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, 2018

ITEM 1. INVESTMENTS


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


Security name	Interest rate			Maturity date	Principal		Value
Agency Securities : 1.74%
FHLMC (5 Year Treasury Constant Maturity +2.06%) ±		3.54	%	9-1-2032	$	915,162	$	945,108
FHLMC		8.50		7-1-2028		32,962		37,217
FHLMC Series 1383 (1 Year Treasury Constant Maturity +2.25%) ±		3.62		2-1-2037		197,379		207,649
FHLMC Series 196 Class A (1 Month LIBOR +0.80%) ±		2.72		12-15-2021		6,588		6,622
FHLMC Series 2011-K16 Class B 144A±±		4.60		11-25-2046		1,000,000		1,031,588
FHLMC Series 2012-K17 Class B 144A±±		4.34		12-25-2044		675,000		691,733
FHLMC Series 2012-K18 Class B 144A±±		4.26		1-25-2045		810,000		826,725
FHLMC Series 2012-K706 Class B 144A±±		4.02		11-25-2044		500,000		499,675
FHLMC Series 2012-K706 Class C 144A±±		4.02		11-25-2044		805,000		804,129
FHLMC Series 2012-K707 Class B 144A±±		3.88		1-25-2047		930,000		930,406
FHLMC Series 2012-K711 Class B 144A±±		3.56		8-25-2045		264,000		264,602
FHLMC Series 2013-K30 Class B 144A±±		3.56		6-25-2045		700,000		691,835
FHLMC Series 2390 Class FD (1 Month LIBOR +0.45%) ±		2.52		12-15-2031		17,415		17,495
FHLMC Series 2567 Class FH (1 Month LIBOR +0.40%) ±		2.47		2-15-2033		51,072		51,104
FHLMC Series K007 Class X1 ±±(c)		1.04		4-25-2020		764,802		10,700
FHLMC Series K016 Class X1 ±±(c)		1.51		10-25-2021		360,246		14,176
FHLMC Series K020 Class X1 ±±(c)		1.55		5-25-2022		6,358,094		277,910
FNMA (6 Month LIBOR +1.64%) ±		3.27		9-1-2037		53,761		55,579
FNMA		6.00		4-1-2033		59,460		60,880
FNMA		7.50		2-1-2030		22,177		22,292
FNMA		7.50		9-1-2030		28,789		28,939
FNMA Series 1996-46 Class FA (1 Month LIBOR +0.50%) ±		2.56		8-25-2021		2,904		2,906
FNMA Series 1997-20 Class IO ±±(c)		1.84		3-25-2027		475,473		10,928
FNMA Series 2001-25 Class Z		6.00		6-25-2031		88,280		94,227
FNMA Series 2001-35 Class F (1 Month LIBOR +0.60%) ±		2.66		7-25-2031		4,178		4,241
FNMA Series 2001-57 Class F (1 Month LIBOR +0.50%) ±		2.56		6-25-2031		4,206		4,229
FNMA Series 2002-77 Class FH (1 Month LIBOR +0.40%) ±		2.48		12-18-2032		31,773		31,793
FNMA Series 2002-97 Class FR (1 Month LIBOR +0.55%) ±		2.61		1-25-2033		7,321		7,415
FNMA Series G91-16 Class F (1 Month LIBOR +0.45%) ±		2.51		6-25-2021		4,323		4,339
FNMA Series G92-17 Class F (1 Month LIBOR +1.05%) ±		3.11		3-25-2022		19,123		19,340
GNMA		6.50		6-15-2028		21,382		23,486
Total Agency Securities (Cost $7,466,826)								7,679,268

Asset-Backed Securities : 0.96%
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18		3-25-2033		135,623		134,879
Bear Stearns Asset Backed Securities Series 2002-2 Class A1 (1 Month LIBOR +0.66%) ±		2.72		10-25-2032		157,508		158,010
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.20		2-25-2034		86,397		88,759
CVS Pass-Through Trust Series T		6.04		12-10-2028		473,461		503,523
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±±		4.62		7-25-2034		59,930		59,791
Five Guys Funding LLC Series 17-1A Class A2 144A		4.60		7-25-2047		992,500		992,144
Mesa Trust Asset Backed Certificates Series 2001-5 Class A (1 Month LIBOR +0.40%) ±144A		2.89		12-25-2031		11,645		11,479
MMAF Equipment Finance LLC Series 2017-AA Class A4 144A		2.41		8-16-2024		170,000		165,887
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2 (1 Month LIBOR +1.00%) ±		3.09		5-20-2030		507,206		511,620
Navient SLM Student Loan Series 2005-B Class A3 (3 Month LIBOR +0.27%) ±		2.61		12-15-2023		18,632		18,634
Saxon Asset Securities Trust Series 2002-1 Class AF5		5.96		12-25-2030		120,494		123,189
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		367,768		372,742
Structured Asset Securities Corporation Series 1998-2 Class A (1 Month LIBOR +0.52%) ±		2.58		2-25-2028		102,584		101,802
Structured Asset Securities Corporation Series 2002-9 Class A2 (1 Month LIBOR +0.60%) ±		2.66		10-25-2027		40,649		40,171
Student Loan Consolidation Center Series 2011-1 Class A (1 Month LIBOR +1.22%) ±144A		3.28		10-25-2027		441,371		446,163
World Financial Network Credit Card Master Trust Series 2016-C Class M		1.98		8-15-2023		500,000		492,370
Total Asset-Backed Securities (Cost $4,254,068)								4,221,163


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


Security name					Shares		Value
Common Stocks : 0.00%

Materials : 0.00%

Chemicals : 0.00%
LyondellBasell Industries NV Class A						9	$	997

Total Common Stocks (Cost $779)								997

	Interest rate			Maturity date	Principal
Corporate Bonds and Notes : 76.25%
Consumer Discretionary : 15.37%

Auto Components : 1.33%
Allison Transmission Incorporated 144A		4.75	%	10-1-2027	$	650,000		602,875
Allison Transmission Incorporated 144A		5.00		10-1-2024		2,250,000		2,210,625
Cooper Tire & Rubber Company		7.63		3-15-2027		1,710,000		1,898,100
Cooper Tire & Rubber Company		8.00		12-15-2019		600,000		634,200
Goodyear Tire & Rubber Company		8.75		8-15-2020		468,000		511,875
								5,857,675

Distributors : 0.27%
LKQ Corporation		4.75		5-15-2023		1,075,000		1,075,000
Spectrum Brands Incorporated		6.63		11-15-2022		125,000		128,750
								1,203,750

Diversified Consumer Services : 1.37%
Carriage Services Incorporated 144A		6.63		6-1-2026		575,000		588,656
Service Corporation International		4.63		12-15-2027		650,000		617,500
Service Corporation International		5.38		5-15-2024		100,000		101,250
Service Corporation International		7.50		4-1-2027		3,400,000		3,791,000
Service Corporation International		8.00		11-15-2021		850,000		943,500
								6,041,906

Hotels, Restaurants & Leisure : 1.38%
CCM Merger Incorporated 144A		6.00		3-15-2022		3,531,000		3,592,793
Hilton Domestic Operating Company Incorporated 144A		5.13		5-1-2026		425,000		425,000
Pinnacle Entertainment Incorporated		5.63		5-1-2024		325,000		340,438
Wyndham Hotels & Resorts Company 144A		5.38		4-15-2026		1,725,000		1,722,844
								6,081,075

Internet & Direct Marketing Retail : 0.18%
Expedia Incorporated		5.95		8-15-2020		750,000		785,404

Media : 8.06%
Altice US Finance I Corporation 144A		5.38		7-15-2023		1,395,000		1,407,206
Altice US Finance I Corporation 144A		5.50		5-15-2026		1,275,000		1,251,094
CCO Holdings LLC 144A		4.00		3-1-2023		100,000		95,500
CCO Holdings LLC 144A		5.00		2-1-2028		150,000		140,438
CCO Holdings LLC		5.13		2-15-2023		100,000		99,500
CCO Holdings LLC 144A		5.13		5-1-2027		450,000		429,750
CCO Holdings LLC		5.25		9-30-2022		1,250,000		1,262,500
CCO Holdings LLC 144A		5.38		5-1-2025		4,150,000		4,077,375
CCO Holdings LLC 144A		5.50		5-1-2026		215,000		211,238
CCO Holdings LLC		5.75		9-1-2023		50,000		50,625
CCO Holdings LLC 144A		5.75		2-15-2026		3,375,000		3,355,763
CCO Holdings LLC 144A		5.88		4-1-2024		1,250,000		1,271,875
Cequel Communications Holdings I LLC 144A		7.75		7-15-2025		2,030,000		2,139,113
Cinemark USA Incorporated		4.88		6-1-2023		375,000		369,488


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


Security name	Interest rate			Maturity date	Principal		Value
Media (continued)
CSC Holdings LLC 144A		5.38	%	2-1-2028	$	425,000	$	400,439
CSC Holdings LLC		8.63		2-15-2019		383,000		393,054
Dish Network Corporation		3.38		8-15-2026		325,000		295,248
EMI Music Publishing Group 144A		7.63		6-15-2024		1,425,000		1,533,656
Gray Television Incorporated 144A		5.13		10-15-2024		450,000		432,000
Gray Television Incorporated 144A		5.88		7-15-2026		3,875,000		3,787,813
Interpublic Group of Companies		4.00		3-15-2022		750,000		751,300
Lamar Media Corporation		5.38		1-15-2024		375,000		384,375
Live Nation Entertainment Incorporated 144A		4.88		11-1-2024		1,400,000		1,380,750
Live Nation Entertainment Incorporated 144A		5.63		3-15-2026		250,000		249,375
National CineMedia LLC		6.00		4-15-2022		1,950,000		1,979,250
Nexstar Broadcasting Group Incorporated 144A		5.63		8-1-2024		850,000		837,250
Nexstar Broadcasting Group Incorporated 144A		6.13		2-15-2022		950,000		965,438
Nielsen Finance LLC 144A		5.00		4-15-2022		75,000		72,891
Outfront Media Capital Corporation		5.63		2-15-2024		20,000		20,170
Outfront Media Capital Corporation		5.88		3-15-2025		775,000		781,781
Salem Media Group Incorporated 144A		6.75		6-1-2024		2,200,000		1,991,000
The E.W. Scripps Company 144A		5.13		5-15-2025		2,460,000		2,314,712
Time Warner Cable Incorporated		4.00		1-15-2022		750,000		758,138
								35,490,105

Multiline Retail : 0.14%
Macy’s Retail Holdings Incorporated		3.88		1-15-2022		600,000		596,592

Specialty Retail : 2.20%
Advance Auto Parts Incorporated		4.50		1-15-2022		600,000		613,278
Asbury Automotive Group Incorporated		6.00		12-15-2024		1,175,000		1,169,125
Group 1 Automotive Incorporated		5.00		6-1-2022		200,000		197,500
Group 1 Automotive Incorporated 144A		5.25		12-15-2023		1,500,000		1,462,500
Lithia Motors Incorporated 144A		5.25		8-1-2025		945,000		902,475
Penske Auto Group Incorporated		3.75		8-15-2020		540,000		533,250
Penske Auto Group Incorporated		5.38		12-1-2024		2,150,000		2,101,625
Penske Auto Group Incorporated		5.75		10-1-2022		1,155,000		1,179,278
Sonic Automotive Incorporated		5.00		5-15-2023		849,000		800,183
Sonic Automotive Incorporated		6.13		3-15-2027		775,000		724,625

								9,683,839
Textiles, Apparel & Luxury Goods : 0.44%
The William Carter Company		5.25		8-15-2021		600,000		607,710
Wolverine World Wide Incorporated 144A		5.00		9-1-2026		1,411,000		1,340,450
								1,948,160

Consumer Staples : 1.44%

Beverages : 0.28%
Anheuser-Busch InBev Finance Incorporated		3.75		1-15-2022		600,000		608,009
Cott Beverages Incorporated 144A		5.50		4-1-2025		675,000		649,688
								1,257,697

Food Products : 0.94%
B&G Foods Incorporated		4.63		6-1-2021		300,000		297,375
B&G Foods Incorporated		5.25		4-1-2025		1,050,000		1,008,000
Darling Ingredients Incorporated		5.38		1-15-2022		180,000		182,925
Kraft Foods Group Incorporated		3.50		6-6-2022		750,000		745,545
Lamb Weston Holdings Incorporated 144A		4.63		11-1-2024		175,000		171,500
Pilgrim’s Pride Corporation 144A		5.75		3-15-2025		1,305,000		1,247,906
Pilgrim’s Pride Corporation 144A		5.88		9-30-2027		150,000		139,875
Pinnacle Foods Incorporated		5.88		1-15-2024		75,000		78,844


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


Security name	Interest rate			Maturity date	Principal		Value
Food Products (continued)
Prestige Brands Incorporated 144A		6.38	%	3-1-2024	$	280,000	$	279,650
								4,151,620

Household Products : 0.06%
Central Garden & Pet Company		5.13		2-1-2028		225,000		210,375
Spectrum Brands Incorporated		5.75		7-15-2025		50,000		49,875
								260,250

Tobacco : 0.16%
Reynolds American Incorporated		6.88		5-1-2020		650,000		689,254

Energy : 19.57%

Energy Equipment & Services : 5.84%
Bristow Group Incorporated		6.25		10-15-2022		3,430,000		2,641,100
Bristow Group Incorporated 144A		8.75		3-1-2023		775,000		759,500
Diamond Offshore Drilling Incorporated		4.88		11-1-2043		1,325,000		954,000
Era Group Incorporated		7.75		12-15-2022		2,350,000		2,308,875
Hilcorp Energy Company 144A		5.00		12-1-2024		1,450,000		1,393,813
Hilcorp Energy Company 144A		5.75		10-1-2025		1,775,000		1,770,563
Hornbeck Offshore Services Incorporated		1.50		9-1-2019		4,750,000		4,239,375
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		150,000		109,875
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		1,325,000		1,053,375
NGPL PipeCo LLC 144A		4.38		8-15-2022		350,000		350,875
NGPL PipeCo LLC 144A		4.88		8-15-2027		550,000		549,313
NGPL PipeCo LLC 144A		7.77		12-15-2037		6,435,000		7,915,050
Oceaneering International Incorporated		6.00		2-1-2028		800,000		796,291
USA Compression Partners LP 144A		6.88		4-1-2026		850,000		874,438
								25,716,443

Oil, Gas & Consumable Fuels : 13.73%
Carrizo Oil & Gas Incorporated		8.25		7-15-2025		800,000		864,000
Cheniere Energy Partners LP		5.25		10-1-2025		3,875,000		3,855,625
Continental Resources Incorporated		3.80		6-1-2024		700,000		687,586
Continental Resources Incorporated		4.38		1-15-2028		250,000		249,250
Continental Resources Incorporated		5.00		9-15-2022		540,000		547,963
DCP Midstream Operating LP		2.70		4-1-2019		725,000		719,563
Denbury Resources Incorporated		6.38		8-15-2021		3,209,000		3,016,460
Denbury Resources Incorporated 144A		9.25		3-31-2022		676,000		716,560
El Paso LLC		6.50		4-1-2020		750,000		787,080
Enable Midstream Partner LP		2.40		5-15-2019		2,350,000		2,338,602
Enable Midstream Partner LP		3.90		5-15-2024		1,750,000		1,684,165
Enable Oklahoma Intrastate Transmission LLC 144A		6.25		3-15-2020		250,000		259,378
Energy Transfer Partners LP		5.20		2-1-2022		750,000		780,878
EnLink Midstream Partners LLC		4.40		4-1-2024		3,200,000		3,072,128
EnLink Midstream Partners LP		4.85		7-15-2026		600,000		576,872
Exterran Partners LP		6.00		4-1-2021		2,550,000		2,537,250
Kinder Morgan Energy Partners LP		3.95		9-1-2022		750,000		752,714
Kinder Morgan Incorporated		6.50		9-15-2020		285,000		302,360
Kinder Morgan Incorporated		7.42		2-15-2037		800,000		919,161
Matador Resources Company		6.88		4-15-2023		300,000		315,375
Murphy Oil Corporation		4.45		12-1-2022		1,250,000		1,235,488
Murphy Oil Corporation		5.75		8-15-2025		185,000		185,466
Murphy Oil Corporation		6.88		8-15-2024		850,000		892,500
Nabors Industries Incorporated		0.75		1-15-2024		1,425,000		1,112,234
Nabors Industries Incorporated		4.63		9-15-2021		750,000		736,875
Phillips 66		4.30		4-1-2022		625,000		642,624
Pioneer Natural Resources Company		3.95		7-15-2022		750,000		759,292
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		3,500,000		3,601,150
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		3,074,000		3,565,840
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		240,000		288,000


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


Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels (continued)
Rose Rock Midstream LP		5.63	%	7-15-2022	$	1,300,000	$	1,280,500
Rose Rock Midstream LP		5.63		11-15-2023		825,000		787,875
Sabine Pass Liquefaction LLC		5.63		2-1-2021		600,000		627,307
Sabine Pass Liquefaction LLC		5.63		4-15-2023		1,500,000		1,600,388
Sabine Pass Liquefaction LLC		5.63		3-1-2025		410,000		437,096
Sabine Pass Liquefaction LLC		5.75		5-15-2024		1,000,000		1,075,670
Sabine Pass Liquefaction LLC		6.25		3-15-2022		1,575,000		1,699,931
SemGroup Corporation		6.38		3-15-2025		3,425,000		3,288,000
SemGroup Corporation		7.25		3-15-2026		1,000,000		997,500
Southern Star Central Corporation 144A		5.13		7-15-2022		925,000		925,000
Southwestern Energy Company		7.50		4-1-2026		400,000		415,000
Southwestern Energy Company		7.75		10-1-2027		400,000		418,250
Summit Midstream Holdings LLC		5.75		4-15-2025		225,000		217,125
Tallgrass Energy Partners LP 144A		5.50		1-15-2028		150,000		150,375
Tallgrass Energy Partners LP 144A		5.50		9-15-2024		5,200,000		5,330,000
Tesoro Logistics LP		6.38		5-1-2024		450,000		479,075
Ultra Resources Incorporated 144A		6.88		4-15-2022		770,000		512,050
Ultra Resources Incorporated 144A		7.13		4-15-2025		2,425,000		1,448,938
Western Gas Partners LP		5.38		6-1-2021		15,000		15,534
Williams Partners LP		3.35		8-15-2022		750,000		736,815
								60,444,868

Financials : 7.51%

Banks : 1.27%
Bank of America Corporation		5.70		1-24-2022		250,000		269,948
Citigroup Incorporated		4.13		3-9-2021		60,000		59,925
Citigroup Incorporated		4.50		1-14-2022		250,000		256,655
Citigroup Incorporated		5.25		3-7-2025		10,000		10,225
Citigroup Incorporated		6.13		3-9-2028		75,000		78,750
City National Bank		5.38		7-15-2022		500,000		526,856
International Bank for Reconstruction & Development		7.50		6-9-2021		5,000,000		1,325,101
International Finance Corporation		7.50		5-9-2022		9,000,000		2,314,443
JPMorgan Chase & Company		3.38		5-1-2023		750,000		733,320
								5,575,223

Capital Markets : 0.48%
ACE Securities Corporation (1 Month LIBOR +2.63%) ±		4.69		6-25-2033		171,351		171,361
Blackstone Holdings Finance Company LLC 144A		5.88		3-15-2021		750,000		793,582
Goldman Sachs Group Incorporated		5.75		1-24-2022		750,000		801,128
MSCI Incorporated 144A		5.38		5-15-2027		350,000		352,625
								2,118,696

Consumer Finance : 1.40%
Ally Financial Incorporated		8.00		12-31-2018		780,000		795,210
Ally Financial Incorporated		8.00		3-15-2020		880,000		937,200
Discover Financial Services		5.20		4-27-2022		750,000		780,473
FirstCash Incorporated 144A		5.38		6-1-2024		575,000		572,125
General Motors Financial Company Incorporated		3.70		5-9-2023		750,000		734,543
Navient Corporation		8.00		3-25-2020		930,000		981,150
Springleaf Finance Corporation		6.00		6-1-2020		825,000		849,750
Springleaf Finance Corporation		7.13		3-15-2026		500,000		508,125
								6,158,576

Diversified Financial Services : 2.72%
Infinity Acquisition LLC 144A		7.25		8-1-2022		960,000		977,405
ING US Incorporated		5.50		7-15-2022		750,000		797,290
LPL Holdings Incorporated 144A		5.75		9-15-2025		10,025,000		9,724,250


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


Security name	Interest rate			Maturity date	Principal		Value
Diversified Financial Services (continued)
Vantiv LLC 144A		4.38	%	11-15-2025	$	500,000	$	473,125
								11,972,070

Insurance : 1.64%
American International Group Incorporated		4.88		6-1-2022		750,000		784,388
AmWINS Group Incorporated 144A		7.75		7-1-2026		1,125,000		1,175,625
Hartford Financial Services Group Incorporated		5.13		4-15-2022		650,000		685,146
HUB International Limited 144A		7.00		5-1-2026		500,000		501,875
Liberty Mutual Group Incorporated 144A		4.95		5-1-2022		750,000		780,402
ProAssurance Corporation		5.30		11-15-2023		750,000		788,589
Prudential Financial Incorporated (3 Month LIBOR +2.38%) ±		4.50		9-15-2047		750,000		690,000
USIS Merger Subordinate Incorporated 144A		6.88		5-1-2025		1,175,000		1,160,313
W.R. Berkley Corporation		4.63		3-15-2022		650,000		670,391
								7,236,729

Health Care : 7.74%

Biotechnology : 0.17%
Amgen Incorporated		3.63		5-15-2022		750,000		756,023

Health Care Equipment & Supplies : 1.42%
Hill-Rom Holdings Incorporated 144A		5.00		2-15-2025		400,000		386,000
Hill-Rom Holdings Incorporated 144A		5.75		9-1-2023		200,000		203,000
Hologic Incorporated 144A		4.38		10-15-2025		1,925,000		1,861,879
Hologic Incorporated 144A		4.63		2-1-2028		225,000		211,500
Kinetics Concepts Incorporated 144A		7.88		2-15-2021		1,425,000		1,458,017
Surgery Center Holdings Incorporated 144A		6.75		7-1-2025		500,000		471,875
Surgery Center Holdings Incorporated 144A		8.88		4-15-2021		1,600,000		1,644,000
								6,236,271

Health Care Providers & Services : 5.12%
Acadia Healthcare Company Incorporated		6.50		3-1-2024		190,000		193,325
Centene Corporation 144A		5.38		6-1-2026		575,000		588,656
Centene Corporation		6.13		2-15-2024		325,000		342,063
CHS Incorporated		5.13		8-1-2021		1,850,000		1,749,989
Coventry Health Care Incorporated		5.45		6-15-2021		750,000		786,206
DaVita HealthCare Partners Incorporated		5.00		5-1-2025		950,000		895,375
Express Scripts Holding Company		3.90		2-15-2022		665,000		666,101
HCA Incorporated		5.25		6-15-2026		325,000		329,875
HCA Incorporated		6.50		2-15-2020		1,400,000		1,457,120
HealthSouth Corporation		5.75		9-15-2025		575,000		577,875
Mednax Incorporated 144A		5.25		12-1-2023		475,000		471,438
MPH Acquisition Holdings LLC 144A		7.13		6-1-2024		2,861,000		2,961,135
MPT Operating Partnership LP		5.00		10-15-2027		1,100,000		1,064,250
MPT Operating Partnership LP		5.25		8-1-2026		1,575,000		1,551,375
MPT Operating Partnership LP		6.38		3-1-2024		110,000		115,500
NVA Holdings Company 144A		6.88		4-1-2026		200,000		199,000
Polaris Intermediate Corporation 144A		8.50		12-1-2022		475,000		491,031
Select Medical Corporation		6.38		6-1-2021		3,050,000		3,080,500
Tenet Healthcare Corporation		4.63		7-15-2024		436,000		422,375
Tenet Healthcare Corporation		6.00		10-1-2020		700,000		727,125
Vizient Incorporated 144A		10.38		3-1-2024		3,550,000		3,896,125
								22,566,439

Health Care Technology : 0.55%
Change Healthcare Holdings Incorporated 144A		5.75		3-1-2025		1,950,000		1,886,625
Quintiles IMS Holdings Incorporated 144A		4.88		5-15-2023		300,000		304,500


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


Security name	Interest rate			Maturity date	Principal		Value
Health Care Technology (continued)
Quintiles IMS Holdings Incorporated 144A		5.00	%	10-15-2026	$	225,000	$	224,258
								2,415,383

Life Sciences Tools & Services : 0.24%
Charles River Laboratories Incorporated 144A		5.50		4-1-2026		275,000		278,438
Life Technologies Corporation		6.00		3-1-2020		750,000		779,839
								1,058,277

Pharmaceuticals : 0.24%
Valeant Pharmaceuticals International 144A		8.50		1-31-2027		300,000		308,100
Watson Pharmaceuticals Incorporated		3.25		10-1-2022		750,000		731,644
								1,039,744

Industrials : 4.57%
Aerospace & Defense : 0.66%
BAE Systems Holdings Incorporated 144A		3.80		10-7-2024		1,000,000		993,357
L-3 Communications Corporation		4.95		2-15-2021		750,000		775,865
RBS Global & Rexnord LLC 144A		4.88		12-15-2025		1,200,000		1,152,000
								2,921,222

Airlines : 0.82%
Aviation Capital Group Corporation 144A		6.75		4-6-2021		1,100,000		1,186,515
BBA US Holdings Incorporated 144A		5.38		5-1-2026		2,025,000		2,040,167
Delta Air Lines Incorporated		4.75		11-7-2021		358,856		365,064
								3,591,746

Commercial Services & Supplies : 2.75%
Advanced Disposal Services Incorporated 144A		5.63		11-15-2024		1,750,000		1,728,125
Aramark Services Incorporated 144A		5.00		2-1-2028		225,000		217,058
Aramark Services Incorporated		5.13		1-15-2024		545,000		549,769
Covanta Holding Corporation		5.88		3-1-2024		1,530,000		1,530,000
Covanta Holding Corporation		5.88		7-1-2025		900,000		879,750
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		4,826,250
Waste Pro USA Incorporated 144A		5.50		2-15-2026		375,000		358,125
Wrangler Buyer Corporation 144A		6.00		10-1-2025		250,000		235,000
								12,115,640

Industrial Conglomerates : 0.04%
General Electric Capital Corporation		4.65		10-17-2021		187,000		194,360

Professional Services : 0.13%
Verisk Analytics Incorporated		5.80		5-1-2021		530,000		559,821

Road & Rail : 0.14%
TTX Company 144A		2.60		6-15-2020		650,000		639,724

Trading Companies & Distributors : 0.02%
International Lease Finance Corporation 144A		7.13		9-1-2018		75,000		75,259

Information Technology : 6.22%

Communications Equipment : 0.36%
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		825,000		849,750


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


Security name	Interest rate			Maturity date	Principal		Value
Communications Equipment (continued)
Motorola Solutions Incorporated		3.75	%	5-15-2022	$	750,000	$	748,005
								1,597,755

Electronic Equipment, Instruments & Components : 0.14%
Keysight Technologies		4.60		4-6-2027		600,000		608,076

Internet Software & Services : 0.86%
Infor (US) Incorporated		6.50		5-15-2022		550,000		556,875
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13		5-1-2021		550,000		555,500
Zayo Group LLC 144A		5.75		1-15-2027		1,150,000		1,138,500
Zayo Group LLC		6.00		4-1-2023		75,000		76,688
Zayo Group LLC		6.38		5-15-2025		1,400,000		1,449,000
								3,776,563

IT Services : 1.98%
Cardtronics Incorporated		5.13		8-1-2022		560,000		530,600
Cardtronics Incorporated 144A		5.50		5-1-2025		1,390,000		1,237,100
First Data Corporation 144A		5.00		1-15-2024		2,725,000		2,748,844
First Data Corporation 144A		5.38		8-15-2023		332,000		336,565
First Data Corporation 144A		5.75		1-15-2024		375,000		383,438
First Data Corporation 144A		7.00		12-1-2023		975,000		1,020,094
Gartner Incorporated 144A		5.13		4-1-2025		2,425,000		2,446,573
								8,703,214

Semiconductors & Semiconductor Equipment : 0.06%
Micron Technology Incorporated		5.50		2-1-2025		256,000		264,640

Software : 0.24%
CDK Global Incorporated		5.00		10-15-2024		225,000		229,500
CDK Global Incorporated		5.88		6-15-2026		175,000		179,375
Fair Isaac Corporation 144A		5.25		5-15-2026		175,000		175,752
Symantec Corporation 144A		5.00		4-15-2025		475,000		468,505
								1,053,132

Technology Hardware, Storage & Peripherals : 2.59%
Dell International LLC 144A		5.88		6-15-2021		1,000,000		1,023,675
Dell International LLC 144A		7.13		6-15-2024		4,525,000		4,864,375
Hewlett-Packard Company		4.05		9-15-2022		750,000		761,093
NCR Corporation		5.88		12-15-2021		5,000		5,075
NCR Corporation		6.38		12-15-2023		4,650,000		4,743,000
								11,397,218

Materials : 2.09%

Chemicals : 0.26%
Dow Chemical Company		4.13		11-15-2021		750,000		763,725
Valvoline Incorporated		5.50		7-15-2024		375,000		378,750
								1,142,475

Containers & Packaging : 1.83%
Ball Corporation		4.88		3-15-2026		575,000		572,844
Ball Corporation		5.00		3-15-2022		25,000		25,688
Ball Corporation		5.25		7-1-2025		190,000		194,750
Berry Plastics Corporation		5.13		7-15-2023		350,000		347,375
Berry Plastics Corporation		6.00		10-15-2022		215,000		219,838
Crown Americas LLC 144A		4.75		2-1-2026		850,000		799,000


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


Security name	Interest rate			Maturity date	Principal		Value
Containers & Packaging (continued)
Crown Cork & Seal Company Incorporated		7.38	%	12-15-2026	$	35,000	$	37,800
Flex Acquisition Company Incorporated 144A		6.88		1-15-2025		1,500,000		1,458,750
Flex Acquisition Company Incorporated 144A		7.88		7-15-2026		275,000		276,898
Owens-Brockway Glass Container Incorporated 144A		5.88		8-15-2023		325,000		329,875
Owens-Illinois Incorporated 144A		6.38		8-15-2025		3,100,000		3,177,465
Reynolds Group Issuer Incorporated 144A		5.13		7-15-2023		200,000		198,880
Sealed Air Corporation 144A		5.25		4-1-2023		325,000		330,688
Silgan Holdings Incorporated		5.50		2-1-2022		75,000		75,750
								8,045,601

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

Real Estate : 4.23%

Equity REITs : 4.23%
Alexandria Real Estate Company		4.60		4-1-2022		650,000		668,855
American Tower Corporation		5.90		11-1-2021		650,000		692,222
CoreCivic Incorporated		5.00		10-15-2022		575,000		573,563
DDR Corporation		4.70		6-1-2027		600,000		601,963
Equinix Incorporated		5.75		1-1-2025		1,275,000		1,314,844
Equinix Incorporated		5.88		1-15-2026		425,000		439,344
ESH Hospitality Incorporated 144A		5.25		5-1-2025		1,700,000		1,649,000
Essex Portfolio LP		3.63		8-15-2022		750,000		745,508
Iron Mountain Incorporated 144A		5.25		3-15-2028		675,000		624,375
Iron Mountain Incorporated 144A		5.38		6-1-2026		150,000		142,688
Iron Mountain Incorporated		6.00		8-15-2023		2,500,000		2,556,250
MGM Growth Properties LLC		4.50		1-15-2028		400,000		365,000
Omega HealthCare Investors Incorporated		4.50		4-1-2027		600,000		572,198
Sabra Health Care REIT Incorporated		5.38		6-1-2023		900,000		902,250
Sabra Health Care REIT Incorporated		5.50		2-1-2021		1,225,000		1,241,844
SBA Communications Corporation		4.00		10-1-2022		225,000		217,760
SBA Communications Corporation		4.88		7-15-2022		640,000		637,600
The Geo Group Incorporated		5.13		4-1-2023		800,000		778,768
The Geo Group Incorporated		5.88		1-15-2022		1,565,000		1,580,650
The Geo Group Incorporated		5.88		10-15-2024		840,000		819,000
The Geo Group Incorporated		6.00		4-15-2026		184,000		179,400
Ventas Realty LP		4.25		3-1-2022		650,000		662,089
Welltower Incorporated		5.25		1-15-2022		650,000		676,590
								18,641,761

Telecommunication Services : 2.91%

Diversified Telecommunication Services : 1.28%
AT&T Incorporated		3.80		3-15-2022		750,000		752,093
GCI Incorporated		6.75		6-1-2021		1,000,000		1,012,950
Level 3 Financing Incorporated		5.13		5-1-2023		975,000		964,031
Level 3 Financing Incorporated		5.25		3-15-2026		650,000		626,438
Level 3 Financing Incorporated		5.38		8-15-2022		300,000		300,750
Level 3 Financing Incorporated		5.38		1-15-2024		700,000		693,000
Level 3 Financing Incorporated		5.38		5-1-2025		625,000		609,375
Level 3 Financing Incorporated		5.63		2-1-2023		500,000		503,750
Level 3 Financing Incorporated		6.13		1-15-2021		175,000		176,586
								5,638,973

Wireless Telecommunication Services : 1.63%
Sprint Capital Corporation		6.88		11-15-2028		1,025,000		986,563
Sprint Capital Corporation		8.75		3-15-2032		1,625,000		1,748,906
Sprint Communications Incorporated		7.00		8-15-2020		225,000		235,125


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


Security name	Interest rate			Maturity date	Principal		Value
Wireless Telecommunication Services (continued)
T-Mobile USA Incorporated		4.00	%	4-15-2022	$	650,000	$	642,688
T-Mobile USA Incorporated		4.50		2-1-2026		125,000		117,500
T-Mobile USA Incorporated		4.75		2-1-2028		125,000		115,900
T-Mobile USA Incorporated		5.13		4-15-2025		425,000		426,870
T-Mobile USA Incorporated		5.38		4-15-2027		1,500,000		1,479,375
T-Mobile USA Incorporated		6.00		3-1-2023		300,000		309,000
T-Mobile USA Incorporated		6.38		3-1-2025		975,000		1,016,438
T-Mobile USA Incorporated		6.50		1-15-2024		80,000		83,400
								7,161,765

Utilities : 4.60%

Electric Utilities : 0.21%
Great Plains Energy Incorporated		4.85		6-1-2021		750,000		767,877
NextEra Energy Incorporated 144A		4.25		9-15-2024		175,000		168,875
								936,752

Gas Utilities : 0.22%
AmeriGas Partners LP		5.75		5-20-2027		1,000,000		956,250

Independent Power & Renewable Electricity Producers : 3.88%
NSG Holdings LLC 144A		7.75		12-15-2025		4,670,629		5,131,853
Pattern Energy Group Incorporated 144A		5.88		2-1-2024		5,225,000		5,264,188
TerraForm Power Operating LLC 144A		4.25		1-31-2023		3,025,000		2,911,563
TerraForm Power Operating LLC 144A		5.00		1-31-2028		675,000		635,344
TerraForm Global Operating LLC 144A		6.13		3-1-2026		1,175,000		1,142,688
TerraForm Power Operating LLC 144A		6.63		6-15-2025		1,850,000		1,970,250
								17,055,886

Multi-Utilities : 0.29%
Ameren Illinois Company		9.75		11-15-2018		500,000		509,916
CMS Energy Corporation		5.05		3-15-2022		750,000		783,645
								1,293,561

Total Corporate Bonds and Notes (Cost $334,313,918)								335,713,463


Foreign Corporate Bonds and Notes @: 4.28%

Energy : 0.30%

Oil, Gas & Consumable Fuels : 0.30%
Petroleos Mexicanos 144A (MXN)		7.19		9-12-2024		28,200,000		1,331,995

Financials : 3.66%

Banks : 3.60%
European Investment Bank (BRL)		7.25		6-28-2021		9,000,000		2,371,513
European Investment Bank (ZAR)		8.00		5-5-2027		21,000,000		1,556,241
European Investment Bank (ZAR)		8.38		7-29-2022		40,000,000		3,067,674
European Investment Bank (ZAR)		8.75		8-18-2025		20,000,000		1,536,358
European Investment Bank (ZAR)		9.00		3-31-2021		17,400,000		1,354,260
International Bank for Reconstruction & Development (ZAR)		7.00		6-7-2023		15,000,000		1,084,716
KfW (AUD)		5.00		3-19-2024		1,300,000		1,076,000
Landwirtschaftliche Rentenbank (ZAR)		6.00		3-18-2019		35,000,000		2,629,964
Landwirtschaftliche Rentenbank (ZAR)		8.25		5-23-2022		15,000,000		1,146,573
								15,823,299


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


Security name	Interest rate			Maturity date	Principal		Value
Diversified Financial Services : 0.06%
AA Bond Company Limited (GBP)		4.25	%	7-31-2043		200,000	$	271,038

Telecommunication Services : 0.32%

Wireless Telecommunication Services : 0.32%
America Movil SAB de CV (MXN)		7.13		12-9-2024		28,850,000		1,412,149

Total Foreign Corporate Bonds and Notes (Cost $20,887,774)								18,838,481


Foreign Government Bonds @: 22.54%
Colombia (COP)		7.00		9-11-2019		18,500,000,000		6,546,606
Colombia (COP)		7.00		5-4-2022		18,650,000,000		6,710,013
Colombia (COP)		7.50		8-26-2026		22,725,000,000		8,241,749
Colombia (COP)		7.75		4-14-2021		5,250,000,000		1,905,838
India (INR)		7.80		4-11-2021		435,000,000		6,360,772
Indonesia (IDR)		7.88		4-15-2019		133,640,000,000		9,301,566
Indonesia (IDR)		8.38		9-15-2026		110,000,000,000		7,855,724
Malaysia (MYR)		4.18		7-15-2024		19,850,000		4,939,779
Malaysia (MYR)		4.23		6-30-2031		51,300,000		12,228,822
Mexico (MXN)		5.75		3-5-2026		72,000,000		3,419,408
Mexico (MXN)		8.00		11-7-2047		217,500,000		11,824,839
Mexico (MXN)		10.00		12-5-2024		62,120,000		3,708,385
Mexico (MXN)		10.00		12-5-2024		14,100,000		841,729
New Zealand (NZD)		4.50		4-15-2027		8,250,000		6,443,221
Queensland Treasury (AUD)		5.75		7-22-2024		4,100,000		3,556,930
Republic of Peru (PEN)		6.35		8-12-2028		16,400,000		5,353,046
Total Foreign Government Bonds (Cost $112,150,824)								99,238,427

Loans : 19.77%

Consumer Discretionary : 5.24%

Auto Components : 0.72%
Allison Transmission Incorporated (1 Month LIBOR +1.75%) ±		3.84		9-23-2022	$	1,836,180		1,844,700
Belron Finance US LLC (3 Month LIBOR +2.50%) ±‡		4.86		11-7-2024		298,500		299,246
Federal-Mogul Corporation (1 Month LIBOR +3.75%) ±		5.82		4-15-2021		1,036,583		1,037,879
								3,181,825

Distributors : 0.56%
Spin Holdco Incorporated (3 Month LIBOR +3.25%) ±		5.59		11-14-2022		2,447,419		2,450,919

Food & Staples Retailing : 0.09%
TKC Holdings Incorporated (1 Month LIBOR +3.75%) ±		5.83		2-1-2023		395,000		394,605

Hotels, Restaurants & Leisure : 2.55%
CCM Merger Incorporated (1 Month LIBOR +2.75%) ±		4.83		8-8-2021		621,798		623,197
Four Seasons Holdings Incorporated (1 Month LIBOR +2.00%) ±		4.08		11-30-2023		897,000		896,363
Greektown Holdings LLC (1 Month LIBOR +3.00%) ±		5.08		4-25-2024		4,962,406		4,960,322
Montreign Operating Company LLC (3 Month LIBOR +8.25%) ±		10.59		12-7-2022		5,361,563		4,736,029
								11,215,911

Household Products : 0.14%
Anchor Glass Container Corporation (1 Month LIBOR +7.75%) ±		9.82		12-7-2024		650,000		424,665
Lifetime Brands Incorporated (1 Month LIBOR +3.50%) ±‡		5.58		2-28-2025		199,500		199,001
								623,666


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


Security name	Interest rate			Maturity date	Principal		Value
Internet & Direct Marketing Retail : 0.07%
Shutterfly Incorporated (1 Month LIBOR +2.75%) ±		4.83	%	8-17-2024	$	325,000	$	326,219

Media : 1.11%
A-L Parent LLC (1 Month LIBOR +3.25%) ±‡		5.33		12-1-2023		3,447,500		3,460,428
Altice US Finance I Corporation (1 Month LIBOR +2.25%) ±		4.33		7-28-2025		710,608		707,055
CSC Holdings LLC (1 Month LIBOR +2.50%) ±		4.57		1-25-2026		149,625		149,375
Mission Broadcasting Incorporated (1 Month LIBOR +2.50%) ±		4.59		1-17-2024		31,566		31,576
National CineMedia LLC (1 Month LIBOR +3.00%) ±		5.09		10-31-2021		300,000		300,189
Nexstar Broadcasting Group Incorporated (1 Month LIBOR +2.50%) ±		4.59		1-17-2024		236,787		236,860
								4,885,483

Consumer Staples : 0.18%

Food Products : 0.18%
B&G Foods Incorporated (1 Month LIBOR +2.00%) ±		4.08		11-2-2022		492,417		493,560
CHG PPC Parent LLC (1 Month LIBOR +2.75%) ±‡		4.83		3-31-2025		125,000		124,844
Prestige Brands Incorporated (1 Month LIBOR +2.00%) ±		4.08		1-26-2024		151,538		151,673
								770,077

Energy : 0.74%

Energy Equipment & Services : 0.15%
ExGen Renewables IV LLC (3 Month LIBOR +3.00%) ±‡		5.31		11-28-2024		637,455		641,439

Oil, Gas & Consumable Fuels : 0.59%
Chesapeake Energy Corporation (1 Month LIBOR +7.50%) ±		9.58		8-23-2021		450,000		470,025
Lucid Energy Group II Borrower LLC (1 Month LIBOR +3.00%) ±		5.08		2-17-2025		224,438		217,424
Traverse Midstream Partners LLC (3 Month LIBOR +4.00%) ±		6.34		9-27-2024		575,000		576,995
Ultra Resources Incorporated (1 Month LIBOR +3.00%) ±		5.08		4-12-2024		1,475,000		1,344,713
								2,609,157

Financials : 2.82%

Capital Markets : 0.48%
EIG Management Company LLC (3 Month LIBOR +3.75%) ±		6.08		2-22-2025		124,688		125,414
Neptune Finco Corporation (1 Month LIBOR +2.25%) ±		4.32		7-17-2025		776,183		771,332
Russell Investments US Institutional Holdco Incorporated (1 Month LIBOR +3.25%) ±		5.33		6-1-2023		593,148		593,148
Victory Capital Holdings Incorporated (3 Month LIBOR +2.75%) ±		5.08		2-12-2025		644,129		644,934
								2,134,828

Consumer Finance : 0.04%
KAR Auction Services Incorporated (1 Month LIBOR +2.50%) ±		4.63		3-9-2023		153,827		154,019

Diversified Financial Services : 1.19%
Ipreo Holdings LLC (2 Month LIBOR +2.00%) ±		7.00		8-6-2021		139,595		139,421
LPL Holdings Incorporated (1 Month LIBOR +2.25%) ±		4.49		9-23-2024		1,069,022		1,069,022
Nielsen Finance LLC (1 Month LIBOR +2.00%) ±		4.10		10-4-2023		466,717		463,968
Resolute Investment Managers Incorporated (3 Month LIBOR +3.25%) ±‡		5.58		4-30-2022		2,439,837		2,448,986
Resolute Investment Managers Incorporated (3 Month LIBOR +7.50%) ±‡		9.84		4-30-2023		1,090,000		1,100,900
								5,222,297

Insurance : 1.11%
Alliant Holdings Intermediate LLC (1 Month LIBOR +3.00%) ±		5.08		5-9-2025		1,382,265		1,381,656
AmWINS Group Incorporated (1 Month LIBOR +2.75%) ±		4.83		1-25-2024		890,658		890,284
Hub International Limited (2 Month LIBOR +3.00%) ±		5.33		4-25-2025		1,250,000		1,248,750


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


Security name	Interest rate			Maturity date	Principal		Value
Insurance (continued)
Solera Holdings Incorporated (1 Month LIBOR +2.75%) ±		4.83	%	3-3-2023	$	1,085,759	$	1,086,606
USI Incorporated (3 Month LIBOR +3.00%) ±		5.33		5-16-2024		298,124		297,155
								4,904,451

Health Care : 2.24%

Health Care Equipment & Supplies : 0.43%
DJO Finance LLC (1 Month LIBOR +3.25%) ±		5.46		6-8-2020		552,900		551,634
Kinetic Concepts Incorporated (3 Month LIBOR +3.25%) ±		5.58		2-2-2024		1,322,876		1,325,628
								1,877,262

Health Care Providers & Services : 0.55%
CHS Incorporated (3 Month LIBOR +3.25%) ±		5.56		1-27-2021		557,504		547,207
MPH Acquisition Holdings LLC (3 Month LIBOR +2.75%) ±		5.08		6-7-2023		462,824		462,709
Press Ganey Holdings Incorporated (1 Month LIBOR +6.50%) ±‡		8.58		10-21-2024		516,856		522,025
Surgery Center Holdings Incorporated (1 Month LIBOR +3.25%) ±		5.33		9-2-2024		247,814		247,762
TeamHealth Holdings Incorporated (1 Month LIBOR +2.75%) ±‡		4.83		2-6-2024		442,886		430,153
Vizient Incorporated (1 Month LIBOR +2.75%) ±‡		4.83		2-13-2023		192,929		193,251
								2,403,107

Health Care Technology : 0.64%
Change Healthcare Holdings Incorporated (1 Month LIBOR +2.75%) ±		4.83		3-1-2024		660,674		659,392
Emerald Bidco Incorporated (1 Month LIBOR +2.75%) ±		4.83		10-23-2023		2,182,429		2,181,752
								2,841,144

Life Sciences Tools & Services : 0.10%
Syneos Health Incorporated (1 Month LIBOR +2.00%) ±		4.08		8-1-2024		434,922		434,513

Pharmaceuticals : 0.52%
Endo Finance LLC (1 Month LIBOR +4.25%) ±		6.38		4-29-2024		293,721		293,782
Valeant Pharmaceuticals International Incorporated (1 Month LIBOR +3.00%) ±		5.09		6-2-2025		2,016,953		2,018,748
								2,312,530

Industrials : 2.89%

Aerospace & Defense : 0.55%
TransDigm Incorporated (1 Month LIBOR +2.50%) ±		4.58		8-22-2024		2,448,900		2,448,900

Commercial Services & Supplies : 1.16%
Advanced Disposal Services Incorporated (1 Month LIBOR +2.25%) ±		4.19		11-10-2023		1,191,960		1,192,412
Advantage Sales & Marketing LLC (1 Month LIBOR +3.25%) ±		5.33		7-25-2021		223,869		210,507
Advantage Sales & Marketing LLC (1 Month LIBOR +6.50%) ±		8.58		7-25-2022		1,250,000		1,089,063
Sedgwick Claims Management Services Incorporated (1 Month LIBOR +2.75%) ±		4.83		3-1-2021		517,481		516,617
WASH Multifamily Laundry Systems LLC 1st Lien Term (1 Month LIBOR +3.25%) ±‡		5.33		5-14-2022		169,205		168,359
WASH Multifamily Laundry Systems LLC 2015 Term Loan B (1 Month LIBOR +3.25%) ±‡		5.33		5-14-2022		966,172		961,341
Wrangler Buyer Corporation (1 Month LIBOR +2.75%) ±		4.83		9-27-2024		970,499		972,324
								5,110,623

Communications Equipment : 0.25%
Charter Communications Operating LLC (1 Month LIBOR +2.00%) ±		4.08		4-30-2025		1,094,500		1,094,752


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


Security name	Interest rate			Maturity date	Principal		Value
Electrical Equipment : 0.10%
Generac Power Systems Incorporated (1 Month LIBOR +1.75%) ±		3.84	%	5-31-2023	$	425,780	$	425,248

Machinery : 0.68%
Columbus McKinnon Corporation (3 Month LIBOR +2.50%) ±‡		4.83		1-31-2024		973,039		973,039
Gates Global LLC (3 Month LIBOR +2.75%) ±		5.08		4-1-2024		604,670		605,777
Harsco Corporation (1 Month LIBOR +2.25%) ±		4.38		12-6-2024		100,000		100,417
Onex Wizard Acquisition Company (1 Month LIBOR +2.75%) ±		4.83		3-13-2022		572,855		574,287
RBS Global Incorporated (1 Month LIBOR +2.25%) ±		4.31		8-21-2024		750,000		751,020
								3,004,540

Professional Services : 0.15%
TransUnion (1 Month LIBOR +2.00%) ±		4.08		4-10-2023		598,492		599,737
TransUnion (1 Month LIBOR +2.00%) ±		4.08		6-19-2025		50,000		50,032
								649,769

Information Technology : 2.35%

Electronic Equipment, Instruments & Components : 0.51%
Dell Incorporated (1 Month LIBOR +2.00%) ±		4.08		9-7-2023		2,255,168		2,255,348

Internet Software & Services : 1.65%
Ancestry.com Incorporated (1 Month LIBOR +3.25%) ±		5.33		10-19-2023		5,892,103		5,892,103
Applied Systems Incorporated (3 Month LIBOR +3.00%) ±		5.33		9-19-2024		322,563		323,504
Infor US Incorporated (1 Month LIBOR +2.75%) ±		4.83		2-1-2022		774,947		775,777
Sophia Holding Finance LP (3 Month LIBOR +3.25%) ±		5.58		9-30-2022		143,922		144,024
Zayo Group LLC (1 Month LIBOR +2.25%) ±		4.33		1-19-2024		132,244		132,693
								7,268,101

Semiconductors & Semiconductor Equipment : 0.08%
Micron Technology Incorporated (1 Month LIBOR +1.75%) ±		3.83		4-26-2022		343,000		343,713

Software : 0.11%
SS&C Technologies Incorporated (1 Month LIBOR +2.50%) ±		4.58		4-16-2025		351,246		352,124
SS&C Technologies Incorporated (1 Month LIBOR +2.50%) ±		4.58		4-16-2025		134,731		135,068
								487,192

Materials : 0.90%

Containers & Packaging : 0.90%
Berry Plastics Corporation (1 Month LIBOR +2.00%) ±		4.08		10-1-2022		387,258		387,838
Flex Acquisition Company Incorporated (3 Month LIBOR +3.25%) ±		5.75		6-29-2025		750,000		749,063
Reynolds Group Holdings Incorporated (1 Month LIBOR +2.75%) ±		4.83		2-5-2023		2,456,344		2,463,664
RING Container Technologies (1 Month LIBOR +2.75%) ±		4.83		10-31-2024		348,250		347,379
								3,947,944

Real Estate : 1.28%

Equity REITs : 0.79%
ESH Hospitality Incorporated (1 Month LIBOR +2.00%) ±		4.08		8-30-2023		1,217,695		1,215,662
MGM Growth Properties LLC (1 Month LIBOR +2.00%) ±		4.08		4-25-2023		317,562		317,711
The Geo Group Incorporated (1 Month LIBOR +2.00%) ±		4.08		3-22-2024		1,956,240		1,947,691
								3,481,064

Real Estate Management & Development : 0.49%
Capital Automotive LP (1 Month LIBOR +2.50%) ±		4.58		3-24-2024		1,353,670		1,351,977


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


Security name	Interest rate			Maturity date	Principal		Value
Real Estate Management & Development (continued)
Capital Automotive LP (1 Month LIBOR +6.00%) ±‡		8.08	%	3-24-2025	$	767,818	$	779,336
								2,131,313

Telecommunication Services : 0.78%

Diversified Telecommunication Services : 0.68%
Level 3 Financing Incorporated (1 Month LIBOR +2.25%) ±		4.33		2-22-2024		555,420		556,192
Telesat Canada (3 Month LIBOR +2.50%) ±		4.84		11-17-2023		2,441,736		2,443,762
								2,999,954

Wireless Telecommunication Services : 0.10%
Sprint Communications Incorporated (1 Month LIBOR +2.50%) ±		4.63		2-2-2024		444,375		444,264

Utilities : 0.35%

Independent Power & Renewable Electricity Producers : 0.35%
TerraForm Power Operating LLC (1 Month LIBOR +2.00%) ±‡		4.08		11-8-2022		671,625		671,625
Vistra Energy Corporation (1 Month LIBOR +2.25%) ±		4.33		12-14-2023		889,420		888,940
								1,560,565

Total Loans (Cost $88,055,324)								87,036,742


Non-Agency Mortgage-Backed Securities : 4.15%
American Money Management Corporation Series 2015-16A Class AR (3 Month LIBOR +1.26%) ±144A		3.60		4-14-2029		500,000		500,452
Argent Securities Incorporated Series 2004-W5 Class AV3B (1 Month LIBOR +0.90%) ±		2.96		4-25-2034		49,622		49,598
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±±		5.66		7-10-2044		547,504		225,922
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±±		5.48		1-15-2049		140,823		141,547
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50		9-25-2035		213,126		225,198
Banc of America Mortgage Securities Series 2003 Class 1A1 ±±		4.08		4-25-2033		259,673		246,598
Benchmark Mortgage Trust Bmark 2018 B1 A2		3.57		1-15-2051		195,000		196,553
Bluemountain CLO Limited Series 2015-2A Class A1R (3 Month LIBOR +0.93%) ±144A		3.26		7-18-2027		500,000		499,663
Centex Home Equity Series 2002-A Class AF6		5.54		1-25-2032		25,225		25,556
Centex Home Equity Series 2004-B Class AF6		4.69		3-25-2034		99,365		101,596
CIFC Funding Limited Series 2012-2RA Class A1 (3 Month LIBOR +0.80%) ±144A		3.15		1-20-2028		485,000		480,571
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±±		4.87		9-10-2045		1,000,000		1,013,307
Citigroup Commercial Mortgage Trust Series 2015 Class A (1 Month LIBOR +1.15%) ±144A		3.22		9-15-2027		595,000		594,992
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) ±144A		2.92		7-15-2032		750,000		750,248
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) ±144A		3.17		7-15-2030		928,845		925,404
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 (1 Month LIBOR +0.76%) ±		2.82		12-25-2033		19,048		18,976
Commercial Mortgage Trust Series 2012-CR2 Class C ±±		4.83		8-15-2045		1,000,000		1,004,762
Commercial Mortgage Trust Series 2012-LC4 Class A4		3.29		12-10-2044		205,000		204,709
Commercial Mortgage Trust Series 2012-LC4 Class AM		4.06		12-10-2044		500,000		506,811
Commercial Mortgage Trust Series 2012-LC4 Class C ±±		5.60		12-10-2044		500,000		496,597
Countrywide Home Loans Series 2003-48 Class 2A2 ±±		3.69		10-25-2033		57,461		56,762
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±±		3.55		9-25-2032		427,742		415,191
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±±		4.15		6-25-2033		80,753		81,093


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


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±±		3.78	%	3-25-2033	$	20,045	$	19,952
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 (1 Month LIBOR +0.66%) ±		2.72		4-25-2036		1,430		1,431
Crown Point Limited Series 2015-3A Class A1AR (3 Month LIBOR +0.91%) ±144A		3.25		12-31-2027		500,000		499,995
Global Mortgage Securitization Limited Series 2004-A Class A2 (1 Month LIBOR +0.32%) ±144A		2.38		11-25-2032		85,679		81,381
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±±(c)		1.36		8-10-2043		5,056,783		112,057
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±±(c)		2.18		5-10-2045		3,307,671		165,690
GSAA Home Equity Trust Series 2004-5 Class AF5		4.44		6-25-2034		1,548		1,547
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 (1 Month LIBOR +0.65%) ±		2.71		4-25-2035		3,267		3,271
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 (1 Month LIBOR +0.30%) ±144A		2.36		3-25-2035		63,327		62,880
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2013-C17 Class B ±±		4.88		1-15-2047		50,000		51,995
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±±		5.47		6-12-2047		249,995		249,690
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		2.21		6-12-2047		214,281		210,664
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±±		5.46		1-15-2049		82,051		82,166
JPMorgan Chase Commercial Mortgage Securities Trust Series 2018-WPT Class AFL (1 Month LIBOR +0.95%) ±144A		3.04		7-5-2033		440,000		439,733
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±±		4.43		7-25-2034		48,682		49,366
JPMorgan Mortgage Trust Series 2004-A3 Class 3A3 ±±		4.07		7-25-2034		46,764		46,168
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±±		3.84		6-25-2035		164,628		168,436
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±±		6.00		2-27-2037		2,792		2,788
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±±		3.63		12-25-2033		305,339		307,059
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±±		3.72		1-25-2034		8,222		8,153
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±±		4.20		11-21-2034		13,399		13,752
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50		1-25-2020		8,704		8,839
MASTR Specialized Loan Trust Series 2005-3 Class A1 (1 Month LIBOR +0.36%) ±144A		2.42		11-25-2035		195,320		194,649
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3		5.25		8-25-2036		7,542		7,555
Mid-State Trust Series 11 Class A1		4.86		7-15-2038		188,224		194,794
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 (6 Month LIBOR +0.68%) ±		3.18		1-25-2029		70,693		70,649
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±±(c)		1.47		8-15-2045		4,130,756		187,866
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C11 Class A4 ±±		4.16		8-15-2046		569,000		586,450
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 (1 Month LIBOR +1.05%) ±		3.11		12-27-2033		386,406		387,480
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±±		5.42		3-15-2045		900,000		917,661
Morgan Stanley Mortgage Loan Trust Series 2004-4 Class 2A ±±		6.38		9-25-2034		38,069		41,480
New Century Home Equity Loan Trust Series 2004-3 Class M1 (1 Month LIBOR +0.93%) ±		2.99		11-25-2034		1,165,049		1,167,400
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) ±144A		3.23		5-21-2027		700,000		699,163
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±±		3.81		5-25-2035		17,432		17,107
Rait Trust Series 2017-FL8 Class A (1 Month LIBOR +0.85%) ±144A		2.92		12-15-2037		266,542		266,466
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±±		4.45		12-26-2035		165		165
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88		2-25-2035		44,442		44,411
Sequoia Mortgage Trust Series 2003-1 Class 1A (1 Month LIBOR +0.76%) ±		2.85		4-20-2033		11,492		11,289
SoFi Professional Loan Program LLC Series 2017-A Class A2B 144A		2.40		3-26-2040		750,000		726,341
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) ±144A		2.94		8-20-2030		465,000		464,997
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±±		3.85		3-25-2034		36,114		35,666
Terwin Mortgage Trust Series 2003-6HE Class A3 (1 Month LIBOR +1.14%) ±		3.20		11-25-2033		159,555		158,462
Vendee Mortgage Trust Series 2003-2 Class IO ±±(c)		0.71		5-15-2033		3,596,945		110,471


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


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50	%	7-25-2034	$	111,219	$	119,423
Wind River CLO Limited Series 2013-2A Class BR (3 Month LIBOR +1.60%) ±144A		3.93		10-18-2030		500,000		497,752
Total Non-Agency Mortgage-Backed Securities (Cost $18,497,651)								18,256,816

				Expiration date	Shares
Rights : 0.04%

Utilities : 0.04%

Independent Power & Renewable Electricity Producers : 0.04%
Vistra Energy Corporation †				12-31-2046		327,375		199,699

Total Rights (Cost $340,913)								199,699

				Maturity date	Principal
Yankee Corporate Bonds and Notes : 9.17%

Consumer Discretionary : 0.20%

Media : 0.17%
WPP Finance 2010		3.63		9-7-2022	$	750,000		733,433

Textiles, Apparel & Luxury Goods : 0.03%
Eagle Intermediate Global Holding BV 144A		7.50		5-1-2025		150,000		149,250

Consumer Staples : 0.34%

Beverages : 0.18%
Pernod Ricard SA 144A		4.45		1-15-2022		760,000		779,418

Tobacco : 0.16%
BAT International Finance plc 144A		3.25		6-7-2022		750,000		734,927

Energy : 2.08%

Energy Equipment & Services : 0.40%
Ensco plc		5.75		10-1-2044		2,320,000		1,687,800
Trinidad Drilling Limited 144A		6.63		2-15-2025		75,000		72,750
								1,760,550

Oil, Gas & Consumable Fuels : 1.68%
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)†		9.50		12-1-2016		1,122,015		0
Griffin Coal Mining Company Limited (a)†		9.50		12-1-2016		91,731		0
Rockpoint Gas Storage 144A		7.00		3-31-2023		1,375,000		1,368,125
Teekay Corporation		8.50		1-15-2020		3,025,000		3,142,219
								7,399,389

Financials : 2.22%

Banks : 0.82%
ABN AMRO Bank NV 144A		4.80		4-18-2026		750,000		756,746
Banco del Estado de Chile 144A		3.88		2-8-2022		650,000		652,962
Corporación Andina de Fomento		4.38		6-15-2022		958,000		985,638
Nielsen Holding and Finance BV 144A		5.00		2-1-2025		875,000		807,188
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		415,000		413,963


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


Security name	Interest rate			Maturity date	Principal		Value
Banks (continued)
Preferred Term Securities XII Limited (a)†		0.00	%	12-24-2033	$	635,000	$	0
								3,616,497

Diversified Financial Services : 1.24%
Intelsat Jackson Holdings SA		5.50		8-1-2023		5,275,000		4,859,594
Tyco Electronics Group SA		3.50		2-3-2022		625,000		627,591
								5,487,185

Insurance : 0.16%
Sompo International Holdings Limited		7.00		7-15-2034		575,000		689,074

Health Care : 1.36%

Pharmaceuticals : 1.36%
Valeant Pharmaceuticals International Incorporated 144A		5.50		3-1-2023		2,200,000		2,084,500
Valeant Pharmaceuticals International Incorporated 144A		5.50		11-1-2025		375,000		375,353
Valeant Pharmaceuticals International Incorporated 144A		5.88		5-15-2023		770,000		739,585
Valeant Pharmaceuticals International Incorporated 144A		6.13		4-15-2025		1,940,000		1,818,750
Valeant Pharmaceuticals International Incorporated 144A		6.50		3-15-2022		325,000		338,878
Valeant Pharmaceuticals International Incorporated 144A		7.00		3-15-2024		575,000		609,644
Valeant Pharmaceuticals International Incorporated 144A		7.50		7-15-2021		10,000		10,201
								5,976,911

Industrials : 1.10%

Commercial Services & Supplies : 0.52%
Ritchie Brothers Auctioneers Incorporated 144A		5.38		1-15-2025		2,350,000		2,311,813

Machinery : 0.25%
Sensata Technologies BV 144A		5.00		10-1-2025		260,000		260,000
Sensata Technologies BV 144A		6.25		2-15-2026		800,000		839,000
								1,099,000

Professional Services : 0.15%
IHS Markit Limited 144A		4.75		2-15-2025		650,000		651,625

Road & Rail : 0.18%
Canadian Pacific Railway Company		4.50		1-15-2022		750,000		773,045

Materials : 1.28%

Containers & Packaging : 0.87%
Ardagh Packaging Finance plc 144A		4.25		9-15-2022		375,000		368,438
Ardagh Packaging Finance plc 144A		6.00		2-15-2025		1,700,000		1,659,625
Ardagh Packaging Finance plc 144A		7.25		5-15-2024		725,000		755,813
OI European Group BV 144A		4.00		3-15-2023		1,100,000		1,039,500
								3,823,376

Metals & Mining : 0.41%
ArcelorMittal SA		6.13		6-1-2025		275,000		297,880
Glencore Finance Canada Limited 144A		4.25		10-25-2022		750,000		750,263
Vale Overseas Limited		4.38		1-11-2022		750,000		763,500
								1,811,643


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


Security name	Interest rate			Maturity date	Principal		Value
Telecommunication Services : 0.44%

Diversified Telecommunication Services : 0.30%
Intelsat Luxembourg SA		7.75	%	6-1-2021	$	1,000,000	$	950,000
Virgin Media Finance plc 144A		6.38		4-15-2023		365,000		375,038
								1,325,038

Wireless Telecommunication Services : 0.14%
Globo Communicacoes Participacoes SA 144A		4.88		4-11-2022		595,000		589,800

Utilities : 0.15%

Electric Utilities : 0.15%
Comision Federal de Electricidad 144A		4.88		5-26-2021		650,000		664,625

Total Yankee Corporate Bonds and Notes (Cost $40,918,236)								40,376,599

	Yield
Short-Term Investments : 2.98%

Investment Companies : 2.98%
Wells Fargo Government Money Market Fund Select Class (l)(u)		1.83				13,113,484		13,113,484

Total Short-Term Investments (Cost $13,113,484)								13,113,484


Total investments in securities (Cost $639,999,797)		141.88	%					624,675,139
Other assets and liabilities, net		(41.88	)					(184,406,458	)

Total net assets		100.00	%				$	440,268,681

±	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.

±±	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.

¥	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.

(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.

(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.

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


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


LIBOR				London Interbank Offered Rate
MXN				Mexican peso
MYR				Malaysian ringgit
NZD				New Zealand dollar
PEN				Peruvian sol
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		108,957,248		121,495,014		13,113,484	$	13,113,484		2.98	%

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

Notes to Portfolio of investments – July 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 at Wells Fargo Funds Management, LLC.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On July 31, 2018, such fair value pricing was not used in pricing foreign securities.

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. 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.

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.

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, 2018:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets Investments in :
Agency securities	$	0	$	7,679,268	$	0	$	7,679,268
Asset-backed securities		0		4,221,163		0		4,221,163
Common stocks
Materials		997		0		0		997
Corporate bonds and notes		0		335,713,463		0		335,713,463
Foreign corporate bonds and notes		0		18,838,481		0		18,838,481
Foreign government bonds		0		99,238,427		0		99,238,427
Loans		0		74,062,769		12,973,973		87,036,742
Non-agency mortgage-backed securities		0		18,256,816		0		18,256,816
Rights
Utilities		0		199,699		0		199,699
Yankee corporate bonds and notes		0		40,376,599		0		40,376,599
Short-term investments
Investment companies		13,113,484		0		0		13,113,484

Total assets	$	13,114,481	$	598,586,685	$	12,973,973	$	624,675,139

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At July 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			16,520			0			16,520
Realized gains (losses)		0			(48,598	)		0			(48,598	)
Change in unrealized gains (losses)		(837	)		(456,272	)		602,164			145,055
Purchases		0			3,004,091			0			3,004,091
Sales		0			(9,108,503	)		(609,457	)		(9,717,960	)
Transfers into Level 3		0			3,376,029			0			3,376,029
Transfers out of Level 3		(699,163	)		(4,736,029	)		0			(5,435,192	)

Balance as of July 31, 2018	$	0		$	12,973,973		$	0		$	12,973,973

Change in unrealized gains (losses) relating to securities still held at July 31, 2018	$	0		$	(31,271	)	$	0		$	(31,271	)

The loan 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.

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 24, 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:		September 24, 2018




By:		/s/ Jeremy DePalma
		Jeremy DePalma Treasurer

Date:		September 24, 2018