
Payable upon receipt of securities loaned (Note 2) .................. 125,662,384 131,111,695 41,728,496
Accrued expenses and other liabilities .............................. 75,209 367,969 30,751
------------ -------------- ------------
Total liabilities ...................................................... 126,668,355 133,556,979 42,687,262
------------ -------------- ------------
TOTAL NET ASSETS ....................................................... $486,698,273 $1,039,957,502 $148,160,722
------------ -------------- ------------
NET ASSETS CONSIST OF
Paid-in capital ..................................................... $617,488,845 $ 883,473,456 $147,384,838
Undistributed net investment income (loss) .......................... 2,970,513 (6,093,144) (666,721)
Undistributed net realized gain (loss) on investments ............... (44,908,297) 23,359,861 521,309
Net unrealized appreciation (depreciation) of investments, foreign
currencies and translation of assets and liabilities denominated
in foreign currencies ............................................ (88,852,788) 138,246,766 921,296
Net unrealized appreciation (depreciation) of options, swap
agreements, and short sales ...................................... 0 970,560 0
------------ -------------- ------------
TOTAL NET ASSETS ....................................................... $486,698,273 $1,039,957,502 $148,160,722
------------ -------------- ------------
COMPUTATION OF NE T ASSE T VA LUE AND OFFERING PRICE PER SHARE (1)
Net assets - Class A ................................................ $ 33,220,312 $ 129,450,122 $104,383,008
Shares outstanding - Class A ........................................ 2,247,987 7,423,689 18,670,136
Net asset value per share - Class A ................................. $ 14.78 $ 17.44 $ 5.59
Maximum offering price per share - Class A(2) ....................... $ 15.68 $ 18.50 $ 5.93
Net assets - Class B ................................................ $ 8,747,218 $ 24,283,140 $ 4,600,945
Shares outstanding - Class B ........................................ 610,326 1,514,755 895,685
Net asset value and offering price per share - Class B .............. $ 14.33 $ 16.03 $ 5.14
Net assets - Class C ................................................ $ 10,045,393 $ 15,266,811 $ 2,630,410
Shares outstanding - Class C ........................................ 700,511 952,696 512,869
Net asset value and offering price per share - Class C .............. $ 14.34 $ 16.02 $ 5.13
Net assets - Class D ................................................ $315,336,701 NA NA
Shares outstanding - Class D ........................................ 21,230,506 NA NA
Net asset value and offering price per share - Class D .............. $ 14.85 NA NA
Net assets - Class Z ................................................ NA $ 870,957,429 $ 36,525,062
Shares outstanding - Class Z ........................................ NA 48,885,900 6,580,636
Net asset value and offering price per share - Class Z .............. NA $ 17.82 $ 5.55
Net assets - Administrator Class .................................... $ 54,040,395 NA $ 10,649
Shares outstanding - Administrator Class ............................ 3,625,703 NA 1,905
Net asset value and offering price per share - Administrator Class .. $ 14.90 NA $ 5.59
Net assets - Institutional Class .................................... $ 65,308,254 NA $ 10,648
Shares outstanding - Institutional Class ............................ 4,370,183 NA 1,905
Net asset value and offering price per share - Institutional Class .. $ 14.94 NA $ 5.59
------------ -------------- ------------
Investments at cost .................................................... $691,047,347 $1,031,022,953 $187,937,632
------------ -------------- ------------
Securities on loan, at market value (Note 2) ........................... $121,418,938 $ 126,004,699 $ 39,863,799
------------ -------------- ------------
Premiums received on written options (Note 2) .......................... $ 0 $ 0 $ 0
------------ -------------- ------------
(1) Each Fund has an unlimited number of authorized shares.
(2) Maximum offering price is computed as 100/94.25 of net asset value. On
investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities-April 30, 2008 (Unaudited)
Wells Fargo Advantage Small and Mid Cap Stock Funds 57
Small Cap Small Cap Small Cap
Growth Opportunities Value
Fund Fund Fund
-------------- ------------- --------------
ASSETS
Investments
In securities, at market value (including securities on loan) .... $ 387,879,171 $690,772,219 $2,120,353,073
Collateral received for securities loaned (Note 2) ............... 161,205,275 229,524,335 0
Investments in affiliates ........................................ 18,156,795 71,836,415 1,531,141,306
-------------- ------------ --------------
Total investments at market value (see cost below) .................. 567,241,241 992,132,969 3,651,494,379
-------------- ------------ --------------
Cash ................................................................ 50,000 50,000 30,000
Receivable for Fund shares issued ................................... 1,324,778 43,801 1,997,841
Receivable for investments sold ..................................... 3,310,690 6,977,468 9,873,040
Receivables for dividends and interest .............................. 65,688 554,058 2,165,097
Receivable for interest rate swaps/spread locks ..................... 0 0 0
-------------- ------------ --------------
Total assets ........................................................... 571,992,397 999,758,296 3,665,560,357
-------------- ------------ --------------
LIABILITIES
Option written, at value ............................................ 0 0 30,550,909
Payable for Fund shares redeemed .................................... 95,738 850 498,107
Payable for investments purchased ................................... 3,929,290 1,514,896 14,024,392
Dividends payable ................................................... 0 0 7,816
Payable to investment advisor and affiliates (Note 3) ............... 327,941 618,085 3,322,105
Payable upon receipt of securities loaned (Note 2) .................. 163,013,104 232,386,613 0
Accrued expenses and other liabilities .............................. 70,367 182,702 790,356
-------------- ------------ --------------
Total liabilities ...................................................... 167,436,440 234,703,146 49,193,685
-------------- ------------ --------------
TOTAL NET ASSETS ....................................................... $ 404,555,957 $765,055,150 $3,616,366,672
-------------- ------------ --------------
NET ASSETS CONSIST OF
Paid-in capital ..................................................... $ 452,785,192 $692,731,605 $3,047,112,206
Undistributed net investment income (loss) .......................... (1,638,637) 115,690 (39,416,500)
Undistributed net realized gain (loss) on investments ............... (7,325,243) 33,828,162 50,464,241
Net unrealized appreciation (depreciation) of investments, foreign
currencies and translation of assets and liabilities denominated
in foreign currencies ............................................ (39,265,355) 38,379,693 566,462,582
Net unrealized appreciation (depreciation) of options, swap
agreements, and short sales ...................................... 0 0 (8,255,857)
-------------- ------------ --------------
TOTAL NET ASSETS ....................................................... $ 404,555,957 $765,055,150 $3,616,366,672
-------------- ------------ --------------
COMPUTATION OF NE T ASSE T VA LUE AND OFFERING PRICE PER SHARE (1)
Net assets - Class A ................................................ $ 174,011,165 NA $ 606,373,516
Shares outstanding - Class A ........................................ 15,602,196 NA 21,554,947
Net asset value per share - Class A ................................. $ 11.15 NA $ 28.13
Maximum offering price per share - Class A(2) ....................... $ 11.83 NA $ 29.85
Net assets - Class B ................................................ $ 8,827,762 NA $ 94,607,404
Shares outstanding - Class B ........................................ 831,908 NA 3,645,925
Net asset value and offering price per share - Class B .............. $ 10.61 NA $ 25.95
Net assets - Class C ................................................ $ 7,999,834 NA $ 119,357,998
Shares outstanding - Class C ........................................ 752,609 NA 4,585,140
Net asset value and offering price per share - Class C .............. $ 10.63 NA $ 26.03
Net assets - Class D ................................................ NA NA NA
Shares outstanding - Class D ........................................ NA NA NA
Net asset value and offering price per share - Class D .............. NA NA NA
Net assets - Class Z ................................................ $ 30,761,141 NA $2,383,377,507
Shares outstanding - Class Z ........................................ 2,777,336 NA 83,514,517
Net asset value and offering price per share - Class Z .............. $ 11.08 NA $ 28.54
Net assets - Administrator Class .................................... $ 90,520,720 $765,055,150 NA
Shares outstanding - Administrator Class ............................ 8,016,940 24,175,082 NA
Net asset value and offering price per share - Administrator Class .. $ 11.29 $ 31.65 NA
Net assets - Institutional Class .................................... $ 92,435,335 NA $ 412,650,247
Shares outstanding - Institutional Class ............................ 8,092,702 NA 14,488,851
Net asset value and offering price per share - Institutional Class .. $ 11.42 NA $ 28.48
-------------- ------------ --------------
Investments at cost .................................................... $ 606,506,596 $953,753,276 $3,085,032,235
-------------- ------------ --------------
Securities on loan, at market value (Note 2) ........................... $ 155,783,652 $223,205,330 $ 0
-------------- ------------ --------------
Premiums received on written options (Note 2) .......................... $ 0 $ 0 $ 22,295,052
-------------- ------------ --------------
58 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Operations--For the Six Months Ended April 30, 2008 (Unaudited)
C&B Mid Common
Cap Value Stock
Fund Fund
------------- -------------
INVESTMENT INCOME
Dividends(1) ......................... $ 8,119,967 $ 3,534,708
Interest ............................. 1,354 163,389
Interest from affiliated securities .. 273,211 2,471,511
Securities lending income, net ....... 276,971 382,047
------------- -------------
Total investment income ................. 8,671,503 6,551,655
------------- -------------
EXPENSES
Advisory fees ........................ 2,298,866 3,744,683
Administration fees
Fund Level ........................ 155,347 259,448
Class A ........................... 53,370 78,604
Class B ........................... 14,968 36,920
Class C ........................... 16,837 22,416
Class D ........................... 577,509 NA
Class Z ........................... NA 2,036,684
Administrator Class ............... 39,654 NA
Institutional Class ............... 27,493 NA
Custody fees ......................... 62,139 103,779
Shareholder servicing fees (Note 3) .. 688,774 1,287,814
Accounting fees ...................... 38,944 35,129
Distribution fees (Note 3)
Class B ........................... 40,093 98,892
Class C ........................... 45,101 60,044
Professional fees .................... 16,091 7,302
Registration fees .................... 41,541 26,147
Shareholder reports .................. 61,528 106,739
Trustees'fees ........................ 4,323 4,323
Other fees and expenses .............. 28,969 6,318
------------- -------------
Total expenses .......................... 4,211,547 7,915,242
------------- -------------
LESS
Waived fees and reimbursed expenses
(Note 3) .......................... (345,917) (1,052,524)
Net expenses ......................... 3,865,630 6,862,718
------------- -------------
Net investment income (loss) ............ 4,805,873 (311,063)
------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Securities, foreign currencies and
foreign currency translation ...... (43,471,354) 29,792,915
Options, swap agreements and short
sale transactions ................. 0 1,570,643
------------- -------------
Net realized gain and loss from
investments .......................... (43,471,354) 31,363,558
------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF
Securities, foreign currencies and
foreign currency translation ...... (81,191,471) (108,288,050)
Options, swap agreements and short
sale transactions ................. 0 (3,926,804)
------------- -------------
Net change in unrealized appreciation
(depreciation) of investments ........ (81,191,471) (112,214,854)
------------- -------------
Net realized and unrealized gain
(loss) on investments ................ (124,662,825) (80,851,296)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............ $(119,856,952) $ (81,162,359)
============= =============
(1)Net of foreign withholding taxes
of ................................... $ 0 $ 0
(2) Administrator Class and Institutional Class in Mid Cap Growth Fund
originated on March 31, 2008. Expenses presented for these Classes are for
the one month period from March 31, 2008 to April 30, 2008.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 59
Statements of Operations--For the Six Months Ended April 30, 2008 (Unaudited)
Mid Cap Small Cap Small Cap Small Cap
Growth Growth Opportunities Value
Fund(2) Fund Fund Fund
------------ ------------ ------------- -------------
INVESTMENT INCOME
Dividends(1) ......................... $ 322,477 $ 310,114 $ 3,086,291 $ 14,920,475
Interest ............................. 0 149 27,300 249,011
Interest from affiliated securities .. 65,466 207,618 1,489,518 3,779,574
Securities lending income, net ....... 79,989 436,866 653,598 0
------------ ------------ ------------- -------------
Total investment income ................. 467,932 954,747 5,256,707 18,949,060
------------ ------------ ------------- -------------
EXPENSES
Advisory fees ........................ 577,371 1,765,970 3,411,160 14,699,516
Administration fees
Fund Level ........................ 38,491 99,893 196,437 908,617
Class A ........................... 151,912 243,536 NA 867,767
Class B ........................... 7,481 14,952 NA 143,206
Class C ........................... 3,629 12,076 NA 175,379
Class D ........................... NA NA NA NA
Class Z ........................... 81,437 72,058 NA 5,245,632
Administrator Class ............... 1 44,252 392,874 NA
Institutional Class ............... 1 33,860 NA 146,849
Custody fees ......................... 15,397 39,957 78,575 363,447
Shareholder servicing fees (Note 3) .. 190,871 390,391 880,423 4,052,014
Accounting fees ...................... 17,444 26,928 33,175 97,019
Distribution fees (Note 3)
Class B ........................... 20,039 40,052 NA 383,587
Class C ........................... 9,721 32,345 NA 469,766
Professional fees .................... 15,229 15,163 17,693 29,564
Registration fees .................... 18,864 27,515 12,564 63,020
Shareholder reports .................. 9,164 87,953 33,928 198,702
Trustees'fees ........................ 4,323 4,323 4,323 4,323
Other fees and expenses .............. 4,026 7,299 10,171 38,384
------------ ------------ ------------- -------------
Total expenses ....................... 1,165,401 2,958,523 5,071,323 27,886,792
------------ ------------ ------------- -------------
LESS
Waived fees and reimbursed expenses
(Note 3) .......................... (30,748) (365,139) (356,829) (2,769,843)
Net expenses ......................... 1,134,653 2,593,384 4,714,494 25,116,949
------------ ------------ ------------- -------------
Net investment income (loss) ............ (666,721) (1,638,637) 542,213 (6,167,889)
------------ ------------ ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM
Securities, foreign currencies and
foreign currency translation ...... 3,656,328 5,913,910 34,093,003 132,682,483
Options, swap agreements and short
sale transactions ................. 0 0 0 (7,651,232)
------------ ------------ ------------- -------------
Net realized gain and loss from
investments .......................... 3,656,328 5,913,910 34,093,003 125,031,251
------------ ------------ ------------- -------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF
Securities, foreign currencies and
foreign currency translation ...... (24,040,024) (85,441,669) (108,933,051) (523,894,953)
Options, swap agreements and short
sale transactions ................. 0 0 0 14,961,534
------------ ------------ ------------- -------------
Net change in unrealized appreciation
(depreciation) of investments ........ (24,040,024) (85,441,669) (108,933,051) (508,933,419)
------------ ------------ ------------- -------------
Net realized and unrealized gain
(loss) on investments ................ (20,383,696) (79,527,759) (74,840,048) (383,902,168)
------------ ------------ ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............ $(21,050,417) $(81,166,396) $ (74,297,835) $(390,070,057)
============ ============ ============= =============
(1)Net of foreign withholding taxes
of ................................... $ 0 $ 0 $ 6,765 $ 295,171
60 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
C&B MID CAP VALUE FUND
-----------------------------
For the Six
Months Ended For the
April 30, Year Ended
2008 October
(Unaudited) 31, 2007
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .................................. $ 897,718,698 $ 818,180,774
OPERATIONS
Net investment income (loss) .......................... 4,805,873 2,495,371
Net realized gain (loss) on investments ............... (43,471,354) 142,758,144
Net change in unrealized appreciation (depreciation)
of investments ..................................... (81,191,471) (123,140,198)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................ (119,856,952) 22,113,317
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ............................................ (157,101) (129,710)
Class D ............................................ (1,810,640) (2,464,100)
Class Z ............................................ NA NA
Administrator Class ................................ (552,724) (295,845)
Institutional Class ................................ (679,686) (381,798)
Net realized gain on sales of investments
Class A ............................................ (8,882,013) (4,798,388)
Class B ............................................ (2,603,231) (1,754,248)
Class C ............................................ (2,913,466) (1,369,537)
Class D ............................................ (96,283,334) (69,570,389)
Class Z ............................................ NA NA
Administrator Class ................................ (18,417,909) (9,270,199)
Institutional Class ................................ (14,379,949) (6,136,456)
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................... (146,680,053) (96,170,670)
------------- -------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ................... 7,018,764 31,726,720
Reinvestment of distributions - Class A ............... 8,214,556 4,476,488
Cost of shares redeemed - Class A ..................... (16,403,497) (23,204,542)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ............... (1,170,177) 12,998,666
------------- -------------
Proceeds from shares sold - Class B ................... 186,281 3,411,150
Reinvestment of distributions - Class B ............... 2,546,003 1,714,930
Cost of shares redeemed - Class B ..................... (3,579,566) (4,979,826)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ............... (847,282) 146,254
------------- -------------
Proceeds from shares sold - Class C ................... 839,925 7,377,350
Reinvestment of distributions - Class C ............... 2,743,750 1,337,883
Cost of shares redeemed - Class C ..................... (4,455,046) (2,700,391)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ............... (871,371) 6,014,842
------------- -------------
Proceeds from shares sold - Class D ................... 71,657,924 334,570,385
Reinvestment of distributions - Class D ............... 96,063,585 70,808,233
Cost of shares redeemed - Class D ..................... (307,692,631) (329,876,882)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D ............... (139,971,122) 75,501,736
------------- -------------
Proceeds from shares sold - Class Z ................... NA NA
Reinvestment of distributions - Class Z ............... NA NA
Cost of shares redeemed - Class Z ..................... NA NA
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z ............... NA NA
------------- -------------
Proceeds from shares sold - Administrator Class ....... 11,117,763 93,373,223
Reinvestment of distributions - Administrator Class ... 15,804,466 8,092,708
Cost of shares redeemed - Administrator Class ......... (41,304,375) (74,503,717)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS ... (14,382,146) 26,962,214
------------- -------------
Proceeds from shares sold - Institutional Class ....... 47,334,589 158,953,830
Reinvestment of distributions - Institutional Class ... 15,059,269 6,495,331
Cost of shares redeemed - Institutional Class ......... (49,635,180) (133,477,596)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ... 12,758,678 31,971,565
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL ................. (144,483,420) 153,595,277
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS .................... (411,020,425) 79,537,924
============= =============
ENDING NET ASSETS ........................................ $ 486,698,273 $ 897,718,698
============= =============
----------
(1) Administrator Class and Institutional Class in Mid Cap Growth Fund
originated on March 31, 2008. Information presented for these Classes are
for the one month period from March 31, 2008 to April 30, 2008.
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 61
Statements of Changes in Net Assets
COMMON STOCK FUND MID CAP GROWTH FUND(1)
------------------------------- ---------------------------
For the Six
For the Six Months Ended For the
Months Ended For the Year April 30, Year Ended
April 30, 2008 Ended October 2008 October
(Unaudited) 31, 2007 (Unaudited) 31, 2007
-------------- -------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets .................................. $1,169,835,570 $1,109,461,730 $182,370,941 $151,216,185
OPERATIONS
Net investment income (loss) .......................... (311,063) (3,137,868) (666,721) (1,144,590)
Net realized gain (loss) on investments ............... 31,363,558 187,169,116 3,656,328 35,485,585
Net change in unrealized appreciation (depreciation)
of investments ..................................... (112,214,854) 22,482,474 (24,040,024) 10,829,257
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ............................................ (81,162,359) 206,513,722 (21,050,417) 45,170,252
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A ............................................ (356,600) 0 0 0
Class D ............................................ NA NA NA NA
Class Z ............................................ (6,223,545) NA NA NA
Administrator Class ................................ NA NA NA NA
Institutional Class ................................ NA NA NA NA
Net realized gain on sales of investments
Class A ............................................ (9,803,131) (13,744,701) (21,824,690) (13,456,997)
Class B ............................................ (5,181,903) (7,596,727) (1,194,436) (986,175)
Class C ............................................ (3,130,306) (4,181,212) (527,976) (265,145)
Class D ............................................ NA NA NA NA
Class Z ............................................ (163,460,865) (204,174,197) (7,430,771) (4,903,153)
Administrator Class ................................ NA NA NA NA
Institutional Class ................................ NA NA NA NA
-------------- -------------- ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ...................... (188,156,350) (229,696,837) (30,977,873) (19,611,470)
-------------- -------------- ------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A ................... 112,663,075 14,474,513 13,356,583 38,910,546
Reinvestment of distributions - Class A ............... 9,893,384 13,416,447 21,178,965 13,075,687
Cost of shares redeemed - Class A ..................... (41,115,037) (28,054,689) (21,977,419) (45,275,618)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A ............... 81,441,422 (163,729) 12,558,129 6,710,615
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class B ................... 679,896 2,209,224 406,412 977,239
Reinvestment of distributions - Class B ............... 4,763,889 6,836,229 1,112,795 930,174
Cost of shares redeemed - Class B ..................... (5,053,043) (10,027,286) (2,009,403) (3,288,230)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B ............... 390,742 (981,833) (490,196) (1,380,817)
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class C ................... 2,067,347 2,582,068 658,714 814,740
Reinvestment of distributions - Class C ............... 2,473,560 3,193,025 459,826 235,024
Cost of shares redeemed - Class C ..................... (3,273,948) (5,225,033) (310,571) (628,926)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C ............... 1,266,959 550,060 807,969 420,838
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class D ................... NA NA NA NA
Reinvestment of distributions - Class D ............... NA NA NA NA
Cost of shares redeemed - Class D ..................... NA NA NA NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS D ............... NA NA NA NA
-------------- -------------- ------------ ------------
Proceeds from shares sold - Class Z ................... 35,138,430 77,092,133 2,881,306 7,269,651
Reinvestment of distributions - Class Z ............... 163,552,562 196,719,861 7,286,742 4,811,130
Cost of shares redeemed - Class Z ..................... (142,349,474) (189,659,537) (5,245,879) (12,235,443)
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z ............... 56,341,518 84,152,457 4,922,169 (154,662)
-------------- -------------- ------------ ------------
Proceeds from shares sold - Administrator Class ....... NA NA 10,000 NA
Reinvestment of distributions - Administrator Class ... NA NA NA NA
Cost of shares redeemed - Administrator Class ......... NA NA NA NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS ... NA NA 10,000 NA
-------------- -------------- ------------ ------------
Proceeds from shares sold - Institutional Class ....... NA NA 10,000 NA
Reinvestment of distributions - Institutional Class ... NA NA NA NA
Cost of shares redeemed - Institutional Class ......... NA NA NA NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS ... NA NA 10,000 NA
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL ................. 139,440,641 83,556,955 17,818,071 5,595,974
-------------- -------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .................... (129,878,068) 60,373,840 (34,210,219) 31,154,756
============== ============== ============ ============
ENDING NET ASSETS ........................................ $1,039,957,502 $1,169,835,570 $148,160,722 $182,370,941
============== ============== ============ ============
62 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
C&B MID CAP VALUE FUND
--------------------------------
For the Six
Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
-------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ...................................... 447,228 1,373,092
Shares issued in reinvestment of distributions - Class A ... 507,115 201,931
Shares redeemed - Class A .................................. (1,028,011) (1,007,419)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .... (73,668) 567,604
------------ ------------
Shares sold - Class B ...................................... 11,510 150,247
Shares issued in reinvestment of distributions - Class B ... 162,166 78,956
Shares redeemed - Class B .................................. (234,811) (220,269)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .... (61,135) 8,934
------------ ------------
Shares sold - Class C ...................................... 52,874 324,988
Shares issued in reinvestment of distributions - Class C ... 174,650 61,568
Shares redeemed - Class C .................................. (286,453) (119,783)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .... (58,929) 266,773
------------ ------------
Shares sold - Class D ...................................... 4,240,588 14,458,417
Shares issued in reinvestment of distributions - Class D ... 5,901,318 3,182,736
Shares redeemed - Class D .................................. (17,920,158) (14,245,065)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .... (7,778,252) 3,396,088
------------ ------------
Shares sold - Class Z ...................................... NA NA
Shares issued in reinvestment of distributions - Class Z ... NA NA
Shares redeemed - Class Z .................................. NA NA
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .... NA NA
------------ ------------
Shares sold - Administrator Class .......................... 731,018 4,113,343
Shares issued in reinvestment of distributions -
Administrator Class ..................................... 965,683 362,770
Shares redeemed - Administrator Class ...................... (2,720,870) (3,270,300)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ..................................... (1,024,169) 1,205,813
------------ ------------
Shares sold - Institutional Class .......................... 3,027,538 6,606,026
Shares issued in reinvestment of distributions -
Institutional Class ..................................... 915,914 289,818
Shares redeemed - Institutional Class ...................... (3,180,157) (5,612,321)
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ..................................... 763,295 1,283,523
------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ............................ $ (8,232,858) $ 6,728,735
============ ============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .. 2,970,513 1,364,791
------------ ------------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 63
Statements of Changes in Net Assets
COMMON STOCK FUND MID CAP GROWTH FUND
-------------------------------- --------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
-------------- ---------------- -------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A ...................................... 6,491,936 669,198 2,171,488 5,396,336
Shares issued in reinvestment of distributions - Class A ... 554,550 682,424 3,632,756 2,126,112
Shares redeemed - Class A .................................. (2,379,118) (1,318,254) (3,779,088) (6,397,037)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A .... 4,667,368 33,368 2,025,156 1,125,411
----------- ----------- ----------- -----------
Shares sold - Class B ...................................... 41,331 116,278 70,184 147,979
Shares issued in reinvestment of distributions - Class B ... 291,191 370,929 206,839 160,098
Shares redeemed - Class B .................................. (306,728) (506,744) (363,066) (501,269)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B .... 25,794 (19,537) (86,043) (193,192)
----------- ----------- ----------- -----------
Shares sold - Class C ...................................... 126,223 136,826 116,156 123,843
Shares issued in reinvestment of distributions - Class C ... 151,288 173,346 85,629 40,521
Shares redeemed - Class C .................................. (201,956) (266,098) (61,284) (98,666)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS C .... 75,555 44,074 140,501 65,698
----------- ----------- ----------- -----------
Shares sold - Class D ...................................... NA NA NA NA
Shares issued in reinvestment of distributions - Class D ... NA NA NA NA
Shares redeemed - Class D .................................. NA NA NA NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS D .... NA NA NA NA
----------- ----------- ----------- -----------
Shares sold - Class Z ...................................... 1,936,969 3,581,905 502,286 1,043,124
Shares issued in reinvestment of distributions - Class Z ... 8,971,848 9,831,077 1,258,505 784,849
Shares redeemed - Class Z .................................. (7,859,565) (8,578,454) (917,596) (1,782,797)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS Z .... 3,049,252 4,834,528 843,195 45,176
----------- ----------- ----------- -----------
Shares sold - Administrator Class .......................... NA NA 1,905 NA
Shares issued in reinvestment of distributions -
Administrator Class ..................................... NA NA NA NA
Shares redeemed - Administrator Class ...................... NA NA NA NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ..................................... NA NA 1,905 NA
----------- ----------- ----------- -----------
Shares sold - Institutional Class .......................... NA NA 1,905 NA
Shares issued in reinvestment of distributions -
Institutional Class ..................................... NA NA NA NA
Shares redeemed - Institutional Class ...................... NA NA NA NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ..................................... NA NA 1,905 NA
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING RESULTING
FROM CAPITAL SHARE TRANSACTIONS ............................ $ 7,817,969 $ 4,892,433 $ 2,926,619 $ 1,043,093
=========== =========== =========== ===========
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .. (6,093,141) 798,067 (666,721) 0
----------- ----------- ----------- -----------
64 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
Small Cap Growth Fund
-----------------------------------
For the
Six Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets................................ $463,544,108 $292,886,990
OPERATIONS
Net investment income (loss)........................ (1,638,637) (3,197,265)
Net realized gain (loss) on investments............. 5,913,910 77,221,834
Net change in unrealized appreciation (depreciation)
of investments................................... (85,441,669) 19,784,218
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.......................................... (81,166,396) 93,808,787
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A.......................................... 0 0
Class Z.......................................... 0 0
Administrator Class.............................. 0 0
Institutional Class.............................. 0 0
Net realized gain on sales of investments
Class A.......................................... (29,161,141) (15,582,655)
Class B.......................................... (2,018,118) (2,180,416)
Class C.......................................... (1,584,750) (756,886)
Class Z.......................................... (5,722,026) (4,055,692)
Administrator Class.............................. (15,809,026) (7,516,815)
Institutional Class.............................. (12,816,987) (6,047,204)
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS.................... (67,112,048) (36,139,668)
------------ ------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A................. 80,936,769 100,373,579
Reinvestment of distributions - Class A............. 22,004,281 11,256,743
Cost of shares redeemed - Class A................... (63,978,422) (47,765,376)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A............. 38,962,628 63,864,946
------------ ------------
Proceeds from shares sold - Class B................. 243,694 971,844
Reinvestment of distributions - Class B............. 1,970,777 2,119,310
Cost of shares redeemed - Class B................... (3,255,056) (10,801,018)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B............. (1,040,585) (7,709,864)
------------ ------------
Proceeds from shares sold - Class C................. 1,425,768 3,706,498
Reinvestment of distributions - Class C............. 1,157,737 572,481
Cost of shares redeemed - Class C................... (1,362,606) (1,683,330)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C.............. 1,220,899 2,595,649
------------ ------------
Proceeds from shares sold - Class Z.................. 690,888 3,930,662
Reinvestment of distributions - Class Z.............. 5,532,180 3,918,516
Cost of shares redeemed - Class Z.................... (5,773,828) (7,433,743)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z.............. 449,240 415,435
------------ ------------
Proceeds from shares sold - Administrator Class...... 77,935,055 120,831,747
Reinvestment of distributions - Administrator Class.. 15,530,036 7,142,538
Cost of shares redeemed - Administrator Class........ (79,154,833) (92,578,484)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS.. 14,310,258 35,395,801
------------ ------------
Proceeds from shares sold - Institutional Class...... 57,749,253 30,454,663
Reinvestment of distributions - Institutional Class.. 12,222,925 5,660,954
Cost of shares redeemed - Institutional Class........ (34,584,325) (17,689,585)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS.. 35,387,853 18,426,032
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL................... 89,290,293 112,987,999
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS................... (58,988,151) 170,657,118
------------ ------------
ENDING NET ASSETS....................................... $404,555,957 $463,544,108
============ ============
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 65
Statements of Changes in Net Assets
SMALL CAP OPPORTUNITIES FUND SMALL CAP VALUE FUND
----------------------------------- -----------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
---------------- ---------------- ---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Beginning net assets................................. $ 910,161,940 $ 800,077,699 $ 4,177,653,842 $ 3,500,023,838
Operations
Net investment income (loss)......................... 542,213 2,503,176 (6,167,889) (17,018,686)
Net realized gain (loss) on investments.............. 34,093,003 110,547,125 125,031,251 518,394,262
Net change in unrealized appreciation (depreciation)
of investments.................................... (108,933,051) 50,051,199 (508,933,419) 252,019,887
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................... (74,297,835) 163,101,500 (390,070,057) 753,395,463
------------- ------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income
Class A........................................... NA NA (141,933) 0
Class Z........................................... NA NA (1,105,714) 0
Administrator Class............................... (2,608,842) 0 NA NA
Institutional Class............................... NA NA (2,313,466) NA
Net realized gain on sales of investments
Class A........................................... NA NA (93,419,985) (58,821,788)
Class B........................................... NA NA (16,840,469) (12,074,266)
Class C........................................... NA NA (20,212,008) (13,497,685)
Class Z........................................... NA NA (348,362,033) (229,863,190)
Administrator Class............................... (110,577,897) (123,821,125) NA NA
Institutional Class............................... NA NA (57,044,953) 0
------------- ------------- --------------- ---------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS..................... (113,186,739) (123,821,125) (539,440,561) (314,256,929)
------------- ------------- --------------- ---------------
CAPITAL SHARES TRANSACTIONS
Proceeds from shares sold - Class A.................. NA NA 149,535,892 249,924,269
Reinvestment of distributions - Class A.............. NA NA 91,037,833 57,137,850
Cost of shares redeemed - Class A.................... NA NA (188,771,617) (323,159,164)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A.............. NA NA 51,802,108 (16,097,045)
------------- ------------- --------------- ---------------
Proceeds from shares sold - Class B.................. NA NA 1,288,804 2,596,051
Reinvestment of distributions - Class B.............. NA NA 15,741,113 11,302,227
Cost of shares redeemed - Class B.................... NA NA (17,077,144) (31,534,277)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B.............. NA NA (47,227) (17,635,999)
------------- ------------- --------------- ---------------
Proceeds from shares sold - Class C.................. NA NA 6,537,860 6,263,391
Reinvestment of distributions - Class C.............. NA NA 17,188,714 11,474,049
Cost of shares redeemed - Class C.................... NA NA (16,928,933) (28,594,701)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS C.............. NA NA 6,797,641 (10,857,261)
------------- ------------- --------------- ---------------
Proceeds from shares sold - Class Z.................. NA NA 656,828,379 1,496,152,334
Reinvestment of distributions - Class Z.............. NA NA 343,180,478 227,358,770
Cost of shares redeemed - Class Z.................... NA NA (1,170,379,004) (1,449,062,315)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS Z.............. NA NA (170,370,147) 274,448,789
------------- ------------- --------------- ---------------
Proceeds from shares sold - Administrator Class...... 51,458,645 212,254,384 NA NA
Reinvestment of distributions - Administrator Class.. 109,877,189 119,828,957 NA NA
Cost of shares redeemed - Administrator Class........ (118,958,050) (261,279,475) NA NA
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATOR CLASS.. 42,377,784 70,803,866 NA NA
------------- ------------- --------------- ---------------
Proceeds from shares sold - Institutional Class...... NA NA 655,542,322 25,883,396
Reinvestment of distributions - Institutional Class.. NA NA 59,358,409 NA
Cost of shares redeemed - Institutional Class........ NA NA (234,859,658) (17,250,410)
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - INSTITUTIONAL CLASS.. NA NA 480,041,073 8,632,986
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - TOTAL................... 42,377,784 70,803,866 368,223,448 238,491,470
------------- ------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS................... (145,106,790) 110,084,241 (561,287,170) 677,630,004
------------- ------------- --------------- ---------------
ENDING NET ASSETS....................................... $ 765,055,150 $ 910,161,940 $ 3,616,366,672 $ 4,177,653,842
============= ============= =============== ===============
66 Wells Fargo Advantage Small and Mid Cap Stock Funds
Statements of Changes in Net Assets
SMALL CAP GROWTH FUND
----------------------------------
For the
Six Months Ended For the
April 30, 2008 Year Ended
(Unaudited) October 31, 2007
---------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .......................... 6,800,565 7,065,270
Shares issued in reinvestment of distributions -
Class A ..................................... 1,797,735 861,926
Shares redeemed - Class A ...................... (5,446,176) (3,376,909)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A ..................................... 3,152,124 4,550,287
----------- -----------
Shares sold - Class B .......................... 19,678 71,800
Shares issued in reinvestment of distributions -
Class B ..................................... 168,731 167,534
Shares redeemed - Class B ...................... (285,017) (792,694)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B ..................................... (96,608) (553,360)
----------- -----------
Shares sold - Class C .......................... 113,665 259,770
Shares issued in reinvestment of distributions -
Class C ..................................... 98,952 45,220
Shares redeemed - Class C ...................... (120,070) (123,803)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C ..................................... 92,547 181,187
----------- -----------
Shares sold - Class Z .......................... 59,691 274,133
Shares issued in reinvestment of distributions -
Class Z ..................................... 454,949 301,194
Shares redeemed - Class Z ...................... (440,462) (523,352)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS Z .... ................................ 74,178 51,975
----------- -----------
Shares sold - Administrator Class .............. 6,521,166 8,295,578
Shares issued in reinvestment of distributions -
Administrator Class ......................... 1,254,446 542,746
Shares redeemed - Administrator Class .......... (6,616,415) (6,392,169)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ............................ 1,159,197 2,446,155
----------- -----------
Shares sold - Institutional Class .............. 4,655,019 2,051,797
Shares issued in reinvestment of distributions -
Institutional Class ......................... 977,052 427,888
Shares redeemed - Institutional Class .......... (2,793,297) (1,166,507)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................... 2,838,774 1,313,178
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
RESULTING FROM CAPITAL SHARE TRANSACTIONS ...... $ 7,220,212 $ 7,989,422
=========== ===========
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) .................................. (1,638,637) 0
----------- -----------
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 67
Statements of Changes in Net Assets
SMALL CAP OPPORTUNITIES FUND SMALL CAP VALUE FUND
---------------------------------- ----------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
---------------- ---------------- ---------------- ----------------
SHARES ISSUED AND REDEEMED
Shares sold - Class A .......................... NA NA 5,132,588 7,464,979
Shares issued in reinvestment of distributions -
Class A ..................................... NA NA 3,221,474 1,855,125
Shares redeemed - Class A ...................... NA NA (6,515,325) (9,710,247)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A ..................................... NA NA 1,838,737 (390,143)
----------- ----------- ------------ ------------
Shares sold - Class B .......................... NA NA 49,208 86,150
Shares issued in reinvestment of distributions -
Class B ..................................... NA NA 602,415 389,195
Shares redeemed - Class B ...................... NA NA (639,816) (1,007,264)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B ..................................... NA NA 11,807 (531,919)
----------- ----------- ------------ ------------
Shares sold - Class C .......................... NA NA 248,772 208,819
Shares issued in reinvestment of distributions -
Class C ..................................... NA NA 655,557 394,026
Shares redeemed - Class C ...................... NA NA (633,336) (924,913)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS C ..................................... NA NA 270,993 (322,068)
----------- ----------- ------------ ------------
Shares sold - Class Z .......................... NA NA 22,470,535 44,393,827
Shares issued in reinvestment of distributions -
Class Z ..................................... NA NA 11,970,313 7,296,494
Shares redeemed - Class Z ...................... NA NA (37,586,903) (42,996,852)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS Z .... ................................ NA NA (3,146,055) 8,693,469
----------- ----------- ------------ ------------
Shares sold - Administrator Class .............. 1,591,141 5,868,049 NA NA
Shares issued in reinvestment of distributions -
Administrator Class ......................... 3,416,006 3,514,046 NA NA
Shares redeemed - Administrator Class .......... (3,771,273) (7,190,893) NA NA
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATOR CLASS ......................... 1,235,874 2,191,202 NA NA
----------- ----------- ------------ ------------
Shares sold - Institutional Class .............. NA NA 20,056,400 709,938
Shares issued in reinvestment of distributions -
Institutional Class ......................... NA NA 2,067,848 NA
Shares redeemed - Institutional Class .......... NA NA (7,872,197) (473,138)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
INSTITUTIONAL CLASS ......................... NA NA 14,252,051 236,800
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING
RESULTING FROM CAPITAL SHARE TRANSACTIONS ...... $ 1,235,874 $ 2,191,202 $ 13,227,533 $ 7,686,139
=========== =========== ============ ============
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) .................................. 115,690 2,182,319 (39,416,500) (29,687,498)
----------- ----------- ------------ ------------
68 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net Distributions
Value Per Investment Gain (Loss) Investment from Net
Share Income (Loss) on Investments Income Realized Gains
--------- ------------- -------------- ------------- --------------
C&B MID CAP VALUE FUND
CLASS A
November 1, 2007 to April 30, 2008 (Unaudited) .. $21.80 0.11(6) (2.96) (0.06) (4.11)
November 1, 2006 to October 31, 2007 ............ $23.79 0.03(6) 0.70 (0.06) (2.66)
November 1, 2005 to October 31, 2006 ............ $20.76 0.05(6) 4.72 0.00 (1.74)
November 1, 2004 to October 31, 2005 ............ $18.89 (0.09) 2.54 0.00 (0.58)
July 26, 2004(4) to October 31, 2004 ............ $18.52 (0.00) 0.37 0.00 0.00
CLASS B
November 1, 2007 to April 30, 2008 (Unaudited) .. $21.29 0.05(6) (2.90) 0.00 (4.11)
November 1, 2006 to October 31, 2007 ............ $23.38 (0.14)(6) 0.71 0.00 (2.66)
November 1, 2005 to October 31, 2006 ............ $20.57 (0.11)(6) 4.66 0.00 (1.74)
November 1, 2004 to October 31, 2005 ............ $18.86 (0.17) 2.46 0.00 (0.58)
July 26, 2004(4) to October 31, 2004 ............ $18.52 (0.02) 0.36 0.00 0.00
CLASS C
November 1, 2007 to April 30, 2008 (Unaudited) .. $21.29 0.05(6) (2.89) 0.00 (4.11)
November 1, 2006 to October 31, 2007 ............ $23.39 (0.14)(6) 0.70 0.00 (2.66)
November 1, 2005 to October 31, 2006 ............ $20.57 (0.12)(6) 4.68 0.00 (1.74)
November 1, 2004 to October 31, 2005 ............ $18.86 (0.17) 2.46 0.00 (0.58)
July 26, 2004(4) to October 31, 2004 ............ $18.52 (0.02) 0.36 0.00 0.00
CLASS D
November 1, 2007 to April 30, 2008 (Unaudited) .. $21.89 0.13(6) (3.00) (0.06) (4.11)
November 1, 2006 to October 31, 2007 ............ $23.86 0.06(6) 0.71 (0.08) (2.66)
November 1, 2005 to October 31, 2006 ............ $20.79 0.08(6) 4.73 0.00 (1.74)
November 1, 2004 to October 31, 2005 ............ $18.89 (0.07) 2.55 0.00 (0.58)
November 1, 2003 to October 31, 2004 ............ $17.96 (0.01) 1.11 (0.00) (0.17)
November 1, 2002 to October 31, 2003 ............ $13.15 0.00 4.83 (0.02) 0.00
ADMINISTRATOR CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. $21.98 0.14(6) (3.01) (0.10) (4.11)
November 1, 2006 to October 31, 2007 ............ $23.93 0.08(6) 0.71 (0.08) (2.66)
November 1, 2005 to October 31, 2006 ............ $20.82 0.10(6) 4.75 (0.00) (1.74)
November 1, 2004 to October 31, 2005 ............ $18.90 (0.03) 2.53 0.00 (0.58)
July 26, 2004(4) to October 31, 2004 ............ $18.52 0.00 0.38 0.00 0.00
INSTITUTIONAL CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. $22.06 0.15(6) (3.00) (0.16) (4.11)
November 1, 2006 to October 31, 2007 ............ $24.02 0.14(6) 0.71 (0.15) (2.66)
November 1, 2005 to October 31, 2006 ............ $20.88 0.16(6) 4.76 (0.04) (1.74)
November 1, 2004 to October 31, 2005 ............ $18.91 (0.02) 2.57 0.00 (0.58)
July 26, 2004(4) to October 31, 2004 ............ $18.52 0.02 0.37 0.00 0.00
----------
(1) During each period, various fees and expenses were waived and reimbursed as
indicated. The ratio of Gross Expenses to Average Net Assets reflects the
expense ratio in the absence of any waivers and reimbursements (Note 3).
(2) Total return calculations do not include any sales charges, and would have
been lower had certain expenses not been waived or reimbursed during the
periods shown. Returns for periods less than one year are not annualized.
(3) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued. Portfolio turnover rates presented
for periods of less than one year are not annualized.
(4) Commencement of operations.
(5) The Fund changed its year end from September 30 to October 31.
(6) Calculated based upon average shares outstanding.
(7) The Fund changed its year end from June 30 to September 30.
(8) The Fund changed its year end from December 31 to October 31.
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Wells Fargo Advantage Small and Mid Cap Stock Funds 69
Ending Ratio to Average Net Assets (Annualized)(1)
Distributions Net Asset -----------------------------------------------
in Exceess of Value Per Net Investment Gross Expenses Net
Realized Gains Share Income (Loss) Expenses Waived Expenses
-------------- --------- -------------- -------- -------- --------
C&B MID CAP VALUE FUND
CLASS A
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.78 1.41% 1.40% (0.01)% 1.40%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.80 0.15% 1.36% 0.00% 1.36%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.79 0.21% 1.40% (0.02)% 1.38%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.76 (0.40)% 1.38% 0.00% 1.38%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.89 (0.18)% 1.41% (0.01)% 1.40%
CLASS B
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.33 0.69% 2.15% 0.00% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.29 (0.60)% 2.11% 0.00% 2.11%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.38 (0.54)% 2.15% (0.02)% 2.13%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.57 (1.15)% 2.13% 0.00% 2.13%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.86 (0.95)% 2.16% (0.01)% 2.15%
CLASS C
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.34 0.70% 2.13% (0.01)% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.29 (0.60)% 2.11% 0.00% 2.11%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.39 (0.55)% 2.15% (0.02)% 2.13%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.57 (1.15)% 2.13% 0.00% 2.13%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.86 (0.98)% 2.16% (0.01)% 2.15%
CLASS D
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.85 1.54% 1.40% (0.14)% 1.25%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.89 0.26% 1.36% (0.11)% 1.25%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.86 0.35% 1.40% (0.15)% 1.25%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.79 (0.27)% 1.37% (0.12)% 1.25%
November 1, 2003 to October 31, 2004 ............ 0.00 $18.89 (0.08)% 1.19% (0.04)% 1.15%
November 1, 2002 to October 31, 2003 ............ 0.00 $17.96 0.01% 1.27% 0.00% 1.27%
ADMINISTRATOR CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.90 1.67% 1.22% (0.07)% 1.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $21.98 0.35% 1.18% (0.03)% 1.15%
November 1, 2005 to October 31, 2006 ............ 0.00 $23.93 0.46% 1.22% (0.07)% 1.15%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.82 (0.12)% 1.13% (0.03)% 1.10%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.90 0.03% 1.17% (0.02)% 1.15%
INSTITUTIONAL CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $14.94 1.82% 0.96% (0.06)% 0.90%
November 1, 2006 to October 31, 2007 ............ 0.00 $22.06 0.60% 0.91% (0.01)% 0.90%
November 1, 2005 to October 31, 2006 ............ 0.00 $24.02 0.74% 0.95% (0.05)% 0.90%
November 1, 2004 to October 31, 2005 ............ 0.00 $20.88 0.07% 0.94% (0.04)% 0.90%
July 26, 2004(4) to October 31, 2004 ............ 0.00 $18.91 0.40% 0.96% (0.06)% 0.90%
Portfolio Net Assets at
Total Turnover End of Period
Return(2) Rate(3) (000's omitted)
--------- --------- ---------------
C&B MID CAP VALUE FUND
CLASS A
November 1, 2007 to April 30, 2008 (Unaudited) .. (14.76)% 15% $ 33,220
November 1, 2006 to October 31, 2007 ............ 2.95% 56% $ 50,622
November 1, 2005 to October 31, 2006 ............ 24.44% 39% $ 41,729
November 1, 2004 to October 31, 2005 ............ 13.13% 30% $ 26,795
July 26, 2004(4) to October 31, 2004 ............ 2.00% 31% $ 4,938
CLASS B
November 1, 2007 to April 30, 2008 (Unaudited) .. (15.08)% 15% $ 8,747
November 1, 2006 to October 31, 2007 ............ 2.23% 56% $ 14,293
November 1, 2005 to October 31, 2006 ............ 23.53% 39% $ 15,491
November 1, 2004 to October 31, 2005 ............ 12.28% 30% $ 11,429
July 26, 2004(4) to October 31, 2004 ............ 1.84% 31% $ 2,613
CLASS C
November 1, 2007 to April 30, 2008 (Unaudited) .. (15.03)% 15% $ 10,045
November 1, 2006 to October 31, 2007 ............ 2.18% 56% $ 16,171
November 1, 2005 to October 31, 2006 ............ 23.58% 39% $ 11,523
November 1, 2004 to October 31, 2005 ............ 12.28% 30% $ 6,838
July 26, 2004(4) to October 31, 2004 ............ 1.84% 31% $ 1,081
Class D
November 1, 2007 to April 30, 2008 (Unaudited) .. (14.72)% 15% $315,337
November 1, 2006 to October 31, 2007 ............ 3.12% 56% $634,872
November 1, 2005 to October 31, 2006 ............ 24.60% 39% $611,237
November 1, 2004 to October 31, 2005 ............ 13.29% 30% $469,971
November 1, 2003 to October 31, 2004 ............ 6.18% 31% $498,623
November 1, 2002 to October 31, 2003 ............ 36.76% 18% $301,513
ADMINISTRATOR CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. (14.67)% 15% $ 54,040
November 1, 2006 to October 31, 2007 ............ 3.18% 56% $102,201
November 1, 2005 to October 31, 2006 ............ 24.79% 39% $ 82,402
November 1, 2004 to October 31, 2005 ............ 13.39% 30% $118,690
July 26, 2004(4) to October 31, 2004 ............ 2.05% 31% $ 81,232
INSTITUTIONAL CLASS
November 1, 2007 to April 30, 2008 (Unaudited) .. (14.56)% 15% $ 65,308
November 1, 2006 to October 31, 2007 ............ 3.44% 56% $ 79,559
November 1, 2005 to October 31, 2006 ............ 25.12% 39% $ 55,799
November 1, 2004 to October 31, 2005 ............ 13.71% 30% $ 63,705
July 26, 2004(4) to October 31, 2004 ............ 2.11% 31% $ 17,376
70 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions
Net Asset Net and Unrealized from Net Distributions
Value Per Investment Gain (Loss) Investment from Net
Share Income (Loss) on Investments Income Realized Gains
--------- ------------- -------------- ------------- --------------
COMMON STOCK FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... $22.66 (0.00)(6) (1.61) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $23.84 (0.05)(6) 3.98 0.00 (5.11)
November 1, 2005 to October
31, 2006 ................ $22.97 (0.03)(6) 4.08 0.00 (3.18)
January 1, 2005 to October
31, 2005(8) ............. $22.40 (0.11) 1.06 0.00 (0.38)
January 1, 2004 to December
31, 2004 ................ $21.98 (0.14)(6) 2.21 0.00 (1.65)
January 1, 2003 to December
31, 2003 ................ $15.87 (0.10) 6.21 0.00 0.00
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... $21.10 (0.07)(6) (1.39) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $22.67 (0.20)(6) 3.74 0.00 (5.11)
November 1, 2005 to October
31, 2006 ................ $22.13 (0.20)(6) 3.92 0.00 (3.18)
January 1, 2005 to October
31, 2005(8) ............. $21.74 (0.29) 1.06 0.00 (0.38)
January 1, 2004 to December
31, 2004 ................ $21.53 (0.29)(6) 2.15 0.00 (1.65)
January 1, 2003 to December
31, 2003 ................ $15.67 (0.24) 6.10 0.00 0.00
Class C
November 1, 2007 to April
30, 2008 (Unaudited) .... $21.09 (0.07)(6) (1.39) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $22.67 (0.20)(6) 3.73 0.00 (5.11)
November 1, 2005 to October
31, 2006 ................ $22.13 (0.20)(6) 3.92 0.00 (3.18)
January 1, 2005 to October
31, 2005(8) ............. $21.73 (0.47) 1.25 0.00 (0.38)
January 1, 2004 to December
31, 2004 ................ $21.53 (0.30)(6) 2.15 0.00 (1.65)
January 1, 2003 to December
31, 2003 ................ $15.68 (0.25) 6.10 0.00 0.00
Class Z
November 1, 2007 to April
30, 2008 (Unaudited) .... $23.07 (0.00)(6) (1.64) 0.00 (3.61)
November 1, 2006 to October
31, 2007 ................ $24.18 (0.05)(6) 4.05 0.00 (5.11)
November 1, 2005 to October
31, 2006 ................ $23.25 (0.03)(6) 4.14 0.00 (3.18)
January 1, 2005 to October
31, 2005(8) ............. $22.65 (0.07) 1.05 0.00 (0.38)
January 1, 2004 to December
31, 2004 ................ $22.15 (0.08)(6) 2.23 0.00 (1.65)
January 1, 2003 to December
31, 2003 ................ $15.97 (0.09) 6.27 0.00 0.00
MID CAP GROWTH FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... $ 7.72 (0.02)(6) (0.80) 0.00 (1.31)
November 1, 2006 to October
31, 2007 ................ $ 6.69 (0.04)(6) 1.95 0.00 (0.88)
November 1, 2005 to October
31, 2006 ................ $ 6.37 (0.05) 0.92 0.00 (0.55)
October 1, 2005 to October
31, 2005(5) ............. $ 6.50 0.00(6) (0.13) 0.00 0.00
October 1, 2004 to September
30, 2005 ................ $ 5.84 (0.07)(6) 1.16 0.00 (0.43)
October 1, 2003 to September
30, 2004 ................ $ 5.09 0.02 0.73 0.00 0.00
July 1, 2003 to September
30, 2003(7) ............. $ 4.77 (0.05) 0.37 0.00 0.00
July 1, 2002 to June 30,
2003 .................... $ 4.82 (0.02) (0.03) 0.00 0.00
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... $ 7.24 (0.04)(6) (0.75) 0.00 (1.31)
November 1, 2006 to October
31, 2007 ................ $ 6.37 (0.09)(6) 1.84 0.00 (0.88)
November 1, 2005 to October
31, 2006 ................ $ 6.13 (0.11) 0.90 0.00 (0.55)
October 1, 2005 to October
31, 2005(5) ............. $ 6.26 (0.01)(6) (0.12) 0.00 0.00
October 1, 2004 to September
30, 2005 ................ $ 5.68 (0.12)(6) 1.13 0.00 (0.43)
October 1, 2003 to September
30, 2004 ................ $ 4.99 0.06 0.63 0.00 0.00
July 1, 2003 to September
30, 2003(7) ............. $ 4.68 (0.06) 0.37 0.00 0.00
June 9, 2003(4) to June 30,
2003 .................... $ 4.67 0.01 0.00 0.00 0.00
Class C
November 1, 2007 to April
30, 2008 (Unaudited) .... $ 7.23 (0.04)(6) (0.75) 0.00 (1.31)
November 1, 2006 to October
31, 2007 ................ $ 6.36 (0.09)(6) 1.84 0.00 (0.88)
November 1, 2005 to October
31, 2006 ................ $ 6.13 (0.09) 0.87 0.00 (0.55)
October 1, 2005 to October
31, 2005(5) ............. $ 6.26 (0.01)(6) (0.12) 0.00 0.00
October 1, 2004 to September
30, 2005 ................ $ 5.68 (0.12)(6) 1.13 0.00 (0.43)
October 1, 2003 to September
30, 2004 ................ $ 4.98 0.07 0.63 0.00 0.00
July 1, 2003 to September
30, 2003(7) ............. $ 4.68 (0.06) 0.36 0.00 0.00
June 9, 2003(4) to June 30,
2003 .................... $ 4.67 0.01 0.00 0.00 0.00
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 71
Financial Highlights
Ratio to
Ending Average Net Assets (Annualized)(1)
Net ----------------------------------------
Distributions Asset Net
in Exceess of Value Investment Portfolio Net Assets at
Realized Per Income Gross Expenses Net Total Turnover End of Period
Gains Share (Loss) Expenses Waived Expenses Return(2) Rate(3) (000's omitted)
------------- ------ ---------- -------- -------- -------- --------- --------- ---------------
COMMON STOCK FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $17.44 0.00% 1.36% (0.05)% 1.31% (6.89)% 44% $ 129,450
November 1, 2006 to October
31, 2007 ................ 0.00 $22.66 (0.25)% 1.37% (0.06)% 1.31% 19.74% 58% $ 62,456
November 1, 2005 to October
31, 2006 ................ 0.00 $23.84 (0.15)% 1.34% (0.03)% 1.31% 19.11% 56% $ 64,915
January 1, 2005 to October
31, 2005(8) ............. 0.00 $22.97 (0.48)% 1.44% (0.03)% 1.41% 4.34% 33% $ 62,462
January 1, 2004 to December
31, 2004 ................ 0.00 $22.40 (0.62)% 1.58% (0.04)% 1.54% 9.67% 42% $ 73,612
January 1, 2003 to December
31, 2003 ................ 0.00 $21.98 (0.62)% 1.55% (0.01)% 1.54% 38.50% 42% $ 81,068
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $16.03 (0.80)% 2.11% (0.05)% 2.06% (7.27)% 44% $ 24,283
November 1, 2006 to October
31, 2007 ................ 0.00 $21.10 (1.00)% 2.12% (0.06)% 2.06% 18.86% 58% $ 31,415
November 1, 2005 to October
31, 2006 ................ 0.00 $22.67 (0.90)% 2.09% (0.03)% 2.06% 18.23% 56% $ 34,205
January 1, 2005 to October
31, 2005(8) ............. 0.00 $22.13 (1.23)% 2.20% (0.04)% 2.16% 3.63% 33% $ 34,744
January 1, 2004 to December
31, 2004 ................ 0.00 $21.74 (1.36)% 2.32% (0.04)% 2.28% 8.89% 42% $ 37,908
January 1, 2003 to December
31, 2003 ................ 0.00 $21.53 (1.41)% 2.35% (0.01)% 2.34% 37.40% 42% $ 38,830
Class C
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $16.02 (0.80)% 2.10% (0.04)% 2.06% (7.28)% 44% $ 15,267
November 1, 2006 to October
31, 2007 ................ 0.00 $21.09 (1.00)% 2.12% (0.06)% 2.06% 18.82% 58% $ 18,501
November 1, 2005 to October
31, 2006 ................ 0.00 $22.67 (0.90)% 2.09% (0.03)% 2.06% 18.24% 56% $ 18,885
January 1, 2005 to October
31, 2005(8) ............. 0.00 $22.13 (1.25)% 2.21% (0.04)% 2.17% 3.68% 33% $ 20,177
January 1, 2004 to December
31, 2004 ................ 0.00 $21.73 (1.38)% 2.35% (0.04)% 2.31% 8.84% 42% $ 26,375
January 1, 2003 to December
31, 2003 ................ 0.00 $21.53 (1.41)% 2.35% (0.01)% 2.34% 37.31% 42% $ 34,025
Class Z
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $17.82 (0.03)% 1.51% (0.22)% 1.29% (6.88)% 44% $ 870,957
November 1, 2006 to October
31, 2007 ................ 0.00 $23.07 (0.23)% 1.54% (0.25)% 1.29% 19.75% 58% $1,057,463
November 1, 2005 to October
31, 2006 ................ 0.00 $24.18 (0.13)% 1.51% (0.22)% 1.29% 19.14% 56% $ 991,457
January 1, 2005 to October
31, 2005(8) ............. 0.00 $23.25 (0.38)% 1.47% (0.16)% 1.31% 4.42% 33% $1,009,088
January 1, 2004 to December
31, 2004 ................ 0.00 $22.65 (0.38)% 1.34% (0.04)% 1.30% 9.96% 42% $1,162,236
January 1, 2003 to December
31, 2003 ................ 0.00 $22.15 (0.42)% 1.36% (0.01)% 1.35% 38.70% 42% $1,437,055
MID CAP GROWTH FUND
Class A
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $ 5.59 (0.79)% 1.44% (0.04)% 1.40% (11.30)% 32% $ 104,383
November 1, 2006 to October
31, 2007 ................ 0.00 $ 7.72 (0.60)% 1.42% (0.02)% 1.40% 31.90% 116% $ 128,502
November 1, 2005 to October
31, 2006 ................ 0.00 $ 6.69 (0.69)% 1.48% (0.08)% 1.40% 14.38% 123% $ 103,816
October 1, 2005 to October
31, 2005(5) ............. 0.00 $ 6.37 (0.96)% 1.41% (0.01)% 1.40% (2.00)% 13% $ 107,706
October 1, 2004 to September
30, 2005 ................ 0.00 $ 6.50 (1.19)% 1.42% (0.01)% 1.41% 19.17% 143% $ 111,103
October 1, 2003 to September
30, 2004 ................ 0.00 $ 5.84 (0.44)% 1.50% (0.07)% 1.43% 14.73% 180% $ 93,024
July 1, 2003 to September
30, 2003(7) ............. 0.00 $ 5.09 (1.03)% 1.42% 0.00% 1.42% 6.71% 55% $ 87,980
July 1, 2002 to June 30,
2003 .................... 0.00 $ 4.77 (0.65)% 1.86% (0.37)% 1.49% (1.04)% 142% $ 85,320
Class B
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $ 5.14 (1.55)% 2.19% (0.04)% 2.15% (11.70)% 32% $ 4,601
November 1, 2006 to October
31, 2007 ................ 0.00 $ 7.24 (1.36)% 2.17% (0.02)% 2.15% 30.86% 116% $ 7,109
November 1, 2005 to October
31, 2006 ................ 0.00 $ 6.37 (1.43)% 2.23% (0.08)% 2.15% 13.58% 123% $ 7,482
October 1, 2005 to October
31, 2005(5) ............. 0.00 $ 6.13 (1.71)% 2.16% (0.01)% 2.15% (2.08)% 13% $ 8,355
October 1, 2004 to September
30, 2005 ................ 0.00 $ 6.26 (2.00)% 2.17% (0.01)% 2.16% 18.25% 143% $ 8,829
October 1, 2003 to September
30, 2004 ................ 0.00 $ 5.68 (0.64)% 2.26% (0.08)% 2.18% 13.83% 180% $ 6,877
July 1, 2003 to September
30, 2003(7) ............. 0.00 $ 4.99 (1.78)% 2.17% 0.00% 2.17% 6.62% 55% $ 5,216
June 9, 2003(4) to June 30,
2003 .................... 0.00 $ 4.68 3.82% 2.22% (0.08)% 2.14% 0.21% 142% $ 4,599
Class C
November 1, 2007 to April
30, 2008 (Unaudited) .... 0.00 $ 5.13 (1.54)% 2.18% (0.03)% 2.15% (11.71)% 32% $ 2,630
November 1, 2006 to October
31, 2007 ................ 0.00 $ 7.23 (1.36)% 2.17% (0.02)% 2.15% 30.91% 116% $ 2,693
November 1, 2005 to October
31, 2006 ................ 0.00 $ 6.36 (1.45)% 2.23% (0.08)% 2.15% 13.40% 123% $ 1,950
October 1, 2005 to October
31, 2005(5) ............. 0.00 $ 6.13 (1.71)% 2.16% (0.01)% 2.15% (2.08)% 13% $ 1,648
October 1, 2004 to September
30, 2005 ................ 0.00 $ 6.26 (2.00)% 2.17% (0.01)% 2.16% 18.25% 143% $ 1,657
October 1, 2003 to September
30, 2004 ................ 0.00 $ 5.68 (0.70)% 2.26% (0.08)% 2.18% 14.06% 180% $ 1,034
July 1, 2003 to September
30, 2003(7) ............. 0.00 $ 4.98 (1.78)% 2.17% 0.00% 2.17% 6.41% 55% $ 607
June 9, 2003(4) to June 30,
2003 .................... 0.00 $ 4.68 4.05% 2.22% (0.10)% 2.12% 0.21% 142% $ 493
72 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Realized Distributions Distributions
Net Asset Net and Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Realized
Share Income (Loss) Investments Income Gains
--------- ------------- -------------- ------------- -------------
MID CAP GROWTH FUND (continued)
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. $ 7.68 (0.03)(6) (0.79) 0.00 (1.31)
November 1, 2006 to October 31, 2007 ............ $ 6.67 (0.05)(6) 1.94 0.00 (0.88)
November 1, 2005 to October 31, 2006 ............ $ 6.37 (0.07) 0.92 0.00 (0.55)
October 1, 2005 to October 31, 2005(5) .......... $ 6.50 (0.01)(6) (0.12) 0.00 0.00
April 11, 2005(4) to September 30, 2005 ......... $ 5.95 (0.05)(6) 0.60 0.00 0.00
Administrator Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. $ 5.41 (0.00) 0.18 0.00 0.00
Institutional Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. $ 5.41 (0.00) 0.18 0.00 0.00
SMALL CAP GROWTH FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .. $16.02 (0.05)(6) (1.82) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $14.03 (0.13)(6) 3.66 0.00 (1.54)
November 1, 2005 to October 31, 2006 ............ $12.19 (0.16) 2.93 0.00 (0.93)
October 1, 2005 to October 31, 2005(5) .......... $12.53 (0.02) (0.32) 0.00 0.00
October 1, 2004 to September 30, 2005 ........... $10.67 (0.13)(6) 2.18 0.00 (0.19)
October 1, 2003 to September 30, 2004 ........... $ 9.44 (0.23) 1.46 0.00 0.00
July 1, 2003 to September 30, 2003(7) ........... $ 8.93 (0.02) 0.53 0.00 0.00
Class B
November 1, 2007 to April 30, 2008 (Unaudited) .. $15.41 (0.10)(6) (1.70) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $13.65 (0.23)(6) 3.53 0.00 (1.54)
November 1, 2005 to October 31, 2006 ............ $11.97 (0.28) 2.89 0.00 (0.93)
October 1, 2005 to October 31, 2005(5) .......... $12.31 (0.02) (0.32) 0.00 0.00
October 1, 2004 to September 30, 2005 ........... $10.57 (0.22)(6) 2.15 0.00 (0.19)
October 1, 2003 to September 30, 2004 ........... $ 9.41 (0.25) 1.41 0.00 0.00
July 1, 2003 to September 30, 2003(7) ........... $ 8.93 (0.04) 0.52 0.00 0.00
Class C
November 1, 2007 to April 30, 2008 (Unaudited)... $15.43 (0.10)(6) (1.70) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $13.66 (0.23)(6) 3.54 0.00 (1.54)
November 1, 2005 to October 31, 2006 ............ $11.98 (0.25) 2.86 0.00 (0.93)
October 1, 2005 to October 31, 2005(5) .......... $12.33 (0.02) (0.33) 0.00 0.00
October 1, 2004 to September 30, 2005 ........... $10.58 (0.22)(6) 2.16 0.00 (0.19)
October 1, 2003 to September 30, 2004 ........... $ 9.42 (0.22) 1.38 0.00 0.00
July 1, 2003 to September 30, 2003(7) ........... $ 8.93 (0.02) 0.51 0.00 0.00
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. $15.93 (0.06)(6) (1.79) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $13.99 (0.16)(6) 3.64 0.00 (1.54)
November 1, 2005 to October 31, 2006 ............ $12.18 (0.19) 2.93 0.00 (0.93)
October 1, 2005 to October 31, 2005(5) .......... $12.52 (0.01) (0.33) 0.00 0.00
April 11, 2005(4) to September 30, 2005 ......... $11.06 (0.07)(6) 1.53 0.00 0.00
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .. $16 17 (0.04)(6) (1.84) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $14.12 (0.10)(6) 3.69 0.00 (1.54)
November 1, 2005 to October 31, 2006 ............ $12.24 (0.13) 2.94 0.00 (0.93)
October 1, 2005 to October 31, 2005(5) .......... $12.59 (0.01) (0.34) 0.00 0.00
October 1, 2004 to September 30, 2005 ........... $10.70 (0.11)(6) 2.19 0.00 (0.19)
October 1, 2003 to September 30, 2004 ........... $ 9.44 (0.21) 1.47 0.00 0.00
July 1, 2003 to September 30, 2003(7) ........... $ 8.94 (0.02) 0.52 0.00 0.00
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) .. $16.30 (0.03)(6) (1.85) 0.00 (3.00)
November 1, 2006 to October 31, 2007 ............ $14.19 (0.06)(6) 3.71 0.00 (1.54)
November 1, 2005 to October 31, 2006 ............ $12.26 (0.11) 2.97 0.00 (0.93)
October 1, 2005 to October 31, 2005(5) .......... $12.61 (0.01) (0.34) 0.00 0.00
April 11, 2005(4) to September 30, 2005 ......... $11.10 (0.04)(6) 1.55 0.00 0.00
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 73
Financial Highlights
Ratio to
Average Net Assets (Annualized)(1)
-----------------------------------------
Distributions Ending Net
in Exceess Net Asset Investment
of Realized Value Per Income Gross Expenses Net
Gains Share (Loss) Expenses Waived Expenses
------------- --------- ---------- -------- -------- --------
MID CAP GROWTH FUND (continued)
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $ 5.55 (0.94)% 1.59% (0.05)% 1.54%
November 1, 2006 to October 31, 2007 ............ 0.00 $ 7.68 (0.78)% 1.59% (0.02)% 1.57%
November 1, 2005 to October 31, 2006 ............ 0.00 $ 6.67 (0.84)% 1.65% (0.08)% 1.57%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $ 6.37 (1.13)% 1.58% (0.01)% 1.57%
April 11, 2005(4) to September 30, 2005 ......... 0.00 $ 6.50 (1.69)% 1.56% (0.01)% 1.55%
Administrator Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. 0.00 $ 5.59 (0.60)% 1.25% (0.10)% 1.15%
Institutional Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. 0.00 $ 5.59 (0.35)% 0.97% (0.07)% 0.90%
SMALL CAP GROWTH FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.15 (0.92)% 1.57% (0.17)% 1.40%
November 1, 2006 to October 31, 2007 ............ 0.00 $16.02 (0.91)% 1.55% (0.15)% 1.40%
November 1, 2005 to October 31, 2006 ............ 0.00 $14.03 (1.15)% 1.61% (0.21)% 1.40%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.19 (1.27)% 1.56% (0.16)% 1.40%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.53 (1.14)% 1.58% (0.18)% 1.40%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.67 (1.08)% 1.69% (0.29)% 1.40%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.44 (1.13)% 1.69% (0.29)% 1.40%
Class B
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $10.61 (1.67)% 2.32% (0.17)% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $15.41 (1.70)% 2.30% (0.15)% 2.15%
November 1, 2005 to October 31, 2006 ............ 0.00 $13.65 (1.90)% 2.36% (0.21)% 2.15%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $11.97 (2.02)% 2.31% (0.16)% 2.15%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.31 (1.90)% 2.31% (0.16)% 2.15%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.57 (1.86)% 2.48% (0.33)% 2.15%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.41 (1.88)% 2.43% (0.28)% 2.15%
Class C
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $10.63 (1.67)% 2.29% (0.14)% 2.15%
November 1, 2006 to October 31, 2007 ............ 0.00 $15.43 (1.66)% 2.30% (0.15)% 2.15%
November 1, 2005 to October 31, 2006 ............ 0.00 $13.66 (1.90)% 2.36% (0.21)% 2.15%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $11.98 (2.02)% 2.31% (0.16)% 2.15%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.33 (1.90)% 2.31% (0.16)% 2.15%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.58 (1.86)% 2.48% (0.33)% 2.15%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.42 (1.91)% 2.47% (0.32)% 2.15%
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.08 (1.07)% 1.72% (0.17)% 1.55%
November 1, 2006 to October 31, 2007 ............ 0.00 $15.93 (1.09)% 1.72% (0.15)% 1.57%
November 1, 2005 to October 31, 2006 ............ 0.00 $13.99 (1.32)% 1.78% (0.21)% 1.57%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.18 (1.44)% 1.73% (0.16)% 1.57%
April 11, 2005(4) to September 30, 2005 ......... 0.00 $12.52 (1.33)% 1.72% (0.15)% 1.57%
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.29 (0.72)% 1.39% (0.19)% 1.20%
November 1, 2006 to October 31, 2007 ............ 0.00 $16.17 (0.71)% 1.37% (0.17)% 1.20%
November 1, 2005 to October 31, 2006 ............ 0.00 $14.12 (0.95)% 1.43% (0.23)% 1.20%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.24 (1.07)% 1.38% (0.18)% 1.20%
October 1, 2004 to September 30, 2005 ........... 0.00 $12.59 (0.94)% 1.37% (0.17)% 1.20%
October 1, 2003 to September 30, 2004 ........... 0.00 $10.70 (1.20)% 1.54% (0.34)% 1.20%
July 1, 2003 to September 30, 2003(7) ........... 0.00 $ 9.44 (0.99)% 1.46% (0.26)% 1.20%
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) .. 0.00 $11.42 (0.42)% 1.12% (0.22)% 0.90%
November 1, 2006 to October 31, 2007 ............ 0.00 $16.30 (0.41)% 1.10% (0.20)% 0.90%
November 1, 2005 to October 31, 2006 ............ 0.00 $14.19 (0.64)% 0.64)% (0.26)% 0.90%
October 1, 2005 to October 31, 2005(5) .......... 0.00 $12.26 (0.77)% 1.11% (0.21)% 0.90%
April 11, 2005(4) to September 30, 2005 ......... 0.00 $12.61 (0.65)% 0.65)% (0.23)% 0.92%
Net Assets
at
End of
Portfolio Period
Total Turnover (000's
Return(2) Rate(3) omitted)
--------- --------- ----------
MID CAP GROWTH FUND (continued)
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. (11.36)% 32% $ 36,525
November 1, 2006 to October 31, 2007 ............ 31.66% 116% $ 44,067
November 1, 2005 to October 31, 2006 ............ 14.05% 123% $ 37,968
October 1, 2005 to October 31, 2005(5) .......... (2.00)% 13% $ 50,319
April 11, 2005(4) to September 30, 2005 ......... 9.24% 143% $ 52,005
Administrator Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. (11.30)% 32% $ 11
Institutional Class
March 31, 2008(4) to April 30, 2008 (Unaudited).. (11.30)% 32% $ 11
SMALL CAP GROWTH FUND
Class A
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.34)% 41% $174,011
November 1, 2006 to October 31, 2007 ............ 27.63% 122% $199,396
November 1, 2005 to October 31, 2006 ............ 23.82% 142% $110,813
October 1, 2005 to October 31, 2005(5) .......... (2.71)% 10% $ 98,728
October 1, 2004 to September 30, 2005 ........... 19.31% 149% $102,926
October 1, 2003 to September 30, 2004 ........... 13.03% 171% $ 43,192
July 1, 2003 to September 30, 2003(7) ........... 5.71% 47% $ 83,152
Class B
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.61)% 41% $ 8,828
November 1, 2006 to October 31, 2007 ............ 26.62% 122% $ 14,311
November 1, 2005 to October 31, 2006 ............ 22.86% 142% $ 20,226
October 1, 2005 to October 31, 2005(5) .......... (2.76)% 10% $ 20,966
October 1, 2004 to September 30, 2005 ........... 18.46% 149% $ 21,940
October 1, 2003 to September 30, 2004 ........... 12.22% 171% $ 702
July 1, 2003 to September 30, 2003(7) ........... 5.38% 47% $ 114
Class C
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.58)% 41% $ 8,000
November 1, 2006 to October 31, 2007 ............ 26.68% 122% $ 10,187
November 1, 2005 to October 31, 2006 ............ 22.84% 142% $ 6,543
October 1, 2005 to October 31, 2005(5) .......... (2.84)% 10% $ 6,008
October 1, 2004 to September 30, 2005 ........... 18.42% 149% $ 6,271
October 1, 2003 to September 30, 2004 ........... 12.31% 171% $ 201
July 1, 2003 to September 30, 2003(7) ........... 5.49% 47% $ 82
Class Z
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.31)% 41% $ 30,761
November 1, 2006 to October 31, 2007 ............ 27.32% 122% $ 43,069
November 1, 2005 to October 31, 2006 ............ 23.59% 142% $ 37,082
October 1, 2005 to October 31, 2005(5) .......... (2.72)% 10% $ 35,304
April 11, 2005(4) to September 30, 2005 ......... 13.20% 149% $ 37,511
Administrator Class
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.22)% 41% $ 90,521
November 1, 2006 to October 31, 2007 ............ 27.90% 122% $110,917
November 1, 2005 to October 31, 2006 ............ 24.07% 142% $ 62,302
October 1, 2005 to October 31, 2005(5) .......... (2.78)% 10% $ 53,953
October 1, 2004 to September 30, 2005 ........... 19.54% 149% $ 55,961
October 1, 2003 to September 30, 2004 ........... 13.35% 171% $ 33,309
July 1, 2003 to September 30, 2003(7) ........... 5.59% 47% $ 335
Institutional Class
November 1, 2007 to April 30, 2008 (Unaudited) .. (17.07)% 41% $ 92,435
November 1, 2006 to October 31, 2007 ............ 28.22% 122% $ 85,664
November 1, 2005 to October 31, 2006 ............ 24.46% 142% $ 55,921
October 1, 2005 to October 31, 2005(5) .......... (2.78)% 10% $ 31,430
April 11, 2005(4) to September 30, 2005 ......... 13.60% 149% $ 31,416
74 Wells Fargo Advantage Small and Mid Cap Stock Funds
Financial Highlights
Beginning Net Net Realized Distributions
Net Asset Investment and Unrealized from Net Distributions Distributions
Value Per Income Gain (Loss) Investment from Net in Exceess of
Share (Loss) on Investments Income Realized Gains Realized Gains
--------- ---------- -------------- ------------- -------------- --------------
SMALL CAP OPPORTUNITIES FUND
Administrator Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $39.68 0.02(6) (3.06) (0.10) (4.89) 0.00
November 1, 2006 to October 31, 2007.... $38.56 0.11 6.99 0.00 (5.98) 0.00
November 1, 2005 to October 31, 2006.... $33.97 (0.04) 7.30 0.00 (2.67) 0.00
October 1, 2005 to October 31, 2005(5).. $34.93 (0.01) (0.95) 0.00 0.00 0.00
October 1, 2004 to September 30, 2005... $33.46 (0.09) 6.05 0.00 (4.49) 0.00
October 1, 2003 to September 30, 2004... $27.57 (0.08) 6.93 0.00 (0.96) 0.00
October 1, 2002 to September 30, 2003... $22.70 (0.13) 6.32 0.00 (1.32) 0.00
SMALL CAP VALUE FUND
Class A
November 1, 2007 to April 30, 2008
(Unaudited).......................... $36.28 (0.06)(6) (3.30) (0.01) (4.78) 0.00
November 1, 2006 to October 31, 2007.... $32.63 (0.15)(6) 6.76 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $31.17 (0.04) 4.61 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $29.19 (0.18) 2.67 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $27.40 (0.27)(6) 5.51 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.92 (0.12)(6) 9.26 (0.01) (0.65) 0.00
Class B
November 1, 2007 to April 30, 2008
(Unaudited).......................... $33.98 (0.16)(6) (3.09) 0.00 (4.78) 0.00
November 1, 2006 to October 31, 2007.... $30.96 (0.38)(6) 6.36 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $29.92 (0.35) 4.50 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $28.21 (0.40) 2.62 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $26.79 (0.47)(6) 5.34 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.66 (0.29)(6) 9.08 (0.01) (0.65) 0.00
Class C
November 1, 2007 to April 30, 2008
(Unaudited).......................... $34.07 (0.15)(6) (3.11) 0.00 (4.78) 0.00
November 1, 2006 to October 31, 2007.... $31.03 (0.38)(6) 6.38 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $29.99 (0.34) 4.49 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $28.27 (0.44) 2.67 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $26.83 (0.47)(6) 5.36 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.68 (0.28)(6) 9.09 (0.01) (0.65) 0.00
Class Z
November 1, 2007 to April 30, 2008
(Unaudited).......................... $36.73 (0.05)(6) (3.35) (0.01) (4.78) 0.00
November 1, 2006 to October 31, 2007.... $32.98 (0.13)(6) 6.84 0.00 (2.96) 0.00
November 1, 2005 to October 31, 2006.... $31.45 (0.02) 4.66 0.00 (3.11) 0.00
January 1, 2005 to October 31, 2005(8).. $29.40 (0.15) 2.71 0.00 (0.51) 0.00
January 1, 2004 to December 31, 2004.... $27.53 (0.22)(6) 5.54 0.00 (3.45) 0.00
January 1, 2003 to December 31, 2003.... $18.98 (0.09)(6) 9.30 (0.01) (0.65) 0.00
Institutional Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $36.77 0.21 (3.35) (0.17) (4.78) 0.00
July 31, 2007(4) to October 31, 2007.... $34.30 0.01(6) 2.46 0.00 0.00 0.00
The accompanying notes are an integral part of these financial statements.
Wells Fargo Advantage Small and Mid Cap Stock Funds 75
Financial Highlights
Ratio to Average
Net Assets (Annualized)(1)
----------------------------------------
Ending Net
Net Asset Investment Portfolio Net Assets at
Value Per Income Gross Expenses Net Total Turnover End of Period
Share (Loss) Expenses Waived Expenses Return(2) Rate(3) (000's omitted)
--------- ---------- -------- -------- -------- --------- --------- ---------------
SMALL CAP OPPORTUNITIES FUND
Administrator Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $31.65 0.14% 1.30% (0.10)% 1.20% (7.83)% 34% $ 765,055
November 1, 2006 to October 31, 2007.... $39.68 0.29% 1.33% (0.13)% 1.20% 20.94% 65% $ 910,162
November 1, 2005 to October 31, 2006.... $38.56 (0.11)% 1.34% (0.14)% 1.20% 22.57% 79% $ 800,078
October 1, 2005 to October 31, 2005(5).. $33.97 (0.35)% 1.33% (0.13)% 1.20% (2.78)% 7% $ 704,714
October 1, 2004 to September 30, 2005... $34.93 (0.28)% 1.29% (0.09)% 1.20% 18.76% 107% $ 725,651
October 1, 2003 to September 30, 2004... $33.46 (0.27)% 1.30% (0.10)% 1.20% 25.25% 113% $ 534,600
October 1, 2002 to September 30, 2003... $27.57 (0.57)% 1.31% (0.11)% 1.20% 28.47% 152% $ 381,786
SMALL CAP VALUE FUND
Class A
November 1, 2007 to April 30, 2008
(Unaudited).......................... $28.13 (0.39)% 1.43% 0.00% 1.44% (9.32)% 11% $ 606,374
November 1, 2006 to October 31, 2007.... $36.28 (0.45)% 1.44% 0.00% 1.44% 21.87% 48% $ 715,334
November 1, 2005 to October 31, 2006.... $32.63 (0.15)% 1.44% (0.01)% 1.43% 15.44% 33% $ 656,151
January 1, 2005 to October 31, 2005(8).. $31.17 (0.70)% 1.50% (0.03)% 1.47% 8.66% 33% $ 606,811
January 1, 2004 to December 31, 2004.... $29.19 (0.96)% 1.57% (0.04)% 1.53% 19.89% 34% $ 598,226
January 1, 2003 to December 31, 2003.... $27.40 (0.55)% 1.56% (0.02)% 1.54% 48.49% 30% $ 673,580
Class B
November 1, 2007 to April 30, 2008
(Unaudited).......................... $25.95 (1.15)% 2.18% 0.00% 2.19% (9.65)% 11% $ 94,607
November 1, 2006 to October 31, 2007.... $33.98 (1.20)% 2.19% 0.00% 2.19% 20.94% 48% $ 123,492
November 1, 2005 to October 31, 2006.... $30.96 (0.91)% 2.19% (0.01)% 2.18% 14.61% 33% $ 128,970
January 1, 2005 to October 31, 2005(8).. $29.92 (1.46)% 2.26% (0.02)% 2.24% 7.99% 33% $ 133,825
January 1, 2004 to December 31, 2004.... $28.21 (1.71)% 2.33% (0.05)% 2.28% 18.95% 34% $ 136,825
January 1, 2003 to December 31, 2003.... $26.79 (1.37)% 2.36% (0.01)% 2.35% 47.28% 30% $ 126,152
Class C
November 1, 2007 to April 30, 2008
(Unaudited).......................... $26.03 (1.14)% 2.18% 0.00% 2.19% (9.66)% 11% $ 119,358
November 1, 2006 to October 31, 2007.... $34.07 (1.20)% 2.19% 0.00% 2.19% 20.96% 48% $ 146,997
November 1, 2005 to October 31, 2006.... $31.03 (0.91)% 2.19% (0.01)% 2.18% 14.57% 33% $ 143,872
January 1, 2005 to October 31, 2005(8).. $29.99 (1.46)% 2.26% (0.02)% 2.24% 8.01% 33% $ 146,162
January 1, 2004 to December 31, 2004.... $28.27 (1.71)% 2.34% (0.05)% 2.29% 19.00% 34% $ 157,329
January 1, 2003 to December 31, 2003.... $26.83 (1.32)% 2.34% (0.02)% 2.32% 47.34% 30% $ 158,942
Class Z
November 1, 2007 to April 30, 2008
(Unaudited).......................... $28.54 (0.33)% 1.58% (0.22)% 1.36% (9.29)% 11% $2,383,378
November 1, 2006 to October 31, 2007.... $36.73 (0.37)% 1.61% (0.25)% 1.36% 21.95% 48% $3,183,124
November 1, 2005 to October 31, 2006.... $32.98 (0.05)% 1.61% (0.25)% 1.36% 15.53% 33% $2,571,031
January 1, 2005 to October 31, 2005(8).. $31.45 (0.57)% 1.58% (0.24)% 1.34% 8.83% 33% $1,926,165
January 1, 2004 to December 31, 2004.... $29.40 (0.79)% 1.40% (0.04)% 1.36% 20.09% 34% $1,359,158
January 1, 2003 to December 31, 2003.... $27.53 (0.41)% 1.42% (0.02)% 1.40% 48.70% 30% $1,167,094
Institutional Class
November 1, 2007 to April 30, 2008
(Unaudited).......................... $28.48 0.16% 0.99% (0.04)% 0.95% (9.12)% 11% $ 412,650
July 31, 2007(4) to October 31, 2007.... $36.77 0.13% 0.97% (0.03)% 0.94% 7.20% 48% $ 8,707
76 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The Trust commenced operations on November 8, 1999, and at April 30,
2008, was comprised of 111 separate series (each, a "Fund", collectively, the
"Funds"). These financial statements present the C&B Mid Cap Value Fund, Common
Stock Fund, Mid Cap Growth Fund, Small Cap Growth Fund, Small Cap Opportunities
Fund, and Small Cap Value Fund. Each Fund is a diversified series of the Trust.
The separate classes of shares offered by each Fund differ principally in
applicable sales charges and distribution, shareholder servicing and
administration fees. Shareholders of each class bear certain expenses that
pertain to that particular class. All shareholders bear the common expenses of a
Fund, earn income from the portfolio, and are allocated unrealized gains and
losses pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are determined separately for each
class based on income and expenses allocable to each class. Realized gains and
losses are allocated to each class pro rata based upon the net assets of each
class on the date realized. Differences in per share dividend rates generally
result from the relative weightings of pro rata income and realized gain
allocations and from differences in separate class expenses, including
distribution, shareholder servicing, and administration fees.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed
in the preparation of the financial statements of the Trust, are in conformity
with accounting principles generally accepted in the United States of America
("GAAP") for investment companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Certain Funds of the Trust may invest a substantial portion of their assets in
an industry, sector or foreign country as is discussed in the Performance
Highlights for those Funds. Such Funds may be more affected by changes in that
industry, sector or foreign country than they would be absent the concentration
of investments.
Under the Trust's organizational documents, their officers and directors are
indemnified against certain liabilities that may arise out of performance of
their duties to the Trust. Additionally, in the normal course of business, the
Trust may enter into contracts with service providers that contain a variety of
indemnification clauses. The Trust's maximum exposure under these arrangements
is dependent on future claims that may be made against the Funds and, therefore,
cannot be estimated; however, based on experience, the risk of loss from such
claims is considered remote.
SECURITY VALUATION
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. ("NASDAQ") are valued at the NASDAQ Official Closing
Price ("NOCP"), and if no NOCP is available, then at the last reported sales
price. If no sales price is shown on NASDAQ, the bid price will be used. In the
absence of any sale of securities listed on the NASDAQ, and in the case of other
securities, including U.S. Government obligations, but excluding debt securities
maturing in 60 days or less, the price will be deemed "stale" and the valuations
will be determined in accordance with the Funds' Fair Valuation Procedures.
Investments in the Underlying Funds are valued at the closing net asset value
per share of each Underlying Fund on the valuation date.
Securities denominated in foreign currencies are translated into U.S. dollars
using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the close
of the New York Stock Exchange and therefore may not fully reflect trading or
events that occur after the close of the principal exchange in which the foreign
investments are traded but before the close of the New York Stock Exchange. If
such trading or events are expected to materially affect the value of the
investments, then those investments are fair valued following procedures
approved by the
Wells Fargo Advantage Small and Mid Cap Stock Funds 77
Notes to Financial Statements
Board of Trustees. These procedures take into account multiple factors including
movements in U.S. securities markets after foreign exchanges close. Depending on
market activity, such fair valuations may be frequent. In light of the judgment
involved in fair value decisions, there can be no assurance that a fair value
assigned to a particular security is accurate. Such fair value pricing may
result in NAVs that are higher or lower than NAVs based on the closing price or
latest quoted bid price.
Debt securities with original maturities of 60 days or less and other short-term
debt securities in which cash collateral received for securities loaned may be
invested, generally are valued at amortized cost. The amortized cost method
involves valuing a security at its cost, plus accretion of discount or minus
amortization of premium over the period until maturity, which approximates
market 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.
AFFILIATE SECURITIES
An affiliate company is a company in which a Fund has ownership of at least 5%
of the voting securities. Companies that are affiliates of a Fund at period-end
are noted in the Fund's Portfolio of Investments. The following such positions
were held by the Small Cap Value Fund at April 30, 2008:
% of Voting
Market Unrealized Dividend Shares
Security Name Quantity Cost Value Gain/Loss Income Outstanding
-------------------------------------- ------------- -------------- --------------- --------------- ------------- -----------
Apex Silver Mines Limited 5,174,700.00 $72,970,958.07 $ 52,005,735.00 $(20,965,223.07) $ 0 8.78%
Argo Group International Holdings Ltd 1,706,900.00 73,585,044.61 61,141,158.00 (12,443,886.61) 0 5.56%
Capstead Mortgage Corporation 2,881,800.00 36,344,500.65 37,175,220.00 830,719.35 1,206,492.00 5.82%
Champion Enterprises Incorporated 7,741,200.00 72,971,189.48 79,889,184.00 6,917,994.52 0 9.98%
Chesapeake Corporation 1,114,500.00 16,259,861.39 4,881,510.00 (11,378,351.39) 0 5.57%
China Grentech Corporation Limited Adr 3,124,194.00 37,212,916.29 14,777,437.62 (22,435,478.67) 0 12.50%
Constar International Incorporated 1,157,940.00 8,823,251.05 3,392,764.20 (5,430,486.85) 0 8.93%
Covenant Transportation Group
Incorporated 1,110,200.00 16,896,448.39 6,361,446.00 (10,535,002.39) 0 9.51%
Cray Incorporated 3,338,600.00 34,470,925.24 20,799,478.00 (13,671,447.24) 0 10.24%
Credence Systems Corporation 7,274,300.00 37,271,246.37 7,565,272.00 (29,705,974.37) 0 7.12%
Cross Country Healthcare Incorporated 2,517,800.00 45,834,831.02 30,112,888.00 (15,721,943.02) 0 8.12%
Empire Resorts Incorporated 1,879,800.00 12,343,890.27 5,056,662.00 (7,287,228.27) 0 6.33%
Fleetwood Enterprises Incorporated 6,814,800.00 57,231,728.45 23,511,060.00 (33,720,668.45) 0 10.61%
Gentiva Health Services Incorporated 1,432,100.00 24,270,593.40 31,133,854.00 6,863,260.60 0 5.04%
Global Industries Limited 6,301,400.00 75,979,490.73 100,570,344.00 24,590,853.27 0 5.47%
Intermec Incorporated 3,462,300.00 65,190,054.10 73,123,776.00 7,933,721.90 0 5.68%
Interoil Corporation 2,794,900.00 63,084,443.37 52,795,661.00 (10,288,782.37) 0 9.01%
Intertape Polymer group Incorporated 8,618,150.00 51,055,686.45 20,252,652.50 (30,803,033.95) 0 14.62%
McMoran Exploration Company 3,612,400.00 47,170,196.15 99,052,008.00 51,881,811.85 0 6.50%
Mrv Communications Incorporated 11,120,100.00 30,827,065.41 17,458,557.00 (13,368,508.41) 0 7.08%
Newpark Resources Incorporated 8,328,300.00 49,003,450.19 45,722,367.00 (3,281,083.19) 0 9.32%
Nymagic Incorporated 506,100.00 13,952,325.25 11,513,775.00 (2,438,550.25) 61,544.00 5.81%
Orasure Technologies Incorporated 4,996,800.00 41,211,206.89 32,279,328.00 (8,931,878.89) 0 10.67%
OSI Systems Incorporated 1,451,400.00 27,623,193.82 35,486,730.00 7,863,536.18 0 8.22%
Palm Harbor Homes Incorporated 1,192,800.00 11,612,244.62 10,270,008.00 (1,342,236.62) 0 5.22%
Phi Incorporated 773,500.00 18,579,807.96 29,060,395.00 10,480,587.04 0 6.22%
Power-One Incorporated 5,970,300.00 37,219,709.93 17,851,197.00 (19,368,512.93) 0 6.83%
78 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
Market Unrealized Dividend % of Shares
Security Name Quantity Cost Value Gain/Loss Income Outstanding
------------------------------------- ------------ -------------- --------------- --------------- ----------- -----------
Prestige Brands Holdings Incorporated 3,442,100.00 $40,419,038.27 $ 30,910,058.00 $ (9,508,980.27) $ 0 6.88%
Randgold Resources Limited Adr 4,163,300.00 58,593,827.58 189,513,416.00 130,919,588.42 544,116.00 5.46%
RH Donnelley Corporation 3,513,400.00 64,258,402.05 16,829,186.00 (47,429,216.05) 0 5.11%
Skyline Corporation 461,700.00 14,114,932.02 12,705,984.00 (1,408,948.02) 115,776.00 5.50%
US Concrete Incorporated 2,920,600.00 21,159,729.19 9,637,980.00 (11,521,749.19) 0 7.34%
Webco Industries Incorporated 100,364.50 5,859,328.43 13,549,207.50 7,689,879.07 0 14.12%
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 using the interest method.
Dividend income is recognized on the ex-dividend date, except for certain
dividends from foreign securities, which are recorded as soon as the Fund is
informed of the ex-dividend date. Dividend income from foreign securities is
recorded net of foreign taxes withheld where recovery of such taxes is not
assured.
FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. Assets, including
investment securities, and liabilities denominated in foreign currency are
translated into U.S. dollars at the prevailing rates of exchange at the date of
valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting from changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the changes
in net assets resulting from changes in market prices of securities at fiscal
period-end are not separately presented. Such changes are recorded with net
realized and unrealized gain from investments. Gains and losses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, if any, is declared and distributed to shareholders
annually. Distributions to shareholders from net realized capital gains, if any,
are declared and distributed at least annually.
For federal income tax purposes, a Fund may designate as capital gains
distributions the earnings and profits distributed to shareholders on the
redemption of fund shares during the year.
Distributions are based on amounts calculated in accordance with the applicable
federal income tax regulations, which may differ from GAAP. The timing and
character of distributions made during the period from net investment income or
net realized gains may also differ from their ultimate characterization for
federal income tax purposes. To the extent that these differences are permanent
in nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment. Temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It is
the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined under Subchapter M of the Internal Revenue Code
(the "Code"), and to make distributions of 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 at April 30, 2008.
Wells Fargo Advantage Small and Mid Cap Stock Funds 79
Notes to Financial Statements
Management has analyzed the Fund's tax positions taken on federal income tax
returns for all open tax years and has concluded that as of April 30, 2008, no
provision for income tax would be required in the Fund's financial statements.
The Fund's federal and state income and federal excise tax returns for tax years
for which the applicable statutes of limitations have not expired (open tax
years: September 30, 2004; October 31, 2004; December 31, 2004; September 30,
2005; October 31, 2005; October 31, 2006; October 31, 2007) are subject to
examination by the Internal Revenue Service and state departments of revenue.
At October 31, 2007, the Funds' prior fiscal year end, net capital loss
carryforwards, which are available to offset future net realized capital gain,
were:
Capital Loss
FUND Expiration Year Carryforwards
--------------------- --------------- -------------
MID CAP GROWTH FUND 2008 $ 2,795,089
2009 139,021
SMALL CAP GROWTH FUND 2008 7,031,907
2009 4,946,742
SMALL CAP VALUE FUND 2010 27,035,733
2011 1,040,222
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts to protect against a
possible loss resulting from an adverse change in the relationship between
foreign currencies and the U.S. dollar, or between foreign currencies. A forward
contract is an agreement between two counterparties for future delivery or
receipt of currency at a specified price. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Realized gains or losses are recognized when the
transaction is completed. Contracts which have been offset but have not reached
their settlement date are included in unrealized gains and losses.
REPURCHASE AGREEMENTS
The Funds may invest in repurchase agreements and may participate in pooled
repurchase agreement transactions with other funds advised by Wells Fargo Funds
Management, LLC. The repurchase agreements must be fully collateralized based on
values that are marked to market daily. The collateral may be held by an agent
bank under a tri-party agreement. It is the custodian's responsibility to value
collateral daily and to take action to obtain additional collateral as necessary
to maintain market value equal to or greater than the resale price. The
repurchase agreements are collateralized by instruments such as U.S. Treasury,
federal agency, or high-grade corporate obligations. There could be potential
loss to a Fund in the event that such Fund is delayed or prevented from
exercising its rights to dispose of the collateral, including the risk of a
possible decline in the value of the underlying obligations during the period in
which a Fund seeks to assert its rights.
SECURITY LOANS
The Funds may loan securities in return for securities, irrevocable letters of
credit or cash collateral, which is invested in various short-term fixed income
securities. A Fund may receive compensation for lending securities in the form
of fees or by retaining a portion of interest on the investment securities or
cash received as collateral. A Fund also continues to receive interest or
dividends on the securities loaned. Security loans are secured at all times by
collateral. The collateral is equal to at least 102% of the market value of the
securities loaned plus accrued interest when the transaction is entered into.
The collateral supporting loans of domestic and foreign equity securities and
corporate bonds is remarked daily while collateral supporting loans of U.S.
government securities is remarked back to 102% only if the given collateral
falls below 100% of the market value of the securities loaned plus any accrued
interest. Cash collateral received by a Fund pursuant to these loans generally
is invested on behalf of the Fund by the securities lending agent in
high-quality short-term debt investments (including money market instruments)
according to written investment guidelines that are approved by the Fund's
adviser and designed to be consistent with the investment objective, principal
investment strategies and policies of the Fund. Gain or loss in the market price
of the securities loaned and securities in which the cash collateral is invested
by a Fund that may occur during the term of the loan are reflected in the value
of the Funds. A risk from securities lending is that the borrower may not
provide additional collateral when required or return the securities when due or
when called for by the Fund. A further risk is the potential loss in the market
price of the securities in which the cash collateral may be invested. Wells
Fargo Bank, N.A., the Funds' custodian, acts as the securities lending agent for
the Funds and receives for its services 25% of the
80 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
revenues earned on the securities lending activities (reduced from 30% effective
September 1, 2007) and incurs all expenses. For the six-month period ended April
30, 2008, Wells Fargo Bank, N.A. waived its share of revenues earned on
securities lending activities. The value of the securities on loan and the value
of the related collateral at April 30, 2008, are shown on the Statements of
Assets and Liabilities.
STRUCTURED INVESTMENT VEHICLES
The Funds may invest in structured debt securities, such as those issued by
Structured Investment Vehicles, or "SIVs". SIVs invest in a diversified pool of
underlying securities, which may include finance company debt and structured
finance assets, residential mortgage-backed securities, commercial
mortgage-backed securities, collateralized loan obligations, collateralized debt
obligations and other asset backed securities. The ability of a SIV to repay
debt depends primarily on the cash collections received from the SIV's
underlying asset portfolio, which may include certain assets such as subprime
mortgages that are subject to heightened risks of credit quality or market value
deterioration under the continuing adverse conditions in the U.S. credit
markets, and on the ability to obtain short-term funding through the issuance of
new debt. Investments in these securities present increased credit and liquidity
risks as there could be losses to a Fund in the event of credit or market value
deterioration in a SIV's underlying portfolio, mismatches in the timing of the
cash flows of the underlying asset interests and the repayment obligations of
maturing securities issued by a SIV, or a SIV's inability to issue new debt.
As of April 30, 2008, the following Funds owned certain of these types of SIVs
which are currently in default and valued at fair value in the Portfolio of
Investments or have been restructured following default, including the
percentage of each Fund's net assets invested in these securities:
Defaulted SIVs
PORTFOLIO ($Market Value) % of Net Assets
--------- --------------- ---------------
C&B MID CAP VALUE FUND 8,044,823 1.65%
COMMON STOCK FUND 8,409,355 0.81%
MID CAP GROWTH FUND 2,678,173 1.81%
SMALL CAP GROWTH FUND 10,465,377 2.59%
SMALL CAP OPPORTUNITIES FUND 14,900,622 1.95%
SWAP CONTRACTS
The Funds may enter into various hedging transactions, such as interest rate
swaps, currency swaps and other types of swap agreements, including swaps on
securities and indices, to preserve a return or spread on a particular
investment or portion of its portfolio, to create synthetic adjustable-rate
mortgage securities or for other purposes. Swaps involve the exchange of
commitments to make or receive payments, e.g., an exchange of floating-rate
payments for fixed rate payments. The Funds record as an increase or decrease to
realized gain/loss, the amount due or owed by the Funds at termination or
settlement. Swaps are valued based on prices quoted by independent brokers.
These valuations represent the net present value of all future cash settlement
amounts based on implied forward interest rates or index values.
As of April 30, 2008, the following Fund had open swap contracts:
Swap Notional Interest Rate/ Interest Rate/ Maturity Net Unrealized
FUND Counter Party Principal Index Received Index Paid Date Gain/(Loss)
---- --------------- ---------- ------------------------- -------------- ---------- --------------
Common Stock Lehman Brothers $7,465,391 Notional Amount Market Value 11-30-2008 $2,218,027
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus Market on Customized
Value Depreciation on Stock Index*
Customized Stock Index*
Common Stock Lehman Brothers 8,226,955 Notional Amount Market Value 11-07-2008 (1,028,112)
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus Market on Customized
Value Depreciation on Stock Index**
Customized Stock Index**
Wells Fargo Advantage Small and Mid Cap Stock Funds 81
Notes to Financial Statements
Swap Notional Interest Rate/ Interest Rate/ Maturity Net Unrealized
FUND Counter Party Principal Index Received Index Paid Date Gain/(Loss)
---- --------------- ---------- ------------------------- -------------- ---------- --------------
Common Stock Lehman Brothers 10,740,260 Notional Amount Market Value 07-16-2008 (219,355)
Finance x (3 Month USD Libor Appreciation
plus 30 bps) plus Market on Customized
Value Depreciation on Stock Index***
Customized Stock Index***
* Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: Rio Tinto Plc, Freeport-McMoRan Copper & Gold
Incorporated and Billiton Limited.
** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: DR Horton, Incorporated, KB Home, Toll
Brothers Incorporated, Pulte Home Incorporated and Ryan Group Incorporated.
*** Customized Stock Index consists of the following basket of common stocks
valued as of April 30, 2008: BB&T Corporation, Synovus Financial
Corporation, TCF Financial Corporation, Zions Bancorporation, Wachovia
Corporation and Bank of America Corporation.
WRITTEN OPTIONS
An option is a right to buy or sell a particular security at a specified price
within a limited period of time. The writer of the option, in return for a
premium received from the seller, has the obligation to sell (in the case of a
call option) or buy (in the case of a put option) the underlying security of the
contract. The premium received in cash from writing options is recorded as an
asset with an equal liability that is adjusted to reflect the option's value.
The premium received from writing options which expire is recorded as realized
gains. The premium received from writing options which are exercised or closed
is offset against the proceeds or amount paid on the closing transaction to
determine the realized gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased. Options are valued
based on their quoted daily settlement prices.
Risks could arise from entering into written options transactions from the
potential inability of counterparties to meet the terms of their contracts, the
potential inability to enter into a closing transaction because of an illiquid
secondary market, and from movements in interest or exchange rates or securities
values.
Written options transactions during the six-month period ended April 30, 2008,
were as follows:
COMMON STOCK FUND SMALL CAP VALUE FUND
---------------------------- ----------------------------
CALL OPTIONS WRITTEN Contracts Premiums Received Contracts Premiums Received
-------------------- --------- ----------------- --------- -----------------
Options at beginning of period (250) $ (99,249) (73,911) $(36,159,546)
Options written (250) (157,998) (143,571) (84,926,139)
Options terminated in closing transactions 0 0 169,306 92,544,414
Options expired 0 0 6,132 1,102,018
Options split 0 0 (14,215) 0
Options exercised 500 257,247 6,525 5,177,100
Options at end of period 0 $ 0 (49,734) $(22,262,153)
SMALL CAP VALUE FUND
---------------------------
PUT OPTIONS WRITTEN Contracts Premiums Received
------------------- --------- -----------------
Options at beginning of period (5,100) $(2,079,263)
Options written (9,750) (6,074,371)
Options terminated in closing transactions 14,542 8,080,343
Options expired 0 0
Options split 0 0
Options exercised 108 40,392
Options at end of period (200) $ (32,899)
82 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
3. EXPENSES
ADVISORY FEES
The Trust has entered into an advisory contract with Wells Fargo Funds
Management, LLC ("Funds Management"). Funds Management is responsible for
implementing investment policies and guidelines and for supervising the
subadviser, who is responsible for day-to-day portfolio management.
Pursuant to the contract, Funds Management is entitled to receive an advisory
fee for its services as adviser. Funds Management may retain the services of
certain investment subadvisers to provide daily portfolio management. The fees
related to subadvisory services are borne directly by the adviser and do not
increase the overall fees paid by a Fund to the adviser. Funds Management and
the investment subadvisers are entitled to be paid a monthly fee at the
following annual rates:
Advisory Subadvisory
Fees (% of Fees (% of
Average Daily Average Daily Average Daily Average Daily
FUND Net Assets Net Assets) Subadviser Net Assets Net Assets)
---- ------------------ ------------- -------------------- ------------------ -------------
C&B MID CAP VALUE FUND First $500 million 0.750 Cooke & Bieler, LP First $250 million 0.550
Next $500 million 0.700 Next $250 million 0.500
Next $2 billion 0.650 Next $250 million 0.450
Next $2 billion 0.625 Over $750 million 0.400
Over $5 billion 0.600
COMMON STOCK FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
MID CAP GROWTH FUND First $500 million 0.750 Wells Capital First $100 million 0.450
Next $500 million 0.700 Management Next $100 million 0.400
Next $2 billion 0.650 Incorporated Over $200 million 0.300
Next $2 billion 0.625
Over $5 billion 0.600
SMALL CAP GROWTH FUND* First $500 million 0.850 Wells Capital First $100 million 0.550
Next $500 million 0.825 Management Next $100 million 0.500
Next $1 billion 0.800 Incorporated Over $200 million 0.400
Next $1 billion 0.775
Over $3 billion 0.750
SMALL CAP OPPORTUNITIES FUND* First $500 million 0.850 Schroder Investment First $275 million 0.500
Next $500 million 0.825 Management North Over $275 million 0.450
Next $1 billion 0.800 America Incorporated
Next $1 billion 0.775
Over $3 billion 0.750
SMALL CAP VALUE FUND* First $500 million 0.850 Wells Capital First $100 million 0.550
Next $500 million 0.825 Management Next $100 million 0.500
Next $1 billion 0.800 Incorporated Over $200 million 0.400
Next $1 billion 0.775
Over $3 billion 0.750
* Effective March 1, 2008. Prior to March 1, 2008, Funds Management was
entitled to receive an annual fee at the following rates:
Advisory Fees
Average Daily (% of Average
FUND Net Assets Daily Net Assets)
---- ------------------ -----------------
SMALL CAP GROWTH FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
Wells Fargo Advantage Small and Mid Cap Stock Funds 83
Notes to Financial Statements
Advisory Fees
Average Daily (% of Average
FUND Net Assets Daily Net Assets)
---- ------------------ -----------------
SMALL CAP OPPORTUNITIES FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
SMALL CAP VALUE FUND First $500 million 0.900
Next $500 million 0.850
Next $2 billion 0.800
Next $2 billion 0.775
Over $5 billion 0.750
ADMINISTRATION AND TRANSFER AGENT FEES
The Trust has entered into an Administration Agreement with Funds Management.
Under this Agreement, for providing administrative services, which includes
paying fees and expenses for services provided by the transfer agent,
sub-transfer agents, omnibus account servicers and record-keepers, Funds
Management is entitled to receive the following annual fees:
Administration Fees
Average Daily (% of Average
Net Assets Daily Net Assets)
---------------- -------------------
Fund level First $5 billion 0.05
Next $5 billion 0.04
Over $10 billion 0.03
Class A, Class B, Class C, and Class D All asset levels 0.28
Class Z All asset levels 0.40
Administrator Class All asset levels 0.10
Institutional Class All asset levels 0.08
The Trust has entered into an agreement with Boston Financial Data Services
("BFDS") as the transfer agent for the Trust. BFDS is entitled to receive fees
from the administrator for its services as transfer agent.
CUSTODY FEES
The Trust has entered into a contract with Wells Fargo Bank, N.A. ("WFB"),
whereby WFB is responsible for providing custody services. Pursuant to the
contract, WFB is entitled to a monthly fee for custody services at the following
annual rates:
% of Average
Daily Net Assets
----------------
All Small and Mid Cap Stock Funds 0.02
SHAREHOLDER SERVICING FEES
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby each Fund is charged the following annual fees:
% of Average
SHARE CLASS Daily Net Assets
----------- ----------------
Class A, Class B, Class C, Class D, Class Z and Administrator Class 0.25
84 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
For the six-month period ended April 30, 2008, shareholder servicing fees paid
were as follows:
Administrator
FUND Class A Class B Class C Class D Class Z Class
---- -------- -------- -------- -------- ---------- --------------
C&B MIDCAP GROWTH FUND $ 47,276 $ 13,364 $ 13,444 $515,633 NA $ 99,057
COMMON STOCK FUND 70,182 32,964 19,204 NA $1,165,464 NA
MID CAP GROWTH FUND 135,111 6,621 3,091 NA 46,046 2
SMALL CAP GROWTH FUND 217,443 13,307 9,678 NA 40,572 109,391
SMALL CAP OPPORTUNITIES FUND NA NA NA NA 880,423 NA
SMALL CAP VALUE FUND 774,792 127,565 154,177 NA 2,995,480 NA
DISTRIBUTION FEES
The Trust has adopted a Distribution Plan (the "Plan") for Class B and Class C
shares of the applicable Funds pursuant to Rule 12b-1 under the 1940 Act.
Distribution fees are charged to the Class B and Class C shares and paid to
Wells Fargo Funds Distributor, LLC at an annual rate of 0.75% of average daily
net assets.
For the period ended April 30, 2008, distribution fees incurred are disclosed on
the Statements of Operations.
OTHER FEES
PFPC, Inc. ("PFPC") serves as fund accountant for the Trust and is entitled to
receive an annual asset based fee and an annual fixed fee from each Fund. PFPC
is also entitled to be reimbursed for all out-of-pocket expenses reasonably
incurred in providing these services.
Each Fund also bears its share of other fees and expenses incurred in the normal
course of business, including but not limited to: professional fees,
registration fees, shareholder reporting costs, and Trustees fees and expenses.
The Trust compensates its Trustees for their services, plus travel and other
expenses incurred in attending Board meetings.
WAIVED FEES AND REIMBURSED EXPENSES
Funds Management has contractually committed through February 28, 2009 to waive
fees and/or reimburse expenses to the extent necessary to maintain a certain net
operating expense ratio for the Funds. Fund level expenses, when waived, are
waived proportionately among classes based upon relative net assets. Class
specific expenses may also be waived within a specific class. The contractual
net operating expense ratios in effect for the six-month period ended April 30,
2008, were as follows:
Net Operating Expense Ratios
-------------------------------------------------------------------------
Administrator Institutional
FUND Class A Class B Class C Class D Class Z Class Class
---- ------- ------- ------- ------- ------- ------------- -------------
C&B MIDCAP GROWTH FUND 1.40% 2.15% 2.15% 1.25% NA 1.15% 0.90%
COMMON STOCK FUND 1.31% 2.06% 2.06% NA 1.29% NA NA
MID CAP GROWTH FUND 1.40% 2.15% 2.15% NA 1.49%(1) 1.15% 0.90%
SMALL CAP GROWTH FUND 1.40% 2.15% 2.15% NA 1.49%(1) 1.20% 0.90%
SMALL CAP OPPORTUNITIES FUND NA NA NA NA NA 1.20% NA
SMALL CAP VALUE FUND 1.44% 2.19% 2.19% NA 1.36% NA 0.95%
(1) Effective February 29, 2008, the net operating expense ratio fo the Mid Cap
Growth Fund Class Z and Small Cap Growth Fund Class Z decreased from 1.57%
to 1.49%. The weighted blended net operating expense ratio for the period
ended April 30, 2008, for the Mid Cap Growth Fund Class Z is 1.54% and for
the Small Cap Growth Fund Class Z is 1.55%.
4. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities
(securities with maturities of one year or less at purchase date) and U.S.
Government obligations for the six-month period ended April 30, 2008, were as
follows:
\
Wells Fargo Advantage Small and Mid Cap Stock Funds 85
Notes to Financial Statements
FUND Purchases at Cost Sales Proceeds
---------------------------- ----------------- --------------
C&B MIDCAP GROWTH FUND $ 91,830,504 $395,216,263
COMMON STOCK FUND 410,320,775 430,300,705
MID CAP GROWTH FUND 49,688,420 71,431,235
SMALL CAP GROWTH FUND 190,253,007 164,934,468
SMALL CAP OPPORTUNITIES FUND 247,926,187 290,669,367
SMALL CAP VALUE FUND 388,896,756 655,433,864
5. BANK BORROWINGS
Wells Fargo Funds Trust and Wells Fargo Variable Trust (excluding the money
market funds) share in a revolving Credit Agreement with The Bank of New York,
whereby the Funds are permitted to use bank borrowings for temporary or
emergency purposes, such as to fund shareholder redemption requests. The
agreement permits borrowings of up to $150 million, collectively. Interest is
charged to each Fund based on its borrowing at a rate equal to the Federal Funds
Rate plus 0.40%. In addition, the Funds pay a quarterly commitment fee equal to
0.1% per annum of the credit line. For the six-month period ended April 30,
2008, there were no borrowings by any of the Funds under this agreement.
6. LEGAL AND REGULATORY MATTERS
In 2004, the predecessor Strong Funds' prior investment adviser and affiliates
(collectively, "Strong") entered into agreements with certain regulators,
including the Securities and Exchange Commission and the New York Attorney
General ("NYAG"), to settle market-timing investigations. In the settlements,
Strong agreed to pay investor restoration and civil penalties. Although some
portion of these payments is likely to be distributed to predecessor Strong Fund
shareholders, no determination has yet been made as to the distribution of these
amounts, and the successor funds are not expected to receive any portion of
these payments. The NYAG settlement also imposed fee reductions across the
predecessor fund complex (excluding money market funds and very short-term
income funds) totaling $35 million by May 2009. The Funds Management has agreed
to honor these fee reductions for the benefit of shareholders across the
successor funds. Although civil litigation against Strong and certain
predecessor Strong Funds relating to these matters is continuing, neither the
current adviser nor the successor funds is a party to any such suit.
7. NEW ACCOUNTING PRONOUNCEMENTS
In September 2006, the FASB issued Statement on Financial Accounting Standards
("SFAS") No. 157, "Fair Value Measurements." This standard establishes a single
authoritative definition of fair value, sets out a framework for measuring fair
value and requires additional disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. The changes to current generally accepted accounting
principles from the application of this Statement relate to the definition of
fair value, the methods used to measure fair value, and the expanded disclosures
about fair value measurements. As of May 31, 2008, Management does not believe
the adoption of SFAS No. 157 will impact the financial statement amounts,
however, additional disclosures may be required about the inputs used to develop
the measurements and the effect of certain of the measurements on changes in net
assets for the period.
In March 2008, the FASB issued Statement of Financial Accounting Standards 161
("FAS 161"), "Disclosures about Derivative Instruments and Hedging Activities-an
amendment of FASB Statement No. 133." FAS 161 requires additional discussion
about the reporting entity's derivative instruments and hedging activities, by
providing for qualitative disclosures about the objectives and strategies for
using derivatives, quantitative data about the fair value of and gains and
losses on derivative contracts, and details of credit-risk-related contingent
features in their hedged positions. FAS 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those years. As of March 31, 2008, Management is continuing to
evaluate the impact, if any, that adoption of FAS 161 may have on the financial
statements.
86 Wells Fargo Advantage Small and Mid Cap Stock Funds
Notes to Financial Statements
8. SUBSEQUENT EVENT
At its November 7, 2007 meeting, the Board unanimously approved modifying
certain share class names and features. Class D shares and Class Z shares will
each be renamed Investor Class shares and will each be modified to assume the
features and attributes associated with Investor Class shares, including their
exchange privileges. These share class modifications are expected to take place
by the end of the third quarter of 2008. Additional information was provided to
shareholders approximately 60 days in advance of the modifications.
Wells Fargo Advantage Small and Mid Cap Stock Funds 87
Other Information
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, by calling 1-800-222-8222, visiting our Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS, or visiting the SEC Web site at WWW.SEC.GOV.
Information regarding how the Funds voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge on the Funds' Web site at WWW.WELLSFARGO.COM/ADVANTAGEFUNDS or by
visiting the SEC Web site at WWW.SEC.GOV.
PORTFOLIO HOLDINGS INFORMATION
The complete portfolio holdings for each Portfolio, except money market funds,
are publicly available on the Funds' Web site
(WWW.WELLSFARGO.COM/ADVANTAGEFUNDS) on a monthly, 30-day or more delayed basis
and for money market funds, on a monthly, seven-day delayed basis. In addition,
top ten holdings information for each Portfolio is publicly available on the
Funds'Web site on a monthly, seven-day or more delayed basis. Each Portfolio
files its complete schedule of portfolio holdings with the SEC for the first and
third quarters of each fiscal year on Form N-Q, which is available without
charge by visiting the SEC Web site at www.sec.gov. In addition, each Fund's
Form N-Q may be reviewed and copied at the SEC's Public Reference Room in
Washington, DC, and at regional offices in New York City, at 233 Broadway, and
in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the
Public Reference Room may be obtained by calling 1-800-SEC-0330.
BOARD OF TRUSTEES
The following table provides basic information about the Board of Trustees (the
"Trustees") of the Wells Fargo Funds Trust (the "Trust"). This table
supplements, and should be read in conjunction with, the Prospectus and the
Statement of Additional Information(1) of each Portfolio. Each of the Trustees
listed below acts in identical capacities for each of the 146 funds comprising
the Trust, Wells Fargo Variable Trust and Wells Fargo Master Trust (collectively
the "Fund Complex"). All of the non-interested Trustees are also members of the
Audit and Governance Committees of each Trust in the Fund Complex. The 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.
NON-INTERESTED TRUSTEES
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
-------------------- -------------------------- -------------------------------------------------------- -------------------
Thomas S. Goho Trustee, since 1987 Co-Director for the Calloway School of Stephens None
65 University of Wake Forest University. Prior thereto, the
Thomas Goho Chair of Finance of Wake Forest University,
Calloway School of Business and Accountancy, from
2006-2007 and Associate Professor of Finance from
1999-2005.
Peter G. Gordon Trustee, since 1998; Chairman, CEO and Co-Founder of Crystal Geyser Water None
65 Chairman, since 2005 (Lead Company and President of Crystal Geyser Roxane Water
Trustee since 2001) Company.
Olivia S. Mitchell Trustee, since 2006 Professor of Insurance and Risk Management, Wharton None
55 School, University of Pennsylvania. Director of the
Boettner Center on Pensions and Retirement Research.
Research associate and board member, Penn Aging Research
Center. Research associate, National Bureau of Economic
Research.
Timothy J. Penny Trustee, since 1996 President and CEO of Southern Minnesota Initiative None
56 Foundation, a non-profit organization since 2007 and
Senior Fellow at the Humphrey Institute Policy Forum at
the University of Minnesota since 1995.
Donald C. Willeke Trustee, since 1996 Principal of the law firm of Willeke & Daniels. None
67
88 Wells Fargo Advantage Small and Mid Cap Stock Funds
Other Information
INTERESTED TRUSTEE(3)
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
-------------------- -------------------------- -------------------------------------------------------- -------------------
J. Tucker Morse Trustee, since 1987 Private Investor/Real Estate Developer. Prior thereto, None
63 Chairman of Whitepoint Capital, LLC until 2004.
OFFICERS
Position Held and
Name and Age Length of Service(2) Principal Occupations During Past Five Years Other Directorships
-------------------- -------------------------- -------------------------------------------------------- -------------------
Karla M. Rabusch President, since 2003 Executive Vice President of Wells Fargo Bank, N.A. and None
President of Wells Fargo Funds Management, LLC since
2003. Senior Vice President and Chief Administrative
Officer of Wells Fargo Funds Management, LLC from 2001
to 2003.
C. David Messman Secretary, since 2000; Senior Vice President and Secretary of Wells Fargo Funds None
47 Chief Legal Counsel, Management, LLC since 2001. Vice President and Managing
since 2003 Senior Counsel of Wells Fargo Bank, N.A. since 1996.
Stephen W. Leonhardt Treasurer, since 2007 Vice President and Manager of Fund Accounting, Reporting None
48 and Tax for Wells Fargo Funds Management, LLC since
2007. Director of Fund Administration and SEC Reporting
for TIAA-CREF from 2005 to 2007. Chief Operating Officer
for UMB Fund Services, Inc. from 2004 to 2005.
Controller for Sungard Transaction Networks from 2002 to
2004.
Debra Ann Early Chief Compliance Chief Compliance Officer of Wells Fargo Funds None
43 Officer, since 2007 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 Funds'Trustees and is available, without charge, upon request, by
calling 1-800-222-8222 or by visiting the Funds'Web site at
WWW.WELLSFARGO.COM/ADVANTAGEFUNDS.
(2) Length of service dates reflects a Trustee's commencement of service with
the Trust's predecessor entities.
(3) As of April 30, 2008, one of the six Trustees is considered an "interested
person" of the Trusts as defined in the Investment Company Act of 1940. The
interested Trustee, J. Tucker Morse, is affiliated with a government
securities dealer that is registered under the Securities Exchange Act of
1934, which is not itself affiliated with Wells Fargo Funds Management,
LLC.
Wells Fargo Advantage Small and Mid Cap Stock Funds 89
Other Information
BOARD CONSIDERATION OF AND CONTINUATION OF
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:
C&B MID CAP VALUE FUND, COMMON STOCK FUND, MID CAP GROWTH FUND,
SMALL CAP GROWTH FUND, SMALL CAP OPPORTUNITIES FUND AND SMALL CAP VALUE FUND
Section 15(c) of the Investment Company Act of 1940 (the "1940 Act")
contemplates that the Board of Trustees (the "Board") of Wells Fargo Funds Trust
(the "Trust"), including a majority of the Trustees who have no direct or
indirect interest in the investment advisory and sub-advisory agreements and are
not "interested persons" of the Trust, as defined in the 1940 Act (the
"Independent Trustees"), will annually review and consider the continuation of
the investment advisory and sub-advisory agreements. In this regard, the Board
reviewed and re-approved, during the six months covered by this report: (i) an
investment advisory agreement with Wells Fargo Funds Management, LLC ("Funds
Management") for the C&B Mid Cap Value Fund, Common Stock Fund, Mid Cap Growth
Fund, Small Cap Growth Fund, Small Cap Opportunities Fund and Small Cap Value
Fund (the "Funds"); (ii) an investment sub-advisory agreement with Wells Capital
Management Incorporated ("Wells Capital Management") for the Common Stock Fund,
Mid Cap Growth Fund, Small Cap Growth Fund, and Small Cap Value Fund; (iii) an
investment sub-advisory agreement with Schroder Investment Management North
America Inc. ("Schroder") for the Small Cap Opportunities Fund; and (iv) an
investment sub-advisory agreement with Cooke & Bieler, L.P. ("Cooke & Bieler")
for the C&B Mid Cap Value Fund. The investment advisory agreement with Funds
Management and the investment sub-advisory agreements with Wells Capital
Management, Schroder and Cooke & Bieler (the "Sub-Advisers") are collectively
referred to as the "Advisory Agreements."
More specifically, at a meeting held on March 28, 2008, the Board, including the
Independent Trustees advised by their independent legal counsel, considered the
factors and reached the conclusions described below relating to the selection of
Funds Management and the Sub-Advisers and the continuation of the Advisory
Agreements. Prior to the March 28, 2008, meeting, the Trustees conferred
extensively among themselves and with representatives of Funds Management about
these matters. The Board also met regularly throughout the year and received
information that was useful to them in considering the continuation of the
Advisory Agreements. The Independent Trustees were assisted in their evaluation
of the Advisory Agreements by independent legal counsel, from whom they received
separate legal advice and with whom they met separately from Funds Management.
NATURE, EXTENT AND QUALITY OF SERVICES
The Board received and considered various data and information regarding the
nature, extent and quality of services provided to the Funds by Funds Management
and the Sub-Advisers under the Advisory Agreements. The Board also received and
considered information provided in response to a detailed set of requests
submitted by the Independent Trustees' independent legal counsel. The Board
received and considered, among other things, information about the background
and experience of senior management of Funds Management and the qualifications,
backgrounds, tenures and responsibilities of the portfolio managers primarily
responsible for day-to-day portfolio management services for the Funds.
The Board evaluated the ability of Funds Management and the Sub-Advisers, 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 the
Sub-Advisers, and the appointment of a new Chief Compliance Officer for the
Funds. In addition, the Board took into account the administrative services
provided to the Funds by Funds Management and its affiliates.
In considering these matters, the Board considered not only the specific
information presented in connection with the meeting, but also the knowledge
gained over the course of interacting with Funds Management and the Sub-Advisers
about various topics, including Funds Management's oversight of service
providers. Based on the above factors, together with those referenced below, the
Board concluded that it was generally satisfied with the nature, extent and
quality of the investment advisory services provided to the Funds by Funds
Management and the Sub-Advisers.
FUND PERFORMANCE AND EXPENSES
The Board considered the performance results for each of the Funds over various
time periods ended December 31, 2007. The Board also considered these results in
comparison to the median performance of a universe of relevant fund that was
determined by Lipper Inc. ("Lipper") to be similar to the Funds (the
"Universe"), as well as to each Fund's
90 Wells Fargo Advantage Small and Mid Cap Stock Funds
Other Information
benchmark index and to other comparative data. Lipper is an independent provider
of investment company data. The Board was provided with a description of the
methodology used by Lipper to select the mutual funds in the Universe.
The Board noted that the performance of each Fund, except for the C&B Mid Cap
Value Fund, was better than, or not appreciably below, the median performance of
its Peer Group for all time periods. The Board noted that performance of the C&B
Mid Cap Value Fund was lower than the median performance of its Universe for all
time periods and required further review. As part of its further review, the
Board received an analysis of, and discussed factors contributing to, the
underperformance of the C&B Mid Cap Value Fund. The Board requested continued
reports on the performance of the C&B Mid Cap Value Fund.
The Board received and considered information regarding each Fund's contractual
advisory fees, and net operating expense ratio and their various components,
including actual management fees, transfer agent, custodian and other
non-management fees, Rule 12b-1 and non-Rule 12b-1 service fees, fee
waivers/caps and/or expense reimbursements. The Board also considered
comparisons of these fees to the respective median fees of narrower groups of
funds that were determined by Lipper to be the most similar to the Funds (the
"Peer Group") and to other comparative data. The Board was provided with a
description of the methodology used by Lipper to select the mutual funds in the
Peer Group. The Board noted that each Fund's net operating expense ratios were
lower than, equal to, or not appreciably higher than, each Fund's Peer Group's
median net operating expense ratios. The Board also noted Funds Management's
recommendation to reduce the net operating expense ratios for certain share
classes of the Mid Cap Growth Fund in coming to its conclusion.
Based on the above-referenced considerations and other factors, the Board
concluded that the overall performance and expense results supported the
re-approval of the Advisory Agreements for the Funds.
INVESTMENT ADVISORY AND SUB-ADVISORY FEE RATES
The Board reviewed and considered the contractual investment advisory fee rates
payable by the Funds to Funds Management for investment advisory services (the
"Advisory Agreement Rates"), both on a stand-alone basis and on a combined basis
with the Funds' administration fee rates. The Board took into account the
separate administrative and other services covered by the administration fee
rates. The Board also reviewed and considered the contractual investment
sub-advisory fee rates payable by Funds Management to the Sub-Advisers for
investment sub-advisory services (the "Sub-Advisory Agreement Rates"). In
addition, the Board reviewed and considered the existing fee waiver/cap
arrangements applicable to the Advisory Agreement Rates and considered the
Advisory Agreement Rates after taking the waivers/caps into account (the "Net
Advisory Rates").
The Board received and considered information comparing the Advisory Agreement
Rates and Net Advisory Rates with those of the other funds in each Fund's Peer
Group. The Board noted that the Advisory Agreement Rates and the Net Advisory
Rates for each Fund were lower than, equal to, or not appreciably higher than,
the median rates of each Fund's respective Peer Group. In addition, the Board
concluded that the combined investment advisory/administration fee rates for the
Funds (before and after waivers/caps and/or expense reimbursements) were
reasonable in relation to each Fund's respective Peer Group, and reasonable in
relation to the services provided. The Board also considered and approved Funds
Management's recommendation to reduce administration fees for a share class of
certain Funds in coming to its conclusion.
The Board also reviewed and considered the Sub-Advisory Agreement Rates and
concluded that the Sub-Advisory Agreement Rates were fair and equitable, based
on its consideration of the factors described above.
PROFITABILITY
The Board received and considered a detailed profitability analysis of Funds
Management based on the Advisory Agreement Rates and Net Advisory Rates, as well
as an analysis of the profitability to other Wells Fargo businesses of providing
services to the Funds. The Board also considered related information provided by
Funds Management in a separate presentation on financial matters made at the
February 2008 board meeting. The Board concluded that, in light of the costs of
providing investment management and other services to the Funds, the profits and
other ancillary benefits that Funds Management and its affiliates received with
regard to providing these services to the Funds were not unreasonable.
The Board did not consider separate profitability information with respect to
Wells Capital Management, as its profitability from its relationship with the
Common Stock Fund, Mid Cap Growth Fund, Small Cap Growth Fund and
Wells Fargo Advantage Small and Mid Cap Stock Funds 91
Other Information
Small Cap Value Fund was not a material factor in determining whether to renew
the agreement. The Board did not consider separate profitability information
with respect to Cooke & Bieler or Schroder, which are not affiliated with Funds
Management. The Board considered that the sub-advisory fees paid to Cooke &
Bieler and Schroder had been negotiated by Funds Management on an arm's length
basis and that Cooke & Bieler's and Schroder's profitability from their
relationships with the C&B Mid Cap Value Fund and Small Cap Opportunities Fund
was not a material factor in determining whether to renew the agreements.
ECONOMIES OF SCALE
The Board received and considered general information regarding whether there
have been economies of scale with respect to the management of the Funds,
whether the Funds have appropriately benefited from any economies of scale, and
whether there is potential for realization of any further economies of scale for
the Funds. The Board also considered information provided by Funds Management in
separate presentations on advisory fee breakpoints and economies of scale made
at the February 2008 board meeting. The Board acknowledged the inherent
limitations of any analysis of an investment adviser's economies of scale and of
any attempt to correlate breakpoints with such economies, stemming largely from
the Board's understanding that economies of scale are realized, if at all, by an
investment adviser across a variety of products and services, not just with
respect to a single fund. The Board concluded that any actual or potential
economies of scale are, or will be, shared reasonably with Fund shareholders,
most particularly through Advisory Agreement Rate breakpoints and waivers/caps
and/or expense reimbursements applicable to the Funds.
INFORMATION ABOUT SERVICES TO OTHER CLIENTS
The Board also received and considered information about the nature and extent
of services and fee rates offered by Funds Management to other similarly
situated series of the Trust, and those offered by the Sub-Advisers to other
clients. The Board concluded that the Advisory Agreement Rates, the Sub-Advisory
Agreement Rates and the Net Advisory Rates were within a reasonable range of the
fee rates offered to others by Funds Management and the Sub-Advisers, giving
effect to differences in services covered by such fee rates.
OTHER BENEFITS TO FUNDS MANAGEMENT AND THE SUB-ADVISERS
The Board received and considered information regarding potential "fall-out" or
ancillary benefits received by Funds Management and its affiliates and the
Sub-Advisers as a result of their relationship with the Funds. Such benefits
could include, among others, benefits directly attributable to the relationship
of Funds Management and the Sub-Advisers with the Funds and benefits potentially
derived from an increase in Funds Management's and the Sub-Advisers' business as
a result of their relationship with the Funds (such as the ability to market to
shareholders other financial products offered by Funds Management and its
affiliates, or the Sub-Advisers and their affiliates).
The Board also considered the effectiveness of the policies of the Funds in
achieving the best execution of portfolio transactions, whether and to what
extent soft dollar credits are sought and how any such credits are utilized, any
benefits that may be realized by using an affiliated broker and the controls
applicable to brokerage allocation procedures. The Board also reviewed Funds
Management's and the Sub-Advisers' methods for allocating portfolio investment
opportunities among the Funds and other clients.
OTHER FACTORS AND BROADER REVIEW
The Board also considered the markets for distribution of the Funds, including
the principal channels through which the Funds' shares are offered and sold. The
Board noted that the Funds are part of one of the few fund families that have
both direct-to-fund and intermediary distribution channels.
As discussed above, the Board reviews detailed materials received from Funds
Management and the Sub-Advisers annually as part of the re-approval process
under Section 15(c) of the 1940 Act. The Board also reviews and assesses the
quality of the services that the Funds receive 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, a us times throughout the
year.
After considering the above-described factors and based on its deliberations and
its evaluation of the information described above, the Board concluded that
approval of the continuation of the Advisory Agreements for the Funds was in the
best interest of the Funds and their shareholders. Accordingly, the Board
unanimously approved the continuation of the Advisory Agreements for an
additional one-year period.
92 Wells Fargo Advantage Small and Mid Cap Stock Funds
List of Abbreviations
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- Association of Bay Area Governments
ADR -- American Depositary Receipt
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Alternative Minimum Tax
ARM -- Adjustable Rate Mortgages
BART -- Bay Area Rapid Transit
CDA -- Community Development Authority
CDO -- Collateralized Debt Obligation
CDSC -- Contingent Deferred Sales Charge
CGIC -- Capital Guaranty Insurance Company
CGY -- Capital Guaranty Corporation
COP -- Certificate of Participation
CP -- Commercial Paper
CTF -- Common Trust Fund
DW&P -- Department of Water & Power
DWR -- Department of Water Resources
ECFA -- Educational & Cultural Facilities Authority
EDFA -- Economic Development Finance Authority
ETET -- Eagle Tax-Exempt Trust
FFCB -- Federal Farm Credit Bank
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Authority
FHAG -- Federal Housing Agency
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GDR -- Global Depositary Receipt
GNMA -- Government National Mortgage Association
GO -- General Obligation
HCFR -- Healthcare Facilities Revenue
HEFA -- Health & Educational Facilities Authority
HEFAR -- Higher Education Facilities Authority Revenue
HFA -- Housing Finance Authority
HFFA -- Health Facilities Financing Authority
IDA -- Industrial Development Authority
IDAG -- Industrial Development Agency
IDR -- Industrial Development Revenue
LIBOR -- London Interbank Offered Rate
LLC -- Limited Liability Corporation
LOC -- Letter of Credit
LP -- Limited Partnership
MBIA -- Municipal Bond Insurance Association
MFHR -- Multi-Family Housing Revenue
MTN -- Medium Term Note
MUD -- Municipal Utility District
PCFA -- Pollution Control Finance Authority
PCR -- Pollution Control Revenue
PFA -- Public Finance Authority
PFFA -- Public Facilities Financing Authority
plc -- Public Limited Company
PSFG -- Public School Fund Guaranty
R&D -- Research & Development
RDA -- Redevelopment Authority
RDFA -- Redevelopment Finance Authority
REITS -- Real Estate Investment Trusts
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
SLMA -- Student Loan Marketing Association
TBA -- To Be Announced
TRAN -- Tax Revenue Anticipation Notes
USD -- Unified School District
XLCA -- XL Capital Assurance
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(WELLS FARGO LOGO)
ADVANTAGE FUNDS
MORE INFORMATION ABOUT WELLS FARGO ADVANTAGE FUNDS AVAILABLE FREE UPON REQUEST.
TO OBTAIN LITERATURE, PLEASE WRITE, E-MAIL, VISIT THE FUNDS' WEB SITE, OR CALL:
WELLS FARGO ADVANTAGE FUNDS
P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com
Web site: www.wellsfargo.com/advantagefunds
Individua Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF WELLS FARGO ADVANTAGE FUNDS. IF THIS
REPORT IS USED FOR PROMOTIONAL PURPOSES, DISTRIBUTION OF THE REPORT MUST BE
ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR A PROSPECTUS CONTAINING
MORE COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-222-8222
OR VISIT THE FUNDS' WEB SITE AT WWW.WELLSFARGO.COM/ADVANTAGEFUNDS. PLEASE
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
INVESTMENT CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION ABOUT WELLS
FARGO ADVANTAGE FUNDS CAN BE FOUND IN THE CURRENT PROSPECTUS. READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory and administrative services for WELLS
FARGO ADVANTAGE FUNDS. Other affiliates of Wells Fargo & Company provide
subadvisory and other services for the Funds. The Funds are distributed by WELLS
FARGO FUNDS DISTRIBUTOR, LLC, Member FINRAI/SIPC, an affiliate of Wells Fargo &
Company.
NOT FDIC INSURED - NO BANK GURANTEE - MAY LOSE VALUE
(C) 2008 Wells Fargo Funds Management, LLC. All rights reserved.
www.wellsfargo.com/advantagefunds
110491 06-07
SMCFLD/SAR122 04-08