Wells Fargo Funds. Statement of Additional Information. September 1, 2017 ALLOCATION FUNDS

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1 Statement of Additional Information September 1, 2017 Wells Fargo Funds ALLOCATION FUNDS Wells Fargo Asset Allocation Fund Class A - EAAFX; Class C - EACFX; Class R - EAXFX; Administrator Class - EAIFX; Institutional Class - EAAIX Wells Fargo Funds Trust (the Trust ) is an open-end, management investment company. This Statement of Additional Information ( SAI ) contains additional information about a series of the Trust in the Wells Fargo family of funds - the above referenced Fund (the Fund ). The Fund is considered diversified under the Investment Company Act of 1940, as amended (the 1940 Act ). The Fund offers certain classes of shares as indicated above. This SAI relates to all such classes of shares. This SAI is not a prospectus and should be read in conjunction with the Fund s Prospectuses (the Prospectuses ) dated September 1, The audited financial statements for the Fund, which include the portfolios of investments and report of the independent registered public accounting firm for the fiscal period ended April 30, 2017, are hereby incorporated by reference to the Fund s Annual Report dated as of April 30, The Prospectuses, Annual Report and Semi-Annual Reports may be obtained free of charge by visiting our Web site at wellsfargofunds.com, calling or writing to Wells Fargo Funds, P.O. Box 8266, Boston, MA ALOS3/FASAI

2 SUPPLEMENT TO THE STATEMENTS OF ADDITIONAL INFORMATION OF WELLS FARGO ALTERNATIVE FUNDS WELLS FARGO COREBUILDER SHARES WELLS FARGO FIXED INCOME FUNDS WELLS FARGO INTERNATIONAL AND GLOBAL EQUITY FUNDS WELLS FARGO MONEY MARKET FUNDS WELLS FARGO MULTI-ASSET FUNDS WELLS FARGO MUNICIPAL FIXED INCOME FUNDS WELLS FARGO SPECIALTY FUNDS WELLS FARGO TARGET DATE RETIREMENT FUNDS WELLS FARGO U.S. EQUITY FUNDS WELLS FARGO VARIABLE TRUST FUNDS (Each, a Fund and together, the Funds ) At a meeting held on April 17-18, 2018, the Boards of Trustees of Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and Asset Allocation Trust (the Trusts ) appointed Alexander Kymn as Secretary and Chief Legal Officer of the Trusts, effective April 17, As a result, the information regarding C. David Messman under the TRUSTEES AND OFFICERS section for each Fund is deleted and replaced with the following: Name and Year of Birth Alexander Kymn (Born 1973) Position Held With Registrant/Length of Service Secretary, since 2018; Chief Legal Officer, since 2018 Principal Occupation(s) During Past 5 Years or Longer Senior Company Counsel of Wells Fargo Bank, N.A since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to April 18, 2018

3 SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION OF WELLS FARGO ASSET ALLOCATION FUNDS For Wells Fargo Asset Allocation Fund (the Fund ) At a meeting held February 27-28, 2018, the Board of Trustees of Wells Fargo Funds Trust approved the addition of Wells Capital Management Incorporated ("Wells Capital Management") as the new sub-adviser for the Fund, effective on or about June 15, In connection with this change, the Statement of Additional is amended as follows, effective on or about June 15, 2018: I. Sub-Adviser and Portfolio Manager Changes Wells Capital Management Incorporated ( Wells Capital Managment ) will become the sub-adviser for the Fund. Accordingly, all references to Grantham, May, Van Otterloo & Co. LLC ( GMO ) in the SAI are deleted. In addition, Kandarp R. Acharya, CFA, FRM, Petros N. Bocray, CFA, FRM, and Christian L. Chan, CFA, of Wells Capital Management will be listed as the Portfolio Managers for the Fund. Accordingly, disclosure concerning the portfolio managers for the Fund in the table in the section entitled Management Portfolio Managers is deleted and replaced with the following: Fund Sub-Adviser Portfolio Managers Asset Allocation Fund Wells Capital Managment Kandarp R. Acharya, CFA, FRM Petros N. Bocray, CFA, FRM Christian L. Chan, CFA II. Management Fee Disclosure concerning the management fees for the Fund in the table in the section entitled Management Manager and Class-Level Administrator is deleted and replaced with the following: Fund Assets Fee Asset Allocation Fund First $500M 0.30% Next $500M 0.28% Next $2B 0.26% Next $2B 0.24% Next $5B 0.23% Over $10B 0.22% III. Sub-Adviser Fees The following disclosure concerning the sub-advisor is added to create the new section entitled Management Sub- Advisers Funds Management has engaged Wells Capital Management Incorporated ("Wells Capital Management"), an affiliate of Funds Management, to serve as sub-adviser to the Funds (the "Sub-Adviser"). Subject to the direction of the Trust's Board and the overall supervision and control of Funds Management and the Trust, the Sub-Adviser provides day-to-day portfolio management services to the Funds. Funds Management may, from time to time and in its sole discretion, allocate and reallocate services provided by and fees paid to the Sub-Adviser. For providing investment sub-advisory services, including asset allocation services, to the Fund, Wells Capital Management is entitled to receive an annual fee as a percentage of the Fund's daily net assets as follows:

4 Fund Sub-Adviser Assets Fee Asset Allocaiton Fund Wells Capital Management First $250 million 0.10% Over $250 million 0.05% IV. Management of Other Accounts Disclosure concerning the other accounts managed by the portfolio managers for the Fund in the table in the section entitled Management Portfolio Managers Management of Other Accounts is deleted and replaced with the following: Analytic Kandarp R. Acharya, CFA, FRM 1 Petros N. Bocray, CFA, FRM 1 Christian L. Chan, CFA 1 Registered Investment Companies Number of Accounts 40 Total Assets Managed $8.73B Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Other Pooled Investment Vehicles Number of Accounts 17 Total Assets Managed $70M Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Other Accounts Number of Accounts 32 Total Assets Managed $1.15B Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Registered Investment Companies Number of Accounts 33 Total Assets Managed $9.55B Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Other Pooled Investment Vehicles Number of Accounts 2 Total Assets Managed $91.14M Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Other Accounts Number of Accounts 0 Total Assets Managed $0 Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Registered Investment Companies Number of Accounts 34 Total Assets Managed $9.47B Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Other Pooled Investment Vehicles Number of Accounts 14 Total Assets Managed $5.12B Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 Other Accounts

5 Number of Accounts 33 Total Assets Managed $1.08B Number of Accounts Subject to Performance Fee 0 Assets of Accounts Subject to Performance Fee $0 1 The portfolio manager started managing the Asset Allocation Fund on June 15, The information presented in this table is as of January 31, 2018, at which time they were not a manager of the Fund. V. Beneficial Ownership in the Fund Effective June 15, 2018, disclosure concerning the dollar value of Fund equity securities beneficially owned by the portfolio managers for the Fund in the section entitled Management Portfolio Managers Beneficial Ownership in the Funds is deleted and replaced with the table following: Sub-Adviser / Portfolio Manager Fund Dollar Range of Holdings in Fund Wells Capital Management Kandarp R. Acharya, CFA, Asset Allocation Fund $0 FRM Petros N. Bocray, CFA, FRM Asset Allocation Fund $0 Christian L. Chan, CFA Asset Allocation Fund $0 VI. Material Conflicts of Interest Effective June 15, 2018, disclosure concerning the material conflicts of interest relating to the portfolio managers for the Fund in the section entitled Management Portfolio Managers Material Conflicts of Interest is deleted and replaced with the following: Wells Capital Management. Wells Capital Management's Portfolio Managers often provide investment management for separate accounts advised in the same or similar investment style as that provided to mutual funds. While management of multiple accounts could potentially lead to conflicts of interest over various issues such as trade allocation, fee disparities and research acquisition, Wells Capital Management has implemented policies and procedures for the express purpose of ensuring that clients are treated fairly and that potential conflicts of interest are minimized. VII. Compensation Effective June 15, 2018, disclosure concerning the compensation of the portfolio managers for the Fund in the section entitled Management Portfolio Managers Compensation is deleted and replaced with the following: Wells Capital Management. The compensation structure for Wells Capital Management's Portfolio Managers includes a competitive fixed base salary plus variable incentives, payable annually and over a longer term period. Wells Capital Management participates in third party investment management compensation surveys in order to provide Wells Capital Management with market-based compensation information to help support individual pay decisions. In addition to investment management compensations surveys, Wells Capital Management also considers prior professional experience, tenure, seniority and a Portfolio Manager's team size, scope and assets under management when determining their fixed base salary. Incentive bonuses are typically tied to relative, pre-tax investment performance of the Funds or other accounts under his or her management within acceptable risk parameters. Relative investment performance is generally evaluated for 1, 3, and 5 year performance results, with a predominant weighting on the 3- and 5- year time periods, versus the relevant benchmarks and/or peer groups consistent with the investment style. In the case of each Fund, the benchmark(s) against which the performance of the Fund's portfolio may be compared for these purposes generally are indicated in the "Performance" sections of the Prospectuses. In addition, Portfolio Managers, who meet the eligibility requirements, may participate in Wells Fargo's 401(k) plan that features a limited matching contribution. Eligibility for and participation in this plan is on the same basis for all employees. March 6, 2018

6 SUPPLEMENT TO THE STATEMENTS OF ADDITIONAL INFORMATION ( SAI ) OF WELLS FARGO ALLOCATION FUNDS WELLS FARGO ALTERNATIVE FUNDS WELLS FARGO CORE BUILDER SHARES WELLS FARGO DYNAMIC TARGET DATE FUNDS WELLS FARGO EMERGING MARKETS BOND FUND WELLS FARGO EQUITY GATEWAY FUNDS WELLS FARGO FACTOR ENHANCED EMERGING MARKETS FUND WELLS FARGO FACTOR ENHANCED INTERNATIONAL FUND WELLS FARGO FACTOR ENHANCED LARGE CAP FUND WELLS FARGO FACTOR ENHANCED SMALL CAP FUND WELLS FARGO HIGH YIELD CORPORATE BOND FUND WELLS FARGO INCOME FUNDS WELLS FARGO INTERNATIONAL EQUITY FUNDS WELLS FARGO INTERNATIONAL GOVERNMENT BOND FUND WELLS FARGO LARGE CAP STOCK FUNDS WELLS FARGO MUNICIPAL INCOME FUNDS WELLS FARGO SMALL, MID, ALL CAP STOCK FUNDS WELLS FARGO SMALL TO MID CAP STOCK FUNDS WELLS FARGO SPECIALTY FUNDS WELLS FARGO TARGET DATE FUNDS WELLS FARGO U.S. CORE BOND FUND WELLS FARGO VARIABLE TRUST FUNDS WELLS FARGO WEALTHBUILDER FUNDS (Each a Fund, together the Funds ) At special meetings of shareholders of the Funds, which are series of Wells Fargo Variable Trust and Wells Fargo Funds Trust (each a Trust ), held on September 26, 2017 and October 24, 2017, respectively, shareholders of the Funds elected or re-elected to the Boards of Trustees of the Trusts, effective January 1, 2018: William R. Ebsworth, Jane A. Freeman, Isaiah Harris, Jr., Judith M. Johnson, David F. Larcker, Olivia S. Mitchell, Timothy J. Penny, James G. Polisson, Michael S. Scofield and Pamela Wheelock. As a result, effective January 1, 2018, each Board consists of ten members, each of whom is not an interested person of the Trusts as that term is defined by the Investment Company Act of 1940, as amended. As Mr. Polisson and Ms. Wheelock were elected as new Trustees, they no longer serve as members of the Advisory Board. In addition, Peter Gordon retired from the Boards on December 31, 2017, and effective January 1, 2018, Mr. Penny serves as the Chairman of the Boards. In consideration of the foregoing, each Fund s SAI is hereby amended as follows, effective immediately: I. The following information is hereby added to the table in the section entitled TRUSTEES AND OFFICERS General, and the previous disclosures in the table regarding Mr. Polisson and Ms. Wheelock serving as members of the Advisory Board are hereby deleted:

7 Name and Year of Birth Position Held with Registrant / Length of Service INDEPENDENT TRUSTEES James G. Polisson (Born 1959) Pamela Wheelock (Born 1959) Trustee, since 2018; Advisory Board Member, from 2017 to 2018 Trustee, since 2018; Advisory Board Member, from 2017 to 2018 Principal Occupation(s) During Past 5 Years or Longer Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for ishares and Barclays Global Investors from 2000 to Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to Board member of the Russell Exchange Traded Fund Trust from 2011 to Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. Chief Operating Officer, Twin Cities Habitat for Humanity, since January, Vice President of University Services, University of Minnesota from 2012 to Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to Commissioner of Finance, State of Minnesota, from 1999 to Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since Current Other Public Company or Investment Company Directorships Asset Allocation Trust Asset Allocation Trust II. The following biographical information regarding Mr. Polisson and Ms. Wheelock hereby replaces the existing biographical information in the section entitled TRUSTEES AND OFFICERS General : James G. Polisson. Mr. Polisson has served as a Trustee of the Trusts in the Fund Complex since 2018 and was an Advisory Board Member in Mr. Polisson has extensive experience in the financial services industry, including over 15 years in the ETF industry. From 2015 to July 31, 2017, Mr. Polisson was the Chief Marketing Officer of Source (ETF) UK Services, Ltd., one of the largest providers of exchange-traded products in Europe. From 2012 to 2015, Mr. Polisson was Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing firm. Prior to 2012, Mr. Polisson was

8 Chief Executive Officer and Managing Director of Russell Investments' global ETF business from He was also a member of the Board of Trustees of Russell Exchange Traded Funds Trust, where he served as Chairman, President and Chief Executive Officer from 2011 to Mr. Polisson also served as Chief Marketing Officer for Barclays Global Investors from 2000 to 2010, where he led global marketing for the ishares ETF business. Pamela Wheelock. Ms. Wheelock has served as a Trustee of the Trusts in the Fund Complex since 2018 and was an Advisory Board Member in Ms. Wheelock is the Chief Operating Officer of Twin Cities Habitat for Humanity. Ms. Wheelock has more than 25 years of leadership experience in the private, public and nonprofit sectors. Prior to joining Habitat for Humanity in 2017, Ms. Wheelock was the Vice President of University Services at the University of Minnesota from 2012, where she served as chief operations officer of the University. She also served as Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Vice President of the Bush Foundation from 2009 to 2011, and Executive Vice President and Chief Financial Officer of Minnesota Sports and Entertainment from 2004 to Ms. Wheelock served as the Executive Budget Officer and Finance Commissioner for the State of Minnesota from 1999 to III. The following is hereby added as a footnote to the table in the section entitled TRUSTEES AND OFFICERS Compensation Trustee Compensation : Mr. Polisson and Ms. Wheelock served as Advisory Board members during 2017, and neither Mr. Polisson nor Ms. Wheelock received more than $60,000 in compensation from the Fund Complex for service as Advisory Board members during that time period. IV. The following paragraph hereby replaces the second paragraph in the section entitled TRUSTEES AND OFFICERS Board of Trustees Leadership Structure and Oversight Responsibilities Committees with the following: (1) Governance Committee. Except with respect to any trustee nomination made by an eligible shareholder or shareholder group as permitted by applicable law and applicable provisions of the Declaration of Trust and any By-Laws of a Trust, the Committee shall make all nominations for membership on the Board of Trustees of each Trust. The Committee shall evaluate each candidate s qualifications for Board membership and his or her independence from the Funds manager, sub-adviser(s) and principal underwriter(s) and, as it deems appropriate, other principal service providers. Olivia Mitchell serves as the chairman of the Governance Committee. V. All references to Peter Gordon are hereby removed and deleted from the SAI. VI. All references to Mr. Penny as Vice Chair of the Board are replaced in the SAI with references to Mr. Penny as Chairman of the Board. January 2, 2018

9 SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION ( SAI ) OF WELLS FARGO ALLOCATION FUNDS WELLS FARGO ALTERNATIVE FUNDS WELLS FARGO CORE BUILDER SHARES WELLS FARGO DYNAMIC TARGET DATE FUNDS WELLS FARGO EMERGING MARKETS BOND FUND WELLS FARGO EQUITY GATEWAY FUNDS WELLS FARGO FACTOR ENHANCED EMERGING MARKETS FUND WELLS FARGO FACTOR ENHANCED INTERNATIONAL FUND WELLS FARGO FACTOR ENHANCED LARGE CAP FUND WELLS FARGO FACTOR ENHANCED SMALL CAP FUND WELLS FARGO HIGH YIELD CORPORATE BOND FUND WELLS FARGO INCOME FUNDS WELLS FARGO INTERNATIONAL EQUITY FUNDS WELLS FARGO INTERNATIONAL GOVERNMENT BOND FUND WELLS FARGO LARGE CAP STOCK FUNDS WELLS FARGO MUNICIPAL INCOME FUNDS WELLS FARGO SMALL, MID, ALL CAP STOCK FUNDS WELLS FARGO SMALL TO MID CAP STOCK FUNDS WELLS FARGO SPECIALTY FUNDS WELLS FARGO TARGET DATE FUNDS WELLS FARGO U.S. CORE BOND FUND WELLS FARGO VARIABLE TRUST FUNDS WELLS FARGO WEALTHBUILDER FUNDS (Each a "Fund", together the Funds ) At a meeting held on November 9-10, 2017, the Board of Trustees of the Funds approved a change to the Policies and Procedures for Disclosure of Fund Portfolio Holdings. Effective immediately, in the section entitled Policies and Procedures for Disclosure of Fund Portfolio Holdings in each Fund s SAI, the following sentence is added to the end of Section E: As a third-party provider of software services, Diligent Corporation has been approved to receive non-public information concerning the Funds portfolio holdings. November 13, 2017

10 TABLE OF CONTENTS Historical Fund Information Fund Investment Policies and Risks Fundamental Investment Policies Non-Fundamental Investment Policies Permitted Investment Activities and Certain Associated Risks Underlying Funds Trustees and Officers Manager and Other Service Providers Manager and Class-Level Administrator Portfolio Managers Distributor and Shareholder Servicing Agent Custodian and Fund Accountant Transfer and Distribution Disbursing Agent Independent Registered Public Accounting Firm Code of Ethics Proxy Voting Policies and Procedures Policies and Procedures for Disclosure of Fund Portfolio Holdings Brokerage Determination of Net Asset Value Additional Purchase and Redemption Information U.S. Federal Income Taxes Control Persons and Principal Fund Holders

11 HISTORICAL FUND INFORMATION The Trust was organized as a Delaware statutory trust on March 10, On March 25, 1999, the Board of Trustees of Norwest Advantage Funds ("Norwest"), the Board of Directors of Stagecoach Funds, Inc. ("Stagecoach") and the Board of Trustees of the Trust (the "Board") approved an Agreement and Plan of Reorganization providing for, among other things, the transfer of the assets and stated liabilities of various predecessor Norwest and Stagecoach portfolios to certain Funds of the Trust (the "Reorganization"). Prior to November 5, 1999, the effective date of the Reorganization, the Trust had only nominal assets. On December 16, 2002, the Boards of Trustees of The Montgomery Funds and The Montgomery Funds II ("Montgomery") approved an Agreement and Plan of Reorganization providing for, among other things, the transfer of the assets and stated liabilities of various predecessor Montgomery portfolios into various Funds of the Trust. The effective date of the reorganization was June 9, On February 3, 2004, the Board and on February 18, 2004, the Board of Trustees of The Advisors' Inner Circle Fund ("AIC Trust") approved an Agreement and Plan of Reorganization providing for, among other things, the transfer of the assets and stated liabilities of various predecessor AIC Trust portfolios into various Funds of the Trust. The effective date of the reorganization was July 26, In August and September 2004, the Boards of Directors of the Strong family of funds ("Strong") and the Board approved an Agreement and Plan of Reorganization providing for, among other things, the transfer of the assets and stated liabilities of various predecessor Strong mutual funds into various Funds of the Trust. The effective date of the reorganization was April 8, On December 30, 2009, the Board of Trustees of Evergreen Funds ("Evergreen") and on January 11, 2010 the Board approved an Agreement and Plan of Reorganization providing for, among other things, the transfer of the assets and stated liabilities of various predecessor Evergreen portfolios and Wells Fargo Advantage Funds portfolios to certain Funds of the Trust. The effective date of the reorganization was July 12, 2010 for certain Evergreen Funds and July 19, 2010 for the remainder of the Evergreen Funds. On December 15, 2015, the Wells Fargo Advantage Funds changed its name to the Wells Fargo Funds. The Asset Allocation Fund commenced operations on July 19, 2010, as successor to Evergreen Asset Allocation Fund. The predecessor fund was organized as a Delaware statutory trust on September 18, The predecessor fund was a series of Evergreen Equity Trust. FUND INVESTMENT POLICIES AND RISKS Fundamental Investment Policies The Fund has adopted the following fundamental investment policies; that is, they may not be changed without approval by the holders of a majority (as defined under the 1940 Act) of the outstanding voting securities of the Fund. The Fund may not: (1) purchase the securities of issuers conducting their principal business activity in the same industry if, immediately after the purchase and as a result thereof, the value of the Fund's investments in that industry would equal or exceed 25% of the current value of the Fund's total assets, provided that this restriction does not limit the Fund's: (i) investments in securities of other investment companies, (ii) investments in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, or (iii) investments in repurchase agreements. (2) purchase securities of any issuer if, as a result, with respect to 75% of a Fund's total assets, more than 5% of the value of its total assets would be invested in the securities of any one issuer or the Fund's ownership would be more than 10% of the outstanding voting securities of such issuer, provided that this restriction does not limit a Fund's investments in securities issued or guaranteed by the U.S. Government, its agencies and instrumentalities, or investments in securities of other investment companies; (3) borrow money, except to the extent permitted under the 1940 Act, including the rules, regulations and any exemptive orders obtained thereunder; (4) issue senior securities, except to the extent permitted under the 1940 Act, including the rules, regulations and any exemptive orders obtained thereunder; (5) make loans to other parties if, as a result, the aggregate value of such loans would exceed one-third of a Fund's total assets. For the purposes of this limitation, entering into repurchase agreements, lending securities and acquiring any debt securities are not deemed to be the making of loans; 2 Wells Fargo Funds Trust

12 (6) underwrite securities of other issuers, except to the extent that the purchase of permitted investments directly from the issuer thereof or from an underwriter for an issuer and the later disposition of such securities in accordance with a Fund's investment program may be deemed to be an underwriting; (7) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a Fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (8) purchase or sell commodities, provided that (i) currency will not be deemed to be a commodity for purposes of this restriction, (ii) this restriction does not limit the purchase or sale of futures contracts, forward contracts or options, and (iii) this restriction does not limit the purchase or sale of securities or other instruments backed by commodities or the purchase or sale of commodities acquired as a result of ownership of securities or other instruments. Non-Fundamental Investment Policies The Fund has adopted the following non-fundamental policies; that is, they may be changed by the Trustees at any time without approval of the Fund's shareholders. (1) The Fund may invest in shares of other investment companies to the extent permitted under the 1940 Act, including the rules, regulations and any exemptive orders obtained thereunder, provided however, that no Fund that has knowledge that its shares are purchased by another investment company investor pursuant to Section 12(d)(1)(G) of the 1940 Act will acquire any securities of registered open-end management investment companies or registered unit investment trusts in reliance on Section 12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act. (2) The Fund may not invest or hold more than 15% of the Fund's net assets in illiquid securities. For this purpose, illiquid securities include, among others, (a) securities that are illiquid by virtue of the absence of a readily available market or legal or contractual restrictions on resale, (b) fixed time deposits that are subject to withdrawal penalties and that have maturities of more than seven days, and (c) repurchase agreements not terminable within seven days. (3) The Fund may lend securities from its portfolio to approved brokers, dealers and financial institutions, to the extent permitted under the 1940 Act, including the rules, regulations and exemptions thereunder, which currently limit such activities to one-third of the value of the Fund's total assets (including the value of the collateral received). Any such loans of portfolio securities will be fully collateralized based on values that are marked-to-market daily. (4) The Fund may not make investments for the purpose of exercising control or management, provided that this restriction does not limit the Fund's investments in securities of other investment companies or investments in entities created under the laws of foreign countries to facilitate investment in securities of that country. (5) The Fund may not purchase securities on margin (except for short-term credits necessary for the clearance of transactions). (6) The Fund may not sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short (short sales "against the box"), and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. Further Explanation of Investment Policies Notwithstanding the foregoing policies, any other investment companies in which the Fund may invest have adopted their own investment policies, which may be more or less restrictive than those listed above, thereby allowing the Fund to participate in certain investment strategies indirectly that are prohibited under the fundamental and non-fundamental investment policies listed above. With respect to repurchase agreements, the Fund invests only in repurchase agreements that are fully collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. For purposes of the Fund's fundamental investment policy with respect to concentration, the Fund does not consider such repurchase agreements to constitute an industry or group of industries because the Fund chooses to look through such securities to the underlying collateral, which is itself excepted from the Fund's concentration policy. The Fund is a commodity pool under the Commodity Exchange Act of 1936, as amended ("CEA"). The Fund's investment adviser (the "Adviser") is registered as a commodity pool operator ("CPO) under the CEA with respect to the Fund. As a result, additional Commodity Futures Trading Commission ("CFTC") disclosure, reporting and recording keeping obligations apply to the Fund. The Fund's CPO registration relates to the activities of the Fund's wholly owned Cayman subsidiary whose purpose is to make direct investments in various derivatives, including commodity-linked derivatives. Wells Fargo Funds Trust 3

13 Permitted Investment Activities and Certain Associated Risks The Fund seeks to provide investors with total return through investments in open-end mutual funds advised by Grantham, Mayo, Van Otterloo & Co. LLC ("GMO"). The Fund invests all of its assets in Asset Allocation Trust, a fund-of-funds which allocates its assets among GMO-managed mutual funds (the "underlying funds") investing in both U.S. and foreign equity and debt securities, and, from time to time, other alternative asset classes. Asset Allocation Trust may hold securities (particularly assetbacked securities) directly or through one or more subsidiaries or other entities. Through its indirect investment in the underlying funds, the Fund may be invested in a wide range of securities. For a further description of each underlying fund's investment objective and principal strategies as well as additional information regarding expected name changes, mergers and liquidations, see "Description of Underlying Funds" in the prospectus. For a further description of each underlying fund's risks, as well as a description of each underlying fund's benchmark, see "Underlying Funds" below. Underlying Funds Fund GMO Alpha Only Fund GMO Asset Allocation Bond Fund GMO Core Plus Bond Fund GMO Currency Hedged International Bond Fund GMO Emerging Countries Fund GMO Emerging Country Debt Fund GMO Emerging Domestic Opportunities Fund GMO Emerging Markets Fund GMO Foreign Fund GMO Foreign Small Companies Fund Principal Risks Derivatives Risk; Short Sales Risk; Options Risk; Management Risk; Operational and Cyber Security Risks; Foreign Investment Risk; Market Risk; Leveraging Risk; Currency Risk; Counterparty Risk; Illiquidity Risk; Credit Risk; Small Company Risk; Market Disruption and Geopolitical Risk; Focused Investment Risk; Large Shareholder Risk; High Yield Securities Risk; Interest Rate Risk; Underlying Funds Risk; Non-Diversified Risk Market Risk; High Yield Securities Risk; Interest Rate Risk; Credit Risk; Illiquidity Risk; Counterparty Risk; Derivatives Risk; Short Sales Risk; Options Risk; Leveraging Risk; Mortgage- and Asset-Backed Securities Risk; Foreign Investment Risk; Currency Risk; Commodities Risk; Market Disruption and Geopolitical Risk; Focused Investment Risk; Management Risk; Operational and Cyber Security Risks; Underlying Funds Risk; Small Company Risk; Large Shareholder Risk; Non-Diversified Risk Market Risk; High Yield Securities Risk; Interest Rate Risk; Credit Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Leveraging Risk; Counterparty Risk; Mortgage- and Asset-Backed Securities Risk; Focused Investment Risk; Currency Risk; Management Risk; Operational and Cyber Security Risks; Underlying Funds Risk; Foreign Investment Risk; Large Shareholder Risk; Market Disruption and Geopolitical Risk; Small Company Risk; Non-Diversified Risk Market Risk; High Yield Securities Risk; Interest Rate Risk; Credit Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Leveraging Risk; Counterparty Risk; Mortgage- and Asset-Backed Securities Risk; Focused Investment Risk; Currency Risk; Management Risk; Operational and Cyber Security Risks; Underlying Funds Risk; Foreign Investment Risk; Large Shareholder Risk; Market Disruption and Geopolitical Risk; Small Company Risk; Non-Diversified Risk Market Risk; Foreign Investment Risk; Emerging Markets Risk; Currency Risk; Management Risk; Operational and Cyber Security Risks; Illiquidity Risk; Market Disruption and Geopolitical Risk; Small Company Risk; Counterparty Risk; Focused Investment Risk; Derivatives Risk; Short Sales Risk; Options Risk; Underlying Funds Risk; Leveraging Risk; Large Shareholder Risk; Non-Diversified Risk Credit Risk; Market Risk; High Yield Securities Risk; Interest Rate Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Counterparty Risk; Foreign Investment Risk; Emerging Markets Risk; Large Shareholder Risk; Currency Risk; Market Disruption and Geopolitical Risk; Focused Investment Risk; Underlying Funds Risk; Mortgage- and Asset-Backed Securities Risk; Leveraging Risk; Management Risk; Operational and Cyber Security Risks; Non-Diversified Risk Market Risk; Foreign Investment Risk; Emerging Markets Risk; Currency Risk; Management Risk; Operational and Cyber Security Risks; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Market Disruption and Geopolitical Risk; Small Company Risk; High Yield Securities Risk; Interest Rate Risk; Credit Risk; Counterparty Risk; Focused Investment Risk; Underlying Funds Risk; Leveraging Risk; Large Shareholder Risk; Non-Diversified Risk Market Risk; Foreign Investment Risk; Emerging Markets Risk; Currency Risk; Management Risk; Operational and Cyber Security Risks; Illiquidity Risk; Market Disruption and Geopolitical Risk; Small Company Risk; Counterparty Risk; Focused Investment Risk; Derivatives Risk; Short Sales Risk; Options Risk; Underlying Funds Risk; Leveraging Risk; Large Shareholder Risk; Non-Diversified Risk Market Risk; Foreign Investment Risk; Currency Risk; Management Risk; Operational and Cyber Security Risks; Small Company Risk; Focused Investment Risk; Market Disruption and Geopolitical Risk; Illiquidity Risk; Counterparty Risk; Leveraging Risk; Derivatives Risk; Short Sales Risk; Options Risk; Large Shareholder Risk; Non-Diversified Risk Small Company Risk; Market Risk; Foreign Investment Risk; Currency Risk; Illiquidity Risk; Management Risk; Operational and Cyber Security Risks; Focused Investment Risk; Market Disruption and Geopolitical Risk; Counterparty Risk; Leveraging Risk; Derivatives Risk; Short Sales Risk; Options Risk; Large Shareholder Risk 4 Wells Fargo Funds Trust

14 Fund GMO Global Bond Fund GMO International Large/Mid Cap Equity Fund GMO International Equity Fund GMO International Small Companies Fund GMO Opportunistic Income Fund GMO Quality Fund GMO Resources Fund GMO Risk Premium Fund GMO SGM Major Markets Fund GMO U.S. Equity Allocation Fund GMO U.S. Treasury Fund Principal Risks Currency Risk; Market Risk; High Yield Securities Risk; Interest Rate Risk; Credit Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Leveraging Risk; Counterparty Risk; Mortgage- and Asset-Backed Securities Risk; Focused Investment Risk; Management Risk; Operational and Cyber Security Risks; Underlying Funds Risk; Foreign Investment Risk; Emerging Markets Risk; Large Shareholder Risk; Market Disruption and Geopolitical Risk; Small Company Risk; Non-Diversified Risk Market Risk; Management Risk; Operational and Cyber Security Risks; Foreign Investment Risk; Currency Risk; Focused Investment Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Counterparty Risk; Leveraging Risk; Market Disruption and Geopolitical Risk; Large Shareholder Risk Market Risk; Management Risk; Operational and Cyber Security Risks; Foreign Investment Risk; Currency Risk; Focused Investment Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Counterparty Risk; Leveraging Risk; Small Company Risk; Market Disruption and Geopolitical Risk; Large Shareholder Risk Small Company Risk; Market Risk; Foreign Investment Risk; Currency Risk; Illiquidity Risk; Management Risk; Operational and Cyber Security Risks; Focused Investment Risk; Market Disruption and Geopolitical Risk; Counterparty Risk; Leveraging Risk; Derivatives Risk; Short Sales Risk; Options Risk; Large Shareholder Risk Counterparty Risk; Credit Risk; Currency Risk; Derivatives and Short Sales Risk; Focused Investment Risk; Fund of Funds Risk; Futures Contracts Risk; Illiquidity Risk; Large Shareholder Risk; Leveraging Risk; Management and Operational Risk; Market Disruption and Geopolitical Risk; Market Risk - Asset- Backed Securities; Market Risk - Equities; Market Risk - Fixed Income; Non-Diversified Funds; Non-U.S. Investment Risk; Small Company Risk Market Risk; Management Risk; Operational and Cyber Security Risks; Focused Investment Risk; Foreign Investment Risk; Currency Risk; Small Company Risk; Illiquidity Risk; Market Disruption and Geopolitical Risk; Counterparty Risk; Derivatives Risk; Short Sales Risk; Options Risk; Leveraging Risk; Large Shareholder Risk; Non-Diversified Risk Focused Investment Risk; Commodities Risk; Market Risk; Management Risk; Operational and Cyber Security Risks; Foreign Investment Risk; Market Disruption and Geopolitical Risk; Currency Risk; Illiquidity Risk; Small Company Risk; Derivatives Risk; Short Sales Risk; Options Risk; Counterparty Risk; Leveraging Risk; Large Shareholder Risk; Merger Arbitrage Risk; Non-Diversified Risk Market Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Management Risk; Operational and Cyber Security Risks; Counterparty Risk; Focused Investment Risk; Foreign Investment Risk; Currency Risk; Interest Rate Risk; Credit Risk; Small Company Risk; Market Disruption and Geopolitical Risk; Large Shareholder Risk; Non-Diversified Risk Management Risk; Operational and Cyber Security Risks; Market Risk; Currency Risk; Commodities Risk; Futures Contracts Risk; High Yield Securities Risk; Interest Rate Risk; Foreign Investment Risk; Market Disruption and Geopolitical Risk; Derivatives Risk; Short Sales Risk; Options Risk; Leveraging Risk; Focused Investment Risk; Counterparty Risk; Mortgage- and Asset-Backed Securities Risk; Credit Risk; Illiquidity Risk; Underlying Funds Risk; Large Shareholder Risk; Non-Diversified Risk Market Risk; Management Risk; Operational and Cyber Security Risks; Focused Investment Risk; Illiquidity Risk; Derivatives Risk; Short Sales Risk; Options Risk; Counterparty Risk; Leveraging Risk; Small Company Risk; Market Disruption and Geopolitical Risk; Large Shareholder Risk Market Risk; Interest Rate Risk; Credit Risk; Focused Investment Risk; Large Shareholder Risk; Management Risk; Operational and Cyber Security Risks; Market Disruption and Geopolitical Risk The principal risks of each GMO fund are identified in the summaries above under "Principal Risks." Certain of the risks are described under "Principal Risks" in the Fund's prospectus. In addition, the following are descriptions of other identified risks: Management Risk. Each underlying fund is subject to management risk because it relies on the Manager's ability to achieve its investment objective. Each underlying fund runs the risk that the Manager's investment techniques will fail to produce desired results and cause the underlying fund to incur significant losses. The Manager also may fail to use derivatives effectively, choosing to hedge or not to hedge positions at disadvantageous times. For many underlying funds, the Manager often uses quantitative models as part of its investment process. The Manager's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations(e.g., inaccuracies, staleness) that could adversely affect an underlying fund's performance. The underlying funds also run the risk that the Manager's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong. GMO relies heavily on quantitative models in making investment decisions for SGM Major Markets Fund. The usefulness of GMO's models may be diminished by the faulty incorporation of mathematical models into computer code, by reliance on proprietary and third-party technology that may include errors, omissions, bugs, or viruses, and by the retrieval of limited or imperfect data for processing by the model. These risks are present in the ordinary course of business and are more likely to occur when GMO is making changes to its models. Any of these risks could adversely affect a Fund's performance. There can be no Wells Fargo Funds Trust 5

15 assurance that key personnel of the Manager will continue to be employed by the Manager. The loss of their services could have an adverse impact on the Manager's ability to achieve the underlying funds' investment objectives. The underlying funds also are subject to the risk of loss as a result of other services provided by the Manager and other service providers, including pricing, administrative, accounting, tax, legal, custody, transfer agency, and other services. Operational risk includes the possibility of loss caused by inadequate procedures and controls, human error, and system failures by a service provider. For example, trading delays or errors could prevent an underlying fund from benefiting from potential investment gains or avoiding losses. In addition, a service provider may be unable to provide a net asset value ("NAV") for an underlying fund or share class on a timely basis. The Manager is not contractually liable to the underlying funds for losses associated with operational risk absent its willful misfeasance, bad faith, gross negligence, or reckless disregard of its contractual obligations to provide services to the Funds. Other Fund service providers also have contractual limitations on their liability to the underlying funds for losses resulting from their errors. Non-Diversification Risk. Some of the underlying funds in which the Trust invests are not "diversified" investment companies within the meaning of the Investment Company Act of 1940, as amended. This means they are allowed to invest in the securities of relatively few issuers. As a result, they may be subject to greater credit, market and other risks, and poor performance by a single issuer may have a greater impact on their performance, than if they were "diversified." Merger Arbitrage Risk. Some underlying funds may engage in transactions in which the underlying fund purchases securities at prices below the value of the consideration GMO expects to be paid for them upon consummation of a proposed merger, exchange offer, tender offer, or other similar transaction ("merger arbitrage transactions"). The purchase price paid by the underlying fund may substantially exceed the market price of the securities before the announcement of the transaction. If an underlying fund engages in a merger arbitrage transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the underlying fund may decline sharply, resulting in losses to the underlying fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. A merger arbitrage transaction can fail for many reasons, including regulatory and antitrust restrictions, political motivations, industry weakness, stock specific events, failed financings, and general market declines. Merger arbitrage strategies depend for success on the overall volume of merger activity, which has historically been cyclical. When merger activity is low, GMO may be unable to identify enough opportunities to provide sufficient diversification. Merger arbitrage strategies are subject to the risk of overall market movements, and an underlying fund may experience losses even if a transaction is consummated. An underlying fund's investments in derivatives or short sales of securities to hedge or otherwise adjust long or short investment exposure in connection with a merger arbitrage transaction may not perform as GMO expected or may otherwise reduce the underlying fund's gains or increase its losses. Also, an underlying fund may be unable to hedge against market fluctuations or other risks. In addition, an underlying fund that sells securities short that GMO expects it to receive upon consummation of a transaction but it does not actually receive (and thus has an unintended "naked" short position) may be required to cover its short position at a time when the securities sold short have appreciated in value, thus resulting in a loss. Commodities Risk. Commodity prices can be extremely volatile and are affected by many factors. Exposure to commodities can cause the net asset value of an underlying fund's shares to decline or fluctuate in a rapid and unpredictable manner. The value of commodity-related derivatives or indirect investments in commodities may fluctuate more than the commodity, commodities or commodity index to which they relate. Other Risks Counterparty Risk. Funds that enter into contracts with counterparties, such as repurchase or reverse repurchase agreements or OTC derivatives contracts, or that lend their securities run the risk that the counterparty will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. If a counterparty fails to meet its contractual obligations, goes bankrupt, or otherwise experiences a business interruption, the Fund could miss investment opportunities or otherwise hold investments it would prefer to sell, resulting in losses for the Fund. In addition, a Fund may suffer losses if a counterparty fails to comply with applicable laws or other requirements. The Funds are not subject to any limits on their exposure to any one counterparty nor to a requirement that counterparties with whom they enter into contracts maintain a specific rating by a nationally recognized rating organization. Counterparty risk is pronounced during unusually adverse market conditions and is particularly acute in environments (like those of 2008) in which financial services firms are exposed to systemic risks of the type evidenced by the insolvency of Lehman Brothers and subsequent market disruptions. 6 Wells Fargo Funds Trust

16 Participants in OTC derivatives markets typically are not subject to the same level of credit evaluation and regulatory oversight as are members of exchange-based markets, and, therefore, OTC derivatives generally expose a Fund to greater counterparty risk than exchange-traded derivatives. A Fund is subject to the risk that a counterparty will not settle a derivative in accordance with its terms because of a dispute over the terms of the contract (whether or not bona fide) or because of a credit or liquidity problem. If a counterparty's obligation to a Fund is not collateralized, then the Fund is essentially an unsecured creditor of the counterparty. If a counterparty defaults, the Fund will have contractual remedies (whether or not the obligation is collateralized), but the Fund may be unable to enforce them, thus causing the Fund to suffer a loss. Counterparty risk is greater for derivatives with longer maturities because of the longer time during which events may occur that prevent settlement. Counterparty risk also is greater when a Fund has entered into derivatives contracts with a single or small group of counterparties as it sometimes does as a result of its use of swaps and other OTC derivatives. Funds that use swap contracts are subject, in particular, to the creditworthiness of the counterparties because some types of swap contracts have terms longer than six months (and, in some cases, decades). The creditworthiness of a counterparty may be adversely affected by greater than average volatility in the markets, even if the counterparty's net market exposure is small relative to its capital. Counterparty risk still exists even if a counterparty's obligations are secured by collateral because the Fund's interest in the collateral may not be perfected or additional collateral may not be promptly posted as required. GMO's view with respect to a particular counterparty is subject to change. The fact, however, that it changes adversely (whether due to external events or otherwise) does not mean a Fund's existing transactions with that counterparty will necessarily be terminated or modified. In addition, a Fund may enter into new transactions with a counterparty that GMO no longer considers a desirable counterparty if the transaction is primarily designed to reduce the Fund's overall risk of potential exposure to that counterparty (for example, re-establishing the transaction with a lower notional amount or entering into a countervailing trade with the same counterparty). The Funds also are subject to counterparty risk because they execute their securities transactions through brokers and dealers. If a broker or dealer fails to meet its contractual obligations, goes bankrupt, or otherwise experiences a business interruption, the Funds could miss investment opportunities or be unable to dispose of investments they would prefer to sell, resulting in losses for the Funds. Counterparty risk with respect to derivatives has been and will continue to be affected by new rules and regulations relating to the derivatives market. As described under "Derivatives and Short Sales Risk," some derivatives transactions are required to be centrally cleared, and a party to a cleared derivatives transaction is subject to the credit risk of the clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants with respect to derivatives that are centrally cleared is concentrated in a few clearing houses, and it is not clear how an insolvency proceeding of a clearing house would be conducted and what impact an insolvency of a clearing house would have on the financial system. Also, in the event of a counterparty's (or its affiliate's) insolvency, the Funds' ability to exercise remedies, such as the termination of transactions, netting of obligations and realization on collateral, could be stayed or eliminated under new special resolution regimes adopted in the United States, the European Union and various other jurisdictions. Such regimes provide governmental authorities with broad authority to intervene when a financial institution is experiencing financial difficulty. In particular, with respect to counterparties who are subject to such proceedings in the European Union, the liabilities of such counterparties to the Funds could be reduced, eliminated, or converted to equity in such counterparties (sometimes referred to as a "bail in"). Leveraging Risk. The use of reverse repurchase agreements and other derivatives and securities lending creates leverage (i.e., a Fund's investment exposures exceed its net asset value). Leverage increases a Fund's losses when the value of its investments (including derivatives) declines. Because many derivatives have a leverage component (i.e., a notional value in excess of the assets needed to establish or maintain the derivative position), adverse changes in the value or level of the underlying asset, rate, or index may result in a loss substantially greater than the amount invested in the derivative itself. In the case of swaps, the risk of loss generally is related to a notional principal amount, even if the parties have not made any initial investment. Some derivatives have the potential for unlimited loss, regardless of the size of the initial investment. A Fund's portfolio also will be leveraged if it borrows money to meet redemption requests or settle investment transactions or if it exercises its right to delay payment on a redemption. A Fund may manage some of its derivative positions by offsetting derivative positions against one another or against other assets. To the extent offsetting positions do not behave in relation to one another as expected, a Fund may perform as if it were leveraged. Liquidation Risk There can be no assurance that a Fund will grow to or maintain a viable size. To the extent that a Fund does not grow to or maintain a viable size, it may be liquidated, and the expenses, timing and tax consequences of such liquidation may not be favorable to some shareholders. In addition, pursuant to section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and certain rules promulgated thereunder (collectively known as the "Volcker Rule"), if the Manager and/or its Wells Fargo Funds Trust 7