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: 811-21331

Wells Fargo Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

Alexander Kymn

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, 2018

ITEM 1. REPORT TO STOCKHOLDERS

1

Annual Report

October 31, 2018

Wells Fargo Multi-Sector Income Fund (ERC)

Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-730-6001.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-730-6001. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.

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Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	6
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	32
Statement of operations	33
Statement of changes in net assets	34
Statement of cash flows	35
Financial highlights	36
Notes to financial statements	37
Report of independent registered public accounting firm	43
Other information	44
Automatic dividend reinvestment plan	51

The views expressed and any forward-looking statements are as of October 31, 2018, 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

The early months of the reporting period were characterized by strong performance for equity and fixed-income markets. The remainder of the reporting period generated economic, business, and investing data that were decidedly more mixed and volatile relative to the prior year.

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, 2018. The early months of the reporting period were characterized by strong performance for equity and fixed-income markets. The remainder of the reporting period generated economic, business, and investing data that were decidedly more mixed and volatile relative to the prior year.

For the period, U.S. stocks, as measured by the S&P 500 Index,¹ gained 7.35% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),² declined 8.24%. Based on the MSCI EM Index (Net),³ emerging market stocks lost 12.52%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index⁴ declined 2.05% and the Bloomberg Barclays Global Aggregate ex-USD Index⁵ fell 2.09%. The Bloomberg Barclays Municipal Bond Index⁶ dropped 0.51%, and the ICE BofAML U.S. High Yield Index⁷ was up 0.86%.

Optimism continued to shape markets as 2017 closed and 2018 opened.

Economic conditions in late 2017 were characterized by synchronized global growth, low inflation, healthy corporate earnings, growing consumer confidence, declining unemployment, and a weaker U.S. dollar that supported international growth. The U.S. Bureau of Economic Analysis reported that U.S. gross domestic product (GDP) growth on an annualized basis for the fourth quarter of 2017 was 2.9% and inflation remained below the U.S. Federal Reserve (Fed) target.

Economic momentum continued in Europe. The Bank of England (BOE) raised interest rates in November 2017 to 0.50%, the first increase in more than 10 years, indicating confidence in the economy’s growth potential. Meanwhile, the European Central Bank (ECB) and the Bank of Japan (BOJ) kept interest rates low to spur business activities and bought bonds in an effort to encourage equity investments. The People’s Bank of China (PBOC) also sought to stimulate economic growth. Many emerging market economies benefited from stronger currencies versus the U.S. dollar, while commodity price increases benefited countries that rely on natural resources for exports.

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 indices 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 MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. You cannot invest directly in an index.

⁴  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.

⁵ The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S. dollar-denominated debt market. You cannot invest directly in an index.

⁶ 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.

⁷ The ICE BofAML U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

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

Volatility reemerged during the early months of 2018.

In February 2018, investor concerns arose about inflation and trade, particularly between the U.S. and China. The Fed followed its 25-basis-point (bp; 100 bps equal 1.00%) federal funds rate increase in December 2017 with a further 25-bp increase in March 2018. The inflation rate in March reached the Fed’s 2% target for the first time in a year. The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

Overseas investment markets, hurt by a stronger U.S. dollar and mounting trade and diplomatic tensions, fell. The MSCI ACWI ex USA Index (Net) declined 1.81% for the quarter that ended March 31, 2018.

Global trade tensions prompted investor concerns.

Global trade tensions escalated during the second quarter of 2018. The U.S. government’s decision to impose tariffs on a wide range of products manufactured overseas drew retaliatory responses from foreign governments, which punished U.S. commodity producers and product manufacturers. Investors were left to wonder about next steps in what appeared to be an escalating divergence in global economic policies and growth prospects.

Inflation trended higher. The CPI-U⁸ added 0.1% in June after an increase of 0.2% in both April and May. On a year-over-year basis, the all-items index rose 2.9% for the 12 months that ended June 30, 2018. The index for all items less food and energy rose 2.3% for the same 12-month period.

U.S. stocks gained following positive economic data while international stocks and bonds declined.

During the summer months, the U.S. economy strengthened. Revised second-quarter GDP data released in August showed the U.S. economy growing at a 4.2% rate. The unemployment rate in the U.S. was 3.7% by the end of September, according to the U.S. Department of Labor. Wages showed more consistent growth, and consumer confidence remained strong. Several U.S. equity market indices reached records during August, with the S&P 500 Index gaining 7.20% for the three-month period that ended September 30, 2018. In contrast, the MSCI ACWI ex USA Index (Net) gained 0.71% and the MSCI EM Index (Net) declined 1.09% during the same three-month period.

In June, the Fed increased the target range for the federal funds rate to range from 1.75% to 2.00%, then again in September to range from 2.00% to 2.25%. Long-term interest rates in the U.S. remained at higher levels relative to the prior 10 years. Rates on 10-year and 30-year Treasury bonds—2.46% and 2.81%, respectively, on January 1, 2018—were 3.15% and 3.39%, respectively, on October 31, 2018. Investor concerns about an inverted yield curve waned, only to be replaced by concerns about the potentially negative influence of higher interest rates on economic activity.

October proved to be a difficult month for stock markets globally.

As interest rates and bond yields gained during October, stock markets struggled. For the month, the S&P 500 Index fell 6.84%, the MSCI ACWI ex USA Index (Net) dropped 8.13%, and the MSCI EM Index (Net) lost 8.71%. The Bureau of Economic Analysis released its first estimate of third-quarter GDP, which, at an annualized 3.5% rate, indicated that growth may be slowing compared with the second quarter. Readings on consumer sentiment and business spending were mixed.

The S&P 500 Index closed the first quarter with a negative return, the first negative quarterly return for the index since 2014.

⁸  The Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because close to 90% of the country’s population lives in highly populated areas. You cannot invest directly in an index.

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

Economic signals overseas also were mixed as the third quarter ended and the fourth quarter began. In early August, the BOE’s Monetary Policy Committee increased its key interest rate to 0.75%. The ECB and the BOJ maintained low interest rates and accommodative monetary policies. Amid rising trade uncertainty, the PBOC cut reserve requirement ratios and accelerated infrastructure spending and tax cuts for business enterprises and individuals. Nevertheless, a strengthening U.S. dollar and the trade tensions remained headwinds for investors overseas.

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

Notice to shareholders

On November 9, 2018, the Fund announced an extension of its open-market share repurchase program (the “Buyback Program”). Under the extended Buyback Program, the Fund may repurchase up to 10% of its outstanding shares during the period in open-market transactions beginning on January 1, 2019 and ending on December 31, 2019. 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.

The Fund’s managed distribution plan 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.

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.

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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

Wells Capital Management Incorporated

Wells Fargo Asset Management (International), LLC

Portfolio managers

Christopher Y. Kauffman, CFA^®

Michael Lee

Niklas Nordenfelt, CFA^®

Alex Perrin

Phillip Susser

Lauren van Biljon, CFA^®‡

Peter Wilson

Noah Wise, CFA^®

Average annual total returns (%) as of October 31, 2018¹

	1 year			5 year			10 year
Based on market value		(1.91	)		4.84			10.31
Based on net asset value (NAV)		1.28			4.82			10.10
Multi-Sector Income Blended Index2		(1.10	)		2.68			6.95
ICE BofAML U.S. Cash Pay High Yield Index3		0.83			4.66			11.07
J.P. Morgan GBI-EM Global Diversified Composite Index4		(6.58	)		(2.59	)		4.07
Bloomberg Barclays Credit Bond Index5		(2.81	)		2.81			6.43
Bloomberg Barclays U.S. Securitized Index6		(1.48	)		1.76			3.64
J.P. Morgan Global Government Index (ex U.S.)7		(2.22	)		(0.64	)		2.25

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, 2018, was 2.14%, which includes 1.07% of interest expense.

Comparison of NAV vs. market value⁸

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 10.

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

MANAGERS’ DISCUSSION

The Fund’s return based on market value was -1.91% for the 12-month period that ended October 31, 2018. During the same period, the Fund’s return based on its net asset value (NAV) was 1.28%. Based on its NAV return, the Fund outperformed the Multi-Sector Income Blended Index, which lost 1.10% over the same period.

Market conditions shifted across fixed-income sectors during the period.

During the reporting period, U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index⁹ outperformed U.S. investment-grade corporate bonds, as measured by the Bloomberg Barclays U.S. Corporate Bond Index¹⁰. Negative performance from the first and second quarters of 2018 was nearly offset by spread tightening seen in the third quarter, but market volatility in October and a sell-off in risk assets pushed performance down.

Securitized sectors underperformed U.S. Treasuries. Underperformance was driven by the mortgage-backed security (MBS) sector, where spreads widened in reaction to increased volatility and the U.S. Federal Reserve’s sale of bonds purchased as part of its quantitative easing policy. Commercial mortgage-backed securities (CMBS), private-label residential mortgage-backed securities (RMBS), and asset-backed securities (ABS) outperformed when compared with U.S. Treasury bonds with the same duration. In general, lower-rated segments of these sectors outperformed higher-rated segments.

While high-yield market returns were modest—less than 1%, as measured by the ICE BofAML U.S. High Yield Index Constrained Index¹¹—the asset class outperformed many of its higher-quality, fixed-income alternatives, as measured by the Bloomberg Barclays Aggregate Bond Index¹². The return was primarily driven by interest income offset by principal loss. The principal loss was caused by a modest increase in spreads between Treasury bonds and corporate credits as well as higher Treasury yields. The lowest-quality bonds outperformed higher-quality bonds.

Investment flows into high yield have been negative for a number of years. Nonetheless, the market technicals have been strong. High yield has lacked new issuance, and more companies have been upgraded to investment grade (issuers that may be considered rising stars) than have been downgraded to high yield (companies considered fallen angels). This has had the effect of slightly shrinking the size of the high-yield market. By contrast, the bank-loan market has grown over this time and has been the source for financing many of the more aggressively structured deals. This has been a positive for high yield as credit quality by rating has improved. Currently, relative to history, high yield has fewer CCC-rated credits and more BB-rated credits in the benchmark.

From a fundamental perspective, levels of corporate leverage among U.S. companies included in the index remained elevated for this point in the credit cycle, though they declined as the end of the period approached. However, the cash-flow impact from these higher leverage levels is somewhat offset by issuers’ ability to pay low interest rates. A rising London Interbank Offered Rate and higher bond yields will gradually reduce these coverage levels, but rates continue to be low in the context of history.

In emerging markets, fixed-income assets traded in a wide range over the past 12 months, performing well at the start of the period before coming under pressure. Currencies underperformed fixed income, largely due to the strength of the U.S. dollar in the latter half of the reporting period. The Fund maintained its tilt toward higher-yielding emerging markets over the reporting period, but there have been some changes within the overarching bias. With South Africa at risk of losing its last investment-grade rating, the Fund’s exposure has been switched from domestic government bonds to AAA-rated supranationals like the European Investment Bank. The shift was intended to ensure that the Fund had access to the rand interest rate environment without breaching ratings requirements. The managers worked to increase diversification over the reporting period by adding exposure to Brazil and Peru, with the position in the former also in supranational securities. Exposure to India and Malaysia was increased at the expense of Mexico and Colombia. After a period of strong performance, the position in Hungarian government bonds was sold.

Please see footnotes on page 10.

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

Ten largest holdings (%) as of October 31, 201813
Malaysia, 4.23%, 6-30-2031	2.89
Mexico, 8.00%, 11-07-2047	2.32
NGPL PipeCo LLC, 7.77%, 12-15-2037	1.82
Colombia, 7.50%, 8-26-2026	1.76
LPL Holdings Incorporated, 5.75%, 9-15-2025	1.76
Indonesia, 8.38%, 9-15-2026	1.72
Ancestry.com Incorporated, 5.55%, 10-19-2023	1.43
India, 7.80%, 4-11-2021	1.43
Colombia, 7.00%, 9-11-2019	1.42
Indonesia, 8.25%, 5-15-2029	1.37

Credit quality as of October 31, 2018¹⁴

Contributors to performance included securitized sectors, high-yield bond security selection, and selected countries.

Within the mortgage and corporate sleeve of the Fund, securitized holdings generally added value during the period with ABS and RMBS the largest contributors. Agency CMBS and private-label CMBS contributed modestly. Overweights to the financial and industrial sectors were contributors, as was security selection within the financial sector.

Within the Fund’s high-yield portfolio sleeve, security selection was the main driver of positive performance during the period. Selection within the transportation services, cable and satellite, oil-field services, and finance sectors were the largest contributors to relative performance. Overall industry selection benefited performance, while maturity allocation did not have a meaningful impact on performance over the reporting period.

Within the Fund’s allocation to international and emerging market bonds, positions in South Africa, Colombia, and Hungary were amongst the largest positive contributors. Exposure to the Malaysian ringgit was also a value-add.

Selected securities, sector allocations, and the strength of the U.S. dollar restrained performance.

The Fund’s mortgage/corporate credit sleeve holdings in certain residential MBS and CMBS positions modestly detracted from performance during the period due to security-specific prepayment and ratings changes. Security selection within media and entertainment and midstream oil and gas production were also modest detractors.

The main detractors from Fund performance in the high-yield sleeve were an underweight to supermarkets, security selection within media and entertainment, and the combination of an underweight to and selection within the energy exploration and production sector.

Within international and emerging market bonds, the strength of the U.S. dollar in the latter half of the reporting period meant that emerging market currency exposures generally detracted from performance. The Indian rupee, Brazilian real, and Indonesian rupiah were the worst affected. The Indonesian bond market has struggled as well.

The management teams of the Fund’s portfolio sleeves have favorable market outlooks but remain risk-aware.

While the management team of the Fund’s mortgage and corporate bond sleeve expects fundamentals to remain favorable for credit over the remainder of the year, the team sees limited upside from current levels as valuations already reflect a benign macroeconomic environment. Business fundamentals were largely supportive of corporate creditworthiness during the period as earnings surged and profit margins remained high. On a year-over-year basis, both corporate revenue and cash flow increased by about 9% while leverage declined. The reduction in leverage was largely due to improvement in the commodity sector. Excluding commodities, credit metrics remained near the most aggressive levels of this cycle. With credit spreads only slightly wider than the recent tights, overall valuation remains a concern. The team still sees opportunity in BBB-rated names, though, and believes that some financials and utilities offer attractive relative value.

Within securitized sectors, the team remains focused on shorter-duration cash flows in the senior part of the capital structure as credit fundamentals remain stable. Approximately 63% of the Fund’s mortgage and corporate bond sleeve’s exposure is in corporate credit and around 35% is in fixed-rate and floating-rate mortgage securities. The largest industry exposures in the credit sector include banks, media and entertainment, and technology companies.

Please see footnotes on page 10.

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

The management team for the Fund’s high-yield sleeve views most asset classes as richly valued based on historical measures and expects that, at some point in the future, there may be a better entry point to buy most asset classes, including high yield. High yield, however, is rather unique in that it has historically benefited from relatively high coupons, which cushioned downside risks of price declines. With a benign default outlook, high yield should continue to do well, on a relative basis, though idiosyncratic or individual bond risk is high. The sleeve’s management team leans toward spreads remaining flat from these levels in the short run before ultimately widening—potentially significantly—in the mid to longer term.

While the high-yield team continues to remain cautiously optimistic that this environment will continue in the near term, members are cognizant that ideal environments never last forever and that the longer spreads stay low, the risk of an ultimate sell-off increases. Over a full cycle, the high-yield sleeve’s management team believes the best way to insulate the Fund from periodic bouts of systemic fears and rebalancing is by following a bottom-up investment process that attempts to minimize downside risk while capturing the return potential of high-yield issuers.

The Fund’s international and emerging market bond sleeve has weathered a period of heightened volatility in the global markets, with the strength of the U.S. dollar creating a headwind to emerging market gains. There are reasons to be positive on the asset class. Positioning is light among investors when compared with long-term averages and valuations are extremely attractive, which may mitigate the risk of higher levels of outflows from the asset class. The growing narrative around a global slowdown could materially benefit local-currency emerging market bonds.

Effective maturity distribution as of October 31, 2018¹⁵

Country allocation as of October 31, 2018¹⁵

Please see footnotes on page 10.

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

^‡  Ms. van Biljon became a portfolio manager of the Fund on October 3, 2018.

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

²  Source: Wells Fargo Funds Management, LLC. The Multi-Sector Income Blended Index is composed of 60% ICE BofAML U.S. Cash Pay High Yield 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.). You cannot invest directly in an index.

³  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. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

⁴  The J.P. Morgan GBI-EM Global Diversified Composite Index is an unmanaged index of debt instruments of 31 emerging countries. You cannot invest directly in an index.

⁵ 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. You cannot invest directly in an index.

⁶  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. You cannot invest directly in an index.

⁷  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.

⁸  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.

⁹ The Bloomberg Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index.

¹⁰  The Bloomberg Barclays U.S. Corporate Bond Index is an unmanaged market-value-weighted index of investment-grade corporate fixed-rate debt issues with maturities of one year or more. You cannot invest directly in an index.

¹¹  The ICE BofAML U.S. High Yield Constrained Index is a market-value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB-/Baa3 but are not in default. The ICE BofAML U.S. High Yield Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure. You cannot invest directly in an index. Copyright 2018. ICE Data Indices, LLC. All rights reserved.

¹²  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.

¹³  The ten largest holdings, excluding cash, cash equivalents and any money market funds, 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.

¹⁴  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.

¹⁵  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.

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 1.73%
FHLMC (5 Year Treasury Constant Maturity +2.05%) ±		3.53	%		9-1-2032	$	862,936	$	891,123
FHLMC		8.50			7-1-2028		30,609		34,335
FHLMC Series 1383 (1 Year Treasury Constant Maturity +2.25%) ±		3.71			2-1-2037		170,074		179,180
FHLMC Series 196 Class A (1 Month LIBOR +0.80%) ±		3.08			12-15-2021		5,206		5,230
FHLMC Series 2011-K16 Class B 144A±±		4.60			11-25-2046		1,000,000		1,024,580
FHLMC Series 2012-K17 Class B 144A±±		4.34			12-25-2044		675,000		690,713
FHLMC Series 2012-K18 Class B 144A±±		4.26			1-25-2045		810,000		822,671
FHLMC Series 2012-K706 Class B 144A±±		3.97			11-25-2044		110,676		110,455
FHLMC Series 2012-K706 Class C 144A±±		3.97			11-25-2044		805,000		803,281
FHLMC Series 2012-K707 Class B 144A±±		3.86			1-25-2047		930,000		927,983
FHLMC Series 2012-K711 Class B 144A±±		3.57			8-25-2045		264,000		263,993
FHLMC Series 2013-K30 Class B 144A±±		3.56			6-25-2045		700,000		692,217
FHLMC Series 2390 Class FD (1 Month LIBOR +0.45%) ±		2.73			12-15-2031		16,784		16,876
FHLMC Series 2567 Class FH (1 Month LIBOR +0.40%) ±		2.68			2-15-2033		48,006		48,034
FHLMC Series K007 Class X1 ±±(c)		1.04			4-25-2020		760,355		8,716
FHLMC Series K016 Class X1 ±±(c)		1.50			10-25-2021		349,222		12,852
FHLMC Series K020 Class X1 ±±(c)		1.41			5-25-2022		6,318,832		259,181
FNMA (6 Month LIBOR +1.64%) ±		4.14			9-1-2037		50,252		51,935
FNMA		6.00			4-1-2033		58,756		60,008
FNMA		7.50			2-1-2030		21,117		21,212
FNMA		7.50			9-1-2030		27,512		27,637
FNMA Series 1996-46 Class FA (1 Month LIBOR +0.50%) ±		2.78			8-25-2021		2,125		2,126
FNMA Series 1997-20 Class IO ±±(c)		1.84			3-25-2027		427,182		9,502
FNMA Series 2001-25 Class Z		6.00			6-25-2031		83,473		88,671
FNMA Series 2001-35 Class F (1 Month LIBOR +0.60%) ±		2.88			7-25-2031		3,992		4,052
FNMA Series 2001-57 Class F (1 Month LIBOR +0.50%) ±		2.78			6-25-2031		4,019		4,040
FNMA Series 2002-77 Class FH (1 Month LIBOR +0.40%) ±		2.69			12-18-2032		29,498		29,517
FNMA Series 2002-97 Class FR (1 Month LIBOR +0.55%) ±		2.83			1-25-2033		6,949		7,038
FNMA Series G91-16 Class F (1 Month LIBOR +0.45%) ±		2.73			6-25-2021		3,632		3,644
FNMA Series G92-17 Class F (1 Month LIBOR +1.05%) ±		3.33			3-25-2022		16,519		16,695
GNMA		6.50			6-15-2028		20,765		22,650
Total Agency Securities (Cost $6,948,879)									7,140,147
Asset-Backed Securities: 0.84%
Asset-Backed Funding Certificates Series 2003-AHL1 Class A1		4.18			3-25-2033		121,432		120,307
Bear Stearns Asset Backed Securities Series 2002-2 Class A1 (1 Month LIBOR +0.66%) ±		2.94			10-25-2032		147,906		148,371
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.17			2-25-2034		83,122		85,193
CVS Pass-Through Trust Series T		6.04			12-10-2028		465,096		492,608
Five Guys Funding LLC Series 17-1A Class A2 144A		4.60			7-25-2047		992,500		986,322
Mesa Trust Asset Backed Certificates Series 2001-5 Class A (1 Month LIBOR +0.80%) 144A±		3.08			12-25-2031		11,062		10,915
MMAF Equipment Finance LLC Series 2017-AA Class A4 144A		2.41			8-16-2024		170,000		165,015
Saxon Asset Securities Trust Series 2002-1 Class AF5		5.91			12-25-2030		117,463		119,844
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03			6-25-2033		343,569		348,434
Structured Asset Securities Corporation Series 1998-2 Class A (1 Month LIBOR +0.52%) ±		2.80			2-25-2028		91,459		90,832
Structured Asset Securities Corporation Series 2002-9 Class A2 (1 Month LIBOR +0.60%) ±		2.88			10-25-2027		34,282		33,907

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

12 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Student Loan Consolidation Center Series 2011-1 Class A (1 Month LIBOR +1.22%) 144A±		3.50	%		10-25-2027	$	406,054	$	410,287
World Financial Network Credit Card Master Trust Series 2016-C Class M		1.98			8-15-2023		500,000		493,008
Total Asset-Backed Securities (Cost $3,553,250)									3,505,043
						Shares
Common Stocks: 0.00%
Materials: 0.00%
Chemicals: 0.00%
LyondellBasell Industries NV Class A							9		803
Total Common Stocks (Cost $779)									803
						Principal
Corporate Bonds and Notes: 80.16%
Communication Services: 11.74%
Diversified Telecommunication Services: 1.36%
AT&T Incorporated		3.80			3-15-2022	$	750,000		749,084
GCI Incorporated		6.75			6-1-2021		1,000,000		1,008,550
Level 3 Financing Incorporated		5.13			5-1-2023		975,000		967,688
Level 3 Financing Incorporated		5.25			3-15-2026		650,000		624,000
Level 3 Financing Incorporated		5.38			8-15-2022		300,000		300,375
Level 3 Financing Incorporated		5.38			1-15-2024		700,000		693,000
Level 3 Financing Incorporated		5.38			5-1-2025		625,000		610,156
Level 3 Financing Incorporated		5.63			2-1-2023		500,000		501,765
Level 3 Financing Incorporated		6.13			1-15-2021		175,000		175,438
									5,630,056
Entertainment: 0.39%
Live Nation Entertainment Incorporated 144A		4.88			11-1-2024		1,400,000		1,340,500
Live Nation Entertainment Incorporated 144A		5.63			3-15-2026		250,000		250,000
									1,590,500
Media: 8.26%
Altice US Finance I Corporation 144A		5.38			7-15-2023		1,395,000		1,394,735
Altice US Finance I Corporation 144A		5.50			5-15-2026		1,275,000		1,241,927
CCO Holdings LLC 144A		4.00			3-1-2023		100,000		95,250
CCO Holdings LLC 144A		5.00			2-1-2028		150,000		140,063
CCO Holdings LLC		5.13			2-15-2023		100,000		99,500
CCO Holdings LLC 144A		5.13			5-1-2027		450,000		423,563
CCO Holdings LLC		5.25			9-30-2022		1,250,000		1,256,250
CCO Holdings LLC 144A		5.38			5-1-2025		4,150,000		4,061,813
CCO Holdings LLC 144A		5.50			5-1-2026		215,000		209,356
CCO Holdings LLC		5.75			9-1-2023		50,000		50,375
CCO Holdings LLC 144A		5.75			2-15-2026		3,375,000		3,341,250
CCO Holdings LLC 144A		5.88			4-1-2024		1,250,000		1,260,938
Cequel Communications Holdings 144A		7.75			7-15-2025		2,030,000		2,141,650

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
Cinemark USA Incorporated		4.88	%		6-1-2023	$	375,000	$	366,094
CSC Holdings LLC 144A		5.38			2-1-2028		425,000		400,563
CSC Holdings LLC		8.63			2-15-2019		383,000		386,830
Dish Network Corporation		3.38			8-15-2026		925,000		824,129
EMI Music Publishing Group 144A		7.63			6-15-2024		1,425,000		1,530,094
Gray Television Incorporated 144A		5.13			10-15-2024		450,000		428,063
Gray Television Incorporated 144A		5.88			7-15-2026		3,875,000		3,718,799
Interpublic Group of Companies		4.00			3-15-2022		750,000		748,721
Lamar Media Corporation		5.38			1-15-2024		375,000		375,469
National CineMedia LLC		6.00			4-15-2022		1,950,000		1,969,500
Nexstar Broadcasting Group Incorporated 144A		5.63			8-1-2024		850,000		811,750
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		950,000		967,813
Nielsen Finance LLC 144A		5.00			4-15-2022		75,000		73,031
Outfront Media Capital Corporation		5.63			2-15-2024		20,000		20,025
Outfront Media Capital Corporation		5.88			3-15-2025		775,000		777,906
Salem Media Group Incorporated 144A		6.75			6-1-2024		2,200,000		1,969,000
The E.W. Scripps Company 144A		5.13			5-15-2025		2,460,000		2,312,400
Time Warner Cable Incorporated		4.00			1-15-2022		750,000		755,441
									34,152,298
Wireless Telecommunication Services: 1.73%
Sprint Capital Corporation		6.88			11-15-2028		1,025,000		1,007,063
Sprint Capital Corporation		8.75			3-15-2032		1,625,000		1,767,350
Sprint Communications Incorporated		7.00			8-15-2020		225,000		232,875
T-Mobile USA Incorporated		4.00			4-15-2022		650,000		641,875
T-Mobile USA Incorporated		4.50			2-1-2026		125,000		116,993
T-Mobile USA Incorporated		4.75			2-1-2028		125,000		115,781
T-Mobile USA Incorporated		5.13			4-15-2025		425,000		418,625
T-Mobile USA Incorporated		5.38			4-15-2027		1,500,000		1,466,250
T-Mobile USA Incorporated		6.00			3-1-2023		300,000		306,780
T-Mobile USA Incorporated		6.38			3-1-2025		975,000		1,005,469
T-Mobile USA Incorporated		6.50			1-15-2024		80,000		82,800
									7,161,861
Consumer Discretionary: 7.61%
Auto Components: 1.39%
Allison Transmission Incorporated 144A		4.75			10-1-2027		650,000		597,188
Allison Transmission Incorporated 144A		5.00			10-1-2024		2,250,000		2,183,895
Cooper Tire & Rubber Company		7.63			3-15-2027		1,710,000		1,833,975
Cooper Tire & Rubber Company		8.00			12-15-2019		600,000		624,000
Goodyear Tire & Rubber Company		8.75			8-15-2020		468,000		502,515
									5,741,573
Distributors: 0.28%
LKQ Corporation		4.75			5-15-2023		1,075,000		1,037,375
Spectrum Brands Incorporated		6.63			11-15-2022		125,000		127,656
									1,165,031

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

14 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Diversified Consumer Services: 1.44%
Carriage Services Incorporated 144A		6.63	%		6-1-2026	$	575,000	$	576,438
Service Corporation International		4.63			12-15-2027		650,000		609,375
Service Corporation International		5.38			5-15-2024		100,000		101,125
Service Corporation International		7.50			4-1-2027		3,400,000		3,740,000
Service Corporation International		8.00			11-15-2021		850,000		928,625
									5,955,563
Hotels, Restaurants & Leisure: 1.37%
CCM Merger Incorporated 144A		6.00			3-15-2022		3,533,000		3,594,828
Hilton Domestic Operating Company Incorporated 144A		5.13			5-1-2026		425,000		415,438
Wyndham Hotels & Resorts Company 144A		5.38			4-15-2026		1,725,000		1,673,250
									5,683,516
Internet & Direct Marketing Retail: 0.19%
Expedia Incorporated		5.95			8-15-2020		750,000		778,733
Multiline Retail: 0.14%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		600,000		595,956
Specialty Retail: 2.32%
Advance Auto Parts Incorporated		4.50			1-15-2022		600,000		610,610
Asbury Automotive Group Incorporated		6.00			12-15-2024		1,175,000		1,154,438
Group 1 Automotive Incorporated		5.00			6-1-2022		200,000		195,000
Group 1 Automotive Incorporated 144A		5.25			12-15-2023		1,500,000		1,443,750
Lithia Motors Incorporated 144A		5.25			8-1-2025		945,000		890,663
Penske Auto Group Incorporated		3.75			8-15-2020		540,000		534,600
Penske Auto Group Incorporated		5.38			12-1-2024		2,150,000		2,088,188
Penske Auto Group Incorporated		5.75			10-1-2022		1,155,000		1,170,881
Sonic Automotive Incorporated		5.00			5-15-2023		849,000		789,629
Sonic Automotive Incorporated		6.13			3-15-2027		775,000		703,313
									9,581,072
Textiles, Apparel & Luxury Goods: 0.48%
The William Carter Company		5.25			8-15-2021		600,000		602,250
Wolverine World Wide Incorporated 144A		5.00			9-1-2026		1,411,000		1,365,143
									1,967,393
Consumer Staples: 1.50%
Beverages: 0.30%
Anheuser-Busch InBev Finance Incorporated		3.75			1-15-2022		600,000		600,271
Cott Beverages Incorporated 144A		5.50			4-1-2025		675,000		642,938
									1,243,209
Food Products: 0.97%
B&G Foods Incorporated		4.63			6-1-2021		300,000		298,125
B&G Foods Incorporated		5.25			4-1-2025		1,050,000		1,000,125
Darling Ingredients Incorporated		5.38			1-15-2022		180,000		180,450
Kraft Heinz Foods Company		3.50			6-6-2022		750,000		741,247
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		175,000		171,407

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Food Products (continued)
Pilgrim’s Pride Corporation 144A		5.75	%		3-15-2025	$	1,305,000	$	1,216,913
Pilgrim’s Pride Corporation 144A		5.88			9-30-2027		150,000		136,125
Prestige Brands Incorporated 144A		6.38			3-1-2024		280,000		276,500
									4,020,892
Household Products: 0.06%
Central Garden & Pet Company		5.13			2-1-2028		225,000		207,563
Spectrum Brands Incorporated		5.75			7-15-2025		50,000		48,500
									256,063
Tobacco: 0.17%
Reynolds American Incorporated		6.88			5-1-2020		650,000		681,954
Energy: 20.11%
Energy Equipment & Services: 6.14%
Bristow Group Incorporated		6.25			10-15-2022		3,430,000		2,521,050
Bristow Group Incorporated 144A		8.75			3-1-2023		775,000		730,438
Diamond Offshore Drilling Incorporated		4.88			11-1-2043		1,325,000		901,000
Era Group Incorporated		7.75			12-15-2022		2,350,000		2,326,500
Hilcorp Energy Company 144A		5.00			12-1-2024		1,450,000		1,366,625
Hilcorp Energy Company 144A		5.75			10-1-2025		1,775,000		1,726,188
Hilcorp Energy Company 144A		6.25			11-1-2028		350,000		336,879
Hornbeck Offshore Services Incorporated		1.50			9-1-2019		4,750,000		4,277,703
Hornbeck Offshore Services Incorporated		5.00			3-1-2021		150,000		107,250
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		1,325,000		1,003,688
NGPL PipeCo LLC 144A		4.38			8-15-2022		350,000		345,625
NGPL PipeCo LLC 144A		4.88			8-15-2027		550,000		529,375
NGPL PipeCo LLC 144A		7.77			12-15-2037		6,435,000		7,528,950
Oceaneering International Incorporated		6.00			2-1-2028		800,000		779,990
USA Compression Partners LP 144A		6.88			4-1-2026		850,000		864,875
									25,346,136
Oil, Gas & Consumable Fuels: 13.97%
Carrizo Oil & Gas Incorporated		8.25			7-15-2025		800,000		830,000
Cheniere Energy Partners LP		5.25			10-1-2025		3,875,000		3,802,344
Cheniere Energy Partners LP 144A		5.63			10-1-2026		400,000		394,000
Continental Resources Incorporated		4.38			1-15-2028		250,000		241,728
DCP Midstream Operating LP		2.70			4-1-2019		725,000		719,563
Denbury Resources Incorporated		6.38			8-15-2021		3,209,000		2,984,370
Denbury Resources Incorporated 144A		9.25			3-31-2022		676,000		704,730
El Paso LLC		6.50			4-1-2020		750,000		781,223
Enable Midstream Partner LP		2.40			5-15-2019		2,350,000		2,337,509
Enable Midstream Partner LP		3.90			5-15-2024		1,750,000		1,685,515
Enable Oklahoma Intrastate Transmission LLC 144A		6.25			3-15-2020		250,000		257,238
Energy Transfer Partners LP		5.20			2-1-2022		750,000		775,354
EnLink Midstream Partners LP		4.40			4-1-2024		3,200,000		3,064,100
EnLink Midstream Partners LP		4.85			7-15-2026		600,000		568,466
Exterran Partners LP		6.00			4-1-2021		2,550,000		2,524,500
Kinder Morgan Energy Partners LP		3.95			9-1-2022		750,000		751,286

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

16 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Kinder Morgan Incorporated		6.50	%		9-15-2020	$	285,000	$	299,218
Kinder Morgan Incorporated		7.42			2-15-2037		800,000		903,386
Murphy Oil Corporation		4.45			12-1-2022		1,250,000		1,217,097
Murphy Oil Corporation		5.75			8-15-2025		185,000		184,020
Murphy Oil Corporation		6.88			8-15-2024		850,000		887,808
Nabors Industries Incorporated		0.75			1-15-2024		1,425,000		1,062,098
Nabors Industries Incorporated		4.63			9-15-2021		750,000		721,822
Phillips 66		4.30			4-1-2022		625,000		637,877
Pioneer Natural Resources Company		3.95			7-15-2022		750,000		751,187
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		3,500,000		3,575,950
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		3,074,000		3,342,975
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		240,000		274,800
Rose Rock Midstream LP		5.63			7-15-2022		1,300,000		1,248,000
Rose Rock Midstream LP		5.63			11-15-2023		825,000		779,625
Sabine Pass Liquefaction LLC		5.63			2-1-2021		600,000		620,821
Sabine Pass Liquefaction LLC		5.63			4-15-2023		1,500,000		1,579,245
Sabine Pass Liquefaction LLC		5.75			5-15-2024		1,000,000		1,059,119
Sabine Pass Liquefaction LLC		6.25			3-15-2022		1,575,000		1,678,180
SemGroup Corporation		6.38			3-15-2025		3,425,000		3,313,688
SemGroup Corporation		7.25			3-15-2026		1,000,000		976,250
Southern Star Central Corporation 144A		5.13			7-15-2022		925,000		909,969
Southwestern Energy Company		7.50			4-1-2026		400,000		407,000
Southwestern Energy Company		7.75			10-1-2027		400,000		408,000
Summit Midstream Holdings LLC		5.75			4-15-2025		225,000		215,438
Tallgrass Energy Partners LP 144A		4.75			10-1-2023		625,000		618,359
Tallgrass Energy Partners LP 144A		5.50			9-15-2024		5,200,000		5,232,500
Tallgrass Energy Partners LP 144A		5.50			1-15-2028		150,000		148,284
Tesoro Logistics LP		6.38			5-1-2024		450,000		475,650
Ultra Resources Incorporated 144A		7.13			4-15-2025		2,425,000		1,067,000
Williams Partners LP		3.35			8-15-2022		750,000		730,107
									57,747,399
Financials: 7.96%
Banks: 2.26%
Bank of America Corporation		5.70			1-24-2022		250,000		265,225
Citigroup Incorporated		4.13			3-9-2021		60,000		59,850
Citigroup Incorporated		4.50			1-14-2022		250,000		255,369
Citigroup Incorporated		6.13			3-9-2028		75,000		77,813
City National Bank		5.38			7-15-2022		500,000		522,186
International Bank for Reconstruction & Development		7.50			6-9-2021		5,000,000		1,345,291
International Bank for Reconstruction & Development		8.25			6-22-2023		9,000,000		2,372,007
International Finance Corporation		7.50			5-9-2022		14,000,000		3,704,296
JPMorgan Chase & Company		3.38			5-1-2023		750,000		731,350
									9,333,387
Capital Markets: 0.50%
ACE Securities Corporation (1 Month LIBOR +2.63%) ±		4.91			6-25-2033		155,696		155,628
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		750,000		788,703

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets (continued)
Goldman Sachs Group Incorporated		5.75	%		1-24-2022	$	750,000	$	792,589
MSCI Incorporated 144A		5.38			5-15-2027		350,000		346,500
									2,083,420
Consumer Finance: 1.51%
Ally Financial Incorporated		8.00			12-31-2018		780,000		784,875
Ally Financial Incorporated		8.00			3-15-2020		880,000		922,900
Discover Financial Services		5.20			4-27-2022		750,000		774,615
FirstCash Incorporated 144A		5.38			6-1-2024		575,000		566,375
General Motors Financial Company Incorporated		3.70			5-9-2023		750,000		724,917
Navient Corporation		8.00			3-25-2020		930,000		970,688
Springleaf Finance Corporation		6.00			6-1-2020		825,000		842,531
Springleaf Finance Corporation		7.13			3-15-2026		700,000		663,250
									6,250,151
Diversified Financial Services: 1.96%
ING US Incorporated		5.50			7-15-2022		327,000		345,058
LPL Holdings Incorporated 144A		5.75			9-15-2025		7,500,000		7,275,000
Vantiv LLC 144A		4.38			11-15-2025		500,000		471,875
									8,091,933
Insurance: 1.73%
American International Group Incorporated		4.88			6-1-2022		750,000		771,699
AmWINS Group Incorporated 144A		7.75			7-1-2026		1,125,000		1,155,938
Hartford Financial Services Group Incorporated		5.13			4-15-2022		650,000		678,202
HUB International Limited 144A		7.00			5-1-2026		500,000		488,000
Liberty Mutual Group Incorporated 144A		4.95			5-1-2022		750,000		772,158
ProAssurance Corporation		5.30			11-15-2023		750,000		784,531
Prudential Financial Incorporated (3 Month LIBOR +2.38%) ±		4.50			9-15-2047		750,000		682,500
USIS Merger Subordinate Incorporated 144A		6.88			5-1-2025		1,175,000		1,145,625
W.R. Berkley Corporation		4.63			3-15-2022		650,000		665,054
									7,143,707
Health Care: 8.02%
Biotechnology: 0.18%
Amgen Incorporated		3.63			5-15-2022		750,000		748,534
Health Care Equipment & Supplies: 1.38%
Hill-Rom Holdings Incorporated 144A		5.00			2-15-2025		400,000		386,000
Hill-Rom Holdings Incorporated 144A		5.75			9-1-2023		200,000		202,250
Hologic Incorporated 144A		4.38			10-15-2025		1,925,000		1,804,688
Hologic Incorporated 144A		4.63			2-1-2028		225,000		205,594
Kinetics Concepts Incorporated 144A		7.88			2-15-2021		1,425,000		1,457,063
Surgery Center Holdings Incorporated 144A		6.75			7-1-2025		500,000		468,750
Surgery Center Holdings Incorporated 144A		8.88			4-15-2021		1,150,000		1,181,625
									5,705,970

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

18 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services: 5.44%
Acadia Healthcare Company Incorporated		6.50	%		3-1-2024	$	190,000	$	193,135
Centene Corporation 144A		5.38			6-1-2026		575,000		583,625
Centene Corporation		6.13			2-15-2024		325,000		339,625
CHS Incorporated		5.13			8-1-2021		1,850,000		1,752,875
Coventry Health Care Incorporated		5.45			6-15-2021		750,000		780,997
Davita Incorporated		5.00			5-1-2025		950,000		894,188
Express Scripts Holding Company		3.90			2-15-2022		665,000		666,970
HCA Incorporated		5.25			6-15-2026		325,000		330,688
HCA Incorporated		6.50			2-15-2020		1,400,000		1,445,500
HealthSouth Corporation		5.75			9-15-2025		575,000		569,250
Mednax Incorporated 144A		5.25			12-1-2023		475,000		475,000
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		2,861,000		2,906,261
MPT Operating Partnership LP		5.00			10-15-2027		1,100,000		1,033,670
MPT Operating Partnership LP		5.25			8-1-2026		1,575,000		1,519,875
MPT Operating Partnership LP		6.38			3-1-2024		110,000		113,850
NVA Holdings Company 144A		6.88			4-1-2026		200,000		197,500
Polaris Intermediate Corporation 144A		8.50			12-1-2022		475,000		486,875
Select Medical Corporation		6.38			6-1-2021		3,050,000		3,076,688
Tenet Healthcare Corporation		4.63			7-15-2024		436,000		420,239
Tenet Healthcare Corporation		6.00			10-1-2020		700,000		716,835
Vizient Incorporated 144A		10.38			3-1-2024		3,550,000		3,869,500
Wellcare Health Plans Incorporated 144A		5.38			8-15-2026		125,000		124,688
									22,497,834
Health Care Technology: 0.59%
Change Healthcare Holdings Incorporated 144A		5.75			3-1-2025		1,950,000		1,906,125
Quintiles IMS Holdings Incorporated 144A		4.88			5-15-2023		300,000		296,625
Quintiles IMS Holdings Incorporated 144A		5.00			10-15-2026		225,000		216,491
									2,419,241
Life Sciences Tools & Services: 0.25%
Charles River Laboratories Incorporated 144A		5.50			4-1-2026		275,000		274,313
Life Technologies Corporation		6.00			3-1-2020		750,000		773,855
									1,048,168
Pharmaceuticals: 0.18%
Watson Pharmaceuticals Incorporated		3.25			10-1-2022		750,000		728,082
Industrials: 5.48%
Aerospace & Defense: 0.70%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		1,000,000		983,092
L-3 Communications Corporation		4.95			2-15-2021		750,000		769,057
RBS Global & Rexnord LLC 144A		4.88			12-15-2025		1,200,000		1,125,000
									2,877,149
Airlines: 0.86%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		1,100,000		1,171,601
BBA US Holdings Incorporated 144A		5.38			5-1-2026		2,025,000		2,002,219
Delta Air Lines Incorporated		4.75			11-7-2021		358,856		364,002
									3,537,822

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies: 3.13%
Advanced Disposal Services Incorporated 144A		5.63	%		11-15-2024	$	1,750,000	$	1,706,250
Aramark Services Incorporated 144A		5.00			2-1-2028		225,000		213,469
Aramark Services Incorporated		5.13			1-15-2024		545,000		542,275
Covanta Holding Corporation		5.88			3-1-2024		1,530,000		1,526,175
Covanta Holding Corporation		5.88			7-1-2025		900,000		873,000
Covanta Holding Corporation		6.00			1-1-2027		1,150,000		1,109,750
Covanta Holding Corporation		6.38			10-1-2022		1,750,000		1,787,188
KAR Auction Services Incorporated 144A		5.13			6-1-2025		4,950,000		4,690,125
Waste Pro USA Incorporated 144A		5.50			2-15-2026		375,000		355,313
Wrangler Buyer Corporation 144A		6.00			10-1-2025		125,000		134,063
									12,937,608
Electrical Equipment: 0.12%
Resideo Funding Incorporated 144A		6.13			11-1-2026		500,000		502,615
Industrial Conglomerates: 0.05%
General Electric Capital Corporation		4.65			10-17-2021		187,000		190,102
Machinery: 0.34%
Stevens Holding Company Incorporated 144A		6.13			10-1-2026		1,425,000		1,419,827
Professional Services: 0.13%
Verisk Analytics Incorporated		5.80			5-1-2021		530,000		556,018
Road & Rail: 0.15%
TTX Company 144A		2.60			6-15-2020		650,000		639,736
Information Technology: 6.23%
Communications Equipment: 0.37%
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		825,000		802,313
Motorola Solutions Incorporated		3.75			5-15-2022		750,000		738,218
									1,540,531
Electronic Equipment, Instruments & Components: 0.15%
Keysight Technologies		4.60			4-6-2027		600,000		596,259
IT Services: 2.75%
Cardtronics Incorporated		5.13			8-1-2022		560,000		537,600
Cardtronics Incorporated 144A		5.50			5-1-2025		1,390,000		1,292,700
First Data Corporation 144A		5.00			1-15-2024		2,725,000		2,697,750
First Data Corporation 144A		5.38			8-15-2023		332,000		334,905
First Data Corporation 144A		5.75			1-15-2024		375,000		377,344
First Data Corporation 144A		7.00			12-1-2023		975,000		1,011,075
Gartner Incorporated 144A		5.13			4-1-2025		1,400,000		1,389,500
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13			5-1-2021		550,000		552,750
Information Incorporated		6.50			5-15-2022		550,000		548,625
Zayo Group LLC 144A		5.75			1-15-2027		1,150,000		1,127,230
Zayo Group LLC		6.00			4-1-2023		75,000		76,500
Zayo Group LLC		6.38			5-15-2025		1,400,000		1,431,500
									11,377,479

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

20 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Software: 0.25%
CDK Global Incorporated		5.00	%		10-15-2024	$	225,000	$	222,120
CDK Global Incorporated		5.88			6-15-2026		175,000		176,313
Fair Isaac Corporation 144A		5.25			5-15-2026		175,000		172,594
Symantec Corporation 144A		5.00			4-15-2025		475,000		446,874
									1,017,901
Technology Hardware, Storage & Peripherals: 2.71%
Dell International LLC 144A		5.88			6-15-2021		1,000,000		1,013,793
Dell International LLC 144A		7.13			6-15-2024		4,525,000		4,788,872
Hewlett-Packard Company		4.05			9-15-2022		750,000		757,259
NCR Corporation		5.88			12-15-2021		5,000		5,006
NCR Corporation		6.38			12-15-2023		4,650,000		4,638,375
									11,203,305
Materials: 2.18%
Chemicals: 0.27%
Dow Chemical Company		4.13			11-15-2021		750,000		761,049
Valvoline Incorporated		5.50			7-15-2024		375,000		372,656
									1,133,705
Containers & Packaging: 1.91%
Ball Corporation		4.88			3-15-2026		575,000		567,094
Ball Corporation		5.00			3-15-2022		25,000		25,375
Ball Corporation		5.25			7-1-2025		190,000		191,188
Berry Global Incorporated		5.13			7-15-2023		350,000		348,250
Berry Global Incorporated		6.00			10-15-2022		215,000		219,569
Crown Americas LLC 144A		4.75			2-1-2026		850,000		802,188
Crown Cork & Seal Company Incorporated		7.38			12-15-2026		35,000		37,450
Flex Acquisition Company Incorporated 144A		6.88			1-15-2025		1,500,000		1,402,500
Flex Acquisition Company Incorporated 144A		7.88			7-15-2026		275,000		265,458
Owens-Brockway Glass Container Incorporated 144A		5.88			8-15-2023		325,000		323,781
Owens-Illinois Incorporated 144A		6.38			8-15-2025		3,100,000		3,115,500
Reynolds Group Issuer Incorporated 144A		5.13			7-15-2023		200,000		195,750
Sealed Air Corporation 144A		5.25			4-1-2023		325,000		321,750
Silgan Holdings Incorporated		5.50			2-1-2022		75,000		75,750
									7,891,603
Metals & Mining: 0.00%
Indalex Holdings Corporation (a)†		11.50			2-1-2020		3,170,000		0
Real Estate: 4.45%
Equity REITs: 4.45%
Alexandria Real Estate Company		4.60			4-1-2022		650,000		665,580
American Tower Corporation		5.90			11-1-2021		650,000		688,198
CoreCivic Incorporated		5.00			10-15-2022		575,000		555,594
DDR Corporation		4.70			6-1-2027		600,000		597,130
Equinix Incorporated		5.75			1-1-2025		1,275,000		1,298,906
Equinix Incorporated		5.88			1-15-2026		425,000		431,375

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Equity REITs (continued)
ESH Hospitality Incorporated 144A		5.25	%		5-1-2025	$	1,700,000	$	1,608,625
Essex Portfolio LP		3.63			8-15-2022		750,000		741,406
Iron Mountain Incorporated 144A		5.25			3-15-2028		675,000		605,813
Iron Mountain Incorporated 144A		5.38			6-1-2026		150,000		138,000
Iron Mountain Incorporated		6.00			8-15-2023		2,500,000		2,559,375
MGM Growth Properties LLC		4.50			1-15-2028		400,000		358,000
Omega HealthCare Investors Incorporated		4.50			4-1-2027		600,000		574,028
Sabra Health Care LP		5.38			6-1-2023		900,000		895,500
Sabra Health Care REIT Incorporated		5.50			2-1-2021		1,225,000		1,241,078
SBA Communications Corporation		4.00			10-1-2022		225,000		215,438
SBA Communications Corporation		4.88			7-15-2022		640,000		636,800
The Geo Group Incorporated		5.13			4-1-2023		800,000		751,000
The Geo Group Incorporated		5.88			1-15-2022		1,565,000		1,547,394
The Geo Group Incorporated		5.88			10-15-2024		840,000		778,932
The Geo Group Incorporated		6.00			4-15-2026		184,000		168,360
Ventas Realty LP		4.25			3-1-2022		650,000		660,514
Welltower Incorporated		5.25			1-15-2022		650,000		676,140
									18,393,186
Utilities: 4.88%
Electric Utilities: 0.19%
Great Plains Energy Incorporated		4.85			6-1-2021		750,000		765,479
Gas Utilities: 0.22%
AmeriGas Partners LP		5.75			5-20-2027		1,000,000		927,500
Independent Power & Renewable Electricity Producers: 4.16%
NextEra Energy Operating Partners LP 144A		4.25			9-15-2024		175,000		166,250
NextEra Energy Operating Partners LP 144A		4.50			9-15-2027		325,000		299,813
NSG Holdings LLC 144A		7.75			12-15-2025		4,670,629		5,044,279
Pattern Energy Group Incorporated 144A		5.88			2-1-2024		5,225,000		5,172,750
TerraForm Global Operating LLC 144A		6.13			3-1-2026		1,175,000		1,092,750
TerraForm Power Operating LLC 144A		4.25			1-31-2023		3,025,000		2,866,188
TerraForm Power Operating LLC 144A		5.00			1-31-2028		675,000		603,281
TerraForm Power Operating LLC 144A		6.63			6-15-2025		1,850,000		1,928,625
									17,173,936
Multi-Utilities: 0.31%
Ameren Illinois Company		9.75			11-15-2018		500,000		501,260
CMS Energy Corporation		5.05			3-15-2022		750,000		779,595
									1,280,855
Total Corporate Bonds and Notes (Cost $332,151,227)									331,312,248
Foreign Corporate Bonds and Notes @: 4.69%
Communication Services: 0.30%
Wireless Telecommunication Services: 0.30%
America Movil SAB de CV (MXN)		7.13			12-9-2024		28,850,000		1,242,311

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

22 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Energy: 0.28%
Oil, Gas & Consumable Fuels: 0.28%
Petroleos Mexicanos 144A (MXN)		7.19	%		9-12-2024		28,200,000	$	1,166,373
Financials: 4.11%
Banks: 4.04%
European Investment Bank (BRL)		7.25			6-28-2021		9,000,000		2,401,451
European Investment Bank (ZAR)		7.50			4-13-2022		9,000,000		2,379,956
European Investment Bank (ZAR)		8.00			5-5-2027		21,000,000		1,334,320
European Investment Bank (ZAR)		8.38			7-29-2022		40,000,000		2,708,314
European Investment Ban (ZAR)		8.75			8-18-2025		20,000,000		1,335,028
European Investment Bank (ZAR)		9.00			3-31-2021		17,400,000		1,199,323
International Bank for Reconstruction & Development (ZAR)		7.00			6-7-2023		15,000,000		953,228
KfW (AUD)		5.00			3-19-2024		1,300,000		1,025,472
Landwirtschaftliche Rentenbank (ZAR)		6.00			3-18-2019		35,000,000		2,355,203
Landwirtschaftliche Rentenbank (ZAR)		8.25			5-23-2022		15,000,000		1,009,354
									16,701,649
Diversified Financial Services: 0.07%
AA Bond Company Limited (GBP)		4.25			7-31-2043		200,000		262,699
Total Foreign Corporate Bonds and Notes (Cost $23,266,155)									19,373,032
Foreign Government Bonds @: 20.86%
Colombia (COP)		6.00			4-28-2028		6,800,000,000		1,943,283
Colombia (COP)		7.00			9-11-2019		18,500,000,000		5,855,294
Colombia (COP)		7.50			8-26-2026		22,725,000,000		7,275,892
India (INR)		7.16			5-20-2023		420,000,000		5,526,540
India (INR)		7.80			4-11-2021		435,000,000		5,901,576
Indonesia (IDR)		7.50			8-15-2032		57,000,000,000		3,331,327
Indonesia (IDR)		8.25			5-15-2029		88,615,000,000		5,668,446
Indonesia (IDR)		8.38			9-15-2026		110,000,000,000		7,128,904
Malaysia (MYR)		4.18			7-15-2024		19,850,000		4,787,182
Malaysia (MYR)		4.23			6-30-2031		51,300,000		11,933,941
Mexico (MXN)		5.75			3-5-2026		72,000,000		2,964,430
Mexico (MXN)		8.00			11-7-2047		217,500,000		9,604,660
New Zealand (NZD)		2.75			4-15-2037		1,950,000		1,253,400
New Zealand (NZD)		4.50			4-15-2027		6,085,000		4,610,031
Queensland Treasury (AUD)		5.75			7-22-2024		4,100,000		3,379,863
Republic of Peru (PEN)		6.35			8-12-2028		16,400,000		5,052,791
Total Foreign Government Bonds (Cost $97,229,531)									86,217,560
Loans: 21.35%
Communication Services: 2.36%
Diversified Telecommunication Services: 0.72%
Level 3 Financing Incorporated (1 Month LIBOR +2.25%) ±		4.53			2-22-2024	$	555,420		555,681
Telesat Canada (3 Month LIBOR +2.50%) ±		4.89			11-17-2023		2,435,616		2,435,007
									2,990,688

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Media: 1.53%
A-L Parent LLC (1 Month LIBOR +3.25%) ±‡		5.56	%		12-1-2023	$	3,438,750	$	3,438,750
Altice US Finance I Corporation <%%		0.00			1-10-2026		500,000		498,595
Altice US Finance I Corporation (1 Month LIBOR +2.25%) ±		4.55			7-28-2025		708,814		707,191
CSC Holdings LLC (1 Month LIBOR +2.50%) ±		4.78			1-25-2026		149,250		148,923
Hubbard Radio LLC <%%		0.00			3-28-2025		1,240,715		1,237,092
National CineMedia LLC (1 Month LIBOR +3.00%) ±		5.31			6-20-2025		299,250		298,876
									6,329,427
Wireless Telecommunication Services: 0.11%
Sprint Communications Incorporated (1 Month LIBOR +2.50%) ±		4.81			2-2-2024		443,250		442,833
Consumer Discretionary: 4.20%
Auto Components: 0.52%
Allison Transmission Incorporated (1 Month LIBOR +1.75%) ±		4.04			9-23-2022		1,836,180		1,844,443
Belron Finance US LLC (3 Month LIBOR +2.50%) ±		4.84			11-7-2024		297,750		298,122
									2,142,565
Distributors: 0.59%
Spin Holdco Incorporated (3 Month LIBOR +3.25%) ±		5.69			11-14-2022		2,441,239		2,440,726
Food & Staples Retailing: 0.09%
TKC Holdings Incorporated (1 Month LIBOR +3.75%) ±		6.06			2-1-2023		394,000		393,858
Hotels, Restaurants & Leisure: 2.70%
CCM Merger Incorporated (1 Month LIBOR +2.75%) ±		4.55			8-8-2021		604,284		604,735
Four Seasons Holdings Incorporated (1 Month LIBOR +2.00%) ±		4.30			11-30-2023		894,723		894,240
Greektown Holdings LLC (1 Month LIBOR +2.75%) ±		5.05			4-25-2024		4,949,875		4,929,234
Montreign Operating Company LLC (1 Month LIBOR +8.25%) ±		10.55			1-24-2023		5,348,125		4,746,461
									11,174,670
Household Products: 0.22%
Anastasia Parent LLC Term Loan (2 Month LIBOR +3.75%) ±		6.03			8-11-2025		275,000		273,969
Anchor Glass Container Corporation (1 Month LIBOR +7.75%) ±		10.04			12-7-2024		650,000		425,750
Lifetime Brands Incorporated (1 Month LIBOR +3.50%) ‡		5.80			2-28-2025		199,000		197,508
									897,227
Internet & Direct Marketing Retail: 0.08%
Shutterfly Incorporated (1 Month LIBOR +2.75%) ±		5.06			8-17-2024		324,188		324,025
Consumer Staples: 0.07%
Food Products: 0.07%
CHG PPC Parent LLC (1 Month LIBOR +2.75%) ±‡		5.05			3-31-2025		124,688		124,220
Prestige Brands Incorporated (1 Month LIBOR +2.00%) ±		4.30			1-26-2024		141,182		141,308
									265,528
Energy: 1.00%
Energy Equipment & Services: 0.15%
ExGen Renewables IV LLC (3 Month LIBOR +3.00%) ±‡		5.32			11-28-2024		637,455		642,235

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

24 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels: 0.85%
Encino Acquisition Partners Holdings LLC <%%‡		0.00	%		9-21-2025	$	600,000	$	609,000
Grizzly Acquisitions Incorporated (2 Month LIBOR +3.25%) ±		5.65			10-1-2025		175,000		175,730
Lucid Energy Group II Borrower LLC (1 Month LIBOR +3.00%) ±		5.28			2-17-2025		223,875		219,818
Traverse Midstream Partners LLC (6 Month LIBOR +4.00%) ±		6.60			9-27-2024		625,000		628,519
Ultra Resources Incorporated (3 Month LIBOR +3.00%) ±<		5.47			4-12-2024		2,000,000		1,869,280
									3,502,347
Financials: 3.03%
Capital Markets: 0.61%
EIG Management Company LLC (3 Month LIBOR +3.75%) ±‡		6.06			2-22-2025		124,375		124,375
Focus Financial Partners LLC (1 Month LIBOR +2.50%) ±		4.80			7-3-2024		49,875		49,906
Global Business Travel Holdigs Limited (3 Month LIBOR +2.50%) ±‡		4.84			7-20-2025		150,000		150,563
Neptune Finco Corporation (1 Month LIBOR +2.25%) ±		4.53			7-17-2025		774,218		771,733
Russell Investments US Institutional Holdco Incorporated (1 Month LIBOR +3.25%) ±‡		5.55			6-1-2023		591,635		592,007
Tortoise Borrower LLC (1 Month LIBOR +4.00%) ±‡		5.80			1-31-2025		200,000		200,750
Victory Capital Holdings Incorporated (3 Month LIBOR +2.75%) ±		5.14			2-12-2025		632,828		633,619
									2,522,953
Diversified Consumer Services: 0.01%
TransUnion (1 Month LIBOR +2.00%) ±		4.30			6-19-2025		49,875		49,741
Diversified Financial Services: 1.23%
LPL Holdings Incorporated (1 Month LIBOR +2.25%) ±‡		4.53			9-23-2024		1,066,329		1,067,001
Nielsen Finance LLC (1 Month LIBOR +2.00%) ±		4.28			10-4-2023		465,536		463,012
Resolute Investment Managers Incorporated (3 Month LIBOR +3.25%) ±‡		5.64			4-30-2022		2,433,300		2,443,958
Resolute Investment Managers Incorporated (3 Month LIBOR +7.50%) ±‡		10.03			4-30-2023		1,090,000		1,098,175
									5,072,146
Insurance: 1.18%
Alliant Holdings Intermediate LLC (1 Month LIBOR +3.00%) ±		5.28			5-9-2025		1,378,809		1,376,892
AmWINS Group Incorporated (1 Month LIBOR +2.75%) ±		5.05			1-25-2024		888,398		889,286
Hub International Limited (2 Month LIBOR +3.00%) ±		5.49			4-25-2025		1,246,875		1,242,586
Solera Holdings Incorporated (1 Month LIBOR +2.75%) ±		5.05			3-3-2023		1,082,982		1,080,783
USI Incorporated (3 Month LIBOR +3.00%) ±		5.39			5-16-2024		297,373		295,515
									4,885,062
Health Care: 2.40%
Health Care Equipment & Supplies: 0.45%
DJO Finance LLC (1 Month LIBOR +3.25%) ±		5.60			6-8-2020		551,475		550,212
Kinetic Concepts Incorporated (3 Month LIBOR +3.25%) ±		5.64			2-2-2024		1,319,536		1,323,112
									1,873,324
Health Care Providers & Services: 0.63%
CHS Incorporated (3 Month LIBOR +3.25%) ±		5.56			1-27-2021		516,901		505,390
MPH Acquisition Holdings LLC (3 Month LIBOR +2.75%) ±		5.14			6-7-2023		445,389		443,906
Press Ganey Holdings Incorporated (1 Month LIBOR +6.50%) ±‡		8.80			10-21-2024		516,856		519,441
Surgery Center Holdings Incorporated (3 Month LIBOR +3.25%) ±		5.57			9-2-2024		522,190		520,754
Team Health Holdings Incorporated (1 Month LIBOR +2.75%) ±‡		5.05			2-6-2024		441,765		416,916
Vizient Incorporated (1 Month LIBOR +2.75%) ±		5.05			2-13-2023		192,929		193,571
									2,599,978

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Health Care Technology: 0.68%
Change Healthcare Holdings Incorporated (1 Month LIBOR +2.75%) ±		5.05	%		3-1-2024	$	652,311	$	651,254
Emerald Bidco Incorporated (1 Month LIBOR +2.75%) ±		5.05			10-23-2023		2,176,890		2,177,564
									2,828,818
Life Sciences Tools & Services: 0.09%
Syneos Health Incorporated (1 Month LIBOR +2.00%) ±		4.30			8-1-2024		371,391		370,154
Pharmaceuticals: 0.55%
Endo Finance LLC (1 Month LIBOR +4.25%) ±		6.56			4-29-2024		292,979		294,016
Valeant Pharmaceuticals International Incorporated (1 Month LIBOR +3.00%) ±		5.27			6-2-2025		1,966,530		1,966,077
									2,260,093
Industrials: 3.03%
Aerospace & Defense: 0.59%
TransDigm Incorporated (1 Month LIBOR +2.50%) ±		4.80			8-22-2024		2,442,747		2,429,971
Commercial Services & Supplies: 1.25%
Advanced Disposal Services Incorporated (1 Month LIBOR +2.25%) ±		4.46			11-10-2023		1,159,660		1,158,941
Advantage Sales & Marketing LLC (1 Month LIBOR +3.25%) ±		5.55			7-25-2021		223,304		202,463
Advantage Sales & Marketing LLC (1 Month LIBOR +6.50%) ±		8.80			7-25-2022		1,250,000		1,041,663
KAR Auction Services Incorporated (3 Month LIBOR +2.50%) ±		4.94			3-9-2023		153,611		153,676
Sedgwick Claims Management Services Incorporated (1 Month LIBOR +2.75%) ±		5.05			3-1-2021		516,134		515,814
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +3.25%) ±‡		5.55			5-14-2022		168,769		168,558
WASH Multifamily Laundry Systems LLC (1 Month LIBOR +3.25%) ±‡		5.55			5-14-2022		963,681		962,477
Wrangler Buyer Corporation (1 Month LIBOR +2.75%) ±		5.01			9-27-2024		968,061		968,235
									5,171,827
Communications Equipment: 0.26%
Charter Communications Operating LLC (1 Month LIBOR +2.00%) ±		4.31			4-30-2025		1,091,750		1,091,619
Electrical Equipment: 0.13%
Generac Power Systems Incorporated (1 Month LIBOR +1.75%) ±‡		4.01			5-31-2023		425,780		425,248
Resideo Funding Incorporated (3 Month LIBOR +2.00%) ±‡		4.49			10-24-2025		100,000		100,188
									525,436
Machinery: 0.61%
Columbus McKinnon Corporation (3 Month LIBOR +2.50%) ±‡		4.89			1-31-2024		933,101		931,935
Gates Global LLC (1 Month LIBOR +2.75%) ±		5.05			4-1-2024		603,147		603,418
Harsco Corporation (1 Month LIBOR +2.25%) ±		4.56			12-6-2024		99,750		99,938
RBS Global Incorporated (1 Month LIBOR +2.00%) ±		4.29			8-21-2024		750,000		750,563
Restaurant Technologies Incorporated (3 Month LIBOR +3.25%) ±‡		5.65			10-1-2025		125,000		125,313
									2,511,167
Professional Services: 0.14%
TransUnion (1 Month LIBOR +2.00%) ±		4.30			4-10-2023		596,985		595,558
Trading Companies & Distributors: 0.05%
Avolon TLB Borrower 1 LLC (1 Month LIBOR +2.00%) ±		4.28			1-15-2025		199,500		198,868

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

26 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 2.57%
Communications Equipment: 0.07%
Ciena Corporation (1 Month LIBOR +2.00%) ±‡		4.28	%		9-26-2025	$	275,000	$	275,173
Electronic Equipment, Instruments & Components: 0.55%
Dell Incorporated (1 Month LIBOR +2.00%) ±		4.31			9-7-2023		2,249,487		2,246,113
IT Services: 1.76%
Ancestry.com Incorporated (1 Month LIBOR +3.25%) ±		5.55			10-19-2023		5,892,103		5,906,834
Applied Systems Incorporated (3 Month LIBOR +3.00%) ±		5.39			9-19-2024		321,750		322,757
Infor US Incorporated (3 Month LIBOR +2.75%) ±		5.14			2-1-2022		774,947		771,654
Sophia Holding Finance LP (3 Month LIBOR +3.25%) ±		5.64			9-30-2022		143,552		143,731
Zayo Group LLC (1 Month LIBOR +2.25%) ±		4.55			1-19-2024		132,244		132,307
									7,277,283
Semiconductors & Semiconductor Equipment: 0.08%
Micron Technology Incorporated (1 Month LIBOR +1.75%) ±		4.06			4-26-2022		342,125		342,053
Software: 0.11%
SS&C Technologies Incorporated (1 Month LIBOR +2.25%) ±		4.55			4-16-2025		470,971		468,353
Materials: 0.95%
Containers & Packaging: 0.95%
Berry Plastics Corporation (1 Month LIBOR +2.00%) ±		4.28			10-1-2022		387,258		386,967
Flex Acquisition Company Incorporated (1 Month LIBOR +3.25%) ±		5.51			6-29-2025		748,125		748,529
Reynolds Group Holdings Incorporated (1 Month LIBOR +2.75%) ±		5.05			2-5-2023		2,450,109		2,450,109
RING Container Technologies (1 Month LIBOR +2.75%) ±		5.05			10-31-2024		347,375		346,833
									3,932,438
Real Estate: 1.36%
Equity REITs: 0.84%
ESH Hospitality Incorporated (1 Month LIBOR +2.00%) ±		4.30			8-30-2023		1,214,644		1,212,372
MGM Growth Properties LLC (1 Month LIBOR +2.00%) ±		4.30			3-21-2025		316,750		315,619
The Geo Group Incorporated (1 Month LIBOR +2.00%) ±		4.31			3-22-2024		1,951,287		1,942,760
									3,470,751
Real Estate Management & Development: 0.52%
Capital Automotive LP (1 Month LIBOR +2.50%) ±		4.81			3-24-2024		1,350,251		1,349,576
Capital Automotive LP (1 Month LIBOR +6.00%) ±		8.30			3-24-2025		767,818		778,376
									2,127,952
Utilities: 0.38%
Independent Power & Renewable Electricity Producers: 0.38%
TerraForm Power Operating LLC (1 Month LIBOR +2.00%) ±		4.30			11-8-2022		669,938		669,938
Vistra Energy Corporation (1 Month LIBOR +2.25%) ±		4.55			12-14-2023		887,163		887,500
									1,557,438
Total Loans (Cost $89,362,046)									88,230,398

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 27

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities: 4.12%
American Money Management Corporation Series 2015-16A Class AR (3 Month LIBOR +1.26%) 144A±		3.70	%		4-14-2029	$	500,000	$	500,290
Argent Securities Incorporated Series 2004-W5 Class AV3B (1 Month LIBOR +0.90%) ±		3.18			4-25-2034		49,233		49,238
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±±		5.66			7-10-2044		547,504		223,946
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±±		5.48			1-15-2049		140,618		141,018
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50			9-25-2035		189,846		199,383
Banc of America Mortgage Securities Series 2003 Class 1A1 ±±		4.08			4-25-2033		259,673		247,747
Benchmark Mortgage Trust Series 2018-B1 Class A2		3.57			1-15-2051		195,000		194,524
Bluemountain CLO Limited Series 2015-2A Class A1R (3 Month LIBOR +0.93%) 144A±		3.37			7-18-2027		500,000		498,875
Centex Home Equity Series 2002-A Class AF6		5.54			1-25-2032		24,659		24,862
Centex Home Equity Series 2004-B Class AF6		4.69			3-25-2034		88,872		90,939
CIFC Funding Limited Series 2012-2RA Class A1 (3 Month LIBOR +0.80%) 144A±		3.27			1-20-2028		485,000		481,590
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±±		4.87			9-10-2045		1,000,000		1,007,181
Citigroup Commercial Mortgage Trust Series 2017-1500 Class A (1 Month LIBOR +0.85%) 144A±		3.13			7-15-2032		750,000		749,708
Citigroup Commercial Mortgage Trust Series 2017-MDRB Class A (1 Month LIBOR +1.10%) 144A±		3.38			7-15-2030		647,950		645,248
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 (1 Month LIBOR +0.76%) ±		3.04			12-25-2033		16,497		16,446
Commercial Mortgage Trust Series 2012-CR2 Class C ±±		4.83			8-15-2045		1,000,000		999,116
Commercial Mortgage Trust Series 2012-LC4 Class A4		3.29			12-10-2044		202,534		201,029
Commercial Mortgage Trust Series 2012-LC4 Class AM		4.06			12-10-2044		500,000		504,089
Commercial Mortgage Trust Series 2012-LC4 Class C ±±		5.60			12-10-2044		500,000		494,415
Countrywide Home Loans Series 2003-48 Class 2A2 ±±		4.55			10-25-2033		51,277		52,023
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±±		3.72			9-25-2032		422,045		410,653
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±±		4.18			6-25-2033		79,803		80,161
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±±		4.21			3-25-2033		19,750		19,669
Crown Point Limited Series 2015-3A Class A1AR (3 Month LIBOR +0.91%) 144A±		3.35			12-31-2027		500,000		499,995
Global Mortgage Securitization Limited Series 2004-A Class A2 (1 Month LIBOR +0.32%) 144A±		2.60			11-25-2032		80,748		76,704
GS Mortgage Securities Trust Series 2010-C1 Class X 144A±±(c)		1.36			8-10-2043		5,025,459		94,548
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±±(c)		2.21			5-10-2045		3,249,141		146,496
GSAA Home Equity Trust Series 2004-5 Class AF5		4.41			6-25-2034		1,439		1,437
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 (1 Month LIBOR +0.65%) ±		2.93			4-25-2035		2,714		2,717
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 (1 Month LIBOR +0.30%) 144A±		2.58			3-25-2035		50,273		49,970
JPMorgan Chase Commercial Mortgage Securities Trust Series 2013-C17 Class B ±±		4.89			1-15-2047		50,000		51,775
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AM ±±		5.47			6-12-2047		245,076		244,773
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL (1 Month LIBOR +0.17%) ±		2.30			6-12-2047		210,066		206,311
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±±		5.46			1-15-2049		81,112		81,151
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±±		4.45			7-25-2034		32,863		33,375
JPMorgan Mortgage Trust Series 2004-A3 Class 3A3 ±±		4.03			7-25-2034		40,258		39,699
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±±		4.42			6-25-2035		154,966		158,451
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±±		6.00			2-27-2037		2,136		2,132
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±±		3.63			12-25-2033		271,762		273,131
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±±		3.72			1-25-2034		8,148		8,087
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±±		4.45			11-21-2034		11,842		12,120

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

28 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50	%		1-25-2020	$	6,790	$	6,865
MASTR Specialized Loan Trust Series 2005-3 Class A1 (1 Month LIBOR +0.36%) 144A±		2.64			11-25-2035		103,915		103,702
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3		5.25			8-25-2036		1,377		1,375
Mid-State Trust Series 11 Class A1		4.86			7-15-2038		181,242		190,520
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 (6 Month LIBOR +0.68%) ±		3.18			1-25-2029		67,086		67,023
Montana Higher Education Student Assistance Corporation Series 2012-1 Class A2 (1 Month LIBOR +1.00%) ±		3.28			5-20-2030		476,875		480,832
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA 144A±±(c)		1.47			8-15-2045		4,100,717		175,898
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C11 Class A4 ±±		4.16			8-15-2046		569,000		581,259
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 (1 Month LIBOR +1.05%) ±		3.33			12-27-2033		374,338		374,709
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±±		5.42			3-15-2045		900,000		911,954
Morgan Stanley Mortgage Loan Trust Series 2004-4 Class 2A ±±		6.37			9-25-2034		36,005		39,256
New Century Home Equity Loan Trust Series 2004-3 Class M1 (1 Month LIBOR +0.93%) ±		3.21			11-25-2034		1,165,049		1,168,123
Octagon Investment Partners Series 2015-1A Class A1R (3 Month LIBOR +0.90%) 144A±		3.21			5-21-2027		700,000		699,768
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±±		3.85			5-25-2035		15,123		14,866
RAIT Trust Series 2017-FL8 Class A (1 Month LIBOR +0.85%) 144A±		3.13			12-15-2037		266,542		266,402
Sequoia Mortgage Trust Series 2003-1 Class 1A (1 Month LIBOR +0.76%) ±		3.04			4-20-2033		10,221		10,030
SoFi Professional Loan Program LLC Series 2017-A Class A2B 144A		2.40			3-26-2040		750,000		724,740
Stonemont Portfolio Trust Series 2017 Class A (1 Month LIBOR +0.85%) 144A±		3.13			8-20-2030		462,257		461,972
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±±		4.32			3-25-2034		35,762		35,291
Terwin Mortgage Trust Series 2003-6HE Class A3 (1 Month LIBOR +1.14%) ±		3.42			11-25-2033		159,555		157,091
Vendee Mortgage Trust Series 2003-2 Class IO ±±(c)		0.68			5-15-2033		3,405,567		108,531
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50			7-25-2034		109,482		117,151
Wind River CLO Limited Series 2013-2A Class BR (3 Month LIBOR +1.60%) 144A±		4.04			10-18-2030		500,000		497,825
Total Non-Agency Mortgage-Backed Securities (Cost $17,292,766)									17,010,205
				Expiration date		Shares
Rights: 0.06%
Utilities: 0.06%
Independent Power & Renewable Electricity Producers: 0.06%
Vistra Energy Corporation †					12-31-2046		327,375		238,984
Total Rights (Cost $340,913)									238,984
				Maturity date		Principal
Yankee Corporate Bonds and Notes: 9.23%
Communication Services: 0.32%
Media: 0.18%
WPP Finance 2010		3.63			9-7-2022	$	750,000		733,337
Wireless Telecommunication Services: 0.14%
Globo Communicacoes Participacoes SA 144A		4.88			4-11-2022		595,000		589,794
Consumer Staples: 0.36%
Beverages: 0.18%
Pernod Ricard SA 144A		4.45			1-15-2022		760,000		774,236

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 29

Security name	Interest rate			Maturity date		Principal		Value
Tobacco: 0.18%
BAT International Finance plc 144A		3.25	%		6-7-2022	$	750,000	$	733,633
Energy: 1.93%
Energy Equipment & Services: 0.41%
Ensco plc		5.75			10-1-2044		2,320,000		1,624,000
Trinidad Drilling Limited 144A		6.63			2-15-2025		75,000		75,000
									1,699,000
Oil, Gas & Consumable Fuels: 1.52%
Baytex Energy Corporation 144A		5.13			6-1-2021		2,125,000		2,066,563
Baytex Energy Corporation 144A		5.63			6-1-2024		900,000		807,750
Griffin Coal Mining Company Limited 144A(a)†		9.50			12-1-2016		1,122,015		0
Griffin Coal Mining Company Limited (a)†		9.50			12-1-2016		91,731		0
Rockpoint Gas Storage 144A		7.00			3-31-2023		1,375,000		1,368,125
Teekay Corporation		8.50			1-15-2020		2,025,000		2,055,375
									6,297,813
Financials: 2.83%
Banks: 0.97%
ABN AMRO Bank NV 144A		4.80			4-18-2026		750,000		746,445
Banco del Estado de Chile 144A		3.88			2-8-2022		650,000		645,586
Corporación Andina de Fomento		4.38			6-15-2022		958,000		980,772
Intelsat Connect Finance Company 144A		9.50			2-15-2023		400,000		384,500
Nielsen Holding and Finance BV 144A		5.00			2-1-2025		875,000		852,031
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		415,000		417,075
Preferred Term Securities XII Limited (a)†		3.03			12-24-2033		635,000		0
									4,026,409
Diversified Financial Services: 1.70%
Intelsat Jackson Holdings SA		5.50			8-1-2023		5,275,000		4,721,125
Intelsat Jackson Holdings SA 144A		8.50			10-15-2024		1,700,000		1,670,250
Tyco Electronics Group SA		3.50			2-3-2022		625,000		623,614
									7,014,989
Insurance: 0.16%
Sompo International Holdings Limited		7.00			7-15-2034		575,000		657,774
Health Care: 1.51%
Pharmaceuticals: 1.51%
Bausch Health Companies Incorporated 144A		5.50			3-1-2023		2,200,000		2,084,500
Bausch Health Companies Incorporated 144A		5.50			11-1-2025		375,000		367,500
Bausch Health Companies Incorporated 144A		5.88			5-15-2023		770,000		736,313
Bausch Health Companies Incorporated 144A		6.13			4-15-2025		1,940,000		1,784,218
Bausch Health Companies Incorporated 144A		6.50			3-15-2022		325,000		336,375
Bausch Health Companies Incorporated 144A		7.00			3-15-2024		575,000		602,134
Bausch Health Companies Incorporated 144A		7.50			7-15-2021		9,000		9,135
Bausch Health Companies Incorporated 144A		8.50			1-31-2027		300,000		305,250
									6,225,425

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

30 Wells Fargo Multi-Sector Income Fund Portfolio of investments—October 31, 2018

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 1.24%
Aerospace & Defense: 0.08%
Avolon Holdings Funding Limited 144A		5.13	%		10-1-2023	$	350,000	$	343,438
Commercial Services & Supplies: 0.56%
Ritchie Brothers Auctioneers Incorporated 144A		5.38			1-15-2025		2,350,000		2,314,751
Machinery: 0.26%
Sensata Technologies BV 144A		5.00			10-1-2025		260,000		250,900
Sensata Technologies BV 144A		6.25			2-15-2026		800,000		814,000
									1,064,900
Professional Services: 0.15%
IHS Markit Limited 144A		4.75			2-15-2025		650,000		643,487
Road & Rail: 0.19%
Canadian Pacific Railway Company		4.50			1-15-2022		750,000		770,806
Materials: 0.88%
Containers & Packaging: 0.51%
Ardagh Packaging Finance plc 144A		4.25			9-15-2022		375,000		363,750
Ardagh Packaging Finance plc 144A		7.25			5-15-2024		725,000		728,625
OI European Group BV 144A		4.00			3-15-2023		1,100,000		1,029,875
									2,122,250
Metals & Mining: 0.37%
Glencore Finance Canada Limited 144A		4.25			10-25-2022		750,000		751,695
Vale Overseas Limited		4.38			1-11-2022		750,000		754,200
									1,505,895
Utilities: 0.16%
Electric Utilities: 0.16%
Comision Federal de Electricidad 144A		4.88			5-26-2021		650,000		651,307
Total Yankee Corporate Bonds and Notes (Cost $39,667,426)									38,169,244
	Yield					Shares
Short-Term Investments: 2.03%
Investment Companies: 2.03%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		2.07					8,394,594		8,394,594
Total Short-Term Investments (Cost $8,394,594)									8,394,594

Total investments in securities (Cost $618,207,566)	145.07	%		599,592,258
Other assets and liabilities, net	(45.07	)		(186,275,276	)
Total net assets	100.00	%	$	413,316,982

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

Portfolio of investments—October 31, 2018 Wells Fargo Multi-Sector Income Fund 31

± 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.

¥ 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.

† Non-income-earning security

‡ Security is valued using significant unobservable inputs.

< All or a portion of the position represents an unfunded loan commitment. The rate represents current interest rate if the loan is partially funded.

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

(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 and/or unfunded loans.

Abbreviations:

AUD Australian dollar

BRL Brazilian real

CLO Collateralized loan obligation

COP Colombian peso

FHLMC Federal Home Loan Mortgage Corporation

FNMA Federal National Mortgage Association

GBP Great British pound

GNMA Government National Mortgage Association

IDR Indonesian rupiah

INR Indian rupee

LIBOR London Interbank Offered Rate

MXN Mexican peso

MYR Malaysian ringgit

NZD New Zealand dollar

PEN Peruvian sol

REIT Real estate investment trust

ZAR South African rand

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		25,651,250		131,908,826		149,165,482		8,394,594	$	0	$	0	$	239,076	$	8,394,594		2.03	%

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

32 Wells Fargo Multi-Sector Income Fund Statement of assets and liabilities—October 31, 2018

Assets
Investments in unaffiliated securities, at value (cost $609,812,972)	$	591,197,664
Investments in affiliated securities, at value (cost $8,394,594)		8,394,594
Cash		23,219
Foreign currency, at value (cost $34,408)		34,057
Receivable for investments sold		848,052
Principal paydown receivable		41,828
Receivable for interest		8,009,737
Prepaid expenses and other assets		14,614
Total assets		608,563,765
Liabilities
Secured borrowing payable		187,000,000
Dividends payable		3,363,570
Payable for investments purchased		2,879,559
Payable for Fund shares repurchased		355,871
Advisory fee payable		284,614
Administration fee payable		25,874
Trustees’ fees and expenses payable		839
Accrued expenses and other liabilities		1,336,456
Total liabilities		195,246,783
Total net assets	$	413,316,982
NET ASSETS CONSIST OF
Paid-in capital	$	465,152,172
Total distributable loss		(51,835,190	)
Total net assets	$	413,316,982
NET ASSET VALUE PER SHARE
Based on $413,316,982 divided by 31,542,501 shares issued and outstanding (100,000,000 shares authorized)		$13.10

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

Statement of operations—year ended October 31, 2018 Wells Fargo Multi-Sector Income Fund 33

Investment income
Interest (net of foreign interest withholding taxes of $398,685)	$	37,771,287
Income from affiliated securities		239,076
Dividends		35
Total investment income		38,010,398
Expenses
Advisory fee		3,561,241
Administration fee		323,749
Custody and accounting fees		283,924
Professional fees		467,175
Shareholder report expenses		157,776
Trustees’ fees and expenses		26,497
Transfer agent fees		40,515
Interest expense		4,949,712
Other fees and expenses		29,849
Total expenses		9,840,438
Net investment income		28,169,960
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(12,224,596	)
Foreign currency transactions		(772,768	)
Net realized losses on investments		(12,997,364	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(15,415,919	)
Foreign currency transactions		7,368
Net change in unrealized gains (losses) on investments		(15,408,551	)
Net realized and unrealized gains (losses) on investments		(28,405,915	)
Net decrease in net assets resulting from operations	$	(235,955	)

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

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

	Year ended October 31, 2018			Year ended October 31, 20171
Operations
Net investment income	$	28,169,960		$	36,933,415
Net realized losses on investments		(12,997,364	)		(21,012,373	)
Net change in unrealized gains (losses) on investments		(15,408,551	)		27,791,101
Net increase (decrease) in net assets resulting from operations		(235,955	)		43,712,143
Distributions to shareholders from
Net investment income and net realized gains		(15,295,803	)		(26,702,083	)
Tax basis return of capital		(27,375,294	)		(19,927,206	)
Total distributions to shareholders		(42,671,097	)		(46,629,289	)
Capital share transactions
Cost of shares repurchased		(43,599,996	)		(88,098,943	)
Total decrease in net assets		(86,507,048	)		(91,016,089	)
Net assets
Beginning of period		499,824,030			590,840,119
End of period	$	413,316,982		$	499,824,030

¹  Effective for all filings after November 4, 2018, the SEC prospectively eliminated the requirement to parenthetically disclose undistributed net investment income at the end of the period and permitted the aggregation of distributions, with the exception of tax basis returns of capital. Overdistributed net investment income at October 31, 2017 was $3,872,518. The disaggregated distributions information for the year ended October 31, 2017 is included in Note 8, Distributions to Shareholders, in the notes to the financial statements.

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

Statement of cash flows—year ended October 31, 2018 Wells Fargo Multi-Sector Income Fund 35

Cash flows from operating activities:
Net decrease in net assets resulting from operations	$	(235,955	)
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:
Purchase of long-term securities		(189,460,761	)
Proceeds from the sale of long-term securities		223,010,560
Paydowns		4,932,788
Amortization		(603,368	)
Purchases and sales of short-term securities, net		17,256,656
Decrease in receivable for investments sold		881,628
Decrease in principal paydown receivable		11,562
Decrease in receivable for interest		517,400
Decrease in prepaid expenses and other assets		108
Increase in payable for investments purchased		940,675
Decrease in advisory fee payable		(37,754	)
Decrease in administration fee payable		(3,432	)
Decrease in trustees’ fees and expenses payable		(1,915	)
Increase in accrued expenses and other liabilities		746,205
Litigation payments received		36,851
Net realized losses on investments		12,224,596
Net change in unrealized gains (losses) on investments		15,408,551
Net cash provided by operating activities		85,624,395
Cash flows from financing activities:
Cost of shares repurchased		(43,244,125	)
Cash distributions paid		(43,066,688	)
Net cash used in financing activities		(86,310,813	)
Net decrease in cash		(686,418	)
Cash (including foreign currency):
Beginning of period	$	743,694
End of period	$	57,276
Supplemental cash disclosure
Cash paid for interest	$	4,865,382

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

36 Wells Fargo Multi-Sector Income Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended October 31
	2018			2017			2016			2015			2014
Net asset value, beginning of period		$14.31			$14.35			$14.06			$16.10			$16.40
Net investment income		0.85	1		0.97	1		1.08			1.10	1		1.14	1
Net realized and unrealized gains (losses) on investments		(0.92	)		0.18			0.33			(1.98	)		(0.24	)
Total from investment operations		(0.07	)		1.15			1.41			(0.88	)		0.90
Distributions to shareholders from
Net investment income		(0.46	)		(0.70	)		(0.97	)		(0.87	)		(0.91	)
Tax basis return of capital		(0.83	)		(0.53	)		(0.17	)		(0.29	)		(0.29	)
Total distributions to shareholders		(1.29	)		(1.23	)		(1.14	)		(1.16	)		(1.20	)
Anti-dilutive effect of shares repurchased		0.15			0.04			0.02			0.00			0.00
Net asset value, end of period		$13.10			$14.31			$14.35			$14.06			$16.10
Market value, end of period		$11.57			$13.05			$12.66			$12.02			$14.19
Total return based on market value2		(1.91	)%		13.07	%		15.66	%		(7.34	)%		6.55	%
Ratios to average net assets (annualized)
Expenses3		2.14	%		1.68	%		1.39	%		1.24	%		1.21	%
Net investment income3		6.12	%		6.73	%		7.94	%		7.33	%		6.95	%
Supplemental data
Portfolio turnover rate		25	%		38	%		29	%		31	%		41	%
Net assets, end of period (000s omitted)		$413,317			$499,824			$590,840			$591,226			$677,004
Borrowings outstanding, end of period (000s omitted)		$187,000			$187,000			$220,000			$230,000			$230,000
Asset coverage per $1,000 of borrowing, end of period		$3,210			$3,673			$3,686			$3,570			$3,944

¹  Calculated based upon average shares outstanding

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

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

Year ended October 31, 2018	1.07	%
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	%

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

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

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 (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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) 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 Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee. 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 Wells Fargo Asset Management Pricing Committee which may include items for ratification.

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 Wells Fargo Asset Management Pricing Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates 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.

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.

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

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. 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. The 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 at year end.

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, 2018, the aggregate cost of all investments for federal income tax purposes was $621,575,109 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	12,364,169
Gross unrealized losses		(34,347,020	)
Net unrealized losses	$	(21,982,851	)

As of October 31, 2018, the Fund had capital loss carryforwards which consist of $11,604,833 in short-term capital losses and $14,769,863 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

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

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.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of October 31, 2018:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	7,140,147	$	0	$	7,140,147
Asset-backed securities		0		3,505,043		0		3,505,043
Common stocks
Materials		803		0		0		803
Corporate bonds and notes		0		331,312,248		0		331,312,248
Foreign corporate bonds and notes		0		19,373,032		0		19,373,032
Foreign government bonds		0		86,217,560		0		86,217,560
Loans		0		73,616,607		14,613,791		88,230,398
Non-agency mortgage-backed securities		0		17,010,205		0		17,010,205
Rights
Utilities		0		238,984		0		238,984
Yankee corporate bonds and notes		0		38,169,244		0		38,169,244
Short-term investments
Investment companies		8,394,594		0		0		8,394,594
Total assets	$	8,395,397	$	576,583,070	$	14,613,791	$	599,592,258

Additional sector, industry or geographic detail is included in the Portfolio of Investments.

At October 31, 2018, the Fund did not have any transfers into/out of Level 3.

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, 2017	$	700,000		$	20,926,735		$	7,293		$	21,634,028
Accrued discounts (premiums)		0			17,784			0			17,784
Realized gains (losses)		0			(48,925	)		0			(48,925	)
Change in unrealized gains (losses)		(232	)		(452,502	)		602,164			149,430
Purchases		0			4,022,507			0			4,022,507
Sales		0			(9,161,978	)		(609,457	)		(9,771,435	)
Transfers into Level 3		0			4,824,575			0			4,824,575
Transfers out of Level 3		(699,768	)		(5,514,405	)		0			(6,214,173	)
Balance as of October 31, 2018	$	0		$	14,613,791		$	0		$	14,613,791
Change in unrealized gains (losses) relating to securities still held at October 31, 2018	$	0		$	(17,732	)	$	0		$	(17,732	)

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

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

4. TRANSACTIONS WITH AFFILIATES

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. Wells Fargo Asset Management (International), LLC (formerly, 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.

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 $11,423,494 in interfund purchases during the year ended October 31, 2018.

5. CAPITAL SHARE TRANSACTIONS

The Fund has authorized capital of 100,000,000 shares with no par value. For the year ended October 31, 2018 and the year ended October 31, 2017, the Fund did not issue any shares.

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 had delegated to Funds Management 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. During the year ended October 31, 2018, the Fund purchased 3,397,183 of its shares on

the open market at a total cost of $43,599,996 (weighted average price per share of $12.83). The weighted average discount of these repurchased shares was 12.14%.

6. BORROWINGS

The Fund has borrowed $187,000,000 through a revolving credit facility administered by a major financial institution (the “Facility”). The Facility has a commitment amount of $230,000,000 with no specific contract expiration date but the Facility can be terminated upon 180 days’ notice. The Fund is charged interest at London Interbank Offered Rate (LIBOR) plus 0.70% and a commitment fee of 0.30% of the average daily unutilized amount of the commitment which may be waived if the amount drawn on the Facility is over 75% of the committed amount. 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, 2018, the Fund had average borrowings outstanding of $187,000,000 at an average interest rate of 2.65% and paid interest in the amount of $4,949,712, which represents 1.07% of its average daily net assets. Based on the nature of the terms of the Facility and comparative market rates, the carrying amount of the borrowings at October 31, 2018 approximates its fair value. If measured at fair value, the borrowings would be categorized as a Level 2 under the fair value hierarchy.

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

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, 2018 were $156,261,733 and $165,710,009, respectively.

As of October 31, 2018, the Fund had unfunded term loan commitments of $2,833,116.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended October 31, 2018 and October 31, 2017 were as follows:

	Year ended October 31
	2018		2017
Ordinary income	$	15,295,803	$	26,702,083
Tax basis return of capital		27,375,294		19,927,206

As of October 31, 2018 the components of distributable earnings on a tax basis were as follows:

Unrealized losses	Capital loss carryforward
$(22,043,108)	$(26,374,696)

Effective for all filings after November 4, 2018, the Securities and Exchange Commission eliminated the requirement to separately state the components of distributions to shareholders. Distributions to shareholders for the year ended October 31, 2017 consisted of $26,702,083 from net investment income.

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 PRONOUNCEMENTS

In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management has adopted the removal and modification of disclosures early, as permitted, and will adopt the additional new disclosures at the effective date.

In March 2017, FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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 presentation of amounts in the financial statements. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017.

In August 2016, FASB issued 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

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

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 presentation of amounts 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.

11. SUBSEQUENT DISTRIBUTIONS

The Fund declared the following distributions to common shareholders:

Declaration date	Record date	Payable date	Per share amount
October 26, 2018	November 14, 2018	December 3, 2018	$0.10489
November 9, 2018	December 17, 2018	January 2, 2019	0.10420

These distributions are not reflected in the accompanying financial statements.

Report of independent registered public accounting firm Wells Fargo Multi-Sector Income Fund 43

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

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Wells Fargo Multi-Sector Income Fund (the “Fund”), including the portfolio of investments, as of October 31, 2018, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2018, 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.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of October 31, 2018, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have not been able to determine the specific year that we began serving as the auditor of one or more Wells Fargo Funds investment companies, however we are aware that we have served as the auditor of one or more Wells Fargo Funds investment companies since at least 1955.

Boston, Massachusetts

December 21, 2018

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

TAX INFORMATION

For the fiscal year ended October 31, 2018, $15,691,394 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

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.

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

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.2 (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 (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation
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.	N/A
Olivia S. Mitchell (Born 1953)	Trustee, since 2010, Nominating and Governance Committee Chairman, since 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.	N/A
Class II - Non-Interested Trustees to serve until 2021 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 Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. Mr. Ebsworth is a CFA® charterholder.	N/A
Jane A. Freeman (Born 1953)	Trustee, since 2015; Chair Liaison, since 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 The Ruth Bancroft Garden (non-profit organization). She is also an inactive Chartered Financial Analyst.	N/A

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

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer	Current other public company or investment company directorships
Judith M. Johnson2 (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.	N/A
Class III - Non-Interested Trustees to serve until 2019 Annual Meeting of Shareholders
Timothy J. Penny (Born 1951)	Trustee, since 2010; Chairman, since 2018: Vice Chairman, from 2017 to 2018	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	N/A
James G. Polisson (Born 1959)	Trustee, since 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. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. 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.	N/A
Michael S. Scofield3 (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 Fund 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.	N/A
Pamela Wheelock (Born 1959)	Trustee, since 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, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, 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 the Board Chair of the Minnesota Wild Foundation since 2010.	N/A

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

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.
Alexander Kymn (Born 1973)	Secretary, since 2018; Chief Legal Officer, since 2018	Senior Company Counsel of Wells Fargo Bank, N.A. since 2018 (previously Senior Counsel from 2007 to 2018). Vice President of Wells Fargo Funds Management, LLC from 2008 to 2014.
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.

²  Mr. Harris will replace Ms. Johnson as the Chairman of the Audit Committee effective January 1, 2019.

³  Mr. Scofield is expected to retire on December 31, 2018.

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

BOARD CONSIDERATION OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Multi-Sector Income Fund

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 22-23, 2018 (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 Wells Fargo Asset Management (International), LLC (“WFAM International”), an affiliate of Funds Management. The investment advisory agreement with Funds Management and the investment sub-advisory agreements with WellsCap and WFAM International (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 2018, 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 investment 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 2018. 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 investment 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 Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Advisers are a part, a summary of investments made in the business of WFAM, 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 considered the additional services provided to the Fund due to the fact that the Fund is a closed-end fund, including, but not limited to, monitoring the Fund’s discount. 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.

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

Fund investment performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2017. The Board considered these results in comparison to the performance of funds in a custom peer group that included funds 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 investment performance of the Fund was higher than or in range of the average investment performance of the Custom Peer Group for all periods under review except the five-year period. The Board also noted that the investment performance of the Fund was higher than its benchmark, the ERC 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 or in range of the median net operating expense ratios of the Expense Groups.

The Board took into account the Fund’s investment 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 both WFAM and Wells Fargo & Co. (“Wells Fargo”) as a whole, from providing services to the Fund and the fund family as a whole. The Board noted 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 and recent enhancements made to the methodology. 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, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

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

Economies of scale

The Board considered the extent to which Funds Management may experience economies of scale in the provision of management services, and the extent to which scale benefits, if any, would be shared with shareholders. The Board noted that, as is typical of closed-end funds, there are no breakpoints in 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, as well as investments in the business to enhance services available to Fund shareholders, 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.

Automatic dividend reinvestment plan Wells Fargo Multi-Sector Income Fund 51

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.

This page is intentionally left blank.

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

© 2018 Wells Fargo Funds Management, LLC. All rights reserved.

318241 12-18 AMSI/AR143 10-18

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		Fiscal
	year ended		year ended
	October 31, 2018		October 31, 2017
Audit fees	$	54,385	$	54,322
Audit-related fees		—		—
Tax fees (1)		4,245		4,150
All other fees		—		—
	$	58,630	$	58,472

(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 a 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    

2

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

A Portfolio of Investments for Wells Fargo Multi-Sector Income Fund is included as part of the report to shareholders filed under Item 1 of this Form.

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

PROXY VOTING POLICIES AND PROCEDURES

REVISED AS OF FEBRUARY 28, 2018

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 Global Dividend Opportunity Fund, Wells Fargo Income Opportunities Fund, Wells Fargo Multi-Sector Income Fund, and Wells Fargo Utilities and 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”), a registered investment adviser, 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.

3

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; Committee Actions. The Proxy Committee shall convene or act through written consent, including through the use of electronic systems of record, as needed and when discretionary voting determinations need to be considered. The Proxy Committee shall have the authority to act by vote or written consent of a majority of the full Proxy Committee members, or a designated working group thereof, 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 are identified in Appendix B. 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.

4

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; and

2. Proxy items for any third party registered investment companies (e.g., mutual funds, exchange-traded funds and closed-end funds) and business development companies (as defined in Section 2(a)(48) of the Investment Company Act of 1940 (the “1940 Act”)) (“Third Party Fund Holding Voting Matters”).¹

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 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.

¹  Where provisions of the 1940 Act specify the manner in which a Third Party Fund Holding Voting Matter must be voted (e.g., vote such matters in accordance with voting instructions sought from a Fund’s shareholders or vote shares in the same proportion as the vote of all other holders of the registered investment company), a Fund shall vote the Third Party Fund Holding Voting Matter accordingly.

5

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 or that, in the determination of the Proxy Committee, otherwise warrants the taking of additional steps to mitigate the conflict, 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 its 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 how to vote on such matter;

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 identified an affiliation, directly or

6

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, irrespective of the Proxy Level designated for such matters by ISS.

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 https://www.wellsfargofunds.com/ and on the Securities and Exchange Commission’s website at http://www.sec.gov.

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 https://www.wellsfargofunds.com/ 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;

7

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.

8

APPENDIX A

TO

PROXY VOTING POLICIES AND PROCEDURES

Funds Management will vote proxies relating to portfolio securities held by the Trusts in accordance with the following proxy voting guidelines. To the extent the specific guidelines below do not address a proxy voting proposal, Funds Management will vote pursuant to ISS’ current U.S. and International proxy voting guidelines. Proxies for securities held by the Wells Fargo Advantage Social Awareness Fund related to social and environmental proposals will be voted pursuant to ISS’ current SRI Proxy Voting Guidelines. In addition, proxies related to issues not addressed by the specific guidelines below or by ISS’ current U.S. and International proxy voting guidelines will be forwarded to the Proxy Committee for a vote determination by the Proxy Committee.

Uncontested Election of Directors or Trustees

THE FUNDS will generally vote for all uncontested director or trustee nominees. The Nominating Committee is in the best position to select nominees who are available and capable of working well together to oversee management of the company. THE FUNDS will not require a performance test for directors.	FOR
THE FUNDS will generally vote for reasonably crafted shareholder proposals calling for directors to be elected with an affirmative majority of votes cast and/or the elimination of the plurality standard for electing directors, unless the company has adopted formal corporate governance principles that present a meaningful alternative to the majority voting standard.	FOR
THE FUNDS will withhold votes for a director if the nominee fails to attend at least 75% of the board and committee meetings without a valid excuse.	WITHHOLD
THE FUNDS will vote against routine election of directors if any of the following apply: company fails to disclose adequate information in a timely manner, serious issues with the finances, questionable transactions, conflicts of interest, record of abuses against minority shareholder interests, bundling of director elections, and/or egregious governance practices.	AGAINST
THE FUNDS will withhold votes from the entire board (except for new nominees) where the director(s) receive more than 50% withhold votes out of those cast and the issue that was the underlying cause of the high level of withhold votes has not been addressed.	WITHHOLD
THE FUNDS will withhold votes from members of the Audit Committee and/or the full board if poor accounting practices, which rise to a level of serious concern, such as: fraud; misapplication of GAAP; and material weaknesses identified in Section 404 disclosures, are identified.	WITHHOLD

THE FUNDS will withhold votes from members of the Audit Committee if the company receives an adverse opinion on the company’s financial statements from its auditor.	WITHHOLD
THE FUNDS will withhold votes from members of the Audit Committee if there is persuasive evidence that the audit committee entered into an inappropriate indemnification agreement with its auditor that limits the ability of the company, or its shareholders, to pursue legitimate legal recourse against the audit firm.	WITHHOLD
THE FUNDS will withhold votes from all directors (except for new nominees) if the company has adopted or renewed a poison pill without shareholder approval since the company’s last annual meeting, does not put the pill to a vote at the current annual meeting, and does not have a requirement or does not commit to put the pill to shareholder vote within 12 months. In addition, THE FUNDS will withhold votes on all directors at any company that responds to the majority of the shareholders voting by putting the poison pill to a shareholder vote with a recommendation other than to eliminate the pill.	WITHHOLD
THE FUNDS will withhold votes from compensation committee members if they fail to submit one-time transferable stock options (TSO’s) to shareholders for approval.	WITHHOLD
Limitation on Number of Boards a Director May Sit On
THE FUNDS will withhold votes from directors who sit on more than six boards.	WITHHOLD
THE FUNDS will withhold votes from CEO directors who sit on more than two outside boards besides their own.	WITHHOLD
Ratification of Auditors
THE FUNDS will vote against auditors and withhold votes from audit committee members if non-audit fees are greater than audit fees, audit-related fees, and permitted tax fees, combined. THE FUNDS will follow the disclosure categories being proposed by the SEC in applying the above formula.	AGAINST/ WITHHOLD
With the above exception, THE FUNDS will generally vote for proposals to ratify auditors unless:	FOR
1.  an auditor has a financial interest in or association with the company, and is therefore not independent, or	AGAINST

2.  there is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position.	AGAINST
THE FUNDS will vote against proposals that require auditors to attend annual meetings as auditors are regularly reviewed by the board audit committee, and such attendance is unnecessary.	AGAINST
THE FUNDS will vote for shareholder proposals requesting a shareholder vote for audit firm ratification.	FOR
THE FUNDS will vote against shareholder proposals asking for audit firm rotation. This practice is viewed as too disruptive and too costly to implement for the benefit achieved.	AGAINST
Company Name Change/Purpose
THE FUNDS will vote for proposals to change the company name as management and the board is best suited to determine if such change in company name is necessary.	FOR
However, where the name change is requested in connection with a reorganization of the company, the vote will be based on the merits of the reorganization.	CASE-BY-CASE
In addition, THE FUNDS will generally vote for proposals to amend the purpose of the company. Management is in the best position to know whether the description of what the company does is accurate, or whether it needs to be updated by deleting, adding or revising language.	FOR
Employee Stock Purchase Plans/401(k) Employee Benefit Plans
THE FUNDS will vote for proposals to adopt, amend or increase authorized shares for employee stock purchase plans and 401(k) plans for employees as properly structured plans enable employees to purchase common stock at a slight discount and thus own a beneficial interest in the company, provided that the total cost of the company’s plan is not above the allowable cap for the company.	FOR
Similarly, THE FUNDS will generally vote for proposals to adopt or amend thrift and savings plans, retirement plans, pension plans and profit plans.	FOR

Anti-Hedging/Pledging/Speculative Investments Policy

THE FUNDS will consider proposals prohibiting named executive officers from engaging in derivative or speculative transactions involving company stock, including hedging, holding stock in a margin account, or pledging stock as collateral for a loan on a case-by-case basis. The company’s existing policies regarding responsible use of company stock will be considered.	CASE-BY-CASE
Approve Other Business
THE FUNDS will generally vote for proposals to approve other business. This transfer of authority allows the corporation to take certain ministerial steps that may arise at the annual or special meeting.	FOR
However, THE FUNDS retains the discretion to vote against such proposals if adequate information is not provided in the proxy statement, or the measures are significant and no further approval from shareholders is sought.	AGAINST
Independent Board of Directors/Board Committees
THE FUNDS will vote for proposals requiring that two-thirds of the board be independent directors. An independent board faces fewer conflicts and is best prepared to protect stockholders’ interests.	FOR
THE FUNDS will withhold votes from insiders and affiliated outsiders on boards that are not at least majority independent.	WITHHOLD
THE FUNDS will withhold votes from compensation committee members where there is a pay-for-performance disconnect (for Russell 3000 companies).	WITHHOLD
THE FUNDS will vote for proposals requesting that the board audit, compensation and/or nominating committees be composed of independent directors, only. Committees should be composed entirely of independent directors in order to avoid conflicts of interest.	FOR
THE FUNDS will withhold votes from any insiders or affiliated outsiders on audit, compensation or nominating committees. THE FUNDS will withhold votes from any insiders or affiliated outsiders on the board if any of these key committees has not been established.	WITHHOLD
THE FUNDS will vote against proposals from shareholders requesting an independent compensation consultant.	AGAINST

Director Fees

THE FUNDS will vote for proposals to set director fees.	FOR
Minimum Stock Requirements by Directors
THE FUNDS will vote against proposals requiring directors to own a minimum number of shares of company stock in order to qualify as a director, or to remain on the board. Minimum stock ownership requirements can impose an across-the-board requirement that could prevent qualified individuals from serving as directors.	AGAINST
Indemnification and Liability Provisions for Directors and Officers
THE FUNDS will vote for proposals to allow indemnification of directors and officers, when the actions taken were on behalf of the company and no criminal violations occurred. THE FUNDS will also vote in favor of proposals to purchase liability insurance covering liability in connection with those actions. Not allowing companies to indemnify directors and officers to the degree possible under the law would limit the ability of the company to attract qualified individuals.	FOR
Alternatively, THE FUNDS will vote against indemnity proposals that are overly broad. For example, THE FUNDS will oppose proposals to indemnify directors for acts going beyond mere carelessness, such as gross negligence, acts taken in bad faith, acts not otherwise allowed by state law or more serious violations of fiduciary obligations.	AGAINST
Nominee Statement in the Proxy
THE FUNDS will vote against proposals that require board nominees to have a statement of candidacy in the proxy, since the proxy statement already provides adequate information pertaining to the election of directors.	AGAINST
Director Tenure/Retirement Age
THE FUNDS will vote against proposals to limit the tenure of directors as such limitations based on an arbitrary number could prevent qualified individuals from serving as directors. However, THE FUNDS is in favor of inserting cautionary language when the average director tenure on the board exceeds 15 years for the entire board.	AGAINST
The Funds will vote for proposals to establish a mandatory retirement age for directors provided that such retirement age is not less than 65.	FOR

Board Powers/Procedures/Qualifications

THE FUNDS will consider on a case-by-case basis proposals to amend the corporation’s By-laws so that the Board of Directors shall have the power, without the assent or vote of the shareholders, to make, alter, amend, or rescind the By-laws, fix the amount to be reserved as working capital, and fix the number of directors and what number shall constitute a quorum of the Board. In determining these issues, THE FUNDS will rely on the proxy voting Guidelines.	CASE-BY-CASE
Adjourn Meeting to Solicit Additional Votes
THE FUNDS will examine proposals to adjourn the meeting to solicit additional votes on a case-by-case basis. As additional solicitation may be costly and could result in coercive pressure on shareholders, THE FUNDS will consider the nature of the proposal and its vote recommendations for the scheduled meeting.	CASE-BY-CASE
THE FUNDS will vote for this item when:
THE FUNDS is supportive of the underlying merger proposal; the company provides a sufficient, compelling reason to support the adjournment proposal; and the authority is limited to adjournment proposals requesting the authority to adjourn solely to solicit proxies to approve a transaction THE FUNDS supports.	FOR
Reimbursement of Solicitation Expenses
THE FUNDS will consider contested elections on a case-by-case basis, considering the following factors: long-term financial performance of the target company relative to its industry; management’s track record; background of the proxy contest; qualifications of director or trustee nominees (both slates); evaluation of what each side is offering shareholders as well as the likelihood that the proposed objectives and goals can be met; and stock ownership positions.	CASE-BY-CASE
Board Structure: Staggered vs. Annual Elections
THE FUNDS will consider the issue of classified boards on a case-by-case basis. In some cases, the division of the board into classes, elected for staggered terms, can entrench the incumbent management and make them less responsive to shareholder concerns. On the other hand, in some cases, staggered elections may provide for the continuity of experienced directors on the Board.	CASE-BY-CASE

Removal of Directors

THE FUNDS will consider on a case-by-case basis proposals to eliminate shareholders’ rights to remove directors with or without cause or only with approval of two-thirds or more of the shares entitled to vote.	CASE-BY-CASE
However, a requirement that a 75% or greater vote be obtained for removal of directors is abusive and will warrant a vote against the proposal.	AGAINST
Board Vacancies
THE FUNDS will vote against proposals that allow the board to fill vacancies without shareholder approval as these authorizations run contrary to basic shareholders’ rights.	AGAINST
Alternatively, THE FUNDS will vote for proposals that permit shareholders to elect directors to fill board vacancies.	FOR
Cumulative Voting
THE FUNDS will vote on proposals to permit or eliminate cumulative voting on a case-by-case basis based upon the existence of a counter balancing governance structure and company performance, in accordance with its proxy voting guideline philosophy.	CASE-BY-CASE
THE FUNDS will vote for against cumulative voting if the board is elected annually.	AGAINST
Board Size
THE FUNDS will vote for proposals that seek to fix the size of the board, as the ability for management to increase or decrease the size of the board in the face of a proxy contest may be used as a takeover defense.	FOR
However, if the company has cumulative voting, downsizing the board may decrease a minority shareholder’s chances of electing a director.
By increasing the size of the board, management can make it more difficult for dissidents to gain control of the board. Fixing the size of the board also prevents a reduction in the board size as a means to oust independent directors or those who cause friction within an otherwise homogenous board.
Shareholder Rights Plan (Poison Pills)
THE FUNDS will generally vote for proposals that request a company to submit its poison pill for shareholder ratification.	FOR

Alternatively, THE FUNDS will analyze proposals to redeem a company’s poison pill, or requesting the ratification of a poison pill on a case-by-case basis.	CASE-BY-CASE
Poison pills are one of the most potent anti-takeover measures and are generally adopted by boards without shareholder approval. These plans harm shareholder value and entrench management by deterring stock acquisition offers that are not favored by the board.
Fair Price Provisions
THE FUNDS will consider fair price provisions on a case-by-case basis, evaluating factors such as the vote required to approve the proposed mechanism, the vote required to approve the proposed acquisition, the vote required to repeal the fair price provision, and the mechanism for determining the fair price.	CASE-BY-CASE
THE FUNDS will vote against fair price provisions with shareholder vote requirements of 75% or more of disinterested shares.	AGAINST
Greenmail
THE FUNDS will generally vote in favor of proposals limiting the corporation’s authority to purchase shares of common stock (or other outstanding securities) from a holder of a stated interest (5% or more) at a premium unless the same offer is made to all shareholders. These are known as “anti-greenmail” provisions. Greenmail discriminates against rank-and-file shareholders and may have an adverse effect on corporate image.	FOR
If the proposal is bundled with other charter or bylaw amendments, THE FUNDS will analyze such proposals on a case-by-case basis. In addition, THE FUNDS will analyze restructurings that involve the payment of pale greenmail on a case-by-case basis.	CASE-BY-CASE
Voting Rights
THE FUNDS will vote for proposals that seek to maintain or convert to a one-share, one-vote capital structure as such a principle ensures that management is accountable to all the company’s owners.	FOR
Alternatively, THE FUNDS will vote against any proposals to cap the number of votes a shareholder is entitled to. Any measure that places a ceiling on voting may entrench management and lessen its interest in maximizing shareholder value.	AGAINST

Dual Class/Multiple-Voting Stock

THE FUNDS will vote against proposals that authorize, amend or increase dual class or multiple-voting stock which may be used in exchanges or recapitalizations. Dual class or multiple-voting stock carry unequal voting rights, which differ from those of the broadly traded class of common stock.	AGAINST
Alternatively, THE FUNDS will vote for the elimination of dual class or multiple-voting stock, which carry different rights than the common stock.	FOR
Confidential Voting
THE FUNDS will vote for proposals to adopt confidential voting.	FOR
Vote Tabulations
THE FUNDS will vote against proposals asking corporations to refrain from counting abstentions and broker non-votes in their vote tabulations and to eliminate the company’s discretion to vote unmarked proxy ballots. Vote counting procedures are determined by a number of different standards, including state law, the federal proxy rules, internal corporate policies, and mandates of the various stock exchanges.	AGAINST
Equal Access to the Proxy
THE FUNDS will evaluate Shareholder proposals requiring companies to give shareholders access to the proxy ballot for the purpose of nominating board members, on a case-by-case basis taking into account the ownership threshold proposed in the resolution and the proponent’s rationale for the proposal at the targeted company in terms of board and director conduct.	CASE-BY-CASE
Disclosure of Information
THE FUNDS will vote against shareholder proposals requesting fuller disclosure of company policies, plans, or business practices. Such proposals rarely enhance shareholder return and in many cases would require disclosure of confidential business information.	AGAINST
Annual Meetings
THE FUNDS will vote for proposals to amend procedures or change date or location of the annual meeting. Decisions as to procedures, dates or locations of meetings are best placed with management.	FOR

Alternatively, THE FUNDS will vote against proposals from shareholders calling for a change in the location or date of annual meetings as no date or location proposed will be acceptable to all shareholders.	AGAINST
THE FUNDS will generally vote in favor of proposals to reduce the quorum necessary for shareholders’ meetings, subject to a minimum of a simple majority of the company’s outstanding voting shares.	FOR
Shareholder Advisory Committees/Independent Inspectors
THE FUNDS will vote against proposals seeking to establish shareholder advisory committees or independent inspectors. The existence of such bodies dilutes the responsibility of the board for managing the affairs of the corporation.	AGAINST
Technical Amendments to the Charter of Bylaws
THE FUNDS will generally vote in favor of charter and bylaw amendments proposed solely to conform to modern business practices, for simplification, or to comply with what management’s counsel interprets as applicable law.	FOR
However, amendments that have a material effect on shareholder’s rights will be considered on a case-by-case basis.	CASE-BY-CASE
Bundled Proposals
THE FUNDS will vote for bundled or “conditional” proxy proposals on a case-by-case basis, as THE FUNDS will examine the benefits and costs of the packaged items, and determine if the effect of the conditioned items are in the best interests of shareholders.	CASE-BY-CASE
Dividends
THE FUNDS will vote for proposals to allocate income and set dividends.	FOR
THE FUNDS will also vote for proposals that authorize a dividend reinvestment program as it allows investors to receive additional stock in lieu of a cash dividend.	FOR
However, if a proposal for a special bonus dividend is made that specifically rewards a certain class of shareholders over another, THE FUNDS will vote against the proposal.	AGAINST

THE FUNDS will also vote against proposals from shareholders requesting management to redistribute profits or restructure investments. Management is best placed to determine how to allocate corporate earnings or set dividends.	AGAINST
Reduce the Par Value of the Common Stock
THE FUNDS will vote for proposals to reduce the par value of common stock.	FOR
Preferred Stock Authorization
THE FUNDS will generally vote for proposals to create preferred stock in cases where the company expressly states that the stock will not be used as a takeover defense or carry superior voting rights, or where the stock may be used to consummate beneficial acquisitions, combinations or financings.	FOR
Alternatively, THE FUNDS will vote against proposals to authorize or issue preferred stock if the board has asked for the unlimited right to set the terms and conditions for the stock and may issue it for anti-takeover purposes without shareholder approval (blank check preferred stock).	AGAINST
In addition, THE FUNDS will vote against proposals to issue preferred stock if the shares to be used have voting rights greater than those available to other shareholders.	AGAINST
THE FUNDS will vote for proposals to require shareholder approval of blank check preferred stock issues for other than general corporate purposes (white squire placements).	FOR
Preemptive Rights
THE FUNDS will generally vote for proposals to eliminate preemptive rights. Preemptive rights are unnecessary to protect shareholder interests due to the size of most modern companies, the number of investors and the liquidity of trading.	FOR
Share Repurchase Plans
THE FUNDS will vote for share repurchase plans, unless: 3.  there is clear evidence of past abuse of the authority; or	FOR AGAINST
4.  the plan contains no safeguards against selective buy-backs. Corporate stock repurchases are a legitimate use of corporate funds and can add to long-term shareholder returns.	AGAINST

Executive and Director Compensation Plans
THE FUNDS will analyze on a case-by-case basis proposals on executive or director compensation plans, with the view that viable compensation programs reward the creation of stockholder wealth by having high payout sensitivity to increases in shareholder value. Such proposals may seek shareholder approval to adopt a new plan, or to increase shares reserved for an existing plan.	CASE-BY-CASE
THE FUNDS will review the potential cost and dilutive effect of the plan. After determining how much the plan will cost, ISS evaluates whether the cost is reasonable by comparing the cost to an allowable cap. The allowable cap is industry-specific, market cap-base, and pegged to the average amount paid by companies performing in the top quartile of their peer groups. If the proposed cost is below the allowable cap, THE FUNDS will vote for the plan. ISS will also apply a pay for performance overlay in assessing equity-based compensation plans for Russell 3000 companies.	FOR
If the proposed cost is above the allowable cap, THE FUNDS will vote against the plan.	AGAINST
Among the plan features that may result in a vote against the plan are:	AGAINST
5.  plan administrators are given the authority to reprice or replace underwater options; repricing guidelines will conform to changes in the NYSE and NASDAQ listing rules.
THE FUNDS will vote against equity plans that have high average three-year burn rate. (The burn rate is calculated as the total number of stock awards and stock options granted any given year divided by the number of common shares outstanding.) THE FUNDS will define a high average three-year burn rate as the following: The company’s most recent three-year burn rate exceeds one standard deviation of its four-digit GICS peer group segmented by Russell 3000 index and non-Russell 3000 index; and the company’s most recent three-year burn rate exceeds 2% of common shares outstanding. For companies that grant both full value awards and stock options to their employees, THE FUNDS shall apply a premium on full value awards for the past three fiscal years.	AGAINST
Even if the equity plan fails the above burn rate, THE FUNDS will vote for the plan if the company commits in a public filing to a three-year average burn rate equal to its GICS group burn rate mean plus one standard deviation. If the company fails to fulfill its burn rate commitment, THE FUNDS will consider withholding from the members of the compensation committee.	FOR

THE FUNDS will calculate a higher award value for awards that have Dividend Equivalent Rights (DER’s) associated with them.	CASE-BY-CASE
THE FUNDS will generally vote for shareholder proposals requiring performance-based stock options unless the proposal is overly restrictive or the company demonstrates that it is using a substantial portion of performance-based awards for its top executives.	FOR
THE FUNDS will vote for shareholder proposals asking the company to expense stock options, as a result of the FASB final rule on expensing stock options.	FOR
THE FUNDS will generally vote for shareholder proposals to exclude pension fund income in the calculation of earnings used in determining executive bonuses/compensation.	FOR
THE FUNDS will generally vote for TSO awards within a new equity plan if the total cost of the equity plan is less than the company’s allowable cap.	FOR
THE FUNDS will generally vote against shareholder proposals to ban future stock option grants to executives. This may be supportable in extreme cases where a company is a serial repricer, has a huge overhang, or has highly dilutive, broad-based (non-approved) plans and is not acting to correct the situation.	AGAINST
THE FUNDS will evaluate shareholder proposals asking companies to adopt holding periods for their executives on a case-by-case basis taking into consideration the company’s current holding period or officer share ownership requirements, as well as actual officer stock ownership in the company.	CASE-BY-CASE
For certain OBRA-related proposals, THE FUNDS will vote for plan provisions that (a) place a cap on annual grants or amend administrative features, and (b) add performance criteria to existing compensation plans to comply with the provisions of Section 162(m) of the Internal Revenue Code.	FOR
In addition, director compensation plans may also include stock plans that provide directors with the option of taking all or a portion of their cash compensation in the form of stock. THE FUNDS will consider these plans based on their voting power dilution.	CASE-BY-CASE
THE FUNDS will generally vote for retirement plans for directors.	FOR

THE FUNDS will evaluate compensation proposals (Tax Havens) requesting share option schemes or amending an existing share option scheme on a case-by-case basis. Stock options align management interests with those of shareholders by motivating executives to maintain stock price appreciation. Stock options, however, may harm shareholders by diluting each owner’s interest. In addition, exercising options can shift the balance of voting power by increasing executive ownership.	CASE-BY-CASE
Bonus Plans
THE FUNDS will vote for proposals to adopt annual or long-term cash or cash-and-stock bonus plans on a case-by-case basis. These plans enable companies qualify for a tax deduction under the provisions of Section 162(m) of the IRC. Payouts under these plans may either be in cash or stock and are usually tied to the attainment of certain financial or other performance goals. THE FUNDS will consider whether the plan is comparable to plans adopted by companies of similar size in the company’s industry and whether it is justified by the company’s performance.	CASE-BY-CASE
Deferred Compensation Plans
THE FUNDS will generally vote for proposals to adopt or amend deferred compensation plans as they allow the compensation committee to tailor the plan to the needs of the executives or board of directors, unless	FOR
6.  the proposal is embedded in an executive or director compensation plan that is contrary to guidelines	AGAINST
Disclosure on Executive or Director Compensation Cap or Restrict Executive or Director Compensation
THE FUNDS will generally vote for shareholder proposals requiring companies to report on their executive retirement benefits (deferred compensation, split-dollar life insurance, SERPs, and pension benefits.	FOR
THE FUNDS will generally vote for shareholder proposals requesting to put extraordinary benefits contained in SERP agreements to a shareholder vote, unless the company’s executive pension plans do not contain excessive benefits beyond what is offered under employee-wide plans.	FOR
THE FUNDS will generally vote against proposals seek to limit executive and director pay.	AGAINST

Tax-Gross-Up Payments

THE FUNDS will examine on a case-by-case basis proposals calling for companies to adopt a policy of not providing tax gross-up payments to executives.	CASE-BY-CASE
Relocation Benefits
The FUNDS will not consider relocation benefits as a problematic pay practice in connection with management say-on-pay proposals.
Exchange Offers/Re-Pricing
The FUNDS will not vote against option exchange programs made available to executives and directors that are otherwise found acceptable.
Golden and Tin Parachutes
THE FUNDS will vote for proposals that seek shareholder ratification of golden or tin parachutes as shareholders should have the opportunity to approve or disapprove of these severance agreements.	FOR
Alternatively, THE FUNDS will examine on a case-by-case basis proposals that seek to ratify or cancel golden or tin parachutes. Effective parachutes may encourage management to consider takeover bids more fully and may also enhance employee morale and productivity. Among the arrangements that will be considered on their merits are:	CASE-BY-CASE
7.  arrangements guaranteeing key employees continuation of base salary for more than three years or lump sum payment of more than three times base salary plus retirement benefits; 8.  guarantees of benefits if a key employee voluntarily terminates; 9.  guarantees of benefits to employees lower than very senior management; and 10.  indemnification of liability for excise taxes.
By contrast, THE FUNDS will vote against proposals that would guarantee benefits in a management-led buyout.	AGAINST
Stakeholder Laws
THE FUNDS will vote against resolutions that would allow the Board to consider stakeholder interests (local communities, employees, suppliers, creditors, etc.) when faced with a takeover offer.	AGAINST

Similarly, THE FUNDS will vote for proposals to opt out of stakeholder laws, which permit directors, when taking action, to weight the interests of constituencies other than shareholders in the process of corporate decision-making. Such laws allow directors to consider nearly any factor they deem relevant in discharging their duties.	FOR
Mergers/Acquisitions and Corporate Restructurings
THE FUNDS will consider proposals on mergers and acquisitions on a case-by-case basis. THE FUNDS will determine if the transaction is in the best economic interests of the shareholders. THE FUNDS will take into account the following factors: 11.  anticipated financial and operating benefits; 12.  offer price (cost versus premium); 13.  prospects for the combined companies; 14.  how the deal was negotiated; 15.  changes in corporate governance and their impact on shareholder rights.	CASE-BY-CASE
In addition, THE FUNDS will also consider whether current shareholders would control a minority of the combined company’s outstanding voting power, and whether a reputable financial advisor was retained in order to ensure the protection of shareholders’ interests.	CASE-BY-CASE
On all other business transactions, i.e. corporate restructuring, spin-offs, asset sales, liquidations, and restructurings, THE FUNDS will analyze such proposals on a case-by-case basis and utilize the majority of the above factors in determining what is in the best interests of shareholders. Specifically, for liquidations, the cost versus premium factor may not be applicable, but THE FUNDS may also review the compensation plan for executives managing the liquidation.	CASE-BY-CASE
Appraisal Rights
THE FUNDS will vote for proposals to restore, or provide shareholders with rights of appraisal.	FOR
Rights of appraisal provide shareholders who are not satisfied with the terms of certain corporate transactions (such as mergers) the right to demand a judicial review in order to determine the fair value of their shares.

Mutual Fund Proxies
THE FUNDS will vote mutual fund proxies on a case-by-case basis. Proposals may include, and are not limited to, the following issues:	CASE-BY-CASE
16.  eliminating the need for annual meetings of mutual fund shareholders; 17.  entering into or extending investment advisory agreements and management contracts; 18.  permitting securities lending and participation in repurchase agreements; 19.  changing fees and expenses; and 20.  changing investment policies.

APPENDIX B

TO

PROXY VOTING POLICIES AND PROCEDURES

Members of Funds Management Proxy Voting Committee

Thomas C. Biwer, CFA

Mr. Biwer has 38 years 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 22 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 17 years experience in the investment industry. He has served as a overlay portfolio manager and investment consultant. He holds a Masters Degree from the University of Wisconsin – Milwaukee and Bachelors degree from Marquette University. He has earned the right to use the CFA, CIPM and CIMA designations.

Patrick E. McGuinnis, CFA

Mr. McGuinnis has 12 years of experience in the investment industry as an analyst. He holds B.S. and M.S. degrees in Finance from the University of Wisconsin and has earned the right to use the CFA designation.

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

PORTFOLIO MANAGERS

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.

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.

Lauren van Biljon, CFA

Lauren van Biljon is a portfolio manager and sovereign analyst with the Wells Fargo Asset Management (WFAM) Global Fixed Income team. She joined WFAM from Evergreen Investments in 2009. Prior to this, she served as an emerging markets analyst with 4Cast Ltd., where she began her investment industry career in 2007. She earned a bachelor’s degree in economics from the University of Cape Town, South Africa, and a master’s degree in economics from the University of Edinburgh, U.K. She has earned the right to use the CFA designation and is a member of the Society of Technical Analysts (STA).

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.

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.

Peter Wilson

Mr. Wilson is a managing director and senior portfolio manager with the Wells Fargo Asset Management (International), LLC 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.

Michael Lee

Mr. Lee is a senior portfolio manager with the Wells Fargo Asset Management (International), LLC 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 JPMorganChase and National Westminster Bank. Michael began his investment industry career in 1982. He is a member of the U.K. Society of Investment Professionals.

Alex Perrin

Mr. Perrin is a senior portfolio manager with the Wells Fargo Asset Management (International), LLC 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 Wells Fargo Asset Management (International), LLC (formerly, 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.

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, 2018.

Christopher Y. Kauffman

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		7		0		3
Total assets of above accounts (millions)	$	3,823.24	$	0	$	435.21

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	$	0.0	$	0.0

Michael Lee

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		6		2		14
Total assets of above accounts (millions)	$	575m	$	328m	$	4,114m

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		3
Total assets of above accounts (millions)	$	0.0	$	0.0	$	888m

Niklas Nordenfelt

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		6		4		16
Total assets of above accounts (millions)	$	2,398.5	$	391.5	$	1,473.5

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	$	0.0	$	0.0

Alex Perrin

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		7		2		14
Total assets of above accounts (millions)	$	593m	$	328m	$	4,114m

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		3
Total assets of above accounts (millions)	$	0.0	$	0.0	$	888m

Philip Susser

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		5		4		16
Total assets of above accounts (millions)	$	2,241.6	$	391.5	$	1,473.5

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	$	0.0	$	0.0

Lauren van Biljon

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		4		2		14
Total assets of above accounts (millions)	$	466m	$	328m	$	4,144m

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		3
Total assets of above accounts (millions)	$	0.0	$	0.0	$	888m

Peter Wilson

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		3		2		14
Total assets of above accounts (millions)	$	448m	$	328m	$	888m

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	$	0.0	$	0.0

Noah Wise

I manage the following types of accounts:	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Number of above accounts		8		4		18
Total assets of above accounts (millions)	$	2,498.008	$	1,809.892	$	1,576.669

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	$	0.0	$	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.

Wells Fargo Asset Management (International), LLC

Wells Fargo Asset Management (International), LLC’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 Fargo Asset Management (International), LLC 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:

Wells Fargo Asset Management (International), LLC Compensation. The compensation structure for Wells Fargo Asset Management (International), LLC’s Portfolio Managers includes a competitive fixed base salary plus variable incentives (Wells Fargo Asset Management (International), LLC 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, 2018:

Christopher Y. Kauffman	none
Michael Lee	none
Niklas Nordenfelt	none
Alex Perrin	none
Philip Susser	none
Lauren van Biljon	none
Peter Wilson	none
Noah Wise	none

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

Multi-Sector Income Fund

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
11/1/2017 to 11/30/2017		N/A		N/A		N/A		N/A
12/1/2017 to 12/31/2017		N/A		N/A		N/A		N/A
1/1/2018 to 1/31/2018		1,368,820		13.15		1,368,820		2,125,148
2/1/2018 to 2/28/2018		512,541		13.05		512,541		1,612,607
3/1/2018 to 3/31/2018		187,884		13.00		187,884		1,424,723
4/1/2018 to 4/30/18		43,447		13.05		43,447		1,381,276
5/1/2018 to 5/31/2018		22,143		12.82		22,143		1,359,133
6/1/2018 to 6/30/2018		109,984		12.56		109,984		1,249,149
7/1/2018 to 7/31/2018		511,128		12.54		511,128		738,021
8/1/2018 to 8/31/2018		62,481		12.65		62,481		675,540
9/1/2018 to 9/30/2018		201,105		12.33		201,105		474,435
10/1/2018 to 10/31/2018		377,650		11.89		377,650		96,785
Total		3,397,183		12.82		3,397,183		96,785

On November 10, 2017, the Fund announced an extension of its open-market share repurchase program (the “Buyback Program”). Under the extended Buyback Program, the Fund may repurchase up to 10% of its outstanding shares during the period in open market transactions beginning on January 1, 2018 and ending on December 31, 2018.

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

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

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Multi-Sector Income Fund (the “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, 2018

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, 2018
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date:	December 21, 2018

EX-99.CODE

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.

May 24, 2016 1 Code of Ethics

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.

May 24, 2016 5 Code of Ethics

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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●	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.

May 24, 2016 12 Code of Ethics

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.

May 24, 2016 13 Code of Ethics

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.

May 24, 2016 14 Code of Ethics

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.

May 24, 2016 15 Code of Ethics

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.

May 24, 2016 16 Code of Ethics

Wells Fargo Funds

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

CERTIFICATION

I, Andrew Owen, 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, 2018

/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, 2018

/s/ Jeremy DePalma

Jeremy DePalma

Treasurer

Wells Fargo Multi-Sector Income Fund

Exhibit 99.CERT

EX-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, 2018 (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, 2018

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, 2018 (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, 2018

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