Edgar Filing: WELLS FARGO MULTI-SECTOR INCOME FUND

Form N-Q

LOGO

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21507

Wells Fargo Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

525 Market Street, 12^th Floor, San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market Street, 12^th Floor, 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: October 31

Registrant is making a filing for Wells Fargo Multi-Sector Income Fund.

Date of reporting period: January 31, 2017

ITEM 1. INVESTMENTS


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Agency Securities : 2.22%
FHLMC ±		3.77	%	9-1-2032	$	1,115,602	$	1,154,568
FHLMC		8.50		7-1-2028		45,947		55,215
FHLMC		8.50		3-1-2030		17,343		17,554
FHLMC Series 1383 ±		2.69		2-1-2037		322,499		341,984
FHLMC Series 196 Class A ±		1.57		12-15-2021		18,135		18,314
FHLMC Series 2011-K16 Class B 144A±		4.60		11-25-2046		1,000,000		1,069,029
FHLMC Series 2011-K701 Class B 144A±		4.29		7-25-2048		165,000		167,639
FHLMC Series 2011-K702 Class B 144A±		4.77		4-25-2044		740,000		760,349
FHLMC Series 2012-K17 Class B 144A±		4.34		12-25-2044		675,000		717,452
FHLMC Series 2012-K18 Class B 144A±		4.25		1-25-2045		810,000		856,019
FHLMC Series 2012-K705 Class B 144A±		4.16		9-25-2044		1,000,000		1,030,017
FHLMC Series 2012-K706 Class B 144A±		4.17		11-25-2044		500,000		514,641
FHLMC Series 2012-K706 Class C 144A±		4.17		11-25-2044		805,000		819,255
FHLMC Series 2012-K707 Class B 144A±		3.88		1-25-2047		930,000		954,236
FHLMC Series 2012-K709 Class B 144A±		3.74		4-25-2045		1,000,000		1,024,433
FHLMC Series 2012-K711 Class B 144A±		3.56		8-25-2045		264,000		270,706
FHLMC Series 2013-K30 Class B 144A±		3.56		6-25-2045		700,000		713,823
FHLMC Series 2013-K713 Class B 144A±		3.17		4-25-2046		1,000,000		1,014,827
FHLMC Series 2390 Class FD ±		1.22		12-15-2031		21,657		21,668
FHLMC Series 2567 Class FH ±		1.17		2-15-2033		66,654		66,700
FHLMC Series K007 Class X1 ±(c)		1.12		4-25-2020		834,826		22,660
FHLMC Series K016 Class X1 ±(c)		1.54		10-25-2021		371,108		22,069
FHLMC Series K020 Class X1 ±(c)		1.44		5-25-2022		6,585,635		408,267
FNMA ±		2.66		9-1-2037		488,424		514,670
FNMA		6.00		4-1-2033		63,457		66,087
FNMA		7.50		10-1-2028		136		136
FNMA		7.50		2-1-2030		28,109		28,366
FNMA		7.50		9-1-2030		35,935		36,370
FNMA		8.00		6-1-2030		212		211
FNMA Series 1996-46 Class FA ±		1.27		8-25-2021		11,042		11,101
FNMA Series 1997-20 Class IO ±(c)		1.84		3-25-2027		881,045		27,067
FNMA Series 2001-25 Class Z		6.00		6-25-2031		131,110		145,560
FNMA Series 2001-35 Class F ±		1.37		7-25-2031		5,940		6,033
FNMA Series 2001-57 Class F ±		1.27		6-25-2031		5,980		6,007
FNMA Series 2002-77 Class FH ±		1.17		12-18-2032		43,459		43,485
FNMA Series 2002-97 Class FR ±		1.32		1-25-2033		10,322		10,460
FNMA Series G91-16 Class F ±		1.22		6-25-2021		9,753		9,805
FNMA Series G92-17 Class F ±		1.82		3-25-2022		41,887		42,526
GNMA		6.50		6-15-2028		27,828		31,682
GNMA		7.25		8-15-2017		686		687
GNMA		7.25		8-15-2017		1,353		1,355
GNMA		7.25		9-15-2017		3,590		3,611
GNMA		7.25		10-15-2017		5,357		5,383
GNMA		7.25		10-15-2017		1,118		1,120
GNMA		7.25		11-15-2017		732		733
GNMA		7.25		1-15-2018		2,671		2,678
GNMA		7.25		2-15-2018		4,600		4,631
GNMA		7.25		5-15-2018		3,351		3,360
Total Agency Securities (Cost $12,374,077)								13,044,549

Asset-Backed Securities : 0.22%
CVS Pass-Through Trust Series T		6.04		12-10-2028		521,091		587,509
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2		1.74		5-20-2030		703,838		705,353

Total Asset-Backed Securities (Cost $1,288,883)								1,292,862


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name					Shares		Value
Common Stocks : 0.99%
Energy : 0.09%
Oil, Gas & Consumable Fuels : 0.09%
Swift Energy Company †(i)						16,549	$	513,019

Materials : 0.00%
Chemicals : 0.00%
LyondellBasell Industries NV Class A						9		839

Utilities : 0.90%
Electric Utilities : 0.90%
Vistra Energy Corporation						327,375		5,306,749

Total Common Stocks (Cost $23,912,154)								5,820,607

	Interest rate			Maturity date	Principal
Corporate Bonds and Notes : 70.36%
Consumer Discretionary : 13.09%
Auto Components : 1.09%
Allison Transmission Incorporated 144A		5.00	%	10-1-2024	$	2,950,000		2,972,125
Cooper Tire & Rubber Company (i)		7.63		3-15-2027		1,680,000		1,839,600
Cooper Tire & Rubber Company (i)		8.00		12-15-2019		550,000		618,805
Goodyear Tire & Rubber Company		7.00		5-15-2022		400,000		418,680
Goodyear Tire & Rubber Company		8.75		8-15-2020		468,000		555,750
								6,404,960

Distributors : 0.15%
LKQ Corporation		4.75		5-15-2023		900,000		901,350

Diversified Consumer Services : 0.82%
Service Corporation International		7.50		4-1-2027		2,993,000		3,519,259
Service Corporation International		7.63		10-1-2018		680,000		734,400
Service Corporation International		8.00		11-15-2021		475,000		554,563
								4,808,222

Hotels, Restaurants & Leisure : 2.42%
Brinker International Incorporated 144A		5.00		10-1-2024		875,000		850,938
CCM Merger Incorporated 144A		9.13		5-1-2019		4,560,000		4,720,421
Greektown Holdings LLC 144A		8.88		3-15-2019		7,625,000		7,987,188
Hilton Worldwide Finance LLC		5.63		10-15-2021		195,000		200,816
Speedway Motorsports Incorporated		5.13		2-1-2023		425,000		428,239
								14,187,602

Household Durables : 0.00%
American Greetings Corporation		7.38		12-1-2021		20,000		20,725

Internet & Direct Marketing Retail : 0.14%
Expedia Incorporated		5.95		8-15-2020		750,000		824,569

Leisure Products : 0.11%
Vista Outdoor Incorporated		5.88		10-1-2023		600,000		624,750

Media : 6.75%
Altice US Finance I Corporation 144A		5.38		7-15-2023		1,395,000		1,452,544
Altice US Finance I Corporation 144A		5.50		5-15-2026		1,275,000		1,306,875


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Media (continued)
AMC Entertainment Holdings Incorporated 144A		5.88	%	11-15-2026	$	925,000	$	943,500
Cablevision Systems Corporation		8.63		9-15-2017		1,310,000		1,358,313
CBS Radio Incorporated 144A		7.25		11-1-2024		45,000		46,884
CCO Holdings LLC		5.13		2-15-2023		300,000		311,250
CCO Holdings LLC 144A		5.13		5-1-2023		1,780,000		1,846,750
CCO Holdings LLC		5.25		9-30-2022		1,250,000		1,294,025
CCO Holdings LLC 144A		5.38		5-1-2025		4,150,000		4,321,188
CCO Holdings LLC 144A		5.50		5-1-2026		215,000		225,213
CCO Holdings LLC 144A		5.75		2-15-2026		3,375,000		3,576,447
CCO Holdings LLC 144A		5.88		4-1-2024		1,250,000		1,337,113
CCO Holdings LLC		6.63		1-31-2022		775,000		802,125
Cequel Communications Holdings I LLC 144A		7.75		7-15-2025		2,030,000		2,245,688
Cinemark USA Incorporated		4.88		6-1-2023		325,000		327,405
CSC Holdings LLC		7.88		2-15-2018		1,000,000		1,055,000
CSC Holdings LLC		8.63		2-15-2019		383,000		425,130
EMI Music Publishing 144A		7.63		6-15-2024		525,000		573,563
Gray Television Incorporated 144A		5.13		10-15-2024		1,450,000		1,424,625
Gray Television Incorporated 144A		5.88		7-15-2026		3,875,000		3,850,781
Interpublic Group of Companies		4.00		3-15-2022		750,000		778,303
Lamar Media Corporation		5.88		2-1-2022		690,000		711,563
Live Nation Entertainment Incorporated 144A		4.88		11-1-2024		1,400,000		1,400,000
National CineMedia LLC		5.75		8-15-2026		925,000		941,188
National CineMedia LLC		6.00		4-15-2022		1,725,000		1,781,063
Nexstar Broadcasting Group Incorporated 144A		5.63		8-1-2024		850,000		848,938
Nexstar Broadcasting Group Incorporated 144A		6.13		2-15-2022		950,000		985,150
Nexstar Broadcasting Group Incorporated		6.88		11-15-2020		1,750,000		1,814,925
Outfront Media Capital Corporation		5.63		2-15-2024		20,000		20,875
Outfront Media Capital Corporation		5.88		3-15-2025		775,000		809,875
Time Warner Cable Incorporated		4.00		1-15-2022		750,000		779,258
								39,595,557

Multiline Retail : 0.10%
Macy’s Retail Holdings Incorporated		3.88		1-15-2022		600,000		604,317

Specialty Retail : 1.43%
Advance Auto Parts Incorporated		4.50		1-15-2022		600,000		635,454
Asbury Automotive Group Incorporated		6.00		12-15-2024		1,175,000		1,201,438
Century Intermediate Holding Company (PIK at 10.50%) 144A¥		9.75		2-15-2019		300,000		304,125
L Brands Incorporated		6.63		4-1-2021		750,000		823,125
Penske Auto Group Incorporated		5.38		12-1-2024		2,150,000		2,160,750
Penske Auto Group Incorporated		5.75		10-1-2022		1,155,000		1,189,650
Sonic Automotive Incorporated		5.00		5-15-2023		1,224,000		1,181,160
Sonic Automotive Incorporated		7.00		7-15-2022		825,000		862,125
								8,357,827

Textiles, Apparel & Luxury Goods : 0.08%
Wolverine World Wide Company 144A		5.00		9-1-2026		500,000		475,000

Consumer Staples : 1.49%
Beverages : 0.25%
Anheuser-Busch InBev SA		3.75		1-15-2022		600,000		628,333
Cott Beverages Incorporated		6.75		1-1-2020		790,000		818,835
								1,447,168

Food Products : 1.07%
B&G Foods Incorporated		4.63		6-1-2021		300,000		306,750
Darling Ingredients Incorporated		5.38		1-15-2022		180,000		186,885
Kraft Foods Group Incorporated		3.50		6-6-2022		750,000		764,396


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Food Products (continued)
Lamb Weston Holdings Incorporated 144A		4.63	%	11-1-2024	$	50,000	$	50,125
Lamb Weston Holdings Incorporated 144A		4.88		11-1-2026		50,000		50,063
Pilgrim’s Pride Corporation 144A		5.75		3-15-2025		1,130,000		1,137,774
Pinnacle Foods Incorporated 144A		5.63		5-1-2024		325,000		329,690
Pinnacle Foods Incorporated		5.88		1-15-2024		75,000		79,298
Post Holdings Incorporated 144A		5.00		8-15-2026		700,000		676,809
Post Holdings Incorporated 144A		8.00		7-15-2025		900,000		1,012,500
Prestige Brands Incorporated 144A		6.38		3-1-2024		130,000		135,525
Simmons Foods Incorporated 144A		7.88		10-1-2021		1,100,000		1,152,250
US Foods Incorporated 144A		5.88		6-15-2024		410,000		428,450
								6,310,515

Household Products : 0.04%
Central Garden & Pet Company		6.13		11-15-2023		250,000		267,500

Tobacco : 0.13%
Reynolds American Incorporated		6.88		5-1-2020		650,000		738,079

Energy : 17.94%
Energy Equipment & Services : 5.69%
Bristow Group Incorporated		6.25		10-15-2022		4,480,000		4,004,000
Cleaver Brooks Incorporated 144A		8.75		12-15-2019		95,000		99,394
Era Group Incorporated		7.75		12-15-2022		2,350,000		2,209,000
Hilcorp Energy Company 144A		5.00		12-1-2024		1,450,000		1,428,250
Hilcorp Energy Company 144A		5.75		10-1-2025		1,375,000		1,387,031
Hornbeck Offshore Services Incorporated		1.50		9-1-2019		2,825,000		2,019,875
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		4,025,000		2,807,438
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		1,860,000		1,385,700
NGPL PipeCo LLC 144A		7.12		12-15-2017		2,060,000		2,121,800
NGPL PipeCo LLC 144A		7.77		12-15-2037		9,060,000		10,011,300
NGPL PipeCo LLC 144A		9.63		6-1-2019		435,000		454,575
PHI Incorporated		5.25		3-15-2019		5,675,000		5,462,188
								33,390,551

Oil, Gas & Consumable Fuels : 12.25%
Continental Resources Incorporated		5.00		9-15-2022		825,000		843,563
Crestwood Midstream Partners LP		6.13		3-1-2022		225,000		232,313
Crestwood Midstream Partners LP		6.25		4-1-2023		1,350,000		1,393,875
Denbury Resources Incorporated		4.63		7-15-2023		4,725,000		3,774,094
Denbury Resources Incorporated		5.50		5-1-2022		425,000		364,438
Denbury Resources Incorporated		6.38		8-15-2021		1,460,000		1,335,900
El Paso LLC		6.50		4-1-2020		750,000		837,184
Enable Midstream Partner LP		2.40		5-15-2019		2,350,000		2,326,061
Enable Midstream Partner LP		3.90		5-15-2024		1,750,000		1,685,268
Enable Midstream Partner LP		5.00		5-15-2044		275,000		249,483
Enable Oklahoma Intrastate Transmission LLC 144A		6.25		3-15-2020		250,000		266,180
Energy Transfer Partners LP		5.20		2-1-2022		750,000		809,276
EnLink Midstream LLC		4.15		6-1-2025		2,950,000		2,898,732
EnLink Midstream LLC		4.40		4-1-2024		3,200,000		3,210,355
Exterran Partners LP		6.00		4-1-2021		2,225,000		2,202,750
Gulfport Energy Corporation 144A		6.00		10-15-2024		1,000,000		1,018,750
Gulfport Energy Corporation 144A		6.38		5-15-2025		800,000		820,000
Gulfport Energy Corporation		6.63		5-1-2023		2,200,000		2,299,000
Kinder Morgan Energy Partners LP		3.95		9-1-2022		750,000		772,177
Kinder Morgan Incorporated		6.50		9-15-2020		285,000		319,344
Kinder Morgan Incorporated (i)		7.42		2-15-2037		800,000		897,037
Matador Resources Company 144A		6.88		4-15-2023		300,000		316,500
Murphy Oil Corporation		4.70		12-1-2022		850,000		834,594
Murphy Oil Corporation		6.88		8-15-2024		850,000		911,625
Nabors Industries Incorporated		4.63		9-15-2021		750,000		765,000
Nabors Industries Incorporated 144A		5.50		1-15-2023		250,000		261,250


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels (continued)
Overseas Shipholding Group Incorporated		8.13	%	3-30-2018	$	2,275,000	$	2,348,938
PDC Energy Incorporated 144A		6.13		9-15-2024		575,000		600,875
Phillips 66		4.30		4-1-2022		625,000		670,921
Pioneer Natural Resources Company		3.95		7-15-2022		750,000		778,582
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		4,450,000		4,717,000
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		3,524,000		3,612,805
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		1,465,000		1,567,550
Rose Rock Midstream LP		5.63		7-15-2022		1,200,000		1,194,000
Rose Rock Midstream LP		5.63		11-15-2023		825,000		815,719
Sabine Oil & Gas Corporation (i)(s)		7.25		6-15-2019		520,000		5,148
Sabine Oil & Gas Corporation (i)(s)		7.50		9-15-2020		3,500,000		34,650
Sabine Pass Liquefaction LLC		5.63		2-1-2021		1,375,000		1,488,438
Sabine Pass Liquefaction LLC		5.63		4-15-2023		1,710,000		1,855,350
Sabine Pass Liquefaction LLC		5.63		3-1-2025		460,000		499,675
Sabine Pass Liquefaction LLC		5.75		5-15-2024		1,625,000		1,769,219
Sabine Pass Liquefaction LLC 144A		5.88		6-30-2026		625,000		694,531
Sabine Pass Liquefaction LLC		6.25		3-15-2022		3,550,000		3,958,250
SemGroup Corporation		7.50		6-15-2021		4,250,000		4,420,000
Southern Star Central Corporation 144A		5.13		7-15-2022		50,000		51,000
Southwestern Energy Company		4.10		3-15-2022		425,000		394,188
Southwestern Energy Company		6.70		1-23-2025		650,000		653,250
Tallgrass Energy Partners LP 144A		5.50		9-15-2024		5,600,000		5,684,000
Tesoro Logistics LP		6.13		10-15-2021		225,000		235,406
Tesoro Logistics LP		6.38		5-1-2024		450,000		488,813
Western Gas Partners LP		4.00		7-1-2022		175,000		179,821
Western Gas Partners LP		5.38		6-1-2021		728,000		787,985
Williams Partners LP		3.35		8-15-2022		750,000		750,679
								71,901,542

Financials : 7.87%
Banks : 0.89%
Bank of America Corporation		5.70		1-24-2022		250,000		279,734
CIT Group Incorporated		5.25		3-15-2018		100,000		103,350
CIT Group Incorporated 144A		5.50		2-15-2019		1,275,000		1,341,402
CIT Group Incorporated 144A		6.63		4-1-2018		550,000		577,775
Citigroup Incorporated		4.50		1-14-2022		250,000		265,875
Citigroup Incorporated		6.00		8-15-2017		650,000		665,450
City National Bank		5.38		7-15-2022		500,000		554,142
HSBC Bank USA		6.00		8-9-2017		650,000		664,958
JPMorgan Chase & Company		3.38		5-1-2023		750,000		749,692
								5,202,378

Capital Markets : 0.68%
ACE Securities Corporation ±		3.40		6-25-2033		332,808		329,028
Blackstone Holdings Finance Company LLC 144A		5.88		3-15-2021		750,000		838,995
Goldman Sachs Group Incorporated		5.75		1-24-2022		750,000		840,699
Jefferies Finance LLC 144A		6.88		4-15-2022		1,360,000		1,319,200
Neuberger Berman Group LLC 144A		5.88		3-15-2022		650,000		671,128
								3,999,050

Consumer Finance : 3.28%
Ally Financial Incorporated		8.00		12-31-2018		780,000		852,150
Ally Financial Incorporated		8.00		3-15-2020		755,000		858,578
Discover Financial Services		5.20		4-27-2022		750,000		810,058
Ford Motor Credit Company LLC		5.00		5-15-2018		650,000		674,240
General Motors Financial Company		3.70		5-9-2023		750,000		743,841
Navient Corporation		8.00		3-25-2020		1,930,000		2,072,338
Navient Corporation		8.45		6-15-2018		1,675,000		1,783,205


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance (continued)
Springleaf Finance Corporation		6.00	%		6-1-2020	$	1,285,000	$	1,285,000
Springleaf Finance Corporation		6.50			9-15-2017		200,000		204,000
Springleaf Finance Corporation		6.90			12-15-2017		4,550,000		4,686,500
Springleaf Finance Corporation		7.75			10-1-2021		475,000		495,188
Springleaf Finance Corporation		8.25			12-15-2020		75,000		80,531
Springleaf Finance Corporation		8.25			10-1-2023		1,160,000		1,206,400
OneMain Financial Group LLC 144A		7.25			12-15-2021		3,450,000		3,523,313
									19,275,342

Diversified Financial Services : 1.10%
General Electric Capital Corporation		4.65			10-17-2021		187,000		205,573
Infinity Acquisition LLC 144A(i)		7.25			8-1-2022		1,735,000		1,522,463
ING US Incorporated		5.50			7-15-2022		750,000		827,544
Moody’s Corporation		5.50			9-1-2020		1,302,000		1,428,118
NewStar Financial Incorporated		7.25			5-1-2020		2,450,000		2,468,375
									6,452,073

Insurance : 1.92%
American International Group Incorporated		4.88			6-1-2022		750,000		817,594
Endurance Specialty Holdings Limited		7.00			7-15-2034		575,000		703,918
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		719,893
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		1,950,000		1,959,750
Hub International Limited 144A		7.88			10-1-2021		3,950,000		4,137,625
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		814,835
ProAssurance Corporation		5.30			11-15-2023		750,000		819,176
Progressive Corporation ±		6.70			6-15-2067		600,000		594,000
W.R. Berkley Corporation		4.63			3-15-2022		650,000		697,016
									11,263,807

Health Care : 6.25%
Biotechnology : 0.13%
Amgen Incorporated		3.63			5-15-2022		750,000		775,072

Health Care Equipment & Supplies : 0.75%
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		207,500
Hologic Incorporated 144A		5.25			7-15-2022		670,000		698,475
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		1,425,000		1,539,000
Surgery Center Holdings Company 144A		8.88			4-15-2021		1,800,000		1,948,500
									4,393,475

Health Care Providers & Services : 4.03%
Acadia Healthcare Company Incorporated		6.50			3-1-2024		190,000		197,363
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		831,449
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		445,000		434,707
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		525,000		545,344
Express Scripts Holding Company		3.90			2-15-2022		665,000		689,495
HCA Incorporated		6.50			2-15-2020		1,875,000		2,048,438
HealthSouth Corporation		5.75			9-15-2025		575,000		576,438
Humana Incorporated		7.20			6-15-2018		750,000		803,434
Mednax Incorporated 144A		5.25			12-1-2023		475,000		490,438
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		1,475,000		1,565,344
MPT Operating Partnership LP		5.25			8-1-2026		1,250,000		1,228,125
MPT Operating Partnership LP		6.38			2-15-2022		1,075,000		1,112,625
MPT Operating Partnership LP		6.38			3-1-2024		110,000		116,188
Select Medical Corporation		6.38			6-1-2021		4,065,000		4,024,350
TeamHealth Incorporated 144A%%		6.38			2-1-2025		475,000		464,313
TeamHealth Incorporated 144A		7.25			12-15-2023		570,000		652,650
Tenet Healthcare Corporation ±		4.46			6-15-2020		2,250,000		2,278,125
Tenet Healthcare Corporation		6.00			10-1-2020		1,475,000		1,556,125


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services (continued)
Vizient Incorporated 144A		10.38	%		3-1-2024	$	3,550,000	$	4,038,125
									23,653,076

Health Care Technology : 0.90%
Change Healthcare Holdings Incorporated 144A		6.00			2-15-2021		500,000		528,750
Change Healthcare Holdings Incorporated		11.00			12-31-2019		4,400,000		4,532,000
QuintilesIMS Holdings Incorporated 144A		5.00			10-15-2026		225,000		226,499
									5,287,249

Life Sciences Tools & Services : 0.14%
Life Technologies Corporation		6.00			3-1-2020		750,000		819,221

Pharmaceuticals : 0.30%
Endo Finance LLC 144A		5.38			1-15-2023		375,000		314,063
Endo Finance LLC 144A		5.75			1-15-2022		715,000		622,944
Valeant Pharmaceuticals International Incorporated 144A		7.25			7-15-2022		75,000		63,009
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		749,497
									1,749,513

Industrials : 3.18%
Aerospace & Defense : 0.17%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		1,026,498

Airlines : 0.35%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,320,000		1,516,350
Delta Air Lines Incorporated		4.75			11-7-2021		505,677		532,857
									2,049,207

Commercial Services & Supplies : 1.55%
Advanced Disposal Services Incorporated 144A		5.63			11-15-2024		650,000		661,375
Aramark Services Incorporated		5.13			1-15-2024		120,000		125,400
Aramark Services Incorporated 144A		5.13			1-15-2024		475,000		496,375
Covanta Holding Corporation		5.88			3-1-2024		2,260,000		2,248,700
Covanta Holding Corporation		6.38			10-1-2022		1,500,000		1,546,875
Covanta Holding Corporation		7.25			12-1-2020		1,480,000		1,523,660
Penske Truck Leasing Company 144A		3.75			5-11-2017		750,000		754,853
Republic Services Incorporated		3.55			6-1-2022		750,000		779,675
The ServiceMaster Company LLC 144A		5.13			11-15-2024		925,000		936,563
									9,073,476

Construction & Engineering : 0.52%
AECOM		5.75			10-15-2022		215,000		226,556
AECOM		5.88			10-15-2024		2,610,000		2,812,275
									3,038,831

Professional Services : 0.15%
Ascent Capital Group Incorporated		4.00			7-15-2020		375,000		285,000
Verisk Analytics Incorporated		5.80			5-1-2021		530,000		589,544
									874,544

Road & Rail : 0.11%
TTX Company 144A		2.60			6-15-2020		650,000		648,489


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Trading Companies & Distributors : 0.33%
Ashtead Capital Incorporated 144A		6.50	%	7-15-2022	$	1,775,000	$	1,857,094
International Lease Finance Corporation 144A		7.13		9-1-2018		75,000		80,678
								1,937,772

Information Technology : 5.91%
Communications Equipment : 0.33%
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		1,100,000		1,172,188
Motorola Solutions Incorporated		3.75		5-15-2022		750,000		761,568
								1,933,756

Electronic Equipment, Instruments & Components : 1.36%
Jabil Circuit Incorporated		8.25		3-15-2018		5,275,000		5,621,884
L-3 Communications Corporation		4.95		2-15-2021		750,000		808,052
Zebra Technologies Corporation		7.25		10-15-2022		1,450,000		1,562,375
								7,992,311

Internet Software & Services : 0.25%
Infor Software Parent LLC		6.50		5-15-2022		550,000		564,438
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13		5-1-2021		550,000		565,125
Zayo Group LLC 144A		5.75		1-15-2027		75,000		76,688
Zayo Group LLC		6.00		4-1-2023		75,000		78,281
Zayo Group LLC		6.38		5-15-2025		175,000		184,734
								1,469,266

IT Services : 0.26%
First Data Corporation 144A		5.00		1-15-2024		750,000		757,500
First Data Corporation 144A		5.38		8-15-2023		275,000		283,250
First Data Corporation 144A		5.75		1-15-2024		320,000		329,600
First Data Corporation 144A		6.75		11-1-2020		166,000		171,603
								1,541,953

Semiconductors & Semiconductor Equipment : 0.68%
Micron Technology Incorporated 144A		5.25		8-1-2023		375,000		375,938
Micron Technology Incorporated 144A		5.25		1-15-2024		700,000		702,800
Micron Technology Incorporated		5.50		2-1-2025		1,100,000		1,105,500
Micron Technology Incorporated 144A		5.63		1-15-2026		900,000		901,350
Micron Technology Incorporated		5.88		2-15-2022		850,000		883,465
								3,969,053

Software : 0.41%
Boxer Parent Company Incorporated (PIK at 9.75%) 144A¥		9.00		10-15-2019		1,460,000		1,416,200
CA Incorporated		5.38		12-1-2019		750,000		815,938
SS&C Technologies Incorporated		5.88		7-15-2023		200,000		208,000
								2,440,138

Technology Hardware, Storage & Peripherals : 2.62%
Diamond 1 Finance Corporation/Diamond 2 Finance Corporation 144A		5.88		6-15-2021		2,825,000		2,979,861
Diamond 1 Finance Corporation/Diamond 2 Finance Corporation 144A		7.13		6-15-2024		5,400,000		5,912,228
Hewlett-Packard Company		4.05		9-15-2022		750,000		778,409
NCR Corporation		5.88		12-15-2021		230,000		240,638
NCR Corporation		6.38		12-15-2023		5,125,000		5,445,313
								15,356,449


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Materials : 1.58%
Chemicals : 0.20%
Dow Chemical Company		4.13	%	11-15-2021	$	750,000	$	793,222
Valvoline Incorporated 144A		5.50		7-15-2024		375,000		393,750
								1,186,972

Containers & Packaging : 1.38%
Ball Corporation		5.25		7-1-2025		190,000		199,557
Berry Plastics Corporation		5.13		7-15-2023		350,000		358,120
Berry Plastics Corporation		6.00		10-15-2022		215,000		227,631
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		35,000		39,550
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		600,000		611,250
Owens-Brockway Glass Container Incorporated 144A		5.88		8-15-2023		425,000		447,313
Owens-Illinois Incorporated 144A		5.38		1-15-2025		575,000		577,875
Owens-Illinois Incorporated 144A		6.38		8-15-2025		2,950,000		3,138,063
Owens-Illinois Incorporated		7.80		5-15-2018		1,295,000		1,375,938
Sealed Air Corporation 144A		5.13		12-1-2024		1,100,000		1,138,500
								8,113,797

Metals & Mining : 0.00%
Indalex Holdings Corporation (a)(i)(s)		11.50		2-1-2020		3,170,000		0

Real Estate : 4.92%
Equity REITs : 4.33%
Alexandria Real Estate Company		4.60		4-1-2022		650,000		687,863
American Tower Corporation		5.90		11-1-2021		650,000		726,341
Crown Castle International Corporation		4.88		4-15-2022		460,000		494,541
Crown Castle International Corporation		5.25		1-15-2023		95,000		103,199
DuPont Fabros Technology Incorporated LP		5.63		6-15-2023		2,975,000		3,094,000
DuPont Fabros Technology Incorporated LP		5.88		9-15-2021		4,655,000		4,864,475
Equinix Incorporated		5.88		1-15-2026		425,000		450,968
ESH Hospitality Incorporated 144A		5.25		5-1-2025		1,825,000		1,831,388
Essex Portfolio LP		3.63		8-15-2022		750,000		769,173
Health Care REIT Incorporated		5.25		1-15-2022		650,000		715,376
Iron Mountain Incorporated 144A		4.38		6-1-2021		1,175,000		1,210,250
Iron Mountain Incorporated 144A		5.38		6-1-2026		950,000		914,375
Iron Mountain Incorporated 144A		6.00		10-1-2020		230,000		240,925
Iron Mountain Incorporated		6.00		8-15-2023		2,960,000		3,137,600
Sabra Health Care Incorporated		5.38		6-1-2023		900,000		900,000
Sabra Health Care Incorporated		5.50		2-1-2021		1,100,000		1,138,500
The Geo Group Incorporated		5.13		4-1-2023		800,000		786,000
The Geo Group Incorporated		5.88		1-15-2022		1,565,000		1,602,169
The Geo Group Incorporated		5.88		10-15-2024		840,000		847,350
The Geo Group Incorporated		6.00		4-15-2026		184,000		185,380
Ventas Realty LP		4.25		3-1-2022		650,000		687,227
								25,387,100

Real Estate Management & Development : 0.59%
Onex Corporation 144A		7.75		1-15-2021		3,400,000		3,472,250

Telecommunication Services : 5.30%
Diversified Telecommunication Services : 1.72%
AT&T Incorporated		3.80		3-15-2022		750,000		768,068
CenturyLink Incorporated		5.80		3-15-2022		600,000		617,064
Citizens Communications Company		7.88		1-15-2027		355,000		299,088
Frontier Communications Corporation		8.13		10-1-2018		845,000		912,076
Frontier Communications Corporation		8.25		4-15-2017		1,040,000		1,053,000


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Diversified Telecommunication Services (continued)
Frontier Communications Corporation		8.50	%	4-15-2020	$	525,000	$	559,440
GCI Incorporated		6.75		6-1-2021		1,000,000		1,030,000
GCI Incorporated		6.88		4-15-2025		660,000		686,400
Level 3 Financing Incorporated		5.13		5-1-2023		975,000		982,313
Level 3 Financing Incorporated 144A		5.25		3-15-2026		650,000		647,563
Level 3 Financing Incorporated		5.38		8-15-2022		300,000		309,750
Level 3 Financing Incorporated		5.38		1-15-2024		700,000		708,974
Level 3 Financing Incorporated		5.38		5-1-2025		975,000		995,114
Level 3 Financing Incorporated		5.63		2-1-2023		350,000		357,875
Level 3 Financing Incorporated		6.13		1-15-2021		175,000		180,906
								10,107,631

Wireless Telecommunication Services : 3.58%
Crown Castle Towers LLC 144A		6.11		1-15-2040		750,000		813,760
MetroPCS Wireless Incorporated		6.63		11-15-2020		3,300,000		3,382,500
SBA Communications Corporation		4.88		7-15-2022		640,000		648,800
SBA Communications Corporation 144A		4.88		9-1-2024		500,000		488,050
Sprint Capital Corporation		6.88		11-15-2028		5,500,000		6,420,303
Sprint Capital Corporation		8.75		3-15-2032		625,000		717,188
Sprint Communications Incorporated		7.00		8-15-2020		225,000		240,750
T-Mobile USA Incorporated		6.00		3-1-2023		300,000		317,250
T-Mobile USA Incorporated		6.13		1-15-2022		85,000		89,888
T-Mobile USA Incorporated		6.25		4-1-2021		165,000		170,973
T-Mobile USA Incorporated		6.38		3-1-2025		825,000		892,031
T-Mobile USA Incorporated		6.46		4-28-2019		160,000		162,480
T-Mobile USA Incorporated		6.50		1-15-2024		80,000		86,208
T-Mobile USA Incorporated		6.54		4-28-2020		165,000		169,744
T-Mobile USA Incorporated		6.63		4-1-2023		655,000		696,069
T-Mobile USA Incorporated		6.63		4-28-2021		925,000		964,313
T-Mobile USA Incorporated		6.73		4-28-2022		3,490,000		3,629,600
T-Mobile USA Incorporated		6.84		4-28-2023		1,060,000		1,131,550
								21,021,457

Utilities : 2.83%
Electric Utilities : 0.13%
Great Plains Energy Incorporated		4.85		6-1-2021		750,000		802,769

Independent Power & Renewable Electricity Producers : 2.46%
Calpine Corporation 144A		6.00		1-15-2022		515,000		537,531
Calpine Corporation 144A		7.88		1-15-2023		416,000		433,680
NSG Holdings LLC 144A		7.75		12-15-2025		2,253,207		2,439,096
Pattern Energy Group Incorporated 144A		5.88		2-1-2024		3,450,000		3,519,000
TerraForm Power Operating LLC 144A		6.38		2-1-2023		5,425,000		5,574,188
TerraForm Power Operating LLC 144A		6.63		6-15-2025		1,850,000		1,924,000
								14,427,495

Multi-Utilities : 0.24%
Ameren Illinois Company		9.75		11-15-2018		500,000		568,842
CMS Energy Corporation		5.05		3-15-2022		750,000		821,522
								1,390,364

Total Corporate Bonds and Notes (Cost $398,563,258)								412,992,068


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Foreign Corporate Bonds and Notes @: 1.82%
Consumer Discretionary : 0.13%
Auto Components : 0.02%
HP Pelzer Holding GmbH (EUR)		7.50	%		7-15-2021		100,000	$	114,697

Internet & Direct Marketing Retail : 0.04%
Priceline Group Incorporated (EUR)		2.38			9-23-2024		200,000		226,653

Media : 0.07%
Virgin Media Incorporated 144A (GBP)		5.50			9-15-2024		325,000		413,000

Consumer Staples : 0.16%
Food Products : 0.16%
BRF SA 144A (BRL)		7.75			5-22-2018		3,100,000		925,986

Energy : 0.22%
Energy Equipment & Services : 0.02%
Senvion Holding (EUR)		6.63			11-15-2020		100,000		112,354

Oil, Gas & Consumable Fuels : 0.20%
Petroleos Mexicanos 144A (MXN)		7.19			9-12-2024		28,200,000		1,152,997

Financials : 0.98%
Banks : 0.94%
Eurofima (AUD)		6.25			12-28-2018		2,450,000		1,994,243
European Investment Bank (ZAR)		9.00			3-31-2021		17,400,000		1,316,512
KfW (AUD)		5.00			3-19-2024		1,300,000		1,105,603
Landwirtschaftliche Rentenbank (ZAR)		8.25			5-23-2022		15,000,000		1,099,826
									5,516,184

Diversified Financial Services : 0.04%
AA Bond Company Limited (GBP)		4.25			7-31-2043		200,000		267,389

Information Technology : 0.03%
Semiconductors & Semiconductor Equipment : 0.03%
ASML Holding NV (EUR)		1.38			7-7-2026		175,000		186,072

Materials : 0.05%
Chemicals : 0.05%
Albemarle Corporation (EUR)		1.88			12-8-2021		246,000		278,722

Telecommunication Services : 0.25%
Diversified Telecommunication Services : 0.03%
Verizon Communications Incorporated (EUR)		3.25			2-17-2026		150,000		184,467

Wireless Telecommunication Services : 0.22%
America Movil SAB de CV (MXN)		7.13			12-9-2024		28,850,000		1,296,303

Total Foreign Corporate Bonds and Notes (Cost $14,248,970)									10,674,824

Foreign Government Bonds @: 23.49%
Brazil (BRL)		10.00			1-1-2025		32,800,000		10,048,004
Brazil (BRL)		10.00			1-1-2027		51,800,000		15,751,435
Colombia (COP)		7.00			9-11-2019		18,500,000,000		6,418,240


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Foreign Government Bonds @ (continued)
Colombia (COP)		7.00	%		5-4-2022		18,650,000,000	$	6,509,317
Colombia (COP)		7.50			8-26-2026		22,725,000,000		8,111,296
Colombia (COP)		7.75			4-14-2021		5,250,000,000		1,880,759
Hungary (HUF)		6.75			11-24-2017		1,305,000,000		4,782,779
Indonesia (IDR)		7.88			4-15-2019		133,640,000,000		10,198,776
Indonesia (IDR)		8.38			9-15-2026		110,000,000,000		8,639,529
Indonesia (IDR)		10.00			7-15-2017		50,000,000,000		3,803,692
Korea (KRW)		5.25			3-10-2027		2,830,000,000		3,118,097
Malaysia (MYR)		3.66			10-15-2020		20,700,000		4,687,392
Malaysia (MYR)		4.18			7-15-2024		19,850,000		4,511,679
Mexico (MXN)		4.75			6-14-2018		113,800,000		5,322,070
Mexico (MXN)		5.75			3-5-2026		152,000,000		6,486,242
Mexico (MXN)		6.50			6-10-2021		127,285,000		5,968,597
Mexico (MXN)		10.00			12-5-2024		62,120,000		3,445,812
Mexico (MXN)		10.00			12-5-2024		14,100,000		782,131
Queensland Treasury (AUD)		5.75			7-22-2024		4,100,000		3,711,454
Republic of South Africa (ZAR)		7.75			2-28-2023		103,000,000		7,396,891
Republic of South Africa (ZAR)		8.00			12-21-2018		129,000,000		9,601,046
Republic of South Africa (ZAR)		10.50			12-21-2026		40,000,000		3,292,022
State of New South Wales Australia (AUD)		5.00			8-20-2024		3,900,000		3,417,285
Total Foreign Government Bonds (Cost $157,136,496)									137,884,545

Loans : 19.25%
Consumer Discretionary : 6.80%
Auto Components : 0.40%
Allison Transmission Incorporated ±		3.28			9-23-2022	$	1,899,986		1,917,257
Federal-Mogul Holdings Corporation ±		4.00			4-15-2018		422,832		421,178
									2,338,435

Distributors : 0.51%
Spin Holdco Incorporated ±		4.27			11-14-2019		2,979,742		2,966,452

Food & Staples Retailing : 0.08%
TKC Holdings Incorporated ±%%<		0.00			1-13-2023		500,000		497,500

Hotels, Restaurants & Leisure : 1.21%
CCM Merger Incorporated ±		4.03			8-8-2021		583,030		587,403
Four Seasons Holdings Incorporated ±		4.00			11-30-2023		910,660		921,761
La Quinta Intermediate Holdings LLC ±		3.77			4-14-2021		742,462		745,247
Montreign Operating Company ±%%<		9.31			12-7-2022		3,775,000		3,809,617
Pinnacle Entertainment Incorporated ±		3.78			4-28-2023		1,008,827		1,019,753
									7,083,781

Household Products : 0.40%
Anchor Glass Container Corporation ±		4.25			12-7-2023		600,000		605,250
Anchor Glass Container Corporation ±		8.75			12-7-2024		1,300,000		1,317,329
The ServiceMaster Company LLC ±		3.28			11-8-2023		400,000		401,832
									2,324,411

Internet & Direct Marketing Retail : 1.10%
Ancestry.com Incorporated ±		5.25			10-19-2023		3,005,000		3,036,943
Ancestry.com Incorporated ±		9.25			10-19-2024		3,325,000		3,403,969
									6,440,912


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Leisure Products : 0.35%
AMF Bowling Centers Incorporated ±		6.00	%		8-17-2023	$	1,707,646	$	1,710,857
Life Time Fitness Incorporated ±		4.25			6-10-2022		370,240		367,570
									2,078,427

Media : 2.29%
Altice US Finance I Corporation ±		3.78			1-15-2025		519,084		524,706
CBS Radio Incorporated ±		4.50			10-17-2023		1,891,626		1,907,005
Charter Communications Operating LLC ±		3.03			1-15-2024		913,100		916,013
Entercom Radio LLC ±%%<		4.50			11-1-2023		1,093,750		1,104,228
Learfield Communications Incorporated ±		4.25			11-17-2023		3,500,000		3,526,250
Mission Broadcasting Incorporated ±%%<		0.00			1-17-2024		31,974		32,360
Nexstar Broadcasting Group Incorporated ±%%<		0.00			1-17-2024		347,026		351,218
Salem Communications Corporation ±		3.50			3-16-2020		5,250,000		5,105,625
									13,467,405

Multiline Retail : 0.03%
Doosan Infracore International Incorporated ±		4.50			5-28-2021		160,346		162,251

Specialty Retail : 0.43%
Focus Brands Incorporated ±%%<		5.00			10-3-2023		2,471,675		2,507,712

Consumer Staples : 0.28%
Food Products : 0.28%
B&G Foods Incorporated ±		3.77			11-2-2022		640,110		645,711
Pinnacle Foods Incorporated ±%%<		0.00			1-27-2024		497,500		498,435
Pinnacle Foods Incorporated ±		3.53			1-13-2023		247,500		247,577
Prestige Brands Incorporated ±		3.52			1-26-2024		234,628		236,681
									1,628,404

Energy : 1.16%
Energy Equipment & Services : 0.80%
Hummel Station LLC ±		7.00			10-27-2022		4,929,434		4,732,256

Oil, Gas & Consumable Fuels : 0.36%
Chesapeake Energy Corporation ±		8.50			8-23-2021		450,000		491,999
Veresen Midstream LP ±		5.25			3-31-2022		1,318,291		1,332,305
Western Refining Incorporated ±		5.25			11-12-2020		273,590		274,616
									2,098,920

Financials : 1.32%
Capital Markets : 0.15%
American Beacon Advisors Incorporated ±		9.79			3-3-2023		440,000		431,200
Neptune Finco Corporation ±		3.77			10-11-2024		459,375		462,246
									893,446

Consumer Finance : 0.03%
KAR Auction Services Incorporated ±		4.50			3-9-2023		198,500		200,795

Diversified Financial Services : 0.70%
American Beacon Advisors Incorporated ±		5.25			4-30-2022		2,318,156		2,323,952
Ipreo Holdings LLC ±		4.25			8-6-2021		141,754		138,387
LPL Holdings Incorporated ±		4.81			11-20-2022		1,187,803		1,190,772


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services (continued)
Nielsen Finance LLC ±		3.27	%		10-4-2023	$	473,813	$	476,774
									4,129,885

Insurance : 0.44%
Alliant Holdings I LLC ±%%<		0.00			8-12-2022		1,400,000		1,405,754
Hub International Limited ±		4.00			10-2-2020		269,971		270,856
Solera Holdings Incorporated ±		5.75			3-3-2023		868,438		877,243
									2,553,853

Health Care : 2.48%
Health Care Equipment & Supplies : 0.58%
DJO Finance LLC ±		4.25			6-8-2020		561,450		546,852
Kinetic Concepts Incorporated ±		5.00			11-4-2020		1,529,804		1,530,767
Kinetic Concepts Incorporated ±%%<		0.00			1-25-2024		1,336,239		1,329,557
									3,407,176

Health Care Providers & Services : 1.51%
Acadia Healthcare Company Incorporated ±		3.78			2-11-2022		156,800		158,172
Acadia Healthcare Company Incorporated ±		3.78			2-16-2023		940,500		948,334
Community Health Systems Incorporated ±		4.00			1-27-2021		909,267		859,066
MPH Acquisition Holdings LLC ±		5.00			6-7-2023		510,375		517,499
Press Ganey Holdings Incorporated ±		4.25			10-21-2023		1,500,000		1,502,820
Press Ganey Holdings Incorporated ±		8.25			10-21-2024		1,150,000		1,168,688
Surgery Center Holdings Incorporated ±		4.75			11-3-2020		1,102,506		1,114,909
Surgical Care Affiliates Incorporated ±		3.75			3-17-2022		773,063		774,995
TeamHealth Incorporated ±%%<		0.00			1-17-2024		750,000		748,598
TeamHealth Incorporated ±		3.78			11-23-2022		519,760		517,811
Vizient Incorporated ±		5.00			2-13-2023		571,904		579,053
									8,889,945

Health Care Technology : 0.19%
Alere Incorporated ±		4.25			6-18-2022		100,974		100,990
Emdeon Incorporated ±		3.75			11-2-2018		984,655		985,275
									1,086,265

Life Sciences Tools & Services : 0.08%
Inventiv Health Incorporated ±		4.75			11-9-2023		475,000		478,957

Pharmaceuticals : 0.12%
Endo Finance LLC ±		3.81			9-26-2022		297,000		296,011
Valeant Pharmaceuticals International Incorporated ±		5.50			4-1-2022		421,910		423,547
									719,558

Industrials : 3.14%
Aerospace & Defense : 0.51%
TransDigm Incorporated ±		3.96			2-28-2020		2,987,830		2,980,360

Commercial Services & Supplies : 2.03%
ADS Waste Holdings Incorporated ±%%<		3.50			11-10-2023		1,233,636		1,244,653
Advantage Sales & Marketing LLC ±		7.50			7-25-2022		1,250,000		1,212,500
Avantor Performance Materials Incorporated ±		6.00			6-21-2022		1,707,995		1,729,345
Casella Waste Systems Incorporated ±		4.00			10-17-2023		1,975,000		1,994,750
Columbus McKinnon Corporation ±%%<		0.00			1-13-2024		1,000,000		1,006,250
Gates Global Limited ±		4.25			7-6-2021		842,898		839,737


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies (continued)
GFL Environmental Incorporated ±		3.75	%		9-29-2023	$	174,563	$	175,109
McJunkin Red Man Corporation ±		5.00			11-8-2019		680,600		682,587
Sedgwick Claims Management Services Incorporated ±		3.75			3-1-2021		524,219		525,965
WASH Multifamily Laundry Systems LLC ±		4.25			5-14-2022		1,081,283		1,086,019
WASH Multifamily Laundry Systems LLC ±		4.25			5-14-2022		189,365		190,194
WASH Multifamily Laundry Systems LLC ±		8.00			5-12-2023		17,885		17,706
WASH Multifamily Laundry Systems LLC ±(i)		8.00			5-14-2023		102,115		101,094
Waste Industries USA Incorporated ±		3.53			2-27-2020		1,132,798		1,135,981
									11,941,890

Machinery : 0.11%
Onex Wizard Acquisition Company ±		4.00			3-13-2022		611,235		615,929

Transportation Infrastructure : 0.49%
OSG Bulk Ships Incorporated ±		5.25			8-5-2019		71,190		70,033
OSG International Incorporated ±		5.75			8-5-2019		2,853,071		2,803,143
									2,873,176

Information Technology : 1.12%
Internet Software & Services : 0.43%
Black Knight InfoServ LLC ±		3.81			5-27-2022		493,119		496,201
CCC Information Services Incorporated ±		4.00			12-20-2019		576,962		578,047
Infor US Incorporated ±		3.75			6-3-2020		683,113		683,004
Sophia Holding Finance LP ±		4.25			9-30-2022		148,866		149,052
VF Holding Corporation ±		4.25			6-30-2023		448,875		451,680
Zayo Group LLC ±%%<		0.00			1-12-2024		48,750		49,136
Zayo Group LLC ±		3.50			1-19-2024		101,250		102,052
									2,509,172

Semiconductors & Semiconductor Equipment : 0.10%
Micron Technology Incorporated ±		4.53			4-26-2022		348,250		352,850
NXP Semiconductors NV ±		3.24			12-7-2020		239,340		240,346
									593,196

Software : 0.10%
SS&C Technologies Incorporated ±		4.03			7-8-2022		577,276		582,536

Technology Hardware, Storage & Peripherals : 0.49%
Dell Incorporated ±		4.03			9-7-2023		2,493,750		2,504,348
Peak 10 Incorporated ±(i)		8.28			6-17-2022		430,000		404,200
									2,908,548

Materials : 0.43%
Containers & Packaging : 0.43%
Reynolds Group Holdings Incorporated ±		4.25			2-5-2023		2,493,750		2,499,735

Real Estate : 1.21%
Equity REITs : 0.51%
ESH Hospitality Incorporated ±%%<		3.78			8-30-2023		1,299,250		1,303,888
MGM Growth Properties LLC ±		3.53			4-25-2023		322,435		325,028


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Equity REITs (continued)
The Geo Group Incorporated ±		3.28	%	4-3-2020	$	1,398,057	$	1,382,916
								3,011,832

Real Estate Management & Development : 0.70%
Capital Automotive LP ±		4.00		4-10-2019		2,209,126		2,220,857
Capital Automotive LP ±		6.00		4-30-2020		1,849,333		1,861,668
								4,082,525

Telecommunication Services : 1.21%
Diversified Telecommunication Services : 0.73%
Level 3 Financing Incorporated ±		4.00		1-15-2020		1,700,000		1,720,825
Telesat Canada ±		4.78		11-17-2023		2,531,725		2,531,725
								4,252,550

Wireless Telecommunication Services : 0.48%
LTS Buyer LLC ±		4.25		4-13-2020		1,838,841		1,848,035
Syniverse Holdings Incorporated ±		4.00		4-23-2019		165,800		148,723
Syniverse Holdings Incorporated ±		4.04		4-23-2019		937,955		842,405
								2,839,163

Utilities : 0.10%

Electric Utilities : 0.10%
Texas Competitive Electric Holdings Company LLC ±		4.02		12-14-2023		575,000		580,750

Total Loans (Cost $112,459,987)								112,958,108

Municipal Obligations : 0.05%
New York : 0.05%
Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)		5.00		4-1-2018		270,000		268,294

Total Municipal Obligations (Cost $270,000)								268,294

Non-Agency Mortgage-Backed Securities : 5.05%
Argent Securities Incorporated Series 2004-W5 Class AV3B ±		1.66		4-25-2034		59,834		56,554
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18		3-25-2033		217,210		216,688
Asset-Backed Securities Corporation Home Equity Series 2002-HE3 Class M2 ±		3.09		10-15-2032		53,352		53,405
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±		5.87		7-10-2044		1,340,000		961,560
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48		1-15-2049		503,616		503,916
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±		6.28		2-10-2051		550,000		569,513
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50		9-25-2035		249,457		257,973
Banc of America Funding Corporation Series 2009 Class R6-3A1 144A±		2.54		1-26-2037		5,056		5,048
Banc of America Mortgage Securities Series 2003 Class 1A1 ±		3.06		4-25-2033		331,449		308,870
Banc of America Mortgage Securities Series 2003 Class A-3A1 ±		3.33		2-25-2033		55,583		54,133
Bear Stearns Asset Backed Securities Series 2002-2 Class A1 ±		1.43		10-25-2032		258,818		253,496
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±		5.89		6-11-2050		418,000		426,432
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AMFL 144A±		1.34		6-11-2050		685,000		675,601
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±		6.08		6-11-2050		100,000		102,786
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AMA ±		6.09		6-11-2050		715,000		735,551
Centex Home Equity Series 2002-A Class AF6		5.54		1-25-2032		49,610		49,535


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Centex Home Equity Series 2002-D Class AF6 ±		4.66	%		12-25-2032	$	17,788	$	17,944
Centex Home Equity Series 2004-B Class AF6		4.69			3-25-2034		169,279		173,600
CFCRE Commercial Mortgage Trust Series 2015-RUM Class A 144A±		2.47			7-15-2030		480,000		480,663
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±		4.88			9-10-2045		1,000,000		1,048,852
Citigroup Commercial Mortgage Trust Series 2015 Class A 144A±		1.92			9-15-2027		595,000		593,689
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±		1.52			12-25-2033		40,466		39,770
Commercial Mortgage Trust Series 2007-C9 144A±		1.40			12-10-2049		940,000		932,267
Commercial Mortgage Trust Series 2012-CR2 Class C ±		4.85			8-15-2045		1,000,000		1,052,854
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.37			2-25-2034		95,987		97,482
Countrywide Home Loans Series 2003-48 Class 2A2 ±		3.25			10-25-2033		84,161		82,596
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±		2.52			9-25-2032		556,486		518,995
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		3.21			6-25-2033		151,000		149,039
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±		2.86			3-25-2033		30,327		29,824
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±		1.43			4-25-2036		72,119		71,981
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62			7-25-2034		423,501		425,228
First Horizon Mortgage Pass-Through Series 2004-AR1 Class 1A1 ±		2.77			2-25-2034		407,334		402,329
First Horizon Mortgage Pass-Through Series 2004-AR4 Class 3A1 ±		3.01			8-25-2034		8,776		8,586
Global Mortgage Securitization Limited Series 2004-A Class A2 144A±		1.08			11-25-2032		138,350		128,266
GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5		5.24			7-25-2034		57,256		59,340
Great Wolf Trust Series 2015 Class A 144A±		2.22			5-15-2034		1,015,000		1,022,293
Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4		5.74			12-10-2049		366,066		369,871
GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±		5.79			8-10-2045		524,660		525,347
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±		1.43			8-10-2043		5,311,718		214,576
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±		2.37			5-10-2045		4,015,853		306,137
GS Mortgage Securities Trust Series 2014-GSFLC Class C 144A±		3.02			7-15-2031		1,000,000		992,222
GS Mortgage Securities Trust Series 2014 Class C 144A		3.79			1-10-2031		1,000,000		989,158
GS Mortgage Securities Trust Series 2016-ICE2 Class A 144A±		2.70			2-15-2033		588,000		593,888
GSAA Home Equity Trust Series 2004-5 Class AF5 ±		4.73			6-25-2034		6,354		6,378
GSCCRE Commercial Mortgage Trust Series 2015-HULA Class C 144A±		3.45			8-15-2032		1,000,000		1,005,864
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		1.42			4-25-2035		7,619		7,566
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 144A±		1.07			3-25-2035		104,960		103,362
GSMPS Mortgage Loan Trust Series 2006-SEA1 Class A 144A±		1.07			5-25-2036		10,953		10,942
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±		5.47			6-12-2047		875,000		880,600
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL ±		0.83			6-12-2047		750,000		737,325
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±		5.46			1-15-2049		550,000		548,559
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-INN Class A 144A±		1.69			6-15-2029		521,000		521,000
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-FL7 Class A 144A±		1.95			5-15-2028		225,224		224,876
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		3.12			7-25-2034		70,079		68,111
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		3.10			7-25-2034		63,536		61,688
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		3.27			6-25-2035		238,596		242,344
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±		6.00			2-27-2037		24,011		24,324
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±		6.00			2-27-2037		63,035		63,053
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±		3.31			12-25-2033		420,112		416,461
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±		3.36			1-25-2034		16,500		16,177
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±		3.04			11-21-2034		21,162		21,622
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50			1-25-2020		31,749		32,458
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70			9-12-2049		635,508		645,278


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±		5.25	%	8-25-2036	$	49,457	$	50,584
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±		5.83		6-12-2050		597,198		601,376
Mesa Trust Asset Backed Certificates Series 2001-5 Class A 144A±		1.56		12-25-2031		14,720		13,692
Mid State Trust Series 11 Class A1		4.86		7-15-2038		219,500		232,748
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		1.96		1-25-2029		89,737		84,572
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±		1.72		8-15-2045		4,802,250		275,887
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		1.82		12-27-2033		471,570		459,256
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AJ ±		5.79		7-12-2044		13,840		13,829
Morgan Stanley Capital I Trust Series 2007-HQ13 Class A3		5.57		12-15-2044		1,090,069		1,107,332
Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B 144A±		5.79		8-15-2045		615,000		616,211
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±		5.44		3-15-2045		900,000		957,946
Navient SLM Studen Loan Series 2005-B Class A3 ±		1.23		12-15-2023		90,000		88,126
New Century Home Equity Loan Trust Series 2004-3 Class M1 ±		1.70		11-25-2034		1,165,049		1,058,374
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ ±		1.35		3-25-2035		62,015		61,937
Northstar Education Finance Incorporated Series 2004-2 Class A3 ±		1.21		7-30-2018		23,005		22,987
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		2.95		5-25-2035		34,710		33,586
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±		3.52		12-26-2035		16,256		16,293
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88		2-25-2035		273,985		274,263
Residential Funding Mortgage Securities Trust Series 03-S12 Class 2A1		4.00		12-25-2032		52,144		52,135
Saxon Asset Securities Trust Series 2002-1 Class AF5		6.35		12-25-2030		139,735		142,246
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		485,165		490,474
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		1.54		4-20-2033		16,832		15,898
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±		3.10		3-25-2034		62,293		61,403
Structured Asset Securities Corporation Series 1998-2 Class A ±		1.29		2-25-2028		219,468		213,368
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		1.06		10-25-2027		59,820		58,490
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		1.91		11-25-2033		173,407		165,044
Vendee Mortgage Trust Series 2003-2 Class IO ± (c)		0.75		5-15-2033		5,054,639		141,819
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50		7-25-2034		154,713		164,930
Total Non-Agency Mortgage-Backed Securities (Cost $29,912,407)								29,670,652

Yankee Corporate Bonds and Notes : 9.67%
Consumer Discretionary : 0.49%
Media : 0.49%
Grupo Televisa SAB		6.00		5-15-2018		750,000		787,157
Myriad International Holdings BV		6.00		7-18-2020		500,000		540,420
Myriad International Holdings BV 144A		6.38		7-28-2017		750,000		764,408
WPP Finance 2010		3.63		9-7-2022		750,000		765,050
								2,857,035

Consumer Staples : 0.27%
Beverages : 0.14%
Pernod Ricard SA 144A		4.45		1-15-2022		760,000		808,904

Tobacco : 0.13%
BAT International Finance plc 144A		3.25		6-7-2022		750,000		755,822

Energy : 2.14%
Energy Equipment & Services : 0.35%
Ensco plc		5.75		10-1-2044		2,470,000		1,982,175
Trinidad Drilling Limited 144A%%		6.63		2-15-2025		75,000		76,688
								2,058,863


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels : 1.79%
Baytex Energy Corporation 144A		5.13	%		6-1-2021	$	2,114,000	$	1,955,450
Baytex Energy Corporation 144A		5.63			6-1-2024		1,225,000		1,127,000
Griffin Coal Mining Company Limited 144A(a)(i)(s)		9.50			12-1-2016		1,685,411		6,742
Griffin Coal Mining Company Limited (a)(i)(s)		9.50			12-1-2016		137,792		551
Petrobras International Finance Company		5.38			1-27-2021		670,000		675,025
Petroleos Mexicanos		4.88			1-24-2022		750,000		752,850
Teekay Corporation		8.50			1-15-2020		5,625,000		5,540,625
Woodside Finance Limited 144A		8.75			3-1-2019		405,000		455,414
									10,513,657

Financials : 1.07%
Banks : 0.87%
ABN AMRO Bank NV 144A		4.80			4-18-2026		750,000		767,552
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		668,537
Corporación Andina de Fomento		4.38			6-15-2022		958,000		1,020,423
Export Import Bank of Korea		5.00			4-11-2022		750,000		827,120
Macquarie Bank Limited 144A		5.00			2-22-2017		750,000		751,682
Nielsen Holding and Finance BV 144A		5.00			2-1-2025		625,000		621,094
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		415,000		430,563
Preferred Term Securities XII Limited (a)(i)(s)		0.00			12-24-2033		635,000		0
									5,086,971

Diversified Financial Services : 0.20%
GE Capital International Funding Company		2.34			11-15-2020		527,000		528,476
Tyco Electronics Group SA		3.50			2-3-2022		625,000		643,861
									1,172,337

Health Care : 1.86%
Pharmaceuticals : 1.86%
Mallinckrodt plc 144A		5.50			4-15-2025		500,000		430,625
Mallinckrodt plc 144A		5.63			10-15-2023		275,000		243,719
Perrigo Finance plc		3.90			12-15-2024		1,000,000		977,974
Valeant Pharmaceuticals International Incorporated 144A		5.63			12-1-2021		700,000		553,000
Valeant Pharmaceuticals International Incorporated 144A		5.88			5-15-2023		2,220,000		1,689,975
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		6,300,000		4,717,125
Valeant Pharmaceuticals International Incorporated 144A		6.38			10-15-2020		1,425,000		1,252,219
Valeant Pharmaceuticals International Incorporated 144A		6.75			8-15-2021		425,000		358,594
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		785,000		681,969
									10,905,200

Industrials : 1.15%
Building Products : 0.04%
Allegion plc		5.88			9-15-2023		210,000		223,650

Commercial Services & Supplies : 0.93%
GFL Environmental Incorporated 144A		7.88			4-1-2020		2,825,000		2,941,531
GFL Environmental Incorporated 144A		9.88			2-1-2021		500,000		543,750
Ritchie Brothers Auctioneers Incorporated 144A		5.38			1-15-2025		1,975,000		2,012,031
									5,497,312

Machinery : 0.04%
Sensata Technologies BV 144A		5.00			10-1-2025		235,000		236,029


Portfolio of investments — January 31, 2017 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name			Interest rate			Maturity date	Principal		Value
Road & Rail : 0.14%
Canadian Pacific Railway Company				4.50	%	1-15-2022	$	750,000	$	806,564

Information Technology : 0.13%
Communications Equipment : 0.13%
Ericsson LM				4.13		5-15-2022		750,000		757,904

Materials : 0.76%
Containers & Packaging : 0.34%
Ardagh Packaging Finance plc 144A				6.00		2-15-2025		1,200,000		1,207,500
Ardagh Packaging Finance plc 144A				7.25		5-15-2024		725,000		776,656
										1,984,156

Metals & Mining : 0.42%
ArcelorMittal SA				6.13		6-1-2025		275,000		302,330
Glencore Finance Canada Limited 144A				4.25		10-25-2022		750,000		778,185
Hudbay Minerals Incorporated 144A				7.25		1-15-2023		200,000		211,500
Hudbay Minerals Incorporated 144A				7.63		1-15-2025		200,000		214,000
Novelis Corporation 144A				6.25		8-15-2024		200,000		211,250
Vale Overseas Limited				4.38		1-11-2022		750,000		756,563
										2,473,828

Telecommunication Services : 1.69%
Diversified Telecommunication Services : 1.59%
Intelsat Jackson Holdings SA				5.50		8-1-2023		6,775,000		4,742,500
Intelsat Jackson Holdings SA				7.25		4-1-2019		1,675,000		1,439,453
Intelsat Luxembourg SA				7.75		6-1-2021		1,445,000		502,138
Intelsat Luxembourg SA				8.13		6-1-2023		5,815,000		1,933,488
Qtel International Finance Limited				5.00		10-19-2025		300,000		325,500
Virgin Media Finance plc 144A				6.38		4-15-2023		365,000		383,250
										9,326,329

Wireless Telecommunication Services : 0.10%
Globo Communicacoes Participacoes SA 144A				4.88		4-11-2022		595,000		604,669

Utilities : 0.11%
Electric Utilities : 0.11%
Comision Federal de Electricidad 144A				4.88		5-26-2021		650,000		671,125

Total Yankee Corporate Bonds and Notes (Cost $65,191,396)										56,740,355

			Yield				Shares
Short-Term Investments : 5.40%
Investment Companies : 5.40%
Wells Fargo Government Money Market Fund Select Class (l)(u)##				0.46				31,673,405		31,673,405

Total Short-Term Investments (Cost $31,673,405)										31,673,405

Total investments in securities (Cost $847,031,033)*	138.52	%								813,020,269
Other assets and liabilities, net	(38.52	)								(226,079,006	)

Total net assets	100.00	%							$	586,941,263


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2017 (unaudited)

±	Variable rate investment. The rate shown is the rate in effect at period end.

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.

(c)

Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

†	Non-income-earning security

(i)

Illiquid security

¥	A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.

(s)

The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.

%%	The security is issued on a when-issued basis.

(a)

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

@	Foreign bond principal is denominated in the local currency of the issuer.

<	All or a portion of the position represents an unfunded loan commitment.

(l)

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

(u)

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

##	All or a portion of this security is segregated for when-issued and/or unfunded loans.

*	Cost for federal income tax purposes is $854,498,691 and unrealized gains (losses) consists of:

Gross unrealized gains $26,057,969

Gross unrealized losses (65,507,231)

Net unrealized losses $(39,449,262)

Abbreviations:

AUD

Australian dollar

BRL

Brazilian real

COP

Colombian peso

EUR

Euro

FHLMC

Federal Home Loan Mortgage Corporation

FNMA

Federal National Mortgage Association

GBP

Great British pound

GNMA

Government National Mortgage Association

HUF

Hungarian forint

IDR

Indonesian rupiah

KRW

Republic of Korea won

LLC

Limited liability company

LP	Limited partnership

MXN

Mexican peso

MYR

Malaysian ringgit

plc

Public limited company

REIT

Real estate investment trust

ZAR

South African rand

Wells Fargo Multi-Sector Income Fund (the “Fund”)

Notes to Portfolio of investments – January 31, 2017 (unaudited)

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation under unusual or unexpected circumstances.

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

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

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

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 of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

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.

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.

Loans

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.

As of January 31, 2017, the Fund had unfunded loan commitments of $14,199,743.

Fair valuation measurements

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


Level 1 –		quoted prices in active markets for identical securities

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

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

The inputs or methodologies used for valuing 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 January 31, 2017:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	13,044,549	$	0	$	13,044,549
Asset-backed securities		0		587,509		0		587,509
Common stocks
Energy		513,019		0		0		513,019
Materials		839		0		0		839
Utilities		5,306,749		0		0		5,306,749
Corporate bonds and notes		0		412,992,068		0		412,992,068
Foreign corporate bonds and notes		0		10,674,824		0		10,674,824
Foreign government bonds		0		137,884,545		0		137,884,545
Loans		0		91,456,004		21,502,104		112,958,108
Municipal obligations		0		268,294		0		268,294
Non-agency mortgage-backed securities		0		30,376,005		0		30,376,005
Yankee corporate bonds and notes		0		56,733,062		7,293		56,740,355
Short-term investments
Investment companies		31,673,405		0		0		31,673,405

Total assets	$	37,494,012	$	754,016,860	$	21,509,397	$	813,020,269

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At January 31, 2017, the Fund did not have any transfers between Level 1 and Level 2.

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


	Loans			Yankee corporate bonds and notes			Total
Balance as of October 31, 2016	$	5,626,538		$	7,293		$	5,633,831
Accrued discounts (premiums)		3,159			17,712			20,871
Realized gains (losses)		(10,658	)		0			(10,658	)
Change in unrealized gains (losses)		58,602			(17,712	)		40,890
Purchases		10,967,156			0			10,967,156
Sales		(584,635	)		0			(584,635	)


Transfers into Level 3		10,070,882			0			10,070,882
Transfers out of Level 3		(4,628,940	)		0			(4,628,940	)

Balance as of January 31, 2017	$	21,502,104		$	7,293		$	21,509,397

Change in unrealized gains (losses) relating to securities still held at January 31, 2017	$	11,523		$	(17,712	)	$	(6,189	)

The loan obligations in the Level 3 table were valued using indicative broker quotes. These indicative broker quotes are considered Level 3 inputs. Quantitative unobservable inputs used by the brokers are often proprietary and not provided to the Fund and therefore the disclosure that would address these inputs is not included above.

The Yankee corporate bonds and notes obligations in the Level 3 table represents two positions which were valued based on an analysis of the expected final distribution available to bondholders from asset sales.

ITEM 2. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Multi-Sector Income Fund (the “Fund”) 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 Fund 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 Fund’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

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 Multi-Sector Income Fund

By:		/s/ Andrew Owen

		Andrew Owen President

Date: March 24, 2017

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


Wells Fargo Multi-Sector Income Fund

By:		/s/ Andrew Owen

		Andrew Owen President

Date: March 24, 2017

By:		/s/ Jeremy DePalma

		Jeremy DePalma Treasurer

Date: March 24, 2017