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, 12th Floor, San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market Street, 12th Floor, San Francisco, CA 94105
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-643-9691
Date of fiscal year end: October 31, 2009
Date of reporting period: July 31, 2010
ITEM 1. SCHEDULE OF INVESTMENTS
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
CORPORATE BONDS & NOTES(f): 70.72%
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
AUSTRALIA: 1.22%
3,405,000 FMG FINANCE PROPERTY LIMITED++ (Financials, Real Estate
Management & Development, USD) 10.63% 09/01/2016 $ 3,881,700
475,000 GRIFFIN COAL MINING COMPANY LIMITED (Energy, Oil, Gas &
Consumable Fuels, USD) 9.50 12/01/2016 285,000
5,810,000 GRIFFIN COAL MINING COMPANY LIMITED++#### (Energy, Oil, Gas
& Consumable Fuels, USD) 9.50 12/31/2049 3,486,000
725,000 RABOBANK AUSTRALIA LIMITED (Financials, Commercial Banks,
NZD) 6.25 11/22/2011 538,131
8,190,831
---------------
AUSTRIA: 0.97%
1,170,000 PE PAPER ESCROW GMBH++ (Materials, Paper & Forest Products,
USD) 12.00 08/01/2014 1,316,250
2,085,000 SAPPI LIMITED++ (Materials, Paper & Forest Products, USD) 6.75 06/15/2012 2,082,394
3,860,000 SAPPI LIMITED++ (Materials, Paper & Forest Products, USD) 7.50 06/15/2032 3,107,300
6,505,944
---------------
BERMUDA: 1.55%
250,000 CENTRAL EUROPEAN MEDIA ENTERPRISES LIMITED FRN (Consumer
Discretionary, Media, EUR) 2.60 05/15/2014 247,599
1,335,000 DIGICEL GROUP LIMITED++ (Telecommunication Services,
Wireless Telecommunication Services, USD) 12.00 04/01/2014 1,515,225
570,000 GLOBAL CROSSING LIMITED++ (Telecommunication Services,
Diversified Telecommunication Services, USD) 12.00 09/15/2015 632,700
2,495,000 INTELSAT LIMITED (Telecommunication Services, Wireless
Telecommunication Services, USD) 8.50 01/15/2013 2,532,425
275,000 INTELSAT LIMITED (Telecommunication Services, Wireless
Telecommunication Services, USD) 11.25 06/15/2016 297,000
234,000 INTELSAT LIMITED++ (Telecommunication Services, Wireless
Telecommunication Services, USD) 8.88 01/15/2015 242,775
850,000 INTELSAT LIMITED++ (Telecommunication Services, Wireless
Telecommunication Services, USD) 8.50 11/01/2019 898,875
60,000 NCL CORPORATION LIMITED (Consumer Discretionary, Hotels,
Restaurants & Leisure, USD) 11.75 11/15/2016 66,675
4,020,000 SHIP FINANCE INTERNATIONAL LIMITED (Financials, Consumer
Finance, USD) 8.50 12/15/2013 3,989,850
10,423,124
---------------
CANADA: 1.87%
380,000 BOMBARDIER INCORPORATED (Industrials, Aerospace & Defense, EUR) 7.25 11/15/2016 519,957
625,000 CONNACHER OIL & GAS LIMITED++ (Energy, Oil, Gas & Consumable
Fuels, USD) 11.75 07/15/2014 689,063
2,550,000 CONNACHER OIL & GAS LIMITED++ (Energy, Oil, Gas & Consumable
Fuels, USD) 10.25 12/15/2015 2,581,875
475,000 NOVA CHEMICALS CORPORATION++ (Materials, Chemicals, USD) 8.38 11/01/2016 486,281
675,000 NOVA CHEMICALS CORPORATION++ (Materials, Chemicals, USD) 8.63 11/01/2019 700,313
1,030,000 NOVELIS INCORPORATED (Materials, Metals & Mining, USD) 7.25 02/15/2015 1,053,175
855,000 OPTI CANADA INCORPORATED++ (Energy, Oil, Gas & Consumable
Fuels, USD) 9.00 12/15/2012 869,963
2,420,000 OPTI CANADA INCORPORATED (Energy, Oil, Gas & Consumable
Fuels, USD) 7.88 12/15/2014 2,093,300
1,120,000 OPTI CANADA INCORPORATED (Energy, Oil, Gas & Consumable
Fuels, USD) 8.25 12/15/2014 973,000
2,050,000 TECK RESOURCES LIMITED (Materials, Metals & Mining, USD) 10.75 05/15/2019 2,560,040
12,526,967
---------------
The accompanying notes are an integral part of these financial statements.
1
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
CAYMAN ISLANDS: 0.78%
1,515,000 P2021 RIG COMPANY++ (Energy, Oil, Gas & Consumable Fuels,
USD) 13.50% 12/15/2013 $ 1,568,025
2,150,000 PETROPLUS FINANCE LIMITED (Financials, Consumer Finance, USD) 5.75 01/20/2020 2,285,822
635,000 PREFERRED TERM SECURITIES XII LIMITED FRN####
(i)(Financials, Diversified Financial Services, USD) 0.96 12/24/2033 191
1,405,000 RDS ULTRA-DEEPWATER LIMITED@ (Energy, Oil, Gas & Consumable
Fuels, USD) 11.88 03/15/2017 1,376,900
5,230,938
---------------
DENMARK: 1.67%
36,100,000 NYKREDIT (Financials, Commercial Banks, DKK) 4.00 10/01/2041 6,097,109
30,450,000 REALKREDIT DANMARK (Financials, Commercial Banks, DKK) 4.00 10/01/2041 5,149,509
11,246,618
---------------
FRANCE: 1.28%
1,850,000 FRANCE TELECOM (Telecommunication Services, Diversified
Telecommunication Services, EUR) 7.25 01/28/2013 2,701,037
2,000,000 FRANCE TELECOM (Telecommunication Services, Diversified
Telecommunication Services, EUR) 4.75 02/21/2017 2,876,262
200,000 REXEL SA (Industrials, Trading Companies & Distributors, EUR) 8.25 12/15/2016 276,268
2,000,000 VEOLIA ENVIRONNEMENT SA (Utilities, EUR) 4.00 02/12/2016 2,725,224
8,578,791
---------------
GERMANY: 1.67%
350,000 HEIDELBERGCEMENT AG (Industrials, Building Products, EUR) 8.00 01/31/2017 465,453
1,225,000 KFW BANKENGRUPPE (Financials, Commercial Banks, AUD) 6.25 12/04/2019 1,111,450
910,000 KFW BANKENGRUPPE (Financials, Commercial Banks, EUR) 3.88 01/21/2019 1,274,469
4,139,000 KFW BANKENGRUPPE (Financials, Commercial Banks, NZD) 6.38 02/17/2015 3,159,261
4,000,000 KFW BANKENGRUPPE (Financials, Commercial Banks, EUR) 4.88 06/17/2019 4,534,480
470,000 UPC HOLDING BV (Consumer Discretionary, Media, EUR) 9.63 12/01/2019 647,698
11,192,811
---------------
IRELAND: 0.16%
400,000 ARDAGH GLASS FINANCE (Financials, Consumer Finance, EUR) 8.75 02/01/2020 538,201
400,000 SMURFIT KAPPA FUNDING PLC (Financials, Consumer Finance, EUR) 7.25 11/15/2017 531,685
1,069,886
---------------
LUXEMBOURG: 3.46%
2,330,000 EUROPEAN INVESTMENT BANK (Financials, Commercial Banks, EUR) 3.13 03/03/2017 3,142,756
8,530,000 EUROPEAN INVESTMENT BANK (Financials, Commercial Banks, AUD) 6.13 01/23/2017 7,822,104
2,300,000 EUROPEAN INVESTMENT BANK (Financials, Commercial Banks, EUR) 4.25 10/15/2014 3,289,154
1,900,000 EUROPEAN INVESTMENT BANK (Financials, Commercial Banks, EUR) 3.13 04/15/2014 2,597,191
1,000,000 HARSCO CORPORATION (Industrials, Machinery, GBP) 7.25 10/27/2010 1,581,043
3,660,000 WIND ACQUISITION FINANCE SA++ (Financials, Consumer Finance, USD) 11.75 07/15/2017 3,888,750
350,000 WIND ACQUISITION FINANCE SPA (Financials, Consumer Finance, EUR) 11.75 07/15/2017 476,627
300,000 WIND ACQUISITION FINANCE SPA (Financials, Consumer Finance, EUR) 11.00 12/01/2015 404,628
23,202,253
---------------
MEXICO: 2.14%
1,090,000 DESARROLLADORA HOMEX SAB DE CV++ (Consumer Discretionary,
Household Durables, USD) 9.50 12/11/2019 1,183,958
5,355,000 KANSAS CITY SOUTHERN DE MEXICO (Industrials, Road & Rail, USD) 7.38 06/01/2014 5,529,038
511,000 KANSAS CITY SOUTHERN DE MEXICO (Industrials, Road & Rail, USD) 12.50 04/01/2016 614,478
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
2
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
MEXICO (continued)
6,660,000 KANSAS CITY SOUTHERN DE MEXICO++ (Industrials, Road & Rail, USD) 8.00% 02/01/2018 $ 7,059,600
14,387,074
---------------
NETHERLANDS: 0.69%
335,000 CEMEX FINANCE LIMITED LIABILITY CORPORATION (Financials,
Consumer Finance, EUR) 9.63 12/14/2017 415,195
1,000,000 E.ON AG (Utilities, Diversified Telecommunication Services, USD) 5.80 04/30/2018 1,130,967
500,000 NEW WORLD RESOURCES NV (Materials, Metals & Mining, EUR) 7.38 05/15/2015 651,575
1,405,000 NXP FUNDING LIMITED LIABILITY CORPORATION (Financials, Consumer
Finance, USD) 9.50 10/15/2015 1,376,900
400,000 OWENS-ILLINOIS EUROPEAN GROUP BV (Financials, Consumer Finance,
EUR) 6.88 03/31/2017 526,473
400,000 ZIGGO BOND COMPANY BV (Consumer Discretionary, Media, EUR) 8.00 05/15/2018 530,382
4,631,492
---------------
SOUTH AFRICA: 0.05%
250,000 SAVCIO HOLDINGS LIMITED (Industrials, Machinery, EUR) 8.00 02/15/2013 322,530
---------------
SPAIN: 0.51%
800,000 INAER AVIATION FINANCE LIMITED(a) (Aerospace, Airlines, EUR) 9.50 08/01/2017 1,018,376
1,800,000 INSTITUTO DE CREDITO OFICIAL (Financials, Commercial Banks, EUR) 4.38 05/23/2012 2,419,991
3,438,367
---------------
SWITZERLAND: 0.33%
2,450,000 EUROFIMA (Financials, Commercial Banks, AUD) 6.25 12/28/2018 2,232,063
---------------
UNITED KINGDOM: 2.01%
1,100,000 BRITISH AMERICAN TOBACCO FINANCE PLC (Financials, Consumer
Finance, EUR) 5.38 06/29/2017 1,608,870
1,700,000 IMPERIAL TOBACCO GROUP PLC (Consumer Staples, Tobacco, EUR) 8.38 02/17/2016 2,742,208
335,000 INFINIS PLC (Utilities, Multi-Utilities, GBP) 9.13 12/15/2014 544,063
450,000 ISS FINANCING PLC (Financials, Consumer Finance, EUR) 11.00 06/15/2014 645,060
400,000 KERLING PLC (Materials, Chemicals, EUR) 10.63 01/28/2017 540,808
500,000 MARKS & SPENCER GROUP PLC (Consumer Discretionary, Multiline
Retail, GBP) 6.38 11/07/2011 818,085
3,000,000 NATIONAL GRID PLC (Utilities, Electric Utilities, EUR) 4.38 03/10/2020 4,005,742
700,000 NATIONWIDE BUILDING SOCIETY FRN (Financials, Thrifts &
Mortgage Finance, EUR) 3.75 01/20/2015 920,780
985,000 VEDANTA RESOURCES PLC++ (Materials, Metals & Mining, USD) 9.50 07/18/2018 1,083,500
300,000 VIRGIN MEDIA FINANCE PLC (Financials, Consumer Finance, GBP) 8.88 10/15/2019 508,451
100,000 VIRGIN MEDIA FINANCE PLC (Financials, Consumer Finance, USD) 9.13 08/15/2016 107,500
13,525,067
---------------
UNITED STATES: 50.36%
975,000 ADVANCED MICRO DEVICES INCORPORATED (Information Technology,
Semiconductors & Semiconductor Equipment, USD) 5.75 08/15/2012 979,875
1,145,000 AES CORPORATION (Utilities, Multi-Utilities, USD) 8.88 02/15/2011 1,173,625
1,980,000 ALLIANT TECHSYSTEMS INCORPORATED (Industrials, Aerospace &
Defense, USD) 6.75 04/01/2016 1,975,050
615,000 ALON REFINING KROTZ SPRINGS INCORPORATED (Energy, Oil, Gas
& Consumable Fuels, USD) 13.50 10/15/2014 604,238
3,175,000 AMERICAN ACHIEVEMENT CORPORATION (Consumer Discretionary,
Specialty Retail, USD) 8.25 04/01/2012 3,135,313
205,000 AMERICAN ACHIEVEMENT CORPORATION SENIOR DISCOUNT NOTE(oo)
(Consumer Discretionary, Specialty Retail, USD) 10.25 10/01/2012 202,950
1,025,000 AMERICAN GENERAL FINANCE CORPORATION (Financials, Consumer
Finance, USD) 6.90 12/15/2017 873,813
The accompanying notes are an integral part of these financial statements.
3
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
UNITED STATES (continued)
1,025,000 AMERISTAR CASINOS INCORPORATED (Consumer Discretionary,
Hotels, Restaurants & Leisure, USD) 9.25% 06/01/2014 $ 1,094,188
460,000 AMSTED INDUSTRIES INCORPORATED++ (Industrials, Road & Rail, USD) 8.13 03/15/2018 471,500
2,000,000 ANHEUSER-BUSCH INBEV (Consumer Staples, Beverages, USD) 6.88 11/15/2019 2,398,996
1,090,000 APRIA HEALTHCARE GROUP++ (Health Care, Health Care Providers &
Services, USD) 11.25 11/01/2014 1,166,300
6,545,000 AQUILA INCORPORATED STEP BOND(oo) (Utilities, Diversified
Telecommunication Services, USD) 11.88 07/01/2012 7,527,653
555,000 ATLAS ENERGY RESOURCES LIMITED LIABILITY CORPORATION (Energy,
Oil, Gas & Consumable Fuels, USD) 12.13 08/01/2017 641,025
600,000 BANK OF AMERICA CORPORATION (Financials, Diversified Financial
Services, EUR) 7.00 06/15/2016 889,923
820,000 BIO-RAD LABORATORIES INCORPORATED (Health Care,
Pharmaceuticals, USD) 8.00 09/15/2016 877,400
540,000 BIOMET INCORPORATED (Health Care, Health Care Equipment &
Supplies, USD) 10.38 10/15/2017 598,050
700,000 BIOMET INCORPORATED@ (Health Care, Health Care Equipment &
Supplies, USD) 11.63 10/15/2017 784,875
135,000 BOYD GAMING CORPORATION (Consumer Discretionary, Hotels,
Restaurants & Leisure, USD) 7.75 12/15/2012 135,675
110,000 BRISTOW GROUP INCORPORATED (Energy, Energy Equipment & Services,
USD) 6.13 06/15/2013 110,275
985,000 BRISTOW GROUP INCORPORATED (Energy, Energy Equipment &
Services, USD) 7.50 09/15/2017 980,075
1,310,000 CABLEVISION SYSTEMS CORPORATION (Consumer Discretionary,
Media, USD) 8.63 09/15/2017 1,406,613
905,000 CALIFORNIA STEEL INDUSTRIES INCORPORATED (Materials, Metals &
Mining, USD) 6.13 03/15/2014 873,325
2,375,000 CALPINE CORPORATION (Utilities, Independent Power Producers &
Energy Traders, USD) 7.25 10/15/2017 2,369,063
1,925,000 CAPITALSOURCE INCORPORATED++ (Financials, Commercial Banks,
USD) 12.75 07/15/2014 2,225,781
1,795,000 CARRIAGE SERVICES INCORPORATED (Consumer Discretionary,
Diversified Consumer Services, USD) 7.88 01/15/2015 1,781,538
1,945,000 CASELLA WASTE SYSTEMS INCORPORATED++ (Industrials, Commercial
Services & Supplies, USD) 11.00 07/15/2014 2,122,481
8,410,929 CCH II LIMITED LIABILITY CORPORATION (Consumer Discretionary,
Media, USD) 13.50 11/30/2016 9,987,978
500,000 CCO HOLDINGS LIMITED LIABILITY CORPORATION (Consumer
Discretionary, Media, USD) 8.13 04/30/2020 528,750
904,000 CHARTER COMMUNICATIONS INCORPORATED(oo) (Consumer Discretionary,
Media, USD) 8.00 04/30/2012 953,720
5,140,000 CHARTER COMMUNICATIONS INCORPORATED(oo) (Consumer Discretionary,
Media, USD) 10.88 09/15/2014 5,756,800
2,250,000 CHESAPEAKE ENERGY CORPORATION (Energy, Oil, Gas & Consumable
Fuels, USD) 9.50 02/15/2015 2,525,625
1,410,000 CINCINNATI BELL INCORPORATED (Telecommunication Services,
Diversified Telecommunication Services, USD) 8.25 10/15/2017 1,395,900
4,155,000 CITIZENS COMMUNICATIONS COMPANY (Telecommunication Services,
Diversified Telecommunication Services, USD) 7.88 01/15/2027 4,019,963
545,000 CLEARWATER PAPER CORPORATION++ (Materials, Paper & Forest
Products, USD) 10.63 06/15/2016 602,225
940,000 CLEARWIRE COMMUNICATIONS FINANCE CORPORATION (Financials,
Consumer Finance, USD) 12.00 12/01/2015 984,650
1,450,000 CLEARWIRE COMMUNICATIONS FINANCE CORPORATION (Financials,
Consumer Finance, USD) 12.00 12/01/2015 1,515,250
630,000 CLEAVER-BROOKS INCORPORATED (Energy, Energy Equipment &
Services, USD) 12.25 05/01/2016 622,125
55,000 CMS ENERGY CORPORATION (Utilities, Diversified
Telecommunication Services, USD) 8.75 06/15/2019 62,805
675,000 COFFEYVILLE RESOURCES (Energy, Oil, Gas & Consumable Fuels, USD) 10.88 04/01/2017 681,750
2,021,000 COMMERCIAL VEHICLE GROUP INCORPORATED++@ (Industrials,
Machinery, USD) 13.00 02/15/2013 2,036,158
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
4
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
UNITED STATES (continued)
500,000 COMMERCIAL VEHICLE GROUP INCORPORATED (Industrials, Machinery, USD) 8.00% 07/01/2013 $ 423,750
825,000 CONSOL ENERGY INCORPORATED (Energy, Oil, Gas & Consumable Fuels,
USD) 8.25 04/01/2020 886,875
1,895,000 COOPER TIRE & RUBBER COMPANY (Consumer Discretionary, Auto
Components, USD) 7.63 03/15/2027 1,705,500
815,000 CORRECTIONS CORPORATION OF AMERICA (Industrials, Commercial
Services & Supplies) 6.25 03/15/2013 827,225
620,000 CORRECTIONS CORPORATION OF AMERICA (Industrials, Commercial
Services & Supplies, USD) 7.75 06/01/2017 661,850
1,900,000 CPG INTERNATIONAL INCORPORATED (Materials, Construction Materials,
USD) 10.50 07/01/2013 1,919,000
620,000 CPG INTERNATIONAL INCORPORATED FRN (Materials, Construction
Materials, USD) 7.50 07/01/2012 601,400
1,315,000 CPM HOLDINGS INCORPORATED++ (Industrials, Machinery, USD) 10.63 09/01/2014 1,420,200
800,000 CRICKET COMMUNICATIONS INCORPORATED (Telecommunication Services,
Wireless Telecommunication Services, USD) 9.38 11/01/2014 827,000
355,000 CRICKET COMMUNICATIONS INCORPORATED (Telecommunication Services,
Wireless Telecommunication Services, USD) 7.75 05/15/2016 367,425
75,000 CROWN CASTLE INTERNATIONAL CORPORATION (Telecommunication Services,
Wireless Telecommunication Services, USD) 7.13 11/01/2019 77,813
2,475,000 DA-LITE SCREEN COMPANY INCORPORATED++ (Information Technology,
Electronic Equipment & Instruments, USD) 12.50 04/01/2015 2,487,375
75,000 DELTA AIR LINES INCORPORATED++ (Industrials, Airlines, USD) 12.25 03/15/2015 82,219
340,000 DIGITALGLOBE INCORPORATED++ (Telecommunication Services,
Diversified Telecommunication Services, USD) 10.50 05/01/2014 371,025
480,000 DISH DBS CORPORATION (Consumer Discretionary, Media, USD) 7.88 09/01/2019 510,000
1,452,000 DOLE FOOD COMPANY INCORPORATED (Consumer Staples, Food
Products, USD) 13.88 03/15/2014 1,749,660
5,060,000 DUPONT FABROS TECHNOLOGY INCORPORATED++ (Financials, Real Estate
Investment Trusts, USD) 8.50 12/15/2017 5,382,575
1,035,000 DYNEGY HOLDINGS INCORPORATED (Utilities, Multi-Utilities, USD) 6.88 04/01/2011 1,045,350
2,165,000 DYNEGY HOLDINGS INCORPORATED (Utilities, Multi-Utilities, USD) 7.63 10/15/2026 1,363,950
800,000 E*TRADE FINANCIAL CORPORATION (Financials, Capital Markets, USD) 7.38 09/15/2013 767,000
4,291,000 E*TRADE FINANCIAL CORPORATION@ (Financials, Capital Markets, USD) 12.50 11/30/2017 4,827,375
645,000 EDGEN MURRAY CORPORATION++ (Materials, Metals & Mining, USD) 12.25 01/15/2015 540,188
60,000 EDISON MISSION ENERGY (Utilities, Diversified Telecommunication
Services, USD) 7.00 05/15/2017 40,800
1,260,000 EDISON MISSION ENERGY (Utilities, Diversified Telecommunication
Services, USD) 7.20 05/15/2019 850,500
445,000 EL PASO CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 12.00 12/12/2013 531,775
800,000 EL PASO CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 7.42 02/15/2037 730,734
4,342,267 ENERGY FUTURE HOLDINGS CORPORATION FRN@ (Utilities, Diversified
Telecommunication Services, USD) 12.00 11/01/2017 2,822,474
1,010,000 EQUINIX INCORPORATED (Information Technology, Internet Software &
Services, USD) 8.13 03/01/2018 1,052,925
2,760,000 EXOPACK HOLDING CORPORATION (Materials, Containers & Packaging,
USD) 11.25 02/01/2014 2,804,850
1,180,000 FIRST DATA CORPORATION (Information Technology, IT Services, USD) 9.88 09/24/2015 949,900
3,449,903 FIRST DATA CORPORATION@ (Information Technology, IT Services, USD) 10.55 09/24/2015 2,647,801
2,535,000 FORBES ENERGY SERVICES LIMITED (Energy, Energy Equipment &
Services, USD) 11.00 02/15/2015 2,275,163
2,815,000 FORD MOTOR CREDIT COMPANY LIMITED LIABILITY CORPORATION
(Financials, Consumer Finance, USD) 9.88 08/10/2011 2,969,634
535,000 FOREST OIL CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 8.50 02/15/2014 573,788
770,000 FOREST OIL CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 7.25 06/15/2019 779,625
2,485,000 FREEPORT-MCMORAN COPPER & GOLD INCORPORATED (Materials, Metals &
Mining, USD) 8.38 04/01/2017 2,776,988
200,000 FRONTIER COMMUNICATIONS CORPORATION (Telecommunication Services,
Diversified Telecommunication Services, USD) 8.25 05/01/2014 215,000
2,345,000 FRONTIER COMMUNICATIONS CORPORATION (Telecommunication Services,
Diversified Telecommunication Services, USD) 8.13 10/01/2018 2,485,700
475,000 GENCORP INCORPORATED (Industrials, Aerospace & Defense, USD) 9.50 08/15/2013 482,125
2,000,000 GENERAL ELECTRIC CAPITAL CORPORATION (Financials, Consumer
Finance, NZD) 7.63 12/10/2014 1,533,696
1,200,000 GEO GROUP INCORPORATED++ (Industrials, Commercial Services &
Supplies, USD) 7.75 10/15/2017 1,239,000
The accompanying notes are an integral part of these financial statements.
5
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
UNITED STATES (continued)
485,000 GEOEYE INCORPORATED++ (Industrials, Aerospace & Defense, USD) 9.63% 10/01/2015 $ 509,250
1,080,000 GEORGIA PACIFIC CORPORATION++ (Materials, Paper & Forest
Products, USD) 8.88 05/15/2031 1,209,600
1,000,000 GEORGIA PACIFIC CORPORATION (Materials, Paper & Forest Products,
USD) 7.00 01/15/2015 1,038,750
59,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 6.88 09/15/2011 60,180
1,244,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 6.88 08/28/2012 1,271,990
3,620,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 7.50 12/31/2013 3,742,175
1,298,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 6.75 12/01/2014 1,291,510
2,545,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 8.00 12/31/2018 2,459,106
1,575,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 8.00 03/15/2020 1,624,219
2,684,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 8.00 11/01/2031 2,620,255
2,055,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 8.30 02/12/2015 2,162,888
810,000 GMAC LIMITED LIABILITY CORPORATION (Financials, Consumer Finance,
USD) 8.00 11/01/2031 788,120
492,000 GOODYEAR TIRE & RUBBER COMPANY (Consumer Discretionary, Auto
Components, USD) 9.00 07/01/2015 514,140
3,010,000 GOODYEAR TIRE & RUBBER COMPANY (Consumer Discretionary, Auto
Components, USD) 10.50 05/15/2016 3,371,200
95,000 GRAHAM PACKAGING COMPANY++ (Materials, Containers & Packaging,
USD) 8.25 01/01/2017 95,000
1,625,000 GULFMARK OFFSHORE INCORPORATED (Energy, Energy Equipment &
Services, USD) 7.75 07/15/2014 1,608,750
1,125,000 HARRAHS ENTERTAINMENT CORPORATION (Consumer Discretionary,
Hotels, Restaurants & Leisure, USD) 11.25 06/01/2017 1,215,000
500,000 HARRAHS ENTERTAINMENT CORPORATION (Consumer Discretionary,
Hotels, Restaurants & Leisure, USD) 12.75 04/15/2018 486,250
515,000 HARRAHS ENTERTAINMENT CORPORATION (Consumer Discretionary,
Hotels, Restaurants & Leisure, USD) 10.00 12/15/2018 433,244
820,000 HCA INCORPORATED (Health Care, Health Care Providers & Services,
USD) 7.88 02/01/2011 830,250
2,945,000 HCA INCORPORATED (Health Care, Health Care Providers & Services,
USD) 9.25 11/15/2016 3,180,600
1,331,000 HCA INCORPORATED@ (Health Care, Health Care Providers & Services,
USD) 9.63 11/15/2016 1,437,480
1,635,000 HEADWATERS INCORPORATED (Materials, Construction Materials, USD) 11.38 11/01/2014 1,659,525
1,810,000 HERCULES OFFSHORE INCORPORATED (Energy, Energy Equipment &
Services, USD) 10.50 10/15/2017 1,619,950
1,440,000 HEXCEL CORPORATION (Industrials, Aerospace & Defense, USD) 6.75 02/01/2015 1,425,600
1,895,000 HOLLY CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 9.88 06/15/2017 1,973,169
1,326,601 HOMER CITY FUNDING LIMITED LIABILITY CORPORATION (Financials,
Consumer Finance, USD) 8.73 10/01/2026 1,207,207
2,345,000 HORNBECK OFFSHORE SERVICES INCORPORATED SERIES B (Energy, Energy
Equipment & Services, USD) 6.13 12/01/2014 2,104,638
2,065,000 HORNBECK OFFSHORE SERVICES INCORPORATED SERIES B (Energy, Energy
Equipment & Services, USD) 8.00 09/01/2017 1,933,356
235,000 HOST HOTELS & RESORTS LP++ (Financials, Real Estate Investment
Trusts, USD) 9.00 05/15/2017 257,913
370,000 HSBC FINANCE CORPORATION (Financials, Consumer Finance, GBP) 7.00 03/27/2012 616,062
1,260,000 HUNTSMAN INTERNATIONAL LIMITED LIABILITY CORPORATION++
(Materials, Chemicals, USD) 5.50 06/30/2016 1,159,200
3,170,000 INDALEX HOLDINGS CORPORATION#### (Materials, Metals & Mining, USD) 11.50 02/01/2014 37,327
910,000 INN OF THE MOUNTAIN GODS RESORT & CASINO####(i) (Consumer
Discretionary, Hotels, Restaurants & Leisure, USD) 12.00 11/15/2049 391,300
1,240,000 INTCOMEX INCORPORATED (Information Technology, Electronic
Equipment & Instruments, USD) 13.25 12/15/2014 1,317,500
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
6
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
UNITED STATES (continued)
295,000 INTERFACE INCORPORATED CLASS A (Industrials, Commercial
Services & Supplies, USD) 11.38% 11/01/2013 $ 333,350
950,000 INTERNATIONAL BANK FOR RECONSTRUCTION & DEVELOPMENT
(Financials, Commercial Banks, AUD) 5.75 02/17/2015 875,019
1,265,000 INTERNATIONAL LEASE FINANCE CORPORATION (Financials, Consumer
Finance, USD) 4.75 01/13/2012 1,220,725
1,800,000 INTERNATIONAL LEASE FINANCE CORPORATION (Financials, Consumer
Finance, USD) 5.30 05/01/2012 1,746,000
460,000 INTERNATIONAL LEASE FINANCE CORPORATION (Financials, Consumer
Finance, USD) 6.38 03/25/2013 446,200
900,000 INTERNATIONAL LEASE FINANCE CORPORATION++ (Financials,
Consumer Finance, USD) 8.63 09/15/2015 915,750
705,000 INTERNATIONAL LEASE FINANCE CORPORATION (Financials, Consumer
Finance, USD) 5.75 06/15/2011 697,950
1,230,000 IPAYMENT INCORPORATED (Information Technology, IT Services,
USD) 9.75 05/15/2014 1,126,988
1,357,019 IPCS INCORPORATED FRN (Telecommunication Services, Wireless
Telecommunication Services, USD) 3.59 05/01/2014 1,268,813
600,000 IRON MOUNTAIN INCORPORATED (Industrials, Commercial Services &
Supplies, EUR) 6.75 10/15/2018 748,660
1,385,000 IRON MOUNTAIN INCORPORATED (Industrials, Commercial Services &
Supplies, EUR) 8.38 08/15/2021 1,471,563
5,275,000 JABIL CIRCUIT INCORPORATED (Information Technology, Electronic
Equipment & Instruments, USD) 8.25 03/15/2018 5,749,750
3,745,000 JBS USA FINANCE INCORPORATED (Financials, Consumer Finance,
USD) 11.63 05/01/2014 4,316,113
349,000 KANSAS CITY SOUTHERN DE MEXICO (Industrials, Road & Rail, USD) 13.00 12/15/2013 420,981
55,000 KANSAS CITY SOUTHERN DE MEXICO (Industrials, Road & Rail, USD) 8.00 06/01/2015 58,644
1,485,000 KEMET CORPORATION++ (Information Technology, Electronic
Equipment & Instruments, USD) 10.50 05/01/2018 1,514,700
1,140,000 KRATOS DEFENSE & SECURITY SOLUTIONS INCORPORATED (Industrials,
Aerospace & Defense, USD) 10.00 06/01/2017 1,181,325
2,115,000 L-3 COMMUNICATIONS HOLDINGS INCORPORATED (Industrials,
Aerospace & Defense, USD) 5.88 01/15/2015 2,157,277
2,784,000 L-3 COMMUNICATIONS HOLDINGS INCORPORATED (Industrials,
Aerospace & Defense, USD) 6.38 10/15/2015 2,853,600
2,800,000 LBI ESCROW CORPORATION++ (Financials, Consumer Finance, USD) 8.00 11/01/2017 2,943,500
60,000 LENNAR CORPORATION (Consumer Discretionary, Household
Durables, USD) 12.25 06/01/2017 68,850
2,655,000 LEUCADIA NATIONAL CORPORATION (Financials, Consumer Finance,
USD) 8.13 09/15/2015 2,761,200
2,010,000 LEVEL 3 FINANCING INCORPORATED++ (Financial Services, Consumer
Finance, USD) 10.00 02/01/2018 1,831,613
525,000 LIN TELEVISION CORPORATION (Consumer Discretionary, Media, USD) 8.38 04/15/2018 539,438
1,145,000 LUCENT TECHNOLOGIES INCORPORATED (Information Technology,
Communications Equipment, USD) 2.88 06/15/2025 1,014,756
1,285,000 LUCENT TECHNOLOGIES INCORPORATED (Information Technology,
Communications Equipment, USD) 6.45 03/15/2029 867,375
1,465,000 METROPCS COMMUNICATIONS INCORPORATED (Telecommunication
Services, Wireless Telecommunication Services, USD) 9.25 11/01/2014 1,530,925
780,000 MGM MIRAGE (Consumer Discretionary, Hotels, Restaurants &
Leisure, USD) 8.50 09/15/2010 781,950
500,000 MGM MIRAGE (Consumer Discretionary, Hotels, Restaurants &
Leisure, USD) 6.63 07/15/2015 418,750
2,295,000 MGM MIRAGE (Consumer Discretionary, Hotels, Restaurants &
Leisure, USD) 11.38 03/01/2018 2,168,775
3,614,632 MIRANT MID-ATLANTIC LIMITED LIABILITY CORPORATION SERIES C
(Utilities, Diversified Telecommunication Services, USD) 10.06 12/30/2028 3,917,358
2,325,000 MIRANT NORTH AMERICA LIMITED LIABILITY CORPORATION (Utilities,
Diversified Telecommunication Services, USD) 7.38 12/31/2013 2,391,844
560,000 MORGAN STANLEY (Financials, Capital Markets, GBP) 5.38 11/14/2013 909,783
800,000 MURRAY ENERGY CORPORATION (Energy, Oil, Gas & Consumable
Fuels, USD) 10.25 10/15/2015 828,000
375,000 MYLAN INCORPORATED (Health Care, Pharmaceuticals, USD) 7.63 07/15/2017 398,438
1,965,000 NEW COMMUNICATIONS HOLDINGS (Consumer Discretionary, Media,
USD) 8.25 04/15/2017 2,097,638
1,910,000 NEW COMMUNICATIONS HOLDINGS (Consumer, Discretionary, Media,
USD) 8.50 04/15/2020 2,038,925
The accompanying notes are an integral part of these financial statements.
7
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
UNITED STATES (continued)
3,000,000 NEW COMMUNICATIONS HOLDINGS (Consumer Discretionary, Media, USD) 8.75% 04/15/2022 $ 3,217,500
55,000 NIELSEN FINANCIAL LLC SENIOR DISCOUNT NOTE(oo) (Financials,
Consumer Finance, USD) 12.50 08/01/2016 53,625
490,000 NRG ENERGY INCORPORATED (Utilities, Independent Power Producers &
Energy Traders, USD) 7.25 02/01/2014 502,250
1,325,000 NRG ENERGY INCORPORATED (Utilities, Independent Power Producers &
Energy Traders, USD) 7.38 01/15/2017 1,341,563
1,615,000 NRG ENERGY INCORPORATED (Utilities, Independent Power Producers &
Energy Traders, USD) 8.50 06/15/2019 1,695,750
965,000 OMEGA HEALTHCARE INVESTORS INCORPORATED (Financials, Real Estate
Investment Trusts, USD) 7.00 04/01/2014 978,269
500,000 OMEGA HEALTHCARE INVESTORS INCORPORATED (Financials, Real Estate
Investment Trusts, USD) 7.00 01/15/2016 507,500
1,000,000 OMNICARE INCORPORATED (Health Care, Health Care Providers &
Services, USD) 6.88 12/15/2015 1,040,000
1,835,000 OTTER TAIL CORPORATION (Industrials, Industrial Conglomerates, USD) 9.00 12/15/2016 1,912,988
1,865,000 OXFORD INDUSTRIES INCORPORATED (Consumer Discretionary, Textiles,
Apparel & Luxury Goods, USD) 11.38 07/15/2015 2,088,800
460,000 PARKER DRILLING COMPANY (Energy, Energy Equipment & Services, USD) 9.13 04/01/2018 457,700
3,435,000 PEABODY ENERGY CORPORATION (Energy, Oil, Gas & Consumable Fuels,
USD) 7.88 11/01/2026 3,611,044
495,000 PETROHAWK ENERGY CORPORATION (Energy, Oil, Gas & Consumable Fuels,
USD) 10.50 08/01/2014 551,925
790,000 PETROHAWK ENERGY CORPORATION (Energy, Oil, Gas & Consumable Fuels,
USD) 7.88 06/01/2015 817,650
900,000 PFIZER INCORPORATED (Health Care, Pharmaceuticals, EUR) 5.35 03/15/2015 1,028,815
1,200,000 PFIZER INCORPORATED (Health Care, Pharmaceuticals, EUR) 4.75 06/03/2016 1,727,713
3,300,000 PHI INCORPORATED (Energy, Energy Equipment & Services, USD) 7.13 04/15/2013 3,151,500
1,250,000 PINNACLE ENTERTAINMENT INCORPORATED++ (Consumer Discretionary,
Hotels, Restaurants & Leisure, USD) 7.50 06/15/2015 1,212,500
685,000 PINNACLE FOODS FINANCE LIMITED LIABILITY CORPORATION (Financials,
Consumer Finance, USD) 9.25 04/01/2015 708,119
1,220,000 PIONEER NATURAL RESOURCES COMPANY (Energy, Oil, Gas & Consumable
Fuels, USD) 7.50 01/15/2020 1,313,354
2,885,000 PLAINS EXPLORATION & PRODUCTION COMPANY (Energy, Oil, Gas &
Consumable Fuels, USD) 8.63 10/15/2019 3,065,313
15,000 PNM RESOURCES INCORPORATED (Utilities, Multi-Utilities, USD) 9.25 05/15/2015 15,994
280,000 POKAGON GAMING AUTHORITY (Consumer Discretionary, Hotels,
Restaurants & Leisure, USD) 10.38 06/15/2014 291,550
605,000 PROSPECT MEDICAL HOLDINGS INCORPORATED (Health Care, Health Care
Providers & Services, USD) 12.75 07/15/2014 647,350
1,740,000 PROVIDENT FUNDING ASSOCIATES LIMITED PARTNERSHIP++ (Financials,
Thrifts & Mortgage Finance, USD) 10.25 04/15/2017 1,774,800
280,000 PUBLIC SERVICE COMPANY OF NEW MEXICO (Telecommunication Services,
Diversified Telecommunication Services, USD) 7.95 05/15/2018 297,307
390,000 QVC INCORPORATED (Consumer Discretionary, Internet & Catalog
Retail, USD) 7.50 10/01/2019 401,700
2,875,000 QWEST CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 8.88 03/15/2012 3,108,594
230,000 QWEST CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 7.63 08/03/2021 225,975
1,370,000 QWEST CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 7.50 06/15/2023 1,373,425
1,040,000 QWEST CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 7.25 09/15/2025 1,037,400
300,000 QWEST CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 6.88 07/15/2028 267,000
795,000 QWEST CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 7.13 11/15/2043 739,350
850,000 RAILAMERICA INCORPORATED (Industrials, Road & Rail, USD) 9.25 07/01/2017 920,125
450,000 RELIANT ENERGY INCORPORATED (Utilities, Multi-Utilities, USD) 7.63 06/15/2014 452,250
3,309,000 RELIANT ENERGY INCORPORATED (Utilities, Multi-Utilities, USD) 6.75 12/15/2014 3,391,725
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
UNITED STATES (continued)
1,226,246 RELIANT ENERGY INCORPORATED (Utilities, Multi-Utilities, USD) 9.24% 07/02/2017 $ 1,275,295
410,000 RELIANT ENERGY INCORPORATED (Utilities, Multi-Utilities, USD) 9.68 07/02/2026 427,425
400,000 ROCKWOOD SPECIALTIES GROUP INCORPORATED (Materials, Chemicals,
EUR) 7.63 11/15/2014 531,685
2,265,000 SABINE PASS LNG LIMITED PARTNERSHIP (Energy, Oil, Gas &
Consumable Fuels, USD) 7.25 11/30/2013 2,112,113
350,000 SABLE INERNATIONAL FINANCE LIMITED++ (Telecommunication
Services, Diversified Telecommunication Services, USD) 7.75 02/15/2017 355,250
585,000 SAKS INCORPORATED (Consumer Discretionary, Multiline Retail,
USD) 9.88 10/01/2011 620,100
1,315,000 SALEM COMMUNICATIONS (Consumer Discretionary, Media, USD) 9.63 12/15/2016 1,390,613
2,640,000 SANDRIDGE ENERGY INCORPORATED++ (Energy, Oil, Gas & Consumable
Fuels, USD) 8.75 01/15/2020 2,692,800
700,000 SBA TELECOMMUNICATIONS INCORPORATED++ (Telecommunication
Services, Diversified Telecommunication Services, USD) 8.00 08/15/2016 752,500
485,000 SCIENTIFIC GAMES CORPORATION (Consumer Discretionary, Hotels,
Restaurants & Leisure, USD) 9.25 06/15/2019 514,100
68,000 SEALY CORPORATION (Consumer Discretionary, Household Durables,
USD) 10.88 04/15/2016 76,160
205,000 SENECA GAMING CORPORATION (Consumer Discretionary, Hotels,
Restaurants & Leisure, USD) 7.25 05/01/2012 201,925
475,000 SERVICE CORPORATION INTERNATIONAL (Consumer Discretionary,
Diversified Consumer Services, USD) 8.00 11/15/2021 495,188
3,965,000 SERVICE CORPORATION INTERNATIONAL (Consumer Discretionary,
Diversified Consumer Services, USD) 7.50 04/01/2027 3,578,413
1,355,000 SGS INTERNATIONAL INCORPORATED (Industrials, Commercial
Services & Supplies, USD) 12.00 12/15/2013 1,388,875
1,110,000 SHINGLE SPRINGS TRIBAL GAMING AUTHORITY (Consumer
Discretionary, Hotels, Restaurants & Leisure, USD) 9.38 06/15/2015 910,200
1,490,000 SMITHFIELD FOODS INCORPORATED (Consumer Staples, Food Products,
USD) 7.00 08/01/2011 1,516,075
1,370,000 SMITHFIELD FOODS INCORPORATED (Consumer Staples, Food Products,
USD) 10.00 07/15/2014 1,530,975
470,000 SOUTHWESTERN ENERGY COMPANY (Energy, Oil, Gas & Consumable
Fuels, USD) 7.50 02/01/2018 526,400
950,000 SPEEDWAY MOTORSPORTS INCORPORATED (Consumer Discretionary,
Hotels, Restaurants & Leisure, USD) 8.75 06/01/2016 1,008,188
2,420,000 SPRINT CAPITAL CORPORATION (Financials, Consumer Finance, USD) 8.38 03/15/2012 2,565,200
6,460,000 SPRINT CAPITAL CORPORATION (Financials, Consumer Finance, USD) 6.88 11/15/2028 5,620,200
1,055,000 SPRINT NEXTEL CORPORATION (Telecommunication Services, Wireless
Telecommunication Services, USD) 6.90 05/01/2019 1,006,206
4,085,000 SPRINT NEXTEL CORPORATION SERIES D (Telecommunication Services,
Wireless Telecommunication Services, USD) 7.38 08/01/2015 4,044,150
2,695,000 SPRINT NEXTEL CORPORATION SERIES F (Telecommunication Services,
Wireless Telecommunication Services, USD) 5.95 03/15/2014 2,593,938
635,000 STALLION OILFIELD HOLDINGS INCORPORATED++ (Energy, Oil, Gas &
Consumable Fuels, USD) 10.50 02/15/2015 625,475
395,000 STONE ENERGY CORPORATION (Energy, Oil, Gas & Consumable Fuels,
USD) 8.63 02/01/2017 374,756
2,890,000 STONEMOR PARTNERS LIMITED PARTNERSHIP (Consumer Discretionary,
Diversified Consumer Services, USD) 10.25 12/01/2017 3,063,400
250,000 STRATUS TECHNOLOGIES INCORPORATED++ (Information Technology,
Computers & Peripherals, USD) 12.00 03/29/2015 218,125
520,000 TALECRIS BIOTHERAPEUTICS HOLDINGS COMPANY++ (Health Care,
Biotechnology, USD) 7.75 11/15/2016 559,000
1,135,000 TELESAT CANADA INCORPORATED (Telecommunication Services,
Wireless Telecommunication Services, USD) 11.00 11/01/2015 1,299,575
1,805,000 TERREMARK WORLDWIDE INCORPORATED++ (Information Technology,
Internet Software & Services, USD) 12.00 06/15/2017 2,057,700
990,000 TESORO CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 7.50 07/17/2012 948,549
615,000 TESORO CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 6.50 06/01/2017 593,475
945,000 TESORO CORPORATION (Energy, Oil, Gas & Consumable Fuels, USD) 9.75 06/01/2019 1,025,325
1,140,000 TEXAS INDUSTRIES INCORPORATED (Materials, Construction
Materials, USD) 7.25 07/15/2013 1,159,950
430,000 TICKETMASTER ENTERTAINMENT INCORPORATED (Consumer
Discretionary, Internet & Catalog Retail, USD) 10.75 08/01/2016 455,800
1,000,000 TXU ENERGY COMPANY, LLC (Utilities, Electric Utilities, USD) 8.00 10/10/2014 774,330
The accompanying notes are an integral part of these financial statements.
9
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
UNITED STATES (continued)
650,000 UNISYS CORPORATION++ (Information Technology, IT Services, USD) 12.75% 10/15/2014 $ 741,000
510,000 UNISYS CORPORATION++ (Information Technology, IT Services, USD) 14.25 09/15/2015 596,700
460,000 UNISYS CORPORATION (Information Technology, IT Services, USD) 12.50 01/15/2016 502,550
520,000 UNITED MARITIME GROUP++ (Industrials, Transportation
Infrastructure, USD) 11.75 06/15/2015 516,100
1,208,925 UNIVERSAL CITY DEVELOPMENT LIMITED FRN (Consumer Discretionary,
Hotels, Restaurants & Leisure, USD) 7.75 10/29/2014 1,211,947
859,000 VENTAS INCORPORATED (Financials, Real Estate Investment Trusts,
USD) 9.00 05/01/2012 910,447
1,285,000 VIASYSTEM GROUP INCORPORATED++ (Information Technology, Electronic
Equipment & Instruments, USD) 12.00 01/15/2015 1,399,044
1,495,000 VISANT CORPORATION (Consumer Discretionary, Textiles, Apparel &
Luxury Goods, USD) 7.63 10/01/2012 1,496,869
465,000 WEST CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 9.50 10/15/2014 475,463
2,330,000 WINDSTREAM CORPORATION (Telecommunication Services, Diversified
Telecommunication Services, USD) 7.88 11/01/2017 2,370,775
635,000 WYLE SERVICES CORPORATION++ (Industrials, Aerospace & Defense, USD) 10.50 04/01/2018 647,700
425,000 XM SATELLITE RADIO HOLDINGS INCORPORATED (Consumer Discretionary,
Media, USD) 13.00 08/01/2014 481,313
940,000 YOUNG BROADCASTING INCORPORATED#### (Consumer Discretionary,
Media, USD) 10.00 03/01/2011 9
1,526,000 YOUNG BROADCASTING INCORPORATED#### (Consumer Discretionary,
Media, USD) 8.75 01/15/2014 15
338,113,551
---------------
TOTAL CORPORATE BONDS & NOTES (COST $452,605,890) 474,818,307
---------------
FOREIGN GOVERNMENT BONDS(f): 18.27%
3,900,000 AUSTRALIA SERIES 124 (AUD) 5.75 05/15/2021 3,669,039
6,650,000 AUSTRALIA SERIES 25CI (AUD) 3.00 09/20/2025 6,354,909
8,500,000 BRAZIL (BRL) 12.50 01/05/2022 5,515,479
700,000 CAISSE D'AMORTISSEMENT DE LA DETTE SOCIALE (EUR) 4.25 04/25/2020 990,778
6,900,000 CANADA (CAD) 3.75 06/01/2019 7,086,116
6,900,000 CANADA SERIES 23 (CAD) 4.10 12/15/2018 7,093,701
3,875,000 FRANCE (EUR) 3.50 04/25/2020 5,282,753
2,055,222 FRANCE (EUR) 2.25 07/25/2020 2,958,946
4,225,000 GERMANY (EUR) 4.25 07/04/2017 6,214,079
6,000,000 GERMANY (EUR) 3.25 01/04/2020 8,226,581
2,505,000 GERMANY (EUR) 4.25 07/04/2039 3,799,981
1,229,400,000 HUNGARY (HUF) 6.75 02/24/2017 5,513,122
2,850,000,000 KOREA (KRW) 5.25 09/10/2015 2,496,998
4,635,000,000 KOREA (KRW) 5.25 03/10/2027 4,017,252
20,250,000 MALAYSIA (MYR) 3.84 08/12/2015 6,458,674
69,905,000 MEXICO (MXN) 9.50 12/18/2014 6,307,426
1,475,000 NETHERLANDS (EUR) 3.75 01/15/2023 2,055,333
4,350,000 NETHERLANDS (EUR) 4.00 01/15/2037 6,225,145
7,205,000 NEW ZEALAND (NZD) 6.00 12/15/2017 5,529,040
28,730,000 NORWAY (NOK) 4.25 05/19/2017 5,151,785
16,950,000 POLAND (PLN) 5.50 04/25/2015 5,536,204
1,425,000 SLOVENIA (EUR) 4.63 09/09/2024 1,993,144
8,125,000 UNITED KINGDOM (GBP) 4.75 03/07/2020 14,221,886
TOTAL FOREIGN GOVERNMENT BONDS (COST $121,163,545) 122,698,371
---------------
MORTGAGE-BACKED SECURITIES: 32.66%
COLLATERALIZED MORTGAGE OBLIGATIONS: 1.46%
4,696,141 AMERICAN HOME MORTGAGE ASSETS SERIES 2006-2 CLASS 1A1 1.36 09/25/2046 2,499,775
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
1,340,000 BANC OF AMERICA COMMERCIAL MORTGAGE INCORPORATED SERIES
2006-03 CLASS AM 5.81% 07/10/2044 $ 1,133,104
1,820,000 GREENWICH CAPITAL COMMERCIAL FUNDING CORPORATION SERIES
2006-GG7 CLASS AM 5.89 07/10/2038 1,601,253
3,570,000 LEHMAN XS TRUST SERIES 2006-18N CLASS A5A 0.50 12/25/2036 1,255,169
1,866,000 MORGAN STANLEY CAPITAL I TRUST SERIES 2006-IQ12 CLASS AM 5.37 12/15/2043 1,582,465
810,000 MORGAN STANLEY CAPITAL I TRUST SERIES 2006-IQ12 CLASS AMFX 5.37 12/15/2043 683,432
1,220,000 WACHOVIA BANK COMMERCIAL MORTGAGE TRUST SERIES 2006-C23 CLASS AM 5.47 01/15/2045 1,065,119
9,820,317
---------------
MORTGAGE BACKED SECURITIES: 31.20%
571,371 FHLB 3.01 11/01/2030 597,291
297,826 FHLB 3.11 07/01/2033 310,385
8,151,231 FHLB 2.86 12/01/2034 8,489,073
3,702,182 FHLB 2.88 06/01/2035 3,884,442
83,242 FHLMC 8.50 04/01/2015 86,752
60,813 FHLMC 4.53 06/01/2018 60,837
4,570 FHLMC 4.07 05/01/2019 4,672
78,206 FHLMC 3.59 10/01/2022 80,459
50,625 FHLMC 2.88 10/01/2024 52,899
86,858 FHLMC 3.43 12/01/2026 88,553
205,804 FHLMC 5.34 01/01/2027 217,321
162,405 FHLMC 8.50 07/01/2028 189,882
94,007 FHLMC 8.50 03/01/2030 105,086
463,222 FHLMC 3.12 08/01/2030 483,517
22,706 FHLMC 2.94 10/01/2030 23,429
375,807 FHLMC 2.97 10/01/2030 394,106
463,566 FHLMC 2.81 07/01/2032 480,678
579,560 FHLMC 2.87 09/01/2032 605,302
244,114 FHLMC 2.98 06/01/2033 254,115
213,953 FHLMC 2.90 10/01/2033 223,328
16,361,858 FHLMC 2.81 04/01/2034 16,906,215
574,644 FHLMC 5.05 07/01/2035 609,080
6,230,272 FHLMC 2.77 08/01/2035 6,518,097
6,083,538 FHLMC 2.68 09/01/2035 6,326,234
3,519,178 FHLMC 5.01 12/01/2035 3,639,994
5,618,296 FHLMC 3.00 01/01/2036 5,831,868
4,184,159 FHLMC 3.56 06/01/2036 4,299,290
3,248,699 FHLMC 4.26 10/01/2037 3,333,612
3,925,570 FHLMC 2.97 01/01/2038 4,087,346
8,109,467 FHLMC 3.30 09/01/2038 8,332,029
110,696 FHLMC SERIES 0196 CLASS A 1.18 12/15/2021 110,769
2,874,693 FHLMC SERIES 1383 5.85 02/01/2037 3,064,514
111,266 FHLMC SERIES 2390 CLASS FD 0.79 12/15/2031 111,528
139,122 FHLMC SERIES 2411 CLASS F 0.89 02/15/2032 139,823
4,832,879 FHLMC SERIES 2431 CLASS F 0.84 03/15/2032 4,851,758
244,983 FHLMC SERIES 2567 CLASS FH 0.74 02/15/2033 245,204
289,961 FNMA 6.11 12/01/2013 294,761
29,718 FNMA 3.66 01/01/2015 30,544
26,988 FNMA 12.00 01/01/2016 30,237
9,817 FNMA 3.75 12/01/2016 10,127
52,007 FNMA 3.25 01/01/2017 53,552
1,795,865 FNMA 3.35 02/01/2017 1,855,082
2,164,910 FNMA 3.07 04/01/2017 2,236,117
195,259 FNMA 7.50 07/01/2017 213,951
769,198 FNMA 3.13 12/01/2017 794,162
8,934 FNMA 2.13 04/01/2019 8,976
109,091 FNMA 6.14 12/01/2020 113,763
7,134 FNMA 6.00 05/01/2021 7,482
10,114 FNMA 6.00 08/01/2021 10,584
14,243 FNMA 5.11 12/01/2022 15,063
The accompanying notes are an integral part of these financial statements.
11
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
MORTGAGE BACKED SECURITIES (continued)
163,958 FNMA 2.54% 06/01/2024 $ 170,523
239,441 FNMA 5.21 11/01/2024 254,066
24,998 FNMA 8.00 12/01/2024 25,445
117,528 FNMA 5.27 04/01/2025 117,625
267,986 FNMA 2.94 01/01/2026 281,515
38,189 FNMA 2.97 07/01/2026 40,133
121,594 FNMA 2.83 12/01/2026 127,345
233,256 FNMA 5.92 08/01/2027 233,953
190,170 FNMA 3.15 09/01/2027 199,006
49,417 FNMA 7.50 09/01/2027 56,328
111,884 FNMA 1.48 04/01/2028 114,663
75,612 FNMA 3.62 08/01/2028 78,312
15,095 FNMA 7.50 10/01/2028 15,167
171,021 FNMA 7.50 11/01/2028 197,292
45,822 FNMA 2.62 12/01/2028 45,950
194,737 FNMA 2.72 06/01/2029 203,316
114,439 FNMA 3.81 10/01/2029 117,981
60,160 FNMA 2.85 12/01/2029 63,115
71,098 FNMA 3.82 01/01/2030 74,459
137,932 FNMA 7.50 02/01/2030 156,910
243,761 FNMA 2.73 05/01/2030 253,595
132,585 FNMA 8.00 06/01/2030 149,756
106,625 FNMA 3.42 07/01/2030 109,983
255,231 FNMA 3.02 08/01/2030 266,842
108,674 FNMA 7.50 09/01/2030 120,673
706,908 FNMA 4.61 04/01/2031 745,571
102,478 FNMA 2.82 06/01/2031 106,563
72,245 FNMA 2.60 12/01/2031 75,207
23,690 FNMA 7.50 07/01/2032 26,951
205,159 FNMA 2.86 09/01/2032 215,507
3,151,736 FNMA 6.44 09/01/2032 3,259,540
68,199 FNMA 6.50 11/01/2032 76,388
169,307 FNMA 2.73 03/01/2033 176,482
138,256 FNMA 2.99 04/01/2033 143,757
198,229 FNMA 6.00 04/01/2033 218,984
79,698 FNMA 2.63 07/01/2033 81,866
486,390 FNMA 4.95 01/01/2034 500,996
632,140 FNMA 3.52 03/01/2034 653,441
20,240 FNMA 4.51 03/01/2034 21,080
5,303,112 FNMA 2.59 04/01/2034 5,580,687
3,592,227 FNMA 4.88 04/01/2034 3,699,455
299,325 FNMA 1.81 10/01/2034 308,416
12,380,225 FNMA 2.90 10/01/2034 12,913,961
1,545,482 FNMA 4.89 12/01/2034 1,612,076
402,302 FNMA 2.73 02/01/2035 420,651
6,591,491 FNMA 4.41 02/01/2035 6,825,373
6,206,004 FNMA 2.53 03/01/2035 6,472,439
3,738,259 FNMA 2.95 05/01/2035 3,894,971
3,319,902 FNMA 3.22 08/01/2035 3,462,701
1,993,680 FNMA 2.35 10/01/2035 2,041,428
2,626,261 FNMA 2.38 12/01/2035 2,656,512
3,106,187 FNMA 2.63 01/01/2036 3,232,880
1,950,342 FNMA 5.38 02/01/2036 2,048,719
2,532,661 FNMA 2.90 04/01/2036 2,594,889
12,562,087 FNMA 3.12 05/01/2036 13,136,748
1,054,294 FNMA 3.26 05/01/2036 1,084,502
2,244,597 FNMA 2.88 07/01/2036 2,345,651
3,150,681 FNMA 2.58 08/01/2036 3,214,543
51,012 FNMA 4.66 12/01/2036 53,321
2,800,455 FNMA 6.13 09/01/2037 3,023,836
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
INTEREST
PRINCIPAL SECURITY NAME RATE MATURITY DATE VALUE
--------------- ------------------------------------------------------------------ -------- ------------- ---------------
MORTGAGE BACKED SECURITIES (continued)
4,114,013 FNMA 3.13% 01/01/2038 $ 4,188,666
257,221 FNMA 2.62 07/01/2038 267,930
2,866,069 FNMA 2.73 07/01/2038 2,994,160
2,868,334 FNMA 3.82 07/01/2038 2,977,037
6,970,335 FNMA 2.68 08/01/2039 7,243,157
361,591 FNMA 2.75 07/01/2048 376,656
63,750 FNMA SERIES 1996-46 CLASS FA 0.84 08/25/2021 64,036
811,227 FNMA SERIES 2001-25 CLASS Z 6.00 06/25/2031 899,137
39,701 FNMA SERIES 2001-35 CLASS F 0.93 07/25/2031 39,974
39,970 FNMA SERIES 2001-57 CLASS F 0.83 06/25/2031 40,122
296,997 FNMA SERIES 2001-T10 CLASS A2 7.50 12/25/2041 339,783
251,797 FNMA SERIES 2002-77 CLASS FH 0.74 12/18/2032 251,999
6,038,321 FNMA SERIES 2002-95 CLASS FK 0.83 01/25/2033 6,057,424
91,322 FNMA SERIES 2002-97 CLASS FR 0.88 01/25/2033 91,778
1,476,533 FNMA SERIES 2003-W8 CLASS 3F2 0.68 05/25/2042 1,473,758
76,728 FNMA SERIES G91-16 CLASS F 0.79 06/25/2021 76,952
143,297 FNMA SERIES G92-17 CLASS F 1.39 03/25/2022 146,118
34,347 GNMA 7.25 01/15/2018 37,901
45,360 GNMA 7.25 07/15/2017 50,022
55,187 GNMA 7.25 08/15/2017 60,421
67,604 GNMA 7.25 08/15/2017 74,288
18,026 GNMA 7.25 08/15/2017 19,879
68,730 GNMA 7.25 09/15/2017 75,795
88,054 GNMA 7.25 10/15/2017 96,779
145,166 GNMA 7.25 10/15/2017 159,550
47,675 GNMA 7.25 11/15/2017 52,067
36,317 GNMA 7.25 01/15/2018 40,291
37,000 GNMA 7.25 02/15/2018 40,785
19,094 GNMA 7.25 05/15/2018 20,771
85,088 GNMA 6.50 06/15/2028 96,016
35,311 GNMA SERIES 2001-61 CLASS FA 0.84 09/20/2030 35,325
209,502,511
---------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $218,453,010) 219,322,828
---------------
SHARES
---------------
COMMON STOCKS: 0.16%
CONSUMER DISCRETIONARY: 0.00%
HOTELS, RESTAURANTS & LEISURE: 0.00%
1,161 TRUMP ENTERTAINMENT RESORTS INCORPORATED(a) 0
---------------
INDUSTRIALS: 0.00%
PROFESSIONAL SERVICES: 0.00%
5,153 STRATUS SERVICES GROUP (a) 0
---------------
MATERIALS: 0.16%
CHEMICALS: 0.16%
16,428 LYONDELLBASELL INDUSTRIES NV CLASS A 295,704
44,890 LYONDELLBASELL INDUSTRIES NV CLASS B 808,020
---------------
TOTAL COMMON STOCKS (COST $818,910) 1,103,724
---------------
The accompanying notes are an integral part of these financial statements.
13
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
SHARES SECURITY NAME VALUE
--------------- ------------------------------------------------------------------ ---------------
PREFERRED STOCKS: 0.12%
FINANCIALS: 0.12%
CONSUMER FINANCE: 0.12% YIELD
955 ALLY FINANCIAL INCORPORATED 8.30% 784,264
---------------
INDUSTRIALS: 0.00%
PROFESSIONAL SERVICES: 0.00% YIELD
1,173 STRATUS SERVICES GROUP (a) 0.00% $ 0
---------------
TOTAL PREFERRED STOCKS (COST $761,713) 784,264
---------------
INTEREST
PRINCIPAL RATE MATURITY DATE
--------------- ------------------------------------------------------------------ -------- -------------
TERM LOANS: 6.63%
CONSUMER DISCRETIONARY: 1.37%
$ 1,050,000 CAPITAL AUTOMOTIVE 0.00% 12/14/2012 979,997
3,813,737 METALDYNE CORPORATION FRN 13.00 04/09/2014 3,870,943
2,755,000 NEWSDAY LIMITED LIABILITY CORPORATION 10.50 07/15/2013 2,885,863
1,215,000 SUGARHOUSE HSP GAMING PROPERTIES LIMITED PARTNERSHIP FRN 11.25 09/11/2014 1,167,408
390,970 TOWER AUTOMOTIVE HOLDINGS FRN 4.63-4.81 07/31/2013 310,821
9,215,032
---------------
CONSUMER STAPLES: 0.42%
2,994,416 MERISANT COMPANY FRN 7.50 01/08/2014 2,799,779
---------------
ENERGY: 0.68%
4,632,248 SEMGROUP ENERGY PARTNERS FRN 8.25 07/20/2012 4,566,609
---------------
FINANCIALS: 1.93%
7,935,000 CIT GROUP INCORPORATED 13.00 05/01/2013 7,855,650
1,245,000 CIT GROUP INCORPORATED 13.00 05/01/2014 1,210,763
278,992 REALOGY CORPORATION 3.38 09/01/2014 243,700
1,036,256 REALOGY CORPORATION FRN 3.35 09/01/2014 905,170
2,848,489 SAINT ACQUISITION CORPORATION FRN 8.61 06/05/2014 2,765,398
12,980,681
---------------
INDUSTRIALS: 0.14%
613,750 NEFF CORPORATION FRN 4.04 05/31/2013 593,294
260,000 SWIFT TRANSPORTATION COMPANY INCORPORATED++ 12.50 05/15/2017 256,100
105,000 SWIFT TRANSPORTATION COMPANY INCORPORATED FRN++ 8.25 05/15/2015 97,650
947,044
---------------
MATERIALS: 1.49%
9,263,820 LYONDELL CHEMICAL COMPANY 11.00 05/01/2018 9,970,187
---------------
TELECOMMUNICATION SERVICES: 0.60%
6,150,398 FAIRPOINT COMMUNICATIONS INCORPORATED FRN<#### NA 03/08/2015 4,023,898
---------------
TOTAL TERM LOANS (COST $42,652,240) 44,503,230
---------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
PORTFOLIO OF INVESTMENTS -- JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
SHARES SECURITY NAME VALUE
--------------- ------------------------------------------------------------------ ---------------
CLOSED END MUTUAL FUNDS: 0.37%
CLOSED-END FUNDS: 0.37%
123,344 DREYFUS HIGH YIELD STRATEGIES FUND INCORPORATED 535,313
53,764 EATON VANCE LIMITED DURATION INCOME TRUST 867,751
16,391 LMP CORPORATE LOAN FUND INCORPORATED 184,399
90,309 NEW AMERICA HIGH INCOME FUND INCORPORATED 880,513
2,467,976
---------------
TOTAL CLOSED END MUTUAL FUNDS (COST $1,315,137) 2,467,976
---------------
SHARES SECURITY NAME YIELD VALUE
--------------- ------------------------------------------------------------------ -------- ---------------
SHORT-TERM INVESTMENTS: 4.24%
INVESTMENT COMPANIES: 4.24%
28,453,264 WELLS FUNDS ADVANTAGE MONEY MARKET TRUST(u)(l) 0.31% $ 28,453,264
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $28,453,264) 28,453,264
---------------
TOTAL INVESTMENTS IN SECURITIES
(COST $866,223,709)* 133.17% $ 894,151,964
OTHER ASSETS AND LIABILITIES, NET (33.17) (222,728,171)
------ ---------------
TOTAL NET ASSETS 100.00% $ 671,423,793
------ ---------------
++ Securities that may be resold to "qualified institutional buyers" under
rule 144A or securities offered pursuant to section 4(2) of the Securities
Act of 1933, as amended.
(u) Rate shown is the 7-day annualized yield at period end.
(l) Investment in an affiliate.
< All or portion of the position represents an unfunded loan commitment.
(oo) Stepped coupon bond. Interest rate presented is yield to maturity.
@ Payment-in-kind (PIK) securities are securities 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.
#### This security is currently in default with regards to scheduled interest
and/or principal payments.
(a) Security fair valued in accordance with the procedures approved by the
Board of Trustees.
(f) Foreign bond principal is denominated in local currency.
* Cost for federal income tax purposes is $869,767,708 and net unrealized
appreciation (depreciation) consists of:
Gross unrealized appreciation $ 39,866,971
Gross unrealized depreciation (15,482,715)
------------
Net unrealized appreciation $ 24,384,256
The accompanying notes are an integral part of these financial statements.
15
WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND (FORMERLY, EVERGREEN MULTI-SECTOR
INCOME FUND)
NOTES TO PORTFOLIO OF INVESTMENTS JULY 31, 2010 (UNAUDITED) SECURITIES VALUATION
Certain fixed income securities with maturities exceeding 60 days are valued by
using a pricing service approved by the Trust's Board of Trustees. This service
uses market prices as quoted by an independent pricing service or by dealers in
these securities when, in the service's judgment, these prices are readily
available and are representative of the securities' fair values. For some
securities, such prices are not readily available. These securities will
generally be fair valued using methods which may include consideration of yields
or prices of securities of comparable quality, coupon rate, maturity and type of
issue, indications as to values from dealers in securities, trading
characteristics and general market conditions.
Investments in securities are valued each business day as of the close of
regular trading on the New York Stock Exchange, which is usually 4:00 p.m.
(Eastern Time). Securities which are traded on a national or foreign securities
exchange are valued at the last reported sales price. Securities listed on The
NASDAQ Stock Market, Inc. ("NASDAQ") are valued at the NASDAQ Official Closing
Price ("NOCP"), and if no NOCP is available, then at the last reported sales
price. If no sales price is shown on the NASDAQ, the bid price will be used. In
the absence of any sale of securities listed on the NASDAQ, and in the case of
other securities, including U.S. Government obligations, but excluding debt
securities maturing in 60 days or less, the price will be deemed "stale" and the
valuations will be determined in accordance with the Funds' Fair Valuation
Procedures.
Investments in open-end mutual funds 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 by procedures established in good
faith and approved by the Board of Trustees.
The valuation techniques used by the Funds to measure fair value are consistent
with the market approach, income approach and/or cost approach, where
applicable, for each security type.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Assets,
including investment securities, and liabilities denominated in foreign currency
are translated into U.S. dollars at the prevailing rates of exchange at the date
of valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting in changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the changes
in net assets resulting from changes in market prices of securities at fiscal
period-end are not separately presented. Such changes are recorded with net
realized and unrealized gain from investments. Gains and loses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS
Certain Funds may be subject to foreign currency exchange rate risk in the
normal course of pursuing its investment objectives. A forward foreign currency
contract is an agreement between two parties to purchase or sell a specific
currency for an agreed-upon price at a future date. The Fund enters into forward
foreign currency contracts to facilitate transactions in foreign-denominated
securities and to attempt to minimize the risk to the Fund from adverse changes
in the relationship between currencies. Forward foreign currency contracts are
recorded at the forward rate and marked-to-market daily. When the contracts are
closed, realized gains and losses arising from such transactions are recorded as
realized gains or losses on foreign currency related transactions. The Fund
could be exposed to risks if the counterparties to the contracts are unable to
meet the terms of their contracts or if the value of the foreign currency
changes unfavorably. The Fund's maximum risk of loss from counterparty credit
risk is the unrealized gains or losses on the contracts. This risk is mitigated
by having a master netting arrangement between the Fund and the counterparty.
TERM LOANS
Each Fund may invest in term loans. A Fund records an investment when the
borrower withdraws money and records interest as earned. These loans pay
interest at rates which are periodically reset by reference to a base lending
rate plus a spread. The Fund assumes the credit risk of the borrower. There
could be potential loss to the Fund in the event of default by the borrower.
WHEN-ISSUED TRANSACTIONS
Each Fund may purchase securities on a forward commitment or 'when-issued'
basis. A Fund records a when-issued
transaction on the trade date and will segregate assets to cover its obligation
by confirming the availability of qualifying assets having a value sufficient to
make payment for the securities purchased. 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.
VALUATION HIERARCHY
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 securities are not necessarily an
indication of the risk associated with investing in those securities.
As of July 31, 2010, the inputs used in valuing the Fund's assets, which are
carried at fair value, were as follows:
SIGNIFICANT
OTHER SIGNIFICANT
QUOTED OBSERVABLE UNOBSERVABLE
PRICES INPUTS INPUTS
INVESTMENTS IN SECURITIES (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
-------------------------------- ----------- ------------ ------------ ------------
EQUITY SECURITIES
COMMON STOCKS $ 1,103,724 $ 0 $ 0 $ 1,103,724
PREFERRED STOCKS 0 784,264 0 784,264
CLOSED END MUTUAL FUND SHARES 2,467,976 0 0 2,467,976
CORPORATE BONDS & NOTES 0 474,818,307 0 474,818,307
FOREIGN BONDS - GOVERNMENT 0 122,698,371 0 122,698,371
LOANS 0 36,923,735 7,579,495 44,503,230
MORTGAGE BACKED SECURITIES 0 219,322,828 0 219,322,828
INVESTMENT COMPANIES 28,453,264 0 0 28,453,264
----------- ------------ ----------- ------------
$32,024,964 $854,547,505 $7,579,495 $894,151,964
----------- ------------ ----------- ------------
As of July 31, 2010, the inputs used in valuing the Fund's other financial
instruments, which are carried at fair value, were as follows:
SIGNIFICANT
OTHER SIGNIFICANT
QUOTED OBSERVABLE UNOBSERVABLE
PRICES INPUTS INPUTS
OTHER FINANCIAL INSTRUMENTS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
---------------------------------- --------- ----------- ------------ ---------
FORWARD FOREIGN CURRENCY CONTRACTS $0 $(153,181) $0 $(153,181)
The following is a reconciliation of assets in which significant unobservable
inputs (Level 3) were used in determining fair value:
CORPORATE COMMON
BONDS & NOTES STOCKS LOANS TOTAL
------------- ----------- ----------- -----------
Balance as of October 31, 2009 $ 376,052 $ 3,014,385 $11,927,339 $15,317,776
Realized gains or losses (347,002) (671,839) 646,032 (372,809)
Change in unrealized
gains or losses (524,273) 1,346,974 (110,489) 712,212
Amortization 1,608 0 470,683 472,291
Net purchases (sales) 493,615 (3,689,520) (1,954,870) (5,150,775)
Transfers in and/or
out of Level 3 0 0 (3,399,200) (3,399,200)
---------- ----------- ----------- -----------
Balance as of July 31, 2010 $ 0 $ 0 $ 7,579,495 $ 7,579,495
---------- ----------- ----------- -----------
Change in unrealized gains
or losses included in
earnings relating to
securities still held at
July 31, 2010 $ 0 $ 0 $ 164,238 $ 164,238
---------- ----------- ----------- -----------
DERIVATIVE TRANSACTIONS
At July 31, 2010, the Fund had forward foreign currency exchange contracts
outstanding as follows:
Unrealized
Exchange U.S. Value at Appreciation
Date Contracts to Receive July 31, 2010 In Exchange for U.S. $ (Depreciation)
---------- -------------------- ------------- ---------------------- --------------
10/29/2010 1,095,000,000 JPY $12,677,065 $12,502,711 $174,354
Forward Foreign Currency Exchange Contracts to Buy:
U.S. Value U.S. Value Unrealized
Contracts to at July 31, at July 31, Appreciation
Exchange Date Receive 2010 In Exchange for 2010 (Depreciation)
------------- ----------------- ------------ ----------------- ----------- --------------
8/18/2010 1,274,000,000 HUF $ 6,040,781 522,131,148 JPY $ 5,837,382 $ 203,399
8/18/2010 17,485,000 PLN 5,753,392 497,290,885 JPY 5,699,932 53,460
8/23/2010 5,100,000 AUD 4,475,836 386,850,300 JPY 4,603,834 (127,998)
8/23/2010 6,610,000 AUD 5,768,303 498,559,250 JPY 5,966,930 (198,627)
8/23/2010 8,425,000 EUR 10,825,381 935,646,800 JPY 11,010,099 (184,718)
8/23/2010 306,000,000 JPY 3,570,210 2,731,948 EUR 3,540,403 29,807
8/25/2010 1,240,315 AUD 1,055,775 91,250,000 JPY 1,119,389 (63,614)
8/25/2010 11,830,000 AUD 10,686,080 923,591,760 JPY 10,676,621 9,459
9/1/2010 3,456,690 CAD 3,540,664 306,000,000 JPY 3,361,213 179,451
9/1/2010 10,730,000 CAD 10,580,460 914,410,600 JPY 10,433,628 146,832
9/15/2010 1,370,000 GBP 2,190,978 1,676,600 EUR 2,149,308 41,670
9/15/2010 3,555,000 GBP 5,610,779 4,293,530 EUR 5,577,219 33,560
9/15/2010 7,785,000 GBP 12,345,943 9,447,472 EUR 12,213,404 132,539
10/1/2010 1,581,514 EUR 2,083,310 180,000,000 JPY 2,066,655 16,655
10/1/2010 10,056,062 EUR 12,580,878 1,087,000,000 JPY 13,140,833 (559,955)
10/13/2010 16,023,166 NZD 11,529,028 996,000,000 JPY 11,568,483 (39,455)
The Fund had average contract amounts of $112,030,177 and $13,401,887 in forward
foreign currency exchange contracts to buy and forward foreign currency exchange
contracts to sell, respectively, for the period from November 1, 2009 through
July 31, 2010.
During the nine months ended July 31, 2010, the Fund entered into forward
foreign currency exchange contracts for hedging purposes.
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 changes in the Fund's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
or in other factors that occurred during the registrant's last fiscal quarter
that has materially affected or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Wells Fargo Advantage Multi-Sector Income Fund
By: /s/ Karla M. Rabusch
Karla M. Rabusch
President
Date: September 28, 2010
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 28, 2010
By: /s/ Kasey Phillips
Kasey Phillips
Treasurer
Date: September 28, 2010