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, 2018

ITEM 1. INVESTMENTS


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Agency Securities : 1.64%
FHLMC (5 Year Treasury Constant Maturity +2.06%) ±		3.55	%	9-1-2032	$	951,661	$	984,924
FHLMC		8.50		7-1-2028		37,591		42,861
FHLMC Series 1383 (1 Year Treasury Constant Maturity +2.25%) ±		3.00		2-1-2037		227,105		238,839
FHLMC Series 196 Class A (1 Month LIBOR +0.80%) ±		2.28		12-15-2021		9,344		9,408
FHLMC Series 2011-K16 Class B 144A±±		4.60		11-25-2046		1,000,000		1,047,242
FHLMC Series 2012-K17 Class B 144A±±		4.34		12-25-2044		675,000		700,775
FHLMC Series 2012-K18 Class B 144A±±		4.26		1-25-2045		810,000		838,569
FHLMC Series 2012-K706 Class B 144A±±		4.03		11-25-2044		500,000		503,458
FHLMC Series 2012-K706 Class C 144A±±		4.03		11-25-2044		805,000		809,172
FHLMC Series 2012-K707 Class B 144A±±		3.88		1-25-2047		930,000		937,185
FHLMC Series 2012-K711 Class B 144A±±		3.56		8-25-2045		264,000		266,146
FHLMC Series 2013-K30 Class B 144A±±		3.56		6-25-2045		700,000		702,178
FHLMC Series 2390 Class FD (1 Month LIBOR +0.45%) ±		1.93		12-15-2031		18,905		18,975
FHLMC Series 2567 Class FH (1 Month LIBOR +0.40%) ±		1.96		2-15-2033		57,663		57,699
FHLMC Series K007 Class X1 ±±(c)		1.22		4-25-2020		773,906		14,639
FHLMC Series K016 Class X1 ±±(c)		1.52		10-25-2021		364,002		16,899
FHLMC Series K020 Class X1 ±±(c)		1.42		5-25-2022		6,437,947		321,508
FNMA (6 Month LIBOR +1.64%) ±		3.11		9-1-2037		61,394		63,403
FNMA		6.00		4-1-2033		60,842		62,656
FNMA		7.50		2-1-2030		24,233		24,394
FNMA		7.50		9-1-2030		31,266		31,594
FNMA Series 1996-46 Class FA (1 Month LIBOR +0.50%) ±		2.06		8-25-2021		4,873		4,877
FNMA Series 1997-20 Class IO ±±(c)		1.84		3-25-2027		588,414		14,901
FNMA Series 2001-25 Class Z		6.00		6-25-2031		99,227		107,432
FNMA Series 2001-35 Class F (1 Month LIBOR +0.60%) ±		2.16		7-25-2031		4,789		4,863
FNMA Series 2001-57 Class F (1 Month LIBOR +0.50%) ±		2.06		6-25-2031		4,821		4,848
FNMA Series 2002-77 Class FH (1 Month LIBOR +0.40%) ±		1.96		12-18-2032		34,711		34,733
FNMA Series 2002-97 Class FR (1 Month LIBOR +0.55%) ±		2.11		1-25-2033		8,056		8,162
FNMA Series G91-16 Class F (1 Month LIBOR +0.45%) ±		2.01		6-25-2021		5,913		5,939
FNMA Series G92-17 Class F (1 Month LIBOR +1.05%) ±		2.61		3-25-2022		26,302		26,631
GNMA		6.50		6-15-2028		25,273		27,964
GNMA		7.25		5-15-2018		149		149

Total Agency Securities (Cost $7,634,453)								7,933,023

Asset-Backed Securities : 0.59%
CVS Pass-Through Trust Series T		6.04		12-10-2028		489,818		539,902
Five Guys Funding LLC Series 17-1A Class A2 144A		4.60		7-25-2047		997,500		1,017,802
MMAF Equipment Finance LLC Series 2017-AA Class A4 144A		2.41		8-16-2024		170,000		167,047
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2 (1 Month LIBOR +1.00%) ±		2.56		5-20-2030		579,502		586,036
Navient SLM Student Loan Series 2005-B Class A3 (3 Month LIBOR +0.27%) ±		1.59		12-15-2023		55,209		55,220
Student Loan Consolidation Center Series 2011-1 Class A (1 Month LIBOR +1.22%) 144A±		2.78		10-25-2027		507,985		514,012

Total Asset-Backed Securities (Cost $2,889,294)								2,880,019


					Shares
Common Stocks : 0.00%

Materials : 0.00%

Chemicals : 0.00%
LyondellBasell Industries NV Class A						9		1,079

Total Common Stocks (Cost $779)								1,079


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Corporate Bonds and Notes : 72.82%

Consumer Discretionary : 13.56%

Auto Components : 1.24%
Allison Transmission Incorporated 144A		4.75	%	10-1-2027	$	650,000	$	646,750
Allison Transmission Incorporated 144A		5.00		10-1-2024		2,250,000		2,272,500
Cooper Tire & Rubber Company		7.63		3-15-2027		1,710,000		1,928,025
Cooper Tire & Rubber Company		8.00		12-15-2019		600,000		651,000
Goodyear Tire & Rubber Company		8.75		8-15-2020		468,000		530,384

								6,028,659

Distributors : 0.22%
LKQ Corporation		4.75		5-15-2023		900,000		921,375
Spectrum Brands Incorporated		6.63		11-15-2022		125,000		129,531

								1,050,906

Diversified Consumer Services : 1.17%
Service Corporation International		4.63		12-15-2027		650,000		644,313
Service Corporation International		7.50		4-1-2027		3,400,000		4,046,000
Service Corporation International		8.00		11-15-2021		850,000		988,125

								5,678,438

Hotels, Restaurants & Leisure : 0.82%
CCM Merger Incorporated 144A		6.00		3-15-2022		3,531,000		3,619,275
Pinnacle Entertainment Incorporated		5.63		5-1-2024		325,000		347,750

								3,967,025

Internet & Direct Marketing Retail : 0.17%
Expedia Incorporated		5.95		8-15-2020		750,000		804,638

Media : 7.85%
Altice US Finance I Corporation 144A		5.38		7-15-2023		1,395,000		1,428,131
Altice US Finance I Corporation 144A		5.50		5-15-2026		1,275,000		1,303,688
CCO Holdings LLC 144A		4.00		3-1-2023		100,000		98,219
CCO Holdings LLC 144A		5.00		2-1-2028		150,000		145,125
CCO Holdings LLC		5.13		2-15-2023		100,000		101,938
CCO Holdings LLC 144A		5.13		5-1-2027		450,000		438,309
CCO Holdings LLC		5.25		9-30-2022		1,250,000		1,279,688
CCO Holdings LLC 144A		5.38		5-1-2025		4,150,000		4,212,250
CCO Holdings LLC 144A		5.50		5-1-2026		215,000		219,300
CCO Holdings LLC		5.75		9-1-2023		150,000		157,219
CCO Holdings LLC 144A		5.75		2-15-2026		3,375,000		3,493,125
CCO Holdings LLC 144A		5.88		4-1-2024		1,250,000		1,306,250
Cequel Communications Holdings I LLC 144A		7.75		7-15-2025		2,030,000		2,207,625
Cinemark USA Incorporated		4.88		6-1-2023		375,000		379,688
CSC Holdings LLC 144A		5.38		2-1-2028		425,000		423,938
CSC Holdings LLC		7.88		2-15-2018		1,000,000		1,000,000
CSC Holdings LLC		8.63		2-15-2019		383,000		404,065
E.W. Scripps Company 144A		5.13		5-15-2025		2,460,000		2,429,250
EMI Music Publishing Group 144A		7.63		6-15-2024		1,425,000		1,567,500
Gray Television Incorporated 144A		5.13		10-15-2024		450,000		452,250
Gray Television Incorporated 144A		5.88		7-15-2026		3,875,000		3,991,250
Interpublic Group of Companies		4.00		3-15-2022		750,000		770,408
Lamar Media Corporation		5.38		1-15-2024		375,000		386,250
Lamar Media Corporation		5.88		2-1-2022		690,000		705,525
Live Nation Entertainment Incorporated 144A		4.88		11-1-2024		1,400,000		1,428,000
National CineMedia LLC		6.00		4-15-2022		1,950,000		1,976,813
Nexstar Broadcasting Group Incorporated 144A		5.63		8-1-2024		850,000		878,152
Nexstar Broadcasting Group Incorporated 144A		6.13		2-15-2022		950,000		978,500
Nielsen Finance LLC 144A		5.00		4-15-2022		75,000		76,219


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Media (continued)
Outfront Media Capital Corporation		5.63	%	2-15-2024	$	20,000	$	20,475
Outfront Media Capital Corporation		5.88		3-15-2025		775,000		806,512
Salem Media Group Incorporated 144A		6.75		6-1-2024		2,200,000		2,150,500
Time Warner Cable Incorporated		4.00		1-15-2022		750,000		775,577

								37,991,739

Multiline Retail : 0.12%
Macy’s Retail Holdings Incorporated		3.88		1-15-2022		600,000		603,516

Specialty Retail : 1.72%
Advance Auto Parts Incorporated		4.50		1-15-2022		600,000		626,751
Asbury Automotive Group Incorporated		6.00		12-15-2024		1,175,000		1,222,000
Lithia Motors Incorporated 144A		5.25		8-1-2025		945,000		973,350
Penske Auto Group Incorporated		3.75		8-15-2020		540,000		542,700
Penske Auto Group Incorporated		5.38		12-1-2024		2,150,000		2,171,500
Penske Auto Group Incorporated		5.75		10-1-2022		1,155,000		1,189,304
Sonic Automotive Incorporated		5.00		5-15-2023		849,000		825,653
Sonic Automotive Incorporated		6.13		3-15-2027		775,000		769,188

								8,320,446

Textiles, Apparel & Luxury Goods : 0.25%
The William Carter Company		5.25		8-15-2021		600,000		612,000
Wolverine World Wide Company 144A		5.00		9-1-2026		600,000		606,000

								1,218,000

Consumer Staples : 1.28%

Beverages : 0.27%
Anheuser-Busch InBev Finance Incorporated		3.75		1-15-2022		600,000		618,907
Cott Beverages Incorporated 144A		5.50		4-1-2025		675,000		687,656

								1,306,563

Food Products : 0.82%
B&G Foods Incorporated		4.63		6-1-2021		300,000		301,500
B&G Foods Incorporated		5.25		4-1-2025		1,050,000		1,051,313
Darling Ingredients Incorporated		5.38		1-15-2022		180,000		184,275
Kraft Foods Group Incorporated		3.50		6-6-2022		750,000		758,325
Pilgrim’s Pride Corporation 144A		5.75		3-15-2025		1,305,000		1,318,050
Pilgrim’s Pride Corporation 144A		5.88		9-30-2027		150,000		150,375
Pinnacle Foods Incorporated		5.88		1-15-2024		75,000		79,411
Prestige Brands Incorporated 144A		6.38		3-1-2024		130,000		133,900

								3,977,149

Household Products : 0.05%
Central Garden & Pet Company		5.13		2-1-2028		225,000		223,875

Tobacco : 0.14%
Reynolds American Incorporated		6.88		5-1-2020		650,000		707,818

Energy : 20.39%

Energy Equipment & Services : 5.68%
Bristow Group Incorporated		6.25		10-15-2022		3,430,000		2,898,350
Diamond Offshore Drilling Incorporated		4.88		11-1-2043		1,325,000		1,013,625
Era Group Incorporated		7.75		12-15-2022		2,350,000		2,279,500
Hilcorp Energy Company 144A		5.00		12-1-2024		1,450,000		1,457,250
Hilcorp Energy Company 144A		5.75		10-1-2025		1,525,000		1,570,750


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Energy Equipment & Services (continued)
Hornbeck Offshore Services Incorporated		1.50	%	9-1-2019	$	4,750,000	$	3,561,593
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		150,000		87,375
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		1,860,000		1,311,300
NGPL PipeCo LLC 144A		4.38		8-15-2022		350,000		353,605
NGPL PipeCo LLC 144A		4.88		8-15-2027		550,000		565,125
NGPL PipeCo LLC 144A		7.77		12-15-2037		6,435,000		8,027,663
PHI Incorporated		5.25		3-15-2019		4,425,000		4,391,813

								27,517,949

Oil, Gas & Consumable Fuels : 14.71%
Carrizo Oil & Gas Incorporated		8.25		7-15-2025		800,000		882,000
Cheniere Energy Incorporated 144A		5.25		10-1-2025		3,725,000		3,794,844
Continental Resources Incorporated		3.80		6-1-2024		700,000		686,000
Continental Resources Incorporated 144A		4.38		1-15-2028		250,000		249,100
Continental Resources Incorporated		5.00		9-15-2022		875,000		885,938
DCP Midstream Operating LP		2.70		4-1-2019		725,000		722,281
Denbury Resources Incorporated		5.00		12-15-2023		561,000		474,113
Denbury Resources Incorporated		6.38		8-15-2021		3,209,000		2,711,605
Denbury Resources Incorporated 144A		9.25		3-31-2022		676,000		692,900
El Paso LLC		6.50		4-1-2020		750,000		806,153
Enable Midstream Partner LP		2.40		5-15-2019		2,350,000		2,332,505
Enable Midstream Partner LP		3.90		5-15-2024		1,750,000		1,745,105
Enable Oklahoma Intrastate Transmission LLC 144A		6.25		3-15-2020		250,000		264,555
Energy Transfer Partners LP		5.20		2-1-2022		750,000		798,027
EnLink Midstream LLC		4.15		6-1-2025		2,350,000		2,354,208
EnLink Midstream LLC		4.40		4-1-2024		3,200,000		3,267,399
Exterran Partners LP		6.00		4-1-2021		3,100,000		3,138,750
Gulfport Energy Corporation		6.63		5-1-2023		1,900,000		1,957,000
Kinder Morgan Energy Partners LP		3.95		9-1-2022		750,000		768,402
Kinder Morgan Incorporated		6.50		9-15-2020		285,000		309,443
Kinder Morgan Incorporated		7.42		2-15-2037		800,000		967,337
Matador Resources Company		6.88		4-15-2023		300,000		315,750
Murphy Oil Corporation		4.45		12-1-2022		1,250,000		1,254,688
Murphy Oil Corporation		5.75		8-15-2025		185,000		189,625
Murphy Oil Corporation		6.88		8-15-2024		850,000		907,936
Nabors Industries Limited		0.75		1-15-2024		1,425,000		1,145,415
Nabors Industries Limited		4.63		9-15-2021		750,000		733,125
Overseas Shipholding Group Incorporated		8.13		3-30-2018		2,275,000		2,286,375
Phillips 66		4.30		4-1-2022		625,000		656,666
Pioneer Natural Resources Company		3.95		7-15-2022		750,000		773,269
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		3,500,000		3,675,000
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		3,074,000		3,600,423
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		240,000		286,800
Rose Rock Midstream LP		5.63		7-15-2022		1,300,000		1,313,000
Rose Rock Midstream LP		5.63		11-15-2023		825,000		813,656
Sabine Pass Liquefaction LLC		5.63		2-1-2021		600,000		639,484
Sabine Pass Liquefaction LLC		5.63		4-15-2023		1,710,000		1,863,201
Sabine Pass Liquefaction LLC		5.63		3-1-2025		460,000		502,860
Sabine Pass Liquefaction LLC		5.75		5-15-2024		1,625,000		1,781,384
Sabine Pass Liquefaction LLC		6.25		3-15-2022		3,550,000		3,915,874
SemGroup Corporation 144A		6.38		3-15-2025		3,425,000		3,433,563
SemGroup Corporation 144A		7.25		3-15-2026		1,000,000		1,035,000
Southern Star Central Corporation 144A		5.13		7-15-2022		775,000		798,250
Southwestern Energy Company		4.10		3-15-2022		425,000		418,625
Southwestern Energy Company		7.50		4-1-2026		400,000		418,500
Southwestern Energy Company		7.75		10-1-2027		400,000		415,000
Summit Midstream Holdings LLC		5.75		4-15-2025		225,000		226,688
Tallgrass Energy Partners LP 144A		5.50		9-15-2024		5,100,000		5,227,500
Tesoro Logistics LP		6.38		5-1-2024		450,000		487,688
Ultra Resources Incorporated 144A		6.88		4-15-2022		600,000		600,000
Ultra Resources Incorporated 144A		7.13		4-15-2025		505,000		504,369
Western Gas Partners LP		4.00		7-1-2022		175,000		177,170
Western Gas Partners LP		5.38		6-1-2021		225,000		237,286


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Williams Partners LP		3.35	%		8-15-2022	$	750,000	$	751,012

									71,192,847

Financials : 9.07%

Banks : 1.27%
Bank of America Corporation		5.70			1-24-2022		250,000		275,898
Citigroup Incorporated		4.50			1-14-2022		250,000		263,373
City National Bank		5.38			7-15-2022		500,000		539,321
International Bank for Reconstruction & Development		7.50			6-9-2021		5,000,000		1,553,515
International Finance Corporation		7.50			5-9-2022		9,000,000		2,770,621
JPMorgan Chase & Company		3.38			5-1-2023		750,000		754,495

									6,157,223

Capital Markets : 0.38%
ACE Securities Corporation (1 Month LIBOR +2.63%) ±		4.19			6-25-2033		214,037		213,976
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		750,000		813,259
Goldman Sachs Group Incorporated		5.75			1-24-2022		750,000		822,259

									1,849,494

Consumer Finance : 2.39%
Ally Financial Incorporated		8.00			12-31-2018		780,000		812,175
Ally Financial Incorporated		8.00			3-15-2020		755,000		823,328
Discover Financial Services		5.20			4-27-2022		750,000		797,203
FirstCash Incorporated 144A		5.38			6-1-2024		575,000		602,313
Ford Motor Credit Company LLC		5.00			5-15-2018		650,000		655,319
General Motors Financial Company Incorporated		3.70			5-9-2023		750,000		754,680
Navient Corporation		8.00			3-25-2020		930,000		1,005,284
Navient Corporation		8.45			6-15-2018		1,675,000		1,708,500
OneMain Financial Group LLC 144A		7.25			12-15-2021		3,425,000		3,544,875
Springleaf Finance Corporation		6.00			6-1-2020		825,000		853,875

									11,557,552

Diversified Financial Services : 2.62%
General Electric Capital Corporation		4.65			10-17-2021		187,000		197,581
Infinity Acquisition LLC 144A		7.25			8-1-2022		960,000		962,400
ING US Incorporated		5.50			7-15-2022		750,000		816,613
LPL Holdings Incorporated 144A		5.75			9-15-2025		10,025,000		10,228,572
Vantiv LLC 144A		4.38			11-15-2025		500,000		496,250

									12,701,416

Insurance : 2.41%
American International Group Incorporated		4.88			6-1-2022		750,000		801,979
Endurance Specialty Holdings Limited		7.00			7-15-2034		575,000		721,112
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		700,594
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		1,075,000		1,075,000
Hub International Limited 144A		7.88			10-1-2021		3,950,000		4,108,000
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		798,236
ProAssurance Corporation		5.30			11-15-2023		750,000		800,496
Prudential Financial Incorporated		4.50			9-15-2047		750,000		761,250
USIS Merger Subordinate Incorporated 144A		6.88			5-1-2025		1,175,000		1,210,250
W.R. Berkley Corporation		4.63			3-15-2022		650,000		683,207

									11,660,124


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Health Care : 6.43%

Biotechnology : 0.16%
Amgen Incorporated		3.63	%		5-15-2022	$	750,000	$	769,238

Health Care Equipment & Supplies : 1.46%
Hill-Rom Holdings Incorporated 144A		5.00			2-15-2025		400,000		406,000
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		208,250
Hologic Incorporated 144A		4.38			10-15-2025		1,925,000		1,925,000
Hologic Incorporated 144A		4.63			2-1-2028		225,000		225,000
Hologic Incorporated 144A		5.25			7-15-2022		670,000		695,527
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		1,425,000		1,478,438
Surgery Center Holdings Incorporated 144A		6.75			7-1-2025		500,000		481,875
Surgery Center Holdings Incorporated 144A		8.88			4-15-2021		1,600,000		1,670,000

									7,090,090

Health Care Providers & Services : 4.02%
Acadia Healthcare Company Incorporated		6.50			3-1-2024		190,000		198,550
CHS Incorporated		5.13			8-1-2021		1,175,000		1,095,688
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		804,567
Express Scripts Holding Company		3.90			2-15-2022		665,000		680,622
HCA Incorporated		6.50			2-15-2020		1,400,000		1,492,750
HealthSouth Corporation		5.75			9-15-2025		575,000		594,406
Mednax Incorporated 144A		5.25			12-1-2023		475,000		485,094
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		2,625,000		2,818,594
MPT Operating Partnership LP		5.00			10-15-2027		1,100,000		1,089,220
MPT Operating Partnership LP		5.25			8-1-2026		1,250,000		1,287,500
MPT Operating Partnership LP		6.38			3-1-2024		110,000		117,260
Polaris Intermediate Corporation 144A		8.50			12-1-2022		475,000		494,594
Select Medical Corporation		6.38			6-1-2021		3,050,000		3,118,625
Tenet Healthcare Corporation 144A		4.63			7-15-2024		436,000		428,370
Tenet Healthcare Corporation		6.00			10-1-2020		700,000		733,691
Vizient Incorporated 144A		10.38			3-1-2024		3,550,000		4,002,625

									19,442,156

Health Care Technology : 0.47%
Change Healthcare Holdings Incorporated 144A		5.75			3-1-2025		1,945,000		1,979,038
Quintiles IMS Holdings Incorporated 144A		4.88			5-15-2023		50,000		51,750
Quintiles IMS Holdings Incorporated 144A		5.00			10-15-2026		225,000		229,219

									2,260,007

Life Sciences Tools & Services : 0.17%
Life Technologies Corporation		6.00			3-1-2020		750,000		798,894

Pharmaceuticals : 0.15%
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		746,120

Industrials : 3.80%

Aerospace & Defense : 0.46%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		1,022,239
RBS Global & Rexnord LLC 144A		4.88			12-15-2025		1,200,000		1,215,000

									2,237,239

Airlines : 0.34%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,100,000		1,219,920
Delta Air Lines Incorporated		4.75			11-7-2021		407,587		421,363

									1,641,283


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Commercial Services & Supplies : 2.73%
Advanced Disposal Services Incorporated 144A		5.63	%	11-15-2024	$	1,750,000	$	1,806,875
Aramark Services Incorporated 144A		5.00		2-1-2028		225,000		228,234
Aramark Services Incorporated		5.13		1-15-2024		545,000		562,031
Covanta Holding Corporation		5.88		3-1-2024		1,485,000		1,507,275
Covanta Holding Corporation		5.88		7-1-2025		900,000		915,750
Covanta Holding Corporation		6.38		10-1-2022		1,750,000		1,791,563
KAR Auction Services Incorporated 144A		5.13		6-1-2025		4,950,000		5,018,063
Republic Services Incorporated		3.55		6-1-2022		750,000		763,233
Waste Pro USA Incorporated 144A%%		5.50		2-15-2026		375,000		381,563
Wrangler Buyer Corporation 144A		6.00		10-1-2025		250,000		258,125

								13,232,712

Professional Services : 0.12%
Verisk Analytics Incorporated		5.80		5-1-2021		530,000		574,208

Road & Rail : 0.13%
TTX Company 144A		2.60		6-15-2020		650,000		648,081

Trading Companies & Distributors : 0.02%
International Lease Finance Corporation 144A		7.13		9-1-2018		75,000		76,983

Information Technology : 6.31%

Communications Equipment : 0.34%
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		825,000		868,057
Motorola Solutions Incorporated		3.75		5-15-2022		750,000		760,840

								1,628,897

Electronic Equipment, Instruments & Components : 1.19%
Jabil Circuit Incorporated		8.25		3-15-2018		4,325,000		4,365,223
Keysight Technologies		4.60		4-6-2027		600,000		622,212
L-3 Communications Corporation		4.95		2-15-2021		750,000		789,083

								5,776,518

Internet Software & Services : 0.79%
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13		5-1-2021		550,000		561,000
Infor US Incorporated		6.50		5-15-2022		550,000		567,188
Zayo Group LLC 144A		5.75		1-15-2027		1,150,000		1,168,745
Zayo Group LLC		6.00		4-1-2023		75,000		78,469
Zayo Group LLC		6.38		5-15-2025		1,400,000		1,468,250

								3,843,652

IT Services : 1.26%
Cardtronics Incorporated		5.13		8-1-2022		460,000		445,050
Cardtronics Incorporated 144A		5.50		5-1-2025		940,000		871,850
First Data Corporation 144A		5.00		1-15-2024		1,425,000		1,462,406
First Data Corporation 144A		5.38		8-15-2023		332,000		342,375
First Data Corporation 144A		5.75		1-15-2024		370,000		382,373
First Data Corporation 144A		7.00		12-1-2023		125,000		131,641
Gartner Incorporated 144A		5.13		4-1-2025		2,350,000		2,443,295

								6,078,990

Semiconductors & Semiconductor Equipment : 0.21%
Micron Technology Incorporated 144A		5.25		1-15-2024		700,000		728,000


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Semiconductors & Semiconductor Equipment (continued)
Micron Technology Incorporated		5.50	%	2-1-2025	$	256,000	$	268,480

								996,480

Software : 0.17%
SS&C Technologies Incorporated		5.88		7-15-2023		600,000		629,250
Symantec Corporation 144A		5.00		4-15-2025		200,000		203,966

								833,216

Technology Hardware, Storage & Peripherals : 2.35%
Dell International LLC 144A		5.88		6-15-2021		1,000,000		1,035,630
Diamond 1 Finance Corporation 144A		7.13		6-15-2024		4,525,000		4,943,563
Hewlett-Packard Company		4.05		9-15-2022		750,000		775,631
NCR Corporation		5.88		12-15-2021		5,000		5,131
NCR Corporation		6.38		12-15-2023		4,400,000		4,620,000

								11,379,955

Materials : 1.37%

Chemicals : 0.24%
Dow Chemical Company		4.13		11-15-2021		750,000		780,575
Valvoline Incorporated		5.50		7-15-2024		375,000		394,688

								1,175,263

Containers & Packaging : 1.13%
Ball Corporation		5.25		7-1-2025		190,000		201,163
Berry Plastics Corporation		5.13		7-15-2023		350,000		363,318
Berry Plastics Corporation		6.00		10-15-2022		215,000		224,138
Crown Americas LLC 144A		4.75		2-1-2026		850,000		856,375
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		35,000		40,338
Owens-Brockway Glass Container Incorporated 144A		5.88		8-15-2023		325,000		345,313
Owens-Illinois Incorporated 144A		6.38		8-15-2025		3,093,000		3,417,765

								5,448,410

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

Real Estate : 3.73%

Equity REITs : 3.73%
Alexandria Real Estate Company		4.60		4-1-2022		650,000		682,633
American Tower Corporation		5.90		11-1-2021		650,000		715,883
DDR Corporation		4.70		6-1-2027		600,000		626,113
Equinix Incorporated		5.75		1-1-2025		1,275,000		1,345,125
Equinix Incorporated		5.88		1-15-2026		425,000		451,563
ESH Hospitality Incorporated 144A		5.25		5-1-2025		1,700,000		1,712,750
Essex Portfolio LP		3.63		8-15-2022		750,000		762,579
Iron Mountain Incorporated 144A		5.25		3-15-2028		675,000		656,438
Iron Mountain Incorporated 144A		5.38		6-1-2026		150,000		150,000
Iron Mountain Incorporated		6.00		8-15-2023		2,960,000		3,089,500
MGM Growth Properties LLC 144A		4.50		1-15-2028		400,000		390,250
Omega HealthCare Investors Incorporated		4.50		4-1-2027		600,000		575,416
Sabra Health Care REIT Incorporated		5.38		6-1-2023		900,000		920,250
Sabra Health Care REIT Incorporated		5.50		2-1-2021		1,100,000		1,128,875
The Geo Group Incorporated		5.13		4-1-2023		800,000		806,000
The Geo Group Incorporated		5.88		1-15-2022		1,565,000		1,606,081
The Geo Group Incorporated		5.88		10-15-2024		840,000		863,100
The Geo Group Incorporated		6.00		4-15-2026		184,000		187,680
Ventas Realty LP		4.25		3-1-2022		650,000		674,749


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Equity REITs (continued)
Welltower Incorporated		5.25	%	1-15-2022	$	650,000	$	698,459

								18,043,444

Telecommunication Services : 2.79%

Diversified Telecommunication Services : 1.15%
AT&T Incorporated		3.80		3-15-2022		750,000		768,654
GCI Incorporated		6.75		6-1-2021		1,000,000		1,021,250
Level 3 Financing Incorporated		5.13		5-1-2023		975,000		977,438
Level 3 Financing Incorporated		5.25		3-15-2026		650,000		637,813
Level 3 Financing Incorporated		5.38		8-15-2022		300,000		304,500
Level 3 Financing Incorporated		5.38		1-15-2024		700,000		696,500
Level 3 Financing Incorporated		5.38		5-1-2025		625,000		626,231
Level 3 Financing Incorporated		5.63		2-1-2023		350,000		354,375
Level 3 Financing Incorporated		6.13		1-15-2021		175,000		177,625

								5,564,386

Wireless Telecommunication Services : 1.64%
SBA Communications Corporation 144A		4.00		10-1-2022		225,000		221,625
SBA Communications Corporation		4.88		7-15-2022		640,000		655,200
Sprint Capital Corporation		6.88		11-15-2028		1,025,000		1,059,594
Sprint Capital Corporation		7.63		2-15-2025		1,050,000		1,089,375
Sprint Communications Incorporated		7.00		8-15-2020		225,000		237,470
T-Mobile USA Incorporated		4.00		4-15-2022		650,000		662,594
T-Mobile USA Incorporated		4.50		2-1-2026		125,000		125,643
T-Mobile USA Incorporated		4.75		2-1-2028		125,000		125,469
T-Mobile USA Incorporated		5.13		4-15-2025		425,000		438,813
T-Mobile USA Incorporated		5.38		4-15-2027		225,000		236,250
T-Mobile USA Incorporated		6.00		3-1-2023		300,000		313,995
T-Mobile USA Incorporated		6.38		3-1-2025		825,000		877,594
T-Mobile USA Incorporated		6.50		1-15-2024		80,000		85,004
T-Mobile USA Incorporated		6.63		4-1-2023		655,000		680,742
T-Mobile USA Incorporated		6.84		4-28-2023		1,060,000		1,106,322

								7,915,690

Utilities : 4.09%

Electric Utilities : 0.20%
Great Plains Energy Incorporated		4.85		6-1-2021		750,000		788,886
NextEra Energy Incorporated 144A		4.25		9-15-2024		175,000		175,875

								964,761

Gas Utilities : 0.21%
AmeriGas Partners LP		5.75		5-20-2027		1,000,000		1,023,750

Independent Power & Renewable Electricity Producers : 3.40%
NSG Holdings LLC 144A		7.75		12-15-2025		4,817,618		5,299,380
Pattern Energy Group Incorporated 144A		5.88		2-1-2024		5,225,000		5,499,313
TerraForm Power Operating LLC 144A		5.00		1-31-2028		675,000		665,719
TerraForm Power Operating LLC 144A		4.25		1-31-2023		3,025,000		2,994,750
TerraForm Power Operating LLC 144A		6.63		6-15-2025		1,850,000		2,018,813

								16,477,975

Multi-Utilities : 0.28%
Ameren Illinois Company		9.75		11-15-2018		500,000		528,943


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Multi-Utilities (continued)
CMS Energy Corporation		5.05	%	3-15-2022	$	750,000 $		804,356

							1,333,299

Total Corporate Bonds and Notes (Cost $340,252,439)								352,517,074

Foreign Corporate Bonds and Notes @: 4.93%

Consumer Staples : 0.20%

Food Products : 0.20%
BRF SA 144A (BRL)		7.75		5-22-2018		3,100,000		965,709

Energy : 0.28%

Oil, Gas & Consumable Fuels : 0.28%
Petroleos Mexicanos 144A (MXN)		7.19		9-12-2024		28,200,000		1,356,368

Financials : 4.15%

Banks : 4.09%
Eurofima (AUD)		6.25		12-28-2018		2,450,000		2,047,510
European Investment Bank (BRL)		7.25		6-28-2021		9,000,000		2,782,147
European Investment Bank (ZAR)		8.00		5-5-2027		21,000,000		1,714,391
European Investment Bank (ZAR)		8.38		7-29-2022		40,000,000		3,438,388
European Investment Bank (ZAR)		8.75		8-18-2025		20,000,000		1,724,985
European Investment Bank (ZAR)		9.00		3-31-2021		17,400,000		1,520,610
International Bank for Reconstruction & Development (ZAR)		7.00		6-7-2023		15,000,000		1,205,761
KfW (AUD)		5.00		3-19-2024		1,300,000		1,165,210
Landwirtschaftliche Rentenbank (ZAR)		6.00		3-18-2019		35,000,000		2,906,895
Landwirtschaftliche Rentenbank (ZAR)		8.25		5-23-2022		15,000,000		1,274,140

							19,780,037

Diversified Financial Services : 0.06%
AA Bond Company Limited (GBP)		4.25		7-31-2043		200,000		298,268

Telecommunication Services : 0.30%

Wireless Telecommunication Services : 0.30%
America Movil SAB de CV (MXN)		7.13		12-9-2024		28,850,000		1,448,363

Total Foreign Corporate Bonds and Notes (Cost $24,544,667)								23,848,745


Foreign Government Bonds @: 22.49%
Colombia (COP)		7.00		9-11-2019		18,500,000,000		6,725,818
Colombia (COP)		7.00		5-4-2022		18,650,000,000		6,872,675
Colombia (COP)		7.50		8-26-2026		22,725,000,000		8,566,323
Colombia (COP)		7.75		4-14-2021		5,250,000,000		1,960,207
India (INR)		7.80		4-11-2021		435,000,000		6,980,018
Indonesia (IDR)		7.88		4-15-2019		133,640,000,000		10,300,376
Indonesia (IDR)		8.38		9-15-2026		110,000,000,000		9,406,933
Malaysia (MYR)		4.18		7-15-2024		19,850,000		5,171,262
Malaysia (MYR)		4.23		6-30-2031		51,300,000		12,836,470
Mexico (MXN)		5.75		3-5-2026		72,000,000		3,441,903
Mexico (MXN)		8.00		11-7-2047		217,500,000		11,926,784
Mexico (MXN)		10.00		12-5-2024		76,220,000		4,637,066
New Zealand (NZD)		4.50		4-15-2027		8,250,000		6,849,564
Queensland Treasury (AUD)		5.75		7-22-2024		4,100,000		3,864,365
Republic of Peru (PEN)		6.35		8-12-2028		16,400,000		5,791,495


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value

Foreign Government Bonds @ (continued)
State of New South Wales Australia (AUD)		5.00	%		8-20-2024		3,900,000	$	3,558,404

Total Foreign Government Bonds (Cost $115,969,504)									108,889,663

Loans : 19.40%

Consumer Discretionary : 5.49%

Auto Components : 0.67%
Allison Transmission Incorporated (1 Month LIBOR +2.00%) ±		3.57			9-23-2022	$	1,880,939		1,897,002
Belron Finance US LLC (1 Month LIBOR +2.50%) ±		3.89			11-7-2024		300,000		303,249
Federal-Mogul Corporation (1 Month LIBOR +3.75%) ±		5.31			4-15-2021		1,036,583		1,044,523

									3,244,774

Distributors : 0.51%
Spin Holdco Incorporated (3 Month LIBOR +3.75%) ±		5.49			11-14-2022		2,459,780		2,478,228

Food & Staples Retailing : 0.08%
TKC Holdings Incorporated (2 Month LIBOR +4.25%) ±		6.03			2-1-2023		397,000		401,466

Hotels, Restaurants & Leisure : 2.64%
CCM Merger Incorporated (1 Month LIBOR +2.75%) ±‡		4.32			8-8-2021		683,102		688,655
Four Seasons Holdings Incorporated (1 Month LIBOR +2.50%) ±		4.07			11-30-2023		901,553		909,631
Greektown Holdings LLC (1 Month LIBOR +2.75%) ±		4.32			3-21-2024		4,987,469		4,997,843
La Quinta Intermediate Holdings LLC (3 Month LIBOR +2.75%) ±		4.47			4-14-2021		734,925		737,225
Montreign Operating Company LLC (1 Month LIBOR +8.25%) ±‡		9.82			12-7-2022		5,375,000		5,448,906

									12,782,260

Household Products : 0.40%
Anchor Glass Container Corporation (1 Month LIBOR +2.75%) ±		4.31			12-7-2023		594,015		596,902
Anchor Glass Container Corporation (1 Month LIBOR +7.75%) ±		9.30			12-7-2024		1,300,000		1,310,829

									1,907,731

Media : 1.19%
A-L Parent LLC (1 Month LIBOR +3.25%) ±‡		4.83			12-1-2023		3,465,000		3,499,650
Altice US Finance I Corporation (1 Month LIBOR +2.25%) ±		3.82			7-28-2025		714,197		715,090
Charter Communications Operating LLC (1 Month LIBOR +2.00%) ±		3.58			4-30-2025		1,100,000		1,106,017
CSC Holdings LLC (3 Month LIBOR +2.75%) ±		4.14			1-25-2026		150,000		151,032
Mission Broadcasting Incorporated (1 Month LIBOR +2.50%) ±		4.07			1-17-2024		31,726		31,908
Nexstar Broadcasting Group Incorporated (1 Month LIBOR +2.50%) ±		4.07			1-17-2024		251,943		253,391

									5,757,088

Consumer Staples : 0.17%

Food Products : 0.17%
B&G Foods Incorporated (1 Month LIBOR +2.00%) ±		3.57			11-2-2022		640,110		646,626
Prestige Brands Incorporated (1 Month LIBOR +2.75%) ±		4.32			1-26-2024		203,388		205,210

									851,836

Energy : 1.69%

Energy Equipment & Services : 0.73%
ExGen Renewables IV LLC (3 Month LIBOR +3.00%) ±‡		4.47			11-28-2024		650,000		658,125
Hummel Station (1 Month LIBOR +6.00%) ±‡		7.57			10-27-2022		2,969,434		2,887,774

									3,545,899


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels : 0.96%
Chesapeake Energy Corporation (3 Month LIBOR +7.50%) ±		8.95	%	8-23-2021	$	450,000	$	481,221
Traverse Midstream Partners LLC (6 Month LIBOR +4.00%) ±		5.85		9-27-2024		575,000		581,946
Ultra Resources Incorporated (3 Month LIBOR +3.00%) ±		4.41		4-12-2024		2,250,000		2,258,438
Veresen Midstream LP (3 Month LIBOR +3.00%) ±		4.69		3-31-2022		1,304,873		1,318,196

								4,639,801

Financials : 2.24%

Capital Markets : 0.28%
EIG Management Company LLC ±‡< (3 Month LIBOR +3.75%)		0.00		1-31-2025		125,000		124,531
Neptune Finco Corporation (1 Month LIBOR +2.25%) ±		3.81		7-17-2025		780,113		780,924
Russell Investments US Institutional Holdco Incorporated (3 Month LIBOR +4.25%) ±		5.94		6-1-2023		420,729		423,569

								1,329,024

Consumer Finance : 0.03%
KAR Auction Services Incorporated (3 Month LIBOR +2.50%) ±		4.25		3-9-2023		154,312		155,790

Diversified Financial Services : 1.09%
Ipreo Holdings LLC (3 Month LIBOR +3.00%) ±		4.69		8-6-2021		140,315		140,549
LPL Holdings Incorporated (3 Month LIBOR +2.25%) ±		3.81		9-23-2024		1,074,407		1,081,799
Nielsen Finance LLC (1 Month LIBOR +2.00%) ±		3.55		10-4-2023		469,080		471,839
Resolute Investment Managers Incorporated (3 Month LIBOR +3.25%) ±‡		4.94		4-30-2022		2,452,910		2,486,638
Resolute Investment Managers Incorporated (3 Month LIBOR +7.50%) ±‡		9.27		4-30-2023		1,090,000		1,104,988

								5,285,813

Insurance : 0.84%
Alliant Holdings I LLC (1 Month LIBOR +3.25%) ±		4.82		8-12-2022		1,385,812		1,395,346
AmWINS Group Incorporated (1 Month LIBOR +2.75%) ±		4.32		1-25-2024		895,179		900,774
Hub International Limited (3 Month LIBOR +3.00%) ±		4.41		10-2-2020		687,833		692,366
Solera Holdings Incorporated (1 Month LIBOR +3.25%) ±		4.82		3-3-2023		859,688		865,654
USI Incorporated (3 Month LIBOR +3.00%) ±		4.69		5-16-2024		224,438		225,391

								4,079,531

Health Care : 1.98%

Health Care Equipment & Supplies : 0.39%
DJO Finance LLC (1 Month LIBOR +3.25%) ±		4.88		6-8-2020		555,750		548,803
Kinetic Concepts Incorporated (3 Month LIBOR +3.25%) ±		4.94		2-2-2024		1,329,557		1,330,555

								1,879,358

Health Care Providers & Services : 0.58%
CHS Incorporated (3 Month LIBOR +3.00%) ±		4.48		1-27-2021		571,102		560,006
MPH Acquisition Holdings LLC (3 Month LIBOR +3.00%) ±		4.69		6-7-2023		484,222		487,476
Press Ganey Holdings Incorporated (1 Month LIBOR +6.50%) ±‡		8.07		10-21-2024		774,319		785,934
TeamHealth Incorporated (1 Month LIBOR +2.75%) ±		4.32		2-6-2024		445,129		436,226
Vizient Incorporated (1 Month LIBOR +3.50%) ±‡		4.32		2-13-2023		533,669		539,342

								2,808,984

Health Care Technology : 0.49%
Change Healthcare Holdings Incorporated (1 Month LIBOR +2.75%) ±		4.32		3-1-2024		664,019		668,003
Emerald BidCo Incorporated (1 Month LIBOR +3.00%) ±		4.57		10-21-2023		1,701,330		1,718,344

								2,386,347


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Life Sciences Tools & Services : 0.09%
INC Research LLC (1 Month LIBOR +2.25%) ±		3.82	%		8-1-2024	$	460,156	$	462,024

Pharmaceuticals : 0.43%
Endo Finance LLC (1 Month LIBOR +4.25%) ±		5.88			4-29-2024		295,204		295,352
Valeant Pharmaceuticals International Incorporated (1 Month LIBOR +3.50%) ±		5.06			4-1-2022		1,744,887		1,770,851

									2,066,203

Industrials : 2.79%

Aerospace & Defense : 0.51%
TransDigm Incorporated (3 Month LIBOR +3.00%) ±		4.67			8-22-2024		2,461,206		2,480,354

Commercial Services & Supplies : 1.72%
Advanced Disposal Services Incorporated (1 Month LIBOR +2.25%) ±		3.72			11-10-2023		1,216,966		1,224,292
Advantage Sales & Marketing LLC (3 Month LIBOR +6.50%) ±		8.27			7-25-2022		1,250,000		1,166,150
Casella Waste Systems Incorporated (1 Month LIBOR +2.50%) ±‡		4.06			10-17-2023		1,955,250		1,969,914
Columbus McKinnon Corporation (3 Month LIBOR +3.00%) ±‡		4.69			1-31-2024		1,039,601		1,049,997
GFL Environmental Incorporated (3 Month LIBOR +2.75%) ±		4.44			9-29-2023		172,813		173,461
Sedgwick Claims Management Services Incorporated (1 Month LIBOR +2.75%) ±		4.32			3-1-2021		518,829		520,032
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +3.25%) ±‡		4.82			5-14-2022		1,257,747		1,264,036
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +7.00%) ±‡		8.57			5-12-2023		17,885		17,617
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +7.00%) ±‡		8.57			5-14-2023		102,115		100,583
Wrangler Buyer Corporation (1 Month LIBOR +3.00%) ±		4.57			9-27-2024		825,000		831,072

									8,317,154

Electrical Equipment : 0.14%
Atkore International Incorporated (1 Month LIBOR +2.75%) ±<		0.00			12-22-2023		225,000		226,359
Generac Power Systems Incorporated (3 Month LIBOR +2.00%) ±		3.69			5-31-2023		450,000		452,439

									678,798

Machinery : 0.40%
Gates Global LLC (3 Month LIBOR +3.00%) ±		4.69			4-1-2024		607,716		612,049
Onex Wizard Acquisition Company (1 Month LIBOR +3.00%) ±		4.57			3-13-2022		576,059		579,803
RBS Global Incorporated (1 Month LIBOR +2.25%) ±		3.81			8-21-2024		750,000		755,535

									1,947,387

Transportation Infrastructure : 0.02%
OSG Bulk Ships Incorporated (3 Month LIBOR +4.25%) ±‡		5.65			8-5-2019		71,190		68,876

Information Technology : 2.25%

Electronic Equipment, Instruments & Components : 0.47%
Dell Incorporated (1 Month LIBOR +2.00%) ±		3.58			9-7-2023		2,266,529		2,274,666

Internet Software & Services : 1.62%
Ancestry.com Incorporated (1 Month LIBOR +3.25%) ±		4.83			10-19-2023		5,922,242		5,962,987
Applied Systems Incorporated (3 Month LIBOR +3.25%) ±		4.94			9-19-2024		324,188		327,384
Black Knight InfoServ LLC (1 Month LIBOR +2.25%) ±		3.88			5-27-2022		488,112		491,163
Infor US Incorporated (3 Month LIBOR +2.75%) ±		4.44			2-1-2022		787,092		791,027
Sophia Holding Finance LP (3 Month LIBOR +3.25%) ±		4.94			9-30-2022		144,663		145,464
Zayo Group LLC (1 Month LIBOR +2.25%) ±		3.82			1-19-2024		107,244		107,834

									7,825,859


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Semiconductors & Semiconductor Equipment : 0.07%
Micron Technology Incorporated (1 Month LIBOR +2.00%) ±		3.58	%		4-26-2022	$	344,750	$	347,408

Software : 0.09%
SS&C Technologies Incorporated (1 Month LIBOR +2.25%) ±		3.82			7-8-2022		447,276		449,593

Materials : 0.62%

Containers & Packaging : 0.62%
Berry Plastics Corporation (1 Month LIBOR +2.25%) ±		3.82			10-1-2022		412,327		415,362
Reynolds Group Holdings Incorporated (1 Month LIBOR +2.75%) ±		4.32			2-5-2023		2,468,813		2,486,761
RING Container Technologies (1 Month LIBOR +2.75%) ±		4.32			10-31-2024		125,000		125,664

									3,027,787

Real Estate : 1.11%

Equity REITs : 0.66%
ESH Hospitality Incorporated (1 Month LIBOR +2.25%) ±		3.82			8-30-2023		1,283,807		1,294,347
MGM Growth Properties LLC (1 Month LIBOR +2.25%) ±		3.82			4-25-2023		319,187		321,408
The Geo Group Incorporated (3 Month LIBOR +2.25%) ±		3.95			3-22-2024		1,544,932		1,551,205

									3,166,960

Real Estate Management & Development : 0.45%
Capital Automotive LP (1 Month LIBOR +2.50%) ±		4.08			3-24-2024		1,360,575		1,368,235
Capital Automotive LP (1 Month LIBOR +6.00%) ±		7.58			3-24-2025		808,086		824,248

									2,192,483

Telecommunication Services : 0.73%

Diversified Telecommunication Services : 0.64%
Level 3 Financing Incorporated (3 Month LIBOR +2.25%) ±		3.70			2-22-2024		555,420		557,736
Telesat Canada (3 Month LIBOR +3.00%) ±		4.70			11-17-2023		2,506,408		2,518,940

									3,076,676

Wireless Telecommunication Services : 0.09%
Sprint Communications Incorporated (1 Month LIBOR +2.50%) ±		4.13			2-2-2024		446,625		447,554

Utilities : 0.33%

Independent Power & Renewable Electricity Producers : 0.33%
TerraForm Power Operating LLC (2 Month LIBOR +2.75%) ±		4.15			11-8-2022		675,000		680,063
Vistra Energy Corporation (1 Month LIBOR +2.75%) ±<		4.31			12-14-2023		893,935		898,968

									1,579,031

Total Loans (Cost $93,216,908)									93,942,743

Municipal Obligations : 0.01%

New York : 0.01%
Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)		5.00			4-1-2018		45,000		45,084

Total Municipal Obligations (Cost $45,000)									45,084


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities : 4.84%
280 Park Avenue Mortgage Trust Series 2017-280P Class A (1 Month LIBOR +0.88%) 144A±		2.31	%	9-15-2034	$	1,000,000	$	1,001,871
Argent Securities Incorporated Series 2004-W5 Class AV3B (1 Month LIBOR +0.90%) ±		2.46		4-25-2034		50,985		51,403
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18		3-25-2033		161,014		160,617
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±±		5.76		7-10-2044		679,874		445,318
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±±		5.48		1-15-2049		180,340		182,696
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±±		6.12		2-10-2051		157,651		157,489
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50		9-25-2035		221,807		232,067
Banc of America Mortgage Securities Series 2003 Class 1A1 ±±		3.62		4-25-2033		261,390		247,297
Bear Stearns Asset Backed Securities Series 2002-2 Class A1 (1 Month LIBOR +0.66%) ±		2.22		10-25-2032		187,688		188,297
Centex Home Equity Series 2002-A Class AF6		5.54		1-25-2032		29,833		30,243
Centex Home Equity Series 2002-D Class AF6 ±±		4.66		12-25-2032		8,665		8,734
Centex Home Equity Series 2004-B Class AF6		4.69		3-25-2034		125,399		128,402
CGDBB Commercial Mortgage Trust Series 2017-BIOC Class A (1 Month LIBOR +0.79%) 144A±		2.35		7-15-2032		750,000		751,056
CIFC Funding Limited Series 2RA Class A1 (3 Month LIBOR +0.80%) 144A±		2.20		1-20-2028		485,000		485,061
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±±		4.87		9-10-2045		1,000,000		1,030,698
Citigroup Commercial Mortgage Trust Series 2015 Class A (1 Month LIBOR +1.15%) 144A±		2.63		9-15-2027		595,000		594,994
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		2.33		7-15-2032		750,000		750,314
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		2.58		7-15-2030		1,000,000		997,498
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 (1 Month LIBOR +0.76%) ±		2.31		12-25-2033		26,070		25,947
Commercial Mortgage Trust Series 2012-CR2 Class C ±±		4.83		8-15-2045		1,000,000		1,021,165
Commercial Mortgage Trust Series 2012-LC4 Class A4		3.29		12-10-2044		205,000		207,075
Commercial Mortgage Trust Series 2012-LC4 Class AM		4.06		12-10-2044		500,000		513,434
Commercial Mortgage Trust Series 2012-LC4 Class C ±±		5.60		12-10-2044		500,000		512,792
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.24		2-25-2034		89,701		92,240
Countrywide Home Loans Series 2003-48 Class 2A2 ±±		3.67		10-25-2033		69,350		68,613
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±±		2.91		9-25-2032		546,029		528,632
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±±		3.74		6-25-2033		95,809		95,207
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±±		3.46		3-25-2033		25,702		25,572
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 (1 Month LIBOR +0.66%) ±		2.22		4-25-2036		20,756		20,801
Crown Point Limited Series 2015-3A Class A1AR (3 Month LIBOR +0.91%) 144A±		2.64		12-31-2027		500,000		500,134
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±±		4.62		7-25-2034		171,479		171,280
Global Mortgage Securitization Limited Series 2004-A Class A2 (1 Month LIBOR +0.32%) 144A±		1.88		11-25-2032		98,337		93,281
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±±(c)		1.38		8-10-2043		5,119,827		139,650
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±±(c)		2.22		5-10-2045		3,386,370		202,162
GS Mortgage Securities Trust Series 2014 Class C 144A		3.79		1-10-2031		1,000,000		1,009,603
GSAA Home Equity Trust Series 2004-5 Class AF5		5.61		6-25-2034		2,467		2,469
GSCCRE Commercial Mortgage Trust Series 2015-HULA Class C (1 Month LIBOR +2.75%) 144A±		4.23		8-15-2032		1,000,000		1,003,743
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 (1 Month LIBOR +0.65%) ±		2.21		4-25-2035		4,204		4,210
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 (1 Month LIBOR +0.30%) 144A±		1.86		3-25-2035		74,834		74,258
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2013-C17 Class B ±±		4.88		1-15-2047		50,000		52,779


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±±		5.47	%	6-12-2047	$	269,877	$	269,601
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		1.61		6-12-2047		231,323		227,600
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±±		5.46		1-15-2049		166,679		167,196
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-PHH Class A (1 Month LIBOR +1.45%) 144A±		2.93		8-15-2027		700,000		700,001
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±±		3.64		7-25-2034		49,763		50,361
JPMorgan Mortgage Trust Series 2004-A3 Class 3A3 ±±		3.51		7-25-2034		60,226		59,435
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±±		3.72		6-25-2035		190,115		193,468
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±±		6.00		2-27-2037		7,685		7,708
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±±		6.00		2-27-2037		2,059		2,053
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±±		3.54		12-25-2033		313,550		314,325
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±±		3.54		1-25-2034		8,399		8,217
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±±		3.46		11-21-2034		15,343		15,718
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50		1-25-2020		14,215		14,462
MASTR Specialized Loan Trust Series 2005-3 Class A1 (1 Month LIBOR +0.36%) 144A±		1.92		11-25-2035		238,352		237,298
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3		5.25		8-25-2036		18,841		18,989
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±±		5.81		6-12-2050		40,336		40,314
Mesa Trust Asset Backed Certificates Series 2001-5 Class A (1 Month LIBOR +0.40%) 144A±		2.35		12-25-2031		12,899		12,710
Mid-State Trust Series 11 Class A1		4.86		7-15-2038		196,208		203,180
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 (6 Month LIBOR +0.68%) ±		2.33		1-25-2029		75,698		75,507
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±±(c)		1.48		8-15-2045		4,191,819		218,615
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C11 Class A4 ±±		4.16		8-15-2046		569,000		599,212
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 (1 Month LIBOR +1.05%) ±		2.61		12-27-2033		415,035		416,166
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±±		5.42		3-15-2045		900,000		925,887
Morgan Stanley Mortgage Loan Trust Series 2004-4 Class 2A ±±		6.40		9-25-2034		41,700		45,526
New Century Home Equity Loan Trust Series 2004-3 Class M1 (1 Month LIBOR +0.93%) ±		2.49		11-25-2034		1,165,049		1,168,413
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) 144A±		2.34		5-21-2027		700,000		700,187
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±±		3.48		5-25-2035		20,344		19,895
Rait Trust Series 2017-FL8 Class A (1 Month LIBOR +0.85%) 144A±		2.23		12-15-2037		341,536		341,984
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±±		4.13		12-26-2035		4,132		4,137
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88		2-25-2035		109,065		109,373
Saxon Asset Securities Trust Series 2002-1 Class AF5		6.76		12-25-2030		126,668		129,031
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		410,708		416,098
Sequoia Mortgage Trust Series 2003-1 Class 1A (1 Month LIBOR +0.76%) ±		2.32		4-20-2033		13,205		12,966
SoFi Professional Loan Program LLC Series 2017-A Class A2B 144A		2.40		3-26-2040		750,000		734,352
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		2.35		8-20-2030		465,000		466,065
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±±		3.49		3-25-2034		46,737		46,363
Structured Asset Securities Corporation Series 1998-2 Class A (1 Month LIBOR +0.52%) ±		2.08		2-25-2028		167,593		166,277
Structured Asset Securities Corporation Series 2002-9 Class A2 (1 Month LIBOR +0.60%) ±		1.85		10-25-2027		50,742		50,080
Terwin Mortgage Trust Series 2003-6HE Class A3 (1 Month LIBOR +1.14%) ±		2.70		11-25-2033		171,910		172,510
Vendee Mortgage Trust Series 2003-2 Class IO ±±(c)		0.72		5-15-2033		4,045,097		123,028
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50		7-25-2034		114,540		123,391

Total Non-Agency Mortgage-Backed Securities (Cost $23,417,010)								23,416,801


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name				Expiration date		Shares		Value
Rights : 0.05%

Utilities : 0.05%

Independent Power & Renewable Electricity Producers : 0.05%
Vistra Energy Corporation †					12-31-2046		327,375	$	245,531

Total Rights (Cost $340,913)									245,531


	Interest rate			Maturity date		Principal

Yankee Corporate Bonds and Notes : 8.64%

Consumer Discretionary : 0.16%

Media : 0.16%
WPP Finance 2010		3.63	%		9-7-2022	$	750,000		764,335


Consumer Staples : 0.32%

Beverages : 0.16%
Pernod Ricard SA 144A		4.45			1-15-2022		760,000		797,081


Tobacco : 0.16%
BAT International Finance plc 144A		3.25			6-7-2022		750,000		752,442


Energy : 2.25%

Energy Equipment & Services : 0.36%
Ensco plc		5.75			10-1-2044		2,320,000		1,655,900
Trinidad Drilling Limited 144A		6.63			2-15-2025		75,000		73,500

									1,729,400


Oil, Gas & Consumable Fuels : 1.89%
Baytex Energy Corporation 144A		5.13			6-1-2021		2,114,000		2,045,295
Baytex Energy Corporation 144A		5.63			6-1-2024		900,000		843,750
Griffin Coal Mining Company Limited 144A(a)(p)†‡		9.50			12-1-2016		1,685,411		6,742
Griffin Coal Mining Company Limited (a)(p)†‡		9.50			12-1-2016		137,792		551
Teekay Corporation		8.50			1-15-2020		5,625,000		5,853,375
Woodside Finance Limited 144A		8.75			3-1-2019		405,000		429,700

									9,179,413


Financials : 1.02%

Banks : 0.78%
ABN AMRO Bank NV 144A		4.80			4-18-2026		750,000		789,746
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		671,080
Corporación Andina de Fomento		4.38			6-15-2022		958,000		1,013,037
Nielsen Holding and Finance BV 144A		5.00			2-1-2025		875,000		883,750
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		415,000		425,375
Preferred Term Securities XII Limited (a)†		0.00			12-24-2033		635,000		0

									3,782,988


Diversified Financial Services : 0.24%
GE Capital International Funding Company		2.34			11-15-2020		527,000		519,687
Tyco Electronics Group SA		3.50			2-3-2022		625,000		637,680

									1,157,367


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Health Care : 1.34%

Pharmaceuticals : 1.34%
Valeant Pharmaceuticals International Incorporated 144A		5.50	%	3-1-2023	$	2,200,000	$	1,975,336
Valeant Pharmaceuticals International Incorporated 144A		5.50		11-1-2025		375,000		378,938
Valeant Pharmaceuticals International Incorporated 144A		5.88		5-15-2023		770,000		695,310
Valeant Pharmaceuticals International Incorporated 144A		6.13		4-15-2025		1,840,000		1,647,168
Valeant Pharmaceuticals International Incorporated 144A		6.50		3-15-2022		325,000		340,535
Valeant Pharmaceuticals International Incorporated 144A		6.75		8-15-2021		425,000		420,750
Valeant Pharmaceuticals International Incorporated 144A		7.00		3-15-2024		575,000		611,478
Valeant Pharmaceuticals International Incorporated 144A		7.50		7-15-2021		10,000		10,038
Valeant Pharmaceuticals International Incorporated 144A		9.00		12-15-2025		395,000		405,740

								6,485,293

Industrials : 0.98%

Commercial Services & Supplies : 0.54%
GFL Environmental Incorporated 144A		9.88		2-1-2021		500,000		526,875
Ritchie Brothers Auctioneers Incorporated 144A		5.38		1-15-2025		2,050,000		2,106,375

								2,633,250

Machinery : 0.15%
Sensata Technologies BV 144A		5.00		10-1-2025		260,000		269,750
Sensata Technologies BV 144A		6.25		2-15-2026		400,000		430,000

								699,750

Professional Services : 0.13%
IHS Markit Limited 144A		4.75		2-15-2025		600,000		624,000

Road & Rail : 0.16%
Canadian Pacific Railway Company		4.50		1-15-2022		750,000		787,044


Materials : 1.10%

Containers & Packaging : 0.71%
Ardagh Packaging Finance plc 144A		4.25		9-15-2022		375,000		377,164
Ardagh Packaging Finance plc 144A		6.00		2-15-2025		1,700,000		1,755,250
Ardagh Packaging Finance plc 144A		7.25		5-15-2024		725,000		779,158
OI European Group BV 144A		4.00		3-15-2023		550,000		545,531

								3,457,103

Metals & Mining : 0.39%
ArcelorMittal SA		6.13		6-1-2025		275,000		312,813
Glencore Finance Canada Limited 144A		4.25		10-25-2022		750,000		778,701
Vale Overseas Limited		4.38		1-11-2022		750,000		778,125

								1,869,639

Telecommunication Services : 1.33%

Diversified Telecommunication Services : 1.20%
Intelsat Jackson Holdings SA		5.50		8-1-2023		5,775,000		4,533,375
Intelsat Luxembourg SA		7.75		6-1-2021		1,970,000		890,834
Virgin Media Finance plc 144A		6.38		4-15-2023		365,000		375,950

								5,800,159

Wireless Telecommunication Services : 0.13%
Globo Communicacoes Participacoes SA 144A		4.88		4-11-2022		595,000		609,131


Wells Fargo Multi-Sector Income Fund		Portfolio of investments —- January 31, 2018 (unaudited)


Security name			Interest rate			Maturity date		Principal		Value
Utilities : 0.14%

Electric Utilities : 0.14%
Comision Federal de Electricidad 144A				4.88	%		5-26-2021	$	650,000	$	679,900

Total Yankee Corporate Bonds and Notes (Cost $44,215,965)											41,808,295


			Yield			Shares
Short-Term Investments : 2.57%

Investment Companies : 2.57%
Wells Fargo Government Money Market Fund Select Class (l)(u)##				1.24					12,444,416		12,444,416

Total Short-Term Investments (Cost $12,444,416)											12,444,416

Total investments in securities (Cost $664,971,348)	137.98	%									667,972,473
Other assets and liabilities, net	(37.98	)									(183,857,899	)

Total net assets	100.00	%								$	484,114,574



±		Variable rate investment. The rate shown is the rate in effect at period end.
±±		The coupon of the security is adjusted based on the principal and interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages.
(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.
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.
¥		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.
(a)		The security is fair valued in accordance with procedures approved by the Board of Trustees.
†		Non-income-earning security
@		Foreign bond principal is denominated in the local currency of the issuer.
‡		Security is valued using significant unobservable inputs.
<		All or a portion of the position represents an unfunded loan commitment. The rate represents current interest rate if the loan is partially funded.
(p)		Issuer is undergoing bankruptcy proceedings.
(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 unfunded loans.


Abbreviations:
AUD		Australian dollar
BRL		Brazilian real
COP		Colombian peso
FHLMC		Federal Home Loan Mortgage Corporation
FNMA		Federal National Mortgage Association
GBP		Great British pound
GNMA		Government National Mortgage Association
IDR		Indonesian rupiah
INR		Indian rupee
LIBOR		London Interbank Offered Rate
LLC		Limited liability company
LP		Limited partnership
MXN		Mexican peso
MYR		Malaysian ringgit


Portfolio of investments — January 31, 2018 (unaudited)		Wells Fargo Multi-Sector Income Fund


NZD		New Zealand dollar
PEN		Peruvian sol
plc		Public limited company
REIT		Real estate investment trust
ZAR		South African rand

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:


	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Value, end of period		% of net assets
Short-Term Investments
Investment Companies
Wells Fargo Government Money Market Fund Select Class		25,651,250		45,926,379		59,133,213		12,444,416	$	12,444,416		2.57	%

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

Notes to Portfolio of investments – January 31, 2018 (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, 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 Wells Fargo Asset Management Pricing Committee 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 Wells Fargo Asset Management Pricing Committee. 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 Wells Fargo Asset Management Pricing Committee 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 Wells Fargo Asset Management Pricing Committee. 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 of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Loans

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

As of January 31, 2018, the Fund had unfunded loan commitments of $549,531.

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 unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

Level 1 – quoted prices in active markets for identical securities

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2018:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	7,933,023	$	0	$	7,933,023
Asset-backed securities		0		2,880,019		0		2,880,019
Common stocks
Materials		1,079		0		0		1,079
Corporate bonds and notes		0		352,517,074		0		352,517,074
Foreign corporate bonds and notes		0		23,848,745		0		23,848,745
Foreign government bonds		0		108,889,663		0		108,889,663
Loans		0		71,247,177		22,695,566		93,942,743
Municipal obligations		0		45,084		0		45,084
Non-agency mortgage-backed securities		0		23,416,801		0		23,416,801
Rights
Utilities		0		245,531		0		245,531
Yankee corporate bonds and notes		0		41,801,002		7,293		41,808,295
Short-term investments
Investment companies		12,444,416		0		0		12,444,416

Total assets	$	12,445,495	$	632,824,119	$	22,702,859	$	667,972,473

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At January 31, 2018, 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:


	Asset-backed securities			Loans			Yankee corporate bonds and notes		Total
Balance as of October 31, 2017	$	700,000		$	20,926,735		$	7,293	$	21,634,028
Accrued discounts (premiums)		0			8,080			0		8,080
Realized gains (losses)		0			(8,530	)		0		(8,530	)
Change in unrealized gains (losses)		187			329,034			0		329,221
Purchases		0			780,719			0		780,719
Sales		0			(2,408,016	)		0		(2,408,016	)
Transfers into Level 3		0			4,382,955			0		4,382,955
Transfers out of Level 3		(700,187	)		(1,315,411	)		0		(2,015,598	)

Balance as of January 31, 2018	$	0		$	22,695,566		$	7,293	$	22,702,859

Change in unrealized gains (losses) relating to securities still held at January 31, 2018	$	0		$	223,957		$	0	$	223,957

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

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

ITEM 2. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Multi-Sector Income Fund (the “Fund”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Fund is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Fund’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Wells Fargo Multi-Sector Income Fund

By:		/s/ Andrew Owen
		Andrew Owen
		President

Date: March 27, 2018

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


Wells Fargo Multi-Sector Income Fund

By:		/s/ Andrew Owen
		Andrew Owen
		President

Date: March 27, 2018

By:		/s/ Jeremy DePalma
		Jeremy DePalma
		Treasurer

Date: March 27, 2018