UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09255

Wells Fargo Variable Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: The following 9 series of Wells Fargo Variable Trust have a December 31 fiscal year end: Wells Fargo Advantage VT Discovery Fund, Wells Fargo Advantage VT Index Asset Allocation Fund, Wells Fargo Advantage VT International Equity Fund, Wells Fargo Advantage VT Intrinsic Value Fund, Wells Fargo Advantage VT Omega Growth Fund, Wells Fargo Advantage VT Opportunity Fund, Wells Fargo Advantage VT Small Cap Growth Fund, Wells Fargo Advantage VT Small Cap Value Fund, and Wells Fargo Advantage VT Total Return Bond Fund.

Date of reporting period: December 31, 2014

ITEM 1. REPORT TO STOCKHOLDERS

Wells Fargo Advantage VT Discovery Fund^SM

Annual Report

December 31, 2014

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	18
Report of independent registered public accounting firm	22
Other information	23
List of abbreviations	26

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Discovery Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Discovery Fund for the 12-month period that ended December 31, 2014. Improving U.S. economic data and strong corporate earnings helped drive positive returns for U.S. stocks overall in 2014. In contrast, many economies and markets elsewhere in the world faced significant ongoing challenges during the period.

2014’s fitful start gave way to a rally that carried through the second quarter of 2014.

Following a difficult first quarter for the U.S. economy—when unusually harsh weather kept consumers at home, disrupted business activities, and ultimately drove a 2.1% contraction in real gross domestic product (GDP)—the second quarter of 2014 brought warmer temperatures, and the U.S. economy picked up steam. Investors were heartened by encouraging economic data, driving stocks higher. In Europe, signs of economic improvement faded when GDP stagnated during the second quarter. Although select peripheral countries, such as Spain and Portugal, provided bright spots, some of Europe’s larger economies were pressured by weak economic growth and potential deflation. European stock returns generally were positive but lackluster.

U.S. Federal Reserve (Fed) officials continued winding down their bond-buying program during the second quarter, leaving it on pace to end in 2014. They also revisited the question of when to begin raising short-term interest rates from near zero and released new projections showing rates rising more than previously expected in 2015 and 2016; however, they slightly reduced their projections for rates over the longer term. The markets took this information in stride, with both U.S. stocks and bonds rallying.

Positive U.S. economic data—but increased tensions abroad—led to heightened volatility in the third quarter of 2014.

The third quarter brought a series of stock market surges that were interrupted by bouts of volatility as interest-rate concerns in the U.S. and increased tensions abroad triggered heightened investor uncertainty. In July, an escalating Russia/Ukraine situation and a growing perception that the Fed would raise short-term interest rates sooner than expected caused investors to pull back toward month-end; as a result, the S&P 500 Index¹ dropped into negative territory for its overall monthly return. However, August brought a bounce-back—the S&P 500 Index delivered its largest monthly gain since February 2014 on a string of positive economic news, led by an upwardly revised 4.2% estimate of second-quarter 2014 GDP growth. Then, in September, stock market volatility rose as positive economic data became overshadowed at times by growing discomfort over escalating tensions in Ukraine and the Middle East. Signs of slowing growth in Europe and China also concerned investors. Ultimately, U.S. stocks ended the third quarter up slightly overall, buoyed largely by another upward revision of second-quarter GDP growth (to 4.6%). Strong corporate earnings also contributed to market gains, with a large number of U.S. companies exceeding consensus estimates for both revenues and earnings per share.

^1. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Discovery Fund 3

The fourth quarter of 2014 brought continued improvement in the U.S.; international economies remained challenged.

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014. The last several, in December, were spurred by investor optimism following Fed Chair Janet Yellen’s comment that the Fed would be patient in its timing of an interest-rate increase. U.S. stocks also were boosted by positive data reflecting an economy continuing to strengthen. November’s 5.8% unemployment rate was down from 7.0% a year earlier, and the number of jobs being added continued to expand, keeping U.S. employers on pace to hire nearly three million workers during 2014—the most since 1999. In addition, the U.S. economy’s third-quarter growth rate was revised upward during the quarter, to 5.0%—its fastest pace in 11 years. Meanwhile, U.S. companies continued to report strong earnings during the quarter, providing an additional catalyst for stocks. The steadily brightening U.S. economy energized consumers, who were further buoyed by much lower prices at the gasoline pump. During the fourth quarter, gasoline prices fell to their lowest levels in five years, according to the American Automobile Association.

As the U.S. churned forward, major economies elsewhere in the world faced significant ongoing challenges. Growth in China continued to slow, Japan remained in a recession that had begun the previous quarter, and Russia’s economy contracted for the first time since 2009 as the country struggled under the weight of slumping oil prices, international sanctions, and massive outflows of capital. In the eurozone, growth remained sluggish as member countries faced an environment of low demand, high unemployment, and weak business investment.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014.

We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

4 Wells Fargo Advantage VT Discovery Fund Performance highlights (unaudited)

The Fund is currently closed to new insurance companies¹.

Investment objective

The Fund seeks long-term capital appreciation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Thomas J. Pence, CFA

Michael T. Smith, CFA

Chris Warner, CFA

Average annual total returns (%) as of December 31, 2014

								Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		Gross		Net3
Class 2	5-8-1992		0.36		18.26		10.61		1.16		1.15
Russell 2500TM Growth Index4	–		7.05		17.27		9.37		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

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

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Discovery Fund 5

Growth of $10,000 investment⁵ as of December 31, 2014

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

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

^3.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at the amount shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

^4.  The Russell 2500^TM Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

^5.  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 2500^TM Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^6.  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

^7.  The ten largest equity holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^8.  Sector distribution is subject to change and is calculated based on the total long-term investments of the Fund.

* This security was not held in the Fund at the end of the reporting period.

6 Wells Fargo Advantage VT Discovery Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund lagged its benchmark, the Russell 2500 Growth Index, for the 12-month period that ended December 31, 2014.

n Positioning in the information technology (IT) and industrials sectors was the most significant challenge to relative performance; effective stock selection in the health care sector contributed positively to the Fund’s results.

Overall, 2014 was a good year for the U.S. economy and stock market.

Encouraging U.S. economic data, coupled with strong corporate earnings, drove positive U.S. stock returns for 2014 as measured by the S&P 500 Index⁶. U.S. stocks (led by larger caps) outperformed most international markets for the year despite near-constant market volatility driven by a series of geopolitical and macroeconomic issues, such as the potential for a U.S. interest-rate increase earlier than many investors had anticipated and the situation in Ukraine. The heightened uncertainty drove stock investors to at times seek the perceived safety of larger-cap stocks with lower relative valuations and higher dividend yields. This investor trend was especially evident during the two-month period from early March through early May 2014 when higher-valuation, higher-growth companies significantly underperformed slower-growing companies.

Ten largest equity holdings7 (%) as of December 31, 2014
SBA Communications Corporation Class A	2.33
Wabtec Corporation	2.14
LKQ Corporation	2.09
Old Dominion Freight Line Incorporated	2.00
CoStar Group Incorporated	1.93
Polaris Industries Incorporated	1.87
SEI Investments Company	1.84
Cooper Companies Incorporated	1.78
Cinemark Holdings Incorporated	1.73
Carlisle Companies Incorporated	1.68

Portfolio construction is focused on three types of growth companies.

We believe that, in any market environment, a portfolio’s construction must balance risk and return. We strive to provide this balance through a portfolio composed of three distinct types of growth companies. Core growth holdings (typically 40%–50% of assets) are companies that we believe have stable growth records, proven management teams, and relatively low volatility. Developing situations (typically 40%–50% of assets) are firms we believe are entering a period of accelerated growth driven by a new product, business plan, or management team. The remainder of the portfolio (typically 5%–10% of assets) is dedicated to valuation opportunities—holdings we believe carry above-average

growth potential and relatively high volatility. Our conviction level drives each stock’s relative weight in the portfolio. This direct relationship helps us position our highest-conviction ideas to potentially make a significant impact on performance.

Positioning in the IT and industrials sectors challenged the Fund’s relative performance.

Positioning in the IT sector hindered performance. As investors shed higher-valuation stocks early in 2014, IT holdings suffered because the innovation implicit in these stocks often drives premium valuations. Cornerstone OnDemand Incorporated, a provider of talent and management software, declined after the company reported lower sales and earnings than expected. However, the revenue shortfall was due to timing rather than weakness in the core business; fundamentals remained strong, and the company’s revenue per user continued to grow along with the average number of products per client. ChannelAdvisor Corporation^*, which works with small businesses to aggregate products on multiple online channels, also was pressured. Although the company beat guidance on all metrics, its shares declined in April 2014 when high-valuation stocks were out of favor.

Railroad company Kansas City Southern declined after the company’s results fell short of expectations. The company’s rail network was strategically positioned to participate in increasing trade between the U.S. and Mexico. However, regulatory concerns threatened the company’s exclusivity agreements within Mexico, and Kansas City Southern’s shares declined. With the increased uncertainty, we sold the position, consistent with our investment process. DigitalGlobe Incorporated, which provides satellite imagery to governments and private businesses, declined after geopolitical and currency factors hurt sales. Despite our expectations that the company would experience accelerating free cash flow in coming years, the timing of this acceleration became less clear; we sold the position, consistent with our investment process.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Discovery Fund 7

Holdings in the health care sector contributed positively to results.

Within the health care sector, we tend to focus on two types of firms: those offering product-specific innovations capable of improving patient outcomes and those providing technology and infrastructure to improve the efficiency of health care systems. Biotechnology holdings, which represent our innovation theme, contributed positively to Fund performance in 2014. Shares of Puma Biotechnology Incorporated rose following the announcement of positive phase III data for the company’s breast cancer drug, Neratinib. Contact lens manufacturer The Cooper Companies Incorporated also benefited performance; the firm enjoys a strong market share and is a leader in the move toward daily silicone hydrogel lenses.

Sector distribution⁸ as of December 31, 2014

We look forward to 2015.

As 2014 ended, the U.S. economy clearly was moving forward. We believe falling gas prices, a healthier job market, stable home values, and a stronger U.S. dollar could lead U.S. consumers to increase spending in 2015, which could initiate a cycle of rising business investment. However, we are not certain the U.S. economy is ready to shift into high gear. Global deflation, the impact of a rising U.S. dollar on international economies, and the recent collapse in commodity prices are major unresolved concerns that may hamper the U.S. economy in 2015.

Despite the Fund’s relative underperformance in 2014, we remain committed to our investment process. Many

Fund holdings have continued to benefit from consolidation, have expanded capacity, and have taken market share. We have strong conviction in these holdings, and we believe a catalyst may eventually emerge that will lead investors to increasingly recognize the attractive valuations of high-growth companies and more consistently reward those offering strong, sustainable growth.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Discovery Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	1,016.26	$	5.79		1.14	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.46	$	5.80		1.14	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Discovery Fund 9

Security name	Shares		Value
Common Stocks: 99.21%
Consumer Discretionary: 21.52%
Auto Components: 1.20%
Gentherm Incorporated †		45,469	$	1,665,075
Distributors: 2.09%
LKQ Corporation †		103,124		2,899,847
Diversified Consumer Services: 1.49%
Bright Horizons Family Solutions Incorporated †		43,900		2,063,739
Hotels, Restaurants & Leisure: 3.58%
Domino’s Pizza Incorporated		24,700		2,325,999
Extended Stay America Incorporated		50,550		976,121
Krispy Kreme Doughnuts Incorporated †		84,100		1,660,134
				4,962,254
Internet & Catalog Retail: 1.87%
MakeMyTrip Limited †		52,214		1,357,042
Vipshop Holdings Limited ADS †		63,019		1,231,391
				2,588,433
Leisure Products: 1.87%
Polaris Industries Incorporated		17,130		2,590,741
Media: 1.73%
Cinemark Holdings Incorporated		67,200		2,390,976
Specialty Retail: 3.70%
Advance Auto Parts Incorporated		10,089		1,606,976
Lithia Motors Incorporated Class A		19,200		1,664,448
Restoration Hardware Holdings Incorporated †«		19,345		1,857,313
				5,128,737
Textiles, Apparel & Luxury Goods: 3.99%
Carter’s Incorporated		26,000		2,270,060
Kate Spade & Company †		53,102		1,699,795
Under Armour Incorporated Class A †		22,800		1,548,120
				5,517,975
Consumer Staples: 1.23%
Beverages: 1.23%
Constellation Brands Incorporated Class A †		17,400		1,708,158
Energy: 2.73%
Oil, Gas & Consumable Fuels: 2.73%
Delek US Holdings Incorporated		32,600		889,328
Diamondback Energy Incorporated †		30,400		1,817,312

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

10 Wells Fargo Advantage VT Discovery Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Rice Energy Incorporated †		26,800	$	561,996
Sanchez Energy Corporation †«		55,222		513,012
				3,781,648
Financials: 5.75%
Banks: 1.24%
Texas Capital Bancshares Incorporated †		31,624		1,718,132
Capital Markets: 4.22%
Affiliated Managers Group Incorporated †		8,600		1,825,264
Raymond James Financial Incorporated		25,500		1,460,895
SEI Investments Company		63,700		2,550,548
				5,836,707
Insurance: 0.17%
eHealth Incorporated †		9,370		233,500
REITs: 0.12%
OUTFRONT Media Incorporated		6,355		170,568
Health Care: 19.72%
Biotechnology: 8.39%
Alkermes plc †		38,800		2,272,128
Alnylam Pharmaceuticals Incorporated †		15,500		1,503,500
AMAG Pharmaceuticals Incorporated †		18,900		805,518
BioMarin Pharmaceutical Incorporated †		17,067		1,542,857
bluebird bio Incorporated †		8,300		761,276
Cepheid Incorporated †		36,465		1,974,215
Novavax Incorporated †«		166,934		989,919
NPS Pharmaceuticals Incorporated †		22,855		817,523
Puma Biotechnology Incorporated †		5,000		946,350
				11,613,286
Health Care Equipment & Supplies: 4.33%
Cooper Companies Incorporated		15,200		2,463,768
DexCom Incorporated †		27,381		1,507,324
IDEXX Laboratories Incorporated †		13,700		2,031,299
				6,002,391
Health Care Providers & Services: 3.83%
Community Health Systems Incorporated †		26,400		1,423,488
Envision Healthcare Holdings Incorporated †		56,858		1,972,404
VCA Antech Incorporated †		39,200		1,911,784
				5,307,676
Health Care Technology: 1.33%
athenahealth Incorporated †«		12,600		1,835,820

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Discovery Fund 11

Security name	Shares		Value
Pharmaceuticals: 1.84%
GW Pharmaceuticals plc ADR †«		6,900	$	466,992
Jazz Pharmaceuticals plc †		12,700		2,079,371
				2,546,363
Industrials: 21.54%
Aerospace & Defense: 1.54%
TASER International Incorporated †«		80,800		2,139,584
Airlines: 1.67%
Spirit Airlines Incorporated †		30,700		2,320,306
Construction & Engineering: 0.81%
Quanta Services Incorporated †		39,400		1,118,566
Electrical Equipment: 2.93%
Acuity Brands Incorporated		15,300		2,143,071
Sensata Technologies Holding NV †		36,468		1,911,288
				4,054,359
Industrial Conglomerates: 1.68%
Carlisle Companies Incorporated		25,857		2,333,336
Machinery: 7.25%
Allison Transmission Holdings Incorporated		52,600		1,783,140
Graco Incorporated		22,267		1,785,368
Proto Labs Incorporated †«		22,900		1,537,964
Snap-on Incorporated		14,372		1,965,227
Wabtec Corporation		34,100		2,962,949
				10,034,648
Professional Services: 1.20%
IHS Incorporated Class A †		14,544		1,656,271
Road & Rail: 3.36%
Old Dominion Freight Line Incorporated †		35,700		2,771,748
Swift Transportation Company †		65,598		1,878,071
				4,649,819
Trading Companies & Distributors: 1.10%
United Rentals Incorporated †		14,900		1,519,949
Information Technology: 21.60%
Communications Equipment: 1.63%
Palo Alto Networks Incorporated †		18,359		2,250,263
Electronic Equipment, Instruments & Components: 2.67%
Cognex Corporation †		49,800		2,058,234
FEI Company		18,200		1,644,370
				3,702,604

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

12 Wells Fargo Advantage VT Discovery Fund Portfolio of investments—December 31, 2014

Security name				Shares		Value
Internet Software & Services: 6.08%
Cornerstone OnDemand Incorporated †«					46,800	$	1,647,360
CoStar Group Incorporated †					14,579		2,677,142
HomeAway Incorporated †					31,066		925,145
Shutterstock Incorporated †					25,783		1,781,605
Yelp Incorporated †					25,418		1,391,127
							8,422,379
IT Services: 2.60%
Euronet Worldwide Incorporated †					26,085		1,432,067
Vantiv Incorporated Class A †					63,953		2,169,286
							3,601,353
Semiconductors & Semiconductor Equipment: 0.89%
Veeco Instruments Incorporated †					35,500		1,238,240
Software: 5.66%
Fleetmatics Group plc †«					43,204		1,533,310
Guidewire Software Incorporated †					38,100		1,929,003
ServiceNow Incorporated †					31,729		2,152,813
Solera Holdings Incorporated					10,138		518,863
Tableau Software Incorporated Class A †					20,092		1,702,998
							7,836,987
Technology Hardware, Storage & Peripherals: 2.07%
Nimble Storage Incorporated †«					62,800		1,727,000
Stratasys Limited †«					13,728		1,140,934
							2,867,934
Materials: 2.79%
Chemicals: 2.79%
Axalta Coating Systems Limited †					64,683		1,683,052
W.R. Grace & Company †					22,900		2,184,431
							3,867,483
Telecommunication Services: 2.33%
Wireless Telecommunication Services: 2.33%
SBA Communications Corporation Class A †					29,084		3,221,343
Total Common Stocks (Cost $115,804,855)							137,397,450
	Yield
Short-Term Investments: 8.42%
Investment Companies: 8.42%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.14	%		10,468,150		10,468,150
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08			1,194,308		1,194,308
Total Short-Term Investments (Cost $11,662,458)							11,662,458

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Discovery Fund 13

			Value
Total investments in securities (Cost $127,467,313) *	107.63	%	$	149,059,908
Other assets and liabilities, net	(7.63	)		(10,570,340	)
Total net assets	100.00	%	$	138,489,568

† Non-income-earning security

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $127,745,689 and unrealized gains (losses) consists of:

Gross unrealized gains	$	25,578,594
Gross unrealized losses		(4,264,375	)
Net unrealized gains	$	21,314,219

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

14 Wells Fargo Advantage VT Discovery Fund Statement of assets and liabilities—December 31, 2014

Assets
Investments
In unaffiliated securities (including $10,165,592 of securities loaned), at value (cost $115,804,855)	$	137,397,450
In affiliated securities, at value (cost $11,662,458)		11,662,458
Total investments, at value (cost $127,467,313)		149,059,908
Cash		70,056
Receivable for investments sold		1,122,946
Receivable for Fund shares sold		122,775
Receivable for dividends		20,584
Receivable for securities lending income		4,876
Prepaid expenses and other assets		8,409
Total assets		150,409,554
Liabilities
Payable for investments purchased		1,241,328
Payable for Fund shares redeemed		33,821
Payable upon receipt of securities loaned		10,468,150
Advisory fee payable		84,984
Distribution fee payable		30,352
Administration fee payable		15,783
Accrued expenses and other liabilities		45,568
Total liabilities		11,919,986
Total net assets	$	138,489,568
NET ASSETS CONSIST OF
Paid-in capital	$	96,841,335
Accumulated net realized gains on investments		20,055,638
Net unrealized gains on investments		21,592,595
Total net assets	$	138,489,568
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	138,489,568
Shares outstanding – Class 21		4,509,794
Net asset value per share – Class 2		$30.71

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

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

Statement of operations—year ended December 31, 2014 Wells Fargo Advantage VT Discovery Fund 15

Investment income
Dividends (net of foreign withholding taxes of $1,029)	$	615,671
Securities lending income, net		45,869
Income from affiliated securities		1,331
Total investment income		662,871
Expenses
Advisory fee		1,012,831
Administration fee		188,097
Distribution fee
Class 2		361,725
Custody and accounting fees		23,794
Professional fees		37,135
Shareholder report expenses		14,674
Trustees’ fees and expenses		10,588
Other fees and expenses		4,510
Total expenses		1,653,354
Less: Fee waivers and/or expense reimbursements		(14	)
Net expenses		1,653,340
Net investment loss		(990,469	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		20,144,541
Net change in unrealized gains (losses) on investments		(19,385,645	)
Net realized and unrealized gains (losses) on investments		758,896
Net decrease in net assets resulting from operations	$	(231,573	)

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

16 Wells Fargo Advantage VT Discovery Fund Statement of changes in net assets

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment loss				$	(990,469	)				$	(756,248	)
Net realized gains on investments					20,144,541						20,431,198
Net change in unrealized gains (losses) on investments					(19,385,645	)					28,686,095
Net increase (decrease) in net assets resulting from operations					(231,573	)					48,361,045
Distributions to shareholders from
Net investment income – Class 2					0						(9,591	)
Net realized gains – Class 2					(18,974,676	)					(3,722,690	)
Total distributions to shareholders					(18,974,676	)					(3,732,281	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		363,614			11,794,023			727,800			22,421,892
Reinvestment of distributions – Class 2		644,301			18,974,676			121,930			3,732,281
Payment for shares redeemed – Class 2		(999,205	)		(31,523,941	)		(779,470	)		(23,790,323	)
Net increase (decrease) in net assets resulting from capital share transactions					(755,242	)					2,363,850
Total increase (decrease) in net assets					(19,961,491	)					46,992,614
Net assets
Beginning of period					158,451,059						111,458,445
End of period				$	138,489,568					$	158,451,059
Accumulated net investment loss				$	0					$	0

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

Financial highlights Wells Fargo Advantage VT Discovery Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$35.20			$25.16			$21.37			$21.28			$15.70
Net investment loss		(0.22	)		(0.17	)		(0.01	)		(0.18	)		(0.13	)
Net realized and unrealized gains (losses) on investments		0.16			11.06			3.80			0.27			5.71
Total from investment operations		(0.06	)		10.89			3.79			0.09			5.58
Distributions to shareholders from
Net investment income		0.00			(0.00	)2		0.00			0.00			0.00
Net realized gains		(4.43	)		(0.85	)		0.00			0.00			0.00
Total distributions to shareholders		(4.43	)		(0.85	)		0.00			0.00			0.00
Net asset value, end of period		$30.71			$35.20			$25.16			$21.37			$21.28
Total return		0.36	%		43.80	%		17.74	%		0.42	%		35.54	%
Ratios to average net assets (annualized)
Gross expenses		1.14	%		1.16	%		1.21	%		1.18	%		1.26	%
Net expenses		1.14	%		1.15	%		1.15	%		1.15	%		1.15	%
Net investment loss		(0.68	)%		(0.56	)%		(0.03	)%		(0.75	)%		(0.71	)%
Supplemental data
Portfolio turnover rate		79	%		88	%		98	%		113	%		101	%
Net assets, end of period (000s omitted)		$138,490			$158,451			$111,458			$98,099			$110,755

^1.  After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

^2.  Amount is less than $0.005 per share.

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

18 Wells Fargo Advantage VT Discovery Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Discovery Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Security loans

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”).

Notes to financial statements Wells Fargo Advantage VT Discovery Fund 19

The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to net operating losses. At December 31, 2014, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss
$(990,469)	$990,469

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

20 Wells Fargo Advantage VT Discovery Fund Notes to financial statements

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	29,807,777	$	0	$	0	$	29,807,777
Consumer staples		1,708,158		0		0		1,708,158
Energy		3,781,648		0		0		3,781,648
Financials		7,958,907		0		0		7,958,907
Health care		27,305,536		0		0		27,305,536
Industrials		29,826,838		0		0		29,826,838
Information technology		29,919,760		0		0		29,919,760
Materials		3,867,483		0		0		3,867,483
Telecommunication services		3,221,343		0		0		3,221,343
Short-term investments
Investment companies		1,194,308		10,468,150		0		11,662,458
Total assets	$	138,591,758	$	10,468,150	$	0	$	149,059,908

Transfers in and transfers out are recognized at the end of the reporting period. At December 31, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.70% and declining to 0.55% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.70% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.35% as the average daily net assets of the Fund increase.

Administration fee

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 from the Fund an annual administration fee starting at 0.13% and declining to 0.11% as the average daily net assets of the Fund increase.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.15% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Notes to financial statements Wells Fargo Advantage VT Discovery Fund 21

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2014 were $113,859,299 and $131,296,454, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement, whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $226 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2014 and December 31, 2013 were as follows:

	Year ended December 31
	2014	2013
Ordinary income	$  6,355,354	$       9,591
Long-term capital gain	12,619,322	3,722,690

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains
$20,334,014	$21,314,219

8. INDEMNIFICATION

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

22 Wells Fargo Advantage VT Discovery Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Discovery Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Discovery Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

Other information (unaudited) Wells Fargo Advantage VT Discovery Fund 23

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 8.75% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2014.

Pursuant to Section 852 of the Internal Revenue Code, $12,619,322 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2014.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

24 Wells Fargo Advantage VT Discovery Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Advantage VT Discovery Fund 25

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management , LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2. The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

26 Wells Fargo Advantage VT Discovery Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

This page is intentionally left blank.

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230411 02-15

AVT1/AR147 12-14

Wells Fargo Advantage

VT Index Asset Allocation Fund

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	25
Statement of operations	26
Statement of changes in net assets	27
Financial highlights	28
Notes to financial statements	29
Report of independent registered public accounting firm	35
Other information	36
List of abbreviations	39

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Index Asset Allocation Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

U.S. equity and fixed-income investments delivered positive returns amid strengthening economic trends, improving employment data, and continued low interest rates.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Index Asset Allocation Fund for the 12-month period that ended December 31, 2014. U.S. equity and fixed-income investments delivered positive returns amid strengthening economic trends, improving employment data, and continued low interest rates. International investments did not fare as well. Overseas investment markets struggled to perform well in U.S. dollar terms, in part, due to substantial strengthening of the dollar in comparison with other currencies.

U.S stocks and bonds gained on positive economic news and continued U.S. Federal Reserve (Fed) accommodation.

U.S. stocks, as measured by the S&P 500 Index¹, recorded positive returns for the third consecutive year, gaining 13.7%. U.S. stocks overcame a sluggish start to 2014 that many attributed to a harsh winter. The Barclay’s U.S. Aggregate Bond Index² returned almost 6.0% for the year. U.S. bonds benefited as money flowed to domestic credit markets in pursuit of higher yields.

Data indicated that the U.S. economic recovery was strengthening. Department of Labor reports showed that the unemployment rate declined from 6.7% in December 2013 to 5.6% by the end of 2014. In addition, gross domestic product (GDP) growth rates increased throughout the year. The Commerce Department reported that the economy grew at 5.0% on an annualized basis in the third quarter, compared with a 4.5% growth rate in the second quarter.

The Federal Open Market Committee (FOMC), which is the Fed’s monetary policymaking body, kept its key interest rate near zero. The FOMC, which began to reduce (or taper) its bond-buying program by $10 billion per month in January 2014, completed the tapering in October. Some anticipated this action would lead to broadly higher interest rates. While some shorter-term interest rates increased, the U.S. Treasury yield curve flattened because longer-term interest rates declined. After the FOMC’s December meeting, Fed Chair Janet Yellen said the Fed will be patient on the timing of interest-rate increases, which encouraged investors to expect that the continued low-interest-rate policy would benefit equities heading into 2015.

A stronger dollar, growing geopolitical tensions, and slowing growth restrained international markets.

The climate for international investing was less favorable. The return for the MSCI All Country World Index (ex USA)³ was -3.9%. The Barclays Global Aggregate ex-U.S. Dollar Bond Index⁴ was down 3.1%. Even investors in international markets who earned positive returns in local currency terms saw their returns for the year turn negative upon translation into U.S. dollars because the dollar strengthened substantially.

^1.  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

^2.  The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

^3.  The MSCI All Country World Index (ex USA) includes large-, mid-, small-, and micro-cap segments for all developed markets countries in the index together with large-, mid-, and small-cap segments for the emerging markets countries. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

^4. The Barclays Global Aggregate ex-U.S. Dollar Bond Index tracks an international basket of government, corporate, agency, and mortgage-related bonds. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Index Asset Allocation Fund 3

Geopolitical tensions also restrained investor sentiment in international markets. Internal strife in Syria, the pursuit of Islamic militants by the U.S. in Syria and Iraq, and the ongoing confrontation between Russia and Ukraine were among the most notable conflicts. As the year closed, elections in Greece and Japan reflected internal concerns in those countries over government economic policies.

Many investors were encouraged by indications from central banks in Japan, Europe, and China that they would initiate more accommodative monetary policies in response to economic slowdowns, similar to those employed by the Fed in the U.S. Nevertheless, the potential effects of declining energy prices on countries that depend on oil and gas revenues to support their government programs and national economies continue to engender uncertainty.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Many investors were encouraged by indications from central banks in Japan, Europe, and China that they would initiate more accommodative monetary policies in response to economic slowdowns, similar to those employed by the Fed in the U.S.

Notice to shareholders

At a meeting held on February 18-19, 2015, the Board of Trustees of the Fund approved the following changes to the Fund’s principal investment strategy:

n Currently, under normal circumstances, the Fund invests at least 80% of its net assets in equity and fixed income securities designed to replicate the holdings and weightings of the securities comprising the S&P 500 Index and the Barclays 20+ Treasury Index. As of April 1, 2015, the underlying fixed income index that the fixed income sleeve seeks to replicate will change to the Barclays Treasury Index.

n In addition, the potential use of futures will be expanded to allow the Fund’s portfolio managers to make adjustments to the duration of the Fund’s fixed income sleeve.

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

Investment objective

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

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp Acharya, CFA, FRM

Christian L. Chan, CFA

Average annual total returns (%) as of December 31, 2014

								Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		Gross		Net2
Class 2	4-15-1994		18.06		14.00		7.16		1.11		1.00
Index Asset Allocation Composite Index3	–		19.20		14.27		8.36		–		–
Barclays U.S. Treasury 20+ Year Index4	–		27.48		10.69		7.74		–		–
S&P 500 Index5	–		13.69		15.45		7.67		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

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

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

Please see footnotes on page 5.

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

Growth of $10,000 investment⁶ as of December 31, 2014

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

^2.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at the amount shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

^3.  Source: Wells Fargo Funds Management, LLC. The Index Asset Allocation Composite Index is weighted 40% in the Barclays U.S. Treasury 20+ Year Index and 60% in the S&P 500 Index. You cannot invest directly in an index.

^4.  The Barclays U.S. Treasury 20+ Year Index is an unmanaged index composed of securities in the U.S. Treasury Index with maturities of 20 years or greater. You cannot invest directly in an index.

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

^6.  The chart compares the performance of Class 2 shares for the most recent ten years with the Index Asset Allocation Composite Index, the Barclays U.S. Treasury 20+ Year Index, and the S&P 500 Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^7.  The ten largest holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^8.  Neutral target allocation is the target allocation of the Fund as stated in the Fund’s prospectus. Current target allocation is the current allocation of the Fund based on our Tactical Asset Allocation (TAA) Model as of the date specified and is subject to change.

^9.  Equity sector distribution is subject to change and is calculated based on the total long-term equity investments of the Fund.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Index Asset Allocation Composite Index and the Barclays U.S. Treasury 20+ Year Index but outperformed the S&P 500 Index for the 12-month period that ended December 31, 2014.

n For the 12-month period, the S&P 500 Index rose by 13.7% while the Barclays U.S. Treasury 20+ Year Index gained 27.5%.

n The Fund’s tactical asset allocation shifts between stocks and bonds contributed positively to the performance of the Fund during the period as the portfolio management team dynamically adjusted the Fund’s exposure to stocks and bonds in response to varying market conditions. Meanwhile, a higher allocation to cash toward the end of the year detracted slightly from performance.

Despite several turbulent periods, markets trended higher in 2014.

Equity markets rose sharply during the 12-month period, as strengthening economic conditions in the U.S. offset worries about weaker growth and deflationary pressures overseas. Better-than-expected employment data, coupled with exceptionally strong third-quarter gross domestic product growth, boosted sentiment among investors. As of year-end, the unemployment rate hovered near levels not seen since before the 2007–2008 financial crisis, while consumer confidence reached seven-year highs. Weaker economic growth overseas, however, led to several bouts of heightened volatility as fears of a global slowdown mounted. While stronger growth allowed the U.S. Federal Reserve to end its monthly bond-buying program, foreign central banks were forced to maintain accommodative policies in order to stimulate their respective economies. The divergent growth trajectories between the U.S. and its major trading partners led to a sharp rise in the value of the U.S. dollar, which reached multiyear highs compared with other developed markets currencies in 2014. Another factor that led to periods of volatility during the year was the price of oil, which tumbled by almost 50% in the second half of the year. Subdued growth in Europe and Japan, along with plunging oil prices, drove yields on government bonds globally to near-historic lows. Consequently, bond prices rallied sharply during the period.

Ten largest holdings7 (%) as of December 31, 2014
U.S. Treasury Bond, 4.38%, 5-15-2040	2.79
U.S. Treasury Bond, 3.75%, 8-15-2041	2.77
U.S. Treasury Bond, 4.25%, 11-15-2040	2.71
U.S. Treasury Bond, 4.63%, 2-15-2040	2.63
U.S. Treasury Bond, 4.38%, 11-15-2039	2.47
U.S. Treasury Bond, 3.88%, 8-15-2040	2.28
U.S. Treasury Bond, 4.38%, 5-15-2041	2.28
U.S. Treasury Bond, 4.75%, 2-15-2041	2.11
Apple Incorporated	2.09
U.S. Treasury Bond, 3.13%, 11-15-2041	2.03

The tactical shifts between stocks and bonds contributed positively to performance for the 12-month period that ended December 31, 2014.

The Fund’s stock holdings seek to replicate the holdings of the S&P 500 Index, and its bond holdings seek to replicate the holdings of the Barclays U.S. Treasury 20+ Year Index. The Fund’s neutral target allocation is 60% stocks and 40% bonds. As of year-end, the Fund had an effective target allocation of 67% stocks, 26% bonds, and 7% cash. Because of price fluctuations, the Fund’s actual allocation on a particular day may have differed slightly from the target allocation.

The Fund underperformed the Index Asset Allocation Composite Index due to a higher relative allocation to cash

during the fourth quarter. The Fund increased its cash allocation in order to manage potential risks associated with a possible increase in interest rates. Rates did not increase during the quarter. The higher cash allocation caused a drag on the Fund’s performance during the period, as U.S. Treasury bonds with longer maturities rallied. During the period, the Fund employed a Tactical Asset Allocation (TAA) Model, which seeks to enhance returns by shifting the effective allocations based on the relative attractiveness of stocks and bonds. The allocation changes are implemented as an overlay with liquid futures contracts. While the S&P 500 Index futures contracts underperformed the U.S. Treasury bond futures contracts for the year, the adjustments in weightings made by the portfolio management team during the year managed to turn a potential negative into a positive: The net impact of the tactical futures overlay was positive.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Index Asset Allocation Fund 7

Neutral target allocation⁸ as of December 31, 2014

Current target allocation⁸ as of December 31, 2014

Equity sector distribution⁹ as of December 31, 2014

The TAA Model continued to favor stocks relative to bonds at the close of the period.

The TAA Model is a relative-value model, measuring the expected returns on stocks versus the expected returns on bonds. Given historically low yields on U.S. Treasury securities, the model continued to favor stocks at the close of the period. In addition, the portfolio management team may also consider other factors, such as monetary policy, growth prospects, valuations, and market sentiment.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Index Asset Allocation Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	1,083.34	$	5.20		0.99	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.21	$	5.04		0.99	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 9

Security name	Shares		Value
Common Stocks: 58.99%
Consumer Discretionary: 7.15%
Auto Components: 0.24%
BorgWarner Incorporated		677	$	37,201
Delphi Automotive plc		882		64,139
Johnson Controls Incorporated		1,985		95,955
The Goodyear Tire & Rubber Company		818		23,370
				220,665
Automobiles: 0.39%
Ford Motor Company		11,471		177,801
General Motors Company		4,022		140,408
Harley-Davidson Incorporated		638		42,051
				360,260
Distributors: 0.05%
Genuine Parts Company		455		48,489
Diversified Consumer Services: 0.03%
H&R Block Incorporated		820		27,618
Hotels, Restaurants & Leisure: 0.97%
Carnival Corporation		1,342		60,833
Chipotle Mexican Grill Incorporated †		92		62,975
Darden Restaurants Incorporated		395		23,159
Marriott International Incorporated Class A		633		49,393
McDonald’s Corporation		2,900		271,730
Royal Caribbean Cruises Limited		497		40,968
Starbucks Corporation		2,230		182,972
Starwood Hotels & Resorts Worldwide Incorporated		531		43,048
Wyndham Worldwide Corporation		367		31,474
Wynn Resorts Limited		242		36,000
Yum! Brands Incorporated		1,304		94,996
				897,548
Household Durables: 0.25%
D.R. Horton Incorporated		988		24,987
Garmin Limited		359		18,966
Harman International Industries Incorporated		204		21,769
Leggett & Platt Incorporated		410		17,470
Lennar Corporation		531		23,794
Mohawk Industries Incorporated †		184		28,586
Newell Rubbermaid Incorporated		808		30,777
Pulte Homes Incorporated		994		21,331
Whirlpool Corporation		232		44,948
				232,628
Internet & Catalog Retail: 0.69%
Amazon.com Incorporated †		1,131		351,006

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

10 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Internet & Catalog Retail (continued)
Expedia Incorporated		294	$	25,096
Netflix Incorporated †		179		61,148
The Priceline Group Incorporated †		155		176,733
TripAdvisor Incorporated †		332		24,787
				638,770
Leisure Products: 0.05%
Hasbro Incorporated		337		18,532
Mattel Incorporated		1,009		31,224
				49,756
Media: 2.10%
Cablevision Systems Corporation New York Group Class A		652		13,457
CBS Corporation Class B		1,421		78,638
Comcast Corporation Class A		7,678		445,401
DIRECTV Group Incorporated †		1,496		129,703
Discovery Communications Incorporated Class A		442		15,227
Discovery Communications Incorporated Class C †		814		27,448
Gannett Company Incorporated		672		21,457
Interpublic Group of Companies Incorporated		1,247		25,900
News Corporation Class A †		1,486		23,315
Omnicom Group Incorporated		739		57,250
Scripps Networks Interactive Incorporated		302		22,732
The Walt Disney Company		4,649		437,889
Time Warner Cable Incorporated		836		127,122
Time Warner Incorporated		2,499		213,465
Twenty-First Century Fox Incorporated		5,526		212,226
Viacom Incorporated Class B		1,100		82,775
				1,934,005
Multiline Retail: 0.45%
Dollar General Corporation †		904		63,913
Dollar Tree Incorporated †		612		43,073
Family Dollar Stores Incorporated		286		22,654
Kohl’s Corporation		601		36,685
Macy’s Incorporated		1,029		67,657
Nordstrom Incorporated		419		33,264
Target Corporation		1,898		144,077
				411,323
Specialty Retail: 1.42%
AutoNation Incorporated †		222		13,411
AutoZone Incorporated †		95		58,815
Bed Bath & Beyond Incorporated †		552		42,046
Best Buy Company Incorporated		867		33,796
CarMax Incorporated †		641		42,678
GameStop Corporation Class A «		323		10,917
Gap Incorporated		795		33,477
L Brands Incorporated		733		63,441

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 11

Security name	Shares		Value
Specialty Retail (continued)
Lowe’s Companies Incorporated		2,899	$	199,451
O’Reilly Automotive Incorporated †		302		58,171
PetSmart Incorporated		296		24,063
Ross Stores Incorporated		624		58,818
Staples Incorporated		1,906		34,537
The Home Depot Incorporated		3,928		412,322
Tiffany & Company		335		35,798
TJX Companies Incorporated		2,052		140,726
Tractor Supply Company		405		31,922
Urban Outfitters Incorporated †		298		10,469
				1,304,858
Textiles, Apparel & Luxury Goods: 0.51%
Coach Incorporated		821		30,837
Fossil Group Incorporated †		133		14,728
Michael Kors Holdings Limited †		613		46,036
Nike Incorporated Class B		2,080		199,992
PVH Corporation		245		31,402
Ralph Lauren Corporation		180		33,329
Under Armour Incorporated Class A †		496		33,678
VF Corporation		1,029		77,072
				467,074
Consumer Staples: 5.78%
Beverages: 1.26%
Brown-Forman Corporation Class B		466		40,933
Coca-Cola Enterprises Incorporated		662		29,274
Constellation Brands Incorporated Class A †		500		49,085
Dr Pepper Snapple Group Incorporated		578		41,431
Molson Coors Brewing Company		474		35,322
Monster Beverage Corporation †		429		46,482
PepsiCo Incorporated		4,460		421,738
The Coca-Cola Company		11,749		496,043
				1,160,308
Food & Staples Retailing: 1.47%
Costco Wholesale Corporation		1,305		184,984
CVS Health Corporation		3,417		329,091
Safeway Incorporated		687		24,127
Sysco Corporation		1,752		69,537
The Kroger Company		1,463		93,939
Wal-Mart Stores Incorporated		4,707		404,237
Walgreens Boots Alliance Incorporated		2,592		197,510
Whole Foods Market Incorporated		1,071		54,000
				1,357,425
Food Products: 0.95%
Archer Daniels Midland Company		1,918		99,736

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

12 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Food Products (continued)
Campbell Soup Company		534	$	23,496
ConAgra Foods Incorporated		1,266		45,930
General Mills Incorporated		1,799		95,941
Hormel Foods Corporation		400		20,840
JM Smucker Company		303		30,597
Kellogg Company		751		49,145
Keurig Green Mountain Incorporated		362		47,927
Kraft Foods Group Incorporated		1,755		109,968
McCormick & Company Incorporated		385		28,606
Mead Johnson Nutrition Company		601		60,425
Mondelez International Incorporated Class A		5,007		181,879
The Hershey Company		440		45,729
Tyson Foods Incorporated Class A		873		34,999
				875,218
Household Products: 1.17%
Clorox Company		386		40,225
Colgate-Palmolive Company		2,553		176,642
Kimberly-Clark Corporation		1,109		128,134
The Procter & Gamble Company		8,053		733,548
				1,078,549
Personal Products: 0.07%
Avon Products Incorporated		1,295		12,160
Estee Lauder Companies Incorporated Class A		667		50,825
				62,985
Tobacco: 0.86%
Altria Group Incorporated		5,891		290,250
Lorillard Incorporated		1,072		67,472
Philip Morris International		4,630		377,114
Reynolds American Incorporated		918		59,000
				793,836
Energy: 4.98%
Energy Equipment & Services: 0.80%
Baker Hughes Incorporated		1,288		72,218
Cameron International Corporation †		588		29,371
Diamond Offshore Drilling Incorporated «		200		7,342
Ensco plc Class A		698		20,905
FMC Technologies Incorporated †		697		32,647
Halliburton Company		2,526		99,348
Helmerich & Payne Incorporated		323		21,777
Nabors Industries Limited		862		11,189
National Oilwell Varco Incorporated		1,283		84,075
Noble Corporation plc		751		12,444
Schlumberger Limited		3,835		327,547
Transocean Limited «		1,014		18,587
				737,450

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 13

Security name	Shares		Value
Oil, Gas & Consumable Fuels: 4.18%
Anadarko Petroleum Corporation		1,508	$	124,410
Apache Corporation		1,121		70,253
Cabot Oil & Gas Corporation		1,231		36,450
Chesapeake Energy Corporation		1,545		30,236
Chevron Corporation		5,634		632,022
Cimarex Energy Company		260		27,560
ConocoPhillips Company		3,668		253,312
CONSOL Energy Incorporated		686		23,194
Denbury Resources Incorporated		1,050		8,537
Devon Energy Corporation		1,146		70,147
EOG Resources Incorporated		1,633		150,350
EQT Corporation		451		34,141
Exxon Mobil Corporation		12,620		1,166,719
Hess Corporation		757		55,882
Kinder Morgan Incorporated		5,064		214,258
Marathon Oil Corporation		2,011		56,891
Marathon Petroleum Corporation		835		75,367
Murphy Oil Corporation		497		25,108
Newfield Exploration Company †		409		11,092
Noble Energy Incorporated		1,073		50,892
Occidental Petroleum Corporation		2,311		186,290
ONEOK Incorporated		620		30,870
Phillips 66		1,650		118,305
Pioneer Natural Resources Company		443		65,941
QEP Resources Incorporated		494		9,989
Range Resources Corporation		502		26,832
Southwestern Energy Company †		1,052		28,709
Spectra Energy Corporation		1,999		72,564
Tesoro Corporation		376		27,956
The Williams Companies Incorporated		2,004		90,060
Valero Energy Corporation		1,553		76,874
				3,851,211
Financials: 9.82%
Banks: 3.58%
Bank of America Corporation		31,345		560,762
Branch Banking & Trust Corporation		2,146		83,458
Citigroup Incorporated		9,029		488,559
Comerica Incorporated		535		25,059
Fifth Third Bancorp		2,455		50,021
Huntington Bancshares Incorporated		2,427		25,532
JPMorgan Chase & Company		11,141		697,204
KeyCorp		2,582		35,890
M&T Bank Corporation		393		49,369
PNC Financial Services Group Incorporated		1,568		143,049
Regions Financial Corporation		4,102		43,317
SunTrust Banks Incorporated		1,553		65,071
US Bancorp		5,332		239,673
Wells Fargo & Company (l)		14,070		771,317
Zions Bancorporation		604		17,220
				3,295,501

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

14 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Capital Markets: 1.36%
Affiliated Managers Group Incorporated †		165	$	35,020
Ameriprise Financial Incorporated		549		72,605
Bank of New York Mellon Corporation		3,354		136,072
BlackRock Incorporated		380		135,873
Charles Schwab Corporation		3,425		103,401
E*TRADE Financial Corporation †		860		20,859
Franklin Resources Incorporated		1,169		64,728
Goldman Sachs Group Incorporated		1,207		233,953
Invesco Limited		1,284		50,744
Legg Mason Incorporated		299		15,958
Morgan Stanley		4,550		176,540
Northern Trust Corporation		659		44,417
State Street Corporation		1,244		97,654
T. Rowe Price Group Incorporated		773		66,370
				1,254,194
Consumer Finance: 0.54%
American Express Company		2,652		246,742
Capital One Financial Corporation		1,657		136,785
Discover Financial Services		1,351		88,477
Navient Corporation		1,222		26,407
				498,411
Diversified Financial Services: 1.23%
Berkshire Hathaway Incorporated Class B †		5,435		816,065
CME Group Incorporated		943		83,597
IntercontinentalExchange Group Incorporated		336		73,681
Leucadia National Corporation		944		21,164
McGraw Hill Financial Incorporated		809		71,985
Moody’s Corporation		547		52,408
The NASDAQ OMX Group Incorporated		349		16,738
				1,135,638
Insurance: 1.65%
ACE Limited		988		113,501
AFLAC Incorporated		1,341		81,922
Allstate Corporation		1,250		87,813
American International Group Incorporated		4,172		233,674
Aon plc		850		80,606
Assurant Incorporated		209		14,302
Chubb Corporation		703		72,739
Cincinnati Financial Corporation		438		22,702
Genworth Financial Incorporated †		1,479		12,572
Lincoln National Corporation		774		44,637
Loews Corporation		892		37,482
Marsh & McLennan Companies Incorporated		1,611		92,214
MetLife Incorporated		3,385		183,095
Principal Financial Group Incorporated		814		42,279
Prudential Financial Incorporated		1,364		123,387

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 15

Security name	Shares		Value
Insurance (continued)
The Hartford Financial Services Group Incorporated		1,285	$	53,572
The Progressive Corporation		1,594		43,022
The Travelers Companies Incorporated		987		104,474
Torchmark Corporation		383		20,747
UnumProvident Corporation		751		26,195
XL Group plc		769		26,431
				1,517,366
Real Estate Management & Development: 0.03%
CBRE Group Incorporated †		833		28,530
REITs: 1.40%
American Tower Corporation		1,181		116,742
Apartment Investment & Management Company Class A		435		16,160
AvalonBay Communities Incorporated		393		64,212
Boston Properties Incorporated		456		58,683
Crown Castle International Corporation		994		78,228
Equity Residential		1,079		77,515
Essex Property Trust Incorporated		191		39,461
General Growth Properties Incorporated		1,870		52,603
HCP Incorporated		1,368		60,233
Health Care REIT Incorporated		976		73,854
Host Hotels & Resorts Incorporated		2,257		53,649
Iron Mountain Incorporated		555		21,456
Kimco Realty Corporation		1,226		30,822
Plum Creek Timber Company		524		22,422
Prologis Incorporated		1,489		64,072
Public Storage Incorporated		432		79,855
Simon Property Group Incorporated		926		168,634
The Macerich Company		419		34,949
Ventas Incorporated		877		62,881
Vornado Realty Trust		520		61,209
Weyerhaeuser Company		1,562		56,060
				1,293,700
Thrifts & Mortgage Finance: 0.03%
Hudson City Bancorp Incorporated		1,433		14,502
People’s United Financial Incorporated		917		13,920
				28,422
Health Care: 8.39%
Biotechnology: 1.71%
Alexion Pharmaceuticals Incorporated †		590		109,168
Amgen Incorporated		2,267		361,110
Biogen Idec Incorporated †		704		238,973
Celgene Corporation †		2,380		266,227
Gilead Sciences Incorporated †		4,496		423,793
Regeneron Pharmaceuticals Incorporated †		221		90,665
Vertex Pharmaceuticals Incorporated †		717		85,180
				1,575,116

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

16 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Health Care Equipment & Supplies: 1.32%
Abbott Laboratories		4,488	$	202,050
Baxter International Incorporated		1,615		118,363
Becton Dickinson & Company		571		79,460
Boston Scientific Corporation †		3,953		52,377
C.R. Bard Incorporated		223		37,156
CareFusion Corporation †		607		36,019
Covidien plc		1,349		137,976
DENTSPLY International Incorporated		421		22,427
Edwards Lifesciences Corporation †		319		40,634
Intuitive Surgical Incorporated †		107		56,597
Medtronic Incorporated		2,933		211,763
St. Jude Medical Incorporated		852		55,406
Stryker Corporation		891		84,048
Varian Medical Systems Incorporated †		298		25,780
Zimmer Holdings Incorporated		504		57,164
				1,217,220
Health Care Providers & Services: 1.35%
Aetna Incorporated		1,047		93,005
AmerisourceBergen Corporation		618		55,719
Anthem Incorporated		804		101,039
Cardinal Health Incorporated		986		79,600
Cigna Corporation		779		80,167
DaVita HealthCare Partners Incorporated †		512		38,779
Express Scripts Holding Company †		2,187		185,173
Humana Incorporated		456		65,495
Laboratory Corporation of America Holdings †		252		27,191
McKesson Corporation		691		143,438
Patterson Companies Incorporated		255		12,266
Quest Diagnostics Incorporated		431		28,903
Tenet Healthcare Corporation †		293		14,846
UnitedHealth Group Incorporated		2,860		289,117
Universal Health Services Incorporated Class B		271		30,151
				1,244,889
Health Care Technology: 0.07%
Cerner Corporation †		905		58,517
Life Sciences Tools & Services: 0.25%
Agilent Technologies Incorporated		994		40,694
PerkinElmer Incorporated		336		14,693
Thermo Fisher Scientific Incorporated		1,192		149,346
Waters Corporation †		248		27,955
				232,688
Pharmaceuticals: 3.69%
AbbVie Incorporated		4,748		310,709
Actavis plc †		790		203,354
Allergan Incorporated		887		188,567

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 17

Security name	Shares		Value
Pharmaceuticals (continued)
Bristol-Myers Squibb Company		4,944	$	291,844
Eli Lilly & Company		2,919		201,382
Hospira Incorporated †		504		30,870
Johnson & Johnson		8,342		872,323
Mallinckrodt plc †		346		34,264
Merck & Company Incorporated		8,497		482,545
Mylan Laboratories Incorporated †		1,115		62,853
Perrigo Company plc		419		70,040
Pfizer Incorporated		18,779		584,966
Zoetis Incorporated		1,494		64,287
				3,398,004
Industrials: 6.14%
Aerospace & Defense: 1.58%
General Dynamics Corporation		938		129,088
Honeywell International Incorporated		2,333		233,113
L-3 Communications Holdings Incorporated		254		32,057
Lockheed Martin Corporation		800		154,056
Northrop Grumman Corporation		601		88,581
Precision Castparts Corporation		425		102,374
Raytheon Company		919		99,408
Rockwell Collins Incorporated		396		33,454
Textron Incorporated		823		34,657
The Boeing Company		1,975		256,711
United Technologies Corporation		2,527		290,605
				1,454,104
Air Freight & Logistics: 0.46%
C.H. Robinson Worldwide Incorporated		435		32,577
Expeditors International of Washington Incorporated		575		25,651
FedEx Corporation		785		136,323
United Parcel Service Incorporated Class B		2,077		230,900
				425,451
Airlines: 0.23%
Delta Air Lines Incorporated		2,495		122,729
Southwest Airlines Company		2,022		85,571
				208,300
Building Products: 0.05%
Allegion plc		285		15,806
Masco Corporation		1,061		26,737
				42,543
Commercial Services & Supplies: 0.26%
Cintas Corporation		289		22,669
Pitney Bowes Incorporated		598		14,573
Republic Services Incorporated		752		30,268
Stericycle Incorporated †		253		33,163
The ADT Corporation		519		18,803

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

18 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Commercial Services & Supplies (continued)
Tyco International plc		1,247	$	54,693
Waste Management Incorporated		1,269		65,125
				239,294
Construction & Engineering: 0.07%
Fluor Corporation		465		28,193
Jacobs Engineering Group Incorporated †		389		17,384
Quanta Services Incorporated †		648		18,397
				63,974
Electrical Equipment: 0.33%
AMETEK Incorporated		733		38,578
Eaton Corporation plc		1,414		96,095
Emerson Electric Company		2,067		127,596
Rockwell Automation Incorporated		404		44,925
				307,194
Industrial Conglomerates: 1.38%
3M Company		1,909		313,687
Danaher Corporation		1,822		156,164
General Electric Company		29,932		756,382
Roper Industries Incorporated		299		46,749
				1,272,982
Machinery: 0.91%
Caterpillar Incorporated		1,804		165,120
Cummins Incorporated		506		72,950
Deere & Company		1,068		94,486
Dover Corporation		492		35,286
Flowserve Corporation		406		24,291
Illinois Tool Works Incorporated		1,071		101,424
Ingersoll-Rand plc		791		50,141
Joy Global Incorporated		292		13,584
Paccar Incorporated		1,054		71,683
Pall Corporation		317		32,084
Parker Hannifin Corporation		443		57,125
Pentair plc		556		36,930
Snap-on Incorporated		172		23,519
Stanley Black & Decker Incorporated		466		44,773
Xylem Incorporated		541		20,596
				843,992
Professional Services: 0.12%
Dun & Bradstreet Corporation		106		12,822
Equifax Incorporated		359		29,032
Nielsen Holdings NV		965		43,164
Robert Half International Incorporated		405		23,644
				108,662
Road & Rail: 0.63%
CSX Corporation		2,967		107,494

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 19

Security name	Shares		Value
Road & Rail (continued)
Kansas City Southern		329	$	40,148
Norfolk Southern Corporation		922		101,060
Ryder System Incorporated		157		14,577
Union Pacific Corporation		2,650		315,695
				578,974
Trading Companies & Distributors: 0.12%
Fastenal Company		813		38,666
United Rentals Incorporated †		297		30,297
W.W. Grainger Incorporated		180		45,880
				114,843
Information Technology: 11.60%
Communications Equipment: 0.99%
Cisco Systems Incorporated		15,242		423,956
F5 Networks Incorporated †		220		28,702
Harris Corporation		312		22,408
Juniper Networks Incorporated		1,147		25,601
Motorola Solutions Incorporated		630		42,260
QUALCOMM Incorporated		4,955		368,305
				911,232
Electronic Equipment, Instruments & Components: 0.25%
Amphenol Corporation Class A		922		49,613
Corning Incorporated		3,820		87,593
FLIR Systems Incorporated		420		13,570
TE Connectivity Limited		1,211		76,596
				227,372
Internet Software & Services: 1.91%
Akamai Technologies Incorporated †		530		33,369
eBay Incorporated †		3,369		189,068
Facebook Incorporated Class A †		6,232		486,221
Google Incorporated Class A †		849		450,530
Google Incorporated Class C †		848		446,387
VeriSign Incorporated †		325		18,525
Yahoo! Incorporated †		2,626		132,639
				1,756,739
IT Services: 1.95%
Accenture plc		1,870		167,010
Alliance Data Systems Corporation †		190		54,350
Automatic Data Processing Incorporated		1,436		119,719
Cognizant Technology Solutions Corporation Class A †		1,815		95,578
Computer Sciences Corporation		418		26,355
Fidelity National Information Services Incorporated		845		52,559
Fiserv Incorporated †		727		51,595
International Business Machines Corporation		2,743		440,087
MasterCard Incorporated Class A		2,920		251,587
Paychex Incorporated		973		44,923

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

20 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
IT Services (continued)
Teradata Corporation †		456	$	19,918
The Western Union Company		1,557		27,886
Total System Services Incorporated		492		16,708
Visa Incorporated Class A		1,455		381,501
Xerox Corporation		3,198		44,324
				1,794,100
Semiconductors & Semiconductor Equipment: 1.44%
Altera Corporation		908		33,542
Analog Devices Incorporated		927		51,467
Applied Materials Incorporated		3,631		90,485
Avago Technologies Limited		754		75,845
Broadcom Corporation Class A		1,606		69,588
First Solar Incorporated †		224		9,989
Intel Corporation		14,411		522,975
KLA-Tencor Corporation		490		34,457
Lam Research Corporation		473		37,528
Linear Technology Corporation		711		32,422
Microchip Technology Incorporated «		598		26,976
Micron Technology Incorporated †		3,199		111,997
NVIDIA Corporation		1,538		30,837
Texas Instruments Incorporated		3,148		168,308
Xilinx Incorporated		788		34,113
				1,330,529
Software: 2.27%
Adobe Systems Incorporated †		1,411		102,580
Autodesk Incorporated †		677		40,661
CA Incorporated		954		29,049
Citrix Systems Incorporated †		479		30,560
Electronic Arts Incorporated †		926		43,536
Intuit Incorporated		851		78,454
Microsoft Corporation		24,568		1,141,184
Oracle Corporation		9,641		433,556
Red Hat Incorporated †		559		38,649
Salesforce.com Incorporated †		1,749		103,733
Symantec Corporation		2,057		52,772
				2,094,734
Technology Hardware, Storage & Peripherals: 2.79%
Apple Incorporated		17,480		1,929,442
EMC Corporation		6,064		180,343
Hewlett-Packard Company		5,562		223,203
NetApp Incorporated		928		38,466
SanDisk Corporation		657		64,373
Seagate Technology plc		975		64,838
Western Digital Corporation		650		71,955
				2,572,620

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 21

Security name	Shares		Value
Materials: 1.87%
Chemicals: 1.41%
Air Products & Chemicals Incorporated		572	$	82,500
Airgas Incorporated		200		23,036
CF Industries Holdings Incorporated		147		40,063
Dow Chemical Company		3,301		150,559
E.I. du Pont de Nemours & Company		2,700		199,638
Eastman Chemical Company		442		33,530
Ecolab Incorporated		805		84,139
FMC Corporation		397		22,641
International Flavors & Fragrances Incorporated		242		24,529
LyondellBasell Industries NV Class A		1,238		98,285
Monsanto Company		1,442		172,276
Mosaic Company		940		42,911
PPG Industries Incorporated		409		94,540
Praxair Incorporated		868		112,458
Sigma-Aldrich Corporation		355		48,731
The Sherwin-Williams Company		243		63,919
				1,293,755
Construction Materials: 0.05%
Martin Marietta Materials Incorporated		185		20,409
Vulcan Materials Company		392		25,766
				46,175
Containers & Packaging: 0.11%
Avery Dennison Corporation		272		14,111
Ball Corporation		408		27,813
MeadWestvaco Corporation		496		22,017
Owens-Illinois Incorporated †		491		13,252
Sealed Air Corporation		628		26,646
				103,839
Metals & Mining: 0.23%
Alcoa Incorporated		3,514		55,486
Allegheny Technologies Incorporated		324		11,265
Freeport-McMoRan Copper & Gold Incorporated Class B		3,097		72,346
Newmont Mining Corporation		1,486		28,085
Nucor Corporation		950		46,598
				213,780
Paper & Forest Products: 0.07%
International Paper Company		1,262		67,618
Telecommunication Services: 1.35%
Diversified Telecommunication Services: 1.35%
AT&T Incorporated		15,460		519,301
CenturyLink Incorporated		1,701		67,326
Frontier Communications Corporation «		2,987		19,923

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

22 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Diversified Telecommunication Services (continued)
Level 3 Communications Incorporated †		831	$	41,035
Verizon Communications Incorporated		12,368		578,575
Windstream Holdings Incorporated		1,796		14,799
				1,240,959
Utilities: 1.91%
Electric Utilities: 1.09%
American Electric Power Company Incorporated		1,458		88,530
Duke Energy Corporation		2,108		176,102
Edison International		971		63,581
Entergy Corporation		537		46,977
Exelon Corporation		2,562		94,999
FirstEnergy Corporation		1,254		48,893
NextEra Energy Incorporated		1,301		138,283
Northeast Utilities		944		50,523
Pepco Holdings Incorporated		751		20,224
Pinnacle West Capital Corporation		329		22,474
PPL Corporation		1,982		72,006
The Southern Company		2,682		131,713
Xcel Energy Incorporated		1,506		54,096
				1,008,401
Gas Utilities: 0.02%
AGL Resources Incorporated		356		19,406
Independent Power & Renewable Electricity Producers: 0.06%
AES Corporation		1,954		26,907
NRG Energy Incorporated		1,007		27,139
				54,046
Multi-Utilities: 0.74%
Ameren Corporation		723		33,352
CenterPoint Energy Incorporated		1,281		30,014
CMS Energy Corporation		819		28,460
Consolidated Edison Incorporated		873		57,627
Dominion Resources Incorporated		1,740		133,806
DTE Energy Company		527		45,517
Integrys Energy Group Incorporated		238		18,528
NiSource Incorporated		940		39,875
PG&E Corporation		1,415		75,335
Public Service Enterprise Group Incorporated		1,507		62,405
SCANA Corporation		425		25,670
Sempra Energy		689		76,727
TECO Energy Incorporated		699		14,323
Wisconsin Energy Corporation «		671		35,377
				677,016
Total Common Stocks (Cost $31,174,689)				54,360,806

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 23

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities: 32.05%
U.S. Treasury Bond		2.75	%		8-15-2042	$	979,000	$	979,305
U.S. Treasury Bond		3.00			5-15-2042		862,000		906,582
U.S. Treasury Bond		3.13			11-15-2041		1,729,000		1,867,859
U.S. Treasury Bond		3.13			2-15-2042		1,025,000		1,104,118
U.S. Treasury Bond		3.50			2-15-2039		726,000		834,446
U.S. Treasury Bond		3.75			8-15-2041		2,115,000		2,551,219
U.S. Treasury Bond		3.88			8-15-2040		1,718,000		2,099,181
U.S. Treasury Bond		4.25			5-15-2039		681,000		876,149
U.S. Treasury Bond		4.25			11-15-2040		1,930,000		2,500,255
U.S. Treasury Bond		4.38			2-15-2038		428,000		560,546
U.S. Treasury Bond		4.38			11-15-2039		1,734,000		2,274,249
U.S. Treasury Bond		4.38			5-15-2040		1,951,000		2,566,784
U.S. Treasury Bond		4.38			5-15-2041		1,580,000		2,096,957
U.S. Treasury Bond		4.50			2-15-2036		836,000		1,116,060
U.S. Treasury Bond		4.50			5-15-2038		472,000		629,383
U.S. Treasury Bond		4.50			8-15-2039		868,000		1,157,560
U.S. Treasury Bond		4.63			2-15-2040		1,785,000		2,426,206
U.S. Treasury Bond		4.75			2-15-2037		319,000		440,519
U.S. Treasury Bond		4.75			2-15-2041		1,390,000		1,943,394
U.S. Treasury Bond		5.00			5-15-2037		421,000		601,109
Total U.S. Treasury Securities (Cost $23,985,145)									29,531,881
Short-Term Investments: 10.03%
	Yield					Shares
Investment Companies: 8.48%
Securities Lending Cash Investments LLC (l)(u)(r)		0.14					109,300		109,300
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08					7,702,488		7,702,488
									7,811,788
						Principal
U.S. Treasury Securities: 1.55%
U.S. Treasury Bill #(z)		0.03			1-8-2015	$	530,000		529,997
U.S. Treasury Bill #(z)		0.12			7-2-2015		900,000		899,457
									1,429,454
Total Short-Term Investments (Cost $9,241,287)									9,241,242

Total investments in securities (Cost $64,401,121)*	101.07	%		93,133,929
Other assets and liabilities, net	(1.07	)		(987,784	)
Total net assets	100.00	%	$	92,146,145

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

24 Wells Fargo Advantage VT Index Asset Allocation Fund Portfolio of investments—December 31, 2014

† Non-income-earning security

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

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

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

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

* Cost for federal income tax purposes is $66,492,297 and unrealized gains (losses) consists of:

Gross unrealized gains	$	29,463,545
Gross unrealized losses		(2,821,913	)
Net unrealized gains	$	26,641,632

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

Statement of assets and liabilities—December 31, 2014 Wells Fargo Advantage VT Index Asset Allocation Fund 25

Assets
Investments
In unaffiliated securities (including $105,016 of securities loaned), at value (cost $56,181,912)	$	84,550,824
In affiliated securities, at value (cost $8,219,209)		8,583,105
Total investments, at value (cost $64,401,121)		93,133,929
Cash		467
Receivable for dividends and interest		320,561
Receivable for securities lending income		84
Prepaid expenses and other assets		12,823
Total assets		93,467,864
Liabilities
Payable for investments purchased		899,502
Payable for Fund shares redeemed		92,842
Payable upon receipt of securities loaned		109,300
Payable for daily variation margin on open futures contracts		99,488
Advisory fee payable		44,255
Distribution fee payable		20,116
Administration fee payable		10,459
Accrued expenses and other liabilities		45,757
Total liabilities		1,321,719
Total net assets	$	92,146,145
NET ASSETS CONSIST OF
Paid-in capital	$	72,797,553
Undistributed net investment income		99,191
Accumulated net realized losses on investments		(9,287,630	)
Net unrealized gains on investments		28,537,031
Total net assets	$	92,146,145
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	92,146,145
Shares outstanding – Class 21		5,000,206
Net asset value per share – Class 2		$18.43

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

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

26 Wells Fargo Advantage VT Index Asset Allocation Fund Statement of operations—year ended December 31, 2014

Investment income
Interest	$	1,185,740
Dividends (net of foreign withholding taxes of $153)		1,073,551
Income from affiliated securities		20,610
Securities lending income, net		1,362
Total investment income		2,281,263
Expenses
Advisory fee		487,831
Administration fee		115,306
Distribution fee
Class 2		221,741
Custody and accounting fees		23,062
Professional fees		34,314
Shareholder report expenses		2,853
Trustees’ fees and expenses		6,233
Other fees and expenses		12,931
Total expenses		904,271
Less: Fee waivers and/or expense reimbursements		(22,780	)
Net expenses		881,491
Net investment income		1,399,772
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		4,492,631
Affiliated securities		(36,791	)
Futures transactions		1,069,745
Net realized gains on investments		5,525,585
Net change in unrealized gains (losses) on:
Unaffiliated securities		8,079,337
Affiliated securities		174,217
Futures transactions		(460,972	)
Net change in unrealized gains (losses) on investments		7,792,582
Net realized and unrealized gains (losses) on investments		13,318,167
Net increase in net assets resulting from operations	$	14,717,939

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

Statement of changes in net assets Wells Fargo Advantage VT Index Asset Allocation Fund 27

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment income				$	1,399,772					$	1,360,460
Net realized gains on investments					5,525,585						10,518,055
Net change in unrealized gains (losses) on investments					7,792,582						3,710,196
Net increase in net assets resulting from operations					14,717,939						15,588,711
Distributions to shareholders from
Net investment income – Class 2					(1,351,046	)					(1,413,380	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		202,482			3,451,969			169,662			2,539,040
Reinvestment of distributions – Class 2		78,919			1,351,046			95,451			1,413,380
Payment for shares redeemed – Class 2		(764,955	)		(12,958,898	)		(1,077,142	)		(15,983,942	)
Net decrease in net assets resulting from capital share transactions					(8,155,883	)					(12,031,522	)
Total increase in net assets					5,211,010						2,143,809
Net assets
Beginning of period					86,935,135						84,791,326
End of period				$	92,146,145					$	86,935,135
Undistributed net investment income				$	99,191					$	86,778

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

28 Wells Fargo Advantage VT Index Asset Allocation Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$15.85			$13.47			$12.09			$11.72			$10.53
Net investment income		0.27			0.24			0.21			0.21			0.20
Net realized and unrealized gains (losses) on investments		2.57			2.39			1.36			0.54			1.18
Total from investment operations		2.84			2.63			1.57			0.75			1.38
Distributions to shareholders from
Net investment income		(0.26	)		(0.25	)		(0.19	)		(0.38	)		(0.19	)
Net asset value, end of period		$18.43			$15.85			$13.47			$12.09			$11.72
Total return		18.06	%		19.63	%		13.03	%		6.48	%		13.29	%
Ratios to average net assets (annualized)
Gross expenses		1.02	%		1.11	%		1.13	%		1.06	%		1.10	%
Net expenses		0.99	%		1.00	%		1.00	%		0.99	%		1.00	%
Net investment income		1.58	%		1.57	%		1.58	%		1.70	%		1.76	%
Supplemental data
Portfolio turnover rate		3	%		11	%		8	%		17	%		25	%
Net assets, end of period (000s omitted)		$92,146			$86,935			$84,791			$89,402			$102,946

^1.  After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

Notes to financial statements Wells Fargo Advantage VT Index Asset Allocation Fund 29

1. ORGANIZATION

Wells Fargo Variable Trust Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Index Asset Allocation Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities and futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer.

Short-term securities, with maturities of 60 days or less at time of purchase, generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each

30 Wells Fargo Advantage VT Index Asset Allocation Fund Notes to financial statements

business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

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

Futures contracts

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

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

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

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

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent

Notes to financial statements Wells Fargo Advantage VT Index Asset Allocation Fund 31

differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At December 31, 2014, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$(36,313)	$36,313

As of December 31, 2014, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $5,072,286 with $1,347,719 expiring in 2016; and $3,724,567 expiring in 2017.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	6,592,994	$	0	$	0	$	6,592,994
Consumer staples		5,328,321		0		0		5,328,321
Energy		4,588,661		0		0		4,588,661
Financials		9,051,762		0		0		9,051,762
Health care		7,726,434		0		0		7,726,434
Industrials		5,660,313		0		0		5,660,313
Information technology		10,687,326		0		0		10,687,326
Materials		1,725,167		0		0		1,725,167
Telecommunication services		1,240,959		0		0		1,240,959
Utilities		1,758,869		0		0		1,758,869
U.S. Treasury securities		29,531,881		0		0		29,531,881
Short-term investments
Investment companies		7,702,488		109,300		0		7,811,788
U.S. Treasury securities		899,458		529,996		0		1,429,454
Total assets	$	92,494,633	$	639,296	$	0	$	93,133,929
Liabilities
Futures contracts	$	99,488	$	0	$	0	$	99,488
Total liabilities	$	99,488	$	0	$	0	$	99,488

32 Wells Fargo Advantage VT Index Asset Allocation Fund Notes to financial statements

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

Transfers in and transfers out are recognized at the end of the reporting period. At December 31, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.55% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fee

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 from the Fund an annual administration fee starting at 0.13% and declining to 0.11% as the average daily net assets of the Fund increase.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2014 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$367,656	$2,561,073	$9,558,377	$7,177,357

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2014, the Fund entered into futures contracts to gain market exposure to certain asset classes consistent with an active asset allocation strategy.

At December 31, 2014, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty		Contracts		Type	Contract value at December 31, 2014		Unrealized gains (losses)
3-19-2015		Goldman Sachs		14 Long	S&P 500 Index	$	7,183,400	$	122,875
3-20-2015		Goldman Sachs		42 Short	U.S. Treasury Bonds		6,937,875		(318,652	)

Notes to financial statements Wells Fargo Advantage VT Index Asset Allocation Fund 33

The Fund had an average notional amount of $9,488,368 and $8,333,416 in long and short futures contracts, respectively, during the year ended December 31, 2014.

A summary of derivative instruments by primary risk exposure is outlined in the following tables.

The fair value of derivative instruments as of December 31, 2014 was as follows for the Fund:

	Liability derivatives
	Statement of Assets and Liabilities location	Fair value
Interest rate contracts	Payable for daily variation margin on open futures contracts	$	14,438	*
Equity contracts	Payable for daily variation margin on open futures contracts		85,050	*
		$	99,488

* Only the current day’s variation margin as of December 31, 2014 is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2014 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains (losses) on derivatives
Interest rate contracts	$	(799,357	)	$	(417,977	)
Equity contracts		1,869,102			(42,995	)
	$	1,069,745		$	(460,972	)

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

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral pledged1			Net amount of liabilities
Futures – variation margin	Goldman Sachs	$99,488	$	0	$	(99,488	)	$	0

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

7. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement, whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $133 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

34 Wells Fargo Advantage VT Index Asset Allocation Fund Notes to financial statements

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $1,351,046 and $1,413,380 of ordinary income for the years ended December 31, 2014 and December 31, 2013, respectively.

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$99,191	$24,321,687	$(5,072,286)

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Advantage VT Index Asset Allocation Fund 35

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Index Asset Allocation Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Index Asset Allocation Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

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

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 71.32% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2014.

For the fiscal year ended December 31, 2014, 52.45% of the dividends distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Advantage VT Index Asset Allocation Fund 37

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management , LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2. The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

List of abbreviations Wells Fargo Advantage VT Index Asset Allocation Fund 39

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230412 02-15

AVT2/AR148 12-14

Wells Fargo Advantage

VT International Equity Fund

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	17
Report of independent registered public accounting firm	24
Other information	25
List of abbreviations	28

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT International Equity Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Throughout the reporting period, the Federal Open Market Committee (FOMC), which is the Fed’s monetary policymaking body, kept its key interest rate effectively at zero.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT International Equity Fund for the 12-month period that ended December 31, 2014. The period was marked by heightened geopolitical uncertainty as the U.S. and Europe confronted Russia over Ukraine and later as Islamic militants (formerly known as ISIS) gained territory in Syria and Iraq. Toward the end of the reporting period, market volatility increased, in part, because of weaker economic numbers in Europe and China and rising expectations that the U.S. Federal Reserve (Fed) would begin raising interest rates in mid-2015. The MSCI EAFE Index (Net)¹, a proxy for international developed markets, ended the period with a 4.90% loss, while the MSCI Emerging Markets Index (Net)², a proxy for global emerging markets, ended with a 2.19% loss.

Major central banks continued to provide liquidity to the markets.

Throughout the reporting period, the Federal Open Market Committee (FOMC), which is the Fed’s monetary policymaking body, kept its key interest rate effectively at zero. This tended to support global markets given the Fed’s role in providing investor liquidity. In January 2014, the FOMC began to reduce (or taper) its bond-buying program by $10 billion per month and brought the program to an end in late October 2014. Although the FOMC kept its key interest rate at zero, its guidance led investors to expect an interest-rate hike sometime in 2015.

In June 2014, the European Central Bank (ECB) announced a variety of measures aimed at encouraging lending, including making funds available to banks at low interest rates and imposing a negative interest rate on bank deposits held at the central bank. In September 2014, the ECB cut its key rate to a historic low of 0.05% and increased its negative interest rate. In Japan, the Bank of Japan (BoJ) maintained an aggressive monetary program aimed at combating deflation by doubling the bank’s asset base over two years; on the last day of the reporting period, the BoJ surprised observers by increasing its asset purchases.

The backdrop of a challenging geopolitical situation and slowing global growth caused significant volatility.

Geopolitical events were major negatives throughout the reporting period. The ongoing standoff between the West (the U.S., Europe, and their allies) and Russia over Ukraine began in early 2014 and continued throughout the reporting period. As of December 2014, it seemed unlikely that the situation would result in a war between Russia and the West, though a civil war raged in Ukraine. However, economic sanctions from the West against Russia and from Russia against the West contributed to slower growth in Europe, a key Russian trading partner. In the Middle East, the advance of Islamic militants in Syria and Iraq led to airstrikes by the U.S. and its allies.

Market volatility increased toward the end of the reporting period as renewed fears of slowing global growth took hold and investors began to price in expectations that the FOMC was finally looking to raise short-term interest rates.

^1.  The Morgan Stanley Capital International Europe, Australasia, and Far East (MSCI EAFE) Index (Net) is an unmanaged group of securities widely regarded by investors to be representations of the stock markets of Europe, Australasia, and the Far East. Calculations for EAFE use net dividends, which reflect the deduction of withholding taxes. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

^2.  The Morgan Stanley Capital International (MSCI) Emerging Markets Index (Net) is a free float-adjusted market-capitalization-weighted index designed to measure the equity market performance in the global emerging markets. The index is currently composed of 21 emerging markets country indexes. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT International Equity Fund 3

Economic news out of Europe trended lower for most of 2014. Slower European growth combined with expectations of higher U.S. interest rates to send the euro lower during the fourth quarter, pressuring European returns for U.S. dollar—denominated investors. Returns in Asia were dampened by a sluggish Japanese economy as well as a late-period decline in the yen. Among countries in the MSCI EAFE, major markets such as Japan, Germany, and France ended the period with losses. Among emerging markets, hopes for an economic soft landing in China faded toward the end of the period as the country produced lower-than-expected economic results. Russia also posted sharply negative returns as a result of its standoff with the West.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Slower European growth combined with expectations of higher U.S. interest rates to send the euro lower during the quarter, pressuring European returns for U.S. dollar—denominated investors.

4 Wells Fargo Advantage VT International Equity Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Jeffrey Everett, CFA Dale A. Winner, CFA

Average annual total returns¹ (%) as of December 31, 2014

									Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		Gross		Net3
Class 1	8-17-1998		(5.30	)		5.63		3.90		0.96		0.70
Class 2	7-31-2002		(5.35	)		5.43		3.66		1.21		0.95
MSCI ACWI ex USA (Net)4	–		(3.87	)		4.43		5.13		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

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

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

Please see footnotes on page 5.

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

Growth of $10,000 investment⁵ as of December 31, 2014

^1.  Historical performance shown for all classes of the Fund prior to July 19, 2010, is based on the performance of the Fund’s predecessor, Evergreen VA International Equity Fund. Effective July 16, 2010, the Fund changed its name from Wells Fargo Advantage VT International Core Fund to Wells Fargo Advantage VT International Equity Fund.

^2.  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

^3.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.69% for Class 1 and 0.94% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

^4.  The Morgan Stanley Capital International All Country World Index ex USA (MSCI ACWI ex USA (Net)) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets excluding the United States. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

^5.  The chart compares the performance of Class 2 shares for the most recent ten years with the MSCI ACWI ex USA (Net). The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^6.  The ten largest equity holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^7.  Percentages are subject to change and are calculated based on the total long-term investments of the Fund.

* This security was not held in the Fund at the end of the reporting period.

6 Wells Fargo Advantage VT International Equity Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the MSCI ACWI ex USA Index (Net), for the 12-month period that ended December 31, 2014.

n The Fund remains overweight Japanese and Hong Kong companies, as well as European companies that the management team believes are undervalued.

n Investments in the consumer discretionary and industrials sectors detracted from relative results for the one-year period. Several holdings in the financials sector contributed to relative returns.

Despite geopolitical troubles that included conflict in Ukraine and Iraq, as well as increased market volatility toward the end of 2014, the investment team continued to employ our time-tested approach to fundamental research, searching for nonconsensus values around the globe, maintaining a focus on overall investment risk management, and rebalancing infrequently, doing so only to capture unusual stock market or company-specific price movements for investor’s potential benefit.

Ten largest equity holdings6 (%) as of December 31, 2014
China Everbright Limited	4.03
Mitsubishi UFJ Financial Group Incorporated	3.16
Man Group plc	3.16
Daiwa House Industry Company Limited	2.95
Zurich Financial Services AG	2.95
Hitachi Limited	2.90
Siemens AG	2.79
Akzo Nobel NV	2.73
Wolseley plc	2.72
Prysmian SpA	2.68

In a volatile year, both stock selection and sector allocations detracted from relative results.

During the reporting period, disappointing results came primarily from holdings in the consumer discretionary and industrials sectors. Rheinmetall AG (a cyclically sensitive German auto parts maker), Debenhams plc (a UK-based department store retailer), and Hengdeli Holdings Limited (a Hong Kong jewelry retailer) all weighed on performance for different reasons, and only Rheinmetall remained in the portfolio at year-end. Underperformers in other sectors included consumer staple Biostime International Holdings Limited (a structurally attractive China-based infant formula company), Russian telecommunications provider Mobile TeleSystems OJSC*, and financials

position Anima Holding SpA (an Italian asset manager that was added during recent market stress).

Overall, financials sector holdings contributed positively to performance, with Man Group plc the top contributor. At the time of investment, we believed that Man was an undervalued asset management franchise with the potential to benefit from improved fund performance, increasing asset inflows, strong cost controls, and balance sheet restructuring. So far, our investment thesis has been realized. China Everbright Limited was another notable contributor as investors began to appreciate the earnings potential from its asset management business; its sale of noncore assets; and the introduction of Shanghai-Hong Kong Connect, which opened up local Chinese stocks to foreign investors. Contributors in others sectors included consumer staple Marine Harvest ASA (an undervalued salmon producer with the leading global market position), financials firm Intesa Sanpaolo SpA (an Italian franchise bank purchased at a fraction of book value), and SK Telecom Company Limited (a South Korean wireless telecommunications operator).

On a country basis, negative attribution came primarily from the Fund’s holdings in Japan and Germany, while stocks domiciled in Hong Kong and the U.K. contributed.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT International Equity Fund 7

Sector distribution⁷ as of December 31, 2014

We continue to search for undervalued opportunities in Europe and Japan.

Europe continued to experience negative pressures on regional economic growth. Against that backdrop, we found a number of highly attractive and undervalued stock ideas. We believe that many of the companies that we favor have the ability to improve their own prospects by enhancing operations or by investing in higher-yielding franchises; we believe that our bottom-up research model works well in analyzing the upside and downside of these opportunities. One notable holding

that arose from such research is our top European position, Siemens AG, a large German industrial conglomerate that is engaged in a firm-wide restructuring and is targeting 12% margins over the next several years.

Country allocation⁷ as of December 31, 2014

We believe that Asia still represents an outstanding investment opportunity, combining low valuations with increased corporate governance and a renewed emphasis on profitability. In Japan, recent research that included on-the-ground trips and ongoing developments in government policy have steered us in the direction of companies with strong and improving profitability such as Toyota Motor Corporation. The emergence of a two-tiered market increasingly appears inevitable in Japan, with investors focusing on highly profitable companies that possess leading global technologies, products, or

competitive positions at the expense of highly leveraged, poorly profitable companies. In China, the government’s reforms continue apace, with examples ranging from posting judicial decisions online in a searchable database, thereby improving the rule of law in a nation targeting greater market-oriented reforms, to connecting the Shanghai stock market with the Hong Kong stock market to create the world’s second-largest stock market. We believe that such far-reaching and profound changes, particularly in China’s financial markets, present an increasingly well-set table for properly placed investors in China over the coming months and years.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT International Equity Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the

entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period1		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	938.44	$	3.37		0.69	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.73	$	3.52		0.69	%
Class 2
Actual	$	1,000.00	$	937.93	$	4.59		0.94	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.47	$	4.79		0.94	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT International Equity Fund 9

Security name	Shares		Value
Common Stocks: 87.38%
Canada: 1.84%
Valeant Pharmaceuticals International Incorporated (Health Care, Pharmaceuticals) †		44,210	$	6,326,893
China: 5.08%
Biostime International Holdings Limited (Consumer Staples, Food Products) «		747,500		1,532,384
Dongfeng Motor Group Company Limited (Consumer Discretionary, Automobiles)		4,816,000		6,736,725
Industrial & Commercial Bank of China Limited Class H (Financials, Banks)		8,471,000		6,185,455
Xtep International Holdings Limited (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		7,477,453		3,005,551
				17,460,115
Germany: 9.10%
Bayer AG (Health Care, Pharmaceuticals)		51,399		7,006,114
Metro AG (Consumer Staples, Food & Staples Retailing) †		222,093		6,788,870
Rheinmetall AG (Industrials, Industrial Conglomerates)		39,323		1,712,087
SAP AG (Information Technology, Software)		88,658		6,190,843
Siemens AG (Industrials, Industrial Conglomerates)		85,346		9,576,152
				31,274,066
Hong Kong: 7.30%
China Everbright Limited (Financials, Capital Markets)		5,848,000		13,838,562
China Mobile Limited (Telecommunication Services, Wireless Telecommunication Services)		732,000		8,573,730
Value Partners Group Limited (Financials, Capital Markets)		3,193,000		2,664,596
				25,076,888
Italy: 8.57%
Anima Holding SpA (Financials, Capital Markets) †		1,620,180		8,150,757
ENI SpA (Energy, Oil, Gas & Consumable Fuels)		298,804		5,233,994
Intesa Sanpaolo SpA (Financials, Banks)		2,358,722		6,842,418
Prysmian SpA (Industrials, Electrical Equipment)		505,182		9,206,311
				29,433,480
Japan: 19.32%
Daiwa House Industry Company Limited (Financials, Real Estate Management & Development)		536,900		10,142,704
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components)		1,351,000		9,971,409
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks)		1,978,200		10,868,675
Mitsui Fudosan Company Limited (Financials, Real Estate Management & Development)		248,000		6,650,254
Mitsui OSK Lines Limited (Industrials, Marine)		1,734,000		5,137,395
Nitto Denko Corporation (Materials, Chemicals)		85,082		4,753,999
Nomura Holdings Incorporated (Financials, Capital Markets)		1,434,900		8,120,149
Sharp Corporation (Consumer Discretionary, Household Durables) †		729,000		1,612,763
Toyota Motor Corporation (Consumer Discretionary, Automobiles)		107,600		6,705,346
West Holdings Corporation (Consumer Discretionary, Household Durables) «		251,800		2,097,733
Yaskawa Electric Corporation (Information Technology, Electronic Equipment, Instruments & Components)		23,400		298,891
				66,359,318
Netherlands: 2.73%
Akzo Nobel NV (Materials, Chemicals)		135,473		9,373,379
Norway: 2.69%
Frontline 2012 Limited (Energy, Oil, Gas & Consumable Fuels) 144A		356,875		1,891,394

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

10 Wells Fargo Advantage VT International Equity Fund Portfolio of investments—December 31, 2014

Security name						Shares		Value
Norway (continued)
Marine Harvest ASA (Consumer Staples, Food Products)							535,841	$	7,357,322
									9,248,716
South Korea: 4.39%
Hana Financial Group Incorporated (Financials, Banks)							189,016		5,474,334
Samsung Electronics Company Limited GDR (Information Technology, Semiconductors & Semiconductor Equipment)							11,122		6,675,948
SK Telecom Company Limited (Telecommunica tion Services, Wireless Telecommunication Services)							11,919		2,915,302
									15,065,584
Sweden: 1.36%
Volvo AB Class B (Industrials, Machinery)							433,686		4,676,648
Switzerland: 7.46%
ABB Limited (Industrials, Electrical Equipment)							380,946		8,060,108
Novartis AG (Health Care, Pharmaceuticals)							80,062		7,425,228
Zurich Financial Services AG (Financials, Insurance)							32,395		10,123,512
									25,608,848
United Kingdom: 15.53%
BP plc (Energy, Oil, Gas & Consumable Fuels)							1,321,007		8,385,192
Capita plc (Industrials, Professional Services)							240,351		4,030,131
Indivior plc (Health Care, Pharmaceuticals) †							70,467		164,086
Man Group plc (Financials, Capital Markets)							4,363,150		10,857,113
Reckitt Benckiser Group plc (Consumer Staples, Household Products)							70,467		5,707,400
Smiths Group plc (Industrials, Industrial Conglomerates)							335,857		5,710,952
Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services)							2,669,811		9,153,784
Wolseley plc (Industrials, Trading Companies & Distributors)							163,318		9,337,185
									53,345,843
United States: 2.01%
QUALCOMM Incorporated (Information Technology, Communications Equipment)							92,987		6,911,724
Total Common Stocks (Cost $269,172,738)									300,161,502
				Expiration date
Participation Notes: 1.26%
China: 1.26%
HSBC Bank plc (Kweichow Moutai Company Limited) (Consumer Staples, Beverages) †					2-19-2019		39,500		1,206,701
Standard Chartered Bank plc (Kweichow Moutai Company Limited) (Consumer Staples, Beverages) †					4-24-2015		101,671		3,105,986
Total Participation Notes (Cost $3,394,211)									4,312,687
	Dividend yield
Preferred Stocks: 0.99%
Germany : 0.99%
Volkswagen AG (Consumer Discretionary, Automobiles)		2.50	%				15,241		3,387,394
Total Preferred Stocks (Cost $3,535,526)									3,387,394

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT International Equity Fund 11

Security name	Yield			Shares		Value
Short-Term Investments: 8.29%
Investment Companies: 8.29%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.14	%		1,127,040	$	1,127,040
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08			27,360,559		27,360,559
Total Short-Term Investments (Cost $28,487,599)							28,487,599

Total investments in securities (Cost $304,590,074) *	97.92	%		336,349,182
Other assets and liabilities, net	2.08			7,159,549
Total net assets	100.00	%	$	343,508,731

† Non-income-earning security

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

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $307,846,042 and unrealized gains (losses) consists of:

Gross unrealized gains	$	45,566,585
Gross unrealized losses		(17,063,445	)
Net unrealized gains	$	28,503,140

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

12 Wells Fargo Advantage VT International Equity Fund Statement of assets and liabilities—December 31, 2014

Assets
Investments
In unaffiliated securities (including $1,062,858 of securities loaned), at value (cost $276,102,475)	$	307,861,583
In affiliated securities, at value (cost $28,487,599)		28,487,599
Total investments, at value (cost $304,590,074)		336,349,182
Foreign currency, at value (cost $2,694,411)		2,497,414
Receivable for investments sold		3,299,786
Receivable for Fund shares sold		61,641
Receivable for dividends		793,507
Receivable for securities lending income		2,451
Unrealized gains on forward foreign currency contracts		2,148,958
Prepaid expenses and other assets		8,947
Total assets		345,161,886
Liabilities
Payable for Fund shares redeemed		177,267
Unrealized losses on forward foreign currency contracts		10,215
Payable upon receipt of securities loaned		1,127,040
Advisory fee payable		150,854
Distribution fee payable		68,944
Administration fees payable		39,622
Accrued expenses and other liabilities		79,213
Total liabilities		1,653,155
Total net assets	$	343,508,731
NET ASSETS CONSIST OF
Paid-in capital	$	302,980,800
Undistributed net investment income		11,208,738
Accumulated net realized losses on investments		(4,420,096	)
Net unrealized gains on investments		33,739,289
Total net assets	$	343,508,731
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	32,599,307
Shares outstanding – Class 11		6,620,567
Net asset value per share – Class 1		$4.92
Net assets – Class 2	$	310,909,424
Shares outstanding – Class 21		62,852,108
Net asset value per share – Class 2		$4.95

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

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

Statement of operations—year ended December 31, 2014 Wells Fargo Advantage VT International Equity Fund 13

Investment income
Dividends (net of foreign withholding taxes of $889,923)	$	13,778,254
Securities lending income, net		227,500
Income from affiliated securities		10,470
Total investment income		14,016,224
Expenses
Advisory fee		2,611,123
Administration fees
Fund level		174,075
Class 1		29,086
Class 2		249,434
Distribution fee
Class 2		779,479
Custody and accounting fees		105,090
Professional fees		63,590
Shareholder report expenses		33,073
Trustees’ fees and expenses		6,534
Other fees and expenses		17,889
Total expenses		4,069,373
Less: Fee waivers and/or expense reimbursements		(887,660	)
Net expenses		3,181,713
Net investment income		10,834,511
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		2,185,240
Forward foreign currency contract transactions		16,023
Net realized gains on investments		2,201,263
Net change in unrealized gains (losses) on:
Unaffiliated securities		(31,802,378	)
Forward foreign currency contract transactions		(230,655	)
Net change in unrealized gains (losses) on investments		(32,033,033	)
Net realized and unrealized gains (losses) on investments		(29,831,770	)
Net decrease in net assets resulting from operations	$	(18,997,259	)

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

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

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment income				$	10,834,511					$	7,318,104
Net realized gains on investments					2,201,263						8,411,771
Net change in unrealized gains (losses) on investments					(32,033,033	)					47,145,405
Net increase (decrease) in net assets resulting from operations					(18,997,259	)					62,875,280
Distributions to shareholders from
Net investment income
Class 1					(1,068,920	)					(975,031	)
Class 2					(8,395,187	)					(6,448,989	)
Net realized gains
Class 1					(836,185	)					(2,022,711	)
Class 2					(7,242,278	)					(14,996,715	)
Total distributions to shareholders					(17,542,570	)					(24,443,446	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		448,360			2,313,021			886,423			4,581,525
Class 2		6,415,713			32,449,977			2,050,177			10,408,251
					34,762,998						14,989,776
Reinvestment of distributions
Class 1		367,780			1,905,105			610,538			2,997,742
Class 2		3,001,422			15,637,465			4,341,236			21,445,704
					17,542,570						24,443,446
Payment for shares redeemed
Class 1		(1,861,970	)		(9,716,924	)		(2,556,446	)		(13,206,020	)
Class 2		(4,628,256	)		(24,125,462	)		(8,200,329	)		(42,867,613	)
					(33,842,386	)					(56,073,633	)
Net increase (decrease) in net assets resulting from capital share transactions					18,463,182						(16,640,411	)
Total increase (decrease) in net assets					(18,076,647	)					21,791,423
Net assets
Beginning of period					361,585,378						339,793,955
End of period				$	343,508,731					$	361,585,378
Undistributed net investment income				$	11,208,738					$	7,235,405

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

Financial highlights Wells Fargo Advantage VT International Equity Fund 15

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2014			2013			2012			2011			20101
Net asset value, beginning of period		$5.48			$4.94			$4.77			$5.75			$5.15
Net investment income		0.18	2		0.12	2		0.13	2		0.11	2		0.05	2
Net realized and unrealized gains (losses) on investments		(0.46	)		0.82			0.45			(0.80	)		0.78
Total from investment operations		(0.28	)		0.94			0.58			(0.69	)		0.83
Distributions to shareholders from
Net investment income		(0.16	)		(0.13	)		(0.08	)		(0.04	)		(0.05	)
Net realized gains		(0.12	)		(0.27	)		(0.33	)		(0.25	)		(0.18	)
Total distributions to shareholders		(0.28	)		(0.40	)		(0.41	)		(0.29	)		(0.23	)
Net asset value, end of period		$4.92			$5.48			$4.94			$4.77			$5.75
Total return		(5.30	)%		19.94	%		13.68	%		(12.79	)%		16.79	%
Ratios to average net assets (annualized)
Gross expenses		0.94	%		0.95	%		0.98	%		0.97	%		0.85	%
Net expenses		0.69	%		0.69	%		0.69	%		0.69	%		0.66	%
Net investment income		3.44	%		2.36	%		2.68	%		2.06	%		1.04	%
Supplemental data
Portfolio turnover rate		39	%		32	%		140	%		66	%		60	%
Net assets, end of period (000s omitted)		$32,599			$42,021			$43,089			$46,017			$67,659

^1.  After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA International Equity Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 19, 2010 is that of Class 1 of Evergreen VA International Equity Fund. The per share information has been adjusted to give effect to this transaction.

^2.  Calculated based upon average shares outstanding

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

16 Wells Fargo Advantage VT International Equity Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$5.50			$4.96			$4.78			$5.74			$5.15
Net investment income		0.16			0.11	2		0.11			0.09	2		0.06	2
Net realized and unrealized gains (losses) on investments		(0.45	)		0.82			0.47			(0.79	)		0.75
Total from investment operations		(0.29	)		0.93			0.58			(0.70	)		0.81
Distributions to shareholders from
Net investment income		(0.14	)		(0.12	)		(0.07	)		(0.01	)		(0.04	)
Net realized gains		(0.12	)		(0.27	)		(0.33	)		(0.25	)		(0.18	)
Total distributions to shareholders		(0.26	)		(0.39	)		(0.40	)		(0.26	)		(0.22	)
Net asset value, end of period		$4.95			$5.50			$4.96			$4.78			$5.74
Total return		(5.35	)%		19.52	%		13.48	%		(12.91	)%		16.50	%
Ratios to average net assets (annualized)
Gross expenses		1.20	%		1.20	%		1.23	%		1.22	%		0.97	%
Net expenses		0.94	%		0.94	%		0.94	%		0.94	%		0.89	%
Net investment income		3.07	%		2.08	%		2.41	%		1.75	%		1.22	%
Supplemental data
Portfolio turnover rate		39	%		32	%		140	%		66	%		60	%
Net assets, end of period (000s omitted)		$310,909			$319,565			$296,705			$227,692			$218,348

^1.  After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA International Equity Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 19, 2010 is that of Class 2 of Evergreen VA International Equity Fund. The per share information has been adjusted to give effect to this transaction.

^2.  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Advantage VT International Equity Fund 17

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT International Equity Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”).

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On December 31, 2014, such fair value pricing was used in pricing foreign securities.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

18 Wells Fargo Advantage VT International Equity Fund Notes to financial statements

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Forward foreign currency contracts

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

Security loans

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

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

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Notes to financial statements Wells Fargo Advantage VT International Equity Fund 19

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to forward foreign currency transactions and recognition of partnership income. At December 31, 2014, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$2,602,929	$(2,602,929)

As of December 31, 2014, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

	No expiration
2017	Short-term
$2,669,056	$642,274

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

20 Wells Fargo Advantage VT International Equity Fund Notes to financial statements

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Canada	$	6,326,893	$	0	$	0	$	6,326,893
China		0		17,460,115		0		17,460,115
Germany		0		31,274,066		0		31,274,066
Hong Kong		0		25,076,888		0		25,076,888
Italy		0		29,433,480		0		29,433,480
Japan		0		66,359,318		0		66,359,318
Netherlands		0		9,373,379		0		9,373,379
Norway		1,891,394		7,357,322		0		9,248,716
South Korea		0		15,065,584		0		15,065,584
Sweden		0		4,676,648		0		4,676,648
Switzerland		0		25,608,848		0		25,608,848
United Kingdom		164,086		53,181,757		0		53,345,843
United States		6,911,724		0		0		6,911,724
Participation notes
China		0		4,312,687		0		4,312,687
Preferred stocks
Germany		0		3,387,394		0		3,387,394
Short-term investments
Investment companies		27,360,559		1,127,040		0		28,487,599
		42,654,656		293,694,526		0		336,349,182
Forward foreign currency contracts		0		2,148,958		0		2,148,958
Total assets	$	42,654,656	$	295,843,484	$	0	$	338,498,140
Liabilities
Forward foreign currency contracts	$	0	$	10,215	$	0	$	10,215
Total liabilities	$	0	$	10,215	$	0	$	10,215

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

The Fund recognizes transfers between levels at the end of the reporting period. At December 31, 2014, fair value pricing was used in pricing certain foreign securities and securities valued at $288,254,799 were transferred from Level 1 to Level 2 within the fair value hierarchy. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.75% and declining to 0.60% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.75% of the Fund’s average daily net assets.

Notes to financial statements Wells Fargo Advantage VT International Equity Fund 21

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.40% as the average daily net assets of the Fund increase.

Administration 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 from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.69% for Class 1 shares and 0.94% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2014 were $127,870,241 and $140,641,848, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2014, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At December 31, 2014, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver			U.S. value at December 31, 2014		In exchange for U.S. $		Unrealized gains (losses)
1-2-2015	Brown Brothers Harriman		540,740	GBP	$	842,798	$	841,608	$	(1,190	)
1-5-2015	Deutsche Bank		692,439	GBP		1,079,237		1,079,270		33
1-6-2015	Citibank		165,027,088	JPY		1,377,752		1,368,727		(9,025	)
1-8-2015	Barclays		2,503,433,800	JPY		20,900,618		23,049,543		2,148,925

The Fund had average contract amounts of $1,485,003 and $29,513,993 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the year ended December 31, 2014.

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

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

22 Wells Fargo Advantage VT International Equity Fund Notes to financial statements

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

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities			Amounts subject to netting agreements		Collateral received		Net amount of assets
Forward foreign currency contracts	Barclays	$	2,148,925	*	$	0	$	0	$	2,148,925
Forward foreign currency contracts	Deutsche Bank		33	*		0		0		33

* Amount represents net unrealized gains.

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities			Amounts subject to netting agreements		Collateral pledged		Net amount of liabilities
Forward foreign currency contracts	Brown Brothers Harriman	$	1,190	**	$	0	$	0	$	1,190
Forward foreign currency contracts	Citibank		9,025	**		0		0		9,025

** Amount represents net unrealized losses.

7. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $672 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

8. CONCENTRATION RISK

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

9. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2014 and December 31, 2013 were as follows:

	Year ended December 31
	2014	2013
Ordinary income	$9,464,107	$7,424,020
Long-term capital gain	8,078,463	17,019,426

Notes to financial statements Wells Fargo Advantage VT International Equity Fund 23

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$13,355,940	$30,491,780	$(3,311,330)

10. INDEMNIFICATION

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

24 Wells Fargo Advantage VT International Equity Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT International Equity Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT International Equity Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $8,078,463 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2014.

Pursuant to Section 853 of the Internal Revenue Code, the following amounts have been designated as foreign taxes paid for the fiscal year ended December 31, 2014. These amounts may be less than the actual foreign taxes paid for financial statement purposes. Foreign taxes paid or withheld should be included in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. None of the income was derived from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code.

Creditable foreign taxes paid	Per share amount	Foreign income as % of ordinary income distributions
$476,738	$0.0069	82.83%

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management , LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2. The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

28 Wells Fargo Advantage VT International Equity Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230413 02-15

AVT3/AR149 12-14

Wells Fargo Advantage VT Intrinsic Value Fund

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	16
Report of independent registered public accounting firm	20
Other information	21
List of abbreviations	24

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Intrinsic Value Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Intrinsic Value Fund for the 12-month period that ended December 31, 2014. Improving U.S. economic data and strong corporate earnings helped drive positive returns for U.S. stocks overall in 2014. In contrast, many economies and markets elsewhere in the world faced significant ongoing challenges during the period.

2014’s fitful start gave way to a rally that carried through the second quarter of 2014.

Following a difficult first quarter for the U.S. economy—when unusually harsh weather kept consumers at home, disrupted business activities, and ultimately drove a 2.1% contraction in real gross domestic product (GDP)—the second quarter of 2014 brought warmer temperatures, and the U.S. economy picked up steam. Investors were heartened by encouraging economic data, driving stocks higher. In Europe, signs of economic improvement faded when GDP stagnated during the second quarter. Although select peripheral countries, such as Spain and Portugal, provided bright spots, some of Europe’s larger economies were pressured by weak economic growth and potential deflation. European stock returns generally were positive but lackluster.

U.S. Federal Reserve (Fed) officials continued winding down their bond-buying program during the second quarter, leaving it on pace to end in 2014. They also revisited the question of when to begin raising short-term interest rates from near zero and released new projections showing rates rising more than previously expected in 2015 and 2016; however, they slightly reduced their projections for rates over the longer term. The markets took this information in stride, with both U.S. stocks and bonds rallying.

Positive U.S. economic data—but increased tensions abroad—led to heightened volatility in the third quarter of 2014.

The third quarter brought a series of stock market surges that were interrupted by bouts of volatility as interest-rate concerns in the U.S. and increased tensions abroad triggered heightened investor uncertainty. In July, an escalating Russia/Ukraine situation and a growing perception that the Fed would raise short-term interest rates sooner than expected caused investors to pull back toward month-end; as a result, the S&P 500 Index¹ dropped into negative territory for its overall monthly return. However, August brought a bounce-back—the S&P 500 Index delivered its largest monthly gain since February 2014 on a string of positive economic news, led by an upwardly revised 4.2% estimate of second-quarter 2014 GDP growth. Then, in September, stock market volatility rose as positive economic data became overshadowed at times by growing discomfort over escalating tensions in Ukraine and the Middle East. Signs of slowing growth in Europe and China also concerned investors. Ultimately, U.S. stocks ended the third quarter up slightly overall, buoyed largely by another upward revision of second-quarter GDP growth (to 4.6%). Strong corporate earnings also contributed to market gains, with a large number of U.S. companies exceeding consensus estimates for both revenues and earnings per share.

^1.  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Intrinsic Value Fund 3

The fourth quarter of 2014 brought continued improvement in the U.S.; international economies remained challenged.

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014. The last several, in December, were spurred by investor optimism following Fed Chair Janet Yellen’s comment that the Fed would be patient in its timing of an interest-rate increase. U.S. stocks also were boosted by positive data reflecting an economy continuing to strengthen. November’s 5.8% unemployment rate was down from 7.0% a year earlier, and the number of jobs being added continued to expand, keeping U.S. employers on pace to hire nearly three million workers during 2014—the most since 1999. In addition, the U.S. economy’s third-quarter growth rate was revised upward during the quarter, to 5.0%—its fastest pace in 11 years. Meanwhile, U.S. companies continued to report strong earnings during the quarter, providing an additional catalyst for stocks. The steadily brightening U.S. economy energized consumers, who were further buoyed by much lower prices at the gasoline pump. During the fourth quarter, gasoline prices fell to their lowest levels in five years, according to the American Automobile Association.

As the U.S. churned forward, major economies elsewhere in the world faced significant ongoing challenges. Growth in China continued to slow, Japan remained in a recession that had begun the previous quarter, and Russia’s economy contracted for the first time since 2009 as the country struggled under the weight of slumping oil prices, international sanctions, and massive outflows of capital. In the eurozone, growth remained sluggish as member countries faced an environment of low demand, high unemployment, and weak business investment.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014.

We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

4 Wells Fargo Advantage VT Intrinsic Value Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Metropolitan West Capital Management, LLC

Portfolio managers

Jeffrey Peck

Jean-Baptiste Nadal, CFA

Miguel E. Giaconi, CFA

Average annual total returns¹ (%) as of December 31, 2014

								Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		Gross		Net3
Class 2	5-6-1996		10.31		13.85		6.19		1.13		1.01
Russell 1000® Value Index4	–		13.45		15.42		7.30		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

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

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Intrinsic Value Fund 5

Growth of $10,000 investment⁵ as of December 31, 2014

^1.  Historical performance shown for Class 2 of the Fund prior to July 19, 2010, is based on the performance of the Fund’s predecessor, Wells Fargo Advantage VT Equity Income Fund.

^2.  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

^3.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 1.00% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

^4.  The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

^5.  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 1000^® Value Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^6.  The ten largest equity holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^7.  Sector distribution is subject to change and is calculated based on the total long-term investments of the Fund.

* This security was not held in the Fund at the end of the reporting period.

6 Wells Fargo Advantage VT Intrinsic Value Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 1000 Value Index, for the 12-month period that ended December 31, 2014.

n Stock selection accounted for all of the Fund’s underperformance. Relative sector weightings, which are a by-product of our bottom-up security selection process, contributed to performance relative to the index during the period.

n Security selection in the financials, consumer staples, and information technology (IT) sectors detracted from relative return. However, the negative effect was partially offset by an overweight to the IT sector, which was the best-performing sector in the index. Stock selection in the consumer discretionary and industrials sectors enhanced relative performance.

Stock selection was the primary source of underperformance during the 12-month period.

During the period, stock selection in the financials, consumer staples, and IT sectors detracted from relative performance. The negative effect was partially offset by an IT sector overweight. Primary detractors included wealth management services provider UBS Group AG in the financials sector, global premium spirits provider Diageo plc in the consumer staples sector, and semiconductor producer QUALCOMM Incorporated^* in the IT sector.

Ten largest equity holdings6 (%) as of December 31, 2014
The Walt Disney Company	3.26
Express Scripts Holding Company	3.21
Goldman Sachs Group Incorporated	3.18
BB&T Corporation	2.84
TRW Automotive Holdings Corporation	2.84
Time Warner Incorporated	2.75
The Procter & Gamble Company	2.75
Cigna Corporation	2.70
Chubb Corporation	2.66
The Boeing Company	2.63

Security selection in the consumer discretionary and industrials sectors enhanced relative performance. Top contributors included global auto parts supplier TRW Automotive Holdings Corporation in the consumer discretionary sector and supplier of sensors and controls Sensata Technologies Holding NV in the industrials sector.

The Fund’s non-U.S. holdings detracted from relative performance. However, we continue to maintain our global research perspective, which we believe allows us to fully understand the future investment potential of the companies in which we invest by providing context on their worldwide competitors, suppliers, and customers. We continue to have a positive long-term outlook for the

Fund’s non-U.S. investments—large, global companies located in developed, politically stable countries—and believe the portfolio is positioned to perform more favorably in the future.

Sector distribution⁷ as of December 31, 2014

During the past 12 months, we added several high-quality investments to the Fund’s holdings and divested several positions according to our disciplined investment process.

The Fund’s energy sector underweight decreased with new investments in energy industry equipment manufacturer FMC Technologies Incorporated and exploration and production companies EOG Resources Incorporated and BG Group plc, despite the sale of integrated energy company Hess Corporation* and

exploration and production company QEP Resources Incorporated*. The Fund gained exposure to the telecommunication services sector with the purchase of Verizon Communications Incorporated. The Fund’s IT sector overweight narrowed with the divestment of financial management software provider Intuit Incorporated* and technology solutions provider IBM Corporation*. We added to the Fund’s IT sector investments with purchases of software company Microsoft Corporation and money transfer and payment service provider The Western Union Company. Meanwhile, the overweight to the consumer discretionary sector decreased with sale of home-improvement retailer The Home Depot Incorporated* and specialty jewelry

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Intrinsic Value Fund 7

retailer Tiffany & Company*, despite the purchase of hospitality company Marriott International Incorporated. The Fund’s financials sector underweight was reduced with the purchase of regional bank BB&T Corporation and property and casualty insurance company The Chubb Corporation. Those purchases were partially offset by the sale of regional bank Zions Bancorporation*. The Fund’s consumer staples sector overweight was reduced with the sale of American chocolatier The Hershey Company*, despite our purchases of global brewer Anheuser-Busch InBev and household and personal care products provider The Procter & Gamble Company.

We believe individual company fundamentals will ultimately determine security performance.

During 2014, investors experienced the lingering impacts of the U.S. Federal Reserve’s (Fed’s) quantitative easing–related bond-buying program. During the past several years, the Fed’s accommodative monetary policy and low-interest-rate environment encouraged investment in riskier assets, particularly equities. This environment has been challenging for us and other active managers as low-quality companies have tended to outperform high-quality companies. We believe high-quality investments shifted toward improved relative performance patterns during the fourth quarter and that the U.S. economy is poised for continued growth in 2015. In this environment, we expect high-quality companies with strong balance sheets and free cash flows should outperform lower-quality companies on both an absolute and relative basis. If the U.S. economy is negatively affected by slow growth in Europe or Asia or lower oil prices, we also anticipate high-quality companies could post stronger relative performance, although slower revenue growth could affect absolute returns.

We remain committed to our intrinsic value investment approach, seeking high-quality companies with stock prices that we believe are trading at a significant discount to our intrinsic value estimates and where we can identify catalysts that we believe may close the value gap over our investment horizon.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Intrinsic Value Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	1,039.74	$	5.14		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Intrinsic Value Fund 9

Security name	Shares		Value
Common Stocks: 98.51%
Consumer Discretionary: 12.66%
Auto Components: 2.83%
TRW Automotive Holdings Corporation †		12,762	$	1,312,572
Hotels, Restaurants & Leisure: 2.00%
Marriott International Incorporated		11,884		927,309
Media: 6.01%
The Walt Disney Company		16,002		1,507,228
Time Warner Incorporated		14,921		1,274,552
				2,781,780
Textiles, Apparel & Luxury Goods: 1.82%
Kering Unsponsored ADR		43,906		840,800
Consumer Staples: 10.51%
Beverages: 5.85%
Anheuser-Busch InBev ADR		10,785		1,211,371
Diageo plc ADR		4,235		483,171
PepsiCo Incorporated		10,734		1,015,007
				2,709,549
Food Products: 1.91%
Unilever NV ADR		22,591		881,953
Household Products: 2.75%
The Procter & Gamble Company		13,970		1,272,527
Energy: 8.27%
Energy Equipment & Services: 3.80%
FMC Technologies Incorporated †		21,541		1,008,980
Schlumberger Limited		8,812		752,633
				1,761,613
Oil, Gas & Consumable Fuels: 4.47%
BG Group plc ADR		37,630		502,737
EOG Resources Incorporated		9,666		889,949
Occidental Petroleum Corporation		8,368		674,544
				2,067,230
Financials: 21.04%
Banks: 7.67%
BB&T Corporation		33,790		1,314,093
JPMorgan Chase & Company		18,103		1,132,886
SunTrust Banks Incorporated		26,303		1,102,096
				3,549,075

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

10 Wells Fargo Advantage VT Intrinsic Value Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Capital Markets: 10.71%
Charles Schwab Corporation		26,466	$	799,009
Franklin Resources Incorporated		15,806		875,178
Goldman Sachs Group Incorporated		7,599		1,472,914
Northern Trust Corporation		15,638		1,054,001
UBS Group AG		44,437		757,651
				4,958,753
Insurance: 2.66%
Chubb Corporation		11,917		1,233,052
Health Care: 11.66%
Health Care Equipment & Supplies: 4.44%
Abbott Laboratories		26,310		1,184,476
Baxter International Incorporated		11,883		870,905
				2,055,381
Health Care Providers & Services: 5.91%
Cigna Corporation		12,129		1,248,195
Express Scripts Holding Company †		17,568		1,487,483
				2,735,678
Pharmaceuticals: 1.31%
AbbVie Incorporated		9,295		608,265
Industrials: 11.97%
Aerospace & Defense: 6.96%
Honeywell International Incorporated		11,695		1,168,564
Huntington Ingalls Industries Incorporated		7,430		835,578
The Boeing Company		9,365		1,217,263
				3,221,405
Air Freight & Logistics: 2.41%
United Parcel Service Incorporated Class B		10,031		1,115,146
Electrical Equipment: 2.60%
Sensata Technologies Holding NV †		23,026		1,206,793
Information Technology: 14.46%
Communications Equipment: 1.67%
QUALCOMM Incorporated		10,393		772,512
IT Services: 2.17%
The Western Union Company		56,088		1,004,536
Semiconductors & Semiconductor Equipment: 2.10%
Texas Instruments Incorporated		18,180		971,994

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Intrinsic Value Fund 11

Security name				Shares		Value
Software: 4.59%
Microsoft Corporation					20,391	$	947,162
Oracle Corporation					26,236		1,179,833
							2,126,995
Technology Hardware, Storage & Peripherals: 3.93%
Apple Incorporated					8,236		909,090
EMC Corporation					30,630		910,936
							1,820,026
Materials: 1.97%
Chemicals: 1.97%
E.I. du Pont de Nemours & Company					12,310		910,201
Telecommunication Services: 1.51%
Diversified Telecommunication Services: 1.51%
Verizon Communications Incorporated					14,908		697,396
Utilities: 4.46%
Electric Utilities: 4.46%
NextEra Energy Incorporated					11,138		1,183,858
Northeast Utilities					16,464		881,153
							2,065,011
Total Common Stocks (Cost $32,798,282)							45,607,552
	Yield
Short-Term Investments: 2.12%
Investment Companies: 2.12%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08	%		984,277		984,277
Total Short-Term Investments (Cost $984,277)							984,277

Total investments in securities (Cost $33,782,559) *	100.63	%		46,591,829
Other assets and liabilities, net	(0.63	)		(293,622	)
Total net assets	100.00	%	$	46,298,207

† Non-income-earning security

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

* Cost for federal income tax purposes is $33,787,158 and unrealized gains (losses) consists of:

Gross unrealized gains	$	13,297,260
Gross unrealized losses		(492,589	)
Net unrealized gains		$12,804,671

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

12 Wells Fargo Advantage VT Intrinsic Value Fund Statement of assets and liabilities—December 31, 2014

Assets
Investments
In unaffiliated securities, at value (cost $32,798,282)	$	45,607,552
In affiliated securities, at value (cost $984,277)		984,277
Total investments, at value (cost $33,782,559)		46,591,829
Receivable for Fund shares sold		13,300
Receivable for dividends		69,586
Receivable for securities lending income		18
Prepaid expenses and other assets		2,804
Total assets		46,677,537
Liabilities
Payable for investments purchased		205,341
Payable for Fund shares redeemed		97,893
Advisory fee payable		18,996
Distribution fee payable		10,231
Administration fee payable		5,320
Professional fees payable		32,483
Accrued expenses and other liabilities		9,066
Total liabilities		379,330
Total net assets	$	46,298,207
NET ASSETS CONSIST OF
Paid-in capital	$	27,112,741
Undistributed net investment income		362,775
Accumulated net realized gains on investments		6,013,421
Net unrealized gains on investments		12,809,270
Total net assets	$	46,298,207
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	46,298,207
Shares outstanding – Class 21		2,240,455
Net asset value per share – Class 2		$20.66

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

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

Statement of operations—year ended December 31, 2014 Wells Fargo Advantage VT Intrinsic Value Fund 13

Investment income
Dividends (net of foreign withholding taxes of $12,759)	$	843,186
Securities lending income, net		2,495
Income from affiliated securities		1,053
Total investment income		846,734
Expenses
Advisory fee		266,166
Administration fee		62,912
Distribution fee
Class 2		120,984
Custody and accounting fees		8,305
Professional fees		42,343
Shareholder report expenses		4,658
Trustees’ fees and expenses		11,858
Other fees and expenses		3,985
Total expenses		521,211
Less: Fee waivers and/or expense reimbursements		(37,274	)
Net expenses		483,937
Net investment income		362,797
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		6,916,346
Net change in unrealized gains (losses) on investments		(2,563,404	)
Net realized and unrealized gains (losses) on investments		4,352,942
Net increase in net assets resulting from operations	$	4,715,739

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

14 Wells Fargo Advantage VT Intrinsic Value Fund Statement of changes in net assets

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment income				$	362,797					$	367,818
Net realized gains on investments					6,916,346						5,759,618
Net change in unrealized gains (losses) on investments					(2,563,404	)					6,914,033
Net increase in net assets resulting from operations					4,715,739						13,041,469
Distributions to shareholders from
Net investment income – Class 2					(367,828	)					(511,372	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		68,901			1,337,139			224,079			3,709,143
Reinvestment of distributions – Class 2		18,521			367,828			29,800			511,372
Payment for shares redeemed – Class 2		(568,515	)		(11,100,349	)		(714,028	)		(11,967,978	)
Net decrease in net assets resulting from capital share transactions					(9,395,382	)					(7,747,463	)
Total increase (decrease) in net assets					(5,047,471	)					4,782,634
Net assets
Beginning of period					51,345,678						46,563,044
End of period				$	46,298,207					$	51,345,678
Undistributed net investment income				$	362,775					$	367,806

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

Financial highlights Wells Fargo Advantage VT Intrinsic Value Fund 15

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101,2
Net asset value, beginning of period		$18.87			$14.63			$12.42			$12.76			$11.31
Net investment income		0.18			0.15			0.18			0.18			0.16
Net realized and unrealized gains (losses) on investments		1.76			4.27			2.22			(0.45	)		1.39
Total from investment operations		1.94			4.42			2.40			(0.27	)		1.55
Distributions to shareholders from
Net investment income		(0.15	)		(0.18	)		(0.19	)		(0.07	)		(0.10	)
Net asset value, end of period		$20.66			$18.87			$14.63			$12.42			$12.76
Total return		10.31	%		30.30	%		19.47	%		(2.15	)%		13.83	%
Ratios to average net assets (annualized)
Gross expenses		1.08	%		1.12	%		1.14	%		1.17	%		1.10	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income		0.75	%		0.74	%		1.07	%		1.17	%		1.29	%
Supplemental data
Portfolio turnover rate		26	%		22	%		22	%		26	%		72	%
Net assets, end of period (000s omitted)		$46,298			$51,346			$46,563			$46,285			$58,832

^1.  After the close of business on July 16, 2010, the Fund acquired the net assets of Wells Fargo Advantage VT Equity Income Fund and Wells Fargo Advantage VT C&B Large Cap Value Fund. Wells Fargo Advantage VT Equity Income Fund became the accounting and performance survivor in the transaction. The information for the periods prior to July 19, 2010 is that of Wells Fargo Advantage VT Equity Income Fund.

^2.  After the close of business on July 16, 2010, existing shares of Wells Fargo Advantage VT Equity Income Fund were renamed Class 2 shares.

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

16 Wells Fargo Advantage VT Intrinsic Value Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Intrinsic Value Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Security loans

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”).

Notes to financial statements Wells Fargo Advantage VT Intrinsic Value Fund 17

The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

18 Wells Fargo Advantage VT Intrinsic Value Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	5,862,461	$	0	$	0	$	5,862,461
Consumer staples		4,864,029		0		0		4,864,029
Energy		3,828,843		0		0		3,828,843
Financials		9,740,880		0		0		9,740,880
Health care		5,399,324		0		0		5,399,324
Industrials		5,543,344		0		0		5,543,344
Information technology		6,696,063		0		0		6,696,063
Materials		910,201		0		0		910,201
Telecommunication services		697,396		0		0		697,396
Utilities		2,065,011		0		0		2,065,011
Short-term investments
Investment companies		984,277		0		0		984,277
Total assets	$	46,591,829	$	0	$	0	$	46,591,829

Transfers in and transfers out are recognized at the end of the reporting period. At December 31, 2014, common stocks with a market value of $840,800 were transferred from Level 2 to Level 1 because of an increase in the market activity of these securities. At December 31, 2014, there were no transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.55% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Metropolitan West Capital Management, LLC, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.25% as the average daily net assets of the Fund increase.

Administration fee

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 from the Fund an annual administration fee starting at 0.13% and declining to 0.11% as the average daily net assets of the Fund increase.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Notes to financial statements Wells Fargo Advantage VT Intrinsic Value Fund 19

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2014 were $12,408,634 and $19,509,311, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $75 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $367,828 and $511,372 of ordinary income for the years ended December 31, 2014 and December 31,2013, respectively.

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$362,775	$6,018,020	$12,804,671

8. INDEMNIFICATION

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

20 Wells Fargo Advantage VT Intrinsic Value Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Intrinsic Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Intrinsic Value Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

Other information (unaudited) Wells Fargo Advantage VT Intrinsic Value Fund 21

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 100% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2014.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

22 Wells Fargo Advantage VT Intrinsic Value Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Advantage VT Intrinsic Value Fund 23

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1.  Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2.  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

24 Wells Fargo Advantage VT Intrinsic Value Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230414 02-15

AVT4/AR150 12-14

Wells Fargo Advantage VT Omega Growth Fund

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	18
Report of independent registered public accounting firm	22
Other information	23
List of abbreviations	26

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Omega Growth Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Omega Growth Fund for the 12-month period that ended December 31, 2014. Improving U.S. economic data and strong corporate earnings helped drive positive returns for U.S. stocks overall in 2014. In contrast, many economies and markets elsewhere in the world faced significant ongoing challenges during the period.

2014’s fitful start gave way to a rally that carried through the second quarter of 2014.

Following a difficult first quarter for the U.S. economy—when unusually harsh weather kept consumers at home, disrupted business activities, and ultimately drove a 2.1% contraction in real gross domestic product (GDP)—the second quarter of 2014 brought warmer temperatures, and the U.S. economy picked up steam. Investors were heartened by encouraging economic data, driving stocks higher. In Europe, signs of economic improvement faded when GDP stagnated during the second quarter. Although select peripheral countries, such as Spain and Portugal, provided bright spots, some of Europe’s larger economies were pressured by weak economic growth and potential deflation. European stock returns generally were positive but lackluster.

U.S. Federal Reserve (Fed) officials continued winding down their bond-buying program during the second quarter, leaving it on pace to end in 2014. They also revisited the question of when to begin raising short-term interest rates from near zero and released new projections showing rates rising more than previously expected in 2015 and 2016; however, they slightly reduced their projections for rates over the longer term. The markets took this information in stride, with both U.S. stocks and bonds rallying.

Positive U.S. economic data—but increased tensions abroad—led to heightened volatility in the third quarter of 2014.

The third quarter brought a series of stock market surges that were interrupted by bouts of volatility as interest-rate concerns in the U.S. and increased tensions abroad triggered heightened investor uncertainty. In July, an escalating Russia/Ukraine situation and a growing perception that the Fed would raise short-term interest rates sooner than expected caused investors to pull back toward month-end; as a result, the S&P 500 Index¹ dropped into negative territory for its overall monthly return. However, August brought a bounce-back—the S&P 500 Index delivered its largest monthly gain since February 2014 on a string of positive economic news, led by an upwardly revised 4.2% estimate of second-quarter 2014 GDP growth. Then, in September, stock market volatility rose as positive economic data became overshadowed at times by growing discomfort over escalating tensions in Ukraine and the Middle East. Signs of slowing growth in Europe and China also concerned investors. Ultimately, U.S. stocks ended the third quarter up slightly overall, buoyed largely by another upward revision of second-quarter GDP growth (to 4.6%). Strong corporate earnings also contributed to market gains, with a large number of U.S. companies exceeding consensus estimates for both revenues and earnings per share.

^1.  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Omega Growth Fund 3

The fourth quarter of 2014 brought continued improvement in the U.S.; international economies remained challenged.

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014. The last several, in December, were spurred by investor optimism following Fed Chair Janet Yellen’s comment that the Fed would be patient in its timing of an interest-rate increase. U.S. stocks also were boosted by positive data reflecting an economy continuing to strengthen. November’s 5.8% unemployment rate was down from 7.0% a year earlier, and the number of jobs being added continued to expand, keeping U.S. employers on pace to hire nearly three million workers during 2014—the most since 1999. In addition, the U.S. economy’s third-quarter growth rate was revised upward during the quarter, to 5.0%—its fastest pace in 11 years. Meanwhile, U.S. companies continued to report strong earnings during the quarter, providing an additional catalyst for stocks. The steadily brightening U.S. economy energized consumers, who were further buoyed by much lower prices at the gasoline pump. During the fourth quarter, gasoline prices fell to their lowest levels in five years, according to the American Automobile Association.

As the U.S. churned forward, major economies elsewhere in the world faced significant ongoing challenges. Growth in China continued to slow, Japan remained in a recession that had begun the previous quarter, and Russia’s economy contracted for the first time since 2009 as the country struggled under the weight of slumping oil prices, international sanctions, and massive outflows of capital. In the eurozone, growth remained sluggish as member countries faced an environment of low demand, high unemployment, and weak business investment.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014.

We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

4 Wells Fargo Advantage VT Omega Growth Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Thomas J. Pence, CFA

Michael T. Smith, CFA

Average annual total returns (%) as of December 31, 2014

								Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		Gross		Net2
Class 1	3-6-1997		4.09		14.85		9.95		0.79		0.75
Class 2	7-31-2002		3.86		14.57		9.67		1.04		1.00
Russell 3000® Growth Index3	–		12.44		15.89		8.50		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

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

Please see footnotes on page 5.

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

Growth of $10,000 investment⁴ as of December 31, 2014

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

^2.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

^3.  The Russell 3000^® Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Growth Index or the Russell 2000^® Growth Index. You cannot invest directly in an index.

^4.  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 3000^® Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

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

^6.  The ten largest equity holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^7.  Sector distribution is subject to change and is calculated based on the total long-term investments of the Fund.

* This security was not held in the Fund at the end of the reporting period.

6 Wells Fargo Advantage VT Omega Growth Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund lagged its benchmark, the Russell 3000 Growth Index, for the 12-month period that ended December 31, 2014.

n Stock selection in the energy and information technology (IT) sectors challenged relative performance; stock selection in the telecommunication services and health care sectors contributed positively to the Fund’s results.

Overall, 2014 was a good year for the U.S. economy and stock market.

Encouraging U.S. economic data, coupled with strong corporate earnings, drove positive U.S. stock returns for 2014 as measured by the S&P 500 Index⁵. U.S. stocks (led by larger caps) outperformed most international markets for the year despite near-constant market volatility driven by a series of geopolitical and macroeconomic issues, such as the potential for a U.S. interest-rate increase earlier than many investors had anticipated and the situation in Ukraine. The heightened uncertainty drove stock investors to at times seek the perceived safety of larger-cap stocks with lower relative valuations and higher dividend yields. This investor trend was especially evident during the two-month period from early March through early May 2014 when higher-valuation, higher-growth companies significantly underperformed slower-growing companies.

Ten largest equity holdings6 (%) as of December 31, 2014
Facebook Incorporated Class A	3.44
Apple Incorporated	2.90
Comcast Corporation Class A	2.70
Liberty Global plc Class C	2.65
IntercontinentalExchange Group Incorporated	2.60
SBA Communications Corporation Class A	2.56
Visa Incorporated Class A	2.37
Gilead Sciences Incorporated	2.20
Micron Technology Incorporated	2.16
AbbVie Incorporated	2.06

We believe that, in any market environment, a portfolio’s construction must balance risk and return. We strive to provide this balance through a portfolio composed of three distinct types of growth companies. Core growth holdings (typically 40%–50% of assets) are companies that we believe have stable growth records, proven management teams, and relatively low volatility. Developing situations (typically 40%–50% of assets) are firms we believe are entering a period of accelerated growth driven by a new product, business plan, or management team. The remainder of the portfolio (typically 5%–10% of assets) is dedicated to valuation opportunities—holdings we believe carry above-average growth potential and relatively high volatility. Our conviction level drives each stock’s relative weight in the portfolio. This direct relationship helps us position our highest-conviction ideas to potentially make a significant impact on performance.

Results from the energy and IT sectors challenged the Fund’s relative performance.

Positioning in the energy sector weighed on results. Our fundamentally based investment process tends to be challenged when stock prices are driven by macroeconomic factors rather than company-specific fundamentals. This dynamic was apparent during the second half of 2014 as weak global demand and an increasing oil supply caused crude-oil prices to fall precipitously, causing a widespread sell-off in energy stocks. Portfolio holdings Antero Resources Corporation and Pioneer Natural Resources Company were negatively affected and detracted from returns.

Positioning in the IT sector hindered relative performance. As investors shed higher-valuation stocks early in 2014, IT holdings suffered because the innovation implicit in these stocks often drives premium valuations. Furthermore, investors nervous about the macroenvironment responded by rotating to slower-growing, blue-chip IT stocks that tended not to possess the requisite level of growth or innovation to merit inclusion in the Fund.

Holdings in health care and telecommunication services contributed positively to results.

Security selection in the telecommunication services sector contributed positively to performance. Firms with a high level of earnings visibility garnered considerable interest in a stock market that was ripe with uncertainty. Longtime portfolio holding SBA Communications Corporation, an owner of cellular towers, is a prime example of a high-earnings-visibility stock. SBA’s growth has been driven by the spending required to support the secular growth of smartphones and mobile video and data consumption. Network density and the increased demand for towers have led to strong leasing revenue.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Omega Growth Fund 7

Also, SBA may continue participating in industry consolidation domestically and internationally via carrier-tower acquisition. These factors helped propel SBA’s shares higher in 2014.

Within the health care sector, our overweight to the biotechnology industry contributed positively to Fund performance. Biotech holding Celgene Corporation had been pressured early in 2014 on concerns that Revlimid, a blood cancer drug and Celgene’s biggest growth driver, could go generic sooner than anticipated. Based on our research, we believed these concerns were overdone and maintained the position. Our conviction was rewarded as Celgene continued to deliver strong results. Alexion Pharmaceuticals Incorporated^* also benefited Fund performance, driven by growth in geographic approvals and additional indications of the company’s core drug, Soliris.

Sector distribution⁷ as of December 31, 2014

We look forward to 2015.

As 2014 ended, the U.S. economy clearly was moving forward. We believe falling gas prices, a healthier job market, stable home values, and a stronger U.S. dollar could lead U.S. consumers to increase spending in 2015, which could initiate a cycle of rising business investment. However, we are not certain the U.S. economy is ready to shift into high gear. Global deflation, the impact of a rising U.S. dollar on international economies, and the recent collapse in commodity prices are major unresolved concerns that may hamper the U.S. economy in 2015.

Despite the Fund’s relative underperformance in 2014, we remain committed to our investment process. Many Fund holdings have continued to benefit from consolidation, have expanded capacity, and have taken market share. We have strong conviction in these holdings, and we believe a catalyst may eventually emerge that will lead investors to increasingly recognize the attractive valuations of high-growth companies and more consistently reward those offering strong, sustainable growth.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Omega Growth Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	1,020.03	$	3.82		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42	$	3.82		0.75	%
Class 2
Actual	$	1,000.00	$	1,019.33	$	5.09		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Omega Growth Fund 9

Security name	Shares		Value
Common Stocks: 98.81%
Consumer Discretionary: 21.84%
Auto Components: 1.21%
Delphi Automotive plc		17,630	$	1,282,054
Distributors: 1.85%
LKQ Corporation †		69,970		1,967,556
Hotels, Restaurants & Leisure: 2.57%
Chipotle Mexican Grill Incorporated †		2,700		1,848,177
MGM Resorts International †		41,500		887,270
				2,735,447
Internet & Catalog Retail: 1.74%
Amazon.com Incorporated †		5,950		1,846,583
Leisure Products: 0.95%
Polaris Industries Incorporated		6,656		1,006,653
Media: 8.58%
Comcast Corporation Class A		49,500		2,871,495
Liberty Global plc Class C †		58,222		2,812,705
Time Warner Incorporated		18,800		1,605,896
Twenty-First Century Fox Incorporated		47,400		1,820,397
				9,110,493
Specialty Retail: 1.56%
Advance Auto Parts Incorporated		10,420		1,659,698
Textiles, Apparel & Luxury Goods: 3.38%
Carter’s Incorporated		18,400		1,606,504
Under Armour Incorporated Class A †		29,260		1,986,754
				3,593,258
Consumer Staples: 1.52%
Beverages: 1.52%
Constellation Brands Incorporated Class A †		16,460		1,615,878
Energy: 3.16%
Energy Equipment & Services: 1.26%
Halliburton Company		27,400		1,077,642
Nabors Industries Limited		20,500		266,090
				1,343,732
Oil, Gas & Consumable Fuels: 1.90%
Antero Resources Corporation †«		13,049		529,528
Pioneer Natural Resources Company		8,342		1,241,707
Sanchez Energy Corporation †«		26,364		244,922
				2,016,157

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

10 Wells Fargo Advantage VT Omega Growth Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Financials: 8.57%
Banks: 0.81%
Texas Capital Bancshares Incorporated †		15,819	$	859,446
Capital Markets: 3.16%
Affiliated Managers Group Incorporated †		8,139		1,727,421
Raymond James Financial Incorporated		28,431		1,628,812
				3,356,233
Diversified Financial Services: 4.32%
IntercontinentalExchange Group Incorporated		12,600		2,763,054
McGraw Hill Financial Incorporated		20,600		1,832,988
				4,596,042
Insurance: 0.17%
eHealth Incorporated †		7,237		180,346
REITs: 0.11%
Outfront Media Incorporated		4,268		113,092
Health Care: 20.14%
Biotechnology: 8.67%
Biogen IDEC Incorporated †		5,970		2,026,517
Celgene Corporation †		18,880		2,111,917
Gilead Sciences Incorporated †		24,836		2,341,041
Puma Biotechnology Incorporated †		2,700		511,029
Regeneron Pharmaceuticals Incorporated †		1,400		574,350
Vertex Pharmaceuticals Incorporated †		13,900		1,651,320
				9,216,174
Health Care Providers & Services: 6.02%
Community Health Systems Incorporated †		24,400		1,315,648
DaVita HealthCare Partners Incorporated †		18,200		1,378,468
Envision Healthcare Holdings Incorporated †		47,151		1,635,668
McKesson Corporation		9,960		2,067,497
				6,397,281
Pharmaceuticals: 5.45%
AbbVie Incorporated		33,500		2,192,240
Bristol-Myers Squibb Company		16,210		956,876
Eli Lilly & Company		9,900		683,001
Perrigo Company plc		11,700		1,955,772
				5,787,889
Industrials: 11.83%
Airlines: 1.41%
Delta Air Lines Incorporated		30,390		1,494,884

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Omega Growth Fund 11

Security name	Shares		Value
Machinery: 4.76%
Allison Transmission Holdings Incorporated		33,800	$	1,145,820
Cummins Incorporated		11,400		1,643,538
Proto Labs Incorporated †«		16,772		1,126,408
Wabtec Corporation		13,200		1,146,948
				5,062,714
Professional Services: 0.80%
IHS Incorporated Class A †		7,423		845,331
Road & Rail: 3.55%
Canadian Pacific Railway Limited		8,300		1,599,327
Old Dominion Freight Line Incorporated †		17,400		1,350,936
Swift Transportation Company †		28,600		818,818
				3,769,081
Trading Companies & Distributors: 1.31%
United Rentals Incorporated †		13,650		1,392,437
Information Technology: 27.42%
Communications Equipment: 1.52%
Palo Alto Networks Incorporated †		13,148		1,611,550
Electronic Equipment, Instruments & Components: 2.69%
Cognex Corporation †		29,000		1,198,570
FLIR Systems Incorporated		10,789		348,593
TE Connectivity Limited		20,800		1,315,600
				2,862,763
Internet Software & Services: 8.31%
Alibaba Group Holding Limited ADR †		10,185		1,058,629
Facebook Incorporated Class A †		46,905		3,659,528
Google Incorporated Class A †		1,680		891,509
Google Incorporated Class C †		3,480		1,831,872
LinkedIn Corporation Class A †		3,600		826,956
Yelp Incorporated †		10,139		554,907
				8,823,401
IT Services: 4.80%
Alliance Data Systems Corporation †		4,300		1,230,015
Vantiv Incorporated Class A †		40,118		1,360,803
Visa Incorporated Class A		9,586		2,513,449
				5,104,267
Semiconductors & Semiconductor Equipment: 2.16%
Micron Technology Incorporated †		65,400		2,289,654
Software: 3.57%
Salesforce.com Incorporated †		23,720		1,406,833
ServiceNow Incorporated †		18,480		1,253,868

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

12 Wells Fargo Advantage VT Omega Growth Fund Portfolio of investments—December 31, 2014

Security name				Shares		Value
Software (continued)
Workday Incorporated Class A †					13,900	$	1,134,379
							3,795,080
Technology Hardware, Storage & Peripherals: 4.37%
Apple Incorporated					27,920		3,081,810
Western Digital Corporation					14,100		1,560,870
							4,642,680
Materials: 1.77%
Chemicals: 1.77%
Monsanto Company					15,785		1,885,833
Telecommunication Services: 2.56%
Wireless Telecommunication Services: 2.56%
SBA Communications Corporation Class A †					24,560		2,720,266
Total Common Stocks (Cost $81,956,567)							104,983,953
	Yield
Short-Term Investments: 2.48%
Investment Companies: 2.48%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.14	%		1,839,824		1,839,824
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08			789,414		789,414
Total Short-Term Investments (Cost $2,629,238)							2,629,238

Total investments in securities (Cost $84,585,805) *	101.29	%		107,613,191
Other assets and liabilities, net	(1.29	)		(1,367,891	)
Total net assets	100.00	%	$	106,245,300

† Non-income-earning security

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $84,869,945 and unrealized gains (losses) consists of:

Gross unrealized gains	$	25,424,063
Gross unrealized losses		(2,680,817	)
Net unrealized gains	$	22,743,246

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

Statement of assets and liabilities—December 31, 2014 Wells Fargo Advantage VT Omega Growth Fund 13

Assets
Investments
In unaffiliated securities (including $1,799,655 of securities loaned), at value (cost $81,956,567)	$	104,983,953
In affiliated securities, at value (cost $2,629,238)		2,629,238
Total investments, at value (cost $84,585,805)		107,613,191
Cash		47,043
Receivable for investments sold		1,301,786
Receivable for Fund shares sold		316,061
Receivable for dividends		23,277
Receivable for securities lending income		515
Prepaid expenses and other assets		3,140
Total assets		109,305,013
Liabilities
Payable for investments purchased		988,647
Payable for Fund shares redeemed		98,785
Payable upon receipt of securities loaned		1,839,824
Advisory fee payable		51,491
Distribution fee payable		13,072
Administration fees payable		12,218
Accrued expenses and other liabilities		55,676
Total liabilities		3,059,713
Total net assets	$	106,245,300
NET ASSETS CONSIST OF
Paid-in capital	$	70,794,671
Accumulated net investment loss		(1,964	)
Accumulated net realized gains on investments		12,425,204
Net unrealized gains on investments		23,027,389
Total net assets	$	106,245,300
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	47,209,801
Shares outstanding – Class 11		1,712,090
Net asset value per share – Class 1		$27.57
Net assets – Class 2	$	59,035,499
Shares outstanding – Class 21		2,195,772
Net asset value per share – Class 2		$26.89

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

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

14 Wells Fargo Advantage VT Omega Growth Fund Statement of operations—year ended December 31, 2014

Investment income
Dividends (net of foreign withholding taxes of $1,261)	$	739,310
Securities lending income, net		3,426
Income from affiliated securities		704
Total investment income		743,440
Expenses
Advisory fee		631,162
Administration fees
Fund level		57,378
Class 1		41,111
Class 2		50,695
Distribution fee
Class 2		158,422
Custody and accounting fees		16,954
Professional fees		42,975
Shareholder report expenses		4,504
Trustees’ fees and expenses		9,509
Other fees and expenses		5,366
Total expenses		1,018,076
Less: Fee waivers and/or expense reimbursements		(3,987	)
Net expenses		1,014,089
Net investment loss		(270,649	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		18,818,280
Net change in unrealized gains (losses) on investments		(14,397,747	)
Net realized and unrealized gains (losses) on investments		4,420,533
Net increase in net assets resulting from operations	$	4,149,884

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

Statement of changes in net assets Wells Fargo Advantage VT Omega Growth Fund 15

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment loss				$	(270,649	)				$	(297,870	)
Net realized gains on investments					18,818,280						24,911,776
Net change in unrealized gains (losses) on investments					(14,397,747	)					14,652,681
Net increase in net assets resulting from operations					4,149,884						39,266,587
Distributions to shareholders from
Net investment income
Class 1					0						(204,541	)
Class 2					0						(87,333	)
Net realized gains
Class 1					(10,058,181	)					(4,218,654	)
Class 2					(12,505,884	)					(5,377,169	)
Total distributions to shareholders					(22,564,065	)					(9,887,697	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		133,823			4,061,419			249,132			7,209,887
Class 2		157,458			4,688,183			110,803			3,160,430
					8,749,602						10,370,317
Reinvestment of distributions
Class 1		373,632			10,058,181			159,971			4,423,195
Class 2		475,870			12,505,884			201,049			5,464,502
					22,564,065						9,887,697
Payment for shares redeemed
Class 1		(499,773	)		(14,593,587	)		(576,458	)		(16,662,911	)
Class 2		(570,468	)		(16,585,288	)		(669,579	)		(18,890,390	)
					(31,178,875	)					(35,553,301	)
Net increase (decrease) in net assets resulting from capital share transactions					134,792						(15,295,287	)
Total increase (decrease) in net assets					(18,279,389	)					14,083,603
Net assets
Beginning of period					124,524,689						110,441,086
End of period				$	106,245,300					$	124,524,689
Accumulated net investment loss				$	(1,964	)				$	(2,191	)

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

16 Wells Fargo Advantage VT Omega Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2014			2013			2012			2011			20101
Net asset value, beginning of period		$32.78			$25.56			$22.78			$24.26			$20.42
Net investment income (loss)		(0.03	)		(0.01	)		0.11			(0.06	)		0.03
Net realized and unrealized gains (losses) on investments		1.22			9.81			4.43			(1.21	)		3.98
Total from investment operations		1.19			9.80			4.54			(1.27	)		4.01
Distributions to shareholders from
Net investment income		0.00			(0.12	)		0.00			0.00			(0.17	)
Net realized gains		(6.40	)		(2.46	)		(1.76	)		(0.21	)		0.00
Total distributions to shareholders		(6.40	)		(2.58	)		(1.76	)		(0.21	)		(0.17	)
Net asset value, end of period		$27.57			$32.78			$25.56			$22.78			$24.26
Total return		4.09	%		40.22	%		20.76	%		(5.36	)%		19.79	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.79	%		0.80	%		0.80	%		0.75	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.74	%
Net investment income (loss)		(0.10	)%		(0.12	)%		0.40	%		(0.27	)%		0.01	%
Supplemental data
Portfolio turnover rate		88	%		95	%		93	%		110	%		160	%
Net assets, end of period (000s omitted)		$47,210			$55,867			$47,842			$45,293			$54,246

^1.  After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund. Evergreen VA Omega Fund became the accounting and performance survivor in the transaction. The information for the period prior to July 19, 2010 is that of Class 1 of Evergreen VA Omega Fund.

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

Financial highlights Wells Fargo Advantage VT Omega Growth Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$32.19			$25.13			$22.48			$24.00			$20.19
Net investment income (loss)		(0.10	)		(0.12	)		0.02			(0.14	)		(0.07	)2
Net realized and unrealized gains (losses) on investments		1.20			9.68			4.39			(1.17	)		3.99
Total from investment operations		1.10			9.56			4.41			(1.31	)		3.92
Distributions to shareholders from
Net investment income		0.00			(0.04	)		0.00			0.00			(0.11	)
Net realized gains		(6.40	)		(2.46	)		(1.76	)		(0.21	)		0.00
Total distributions to shareholders		(6.40	)		(2.50	)		(1.76	)		(0.21	)		(0.11	)
Net asset value, end of period		$26.89			$32.19			$25.13			$22.48			$24.00
Total return		3.86	%		39.88	%		20.39	%		(5.54	)%		19.48	%
Ratios to average net assets (annualized)
Gross expenses		1.00	%		1.04	%		1.05	%		1.05	%		1.01	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income (loss)		(0.35	)%		(0.37	)%		0.12	%		(0.52	)%		(0.34	)%
Supplemental data
Portfolio turnover rate		88	%		95	%		93	%		110	%		160	%
Net assets, end of period (000s omitted)		$59,035			$68,658			$62,599			$66,756			$83,224

^1.  After the close of business on July 16, 2010, the Fund acquired the net assets of Evergreen VA Omega Fund and Wells Fargo Advantage VT Large Company Growth Fund. Evergreen VA Omega Fund became the accounting and performance survivor in the transaction. The information for the period prior to July 19, 2010 is that of Class 2 of Evergreen VA Omega Fund.

^2.  Calculated based upon average shares outstanding

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

18 Wells Fargo Advantage VT Omega Growth Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Omega Growth Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Security loans

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”).

Notes to financial statements Wells Fargo Advantage VT Omega Growth Fund 19

The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to net operating losses. At December 31, 2014, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Accumulated net investment loss	Accumulated net realized gains on investments
$270,876	$(270,876)

As of December 31, 2014, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

2015	2016	2017
$982,505	$2,303,740	$771,379

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution fees. Class specific expenses are charged directly to that share class. Investment income, common expenses and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy

20 Wells Fargo Advantage VT Omega Growth Fund Notes to financial statements

gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	23,201,742	$	0	$	0	$	23,201,742
Consumer staples		1,615,878		0		0		1,615,878
Energy		3,359,889		0		0		3,359,889
Financials		9,105,159		0		0		9,105,159
Health care		21,401,344		0		0		21,401,344
Industrials		12,564,447		0		0		12,564,447
Information technology		29,129,395		0		0		29,129,395
Materials		1,885,833		0		0		1,885,833
Telecommunication services		2,720,266		0		0		2,720,266
Short-term investments
Investment companies		789,414		1,839,824		0		2,629,238
Total assets	$	105,773,367	$	1,839,824	$	0	$	107,613,191

Transfers in and transfers out are recognized at the end of the reporting period. At December 31, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.55% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.30% as the average daily net assets of the Fund increase.

Administration 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

Notes to financial statements Wells Fargo Advantage VT Omega Growth Fund 21

agents, omnibus account servicers and record-keepers, Funds Management is entitled to receive from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class 1 shares and 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2014 were $100,655,911 and $123,844,278, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement, whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $180 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2014 and December 31, 2013 were as follows:

	Year ended December 31
	2014	2013
Ordinary income	$3,838,065	$291,874
Long-term capital gain	18,726,000	9,595,823

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains	Capital loss carryforward
$819,441	$15,947,530	$22,743,246	$(4,057,624)

8. CONCENTRATION RISK

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

9. INDEMNIFICATION

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

22 Wells Fargo Advantage VT Omega Growth Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Omega Growth Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Omega Growth Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

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

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 13.93% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2014.

Pursuant to Section 852 of the Internal Revenue Code, $18,726,000 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2014.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1.  Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2.  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

26 Wells Fargo Advantage VT Omega Growth Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230415 02-15

AVT5/AR151 12-14

Wells Fargo Advantage VT Opportunity Fund^SM

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	19
Report of independent registered public accounting firm	24
Other information	25
List of abbreviations	28

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Opportunity Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Opportunity Fund for the 12-month period that ended December 31, 2014. Improving U.S. economic data and strong corporate earnings helped drive positive returns for U.S. stocks overall in 2014. In contrast, many economies and markets elsewhere in the world faced significant ongoing challenges during the period.

2014’s fitful start gave way to a rally that carried through the second quarter of 2014.

Following a difficult first quarter for the U.S. economy—when unusually harsh weather kept consumers at home, disrupted business activities, and ultimately drove a 2.1% contraction in real gross domestic product (GDP)—the second quarter of 2014 brought warmer temperatures, and the U.S. economy picked up steam. Investors were heartened by encouraging economic data, driving stocks higher. In Europe, signs of economic improvement faded when GDP stagnated during the second quarter. Although select peripheral countries, such as Spain and Portugal, provided bright spots, some of Europe’s larger economies were pressured by weak economic growth and potential deflation. European stock returns generally were positive but lackluster.

U.S. Federal Reserve (Fed) officials continued winding down their bond-buying program during the second quarter, leaving it on pace to end in 2014. They also revisited the question of when to begin raising short-term interest rates from near zero and released new projections showing rates rising more than previously expected in 2015 and 2016; however, they slightly reduced their outlook for rates over the longer term. The markets took this information in stride, with both U.S. stocks and bonds rallying.

Positive U.S. economic data—but increased tensions abroad—led to heightened volatility in the third quarter of 2014.

The third quarter brought a series of stock market surges that were interrupted by bouts of volatility as interest-rate concerns in the U.S. and increased tensions abroad triggered heightened investor uncertainty. In July, an escalating Russia/Ukraine situation and a growing perception that the Fed would raise short-term interest rates sooner than expected caused investors to pull back toward month-end; as a result, the S&P 500 Index¹ dropped into negative territory for its overall monthly return. However, August brought a bounce-back—the S&P 500 Index delivered its largest monthly gain since February 2014 on a string of positive economic news, led by an upwardly revised 4.2% estimate of second-quarter 2014 GDP growth. Then, in September, stock market volatility rose as positive economic data became overshadowed at times by growing discomfort over escalating tensions in Ukraine and the Middle East. Signs of slowing growth in Europe and China also concerned investors. Ultimately, U.S. stocks ended the third quarter up slightly overall, buoyed largely by another upward revision of second-quarter GDP growth (to 4.6%). Strong corporate earnings also contributed to market gains, with a large number of U.S. companies exceeding consensus estimates for both revenues and earnings per share.

^1.  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Opportunity Fund 3

The fourth quarter of 2014 brought continued improvement in the U.S.; international economies remained challenged.

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014. The last several, in December, were spurred by investor optimism following Fed Chair Janet Yellen’s comment that the Fed would be patient in its timing of an interest-rate increase. U.S. stocks also were boosted by positive data reflecting an economy continuing to strengthen. November’s 5.8% unemployment rate was down from 7.0% a year earlier, and the number of jobs being added continued to expand, keeping U.S. employers on pace to hire nearly three million workers during 2014—the most since 1999. In addition, the U.S. economy’s third-quarter growth rate was revised upward during the quarter, to 5.0%—its fastest pace in 11 years. Meanwhile, U.S. companies continued to report strong earnings during the quarter, providing an additional catalyst for stocks. The steadily brightening U.S. economy energized consumers, who were further buoyed by much lower prices at the gasoline pump. During the fourth quarter, gasoline prices fell to their lowest levels in five years, according to the American Automobile Association.

As the U.S. churned forward, major economies elsewhere in the world faced significant ongoing challenges. Growth in China continued to slow, Japan remained in a recession that had begun the previous quarter, and Russia’s economy contracted for the first time since 2009 as the country struggled under the weight of slumping oil prices, international sanctions, and massive outflows of capital. In the eurozone, growth remained sluggish as member countries faced an environment of low demand, high unemployment, and weak business investment.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014.

We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

4 Wells Fargo Advantage VT Opportunity Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Ann M. Miletti

Average annual total returns¹ (%) as of December 31, 2014

								Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		Gross		Net3
Class 1	8-26-2011		10.70		14.47		8.43		0.85		0.76
Class 2	5-8-1992		10.42		14.28		8.34		1.10		1.01
Russell 3000® Index4	–		12.56		15.63		7.94		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

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

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Opportunity Fund 5

Growth of $10,000 investment⁵ as of December 31, 2014

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

^2.  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

^3.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.75% for Class 1 and 1.00% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

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

^5.  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^6.  The ten largest equity holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^7.  Sector distribution is subject to change and is calculated based on the total long-term investments of the Fund.

* This security was not held in the Fund at the end of the reporting period.

6 Wells Fargo Advantage VT Opportunity Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 3000 Index, for the 12-month period that ended December 31, 2014.

n Stock selection in the energy and materials sectors detracted from performance. Also, a moderate allocation to cash and lack of exposure to utilities hindered relative results.

n Stock selection added value in the consumer staples and industrials sectors. Lack of exposure to the telecommunication services sector also was beneficial.

The broad U.S. stock market, as represented by the Russell 3000 Index, generally rose at a moderate rate over the 12-month reporting period. Stocks benefited from a variety of factors, including continuation of quantitative easing and maintenance of very low interest rates by the U.S. Federal Reserve, growth in gross domestic product, improving employment data, and generally improving economic conditions. In these favorable circumstances, investors continued to seek the potentially higher returns of stocks. Different from the previous 12-month reporting period that ended December 31, 2013, during which many companies experienced increasing valuations due to multiple expansion, the most recent reporting period saw companies benefiting from improving fundamentals with growth in revenues and earnings. In this environment, and with the expectation of tighter U.S. monetary policy to come, we continued to look for well-positioned companies—those with good business models, strong management teams, and healthy cash flows—trading at attractive discounts relative to their private market valuations (PMVs). The PMV represents the expected price an investor would pay for the entire company as a stand-alone private entity.

Stock selection in several sectors held back investment results.

For the Fund, 2014’s biggest story was the falling price of crude oil and its negative impact on the energy sector. After a slight run-up during the first half of the year, crude oil’s price fell dramatically during the second half of 2014, affecting almost every business in the energy sector in some way. Companies providing services and products in this sector were hit hard, including Halliburton Company, Weatherford International Limited, and Cameron International Corporation. Oil and gas exploration and production companies were not spared, including Denbury Resources Incorporated* and Range Resources Corporation.

In the materials sector, the Fund’s holdings in the containers and packaging industry were significant detractors from performance. Owens-Illinois Incorporated, a maker of glass containers and other packaging for beverages and pharmaceuticals, was affected by overcapacity in Europe and declined. Lack of exposure to the utilities sector and a modest allocation to cash also detracted. Utilities, which are not a good fit for our investment process, rose during the period due to the low-interest-rate environment. The Fund’s allocation to cash was transitional and not reflective of our view of the market.

Our discipline allows us to be patient with stocks that currently may be out of favor in the market. As 2014 began, our expectations for the year included an improving economic environment and stock values driven primarily by increasing earnings and revenues rather than by multiple expansion; these expectations were realized during the course of 2014.

Ten largest equity holdings6 (%) as of December 31, 2014
Apollo Group Incorporated	1.81
ACE Limited	1.71
Red Hat Incorporated	1.63
PNC Financial Services Group Incorporated	1.60
American International Group Incorporated	1.60
Check Point Software Technologies Limited	1.58
Bio-Rad Laboratories Incorporated Class A	1.54
Johnson Controls Incorporated	1.54
Target Corporation	1.53
Thermo Fisher Scientific Incorporated	1.50

Fund performance benefited from stock selection in consumer staples and industrials.

Increased consumer cash flow due to lower energy and food costs, higher income levels, and lower financial obligations helped the consumer staples sector as a whole. The Kroger Company, which operates retail food and drug stores, rose significantly. Mead Johnson Nutrition Company, which produces infant nutrition products, also contributed positively; the firm benefited from a growing middle class in emerging countries.

In the industrials sector, steady-yet-modest economic growth supported a number of the Fund’s holdings, such as Republic Services Incorporated, a provider of

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Opportunity Fund 7

nonhazardous waste management and recycling services. Also, the airline industry performed well, especially Delta Air Lines Incorporated*, and United Continental Holdings Incorporated. Capacity discipline, aided by enhanced efficiencies and industry consolidation, led to greater profitability in the airline industry. High valuations and changing fundamentals kept us out of the telecommunication services sector for the period, which proved to be beneficial.

Sector distribution⁷ as of December 31, 2014

Our disciplined investment process enables us to be keenly aware of both price and enterprise value on a company-by-company basis. Through our proprietary database of company acquisitions across industries, sectors, and time frames, we are able to maintain a steady foundation for assessing the PMVs of companies versus the public stock prices for those same companies. Our task is to exploit discrepancies between those two numbers for the benefit of Fund shareholders by purchasing stocks when we believe they are selling at a discount to their PMVs. An improving economy and

favorable investor sentiment helped lift stock prices broadly and keep multiples high over the 12-month period. With the possibility of rising interest rates in the coming year, we believe stock investors will be more discerning going forward. In our view, companies with attractive stock prices relative to their PMVs should be brought to the forefront by our process, which should allow us to add value through our unique bottom-up research.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Opportunity Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	1,023.52	$	3.83		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42	$	3.82		0.75	%
Class 2
Actual	$	1,000.00	$	1,022.15	$	5.10		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.16	$	5.09		1.00	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Opportunity Fund 9

Security name	Shares		Value
Common Stocks: 97.93%
Consumer Discretionary: 18.09%
Auto Components: 2.88%
Dana Holding Corporation		150,070	$	3,262,522
Johnson Controls Incorporated		77,649		3,753,553
				7,016,075
Diversified Consumer Services: 1.81%
Apollo Group Incorporated †		129,531		4,418,302
Hotels, Restaurants & Leisure: 1.33%
Carnival Corporation		71,259		3,230,170
Household Durables: 1.26%
Harman International Industries Incorporated		28,847		3,078,263
Media: 4.29%
Comcast Corporation Class A «		60,472		3,481,071
Discovery Communications Incorporated Class C †		75,951		2,561,068
Omnicom Group Incorporated		37,017		2,867,707
Time Warner Cable Incorporated		10,059		1,529,572
				10,439,418
Multiline Retail: 4.22%
Macy’s Incorporated		54,009		3,551,092
Nordstrom Incorporated		37,937		3,011,818
Target Corporation		48,943		3,715,263
				10,278,173
Specialty Retail: 2.30%
Chico’s FAS Incorporated		167,232		2,710,831
Dick’s Sporting Goods Incorporated		57,942		2,876,820
				5,587,651
Consumer Staples: 5.42%
Food & Staples Retailing: 1.23%
The Kroger Company		46,762		3,002,588
Food Products: 2.36%
General Mills Incorporated		49,189		2,623,249
Mead Johnson Nutrition Company		31,073		3,124,079
				5,747,328
Household Products: 1.04%
Church & Dwight Company Incorporated		31,959		2,518,689
Personal Products: 0.79%
Estee Lauder Companies Incorporated Class A		25,349		1,931,594

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

10 Wells Fargo Advantage VT Opportunity Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Energy: 7.29%
Energy Equipment & Services: 2.82%
Cameron International Corporation †		45,045	$	2,249,998
Halliburton Company		61,058		2,401,411
Weatherford International plc †		192,976		2,209,575
				6,860,984
Oil, Gas & Consumable Fuels: 4.47%
Cimarex Energy Company		25,807		2,735,542
EOG Resources Incorporated		29,164		2,685,129
Newfield Exploration Company †		98,805		2,679,592
Range Resources Corporation		52,183		2,789,181
				10,889,444
Financials: 14.46%
Banks: 4.03%
Fifth Third Bancorp		114,624		2,335,464
PNC Financial Services Group Incorporated		42,828		3,907,198
Regions Financial Corporation		338,811		3,577,844
				9,820,506
Capital Markets: 2.70%
Invesco Limited		84,043		3,321,379
TD Ameritrade Holding Corporation		90,760		3,247,393
				6,568,772
Insurance: 6.51%
ACE Limited		36,328		4,173,361
American International Group Incorporated		69,463		3,890,623
First American Financial Corporation		85,708		2,905,501
RenaissanceRe Holdings Limited «		22,304		2,168,395
The Progressive Corporation		100,518		2,712,981
				15,850,861
REITs: 1.22%
American Tower Corporation		30,054		2,970,838
Health Care: 13.68%
Health Care Equipment & Supplies: 4.42%
C.R. Bard Incorporated		4,363		726,963
Covidien plc		34,722		3,551,366
Medtronic Incorporated		41,481		2,994,928
Zimmer Holdings Incorporated		30,750		3,487,665
				10,760,922
Health Care Providers & Services: 0.70%
Patterson Companies Incorporated		35,376		1,701,586

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Opportunity Fund 11

Security name	Shares		Value
Life Sciences Tools & Services: 5.22%
Agilent Technologies Incorporated		72,914	$	2,985,099
Bio-Rad Laboratories Incorporated Class A †		31,155		3,756,047
Covance Incorporated †		22,350		2,320,824
Thermo Fisher Scientific Incorporated		29,236		3,662,978
				12,724,948
Pharmaceuticals: 3.34%
Merck & Company Incorporated		33,795		1,919,218
Novartis AG ADR		36,593		3,390,707
Zoetis Incorporated		65,715		2,827,716
				8,137,641
Industrials: 10.33%
Aerospace & Defense: 0.75%
B/E Aerospace Incorporated		31,546		1,830,299
Airlines: 1.19%
United Continental Holdings Incorporated †		43,285		2,895,334
Commercial Services & Supplies: 2.55%
Republic Services Incorporated		82,466		3,319,257
Tyco International plc		65,653		2,879,541
				6,198,798
Electrical Equipment: 2.70%
Babcock & Wilcox Company		109,942		3,331,243
Regal-Beloit Corporation		43,298		3,256,010
				6,587,253
Road & Rail: 3.14%
Canadian Pacific Railway Limited		9,844		1,896,840
Hertz Global Holdings Incorporated †		123,273		3,074,429
J.B. Hunt Transport Services Incorporated		31,784		2,677,802
				7,649,071
Information Technology: 21.53%
Communications Equipment: 1.28%
Riverbed Technology Incorporated †		152,116		3,104,688
Electronic Equipment, Instruments & Components: 1.84%
Amphenol Corporation Class A		60,521		3,256,635
Keysight Technologies Incorporated †		36,457		1,231,153
				4,487,788
Internet Software & Services: 1.40%
Google Incorporated Class C †		6,465		3,403,176

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

12 Wells Fargo Advantage VT Opportunity Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
IT Services: 2.66%
Global Payments Incorporated		39,598	$	3,196,747
Teradata Corporation †		75,137		3,281,984
				6,478,731
Semiconductors & Semiconductor Equipment: 4.95%
Altera Corporation		89,210		3,295,417
ARM Holdings plc		145,965		2,242,370
Avago Technologies Limited		29,682		2,985,712
ON Semiconductor Corporation †		348,863		3,533,982
				12,057,481
Software: 6.74%
Autodesk Incorporated †		46,943		2,819,397
Check Point Software Technologies Limited †		49,061		3,854,723
Citrix Systems Incorporated †		57,224		3,650,891
Red Hat Incorporated †		57,372		3,966,700
Salesforce.com Incorporated †		35,865		2,127,153
				16,418,864
Technology Hardware, Storage & Peripherals: 2.66%
Apple Incorporated		28,138		3,105,872
NetApp Incorporated		81,452		3,376,185
				6,482,057
Materials: 7.13%
Chemicals: 3.93%
Cytec Industries Incorporated		66,829		3,085,495
Huntsman Corporation		133,029		3,030,401
Praxair Incorporated		26,639		3,451,349
				9,567,245
Containers & Packaging: 2.38%
Crown Holdings Incorporated †		60,900		3,099,810
Owens-Illinois Incorporated †		99,616		2,688,636
				5,788,446
Metals & Mining: 0.82%
Royal Gold Incorporated		31,899		2,000,067
Total Common Stocks (Cost $181,535,910)				238,484,051

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Opportunity Fund 13

Security name	Yield			Shares		Value
Short-Term Investments: 3.28%
Investment Companies: 3.28%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.14	%		4,414,550	$	4,414,550
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08			3,578,448		3,578,448
Total Short-Term Investments (Cost $7,992,998)							7,992,998

Total investments in securities (Cost $189,528,908) *	101.21	%		246,477,049
Other assets and liabilities, net	(1.21	)		(2,952,469	)
Total net assets	100.00	%	$	243,524,580

† Non-income-earning security

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $189,698,399 and unrealized gains (losses) consists of:

Gross unrealized gains	$	61,746,871
Gross unrealized losses		(4,968,221	)
Net unrealized gains	$	56,778,650

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

14 Wells Fargo Advantage VT Opportunity Fund Statement of assets and liabilities—December 31, 2014

Assets
Investments
In unaffiliated securities (including $4,256,987 of securities loaned), at value (cost $181,535,910)	$	238,484,051
In affiliated securities, at value (cost $7,992,998)		7,992,998
Total investments, at value (cost $189,528,908)		246,477,049
Cash		3,277
Receivable for investments sold		1,835,909
Receivable for Fund shares sold		90,747
Receivable for dividends		235,977
Receivable for securities lending income		434
Prepaid expenses and other assets		4,162
Total assets		248,647,555
Liabilities
Payable for Fund shares redeemed		456,702
Payable upon receipt of securities loaned		4,414,550
Advisory fee payable		124,989
Distribution fee payable		44,360
Administration fees payable		27,882
Accrued expenses and other liabilities		54,492
Total liabilities		5,122,975
Total net assets	$	243,524,580
NET ASSETS CONSIST OF
Paid-in capital	$	163,581,997
Undistributed net investment income		390,820
Accumulated net realized gains on investments		22,603,619
Net unrealized gains on investments		56,948,144
Total net assets	$	243,524,580
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	42,177,950
Shares outstanding – Class 11		1,463,596
Net asset value per share – Class 1		$28.82
Net assets – Class 2	$	201,346,630
Shares outstanding – Class 21		6,976,447
Net asset value per share – Class 2		$28.86

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

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

Statement of operations—year ended December 31, 2014 Wells Fargo Advantage VT Opportunity Fund 15

Investment income
Dividends (net of foreign withholding taxes of $5,605)	$	2,772,747
Securities lending income, net		10,307
Income from affiliated securities		4,729
Total investment income		2,787,783
Expenses
Advisory fee		1,621,913
Administration fees
Fund level		124,763
Class 1		34,366
Class 2		165,254
Distribution fee
Class 2		516,420
Custody and accounting fees		23,399
Professional fees		47,195
Shareholder report expenses		6,932
Trustees’ fees and expenses		12,012
Other fees and expenses		6,820
Total expenses		2,559,074
Less: Fee waivers and/or expense reimbursements		(171,216	)
Net expenses		2,387,858
Net investment income		399,925
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		36,441,368
Net change in unrealized gains (losses) on investments		(12,075,043	)
Net realized and unrealized gains (losses) on investments		24,366,325
Net increase in net assets resulting from operations	$	24,766,250

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

16 Wells Fargo Advantage VT Opportunity Fund Statement of changes in net assets

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment income				$	399,925					$	280,132
Net realized gains on investments					36,441,368						18,919,587
Net change in unrealized gains (losses) on investments					(12,075,043	)					45,915,119
Net increase in net assets resulting from operations					24,766,250						65,114,838
Distributions to shareholders from
Net investment income
Class 1					(127,115	)					(190,708	)
Class 2					(116,647	)					(396,735	)
Total distributions to shareholders					(243,762	)					(587,443	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		53,369			1,479,957			29,750			698,335
Class 2		342,554			9,419,119			306,606			6,934,870
					10,899,076						7,633,205
Reinvestment of distributions
Class 1		4,533			127,115			8,108			190,708
Class 2		4,150			116,647			16,818			396,735
					243,762						587,443
Payment for shares redeemed
Class 1		(304,044	)		(8,294,961	)		(373,971	)		(8,585,638	)
Class 2		(1,442,152	)		(39,558,767	)		(1,643,579	)		(37,712,206	)
					(47,853,728	)					(46,297,844	)
Net decrease in net assets resulting from capital share transactions					(36,710,890	)					(38,077,196	)
Total increase (decrease) in net assets					(12,188,402	)					26,450,199
Net assets
Beginning of period					255,712,982						229,262,783
End of period				$	243,524,580					$	255,712,982
Undistributed net investment income				$	390,820					$	181,809

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

Financial highlights Wells Fargo Advantage VT Opportunity Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2014			2013			2012			20111
Net asset value, beginning of period		$26.11			$20.02			$17.40			$16.52
Net investment income		0.10			0.08			0.10			0.04
Net realized and unrealized gains (losses) on investments		2.69			6.11			2.64			0.84
Total from investment operations		2.79			6.19			2.74			0.88
Distributions to shareholders from
Net investment income		(0.08	)		(0.10	)		(0.11	)		0.00
Net realized gains		0.00			0.00			(0.01	)		0.00
Total distributions to shareholders		(0.08	)		(0.10	)		(0.12	)		0.00
Net asset value, end of period		$28.82			$26.11			$20.02			$17.40
Total return2		10.70	%		30.99	%		15.80	%		5.33	%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.84	%		0.86	%		0.83	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		0.37	%		0.32	%		0.46	%		0.61	%
Supplemental data
Portfolio turnover rate		33	%		26	%		36	%		35	%
Net assets, end of period (000s omitted)		$42,178			$44,636			$40,950			$42,116

^1.  For the period from August 26, 2011 (commencement of class operations) to December 31, 2011

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

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

18 Wells Fargo Advantage VT Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$26.15			$20.05			$17.38			$18.42			$15.01
Net investment income		0.04			0.02			0.05			0.03			0.02
Net realized and unrealized gains (losses) on investments		2.69			6.13			2.65			(1.04	)		3.51
Total from investment operations		2.73			6.15			2.70			(1.01	)		3.53
Distributions to shareholders from
Net investment income		(0.02	)		(0.05	)		(0.02	)		(0.03	)		(0.12	)
Net realized gains		0.00			0.00			(0.01	)		0.00			0.00
Total distributions to shareholders		(0.02	)		(0.05	)		(0.03	)		(0.03	)		(0.12	)
Net asset value, end of period		$28.86			$26.15			$20.05			$17.38			$18.42
Total return		10.42	%		30.68	%		15.52	%		(5.52	)%		23.76	%
Ratios to average net assets (annualized)
Gross expenses		1.07	%		1.09	%		1.10	%		1.07	%		1.18	%
Net expenses		1.00	%		1.00	%		1.00	%		1.04	%		1.07	%
Net investment income		0.12	%		0.07	%		0.21	%		0.18	%		0.08	%
Supplemental data
Portfolio turnover rate		33	%		26	%		36	%		35	%		40	%
Net assets, end of period (000s omitted)		$201,347			$211,077			$188,313			$201,535			$168,307

^1.  After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

Notes to financial statements Wells Fargo Advantage VT Opportunity Fund 19

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Opportunity Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”).

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On December 31, 2014 such fair value pricing was used in pricing foreign securities.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

20 Wells Fargo Advantage VT Opportunity Fund Notes to financial statements

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Security loans

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

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

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the

Notes to financial statements Wells Fargo Advantage VT Opportunity Fund 21

Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At December 31, 2014, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized gains on investments
$52,848	$(52,848)

As of December 31, 2014, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $721,350 with $360,675 expiring in 2015 and $360,675 expiring in 2016.

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution fees. Class specific expenses are charged directly to that share class. Investment income, common expenses and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	44,048,052	$	0	$	0	$	44,048,052
Consumer staples		13,200,199		0		0		13,200,199
Energy		17,750,428		0		0		17,750,428
Financials		35,210,977		0		0		35,210,977
Health care		33,325,097		0		0		33,325,097
Industrials		25,160,755		0		0		25,160,755
Information technology		50,190,415		2,242,370		0		52,432,785
Materials		17,355,758		0		0		17,355,758
Short-term investments
Investment companies		3,578,448		4,414,550		0		7,992,998
Total assets	$	239,820,129	$	6,656,920	$	0	$	246,477,049

22 Wells Fargo Advantage VT Opportunity Fund Notes to financial statements

The Fund recognizes transfers between levels at the end of the reporting period. At December 31, 2014, fair value pricing was used in pricing certain foreign securities and securities valued at $2,242,370 were transferred from Level 1 to Level 2 within the fair value hierarchy. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.65% and declining to 0.55% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.65% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.30% as the average daily net assets of the Fund increase.

Administration 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 from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee of 0.08% which is calculated based on the average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class 1 shares and 1.00% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2014 were $80,801,100 and $113,483,629, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement, whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $380 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

Notes to financial statements Wells Fargo Advantage VT Opportunity Fund 23

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $243,762 and $587,443 of ordinary income for the years ended December 31, 2014 and December 31, 2013, respectively.

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains	Capital loss carryforward
$398,848	$23,494,462	$56,778,650	$(721,350)

8. INDEMNIFICATION

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

24 Wells Fargo Advantage VT Opportunity Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Opportunity Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Opportunity Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

Other information (unaudited) Wells Fargo Advantage VT Opportunity Fund 25

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 100% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2014.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

26 Wells Fargo Advantage VT Opportunity Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Advantage VT Opportunity Fund 27

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1.  Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2.  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

28 Wells Fargo Advantage VT Opportunity Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230416 02-15

AVT6/AR152 12-14

Wells Fargo Advantage

VT Small Cap Growth Fund

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	19
Report of independent registered public accounting firm	23
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Small Cap Growth Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Small Cap Growth Fund for the 12-month period that ended December 31, 2014. Improving U.S. economic data and strong corporate earnings helped drive positive returns for U.S. stocks overall in 2014. In contrast, many economies and markets elsewhere in the world faced significant ongoing challenges during the period.

2014’s fitful start gave way to a rally that carried through the second quarter of 2014.

Following a difficult first quarter for the U.S. economy—when unusually harsh weather kept consumers at home, disrupted business activities, and ultimately drove a 2.1% contraction in real gross domestic product (GDP)—the second quarter of 2014 brought warmer temperatures, and the U.S. economy picked up steam. Investors were heartened by encouraging economic data, driving stocks higher. In Europe, signs of economic improvement faded when GDP stagnated during the second quarter. Although select peripheral countries, such as Spain and Portugal, provided bright spots, some of Europe’s larger economies were pressured by weak economic growth and potential deflation. European stock returns generally were positive but lackluster.

U.S. Federal Reserve (Fed) officials continued winding down their bond-buying program during the second quarter, leaving it on pace to end in 2014. They also revisited the question of when to begin raising short-term interest rates from near zero and released new projections showing rates rising more than previously expected in 2015 and 2016; however, they slightly reduced their projections for rates over the longer term. The markets took this information in stride, with both U.S. stocks and bonds rallying.

Positive U.S. economic data—but increased tensions abroad—led to heightened volatility in the third quarter of 2014.

The third quarter brought a series of stock market surges that were interrupted by bouts of volatility as interest-rate concerns in the U.S. and increased tensions abroad triggered heightened investor uncertainty. In July, an escalating Russia/Ukraine situation and a growing perception that the Fed would raise short-term interest rates sooner than expected caused investors to pull back toward month-end; as a result, the S&P 500 Index¹ dropped into negative territory for its overall monthly return. However, August brought a bounce-back—the S&P 500 Index delivered its largest monthly gain since February 2014 on a string of positive economic news, led by an upwardly revised 4.2% estimate of second-quarter 2014 GDP growth. Then, in September, stock market volatility rose as positive economic data became overshadowed at times by growing discomfort over escalating tensions in Ukraine and the Middle East. Signs of slowing growth in Europe and China also concerned investors. Ultimately, U.S. stocks ended the third quarter up slightly overall, buoyed largely by another upward revision of second-quarter GDP growth (to 4.6%). Strong corporate earnings also contributed to market gains, with a large number of U.S. companies exceeding consensus estimates for both revenues and earnings per share.

^1.  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Small Cap Growth Fund 3

The fourth quarter of 2014 brought continued improvement in the U.S.; international economies remained challenged.

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014. The last several, in December, were spurred by investor optimism following Fed Chair Janet Yellen’s comment that the Fed would be patient in its timing of an interest-rate increase. U.S. stocks also were boosted by positive data reflecting an economy continuing to strengthen. November’s 5.8% unemployment rate was down from 7.0% a year earlier, and the number of jobs being added continued to expand, keeping U.S. employers on pace to hire nearly three million workers during 2014—the most since 1999. In addition, the U.S. economy’s third-quarter growth rate was revised upward during the quarter, to 5.0%—its fastest pace in 11 years. Meanwhile, U.S. companies continued to report strong earnings during the quarter, providing an additional catalyst for stocks. The steadily brightening U.S. economy energized consumers, who were further buoyed by much lower prices at the gasoline pump. During the fourth quarter, gasoline prices fell to their lowest levels in five years, according to the American Automobile Association.

As the U.S. churned forward, major economies elsewhere in the world faced significant ongoing challenges. Growth in China continued to slow, Japan remained in a recession that had begun the previous quarter, and Russia’s economy contracted for the first time since 2009 as the country struggled under the weight of slumping oil prices, international sanctions, and massive outflows of capital. In the eurozone, growth remained sluggish as member countries faced an environment of low demand, high unemployment, and weak business investment.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014.

We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

The Fund is currently closed to new investors¹.

Investment objective

The Fund seeks long-term capital appreciation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Joseph M. Eberhardy, CFA, CFP

Thomas C. Ognar, CFA

Bruce C. Olson, CFA

Average annual total returns² (%) as of December 31, 2014

									Expense ratios3 (%)
	Inception date	1 year			5 year		10 year		Gross		Net4
Class 1	7-16-2010		(1.67	)		14.21		9.94		0.93		0.93
Class 2	5-1-1995		(1.88	)		13.97		9.82		1.18		1.18
Russell 2000® Growth Index5	–		5.60			16.80		8.54		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.

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

Please see footnotes on page 5.

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

Growth of $10,000 investment⁶ as of December 31, 2014

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

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

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

^4.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.95% for Class 1 and 1.20% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

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

^6.  The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 2000 Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^7.  The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

^8.  The ten largest equity holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^9.  Sector distribution is subject to change and is calculated based on the total long-term investments of the Fund.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 2000 Growth Index, for the 12-month period that ended December 31, 2014.

n Within the Fund, stock selection in the financials, industrials, and information technology (IT) sectors constrained relative performance.

n Stock selection in the energy sector contributed positively to relative performance; an overweight to the health care sector also aided relative returns.

Small-cap growth stocks underperformed large-cap growth stocks in 2014.

Following an unprecedented rally in 2013, small-cap growth stocks ended 2014 with a return of 5.60% (as measured by the Russell 2000 Growth Index), lagging large-cap growth stocks, which returned 13.05% (as measured by the Russell 1000^® Growth Index⁷). This difference in market-cap performance was a reversal from 2013, during which small-cap growth stocks outperformed large-cap growth stocks. In 2014, many investors tended to shift out of small-cap growth into more defensive mega-cap stocks in search of higher dividend yields as an alternative to the very low interest rates that were available from fixed-income investments.

Ten largest equity holdings8 (%) as of December 31, 2014
Acadia Healthcare Company Incorporated	3.27
Proofpoint Incorporated	3.26
MarketAxess Holdings Incorporated	3.11
Envestnet Incorporated	2.99
Akorn Incorporated	2.66
Fiesta Restaurant Group Incorporated	2.59
ExamWorks Group Incorporated	2.57
SPS Commerce Incorporated	2.53
Spectranetics Corporation	2.36
DexCom Incorporated	2.22

A temporary investor shift away from faster-growing companies challenged Fund performance.

Much of the Fund’s underperformance for 2014 overall occurred during the two-month period from early March through early May, when faster-growing companies significantly underperformed slower-growing companies. Despite displaying strong fundamentals, many of the Fund’s faster-growing holdings were unrewarded by the market during this period. This brief rotation away from rapidly growing companies was influenced by a variety of concerns, such as the potential for a U.S. interest-rate increase earlier than many investors had anticipated.

Weakness from holdings in the industrials, IT, and financials sectors detracted from performance.

Underperformance in the industrials sector was partly attributable to weakness from companies negatively affected by the decline in oil prices. DXP Enterprises Incorporated, a provider of industrial pumping products, was a key detractor due to fundamental weakness early in 2014 and investor fears that the firm’s growth potential would suffer due to lower oil prices. We substantially reduced the position at various points in the last few months of 2014 given decreased visibility into DXP’s sustainable growth rate. Within the IT sector, our stock selection results in the internet software and services industry considerably constrained relative performance. Online vacation rental company HomeAway Incorporated declined more than 27% because the market was concerned about competitive threats the firm faced and a slowdown in pay-per-book trends in Europe. However, we believe HomeAway is well positioned to drive growth; the firm has continued to increase user traffic to its websites, which in turn has prompted property owners and managers to look for additional distribution channels to advertise their properties. The underperformance in financials was mainly attributable to Financial Engines Incorporated; investors feared that increased competition could have an adverse effect on pricing power. We believe the firm can continue to gain market share through multiple growth drivers.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Small Cap Growth Fund 7

Sector distribution⁹ as of December 31, 2014

Strong results from the energy and health care sectors aided the Fund’s relative performance.

Within the energy sector, select exploration and production holdings, such as Diamondback Energy Incorporated, benefited from operational efficiencies and solid production growth from acreages in U.S. shale locations. As the valuation gap narrowed in the summer months, we trimmed many of the Fund’s energy holdings and redeployed the proceeds into other sectors. With crude-oil prices trading at low levels, we continued to take a judicious approach regarding the viability of oil-

related holdings at different pricing levels to fully understand the impact of lower prices on their operations. Outperformance in the health care sector was largely attributable to holdings in the pharmaceuticals and providers and services industries. For example, pharmaceuticals holding Akorn Incorporated benefited from investor recognition that the company’s large and expanding pipeline positioned Akorn as a niche player in ophthalmology, generic injectables, and liquids/semisolid products.

We are confident in the 2015 growth prospects for the companies held within the Fund.

Our research has indicated attractive relative valuations for many of the Fund’s holdings, which we believe could be rewarded should they have strong results going forward. As the Federal Reserve’s monetary policy becomes less accommodative and indications of interest-rate increases become evident, we believe investors will increasingly recognize the attractive valuations of faster-growing companies and reward them accordingly. We also believe that our investment style—seeking robust growth companies with sustainable business models that are underappreciated by other investors—positions us well to identify and invest in select high-growth opportunities. As always, we remain focused on bottom-up analysis and have not wavered from our discipline.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Small Cap Growth Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	1,043.16	$	4.79		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74		0.93	%
Class 2
Actual	$	1,000.00	$	1,042.56	$	6.08		1.18	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.26	$	6.01		1.18	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Small Cap Growth Fund 9

Security name	Shares		Value
Common Stocks: 99.08%
Consumer Discretionary: 12.93%
Auto Components: 2.51%
Gentherm Incorporated †		120,300	$	4,405,386
Motorcar Parts of America Incorporated †		64,333		2,000,113
				6,405,499
Diversified Consumer Services: 2.06%
Grand Canyon Education Incorporated †		86,600		4,040,756
LifeLock Incorporated †		65,600		1,214,256
				5,255,012
Hotels, Restaurants & Leisure: 4.12%
Fiesta Restaurant Group Incorporated †		108,676		6,607,501
Jack In the Box Incorporated		19,400		1,551,224
The Habit Restaurants Incorporated Class A †«		17,746		574,083
Zoe’s Kitchen Incorporated †«		59,253		1,772,257
				10,505,065
Internet & Catalog Retail: 0.15%
RetailMeNot Incorporated †«		26,463		386,889
Media: 1.07%
IMAX Corporation †		88,200		2,725,380
Specialty Retail: 1.50%
Boot Barn Holdings Incorporated †«		54,411		990,280
Five Below Incorporated †«		69,578		2,840,870
				3,831,150
Textiles, Apparel & Luxury Goods: 1.52%
G-III Apparel Group Limited †		38,400		3,878,784
Consumer Staples: 1.72%
Food & Staples Retailing: 1.37%
Diplomat Pharmacy Incorporated †		31,239		855,011
United Natural Foods Incorporated †		34,100		2,636,783
				3,491,794
Personal Products: 0.35%
IGI Laboratories Incorporated †«		99,800		878,240
Energy: 2.92%
Energy Equipment & Services: 0.21%
RigNet Incorporated †		12,970		532,159
Oil, Gas & Consumable Fuels: 2.71%
Bonanza Creek Energy Incorporated †		31,000		744,000
Diamondback Energy Incorporated †		30,287		1,810,557

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

10 Wells Fargo Advantage VT Small Cap Growth Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Oasis Petroleum Incorporated †		17,600	$	291,104
Parsley Energy Incorporated Class A †		104,220		1,663,351
RSP Permian Incorporated †«		95,851		2,409,694
				6,918,706
Financials: 7.51%
Capital Markets: 1.66%
Financial Engines Incorporated «		115,700		4,228,835
Consumer Finance: 2.74%
Encore Capital Group Incorporated †		33,700		1,496,280
Portfolio Recovery Associates Incorporated †		94,895		5,497,267
				6,993,547
Diversified Financial Services: 3.11%
MarketAxess Holdings Incorporated		110,478		7,922,377
Health Care: 31.82%
Biotechnology: 3.96%
Exact Sciences Corporation †«		36,162		992,285
Hyperion Therapeutics Incorporated †		51,620		1,238,880
Ligand Pharmaceuticals Incorporated †		14,700		782,187
NPS Pharmaceuticals Incorporated †		95,700		3,423,189
PTC Therapeutics Incorporated †		46,800		2,422,836
Repligen Corporation †		62,300		1,233,540
				10,092,917
Health Care Equipment & Supplies: 10.75%
Align Technology Incorporated †		21,600		1,207,656
Cardiovascular Systems Incorporated †		137,055		4,122,614
Cynosure Incorporated Class A †		120,677		3,308,963
DexCom Incorporated †		102,700		5,653,635
Endologix Incorporated †		134,345		2,054,135
Insulet Corporation †		37,100		1,708,826
NxStage Medical Incorporated †		85,820		1,538,753
Oxford Immunotec Global plc †«		59,603		811,793
Spectranetics Corporation †		174,313		6,027,744
Tandem Diabetes Care Incorporated †«		77,648		986,130
				27,420,249
Health Care Providers & Services: 10.28%
AAC Holdings Incorporated †«		51,968		1,606,851
Acadia Healthcare Company Incorporated †		136,200		8,336,802
Adeptus Health Incorporated Class A †		51,883		1,940,424
ExamWorks Group Incorporated †		157,856		6,565,231
HealthEquity Incorporated †		57,485		1,462,993
MWI Veterinary Supply Incorporated †		22,200		3,772,002
Team Health Holdings Incorporated †		44,100		2,537,073
				26,221,376

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Small Cap Growth Fund 11

Security name	Shares		Value
Health Care Technology: 0.74%
Medidata Solutions Incorporated †		39,500	$	1,886,125
Life Sciences Tools & Services: 1.14%
ICON plc ADR †		42,300		2,156,877
INC Research Holdings Incorporated Class A †		29,828		766,281
				2,923,158
Pharmaceuticals: 4.95%
Akorn Incorporated †«		187,115		6,773,563
ANI Pharmaceuticals Incorporated †«		45,500		2,565,745
BioDelivery Sciences International Incorporated †«		154,100		1,852,282
Intersect ENT Incorporated †		77,512		1,437,848
				12,629,438
Industrials: 9.17%
Aerospace & Defense: 0.85%
TASER International Incorporated †«		81,900		2,168,712
Building Products: 0.10%
Apogee Enterprises Incorporated		6,300		266,931
Electrical Equipment: 0.87%
Power Solutions International Incorporated †«		43,159		2,227,436
Machinery: 1.58%
Proto Labs Incorporated †«		22,055		1,481,214
The Middleby Corporation †		25,597		2,536,663
				4,017,877
Professional Services: 3.87%
Corporate Executive Board Company		17,241		1,250,490
On Assignment Incorporated †		130,381		4,327,345
Paylocity Holding Corporation †«		58,627		1,530,751
Wageworks Incorporated †		42,728		2,758,947
				9,867,533
Road & Rail: 1.12%
Saia Incorporated †		51,800		2,867,648
Trading Companies & Distributors: 0.78%
H&E Equipment Services Incorporated		70,500		1,980,345
Information Technology: 32.44%
Electronic Equipment, Instruments & Components: 1.61%
Cognex Corporation †		57,300		2,368,209
Universal Display Corporation †«		62,800		1,742,700
				4,110,909

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

12 Wells Fargo Advantage VT Small Cap Growth Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Internet Software & Services: 12.64%
Borderfree Incorporated †		153,293	$	1,373,505
ChannelAdvisor Corporation †«		89,900		1,940,042
DealerTrack Holdings Incorporated †		89,600		3,970,176
Demandware Incorporated †		83,800		4,821,852
Envestnet Incorporated †		155,441		7,638,371
HomeAway Incorporated †		131,954		3,929,590
Hortonworks Incorporated †«		18,518		499,986
New Relic Incorporated †		135		4,703
Q2 Holdings Incorporated †		85,668		1,613,985
SPS Commerce Incorporated †		113,771		6,442,852
				32,235,062
IT Services: 2.78%
iGATE Corporation †		45,500		1,796,340
InterXion Holding NV †		65,000		1,777,100
Maximus Incorporated		41,800		2,292,312
Wex Incorporated †		12,394		1,226,014
				7,091,766
Semiconductors & Semiconductor Equipment: 2.13%
Cavium Incorporated †		39,200		2,423,344
Veeco Instruments Incorporated †		86,500		3,017,120
				5,440,464
Software: 13.28%
Aspen Technology Incorporated †		18,400		644,368
Callidus Software Incorporated †		177,334		2,895,864
Fleetmatics Group plc †«		135,109		4,795,018
Guidewire Software Incorporated †		49,800		2,521,374
HubSpot Incorporated †		21,831		733,740
MobileIron Incorporated †«		184,035		1,832,989
Proofpoint Incorporated †		172,200		8,305,206
PROS Holdings Incorporated †		103,327		2,839,426
Synchronoss Technologies Incorporated †		86,858		3,635,876
Tyler Technologies Incorporated †		23,570		2,579,501
Ultimate Software Group Incorporated †		21,000		3,083,115
				33,866,477
Materials: 0.57%
Chemicals: 0.57%
Balchem Corporation		21,900		1,459,417
Total Common Stocks (Cost $198,637,480)				252,727,277

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Small Cap Growth Fund 13

Security name	Yield			Shares		Value
Short-Term Investments: 16.69%
Investment Companies: 16.69%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.14	%		39,803,361	$	39,803,361
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08			2,778,689		2,778,689
Total Short-Term Investments (Cost $42,582,050)							42,582,050

Total investments in securities (Cost $241,219,530) *	115.77	%		295,309,327
Other assets and liabilities, net	(15.77	)		(40,222,628	)
Total net assets	100.00	%	$	255,086,699

† Non-income-earning security

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $241,504,445 and unrealized gains (losses) consists of:

Gross unrealized gains	$	61,675,871
Gross unrealized losses		(7,870,989	)
Net unrealized gains	$	53,804,882

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

14 Wells Fargo Advantage VT Small Cap Growth Fund Statement of assets and liabilities—December 31, 2014

Assets
Investments
In unaffiliated securities (including $38,526,486 of securities loaned), at value (cost $198,637,480)	$	252,727,277
In affiliated securities, at value (cost $42,582,050)		42,582,050
Total investments, at value (cost $241,219,530)		295,309,327
Receivable for investments sold		255,633
Receivable for Fund shares sold		18,038
Receivable for dividends		14,159
Receivable for securities lending income		19,788
Prepaid expenses and other assets		3,799
Total assets		295,620,744
Liabilities
Payable for Fund shares redeemed		426,638
Payable upon receipt of securities loaned		39,803,361
Advisory fee payable		166,700
Distribution fee payable		49,407
Administration fees payable		28,895
Accrued expenses and other liabilities		59,044
Total liabilities		40,534,045
Total net assets	$	255,086,699
NET ASSETS CONSIST OF
Paid-in capital	$	168,648,538
Accumulated net investment loss		(1,297	)
Accumulated net realized gains on investments		32,349,661
Net unrealized gains on investments		54,089,797
Total net assets	$	255,086,699
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	28,120,625
Shares outstanding – Class 11		2,789,056
Net asset value per share – Class 1		$10.08
Net assets – Class 2	$	226,966,074
Shares outstanding – Class 21		22,791,528
Net asset value per share – Class 2		$9.96

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

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

Statement of operations— year ended December 31, 2014 Wells Fargo Advantage VT Small Cap Growth Fund 15

Investment income
Dividends	$	275,218
Securities lending income, net		187,756
Income from affiliated securities		2,732
Total investment income		465,706
Expenses
Advisory fee		1,940,797
Administration fees
Fund level		129,386
Class 1		23,764
Class 2		183,255
Distribution fee
Class 2		572,671
Custody and accounting fees		26,344
Professional fees		43,180
Shareholder report expenses		31,423
Trustees’ fees and expenses		12,936
Other fees and expenses		7,083
Total expenses		2,970,839
Net investment loss		(2,505,133	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		32,565,720
Net change in unrealized gains (losses) on investments		(37,633,951	)
Net realized and unrealized gains (losses) on investments		(5,068,231	)
Net decrease in net assets resulting from operations	$	(7,573,364	)

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

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

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment loss				$	(2,505,133	)				$	(2,299,660	)
Net realized gains on investments					32,565,720						27,485,921
Net change in unrealized gains (losses) on investments					(37,633,951	)					72,423,741
Net increase (decrease) in net assets resulting from operations					(7,573,364	)					97,610,002
Distributions to shareholders from
Net realized gains
Class 1					(2,634,770	)					(1,493,636	)
Class 2					(21,413,772	)					(10,871,521	)
Total distributions to shareholders					(24,048,542	)					(12,365,157	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		336,122			3,459,281			493,809			4,960,510
Class 2		2,516,342			25,941,725			3,159,002			31,346,859
					29,401,006						36,307,369
Reinvestment of distributions
Class 1		284,840			2,634,770			158,392			1,493,636
Class 2		2,340,303			21,413,772			1,161,487			10,871,521
					24,048,542						12,365,157
Payment for shares redeemed
Class 1		(939,801	)		(9,527,061	)		(785,107	)		(7,514,839	)
Class 2		(4,381,681	)		(42,879,278	)		(5,119,124	)		(48,649,167	)
					(52,406,339	)					(56,164,006	)
Net increase (decrease) in net assets resulting from capital share transactions					1,043,209						(7,491,480	)
Total increase (decrease) in net assets					(30,578,697	)					77,753,365
Net assets
Beginning of period					285,665,396						207,912,031
End of period				$	255,086,699					$	285,665,396
Accumulated net investment loss				$	(1,297	)				$	(1,447	)

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

Financial highlights Wells Fargo Advantage VT Small Cap Growth Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2014			2013			2012			2011			20101
Net asset value, beginning of period		$11.32			$7.93			$7.71			$8.06			$6.26
Net investment loss		(0.07	)		(0.07	)		(0.04	)		(0.06	)		(0.02	)
Net realized and unrealized gains (losses) on investments		(0.21	)		3.98			0.65			(0.29	)		1.82
Total from investment operations		(0.28	)		3.91			0.61			(0.35	)		1.80
Distributions to shareholders from
Net realized gains		(0.96	)		(0.52	)		(0.39	)		0.00			0.00
Net asset value, end of period		$10.08			$11.32			$7.93			$7.71			$8.06
Total return2		(1.67	)%		50.55	%		8.11	%		(4.34	)%		26.93	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.93	%		0.94	%		0.94	%		0.95	%
Net expenses		0.93	%		0.93	%		0.94	%		0.94	%		0.95	%
Net investment loss		(0.75	)%		(0.73	)%		(0.56	)%		(0.73	)%		(0.58	)%
Supplemental data
Portfolio turnover rate		54	%		67	%		65	%		118	%		71	%
Net assets, end of period (000s omitted)		$28,121			$35,192			$25,699			$29,351			$42,434

^1.  For the period from July 16, 2010 (commencement of class operations) to December 31, 2010

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

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

18 Wells Fargo Advantage VT Small Cap Growth Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$11.22			$7.88			$7.68			$8.05			$6.35
Net investment loss		(0.10	)		(0.09	)		(0.07	)		(0.09	)		(0.06	)
Net realized and unrealized gains (losses) on investments		(0.20	)		3.95			0.66			(0.28	)		1.76
Total from investment operations		(0.30	)		3.86			0.59			(0.37	)		1.70
Distributions to shareholders from
Net realized gains		(0.96	)		(0.52	)		(0.39	)		0.00			0.00
Net asset value, end of period		$9.96			$11.22			$7.88			$7.68			$8.05
Total return		(1.88	)%		50.23	%		7.87	%		(4.60	)%		26.77	%
Ratios to average net assets (annualized)
Gross expenses		1.18	%		1.18	%		1.19	%		1.20	%		1.22	%
Net expenses		1.18	%		1.18	%		1.19	%		1.19	%		1.20	%
Net investment loss		(1.00	)%		(0.98	)%		(0.81	)%		(0.98	)%		(0.82	)%
Supplemental data
Portfolio turnover rate		54	%		67	%		65	%		118	%		71	%
Net assets, end of period (000s omitted)		$226,966			$250,473			$182,213			$203,348			$247,246

^1.  After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

Notes to financial statements Wells Fargo Advantage VT Small Cap Growth Fund 19

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Small Cap Growth Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Security loans

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”).

20 Wells Fargo Advantage VT Small Cap Growth Fund Notes to financial statements

The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to net operating losses. At December 31, 2014, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss
$(2,505,283)	$2,505,283

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution fees. Class specific expenses are charged directly to that share class. Investment income, common expenses and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

Notes to financial statements Wells Fargo Advantage VT Small Cap Growth Fund 21

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	32,987,779	$	0	$	0	$	32,987,779
Consumer staples		4,370,034		0		0		4,370,034
Energy		7,450,865		0		0		7,450,865
Financials		19,144,759		0		0		19,144,759
Health care		81,173,263		0		0		81,173,263
Industrials		23,396,482		0		0		23,396,482
Information technology		82,744,678		0		0		82,744,678
Materials		1,459,417		0		0		1,459,417
Short-term investments
Investment companies		2,778,689		39,803,361		0		42,582,050
Total assets	$	255,505,966	$	39,803,361	$	0	$	295,309,327

Transfers in and transfers out are recognized at the end of the reporting period. At December 31, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.75% and declining to 0.60% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.75% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase.

Administration fees

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 from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee of 0.08% of the average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class

22 Wells Fargo Advantage VT Small Cap Growth Fund Notes to financial statements

specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.95% for Class 1 shares and 1.20% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2014 were $139,505,958 and $162,531,277, respectively.

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement, whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $506 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2014 and December 31, 2013 were as follows:

	Year ended December 31
	2014	2013
Ordinary income	$  3,203,905	$                0
Long-term capital gain	20,844,637	12,365,157

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains
$32,634,576	$53,804,882

8. CONCENTRATION RISK

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

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Advantage VT Small Cap Growth Fund 23

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Small Cap Growth Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Small Cap Growth Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

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

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 6.45% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2014.

Pursuant to Section 852 of the Internal Revenue Code, $20,844,637 was designated as long-term capital gain distributions for the fiscal year ended December 31, 2014.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management , LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1.  Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2.  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

List of abbreviations Wells Fargo Advantage VT Small Cap Growth Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230417 02-15

AVT7/AR153 12-14

Wells Fargo Advantage
VT Small Cap Value Fund

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	19
Report of independent registered public accounting firm	24
Other information	25
List of abbreviations	28

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Small Cap Value Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Small Cap Value Fund for the 12-month period that ended December 31, 2014. Improving U.S. economic data and strong corporate earnings helped drive positive returns for U.S. stocks overall in 2014. In contrast, many economies and markets elsewhere in the world faced significant ongoing challenges during the period.

2014’s fitful start gave way to a rally that carried through the second quarter of 2014.

Following a difficult first quarter for the U.S. economy—when unusually harsh weather kept consumers at home, disrupted business activities, and ultimately drove a 2.1% contraction in real gross domestic product (GDP)—the second quarter of 2014 brought warmer temperatures, and the U.S. economy picked up steam. Investors were heartened by encouraging economic data, driving stocks higher. In Europe, signs of economic improvement faded when GDP stagnated during the second quarter. Although select peripheral countries, such as Spain and Portugal, provided bright spots, some of Europe’s larger economies were pressured by weak economic growth and potential deflation. European stock returns generally were positive but lackluster.

U.S. Federal Reserve (Fed) officials continued winding down their bond-buying program during the second quarter, leaving it on pace to end in 2014. They also revisited the question of when to begin raising short-term interest rates from near zero and released new projections showing rates rising more than previously expected in 2015 and 2016; however, they slightly reduced their projections for rates over the longer term. The markets took this information in stride, with both U.S. stocks and bonds rallying.

Positive U.S. economic data—but increased tensions abroad—led to heightened volatility in the third quarter of 2014.

The third quarter brought a series of stock market surges that were interrupted by bouts of volatility as interest-rate concerns in the U.S. and increased tensions abroad triggered heightened investor uncertainty. In July, an escalating Russia/Ukraine situation and a growing perception that the Fed would raise short-term interest rates sooner than expected caused investors to pull back toward month-end; as a result, the S&P 500 Index¹ dropped into negative territory for its overall monthly return. However, August brought a bounce-back—the S&P 500 Index delivered its largest monthly gain since February 2014 on a string of positive economic news, led by an upwardly revised 4.2% estimate of second-quarter 2014 GDP growth. Then, in September, stock market volatility rose as positive economic data became overshadowed at times by growing discomfort over escalating tensions in Ukraine and the Middle East. Signs of slowing growth in Europe and China also concerned investors. Ultimately, U.S. stocks ended the third quarter up slightly overall, buoyed largely by another upward revision of second-quarter GDP growth (to 4.6%). Strong corporate earnings also contributed to market gains, with a large number of U.S. companies exceeding consensus estimates for both revenues and earnings per share.

^1.  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Small Cap Value Fund 3

The fourth quarter of 2014 brought continued improvement in the U.S.; international economies remained challenged.

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014. The last several, in December, were spurred by investor optimism following Fed Chair Janet Yellen’s comment that the Fed would be patient in its timing of an interest-rate increase. U.S. stocks also were boosted by positive data reflecting an economy continuing to strengthen. November’s 5.8% unemployment rate was down from 7.0% a year earlier, and the number of jobs being added continued to expand, keeping U.S. employers on pace to hire nearly three million workers during 2014—the most since 1999. In addition, the U.S. economy’s third-quarter growth rate was revised upward during the quarter, to 5.0%—its fastest pace in 11 years. Meanwhile, U.S. companies continued to report strong earnings during the quarter, providing an additional catalyst for stocks. The steadily brightening U.S. economy energized consumers, who were further buoyed by much lower prices at the gasoline pump. During the fourth quarter, gasoline prices fell to their lowest levels in five years, according to the American Automobile Association.

As the U.S. churned forward, major economies elsewhere in the world faced significant ongoing challenges. Growth in China continued to slow, Japan remained in a recession that had begun the previous quarter, and Russia’s economy contracted for the first time since 2009 as the country struggled under the weight of slumping oil prices, international sanctions, and massive outflows of capital. In the eurozone, growth remained sluggish as member countries faced an environment of low demand, high unemployment, and weak business investment.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Strong fourth-quarter results by the U.S. stock market helped the S&P 500 Index deliver more than 50 record closes in 2014.

We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Investment objective

The Fund seeks long-term capital appreciation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

I. Charles Rinaldi

Erik C. Astheimer

Michael Schneider, CFA

Average annual total returns¹ (%) as of December 31, 2014

								Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		Gross		Net3
Class 1	7-16-2010		4.63		8.47		5.97		1.11		0.90
Class 2	10-10-1997		4.46		8.24		5.86		1.36		1.15
Russell 2000® Value Index4	–		4.22		14.26		6.89		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

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

Please see footnotes on page 5.

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

Growth of $10,000 investment⁵ as of December 31, 2014

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

^2. Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

^3. The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.89% for Class 1 and 1.14% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

^4. 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.

^5. The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 2000 Value Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^6. The ten largest equity holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^7. Sector distribution is subject to change and is calculated based on the total long-term investments of the Fund.

6 Wells Fargo Advantage VT Small Cap Value Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the Russell 2000 Value Index, for the 12-month period that ended December 31, 2014.

n Strong stock selection in several sectors contributed to the Fund’s relative performance.

n The Fund’s overweight to the energy sector detracted from relative results, largely due to plunging oil prices.

Strong stock selection was offset by sector positioning.

Equities once again staged an impressive fourth-quarter rally and turned around what was shaping up to be a flat-to-down year for the U.S. equity market. Solid earnings results and expectations for continued earnings growth supported the advance. Also bolstering the market’s gain were comments by U.S. Federal Reserve (Fed) Chair Janet Yellen stating the Fed will be patient on the timing of interest-rate increases and a strong U.S. economy. Other noteworthy developments during the period were an increasing supply of crude oil that resulted in the price of crude declining by almost half and a surging U.S. dollar, which pressured dollar-denominated commodities, such as gold—the price of gold fell to a multiyear low.

Ten largest equity holdings6 (%) as of December 31, 2014
Randgold Resources Limited ADR	5.97
InterOil Corporation	5.85
United Continental Holdings Incorporated	4.47
Delta Air Lines Incorporated	4.33
Chimera Investment Corporation	4.15
OSI Systems Incorporated	3.40
Cray Incorporated	3.05
Argo Group International Holdings Limited	2.86
Cavco Industries Incorporated	2.70
Newpark Resources Incorporated	1.99

Strong stock selection in several sectors contributed to relative returns during the period. Chief among the outperformers were airline stocks, which benefited from lower fuel prices, some capacity constraints, fare increases, and improved operating efficiencies. The Fund owned several airline stocks, such as United Continental Holdings Incorporated, and Delta Air Lines Incorporated, and collectively, they advanced 74% during the period. Airlines’ earnings have meaningfully improved since our initial purchases, and we believe future earnings growth is likely to continue in the year ahead.

The Fund’s performance benefited from strong stock selection in the information technology sector, led by Cray Incorporated and OSI Systems Incorporated. Cray posted strong gains after announcing several large contract wins. OSI Systems is recovering from operational missteps late in 2013. With some of those issues resolved, the company’s share price advanced and contributed to the Fund’s relative performance. We believe Cray and OSI Systems are well positioned to deliver on multiple growth drivers and aid the Fund’s future performance.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Small Cap Value Fund 7

Sector distribution⁷ as of December 31, 2014

Strong stock selection results were offset by the Fund’s large overweight to energy. Energy stock valuations were hard hit as oil prices fell approximately 50% in the latter half of 2014. Despite crude oil’s price decline, we remain positive on selected energy companies held by the Fund because of their resource base and their relative cost profile. As oil producers adjust production levels, we would expect oil prices to recover and energy stock valuations to improve.

A company-specific approach means identifying the right companies to own.

We take a company-specific approach to investing. For example, not every company in the energy sector is affected equally by the changing prices of oil and natural

gas. Top 10 holding InterOil Corporation’s resources are natural gas–based, and an important driver of the company’s valuation in the near term will be the completion of its transaction with supermajor energy company Total SA—the transaction is expected to close in the second half of 2015. We believe that the Total SA transaction provides support for the company’s current valuation.

We are experienced investment professionals who carefully analyze the value-enhancing potential of each Fund holding. The Fund is overweight energy and materials, and both sectors are currently out of favor. However, we believe the Fund is positioned to benefit from an eventual rebound in these sectors.

As we review the Fund’s holdings, we remain confident the Fund is well positioned for various market conditions that might arise in the upcoming year.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Small Cap Value Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 1
Actual	$	1,000.00	$	930.84	$	4.33		0.89	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.72	$	4.53		0.89	%
Class 2
Actual	$	1,000.00	$	930.73	$	5.55		1.14	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.46	$	5.80		1.14	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Small Cap Value Fund 9

Security name	Shares		Value
Common Stocks: 98.03%
Consumer Discretionary: 10.29%
Auto Components: 0.88%
Fox Factory Holding Corporation †		12,700	$	206,121
Gentex Corporation		5,300		191,489
				397,610
Hotels, Restaurants & Leisure: 3.80%
Century Casinos Incorporated †		28,800		145,440
Denny’s Corporation †		57,200		589,732
Peak Resorts Incorporated		13,900		111,200
Scientific Games Corporation Class A †		26,200		333,526
The Wendy’s Company		58,300		526,449
				1,706,347
Household Durables: 4.53%
Cavco Industries Incorporated †		15,300		1,212,831
Harman International Industries Incorporated		1,050		112,046
KB Home Incorporated		15,400		254,870
Skyline Corporation †		14,100		57,105
Taylor Morrison Home Corporation Class A †		9,600		181,344
The New Home Company Incorporated †		15,100		218,648
				2,036,844
Media: 0.37%
Journal Communications Incorporated Class A †		11,400		130,302
Starz A Incorporated †		1,200		35,640
				165,942
Specialty Retail: 0.54%
Vitamin Shoppe Incorporated †		5,000		242,900
Textiles, Apparel & Luxury Goods: 0.17%
Movado Group Incorporated		2,700		76,599
Energy: 16.24%
Energy Equipment & Services: 7.31%
Glori Energy Incorporated †		18,000		75,240
Helix Energy Solutions Group Incorporated †		22,500		488,250
Helmerich & Payne Incorporated		3,200		215,744
ION Geophysical Corporation †		85,600		235,400
Key Energy Services Incorporated †		61,500		102,705
Newpark Resources Incorporated †		93,900		895,806
Oceaneering International Incorporated		5,100		299,931
Parker Drilling Company †		63,400		194,638
PHI Incorporated (non-voting) †		10,600		396,440
PHI Incorporated (voting) †		100		3,526
Vantage Drilling Company †		44,400		21,703
Willbros Group Incorporated †		57,000		357,390
				3,286,773

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

10 Wells Fargo Advantage VT Small Cap Value Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Oil, Gas & Consumable Fuels: 8.93%
Clean Energy Fuels Corporation †		16,400	$	81,918
InterOil Corporation †		53,900		2,629,781
Range Resources Corporation		13,300		710,885
Sanchez Energy Corporation †		7,300		67,817
Stone Energy Corporation †		12,400		209,312
Trilogy Energy Corporation		46,100		313,480
				4,013,193
Financials: 20.84%
Banks: 6.57%
Ameris Bancorp		9,800		251,272
BBCN Bancorp Incorporated		16,388		235,659
CenterState Banks Incorporated		25,800		307,278
City National Corporation		3,100		250,511
First Horizon National Corporation		31,100		422,338
First Niagara Financial Group Incorporated		42,300		356,589
Hilltop Holdings Incorporated †		8,400		167,580
IBERIABANK Corporation		3,400		220,490
Park Sterling Corporation		20,800		152,880
The Bancorp Incorporated †		34,400		374,616
Wilshire Bancorp Incorporated		21,000		212,730
				2,951,943
Capital Markets: 0.58%
Medley Management Incorporated Class A		17,600		258,720
Consumer Finance: 0.71%
Cash America International Incorporated		6,600		149,292
Enova International Incorporated †		7,600		169,176
				318,468
Insurance: 3.95%
Argo Group International Holdings Limited		23,200		1,286,904
National General Holdings Corporation		5,500		102,355
OneBeacon Insurance Group Limited		23,900		387,180
				1,776,439
REITs: 8.74%
Chimera Investment Corporation		585,800		1,862,844
Invesco Mortgage Capital Incorporated		18,615		287,788
MFA Mortgage Investments Incorporated		68,000		543,320
Redwood Trust Incorporated		36,300		715,110
Sun Communities Incorporated		5,900		356,714
UMH Properties Incorporated		17,100		163,305
				3,929,081
Thrifts & Mortgage Finance: 0.29%
Northwest Bancshares Incorporated		10,300		129,059

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Small Cap Value Fund 11

Security name	Shares		Value
Health Care: 5.98%
Health Care Equipment & Supplies: 2.54%
Hologic Incorporated †		8,400	$	224,616
ICU Medical Incorporated †		300		24,570
OraSure Technologies Incorporated †		88,000		892,320
				1,141,506
Health Care Providers & Services: 1.99%
Air Methods Corporation †		1,500		66,045
Cross Country Healthcare Incorporated †		41,237		514,638
Healthways Incorporated †		15,800		314,104
				894,787
Health Care Technology: 0.60%
Allscripts Healthcare Solutions Incorporated †		21,200		270,724
Life Sciences Tools & Services: 0.26%
Parexel International Corporation †		2,100		116,676
Pharmaceuticals: 0.59%
Prestige Brands Holdings Incorporated †		7,600		263,872
Industrials: 16.91%
Airlines: 10.58%
American Airlines Group Incorporated		10,700		573,841
Delta Air Lines Incorporated		39,600		1,947,924
LATAM Airlines Group SP ADR †		18,700		224,026
United Continental Holdings Incorporated †		30,000		2,006,700
				4,752,491
Commercial Services & Supplies: 3.09%
ABM Industries Incorporated		20,600		590,190
ACCO Brands Corporation †		69,400		625,294
Healthcare Services Group Incorporated		5,600		173,208
				1,388,692
Electrical Equipment: 0.51%
GrafTech International Limited †		45,800		231,748
Machinery: 0.46%
Actuant Corporation Class A		7,600		207,024
Professional Services: 0.60%
Hill International Incorporated †		53,500		205,440
Kforce Incorporated		2,600		62,738
				268,178
Road & Rail: 1.08%
Covenant Transport Incorporated Class A †		17,900		485,269

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

12 Wells Fargo Advantage VT Small Cap Value Fund Portfolio of investments—December 31, 2014

Security name	Shares		Value
Trading Companies & Distributors: 0.59%
Applied Industrial Technologies Incorporated		5,800	$	264,422
Information Technology: 11.95%
Communications Equipment: 0.85%
Brocade Communications Systems Incorporated		14,800		175,232
Harmonic Incorporated †		29,300		205,393
				380,625
Electronic Equipment, Instruments & Components: 6.44%
Checkpoint Systems Incorporated †		25,700		352,861
Cognex Corporation †		9,800		405,034
Coherent Incorporated †		10,000		607,200
OSI Systems Incorporated †		21,600		1,528,632
				2,893,727
Internet Software & Services: 0.29%
Gogo Incorporated †		7,900		130,587
Semiconductors & Semiconductor Equipment: 0.57%
Kulicke & Soffa Industries Incorporated †		17,800		257,388
Technology Hardware, Storage & Peripherals: 3.80%
Cray Incorporated †		39,800		1,372,304
Diebold Incorporated		2,800		96,992
Quantum Corporation †		135,100		237,776
				1,707,072
Materials: 14.43%
Chemicals: 0.70%
Calgon Carbon Corporation †		6,900		143,382
Zep Incorporated		11,400		172,710
				316,092
Containers & Packaging: 0.45%
Intertape Polymer Group Incorporated (a)		12,600		201,743
Metals & Mining: 12.24%
Agnico-Eagle Mines Limited		10,100		251,389
Carpenter Technology Corporation		6,800		334,900
Dominion Diamond Corporation †		13,300		238,868
NovaGold Resources Incorporated †		41,900		123,605
Randgold Resources Limited ADR		39,800		2,682,918
Royal Gold Incorporated		8,500		532,950
Sandstorm Gold Limited †		50,400		171,360
Silver Standard Resources Incorporated †		45,300		226,726
Steel Dynamics Incorporated		36,100		712,614
United States Steel Corporation		4,000		106,960
Webco Industries Incorporated †(a)(i)		1,900		117,895
				5,500,185

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Small Cap Value Fund 13

Security name				Shares		Value
Paper & Forest Products: 1.04%
Deltic Timber Corporation					2,600	$	177,840
Wausau Paper Corporation					25,400		288,798
							466,638
Telecommunication Services: 1.39%
Diversified Telecommunication Services: 1.39%
Cincinnati Bell Incorporated †					195,300		623,007
Total Common Stocks (Cost $37,758,191)							44,052,371
Exchange-Traded Funds: 1.32%
KBW Regional Banking ETF					3,538		143,997
Market Vectors Gold Miners ETF					17,338		318,672
Market Vectors Junior Gold Miners ETF					5,454		130,514
Total Exchange-Traded Funds (Cost $965,079)							593,183
	Yield
Short-Term Investments: 0.67%
Investment Companies: 0.67%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.08	%		302,028		302,028
Total Short-Term Investments (Cost $302,028)							302,028

Total investments in securities (Cost $39,025,298)*	100.02	%		44,947,582
Other assets and liabilities, net	(0.02	)		(10,373	)
Total net assets	100.00	%	$	44,937,209

† Non-income-earning security

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

(i) Illiquid security for which the designation as illiquid is unaudited.

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

* Cost for federal income tax purposes is $39,330,992 and unrealized gains (losses) consists of:

Gross unrealized gains	$	11,109,684
Gross unrealized losses		(5,493,094	)
Net unrealized gains	$	5,616,590

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

14 Wells Fargo Advantage VT Small Cap Value Fund Statement of assets and liabilities—December 31, 2014

Assets
Investments
In unaffiliated securities, at value (cost $38,723,270)	$	44,645,554
In affiliated securities, at value (cost $302,028)		302,028
Total investments, at value (cost $39,025,298)		44,947,582
Receivable for investments sold		47,814
Receivable for Fund shares sold		24,568
Receivable for dividends		97,982
Prepaid expenses and other assets		6,931
Total assets		45,124,877
Liabilities
Payable for investments purchased		54,848
Payable for Fund shares redeemed		54,002
Advisory fee payable		19,725
Distribution fee payable		3,018
Administration fees payable		5,130
Professional fees payable		33,994
Accrued expenses and other liabilities		16,951
Total liabilities		187,668
Total net assets	$	44,937,209
NET ASSETS CONSIST OF
Paid-in capital	$	42,854,803
Undistributed net investment income		175,502
Accumulated net realized losses on investments		(4,015,380	)
Net unrealized gains on investments		5,922,284
Total net assets	$	44,937,209
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 1	$	31,296,041
Shares outstanding – Class 11		2,806,112
Net asset value per share – Class 1		$11.15
Net assets – Class 2	$	13,641,168
Shares outstanding – Class 21		1,223,918
Net asset value per share – Class 2		$11.15

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

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

Statement of operations—year ended December 31, 2014 Wells Fargo Advantage VT Small Cap Value Fund 15

Investment income
Dividends (net of foreign withholding taxes of $3,825)	$	867,813
Income from affiliated securities		489
Total investment income		868,302
Expenses
Advisory fee		375,623
Administration fees
Fund level		25,042
Class 1		27,896
Class 2		12,170
Distribution fee
Class 2		38,031
Custody and accounting fees		21,708
Professional fees		45,300
Shareholder report expenses		17,599
Trustees’ fees and expenses		14,929
Other fees and expenses		4,085
Total expenses		582,383
Less: Fee waivers and/or expense reimbursements		(98,612	)
Net expenses		483,771
Net investment income		384,531
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		4,638,815
Written options		10,334
Net realized gains on investments		4,649,149
Net change in unrealized gains (losses) on:
Unaffiliated securities		(2,509,908	)
Written options		(5,051	)
Net change in unrealized gains (losses) on investments		(2,514,959	)
Net realized and unrealized gains (losses) on investments		2,134,190
Net increase in net assets resulting from operations	$	2,518,721

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

16 Wells Fargo Advantage VT Small Cap Value Fund Statement of changes in net assets

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment income				$	384,531					$	396,437
Net realized gains on investments					4,649,149						4,406,238
Net change in unrealized gains (losses) on investments					(2,514,959	)					2,952,763
Net increase in net assets resulting from operations					2,518,721						7,755,438
Distributions to shareholders from
Net investment income
Class 1					(214,385	)					(363,474	)
Class 2					(53,163	)					(114,530	)
Total distributions to shareholders					(267,548	)					(478,004	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class 1		145,789			1,586,802			103,741			1,045,325
Class 2		190,581			2,169,735			242,058			2,440,592
					3,756,537						3,485,917
Reinvestment of distributions
Class 1		18,168			214,385			36,203			363,474
Class 2		4,505			53,163			11,408			114,530
					267,548						478,004
Payment for shares redeemed
Class 1		(707,033	)		(8,020,383	)		(842,800	)		(8,678,358	)
Class 2		(355,425	)		(4,044,288	)		(597,766	)		(6,193,805	)
					(12,064,671	)					(14,872,163	)
Net decrease in net assets resulting from capital share transactions					(8,040,586	)					(10,908,242	)
Total decrease in net assets					(5,789,413	)					(3,630,808	)
Net assets
Beginning of period					50,726,622						54,357,430
End of period				$	44,937,209					$	50,726,622
Undistributed net investment income				$	175,502					$	264,798

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

Financial highlights Wells Fargo Advantage VT Small Cap Value Fund 17

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 1	2014			2013			2012			2011			20101
Net asset value, beginning of period		$10.72			$9.41			$8.33			$9.04			$7.36
Net investment income		0.11			0.10			0.12			0.11			0.05	2
Net realized and unrealized gains (losses) on investments		0.39			1.31			1.06			(0.74	)		1.63
Total from investment operations		0.50			1.41			1.18			(0.63	)		1.68
Distributions to shareholders from
Net investment income		(0.07	)		(0.10	)		(0.10	)		(0.08	)		0.00
Net asset value, end of period		$11.15			$10.72			$9.41			$8.33			$9.04
Total return3		4.63	%		15.03	%		14.33	%		(7.06	)%		22.83	%
Ratios to average net assets (annualized)
Gross expenses		1.09	%		1.10	%		1.09	%		1.14	%		0.96	%
Net expenses		0.89	%		0.89	%		0.89	%		0.89	%		0.89	%
Net investment income		0.85	%		0.81	%		1.10	%		1.07	%		1.43	%
Supplemental data
Portfolio turnover rate		27	%		18	%		17	%		16	%		61	%
Net assets, end of period (000s omitted)		$31,296			$35,900			$38,113			$43,155			$58,255

^1.  For the period from July 16, 2010 (commencement of class operations) to December 31, 2010

^2.  Calculated based upon average shares outstanding

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

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

18 Wells Fargo Advantage VT Small Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$10.71			$9.40			$8.32			$9.03			$7.83
Net investment income		0.07			0.07			0.09			0.09			0.12
Net realized and unrealized gains (losses) on investments		0.41			1.31			1.07			(0.74	)		1.20
Total from investment operations		0.48			1.38			1.16			(0.65	)		1.32
Distributions to shareholders from
Net investment income		(0.04	)		(0.07	)		(0.08	)		(0.06	)		(0.12	)
Net asset value, end of period		$11.15			$10.71			$9.40			$8.32			$9.03
Total return		4.46	%		14.75	%		14.00	%		(7.26	)%		17.25	%
Ratios to average net assets (annualized)
Gross expenses		1.34	%		1.35	%		1.34	%		1.39	%		1.52	%
Net expenses		1.14	%		1.14	%		1.14	%		1.14	%		1.14	%
Net investment income		0.58	%		0.55	%		0.90	%		0.82	%		1.06	%
Supplemental data
Portfolio turnover rate		27	%		18	%		17	%		16	%		61	%
Net assets, end of period (000s omitted)		$13,641			$14,826			$16,245			$14,681			$19,606

^1.  After the close of business on July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

Notes to financial statements Wells Fargo Advantage VT Small Cap Value Fund 19

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Small Cap Value Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Equity securities and options that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures. Non-listed OTC options are valued at the evaluated price provided by an independent pricing service or an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On December 31, 2014, such fair value pricing was used in pricing foreign securities.

Investments in registered open-end investment companies are valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

20 Wells Fargo Advantage VT Small Cap Value Fund Notes to financial statements

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Options

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.

The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment, the value of which is subsequently adjusted based on the current market value of the option. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

Options traded on an exchange are regulated and terms of the options are standardized. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

Notes to financial statements Wells Fargo Advantage VT Small Cap Value Fund 21

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to dividends from certain securities. At December 31, 2014, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$(206,279)	$206,279

As of December 31, 2014, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $3,716,042 expiring in 2017.

Class allocations

The separate classes of shares offered by the Fund differ principally in distribution fees. Class specific expenses are charged directly to that share class. Investment income, common expenses and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

22 Wells Fargo Advantage VT Small Cap Value Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	4,626,242	$	0	$	0	$	4,626,242
Energy		6,986,486		313,480		0		7,299,966
Financials		9,363,710		0		0		9,363,710
Health care		2,687,565		0		0		2,687,565
Industrials		7,597,824		0		0		7,597,824
Information technology		5,369,399		0		0		5,369,399
Materials		6,165,020		319,638		0		6,484,658
Telecommunication services		623,007		0		0		623,007
Exchange-traded funds		593,183		0		0		593,183
Short-term investment
Investment companies		302,028		0		0		302,028
Total assets	$	44,314,464	$	633,118	$	0	$	44,947,582

Transfers in and transfers out are recognized at the end of the reporting period. At December 31, 2014, common stocks with a market value of $515,223 were transferred from Level 1 to Level 2 because of a decrease in the market activity of these securities. The Level 2 valuation is based on reference to similar securities from the same issuers which were trading on active markets at the end of the period. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.75% and declining to 0.60% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.75% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase.

Administration fees

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 from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee of 0.08% which is calculated based on its average daily net assets of each class.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.89% for Class 1 shares and 1.14% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Notes to financial statements Wells Fargo Advantage VT Small Cap Value Fund 23

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended December 31, 2014 were $13,120,566 and $19,401,197, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2014, the Fund entered into written options for economic hedging purposes.

During the year ended December 31, 2014, the Fund had written call option activities as follows:

	Call options
	Number of contracts			Premiums received
Options outstanding at December 31, 2013		22		$	7,691
Options written		75			13,421
Options expired		(6	)		(1,645	)
Options closed		(91	)		(19,467	)
Options exercised		0			0
Options outstanding at December 31, 2014		0		$	0

As of December 31, 2014, the Fund did not have any open written options. The Fund had an average of 18 written option contracts during the year ended December 31, 2014.

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

7. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $99 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $267,548 and $478,004 of ordinary income for the years ended December 31, 2014 and December 31, 2013, respectively.

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$183,549	$5,616,590	$(3,716,042)

9. INDEMNIFICATION

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

24 Wells Fargo Advantage VT Small Cap Value Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Small Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Small Cap Value Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

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

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 67.73% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended December 31, 2014.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1.  Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2.  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

28 Wells Fargo Advantage VT Small Cap Value Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230418 02-15

AVT8/AR154 12-14

Wells Fargo Advantage VT Total Return Bond Fund

Annual Report

December 31, 2014

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	25
Statement of operations	26
Statement of changes in net assets	27
Financial highlights	28
Notes to financial statements	29
Report of independent registered public accounting firm	34
Other information	35
List of abbreviations	38

The views expressed and any forward-looking statements are as of December 31, 2014, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage VT Total Return Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage VT Total Return Bond Fund for the 12-month period that ended December 31, 2014. The period was marked by a strong U.S. dollar, low interest rates, and sluggish growth outside the U.S.

The U.S. was the fastest-growing developed country, which benefited U.S. companies. Most bond sectors gained modestly amid renewed confidence in economic growth that drove outperformance in credit-sensitive sectors as solid economic growth boosted company revenue and profits and kept default rates low. Investment-grade U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index¹, returned 5.97% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. It tapered the size of its quantitative easing program each month until the program ended in October 2014 and also set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In September 2014, the ECB cut its key rate to a historic low of 0.05%. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB said it intends to increase the size of its balance sheet, a result of quantitative easing. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was sluggish outside the U.S.

The Fed has a dual mandate to maximize employment and keep prices stable, and economic activity during the period showed improvement on both these fronts. The unemployment rate ticked lower to 5.6% as of December 2014. On the inflation front, the personal consumption expenditures price index remained below the Fed’s longer-run objective of a 2% pace.

Elsewhere, economic data continued to show sluggish growth. The European Union’s gross domestic product was sluggish and the region’s unemployment rate remained elevated. Japan’s economy faltered in reaction to a sales-tax increase despite Prime Minister Abe’s economic plans to promote growth.

With the U.S. economy the furthest along its business cycle, the level of interest rates in the U.S. and Europe diverged—the 10-year U.S. Treasury yield was 2.17% at the end of December 2014 compared with 0.54% for 10-year German government yields, 163 basis points (100 basis points equals 1.00%) higher. This is largely attributed to the Fed being closer to eventually increasing interest rates while the ECB potentially needs to further increase, rather than scale back, its amount of accommodation. Further, U.S. economic activity is healthier than Europe’s.

^1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Advantage VT Total Return Bond Fund 3

Longer-dated securities and lower-rated credits were top performers.

Treasury bonds with maturities greater than 20 years returned more than 27% in 2014, according to the Barclays U.S. Aggregate Bond Index. This was due, in part, to strong demand from overseas investors because yields in Europe and Japan were substantially lower than U.S. yields. In addition, because the dollar strengthened, the returns from Treasuries were even higher for foreign-domiciled investors. Longer-maturity debt across all sectors outperformed shorter-dated securities.

Investment-grade corporate bonds returned 7.46% in 2014, according to the Barclays U.S. Aggregate Bond Index, and BBB-rated bonds had higher returns than AAA-rated bonds. Although lower-rated credits did best in 2014, the trend changed in the latter part of the year as oil prices fell dramatically. Not only were many energy and mining companies negatively affected, but investor trepidation about weak global growth caused investment-grade spreads to modestly widen while high-yield spreads widened substantially. For example, BBB-rated bonds returned 8.25% in 2014 but only 1.28% in the fourth quarter.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our website at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future.

4 Wells Fargo Advantage VT Total Return Bond Fund Performance highlights (unaudited)

Investment objective

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

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Troy Ludgood

Thomas O’Connor, CFA

Average annual total returns (%) as of December 31, 2014

								Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		Gross		Net2
Class 2	9-20-1999		5.59		4.85		5.02		0.94		0.91
Barclays U.S. Aggregate Bond Index3	–		5.97		4.45		4.71		–		–

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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-222-8222. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If fees had been reflected, performance would have been lower.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk and mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

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

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Total Return Bond Fund 5

Growth of $10,000 investment⁴ as of December 31, 2014

^1.  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

^2.  The Adviser has committed through April 30, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.90% for Class 2. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

^3.  The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

^4.  The chart compares the performance of Class 2 shares for the most recent ten years with the Barclays U.S. Aggregate Bond Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund. Performance figures of the Fund do not reflect fees charged pursuant to the terms of variable life insurance policies and variable annuity contracts.

^5.  The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

^6.  Portfolio allocation is subject to change and is calculated based on the total long-term investments of the Fund.

6 Wells Fargo Advantage VT Total Return Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Barclays U.S. Aggregate Bond Index for the 12-month period that ended December 31, 2014.

n Security selection within corporate bonds, specifically within the cable/media and energy sectors detracted and was not offset by good selection within the insurance, consumer noncylicals, and utilities sectors.

n Security selection within adjustable-rate mortgages (ARMs), collateralized mortgage obligations, and fixed-rate mortgage-backed securities (MBS) contributed to performance.

n Overweight sector allocations to commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) also contributed to performance.

Ten largest long-term holdings5 (%) as of  December 31, 2014
U.S. Treasury Note, 0.88%, 10-15-2017	4.72
U.S. Treasury Note, 0.88%, 8-15-2017	3.13
U.S. Treasury Note, 1.75%, 9-30-2019	2.98
U.S. Treasury Note, 0.63%, 9-30-2017	2.90
GNMA, 3.50%, 1-21-2045	2.10
U.S. Treasury Note, 2.25%, 11-15-2024	2.05
U.S. Treasury Note, 0.88%, 5-15-2017	2.00
U.S. Treasury Note, 1.63%, 12-31-2019	1.67
FNMA, 4.50%, 1-14-2045	1.45
U.S. Treasury Note, 1.50%, 1-31-2019	1.42

Interest rates fell, structured products outperformed, and credit spreads widened.

The Barclays U.S. Aggregate Bond Index posted a positive total return for the year, with positive returns across all sectors, on a relative basis, led by tightening in CMBS, ABS, and MBS, while credit was the sole sector that underperformed. In a low-interest-rate environment, investors continued to reach for yield, which helped investment-grade non-Treasury securities outperform for most of the year. Mortgages shrugged off the end of the Federal Reserve’s (Fed’s) quantitative easing program and performed well into year-end. Meanwhile, tumbling oil prices, weakening commodities, all-time lows in European bond yields, and fresh highs in U.S. equities

reflected the growing disparity between a strengthening U.S. economy and significant softness globally and negatively affected high-yield and emerging markets debt in the second half of 2014.

Portfolio allocation⁶ as of December 31, 2014

We reduced risk allocations in 2014.

We reduced the Fund’s overweight to corporate bonds throughout the year, ending with a small overweight. Our positioning at year-end reflected our expectations for prolonged supply pressure, deteriorating commodity fundamentals, and the achievement of relative valuation targets in many securities. Reductions were mainly in insurance, foreign agencies, and health care. Separately, we moved to an underweight in Brazil due to fundamental concerns early in 2014, later reallocating this exposure to Paraguay, which was fundamentally

improving. We also added cable/media (examples include DIRECTV Holdings LLC) and pipelines following the fourth quarter’s collapse in oil prices. We viewed spread widening to be excessive in Enterprise Products Operating LLC and other master limited partnerships with limited commodity exposure.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage VT Total Return Bond Fund 7

We reduced our mortgage allocations early in the year and stayed underweight throughout most of the year. We reduced our positioning in 30-year fixed-rate mortgages because we found better value in 20-year fixed-rate mortgages and hybrid adjustable-rate mortgages. Within 20-year MBS, we found value in 4.0% coupons, lower loan balance specified pools, and seasoned shorter average life pools. We significantly reduced our underweight to the Ginnie Mae sector over the course of the year.

In other structured products, we remained overweight CMBS and ABS. We reduced our overweight to student loans, selling both longer-maturity Federal Family Education Loan Program floating-rate notes and recent vintage Sallie Mae private student loans while adding three- to five-year credit card ABS, five-year prime auto ABS, and auto dealer floorplan ABS. In CMBS, we reduced risk throughout the year, especially in the fourth quarter.

We believe we are well positioned to take advantage of relative-value trading opportunities.

The U.S. economy appears to be consolidating its recent strength, providing solid momentum heading into 2015. Manufacturing surveys remain strong, and with robust payroll growth, the unemployment rate has fallen to 5.6%. The plunge in oil prices is a boon to the consumer and therefore good for consumer spending prospects. While most inflation measures remain below the Fed’s target of 2%, likely due to lower import costs, officials remain confident that medium-term inflation expectations are stable.

In light of this progress, the Fed is positioning for the normalization of monetary policy. Quantitative easing has ended, and official statements suggest that the Fed will assess incoming data patiently, with a federal funds rate increase around mid-2015 seeming reasonable. The pace of monetary policy normalization will be governed by incoming data and financial conditions.

We are closely watching international factors that provide a clear wildcard to the U.S. dollar–denominated financial markets, contributing to a volatile market environment. Strengthening domestic growth, mirrored against weaker growth abroad, is creating a powerful rally in the U.S. dollar. Fresh stimulus in Japan and Europe, along with signs of capital flight in several traditional emerging markets, is creating spillovers onto U.S. interest rates, mitigating the ending of the Fed’s asset purchases. Collapses in commodity and oil prices could be triggering a sizable global redistribution of haves and have-nots among countries, industries, and asset classes.

Consistent with our bottom-up security selection process, we maintain a neutral duration. We believe we are well positioned and stand ready to take advantage of relative-value trading opportunities as they arise.

Please see footnotes on page 5.

8 Wells Fargo Advantage VT Total Return Bond Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2014 to December 31, 2014.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.

	Beginning account value 7-1-2014		Ending account value 12-31-2014		Expenses paid during the period¹		Net annualized expense ratio
Class 2
Actual	$	1,000.00	$	1,017.38	$	4.58		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.67	$	4.58		0.90	%

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 29.20%
FHLMC ±		2.57	%		12-1-2042	$	39,294	$	39,748
FHLMC ±		2.68			11-1-2042		89,766		92,466
FHLMC (a)%%		2.70			2-16-2045		122,000		125,711
FHLMC (a)%%		2.73			1-13-2045		96,000		98,920
FHLMC (a)%%		2.75			2-16-2045		126,000		129,990
FHLMC (a)%%		2.75			12-16-2045		123,000		126,623
FHLMC ±		2.76			11-1-2044		189,794		196,279
FHLMC (a)%%		2.80			2-16-2045		122,000		126,169
FHLMC ±		2.81			9-1-2044		183		201
FHLMC (a)%%		2.83			1-13-2045		97,000		99,857
FHLMC ±		2.84			9-1-2044		2,564		2,643
FHLMC ±		2.84			11-1-2044		101		104
FHLMC (a)%%		2.85			1-15-2045		167,000		170,876
FHLMC ±		2.86			9-1-2044		211		218
FHLMC ±		2.87			11-1-2044		82,000		84,550
FHLMC ±		2.88			12-1-2044		132,000		136,134
FHLMC ±		2.90			11-1-2044		141,798		146,350
FHLMC ±		2.91			11-1-2044		21,994		22,706
FHLMC ±		2.91			11-1-2044		70,000		72,307
FHLMC ±		2.94			1-1-2044		74,461		76,078
FHLMC ±		2.95			11-1-2043		148,053		151,409
FHLMC ±		2.97			10-1-2043		105,002		107,421
FHLMC ±		3.01			11-1-2043		96,387		98,764
FHLMC		3.50			12-1-2029		29,000		30,881
FHLMC		3.50			6-1-2042		48,191		50,279
FHLMC		3.50			11-1-2042		76,376		79,680
FHLMC		3.50			11-1-2042		46,212		48,210
FHLMC		3.50			11-1-2042		25,797		26,913
FHLMC		3.50			3-1-2043		79,051		82,475
FHLMC		3.50			3-1-2043		110,499		115,251
FHLMC		3.50			3-1-2043		70,346		73,381
FHLMC		3.50			4-1-2043		74,114		77,311
FHLMC		3.50			4-1-2043		57,074		59,544
FHLMC		3.50			4-1-2043		45,479		47,448
FHLMC		3.50			4-1-2043		31,833		33,210
FHLMC		3.50			4-1-2043		77,997		81,360
FHLMC		3.50			5-1-2043		94,447		98,540
FHLMC		3.50			8-1-2043		44,158		46,071
FHLMC		3.50			9-1-2043		166,300		173,488
FHLMC		4.00			10-1-2029		62,473		67,333
FHLMC		4.00			11-1-2032		72,916		78,741
FHLMC		4.00			6-1-2033		21,610		23,317
FHLMC		4.00			11-1-2033		27,744		30,068
FHLMC		4.00			5-15-2039		273,981		293,220
FHLMC		4.50			6-1-2042		222,757		246,590
FHLMC		5.00			8-1-2039		366,149		412,192
FHLMC		5.50			7-1-2038		157,930		180,045
FHLMC Series 2980 Class QA		6.00			5-15-2035		347,370		384,709
FHLMC Series 336 Class 300		3.00			8-15-2044		328,083		331,900
FHLMC Series 3529 Class AG		6.50			4-15-2039		85,340		94,703
FHLMC Series 3664 Class DA		4.00			11-15-2037		59,583		63,300

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

10 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series 3876 Class NB		5.00	%		8-15-2038	$	94,619	$	103,208
FHLMC Series T-48 Class 1A3 ±		5.65			7-25-2033		2,235		2,529
FHLMC Series T-57 Class 1A2		7.00			7-25-2043		374		433
FHLMC Series T-57 Class 1A3		7.50			7-25-2043		23,862		28,482
FHLMC Series T-59 Class 1A3		7.50			10-25-2043		33,223		39,946
FHLMC Series T-60 Class 1A3		7.50			3-25-2044		34,103		40,804
FNMA ¤		0.00			10-9-2019		260,000		233,758
FNMA ±		2.39			1-1-2036		48,811		51,996
FNMA		2.50			11-1-2027		4,185		4,504
FNMA ±		2.56			5-1-2043		60,031		60,382
FNMA		2.63			9-6-2024		102,000		103,298
FNMA ±(a)%%		2.70			1-1-2045		126,000		129,607
FNMA (a)%%		2.73			2-16-2045		62,000		63,886
FNMA (a)%%		2.73			2-16-2045		122,000		125,940
FNMA ±		2.76			11-1-2044		1,738		1,811
FNMA ±		2.76			12-1-2044		125,000		128,828
FNMA ±		2.80			12-1-2044		158,000		163,003
FNMA ±		2.82			11-1-2044		357,332		368,625
FNMA ±		2.95			4-1-2042		70,732		73,195
FNMA ±		2.98			1-1-2044		58,602		60,110
FNMA %%		3.00			1-20-2030		900,000		935,169
FNMA %%		3.00			2-18-2030		400,000		414,881
FNMA		3.00			6-1-2032		71,463		73,853
FNMA		3.00			12-1-2037		66,110		66,829
FNMA		3.00			10-25-2042		423,883		429,403
FNMA ±		3.15			7-1-2044		46,609		48,296
FNMA ±		3.23			4-1-2044		446,201		464,842
FNMA		3.50			12-1-2029		98,000		104,247
FNMA		3.50			1-1-2030		200,000		213,121
FNMA		3.50			7-1-2042		36,403		37,982
FNMA		3.50			8-1-2042		121,219		126,476
FNMA		3.50			9-1-2042		68,675		71,662
FNMA		3.50			4-1-2043		25,869		26,991
FNMA		3.50			7-1-2043		63,613		66,377
FNMA		3.50			6-1-2044		103,569		108,055
FNMA %%		3.50			1-14-2045		250,000		260,481
FNMA %%		3.50			2-12-2045		600,000		623,514
FNMA		4.00			3-1-2025		9,159		9,866
FNMA		4.00			5-1-2025		18,340		19,757
FNMA		4.00			6-1-2025		115,943		124,607
FNMA		4.00			6-1-2026		24,705		26,620
FNMA		4.00			12-1-2028		56,629		61,015
FNMA		4.00			1-1-2029		226,778		244,342
FNMA		4.00			1-1-2029		37,114		39,990
FNMA		4.00			2-1-2029		90,218		97,206
FNMA		4.00			2-1-2029		61,737		66,519
FNMA		4.00			2-1-2029		85,838		92,498
FNMA		4.00			3-1-2029		87,127		93,871
FNMA		4.00			3-1-2029		60,662		65,367
FNMA		4.00			3-1-2029		81,208		86,866

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		4.00	%		4-1-2029	$	95,687	$	103,090
FNMA		4.00			7-1-2029		62,101		66,917
FNMA		4.00			11-1-2029		131,312		140,621
FNMA		4.00			3-1-2032		593,676		640,259
FNMA		4.00			8-1-2033		211,265		227,849
FNMA		4.00			9-1-2033		45,479		49,443
FNMA		4.00			9-1-2033		39,737		42,965
FNMA		4.00			9-1-2033		41,370		44,624
FNMA		4.00			11-1-2033		25,181		27,405
FNMA		4.00			2-1-2034		50,460		54,553
FNMA		4.00			2-1-2034		82,084		88,776
FNMA		4.00			3-1-2034		250,365		271,609
FNMA		4.00			4-1-2034		167,222		180,797
FNMA		4.00			5-1-2034		34,274		37,055
FNMA		4.00			6-1-2034		33,915		36,668
FNMA		4.00			6-1-2034		25,451		27,597
FNMA		4.00			6-1-2034		55,170		59,851
FNMA		4.00			6-1-2034		52,900		57,196
FNMA		4.00			7-1-2034		52,866		57,357
FNMA		4.00			7-1-2034		59,076		63,848
FNMA		4.00			7-1-2034		45,093		48,758
FNMA		4.00			7-1-2034		40,223		43,640
FNMA		4.00			8-1-2034		90,923		98,313
FNMA		4.00			8-1-2034		51,086		55,427
FNMA		4.00			8-1-2034		55,358		59,858
FNMA		4.00			9-1-2034		34,713		37,668
FNMA		4.00			9-1-2034		60,458		65,377
FNMA		4.00			6-25-2039		115,691		123,852
FNMA		4.00			1-1-2043		344,829		371,806
FNMA %%		4.00			1-14-2045		300,000		320,073
FNMA %%		4.00			2-12-2045		800,000		851,340
FNMA		4.50			10-1-2033		69,582		76,072
FNMA		4.50			5-1-2034		98,067		108,895
FNMA		4.50			5-1-2034		36,317		40,241
FNMA		4.50			11-1-2044		42,943		47,597
FNMA %%		4.50			1-14-2045		1,200,000		1,302,300
FNMA		5.00			3-1-2041		15,640		17,468
FNMA		5.00			7-1-2041		698,455		788,181
FNMA		5.00			8-1-2041		44,316		50,019
FNMA		5.50			9-1-2034		26,443		29,199
FNMA		5.50			4-1-2036		15,380		17,184
FNMA		5.50			7-1-2039		35,352		40,398
FNMA		5.50			4-1-2040		113,459		129,713
FNMA		5.50			4-25-2042		8,373		9,269
FNMA		6.00			8-1-2034		30,341		34,653
FNMA		6.00			4-1-2035		8,786		10,043
FNMA		6.00			12-1-2035		64,913		74,144
FNMA		6.00			7-1-2037		26,456		30,221
FNMA		6.00			7-1-2037		148,401		169,499
FNMA Series 2002-33 Class A2		7.50			6-25-2032		24,742		28,893

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

12 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2002-95 Class DB		6.00	%		1-25-2033	$	90,087	$	102,880
FNMA Series 2003-W17 Class 1A7		5.75			8-25-2033		86,000		92,833
FNMA Series 2005-5 Class PA		5.00			1-25-2035		27,280		29,763
FNMA Series 2006-56 Class CA		6.00			7-25-2036		18,291		21,323
FNMA Series 2009-20 Class DT		4.50			4-25-2039		100,428		110,498
FNMA Series 2011-53 Class TN		4.00			6-25-2041		267,816		286,211
FNMA Series 2012-130 Class DC		3.00			12-25-2042		564,041		570,463
FNMA Series 2012-134 Class LC		3.00			12-25-2042		78,428		79,262
FNMA Series 2012-411 Class A3		3.00			8-25-2042		86,726		86,205
GNMA %%		3.00			1-21-2045		1,100,000		1,124,267
GNMA %%		3.50			1-21-2045		1,800,000		1,888,677
GNMA %%		3.50			2-19-2045		800,000		837,350
GNMA %%		4.00			1-21-2045		100,000		107,189
GNMA %%		4.00			2-19-2045		900,000		962,873
Tennessee Valley Authority		2.88			9-15-2024		280,000		283,579
Total Agency Securities (Cost $25,951,901)									26,262,686
Asset-Backed Securities: 15.60%
Ally Auto Receivables Trust Series 2010-5 Class A4		1.75			3-15-2016		19,457		19,465
Ally Auto Receivables Trust Series 2011-1 Class A4		2.23			3-15-2016		20,943		20,957
Ally Auto Receivables Trust Series 2011-5 Class A4		1.32			7-15-2016		37,198		37,244
Ally Auto Receivables Trust Series 2012-1 Class A3		0.93			2-16-2016		966		966
Ally Auto Receivables Trust Series 2012-2 Class A3		0.74			4-15-2016		47,508		47,520
Ally Auto Receivables Trust Series 2013-1 Class A3		0.63			5-15-2017		27,352		27,356
Ally Auto Receivables Trust Series 2014-1 Class A4		1.53			4-15-2019		567,000		564,921
Ally Auto Receivables Trust Series 2014-2 Class A4		1.84			1-15-2020		42,000		42,118
Ally Auto Receivables Trust Series 2014-4 Class A2		1.43			6-17-2019		186,000		185,603
Ally Master Owner Trust Series 2012-5 Class A		1.54			9-15-2019		130,000		129,040
Ally Master Owner Trust Series 2014-5 Class A1 ±		0.65			10-15-2019		273,000		273,000
American Express Credit Account Master Trust Series 2012-2 Class A		0.68			3-15-2018		293,000		293,220
American Express Credit Account Master Trust Series 2012-5 Class A		0.59			5-15-2018		187,000		186,947
American Express Issuance Trust II Series 2013-2 Class A ±		0.59			8-15-2019		180,000		180,612
AmeriCredit Automobile Receivables Trust Series 2013-2 Class A2		0.53			11-8-2016		5,088		5,088
Avis Budget Rental Car Aesop Series 2013-1A Class A 144A		1.92			9-20-2019		152,000		150,425
Avis Budget Rental Car Funding LLC Series 2012-3A Class A 144A		2.10			3-20-2019		100,000		100,039
Bank of America Credit Card Trust Series 2007-A4 Class A4 ±		0.20			11-15-2019		148,000		146,943
Bank of America Credit Card Trust Series 2014-A2 Class A ±		0.43			9-16-2019		370,000		369,322
Bank of America Credit Card Trust Series 2014-A3 Class A ±		0.45			1-15-2020		265,000		264,952
Bank of the West Auto Trust Series 2014-1 Class A3 144A		1.09			3-15-2019		100,000		100,027
Bank of the West Auto Trust Series 2014-1 Class A4 144A		1.65			3-16-2020		100,000		99,814
California Republic Auto Receivables Trust Series 2014-2 Class A4		1.57			12-16-2019		52,000		51,858
California Republic Auto Receivables Trust Series 2014-3 Class A4		1.79			3-16-2020		50,000		50,016
Capital Auto Receivables Asset Trust Series 2013-1 Class A3		0.79			6-20-2017		289,000		289,244
Capital Auto Receivables Asset Trust Series 2013-2 Class A4		1.56			7-20-2018		79,000		79,655
Capital Auto Receivables Asset Trust Series 2013-3 Class A4		1.68			4-20-2018		50,000		50,458
Capital Auto Receivables Asset Trust Series 2013-4 Class A3		1.09			3-20-2018		127,000		126,981
Capital Auto Receivables Asset Trust Series 2013-4 Class A4		1.47			7-20-2018		172,000		172,883
Capital Auto Receivables Asset Trust Series 2014-1 Class A3		1.32			6-20-2018		118,000		118,442
Capital Auto Receivables Asset Trust Series 2014-1 Class A4		1.69			10-22-2018		102,000		102,492
Capital Auto Receivables Asset Trust Series 2014-2 Class A1 ±		0.47			6-20-2016		192,000		192,051

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Capital Auto Receivables Asset Trust Series 2014-2 Class A3		1.26	%		5-21-2018	$	177,000	$	177,376
Capital Auto Receivables Asset Trust Series 2014-2 Class A4		1.62			10-22-2018		51,000		51,226
Capital Auto Receivables Asset Trust Series 2014-3 Class A3		1.48			11-20-2018		196,000		195,840
Capital Auto Receivables Asset Trust Series 2014-3 Class A4		1.83			4-22-2019		29,000		29,054
Capital One Multi-Asset Execution Trust Series 2014-A5 Class A		1.48			7-15-2020		233,000		233,093
Chase Issuance Trust Series 2012-A4 Class A4		1.58			8-16-2021		122,000		119,401
Chase Issuance Trust Series 2012-A8 Class A8		0.54			10-16-2017		134,000		133,932
Chase Issuance Trust Series 2013-A6 Class A6 ±		0.58			7-15-2020		243,000		243,387
Chase Issuance Trust Series 2013-A7 Class A ±		0.59			9-15-2020		200,000		200,571
Chase Issuance Trust Series 2013-A9 Class A ±		0.58			11-16-2020		426,000		426,828
Chase Issuance Trust Series 2014-A5 Class A5 ±		0.53			4-15-2021		100,000		99,669
Chrysler Capital Auto Receivables Asset Trust Series 2014-BA Class A3 144A		1.27			5-15-2019		54,000		54,049
Citibank Credit Card Issuance Trust Series 2013-A7 Class A7 ±		0.59			9-10-2020		430,000		429,905
Citibank Credit Card Issuance Trust Series 2014-A3 Class A3 ±		0.36			5-9-2018		481,000		481,000
Citibank Credit Card Issuance Trust Series 2014-A6 Class A6		2.15			7-15-2021		995,000		995,706
Discover Card Execution Note Trust Series 2013-A5 Class A5		1.04			4-15-2019		200,000		199,778
Discover Card Execution Note Trust Series 2014-A1 Class A1 ±		0.59			7-15-2021		200,000		200,433
Ford Credit Auto Owner Trust Series 2013-B Class A3		0.57			10-15-2017		128,164		128,157
Ford Credit Auto Owner Trust Series 2014-1 Class A 144A		2.26			11-15-2025		273,000		274,467
Ford Credit Auto Owner Trust Series 2014-2A 144A		2.31			4-15-2026		157,000		157,406
Ford Credit Floorplan Master Owner Trust Series 2014-1 Class A1		1.20			2-15-2019		141,000		140,626
Ford Credit Floorplan Master Owner Trust Series 2012-2 Class A		1.92			1-15-2019		140,000		141,580
Honda Auto Receivables Owner Trust Series 2013-3 Class A3		0.77			5-15-2017		122,000		122,103
Honda Auto Receivables Owner Trust Series 2014-4 Class A4		1.46			10-15-2020		42,000		41,898
Hyundai Auto Receivables Trust Series 2011-C Class A4		1.30			2-15-2018		64,069		64,384
MBNA Credit Card Master Note Trust Series 2004-A3 Class A3 ±		0.42			8-16-2021		231,000		229,909
MMCA Automobile Trust Series 2011-A Class A4 144A		2.02			10-17-2016		14,005		14,012
Navient Student Loan Trust Series 2014-1 Class A2 ±		0.47			3-27-2023		100,000		99,609
Navient Student Loan Trust Series 2014-8 Class A2 ±		0.60			4-25-2023		167,000		167,082
Navient Student Loan Trust Series 2014-AA Class A2A 144A		2.74			2-15-2029		274,000		274,508
Nelnet Student Loan Trust Series 2004-4 Class A5 ±		0.39			1-25-2037		139,911		138,387
Nelnet Student Loan Trust Series 2004-5 Class A5 ±		0.41			10-27-2036		145,940		144,571
Nelnet Student Loan Trust Series 2005-1 Class A5 ±		0.34			10-25-2033		66,000		64,265
Nelnet Student Loan Trust Series 2006-1 Class A4 ±		0.32			11-23-2022		42,527		42,468
Nelnet Student Loan Trust Series 2006-2 Class A4 ±		0.31			10-26-2026		159,476		159,243
Nelnet Student Loan Trust Series 2007-1 Class A1 ±		0.24			11-27-2018		10,507		10,504
Nelnet Student Loan Trust Series 2010-4A Class A 144A±		0.97			4-25-2046		61,915		62,549
Santander Drive Auto Receivables Trust Series 2012-5 Class A3		0.83			12-15-2016		845		845
SLM Student Loan Trust Series 2005-6 Class A5 ±		1.43			7-27-2026		68,405		69,280
SLM Student Loan Trust Series 2005-7 Class A4 ±		0.38			10-25-2029		262,000		252,764
SLM Student Loan Trust Series 2005-9 Class A ±		0.35			1-27-2025		177,234		176,704
SLM Student Loan Trust Series 2006-3 Class A5 ±		0.33			1-25-2021		181,000		178,106
SLM Student Loan Trust Series 2007-2 Class A2 ±		0.63			5-15-2028		74,101		74,001
SLM Student Loan Trust Series 2007-2 Class B ±		0.40			7-25-2025		100,000		90,281
SLM Student Loan Trust Series 2010-1 Class A ±		0.57			3-25-2025		123,968		123,966
SLM Student Loan Trust Series 2012-6 Class A3 ±		0.91			5-26-2026		100,000		100,508
SLM Student Loan Trust Series 2012-6 Class B ±		1.17			4-27-2043		100,000		93,443
SLM Student Loan Trust Series 2012-D Class A2 144A		2.95			2-15-2046		155,000		159,308
SLM Student Loan Trust Series 2012-E Class A1 144A±		0.91			10-16-2023		71,587		71,790
SLM Student Loan Trust Series 2012-E Class A2 144A±		1.91			6-15-2045		233,000		239,725

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

14 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
SLM Student Loan Trust Series 2013-1 Class B ±		1.97	%		11-25-2043	$	100,000	$	100,257
SLM Student Loan Trust Series 2013-3 Class A2 ±		0.47			5-26-2020		106,000		105,834
SLM Student Loan Trust Series 2013-5 Class A2 ±		0.56			10-26-2020		100,000		100,103
SLM Student Loan Trust Series 2013-B Class A1 144A±		0.81			7-15-2022		98,159		98,321
SLM Student Loan Trust Series 2014-1 Class A2 ±		0.55			7-26-2021		100,000		99,990
SLM Student Loan Trust Series 2014-2 Class A3 ±		0.76			3-26-2029		119,000		119,400
SLM Student Loan Trust Series 2014-A Class A1 144A±		0.76			7-15-2022		77,583		77,537
SLM Student Loan Trust Series 2014-A Class A2A 144A		2.59			1-15-2026		101,000		102,255
Trade Maps Limited Series 2013-1A Class A 144A±		0.86			12-10-2018		268,000		268,347
World Financial Network Credit Card Master Trust Series 2014-B Class A		0.61			7-15-2019		98,000		97,961
Total Asset-Backed Securities (Cost $14,015,825)									14,029,361
Corporate Bonds and Notes: 17.98%
Consumer Discretionary: 1.70%
Auto Components: 0.07%
Johnson Controls Incorporated		4.63			7-2-2044		30,000		30,872
Johnson Controls Incorporated		4.95			7-2-2064		30,000		30,929
									61,801
Automobiles: 0.50%
Daimler Finance North America LLC 144A		1.88			1-11-2018		150,000		150,521
Daimler Finance North America LLC 144A		2.38			8-1-2018		150,000		152,105
General Motors Company		3.50			10-2-2018		120,000		122,400
General Motors Company		5.00			4-1-2035		10,000		10,421
General Motors Company		5.20			4-1-2045		15,000		15,825
									451,272
Hotels, Restaurants & Leisure: 0.06%
Yum! Brands Incorporated		5.35			11-1-2043		45,000		49,210
Internet & Catalog Retail: 0.05%
Amazon.com Incorporated		4.95			12-5-2044		45,000		46,522
Media: 0.96%
Cox Communications Incorporated 144A		4.80			2-1-2035		75,000		78,140
DIRECTV Holdings LLC		3.80			3-15-2022		95,000		96,650
DIRECTV Holdings LLC		3.95			1-15-2025		130,000		131,023
DIRECTV Holdings LLC		4.45			4-1-2024		95,000		99,399
Scripps Networks Interactive Incorporated		2.75			11-15-2019		60,000		60,251
Scripps Networks Interactive Incorporated		3.90			11-15-2024		110,000		112,000
Thomson Reuters Corporation		3.85			9-29-2024		105,000		106,153
Viacom Incorporated		4.85			12-15-2034		140,000		143,271
Viacom Incorporated		5.25			4-1-2044		35,000		37,012
									863,899
Specialty Retail: 0.06%
Bed Bath & Beyond Incorporated		5.17			8-1-2044		55,000		57,370

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Consumer Staples: 1.17%
Beverages: 0.34%
Anheuser-Busch InBev Finance Company		2.15	%		2-1-2019	$	150,000	$	150,605
Anheuser-Busch InBev Finance Company		2.63			1-17-2023		75,000		72,803
Anheuser-Busch InBev Worldwide Incorporated		7.75			1-15-2019		65,000		78,731
									302,139
Food Products: 0.53%
Tyson Foods Incorporated		4.50			6-15-2022		146,000		158,072
WM Wrigley Jr Company 144A		2.00			10-20-2017		40,000		40,291
WM Wrigley Jr Company 144A		2.40			10-21-2018		55,000		55,387
WM Wrigley Jr Company 144A		2.90			10-21-2019		107,000		108,384
WM Wrigley Jr Company 144A		3.38			10-21-2020		115,000		117,545
									479,679
Tobacco: 0.30%
Altria Group Incorporated		2.63			1-14-2020		115,000		115,334
Altria Group Incorporated		4.50			5-2-2043		65,000		65,459
Philip Morris International Incorporated		3.25			11-10-2024		45,000		45,097
Philip Morris International Incorporated		4.25			11-10-2044		45,000		45,760
									271,650
Energy: 2.20%
Energy Equipment & Services: 0.02%
Diamond Offshore Drilling Incorporated		4.88			11-1-2043		25,000		21,298
Oil, Gas & Consumable Fuels: 2.18%
Access Midstream Partners LP		4.88			5-15-2023		85,000		86,275
Chevron Corporation		2.19			11-15-2019		95,000		95,351
ConocoPhillips Company		2.88			11-15-2021		75,000		75,748
ConocoPhillips Company		4.15			11-15-2034		20,000		20,522
ConocoPhillips Company		4.30			11-15-2044		85,000		88,917
Continental Resources Company		4.50			4-15-2023		130,000		123,650
Dominion Gas Holdings LLC		4.60			12-15-2044		60,000		62,851
El Paso Pipeline Partners Operating LLC		4.10			11-15-2015		105,000		107,433
El Paso Pipeline Partners Operating LLC		4.30			5-1-2024		100,000		100,194
Energy Transfer Partners LP		6.50			2-1-2042		25,000		28,736
Enlink Midstream Partners LP		5.05			4-1-2045		75,000		72,457
Enterprise Products Operating LLC		3.75			2-15-2025		60,000		60,228
Enterprise Products Operating LLC		4.85			3-15-2044		70,000		72,990
Kerr-McGee Corporation		6.95			7-1-2024		165,000		201,666
Kinder Morgan Energy Partners LP		4.15			2-1-2024		50,000		49,872
Kinder Morgan Energy Partners LP		4.30			6-1-2025		10,000		10,034
Kinder Morgan Energy Partners LP		5.30			12-1-2034		30,000		30,452
Kinder Morgan Energy Partners LP		5.55			6-1-2045		70,000		71,696
Newfield Exploration Company		5.63			7-1-2024		85,000		84,097
Phillips 66		4.88			11-15-2044		120,000		122,826
Plains All American Pipeline LP		4.90			2-15-2045		70,000		71,137
Rowan Companies Incorporated		5.40			12-1-2042		54,000		47,042

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

16 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Southeast Supply Header LLC 144A		4.25	%		6-15-2024	$	100,000	$	101,341
Sunoco Logistics Partner LP		5.35			5-15-2045		110,000		111,217
TC Pipelines LP		4.65			6-15-2021		28,000		29,109
Western Gas Partners LP		5.38			6-1-2021		30,000		32,914
									1,958,755
Financials: 6.56%
Banks: 2.32%
Bank of America Corporation		1.50			10-9-2015		235,000		235,992
Bank of America Corporation		4.00			4-1-2024		185,000		192,627
Bank of America Corporation		4.25			10-22-2026		100,000		99,776
Bank of America Corporation		6.00			9-1-2017		120,000		132,327
BB&T Corporation		2.45			1-15-2020		185,000		184,508
Citigroup Incorporated		1.55			8-14-2017		175,000		174,518
Citigroup Incorporated		1.70			7-25-2016		120,000		120,851
Citigroup Incorporated		2.65			3-2-2015		74,000		74,220
Citigroup Incorporated		3.75			6-16-2024		75,000		76,715
Citigroup Incorporated		4.30			11-20-2026		35,000		34,922
HSBC USA Incorporated		2.38			2-13-2015		140,000		140,284
HSBC USA Incorporated		2.38			11-13-2019		210,000		209,939
Inter-American Development Bank		4.38			1-24-2044		35,000		43,161
JPMorgan Chase & Company		2.20			10-22-2019		135,000		133,836
JPMorgan Chase & Company		4.13			12-15-2026		160,000		159,564
JPMorgan Chase & Company		4.85			2-1-2044		65,000		72,105
									2,085,345
Capital Markets: 1.33%
Goldman Sachs Group Incorporated		6.25			2-1-2041		40,000		50,566
Goldman Sachs Group Incorporated		6.75			10-1-2037		45,000		56,582
Lazard Group LLC		4.25			11-14-2020		105,000		110,665
Lazard Group LLC		6.85			6-15-2017		210,000		233,786
Morgan Stanley		2.38			7-23-2019		205,000		204,244
Morgan Stanley		3.70			10-23-2024		200,000		202,724
Morgan Stanley		4.35			9-8-2026		85,000		85,508
Morgan Stanley		5.38			10-15-2015		100,000		103,447
State Street Corporation		3.30			12-16-2024		145,000		147,167
									1,194,689
Consumer Finance: 1.01%
American Express Credit Corporation		1.75			6-12-2015		220,000		221,225
American Express Credit Corporation		3.63			12-5-2024		60,000		60,500
Murray Street Investment Trust I		4.65			3-9-2017		188,000		198,426
Synchrony Financial		4.25			8-15-2024		95,000		97,482
Toyota Motor Credit Corporation		1.13			5-16-2017		210,000		209,283
Toyota Motor Credit Corporation		2.75			5-17-2021		125,000		126,853
									913,769
Diversified Financial Services: 0.13%
General Electric Capital Corporation		5.88			1-14-2038		90,000		113,882

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 0.75%
ACE INA Holdings Incorporated		3.35	%		5-15-2024	$	30,000	$	30,315
Alleghany Corporation		4.90			9-15-2044		55,000		57,694
American International Group Incorporated		4.50			7-16-2044		45,000		47,543
American International Group Incorporated		6.40			12-15-2020		66,000		78,703
American International Group Incorporated ±		8.18			5-15-2068		25,000		33,875
Assurant Incorporated		2.50			3-15-2018		105,000		106,010
Liberty Mutual Group Incorporated 144A		4.85			8-1-2044		65,000		66,071
Markel Corporation		3.63			3-30-2023		25,000		25,143
MetLife Incorporated		1.90			12-15-2017		55,000		55,128
Nationwide Financial Services Incorporated 144A		5.30			11-18-2044		100,000		105,495
Prudential Financial Incorporated		4.60			5-15-2044		20,000		21,078
Teachers Insurance and Annuity Association 144A		4.90			9-15-2044		45,000		50,146
									677,201
REITs: 1.02%
American Tower Corporation		3.45			9-15-2021		105,000		103,230
American Tower Corporation		3.50			1-31-2023		101,000		97,587
DDR Corporation		3.38			5-15-2023		120,000		116,341
DDR Corporation		4.63			7-15-2022		125,000		133,439
Federal Realty Investment Trust		3.00			8-1-2022		40,000		39,885
Federal Realty Investment Trust		3.95			1-15-2024		55,000		57,824
Healthcare Trust of America Holdings LP		3.38			7-15-2021		70,000		69,873
Mid-America Apartments LP		3.75			6-15-2024		110,000		110,394
Mid-America Apartments LP		4.30			10-15-2023		80,000		84,176
Tanger Properties LP		3.75			12-1-2024		45,000		45,349
Tanger Properties LP		3.88			12-1-2023		55,000		56,306
									914,404
Health Care: 1.55%
Biotechnology: 0.48%
Amgen Incorporated		1.25			5-22-2017		205,000		203,458
Amgen Incorporated		3.63			5-22-2024		75,000		76,233
Amgen Incorporated		5.38			5-15-2043		15,000		17,426
Celgene Corporation		3.63			5-15-2024		85,000		86,796
Celgene Corporation		5.25			8-15-2043		45,000		50,826
									434,739
Health Care Equipment & Supplies: 0.23%
Medtronic Incorporated 144A		2.50			3-15-2020		65,000		65,171
Medtronic Incorporated 144A		3.15			3-15-2022		95,000		96,513
Medtronic Incorporated 144A		4.38			3-15-2035		43,000		45,617
									207,301
Health Care Providers & Services: 0.33%
McKesson Corporation		3.80			3-15-2024		60,000		61,637
WellPoint Incorporated		3.50			8-15-2024		65,000		65,471
WellPoint Incorporated		3.13			5-15-2022		127,000		126,924
WellPoint Incorporated		5.10			1-15-2044		35,000		39,331
									293,363

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

18 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
Life Sciences Tools & Services: 0.26%
Thermo Fisher Scientific Incorporated		1.30	%		2-1-2017	$	125,000	$	124,307
Thermo Fisher Scientific Incorporated		3.30			2-15-2022		60,000		60,099
Thermo Fisher Scientific Incorporated		3.60			8-15-2021		50,000		51,634
									236,040
Pharmaceuticals: 0.25%
AbbVie Incorporated		4.40			11-6-2042		60,000		61,900
Forest Laboratories Incorporated 144A		4.38			2-1-2019		105,000		110,919
Mylan Incorporated		5.40			11-29-2043		45,000		49,942
									222,761
Industrials: 0.88%
Aerospace & Defense: 0.28%
Northrop Grumman Corporation		3.25			8-1-2023		135,000		136,017
Northrop Grumman Corporation		4.75			6-1-2043		100,000		111,645
									247,662
Machinery: 0.06%
Valmont Industries Incorporated		5.25			10-1-2054		55,000		55,494
Road & Rail : 0.54%
ERAC USA Finance LLC 144A		3.85			11-15-2024		40,000		40,566
ERAC USA Finance LLC 144A		5.63			3-15-2042		137,000		159,940
Penske Truck Leasing Company LP 144A		2.50			6-15-2019		130,000		129,207
Penske Truck Leasing Company LP 144A		3.05			1-9-2020		155,000		154,879
									484,592
Information Technology: 0.96%
Electronic Equipment, Instruments & Components: 0.15%
Keysight Technologies Incorporated 144A		4.55			10-30-2024		55,000		55,022
L-3 Communications Corporation		3.95			5-28-2024		80,000		80,662
									135,684
IT Services: 0.11%
Mastercard Incorporated		3.38			4-1-2024		95,000		97,513
Semiconductors & Semiconductor Equipment: 0.02%
Broadcom Corporation		4.50			8-1-2034		20,000		20,954
Software: 0.25%
Oracle Corporation		3.40			7-8-2024		85,000		86,876
Oracle Corporation		4.30			7-8-2034		105,000		112,421
Oracle Corporation		4.50			7-8-2044		25,000		27,154
									226,451
Technology Hardware, Storage & Peripherals: 0.43%
Apple Incorporated		2.85			5-6-2021		220,000		225,051
Apple Incorporated		3.45			5-6-2024		95,000		99,490

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Technology Hardware, Storage & Peripherals (continued)
Apple Incorporated		4.45	%		5-6-2044	$	55,000	$	60,608
									385,149
Materials: 0.52%
Chemicals: 0.35%
Albemarle Corporation		4.15			12-1-2024		45,000		45,720
Albemarle Corporation		5.45			12-1-2044		45,000		48,422
Eastman Chemical Company		3.80			3-15-2025		95,000		96,708
Eastman Chemical Company		4.65			10-15-2044		45,000		46,048
Mosaic Company		5.45			11-15-2033		30,000		33,942
Mosaic Company		5.63			11-15-2043		40,000		45,841
									316,681
Metals & Mining: 0.17%
Freeport-McMoRan Copper & Gold Incorporated		4.55			11-14-2024		95,000		92,248
Freeport-McMoRan Copper & Gold Incorporated		5.40			11-14-2034		30,000		29,247
Vale Overseas Limited		8.25			1-17-2034		25,000		29,919
									151,414
Telecommunication Services: 1.03%
Diversified Telecommunication Services: 1.03%
AT&T Incorporated		4.30			12-15-2042		50,000		47,536
AT&T Incorporated		4.35			6-15-2045		80,000		75,420
AT&T Incorporated		4.80			6-15-2044		50,000		50,948
Verizon Communications Incorporated		2.50			9-15-2016		105,000		107,357
Verizon Communications Incorporated		3.50			11-1-2024		100,000		98,250
Verizon Communications Incorporated		4.40			11-1-2034		293,000		291,236
Verizon Communications Incorporated 144A		4.86			8-21-2046		40,000		41,089
Verizon Communications Incorporated		5.15			9-15-2023		190,000		209,804
									921,640
Utilities: 1.41%
Electric Utilities: 0.79%
Alabama Power Company		4.15			8-15-2044		25,000		26,247
American Electric Power Company		1.65			12-15-2017		130,000		130,044
Connecticut Light & Power Company		4.30			4-15-2044		45,000		48,738
Consolidated Edison Company of New York Incorporated		4.63			12-1-2054		40,000		43,808
Niagara Mohawk Power Corporation 144A		4.28			10-1-2034		65,000		68,766
PacifiCorp		3.60			4-1-2024		115,000		118,846
Potomac Electric Power		3.60			3-15-2024		50,000		52,377
Public Service Company of Colorado		4.30			3-15-2044		30,000		32,295
Public Service Electric & Gas Company		3.05			11-15-2024		50,000		50,194
Public Service Electric & Gas Company		4.00			6-1-2044		55,000		56,683
Southwestern Electric Power Company		3.55			2-15-2022		40,000		41,027
Virginia Electric & Power Company		4.45			2-15-2044		35,000		38,231
									707,256

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

20 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
Gas Utilities: 0.09%
ONEOK Partners LP		2.00	%		10-1-2017	$	80,000	$	79,559
Multi-Utilities: 0.53%
Ameren Illinois Company		4.30			7-1-2044		50,000		53,527
Berkshire Hathaway Energy 144A		4.50			2-1-2045		60,000		62,781
Berkshire Hathaway Energy		5.15			11-15-2043		35,000		39,603
Consumers Energy Company		4.35			8-31-2064		40,000		41,757
Dominion Resources Incorporated		4.70			12-1-2044		60,000		63,851
Pacific Gas & Electric Corporation		3.25			6-15-2023		50,000		50,095
Puget Energy Incorporated		6.00			9-1-2021		145,000		169,628
									481,242
Total Corporate Bonds and Notes (Cost $15,818,883)									16,168,380
Municipal Obligations: 1.04%
California: 0.29%
California Build America Bonds (GO)		7.60			11-1-2040		80,000		126,647
Los Angeles CA Community College District Build America Bonds (GO)		6.75			8-1-2049		90,000		132,935
									259,582
Illinois: 0.06%
Illinois Finance Authority (GO)		5.88			3-1-2019		45,000		49,880
Nevada: 0.15%
Clark County NV Airport Authority Build America Bonds Series C (Airport Revenue)		6.82			7-1-2045		95,000		139,232
New Jersey: 0.19%
New Jersey Turnpike Authority Build America Bonds Series A (Transportation Revenue)		7.10			1-1-2041		119,000		173,869
New York: 0.14%
Port Authority of New York & New Jersey Consolidated Bonds Series 174 (Airport Revenue)		4.46			10-1-2062		120,000		126,641
Ohio: 0.04%
Ohio State University General Receipts Taxable Bonds Series A (Education Revenue)		4.80			6-1-2111		36,000		39,187
Texas: 0.17%
North Texas Tollway Authority (Transportation Revenue)		6.72			1-1-2049		104,000		151,096
Total Municipal Obligations (Cost $730,390)									939,487
Non-Agency Mortgage-Backed Securities: 4.44%
Bank of America Commercial Mortgage Incorporated Series 2005-4 Class A5A		4.93			7-10-2045		29,000		29,273
CFCRE Commercial Mortgage Trust Series 2011-C1 Series A4 144A±		4.96			4-15-2044		100,000		111,665
Citigroup Commercial Mortgage Trust Series 2013-GC17 Class A4		4.13			11-10-2046		31,000		33,651
Citigroup Commercial Mortgage Trust Series 2014-GC19 Class A3		3.75			3-10-2047		49,000		51,645
Citigroup Commercial Mortgage Trust Series 2014-GC19 Class AAB		3.55			3-10-2047		69,000		72,328
Commercial Mortgage Pass-Through Certificate Series 2012-UBS5 Class A3		3.55			9-10-2047		35,000		36,488
Commercial Mortgage Pass-Through Certificate Series 2013-CR12 Class A4		4.05			10-10-2046		19,000		20,485
Commercial Mortgage Pass-Through Certificate Series 2014-C17 Class A4		3.70			5-10-2047		31,000		32,392
Commercial Mortgage Pass-Through Certificate Series 2014-C19 Class A5		3.80			8-10-2047		137,000		144,622

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Commercial Mortgage Pass-Through Certificate Series 2014-C20 Class ASB		3.31	%		11-10-2047	$	43,000	$	44,024
Commercial Mortgage Pass-Through Certificate Series 2014-C4 Class A5		3.69			8-10-2047		262,000		272,880
Commercial Mortgage Pass-Through Certificate Series 2014-CR18 Class ASB		3.45			7-15-2047		58,000		60,189
Commercial Mortgage Pass-Through Certificate Series 2014-LC15 Class ASB		3.53			4-10-2047		102,000		106,473
Commercial Mortgage Pass-Through Certificate Series 2014-UBS5 Class A4		3.84			9-10-2047		98,000		103,790
Commercial Mortgage Pass-Through Certificate Series 2014-UBS6 Class AM ±		4.05			12-10-2047		110,000		114,398
Commercial Mortgage Pass-Through Certificate Series 2014-UBS6 Class ASB		3.39			12-10-2047		113,000		116,637
Commercial Mortgage Pass-Through Certificate Trust Series 2010-C1 Class A3 144A		4.21			7-10-2046		138,000		149,701
Commercial Mortgage Pass-Through Certificate Trust Series 2013-CR12 Class ASB		3.62			10-10-2046		52,000		54,507
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C5 Class A4 ±		5.10			8-15-2038		47,838		48,472
Deutsche Bank UBS Securities Mortgage Trust Series 2011-LC1A Class A1 144A		3.74			11-10-2046		90,123		92,327
Deutsche Bank UBS Securities Mortgage Trust Series 2011-LC2A Class A4 144A		4.54			7-10-2044		111,000		122,568
Greenwich Capital Commercial Funding Corporation Series 2005-GG5 Class A5 ±		5.22			4-10-2037		64,000		64,691
GS Mortgage Securities Corporation II Series 2011-GC3 Class A2 144A		3.65			3-10-2044		79,325		81,229
GS Mortgage Securities Trust Series 2005-GG4 Class A4		4.75			7-10-2039		30,177		30,206
GS Mortgage Securities Trust Series 2012-GCJ7 Class A1		1.14			5-10-2045		32,254		32,351
GS Mortgage Securities Trust Series 2014-GC18 Class A4		4.07			1-10-2047		64,000		68,904
GS Mortgage Securities Trust Series 2014-GC18 Class AAB		3.65			1-10-2047		60,000		63,090
GS Mortgage Securities Trust Series 2014-GC20 Class AAB		3.66			4-10-2047		133,000		139,990
GS Mortgage Securities Trust Series 2014-GC24 Class AAB		3.65			9-10-2047		182,000		191,501
GS Mortgage Securities Trust Series 2014-GC26 Class AAB		3.37			11-10-2047		71,000		73,384
Impact Funding LLC Series 2010-1 Class A1 144A		5.31			1-25-2051		329,450		377,344
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2004-LN2 Class A2		5.12			7-15-2041		7,120		7,127
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB14 Class A4 ±		5.48			12-12-2044		48,541		49,629
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-CNTR Class A1 144A		3.30			8-5-2032		64,637		66,860
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-C25 Class ASB		3.41			11-15-2047		15,000		15,588
JPMorgan Chase Commercial Mortgage Securities Trust Series 2010-C2 Class A3 144A		4.07			11-15-2043		266,000		285,262
Merrill Lynch Mortgage Trust Series 2005-CIP1 Class A4 ±		5.05			7-12-2038		26,000		26,221
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C10 Class A1		1.39			7-15-2046		125,672		126,238
Morgan Stanley Bank of America Merrill Lynch Trust Series 2014-C15 Class ASB		3.65			4-15-2047		45,000		47,230
Morgan Stanley Capital I Trust Series 2011-C2 Class A2 144A		3.48			6-15-2044		198,000		203,976
Motel 6 Trust Series 2012-MTL6 Class A2 144A		1.95			10-5-2025		191,000		190,418
UBS Barclays Commercial Mortgage Trust Series 2013-C5 Class A4		3.18			3-10-2046		33,000		33,551
Total Non-Agency Mortgage-Backed Securities (Cost $3,911,878)									3,993,305
U.S. Treasury Securities: 33.68%
U.S. Treasury Bond		2.75			11-15-2042		156,000		155,951
U.S. Treasury Bond		3.00			11-15-2044		99,000		104,043
U.S. Treasury Bond		3.13			11-15-2041		412,000		445,089
U.S. Treasury Bond		3.13			2-15-2043		288,000		309,420
U.S. Treasury Bond		3.13			8-15-2044		58,000		62,441
U.S. Treasury Bond		3.38			5-15-2044		64,000		72,100
U.S. Treasury Bond		3.63			8-15-2043		523,000		615,424
U.S. Treasury Bond		3.63			2-15-2044		602,000		708,949
U.S. Treasury Bond		3.75			11-15-2043		209,000		251,388
U.S. Treasury Note		0.38			10-31-2016		120,000		119,475
U.S. Treasury Note		0.50			9-30-2016		754,000		752,910
U.S. Treasury Note ##		0.63			12-31-2016		1,108,000		1,106,874

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

22 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note ##		0.63	%		9-30-2017	$	2,641,000	$	2,611,495
U.S. Treasury Note ##		0.88			5-15-2017		1,797,000		1,797,421
U.S. Treasury Note ##		0.88			8-15-2017		2,822,000		2,814,285
U.S. Treasury Note		0.88			10-15-2017		4,266,000		4,248,332
U.S. Treasury Note		0.88			11-15-2017		617,000		613,771
U.S. Treasury Note		1.00			12-15-2017		552,000		550,749
U.S. Treasury Note		1.50			1-31-2019		1,279,000		1,279,397
U.S. Treasury Note		1.50			5-31-2019		406,000		405,017
U.S. Treasury Note		1.50			10-31-2019		439,000		436,154
U.S. Treasury Note		1.50			11-30-2019		114,000		113,252
U.S. Treasury Note		1.63			6-30-2019		741,000		742,853
U.S. Treasury Note		1.63			8-31-2019		978,000		978,840
U.S. Treasury Note		1.63			12-31-2019		1,505,000		1,502,765
U.S. Treasury Note		1.75			9-30-2019		2,661,000		2,675,968
U.S. Treasury Note		1.88			11-30-2021		200,000		198,828
U.S. Treasury Note		2.00			10-31-2021		499,000		500,131
U.S. Treasury Note		2.25			7-31-2021		334,000		340,471
U.S. Treasury Note		2.25			11-15-2024		1,828,000		1,840,282
U.S. Treasury Note		2.38			8-15-2024		76,000		77,360
U.S. Treasury Note		2.50			5-15-2024		1,021,000		1,050,992
U.S. Treasury Note		3.13			4-30-2017		766,000		806,694
Total U.S. Treasury Securities (Cost $29,981,409)									30,289,121
Yankee Corporate Bonds and Notes: 4.18%
Consumer Discretionary: 0.29%
Media: 0.12%
British Sky Broadcasting 144A		3.75			9-16-2024		105,000		105,643
Textiles, Apparel & Luxury Goods: 0.17%
LVMH Moet Hennessy Louis Vuitton SA 144A		1.63			6-29-2017		158,000		158,115
Consumer Staples: 0.19%
Beverages: 0.19%
Pernod Ricard SA 144A		5.75			4-7-2021		150,000		172,302
Energy: 1.24%
Oil, Gas & Consumable Fuels: 1.24%
BP Capital Markets plc		3.54			11-4-2024		40,000		39,285
BP Capital Markets plc		3.81			2-10-2024		10,000		10,065
Canadian Oil Sands Trust Limited 144A		6.00			4-1-2042		55,000		49,660
Ecopetrol SA		5.88			5-28-2045		45,000		41,625
Ecopetrol SA		7.38			9-18-2043		45,000		48,600
Petrobras Global Finance Company		3.00			1-15-2019		70,000		61,885
Petrobras Global Finance Company		4.88			3-17-2020		100,000		93,551
Petroleos Mexicanos Company ±		2.25			7-18-2018		50,000		50,550
Petroleos Mexicanos Company		2.38			4-15-2025		120,000		118,662
Petroleos Mexicanos Company 144A		5.50			6-27-2044		15,000		15,300
Petroleos Mexicanos Company		6.38			1-23-2045		100,000		113,250
Statoil ASA		2.25			11-8-2019		80,000		80,046

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

Portfolio of investments—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Statoil ASA		2.90	%		11-8-2020	$	95,000	$	97,176
Talisman Energy Incorporated		3.75			2-1-2021		75,000		72,528
Total Capital International SA		2.10			6-19-2019		80,000		80,035
Total Capital International SA		2.75			6-19-2021		50,000		50,187
Weatherford International Limited		4.50			4-15-2022		45,000		40,051
Weatherford International Limited		5.95			4-15-2042		60,000		50,804
									1,113,260
Financials: 1.81%
Banks: 1.28%
Bank of Tokyo-Mitsubishi UFJ Limited 144A		2.35			9-8-2019		325,000		322,840
Credit Suisse (New York)		3.63			9-9-2024		250,000		254,310
ING Bank NV 144A		2.50			10-1-2019		275,000		276,759
ING Bank NV 144A		5.80			9-25-2023		90,000		99,835
Norddeutsche Landesbank Pfandbriefe 144A		2.00			2-5-2019		200,000		200,261
									1,154,005
Consumer Finance: 0.25%
CNOOC Finance Corporation Limited		1.63			4-30-2017		225,000		223,915
Diversified Financial Services: 0.28%
BHP Billiton Finance USA Limited		5.00			9-30-2043		35,000		39,673
Volkswagen International Finance NV 144A		1.13			11-18-2016		210,000		209,833
									249,506
Health Care: 0.11%
Pharmaceuticals: 0.11%
Actavis Funding SCS		3.85			6-15-2024		35,000		35,179
Actavis Funding SCS		4.85			6-15-2044		65,000		65,958
									101,137
Materials: 0.18%
Chemicals: 0.05%
LYB International Finance BV		4.88			3-15-2044		40,000		41,151
Metals & Mining: 0.13%
Barrick Gold Corporation		4.10			5-1-2023		45,000		43,794
Xstrata Finance Canada 144A		2.05			10-23-2015		71,000		71,461
									115,255
Telecommunication Services: 0.26%
Wireless Telecommunication Services: 0.26%
America Movil SAB de CV		3.13			7-16-2022		235,000		231,860
Utilities: 0.10%
Electric Utilities: 0.10%
Electricite de France 144A		6.00			1-22-2114		80,000		93,195
Total Yankee Corporate Bonds and Notes (Cost $3,754,820)									3,759,344

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

24 Wells Fargo Advantage VT Total Return Bond Fund Portfolio of investments—December 31, 2014

Security name	Interest rate			Maturity date		Principal		Value
Yankee Government Bonds: 1.16%
Province of Manitoba		3.05	%		5-14-2024	$	75,000	$	77,729
Republic of Paraguay 144A		6.10			8-11-2044		100,000		106,500
Republic of Slovenia 144A		5.25			2-18-2024		200,000		219,750
Slovak Republic 144A		4.38			5-21-2022		375,000		405,578
United Mexican States		5.75			10-12-2049		215,000		231,125
Total Yankee Government Bonds (Cost $976,418)									1,040,682
	Yield					Shares
Short-Term Investments: 4.90%
Investment Companies: 4.90%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class ##(l)(u)		0.08					4,410,686		4,410,686
Total Short-Term Investments (Cost $4,410,686)									4,410,686

Total investments in securities (Cost $99,552,210) *	112.18	%		100,893,052
Other assets and liabilities, net	(12.18	)		(10,956,528	)
Total net assets	100.00	%	$	89,936,524

± Variable rate investment. The rate shown is the rate in effect at period end.

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

%% The security is issued on a when-issued basis.

¤ The security is issued in zero coupon form with no periodic interest payments.

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

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

* Cost for federal income tax purposes is $99,674,339 and unrealized gains (losses) consists of:

Gross unrealized gains	$	1,534,948
Gross unrealized losses		(316,235	)
Net unrealized gains	$	1,218,713

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

Statement of assets and liabilities—December 31, 2014 Wells Fargo Advantage VT Total Return Bond Fund 25

Assets
Investments
In unaffiliated securities, at value (cost $95,141,524)	$	96,482,366
In affiliated securities, at value (cost $4,410,686)		4,410,686
Total investments, at value (cost $99,552,210)		100,893,052
Receivable for investments sold		12,122,005
Principal paydown receivable		10,146
Receivable for Fund shares sold		3,422
Receivable for interest		390,012
Prepaid expenses and other assets		6,210
Total assets		113,424,847
Liabilities
Dividends payable		3,121
Payable for investments purchased		23,098,314
Payable for Fund shares redeemed		256,356
Advisory fee payable		29,699
Distribution fee payable		19,838
Administration fee payable		10,316
Accrued expenses and other liabilities		70,679
Total liabilities		23,488,323
Total net assets	$	89,936,524
NET ASSETS CONSIST OF
Paid-in capital	$	91,987,830
Undistributed net investment income		13,787
Accumulated net realized losses on investments		(3,405,935	)
Net unrealized gains on investments		1,340,842
Total net assets	$	89,936,524
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Class 2	$	89,936,524
Shares outstanding – Class 21		8,554,067
Net asset value per share – Class 2		$10.51

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

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

26 Wells Fargo Advantage VT Total Return Bond Fund Statement of operations—year ended December 31, 2014

Investment income
Interest	$	2,009,844
Income from affiliated securities		2,094
Securities lending income, net		457
Total investment income		2,012,395
Expenses
Advisory fee		364,480
Administration fee		118,456
Distribution fee
Class 2		227,800
Custody and accounting fees		49,991
Professional fees		51,323
Shareholder report expenses		9,175
Trustees’ fees and expenses		15,980
Other fees and expenses		3,761
Total expenses		840,966
Less: Fee waivers and/or expense reimbursements		(20,885	)
Net expenses		820,081
Net investment income		1,192,314
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,765,045
TBA sale commitments		(3,843	)
Net realized gains on investments		1,761,202
Net change in unrealized gains (losses) on investments		2,039,702
Net realized and unrealized gains (losses) on investments		3,800,904
Net increase in net assets resulting from operations	$	4,993,218

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

Statement of changes in net assets Wells Fargo Advantage VT Total Return Bond Fund 27

	Year ended December 31, 2014						Year ended December 31, 2013
Operations
Net investment income				$	1,192,314					$	1,085,032
Net realized gains (losses) on investments					1,761,202						(696,697	)
Net change in unrealized gains (losses) on investments					2,039,702						(2,680,209	)
Net increase (decrease) in net assets resulting from operations					4,993,218						(2,291,874	)
Distributions to shareholders from
Net investment income – Class 2					(1,240,908	)					(1,136,906	)
Net realized gains – Class 2					0						(2,908,485	)
Total distributions to shareholders					(1,240,908	)					(4,045,391	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Class 2		1,245,757			12,903,246			1,865,149			19,545,659
Reinvestment of distributions – Class 2		119,606			1,240,908			398,039			4,045,391
Payment for shares redeemed – Class 2		(1,765,773	)		(18,312,667	)		(1,796,392	)		(18,758,567	)
Net increase (decrease) in net assets resulting from capital share transactions					(4,168,513	)					4,832,483
Total decrease in net assets					(416,203	)					(1,504,782	)
Net assets
Beginning of period					90,352,727						91,857,509
End of period				$	89,936,524					$	90,352,727
Undistributed net investment income				$	13,787					$	62,381

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

28 Wells Fargo Advantage VT Total Return Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended December 31
CLASS 2	2014			2013			2012			2011			20101
Net asset value, beginning of period		$10.09			$10.82			$10.54			$10.41			$10.34
Net investment income		0.14			0.12			0.15			0.22			0.29
Net realized and unrealized gains (losses) on investments		0.42			(0.38	)		0.48			0.62			0.43
Total from investment operations		0.56			(0.26	)		0.63			0.84			0.72
Distributions to shareholders from
Net investment income		(0.14	)		(0.13	)		(0.15	)		(0.28	)		(0.36	)
Net realized gains		0.00			(0.34	)		(0.20	)		(0.43	)		(0.29	)
Total distributions to shareholders		(0.14	)		(0.47	)		(0.35	)		(0.71	)		(0.65	)
Net asset value, end of period		$10.51			$10.09			$10.82			$10.54			$10.41
Total return		5.59	%		(2.43	)%		6.10	%		8.31	%		7.04	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.93	%		0.94	%		0.91	%		0.91	%
Net expenses		0.90	%		0.90	%		0.90	%		0.88	%		0.86	%
Net investment income		1.31	%		1.19	%		1.37	%		2.09	%		2.76	%
Supplemental data
Portfolio turnover rate		593	%		613	%		574	%		843	%		838	%
Net assets, end of period (000s omitted)		$89,937			$90,353			$91,858			$87,138			$85,416

^1.  After the close of business of July 16, 2010, existing shares of the Fund were renamed Class 2 shares.

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

Notes to financial statements Wells Fargo Advantage VT Total Return Bond Fund 29

1. ORGANIZATION

Wells Fargo Variable Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. These financial statements report on the Wells Fargo Advantage VT Total Return Bond Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer.

Short-term securities, with maturities of 60 days or less at time of purchase, generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles are fair valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Security loans

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

30 Wells Fargo Advantage VT Total Return Bond Fund Notes to financial statements

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

TBA sale commitments

The Fund may enter into To Be Announced (“TBA”) sale commitments to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities or offsetting TBA purchase commitments, which are deliverable on or before the sale commitment date, are held as “cover” for the transaction. Unsettled TBA sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Securities valuation”. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, the Fund realizes a gain or loss. If the Fund delivers securities under the commitment, the Fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.

Mortgage dollar roll transactions

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

Security transactions and income recognition

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

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

Notes to financial statements Wells Fargo Advantage VT Total Return Bond Fund 31

Distributions to shareholders

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

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of December 31, 2014, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $3,283,804 expiring in 2016.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2014:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	26,262,686	$	0	$	26,262,686
Asset-backed securities		0		14,029,361		0		14,029,361
Corporate bonds and notes		0		16,168,380		0		16,168,380
Municipal obligations		0		939,487		0		939,487
Non-agency mortgage-backed securities		0		3,993,305		0		3,993,305
U.S. Treasury securities		30,090,293		198,828		0		30,289,121
Yankee corporate bonds and notes		0		3,759,344		0		3,759,344
Yankee government bonds		0		1,040,682		0		1,040,682
Short-term investments
Investment companies		4,410,686		0		0		4,410,686
Total assets	$	34,500,979	$	66,392,073	$	0	$	100,893,052

32 Wells Fargo Advantage VT Total Return Bond Fund Notes to financial statements

Transfers in and transfers out are recognized at the end of the reporting period. At December 31, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase. For the year ended December 31, 2014, the advisory fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fee

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 from the Fund an annual administration fee starting at 0.13% and declining to 0.11% as the average daily net assets of the Fund increase.

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through April 30, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.90% for Class 2 shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended December 31, 2014 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$511,361,442	$73,191,887	$508,784,464	$75,037,943

6. BANK BORROWINGS

The Trust and Wells Fargo Funds Trust (excluding the money market funds and certain other funds) are parties to a $150,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. For the year ended December 31, 2014, the Fund paid $103 in commitment fees.

For the year ended December 31, 2014, there were no borrowings by the Fund under the agreement.

Notes to financial statements Wells Fargo Advantage VT Total Return Bond Fund 33

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended December 31, 2014 and December 31, 2013 were as follows:

	Year ended December 31
	2014	2013
Ordinary income	$1,240,908	$	2,927,256
Long-term capital gain	0		1,118,135

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$17,711	$1,218,713	$(3,283,804)

8. INDEMNIFICATION

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

34 Wells Fargo Advantage VT Total Return Bond Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO VARIABLE TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage VT Total Return Bond Fund (the “Fund”), one of the funds constituting the Wells Fargo Variable Trust, as of December 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage VT Total Return Bond Fund as of December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2015

Other information (unaudited) Wells Fargo Advantage VT Total Return Bond Fund 35

TAX INFORMATION

For the fiscal year ended December 31, 2014, 18.14% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

36 Wells Fargo Advantage VT Total Return Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 134 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Leroy Keith, Jr. (Born 1939)	Trustee, since 2010**	Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds complex (and its predecessors) from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 50 portfolios as of 12/16/2013); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Advantage VT Total Return Bond Fund 37

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other directorships during past five years
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

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

** Leroy Keith, Jr. retired as a Trustee effective December 31, 2014.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013. Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Senior Vice President of Wells Fargo Funds Management, LLC since 2007 and Chief Compliance Officer from 2007 to 2014. 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.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

^1.  Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 73 funds in the Fund Complex.

^2.  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

38 Wells Fargo Advantage VT Total Return Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Columbian Peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: wellsfargoadvantagefunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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 FINRA/SIPC, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

230419 02-15

AVT9/AR155 12-14

ITEM 2. CODE OF ETHICS

(a) As of the end of the period covered by the report, Wells Fargo Variable Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.

(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Trustees of Wells Fargo Variable Trust has determined that Judith Johnson is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mrs. Johnson is independent for purposes of Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by the Registrant’s audit committee.

	Fiscal year ended December 31, 2014		Fiscal year ended December 31, 2013
Audit fees	$	268,260	$	261,710
Audit-related fees		—		—
Tax fees (1)		21,130		20,600
All other fees		—		—
	$	289,390	$	282,310

(1) Tax fees consist of fees for tax compliance, tax advice, and tax planning.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services to the mutual funds of Wells Fargo Variable Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(f) Not applicable

(g) Not applicable

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

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

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES

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

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

ITEM 12. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit COE.

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

(a)(3) Not applicable.

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

SIGNATURES

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

Wells Fargo Variable Trust
By:	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date: February 24, 2015

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

Wells Fargo Variable Trust
By:	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date: February 24, 2015
By:	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date: February 24, 2015