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 Advantage 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, 2012

Date of reporting period: January 31, 2013

ITEM 1.     PORTFOLIO OF INVESTMENTS

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND                                      PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date	Principal		Value
Agency Securities : 2.69%
FHLMC		8.50	%	4-1-2015	$	318	$	318
FHLMC		8.50		7-1-2028		104,545		127,842
FHLMC		8.50		3-1-2030		61,888		65,070
FHLMC Series 0196 Class A ±		1.05		12-15-2021		69,183		69,853
FHLMC Series 1383 ±		5.83		2-1-2037		1,101,164		1,185,536
FHLMC Series 2011-K16 Class B ±144A		4.59		11-25-2046		1,000,000		1,045,202
FHLMC Series 2011-K701 Class B ±144A		4.29		7-25-2048		165,000		175,659
FHLMC Series 2011-K702 Class B ±144A		4.77		4-25-2044		740,000		806,185
FHLMC Series 2012-K17 Class B ±144A		4.35		12-25-2044		675,000		701,885
FHLMC Series 2012-K18 Class B ±144A		4.26		1-25-2045		810,000		817,971
FHLMC Series 2012-K19 Class B ±144A		4.04		5-25-2045		1,000,000		998,809
FHLMC Series 2012-K501 Class C ±144A		3.49		11-25-2046		800,000		808,609
FHLMC Series 2012-K705 Class B ±144A		4.16		9-25-2044		1,000,000		1,058,469
FHLMC Series 2012-K706 Class B ±144A		4.02		11-25-2044		500,000		525,749
FHLMC Series 2012-K706 Class C ±144A		4.02		11-25-2044		805,000		810,973
FHLMC Series 2012-K707 Class B ±144A		3.88		1-25-2047		930,000		969,841
FHLMC Series 2012-K709 Class B ±144A		3.74		4-25-2045		1,000,000		1,033,287
FHLMC Series 2012-K710 Class B ±144A		3.82		6-25-2047		1,000,000		1,036,189
FHLMC Series 2390 Class FD ±		0.66		12-15-2031		63,274		63,623
FHLMC Series 2567 Class FH ±		0.61		2-15-2033		163,824		163,691
FHLMC Series K007 Class X1 ±(c)		1.23		4-25-2020		1,037,917		69,066
FHLMC Series K016 Class X1 ±(c)		1.58		10-25-2021		392,203		42,500
FHLMC Series K020 Class X1 ±(c)		1.48		5-25-2022		6,985,691		740,644
FHLMC Series K021 Class X1 ±(c)		1.51		6-25-2022		9,285,898		1,026,073
FNMA ±		4.68		9-1-2032		1,875,171		2,005,929
FNMA		6.00		4-1-2033		177,798		198,490
FNMA ±		6.45		9-1-2037		1,122,903		1,225,437
FNMA		6.50		11-1-2032		64,293		72,460
FNMA		7.50		7-1-2017		79,875		86,393
FNMA		7.50		10-1-2028		10,398		10,423
FNMA		7.50		11-1-2028		159,130		172,534
FNMA		7.50		2-1-2030		40,859		41,537
FNMA		7.50		9-1-2030		95,829		103,048
FNMA		8.00		12-1-2024		1,433		1,436
FNMA		8.00		6-1-2030		30,710		31,307
FNMA		12.00		1-1-2016		8,628		9,474
FNMA Series 1996-46 Class FA ±		0.72		8-25-2021		37,595		37,725
FNMA Series 2001-25 Class Z		6.00		6-25-2031		367,060		410,384
FNMA Series 2001-35 Class F ±		0.80		7-25-2031		16,978		17,133
FNMA Series 2001-57 Class F ±		0.70		6-25-2031		17,092		17,220
FNMA Series 2002-77 Class FH ±		0.61		12-18-2032		123,894		124,360
FNMA Series 2002-97 Class FR ±		0.75		1-25-2033		35,012		35,151
FNMA Series G91-16 Class F ±		0.67		6-25-2021		46,202		46,316
FNMA Series G92-17 Class F ±		1.27		3-25-2022		99,526		101,091
GNMA		6.50		6-15-2028		64,813		75,053
GNMA		7.25		7-15-2017		21,499		23,610
GNMA		7.25		8-15-2017		46,886		51,907
GNMA		7.25		8-15-2017		24,190		26,706
GNMA		7.25		9-15-2017		35,477		39,416
GNMA		7.25		10-15-2017		65,958		72,989
GNMA		7.25		10-15-2017		37,523		41,449
GNMA		7.25		11-15-2017		29,835		32,852
GNMA		7.25		1-15-2018		10,928		12,104
GNMA		7.25		1-15-2018		26,221		29,221
GNMA		7.25		2-15-2018		26,723		29,682
GNMA		7.25		5-15-2018		13,954		15,305
Total Agency Securities (Cost $18,347,420)								19,541,186
Asset-Backed Securities : 0.13%
Bear Stearns Asset Backed Securities Series 2006 Class 1A2 ±		0.42		12-25-2035		205,470		202,576
CVS Pass-Through Trust Series T		6.04		12-10-2028		628,944		727,875
Total Asset-Backed Securities (Cost $909,548)								930,451

1

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name					Shares		Value
Common Stocks : 0.09%
Consumer Discretionary : 0.00%
Hotels, Restaurants & Leisure : 0.00%
Trump Entertainment Resorts Incorporated †(i)						1,161	$	1,161
Telecommunication Services : 0.09%
Diversified Telecommunication Services : 0.09%
Fairpoint Communications Incorporated †						70,442		652,293
Total Common Stocks (Cost $1,617,838)								653,454
	Interest rate			Maturity date	Principal
Corporate Bonds and Notes : 58.39%
Consumer Discretionary : 12.76%
Auto Components : 1.20%
Allison Transmission Incorporated 144A		7.13	%	5-15-2019	$	3,050,000		3,309,209
Cooper Tire & Rubber Company		7.63		3-15-2027		1,895,000		1,980,275
Cooper Tire & Rubber Company		8.00		12-15-2019		450,000		506,250
Goodyear Tire & Rubber Company		7.00		5-15-2022		400,000		429,000
Goodyear Tire & Rubber Company		8.75		8-15-2020		468,000		542,880
Penske Automotive Group Incorporated 144A		5.75		10-1-2022		140,000		143,850
United Rentals Financing Escrow Corporation		5.75		7-15-2018		1,685,000		1,811,375
								8,722,839
Diversified Consumer Services : 1.46%
Service Corporation International		4.50		11-15-2020		325,000		329,469
Service Corporation International		6.75		4-1-2016		475,000		533,781
Service Corporation International		7.00		6-15-2017		1,410,000		1,619,738
Service Corporation International		7.00		5-15-2019		650,000		714,188
Service Corporation International		7.50		4-1-2027		3,965,000		4,371,413
Service Corporation International		7.63		10-1-2018		680,000		810,900
Service Corporation International		8.00		11-15-2021		475,000		580,688
Sotheby’s 144A		5.25		10-1-2022		1,615,000		1,659,413
								10,619,590
Hotels, Restaurants & Leisure : 3.76%
Ameristar Casinos Incorporated		7.50		4-15-2021		2,150,000		2,338,125
Burger King Corporation		9.88		10-15-2018		850,000		971,125
CCM Merger Incorporated 144A		9.13		5-1-2019		6,270,000		6,285,675
CityCenter Holdings LLC		7.63		1-15-2016		600,000		647,250
CityCenter Holdings LLC ¥		10.75		1-15-2017		2,051,822		2,264,699
DineEquity Incorporated		9.50		10-30-2018		3,475,000		3,952,813
Greektown Superholdings Incorporated Series A		13.00		7-1-2015		4,125,000		4,429,219
NAI Entertainment Holdings LLC 144A		8.25		12-15-2017		1,620,000		1,773,900
Penn National Gaming Incorporated		8.75		8-15-2019		250,000		285,000
Ruby Tuesday Incorporated 144A		7.63		5-15-2020		2,200,000		2,156,000
Scientific Games Corporation		9.25		6-15-2019		485,000		541,988
Speedway Motorsports Incorporated 144A		6.75		2-1-2019		200,000		212,000
Speedway Motorsports Incorporated		6.75		2-1-2019		325,000		344,500
Speedway Motorsports Incorporated		8.75		6-1-2016		980,000		1,043,700
								27,245,994
Household Durables : 0.10%
American Greetings Corporation		7.38		12-1-2021		475,000		483,906

2

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date	Principal		Value
Household Durables (continued)
Tempur-Pedic International Incorporated 144A		6.88	%	12-15-2020	$	200,000	$	212,500
								696,406
Internet & Catalog Retail : 0.11%
Expedia Incorporated		5.95		8-15-2020		750,000		826,676
Media : 4.93%
Cablevision Systems Corporation		8.63		9-15-2017		1,310,000		1,535,975
CBS Corporation		8.88		5-15-2019		750,000		1,008,989
CCO Holdings LLC		6.50		4-30-2021		900,000		963,000
CCO Holdings LLC		7.00		1-15-2019		500,000		540,625
CCO Holdings LLC		8.13		4-30-2020		450,000		505,125
Cinemark USA Incorporated 144A		5.13		12-15-2022		575,000		582,188
Cinemark USA Incorporated		7.38		6-15-2021		775,000		858,313
Cinemark USA Incorporated		8.63		6-15-2019		350,000		387,625
CSC Holdings LLC		7.63		7-15-2018		325,000		378,625
CSC Holdings LLC		7.88		2-15-2018		1,100,000		1,281,500
CSC Holdings LLC		8.50		4-15-2014		400,000		432,500
DIRECTV Holdings LLC		3.80		3-15-2022		750,000		756,717
DISH DBS Corporation		7.88		9-1-2019		480,000		567,600
EchoStar DBS Corporation		7.13		2-1-2016		125,000		139,375
EchoStar DBS Corporation		7.75		5-31-2015		350,000		391,125
Gray Television Incorporated		7.50		10-1-2020		3,270,000		3,400,800
Interpublic Group of Companies		4.00		3-15-2022		750,000		758,955
Lamar Media Corporation		5.88		2-1-2022		690,000		759,000
Lamar Media Corporation		7.88		4-15-2018		2,250,000		2,466,563
Lamar Media Corporation Series C		9.75		4-1-2014		500,000		545,000
LIN Television Corporation 144A		6.38		1-15-2021		275,000		292,875
LIN Television Corporation		8.38		4-15-2018		1,625,000		1,771,250
Local TV Finance LLC 144A ¥		9.25		6-15-2015		4,775,000		4,810,813
National CineMedia LLC		6.00		4-15-2022		1,860,000		1,985,550
National CineMedia LLC		7.88		7-15-2021		650,000		721,500
Nexstar Broadcasting Group Incorporated 144A		6.88		11-15-2020		1,000,000		1,042,500
Regal Cinemas Corporation		8.63		7-15-2019		2,650,000		2,934,875
Salem Communications Corporation		9.63		12-15-2016		2,861,000		3,147,100
Time Warner Cable Incorporated		4.00		1-15-2022		750,000		810,095
								35,776,158
Multiline Retail : 0.09%
Macy’s Retail Holdings Incorporated		3.88		1-15-2022		600,000		621,169
Specialty Retail : 1.11%
Advance Auto Parts Incorporated		4.50		1-15-2022		600,000		613,755
Gap Incorporated		5.95		4-12-2021		600,000		677,245
Limited Brands Incorporated		6.63		4-1-2021		800,000		910,000
RadioShack Corporation		6.75		5-15-2019		2,160,000		1,458,000
Rent-A-Center Incorporated		6.63		11-15-2020		1,400,000		1,524,250
Toys “R” Us Property Company I LLC		10.75		7-15-2017		795,000		854,625
Toys “R” Us Property Company II LLC		8.50		12-1-2017		1,905,000		2,005,013
								8,042,888
Consumer Staples : 0.73%
Food & Staples Retailing : 0.09%
SABMiller Holdings Incorporated 144A		3.75		1-15-2022		600,000		637,342
Food Products : 0.53%
B&G Foods Incorporated		7.63		1-15-2018		1,408,000		1,518,880
Dole Food Company Incorporated		13.88		3-15-2014		1,452,000		1,562,715

3

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name	Interest rate			Maturity date	Principal		Value
Food Products (continued)
Kraft Foods Group Incorporated		3.50	%	6-6-2022	$	750,000	$	784,490
								3,866,085
Tobacco : 0.11%
Lorillard Tobacco Company		6.88		5-1-2020		650,000		787,639
Energy : 10.56%
Energy Equipment & Services : 2.85%
Cleaver Brooks Incorporated 144A		8.75		12-15-2019		275,000		294,594
Dresser-Rand Group Incorporated		6.50		5-1-2021		925,000		980,500
Era Group Incorporated Company 144A		7.75		12-15-2022		1,250,000		1,237,500
Gulfmark Offshore Incorporated 144A		6.38		3-15-2022		2,850,000		2,942,625
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		50,000		52,500
Hornbeck Offshore Services Incorporated Series B		8.00		9-1-2017		3,630,000		3,875,025
NGPL PipeCo LLC 144A		7.12		12-15-2017		375,000		408,750
NGPL PipeCo LLC 144A		7.77		12-15-2037		2,700,000		2,862,000
NGPL PipeCo LLC 144A		9.63		6-1-2019		3,155,000		3,644,025
Northern Tier Energy LLC 144A		7.13		11-15-2020		480,000		504,000
Oil States International Incorporated 144A		5.13		1-15-2023		175,000		177,188
Oil States International Incorporated		6.50		6-1-2019		1,230,000		1,313,025
PHI Incorporated		8.63		10-15-2018		2,190,000		2,395,313
								20,687,045
Oil, Gas & Consumable Fuels : 7.71%
Coffeyville Resources LLC 144A		10.88		4-1-2017		1,350,000		1,471,500
CVR Refining LLC 144A		6.50		11-1-2022		1,675,000		1,687,563
Denbury Resources Incorporated %%		4.63		7-15-2023		400,000		392,000
Denbury Resources Incorporated		6.38		8-15-2021		50,000		54,375
Denbury Resources Incorporated		8.25		2-15-2020		1,010,000		1,126,150
El Paso Corporation		6.50		9-15-2020		445,000		497,751
El Paso Corporation		7.00		6-15-2017		850,000		974,457
El Paso Corporation		7.25		6-1-2018		1,585,000		1,841,079
El Paso Corporation		7.42		2-15-2037		800,000		833,065
El Paso Corporation		7.80		8-1-2031		1,850,000		2,159,485
El Paso Pipeline Partners LP		6.50		4-1-2020		750,000		905,371
Encore Acquisition Company		9.50		5-1-2016		375,000		400,725
Energy Transfer Equity LP		7.50		10-15-2020		3,100,000		3,572,750
Energy Transfer Partners LP		5.20		2-1-2022		750,000		837,353
Ferrellgas LP		9.13		10-1-2017		2,450,000		2,646,000
HollyFrontier Corporation		9.88		6-15-2017		1,895,000		2,041,863
Inergy Midstream LP 144A		6.00		12-15-2020		795,000		820,838
Kinder Morgan Energy Partners LP		3.95		9-1-2022		750,000		782,545
Nabors Industries Incorporated		4.63		9-15-2021		750,000		769,910
Overseas Shipholding Group Incorporated (s)		7.50		2-15-2024		525,000		200,813
Petrohawk Energy Corporation		7.88		6-1-2015		790,000		824,939
Petrohawk Energy Corporation		10.50		8-1-2014		495,000		523,997
Phillips 66		4.30		4-1-2022		625,000		685,251
Pioneer Natural Resources Company		3.95		7-15-2022		750,000		779,162
Pioneer Natural Resources Company		7.50		1-15-2020		1,220,000		1,535,398
Plains Exploration & Production Company		8.63		10-15-2019		2,885,000		3,288,900
Rockies Express Pipeline LLC 144A		3.90		4-15-2015		2,000,000		2,000,000
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		400,000		376,000
Rockies Express Pipeline LLC 144A		6.00		1-15-2019		2,700,000		2,646,000
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		5,388,000		4,741,440
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		775,000		693,625
Sabine Pass LNG LP 144A		6.50		11-1-2020		4,180,000		4,284,500
Sabine Pass LNG LP		7.50		11-30-2016		3,750,000		4,162,500
Suburban Propane Partners LP		7.38		3-15-2020		275,000		297,688
Suburban Propane Partners LP		7.38		8-1-2021		420,000		457,800
Suburban Propane Partners LP		7.50		10-1-2018		422,000		455,760
Susser Holdings LLC		8.50		5-15-2016		975,000		1,031,063

4

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels (continued)
Tesoro Corporation		9.75	%	6-1-2019	$	945,000	$	1,072,575
Weatherford International Incorporated		6.35		6-15-2017		650,000		748,960
Western Gas Partners		5.38		6-1-2021		503,000		566,690
Williams Partners LP		3.35		8-15-2022		750,000		744,972
								55,932,813
Financials : 11.31%
Capital Markets : 0.26%
Ace Securities Corporation ±		0.60		8-25-2045		317,017		310,534
Ace Securities Corporation ±		2.83		6-25-2033		703,010		698,749
Goldman Sachs Group Incorporated		5.75		1-24-2022		750,000		874,349
								1,883,632
Commercial Banks : 1.06%
CIT Group Incorporated 144A		4.75		2-15-2015		110,000		115,500
CIT Group Incorporated		5.00		5-15-2017		250,000		266,875
CIT Group Incorporated		5.25		3-15-2018		500,000		535,000
CIT Group Incorporated 144A		5.50		2-15-2019		1,275,000		1,364,250
CIT Group Incorporated 144A		6.63		4-1-2018		550,000		616,000
City National Bank		5.38		7-15-2022		500,000		531,250
Emigrant Bancorp Incorporated 144A		6.25		6-15-2014		3,650,000		3,492,075
HSBC Bank USA		6.00		8-9-2017		650,000		753,975
								7,674,925
Consumer Finance : 5.22%
Ally Financial Incorporated		3.13		1-15-2016		325,000		328,305
Ally Financial Incorporated		5.50		2-15-2017		750,000		806,338
Ally Financial Incorporated		8.30		2-12-2015		2,055,000		2,288,756
American General Finance Corporation		5.40		12-1-2015		1,625,000		1,596,563
American General Finance Corporation		5.75		9-15-2016		1,100,000		1,058,750
American General Finance Corporation		6.50		9-15-2017		200,000		188,000
Clearwire Communications Finance Corporation 144A		12.00		12-1-2015		940,000		1,017,550
Clearwire Communications Finance Corporation 144A		12.00		12-1-2015		1,450,000		1,571,438
Discover Financial Services		5.20		4-27-2022		750,000		849,575
Ford Motor Credit Company LLC		5.00		5-15-2018		650,000		712,624
Ford Motor Credit Company LLC		8.00		12-15-2016		250,000		299,542
General Motors Financial Company Incorporated 144A		4.75		8-15-2017		275,000		287,410
General Motors Financial Company Incorporated		6.75		6-1-2018		1,415,000		1,637,863
GMAC LLC		6.75		12-1-2014		1,298,000		1,401,840
GMAC LLC		7.50		12-31-2013		3,620,000		3,801,000
Homer City Funding LLC ¥		8.73		10-1-2026		1,292,308		1,421,539
International Lease Finance Corporation		6.38		3-25-2013		460,000		462,875
International Lease Finance Corporation 144A		6.75		9-1-2016		100,000		112,750
International Lease Finance Corporation 144A		7.13		9-1-2018		75,000		87,750
International Lease Finance Corporation		8.63		9-15-2015		900,000		1,022,625
JBS USA Finance Incorporated		11.63		5-1-2014		3,745,000		4,170,994
Level 3 Financing Incorporated		10.00		2-1-2018		2,010,000		2,236,125
Nielsen Finance LLC Company 144A		4.50		10-1-2020		175,000		172,375
Nielsen Finance LLC Company		7.75		10-15-2018		5,350,000		5,958,563
Springleaf Finance Corporation		6.90		12-15-2017		4,620,000		4,401,705
								37,892,855
Diversified Financial Services : 2.00%
Bank of America Corporation		3.70		9-1-2015		650,000		685,641
Bank of America Corporation		5.70		1-24-2022		250,000		293,221
Blackstone Holdings Finance Company LLC 144A		5.88		3-15-2021		750,000		836,490
Citigroup Incorporated		4.50		1-14-2022		250,000		273,812
Citigroup Incorporated		6.00		8-15-2017		650,000		758,605
Fidelity National Information Services Incorporated		5.00		3-15-2022		275,000		297,688

5

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services (continued)
General Electric Capital Corporation		4.65	%		10-17-2021	$	650,000	$	722,983
HUB International Limited Company 144A		8.13			10-15-2018		2,860,000		2,960,100
ING US Incorporated 144A		5.50			7-15-2022		750,000		818,444
Moody’s Corporation		5.50			9-1-2020		1,302,000		1,443,441
Neuberger Berman Group LLC 144A		5.63			3-15-2020		500,000		525,000
Neuberger Berman Group LLC 144A		5.88			3-15-2022		650,000		689,000
Nuveen Investments Incorporated		5.50			9-15-2015		3,560,000		3,453,200
Nuveen Investments Incorporated 144A		9.13			10-15-2017		730,000		739,125
									14,496,750
Insurance : 0.49%
American International Group Incorporated		4.88			6-1-2022		750,000		836,255
Hartford Financial Services Group		5.13			4-15-2022		650,000		734,414
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		814,619
Prudential Covered Trust Company 144A		3.00			9-30-2015		456,000		471,704
WR Berkley Corporation		4.63			3-15-2022		650,000		691,824
									3,548,816
Real Estate Management & Development : 0.34%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		1,825,000		1,980,125
Onex Corporation 144A		7.75			1-15-2021		515,000		504,700
									2,484,825
REITs : 1.94%
Alexandria Real Estate Company		4.60			4-1-2022		650,000		694,902
American Tower Corporation		5.90			11-1-2021		650,000		765,307
Dupont Fabros Technology Incorporated		8.50			12-15-2017		5,560,000		6,032,600
Essex Portfolio LP 144A		3.63			8-15-2022		750,000		737,639
Health Care Incorporated		5.25			1-15-2022		650,000		727,006
Host Hotels & Resorts LP		9.00			5-15-2017		235,000		249,688
Omega Healthcare Investors Incorporated		6.75			10-15-2022		1,775,000		1,939,188
Sabra Health Care Incorporated		8.13			11-1-2018		1,450,000		1,562,375
Ventas Realty LP		4.25			3-1-2022		650,000		687,596
WEA Finance LLC 144A		4.63			5-10-2021		650,000		718,554
									14,114,855
Health Care : 2.97%
Biotechnology : 0.11%
Amgen Incorporated		3.63			5-15-2022		750,000		793,952
Health Care Equipment & Supplies : 0.47%
Boston Scientific Corporation		6.00			1-15-2020		750,000		868,042
CareFusion Corporation		6.38			8-1-2019		750,000		889,931
Hologic Incorporated 144A		6.25			8-1-2020		1,530,000		1,644,750
									3,402,723
Health Care Providers & Services : 2.00%
Apria Healthcare Group Incorporated		11.25			11-1-2014		590,000		603,275
Aviv HealthCare Properties LP		7.75			2-15-2019		1,025,000		1,099,313
Centene Corporation		5.75			6-1-2017		1,000,000		1,067,500
Community Health Systems Incorporated		5.13			8-15-2018		425,000		447,313
Community Health Systems Incorporated		7.13			7-15-2020		775,000		837,000
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		878,729
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		525,000		551,250
Express Scripts Holding Company		3.90			2-15-2022		665,000		704,833
HCA Incorporated		4.75			5-1-2023		325,000		327,031
HCA Incorporated		6.50			2-15-2020		1,875,000		2,085,938

6

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services (continued)
HCA Incorporated		7.50	%		11-15-2095	$	800,000	$	714,000
HCA Incorporated		8.50			4-15-2019		375,000		417,188
Health Management Associates Incorporated		6.13			4-15-2016		175,000		192,500
HealthSouth Corporation		5.75			11-1-2024		800,000		812,000
HealthSouth Corporation		7.25			10-1-2018		360,000		390,600
HealthSouth Corporation		7.75			9-15-2022		360,000		395,100
Humana Incorporated		7.20			6-15-2018		750,000		918,165
MPT Operating Partnership LP		6.38			2-15-2022		475,000		509,438
MPT Operating Partnership LP		6.88			5-1-2021		775,000		850,563
PSS World Medical Incorporated		6.38			3-1-2022		320,000		392,800
Tenet Healthcare Corporation 144A		4.75			6-1-2020		210,000		211,313
Tenet Healthcare Corporation		10.00			5-1-2018		75,000		87,281
									14,493,130
Life Sciences Tools & Services : 0.11%
Life Technologies Corporation		6.00			3-1-2020		750,000		828,795
Pharmaceuticals : 0.28%
Mylan Incorporated 144A		7.63			7-15-2017		1,125,000		1,259,040
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		748,561
									2,007,601
Industrials : 3.10%
Aerospace & Defense : 0.23%
GeoEye Incorporated		9.63			10-1-2015		485,000		534,713
TransDigm Group Incorporated 144A		5.50			10-15-2020		300,000		312,750
TransDigm Group Incorporated		7.75			12-15-2018		750,000		833,438
									1,680,901
Air Freight & Logistics : 0.33%
Bristow Group Incorporated		6.25			10-15-2022		2,225,000		2,403,000
Airlines : 0.40%
Aviation Capital Group Corporation 144A		4.63			1-31-2018		150,000		151,970
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,090,000		1,183,816
Aviation Capital Group Corporation 144A		7.13			10-15-2020		720,000		788,738
Delta Air Lines Incorporated		4.75			5-7-2021		740,000		801,050
									2,925,574
Commercial Services & Supplies : 1.31%
ADT Corporation 144A		3.50			7-15-2022		750,000		729,194
Corrections Corporation of America		7.75			6-1-2017		1,270,000		1,339,850
Covanta Holding Corporation		6.38			10-1-2022		225,000		245,574
Covanta Holding Corporation		7.25			12-1-2020		230,000		253,382
Geo Group Incorporated		6.63			2-15-2021		105,000		116,288
Geo Group Incorporated		7.75			10-15-2017		2,250,000		2,418,750
Interface Incorporated		7.63			12-1-2018		125,000		135,625
Iron Mountain Incorporated		8.38			8-15-2021		1,385,000		1,526,963
KAR Holdings Incorporated ±		4.31			5-1-2014		1,150,000		1,151,449
Penske Truck Leasing Company 144A		3.75			5-11-2017		750,000		789,531
Republic Services Incorporated		3.55			6-1-2022		750,000		775,091
									9,481,697
Machinery : 0.16%
Columbus McKinnon Corporation		7.88			2-1-2019		725,000		777,563

7

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name	Interest rate			Maturity date	Principal		Value
Machinery (continued)
Titan International Incorporated		7.88	%	10-1-2017	$	375,000	$	402,656
								1,180,219
Professional Services : 0.28%
Interactive Data Corporation		10.25		8-1-2018		1,250,000		1,415,625
Verisk Analytics Incorporated		5.80		5-1-2021		530,000		600,220
								2,015,845
Trading Companies & Distributors : 0.39%
H&E Equipment Services Incorporated 144A		7.00		9-1-2022		2,565,000		2,802,263
Information Technology : 4.04%
Communications Equipment : 0.21%
Avaya Incorporated		9.75		11-1-2015		575,000		547,688
Lucent Technologies Incorporated		6.45		3-15-2029		1,285,000		1,002,300
								1,549,988
Computers & Peripherals : 0.48%
Hewlett Packard Company		4.05		9-15-2022		750,000		727,688
NCR Corporation 144A		4.63		2-15-2021		10,000		10,013
NCR Corporation 144A		5.00		7-15-2022		2,675,000		2,708,438
								3,446,139
Electronic Equipment, Instruments & Components : 1.20%
CDW Financial Corporation		12.54		10-12-2017		1,486,000		1,590,020
Jabil Circuit Incorporated		8.25		3-15-2018		5,275,000		6,303,625
L-3 Communications Corporation		4.95		2-15-2021		750,000		835,916
								8,729,561
Internet Software & Services : 0.18%
Equinix Incorporated		7.00		7-15-2021		75,000		83,625
Equinix Incorporated		8.13		3-1-2018		1,085,000		1,190,788
								1,274,413
IT Services : 1.72%
Audatex North American Incorporated 144A		6.75		6-15-2018		750,000		804,375
CyrusOne LLC 144A		6.38		11-15-2022		300,000		320,250
Fidelity National Information Services Incorporated		7.63		7-15-2017		400,000		432,000
Fidelity National Information Services Incorporated		7.88		7-15-2020		1,000,000		1,131,250
First Data Corporation 144A		7.38		6-15-2019		625,000		657,813
First Data Corporation		11.25		3-31-2016		3,995,000		3,975,025
SunGard Data Systems Incorporated 144A		6.63		11-1-2019		1,375,000		1,419,688
SunGard Data Systems Incorporated		7.38		11-15-2018		3,287,000		3,492,438
SunGard Data Systems Incorporated		7.63		11-15-2020		250,000		272,500
								12,505,339
Software : 0.25%
CA Incorporated		5.38		12-1-2019		750,000		853,616
Nuance Communications Incorporated 144A		5.38		8-15-2020		925,000		952,750
								1,806,366

8

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date	Principal		Value
Materials : 1.11%
Chemicals : 0.29%
Dow Chemical Company		4.13	%	11-15-2021	$	750,000	$	809,959
Tronox Finance LLC 144A		6.38		8-15-2020		1,240,000		1,246,200
								2,056,159
Containers & Packaging : 0.44%
Crown Americas LLC 144A		4.50		1-15-2023		650,000		640,250
Crown Americas LLC		7.63		5-15-2017		450,000		476,186
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		600,000		581,250
Owens-Illinois Incorporated		7.80		5-15-2018		1,295,000		1,505,438
								3,203,124
Metals & Mining : 0.08%
Freeport-McMoRan Copper & Gold Incorporated		3.55		3-1-2022		600,000		584,832
Indalex Holdings Corporation (a)(s)(i)		11.50		2-1-2014		3,170,000		0
								584,832
Paper & Forest Products : 0.30%
Clearwater Paper Corporation		10.63		6-15-2016		545,000		591,325
Georgia-Pacific LLC		8.88		5-15-2031		1,080,000		1,597,728
								2,189,053
Telecommunication Services : 8.22%
Diversified Telecommunication Services : 3.33%
CenturyLink Incorporated		5.80		3-15-2022		600,000		627,907
Citizens Communications Company		7.88		1-15-2027		1,805,000		1,850,125
Frontier Communications Corporation		8.13		10-1-2018		845,000		978,088
Frontier Communications Corporation		8.25		5-1-2014		4,000		4,300
Frontier Communications Corporation		8.25		4-15-2017		1,040,000		1,203,800
Frontier Communications Corporation		8.50		4-15-2020		525,000		606,375
GCI Incorporated		6.75		6-1-2021		425,000		412,250
GCI Incorporated		8.63		11-15-2019		5,625,000		5,948,438
Qwest Corporation		7.13		11-15-2043		795,000		824,812
Qwest Corporation		7.25		9-15-2025		1,040,000		1,195,373
Qwest Corporation		7.63		8-3-2021		230,000		251,661
SBA Telecommunications Incorporated 144A		5.75		7-15-2020		2,000,000		2,100,000
SBA Telecommunications Incorporated		8.25		8-15-2019		15,000		16,688
Syniverse Holdings Incorporated		9.13		1-15-2019		5,005,000		5,442,938
Windstream Corporation		7.88		11-1-2017		2,330,000		2,662,025
								24,124,780
Wireless Telecommunication Services : 4.89%
Allbritton Communications Company		8.00		5-15-2018		1,275,000		1,380,188
Cricket Communications Incorporated		7.75		5-15-2016		1,705,000		1,794,513
Cricket Communications Incorporated		7.75		10-15-2020		1,550,000		1,608,125
Crown Castle International Corporation 144A		5.25		1-15-2023		1,225,000		1,286,250
Crown Castle International Corporation		7.13		11-1-2019		75,000		83,344
Crown Castle Towers LLC 144A		6.11		1-15-2040		750,000		907,541
Intelsat Jackson Holdings Limited		8.50		11-1-2019		850,000		943,500
iPCS Incorporated ¥		3.56		5-1-2014		1,357,019		1,357,019
MetroPCS Communications Incorporated		6.63		11-15-2020		2,550,000		2,703,000
MetroPCS Communications Incorporated		7.88		9-1-2018		1,950,000		2,110,875
Motorola Solutions Incorporated		3.75		5-15-2022		750,000		752,129
SBA Telecommunications Incorporated 144A		5.63		10-1-2019		160,000		168,000
Sprint Capital Corporation		6.88		11-15-2028		11,985,000		12,104,850
Sprint Capital Corporation		8.75		3-15-2032		1,855,000		2,188,900
Sprint Nextel Corporation 144A		9.00		11-15-2018		325,000		402,188

9

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name	Interest rate			Maturity date	Principal		Value
Wireless Telecommunication Services (continued)
Sprint Nextel Corporation		11.50	%	11-15-2021	$	625,000	$	854,688
TW Telecommunications Holdings Incorporated		5.38		10-1-2022		3,180,000		3,339,000
TW Telecommunications Holdings Incorporated		8.00		3-1-2018		1,400,000		1,529,500
								35,513,610
Utilities : 3.59%
Electric Utilities : 1.50%
Energy Future Intermediate Holding Company LLC 144A		6.88		8-15-2017		500,000		535,000
Great Plains Energy Incorporated		4.85		6-1-2021		750,000		812,209
IPALCO Enterprises Incorporated		5.00		5-1-2018		1,075,000		1,144,875
IPALCO Enterprises Incorporated 144A		7.25		4-1-2016		1,925,000		2,156,000
Mirant Mid-Atlantic LLC Series C		10.06		12-30-2028		3,614,632		4,093,571
Otter Tail Corporation		9.00		12-15-2016		1,835,000		2,146,950
PNM Resources Incorporated		9.25		5-15-2015		9,000		10,260
								10,898,865
Gas Utilities : 0.33%
AmeriGas Finance LLC		6.75		5-20-2020		1,775,000		1,925,875
AmeriGas Finance LLC		7.00		5-20-2022		425,000		465,375
								2,391,250
Independent Power Producers & Energy Traders : 1.55%
Calpine Construction Finance Corporation 144A		7.25		10-15-2017		4,433,000		4,698,980
Calpine Construction Finance Corporation 144A		8.00		6-1-2016		1,350,000		1,424,250
NRG Energy Incorporated		8.50		6-15-2019		1,615,000		1,788,613
NSG Holdings LLC 144A(i)		7.75		12-15-2025		1,325,000		1,378,000
Reliant Energy Incorporated		7.63		6-15-2014		450,000		481,500
Reliant Energy Incorporated		9.24		7-2-2017		946,943		1,044,005
Reliant Energy Incorporated		9.68		7-2-2026		410,000		444,850
								11,260,198
Multi-Utilities : 0.21%
Ameren Illinois Company		9.75		11-15-2018		500,000		687,014
CMS Energy Corporation		5.05		3-15-2022		750,000		835,919
								1,522,933
Total Corporate Bonds and Notes (Cost $397,714,234)								423,631,612
Foreign Corporate Bonds and Notes @: 3.95%
Consumer Discretionary : 0.54%
Automobiles : 0.12%
Aston Martin Capital Limited (GBP)		9.25		7-15-2018		200,000		321,958
Jaguar Land Rover plc (GBP)		8.25		3-15-2020		300,000		529,565
								851,523
Hotels, Restaurants & Leisure : 0.25%
Casino Guichard Perrachon SA (EUR)		4.73		5-26-2021		900,000		1,356,861
ODEON & UCI Cinemas Group (GBP)		9.00		8-1-2018		300,000		499,590
								1,856,451
Media : 0.17%
Unitymedia Hessen GmbH & Company (EUR) 144A		5.13		1-21-2023		500,000		665,207

10

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Media (continued)
Telenet Finance V Luxembourg SCA (EUR)	6.25	%	8-15-2022	400,000	$	574,350
						1,239,557
Consumer Staples : 0.17%
Food & Staples Retailing : 0.17%
Foodcorp Limited (EUR)	8.75		3-1-2018	820,000		1,223,623
Financials : 2.45%
Commercial Banks : 1.91%
Eurofima (AUD)	6.25		12-28-2018	2,450,000		2,806,354
European Investment Bank (AUD)	6.13		1-23-2017	4,930,000		5,573,905
International Bank for Reconstruction & Development (AUD)	5.75		10-1-2020	950,000		1,103,442
KfW Bankengruppe (AUD)	6.25		12-4-2019	1,225,000		1,439,501
KfW Bankengruppe (NZD)	6.38		2-17-2015	3,319,000		2,946,413
						13,869,615
Consumer Finance : 0.09%
Fiat Industrial SpA (EUR)	6.25		3-9-2018	400,000		601,098
Diversified Financial Services : 0.45%
General Electric Capital Corporation (NZD)	7.63		12-10-2014	2,000,000		1,788,347
Voto-Votorantim Limited (EUR)	5.25		4-28-2017	1,000,000		1,480,003
						3,268,350
Industrials : 0.41%
Building Products : 0.07%
Heidelbergcement AG (EUR)	8.50		10-31-2019	330,000		544,410
Commercial Services & Supplies : 0.05%
Iron Mountain Incorporated (EUR)	6.75		10-15-2018	250,000		345,401
Trading Companies & Distributors : 0.08%
Rexel SA (EUR)	7.00		12-17-2018	200,000		297,358
Rexel SA (EUR)	8.25		12-15-2016	200,000		293,964
						591,322
Transportation Infrastructure : 0.21%
Heathrow Funding Limited (EUR)	4.60		2-15-2020	1,000,000		1,513,429
Materials : 0.17%
Metals & Mining : 0.09%
New World Resources NV (EUR)	7.38		5-15-2015	500,000		691,630
Paper & Forest Products : 0.08%
Smurfit Kappa Funding plc (EUR)	7.25		11-15-2017	400,000		574,621
Telecommunication Services : 0.11%
Diversified Telecommunication Services : 0.11%
Telefonica Emisiones Company (EUR)	4.69		11-11-2019	300,000		422,692
Virgin Media Finance plc (GBP)	8.88		10-15-2019	201,000		355,765
						778,457

11

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Utilities : 0.10%
Water Utilities : 0.10%
Zinc Capital SA (EUR)	8.88	%	5-15-2018		500,000	$	724,726
Total Foreign Corporate Bonds and Notes (Cost $23,913,716)							28,674,213
Foreign Government Bonds @: 27.61%
Australia Series 22 (AUD)	6.00		7-21-2022		4,000,000		4,675,776
Australia Series 124 (AUD)	5.75		5-15-2021		2,750,000		3,372,787
Brazil (BRL)	8.50		1-5-2024		15,500,000		8,873,377
Brazil (BRL)	10.00		1-1-2017		31,000,000		16,311,712
Chile (CLP)	5.50		8-5-2020		1,700,000,000		4,022,576
Colombia (COP)	7.75		4-14-2021		5,250,000,000		3,694,555
Hungary (HUF)	6.75		11-24-2017		2,345,000,000		11,322,678
Indonesia (IDR)	5.63		5-15-2023		70,500,000,000		7,464,321
Indonesia (IDR)	7.38		9-15-2016		100,200,000,000		11,191,939
Indonesia (IDR)	8.25		6-15-2032		29,000,000,000		3,545,384
Korea (KRW)	5.25		9-10-2015		1,850,000,000		1,803,966
Korea (KRW)	5.25		3-10-2027		2,830,000,000		3,198,965
Malaysia (MYR)	4.26		9-15-2016		21,100,000		7,044,636
Mexico (MXN)	7.25		12-15-2016		175,540,000		15,058,755
New Zealand (NZD)	5.50		4-15-2023		5,625,000		5,430,369
Poland (PLN)	5.25		10-25-2020		55,750,000		19,948,588
Poland (PLN)	5.75		10-25-2021		19,000,000		7,020,510
Queensland Treasury (AUD)	6.00		3-1-2022		3,600,000		4,280,506
Republic of South Africa (ZAR)	2.60		3-31-2028		67,785,621		8,782,724
Republic of South Africa (ZAR)	6.50		2-28-2041		67,200,000		6,105,355
Russia (RUB)	7.40		4-19-2017		170,000,000		5,953,285
Russia (RUB)	7.85		3-10-2018		520,000,000		18,838,131
Thailand (THB)	3.25		6-16-2017		216,500,000		7,288,013
Turkey (TRY) ¤	0.00		2-20-2013		20,000,000		11,337,598
Turkey (TRY)	9.00		3-8-2017		6,000,000		3,745,842
Total Foreign Government Bonds (Cost $191,192,409)							200,312,348
Non-Agency Mortgage Backed Securities : 7.80%
American General Mortgage Loan Series 2009 Series 1-A6 ±144A	5.75		9-25-2048	$	1,000,000		1,043,325
American General Mortgage Loan Series 2010 Class 1A-A3 ±144A	5.65		3-25-2058		460,000		486,375
American Home Mortgage Assets Series 2006-2 Class 1A1 ±	1.13		9-25-2046		3,905,022		2,575,003
Asset Backed Funding Certificates Series 2003-AHL1 Class A1	4.18		3-25-2033		321,217		316,670
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±	5.86		7-10-2044		1,340,000		1,430,461
Banc of America Funding Corporation Series 2005 Class 5-1A1	5.50		9-25-2035		659,106		703,152
Banc of America Funding Corporation Series 2009 Class R6-3A1 ±144A	2.41		1-26-2037		77,961		78,627
Banc of America Mortgage Securities Series 2003 Class A-3A1 ±	3.06		2-25-2033		188,970		181,677
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±	6.25		2-10-2051		550,000		624,277
Bayview Financial Acquisition Trust Series 2005-B Class 1A6	5.21		4-28-2039		72,342		73,938
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±	5.89		6-11-2050		318,000		366,591
Bear Stearns Commercial Mortgage Series 2007-PW18      Class AM ±	6.08		6-11-2050		100,000		114,932
Carrington Mortgage Loan Trust Series 2005-FRE1 Class A5 ±	0.48		12-25-2035		68,462		67,411
Centex Home Equity Series 2002-A Class AF6	5.54		1-25-2032		519,270		522,562
Centex Home Equity Series 2002-D Class AF6 ±	4.66		12-25-2032		181,007		184,503
Centex Home Equity Series 2003-C Class AF4	5.46		4-25-2032		59,626		60,799
Centex Home Equity Series 2004-B Class AF6	4.69		3-25-2034		305,000		305,366
Chase Funding Mortgage Loan Series 2003 Class 5-1A4	4.40		2-25-2030		138,370		138,768
Citigroup Commercial Mortgage Trust Series 2006 Class C4 ±	5.74		3-15-2049		680,000		760,502
Citigroup Commercial Mortgage Trust Series 2006 Class C5	5.46		10-15-2049		325,000		365,774
Citigroup Commercial Mortgage Trust Series 2007-C6 Class AM ±	5.70		12-10-2049		450,000		510,188
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C ±144A	4.88		9-10-2045		1,000,000		1,078,152
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±	0.58		12-25-2033		128,538		117,387
Commercial Mortgage Pass Through Trust Series 2006-C8 Class AM	5.35		12-10-2046		595,000		665,907

12

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Commercial Mortgage Pass Through Trust Series 2012-CR2 Class C ±		4.86	%	8-15-2045	$	1,000,000	$	1,087,243
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.88		2-25-2034		97,099		101,448
Countrywide Home Loans Series 2003-48 Class 2A2 ±		0.70		10-25-2033		249,881		246,799
Credit Based Asset Servicing Series 2005-CB2 Class M1 ±		0.64		4-25-2036		359,915		353,295
Credit Suisse First Boston Mortgage Securities Series 2002-AR13 Class A4 ±		2.37		5-25-2032		98,026		96,527
Credit Suisse First Boston Mortgage Securities Series 2002-AR5 Class 1A1 ±		2.28		9-25-2032		681,536		662,442
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		2.98		6-25-2033		298,115		281,411
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 class 2A2 ±		2.58		3-25-2033		60,176		58,975
Credit Suisse Mortgage Capital Certificate Series 2006 ±		5.79		6-15-2038		1,000,000		1,101,332
Credit Suisse Mortgage Capital Certificate Series 2006-C4 Class AM		5.51		9-15-2039		1,000,000		1,091,514
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62		7-25-2034		423,501		435,636
First Franklin Mortgage Loan Assets Series 2005-FT9 Class A3 ±		0.48		10-25-2035		140,655		140,420
First Horizon Mortgage Pass Through Series 2004-AR1 Class 1A1 ±		2.59		2-25-2034		491,413		482,184
First Horizon Mortgage Pass Through Series 2004-AR4 Class 3A1 ±		2.59		8-25-2034		21,735		20,760
Fremont Home Loan Trust Series 2006-2 Class 2A2 ±		0.31		2-25-2036		3,703		3,697
Global Mortgage Securitization Limited Series 2004-A Class A2 ±144A		0.52		11-25-2032		685,509		638,486
GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5		5.60		7-25-2034		20,264		20,198
Greenwich Capital Commercial Funding Corporation Series 2006-GG7 Class AM ±		5.87		7-10-2038		2,570,000		2,883,954
Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4		5.74		12-10-2049		475,000		551,839
GS Mortgage Securities Trust Series 2006-GG6 Class AM ±		5.62		4-10-2038		835,000		921,079
GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±		5.79		8-10-2045		1,000,000		1,144,640
GS Mortgage Securities Trust Series 2010-C1 Class X ±144A(c)		1.54		8-10-2043		6,622,760		530,794
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±(c)		2.62		5-10-2045		4,968,716		757,660
GSAA Home Equity Trust Series 2004-5 Class AF5 ±		4.65		6-25-2034		90,990		93,390
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		0.63		4-25-2035		25,489		24,334
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 ±144A		0.50		3-25-2035		169,052		161,680
GSMPS Mortgage Loan Trust Series 2006-SEA1 Class A ±144A		0.50		5-25-2036		439,514		432,964
Home Equity Asset Trust Series 2006-3 Class 2A3 ±		0.38		7-25-2036		26,418		26,241
JPMorgan Chase Commercial Mortgage Trust Series 2006-LDP9 Class AM		5.37		5-15-2047		1,000,000		1,068,173
JPMorgan Chase Commercial Mortgage Trust Series 2007-CB18 Class AM ±		5.47		6-12-2047		875,000		973,084
JPMorgan Chase Commercial Mortgage Trust Series 2007-CB20 Class AM ±		5.88		2-12-2051		785,000		909,644
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		2.99		7-25-2034		165,087		164,792
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		4.91		7-25-2034		200,000		198,962
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		4.45		6-25-2035		575,000		581,473
JPMorgan Mortgage Trust Series 2005-A5 Class 3A2 ±		2.66		8-25-2035		326,512		327,564
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 ±144A		6.00		2-27-2037		105,458		107,987
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 ±144A		6.00		2-27-2037		574,099		587,769
LB-UBS Commercial Mortgage Trust Series 2007-C1 Class AM		5.46		2-15-2040		750,000		844,575
LB-UBS Commercial Mortgage Trust Series 2008-C1 ClassAM ±		6.16		4-15-2041		820,000		965,248
Lehman XS Trust Series 2006-18N Class A5A ±(i)		0.37		12-25-2036		3,406,039		2,025,636
MASTR Adjustable Rate Mortgage Series 2003-6 Class 3A1 ±		2.90		12-25-2033		899,124		894,658
MASTR Adjustable Rate Mortgage Series 2003-6 Class 4A2 ±		4.98		1-25-2034		42,622		42,931
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50		1-25-2020		131,901		134,637
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM ±		5.20		12-12-2049		340,000		372,299
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-7 Class A4 ±		5.74		6-12-2050		470,000		533,148
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70		9-12-2049		829,000		959,317
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±		5.25		8-25-2036		120,000		122,991
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM ±		5.68		5-12-2039		565,000		633,510
Mid State Trust Series 11 Class A1		4.86		7-15-2038		292,766		301,939
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		1.21		1-25-2029		243,525		233,671
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C6 Class C ±		4.54		11-15-2045		1,000,000		1,019,819
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		1.25		12-27-2033		854,333		847,452

13

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Morgan Stanley Capital I Trust Series 2005-HQ6 Class A4B		5.04	%	8-13-2042	$	650,000	$	703,066
Morgan Stanley Capital I Trust Series 2006-HQ10 Class AM		5.36		11-12-2041		500,000		545,854
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AJ ±		5.79		7-12-2044		1,000,000		1,089,626
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AM ±		5.77		7-12-2044		25,000		28,221
Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM		5.37		12-15-2043		500,000		553,972
Morgan Stanley Capital I Trust Series 2007-HQ11 Class AM ±		5.48		2-12-2044		500,000		559,865
Morgan Stanley Capital I Trust Series 2007-LQ16 Class AM ±		6.10		12-12-2049		800,000		928,486
Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B ±144A		5.79		8-15-2045		615,000		688,884
Morgan Stanley Capital I Trust Series 2010-R5 Class 3A ±144A		0.48		3-26-2037		163,674		162,070
Morgan Stanley Capital I Trust Series 2012-C4 Class C ±144A		5.53		3-15-2045		900,000		1,024,299
Morgan Stanley Capital I Trust Series 2012-C5 Class XA ±144A(c)		1.93		8-15-2045		5,970,691		674,485
Morgan Stanley Dean Witter Capital I Series 2006-HQ8 Class AM ±		5.47		3-12-2044		1,000,000		1,109,226
New Century Home Equity Loan Series 2004-3 Class M1 ±		1.13		11-25-2034		1,165,049		1,053,228
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		2.86		5-25-2035		98,827		100,532
RAAC Series 2005-SP2 Class 1A3 ±		0.60		5-25-2044		39,442		39,435
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 ±144A		3.46		12-26-2035		69,901		70,621
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88		2-25-2035		856,781		870,908
Residential Asset Mortgage Products Incorporated Series 2006-EFC1 Class A2 ±		0.40		2-25-2036		303,960		295,639
Residential Asset Securities Series 2004-KS3 Class AI4 ±		3.77		1-25-2032		350,466		353,625
Residential Funding Mortgage Securities I Series 2004-S9 Class 1A19		5.50		12-25-2034		200,000		201,163
Saxon Asset Securities Trust Series 2002-1 Class AF5 ±		6.53		12-25-2030		211,089		208,201
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		808,765		820,104
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		0.96		4-20-2033		44,357		42,725
Soundview Home Equity Loan Trust Series 2005-OPT2 Class A5 ±		0.57		8-25-2035		73,420		73,231
Structured Asset Investment Loan Trust Series 2005-4 Class M1 ±		0.60		5-25-2035		65,197		64,751
Structured Asset Securities Corporation Series 1998-8 Class A3 ±		0.72		8-25-2028		59,784		59,468
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		0.50		10-25-2027		143,270		141,638
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		1.34		11-25-2033		375,520		356,469
Wachovia Bank Commercial Mortgage Trust Series 2006-C23 Class AM ±		5.47		1-15-2045		1,220,000		1,345,656
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50		7-25-2034		401,099		419,888
Total Non-Agency Mortgage Backed Securities (Cost $53,074,884)								56,559,904
	Dividend yield				Shares
Preferred Stocks : 0.10%
Financials : 0.10%
Diversified Financial Services : 0.10%
GMAC Capital Trust I ±		7.62				27,000		720,090
Total Preferred Stocks (Cost $675,000)								720,090
	Interest rate				Principal
Term Loans : 21.10%
ADS Waste Holdings Incorporated		5.25		9-11-2019		1,085,116		1,093,938
Advantage Sales & Marketing LLC		9.25		6-18-2018		475,000		477,081
Alliance Laundry Systems LLC		5.50		12-7-2018		1,916,201		1,937,759
Alliance Laundry Systems LLC <		9.50		12-7-2019		1,546,260		1,577,185
Allison Transmission Incorporated		2.71		8-7-2014		772,878		774,261
Allison Transmission Incorporated		4.25		8-30-2019		2,459,764		2,491,274
American Capital Holdings Incorporated		5.50		7-19-2016		315,167		321,470
Ameristar Casinos Incorporated		4.00		4-13-2018		1,009,997		1,018,824
Applied Systems Incorporated		5.50		3-8-2019		595,500		598,478
Atlantic Broadband Finance LLC		4.50		9-20-2019		202,634		205,167
B&G Foods Incorporated		4.00		11-30-2018		897,733		904,466
Barrington Broadcasting Group		7.50		6-8-2017		3,651,081		3,675,434
Capital Automotive LP		5.25		3-10-2017		3,540,042		3,559,229
CCC Information Services Incorporated		5.25		12-25-2019		200,000		201,500
CCM Merger Incorporated		6.00		3-1-2017		3,012,576		3,038,936
Charter Communications Operating LLC		4.00		4-26-2019		1,860,938		1,886,525
Coinmach Corporation		3.20		11-20-2014		3,295,714		3,221,561

14

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date	Principal		Value
Term Loans (continued)
Community Health Systems Incorporated		2.70	%	10-25-2016	$	1,255,893	$	1,257,991
Covanta Energy Holdings		4.00		3-23-2019		2,580,500		2,612,756
Cricket Communications Incorporated		4.75		10-3-2019		300,000		302,250
Crossmark Holdings Incorporated <		0.00		1-31-2020		100,000		99,000
Crown Castle International Corporation		4.00		1-25-2019		6,583,500		6,629,189
Davita Incorporated		4.00		11-1-2019		1,141,112		1,152,523
DineEquity Incorporated <		0.00		10-19-2017		1,416,354		1,429,243
DineEquity Incorporated		5.25		10-19-2017		1,416,354		1,429,640
Dunkin Brands Incorporated		4.00		11-23-2017		3,164,939		3,170,858
Energy Transfer Equity LP		3.75		3-21-2017		1,000,000		1,008,610
Entercom Radio LLC		5.01		11-30-2018		1,463,030		1,484,975
Fairpoint Communications Incorporated		6.54		1-22-2016		2,594,196		2,584,000
Federal Mogul Corporation		2.14		12-28-2015		3,940,886		3,733,990
Federal Mogul Corporation		2.15		12-29-2014		3,411,305		3,232,211
Fidelity National Information Services Incorporated		1.96		3-30-2017		852,848		852,584
First Data Corporation		2.95		9-24-2014		62,520		62,546
First Data Corporation		2.95		9-24-2014		137,310		137,368
First Data Corporation		2.95		9-24-2014		40,655		40,672
Focus Brands Incorporated		6.26		3-5-2018		889,533		897,690
Focus Brands Incorporated		10.25		8-22-2018		2,023,863		2,069,400
Genesys Telecommunication		6.75		1-25-2019		1,960,188		1,974,889
Getty Images Incorporated		4.75		9-13-2019		763,447		771,844
Goodyear Tire & Rubber Company		4.75		4-12-2019		6,200,000		6,268,882
Greektown Casino LLC <		0.00		12-18-2018		3,100,000		3,111,625
GWF Energy Holdings LLC		6.00		11-25-2018		1,130,598		1,122,119
Helm Holdings Corporation		6.25		6-2-2017		1,246,212		1,251,409
HHI Holdings LLC		6.00		10-3-2018		1,731,523		1,763,989
Interactive Data Corporation <		0.00		2-11-2018		3,349,546		3,349,546
Interactive Data Corporation		4.50		2-12-2018		3,349,546		3,361,504
KAR Auction Services Incorporated		5.00		5-19-2017		4,937,738		5,004,052
Kronos Incorporated		5.50		10-25-2019		444,501		448,391
Level 3 Financing Incorporated		4.75		2-1-2016		2,194,500		2,219,737
LIN Television Corporation		4.00		12-15-2018		748,111		754,193
Local TV Finance LLC		4.21		5-7-2015		3,045,848		3,054,559
Lord & Taylor LLC		5.75		12-21-2018		451,098		454,031
LPL Holdings		4.00		3-22-2019		3,746,688		3,777,897
Medassets Incorporated		4.00		11-30-2019		391,390		396,118
MGM Resorts International		4.25		12-27-2019		1,000,000		1,013,740
Mission Broadcasting Incoporated		4.50		10-30-2019		287,331		291,282
Nexstar Broadcasting Incoporated		4.50		11-19-2019		679,648		688,993
Nielsen Finance LLC Class C		3.46		5-2-2016		272,208		273,871
Nielsen Finance LLC Class D		2.46		2-7-2017		216,563		217,158
Novelis Incorporated		4.00		3-10-2017		987,500		999,597
nTelos Incorporated		5.75		11-7-2019		2,013,842		1,960,979
Penn National Gaming Incorporated		3.75		7-16-2018		2,090,389		2,098,499
Phillips Van Heusen Corporation <		0.00		12-19-2019		675,000		680,063
Phillips Van Heusen Corporation		3.50		5-6-2016		107,053		106,919
Prestige Brands International		5.25		12-20-2018		227,746		228,803
Progressive Waste Solutions Limited		3.50		10-11-2019		1,608,529		1,626,625
Rexnord LLC		4.50		4-2-2018		1,089,021		1,098,746
Riverbed Technology Incorporated		4.00		12-13-2019		164,036		165,541
SBA Senior Finance II LLC		3.75		6-29-2018		1,979,899		1,991,779
SBA Senior Finance II LLC		3.75		9-20-2019		409,464		412,125
Serta Simmons Holdings LLC		5.00		9-19-2019		545,844		552,361
Springleaf Finance Corporation		5.50		5-5-2017		700,000		701,575
Syniverse Technologies Incorporated		5.00		4-10-2019		995,000		1,006,821
Tallgrass Energy Partners LP		5.25		10-25-2018		2,777,961		2,814,991
Telesat Holdings Incorporated		4.25		3-26-2019		2,636,750		2,659,822
Tempur Pedic International Incorporated <		0.00		11-20-2019		1,108,065		1,123,700
Texas Competitive Electric Holdings LLC		3.74		10-10-2014		20,096,983		15,060,277
Transdigm Incorporated		4.00		2-14-2017		2,690,913		2,713,786
Tronox Incorporated		4.25		2-2-2018		1,876,286		1,890,827
Tronox Incorporated		4.25		2-2-2018		511,714		515,680
TS Investco LLC		7.50		10-27-2017		891,000		899,170
United Surgical Partners International Incorporated		5.25		4-19-2017		1,931,710		1,945,599

15

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name	Interest rate			Maturity date	Principal		Value
Term Loans (continued)
United Surgical Partners International Incorporated		6.00	%	3-19-2019	$	1,315,079	$	1,325,771
Valeant Pharmaceuticals International Incorporated Series C		4.25		9-27-2019		202,587		205,421
Valeant Pharmaceuticals International Incorporated Series D		4.25		2-27-2019		1,695,750		1,716,947
Warnaco Incorporated		3.75		6-15-2018		593,970		595,455
Web Service Company LLC		7.00		8-28-2014		453,457		450,433
Wendy’s International Incorporated		4.75		5-3-2019		2,793,000		2,823,723
Total Term Loans (Cost $153,391,685)								153,112,448
Yankee Corporate Bonds and Notes : 8.01%
Consumer Discretionary : 0.59%
Diversified Consumer Services : 0.11%
Anglo American Capital Company 144A		4.13		9-27-2022		750,000		772,373
Media : 0.48%
Grupo Televisa SA		6.00		5-15-2018		750,000		883,023
Myriad International Holdings BV 144A		6.38		7-28-2017		750,000		840,000
Videotron Limited		5.00		7-15-2022		200,000		209,000
Videotron Limited		9.13		4-15-2018		775,000		819,563
WPP Finance 2010 Company		3.63		9-7-2022		750,000		745,895
								3,497,481
Consumer Staples : 0.46%
Beverages : 0.11%
Pernod Ricard SA 144A		4.45		1-15-2022		760,000		824,567
Food Products : 0.24%
Brasil Foods SA Company 144A		5.88		6-6-2022		750,000		828,750
Brasil Foods SA Company		5.88		6-6-2022		850,000		939,250
								1,768,000
Tobacco : 0.11%
BAT International Finance plc 144A		3.25		6-7-2022		750,000		769,024
Energy : 1.65%
Energy Equipment & Services : 0.12%
Ensco plc		4.70		3-15-2021		750,000		842,147
Oil, Gas & Consumable Fuels : 1.53%
Griffin Coal Mining Company Limited 144A(s)		9.50		12-1-2016		2,902,491		2,351,017
Griffin Coal Mining Company Limited (s)		9.50		12-1-2016		237,295		192,209
Lukoil International Finance Company		7.25		11-5-2019		600,000		723,000
Petrobras International Finance Company		5.38		1-27-2021		670,000		734,160
Petroleos Mexicanos		4.88		1-24-2022		750,000		825,938
Petroplus Finance Limited		5.75		1-20-2020		650,000		726,303
Ship Finance International Limited		8.50		12-15-2013		3,720,000		3,740,925
TNK BP Finance SA		6.63		3-20-2017		1,150,000		1,305,250
Woodside Finance Limited 144A		8.75		3-1-2019		405,000		534,412
								11,133,214
Financials : 1.65%
Commercial Banks : 0.89%
Banco de Brasil 144A		5.88		1-26-2022		750,000		804,375
Banco del Estado de Chile 144A		3.88		2-8-2022		650,000		686,030
Export Import Bank of Korea		5.00		4-11-2022		750,000		857,744
ITAU Unibanco Holdings SA 144A		5.13		5-13-2023		1,650,000		1,692,900

16

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

Security name	Interest rate			Maturity date	Principal		Value
Commercial Banks (continued)
Macquarie Bank Limited 144A		5.00	%	2-22-2017	$	750,000	$	822,010
Royal Bank of Scotland plc		4.38		3-16-2016		750,000		818,369
Standard Chartered Bank 144A		6.40		9-26-2017		650,000		755,209
								6,436,637
Consumer Finance : 0.54%
Wind Acquisition Finance SpA 144A		11.75		7-15-2017		3,660,000		3,934,500
Diversified Financial Services : 0.22%
BM&F Bovespa SA		5.50		7-16-2020		500,000		567,500
Corporación Andina de Fomento		4.38		6-15-2022		958,000		1,041,692
Preferred Term Securities XII Limited (s)(i)¤		0.00		12-24-2033		635,000		191
								1,609,383
Industrials : 0.27%
Airlines : 0.07%
Aguila 3 SA		7.88		1-31-2018		500,000		530,000
Commercial Services & Supplies : 0.09%
Tyco Electronics Group SA		3.50		2-3-2022		625,000		633,053
Road & Rail : 0.11%
Canadian Pacific Railway Company		4.50		1-15-2022		750,000		820,846
Information Technology : 0.53%
Computers & Peripherals : 0.42%
Seagate Technology HDD Holdings		6.80		10-1-2016		650,000		731,250
Seagate Technology HDD Holdings		6.88		5-1-2020		300,000		325,500
Seagate Technology HDD Holdings		7.00		11-1-2021		375,000		411,563
Seagate Technology HDD Holdings		7.75		12-15-2018		1,385,000		1,526,963
								2,995,276
Internet Software & Services : 0.11%
Tencent Holdings Limited 144A		4.63		12-12-2016		750,000		815,713
Materials : 0.77%
Metals & Mining : 0.58%
ArcelorMittal		5.00		2-25-2017		725,000		742,303
Gold Fields Orogen Holdings		4.88		10-7-2020		1,300,000		1,266,643
Novelis Incorporated		8.38		12-15-2017		550,000		607,750
Novelis Incorporated		8.75		12-15-2020		725,000		819,250
Vale Overseas Limited		4.38		1-11-2022		750,000		774,750
								4,210,696
Paper & Forest Products : 0.19%
Sappi Limited 144A		7.50		6-15-2032		1,560,000		1,357,200
Telecommunication Services : 1.84%
Diversified Telecommunication Services : 1.42%
Ericsson LM		4.13		5-15-2022		750,000		764,576
Intelsat Bermuda Limited		11.25		2-4-2017		490,000		519,400
Intelsat Jackson Holdings Limited		7.25		4-1-2019		1,425,000		1,528,313
Intelsat Jackson Holdings Limited		7.50		4-1-2021		525,000		569,625
Intelsat Jackson Holdings SA		7.25		10-15-2020		875,000		936,250
Intelsat Jackson Holdings SA 144A		7.25		10-15-2020		900,000		963,000

17

PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED) WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Security name			Interest rate			Maturity date	Principal		Value
Diversified Telecommunication Services (continued)
Intelsat Luxembourg SA ¥				11.50	%	2-4-2017	$	2,675,000	$	2,835,500
Qtel International Finance Limited				5.00		10-19-2025		300,000		332,250
Sable International Finance Limited				7.75		2-15-2017		350,000		371,875
Virgin Media Finance plc				6.50		1-15-2018		650,000		695,500
Vivendi SA 144A				4.75		4-12-2022		750,000		774,599
										10,290,888
Wireless Telecommunication Services : 0.42%
Digicel Group Limited 144A				12.00		4-1-2014		1,335,000		1,438,463
Globo Communicacoes Participacoes SA 144A				4.88		4-11-2022		750,000		821,250
Telesat Canada Incorporated 144A				6.00		5-15-2017		775,000		813,750
										3,073,463
Utilities : 0.25%
Electric Utilities : 0.25%
Comision Federal de Electricidad 144A				4.88		5-26-2021		650,000		721,500
Eskom Holdings Limited				5.75		1-26-2021		1,000,000		1,105,000
										1,826,500
Total Yankee Corporate Bonds and Notes (Cost $55,263,989)										58,140,961
Short-Term Investments : 2.47%
			Yield			Shares
Investment Companies : 2.47%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##				0.14		17,924,094				17,924,094
Total Short-Term Investments (Cost $17,924,094)										17,924,094
Total investments in securities (Cost $914,024,817)*	132.34	%								960,200,761
Other assets and liabilities, net	(32.34	)								(234,651,929	)
Total net assets	100.00	%							$	725,548,832

± Variable rate investment

144A Security that may be resold to “qualified institutional buyers” under Rule 144A or security offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(c) Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

† Non-income-earning security

(i) Illiquid security

%% Security issued on a when-issued basis.

(s) Security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on this security.

(a) Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

@ Foreign bond principal is denominated in local currency.

¤ Security issued in zero coupon form with no periodic interest payments.

< All or a portion of the position represents an unfunded loan commitment.

¥ 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.

(l) Investment in an affiliate

(u) Rate shown is the 7-day annualized yield at period end.

18

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND PORTFOLIO OF INVESTMENTS — January 31, 2013 (UNAUDITED)

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

* Cost for federal income tax purposes is $918,221,390 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	52,024,318
Gross unrealized depreciation		(10,044,947	)
Net unrealized appreciation	$	41,979,371

19

WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (the “Fund”)

NOTES TO PORTFOLIO OF INVESTMENTS – JANUARY 31, 2013 (UNAUDITED)

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with maturities of 60 days or less generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Equity securities that are listed on a foreign or domestic exchange, except for The Nasdaq Stock Market, Inc. (“Nasdaq”), are valued at the official closing price or, if none, the last sales price. Securities listed on Nasdaq are valued at the Nasdaq Official Closing Price (“NOCP”). If no NOCP is available, securities are valued at the last sales price. If no sales price is shown on the Nasdaq, the bid price will be used. If no sale occurs on the primary exchange or market for the security that day or if no sale occurs and no bid price is shown on Nasdaq, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Securities denominated in foreign currencies are translated into U.S. dollars using the rates of exchange in effect on the day of valuation at a time specified by the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”).

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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 by procedures established in good faith and approved 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 Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology 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 input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker 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 adviser 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. Assets, including investment securities, and liabilities denominated in foreign currency are translated into U.S. dollars at the rates of exchange at a time specified by the Management Valuation Team on the date of valuation. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Reported 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 in changes in exchange rates.

The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are recorded with net realized and unrealized gains or losses from investments. Gains and losses from certain foreign currency transactions are treated as ordinary income for U.S. federal income tax purposes.

Forward foreign currency contracts

The Fund may be subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on foreign currency related transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains or losses on the contracts. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty.

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.

Term loans

The Fund may invest in term loans. The Fund begins earning interest when the loans are funded. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. The Fund assumes the credit risk of the borrower and there could be potential loss to the Fund in the event of default by the borrower.

As of January 31, 2013, the Fund had unfunded loan commitments of $10,445,634.

Fair valuation measurements

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

    Level 1 – quoted prices in active markets for identical securities

    Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds,

                    credit risk, use of amortized cost, etc.)

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

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

As of January 31, 2013, the inputs used in valuing investments in securities, which are carried at fair value, were as follows:

Investments in securities	Quoted prices (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	19,541,186	$	0	$	19,541,186
Asset-backed securities		0		930,451		0		930,451
Equity securities
Common stocks		652,293		0		1,161		653,454
Preferred stocks		720,090		0		0		720,090
Corporate bonds and notes		0		423,631,612		0		423,631,612
Foreign corporate bonds and notes		0		28,674,213		0		28,674,213
Foreign government bonds		0		200,312,348		0		200,312,348
Non agency mortgage-backed securities		0		56,559,904		0		56,559,904
Term loans		0		137,450,735		15,661,713		153,112,448
Yankee corporate bonds and notes		0		58,140,961		0		58,140,961
Short-term investments
Investment companies		17,924,094		0		0		17,924,094
	$	19,296,477	$	925,241,410	$	15,662,874	$	960,200,761

As of January 31, 2013, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments	Quoted prices (Level 1)		Significant other observable  inputs (Level 2)			Significant unobservable inputs (Level 3)		Total
Forward foreign currency contracts+	$	0	$	(508,026	)	$	0	$	(508,026	)

+ Forward foreign currency contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the three months ended January 31, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

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

	Common stocks			Term loans			Total
Balance as of October 31, 2012	$	2,322		$	16,839,203		$	16,841,525
Accrued discounts (premiums)		0			4,892			4,892
Realized gains (losses)		0			(2,828	)		(2,828	)
Change in unrealized gains (losses)		(1,161	)		194,934			193,773
Purchases		0			11,490,176			11,490,176
Sales		0			(2,761,425	)		(2,761,425	)
Transfers into Level 3		0			598,478			598,478
Transfers out of Level 3		0			(10,701,717	)		(10,701,717	)
Balance as of January 31, 2013	$	1,161		$	15,661,713		$	15,662,874
Change in unrealized gains (losses) relating to securities still held at January 31, 2013	$	1,161		$	149,370		$	150,531

The investments types categorized above were valued using indicative broker quotes and are therefore considered Level 3 inputs.

Derivative transactions

As of January 31, 2013, the Fund entered into forward foreign currency exchange contracts for economic hedging purposes. At January 31, 2013, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty		Contracts to receive		U.S. value at January 31, 2013		In exchange for U.S. $		Unrealized gains (losses)
2-21-2013		State Street Bank		2,700,000 PLN	$	871,952	$	856,466	$	15,486
2-28-2013		State Street Bank		23,400,000 MYR		7,519,056		7,643,062		(124,006	)
2-28-2013		State Street Bank		23,400,000 MYR		7,519,056		7,658,321		(139,265	)
3-6-2013		State Street Bank		150,000,000 MXN		11,762,283		11,485,452		276,831
Forward foreign currency contracts to sell: Exchange date	Counterparty		Contracts to deliver		U.S. value at January 31, 2013		In exchange for U.S. $		Unrealized gains (losses)
2-21-2013		State Street Bank		38,500,000 PLN	$	12,433,391	$	12,058,381	$	(375,010	)
4-29-2013		State Street Bank		12,950,000 TRY		7,285,262		7,229,709		(55,553	)
4-30-2013		State Street Bank		64,000,000 ZAR		7,072,761		6,966,252		(106,509	)

List of Abbreviation

ACA — ACA Financial Guaranty Corporation

ADR — American depositary receipt

ADS — American depositary shares

AGC — Assured Guaranty Corporation

AGM — Assured Guaranty Municipal

Ambac — Ambac Financial Group Incorporated

AMT — Alternative minimum tax

AUD — Australian dollar

BAN — Bond anticipation notes

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazilian real

CAB — Capital appreciation bond

CAD — Canadian dollar

CCAB — Convertible capital appreciation bond

CDA — Community Development Authority

CDO — Collateralized debt obligation

CHF — Swiss franc

COP — Certificate of participation

DKK — Danish krone

DRIVER — Derivative inverse tax-exempt receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETF — Exchange-traded fund

EUR — Euro

FDIC — Federal Deposit Insurance Corporation

FFCB — Federal Farm Credit Banks

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Administration

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FICO — The Financing Corporation

FNMA — Federal National Mortgage Association

FSA — Farm Service Agency

GBP — Great British pound

GDR — Global depositary receipt

GNMA — Government National Mortgage Association

GO — General obligation

HCFR — Healthcare facilities revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher education facilities authority revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong dollar

HUD — Department of Housing and Urban Development

HUF — Hungarian forint

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Industrial development revenue

IEP — Irish pound

JPY — Japanese yen

KRW — Republic of Korea won

LIBOR — London Interbank Offered Rate

LIQ — Liquidity agreement

LLC — Limited liability company

LLP — Limited liability partnership

LOC — Letter of credit

LP — Limited partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multifamily housing revenue

MSTR — Municipal securities trust receipts

MTN — Medium-term note

MUD — Municipal Utility District

MXN — Mexican peso

MYR — Malaysian ringgit

National — National Public Finance Guarantee Corporation

NOK — Norwegian krone

NZD — New Zealand dollar

PCFA — Pollution Control Financing Authority

PCL — Public Company Limited

PCR — Pollution control revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable floating option tax-exempt receipts

plc — Public limited company

PLN — Polish zloty

PUTTER — Puttable tax-exempt receipts

R&D — Research & development

Radian — Radian Asset Assurance

RAN — Revenue anticipation notes

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real estate investment trust

ROC — Reset option certificates

SAVRS — Select auction variable rate securities

SBA — Small Business Authority

SEK — Swedish krona

SFHR — Single-family housing revenue

SFMR — Single-family mortgage revenue

SGD — Singapore dollar

SKK — Slovakian koruna

SPA — Standby purchase agreement

SPDR — Standard & Poor’s Depositary Receipts

STRIPS — Separate trading of registered interest and

principal securities

TAN — Tax anticipation notes

TBA — To be announced

TIPS — Treasury inflation-protected securities

TRAN — Tax revenue anticipation notes

TRY — Turkish lira

TTFA — Transportation Trust Fund Authority

TVA — Tennessee Valley Authority

ZAR — South African rand

ITEM 2.     CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Advantage Multi-Sector Income Fund (the “Trust”) 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 Trust 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 Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s 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 Advantage Multi-Sector Income Fund
	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President
	Date: March 26, 2013

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 Advantage Multi-Sector Income Fund
	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President
	Date: March 26, 2013
	By:	/s/ Jeremy DePalma
		Jeremy DePalma
		Treasurer
	Date: March 26, 2013