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: July 31, 2016

ITEM 1.

INVESTMENTS


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


Security name	Interest rate			Maturity date		Principal		Value
Agency Securities : 2.43%
FHLMC ±		4.06	%		9-1-2032	$	1,184,560	$	1,251,739
FHLMC		8.50			7-1-2028		50,171		61,829
FHLMC		8.50			3-1-2030		26,907		27,308
FHLMC Series 1383 ±		2.66			2-1-2037		367,314		389,258
FHLMC Series 196 Class A ±		1.24			12-15-2021		23,275		23,526
FHLMC Series 2011-K16 Class B ±144A		4.60			11-25-2046		1,000,000		1,109,007
FHLMC Series 2011-K701 Class B ±144A		4.29			7-25-2048		165,000		168,968
FHLMC Series 2011-K702 Class B ±144A		4.77			4-25-2044		740,000		771,295
FHLMC Series 2012-K17 Class B ±144A		4.35			12-25-2044		675,000		740,810
FHLMC Series 2012-K18 Class B ±144A		4.25			1-25-2045		810,000		885,660
FHLMC Series 2012-K501 Class C ±144A		3.32			11-25-2046		800,000		801,034
FHLMC Series 2012-K705 Class B ±144A		4.16			9-25-2044		1,000,000		1,036,576
FHLMC Series 2012-K706 Class B ±144A		4.03			11-25-2044		500,000		518,863
FHLMC Series 2012-K706 Class C ±144A		4.03			11-25-2044		805,000		828,570
FHLMC Series 2012-K707 Class B ±144A		3.88			1-25-2047		930,000		961,405
FHLMC Series 2012-K709 Class B ±144A		3.74			4-25-2045		1,000,000		1,032,404
FHLMC Series 2012-K711 Class B ±144A		3.56			8-25-2045		264,000		273,405
FHLMC Series 2013-K30 Class B ±144A		3.56			6-25-2045		700,000		730,612
FHLMC Series 2013-K713 Class B ±144A		3.16			4-25-2046		1,000,000		1,021,329
FHLMC Series 2390 Class FD ±		0.89			12-15-2031		25,267		25,730
FHLMC Series 2567 Class FH ±		0.84			2-15-2033		72,706		72,788
FHLMC Series K007 Class X1 ±(c)		1.16			4-25-2020		923,074		27,728
FHLMC Series K016 Class X1 ±(c)		1.55			10-25-2021		374,326		24,729
FHLMC Series K020 Class X1 ±(c)		1.45			5-25-2022		6,648,152		462,356
FNMA ±		2.27			9-1-2037		496,764		523,920
FNMA		6.00			4-1-2033		64,691		67,563
FNMA		6.50			11-1-2032		57,563		60,470
FNMA		7.50			10-1-2028		1,569		1,577
FNMA		7.50			2-1-2030		29,934		30,237
FNMA		7.50			9-1-2030		74,777		78,551
FNMA		8.00			6-1-2030		2,822		2,838
FNMA Series 1996-46 Class FA ±		0.95			8-25-2021		13,404		13,482
FNMA Series 1997-20 Class IO ±(c)		1.84			3-25-2027		1,060,767		35,095
FNMA Series 2001-25 Class Z		6.00			6-25-2031		149,618		169,627
FNMA Series 2001-35 Class F ±		1.05			7-25-2031		6,558		6,654
FNMA Series 2001-57 Class F ±		0.95			6-25-2031		6,603		6,632
FNMA Series 2002-77 Class FH ±		0.85			12-18-2032		48,783		48,828
FNMA Series 2002-97 Class FR ±		1.00			1-25-2033		11,590		11,733
FNMA Series G91-16 Class F ±		0.90			6-25-2021		12,724		12,794
FNMA Series G92-17 Class F ±		1.50			3-25-2022		48,246		48,993
GNMA		6.50			6-15-2028		32,792		37,670
GNMA		7.25			7-15-2017		563		563
GNMA		7.25			8-15-2017		1,923		1,928
GNMA		7.25			8-15-2017		3,161		3,171
GNMA		7.25			9-15-2017		6,590		6,649
GNMA		7.25			10-15-2017		11,443		11,537
GNMA		7.25			10-15-2017		4,053		4,083
GNMA		7.25			11-15-2017		6,120		6,174
GNMA		7.25			1-15-2018		573		574
GNMA		7.25			1-15-2018		4,208		4,222
GNMA		7.25			2-15-2018		8,159		8,238
GNMA		7.25			5-15-2018		4,862		4,879
Total Agency Securities (Cost $13,522,803)									14,455,611

Asset-Backed Securities : 0.10%
CVS Pass-Through Trust Series T		6.04			12-10-2028		536,035		618,652

Total Asset-Backed Securities (Cost $600,069)									618,652


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


Security name						Shares		Value
Common Stocks : 0.07%
Energy : 0.07%
Oil, Gas & Consumable Fuels : 0.07%
Swift Energy Company †(i)							16,549	$	446,988

Materials : 0.00%
Chemicals : 0.00%
LyondellBasell Industries NV Class A							9		677

Total Common Stocks (Cost $4,298,197)									447,665


	Interest rate			Maturity date		Principal
Corporate Bonds and Notes : 73.77%
Consumer Discretionary : 12.70%
Auto Components : 0.58%
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		618,750
Goodyear Tire & Rubber Company		7.00			5-15-2022		400,000		429,500
Goodyear Tire & Rubber Company		8.75			8-15-2020		468,000		560,430
									3,448,280

Distributors : 0.15%
LKQ Corporation		4.75			5-15-2023		900,000		902,250

Diversified Consumer Services : 0.81%
Service Corporation International		7.50			4-1-2027		2,993,000		3,501,810
Service Corporation International		7.63			10-1-2018		680,000		759,900
Service Corporation International		8.00			11-15-2021		475,000		561,688
									4,823,398

Hotels, Restaurants & Leisure : 2.55%
CCM Merger Incorporated 144A		9.13			5-1-2019		6,270,000		6,575,663
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		202,069
Speedway Motorsports Incorporated		5.13			2-1-2023		425,000		434,563
									15,199,483

Household Durables : 0.47%
American Greetings Corporation		7.38			12-1-2021		2,000,000		2,090,000
Tempur Sealy International Incorporated 144A		5.50			6-15-2026		575,000		581,831
Tempur Sealy International Incorporated		5.63			10-15-2023		105,000		108,675
									2,780,506

Internet & Catalog Retail : 0.14%
Expedia Incorporated		5.95			8-15-2020		750,000		843,356

Leisure Products : 0.11%
Vista Outdoor Incorporated 144A		5.88			10-1-2023		600,000		628,500

Media : 6.19%
Altice US Finance I Corporation 144A		5.38			7-15-2023		1,395,000		1,440,338
Cablevision Systems Corporation		8.63			9-15-2017		1,310,000		1,391,875
CCO Holdings LLC		5.13			2-15-2023		300,000		310,313
CCO Holdings LLC 144A		5.13			5-1-2023		1,780,000		1,840,075
CCO Holdings LLC		5.25			9-30-2022		1,250,000		1,301,563


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


Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
CCO Holdings LLC 144A		5.38	%		5-1-2025	$	4,150,000	$	4,316,000
CCO Holdings LLC 144A		5.50			5-1-2026		215,000		224,406
CCO Holdings LLC 144A		5.75			2-15-2026		3,375,000		3,560,625
CCO Holdings LLC 144A		5.88			4-1-2024		1,250,000		1,334,375
CCO Holdings LLC		6.63			1-31-2022		775,000		818,594
Cequel Communications Holdings I LLC 144A		5.13			12-15-2021		1,335,000		1,328,147
Cequel Communications Holdings I LLC 144A		7.75			7-15-2025		2,030,000		2,161,950
Cinemark USA Incorporated		4.88			6-1-2023		325,000		331,500
CSC Holdings LLC		7.88			2-15-2018		1,000,000		1,080,000
CSC Holdings LLC		8.63			2-15-2019		383,000		426,806
EMI Music Publishing 144A		7.63			6-15-2024		525,000		563,063
Gray Television Incorporated 144A		5.88			7-15-2026		1,025,000		1,053,700
Gray Television Incorporated		7.50			10-1-2020		4,600,000		4,801,250
Interpublic Group of Companies		4.00			3-15-2022		750,000		797,531
Lamar Media Corporation		5.88			2-1-2022		690,000		720,188
LIN Television Corporation		6.38			1-15-2021		275,000		287,375
Live Nation Entertainment Incorporated 144A		7.00			9-1-2020		200,000		208,000
National CineMedia LLC		6.00			4-15-2022		1,725,000		1,789,688
National CineMedia LLC		7.88			7-15-2021		1,000,000		1,035,000
Nexstar Broadcasting Group Incorporated 144A		5.63			8-1-2024		75,000		76,219
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		175,000		180,031
Nexstar Broadcasting Group Incorporated		6.88			11-15-2020		1,750,000		1,833,125
Outfront Media Capital Corporation		5.63			2-15-2024		20,000		21,100
Outfront Media Capital Corporation		5.88			3-15-2025		775,000		826,344
Time Warner Cable Incorporated		4.00			1-15-2022		750,000		824,516
									36,883,697

Multiline Retail : 0.10%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		600,000		621,152

Specialty Retail : 1.60%
ABC Supply Company Incorporated 144A		5.63			4-15-2021		450,000		464,625
ABC Supply Company Incorporated 144A		5.75			12-15-2023		300,000		315,750
Advance Auto Parts Incorporated		4.50			1-15-2022		600,000		646,608
Asbury Automotive Group Incorporated		6.00			12-15-2024		1,175,000		1,204,963
Century Intermediate Holding Company (PIK at 10.50%) 144A(i)¥		9.75			2-15-2019		300,000		306,375
L Brands Incorporated		6.63			4-1-2021		750,000		860,625
Penske Auto Group Incorporated		5.38			12-1-2024		2,150,000		2,139,250
Penske Auto Group Incorporated		5.50			5-15-2026		375,000		370,313
Penske Auto Group Incorporated		5.75			10-1-2022		1,155,000		1,172,441
Sonic Automotive Incorporated		5.00			5-15-2023		1,224,000		1,208,700
Sonic Automotive Incorporated		7.00			7-15-2022		825,000		868,313
									9,557,963

Consumer Staples : 1.29%
Beverages : 0.14%
Cott Beverages Incorporated		6.75			1-1-2020		790,000		828,513

Food & Staples Retailing : 0.11%
SABMiller Holdings Incorporated 144A		3.75			1-15-2022		600,000		651,955

Food Products : 0.87%
B&G Foods Incorporated		4.63			6-1-2021		300,000		308,250
Darling Ingredients Incorporated		5.38			1-15-2022		180,000		186,300
Kraft Foods Group Incorporated		3.50			6-6-2022		750,000		807,955
Pilgrim’s Pride Corporation 144A		5.75			3-15-2025		1,130,000		1,144,125
Pinnacle Foods Incorporated 144A		5.63			5-1-2024		325,000		331,702
Pinnacle Foods Incorporated 144A		5.88			1-15-2024		75,000		79,688
Post Holdings Incorporated 144A%%		5.00			8-15-2026		700,000		697,813


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


Security name	Interest rate			Maturity date		Principal		Value
Food Products (continued)
Prestige Brands Incorporated 144A		6.38	%		3-1-2024	$	130,000	$	137,150
Simmons Foods Incorporated 144A		7.88			10-1-2021		1,100,000		1,014,750
TreeHouse Foods Incorporated 144A		6.00			2-15-2024		50,000		53,750
US Foods Incorporated 144A		5.88			6-15-2024		410,000		428,450
									5,189,933

Household Products : 0.04%
Central Garden & Pet Company		6.13			11-15-2023		250,000		265,000

Tobacco : 0.13%
Reynolds American Incorporated		6.88			5-1-2020		650,000		769,649

Energy : 18.02%
Energy Equipment & Services : 5.54%
Bristow Group Incorporated		6.25			10-15-2022		4,480,000		3,180,800
Cleaver Brooks Incorporated 144A		8.75			12-15-2019		95,000		97,850
Era Group Incorporated		7.75			12-15-2022		2,875,000		2,458,125
Hilcorp Energy Company 144A		5.00			12-1-2024		1,025,000		953,250
Hilcorp Energy Company 144A		5.75			10-1-2025		1,375,000		1,299,375
Hilcorp Energy Company 144A		7.63			4-15-2021		325,000		332,313
Holly Energy Partners LP 144A		6.00			8-1-2024		650,000		658,125
Hornbeck Offshore Services Incorporated		1.50			9-1-2019		1,575,000		914,484
Hornbeck Offshore Services Incorporated		5.00			3-1-2021		3,100,000		1,945,250
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		1,860,000		1,222,950
NGPL PipeCo LLC 144A		7.12			12-15-2017		2,060,000		2,152,700
NGPL PipeCo LLC 144A		7.77			12-15-2037		11,920,000		12,277,600
NGPL PipeCo LLC 144A		9.63			6-1-2019		435,000		455,663
PHI Incorporated		5.25			3-15-2019		5,525,000		5,083,000
									33,031,485

Oil, Gas & Consumable Fuels : 12.48%
Alpha Natural Resources Incorporated (s)		6.25			6-1-2021		475,000		1,781
Arch Coal Incorporated (s)		7.00			6-15-2019		1,200,000		22,800
Arch Coal Incorporated (s)		7.25			6-15-2021		475,000		9,500
Continental Resources Incorporated		5.00			9-15-2022		825,000		771,375
Crestwood Midstream Partners LP		6.13			3-1-2022		225,000		211,077
Crestwood Midstream Partners LP		6.25			4-1-2023		1,350,000		1,265,625
Denbury Resources Incorporated		4.63			7-15-2023		4,725,000		2,835,000
Denbury Resources Incorporated		5.50			5-1-2022		655,000		415,925
Denbury Resources Incorporated		6.38			8-15-2021		1,460,000		970,900
El Paso LLC		6.50			4-1-2020		750,000		839,960
Enable Midstream Partner LP		2.40			5-15-2019		2,350,000		2,274,466
Enable Midstream Partner LP		3.90			5-15-2024		1,750,000		1,631,789
Enable Midstream Partner LP		5.00			5-15-2044		275,000		228,277
Enable Oklahoma Intrastate Transmission LLC 144A		6.25			3-15-2020		250,000		263,427
Energy Transfer Partners LP		5.20			2-1-2022		750,000		800,556
Enlink Midstream LLC		4.15			6-1-2025		2,950,000		2,769,197
Enlink Midstream LLC		4.40			4-1-2024		3,200,000		3,117,770
Exterran Partners LP		6.00			4-1-2021		2,225,000		2,052,563
Kinder Morgan Energy Partners LP		3.95			9-1-2022		750,000		768,928
Kinder Morgan Incorporated		5.55			6-1-2045		925,000		928,008
Kinder Morgan Incorporated		6.50			9-15-2020		285,000		318,948
Kinder Morgan Incorporated		7.00			6-15-2017		530,000		551,229
Kinder Morgan Incorporated (i)		7.42			2-15-2037		800,000		839,718
Kinder Morgan Incorporated		7.80			8-1-2031		1,850,000		2,203,648
Nabors Industries Incorporated		4.63			9-15-2021		750,000		665,686
Overseas Shipholding Group Incorporated		8.13			3-30-2018		2,805,000		2,833,050
Phillips 66		4.30			4-1-2022		625,000		685,145
Pioneer Natural Resources Company		3.95			7-15-2022		750,000		790,095
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		4,450,000		4,583,500


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


Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Rockies Express Pipeline LLC 144A		6.88	%		4-15-2040	$	5,199,000	$	5,121,015
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		2,390,000		2,366,100
Rose Rock Midstream LP		5.63			7-15-2022		1,200,000		1,077,000
Rose Rock Midstream LP		5.63			11-15-2023		825,000		736,313
Sabine Oil & Gas Corporation (i)(s)		7.25			6-15-2019		520,000		5,200
Sabine Oil & Gas Corporation (i)(s)		7.50			9-15-2020		3,500,000		70,000
Sabine Pass Liquefaction LLC		5.63			2-1-2021		1,375,000		1,419,688
Sabine Pass Liquefaction LLC		5.63			4-15-2023		1,710,000		1,744,200
Sabine Pass Liquefaction LLC		5.63			3-1-2025		460,000		469,632
Sabine Pass Liquefaction LLC		5.75			5-15-2024		1,625,000		1,665,625
Sabine Pass Liquefaction LLC 144A		5.88			6-30-2026		625,000		641,406
Sabine Pass Liquefaction LLC		6.25			3-15-2022		3,550,000		3,714,188
Sabine Pass LNG LP		6.50			11-1-2020		2,845,000		2,958,800
Sabine Pass LNG LP		7.50			11-30-2016		3,025,000		3,074,156
SemGroup Corporation		7.50			6-15-2021		2,755,000		2,644,800
Southern Star Central Corporation 144A		5.13			7-15-2022		50,000		49,500
Southwestern Energy Company		4.10			3-15-2022		425,000		376,125
Suburban Propane Partners LP		7.38			8-1-2021		309,000		321,360
Swift Energy Company (i)(s)(a)		7.13			6-1-2017		5,696,000		0
Swift Energy Company (i)(s)(a)		8.88			1-15-2020		1,075,000		0
Tesoro Logistics LP		6.13			10-15-2021		225,000		234,023
Tesoro Logistics LP		6.38			5-1-2024		450,000		474,471
Ultra Petroleum Corporation 144A(s)		5.75			12-15-2018		410,000		307,500
Ultra Petroleum Corporation 144A(s)		6.13			10-1-2024		8,475,000		6,356,250
Valvoline Incorporated 144A		5.50			7-15-2024		375,000		391,406
Western Gas Partners LP		3.95			6-1-2025		175,000		171,721
Western Gas Partners LP		4.00			7-1-2022		175,000		176,086
Western Gas Partners LP		5.38			6-1-2021		728,000		774,965
Western Gas Partners LP		5.45			4-1-2044		650,000		635,602
Williams Partners LP		3.35			8-15-2022		750,000		713,749
									74,340,824

Financials : 13.55%
Banks : 0.89%
Bank of America Corporation		5.70			1-24-2022		250,000		292,900
CIT Group Incorporated		5.25			3-15-2018		100,000		104,000
CIT Group Incorporated 144A		5.50			2-15-2019		1,275,000		1,351,500
CIT Group Incorporated 144A		6.63			4-1-2018		550,000		584,375
Citigroup Incorporated		4.50			1-14-2022		250,000		276,443
Citigroup Incorporated		6.00			8-15-2017		650,000		681,023
City National Bank		5.38			7-15-2022		500,000		587,293
HSBC Bank USA		6.00			8-9-2017		650,000		677,021
JPMorgan Chase & Company		3.38			5-1-2023		750,000		766,595
									5,321,150

Capital Markets : 1.00%
ACE Securities Corporation ±		3.08			6-25-2033		382,125		377,632
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		750,000		878,603
Goldman Sachs Group Incorporated		5.75			1-24-2022		750,000		873,071
Jefferies Finance LLC 144A		6.88			4-15-2022		3,560,000		3,146,150
Neuberger Berman Group LLC 144A		5.88			3-15-2022		650,000		673,563
									5,949,019

Consumer Finance : 3.06%
Ally Financial Incorporated		8.00			12-31-2018		780,000		866,775
Ally Financial Incorporated		8.00			3-15-2020		755,000		866,363
Discover Financial Services		5.20			4-27-2022		750,000		828,667
Ford Motor Credit Company LLC		5.00			5-15-2018		650,000		687,251


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


Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance (continued)
Ford Motor Credit Company LLC		8.00	%		12-15-2016	$	250,000	$	256,338
General Motors Financial Company		3.70			5-9-2023		750,000		766,346
Navient Corporation		8.00			3-25-2020		1,930,000		2,062,688
SLM Corporation		8.45			6-15-2018		1,675,000		1,821,563
Springleaf Finance Corporation		5.75			9-15-2016		1,100,000		1,102,750
Springleaf Finance Corporation		6.00			6-1-2020		1,735,000		1,682,950
Springleaf Finance Corporation		6.50			9-15-2017		200,000		208,000
Springleaf Finance Corporation		6.90			12-15-2017		4,550,000		4,802,616
Springleaf Finance Corporation		7.75			10-1-2021		975,000		967,688
Springleaf Finance Corporation		8.25			12-15-2020		175,000		181,125
Springleaf Finance Corporation		8.25			10-1-2023		1,160,000		1,148,400
									18,249,520

Diversified Financial Services : 1.70%
Denali Borrower LLC 144A		5.63			10-15-2020		3,510,000		3,681,288
General Electric Capital Corporation		4.65			10-17-2021		187,000		214,313
Infinity Acquisition LLC 144A(i)		7.25			8-1-2022		1,735,000		1,526,800
ING US Incorporated		5.50			7-15-2022		750,000		852,528
Moody’s Corporation		5.50			9-1-2020		1,302,000		1,475,463
NewStar Financial Incorporated		7.25			5-1-2020		2,450,000		2,344,773
									10,095,165

Insurance : 1.85%
American International Group Incorporated		4.88			6-1-2022		750,000		841,505
Endurance Specialty Holdings Limited		7.00			7-15-2034		575,000		684,718
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		743,516
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		1,950,000		1,881,750
Hub International Limited 144A		7.88			10-1-2021		3,950,000		3,959,875
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		838,934
ProAssurance Corporation		5.30			11-15-2023		750,000		808,788
Progressive Corporation ±		6.70			6-15-2067		600,000		558,000
W.R. Berkley Corporation		4.63			3-15-2022		650,000		712,847
									11,029,933

Real Estate Management & Development : 0.54%
Onex Corporation 144A		7.75			1-15-2021		3,205,000		3,237,050

REITs : 4.51%
Alexandria Real Estate Company		4.60			4-1-2022		650,000		705,433
American Tower Corporation		5.90			11-1-2021		650,000		759,700
Crown Castle International Corporation		4.88			4-15-2022		460,000		509,399
Crown Castle International Corporation		5.25			1-15-2023		95,000		108,743
DuPont Fabros Technology Incorporated LP		5.63			6-15-2023		2,975,000		3,112,594
DuPont Fabros Technology Incorporated LP		5.88			9-15-2021		4,655,000		4,879,022
Equinix Incorporated		5.88			1-15-2026		425,000		457,938
ESH Hospitality Incorporated 144A		5.25			5-1-2025		1,825,000		1,820,438
Essex Portfolio LP		3.63			8-15-2022		750,000		793,309
Health Care REIT Incorporated		5.25			1-15-2022		650,000		732,583
Iron Mountain Incorporated 144A		4.38			6-1-2021		1,175,000		1,216,125
Iron Mountain Incorporated 144A		5.38			6-1-2026		950,000		961,875
Iron Mountain Incorporated 144A		6.00			10-1-2020		230,000		242,650
Iron Mountain Incorporated		6.00			8-15-2023		2,960,000		3,145,000
Sabra Health Care Incorporated		5.38			6-1-2023		900,000		906,750
Sabra Health Care Incorporated		5.50			2-1-2021		1,100,000		1,146,750
The Geo Group Incorporated		5.13			4-1-2023		800,000		802,000
The Geo Group Incorporated		5.88			1-15-2022		2,740,000		2,811,925
The Geo Group Incorporated		5.88			10-15-2024		840,000		861,000
The Geo Group Incorporated		6.00			4-15-2026		184,000		188,830
Ventas Realty LP		4.25			3-1-2022		650,000		704,217
									26,866,281


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


Security name	Interest rate			Maturity date		Principal		Value
Health Care : 6.41%
Biotechnology : 0.14%
Amgen Incorporated		3.63	%		5-15-2022	$	750,000	$	812,226

Health Care Equipment & Supplies : 1.06%
Crimson Merger Sub Incorporated 144A		6.63			5-15-2022		2,400,000		2,046,000
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		208,750
Hologic Incorporated 144A		5.25			7-15-2022		670,000		710,200
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		1,425,000		1,536,335
Surgery Center Holdings Company 144A		8.88			4-15-2021		1,710,000		1,821,150
									6,322,435

Health Care Providers & Services : 3.83%
Acadia Healthcare Company Incorporated		6.50			3-1-2024		190,000		196,293
Centene Corporation		5.75			6-1-2017		1,000,000		1,030,000
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		852,691
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		445,000		450,006
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		525,000		554,531
Express Scripts Holding Company		3.90			2-15-2022		665,000		720,877
HCA Incorporated		6.50			2-15-2020		1,875,000		2,064,844
HealthSouth Corporation		5.75			9-15-2025		575,000		593,757
Humana Incorporated		7.20			6-15-2018		750,000		826,823
Mednax Incorporated 144A		5.25			12-1-2023		475,000		495,188
Molina Healthcare Incorporated 144A		5.38			11-15-2022		475,000		484,500
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		675,000		720,563
MPT Operating Partnership LP		5.25			8-1-2026		1,250,000		1,314,063
MPT Operating Partnership LP		6.38			2-15-2022		1,075,000		1,128,750
MPT Operating Partnership LP		6.38			3-1-2024		110,000		119,900
MPT Operating Partnership LP		6.88			5-1-2021		775,000		802,358
Select Medical Corporation		6.38			6-1-2021		5,565,000		5,505,900
Team Health Incorporated 144A		7.25			12-15-2023		950,000		1,035,500
Tenet Healthcare Corporation		6.00			10-1-2020		1,475,000		1,559,813
Vizient Incorporated 144A		10.38			3-1-2024		2,100,000		2,367,750
									22,824,107

Health Care Technology : 0.87%
Change Healthcare Holdings Incorporated 144A		6.00			2-15-2021		500,000		530,000
Change Healthcare Holdings Incorporated		11.00			12-31-2019		4,400,000		4,653,000
									5,183,000

Life Sciences Tools & Services : 0.14%
Life Technologies Corporation		6.00			3-1-2020		750,000		845,462

Pharmaceuticals : 0.37%
Endo Finance LLC 144A		5.38			1-15-2023		375,000		325,313
Endo Finance LLC 144A		5.75			1-15-2022		715,000		643,500
Valeant Pharmaceuticals International Incorporated 144A		6.75			8-15-2021		425,000		381,438
Valeant Pharmaceuticals International Incorporated 144A		7.25			7-15-2022		75,000		66,938
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		782,883
									2,200,072

Industrials : 5.48%
Aerospace & Defense : 0.18%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		1,060,909

Airlines : 0.36%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,320,000		1,542,420


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


Security name	Interest rate			Maturity date		Principal		Value
Airlines (continued)
Delta Air Lines Incorporated		4.75	%		11-7-2021	$	541,839	$	580,445
									2,122,865

Commercial Services & Supplies : 1.18%
Aramark Services Incorporated		5.13			1-15-2024		120,000		123,900
Covanta Holding Corporation		5.88			3-1-2024		2,260,000		2,237,400
Covanta Holding Corporation		6.38			10-1-2022		1,500,000		1,548,750
Covanta Holding Corporation		7.25			12-1-2020		1,480,000		1,533,650
Penske Truck Leasing Company 144A		3.75			5-11-2017		750,000		762,624
Republic Services Incorporated		3.55			6-1-2022		750,000		810,982
									7,017,306

Construction & Engineering : 0.64%
AECOM		5.75			10-15-2022		215,000		226,288
AECOM		5.88			10-15-2024		2,610,000		2,799,225
United Rentals North America Incorporated		4.63			7-15-2023		800,000		816,000
									3,841,513

Professional Services : 0.14%
Ascent Capital Group Incorporated		4.00			7-15-2020		375,000		224,063
Verisk Analytics Incorporated		5.80			5-1-2021		530,000		609,390
									833,453

Road & Rail : 0.11%
TTX Company 144A		2.60			6-15-2020		650,000		663,470

Technology Hardware, Storage & Peripherals : 1.47%
Diamond 1 Finance Corporation / Diamond 2 Finance Corporation 144A		5.88			6-15-2021		2,825,000		2,953,196
Diamond 1 Finance Corporation / Diamond 2 Finance Corporation 144A		7.13			6-15-2024		5,400,000		5,811,561
									8,764,757

Trading Companies & Distributors : 1.40%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		4,650,000		4,905,750
H&E Equipment Services Incorporated		7.00			9-1-2022		3,250,000		3,388,125
International Lease Finance Corporation 144A		7.13			9-1-2018		75,000		83,063
									8,376,938

Information Technology : 4.23%
Communications Equipment : 0.32%
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		1,100,000		1,160,500
Motorola Solutions Incorporated		3.75			5-15-2022		750,000		768,698
									1,929,198

Electronic Equipment, Instruments & Components : 1.36%
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		831,064
Zebra Technologies Corporation		7.25			10-15-2022		1,450,000		1,547,875
									8,115,502

Internet Software & Services : 0.22%
Infor Software Parent LLC		6.50			5-15-2022		550,000		545,875
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13			5-1-2021		550,000		512,875


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


Security name	Interest rate			Maturity date		Principal		Value
Internet Software & Services (continued)
Zayo Group LLC		6.00	%		4-1-2023	$	75,000	$	78,000
Zayo Group LLC		6.38			5-15-2025		175,000		183,094
									1,319,844

IT Services : 0.23%
First Data Corporation 144A		5.00			1-15-2024		420,000		423,150
First Data Corporation 144A		5.75			1-15-2024		320,000		322,800
First Data Corporation 144A		6.75			11-1-2020		585,000		609,863
									1,355,813

Semiconductors & Semiconductor Equipment : 0.60%
Micron Technology Incorporated 144A		5.25			8-1-2023		375,000		336,563
Micron Technology Incorporated 144A		5.25			1-15-2024		700,000		628,250
Micron Technology Incorporated		5.50			2-1-2025		1,100,000		987,250
Micron Technology Incorporated 144A		5.63			1-15-2026		900,000		798,750
Micron Technology Incorporated		5.88			2-15-2022		850,000		820,250
									3,571,063

Software : 0.64%
Activision Blizzard Incorporated 144A		5.63			9-15-2021		705,000		737,606
Activision Blizzard Incorporated 144A		6.13			9-15-2023		175,000		190,969
Boxer Parent Company Incorporated (PIK at 9.75%) 144A¥		9.00			10-15-2019		2,160,000		1,825,200
CA Incorporated		5.38			12-1-2019		750,000		825,671
SS&C Technologies Incorporated		5.88			7-15-2023		200,000		207,500
									3,786,946

Technology Hardware, Storage & Peripherals : 0.86%
Hewlett-Packard Company		4.05			9-15-2022		750,000		796,728
NCR Corporation		5.88			12-15-2021		230,000		239,200
NCR Corporation		6.38			12-15-2023		3,950,000		4,088,250
									5,124,178

Materials : 1.57%
Chemicals : 0.14%
Dow Chemical Company		4.13			11-15-2021		750,000		824,222

Containers & Packaging : 1.39%
Ball Corporation		5.25			7-1-2025		190,000		205,200
Berry Plastics Corporation		5.13			7-15-2023		350,000		361,813
Berry Plastics Corporation		6.00			10-15-2022		215,000		228,169
Crown Cork & Seal Company Incorporated		7.38			12-15-2026		35,000		38,938
Crown Cork & Seal Company Incorporated (i)		7.50			12-15-2096		600,000		612,000
Owens-Brockway Glass Container Incorporated 144A		5.88			8-15-2023		425,000		456,875
Owens-Illinois Incorporated 144A		5.38			1-15-2025		575,000		597,281
Owens-Illinois Incorporated 144A		6.38			8-15-2025		2,950,000		3,235,781
Owens-Illinois Incorporated		7.80			5-15-2018		1,295,000		1,418,025
Sealed Air Corporation 144A		5.13			12-1-2024		1,100,000		1,156,375
									8,310,457

Metals & Mining : 0.04%
Indalex Holdings Corporation (a)(i)(s)		11.50			2-1-2020		3,170,000		0
Kaiser Aluminum Corporation 144A		5.88			5-15-2024		200,000		210,000
									210,000


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


Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services : 7.87%
Diversified Telecommunication Services : 2.81%
AT&T Incorporated		3.80	%		3-15-2022	$	750,000	$	808,935
CenturyLink Incorporated		5.80			3-15-2022		600,000		613,500
Citizens Communications Company		7.88			1-15-2027		355,000		310,767
Frontier Communications Corporation		8.13			10-1-2018		845,000		929,500
Frontier Communications Corporation		8.25			4-15-2017		1,040,000		1,086,800
Frontier Communications Corporation		8.50			4-15-2020		525,000		564,900
GCI Incorporated		6.75			6-1-2021		2,350,000		2,420,500
GCI Incorporated		6.88			4-15-2025		1,385,000		1,436,938
Level 3 Financing Incorporated		5.13			5-1-2023		975,000		1,004,250
Level 3 Financing Incorporated 144A		5.25			3-15-2026		650,000		680,063
Level 3 Financing Incorporated		5.38			8-15-2022		300,000		315,000
Level 3 Financing Incorporated		5.38			1-15-2024		700,000		734,125
Level 3 Financing Incorporated		5.38			5-1-2025		975,000		1,023,750
Level 3 Financing Incorporated		5.63			2-1-2023		350,000		367,500
Level 3 Financing Incorporated		6.13			1-15-2021		175,000		182,219
SBA Communications Corporation		5.63			10-1-2019		160,000		165,200
Syniverse Holdings Incorporated		9.13			1-15-2019		6,805,000		3,393,994
Windstream Corporation		6.38			8-1-2023		800,000		692,000
									16,729,941

Wireless Telecommunication Services : 5.06%
Crown Castle Towers LLC 144A		6.11			1-15-2040		750,000		835,904
MetroPCS Wireless Incorporated		6.63			11-15-2020		3,300,000		3,399,000
SBA Communications Corporation		4.88			7-15-2022		640,000		656,000
SBA Communications Corporation		5.75			7-15-2020		2,000,000		2,060,000
Sprint Capital Corporation		6.88			11-15-2028		13,190,000		11,277,412
Sprint Capital Corporation		8.75			3-15-2032		2,075,000		1,950,500
Sprint Communications Incorporated		7.00			8-15-2020		225,000		213,705
Sprint Corporation		7.13			6-15-2024		600,000		534,000
Sprint Corporation		7.63			2-15-2025		400,000		360,000
T-Mobile USA Incorporated		6.00			3-1-2023		300,000		317,172
T-Mobile USA Incorporated		6.13			1-15-2022		85,000		89,516
T-Mobile USA Incorporated		6.25			4-1-2021		165,000		172,631
T-Mobile USA Incorporated		6.38			3-1-2025		825,000		882,750
T-Mobile USA Incorporated		6.46			4-28-2019		160,000		163,000
T-Mobile USA Incorporated		6.50			1-15-2024		80,000		85,600
T-Mobile USA Incorporated		6.50			1-15-2026		500,000		541,500
T-Mobile USA Incorporated		6.54			4-28-2020		165,000		170,363
T-Mobile USA Incorporated		6.63			4-1-2023		655,000		703,012
T-Mobile USA Incorporated		6.63			4-28-2021		925,000		972,406
T-Mobile USA Incorporated		6.73			4-28-2022		3,490,000		3,655,775
T-Mobile USA Incorporated		6.84			4-28-2023		1,060,000		1,131,550
									30,171,796

Utilities : 2.65%
Electric Utilities : 0.45%
Great Plains Energy Incorporated		4.85			6-1-2021		750,000		824,930
Otter Tail Corporation (i)		9.00			12-15-2016		1,835,000		1,878,855
									2,703,785

Gas Utilities : 0.12%
AmeriGas Finance LLC		5.63			5-20-2024		350,000		362,250
AmeriGas Finance LLC		5.88			8-20-2026		350,000		366,625
									728,875

Independent Power & Renewable Electricity Producers : 1.84%
Calpine Corporation 144A		6.00			1-15-2022		515,000		538,175


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


Security name	Interest rate			Maturity date		Principal		Value
Independent Power & Renewable Electricity Producers (continued)
Calpine Corporation 144A		7.88	%		1-15-2023	$	530,000	$	560,475
NSG Holdings LLC 144A		7.75			12-15-2025		2,316,942		2,479,128
Reliant Energy Incorporated		9.68			7-2-2026		410,000		381,300
TerraForm Power Operating LLC 144A		5.88			2-1-2023		5,125,000		5,144,219
TerraForm Power Operating LLC 144A		6.13			6-15-2025		1,850,000		1,840,750
									10,944,047

Multi-Utilities : 0.24%
Ameren Illinois Company		9.75			11-15-2018		500,000		591,539
CMS Energy Corporation		5.05			3-15-2022		750,000		853,362
									1,444,901

Total Corporate Bonds and Notes (Cost $430,459,329)									439,653,143

Foreign Corporate Bonds and Notes @: 2.54%
Consumer Discretionary : 0.06%
Auto Components : 0.02%
HP Pelzer Holding GmbH (EUR)		7.50			7-15-2021		100,000		118,788

Internet & Catalog Retail : 0.04%
Priceline Group Incorporated (EUR)		2.38			9-23-2024		200,000		240,943

Consumer Staples : 0.15%
Food Products : 0.15%
BRF S.A. 144A (BRL)		7.75			5-22-2018		3,100,000		866,449

Energy : 0.25%
Energy Equipment & Services : 0.02%
Rapid Holding GmbH 144A (EUR)		6.63			11-15-2020		100,000		116,927

Oil, Gas & Consumable Fuels : 0.23%
Petroleos Mexicanos 144A (MXN)		7.19			9-12-2024		28,200,000		1,368,969

Financials : 1.64%
Banks : 1.56%
Eurofima (AUD)		6.25			12-28-2018		2,450,000		2,035,308
European Investment Bank (ZAR)		9.00			3-31-2021		17,400,000		1,285,689
KfW (TRY)		5.00			1-16-2017		11,400,000		3,730,486
KfW (AUD)		5.00			3-19-2024		1,300,000		1,163,899
Landwirtschaftliche Rentenbank (ZAR)		8.25			5-23-2022		15,000,000		1,076,337
									9,291,719

Diversified Financial Services : 0.08%
AA Bond Company Limited (GBP)		4.25			7-31-2043		200,000		279,786
TES Finance plc (GBP)		6.75			7-15-2020		200,000		211,752
									491,538

Materials : 0.12%
Chemicals : 0.12%
Albemarle Corporation (EUR)		1.88			12-8-2021		600,000		711,485


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


Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services : 0.32%
Diversified Telecommunication Services : 0.07%
Verizon Communications Incorporated (EUR)		3.25	%		2-17-2026		300,000	$	413,747

Wireless Telecommunication Services : 0.25%
America Movil SAB de CV (MXN)		7.13			12-9-2024		28,850,000		1,514,663

Total Foreign Corporate Bonds and Notes (Cost $19,928,359)									15,135,228

Foreign Government Bonds @: 24.00%
Brazil (BRL)		10.00			1-1-2017		38,525,000		11,792,234
Brazil (BRL)		10.00			1-1-2025		32,800,000		9,292,140
Colombia (COP)		7.00			9-11-2019		18,500,000,000		6,005,510
Colombia (COP)		7.00			5-4-2022		18,650,000,000		5,994,420
Colombia (COP)		7.75			4-14-2021		5,250,000,000		1,767,814
Hungary (HUF)		6.75			11-24-2017		1,305,000,000		5,055,165
Indonesia (IDR)		7.88			4-15-2019		133,640,000,000		10,519,478
Indonesia (IDR)		10.00			7-15-2017		50,000,000,000		3,947,158
Korea (KRW)		5.25			3-10-2027		2,830,000,000		3,480,747
Malaysia (MYR)		3.66			10-15-2020		20,700,000		5,215,307
Malaysia (MYR)		4.18			7-15-2024		19,850,000		5,094,118
Mexico (MXN)		4.75			6-14-2018		113,800,000		6,020,372
Mexico (MXN)		5.75			3-5-2026		77,000,000		4,049,321
Mexico (MXN)		6.50			6-10-2021		40,000,000		2,211,078
Mexico (MXN)		10.00			12-5-2024		76,220,000		5,174,846
Poland (PLN)		2.50			7-25-2026		42,500,000		10,555,190
Poland (PLN)		3.25			7-25-2025		34,100,000		9,056,228
Queensland Treasury (AUD)		5.75			7-22-2024		4,100,000		3,915,364
Republic of South Africa (ZAR)		7.75			2-28-2023		103,000,000		7,201,114
Republic of South Africa (ZAR)		8.00			12-21-2018		129,000,000		9,340,320
State of New South Wales Australia (AUD)		5.00			8-20-2024		3,900,000		3,624,028
Thailand (THB)		3.25			6-16-2017		110,000,000		3,207,181
Thailand (THB)		3.85			12-12-2025		108,500,000		3,584,681
Turkey (TRY)		6.30			2-14-2018		7,325,000		2,364,881
Turkey (TRY)		9.00			3-8-2017		13,600,000		4,554,654
Total Foreign Government Bonds (Cost $163,551,180)									143,023,349

Loans : 14.44%
Consumer Discretionary : 3.01%
Auto Components : 0.56%
Allison Transmission Incorporated ±		3.50			8-23-2019	$	3,350,010		3,351,417

Distributors : 0.50%
Spin Holdco Incorporated ±		4.25			11-14-2019		2,994,944		2,960,503

Hotels, Restaurants & Leisure : 0.10%
CCM Merger Incorporated ±		4.50			8-8-2021		603,825		604,833

Household Products : 0.18%
Anchor Glass Container Corporation ±		4.75			7-1-2022		1,053,006		1,055,638

Leisure Products : 0.35%
AMF Bowling Centers Incorporated ±		7.25			9-18-2021		1,711,926		1,711,926
Life Time Fitness Incorporated ±		4.25			6-10-2022		372,120		371,111
									2,083,037

Media : 0.85%
Altice US Finance I Corporation ±		4.25			12-14-2022		520,392		521,370


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


Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
Cablevision Systems Corporation ±		5.00	%		10-9-2022	$	698,250	$	702,440
Charter Communications Operating LLC ±		3.50			1-24-2023		917,700		921,371
Entercom Radio LLC ±		4.00			11-23-2018		996,374		996,792
Learfield Communications Incorporated ±		4.25			10-9-2020		1,654,615		1,652,034
Mission Broadcasting Incorporated ±		3.75			10-1-2020		124,591		124,594
Nexstar Broadcasting Incorporated ±		3.75			10-1-2020		141,288		141,292
									5,059,893

Multiline Retail : 0.03%
Doosan Infracore International Incorporated ±		4.50			5-28-2021		178,369		179,038

Specialty Retail : 0.44%
Focus Brands Incorporated ±		4.25			2-21-2018		648,609		647,961
Focus Brands Incorporated ±		10.25			8-21-2018		2,023,863		2,006,154
									2,654,115

Consumer Staples : 0.22%
Food Products : 0.15%
B&G Foods Incorporated ±		3.75			11-2-2022		640,110		643,112
Pinnacle Foods Incorporated ±		3.24			1-13-2023		248,750		249,372
									892,484

Tobacco : 0.07%
Reynolds Group Holdings Incorporated ±%%<		3.25			2-1-2023		450,000		450,243

Energy : 0.48%
Energy Equipment & Services : 0.48%
Hummel Station LLC ±		7.00			10-27-2022		3,025,000		2,858,625

Financials : 1.74%
Capital Markets : 0.12%
La Quinta Intermediate Holdings LLC ±		3.75			4-14-2021		746,231		739,702

Consumer Finance : 0.03%
KAR Auction Services Incorporated ±		4.25			3-9-2023		199,500		201,080

Diversified Financial Services : 0.68%
American Beacon Advisors Incorporated ±		5.50			4-30-2022		2,330,189		2,306,887
American Beacon Advisors Incorporated ±(i)		9.75			3-3-2023		440,000		418,000
Ipreo Holdings LLC ±		4.25			8-6-2021		142,473		135,974
LPL Holdings Incorporated ±		4.75			11-20-2022		1,193,802		1,196,786
									4,057,647

Insurance : 0.19%
Hub International Limited ±		4.00			10-2-2020		271,359		270,534
Solera Holdings Incorporated ±		5.75			3-3-2023		872,813		879,359
									1,149,893

Real Estate Management & Development : 0.69%
Capital Automotive LP ±		4.00			4-10-2019		2,220,601		2,226,618
Capital Automotive LP ±		6.00			4-30-2020		1,849,333		1,855,344
									4,081,962


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


Security name	Interest rate			Maturity date		Principal		Value
REITs : 0.03%
MGM Growth Properties LLC ±		4.00	%		4-25-2023	$	149,625	$	150,623

Health Care : 1.75%
Health Care Equipment & Supplies : 0.37%
DJO Finance LLC ±		4.25			6-8-2020		564,300		549,137
Kinetic Concepts Incorporated ±		5.00			11-4-2020		1,362,510		1,363,641
Prestige Brands Incorporated ±		3.50			9-3-2021		266,281		267,447
									2,180,225

Health Care Providers & Services : 0.82%
Acadia Healthcare Company Incorporated ±		3.75			2-11-2022		157,600		157,403
Acadia Healthcare Company Incorporated ±		4.50			2-16-2023		945,250		947,613
Community Health Systems Incorporated ±		4.00			1-27-2021		942,857		930,779
MPH Acquisition Holdings LLC ±		5.00			6-7-2023		550,000		555,500
Surgery Center Holdings Incorporated ±		5.25			11-3-2020		1,108,125		1,112,280
Team Health Incorporated ±		3.75			11-23-2022		522,378		523,684
Vizient Incorporated ±		6.25			2-13-2023		648,375		655,669
									4,882,928

Health Care Technology : 0.19%
Alere Incorporated ±		4.50			6-18-2022		101,487		99,816
Emdeon Incorporated ±		3.75			11-2-2018		989,770		991,631
Hill-Rom Holdings Incorporated ±		3.50			9-8-2022		66,000		66,275
									1,157,722

Pharmaceuticals : 0.37%
Endo Finance LLC ±		3.75			9-26-2022		298,500		295,142
Valeant Pharmaceuticals International Incorporated ±		4.75			12-11-2019		1,501,027		1,483,390
Valeant Pharmaceuticals International Incorporated ±		5.00			4-1-2022		428,774		425,516
									2,204,048

Industrials : 1.60%
Aerospace & Defense : 0.50%
TransDigm Incorporated ±		3.75			2-28-2020		3,003,392		2,995,523

Commercial Services & Supplies : 0.75%
ADS Waste Holdings Incorporated ±		3.75			10-9-2019		1,016,091		1,014,607
Gates Global Limited ±		4.25			7-6-2021		847,272		828,421
Sedgwick Claims Management Services Incorporated ±		3.75			3-1-2021		526,914		517,256
W3 Company ±(i)		9.25			9-13-2020		289,275		115,710
WASH Multifamily Laundry Systems LLC ±		4.25			5-14-2022		1,086,772		1,077,947
WASH Multifamily Laundry Systems LLC ±		4.25			5-14-2022		190,326		188,780
WASH Multifamily Laundry Systems LLC ±		8.00			5-12-2023		17,885		17,572
WASH Multifamily Laundry Systems LLC ±(i)		8.00			5-14-2023		102,115		100,328
Waste Industries USA Incorporated ±%%<		3.50			2-27-2020		588,563		588,745
									4,449,366

Electrical Equipment : 0.16%
Nusil Technology LLC ±		6.00			4-5-2019		974,467		972,031

Machinery : 0.11%
Onex Wizard Acquisition Company ±		4.25			3-13-2022		632,746		633,303

Transportation Infrastructure : 0.08%
OSG Bulk Ships Incorporated ±		5.25			8-5-2019		74,161		73,141


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


Security name	Interest rate			Maturity date		Principal		Value
Transportation Infrastructure (continued)
OSG International Incorporated ±		5.75	%		8-5-2019	$	390,725	$	387,794
									460,935

Information Technology : 2.92%
Internet Software & Services : 0.45%
Black Knight InfoServ LLC ±		3.75			5-27-2022		495,622		498,720
CCC Information Services Incorporated ±		4.00			12-20-2019		579,967		578,761
Infor US Incorporated ±		3.75			6-3-2020		686,761		678,176
Sophia Holding Finance LP ±		4.75			9-30-2022		150,696		150,632
Vertafore Incorporated ±		4.75			6-30-2023		450,000		450,644
Zayo Group LLC ±		3.75			5-6-2021		356,913		356,659
									2,713,592

Semiconductors & Semiconductor Equipment : 0.26%
Avago Technologies ±		4.25			2-1-2023		934,936		934,786
Micron Technology Incorporated ±		6.64			4-26-2022		350,000		353,413
NXP Semiconductors NV ±		3.75			12-7-2020		239,940		241,440
									1,529,639

Software : 0.11%
SS&C Technologies Incorporated ±		4.00			7-8-2022		73,145		73,511
SS&C Technologies Incorporated ±		4.00			7-8-2022		564,555		567,378
									640,889

Technology Hardware, Storage & Peripherals : 2.10%
CDW LLC ±		3.25			4-29-2020		871,001		872,577
Dell Incorporated ±%%<		3.25			5-24-2023		2,500,000		2,500,575
Dell Incorporated ±		4.00			4-29-2020		8,212,813		8,214,537
Kronos Incorporated ±		4.50			10-30-2019		569,266		570,689
Peak 10 Incorporated ±(i)		8.25			6-17-2022		430,000		382,700
									12,541,078

Materials : 0.03%
Containers & Packaging : 0.03%
Owens-Illinois Incorporated ±		3.50			9-1-2022		167,875		168,085

Telecommunication Services : 1.37%
Diversified Telecommunication Services : 0.74%
Avaya Incorporated ±		5.24			10-26-2017		199,261		162,597
Level 3 Financing Incorporated ±		4.00			1-15-2020		1,700,000		1,706,800
Telesat Canada ±		3.50			3-28-2019		2,544,646		2,537,496
									4,406,893

Wireless Telecommunication Services : 0.63%
LTS Buyer LLC ±		4.00			4-13-2020		1,848,369		1,846,058
LTS Buyer LLC ±(i)		8.00			4-12-2021		566,625		565,208
Syniverse Holdings Incorporated ±		4.00			4-23-2019		937,955		755,053
Syniverse Holdings Incorporated ±		4.00			4-23-2019		165,800		134,298
T-Mobile USA Incorporated ±		3.50			11-9-2022		447,750		450,231
									3,750,848


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


Security name	Interest rate			Maturity date		Principal		Value
Utilities : 1.32%
Electric Utilities : 1.32%
Green Energy Partners ±(i)		6.50	%		11-13-2021	$	1,330,000	$	1,263,500
Texas Competitive Electric Holdings LLC ±(s)		4.66			10-10-2016		20,096,983		6,606,883
									7,870,383

Total Loans (Cost $99,904,340)									86,088,221

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		269,768

Total Municipal Obligations (Cost $270,000)									269,768

Non-Agency Mortgage-Backed Securities : 5.72%
Argent Securities Incorporated Series 2004-W5 Class AV3B ±		1.35			4-25-2034		67,233		61,765
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18			3-25-2033		221,284		220,792
Asset-Backed Securities Corporation Home Equity Series 2002-HE3 Class M2 ±		2.77			10-15-2032		102,070		101,867
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±		6.15			7-10-2044		1,340,000		1,005,000
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48			1-15-2049		530,000		527,523
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±		6.48			2-10-2051		550,000		581,265
Banc of America Commercial Mortgage Trust Series 2006-5 Class AM		5.45			9-10-2047		750,000		752,017
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50			9-25-2035		340,462		352,694
Banc of America Funding Corporation Series 2009 Class R6- 3A1 144A±		2.22			1-26-2037		39,138		39,083
Banc of America Mortgage Securities Series 2003 Class 1A1 ±		3.06			4-25-2033		341,396		318,562
Banc of America Mortgage Securities Series 2003 Class A-3A1 ±		2.87			2-25-2033		56,939		55,068
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±		5.92			6-11-2050		318,000		330,003
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±		6.08			6-11-2050		100,000		104,096
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AMA ±		6.09			6-11-2050		715,000		744,126
Centex Home Equity Series 2002-A Class AF6		5.54			1-25-2032		69,617		69,442
Centex Home Equity Series 2002-D Class AF6 ±		4.66			12-25-2032		24,537		24,759
Centex Home Equity Series 2004-B Class AF6		4.69			3-25-2034		196,316		199,636
CFCRE Commercial Mortgage Trust Series 2015-RUM Class A 144A±		2.14			7-15-2030		480,000		478,861
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±		5.04			9-10-2045		1,000,000		1,094,332
Citigroup Commercial Mortgage Trust Series 2015 Class A 144A±		1.59			9-15-2027		595,000		590,496
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±		0.83			12-25-2033		49,342		47,726
Commercial Mortgage Trust Series 2007-C9 144A±		1.09			12-10-2049		940,000		922,457
Commercial Mortgage Trust Series 2012-CR2 Class C ±		5.02			8-15-2045		1,000,000		1,092,229
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.42			2-25-2034		97,099		97,416
Countrywide Home Loans Series 2003-48 Class 2A2 ±		2.82			10-25-2033		101,207		98,760
Credit Suisse Commercial Mortgage Trust Series 2006-C4 Class AM		5.51			9-15-2039		417,138		416,773
Credit Suisse Commercial Mortgage Trust Series 2006-C5 Class AM		5.34			12-15-2039		1,000,000		1,006,296
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±		2.36			9-25-2032		570,985		529,368
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		3.13			6-25-2033		160,336		158,873
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±		2.64			3-25-2033		37,683		36,496
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±		1.11			4-25-2036		108,964		108,640
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62			7-25-2034		423,501		426,736
First Horizon Mortgage Pass Through Series 2004-AR1 Class 1A1 ±		2.77			2-25-2034		416,730		410,593
First Horizon Mortgage Pass Through Series 2004-AR4 Class 3A1 ±		2.82			8-25-2034		8,975		8,755
Global Mortgage Securitization Limited Series 2004-A Class A2 144A±		0.77			11-25-2032		172,155		161,324


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


Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5		6.10	%		7-25-2034	$	66,064	$	68,187
Great Wolf Trust Series 2015 Class A 144A±		1.89			5-15-2034		1,015,000		1,009,956
Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4		5.74			12-10-2049		375,218		388,424
GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±		5.99			8-10-2045		871,865		890,302
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±		1.45			8-10-2043		5,390,855		254,696
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±		2.47			5-10-2045		4,517,135		356,856
GS Mortgage Securities Trust Series 2014-GSFLC Class C 144A±		2.69			7-15-2031		1,000,000		974,575
GS Mortgage Securities Trust Series 2014 Class C 144A		3.79			1-10-2031		1,000,000		1,017,518
GS Mortgage Securities Trust Series 2016-ICE2 Class A 144A±		2.37			2-15-2033		500,000		504,868
GSAA Home Equity Trust Series 2004-5 Class AF5 ±		4.68			6-25-2034		9,100		9,104
GSCCRE Commercial Mortgage Trust Series 2015-HULA Class C 144A±		3.19			8-15-2032		1,000,000		991,954
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		1.10			4-25-2035		9,632		9,552
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 144A±		0.75			3-25-2035		122,964		120,960
GSMPS Mortgage Loan Trust Series 2006-SEA1 Class A 144A±		0.75			5-25-2036		50,828		50,617
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2007-CB18 Class AMFL ±		0.61			6-12-2047		750,000		729,854
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-INN Class A 144A±		1.40			6-15-2029		521,000		517,084
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-FL7 Class A 144A±		1.69			5-15-2028		364,108		362,432
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±		5.47			6-12-2047		875,000		879,966
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±		5.46			1-15-2049		550,000		532,167
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		3.00			7-25-2034		71,564		69,364
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		2.68			7-25-2034		71,776		69,643
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		2.82			6-25-2035		244,982		247,959
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±		6.00			2-27-2037		29,826		30,300
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±		6.00			2-27-2037		104,479		104,907
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±		2.74			12-25-2033		435,247		429,312
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±		2.81			1-25-2034		18,218		17,700
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±		2.92			11-21-2034		24,316		24,792
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50			1-25-2020		36,767		37,717
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM		5.20			12-12-2049		340,000		342,442
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70			9-12-2049		785,179		813,420
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±		5.25			8-25-2036		69,458		70,785
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±		6.02			6-12-2050		608,264		620,901
Mesa Trust Asset Backed Certificates Series 2001-5 Class A 144A±		1.25			12-25-2031		16,394		15,209
Mid State Trust Series 11 Class A1		4.86			7-15-2038		229,578		244,333
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		1.64			1-25-2029		104,938		98,341
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±		1.73			8-15-2045		5,336,813		323,239
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		1.50			12-27-2033		504,268		488,104
Morgan Stanley Capital I Trust Series 2006-HQ10 Class AM		5.36			11-12-2041		500,000		501,702
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AJ ±		5.79			7-12-2044		150,104		150,035
Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM		5.37			12-15-2043		500,000		502,242
Morgan Stanley Capital I Trust Series 2007-HQ13 Class A3		5.57			12-15-2044		1,221,426		1,258,808
Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B 144A±		5.99			8-15-2045		615,000		625,236
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±		5.70			3-15-2045		900,000		998,512
New Century Home Equity Loan Trust Series 2004-3 Class M1 ±		1.38			11-25-2034		1,165,049		1,044,717
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ ±		1.03			3-25-2035		62,015		61,908
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		2.84			5-25-2035		38,200		36,781
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±		3.24			12-26-2035		21,757		21,759
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88			2-25-2035		366,290		367,321
Residential Funding Mortgage Securities Trust Series 03-S12 Class 2A1		4.00			12-25-2032		58,483		58,546
Saxon Asset Securities Trust Series 2002-1 Class AF5		6.76			12-25-2030		151,972		154,823
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03			6-25-2033		525,322		531,295
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		1.21			4-20-2033		19,379		18,187


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


Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±		2.84	%		3-25-2034	$	63,514	$	62,370
Structured Asset Securities Corporation Series 1998-2 Class A ±		0.97			2-25-2028		246,438		238,597
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		1.05			10-25-2027		69,953		68,133
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		1.59			11-25-2033		173,407		164,427
Vendee Mortgage Trust Series 2003-2 Class IO ±(c)		0.75			5-15-2033		5,342,028		163,306
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50			7-25-2034		169,449		180,993
Total Non-Agency Mortgage-Backed Securities (Cost $34,246,379)									34,101,067

Yankee Corporate Bonds and Notes : 8.31%
Consumer Discretionary : 0.49%
Media : 0.49%
Grupo Televisa SAB		6.00			5-15-2018		750,000		809,485
Myriad International Holdings BV		6.00			7-18-2020		500,000		549,350
Myriad International Holdings BV 144A		6.38			7-28-2017		750,000		777,750
WPP Finance 2010		3.63			9-7-2022		750,000		797,249
									2,933,834

Consumer Staples : 0.34%
Beverages : 0.14%
Pernod Ricard SA 144A		4.45			1-15-2022		760,000		840,562

Food Products : 0.07%
Fage International SA 144A%%		5.63			8-15-2026		400,000		408,500

Tobacco : 0.13%
BAT International Finance plc 144A		3.25			6-7-2022		750,000		800,496

Energy : 1.45%
Oil, Gas & Consumable Fuels : 1.45%
Baytex Energy Corporation 144A		5.13			6-1-2021		689,000		558,090
Baytex Energy Corporation 144A		5.63			6-1-2024		1,000,000		790,000
Griffin Coal Mining Company Limited 144A(a)(i)(s)		9.50			12-1-2016		1,685,411		674,164
Griffin Coal Mining Company Limited (a)(i)(s)		9.50			12-1-2016		137,792		55,117
Petrobras International Finance Company		5.38			1-27-2021		670,000		635,663
Petroleos Mexicanos		4.88			1-24-2022		750,000		770,625
Teekay Corporation		8.50			1-15-2020		4,475,000		3,848,500
Teekay Corporation 144A		8.50			1-15-2020		1,000,000		840,000
Woodside Finance Limited 144A		8.75			3-1-2019		405,000		470,017
									8,642,176

Financials : 0.98%
Banks : 0.78%
ABN AMRO Bank NV 144A		4.80			4-18-2026		750,000		793,913
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		695,922
Corporación Andina de Fomento		4.38			6-15-2022		958,000		1,068,055
Export Import Bank of Korea		5.00			4-11-2022		750,000		870,920
Macquarie Bank Limited 144A		5.00			2-22-2017		750,000		764,695
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		415,000		431,600
Preferred Term Securities XII Limited (a)(i)(s)		0.00			12-24-2033		635,000		0
									4,625,105

Diversified Financial Services : 0.20%
GE Capital International Funding Company		2.34			11-15-2020		527,000		546,662


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


Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services (continued)
Tyco Electronics Group SA		3.50	%		2-3-2022	$	625,000	$	661,104
									1,207,766

Health Care : 1.71%
Pharmaceuticals : 1.71%
Mallinckrodt plc 144A		5.50			4-15-2025		500,000		461,250
Mallinckrodt plc 144A		5.63			10-15-2023		275,000		264,000
Perrigo Finance plc		3.90			12-15-2024		1,000,000		1,037,022
Valeant Pharmaceuticals International Incorporated 144A		5.63			12-1-2021		700,000		597,625
Valeant Pharmaceuticals International Incorporated 144A		5.88			5-15-2023		2,220,000		1,848,150
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		4,800,000		3,984,000
Valeant Pharmaceuticals International Incorporated 144A		6.38			10-15-2020		1,425,000		1,286,063
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		785,000		730,050
									10,208,160

Industrials : 0.64%
Building Products : 0.04%
Allegion plc		5.88			9-15-2023		210,000		223,650

Commercial Services & Supplies : 0.42%
GFL Environmental Incorporated 144A		7.88			4-1-2020		1,900,000		1,961,750
GFL Environmental Incorporated 144A		9.88			2-1-2021		500,000		542,500
									2,504,250

Machinery : 0.04%
Sensata Technologies BV 144A		5.00			10-1-2025		235,000		240,875

Road & Rail : 0.14%
Canadian Pacific Railway Company		4.50			1-15-2022		750,000		827,774

Information Technology : 0.26%
Communications Equipment : 0.13%
Ericsson LM		4.13			5-15-2022		750,000		812,906

Internet Software & Services : 0.13%
Tencent Holdings Limited 144A		4.63			12-12-2016		750,000		758,993

Materials : 0.70%
Containers & Packaging : 0.40%
Ardagh Finance Holdings SA (PIK at 8.63%) 144A¥		8.63			6-15-2019		1,587,602		1,635,230
Ardagh Packaging Finance plc 144A		7.25			5-15-2024		725,000		764,875
									2,400,105

Metals & Mining : 0.30%
ArcelorMittal SA		6.13			6-1-2025		275,000		291,415
Glencore Finance Canada Limited 144A		4.25			10-25-2022		750,000		736,287
Vale Overseas Limited		4.38			1-11-2022		750,000		728,438
									1,756,140


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


Security name	Interest rate					Maturity date		Principal		Value
Telecommunication Services : 1.62%
Diversified Telecommunication Services : 1.39%
Intelsat Jackson Holdings SA		5.50	%				8-1-2023	$	6,775,000	$	4,437,625
Intelsat Jackson Holdings SA		7.25					4-1-2019		1,675,000		1,252,063
Intelsat Luxembourg SA		7.75					6-1-2021		1,445,000		332,350
Intelsat Luxembourg SA		8.13					6-1-2023		5,815,000		1,351,988
Qtel International Finance Limited		5.00					10-19-2025		300,000		339,750
Virgin Media Finance plc 144A		5.38					4-15-2021		162,000		168,480
Virgin Media Finance plc 144A		6.38					4-15-2023		365,000		375,038
											8,257,294

Wireless Telecommunication Services : 0.23%
Globo Communicacoes Participacoes SA 144A		4.88					4-11-2022		595,000		615,825
Telesat Canada Incorporated 144A		6.00					5-15-2017		775,000		773,063
											1,388,888

Utilities : 0.12%
Electric Utilities : 0.12%
Comision Federal de Electricidad 144A		4.88					5-26-2021		650,000		697,125

Total Yankee Corporate Bonds and Notes (Cost $58,247,283)											49,534,599

				Yield				Shares
Short-Term Investments : 4.65%
Investment Companies : 4.65%
Wells Fargo Government Money Market Fund Select Class (l)(u)##					0.32				27,744,692		27,744,692

Total Short-Term Investments (Cost $27,744,692)											27,744,692

Total investments in securities (Cost $852,772,631)*		136.08	%								811,071,995
Other assets and liabilities, net		(36.08	)								(215,065,353	)

Total net assets		100.00	%							$	596,006,642

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.

The security is issued on a when-issued basis.

(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.

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 — July 31, 2016 (unaudited)


*		Cost for federal income tax purposes is $858,231,457 and unrealized gains (losses) consists of:


Gross unrealized gains	$	27,328,822
Gross unrealized losses		(74,488,284	)

Net unrealized losses	$	(47,159,462	)

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
PLN		Polish zloty
REIT		Real estate investment trust
THB		Thai baht
TRY		Turkish lira
ZAR		South African rand

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

Notes to Portfolio of investments – July 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), 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 July 31, 2016, the Fund had unfunded loan commitments of $3,413,469.

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 July 31, 2016:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	14,455,611	$	0		14,455,611
Asset-backed securities		0		618,652		0		618,652
Common stocks
Energy		446,988		0		0		446,988
Materials		677		0		0		677
Corporate bonds and notes		0		439,653,143		0		439,653,143
Foreign corporate bonds and notes		0		15,135,228		0		15,135,228
Foreign government bonds		0		143,023,349		0		143,023,349
Loans		0		73,150,199		12,938,022		86,088,221
Municipal obligations		0		269,768		0		269,768
Non-agency mortgage-backed securities		0		34,101,067		0		34,101,067
Yankee corporate bonds and notes		0		48,805,318		729,281		49,534,599
Short-term investments
Investment companies		27,744,692		0		0		27,744,692

Total assets	$	28,192,357	$	769,212,335	$	13,667,303	$	811,071,995

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At July 31, 2016, 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, 2015	$	16,654,991		$	729,281		$	17,384,272
Accrued discounts (premiums)		27,542			146,998			174,540
Realized gains (losses)		122,113			0			122,113
Change in unrealized gains (losses)		(194,890	)		(146,998	)		(341,888	)
Purchases		1,966,301			0			1,966,301
Sales		(7,450,342	)		0			(7,450,342	)
Transfers into Level 3		3,818,461			0			3,818,461
Transfers out of Level 3		(2,006,154	)		0			(2,006,154	)

Balance as of July 31, 2016	$	12,938,022		$	729,281		$	13,667,303

Change in unrealized gains (losses) relating to securities still held at July 31, 2016	$	(107,408	)	$	(146,998	)	$	(254,406	)

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.

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: September 23, 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: September 23, 2016

By:		/s/ Jeremy DePalma

		Jeremy DePalma
		Treasurer

Date: September 23, 2016