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: 811-21507
Wells Fargo Income Opportunities Fund
(Exact name of registrant as specified in charter)
525 Market Street, 12th Floor, San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market Street, 12th Floor, San Francisco, CA 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: April 30
Registrant is making a filing for Wells Fargo Income Opportunities Fund.
Date of reporting period: July 31, 2017
ITEM 1. INVESTMENTS
| Wells Fargo Income Opportunities Fund | Portfolio of investments — July 31, 2017 (unaudited) |
| Security name | Shares | Value | ||||||||||||||
| Common Stocks : 0.47% |
||||||||||||||||
| Energy : 0.06% |
||||||||||||||||
| Oil, Gas & Consumable Fuels : 0.06% |
||||||||||||||||
| SilverBow Resources Incorporated †(i) |
16,268 | $ | 407,188 | |||||||||||||
|
|
|
|||||||||||||||
| Materials : 0.00% |
||||||||||||||||
| Chemicals : 0.00% |
||||||||||||||||
| LyondellBasell Industries NV Class A |
7 | 631 | ||||||||||||||
|
|
|
|||||||||||||||
| Utilities : 0.41% |
||||||||||||||||
| Independent Power & Renewable Electricity Producers : 0.41% |
||||||||||||||||
| Vistra Energy Corporation |
164,991 | 2,710,802 | ||||||||||||||
|
|
|
|||||||||||||||
| Total Common Stocks (Cost $13,311,556) |
3,118,621 | |||||||||||||||
|
|
|
|||||||||||||||
| Interest rate | Maturity date | Principal | ||||||||||||||
| Corporate Bonds and Notes : 112.39% |
||||||||||||||||
| Consumer Discretionary : 21.12% |
||||||||||||||||
| Auto Components : 2.10% |
||||||||||||||||
| Allison Transmission Incorporated 144A |
5.00 | % | 10-1-2024 | $ | 7,375,000 | 7,633,125 | ||||||||||
| Cooper Tire & Rubber Company (i) |
7.63 | 3-15-2027 | 5,190,000 | 5,812,800 | ||||||||||||
| Cooper Tire & Rubber Company |
8.00 | 12-15-2019 | 400,000 | 446,000 | ||||||||||||
| 13,891,925 | ||||||||||||||||
|
|
|
|||||||||||||||
| Distributors : 0.34% |
||||||||||||||||
| LKQ Corporation |
4.75 | 5-15-2023 | 2,200,000 | 2,227,500 | ||||||||||||
|
|
|
|||||||||||||||
| Diversified Consumer Services : 1.93% |
||||||||||||||||
| Service Corporation International |
7.50 | 4-1-2027 | 8,109,000 | 9,649,710 | ||||||||||||
| Service Corporation International |
7.63 | 10-1-2018 | 1,100,000 | 1,168,750 | ||||||||||||
| Service Corporation International |
8.00 | 11-15-2021 | 1,635,000 | 1,937,475 | ||||||||||||
| 12,755,935 | ||||||||||||||||
|
|
|
|||||||||||||||
| Hotels, Restaurants & Leisure : 1.05% |
||||||||||||||||
| Brinker International Incorporated 144A |
5.00 | 10-1-2024 | 850,000 | 850,000 | ||||||||||||
| CCM Merger Incorporated 144A |
6.00 | 3-15-2022 | 5,025,000 | 5,265,446 | ||||||||||||
| Speedway Motorsports Incorporated |
5.13 | 2-1-2023 | 825,000 | 845,625 | ||||||||||||
| 6,961,071 | ||||||||||||||||
|
|
|
|||||||||||||||
| Leisure Products : 0.13% |
||||||||||||||||
| Vista Outdoor Incorporated |
5.88 | 10-1-2023 | 850,000 | 871,250 | ||||||||||||
|
|
|
|||||||||||||||
| Media : 11.79% |
||||||||||||||||
| Altice US Finance I Corporation 144A |
5.38 | 7-15-2023 | 2,270,000 | 2,383,500 | ||||||||||||
| Altice US Finance I Corporation 144A |
5.50 | 5-15-2026 | 2,200,000 | 2,332,000 | ||||||||||||
| AMC Entertainment Holdings Incorporated |
5.75 | 6-15-2025 | 150,000 | 153,609 | ||||||||||||
| AMC Entertainment Holdings Incorporated |
5.88 | 11-15-2026 | 1,525,000 | 1,555,500 | ||||||||||||
| Cablevision Systems Corporation |
8.63 | 9-15-2017 | 1,322,000 | 1,330,263 | ||||||||||||
| CBS Radio Incorporated 144A |
7.25 | 11-1-2024 | 80,000 | 84,300 | ||||||||||||
| CCO Holdings LLC |
5.13 | 2-15-2023 | 2,266,000 | 2,345,310 | ||||||||||||
| CCO Holdings LLC 144A |
5.13 | 5-1-2023 | 2,965,000 | 3,113,250 | ||||||||||||
| CCO Holdings LLC 144A |
5.13 | 5-1-2027 | 750,000 | 775,313 | ||||||||||||
| CCO Holdings LLC |
5.25 | 9-30-2022 | 2,048,000 | 2,112,000 | ||||||||||||
| CCO Holdings LLC 144A |
5.38 | 5-1-2025 | 7,195,000 | 7,653,681 | ||||||||||||
| CCO Holdings LLC 144A |
5.50 | 5-1-2026 | 325,000 | 345,416 | ||||||||||||
| CCO Holdings LLC 144A |
5.75 | 2-15-2026 | 5,675,000 | 6,100,625 | ||||||||||||
| CCO Holdings LLC 144A |
5.88 | 4-1-2024 | 2,350,000 | 2,524,060 | ||||||||||||
| Cequel Communications Holdings I LLC 144A |
7.75 | 7-15-2025 | 3,625,000 | 4,046,406 | ||||||||||||
1
| Portfolio of investments — July 31, 2017 (unaudited) | Wells Fargo Income Opportunities Fund |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Media (continued) |
||||||||||||||||
| Cinemark USA Incorporated |
4.88 | % | 6-1-2023 | $ | 600,000 | $ | 609,750 | |||||||||
| CSC Holdings LLC |
7.88 | 2-15-2018 | 1,525,000 | 1,568,844 | ||||||||||||
| CSC Holdings LLC |
8.63 | 2-15-2019 | 635,000 | 695,325 | ||||||||||||
| EMI Music Publishing 144A |
7.63 | 6-15-2024 | 950,000 | 1,054,500 | ||||||||||||
| Gray Television Incorporated 144A |
5.13 | 10-15-2024 | 2,400,000 | 2,457,000 | ||||||||||||
| Gray Television Incorporated 144A |
5.88 | 7-15-2026 | 6,650,000 | 6,882,750 | ||||||||||||
| Lamar Media Corporation |
5.88 | 2-1-2022 | 1,785,000 | 1,843,013 | ||||||||||||
| Lin Television Corporation |
5.88 | 11-15-2022 | 425,000 | 445,719 | ||||||||||||
| Live Nation Entertainment Incorporated 144A |
4.88 | 11-1-2024 | 2,300,000 | 2,357,500 | ||||||||||||
| National CineMedia LLC |
5.75 | 8-15-2026 | 1,600,000 | 1,536,000 | ||||||||||||
| National CineMedia LLC |
6.00 | 4-15-2022 | 7,000,000 | 7,192,500 | ||||||||||||
| Nexstar Broadcasting Group Incorporated 144A |
5.63 | 8-1-2024 | 1,375,000 | 1,421,406 | ||||||||||||
| Nexstar Broadcasting Group Incorporated 144A |
6.13 | 2-15-2022 | 2,815,000 | 2,941,675 | ||||||||||||
| Nielsen Finance LLC 144A |
5.00 | 4-15-2022 | 1,595,000 | 1,644,844 | ||||||||||||
| Outfront Media Capital Corporation |
5.25 | 2-15-2022 | 320,000 | 331,200 | ||||||||||||
| Outfront Media Capital Corporation |
5.63 | 2-15-2024 | 735,000 | 767,156 | ||||||||||||
| Outfront Media Capital Corporation |
5.88 | 3-15-2025 | 1,275,000 | 1,337,156 | ||||||||||||
| Salem Media Group Incorporated 144A |
6.75 | 6-1-2024 | 3,825,000 | 3,968,438 | ||||||||||||
| The E.W. Scripps Company 144A |
5.13 | 5-15-2025 | 1,900,000 | 1,966,500 | ||||||||||||
| 77,876,509 | ||||||||||||||||
|
|
|
|||||||||||||||
| Specialty Retail : 3.57% |
||||||||||||||||
| Asbury Automotive Group Incorporated |
6.00 | 12-15-2024 | 6,300,000 | 6,441,750 | ||||||||||||
| Group 1 Automotive Incorporated |
5.00 | 6-1-2022 | 1,972,000 | 2,021,300 | ||||||||||||
| Group 1 Automotive Incorporated 144A |
5.25 | 12-15-2023 | 2,000,000 | 2,005,000 | ||||||||||||
| Lithia Motors Incorporated 144A |
5.25 | 8-1-2025 | 700,000 | 721,000 | ||||||||||||
| Penske Auto Group Incorporated |
5.38 | 12-1-2024 | 5,273,000 | 5,292,774 | ||||||||||||
| Penske Auto Group Incorporated |
5.75 | 10-1-2022 | 2,100,000 | 2,173,500 | ||||||||||||
| Sonic Automotive Incorporated |
5.00 | 5-15-2023 | 3,200,000 | 3,104,000 | ||||||||||||
| Sonic Automotive Incorporated |
6.13 | 3-15-2027 | 1,799,000 | 1,807,995 | ||||||||||||
| 23,567,319 | ||||||||||||||||
|
|
|
|||||||||||||||
| Textiles, Apparel & Luxury Goods : 0.21% |
||||||||||||||||
| Wolverine World Wide Company 144A |
5.00 | 9-1-2026 | 1,400,000 | 1,390,200 | ||||||||||||
|
|
|
|||||||||||||||
| Consumer Staples : 2.00% |
||||||||||||||||
| Beverages : 0.31% |
||||||||||||||||
| Cott Beverages Incorporated |
5.38 | 7-1-2022 | 850,000 | 881,875 | ||||||||||||
| Cott Beverages Incorporated 144A |
5.50 | 4-1-2025 | 1,125,000 | 1,182,656 | ||||||||||||
| 2,064,531 | ||||||||||||||||
|
|
|
|||||||||||||||
| Food Products : 1.50% |
||||||||||||||||
| B&G Foods Incorporated |
4.63 | 6-1-2021 | 670,000 | 685,913 | ||||||||||||
| B&G Foods Incorporated |
5.25 | 4-1-2025 | 1,750,000 | 1,824,375 | ||||||||||||
| Darling Ingredients Incorporated |
5.38 | 1-15-2022 | 295,000 | 306,800 | ||||||||||||
| Lamb Weston Holdings Incorporated 144A |
4.63 | 11-1-2024 | 75,000 | 78,281 | ||||||||||||
| Lamb Weston Holdings Incorporated 144A |
4.88 | 11-1-2026 | 75,000 | 78,406 | ||||||||||||
| Pilgrim’s Pride Corporation 144A |
5.75 | 3-15-2025 | 1,860,000 | 1,906,500 | ||||||||||||
| Pinnacle Foods Incorporated 144A |
5.63 | 5-1-2024 | 700,000 | 726,250 | ||||||||||||
| Pinnacle Foods Incorporated |
5.88 | 1-15-2024 | 100,000 | 107,250 | ||||||||||||
| Post Holdings Incorporated 144A |
5.00 | 8-15-2026 | 1,350,000 | 1,385,438 | ||||||||||||
| Post Holdings Incorporated 144A |
5.50 | 3-1-2025 | 875,000 | 923,125 | ||||||||||||
| Post Holdings Incorporated 144A |
5.75 | 3-1-2027 | 875,000 | 927,500 | ||||||||||||
| Prestige Brands Incorporated 144A |
6.38 | 3-1-2024 | 210,000 | 225,488 | ||||||||||||
| US Foods Incorporated 144A |
5.88 | 6-15-2024 | 670,000 | 699,313 | ||||||||||||
| 9,874,639 | ||||||||||||||||
|
|
|
|||||||||||||||
| Household Products : 0.19% |
||||||||||||||||
| Central Garden & Pet Company |
6.13 | 11-15-2023 | 405,000 | 433,350 | ||||||||||||
| Spectrum Brands Incorporated |
5.75 | 7-15-2025 | 775,000 | 826,344 | ||||||||||||
| 1,259,694 | ||||||||||||||||
|
|
|
|||||||||||||||
2
| Wells Fargo Income Opportunities Fund | Portfolio of investments — July 31, 2017 (unaudited) |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Energy : 28.49% |
||||||||||||||||
| Energy Equipment & Services : 8.79% |
||||||||||||||||
| Bristow Group Incorporated |
6.25 | % | 10-15-2022 | $ | 6,725,000 | $ | 4,354,438 | |||||||||
| Era Group Incorporated |
7.75 | 12-15-2022 | 3,895,000 | 3,544,450 | ||||||||||||
| Hilcorp Energy Company 144A |
5.00 | 12-1-2024 | 3,100,000 | 2,943,450 | ||||||||||||
| Hilcorp Energy Company 144A |
5.75 | 10-1-2025 | 4,195,000 | 4,090,125 | ||||||||||||
| Hornbeck Offshore Services Incorporated |
1.50 | 9-1-2019 | 7,847,000 | 6,238,365 | ||||||||||||
| Hornbeck Offshore Services Incorporated |
5.00 | 3-1-2021 | 2,925,000 | 1,608,750 | ||||||||||||
| Hornbeck Offshore Services Incorporated |
5.88 | 4-1-2020 | 4,562,000 | 2,748,605 | ||||||||||||
| NGPL PipeCo LLC 144A(z)%% |
4.38 | 8-15-2022 | 675,000 | 694,406 | ||||||||||||
| NGPL PipeCo LLC 144A(z)%% |
4.88 | 8-15-2027 | 1,050,000 | 1,081,500 | ||||||||||||
| NGPL PipeCo LLC 144A |
7.12 | 12-15-2017 | 3,990,000 | 4,059,825 | ||||||||||||
| NGPL PipeCo LLC 144A |
7.77 | 12-15-2037 | 14,900,000 | 18,476,000 | ||||||||||||
| PHI Incorporated |
5.25 | 3-15-2019 | 8,550,000 | 8,250,750 | ||||||||||||
| 58,090,664 | ||||||||||||||||
|
|
|
|||||||||||||||
| Oil, Gas & Consumable Fuels : 19.70% |
||||||||||||||||
| Archrock Partners LP |
6.00 | 10-1-2022 | 1,650,000 | 1,608,750 | ||||||||||||
| Carrizo Oil & Gas Incorporated |
8.25 | 7-15-2025 | 1,550,000 | 1,633,313 | ||||||||||||
| Continental Resources Incorporated |
3.80 | 6-1-2024 | 2,000,000 | 1,850,000 | ||||||||||||
| Continental Resources Incorporated |
5.00 | 9-15-2022 | 1,325,000 | 1,313,406 | ||||||||||||
| DCP Midstream Operating Company |
2.70 | 4-1-2019 | 1,425,000 | 1,416,094 | ||||||||||||
| Denbury Resources Incorporated |
4.63 | 7-15-2023 | 3,200,000 | 1,632,000 | ||||||||||||
| Denbury Resources Incorporated |
6.38 | 8-15-2021 | 6,205,000 | 3,614,413 | ||||||||||||
| Enable Midstream Partner LP |
2.40 | 5-15-2019 | 5,475,000 | 5,461,323 | ||||||||||||
| Enable Midstream Partner LP |
3.90 | 5-15-2024 | 3,150,000 | 3,143,574 | ||||||||||||
| Enable Midstream Partner LP |
4.40 | 3-15-2027 | 1,300,000 | 1,318,044 | ||||||||||||
| Enable Oklahoma Intrastate Transmission LLC 144A |
6.25 | 3-15-2020 | 1,100,000 | 1,183,621 | ||||||||||||
| EnLink Midstream LLC |
4.15 | 6-1-2025 | 5,000,000 | 5,013,095 | ||||||||||||
| EnLink Midstream LLC |
4.40 | 4-1-2024 | 5,400,000 | 5,545,876 | ||||||||||||
| Exterran Partners LP |
6.00 | 4-1-2021 | 7,750,000 | 7,672,500 | ||||||||||||
| Gulfport Energy Corporation 144A |
6.00 | 10-15-2024 | 1,625,000 | 1,607,775 | ||||||||||||
| Gulfport Energy Corporation 144A |
6.38 | 5-15-2025 | 1,325,000 | 1,323,344 | ||||||||||||
| Gulfport Energy Corporation |
6.63 | 5-1-2023 | 2,900,000 | 2,929,000 | ||||||||||||
| Kinder Morgan Incorporated |
6.50 | 9-15-2020 | 1,155,000 | 1,286,081 | ||||||||||||
| Kinder Morgan Incorporated (i) |
7.42 | 2-15-2037 | 1,820,000 | 2,094,640 | ||||||||||||
| Matador Resources Company |
6.88 | 4-15-2023 | 700,000 | 742,000 | ||||||||||||
| Murphy Oil Corporation |
4.70 | 12-1-2022 | 3,125,000 | 3,070,313 | ||||||||||||
| Murphy Oil Corporation |
6.88 | 8-15-2024 | 1,425,000 | 1,514,063 | ||||||||||||
| Nabors Industries Limited |
0.75 | 1-15-2024 | 800,000 | 633,000 | ||||||||||||
| Nabors Industries Limited |
5.50 | 1-15-2023 | 625,000 | 595,188 | ||||||||||||
| Overseas Shipholding Group Incorporated |
8.13 | 3-30-2018 | 3,975,000 | 4,064,438 | ||||||||||||
| PDC Energy Incorporated 144A |
6.13 | 9-15-2024 | 950,000 | 974,938 | ||||||||||||
| Rockies Express Pipeline LLC 144A |
5.63 | 4-15-2020 | 7,320,000 | 7,743,242 | ||||||||||||
| Rockies Express Pipeline LLC 144A |
6.88 | 4-15-2040 | 6,175,000 | 6,804,078 | ||||||||||||
| Rockies Express Pipeline LLC 144A |
7.50 | 7-15-2038 | 2,775,000 | 3,156,563 | ||||||||||||
| Rose Rock Midstream LP |
5.63 | 7-15-2022 | 2,450,000 | 2,431,625 | ||||||||||||
| Rose Rock Midstream LP |
5.63 | 11-15-2023 | 1,375,000 | 1,350,509 | ||||||||||||
| Sabine Oil & Gas Corporation (a)(i)(s) |
7.25 | 6-15-2019 | 850,000 | 0 | ||||||||||||
| Sabine Oil & Gas Corporation (a)(i)(s) |
7.50 | 9-15-2020 | 5,733,000 | 0 | ||||||||||||
| Sabine Pass Liquefaction LLC |
5.63 | 2-1-2021 | 2,275,000 | 2,485,772 | ||||||||||||
| Sabine Pass Liquefaction LLC |
5.63 | 4-15-2023 | 2,820,000 | 3,139,960 | ||||||||||||
| Sabine Pass Liquefaction LLC |
5.63 | 3-1-2025 | 740,000 | 823,221 | ||||||||||||
| Sabine Pass Liquefaction LLC |
5.75 | 5-15-2024 | 2,300,000 | 2,585,835 | ||||||||||||
| Sabine Pass Liquefaction LLC |
5.88 | 6-30-2026 | 4,500,000 | 5,066,213 | ||||||||||||
| Sabine Pass Liquefaction LLC |
6.25 | 3-15-2022 | 3,415,000 | 3,876,005 | ||||||||||||
| SemGroup Corporation 144A |
6.38 | 3-15-2025 | 5,625,000 | 5,568,750 | ||||||||||||
| Southern Star Central Corporation 144A |
5.13 | 7-15-2022 | 1,508,000 | 1,541,930 | ||||||||||||
| Southwestern Energy Company |
4.10 | 3-15-2022 | 815,000 | 759,988 | ||||||||||||
| Southwestern Energy Company |
6.70 | 1-23-2025 | 1,425,000 | 1,403,183 | ||||||||||||
| Summit Midstream Holdings LLC |
5.75 | 4-15-2025 | 400,000 | 405,000 | ||||||||||||
| Tallgrass Energy Partners LP 144A |
5.50 | 9-15-2024 | 12,225,000 | 12,515,344 | ||||||||||||
| Tesoro Logistics LP |
5.25 | 1-15-2025 | 1,150,000 | 1,230,500 | ||||||||||||
| Tesoro Logistics LP |
6.13 | 10-15-2021 | 350,000 | 362,688 | ||||||||||||
| Tesoro Logistics LP |
6.38 | 5-1-2024 | 725,000 | 792,063 | ||||||||||||
| Ultra Resources Incorporated 144A |
6.88 | 4-15-2022 | 1,200,000 | 1,236,000 | ||||||||||||
| Ultra Resources Incorporated 144A |
7.13 | 4-15-2025 | 925,000 | 943,269 | ||||||||||||
3
| Portfolio of investments — July 31, 2017 (unaudited) | Wells Fargo Income Opportunities Fund |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Oil, Gas & Consumable Fuels (continued) |
||||||||||||||||
| Western Gas Partners LP |
4.00 | % | 7-1-2022 | $ | 300,000 | $ | 309,480 | |||||||||
| Western Gas Partners LP |
5.38 | 6-1-2021 | 375,000 | 403,846 | ||||||||||||
| 130,175,853 | ||||||||||||||||
|
|
|
|||||||||||||||
| Financials : 10.30% |
||||||||||||||||
| Banks : 0.12% |
||||||||||||||||
| CIT Group Incorporated 144A |
5.50 | 2-15-2019 | 744,000 | 780,679 | ||||||||||||
|
|
|
|||||||||||||||
| Consumer Finance : 4.70% |
||||||||||||||||
| Ally Financial Incorporated |
7.50 | 9-15-2020 | 300,000 | 339,750 | ||||||||||||
| Ally Financial Incorporated |
8.00 | 12-31-2018 | 1,300,000 | 1,399,125 | ||||||||||||
| Ally Financial Incorporated |
8.00 | 3-15-2020 | 3,016,000 | 3,423,160 | ||||||||||||
| FirstCash Incorporated 144A |
5.38 | 6-1-2024 | 1,575,000 | 1,657,688 | ||||||||||||
| Navient Corporation |
8.00 | 3-25-2020 | 2,725,000 | 3,013,850 | ||||||||||||
| Navient Corporation |
8.45 | 6-15-2018 | 3,110,000 | 3,266,122 | ||||||||||||
| OneMain Financial Group LLC 144A |
7.25 | 12-15-2021 | 6,900,000 | 7,262,250 | ||||||||||||
| Springleaf Finance Corporation |
6.00 | 6-1-2020 | 1,375,000 | 1,450,625 | ||||||||||||
| Springleaf Finance Corporation |
6.50 | 9-15-2017 | 550,000 | 552,063 | ||||||||||||
| Springleaf Finance Corporation |
6.90 | 12-15-2017 | 6,950,000 | 7,062,938 | ||||||||||||
| Springleaf Finance Corporation |
8.25 | 12-15-2020 | 75,000 | 84,188 | ||||||||||||
| Springleaf Finance Corporation |
8.25 | 10-1-2023 | 1,342,000 | 1,509,750 | ||||||||||||
| 31,021,509 | ||||||||||||||||
|
|
|
|||||||||||||||
| Diversified Financial Services : 3.81% |
||||||||||||||||
| Infinity Acquisition LLC (i)144A |
7.25 | 8-1-2022 | 1,590,000 | 1,510,500 | ||||||||||||
| Jefferies Finance LLC 144A(z)%% |
7.25 | 8-15-2024 | 425,000 | 426,063 | ||||||||||||
| LPL Holdings Incorporated 144A |
5.75 | 9-15-2025 | 16,500,000 | 17,283,750 | ||||||||||||
| NewStar Financial Incorporated |
7.25 | 5-1-2020 | 4,075,000 | 4,176,875 | ||||||||||||
| Tempo Acquisition LLC 144A |
6.75 | 6-1-2025 | 1,700,000 | 1,763,750 | ||||||||||||
| 25,160,938 | ||||||||||||||||
|
|
|
|||||||||||||||
| Insurance : 1.67% |
||||||||||||||||
| Hub Holdings LLC (PIK at 8.88%) 144A¥ |
8.13 | 7-15-2019 | 3,405,000 | 3,405,000 | ||||||||||||
| HUB International Limited 144A |
7.88 | 10-1-2021 | 6,900,000 | 7,219,125 | ||||||||||||
| USIS Merger Sub Incorporated 144A |
6.88 | 5-1-2025 | 425,000 | 439,875 | ||||||||||||
| 11,064,000 | ||||||||||||||||
|
|
|
|||||||||||||||
| Health Care : 10.39% |
||||||||||||||||
| Health Care Equipment & Supplies : 2.08% |
||||||||||||||||
| Hill-Rom Holdings Incorporated 144A |
5.00 | 2-15-2025 | 925,000 | 950,438 | ||||||||||||
| Hill-Rom Holdings Incorporated 144A |
5.75 | 9-1-2023 | 325,000 | 342,875 | ||||||||||||
| Hologic Incorporated 144A |
5.25 | 7-15-2022 | 1,500,000 | 1,584,375 | ||||||||||||
| Kinetics Concepts Incorporated 144A |
7.88 | 2-15-2021 | 4,000,000 | 4,230,000 | ||||||||||||
| Surgery Center Holdings Incorporated 144A |
6.75 | 7-1-2025 | 2,125,000 | 2,183,438 | ||||||||||||
| Surgery Center Holdings Incorporated 144A |
8.88 | 4-15-2021 | 4,075,000 | 4,421,375 | ||||||||||||
| 13,712,501 | ||||||||||||||||
|
|
|
|||||||||||||||
| Health Care Providers & Services : 7.23% |
||||||||||||||||
| Acadia Healthcare Company Incorporated |
6.50 | 3-1-2024 | 310,000 | 333,250 | ||||||||||||
| Community Health Systems Incorporated |
6.25 | 3-31-2023 | 1,175,000 | 1,202,906 | ||||||||||||
| DaVita HealthCare Partners Incorporated |
5.00 | 5-1-2025 | 2,215,000 | 2,247,782 | ||||||||||||
| DaVita HealthCare Partners Incorporated |
5.75 | 8-15-2022 | 2,925,000 | 3,020,063 | ||||||||||||
| Fresenius Medical Care Holdings Incorporated 144A |
5.63 | 7-31-2019 | 1,000,000 | 1,062,500 | ||||||||||||
| HCA Incorporated |
5.88 | 3-15-2022 | 750,000 | 829,500 | ||||||||||||
| HCA Incorporated |
6.50 | 2-15-2020 | 6,525,000 | 7,128,563 | ||||||||||||
| HealthSouth Corporation |
5.75 | 9-15-2025 | 1,725,000 | 1,776,750 | ||||||||||||
| Mednax Incorporated 144A |
5.25 | 12-1-2023 | 1,000,000 | 1,030,000 | ||||||||||||
| MPH Acquisition Holdings LLC 144A |
7.13 | 6-1-2024 | 3,675,000 | 3,978,188 | ||||||||||||
| MPT Operating Partnership LP |
5.25 | 8-1-2026 | 2,050,000 | 2,142,250 | ||||||||||||
| MPT Operating Partnership LP |
6.38 | 2-15-2022 | 2,025,000 | 2,090,813 | ||||||||||||
4
| Wells Fargo Income Opportunities Fund | Portfolio of investments — July 31, 2017 (unaudited) |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Health Care Providers & Services (continued) |
||||||||||||||||
| MPT Operating Partnership LP |
6.38 | % | 3-1-2024 | $ | 170,000 | $ | 185,300 | |||||||||
| Select Medical Corporation |
6.38 | 6-1-2021 | 6,730,000 | 6,931,900 | ||||||||||||
| Tenet Healthcare Corporation 144A |
4.63 | 7-15-2024 | 2,264,000 | 2,252,680 | ||||||||||||
| Tenet Healthcare Corporation |
6.00 | 10-1-2020 | 3,325,000 | 3,561,906 | ||||||||||||
| Vizient Incorporated 144A |
10.38 | 3-1-2024 | 6,885,000 | 7,960,781 | ||||||||||||
| 47,735,132 | ||||||||||||||||
|
|
|
|||||||||||||||
| Health Care Technology : 0.74% |
||||||||||||||||
| Change Healthcare Holdings Incorporated 144A |
5.75 | 3-1-2025 | 4,379,000 | 4,526,791 | ||||||||||||
| QuintilesIMS Holdings Incorporated 144A |
5.00 | 10-15-2026 | 375,000 | 392,813 | ||||||||||||
| 4,919,604 | ||||||||||||||||
|
|
|
|||||||||||||||
| Pharmaceuticals : 0.34% |
||||||||||||||||
| Endo Finance LLC 144A |
5.38 | 1-15-2023 | 1,275,000 | 1,090,125 | ||||||||||||
| Endo Finance LLC 144A |
5.75 | 1-15-2022 | 1,180,000 | 1,089,730 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
7.25 | 7-15-2022 | 100,000 | 94,250 | ||||||||||||
| 2,274,105 | ||||||||||||||||
|
|
|
|||||||||||||||
| Industrials : 5.30% |
||||||||||||||||
| Airlines : 0.38% |
||||||||||||||||
| Aviation Capital Group Corporation 144A |
6.75 | 4-6-2021 | 2,190,000 | 2,487,476 | ||||||||||||
|
|
|
|||||||||||||||
| Commercial Services & Supplies : 4.21% |
||||||||||||||||
| Acco Brands Corporation 144A |
5.25 | 12-15-2024 | 725,000 | 754,000 | ||||||||||||
| Advanced Disposal Services Incorporated 144A(i) |
5.63 | 11-15-2024 | 5,675,000 | 5,887,813 | ||||||||||||
| Aramark Services Incorporated |
5.13 | 1-15-2024 | 1,245,000 | 1,322,302 | ||||||||||||
| Covanta Holding Corporation |
5.88 | 3-1-2024 | 5,393,000 | 5,258,175 | ||||||||||||
| Covanta Holding Corporation |
5.88 | 7-1-2025 | 1,500,000 | 1,458,750 | ||||||||||||
| Covanta Holding Corporation |
6.38 | 10-1-2022 | 3,205,000 | 3,285,125 | ||||||||||||
| DAE Funding LLC 144A(z)%% |
4.50 | 8-1-2022 | 775,000 | 788,563 | ||||||||||||
| DAE Funding LLC 144A(z)%% |
5.00 | 8-1-2024 | 775,000 | 791,469 | ||||||||||||
| KAR Auction Services Incorporated 144A |
5.13 | 6-1-2025 | 6,450,000 | 6,724,125 | ||||||||||||
| The ServiceMaster Company LLC 144A |
5.13 | 11-15-2024 | 1,525,000 | 1,566,938 | ||||||||||||
| 27,837,260 | ||||||||||||||||
|
|
|
|||||||||||||||
| Professional Services : 0.07% |
||||||||||||||||
| Ascent Capital Group Incorporated |
4.00 | 7-15-2020 | 600,000 | 480,000 | ||||||||||||
|
|
|
|||||||||||||||
| Trading Companies & Distributors : 0.64% |
||||||||||||||||
| Ashtead Capital Incorporated 144A |
6.50 | 7-15-2022 | 3,025,000 | 3,138,438 | ||||||||||||
| International Lease Finance Corporation 144A |
7.13 | 9-1-2018 | 1,015,000 | 1,071,607 | ||||||||||||
| 4,210,045 | ||||||||||||||||
|
|
|
|||||||||||||||
| Information Technology : 11.83% |
||||||||||||||||
| Communications Equipment : 0.38% |
||||||||||||||||
| CommScope Technologies Finance LLC 144A |
5.00 | 3-15-2027 | 325,000 | 325,813 | ||||||||||||
| CommScope Technologies Finance LLC 144A |
6.00 | 6-15-2025 | 2,050,000 | 2,203,750 | ||||||||||||
| 2,529,563 | ||||||||||||||||
|
|
|
|||||||||||||||
| Electronic Equipment, Instruments & Components : 2.69% |
||||||||||||||||
| Jabil Circuit Incorporated |
8.25 | 3-15-2018 | 13,532,000 | 14,056,365 | ||||||||||||
| Zebra Technologies Corporation |
7.25 | 10-15-2022 | 3,485,000 | 3,709,347 | ||||||||||||
| 17,765,712 | ||||||||||||||||
|
|
|
|||||||||||||||
| Internet Software & Services : 1.14% |
||||||||||||||||
| Infor Software Parent LLC |
6.50 | 5-15-2022 | 875,000 | 911,094 | ||||||||||||
5
| Portfolio of investments — July 31, 2017 (unaudited) | Wells Fargo Income Opportunities Fund |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Internet Software & Services (continued) |
||||||||||||||||
| Infor Software Parent LLC (PIK at 7.88%) 144A¥ |
7.13 | % | 5-1-2021 | $ | 1,260,000 | $ | 1,304,100 | |||||||||
| Zayo Group LLC 144A |
5.75 | 1-15-2027 | 1,950,000 | 2,067,000 | ||||||||||||
| Zayo Group LLC |
6.00 | 4-1-2023 | 620,000 | 653,325 | ||||||||||||
| Zayo Group LLC |
6.38 | 5-15-2025 | 2,375,000 | 2,573,906 | ||||||||||||
| 7,509,425 | ||||||||||||||||
|
|
|
|||||||||||||||
| IT Services : 2.41% |
||||||||||||||||
| Cardtronics Incorporated |
5.13 | 8-1-2022 | 2,925,000 | 2,983,500 | ||||||||||||
| Cardtronics Incorporated 144A |
5.50 | 5-1-2025 | 2,075,000 | 2,137,250 | ||||||||||||
| First Data Corporation 144A |
5.00 | 1-15-2024 | 2,100,000 | 2,184,000 | ||||||||||||
| First Data Corporation 144A |
5.38 | 8-15-2023 | 525,000 | 549,281 | ||||||||||||
| First Data Corporation 144A |
5.75 | 1-15-2024 | 2,070,000 | 2,186,438 | ||||||||||||
| First Data Corporation 144A |
7.00 | 12-1-2023 | 1,675,000 | 1,806,906 | ||||||||||||
| Gartner Incorporated 144A |
5.13 | 4-1-2025 | 3,850,000 | 4,071,375 | ||||||||||||
| 15,918,750 | ||||||||||||||||
|
|
|
|||||||||||||||
| Semiconductors & Semiconductor Equipment : 0.67% |
||||||||||||||||
| Micron Technology Incorporated 144A |
5.25 | 8-1-2023 | 600,000 | 626,063 | ||||||||||||
| Micron Technology Incorporated 144A |
5.25 | 1-15-2024 | 1,325,000 | 1,380,899 | ||||||||||||
| Micron Technology Incorporated |
5.50 | 2-1-2025 | 659,000 | 699,159 | ||||||||||||
| Micron Technology Incorporated |
5.88 | 2-15-2022 | 1,685,000 | 1,752,400 | ||||||||||||
| 4,458,521 | ||||||||||||||||
|
|
|
|||||||||||||||
| Software : 0.52% |
||||||||||||||||
| CDK Global Incorporated 144A |
4.88 | 6-1-2027 | 425,000 | 436,688 | ||||||||||||
| CDK Global Incorporated |
5.00 | 10-15-2024 | 1,050,000 | 1,113,000 | ||||||||||||
| SS&C Technologies Incorporated |
5.88 | 7-15-2023 | 1,430,000 | 1,519,375 | ||||||||||||
| Symantec Corporation 144A |
5.00 | 4-15-2025 | 325,000 | 340,438 | ||||||||||||
| 3,409,501 | ||||||||||||||||
|
|
|
|||||||||||||||
| Technology Hardware, Storage & Peripherals : 4.02% |
||||||||||||||||
| Diamond 1 Finance Corporation 144A |
4.42 | 6-15-2021 | 250,000 | 264,165 | ||||||||||||
| Diamond 1 Finance Corporation 144A |
5.88 | 6-15-2021 | 5,125,000 | 5,374,844 | ||||||||||||
| Diamond 1 Finance Corporation 144A |
7.13 | 6-15-2024 | 8,825,000 | 9,821,060 | ||||||||||||
| NCR Corporation |
5.88 | 12-15-2021 | 380,000 | 396,150 | ||||||||||||
| NCR Corporation |
6.38 | 12-15-2023 | 10,038,000 | 10,715,565 | ||||||||||||
| 26,571,784 | ||||||||||||||||
|
|
|
|||||||||||||||
| Materials : 3.06% |
||||||||||||||||
| Chemicals : 0.18% |
||||||||||||||||
| Celanese U.S. Holdings LLC |
5.88 | 6-15-2021 | 440,000 | 493,097 | ||||||||||||
| Valvoline Incorporated 144A |
5.50 | 7-15-2024 | 625,000 | 662,500 | ||||||||||||
| 1,155,597 | ||||||||||||||||
|
|
|
|||||||||||||||
| Containers & Packaging : 2.88% |
||||||||||||||||
| Ball Corporation |
5.25 | 7-1-2025 | 305,000 | 335,500 | ||||||||||||
| Berry Plastics Corporation |
5.13 | 7-15-2023 | 700,000 | 729,750 | ||||||||||||
| Berry Plastics Corporation |
6.00 | 10-15-2022 | 350,000 | 371,875 | ||||||||||||
| Crown Cork & Seal Company Incorporated |
7.38 | 12-15-2026 | 2,910,000 | 3,411,975 | ||||||||||||
| Crown Cork & Seal Company Incorporated (i) |
7.50 | 12-15-2096 | 1,225,000 | 1,228,063 | ||||||||||||
| Owens-Brockway Glass Container Incorporated 144A |
5.88 | 8-15-2023 | 1,300,000 | 1,440,563 | ||||||||||||
| Owens-Illinois Incorporated 144A |
5.38 | 1-15-2025 | 925,000 | 993,219 | ||||||||||||
| Owens-Illinois Incorporated 144A |
6.38 | 8-15-2025 | 6,210,000 | 7,001,775 | ||||||||||||
| Sealed Air Corporation 144A |
5.13 | 12-1-2024 | 2,350,000 | 2,511,563 | ||||||||||||
| Silgan Holdings Incorporated |
5.00 | 4-1-2020 | 784,000 | 793,800 | ||||||||||||
| Silgan Holdings Incorporated |
5.50 | 2-1-2022 | 225,000 | 230,625 | ||||||||||||
| 19,048,708 | ||||||||||||||||
|
|
|
|||||||||||||||
6
| Wells Fargo Income Opportunities Fund | Portfolio of investments — July 31, 2017 (unaudited) |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Metals & Mining : 0.00% |
||||||||||||||||
| Indalex Holdings Corporation (a)(i)(s) |
11.50 | % | 2-1-2020 | $ | 5,985,000 | $ | 0 | |||||||||
|
|
|
|||||||||||||||
| Real Estate : 8.77% |
||||||||||||||||
| Equity REITs : 8.77% |
||||||||||||||||
| CoreCivic Incorporated |
5.00 | 10-15-2022 | 2,175,000 | 2,267,438 | ||||||||||||
| Crown Castle International Corporation |
4.88 | 4-15-2022 | 760,000 | 831,413 | ||||||||||||
| Crown Castle International Corporation |
5.25 | 1-15-2023 | 4,385,000 | 4,898,010 | ||||||||||||
| DuPont Fabros Technology Incorporated LP |
5.63 | 6-15-2023 | 4,875,000 | 5,205,574 | ||||||||||||
| DuPont Fabros Technology Incorporated LP |
5.88 | 9-15-2021 | 7,670,000 | 7,948,996 | ||||||||||||
| Equinix Incorporated |
5.38 | 5-15-2027 | 675,000 | 729,844 | ||||||||||||
| Equinix Incorporated |
5.75 | 1-1-2025 | 1,075,000 | 1,155,625 | ||||||||||||
| Equinix Incorporated |
5.88 | 1-15-2026 | 2,350,000 | 2,573,250 | ||||||||||||
| ESH Hospitality Incorporated 144A |
5.25 | 5-1-2025 | 7,500,000 | 7,837,500 | ||||||||||||
| Iron Mountain Incorporated 144A |
4.38 | 6-1-2021 | 2,500,000 | 2,593,750 | ||||||||||||
| Iron Mountain Incorporated 144A |
5.38 | 6-1-2026 | 2,175,000 | 2,310,938 | ||||||||||||
| Iron Mountain Incorporated 144A |
6.00 | 10-1-2020 | 600,000 | 621,000 | ||||||||||||
| Iron Mountain Incorporated |
6.00 | 8-15-2023 | 5,185,000 | 5,483,138 | ||||||||||||
| Sabra Health Care Incorporated |
5.38 | 6-1-2023 | 2,100,000 | 2,173,500 | ||||||||||||
| Sabra Health Care Incorporated |
5.50 | 2-1-2021 | 2,285,000 | 2,372,413 | ||||||||||||
| SBA Communications Corporation |
4.88 | 7-15-2022 | 1,485,000 | 1,541,994 | ||||||||||||
| The Geo Group Incorporated |
5.13 | 4-1-2023 | 1,305,000 | 1,318,050 | ||||||||||||
| The Geo Group Incorporated |
5.88 | 1-15-2022 | 2,595,000 | 2,695,556 | ||||||||||||
| The Geo Group Incorporated |
5.88 | 10-15-2024 | 2,200,000 | 2,285,250 | ||||||||||||
| The Geo Group Incorporated |
6.00 | 4-15-2026 | 1,085,000 | 1,129,637 | ||||||||||||
| 57,972,876 | ||||||||||||||||
|
|
|
|||||||||||||||
| Telecommunication Services : 5.84% |
||||||||||||||||
| Diversified Telecommunication Services : 2.44% |
||||||||||||||||
| Frontier Communications Corporation |
8.13 | 10-1-2018 | 1,980,000 | 2,066,625 | ||||||||||||
| GCI Incorporated |
6.75 | 6-1-2021 | 2,625,000 | 2,707,031 | ||||||||||||
| Level 3 Financing Incorporated |
5.13 | 5-1-2023 | 1,595,000 | 1,658,800 | ||||||||||||
| Level 3 Financing Incorporated |
5.25 | 3-15-2026 | 1,050,000 | 1,115,625 | ||||||||||||
| Level 3 Financing Incorporated |
5.38 | 8-15-2022 | 2,545,000 | 2,614,988 | ||||||||||||
| Level 3 Financing Incorporated |
5.38 | 1-15-2024 | 1,125,000 | 1,184,063 | ||||||||||||
| Level 3 Financing Incorporated |
5.38 | 5-1-2025 | 1,595,000 | 1,694,688 | ||||||||||||
| Level 3 Financing Incorporated |
5.63 | 2-1-2023 | 1,275,000 | 1,329,188 | ||||||||||||
| Level 3 Financing Incorporated |
6.13 | 1-15-2021 | 1,690,000 | 1,736,475 | ||||||||||||
| 16,107,483 | ||||||||||||||||
|
|
|
|||||||||||||||
| Wireless Telecommunication Services : 3.40% |
||||||||||||||||
| SBA Communications Corporation |
4.88 | 9-1-2024 | 1,025,000 | 1,064,719 | ||||||||||||
| Sprint Capital Corporation |
6.88 | 11-15-2028 | 8,600,000 | 9,374,000 | ||||||||||||
| Sprint Capital Corporation |
8.75 | 3-15-2032 | 1,830,000 | 2,269,200 | ||||||||||||
| Sprint Communications Incorporated |
7.00 | 8-15-2020 | 380,000 | 415,150 | ||||||||||||
| T-Mobile USA Incorporated |
4.00 | 4-15-2022 | 1,075,000 | 1,120,688 | ||||||||||||
| T-Mobile USA Incorporated |
5.13 | 4-15-2025 | 725,000 | 768,500 | ||||||||||||
| T-Mobile USA Incorporated |
5.38 | 4-15-2027 | 350,000 | 378,000 | ||||||||||||
| T-Mobile USA Incorporated |
6.00 | 3-1-2023 | 500,000 | 529,215 | ||||||||||||
| T-Mobile USA Incorporated |
6.00 | 4-15-2024 | 275,000 | 295,625 | ||||||||||||
| T-Mobile USA Incorporated |
6.13 | 1-15-2022 | 140,000 | 146,650 | ||||||||||||
| T-Mobile USA Incorporated |
6.38 | 3-1-2025 | 2,800,000 | 3,013,500 | ||||||||||||
| T-Mobile USA Incorporated |
6.50 | 1-15-2024 | 140,000 | 150,805 | ||||||||||||
| T-Mobile USA Incorporated |
6.63 | 4-1-2023 | 1,050,000 | 1,110,375 | ||||||||||||
| T-Mobile USA Incorporated |
6.84 | 4-28-2023 | 1,765,000 | 1,873,106 | ||||||||||||
| 22,509,533 | ||||||||||||||||
|
|
|
|||||||||||||||
| Utilities : 5.29% |
||||||||||||||||
| Gas Utilities : 0.34% |
||||||||||||||||
| AmeriGas Partners LP |
5.75 | 5-20-2027 | 2,250,000 | 2,272,500 | ||||||||||||
|
|
|
|||||||||||||||
7
| Portfolio of investments — July 31, 2017 (unaudited) | Wells Fargo Income Opportunities Fund |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Independent Power & Renewable Electricity Producers : 4.95% |
|
|||||||||||||||
| Calpine Corporation 144A |
6.00 | % | 1-15-2022 | $ | 255,000 | $ | 262,969 | |||||||||
| NSG Holdings LLC 144A |
7.75 | 12-15-2025 | 8,141,392 | 8,772,350 | ||||||||||||
| Pattern Energy Group Incorporated 144A |
5.88 | 2-1-2024 | 10,418,000 | 10,990,990 | ||||||||||||
| TerraForm Power Operating LLC 144A |
6.38 | 2-1-2023 | 9,065,000 | 9,427,600 | ||||||||||||
| TerraForm Power Operating LLC 144A |
6.63 | 6-15-2025 | 3,050,000 | 3,248,250 | ||||||||||||
| 32,702,159 | ||||||||||||||||
|
|
|
|||||||||||||||
| Total Corporate Bonds and Notes (Cost $714,348,609) |
742,622,451 | |||||||||||||||
|
|
|
|||||||||||||||
| Loans : 5.38% |
||||||||||||||||
| Consumer Discretionary : 1.94% |
||||||||||||||||
| Auto Components : 0.52% |
||||||||||||||||
| Federal-Mogul Corporation ± |
4.98 | 4-15-2021 | 3,408,159 | 3,432,289 | ||||||||||||
|
|
|
|||||||||||||||
| Hotels, Restaurants & Leisure : 1.42% |
||||||||||||||||
| CCM Merger Incorporated ± |
3.98 | 8-8-2021 | 896,311 | 898,776 | ||||||||||||
| Montreign Operating Company ± |
9.48 | 12-7-2022 | 8,425,000 | 8,511,862 | ||||||||||||
| 9,410,638 | ||||||||||||||||
|
|
|
|||||||||||||||
| Energy : 0.55% |
||||||||||||||||
| Energy Equipment & Services : 0.12% |
||||||||||||||||
| Hummel Station LLC ± |
7.23 | 10-27-2022 | 893,917 | 822,404 | ||||||||||||
|
|
|
|||||||||||||||
| Oil, Gas & Consumable Fuels : 0.43% |
||||||||||||||||
| Chesapeake Energy Corporation ± |
8.69 | 8-23-2021 | 725,000 | 777,744 | ||||||||||||
| Ultra Resources Incorporated ± |
4.22 | 4-12-2024 | 2,025,000 | 2,032,594 | ||||||||||||
| 2,810,338 | ||||||||||||||||
|
|
|
|||||||||||||||
| Financials : 0.15% |
||||||||||||||||
| Diversified Financial Services : 0.15% |
||||||||||||||||
| American Beacon Advisors Incorporated ± |
10.06 | 3-3-2023 | 1,010,000 | 1,010,000 | ||||||||||||
|
|
|
|||||||||||||||
| Health Care : 0.04% |
||||||||||||||||
| Health Care Providers & Services : 0.04% |
||||||||||||||||
| Press Ganey Holdings Incorporated ± |
8.48 | 10-21-2024 | 250,000 | 255,313 | ||||||||||||
|
|
|
|||||||||||||||
| Industrials : 0.42% |
||||||||||||||||
| Commercial Services & Supplies : 0.42% |
||||||||||||||||
| Advantage Sales & Marketing LLC ± |
7.80 | 7-25-2022 | 2,025,000 | 1,913,625 | ||||||||||||
| WASH Multifamily Laundry Systems LLC ± |
4.48 | 5-14-2022 | 567,085 | 567,085 | ||||||||||||
| WASH Multifamily Laundry Systems LLC ± |
4.48 | 5-14-2022 | 99,313 | 99,313 | ||||||||||||
| WASH Multifamily Laundry Systems LLC ± |
8.23 | 5-12-2023 | 29,808 | 29,510 | ||||||||||||
| WASH Multifamily Laundry Systems LLC (i)± |
8.23 | 5-14-2023 | 170,192 | 168,490 | ||||||||||||
| 2,778,023 | ||||||||||||||||
|
|
|
|||||||||||||||
| Information Technology : 1.20% |
||||||||||||||||
| Internet Software & Services : 1.20% |
||||||||||||||||
| Ancestry.com Incorporated ± |
4.48 | 10-19-2023 | 4,900,500 | 4,938,773 | ||||||||||||
| Ancestry.com Incorporated ± |
9.48 | 10-19-2024 | 2,970,000 | 3,029,400 | ||||||||||||
| 7,968,173 | ||||||||||||||||
|
|
|
|||||||||||||||
| Real Estate : 0.21% |
||||||||||||||||
| Real Estate Management & Development : 0.21% |
||||||||||||||||
| Capital Automotive LP ± |
7.24 | 3-24-2025 | 1,340,000 | 1,360,944 | ||||||||||||
|
|
|
|||||||||||||||
8
| Wells Fargo Income Opportunities Fund | Portfolio of investments — July 31, 2017 (unaudited) |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||
| Telecommunication Services : 0.73% |
||||||||||||||||
| Diversified Telecommunication Services : 0.73% |
||||||||||||||||
| Frontier Communications Corporation ± |
4.98 | % | 6-15-2024 | $ | 5,000,000 | $ | 4,797,900 | |||||||||
|
|
|
|||||||||||||||
| Utilities : 0.14% |
||||||||||||||||
| Independent Power & Renewable Electricity Producers : 0.14% |
||||||||||||||||
| Vistra Energy Corporation ± |
4.48 | 12-14-2023 | 920,375 | 927,066 | ||||||||||||
|
|
|
|||||||||||||||
| Total Loans (Cost $35,394,062) |
35,573,088 | |||||||||||||||
|
|
|
|||||||||||||||
| Expiration date | Shares | |||||||||||||||
| Rights : 0.09% |
||||||||||||||||
| Utilities : 0.09% |
||||||||||||||||
| Independent Power & Renewable Electricity Producers : 0.09% |
||||||||||||||||
| Vistra Energy Corporation (i)† |
12-14-2023 | 559,650 | 559,650 | |||||||||||||
|
|
|
|||||||||||||||
| Total Rights (Cost $615,615) |
559,650 | |||||||||||||||
|
|
|
|||||||||||||||
| Maturity date | Principal | |||||||||||||||
| Yankee Corporate Bonds and Notes : 11.69% |
||||||||||||||||
| Energy : 2.90% |
||||||||||||||||
| Energy Equipment & Services : 0.71% |
||||||||||||||||
| Ensco plc |
5.75 | 10-1-2044 | $ | 6,902,000 | 4,607,085 | |||||||||||
| Trinidad Drilling Limited 144A |
6.63 | 2-15-2025 | 100,000 | 94,250 | ||||||||||||
| 4,701,335 | ||||||||||||||||
|
|
|
|||||||||||||||
| Oil, Gas & Consumable Fuels : 2.19% |
||||||||||||||||
| Baytex Energy Corporation 144A |
5.13 | 6-1-2021 | 3,600,000 | 3,285,000 | ||||||||||||
| Baytex Energy Corporation 144A |
5.63 | 6-1-2024 | 1,759,000 | 1,539,125 | ||||||||||||
| Griffin Coal Mining Company Limited (a)(i)144A(s) |
9.50 | 12-1-2016 | 2,119,383 | 8,478 | ||||||||||||
| Griffin Coal Mining Company Limited (a)(i)(s) |
9.50 | 12-1-2016 | 290,088 | 1,160 | ||||||||||||
| Teekay Corporation |
8.50 | 1-15-2020 | 9,583,000 | 9,630,915 | ||||||||||||
| 14,464,678 | ||||||||||||||||
|
|
|
|||||||||||||||
| Financials : 0.54% |
||||||||||||||||
| Banks : 0.54% |
||||||||||||||||
| Nielsen Holding and Finance BV 144A |
5.00 | 2-1-2025 | 2,775,000 | 2,865,188 | ||||||||||||
| Nielsen Holding and Finance BV 144A |
5.50 | 10-1-2021 | 700,000 | 722,750 | ||||||||||||
| Preferred Term Securities XII Limited (a)(i)(s) |
0.00 | 12-24-2033 | 1,540,000 | 0 | ||||||||||||
| 3,587,938 | ||||||||||||||||
|
|
|
|||||||||||||||
| Health Care : 3.12% |
||||||||||||||||
| Pharmaceuticals : 3.12% |
||||||||||||||||
| Endo Finance LLC 144A |
5.88 | 10-15-2024 | 400,000 | 414,000 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
5.50 | 3-1-2023 | 3,825,000 | 3,260,813 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
5.63 | 12-1-2021 | 1,178,000 | 1,066,090 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
5.88 | 5-15-2023 | 3,600,000 | 3,096,000 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
6.13 | 4-15-2025 | 7,880,000 | 6,707,850 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
6.38 | 10-15-2020 | 2,375,000 | 2,309,688 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
6.50 | 3-15-2022 | 525,000 | 553,875 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
6.75 | 8-15-2021 | 700,000 | 661,500 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
7.00 | 3-15-2024 | 950,000 | 1,011,750 | ||||||||||||
| Valeant Pharmaceuticals International Incorporated 144A |
7.50 | 7-15-2021 | 1,541,000 | 1,496,696 | ||||||||||||
| 20,578,262 | ||||||||||||||||
|
|
|
|||||||||||||||
9
| Portfolio of investments — July 31, 2017 (unaudited) | Wells Fargo Income Opportunities Fund |
| Security name | Interest rate | Maturity date | Principal | Value | ||||||||||||||||
| Industrials : 1.77% |
||||||||||||||||||||
| Building Products : 0.05% |
||||||||||||||||||||
| Allegion plc |
5.88 | % | 9-15-2023 | $ | 340,000 | $ | 366,489 | |||||||||||||
|
|
|
|||||||||||||||||||
| Commercial Services & Supplies : 1.46% |
||||||||||||||||||||
| GFL Environmental Incorporated 144A |
5.63 | 5-1-2022 | 925,000 | 955,063 | ||||||||||||||||
| GFL Environmental Incorporated 144A |
9.88 | 2-1-2021 | 1,050,000 | 1,136,625 | ||||||||||||||||
| Ritchie Brothers Auctioneers Incorporated 144A |
5.38 | 1-15-2025 | 7,175,000 | 7,527,580 | ||||||||||||||||
| 9,619,268 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||
| Machinery : 0.08% |
||||||||||||||||||||
| Sensata Technologies BV 144A |
5.00 | 10-1-2025 | 485,000 | 510,463 | ||||||||||||||||
|
|
|
|||||||||||||||||||
| Professional Services : 0.18% |
||||||||||||||||||||
| IHS Markit Limited 144A |
4.75 | 2-15-2025 | 1,150,000 | 1,210,375 | ||||||||||||||||
|
|
|
|||||||||||||||||||
| Materials : 0.90% |
||||||||||||||||||||
| Containers & Packaging : 0.77% |
||||||||||||||||||||
| Ardagh Packaging Finance plc 144A |
4.25 | 9-15-2022 | 600,000 | 616,500 | ||||||||||||||||
| Ardagh Packaging Finance plc 144A |
6.00 | 2-15-2025 | 2,950,000 | 3,150,954 | ||||||||||||||||
| Ardagh Packaging Finance plc 144A |
7.25 | 5-15-2024 | 1,175,000 | 1,296,906 | ||||||||||||||||
| 5,064,360 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||
| Metals & Mining : 0.13% |
||||||||||||||||||||
| ArcelorMittal SA |
6.13 | 6-1-2025 | 450,000 | 513,563 | ||||||||||||||||
| Novelis Corporation 144A |
6.25 | 8-15-2024 | 325,000 | 347,750 | ||||||||||||||||
| 861,313 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||
| Telecommunication Services : 2.46% |
||||||||||||||||||||
| Diversified Telecommunication Services : 2.46% |
||||||||||||||||||||
| Intelsat Jackson Holdings SA |
5.50 | 8-1-2023 | 11,740,000 | 10,125,750 | ||||||||||||||||
| Intelsat Luxembourg SA |
7.75 | 6-1-2021 | 4,975,000 | 3,184,000 | ||||||||||||||||
| Intelsat Luxembourg SA |
8.13 | 6-1-2023 | 3,750,000 | 2,321,222 | ||||||||||||||||
| Virgin Media Finance plc 144A |
6.38 | 4-15-2023 | 605,000 | 635,250 | ||||||||||||||||
| 16,266,222 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||
| Total Yankee Corporate Bonds and Notes |
77,230,703 | |||||||||||||||||||
|
|
|
|||||||||||||||||||
| Yield | Shares | |||||||||||||||||||
| Short-Term Investments : 3.76% |
||||||||||||||||||||
| Investment Companies : 3.76% |
||||||||||||||||||||
| Wells Fargo Government Money Market Fund Select Class (l)(u)## |
0.89 | 24,808,767 | 24,808,767 | |||||||||||||||||
|
|
|
|||||||||||||||||||
| Total Short-Term Investments (Cost $24,808,767) |
24,808,767 | |||||||||||||||||||
|
|
|
|||||||||||||||||||
| Total investments in securities (Cost $870,257,162)* |
133.78 | % | 883,913,280 | |||||||||||||||||
| Other assets and liabilities, net |
(33.78 | ) | (223,181,933 | ) | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Total net assets |
100.00 | % | $ | 660,731,347 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| † | Non-income-earning security |
| (i) | Illiquid security |
| 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. |
| (a) | The security is fair valued in accordance with procedures approved by the Board of Trustees. |
| (s) | The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security. |
| (z) | Zero coupon security. The rate represents the current yield to maturity. |
10
| Wells Fargo Income Opportunities Fund | Portfolio of investments — July 31, 2017 (unaudited) |
| %% | The security is issued on a when-issued basis. |
| ¥ | 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. |
| ± | Variable rate investment. The rate shown is the rate in effect at period end. |
| (l) | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| (u) | The rate represents the 7-day annualized yield at period end. |
| ## | All or a portion of this security is segregated for when-issued securities. |
| * | Cost for federal income tax purposes is $875,577,795 and unrealized gains (losses) consists of: |
| Gross unrealized gains |
$ | 43,219,468 | ||
| Gross unrealized losses |
(34,883,983 | ) | ||
|
|
|
|||
| Net unrealized gains |
$ | 8,335,485 |
Abbreviations:
| LLC | Limited liability company | |
| LP | Limited partnership | |
| plc | Public limited company | |
| REIT | Real estate investment trust |
11
Wells Fargo Income Opportunities Fund (the “Fund”)
Notes to Portfolio of investments – July 31, 2017 (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), although the Fund may deviate from this calculation under unusual or unexpected circumstances.
Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market that day, the prior day’s price will be deemed “stale” and a fair value price will be determined in accordance with the Fund’s Valuation Procedures.
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 of Wells Fargo Funds Management, LLC. 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 manager 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.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Loans
The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.
Fair valuation measurements
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| Level 1 – | quoted prices in active markets for identical securities | |
| Level 2 – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
| Level 3 – | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) | |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2017:
| Quoted prices (Level 1) |
Other significant observable inputs (Level 2) |
Significant unobservable inputs (Level 3) |
Total | |||||||||||||
| Assets |
||||||||||||||||
| Investments in : |
||||||||||||||||
| Common stocks |
||||||||||||||||
| Energy |
$ | 0 | $ | 407,188 | $ | 0 | $ | 407,188 | ||||||||
| Materials |
631 | 0 | 0 | 631 | ||||||||||||
| Utilities |
2,710,802 | 0 | 0 | 2,710,802 | ||||||||||||
| Corporate bonds and notes |
0 | 742,622,451 | 0 | 742,622,451 | ||||||||||||
| Loans |
0 | 32,620,973 | 2,952,115 | 35,573,088 | ||||||||||||
| Rights |
||||||||||||||||
| Utilities |
0 | 559,650 | 0 | 559,650 | ||||||||||||
| Yankee corporate bonds and notes |
0 | 77,221,065 | 9,638 | 77,230,703 | ||||||||||||
| Short-term investments |
||||||||||||||||
| Investment companies |
24,808,767 | 0 | 0 | 24,808,767 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
$ | 27,520,200 | $ | 853,431,327 | $ | 2,961,753 | $ | 883,913,280 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At July 31, 2017, the Fund did not have any transfers between Level 1 and Level 2. Bank loans with a market value of $8,511,862 were transferred from Level 3 to Level 2 due to an increase in the number of market contributors.
ITEM 2. CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that the Wells Fargo Income Opportunities Fund (the “Fund”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Fund is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the Fund’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Wells Fargo Income Opportunities Fund | ||
| By: | /s/ Andrew Owen | |
| Andrew Owen | ||
| President | ||
| Date: | September 25, 2017 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| Wells Fargo Income Opportunities Fund | ||
| By: | /s/ Andrew Owen | |
| Andrew Owen | ||
| President | ||
| Date: | September 25, 2017 | |
| By: | /s/ Jeremy DePalma | |
| Jeremy DePalma | ||
| Treasurer | ||
| Date: | September 25, 2017 | |