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, 2016

ITEM 1. INVESTMENTS


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Agency Securities : 2.70%
FHLMC ±		4.47	%		9-1-2032	$	1,221,749	$	1,298,813
FHLMC		8.50			7-1-2028		55,291		68,409
FHLMC		8.50			3-1-2030		33,813		34,436
FHLMC Series 1383 ±		2.51			2-1-2037		405,456		429,941
FHLMC Series 196 Class A ±		1.23			12-15-2021		29,357		29,699
FHLMC Series 2011-K16 Class B ±144A		4.75			11-25-2046		1,000,000		1,081,628
FHLMC Series 2011-K701 Class B ±144A		4.29			7-25-2048		165,000		169,869
FHLMC Series 2011-K702 Class B ±144A		4.77			4-25-2044		740,000		774,534
FHLMC Series 2012-K17 Class B ±144A		4.35			12-25-2044		675,000		715,751
FHLMC Series 2012-K18 Class B ±144A		4.25			1-25-2045		810,000		852,225
FHLMC Series 2012-K501 Class C ±144A		3.52			11-25-2046		800,000		803,102
FHLMC Series 2012-K705 Class B ±144A		4.16			9-25-2044		1,000,000		1,035,354
FHLMC Series 2012-K706 Class B ±144A		4.03			11-25-2044		500,000		517,763
FHLMC Series 2012-K706 Class C ±144A		4.03			11-25-2044		805,000		834,085
FHLMC Series 2012-K707 Class B ±144A		3.88			1-25-2047		930,000		958,621
FHLMC Series 2012-K709 Class B ±144A		3.87			4-25-2045		1,000,000		1,026,059
FHLMC Series 2012-K711 Class B ±144A		3.56			8-25-2045		264,000		270,769
FHLMC Series 2013-K30 Class B ±144A		3.67			6-25-2045		700,000		714,591
FHLMC Series 2013-K713 Class B ±144A		3.16			4-25-2046		1,000,000		1,012,384
FHLMC Series 2390 Class FD ±		0.88			12-15-2031		26,815		26,862
FHLMC Series 2567 Class FH ±		0.83			2-15-2033		82,374		83,212
FHLMC Series K007 Class X1 ±(c)		1.33			4-25-2020		948,400		33,803
FHLMC Series K016 Class X1 ±(c)		1.71			10-25-2021		377,348		26,988
FHLMC Series K020 Class X1 ±(c)		1.59			5-25-2022		6,710,511		501,948
FNMA ±		2.09			9-1-2037		506,386		534,377
FNMA		6.00			4-1-2033		65,871		68,810
FNMA		6.50			11-1-2032		58,632		61,606
FNMA		7.50			7-1-2017		5,360		5,392
FNMA		7.50			10-1-2028		2,943		2,961
FNMA		7.50			2-1-2030		31,687		32,165
FNMA		7.50			9-1-2030		78,156		83,591
FNMA		8.00			6-1-2030		10,861		11,017
FNMA Series 1996-46 Class FA ±		0.93			8-25-2021		16,832		16,941
FNMA Series 1997-20 Class IO ±(c)		1.84			3-25-2027		1,254,420		37,567
FNMA Series 2001-25 Class Z		6.00			6-25-2031		168,140		190,517
FNMA Series 2001-35 Class F ±		1.03			7-25-2031		7,289		7,406
FNMA Series 2001-57 Class F ±		0.93			6-25-2031		7,338		7,430
FNMA Series 2002-77 Class FH ±		0.83			12-18-2032		55,622		56,119
FNMA Series 2002-97 Class FR ±		0.98			1-25-2033		13,121		13,282
FNMA Series G91-16 Class F ±		0.88			6-25-2021		16,079		16,175
FNMA Series G92-17 Class F ±		1.48			3-25-2022		55,007		55,935
GNMA		6.50			6-15-2028		37,687		43,172
GNMA		7.25			7-15-2017		2,115		2,121
GNMA		7.25			8-15-2017		11,088		11,183
GNMA		7.25			8-15-2017		4,824		4,840
GNMA		7.25			9-15-2017		9,476		9,572
GNMA		7.25			10-15-2017		17,299		17,612
GNMA		7.25			10-15-2017		6,998		7,063
GNMA		7.25			11-15-2017		8,980		9,070
GNMA		7.25			1-15-2018		2,717		2,725
GNMA		7.25			1-15-2018		5,686		5,705
GNMA		7.25			2-15-2018		11,043		11,162
GNMA		7.25			5-15-2018		6,315		6,337
Total Agency Securities (Cost $13,751,895)									14,632,699

Asset-Backed Securities : 0.11%
CVS Pass-Through Trust Series T		6.04			12-10-2028		550,536		612,955

Total Asset-Backed Securities (Cost $616,303)									612,955


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name						Shares		Value
Common Stocks : 0.08%
Materials : 0.00%
Chemicals : 0.00%
LyondellBasell Industries NV Class A							9	$	702

Telecommunication Services : 0.08%
Diversified Telecommunication Services : 0.08%
Fairpoint Communications Incorporated †							28,903		433,545

Total Common Stocks (Cost $649,736)									434,247


	Interest rate			Maturity date		Principal
Corporate Bonds and Notes : 72.21%
Consumer Discretionary : 13.48%
Auto Components : 0.61%
Cooper Tire & Rubber Company (i)		7.63	%		3-15-2027	$	1,680,000		1,747,200
Cooper Tire & Rubber Company		8.00			12-15-2019		550,000		610,500
Goodyear Tire & Rubber Company		7.00			5-15-2022		400,000		427,800
Goodyear Tire & Rubber Company		8.75			8-15-2020		468,000		539,370
									3,324,870

Distributors : 0.14%
LKQ Corporation		4.75			5-15-2023		800,000		754,000

Diversified Consumer Services : 1.21%
Monitronics International		9.13			4-1-2020		375,000		300,938
Service Corporation International		7.00			6-15-2017		1,410,000		1,491,075
Service Corporation International		7.50			4-1-2027		2,993,000		3,434,468
Service Corporation International		7.63			10-1-2018		680,000		761,178
Service Corporation International		8.00			11-15-2021		475,000		558,125
									6,545,784

Hotels, Restaurants & Leisure : 3.20%
CCM Merger Incorporated 144A		9.13			5-1-2019		6,270,000		6,458,100
Greektown Holdings LLC 144A		8.88			3-15-2019		7,625,000		7,510,625
Hilton Worldwide Finance LLC		5.63			10-15-2021		195,000		200,850
Pinnacle Entertainment Incorporated		7.50			4-15-2021		2,620,000		2,724,800
Speedway Motorsports Incorporated		5.13			2-1-2023		425,000		423,938
									17,318,313

Household Durables : 0.43%
American Greetings Corporation		7.38			12-1-2021		2,000,000		2,035,000
Tempur Sealy International Incorporated 144A		5.63			10-15-2023		105,000		107,100
Tempur Sealy International Incorporated		6.88			12-15-2020		200,000		211,500
									2,353,600

Internet & Catalog Retail : 0.15%
Expedia Incorporated		5.95			8-15-2020		750,000		819,600

Leisure Products : 0.11%
Vista Outdoor Incorporated 144A		5.88			10-1-2023		600,000		610,500

Media : 6.30%
Altice US Finance I Corporation 144A		5.38			7-15-2023		1,395,000		1,401,975
Altice US Finance II Corporation 144A		7.75			7-15-2025		2,030,000		1,857,450


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
Cable One Incorporated 144A		5.75	%		6-15-2022	$	375,000	$	378,750
Cablevision Systems Corporation		8.63			9-15-2017		1,310,000		1,362,400
CCO Holdings LLC		5.13			2-15-2023		300,000		299,250
CCO Holdings LLC 144A		5.13			5-1-2023		475,000		473,753
CCO Holdings LLC		5.25			9-30-2022		1,250,000		1,265,625
CCO Holdings LLC 144A		5.38			5-1-2025		4,150,000		4,108,500
CCO Holdings LLC 144A		5.88			5-1-2027		705,000		694,425
CCO Holdings LLC		6.63			1-31-2022		775,000		820,531
CCO Holdings LLC		7.38			6-1-2020		1,100,000		1,144,000
CCOH Safari LLC 144A		5.75			2-15-2026		3,125,000		3,108,984
Cequel Communications Holdings I LLC 144A		5.13			12-15-2021		1,170,000		1,058,148
Cinemark USA Incorporated		7.38			6-15-2021		775,000		807,938
CSC Holdings LLC		7.88			2-15-2018		1,000,000		1,052,500
CSC Holdings LLC		8.63			2-15-2019		383,000		407,895
DIRECTV Holdings LLC		3.80			3-15-2022		750,000		757,812
EchoStar DBS Corporation		7.13			2-1-2016		125,000		125,000
Gray Television Incorporated		7.50			10-1-2020		4,600,000		4,743,750
Interpublic Group of Companies		4.00			3-15-2022		750,000		768,422
Lamar Media Corporation		5.88			2-1-2022		690,000		716,738
LIN Television Corporation		6.38			1-15-2021		275,000		287,375
Live Nation Entertainment Incorporated 144A		7.00			9-1-2020		200,000		210,000
National CineMedia LLC		6.00			4-15-2022		1,710,000		1,750,613
National CineMedia LLC		7.88			7-15-2021		1,000,000		1,032,500
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		175,000		166,250
Nexstar Broadcasting Group Incorporated		6.88			11-15-2020		1,750,000		1,754,375
Outfront Media Capital Corporation		5.63			2-15-2024		20,000		20,450
Outfront Media Capital Corporation		5.88			3-15-2025		775,000		787,594
Time Warner Cable Incorporated		4.00			1-15-2022		750,000		781,937
									34,144,940

Multiline Retail : 0.11%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		600,000		590,938

Specialty Retail : 1.22%
ABC Supply Company Incorporated 144A		5.63			4-15-2021		450,000		459,000
ABC Supply Company Incorporated 144A		5.75			12-15-2023		300,000		306,000
Advance Auto Parts Incorporated		4.50			1-15-2022		600,000		625,373
Century Intermediate Holding Company (PIK at 10.50%) 144A(i)¥		9.75			2-15-2019		300,000		306,000
L Brands Incorporated		6.63			4-1-2021		750,000		834,375
Penske Auto Group Incorporated		5.38			12-1-2024		1,130,000		1,096,100
Penske Auto Group Incorporated		5.75			10-1-2022		1,155,000		1,146,338
Sonic Automotive Incorporated		5.00			5-15-2023		1,174,000		1,106,495
Sonic Automotive Incorporated		7.00			7-15-2022		700,000		726,250
									6,605,931

Consumer Staples : 1.10%
Beverages : 0.15%
Cott Beverages Incorporated		6.75			1-1-2020		790,000		813,700

Food & Staples Retailing : 0.11%
SABMiller Holdings Incorporated 144A		3.75			1-15-2022		600,000		621,288

Food Products : 0.63%
B&G Foods Incorporated		4.63			6-1-2021		300,000		299,250
Darling Ingredients Incorporated		5.38			1-15-2022		180,000		176,400
Kraft Foods Group Incorporated		3.50			6-6-2022		750,000		767,000
Pilgrim’s Pride Corporation 144A		5.75			3-15-2025		1,130,000		1,087,625
Pinnacle Foods Incorporated 144A		5.88			1-15-2024		75,000		77,625
Simmons Foods Incorporated 144A		7.88			10-1-2021		1,100,000		973,500


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Food Products (continued)
Treehouse Foods Incorporated 144A		6.00	%		2-15-2024	$	50,000	$	51,438
									3,432,838

Household Products : 0.07%
Central Garden & Pet Company		6.13			11-15-2023		250,000		255,625
Spectrum Brands Incorporated 144A		5.75			7-15-2025		100,000		102,500
									358,125

Tobacco : 0.14%
Reynolds American Incorporated		6.88			5-1-2020		650,000		758,668

Energy : 13.83%
Energy Equipment & Services : 5.07%
Bristow Group Incorporated		6.25			10-15-2022		4,478,000		3,078,625
Cleaver Brooks Incorporated 144A		8.75			12-15-2019		95,000		89,300
Era Group Incorporated		7.75			12-15-2022		4,425,000		3,363,000
Forum Energy Technologies Incorporated		6.25			10-1-2021		1,000,000		800,000
Gulfmark Offshore Incorporated		6.38			3-15-2022		3,725,000		1,154,750
Hilcorp Energy Company 144A		5.00			12-1-2024		500,000		386,250
Hilcorp Energy Company 144A		5.75			10-1-2025		1,300,000		1,017,250
Hornbeck Offshore Services Incorporated		5.00			3-1-2021		2,835,000		1,601,775
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		1,860,000		1,116,000
NGPL PipeCo LLC 144A		7.12			12-15-2017		2,060,000		1,936,400
NGPL PipeCo LLC 144A		7.77			12-15-2037		10,740,000		8,081,850
NGPL PipeCo LLC 144A		9.63			6-1-2019		435,000		408,900
PHI Incorporated		5.25			3-15-2019		5,525,000		4,461,438
									27,495,538

Oil, Gas & Consumable Fuels : 8.76%
Alpha Natural Resources Incorporated (s)		6.25			6-1-2021		475,000		1,188
Arch Coal Incorporated (s)		7.00			6-15-2019		1,200,000		7,500
Arch Coal Incorporated (s)		7.25			6-15-2021		475,000		3,859
Berry Petroleum Company LLC		6.38			9-15-2022		3,175,000		635,000
Berry Petroleum Company LLC		6.75			11-1-2020		320,000		70,400
Continental Resources Company		5.00			9-15-2022		675,000		472,500
CSI Compressco LP		7.25			8-15-2022		1,450,000		942,500
Denbury Resources Incorporated		4.63			7-15-2023		3,850,000		1,270,500
Denbury Resources Incorporated		5.50			5-1-2022		655,000		229,250
Denbury Resources Incorporated		6.38			8-15-2021		960,000		345,600
El Paso LLC		6.50			4-1-2020		750,000		765,515
Energy Transfer Partners LP		5.20			2-1-2022		750,000		671,987
Exterran Partners LP		6.00			4-1-2021		2,225,000		1,657,625
Kinder Morgan Energy Partners LP		3.95			9-1-2022		750,000		657,002
Kinder Morgan Energy Partners LP		5.55			6-1-2045		925,000		724,871
Kinder Morgan Incorporated		6.50			9-15-2020		285,000		285,303
Kinder Morgan Incorporated		7.00			6-15-2017		530,000		545,930
Kinder Morgan Incorporated (i)		7.42			2-15-2037		800,000		697,293
Kinder Morgan Incorporated		7.80			8-1-2031		1,850,000		1,774,846
Nabors Industries Incorporated		4.63			9-15-2021		750,000		557,108
Northern Tier Energy LLC		7.13			11-15-2020		2,125,000		2,021,725
Overseas Shipholding Group Incorporated		8.13			3-30-2018		1,166,000		1,160,170
Phillips 66		4.30			4-1-2022		625,000		639,081
Pioneer Natural Resources Company		3.95			7-15-2022		750,000		697,783
Pioneer Natural Resources Company		7.50			1-15-2020		1,220,000		1,289,269
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		3,625,000		3,244,375
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		4,038,000		3,068,880
Rockies Express Pipeline LLC 144A(i)		7.50			7-15-2038		2,350,000		1,880,000
Sabine Oil & Gas Corporation (i)(s)		7.25			6-15-2019		520,000		33,800
Sabine Oil & Gas Corporation (i)(s)		7.50			9-15-2020		3,500,000		227,500
Sabine Pass Liquefaction LLC		5.63			2-1-2021		850,000		777,750


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Sabine Pass Liquefaction LLC		5.63	%		4-15-2023	$	1,710,000	$	1,500,525
Sabine Pass Liquefaction LLC		5.63			3-1-2025		460,000		395,600
Sabine Pass Liquefaction LLC		5.75			5-15-2024		1,625,000		1,425,938
Sabine Pass Liquefaction LLC		6.25			3-15-2022		3,550,000		3,270,438
Sabine Pass LNG LP		6.50			11-1-2020		4,245,000		4,388,269
Sabine Pass LNG LP		7.50			11-30-2016		3,210,000		3,326,363
SemGroup Corporation		7.50			6-15-2021		2,755,000		2,121,350
Southern Star Central Corporation 144A		5.13			7-15-2022		50,000		43,125
Suburban Propane Partners LP		7.38			8-1-2021		309,000		302,820
Swift Energy Company (i)(s)		7.13			6-1-2017		5,696,000		427,200
Swift Energy Company (i)(s)		8.88			1-15-2020		1,075,000		80,625
Ultra Petroleum Corporation 144A		5.75			12-15-2018		410,000		57,892
Ultra Petroleum Corporation 144A		6.13			10-1-2024		8,475,000		1,186,500
Weatherford International Incorporated		6.35			6-15-2017		650,000		572,000
Western Gas Partners LP		5.38			6-1-2021		503,000		469,610
Williams Partners LP		3.35			8-15-2022		750,000		532,709
									47,457,074

Financials : 15.64%
Banks : 0.97%
Bank of America Corporation		5.70			1-24-2022		250,000		282,071
CIT Group Incorporated		5.25			3-15-2018		100,000		103,312
CIT Group Incorporated 144A		5.50			2-15-2019		1,275,000		1,316,438
CIT Group Incorporated 144A		6.63			4-1-2018		550,000		581,625
Citigroup Incorporated		4.50			1-14-2022		250,000		269,078
Citigroup Incorporated		6.00			8-15-2017		650,000		690,469
City National Bank		5.38			7-15-2022		500,000		563,290
HSBC Bank USA		6.00			8-9-2017		650,000		690,364
JPMorgan Chase & Company		3.38			5-1-2023		750,000		729,932
									5,226,579

Capital Markets : 1.13%
Ace Securities Corporation ±		3.05			6-25-2033		399,612		393,150
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		750,000		866,594
Goldman Sachs Group Incorporated		5.75			1-24-2022		750,000		851,584
Jefferies Finance LLC 144A		6.88			4-15-2022		3,560,000		2,803,500
Jefferies Finance LLC 144A		7.38			4-1-2020		200,000		167,000
Jefferies Finance LLC 144A		7.50			4-15-2021		475,000		387,422
Neuberger Berman Group LLC 144A		5.88			3-15-2022		650,000		677,625
									6,146,875

Consumer Finance : 4.05%
Ally Financial Incorporated		5.75			11-20-2025		675,000		673,313
Ally Financial Incorporated		8.00			12-31-2018		1,155,000		1,260,394
Ally Financial Incorporated		8.00			3-15-2020		755,000		845,600
Discover Financial Services		5.20			4-27-2022		750,000		816,158
Ford Motor Credit Company LLC		5.00			5-15-2018		650,000		681,315
Ford Motor Credit Company LLC		8.00			12-15-2016		250,000		263,042
Homer City Generation LLC (PIK at 9.23%) 144A¥		8.73			10-1-2026		1,267,475		988,630
Navient Corporation		5.88			3-25-2021		610,000		527,650
Navient Corporation		8.00			3-25-2020		3,280,000		3,230,800
SLM Corporation		6.13			3-25-2024		1,220,000		1,001,925
SLM Corporation		7.25			1-25-2022		930,000		827,700
SLM Corporation		8.45			6-15-2018		1,675,000		1,733,625
Springleaf Finance Corporation		5.75			9-15-2016		1,100,000		1,108,250
Springleaf Finance Corporation		6.00			6-1-2020		1,735,000		1,583,188
Springleaf Finance Corporation		6.50			9-15-2017		200,000		201,500
Springleaf Finance Corporation		6.90			12-15-2017		4,550,000		4,651,920


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance (continued)
Springleaf Finance Corporation		7.75	%		10-1-2021	$	500,000	$	470,000
Springleaf Finance Corporation		8.25			10-1-2023		1,160,000		1,093,300
									21,958,310

Diversified Financial Services : 1.97%
Denali Borrower LLC 144A		5.63			10-15-2020		3,510,000		3,694,275
General Electric Capital Corporation		4.65			10-17-2021		187,000		210,184
Infinity Acquisition LLC 144A(i)		7.25			8-1-2022		2,615,000		2,222,750
ING US Incorporated		5.50			7-15-2022		750,000		839,007
Moody’s Corporation		5.50			9-1-2020		1,302,000		1,451,128
NewStar Financial Incorporated		7.25			5-1-2020		2,450,000		2,278,500
									10,695,844

Insurance : 1.77%
American International Group Incorporated		4.88			6-1-2022		750,000		800,099
Endurance Specialty Holdings Limited		7.00			7-15-2034		575,000		698,257
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		714,954
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		2,900,000		2,436,000
Hub International Limited 144A		7.88			10-1-2021		2,295,000		2,013,863
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		811,237
ProAssurance Corporation		5.30			11-15-2023		750,000		811,935
Progressive Corporation ±		6.70			6-15-2067		600,000		597,000
W.R. Berkley Corporation		4.63			3-15-2022		650,000		700,035
									9,583,380

Real Estate Management & Development : 0.53%
Onex Corporation 144A		7.75			1-15-2021		3,205,000		2,876,488

REITs : 5.22%
Alexandria Real Estate Company		4.60			4-1-2022		650,000		694,394
American Tower Corporation		5.90			11-1-2021		650,000		736,871
Crown Castle International Corporation		4.88			4-15-2022		460,000		482,425
Crown Castle International Corporation		5.25			1-15-2023		95,000		101,175
DuPont Fabros Technology Incorporated LP		5.63			6-15-2023		2,975,000		2,989,875
DuPont Fabros Technology Incorporated LP		5.88			9-15-2021		4,655,000		4,794,650
Equinix Incorporated		5.88			1-15-2026		425,000		439,875
ESH Hospitality Incorporated 144A		5.25			5-1-2025		1,100,000		1,059,432
Essex Portfolio LP		3.63			8-15-2022		750,000		767,204
Health Care REIT Incorporated		5.25			1-15-2022		650,000		710,797
Iron Mountain Incorporated		5.75			8-15-2024		4,850,000		4,789,375
Iron Mountain Incorporated 144A		6.00			10-1-2020		230,000		244,950
Iron Mountain Incorporated		6.00			8-15-2023		2,960,000		3,078,400
Sabra Health Care Incorporated		5.38			6-1-2023		850,000		852,125
Sabra Health Care Incorporated		5.50			2-1-2021		1,100,000		1,122,000
The Geo Group Incorporated		5.13			4-1-2023		500,000		475,000
The Geo Group Incorporated		5.88			1-15-2022		2,640,000		2,616,900
The Geo Group Incorporated		5.88			10-15-2024		465,000		447,563
The Geo Group Incorporated		6.63			2-15-2021		1,190,000		1,215,288
Ventas Realty LP		4.25			3-1-2022		650,000		677,949
									28,296,248

Health Care : 6.18%
Biotechnology : 0.14%
Amgen Incorporated		3.63			5-15-2022		750,000		777,928

Health Care Equipment & Supplies : 0.46%
Crimson Merger Sub Incorporated 144A		6.63			5-15-2022		2,400,000		1,608,000
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		203,750


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Health Care Equipment & Supplies (continued)
Hologic Incorporated 144A		5.25	%		7-15-2022	$	670,000	$	693,450
									2,505,200

Health Care Providers & Services : 3.54%
Acadia Healthcare Company Incorporated		5.63			2-15-2023		270,000		255,116
Centene Corporation		5.75			6-1-2017		1,000,000		1,035,000
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		843,568
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		445,000		437,769
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		525,000		546,656
Express Scripts Holding Company		3.90			2-15-2022		665,000		689,540
HCA Incorporated		6.50			2-15-2020		1,875,000		2,067,188
HealthSouth Corporation 144A		5.75			11-1-2024		500,000		493,545
HealthSouth Corporation		5.75			11-1-2024		30,000		29,613
HealthSouth Corporation 144A		5.75			9-15-2025		650,000		630,370
HealthSouth Corporation		7.75			9-15-2022		818,000		848,675
Humana Incorporated		7.20			6-15-2018		750,000		835,931
Mednax Incorporated 144A		5.25			12-1-2023		475,000		486,875
Molina Healthcare Incorporated 144A		5.38			11-15-2022		475,000		475,000
MPT Operating Partnership LP		6.38			2-15-2022		1,075,000		1,091,125
MPT Operating Partnership LP		6.88			5-1-2021		775,000		802,125
Select Medical Corporation		6.38			6-1-2021		6,215,000		5,282,750
Team Health Incorporated 144A		7.25			12-15-2023		750,000		783,750
Tenet Healthcare Corporation		6.00			10-1-2020		1,475,000		1,563,500
									19,198,096

Health Care Technology : 0.83%
Emdeon Incorporated		11.00			12-31-2019		4,325,000		4,498,000

Life Sciences Tools & Services : 0.16%
Life Technologies Corporation		6.00			3-1-2020		750,000		841,474

Pharmaceuticals : 1.05%
Endo Finance LLC 144A		5.75			1-15-2022		715,000		711,425
Endo Finance LLC 144A		5.88			1-15-2023		375,000		372,188
Endo Finance LLC 144A		6.00			2-1-2025		775,000		765,406
Endo Finance LLC 144A		7.75			1-15-2022		2,385,000		2,489,344
PRA Holdings Incorporated 144A		9.50			10-1-2023		500,000		547,500
Valeant Pharmaceuticals International Incorporated 144A		7.25			7-15-2022		75,000		73,500
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		748,506
									5,707,869

Industrials : 5.24%
Aerospace & Defense : 0.19%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		1,011,459

Airlines : 0.38%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,320,000		1,475,100
Delta Air Lines Incorporated		4.75			11-7-2021		578,856		606,351
									2,081,451

Commercial Services & Supplies : 1.91%
ADT Corporation		3.50			7-15-2022		750,000		676,875
ADT Corporation		4.13			6-15-2023		1,375,000		1,265,000
ADT Corporation		6.25			10-15-2021		1,605,000		1,665,188
Aramark Services Incorporated 144A		5.13			1-15-2024		120,000		123,900
Berry Plastics Corporation 144A		6.00			10-15-2022		215,000		219,300
Covanta Holding Corporation		5.88			3-1-2024		2,260,000		1,971,850


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies (continued)
Covanta Holding Corporation		6.38	%		10-1-2022	$	1,500,000	$	1,413,750
Covanta Holding Corporation		7.25			12-1-2020		1,480,000		1,497,575
Penske Truck Leasing Company 144A		3.75			5-11-2017		750,000		764,475
Republic Services Incorporated		3.55			6-1-2022		750,000		781,757
									10,379,670

Construction & Engineering : 0.88%
AECOM		5.75			10-15-2022		215,000		217,419
AECOM		5.88			10-15-2024		2,610,000		2,600,213
United Rentals North America Incorporated		4.63			7-15-2023		1,200,000		1,168,500
United Rentals North America Incorporated		5.50			7-15-2025		850,000		759,688
									4,745,820

Professional Services : 0.15%
Ascent Capital Group Incorporated		4.00			7-15-2020		375,000		214,219
Verisk Analytics Incorporated		5.80			5-1-2021		530,000		596,045
									810,264

Road & Rail : 0.12%
TTX Company 144A		2.60			6-15-2020		650,000		648,138

Trading Companies & Distributors : 1.48%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		4,100,000		4,182,000
H&E Equipment Services Incorporated		7.00			9-1-2022		4,125,000		3,764,063
International Lease Finance Corporation 144A		7.13			9-1-2018		75,000		81,188
									8,027,251

Transportation Infrastructure : 0.13%
Hornbeck Offshore Services Company		1.50			9-1-2019		1,350,000		709,594

Information Technology : 4.73%
Communications Equipment : 0.33%
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		1,100,000		1,069,750
Motorola Solutions Incorporated		3.75			5-15-2022		750,000		692,022
									1,761,772

Electronic Equipment, Instruments & Components : 1.32%
Jabil Circuit Incorporated		8.25			3-15-2018		5,275,000		5,736,563
L-3 Communications Corporation		4.95			2-15-2021		750,000		779,749
Zebra Technologies Corporation		7.25			10-15-2022		600,000		624,000
									7,140,312

Internet Software & Services : 0.16%
Infor Software Parent LLC 144A		6.50			5-15-2022		550,000		479,875
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13			5-1-2021		550,000		391,875
									871,750

IT Services : 1.07%
Audatex North America Incorporated 144A		6.00			6-15-2021		2,725,000		2,745,438
Audatex North America Incorporated 144A		6.13			11-1-2023		1,900,000		1,914,250
First Data Corporation 144A		5.00			1-15-2024		230,000		231,150
First Data Corporation 144A		5.75			1-15-2024		320,000		318,400


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
IT Services (continued)
First Data Corporation 144A		6.75	%		11-1-2020	$	585,000	$	616,444
									5,825,682

Semiconductors & Semiconductor Equipment : 0.30%
Micron Technology Incorporated 144A		5.25			8-1-2023		375,000		303,750
Micron Technology Incorporated 144A		5.25			1-15-2024		175,000		142,188
Micron Technology Incorporated		5.50			2-1-2025		275,000		217,250
Micron Technology Incorporated 144A		5.63			1-15-2026		300,000		232,500
Micron Technology Incorporated		5.88			2-15-2022		850,000		756,500
									1,652,188

Software : 0.65%
Activision Blizzard Incorporated 144A		5.63			9-15-2021		705,000		740,250
Activision Blizzard Incorporated 144A		6.13			9-15-2023		175,000		187,250
Boxer Parent Company Incorporated (PIK at 9.75%) 144A¥		9.00			10-15-2019		2,160,000		1,231,200
CA Incorporated		5.38			12-1-2019		750,000		817,072
Emdeon Incorporated 144A		6.00			2-15-2021		500,000		462,563
SS&C Technologies Incorporated 144A		5.88			7-15-2023		55,000		56,925
									3,495,260

Technology Hardware, Storage & Peripherals : 0.90%
Hewlett-Packard Company		4.05			9-15-2022		750,000		742,148
NCR Corporation		5.88			12-15-2021		230,000		225,975
NCR Corporation		6.38			12-15-2023		3,950,000		3,908,012
									4,876,135

Materials : 1.41%
Chemicals : 0.14%
Dow Chemical Company		4.13			11-15-2021		750,000		777,110

Containers & Packaging : 1.27%
Ball Corporation		5.25			7-1-2025		190,000		195,700
Crown Cork & Seal Company Incorporated		7.38			12-15-2026		35,000		37,450
Crown Cork & Seal Company Incorporated (i)		7.50			12-15-2096		600,000		594,000
Owens-Brockway Glass Container Incorporated 144A		5.88			8-15-2023		425,000		417,031
Owens-Brockway Glass Container Incorporated 144A		5.38			1-15-2025		575,000		536,188
Owens-Brockway Glass Container Incorporated 144A		6.38			8-15-2025		2,600,000		2,561,000
Owens-Illinois Incorporated		7.80			5-15-2018		1,295,000		1,411,550
Sealed Air Corporation 144A		5.13			12-1-2024		1,100,000		1,100,000
									6,852,919

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

Telecommunication Services : 8.28%
Diversified Telecommunication Services : 3.01%
CenturyLink Incorporated		5.80			3-15-2022		600,000		558,750
Citizens Communications Company		7.88			1-15-2027		355,000		273,350
Frontier Communications Corporation		8.13			10-1-2018		845,000		862,956
Frontier Communications Corporation		8.25			4-15-2017		1,040,000		1,089,400
Frontier Communications Corporation		8.50			4-15-2020		525,000		520,406
GCI Incorporated		6.75			6-1-2021		2,330,000		2,312,525
GCI Incorporated		6.88			4-15-2025		1,200,000		1,176,000
Level 3 Financing Incorporated		5.13			5-1-2023		975,000		979,875


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Diversified Telecommunication Services (continued)
Level 3 Financing Incorporated		5.38	%		8-15-2022	$	300,000	$	306,375
Level 3 Financing Incorporated 144A		5.38			1-15-2024		700,000		707,000
Level 3 Financing Incorporated		5.38			5-1-2025		975,000		981,094
Level 3 Financing Incorporated		5.63			2-1-2023		350,000		357,875
Level 3 Financing Incorporated		6.13			1-15-2021		175,000		183,313
Level 3 Financing Incorporated		7.00			6-1-2020		180,000		189,000
Qwest Corporation (i)		7.63			8-3-2021		230,000		229,713
Syniverse Holdings Incorporated		9.13			1-15-2019		6,805,000		2,585,900
Windstream Corporation		6.38			8-1-2023		800,000		578,000
Windstream Corporation		7.88			11-1-2017		2,330,000		2,434,850
									16,326,382

Wireless Telecommunication Services : 5.27%
Crown Castle Towers LLC 144A		6.11			1-15-2040		750,000		824,361
MetroPCS Wireless Incorporated		6.63			11-15-2020		3,300,000		3,394,050
SBA Communications Corporation		4.88			7-15-2022		640,000		640,000
SBA Communications Corporation		5.63			10-1-2019		160,000		166,400
SBA Communications Corporation		5.75			7-15-2020		2,000,000		2,075,000
Sprint Capital Corporation		6.88			11-15-2028		13,915,000		9,183,897
Sprint Capital Corporation		8.75			3-15-2032		2,575,000		1,815,375
Sprint Communications Incorporated		7.00			8-15-2020		225,000		165,375
Sprint Communications Incorporated		11.50			11-15-2021		625,000		525,000
Sprint Corporation		7.13			6-15-2024		1,230,000		830,250
Sprint Corporation		7.63			2-15-2025		400,000		273,250
Sprint Corporation		7.88			9-15-2023		705,000		504,075
T-Mobile USA Incorporated		6.00			3-1-2023		300,000		301,650
T-Mobile USA Incorporated		6.13			1-15-2022		85,000		86,488
T-Mobile USA Incorporated		6.25			4-1-2021		165,000		168,300
T-Mobile USA Incorporated		6.38			3-1-2025		825,000		827,063
T-Mobile USA Incorporated		6.46			4-28-2019		160,000		165,000
T-Mobile USA Incorporated		6.50			1-15-2024		80,000		80,800
T-Mobile USA Incorporated		6.50			1-15-2026		225,000		223,875
T-Mobile USA Incorporated		6.54			4-28-2020		165,000		169,950
T-Mobile USA Incorporated		6.63			4-28-2021		920,000		951,050
T-Mobile USA Incorporated		6.63			4-1-2023		505,000		516,363
T-Mobile USA Incorporated		6.73			4-28-2022		3,490,000		3,585,975
T-Mobile USA Incorporated		6.84			4-28-2023		1,060,000		1,094,450
									28,567,997

Utilities : 2.32%
Electric Utilities : 0.51%
Great Plains Energy Incorporated		4.85			6-1-2021		750,000		817,442
Otter Tail Corporation (i)		9.00			12-15-2016		1,835,000		1,929,627
									2,747,069

Gas Utilities : 0.43%
AmeriGas Finance LLC		6.75			5-20-2020		1,775,000		1,757,250
AmeriGas Finance LLC		7.00			5-20-2022		615,000		602,700
									2,359,950

Independent Power & Renewable Electricity Producers : 1.12%
Calpine Corporation 144A		6.00			1-15-2022		515,000		534,956
Calpine Corporation 144A		7.88			1-15-2023		530,000		565,775
NSG Holdings LLC 144A		7.75			12-15-2025		2,352,652		2,482,048
Reliant Energy Incorporated		9.24			7-2-2017		394,314		391,356
Reliant Energy Incorporated		9.68			7-2-2026		410,000		401,800
TerraForm Power Operating LLC 144A		5.88			2-1-2023		895,000		713,763


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Independent Power & Renewable Electricity Producers (continued)
TerraForm Power Operating LLC 144A		6.13	%		6-15-2025	$	1,250,000	$	965,625
									6,055,323

Multi-Utilities : 0.26%
Ameren Illinois Company		9.75			11-15-2018		500,000		602,378
CMS Energy Corporation		5.05			3-15-2022		750,000		832,694
									1,435,072

Total Corporate Bonds and Notes (Cost $431,274,457)									391,476,566

Foreign Corporate Bonds and Notes @: 2.62%
Consumer Discretionary : 0.06%
Auto Components : 0.02%
HP Pelzer Holding GmbH (EUR)		7.50			7-15-2021		100,000		111,580

Internet & Catalog Retail : 0.04%
Priceline Group Incorporated (EUR)		2.38			9-23-2024		200,000		210,148

Consumer Staples : 0.12%
Food Products : 0.12%
BRF SA 144A (BRL)		7.75			5-22-2018		3,100,000		639,407

Energy : 0.28%
Energy Equipment & Services : 0.02%
Rapid Holding GmbH 144A (EUR)		6.63			11-15-2020		100,000		111,011

Oil, Gas & Consumable Fuels : 0.26%
Petroleos Mexicanos 144A (MXN)		7.19			9-12-2024		28,200,000		1,405,898

Financials : 1.69%
Banks : 1.59%
Eurofima (AUD)		6.25			12-28-2018		2,450,000		1,907,045
European Investment Bank (ZAR)		9.00			3-31-2021		17,400,000		1,099,420
KfW (TRY)		5.00			1-16-2017		11,400,000		3,656,516
KfW (AUD)		5.00			3-19-2024		1,300,000		1,046,870
Landwirtschaftliche Rentenbank (ZAR)		8.25			5-23-2022		15,000,000		908,673
									8,618,524

Diversified Financial Services : 0.10%
AA Bond Company Limited (GBP)		4.25			7-31-2043		200,000		293,402
TES Finance plc (GBP)		6.75			7-15-2020		200,000		259,474
									552,876

Materials : 0.12%
Chemicals : 0.12%
Albemarle Corporation (EUR)		1.88			12-8-2021		600,000		623,304

Telecommunication Services : 0.35%
Diversified Telecommunication Services : 0.07%
Verizon Communications Incorporated (EUR)		3.25			2-17-2026		300,000		367,661


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Wireless Telecommunication Services : 0.28%
America Movil SAB de CV (MXN)		7.13	%		12-9-2024	$	28,850,000	$	1,541,456

Total Foreign Corporate Bonds and Notes (Cost $19,870,766)									14,181,865

Foreign Government Bonds @: 24.73%
Brazil (BRL)		10.00			1-1-2017		38,525,000		9,382,501
Brazil (BRL)		10.00			1-1-2025		32,800,000		6,092,380
Colombia (COP)		7.00			5-4-2022		18,650,000,000		5,277,981
Colombia (COP)		7.75			4-14-2021		5,250,000,000		1,602,589
Hungary (HUF)		6.75			11-24-2017		1,305,000,000		4,954,739
Indonesia (IDR)		7.88			4-15-2019		133,640,000,000		9,598,311
Indonesia (IDR)		10.00			7-15-2017		50,000,000,000		3,726,534
Korea (KRW)		5.25			3-10-2027		2,830,000,000		3,120,112
Malaysia (MYR)		3.66			10-15-2020		20,700,000		5,044,921
Malaysia (MYR)		4.18			7-15-2024		19,850,000		4,855,152
Mexico (MXN)		4.75			6-14-2018		191,800,000		10,663,203
Mexico (MXN)		6.50			6-10-2021		40,000,000		2,313,394
Mexico (MXN)		10.00			12-5-2024		62,120,000		4,377,620
Mexico (MXN)		10.00			12-5-2024		14,100,000		993,632
Poland (PLN)		1.50			4-25-2020		41,200,000		9,827,491
Poland (PLN)		3.25			7-25-2025		37,100,000		9,301,525
Queensland Treasury (AUD)		5.75			7-22-2024		4,100,000		3,492,301
Republic of South Africa (ZAR)		7.75			2-28-2023		103,000,000		6,048,926
Republic of South Africa (ZAR)		8.00			12-21-2018		129,000,000		8,026,540
Romania (RON)		5.85			4-26-2023		31,550,000		8,757,512
State of New South Wales Australia (AUD)		5.00			8-20-2024		3,900,000		3,231,178
Thailand (THB)		3.25			6-16-2017		110,000,000		3,155,997
Thailand (THB)		3.85			12-12-2025		108,500,000		3,429,775
Turkey (TRY)		6.30			2-14-2018		7,325,000		2,286,274
Turkey (TRY)		9.00			3-8-2017		13,600,000		4,520,909
Total Foreign Government Bonds (Cost $169,815,047)									134,081,497

Loans : 15.68%
Consumer Discretionary : 3.50%
Auto Components : 0.62%
Allison Transmission Incorporated ±		3.50			8-23-2019		3,367,190		3,351,499

Distributors : 0.53%
Spin Holdco Incorporated ±		4.25			11-14-2019		3,010,147		2,855,877

Hotels, Restaurants & Leisure : 0.14%
CCM Merger Incorporated ±		4.50			8-8-2021		648,825		644,770
TGI Friday’s Incorporated ±		5.25			7-15-2020		98,050		97,396
									742,166

Household Durables : 0.02%
Tempur-Pedic International Incorporated ±		3.50			3-18-2020		109,203		108,748

Household Products : 0.03%
Anchor Glass Container Corporation ±		4.50			7-1-2022		163,710		162,926

Leisure Products : 0.36%
AMF Bowling Centers Incorporated ±		7.25			9-18-2021		1,720,638		1,694,829
Life Time Fitness Incorporated ±		4.25			6-10-2022		273,999		267,834
									1,962,663

Media : 1.27%
Altice US Finance I Corporation ±%%<		0.00			12-14-2022		425,000		416,679


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
Cablevision Systems Corporation ±		5.00	%		10-9-2022	$	700,000	$	698,033
Charter Communications Operating LLC ±		3.50			1-24-2023		445,000		444,279
Entercom Radio LLC ±		4.00			11-23-2018		1,051,607		1,046,349
Learfield Communications Incorporated ±		4.50			10-9-2020		1,437,373		1,415,813
Learfield Communications Incorporated ±		8.75			10-9-2021		2,669,807		2,629,760
Mission Broadcasting Incorporated ±		3.75			10-1-2020		125,231		124,527
Nexstar Broadcasting Incorporated ±		3.75			10-1-2020		142,014		141,216
									6,916,656

Multiline Retail : 0.03%
Doosan Infracore International Incorporated ±		4.50			5-28-2021		199,777		190,787

Specialty Retail : 0.50%
Focus Brands Incorporated ±		4.25			2-21-2018		685,453		680,881
Focus Brands Incorporated ±		10.25			8-21-2018		2,023,863		2,018,803
									2,699,684

Consumer Staples : 0.18%
Food Products : 0.18%
B&G Foods Incorporated ±		3.75			11-2-2022		750,000		748,125
Pinnacle Foods Incorporated ±		3.75			1-13-2023		250,000		250,040
									998,165

Energy : 0.51%
Energy Equipment & Services : 0.51%
Hummel Station LLC ±		7.00			10-27-2022		3,025,000		2,783,000

Financials : 2.23%
Capital Markets : 0.25%
American Capital Limited ±		3.50			8-22-2017		1,373,348		1,359,614

Diversified Financial Services : 0.98%
American Beacon Advisors Incorporated ±		5.50			4-30-2022		2,394,539		2,364,607
American Beacon Advisors Incorporated ±(i)		9.75			3-3-2023		440,000		431,200
Ipreo Holdings LLC ±		4.00			8-6-2021		143,193		136,928
LPL Holdings Incorporated ±		3.25			3-29-2019		1,199,800		1,181,803
TMFS Holdings LLC ±		5.50			7-30-2021		1,219,563		1,213,465
									5,328,003

Insurance : 0.10%
Asurion LLC ±		8.50			3-3-2021		360,000		302,915
Hub International Limited ±		4.00			10-2-2020		272,747		260,962
									563,877

Real Estate Management & Development : 0.90%
Capital Automotive LP ±		4.00			4-10-2019		3,047,525		3,039,419
Capital Automotive LP ±		6.00			4-30-2020		1,849,333		1,810,035
									4,849,454


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Health Care : 0.85%
Health Care Equipment & Supplies : 0.16%
DJO Finance LLC ±		4.25	%		6-8-2020	$	567,150	$	545,411
Prestige Brands Incorporated ±		3.50			9-3-2021		307,104		306,337
									851,748

Health Care Providers & Services : 0.50%
Acadia Healthcare Company Incorporated ±		4.25			2-11-2022		158,400		157,212
Community Health Systems Incorporated ±		4.00			1-27-2021		947,619		910,899
Surgery Center Holdings Incorporated ±		5.25			11-3-2020		1,113,750		1,091,475
Team Health Incorporated ±		4.50			11-23-2022		525,000		521,719
									2,681,305

Health Care Technology : 0.03%
Alere Incorporated ±		4.25			6-18-2022		101,999		100,775
Hill-Rom Holdings Incorporated ±		3.50			9-8-2022		70,125		69,920
									170,695

Pharmaceuticals : 0.16%
Endo Finance LLC ±		3.75			9-26-2022		300,000		296,016
Valeant Pharmaceuticals International Incorporated ±		3.75			12-11-2019		172,765		166,123
Valeant Pharmaceuticals International Incorporated ±		4.00			4-1-2022		445,500		428,188
									890,327

Industrials : 2.11%
Aerospace & Defense : 0.54%
TransDigm Incorporated ±		3.75			2-28-2020		3,018,953		2,947,253

Airlines : 0.02%
LM U.S. Corp Acquisition Incorporated ±		8.25			1-25-2021		87,203		86,949

Chemicals : 0.05%
The Chemours Company ±		3.75			5-12-2022		278,600		246,096

Commercial Services & Supplies : 0.74%
ADS Waste Holdings Incorporated ±		3.75			10-9-2019		1,016,091		980,019
Gates Global LLC ±		4.25			7-5-2021		864,063		776,939
Owens-lIlinois Incorporated ±		3.50			9-1-2022		169,575		169,024
Sedgwick Claims Management Services Incorporated ±		3.75			3-1-2021		529,610		508,425
W3 Company ±(i)		9.25			9-13-2020		289,275		130,174
WASH Multifamily Laundry Systems LLC ±		4.25			5-14-2022		1,283,550		1,237,830
WASH Multifamily Laundry Systems LLC ±		8.00			5-12-2023		17,885		16,745
WASH Multifamily Laundry Systems LLC ±(i)		8.00			5-14-2023		102,115		95,605
Waste Industries USA Incorporated ±		4.25			2-27-2020		114,138		113,389
									4,028,150

Diversified Consumer Services : 0.08%
NXP BV ±		3.75			12-7-2020		450,000		448,875

Electrical Equipment : 0.18%
Nusil Technology LLC ±		5.25			4-7-2017		979,685		961,316

Machinery : 0.10%
Onex Wizard Acquisition Company ±		4.25			3-13-2022		535,950		529,385


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Semiconductors & Semiconductor Equipment : 0.18%
Avago Technologies ±%%<		0.00	%		2-1-2023	$	1,000,000	$	983,280

Transportation Infrastructure : 0.22%
HGIM Corporation ±		5.50			6-18-2020		1,577,070		747,137
OSG Bulk Ships Incorporated ±		5.25			8-5-2019		88,650		77,126
OSG International Incorporated ±		5.75			8-5-2019		399,420		367,466
									1,191,729

Information Technology : 3.07%
Internet Software & Services : 0.49%
Black Knight InfoServ LLC ±		3.75			5-27-2022		373,125		370,793
CCC Information Services Incorporated ±		4.00			12-20-2019		582,972		564,026
Infor US Incorporated ±		3.75			6-3-2020		702,323		660,359
Sophia Holding Finance LP ±		4.75			9-30-2022		151,455		147,432
Vertafore Incorporated ±		9.75			10-29-2017		510,000		507,292
Zayo Group LLC ±		3.75			5-6-2021		395,983		389,798
									2,639,700

Semiconductors & Semiconductor Equipment : 0.45%
Avago Technologies ±		3.75			5-6-2021		2,454,612		2,450,783

Software : 0.18%
Emdeon Business Services LLC ±		3.75			11-2-2018		994,885		981,205

Technology Hardware, Storage & Peripherals : 1.95%
CDW LLC ±		3.25			4-29-2020		875,501		858,866
Dell Incorporated ±		4.00			4-29-2020		8,281,792		8,254,628
Kronos Incorporated ±		4.50			10-30-2019		577,535		566,227
Peak 10 Incorporated ±(i)		8.25			6-17-2022		430,000		391,300
Riverbed Technology Incorporated ±		6.00			4-24-2022		496,250		490,876
									10,561,897

Telecommunication Services : 1.83%
Diversified Telecommunication Services : 1.17%
Avaya Incorporated ±		5.12			10-26-2017		199,261		156,059
Level 3 Financing Incorporated ±		4.00			1-15-2020		1,700,000		1,695,750
nTelos Incorporated ±		5.75			11-9-2019		2,004,136		1,994,115
Telesat Canada ±		3.50			3-28-2019		2,557,797		2,506,641
									6,352,565

Wireless Telecommunication Services : 0.66%
LTS Buyer LLC ±		4.00			4-13-2020		1,857,897		1,818,992
LTS Buyer LLC ±(i)		8.00			4-12-2021		566,625		541,835
Syniverse Holdings Incorporated ±		4.00			4-23-2019		1,129,493		766,677
T-Mobile USA Incorporated ±		3.50			11-9-2022		450,000		450,086
									3,577,590

Utilities : 1.40%
Electric Utilities : 1.31%
Green Energy Partners ±		6.50			11-13-2021		1,330,000		1,216,950
Texas Competitive Electric Holdings Company LLC ±(s)		4.66			10-10-2016		20,096,983		5,863,295
									7,080,245


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Independent Power & Renewable Electricity Producers : 0.09%
Calpine Corporation ±		4.00	%		10-9-2019	$	494,885	$	481,206

Total Loans (Cost $101,216,513)									85,015,418

Municipal Obligations : 0.06%
New York : 0.06%
Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)		5.00			4-1-2018		345,000		343,227

Total Municipal Obligations (Cost $345,000)									343,227

Non-Agency Mortgage-Backed Securities : 6.19%
American General Mortgage Loan Series 2010 Class 1A-A3 ±144A		5.65			3-25-2058		156,951		157,412
American Home Mortgage Assets Series 2006-2 Class 1A1 ±		1.25			9-25-2046		20,143		13,730
Argent Securities Incorporated Series 2004-W5 Class AV3B ±		1.32			4-25-2034		73,991		71,484
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18			3-25-2033		221,284		220,809
Asset-Backed Securities Corporation Home Equity Series 2002-HE3 Class M2 ±		2.75			10-15-2032		140,999		140,456
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±		6.04			7-10-2044		1,340,000		1,350,559
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48			1-15-2049		530,000		542,331
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±		6.47			2-10-2051		550,000		591,489
Banc of America Commercial Mortgage Trust Series 2006-5 Class AM		5.45			9-10-2047		750,000		761,889
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50			9-25-2035		389,875		405,437
Banc of America Funding Corporation Series 2009 Class R6-3A1 ±144A		2.06			1-26-2037		65,300		65,244
Banc of America Mortgage Securities Series 2003 Class 1A1 ±		2.50			4-25-2033		351,485		326,902
Banc of America Mortgage Securities Series 2003 Class A-3A1 ±		2.80			2-25-2033		80,957		78,238
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±		5.92			6-11-2050		318,000		334,016
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±		6.08			6-11-2050		100,000		106,231
Centex Home Equity Series 2002-A Class AF6		5.54			1-25-2032		90,741		90,553
Centex Home Equity Series 2002-D Class AF6 ±		4.66			12-25-2032		35,112		35,474
Centex Home Equity Series 2004-B Class AF6		4.69			3-25-2034		227,007		231,253
Citigroup Commercial Mortgage Trust Series 2006 Class C4 ±		6.03			3-15-2049		680,000		683,453
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C ±144A		5.04			9-10-2045		1,000,000		1,035,087
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±		0.80			12-25-2033		59,241		56,902
Commercial Mortgage Trust Series 2012-CR2 Class C ±		5.02			8-15-2045		1,000,000		1,034,696
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.48			2-25-2034		97,099		97,856
Countrywide Home Loans Series 2003-48 Class 2A2 ±		2.81			10-25-2033		119,074		116,734
Credit Suisse Commercial Mortgage Trust Series 2006-C3 Class AM ±		6.01			6-15-2038		1,045,000		1,053,402
Credit Suisse Commercial Mortgage Trust Series 2006-C4 Class AM		5.51			9-15-2039		1,500,000		1,523,437
Credit Suisse Commercial Mortgage Trust Series 2006-C5 Class AM		5.34			12-15-2039		1,000,000		1,018,110
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±		2.24			9-25-2032		586,961		546,938
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		2.89			6-25-2033		163,502		161,989
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±		2.40			3-25-2033		38,595		37,572
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±		1.08			4-25-2036		132,096		131,702
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62			7-25-2034		423,501		428,015
First Horizon Mortgage Pass Through Series 2004-AR1 Class 1A1 ±		2.77			2-25-2034		426,178		420,253
First Horizon Mortgage Pass Through Series 2004-AR4 Class 3A1 ±		2.71			8-25-2034		13,603		13,290
Global Mortgage Securitization Limited Series 2004-A Class A2 ±144A		0.75			11-25-2032		218,190		205,539
GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5		5.48			7-25-2034		75,710		76,761
Great Wolf Trust Series 2015 Class A ±144A		1.88			5-15-2034		1,015,000		998,813
Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4		5.74			12-10-2049		379,892		395,659
GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±		5.99			8-10-2045		880,363		906,852


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
GS Mortgage Securities Trust Series 2010-C1 Class X ±144A(c)		1.60	%		8-10-2043	$	5,468,669	$	292,762
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±(c)		2.70			5-10-2045		4,705,462		418,196
GS Mortgage Securities Trust Series 2014-New Class C 144A		3.79			1-10-2031		1,000,000		965,624
GSAA Home Equity Trust Series 2004-5 Class AF5 ±		4.84			6-25-2034		12,411		12,458
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		0.86			4-25-2035		11,576		11,472
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 ±144A		0.73			3-25-2035		135,048		132,497
GSMPS Mortgage Loan Trust Series 2006-SEA1 Class A ±144A		0.72			5-25-2036		95,616		94,818
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-FL7 Class A 144A±		1.68			5-15-2028		384,158		378,332
JPMorgan Chase Commercial Mortgage Trust Series 2007-CB18 Class AM ±		5.47			6-12-2047		875,000		892,438
JPMorgan Chase Commercial Mortgage Trust Series 2007-LDPX Class AM ±		5.46			1-15-2049		550,000		552,782
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		2.67			7-25-2034		73,059		71,725
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		2.65			7-25-2034		73,124		70,804
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		2.80			6-25-2035		272,959		277,271
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 ±144A		6.00			2-27-2037		48,323		49,290
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 ±144A		6.00			2-27-2037		209,308		214,002
Lehman XS Trust Series 2006-18N Class A5A ±		0.60			12-25-2036		18,397		15,023
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±		2.74			12-25-2033		495,025		488,736
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±		2.82			1-25-2034		18,630		18,070
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±		2.77			11-21-2034		28,010		28,551
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50			1-25-2020		43,975		45,441
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM		5.20			12-12-2049		340,000		347,897
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70			9-12-2049		801,025		834,637
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±		5.25			8-25-2036		86,684		89,168
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM ±		5.91			5-12-2039		565,000		567,025
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±		6.03			6-12-2050		624,033		643,882
Mesa Trust Asset Backed Certificates Series 2001-5 Class A ±144A		1.23			12-25-2031		17,850		16,289
Mid State Trust Series 11 Class A1		4.86			7-15-2038		239,213		254,208
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		1.31			1-25-2029		116,868		109,457
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA ±144A(c)		1.95			8-15-2045		5,602,251		379,868
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		1.48			12-27-2033		534,081		513,894
Morgan Stanley Capital I Trust Series 2006-HQ10 Class AM		5.36			11-12-2041		500,000		508,397
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AJ ±		5.79			7-12-2044		1,000,000		1,009,421
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AM ±		5.77			7-12-2044		25,000		25,206
Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM		5.37			12-15-2043		500,000		508,425
Morgan Stanley Capital I Trust Series 2007-HQ13 Class A3		5.57			12-15-2044		1,227,714		1,281,252
Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B ±144A		5.99			8-15-2045		615,000		638,593
Morgan Stanley Capital I Trust Series 2012-C4 Class C ±144A		5.71			3-15-2045		900,000		948,767
New Century Home Equity Loan Trust Series 2004-3 Class M1 ±		1.36			11-25-2034		1,165,049		1,022,518
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ ±		1.01			3-25-2035		62,015		61,916
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		2.54			5-25-2035		42,751		43,048
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 ±144A		3.06			12-26-2035		27,748		27,787
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88			2-25-2035		444,884		447,278
Residential Funding Mortgage Securities Trust Series 03-S12 Class 2A1		4.00			12-25-2032		64,728		64,408
Saxon Asset Securities Trust Series 2002-1 Class AF5		6.76			12-25-2030		161,885		165,599
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03			6-25-2033		563,897		570,594
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		1.19			4-20-2033		20,719		19,784
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±		2.58			3-25-2034		68,192		67,200
Structured Asset Securities Corporation Series 1998-2 Class A ±		0.95			2-25-2028		265,819		255,243
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		1.02			10-25-2027		77,772		75,816
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		1.56			11-25-2033		173,407		162,650
Vendee Mortgage Trust Series 2003-2 Class IO ±(c)		0.76			5-15-2033		5,728,151		181,468
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50			7-25-2034		182,702		195,820
Total Non-Agency Mortgage-Backed Securities (Cost $33,536,171)									33,534,374


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Dividend yield					Shares		Value
Preferred Stocks : 0.21%
Financials : 0.21%
Banks : 0.21%
GMAC Capital Trust I ±		7.86	%				44,400	$	1,129,980

Total Preferred Stocks (Cost $1,130,339)									1,129,980


	Interest rate			Maturity date		Principal
Yankee Corporate Bonds and Notes : 8.82%
Consumer Discretionary : 0.61%
Diversified Consumer Services : 0.08%
Anglo American Capital Company 144A		4.13			9-27-2022	$	750,000		438,750

Media : 0.53%
Grupo Televisa SAB		6.00			5-15-2018		750,000		805,425
Myriad International Holdings BV		6.00			7-18-2020		500,000		529,740
Myriad International Holdings BV 144A		6.38			7-28-2017		750,000		780,000
WPP Finance 2010		3.63			9-7-2022		750,000		767,735
									2,882,900

Consumer Staples : 0.51%
Beverages : 0.37%
Anadolu Efes		3.38			11-1-2022		1,400,000		1,168,328
Pernod Ricard SA 144A		4.45			1-15-2022		760,000		804,034
									1,972,362

Tobacco : 0.14%
BAT International Finance plc 144A		3.25			6-7-2022		750,000		772,082

Energy : 1.05%
Oil, Gas & Consumable Fuels : 1.05%
Baytex Energy Corporation 144A		5.63			6-1-2024		325,000		188,500
Griffin Coal Mining Company Limited 144A(i)(s)(a)		9.50			12-1-2016		1,685,411		674,164
Griffin Coal Mining Company Limited (i)(s)(a)		9.50			12-1-2016		137,792		55,117
Petrobras International Finance Company		5.38			1-27-2021		670,000		503,338
Petroleos Mexicanos		4.88			1-24-2022		750,000		703,125
Teekay Corporation		8.50			1-15-2020		3,910,000		2,463,300
Teekay Corporation 144A		8.50			1-15-2020		1,000,000		630,000
Woodside Finance Limited 144A		8.75			3-1-2019		405,000		466,041
									5,683,585

Financials : 1.18%
Banks : 0.96%
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		654,716
Corporación Andina de Fomento		4.38			6-15-2022		958,000		1,045,178
Export Import Bank of Korea		5.00			4-11-2022		750,000		856,073
Macquarie Bank Limited 144A		5.00			2-22-2017		750,000		776,468
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		415,000		426,413
Preferred Term Securities XII Limited (i)(s)(a)		0.00			12-24-2033		635,000		0
Royal Bank of Scotland plc		4.38			3-16-2016		750,000		753,105
Standard Chartered Bank 144A		6.40			9-26-2017		650,000		691,427
									5,203,380


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services : 0.22%
GE Capital International Funding Company 144A		2.34	%		11-15-2020	$	527,000	$	529,044
Tyco Electronics Group SA		3.50			2-3-2022		625,000		645,249
									1,174,293

Health Care : 1.25%
Pharmaceuticals : 1.25%
Mallinckrodt plc 144A		5.50			4-15-2025		500,000		445,000
Mallinckrodt plc 144A		5.63			10-15-2023		275,000		257,813
Perrigo Finance plc		3.90			12-15-2024		1,000,000		981,718
Valeant Pharmaceuticals International Incorporated 144A		5.63			12-1-2021		85,000		78,413
Valeant Pharmaceuticals International Incorporated 144A		5.88			5-15-2023		985,000		881,575
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		395,000		355,006
Valeant Pharmaceuticals International Incorporated 144A		6.75			8-15-2018		680,000		674,900
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		3,130,000		3,098,700
									6,773,125

Industrials : 0.52%
Building Products : 0.04%
Allegion plc		5.88			9-15-2023		210,000		216,825

Commercial Services & Supplies : 0.29%
GFL Environmental Incorporated 144A		7.88			4-1-2020		1,575,000		1,567,125

Machinery : 0.04%
Sensata Technologies BV 144A		5.00			10-1-2025		235,000		226,188

Road & Rail : 0.15%
Canadian Pacific Railway Company		4.50			1-15-2022		750,000		811,547

Information Technology : 0.28%
Communications Equipment : 0.14%
Ericsson LM		4.13			5-15-2022		750,000		782,005

Internet Software & Services : 0.14%
Tencent Holdings Limited 144A		4.63			12-12-2016		750,000		768,825

Materials : 1.05%
Containers & Packaging : 0.42%
Ardagh Finance Holdings SA (PIK at 8.63%) 144A¥		8.63			6-15-2019		1,341,968		1,234,611
Ardagh Packaging Finance plc 144A		9.13			10-15-2020		1,020,000		1,022,550
									2,257,161

Metals & Mining : 0.37%
ArcelorMittal SA		5.50			2-25-2017		725,000		708,688
ArcelorMittal SA		6.13			6-1-2025		100,000		72,500
ArcelorMittal SA		7.25			2-25-2022		355,000		288,438
Novelis Incorporated		8.38			12-15-2017		125,000		120,000
Novelis Incorporated		8.75			12-15-2020		350,000		318,115
Vale Overseas Limited		4.38			1-11-2022		750,000		521,250
									2,028,991

Paper & Forest Products : 0.26%
Sappi Limited 144A(i)		7.50			6-15-2032		1,560,000		1,404,000


Portfolio of investments — January 31, 2016 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name			Interest rate			Maturity date		Principal		Value
Telecommunication Services : 2.25%
Diversified Telecommunication Services : 1.98%
Intelsat Jackson Holdings SA				5.50	%		8-1-2023	$	6,775,000	$	5,403,063
Intelsat Jackson Holdings SA				7.25			10-15-2020		650,000		559,000
Intelsat Jackson Holdings SA				7.50			4-1-2021		1,025,000		884,063
Intelsat Luxembourg SA				7.75			6-1-2021		1,435,000		624,225
Intelsat Luxembourg SA				8.13			6-1-2023		5,815,000		2,398,658
Qtel International Finance Limited				5.00			10-19-2025		300,000		312,750
Virgin Media Finance plc 144A				5.38			4-15-2021		162,000		165,645
Virgin Media Finance plc 144A				6.38			4-15-2023		365,000		374,125
											10,721,529

Wireless Telecommunication Services : 0.27%
Globo Communicacoes Participacoes SA 144A				4.88			4-11-2022		750,000		705,000
Telesat Canada Incorporated 144A				6.00			5-15-2017		775,000		780,813
											1,485,813

Utilities : 0.12%
Electric Utilities : 0.12%
Comision Federal de Electricidad 144A				4.88			5-26-2021		650,000		661,375

Total Yankee Corporate Bonds and Notes (Cost $57,180,069)											47,831,861


			Yield					Shares
Short-Term Investments : 3.82%
Investment Companies : 3.82%
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)##				0.40					20,708,853		20,708,853

Total Short-Term Investments (Cost $20,708,853)											20,708,853

Total investments in securities (Cost $850,095,149)*	137.23	%									743,983,542
Other assets and liabilities, net	(37.23	)									(201,831,745	)

Total net assets	100.00	%								$	542,151,797

±	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.

(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.

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

<	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 securities and/or unfunded loans.


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2016 (unaudited)

*	Cost for federal income tax purposes is $855,342,941 and unrealized gains (losses) consists of:


Gross unrealized gains	$	7,290,109
Gross unrealized losses		(118,649,508	)

Net unrealized losses	$	(111,359,399	)

Abbreviations:


ADS		American depositary shares
AUD		Australian dollar
BRL		Brazilian real
COP		Columbian 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
PLN		Polish zloty
REIT		Real estate investment trust
RON		Romanian lei
THB		Thai baht
TRY		Turkish lira
ZAR		South African rand

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

Notes to Portfolio of investments – January 31, 2016 (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).

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.

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.

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, 2016, the Fund had unfunded loan commitments of $1,411,438.

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, use of amortized cost, 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, 2016:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	14,632,699	$	0	$	14,632,699
Asset-backed securities		0		612,955		0		612,955
Common stocks
Materials		702		0		0		702
Telecommunication services		433,545		0		0		433,545
Corporate bonds and notes		0		391,476,566		0		391,476,566
Foreign corporate bonds and notes		0		14,181,865		0		14,181,865
Foreign government bonds		0		134,081,497		0		134,081,497
Loans		0		66,808,660		18,206,758		85,015,418
Municipal obligations		0		343,227		0		343,227
Non-agency mortgage-backed securities		0		33,534,374		0		33,534,374
Preferred stocks
Financials		1,129,980		0		0		1,129,980
Yankee corporate bonds and notes		0		47,102,580		729,281		47,831,861
Short-term investments
Investment companies		20,708,853		0		0		20,708,853

Total assets	$	22,273,080	$	702,774,423	$	18,936,039	$	743,983,542

Liabilities
Forward foreign currency contracts	$	0	$	21,667	$	0	$	21,667

Total liabilities	$	0	$	21,667	$	0	$	21,667

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 within the fair value hierarchy at the end of the reporting period. At January 31, 2016, the Fund did not have any transfers into/out of Level 1.

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, 2015	$	16,654,991		$	729,281		$	17,384,272
Accrued discounts (premiums)		11,183			46,764			57,947
Realized gains (losses)		(936	)		0			(936	)
Change in unrealized gains (losses)		(314,307	)		(46,764	)		(361,071	)
Purchases		0			0			0
Sales		(147,158	)		0			(147,158	)
Transfers into Level 3		3,240,815			0			3,240,815
Transfers out of Level 3		(1,237,830	)		0			(1,237,830	)

Balance as of January 31, 2016	$	18,206,758		$	729,281		$	18,936,039

Change in unrealized gains (losses) relating to securities still held at January 31, 2016	$	(302,042	)	$	(46,764	)	$	(348,806	)

The investment types categorized above 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.

Derivative transactions

During the three months ended January 31, 2016, the Fund entered into forward foreign currency exchange contracts for economic hedging purposes. At January 31, 2016, 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 January 31, 2016		In exchange for U.S. $		Unrealized losses
2-9-2016	State Street Bank	1,437,000,000 HUF	$	5,000,122	$	4,979,037	$	(21,085	)
3-11-2016	State Street Bank	3,000,000 TRY		1,003,902		1,003,320		(582	)

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 — Colombian 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

LIFER — Long Inverse Floating Exempt Receipts

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

SDR — Swedish depositary receipt

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

SPEAR — Short Puttable Exempt Adjustable 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

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/ Karla M. Rabusch

		Karla M. Rabusch
		President

Date: March 24, 2016

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/ Karla M. Rabusch

		Karla M. Rabusch
		President

Date: March 24, 2016

By:		/s/ Jeremy DePalma

		Jeremy DePalma
		Treasurer

Date: March 24, 2016