UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21331

Wells Fargo Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., 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

Date of reporting period: April 30, 2017

ITEM 1. REPORT TO STOCKHOLDERS

Semi-Annual Report

April 30, 2017

Wells Fargo Multi-Sector Income Fund (ERC)

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Contents

Letter to shareholders	2
Performance highlights	4
Summary portfolio of investments*	7
Financial statements
Statement of assets and liabilities	19
Statement of operations	20
Statement of changes in net assets	21
Statement of cash flows	22
Financial highlights	23
Notes to financial statements	24
Other information	30
Automatic dividend reinvestment plan	33
List of abbreviations	34

* A complete schedule of portfolio holdings as of the report date may be obtained, free of charge, by accessing the following website: https://www.wellsfargofunds.com/assets/edocs/regulatory/holdings/multi-sector-income-semi.pdf or by calling Wells Fargo Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSRS, is also available on the SEC’s website at sec.gov

The views expressed and any forward-looking statements are as of April 30, 2017, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

2 Wells Fargo Multi-Sector Income Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Despite heightened market volatility at times, in general, global stocks delivered double-digit results while bond markets were hurt by a rise in interest rates during the latter part of 2016.

Dear Shareholder:

As the new president of Wells Fargo Funds, now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Multi-Sector Income Fund for the six-month period that ended April 30, 2017. Despite heightened market volatility at times, in general, global stocks delivered double-digit results while bond markets were hurt by a rise in interest rates during the latter part of 2016. U.S. and international stocks returned 13.31% and 10.37%, respectively, for the six-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)², respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -0.67%.

During the last two months of 2016, prospects for faster growth and higher interest rates in the U.S. influenced markets.

Following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of progrowth policies, and supportive economic news helped the rally carry through the end of 2016. The buoyant environment sent interest rates higher as well. At its mid-December meeting, U.S. Federal Reserve (Fed) officials raised their short-term target interest rate for the first time in a year by a quarter percentage point to between 0.50% and 0.75%. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar. Rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas, although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed improvement in the first four months of 2017.

Stocks rallied globally, supported by signs of improvement in the U.S. and global economies. In the U.S., hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up. In March, Fed officials raised their short-term target interest rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose. Longer-term Treasury yields were little changed, however, leading to positive performance. Investment-grade corporate bonds and high-yield bonds benefited from strong demand. Municipal bond returns were also positive during the first four months of 2017, helped by strong demand and constrained new-issue supply. Outside the U.S., stocks in emerging markets benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also advanced as political risk declined. In the first round of French presidential

¹  The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

²  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

³  The Bloomberg Barclays U.S. Aggregate Bond Index (formerly known as Barclays U.S. Aggregate Bond Index) is a broad-based benchmark that measures the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Multi-Sector Income Fund 3

elections, Emmanuel Macron, a pro-EU candidate, garnered the most votes. Non-U.S. bonds also benefited from a decline in perceived risk, with credit spreads continuing to narrow.

Don’t let short-term uncertainty derail long-term investment goals.

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest in Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

Notice to shareholders

On May 12, 2017 the Fund announced the final results of its tender offer for up to 15% of its outstanding common shares. Approximately 46% of the Fund’s common shares outstanding were tendered. Because the total number of shares tendered exceeded the number of shares offered to purchase, all tendered shares were subject to proration in accordance with the terms of the offer to purchase. The Fund accepted 6,165,826 shares for cash payment at a price equal to 98% of the Fund’s net asset value per share effective as of the close of the regular trading session of the NYSE on May 12, 2017. Following the purchase of the tendered shares, the Fund had approximately 34,939,684 common shares outstanding.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Multi-Sector Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks a high level of current income consistent with limiting its overall exposure to domestic interest rate risk.

Adviser

Wells Fargo Funds Management, LLC

Subadvisers

First International Advisors, LLC

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Michael Lee

Niklas Nordenfelt, CFA^®

Tony Norris

Alex Perrin

Phillip Susser

Christopher Wightman

Peter Wilson

Noah Wise

Average annual total returns (%) as of April 30, 2017¹

	6 Months		1 Year		5 Year		10 Year
Based on market value		12.42		18.32		6.23		7.34
Based on net asset value (NAV) per share		5.16		14.11		6.14		7.21
Multi-Sector Income Blended Index2		3.42		8.70		4.18		5.56

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the sales of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Performance figures of the Fund do not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares. If taxes and such brokerage commissions had been reflected, performance would have been lower. To obtain performance information current to the most recent month-end, please call 1-800-222-8222.

The Fund’s expense ratio for the six months ended April 30, 2017, was 1.77% which includes 0.55% of interest expense.

Comparison of NAV vs. market value³

The use of leverage results in certain risks, including, among others, the likelihood of greater volatility of net asset value and the market value of common shares. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. Derivatives involve additional risks, including interest-rate risk, credit risk, the risk of improper valuation, and the risk of non-correlation to the relevant instruments that they are designed to hedge or closely track. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The Fund is exposed to mortgage- and asset-backed securities risk. This closed-end fund is no longer available as an initial public offering and is only offered through broker/dealers on the secondary market. A closed-end fund is not required to buy its shares back from investors upon request.

¹ Total returns based on market value are calculated assuming a purchase of common stock on the first day and sale on the last day of the period reported. Total returns based on NAV are calculated based on the NAV at the beginning of the period and end of the period. Dividends and distributions, if any, are assumed for the purposes of these calculations to be reinvested at prices obtained under the Fund’s Automatic Dividend Reinvestment Plan.

²  Source: Wells Fargo Funds Management, LLC. The Multi-Sector Income Blended Index is weighted 60.0% BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index, 18.0% J.P. Morgan GBI-EM Global Diversified Composite Index, 7.5% Bloomberg Barclays Credit Bond Index, 7.5% Bloomberg Barclays U.S. Securitized Index, and 7.0% J.P. Morgan Global Government Bond Index (ex U.S.). The Bloomberg Barclays Credit Bond Index (formerly Barclays Credit Bond Index) is an unmanaged index of fixed income securities composed of securities from the Bloomberg Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The Bloomberg Barclays U.S. Securitized Index (formerly Barclays U.S. Securitized Index) is an unmanaged composite of asset-backed securities, collateralized mortgage-backed securities (ERISA-eligible), and fixed-rate mortgage-backed securities. The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index tracks the performance of U.S. dollar denominated below investment grade corporate debt, currently in a coupon paying period, that is publicly issued in the U.S. domestic market. The J.P. Morgan GBI-EM Global Diversified Composite Index is an unmanaged index of debt instruments of 31 emerging countries. The J.P. Morgan Global Government Bond Index (ex U.S.) measures the total return from investing in 12 developed government bond markets: Australia, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, and the U.K. You cannot invest directly in an index.

³  This chart does not reflect any brokerage commissions charged on the purchase and sale of the Fund’s common stock. Dividends and distributions paid by the Fund are included in the Fund’s average annual total returns but have the effect of reducing the Fund’s NAV.

Performance highlights (unaudited) Wells Fargo Multi-Sector Income Fund 5

MANAGERS’ DISCUSSION

The Fund’s return based on market value was 12.42% for the six-month period that ended April 30, 2017. During the same period, the Fund’s return based on its net asset value (NAV) was 5.16%. Based on its NAV return, the Fund outperformed the Multi-Sector Income Blended Index, which returned 3.42% over this same period.

Overview

During the reporting period, U.S. Treasury rates rose sharply and then fell, the U.S. Federal Reserve (Fed) raised the target federal funds rate twice, and demand for yield-advantaged sectors remained strong. From a fundamental perspective, corporate leverage remained elevated for this point in the credit cycle, but the cash-flow impact of these higher leverage levels was offset by issuers’ ability to repay low-interest-rate debt. Within the mortgage/corporate bond market, BBB-rated bonds, in particular, did well amid strong demand for yield. Within the securitized sector, both commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS) outperformed U.S. Treasuries. Meanwhile, the high-yield bond market also had positive results. Internationally, Turkey lost its investment-grade rating in January and we sold our Turkish bonds as political risks remain elevated. Instead, the international portion of the Fund was invested in the bond markets of Mexico, Colombia, and South Africa. We also sold all of the Fund’s Brazilian bonds in March after Moody’s Investors Service, Inc., downgraded the country’s credit status to below investment grade.

Ten largest holdings (%) as of April 30, 20174
Republic of South Africa, 10.5%, 12-21-2026	2.16
Mexico, 8.00%, 11-07-2047	2.04
Malaysia, 4.23%, 6-30-2031	1.95
NGPL PipeCo LLC, 7.77%, 12-15-2037	1.76
Indonesia, 7.88%, 4-15-2019	1.73
LPL Holdings Incorporated, 5.75%, 9-15-2025	1.72
Indonesia, 8.38%, 9-15-2026	1.51
Colombia, 7.50%, 8-26-2026	1.42
Greektown Holdings LLC, 8.88%, 3-15-2019	1.34
Republic of South Africa, 7.75%, 2-28-2023	1.28

Credit quality as of April 30, 2017⁵

Contributors to performance

Securitized holdings added value during the period, and the allocation to CMBS was the largest contributor. Legacy RMBS holdings also contributed to results due to their more stable prepayments. Within the U.S. investment-grade sector, BBB-rated industrial credits and allocations to property and casualty bonds added to results. The high-yield portion of the Fund benefited from exposure to the wireless and electric utility industries. An overweight allocation to electric utilities as well as security selection within this sector contributed to results, as did an underweight to the retail sector. Within the international portion of the Fund, allocations to smaller and emerging bond markets, such as Brazil, Colombia, and Indonesia, added value during the reporting period, as did underweights to Poland and Thailand. An overweight to Mexico hurt results because Mexican bonds underperformed amid fears of greater U.S. protectionism. Meanwhile, yield-curve positioning helped results; the international portion of the Fund was underweight the very front end of the curve and underweight the longest maturities, leaving the bulk of the allocation to the outperforming part of the curves.

⁴  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁵ The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

6 Wells Fargo Multi-Sector Income Fund Performance highlights (unaudited)

Detractors from performance

The Fund’s holdings in certain RMBS and CMBS positions modestly detracted from performance during the period due to security-specific prepayment and ratings changes. An underweight to emerging markets sovereign credits modestly detracted. Within the high-yield portion, the Fund’s performance was hurt by its exposure to finance and energy exploration and production companies. An allocation to cash also detracted given the strong market over the period. Currency positions within the international portion detracted because an underweight to the Russian ruble more than offset positive contributions from a number of other currency positions, including the Brazilian real and Mexican peso.

Outlook

We believe the economy is likely to improve at a consistent pace and interest rates are likely to rise as the Fed continues to normalize monetary policy. Within U.S. mortgages and investment-grade corporate bonds, we are seeing opportunities within the credit and securitized sectors given current valuations. In particular, we expect to continue to focus on the medium-quality credit tiers of A-rated and BBB-rated securities as compelling sources of yield. Our credit exposure remains centered on industrials and financials, particularly banks

We view the credit and economic environment as better than average for high yield. Current spreads reflect the positive conditions but offer limited upside through compression in spreads. That said, spreads have been 100 basis points (100 basis points equals 1.00%) or more tighter than the current spreads in previous cycles and have remained below current spread levels for prolonged periods. Across asset classes, virtually everything is trading rich by historical measures. High yield, however, is rather unique in that it has historically benefited from relatively high coupons, which cushion price declines. With a benign default outlook, high yield may continue to do well on a relative basis, though idiosyncratic or individual bond risk is high. We believe spreads may remain flat or tighten in the short run before ultimately widening—potentially significantly—in the mid-to-longer term. Over a full cycle, we believe the best way to insulate the portfolio from periodic bouts of systemic fears and rebalancing is by following a bottom-up investment process that attempts to minimize downside risk while capturing the return potential of high-yield issuers.

On the international front, we have a positive outlook for emerging markets debt. Not only are many currencies—both emerging markets and European—gaining against the U.S. dollar amid expectations for faster U.S. economic growth without protectionism, but the likelihood of other central banks easing as the U.S. Fed tightens portends greater investor demand for emerging markets debt. Going forward, we believe that the smaller and emerging markets allocations provide the best long-term value in the months to come.

Effective maturity distribution as of April 30, 2017⁶

Country allocation as of April 30, 2017⁶

⁶  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

Summary portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 7

The Summary portfolio of investments shows the 50 largest portfolio holdings in unaffiliated issuers and any holdings exceeding 1% of the total net assets as of the report date. The remaining securities held are grouped as “Other securities” in each category.

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 1.54%
FHLMC		1.09-8.50	%		4-25-2020 to 7-25-2048	$	15,111,434	$	8,158,118		1.38	%
Other securities									956,184		0.16
Total Agency Securities (Cost $8,603,236)									9,114,302		1.54
Asset-Backed Securities: 0.21%
Other securities									1,260,530		0.21
Total Asset-Backed Securities (Cost $1,252,668)									1,260,530		0.21
						Shares
Common Stocks: 0.89%
Energy: 0.07%
Oil, Gas & Consumable Fuels: 0.07%
Other securities									406,302		0.07
Materials: 0.00%
Chemicals: 0.00%
Other securities									763		0.00
Utilities: 0.82%
Electric Utilities: 0.82%
Vistra Energy Corporation							327,375		4,894,256		0.82
Total Common Stocks (Cost $23,474,603)									5,301,321		0.89
						Principal
Corporate Bonds and Notes: 66.99%
Consumer Discretionary: 11.89%
Auto Components: 1.03%
Other securities									6,102,338		1.03
Distributors: 0.15%
Other securities									904,500		0.15
Diversified Consumer Services: 0.89%
Service Corporation International		7.50			4-1-2027	$	3,400,000		3,969,500		0.67
Other securities									1,291,163		0.22
									5,260,663		0.89
Food Products: 0.06%
Other securities									335,563		0.06

The accompanying notes are an integral part of these financial statements.

8 Wells Fargo Multi-Sector Income Fund Summary portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Hotels, Restaurants & Leisure: 1.99%
Greektown Holdings LLC 144A		8.88	%		3-15-2019	$	7,625,000	$	7,963,398		1.34	%
Other securities									3,825,125		0.65
									11,788,523		1.99
Internet & Direct Marketing Retail: 0.14%
Other securities									824,122		0.14
Leisure Products: 0.01%
Other securities									49,750		0.01
Media: 6.23%
CCO Holdings LLC		5.13-5.88			9-30-2022 to 5-1-2027		5,245,000		5,488,867		0.92
CCO Holdings LLC 144A		5.38			5-1-2025		4,150,000		4,326,375		0.73
CCO Holdings LLC 144A		5.75			2-15-2026		3,375,000		3,584,858		0.60
Gray Television Incorporated 144A		5.88			7-15-2026		3,875,000		4,010,625		0.68
Other securities									19,573,245		3.30
									36,983,970		6.23
Multiline Retail: 0.10%
Other securities									598,355		0.10
Specialty Retail: 1.21%
Other securities									7,168,648		1.21
Textiles, Apparel & Luxury Goods: 0.08%
Other securities									485,000		0.08
Consumer Staples: 1.58%
Beverages: 0.22%
Other securities									1,318,560		0.22
Food Products: 1.19%
Other securities									7,081,043		1.19
Household Products: 0.05%
Other securities									266,875		0.05
Tobacco: 0.12%
Other securities									734,591		0.12
Energy: 17.21%
Energy Equipment & Services: 5.40%
NGPL PipeCo LLC		7.12-9.63			12-15-2017 to 6-1-2019		2,495,000		2,562,761		0.43
NGPL PipeCo LLC 144A		7.77			12-15-2037		9,060,000		10,419,000		1.76
PHI Incorporated		5.25			3-15-2019		5,675,000		5,334,500		0.90
Other securities									13,733,388		2.31
									32,049,649		5.40

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Oil, Gas & Consumable Fuels: 11.81%
Enlink Midstream LLC		4.15-4.40	%		4-1-2024 to 6-1-2025	$	6,150,000	$	6,246,353		1.05	%
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		4,450,000		4,757,050		0.80
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		3,524,000		3,766,275		0.64
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		1,465,000		1,618,825		0.27
Sabine Pass Liquefaction LLC		5.63-5.88			2-1-2021 to 6-30-2026		5,795,000		6,377,207		1.08
Sabine Pass Liquefaction LLC		6.25			3-15-2022		3,550,000		3,982,784		0.67
SemGroup Corporation 144A		6.38			3-15-2025		3,425,000		3,442,125		0.58
Tallgrass Energy Partners LP 144A		5.50			9-15-2024		5,600,000		5,628,000		0.95
Other securities									34,196,653		5.77
									70,015,272		11.81
Financials: 8.63%
Banks: 0.73%
Other securities									4,307,031		0.73
Capital Markets: 0.33%
Other securities									1,992,826		0.33
Consumer Finance: 3.18%
OneMain Financial Group LLC 144A		7.25			12-15-2021		4,175,000		4,342,459		0.73
Springleaf Finance Corporation		6.00-8.25			9-15-2017 to 10-1-2023		1,900,000		1,988,022		0.34
Springleaf Finance Corporation		6.90			12-15-2017		4,550,000		4,669,438		0.79
Other securities									7,850,438		1.32
									18,850,357		3.18
Diversified Financial Services: 2.59%
LPL Holdings Incorporated 144A		5.75			9-15-2025		10,025,000		10,175,375		1.72
Other securities									5,201,095		0.87
									15,376,470		2.59
Insurance: 1.80%
Hub International Limited 144A		7.88			10-1-2021		3,950,000		4,138,218		0.70
Other securities									6,519,053		1.10
									10,657,271		1.80
Health Care: 5.92%
Biotechnology: 0.13%
Other securities									783,952		0.13
Health Care Equipment & Supplies: 0.80%
Other securities									4,751,919		0.80
Health Care Providers & Services: 4.04%
Select Medical Corporation		6.38			6-1-2021		4,065,000		4,156,463		0.70
Vizient Incorporated 144A		10.38			3-1-2024		3,550,000		4,064,750		0.68
Other securities									15,702,375		2.66
									23,923,588		4.04

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo Multi-Sector Income Fund Summary portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Health Care Technology: 0.35%
Other securities								$	2,078,438		0.35	%
Life Sciences Tools & Services: 0.14%
Other securities									822,034		0.14
Pharmaceuticals: 0.46%
Other securities									2,723,722		0.46
Industrials: 2.72%
Aerospace & Defense: 0.17%
Other securities									1,031,760		0.17
Airlines: 0.35%
Other securities									2,042,612		0.35
Commercial Services & Supplies: 1.62%
Other securities									9,603,083		1.62
Professional Services: 0.15%
Other securities									873,523		0.15
Road & Rail: 0.11%
Other securities									652,557		0.11
Trading Companies & Distributors: 0.32%
Other securities									1,923,844		0.32
Information Technology: 6.26%
Communications Equipment: 0.33%
Other securities									1,938,113		0.33
Electronic Equipment, Instruments & Components: 1.34%
Jabil Circuit Incorporated		8.25	%		3-15-2018	$	5,275,000		5,566,671		0.94
Other securities									2,375,370		0.40
									7,942,041		1.34
Internet Software & Services: 0.41%
Other securities									2,411,195		0.41
IT Services: 0.88%
Other securities									5,221,788		0.88
Semiconductors & Semiconductor Equipment: 0.38%
Other securities									2,267,720		0.38
Software: 0.31%
Other securities									1,854,844		0.31

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Technology Hardware, Storage & Peripherals: 2.61%
Diamond 1 Finance Corporation 144A		5.88	%		6-15-2021	$	2,825,000	$	2,994,500		0.50	%
Diamond 1 Finance Corporation 144A		7.13			6-15-2024		5,400,000		5,968,766		1.01
NCR Corporation		6.38			12-15-2023		5,125,000		5,494,000		0.93
Other securities									1,029,947		0.17
									15,487,213		2.61
Materials: 1.36%
Chemicals: 0.20%
Other securities									1,193,372		0.20
Containers & Packaging: 1.16%
Other securities									6,860,196		1.16
Metals & Mining: 0.00%
Other securities									0		0.00
Real Estate: 4.37%
Equity REITs: 4.37%
DuPont Fabros Technology Incorporated LP		5.63			6-15-2023		2,975,000		3,146,063		0.53
DuPont Fabros Technology Incorporated LP		5.88			9-15-2021		4,655,000		4,852,838		0.82
Other securities									17,918,204		3.02
									25,917,105		4.37
Telecommunication Services: 3.60%
Diversified Telecommunication Services: 1.32%
Other securities									7,825,072		1.32
Wireless Telecommunication Services: 2.28%
Sprint Capital Corporation		6.88			11-15-2028		5,500,000		5,967,500		1.01
Sprint Capital Corporation		8.75			3-15-2032		625,000		769,138		0.13
Other securities									6,808,000		1.14
									13,544,638		2.28
Utilities: 3.45%
Electric Utilities: 0.14%
Other securities									803,971		0.14
Gas Utilities: 0.17%
Other securities									1,002,500		0.17
Independent Power & Renewable Electricity Producers: 2.91%
NSG Holdings LLC 144A		7.75			12-15-2025		5,042,891		5,421,108		0.91
Pattern Energy Group Incorporated 144A		5.88			2-1-2024		3,675,000		3,771,469		0.64
TerraForm Power Operating LLC 144A		6.38			2-1-2023		5,425,000		5,601,313		0.94
TerraForm Power Operating LLC 144A		6.63			6-15-2025		1,850,000		1,956,375		0.33
Other securities									538,175		0.09
									17,288,440		2.91

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo Multi-Sector Income Fund Summary portfolio of investments—April 30, 2017 (unaudited)

Security name	Value		Percent of net assets
Multi-Utilities: 0.23%
Other securities	$	1,385,413		0.23	%
Total Corporate Bonds and Notes (Cost $378,205,690)		397,306,030		66.99
Foreign Corporate Bonds and Notes @: 1.85%
Consumer Discretionary: 0.11%
Internet & Direct Marketing Retail: 0.04%
Other securities		233,631		0.04
Media: 0.07%
Other securities		441,988		0.07
Consumer Staples: 0.16%
Food Products: 0.16%
Other securities		937,603		0.16
Energy: 0.24%
Energy Equipment & Services: 0.02%
Other securities		112,618		0.02
Oil, Gas & Consumable Fuels: 0.22%
Other securities		1,320,476		0.22
Financials: 0.98%
Banks: 0.93%
Other securities		5,527,506		0.93
Diversified Financial Services: 0.05%
Other securities		277,378		0.05
Information Technology: 0.03%
Semiconductors & Semiconductor Equipment: 0.03%
Other securities		191,606		0.03
Materials: 0.05%
Chemicals: 0.05%
Other securities		281,620		0.05
Telecommunication Services: 0.28%
Diversified Telecommunication Services: 0.03%
Other securities		187,917		0.03
Wireless Telecommunication Services: 0.25%
Other securities		1,441,010		0.25
Total Foreign Corporate Bonds and Notes (Cost $14,117,001)		10,953,353		1.85

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Foreign Government Bonds @: 20.49%
Colombia (COP)		7.00	%		9-11-2019		18,500,000,000	$	6,463,901		1.09	%
Colombia (COP)		7.00			5-4-2022		18,650,000,000		6,656,719		1.12
Colombia (COP)		7.50			8-26-2026		22,725,000,000		8,406,983		1.42
Colombia (COP)		7.75			4-14-2021		5,250,000,000		1,919,409		0.32
Hungary (HUF)		6.75			11-24-2017		1,305,000,000		4,709,103		0.79
Indonesia (IDR)		7.88			4-15-2019		133,640,000,000		10,276,915		1.73
Indonesia (IDR)		8.38			9-15-2026		110,000,000,000		8,970,665		1.51
Malaysia (MYR)		4.18			7-15-2024		19,850,000		4,641,717		0.78
Malaysia (MYR)		4.23			6-30-2031		51,300,000		11,537,596		1.95
Mexico (MXN)		5.75			3-5-2026		152,000,000		7,334,256		1.24
Mexico (MXN)		8.00			11-7-2047		217,500,000		12,078,397		2.04
Mexico (MXN)		10.00			12-5-2024		62,120,000		3,851,158		0.65
Mexico (MXN)		10.00			12-5-2024		14,100,000		874,136		0.15
New Zealand (NZD)		4.50			4-15-2027		8,250,000		6,357,150		1.07
Queensland Treasury (AUD)		5.75			7-22-2024		4,100,000		3,668,924		0.62
Republic of South Africa (ZAR)		7.75			2-28-2023		103,000,000		7,580,245		1.28
Republic of South Africa (ZAR)		10.50			12-21-2026		153,500,000		12,820,465		2.16
Other securities									3,389,344		0.57
Total Foreign Government Bonds (Cost $135,837,614)									121,537,083		20.49
Loans: 17.24%
Consumer Discretionary: 5.10%
Auto Components: 0.55%
Other securities									3,230,517		0.55
Distributors: 0.42%
Other securities									2,474,192		0.42
Food & Staples Retailing: 0.07%
Other securities									404,000		0.07
Hotels, Restaurants & Leisure: 1.11%
Montreign Operating Company ±		9.25			12-7-2022	$	3,775,000		3,841,063		0.65
Other securities					2,767,382						0.46
									6,608,445		1.11
Household Products: 0.32%
Other securities									1,925,290		0.32
Leisure Products: 0.24%
Other securities									1,449,733		0.24
Media: 2.36%
Learfield Communications Incorporated ±		4.25			12-1-2023		3,491,250		3,517,434		0.59
Salem Communications Corporation ±		4.50			3-16-2020		5,150,190		5,047,186		0.85
Other securities									5,434,753		0.92
									13,999,373		2.36

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo Multi-Sector Income Fund Summary portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Multiline Retail: 0.03%
Other securities								$	161,594		0.03	%
Consumer Staples: 0.15%
Food Products: 0.15%
Other securities									873,740		0.15
Energy: 1.40%
Energy Equipment & Services: 0.77%
Hummel Station LLC ±		7.00	%		10-27-2022	$	4,929,434		4,584,373		0.77
Oil, Gas & Consumable Fuels: 0.63%
Other securities									3,699,516		0.63
Financials: 1.47%
Capital Markets: 0.07%
Other securities									428,439		0.07
Consumer Finance: 0.04%
Other securities									199,485		0.04
Diversified Financial Services: 0.80%
Other securities									4,736,006		0.80
Insurance: 0.56%
Other securities									3,342,120		0.56
Health Care: 1.74%
Health Care Equipment & Supplies: 0.32%
Other securities									1,888,248		0.32
Health Care Providers & Services: 1.09%
Other securities									6,499,457		1.09
Health Care Technology: 0.13%
Other securities									771,975		0.13
Life Sciences Tools & Services: 0.08%
Other securities									476,248		0.08
Pharmaceuticals: 0.12%
Other securities									703,684		0.12
Industrials: 3.01%
Aerospace & Defense: 0.42%
Other securities									2,485,009		0.42
Commercial Services & Supplies: 2.00%
Other securities									11,853,587		2.00

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Machinery: 0.10%
Other securities								$	613,273		0.10	%
Transportation Infrastructure: 0.49%
Other securities									2,904,200		0.49
Information Technology: 1.95%
Electronic Equipment, Instruments & Components: 0.42%
Other securities									2,496,272		0.42
Internet Software & Services: 1.37%
Ancestry.com Incorporated ±		4.25	%		10-19-2023	$	2,974,950		2,998,184		0.51
Ancestry.com Incorporated ±		9.27			10-19-2024		3,325,000		3,399,813		0.57
Other securities									1,739,996		0.29
									8,137,993		1.37
Semiconductors & Semiconductor Equipment: 0.06%
Other securities									349,497		0.06
Software: 0.10%
Other securities									572,765		0.10
Materials: 0.50%
Containers & Packaging: 0.50%
Other securities									2,952,547		0.50
Real Estate: 0.91%
Equity REITs: 0.53%
Other securities									3,178,238		0.53
Real Estate Management & Development: 0.38%
Other securities									2,250,530		0.38
Telecommunication Services: 0.91%
Diversified Telecommunication Services: 0.52%
Other securities									3,100,083		0.52
Wireless Telecommunication Services: 0.39%
Other securities									2,289,277		0.39
Utilities: 0.10%
Electric Utilities: 0.10%
Other securities									575,358		0.10
Total Loans (Cost $101,656,844)									102,215,064		17.24

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo Multi-Sector Income Fund Summary portfolio of investments—April 30, 2017 (unaudited)

Security name								Value		Percent of net assets
Municipal Obligations: 0.01%
New York: 0.01%
Other securities								$	44,818		0.01	%
Total Municipal Obligations (Cost $45,000)									44,818		0.01
Non-Agency Mortgage-Backed Securities: 4.06%
Other securities									24,098,948		4.06
Total Non-Agency Mortgage-Backed Securities (Cost $21,114,725)									24,098,948		4.06
						Shares
Rights: 0.07%
Utilities: 0.07%
Electric Utilities: 0.07%
Other securities							327,375		409,219		0.07
Total Rights (Cost $360,113)									409,219		0.07
	Interest rate			Maturity date		Principal
Yankee Corporate Bonds and Notes: 9.25%
Consumer Discretionary: 0.48%
Media: 0.48%
Other securities									2,846,312		0.48
Consumer Staples: 0.27%
Beverages: 0.14%
Other securities									817,742		0.14
Tobacco: 0.13%
Other securities									764,329		0.13
Energy: 1.75%
Energy Equipment & Services: 0.27%
Other securities									1,583,351		0.27
Oil, Gas & Consumable Fuels: 1.48%
Teekay Corporation		8.50	%		1-15-2020	$	5,625,000		5,568,750		0.94
Other securities									3,212,114		0.54
									8,780,864		1.48
Financials: 0.84%
Banks: 0.64%
Other securities									3,801,406		0.64
Diversified Financial Services: 0.20%
Other securities									1,176,643		0.20

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Health Care: 1.88%
Pharmaceuticals: 1.88%
Valeant Pharmaceuticals International Incorporated		5.63-7.50	%		10-15-2020 to 5-15-2023	$	5,555,000	$	4,403,063		0.75	%
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		6,775,000		5,001,644		0.84
Other securities									1,728,803		0.29
									11,133,510		1.88
Industrials: 1.14%
Building Products: 0.04%
Other securities									224,175		0.04
Commercial Services & Supplies: 0.93%
Other securities									5,507,626		0.93
Machinery: 0.04%
Other securities									239,994		0.04
Road & Rail: 0.13%
Other securities									807,505		0.13
Materials: 0.84%
Containers & Packaging: 0.49%
Other securities									2,928,919		0.49
Metals & Mining: 0.35%
Other securities									2,072,649		0.35
Telecommunication Services: 1.94%
Diversified Telecommunication Services: 1.83%
Intelsat Jackson Holdings SA		5.50			8-1-2023		6,775,000		5,784,156		0.97
Intelsat Jackson Holdings SA		7.25			4-1-2019		800,000		771,000		0.13
Other securities									4,319,996		0.73
									10,875,152		1.83
Wireless Telecommunication Services: 0.11%
Other securities									616,569		0.11
Utilities: 0.11%
Electric Utilities: 0.11%
Other securities									684,938		0.11
Total Yankee Corporate Bonds and Notes (Cost $60,248,213)									54,861,684		9.25

The accompanying notes are an integral part of these financial statements.

18 Wells Fargo Multi-Sector Income Fund Summary portfolio of investments—April 30, 2017 (unaudited)

Security name	Yield			Shares		Value			Percent of net assets
Short-Term Investments: 6.86%
Investment Companies: 6.86%
Wells Fargo Government Money Market Select Class (l)(u)##		0.68	%		40,658,824	$	40,658,824			6.86	%
Total Short-Term Investments (Cost $40,658,824)							40,658,824			6.86
Total investments in securities (Cost $788,574,531) *							767,761,176			129.46	%
Other assets and liabilities, net							(174,693,355	)		(29.46	)
Total net assets						$	593,067,821			100.00	%

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.

@ Foreign bond principal is denominated in the local currency of the issuer.

± Variable rate investment. The rate shown is the rate in effect at period end.

(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 unfunded loans.

* Cost for federal income tax purposes is $793,103,154 and unrealized gains (losses) consists of:

Gross unrealized gains	$	26,964,636
Gross unrealized losses		(52,306,614	)
Net unrealized losses	$	(25,341,978	)

The accompanying notes are an integral part of these financial statements.

Statement of assets and liabilities—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 19

Assets
Investments
In unaffiliated securities, at value (cost $747,915,707)	$	727,102,352
In affiliated securities, at value (cost $40,658,824)		40,658,824
Total investments, at value (cost $788,574,531)		767,761,176
Cash		440,122
Foreign currency, at value (cost $562,204)		560,509
Receivable for investments sold		8,329,919
Principal paydown receivable		7,697
Receivable for interest		9,984,027
Prepaid expenses and other assets		8,243
Total assets		787,091,693
Liabilities
Dividends payable		4,320,190
Payable for investments purchased		1,264,480
Secured borrowing payable		187,000,000
Advisory fee payable		365,680
Administration fee payable		33,244
Accrued expenses and other liabilities		1,040,278
Total liabilities		194,023,872
Total net assets	$	593,067,821
NET ASSETS CONSIST OF
Paid-in capital	$	730,125,578
Overdistributed net investment income		(7,877,606	)
Accumulated net realized losses on investments		(108,366,512	)
Net unrealized losses on investments		(20,813,639	)
Total net assets	$	593,067,821
NET ASSET VALUE PER SHARE
Based on $593,067,821 divided by 41,105,510 shares issued and outstanding (100,000,000 shares authorized)		$14.43

The accompanying notes are an integral part of these financial statements.

20 Wells Fargo Multi-Sector Income Fund Statement of operations—six months ended April 30, 2017 (unaudited)

Investment income
Interest (net of foreign interest withholding taxes of $274,369)	$	24,595,938
Dividends		759,525
Income from affiliated securities		82,326
Total investment income		25,437,789
Expenses
Advisory fee		2,195,114
Administration fee		199,556
Custody and accounting fees		84,314
Professional fees		651,837
Shareholder report expenses		341,853
Trustees’ fees and expenses		34,654
Transfer agent fees		22,037
Interest expense		1,591,897
Other fees and expenses		18,457
Total expenses		5,139,719
Net investment income		20,298,070
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(3,364,585	)
Net change in unrealized gains (losses) on investments		10,244,827
Net realized and unrealized gains (losses) on investments		6,880,242
Net increase in net assets resulting from operations	$	27,178,312

The accompanying notes are an integral part of these financial statements.

Statement of changes in net assets Wells Fargo Multi-Sector Income Fund 21

	Six months ended April 30, 2017 (unaudited)			Year ended October 31, 2016
Operations
Net investment income	$	20,298,070		$	45,426,982
Net realized losses on investments		(3,364,585	)		(11,124,183	)
Net change in unrealized gains (losses) on investments		10,244,827			24,589,506
Net increase in net assets resulting from operations		27,178,312			58,892,305
Distributions to shareholders from
Net investment income		(24,221,422	)		(40,758,130	)
Tax basis return of capital		0			(6,993,269	)
Total distributions to shareholders		(24,221,422	)		(47,751,399	)
Capital share transactions
Cost of shares repurchased		(729,188	)		(11,526,575	)
Net decrease in net assets resulting from capital share transactions		(729,188	)		(11,526,575	)
Total increase (decrease) in net assets		2,227,702			(385,669	)
Net assets
Beginning of period		590,840,119			591,225,788
End of period	$	593,067,821		$	590,840,119
Overdistributed net investment income	$	(7,877,606	)	$	(3,954,254	)

The accompanying notes are an integral part of these financial statements.

22 Wells Fargo Multi-Sector Income Fund Statement of cash flows—six months ended April 30, 2017 (unaudited)

Cash flows from operating activities:
Net increase in net assets resulting from operations	$	27,178,312
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
Purchase of investment securities		(244,870,965	)
Proceeds from the sale of investment securities		292,344,004
Paydowns		6,627,013
Amortization		(700,724	)
Purchase of short-term investment securities, net		(7,254,194	)
Increase in receivable for investments sold		(5,409,547	)
Increase in principal paydown receivable		(543	)
Decrease in receivable for interest		1,718,303
Decrease in prepaid expenses and other assets		4,079
Decrease in payable for investments purchased		(6,060,058	)
Decrease in advisory fee payable		(14,860	)
Decrease in administration fee payable		(1,351	)
Increase in accrued expenses and other liabilities		733,084
Litigation payments received		3,276
Net realized losses on investments		3,364,585
Net change in unrealized gains (losses) on investments		(10,244,827	)
Net cash provided by operating activities		57,415,587
Cash flows from financing activities:
Decrease in secured borrowing payable		(33,000,000	)
Cost of shares repurchased		(1,714,693	)
Cash distributions paid		(23,725,497	)
Net cash used in financing activities		(58,440,190	)
Net decrease in cash		(1,024,603	)
Cash (including foreign currency):
Beginning of period	$	2,025,234
End of period	$	1,000,631
Supplemental cash disclosure
Cash paid for interest	$	1,526,189

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Multi-Sector Income Fund 23

(For a share outstanding throughout each period)

	Six months ended April 30, 2017 (unaudited)			Year ended October 31
				2016			2015			2014			2013			2012
Net asset value, beginning of period		$14.35			$14.06			$16.10			$16.40			$17.01			$16.16
Net investment income		0.49			1.08			1.10	1		1.14	1		1.18			1.16
Net realized and unrealized gains (losses) on investments		0.17			0.33			(1.98	)		(0.24	)		(0.59	)		0.89
Total from investment operations		0.66			1.41			(0.88	)		0.90			0.59			2.05
Distributions to shareholders from
Net investment income		(0.59	)		(0.97	)		(0.87	)		(0.91	)		(1.20	)		(1.20	)
Tax basis return of capital		0.00			(0.17	)		(0.29	)		(0.29	)		0.00			0.00
Total distributions to shareholders		(0.59	)		(1.14	)		(1.16	)		(1.20	)		(1.20	)		(1.20	)
Anti-dilutive effect of shares repurchased		0.01			0.02			0.00			0.00			0.00			0.00
Net asset value, end of period		$14.43			$14.35			$14.06			$16.10			$16.40			$17.01
Market value, end of period		$13.61			$12.66			$12.02			$14.19			$14.47			$16.54
Total return based on market value2		12.42	%		15.66	%		(7.34	)%		6.55	%		(5.44	)%		19.33	%
Ratios to average net assets (annualized)
Net expenses3		1.77	%		1.39	%		1.24	%		1.21	%		1.24	%		1.24	%
Net investment income3		6.99	%		7.94	%		7.33	%		6.95	%		7.04	%		7.13	%
Supplemental data
Portfolio turnover rate		26	%		29	%		31	%		41	%		40	%		78	%
Net assets, end of period (000s omitted)		$593,068			$590,840			$591,226			$677,004			$689,573			$715,368
Borrowings outstanding, end of period (000s omitted)		$187,000			$220,000			$230,000			$230,000			$230,000			$230,000
Asset coverage per $1,000 of borrowing, end of period		$4,171			$3,686			$3,570			$3,944			$3,998			$4,110

¹ Calculated based upon average shares outstanding

² Total return is calculated assuming a purchase of common stock on the first day and sale on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of these calculations to be reinvested at prices obtained under the Fund’s Automatic Dividend Reinvestment Plan. Total return does not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares. Returns for periods of less than one year are not annualized.

³  Ratios include interest expense relating to interest associated with borrowings and/or leverage transactions as follows:

Six months ended April 30, 2017 (unaudited)	0.55	%
Year ended October 31, 2016	0.44	%
Year ended October 31, 2015	0.24	%
Year ended October 31, 2014	0.07	%
Year ended October 31, 2013	0.07	%
Year ended October 31, 2012	0.11	%

The accompanying notes are an integral part of these financial statements.

24 Wells Fargo Multi-Sector Income Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Multi-Sector Income Fund (the “Fund”) was organized as a statutory trust under the laws of the state of Delaware on April 10, 2003 and is registered as a diversified closed-end management investment company under the Investment Company Act of 1940, as amended. As an investment company, the Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.

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

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market that day, 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 (“Funds Management”).

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 adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. 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

Notes to financial statements (unaudited) Wells Fargo Multi-Sector Income Fund 25

foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

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 or losses 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.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Dividend income is recognized on the ex-dividend date.

Income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

26 Wells Fargo Multi-Sector Income Fund Notes to financial statements (unaudited)

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of October 31, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

	No expiration
2018	Short-term	Long-term
$86,701,155	$2,682,399	$10,251,593

3. FAIR VALUATION MEASUREMENTS

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

∎ Level 1 – quoted prices in active markets for identical securities

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

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

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

Notes to financial statements (unaudited) Wells Fargo Multi-Sector Income Fund 27

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of April 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	9,114,302	$	0	$	9,114,302
Asset-backed securities		0		1,260,530		0		1,260,530
Common stocks
Energy		0		406,302		0		406,302
Materials		763		0		0		763
Utilities		4,894,256		0		0		4,894,256
Corporate bonds and notes		0		397,306,030		0		397,306,030
Foreign corporate bonds and notes		0		10,953,353		0		10,953,353
Foreign government bonds		0		121,537,083		0		121,537,083
Loans		0		79,117,365		23,097,699		102,215,064
Municipal obligations		0		44,818		0		44,818
Non-agency mortgage-backed securities		0		24,098,948		0		24,098,948
Rights
Utilities		0		409,219		0		409,219
Yankee corporate bonds and notes		0		54,854,391		7,293		54,861,684
Short-term investments
Investment companies		40,658,824		0		0		40,658,824
Total assets	$	45,553,843	$	699,102,341	$	23,104,992	$	767,761,176

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At April 30, 2017, the Fund had no material transfers between Level 1 and Level 2.

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

	Loans			Yankee corporate bonds and notes			Total
Balance as of October 31, 2016	$	5,626,538		$	7,293		$	5,633,831
Accrued discounts (premiums)		9,227			17,712			26,939
Realized gains (losses)		(8,542	)		0			(8,542	)
Change in unrealized gains (losses)		209,557			(17,712	)		191,845
Purchases		19,869,222			0			19,869,222
Sales		(3,676,688	)		0			(3,676,688	)
Transfers into Level 3		5,077,780			0			5,077,780
Transfers out of Level 3		(4,009,395	)		0			(4,009,395	)
Balance as of April 30, 2017	$	23,097,699		$	7,293		$	23,104,992
Change in unrealized gains (losses) relating to securities still held at April 30, 2017	$	168,019		$	(17,712	)	$	150,307

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

The yankee corporate bonds and notes obligations in the Level 3 table represents two positions which were valued based on an analysis of the expected final distribution available to bondholders from asset sales.

28 Wells Fargo Multi-Sector Income Fund Notes to financial statements (unaudited)

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the adviser to the Fund and is entitled to receive a fee at an annual rate of 0.55% of the Fund’s average daily total assets. Total assets consist of net assets of the Fund plus borrowings or other leverage for investment purposes to the extent excluded in calculating net assets.

Funds Management has retained the services of certain subadvisers to provide daily portfolio management to the Fund. The fees for subadvisory services are borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate of 0.30% of the Fund’s average daily total assets. First International Advisors, LLC, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is also a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate of 0.10% of the Fund’s average daily total assets.

Administration fee

Funds Management also serves as the administrator to the Fund, providing the Fund with a wide range of administrative services necessary to the operation of the Fund. Funds Management is entitled to receive an annual administration fee from the Fund equal to 0.05% of the Fund’s average daily total assets.

During the six months ended April 30, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $20,366 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $9,019 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

5. CAPITAL SHARE TRANSACTIONS

The Fund has authorized capital of 100,000,000 shares with no par value. For the six months ended April 30, 2017 and the year ended October 31, 2016, the Fund did not issue any shares.

On December 17, 2015, the Fund announced an open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund was able to repurchase up to 10% of its outstanding shares within one year of December 17, 2015. The Fund’s Board of Trustees had delegated to Funds Management full discretion to administer the Buyback Program including the determination of the amount and timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations. The Buyback Program ended at the close of business on December 16, 2016. During the six months ended April 30, 2017, the Fund purchased 57,556 of its shares on the open market at a total cost of $729,188 (weighted average price per share of $12.65). The weighted average discount of these repurchased shares was 11.60%.

6. BORROWINGS

The Fund has borrowed $187 million through a revolving credit facility administered by a major financial institution (the “Facility”). The Facility has a commitment amount of $230 million with no specific contract expiration date but the Facility can be terminated upon 180 days’ notice. The Fund is charged interest at London Interbank Offered Rate (LIBOR) plus 0.70% and a commitment fee of 0.30% of the average daily unutilized amount of the commitment which may be waived if the amount drawn on the Facility is over 75% of the committed amount.

During the six months ended April 30, 2017, the Fund had average borrowings outstanding in the amount of $219,456,044 and paid interest in the amount of $1,591,897 (representing 0.55% of the Fund’s average daily net assets) at a weighted average interest rate of 0.73%.

7. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended April 30, 2017 were $197,526,277 and $202,475,688, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

As of April 30, 2017, the Fund had unfunded term loan commitments of $1,264,480.

Notes to financial statements (unaudited) Wells Fargo Multi-Sector Income Fund 29

8. INDEMNIFICATION

Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

9. NEW ACCOUNTING PRONOUNCEMENTS

In August 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. Management is currently assessing the potential impact on the financial statements that may result from adopting this ASU. This ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those financial years, with early adoption permitted.

In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a Consensus of the Emerging Issues Task Force), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts described as restricted cash and restricted cash equivalents should be included with the cash and cash equivalents in reconciling the beginning and end of period total amounts shown on the statement of cash flows. Management is currently assessing the potential impact on the financial statements that may result from adopting this ASU. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017.

In December 2016, FASB issued ASU No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

10. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

11. SUBSEQUENT DISTRIBUTIONS

The Fund declared the following distributions to shareholders:

Declaration date	Record date	Payable date	Per share amount
April 28, 2017	May 18, 2017	June 1, 2017	$0.10581
May 17, 2017	June 14, 2017	July 3, 2017	0.10633

These distributions are not reflected in the accompanying financial statements.

12. SUBSEQUENT EVENT

On May 11, 2017, the Fund’s tender offer to purchase up to 15% of its outstanding common shares expired. As result of the tender offer, 18,987,662 common shares, or approximately 46% of the Fund’s common shares outstanding, were tendered. Because the total number of shares tendered exceeded the number of shares offered to purchase, all tendered shares were subject to proration in accordance with the terms of the offer to purchase. The Fund accepted 6,165,826 shares for cash payment at a price equal to 98% of the Fund’s net asset value per share effective as of the close of the regular trading session of the NYSE on May 12, 2017. Following the purchase of the tendered shares, the Fund had approximately 34,939,684 common shares outstanding.

30 Wells Fargo Multi-Sector Income Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

ANNUAL MEETING OF SHAREHOLDERS

On February 6, 2017, an Annual Meeting of Shareholders for the Fund was held to consider the following proposal. The results of the proposal are indicated below.

Proposal 1 – Election of trustees:

Shares voted “For”	Isaiah Harris, Jr.	35,163,701
Shares voted “Withhold”		1,075,104
Shares voted “For”	David F. Larcker	35,178,895
Shares voted “Withhold”		1,059,910
Shares voted “For”	Olivia S. Mitchell	35,220,287
Shares voted “Withhold”		1,018,518

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Multi-Sector Income Fund 31

BOARD OF TRUSTEES AND OFFICERS

The following table provides basic information about the Board of Trustees (the “Trustees”) and Officers of the Fund. Each of the Trustees and Officers¹ listed below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust, and four closed-end funds, including the Fund (collectively the “Fund Complex”). The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. The Board of Trustees is classified into three classes of which one is elected annually. Each Trustee serves a three-year term concurrent with the class from which the Trustee is elected. Each Officer serves an indefinite term.

Independent Trustees

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer	Current other public company or investment company directorships
Class I - Non-Interested Trustees to serve until 2020 Annual Meeting of Shareholders
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2010	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2010	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2010	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Class II - Non-Interested Trustees to serve until 2018 Annual Meeting of Shareholders
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Board member of the Forté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. Mr. Ebsworth is a CFA® charterholder.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust

32 Wells Fargo Multi-Sector Income Fund Other information (unaudited)

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer	Current other public company or investment company directorships
Judith M. Johnson (Born 1949)	Trustee, since 2010; Audit Committee Chairman, since 2010	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Class III - Non-Interested Trustees to serve until 2019 Annual Meeting of Shareholders
Peter G. Gordon* (Born 1942)	Trustee, since 2010; Chairman, since 2010	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 2010; Vice Chairman, since 2017	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2003	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2010; Chief Legal Officer, since 2010	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹  Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

Automatic dividend reinvestment plan Wells Fargo Multi-Sector Income Fund 33

AUTOMATIC DIVIDEND REINVESTMENT PLAN

All common shareholders are eligible to participate in the Automatic Dividend Reinvestment Plan (“the Plan”). Pursuant

to the Plan, unless a common shareholder is ineligible or elects otherwise, all cash dividends and capital gains distributions are automatically reinvested by Computershare Trust Company, N.A., as agent for shareholders in administering the Plan (“Plan Agent”), in additional common shares of the Fund. Whenever the Fund declares an ordinary income dividend or a capital gain dividend (collectively referred to as “dividends”) payable either in shares or in cash, nonparticipants in the Plan will receive cash, and participants in the Plan will receive the equivalent in common shares. The shares are acquired by the Plan Agent for the participant’s account, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund (“newly issued common shares”) or (ii) by purchase of outstanding common shares on the open-market (open-market purchases) on the NYSE Amex or elsewhere. If, on the payment date for any dividend or distribution, the net asset value per share of the common shares is equal to or less than the market price per common share plus estimated brokerage commissions (“market premium”), the Plan Agent will invest the amount of such dividend or distribution in newly issued shares on behalf of the participant. The number of newly issued common shares to be credited to the participant’s account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current market price per share on the date of issuance may not exceed 5%. If on the dividend payment date the net asset value per share is greater than the market value (“market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participant in open-market purchases. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open-market purchases in connection with the reinvestment of dividends. The automatic reinvestment of dividends and distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 505000, Louisville, Kentucky 40233 or by calling 1-800-730-6001.

34 Wells Fargo Multi-Sector Income Fund List of Abbreviations

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

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Transfer Agent, Registrar, Shareholder Servicing

Agent & Dividend Disbursing Agent

Computershare Trust Company, N.A.

P.O. Box 505000

Louisville, Kentucky 40233

1-800-730-6001

Website: wellsfargofunds.com

Wells Fargo Funds Management, LLC, is a subsidiary of Wells Fargo & Company and is an affiliate of Wells Fargo & Company’s broker/dealer subsidiaries. Certain material contained in this report may be considered marketing material and has been reviewed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

303211 06-17 SMSI/SAR159 04-17

ITEM 2. CODE OF ETHICS

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

Wells Fargo Multi-Sector Income Fund included a Summary Portfolio of Investments under Item 1. A Portfolio of Investments for Wells Fargo Multi-Sector Income Fund is filed under this Item.

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 1.54%
FHLMC ±		3.77	%		9-1-2032	$	1,097,548	$	1,143,080
FHLMC		8.50			7-1-2028		43,903		52,648
FHLMC Series 1383 ±		2.89			2-1-2037		310,187		328,323
FHLMC Series 196 Class A ±		1.79			12-15-2021		16,708		16,847
FHLMC Series 2011-K16 Class B 144A±		4.75			11-25-2046		1,000,000		1,078,615
FHLMC Series 2011-K701 Class B 144A±		4.29			7-25-2048		165,000		166,619
FHLMC Series 2012-K17 Class B 144A±		4.49			12-25-2044		675,000		719,377
FHLMC Series 2012-K18 Class B 144A±		4.40			1-25-2045		810,000		860,927
FHLMC Series 2012-K706 Class B 144A±		4.17			11-25-2044		500,000		512,180
FHLMC Series 2012-K706 Class C 144A±		4.17			11-25-2044		805,000		821,779
FHLMC Series 2012-K707 Class B 144A±		4.02			1-25-2047		930,000		951,261
FHLMC Series 2012-K711 Class B 144A±		3.68			8-25-2045		264,000		269,932
FHLMC Series 2013-K30 Class B 144A±		3.56			6-25-2045		700,000		718,407
FHLMC Series 2390 Class FD ±		1.44			12-15-2031		20,929		20,960
FHLMC Series 2567 Class FH ±		1.39			2-15-2033		64,380		64,431
FHLMC Series K007 Class X1 ±(c)		1.09			4-25-2020		787,821		20,716
FHLMC Series K016 Class X1 ±(c)		1.54			10-25-2021		369,302		20,954
FHLMC Series K020 Class X1 ±(c)		1.44			5-25-2022		6,551,656		391,062
FNMA ±		2.95			9-1-2037		483,494		509,545
FNMA		6.00			4-1-2033		62,830		65,264
FNMA		7.50			2-1-2030		27,169		27,411
FNMA		7.50			9-1-2030		34,803		35,288
FNMA Series 1996-46 Class FA ±		1.49			8-25-2021		9,434		9,443
FNMA Series 1997-20 Class IO ±(c)		1.84			3-25-2027		771,328		22,544
FNMA Series 2001-25 Class Z		6.00			6-25-2031		121,584		135,367
FNMA Series 2001-35 Class F ±		1.59			7-25-2031		5,614		5,701
FNMA Series 2001-57 Class F ±		1.49			6-25-2031		5,652		5,683
FNMA Series 2002-77 Class FH ±		1.39			12-18-2032		40,933		40,961
FNMA Series 2002-97 Class FR ±		1.54			1-25-2033		9,698		9,825
FNMA Series G91-16 Class F ±		1.44			6-25-2021		8,690		8,736
FNMA Series G92-17 Class F ±		2.04			3-25-2022		38,312		38,874
GNMA		6.50			6-15-2028		27,194		30,492
GNMA		7.25			8-15-2017		426		426
GNMA		7.25			9-15-2017		2,046		2,054
GNMA		7.25			10-15-2017		1,472		1,477
GNMA		7.25			1-15-2018		1,880		1,885
GNMA		7.25			2-15-2018		2,612		2,627
GNMA		7.25			5-15-2018		2,574		2,581
Total Agency Securities (Cost $8,603,236)									9,114,302
Asset-Backed Securities: 0.21%
CVS Pass-Through Trust Series T		6.04			12-10-2028		513,448		582,819
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2 ±		1.99			5-20-2030		676,247		677,711
Total Asset-Backed Securities (Cost $1,252,668)									1,260,530

2 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name						Shares		Value
Common Stocks: 0.89%
Energy: 0.07%
Oil, Gas & Consumable Fuels: 0.07%
Swift Energy Company †(i)							16,859	$	406,302
Materials: 0.00%
Chemicals: 0.00%
LyondellBasell Industries NV Class A							9		763
Utilities: 0.82%
Electric Utilities: 0.82%
Vistra Energy Corporation							327,375		4,894,256
Total Common Stocks (Cost $23,474,603)									5,301,321
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 66.99%
Consumer Discretionary: 11.89%
Auto Components: 1.03%
Allison Transmission Incorporated 144A		5.00	%		10-1-2024	$	2,950,000		3,005,313
Cooper Tire & Rubber Company (i)		7.63			3-15-2027		1,710,000		1,928,025
Cooper Tire & Rubber Company		8.00			12-15-2019		550,000		613,250
Goodyear Tire & Rubber Company		8.75			8-15-2020		468,000		555,750
									6,102,338
Distributors: 0.15%
LKQ Corporation		4.75			5-15-2023		900,000		904,500
Diversified Consumer Services: 0.89%
Service Corporation International		7.50			4-1-2027		3,400,000		3,969,500
Service Corporation International		7.63			10-1-2018		680,000		731,850
Service Corporation International		8.00			11-15-2021		475,000		559,313
									5,260,663
Food Products: 0.06%
Pinnacle Foods Incorporated 144A		5.63			5-1-2024		325,000		335,563
Hotels, Restaurants & Leisure: 1.99%
Brinker International Incorporated 144A		5.00			10-1-2024		875,000		866,250
CCM Merger Incorporated 144A		6.00			3-15-2022		2,450,000		2,529,625
Greektown Holdings LLC 144A		8.88			3-15-2019		7,625,000		7,963,398
Speedway Motorsports Incorporated		5.13			2-1-2023		425,000		429,250
									11,788,523
Internet & Direct Marketing Retail: 0.14%
Expedia Incorporated		5.95			8-15-2020		750,000		824,122
Leisure Products: 0.01%
Vista Outdoor Incorporated		5.88			10-1-2023		50,000		49,750

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Media: 6.23%
Altice US Finance I Corporation 144A		5.38	%		7-15-2023	$	1,395,000	$	1,456,031
Altice US Finance I Corporation 144A		5.50			5-15-2026		1,275,000		1,318,031
AMC Entertainment Holdings Incorporated 144A		5.88			11-15-2026		925,000		941,766
Cablevision Systems Corporation		8.63			9-15-2017		582,000		598,005
CBS Radio Incorporated 144A		7.25			11-1-2024		45,000		48,938
CCO Holdings LLC		5.13			2-15-2023		300,000		312,000
CCO Holdings LLC 144A		5.13			5-1-2023		1,780,000		1,857,875
CCO Holdings LLC 144A		5.13			5-1-2027		450,000		459,000
CCO Holdings LLC		5.25			9-30-2022		1,250,000		1,296,875
CCO Holdings LLC 144A		5.38			5-1-2025		4,150,000		4,326,375
CCO Holdings LLC 144A		5.50			5-1-2026		215,000		225,617
CCO Holdings LLC 144A		5.75			2-15-2026		3,375,000		3,584,858
CCO Holdings LLC 144A		5.88			4-1-2024		1,250,000		1,337,500
Cequel Communications Holdings I LLC 144A		7.75			7-15-2025		2,030,000		2,263,450
Cinemark USA Incorporated		4.88			6-1-2023		325,000		329,875
CSC Holdings LLC		7.88			2-15-2018		1,000,000		1,042,500
CSC Holdings LLC		8.63			2-15-2019		383,000		421,894
EMI Music Publishing 144A		7.63			6-15-2024		525,000		580,125
Gray Television Incorporated 144A		5.13			10-15-2024		1,450,000		1,453,625
Gray Television Incorporated 144A		5.88			7-15-2026		3,875,000		4,010,625
Interpublic Group of Companies		4.00			3-15-2022		750,000		784,868
Lamar Media Corporation		5.88			2-1-2022		690,000		715,875
Live Nation Entertainment Incorporated 144A		4.88			11-1-2024		1,400,000		1,410,500
National CineMedia LLC		5.75			8-15-2026		925,000		943,500
National CineMedia LLC		6.00			4-15-2022		1,725,000		1,772,438
Nexstar Broadcasting Group Incorporated 144A		5.63			8-1-2024		850,000		871,250
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		950,000		993,339
Outfront Media Capital Corporation		5.63			2-15-2024		20,000		21,000
Outfront Media Capital Corporation		5.88			3-15-2025		775,000		819,563
Time Warner Cable Incorporated		4.00			1-15-2022		750,000		786,672
									36,983,970
Multiline Retail: 0.10%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		600,000		598,355
Specialty Retail: 1.21%
Advance Auto Parts Incorporated		4.50			1-15-2022		600,000		639,587
Asbury Automotive Group Incorporated		6.00			12-15-2024		1,175,000		1,213,188
Penske Auto Group Incorporated		5.38			12-1-2024		2,150,000		2,166,125
Penske Auto Group Incorporated		5.75			10-1-2022		1,155,000		1,195,425
Sonic Automotive Incorporated		5.00			5-15-2023		1,224,000		1,173,510
Sonic Automotive Incorporated 144A		6.13			3-15-2027		775,000		780,813
									7,168,648
Textiles, Apparel & Luxury Goods: 0.08%
Wolverine World Wide Company 144A		5.00			9-1-2026		500,000		485,000

4 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Consumer Staples: 1.58%
Beverages: 0.22%
Anheuser-Busch InBev SA		3.75	%		1-15-2022	$	600,000	$	631,747
Cott Beverages Incorporated 144A		5.50			4-1-2025		675,000		686,813
									1,318,560
Food Products: 1.19%
B&G Foods Incorporated		4.63			6-1-2021		300,000		305,520
B&G Foods Incorporated		5.25			4-1-2025		1,050,000		1,074,969
Darling Ingredients Incorporated		5.38			1-15-2022		180,000		186,525
Kraft Foods Group Incorporated		3.50			6-6-2022		750,000		775,216
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		50,000		51,625
Lamb Weston Holdings Incorporated 144A		4.88			11-1-2026		50,000		51,563
Pilgrim’s Pride Corporation 144A		5.75			3-15-2025		1,130,000		1,175,200
Pinnacle Foods Incorporated		5.88			1-15-2024		75,000		79,969
Post Holdings Incorporated 144A		5.00			8-15-2026		700,000		696,500
Post Holdings Incorporated 144A		5.50			3-1-2025		525,000		548,625
Post Holdings Incorporated 144A		5.75			3-1-2027		525,000		544,031
Post Holdings Incorporated 144A		8.00			7-15-2025		900,000		1,023,750
Prestige Brands Incorporated 144A		6.38			3-1-2024		130,000		139,100
US Foods Incorporated 144A		5.88			6-15-2024		410,000		428,450
									7,081,043
Household Products: 0.05%
Central Garden & Pet Company		6.13			11-15-2023		250,000		266,875
Tobacco: 0.12%
Reynolds American Incorporated		6.88			5-1-2020		650,000		734,591
Energy: 17.21%
Energy Equipment & Services: 5.40%
Bristow Group Incorporated		6.25			10-15-2022		3,905,000		3,221,625
Era Group Incorporated		7.75			12-15-2022		2,350,000		2,232,500
Hilcorp Energy Company 144A		5.00			12-1-2024		1,450,000		1,359,375
Hilcorp Energy Company 144A		5.75			10-1-2025		1,525,000		1,479,250
Hornbeck Offshore Services Incorporated		1.50			9-1-2019		4,750,000		3,164,688
Hornbeck Offshore Services Incorporated		5.00			3-1-2021		1,750,000		1,076,250
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		1,860,000		1,199,700
NGPL PipeCo LLC 144A		7.12			12-15-2017		2,060,000		2,115,363
NGPL PipeCo LLC 144A		7.77			12-15-2037		9,060,000		10,419,000
NGPL PipeCo LLC 144A		9.63			6-1-2019		435,000		447,398
PHI Incorporated		5.25			3-15-2019		5,675,000		5,334,500
									32,049,649
Oil, Gas & Consumable Fuels: 11.81%
Continental Resources Incorporated		3.80			6-1-2024		350,000		329,000
Continental Resources Incorporated		5.00			9-15-2022		700,000		706,125
Denbury Resources Incorporated		4.63			7-15-2023		3,475,000		2,380,375
Denbury Resources Incorporated		6.38			8-15-2021		1,460,000		1,157,050
El Paso LLC		6.50			4-1-2020		750,000		831,002

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Enable Midstream Partner LP		2.40	%		5-15-2019	$	2,350,000	$	2,331,160
Enable Midstream Partner LP		3.90			5-15-2024		1,750,000		1,719,984
Enable Midstream Partner LP		4.40			3-15-2027		775,000		773,491
Enable Midstream Partner LP		5.00			5-15-2044		275,000		253,242
Enable Oklahoma Intrastate Transmission LLC 144A		6.25			3-15-2020		250,000		269,118
Energy Transfer Partners LP		5.20			2-1-2022		750,000		811,944
EnLink Midstream LLC		4.15			6-1-2025		2,950,000		2,963,425
EnLink Midstream LLC		4.40			4-1-2024		3,200,000		3,282,928
Exterran Partners LP		6.00			4-1-2021		3,100,000		3,107,750
Gulfport Energy Corporation 144A		6.00			10-15-2024		1,000,000		985,000
Gulfport Energy Corporation 144A		6.38			5-15-2025		800,000		797,000
Gulfport Energy Corporation		6.63			5-1-2023		1,900,000		1,923,750
Kinder Morgan Energy Partners LP		3.95			9-1-2022		750,000		773,777
Kinder Morgan Incorporated		6.50			9-15-2020		285,000		318,769
Kinder Morgan Incorporated (i)		7.42			2-15-2037		800,000		897,218
Matador Resources Company 144A		6.88			4-15-2023		300,000		316,500
Murphy Oil Corporation		4.70			12-1-2022		850,000		830,875
Murphy Oil Corporation		6.88			8-15-2024		850,000		905,250
Nabors Industries Incorporated		4.63			9-15-2021		750,000		757,500
Nabors Industries Incorporated 144A		5.50			1-15-2023		250,000		253,125
Overseas Shipholding Group Incorporated		8.13			3-30-2018		2,275,000		2,366,000
PDC Energy Incorporated 144A		6.13			9-15-2024		575,000		589,375
Phillips 66		4.30			4-1-2022		625,000		674,450
Pioneer Natural Resources Company		3.95			7-15-2022		750,000		791,022
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		4,450,000		4,757,050
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		3,524,000		3,766,275
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		1,465,000		1,618,825
Rose Rock Midstream LP		5.63			7-15-2022		1,200,000		1,197,000
Rose Rock Midstream LP		5.63			11-15-2023		825,000		814,688
Sabine Oil & Gas Corporation (a)(i)(s)		7.25			6-15-2019		520,000		0
Sabine Oil & Gas Corporation (a)(i)(s)		7.50			9-15-2020		3,500,000		0
Sabine Pass Liquefaction LLC		5.63			2-1-2021		1,375,000		1,495,346
Sabine Pass Liquefaction LLC		5.63			4-15-2023		1,710,000		1,885,839
Sabine Pass Liquefaction LLC		5.63			3-1-2025		460,000		502,868
Sabine Pass Liquefaction LLC		5.75			5-15-2024		1,625,000		1,796,226
Sabine Pass Liquefaction LLC 144A		5.88			6-30-2026		625,000		696,928
Sabine Pass Liquefaction LLC		6.25			3-15-2022		3,550,000		3,982,784
SemGroup Corporation 144A		6.38			3-15-2025		3,425,000		3,442,125
Southern Star Central Corporation 144A		5.13			7-15-2022		50,000		50,500
Southwestern Energy Company		4.10			3-15-2022		425,000		397,375
Southwestern Energy Company		6.70			1-23-2025		650,000		646,750
Summit Midstream Holdings LLC		5.75			4-15-2025		225,000		227,813
Tallgrass Energy Partners LP 144A		5.50			9-15-2024		5,600,000		5,628,000
Tesoro Logistics LP		6.13			10-15-2021		225,000		234,844
Tesoro Logistics LP		6.38			5-1-2024		450,000		491,625
Ultra Resources Incorporated 144A		6.88			4-15-2022		600,000		606,750
Ultra Resources Incorporated 144A		7.13			4-15-2025		505,000		500,268
Western Gas Partners LP		4.00			7-1-2022		175,000		179,814
Western Gas Partners LP		5.38			6-1-2021		225,000		244,046
Williams Partners LP		3.35			8-15-2022		750,000		755,328
									70,015,272

6 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Financials: 8.63%
Banks: 0.73%
Bank of America Corporation		5.70	%		1-24-2022	$	250,000	$	281,461
CIT Group Incorporated		5.25			3-15-2018		100,000		103,180
CIT Group Incorporated 144A		5.50			2-15-2019		426,000		449,963
CIT Group Incorporated 144A		6.63			4-1-2018		550,000		575,025
Citigroup Incorporated		4.50			1-14-2022		250,000		269,633
Citigroup Incorporated		6.00			8-15-2017		650,000		658,183
City National Bank		5.38			7-15-2022		500,000		556,572
HSBC Bank USA		6.00			8-9-2017		650,000		657,909
JPMorgan Chase & Company		3.38			5-1-2023		750,000		755,105
									4,307,031
Capital Markets: 0.33%
ACE Securities Corporation ±		3.62			6-25-2033		312,516		308,156
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		750,000		838,389
Goldman Sachs Group Incorporated		5.75			1-24-2022		750,000		846,281
									1,992,826
Consumer Finance: 3.18%
Ally Financial Incorporated		8.00			12-31-2018		780,000		844,350
Ally Financial Incorporated		8.00			3-15-2020		755,000		852,206
Discover Financial Services		5.20			4-27-2022		750,000		814,537
Ford Motor Credit Company LLC		5.00			5-15-2018		650,000		670,136
General Motors Financial Company Incorporated		3.70			5-9-2023		750,000		753,959
Navient Corporation		8.00			3-25-2020		1,930,000		2,123,000
Navient Corporation		8.45			6-15-2018		1,675,000		1,792,250
OneMain Financial Group LLC 144A		7.25			12-15-2021		4,175,000		4,342,459
Springleaf Finance Corporation		6.00			6-1-2020		825,000		844,594
Springleaf Finance Corporation		6.50			9-15-2017		200,000		203,250
Springleaf Finance Corporation		6.90			12-15-2017		4,550,000		4,669,438
Springleaf Finance Corporation		8.25			12-15-2020		75,000		82,178
Springleaf Finance Corporation		8.25			10-1-2023		800,000		858,000
									18,850,357
Diversified Financial Services: 2.59%
General Electric Capital Corporation		4.65			10-17-2021		187,000		206,837
Infinity Acquisition LLC 144A(i)		7.25			8-1-2022		1,735,000		1,630,900
ING US Incorporated		5.50			7-15-2022		750,000		836,795
LPL Holdings Incorporated 144A		5.75			9-15-2025		10,025,000		10,175,375
NewStar Financial Incorporated		7.25			5-1-2020		2,450,000		2,526,563
									15,376,470
Insurance: 1.80%
American International Group Incorporated		4.88			6-1-2022		750,000		818,741
Endurance Specialty Holdings Limited		7.00			7-15-2034		575,000		720,896
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		722,818
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		1,075,000		1,080,375
Hub International Limited 144A		7.88			10-1-2021		3,950,000		4,138,218

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Insurance (continued)
Liberty Mutual Group Incorporated 144A		4.95	%		5-1-2022	$	750,000	$	821,436
ProAssurance Corporation		5.30			11-15-2023		750,000		824,879
Progressive Corporation ±		6.70			6-15-2067		600,000		600,600
USIS Merger Sub Incorporated 144A		6.88			5-1-2025		225,000		228,938
W.R. Berkley Corporation		4.63			3-15-2022		650,000		700,370
									10,657,271
Health Care: 5.92%
Biotechnology: 0.13%
Amgen Incorporated		3.63			5-15-2022		750,000		783,952
Health Care Equipment & Supplies: 0.80%
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		209,000
Hill-Rom Holdings Incorporated 144A		5.00			2-15-2025		400,000		405,000
Hologic Incorporated 144A		5.25			7-15-2022		670,000		706,013
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		1,425,000		1,519,406
Surgery Center Holdings Company 144A		8.88			4-15-2021		1,800,000		1,912,500
									4,751,919
Health Care Providers & Services: 4.04%
Acadia Healthcare Company Incorporated		6.50			3-1-2024		190,000		201,400
Community Health Systems Incorporated		6.25			3-31-2023		390,000		396,825
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		831,183
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		445,000		448,338
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		525,000		544,031
Express Scripts Holding Company		3.90			2-15-2022		665,000		692,544
HCA Incorporated		6.50			2-15-2020		1,875,000		2,057,925
HealthSouth Corporation		5.75			9-15-2025		575,000		581,469
Humana Incorporated		7.20			6-15-2018		750,000		792,709
Mednax Incorporated 144A		5.25			12-1-2023		475,000		485,688
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		1,750,000		1,881,250
MPT Operating Partnership LP		5.25			8-1-2026		1,250,000		1,281,250
MPT Operating Partnership LP		6.38			2-15-2022		1,075,000		1,111,281
MPT Operating Partnership LP		6.38			3-1-2024		110,000		119,075
Select Medical Corporation		6.38			6-1-2021		4,065,000		4,156,463
TeamHealth Incorporated 144A		6.38			2-1-2025		475,000		463,719
Tenet Healthcare Corporation ±		4.63			6-15-2020		2,250,000		2,261,250
Tenet Healthcare Corporation		6.00			10-1-2020		1,475,000		1,552,438
Vizient Incorporated 144A		10.38			3-1-2024		3,550,000		4,064,750
									23,923,588
Health Care Technology: 0.35%
Change Healthcare Holdings Incorporated 144A		5.75			3-1-2025		1,800,000		1,847,250
QuintilesIMS Holdings Incorporated 144A		5.00			10-15-2026		225,000		231,188
									2,078,438
Life Sciences Tools & Services: 0.14%
Life Technologies Corporation		6.00			3-1-2020		750,000		822,034

8 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pharmaceuticals: 0.46%
Endo Finance LLC 144A		5.38	%		1-15-2023	$	375,000	$	321,563
Endo Finance LLC 144A		5.75			1-15-2022		715,000		661,375
Valeant Pharmaceuticals International Incorporated 144A		6.50			3-15-2022		325,000		332,719
Valeant Pharmaceuticals International Incorporated 144A		7.00			3-15-2024		575,000		586,500
Valeant Pharmaceuticals International Incorporated 144A		7.25			7-15-2022		75,000		60,188
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		761,377
									2,723,722
Industrials: 2.72%
Aerospace & Defense: 0.17%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		1,031,760
Airlines: 0.35%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,320,000		1,508,491
Delta Air Lines Incorporated		4.75			11-7-2021		505,677		534,121
									2,042,612
Commercial Services & Supplies: 1.62%
Advanced Disposal Services Incorporated 144A		5.63			11-15-2024		1,750,000		1,800,313
Aramark Services Incorporated		5.13			1-15-2024		595,000		627,725
Covanta Holding Corporation		5.88			3-1-2024		2,235,000		2,246,175
Covanta Holding Corporation		5.88			7-1-2025		900,000		897,750
Covanta Holding Corporation		6.38			10-1-2022		1,500,000		1,543,125
Penske Truck Leasing Company 144A		3.75			5-11-2017		750,000		750,353
Republic Services Incorporated		3.55			6-1-2022		750,000		782,579
The ServiceMaster Company LLC 144A		5.13			11-15-2024		925,000		955,063
									9,603,083
Professional Services: 0.15%
Ascent Capital Group Incorporated		4.00			7-15-2020		375,000		284,766
Verisk Analytics Incorporated		5.80			5-1-2021		530,000		588,757
									873,523
Road & Rail: 0.11%
TTX Company 144A		2.60			6-15-2020		650,000		652,557
Trading Companies & Distributors: 0.32%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		1,775,000		1,843,781
International Lease Finance Corporation 144A		7.13			9-1-2018		75,000		80,063
									1,923,844
Information Technology: 6.26%
Communications Equipment: 0.33%
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		1,100,000		1,172,875
Motorola Solutions Incorporated		3.75			5-15-2022		750,000		765,238
									1,938,113

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Electronic Equipment, Instruments & Components: 1.34%
Jabil Circuit Incorporated		8.25	%		3-15-2018	$	5,275,000	$	5,566,671
L-3 Communications Corporation		4.95			2-15-2021		750,000		807,557
Zebra Technologies Corporation		7.25			10-15-2022		1,450,000		1,567,813
									7,942,041
Internet Software & Services: 0.41%
Infor Software Parent LLC		6.50			5-15-2022		550,000		572,000
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13			5-1-2021		550,000		562,100
Zayo Group LLC 144A		5.75			1-15-2027		950,000		1,008,188
Zayo Group LLC		6.00			4-1-2023		75,000		79,688
Zayo Group LLC		6.38			5-15-2025		175,000		189,219
									2,411,195
IT Services: 0.88%
Cardtronics Incorporated		5.13			8-1-2022		460,000		469,200
Cardtronics Incorporated 144A		5.50			5-1-2025		940,000		961,150
First Data Corporation 144A		5.00			1-15-2024		750,000		767,063
First Data Corporation 144A		5.38			8-15-2023		275,000		286,000
First Data Corporation 144A		5.75			1-15-2024		320,000		332,000
Gartner Incorporated 144A		5.13			4-1-2025		2,325,000		2,406,375
									5,221,788
Semiconductors & Semiconductor Equipment: 0.38%
Micron Technology Incorporated 144A		5.25			8-1-2023		375,000		388,125
Micron Technology Incorporated 144A		5.25			1-15-2024		700,000		721,700
Micron Technology Incorporated		5.50			2-1-2025		256,000		267,520
Micron Technology Incorporated		5.88			2-15-2022		850,000		890,375
									2,267,720
Software: 0.31%
CA Incorporated		5.38			12-1-2019		750,000		808,844
CommScope Technologies Finance LLC 144A		5.00			3-15-2027		200,000		201,750
SS&C Technologies Incorporated		5.88			7-15-2023		600,000		637,500
Symantec Corporation 144A		5.00			4-15-2025		200,000		206,750
									1,854,844
Technology Hardware, Storage & Peripherals: 2.61%
Diamond 1 Finance Corporation 144A		5.88			6-15-2021		2,825,000		2,994,500
Diamond 1 Finance Corporation 144A		7.13			6-15-2024		5,400,000		5,968,766
Hewlett-Packard Company		4.05			9-15-2022		750,000		789,022
NCR Corporation		5.88			12-15-2021		230,000		240,925
NCR Corporation		6.38			12-15-2023		5,125,000		5,494,000
									15,487,213
Materials: 1.36%
Chemicals: 0.20%
Dow Chemical Company		4.13			11-15-2021		750,000		796,809
Valvoline Incorporated 144A		5.50			7-15-2024		375,000		396,563
									1,193,372

10 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Containers & Packaging: 1.16%
Ball Corporation		5.25	%		7-1-2025	$	190,000	$	205,200
Berry Plastics Corporation		5.13			7-15-2023		350,000		363,895
Berry Plastics Corporation		6.00			10-15-2022		215,000		228,438
Crown Cork & Seal Company Incorporated		7.38			12-15-2026		35,000		40,600
Crown Cork & Seal Company Incorporated (i)		7.50			12-15-2096		600,000		607,500
Owens-Brockway Glass Container Incorporated 144A		5.88			8-15-2023		425,000		454,750
Owens-Illinois Incorporated 144A		5.38			1-15-2025		575,000		599,438
Owens-Illinois Incorporated 144A		6.38			8-15-2025		2,950,000		3,208,125
Sealed Air Corporation 144A		5.13			12-1-2024		1,100,000		1,152,250
									6,860,196
Metals & Mining: 0.00%
Indalex Holdings Corporation (a)(i)(s)		11.50			2-1-2020		3,170,000		0
Real Estate: 4.37%
Equity REITs: 4.37%
Alexandria Real Estate Company		4.60			4-1-2022		650,000		692,390
American Tower Corporation		5.90			11-1-2021		650,000		731,188
DuPont Fabros Technology Incorporated LP		5.63			6-15-2023		2,975,000		3,146,063
DuPont Fabros Technology Incorporated LP		5.88			9-15-2021		4,655,000		4,852,838
Equinix Incorporated		5.38			5-15-2027		425,000		444,036
Equinix Incorporated		5.88			1-15-2026		425,000		457,938
ESH Hospitality Incorporated 144A		5.25			5-1-2025		2,275,000		2,303,438
Essex Portfolio LP		3.63			8-15-2022		750,000		773,612
Health Care REIT Incorporated		5.25			1-15-2022		650,000		715,984
Iron Mountain Incorporated 144A		4.38			6-1-2021		1,175,000		1,219,063
Iron Mountain Incorporated 144A		5.38			6-1-2026		950,000		966,625
Iron Mountain Incorporated 144A		6.00			10-1-2020		230,000		240,638
Iron Mountain Incorporated		6.00			8-15-2023		2,960,000		3,144,941
Sabra Health Care Incorporated		5.38			6-1-2023		900,000		913,500
Sabra Health Care Incorporated		5.50			2-1-2021		1,100,000		1,148,125
The Geo Group Incorporated		5.13			4-1-2023		800,000		804,000
The Geo Group Incorporated		5.88			1-15-2022		1,565,000		1,627,600
The Geo Group Incorporated		5.88			10-15-2024		840,000		858,900
The Geo Group Incorporated		6.00			4-15-2026		184,000		189,060
Ventas Realty LP		4.25			3-1-2022		650,000		687,166
									25,917,105
Telecommunication Services: 3.60%
Diversified Telecommunication Services: 1.32%
AT&T Incorporated		3.80			3-15-2022		750,000		778,439
Citizens Communications Company		7.88			1-15-2027		355,000		287,550
Frontier Communications Corporation		8.13			10-1-2018		845,000		898,869
Frontier Communications Corporation		8.50			4-15-2020		525,000		555,188
GCI Incorporated		6.75			6-1-2021		1,000,000		1,036,250
Level 3 Financing Incorporated		5.13			5-1-2023		975,000		1,000,594
Level 3 Financing Incorporated		5.25			3-15-2026		650,000		670,365
Level 3 Financing Incorporated		5.38			8-15-2022		300,000		309,810
Level 3 Financing Incorporated		5.38			1-15-2024		700,000		727,538

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Diversified Telecommunication Services (continued)
Level 3 Financing Incorporated		5.38	%		5-1-2025	$	975,000	$	1,016,438
Level 3 Financing Incorporated		5.63			2-1-2023		350,000		363,125
Level 3 Financing Incorporated		6.13			1-15-2021		175,000		180,906
									7,825,072
Wireless Telecommunication Services: 2.28%
Crown Castle Towers LLC 144A		6.11			1-15-2040		750,000		812,505
SBA Communications Corporation		4.88			7-15-2022		640,000		659,200
SBA Communications Corporation 144A		4.88			9-1-2024		500,000		504,375
Sprint Capital Corporation		6.88			11-15-2028		5,500,000		5,967,500
Sprint Capital Corporation		8.75			3-15-2032		625,000		769,138
Sprint Communications Incorporated		7.00			8-15-2020		225,000		243,844
T-Mobile USA Incorporated		4.00			4-15-2022		650,000		665,236
T-Mobile USA Incorporated		5.13			4-15-2025		425,000		447,844
T-Mobile USA Incorporated		5.38			4-15-2027		225,000		240,750
T-Mobile USA Incorporated		6.00			3-1-2023		300,000		319,407
T-Mobile USA Incorporated		6.13			1-15-2022		85,000		89,781
T-Mobile USA Incorporated		6.38			3-1-2025		825,000		901,577
T-Mobile USA Incorporated		6.50			1-15-2024		80,000		86,600
T-Mobile USA Incorporated		6.63			4-1-2023		655,000		700,031
T-Mobile USA Incorporated		6.84			4-28-2023		1,060,000		1,136,850
									13,544,638
Utilities: 3.45%
Electric Utilities: 0.14%
Great Plains Energy Incorporated		4.85			6-1-2021		750,000		803,971
Gas Utilities: 0.17%
AmeriGas Partners LP		5.75			5-20-2027		1,000,000		1,002,500
Independent Power & Renewable Electricity Producers: 2.91%
Calpine Corporation 144A		6.00			1-15-2022		515,000		538,175
NSG Holdings LLC 144A		7.75			12-15-2025		5,042,891		5,421,108
Pattern Energy Group Incorporated 144A		5.88			2-1-2024		3,675,000		3,771,469
TerraForm Power Operating LLC 144A		6.38			2-1-2023		5,425,000		5,601,313
TerraForm Power Operating LLC 144A		6.63			6-15-2025		1,850,000		1,956,375
									17,288,440
Multi-Utilities: 0.23%
Ameren Illinois Company		9.75			11-15-2018		500,000		559,298
CMS Energy Corporation		5.05			3-15-2022		750,000		826,115
									1,385,413
Total Corporate Bonds and Notes (Cost $378,205,690)									397,306,030
Foreign Corporate Bonds and Notes @: 1.85%
Consumer Discretionary: 0.11%
Internet & Direct Marketing Retail: 0.04%
Priceline Group Incorporated (EUR)		2.38			9-23-2024		200,000		233,631

12 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Media: 0.07%
Virgin Media Incorporated (GBP)		5.50	%		9-15-2024		325,000	$	441,988
Consumer Staples: 0.16%
Food Products: 0.16%
BRF SA 144A (BRL)		7.75			5-22-2018		3,100,000		937,603
Energy: 0.24%
Energy Equipment & Services: 0.02%
Senvion Holding (EUR)		6.63			11-15-2020		100,000		112,618
Oil, Gas & Consumable Fuels: 0.22%
Petroleos Mexicanos 144A (MXN)		7.19			9-12-2024		28,200,000		1,320,476
Financials: 0.98%
Banks: 0.93%
Eurofima (AUD)		6.25			12-28-2018		2,450,000		1,954,610
European Investment Bank (ZAR)		9.00			3-31-2021		17,400,000		1,349,137
KfW (AUD)		5.00			3-19-2024		1,300,000		1,099,636
Landwirtschaftliche Rentenbank (ZAR)		8.25			5-23-2022		15,000,000		1,124,123
									5,527,506
Diversified Financial Services: 0.05%
AA Bond Company Limited (GBP)		4.25			7-31-2043		200,000		277,378
Information Technology: 0.03%
Semiconductors & Semiconductor Equipment: 0.03%
ASML Holding NV (EUR)		1.38			7-7-2026		175,000		191,606
Materials: 0.05%
Chemicals: 0.05%
Albemarle Corporation (EUR)		1.88			12-8-2021		246,000		281,620
Telecommunication Services: 0.28%
Diversified Telecommunication Services: 0.03%
Verizon Communications Incorporated (EUR)		3.25			2-17-2026		150,000		187,917
Wireless Telecommunication Services: 0.25%
America Movil SAB de CV (MXN)		7.13			12-9-2024		28,850,000		1,441,010
Total Foreign Corporate Bonds and Notes (Cost $14,117,001)									10,953,353
Foreign Government Bonds @: 20.49%
Colombia (COP)		7.00			9-11-2019		18,500,000,000		6,463,901
Colombia (COP)		7.00			5-4-2022		18,650,000,000		6,656,719
Colombia (COP)		7.50			8-26-2026		22,725,000,000		8,406,983
Colombia (COP)		7.75			4-14-2021		5,250,000,000		1,919,409
Hungary (HUF)		6.75			11-24-2017		1,305,000,000		4,709,103
Indonesia (IDR)		7.88			4-15-2019		133,640,000,000		10,276,915
Indonesia (IDR)		8.38			9-15-2026		110,000,000,000		8,970,665

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Foreign Government Bonds @ (continued)
Malaysia (MYR)		4.18	%		7-15-2024		19,850,000	$	4,641,717
Malaysia (MYR)		4.23			6-30-2031		51,300,000		11,537,596
Mexico (MXN)		5.75			3-5-2026		152,000,000		7,334,256
Mexico (MXN)		8.00			11-7-2047		217,500,000		12,078,397
Mexico (MXN)		10.00			12-5-2024		62,120,000		3,851,158
Mexico (MXN)		10.00			12-5-2024		14,100,000		874,136
New Zealand (NZD)		4.50			4-15-2027		8,250,000		6,357,150
Queensland Treasury (AUD)		5.75			7-22-2024		4,100,000		3,668,924
Republic of South Africa (ZAR)		7.75			2-28-2023		103,000,000		7,580,245
Republic of South Africa (ZAR)		10.50			12-21-2026		153,500,000		12,820,465
State of New South Wales Australia (AUD)		5.00			8-20-2024		3,900,000		3,389,344
Total Foreign Government Bonds (Cost $135,837,614)									121,537,083
Loans: 17.24%
Consumer Discretionary: 5.10%
Auto Components: 0.55%
Allison Transmission Incorporated ±		2.99			9-23-2022	$	1,895,225		1,914,613
Federal-Mogul Corporation ±		4.75			4-15-2021		1,316,615		1,315,904
									3,230,517
Distributors: 0.42%
Spin Holdco Incorporated ±		4.27			11-14-2019		2,472,140		2,474,192
Food & Staples Retailing: 0.07%
TKC Holdings Incorporated ±		4.75			2-1-2023		400,000		404,000
Hotels, Restaurants & Leisure: 1.11%
CCM Merger Incorporated ±		4.24			8-8-2021		781,757		784,931
Four Seasons Holdings Incorporated ±		4.15			11-30-2023		908,383		918,275
La Quinta Intermediate Holdings LLC ±		3.91			4-14-2021		740,578		746,317
Montreign Operating Company ±		9.25			12-7-2022		3,775,000		3,841,063
Pinnacle Entertainment Incorporated ±		4.00			4-28-2023		315,259		317,859
									6,608,445
Household Products: 0.32%
Anchor Glass Container Corporation ±		4.25			12-7-2023		598,500		602,540
Anchor Glass Container Corporation ±		8.75			12-7-2024		1,300,000		1,322,750
									1,925,290
Leisure Products: 0.24%
AMF Bowling Centers Incorporated ±		6.00			8-17-2023		1,453,367		1,449,733
Media: 2.36%
Altice US Finance I Corporation ±%%<		1.00			1-25-2025		200,000		199,792
Altice US Finance I Corporation ±		3.24			7-28-2025		517,786		517,248
CBS Radio Incorporated ±		4.50			10-17-2023		1,886,404		1,898,986
Charter Communications Operating LLC ±		3.24			1-15-2024		910,800		915,126
CSC Holdings LLC ±		3.24			7-15-2025		459,375		458,966

14 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
Entercom Radio LLC ±		4.55	%		11-1-2023	$	1,073,438	$	1,079,696
Learfield Communications Incorporated ±		4.25			12-1-2023		3,491,250		3,517,434
Mission Broadcasting Incorporated ±		3.99			1-17-2024		31,974		32,254
Nexstar Broadcasting Group Incorporated ±		3.99			1-17-2024		329,799		332,685
Salem Communications Corporation ±		4.50			3-16-2020		5,150,190		5,047,186
									13,999,373
Multiline Retail: 0.03%
Doosan Infracore International Incorporated ±		4.50			5-28-2021		159,796		161,594
Consumer Staples: 0.15%
Food Products: 0.15%
B&G Foods Incorporated ±		3.24			11-2-2022		640,110		645,711
Prestige Brands Incorporated ±		3.74			1-26-2024		225,996		228,029
									873,740
Energy: 1.40%
Energy Equipment & Services: 0.77%
Hummel Station LLC ±		7.00			10-27-2022		4,929,434		4,584,373
Oil, Gas & Consumable Fuels: 0.63%
Chesapeake Energy Corporation ±		8.55			8-23-2021		450,000		485,861
Ultra Resources Incorporated ±(a)		4.00			3-23-2024		1,900,000		1,890,500
Veresen Midstream LP ±		4.50			3-31-2022		1,314,937		1,323,155
									3,699,516
Financials: 1.47%
Capital Markets: 0.07%
Russell Investments US Institutional Holdco Incorporated ±		6.75			6-1-2023		423,932		428,439
Consumer Finance: 0.04%
KAR Auction Services Incorporated ±		4.50			3-9-2023		198,000		199,485
Diversified Financial Services: 0.80%
American Beacon Advisors Incorporated ±		5.40			4-30-2022		2,476,277		2,479,373
American Beacon Advisors Incorporated ±(a)		9.92			3-3-2023		440,000		440,000
Ipreo Holdings LLC ±		4.15			8-6-2021		141,394		139,980
LPL Holdings Incorporated ±		3.77			3-10-2024		1,200,000		1,202,256
Nielsen Finance LLC ±		2.99			10-24-2023		472,625		474,397
									4,736,006
Insurance: 0.56%
Alliant Holdings I LLC ±		4.42			8-12-2022		1,396,453		1,399,860
AmWINS Group Incorporated ±		3.75			1-25-2024		374,063		373,700
Hub International Limited ±		4.03			10-2-2020		693,184		696,428
Solera Holdings Incorporated ±		4.25			3-3-2023		866,250		872,132
									3,342,120

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 1.74%
Health Care Equipment & Supplies: 0.32%
DJO Finance LLC ±		4.25	%		6-8-2020	$	560,025	$	546,584
Kinetic Concepts Incorporated ±		4.40			2-2-2024		1,336,239		1,341,664
									1,888,248
Health Care Providers & Services: 1.09%
Community Health Systems Incorporated ±		4.05			1-27-2021		909,267		903,202
MPH Acquisition Holdings LLC ±		4.90			6-7-2023		501,657		508,018
Press Ganey Holdings Incorporated ±(a)		4.25			10-21-2023		1,496,250		1,496,250
Press Ganey Holdings Incorporated ±(a)		8.25			10-21-2024		1,150,000		1,170,125
Surgery Center Holdings Incorporated ±		4.75			11-3-2020		1,099,697		1,105,195
TeamHealth Incorporated ±		3.75			2-6-2024		750,000		742,973
Vizient Incorporated ±		5.00			2-13-2023		571,904		573,694
									6,499,457
Health Care Technology: 0.13%
Alere Incorporated ±		4.25			6-18-2022		100,718		101,179
Change Healthcare Holdings Incorporated ±		3.75			3-1-2024		669,037		670,796
									771,975
Life Sciences Tools & Services: 0.08%
Inventiv Health Incorporated ±		4.80			11-9-2023		473,813		476,248
Pharmaceuticals: 0.12%
Endo Finance LLC ±%%<		5.42			4-5-2024		296,688		298,913
Valeant Pharmaceuticals International Incorporated ±		5.74			4-1-2022		402,465		404,771
									703,684
Industrials: 3.01%
Aerospace & Defense: 0.42%
TransDigm Incorporated ±		4.12			2-28-2020		2,480,049		2,485,009
Commercial Services & Supplies: 2.00%
ADS Waste Holdings Incorporated ±		3.70			11-10-2023		1,230,511		1,240,613
Advantage Sales & Marketing LLC ±		7.50			7-25-2022		1,250,000		1,189,375
Avantor Performance Materials Incorporated ±%%<		5.00			3-10-2024		1,707,995		1,724,016
Casella Waste Systems Incorporated ±(a)		3.75			10-17-2023		1,970,063		1,974,988
Columbus McKinnon Corporation ±		4.15			1-31-2024		971,910		978,597
Gates Global Limited ±		4.41			4-1-2024		612,301		615,056
GFL Environmental Incorporated ±		3.90			9-29-2023		174,125		174,851
McJunkin Red Man Corporation ±		5.00			11-8-2019		677,368		682,875
Sedgwick Claims Management Services Incorporated ±		3.75			3-1-2021		522,872		523,002
USI Incorporated ±%%<		4.15			3-30-2024		225,000		224,017
WASH Multifamily Laundry Systems LLC ±		4.25			5-14-2022		1,078,538		1,079,887
WASH Multifamily Laundry Systems LLC ±		4.25			5-14-2022		188,884		189,120
WASH Multifamily Laundry Systems LLC ±		8.00			5-12-2023		17,885		17,706
WASH Multifamily Laundry Systems LLC ±(i)		8.00			5-14-2023		102,115		101,094
Waste Industries USA Incorporated ±		3.74			2-27-2020		1,129,915		1,138,390
									11,853,587

16 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Machinery: 0.10%
Onex Wizard Acquisition Company ±		4.00	%		3-13-2022	$	609,633	$	613,273
Transportation Infrastructure: 0.49%
OSG Bulk Ships Incorporated ±		5.29			8-5-2019		71,190		69,588
OSG International Incorporated ±		5.79			8-5-2019		2,843,484		2,834,612
									2,904,200
Information Technology: 1.95%
Electronic Equipment, Instruments & Components: 0.42%
Dell Incorporated ±		3.50			9-7-2023		2,487,516		2,496,272
Internet Software & Services: 1.37%
Ancestry.com Incorporated ±		4.25			10-19-2023		2,974,950		2,998,184
Ancestry.com Incorporated ±		9.27			10-19-2024		3,325,000		3,399,813
Applied Systems Incorporated ±%%		4.16			1-25-2021		473,250		476,506
Black Knight InfoServ LLC ±(a)		3.25			5-27-2022		491,867		493,407
Infor US Incorporated ±		3.90			2-1-2022		516,658		515,449
Sophia Holding Finance LP ±		4.40			9-30-2022		146,971		146,713
Zayo Group LLC ±		3.50			1-19-2024		107,244		107,921
									8,137,993
Semiconductors & Semiconductor Equipment: 0.06%
Micron Technology Incorporated ±		3.50			4-26-2022		347,375		349,497
Software: 0.10%
SS&C Technologies Incorporated ±		3.24			7-8-2022		568,852		572,765
Materials: 0.50%
Containers & Packaging: 0.50%
Berry Plastics Corporation ±		3.51			10-1-2022		449,931		452,743
Reynolds Group Holdings Incorporated ±		3.99			2-5-2023		2,487,516		2,499,804
									2,952,547
Real Estate: 0.91%
Equity REITs: 0.53%
ESH Hospitality Incorporated ±		3.49			8-30-2023		1,293,508		1,299,432
MGM Growth Properties LLC ±		3.49			4-25-2023		321,623		322,199
The Geo Group Incorporated ±		3.20			3-22-2024		1,556,607		1,556,607
									3,178,238
Real Estate Management & Development: 0.38%
Capital Automotive LP ±		4.00			3-24-2024		1,408,665		1,419,230
Capital Automotive LP ±		7.00			3-24-2025		815,000		831,300
									2,250,530

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services: 0.91%
Diversified Telecommunication Services: 0.52%
Level 3 Financing Incorporated ±		3.24	%		2-22-2024	$	555,420	$	557,009
Telesat Canada ±		4.15			11-17-2023		2,525,396		2,543,074
									3,100,083
Wireless Telecommunication Services: 0.39%
LTS Buyer LLC ±		4.40			4-13-2020		1,834,077		1,838,993
Sprint Communications Incorporated ±		3.50			2-2-2024		450,000		450,284
									2,289,277
Utilities: 0.10%
Electric Utilities: 0.10%
Vistra Energy Corporation ±		4.25			12-14-2023		573,563		575,358
Total Loans (Cost $101,656,844)									102,215,064
Municipal Obligations: 0.01%
New York: 0.01%
Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)		5.00			4-1-2018		45,000		44,818
Total Municipal Obligations (Cost $45,000)									44,818
Non-Agency Mortgage-Backed Securities: 4.06%
Argent Securities Incorporated Series 2004-W5 Class AV3B ±		1.89			4-25-2034		57,619		56,339
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18			3-25-2033		217,210		216,702
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±		5.92			7-10-2044		1,055,230		758,696
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48			1-15-2049		195,458		195,340
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±		6.27			2-10-2051		550,000		564,041
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50			9-25-2035		245,361		256,146
Banc of America Mortgage Securities Series 2003 Class 1A1 ±		3.62			4-25-2033		266,652		248,771
Bear Stearns Asset Backed Securities Series 2002-2 Class A1 ±		1.65			10-25-2032		239,821		234,608
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±		5.89			6-11-2050		418,000		422,313
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AMFL 144A±		1.68			6-11-2050		685,000		685,062
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±		6.08			6-11-2050		100,000		101,798
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AMA ±		6.09			6-11-2050		715,000		728,442
Centex Home Equity Series 2002-A Class AF6		5.54			1-25-2032		40,893		40,838
Centex Home Equity Series 2002-D Class AF6 ±		4.66			12-25-2032		15,707		15,844
Centex Home Equity Series 2004-B Class AF6		4.69			3-25-2034		161,950		166,101
CFCRE Commercial Mortgage Trust Series 2015-RUM Class A 144A±		2.69			7-15-2030		480,000		480,979
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±		5.04			9-10-2045		1,000,000		1,052,804
Citigroup Commercial Mortgage Trust Series 2015 Class A 144A±		2.14			9-15-2027		595,000		593,966
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±		1.36			12-25-2033		36,065		35,428
Commercial Mortgage Trust Series 2007-C9 144A±		1.50			12-10-2049		463,899		463,096
Commercial Mortgage Trust Series 2012-CR2 Class C ±		5.00			8-15-2045		1,000,000		1,055,611
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.31			2-25-2034		94,854		96,356

18 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Countrywide Home Loans Series 2003-48 Class 2A2 ±		3.25	%		10-25-2033	$	76,825	$	75,052
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±		2.60			9-25-2032		553,166		513,982
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		3.29			6-25-2033		133,210		133,413
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±		3.35			3-25-2033		29,971		29,348
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±		1.65			4-25-2036		61,081		60,940
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62			7-25-2034		423,501		424,265
First Horizon Mortgage Pass-Through Series 2004-AR1 Class 1A1 ±		2.77			2-25-2034		402,817		397,310
First Horizon Mortgage Pass-Through Series 2004-AR4 Class 3A1 ±		3.01			8-25-2034		8,675		8,474
Global Mortgage Securitization Limited Series 2004-A Class A2 144A±		1.31			11-25-2032		124,662		115,298
GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5		5.26			7-25-2034		53,841		55,664
Great Wolf Trust Series 2015 Class A 144A±		2.44			5-15-2034		1,015,000		1,020,065
Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4		5.74			12-10-2049		152,013		152,461
GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±		5.95			8-10-2045		65,689		65,631
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±		1.42			8-10-2043		5,230,416		195,017
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±		2.49			5-10-2045		3,767,778		285,965
GS Mortgage Securities Trust Series 2014 Class C 144A		3.79			1-10-2031		1,000,000		991,403
GS Mortgage Securities Trust Series 2014-GSFLC Class C 144A±		3.24			7-15-2031		1,000,000		992,904
GSAA Home Equity Trust Series 2004-5 Class AF5 ±		4.63			6-25-2034		4,515		4,526
GSCCRE Commercial Mortgage Trust Series 2015-HULA Class C 144A±		3.66			8-15-2032		1,000,000		1,006,718
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		1.64			4-25-2035		6,973		6,922
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 144A±		1.29			3-25-2035		96,499		95,534
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±		5.47			6-12-2047		380,077		379,930
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL ±		1.05			6-12-2047		325,780		322,619
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±		5.46			1-15-2049		369,887		369,705
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-INN Class A 144A±		1.91			6-15-2029		521,000		521,328
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-FL7 Class A 144A±		2.24			5-15-2028		225,224		224,883
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		3.12			7-25-2034		69,327		69,610
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		3.08			7-25-2034		63,236		61,352
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		3.31			6-25-2035		221,082		224,064
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±		6.00			2-27-2037		16,974		17,134
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±		6.00			2-27-2037		49,863		49,846
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±		3.31			12-25-2033		411,824		407,471
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±		3.50			1-25-2034		16,309		15,936
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±		3.05			11-21-2034		19,648		20,051
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50			1-25-2020		28,160		28,749
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70			9-12-2049		615,638		619,816
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±		5.25			8-25-2036		40,328		41,104
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±		5.84			6-12-2050		544,119		544,895
Mesa Trust Asset Backed Certificates Series 2001-5 Class A 144A±		1.79			12-25-2031		14,231		13,279
Mid State Trust Series 11 Class A1		4.86			7-15-2038		212,983		225,557
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		1.96			1-25-2029		82,235		77,193
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±		1.71			8-15-2045		4,395,191		266,677
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		2.04			12-27-2033		460,829		448,344
Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B 144A±		5.95			8-15-2045		141,395		141,309
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±		5.60			3-15-2045		900,000		959,600
Navient SLM Student Loan Series 2005-B Class A3 ±		1.40			12-15-2023		90,000		89,375
New Century Home Equity Loan Trust Series 2004-3 Class M1 ±		1.92			11-25-2034		1,165,049		1,101,774

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ ±		1.57	%		3-25-2035	$	62,015	$	61,932
Northstar Education Finance Incorporated Series 2004-2 Class A3 ±		1.21			7-30-2018		17,535		17,486
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		3.33			5-25-2035		30,728		29,718
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±		3.63			12-26-2035		12,645		12,656
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88			2-25-2035		220,275		220,306
Residential Funding Mortgage Securities Trust Series 03-S12 Class 2A1		4.00			12-25-2032		51,263		51,260
Saxon Asset Securities Trust Series 2002-1 Class AF5		6.12			12-25-2030		133,917		134,825
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03			6-25-2033		465,341		470,374
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		1.75			4-20-2033		15,544		14,651
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±		3.40			3-25-2034		48,728		47,998
Structured Asset Securities Corporation Series 1998-2 Class A ±		1.51			2-25-2028		201,277		196,290
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		1.59			10-25-2027		56,427		55,142
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		2.13			11-25-2033		173,407		165,004
Vendee Mortgage Trust Series 2003-2 Class IO ±(c)		0.73			5-15-2033		4,726,612		128,467
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50			7-25-2034		141,792		151,065
Total Non-Agency Mortgage-Backed Securities (Cost $24,114,725)									24,098,948
				Expiration date		Shares
Rights: 0.07%
Utilities: 0.07%
Electric Utilities: 0.07%
Vistra Energy Corporation †(i)					12-31-2046		327,375		409,219
Total Rights (Cost $360,113)									409,219
				Maturity date		Principal
Yankee Corporate Bonds and Notes: 9.25%
Consumer Discretionary: 0.48%
Media: 0.48%
Grupo Televisa SAB		6.00			5-15-2018	$	750,000		780,536
Myriad International Holdings BV		6.00			7-18-2020		500,000		540,000
Myriad International Holdings BV 144A		6.38			7-28-2017		750,000		756,938
WPP Finance 2010		3.63			9-7-2022		750,000		768,838
									2,846,312
Consumer Staples: 0.27%
Beverages: 0.14%
Pernod Ricard SA 144A		4.45			1-15-2022		760,000		817,742
Tobacco: 0.13%
BAT International Finance plc 144A		3.25			6-7-2022		750,000		764,329
Energy: 1.75%
Energy Equipment & Services: 0.27%
Ensco plc		5.75			10-1-2044		2,070,000		1,507,788
Trinidad Drilling Limited 144A		6.63			2-15-2025		75,000		75,563
									1,583,351

20 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels: 1.48%
Baytex Energy Corporation 144A		5.13	%		6-1-2021	$	2,114,000	$	1,976,590
Baytex Energy Corporation 144A		5.63			6-1-2024		850,000		777,750
Griffin Coal Mining Company Limited 144A(a)(i)(s)		9.50			12-1-2099		1,685,411		6,742
Griffin Coal Mining Company Limited (a)(i)(s)		9.50			12-1-2099		137,792		551
Teekay Corporation		8.50			1-15-2020		5,625,000		5,568,750
Woodside Finance Limited 144A		8.75			3-1-2019		405,000		450,481
									8,780,864
Financials: 0.84%
Banks: 0.64%
ABN AMRO Bank NV 144A		4.80			4-18-2026		750,000		788,581
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		674,717
Corporación Andina de Fomento		4.38			6-15-2022		958,000		1,030,933
Nielsen Holding and Finance BV 144A		5.00			2-1-2025		875,000		876,094
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		415,000		431,081
Preferred Term Securities XII Limited (a)(i)(s)		0.00			12-24-2033		635,000		0
									3,801,406
Diversified Financial Services: 0.20%
GE Capital International Funding Company		2.34			11-15-2020		527,000		531,012
Tyco Electronics Group SA		3.50			2-3-2022		625,000		645,631
									1,176,643
Health Care: 1.88%
Pharmaceuticals: 1.88%
Mallinckrodt plc 144A		5.50			4-15-2025		500,000		455,000
Mallinckrodt plc 144A		5.63			10-15-2023		275,000		262,625
Perrigo Finance plc		3.90			12-15-2024		1,000,000		1,011,178
Valeant Pharmaceuticals International Incorporated 144A		5.63			12-1-2021		700,000		538,125
Valeant Pharmaceuticals International Incorporated 144A		5.88			5-15-2023		2,220,000		1,640,025
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		6,775,000		5,001,644
Valeant Pharmaceuticals International Incorporated 144A		6.38			10-15-2020		1,425,000		1,223,719
Valeant Pharmaceuticals International Incorporated 144A		6.75			8-15-2021		425,000		350,625
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		785,000		650,569
									11,133,510
Industrials: 1.14%
Building Products: 0.04%
Allegion plc		5.88			9-15-2023		210,000		224,175
Commercial Services & Supplies: 0.93%
GFL Environmental Incorporated 144A		7.88			4-1-2020		2,825,000		2,930,938
GFL Environmental Incorporated 144A		9.88			2-1-2021		500,000		537,500
Ritchie Brothers Auctioneers Incorporated 144A		5.38			1-15-2025		1,975,000		2,039,188
									5,507,626
Machinery: 0.04%
Sensata Technologies BV 144A		5.00			10-1-2025		235,000		239,994

Portfolio of investments—April 30, 2017 (unaudited) Wells Fargo Multi-Sector Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Road & Rail: 0.13%
Canadian Pacific Railway Company		4.50	%		1-15-2022	$	750,000	$	807,505
Materials: 0.84%
Containers & Packaging: 0.49%
Ardagh Packaging Finance plc 144A		4.25			9-15-2022		375,000		382,200
Ardagh Packaging Finance plc 144A		6.00			2-15-2025		1,700,000		1,757,375
Ardagh Packaging Finance plc 144A		7.25			5-15-2024		725,000		789,344
									2,928,919
Metals & Mining: 0.35%
ArcelorMittal SA		6.13			6-1-2025		275,000		308,633
Glencore Finance Canada Limited 144A		4.25			10-25-2022		750,000		781,313
Novelis Corporation 144A		6.25			8-15-2024		200,000		211,500
Vale Overseas Limited		4.38			1-11-2022		750,000		771,203
									2,072,649
Telecommunication Services: 1.94%
Diversified Telecommunication Services: 1.83%
Intelsat Jackson Holdings SA		5.50			8-1-2023		6,775,000		5,784,156
Intelsat Jackson Holdings SA		7.25			4-1-2019		800,000		771,000
Intelsat Luxembourg SA		7.75			6-1-2021		1,445,000		836,294
Intelsat Luxembourg SA		8.13			6-1-2023		4,865,000		2,773,008
Qtel International Finance Limited		5.00			10-19-2025		300,000		327,900
Virgin Media Finance plc 144A		6.38			4-15-2023		365,000		382,794
									10,875,152
Wireless Telecommunication Services: 0.11%
Globo Communicacoes Participacoes SA 144A		4.88			4-11-2022		595,000		616,569
Utilities: 0.11%
Electric Utilities: 0.11%
Comision Federal de Electricidad 144A		4.88			5-26-2021		650,000		684,938
Total Yankee Corporate Bonds and Notes (Cost $60,248,213)									54,861,684
	Yield					Shares
Short-Term Investments: 6.86%
Investment Companies: 6.86%
Wells Fargo Government Money Market Select Class (l)(u)##		0.68					40,658,824		40,658,824
Total Short-Term Investments (Cost $40,658,824)									40,658,824

Total investments in securities (Cost $788,574,531) *	129.46	%		767,761,176
Other assets and liabilities, net	(29.46	)		(174,693,355	)
Total net assets	100.00	%	$	593,067,821

22 Wells Fargo Multi-Sector Income Fund Portfolio of investments—April 30, 2017 (unaudited)

± 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) The security is fair valued in accordance with procedures approved by the Board of Trustees.

(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 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.

@ 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 unfunded loans.

* Cost for federal income tax purposes is $793,103,154 and unrealized gains (losses) consists of:

Gross unrealized gains	$	26,964,636
Gross unrealized losses		(52,306,614	)
Net unrealized losses	$	(25,341,978	)

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Period	(a)		(b)		(c)		(d)
	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
11/1/2016 to 11/30/2016		57,556		12.65		57,556		3,256,010.00
12/1/2016 to 12/31/2016		0		0		0		3,256,010.00
1/1/2017 to 1/31/2017		N/A		N/A		N/A		N/A
2/1/2016 to 2/28/2017		N/A		N/A		N/A		N/A
3/1/2017 to 3/31/2017		N/A		N/A		N/A		N/A
4/1/2017 to 4/30/2017		N/A		N/A		N/A		N/A
Total		57,556	$	12.65		57,556		3,256,010.00

On December 17, 2015, the Fund announced an open-market share repurchase program (the “Buyback Program”). Under the “Buyback Program”). Under the extended Buyback Program, the Fund may repurchase up to 10% of its outstanding shares during the period beginning on December 17, 2016 and ending on December 31, 2017.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Multi-Sector Income Fund (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company

Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Not applicable

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Multi-Sector Income Fund
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	June 23, 2017

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 date indicated.

Wells Fargo Multi-Sector Income Fund
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	June 23, 2017
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date:	June 23, 2017