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, 2017

ITEM 1. INVESTMENTS


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


Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 1.75%
FHLMC ±		3.77	%		9-1-2032	$	1,042,234	$	1,081,684
FHLMC		8.50			7-1-2028		41,662		48,408
FHLMC Series 1383 ±		2.90			2-1-2037		243,815		256,711
FHLMC Series 196 Class A ±		2.03			12-15-2021		12,851		12,959
FHLMC Series 2011-K16 Class B 144A±		4.60			11-25-2046		1,000,000		1,077,413
FHLMC Series 2011-K701 Class B 144A±		4.24			7-25-2048		165,000		165,329
FHLMC Series 2012-K17 Class B 144A±		4.34			12-25-2044		675,000		718,940
FHLMC Series 2012-K18 Class B 144A±		4.26			1-25-2045		810,000		859,575
FHLMC Series 2012-K706 Class B 144A±		4.03			11-25-2044		500,000		509,831
FHLMC Series 2012-K706 Class C 144A±		4.03			11-25-2044		805,000		818,539
FHLMC Series 2012-K707 Class B 144A±		3.88			1-25-2047		930,000		949,412
FHLMC Series 2012-K711 Class B 144A±		3.56			8-25-2045		264,000		270,262
FHLMC Series 2013-K30 Class B 144A±		3.56			6-25-2045		700,000		724,380
FHLMC Series 2390 Class FD ±		1.68			12-15-2031		20,188		20,269
FHLMC Series 2567 Class FH ±		1.63			2-15-2033		63,498		63,548
FHLMC Series K007 Class X1 ±(c)		1.22			4-25-2020		783,570		18,465
FHLMC Series K016 Class X1 ±(c)		1.69			10-25-2021		367,524		19,533
FHLMC Series K020 Class X1 ±(c)		1.57			5-25-2022		6,513,569		368,219
FNMA ±		3.00			9-1-2037		478,899		504,419
FNMA		6.00			4-1-2033		62,182		64,461
FNMA		7.50			2-1-2030		26,210		26,412
FNMA		7.50			9-1-2030		33,647		34,055
FNMA Series 1996-46 Class FA ±		1.73			8-25-2021		8,039		8,046
FNMA Series 1997-20 Class IO ±(c)		1.84			3-25-2027		704,806		19,811
FNMA Series 2001-25 Class Z		6.00			6-25-2031		112,680		125,047
FNMA Series 2001-35 Class F ±		1.83			7-25-2031		5,282		5,362
FNMA Series 2001-57 Class F ±		1.73			6-25-2031		5,318		5,347
FNMA Series 2002-77 Class FH ±		1.63			12-18-2032		39,097		39,124
FNMA Series 2002-97 Class FR ±		1.78			1-25-2033		9,132		9,249
FNMA Series G91-16 Class F ±		1.68			6-25-2021		7,625		7,663
FNMA Series G92-17 Class F ±		2.28			3-25-2022		34,896		35,373
GNMA		6.50			6-15-2028		26,573		29,101
GNMA		7.25			9-15-2017		472		472
GNMA		7.25			1-15-2018		1,074		1,076
GNMA		7.25			2-15-2018		1,147		1,149
GNMA		7.25			5-15-2018		1,781		1,784

Total Agency Securities (Cost $8,425,725)									8,901,428

Asset-Backed Securities: 0.24%
CVS Pass-Through Trust Series T		6.04			12-10-2028		505,690		573,346
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2 ±		2.21			5-20-2030		647,746		650,872

Total Asset-Backed Securities (Cost $1,215,414)									1,224,218

						Shares
Common Stocks: 0.31%

Energy: 0.04%

Oil, Gas & Consumable Fuels: 0.04%
SilverBow Resources Incorporated †(i)							8,665		216,885

Materials: 0.00%

Chemicals: 0.00%
LyondellBasell Industries NV Class A							9		811


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


Security name						Shares		Value
Utilities: 0.27%

Independent Power & Renewable Electricity Producers: 0.27%
Vistra Energy Corporation							84,651	$	1,390,816

Total Common Stocks (Cost $6,853,438)									1,608,512

	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 70.78%

Consumer Discretionary: 11.57%

Auto Components: 1.06%
Allison Transmission Incorporated 144A		5.00	%		10-1-2024	$	2,250,000		2,328,750
Cooper Tire & Rubber Company (i)		7.63			3-15-2027		1,710,000		1,915,200
Cooper Tire & Rubber Company		8.00			12-15-2019		550,000		613,250
Goodyear Tire & Rubber Company		8.75			8-15-2020		468,000		547,560

									5,404,760

Distributors: 0.18%
LKQ Corporation		4.75			5-15-2023		900,000		911,250

Diversified Consumer Services: 1.13%
Service Corporation International		7.50			4-1-2027		3,400,000		4,046,000
Service Corporation International		7.63			10-1-2018		680,000		722,500
Service Corporation International		8.00			11-15-2021		850,000		1,007,250

									5,775,750

Hotels, Restaurants & Leisure: 0.50%
CCM Merger Incorporated 144A		6.00			3-15-2022		2,450,000		2,567,233

Internet & Direct Marketing Retail: 0.16%
Expedia Incorporated		5.95			8-15-2020		750,000		821,519

Leisure Products: 0.01%
Vista Outdoor Incorporated		5.88			10-1-2023		25,000		25,625

Media: 6.92%
Altice US Finance I Corporation 144A		5.38			7-15-2023		1,395,000		1,464,750
Altice US Finance I Corporation 144A		5.50			5-15-2026		1,275,000		1,351,500
AMC Entertainment Holdings Incorporated		5.88			11-15-2026		925,000		943,500
Cablevision Systems Corporation		8.63			9-15-2017		582,000		585,638
CBS Radio Incorporated 144A		7.25			11-1-2024		45,000		47,419
CCO Holdings LLC		5.13			2-15-2023		100,000		103,500
CCO Holdings LLC 144A		5.13			5-1-2027		450,000		465,188
CCO Holdings LLC		5.25			9-30-2022		1,250,000		1,289,063
CCO Holdings LLC 144A		5.38			5-1-2025		4,150,000		4,414,563
CCO Holdings LLC 144A		5.50			5-1-2026		215,000		228,506
CCO Holdings LLC 144A		5.75			2-15-2026		3,375,000		3,628,125
CCO Holdings LLC 144A		5.88			4-1-2024		1,250,000		1,342,585
Cequel Communications Holdings I LLC 144A		7.75			7-15-2025		2,030,000		2,265,988
Cinemark USA Incorporated		4.88			6-1-2023		325,000		330,281
CSC Holdings LLC		7.88			2-15-2018		1,000,000		1,028,750
CSC Holdings LLC		8.63			2-15-2019		383,000		419,385
EMI Music Publishing 144A		7.63			6-15-2024		525,000		582,750
Gray Television Incorporated 144A		5.13			10-15-2024		450,000		460,688
Gray Television Incorporated 144A		5.88			7-15-2026		3,875,000		4,010,625
Interpublic Group of Companies		4.00			3-15-2022		750,000		790,136
Lamar Media Corporation		5.88			2-1-2022		690,000		712,425
Live Nation Entertainment Incorporated 144A		4.88			11-1-2024		1,400,000		1,435,000
National CineMedia LLC		5.75			8-15-2026		575,000		552,000


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


Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
National CineMedia LLC		6.00	%		4-15-2022	$	1,725,000	$	1,772,438
Nexstar Broadcasting Group Incorporated 144A		5.63			8-1-2024		850,000		878,688
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		950,000		992,750
Outfront Media Capital Corporation		5.63			2-15-2024		20,000		20,875
Outfront Media Capital Corporation		5.88			3-15-2025		775,000		812,781
Salem Media Group Incorporated 144A		6.75			6-1-2024		1,500,000		1,556,250
Time Warner Cable Incorporated		4.00			1-15-2022		750,000		794,227

									35,280,374

Multiline Retail: 0.12%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		600,000		602,537

Specialty Retail: 1.39%
Advance Auto Parts Incorporated		4.50			1-15-2022		600,000		638,959
Asbury Automotive Group Incorporated		6.00			12-15-2024		1,175,000		1,201,438
Lithia Motors Incorporated 144A		5.25			8-1-2025		265,000		272,950
Penske Auto Group Incorporated		5.38			12-1-2024		2,150,000		2,158,063
Penske Auto Group Incorporated		5.75			10-1-2022		1,155,000		1,195,425
Sonic Automotive Incorporated		5.00			5-15-2023		849,000		823,530
Sonic Automotive Incorporated		6.13			3-15-2027		775,000		778,875

									7,069,240

Textiles, Apparel & Luxury Goods: 0.10%
Wolverine World Wide Company 144A		5.00			9-1-2026		500,000		496,500


Consumer Staples: 1.57%

Beverages: 0.27%
Anheuser-Busch InBev SA		3.75			1-15-2022		600,000		637,450
Cott Beverages Incorporated 144A		5.50			4-1-2025		675,000		709,594

									1,347,044

Food Products: 1.16%
B&G Foods Incorporated		4.63			6-1-2021		300,000		307,125
B&G Foods Incorporated		5.25			4-1-2025		1,050,000		1,094,625
Darling Ingredients Incorporated		5.38			1-15-2022		180,000		187,200
Kraft Foods Group Incorporated		3.50			6-6-2022		750,000		778,491
Pilgrim’s Pride Corporation 144A		5.75			3-15-2025		1,130,000		1,158,250
Pinnacle Foods Incorporated 144A		5.63			5-1-2024		325,000		337,188
Pinnacle Foods Incorporated		5.88			1-15-2024		75,000		80,438
Post Holdings Incorporated 144A		5.00			8-15-2026		700,000		718,375
Post Holdings Incorporated 144A		5.50			3-1-2025		525,000		553,875
Post Holdings Incorporated 144A		5.75			3-1-2027		525,000		556,500
Prestige Brands Incorporated 144A		6.38			3-1-2024		130,000		139,588

									5,911,655

Tobacco: 0.14%
Reynolds American Incorporated		6.88			5-1-2020		650,000		731,457


Energy: 18.71%

Energy Equipment & Services: 5.68%
Bristow Group Incorporated		6.25			10-15-2022		3,330,000		2,156,175
Era Group Incorporated		7.75			12-15-2022		2,350,000		2,138,500
Hilcorp Energy Company 144A		5.00			12-1-2024		1,450,000		1,376,775
Hilcorp Energy Company 144A		5.75			10-1-2025		1,525,000		1,486,875
Hornbeck Offshore Services Incorporated		1.50			9-1-2019		4,750,000		3,776,250
Hornbeck Offshore Services Incorporated		5.00			3-1-2021		150,000		82,500


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


Security name	Interest rate			Maturity date		Principal		Value
Energy Equipment & Services (continued)
Hornbeck Offshore Services Incorporated		5.88	%		4-1-2020	$	1,860,000	$	1,120,650
NGPL PipeCo LLC 144A%%<		4.38			8-15-2022		350,000		360,063
NGPL PipeCo LLC 144A%%<		4.88			8-15-2027		550,000		566,500
NGPL PipeCo LLC 144A		7.12			12-15-2017		2,060,000		2,096,050
NGPL PipeCo LLC 144A		7.77			12-15-2037		7,660,000		9,498,400
PHI Incorporated		5.25			3-15-2019		4,425,000		4,270,125

									28,928,863

Oil, Gas & Consumable Fuels: 13.03%
Carrizo Oil & Gas Incorporated		8.25			7-15-2025		800,000		843,000
Continental Resources Incorporated		3.80			6-1-2024		700,000		647,500
Continental Resources Incorporated		5.00			9-15-2022		875,000		867,344
DCP Midstream Operating Company		2.70			4-1-2019		725,000		720,469
Denbury Resources Incorporated		4.63			7-15-2023		1,650,000		841,500
Denbury Resources Incorporated		6.38			8-15-2021		3,209,000		1,869,243
El Paso LLC		6.50			4-1-2020		750,000		826,067
Enable Midstream Partner LP		2.40			5-15-2019		2,350,000		2,344,130
Enable Midstream Partner LP		3.90			5-15-2024		1,750,000		1,746,430
Enable Midstream Partner LP		4.40			3-15-2027		775,000		785,757
Enable Oklahoma Intrastate Transmission LLC 144A		6.25			3-15-2020		250,000		269,005
Energy Transfer Partners LP		5.20			2-1-2022		750,000		814,160
EnLink Midstream LLC		4.15			6-1-2025		2,350,000		2,356,155
EnLink Midstream LLC		4.40			4-1-2024		3,200,000		3,286,445
Exterran Partners LP		6.00			4-1-2021		3,100,000		3,069,000
Gulfport Energy Corporation 144A		6.38			5-15-2025		800,000		799,000
Gulfport Energy Corporation		6.63			5-1-2023		1,900,000		1,919,000
Kinder Morgan Energy Partners LP		3.95			9-1-2022		750,000		778,258
Kinder Morgan Incorporated		6.50			9-15-2020		285,000		317,345
Kinder Morgan Incorporated (i)		7.42			2-15-2037		800,000		920,721
Matador Resources Company		6.88			4-15-2023		300,000		318,000
Murphy Oil Corporation		4.70			12-1-2022		975,000		957,938
Murphy Oil Corporation		6.88			8-15-2024		850,000		903,125
Nabors Industries Limited		0.75			1-15-2024		400,000		316,500
Nabors Industries Limited		4.63			9-15-2021		750,000		718,125
Overseas Shipholding Group Incorporated		8.13			3-30-2018		2,275,000		2,326,188
Phillips 66		4.30			4-1-2022		625,000		671,546
Pioneer Natural Resources Company		3.95			7-15-2022		750,000		790,012
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		3,500,000		3,702,370
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		3,524,000		3,883,008
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		1,465,000		1,666,438
Rose Rock Midstream LP		5.63			7-15-2022		1,200,000		1,191,000
Rose Rock Midstream LP		5.63			11-15-2023		825,000		810,305
Sabine Oil & Gas Corporation (a)(i)(s)		7.25			6-15-2019		520,000		0
Sabine Oil & Gas Corporation (a)(i)(s)		7.50			9-15-2020		3,500,000		0
Sabine Pass Liquefaction LLC		5.63			2-1-2021		600,000		655,588
Sabine Pass Liquefaction LLC		5.63			4-15-2023		1,710,000		1,904,018
Sabine Pass Liquefaction LLC		5.63			3-1-2025		460,000		511,732
Sabine Pass Liquefaction LLC		5.75			5-15-2024		1,625,000		1,826,949
Sabine Pass Liquefaction LLC		6.25			3-15-2022		3,550,000		4,029,229
SemGroup Corporation 144A		6.38			3-15-2025		3,425,000		3,390,750
Southern Star Central Corporation 144A		5.13			7-15-2022		775,000		792,438
Southwestern Energy Company		4.10			3-15-2022		425,000		396,313
Southwestern Energy Company		6.70			1-23-2025		650,000		640,049
Summit Midstream Holdings LLC		5.75			4-15-2025		225,000		227,813
Tallgrass Energy Partners LP 144A		5.50			9-15-2024		4,600,000		4,709,250
Tesoro Logistics LP		6.13			10-15-2021		225,000		233,156
Tesoro Logistics LP		6.38			5-1-2024		450,000		491,625
Ultra Resources Incorporated 144A		6.88			4-15-2022		600,000		618,000
Ultra Resources Incorporated 144A		7.13			4-15-2025		505,000		514,974
Western Gas Partners LP		4.00			7-1-2022		175,000		180,530
Western Gas Partners LP		5.38			6-1-2021		225,000		242,308


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


Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Williams Partners LP		3.35	%		8-15-2022	$	750,000	$	761,500

									66,401,306

Financials: 9.23%

Banks: 0.62%
Bank of America Corporation		5.70			1-24-2022		250,000		282,978
Citigroup Incorporated		4.50			1-14-2022		250,000		269,694
Citigroup Incorporated		6.00			8-15-2017		650,000		651,271
City National Bank		5.38			7-15-2022		500,000		557,309
HSBC Bank USA		6.00			8-9-2017		650,000		650,502
JPMorgan Chase & Company		3.38			5-1-2023		750,000		765,098

									3,176,852

Capital Markets: 0.39%
ACE Securities Corporation ±		3.86			6-25-2033		294,902		293,720
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		750,000		839,165
Goldman Sachs Group Incorporated		5.75			1-24-2022		750,000		845,933

									1,978,818

Consumer Finance: 3.26%
Ally Financial Incorporated		8.00			12-31-2018		780,000		839,475
Ally Financial Incorporated		8.00			3-15-2020		755,000		856,925
Discover Financial Services		5.20			4-27-2022		750,000		821,093
FirstCash Incorporated 144A		5.38			6-1-2024		575,000		605,188
Ford Motor Credit Company LLC		5.00			5-15-2018		650,000		666,176
General Motors Financial Company Incorporated		3.70			5-9-2023		750,000		765,500
Navient Corporation		8.00			3-25-2020		930,000		1,028,580
Navient Corporation		8.45			6-15-2018		1,675,000		1,759,085
OneMain Financial Group LLC 144A		7.25			12-15-2021		3,425,000		3,604,813
Springleaf Finance Corporation		6.00			6-1-2020		825,000		870,375
Springleaf Finance Corporation		6.50			9-15-2017		200,000		200,750
Springleaf Finance Corporation		6.90			12-15-2017		4,550,000		4,623,938

									16,641,898

Diversified Financial Services: 2.98%
General Electric Capital Corporation		4.65			10-17-2021		187,000		205,877
Infinity Acquisition LLC 144A(i)		7.25			8-1-2022		960,000		912,000
ING US Incorporated		5.50			7-15-2022		750,000		839,687
Jefferies Finance LLC 144A%%<		7.25			8-15-2024		225,000		225,563
LPL Holdings Incorporated 144A		5.75			9-15-2025		10,025,000		10,501,188
NewStar Financial Incorporated		7.25			5-1-2020		2,450,000		2,511,250

									15,195,565

Insurance: 1.98%
American International Group Incorporated		4.88			6-1-2022		750,000		828,839
Endurance Specialty Holdings Limited		7.00			7-15-2034		575,000		721,109
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		724,069
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		4,132,688
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		823,647
ProAssurance Corporation		5.30			11-15-2023		750,000		824,705
USIS Merger Subordinate Incorporated 144A		6.88			5-1-2025		225,000		232,875
W.R. Berkley Corporation		4.63			3-15-2022		650,000		706,365

									10,069,297


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


Security name	Interest rate			Maturity date		Principal		Value
Health Care: 6.08%

Biotechnology: 0.15%
Amgen Incorporated		3.63	%		5-15-2022	$	750,000	$	788,439

Health Care Equipment & Supplies: 1.15%
Hill-Rom Holdings Incorporated 144A		5.00			2-15-2025		400,000		411,000
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		211,000
Hologic Incorporated 144A		5.25			7-15-2022		670,000		707,688
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		1,425,000		1,506,938
Surgery Center Holdings Incorporated 144A		6.75			7-1-2025		1,050,000		1,078,875
Surgery Center Holdings Incorporated 144A		8.88			4-15-2021		1,800,000		1,953,000

									5,868,501

Health Care Providers & Services: 4.16%
Acadia Healthcare Company Incorporated		6.50			3-1-2024		190,000		204,250
Community Health Systems Incorporated		6.25			3-31-2023		390,000		399,263
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		828,443
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		495,000		502,326
DaVita HealthCare Partners Incorporated		5.13			7-15-2024		200,000		205,625
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		525,000		542,063
Express Scripts Holding Company		3.90			2-15-2022		665,000		698,441
HCA Incorporated		6.50			2-15-2020		1,400,000		1,529,500
HealthSouth Corporation		5.75			9-15-2025		575,000		592,250
Humana Incorporated		7.20			6-15-2018		750,000		784,865
Mednax Incorporated 144A		5.25			12-1-2023		475,000		489,250
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		1,750,000		1,894,375
MPT Operating Partnership LP		5.25			8-1-2026		1,250,000		1,306,250
MPT Operating Partnership LP		6.38			2-15-2022		1,075,000		1,109,938
MPT Operating Partnership LP		6.38			3-1-2024		110,000		119,900
Select Medical Corporation		6.38			6-1-2021		3,050,000		3,141,500
Tenet Healthcare Corporation 144A		4.63			7-15-2024		1,169,000		1,163,155
Tenet Healthcare Corporation		6.00			10-1-2020		1,475,000		1,580,094
Vizient Incorporated 144A		10.38			3-1-2024		3,550,000		4,104,688

									21,196,176

Health Care Technology: 0.29%
Change Healthcare Holdings Incorporated 144A		5.75			3-1-2025		1,200,000		1,240,500
QuintilesIMS Holdings Incorporated 144A		5.00			10-15-2026		225,000		235,688

									1,476,188

Life Sciences Tools & Services: 0.16%
Life Technologies Corporation		6.00			3-1-2020		750,000		819,491

Pharmaceuticals: 0.17%
Valeant Pharmaceuticals International Incorporated 144A		7.25			7-15-2022		75,000		70,688
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		772,364

									843,052

Industrials: 3.29%

Aerospace & Defense: 0.21%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		1,050,258

Airlines: 0.34%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,100,000		1,249,417
Delta Air Lines Incorporated		4.75			11-7-2021		469,889		493,384

									1,742,801


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


Security name	Interest rate			Maturity date	Principal		Value
Commercial Services & Supplies: 2.06%
Advanced Disposal Services Incorporated 144A(i)		5.63	%	11-15-2024	$	1,750,000	$	1,815,625
Aramark Services Incorporated		5.13		1-15-2024		420,000		446,078
Covanta Holding Corporation		5.88		3-1-2024		1,485,000		1,447,875
Covanta Holding Corporation		5.88		7-1-2025		900,000		875,250
Covanta Holding Corporation		6.38		10-1-2022		1,500,000		1,537,500
DAE Funding LLC 144A%%<		4.50		8-1-2022		400,000		407,000
DAE Funding LLC 144A%%<		5.00		8-1-2024		400,000		408,500
KAR Auction Services Incorporated 144A		5.13		6-1-2025		2,675,000		2,788,688
Republic Services Incorporated		3.55		6-1-2022		750,000		784,517

								10,511,033

Professional Services: 0.17%
Ascent Capital Group Incorporated		4.00		7-15-2020		375,000		300,000
Verisk Analytics Incorporated		5.80		5-1-2021		530,000		589,340

								889,340

Road & Rail: 0.13%
TTX Company 144A		2.60		6-15-2020		650,000		653,360

Trading Companies & Distributors: 0.38%
Ashtead Capital Incorporated 144A		6.50		7-15-2022		1,775,000		1,841,563
International Lease Finance Corporation 144A		7.13		9-1-2018		75,000		79,183

								1,920,746

Information Technology: 6.57%

Communications Equipment: 0.42%
CommScope Technologies Finance LLC 144A		5.00		3-15-2027		200,000		200,500
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		1,100,000		1,182,500
Motorola Solutions Incorporated		3.75		5-15-2022		750,000		777,106

								2,160,106

Electronic Equipment, Instruments & Components: 1.47%
Jabil Circuit Incorporated		8.25		3-15-2018		4,325,000		4,492,594
Keysight Technologies		4.60		4-6-2027		600,000		636,064
L-3 Communications Corporation		4.95		2-15-2021		750,000		808,496
Zebra Technologies Corporation		7.25		10-15-2022		1,450,000		1,543,344

								7,480,498

Internet Software & Services: 0.51%
Infor Software Parent LLC		6.50		5-15-2022		550,000		572,688
Infor Software Parent LLC (PIK at 7.88%) 144A		7.13		5-1-2021		550,000		569,250
Zayo Group LLC 144A		5.75		1-15-2027		1,125,000		1,192,500
Zayo Group LLC		6.00		4-1-2023		75,000		79,031
Zayo Group LLC		6.38		5-15-2025		175,000		189,656

								2,603,125

IT Services: 1.12%
Cardtronics Incorporated		5.13		8-1-2022		460,000		469,200
Cardtronics Incorporated 144A		5.50		5-1-2025		940,000		968,200
First Data Corporation 144A		5.00		1-15-2024		1,150,000		1,196,000
First Data Corporation 144A		5.38		8-15-2023		275,000		287,719
First Data Corporation 144A		5.75		1-15-2024		320,000		338,000


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


Security name	Interest rate			Maturity date	Principal		Value
IT Services (continued)
Gartner Incorporated 144A		5.13	%	4-1-2025	$	2,325,000	$	2,458,688

								5,717,807

Semiconductors & Semiconductor Equipment: 0.45%
Micron Technology Incorporated 144A		5.25		8-1-2023		375,000		391,289
Micron Technology Incorporated 144A		5.25		1-15-2024		700,000		729,532
Micron Technology Incorporated		5.50		2-1-2025		256,000		271,601
Micron Technology Incorporated		5.88		2-15-2022		850,000		884,000

								2,276,422

Software: 0.33%
CA Incorporated		5.38		12-1-2019		750,000		804,550
SS&C Technologies Incorporated		5.88		7-15-2023		600,000		637,500
Symantec Corporation 144A		5.00		4-15-2025		200,000		209,500

								1,651,550

Technology Hardware, Storage & Peripherals: 2.27%
Diamond 1 Finance Corporation 144A		5.88		6-15-2021		1,000,000		1,048,750
Diamond 1 Finance Corporation 144A		7.13		6-15-2024		4,525,000		5,035,728
Hewlett-Packard Company		4.05		9-15-2022		750,000		791,345
NCR Corporation		5.88		12-15-2021		5,000		5,213
NCR Corporation		6.38		12-15-2023		4,400,000		4,697,000

								11,578,036

Materials: 1.24%

Chemicals: 0.23%
Dow Chemical Company		4.13		11-15-2021		750,000		805,482
Valvoline Incorporated 144A		5.50		7-15-2024		375,000		397,500

								1,202,982

Containers & Packaging: 1.01%
Ball Corporation		5.25		7-1-2025		190,000		209,000
Berry Plastics Corporation		5.13		7-15-2023		350,000		364,875
Berry Plastics Corporation		6.00		10-15-2022		215,000		228,438
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		35,000		41,038
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		600,000		601,500
Owens-Brockway Glass Container Incorporated 144A		5.88		8-15-2023		325,000		360,141
Owens-Illinois Incorporated 144A		6.38		8-15-2025		2,950,000		3,326,125

								5,131,117

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

Real Estate: 4.52%

Equity REITs: 4.52%
Alexandria Real Estate Company		4.60		4-1-2022		650,000		696,158
American Tower Corporation		5.90		11-1-2021		650,000		732,247
DDR Corporation		4.70		6-1-2027		600,000		608,805
DuPont Fabros Technology Incorporated LP		5.63		6-15-2023		1,000,000		1,067,810
DuPont Fabros Technology Incorporated LP		5.88		9-15-2021		4,655,000		4,824,326
Equinix Incorporated		5.38		5-15-2027		425,000		459,531
Equinix Incorporated		5.88		1-15-2026		425,000		465,375
ESH Hospitality Incorporated 144A		5.25		5-1-2025		1,550,000		1,619,750
Essex Portfolio LP		3.63		8-15-2022		750,000		773,784
Health Care REIT Incorporated		5.25		1-15-2022		650,000		717,753


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


Security name	Interest rate			Maturity date	Principal		Value
Equity REITs (continued)
Iron Mountain Incorporated 144A		5.38	%	6-1-2026	$	150,000	$	159,375
Iron Mountain Incorporated 144A		6.00		10-1-2020		230,000		238,050
Iron Mountain Incorporated		6.00		8-15-2023		2,960,000		3,130,200
Omega HealthCare Investors Incorporated		4.50		4-1-2027		600,000		602,719
Sabra Health Care Incorporated		5.38		6-1-2023		900,000		931,500
Sabra Health Care Incorporated		5.50		2-1-2021		1,100,000		1,142,081
SBA Communications Corporation		4.88		7-15-2022		640,000		664,563
The Geo Group Incorporated		5.13		4-1-2023		800,000		808,000
The Geo Group Incorporated		5.88		1-15-2022		1,565,000		1,625,644
The Geo Group Incorporated		5.88		10-15-2024		840,000		872,550
The Geo Group Incorporated		6.00		4-15-2026		184,000		191,570
Ventas Realty LP		4.25		3-1-2022		650,000		689,428

								23,021,219

Telecommunication Services: 3.84%

Diversified Telecommunication Services: 1.31%
AT&T Incorporated		3.80		3-15-2022		750,000		784,797
Frontier Communications Corporation		8.13		10-1-2018		845,000		881,969
GCI Incorporated		6.75		6-1-2021		1,000,000		1,031,250
Level 3 Financing Incorporated		5.13		5-1-2023		975,000		1,014,000
Level 3 Financing Incorporated		5.25		3-15-2026		650,000		690,625
Level 3 Financing Incorporated		5.38		8-15-2022		300,000		308,250
Level 3 Financing Incorporated		5.38		1-15-2024		700,000		736,750
Level 3 Financing Incorporated		5.38		5-1-2025		625,000		664,063
Level 3 Financing Incorporated		5.63		2-1-2023		350,000		364,875
Level 3 Financing Incorporated		6.13		1-15-2021		175,000		179,813

								6,656,392

Wireless Telecommunication Services: 2.53%
Crown Castle Towers LLC 144A		6.11		1-15-2040		750,000		807,097
SBA Communications Corporation		4.88		9-1-2024		500,000		519,375
Sprint Capital Corporation		6.88		11-15-2028		5,500,000		5,995,000
Sprint Capital Corporation		8.75		3-15-2032		625,000		775,000
Sprint Communications Incorporated		7.00		8-15-2020		225,000		245,813
T-Mobile USA Incorporated		4.00		4-15-2022		650,000		677,625
T-Mobile USA Incorporated		5.13		4-15-2025		425,000		450,500
T-Mobile USA Incorporated		5.38		4-15-2027		225,000		243,000
T-Mobile USA Incorporated		6.00		3-1-2023		300,000		317,529
T-Mobile USA Incorporated		6.13		1-15-2022		85,000		89,038
T-Mobile USA Incorporated		6.38		3-1-2025		825,000		887,906
T-Mobile USA Incorporated		6.50		1-15-2024		80,000		86,174
T-Mobile USA Incorporated		6.63		4-1-2023		655,000		692,663
T-Mobile USA Incorporated		6.84		4-28-2023		1,060,000		1,124,925

								12,911,645

Utilities: 4.16%

Electric Utilities: 0.16%

Great Plains Energy Incorporated		4.85		6-1-2021		750,000		800,168

Gas Utilities: 0.20%

AmeriGas Partners LP		5.75		5-20-2027		1,000,000		1,010,000

Independent Power & Renewable Electricity Producers: 3.53%
Calpine Corporation 144A		6.00		1-15-2022		165,000		170,156
NSG Holdings LLC 144A		7.75		12-15-2025		4,956,547		5,340,640
Pattern Energy Group Incorporated 144A		5.88		2-1-2024		4,625,000		4,879,375
TerraForm Power Operating LLC 144A		6.38		2-1-2023		5,425,000		5,642,000


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


Security name	Interest rate			Maturity date	Principal		Value
Independent Power & Renewable Electricity Producers (continued)
TerraForm Power Operating LLC 144A		6.63	%	6-15-2025	$	1,850,000	$	1,970,250

								18,002,421


Multi-Utilities: 0.27%
Ameren Illinois Company		9.75		11-15-2018		500,000		549,096
CMS Energy Corporation		5.05		3-15-2022		750,000		824,300
								1,373,396

Total Corporate Bonds and Notes (Cost $344,481,968)								360,673,812

Foreign Corporate Bonds and Notes @: 2.16%

Consumer Discretionary: 0.05%

Internet & Direct Marketing Retail: 0.05%
Priceline Group Incorporated (EUR)		2.38		9-23-2024		200,000		254,733

Consumer Staples: 0.19%

Food Products: 0.19%
BRF SA 144A (BRL)		7.75		5-22-2018		3,100,000		969,263

Energy: 0.28%

Oil, Gas & Consumable Fuels: 0.28%
Petroleos Mexicanos 144A (MXN)		7.19		9-12-2024		28,200,000		1,423,583

Financials: 1.19%

Banks: 1.13%
Eurofima (AUD)		6.25		12-28-2018		2,450,000		2,070,724
European Investment Bank (ZAR)		9.00		3-31-2021		17,400,000		1,381,306
KfW (AUD)		5.00		3-19-2024		1,300,000		1,171,689
Landwirtschaftliche Rentenbank (ZAR)		8.25		5-23-2022		15,000,000		1,161,301

								5,785,020

Diversified Financial Services: 0.06%
AA Bond Company Limited (GBP)		4.25		7-31-2043		200,000		281,545

Information Technology: 0.04%

Semiconductors & Semiconductor Equipment: 0.04%
ASML Holding NV (EUR)		1.38		7-7-2026		175,000		209,503

Materials: 0.06%

Chemicals: 0.06%
Albemarle Corporation (EUR)		1.88		12-8-2021		246,000		305,402

Telecommunication Services: 0.35%

Diversified Telecommunication Services: 0.04%
Verizon Communications Incorporated (EUR)		3.25		2-17-2026		150,000		202,575

Wireless Telecommunication Services: 0.31%
America Movil SAB de CV (MXN)		7.13		12-9-2024		28,850,000		1,563,839

Total Foreign Corporate Bonds and Notes (Cost $13,589,785)								10,995,463


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


Security name	Interest rate			Maturity date	Principal		Value
Foreign Government Bonds @: 25.11%
Colombia (COP)		7.00	%	9-11-2019		18,500,000,000	$	6,365,069
Colombia (COP)		7.00		5-4-2022		18,650,000,000		6,430,911
Colombia (COP)		7.50		8-26-2026		22,725,000,000		7,956,488
Colombia (COP)		7.75		4-14-2021		5,250,000,000		1,877,778
Hungary (HUF)		6.75		11-24-2017		1,305,000,000		5,186,027
India (INR)		7.80		4-11-2021		435,000,000		7,069,023
Indonesia (IDR)		7.88		4-15-2019		133,640,000,000		10,257,853
Indonesia (IDR)		8.38		9-15-2026		110,000,000,000		8,928,625
Malaysia (MYR)		4.18		7-15-2024		19,850,000		4,686,672
Malaysia (MYR)		4.23		6-30-2031		51,300,000		11,718,255
Mexico (MXN)		5.75		3-5-2026		72,000,000		3,756,012
Mexico (MXN)		8.00		11-7-2047		217,500,000		13,397,096
Mexico (MXN)		10.00		12-5-2024		14,100,000		937,914
Mexico (MXN)		10.00		12-5-2024		62,120,000		4,132,145
New Zealand (NZD)		4.50		4-15-2027		8,250,000		6,970,026
Queensland Treasury (AUD)		5.75		7-22-2024		4,100,000		3,898,729
Republic of South Africa (ZAR)		7.75		2-28-2023		103,000,000		7,743,795
Republic of South Africa (ZAR)		10.50		12-21-2026		153,500,000		13,039,920
State of New South Wales Australia (AUD)		5.00		8-20-2024		3,900,000		3,593,844

Total Foreign Government Bonds (Cost $138,485,863)								127,946,182

Loans: 18.62%

Consumer Discretionary: 4.51%

Auto Components: 0.58%
Allison Transmission Incorporated ±		3.24		9-23-2022	$	1,890,463		1,902,637
Federal-Mogul Corporation ±		4.98		4-15-2021		1,036,583		1,043,922

								2,946,559

Distributors: 0.48%
Spin Holdco Incorporated ±		4.98		11-14-2022		2,472,140		2,472,140

Food & Staples Retailing: 0.08%
TKC Holdings Incorporated ±		5.48		2-1-2023		399,000		401,370

Hotels, Restaurants & Leisure: 1.34%
CCM Merger Incorporated ±		3.98		8-8-2021		737,969		739,998
Four Seasons Holdings Incorporated ±		3.73		11-30-2023		906,107		913,183
La Quinta Intermediate Holdings LLC ±		4.05		4-14-2021		738,693		744,234
Montreign Operating Company ±		9.48		12-7-2022		4,375,000		4,420,106

								6,817,521

Household Products: 0.38%
Anchor Glass Container Corporation ±		4.01		12-7-2023		597,000		599,878
Anchor Glass Container Corporation ±		8.97		12-7-2024		1,300,000		1,316,250

								1,916,128

Media: 1.65%
Altice US Finance I Corporation ±		3.48		7-28-2025		717,786		715,633
CBS Radio Incorporated ±		4.73		10-17-2023		1,881,182		1,885,885
Charter Communications Operating LLC ±		3.48		1-15-2024		908,500		914,560
Entercom Radio LLC ±		4.71		11-1-2023		1,073,438		1,076,454
Learfield Communications Incorporated ±		4.49		12-1-2023		3,482,500		3,517,325
Mission Broadcasting Incorporated ±		3.74		1-17-2024		31,894		32,159
Nexstar Broadcasting Group Incorporated ±		3.74		1-17-2024		260,890		263,063

								8,405,079


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


Consumer Staples: 0.17%

Food Products: 0.17%
B&G Foods Incorporated ±	3.48	%	11-2-2022	$	640,110	$	643,509
Prestige Brands Incorporated ±	3.98		1-26-2024		215,719		216,768

							860,277

Energy: 1.62%

Energy Equipment & Services: 0.89%
Hummel Station LLC ±	7.23		10-27-2022		4,929,434		4,535,079

Oil, Gas & Consumable Fuels: 0.73%
Chesapeake Energy Corporation ±	8.69		8-23-2021		450,000		482,738
Ultra Resources Incorporated ±	4.22		4-12-2024		1,900,000		1,907,125
Veresen Midstream LP ±	4.73		3-31-2022		1,311,582		1,318,966

							3,708,829

Financials: 1.84%

Capital Markets: 0.22%
Neptune Finco Corporation ±	3.48		7-17-2025		458,227		457,196
Russell Investments US Institutional Holdco Incorporated ±	6.97		6-1-2023		422,864		427,888
VFH Parent LLC ±	4.98		12-30-2021		250,000		251,979

							1,137,063

Consumer Finance: 0.03%
KAR Auction Services Incorporated ±	3.81		3-9-2023		155,338		156,243

Diversified Financial Services: 0.93%
American Beacon Advisors Incorporated ±	5.55		4-30-2022		2,465,984		2,475,231
American Beacon Advisors Incorporated ±(a)	10.06		3-3-2023		440,000		440,000
Ipreo Holdings LLC ±	4.55		8-6-2021		141,034		140,065
LPL Holdings Incorporated ±	3.82		3-11-2024		1,197,000		1,204,481
Nielsen Finance LLC ±	3.22		10-4-2023		471,443		471,981

							4,731,758

Insurance: 0.66%
Alliant Holdings I LLC ±	4.56		8-12-2022		1,392,906		1,396,736
AmWINS Group Incorporated ±	4.17		1-25-2024		373,125		374,110
Hub International Limited ±	4.42		10-2-2020		691,398		695,933
Solera Holdings Incorporated ±	4.51		3-3-2023		864,063		869,515

							3,336,294

Health Care: 2.07%

Health Care Equipment & Supplies: 0.37%
DJO Finance LLC ±	4.48		6-8-2020		558,600		556,159
Kinetic Concepts Incorporated ±	4.55		2-2-2024		1,336,239		1,339,993

							1,896,152

Health Care Providers & Services: 1.23%
Community Health Systems Incorporated ±	4.21		1-27-2021		669,237		667,938
MPH Acquisition Holdings LLC ±	4.30		6-7-2023		500,072		503,573
Press Ganey Holdings Incorporated ±(a)	4.48		10-21-2023		1,492,500		1,500,903
Press Ganey Holdings Incorporated ±(a)	8.48		10-21-2024		1,150,000		1,174,438
Surgery Center Holdings Incorporated ±	4.98		11-3-2020		1,096,887		1,104,434


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


Security name	Interest rate			Maturity date	Principal		Value
Health Care Providers & Services (continued)
TeamHealth Incorporated ±		3.98	%	2-6-2024	$	748,125	$	745,088
Vizient Incorporated ±		4.73		2-13-2023		571,904		577,623

								6,273,997

Health Care Technology: 0.15%
Alere Incorporated ±		4.49		6-18-2022		100,462		100,571
Change Healthcare Holdings Incorporated ±		3.98		3-1-2024		667,364		671,035

								771,606

Life Sciences Tools & Services: 0.19%
INC Research LLC ±%%<		0.00		6-27-2024		475,000		478,363
Inventiv Health Incorporated ±		4.95		11-9-2023		472,625		472,880

								951,243

Pharmaceuticals: 0.13%
Endo Finance LLC ±		5.50		4-29-2024		296,688		301,138
Valeant Pharmaceuticals International Incorporated ±		5.98		4-1-2022		353,117		359,657

								660,795

Industrials: 2.93%

Aerospace & Defense: 0.49%
TransDigm Incorporated ±		4.29		2-28-2020		2,473,574		2,481,935

Commercial Services & Supplies: 2.31%
Advanced Disposal Services Incorporated ±(i)		3.94		11-10-2023		1,223,217		1,232,587
Advantage Sales & Marketing LLC ±		7.80		7-25-2022		1,250,000		1,181,250
Avantor Performance Materials Incorporated ±		5.24		3-10-2024		1,703,725		1,703,725
Casella Waste Systems Incorporated ±		3.98		10-17-2023		1,965,125		1,979,863
Columbus McKinnon Corporation ±		4.30		1-31-2024		946,938		955,224
Gates Global Limited ±		4.55		4-1-2024		610,770		615,064
GFL Environmental Incorporated ±		4.05		9-29-2023		173,688		174,846
McJunkin Red Man Corporation ±		5.23		11-8-2019		674,136		679,192
Sedgwick Claims Management Services Incorporated ±		3.98		3-1-2021		521,524		522,364
USI Incorporated ±		4.18		5-16-2024		225,000		224,298
WASH Multifamily Laundry Systems LLC ±		4.48		5-14-2022		188,403		188,403
WASH Multifamily Laundry Systems LLC ±		4.48		5-14-2022		1,075,794		1,075,794
WASH Multifamily Laundry Systems LLC ±		8.23		5-12-2023		17,885		17,706
WASH Multifamily Laundry Systems LLC ±(i)		8.23		5-14-2023		102,115		101,094
Waste Industries USA Incorporated ±		3.98		2-27-2020		1,127,033		1,131,608

								11,783,018

Machinery: 0.12%
Onex Wizard Acquisition Company ±		4.23		3-13-2022		608,031		612,020

Transportation Infrastructure: 0.01%
OSG Bulk Ships Incorporated ±		5.43		8-5-2019		71,190		67,541

Information Technology: 2.19%

Electronic Equipment, Instruments & Components: 0.49%
Dell Incorporated ±		3.74		9-7-2023		2,481,281		2,495,325

Internet Software & Services: 1.53%
Ancestry.com Incorporated ±		4.48		10-19-2023		2,974,950		2,998,184
Ancestry.com Incorporated ±		9.48		10-19-2024		2,992,500		3,052,350


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


Security name	Interest rate			Maturity date		Principal		Value
Internet Software & Services (continued)
Applied Systems Incorporated ±		4.55	%		1-25-2021	$	472,541	$	476,439
Black Knight InfoServ LLC ±(a)		3.50			5-27-2022		490,616		494,295
Infor US Incorporated ±		4.05			2-1-2022		515,366		515,459
Sophia Holding Finance LP ±		4.55			9-30-2022		146,971		147,216
Zayo Group LLC ±		3.48			1-19-2024		107,244		107,635

									7,791,578

Semiconductors & Semiconductor Equipment: 0.07%
Micron Technology Incorporated ±		3.80			4-26-2022		346,500		349,480

Software: 0.10%
SS&C Technologies Incorporated ±		3.48			7-8-2022		509,576		512,364
SS&C Technologies Incorporated ±		3.48			7-8-2022		28,859		29,017

									541,381

Materials: 0.57%

Containers & Packaging: 0.57%
Berry Plastics Corporation ±		3.73			10-1-2022		412,327		414,079
Reynolds Group Holdings Incorporated ±		4.23			2-5-2023		2,481,281		2,491,554

									2,905,633

Real Estate: 1.06%

Equity REITs: 0.62%
ESH Hospitality Incorporated ±		3.73			8-30-2023		1,290,266		1,296,511
MGM Growth Properties LLC ±		3.48			4-25-2023		320,811		321,975
The Geo Group Incorporated ±		3.48			3-22-2024		1,552,715		1,553,694

									3,172,180

Real Estate Management & Development: 0.44%
Capital Automotive LP ±		4.24			3-24-2024		1,408,665		1,421,695
Capital Automotive LP ±		7.24			3-24-2025		815,000		827,738

									2,249,433

Telecommunication Services: 1.55%

Diversified Telecommunication Services: 1.19%
Frontier Communications Corporation ±		4.98			6-15-2024		2,600,000		2,494,908
Level 3 Financing Incorporated ±		3.48			2-22-2024		555,420		557,592
Sprint Communications Incorporated ±		3.75			2-2-2024		448,875		450,334
Telesat Canada ±		4.30			11-17-2023		2,519,067		2,543,200

									6,046,034

Wireless Telecommunication Services: 0.36%
LTS Buyer LLC ±		4.55			4-13-2020		1,829,314		1,835,716

Utilities: 0.11%

Independent Power & Renewable Electricity Producers: 0.11%
Vistra Energy Corporation ±		4.48			12-14-2023		572,125		576,284

Total Loans (Cost $94,532,614)									94,885,691


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


Security name	Interest rate			Maturity date	Principal		Value
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	$	44,869

Total Municipal Obligations (Cost $45,000)								44,869

Non-Agency Mortgage-Backed Securities: 4.44%
Argent Securities Incorporated Series 2004-W5 Class AV3B ±		2.13		4-25-2034		55,168		53,943
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18		3-25-2033		210,194		209,669
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±		5.72		7-10-2044		1,053,875		754,238
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48		1-15-2049		185,178		184,934
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±		6.51		2-10-2051		550,000		557,949
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50		9-25-2035		243,605		254,869
Banc of America Mortgage Securities Series 2003 Class 1A1 ±		3.62		4-25-2033		266,534		251,352
Bear Stearns Asset Backed Securities Series 2002-2 Class A1 ±		1.89		10-25-2032		222,265		218,042
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±		5.92		6-11-2050		300,841		301,029
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AMFL 144A±		1.82		6-11-2050		493,005		493,017
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±		6.08		6-11-2050		100,000		100,882
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AMA ±		6.09		6-11-2050		715,000		721,355
Centex Home Equity Series 2002-A Class AF6		5.54		1-25-2032		40,020		39,959
Centex Home Equity Series 2002-D Class AF6 ±		4.66		12-25-2032		11,962		12,056
Centex Home Equity Series 2004-B Class AF6		4.69		3-25-2034		150,057		153,844
CFCRE Commercial Mortgage Trust Series 2015-RUM Class A 144A±		2.86		7-15-2030		480,000		480,902
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±		4.85		9-10-2045		1,000,000		1,054,950
Citigroup Commercial Mortgage Trust Series 2015 Class A 144A±		2.31		9-15-2027		595,000		595,367
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A 144A±		1.00		7-15-2022		1,000,000		1,000,000
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±		1.60		12-25-2033		32,664		32,460
Commercial Mortgage Trust Series 2012-CR2 Class C ±		4.84		8-15-2045		1,000,000		1,044,307
Commercial Mortgage Trust Series 2012-LC4 Class A4		3.29		12-10-2044		205,000		212,642
Commercial Mortgage Trust Series 2012-LC4 Class C ±		5.59		12-10-2044		500,000		536,695
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.27		2-25-2034		93,305		95,198
Countrywide Home Loans Series 2003-48 Class 2A2 ±		3.26		10-25-2033		72,557		71,110
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±		2.65		9-25-2032		550,482		516,858
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		3.70		6-25-2033		127,646		127,485
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±		3.36		3-25-2033		27,708		27,332
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±		1.89		4-25-2036		51,891		52,038
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62		7-25-2034		358,275		358,532
Global Mortgage Securitization Limited Series 2004-A Class A2 144A±		1.55		11-25-2032		113,997		106,589
Great Wolf Trust Series 2015 Class A 144A±		2.61		5-15-2034		1,015,000		1,015,626
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±		1.53		8-10-2043		5,187,888		175,151
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±		2.23		5-10-2045		3,494,951		242,899
GS Mortgage Securities Trust Series 2014 Class C 144A		3.79		1-10-2031		1,000,000		1,005,052
GS Mortgage Securities Trust Series 2014-GSFLC Class C 144A±		3.48		7-15-2031		1,000,000		993,957
GSAA Home Equity Trust Series 2004-5 Class AF5		4.51		6-25-2034		3,213		3,226
GSCCRE Commercial Mortgage Trust Series 2015-HULA Class C 144A±		3.91		8-15-2032		1,000,000		1,003,750
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		1.88		4-25-2035		5,528		5,532
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 144A±		1.53		3-25-2035		90,095		89,219


Portfolio of investments — July 31, 2017 (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 Corporation Series 2013-C17 Class B ±		4.89	%	1-15-2047	$	50,000	$	53,774
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±		5.47		6-12-2047		289,116		288,854
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL ±		1.28		6-12-2047		247,813		245,174
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±		5.46		1-15-2049		174,279		174,127
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-FL7 Class A 144A±		2.48		5-15-2028		145,756		145,675
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		3.66		7-25-2034		68,602		69,160
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		3.49		7-25-2034		61,439		60,338
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		3.32		6-25-2035		210,709		214,446
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±		6.00		2-27-2037		14,000		14,110
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±		6.00		2-27-2037		37,418		37,369
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±		3.33		12-25-2033		403,529		402,081
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±		3.50		1-25-2034		12,059		11,722
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±		3.19		11-21-2034		18,693		19,138
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50		1-25-2020		23,916		24,405
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70		9-12-2049		161,653		161,549
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3		5.25		8-25-2036		33,487		34,019
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±		6.02		6-12-2050		118,583		118,423
Mesa Trust Asset Backed Certificates Series 2001-5 Class A 144A±		2.02		12-25-2031		13,780		13,572
Mid State Trust Series 11 Class A1		4.86		7-15-2038		207,078		214,759
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		2.09		1-25-2029		79,367		74,977
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±		1.51		8-15-2045		4,249,327		249,291
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C11 Class A4 ±		4.17		8-15-2046		569,000		610,600
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		2.28		12-27-2033		438,507		427,617
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±		5.42		3-15-2045		900,000		958,537
Navient SLM Student Loan Series 2005-B Class A3 ±		1.52		12-15-2023		89,800		89,782
New Century Home Equity Loan Trust Series 2004-3 Class M1 ±		2.16		11-25-2034		1,165,049		1,107,908
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ ±		1.81		3-25-2035		58,472		58,500
Northstar Education Finance Incorporated Series 2004-2 Class A3 ±		1.21		7-30-2018		17,535		17,535
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		3.43		5-25-2035		24,523		23,852
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±		3.88		12-26-2035		10,341		10,372
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88		2-25-2035		177,633		177,486
Residential Funding Mortgage Securities Trust Series 03-S12 Class 2A1		4.00		12-25-2032		50,723		50,814
Saxon Asset Securities Trust Series 2002-1 Class AF5		6.10		12-25-2030		130,835		133,466
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		442,352		446,925
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		1.99		4-20-2033		14,774		14,026
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±		3.42		3-25-2034		48,270		47,788
Structured Asset Securities Corporation Series 1998-2 Class A ±		1.75		2-25-2028		189,860		187,665
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		1.83		10-25-2027		54,671		53,693
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		2.37		11-25-2033		173,407		165,528
Vendee Mortgage Trust Series 2003-2 Class IO ±(c)		0.71		5-15-2033		4,473,678		116,085
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50		7-25-2034		140,488		150,652

Total Non-Agency Mortgage-Backed Securities (Cost $22,650,392)								22,629,809


				Expiration date	Shares
Rights: 0.06%

Utilities: 0.06%
Independent Power & Renewable Electricity Producers: 0.06%
Vistra Energy Corporation †(i)				12-31-2046		327,375		327,375

Total Rights (Cost $360,113)								327,375


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


Security name	Interest rate			Maturity date	Principal		Value
Yankee Corporate Bonds and Notes: 9.26%

Consumer Discretionary: 0.30%

Media: 0.30%
Grupo Televisa SAB		6.00	%	5-15-2018	$	750,000	$	773,454
WPP Finance 2010		3.63		9-7-2022		750,000		781,363

								1,554,817

Consumer Staples: 0.31%

Beverages: 0.16%
Pernod Ricard SA 144A		4.45		1-15-2022		760,000		820,389

Tobacco: 0.15%
BAT International Finance plc 144A		3.25		6-7-2022		750,000		769,266

Energy: 2.01%

Energy Equipment & Services: 0.29%
Ensco plc		5.75		10-1-2044		2,070,000		1,381,725
Trinidad Drilling Limited 144A		6.63		2-15-2025		75,000		70,688

								1,452,413

Oil, Gas & Consumable Fuels: 1.72%
Baytex Energy Corporation 144A		5.13		6-1-2021		2,114,000		1,929,025
Baytex Energy Corporation 144A		5.63		6-1-2024		850,000		743,750
Griffin Coal Mining Company Limited 144A(a)(i)(s)		9.50		12-1-2016		1,685,411		6,742
Griffin Coal Mining Company Limited (a)(i)(s)		9.50		12-1-2016		137,792		551
Teekay Corporation		8.50		1-15-2020		5,625,000		5,653,125
Woodside Finance Limited 144A		8.75		3-1-2019		405,000		444,961

								8,778,154

Financials: 0.99%

Banks: 0.76%
ABN AMRO Bank NV 144A		4.80		4-18-2026		750,000		804,974
Banco del Estado de Chile 144A		3.88		2-8-2022		650,000		680,829
Corporación Andina de Fomento		4.38		6-15-2022		958,000		1,039,583
Nielsen Holding and Finance BV 144A		5.00		2-1-2025		875,000		903,438
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		415,000		428,488
Preferred Term Securities XII Limited (a)(i)(s)		1.00		12-24-2033		635,000		0

								3,857,312

Diversified Financial Services: 0.23%
GE Capital International Funding Company		2.34		11-15-2020		527,000		532,615
Tyco Electronics Group SA		3.50		2-3-2022		625,000		653,360

								1,185,975

Health Care: 1.93%

Pharmaceuticals: 1.93%
Valeant Pharmaceuticals International Incorporated 144A		5.50		3-1-2023		2,200,000		1,875,500
Valeant Pharmaceuticals International Incorporated 144A		5.63		12-1-2021		700,000		633,500
Valeant Pharmaceuticals International Incorporated 144A		5.88		5-15-2023		770,000		662,200
Valeant Pharmaceuticals International Incorporated 144A		6.13		4-15-2025		4,575,000		3,894,469
Valeant Pharmaceuticals International Incorporated 144A		6.38		10-15-2020		1,425,000		1,385,813
Valeant Pharmaceuticals International Incorporated 144A		6.50		3-15-2022		325,000		342,875


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


Security name	Interest rate			Maturity date	Principal		Value
Pharmaceuticals (continued)
Valeant Pharmaceuticals International Incorporated 144A		6.75	%	8-15-2021	$	425,000	$	401,625
Valeant Pharmaceuticals International Incorporated 144A		7.00		3-15-2024		575,000		612,375
Valeant Pharmaceuticals International Incorporated 144A		7.50		7-15-2021		10,000		9,713

								9,818,070

Industrials: 0.89%

Building Products: 0.05%
Allegion plc		5.88		9-15-2023		210,000		226,361

Commercial Services & Supplies: 0.51%
GFL Environmental Incorporated 144A		9.88		2-1-2021		500,000		541,250
Ritchie Brothers Auctioneers Incorporated 144A		5.38		1-15-2025		1,975,000		2,072,052

								2,613,302

Machinery: 0.05%
Sensata Technologies BV 144A		5.00		10-1-2025		235,000		247,338

Professional Services: 0.12%
IHS Markit Limited 144A		4.75		2-15-2025		600,000		631,500

Road & Rail: 0.16%
Canadian Pacific Railway Company		4.50		1-15-2022		750,000		804,250

Materials: 0.96%

Containers & Packaging: 0.59%
Ardagh Packaging Finance plc 144A		4.25		9-15-2022		375,000		385,313
Ardagh Packaging Finance plc 144A		6.00		2-15-2025		1,700,000		1,815,804
Ardagh Packaging Finance plc 144A		7.25		5-15-2024		725,000		800,219

								3,001,336

Metals & Mining: 0.37%
ArcelorMittal SA		6.13		6-1-2025		275,000		313,844
Glencore Finance Canada Limited 144A		4.25		10-25-2022		750,000		790,778
Vale Overseas Limited		4.38		1-11-2022		750,000		774,000

								1,878,622

Telecommunication Services: 1.74%

Diversified Telecommunication Services: 1.62%
Intelsat Jackson Holdings SA		5.50	%	8-1-2023	$	5,775,000	$	4,980,938
Intelsat Luxembourg SA		7.75		6-1-2021		2,220,000		1,420,800
Intelsat Luxembourg SA		8.13		6-1-2023		2,340,000		1,448,460
Virgin Media Finance plc 144A		6.38		4-15-2023		365,000		383,250

								8,233,448

Wireless Telecommunication Services: 0.12%
Globo Communicacoes Participacoes SA 144A		4.88		4-11-2022		595,000		615,825

Utilities: 0.13%

Electric Utilities: 0.13%
Comision Federal de Electricidad 144A		4.88		5-26-2021		650,000		693,063

Total Yankee Corporate Bonds and Notes (Cost $49,155,776)								47,181,441


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


Security name	Yield			Shares		Value
Short-Term Investments: 3.14%

Investment Companies: 3.14%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.89	%		16,029,283	$	16,029,283

Total Short-Term Investments (Cost $16,029,283)							16,029,283

Total investments in securities (Cost $695,825,371)*		135.88	%				692,448,083
Other assets and liabilities, net		(35.88	)				(182,850,735	)

Total net assets		100.00	%			$	509,597,348

±	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

%%	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.

(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 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.

@	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 unfunded loans.

*	Cost for federal income tax purposes is $700,353,994 and unrealized gains (losses) consists of:


Grossunrealized gains	$	25,982,170
Grossunrealized losses		(33,888,081	)

Net unrealized losses	$	(7,905,911	)

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
LLC		Limited liability company
LP		Limited partnership
MXN		Mexican peso
MYR		Malaysian ringgit
NZD		New Zealand dollar
plc		Public limited company
REIT		Real estate investment trust
ZAR		South African rand

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

Notes to Portfolio of investments — July 31, 2017 (unaudited)

Securities valuation

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

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

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

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

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

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

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

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates 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 July 31, 2017, the Fund had unfunded loan commitments of $3,699,406.

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 July 31, 2017:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	8,901,428	$	0	$	8,901,428
Asset-backed securities		0		1,224,218		0		1,224,218
Common stocks
Energy		0		216,885		0		216,885
Materials		811		0		0		811
Utilities		1,390,816		0		0		1,390,816
Corporate bonds and notes		0		360,673,812		0		360,673,812
Foreign corporate bonds and notes		0		10,995,463		0		10,995,463
Foreign government bonds		0		127,946,182		0		127,946,182
Loans		0		74,381,213		20,504,478		94,885,691
Municipal obligations		0		44,869		0		44,869
Non-agency mortgage-backed securities		0		22,629,809		0		22,629,809
Rights
Utilities		0		327,375		0		327,375
Yankee corporate bonds and notes		0		47,174,148		7,293		47,181,441
Short-term investments
Investment companies		16,029,283		0		0		16,029,283

Total assets	$	17,420,910	$	654,515,402	$	20,511,771	$	692,448,083

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

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


	Loans		Yankee corporate bonds and notes			Total
Balance as of October 31, 2016	$	5,626,538	$	7,293		$	5,633,831
Accrued discounts (premiums)		14,079		17,712			31,791
Realized gains (losses)		156,944		0			156,944
Change in unrealized gains (losses)		90,217		(17,712	)		72,505


	Loans			Yankee corporate bonds and notes			Total
Purchases		20,037,816			0			20,037,816
Sales		(11,821,288	)		0			(11,821,288	)
Transfers into Level 3		7,504,606			0			7,504,606
Transfers out of Level 3		(1,104,434	)		0			(1,104,434	)

Balance as of July 31, 2017	$	20,504,478		$	7,293		$	20,511,771

Change in unrealized gains (losses) relating to securities still held at July 31, 2017	$	81,345		$	(17,712	)	$	63,633

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

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


ITEM 2. CONTROLS AND PROCEDURES

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

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

SIGNATURES

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


Wells Fargo Multi-Sector Income Fund

By:		/s/ Andrew Owen

		Andrew Owen
		President

Date: September 25, 2017

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


Wells Fargo Multi-Sector Income Fund

By:		/s/ Andrew Owen

		Andrew Owen
		President

Date: September 25, 2017

By:		/s/ Jeremy DePalma

		Jeremy DePalma
		Treasurer

Date: September 25, 2017