N-Q 1 d162551dnq.htm FORM N-Q Form N-Q

LOGO

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21507

 

 

Wells Fargo Income Opportunities 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: April 30

Registrant is making a filing for Wells Fargo Income Opportunities Fund.

Date of reporting period: January 31, 2016

 

 

 


ITEM 1.  INVESTMENTS


Wells Fargo Income Opportunities Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name                  Shares      Value  

Common Stocks : 0.15%

           

Materials : 0.00%

           

Chemicals : 0.00%

           

LyondellBasell Industries NV Class A

           7       $ 546   
           

 

 

 

Telecommunication Services : 0.15%

           

Diversified Telecommunication Services : 0.15%

           

Fairpoint Communications Incorporated †

           55,687         835,305   
           

 

 

 

Total Common Stocks (Cost $1,274,443)

              835,851   
           

 

 

 
     Interest rate      Maturity date      Principal         

Corporate Bonds and Notes : 116.92%

           

Consumer Discretionary : 21.95%

           

Auto Components : 0.94%

           

Cooper Tire & Rubber Company (i)

     7.63         3-15-2027       $ 4,000,000         4,160,000   

Cooper Tire & Rubber Company

     8.00         12-15-2019         400,000         444,000   

Goodyear Tire & Rubber Company

     7.00         5-15-2022         700,000         748,650   
              5,352,650   
           

 

 

 

Distributors : 0.22%

           

LKQ Corporation

     4.75         5-15-2023         1,355,000         1,277,088   
           

 

 

 

Diversified Consumer Services : 2.14%

           

Monitronics International

     9.13         4-1-2020         575,000         461,438   

Service Corporation International

     7.00         6-15-2017         1,250,000         1,321,875   

Service Corporation International

     7.50         4-1-2027         7,078,000         8,122,005   

Service Corporation International

     7.63         10-1-2018         1,100,000         1,231,318   

Service Corporation International

     8.00         11-15-2021         885,000         1,039,875   
                  12,176,511   
           

 

 

 

Hotels, Restaurants & Leisure : 5.55%

           

CCM Merger Incorporated 144A

     9.13         5-1-2019             10,830,000         11,154,900   

Greektown Holdings LLC 144A

     8.88         3-15-2019         12,975,000         12,780,375   

Hilton Worldwide Finance LLC

     5.63         10-15-2021         320,000         329,600   

Pinnacle Entertainment Incorporated

     7.50         4-15-2021         6,297,000         6,548,880   

Speedway Motorsports Incorporated

     5.13         2-1-2023         825,000         822,938   
              31,636,693   
           

 

 

 

Household Durables : 0.69%

           

American Greetings Corporation

     7.38         12-1-2021         3,375,000         3,434,063   

Tempur Sealy International Incorporated 144A

     5.63         10-15-2023         175,000         178,500   

Tempur Sealy International Incorporated

     6.88         12-15-2020         325,000         343,688   
              3,956,251   
           

 

 

 

Leisure Products : 0.18%

           

Vista Outdoor Incorporated 144A

     5.88         10-1-2023         1,025,000         1,042,938   
           

 

 

 

Media : 10.50%

           

Altice US Finance I Corporation 144A

     5.38         7-15-2023         2,270,000         2,281,350   

Cable One Incorporated 144A

     5.75         6-15-2022         625,000         631,250   

Cablevision Systems Corporation

     8.63         9-15-2017         2,975,000         3,094,000   

CCO Holdings LLC

     5.13         2-15-2023         1,425,000         1,421,438   

CCO Holdings LLC 144A

     5.13         5-1-2023         795,000         792,913   

CCO Holdings LLC

     5.25         9-30-2022         2,048,000         2,073,600   

CCO Holdings LLC 144A

     5.38         5-1-2025         7,195,000         7,123,050   

CCO Holdings LLC 144A

     5.88         5-1-2027         1,145,000         1,127,825   

CCO Holdings LLC

     6.63         1-31-2022         1,228,000         1,300,145   

 

1


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Income Opportunities Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Media (continued)

          

CCO Holdings LLC

     7.38     6-1-2020       $ 2,364,000       $ 2,458,560   

CCOH Safari LLC 144A

     5.75        2-15-2026         5,125,000         5,098,734   

Cequel Communications Holdings I LLC 144A

     5.13        12-15-2021         1,941,000         1,755,440   

Cequel Communications Holdings I LLC 144A

     7.75        7-15-2025         3,625,000         3,316,875   

Cinemark USA Incorporated

     7.38        6-15-2021         1,525,000         1,589,813   

CSC Holdings LLC

     7.88        2-15-2018         1,525,000         1,605,063   

CSC Holdings LLC

     8.63        2-15-2019         635,000         676,275   

EchoStar DBS Corporation

     7.13        2-1-2016         1,160,000         1,160,000   

Gray Television Incorporated

     7.50        10-1-2020         8,125,000         8,378,906   

Lamar Media Corporation

     5.88        2-1-2022         1,785,000         1,854,169   

LIN Television Corporation

     6.38        1-15-2021         500,000         522,500   

Live Nation Entertainment Incorporated 144A

     7.00        9-1-2020         810,000         850,500   

National CineMedia LLC

     6.00        4-15-2022         3,340,000         3,419,325   

National CineMedia LLC

     7.88        7-15-2021         1,750,000         1,806,875   

Nexstar Broadcasting Group Incorporated 144A

     6.13        2-15-2022         300,000         285,000   

Nexstar Broadcasting Group Incorporated

     6.88        11-15-2020         3,510,000         3,518,775   

Outfront Media Capital Corporation

     5.25        2-15-2022         320,000         327,200   

Outfront Media Capital Corporation

     5.63        2-15-2024         35,000         35,788   

Outfront Media Capital Corporation

     5.88        3-15-2025         1,275,000         1,295,719   
                 59,801,088   
          

 

 

 

Specialty Retail : 1.57%

          

ABC Supply Company Incorporated 144A

     5.63        4-15-2021         730,000         744,600   

ABC Supply Company Incorporated 144A

     5.75        12-15-2023         475,000         484,500   

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

     9.75        2-15-2019         465,000         474,300   

Penske Auto Group Incorporated

     5.38        12-1-2024         1,860,000         1,804,200   

Penske Auto Group Incorporated

     5.75        10-1-2022         2,100,000         2,084,250   

Sonic Automotive Incorporated

     5.00        5-15-2023         1,900,000         1,790,750   

Sonic Automotive Incorporated

     7.00        7-15-2022         1,495,000         1,551,063   
             8,933,663   
          

 

 

 

Textiles, Apparel & Luxury Goods : 0.16%

          

Wolverine World Wide Company

     6.13        10-15-2020         875,000         905,625   
          

 

 

 

Consumer Staples : 1.56%

          

Beverages : 0.38%

          

Cott Beverages Incorporated

     5.38        7-1-2022         850,000         824,500   

Cott Beverages Incorporated

     6.75        1-1-2020         1,295,000         1,333,850   
             2,158,350   
          

 

 

 

Food Products : 1.08%

          

B&G Foods Incorporated

     4.63        6-1-2021         670,000         668,325   

Darling Ingredients Incorporated

     5.38        1-15-2022         295,000         289,100   

Pilgrim’s Pride Corporation 144A

     5.75        3-15-2025         1,860,000         1,790,250   

Pinnacle Foods Incorporated 144A

     5.88        1-15-2024         100,000         103,500   

Simmons Foods Incorporated 144A

     7.88        10-1-2021             3,625,000         3,208,125   

Treehouse Foods Incorporated 144A

     6.00        2-15-2024         100,000         102,875   
             6,162,175   
          

 

 

 

Household Products : 0.10%

          

Central Garden & Pet Company

     6.13        11-15-2023         405,000         414,113   

Spectrum Brands Incorporated 144A

     5.75        7-15-2025         150,000         153,750   
             567,863   
          

 

 

 

Energy : 22.53%

          

Energy Equipment & Services : 8.74%

          

Bristow Group Incorporated

     6.25        10-15-2022         8,040,000         5,527,500   

Cleaver Brooks Incorporated 144A

     8.75        12-15-2019         810,000         761,400   

Era Group Incorporated

     7.75        12-15-2022         7,340,000         5,578,400   

Forum Energy Technologies Incorporated

     6.25        10-1-2021         1,590,000         1,272,000   

 

2


Wells Fargo Income Opportunities Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Energy Equipment & Services (continued)

          

Gulfmark Offshore Incorporated

     6.38     3-15-2022       $ 7,033,000       $ 2,180,230   

Hilcorp Energy Company 144A

     5.00        12-1-2024         1,360,000         1,050,600   

Hilcorp Energy Company 144A

     5.75        10-1-2025         2,125,000         1,662,813   

Hornbeck Offshore Services Company

     1.50        9-1-2019         2,100,000         1,103,813   

Hornbeck Offshore Services Incorporated

     5.00        3-1-2021         4,705,000         2,658,325   

Hornbeck Offshore Services Incorporated

     5.88        4-1-2020         4,562,000         2,737,200   

NGPL PipeCo LLC 144A

     7.12        12-15-2017         3,990,000         3,750,600   

NGPL PipeCo LLC 144A

     7.77        12-15-2037             17,845,000         13,428,363   

NGPL PipeCo LLC 144A

     9.63        6-1-2019         715,000         672,100   

PHI Incorporated

     5.25        3-15-2019         9,000,000         7,267,500   

Pride International Incorporated

     8.50        6-15-2019         210,000         168,000   
                 49,818,844   
          

 

 

 

Oil, Gas & Consumable Fuels : 13.79%

          

Alpha Natural Resources Incorporated (s)

     6.25        6-1-2021         800,000         2,000   

Arch Coal Incorporated (s)

     7.00        6-15-2019         1,950,000         12,188   

Arch Coal Incorporated (s)

     7.25        6-15-2021         775,000         6,297   

Berry Petroleum Company LLC

     6.38        9-15-2022         5,200,000         1,040,000   

Berry Petroleum Company LLC

     6.75        11-1-2020         550,000         121,000   

Continental Resources Company

     5.00        9-15-2022         1,250,000         875,000   

CSI Compressco LP

     7.25        8-15-2022         2,575,000         1,673,750   

Denbury Resources Incorporated

     4.63        7-15-2023         6,300,000         2,079,000   

Denbury Resources Incorporated

     5.50        5-1-2022         580,000         203,000   

Denbury Resources Incorporated

     6.38        8-15-2021         2,605,000         937,800   

El Paso Pipeline Partners Operating LLC

     5.00        10-1-2021         2,850,000         2,693,236   

Exterran Partners LP

     6.00        4-1-2021         3,550,000         2,644,750   

Kinder Morgan Energy Partners LP

     5.55        6-1-2045         1,525,000         1,195,057   

Kinder Morgan Incorporated

     6.50        9-15-2020         1,155,000         1,156,229   

Kinder Morgan Incorporated

     7.00        6-15-2017         1,998,000         2,058,052   

Kinder Morgan Incorporated (i)

     7.42        2-15-2037         1,820,000         1,586,341   

Kinder Morgan Incorporated

     7.80        8-1-2031         3,050,000         2,926,097   

Northern Tier Energy LLC

     7.13        11-15-2020         4,300,000         4,091,020   

Overseas Shipholding Group Incorporated

     8.13        3-30-2018         2,126,000         2,115,370   

Pioneer Natural Resources Company

     7.50        1-15-2020         3,170,000         3,349,986   

Rockies Express Pipeline LLC 144A

     5.63        4-15-2020         6,255,000         5,598,225   

Rockies Express Pipeline LLC 144A

     6.88        4-15-2040         6,960,000         5,289,600   

Rockies Express Pipeline LLC 144A(i)

     7.50        7-15-2038         4,425,000         3,540,000   

Sabine Oil & Gas Corporation (i)(s)

     7.25        6-15-2019         850,000         55,250   

Sabine Oil & Gas Corporation (i)(s)

     7.50        9-15-2020         5,733,000         372,645   

Sabine Pass Liquefaction LLC

     5.63        2-1-2021         1,425,000         1,303,875   

Sabine Pass Liquefaction LLC

     5.63        4-15-2023         2,820,000         2,474,550   

Sabine Pass Liquefaction LLC

     5.63        3-1-2025         740,000         636,400   

Sabine Pass Liquefaction LLC

     5.75        5-15-2024         525,000         460,688   

Sabine Pass Liquefaction LLC

     6.25        3-15-2022         3,415,000         3,146,069   

Sabine Pass LNG LP

     6.50        11-1-2020         9,370,000         9,686,238   

Sabine Pass LNG LP

     7.50        11-30-2016         7,325,000         7,590,531   

SemGroup Corporation

     7.50        6-15-2021         4,620,000         3,557,400   

Southern Star Central Corporation 144A

     5.13        7-15-2022         80,000         69,000   

Suburban Propane Partners LP

     5.50        6-1-2024         480,000         399,600   

Suburban Propane Partners LP

     7.38        8-1-2021         716,000         701,680   

Swift Energy Company (i)(s)

     7.13        6-1-2017         9,300,000         697,500   

Swift Energy Company (i)(s)

     8.88        1-15-2020         1,750,000         131,250   

Ultra Petroleum Corporation 144A

     5.75        12-15-2018         650,000         91,781   

Ultra Petroleum Corporation 144A

     6.13        10-1-2024         14,075,000         1,970,500   
             78,538,955   
          

 

 

 

Financials : 22.73%

          

Banks : 1.15%

          

CIT Group Incorporated

     5.25        3-15-2018         160,000         165,299   

CIT Group Incorporated 144A

     5.50        2-15-2019         2,225,000         2,297,313   

CIT Group Incorporated 144A

     6.63        4-1-2018         3,880,000         4,103,100   
             6,565,712   
          

 

 

 

 

3


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Income Opportunities Fund

 

 

Security name    Interest rate     Maturity date      Principal      Value  

Capital Markets : 1.61%

          

Jefferies Finance LLC 144A

     6.88     4-15-2022       $ 6,910,000       $ 5,441,625   

Jefferies Finance LLC 144A

     7.38        4-1-2020         515,000         430,025   

Jefferies Finance LLC 144A

     7.50        4-15-2021         2,625,000         2,141,016   

Neuberger Berman Group LLC 144A

     5.88        3-15-2022         1,125,000         1,172,813   
             9,185,479   
          

 

 

 

Consumer Finance : 6.65%

          

Ally Financial Incorporated

     5.75        11-20-2025         1,100,000         1,097,250   

Ally Financial Incorporated

     7.50        9-15-2020         200,000         222,500   

Ally Financial Incorporated

     8.00        12-31-2018         1,900,000         2,073,375   

Ally Financial Incorporated

     8.00        3-15-2020         3,016,000         3,377,920   

Ford Motor Credit Company LLC

     8.00        12-15-2016         200,000         210,434   

Homer City Generation LLC (PIK at 9.23%) ¥

     8.73        10-1-2026         2,891,288         2,255,204   

Navient Corporation

     5.88        3-25-2021         1,000,000         865,000   

Navient Corporation

     8.00        3-25-2020         5,450,000         5,368,250   

SLM Corporation

     6.13        3-25-2024         2,975,000         2,443,219   

SLM Corporation

     7.25        1-25-2022         1,600,000         1,424,000   

SLM Corporation

     8.45        6-15-2018         3,110,000         3,218,850   

Springleaf Finance Corporation

     5.75        9-15-2016         2,325,000         2,342,438   

Springleaf Finance Corporation

     6.00        6-1-2020         2,850,000         2,600,625   

Springleaf Finance Corporation

     6.50        9-15-2017         550,000         554,125   

Springleaf Finance Corporation

     6.90        12-15-2017         6,950,000         7,105,680   

Springleaf Finance Corporation

     7.75        10-1-2021         992,000         932,480   

Springleaf Finance Corporation

     8.25        10-1-2023             1,892,000         1,783,210   
                 37,874,560   
          

 

 

 

Diversified Financial Services : 2.59%

          

Denali Borrower LLC 144A

     5.63        10-15-2020         6,930,000         7,293,825   

Infinity Acquisition LLC 144A(i)

     7.25        8-1-2022         4,310,000         3,663,500   

NewStar Financial Incorporated

     7.25        5-1-2020         4,075,000         3,789,750   
             14,747,075   
          

 

 

 

Insurance : 1.28%

          

Hub Holdings LLC (PIK at 8.88%) 144A¥

     8.13        7-15-2019         5,070,000         4,258,800   

Hub International Limited 144A

     7.88        10-1-2021         3,480,000         3,053,700   
             7,312,500   
          

 

 

 

Real Estate Management & Development : 0.84%

          

Onex Corporation 144A

     7.75        1-15-2021         5,295,000         4,752,263   
          

 

 

 

REITs : 8.61%

          

Crown Castle International Corporation

     4.88        4-15-2022         760,000         797,050   

Crown Castle International Corporation

     5.25        1-15-2023         4,385,000         4,670,025   

DuPont Fabros Technology Incorporated LP

     5.63        6-15-2023         4,875,000         4,899,375   

DuPont Fabros Technology Incorporated LP

     5.88        9-15-2021         7,670,000         7,900,100   

Equinix Incorporated

     5.88        1-15-2026         700,000         724,500   

ESH Hospitality Incorporated 144A

     5.25        5-1-2025         4,650,000         4,478,508   

Iron Mountain Incorporated

     5.75        8-15-2024         8,220,000         8,117,250   

Iron Mountain Incorporated 144A

     6.00        10-1-2020         600,000         639,000   

Iron Mountain Incorporated

     6.00        8-15-2023         5,185,000         5,392,400   

Sabra Health Care Incorporated

     5.38        6-1-2023         1,425,000         1,428,563   

Sabra Health Care Incorporated

     5.50        2-1-2021         1,960,000         1,999,200   

The Geo Group Incorporated

     5.13        4-1-2023         825,000         783,750   

The Geo Group Incorporated

     5.88        1-15-2022         4,350,000         4,311,938   

The Geo Group Incorporated

     5.88        10-15-2024         850,000         818,125   

The Geo Group Incorporated

     6.63        2-15-2021         2,030,000         2,073,138   
             49,032,922   
          

 

 

 

 

4


Wells Fargo Income Opportunities Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Health Care : 11.31%

          

Health Care Equipment & Supplies : 1.06%

          

Crimson Merger Sub Incorporated 144A

     6.63        5-15-2022       $ 6,225,000       $ 4,170,750   

Hill-Rom Holdings Incorporated 144A

     5.75     9-1-2023         325,000         331,094   

Hologic Incorporated 144A

     5.25        7-15-2022         1,500,000         1,552,500   
             6,054,344   
          

 

 

 

Health Care Providers & Services : 7.34%

          

Acadia Healthcare Company Incorporated

     5.63        2-15-2023         465,000         439,367   

Centene Corporation

     5.75        6-1-2017         1,925,000         1,992,375   

DaVita HealthCare Partners Incorporated

     5.00        5-1-2025         2,215,000         2,179,006   

DaVita HealthCare Partners Incorporated

     5.75        8-15-2022         2,925,000         3,045,656   

Fresenius Medical Care Holdings Incorporated 144A

     5.63        7-31-2019         1,000,000         1,082,500   

Fresenius Medical Care Holdings Incorporated

     6.88        7-15-2017         700,000         745,500   

HCA Incorporated

     5.88        3-15-2022         750,000         804,375   

HCA Incorporated

     6.50        2-15-2020         6,525,000         7,193,813   

HealthSouth Corporation 144A

     5.75        11-1-2024         825,000         814,349   

HealthSouth Corporation

     5.75        11-1-2024         125,000         123,386   

HealthSouth Corporation 144A

     5.75        9-15-2025         1,975,000         1,915,355   

HealthSouth Corporation

     7.75        9-15-2022         1,363,000         1,414,113   

Mednax Incorporated 144A

     5.25        12-1-2023         775,000         794,375   

Molina Healthcare Incorporated 144A

     5.38        11-15-2022         775,000         775,000   

MPT Operating Partnership LP

     6.38        2-15-2022         1,780,000         1,806,700   

MPT Operating Partnership LP

     6.88        5-1-2021         3,175,000         3,286,125   

Select Medical Corporation

     6.38        6-1-2021             10,230,000         8,695,500   

Team Health Incorporated 144A

     7.25        12-15-2023         1,875,000         1,959,375   

Tenet Healthcare Corporation

     6.00        10-1-2020         2,600,000         2,756,000   
                 41,822,870   
          

 

 

 

Health Care Technology : 1.34%

          

Emdeon Incorporated

     11.00        12-31-2019         7,315,000         7,607,600   
          

 

 

 

Pharmaceuticals : 1.57%

          

Endo Finance LLC 144A

     5.75        1-15-2022         1,180,000         1,174,100   

Endo Finance LLC 144A

     5.88        1-15-2023         1,275,000         1,265,438   

Endo Finance LLC 144A

     6.00        2-1-2025         1,275,000         1,259,216   

Endo Finance LLC 144A

     7.75        1-15-2022         3,925,000         4,096,719   

PRA Holdings Incorporated 144A

     9.50        10-1-2023         975,000         1,067,625   

Valeant Pharmaceuticals International Incorporated 144A

     7.25        7-15-2022         100,000         98,000   
             8,961,098   
          

 

 

 

Industrials : 8.04%

          

Airlines : 0.43%

          

Aviation Capital Group Corporation 144A

     6.75        4-6-2021         2,190,000         2,447,325   
          

 

 

 

Commercial Services & Supplies : 3.29%

          

ADT Corporation

     4.13        6-15-2023         1,775,000         1,633,000   

ADT Corporation

     6.25        10-15-2021         6,390,000         6,629,625   

Aramark Services Incorporated 144A

     5.13        1-15-2024         200,000         206,500   

Berry Plastics Corporation 144A

     6.00        10-15-2022         350,000         357,000   

Covanta Holding Corporation

     5.88        3-1-2024         5,393,000         4,705,393   

Covanta Holding Corporation

     6.38        10-1-2022         3,205,000         3,020,713   

Covanta Holding Corporation

     7.25        12-1-2020         2,150,000         2,175,531   
             18,727,762   
          

 

 

 

Construction & Engineering : 1.36%

          

AECOM

     5.75        10-15-2022         355,000         358,994   

AECOM

     5.88        10-15-2024         4,280,000         4,263,950   

United Rentals North America Incorporated

     4.63        7-15-2023         1,965,000         1,913,419   

United Rentals North America Incorporated

     5.50        7-15-2025         1,385,000         1,237,844   
             7,774,207   
          

 

 

 

 

5


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Income Opportunities Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Machinery : 0.13%

          

Enpro Industries Incorporated

     5.88     9-15-2022       $ 745,000       $ 724,513   
          

 

 

 

Professional Services : 0.06%

          

Ascent Capital Group Incorporated

     4.00        7-15-2020         600,000         342,750   
          

 

 

 

Trading Companies & Distributors : 2.77%

          

Ashtead Capital Incorporated 144A

     6.50        7-15-2022         6,975,000         7,114,500   

H&E Equipment Services Incorporated

     7.00        9-1-2022         8,320,000         7,592,000   

International Lease Finance Corporation 144A

     7.13        9-1-2018         1,015,000         1,098,738   
             15,805,238   
          

 

 

 

Information Technology : 8.46%

          

Communications Equipment : 0.31%

          

CommScope Technologies Finance LLC 144A

     6.00        6-15-2025         1,800,000         1,750,500   
          

 

 

 

Electronic Equipment, Instruments & Components : 3.12%

          

Jabil Circuit Incorporated

     8.25        3-15-2018         13,532,000         14,716,050   

Zebra Technologies Corporation

     7.25        10-15-2022         2,910,000         3,026,400   
             17,742,450   
          

 

 

 

Internet Software & Services : 0.29%

          

Infor Software Parent LLC 144A

     6.50        5-15-2022         875,000         763,438   

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

     7.13        5-1-2021         1,260,000         897,750   
             1,661,188   
          

 

 

 

IT Services : 1.75%

          

Audatex North America Incorporated 144A

     6.00        6-15-2021         4,470,000         4,503,525   

Audatex North America Incorporated 144A

     6.13        11-1-2023         3,090,000         3,113,175   

First Data Corporation 144A

     5.00        1-15-2024         370,000         371,850   

First Data Corporation 144A

     5.75        1-15-2024         520,000         517,400   

First Data Corporation 144A

     6.75        11-1-2020         1,391,000         1,465,766   
             9,971,716   
          

 

 

 

Semiconductors & Semiconductor Equipment : 0.67%

          

Micron Technology Incorporated 144A

     5.25        8-1-2023         600,000         486,000   

Micron Technology Incorporated 144A

     5.25        1-15-2024         400,000         325,000   

Micron Technology Incorporated

     5.50        2-1-2025         1,675,000         1,323,250   

Micron Technology Incorporated 144A

     5.63        1-15-2026         550,000         426,250   

Micron Technology Incorporated

     5.88        2-15-2022         1,410,000         1,254,900   
             3,815,400   
          

 

 

 

Software : 0.89%

          

Activision Blizzard Incorporated 144A

     5.63        9-15-2021         1,155,000         1,212,750   

Activision Blizzard Incorporated 144A

     6.13        9-15-2023         285,000         304,950   

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

     9.00        10-15-2019         4,375,000         2,493,750   

Emdeon Incorporated 144A

     6.00        2-15-2021         1,057,000         977,857   

SS&C Technologies Incorporated 144A

     5.88        7-15-2023         90,000         93,150   
             5,082,457   
          

 

 

 

Technology Hardware, Storage & Peripherals : 1.43%

          

NCR Corporation

     5.88        12-15-2021         380,000         373,350   

NCR Corporation

     6.38        12-15-2023         7,865,000         7,781,395   
             8,154,745   
          

 

 

 

Materials : 2.38%

          

Chemicals : 0.08%

          

Celanese US Holdings LLC

     5.88        6-15-2021         440,000         466,400   
          

 

 

 

 

6


Wells Fargo Income Opportunities Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Containers & Packaging : 2.30%

          

Ball Corporation

     5.25     7-1-2025       $ 305,000       $ 314,150   

Crown Americas LLC

     6.25        2-1-2021         515,000         532,381   

Crown Cork & Seal Company Incorporated

     7.38        12-15-2026         60,000         64,200   

Crown Cork & Seal Company Incorporated (i)

     7.50        12-15-2096         1,225,000         1,212,750   

Owens-Brockway Glass Container Incorporated 144A

     5.38        1-15-2025         925,000         862,563   

Owens-Brockway Glass Container Incorporated 144A

     5.88        8-15-2023         1,300,000         1,275,625   

Owens-Brockway Glass Container Incorporated 144A

     6.38        8-15-2025         4,805,000         4,732,925   

Owens-Illinois Incorporated

     7.80        5-15-2018         837,000         912,330   

Sealed Air Corporation 144A

     5.13        12-1-2024         1,775,000         1,775,000   

Silgan Holdings Incorporated

     5.00        4-1-2020         1,400,000         1,426,250   
             13,108,174   
          

 

 

 

Metals & Mining : 0.00%

          

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

     11.50        2-1-2020         5,985,000         0   
          

 

 

 

Telecommunication Services : 14.24%

          

Diversified Telecommunication Services : 5.97%

          

Citizens Communications Company

     7.88        1-15-2027         830,000         639,100   

Frontier Communications Corporation

     8.13        10-1-2018         1,980,000         2,022,075   

Frontier Communications Corporation

     8.25        4-15-2017         2,380,000         2,493,050   

Frontier Communications Corporation

     8.50        4-15-2020         1,000,000         991,250   

GCI Incorporated

     6.75        6-1-2021         4,145,000         4,113,913   

GCI Incorporated

     6.88        4-15-2025         2,150,000         2,107,000   

Level 3 Financing Incorporated

     5.13        5-1-2023         1,595,000         1,602,975   

Level 3 Financing Incorporated

     5.38        8-15-2022         2,545,000         2,599,081   

Level 3 Financing Incorporated 144A

     5.38        1-15-2024         1,125,000         1,136,250   

Level 3 Financing Incorporated

     5.38        5-1-2025         1,595,000         1,604,969   

Level 3 Financing Incorporated

     5.63        2-1-2023         1,275,000         1,303,688   

Level 3 Financing Incorporated

     6.13        1-15-2021         1,690,000         1,770,275   

Level 3 Financing Incorporated

     7.00        6-1-2020         297,000         311,850   

Qwest Corporation (i)

     7.63        8-3-2021         440,000         439,450   

Syniverse Holdings Incorporated

     9.13        1-15-2019             11,370,000         4,320,600   

Windstream Corporation

     6.38        8-1-2023         1,250,000         903,125   

Windstream Corporation

     7.88        11-1-2017         5,380,000         5,622,100   
                 33,980,751   
          

 

 

 

Wireless Telecommunication Services : 8.27%

          

MetroPCS Wireless Incorporated

     6.63        11-15-2020         5,910,000         6,078,435   

SBA Communications Corporation

     4.88        7-15-2022         1,485,000         1,485,000   

SBA Communications Corporation

     5.63        10-1-2019         270,000         280,800   

SBA Communications Corporation

     5.75        7-15-2020         2,795,000         2,899,813   

Sprint Capital Corporation

     6.88        11-15-2028         19,435,000         12,827,100   

Sprint Capital Corporation

     8.75        3-15-2032         6,780,000         4,779,900   

Sprint Communications Incorporated

     7.00        8-15-2020         380,000         279,300   

Sprint Communications Incorporated

     11.50        11-15-2021         1,200,000         1,008,000   

Sprint Corporation

     7.13        6-15-2024         2,035,000         1,373,625   

Sprint Corporation

     7.63        2-15-2025         675,000         461,109   

Sprint Corporation

     7.88        9-15-2023         1,160,000         829,400   

T-Mobile USA Incorporated

     6.00        3-1-2023         500,000         502,750   

T-Mobile USA Incorporated

     6.13        1-15-2022         140,000         142,450   

T-Mobile USA Incorporated

     6.25        4-1-2021         290,000         295,800   

T-Mobile USA Incorporated

     6.38        3-1-2025         2,800,000         2,807,000   

T-Mobile USA Incorporated

     6.46        4-28-2019         265,000         273,281   

T-Mobile USA Incorporated

     6.50        1-15-2024         140,000         141,400   

T-Mobile USA Incorporated

     6.50        1-15-2026         365,000         363,175   

T-Mobile USA Incorporated

     6.54        4-28-2020         275,000         283,250   

T-Mobile USA Incorporated

     6.63        4-28-2021         1,510,000         1,560,963   

T-Mobile USA Incorporated

     6.63        4-1-2023         825,000         843,563   

T-Mobile USA Incorporated

     6.73        4-28-2022         5,645,000         5,800,238   

T-Mobile USA Incorporated

     6.84        4-28-2023         1,765,000         1,822,363   
             47,138,715   
          

 

 

 

 

7


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Income Opportunities Fund

 

Security name    Interest rate     Maturity date      Principal      Value  

Utilities : 3.72%

          

Electric Utilities : 0.74%

          

Energy Future Intermediate Holding Company LLC (s)

     10.00     12-1-2020       $ 150,000       $ 4,875   

Otter Tail Corporation (i)

     9.00        12-15-2016         3,985,000         4,190,498   
             4,195,373   
          

 

 

 

Gas Utilities : 0.77%

          

AmeriGas Finance LLC

     6.75        5-20-2020         1,675,000         1,658,250   

AmeriGas Finance LLC

     7.00        5-20-2022         2,810,000         2,753,800   
             4,412,050   
          

 

 

 

Independent Power & Renewable Electricity Producers : 2.21%

          

Calpine Corporation 144A

     5.88        1-15-2024         455,000         466,375   

Calpine Corporation 144A

     6.00        1-15-2022         865,000         898,519   

Calpine Corporation 144A

     7.88        1-15-2023         872,000         930,860   

NSG Holdings LLC 144A

     7.75        12-15-2025         5,467,116         5,767,808   

Reliant Energy Incorporated

     9.24        7-2-2017         841,834         835,520   

Reliant Energy Incorporated

     9.68        7-2-2026         780,000         764,400   

TerraForm Power Operating LLC 144A

     5.88        2-1-2023         1,695,000         1,351,763   

TerraForm Power Operating LLC 144A

     6.13        6-15-2025             2,050,000         1,583,625   
             12,598,870   
          

 

 

 

Total Corporate Bonds and Notes
(Cost $736,498,151)

                 666,145,701   
          

 

 

 

Loans : 4.86%

          

Consumer Discretionary : 1.60%

          

Hotels, Restaurants & Leisure : 0.12%

          

CCM Merger Incorporated ±

     4.50        8-8-2021         662,066         657,928   
          

 

 

 

Media : 0.76%

          

Learfield Communications Incorporated ±

     8.75        10-9-2021         4,404,984         4,338,910   
          

 

 

 

Specialty Retail : 0.72%

          

Focus Brands Incorporated ±

     10.25        8-21-2018         4,124,203         4,113,892   
          

 

 

 

Financials : 0.26%

          

Diversified Financial Services : 0.17%

          

American Beacon Advisors Incorporated ±(i)

     9.75        3-3-2023         1,010,000         989,800   
          

 

 

 

Insurance : 0.09%

          

Asurion LLC ±

     8.50        3-3-2021         575,000         483,822   
          

 

 

 

Industrials : 0.40%

          

Commercial Services & Supplies : 0.19%

          

W3 Company (i)±

     9.25        9-13-2020         488,775         219,949   

WASH Multifamily Laundry Systems LLC ±

     4.25        5-14-2022         575,767         555,258   

WASH Multifamily Laundry Systems LLC ±

     4.25        5-14-2022         100,834         97,242   

WASH Multifamily Laundry Systems LLC ±

     8.00        5-12-2023         29,808         27,908   

WASH Multifamily Laundry Systems LLC ±(i)

     8.00        5-14-2023         170,192         159,342   
             1,059,699   
          

 

 

 

Transportation Infrastructure : 0.21%

          

HGIM Corporation ±

     5.50        6-18-2020         2,592,371         1,228,136   
          

 

 

 

Information Technology : 0.11%

          

Technology Hardware, Storage & Peripherals : 0.11%

          

Peak 10 Incorporated ±(i)

     8.25        6-17-2022         700,239         637,218   
          

 

 

 

 

8


Wells Fargo Income Opportunities Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

Security name    Interest rate     Maturity date      Principal      Value  

Telecommunication Services : 0.73%

          

Diversified Telecommunication Services : 0.57%

          

nTelos Incorporated ±

     5.75     11-9-2019       $ 3,288,973       $ 3,272,528   
          

 

 

 

Wireless Telecommunication Services : 0.16%

          

LTS Buyer LLC ±(i)

     8.00        4-12-2021         935,369         894,447   
          

 

 

 

Utilities : 1.76%

          

Electric Utilities : 1.76%

          

Texas Competitive Electric Holdings Company LLC ±(s)

     4.66        10-10-2016             34,355,889         10,023,331   
          

 

 

 

Total Loans (Cost $52,512,141)

                 27,699,711   
          

 

 

 
     Dividend yield            Shares         

Preferred Stocks : 0.36%

          

Financials : 0.36%

          

Banks : 0.36%

          

GMAC Capital Trust I ±

     7.98           81,784         2,081,403   
          

 

 

 

Total Preferred Stocks (Cost $2,078,248)

             2,081,403   
          

 

 

 
     Interest rate                      

Yankee Corporate Bonds and Notes : 8.77%

          

Energy : 1.16%

          

Oil, Gas & Consumable Fuels : 1.16%

          

Baytex Energy Corporation 144A

     5.63        6-1-2024       $ 565,000         327,700   

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

     9.50        12-1-2016         2,119,383         847,753   

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

     9.50        12-1-2016         290,088         116,035   

Teekay Corporation

     8.50        1-15-2020         6,828,000         4,301,640   

Teekay Corporation 144A

     8.50        1-15-2020         1,650,000         1,039,500   
             6,632,628   
          

 

 

 

Financials : 0.13%

          

Banks : 0.13%

          

Nielsen Holding and Finance BV 144A

     5.50        10-1-2021         700,000         719,250   

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

     0.00        12-24-2033         1,540,000         0   
             719,250   
          

 

 

 

Health Care : 1.92%

          

Pharmaceuticals : 1.92%

          

Mallinckrodt plc 144A

     5.50        4-15-2025         970,000         863,300   

Mallinckrodt plc 144A

     5.63        10-15-2023         445,000         417,188   

Valeant Pharmaceuticals International Incorporated 144A

     5.63        12-1-2021         140,000         129,150   

Valeant Pharmaceuticals International Incorporated 144A

     5.88        5-15-2023         1,610,000         1,440,950   

Valeant Pharmaceuticals International Incorporated 144A

     6.13        4-15-2025         900,000         808,875   

Valeant Pharmaceuticals International Incorporated 144A

     6.75        8-15-2018         1,120,000         1,111,600   

Valeant Pharmaceuticals International Incorporated 144A

     7.50        7-15-2021         6,225,000         6,162,750   
             10,933,813   
          

 

 

 

Industrials : 0.59%

          

Building Products : 0.06%

          

Allegion plc

     5.88        9-15-2023         340,000         351,050   
          

 

 

 

 

9


Portfolio of investments — January 31, 2016 (unaudited)    Wells Fargo Income Opportunities Fund

 

Security name          Interest rate     Maturity date      Principal      Value  

Commercial Services & Supplies : 0.47%

            

GFL Environmental Incorporated 144A

       7.88     4-1-2020       $ 2,680,000       $ 2,666,600   
            

 

 

 

Machinery : 0.06%

            

Sensata Technologies BV 144A

       5.00        10-1-2025         385,000         370,563   
            

 

 

 

Materials : 1.29%

            

Containers & Packaging : 0.61%

            

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

       8.63        6-15-2019         1,662,270         1,529,288   

Ardagh Packaging Finance plc 144A

       9.13        10-15-2020         1,925,000         1,929,813   
               3,459,101   
            

 

 

 

Metals & Mining : 0.34%

            

ArcelorMittal SA

       6.13        6-1-2025         175,000         126,875   

ArcelorMittal SA

       7.25        2-25-2022         585,000         475,313   

Novelis Incorporated

       8.38        12-15-2017         250,000         240,000   

Novelis Incorporated

       8.75        12-15-2020         1,195,000         1,086,136   
               1,928,324   
            

 

 

 

Paper & Forest Products : 0.34%

            

Sappi Limited 144A(i)

       7.50        6-15-2032         2,155,000         1,939,500   
            

 

 

 

Telecommunication Services : 3.68%

            

Diversified Telecommunication Services : 3.42%

            

Intelsat Jackson Holdings SA

       5.50        8-1-2023              11,740,000         9,362,623   

Intelsat Jackson Holdings SA

       7.25        10-15-2020         1,200,000         1,032,000   

Intelsat Jackson Holdings SA

       7.50        4-1-2021         3,364,000         2,901,450   

Intelsat Luxembourg SA

       7.75        6-1-2021         2,595,000         1,128,825   

Intelsat Luxembourg SA

       8.13        6-1-2023         10,050,000         4,145,625   

Virgin Media Finance plc 144A

       5.38        4-15-2021         274,500         280,676   

Virgin Media Finance plc 144A

       6.38        4-15-2023         605,000         620,125   
                   19,471,324   
            

 

 

 

Wireless Telecommunication Services : 0.26%

            

Telesat Canada Incorporated 144A

       6.00        5-15-2017         1,475,000         1,486,063   
            

 

 

 

Total Yankee Corporate Bonds and Notes
(Cost $65,368,917)

               49,958,216   
            

 

 

 
           Yield            Shares         

Short-Term Investments : 5.79%

            

Investment Companies : 5.79%

            

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

   

    0.40           32,982,808         32,982,808   
            

 

 

 

Total Short-Term Investments
(Cost $32,982,808)

               32,982,808   
            

 

 

 

Total investments in securities
(Cost $890,714,708)*

     136.85             779,703,690   

Other assets and liabilities, net

     (36.85             (209,947,453
  

 

 

           

 

 

 

Total net assets

     100.00           $     569,756,237   
  

 

 

           

 

 

 

 

Non-income-earning security
(i) Illiquid security
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.
¥ 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.
± Variable rate investment. The rate shown is the rate in effect at period end.

 

10


Wells Fargo Income Opportunities Fund    Portfolio of investments — January 31, 2016 (unaudited)

 

(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.
* Cost for federal income tax purposes is $895,554,093 and unrealized gains (losses) consists of:

 

Gross unrealized gains

   $ 8,778,834   

Gross unrealized losses

     (124,629,237
  

 

 

 

Net unrealized losses

   $ (115,850,403

 

Abbreviations:  
LLC   Limited liability company
LP   Limited partnership
plc   Public limited company
REIT   Real estate investment trust

 

11


Wells Fargo Income Opportunities 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.

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 of Wells Fargo Funds Management, LLC. 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.

Loans

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

Fair valuation measurements

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to 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 :

           

Common stocks

           

Materials

   $ 546       $ 0       $ 0       $ 546   

Telecommunication services

     835,305         0         0         835,305   

Corporate bonds and notes

     0         666,145,701         0         666,145,701   

Loans

     0         13,940,164         13,759,547         27,699,711   

Preferred stocks

           

Financials

     2,081,403         0         0         2,081,403   

Yankee corporate bonds and notes

     0         48,994,428         963,788         49,958,216   

Short-term investments

           

Investment companies

     32,982,808         0         0         32,982,808   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 35,900,062       $ 729,080,293       $ 14,723,335       $ 779,703,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

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 or Level 2.

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

 

     Loans      Yankee
corporate
bonds and
notes
     Total  

Balance as of April 31, 2015

   $ 19,480,727       $ 0       $ 19,480,727   

Accrued discounts (premiums)

     47,755         0         47,755   

Realized gains (losses)

     (77,401      0         (77,401

Change in unrealized gains (losses)

     63,148         0         63,148   

Purchases

     198,500         0         198,500   

Sales

     (6,590,400      0         (6,590,400

Transfers into Level 3

     637,218         963,788         1,601,006   

Transfers out of Level 3

     0         0         0   
  

 

 

    

 

 

    

 

 

 

Balance as of January 31, 2016

   $ 13,759,547       $ 963,788       $ 14,723,335   
  

 

 

    

 

 

    

 

 

 

Change in unrealized gains (losses) relating to securities still held at January 31, 2016

   $ 34,123       $ 0       $ 34,123   
  

 

 

    

 

 

    

 

 

 

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


The 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 Income Opportunities 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 Income Opportunities 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 Income Opportunities 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