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: 811-21331

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)

Alexander Kymn

Wells Fargo Funds Management, LLC

525 Market Street, 12^th Floor, San Francisco, CA 94105

(Name and address of agent for service)

Registrant’s telephone number, including area code: 800-222-8222

Date of fiscal year end: October 31

Registrant is making a filing for Wells Fargo Multi-Sector Income Fund.

Date of reporting period: January 31, 2019

ITEM 1.

INVESTMENTS


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Agency Securities : 1.27%
FHLMC (5 Year Treasury Constant Maturity +2.07%) ±		3.53	%	9-1-2032	$	797,819	$	823,897
FHLMC		8.50		7-1-2028		27,712		31,279
FHLMC Series 1383 (1 Year Treasury Constant Maturity +2.25%) ±		4.61		2-1-2037		168,234		177,425
FHLMC Series 196 Class A (1 Month LIBOR +0.80%) ±		3.31		12-15-2021		3,788		3,802
FHLMC Series 2011-K16 Class B 144A±±		4.61		11-25-2046		1,000,000		1,036,877
FHLMC Series 2012-K17 Class B 144A±±		4.34		12-25-2044		675,000		697,502
FHLMC Series 2012-K18 Class B 144A±±		4.26		1-25-2045		810,000		834,626
FHLMC Series 2012-K711 Class B 144A±±		3.54		8-25-2045		264,000		263,928
FHLMC Series 2013-K30 Class B 144A±±		3.56		6-25-2045		700,000		704,810
FHLMC Series 2390 Class FD (1 Month LIBOR +0.45%) ±		2.96		12-15-2031		16,246		16,352
FHLMC Series 2567 Class FH (1 Month LIBOR +0.40%) ±		2.91		2-15-2033		47,011		46,381
FHLMC Series K007 Class X1 ±±(c)		1.03		4-25-2020		750,174		6,972
FHLMC Series K016 Class X1 ±±(c)		1.48		10-25-2021		338,277		11,584
FHLMC Series K020 Class X1 ±±(c)		1.41		5-25-2022		6,279,149		242,449
FNMA (6 Month LIBOR +1.64%) ±		4.14		9-1-2037		46,696		48,224
FNMA		6.00		4-1-2033		58,040		59,364
FNMA		7.50		2-1-2030		20,036		20,120
FNMA		7.50		9-1-2030		26,210		26,320
FNMA Series 1996-46 Class FA (1 Month LIBOR +0.50%) ±		3.01		8-25-2021		1,551		1,456
FNMA Series 1997-20 Class IO ±±(c)		1.84		3-25-2027		385,290		8,206
FNMA Series 2001-25 Class Z		6.00		6-25-2031		78,845		84,984
FNMA Series 2001-35 Class F (1 Month LIBOR +0.60%) ±		3.11		7-25-2031		3,849		3,905
FNMA Series 2001-57 Class F (1 Month LIBOR +0.50%) ±		3.01		6-25-2031		3,875		3,895
FNMA Series 2002-77 Class FH (1 Month LIBOR +0.40%) ±		2.91		12-18-2032		27,438		27,458
FNMA Series 2002-97 Class FR (1 Month LIBOR +0.55%) ±		3.06		1-25-2033		6,660		6,743
FNMA Series G91-16 Class F (1 Month LIBOR +0.45%) ±		2.96		6-25-2021		2,934		2,943
FNMA Series G92-17 Class F (1 Month LIBOR +1.05%) ±		3.56		3-25-2022		14,385		14,525
GNMA		6.50		6-15-2028		20,159		21,911

Total Agency Securities (Cost $4,987,569)								5,227,938

Asset-Backed Securities : 0.84%
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18		3-25-2033		139,764		139,179
Bear Stearns Asset Backed Securities Series 2002-2 Class A1 (1 Month LIBOR +0.66%) ±		3.17		10-25-2032		140,009		140,033
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.15		2-25-2034		81,314		83,467
CVS Pass-Through Trust Series T		6.04		12-10-2028		456,605		490,668
Five Guys Funding LLC Series 17-1A Class A2 144A		4.60		7-25-2047		992,500		1,014,441
Mesa Trust Asset Backed Certificates Series 2001-5 Class A (1 Month LIBOR +0.80%) 144A±		3.31		12-25-2031		10,392		10,253
MMAF Equipment Finance LLC Series 2017-AA Class A4 144A		2.41		8-16-2024		170,000		167,317
Saxon Asset Securities Trust Series 2002-1 Class AF5		5.81		12-25-2030		114,103		115,574
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		329,939		334,550
Structured Asset Securities Corporation Series 1998-2 Class A (1 Month LIBOR +0.52%) ±		3.03		2-25-2028		56,096		55,739
Structured Asset Securities Corporation Series 2002-9 Class A2 (1 Month LIBOR +0.60%) ±		3.11		10-25-2027		31,928		31,537
Student Loan Consolidation Center Series 2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.73		10-25-2027		373,753		375,340
World Financial Network Credit Card Master Trust Series 2016-C Class M		1.98		8-15-2023		500,000		495,608

Total Asset-Backed Securities (Cost $3,467,334)								3,453,706

Common Stocks : 0.00%

Materials : 0.00%

Chemicals : 0.00%
LyondellBasell Industries NV Class A						9		783

Total Common Stocks (Cost $779)							$	783


1


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Corporate Bonds and Notes : 76.45%

Communication Services : 11.60%

Diversified Telecommunication Services : 1.07%
AT&T Incorporated		3.80	%	3-15-2022	$	750,000		761,700
GCI Incorporated		6.75		6-1-2021		1,000,000		1,003,750
Level 3 Financing Incorporated		5.13		5-1-2023		975,000		966,469
Level 3 Financing Incorporated		5.38		8-15-2022		300,000		302,340
Level 3 Financing Incorporated		5.38		1-15-2024		700,000		696,500
Level 3 Financing Incorporated		5.63		2-1-2023		500,000		502,500
Level 3 Financing Incorporated		6.13		1-15-2021		175,000		175,438

								4,408,697

Entertainment : 0.40%
Live Nation Entertainment Incorporated 144A		4.88		11-1-2024		1,400,000		1,379,000
Live Nation Entertainment Incorporated 144A		5.63		3-15-2026		250,000		252,500

								1,631,500

Media : 8.37%
CCO Holdings LLC 144A		4.00		3-1-2023		100,000		97,535
CCO Holdings LLC 144A		5.00		2-1-2028		150,000		142,500
CCO Holdings LLC		5.13		2-15-2023		100,000		101,000
CCO Holdings LLC 144A		5.13		5-1-2027		450,000		435,375
CCO Holdings LLC		5.25		9-30-2022		1,250,000		1,263,656
CCO Holdings LLC 144A		5.38		5-1-2025		3,550,000		3,568,815
CCO Holdings LLC 144A		5.50		5-1-2026		215,000		214,463
CCO Holdings LLC		5.75		9-1-2023		50,000		51,000
CCO Holdings LLC 144A		5.75		2-15-2026		3,375,000		3,434,063
CCO Holdings LLC 144A		5.88		4-1-2024		1,250,000		1,281,550
Cinemark USA Incorporated		4.88		6-1-2023		450,000		445,500
CSC Holdings LLC 144A		5.38		7-15-2023		1,395,000		1,408,950
CSC Holdings LLC 144A		5.38		2-1-2028		425,000		408,531
CSC Holdings LLC 144A		5.50		5-15-2026		1,275,000		1,262,250
CSC Holdings LLC 144A		7.75		7-15-2025		2,030,000		2,126,425
CSC Holdings LLC		8.63		2-15-2019		383,000		383,479
Dish Direct Broadcast Satellite Corporation		7.75		7-1-2026		450,000		387,563
Dish Network Corporation		3.38		8-15-2026		1,300,000		1,104,350
EMI Music Publishing Group 144A		7.63		6-15-2024		1,425,000		1,511,469
Gray Television Incorporated 144A		5.13		10-15-2024		450,000		437,344
Gray Television Incorporated 144A		5.88		7-15-2026		3,875,000		3,807,188
Gray Television Incorporated 144A		7.00		5-15-2027		325,000		337,870
Interpublic Group of Companies		4.00		3-15-2022		750,000		752,780
Lamar Media Corporation		5.38		1-15-2024		375,000		383,438
Lamar Media Corporation 144A%%		5.75		2-1-2026		100,000		103,560
National CineMedia LLC		6.00		4-15-2022		1,950,000		1,964,625
Nexstar Broadcasting Group Incorporated 144A		6.13		2-15-2022		1,025,000		1,032,688
Nielsen Finance LLC 144A		5.00		4-15-2022		175,000		174,738
Outfront Media Capital Corporation		5.63		2-15-2024		20,000		20,225
Outfront Media Capital Corporation		5.88		3-15-2025		775,000		782,750
Salem Media Group Incorporated 144A		6.75		6-1-2024		2,200,000		1,980,000
The E.W. Scripps Company 144A		5.13		5-15-2025		2,460,000		2,349,300
Time Warner Cable Incorporated		4.00		1-15-2022		750,000		761,742

								34,516,722

Wireless Telecommunication Services : 1.76%
Sprint Capital Corporation		6.88		11-15-2028		1,025,000		1,018,594
Sprint Capital Corporation		8.75		3-15-2032		1,625,000		1,783,438
Sprint Communications Incorporated		7.00		8-15-2020		225,000		233,438
T-Mobile USA Incorporated		4.00		4-15-2022		650,000		644,313


		2


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Wireless Telecommunication Services (continued)
T-Mobile USA Incorporated		4.50	%	2-1-2026	$	125,000	$	121,719
T-Mobile USA Incorporated		4.75		2-1-2028		125,000		119,844
T-Mobile USA Incorporated		5.13		4-15-2025		425,000		429,250
T-Mobile USA Incorporated		5.38		4-15-2027		1,500,000		1,511,250
T-Mobile USA Incorporated		6.00		3-1-2023		300,000		307,500
T-Mobile USA Incorporated		6.38		3-1-2025		975,000		1,011,563
T-Mobile USA Incorporated		6.50		1-15-2024		80,000		82,800

								7,263,709

Consumer Discretionary : 7.67%

Auto Components : 1.40%
Allison Transmission Incorporated 144A		4.75		10-1-2027		650,000		604,500
Allison Transmission Incorporated 144A		5.00		10-1-2024		2,250,000		2,216,250
Cooper Tire & Rubber Company		7.63		3-15-2027		1,710,000		1,808,325
Cooper Tire & Rubber Company		8.00		12-15-2019		600,000		617,250
Goodyear Tire & Rubber Company		8.75		8-15-2020		468,000		499,590

								5,745,915

Distributors : 0.26%
LKQ Corporation		4.75		5-15-2023		1,075,000		1,080,375

Diversified Consumer Services : 1.44%
Carriage Services Incorporated 144A		6.63		6-1-2026		575,000		576,438
Service Corporation International		4.63		12-15-2027		650,000		633,750
Service Corporation International		5.38		5-15-2024		100,000		102,125
Service Corporation International		7.50		4-1-2027		3,400,000		3,706,000
Service Corporation International		8.00		11-15-2021		850,000		924,375

								5,942,688

Hotels, Restaurants & Leisure : 1.43%
CCM Merger Incorporated 144A		6.00		3-15-2022		3,533,000		3,568,330
Hilton Domestic Operating Company Incorporated 144A		5.13		5-1-2026		425,000		428,188
Wyndham Hotels & Resorts Company 144A		5.38		4-15-2026		1,875,000		1,875,000

								5,871,518

Internet & Direct Marketing Retail : 0.19%
Expedia Incorporated		5.95		8-15-2020		750,000		778,623

Multiline Retail : 0.14%
Macy’s Retail Holdings Incorporated		3.88		1-15-2022		600,000		589,427

Specialty Retail : 2.34%
Advance Auto Parts Incorporated		4.50		1-15-2022		600,000		610,378
Asbury Automotive Group Incorporated		6.00		12-15-2024		1,175,000		1,180,875
Group 1 Automotive Incorporated		5.00		6-1-2022		200,000		198,250
Group 1 Automotive Incorporated 144A		5.25		12-15-2023		1,500,000		1,440,000
Lithia Motors Incorporated 144A		5.25		8-1-2025		945,000		911,925
Penske Auto Group Incorporated		3.75		8-15-2020		540,000		536,625
Penske Auto Group Incorporated		5.38		12-1-2024		2,150,000		2,123,125
Penske Auto Group Incorporated		5.75		10-1-2022		1,155,000		1,172,325
Sonic Automotive Incorporated		5.00		5-15-2023		849,000		808,673
Sonic Automotive Incorporated		6.13		3-15-2027		775,000		676,188

								9,658,364

Textiles, Apparel & Luxury Goods : 0.47%
The William Carter Company		5.25		8-15-2021		600,000		601,500


3


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Textiles, Apparel & Luxury Goods (continued)
Wolverine World Wide Incorporated 144A		5.00	%	9-1-2026	$	1,411,000	$	1,337,628

								1,939,128

Consumer Staples : 1.57%

Beverages : 0.31%
Anheuser-Busch InBev Finance Incorporated		3.75		1-15-2022		600,000		611,031
Cott Beverages Incorporated 144A		5.50		4-1-2025		675,000		668,250

								1,279,281

Food Products : 1.00%
B&G Foods Incorporated		4.63		6-1-2021		300,000		301,590
B&G Foods Incorporated		5.25		4-1-2025		1,050,000		1,029,525
Darling Ingredients Incorporated		5.38		1-15-2022		180,000		180,900
Kraft Heinz Foods Company		3.50		6-6-2022		750,000		751,293
Lamb Weston Holdings Incorporated 144A		4.63		11-1-2024		175,000		174,125
Pilgrim’s Pride Corporation 144A		5.75		3-15-2025		1,305,000		1,278,900
Pilgrim’s Pride Corporation 144A		5.88		9-30-2027		150,000		144,750
Prestige Brands Incorporated 144A		6.38		3-1-2024		280,000		278,600

								4,139,683

Household Products : 0.09%
Central Garden & Pet Company		5.13		2-1-2028		225,000		209,813
Spectrum Brands Incorporated		5.75		7-15-2025		50,000		49,265
Spectrum Brands Incorporated		6.63		11-15-2022		125,000		128,125

								387,203

Tobacco : 0.17%
Reynolds American Incorporated		6.88		5-1-2020		650,000		677,577

Energy : 17.40%

Energy Equipment & Services : 5.87%
Bristow Group Incorporated		6.25		10-15-2022		3,855,000		1,792,575
Bristow Group Incorporated 144A		8.75		3-1-2023		775,000		648,094
Diamond Offshore Drilling Incorporated		4.88		11-1-2043		1,325,000		814,875
Era Group Incorporated		7.75		12-15-2022		2,350,000		2,303,000
Hilcorp Energy Company 144A		5.00		12-1-2024		1,450,000		1,377,500
Hilcorp Energy Company 144A		5.75		10-1-2025		1,875,000		1,823,438
Hilcorp Energy Company 144A		6.25		11-1-2028		350,000		341,250
Hornbeck Offshore Services Incorporated		1.50		9-1-2019		4,750,000		3,800,000
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		1,325,000		821,500
NGPL PipeCo LLC 144A		4.38		8-15-2022		350,000		352,919
NGPL PipeCo LLC 144A		4.88		8-15-2027		550,000		544,500
NGPL PipeCo LLC 144A		7.77		12-15-2037		6,435,000		7,671,381
Oceaneering International Incorporated		6.00		2-1-2028		1,250,000		1,068,750
USA Compression Partners LP		6.88		4-1-2026		850,000		850,000

								24,209,782

Oil, Gas & Consumable Fuels : 11.53%
Carrizo Oil & Gas Incorporated		8.25		7-15-2025		800,000		824,000
Cheniere Corpus Christi Holdings LLC		5.13		6-30-2027		900,000		907,875
Cheniere Energy Partners LP		5.25		10-1-2025		3,925,000		3,944,586
Cheniere Energy Partners LP 144A		5.63		10-1-2026		300,000		300,708
DCP Midstream Operating LP		2.70		4-1-2019		725,000		724,058
Denbury Resources Incorporated		6.38		8-15-2021		3,209,000		2,647,425
Denbury Resources Incorporated 144A		9.25		3-31-2022		676,000		664,170
El Paso LLC		6.50		4-1-2020		750,000		776,899


		4


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels (continued)
Energy Transfer Partners LP		5.20	%	2-1-2022	$	750,000	$	779,481
EnLink Midstream Partners LP		4.40		4-1-2024		3,200,000		3,062,000
EnLink Midstream Partners LP		4.85		7-15-2026		600,000		562,500
Exterran Partners LP		6.00		4-1-2021		2,550,000		2,514,938
Gulfport Energy Corporation		6.00		10-15-2024		150,000		141,000
Kinder Morgan Energy Partners LP		3.95		9-1-2022		750,000		760,070
Kinder Morgan Incorporated		6.50		9-15-2020		285,000		298,827
Kinder Morgan Incorporated		7.42		2-15-2037		800,000		893,816
Murphy Oil Corporation		4.45		12-1-2022		1,250,000		1,228,595
Murphy Oil Corporation		5.75		8-15-2025		185,000		185,685
Murphy Oil Corporation		6.88		8-15-2024		850,000		888,110
Nabors Industries Incorporated		0.75		1-15-2024		1,425,000		955,641
Nabors Industries Incorporated		4.63		9-15-2021		750,000		709,688
Phillips 66		4.30		4-1-2022		625,000		647,729
Pioneer Natural Resources Company		3.95		7-15-2022		750,000		759,849
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		3,500,000		3,561,250
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		3,074,000		3,289,180
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		240,000		273,528
Rose Rock Midstream LP		5.63		7-15-2022		1,300,000		1,235,000
Rose Rock Midstream LP		5.63		11-15-2023		825,000		767,250
SemGroup Corporation		6.38		3-15-2025		3,425,000		3,211,965
SemGroup Corporation		7.25		3-15-2026		1,000,000		955,000
Southern Star Central Corporation 144A		5.13		7-15-2022		925,000		904,188
Southwestern Energy Company		7.50		4-1-2026		400,000		412,000
Southwestern Energy Company		7.75		10-1-2027		400,000		412,000
Summit Midstream Holdings LLC		5.75		4-15-2025		225,000		210,938
Tallgrass Energy Partners LP 144A		5.50		9-15-2024		5,200,000		5,213,000
Tesoro Logistics LP		6.38		5-1-2024		450,000		468,000
Ultra Resources Incorporated 144A		7.13		4-15-2025		2,425,000		703,250
Williams Partners LP		3.35		8-15-2022		750,000		743,110

								47,537,309

Financials : 8.03%

Banks : 2.38%
Bank of America Corporation		5.70		1-24-2022		250,000		268,385
Citigroup Incorporated		4.13		3-9-2021		60,000		60,150
Citigroup Incorporated		4.50		1-14-2022		250,000		259,905
Citigroup Incorporated		6.13		3-9-2028		75,000		79,500
City National Bank		5.38		7-15-2022		500,000		528,868
International Bank for Reconstruction & Development		7.50		6-9-2021		5,000,000		1,404,776
International Bank for Reconstruction & Development		8.25		6-22-2023		9,000,000		2,470,541
International Finance Corporation		7.50		5-9-2022		14,000,000		3,984,426
JPMorgan Chase & Company		3.38		5-1-2023		750,000		748,839

								9,805,390

Capital Markets : 0.51%
ACE Securities Corporation (1 Month LIBOR +2.63%) ±		5.14		6-25-2033		147,438		147,350
Blackstone Holdings Finance Company LLC 144A		5.88		3-15-2021		750,000		787,210
Goldman Sachs Group Incorporated		5.75		1-24-2022		750,000		804,621
MSCI Incorporated 144A		5.38		5-15-2027		350,000		357,875

								2,097,056

Consumer Finance : 1.43%
Ally Financial Incorporated		8.00		3-15-2020		880,000		920,700
Discover Financial Services		5.20		4-27-2022		750,000		780,689
FirstCash Incorporated 144A		5.38		6-1-2024		575,000		575,000
General Motors Financial Company Incorporated		3.70		5-9-2023		750,000		728,671
Navient Corporation		8.00		3-25-2020		930,000		968,363


5


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Consumer Finance (continued)
Springleaf Finance Corporation		6.00	%	6-1-2020	$	1,025,000	$	1,041,656
Springleaf Finance Corporation		7.13		3-15-2026		925,000		881,063

								5,896,142

Diversified Financial Services : 1.99%
ING US Incorporated		5.50		7-15-2022		327,000		344,913
LPL Holdings Incorporated 144A		5.75		9-15-2025		7,500,000		7,374,750
Vantiv LLC 144A		4.38		11-15-2025		500,000		479,990

								8,199,653

Insurance : 1.72%
American International Group Incorporated		4.88		6-1-2022		750,000		790,399
AmWINS Group Incorporated 144A		7.75		7-1-2026		1,125,000		1,122,188
Hartford Financial Services Group Incorporated		5.13		4-15-2022		650,000		684,618
HUB International Limited 144A		7.00		5-1-2026		500,000		485,000
Liberty Mutual Group Incorporated 144A		4.57		2-1-2029		750,000		762,485
ProAssurance Corporation		5.30		11-15-2023		750,000		789,830
Prudential Financial Incorporated (3 Month LIBOR +2.38%) ±		4.50		9-15-2047		750,000		690,750
USIS Merger Subordinate Incorporated 144A		6.88		5-1-2025		1,175,000		1,127,648
W.R. Berkley Corporation		4.63		3-15-2022		650,000		669,648

								7,122,566

Health Care : 7.94%

Biotechnology : 0.18%
Amgen Incorporated		3.63		5-15-2022		750,000		761,318

Health Care Equipment & Supplies : 1.41%
Hill-Rom Holdings Incorporated 144A		5.00		2-15-2025		400,000		399,000
Hill-Rom Holdings Incorporated 144A		5.75		9-1-2023		200,000		206,000
Hologic Incorporated 144A		4.38		10-15-2025		1,925,000		1,890,581
Hologic Incorporated 144A		4.63		2-1-2028		225,000		217,125
Kinetics Concepts Incorporated 144A		7.88		2-15-2021		1,425,000		1,453,500
Surgery Center Holdings Incorporated 144A		6.75		7-1-2025		500,000		462,500
Surgery Center Holdings Incorporated 144A		8.88		4-15-2021		1,150,000		1,173,000

								5,801,706

Health Care Providers & Services : 5.33%
Acadia Healthcare Company Incorporated		6.50		3-1-2024		190,000		187,150
Centene Corporation 144A		5.38		6-1-2026		575,000		596,016
Centene Corporation		6.13		2-15-2024		325,000		340,438
CHS Incorporated		5.13		8-1-2021		2,350,000		2,258,938
Coventry Health Care Incorporated		5.45		6-15-2021		750,000		780,511
Davita Incorporated		5.00		5-1-2025		950,000		914,375
Express Scripts Holding Company		3.90		2-15-2022		665,000		675,883
HCA Incorporated		5.25		6-15-2026		325,000		342,469
HealthSouth Corporation		5.75		9-15-2025		575,000		580,750
MEDNAX Incorporated 144A		5.25		12-1-2023		475,000		476,781
MEDNAX Incorporated 144A		6.25		1-15-2027		375,000		376,406
MPH Acquisition Holdings LLC 144A		7.13		6-1-2024		2,861,000		2,840,973
MPT Operating Partnership LP		5.00		10-15-2027		1,100,000		1,070,850
MPT Operating Partnership LP		5.25		8-1-2026		1,575,000		1,582,875
MPT Operating Partnership LP		6.38		3-1-2024		110,000		114,950
NVA Holdings Company 144A		6.88		4-1-2026		200,000		190,940
Polaris Intermediate Corporation 144A		8.50		12-1-2022		475,000		456,000
Select Medical Corporation		6.38		6-1-2021		3,050,000		3,065,250
Tenet Healthcare Corporation		4.63		7-15-2024		436,000		427,053
Tenet Healthcare Corporation		6.00		10-1-2020		700,000		722,960
Vizient Incorporated 144A		10.38		3-1-2024		3,550,000		3,847,313


		6


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Health Care Providers & Services (continued)
WellCare Health Plans Incorporated 144A		5.38	%	8-15-2026	$	125,000	$	127,813

								21,976,694

Health Care Technology : 0.58%
Change Healthcare Holdings Incorporated 144A		5.75		3-1-2025		1,950,000		1,867,125
Quintiles IMS Holdings Incorporated 144A		4.88		5-15-2023		300,000		303,375
Quintiles IMS Holdings Incorporated 144A		5.00		10-15-2026		225,000		226,125

								2,396,625

Life Sciences Tools & Services : 0.26%
Charles River Laboratories Incorporated 144A		5.50		4-1-2026		275,000		281,188
Life Technologies Corporation		6.00		3-1-2020		750,000		770,896

								1,052,084

Pharmaceuticals : 0.18%
Watson Pharmaceuticals Incorporated		3.25		10-1-2022		750,000		742,119

Industrials : 5.14%

Aerospace & Defense : 0.71%
BAE Systems Holdings Incorporated 144A		3.80		10-7-2024		1,000,000		1,005,733
L-3 Communications Corporation		4.95		2-15-2021		750,000		771,209
RBS Global & Rexnord LLC 144A		4.88		12-15-2025		1,200,000		1,158,000

								2,934,942

Airlines : 0.85%
Aviation Capital Group Corporation 144A		6.75		4-6-2021		1,100,000		1,163,012
BBA US Holdings Incorporated 144A		5.38		5-1-2026		2,025,000		2,025,000
Delta Air Lines Incorporated		4.75		11-7-2021		314,041		317,747

								3,505,759

Commercial Services & Supplies : 2.62%
Advanced Disposal Services Incorporated 144A		5.63		11-15-2024		1,750,000		1,754,375
Aramark Services Incorporated 144A		5.00		2-1-2028		225,000		219,656
Aramark Services Incorporated		5.13		1-15-2024		545,000		550,673
Covanta Holding Corporation		5.88		3-1-2024		1,530,000		1,526,175
Covanta Holding Corporation		5.88		7-1-2025		515,000		504,700
Covanta Holding Corporation		6.00		1-1-2027		1,150,000		1,101,125
KAR Auction Services Incorporated 144A		5.13		6-1-2025		4,950,000		4,769,721
Waste Pro USA Incorporated 144A		5.50		2-15-2026		375,000		364,406

								10,790,831

Electrical Equipment : 0.12%
Resideo Funding Incorporated 144A		6.13		11-1-2026		500,000		515,000

Industrial Conglomerates : 0.05%
General Electric Capital Corporation		4.65		10-17-2021		187,000		191,155

Machinery : 0.50%
Stevens Holding Company Incorporated 144A		6.13		10-1-2026		1,425,000		1,439,792
Trimas Corporation 144A		4.88		10-15-2025		631,000		612,070

								2,051,862


7


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Professional Services : 0.13%
Verisk Analytics Incorporated		5.80	%	5-1-2021	$	530,000	$	555,849

Road & Rail : 0.16%
TTX Company 144A		2.60		6-15-2020		650,000		643,369

Information Technology : 5.50%

Communications Equipment : 0.37%
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		825,000		779,625
Motorola Solutions Incorporated		3.75		5-15-2022		750,000		750,004

								1,529,629

Electronic Equipment, Instruments & Components : 0.15%
Keysight Technologies		4.60		4-6-2027		600,000		606,978

IT Services : 2.01%
Cardtronics Incorporated 144A		5.50		5-1-2025		2,261,000		2,156,429
First Data Corporation 144A		5.00		1-15-2024		950,000		970,781
First Data Corporation 144A		5.38		8-15-2023		332,000		338,433
First Data Corporation 144A		5.75		1-15-2024		375,000		385,313
Gartner Incorporated 144A		5.13		4-1-2025		1,525,000		1,517,375
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13		5-1-2021		550,000		554,125
Infor US Incorporated		6.50		5-15-2022		550,000		559,625
Zayo Group LLC 144A		5.75		1-15-2027		625,000		603,869
Zayo Group LLC		6.38		5-15-2025		1,218,000		1,189,073

								8,275,023

Software : 0.25%
CDK Global Incorporated		5.00		10-15-2024		225,000		224,438
CDK Global Incorporated		5.88		6-15-2026		175,000		178,719
Fair Isaac Corporation 144A		5.25		5-15-2026		175,000		175,875
Symantec Corporation 144A		5.00		4-15-2025		475,000		472,814

								1,051,846

Technology Hardware, Storage & Peripherals : 2.72%
Dell International LLC 144A		5.88		6-15-2021		1,000,000		1,016,222
Dell International LLC 144A		7.13		6-15-2024		4,525,000		4,772,072
Hewlett-Packard Company		4.05		9-15-2022		750,000		762,869
NCR Corporation		5.88		12-15-2021		5,000		5,019
NCR Corporation		6.38		12-15-2023		4,650,000		4,661,625

								11,217,807

Materials : 2.50%

Chemicals : 0.28%
Dow Chemical Company		4.13		11-15-2021		750,000		768,204
Valvoline Incorporated		5.50		7-15-2024		375,000		380,625

								1,148,829

Containers & Packaging : 2.13%
Ball Corporation		4.88		3-15-2026		575,000		585,422
Ball Corporation		5.00		3-15-2022		25,000		25,875
Ball Corporation		5.25		7-1-2025		190,000		199,263
Berry Global Incorporated		5.13		7-15-2023		350,000		350,991
Berry Global Incorporated		6.00		10-15-2022		215,000		219,838
Crown Americas Capital Corporation V		4.25		9-30-2026		100,000		95,000
Crown Americas Capital Corporation VI		4.75		2-1-2026		975,000		953,063
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		35,000		38,194


		8


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Containers & Packaging (continued)
Flex Acquisition Company Incorporated 144A		6.88	%	1-15-2025	$	1,500,000	$	1,402,500
Flex Acquisition Company Incorporated 144A		7.88		7-15-2026		275,000		261,250
Owens-Brockway Glass Container Incorporated 144A		5.88		8-15-2023		325,000		336,375
Owens-Illinois Incorporated 144A		6.38		8-15-2025		3,100,000		3,239,500
Reynolds Group Issuer Incorporated 144A		5.13		7-15-2023		675,000		676,249
Sealed Air Corporation 144A		5.25		4-1-2023		325,000		330,688
Silgan Holdings Incorporated		5.50		2-1-2022		75,000		75,188

								8,789,396

Metals & Mining : 0.09%
Indalex Holdings Corporation (a)†		11.50		2-1-2020		3,170,000		0
Novelis Corporation 144A		5.88		9-30-2026		400,000		386,500

								386,500

Real Estate : 4.21%

Equity REITs : 4.21%
Alexandria Real Estate Company		4.60		4-1-2022		650,000		670,839
American Tower Corporation		5.90		11-1-2021		650,000		690,056
CoreCivic Incorporated		5.00		10-15-2022		575,000		554,875
DDR Corporation		4.70		6-1-2027		600,000		609,192
Equinix Incorporated		5.75		1-1-2025		1,375,000		1,412,813
Equinix Incorporated		5.88		1-15-2026		425,000		439,663
ESH Hospitality Incorporated 144A		5.25		5-1-2025		1,750,000		1,730,050
Essex Portfolio LP		3.63		8-15-2022		750,000		752,912
Iron Mountain Incorporated 144A		5.25		3-15-2028		675,000		627,750
Iron Mountain Incorporated 144A		5.38		6-1-2026		150,000		142,688
Iron Mountain Incorporated		6.00		8-15-2023		2,500,000		2,562,500
Omega HealthCare Investors Incorporated		4.50		4-1-2027		600,000		585,049
Sabra Health Care LP		5.38		6-1-2023		900,000		895,500
Sabra Health Care LP		5.50		2-1-2021		1,225,000		1,237,250
SBA Communications Corporation		4.00		10-1-2022		225,000		222,188
SBA Communications Corporation		4.88		7-15-2022		640,000		648,192
The Geo Group Incorporated		5.13		4-1-2023		800,000		730,000
The Geo Group Incorporated		5.88		1-15-2022		600,000		584,250
The Geo Group Incorporated		5.88		10-15-2024		840,000		760,200
The Geo Group Incorporated		6.00		4-15-2026		184,000		164,450
Ventas Realty LP		4.25		3-1-2022		650,000		663,208
Welltower Incorporated		5.25		1-15-2022		650,000		676,047

								17,359,672

Utilities : 4.89%

Electric Utilities : 0.50%
Great Plains Energy Incorporated		4.85		6-1-2021		750,000		769,657
NextEra Energy Operating Partners LP 144A		4.25		9-15-2024		175,000		166,740
NextEra Energy Operating Partners LP 144A		4.50		9-15-2027		1,250,000		1,136,719

								2,073,116

Gas Utilities : 0.29%
AmeriGas Partners LP		5.75		5-20-2027		1,000,000		955,000
Suburban Propane Partners LP		5.88		3-1-2027		225,000		212,625

								1,167,625

Independent Power & Renewable Electricity Producers : 3.91%
NSG Holdings LLC 144A		7.75		12-15-2025		4,095,683		4,361,903
Pattern Energy Group Incorporated 144A		5.88		2-1-2024		5,225,000		5,107,438


9


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Independent Power & Renewable Electricity Producers (continued)
TerraForm Global Operating LLC 144A		6.13	%	3-1-2026	$	1,175,000	$	1,122,125
TerraForm Power Operating LLC 144A		4.25		1-31-2023		3,025,000		2,956,938
TerraForm Power Operating LLC 144A		5.00		1-31-2028		675,000		626,906
TerraForm Power Operating LLC 144A		6.63		6-15-2025		1,850,000		1,942,500

								16,117,810

Multi-Utilities : 0.19%
CMS Energy Corporation		5.05		3-15-2022		750,000		785,791

Total Corporate Bonds and Notes (Cost $319,193,664)								315,207,643

Foreign Corporate Bonds and Notes @: 4.84%

Energy : 0.28%

Oil, Gas & Consumable Fuels : 0.28%
Petroleos Mexicanos (MXN) 144A		7.19		9-12-2024		28,200,000		1,157,657

Financials : 4.56%

Banks : 4.50%
European Investment Bank (BRL)		7.25		6-28-2021		9,000,000		2,513,298
European Investment Bank (BRL)		7.50		4-13-2022		9,000,000		2,531,065
European Investment Bank (ZAR)		8.00		5-5-2027		21,000,000		1,551,281
European Investment Bank (ZAR)		8.38		7-29-2022		40,000,000		3,086,729
European Investment Bank (ZAR)		8.75		8-18-2025		20,000,000		1,556,875
European Investment Bank (ZAR)		9.00		3-31-2021		17,400,000		1,355,636
International Bank for Reconstruction & Development (ZAR)		7.00		6-7-2023		15,000,000		1,103,421
KfW (AUD)		5.00		3-19-2024		1,300,000		1,063,259
Landwirtschaftliche Rentenbank (ZAR)		6.00		3-18-2019		35,000,000		2,631,942
Landwirtschaftliche Rentenbank (ZAR)		8.25		5-23-2022		15,000,000		1,151,145

								18,544,651

Diversified Financial Services : 0.06%
AA Bond Company Limited (GBP)		4.25		7-31-2043		200,000		266,472

Total Foreign Corporate Bonds and Notes (Cost $21,046,198)								19,968,780

Foreign Government Bonds @: 21.75%
Colombia (COP)		6.00		4-28-2028		6,800,000,000		2,092,882
Colombia (COP)		7.00		9-11-2019		18,500,000,000		6,039,383
Colombia (COP)		7.50		8-26-2026		22,725,000,000		7,779,847
India (INR)		7.16		5-20-2023		420,000,000		5,899,606
India (INR)		7.80		4-11-2021		435,000,000		6,221,014
Indonesia (IDR)		7.50		8-15-2032		57,000,000,000		3,737,789
Indonesia (IDR)		8.25		5-15-2029		88,615,000,000		6,381,910
Indonesia (IDR)		8.38		9-15-2026		110,000,000,000		7,920,213
Malaysia (MYR)		4.18		7-15-2024		19,850,000		4,903,614
Malaysia (MYR)		4.23		6-30-2031		51,300,000		12,425,684
Mexico (MXN)		5.75		3-5-2026		72,000,000		3,239,242
Mexico (MXN)		8.00		11-7-2047		217,500,000		10,434,222
New Zealand (NZD)		2.75		4-15-2037		1,950,000		1,373,038
New Zealand (NZD)		4.50		4-15-2027		3,085,000		2,520,023
Queensland Treasury (AUD)		5.75		7-22-2024		4,100,000		3,506,717
Republic of Peru (PEN)		6.35		8-12-2028		16,400,000		5,194,731

Total Foreign Government Bonds (Cost $94,913,686)								89,669,915


		10


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Loans : 21.05%

Communication Services : 3.71%

Diversified Telecommunication Services : 0.71%
Level 3 Financing Incorporated (1 Month LIBOR +2.25%) ±		4.76	%	2-22-2024	$	555,420	$	545,006
Telesat Canada (3 Month LIBOR +2.50%) ±		5.31		11-17-2023		2,429,496		2,379,886

								2,924,892

Media : 2.89%
A-L Parent LLC (1 Month LIBOR +3.25%) ±‡		5.75		12-1-2023		3,180,636		3,148,830
Ancestry.com Incorporated (1 Month LIBOR +3.25%) ±		5.75		10-19-2023		5,861,965		5,749,122
CSC Holdings LLC (1 Month LIBOR +2.50%) ±		5.01		1-25-2026		148,875		145,277
Gray Television Incorporated <		0.00		1-2-2026		575,000		566,617
Hubbard Radio LLC (1 Month LIBOR +3.50%) ±<		6.02		3-28-2025		1,565,715		1,538,315
National CineMedia LLC (1 Month LIBOR +3.00%) ±		5.56		6-20-2025		298,500		294,769
Neptune Finco Corporation (1 Month LIBOR +2.25%) ±		4.76		1-15-2026		500,000		481,250

								11,924,180

Wireless Telecommunication Services : 0.11%
Sprint Communications Incorporated (1 Month LIBOR +2.50%) ±‡		5.00		2-2-2024		442,125		431,625

Consumer Discretionary : 4.13%

Auto Components : 0.51%
Allison Transmission Incorporated (1 Month LIBOR +1.75%) ±		4.26		9-23-2022		1,836,180		1,824,245
Belron Finance US LLC (3 Month LIBOR +2.25%) ±‡		4.84		11-7-2024		297,000		292,916

								2,117,161

Distributors : 0.57%
Spin Holdco Incorporated (3 Month LIBOR +3.25%) ±		6.03		11-14-2022		2,435,058		2,374,182

Hotels, Restaurants & Leisure : 2.74%
CCM Merger Incorporated (1 Month LIBOR +2.25%) ±		4.75		8-8-2021		586,767		579,725
Four Seasons Holdings Incorporated (1 Month LIBOR +2.00%) ±		4.50		11-30-2023		892,447		877,016
Greektown Holdings LLC (1 Month LIBOR +2.75%) ±		5.25		4-25-2024		4,937,343		4,910,583
Montreign Operating Company LLC (3 Month LIBOR +8.25%) ±		10.96		1-24-2023		5,333,706		4,933,678

								11,301,002

Household Products : 0.16%
Anastasia Parent LLC Term Loan (1 Month LIBOR +3.75%) ±		6.25		8-11-2025		274,313		259,911
Anchor Glass Container Corporation (1 Month LIBOR +7.75%) ±		10.25		12-7-2024		650,000		395,850

								655,761

Internet & Direct Marketing Retail : 0.06%
Shutterfly Incorporated (1 Month LIBOR +2.75%) ±		5.25		8-17-2024		244,589		238,372

Specialty Retail : 0.09%
ABC Supply Company Incorporated (1 Month LIBOR +2.00%) ±		4.50		10-31-2023		374,048		364,510

Consumer Staples : 0.06%

Food Products : 0.06%
CHG PPC Parent LLC (1 Month LIBOR +2.75%) ±‡		5.25		3-31-2025		124,375		121,577
Prestige Brands Incorporated (1 Month LIBOR +2.00%) ±		4.50		1-26-2024		131,689		129,714

								251,291


11


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Energy : 0.86%

Oil, Gas & Consumable Fuels : 0.86%
Encino Acquisition Partners Holdings LLC (1 Month LIBOR +6.75%) ±‡		9.25	%	10-29-2025	$	600,000	$	574,500
Grizzly Acquisitions Incorporated (3 Month LIBOR +3.25%) ±		6.05		10-1-2025		374,063		371,803
Lucid Energy Group II Borrower LLC (1 Month LIBOR +3.00%) ±		5.52		2-17-2025		223,313		209,467
Traverse Midstream Partners LLC (6 Month LIBOR +4.00%) ±		6.60		9-27-2024		623,438		619,410
Ultra Resources Incorporated (1 Month LIBOR +4.00%) ±		6.50		4-12-2024		2,000,000		1,783,340

								3,558,520

Financials : 3.19%

Capital Markets : 0.82%
Focus Financial Partners LLC (1 Month LIBOR +2.50%) ±		5.00		7-3-2024		448,747		441,680
Global Business Travel Holdings Limited (3 Month LIBOR +2.50%) ±‡		5.11		8-13-2025		149,625		148,503
Neptune Finco Corporation (1 Month LIBOR +2.25%) ±		4.76		7-17-2025		772,253		746,915
Russell Investments US Institutional Holdco Incorporated (1 Month LIBOR +3.25%) ±		5.75		6-1-2023		590,121		581,270
Tortoise Borrower LLC (1 Month LIBOR +3.50%) ±‡		6.00		1-31-2025		199,497		198,999
VFH Parent LLC ‡<		0.00		1-30-2026		250,000		249,533
Victory Capital Holdings Incorporated (3 Month LIBOR +2.75%) ±‡<		5.55		2-12-2025		1,005,148		998,866

								3,365,766

Diversified Consumer Services : 0.01%
TransUnion LLC (1 Month LIBOR +2.00%) ±		4.50		6-19-2025		49,750		49,057

Diversified Financial Services : 1.21%
LPL Holdings Incorporated (1 Month LIBOR +2.25%) ±		4.75		9-23-2024		1,063,636		1,051,011
Nielsen Finance LLC (1 Month LIBOR +2.00%) ±		4.51		10-4-2023		464,354		456,010
Resolute Investment Managers Incorporated (3 Month LIBOR +3.25%) ±‡		6.05		4-30-2022		2,426,763		2,426,763
Resolute Investment Managers Incorporated (3 Month LIBOR +7.50%) ±‡		10.24		4-30-2023		1,090,000		1,073,650

								5,007,434

Insurance : 1.15%
Alliant Holdings Intermediate LLC (1 Month LIBOR +2.75%) ±		5.26		5-9-2025		1,375,353		1,320,917
AmWINS Group Incorporated (1 Month LIBOR +2.75%) ±		5.25		1-25-2024		886,137		867,085
Hub International Limited (3 Month LIBOR +2.75%) ±		5.51		4-25-2025		1,243,750		1,197,495
Solera Holdings Incorporated (1 Month LIBOR +2.75%) ±		5.25		3-3-2023		1,080,205		1,056,667
USI Incorporated (3 Month LIBOR +3.00%) ±		5.80		5-16-2024		296,622		284,016

								4,726,180

Health Care : 2.34%

Health Care Equipment & Supplies : 0.45%
DJO Finance LLC (2 Month LIBOR +3.25%) ±		5.83		6-8-2020		550,050		548,746
Kinetic Concepts Incorporated (3 Month LIBOR +3.25%) ±		6.05		2-2-2024		1,316,195		1,306,324

								1,855,070

Health Care Providers & Services : 0.60%
CHS Incorporated (3 Month LIBOR +3.25%) ±		5.96		1-27-2021		467,320		459,044
MPH Acquisition Holdings LLC (3 Month LIBOR +2.75%) ±		5.55		6-7-2023		445,389		430,495
Press Ganey Holdings Incorporated (1 Month LIBOR +6.50%) ±‡		9.00		10-21-2024		516,856		512,334
Surgery Center Holdings Incorporated (1 Month LIBOR +3.25%) ±		5.75		9-2-2024		520,871		506,417
Team Health Holdings Incorporated (1 Month LIBOR +2.75%) ±‡		5.25		2-6-2024		440,644		395,478
Vizient Incorporated (1 Month LIBOR +2.75%) ±		5.25		2-13-2023		192,929		191,193

								2,494,961


		12


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Health Care Technology : 0.67%
Change Healthcare Holdings Incorporated (1 Month LIBOR +2.75%) ±		5.25	%		3-1-2024	$	643,948	$	629,781
Emerald Bidco Incorporated (1 Month LIBOR +2.75%) ±		5.25			10-23-2023		2,171,350		2,132,440

									2,762,221

Life Sciences Tools & Services : 0.09%
Syneos Health Incorporated (1 Month LIBOR +2.00%) ±		4.50			8-1-2024		362,484		355,989

Pharmaceuticals : 0.53%
Endo Finance LLC (1 Month LIBOR +4.25%) ±		6.75			4-29-2024		292,237		289,072
Valeant Pharmaceuticals International Incorporated (1 Month LIBOR +3.00%) ±		5.51			6-2-2025		1,913,703		1,891,524

									2,180,596

Industrials : 2.61%

Aerospace & Defense : 0.58%
TransDigm Incorporated (1 Month LIBOR +2.50%) ±		5.00			8-22-2024		2,436,594		2,373,389

Commercial Services & Supplies : 0.85%
Advanced Disposal Services Incorporated (1 Month LIBOR +2.25%) ±		4.66			11-10-2023		1,156,534		1,142,621
Advantage Sales & Marketing LLC (1 Month LIBOR +3.25%) ±		5.75			7-25-2021		222,739		193,783
Advantage Sales & Marketing LLC (1 Month LIBOR +6.50%) ±		9.00			7-25-2022		1,250,000		939,063
KAR Auction Services Incorporated (3 Month LIBOR +2.50%) ±		5.31			3-9-2023		152,819		151,196
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +3.25%) ±‡		5.75			5-14-2022		1,129,524		1,089,991

									3,516,654

Communications Equipment : 0.26%
Charter Communications Operating LLC (1 Month LIBOR +2.00%) ±		4.50			4-30-2025		1,089,000		1,073,155

Electrical Equipment : 0.13%
Generac Power Systems Incorporated (1 Month LIBOR +1.75%) ±		4.27			5-31-2023		425,780		422,055
Resideo Funding Incorporated (2 Month LIBOR +2.00%) ±‡		4.63			10-24-2025		100,000		99,750

									521,805

Machinery : 0.57%
Columbus McKinnon Corporation (3 Month LIBOR +2.50%) ±‡		5.30			1-31-2024		866,539		863,290
Gates Global LLC (1 Month LIBOR +2.75%) ±		5.25			4-1-2024		601,624		588,292
Harsco Corporation (1 Month LIBOR +2.25%) ±		4.75			12-6-2024		99,500		98,588
RBS Global Incorporated (1 Month LIBOR +2.00%) ±		4.50			8-21-2024		679,688		673,373
Restaurant Technologies Incorporated (1 Month LIBOR +3.25%) ±		5.75			10-1-2025		125,000		124,166

									2,347,709

Professional Services : 0.18%
TransUnion (1 Month LIBOR +2.00%) ±<		4.50			4-10-2023		746,482		735,949

Trading Companies & Distributors : 0.04%
Avolon TLB Borrower 1 LLC (1 Month LIBOR +2.00%) ±		4.50			1-15-2025		184,127		182,056

Information Technology : 1.53%

Communications Equipment : 0.06%
Ciena Corporation (1 Month LIBOR +2.00%) ±		4.50			9-26-2025		274,313		272,255

Electronic Equipment, Instruments & Components : 0.54%
Dell Incorporated (1 Month LIBOR +2.00%) ±		4.50			9-7-2023		2,243,807		2,210,980


13


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date		Principal		Value
IT Services : 0.74%
Applied Systems Incorporated (1 Month LIBOR +3.00%) ±		5.50	%		9-19-2024	$	395,748	$	385,755
First Data Corporation (1 Month LIBOR +2.00%) ±		4.52			4-26-2024		1,775,000		1,767,794
Infor US Incorporated (1 Month LIBOR +2.75%) ±		5.25			2-1-2022		774,947		769,717
Sophia Holding Finance LP (3 Month LIBOR +3.25%) ±		6.05			9-30-2022		143,182		140,004

									3,063,270

Semiconductors & Semiconductor Equipment : 0.08%
Micron Technology Incorporated (1 Month LIBOR +1.75%) ±		4.25			4-26-2022		341,250		337,128

Software : 0.11%
SS&C Technologies Incorporated (1 Month LIBOR +2.25%) ±		4.75			4-16-2025		449,766		440,334

Materials : 0.94%

Containers & Packaging : 0.94%
Berry Plastics Corporation (2 Month LIBOR +2.00%) ±		4.52			10-1-2022		387,258		383,145
Flex Acquisition Company Incorporated (1 Month LIBOR +3.25%) ±		5.77			6-29-2025		746,250		724,236
Reynolds Group Holdings Incorporated (1 Month LIBOR +2.75%) ±		5.25			2-5-2023		2,443,875		2,406,997
RING Container Technologies (1 Month LIBOR +2.75%) ±		5.25			10-31-2024		371,437		361,842

									3,876,220

Real Estate : 1.31%

Equity REITs : 0.81%
ESH Hospitality Incorporated (1 Month LIBOR +2.00%) ±		4.50			8-30-2023		1,136,592		1,114,712
MGM Growth Properties LLC (1 Month LIBOR +2.00%) ±		4.50			3-21-2025		315,938		310,655
The Geo Group Incorporated (1 Month LIBOR +2.00%) ±		4.50			3-22-2024		1,946,335		1,890,981

									3,316,348

Real Estate Management & Development : 0.50%
Capital Automotive LP (1 Month LIBOR +2.50%) ±		5.00			3-24-2024		1,346,833		1,308,111
Capital Automotive LP (1 Month LIBOR +6.00%) ±		8.50			3-24-2025		767,818		762,060

									2,070,171

Utilities : 0.37%

Independent Power & Renewable Electricity Producers : 0.37%
TerraForm Power Operating LLC (1 Month LIBOR +2.00%) ±		4.50			11-8-2022		668,250		657,946
Vistra Energy Corporation (1 Month LIBOR +2.25%) ±		4.75			12-14-2023		884,906		875,136

									1,533,082

Total Loans (Cost $89,247,274)									86,809,275

Non-Agency Mortgage-Backed Securities : 4.24%
American Money Management Corporation Series 2015-16A Class AR (3 Month LIBOR +1.26%) 144A±		4.06			4-14-2029		500,000		499,302
Argent Securities Incorporated Series 2004-W5 Class AV3B (1 Month LIBOR +0.90%) ±		3.41			4-25-2034		48,920		48,527
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±±		5.66			7-10-2044		547,504		191,069
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±±		5.48			1-15-2049		119,587		119,892
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50			9-25-2035		187,998		200,068
Banc of America Funding Corporation Series 2005 Class D-A1 ±±		4.52			5-25-2035		359,382		375,150
Banc of America Mortgage Securities Series 2003 Class 1A1 ±±		4.08			4-25-2033		259,673		247,762
Benchmark Mortgage Trust Series 2018-B1 Class A2		3.57			1-15-2051		195,000		198,289
Bluemountain CLO Limited Series 2015-2A Class A1R (3 Month LIBOR +0.93%) 144A±		3.71			7-18-2027		500,000		496,789


		14


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
BX Trust 2017 Series A (1 Month LIBOR +1.05%) 144A±		3.56	%	10-15-2032	$	750,000	$	745,516
Centex Home Equity Series 2002-A Class AF6		5.54		1-25-2032		24,659		24,784
Centex Home Equity Series 2004-B Class AF6		4.69		3-25-2034		75,139		76,772
CIFC Funding Limited Series 2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.56		1-20-2028		485,000		480,642
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±±		4.87		9-10-2045		1,000,000		1,019,387
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		3.36		7-15-2032		750,000		744,037
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		3.61		7-15-2030		518,072		517,782
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 (1 Month LIBOR +0.76%) ±		3.27		12-25-2033		12,729		12,727
Commercial Mortgage Trust Series 2012-CR2 Class C ±±		4.83		8-15-2045		1,000,000		1,011,859
Commercial Mortgage Trust Series 2012-LC4 Class A4		3.29		12-10-2044		201,119		201,531
Commercial Mortgage Trust Series 2012-LC4 Class AM		4.06		12-10-2044		500,000		510,898
Commercial Mortgage Trust Series 2012-LC4 Class C ±±		5.54		12-10-2044		500,000		517,178
Countrywide Home Loans Series 2003-48 Class 2A2 ±±		4.57		10-25-2033		50,852		51,646
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±±		3.71		9-25-2032		416,297		403,104
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±±		4.26		6-25-2033		78,848		78,995
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±±		4.22		3-25-2033		19,459		19,271
Crown Point Limited Series 2015-3A Class A1AR (3 Month LIBOR +0.91%) 144A±		3.70		12-31-2027		500,000		497,156
Global Mortgage Securitization Limited Series 2004-A Class A2 (1 Month LIBOR +0.32%) 144A±		2.83		11-25-2032		75,849		71,872
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±±(c)		1.35		8-10-2043		4,993,642		78,778
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±±(c)		2.21		5-10-2045		3,207,472		130,621
GSAA Home Equity Trust Series 2004-5 Class AF5		5.61		6-25-2034		893		889
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 (1 Month LIBOR +0.65%) ±		3.16		4-25-2035		2,346		2,346
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 (1 Month LIBOR +0.30%) 144A±		2.81		3-25-2035		43,112		42,876
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2013-C17 Class B ±±		4.89		1-15-2047		50,000		52,470
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±±		5.47		6-12-2047		1,823		1,822
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		2.59		6-12-2047		1,563		1,560
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±±		5.46		1-15-2049		80,420		80,462
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±±		4.45		7-25-2034		32,499		32,967
JPMorgan Mortgage Trust Series 2004-A3 Class 3A3 ±±		4.01		7-25-2034		39,909		39,253
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±±		4.59		6-25-2035		141,727		144,916
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±±		6.00		2-27-2037		2,136		2,131
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±±		4.57		12-25-2033		268,106		267,719
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±±		4.27		1-25-2034		8,074		7,955
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±±		4.44		11-21-2034		10,830		11,101
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50		1-25-2020		4,040		4,073
MASTR Specialized Loan Trust Series 2005-3 Class A1 (1 Month LIBOR +0.36%) 144A±		2.87		11-25-2035		94,375		94,141
Mid-State Trust Series 11 Class A1		4.86		7-15-2038		179,102		187,699
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 (6 Month LIBOR +0.68%) ±		3.57		1-25-2029		63,912		63,656
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2 (1 Month LIBOR +1.00%) ±		3.50		5-20-2030		448,025		448,579
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±±(c)		1.47		8-15-2045		4,070,302		163,955
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C11 Class A4 ±±		4.14		8-15-2046		569,000		591,333


15


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Morgan Stanley Bank of America Merrill Lynch Trust Series 2014-C17 Class A3		3.53	%	8-15-2047	$	300,000	$	303,398
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 (1 Month LIBOR +1.05%) ±		3.56		12-27-2033		357,048		355,281
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±±		5.42		3-15-2045		900,000		916,057
Morgan Stanley Mortgage Loan Trust Series 2004-4 Class 2A ±±		6.35		9-25-2034		33,532		36,761
New Century Home Equity Loan Trust Series 2004-3 Class M1 (1 Month LIBOR +0.93%) ±		3.44		11-25-2034		1,156,339		1,152,935
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) 144A±		3.55		5-21-2027		700,000		698,652
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±±		4.11		5-25-2035		12,044		11,834
RAIT Trust Series 2017-FL8 Class A (1 Month LIBOR +0.85%) 144A±		3.36		12-15-2037		126,481		126,345
Sequoia Mortgage Trust Series 2003-1 Class 1A (1 Month LIBOR +0.76%) ±		3.26		4-20-2033		9,952		9,733
SoFi Professional Loan Program LLC Series 2017-A Class A2B 144A		2.40		3-26-2040		750,000		733,241
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.35		8-20-2030		454,888		451,745
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±±		4.35		3-25-2034		35,415		34,806
Terwin Mortgage Trust Series 2003-6HE Class A3 (1 Month LIBOR +1.14%) ±		3.65		11-25-2033		159,555		153,796
Vendee Mortgage Trust Series 2003-2 Class IO ±±(c)		0.67		5-15-2033		3,234,302		101,393
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50		7-25-2034		107,987		115,297
Wind River CLO Limited Series 2013-2A Class BR (3 Month LIBOR +1.60%) 144A±		4.38		10-18-2030		500,000		492,944

Total Non-Agency Mortgage-Backed Securities (Cost $17,776,398)								17,507,525


				Expiration date	Shares
Rights : 0.06%

Utilities : 0.06%

Independent Power & Renewable Electricity Producers : 0.06%
Vistra Energy Corporation †				12-31-2046		327,375		238,984

Total Rights (Cost $340,913)								238,984


	Interest rate			Maturity date	Principal
Yankee Corporate Bonds and Notes : 8.69%

Communication Services : 0.42%

Diversified Telecommunication Services : 0.10%
Intelsat Luxembourg SA		8.13		6-1-2023	$	475,000		395,141

Media : 0.18%
WPP Finance 2010		3.63		9-7-2022		750,000		732,342

Wireless Telecommunication Services : 0.14%
Globo Communicacoes Participacoes SA 144A		4.88		4-11-2022		595,000		597,832

Consumer Staples : 0.37%

Beverages : 0.19%
Pernod Ricard SA 144A		4.45		1-15-2022		760,000		782,371

Tobacco : 0.18%
BAT International Finance plc 144A		3.25		6-7-2022		750,000		741,108


		16


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Energy : 1.49%

Energy Equipment & Services : 0.37%
Ensco plc		5.75	%		10-1-2044	$	2,320,000	$	1,513,800

Oil, Gas & Consumable Fuels : 1.12%
Baytex Energy Corporation 144A		5.13			6-1-2021		1,450,000		1,424,625
Baytex Energy Corporation 144A		5.63			6-1-2024		1,575,000		1,417,500
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		1,340,625
Teekay Corporation		8.50			1-15-2020		450,000		446,850

									4,629,600

Financials : 2.90%

Banks : 1.00%
ABN AMRO Bank NV 144A		4.80			4-18-2026		750,000		763,742
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		653,250
Corporación Andina de Fomento		4.38			6-15-2022		958,000		994,931
Intelsat Connect Finance Company 144A		9.50			2-15-2023		400,000		373,000
Nielsen Holding and Finance BV 144A		5.00			2-1-2025		875,000		868,438
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		465,000		468,627
Preferred Term Securities XII Limited (a)†		0.00			12-24-2033		635,000		0

									4,121,988

Diversified Financial Services : 1.73%
Intelsat Jackson Holdings SA		5.50			8-1-2023		5,275,000		4,793,656
Intelsat Jackson Holdings SA 144A		8.50			10-15-2024		1,700,000		1,717,000
Tyco Electronics Group SA		3.50			2-3-2022		625,000		626,034

									7,136,690

Insurance : 0.17%
Sompo International Holdings Limited		7.00			7-15-2034		575,000		681,519

Health Care : 1.54%

Pharmaceuticals : 1.54%
Bausch Health Companies Incorporated 144A		5.50			3-1-2023		2,200,000		2,142,250
Bausch Health Companies Incorporated 144A		5.50			11-1-2025		375,000		374,010
Bausch Health Companies Incorporated 144A		5.88			5-15-2023		770,000		754,307
Bausch Health Companies Incorporated 144A		6.13			4-15-2025		1,940,000		1,833,300
Bausch Health Companies Incorporated 144A		6.50			3-15-2022		325,000		335,969
Bausch Health Companies Incorporated 144A		7.00			3-15-2024		575,000		603,391
Bausch Health Companies Incorporated 144A		8.50			1-31-2027		300,000		313,500

									6,356,727

Industrials : 1.02%

Commercial Services & Supplies : 0.57%
Ritchie Brothers Auctioneers Incorporated 144A		5.38			1-15-2025		2,350,000		2,361,750

Electrical Equipment : 0.26%
Sensata Technologies BV 144A		5.00			10-1-2025		260,000		261,300
Sensata Technologies BV 144A		6.25			2-15-2026		800,000		834,000

									1,095,300


17


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Multi-Sector Income Fund


Security name			Interest rate			Maturity date		Principal		Value
Road & Rail : 0.19%
Canadian Pacific Railway Company				4.50	%		1-15-2022	$	750,000	$	770,412

Materials : 0.79%

Containers & Packaging : 0.53%
Ardagh Packaging Finance plc 144A				4.25			9-15-2022		375,000		371,175
Ardagh Packaging Finance plc 144A				7.25			5-15-2024		725,000		751,281
OI European Group BV 144A				4.00			3-15-2023		1,100,000		1,064,250

											2,186,706

Metals & Mining : 0.26%
Glencore Finance Canada Limited 144A				4.25			10-25-2022		750,000		760,013
Vale Overseas Limited				4.38			1-11-2022		296,000		297,569

											1,057,582

Utilities : 0.16%

Electric Utilities : 0.16%
Comision Federal de Electricidad 144A				4.88			5-26-2021		650,000		658,125

Total Yankee Corporate Bonds and Notes (Cost $37,134,868)											35,818,993


			Yield					Shares
Short-Term Investments : 1.45%

Investment Companies : 1.45%
Wells Fargo Government Money Market Fund Select Class (l)(u)##				2.33					5,963,043		5,963,043

Total Short-Term Investments (Cost $5,963,043)											5,963,043

Total investments in securities (Cost $594,071,726)	140.64	%									579,866,585
Other assets and liabilities, net	(40.64	)									(167,560,654	)

Total net assets	100.00	%								$	412,305,931

±	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.

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

¥	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.

<	All or a portion of the position represents an unfunded loan commitment. The rate represents current interest rate if the loan is partially funded.

(l)

The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u)

The rate represents the 7-day annualized yield at period end.

##	All or a portion of this security is segregated for when-issued securities and/or unfunded loans.


		18


Wells Fargo Multi-Sector Income Fund		Portfolio of investments — January 31, 2019 (unaudited)


Abbreviations:
AUD		Australian dollar
BRL		Brazilian real
CLO		Collateralized loan obligation
COP		Colombian peso
FHLMC		Federal Home Loan Mortgage Corporation
FNMA		Federal National Mortgage Association
GBP		Great British pound
GNMA		Government National Mortgage Association
IDR		Indonesian rupiah
INR		Indian Rupee
LIBOR		London Interbank Offered Rate
MXN		Mexican peso
MYR		Malaysian ringgit
NZD		New Zealand dollar
PEN		Peruvian sol
REIT		Real estate investment trust
ZAR		South African rand


19

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		8,394,594		32,053,322		34,484,873		5,963,043	$	5,963,043		1.45	%

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

Notes to Portfolio of investments – January 31, 2019 (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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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.

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

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

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Wells Fargo Asset Management Pricing Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

When-issued transactions

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

Loans

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

As of January 31, 2019, the Fund had unfunded loan commitments of $1,681,112.

Fair valuation measurements

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted

quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:


Level 1 –		quoted prices in active markets for identical securities

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2019:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	5,227,938	$	0	$	5,227,938
Asset-backed securities		0		3,453,706		0		3,453,706
Common stocks
Materials		783		0		0		783
Corporate bonds and notes		0		315,207,643		0		315,207,643
Foreign corporate bonds and notes		0		19,968,780		0		19,968,780
Foreign government bonds		0		89,669,915		0		89,669,915
Loans		0		74,182,670		12,626,605		86,809,275
Non-agency mortgage-backed securities		0		17,507,525		0		17,507,525
Rights
Utilities		0		238,984		0		238,984
Yankee corporate bonds and notes		0		35,818,993		0		35,818,993
Short-term investments
Investment companies		5,963,043		0		0		5,963,043

Total assets	$	5,963,826	$	561,276,154	$	12,626,605	$	579,866,585

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

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


	Loans
Balance as of October 31, 2018	$	14,613,791
Accrued discounts (premiums)		1,110
Realized losses		(99,520	)
Change in unrealized gains (losses)		(200,679	)
Purchases		248,750
Sales		(1,209,497	)
Transfers into Level 3		1,723,407
Transfers out of Level 3		(2,450,757	)

Balance as of January 31, 2019	$	12,626,605

Change in unrealized gains (losses) relating to securities still held at January 31, 2019	$	(174,685	)

The investment type categorized above was 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: March 27, 2019

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


Wells Fargo Multi-Sector Income Fund

By:		/s/ Andrew Owen

		Andrew Owen
		President

Date: March 27, 2019

By:		/s/ Jeremy DePalma

		Jeremy DePalma
		Treasurer

Date: March 27, 2019