N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21507

Wells Fargo Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: October 31

Date of reporting period: October 31, 2017

ITEM 1. REPORT TO STOCKHOLDERS

2

Annual Report

October 31, 2017

Wells Fargo Multi-Sector Income Fund (ERC)

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Contents

Letter to shareholders	2
Performance highlights	6
Portfolio of investments	10
Financial statements
Statement of assets and liabilities	31
Statement of operations	32
Statement of changes in net assets	33
Statement of cash flows	34
Financial highlights	35
Notes to financial statements	36
Report of independent registered public accounting firm	42
Other information	43
Automatic dividend reinvestment plan	50
List of abbreviations	51

The views expressed and any forward-looking statements are as of October 31, 2017, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

Andrew Owen

President

Wells Fargo Funds

Global stocks generally delivered double-digit results; bond markets had smaller but positive results as well.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Multi-Sector Income Fund for the 12-month period that ended October 31, 2017. Global stocks generally delivered double-digit results; bond markets had smaller but positive results as well. U.S. and international stocks performed similarly overall with returns of 23.63% and 23.64%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively. Within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.90% and the Bloomberg Barclays Municipal Bond Index⁴ returned 2.19% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the last two months of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory in November, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 0.75%. The fourth quarter also saw the implementation of the U.S. Securities and Exchange Commission’s amended rule for money market funds, which included the possibility of liquidity fees and redemption gates and, for institutional prime and municipal money market funds, floating net asset values (NAVs). Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. In the U.S., hiring remained strong, and business and consumer sentiment improved. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside the U.S., stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets because they benefited from both global

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

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

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

⁴  The Bloomberg Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

economic growth and recent weakening of the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, Fed officials raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it planned to start selling bonds that accumulated on its balance sheet during quantitative easing programs conducted since 2008.

As global growth improved in the third quarter of 2017, financial markets generally advanced.

Most stock markets worldwide moved higher during the quarter and ended the period at or near all-time highs. Moderate acceleration in global economic growth was supported by improving corporate earnings, low inflation pressure, and still-low interest rates. Corporate earnings reports were favorable overall as companies continued to benefit from healthy operating leverage. Global commodity prices climbed during the quarter. Oil prices rebounded, partly due to a better balance between supply and demand. While North Korea’s recent missile launches and nuclear testing raised serious concerns around the world, the heightened geopolitical risk had relatively minimal impact on the quarter’s stock returns. In the U.S., economic data released during the quarter reflected a generally healthy economy. Second-quarter economic output grew at a 3.1% annual rate, and consumers displayed more willingness to spend. Meanwhile, the Fed maintained the target range for the federal funds rate at 1.00% to 1.25%, noting that inflation had remained below the Fed’s 2.00% objective. Reflecting continued confidence in the U.S. economy, the Fed also stated the possibility of one more 0.25% increase in the federal funds rate by the end of 2017 and announced plans to begin the process of unwinding its $4.5 trillion portfolio of bonds and other assets in October. Outside the U.S., stocks in the Asia Pacific region benefited from solid earnings reports and investors’ willingness to take on risk despite the rising tensions between North Korea and the U.S. In Europe, markets were supported by better-than-expected economic growth, which has led to narrowing of the gap between Europe’s growth rate and that of the U.S. In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. Also, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

Positive economic and market news continued into October.

October proved to be a strong month for U.S. stocks. The S&P 500 Index delivered 11 record closes amid rising consumer confidence and signs the economy was continuing to gain momentum, including news in late October that economic output was estimated to have grown at a 3.0% annual rate in the third quarter. At its October meeting, the Fed, in a unanimous vote, left short-term interest rates unchanged but signaled it could make another rate increase before the end of 2017 if the economy remains on track. The Fed also began the process of unwinding its quantitative easing program. Outside the U.S., international stocks generally delivered positive results in October as global economic growth continued to strengthen.

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

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

Notice to shareholders

On November 23, 2016, the Fund announced the commencement of a managed distribution plan, which began with the monthly distribution declared in January 2017, that provides for the declaration of monthly distributions to common shareholders of the Fund at an annual minimum fixed rate of 9% based on the Fund’s average monthly NAV per share over the prior 12 months. Under the managed distribution plan, monthly distributions may be sourced from income, paid-in capital, and/or capital gains, if any. To the extent that sufficient investment income is not available on a monthly basis, the Fund may distribute paid-in capital and/or capital gains, if any, in order to maintain its managed distribution level. You should not draw any conclusions about the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the managed distribution plan. Shareholders may elect to reinvest distributions received pursuant to the managed distribution plan in the Fund under the existing dividend reinvestment plan, which is described later in this report.

On November 10, 2017, the Fund announced the reinstatement of its open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund may repurchase up to 10% of its outstanding shares in open market transactions during the period beginning on January 1, 2018 and ending on December 31, 2018. The Fund’s Board of Trustees has delegated to Wells Fargo Funds Management, LLC, the Fund’s adviser, discretion to administer the Buyback Program including the determination of the amount and timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations.

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

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

Investment objective

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

Strategy summary

The Fund allocates its assets between three separate investment strategies, or sleeves. Under normal market conditions, the Fund will allocate approximately 30%-70% of its total assets to a sleeve consisting of non-investment-grade (high yield) corporate debt, including floating-rate high yield bank loan securities; approximately 10%-40% to a sleeve of foreign debt securities, including emerging market debt; and approximately 10%-30% to a sleeve of adjustable-rate and fixed-rate mortgage-backed securities, and investment-grade corporate bonds.

Adviser

Wells Fargo Funds Management, LLC

Subadvisers

First International Advisors, LLC

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Michael Lee

Niklas Nordenfelt, CFA^®

Tony Norris

Alex Perrin

Phillip Susser

Christopher Wightman

Peter Wilson

Noah Wise

Average annual total returns (%) as of October 31, 2017¹

	1 year		5 year		10 year
Based on market value		13.07		4.07		7.89
Based on net asset value (NAV) per share		9.39		5.42		7.33
Multi-Sector Income Blended Index2		6.76		3.81		5.65

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

The Fund’s expense ratio for the year ended October 31, 2017, was 1.68% which includes 0.61% of interest expense.

Comparison of NAV vs. market value³

The Fund is leveraged through a revolving credit facility. The use of leverage results in certain risks, including, among others, the likelihood of greater volatility of net asset value and the market value of common shares. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. Derivatives involve additional risks, including interest-rate risk, credit risk, the risk of improper valuation, and the risk of non-correlation to the relevant instruments that they are designed to hedge or closely track. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The Fund is exposed to mortgage- and asset-backed securities risk. This closed-end fund is no longer available as an initial public offering and is only offered through broker/dealers on the secondary market.

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo Multi-Sector Income Fund 7

MANAGERS’ DISCUSSION

The Fund’s return based on market value was 13.07% for the 12-month period that ended October 31, 2017. During the same period, the Fund’s return based on its net asset value (NAV) was 9.39%. Based on its NAV return, the Fund outperformed the Multi-Sector Income Blended Index, which returned 6.76%.

Overview

Looking back, there was a stark difference between late 2016 and year-to-date 2017. Bond markets were weak and volatile at the end of 2016 amid investor expectations for progrowth, higher-inflation fiscal policies. The U.S. dollar traded strongly into year-end 2016 but subsequently lost ground in 2017. Bond yields, particularly on longer-dated debt, peaked in early 2017 and then trended lower. Smaller and emerging markets—both bonds and currencies—were strong performers during the first 10 months of 2017 after faring poorly in late 2016.

During the reporting period, U.S. investment-grade corporate bonds outperformed comparable-duration U.S. Treasuries in all but two months. BBB-rated bonds in particular performed well. Within securitized sectors, both nonagency commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS) had positive results, with lower-rated segments posting the strongest results.

The Fund seeks a high level of current income consistent with limiting its overall exposure to interest-rate risk. The Fund’s main investments include three principal fixed-income sectors: mortgage/corporate bonds, high-yield bonds, and international/emerging markets bonds.

Ten largest holdings (%) as of October 31, 20174
Mexico, 8.00%, 11-07-2047	2.38
Malaysia, 4.23%, 6-30-2031	2.37
Republic of South Africa, 10.50%, 12-21-2026	2.35
LPL Holdings Incorporated, 5.75%, 9-15-2025	2.09
Indonesia, 7.88%, 4-15-2019	2.03
Indonesia, 8.38%, 9-15-2026	1.78
NGPL PipeCo LLC, 7.77%, 12-15-2037	1.64
Colombia, 7.50%, 8-26-2026	1.58
Republic of South Africa, 7.75%, 2-28-2023	1.42
India, 7.80%, 4-11-2021	1.39

Credit quality as of October 31, 2017⁵

Contributors

Credit-quality allocation helped results. The Fund’s overweight allocation to BBB-rated debt, the best-performing credit tier, was a significant contributor. An allocation to high-yield debt also added to returns. Within high yield, security selection within the cable/satellite, electric utilities, pipelines, and retail industries benefited performance; an underweight to wirelines and nonallocation to supermarkets, which are sectors that underperformed the broader high-yield market, contributed positively as well. Sector allocation to securitized holdings generally added value during the reporting period, with CMBS being the largest contributor within the mortgage area. Senior RMBS and asset-backed securities also contributed because credit performance in these sectors remained strong. Issue selection within the financial sector’s property and casualty companies contributed to results as did selection within industrial sector metals and mining companies. Holdings in noncorporate credit sectors, such as agencies and supranationals, also helped performance.

The Fund was helped by exposure to higher-yielding bond markets in Asia and Latin America. Within Asia, exposure to Indonesia and Malaysia was increased and both performed well. A new position in India was added because it offered

diversification as well as an attractive yield. Brazil added to performance before its downgrade to below investment grade necessitated its sale. Elsewhere in Latin America, allocations to Mexico and Colombia have been increased. Exposure to Hungary has added value.

Detractors

Fund holdings in certain RMBS and CMBS positions modestly detracted from performance during the period due to security-specific prepayment and credit-rating changes. Fund holdings within health care real estate investment trusts

Please see footnotes on page 9.

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

and health insurance companies underperformed. Given the strong performance of the high-yield market, there were few sectors within this portion of the Fund that did not contribute to its total return. Relative detractors within the Fund’s high-yield portion included overweights to and security selection within the financial, oil-field services, and technology industries and an underweight to and security selection within the energy exploration and production sector. Certain allocations within Latin America hurt results. Mexican assets were particularly hard-hit in November 2016 but have recovered somewhat in 2017. South African debt has been challenged by the increased risk of further credit-rating downgrades ahead of the 54th national conference of the ruling African National Conference this December. Exposure to the New Zealand dollar weighed on Fund performance.

Outlook

We expect continued modest economic growth, which has been supported by persistent job growth. In addition, economic growth rates have converged to a modestly stable and positive rate across major developed countries, which hasn’t been the case for some time. In terms of monetary policy, the U.S. Federal Reserve (Fed) continues to communicate that it expects to gradually normalize monetary policy. The Fed also has emphasized that reducing its balance sheet will be done gradually and methodically. Meanwhile, U.S. fiscal policy is unlikely to produce much stimulus in the near term.

Amid moderate economic growth and some improvement in underlying credit fundamentals, we are seeking strategies that offer income while reducing risk. We expect to remain short duration because we think the Fed will raise the federal funds rate more than what is priced into the market. On the credit front, we are selective about adding credit and may reduce allocations because credit spreads are near historically narrow differences. On the other hand, should spreads widen, we expect to add to these sectors. We are maintaining our overweight in the BBB-rated portion of the market based on both interest rates and supportive fundamentals. Within securitized sectors, we remain focused on shorter-duration cash flows in the senior part of the capital structure as credit fundamentals remain stable. We may add to emerging markets debt from countries that have improving fundamentals and attractive valuations. The higher real yields and lower debt levels offered by many smaller economies continue to argue in favor of an allocation to bonds in those countries. Looking ahead, we see scope for a further unwind of the multiyear U.S. dollar rally. Geopolitical risk has been rising and needs to be watched, but so far this is having little impact on longer-term investor positioning.

Effective maturity distribution as of October 31, 2017⁶

Country allocation as of October 31, 2017⁶

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo Multi-Sector Income Fund 9

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

²  Source: Wells Fargo Funds Management, LLC. The Multi-Sector Income Blended Index is composed of 60% ICE BofAML U.S. Cash Pay High Yield Index (formerly known as BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index), 18% J.P. Morgan GBI-EM Global Diversified Composite Index, 7.5% Bloomberg Barclays Credit Bond Index, 7.5% Bloomberg Barclays U.S. Securitized Index, and 7% J.P. Morgan Global Government Bond Index (ex U.S.). The ICE BofAML U.S. Cash Pay High Yield Index tracks the performance of U.S. dollar-denominated below investment grade corporate debt, currently in a coupon paying period, that is publicly issued in the U.S. domestic market. The J.P. Morgan GBI-EM Global Diversified Composite Index is an unmanaged index of debt instruments of 31 emerging countries. The Bloomberg Barclays Credit Bond Index is an unmanaged index of fixed income securities composed of securities from the Bloomberg Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The Bloomberg Barclays U.S. Securitized Index is an unmanaged composite of asset-backed securities, collateralized mortgage-backed securities (ERISA-eligible), and fixed-rate mortgage-backed securities. The J.P. Morgan Global Government Bond Index (ex U.S.) measures the total return from investing in 12 developed government bond markets: Australia, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, and the U.K. You cannot invest directly in an index.

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

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

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

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

10 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 1.70%
FHLMC (5 Year Treasury Constant Maturity +2.06%) ±		3.56	%		9-1-2032	$	979,452	$	1,016,207
FHLMC		8.50			7-1-2028		40,118		46,338
FHLMC Series 1383 (1 Year Treasury Constant Maturity +2.25%) ±		2.95			2-1-2037		240,842		253,594
FHLMC Series 196 Class A (1 Month LIBOR +0.80%) ±		2.04			12-15-2021		10,874		10,956
FHLMC Series 2011-K16 Class B 144A±±		4.60			11-25-2046		1,000,000		1,065,574
FHLMC Series 2011-K701 Class B 144A±±		4.06			7-25-2048		165,000		164,750
FHLMC Series 2012-K17 Class B 144A±±		4.34			12-25-2044		675,000		713,354
FHLMC Series 2012-K18 Class B 144A±±		4.26			1-25-2045		810,000		852,767
FHLMC Series 2012-K706 Class B 144A±±		4.03			11-25-2044		500,000		506,819
FHLMC Series 2012-K706 Class C 144A±±		4.03			11-25-2044		805,000		814,216
FHLMC Series 2012-K707 Class B 144A±±		3.88			1-25-2047		930,000		943,842
FHLMC Series 2012-K711 Class B 144A±±		3.56			8-25-2045		264,000		268,573
FHLMC Series 2013-K30 Class B 144A±±		3.56			6-25-2045		700,000		712,463
FHLMC Series 2390 Class FD (1 Month LIBOR +0.45%) ±		1.69			12-15-2031		19,532		19,604
FHLMC Series 2567 Class FH (1 Month LIBOR +0.40%) ±		1.64			2-15-2033		60,030		60,072
FHLMC Series K007 Class X1 ±±(c)		1.22			4-25-2020		779,396		16,512
FHLMC Series K016 Class X1 ±±(c)		1.53			10-25-2021		365,774		18,302
FHLMC Series K020 Class X1 ±±(c)		1.43			5-25-2022		6,475,960		344,938
FNMA (6 Month LIBOR +1.64%) ±		3.02			9-1-2037		256,234		269,895
FNMA		6.00			4-1-2033		61,518		63,629
FNMA		7.50			2-1-2030		25,231		25,421
FNMA		7.50			9-1-2030		32,469		32,849
FNMA Series 1996-46 Class FA (1 Month LIBOR +0.50%) ±		1.74			8-25-2021		6,609		6,614
FNMA Series 1997-20 Class IO ±±(c)		1.84			3-25-2027		638,874		17,147
FNMA Series 2001-25 Class Z		6.00			6-25-2031		105,467		116,186
FNMA Series 2001-35 Class F (1 Month LIBOR +0.60%) ±		1.84			7-25-2031		5,068		5,146
FNMA Series 2001-57 Class F (1 Month LIBOR +0.50%) ±		1.74			6-25-2031		5,102		5,130
FNMA Series 2002-77 Class FH (1 Month LIBOR +0.40%) ±		1.64			12-18-2032		37,011		37,035
FNMA Series 2002-97 Class FR (1 Month LIBOR +0.55%) ±		1.79			1-25-2033		8,582		8,694
FNMA Series G91-16 Class F (1 Month LIBOR +0.45%) ±		1.69			6-25-2021		6,715		6,747
FNMA Series G92-17 Class F (1 Month LIBOR +1.05%) ±		2.29			3-25-2022		32,019		32,439
GNMA		6.50			6-15-2028		25,915		28,687
GNMA		7.25			1-15-2018		252		252
GNMA		7.25			2-15-2018		412		412
GNMA		7.25			5-15-2018		973		974
Total Agency Securities (Cost $8,088,668)									8,486,138
Asset-Backed Securities: 0.77%
CVS Pass-Through Trust Series T		6.04			12-10-2028		497,813		560,675
Five Guys Funding LLC Series 17-1A Class A2 144A		4.60			7-25-2047		997,500		1,019,428
MMAF Equipment Finance LLC Series 2017-AA Class A4 144A		2.41			8-16-2024		170,000		169,546
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2 (1 Month LIBOR +1.00%) ±		2.24			5-20-2030		611,495		614,723
Navient SLM Student Loan Series 2005-B Class A3 (3 Month LIBOR +0.27%) ±		1.59			12-15-2023		71,139		71,158
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) 144A±‡		2.25			5-21-2027		700,000		700,000
Social Professional Loan Program Series 2017-A Class A2B 144A		2.40			3-26-2040		750,000		742,768
Total Asset-Backed Securities (Cost $3,878,318)									3,878,298

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 11

Security name	Interest rate			Maturity date		Shares		Value
Common Stocks: 0.04%
Energy: 0.04%
Oil, Gas & Consumable Fuels: 0.04%
SilverBow Resources Incorporated †							8,665	$	194,876
Materials: 0.00%
Chemicals: 0.00%
LyondellBasell Industries NV Class A							9		932
Total Common Stocks (Cost $1,895,755)									195,808
						Principal
Corporate Bonds and Notes: 69.86%
Consumer Discretionary: 12.51%
Auto Components: 1.22%
Allison Transmission Incorporated 144A		4.75	%		10-1-2027	$	625,000		631,250
Allison Transmission Incorporated 144A		5.00			10-1-2024		2,250,000		2,345,625
Cooper Tire & Rubber Company		7.63			3-15-2027		1,710,000		1,957,950
Cooper Tire & Rubber Company		8.00			12-15-2019		550,000		607,750
Goodyear Tire & Rubber Company		8.75			8-15-2020		468,000		545,220
									6,087,795
Distributors: 0.21%
LKQ Corporation		4.75			5-15-2023		900,000		924,750
Spectrum Brands Incorporated		6.63			11-15-2022		125,000		129,935
									1,054,685
Diversified Consumer Services: 1.16%
Service Corporation International		7.50			4-1-2027		3,400,000		4,075,750
Service Corporation International		7.63			10-1-2018		680,000		714,000
Service Corporation International		8.00			11-15-2021		850,000		998,750
									5,788,500
Hotels, Restaurants & Leisure: 0.63%
CCM Merger Incorporated 144A		6.00			3-15-2022		2,700,000		2,808,000
Pinnacle Entertainment Incorporated		5.63			5-1-2024		325,000		335,563
									3,143,563
Internet & Direct Marketing Retail: 0.16%
Expedia Incorporated		5.95			8-15-2020		750,000		819,919
Leisure Products: 0.01%
Vista Outdoor Incorporated		5.88			10-1-2023		25,000		25,813
Media: 7.32%
Altice US Finance I Corporation 144A		5.38			7-15-2023		1,395,000		1,454,288
Altice US Finance I Corporation 144A		5.50			5-15-2026		1,275,000		1,326,000
CBS Radio Incorporated 144A		7.25			11-1-2024		45,000		47,081

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

12 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
CCO Holdings LLC 144A		4.00	%		3-1-2023	$	100,000	$	101,438
CCO Holdings LLC 144A		5.00			2-1-2028		150,000		148,875
CCO Holdings LLC		5.13			2-15-2023		100,000		103,250
CCO Holdings LLC 144A		5.13			5-1-2027		450,000		453,938
CCO Holdings LLC		5.25			9-30-2022		1,250,000		1,287,500
CCO Holdings LLC 144A		5.38			5-1-2025		4,150,000		4,305,625
CCO Holdings LLC 144A		5.50			5-1-2026		215,000		220,375
CCO Holdings LLC 144A		5.75			2-15-2026		3,375,000		3,528,056
CCO Holdings LLC 144A		5.88			4-1-2024		1,250,000		1,331,250
Cequel Communications Holdings LLC 144A		7.75			7-15-2025		2,030,000		2,217,775
Cinemark USA Incorporated		4.88			6-1-2023		325,000		331,094
CSC Holdings LLC		7.88			2-15-2018		1,000,000		1,015,120
CSC Holdings LLC		8.63			2-15-2019		383,000		410,289
EMI Music Publishing 144A		7.63			6-15-2024		525,000		587,344
Gray Television Incorporated 144A		5.13			10-15-2024		450,000		448,740
Gray Television Incorporated 144A		5.88			7-15-2026		3,875,000		3,971,875
Interpublic Group of Companies		4.00			3-15-2022		750,000		786,216
Lamar Media Corporation		5.38			1-15-2024		375,000		393,750
Lamar Media Corporation		5.88			2-1-2022		690,000		708,113
Live Nation Entertainment Incorporated 144A		4.88			11-1-2024		1,400,000		1,448,538
National CineMedia LLC		6.00			4-15-2022		1,725,000		1,759,500
Nexstar Broadcasting Group Incorporated 144A		5.63			8-1-2024		850,000		872,313
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		950,000		985,625
Outfront Media Capital Corporation		5.63			2-15-2024		20,000		21,050
Outfront Media Capital Corporation		5.88			3-15-2025		775,000		821,016
Salem Media Group Incorporated 144A		6.75			6-1-2024		2,150,000		2,246,750
The E.W. Scripps Company 144A		5.13			5-15-2025		2,385,000		2,450,588
Time Warner Cable Incorporated		4.00			1-15-2022		750,000		787,965
									36,571,337
Multiline Retail: 0.12%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		600,000		594,422
Specialty Retail: 1.58%
Advance Auto Parts Incorporated		4.50			1-15-2022		600,000		634,161
Asbury Automotive Group Incorporated		6.00			12-15-2024		1,175,000		1,239,625
Lithia Motors Incorporated 144A		5.25			8-1-2025		445,000		466,694
Penske Auto Group Incorporated		3.75			8-15-2020		540,000		550,800
Penske Auto Group Incorporated		5.38			12-1-2024		2,150,000		2,203,750
Penske Auto Group Incorporated		5.75			10-1-2022		1,155,000		1,191,463
Sonic Automotive Incorporated		5.00			5-15-2023		849,000		832,020
Sonic Automotive Incorporated		6.13			3-15-2027		775,000		800,188
									7,918,701
Textiles, Apparel & Luxury Goods: 0.10%
Wolverine World Wide Company 144A		5.00			9-1-2026		500,000		499,375

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Consumer Staples: 1.62%
Beverages: 0.27%
Anheuser-Busch InBev Finance Incorporated		3.75	%		1-15-2022	$	600,000	$	633,309
Cott Beverages Incorporated 144A		5.50			4-1-2025		675,000		696,094
									1,329,403
Food Products: 1.21%
B&G Foods Incorporated		4.63			6-1-2021		300,000		306,000
B&G Foods Incorporated		5.25			4-1-2025		1,050,000		1,072,313
Darling Ingredients Incorporated		5.38			1-15-2022		180,000		186,075
Kraft Foods Group Incorporated		3.50			6-6-2022		750,000		774,757
Pilgrim’s Pride Corporation 144A		5.75			3-15-2025		1,305,000		1,381,669
Pilgrim’s Pride Corporation 144A		5.88			9-30-2027		150,000		156,000
Pinnacle Foods Incorporated		5.88			1-15-2024		75,000		79,875
Post Holdings Incorporated 144A		5.00			8-15-2026		400,000		402,000
Post Holdings Incorporated 144A		5.50			3-1-2025		525,000		546,000
Post Holdings Incorporated 144A		5.75			3-1-2027		975,000		1,012,781
Prestige Brands Incorporated 144A		6.38			3-1-2024		130,000		138,450
									6,055,920
Tobacco: 0.14%
Reynolds American Incorporated		6.88			5-1-2020		650,000		722,043
Energy: 19.08%
Energy Equipment & Services: 5.23%
Bristow Group Incorporated		6.25			10-15-2022		3,330,000		2,376,788
Era Group Incorporated		7.75			12-15-2022		2,350,000		2,220,750
Hilcorp Energy Company 144A		5.00			12-1-2024		1,450,000		1,442,750
Hilcorp Energy Company 144A		5.75			10-1-2025		1,525,000		1,561,219
Hornbeck Offshore Services Incorporated		1.50			9-1-2019		4,750,000		3,687,188
Hornbeck Offshore Services Incorporated		5.00			3-1-2021		150,000		79,500
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		1,860,000		1,227,600
NGPL PipeCo LLC 144A		4.38			8-15-2022		350,000		360,063
NGPL PipeCo LLC 144A		4.88			8-15-2027		550,000		569,250
NGPL PipeCo LLC 144A		7.77			12-15-2037		6,585,000		8,214,768
PHI Incorporated		5.25			3-15-2019		4,425,000		4,380,750
									26,120,626
Oil, Gas & Consumable Fuels: 13.85%
Carrizo Oil & Gas Incorporated		8.25			7-15-2025		800,000		862,000
Cheniere Energy Incorporated 144A		5.25			10-1-2025		2,825,000		2,909,750
Continental Resources Incorporated		3.80			6-1-2024		700,000		679,875
Continental Resources Incorporated		5.00			9-15-2022		875,000		884,844
DCP Midstream Operating Company		2.70			4-1-2019		725,000		720,469
Denbury Resources Incorporated		4.63			7-15-2023		1,650,000		936,375
Denbury Resources Incorporated		6.38			8-15-2021		3,209,000		2,198,165
El Paso LLC		6.50			4-1-2020		750,000		818,236
Enable Midstream Partner LP		2.40			5-15-2019		2,350,000		2,344,931
Enable Midstream Partner LP		3.90			5-15-2024		1,750,000		1,764,310
Enable Oklahoma Intrastate Transmission LLC 144A		6.25			3-15-2020		250,000		266,254
Energy Transfer Partners LP		5.20			2-1-2022		750,000		815,821

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

14 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
EnLink Midstream LLC		4.15	%		6-1-2025	$	2,350,000	$	2,384,545
EnLink Midstream LLC		4.40			4-1-2024		3,200,000		3,317,573
Exterran Partners LP		6.00			4-1-2021		3,100,000		3,084,500
Gulfport Energy Corporation		6.63			5-1-2023		1,900,000		1,947,500
Kinder Morgan Energy Partners LP		3.95			9-1-2022		750,000		784,862
Kinder Morgan Incorporated		6.50			9-15-2020		285,000		313,330
Kinder Morgan Incorporated		7.42			2-15-2037		800,000		930,837
Matador Resources Company		6.88			4-15-2023		300,000		317,250
Murphy Oil Corporation		4.70			12-1-2022		1,200,000		1,209,000
Murphy Oil Corporation		5.75			8-15-2025		185,000		191,013
Murphy Oil Corporation		6.88			8-15-2024		850,000		913,750
Nabors Industries Limited		0.75			1-15-2024		1,425,000		1,050,938
Nabors Industries Limited		4.63			9-15-2021		750,000		724,350
Overseas Shipholding Group Incorporated		8.13			3-30-2018		2,275,000		2,309,125
Phillips 66		4.30			4-1-2022		625,000		669,383
Pioneer Natural Resources Company		3.95			7-15-2022		750,000		785,662
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		3,500,000		3,710,000
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		3,074,000		3,427,510
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		240,000		277,200
Rose Rock Midstream LP		5.63			7-15-2022		1,200,000		1,182,000
Rose Rock Midstream LP		5.63			11-15-2023		825,000		806,438
Sabine Pass Liquefaction LLC		5.63			2-1-2021		600,000		650,779
Sabine Pass Liquefaction LLC		5.63			4-15-2023		1,710,000		1,898,994
Sabine Pass Liquefaction LLC		5.63			3-1-2025		460,000		511,018
Sabine Pass Liquefaction LLC		5.75			5-15-2024		1,625,000		1,820,140
Sabine Pass Liquefaction LLC		6.25			3-15-2022		3,550,000		3,996,304
SemGroup Corporation 144A		6.38			3-15-2025		3,425,000		3,373,625
SemGroup Corporation 144A		7.25			3-15-2026		1,000,000		1,025,000
Southern Star Central Corporation 144A		5.13			7-15-2022		775,000		807,938
Southwestern Energy Company		4.10			3-15-2022		425,000		417,563
Southwestern Energy Company		7.50			4-1-2026		400,000		415,000
Southwestern Energy Company		7.75			10-1-2027		400,000		416,000
Summit Midstream Holdings LLC		5.75			4-15-2025		225,000		229,500
Tallgrass Energy Partners LP 144A		5.50			9-15-2024		4,950,000		5,117,063
Tesoro Logistics LP		6.13			10-15-2021		225,000		232,313
Tesoro Logistics LP		6.38			5-1-2024		450,000		492,750
Ultra Resources Incorporated 144A		6.88			4-15-2022		600,000		606,000
Ultra Resources Incorporated 144A		7.13			4-15-2025		505,000		505,000
Western Gas Partners LP		4.00			7-1-2022		175,000		180,600
Western Gas Partners LP		5.38			6-1-2021		225,000		241,068
Williams Partners LP		3.35			8-15-2022		750,000		766,336
									69,240,787
Financials: 9.29%
Banks: 0.37%
Bank of America Corporation		5.70			1-24-2022		250,000		280,488
Citigroup Incorporated		4.50			1-14-2022		250,000		268,134
City National Bank		5.38			7-15-2022		500,000		553,438
JPMorgan Chase & Company		3.38			5-1-2023		750,000		768,695
									1,870,755

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets: 0.39%
ACE Securities Corporation (1 Month LIBOR +2.63%) ±		3.86	%		6-25-2033	$	280,067	$	279,118
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		750,000		831,629
Goldman Sachs Group Incorporated		5.75			1-24-2022		750,000		839,490
									1,950,237
Consumer Finance: 3.26%
Ally Financial Incorporated		8.00			12-31-2018		780,000		827,775
Ally Financial Incorporated		8.00			3-15-2020		755,000		848,431
Discover Financial Services		5.20			4-27-2022		750,000		816,423
FirstCash Incorporated 144A		5.38			6-1-2024		575,000		600,703
Ford Motor Credit Company LLC		5.00			5-15-2018		650,000		661,204
General Motors Financial Company Incorporated		3.70			5-9-2023		750,000		768,514
Navient Corporation		8.00			3-25-2020		930,000		1,025,325
Navient Corporation		8.45			6-15-2018		1,675,000		1,737,813
OneMain Financial Group LLC 144A		7.25			12-15-2021		3,425,000		3,562,000
Springleaf Finance Corporation		6.00			6-1-2020		825,000		864,188
Springleaf Finance Corporation		6.90			12-15-2017		4,550,000		4,567,290
									16,279,666
Diversified Financial Services: 3.06%
General Electric Capital Corporation		4.65			10-17-2021		187,000		204,085
Infinity Acquisition LLC 144A		7.25			8-1-2022		960,000		950,400
ING US Incorporated		5.50			7-15-2022		750,000		832,644
Ladder Capital Securities LLC 144A		5.25			10-1-2025		350,000		348,688
LPL Holdings Incorporated 144A		5.75			9-15-2025		10,025,000		10,426,000
NewStar Financial Incorporated		7.25			5-1-2020		2,450,000		2,548,000
									15,309,817
Insurance: 2.21%
American International Group Incorporated		4.88			6-1-2022		750,000		821,062
Endurance Specialty Holdings Limited		7.00			7-15-2034		575,000		722,728
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		718,327
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		1,075,000		1,077,688
Hub International Limited 144A		7.88			10-1-2021		3,950,000		4,111,279
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		819,012
ProAssurance Corporation		5.30			11-15-2023		750,000		813,676
Prudential Financial Incorporated		4.50			9-15-2047		750,000		757,969
USIS Merger Subordinate Incorporated 144A		6.88			5-1-2025		475,000		492,813
W.R. Berkley Corporation		4.63			3-15-2022		650,000		697,593
									11,032,147
Health Care: 5.70%
Biotechnology: 0.16%
Amgen Incorporated		3.63			5-15-2022		750,000		783,042
Health Care Equipment & Supplies: 1.12%
Hill-Rom Holdings Incorporated 144A		5.00			2-15-2025		400,000		409,000
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		210,500

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

16 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Health Care Equipment & Supplies (continued)
Hologic Incorporated 144A		4.38	%		10-15-2025	$	700,000	$	711,200
Hologic Incorporated 144A		5.25			7-15-2022		670,000		699,313
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		1,425,000		1,485,563
Surgery Center Holdings Incorporated 144A		6.75			7-1-2025		500,000		456,250
Surgery Center Holdings Incorporated 144A		8.88			4-15-2021		1,575,000		1,610,438
									5,582,264
Health Care Providers & Services: 3.81%
Acadia Healthcare Company Incorporated		6.50			3-1-2024		190,000		200,213
Community Health Systems Incorporated		6.25			3-31-2023		390,000		374,400
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		820,846
Express Scripts Holding Company		3.90			2-15-2022		665,000		695,989
HCA Incorporated		6.50			2-15-2020		1,400,000		1,508,500
HealthSouth Corporation		5.75			9-15-2025		575,000		592,969
Humana Incorporated		7.20			6-15-2018		750,000		774,820
Mednax Incorporated 144A		5.25			12-1-2023		475,000		494,000
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		1,750,000		1,883,438
MPT Operating Partnership LP		5.00			10-15-2027		1,100,000		1,130,250
MPT Operating Partnership LP		5.25			8-1-2026		1,250,000		1,301,475
MPT Operating Partnership LP		6.38			3-1-2024		110,000		118,938
Select Medical Corporation		6.38			6-1-2021		3,050,000		3,137,688
Tenet Healthcare Corporation 144A		4.63			7-15-2024		436,000		428,915
Tenet Healthcare Corporation		6.00			10-1-2020		1,475,000		1,548,750
Vizient Incorporated 144A		10.38			3-1-2024		3,550,000		4,047,000
									19,058,191
Health Care Technology: 0.30%
Change Healthcare Holdings Incorporated 144A		5.75			3-1-2025		1,200,000		1,227,000
Quintiles IMS Holdings Incorporated 144A		5.00			10-15-2026		225,000		239,063
									1,466,063
Life Sciences Tools & Services: 0.16%
Life Technologies Corporation		6.00			3-1-2020		750,000		813,570
Pharmaceuticals: 0.15%
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		762,096
Industrials: 3.07%
Aerospace & Defense: 0.21%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		1,046,494
Airlines: 0.35%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,100,000		1,241,294
Delta Air Lines Incorporated		4.75			11-7-2021		469,889		491,067
									1,732,361
Commercial Services & Supplies: 2.19%
Advanced Disposal Services Incorporated 144A		5.63			11-15-2024		1,750,000		1,820,000
Aramark Services Incorporated		5.13			1-15-2024		420,000		444,150

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies (continued)
Covanta Holding Corporation		5.88	%		7-1-2025	$	900,000	$	891,000
Covanta Holding Corporation		5.88			3-1-2024		1,485,000		1,488,713
Covanta Holding Corporation		6.38			10-1-2022		1,500,000		1,548,750
KAR Auction Services Incorporated 144A		5.13			6-1-2025		3,200,000		3,312,000
Multi-Color Corporation 144A		4.88			11-1-2025		25,000		25,250
Plastipak Holdings Incorporated 144A		6.25			10-15-2025		400,000		407,500
Republic Services Incorporated		3.55			6-1-2022		750,000		779,870
Wrangler Buyer Corporation 144A		6.00			10-1-2025		250,000		255,625
									10,972,858
Professional Services: 0.17%
Ascent Capital Group Incorporated		4.00			7-15-2020		375,000		294,375
Verisk Analytics Incorporated		5.80			5-1-2021		530,000		582,391
									876,766
Road & Rail: 0.13%
TTX Company 144A		2.60			6-15-2020		650,000		650,745
Trading Companies & Distributors: 0.02%
International Lease Finance Corporation 144A		7.13			9-1-2018		75,000		78,131
Information Technology: 6.26%
Communications Equipment: 0.33%
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		825,000		870,375
Motorola Solutions Incorporated		3.75			5-15-2022		750,000		773,488
									1,643,863
Electronic Equipment, Instruments & Components: 1.26%
Jabil Circuit Incorporated		8.25			3-15-2018		4,325,000		4,411,500
Keysight Technologies		4.60			4-6-2027		600,000		640,842
L-3 Communications Corporation		4.95			2-15-2021		750,000		803,562
Zebra Technologies Corporation		7.25			10-15-2022		414,000		437,288
									6,293,192
Internet Software & Services: 0.77%
Infor Software Parent LLC		6.50			5-15-2022		550,000		574,640
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13			5-1-2021		550,000		565,125
Zayo Group LLC 144A		5.75			1-15-2027		1,125,000		1,185,469
Zayo Group LLC		6.00			4-1-2023		75,000		78,844
Zayo Group LLC		6.38			5-15-2025		1,325,000		1,426,177
									3,830,255
IT Services: 1.15%
Cardtronics Incorporated		5.13			8-1-2022		460,000		469,200
Cardtronics Incorporated 144A		5.50			5-1-2025		940,000		935,300
First Data Corporation 144A		5.00			1-15-2024		1,150,000		1,194,563
First Data Corporation 144A		5.38			8-15-2023		275,000		286,000
First Data Corporation 144A		5.75			1-15-2024		320,000		334,800
First Data Corporation 144A		7.00			12-1-2023		75,000		80,252

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

18 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
IT Services (continued)
Gartner Incorporated 144A		5.13	%		4-1-2025	$	2,325,000	$	2,458,688
									5,758,803
Semiconductors & Semiconductor Equipment: 0.28%
Micron Technology Incorporated 144A		5.25			8-1-2023		375,000		392,513
Micron Technology Incorporated 144A		5.25			1-15-2024		700,000		735,875
Micron Technology Incorporated		5.50			2-1-2025		256,000		272,000
									1,400,388
Software: 0.17%
SS&C Technologies Incorporated		5.88			7-15-2023		600,000		633,750
Symantec Corporation 144A		5.00			4-15-2025		200,000		209,000
									842,750
Technology Hardware, Storage & Peripherals: 2.30%
Diamond 1 Finance Corporation 144A		5.88			6-15-2021		1,000,000		1,047,251
Diamond 1 Finance Corporation 144A		7.13			6-15-2024		4,525,000		4,994,399
Hewlett-Packard Company		4.05			9-15-2022		750,000		791,858
NCR Corporation		5.88			12-15-2021		5,000		5,169
NCR Corporation		6.38			12-15-2023		4,400,000		4,686,264
									11,524,941
Materials: 1.15%
Chemicals: 0.24%
Dow Chemical Company		4.13			11-15-2021		750,000		795,025
Valvoline Incorporated 144A		5.50			7-15-2024		375,000		397,500
									1,192,525
Containers & Packaging: 0.91%
Ball Corporation		5.25			7-1-2025		190,000		208,763
Berry Plastics Corporation		5.13			7-15-2023		350,000		367,500
Berry Plastics Corporation		6.00			10-15-2022		215,000		227,631
Crown Cork & Seal Company Incorporated		7.38			12-15-2026		35,000		41,125
Owens-Brockway Glass Container Incorporated 144A		5.88			8-15-2023		325,000		356,688
Owens-Illinois Incorporated 144A		6.38			8-15-2025		2,950,000		3,333,500
									4,535,207
Metals & Mining: 0.00%
Indalex Holdings Corporation (a)†		11.50			2-1-2020		3,170,000		0
Real Estate: 3.22%
Equity REITs: 3.22%
Alexandria Real Estate Company		4.60			4-1-2022		650,000		693,296
American Tower Corporation		5.90			11-1-2021		650,000		727,861
DDR Corporation		4.70			6-1-2027		600,000		623,127
Equinix Incorporated		5.88			1-15-2026		425,000		460,594
ESH Hospitality Incorporated 144A		5.25			5-1-2025		1,550,000		1,602,313
Essex Portfolio LP		3.63			8-15-2022		750,000		776,478

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Equity REITs (continued)
Iron Mountain Incorporated 144A		5.38	%		6-1-2026	$	150,000	$	156,750
Iron Mountain Incorporated		6.00			8-15-2023		2,960,000		3,115,400
MGM Growth Properties LLC 144A		4.50			1-15-2028		400,000		399,000
Omega HealthCare Investors Incorporated		4.50			4-1-2027		600,000		596,550
Sabra Health Care REIT Incorporated		5.38			6-1-2023		900,000		929,250
Sabra Health Care REIT Incorporated		5.50			2-1-2021		1,100,000		1,134,375
The Geo Group Incorporated		5.13			4-1-2023		800,000		814,000
The Geo Group Incorporated		5.88			1-15-2022		1,565,000		1,617,819
The Geo Group Incorporated		5.88			10-15-2024		840,000		878,052
The Geo Group Incorporated		6.00			4-15-2026		184,000		192,280
Ventas Realty LP		4.25			3-1-2022		650,000		686,082
Welltower Incorporated		5.25			1-15-2022		650,000		713,363
									16,116,590
Telecommunication Services: 3.65%
Diversified Telecommunication Services: 1.14%
AT&T Incorporated		3.80			3-15-2022		750,000		789,536
GCI Incorporated		6.75			6-1-2021		1,000,000		1,025,000
Level 3 Financing Incorporated		5.13			5-1-2023		975,000		998,156
Level 3 Financing Incorporated		5.25			3-15-2026		650,000		671,743
Level 3 Financing Incorporated		5.38			8-15-2022		300,000		309,084
Level 3 Financing Incorporated		5.38			1-15-2024		700,000		727,125
Level 3 Financing Incorporated		5.38			5-1-2025		625,000		653,125
Level 3 Financing Incorporated		5.63			2-1-2023		350,000		361,375
Level 3 Financing Incorporated		6.13			1-15-2021		175,000		178,521
									5,713,665
Wireless Telecommunication Services: 2.51%
Crown Castle Towers LLC 144A		6.11			1-15-2040		750,000		797,889
SBA Communications Corporation 144A		4.00			10-1-2022		800,000		812,000
SBA Communications Corporation		4.88			7-15-2022		640,000		660,800
SBA Communications Corporation		4.88			9-1-2024		500,000		513,750
Sprint Capital Corporation		6.88			11-15-2028		3,925,000		4,187,484
Sprint Capital Corporation		8.75			3-15-2032		625,000		757,813
Sprint Communications Incorporated		7.00			8-15-2020		225,000		243,000
T-Mobile USA Incorporated		4.00			4-15-2022		650,000		672,344
T-Mobile USA Incorporated		5.13			4-15-2025		425,000		445,060
T-Mobile USA Incorporated		5.38			4-15-2027		225,000		243,563
T-Mobile USA Incorporated		6.00			3-1-2023		300,000		316,125
T-Mobile USA Incorporated		6.13			1-15-2022		85,000		88,400
T-Mobile USA Incorporated		6.38			3-1-2025		825,000		891,000
T-Mobile USA Incorporated		6.50			1-15-2024		80,000		85,400
T-Mobile USA Incorporated		6.63			4-1-2023		655,000		687,750
T-Mobile USA Incorporated		6.84			4-28-2023		1,060,000		1,118,300
									12,520,678

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

20 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 4.31%
Electric Utilities: 0.20%
Great Plains Energy Incorporated		4.85	%		6-1-2021	$	750,000	$	796,796
NextEra Energy Incorporated 144A		4.25			9-15-2024		175,000		176,750
									973,546
Gas Utilities: 0.20%
AmeriGas Partners LP		5.75			5-20-2027		1,000,000		1,021,250
Independent Power & Renewable Electricity Producers: 3.64%
NSG Holdings LLC 144A		7.75			12-15-2025		4,956,547		5,384,049
Pattern Energy Group Incorporated 144A		5.88			2-1-2024		4,825,000		5,126,563
TerraForm Power Operating LLC 144A		6.38			2-1-2023		5,425,000		5,682,688
TerraForm Power Operating LLC 144A		6.63			6-15-2025		1,850,000		2,007,250
									18,200,550
Multi-Utilities: 0.27%
Ameren Illinois Company		9.75			11-15-2018		500,000		538,983
CMS Energy Corporation		5.05			3-15-2022		750,000		823,065
									1,362,048
Total Corporate Bonds and Notes (Cost $329,724,369)									349,168,343
Foreign Corporate Bonds and Notes @: 2.07%
Consumer Discretionary: 0.05%
Internet & Direct Marketing Retail: 0.05%
Priceline Group Incorporated (EUR)		2.38			9-23-2024		200,000		253,671
Consumer Staples: 0.19%
Food Products: 0.19%
BRF SA 144A (BRL)		7.75			5-22-2018		3,100,000		938,159
Energy: 0.26%
Oil, Gas & Consumable Fuels: 0.26%
Petroleos Mexicanos 144A (MXN)		7.19			9-12-2024		28,200,000		1,317,814
Financials: 1.14%
Banks: 1.08%
Eurofima (AUD)		6.25			12-28-2018		2,450,000		1,964,788
European Investment Bank (ZAR)		9.00			3-31-2021		17,400,000		1,263,568
KfW (AUD)		5.00			3-19-2024		1,300,000		1,119,261
Landwirtschaftliche Rentenbank (ZAR)		8.25			5-23-2022		15,000,000		1,057,835
									5,405,452
Diversified Financial Services: 0.06%
AA Bond Company Limited (GBP)		4.25			7-31-2043		200,000		280,671

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 0.04%
Semiconductors & Semiconductor Equipment: 0.04%
ASML Holding NV (EUR)		1.38	%		7-7-2026		175,000	$	212,411
Materials: 0.06%
Chemicals: 0.06%
Albemarle Corporation (EUR)		1.88			12-8-2021		246,000		303,054
Telecommunication Services: 0.33%
Diversified Telecommunication Services: 0.04%
Verizon Communications Incorporated (EUR)		3.25			2-17-2026		150,000		203,817
Wireless Telecommunication Services: 0.29%
America Movil SAB de CV (MXN)		7.13			12-9-2024		28,850,000		1,425,529
Total Foreign Corporate Bonds and Notes (Cost $13,592,821)									10,340,578
Foreign Government Bonds @: 24.44%
Colombia (COP)		7.00			9-11-2019		18,500,000,000		6,275,842
Colombia (COP)		7.00			5-4-2022		18,650,000,000		6,375,338
Colombia (COP)		7.50			8-26-2026		22,725,000,000		7,894,850
Colombia (COP)		7.75			4-14-2021		5,250,000,000		1,835,808
Hungary (HUF)		6.75			11-24-2017		1,305,000,000		4,900,052
India (INR)		7.80			4-11-2021		435,000,000		6,960,887
Indonesia (IDR)		7.88			4-15-2019		133,640,000,000		10,131,474
Indonesia (IDR)		8.38			9-15-2026		110,000,000,000		8,901,382
Malaysia (MYR)		4.18			7-15-2024		19,850,000		4,741,963
Malaysia (MYR)		4.23			6-30-2031		51,300,000		11,830,445
Mexico (MXN)		5.75			3-5-2026		72,000,000		3,410,393
Mexico (MXN)		8.00			11-7-2047		217,500,000		11,910,016
Mexico (MXN)		10.00			12-5-2024		62,120,000		3,757,868
Mexico (MXN)		10.00			12-5-2024		14,100,000		852,961
New Zealand (NZD)		4.50			4-15-2027		8,250,000		6,369,966
Queensland Treasury (AUD)		5.75			7-22-2024		4,100,000		3,718,725
Republic of South Africa (ZAR)		7.75			2-28-2023		103,000,000		7,086,065
Republic of South Africa (ZAR)		10.50			12-21-2026		153,500,000		11,761,213
State of New South Wales Australia (AUD)		5.00			8-20-2024		3,900,000		3,426,221
Total Foreign Government Bonds (Cost $138,513,717)									122,141,469
Loans: 18.74%
Consumer Discretionary: 4.91%
Auto Components: 0.59%
Allison Transmission Incorporated (1 Month LIBOR +2.00%) ±		3.25			9-23-2022	$	1,885,701		1,895,921
Federal-Mogul Corporation (1 Month LIBOR +3.75%) ±		4.99			4-15-2021		1,036,583		1,045,653
									2,941,574
Distributors: 0.50%
Spin Holdco Incorporated (1 Month LIBOR +3.75%) ±		4.99			11-14-2022		2,465,960		2,482,926

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

22 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Food & Staples Retailing: 0.08%
TKC Holdings Incorporated (2 Month LIBOR +4.25%) ±		5.52	%		2-1-2023	$	398,000	$	401,980
Hotels, Restaurants & Leisure: 1.56%
CCM Merger Incorporated (1 Month LIBOR +2.75%) ±		3.99			8-8-2021		700,617		704,779
Four Seasons Holdings Incorporated (1 Month LIBOR +2.50%) ±		3.74			11-30-2023		903,830		909,822
La Quinta Intermediate Holdings LLC (3 Month LIBOR +2.75%) ±		4.11			4-14-2021		736,809		739,800
Montreign Operating Company (1 Month LIBOR +8.25%) ±%%<‡		9.30			12-7-2022		5,375,000		5,422,031
									7,776,432
Household Products: 0.38%
Anchor Glass Container Corporation (1 Month LIBOR +2.75%) ±		4.02			12-7-2023		595,500		598,757
Anchor Glass Container Corporation (3 Month LIBOR +7.75%) ±		9.07			12-7-2024		1,300,000		1,310,829
									1,909,586
Media: 1.67%
Altice US Finance I Corporation (1 Month LIBOR +2.25%) ±		3.49			7-28-2025		715,992		714,796
CBS Radio Incorporated (1 Month LIBOR +3.50%) ±		4.74			10-17-2023		1,875,961		1,887,216
Charter Communications Operating LLC (1 Month LIBOR +2.25%) ±		3.50			1-15-2024		906,200		912,670
Entercom Radio LLC (1 Month LIBOR +3.50%) ±		4.73			11-1-2023		1,073,438		1,075,048
Learfield Communications Incorporated (1 Month LIBOR +3.25%) ±‡		4.25			12-1-2023		3,473,750		3,491,119
Mission Broadcasting Incorporated (1 Month LIBOR +2.50%) ±		3.74			1-17-2024		31,805		31,982
Nexstar Broadcasting Group Incorporated (1 Month LIBOR +2.50%) ±		3.74			1-17-2024		253,320		254,724
									8,367,555
Specialty Retail: 0.13%
Staples Incorporated (2 Month LIBOR +4.00%) ±		5.31			9-12-2024		700,000		657,825
Consumer Staples: 0.17%
Food Products: 0.17%
B&G Foods Incorporated (1 Month LIBOR +2.25%) ±		3.49			11-2-2022		640,110		643,509
Prestige Brands Incorporated (1 Month LIBOR +2.75%) ±		3.99			1-26-2024		209,965		211,113
									854,622
Energy: 1.83%
Energy Equipment & Services: 0.90%
Hummel Station (1 Month LIBOR +6.00%) ±‡		7.24			10-27-2022		4,929,434		4,522,756
Oil, Gas & Consumable Fuels: 0.93%
Chesapeake Energy Corporation (3 Month LIBOR +7.50%) ±		8.81			8-23-2021		450,000		482,252
Traverse Midstream Partners LLC (2 Month LIBOR +4.00%) ±		5.33			9-27-2024		575,000		582,331
Ultra Resources Incorporated (2 Month LIBOR +3.00%) ±		4.31			4-12-2024		2,250,000		2,249,438
Veresen Midstream LP (1 Month LIBOR +3.50%) ±		4.74			3-31-2022		1,308,228		1,318,694
									4,632,715
Financials: 2.02%
Capital Markets: 0.18%
Neptune Finco Corporation (1 Month LIBOR +2.25%) ±		3.49			7-17-2025		457,078		456,342
Russell Investments US Institutional Holdco Incorporated (1 Month LIBOR +4.25%) ±		5.49			6-1-2023		421,796		426,964
									883,306

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance: 0.03%
KAR Auction Services Incorporated (3 Month LIBOR +2.50%) ±		3.88	%		3-9-2023	$	155,087	$	156,121
Diversified Financial Services: 1.05%
Ipreo Holdings LLC (3 Month LIBOR +3.00%) ±		4.33			8-6-2021		140,674		140,323
LPL Holdings Incorporated (3 Month LIBOR +2.25%) ±		3.65			9-23-2024		1,077,100		1,080,687
Nielsen Finance LLC (1 Month LIBOR +2.00%) ±		3.24			10-4-2023		470,262		471,659
Resolute Investment Managers Incorporated (2 Month LIBOR +3.25%) ±‡		4.58			4-30-2022		2,459,447		2,476,368
Resolute Investment Managers Incorporated (3 Month LIBOR +7.50%) ±%%<		8.88			4-30-2023		650,000		650,000
Resolute Investment Managers Incorporated (3 Month LIBOR +8.75%) ±‡		10.13			3-3-2023		440,000		441,100
									5,260,137
Insurance: 0.76%
Alliant Holdings I LLC (1 Month LIBOR +3.25%) ±		4.49			8-12-2022		1,389,359		1,398,626
AmWINS Group Incorporated (1 Month LIBOR +2.75%) ±		3.99			1-25-2024		797,188		800,081
Hub International Limited (3 Month LIBOR +3.00%) ±		4.31			10-2-2020		689,611		694,728
Solera Holdings Incorporated (1 Month LIBOR +3.25%) ±		4.49			3-3-2023		861,875		868,089
									3,761,524
Health Care: 1.70%
Health Care Equipment & Supplies: 0.38%
DJO Finance LLC (1 Month LIBOR +3.25%) ±		4.54			6-8-2020		557,175		557,292
Kinetic Concepts Incorporated (3 Month LIBOR +3.25%) ±		4.58			2-2-2024		1,332,898		1,330,899
									1,888,191
Health Care Providers & Services: 0.98%
Community Health Systems Incorporated (3 Month LIBOR +3.00%) ±		4.32			1-27-2021		582,757		563,223
MPH Acquisition Holdings LLC (3 Month LIBOR +3.00%) ±		4.33			6-7-2023		500,072		504,718
Press Ganey Holdings Incorporated (1 Month LIBOR +3.00%) ±		4.24			10-23-2023		1,705,627		1,718,419
Press Ganey Holdings Incorporated (1 Month LIBOR +6.50%) ±		7.74			10-21-2024		774,319		783,998
TeamHealth Incorporated (1 Month LIBOR +2.75%) ±		3.99			2-6-2024		746,250		739,720
Vizient Incorporated (1 Month LIBOR +3.50%) ±		4.74			2-13-2023		559,159		562,514
									4,872,592
Health Care Technology: 0.13%
Change Healthcare Holdings Incorporated (1 Month LIBOR +2.75%) ±		3.99			3-1-2024		665,691		669,206
Life Sciences Tools & Services: 0.09%
INC Research LLC (1 Month LIBOR +2.25%) ±		3.49			8-1-2024		467,578		469,991
Pharmaceuticals: 0.12%
Endo Finance LLC (1 Month LIBOR +4.25%) ±		5.50			4-29-2024		295,946		299,793
Valeant Pharmaceuticals International Incorporated (1 Month LIBOR +4.75%) ±		5.99			4-1-2022		296,919		303,415
									603,208
Industrials: 2.79%
Aerospace & Defense: 0.50%
TransDigm Incorporated (1 Month LIBOR +3.00%) ±		4.26			8-22-2024		2,467,390		2,478,567

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

24 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies: 2.16%
Advanced Disposal Services Incorporated (1 Month LIBOR +2.75%) ±		3.95	%		11-10-2023	$	1,220,091	$	1,230,462
Advantage Sales & Marketing LLC (3 Month LIBOR +6.50%) ±		7.88			7-25-2022		1,250,000		1,041,513
Avantor Performance Materials Incorporated (1 Month LIBOR +4.00%) ±		5.25			3-10-2024		1,699,455		1,708,258
Casella Waste Systems Incorporated (1 Month LIBOR +2.75%) ±‡		3.99			10-17-2023		1,960,187		1,974,889
Columbus McKinnon Corporation (3 Month LIBOR +3.00%) ±‡		4.33			1-31-2024		1,079,039		1,089,829
Gates Global Limited (3 Month LIBOR +3.25%) ±		4.58			4-1-2024		609,239		613,126
GFL Environmental Incorporated (3 Month LIBOR +2.75%) ±		4.08			9-29-2023		173,250		173,683
Sedgwick Claims Management Services Incorporated (1 Month LIBOR +2.75%) ±		3.99			3-1-2021		520,176		522,455
USI Incorporated (4 Month LIBOR +3.00%) ±		4.31			5-16-2024		225,000		225,468
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +3.25%) ±		4.49			5-14-2022		1,260,973		1,267,277
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +7.00%) ±‡		8.24			5-12-2023		17,885		17,706
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +7.00%) ±‡		8.24			5-14-2023		102,115		101,094
Wrangler Buyer Corporation (1 Month LIBOR +3.00%) ±		4.24			9-27-2024		825,000		831,922
									10,797,682
Machinery: 0.12%
Onex Wizard Acquisition Company (1 Month LIBOR +3.00%) ±		4.24			3-13-2022		606,429		610,474
Transportation Infrastructure: 0.01%
OSG Bulk Ships Incorporated (3 Month LIBOR +4.25%) ±‡		5.57			8-5-2019		71,190		68,520
Information Technology: 2.16%
Electronic Equipment, Instruments & Components: 0.46%
Dell Incorporated (1 Month LIBOR +2.00%) ±		3.25			9-7-2023		2,272,210		2,277,299
Internet Software & Services: 1.53%
Ancestry.com Incorporated (1 Month LIBOR +3.25%) ±		4.49			10-19-2023		2,974,950		3,005,949
Ancestry.com Incorporated (1 Month LIBOR +8.25%) ±		9.49			10-19-2024		2,992,500		3,059,831
Applied Systems Incorporated (2 Month LIBOR +3.25%) ±		4.57			9-19-2024		325,000		328,972
Black Knight InfoServ LLC (1 Month LIBOR +2.25%) ±‡		3.50			5-27-2022		489,364		493,034
Infor US Incorporated (3 Month LIBOR +2.75%) ±		4.08			2-1-2022		514,074		514,609
Sophia Holding Finance LP (3 Month LIBOR +3.25%) ±		4.58			9-30-2022		146,969		146,694
Zayo Group LLC (1 Month LIBOR +2.25%) ±		3.49			1-19-2024		107,244		107,653
									7,656,742
Semiconductors & Semiconductor Equipment: 0.07%
Micron Technology Incorporated (3 Month LIBOR +2.00%) ±		3.39			4-26-2022		345,625		348,794
Software: 0.10%
SS&C Technologies Incorporated (1 Month LIBOR +2.25%) ±		3.49			7-8-2022		505,172		507,855
Materials: 0.61%
Containers & Packaging: 0.61%
Berry Plastics Corporation (1 Month LIBOR +2.25%) ±		3.49			10-1-2022		412,327		414,104
Reynolds Group Holdings Incorporated (1 Month LIBOR +2.75%) ±		3.99			2-5-2023		2,475,047		2,488,957
RING Container Technologies (1 Month LIBOR +2.75%) ±%%<		0.00			10-31-2024		125,000		125,079
									3,028,140

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Real Estate: 1.07%
Equity REITs: 0.63%
ESH Hospitality Incorporated (1 Month LIBOR +2.50%) ±		3.74	%		8-30-2023	$	1,287,024	$	1,294,348
MGM Growth Properties LLC (1 Month LIBOR +2.25%) ±		3.49			4-25-2023		319,999		321,656
The Geo Group Incorporated (3 Month LIBOR +2.25%) ±		3.57			3-22-2024		1,548,824		1,548,173
									3,164,177
Real Estate Management & Development: 0.44%
Capital Automotive LP (1 Month LIBOR +3.00%) ±		4.25			3-24-2024		1,364,062		1,366,108
Capital Automotive LP (1 Month LIBOR +6.00%) ±‡		7.25			3-24-2025		808,086		828,289
									2,194,397
Telecommunication Services: 1.34%
Diversified Telecommunication Services: 0.89%
Frontier Communications Corporation (1 Month LIBOR +3.75%) ±		4.99			6-15-2024		1,418,500		1,348,327
Level 3 Financing Incorporated (1 Month LIBOR +2.25%) ±		3.49			2-22-2024		555,420		557,303
Telesat Canada (2 Month LIBOR +3.00%) ±		4.32			11-17-2023		2,512,738		2,526,080
									4,431,710
Wireless Telecommunication Services: 0.45%
LTS Buyer LLC (2 Month LIBOR +2.25%) ±		6.50			4-13-2020		1,824,550		1,827,980
Sprint Communications Incorporated (1 Month LIBOR +2.50%) ±		3.75			2-2-2024		447,750		449,241
									2,277,221
Utilities: 0.14%
Independent Power & Renewable Electricity Producers: 0.14%
Vistra Energy Corporation (1 Month LIBOR +2.75%) ±%%<		4.01			12-14-2023		695,688		700,516
Total Loans (Cost $93,511,679)									93,654,341
Municipal Obligations: 0.01%
New York: 0.01%
Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)		5.00			4-1-2018		45,000		45,286
Total Municipal Obligations (Cost $45,000)									45,286
Non-Agency Mortgage-Backed Securities: 4.56%
280 Park Avenue Mortgage Trust Series 2017-280P Class A (1 Month LIBOR +0.88%) 144A±		2.12			9-15-2034		1,000,000		1,000,946
Argent Securities Incorporated Series 2004-W5 Class AV3B (1 Month LIBOR +0.90%) ±		2.14			4-25-2034		51,373		51,826
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18			3-25-2033		180,626		180,178
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±±		5.72			7-10-2044		1,053,875		742,075
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±±		5.48			1-15-2049		181,224		183,775
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±±		6.34			2-10-2051		550,000		552,635
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50			9-25-2035		232,953		243,599
Banc of America Mortgage Securities Series 2003 Class 1A1 ±±		3.62			4-25-2033		263,890		248,808

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

26 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Bear Stearns Asset-Backed Securities Series 2002-2 Class A1 (1 Month LIBOR +0.66%) ±		1.89	%		10-25-2032	$	203,064	$	199,286
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±±		6.08			6-11-2050		31,372		31,349
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AMA ±±		6.09			6-11-2050		147,776		147,725
Centex Home Equity Series 2002-A Class AF6		5.54			1-25-2032		34,428		34,375
Centex Home Equity Series 2002-D Class AF6 ±±		4.66			12-25-2032		9,860		9,938
Centex Home Equity Series 2004-B Class AF6		4.69			3-25-2034		136,904		140,251
CFCRE Commercial Mortgage Trust Series 2015-RUM Class A (1 Month LIBOR +1.70%) 144A±		2.94			7-15-2030		480,000		481,021
CGDBB Commerical Mortgage Trust Series 2017 Class A (1 Month LIBOR +0.79%) 144A±		2.03			7-15-2028		750,000		750,822
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±±		4.87			9-10-2045		1,000,000		1,047,465
Citigroup Commercial Mortgage Trust Series 2015 Class A (1 Month LIBOR +1.15%) 144A±		2.38			9-15-2027		595,000		594,995
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		2.09			7-15-2032		750,000		751,145
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		2.34			7-15-2030		1,000,000		997,339
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 (1 Month LIBOR +0.76%) ±		1.99			12-25-2033		29,240		29,069
Commercial Mortgage Trust Series 2012-CR2 Class C ±±		4.84			8-15-2045		1,000,000		1,037,347
Commercial Mortgage Trust Series 2012-LC4 Class A4		3.29			12-10-2044		205,000		210,977
Commercial Mortgage Trust Series 2012-LC4 Class AM		4.06			12-10-2044		500,000		523,665
Commercial Mortgage Trust Series 2012-LC4 Class C ±±		5.59			12-10-2044		500,000		533,297
Countrywide Asset-Backed Certificates Series 2003-5 Class AF5		5.26			2-25-2034		91,747		94,537
Countrywide Home Loans Series 2003-48 Class 2A2 ±±		3.67			10-25-2033		72,198		71,461
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±±		2.91			9-25-2032		547,813		529,510
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±±		3.73			6-25-2033		126,447		126,722
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±±		3.45			3-25-2033		26,072		25,905
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 (1 Month LIBOR +0.66%) ±		1.90			4-25-2036		35,587		35,635
Equity One Asset-Backed Securities Series 2004-2 Class AF4 ±±		4.62			7-25-2034		259,038		258,711
Global Mortgage Securitization Limited Series 2004-A Class A2 (1 Month LIBOR +0.32%) 144A±		1.56			11-25-2032		105,428		99,972
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±±(c)		1.38			8-10-2043		5,149,706		157,028
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±±(c)		2.23			5-10-2045		3,473,996		224,709
GS Mortgage Securities Trust Series 2014 Class C 144A		3.79			1-10-2031		1,000,000		999,163
GSAA Home Equity Trust Series 2004-5 Class AF5		4.51			6-25-2034		2,934		2,937
GSCCRE Commercial Mortgage Trust Series 2015-HULA Class C (1 Month LIBOR +2.75%) 144A±		3.99			8-15-2032		1,000,000		1,003,133
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 (1 Month LIBOR +0.65%) ±		1.88			4-25-2035		4,436		4,442
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 (1 Month LIBOR +0.30%) 144A±		1.54			3-25-2035		80,501		79,783
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2013-C17 Class B ±±		4.89			1-15-2047		50,000		53,304
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-PHH Class A (1 Month LIBOR +1.45%) 144A±		2.69			8-15-2027		700,000		699,999
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±±		5.47			6-12-2047		287,423		287,159
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		1.40			6-12-2047		246,363		243,584
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±±		5.46			1-15-2049		168,694		169,116
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-FL7 Class A (1 Month LIBOR +1.25%) 144A±		2.49			5-15-2028		122,414		122,397

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 27

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±±		3.66	%		7-25-2034	$	67,867	$	68,624
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±±		3.50			7-25-2034		60,830		60,000
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±±		3.72			6-25-2035		206,354		210,055
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±±		6.00			2-27-2037		10,398		10,452
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±±		6.00			2-27-2037		14,753		14,715
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±±		3.33			12-25-2033		361,751		363,397
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±±		3.44			1-25-2034		10,543		10,307
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±±		3.47			11-21-2034		17,285		17,697
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50			1-25-2020		17,969		18,304
MASTR Specialized Loan Trust Series 2005-3 Class A1 (1 Month LIBOR +0.36%) 144A±		1.59			11-25-2035		316,633		314,565
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3		5.25			8-25-2036		26,010		26,457
Merrill Lynch Mortgage Trust Series 2007-C1 Class A1A ±±		5.81			6-12-2050		47,441		47,441
Mesa Trust Asset-Backed Certificates Series 2001-5 Class A (1 Month LIBOR +0.40%) 144A±		2.04			12-25-2031		13,194		12,995
Mid State Trust Series 11 Class A1		4.86			7-15-2038		201,619		208,933
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 (6 Month LIBOR +0.68%) ±		2.09			1-25-2029		77,404		77,038
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±±(c)		1.48			8-15-2045		4,220,752		234,093
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C11 Class A4 ±±		4.17			8-15-2046		569,000		611,932
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 (1 Month LIBOR +1.05%) ±		2.29			12-27-2033		427,199		428,362
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±±		5.42			3-15-2045		900,000		951,104
New Century Home Equity Loan Trust Series 2004-3 Class M1 (1 Month LIBOR +0.93%) ±		2.17			11-25-2034		1,165,049		1,162,423
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ (1 Month LIBOR +0.58%) ±		1.82			3-25-2035		24,252		24,258
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±±		3.45			5-25-2035		22,620		22,090
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±±		4.12			12-26-2035		6,272		6,291
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88			2-25-2035		141,973		142,654
Saxon Asset Securities Trust Series 2002-1 Class AF5		6.04			12-25-2030		129,077		131,746
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03			6-25-2033		420,328		424,569
Sequoia Mortgage Trust Series 2003-1 Class 1A (1 Month LIBOR +0.76%) ±		2.00			4-20-2033		13,676		13,057
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		2.09			8-20-2030		465,000		466,010
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±±		3.51			3-25-2034		47,207		46,794
Structured Asset Securities Corporation Series 1998-2 Class A (1 Month LIBOR +0.52%) ±		1.76			2-25-2028		176,553		174,660
Structured Asset Securities Corporation Series 2002-9 Class A2 (1 Month LIBOR +0.60%) ±		1.54			10-25-2027		52,918		52,168
Terwin Mortgage Trust Series 2003-6HE Class A3 (1 Month LIBOR +1.14%) ±		2.37			11-25-2033		173,407		173,021
Vendee Mortgage Trust Series 2003-2 Class IO ±±(c)		0.72			5-15-2033		4,245,193		114,157
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50			7-25-2034		122,249		131,783
Total Non-Agency Mortgage-Backed Securities (Cost $22,738,634)									22,785,267
				Expiration date		Shares
Rights: 0.05%
Utilities: 0.05%
Independent Power & Renewable Electricity Producers: 0.05%
Vistra Energy Corporation †					12-31-2046		327,375		245,531
Total Rights (Cost $360,113)									245,531

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

28 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Yankee Corporate Bonds and Notes: 9.16%
Consumer Discretionary: 0.31%
Media: 0.31%
Grupo Televisa SAB		6.00	%		5-15-2018	$	750,000	$	765,057
WPP Finance 2010		3.63			9-7-2022		750,000		778,425
									1,543,482
Consumer Staples: 0.32%
Beverages: 0.17%
Pernod Ricard SA 144A		4.45			1-15-2022		760,000		816,266
Tobacco: 0.15%
BAT International Finance plc 144A		3.25			6-7-2022		750,000		764,829
Energy: 2.08%
Energy Equipment & Services: 0.30%
Ensco plc		5.75			10-1-2044		2,070,000		1,412,775
Trinidad Drilling Limited 144A		6.63			2-15-2025		75,000		72,938
									1,485,713
Oil, Gas & Consumable Fuels: 1.78%
Baytex Energy Corporation 144A		5.13			6-1-2021		2,114,000		2,003,015
Baytex Energy Corporation 144A		5.63			6-1-2024		850,000		790,500
Griffin Coal Mining Company Limited 144A(a)(p)†‡		9.50			12-1-2016		1,685,411		6,742
Griffin Coal Mining Company Limited (a)(p)†‡		9.50			12-1-2016		137,792		551
Teekay Corporation		8.50			1-15-2020		5,625,000		5,688,281
Woodside Finance Limited 144A		8.75			3-1-2019		405,000		438,762
									8,927,851
Financials: 1.09%
Banks: 0.77%
ABN AMRO Bank NV 144A		4.80			4-18-2026		750,000		799,741
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		679,052
Corporación Andina de Fomento		4.38			6-15-2022		958,000		1,032,111
Nielsen Holding and Finance BV 144A		5.00			2-1-2025		875,000		905,625
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		415,000		427,450
Preferred Term Securities XII Limited (a)†		0.00			12-24-2033		635,000		0
									3,843,979
Diversified Financial Services: 0.32%
GE Capital International Funding Company		2.34			11-15-2020		527,000		529,498
Sensata Technologies BV 144A		6.25			2-15-2026		400,000		439,000
Tyco Electronics Group SA		3.50			2-3-2022		625,000		648,516
									1,617,014
Health Care: 1.94%
Pharmaceuticals: 1.94%
Valeant Pharmaceuticals International Incorporated 144A		5.50			3-1-2023		2,200,000		1,848,000
Valeant Pharmaceuticals International Incorporated 144A		5.50			11-1-2025		375,000		382,969

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

Portfolio of investments—October 31, 2017 Wells Fargo Multi-Sector Income Fund 29

Security name	Interest rate			Maturity date		Principal		Value
Pharmaceuticals (continued)
Valeant Pharmaceuticals International Incorporated 144A		5.63	%		12-1-2021	$	700,000	$	638,750
Valeant Pharmaceuticals International Incorporated 144A		5.88			5-15-2023		770,000		649,688
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		4,575,000		3,843,000
Valeant Pharmaceuticals International Incorporated 144A		6.38			10-15-2020		872,000		866,550
Valeant Pharmaceuticals International Incorporated 144A		6.50			3-15-2022		325,000		344,906
Valeant Pharmaceuticals International Incorporated 144A		6.75			8-15-2021		425,000		411,719
Valeant Pharmaceuticals International Incorporated 144A		7.00			3-15-2024		575,000		622,438
Valeant Pharmaceuticals International Incorporated 144A		7.25			7-15-2022		75,000		72,094
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		10,000		9,863
									9,689,977
Industrials: 0.87%
Commercial Services & Supplies: 0.54%
GFL Environmental Incorporated 144A		9.88			2-1-2021		500,000		531,875
Ritchie Brothers Auctioneers Incorporated 144A		5.38			1-15-2025		2,050,000		2,157,625
									2,689,500
Machinery: 0.05%
Sensata Technologies BV 144A		5.00			10-1-2025		235,000		250,275
Professional Services: 0.12%
IHS Markit Limited 144A		4.75			2-15-2025		600,000		634,500
Road & Rail: 0.16%
Canadian Pacific Railway Company		4.50			1-15-2022		750,000		802,625
Materials: 0.98%
Containers & Packaging: 0.60%
Ardagh Packaging Finance plc 144A		4.25			9-15-2022		375,000		386,250
Ardagh Packaging Finance plc 144A		6.00			2-15-2025		1,700,000		1,804,125
Ardagh Packaging Finance plc 144A		7.25			5-15-2024		725,000		796,594
									2,986,969
Metals & Mining: 0.38%
ArcelorMittal SA		6.13			6-1-2025		275,000		317,204
Glencore Finance Canada Limited 144A		4.25			10-25-2022		750,000		793,069
Vale Overseas Limited		4.38			1-11-2022		750,000		782,100
									1,892,373
Telecommunication Services: 1.43%
Diversified Telecommunication Services: 1.31%
Intelsat Jackson Holdings SA		5.50			8-1-2023		5,775,000		4,930,406
Intelsat Luxembourg SA		7.75			6-1-2021		1,970,000		1,236,175
Virgin Media Finance plc 144A		6.38			4-15-2023		365,000		380,513
									6,547,094
Wireless Telecommunication Services: 0.12%
Globo Communicacoes Participacoes SA 144A		4.88			4-11-2022		595,000		621,775

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

30 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2017

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 0.14%
Electric Utilities: 0.14%
Comision Federal de Electricidad 144A		4.88	%		5-26-2021	$	650,000	$	691,600
Total Yankee Corporate Bonds and Notes (Cost $47,572,502)									45,805,822
	Yield					Shares
Short-Term Investments: 5.13%
Investment Companies: 5.13%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.96					25,651,250		25,651,250
Total Short-Term Investments (Cost $25,651,250)									25,651,250

Total investments in securities (Cost $685,572,826)	136.53	%		682,398,131
Other assets and liabilities, net	(36.53	)		(182,574,101	)
Total net assets	100.00	%	$	499,824,030

± 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.

±± The coupon of the security is adjusted based on the principal and interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages.

(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.

‡ Security is valued using significant unobservable inputs.

† Non-income-earning 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.

(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. The rate represents the current interest rate if the loan is partially funded.

(p) Issuer is undergoing bankruptcy proceedings.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

## All or a portion of this security is segregated for when-issued securities and unfunded loans.

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized  gains (losses)		Net change in unrealized  gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Wells Fargo Government Money Market Fund Select Class		33,404,630		307,738,352		315,491,732		25,651,250	$	0	$	0	$	182,315	$	25,651,250		5.13	%

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

Statement of assets and liabilities—October 31, 2017 Wells Fargo Multi-Sector Income Fund 31

Assets
Investments in unaffiliated securities, at value (cost $659,921,576)	$	656,746,881
Investments in affiliated securities, at value (cost $25,651,250)		25,651,250
Foreign currency, at value (cost $751,413)		743,694
Receivable for investments sold		1,729,680
Principal paydown receivable		53,390
Receivable for interest		8,527,137
Prepaid expenses and other assets		14,722
Total assets		693,466,754
Liabilities
Secured borrowing payable		187,000,000
Dividends payable		3,759,161
Payable for investments purchased		1,938,884
Advisory fee payable		322,368
Administration fee payable		29,306
Trustees’ fees and expenses payable		2,754
Accrued expenses and other liabilities		590,251
Total liabilities		193,642,724
Total net assets	$	499,824,030
NET ASSETS CONSIST OF
Paid-in capital	$	536,127,462
Overdistributed net investment income		(3,872,518	)
Accumulated net realized losses on investments		(29,163,549	)
Net unrealized losses on investments		(3,267,365	)
Total net assets	$	499,824,030
NET ASSET VALUE PER SHARE
Based on $499,824,030 divided by 34,939,684 shares issued and outstanding (100,000,000 shares authorized)		$14.31

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

32 Wells Fargo Multi-Sector Income Fund Statement of operations—year ended October 31, 2017

Investment income
Interest (net of foreign withholding taxes of $424,991)	$	45,196,946
Dividends		759,542
Income from affiliated securities		182,315
Total investment income		46,138,803
Expenses
Advisory fee		4,134,415
Administration fee		375,856
Custody and accounting fees		200,147
Professional fees		660,085
Shareholder report expenses		350,532
Trustees’ fees and expenses		22,883
Transfer agent fees		44,672
Interest expense		3,369,579
Other fees and expenses		47,219
Total expenses		9,205,388
Net investment income		36,933,415
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(19,670,600	)
Foreign currency transactions		(1,341,773	)
Net realized losses on investments		(21,012,373	)
Net change in unrealized gains (losses) on investments		27,791,101
Net realized and unrealized gains (losses) on investments		6,778,728
Net increase in net assets resulting from operations	$	43,712,143

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

Statement of changes in net assets Wells Fargo Multi-Sector Income Fund 33

	Year ended October 31, 2017			Year ended October 31, 2016
Operations
Net investment income	$	36,933,415		$	45,426,982
Net realized losses on investments		(21,012,373	)		(11,124,183	)
Net change in unrealized gains (losses) on investments		27,791,101			24,589,506
Net increase in net assets resulting from operations		43,712,143			58,892,305
Distributions to shareholders from
Net investment income		(26,702,083	)		(40,758,130	)
Tax basis return of capital		(19,927,206	)		(6,993,269	)
Total distributions to shareholders		(46,629,289	)		(47,751,399	)
Capital share transactions
Cost of shares repurchased		(88,098,943	)		(11,526,575	)
Net decrease in net assets resulting from capital share transactions		(88,098,943	)		(11,526,575	)
Total decrease in net assets		(91,016,089	)		(385,669	)
Net assets
Beginning of period		590,840,119			591,225,788
End of period	$	499,824,030		$	590,840,119
Overdistributed net investment income	$	(3,872,518	)	$	(3,954,254	)

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

34 Wells Fargo Multi-Sector Income Fund Statement of cash flows—year ended October 31, 2017

Cash flows from operating activities:
Net increase in net assets resulting from operations	$	43,712,143
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
Purchase of securities		(342,715,078	)
Proceeds from the sale of securities		456,454,916
Paydowns		12,496,512
Amortization		(1,236,857	)
Proceeds from sale of short-term securities, net		7,753,380
Decrease in receivable for investments sold		1,190,692
Increase in principal paydown receivable		(46,236	)
Decrease in receivable for interest		3,175,193
Increase in prepaid expenses and other assets		(2,400	)
Decrease in payable for investments purchased		(5,385,654	)
Decrease in advisory fee payable		(58,172	)
Decrease in administration fee payable		(5,289	)
Increase in trustees’ fees and expenses payable		1,477
Increase in accrued expenses and other liabilities		284,334
Litigation payments received		3,276
Net realized losses on investments		19,673,876
Net change in unrealized gains (losses) on investments		(27,798,812	)
Net cash provided by operating activities		167,497,301
Cash flows from financing activities:
Decrease in secured borrowing payable		(33,000,000	)
Cost of shares repurchased		(89,084,448	)
Cash distributions paid		(46,694,393	)
Net cash used in financing activities		(168,778,841	)
Net decrease in cash		(1,281,540	)
Cash (including foreign currency):
Beginning of period	$	2,025,234
End of period	$	743,694
Supplemental cash disclosure
Cash paid for interest	$	3,285,061

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

Financial highlights Wells Fargo Multi-Sector Income Fund 35

(For a share outstanding throughout each period)

	Year ended October 31
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$14.35			$14.06			$16.10			$16.40			$17.01
Net investment income		0.97	1		1.08			1.10	1		1.14	1		1.18
Net realized and unrealized gains (losses) on investments		0.18			0.33			(1.98	)		(0.24	)		(0.59	)
Total from investment operations		1.15			1.41			(0.88	)		0.90			0.59
Distributions to shareholders from
Net investment income		(0.70	)		(0.97	)		(0.87	)		(0.91	)		(1.20	)
Tax basis return of capital		(0.53	)		(0.17	)		(0.29	)		(0.29	)		0.00
Total distributions to shareholders		(1.23	)		(1.14	)		(1.16	)		(1.20	)		(1.20	)
Anti-dilutive effect of shares repurchased		0.04			0.02			0.00			0.00			0.00
Net asset value, end of period		$14.31			$14.35			$14.06			$16.10			$16.40
Market value, end of period		$13.05			$12.66			$12.02			$14.19			$14.47
Total return based on market value2		13.07	%		15.66	%		(7.34	)%		6.55	%		(5.44	)%
Ratios to average net assets (annualized)
Net expenses3		1.68	%		1.39	%		1.24	%		1.21	%		1.24	%
Net investment income3		6.73	%		7.94	%		7.33	%		6.95	%		7.04	%
Supplemental data
Portfolio turnover rate		38	%		29	%		31	%		41	%		40	%
Net assets, end of period (000s omitted)		$499,824			$590,840			$591,226			$677,004			$689,573
Borrowings outstanding, end of period (000s omitted)		$187,000			$220,000			$230,000			$230,000			$230,000
Asset coverage per $1,000 of borrowing, end of period		$3,673			$3,686			$3,570			$3,944			$3,998

¹  Calculated based upon average shares outstanding

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

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

Year ended October 31, 2017	0.61	%
Year ended October 31, 2016	0.44	%
Year ended October 31, 2015	0.24	%
Year ended October 31, 2014	0.07	%
Year ended October 31, 2013	0.07	%

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

36 Wells Fargo Multi-Sector Income Fund Notes to financial statements

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

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

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

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

Foreign currency translation

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

Notes to financial statements Wells Fargo Multi-Sector Income Fund 37

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

Forward foreign currency contracts

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Loans

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

Security transactions and income recognition

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

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

Dividend income is recognized on the ex-dividend date.

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

Distributions to shareholders

Under a monthly distribution plan, the Fund pays distributions to shareholders at an annual minimum fixed rate of 9% based on the Fund’s average monthly net asset value per share over the prior 12 months. Under the managed distribution plan, monthly distributions may be sourced from income, paid-in capital, and/or capital gains, if any. To the extent that sufficient investment income is not available on a monthly basis, the Fund may distribute paid-in capital and/or capital gains, if any, in order to maintain its managed distribution level.

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

38 Wells Fargo Multi-Sector Income Fund Notes to financial statements

Federal and other taxes

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

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

As of October 31, 2017, the aggregate cost of all investments for federal income tax purposes was $690,427,638 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	29,575,706
Gross unrealized losses		(37,605,213	)
Net unrealized losses	$	(8,029,507	)

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or the net asset value per share. The primary permanent differences causing such reclassifications are due to bond premiums, foreign currency transactions, and paydown losses. At October 31, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Overdistributed net investment income	Accumulated net realized losses on investments
$(86,701,155)	$(10,149,596)	$96,850,751

As of October 31, 2017, the Fund had capital loss carryforwards which consist of $10,706,157 in short-term capital losses and $13,671,135 in long-term capital losses.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements Wells Fargo Multi-Sector Income Fund 39

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of October 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	8,486,138	$	0	$	8,486,138
Asset-backed securities		0		3,178,298		700,000		3,878,298
Common stocks
Energy		194,876		0		0		194,876
Materials		932		0		0		932
Corporate bonds and notes		0		349,168,343		0		349,168,343
Foreign corporate bonds and notes		0		10,340,578		0		10,340,578
Foreign government bonds		0		122,141,469		0		122,141,469
Loans		0		72,727,606		20,926,735		93,654,341
Municipal obligations		0		45,286		0		45,286
Non-agency mortgage-backed securities		0		22,785,267		0		22,785,267
Rights
Utilities		0		245,531		0		245,531
Yankee corporate bonds and notes		0		45,798,529		7,293		45,805,822
Short-term investments
Investment companies		25,651,250		0		0		25,651,250
Total assets	$	25,847,058	$	634,917,045	$	21,634,028	$	682,398,131

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At October 31, 2017, the Fund had no material transfers between Level 1 and Level 2.

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

	Asset-backed securities		Loans			Yankee corporate bonds and notes			Total
Balance as of October 31, 2016	$	0	$	5,626,538		$	7,293		$	5,633,831
Accrued discounts (premiums)		0		20,738			17,712			38,450
Realized gains (losses)		0		32,824			0			32,824
Change in unrealized gains (losses)		0		104,000			(17,712	)		86,288
Purchases		700,000		21,772,445			0			22,472,445
Sales		0		(9,594,325	)		0			(9,594,325	)
Transfers into Level 3		0		5,015,790			0			5,015,790
Transfers out of Level 3		0		(2,051,275	)		0			(2,051,275	)
Balance as of October 31, 2017	$	700,000	$	20,926,735		$	7,293		$	21,634,028
Change in unrealized gains (losses) relating to securities still held at October 31, 2017	$	0	$	111,155		$	(17,712	)	$	93,443

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

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

40 Wells Fargo Multi-Sector Income Fund Notes to financial statements

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

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

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

Administration fee

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

Out-of-pocket reimbursements

During the year ended October 31, 2017, State Street Bank and Trust Company (“State Street’), the Fund’s custodian, reimbursed the Fund $20,366 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $9,019 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses during the period the Fund was erroneously billed.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund had $2,645,781 and $27,657,338 in interfund purchases and sales, respectively, during the year ended October 31, 2017.

5. CAPITAL SHARE TRANSACTIONS

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

On December 17, 2015, the Fund announced an open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund was authorized to repurchase up to 10% of its outstanding shares in open market transactions through December 16, 2016. The Fund’s Board of Trustees had delegated to Funds Management full discretion to administer the Buyback Program including the determination of the amount and timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations. The Buyback Program ended at the close of business on December 16, 2016. During the year ended October 31, 2017, the Fund purchased 57,556 of its shares on the open market at a total cost of $729,188 (weighted average price per share of $12.65). The weighted average discount of these repurchased shares was 11.60%.

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

6. BORROWINGS

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

Notes to financial statements Wells Fargo Multi-Sector Income Fund 41

if the amount drawn on the Facility is over 75% of the committed amount. The financial institution holds a security interest in all the assets of the Fund as collateral for the borrowing.

During the year ended October 31, 2017, the Fund had average borrowings outstanding of $203,183,562 at an average interest rate of 1.66% and paid interest in the amount of $3,369,579, which represents 0.61% of its average daily net assets.

7. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended October 31, 2017 were $275,691,891 and $319,157,038, respectively.

As of October 31, 2017, the Fund had unfunded term loan commitments of $1,911,875.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended October 31, 2017 and October 31, 2016 were as follows:

	Year ended October 31
	2017		2016
Ordinary income		$26,702,083	$	40,758,130
Tax basis return of capital		19,927,206		6,993,269

As of October 31, 2017, the components of distributable earnings on a tax basis were as follows:

Unrealized losses	Capital loss carryforward
$(8,108,928)	$(24,377,292)

9. INDEMNIFICATION

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

10. NEW ACCOUNTING PRONOUNCEMENT

In August 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. Management has evaluated the impact of adopting this ASU and determined that it will not result in any material changes to the disclosures in the financial statements. This ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those financial years, with early adoption permitted.

In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a Consensus of the Emerging Issues Task Force), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts described as restricted cash and restricted cash equivalents should be included with the cash and cash equivalents in reconciling the beginning and end of period total amounts shown on the statement of cash flows. Management has evaluated the impact of adopting this ASU and determined that it will not result in any material changes to the disclosures in the financial statements. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017.

11. SUBSEQUENT DISTRIBUTIONS

The Fund declared the following distributions to shareholders:

Declaration date	Record date	Payable date	Per share amount
October 27, 2017	November 15, 2017	December 1, 2017	$0.10772
November 10, 2017	December 13, 2017	January 2, 2018	0.10770

These distributions are not reflected in the accompanying financial statements.

42 Wells Fargo Multi-Sector Income Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO MULTI-SECTOR INCOME FUND:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Multi-Sector Income Fund (the “Fund”), as of October 31, 2017, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodian and brokers, or by other appropriate audit procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Multi-Sector Income Fund as of October 31, 2017, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

December 21, 2017

Other information (unaudited) Wells Fargo Multi-Sector Income Fund 43

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 2.84% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended October 31, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $759,542 of income dividends paid during the fiscal year ended October 31, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended October 31, 2017, $26,767,187 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 853 of the Internal Revenue Code, the Fund expects to designate amounts as foreign taxes paid for the fiscal year ended October 31, 2017. Additional details will be available in the semiannual report.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

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

BOARD OF TRUSTEES AND OFFICERS

The following table provides basic information about the Board of Trustees (the “Trustees”) and Officers of the Fund. Each of the Trustees and Officers¹ listed below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust, and four closed-end funds, including the Fund (collectively the “Fund Complex”). The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. The Board of Trustees is classified into three classes of which one is elected annually. Each Trustee serves a three-year term concurrent with the class from which the Trustee is elected. Each Officer serves an indefinite term.

Independent Trustees

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

Other information (unaudited) Wells Fargo Multi-Sector Income Fund 45

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer	Current other public company or investment company directorships
Judith M. Johnson (Born 1949)	Trustee, since 2010; Audit Committee Chairman, since 2010	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
Class III - Non-Interested Trustees to serve until 2019 Annual Meeting of Shareholders
Peter G. Gordon*** (Born 1942)	Trustee, from 2010 to 2017; Chairman, from 2010 to 2017	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Timothy J. Penny**** (Born 1951)	Trustee, since 2010; Chairman, effective 2018; Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
James G. Polisson***** (Born 1959)	Trustee, effective 2018; Advisory Board Member, from 2017 to 2018	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2003	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
Pamela Wheelock***** (Born 1959)	Trustee, effective 2018; Advisory Board Member, from 2017 to 2018	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	Asset Allocation Trust

* Olivia Mitchell will become Chairman of the Governance Committee effective January 1, 2018.

** Jane Freeman will become Chair Liaison effective January 1, 2018.

*** Peter Gordon will retire on December 31, 2017.

**** Timothy Penny will become Chairman effective January 1, 2018.

***** James Polisson and Pamela Wheelock each will become a Trustee effective January 1, 2018.

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

Officers

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

¹ Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 funds in the Fund Complex.

Other information (unaudited) Wells Fargo Multi-Sector Income Fund 47

BOARD CONSIDERATION OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Multi-Sector Income Fund (the “Fund”) must determine whether to approve the continuation of the Fund’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Fund, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved: (i) an investment advisory agreement with Wells Fargo Funds Management, LLC (“Funds Management”), (ii) an investment sub-advisory agreement with Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management; and (iii) an investment sub-advisory agreement with First International Advisors, LLC (“FIA”), an affiliate of Funds Management. The investment advisory agreement with Funds Management and the investment sub-advisory agreements with WellsCap and FIA (each, a “Sub-Adviser” and together, the “Sub-Advisers”) are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Advisers and the continuation of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Advisers were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Advisers about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements and determined that the compensation payable to Funds Management and the Sub-Advisers is reasonable. The Board considered the continuation of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Advisers under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Advisers, and a description of Funds Management’s and the Sub-Advisers’ business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

The Board evaluated the ability of Funds Management and the Sub-Advisers to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Advisers. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a custom peer group that included funds

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

selected by Broadridge Inc. (“Broadridge”) and additional funds that were determined by Funds Management to be similar to the Fund (the “Custom Peer Group”), and in comparison to the Fund’s benchmark index and to other comparative data. The Board received a description of the methodology used by Broadridge and Funds Management to select the funds in the Custom Peer Group and discussed the limitations inherent in the use of other peer groups. The Board noted that the performance of the Fund was higher than or in range of the average performance of the Custom Peer Group for all periods under review except the three- and five-year periods. The Board also noted that the performance of the Fund was higher than its benchmark, the Multi-Sector Income Blended Index, which is a proprietary index used by the Board to help it assess the Fund’s relative performance, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratio and its various components, including actual management fees, and custodian and other non-management fees. The Board considered this ratio in comparison to the median ratio of funds in the Custom Peer Group and in comparison to the median ratio of funds in an expense group that was determined by Broadridge to be similar to the Fund (the “Broadridge Group”, and together with the Custom Peer Group, the “Expense Groups”). Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge and Funds Management to select the funds in the Expense Groups, and an explanation from Broadridge of how funds comprising Broadridge expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratio of the Fund was lower than the median net operating expense ratios of the Expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rate that is payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rate”), both on a stand-alone basis and on a combined basis with the Fund’s contractual administration fee rate (the “Management Rate”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to each of the Sub-Advisers for investment sub-advisory services (the “Sub-Advisory Agreement Rate”).

Among other information reviewed by the Board was a comparison of the Management Rate of the Fund with those of other funds in the Expense Groups at a common asset level. The Board noted that the Management Rate of the Fund was lower than the average rates for both Expense Groups.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Advisers for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Advisers, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Advisers, the Board ascribed limited relevance to the allocation of the advisory fee between them.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the Advisory Agreement Rate and each Sub-Advisory Agreement Rate was reasonable.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Advisers from providing services to the fund family as a whole, noting that the Sub-Advisers’ profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

The Board considered the extent to which there may be sharing with the Fund of potential economies of scale in the provision of advisory services to the Fund. The Board noted that, as is typical of closed-end funds, there are no breakpoints in

Other information (unaudited) Wells Fargo Multi-Sector Income Fund 49

the Management Rate. Although the Fund would not share in any potential economies of scale through contractual breakpoints, the Board noted that competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board concluded that the Fund’s fee waiver and expense arrangements constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders. The Board also noted that it would have opportunities to revisit the Management Rate as part of future contract reviews.

Other benefits to Funds Management and the Sub-Advisers

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Advisers, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Advisers’ business as a result of their relationships with the Fund. The Board also reviewed information about soft dollar credits earned and utilized by WellsCap and commissions earned by affiliated brokers from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Advisers, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for an additional one-year period and determined that the compensation payable to Funds Management and the Sub-Advisers is reasonable.

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

AUTOMATIC DIVIDEND REINVESTMENT PLAN

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

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

List of abbreviations Wells Fargo Multi-Sector Income Fund 51

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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

INR —  Indian rupee

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

PJSC —  Public Joint Stock Company

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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Transfer Agent, Registrar, Shareholder Servicing

Agent & Dividend Disbursing Agent

Computershare Trust Company, N.A.

P.O. Box 505000

Louisville, Kentucky 40233

1-800-730-6001

Website: wellsfargofunds.com

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

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

307197 12-17 AMSI/AR143 10-17

ITEM 2. CODE OF ETHICS

(a) As of the end of the period covered by the report, Wells Fargo Multi-Sector Income Fund has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.

(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Trustees of Wells Fargo Multi-Sector Income Fund has determined that Judith Johnson is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mrs. Johnson is independent for purposes of Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by the Registrant’s audit committee.

	Fiscal year ended October 31, 2017		Fiscal year ended October 31, 2016
Audit fees	$	54,322	$	53,992
Audit-related fees		—		—
Tax fees (1)		4,150		3,945
All other fees		—		—
	$	58,472	$	57,937

⁽¹⁾  Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services for the Wells Fargo Multi-Sector Income Fund; (2) non-audit tax or compliance consulting or training services provided to the Wells Fargo Multi-Sector Income Fund by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to Wells Fargo Multi-Sector Income Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Wells Fargo Multi-Sector Income Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(f) Not applicable

(g) Not applicable

(h) Not applicable

3

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

The entire Board of Trustees is acting as the registrant’s audit committee. The following comprise the audit committee: William Ebsworth, Jane Freeman, Peter Gordon, Isaiah Harris, Jr., Judith Johnson, David Larcker, Olivia Mitchell, Timothy Penny, James G. Polisson, Michael Scofield and Pamela Wheelock.

ITEM 6. INVESTMENTS

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

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

WELLS FARGO FUNDS TRUST

WELLS FARGO MASTER TRUST

WELLS FARGO VARIABLE TRUST

ASSET ALLOCATION TRUST

WELLS FARGO GLOBAL DIVIDEND OPPORTUNITY FUND

WELLS FARGO INCOME OPPORTUNITIES FUND

WELLS FARGO MULTI-SECTOR INCOME FUND

WELLS FARGO UTILITIES & HIGH INCOME FUND

WELLS FARGO FUNDS MANAGEMENT, LLC

PROXY VOTING POLICIES AND PROCEDURES

REVISED AS OF JANUARY 26, 2016

Scope of Policies and Procedures. These Policies and Procedures (“Procedures”) are used to determine how to vote proxies relating to portfolio securities held by the series of Wells Fargo Funds Trust, Wells Fargo Master Trust, Wells Fargo Variable Trust, Asset Allocation Trust, Wells Fargo Advantage Global Dividend Opportunity Fund, Wells Fargo Advantage Income Opportunities Fund, Wells Fargo Advantage Multi-Sector Income Fund, and Wells Fargo Advantage Utilities & High Income Fund (the “Trusts”) except for those series that exclusively hold non-voting securities (hereafter, all such series, and all such Trusts not having separate series, holding voting securities are referred to as the “Funds”).

Voting Philosophy. The Funds and Wells Fargo Funds Management, LLC (“Funds Management”) have adopted these Procedures to ensure that proxies are voted in the best interests of Fund shareholders, without regard to any relationship that any affiliated person of the Fund (or an affiliated person of such affiliated person) may have with the issuer. Funds Management exercises its voting responsibility, as a fiduciary, with the goal of maximizing value to shareholders consistent with governing laws and the investment policies of each Fund. While securities are not purchased to exercise control or to seek to effect corporate change through share ownership, the Funds support sound corporate governance practices within companies in which they invest.

Board of Trustees. The Board of Trustees of each Trust (the “Board”) has delegated the responsibility for voting proxies relating to the Funds’ portfolio securities to Funds Management. The Board retains the authority to make or ratify any voting decisions or approve any changes to these Procedures as the Board deems appropriate. Funds Management will provide reports to the Board regarding voting matters when and as reasonably requested by the Board. The Board shall review these Procedures as often as it deems appropriate to consider whether any revisions are warranted. On an annual basis, the Board shall receive and review a report from Funds Management on the proxy voting process.

4

Proxy Committee. The Funds Management Proxy Voting Committee (the “Proxy Committee”) shall be responsible for overseeing the proxy voting process to ensure its implementation in conformance with these Procedures. The Proxy Committee shall coordinate with Funds Management Risk and Compliance to monitor Institutional Shareholder Services (“ISS”), the proxy voting agent for Funds Management, to determine that ISS is accurately applying the Procedures as set forth herein. The Proxy Committee shall review the continuing appropriateness of the Procedures set forth herein, recommend revisions to the Board as necessary and provide an annual update to the Board on proxy voting activity.

Meetings. The Proxy Committee shall convene as needed and when discretionary voting determinations need to be considered, and shall have the authority to act by vote of a majority of the Proxy Committee members available at that time. The Proxy Committee shall also meet at least annually to review the Procedures and shall coordinate with Funds Management Risk and Compliance to review the performance of ISS in exercising its proxy voting responsibilities.

Voting Discretion. In all cases, the Proxy Committee will exercise its voting discretion in accordance with the voting philosophy of the Funds. In cases where a proxy item is forwarded by ISS to the Proxy Committee, the Proxy Committee may be assisted in its voting decision through receipt of: (i) independent research and voting recommendations provided by ISS or other independent sources; (ii) input from the investment sub-adviser responsible for purchasing the security; and (iii) information provided by company management and shareholder groups.

Membership. The voting members of the Proxy Committee shall be Tom Biwer, Travis Keshemberg, Erik Sens, Aldo Ceccarelli and Melissa Duller. Changes to the membership of the Proxy Committee will be made only with Board approval. Upon departure from Funds Management, a member’s position on the Proxy Committee will automatically terminate.

Voting Policy. Proxies generally shall be voted in accordance with the recommendations of proxy advisor ISS. However, the following proxy items shall be referred to the Proxy Committee for case-by-case review and vote determination:

1. Proxy items for meetings deemed of “high importance” where ISS opposes management recommendations

2. Mutual fund proxies

The term “high importance” is defined as those items designated Proxy Level 6, 5, or 4 by ISS, which include proxy contests, mergers, capitalization proposals and anti-takeover defenses. (Further detail appears in Appendix A.)

The Proxy Committee may consult Fund sub-advisers on specific proxy voting issues as it deems appropriate or if a sub-adviser makes a recommendation regarding a proxy voting issue. As a general matter, however, proxies are voted consistently on the same matter when securities of an issuer are held by multiple Funds.

Voting decisions made by the Proxy Committee will be reported to ISS to ensure that the vote is registered in a timely manner and included in Form N-PX reporting.

Practical Limitations to Proxy Voting. While Funds Management uses its best efforts to vote proxies, in certain circumstances it may be impractical or impossible for Funds Management to vote proxies (e.g., limited value or unjustifiable costs). For example, in accordance with local law or business practices, many foreign companies prevent the sales of shares that have been voted for a certain period beginning

5

prior to the shareholder meeting and ending on the day following the meeting (“share blocking”). Due to these restrictions, Funds Management must balance the benefits to its clients of voting proxies against the potentially serious portfolio management consequences of a reduced flexibility to sell the underlying shares at the most advantageous time. As a result, Funds Management will generally not vote those proxies in the absence of an unusual, significant vote or compelling economic importance. Additionally, Funds Management may not be able to vote proxies for certain foreign securities if Funds Management does not receive the proxy statement in time to vote the proxies due to custodial processing delays.

Securities on Loan. As a general matter, securities on loan will not be recalled to facilitate proxy voting (in which case the borrower of the security shall be entitled to vote the proxy). However, if the Proxy Committee is aware of an item in time to recall the security and has determined in good faith that the importance of the matter to be voted upon outweighs the loss in lending revenue that would result from recalling the security (i.e., if there is a controversial upcoming merger or acquisition, or some other significant matter), the security will be recalled for voting.

Conflicts of Interest. Funds Management may have a conflict of interest regarding a proxy to be voted upon if, for example, Funds Management or its affiliates have other relationships with the issuer of the proxy. In most instances, conflicts of interest are avoided through a strict and objective application of the voting guidelines attached hereto. However, when the Proxy Committee is aware of a material conflict of interest regarding a matter that would otherwise require a vote by the Proxy Committee, the Proxy Committee shall address the material conflict by using any of the following methods:

1. instructing ISS to vote in accordance with the recommendation ISS makes to its clients;

2. disclosing the conflict to the Board and obtaining their consent before voting;

3. submitting the matter to the Board to exercise its authority to vote on such matter;

4. engaging an independent fiduciary who will direct the Proxy Committee on voting instructions for the proxy;

5. consulting with outside legal counsel for guidance on resolution of the conflict of interest;

6. erecting information barriers around the person or persons making voting decisions;

7. voting in proportion to other shareholders (“mirror voting”); or

8. voting in other ways that are consistent with each Fund’s obligation to vote in the best interests of its shareholders.

The Proxy Committee will not permit its votes to be influenced by any conflict of interest that exists for any other affiliated person of the Fund (such as a sub-adviser or principal underwriter) or any affiliated persons of such affiliated persons and the Proxy Committee will vote all such matters without regard to the conflict.

Funds Management may also have a conflict of interest regarding a proxy to be voted on if a member of the Board has an affiliation, directly or indirectly, with a public or private company (an “Identified Company”). Identified Companies include a Board member’s employer, as well as any company of which the Board member is a director or officer or a 5% or more shareholder. The Proxy Committee shall address such a conflict by instructing ISS to vote in accordance with the recommendation ISS makes to its clients.

Disclosure of Policies and Procedures. Each Fund shall disclose in its statement of additional information a description of the policies and procedures it uses to determine how to vote proxies relating to securities held in its portfolio. In addition, each Fund shall disclose in its semi- and annual reports that a description of its proxy voting policies and procedures is available without charge, upon request, by calling 1-800-222-8222, on the Fund’s web site at www.wellsfargo.com/advantagefunds and on the Securities and Exchange Commission’s website at http://www.sec.gov.

6

Disclosure of Proxy Voting Record. Each Trust shall file with the Commission an annual report on Form N-PX not later than August 31 of each year (beginning August 31, 2004), containing the Trust’s proxy voting record for the most recent twelve-month period ended June 30.

Each Fund shall disclose in its statement of additional information and semi- and annual reports that information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Funds’ web site at www.wellsfargo.com/advantagefunds or by accessing the Commission’s web site at www.sec.gov.

Each Fund shall disclose the following information on Form N-PX for each matter relating to a portfolio security considered at any shareholder meeting held during the period covered by the report and with respect to which the Fund was entitled to vote:

1. The name of the issuer of the portfolio security;

2. The exchange ticker symbol of the portfolio security;

3. The Council of Uniform Securities Identification Procedures (“CUSIP”) number for the portfolio security (unless the CUSIP is not available through reasonably practicable means, in which case it will be omitted);

4. The shareholder meeting date;

5. A brief identification of the matter voted on;

6. Whether the matter was proposed by the issuer or by a security holder;

7. Whether the Fund cast its vote on the matter;

8. How the Fund cast its vote (e.g. for or against a proposal, or abstain; for or withhold regarding election of directors); and

9. Whether the Fund cast its vote for or against management.

Form N-PX shall be made available to Fund shareholders through the SEC web site.

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APPENDIX A

TO

PROXY VOTING POLICIES AND PROCEDURES

DEFINITION OF PROXY LEVELS

Proxy Level	Meetings with . . .	Examples of Proposals
6	Proxy Contests	Elect Directors (management slate) Elect Directors (opposition slate)
5	Significant Transactions	Mergers, acquisitions, reorgs, restructurings, spinoffs Issue shares in connection with acquisitions Sale/purchase of company assets Adjourn meeting to solicit additional votes
4	Capitalization Proposals & Antitakeover Defenses	Increase authorized shares New classes of stock Share repurchase programs Anti-takeover provisions (poison pills, NOL pills)
3	Compensation Proposals	Stock compensation & executive bonus plans Say on golden parachutes Say on pay/frequency ESOPs Stock option repricing
2	Shareholder Proposals	Require independent chair Classify/declassify board Proxy Access Majority vote standard Supermajority vote requirements Cumulative voting Right to call special meetings Right to act by written consent
1	Uncontested Director Elections and Routine Items	Elect directors Ratify auditors

APPENDIX B

TO

PROXY VOTING POLICIES AND PROCEDURES

Members of Funds Management Proxy Voting Committee

Thomas C. Biwer, CFA

Mr. Biwer has over 40 years of experience in finance and investments. He has served as an investment analyst, portfolio strategist, and corporate pension officer. He received B.S. and M.B.A. degrees from the University of Illinois and has earned the right to use the CFA designation.

Erik J. Sens, CFA

Mr. Sens has over 25 years of investment industry experience. He has served as an investment analyst and portfolio manager. He received undergraduate degrees in Finance and Philosophy from the University of San Francisco and has earned the right to use the CFA designation.

Travis L. Keshemberg, CFA

Mr. Keshemberg has over 20 years of experience in the investment industry. He has served as a overlay portfolio manager and investment consultant. He holds a Master’s Degree from the University of Wisconsin – Milwaukee and Bachelor’s degree from Marquette University. He has earned the right to use the CFA, CIPM and CIMA designations.

Aldo Ceccarelli, CFA

Mr. Ceccarelli has over 14 years of investment industry experience. He has served as a fixed income analyst and head of the Funds Management investments team. He earned his bachelor’s degree in business administration with an emphasis in economics from Santa Clara University and has earned the right to use the CFA designation.

Melissa Duller, CIMA

Ms. Duller has over 16 years of experience in the investment industry. She has served as an investment analyst and as a regional investment manager for high net worth individuals, personal trusts, and charitable foundations. She has earned the right to use the CIMA designation.

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

Christopher Y. Kauffman, CFA

Mr. Kauffman is a portfolio manager for the Wells Capital Management Fixed Income team. He joined WellsCap from Tattersall Advisory Group (TAG), where he served in a similar role since 2003. He began his investment industry career in 1997 as an investment officer for NISA Investment Advisors, where he was responsible for MBS analysis, risk assessment, and trading. He earned a bachelor’s degree in finance and economics and a master’s degree in business administration with an emphasis in finance from Washington University in St. Louis. He has earned the right to use the CFA designation and is a member of the St. Louis Society of Financial Analysts and the CFA Institute.

Michael Lee

Mr. Lee is a senior portfolio manager with the First International Advisors team at Wells Capital Management. Mike is one of five senior members of the investment team that forms the Senior Strategy Team. His responsibilities include the day-to-day management and implementation of portfolio strategies. He joined WellsCap from Evergreen Investments, where he served in a similar role since

1992. Prior to this, he worked at Northern Trust Co. Earlier, he held investment positions at JPMorgan Chase and National Westminster Bank. Michael began his investment industry career in 1982. He is a member of the U.K. Society of Investment Professionals.

Niklas Nordenfelt, CFA

Mr. Nordenfelt is currently managing director, senior portfolio manager with the Sutter High Yield Fixed Income team at Wells Capital Management. Niklas joined the Sutter High Yield Fixed Income team of Wells Capital Management in February 2003 as investment strategist. Niklas began his investment career in 1991 and has managed portfolios ranging from quantitative-based and tactical asset allocation strategies to credit driven portfolios. Previous to joining Sutter, Niklas was at Barclays Global Investors (BGI) from 1996-2002 where he was a principal. At BGI, he worked on their international and emerging markets equity strategies after having managed their asset allocation products. Prior to this, Niklas was a quantitative analyst at Fidelity and a portfolio manager and group leader at Mellon Capital Management. He earned a bachelor’s degree in economics from the University of California, Berkeley, and has earned the right to use the CFA designation.

Tony Norris

Mr. Norris is a managing director and senior portfolio manager with the First International Advisors team at Wells Capital Management. Tony is one of five senior members of the investment team that forms the Senior Strategy Team. His responsibilities include developing investment strategies, macro-portfolio allocation, portfolio positioning, and risk management. He joined WellsCap from Evergreen Investments, where he served in a similar role since 1990. Previously, he spent several years in banking, with particular emphasis on foreign exchange. Tony served in senior executive positions at Reserve Asset Managers and Gillett Brothers Fund Management. He began his investment industry career in 1967 at Wallace Brothers Bank. He is a member of the Society of Technical Analysts and is an associate of the International Federation of Technical Analysts.

Alex Perrin

Mr. Perrin is a senior portfolio manager with the First International Advisors team at Wells Capital Management. Alex is one of five senior members of the investment team that forms the Senior Strategy Team. His responsibilities include developing investment strategies, macro-portfolio allocation, portfolio positioning, and risk management. He joined First International Advisors in 1992. Alex earned a bachelor’s degree in mathematics and computer science from Hull University in the U.K. He is a member of the Society of Technical Analysts and an Associate Member of the U.K. Society of Investment Professionals.

Philip Susser

Mr. Susser is currently managing director, senior portfolio manager, and co-head of the Sutter High Yield Fixed Income team at Wells Capital Management. Philip joined the Sutter High Yield Fixed Income team as a senior research analyst in 2001. He has extensive research experience in the cable/satellite, gaming, hotels, restaurants, printing/publishing, telecom, REIT, lodging and distressed sectors. Philip’s investment experience began in 1995 spending three years as a securities lawyer at Cahill Gordon and Shearman & Sterling representing underwriters and issuers of high yield debt. Later, Philip evaluated venture investment opportunities for MediaOne Ventures before joining Deutsche Bank as a research analyst. He received his bachelor’s degree in economics from the University of Pennsylvania and his law degree from the University of Michigan Law School.

Christopher Wightman

Mr. Wightman is a senior portfolio manager with the First International Advisors team at Wells Capital Management. Chris is one of five senior members of the investment team that forms the Senior Strategy

Team. His responsibilities include macro-portfolio allocation, portfolio positioning, and risk management. He joined First International Advisors in 2011 from JP Morgan Chase, where he served as a senior investment manager specializing in global fixed income strategies. Earlier, Chris served as a senior fixed income trader at Fidelity International. He began his investment industry career in 1997 as a Graduate Analyst at Morgan Stanley. Chris earned a B.A. (Hons) in business studies at Staffordshire University (UK).

Peter Wilson

Mr. Wilson is a managing director and senior portfolio manager with the First International Advisors team at Wells Capital Management. Peter is one of five senior members of the investment team that forms the Senior Strategy Team. His responsibilities include macro-portfolio allocation, portfolio positioning, and risk management. He joined WellsCap from Evergreen Investments, where he served in a similar role since 1989. Previously, he served as treasurer and portfolio manager for Axe-Houghton, vice president at Bankers Trust in London and New York, and portfolio manager at Merchant Bankers Kleinwort Benson Ltd. Peter began his investment industry career in 1978 at international stockbrokers James Capel & Co. He was educated in Canada, Hong Kong, and England.

Noah Wise, CFA

Noah Wise is a portfolio manager for the Wells Capital Management Customized Fixed Income team. Noah joined Wells Capital Management in 2008 as a research analyst and later became a portfolio manager in 2013. Prior to joining WellsCap, Noah worked as a lead market maker for Interactive Brokers. He began his investment industry career as an intern for Capital Financial Services in 2001. Noah earned a bachelor’s degree in finance and a master’s degree in business administration with an emphasis in securities analysis from the University of Wisconsin, Madison. He has earned the right to use the CFA designation

OTHER FUNDS AND ACCOUNTS MANAGED

The following table provides information about the registered investment companies and other pooled investment vehicles and accounts managed by the portfolio manager of the Fund as of the Fund’s most recent year ended October 31, 2017.

Niklas Nordenfelt
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		7		4		13
Total assets of above accounts (millions)	$	2,858.2	$	430.2	$	1,508.0
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		0		0
Total assets of above accounts (millions)	$	0	$	0	$	0

Philip Susser
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		7		4		13
Total assets of above accounts (millions)	$	2,858.2	$	430.2	$	1,508.0
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		0		0
Total assets of above accounts (millions)	$	0	$	0	$	0
Christopher Y. Kauffman
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		5		0		4
Total assets of above accounts (millions)	$	4,052.47	$	0	$	319.93
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		0		0
Total assets of above accounts (millions)	$	0	$	0	$	0
Tony Norris
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		5		12		6
Total assets of above accounts (millions)	$	941.34	$	921	$	3,793
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		1		1
Total assets of above accounts (millions)	$	0	$	173	$	620

Peter Wilson
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		5		12		6
Total assets of above accounts (millions)	$	941.34	$	921	$	3,793
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		1		1
Total assets of above accounts (millions)	$	0	$	173	$	620
Michael Lee
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		5		12		6
Total assets of above accounts (millions)	$	941.34	$	921	$	3,793
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		1		1
Total assets of above accounts (millions)	$	0	$	173	$	620
Alex Perrin
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		5		12		6
Total assets of above accounts (millions)	$	941.34	$	921	$	3,793

performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		1		1
Total assets of above accounts (millions)	$	0	$	173	$	620
Christopher Wightman
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		5		12		6
Total assets of above accounts (millions)	$	941.34	$	921	$	3,793
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		1		1
Total assets of above accounts (millions)	$	0	$	173	$	620
Noah Wise
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		6		3		15
Total assets of above accounts (millions)	$	2,4932.37	$	1,622	$	881
performance based fee accounts:
I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		0		0		0
Total assets of above accounts (millions)	$	0	$	0	$	0

MATERIAL CONFLICTS OF INTEREST

The Portfolio Managers face inherent conflicts of interest in their day-to-day management of the Funds and other accounts because the Funds may have different investment objectives, strategies and risk profiles than the other accounts managed by the Portfolio Managers. For instance, to the extent that the Portfolio Managers manage accounts with different investment strategies than the Funds, they may from time to time be inclined to purchase securities, including initial public offerings, for one account but not for a Fund. Additionally, some of the accounts managed by the Portfolio Managers may have different fee structures, including performance fees, which are or have the potential to be higher or lower, in some cases significantly higher or lower, than the fees paid by the Funds. The differences in fee structures may provide an incentive to the Portfolio Managers to allocate more favorable trades to the higher-paying accounts.

To minimize the effects of these inherent conflicts of interest, the Sub-Advisers have adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, that they believe address the potential conflicts associated with managing portfolios for multiple clients and ensure that all clients are treated fairly and equitably. Additionally, some of the Sub-Advisers minimize inherent conflicts of interest by assigning the Portfolio Managers to accounts having similar objectives. Accordingly, security block purchases are allocated to all accounts with similar objectives in proportionate weightings. Furthermore, the Sub-Advisers have adopted a Code of Ethics under Rule 17j-1 of the 1940 Act and Rule 204A-1 under the Investment Advisers Act of 1940 (the “Advisers Act”) to address potential conflicts associated with managing the Funds and any personal accounts the Portfolio Managers may maintain.

First International Advisors

First International Advisors’ Portfolio Managers often provide investment management for separate accounts advised in the same or similar investment style as that provided to mutual funds. While management of multiple accounts could potentially lead to conflicts of interest over various issues such as trade allocation, fee disparities and research acquisition, First International Advisors has implemented policies and procedures for the express purpose of ensuring that clients are treated fairly and that potential conflicts of interest are minimized.

Wells Capital Management

Wells Capital Management’s Portfolio Managers often provide investment management for separate accounts advised in the same or similar investment style as that provided to mutual funds. While management of multiple accounts could potentially lead to conflicts of interest over various issues such as trade allocation, fee disparities and research acquisition, Wells Capital Management has implemented policies and procedures for the express purpose of ensuring that clients are treated fairly and that potential conflicts of interest are minimized.

COMPENSATION

The Portfolio Managers were compensated by their employing sub-adviser from the fees the Adviser paid the Sub-Adviser using the following compensation structure:

First International Advisors Compensation. The compensation structure for First International Advisors’ Portfolio Managers includes a competitive fixed base salary plus variable incentives (First International Advisors utilizes investment management compensation surveys as confirmation). Incentive bonuses are typically tied to pretax relative investment performance of all accounts under his or her management within acceptable risk parameters. Relative investment performance is generally evaluated for 1, 3, and 5 year performance results, with a predominant weighting on the 3-and 5- year time periods, versus the relevant benchmarks and/or peer groups consistent with the investment style. This evaluation takes into account relative performance of the accounts to each account’s individual benchmark and/or the

relative composite performance of all accounts to one or more relevant benchmarks consistent with the overall investment style. In the case of each Fund, the benchmark(s) against which the performance of the Fund’s portfolio may be compared for these purposes generally are indicated in the Performance” sections of the Prospectuses.

Wells Capital Management Compensation. The compensation structure for Wells Capital Management’s Portfolio Managers includes a competitive fixed base salary plus variable incentives (Wells Capital Management utilizes investment management compensation surveys as confirmation). Incentive bonuses are typically tied to pretax relative investment performance of all accounts under his or her management within acceptable risk parameters. Relative investment performance is generally evaluated for 1, 3, and 5 year performance results, with a predominant weighting on the 3- and 5- year time periods, versus the relevant benchmarks and/or peer groups consistent with the investment style. This evaluation takes into account relative performance of the accounts to each account’s individual benchmark and/or the relative composite performance of all accounts to one or more relevant benchmarks consistent with the overall investment style. In the case of each Fund, the benchmark(s) against which the performance of the Fund’s portfolio may be compared for these purposes generally are indicated in the Performance” sections of the Prospectuses.

BENEFICIAL OWNERSHIP OF THE FUND

The following table shows for each Portfolio Manager the dollar value of the Fund beneficially owned by the Portfolio Manager as of October 31, 2017

Niklas Nordenfelt	none
Philip Susser	none
Christopher Kauffman	none
Tony Norris	none
Peter Wilson	none
Michael Lee	none
Alex Perrin	none
Christopher Wightman	none
Noah Wise	none

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

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
11/1/2016 to 11/30/2016		57,556		12.65		57,556		3,256,010
12/1/2016 to 12/31/2016		0		0		0		3,256,010
1/1/2017 to 1/31/2017		N/A		N/A		N/A		N/A
2/1/2017 to 2/28/2017		N/A		N/A		N/A		N/A
3/1/2017 to 3/31/2017		N/A		N/A		N/A		N/A

4/1/2017 to 4/30/17	N/A	N/A	N/A	N/A
5/1/2017 to 5/31/2017	6,165,826	14.17	6,165,826	0
6/1/2017 to 6/30/2017	N/A	N/A	N/A	N/A
7/1/2017 to 7/31/2017	N/A	N/A	N/A	N/A
8/1/2017 to 8/31/2017	N/A	N/A	N/A	N/A
9/1/2017 to 9/30/2017	N/A	N/A	N/A	N/A
10/1/2017 to 10/31/2017	N/A	N/A	N/A	N/A
Total	6,223,382	14.16	6,223,382	0

On December 17, 2015, the Fund announced an open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund was able to repurchase up to 10% of its outstanding shares within one year of December 17, 2015. The Buyback Program ended at the close of business on December 16, 2016    

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

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

ITEM 11. CONTROLS AND PROCEDURES

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

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

ITEM 12. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit COE.

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

(a)(3) Not applicable.

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

SIGNATURES

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

Wells Fargo Multi-Sector Income Fund
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	December 21, 2017

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

Wells Fargo Multi-Sector Income Fund
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	December 21, 2017
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date:	December 21, 2017

EX-99.(A)(1)

ASSET ALLOCATION TRUST

WELLS FARGO GLOBAL DIVIDEND OPPORTUNITY FUND

WELLS FARGO INCOME OPPORTUNITIES FUND

WELLS FARGO MULTI-SECTOR INCOME FUND

WELLS FARGO UTILITIES & HIGH INCOME FUND

WELLS FARGO FUNDS TRUST

WELLS FARGO MASTER TRUST

WELLS FARGO VARIABLE TRUST

CODE OF ETHICS

Policy on Personal Securities Transactions

Revised

May 24, 2016

TABLE OF CONTENTS

1.	OVERVIEW		1
	1.1	Code of Ethics	1
	1.2	Standards of Business Conduct	1
	1.3	Your Duties	1
	1.4	Our Duties and Responsibilities to You	2
2.	TRADING ON INSIDER INFORMATION		2
	2.1	What is Insider Trading?	2
	2.2	Using Non-Public Information about an Account or our Advisory Activities	3
3.	PERSONAL SECURITIES TRANSACTIONS		3
	3.1	Avoid Conflicts of Interest	3
	3.2	Reporting Person	4
	3.3	Reporting Personal Securities Transactions	4
	3.4	New Accounts	5
	3.5	Reports of the CCO	6
	3.6	Your Reports are Kept Confidential	6
	3.7	Exceptions to Reporting	6
	3.8	Summary of What You Need to Report	7
4.	TRADING REQUIREMENTS, RESTRICTIONS AND EMPLOYEE COMPENSATION ACCOUNTS		8
	4.1	Pre-Clearance Requirements for Reporting Persons	8
	4.2	How to Pre-Clear Personal Securities Transactions	9
	4.3	Trading Restrictions and Prohibitions	9
	4.4	Ban on Short-Term Trading Profits	12
	4.5	Employee Compensation Related Accounts	12
	4.6	Your Reports are Kept Confidential	14
5.	CODE VIOLATIONS		15
	5.1	Investigating Code Violations	15
	5.2	Penalties	15
	5.3	Your Obligation to Report Violations	15
	5.4	Exceptions to the Code	15
6.	ANNUAL WRITTEN REPORTS TO THE BOARDS OF TRUSTEES		15
7.	RECORD RETENTION		16
APPENDIX A DEFINITIONS			17
APPENDIX B ACKNOWLEDGEMENT AND CERTIFICATION			21
APPENDIX C QUARTERLY PERSONAL SECURITIES TRANSACTIONS REPORT			22
APPENDIX D INITIAL HOLDINGS REPORT			23
APPENDIX E ANNUAL HOLDINGS REPORT			24

Wells Fargo Funds

1.   OVERVIEW 1.1  Code of Ethics
	Asset Allocation Trust, Wells Fargo Income Opportunities Fund, Wells Fargo Multi- Sector Income Fund, Wells Fargo Global Dividend Opportunity Fund and Wells Fargo Utilities & High Income Fund, Wells Fargo Funds Trust, Wells Fargo Master Trust and Wells Fargo Variable Trust (including all “feeder funds” of Wells Fargo Master Trust that are advised or administered by Wells Fargo Funds Management, LLC (“Funds Management”), or, “feeder funds” of Asset Allocation Trust, advised by Grantham, Mayo, Van Otterloo & Co., LLC (“GMO”), each an investment adviser registered under the Investment Advisers Act of 1940 (“Advisers Act”), or an affiliate thereof) (each, including the series thereof, a “Wells Fargo Fund” and collectively, the “Wells Fargo Funds”), all registered investment companies under the Investment Company Act of 1940 (the “1940 Act”), adopt this Code of Ethics (the “Code”) pursuant to Rule 17j-1 under the 1940 Act. The Code outlines the policies and procedures to follow and the guidelines that govern Personal Securities Transactions.
See the Definitions located in Appendix A for definitions of capitalized and certain other terms
	The Wells Fargo Funds are committed to maintaining the highest ethical standards. The Wells Fargo Funds have a no tolerance policy for dishonesty, self-dealing and trading on material, Non-Public Information.
	Each Reporting Person, as defined below, is required to read the Code annually. Additionally, each Reporting Person must certify upon receiving the Code (or any new copy of a revised Code pursuant to Section 1.3 below) that he or she has received, read, understands, and is subject to the Code’s provisions and reporting requirements.

See Appendix B.

1.2  Standards of Business Conduct
	You must always observe the highest standards of business conduct and follow all applicable laws and regulations. You may never:
		●	Use any device, scheme or artifice to defraud the Wells Fargo Funds;
		●	Make any untrue statement of a material fact to the Wells Fargo Funds or mislead the Wells Fargo Funds by omitting to state a material fact;
		●	Engage in any act, practice or course of business that would defraud or deceive the Wells Fargo Funds;
		●	Engage in any manipulative practice with respect to the Wells Fargo Funds;
		●	Engage in any inappropriate trading practices, including price manipulation; or
		●	Engage in any transaction that may give the appearance of impropriety.
1.3  Your Duties
	You have a duty of loyalty to the shareholders of the Wells Fargo Funds. That means you always need to act in the best interests of the Wells Fargo Funds. You must never do anything that allows (or appears to allow) you to inappropriately benefit from your relationships with the Wells Fargo Funds.
	You cannot engage in activities such as self-dealing and must disclose all conflicts of interest between the interests of the Wells Fargo Funds and your personal interests to the Compliance Department.

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Wells Fargo Funds

	As a person subject to this Code, you must:
		●	Be ethical;
		●	Act professionally;
		●	Exercise independent judgment;
		●	Comply with all applicable Federal Securities Laws;
		●	Comply with all applicable laws (U.S. Foreign Corrupt Practices Act
		●	(FCPA), the UK Bribery Act 2010 (Bribery Act), and other foreign laws) prohibiting bribery of government officials or other third parties;1Adhere to all Wells Fargo Funds policies;
		●	Avoid conflicts of interest, and situations which create the perception of a conflict of interest. A conflict of interest exists when financial or other incentives motivates a person to place their or Wells Fargo’s interest ahead of our customer.
		●	Promptly report violations or suspected violations of the Code to the Compliance Department;
		●	Cooperate fully, honestly and in a timely manner with a Risk & Compliance Department investigation or inquiry.
1.4  Our Duties and Responsibilities to You
	To help you comply with this Code, the CCO and Compliance Department will:
		●	Notify you in writing of the Code reporting requirements.
		●	Make a copy of the Code available and require certification that you have read, understand, and will abide by the Code.
		●	Make available a revised copy of the Code if there are any material amendments to it and require you to certify receipt and understanding of the revised Code.
		●	Periodically compare all reported Personal Securities Transactions with the portfolio transactions report of the Wells Fargo Funds. Before we determine if you may have violated the Code on the basis of this comparison, we will give you an opportunity to provide an explanation.
		●	Review the Code at least once a year to assess its adequacy and effectiveness.
2.  TRADING ON INSIDER INFORMATION
The law requires there to be written policies and procedures with enforcement to prevent Reporting Persons from misusing material, non-public information. Funds Management does this by:
	●	Limiting access to files likely to contain non-public information,
	●	Restricting or monitoring trades, including trades in securities about you might have non-public information, and
	●	Providing continuing education programs about insider trading.
	2.1  What is Insider Trading?
WARNING! Insider trading is illegal. You could go to prison or be forced to pay a large fine for participating in insider trading. Wells Fargo could also be fined for your actions.	Insider trading is generally defined as occurring when a person has possession of material, non-public information about an issuer and engages in a Personal Securities Transaction involving securities issued by the issuer, or discloses the information to others who then trade in the issuer’s securities.

May 24, 2016 2 Code of Ethics

Wells Fargo Funds

		Information is considered material if there is a substantial likelihood that a reasonable investor would consider it important in deciding how to act. Information is considered non-public when it has not been made available to investors generally. Information becomes public once it is publicly disseminated. Limited disclosure does not make the information public (for example, if an insider makes information available to a select group of individuals, it is not public).
Examples of illegal and prohibited insider trading and related activity include, but are not limited to, the following:
		●	Tipping of material, non-public information is illegal and prohibited. Tipping occurs when non-public information about an issuer is given to someone else who then trades in securities of the issuer.
		●	Front running is illegal and prohibited. Front running is trading ahead of an Account in the same or equivalent security (such as options) in order to make a profit or to avoid a loss.
		●	Scalping is illegal and prohibited. Scalping is purchasing or selling a security (or an equivalent security) for a personal account prior to a recommend/buy or recommend/sell that security or equivalent for an Account.
2.2  Using Non-Public Information about an Account or our Advisory Activities
	You may not:
		●	Share with any other person (unless permitted or required by law, it’s necessary to carry out duties and appropriate confidentiality protections are in place, as necessary) any non-public information about an Account, including:
				¡	Any securities holdings or transactions of an Account;
				¡	Any securities recommendation made to an Account;
				¡	Any securities transaction (or transaction under consideration) by an Account, including information about actual or contemplated investment decisions;
				¡	Any changes to portfolio management teams of Reportable Funds;
				¡	any information about planned mergers or liquidations of Reportable Funds; and
				¡	Any Management Valuation Team proceedings and plans for future actions (either through attendance at, or receipt of the output from, such proceedings).
		●	Use any non-public information regarding an Account in any way that might compete with, or be contrary to, the interest of such Account.
		●	Use any non-public information regarding an Account in any way for personal gain.
		NOTE:  Registered Representatives of the Distributor may have other requirements and limitations set forth in the Written Supervisory Procedures.
3.  PERSONAL SECURITIES TRANSACTIONS
3.1  Avoid Conflicts of Interest
When engaging in Personal Securities Transactions, there might be conflicts between the interests of the Wells Fargo Funds and your personal interests. Any conflicts that arise in such Personal Securities Transactions must be resolved in a manner that does not inappropriately benefit you or adversely affect the Wells Fargo Funds or their shareholders. You shall always place the financial and business interests of the Wells Fargo Funds before your own personal financial and business interests.

May 24, 2016 3 Code of Ethics

Wells Fargo Funds

Examples of inappropriate resolutions of conflicts are:
		●	Taking an investment opportunity away from a Wells Fargo Fund to benefit a portfolio of which you have Beneficial Ownership;
		●	Using your position to take advantage of available investments;
		●	Front running a Wells Fargo Fund by trading in securities (or equivalent securities) ahead of a Wells Fargo Fund;
		●	Taking advantage of information or using Wells Fargo Fund portfolio assets to affect the market in a way that personally benefits you or a portfolio of which you have Beneficial Ownership;
		●	Any other behavior determined by the CCO to be or have the appearance of a conflict
3.2  Reporting Person
	The Code applies to you if you are a Reporting Person of the Wells Fargo Funds because you may, at some time, have access to or obtain investment information.
	Reporting Persons are:
		●	All Wells Fargo Fund officers;
		●	All Wells Fargo Fund trustees, either interested or disinterested;
		●	Each Wells Fargo Fund employee and any employee of any company in a control relationship to the Wells Fargo Funds who, in connection with his or her regular functions or duties, makes, participates, in or obtains information regarding, the purchase or sale of securities by a Wells Fargo Fund, or whose functions relate to the making of any recommendations with respect to such purchases or sales;
		●	All natural persons in a control relationship with a Wells Fargo Fund who obtain information concerning recommendations made to a Wells Fargo Fund with regard to the purchase or sale of a Security by a Wells Fargo Fund; or
		●	Anyone else designated in writing by the Chief Compliance Officer (“CCO”).
	Any member of an advisory board to a Wells Fargo Fund (“Advisory Board Member”) will also be treated as a Reporting Person solely for purposes of this Code. As a Reporting Person, unless you are exempt from reporting as an Independent Trustee (as described in Section 3.7 below), you are required to report your initial holdings when you become a Reporting Person, annual holdings each year, and quarterly transactions in any securities in which you or any Immediate Family Member has any direct or indirect beneficial ownership. (You are not required to report transactions for, and securities held in, any account over which neither you nor any member of your immediate family has any direct or indirect influence or control.)
3.3  Reporting Personal Securities Transactions
	Generally, all Reporting Persons must report all Personal Securities Accounts, along with the holdings and transactions of Reportable Securities in those accounts. Personal Securities Accounts include those accounts of Immediate Family Members and accounts in which Reporting Persons are a Beneficial Owner. There are three types of reports:
	(1) an initial holdings report that is filed upon becoming a Reporting Person, (2) a quarterly transaction report, and (3) an annual holdings report.

May 24, 2016 4 Code of Ethics

Wells Fargo Funds

	Each broker-dealer, bank, or fund company where you have a Personal Securities Account must receive a request for the Risk & Compliance Department to receive all account statements and confirmations from such accounts.1 The Code Team will make this request on behalf of the Reporting Person after the accounts are disclosed.
	1.	Initial Holdings Report. Within 10 days of becoming a Reporting Person:
		●	All Personal Securities Accounts, including broker name and account number information must be reported to the Code of Ethics team via the Transaction Monitoring System (“TMS”).
		●	Statements (electronic or paper) for all Personal Securities Accounts must be provided by Reporting Persons to the Code Team.
		●	All holdings of Reportable Securities in Personal Securities Accounts must be input into the Code of Ethics TMS into an Initial Holdings Report. The information in the report must be current as of a date no more than 45 days prior to the date of becoming a Reporting Person.
		●	This Initial Holdings Report must be provided to the Risk & Compliance Department by the business day immediately before the weekend or holiday if the 10th day falls on a weekend or holiday.
	2.	Quarterly Transactions Reports. Within 30 days of calendar quarter end:
		●	Reporting Persons must supply to the Code team a report, most commonly via the Code of Ethics Transaction Monitoring System, showing all Securities trades made in Reporting Persons’ Personal Securities Accounts during the quarter. This report and must be submitted even if there were not any Securities trades transacted during the quarter.
		●	Reporting Persons will certify as to the correctness and completeness of this report.
		●	This report and certification must be provided to the Code team by the business day immediately before the weekend or holiday if the 30th day falls on a weekend or holiday.
	3.	Annual Holdings Reports. Within 30 days of each year end:
		●	All holdings of Securities in all Personal Securities Accounts, must be reported to the Code Team via the Code of Ethics Transaction Monitoring System. The information in the report must be current as of a date no more than 45 days prior to when you give us the report.
		●	Reporting Persons will certify as to the correctness and completeness of this report.
		●	This report must be provided to the Code Team by the business day immediately before the weekend or holiday if the 30th day falls on a weekend or holiday.
3.4     New Accounts
	Reporting Persons must inform the Code Team via the TMS of any new Personal Securities Accounts established within 10 days of receiving the account number or prior to executing a preclearable transaction, whichever occurs first.

¹ All accounts that have the ability to hold Reportable Securities must be included even if the account does not have holdings of those securities at the report date.

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Wells Fargo Funds

3.5  Reports of the CCO
	Any personal Securities holdings and transaction reports required to be filed by a CCO must be submitted to an alternate designee who will fulfill the duties of the CCO with respect to those reports.
3.6  Your Reports are Kept Confidential
	Funds Management will use reasonable efforts to ensure that the information submitted to the Risk & Compliance Department as required by this Code are kept confidential. Information will be reviewed by members of the Risk & Compliance Department and possibly our senior executives or legal counsel. Data may be provided to Reportable Fund officers and trustees, and will be provided to government authorities upon request or others if required to do so by law or court order.
3.7  Exceptions to Reporting
	Independent Trustee Reporting Exceptions: If you are an Independent Trustee2, you are exempt from initial and annual holdings reports described in Section 2.3 above and may be exempt from transaction reports based on limited access to information about portfolio management activities. In lieu of the initial holdings reports, you must certify upon receiving the Code (or any new copy of a revised Code pursuant to Section 1.3 above) that you acknowledge that you are a Non-Reporting Person subject to the Code and are not required to submit an initial holdings report.
	You are not required to submit quarterly transaction reports, unless you knew at the time of the transaction, or in the ordinary course of fulfilling your official duties as trustee should have known,3 that, during the 15-day period immediately preceding or following the date of such transaction, the same security was purchased or sold by the Wells Fargo Funds (or any series thereof), or was being considered for purchase or sale by the Wells Fargo Funds (or any series thereof) or by an investment adviser or investment sub-adviser thereto.
	A copy of the initial certification form is included as Appendix B. If you are unable to meet the filing exemption, you will be required to report as indicated in section 2.3 above for the designated period(s).
	Reporting Persons of Funds Management: If you are a Reporting Person who is also a Reporting Person under the Funds Management Code of Ethics, you do not need to file duplicate reports specifically under this Code so long as you comply with the reporting requirements under the Funds Management Code of Ethics and the reports that you file under the Funds Management Code of Ethics include all holdings and transactions and other information otherwise required to be reported under this Code.

² Defined as a trustee of the Wells Fargo Funds who is not an “interested person” of the Wells Fargo Funds within the meaning of section 2(a)(19) of the 1940 Act. An Advisory Board Member who is not an “interested person” of the Wells Fargo Funds within the meaning of section 2(a)(19) of the 1940 Act will be treated as an Independent Trustee solely for purposes of this Code.

³ The “should have known” standard does not:

●    imply a duty of inquiry;

●    presume I should have deduced or extrapolated from the discussions or memoranda dealing with the Wells Fargo Fund’s investment strategies; or

●    impute knowledge from my awareness of a Wells Fargo Fund’s holdings, market considerations, or investment policies, objectives and restrictions.

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Wells Fargo Funds

3.8  Summary of What You Need to Report

The table below serves as a reference to use in determining what transactions Reporting Persons need to report on quarterly transactions reports. If you have questions about any types of Securities not shown below, please contact the Code Team by email at: COE@wellsfargo.com.

For my Quarterly Transaction Report, do I need to REPORT   transactions in.…?
Equity Securities, including Wells Fargo & Co. Stock	Yes
Corporate Debt Securities	Yes
Open End Reportable Mutual Funds	Yes
Municipal Bonds	Yes
Options on Reportable Securities	Yes
Money Market Mutual Funds (affiliated & non-affiliated)	No
Open End, Non-Reportable Mutual Funds	No
Exchange Traded Funds (ETFs) and iShares, both open-end and closed-end, and Unit Investment Trusts	Yes
Short Term Cash Equivalents	No
U.S. Government Bonds (direct obligations)	No
U.S. Treasuries/Agencies (direct obligations)	No
Commodities, Futures or Options on Futures	No
Securities Purchased through Automatic Investment Plans	No
Self directed transactions in Automatic Investment Plans that contain Reportable Securities	Yes
Receipt of unvested grants of Wells Fargo & Co. stock options, unvested restricted shares and other securities awarded in WFC employee compensation plans	No
Banker’s Acceptances, bank certificates of deposit, commercial paper & high quality short-term debt instruments, including repurchase agreements	No
529 Plans	No
Non-Wells Fargo & Co. 401(k) plans that do not or cannot hold Reportable Funds or Securities	No
Managed Accounts	No
Closed End Mutual Funds (non-affiliated)	Yes

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Wells Fargo Funds

4.  TRADING REQUIREMENTS, RESTRICTIONS AND EMPLOYEE COMPENSATION ACCOUNTS

All Reporting Persons, save Independent Trustees, must pre-clear transactions of certain Securities in Personal Security Accounts, (including those of Immediate Family Members and accounts for which you are a Beneficial Owner) as described below as well as comply with the trading restrictions that follow.

4.1        Pre-Clearance Requirements for Reporting Persons

Do I need to Preclear Transactions in….?	Reporting   Person	Valuation Committee Member
Equity Securities4, other than WFC stock	Yes	Yes
WFC stock purchases via Automatic Transactions in AIPs (Automated Investment Plans)	No	No
Options on WFC stock	No	No
Vested WFC options in employee compensation plans	No	No
Vested WFC restricted shares	No	No
Open End Non-Reportable Mutual Funds	No	No
Exchange Traded Funds (ETFs) and iShares, both open-end and closed-end, and Unit Investment Trusts, and options on ETFs	No	Yes
Receipt of unvested grants of Wells Fargo & Co. stock options, restricted shares and other securities awarded in employee compensation plans	No	No
Corporate Debt Securities	Yes	Yes
Money Market Mutual Funds (affiliated & non-affiliated)	No	No
Municipal Bonds	Yes	Yes
Options on Pre-clearable Securities	Yes	Yes
Self directed transactions in Automatic Investment Plans that contain Pre-clearable Securities5	Yes	Yes
Securities Purchased routinely in Automatic Investment Plans	No	No
Non-Wells Fargo & Co. 401(k) plans that cannot hold Reportable Funds or Securities	No	No
Short Term Cash Equivalents	No	No
U.S. Government Bonds (direct obligations)	No	No
U.S. Treasuries/Agencies (direct obligations)	No	No
Banker’s Acceptances, bank certificates of deposit, commercial paper & high quality short-term debt instruments, including repurchase agreements	No	No
529 Plans	No	No
Securities held in Managed Accounts	No	No
Closed End Mutual Funds (non-affiliated)	Yes	Yes
Tender Offers	Yes	Yes

⁴ It is not necessary to pre-clear transactions in WFC stock. See restrictions on WFC related issues in Section 4.2.3.

⁵ See additional information regarding AIPs in Section 4.4.

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Wells Fargo Funds

4.2  How to Pre-Clear Personal Securities Transactions
Reporting Persons must follow the steps below to pre-clear trades:
	1.	Request Authorization. Authorization for a transaction that requires pre-clearance must be entered using the Code of Ethics Transaction Monitoring System (“TMS”). Email requests to coe@wellsfargo.com will only be accepted for those reporting persons who are on formal leave of absence or on PTO. Reporting Persons may only request pre-clearance for market orders or same day limit orders. Verbal pre-clearance requests are not permitted.
Remember! Don’t place an order with your broker until you receive written approval to make the trade.	2.	Have The Request Reviewed and Approved. After receiving the electronic request, the TMS will notify the Reporting person if the trade has been approved or denied.
	3.	Trading in Foreign Markets. Request for pre-clearance in foreign markets that have already closed for the day may be given approval to trade for the following day because of time considerations. Approval will only be good for that following business day in that local foreign market.
	4.	Approval of Transactions
			●	The Request May be Refused. The Code Administrator or Manager may refuse to authorize your Personal Securities Transaction and need not give you an explanation for the refusal. Reasons for refusing your Personal Securities Transactions may be confidential.
			●	Authorizations Expire. Any transaction approved by the TMS or the Code Team is effective until the close of business of the same trading day for which the authorization is granted (unless the approval is revoked earlier). If the order for the transaction is not executed within that period, you must obtain a new advance authorization before placing your trade.
4.3  Trading Restrictions and Prohibitions
All Reporting Persons must comply with the following trading restrictions and prohibitions:
	●	60-Day Holding Period for Reportable Fund Shares (open-end and closed-end)
		Reporting Persons are required to hold shares purchased of most of the Reportable Funds for 60 days. This restriction applies without regard to tax lot considerations. Reporting Persons are required to hold the shares from the date of the most recent purchase for 60 days. If it is necessary to sell Reportable Fund shares before the 60-day holding period has passed, Reporting Persons must obtain advance written approval from the CCO or a Code of Ethics Compliance Officer. The 60-day holding period does not apply to transactions pursuant to Automatic Investment Plans. The 60 day Holding Period does not apply to the Adjustable Rate Government Fund, Conservative Income Fund, Ultra Short-Term Income Fund, Ultra Short-Term Municipal Income Fund and the money market funds. This restriction does apply to an Independent Trustee’s trades of Wells Fargo Fund shares.
	●	Reporting Persons’ trades are subject to open order restriction
		You cannot purchase or sell securities on any day during which an Account has a pending “buy” or “sell” order in for the same security (or equivalent security) of which the Risk & Compliance Department is aware until that order is withdrawn.

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Wells Fargo Funds

●	Reporting Persons’ trades are subject to a 15-day blackout restriction
	There is a “15-day blackout” on purchases or sales of securities bought or sold by an Account. This means that you may not buy or sell a security (or equivalent security) during the 7-day periods immediately preceding and immediately following the date the Account trades in the security (“blackout security”). During the blackout period, activity will be monitored by the Code Team or the Code Administrator and any Personal Securities Transactions during a blackout window will be evaluated and investigated based on each situation. Penalties may range from no action to potential disgorgement of profits or payment of avoided losses (see Section 6 for Code violations and penalties). During a blackout period, purchases of a blackout security may be subject to mandatory divestment. Similarly, during a blackout period, sales of a blackout security may be subject to mandatory repurchase.
	In the case of a purchase and subsequent mandatory divestment at a higher price, any profits derived upon divestment may be subject to disgorgement; disgorged profits will be donated to the Reporting Person’s charity of choice. In the case of a sale and subsequent mandatory repurchase at a lower price, the Reporting Person may be required to make up any avoided losses, as measured by the difference between the repurchase price and the price at which the security was sold; such avoided losses will be donated to the Reporting Person’s charity of choice.
	For example, if an Account trades in a blackout security on July 7, July 15 (the 8th day following the trade date) would be the 1st day Reporting Persons may engage in a Personal Securities Transaction involving that security, and any purchases and sales in the blackout security made on or after June 30 through July 14 could be subject to divestment or repurchase. Purchases and sales in the security made on or before June 29 (the 8th day before the trade date) would not be within the blackout period.
●	De minimis exception
	There is a De minimis exception to the restrictions described in 4.3.2, and 4.3.3 above (Open Order and Blackout). Reporting Persons may purchase and sell Large Capitalization Securities of up to $25,000, unless this conflicts with the 60-day short-term profit restriction described in section 4.4. The De minimis exception does not apply to options.
●	IPOs
	Reporting Persons are prohibited from purchasing shares in an Initial Public Offering. Reporting Persons must get written approval from the Code Administrator before selling shares that were acquired in an IPO prior to starting work with Wells Fargo. Reporting Persons may, subject to pre-clearance requirements, purchase shares in a Private Placement as long as the position will be less than a 10% interest in the issuer.
●	WFC Derivatives
	You may not invest or engage in derivative or hedging transactions involving securities issued by Wells Fargo & Co, including but not limited to options contracts (other than employee stock options), puts, calls, short sales, futures contracts, or other similar transactions regardless of whether you have material inside information.”
●	Wells Fargo Fund Closed End Funds
	You may not participate in a tender offer made by a closed-end Wells Fargo Fund under the terms of which the number of shares to be purchased is limited to less than all of the outstanding shares of such closed-end Wells Fargo Fund.

May 24, 2016 10 Code of Ethics

Wells Fargo Funds

●	No Reporting Person may purchase or sell shares of any closed-end Wells Fargo Fund within 60 days of the later of
			•	(i) the initial closing of the issuance of shares of such fund or
			•	(ii) the final closing of the issuance of shares in connection with an overallotment option.
●	Reporting Persons may purchase or sell shares of closed-end Wells Fargo Funds only during the 10-day period following the release of portfolio holdings information to the public for such fund, which typically occurs on or about the 15th day following the end of each calendar quarter. Certain Reporting Persons, who shall be notified by the Legal Department, are required to make filings with the Securities and Exchange Commission in connection with purchases and sales of shares of closed-end Wells Fargo Funds.
●	Investment Clubs
	Reporting Persons may not participate in the activities of an Investment Club without the prior approval from the Code Administrator. If applicable, trades for an Investment Club would need to be pre-cleared.
●	Personal Transactions
	Reporting Persons are prohibited from executing or processing through a Covered Company’s direct access software (TA2000 or any other similar software):
		●	Reporting Persons’ own personal transactions,
		●	Transactions for Immediate Family Members, or
		●	Transactions for accounts of other persons for which the Reporting Person or his immediate Family Member have been given investment discretion.
	This provision does not exclude you from trading directly with a broker/dealer or using a broker/dealer’s software. The foregoing also does not prohibit you from executing or processing transactions in Wells Fargo & Co. securities granted to you as compensation through an online program designated by Wells Fargo & Co. for such purpose.
●	Intention to Buy or Sell for Accounts
	Reporting Persons are prohibited from buying or selling securities when they intend, or know of another’s intention, to purchase or sell that security (or an equivalent security) for an Account. This prohibition applies whether the Personal Securities Transaction is in the same direction (e.g., two purchases or two sales) or the opposite direction (e.g., a purchase and sale) as the transaction for the Account.
●	Reporting Persons must not attempt to manipulate the market
	Reporting Persons must not execute any transactions intended to raise, lower, or maintain the price of any security or to create a false appearance of active trading.
●	Excessive Trading
	Excessive Trading for Personal Securities Accounts is strongly discouraged and Personal Securities Accounts will be monitored for Excessive Trading activity and reported to management. Additional restrictions may be imposed by the Compliance Department on a Reporting Person if Excessive Trading is noted for a Personal Securities Account.

May 24, 2016 11 Code of Ethics

Wells Fargo Funds

4.4  Ban on Short-Term Trading Profits

There is a ban on short-term trading profits. Reporting Persons are not permitted to buy and sell, or sell and buy, the same Pre-clearable Security (or equivalent security) within 60 calendar days and make a profit; this will be considered short-term trading.
		●	This prohibition applies without regard to tax lot.
		●	Short sales are subject to the 60 day profit ban.
If a Reporting Person makes a profit on an involuntary call of an option, those profits are excluded from this ban; however, buying and selling options within 60 calendar days resulting in profits is prohibited. Settlement/expiration date on the opening option transaction must be at least 60 days out.
Sales or purchases made at the original purchase or sale price or at a loss are not prohibited during the 60 calendar day profit holding period.
You may be required to disgorge any profits you make from any sale before the 60-day period expires. In counting the 60 calendar days, multiple transactions in the same security (or Equivalent Security) will be counted in such a manner as to produce the shortest time period between transactions.
Although certain transactions may be deemed de minimis (i.e., the exceptions noted in Section 4.3), they are still subject to the ban on short-term trading profits and are required to be input into the Code of Ethics Transactions Monitoring System.
The ban on short-term trading profits does not apply to transactions that involve:
		●	Securities not requiring pre-clearance (i.e., ETFs)
		●	Same-day sales of securities acquired through the exercise of employee stock options or other Wells Fargo & Co. securities granted to you as compensation or through the delivery (constructive or otherwise) of previously owned employer stock to pay the exercise price and tax withholding;
		●	Commodities, futures (including currency futures), options on futures and options on currencies; or
		●	Automated purchases or sales that were done as part of an Automatic Investment Plan (“AIP”). However, any self-directed purchases or sales outside the pre-set schedule or allocation of the AIP, or other changes to the pre-set schedule or allocation of the AIP, within a 60-day period, are subject to the 60-day ban on short term profit.
4.5  Employee Compensation Related Accounts
	1.	401(k) Plans
			Initial Holding Report:
			●	Reporting Persons who have an established Wells Fargo 401(k) plan with a non-zero balance are required to report their 401(k) balances in Reportable Funds as part of the Initial Holdings Reporting process. In addition, Reporting Persons are required to furnish to the Code Team, in writing, the investment allocation percentages for Reportable Funds in their Wells Fargo 401(K).
			●	401(k) Plans that are external to Wells Fargo are required to be reported if, regardless of the balance,, the plan is capable of holding Reportable Funds or Reportable Securities.
			Quarterly Transaction Report:
			●	Reporting Persons are required to report self-directed transactions in Reportable Funds in Wells Fargo 401(k) plans that occurred outside of the previously reported investment allocations. This reporting may be made on behalf of the Reporting Person by the 401(k) plan administration area to Risk & Compliance.

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Wells Fargo Funds

		●	Reporting Persons are required to report transactions in Reportable Funds or Securities in 401(k) plans held outside of Wells Fargo.
		●	Reporting Persons are not required to report bi-weekly payroll contributions, periodic company matches, or profit sharing contributions.
		Annual Holdings Report:
		●	Reporting Persons are required to update their holdings in Wells Fargo 401(k) plans in their Annual Holdings Report. This update may be made on behalf of the Reporting Person by the 401(k) plan administration area to Risk & Compliance.
		●	If an external 401(k) account holds Reportable Funds or Securities, Reporting Persons are required to update these holdings in their Annual Holdings Report.
		Pre-Clearance:
		●	Only Management Valuation Committee members are required to pre-clear transactions in Reportable Funds in a 401(k) plan.
2.	Wells Fargo Employee Stock Options & Restricted Shares
		Initial Holdings Report:
		●	The Wells Fargo Advisors brokerage account associated with Reporting Persons’ Long Term Incentive Compensation Plan (“LTICP”) is a Reportable Security Account and must be reported in the Initial Holding Report.
		●	Reporting Persons are not required to report the grant or vesting of WFC employee stock options.
		●	Reporting Persons are required to report vested, delivered restricted shares held in any Reportable Security Account, including the Shareowner Services Account and/or the Wells Fargo Advisors account associated with their LTICP.
		Quarterly Transaction Report:
		●	All Reporting Person directed transactions in LTICP holdings are reportable on the Quarterly Transaction Report, i.e., exercising of WFC options and disposition of WFC Restricted shares.
		●	The exercise of employee stock options is a reportable transaction.
		●	Reporting Persons are encouraged to report the vesting and delivery of restricted shares for any Reportable Security Account, including the Wells Fargo Advisors account associated with their LTICP.
		●	Reporting Persons are not required to report the grant or vesting of WFC employee stock options.
		Annual Holdings Report:
		●	Reporting Persons are required to report vested holdings of restricted shares in Reportable Security Accounts, such as the Shareowner Services account and/or the Wells Fargo Advisors brokerage account associated with a LTICP.
		●	Reporting Persons are not required to report holdings of employee stock options in LTICP.
		Pre-Clearance:
		●	Preclearance is not required prior to the sale of LTICP restricted shares.
		●	The exercise of stock options from LTICP is not pre-clearable in the Code of Ethics Transaction Monitoring System. However, Reporting Persons are requested to inform the Code Team via an email to coe@wellsfargo.com of the transaction details, as exercising of the options will flag in the Code of Ethics Transaction Monitoring System.

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Wells Fargo Funds

	3.	Wells Fargo Employee Stock Purchase Plan (ESPP)
			Initial Holdings Report:
			●	This is a Reportable Security Account and must be included in a Reporting Person’s Initial Holding Report.
			Quarterly Transaction Report:
			●	Sells of shares from Reporting Persons’ ESPP are reportable on the Quarterly Transaction Report.
			Annual Holdings Report:
			●	Reporting Persons are required to update holdings of ESPP accounts in the Annual Holdings Report.
			Pre-Clearance:
			●	Transactions in the ESPP do not require pre-clearance.
	4.	Wells Fargo Health Services Account
			Initial Holdings Report:
			●	Wells Fargo HSAs are reportable when the balance reaches threshold that allows the Reporting Person to invest in Reportable Funds.
			Quarterly Transaction Report:
			●	Sells of shares of Reportable Funds are reportable on the Quarterly Transaction Report.
			Annual Holdings Report:
			●	Reporting Persons are required to update holdings of balances invested in Reportable Funds on the Annual Holdings Report.
			Pre-Clearance:
			●	Transactions in HSA accounts do not require pre-clearance.
	5.	Wells Fargo Deferred Compensation Plans
			●	Wells Fargo Deferred Compensation Plans are not Reportable Accounts.
4.6     Your Reports are Kept Confidential
		We will use reasonable efforts to ensure that the reports you submit to us under this Code are kept confidential. The reports will be reviewed by members of the Compliance Department and possibly our senior executives or legal counsel. Reports may be provided to Wells Fargo Fund officers and trustees, and will be provided to government authorities upon request or others if required to do so by law or court order.

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Wells Fargo Funds

5.     CODE VIOLATIONS
5.1     Investigating Code Violations
	The CCO is responsible for enforcing the Code. The CCO or his or her designee is responsible for investigating any suspected violation of the Code and if the CCO selects a designee, the designee will report the results of each investigation to the CCO. This includes not only instances of violations against the letter of the Code, but also any instances that may give the appearance of impropriety. The CCO is responsible for reviewing the results of any investigation of any reported or suspected violation of the Code in coordination with the designee. Any confirmed violation of the Code will be reported to the Wells Fargo Funds’ Boards of Trustees.
5.2     Penalties
	If you violate the provisions of the Code, the Wells Fargo Funds have the right to impose on you one or more of the following penalties as they may deem appropriate:
		●	Censure you;
		●	Suspend your authority to act on behalf of the Wells Fargo Funds; and/or
		●	Recommend specific sanctions, such as disgorgement of profits, imposition of fines, and/or termination of your employment.
5.3     Your Obligation to Report Violations
	You must report any violations or suspected violations of the Code to the CCO or to a member of the Compliance Department. Your reports will be treated confidentially and will be investigated promptly and appropriately. Violations include:
		●	Non-compliance with applicable laws, rules, and regulations;
		●	Fraud or illegal acts involving any aspect of our business;
		●	Material misstatements in reports;
		●	Any activity that is specifically prohibited by the Code; and
		●	Deviations from required controls and procedures that safeguard clients and us.
5.4    Exceptions to the Code
	The CCO is responsible for enforcing the Code. The CCO (or his or her designee for any exceptions sought by the CCO) may grant certain exceptions to the Code in compliance with applicable law, provided any requests and any approvals granted must be submitted and obtained, respectively, in advance and in writing. The CCO or designee may refuse to authorize any request for exception under the Code and is not required to furnish any explanation for the refusal.
6.     ANNUAL WRITTEN REPORTS TO THE BOARDS OF TRUSTEES
Issues and Violations under the Code. At least annually, the CCO provides written reports to the Wells Fargo Funds’ Boards of Trustees. The reports must describe any issues or material violations that arose during the previous year under the Code and any resulting sanctions. Any exceptions granted under the Code must also be described. The CCO may report to the Wells Fargo Funds’ Boards more frequently as the CCO deems necessary or appropriate, and shall do so as requested by the Boards.

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Wells Fargo Funds

Our Certification to the Boards. Each report must be accompanied by a certification to the Boards that Wells Fargo Funds has adopted procedures reasonably necessary to prevent Reporting Persons from violating the Code.
Annual Review. The CCO reviews the Code at least once a year to assess the adequacy of the Code and how effectively it works. As part of the annual report to the Wells Fargo Funds’ Boards, the CCO identifies any recommended changes in existing restrictions or procedures based on its experience under the Code, evolving industry practices, or developments in applicable laws or regulations.
The Funds’ Boards must approve all material amendments within six months following adoption.
7.     RECORD RETENTION
We will keep the following records in an easily accessible place at our principal place of business, and will make the records available to the SEC or any representative from the SEC at any time and from time to time for reasonable periodic, special or other examination:
	1.	Code of Ethics. A copy of this Code and all previous versions of the Code that have been in effect for the last 5 years.
	2.	Violations. A record of all Code violations and actions taken as a result of those violations for at least five years after the end of the fiscal year in which the violation occurs.
	3.	Required Reports. All reports required by the Code including records of the procedures followed in connection with the pre-clearance requests of investment personnel and any information provided in lieu of the reports required under Section 2.2 above. All information relied on by the CCO or designee in authorizing any securities transactions, along with any reasons supporting such decision. All reports used in post-trade monitoring and review will also be maintained. Each required report will be maintained for at least five years after the end of the fiscal year in which the report is made or the information provided.
	4	REPORTING Persons List. A list of all persons who are, or have been, required to make reports pursuant to the Code, or who were responsible for reviewing these reports, within the past five years.
	5.	Board Reports. Copies of any reports given to the Wells Fargo Funds’ Boards for at least five years after the end of the fiscal year in which it was made.

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APPENDIX A

DEFINITIONS

General Note:

The definitions and terms used in the Code are intended to mean the same as they do under the 1940 Act and the other Federal Securities Laws. If a definition hereunder conflicts with the definition in the 1940 Act or other Federal Securities Laws, or if a term used in the Code is not defined, you should follow the definitions and meanings in the 1940 Act or other Federal Securities Laws, as applicable.

Automatic Investment Plan	A program that allows a person to purchase or sell securities, automatically and on a regular basis in accordance with a pre-determined schedule and allocation, without any further action by the person. An Automatic Investment Plan includes a SIP (systematic investment plan), SWP (systematic withdrawal plan), SPP (stock purchase plan), DRIP (dividend reinvestment plan), or employer-sponsored plan.
Beneficial Owner	You are the “beneficial owner” of any securities in which you have a direct or indirect Financial or Pecuniary Interest, whether or not you have the power to buy and sell, or to vote, the securities.
	In addition, you are the “beneficial owner” of securities in which an Immediate Family Member has a direct or indirect Financial or Pecuniary Interest, whether or not you or the Immediate Family Member has the power to buy and sell, or to vote, the securities. For example, you have Beneficial Ownership of securities in trusts of which Immediate Family Members are beneficiaries.
	You are also the “beneficial owner” of securities in any account, including but not limited to those of relatives, friends and entities in which you have a non-controlling interest, over which you exercise investment discretion. Such accounts do not include accounts you manage on behalf of Wells Fargo Funds Management, LLC or any other affiliate of Wells Fargo & Company, or on behalf of Grantham, Mayo, Van Otterloo & Co., LLC.
Control	The power to exercise a controlling influence over the management or policies of a company, unless the power is solely the result of an official position with such company. Owning 25% or more of a company’s outstanding voting securities is presumed to give you control over the company. (See Section 2(a)(9) of the 1940 Act for a complete definition.)
Federal Securities Laws	The Securities Act of 1933 (15 U.S.C. 77a-aa), the Securities Exchange Act of 1934 (15 U.S.C. 78a—mm), the Sarbanes-Oxley Act of 2002 (Pub. L. 107-204, 116 Stat. 745 (2002)), the Investment Company Act of 1940 (15 U.S.C. 80a), the Investment Advisers Act of 1940 (15 U.S.C. 80b), Title V of the Gramm-Leach-Biley Act (Pub. L. No. 100-102, 113 Stat. 1338 (1999)), any rules adopted by the SEC under any of these statutes, the Bank Secrecy Act (31 U.S.C. 5311- 5314; 5316-5332) as it applies to funds and investment advisers, and any rules adopted thereunder by the SEC or the Department of the Treasury.

Appendix A 17 Definitions

Wells Fargo Funds

Financial or Pecuniary Interest	The opportunity for you or your Immediate Family Member, directly or indirectly, to profit or share in any profit derived from a transaction in the subject securities whether through any contract, arrangement, understanding, relationship or otherwise. This standard looks beyond the record owner of securities to reach the substance of a particular arrangement. You not only have a Financial or Pecuniary Interest in securities held by you for your own benefit, but also securities held (regardless of whether or how they are registered) by others for your benefit, such as securities held for you by custodians, brokers, relatives, executors, administrators, or trustees. The term also includes any security owned by an entity directly or indirectly controlled by you, which may include corporations, partnerships, limited liability companies, trusts and other types of legal entities. You or your Immediate Family Member may have a Financial or Pecuniary Interest in:
	●	Your accounts or the accounts of Immediate Family Members;
	●	A partnership or limited liability company, if you or an Immediate Family Member is a general partner or a managing member;
	●	A corporation or similar business entity, if you or an Immediate Family Member has or shares investment control; or
	●	A trust, if you or an Immediate Family Member is a beneficiary.
High quality short-term
debt instrument	Any instrument that has a maturity at issuance of less than 366 days and that is rated in one of the two highest rating categories by a nationally recognized statistical rating organization such as Moody’s Investors Service.
Immediate Family Member	Any of the following persons, including any such relations through adoption, who reside in the same household with you:

●	spouse	●	grandparent	●	mother-in-law
●	domestic partner	●	grandchild	●	father-in-law
●	parent	●	brother	●	daughter-in-law
●	stepparent	●	sister	●	son-in-law
●	child			●	sister-in-law
●	stepchild			●	brother-in-law

	Immediate Family Member also includes any other relationship that the CCO determines could lead to possible conflicts of interest, diversions of corporate opportunity, or appearances of impropriety.
Independent Trustee	A trustee of a Wells Fargo Fund who is not an “interested person” of the Wells Fargo Fund within the meaning of Section 2(a)(19) of the 1940 Act. An Advisory Board Member who is not an “interested person” of the Wells Fargo Funds within the meaning of section 2(a)(19) of the 1940 Act will be treated as an Independent Trustee solely for purposes of this Code.

Appendix A 18 Definitions

Wells Fargo Funds

Investment Persons	Any of the following individuals:
	●	any employee of Wells Fargo Funds (or of any company in a control relationship to the Fund) who, in connection with his/her regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of securities by a Wells Fargo Fund;
	●	any natural person who controls a Wells Fargo Fund and who obtains information concerning recommendations made to a Wells Fargo Fund regarding the purchase or sale of securities by the Wells Fargo Fund; and
	●	any Reporting Person otherwise designated by the Code of Ethics Compliance Officer in writing that such person is an Investment Person.
Interested Trustee	A trustee of a Wells Fargo Fund who is an “interested person” of the Fund within the meaning of Section 2(a)(19) of the 1940 Act.
IPO	An initial public offering, or the first sale of a company’s securities to public investors. Specifically it is an offering of securities registered under the Securities Act of 1933, the issuer of which, immediately before registration, was not subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
Non-Public Information	Any information that is not generally available to the general public in widely disseminated media reports, SEC filings, public reports, prospectuses, or similar publications or sources.
Personal Securities Account	Any holding of Securities of which you have Beneficial Ownership, other than a holding of Securities previously approved by the Code of Ethics Compliance Officer over which you have no direct influence or Control. A Personal Securities Account is not limited to securities accounts maintained at brokerage firms, but also includes holdings of Securities owned directly by you or an Immediate Family Member or held through a retirement plan of Wachovia, Wells Fargo & Co. or any other employer.
Personal Securities Transaction	A purchase or sale of a Security, of which you have or acquire Beneficial Ownership.
Private Placement	An offering that is exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(2) or Section 4(6) thereof or Rule 504, 505 or 506 thereunder.
Purchase or Sale of a Security	Includes, among other things, gifting or the writing of an option to purchase or sell a security.

Appendix A 19 Definitions

Wells Fargo Funds

Security/Securities As defined under Section 2(a)(36) of the 1940 Act or Section 202(a)(18) of the Advisers Act, except that it does not include direct obligations of the U.S. Government; bankers’ acceptances; bank certificates of deposit; commercial paper; high quality short-term debt instruments, including repurchase agreements; shares issued by affiliated or unaffiliated money market mutual funds; or shares issued by open-end registered investment companies other than the Wells Fargo Funds.

Appendix A 20 Definitions

Wells Fargo Funds

APPENDIX B

ACKNOWLEDGEMENT AND CERTIFICATION

I certify that I have received, read, and understand that I am subject to the Code of Ethics Policy on Personal Securities Transactions dated                   , 20     for Wells Fargo Funds.

In addition to certifying that I will provide complete and accurate reporting as required by the Code and have complied with all requirements of the Code, I certify that I will not:

● Execute any prohibited purchases and/or sales, directly or indirectly, that are outside those permissible by the Code

● Employ any device, scheme or artifice to defraud any Wells Fargo Fund

● Engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon any Wells Fargo Fund

● Make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statements, in light of the circumstances under which they are made, not misleading

● Engage in any manipulative practice with respect to any Wells Fargo Fund

● Disclose any proprietary or non-public information in an inappropriate manner

In conjunction with this Code, please select ONE of the below:

☐          I acknowledge that, as an Independent Trustee, I am a Non-Reporting Person subject to the Code of Ethics Policy on Personal Securities Transactions for Wells Fargo Funds. As such, I further acknowledge that I am not required to submit an initial holdings report.

☐           I acknowledge that, as an Interested Trustee, officer or employee of Wells Fargo Funds, I am a Reporting Person subject to the Code of Ethics Policy on Personal Securities Transactions for Wells Fargo Funds. As such, I further acknowledge that I am required to submit an initial holdings report.

☐           I understand that unless I am exempt I violate this Code if I fail to submit a record of my Personal Securities Transactions within thirty calendar days after the end of each quarter.

Signature	Date
Name (Print)

PLEASE SUBMIT FORM TO THE COMPLIANCE DEPARTMENT (FAX 704-383-2259)

Appendix B 21 Acknowledgement and Certification

Wells Fargo Funds

APPENDIX C

QUARTERLY PERSONAL SECURITIES TRANSACTIONS REPORT

Name of Reporting
Person:
Calendar Quarter	Signature
Ended:
Date Report Due:	Date Report Submitted

I certify that this report is complete and accurate and that I have included all accounts required to be reported under the Code of Ethics.

Your Personal Securities Transactions	NOTE: You do not need to supply duplicate information from the account statements we already receive.*
☐    I had no securities transactions to report for the last quarter; OR
☐    All of my securities transactions are provided on duplicate account statements; OR

Please complete the table below if you had securities transactions during the last quarter that are not provided on duplicate statements.

Date of Transaction    Name of Issuer and/or Title of Security No. of Shares (if applicable)  Principal Amount, Maturity Date and Interest Rate  (if applicable) Name on Account, Type of Account and  Account Number Type of
Transaction
(purchase or  sale) Price   Name of Broker-Dealer    or Bank Effecting Transaction Ticker or Cusip

* Keep in mind, we do not receive account statements for your 401(k) plans so if you made any trades outside of your pre-set allocations, those must be reported here.

Your Securities Accounts

☐    I do not hold any securities accounts; OR

☐    I did not open any securities accounts during the quarter; OR

Please complete the table below if you opened a securities account during the last quarter.**

  Name of Broker-Dealer or Bank,   Wells Fargo Fund or Affiliated Mutual Fund   Date Account was Established   Name(s) on and Type of Account   Account Number  

**Please provide a copy of the most recent account statement for each account listed in the table above.

PLEASE SUBMIT FORM TO THE COMPLIANCE DEPARTMENT  (FAX 704-383-2259)

Appendix C 22 Quarterly Personal Securities Transactions Report

Wells Fargo Funds

APPENDIX D

INITIAL HOLDINGS REPORT

Name of Reporting Person:
Date Person Became Subject to the Code’s Reporting Requirements:	Signature
Information in Report Dated as of:
(Note: Information should be dated no more than 45 days before you became a Reporting Person.)
Date Report Due:	Date Report Submitted

I certify that this report is complete and accurate and that I have included all accounts required to be reported under the Code of Ethics.

Your Securities Holdings

☐    I have no securities holdings to report; OR

☐    All of my securities holdings are provided on duplicate account statements; OR

Please complete the table below to report your holdings.

Name of Issuer and Title of Security, including Type   No. of Shares (if applicable)           Principal Amount,       Maturity Date and Interest Rate (if applicable)   Exchange Ticker Symbol       or CUSIP Number   Name of Broker-Dealer or Bank, Fund  

Your Securities Accounts

☐    I do not hold any securities accounts; OR

Please complete the table below if you have securities accounts to report.*

  Name of Broker-Dealer or Bank, Fund     Name(s) on and Type of Account     Account Number  

*Please provide a copy of the most recent account statement for each account listed in the table above.

PLEASE SUBMIT FORM TO THE COMPLIANCE DEPARTMENT (FAX 704-383-2259)

Appendix D 23 Initial Holdings Report

Wells Fargo Funds

APPENDIX E

ANNUAL HOLDINGS REPORT

Name of Reporting Person:
Information in Report Dated as of:		SIGNATURE
(Note: Information should be dated no more than 45 days before report is submitted.)
Date Report Due:
Calendar Year Ended:	December 31,	Date Report Submitted

I certify that this report is complete and accurate and that I have included all accounts required to be reported under the Code of Ethics.

Your Securities Holdings

☐    I have no securities holdings to report; OR

☐    All of my securities holdings are provided on duplicate account statements; OR

Please complete the table below to report your holdings.

Name of Issuer and Title of Security, including Type    No. of Shares (if applicable)       Principal Amount, Maturity Date and Interest Rate (if applicable)   Exchange Ticker Symbol or CUSIP Number   Name of Broker-Dealer or Bank, Fund  

* Keep in mind, we do not receive account statements for your 401(k) plans so if you hold any Wells Fargo Funds in your plans, those must be reported here.

Your Securities Accounts

☐    I do not hold any securities accounts; OR

Please complete the table below if you have any securities accounts to report.*

  Name of Broker-Dealer or Bank, Wells Fargo Fund or Affiliated Mutual Fund     Date Account was   Established     Name(s) on and Type   of Account   Account number  

*Please provide a copy of the most recent account statement for each account listed in the table above.

PLEASE SUBMIT FORM TO THE COMPLIANCE DEPARTMENT (FAX 704-383-2259)

Appendix E 24 Annual Holdings Report

EX-99.CERT

Exhibit A

CERTIFICATION

I, Andrew Owen, certify that:

1. I have reviewed this report on Form N-CSR of Multi-Sector Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of the registrant’s Board of Trustees (or persons performing the equivalent functions):

a) all significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: December 21, 2017

/s/ Andrew Owen

Andrew Owen

President

Wells Fargo Multi-Sector Income Fund

Exhibit 99.CERT

CERTIFICATION

I, Jeremy DePalma, certify that:

1. I have reviewed this report on Form N-CSR of Wells Fargo Multi-Sector Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of the registrant’s Board of Trustees (or persons performing the equivalent functions):

a) all significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: December 21, 2017

/s/ Jeremy DePalma

Jeremy DePalma

Treasurer

Wells Fargo Multi-Sector Income Fund

Exhibit 99.CERT

EX-99.906CERT

Exhibit B

SECTION 906 CERTIFICATION

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Wells Fargo Multi-Sector Income Fund (the “Fund”), hereby certifies, to the best of his knowledge, that the Fund’s report on Form N-CSR for the year ended October 31, 2017 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund.

Date: December 21, 2017

By:
	/s/ Andrew Owen
	Andrew Owen
	President
	Wells Fargo Multi-Sector Income Fund

This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.

Exhibit 99.906CERT

SECTION 906 CERTIFICATION

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Wells Fargo Multi-Sector Income Fund (the “Fund”), hereby certifies, to the best of his knowledge, that the Fund’s report on Form N-CSR for the year ended October 31, 2017 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund.

Date: December 21, 2017

By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
	Wells Fargo Multi-Sector Income Fund

This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.

Exhibit 99.906CERT