Edgar Filing: WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

Gross unrealized appreciation

30,781,691

Gross unrealized depreciation

(39,751,657

Net unrealized depreciation

(8,969,966

Form N-Q

LOGO

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21331

Wells Fargo Advantage Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

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

(Name and address of agent for service)

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

Date of fiscal year end: Registrant is making a filing for Wells Fargo Advantage Multi-Sector Income Fund. The Fund had an October 31 fiscal year end.

Date of reporting period: January 31, 2014

ITEM 1. INVESTMENTS


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Agency Securities : 2.51%
FHLMC		8.50	%	7-1-2028	$	80,172	$	94,349
FHLMC		8.50		3-1-2030		53,503		55,985
FHLMC Series 1383 ±		3.43		2-1-2037		642,418		674,316
FHLMC Series 196 Class A ±		0.96		12-15-2021		54,166		54,548
FHLMC Series 2011-K16 Class B ±144A		4.59		11-25-2046		1,000,000		1,023,924
FHLMC Series 2011-K701 Class B ±144A		4.29		7-25-2048		165,000		172,291
FHLMC Series 2011-K702 Class B ±144A		4.77		4-25-2044		740,000		786,579
FHLMC Series 2012-K17 Class B ±144A		4.35		12-25-2044		675,000		678,360
FHLMC Series 2012-K18 Class B ±144A		4.26		1-25-2045		810,000		808,305
FHLMC Series 2012-K501 Class C ±144A		3.49		11-25-2046		800,000		795,539
FHLMC Series 2012-K705 Class B ±144A		4.16		9-25-2044		1,000,000		1,034,546
FHLMC Series 2012-K706 Class B ±144A		4.02		11-25-2044		500,000		513,814
FHLMC Series 2012-K706 Class C ±144A		4.02		11-25-2044		805,000		788,316
FHLMC Series 2012-K707 Class B ±144A		3.88		1-25-2047		930,000		948,284
FHLMC Series 2012-K709 Class B ±144A		3.74		4-25-2045		1,000,000		1,010,051
FHLMC Series 2012-K711 Class B ±144A		3.56		8-25-2045		264,000		262,841
FHLMC Series 2013-K30 Class B ±144A		3.56		6-25-2045		700,000		648,495
FHLMC Series 2013-K713 Class B ±144A		3.17		4-25-2046		1,000,000		961,682
FHLMC Series 2390 Class FD ±		0.61		12-15-2031		38,540		38,651
FHLMC Series 2567 Class FH ±		0.56		2-15-2033		137,477		136,926
FHLMC Series K007 Class X1 ±(c)		1.22		4-25-2020		997,359		55,023
FHLMC Series K016 Class X1 ±(c)		1.58		10-25-2021		388,424		37,529
FHLMC Series K020 Class X1 ±(c)		1.47		5-25-2022		6,919,228		652,504
FHLMC Series K021 Class X1 ±(c)		1.51		6-25-2022		9,234,101		909,005
FNMA ±		4.67		9-1-2032		1,447,508		1,557,890
FNMA		6.00		4-1-2033		70,206		78,730
FNMA ±		6.00		9-1-2037		714,615		748,453
FNMA		6.50		11-1-2032		62,541		64,475
FNMA		7.50		7-1-2017		55,226		58,070
FNMA		7.50		10-1-2028		8,249		8,276
FNMA		7.50		11-1-2028		153,729		166,008
FNMA		7.50		2-1-2030		38,042		38,606
FNMA		7.50		9-1-2030		90,401		96,473
FNMA		8.00		6-1-2030		24,669		25,120
FNMA		12.00		1-1-2016		4,479		4,536
FNMA Series 1996-46 Class FA ±		0.66		8-25-2021		30,105		30,155
FNMA Series 2001-25 Class Z		6.00		6-25-2031		269,440		298,261
FNMA Series 2001-35 Class F ±		0.76		7-25-2031		11,050		11,129
FNMA Series 2001-57 Class F ±		0.66		6-25-2031		11,125		11,183
FNMA Series 2002-77 Class FH ±		0.56		12-18-2032		87,633		87,714
FNMA Series 2002-97 Class FR ±		0.71		1-25-2033		22,038		22,101
FNMA Series G91-16 Class F ±		0.61		6-25-2021		36,011		36,033
FNMA Series G92-17 Class F ±		1.21		3-25-2022		84,296		85,466
GNMA		6.50		6-15-2028		50,192		56,424
GNMA		7.25		7-15-2017		16,448		16,699
GNMA		7.25		8-15-2017		37,230		39,514
GNMA		7.25		8-15-2017		18,978		19,326
GNMA		7.25		9-15-2017		28,737		30,591
GNMA		7.25		10-15-2017		50,947		54,017
GNMA		7.25		10-15-2017		24,719		26,201
GNMA		7.25		11-15-2017		21,675		22,759
GNMA		7.25		1-15-2018		8,434		8,463
GNMA		7.25		1-15-2018		11,060		11,098
GNMA		7.25		2-15-2018		21,857		22,389
GNMA		7.25		5-15-2018		11,603		11,643

Total Agency Securities (Cost $16,106,449)								16,889,666

Asset-Backed Securities : 0.11%
Bear Stearns I Trust Series 2006-HE1 Class 1A2 ±		0.38		12-25-2035		35,031		34,960
CVS Pass-Through Trust Series T		6.04		12-10-2028		604,365		675,953

Total Asset-Backed Securities (Cost $711,594)								710,913


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name					Shares		Value

Common Stocks : 0.13%

Consumer Discretionary : 0.00%

Hotels, Restaurants & Leisure : 0.00%
Trump Entertainment Resorts Incorporated †(a)(i)						1,161	$	0

Telecommunication Services : 0.13%

Diversified Telecommunication Services : 0.13%
Fairpoint Communications Incorporated †						70,442		902,362

Total Common Stocks (Cost $1,617,838)								902,362


	Interest rate			Maturity date	Principal

Corporate Bonds and Notes : 66.29%

Consumer Discretionary : 12.71%

Auto Components : 1.24%
Allison Transmission Incorporated 144A		7.13	%	5-15-2019	$	3,790,000		4,093,200
Cooper Tire & Rubber Company		7.63		3-15-2027		1,805,000		1,750,850
Cooper Tire & Rubber Company		8.00		12-15-2019		450,000		487,125
Goodyear Tire & Rubber Company		7.00		5-15-2022		400,000		435,000
Goodyear Tire & Rubber Company		8.75		8-15-2020		468,000		553,410
United Rentals North America Incorporated		5.75		7-15-2018		990,000		1,058,063

								8,377,648

Distributors : 0.14%
LKQ Corporation 144A		4.75		5-15-2023		1,000,000		930,000

Diversified Consumer Services : 1.14%
Ceridian HCM Holding Incorporated 144A		11.00		3-15-2021		50,000		56,813
Service Corporation International		6.75		4-1-2016		475,000		517,750
Service Corporation International		7.00		6-15-2017		1,410,000		1,589,775
Service Corporation International		7.00		5-15-2019		650,000		692,250
Service Corporation International		7.50		4-1-2027		2,993,000		3,165,098
Service Corporation International		7.63		10-1-2018		680,000		783,700
Service Corporation International		8.00		11-15-2021		475,000		545,063
Sotheby’s 144A		5.25		10-1-2022		315,000		296,100

								7,646,549

Hotels, Restaurants & Leisure : 3.78%
Burger King Corporation		9.88		10-15-2018		850,000		935,000
CCM Merger Incorporated 144A		9.13		5-1-2019		6,270,000		6,614,850
DineEquity Incorporated		9.50		10-30-2018		3,475,000		3,800,781
Greektown Superholdings Incorporated Series A		13.00		7-1-2015		7,850,000		8,085,500
Hilton Worldwide Finance LLC 144A		5.63		10-15-2021		195,000		201,825
Pinnacle Entertainment Incorporated		7.50		4-15-2021		2,620,000		2,839,425
Ruby Tuesday Incorporated		7.63		5-15-2020		2,025,000		1,832,625
Scientific Games Corporation		9.25		6-15-2019		485,000		515,313
Speedway Motorsports Incorporated		6.75		2-1-2019		525,000		556,500

								25,381,819

Household Durables : 0.10%
American Greetings Corporation		7.38		12-1-2021		475,000		477,375
Tempur Sealy International Incorporated		6.88		12-15-2020		200,000		218,750

								696,125


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Internet & Catalog Retail : 0.12%
Expedia Incorporated		5.95	%	8-15-2020	$	750,000	$	823,273

Media : 4.96%
Allbritton Communications Company		8.00		5-15-2018		1,275,000		1,344,615
Cablevision Systems Corporation		8.63		9-15-2017		1,310,000		1,526,150
CBS Corporation		8.88		5-15-2019		750,000		969,412
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corporation 144A		5.25		2-15-2022		195,000		195,975
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corporation 144A		5.63		2-15-2024		20,000		20,150
CCO Holdings LLC		8.13		4-30-2020		415,000		451,313
Cinemark USA Incorporated		7.38		6-15-2021		775,000		858,313
CSC Holdings LLC		7.63		7-15-2018		625,000		714,063
CSC Holdings LLC		7.88		2-15-2018		1,100,000		1,259,500
CSC Holdings LLC		8.63		2-15-2019		383,000		448,110
DIRECTV Holdings LLC		3.80		3-15-2022		750,000		733,093
DISH DBS Corporation		5.13		5-1-2020		350,000		350,000
DISH DBS Corporation		7.88		9-1-2019		480,000		547,800
DreamWorks Animation SKG Incorporated 144A		6.88		8-15-2020		2,350,000		2,496,875
EchoStar DBS Corporation		7.13		2-1-2016		125,000		137,500
EchoStar DBS Corporation		7.75		5-31-2015		350,000		378,875
Gray Television Incorporated		7.50		10-1-2020		5,235,000		5,588,363
Interpublic Group of Companies		4.00		3-15-2022		750,000		742,322
Lamar Media Corporation		5.88		2-1-2022		690,000		717,600
Lamar Media Corporation		7.88		4-15-2018		2,250,000		2,359,688
LIN Television Corporation		6.38		1-15-2021		275,000		287,375
LIN Television Corporation		8.38		4-15-2018		1,625,000		1,710,313
Live Nation Entertainment Incorporated 144A		7.00		9-1-2020		200,000		217,000
Lynx I Corporation 144A		5.38		4-15-2021		365,000		365,913
Lynx II Corporation 144A		6.38		4-15-2023		365,000		372,300
National CineMedia LLC		6.00		4-15-2022		1,860,000		1,934,400
National CineMedia LLC		7.88		7-15-2021		650,000		716,625
Nexstar Broadcasting Group Incorporated		6.88		11-15-2020		1,750,000		1,868,125
Regal Cinemas Corporation		8.63		7-15-2019		2,650,000		2,832,188
Regal Entertainment Group		5.75		6-15-2023		400,000		394,000
Time Warner Cable Incorporated		4.00		1-15-2022		750,000		774,254

								33,312,210

Multiline Retail : 0.09%
Macy’s Retail Holdings Incorporated		3.88		1-15-2022		600,000		612,251

Specialty Retail : 1.14%
ABC Supply Company Incorporated 144A		5.63		4-15-2021		450,000		454,500
Advance Auto Parts Incorporated		4.50		1-15-2022		600,000		623,768
Ahern Rentals Incorporated 144A		9.50		6-15-2018		1,200,000		1,302,000
L Brands Incorporated		6.63		4-1-2021		750,000		818,438
Neiman Marcus Group Limited 144A		8.00		10-15-2021		210,000		219,975
Penske Auto Group Incorporated		5.75		10-1-2022		1,155,000		1,189,650
Rent-A-Center Incorporated		6.63		11-15-2020		1,651,000		1,675,765
Toys “R” Us Property Company II LLC		8.50		12-1-2017		1,335,000		1,355,025

								7,639,121

Consumer Staples : 0.62%

Food & Staples Retailing : 0.09%
SABMiller Holdings Incorporated 144A		3.75		1-15-2022		600,000		614,949

Food Products : 0.41%
Darling International Incorporated 144A		5.38		1-15-2022		180,000		181,350
Kraft Foods Group Incorporated		3.50		6-6-2022		750,000		751,624


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Food Products (continued)
Simmons Foods Incorporated 144A		10.50	%	11-1-2017	$	1,695,000	$	1,822,125

								2,755,099

Tobacco : 0.12%
Lorillard Tobacco Company		6.88		5-1-2020		650,000		765,107

Energy : 13.06%

Energy Equipment & Services : 3.80%
Bristow Group Incorporated		6.25		10-15-2022		3,540,000		3,734,700
Cleaver Brooks Incorporated 144A		8.75		12-15-2019		275,000		302,500
Dresser-Rand Group Incorporated		6.50		5-1-2021		1,155,000		1,232,963
Era Group Incorporated		7.75		12-15-2022		2,565,000		2,674,013
Forum Energy Technologies Incorporated 144A		6.25		10-1-2021		200,000		209,000
Gulfmark Offshore Incorporated		6.38		3-15-2022		4,600,000		4,634,500
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		2,635,000		2,562,538
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		505,000		521,413
NGPL PipeCo LLC 144A		7.77		12-15-2037		4,875,000		4,168,125
Oil States International Incorporated		6.50		6-1-2019		1,480,000		1,565,100
PHI Incorporated		8.63		10-15-2018		3,662,000		3,941,228

								25,546,080

Oil, Gas & Consumable Fuels : 9.26%
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corporation		6.00		12-15-2020		1,075,000		1,104,563
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corporation 144A		6.13		3-1-2022		275,000		280,500
CVR Refining LLC/Coffeyville Finance Incorporated		6.50		11-1-2022		1,675,000		1,695,938
Denbury Resources Incorporated		4.63		7-15-2023		910,000		839,475
Denbury Resources Incorporated		6.38		8-15-2021		50,000		53,125
Denbury Resources Incorporated		8.25		2-15-2020		1,010,000		1,105,950
El Paso LLC		6.50		9-15-2020		445,000		478,371
El Paso LLC		7.00		6-15-2017		850,000		961,518
El Paso LLC		7.25		6-1-2018		1,585,000		1,813,798
El Paso LLC		7.42		2-15-2037		800,000		775,418
El Paso LLC		7.80		8-1-2031		1,850,000		1,920,655
El Paso Pipeline Partners Operating Company LLC		6.50		4-1-2020		750,000		868,110
Energy Transfer Equity LP		7.50		10-15-2020		3,100,000		3,491,375
Energy Transfer Partners LP		5.20		2-1-2022		750,000		803,786
Exterran Partners LP/EXLP Finance Corporation		6.00		4-1-2021		2,300,000		2,282,750
Kinder Morgan Energy Partners LP		3.95		9-1-2022		750,000		747,315
Murphy Oil USA Incorporated 144A		6.00		8-15-2023		385,000		384,038
Nabors Industries Incorporated		4.63		9-15-2021		750,000		769,597
Northern Tier Energy LLC		7.13		11-15-2020		1,975,000		2,093,500
Petrohawk Energy Corporation		7.88		6-1-2015		790,000		805,555
Petrohawk Energy Corporation		10.50		8-1-2014		495,000		495,000
Phillips 66		4.30		4-1-2022		625,000		652,088
Pioneer Natural Resources Company		3.95		7-15-2022		750,000		763,193
Pioneer Natural Resources Company		7.50		1-15-2020		1,220,000		1,515,210
Plains Exploration & Production Company		8.63		10-15-2019		2,885,000		3,151,863
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		3,625,000		3,253,438
Rockies Express Pipeline LLC 144A		6.00		1-15-2019		360,000		335,700
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		6,123,000		5,143,320
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		2,350,000		2,091,500
Sabine Pass Liquefaction LLC 144A		5.63		2-1-2021		850,000		847,875
Sabine Pass Liquefaction LLC 144A		5.63		4-15-2023		850,000		807,500
Sabine Pass Liquefaction LLC 144A		6.25		3-15-2022		1,700,000		1,704,250
Sabine Pass LNG LP		6.50		11-1-2020		4,180,000		4,368,100
Sabine Pass LNG LP		7.50		11-30-2016		4,635,000		5,168,025
Semgroup LP 144A		7.50		6-15-2021		2,650,000		2,822,250
Suburban Propane Partners LP		7.38		3-15-2020		790,000		845,300
Suburban Propane Partners LP		7.38		8-1-2021		309,000		337,583


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Oil, Gas & Consumable Fuels (continued)
Suburban Propane Partners LP		7.50	%	10-1-2018	$	422,000	$	450,485
Tesoro Corporation		9.75		6-1-2019		945,000		1,013,513
Ultra Petroleum Corporation 144A		5.75		12-15-2018		1,135,000		1,174,725
Weatherford International Incorporated		6.35		6-15-2017		650,000		731,971
Western Gas Partners		5.38		6-1-2021		503,000		550,153
Williams Partners LP		3.35		8-15-2022		750,000		711,443

								62,209,822

Financials : 13.20%

Capital Markets : 0.22%
Ace Securities Corporation ±		0.56		8-25-2045		85,472		85,219
Ace Securities Corporation ±		2.79		6-25-2033		554,885		551,946
Goldman Sachs Group Incorporated		5.75		1-24-2022		750,000		848,120

								1,485,285

Commercial Banks : 1.11%
CIT Group Incorporated		5.25		3-15-2018		500,000		532,500
CIT Group Incorporated 144A		5.50		2-15-2019		1,275,000		1,357,875
CIT Group Incorporated 144A		6.63		4-1-2018		550,000		616,000
City National Bank		5.38		7-15-2022		500,000		543,266
Emigrant Bancorp Incorporated 144A		6.25		6-15-2014		3,650,000		3,690,497
HSBC Bank USA		6.00		8-9-2017		650,000		738,691

								7,478,829

Consumer Finance : 5.28%
Ally Financial Incorporated		5.50		2-15-2017		750,000		809,063
Ally Financial Incorporated		6.75		12-1-2014		998,000		1,036,673
Ally Financial Incorporated		7.50		9-15-2020		1,160,000		1,363,000
Ally Financial Incorporated		8.00		3-15-2020		940,000		1,120,950
Ally Financial Incorporated		8.30		2-12-2015		2,055,000		2,186,006
BMC Software Finance Incorporated 144A		8.13		7-15-2021		620,000		640,150
Credit Acceptance Corporation 144A		6.13		2-15-2021		410,000		417,175
Discover Financial Services		5.20		4-27-2022		750,000		798,482
Ford Motor Credit Company LLC		5.00		5-15-2018		650,000		720,760
Ford Motor Credit Company LLC		8.00		12-15-2016		250,000		294,939
General Motors Financial Company Incorporated		6.75		6-1-2018		1,135,000		1,296,738
Homer City Funding LLC (PIK at 9.23%) ¥		8.73		10-1-2026		1,351,973		1,419,572
Nielsen Finance LLC		7.75		10-15-2018		5,350,000		5,751,250
SLM Corporation		7.25		1-25-2022		930,000		985,800
SLM Corporation		8.00		3-25-2020		3,940,000		4,398,025
SLM Corporation		8.45		6-15-2018		1,675,000		1,940,906
Springleaf Finance Corporation		5.40		12-1-2015		1,535,000		1,611,750
Springleaf Finance Corporation		5.75		9-15-2016		1,100,000		1,166,000
Springleaf Finance Corporation		6.00		6-1-2020		2,285,000		2,285,000
Springleaf Finance Corporation		6.50		9-15-2017		200,000		214,500
Springleaf Finance Corporation		6.90		12-15-2017		4,550,000		4,970,875
Springleaf Finance Corporation		7.75		10-1-2021		70,000		75,775

								35,503,389

Diversified Financial Services : 2.52%
Bank of America Corporation		3.70		9-1-2015		650,000		678,019
Bank of America Corporation		5.70		1-24-2022		250,000		285,171
Blackstone Holdings Finance Company LLC 144A		5.88		3-15-2021		750,000		853,685
Citigroup Incorporated		4.50		1-14-2022		250,000		265,427
Citigroup Incorporated		6.00		8-15-2017		650,000		742,916
Denali Borrower/Finance Corporation 144A		5.63		10-15-2020		4,510,000		4,504,363
General Electric Capital Corporation		4.65		10-17-2021		650,000		713,407
ING US Incorporated		5.50		7-15-2022		750,000		832,232
JPMorgan Chase & Company		3.38		5-1-2023		750,000		705,220


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Diversified Financial Services (continued)
Moody’s Corporation		5.50	%	9-1-2020	$	1,302,000	$	1,439,042
MPH Intermediate Holding Company (PIK at 9.13%) 144A¥		8.38		8-1-2018		325,000		334,750
Neuberger Berman Group LLC 144A		5.63		3-15-2020		500,000		526,250
Neuberger Berman Group LLC 144A		5.88		3-15-2022		650,000		682,500
Nuveen Investments Incorporated		5.50		9-15-2015		3,560,000		3,613,400
Nuveen Investments Incorporated 144A		9.13		10-15-2017		730,000		748,250

								16,924,632

Insurance : 0.73%
American International Group Incorporated		4.88		6-1-2022		750,000		817,111
Fidelity & Guaranty Life Holdings Incorporated 144A		6.38		4-1-2021		610,000		642,025
Hartford Financial Services Group Incorporated		5.13		4-15-2022		650,000		717,371
Liberty Mutual Group Incorporated 144A		4.95		5-1-2022		750,000		795,254
ProAssurance Corporation		5.30		11-15-2023		750,000		791,563
Prudential Covered Trust 144A		3.00		9-30-2015		408,000		420,833
W.R. Berkley Corporation		4.63		3-15-2022		650,000		681,580

								4,865,737

Real Estate Management & Development : 0.82%
Hockey Merger Sub 2 Incorporated 144A		7.88		10-1-2021		3,195,000		3,322,800
Onex Corporation 144A		7.75		1-15-2021		2,100,000		2,155,125

								5,477,925

REITs : 2.52%
Alexandria Real Estate Company		4.60		4-1-2022		650,000		668,680
American Tower Corporation		5.90		11-1-2021		650,000		731,484
DuPont Fabros Technology LP		5.88		9-15-2021		4,655,000		4,829,563
Essex Portfolio LP		3.63		8-15-2022		750,000		727,232
Health Care REIT Incorporated		5.25		1-15-2022		650,000		707,150
Omega Healthcare Investors Incorporated		6.75		10-15-2022		1,775,000		1,917,000
Sabra Health Care LP/Sabra Capital Corporation		5.38		6-1-2023		850,000		828,750
Sabra Health Care LP/Sabra Capital Corporation		5.50		2-1-2021		525,000		532,875
The Geo Group Incorporated		5.13		4-1-2023		1,775,000		1,641,875
The Geo Group Incorporated 144A		5.88		1-15-2022		2,640,000		2,620,200
The Geo Group Incorporated		6.63		2-15-2021		365,000		385,988
Ventas Realty LP		4.25		3-1-2022		650,000		667,010
WEA Finance LLC 144A		4.63		5-10-2021		650,000		696,970

								16,954,777

Health Care : 4.55%

Biotechnology : 0.11%
Amgen Incorporated		3.63		5-15-2022		750,000		763,379

Health Care Equipment & Supplies : 0.37%
Boston Scientific Corporation		6.00		1-15-2020		750,000		872,020
Hologic Incorporated		6.25		8-1-2020		1,530,000		1,596,938

								2,468,958

Health Care Providers & Services : 3.30%
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corporation		6.00		10-15-2021		515,000		527,875
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corporation		7.75		2-15-2019		1,350,000		1,451,250
Capella Healthcare Incorporated		9.25		7-1-2017		885,000		946,950
Centene Corporation		5.75		6-1-2017		1,000,000		1,065,000
CHS/Community Health Systems Incorporated 144A		6.88		2-1-2022		1,340,000		1,373,500
CHS/Community Health Systems Incorporated 144A		5.13		8-1-2021		195,000		196,219
Coventry Health Care Incorporated		5.45		6-15-2021		750,000		853,568
DaVita HealthCare Partners Incorporated		5.75		8-15-2022		525,000		537,469


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Health Care Providers & Services (continued)
Express Scripts Holding Company		3.90	%	2-15-2022	$	665,000	$	684,908
HCA Incorporated		6.50		2-15-2020		1,875,000		2,067,188
HCA Incorporated		7.50		11-15-2095		800,000		692,000
HCA Incorporated		8.50		4-15-2019		740,000		780,330
HealthSouth Corporation		5.75		11-1-2024		45,000		44,550
HealthSouth Corporation		7.25		10-1-2018		324,000		344,250
HealthSouth Corporation		8.13		2-15-2020		495,000		539,550
Humana Incorporated		7.20		6-15-2018		750,000		902,613
MPT Operating Partnership LP		6.38		2-15-2022		1,075,000		1,109,938
MPT Operating Partnership LP		6.88		5-1-2021		775,000		825,375
Multiplan Incorporated 144A		9.88		9-1-2018		1,440,000		1,562,400
Select Medical Corporation		6.38		6-1-2021		2,955,000		2,966,081
Tenet Healthcare Corporation 144A		6.00		10-1-2020		1,475,000		1,552,438
Tenet Healthcare Corporation		8.13		4-1-2022		1,090,000		1,189,463

								22,212,915

Health Care Technology : 0.15%
Healthcare Technology Intermediate Incorporated (PIK at 8.13%) 144A¥		7.38		9-1-2018		945,000		976,894

Life Sciences Tools & Services : 0.13%
Life Technologies Corporation		6.00		3-1-2020		750,000		876,678

Pharmaceuticals : 0.49%
Endo Finance Company 144A		5.75		1-15-2022		715,000		713,213
Pinnacle Incorporated 144A		9.50		10-1-2023		500,000		540,000
Salix Pharmaceuticals Incorporated 144A		6.00		1-15-2021		1,185,000		1,235,363
Valeant Pharmaceuticals International Incorporated 144A		5.63		12-1-2021		85,000		87,975
Watson Pharmaceuticals Incorporated		3.25		10-1-2022		750,000		713,423

								3,289,974

Industrials : 4.14%

Aerospace & Defense : 0.20%
TransDigm Group Incorporated		5.50		10-15-2020		550,000		544,500
TransDigm Group Incorporated		7.75		12-15-2018		750,000		802,500

								1,347,000

Airlines : 0.45%
Aviation Capital Group Corporation 144A		6.75		4-6-2021		1,320,000		1,449,324
Aviation Capital Group Corporation 144A		7.13		10-15-2020		720,000		809,942
Delta Air Lines Incorporated		4.75		11-7-2021		688,148		741,479

								3,000,745

Commercial Services & Supplies : 1.61%
ADT Corporation		3.50		7-15-2022		750,000		647,467
ADT Corporation 144A		6.25		10-15-2021		735,000		759,953
Covanta Holding Corporation		6.38		10-1-2022		225,000		232,313
Covanta Holding Corporation		7.25		12-1-2020		230,000		250,125
Interface Incorporated		7.63		12-1-2018		113,000		121,193
Iron Mountain Incorporated		5.75		8-15-2024		4,525,000		4,230,875
Iron Mountain Incorporated		6.00		8-15-2023		2,160,000		2,222,100
Iron Mountain Incorporated		8.38		8-15-2021		759,000		812,130
Penske Truck Leasing Company 144A		3.75		5-11-2017		750,000		792,518
Republic Services Incorporated		3.55		6-1-2022		750,000		744,662

								10,813,336


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Machinery : 0.12%
Columbus McKinnon Corporation		7.88	%	2-1-2019	$	725,000	$	783,000

Professional Services : 0.29%
Interactive Data Corporation		10.25		8-1-2018		1,250,000		1,375,000
Verisk Analytics Incorporated		5.80		5-1-2021		530,000		589,784

								1,964,784

Trading Companies & Distributors : 1.21%
Ashtead Capital Incorporated 144A		6.50		7-15-2022		4,010,000		4,290,700
H&E Equipment Services Incorporated		7.00		9-1-2022		2,565,000		2,783,025
International Lease Finance Corporation 144A		7.13		9-1-2018		75,000		86,813
International Lease Finance Corporation		8.63		9-15-2015		900,000		994,500

								8,155,038

Transportation Infrastructure : 0.26%
Florida East Coast Railway Corporation		8.13		2-1-2017		885,000		923,498
Watco Companies LLC 144A		6.38		4-1-2023		835,000		826,650

								1,750,148

Information Technology : 4.46%

Communications Equipment : 0.41%
Avaya Incorporated		9.75		11-1-2015		575,000		572,125
CyrusOne LP		6.38		11-15-2022		300,000		309,750
Lucent Technologies Incorporated		6.45		3-15-2029		1,285,000		1,156,500
Motorola Solutions Incorporated		3.75		5-15-2022		750,000		744,725

								2,783,100

Computers & Peripherals : 0.57%
Hewlett-Packard Company		4.05		9-15-2022		750,000		755,436
NCR Corporation 144A		5.88		12-15-2021		230,000		238,625
NCR Corporation 144A		6.38		12-15-2023		2,725,000		2,834,000

								3,828,061

Electronic Equipment, Instruments & Components : 1.06%
CDW Financial Corporation		12.54		10-12-2017		101,000		105,798
Jabil Circuit Incorporated		8.25		3-15-2018		5,275,000		6,224,500
L-3 Communications Corporation		4.95		2-15-2021		750,000		805,171

								7,135,469

Internet Software & Services : 0.17%
Equinix Incorporated		7.00		7-15-2021		75,000		82,406
First Data Holdings Incorporated (PIK at 14.50%) 144A¥		14.50		9-24-2019		865,000		800,125
Sophia Holding Finance LP/Sophia Holding Finance Incorporated (PIK at 9.63%) 144A ¥		9.63		12-1-2018		105,000		108,675
Verisign Incorporated		4.63		5-1-2023		170,000		162,775

								1,153,981

IT Services : 1.91%
Audatex North America Incorporated 144A		6.00		6-15-2021		1,400,000		1,459,500
Audatex North America Incorporated 144A		6.13		11-1-2023		420,000		434,700
Fidelity National Information Services Incorporated		7.88		7-15-2020		1,000,000		1,085,334
First Data Corporation 144A		6.75		11-1-2020		900,000		947,250
First Data Corporation 144A		7.38		6-15-2019		625,000		667,188
First Data Corporation 144A		11.75		8-15-2021		240,000		246,600
First Data Corporation 144A		11.75		8-15-2021		2,120,000		2,178,300


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

IT Services (continued)
SunGard Data Systems Incorporated		6.63	%	11-1-2019	$	215,000	$	225,213
SunGard Data Systems Incorporated		7.38		11-15-2018		5,007,000		5,307,420
SunGard Data Systems Incorporated		7.63		11-15-2020		250,000		274,688

								12,826,193

Software : 0.34%
Activision Blizzard Incorporated 144A		5.63		9-15-2021		705,000		729,675
Activision Blizzard Incorporated 144A		6.13		9-15-2023		175,000		182,438
CA Incorporated		5.38		12-1-2019		750,000		849,968
Nuance Communications Incorporated 144A		5.38		8-15-2020		530,000		518,075

								2,280,156

Materials : 1.25%

Chemicals : 0.20%
Chemtura Corporation		5.75		7-15-2021		575,000		586,500
Dow Chemical Company		4.13		11-15-2021		750,000		778,292

								1,364,792

Containers & Packaging : 0.73%
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		185,000		204,425
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		600,000		553,500
Owens-Illinois Incorporated		7.80		5-15-2018		1,295,000		1,515,150
Sealed Air Corporation 144A		6.88		7-15-2033		1,075,000		1,053,500
Sealed Air Corporation 144A		8.38		9-15-2021		1,360,000		1,553,800

								4,880,375

Metals & Mining : 0.09%
Freeport-McMoRan Copper & Gold Incorporated		3.55		3-1-2022		600,000		574,733
Indalex Holdings Corporation (a)(i)(s)		0.00		2-1-2020		3,170,000		0

								574,733

Paper & Forest Products : 0.23%
Georgia-Pacific LLC		8.88		5-15-2031		1,080,000		1,567,207

Telecommunication Services : 9.26%

Diversified Telecommunication Services : 3.83%
CenturyLink Incorporated		5.80		3-15-2022		600,000		591,000
Citizens Communications Company		7.88		1-15-2027		1,805,000		1,759,875
Frontier Communications Corporation		8.13		10-1-2018		845,000		961,188
Frontier Communications Corporation		8.25		4-15-2017		1,040,000		1,202,500
Frontier Communications Corporation		8.50		4-15-2020		525,000		587,344
GCI Incorporated		6.75		6-1-2021		2,330,000		2,260,100
GCI Incorporated		8.63		11-15-2019		5,625,000		5,990,625
Qwest Corporation		7.13		11-15-2043		795,000		758,943
Qwest Corporation		7.25		9-15-2025		1,040,000		1,139,050
Qwest Corporation		7.63		8-3-2021		230,000		244,950
Syniverse Holdings Incorporated		9.13		1-15-2019		5,005,000		5,461,706
TW Telecommunications Holdings Incorporated		5.38		10-1-2022		2,165,000		2,143,350
Windstream Corporation		7.88		11-1-2017		2,330,000		2,662,025

								25,762,656

Wireless Telecommunication Services : 5.43%
Cricket Communications Incorporated		7.75		10-15-2020		1,930,000		2,190,550
Crown Castle International Corporation		5.25		1-15-2023		100,000		99,125
Crown Castle International Corporation		7.13		11-1-2019		70,000		74,900


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Wireless Telecommunication Services (continued)
Crown Castle Towers LLC 144A		6.11	%	1-15-2040	$	750,000	$	861,496
MetroPCS Wireless Incorporated 144A		6.25		4-1-2021		505,000		524,569
MetroPCS Wireless Incorporated		6.63		11-15-2020		3,300,000		3,489,750
MetroPCS Wireless Incorporated 144A		6.63		4-1-2023		505,000		523,938
MetroPCS Wireless Incorporated		7.88		9-1-2018		1,950,000		2,081,625
SBA Telecommunications Corporation		5.63		10-1-2019		160,000		165,000
SBA Telecommunications Corporation		5.75		7-15-2020		2,000,000		2,080,000
SBA Telecommunications Corporation		8.25		8-15-2019		15,000		16,050
Sprint Capital Corporation		6.88		11-15-2028		13,665,000		13,050,075
Sprint Capital Corporation		8.75		3-15-2032		515,000		557,488
Sprint Communications Incorporated		7.00		8-15-2020		1,340,000		1,443,850
Sprint Communications Incorporated 144A		9.00		11-15-2018		325,000		392,438
Sprint Communications Incorporated		11.50		11-15-2021		625,000		818,750
Sprint Corporation 144A		7.13		6-15-2024		960,000		964,800
Sprint Corporation 144A		7.25		9-15-2021		200,000		215,500
Sprint Corporation 144A		7.88		9-15-2023		200,000		213,500
T-Mobile USA Incorporated		6.13		1-15-2022		85,000		86,913
T-Mobile USA Incorporated		6.46		4-28-2019		160,000		168,400
T-Mobile USA Incorporated		6.50		1-15-2024		80,000		81,700
T-Mobile USA Incorporated		6.54		4-28-2020		165,000		174,694
T-Mobile USA Incorporated		6.63		4-28-2021		920,000		968,300
T-Mobile USA Incorporated		6.73		4-28-2022		3,490,000		3,664,500
T-Mobile USA Incorporated		6.84		4-28-2023		945,000		986,344
TW Telecommunications Holdings Incorporated		5.38		10-1-2022		600,000		594,000

								36,488,255

Utilities : 3.04%

Electric Utilities : 1.56%
Energy Future Intermediate Holding Company LLC 144A		6.88		8-15-2017		500,000		517,500
Great Plains Energy Incorporated		4.85		6-1-2021		750,000		807,365
IPALCO Enterprises Incorporated		5.00		5-1-2018		1,075,000		1,134,125
IPALCO Enterprises Incorporated 144A		7.25		4-1-2016		1,925,000		2,112,688
Mirant Mid-Atlantic LLC Series C		10.06		12-30-2028		3,614,632		3,723,071
Otter Tail Corporation (i)		9.00		12-15-2016		1,835,000		2,179,378
PNM Resources Incorporated		9.25		5-15-2015		9,000		9,945

								10,484,072

Gas Utilities : 0.43%
AmeriGas Finance LLC		6.50		5-20-2021		45,000		48,038
AmeriGas Finance LLC		6.75		5-20-2020		1,775,000		1,939,188
AmeriGas Finance LLC		7.00		5-20-2022		795,000		864,563

								2,851,789

Independent Power Producers & Energy Traders : 0.83%
Calpine Corporation 144A		6.00		1-15-2022		425,000		439,875
NRG Energy Incorporated		8.50		6-15-2019		1,615,000		1,715,938
NSG Holdings LLC 144A		7.75		12-15-2025		2,175,000		2,300,013
Reliant Energy Incorporated		9.24		7-2-2017		759,521		751,926
Reliant Energy Incorporated		9.68		7-2-2026		410,000		397,700

								5,605,452

Multi-Utilities : 0.22%
Ameren Illinois Company		9.75		11-15-2018		500,000		667,015
CMS Energy Corporation		5.05		3-15-2022		750,000		831,479

								1,498,494


Total Corporate Bonds and Notes (Cost $429,912,637)								445,488,261


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Foreign Corporate Bonds and Notes @: 3.83%

Consumer Discretionary : 0.43%

Auto Components : 0.03%
Gestamp Funding Luxembourg SA (EUR)	5.88	%	5-31-2020	135,000	$	192,089

Automobiles : 0.10%
Jaguar Land Rover plc (GBP)	8.25		3-15-2020	300,000		559,826
Servus Luxembourg Holding SCA (EUR) 144A	7.75		6-15-2018	100,000		142,223

						702,049

Media : 0.30%
Arqiva Broadcast Finance plc (GBP) 144A	9.50		3-31-2020	100,000		182,884
Telenet Finance V Luxembourg SCA (EUR)	6.25		8-15-2022	400,000		580,446
Unitymedia Hessen GmbH & Company (EUR) 144A	5.13		1-21-2023	500,000		689,523
Ziggo Holding BV (EUR)	3.63		3-27-2020	400,000		545,711

						1,998,564

Consumer Staples : 0.40%

Food & Staples Retailing : 0.25%
Casino Guichard Perrachon SA (EUR)	4.73		5-26-2021	500,000		768,192
Foodcorp Limited (EUR)	8.75		3-1-2018	621,000		907,687

						1,675,879

Food Products : 0.15%
BRF SA (BRL) 144A	7.75		5-22-2018	3,100,000		1,035,367

Financials : 2.33%

Commercial Banks : 1.96%
Eurofima (AUD)	6.25		12-28-2018	2,450,000		2,354,617
European Investment Bank (AUD)	6.50		8-7-2019	4,880,000		4,750,627
International Bank for Reconstruction & Development (AUD)	5.75		10-1-2020	950,000		902,101
KfW (AUD)	6.25		5-19-2021	1,210,000		1,175,048
KfW (AUD)	6.38		2-17-2015	3,319,000		2,751,106
Sberbank Rossii (NZD)	7.00		1-31-2016	44,000,000		1,218,864

						13,152,363

Consumer Finance : 0.09%
Fiat Industrial SpA (EUR)	6.25		3-9-2018	400,000		608,021

Diversified Financial Services : 0.28%
General Electric Capital Corporation (NZD)	4.25		1-17-2018	2,000,000		1,582,198
Numericable Finance & Company SCA (EUR)	12.38		2-15-2019	195,000		319,672

						1,901,870

Industrials : 0.35%

Building Products : 0.08%
Heidelbergcement AG (EUR)	8.50		10-31-2019	330,000		562,547

Trading Companies & Distributors : 0.04%
Rexel SA (EUR)	7.00		12-17-2018	200,000		295,365

Transportation Infrastructure : 0.23%
Heathrow Funding Limited (EUR)	4.60		2-15-2020	1,000,000		1,512,804


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Information Technology : 0.09%

IT Services : 0.05%
Interxion Holding NV (EUR) 144A	6.00	%	7-15-2020		200,000	$	287,009

Software : 0.04%
Teamsystem Holdings SpA (EUR) 144A	7.38		5-15-2020		200,000		280,530

Telecommunication Services : 0.12%

Diversified Telecommunication Services : 0.12%
Telefonica Emisiones Company (EUR)	4.69		11-11-2019		300,000		451,358
Virgin Media Finance plc (GBP)	8.88		10-15-2019		201,000		358,510

							809,868

Utilities : 0.11%

Water Utilities : 0.11%
Befesa Zinc Aser SA (EUR)	8.88		5-15-2018		500,000		726,275


Total Foreign Corporate Bonds and Notes (Cost $25,262,599)							25,740,600


Foreign Government Bonds @: 24.42%
Australia (AUD)	3.25		4-21-2025		3,350,000		2,708,881
Brazil (BRL)	10.00		1-1-2023		49,500,000		17,251,804
Chile (CLP)	5.50		8-5-2020		940,000,000		1,696,644
Colombia (COP)	7.75		4-14-2021		5,250,000,000		2,812,605
Hungary (HUF)	6.75		11-24-2017		2,375,000,000		10,905,878
Indonesia (IDR)	7.38		9-15-2016		120,100,000,000		9,659,148
Korea (KRW)	5.25		3-10-2027		2,830,000,000		3,053,785
Malaysia (MYR)	3.26		3-1-2018		22,500,000		6,603,866
Malaysia (MYR)	4.26		9-15-2016		21,100,000		6,454,109
Mexico (MXN)	4.75		6-14-2018		84,130,000		6,164,262
Mexico (MXN)	7.25		12-15-2016		109,540,000		8,811,024
Mexico (MXN)	7.75		5-29-2031		34,450,000		2,644,907
New Zealand (NZD)	5.50		4-15-2023		5,625,000		4,857,666
Nigeria (NGN)	15.10		4-27-2017		500,000,000		3,178,409
Poland (PLN)	4.00		10-25-2023		43,850,000		13,146,653
Queensland Treasury (AUD)	5.75		7-22-2024		4,100,000		3,911,283
Republic of South Africa (ZAR)	6.50		2-28-2041		67,200,000		4,319,330
Republic of South Africa (ZAR)	7.75		2-28-2023		89,400,000		7,544,470
Romania (RON)	6.00		4-30-2016		11,750,000		3,665,893
Russia (RUB)	7.00		1-25-2023		29,000,000		762,312
Russia (RUB)	7.50		3-15-2018		172,600,000		4,876,183
Russia (RUB)	7.60		7-20-2022		354,400,000		9,703,940
State of New South Wales Australia (AUD)	5.00		8-20-2024		3,900,000		3,547,985
Thailand (THB)	3.25		6-16-2017		325,000,000		9,956,165
Turkey (TRY)	6.30		2-14-2018		675,000		257,089
Turkey (TRY)	8.30		6-20-2018		18,200,000		7,406,883
Turkey (TRY)	9.00		3-8-2017		19,350,000		8,225,847

Total Foreign Government Bonds (Cost $183,751,576)							164,127,021

Municipal Obligations : 0.05%

New York : 0.05%
Build New York City Resource Corporation Bronx Charter School for Excellence Project Series B (Education Revenue)	5.00		4-1-2018	$	345,000		337,124


Total Municipal Obligations (Cost $345,000)							337,124

Non-Agency Mortgage Backed Securities : 7.53%
American General Mortgage Loan Series 2009 Class 1-A6 144A±	5.75		9-25-2048		51,884		51,872
American General Mortgage Loan Series 2010 Class 1A-A3 144A±	5.65		3-25-2058		460,000		475,453


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Non-Agency Mortgage Backed Securities (continued)
American Home Mortgage Assets Series 2006-2 Class 1A1 ±		1.10	%	9-25-2046	$	3,629,932	$	2,521,086
Argent Securities Incorporated Series 2004-W5 Class AV3B ±		1.06		4-25-2034		91,532		89,176
Asset Backed Funding Certificates Series 2003-AHL1 Class A1		4.18		3-25-2033		280,607		276,425
Banc of America Commercial Mortgage Securities Incorporated Series 2006-03 Class AM ±		5.85		7-10-2044		1,340,000		1,396,547
Banc of America Commercial Mortgage Securities Incorporated Series 2008-1 Class AM ±		6.26		2-10-2051		550,000		625,703
Banc of America Commercial Mortgage Trust Series 2006-5 Class AM		5.45		9-10-2047		750,000		805,538
Banc of America Commercial Mortgage Trust Series 2007-3 Class AM ±		5.62		6-10-2049		430,000		474,244
Banc of America Funding Corporation Series 2005 Class 5-1A1		5.50		9-25-2035		591,488		618,826
Banc of America Funding Corporation Series 2009 Class R6-3A1 144A±		2.15		1-26-2037		56,589		56,352
Banc of America Mortgage Securities Series 2003 Class A-3A1 ±		2.81		2-25-2033		181,942		179,780
Bayview Financial Acquisition Trust Series 2005-B Class 1A6		5.21		4-28-2039		4,029		4,011
Bear Stearns Commercial Mortgage Series 2007-PW17 Class AM ±		5.89		6-11-2050		318,000		359,971
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AM ±		6.08		6-11-2050		100,000		114,176
Carrington Mortgage Loan Trust Series 2005-FRE1 Class A5 ±		0.44		12-25-2035		29,611		29,490
Centex Home Equity Series 2002-A Class AF6		5.54		1-25-2032		317,133		316,512
Centex Home Equity Series 2002-D Class AF6 ±		4.66		12-25-2032		113,713		115,265
Centex Home Equity Series 2003-C Class AF4		5.46		4-25-2032		36,140		36,216
Centex Home Equity Series 2004-B Class AF6		4.69		3-25-2034		274,873		282,948
Chase Funding Mortgage Loan Series 2003 Class 5-1A4		4.40		2-25-2030		48,118		48,038
Citigroup Commercial Mortgage Trust Series 2006 Class C4 ±		5.78		3-15-2049		680,000		738,382
Citigroup Commercial Mortgage Trust Series 2007-C6 Class AM ±		5.71		12-10-2049		450,000		499,549
Citigroup Commercial Mortgage Trust Series 2012-GC8 Class C 144A±		4.88		9-10-2045		1,000,000		1,026,862
Citigroup Mortgage Loan Trust Incorporated Series 2003-HE3 Class A3 ±		0.54		12-25-2033		100,040		95,126
Commercial Mortgage Trust Series 2012-CR2 Class C ±		4.86		8-15-2045		1,000,000		1,020,421
Commercial Mortgage Trust Series 2013-FL3 Class B 144A±		2.31		10-13-2028		1,000,000		1,000,739
Countrywide Asset Backed Certificates Series 2003-5 Class AF5		5.77		2-25-2034		97,099		100,366
Countrywide Home Loans Series 2003-48 Class 2A2 ±		2.61		10-25-2033		190,756		191,420
Credit Suisse Commercial Mortgage Trust Series 2006-C3 Class AM ±		5.79		6-15-2038		1,045,000		1,132,934
Credit Suisse Commercial Mortgage Trust Series 2006-C4 Class AM		5.51		9-15-2039		1,500,000		1,614,324
Credit Suisse Commercial Mortgage Trust Series 2006-C5 Class AM		5.34		12-15-2039		1,000,000		1,076,484
Credit Suisse First Boston Mortgage Securities Series 2002-AR25 Class 1A1 ±		2.19		9-25-2032		650,135		653,767
Credit Suisse First Boston Mortgage Securities Series 2003-AR15 Class 3A1 ±		2.80		6-25-2033		236,809		235,699
Credit Suisse First Boston Mortgage Securities Series 2003-AR9 Class 2A2 ±		2.28		3-25-2033		54,491		55,326
Credit-Based Asset Servicing & Securitization LLC Series 2005-CB2 Class M1 ±		0.82		4-25-2036		281,774		277,251
Equity One Asset Backed Securities Series 2004-2 Class AF4 ±		4.62		7-25-2034		423,501		432,720
First Franklin Mortgage Loan Assets Series 2005-FT9 Class A3 ±		0.44		10-25-2035		3,969		3,968
First Horizon Mortgage Pass Through Series 2004-AR1 Class 1A1 ±		2.59		2-25-2034		473,979		473,660
First Horizon Mortgage Pass Through Series 2004-AR4 Class 3A1 ±		2.59		8-25-2034		19,032		18,621
Global Mortgage Securitization Limited Series 2004-A Class A2 144A±		0.49		11-25-2032		484,397		454,528
GMAC Mortgage Corporation Loan Series 2003-GH1 Class A5		5.60		7-25-2034		117,661		119,323
Greenpoint Mortgage Funding Trust Series 2005-HE4 Class 1A1 ±		0.60		7-25-2030		31,090		30,043
Greenwich Capital Commercial Funding Corporation Series 2006-GG7 Class AM ±		5.82		7-10-2038		2,570,000		2,811,675
Greenwich Capital Commercial Funding Corporation Series 2007-GG11 Class A4		5.74		12-10-2049		475,000		531,547
GS Mortgage Securities Trust Series 2006-GG6 Class AM ±		5.62		4-10-2038		835,000		904,041
GS Mortgage Securities Trust Series 2007-GG10 Class A4 ±		5.81		8-10-2045		1,000,000		1,102,574
GS Mortgage Securities Trust Series 2010-C1 Class X ±144A(c)		1.52		8-10-2043		6,483,313		447,180
GS Mortgage Securities Trust Series 2012-GCJ7 Class XA ±(c)		2.59		5-10-2045		4,890,117		629,172
GSAA Home Equity Trust Series 2004-5 Class AF5 ±		4.77		6-25-2034		52,713		55,264
GSMPS Mortgage Loan Trust Series 2005-AHL Class M1 ±		0.59		4-25-2035		20,505		19,810
GSMPS Mortgage Loan Trust Series 2006-1 Class A1 144A±		0.46		3-25-2035		210,793		204,229
GSMPS Mortgage Loan Trust Series 2006-SEA1 Class A 144A±		0.46		5-25-2036		306,643		300,029
Home Equity Asset Trust Series 2006-3 Class 2A3 ±		0.34		7-25-2036		2,015		2,013


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Non-Agency Mortgage Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Trust Series 2007-CB18 Class AM ±		5.47	%	6-12-2047	$	875,000	$	967,460
JPMorgan Chase Commercial Mortgage Trust Series 2007-CB20 Class AM ±		5.87		2-12-2051		785,000		892,377
JPMorgan Mortgage Trust Series 2004-A3 Class 2A1 ±		2.71		7-25-2034		88,263		88,282
JPMorgan Mortgage Trust Series 2004-A3 Series 3A3 ±		4.70		7-25-2034		110,700		111,212
JPMorgan Mortgage Trust Series 2005-A3 Class 11A2 ±		3.12		6-25-2035		504,989		509,169
JPMorgan Mortgage Trust Series 2009-7 Class 2A1 144A±		6.00		2-27-2037		81,529		84,697
JPMorgan Mortgage Trust Series 2009-7 Class 5A1 144A±		6.00		2-27-2037		400,209		418,393
Lehman Brothers-UBS Commercial Mortgage Trust Series 2007-C1 Class AM		5.46		2-15-2040		750,000		825,798
Lehman Brothers-UBS Commercial Mortgage Trust Series 2008-C1 Class AM ±		6.16		4-15-2041		820,000		942,905
Lehman XS Trust Series 2006-18N Class A5A ±(i)		0.33		12-25-2036		3,086,566		2,214,444
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 3A1 ±		2.83		12-25-2033		676,617		679,367
MASTR Adjustable Rate Mortgage Trust Series 2003-6 Class 4A2 ±		4.53		1-25-2034		39,368		39,340
MASTR Adjustable Rate Mortgage Trust Series 2004-13 Class 3A7 ±		2.62		11-21-2034		46,649		47,676
MASTR Alternative Loans Trust Series 2005-1 Class 5A1		5.50		1-25-2020		91,794		93,460
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM		5.20		12-12-2049		340,000		371,477
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2007-9 Class A4		5.70		9-12-2049		829,000		927,815
Merrill Lynch Mortgage Trust Series 2005-A8 Class A1B3 ±		5.25		8-25-2036		120,000		124,071
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM ±		5.69		5-12-2039		565,000		614,066
Mesa Trust Asset Backed Certificates Series 2001-5 Class A 144A±		0.96		12-25-2031		23,244		21,608
Mid State Trust Series 11 Class A1		4.86		7-15-2038		276,125		294,564
MLCC Mortgage Investors Incorporated Series 2003-G Class A2 ±		1.03		1-25-2029		194,853		194,664
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C5 Class XA ±144A(c)		1.88		8-15-2045		5,888,266		553,332
Morgan Stanley Capital I Trust Series 2004-NC1 Class M1 ±		1.21		12-27-2033		730,020		703,298
Morgan Stanley Capital I Trust Series 2005-HQ6 Class A4B		5.04		8-13-2042		650,000		682,775
Morgan Stanley Capital I Trust Series 2006-HQ10 Class AM		5.36		11-12-2041		500,000		550,561
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AJ ±		5.79		7-12-2044		1,000,000		1,073,779
Morgan Stanley Capital I Trust Series 2006-HQ9 Class AM ±		5.77		7-12-2044		25,000		27,505
Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM		5.37		12-15-2043		500,000		546,795
Morgan Stanley Capital I Trust Series 2007-HQ13 Class A3		5.57		12-15-2044		1,355,000		1,466,950
Morgan Stanley Capital I Trust Series 2010-GG10 Class A4B 144A±		5.81		8-15-2045		615,000		675,629
Morgan Stanley Capital I Trust Series 2010-R5 Class 3A 144A±		0.47		3-26-2037		2,930		2,925
Morgan Stanley Capital I Trust Series 2012-C4 Class C 144A±		5.53		3-15-2045		900,000		969,790
New Century Home Equity Loan Trust Series 2004-3 Class M1 ±		1.09		11-25-2034		1,165,049		1,073,029
New Century Home Equity Loan Trust Series 2005-1 Class A1MZ ±		0.74		3-25-2035		62,015		60,689
Provident Funding Mortgage Loan Series 2005-1 Class 2A1 ±		2.66		5-25-2035		73,700		75,344
RBSSP Resecuritization Trust Series 2010-3 Class 4A1 144A±		3.14		12-26-2035		47,965		48,156
Renaissance Home Equity Loan Trust Series 2004-4 Class AF4		4.88		2-25-2035		727,909		737,446
Residential Asset Mortgage Products Incorporated Series 2006-EFC1 Class A2 ±		0.36		2-25-2036		131,971		131,137
Residential Asset Securities Corporation Series 2004-KS3 Class AI4 ±		3.77		1-25-2032		208,754		209,518
Residential Funding Mortgage Securities I Series 2004-S9 Class 1A19		5.50		12-25-2034		54,902		54,843
Saxon Asset Securities Trust Series 2002-1 Class AF5 ±		6.76		12-25-2030		187,283		185,663
Saxon Asset Securities Trust Series 2003-1 Class AF7		4.03		6-25-2033		727,375		738,052
Sequoia Mortgage Trust Series 2003-1 Class 1A ±		0.92		4-20-2033		32,201		32,046
Structured Adjustable Rate Mortgage Loan Trust Series 2004-2 Class 2A ±		2.57		3-25-2034		89,833		90,499
Structured Asset Investment Loan Trust Series 2005-4 Class M1 ±		0.76		5-25-2035		35,099		34,975
Structured Asset Securities Corporation Series 2002-9 Class A2 ±		0.76		10-25-2027		120,448		120,541
Terwin Mortgage Trust Series 2003-6HE Class A3 ±		1.30		11-25-2033		312,747		311,408
Vendee Mortgage Trust Series 2003-2 Class IO ±(c)		0.82		5-15-2033		7,546,864		200,915
Wachovia Bank Commercial Mortgage Trust Series 2006-C23 Class AM ±		5.47		1-15-2045		1,220,000		1,317,541
Washington Mutual Mortgage Trust Series 2004-RA4 Class 3A		7.50		7-25-2034		290,526		303,998

Total Non-Agency Mortgage Backed Securities (Cost $47,968,012)								50,578,660


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Dividend yield				Shares		Value

Preferred Stocks : 0.18%

Financials : 0.18%

Diversified Financial Services : 0.18%
GMAC Capital Trust I ±		8.13	%			44,400	$	1,215,672

Total Preferred Stocks (Cost $1,130,339)								1,215,672


	Interest rate			Maturity date	Principal

Term Loans : 17.86%
ADS Waste Holdings Incorporated		4.25		10-9-2019	$	1,074,265		1,077,283
Advantage Sales & Marketing LLC		8.25		6-17-2018		452,143		458,080
Albertson’s LLC		4.75		3-21-2019		251,432		253,786
Alliance Laundry Systems LLC		4.25		12-10-2018		1,722,156		1,730,767
Alliance Laundry Systems LLC <		9.50		12-10-2019		2,218,122		2,241,700
Allison Transmission Incorporated		3.16		8-7-2017		202,120		203,341
Allison Transmission Incorporated <		3.75		8-23-2019		3,436,898		3,444,769
American Capital Holdings Incorporated		4.00		8-22-2016		1,401,375		1,408,382
Applied Systems Incorporated <		0.00		1-24-2022		325,000		332,313
Arris Group Incorporated		3.50		4-17-2020		756,886		755,312
Capital Automotive LP		4.00		4-10-2019		3,174,993		3,196,392
Capital Automotive LP		6.00		4-30-2020		1,460,000		1,509,275
CBAC Borrower LLC		8.25		7-2-2020		1,200,000		1,238,256
CCC Information Services Incorporated		4.00		12-20-2019		594,992		596,296
CCM Merger Incorporated		5.00		3-1-2017		2,760,817		2,798,779
CDW LLC		3.25		4-29-2020		893,500		893,777
Centaur LLC		5.25		2-20-2019		134,162		135,378
Centaur LLC		8.75		2-20-2020		1,850,000		1,889,313
Covanta Energy Holdings		3.50		3-28-2019		2,554,500		2,565,689
Cricket Communications Incorporated		4.75		10-10-2019		297,000		297,558
Crown Castle Operating Company		3.25		1-31-2021		6,517,651		6,537,204
DaVita HealthCare Partners Incorporated		4.00		11-1-2019		1,129,701		1,136,988
Dell Incorporated		4.50		4-29-2020		8,427,700		8,384,634
DineEquity Incorporated		3.75		10-19-2017		1,401,951		1,409,843
Dunkin’ Brands Incorporated		3.75		2-11-2020		1,557,492		1,558,706
Entercom Radio LLC		4.00		11-23-2018		1,271,460		1,284,174
Federal-Mogul Corporation		2.11		12-27-2014		2,469,296		2,450,776
Federal-Mogul Corporation		2.11		12-27-2015		3,675,594		3,648,027
Focus Brands Incorporated		4.27		2-21-2018		807,499		808,509
Focus Brands Incorporated		10.25		8-21-2018		2,023,863		2,061,810
Genesys Telecommunication Holdings U.S. Incorporated		4.00		2-8-2020		420,313		417,160
Goodyear Tire & Rubber Company		4.75		4-30-2019		5,500,000		5,550,105
HHI Holdings LLC		5.00		10-5-2018		1,945,977		1,959,755
Hub International Limited		4.75		10-2-2020		278,303		281,261
Interactive Data Corporation		3.75		2-11-2018		3,333,746		3,343,747
Kronos Incorporated		4.50		10-30-2019		485,895		490,147
Learfield Communications Incorporated		8.75		10-9-2021		100,000		102,000
Level 3 Financing Incorporated		4.00		1-15-2020		1,700,000		1,710,268
LIN Television Corporation		4.00		12-21-2018		740,568		743,035
LPL Holdings Incorporated		3.25		3-29-2019		3,709,221		3,708,442
LTS Buyer LLC		8.00		4-12-2021		31,625		32,218
MedAssets Incorporated		4.00		12-12-2019		250,489		251,178
MGM Resorts International		3.50		12-20-2019		1,362,180		1,361,894
Mission Broadcasting Incorporated		3.75		10-1-2020		128,543		128,943
Nexstar Broadcasting Incorporated		3.75		10-1-2020		145,770		146,223
Nielsen Finance LLC Company		2.91		5-2-2016		481,099		482,152
Novelis Incorporated		3.75		3-10-2017		977,441		982,602
nTelos Incorporated		5.75		11-9-2019		1,318,779		1,321,667
Nusil Technology LLC		5.25		4-7-2017		394,550		390,234
Philadelphia Energy Solutions LLC		6.25		4-4-2018		2,853,438		2,569,891
Prestige Brands Incorporated		3.79		1-31-2019		146,496		147,381
SBA Senior Finance II LLC		3.75		6-30-2018		725,744		728,103
SBA Senior Finance II LLC		3.75		9-20-2019		150,097		150,848
Sedgwick CMS Holdings Incorporated		8.00		12-12-2018		1,600,000		1,626,000


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Term Loans (continued)
Spin Holdco Incorporated <		4.25	%	11-14-2019	$	1,667,225	$	1,681,113
Springleaf Finance Corporation		4.75		9-30-2019		470,000		475,372
Syniverse Holdings Incorporated		4.00		4-23-2019		169,666		170,472
Syniverse Holdings Incorporated		4.00		4-23-2019		959,826		964,030
Tallgrass Operations LLC		4.25		11-13-2018		1,731,544		1,743,664
Telesat Holdings Incorporated		3.50		3-28-2019		2,610,399		2,624,260
Tempur-Pedic International Incorporated		3.50		3-18-2020		938,994		940,872
Texas Competitive Electric Holdings LLC		3.73		10-10-2014		20,096,983		14,115,920
Transdigm Group Incorporated		3.75		2-28-2020		3,456,004		3,477,189
TWCC Holdings Corporation		7.00		6-26-2020		200,000		201,500
United Surgical Partners International Incorporated		4.25		4-19-2017		1,912,247		1,920,622
United Surgical Partners International Incorporated		4.75		4-3-2019		1,049,036		1,054,607
Valeant Pharmaceuticals International Incorporated		3.75		2-13-2019		1,674,553		1,686,208
Valeant Pharmaceuticals International Incorporated		3.75		12-11-2019		200,054		201,413
Vertafore Incorporated		9.75		10-29-2017		510,000		518,609
W3 Company		9.25		9-13-2020		289,275		292,168
WASH Multifamily Laundry Systems LLC		4.50		2-21-2019		1,657,475		1,663,691
Wendy’s International Incorporated		3.25		5-15-2019		1,348,114		1,351,768

Total Term Loans (Cost $124,454,499)								120,015,849

Yankee Corporate Bonds and Notes : 7.83%

Consumer Discretionary : 0.57%

Diversified Consumer Services : 0.11%
Anglo American Capital Company 144A		4.13		9-27-2022		750,000		722,228

Media : 0.46%
Grupo Televisa SA		6.00		5-15-2018		750,000		842,167
Myriad International Holdings BV		6.00		7-18-2020		500,000		525,000
Myriad International Holdings BV 144A		6.38		7-28-2017		750,000		825,000
Videotron Limited		9.13		4-15-2018		178,000		186,010
WPP Finance 2010		3.63		9-7-2022		750,000		739,390

								3,117,567

Consumer Staples : 0.34%

Beverages : 0.12%
Pernod Ricard SA 144A		4.45		1-15-2022		760,000		788,336

Food Products : 0.11%
BRF SA 144A		5.88		6-6-2022		750,000		742,500

Tobacco : 0.11%
BAT International Finance plc 144A		3.25		6-7-2022		750,000		737,082

Energy : 1.10%

Energy Equipment & Services : 0.12%
Ensco plc		4.70		3-15-2021		750,000		808,186

Oil, Gas & Consumable Fuels : 0.98%
Griffin Coal Mining Company Limited 144A(s)		0.00		12-1-2016		1,685,411		1,247,204
Griffin Coal Mining Company Limited (s)		0.00		12-1-2016		137,792		112,989
Lukoil International Finance BV		4.56		4-24-2023		1,400,000		1,291,500
Petrobras International Finance Company		5.38		1-27-2021		670,000		662,162
Petroleos Mexicanos		4.88		1-24-2022		750,000		763,649
Petroleos Mexicanos 144A		7.19		9-12-2024		18,450,000		1,310,150
Petroplus International Finance Company		5.75		1-20-2020		650,000		671,062
Woodside Finance Limited 144A		8.75		3-1-2019		405,000		517,714

								6,576,430


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Financials : 1.67%

Commercial Banks : 0.79%
Banco del Estado de Chile 144A		3.88	%	2-8-2022	$	650,000	$	633,624
Export Import Bank of Korea		5.00		4-11-2022		750,000		829,448
ITAU Unibanco Holding SA		5.13		5-13-2023		1,650,000		1,509,750
Macquarie Bank Limited 144A		5.00		2-22-2017		750,000		816,549
Royal Bank of Scotland plc		4.38		3-16-2016		750,000		801,969
Standard Chartered Bank 144A		6.40		9-26-2017		650,000		738,036

								5,329,376

Consumer Finance : 0.58%
Wind Acquisition Finance SpA 144A		11.75		7-15-2017		3,660,000		3,861,300

Diversified Financial Services : 0.30%
Corporación Andina de Fomento		4.38		6-15-2022		958,000		969,714
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		415,000		426,413
Preferred Term Securities XII Limited (i)(s)		0.00		12-24-2033		635,000		6
Tyco Electronics Group SA		3.50		2-3-2022		625,000		610,093

								2,006,226

Health Care : 0.31%

Pharmaceuticals : 0.31%
VPII Escrow Corporation 144A		6.75		8-15-2018		680,000		745,450
VPII Escrow Corporation 144A		7.50		7-15-2021		1,210,000		1,347,638

								2,093,088

Industrials : 0.17%

Commercial Services & Supplies : 0.05%
Iron Mountain Incorporated		6.75		10-15-2018		250,000		340,125

Road & Rail : 0.12%
Canadian Pacific Railway Company		4.50		1-15-2022		750,000		798,965

Information Technology : 0.68%

Communications Equipment : 0.11%
Ericsson LM		4.13		5-15-2022		750,000		754,263

Computers & Peripherals : 0.45%
Seagate Technology HDD Holdings		6.80		10-1-2016		650,000		731,250
Seagate Technology HDD Holdings		6.88		5-1-2020		1,035,000		1,115,213
Seagate Technology HDD Holdings		7.00		11-1-2021		1,050,000		1,161,563

								3,008,026

Internet Software & Services : 0.12%
Tencent Holdings Limited 144A		4.63		12-12-2016		750,000		803,633

Materials : 0.79%

Metals & Mining : 0.61%
ArcelorMittal		5.00		2-25-2017		725,000		761,250
Novelis Incorporated		8.38		12-15-2017		550,000		587,125
Novelis Incorporated		8.75		12-15-2020		725,000		804,750
Vale Overseas Limited		4.38		1-11-2022		750,000		724,379
Vedanta Resources plc 144A		6.00		1-31-2019		1,300,000		1,231,750

								4,109,254


Portfolio of investments — January 31, 2014 (unaudited)		Wells Fargo Advantage Multi-Sector Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Paper & Forest Products : 0.18%
Sappi Limited 144A		7.50	%	6-15-2032	$	1,560,000	$	1,220,700

Telecommunication Services : 2.10%

Diversified Telecommunication Services : 1.87%
Intelsat Bermuda Limited 144A		7.75		6-1-2021		1,195,000		1,281,638
Intelsat Bermuda Limited 144A		8.13		6-1-2023		530,000		573,725
Intelsat Jackson Holdings SA 144A		5.50		8-1-2023		2,950,000		2,817,250
Intelsat Jackson Holdings SA		6.63		12-15-2022		590,000		609,175
Intelsat Jackson Holdings SA		7.25		4-1-2019		1,820,000		1,956,500
Intelsat Jackson Holdings SA		7.25		10-15-2020		1,775,000		1,925,875
Intelsat Jackson Holdings SA		7.50		4-1-2021		525,000		578,156
Intelsat Jackson Holdings SA		8.50		11-1-2019		1,400,000		1,519,000
Qtel International Finance Limited		5.00		10-19-2025		300,000		302,250
Sable International Finance Limited		7.75		2-15-2017		350,000		364,700
Virgin Media Finance plc		6.50		1-15-2018		650,000		672,750

								12,601,019

Wireless Telecommunication Services : 0.23%
Globo Communicacoes Participacoes SA 144A		4.88		4-11-2022		750,000		734,813
Telesat Canada Incorporated 144A		6.00		5-15-2017		775,000		804,063

								1,538,876

Utilities : 0.10%

Electric Utilities : 0.10%
Comision Federal de Electricidad 144A		4.88		5-26-2021		650,000		669,500

Total Yankee Corporate Bonds and Notes (Cost $51,941,432)								52,626,680


	Yield				Shares

Short-Term Investments : 2.54%

Investment Companies : 2.54%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.07				17,038,790		17,038,790

Total Short-Term Investments (Cost $17,038,790)								17,038,790


Total investments in securities (Cost $900,240,765)*	133.28	%		895,671,598
Other assets and liabilities, net	(33.28	)		(223,628,273	)

Total net assets	100.00	%	$	672,043,325

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

144A

Security that may be resold to “qualified institutional buyers” under Rule 144A or security offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(c)

Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

†	Non-income-earning security

(a)

Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)

Illiquid security

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

(s)

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

@	Foreign bond principal is denominated in local currency.


Wells Fargo Advantage Multi-Sector Income Fund		Portfolio of investments — January 31, 2014 (unaudited)

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

(l)

Investment in an affiliate

(u)

Rate shown is the 7-day annualized yield at period end.

##	All or a portion of this security has been segregated for unfunded term loans.

*	Cost for federal income tax purposes is $904,641,564 and unrealized appreciation (depreciation) consists of:

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

Notes to Portfolio of investments – January 31, 2014 (unaudited)

Securities valuation

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

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Short-term securities, with maturities of 60 days or less at time of purchase, generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

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

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

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

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

Foreign currency translation

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

The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are recorded with net realized and unrealized gains or losses from investments. Gains and losses from certain foreign currency transactions are treated as ordinary income for U.S. federal income tax purposes.

Forward foreign currency contracts

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

When-issued transactions

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

Term loans

The Fund may invest in term loans. The Fund begins earning interest when the loans are funded. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. The Fund assumes the credit risk of the borrower and there could be potential loss to the Fund in the event of default by the borrower.

As of January 31, 2014, the Fund had unfunded loan commitments of $2,024,263.

Fair valuation measurements

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


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

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

As of January 31, 2014, the inputs used in valuing investments in securities were as follows:


Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	16,889,666	$	0	$	16,889,666

Asset-backed securities		0		710,913		0		710,913
Equity securities
Common stocks		902,362		0		0		902,362
Preferred stocks		1,215,672		0		0		1,215,672
Corporate bonds and notes		0		445,488,261		0		445,488,261
Foreign corporate bonds and notes		0		25,740,600		0		25,740,600
Foreign government bonds		0		164,127,021		0		164,127,021
Municipal obligations		0		337,124		0		337,124
Non agency mortgage-backed securities		0		50,578,660		0		50,578,660
Term loans		0		108,511,762		11,504,087		120,015,849
Yankee corporate bonds and notes		0		52,626,680		0		52,626,680
Short-term investments
Investment companies		17,038,790		0		0		17,038,790

	$	19,156,824	$	865,010,687	$	11,504,087	$	895,671,598

As of January 31, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:


Other financial instruments	Quoted prices (Level 1)		Other significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)		Total
Forward foreign currency contracts	$	0	$	(178,493	) *	$	0	$	(178,493	)

*	Amount represents the net unrealized losses.

Transfers in and transfers out are recognized at the end of the reporting period. For the three months ended January 31, 2014, the Fund did not have any transfers into/out of Level 1 or Level 2.

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


	Term Loans
Balance as of October 31, 2013	$	13,055,687
Accrued discounts (premiums)		3,150
Realized gains (losses)		58,732
Change in unrealized gains (losses)		(24,045	)
Purchases		1,119,250
Sales		(2,948,183	)
Transfers into Level 3		5,072,697
Transfers out of Level 3		(4,833,201	)

Balance as of January 31, 2014	$	11,504,087

Change in unrealized gains (losses) relating to securities still held at January 31, 2014	$	9,043

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

Derivative transactions

As of January 31, 2014, the Fund entered into forward foreign currency exchange contracts for economic hedging purposes. At January 31, 2014, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:


Exchange date	Counterparty	Contracts to receive	U.S. value at January 31, 2014		In exchange for U.S. $		Unrealized losses
2-27-2014	State Street Bank	27,500,000 MYR	$	8,206,361	$	8,512,614	$	(306,253	)
3-10-2014	State Street Bank	21,000,000 PLN		6,647,320		6,800,892		(153,572	)

Forward foreign currency contracts to sell:


Exchange Date	Counterparty	Contracts to deliver	U.S. value at January 31, 2014		In exchange for U.S. $		Unrealized gains (losses)
2-26-2014	State Street Bank	89,725,000 MXN	$	6,697,345	$	6,818,268	$	120,923
3-24-2014	State Street Bank	168,000,000 RUB		4,731,415		4,895,675		164,260
4-1-2014	State Street Bank	11,000,000 TRY		4,787,477		4,783,626		(3,851	)

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

ACA — ACA Financial Guaranty Corporation

ADR — American depositary receipt

ADS — American depositary shares

AGC — Assured Guaranty Corporation

AGM — Assured Guaranty Municipal

Ambac — Ambac Financial Group Incorporated

AMT — Alternative minimum tax

AUD — Australian dollar

BAN — Bond anticipation notes

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazilian real

CAB — Capital appreciation bond

CAD — Canadian dollar

CCAB — Convertible capital appreciation bond

CDA — Community Development Authority

CDO — Collateralized debt obligation

CHF — Swiss franc

COP — Certificate of participation

CLP — Chilean peso

DKK — Danish krone

DRIVER — Derivative inverse tax-exempt receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETF — Exchange-traded fund

EUR — Euro

FDIC — Federal Deposit Insurance Corporation

FFCB — Federal Farm Credit Banks

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Administration

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FICO — The Financing Corporation

FNMA — Federal National Mortgage Association

FSA — Farm Service Agency

GBP — Great British pound

GDR — Global depositary receipt

GNMA — Government National Mortgage Association

GO — General obligation

HCFR — Healthcare facilities revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher education facilities authority revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong dollar

HUD — Department of Housing and Urban Development

HUF — Hungarian forint

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Industrial development revenue

IEP — Irish pound

JPY — Japanese yen

KRW — Republic of Korea won

LIBOR — London Interbank Offered Rate

LIQ — Liquidity agreement

LLC — Limited liability company

LLLP — Limited liability limited partnership

LLP — Limited liability partnership

LOC — Letter of credit

LP — Limited partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multifamily housing revenue

MSTR — Municipal securities trust receipts

MTN — Medium-term note

MUD — Municipal Utility District

MXN — Mexican peso

MYR — Malaysian ringgit

National — National Public Finance Guarantee Corporation

NGN — Nigerian naira

NOK — Norwegian krone

NZD — New Zealand dollar

PCFA — Pollution Control Financing Authority

PCL — Public Company Limited

PCR — Pollution control revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable floating option tax-exempt receipts

plc — Public limited company

PLN — Polish zloty

PUTTER — Puttable tax-exempt receipts

R&D — Research & development

Radian — Radian Asset Assurance

RAN — Revenue anticipation notes

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real estate investment trust

ROC — Reset option certificates

RON — Romanian lei

RUB — Russian ruble

SAVRS — Select auction variable rate securities

SBA — Small Business Authority

SEK — Swedish krona

SFHR — Single-family housing revenue

SFMR — Single-family mortgage revenue

SGD — Singapore dollar

SKK — Slovakian koruna

SPA — Standby purchase agreement

SPDR — Standard & Poor’s Depositary Receipts

STRIPS — Separate trading of registered interest and principal securities

TAN — Tax anticipation notes

TBA — To be announced

THB — Thai baht

TIPS — Treasury inflation-protected securities

TRAN — Tax revenue anticipation notes

TRY — Turkish lira

TTFA — Transportation Trust Fund Authority

TVA — Tennessee Valley Authority

ZAR — South African rand

ITEM 2. CONTROLS AND PROCEDURES

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

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

SIGNATURES

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


Wells Fargo Advantage Multi-Sector Income Fund

	By:	/s/ Karla M. Rabusch

		Karla M. Rabusch
		President

	Date:	March 26, 2014

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


Wells Fargo Advantage Multi-Sector Income Fund

	By:	/s/ Karla M. Rabusch

		Karla M. Rabusch
		President

	Date:	March 26, 2014

	By:	/s/ Jeremy DePalma

		Jeremy DePalma
		Treasurer

	Date:	March 26, 2014