N-Q 1 d162555dnq.htm FORM N-Q Form N-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21507

 

 

Wells Fargo Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

 

 

525 Market Street, 12th Floor,

San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

 

 

C. David Messman

Wells Fargo Funds Management, LLC

525 Market Street, 12th 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, 2016

 

 

 


ITEM 1. INVESTMENTS


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Agency Securities : 2.70%

          

FHLMC ±

     4.47     9-1-2032       $ 1,221,749       $ 1,298,813   

FHLMC

     8.50        7-1-2028         55,291         68,409   

FHLMC

     8.50        3-1-2030         33,813         34,436   

FHLMC Series 1383 ±

     2.51        2-1-2037         405,456         429,941   

FHLMC Series 196 Class A ±

     1.23        12-15-2021         29,357         29,699   

FHLMC Series 2011-K16 Class B ±144A

     4.75        11-25-2046         1,000,000         1,081,628   

FHLMC Series 2011-K701 Class B ±144A

     4.29        7-25-2048         165,000         169,869   

FHLMC Series 2011-K702 Class B ±144A

     4.77        4-25-2044         740,000         774,534   

FHLMC Series 2012-K17 Class B ±144A

     4.35        12-25-2044         675,000         715,751   

FHLMC Series 2012-K18 Class B ±144A

     4.25        1-25-2045         810,000         852,225   

FHLMC Series 2012-K501 Class C ±144A

     3.52        11-25-2046         800,000         803,102   

FHLMC Series 2012-K705 Class B ±144A

     4.16        9-25-2044         1,000,000         1,035,354   

FHLMC Series 2012-K706 Class B ±144A

     4.03        11-25-2044         500,000         517,763   

FHLMC Series 2012-K706 Class C ±144A

     4.03        11-25-2044         805,000         834,085   

FHLMC Series 2012-K707 Class B ±144A

     3.88        1-25-2047         930,000         958,621   

FHLMC Series 2012-K709 Class B ±144A

     3.87        4-25-2045         1,000,000         1,026,059   

FHLMC Series 2012-K711 Class B ±144A

     3.56        8-25-2045         264,000         270,769   

FHLMC Series 2013-K30 Class B ±144A

     3.67        6-25-2045         700,000         714,591   

FHLMC Series 2013-K713 Class B ±144A

     3.16        4-25-2046         1,000,000         1,012,384   

FHLMC Series 2390 Class FD ±

     0.88        12-15-2031         26,815         26,862   

FHLMC Series 2567 Class FH ±

     0.83        2-15-2033         82,374         83,212   

FHLMC Series K007 Class X1 ±(c)

     1.33        4-25-2020         948,400         33,803   

FHLMC Series K016 Class X1 ±(c)

     1.71        10-25-2021         377,348         26,988   

FHLMC Series K020 Class X1 ±(c)

     1.59        5-25-2022         6,710,511         501,948   

FNMA ±

     2.09        9-1-2037         506,386         534,377   

FNMA

     6.00        4-1-2033         65,871         68,810   

FNMA

     6.50        11-1-2032         58,632         61,606   

FNMA

     7.50        7-1-2017         5,360         5,392   

FNMA

     7.50        10-1-2028         2,943         2,961   

FNMA

     7.50        2-1-2030         31,687         32,165   

FNMA

     7.50        9-1-2030         78,156         83,591   

FNMA

     8.00        6-1-2030         10,861         11,017   

FNMA Series 1996-46 Class FA ±

     0.93        8-25-2021         16,832         16,941   

FNMA Series 1997-20 Class IO ±(c)

     1.84        3-25-2027         1,254,420         37,567   

FNMA Series 2001-25 Class Z

     6.00        6-25-2031         168,140         190,517   

FNMA Series 2001-35 Class F ±

     1.03        7-25-2031         7,289         7,406   

FNMA Series 2001-57 Class F ±

     0.93        6-25-2031         7,338         7,430   

FNMA Series 2002-77 Class FH ±

     0.83        12-18-2032         55,622         56,119   

FNMA Series 2002-97 Class FR ±

     0.98        1-25-2033         13,121         13,282   

FNMA Series G91-16 Class F ±

     0.88        6-25-2021         16,079         16,175   

FNMA Series G92-17 Class F ±

     1.48        3-25-2022         55,007         55,935   

GNMA

     6.50        6-15-2028         37,687         43,172   

GNMA

     7.25        7-15-2017         2,115         2,121   

GNMA

     7.25        8-15-2017         11,088         11,183   

GNMA

     7.25        8-15-2017         4,824         4,840   

GNMA

     7.25        9-15-2017         9,476         9,572   

GNMA

     7.25        10-15-2017         17,299         17,612   

GNMA

     7.25        10-15-2017         6,998         7,063   

GNMA

     7.25        11-15-2017         8,980         9,070   

GNMA

     7.25        1-15-2018         2,717         2,725   

GNMA

     7.25        1-15-2018         5,686         5,705   

GNMA

     7.25        2-15-2018         11,043         11,162   

GNMA

     7.25        5-15-2018         6,315         6,337   

Total Agency Securities (Cost $13,751,895)

  

     14,632,699   
          

 

 

 

Asset-Backed Securities : 0.11%

          

CVS Pass-Through Trust Series T

     6.04        12-10-2028         550,536         612,955   
          

 

 

 

Total Asset-Backed Securities (Cost $616,303)

  

     612,955   
          

 

 

 

 

 

1


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name                 Shares      Value  

Common Stocks : 0.08%

          

Materials : 0.00%

          

Chemicals : 0.00%

          

LyondellBasell Industries NV Class A

          9       $ 702   
          

 

 

 

Telecommunication Services : 0.08%

          

Diversified Telecommunication Services : 0.08%

          

Fairpoint Communications Incorporated †

          28,903         433,545   
          

 

 

 

Total Common Stocks (Cost $649,736)

             434,247   
          

 

 

 
     Interest rate     Maturity date      Principal         

Corporate Bonds and Notes : 72.21%

          

Consumer Discretionary : 13.48%

          

Auto Components : 0.61%

          

Cooper Tire & Rubber Company (i)

     7.63     3-15-2027       $ 1,680,000         1,747,200   

Cooper Tire & Rubber Company

     8.00        12-15-2019         550,000         610,500   

Goodyear Tire & Rubber Company

     7.00        5-15-2022         400,000         427,800   

Goodyear Tire & Rubber Company

     8.75        8-15-2020         468,000         539,370   
             3,324,870   
          

 

 

 

Distributors : 0.14%

          

LKQ Corporation

     4.75        5-15-2023         800,000         754,000   
          

 

 

 

Diversified Consumer Services : 1.21%

          

Monitronics International

     9.13        4-1-2020         375,000         300,938   

Service Corporation International

     7.00        6-15-2017         1,410,000         1,491,075   

Service Corporation International

     7.50        4-1-2027         2,993,000         3,434,468   

Service Corporation International

     7.63        10-1-2018         680,000         761,178   

Service Corporation International

     8.00        11-15-2021         475,000         558,125   
             6,545,784   
          

 

 

 

Hotels, Restaurants & Leisure : 3.20%

          

CCM Merger Incorporated 144A

     9.13        5-1-2019         6,270,000         6,458,100   

Greektown Holdings LLC 144A

     8.88        3-15-2019         7,625,000         7,510,625   

Hilton Worldwide Finance LLC

     5.63        10-15-2021         195,000         200,850   

Pinnacle Entertainment Incorporated

     7.50        4-15-2021         2,620,000         2,724,800   

Speedway Motorsports Incorporated

     5.13        2-1-2023         425,000         423,938   
             17,318,313   
          

 

 

 

Household Durables : 0.43%

          

American Greetings Corporation

     7.38        12-1-2021         2,000,000         2,035,000   

Tempur Sealy International Incorporated 144A

     5.63        10-15-2023         105,000         107,100   

Tempur Sealy International Incorporated

     6.88        12-15-2020         200,000         211,500   
             2,353,600   
          

 

 

 

Internet & Catalog Retail : 0.15%

          

Expedia Incorporated

     5.95        8-15-2020         750,000         819,600   
          

 

 

 

Leisure Products : 0.11%

          

Vista Outdoor Incorporated 144A

     5.88        10-1-2023         600,000         610,500   
          

 

 

 

Media : 6.30%

          

Altice US Finance I Corporation 144A

     5.38        7-15-2023         1,395,000         1,401,975   

Altice US Finance II Corporation 144A

     7.75        7-15-2025         2,030,000         1,857,450   

 

2


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Media (continued)

  

Cable One Incorporated 144A

     5.75     6-15-2022       $ 375,000       $ 378,750   

Cablevision Systems Corporation

     8.63        9-15-2017         1,310,000         1,362,400   

CCO Holdings LLC

     5.13        2-15-2023         300,000         299,250   

CCO Holdings LLC 144A

     5.13        5-1-2023         475,000         473,753   

CCO Holdings LLC

     5.25        9-30-2022         1,250,000         1,265,625   

CCO Holdings LLC 144A

     5.38        5-1-2025         4,150,000         4,108,500   

CCO Holdings LLC 144A

     5.88        5-1-2027         705,000         694,425   

CCO Holdings LLC

     6.63        1-31-2022         775,000         820,531   

CCO Holdings LLC

     7.38        6-1-2020         1,100,000         1,144,000   

CCOH Safari LLC 144A

     5.75        2-15-2026         3,125,000         3,108,984   

Cequel Communications Holdings I LLC 144A

     5.13        12-15-2021         1,170,000         1,058,148   

Cinemark USA Incorporated

     7.38        6-15-2021         775,000         807,938   

CSC Holdings LLC

     7.88        2-15-2018         1,000,000         1,052,500   

CSC Holdings LLC

     8.63        2-15-2019         383,000         407,895   

DIRECTV Holdings LLC

     3.80        3-15-2022         750,000         757,812   

EchoStar DBS Corporation

     7.13        2-1-2016         125,000         125,000   

Gray Television Incorporated

     7.50        10-1-2020         4,600,000         4,743,750   

Interpublic Group of Companies

     4.00        3-15-2022         750,000         768,422   

Lamar Media Corporation

     5.88        2-1-2022         690,000         716,738   

LIN Television Corporation

     6.38        1-15-2021         275,000         287,375   

Live Nation Entertainment Incorporated 144A

     7.00        9-1-2020         200,000         210,000   

National CineMedia LLC

     6.00        4-15-2022         1,710,000         1,750,613   

National CineMedia LLC

     7.88        7-15-2021         1,000,000         1,032,500   

Nexstar Broadcasting Group Incorporated 144A

     6.13        2-15-2022         175,000         166,250   

Nexstar Broadcasting Group Incorporated

     6.88        11-15-2020         1,750,000         1,754,375   

Outfront Media Capital Corporation

     5.63        2-15-2024         20,000         20,450   

Outfront Media Capital Corporation

     5.88        3-15-2025         775,000         787,594   

Time Warner Cable Incorporated

     4.00        1-15-2022         750,000         781,937   
     34,144,940   
          

 

 

 

Multiline Retail : 0.11%

          

Macy’s Retail Holdings Incorporated

     3.88        1-15-2022         600,000         590,938   
          

 

 

 

Specialty Retail : 1.22%

          

ABC Supply Company Incorporated 144A

     5.63        4-15-2021         450,000         459,000   

ABC Supply Company Incorporated 144A

     5.75        12-15-2023         300,000         306,000   

Advance Auto Parts Incorporated

     4.50        1-15-2022         600,000         625,373   

Century Intermediate Holding Company (PIK at 10.50%) 144A(i)¥

     9.75        2-15-2019         300,000         306,000   

L Brands Incorporated

     6.63        4-1-2021         750,000         834,375   

Penske Auto Group Incorporated

     5.38        12-1-2024         1,130,000         1,096,100   

Penske Auto Group Incorporated

     5.75        10-1-2022         1,155,000         1,146,338   

Sonic Automotive Incorporated

     5.00        5-15-2023         1,174,000         1,106,495   

Sonic Automotive Incorporated

     7.00        7-15-2022         700,000         726,250   
     6,605,931   
          

 

 

 

Consumer Staples : 1.10%

          

Beverages : 0.15%

          

Cott Beverages Incorporated

     6.75        1-1-2020         790,000         813,700   
          

 

 

 

Food & Staples Retailing : 0.11%

          

SABMiller Holdings Incorporated 144A

     3.75        1-15-2022         600,000         621,288   
          

 

 

 

Food Products : 0.63%

          

B&G Foods Incorporated

     4.63        6-1-2021         300,000         299,250   

Darling Ingredients Incorporated

     5.38        1-15-2022         180,000         176,400   

Kraft Foods Group Incorporated

     3.50        6-6-2022         750,000         767,000   

Pilgrim’s Pride Corporation 144A

     5.75        3-15-2025         1,130,000         1,087,625   

Pinnacle Foods Incorporated 144A

     5.88        1-15-2024         75,000         77,625   

Simmons Foods Incorporated 144A

     7.88        10-1-2021         1,100,000         973,500   

 

3


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name    Interest rate     Maturity date      Principal     

Value

 

Food Products (continued)

  

Treehouse Foods Incorporated 144A

     6.00     2-15-2024       $ 50,000       $ 51,438   
     3,432,838   
          

 

 

 

Household Products : 0.07%

          

Central Garden & Pet Company

     6.13        11-15-2023         250,000         255,625   

Spectrum Brands Incorporated 144A

     5.75        7-15-2025         100,000         102,500   
     358,125   
          

 

 

 

Tobacco : 0.14%

          

Reynolds American Incorporated

     6.88        5-1-2020         650,000         758,668   
          

 

 

 

Energy : 13.83%

          

Energy Equipment & Services : 5.07%

          

Bristow Group Incorporated

     6.25        10-15-2022         4,478,000         3,078,625   

Cleaver Brooks Incorporated 144A

     8.75        12-15-2019         95,000         89,300   

Era Group Incorporated

     7.75        12-15-2022         4,425,000         3,363,000   

Forum Energy Technologies Incorporated

     6.25        10-1-2021         1,000,000         800,000   

Gulfmark Offshore Incorporated

     6.38        3-15-2022         3,725,000         1,154,750   

Hilcorp Energy Company 144A

     5.00        12-1-2024         500,000         386,250   

Hilcorp Energy Company 144A

     5.75        10-1-2025         1,300,000         1,017,250   

Hornbeck Offshore Services Incorporated

     5.00        3-1-2021         2,835,000         1,601,775   

Hornbeck Offshore Services Incorporated

     5.88        4-1-2020         1,860,000         1,116,000   

NGPL PipeCo LLC 144A

     7.12        12-15-2017         2,060,000         1,936,400   

NGPL PipeCo LLC 144A

     7.77        12-15-2037         10,740,000         8,081,850   

NGPL PipeCo LLC 144A

     9.63        6-1-2019         435,000         408,900   

PHI Incorporated

     5.25        3-15-2019         5,525,000         4,461,438   
     27,495,538   
          

 

 

 

Oil, Gas & Consumable Fuels : 8.76%

          

Alpha Natural Resources Incorporated (s)

     6.25        6-1-2021         475,000         1,188   

Arch Coal Incorporated (s)

     7.00        6-15-2019         1,200,000         7,500   

Arch Coal Incorporated (s)

     7.25        6-15-2021         475,000         3,859   

Berry Petroleum Company LLC

     6.38        9-15-2022         3,175,000         635,000   

Berry Petroleum Company LLC

     6.75        11-1-2020         320,000         70,400   

Continental Resources Company

     5.00        9-15-2022         675,000         472,500   

CSI Compressco LP

     7.25        8-15-2022         1,450,000         942,500   

Denbury Resources Incorporated

     4.63        7-15-2023         3,850,000         1,270,500   

Denbury Resources Incorporated

     5.50        5-1-2022         655,000         229,250   

Denbury Resources Incorporated

     6.38        8-15-2021         960,000         345,600   

El Paso LLC

     6.50        4-1-2020         750,000         765,515   

Energy Transfer Partners LP

     5.20        2-1-2022         750,000         671,987   

Exterran Partners LP

     6.00        4-1-2021         2,225,000         1,657,625   

Kinder Morgan Energy Partners LP

     3.95        9-1-2022         750,000         657,002   

Kinder Morgan Energy Partners LP

     5.55        6-1-2045         925,000         724,871   

Kinder Morgan Incorporated

     6.50        9-15-2020         285,000         285,303   

Kinder Morgan Incorporated

     7.00        6-15-2017         530,000         545,930   

Kinder Morgan Incorporated (i)

     7.42        2-15-2037         800,000         697,293   

Kinder Morgan Incorporated

     7.80        8-1-2031         1,850,000         1,774,846   

Nabors Industries Incorporated

     4.63        9-15-2021         750,000         557,108   

Northern Tier Energy LLC

     7.13        11-15-2020         2,125,000         2,021,725   

Overseas Shipholding Group Incorporated

     8.13        3-30-2018         1,166,000         1,160,170   

Phillips 66

     4.30        4-1-2022         625,000         639,081   

Pioneer Natural Resources Company

     3.95        7-15-2022         750,000         697,783   

Pioneer Natural Resources Company

     7.50        1-15-2020         1,220,000         1,289,269   

Rockies Express Pipeline LLC 144A

     5.63        4-15-2020         3,625,000         3,244,375   

Rockies Express Pipeline LLC 144A

     6.88        4-15-2040         4,038,000         3,068,880   

Rockies Express Pipeline LLC 144A(i)

     7.50        7-15-2038         2,350,000         1,880,000   

Sabine Oil & Gas Corporation (i)(s)

     7.25        6-15-2019         520,000         33,800   

Sabine Oil & Gas Corporation (i)(s)

     7.50        9-15-2020         3,500,000         227,500   

Sabine Pass Liquefaction LLC

     5.63        2-1-2021         850,000         777,750   

 

4


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Oil, Gas & Consumable Fuels (continued)

  

Sabine Pass Liquefaction LLC

     5.63     4-15-2023       $ 1,710,000       $ 1,500,525   

Sabine Pass Liquefaction LLC

     5.63        3-1-2025         460,000         395,600   

Sabine Pass Liquefaction LLC

     5.75        5-15-2024         1,625,000         1,425,938   

Sabine Pass Liquefaction LLC

     6.25        3-15-2022         3,550,000         3,270,438   

Sabine Pass LNG LP

     6.50        11-1-2020         4,245,000         4,388,269   

Sabine Pass LNG LP

     7.50        11-30-2016         3,210,000         3,326,363   

SemGroup Corporation

     7.50        6-15-2021         2,755,000         2,121,350   

Southern Star Central Corporation 144A

     5.13        7-15-2022         50,000         43,125   

Suburban Propane Partners LP

     7.38        8-1-2021         309,000         302,820   

Swift Energy Company (i)(s)

     7.13        6-1-2017         5,696,000         427,200   

Swift Energy Company (i)(s)

     8.88        1-15-2020         1,075,000         80,625   

Ultra Petroleum Corporation 144A

     5.75        12-15-2018         410,000         57,892   

Ultra Petroleum Corporation 144A

     6.13        10-1-2024         8,475,000         1,186,500   

Weatherford International Incorporated

     6.35        6-15-2017         650,000         572,000   

Western Gas Partners LP

     5.38        6-1-2021         503,000         469,610   

Williams Partners LP

     3.35        8-15-2022         750,000         532,709   
     47,457,074   
          

 

 

 

Financials : 15.64%

          

Banks : 0.97%

          

Bank of America Corporation

     5.70        1-24-2022         250,000         282,071   

CIT Group Incorporated

     5.25        3-15-2018         100,000         103,312   

CIT Group Incorporated 144A

     5.50        2-15-2019         1,275,000         1,316,438   

CIT Group Incorporated 144A

     6.63        4-1-2018         550,000         581,625   

Citigroup Incorporated

     4.50        1-14-2022         250,000         269,078   

Citigroup Incorporated

     6.00        8-15-2017         650,000         690,469   

City National Bank

     5.38        7-15-2022         500,000         563,290   

HSBC Bank USA

     6.00        8-9-2017         650,000         690,364   

JPMorgan Chase & Company

     3.38        5-1-2023         750,000         729,932   
     5,226,579   
          

 

 

 

Capital Markets : 1.13%

          

Ace Securities Corporation ±

     3.05        6-25-2033         399,612         393,150   

Blackstone Holdings Finance Company LLC 144A

     5.88        3-15-2021         750,000         866,594   

Goldman Sachs Group Incorporated

     5.75        1-24-2022         750,000         851,584   

Jefferies Finance LLC 144A

     6.88        4-15-2022         3,560,000         2,803,500   

Jefferies Finance LLC 144A

     7.38        4-1-2020         200,000         167,000   

Jefferies Finance LLC 144A

     7.50        4-15-2021         475,000         387,422   

Neuberger Berman Group LLC 144A

     5.88        3-15-2022         650,000         677,625   
     6,146,875   
          

 

 

 

Consumer Finance : 4.05%

          

Ally Financial Incorporated

     5.75        11-20-2025         675,000         673,313   

Ally Financial Incorporated

     8.00        12-31-2018         1,155,000         1,260,394   

Ally Financial Incorporated

     8.00        3-15-2020         755,000         845,600   

Discover Financial Services

     5.20        4-27-2022         750,000         816,158   

Ford Motor Credit Company LLC

     5.00        5-15-2018         650,000         681,315   

Ford Motor Credit Company LLC

     8.00        12-15-2016         250,000         263,042   

Homer City Generation LLC (PIK at 9.23%) 144A¥

     8.73        10-1-2026         1,267,475         988,630   

Navient Corporation

     5.88        3-25-2021         610,000         527,650   

Navient Corporation

     8.00        3-25-2020         3,280,000         3,230,800   

SLM Corporation

     6.13        3-25-2024         1,220,000         1,001,925   

SLM Corporation

     7.25        1-25-2022         930,000         827,700   

SLM Corporation

     8.45        6-15-2018         1,675,000         1,733,625   

Springleaf Finance Corporation

     5.75        9-15-2016         1,100,000         1,108,250   

Springleaf Finance Corporation

     6.00        6-1-2020         1,735,000         1,583,188   

Springleaf Finance Corporation

     6.50        9-15-2017         200,000         201,500   

Springleaf Finance Corporation

     6.90        12-15-2017         4,550,000         4,651,920   

 

5


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Consumer Finance (continued)

  

Springleaf Finance Corporation

     7.75     10-1-2021       $ 500,000       $ 470,000   

Springleaf Finance Corporation

     8.25        10-1-2023         1,160,000         1,093,300   
     21,958,310   
          

 

 

 

Diversified Financial Services : 1.97%

          

Denali Borrower LLC 144A

     5.63        10-15-2020         3,510,000         3,694,275   

General Electric Capital Corporation

     4.65        10-17-2021         187,000         210,184   

Infinity Acquisition LLC 144A(i)

     7.25        8-1-2022         2,615,000         2,222,750   

ING US Incorporated

     5.50        7-15-2022         750,000         839,007   

Moody’s Corporation

     5.50        9-1-2020         1,302,000         1,451,128   

NewStar Financial Incorporated

     7.25        5-1-2020         2,450,000         2,278,500   
     10,695,844   
          

 

 

 

Insurance : 1.77%

          

American International Group Incorporated

     4.88        6-1-2022         750,000         800,099   

Endurance Specialty Holdings Limited

     7.00        7-15-2034         575,000         698,257   

Hartford Financial Services Group Incorporated

     5.13        4-15-2022         650,000         714,954   

Hub Holdings LLC (PIK at 8.88%) 144A¥

     8.13        7-15-2019         2,900,000         2,436,000   

Hub International Limited 144A

     7.88        10-1-2021         2,295,000         2,013,863   

Liberty Mutual Group Incorporated 144A

     4.95        5-1-2022         750,000         811,237   

ProAssurance Corporation

     5.30        11-15-2023         750,000         811,935   

Progressive Corporation ±

     6.70        6-15-2067         600,000         597,000   

W.R. Berkley Corporation

     4.63        3-15-2022         650,000         700,035   
     9,583,380   
          

 

 

 

Real Estate Management & Development : 0.53%

          

Onex Corporation 144A

     7.75        1-15-2021         3,205,000         2,876,488   
          

 

 

 

REITs : 5.22%

          

Alexandria Real Estate Company

     4.60        4-1-2022         650,000         694,394   

American Tower Corporation

     5.90        11-1-2021         650,000         736,871   

Crown Castle International Corporation

     4.88        4-15-2022         460,000         482,425   

Crown Castle International Corporation

     5.25        1-15-2023         95,000         101,175   

DuPont Fabros Technology Incorporated LP

     5.63        6-15-2023         2,975,000         2,989,875   

DuPont Fabros Technology Incorporated LP

     5.88        9-15-2021         4,655,000         4,794,650   

Equinix Incorporated

     5.88        1-15-2026         425,000         439,875   

ESH Hospitality Incorporated 144A

     5.25        5-1-2025         1,100,000         1,059,432   

Essex Portfolio LP

     3.63        8-15-2022         750,000         767,204   

Health Care REIT Incorporated

     5.25        1-15-2022         650,000         710,797   

Iron Mountain Incorporated

     5.75        8-15-2024         4,850,000         4,789,375   

Iron Mountain Incorporated 144A

     6.00        10-1-2020         230,000         244,950   

Iron Mountain Incorporated

     6.00        8-15-2023         2,960,000         3,078,400   

Sabra Health Care Incorporated

     5.38        6-1-2023         850,000         852,125   

Sabra Health Care Incorporated

     5.50        2-1-2021         1,100,000         1,122,000   

The Geo Group Incorporated

     5.13        4-1-2023         500,000         475,000   

The Geo Group Incorporated

     5.88        1-15-2022         2,640,000         2,616,900   

The Geo Group Incorporated

     5.88        10-15-2024         465,000         447,563   

The Geo Group Incorporated

     6.63        2-15-2021         1,190,000         1,215,288   

Ventas Realty LP

     4.25        3-1-2022         650,000         677,949   
     28,296,248   
          

 

 

 

Health Care : 6.18%

          

Biotechnology : 0.14%

          

Amgen Incorporated

     3.63        5-15-2022         750,000         777,928   
          

 

 

 

Health Care Equipment & Supplies : 0.46%

          

Crimson Merger Sub Incorporated 144A

     6.63        5-15-2022         2,400,000         1,608,000   

Hill-Rom Holdings Incorporated 144A

     5.75        9-1-2023         200,000         203,750   

 

6


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Health Care Equipment & Supplies (continued)

  

Hologic Incorporated 144A

     5.25     7-15-2022       $ 670,000       $ 693,450   
     2,505,200   
          

 

 

 

Health Care Providers & Services : 3.54%

          

Acadia Healthcare Company Incorporated

     5.63        2-15-2023         270,000         255,116   

Centene Corporation

     5.75        6-1-2017         1,000,000         1,035,000   

Coventry Health Care Incorporated

     5.45        6-15-2021         750,000         843,568   

DaVita HealthCare Partners Incorporated

     5.00        5-1-2025         445,000         437,769   

DaVita HealthCare Partners Incorporated

     5.75        8-15-2022         525,000         546,656   

Express Scripts Holding Company

     3.90        2-15-2022         665,000         689,540   

HCA Incorporated

     6.50        2-15-2020         1,875,000         2,067,188   

HealthSouth Corporation 144A

     5.75        11-1-2024         500,000         493,545   

HealthSouth Corporation

     5.75        11-1-2024         30,000         29,613   

HealthSouth Corporation 144A

     5.75        9-15-2025         650,000         630,370   

HealthSouth Corporation

     7.75        9-15-2022         818,000         848,675   

Humana Incorporated

     7.20        6-15-2018         750,000         835,931   

Mednax Incorporated 144A

     5.25        12-1-2023         475,000         486,875   

Molina Healthcare Incorporated 144A

     5.38        11-15-2022         475,000         475,000   

MPT Operating Partnership LP

     6.38        2-15-2022         1,075,000         1,091,125   

MPT Operating Partnership LP

     6.88        5-1-2021         775,000         802,125   

Select Medical Corporation

     6.38        6-1-2021         6,215,000         5,282,750   

Team Health Incorporated 144A

     7.25        12-15-2023         750,000         783,750   

Tenet Healthcare Corporation

     6.00        10-1-2020         1,475,000         1,563,500   
     19,198,096   
          

 

 

 

Health Care Technology : 0.83%

          

Emdeon Incorporated

     11.00        12-31-2019         4,325,000         4,498,000   
          

 

 

 

Life Sciences Tools & Services : 0.16%

          

Life Technologies Corporation

     6.00        3-1-2020         750,000         841,474   
          

 

 

 

Pharmaceuticals : 1.05%

          

Endo Finance LLC 144A

     5.75        1-15-2022         715,000         711,425   

Endo Finance LLC 144A

     5.88        1-15-2023         375,000         372,188   

Endo Finance LLC 144A

     6.00        2-1-2025         775,000         765,406   

Endo Finance LLC 144A

     7.75        1-15-2022         2,385,000         2,489,344   

PRA Holdings Incorporated 144A

     9.50        10-1-2023         500,000         547,500   

Valeant Pharmaceuticals International Incorporated 144A

     7.25        7-15-2022         75,000         73,500   

Watson Pharmaceuticals Incorporated

     3.25        10-1-2022         750,000         748,506   
     5,707,869   
          

 

 

 

Industrials : 5.24%

          

Aerospace & Defense : 0.19%

          

BAE Systems Holdings Incorporated 144A

     3.80        10-7-2024         1,000,000         1,011,459   
          

 

 

 

Airlines : 0.38%

          

Aviation Capital Group Corporation 144A

     6.75        4-6-2021         1,320,000         1,475,100   

Delta Air Lines Incorporated

     4.75        11-7-2021         578,856         606,351   
     2,081,451   
          

 

 

 

Commercial Services & Supplies : 1.91%

          

ADT Corporation

     3.50        7-15-2022         750,000         676,875   

ADT Corporation

     4.13        6-15-2023         1,375,000         1,265,000   

ADT Corporation

     6.25        10-15-2021         1,605,000         1,665,188   

Aramark Services Incorporated 144A

     5.13        1-15-2024         120,000         123,900   

Berry Plastics Corporation 144A

     6.00        10-15-2022         215,000         219,300   

Covanta Holding Corporation

     5.88        3-1-2024         2,260,000         1,971,850   

 

7


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Commercial Services & Supplies (continued)

  

Covanta Holding Corporation

     6.38     10-1-2022       $ 1,500,000       $ 1,413,750   

Covanta Holding Corporation

     7.25        12-1-2020         1,480,000         1,497,575   

Penske Truck Leasing Company 144A

     3.75        5-11-2017         750,000         764,475   

Republic Services Incorporated

     3.55        6-1-2022         750,000         781,757   
     10,379,670   
          

 

 

 

Construction & Engineering : 0.88%

          

AECOM

     5.75        10-15-2022         215,000         217,419   

AECOM

     5.88        10-15-2024         2,610,000         2,600,213   

United Rentals North America Incorporated

     4.63        7-15-2023         1,200,000         1,168,500   

United Rentals North America Incorporated

     5.50        7-15-2025         850,000         759,688   
     4,745,820   
          

 

 

 

Professional Services : 0.15%

          

Ascent Capital Group Incorporated

     4.00        7-15-2020         375,000         214,219   

Verisk Analytics Incorporated

     5.80        5-1-2021         530,000         596,045   
     810,264   
          

 

 

 

Road & Rail : 0.12%

          

TTX Company 144A

     2.60        6-15-2020         650,000         648,138   
          

 

 

 

Trading Companies & Distributors : 1.48%

          

Ashtead Capital Incorporated 144A

     6.50        7-15-2022         4,100,000         4,182,000   

H&E Equipment Services Incorporated

     7.00        9-1-2022         4,125,000         3,764,063   

International Lease Finance Corporation 144A

     7.13        9-1-2018         75,000         81,188   
     8,027,251   
          

 

 

 

Transportation Infrastructure : 0.13%

          

Hornbeck Offshore Services Company

     1.50        9-1-2019         1,350,000         709,594   
          

 

 

 

Information Technology : 4.73%

          

Communications Equipment : 0.33%

          

CommScope Technologies Finance LLC 144A

     6.00        6-15-2025         1,100,000         1,069,750   

Motorola Solutions Incorporated

     3.75        5-15-2022         750,000         692,022   
     1,761,772   
          

 

 

 

Electronic Equipment, Instruments & Components : 1.32%

          

Jabil Circuit Incorporated

     8.25        3-15-2018         5,275,000         5,736,563   

L-3 Communications Corporation

     4.95        2-15-2021         750,000         779,749   

Zebra Technologies Corporation

     7.25        10-15-2022         600,000         624,000   
     7,140,312   
          

 

 

 

Internet Software & Services : 0.16%

          

Infor Software Parent LLC 144A

     6.50        5-15-2022         550,000         479,875   

Infor Software Parent LLC (PIK at 7.88%) 144A¥

     7.13        5-1-2021         550,000         391,875   
     871,750   
          

 

 

 

IT Services : 1.07%

          

Audatex North America Incorporated 144A

     6.00        6-15-2021         2,725,000         2,745,438   

Audatex North America Incorporated 144A

     6.13        11-1-2023         1,900,000         1,914,250   

First Data Corporation 144A

     5.00        1-15-2024         230,000         231,150   

First Data Corporation 144A

     5.75        1-15-2024         320,000         318,400   

 

8


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

IT Services (continued)

  

First Data Corporation 144A

     6.75     11-1-2020       $ 585,000       $ 616,444   
     5,825,682   
          

 

 

 

Semiconductors & Semiconductor Equipment : 0.30%

          

Micron Technology Incorporated 144A

     5.25        8-1-2023         375,000         303,750   

Micron Technology Incorporated 144A

     5.25        1-15-2024         175,000         142,188   

Micron Technology Incorporated

     5.50        2-1-2025         275,000         217,250   

Micron Technology Incorporated 144A

     5.63        1-15-2026         300,000         232,500   

Micron Technology Incorporated

     5.88        2-15-2022         850,000         756,500   
     1,652,188   
          

 

 

 

Software : 0.65%

          

Activision Blizzard Incorporated 144A

     5.63        9-15-2021         705,000         740,250   

Activision Blizzard Incorporated 144A

     6.13        9-15-2023         175,000         187,250   

Boxer Parent Company Incorporated (PIK at 9.75%) 144A¥

     9.00        10-15-2019         2,160,000         1,231,200   

CA Incorporated

     5.38        12-1-2019         750,000         817,072   

Emdeon Incorporated 144A

     6.00        2-15-2021         500,000         462,563   

SS&C Technologies Incorporated 144A

     5.88        7-15-2023         55,000         56,925   
     3,495,260   
          

 

 

 

Technology Hardware, Storage & Peripherals : 0.90%

          

Hewlett-Packard Company

     4.05        9-15-2022         750,000         742,148   

NCR Corporation

     5.88        12-15-2021         230,000         225,975   

NCR Corporation

     6.38        12-15-2023         3,950,000         3,908,012   
     4,876,135   
          

 

 

 

Materials : 1.41%

          

Chemicals : 0.14%

          

Dow Chemical Company

     4.13        11-15-2021         750,000         777,110   
          

 

 

 

Containers & Packaging : 1.27%

          

Ball Corporation

     5.25        7-1-2025         190,000         195,700   

Crown Cork & Seal Company Incorporated

     7.38        12-15-2026         35,000         37,450   

Crown Cork & Seal Company Incorporated (i)

     7.50        12-15-2096         600,000         594,000   

Owens-Brockway Glass Container Incorporated 144A

     5.88        8-15-2023         425,000         417,031   

Owens-Brockway Glass Container Incorporated 144A

     5.38        1-15-2025         575,000         536,188   

Owens-Brockway Glass Container Incorporated 144A

     6.38        8-15-2025         2,600,000         2,561,000   

Owens-Illinois Incorporated

     7.80        5-15-2018         1,295,000         1,411,550   

Sealed Air Corporation 144A

     5.13        12-1-2024         1,100,000         1,100,000   
     6,852,919   
          

 

 

 

Metals & Mining : 0.00%

          

Indalex Holdings Corporation (i)(s)(a)

     11.50        2-1-2020         3,170,000         0   
          

 

 

 

Telecommunication Services : 8.28%

          

Diversified Telecommunication Services : 3.01%

          

CenturyLink Incorporated

     5.80        3-15-2022         600,000         558,750   

Citizens Communications Company

     7.88        1-15-2027         355,000         273,350   

Frontier Communications Corporation

     8.13        10-1-2018         845,000         862,956   

Frontier Communications Corporation

     8.25        4-15-2017         1,040,000         1,089,400   

Frontier Communications Corporation

     8.50        4-15-2020         525,000         520,406   

GCI Incorporated

     6.75        6-1-2021         2,330,000         2,312,525   

GCI Incorporated

     6.88        4-15-2025         1,200,000         1,176,000   

Level 3 Financing Incorporated

     5.13        5-1-2023         975,000         979,875   

 

9


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Diversified Telecommunication Services (continued)

  

Level 3 Financing Incorporated

     5.38     8-15-2022       $ 300,000       $ 306,375   

Level 3 Financing Incorporated 144A

     5.38        1-15-2024         700,000         707,000   

Level 3 Financing Incorporated

     5.38        5-1-2025         975,000         981,094   

Level 3 Financing Incorporated

     5.63        2-1-2023         350,000         357,875   

Level 3 Financing Incorporated

     6.13        1-15-2021         175,000         183,313   

Level 3 Financing Incorporated

     7.00        6-1-2020         180,000         189,000   

Qwest Corporation (i)

     7.63        8-3-2021         230,000         229,713   

Syniverse Holdings Incorporated

     9.13        1-15-2019         6,805,000         2,585,900   

Windstream Corporation

     6.38        8-1-2023         800,000         578,000   

Windstream Corporation

     7.88        11-1-2017         2,330,000         2,434,850   
     16,326,382   
          

 

 

 

Wireless Telecommunication Services : 5.27%

          

Crown Castle Towers LLC 144A

     6.11        1-15-2040         750,000         824,361   

MetroPCS Wireless Incorporated

     6.63        11-15-2020         3,300,000         3,394,050   

SBA Communications Corporation

     4.88        7-15-2022         640,000         640,000   

SBA Communications Corporation

     5.63        10-1-2019         160,000         166,400   

SBA Communications Corporation

     5.75        7-15-2020         2,000,000         2,075,000   

Sprint Capital Corporation

     6.88        11-15-2028         13,915,000         9,183,897   

Sprint Capital Corporation

     8.75        3-15-2032         2,575,000         1,815,375   

Sprint Communications Incorporated

     7.00        8-15-2020         225,000         165,375   

Sprint Communications Incorporated

     11.50        11-15-2021         625,000         525,000   

Sprint Corporation

     7.13        6-15-2024         1,230,000         830,250   

Sprint Corporation

     7.63        2-15-2025         400,000         273,250   

Sprint Corporation

     7.88        9-15-2023         705,000         504,075   

T-Mobile USA Incorporated

     6.00        3-1-2023         300,000         301,650   

T-Mobile USA Incorporated

     6.13        1-15-2022         85,000         86,488   

T-Mobile USA Incorporated

     6.25        4-1-2021         165,000         168,300   

T-Mobile USA Incorporated

     6.38        3-1-2025         825,000         827,063   

T-Mobile USA Incorporated

     6.46        4-28-2019         160,000         165,000   

T-Mobile USA Incorporated

     6.50        1-15-2024         80,000         80,800   

T-Mobile USA Incorporated

     6.50        1-15-2026         225,000         223,875   

T-Mobile USA Incorporated

     6.54        4-28-2020         165,000         169,950   

T-Mobile USA Incorporated

     6.63        4-28-2021         920,000         951,050   

T-Mobile USA Incorporated

     6.63        4-1-2023         505,000         516,363   

T-Mobile USA Incorporated

     6.73        4-28-2022         3,490,000         3,585,975   

T-Mobile USA Incorporated

     6.84        4-28-2023         1,060,000         1,094,450   
     28,567,997   
          

 

 

 

Utilities : 2.32%

          

Electric Utilities : 0.51%

          

Great Plains Energy Incorporated

     4.85        6-1-2021         750,000         817,442   

Otter Tail Corporation (i)

     9.00        12-15-2016         1,835,000         1,929,627   
     2,747,069   
          

 

 

 

Gas Utilities : 0.43%

          

AmeriGas Finance LLC

     6.75        5-20-2020         1,775,000         1,757,250   

AmeriGas Finance LLC

     7.00        5-20-2022         615,000         602,700   
     2,359,950   
          

 

 

 

Independent Power & Renewable Electricity Producers : 1.12%

  

       

Calpine Corporation 144A

     6.00        1-15-2022         515,000         534,956   

Calpine Corporation 144A

     7.88        1-15-2023         530,000         565,775   

NSG Holdings LLC 144A

     7.75        12-15-2025         2,352,652         2,482,048   

Reliant Energy Incorporated

     9.24        7-2-2017         394,314         391,356   

Reliant Energy Incorporated

     9.68        7-2-2026         410,000         401,800   

TerraForm Power Operating LLC 144A

     5.88        2-1-2023         895,000         713,763   

 

10


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Independent Power & Renewable Electricity Producers (continued)

  

TerraForm Power Operating LLC 144A

     6.13     6-15-2025       $ 1,250,000       $ 965,625   
     6,055,323   
          

 

 

 

Multi-Utilities : 0.26%

          

Ameren Illinois Company

     9.75        11-15-2018         500,000         602,378   

CMS Energy Corporation

     5.05        3-15-2022         750,000         832,694   
     1,435,072   
          

 

 

 

Total Corporate Bonds and Notes (Cost $431,274,457)

  

     391,476,566   
          

 

 

 

Foreign Corporate Bonds and Notes @: 2.62%

          

Consumer Discretionary : 0.06%

          

Auto Components : 0.02%

          

HP Pelzer Holding GmbH (EUR)

     7.50        7-15-2021         100,000         111,580   
          

 

 

 

Internet & Catalog Retail : 0.04%

          

Priceline Group Incorporated (EUR)

     2.38        9-23-2024         200,000         210,148   
          

 

 

 

Consumer Staples : 0.12%

          

Food Products : 0.12%

          

BRF SA 144A (BRL)

     7.75        5-22-2018         3,100,000         639,407   
          

 

 

 

Energy : 0.28%

          

Energy Equipment & Services : 0.02%

          

Rapid Holding GmbH 144A (EUR)

     6.63        11-15-2020         100,000         111,011   
          

 

 

 

Oil, Gas & Consumable Fuels : 0.26%

          

Petroleos Mexicanos 144A (MXN)

     7.19        9-12-2024         28,200,000         1,405,898   
          

 

 

 

Financials : 1.69%

          

Banks : 1.59%

          

Eurofima (AUD)

     6.25        12-28-2018         2,450,000         1,907,045   

European Investment Bank (ZAR)

     9.00        3-31-2021         17,400,000         1,099,420   

KfW (TRY)

     5.00        1-16-2017         11,400,000         3,656,516   

KfW (AUD)

     5.00        3-19-2024         1,300,000         1,046,870   

Landwirtschaftliche Rentenbank (ZAR)

     8.25        5-23-2022         15,000,000         908,673   
     8,618,524   
          

 

 

 

Diversified Financial Services : 0.10%

          

AA Bond Company Limited (GBP)

     4.25        7-31-2043         200,000         293,402   

TES Finance plc (GBP)

     6.75        7-15-2020         200,000         259,474   
     552,876   
          

 

 

 

Materials : 0.12%

          

Chemicals : 0.12%

          

Albemarle Corporation (EUR)

     1.88        12-8-2021         600,000         623,304   
          

 

 

 

Telecommunication Services : 0.35%

          

Diversified Telecommunication Services : 0.07%

          

Verizon Communications Incorporated (EUR)

     3.25        2-17-2026         300,000         367,661   
          

 

 

 

 

11


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Wireless Telecommunication Services : 0.28%

          

America Movil SAB de CV (MXN)

     7.13     12-9-2024       $ 28,850,000       $ 1,541,456   
          

 

 

 

Total Foreign Corporate Bonds and Notes (Cost $19,870,766)

  

     14,181,865   
          

 

 

 

Foreign Government Bonds @: 24.73%

          

Brazil (BRL)

     10.00        1-1-2017         38,525,000         9,382,501   

Brazil (BRL)

     10.00        1-1-2025         32,800,000         6,092,380   

Colombia (COP)

     7.00        5-4-2022         18,650,000,000         5,277,981   

Colombia (COP)

     7.75        4-14-2021         5,250,000,000         1,602,589   

Hungary (HUF)

     6.75        11-24-2017         1,305,000,000         4,954,739   

Indonesia (IDR)

     7.88        4-15-2019         133,640,000,000         9,598,311   

Indonesia (IDR)

     10.00        7-15-2017         50,000,000,000         3,726,534   

Korea (KRW)

     5.25        3-10-2027         2,830,000,000         3,120,112   

Malaysia (MYR)

     3.66        10-15-2020         20,700,000         5,044,921   

Malaysia (MYR)

     4.18        7-15-2024         19,850,000         4,855,152   

Mexico (MXN)

     4.75        6-14-2018         191,800,000         10,663,203   

Mexico (MXN)

     6.50        6-10-2021         40,000,000         2,313,394   

Mexico (MXN)

     10.00        12-5-2024         62,120,000         4,377,620   

Mexico (MXN)

     10.00        12-5-2024         14,100,000         993,632   

Poland (PLN)

     1.50        4-25-2020         41,200,000         9,827,491   

Poland (PLN)

     3.25        7-25-2025         37,100,000         9,301,525   

Queensland Treasury (AUD)

     5.75        7-22-2024         4,100,000         3,492,301   

Republic of South Africa (ZAR)

     7.75        2-28-2023         103,000,000         6,048,926   

Republic of South Africa (ZAR)

     8.00        12-21-2018         129,000,000         8,026,540   

Romania (RON)

     5.85        4-26-2023         31,550,000         8,757,512   

State of New South Wales Australia (AUD)

     5.00        8-20-2024         3,900,000         3,231,178   

Thailand (THB)

     3.25        6-16-2017         110,000,000         3,155,997   

Thailand (THB)

     3.85        12-12-2025         108,500,000         3,429,775   

Turkey (TRY)

     6.30        2-14-2018         7,325,000         2,286,274   

Turkey (TRY)

     9.00        3-8-2017         13,600,000         4,520,909   

Total Foreign Government Bonds (Cost $169,815,047)

  

     134,081,497   
          

 

 

 

Loans : 15.68%

          

Consumer Discretionary : 3.50%

          

Auto Components : 0.62%

          

Allison Transmission Incorporated ±

     3.50        8-23-2019         3,367,190         3,351,499   
          

 

 

 

Distributors : 0.53%

          

Spin Holdco Incorporated ±

     4.25        11-14-2019         3,010,147         2,855,877   
          

 

 

 

Hotels, Restaurants & Leisure : 0.14%

          

CCM Merger Incorporated ±

     4.50        8-8-2021         648,825         644,770   

TGI Friday’s Incorporated ±

     5.25        7-15-2020         98,050         97,396   
     742,166   
          

 

 

 

Household Durables : 0.02%

          

Tempur-Pedic International Incorporated ±

     3.50        3-18-2020         109,203         108,748   
          

 

 

 

Household Products : 0.03%

          

Anchor Glass Container Corporation ±

     4.50        7-1-2022         163,710         162,926   
          

 

 

 

Leisure Products : 0.36%

          

AMF Bowling Centers Incorporated ±

     7.25        9-18-2021         1,720,638         1,694,829   

Life Time Fitness Incorporated ±

     4.25        6-10-2022         273,999         267,834   
     1,962,663   
          

 

 

 

Media : 1.27%

          

Altice US Finance I Corporation ±%%<

     0.00        12-14-2022         425,000         416,679   

 

12


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Media (continued)

  

Cablevision Systems Corporation ±

     5.00     10-9-2022       $ 700,000       $ 698,033   

Charter Communications Operating LLC ±

     3.50        1-24-2023         445,000         444,279   

Entercom Radio LLC ±

     4.00        11-23-2018         1,051,607         1,046,349   

Learfield Communications Incorporated ±

     4.50        10-9-2020         1,437,373         1,415,813   

Learfield Communications Incorporated ±

     8.75        10-9-2021         2,669,807         2,629,760   

Mission Broadcasting Incorporated ±

     3.75        10-1-2020         125,231         124,527   

Nexstar Broadcasting Incorporated ±

     3.75        10-1-2020         142,014         141,216   
     6,916,656   
          

 

 

 

Multiline Retail : 0.03%

          

Doosan Infracore International Incorporated ±

     4.50        5-28-2021         199,777         190,787   
          

 

 

 

Specialty Retail : 0.50%

          

Focus Brands Incorporated ±

     4.25        2-21-2018         685,453         680,881   

Focus Brands Incorporated ±

     10.25        8-21-2018         2,023,863         2,018,803   
     2,699,684   
          

 

 

 

Consumer Staples : 0.18%

          

Food Products : 0.18%

          

B&G Foods Incorporated ±

     3.75        11-2-2022         750,000         748,125   

Pinnacle Foods Incorporated ±

     3.75        1-13-2023         250,000         250,040   
     998,165   
          

 

 

 

Energy : 0.51%

          

Energy Equipment & Services : 0.51%

          

Hummel Station LLC ±

     7.00        10-27-2022         3,025,000         2,783,000   
          

 

 

 

Financials : 2.23%

          

Capital Markets : 0.25%

          

American Capital Limited ±

     3.50        8-22-2017         1,373,348         1,359,614   
          

 

 

 

Diversified Financial Services : 0.98%

          

American Beacon Advisors Incorporated ±

     5.50        4-30-2022         2,394,539         2,364,607   

American Beacon Advisors Incorporated ±(i)

     9.75        3-3-2023         440,000         431,200   

Ipreo Holdings LLC ±

     4.00        8-6-2021         143,193         136,928   

LPL Holdings Incorporated ±

     3.25        3-29-2019         1,199,800         1,181,803   

TMFS Holdings LLC ±

     5.50        7-30-2021         1,219,563         1,213,465   
     5,328,003   
          

 

 

 

Insurance : 0.10%

          

Asurion LLC ±

     8.50        3-3-2021         360,000         302,915   

Hub International Limited ±

     4.00        10-2-2020         272,747         260,962   
     563,877   
          

 

 

 

Real Estate Management & Development : 0.90%

          

Capital Automotive LP ±

     4.00        4-10-2019         3,047,525         3,039,419   

Capital Automotive LP ±

     6.00        4-30-2020         1,849,333         1,810,035   
     4,849,454   
          

 

 

 

 

13


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Health Care : 0.85%

          

Health Care Equipment & Supplies : 0.16%

          

DJO Finance LLC ±

     4.25     6-8-2020       $ 567,150       $ 545,411   

Prestige Brands Incorporated ±

     3.50        9-3-2021         307,104         306,337   
     851,748   
          

 

 

 

Health Care Providers & Services : 0.50%

          

Acadia Healthcare Company Incorporated ±

     4.25        2-11-2022         158,400         157,212   

Community Health Systems Incorporated ±

     4.00        1-27-2021         947,619         910,899   

Surgery Center Holdings Incorporated ±

     5.25        11-3-2020         1,113,750         1,091,475   

Team Health Incorporated ±

     4.50        11-23-2022         525,000         521,719   
     2,681,305   
          

 

 

 

Health Care Technology : 0.03%

          

Alere Incorporated ±

     4.25        6-18-2022         101,999         100,775   

Hill-Rom Holdings Incorporated ±

     3.50        9-8-2022         70,125         69,920   
     170,695   
          

 

 

 

Pharmaceuticals : 0.16%

          

Endo Finance LLC ±

     3.75        9-26-2022         300,000         296,016   

Valeant Pharmaceuticals International Incorporated ±

     3.75        12-11-2019         172,765         166,123   

Valeant Pharmaceuticals International Incorporated ±

     4.00        4-1-2022         445,500         428,188   
     890,327   
          

 

 

 

Industrials : 2.11%

          

Aerospace & Defense : 0.54%

          

TransDigm Incorporated ±

     3.75        2-28-2020         3,018,953         2,947,253   
          

 

 

 

Airlines : 0.02%

          

LM U.S. Corp Acquisition Incorporated ±

     8.25        1-25-2021         87,203         86,949   
          

 

 

 

Chemicals : 0.05%

          

The Chemours Company ±

     3.75        5-12-2022         278,600         246,096   
          

 

 

 

Commercial Services & Supplies : 0.74%

          

ADS Waste Holdings Incorporated ±

     3.75        10-9-2019         1,016,091         980,019   

Gates Global LLC ±

     4.25        7-5-2021         864,063         776,939   

Owens-lIlinois Incorporated ±

     3.50        9-1-2022         169,575         169,024   

Sedgwick Claims Management Services Incorporated ±

     3.75        3-1-2021         529,610         508,425   

W3 Company ±(i)

     9.25        9-13-2020         289,275         130,174   

WASH Multifamily Laundry Systems LLC ±

     4.25        5-14-2022         1,283,550         1,237,830   

WASH Multifamily Laundry Systems LLC ±

     8.00        5-12-2023         17,885         16,745   

WASH Multifamily Laundry Systems LLC ±(i)

     8.00        5-14-2023         102,115         95,605   

Waste Industries USA Incorporated ±

     4.25        2-27-2020         114,138         113,389   
     4,028,150   
          

 

 

 

Diversified Consumer Services : 0.08%

          

NXP BV ±

     3.75        12-7-2020         450,000         448,875   
          

 

 

 

Electrical Equipment : 0.18%

          

Nusil Technology LLC ±

     5.25        4-7-2017         979,685         961,316   
          

 

 

 

Machinery : 0.10%

          

Onex Wizard Acquisition Company ±

     4.25        3-13-2022         535,950         529,385   
          

 

 

 

 

14


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal     

Value

 

Semiconductors & Semiconductor Equipment : 0.18%

          

Avago Technologies ±%%<

     0.00     2-1-2023       $ 1,000,000       $ 983,280   
          

 

 

 

Transportation Infrastructure : 0.22%

          

HGIM Corporation ±

     5.50        6-18-2020         1,577,070         747,137   

OSG Bulk Ships Incorporated ±

     5.25        8-5-2019         88,650         77,126   

OSG International Incorporated ±

     5.75        8-5-2019         399,420         367,466   
     1,191,729   
          

 

 

 

Information Technology : 3.07%

          

Internet Software & Services : 0.49%

          

Black Knight InfoServ LLC ±

     3.75        5-27-2022         373,125         370,793   

CCC Information Services Incorporated ±

     4.00        12-20-2019         582,972         564,026   

Infor US Incorporated ±

     3.75        6-3-2020         702,323         660,359   

Sophia Holding Finance LP ±

     4.75        9-30-2022         151,455         147,432   

Vertafore Incorporated ±

     9.75        10-29-2017         510,000         507,292   

Zayo Group LLC ±

     3.75        5-6-2021         395,983         389,798   
     2,639,700   
          

 

 

 

Semiconductors & Semiconductor Equipment : 0.45%

          

Avago Technologies ±

     3.75        5-6-2021         2,454,612         2,450,783   
          

 

 

 

Software : 0.18%

          

Emdeon Business Services LLC ±

     3.75        11-2-2018         994,885         981,205   
          

 

 

 

Technology Hardware, Storage & Peripherals : 1.95%

          

CDW LLC ±

     3.25        4-29-2020         875,501         858,866   

Dell Incorporated ±

     4.00        4-29-2020         8,281,792         8,254,628   

Kronos Incorporated ±

     4.50        10-30-2019         577,535         566,227   

Peak 10 Incorporated ±(i)

     8.25        6-17-2022         430,000         391,300   

Riverbed Technology Incorporated ±

     6.00        4-24-2022         496,250         490,876   
     10,561,897   
          

 

 

 

Telecommunication Services : 1.83%

          

Diversified Telecommunication Services : 1.17%

          

Avaya Incorporated ±

     5.12        10-26-2017         199,261         156,059   

Level 3 Financing Incorporated ±

     4.00        1-15-2020         1,700,000         1,695,750   

nTelos Incorporated ±

     5.75        11-9-2019         2,004,136         1,994,115   

Telesat Canada ±

     3.50        3-28-2019         2,557,797         2,506,641   
     6,352,565   
          

 

 

 

Wireless Telecommunication Services : 0.66%

          

LTS Buyer LLC ±

     4.00        4-13-2020         1,857,897         1,818,992   

LTS Buyer LLC ±(i)

     8.00        4-12-2021         566,625         541,835   

Syniverse Holdings Incorporated ±

     4.00        4-23-2019         1,129,493         766,677   

T-Mobile USA Incorporated ±

     3.50        11-9-2022         450,000         450,086   
     3,577,590   
          

 

 

 

Utilities : 1.40%

          

Electric Utilities : 1.31%

          

Green Energy Partners ±

     6.50        11-13-2021         1,330,000         1,216,950   

Texas Competitive Electric Holdings Company LLC ±(s)

     4.66        10-10-2016         20,096,983         5,863,295   
     7,080,245   
          

 

 

 

 

15


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name   Interest rate     Maturity date     Principal     Value  

Independent Power & Renewable Electricity Producers : 0.09%

       

Calpine Corporation ±

    4.00     10-9-2019      $ 494,885      $ 481,206   
       

 

 

 

Total Loans (Cost $101,216,513)

  

    85,015,418   
       

 

 

 

Municipal Obligations : 0.06%

       

New York : 0.06%

       

Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)

    5.00        4-1-2018        345,000        343,227   
       

 

 

 

Total Municipal Obligations (Cost $345,000)

  

    343,227   
       

 

 

 

Non-Agency Mortgage-Backed Securities : 6.19%

       

American General Mortgage Loan Series 2010 Class 1A-A3 ±144A

    5.65        3-25-2058        156,951        157,412   

American Home Mortgage Assets Series 2006-2 Class 1A1 ±

    1.25        9-25-2046        20,143        13,730   

Argent Securities Incorporated Series 2004-W5 Class AV3B ±

    1.32        4-25-2034        73,991        71,484   

Asset-Backed Funding Certificates Series 2003-AHL1 Class A1

    4.18        3-25-2033        221,284        220,809   

Asset-Backed Securities Corporation Home Equity Series 2002-HE3 Class M2 ±

    2.75        10-15-2032        140,999        140,456   

Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±

    6.04        7-10-2044        1,340,000        1,350,559   

Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±

    5.48        1-15-2049        530,000        542,331   

Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±

    6.47        2-10-2051        550,000        591,489   

Banc of America Commercial Mortgage Trust Series 2006-5 Class AM

    5.45        9-10-2047        750,000        761,889   

Banc of America Funding Corporation Series 2005 Class 5-1A1

    5.50        9-25-2035        389,875        405,437   

Banc of America Funding Corporation Series 2009 Class R6-3A1 ±144A

    2.06        1-26-2037        65,300        65,244   

Banc of America Mortgage Securities Series 2003 Class 1A1 ±

    2.50        4-25-2033        351,485        326,902   

Banc of America Mortgage Securities Series 2003 Class A-3A1 ±

    2.80        2-25-2033        80,957        78,238   

Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±

    5.92        6-11-2050        318,000        334,016   

Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±

    6.08        6-11-2050        100,000        106,231   

Centex Home Equity Series 2002-A Class AF6

    5.54        1-25-2032        90,741        90,553   

Centex Home Equity Series 2002-D Class AF6 ±

    4.66        12-25-2032        35,112        35,474   

Centex Home Equity Series 2004-B Class AF6

    4.69        3-25-2034        227,007        231,253   

Citigroup Commercial Mortgage Trust Series 2006 Class C4 ±

    6.03        3-15-2049        680,000        683,453   

Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C ±144A

    5.04        9-10-2045        1,000,000        1,035,087   

Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±

    0.80        12-25-2033        59,241        56,902   

Commercial Mortgage Trust Series 2012-CR2 Class C ±

    5.02        8-15-2045        1,000,000        1,034,696   

Countrywide Asset Backed Certificates Series 2003-5 Class AF5

    5.48        2-25-2034        97,099        97,856   

Countrywide Home Loans Series 2003-48 Class 2A2 ±

    2.81        10-25-2033        119,074        116,734   

Credit Suisse Commercial Mortgage Trust Series 2006-C3 Class AM ±

    6.01        6-15-2038        1,045,000        1,053,402   

Credit Suisse Commercial Mortgage Trust Series 2006-C4 Class AM

    5.51        9-15-2039        1,500,000        1,523,437   

Credit Suisse Commercial Mortgage Trust Series 2006-C5 Class AM

    5.34        12-15-2039        1,000,000        1,018,110   

Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±

    2.24        9-25-2032        586,961        546,938   

Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±

    2.89        6-25-2033        163,502        161,989   

Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±

    2.40        3-25-2033        38,595        37,572   

Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±

    1.08        4-25-2036        132,096        131,702   

Equity One Asset Backed Securities Series 2004-2 Class AF4 ±

    4.62        7-25-2034        423,501        428,015   

First Horizon Mortgage Pass Through Series 2004-AR1 Class 1A1 ±

    2.77        2-25-2034        426,178        420,253   

First Horizon Mortgage Pass Through Series 2004-AR4 Class 3A1 ±

    2.71        8-25-2034        13,603        13,290   

Global Mortgage Securitization Limited Series 2004-A Class A2 ±144A

    0.75        11-25-2032        218,190        205,539   

GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5

    5.48        7-25-2034        75,710        76,761   

Great Wolf Trust Series 2015 Class A ±144A

    1.88        5-15-2034        1,015,000        998,813   

Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4

    5.74        12-10-2049        379,892        395,659   

GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±

    5.99        8-10-2045        880,363        906,852   

 

16


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name   Interest rate     Maturity date     Principal     Value  

Non-Agency Mortgage-Backed Securities (continued)

  

GS Mortgage Securities Trust Series 2010-C1 Class X ±144A(c)

    1.60     8-10-2043      $ 5,468,669      $ 292,762   

GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±(c)

    2.70        5-10-2045        4,705,462        418,196   

GS Mortgage Securities Trust Series 2014-New Class C 144A

    3.79        1-10-2031        1,000,000        965,624   

GSAA Home Equity Trust Series 2004-5 Class AF5 ±

    4.84        6-25-2034        12,411        12,458   

GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±

    0.86        4-25-2035        11,576        11,472   

GSMPS Mortgage Loan Trust Series 2006-1 Class A1 ±144A

    0.73        3-25-2035        135,048        132,497   

GSMPS Mortgage Loan Trust Series 2006-SEA1 Class A ±144A

    0.72        5-25-2036        95,616        94,818   

JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-FL7 Class A 144A±

    1.68        5-15-2028        384,158        378,332   

JPMorgan Chase Commercial Mortgage Trust Series 2007-CB18 Class AM ±

    5.47        6-12-2047        875,000        892,438   

JPMorgan Chase Commercial Mortgage Trust Series 2007-LDPX Class AM ±

    5.46        1-15-2049        550,000        552,782   

JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±

    2.67        7-25-2034        73,059        71,725   

JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±

    2.65        7-25-2034        73,124        70,804   

JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±

    2.80        6-25-2035        272,959        277,271   

JPMorgan Mortgage Trust Series 2009-7 Class 2A1 ±144A

    6.00        2-27-2037        48,323        49,290   

JPMorgan Mortgage Trust Series 2009-7 Class 5A1 ±144A

    6.00        2-27-2037        209,308        214,002   

Lehman XS Trust Series 2006-18N Class A5A ±

    0.60        12-25-2036        18,397        15,023   

MASTR Adjustable Rate Mortgage Trust Series 2003-6
Class 3A1 ±

    2.74        12-25-2033        495,025        488,736   

MASTR Adjustable Rate Mortgage Trust Series 2003-6
Class 4A2 ±

    2.82        1-25-2034        18,630        18,070   

MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±

    2.77        11-21-2034        28,010        28,551   

MASTR Alternative Loans Trust Series 2005-1 Class 5A1

    5.50        1-25-2020        43,975        45,441   

Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM

    5.20        12-12-2049        340,000        347,897   

Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4

    5.70        9-12-2049        801,025        834,637   

Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±

    5.25        8-25-2036        86,684        89,168   

Merrill Lynch Mortgage Trust Series 2006-C1 Class AM ±

    5.91        5-12-2039        565,000        567,025   

Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±

    6.03        6-12-2050        624,033        643,882   

Mesa Trust Asset Backed Certificates Series 2001-5 Class A ±144A

    1.23        12-25-2031        17,850        16,289   

Mid State Trust Series 11 Class A1

    4.86        7-15-2038        239,213        254,208   

MLCC Mortgage Investors Incorporated Series 2003-G
Class A2 ±

    1.31        1-25-2029        116,868        109,457   

Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA ±144A(c)

    1.95        8-15-2045        5,602,251        379,868   

Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±

    1.48        12-27-2033        534,081        513,894   

Morgan Stanley Capital I Trust Series 2006-HQ10 Class AM

    5.36        11-12-2041        500,000        508,397   

Morgan Stanley Capital I Trust Series 2006-HQ9 Class AJ ±

    5.79        7-12-2044        1,000,000        1,009,421   

Morgan Stanley Capital I Trust Series 2006-HQ9 Class AM ±

    5.77        7-12-2044        25,000        25,206   

Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM

    5.37        12-15-2043        500,000        508,425   

Morgan Stanley Capital I Trust Series 2007-HQ13 Class A3

    5.57        12-15-2044        1,227,714        1,281,252   

Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B ±144A

    5.99        8-15-2045        615,000        638,593   

Morgan Stanley Capital I Trust Series 2012-C4 Class C ±144A

    5.71        3-15-2045        900,000        948,767   

New Century Home Equity Loan Trust Series 2004-3 Class M1 ±

    1.36        11-25-2034        1,165,049        1,022,518   

New Century Home Equity Loan Trust Series 2005-1
Class A1MZ ±

    1.01        3-25-2035        62,015        61,916   

Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±

    2.54        5-25-2035        42,751        43,048   

RBSSP Resecuritization Trust Series 2010-3 Class 4A1 ±144A

    3.06        12-26-2035        27,748        27,787   

Renaissance Home Equity Loan Trust Series 2004-4 Class AF4

    4.88        2-25-2035        444,884        447,278   

Residential Funding Mortgage Securities Trust Series 03-S12 Class 2A1

    4.00        12-25-2032        64,728        64,408   

Saxon Asset Securities Trust Series 2002-1 Class AF5

    6.76        12-25-2030        161,885        165,599   

Saxon Asset Securities Trust Series 2003-1 Class AF7

    4.03        6-25-2033        563,897        570,594   

Sequoia Mortgage Trust Series 2003-1 Class 1A ±

    1.19        4-20-2033        20,719        19,784   

Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±

    2.58        3-25-2034        68,192        67,200   

Structured Asset Securities Corporation Series 1998-2 Class A ±

    0.95        2-25-2028        265,819        255,243   

Structured Asset Securities Corporation Series 2002-9 Class A2 ±

    1.02        10-25-2027        77,772        75,816   

Terwin Mortgage Trust Series 2003-6HE Class A3 ±

    1.56        11-25-2033        173,407        162,650   

Vendee Mortgage Trust Series 2003-2 Class IO ±(c)

    0.76        5-15-2033        5,728,151        181,468   

Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A

    7.50        7-25-2034        182,702        195,820   

Total Non-Agency Mortgage-Backed Securities (Cost $33,536,171)

  

    33,534,374   
       

 

 

 

 

17


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name    Dividend yield            Shares      Value  

Preferred Stocks : 0.21%

          

Financials : 0.21%

          

Banks : 0.21%

          

GMAC Capital Trust I ±

     7.86        44,400       $ 1,129,980   
          

 

 

 

Total Preferred Stocks (Cost $1,130,339)

  

     1,129,980   
          

 

 

 
     Interest rate     Maturity date      Principal         

Yankee Corporate Bonds and Notes : 8.82%

          

Consumer Discretionary : 0.61%

          

Diversified Consumer Services : 0.08%

          

Anglo American Capital Company 144A

     4.13        9-27-2022       $ 750,000         438,750   
          

 

 

 

Media : 0.53%

          

Grupo Televisa SAB

     6.00        5-15-2018         750,000         805,425   

Myriad International Holdings BV

     6.00        7-18-2020         500,000         529,740   

Myriad International Holdings BV 144A

     6.38        7-28-2017         750,000         780,000   

WPP Finance 2010

     3.63        9-7-2022         750,000         767,735   
     2,882,900   
          

 

 

 

Consumer Staples : 0.51%

          

Beverages : 0.37%

          

Anadolu Efes

     3.38        11-1-2022         1,400,000         1,168,328   

Pernod Ricard SA 144A

     4.45        1-15-2022         760,000         804,034   
     1,972,362   
          

 

 

 

Tobacco : 0.14%

          

BAT International Finance plc 144A

     3.25        6-7-2022         750,000         772,082   
          

 

 

 

Energy : 1.05%

          

Oil, Gas & Consumable Fuels : 1.05%

          

Baytex Energy Corporation 144A

     5.63        6-1-2024         325,000         188,500   

Griffin Coal Mining Company Limited 144A(i)(s)(a)

     9.50        12-1-2016         1,685,411         674,164   

Griffin Coal Mining Company Limited (i)(s)(a)

     9.50        12-1-2016         137,792         55,117   

Petrobras International Finance Company

     5.38        1-27-2021         670,000         503,338   

Petroleos Mexicanos

     4.88        1-24-2022         750,000         703,125   

Teekay Corporation

     8.50        1-15-2020         3,910,000         2,463,300   

Teekay Corporation 144A

     8.50        1-15-2020         1,000,000         630,000   

Woodside Finance Limited 144A

     8.75        3-1-2019         405,000         466,041   
     5,683,585   
          

 

 

 

Financials : 1.18%

          

Banks : 0.96%

          

Banco del Estado de Chile 144A

     3.88        2-8-2022         650,000         654,716   

Corporación Andina de Fomento

     4.38        6-15-2022         958,000         1,045,178   

Export Import Bank of Korea

     5.00        4-11-2022         750,000         856,073   

Macquarie Bank Limited 144A

     5.00        2-22-2017         750,000         776,468   

Nielsen Holding and Finance BV 144A

     5.50        10-1-2021         415,000         426,413   

Preferred Term Securities XII Limited (i)(s)(a)

     0.00        12-24-2033         635,000         0   

Royal Bank of Scotland plc

     4.38        3-16-2016         750,000         753,105   

Standard Chartered Bank 144A

     6.40        9-26-2017         650,000         691,427   
     5,203,380   
          

 

 

 

 

18


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Diversified Financial Services : 0.22%

          

GE Capital International Funding Company 144A

     2.34     11-15-2020       $ 527,000       $ 529,044   

Tyco Electronics Group SA

     3.50        2-3-2022         625,000         645,249   
     1,174,293   
          

 

 

 

Health Care : 1.25%

          

Pharmaceuticals : 1.25%

          

Mallinckrodt plc 144A

     5.50        4-15-2025         500,000         445,000   

Mallinckrodt plc 144A

     5.63        10-15-2023         275,000         257,813   

Perrigo Finance plc

     3.90        12-15-2024         1,000,000         981,718   

Valeant Pharmaceuticals International Incorporated 144A

     5.63        12-1-2021         85,000         78,413   

Valeant Pharmaceuticals International Incorporated 144A

     5.88        5-15-2023         985,000         881,575   

Valeant Pharmaceuticals International Incorporated 144A

     6.13        4-15-2025         395,000         355,006   

Valeant Pharmaceuticals International Incorporated 144A

     6.75        8-15-2018         680,000         674,900   

Valeant Pharmaceuticals International Incorporated 144A

     7.50        7-15-2021         3,130,000         3,098,700   
     6,773,125   
          

 

 

 

Industrials : 0.52%

          

Building Products : 0.04%

          

Allegion plc

     5.88        9-15-2023         210,000         216,825   
          

 

 

 

Commercial Services & Supplies : 0.29%

          

GFL Environmental Incorporated 144A

     7.88        4-1-2020         1,575,000         1,567,125   
          

 

 

 

Machinery : 0.04%

          

Sensata Technologies BV 144A

     5.00        10-1-2025         235,000         226,188   
          

 

 

 

Road & Rail : 0.15%

          

Canadian Pacific Railway Company

     4.50        1-15-2022         750,000         811,547   
          

 

 

 

Information Technology : 0.28%

          

Communications Equipment : 0.14%

          

Ericsson LM

     4.13        5-15-2022         750,000         782,005   
          

 

 

 

Internet Software & Services : 0.14%

          

Tencent Holdings Limited 144A

     4.63        12-12-2016         750,000         768,825   
          

 

 

 

Materials : 1.05%

          

Containers & Packaging : 0.42%

          

Ardagh Finance Holdings SA (PIK at 8.63%) 144A¥

     8.63        6-15-2019         1,341,968         1,234,611   

Ardagh Packaging Finance plc 144A

     9.13        10-15-2020         1,020,000         1,022,550   
     2,257,161   
          

 

 

 

Metals & Mining : 0.37%

          

ArcelorMittal SA

     5.50        2-25-2017         725,000         708,688   

ArcelorMittal SA

     6.13        6-1-2025         100,000         72,500   

ArcelorMittal SA

     7.25        2-25-2022         355,000         288,438   

Novelis Incorporated

     8.38        12-15-2017         125,000         120,000   

Novelis Incorporated

     8.75        12-15-2020         350,000         318,115   

Vale Overseas Limited

     4.38        1-11-2022         750,000         521,250   
     2,028,991   
          

 

 

 

Paper & Forest Products : 0.26%

          

Sappi Limited 144A(i)

     7.50        6-15-2032         1,560,000         1,404,000   
          

 

 

 

 

19


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Multi-Sector Income Fund

 

Security name          Interest rate     Maturity date      Principal      Value  

Telecommunication Services : 2.25%

            

Diversified Telecommunication Services : 1.98%

            

Intelsat Jackson Holdings SA

       5.50     8-1-2023       $ 6,775,000       $ 5,403,063   

Intelsat Jackson Holdings SA

       7.25        10-15-2020         650,000         559,000   

Intelsat Jackson Holdings SA

       7.50        4-1-2021         1,025,000         884,063   

Intelsat Luxembourg SA

       7.75        6-1-2021         1,435,000         624,225   

Intelsat Luxembourg SA

       8.13        6-1-2023         5,815,000         2,398,658   

Qtel International Finance Limited

       5.00        10-19-2025         300,000         312,750   

Virgin Media Finance plc 144A

       5.38        4-15-2021         162,000         165,645   

Virgin Media Finance plc 144A

       6.38        4-15-2023         365,000         374,125   
     10,721,529   
            

 

 

 

Wireless Telecommunication Services : 0.27%

            

Globo Communicacoes Participacoes SA 144A

       4.88        4-11-2022         750,000         705,000   

Telesat Canada Incorporated 144A

       6.00        5-15-2017         775,000         780,813   
     1,485,813   
            

 

 

 

Utilities : 0.12%

            

Electric Utilities : 0.12%

            

Comision Federal de Electricidad 144A

       4.88        5-26-2021         650,000         661,375   
            

 

 

 

Total Yankee Corporate Bonds and Notes (Cost $57,180,069)

  

     47,831,861   
            

 

 

 
           Yield            Shares         

Short-Term Investments : 3.82%

            

Investment Companies : 3.82%

            

Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)##

       0.40           20,708,853         20,708,853   
            

 

 

 

Total Short-Term Investments (Cost $20,708,853)

  

     20,708,853   
            

 

 

 

Total investments in securities
(Cost $850,095,149)*

     137.23             743,983,542   

Other assets and liabilities, net

     (37.23             (201,831,745
  

 

 

           

 

 

 

Total net assets

     100.00           $ 542,151,797   
  

 

 

           

 

 

 

 

± Variable rate investment. The rate shown is the rate in effect at period end.
144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.
(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.
Non-income-earning security
(i) Illiquid security
¥ 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.
(s) The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.
(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.
@ Foreign bond principal is denominated in the local currency of the issuer.
%% The security is issued on a when-issued basis.
< All or a portion of the position represents an unfunded loan commitment.
(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.
(u) The rate represents the 7-day annualized yield at period end.
## All or a portion of this security is segregated for when-issued securities and/or unfunded loans.

 

20


Wells Fargo Multi-Sector Income Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

* Cost for federal income tax purposes is $855,342,941 and unrealized gains (losses) consists of:

 

Gross unrealized gains

   $ 7,290,109   

Gross unrealized losses

     (118,649,508
  

 

 

 

Net unrealized losses

   $ (111,359,399

Abbreviations:

 

ADS    American depositary shares
AUD    Australian dollar
BRL    Brazilian real
COP    Columbian Peso
EUR    Euro
FHLMC    Federal Home Loan Mortgage Corporation
FNMA    Federal National Mortgage Association
GBP    Great British pound
GNMA    Government National Mortgage Association
HUF    Hungarian forint
IDR    Indonesian rupiah
KRW    Republic of Korea won
LLC    Limited liability company
LP    Limited partnership
MXN    Mexican peso
MYR    Malaysian ringgit
plc    Public limited company
PLN    Polish zloty
REIT    Real estate investment trust
RON    Romanian lei
THB    Thai baht
TRY    Turkish lira
ZAR    South African rand

 

21


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

Notes to Portfolio of investments – January 31, 2016 (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).

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

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

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

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

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

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

Foreign currency translation

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

Forward foreign currency contracts

The Fund is 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 forward foreign currency contract 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 on the contracts. This risk may be mitigated if there is 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.


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, 2016, the Fund had unfunded loan commitments of $1,411,438.

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.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2016:

 

     Quoted prices
(Level 1)
     Other significant
observable inputs

(Level 2)
     Significant
unobservable inputs
(Level 3)
     Total  

Assets

           

Investments in :

           

Agency securities

   $ 0       $ 14,632,699       $ 0       $ 14,632,699   

Asset-backed securities

     0         612,955         0         612,955   

Common stocks

           

Materials

     702         0         0         702   

Telecommunication services

     433,545         0         0         433,545   

Corporate bonds and notes

     0         391,476,566         0         391,476,566   

Foreign corporate bonds and notes

     0         14,181,865         0         14,181,865   

Foreign government bonds

     0         134,081,497         0         134,081,497   

Loans

     0         66,808,660         18,206,758         85,015,418   

Municipal obligations

     0         343,227         0         343,227   

Non-agency mortgage-backed securities

     0         33,534,374         0         33,534,374   

Preferred stocks

           

Financials

     1,129,980         0         0         1,129,980   

Yankee corporate bonds and notes

     0         47,102,580         729,281         47,831,861   

Short-term investments

           

Investment companies

     20,708,853         0         0         20,708,853   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 22,273,080       $ 702,774,423       $ 18,936,039       $ 743,983,542   
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities

           

Forward foreign currency contracts

   $ 0       $ 21,667       $ 0       $ 21,667   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 0       $ 21,667       $ 0       $ 21,667   
  

 

 

    

 

 

    

 

 

    

 

 

 


Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At January 31, 2016, the Fund did not have any transfers into/out of Level 1.

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

 

     Loans      Yankee corporate
bonds and notes
     Total  

Balance as of October 31, 2015

   $ 16,654,991       $ 729,281       $ 17,384,272   

Accrued discounts (premiums)

     11,183         46,764         57,947   

Realized gains (losses)

     (936      0         (936

Change in unrealized gains (losses)

     (314,307      (46,764      (361,071

Purchases

     0         0         0   

Sales

     (147,158      0         (147,158

Transfers into Level 3

     3,240,815         0         3,240,815   

Transfers out of Level 3

     (1,237,830      0         (1,237,830
  

 

 

    

 

 

    

 

 

 

Balance as of January 31, 2016

   $ 18,206,758       $ 729,281       $ 18,936,039   
  

 

 

    

 

 

    

 

 

 

Change in unrealized gains (losses) relating to securities still held at January 31, 2016

   $ (302,042    $ (46,764    $ (348,806
  

 

 

    

 

 

    

 

 

 

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

Derivative transactions

During the three months ended January 31, 2016, the Fund entered into forward foreign currency exchange contracts for economic hedging purposes. At January 31, 2016, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to sell:

 

Exchange date

   Counterparty    Contracts to deliver    U.S. value at
January 31,
2016
     In exchange
for U.S. $
     Unrealized
losses
 

2-9-2016

   State Street Bank    1,437,000,000 HUF    $ 5,000,122       $ 4,979,037       $ (21,085

3-11-2016

   State Street Bank    3,000,000 TRY      1,003,902         1,003,320         (582


The following is a list of common abbreviations for terms and entities that may have appeared in this report.

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 — Colombian peso

CLP — Chilean peso

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 — Indonesian rupiah

IEP — Irish pound

JPY — Japanese yen

KRW — Republic of Korea won

LIBOR — London Interbank Offered Rate

LIFER — Long Inverse Floating Exempt Receipts

LIQ — Liquidity agreement

LLC — Limited liability company

LLLP — Limited liability limited partnership

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

NGN — Nigerian naira

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

RON — Romanian lei

RUB — Russian ruble

SAVRS — Select auction variable rate securities

SBA — Small Business Authority

SDR — Swedish depositary receipt

SEK — Swedish krona

SFHR — Single-family housing revenue

SFMR — Single-family mortgage revenue

SGD — Singapore dollar

SPA — Standby purchase agreement

SPDR — Standard & Poor’s Depositary Receipts

SPEAR — Short Puttable Exempt Adjustable Receipts

STRIPS — Separate trading of registered interest and

principal securities

TAN — Tax anticipation notes

TBA — To be announced

THB — Thai baht

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 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/ Karla M. Rabusch
  Karla M. Rabusch
  President
Date: March 24, 2016

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/ Karla M. Rabusch
 

Karla M. Rabusch

 

President

Date: March 24, 2016

By:

 

/s/ Jeremy DePalma

 

Jeremy DePalma

 

Treasurer

Date: March 24, 2016