Edgar Filing: WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Form N-Q

LOGO

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21331

Wells Fargo Advantage Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

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

(Name and address of agent for service)

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

Date of fiscal year end: October 31

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

Date of reporting period: July 31, 2015

ITEM 1.

INVESTMENTS


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Agency Securities : 2.46%
FHLMC ±		4.60	%	9-1-2032	$	1,276,685	$	1,359,793
FHLMC		8.50		7-1-2028		59,946		73,722
FHLMC		8.50		3-1-2030		39,244		40,161
FHLMC Series 1383 ±		2.39		2-1-2037		455,567		486,022
FHLMC Series 196 Class A ±		0.99		12-15-2021		34,240		34,681
FHLMC Series 2011-K16 Class B 144A±		4.59		11-25-2046		1,000,000		1,080,712
FHLMC Series 2011-K701 Class B 144A±		4.29		7-25-2048		165,000		173,165
FHLMC Series 2011-K702 Class B 144A±		4.77		4-25-2044		740,000		788,263
FHLMC Series 2012-K17 Class B 144A±		4.35		12-25-2044		675,000		720,025
FHLMC Series 2012-K18 Class B 144A±		4.26		1-25-2045		810,000		859,978
FHLMC Series 2012-K501 Class C 144A±		3.42		11-25-2046		800,000		814,202
FHLMC Series 2012-K705 Class B 144A±		4.16		9-25-2044		1,000,000		1,051,885
FHLMC Series 2012-K706 Class B 144A±		4.03		11-25-2044		500,000		524,365
FHLMC Series 2012-K706 Class C 144A±		4.03		11-25-2044		805,000		833,271
FHLMC Series 2012-K707 Class B 144A±		3.88		1-25-2047		930,000		959,571
FHLMC Series 2012-K709 Class B 144A±		3.74		4-25-2045		1,000,000		1,028,344
FHLMC Series 2012-K711 Class B 144A±		3.56		8-25-2045		264,000		273,996
FHLMC Series 2013-K30 Class B 144A±		3.56		6-25-2045		700,000		707,169
FHLMC Series 2013-K713 Class B 144A±		3.16		4-25-2046		1,000,000		1,010,745
FHLMC Series 2390 Class FD ±		0.64		12-15-2031		28,613		28,930
FHLMC Series 2567 Class FH ±		0.59		2-15-2033		88,011		88,977
FHLMC Series K007 Class X1 ±(c)		1.17		4-25-2020		957,024		39,129
FHLMC Series K016 Class X1 ±(c)		1.56		10-25-2021		380,210		30,087
FHLMC Series K020 Class X1 ±(c)		1.46		5-25-2022		6,769,790		540,439
FNMA ±		2.02		9-1-2037		695,300		736,188
FNMA		6.00		4-1-2033		67,011		74,216
FNMA		6.50		11-1-2032		59,662		62,166
FNMA		7.50		7-1-2017		10,864		10,962
FNMA		7.50		10-1-2028		4,260		4,312
FNMA		7.50		2-1-2030		33,372		34,108
FNMA		7.50		9-1-2030		81,402		86,808
FNMA		8.00		6-1-2030		14,540		14,856
FNMA Series 1996-46 Class FA ±		0.69		8-25-2021		19,932		20,075
FNMA Series 1997-20 Class IO ±(c)		1.84		3-25-2027		1,504,625		69,174
FNMA Series 2001-25 Class Z		6.00		6-25-2031		186,982		205,065
FNMA Series 2001-35 Class F ±		0.79		7-25-2031		7,884		8,016
FNMA Series 2001-57 Class F ±		0.69		6-25-2031		7,938		8,040
FNMA Series 2002-77 Class FH ±		0.59		12-18-2032		62,940		63,535
FNMA Series 2002-97 Class FR ±		0.74		1-25-2033		14,899		15,096
FNMA Series G91-16 Class F ±		0.64		6-25-2021		19,124		19,246
FNMA Series G92-17 Class F ±		1.24		3-25-2022		61,822		62,951
GNMA		6.50		6-15-2028		42,709		48,732
GNMA		7.25		7-15-2017		3,605		3,617
GNMA		7.25		8-15-2017		15,530		15,740
GNMA		7.25		8-15-2017		10,105		10,212
GNMA		7.25		9-15-2017		12,253		12,395
GNMA		7.25		10-15-2017		22,933		23,752
GNMA		7.25		10-15-2017		9,839		9,944
GNMA		7.25		11-15-2017		11,732		11,866
GNMA		7.25		1-15-2018		4,204		4,218
GNMA		7.25		1-15-2018		7,108		7,132
GNMA		7.25		2-15-2018		13,818		13,988
GNMA		7.25		5-15-2018		7,714		7,740
Total Agency Securities (Cost $14,193,896)								15,211,782

Asset-Backed Securities : 0.10%
CVS Pass-Through Trust Series T		6.04		12-10-2028		564,607		645,835
Total Asset-Backed Securities (Cost $632,055)								645,835


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name					Shares		Value
Common Stocks : 0.08%

Materials : 0.00%

Chemicals : 0.00%
LyondellBasell Industries NV Class A						9	$	844

Telecommunication Services : 0.08%
Diversified Telecommunication Services : 0.08%
Fairpoint Communications Incorporated †						28,903		480,368

Total Common Stocks (Cost $649,735)								481,212

	Interest rate			Maturity date	Principal
Corporate Bonds and Notes : 71.49%

Consumer Discretionary : 11.73%

Auto Components : 0.57%
Cooper Tire & Rubber Company (i)		7.63	%	3-15-2027	$	1,680,000		1,764,000
Cooper Tire & Rubber Company		8.00		12-15-2019		450,000		506,250
Goodyear Tire & Rubber Company		7.00		5-15-2022		400,000		435,500
Goodyear Tire & Rubber Company		8.75		8-15-2020		468,000		558,675
ZF North America Capital Incorporated 144A		4.50		4-29-2022		245,000		241,325
								3,505,750

Distributors : 0.12%
LKQ Corporation		4.75		5-15-2023		800,000		762,000

Diversified Consumer Services : 1.16%
Monitronics International		9.13		4-1-2020		375,000		363,750
Service Corporation International		6.75		4-1-2016		475,000		489,250
Service Corporation International		7.00		6-15-2017		1,410,000		1,522,800
Service Corporation International		7.50		4-1-2027		2,993,000		3,464,398
Service Corporation International		7.63		10-1-2018		680,000		774,350
Service Corporation International		8.00		11-15-2021		475,000		553,375
								7,167,923

Hotels, Restaurants & Leisure : 2.91%
CCM Merger Incorporated 144A		9.13		5-1-2019		6,270,000		6,771,600
Greektown Holdings LLC 144A		8.88		3-15-2019		7,425,000		7,870,500
Hilton Worldwide Finance LLC		5.63		10-15-2021		195,000		203,044
Pinnacle Entertainment Incorporated		7.50		4-15-2021		2,620,000		2,783,750
Speedway Motorsports Incorporated		5.13		2-1-2023		425,000		420,750
								18,049,644

Household Durables : 0.37%
American Greetings Corporation		7.38		12-1-2021		2,000,000		2,100,000
Tempur Sealy International Incorporated		6.88		12-15-2020		200,000		214,250
								2,314,250

Internet & Catalog Retail : 0.13%
Expedia Incorporated		5.95		8-15-2020		750,000		835,433

Media : 5.34%
Altice US Finance I Corporation 144A		5.38		7-15-2023		945,000		949,725
Altice US Finance II Corporation 144A		7.75		7-15-2025		2,030,000		2,014,775
Cable One Incorporated 144A		5.75		6-15-2022		375,000		383,438
Cablevision Systems Corporation		8.63		9-15-2017		1,310,000		1,439,363


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Media (continued)
CCO Holdings LLC		5.13	%	2-15-2023	$	300,000	$	297,375
CCO Holdings LLC 144A		5.13		5-1-2023		475,000		470,844
CCO Holdings LLC		5.25		9-30-2022		1,250,000		1,265,625
CCO Holdings LLC 144A		5.38		5-1-2025		1,525,000		1,502,125
CCO Holdings LLC 144A		5.88		5-1-2027		705,000		698,391
CCO Holdings LLC		6.63		1-31-2022		775,000		818,594
CCO Holdings LLC		7.38		6-1-2020		1,100,000		1,163,478
CCO Safari II LLC 144A		4.91		7-23-2025		1,225,000		1,225,870
Cequel Communications Holdings I LLC 144A		5.13		12-15-2021		1,170,000		1,086,638
Cinemark USA Incorporated		7.38		6-15-2021		775,000		821,500
CSC Holdings LLC		7.63		7-15-2018		625,000		689,063
CSC Holdings LLC		7.88		2-15-2018		1,100,000		1,207,250
CSC Holdings LLC		8.63		2-15-2019		383,000		435,663
DIRECTV Holdings LLC		3.80		3-15-2022		750,000		752,020
DISH DBS Corporation		7.88		9-1-2019		480,000		537,000
EchoStar DBS Corporation		7.13		2-1-2016		125,000		127,969
Gray Television Incorporated		7.50		10-1-2020		6,380,000		6,754,825
Interpublic Group of Companies		4.00		3-15-2022		750,000		770,279
Lamar Media Corporation		5.88		2-1-2022		690,000		719,325
LIN Television Corporation		6.38		1-15-2021		275,000		282,563
Live Nation Entertainment Incorporated 144A		7.00		9-1-2020		200,000		212,500
National CineMedia LLC		6.00		4-15-2022		1,710,000		1,761,300
National CineMedia LLC		7.88		7-15-2021		1,000,000		1,052,500
Nexstar Broadcasting Group Incorporated 144A		6.13		2-15-2022		175,000		179,375
Nexstar Broadcasting Group Incorporated		6.88		11-15-2020		1,750,000		1,855,000
Outfront Media Capital Corporation		5.63		2-15-2024		20,000		20,400
Outfront Media Capital Corporation		5.88		3-15-2025		775,000		796,313
Time Warner Cable Incorporated		4.00		1-15-2022		750,000		774,200
								33,065,286

Multiline Retail : 0.10%
Macy’s Retail Holdings Incorporated		3.88		1-15-2022		600,000		618,950

Specialty Retail : 1.03%
ABC Supply Company Incorporated 144A		5.63		4-15-2021		450,000		459,000
Advance Auto Parts Incorporated		4.50		1-15-2022		600,000		628,492
Century Intermediate Holding Company (PIK at 10.50%) 144A(i)¥		9.75		2-15-2019		175,000		182,438
L Brands Incorporated		6.63		4-1-2021		750,000		843,285
Penske Auto Group Incorporated		5.38		12-1-2024		1,130,000		1,138,475
Penske Auto Group Incorporated		5.75		10-1-2022		1,155,000		1,202,644
Sonic Automotive Incorporated		5.00		5-15-2023		1,174,000		1,150,520
Sonic Automotive Incorporated		7.00		7-15-2022		700,000		756,000
								6,360,854

Consumer Staples : 0.92%

Beverages : 0.13%
Cott Beverages Incorporated 144A		6.75		1-1-2020		790,000		822,588

Food & Staples Retailing : 0.10%
SABMiller Holdings Incorporated 144A		3.75		1-15-2022		600,000		620,934

Food Products : 0.55%
B&G Foods Incorporated		4.63		6-1-2021		300,000		298,500
Darling Ingredients Incorporated		5.38		1-15-2022		180,000		182,250
Kraft Foods Group Incorporated		3.50		6-6-2022		750,000		759,355
Pilgrim’s Pride Corporation 144A		5.75		3-15-2025		1,130,000		1,155,425
Simmons Foods Incorporated 144A		7.88		10-1-2021		1,100,000		1,012,000
								3,407,530


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Household Products : 0.02%
Energizer Holdings Incorporated 144A		5.50	%	6-15-2025	$	25,000	$	24,438
Spectrum Brands Incorporated 144A		5.75		7-15-2025		100,000		102,980
								127,418

Tobacco : 0.12%
Reynolds American Incorporated 144A		6.88		5-1-2020		650,000		753,576

Energy : 15.77%

Energy Equipment & Services : 5.84%
Bristow Group Incorporated		6.25		10-15-2022		4,478,000		4,231,710
Cleaver Brooks Incorporated 144A(i)		8.75		12-15-2019		95,000		90,250
Era Group Incorporated		7.75		12-15-2022		4,425,000		4,358,625
Forum Energy Technologies Incorporated		6.25		10-1-2021		200,000		193,000
Gulfmark Offshore Incorporated		6.38		3-15-2022		4,225,000		3,115,938
Hilcorp Energy Company 144A		5.00		12-1-2024		325,000		302,250
Hilcorp Energy Company 144A		5.75		10-1-2025		1,300,000		1,235,000
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		2,835,000		2,260,913
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		1,860,000		1,571,700
NGPL PipeCo LLC 144A		7.12		12-15-2017		2,060,000		2,060,000
NGPL PipeCo LLC 144A		7.77		12-15-2037		10,215,000		10,342,688
NGPL PipeCo LLC 144A		9.63		6-1-2019		435,000		435,000
PHI Incorporated		5.25		3-15-2019		5,175,000		4,696,313
TerraForm Power Operating LLC 144A		6.13		6-15-2025		1,250,000		1,253,125
								36,146,512

Oil, Gas & Consumable Fuels : 9.93%
Alpha Natural Resources Incorporated		6.25		6-1-2021		475,000		14,250
Arch Coal Incorporated		7.00		6-15-2019		1,200,000		135,000
Arch Coal Incorporated		7.25		6-15-2021		475,000		47,500
Berry Petroleum Company LLC		6.38		9-15-2022		25,000		16,750
Chesapeake Energy Corporation		6.13		2-15-2021		900,000		776,250
CSI Compressco LP		7.25		8-15-2022		1,205,000		1,135,713
CVR Refining LLC		6.50		11-1-2022		1,599,000		1,606,995
Denbury Resources Incorporated		5.50		5-1-2022		655,000		519,088
Denbury Resources Incorporated		6.38		8-15-2021		1,710,000		1,436,400
El Paso LLC		6.50		9-15-2020		285,000		323,874
El Paso LLC		6.50		4-1-2020		750,000		848,411
El Paso LLC		7.00		6-15-2017		530,000		573,026
El Paso LLC (i)		7.42		2-15-2037		800,000		850,223
El Paso LLC		7.80		8-1-2031		1,850,000		2,094,979
Energy Transfer Partners LP		5.20		2-1-2022		750,000		775,961
Energy XXI Gulf Coast Incorporated		7.75		6-15-2019		575,000		143,750
Exterran Partners LP		6.00		4-1-2021		2,500,000		2,281,250
Kinder Morgan Energy Partners LP		3.95		9-1-2022		750,000		723,403
Nabors Industries Incorporated		4.63		9-15-2021		750,000		736,004
Northern Tier Energy LLC		7.13		11-15-2020		2,900,000		2,958,000
Overseas Shipholding Group Incorporated		7.50		2-15-2021		1,700,000		1,683,000
Overseas Shipholding Group Incorporated		8.13		3-30-2018		2,100,000		2,152,500
Phillips 66		4.30		4-1-2022		625,000		659,096
Pioneer Natural Resources Company		3.95		7-15-2022		750,000		748,810
Pioneer Natural Resources Company		7.50		1-15-2020		1,220,000		1,436,139
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		3,625,000		3,661,250
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		4,038,000		4,179,330
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		2,350,000		2,485,125
Sabine Oil & Gas Corporation (s)		7.25		6-15-2019		520,000		111,800
Sabine Oil & Gas Corporation (s)		7.50		9-15-2020		3,500,000		761,250
Sabine Pass Liquefaction LLC		5.63		2-1-2021		850,000		867,000
Sabine Pass Liquefaction LLC		5.63		4-15-2023		1,020,000		1,020,000
Sabine Pass Liquefaction LLC		5.75		5-15-2024		1,625,000		1,615,859
Sabine Pass Liquefaction LLC		6.25		3-15-2022		3,550,000		3,656,500
Sabine Pass LNG LP		6.50		11-1-2020		4,245,000		4,351,125


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels (continued)
Sabine Pass LNG LP		7.50	%	11-30-2016	$	4,635,000	$	4,820,400
SemGroup Corporation		7.50		6-15-2021		2,665,000		2,771,600
Suburban Propane Partners LP		7.38		8-1-2021		309,000		331,403
Swift Energy Company		7.13		6-1-2017		5,696,000		2,107,520
Swift Energy Company		8.88		1-15-2020		1,075,000		279,500
Ultra Petroleum Corporation 144A		5.75		12-15-2018		410,000		366,950
Ultra Petroleum Corporation 144A		6.13		10-1-2024		1,985,000		1,528,450
Weatherford International Incorporated		6.35		6-15-2017		650,000		684,721
Western Gas Partners LP		5.38		6-1-2021		503,000		541,797
Williams Partners LP		3.35		8-15-2022		750,000		705,551
								61,523,503

Financials : 15.26%

Banks : 0.84%
Bank of America Corporation		3.70		9-1-2015		650,000		651,391
Bank of America Corporation		5.70		1-24-2022		250,000		284,878
CIT Group Incorporated		5.25		3-15-2018		100,000		103,750
CIT Group Incorporated 144A		5.50		2-15-2019		1,275,000		1,348,313
CIT Group Incorporated 144A		6.63		4-1-2018		550,000		592,625
Citigroup Incorporated		4.50		1-14-2022		250,000		270,041
Citigroup Incorporated		6.00		8-15-2017		650,000		704,139
City National Bank		5.38		7-15-2022		500,000		545,447
HSBC Bank USA		6.00		8-9-2017		650,000		704,811
								5,205,395

Capital Markets : 1.12%
Ace Securities Corporation ±		2.82		6-25-2033		433,850		427,158
Blackstone Holdings Finance Company LLC 144A		5.88		3-15-2021		750,000		868,452
Goldman Sachs Group Incorporated		5.75		1-24-2022		750,000		859,012
Jefferies Finance LLC 144A		6.88		4-15-2022		3,560,000		3,417,600
Jefferies Finance LLC 144A		7.38		4-1-2020		200,000		200,000
Jefferies Finance LLC 144A		7.50		4-15-2021		475,000		471,438
Neuberger Berman Group LLC 144A		5.88		3-15-2022		650,000		691,600
								6,935,260

Consumer Finance : 4.11%
Ally Financial Incorporated		8.00		3-15-2020		755,000		890,900
Discover Financial Services		5.20		4-27-2022		750,000		797,831
Ford Motor Credit Company LLC		5.00		5-15-2018		650,000		697,882
Ford Motor Credit Company LLC		8.00		12-15-2016		250,000		271,068
GMAC Limited Liability Corporation		8.00		12-31-2018		1,155,000		1,290,713
Homer City Generation (PIK at 9.23%) LLC ¥		8.73		10-1-2026		1,298,164		1,311,146
Navient Corporation		5.88		3-25-2021		610,000		571,875
Navient Corporation		8.00		3-25-2020		4,240,000		4,399,000
SLM Corporation		6.13		3-25-2024		1,220,000		1,091,900
SLM Corporation		7.25		1-25-2022		930,000		918,375
SLM Corporation		8.45		6-15-2018		1,675,000		1,809,000
Springleaf Finance Corporation		5.40		12-1-2015		1,535,000		1,550,350
Springleaf Finance Corporation		5.75		9-15-2016		1,100,000		1,134,320
Springleaf Finance Corporation		6.00		6-1-2020		1,735,000		1,774,038
Springleaf Finance Corporation		6.50		9-15-2017		200,000		211,740
Springleaf Finance Corporation		6.90		12-15-2017		4,550,000		4,845,750
Springleaf Finance Corporation		7.75		10-1-2021		500,000		551,250


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Consumer Finance (continued)
Springleaf Finance Corporation		8.25	%	10-1-2023	$	1,160,000	$	1,305,000
								25,422,138

Diversified Financial Services : 2.00%
Denali Borrower LLC 144A		5.63		10-15-2020		3,510,000		3,659,175
General Electric Capital Corporation		4.65		10-17-2021		650,000		718,536
Infinity Acquisition LLC 144A(i)		7.25		8-1-2022		2,615,000		2,464,638
ING US Incorporated		5.50		7-15-2022		750,000		850,286
JPMorgan Chase & Company		3.38		5-1-2023		750,000		735,414
Moody’s Corporation		5.50		9-1-2020		1,302,000		1,465,423
NewStar Financial Incorporated 144A		7.25		5-1-2020		2,450,000		2,486,750
								12,380,222

Insurance : 1.36%
American International Group Incorporated		4.88		6-1-2022		750,000		829,874
Endurance Specialty Holdings Limited		7.00		7-15-2034		575,000		689,267
Hartford Financial Services Group Incorporated		5.13		4-15-2022		650,000		723,918
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13		7-15-2019		2,900,000		2,900,000
Liberty Mutual Group Incorporated 144A		4.95		5-1-2022		750,000		817,720
ProAssurance Corporation		5.30		11-15-2023		750,000		802,114
Progressive Corporation ±		6.70		6-15-2067		600,000		625,500
Prudential Covered Trust 144A		3.00		9-30-2015		336,000		337,030
W.R. Berkley Corporation		4.63		3-15-2022		650,000		691,343
								8,416,766

Real Estate Management & Development : 0.90%
Hockey Merger Sub 2 Incorporated 144A		7.88		10-1-2021		2,295,000		2,343,769
Onex Corporation 144A		7.75		1-15-2021		3,205,000		3,233,044
								5,576,813

REITs : 4.93%
Alexandria Real Estate Company		4.60		4-1-2022		650,000		689,969
American Tower Corporation		5.90		11-1-2021		650,000		734,304
Crown Castle International Corporation		4.88		4-15-2022		460,000		472,050
Crown Castle International Corporation		5.25		1-15-2023		95,000		99,513
DuPont Fabros Technology Incorporated LP		5.63		6-15-2023		2,975,000		2,945,250
DuPont Fabros Technology Incorporated LP		5.88		9-15-2021		4,655,000		4,783,013
ESH Hospitality Incorporated 144A		5.25		5-1-2025		1,000,000		973,750
Essex Portfolio LP		3.63		8-15-2022		750,000		758,467
Health Care REIT Incorporated		5.25		1-15-2022		650,000		713,047
Iron Mountain Incorporated		5.75		8-15-2024		5,650,000		5,692,375
Iron Mountain Incorporated		6.00		8-15-2023		2,160,000		2,246,400
Iron Mountain Incorporated		7.75		10-1-2019		365,000		382,338
Iron Mountain Incorporated		8.38		8-15-2021		453,000		466,364
Omega Healthcare Investors Incorporated		6.75		10-15-2022		1,775,000		1,848,219
Sabra Health Care Incorporated		5.38		6-1-2023		850,000		877,625
Sabra Health Care Incorporated		5.50		2-1-2021		1,100,000		1,141,250
The Geo Group Incorporated		5.13		4-1-2023		1,400,000		1,407,000
The Geo Group Incorporated		5.88		1-15-2022		2,640,000		2,758,800
The Geo Group Incorporated		5.88		10-15-2024		465,000		481,275
The Geo Group Incorporated		6.63		2-15-2021		365,000		382,338
Ventas Realty LP		4.25		3-1-2022		650,000		674,370
								30,527,717

Health Care : 6.01%

Biotechnology : 0.12%
Amgen Incorporated		3.63		5-15-2022		750,000		763,119


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Health Care Equipment & Supplies : 0.58%
Crimson Merger Sub Incorporated 144A		6.63	%	5-15-2022	$	2,400,000	$	2,217,000
Hologic Incorporated 144A		5.25		7-15-2022		670,000		693,450
Hologic Incorporated		6.25		8-1-2020		660,000		680,625
								3,591,075

Health Care Providers & Services : 3.32%
Acadia Healthcare Company Incorporated 144A		5.63		2-15-2023		195,000		197,925
Capella Healthcare Incorporated		9.25		7-1-2017		2,700,000		2,781,000
Centene Corporation		5.75		6-1-2017		1,000,000		1,050,750
Community Health Systems Incorporated		6.88		2-1-2022		60,000		64,200
Coventry Health Care Incorporated		5.45		6-15-2021		750,000		834,737
DaVita HealthCare Partners Incorporated		5.00		5-1-2025		445,000		439,994
DaVita HealthCare Partners Incorporated		5.75		8-15-2022		525,000		559,125
Express Scripts Holding Company		3.90		2-15-2022		665,000		681,535
HCA Incorporated		6.50		2-15-2020		1,875,000		2,096,484
HealthSouth Corporation		5.75		11-1-2024		30,000		30,569
HealthSouth Corporation		7.75		9-15-2022		1,050,000		1,096,158
Humana Incorporated		7.20		6-15-2018		750,000		854,291
MPT Operating Partnership LP		6.38		2-15-2022		1,075,000		1,143,531
MPT Operating Partnership LP		6.88		5-1-2021		775,000		813,750
Select Medical Corporation		6.38		6-1-2021		6,215,000		6,292,688
Tenet Healthcare Corporation		6.00		10-1-2020		1,475,000		1,604,063
								20,540,800

Health Care Technology : 0.75%
Emdeon Incorporated		11.00		12-31-2019		4,325,000		4,681,813

Life Sciences Tools & Services : 0.21%
Life Technologies Corporation		6.00		3-1-2020		750,000		846,044
Quintiles Transnational Corporation 144A		4.88		5-15-2023		425,000		431,107
								1,277,151

Pharmaceuticals : 1.03%
Endo Finance LLC 144A		5.38		1-15-2023		375,000		378,983
Endo Finance LLC 144A		5.75		1-15-2022		715,000		734,663
Endo Finance LLC 144A		6.00		7-15-2023		525,000		547,313
Endo Finance LLC 144A		6.00		2-1-2025		775,000		800,188
Endo Finance LLC 144A		7.75		1-15-2022		2,385,000		2,543,006
Pinnacle Incorporated 144A		9.50		10-1-2023		500,000		553,750
Valeant Pharmaceuticals International Incorporated 144A		5.63		12-1-2021		85,000		87,231
Watson Pharmaceuticals Incorporated		3.25		10-1-2022		750,000		730,191
								6,375,325

Industrials : 4.63%

Aerospace & Defense : 0.16%
BAE Systems Holdings Incorporated 144A		3.80		10-7-2024		1,000,000		1,008,021

Airlines : 0.35%
Aviation Capital Group Corporation 144A		6.75		4-6-2021		1,320,000		1,502,171
Delta Air Lines Incorporated		4.75		11-7-2021		615,466		649,316
								2,151,487

Commercial Services & Supplies : 1.66%
ADT Corporation		3.50		7-15-2022		750,000		686,250
ADT Corporation		4.13		6-15-2023		1,075,000		1,005,125
ADT Corporation		6.25		10-15-2021		1,605,000		1,701,300


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Commercial Services & Supplies (continued)
Covanta Holding Corporation		5.88	%	3-1-2024	$	2,260,000	$	2,226,100
Covanta Holding Corporation		6.38		10-1-2022		1,500,000		1,575,000
Covanta Holding Corporation		7.25		12-1-2020		1,480,000		1,550,300
Penske Truck Leasing Company 144A		3.75		5-11-2017		750,000		774,584
Republic Services Incorporated		3.55		6-1-2022		750,000		759,809
								10,278,468

Construction & Engineering : 0.74%
AECOM 144A		5.75		10-15-2022		215,000		218,225
AECOM 144A		5.88		10-15-2024		2,610,000		2,649,150
United Rentals North America Incorporated		4.63		7-15-2023		1,200,000		1,183,500
United Rentals North America Incorporated		5.50		7-15-2025		550,000		525,938
								4,576,813

Professional Services : 0.10%
Verisk Analytics Incorporated		5.80		5-1-2021		530,000		597,193

Road & Rail : 0.11%
TTX Company 144A		2.60		6-15-2020		650,000		652,113

Trading Companies & Distributors : 1.51%
Ashtead Capital Incorporated 144A		6.50		7-15-2022		4,100,000		4,310,166
H&E Equipment Services Incorporated		7.00		9-1-2022		4,065,000		4,105,650
International Lease Finance Corporation 144A		7.13		9-1-2018		75,000		83,719
International Lease Finance Corporation		8.63		9-15-2015		900,000		905,625
								9,405,160

Information Technology : 5.72%

Communications Equipment : 0.22%
CommScope Incorporated 144A		4.38		6-15-2020		210,000		211,313
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		425,000		419,688
Motorola Solutions Incorporated		3.75		5-15-2022		750,000		737,297
								1,368,298

Electronic Equipment, Instruments & Components : 1.20%
Jabil Circuit Incorporated		8.25		3-15-2018		5,275,000		5,947,563
L-3 Communications Corporation		4.95		2-15-2021		750,000		793,422
Zebra Technologies Corporation 144A		7.25		10-15-2022		600,000		657,000
								7,397,985

Internet Software & Services : 0.38%
Infor US Incorporated 144A		6.50		5-15-2022		390,000		398,775
Sophia Holding Finance LP (PIK at 10.38%) 144A¥		9.63		12-1-2018		1,930,000		1,949,300
								2,348,075

IT Services : 2.41%
Audatex North America Incorporated 144A		6.00		6-15-2021		2,725,000		2,782,906
Audatex North America Incorporated 144A		6.13		11-1-2023		1,900,000		1,857,250
First Data Corporation 144A		6.75		11-1-2020		585,000		618,638
First Data Corporation 144A		7.38		6-15-2019		625,000		651,938
First Data Corporation 144A		8.88		8-15-2020		225,000		235,688
First Data Corporation		11.75		8-15-2021		4,125,000		4,681,875
SunGard Data Systems Incorporated		6.63		11-1-2019		525,000		542,609
SunGard Data Systems Incorporated		7.38		11-15-2018		2,457,000		2,535,624


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
IT Services (continued)
SunGard Data Systems Incorporated		7.63	%	11-15-2020	$	990,000	$	1,038,263
								14,944,791

Semiconductors & Semiconductor Equipment : 0.23%
Micron Technology Incorporated		5.88		2-15-2022		1,400,000		1,428,000

Software : 0.52%
Activision Blizzard Incorporated 144A		5.63		9-15-2021		705,000		740,250
Activision Blizzard Incorporated 144A		6.13		9-15-2023		175,000		188,563
Boxer Parent Company Incorporated (PIK at 9.75%) 144A¥		9.00		10-15-2019		2,160,000		1,425,600
CA Incorporated		5.38		12-1-2019		750,000		826,340
SS&C Technologies Incorporated 144A		5.88		7-15-2023		55,000		56,925
								3,237,678

Technology Hardware, Storage & Peripherals : 0.76%
Hewlett-Packard Company		4.05		9-15-2022		750,000		766,623
NCR Corporation		5.88		12-15-2021		230,000		238,050
NCR Corporation		6.38		12-15-2023		3,525,000		3,714,469
								4,719,142

Materials : 1.13%

Chemicals : 0.13%
Dow Chemical Company		4.13		11-15-2021		750,000		788,930

Containers & Packaging : 0.54%
Ball Corporation		5.25		7-1-2025		190,000		191,055
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		35,000		39,025
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		600,000		567,000
Owens-Illinois Incorporated		7.80		5-15-2018		1,295,000		1,450,400
Sealed Air Corporation 144A		5.13		12-1-2024		1,100,000		1,113,750
								3,361,230

Metals & Mining : 0.21%
Cliffs Natural Resources Incorporated 144A		8.25		3-31-2020		640,000		580,800
Freeport-McMoRan Copper & Gold Incorporated		3.55		3-1-2022		600,000		503,250
Glencore Funding LLC 144A		4.00		4-16-2025		200,000		182,885
Indalex Holdings Corporation (i)(s)(a)		11.50		2-1-2020		3,170,000		0
								1,266,935

Paper & Forest Products : 0.25%
Georgia-Pacific LLC		8.88		5-15-2031		1,080,000		1,569,281

Telecommunication Services : 8.34%

Diversified Telecommunication Services : 3.55%
CenturyLink Incorporated		5.80		3-15-2022		600,000		582,750
Citizens Communications Company		7.88		1-15-2027		1,805,000		1,581,776
Frontier Communications Corporation		8.13		10-1-2018		845,000		908,375
Frontier Communications Corporation		8.25		4-15-2017		1,040,000		1,118,000
Frontier Communications Corporation		8.50		4-15-2020		525,000		543,375
GCI Incorporated		6.75		6-1-2021		2,330,000		2,382,425
GCI Incorporated		6.88		4-15-2025		1,200,000		1,221,000
Level 3 Financing Incorporated 144A		5.13		5-1-2023		975,000		955,500
Level 3 Financing Incorporated		5.38		8-15-2022		300,000		303,000
Level 3 Financing Incorporated 144A		5.38		5-1-2025		975,000		949,406
Level 3 Financing Incorporated 144A		5.63		2-1-2023		350,000		355,250


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Diversified Telecommunication Services (continued)
Level 3 Financing Incorporated		6.13	%	1-15-2021	$	175,000	$	183,531
Level 3 Financing Incorporated		7.00		6-1-2020		180,000		189,900
Qwest Corporation		7.13		11-15-2043		795,000		791,025
Qwest Corporation		7.25		9-15-2025		1,040,000		1,190,800
Qwest Corporation		7.63		8-3-2021		230,000		246,100
Syniverse Holdings Incorporated		9.13		1-15-2019		6,305,000		5,532,638
Windstream Corporation		6.38		8-1-2023		800,000		620,000
Windstream Corporation		7.88		11-1-2017		2,330,000		2,359,125
								22,013,976

Wireless Telecommunication Services : 4.79%
Crown Castle Towers LLC 144A		6.11		1-15-2040		750,000		836,329
MetroPCS Wireless Incorporated		6.63		11-15-2020		3,300,000		3,432,000
SBA Communications Corporation		4.88		7-15-2022		640,000		630,400
SBA Communications Corporation		5.63		10-1-2019		160,000		167,600
SBA Communications Corporation		5.75		7-15-2020		2,000,000		2,090,000
Sprint Capital Corporation		6.88		11-15-2028		13,665,000		11,581,043
Sprint Capital Corporation		8.75		3-15-2032		515,000		487,319
Sprint Communications Incorporated 144A		9.00		11-15-2018		325,000		364,000
Sprint Communications Incorporated		11.50		11-15-2021		625,000		710,938
Sprint Corporation		7.13		6-15-2024		960,000		878,400
Sprint Corporation		7.25		9-15-2021		200,000		191,250
Sprint Corporation		7.88		9-15-2023		255,000		244,214
T-Mobile USA Incorporated		6.00		3-1-2023		300,000		312,750
T-Mobile USA Incorporated		6.13		1-15-2022		85,000		88,825
T-Mobile USA Incorporated		6.25		4-1-2021		165,000		172,838
T-Mobile USA Incorporated		6.38		3-1-2025		685,000		718,394
T-Mobile USA Incorporated		6.46		4-28-2019		160,000		165,000
T-Mobile USA Incorporated		6.50		1-15-2024		80,000		84,475
T-Mobile USA Incorporated		6.54		4-28-2020		165,000		173,811
T-Mobile USA Incorporated		6.63		4-1-2023		505,000		537,825
T-Mobile USA Incorporated		6.63		4-28-2021		920,000		974,004
T-Mobile USA Incorporated		6.73		4-28-2022		3,490,000		3,699,400
T-Mobile USA Incorporated		6.84		4-28-2023		1,060,000		1,134,200
								29,675,015

Utilities : 1.98%

Electric Utilities : 0.46%
Great Plains Energy Incorporated		4.85		6-1-2021		750,000		825,272
Otter Tail Corporation (i)		9.00		12-15-2016		1,835,000		2,012,309
								2,837,581

Gas Utilities : 0.44%
AmeriGas Finance LLC		6.75		5-20-2020		1,775,000		1,859,313
AmeriGas Finance LLC		7.00		5-20-2022		795,000		845,562
								2,704,875

Independent Power & Renewable Electricity Producers : 0.85%
Calpine Corporation 144A		6.00		1-15-2022		515,000		544,613
Calpine Corporation 144A		7.88		1-15-2023		642,000		688,946
NSG Holdings LLC 144A		7.75		12-15-2025		2,460,378		2,712,567
Reliant Energy Incorporated		9.24		7-2-2017		394,314		413,044
Reliant Energy Incorporated		9.68		7-2-2026		410,000		436,650
TerraForm Power Operating LLC 144A		5.88		2-1-2023		445,000		449,174
								5,244,994

Multi-Utilities : 0.23%
Ameren Illinois Company		9.75		11-15-2018		500,000		624,146


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Multi-Utilities (continued)
CMS Energy Corporation		5.05	%	3-15-2022	$	750,000	$	826,607
								1,450,753

Total Corporate Bonds and Notes (Cost $440,098,747)								442,802,539

Foreign Corporate Bonds and Notes @: 2.62%

Consumer Discretionary : 0.08%

Auto Components : 0.02%
HP Pelzer Holding GmbH (EUR)		7.50		7-15-2021		100,000		118,611

Distributors : 0.02%
GHD Bondco plc (GBP)		7.00		4-15-2020		100,000		142,110

Internet & Catalog Retail : 0.04%
Priceline Group Incorporated (EUR)		2.38		9-23-2024		200,000		220,259

Consumer Staples : 0.12%

Food Products : 0.12%
BRF SA 144A (BRL)		7.75		5-22-2018		3,100,000		751,471

Energy : 0.30%

Energy Equipment & Services : 0.02%
Rapid Holding GmbH 144A (EUR)		6.63		11-15-2020		100,000		110,616

Oil, Gas & Consumable Fuels : 0.28%
Petroleos Mexicanos 144A (MXN)		7.19		9-12-2024		28,200,000		1,718,690

Financials : 1.63%

Banks : 1.53%
Eurofima (AUD)		6.25		12-28-2018		2,450,000		1,998,128
European Investment Bank (ZAR)		9.00		3-31-2021		17,400,000		1,413,292
KfW (TRY)		5.00		1-16-2017		11,400,000		3,833,693
KfW (AUD)		5.00		3-19-2024		1,300,000		1,072,163
Landwirtschaftliche Rentenbank (ZAR)		8.25		5-23-2022		15,000,000		1,159,720
								9,476,996

Diversified Financial Services : 0.10%
AA Bond Company Limited (GBP)		4.25		7-31-2043		200,000		326,792
TES Finance plc (GBP)		6.75		7-15-2020		200,000		309,597
								636,389

Industrials : 0.04%

Commercial Services & Supplies : 0.04%
Iron Mountain Incorporated (EUR)		6.75		10-15-2018		250,000		274,563

Materials : 0.11%

Chemicals : 0.11%
Albemarle Corporation (EUR)		1.88		12-8-2021		600,000		655,965


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Telecommunication Services : 0.34%

Diversified Telecommunication Services : 0.06%
Verizon Communications Incorporated (EUR)		3.25	%	2-17-2026		300,000	$	371,055

Wireless Telecommunication Services : 0.28%
America Movil SAB de CV (MXN)		7.13		12-9-2024		28,850,000		1,760,812

Total Foreign Corporate Bonds and Notes (Cost $20,294,587)								16,237,537

Foreign Government Bonds @: 23.82%
Brazil (BRL)		10.00		1-1-2017		38,525,000		10,882,706
Brazil (BRL)		10.00		1-1-2025		25,800,000		6,477,078
Colombia (COP)		7.00		5-4-2022		18,650,000,000		6,544,661
Colombia (COP)		7.75		4-14-2021		5,250,000,000		1,953,984
Hungary (HUF)		6.75		11-24-2017		1,305,000,000		5,199,735
Indonesia (IDR)		7.88		4-15-2019		133,640,000,000		9,780,344
Indonesia (IDR)		10.00		7-15-2017		50,000,000,000		3,834,079
Korea (KRW)		5.25		3-10-2027		2,830,000,000		3,081,816
Malaysia (MYR)		3.66		10-15-2020		20,700,000		5,418,047
Malaysia (MYR)		4.18		7-15-2024		19,850,000		5,181,377
Mexico (MXN)		4.75		6-14-2018		191,800,000		11,922,014
Mexico (MXN)		6.50		6-10-2021		40,000,000		2,589,865
Mexico (MXN)		10.00		12-5-2024		62,120,000		4,941,274
Mexico (MXN)		10.00		12-5-2024		14,100,000		1,121,571
Poland (PLN)		1.50		4-25-2020		41,200,000		10,468,433
Poland (PLN)		3.25		7-25-2025		37,100,000		10,103,876
Queensland Treasury (AUD)		5.75		7-22-2024		4,100,000		3,605,677
Republic of South Africa (ZAR)		7.75		2-28-2023		103,000,000		7,965,447
Republic of South Africa (ZAR)		8.00		12-21-2018		129,000,000		10,317,757
Romania (RON)		5.85		4-26-2023		31,550,000		8,976,771
State of New South Wales Australia (AUD)		5.00		8-20-2024		3,900,000		3,310,873
Thailand (THB)		3.25		6-16-2017		110,000,000		3,219,400
Thailand (THB)		3.85		12-12-2025		108,500,000		3,353,689
Turkey (TRY)		6.30		2-14-2018		7,325,000		2,451,711
Turkey (TRY)		9.00		3-8-2017		13,600,000		4,856,266
Total Foreign Government Bonds (Cost $167,994,930)								147,558,451

Loans : 16.40%

Consumer Discretionary : 4.29%

Auto Components : 0.56%
Allison Transmission Incorporated ±		3.50		8-23-2019	$	3,384,370		3,393,507
TI Group Automotive Systems ±		4.50		6-24-2022		70,000		70,438
								3,463,945

Distributors : 0.49%
Spin Holdco Incorporated ±		4.25		11-14-2019		3,025,350		3,022,325

Diversified Consumer Services : 0.11%
CCM Merger Incorporated ±		4.50		8-8-2021		673,163		674,845

Hotels, Restaurants & Leisure : 0.32%
Centaur Acquisition LLC ±		8.75		2-20-2020		1,850,000		1,866,965
TGI Friday’s Incorporated ±		5.25		7-15-2020		104,554		105,143
								1,972,108

Household Durables : 0.12%
Tempur-Pedic International Incorporated ±		3.50		3-18-2020		737,164		739,000


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Household Products : 0.03%
Anchor Glass Container Corporation ±		4.50	%	7-1-2022	$	175,000	$	175,399

Leisure Products : 0.28%
AMF Bowling Centers Incorporated ±		7.25		9-18-2021		1,729,350		1,734,763

Media : 1.82%
Altice US Finance I Corporation ±%%<		0.00		12-14-2022		425,000		422,612
Charter Communications Operating LLC ±%%<		0.00		1-20-2023		120,000		120,263
Entercom Radio LLC ±		4.00		11-23-2018		1,128,502		1,127,655
Learfield Communications Incorporated ±		4.50		10-9-2020		1,193,970		1,194,961
Learfield Communications Incorporated ±		8.75		10-9-2021		2,803,297		2,796,289
Mission Broadcasting Incorporated ±		3.75		10-1-2020		125,735		125,892
Nexstar Broadcasting Incorporated ±		3.75		10-1-2020		142,585		142,764
TWCC Holdings Corporation ±		5.75		2-13-2020		387,481		383,122
TWCC Holdings Corporation ±		7.00		6-26-2020		5,355,000		4,986,844
								11,300,402

Multiline Retail : 0.12%
Doosan Infracore International Incorporated ±		4.50		5-27-2021		200,877		201,630
New Albertson’s Incorporated ±		4.75		6-27-2021		526,025		527,014
								728,644

Specialty Retail : 0.44%
Focus Brands Incorporated ±		4.25		2-21-2018		703,491		703,710
Focus Brands Incorporated ±(i)		10.25		8-21-2018		2,023,863		2,033,982
								2,737,692

Consumer Staples : 0.26%

Food & Staples Retailing : 0.26%
Albertson’s Holdings LLC ±		5.50		8-25-2021		1,621,192		1,625,520

Financials : 2.55%

Capital Markets : 0.22%
American Capital Limited ±		3.50		8-22-2017		1,387,362		1,383,033

Diversified Financial Services : 0.88%
American Beacon Advisors Incorporated ±		5.50		4-30-2022		2,406,572		2,436,654
American Beacon Advisors Incorporated ±		9.75		3-3-2023		440,000		437,800
Ipreo Holdings LLC ±		4.00		8-6-2021		143,913		142,413
LPL Holdings Incorporated ±		3.25		3-29-2019		1,205,969		1,201,821
TMFS Holdings LLC ±(i)		5.50		7-30-2021		1,225,738		1,216,544
								5,435,232

Insurance : 0.10%
Asurion LLC ±		8.50		3-3-2021		360,000		361,800
Hub International Limited ±		4.00		10-2-2020		274,135		272,666
								634,466

Real Estate Management & Development : 0.80%
Capital Automotive LP ±		4.00		4-10-2019		3,071,814		3,083,333
Capital Automotive LP ±		6.00		4-30-2020		1,849,333		1,875,335
								4,958,668


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
REITs : 0.55%
Crown Castle Operating Company ±		3.00	%	1-31-2021	$	3,415,139	$	3,402,708

Health Care : 0.61%

Health Care Equipment & Supplies : 0.10%
DJO Finance LLC ±		4.25		6-8-2020		315,000		315,236
Prestige Brands Incorporated ±		3.51		9-3-2021		315,455		315,625
								630,861

Health Care Providers & Services : 0.27%
Acadia Healthcare Company Incorporated ±		4.25		2-11-2022		159,200		160,660
Capella Healthcare Incorporated ±		5.25		12-31-2021		373,125		374,058
Surgery Center Holdings Incorporated ±		5.25		11-3-2020		1,119,375		1,122,173
								1,656,891

Health Care Technology : 0.07%
Alere Incorporated ±		4.25		6-18-2022		110,000		110,413
Hill-Rom Holdings Incorporated ±%%<		0.00		7-23-2022		75,000		75,281
MedAssets Incorporated ±		4.00		12-12-2019		225,087		224,524
								410,218

Pharmaceuticals : 0.17%
Endo Luxembourg Finance Company ±%%<		0.00		6-11-2022		300,000		301,167
Par Pharmaceutical Companies Incorporated ±		4.25		9-30-2019		139,300		139,196
Valeant Pharmaceuticals International Incorporated ±		3.50		12-11-2019		172,765		172,908
Valeant Pharmaceuticals International Incorporated ±		4.00		4-1-2022		448,875		450,208
								1,063,479

Industrials : 2.78%

Aerospace & Defense : 0.49%
TransDigm Incorporated ±		3.75		2-28-2020		3,034,515		3,028,658

Airlines : 0.02%
LM U.S. Corp Acquisition Incorporated ±		8.25		1-25-2021		105,000		104,300

Chemicals : 0.04%
The Chemours Company ±		3.75		5-22-2022		280,000		268,660

Commercial Services & Supplies : 0.91%
ADS Waste Holdings Incorporated ±		3.75		10-9-2019		1,039,903		1,034,963
Gates Global LLC ±		4.25		7-5-2021		868,438		863,418
Interactive Data Corporation ±		4.75		5-2-2021		1,841,400		1,847,919
Sedgwick Claims Management Services Incorporated ±		3.75		3-1-2021		532,305		526,982
Trinseo Materials Operating S.C.A. ±		4.25		10-13-2021		215,000		214,086
W3 Company ±(i)		9.25		9-13-2020		289,275		230,457
Wash Multifamily Laundry LLC ±		4.25		5-14-2022		102,830		102,573
Wash Multifamily Laundry LLC ±		8.00		5-12-2023		17,885		18,243
WASH Multifamily Laundry Systems LLC ±		4.25		5-14-2022		587,170		585,702
WASH Multifamily Laundry Systems LLC ±		8.00		5-14-2023		102,115		104,157
Waste Industries USA Incorporated ±		4.25		2-27-2020		114,713		115,114
								5,643,614

Electrical Equipment : 0.16%
Nusil Technology LLC ±		5.25		4-7-2017		985,236		979,078

Machinery : 0.71%
Alliance Laundry Systems LLC ±		4.25		12-10-2018		1,642,672		1,643,707


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Machinery (continued)
Alliance Laundry Systems LLC ±		9.50	%	12-10-2019	$	2,230,189	$	2,230,189
Onex Wizard Acquisition Company ±		4.25		3-13-2022		538,650		539,625
								4,413,521

Transportation Infrastructure : 0.45%
HGIM Corporation ±		5.50		6-18-2020		2,962,642		2,275,309
OSG Bulk Ships Incorporated ±		5.25		8-5-2019		89,100		88,933
OSG International Incorporated ±		5.75		8-5-2019		401,447		401,199
								2,765,441

Information Technology : 2.60%

Internet Software & Services : 0.24%
CCC Information Services Incorporated ±		4.00		12-20-2019		585,977		582,133
Vertafore Incorporated ±		9.75		10-29-2017		510,000		512,973
Zayo Group LLC ±		3.75		5-6-2021		397,978		396,983
								1,492,089

Semiconductors & Semiconductor Equipment : 0.64%
Avago Technologies ±		3.75		5-6-2021		2,468,949		2,471,418
Freescale Semiconductor Incorporated ±		4.25		3-1-2020		1,462,576		1,464,770
								3,936,188

Technology Hardware, Storage & Peripherals : 1.72%
CDW LLC ±		3.25		4-29-2020		880,001		876,331
Dell Incorporated ±		4.00		4-29-2020		8,323,514		8,318,770
Kronos Incorporated ±		4.50		10-30-2019		579,290		579,111
Peak 10 Incorporated ±		8.25		6-17-2022		430,000		408,500
Riverbed Technology Incorporated ±		6.00		4-24-2022		498,750		504,236
								10,686,948

Telecommunication Services : 1.39%

Diversified Telecommunication Services : 1.01%
Avaya Incorporated ±		4.69		10-26-2017		199,261		196,987
Level 3 Financing Incorporated ±		4.00		1-15-2020		1,700,000		1,703,723
nTelos Incorporated ±		5.75		11-9-2019		2,014,493		1,802,971
Telesat Canada ±		3.50		3-28-2019		2,570,947		2,563,440
								6,267,121

Wireless Telecommunication Services : 0.38%
LTS Buyer LLC ±		4.00		4-11-2020		742,424		738,252
LTS Buyer LLC ±		8.00		4-12-2021		566,625		562,517
Syniverse Holdings Incorporated ±		4.00		4-23-2019		1,129,493		1,072,806
								2,373,575

Utilities : 1.92%

Electric Utilities : 1.84%
Green Energy Partners ±		6.50		11-13-2021		1,330,000		1,339,563
Texas Competitive Electric Holdings Company LLC ±		4.66		10-10-2015		20,096,983		10,058,540
								11,398,103


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Independent Power & Renewable Electricity Producers : 0.08%
Calpine Corporation ±		4.00	%	10-9-2019	$	497,442	$	498,154

Total Loans (Cost $112,003,685)								101,605,649

Municipal Obligations : 0.06%

New York : 0.06%
Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)		5.00		4-1-2018		345,000		341,843

Total Municipal Obligations (Cost $345,000)								341,843

Non-Agency Mortgage-Backed Securities : 7.66%
American General Mortgage Loan Series 2010 Class 1A-A3 144A±		5.65		3-25-2058		436,358		441,885
American Home Mortgage Assets Series 2006-2 Class 1A1 ±		1.13		9-25-2046		3,324,411		2,365,146
Argent Securities Incorporated Series 2004-W5 Class AV3B ±		1.09		4-25-2034		78,122		75,775
Asset Backed Funding Certificates Series 2003-AHL1 Class A1		4.18		3-25-2033		221,284		220,798
Asset Backed Securities Corporation Home Equity Series 2002-HE3 Class M2 ±		2.51		10-15-2032		180,994		179,211
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±		5.84		7-10-2044		1,340,000		1,370,662
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48		1-15-2049		500,000		519,073
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±		6.26		2-10-2051		550,000		597,639
Banc of America Commercial Mortgage Trust Series 2006-5 Class AM		5.45		9-10-2047		750,000		776,726
Banc of America Commercial Mortgage Trust Series 2007-3 Class AM ±		5.57		6-10-2049		430,000		456,985
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50		9-25-2035		432,972		451,570
Banc of America Funding Corporation Series 2009 Class R6-3A1 144A±		2.01		1-26-2037		96,859		97,015
Banc of America Mortgage Securities Series 2003 Class A-3A1 ±		2.62		2-25-2033		139,141		134,807
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±		5.89		6-11-2050		318,000		341,486
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±		6.08		6-11-2050		100,000		108,676
Centex Home Equity Series 2002-A Class AF6		5.54		1-25-2032		130,707		130,691
Centex Home Equity Series 2002-D Class AF6 ±		4.66		12-25-2032		48,932		49,500
Centex Home Equity Series 2004-B Class AF6		4.69		3-25-2034		256,555		263,336
Citigroup Commercial Mortgage Trust Series 2006 Class C4 ±		5.77		3-15-2049		680,000		700,209
Citigroup Commercial Mortgage Trust Series 2007-C6 Class AM ±		5.71		12-10-2049		450,000		474,776
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±		4.88		9-10-2045		1,000,000		1,070,971
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±		0.57		12-25-2033		69,493		66,669
Commercial Mortgage Trust Series 2012-CR2 Class C ±		4.86		8-15-2045		1,000,000		1,072,547
Commercial Mortgage Trust Series 2013-FL3 Class B 144A±		2.34		10-13-2028		1,000,000		998,678
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.54		2-25-2034		97,099		101,105
Countrywide Home Loans Series 2003-48 Class 2A2 ±		2.63		10-25-2033		135,322		134,270
Credit Suisse Commercial Mortgage Trust Series 2006-C3 Class AM ±		5.81		6-15-2038		1,045,000		1,077,263
Credit Suisse Commercial Mortgage Trust Series 2006-C4 Class AM		5.51		9-15-2039		1,500,000		1,558,614
Credit Suisse Commercial Mortgage Trust Series 2006-C5 Class AM		5.34		12-15-2039		1,000,000		1,044,997
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±		2.22		9-25-2032		602,909		562,114
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		2.83		6-25-2033		166,605		165,643
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±		2.24		3-25-2033		46,339		45,053
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±		0.85		4-25-2036		162,618		162,311
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62		7-25-2034		423,501		429,356
First Horizon Mortgage Pass Through Series 2004-AR1 Class 1A1 ±		2.59		2-25-2034		446,676		441,839
First Horizon Mortgage Pass Through Series 2004-AR4 Class 3A1 ±		2.71		8-25-2034		15,016		14,717
GCCFC Commercial Mortgage Trust Series 2007-GG9 Class AM		5.48		3-10-2039		248,914		259,188
GCCFC Commercial Mortgage Trust Series 2007-GG9 Class AMFX		5.48		3-10-2039		100,000		104,459
Global Mortgage Securitization Limited Series 2004-A Class A2 144A±		0.51		11-25-2032		274,200		265,920


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5		5.51	%	7-25-2034	$	84,376	$	85,692
Greenwich Capital Commercial Funding Corporation Series 2006-GG7 Class AM ±		5.82		7-10-2038		2,600,000		2,676,989
Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4		5.74		12-10-2049		473,302		499,777
GS Mortgage Securities Trust Series 2006-GG6 Class AM ±		5.55		4-10-2038		835,000		846,347
GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±		5.79		8-10-2045		897,535		952,579
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±(c)		1.48		8-10-2043		5,542,654		327,898
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±(c)		2.54		5-10-2045		4,752,708		477,913
GS Mortgage Securities Trust Series 2014-New Class C 144A		3.79		1-10-2031		1,000,000		1,006,079
GSAA Home Equity Trust Series 2004-5 Class AF5 ±		4.87		6-25-2034		19,847		20,068
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		0.62		4-25-2035		13,802		13,669
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 144A±		0.49		3-25-2035		153,027		150,174
GSMPS Mortgage Loan Trust Series 2006-SEA1 Class A 144A±		0.49		5-25-2036		139,533		138,066
JPMorgan Chase Commercial Mortgage Trust Series 2007-CB18 Class AM ±		5.47		6-12-2047		875,000		920,078
JPMorgan Chase Commercial Mortgage Trust Series 2007-LDPX Class AM ±		5.46		1-15-2049		550,000		569,003
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		2.67		7-25-2034		74,568		74,729
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		2.82		7-25-2034		79,429		78,469
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		2.60		6-25-2035		314,755		319,979
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±		6.00		2-27-2037		56,620		57,861
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±		6.00		2-27-2037		246,843		253,121
Lehman Brothers-UBS Commercial Mortgage Trust Series 2007-C1 Class AM		5.46		2-15-2040		750,000		788,662
Lehman Brothers-UBS Commercial Mortgage Trust Series 2008-C1 Class AM ±		6.15		4-15-2041		820,000		888,378
Lehman XS Trust Series 2006-18N Class A5A ±		0.36		12-25-2036		2,920,983		2,356,123
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±		2.49		12-25-2033		511,215		505,973
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±		2.64		1-25-2034		20,427		19,776
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±		2.74		11-21-2034		31,952		32,683
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50		1-25-2020		53,459		55,541
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM		5.20		12-12-2049		340,000		354,642
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70		9-12-2049		829,000		881,835
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±		5.25		8-25-2036		103,591		107,222
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM ±		5.68		5-12-2039		565,000		579,697
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±		5.83		6-12-2050		631,215		657,387
Mesa Trust Asset Backed Certificates Series 2001-5 Class A 144A±		0.99		12-25-2031		19,146		17,446
Mid State Trust Series 11 Class A1		4.86		7-15-2038		247,994		262,742
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		1.10		1-25-2029		128,667		120,465
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±(c)		1.82		8-15-2045		5,661,354		426,804
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		1.24		12-27-2033		578,187		557,892
Morgan Stanley Capital I Trust Series 2006-HQ10 Class AM		5.36		11-12-2041		500,000		521,289
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AJ ±		5.79		7-12-2044		1,000,000		1,033,308
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AM ±		5.77		7-12-2044		25,000		25,816
Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM		5.37		12-15-2043		500,000		523,411
Morgan Stanley Capital I Trust Series 2007-HQ13 Class A3		5.57		12-15-2044		1,355,000		1,434,627
Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B 144A±		5.79		8-15-2045		615,000		650,714
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±		5.52		3-15-2045		900,000		982,021
New Century Home Equity Loan Trust Series 2004-3 Class M1 ±		1.12		11-25-2034		1,165,049		1,076,417
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ ±		0.77		3-25-2035		62,015		61,896
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		2.48		5-25-2035		45,823		46,238
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±		2.84		12-26-2035		36,659		36,749
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88		2-25-2035		520,017		524,304
Residential Funding Mortgage Securities Trust Series 03-S12 Class 2A1		4.00		12-25-2032		71,163		70,801
Saxon Asset Securities Trust Series 2002-1 Class AF5 ±		6.26		12-25-2030		165,452		171,498
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		613,294		620,667
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		0.95		4-20-2033		23,859		22,840


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±		2.51	%	3-25-2034	$	69,491	$	68,609
Structured Asset Securities Corporation Series 1998-2 Class A ±		0.71		2-25-2028		273,417		269,421
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		0.79		10-25-2027		81,939		80,097
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		1.33		11-25-2033		173,407		173,464
Vendee Mortgage Trust Series 2003-2 Class IO ±(c)		0.77		5-15-2033		6,184,298		200,928
Wachovia Bank Commercial Mortgage Trust Series 2006-C23 Class AM ±		5.47		1-15-2045		1,220,000		1,233,167
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50		7-25-2034		192,546		205,825
Total Non-Agency Mortgage-Backed Securities (Cost $46,141,147)								47,447,546

	Dividend yield				Shares
Preferred Stocks : 0.19%

Financials : 0.19%

Banks : 0.19%
GMAC Capital Trust I ±		7.74				44,400		1,164,612

Total Preferred Stocks (Cost $1,130,340)								1,164,612

	Interest rate				Principal
Yankee Corporate Bonds and Notes : 8.91%

Consumer Discretionary : 0.59%

Diversified Consumer Services : 0.12%
Anglo American Capital Company 144A		4.13		9-27-2022	$	750,000		702,899

Media : 0.47%
Grupo Televisa SAB		6.00		5-15-2018		750,000		823,425
Myriad International Holdings BV		6.00		7-18-2020		500,000		541,011
Myriad International Holdings BV 144A		6.38		7-28-2017		750,000		798,750
WPP Finance 2010		3.63		9-7-2022		750,000		756,423
								2,919,609

Consumer Staples : 0.45%

Beverages : 0.33%
Anadolu Efes		3.38		11-1-2022		1,400,000		1,229,900
Pernod Ricard SA 144A		4.45		1-15-2022		760,000		804,998
								2,034,898

Tobacco : 0.12%
BAT International Finance plc 144A		3.25		6-7-2022		750,000		751,477

Energy : 0.59%

Energy Equipment & Services : 0.12%
Ensco plc		4.70		3-15-2021		750,000		737,045

Oil, Gas & Consumable Fuels : 0.47%
Baytex Energy Corporation 144A		5.63		6-1-2024		325,000		279,500
Griffin Coal Mining Company Limited 144A(i)(s)(a)		9.50		12-1-2016		1,685,411		674,164
Griffin Coal Mining Company Limited (i)(s)(a)		9.50		12-1-2016		137,792		55,117
Petrobras International Finance Company		5.38		1-27-2021		670,000		623,743
Petroleos Mexicanos		4.88		1-24-2022		750,000		778,875
Woodside Finance Limited 144A		8.75		3-1-2019		405,000		484,515
								2,895,914


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Financials : 1.66%

Banks : 1.56%
Banco del Estado de Chile 144A		3.88	%	2-8-2022	$	650,000	$	669,133
Corporación Andina de Fomento		4.38		6-15-2022		958,000		1,039,276
Export Import Bank of Korea		5.00		4-11-2022		750,000		844,685
ITAU Unibanco Holding SA		5.13		5-13-2023		1,650,000		1,585,650
Macquarie Bank Limited 144A		5.00		2-22-2017		750,000		789,244
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		415,000		425,375
Preferred Term Securities XII Limited (i)(s)(a)		0.00		12-24-2033		635,000		0
Royal Bank of Scotland plc		4.38		3-16-2016		750,000		764,948
Standard Chartered Bank 144A		6.40		9-26-2017		650,000		706,228
Teekay Corporation		8.50		1-15-2020		2,570,000		2,820,575
								9,645,114

Diversified Financial Services : 0.10%
Tyco Electronics Group SA		3.50		2-3-2022		625,000		637,072

Health Care : 0.99%

Pharmaceuticals : 0.99%
Mallinckrodt plc 144A		4.88		4-15-2020		100,000		102,915
Mallinckrodt plc 144A		5.50		4-15-2025		195,000		196,219
Perrigo Finance plc		3.90		12-15-2024		1,000,000		989,350
Valeant Pharmaceuticals International Incorporated 144A		5.88		5-15-2023		985,000		1,024,302
Valeant Pharmaceuticals International Incorporated 144A		6.13		4-15-2025		395,000		412,775
Valeant Pharmaceuticals International Incorporated 144A		6.75		8-15-2018		680,000		714,425
Valeant Pharmaceuticals International Incorporated 144A		7.50		7-15-2021		2,505,000		2,717,925
								6,157,911

Industrials : 0.48%

Aerospace & Defense : 0.05%
Bombardier Incorporated 144A		7.50		3-15-2025		390,000		322,725

Commercial Services & Supplies : 0.26%
GFL Environmental Incorporated 144A		7.88		4-1-2020		1,575,000		1,610,438

Machinery : 0.04%
Sensata Technologies BV 144A		5.00		10-1-2025		235,000		230,888

Road & Rail : 0.13%
Canadian Pacific Railway Company		4.50		1-15-2022		750,000		810,113

Information Technology : 0.25%

Communications Equipment : 0.13%
Ericsson LM		4.13		5-15-2022		750,000		782,149

Internet Software & Services : 0.12%
Tencent Holdings Limited 144A		4.63		12-12-2016		750,000		780,501

Materials : 1.25%

Containers & Packaging : 0.39%
Ardagh Finance Holdings SA (PIK at 8.63%) 144A¥		8.63		6-15-2019		1,286,489		1,344,381
Ardagh Packaging Finance plc 144A		9.13		10-15-2020		1,020,000		1,074,825
								2,419,206


Portfolio of investments — July 31, 2015 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name			Interest rate			Maturity date	Principal		Value
Metals & Mining : 0.62%
ArcelorMittal SA				5.25	%	2-25-2017	$	725,000	$	749,469
ArcelorMittal SA				5.13		6-1-2020		100,000		100,250
ArcelorMittal SA				6.13		6-1-2025		100,000		95,250
ArcelorMittal SA				7.00		2-25-2022		255,000		261,375
FMG Resources August 2006 Proprietary Limited 144A				6.88		4-1-2022		320,000		184,800
Novelis Incorporated				8.38		12-15-2017		550,000		569,250
Novelis Incorporated				8.75		12-15-2020		1,125,000		1,186,875
Vale Overseas Limited				4.38		1-11-2022		750,000		722,025
										3,869,294

Paper & Forest Products : 0.24%
Sappi Limited 144A				7.50		6-15-2032		1,560,000		1,474,200

Telecommunication Services : 2.54%

Diversified Telecommunication Services : 2.29%
Intelsat Jackson Holdings SA				5.50		8-1-2023		7,925,000		7,172,125
Intelsat Jackson Holdings SA				7.25		10-15-2020		650,000		645,125
Intelsat Jackson Holdings SA				7.50		4-1-2021		1,025,000		1,019,875
Intelsat Luxembourg SA				7.75		6-1-2021		1,435,000		1,140,825
Intelsat Luxembourg SA				8.13		6-1-2023		4,190,000		3,331,050
Qtel International Finance Limited				5.00		10-19-2025		300,000		325,125
Virgin Media Finance plc 144A				5.38		4-15-2021		162,000		166,658
Virgin Media Finance plc 144A				6.38		4-15-2023		365,000		381,425
										14,182,208

Wireless Telecommunication Services : 0.25%
Globo Communicacoes Participacoes SA 144A				4.88		4-11-2022		750,000		768,971
Telesat Canada Incorporated 144A				6.00		5-15-2017		775,000		788,078
										1,557,049

Utilities : 0.11%

Electric Utilities : 0.11%
Comision Federal de Electricidad 144A				4.88		5-26-2021		650,000		686,394

Total Yankee Corporate Bonds and Notes (Cost $57,241,103)										55,207,104

			Yield				Shares
Short-Term Investments : 2.31%

Investment Companies : 2.31%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##				0.13				14,274,002		14,274,002

Total Short-Term Investments (Cost $14,274,002)										14,274,002

Total investments in securities (Cost $874,999,227)*	136.10	%								842,978,112
Other assets and liabilities, net	(36.10	)								(223,579,431	)

Total net assets	100.00	%							$	619,398,681

±	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


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — July 31, 2015 (unaudited)

(i)

Illiquid security

¥	A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.

(s)

The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.

(a)

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

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

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

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

(l)

The security represents an affiliate 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 $878,993,493 and unrealized gains (losses) consists of:


Gross unrealized gains	$	17,880,345
Gross unrealized losses		(53,895,726	)

Net unrealized losses	$	(36,015,381	)


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

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

Notes to Portfolio of investments – July 31, 2015 (unaudited)

Securities valuation

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

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

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary 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.

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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.

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

Forward foreign currency contracts

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date.

Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Loans

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

As of July 31, 2015, the Fund had unfunded loan commitments of $917,700.

Fair valuation measurements

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


Level 1 –		quoted prices in active markets for identical securities
Level 2 –		other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)
Level 3 –		significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2015:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	15,211,782	$	0	$	15,211,782
Asset-backed securities		0		645,835		0		645,835
Common stocks
Materials		844		0		0		844
Telecommunication services		480,368		0		0		480,368
Corporate bonds and notes		0		442,802,539		0		442,802,539
Foreign corporate bonds and notes		0		16,237,537		0		16,237,537
Foreign government bonds		0		147,558,451		0		147,558,451
Loans		0		85,451,057		16,154,592		101,605,649
Municipal obligations		0		341,843		0		341,843
Non-agency mortgage-backed securities		0		47,447,546		0		47,447,546
Preferred stocks
Financials		1,164,612		0		0		1,164,612
Yankee corporate bonds and notes		0		54,477,823		729,281		55,207,104
Short-term investments
Investment companies		14,274,002		0		0		14,274,002

		15,919,826		810,174,413		16,883,873		842,978,112
Forward foreign currency contracts		0		768,788		0		768,788

Total assets	$	15,919,826	$	810,943,201	$	16,883,873	$	843,746,900


Liabilities
Forward foreign currency contracts	$	0	$	729,600	$	0	$	729,600

Total liabilities	$	0	$	729,600	$	0	$	729,600

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At July 31, 2015, the Fund did not have any transfers into/out of Level 1 or Level 2.

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


	Loans			Yankee corporate bonds and notes		Total
Balance as of October 31, 2014	$	14,853,033		$	0	$	14,853,033
Accrued discounts (premiums)		6,694			0		6,694
Realized gains (losses)		(8,319	)		0		(8,319	)
Change in unrealized gains (losses)		37,214			0		37,214
Purchases		7,678,970			0		7,678,970
Sales		(4,154,158	)		0		(4,154,158	)
Transfers into Level 3		4,181,255			729,281		4,910,536
Transfers out of Level 3		(6,440,097	)		0		(6,440,097	)

Balance as of July 31, 2015	$	16,154,592		$	729,281	$	16,883,873

Change in unrealized gains (losses) relating to securities still held at July 31, 2015	$	17,411		$	0	$	17,411

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

Derivative transactions

During the nine months ended July 31, 2015, the Fund entered into forward foreign currency exchange contracts for economic hedging purposes. At July 31, 2015, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:


Exchange date	Counterparty	Contracts to receive	U.S. value at July 31, 2015	In exchange for U.S. $	Unrealized losses
8-10-2015	State Street Bank	31,500,000 MYR	$8,232,312	$8,744,110	$(511,798)
9-28-2015	State Street Bank	42,650,000 THB	1,207,843	1,239,465	(31,622)
9-28-2015	State Street Bank	100,000,000 THB	2,831,988	2,943,774	(111,786)

Forward foreign currency contracts to sell:


Exchange date	Counterparty	Contracts to deliver	U.S. value at July 31, 2015	In exchange for U.S. $	Unrealized gains (losses)
8-10-2015	State Street Bank	4,600,000,000 COP	$1,596,526	$1,936,842	$340,316
9-9-2015	State Street Bank	1,500,000,000 HUF	5,359,272	5,401,707	42,435
9-11-2015	State Street Bank	4,000,000 TRY	1,427,534	1,421,419	(6,115)
9-28-2015	State Street Bank	14,475,000 BRL	4,147,175	4,533,212	386,037
10-29-2015	State Street Bank	86,600,000 MXN	5,339,285	5,271,006	(68,279)

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA — ACA Financial Guaranty Corporation

ADR — American depositary receipt

ADS — American depositary shares

AGC — Assured Guaranty Corporation

AGM — Assured Guaranty Municipal

Ambac — Ambac Financial Group Incorporated

AMT — Alternative minimum tax

AUD — Australian dollar

BAN — Bond anticipation notes

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazilian real

CAB — Capital appreciation bond

CAD — Canadian dollar

CCAB — Convertible capital appreciation bond

CDA — Community Development Authority

CDO — Collateralized debt obligation

CHF — Swiss franc

COP — Colombian peso

CLP — Chilean peso

DKK — Danish krone

DRIVER — Derivative inverse tax-exempt receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETF — Exchange-traded fund

EUR — Euro

FDIC — Federal Deposit Insurance Corporation

FFCB — Federal Farm Credit Banks

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Administration

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FICO — The Financing Corporation

FNMA — Federal National Mortgage Association

FSA — Farm Service Agency

GBP — Great British pound

GDR — Global depositary receipt

GNMA — Government National Mortgage Association

GO — General obligation

HCFR — Healthcare facilities revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher education facilities authority revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong dollar

HUD — Department of Housing and Urban Development

HUF — Hungarian forint

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Indonesian rupiah

IEP — Irish pound

JPY — Japanese yen

KRW — Republic of Korea won

LIBOR — London Interbank Offered Rate

LIFER — Long Inverse Floating Exempt Receipts

LIQ — Liquidity agreement

LLC — Limited liability company

LLLP — Limited liability limited partnership

LLP — Limited liability partnership

LOC — Letter of credit

LP — Limited partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multifamily housing revenue

MSTR — Municipal securities trust receipts

MTN — Medium-term note

MUD — Municipal Utility District

MXN — Mexican peso

MYR — Malaysian ringgit

National — National Public Finance Guarantee Corporation

NGN — Nigerian naira

NOK — Norwegian krone

NZD — New Zealand dollar

PCFA — Pollution Control Financing Authority

PCL — Public Company Limited

PCR — Pollution control revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable floating option tax-exempt receipts

plc — Public limited company

PLN — Polish zloty

PUTTER — Puttable tax-exempt receipts

R&D — Research & development

Radian — Radian Asset Assurance

RAN — Revenue anticipation notes

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real estate investment trust

ROC — Reset option certificates

RON — Romanian lei

RUB — Russian ruble

SAVRS — Select auction variable rate securities

SBA — Small Business Authority

SDR — Swedish depositary receipt

SEK — Swedish krona

SFHR — Single-family housing revenue

SFMR — Single-family mortgage revenue

SGD — Singapore dollar

SPA — Standby purchase agreement

SPDR — Standard & Poor’s Depositary Receipts

SPEAR — Short Puttable Exempt Adjustable Receipts

STRIPS — Separate trading of registered interest and

principal securities

TAN — Tax anticipation notes

TBA — To be announced

THB — Thai baht

TIPS — Treasury inflation-protected securities

TRAN — Tax revenue anticipation notes

TRY — Turkish lira

TTFA — Transportation Trust Fund Authority

TVA — Tennessee Valley Authority

ZAR — South African rand

ITEM 2.

CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Advantage Multi-Sector Income Fund (the “Fund”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Fund is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

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

SIGNATURES

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


Wells Fargo Advantage Multi-Sector Income Fund

By:		/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

Date: September 23, 2015

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


Wells Fargo Advantage Multi-Sector Income Fund

By:		/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

Date: September 23, 2015


By:		/s/ Jeremy DePalma
		Jeremy DePalma
		Treasurer

Date: September 23, 2015