Edgar Filing: WELLS FARGO INCOME OPPORTUNITIES FUND

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: 811-21269

Wells Fargo Income Opportunities 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)

Alexander Kymn

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: April 30

Registrant is making a filing for Wells Fargo Income Opportunities Fund.

Date of reporting period: January 31, 2019

ITEM 1.

INVESTMENTS


Wells Fargo Income Opportunities Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name					Shares		Value
Common Stocks : 0.00%

Materials : 0.00%

Chemicals : 0.00%
LyondellBasell Industries NV Class A						7	$	609

Total Common Stocks (Cost $606)								609


	Interest rate			Maturity date	Principal
Corporate Bonds and Notes : 121.28%

Communication Services : 19.55%

Diversified Telecommunication Services : 1.89%

GCI Incorporated		6.75	%	6-1-2021	$	2,625,000		2,634,844
Level 3 Financing Incorporated		5.13		5-1-2023		1,595,000		1,581,044
Level 3 Financing Incorporated		5.38		8-15-2022		2,545,000		2,564,851
Level 3 Financing Incorporated		5.38		1-15-2024		1,125,000		1,119,375
Level 3 Financing Incorporated		5.63		2-1-2023		1,350,000		1,356,750
Level 3 Financing Incorporated		6.13		1-15-2021		1,690,000		1,694,225

								10,951,089

Entertainment : 0.65%

Live Nation Entertainment Incorporated 144A		4.88		11-1-2024		2,450,000		2,413,250
Live Nation Entertainment Incorporated 144A		5.38		6-15-2022		790,000		795,925
Live Nation Entertainment Incorporated 144A		5.63		3-15-2026		525,000		530,250

								3,739,425

Media : 14.08%

CCO Holdings LLC 144A		4.00		3-1-2023		175,000		170,686
CCO Holdings LLC 144A		5.00		2-1-2028		375,000		356,250
CCO Holdings LLC		5.13		2-15-2023		2,266,000		2,288,660
CCO Holdings LLC 144A		5.13		5-1-2023		2,965,000		3,004,672
CCO Holdings LLC 144A		5.13		5-1-2027		750,000		725,625
CCO Holdings LLC		5.25		9-30-2022		2,048,000		2,070,374
CCO Holdings LLC 144A		5.38		5-1-2025		7,000,000		7,037,100
CCO Holdings LLC 144A		5.50		5-1-2026		325,000		324,188
CCO Holdings LLC 144A		5.75		2-15-2026		5,675,000		5,774,313
CCO Holdings LLC 144A		5.88		4-1-2024		2,350,000		2,409,314
Cinemark USA Incorporated		4.88		6-1-2023		1,125,000		1,113,750
CSC Holdings LLC 144A		5.38		7-15-2023		3,000,000		3,030,000
CSC Holdings LLC 144A		5.38		2-1-2028		1,125,000		1,081,406
CSC Holdings LLC 144A		5.50		5-15-2026		2,425,000		2,400,750
CSC Holdings LLC 144A		7.75		7-15-2025		3,825,000		4,006,688
CSC Holdings LLC		8.63		2-15-2019		635,000		635,794
Dish Direct Broadcast Satellite Corporation		7.75		7-1-2026		925,000		796,656
Dish Network Corporation		3.38		8-15-2026		3,125,000		2,654,688
EMI Music Publishing Group 144A		7.63		6-15-2024		3,853,000		4,086,800
Gray Television Incorporated 144A		5.13		10-15-2024		2,400,000		2,332,500
Gray Television Incorporated 144A		5.88		7-15-2026		6,700,000		6,582,750
Gray Television Incorporated 144A		7.00		5-15-2027		675,000		701,730
Lamar Media Corporation		5.38		1-15-2024		725,000		741,313
Lamar Media Corporation 144A%%		5.75		2-1-2026		200,000		207,120
National CineMedia LLC		6.00		4-15-2022		7,000,000		7,052,500
Nexstar Broadcasting Group Incorporated		5.88		11-15-2022		425,000		430,440
Nexstar Broadcasting Group Incorporated 144A		6.13		2-15-2022		3,040,000		3,062,800
Nielsen Finance LLC 144A		5.00		4-15-2022		2,195,000		2,191,708
Outfront Media Capital Corporation		5.25		2-15-2022		320,000		323,200
Outfront Media Capital Corporation		5.63		2-15-2024		960,000		970,800
Outfront Media Capital Corporation		5.88		3-15-2025		1,275,000		1,287,750
Salem Media Group Incorporated 144A		6.75		6-1-2024		6,225,000		5,602,500
The E.W. Scripps Company 144A		5.13		5-15-2025		6,194,000		5,915,270

								81,370,095


1


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Income Opportunities Fund


Security name	Interest rate			Maturity date	Principal		Value
Wireless Telecommunication Services : 2.93%

Sprint Capital Corporation		6.88	%	11-15-2028	$	2,600,000	$	2,583,750
Sprint Capital Corporation		8.75		3-15-2032		2,950,000		3,237,625
Sprint Communications Incorporated 144A		7.00		3-1-2020		200,000		205,750
Sprint Communications Incorporated		7.00		8-15-2020		380,000		394,250
T-Mobile USA Incorporated		4.00		4-15-2022		1,075,000		1,065,594
T-Mobile USA Incorporated		4.50		2-1-2026		225,000		219,094
T-Mobile USA Incorporated		4.75		2-1-2028		225,000		215,719
T-Mobile USA Incorporated		5.13		4-15-2025		725,000		732,250
T-Mobile USA Incorporated		5.38		4-15-2027		2,050,000		2,065,375
T-Mobile USA Incorporated		6.00		3-1-2023		600,000		615,000
T-Mobile USA Incorporated		6.00		4-15-2024		275,000		281,875
T-Mobile USA Incorporated		6.38		3-1-2025		3,050,000		3,164,375
T-Mobile USA Incorporated		6.50		1-15-2024		140,000		144,900
T-Mobile USA Incorporated		6.50		1-15-2026		1,900,000		2,009,250

								16,934,807

Consumer Discretionary : 14.95%

Auto Components : 2.74%

Allison Transmission Incorporated 144A		4.75		10-1-2027		1,695,000		1,576,350
Allison Transmission Incorporated 144A		5.00		10-1-2024		8,475,000		8,347,875
Cooper Tire & Rubber Company		7.63		3-15-2027		5,190,000		5,488,425
Cooper Tire & Rubber Company		8.00		12-15-2019		400,000		411,500

								15,824,150

Distributors : 0.51%
LKQ Corporation		4.75		5-15-2023		2,915,000		2,929,575

Diversified Consumer Services : 2.38%

Carriage Services Incorporated 144A		6.63		6-1-2026		1,125,000		1,127,813
Service Corporation International		4.63		12-15-2027		1,325,000		1,291,875
Service Corporation International		5.38		5-15-2024		75,000		76,594
Service Corporation International		7.50		4-1-2027		8,700,000		9,483,000
Service Corporation International		8.00		11-15-2021		1,635,000		1,778,063

								13,757,345

Hotels, Restaurants & Leisure : 2.74%

CCM Merger Incorporated 144A		6.00		3-15-2022		8,475,000		8,559,750
Hilton Domestic Operating Company Incorporated 144A		5.13		5-1-2026		1,175,000		1,183,813
KFC Holding Company 144A		5.00		6-1-2024		2,075,000		2,074,378
Wyndham Hotels & Resorts Company 144A		5.38		4-15-2026		4,025,000		4,025,000

								15,842,941

Specialty Retail : 5.70%

Asbury Automotive Group Incorporated		6.00		12-15-2024		7,200,000		7,236,000
Group 1 Automotive Incorporated		5.00		6-1-2022		2,259,000		2,239,234
Group 1 Automotive Incorporated 144A		5.25		12-15-2023		3,275,000		3,144,000
Levi Strauss & Company		5.00		5-1-2025		200,000		201,000
Lithia Motors Incorporated 144A		5.25		8-1-2025		6,825,000		6,586,125
Penske Auto Group Incorporated		3.75		8-15-2020		1,045,000		1,038,469
Penske Auto Group Incorporated		5.38		12-1-2024		5,398,000		5,330,525
Penske Auto Group Incorporated		5.75		10-1-2022		2,325,000		2,359,875
Sonic Automotive Incorporated		5.00		5-15-2023		3,400,000		3,238,500
Sonic Automotive Incorporated		6.13		3-15-2027		1,799,000		1,569,628

								32,943,356

Textiles, Apparel & Luxury Goods : 0.88%

The William Carter Company		5.25		8-15-2021		1,200,000		1,203,000
Wolverine World Wide Incorporated 144A		5.00		9-1-2026		4,100,000		3,886,800

								5,089,800


		2


Wells Fargo Income Opportunities Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Consumer Staples : 1.75%

Beverages : 0.19%
Cott Beverages Incorporated 144A		5.50	%	4-1-2025	$	1,125,000	$	1,113,750

Food Products : 1.24%

B&G Foods Incorporated		4.63		6-1-2021		670,000		673,551
B&G Foods Incorporated		5.25		4-1-2025		1,750,000		1,715,875
Darling Ingredients Incorporated		5.38		1-15-2022		295,000		296,475
Lamb Weston Holdings Incorporated 144A		4.63		11-1-2024		375,000		373,125
Lamb Weston Holdings Incorporated 144A		4.88		11-1-2026		75,000		74,363
Pilgrim’s Pride Corporation 144A		5.75		3-15-2025		2,360,000		2,312,800
Pilgrim’s Pride Corporation 144A		5.88		9-30-2027		400,000		386,000
Prestige Brands Incorporated 144A		6.38		3-1-2024		660,000		656,700
US Foods Incorporated 144A		5.88		6-15-2024		670,000		681,584

								7,170,473

Household Products : 0.32%

Central Garden & Pet Company		5.13		2-1-2028		400,000		373,000
Central Garden & Pet Company		6.13		11-15-2023		405,000		414,113
Spectrum Brands Incorporated		5.75		7-15-2025		775,000		763,608
Spectrum Brands Incorporated		6.63		11-15-2022		250,000		256,250

								1,806,971

Energy : 28.12%

Energy Equipment & Services : 8.64%

Bristow Group Incorporated		6.25		10-15-2022		9,325,000		4,336,125
Bristow Group Incorporated 144A		8.75		3-1-2023		1,550,000		1,296,188
Diamond Offshore Drilling Incorporated		4.88		11-1-2043		2,875,000		1,768,125
Era Group Incorporated		7.75		12-15-2022		4,745,000		4,650,100
Hilcorp Energy Company 144A		5.00		12-1-2024		3,100,000		2,945,000
Hilcorp Energy Company 144A		5.75		10-1-2025		4,195,000		4,079,638
Hilcorp Energy Company 144A		6.25		11-1-2028		1,450,000		1,413,750
Hornbeck Offshore Services Incorporated		1.50		9-1-2019		7,847,000		6,277,600
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		2,450,000		1,519,000
NGPL PipeCo LLC 144A		4.38		8-15-2022		850,000		857,089
NGPL PipeCo LLC 144A		4.88		8-15-2027		1,050,000		1,039,500
NGPL PipeCo LLC 144A		7.77		12-15-2037		12,550,000		14,961,357
Oceaneering International Incorporated		6.00		2-1-2028		3,075,000		2,629,125
USA Compression Partners LP		6.88		4-1-2026		2,150,000		2,150,000

								49,922,597

Oil, Gas & Consumable Fuels : 19.48%

Andeavor Logistics LP		5.25		1-15-2025		1,150,000		1,163,375
Archrock Partners LP		6.00		10-1-2022		1,650,000		1,608,750
Carrizo Oil & Gas Incorporated		8.25		7-15-2025		1,600,000		1,648,000
Cheniere Corpus Christi Holdings LLC		5.13		6-30-2027		2,200,000		2,219,250
Cheniere Energy Partners LP		5.25		10-1-2025		9,375,000		9,421,781
Cheniere Energy Partners LP 144A		5.63		10-1-2026		1,225,000		1,227,891
Continental Resources Incorporated		3.80		6-1-2024		2,000,000		1,976,363
DCP Midstream Operating LP		2.70		4-1-2019		1,425,000		1,423,148
Denbury Resources Incorporated		6.38		8-15-2021		6,205,000		5,119,125
Denbury Resources Incorporated 144A		9.25		3-31-2022		1,362,000		1,338,165
Enable Midstream Partner LP		2.40		5-15-2019		5,475,000		5,457,865
Enable Oklahoma Intrastate Transmission LLC 144A		6.25		3-15-2020		1,100,000		1,129,945
EnLink Midstream Partners LP		4.15		6-1-2025		200,000		187,250
EnLink Midstream Partners LP		4.40		4-1-2024		6,450,000		6,171,844
EnLink Midstream Partners LP		4.85		7-15-2026		2,275,000		2,132,813
Exterran Partners LP		6.00		4-1-2021		5,075,000		5,005,219
Gulfport Energy Corporation		6.00		10-15-2024		1,625,000		1,527,500
Kinder Morgan Incorporated		6.50		9-15-2020		1,155,000		1,211,035
Kinder Morgan Incorporated		7.42		2-15-2037		1,820,000		2,033,431
Murphy Oil Corporation		4.45		12-1-2022		3,200,000		3,145,203
Murphy Oil Corporation		5.75		8-15-2025		360,000		361,332


3


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Income Opportunities Fund


Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels (continued)

Murphy Oil Corporation		6.88	%	8-15-2024	$	1,600,000	$	1,671,736
Nabors Industries Incorporated		0.75		1-15-2024		2,850,000		1,911,281
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		7,320,000		7,448,100
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		5,300,000		5,671,000
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		1,150,000		1,310,655
Rose Rock Midstream LP		5.63		7-15-2022		2,450,000		2,327,500
Rose Rock Midstream LP		5.63		11-15-2023		1,850,000		1,720,500
Sabine Pass Liquefaction LLC		5.63		2-1-2021		2,275,000		2,354,611
Sabine Pass Liquefaction LLC		6.25		3-15-2022		3,075,000		3,276,463
SemGroup Corporation		6.38		3-15-2025		5,725,000		5,368,905
SemGroup Corporation		7.25		3-15-2026		2,869,000		2,739,895
Southern Star Central Corporation 144A		5.13		7-15-2022		3,062,000		2,993,105
Southwestern Energy Company		6.20		1-23-2025		75,000		72,938
Southwestern Energy Company		7.50		4-1-2026		750,000		772,500
Southwestern Energy Company		7.75		10-1-2027		750,000		772,500
Summit Midstream Holdings LLC		5.75		4-15-2025		500,000		468,750
Tallgrass Energy Partners LP 144A		5.50		9-15-2024		12,825,000		12,857,063
Tesoro Logistics LP		6.38		5-1-2024		725,000		754,000
Ultra Resources Incorporated 144A		7.13		4-15-2025		8,900,000		2,581,000

								112,581,787

Financials : 6.80%

Banks : 0.06%

Citigroup Incorporated		4.13		3-9-2021		115,000		115,288
Citigroup Incorporated		6.13		3-9-2028		205,000		217,300

								332,588

Capital Markets : 0.12%
MSCI Incorporated 144A		5.38		5-15-2027		675,000		690,188

Consumer Finance : 2.59%

Ally Financial Incorporated		7.50		9-15-2020		300,000		316,125
Ally Financial Incorporated		8.00		3-15-2020		3,016,000		3,155,490
FirstCash Incorporated 144A		5.38		6-1-2024		2,985,000		2,985,000
Navient Corporation		8.00		3-25-2020		2,725,000		2,837,406
Springleaf Finance Corporation		6.00		6-1-2020		1,800,000		1,829,250
Springleaf Finance Corporation		7.13		3-15-2026		2,425,000		2,309,813
Springleaf Finance Corporation		8.25		12-15-2020		75,000		80,063
Springleaf Finance Corporation		8.25		10-1-2023		1,342,000		1,442,650

								14,955,797

Diversified Financial Services : 2.99%

LPL Holdings Incorporated 144A		5.75		9-15-2025		16,625,000		16,347,363
Vantiv LLC 144A		4.38		11-15-2025		975,000		935,981

								17,283,344

Insurance : 1.04%

AmWINS Group Incorporated 144A		7.75		7-1-2026		2,200,000		2,194,500
HUB International Limited 144A		7.00		5-1-2026		1,300,000		1,261,000
USIS Merger Subordinate Incorporated 144A		6.88		5-1-2025		2,700,000		2,591,190

								6,046,690

Health Care : 13.06%

Health Care Equipment & Supplies : 2.41%

Hill-Rom Holdings Incorporated 144A		5.00		2-15-2025		975,000		972,563
Hill-Rom Holdings Incorporated 144A		5.75		9-1-2023		500,000		515,000
Hologic Incorporated 144A		4.38		10-15-2025		4,700,000		4,615,964
Hologic Incorporated 144A		4.63		2-1-2028		475,000		458,375
Kinetics Concepts Incorporated 144A		7.88		2-15-2021		4,000,000		4,080,000
Surgery Center Holdings Incorporated 144A		6.75		7-1-2025		1,000,000		925,000


		4


Wells Fargo Income Opportunities Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Health Care Equipment & Supplies (continued)

Surgery Center Holdings Incorporated 144A		8.88	%	4-15-2021	$	2,325,000	$	2,371,500

								13,938,402

Health Care Providers & Services : 9.16%

Acadia Healthcare Company Incorporated		5.13		7-1-2022		190,000		186,913
Acadia Healthcare Company Incorporated		6.50		3-1-2024		310,000		305,350
Centene Corporation 144A		5.38		6-1-2026		1,425,000		1,477,084
Centene Corporation		6.13		2-15-2024		650,000		680,875
CHS Incorporated		5.13		8-1-2021		6,350,000		6,103,938
Davita Incorporated		5.00		5-1-2025		2,125,000		2,045,313
Encompass Health Corporation		5.75		11-1-2024		175,000		176,969
HCA Incorporated		5.88		3-15-2022		750,000		794,070
HCA Incorporated		6.50		2-15-2020		6,525,000		6,704,438
HealthSouth Corporation		5.75		9-15-2025		1,725,000		1,742,250
MEDNAX Incorporated 144A		5.25		12-1-2023		1,220,000		1,224,575
MEDNAX Incorporated 144A		6.25		1-15-2027		750,000		752,813
MPH Acquisition Holdings LLC 144A		7.13		6-1-2024		6,900,000		6,851,700
MPT Operating Partnership LP		5.00		10-15-2027		2,275,000		2,214,713
MPT Operating Partnership LP		5.25		8-1-2026		3,200,000		3,216,000
MPT Operating Partnership LP		6.38		3-1-2024		515,000		538,175
NVA Holdings Company 144A		6.88		4-1-2026		425,000		405,748
Polaris Intermediate Corporation 144A		8.50		12-1-2022		1,200,000		1,152,000
Select Medical Corporation		6.38		6-1-2021		6,930,000		6,964,650
Tenet Healthcare Corporation		4.63		7-15-2024		614,000		601,401
Tenet Healthcare Corporation		6.00		10-1-2020		575,000		593,860
Vizient Incorporated 144A		10.38		3-1-2024		7,235,000		7,840,931
WellCare Health Plans Incorporated 144A		5.38		8-15-2026		350,000		357,875

								52,931,641

Health Care Technology : 1.35%

Change Healthcare Holdings Incorporated 144A		5.75		3-1-2025		6,300,000		6,032,250
Quintiles IMS Holdings Incorporated 144A		4.88		5-15-2023		1,375,000		1,390,469
Quintiles IMS Holdings Incorporated 144A		5.00		10-15-2026		375,000		376,875

								7,799,594

Life Sciences Tools & Services : 0.14%
Charles River Laboratories Incorporated 144A		5.50		4-1-2026		800,000		818,000

Industrials : 7.31%

Aerospace & Defense : 0.14%
RBS Global & Rexnord LLC 144A		4.88		12-15-2025		825,000		796,125

Airlines : 1.15%

Aviation Capital Group Corporation 144A		6.75		4-6-2021		2,190,000		2,315,452
BBA US Holdings Incorporated 144A		5.38		5-1-2026		4,350,000		4,350,000

								6,665,452

Commercial Services & Supplies : 4.84%

Acco Brands Corporation 144A		5.25		12-15-2024		725,000		708,688
Advanced Disposal Services Incorporated 144A		5.63		11-15-2024		6,140,000		6,155,350
Aramark Services Incorporated 144A		5.00		2-1-2028		450,000		439,313
Aramark Services Incorporated 144A		5.00		4-1-2025		200,000		201,000
Aramark Services Incorporated		5.13		1-15-2024		1,256,000		1,269,075
Covanta Holding Corporation		5.88		3-1-2024		5,000,000		4,987,500
Covanta Holding Corporation		5.88		7-1-2025		1,500,000		1,470,000
Covanta Holding Corporation		6.00		1-1-2027		750,000		718,125
KAR Auction Services Incorporated 144A		5.13		6-1-2025		11,725,000		11,297,976
Waste Pro USA Incorporated 144A		5.50		2-15-2026		725,000		704,519

								27,951,546


5


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Income Opportunities Fund


Security name	Interest rate			Maturity date	Principal		Value
Electrical Equipment : 0.28%
Resideo Funding Incorporated 144A		6.13	%	11-1-2026	$	1,550,000	$	1,596,500

Machinery : 0.90%

Stevens Holding Company Incorporated 144A		6.13		10-1-2026		3,600,000		3,637,368
Trimas Corporation 144A		4.88		10-15-2025		1,627,000		1,578,190

								5,215,558

Information Technology : 9.48%

Communications Equipment : 0.25%
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		1,550,000		1,464,750

IT Services : 3.80%

Cardtronics Incorporated 144A		5.50		5-1-2025		5,400,000		5,150,250
First Data Corporation 144A		5.00		1-15-2024		800,000		817,500
First Data Corporation 144A		5.38		8-15-2023		600,000		611,625
First Data Corporation 144A		5.75		1-15-2024		2,100,000		2,157,750
Gartner Incorporated 144A		5.13		4-1-2025		5,250,000		5,223,750
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13		5-1-2021		1,260,000		1,269,450
Infor US Incorporated		6.50		5-15-2022		875,000		890,313
Zayo Group LLC 144A		5.75		1-15-2027		1,300,000		1,256,047
Zayo Group LLC		6.38		5-15-2025		4,697,000		4,585,446

								21,962,131

Software : 0.82%

CDK Global Incorporated		4.88		6-1-2027		425,000		412,250
CDK Global Incorporated		5.00		10-15-2024		1,050,000		1,047,375
CDK Global Incorporated		5.88		6-15-2026		650,000		663,813
Fair Isaac Corporation 144A		5.25		5-15-2026		1,475,000		1,482,375
Symantec Corporation 144A		5.00		4-15-2025		1,150,000		1,144,709

								4,750,522

Technology Hardware, Storage & Peripherals : 4.61%

Dell International LLC 144A		5.88		6-15-2021		5,125,000		5,208,139
Dell International LLC 144A		7.13		6-15-2024		10,175,000		10,730,571
NCR Corporation		5.88		12-15-2021		380,000		381,425
NCR Corporation		6.38		12-15-2023		10,268,000		10,293,670

								26,613,805

Materials : 5.02%

Chemicals : 0.11%
Valvoline Incorporated		5.50		7-15-2024		625,000		634,375

Containers & Packaging : 4.71%

Ball Corporation		4.00		11-15-2023		250,000		250,600
Ball Corporation		4.88		3-15-2026		1,100,000		1,119,938
Ball Corporation		5.25		7-1-2025		630,000		660,713
Berry Global Incorporated		5.13		7-15-2023		700,000		701,981
Berry Global Incorporated		6.00		10-15-2022		750,000		766,875
Crown Americas Capital Corporation VI %%		4.75		2-1-2026		1,700,000		1,661,750
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		2,910,000		3,175,538
Flex Acquisition Company Incorporated 144A		6.88		1-15-2025		3,675,000		3,436,125
Flex Acquisition Company Incorporated 144A		7.88		7-15-2026		750,000		712,500
Owens-Brockway Glass Container Incorporated 144A		5.38		1-15-2025		925,000		921,531
Owens-Brockway Glass Container Incorporated 144A		5.88		8-15-2023		1,300,000		1,345,500
Owens-Illinois Incorporated 144A		6.38		8-15-2025		7,850,000		8,203,250
Reynolds Group Issuer Incorporated 144A		5.13		7-15-2023		1,451,000		1,453,684
Sealed Air Corporation 144A		5.13		12-1-2024		2,350,000		2,374,205
Silgan Holdings Incorporated		5.50		2-1-2022		445,000		446,113

								27,230,303


		6


Wells Fargo Income Opportunities Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Metals & Mining : 0.20%

Indalex Holdings Corporation (a)††		11.50	%	2-1-2020	$	5,985,000	$	0
Novelis Corporation 144A		5.88		9-30-2026		850,000		821,313
Novelis Corporation 144A		6.25		8-15-2024		325,000		328,250

								1,149,563

Real Estate : 8.00%

Equity REITs : 8.00%

CoreCivic Incorporated		4.63		5-1-2023		800,000		750,000
CoreCivic Incorporated		5.00		10-15-2022		2,325,000		2,243,625
Crown Castle International Corporation		5.25		1-15-2023		4,385,000		4,620,104
Equinix Incorporated		5.75		1-1-2025		2,475,000		2,543,063
Equinix Incorporated		5.88		1-15-2026		2,450,000		2,534,525
ESH Hospitality Incorporated 144A		5.25		5-1-2025		7,800,000		7,711,080
Iron Mountain Incorporated 144A		4.38		6-1-2021		2,500,000		2,493,750
Iron Mountain Incorporated 144A		5.25		3-15-2028		1,325,000		1,232,250
Iron Mountain Incorporated 144A		5.38		6-1-2026		2,175,000		2,068,969
Iron Mountain Incorporated		6.00		8-15-2023		5,185,000		5,314,625
Sabra Health Care LP		5.38		6-1-2023		2,100,000		2,089,500
Sabra Health Care LP		5.50		2-1-2021		2,335,000		2,358,350
SBA Communications Corporation		4.00		10-1-2022		300,000		296,250
SBA Communications Corporation		4.88		7-15-2022		1,485,000		1,504,008
The Geo Group Incorporated		5.13		4-1-2023		1,874,000		1,710,025
The Geo Group Incorporated		5.88		1-15-2022		2,595,000		2,526,881
The Geo Group Incorporated		5.88		10-15-2024		2,925,000		2,647,125
The Geo Group Incorporated		6.00		4-15-2026		1,760,000		1,573,000

								46,217,130

Utilities : 7.24%

Electric Utilities : 0.60%

NextEra Energy Operating Partners LP 144A		4.25		9-15-2024		350,000		333,480
NextEra Energy Operating Partners LP 144A		4.50		9-15-2027		3,450,000		3,137,344

								3,470,824

Gas Utilities : 0.50%

AmeriGas Partners LP		5.63		5-20-2024		200,000		197,500
AmeriGas Partners LP		5.75		5-20-2027		2,250,000		2,148,750
Suburban Propane Partners LP		5.88		3-1-2027		575,000		543,375

								2,889,625

Independent Power & Renewable Electricity Producers : 6.14%

NSG Holdings LLC 144A		7.75		12-15-2025		8,077,068		8,602,078
Pattern Energy Group Incorporated 144A		5.88		2-1-2024		11,518,000		11,258,845
TerraForm Global Operating LLC 144A		6.13		3-1-2026		2,800,000		2,674,000
TerraForm Power Operating LLC 144A		4.25		1-31-2023		7,225,000		7,062,438
TerraForm Power Operating LLC 144A		5.00		1-31-2028		2,250,000		2,089,688
TerraForm Power Operating LLC 144A		6.63		6-15-2025		3,600,000		3,780,000

								35,467,049

Total Corporate Bonds and Notes (Cost $714,252,262)								700,849,663

Loans : 5.71%

Communication Services : 1.55%

Media : 1.55%

Ancestry.com Incorporated (1 Month LIBOR +3.25%) ±		5.75		10-19-2023		7,731,375		7,582,546
Hubbard Radio LLC (1 Month LIBOR +3.50%) ±<		6.02		3-28-2025		1,425,000		1,400,063

								8,982,609


7


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Income Opportunities Fund


Security name	Interest rate			Maturity date	Principal		Value
Consumer Discretionary : 1.78%

Hotels, Restaurants & Leisure : 1.78%

CCM Merger Incorporated (1 Month LIBOR +2.25%) ±		4.75	%	8-8-2021	$	712,667	$	704,115
Montreign Operating Company LLC (3 Month LIBOR +8.25%) ±		10.96		1-24-2023		10,344,910		9,569,041

								10,273,156

Energy : 0.54%

Oil, Gas & Consumable Fuels : 0.54%

Encino Acquisition Partners Holdings LLC (1 Month LIBOR +6.75%) ±‡		9.25		10-29-2025		1,225,000		1,172,938
Ultra Resources Incorporated (1 Month LIBOR +4.00%) ±		6.50		4-12-2024		2,200,000		1,961,674

								3,134,612

Financials : 0.36%

Diversified Financial Services : 0.36%
Resolute Investment Managers Incorporated (3 Month LIBOR +7.50%) ±‡		10.24		4-30-2023		2,110,000		2,078,350

Health Care : 0.38%

Health Care Providers & Services : 0.02%
Press Ganey Holdings Incorporated (1 Month LIBOR +6.50%) ±‡		9.00		10-21-2024		112,360		111,377

Health Care Technology : 0.36%
Emerald Bidco Incorporated (1 Month LIBOR +2.75%) ±		5.25		10-23-2023		2,099,612		2,061,987

Industrials : 0.26%

Commercial Services & Supplies : 0.26%
Advantage Sales & Marketing LLC (1 Month LIBOR +6.50%) ±		9.00		7-25-2022		2,025,000		1,521,281

Information Technology : 0.26%

IT Services : 0.26%
First Data Corporation (1 Month LIBOR +2.00%) ±		4.52		4-26-2024		1,525,000		1,518,809

Materials : 0.20%

Containers & Packaging : 0.20%
Reynolds Group Holdings Incorporated (1 Month LIBOR +2.75%) ±		5.25		2-5-2023		1,196,947		1,178,885

Real Estate : 0.22%

Real Estate Management & Development : 0.22%
Capital Automotive LP (1 Month LIBOR +6.00%) ±		8.50		3-24-2025		1,262,425		1,252,957

Utilities : 0.16%

Independent Power & Renewable Electricity Producers : 0.16%
Vistra Energy Corporation (1 Month LIBOR +2.25%) ±		4.75		12-14-2023		906,500		896,492

Total Loans (Cost $34,581,088)								33,010,515


				Expiration date	Shares
Rights : 0.07%

Utilities : 0.07%

Independent Power & Renewable Electricity Producers : 0.07%
Vistra Energy Corporation †				12-14-2023		559,650		408,545

Total Rights (Cost $582,794)								408,545


		8


Wells Fargo Income Opportunities Fund		Portfolio of investments — January 31, 2019 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Yankee Corporate Bonds and Notes : 10.80%

Communication Services : 0.15%

Diversified Telecommunication Services : 0.15%
Intelsat Luxembourg SA		8.13	%	6-1-2023	$	1,000,000	$	831,846

Energy : 2.50%

Energy Equipment & Services : 0.86%
Ensco plc		5.75		10-1-2044		7,652,000		4,992,930

Oil, Gas & Consumable Fuels : 1.64%

Baytex Energy Corporation 144A		5.13		6-1-2021		2,450,000		2,407,125
Baytex Energy Corporation 144A		5.63		6-1-2024		3,584,000		3,225,600
Griffin Coal Mining Company Limited 144A(a)††		9.50		12-1-2016		1,410,935		0
Griffin Coal Mining Company Limited (a)††		9.50		12-1-2016		193,118		0
Rockpoint Gas Storage 144A		7.00		3-31-2023		2,950,000		2,876,250
Teekay Corporation		8.50		1-15-2020		950,000		943,350

								9,452,325

Financials : 3.26%

Banks : 0.97%

Intelsat Connect Finance Company 144A		9.50		2-15-2023		825,000		769,313
Nielsen Holding and Finance BV 144A		5.00		2-1-2025		4,000,000		3,970,000
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		850,000		856,630
Preferred Term Securities XII Limited (a)††		0.00		12-24-2033		1,540,000		0

								5,595,943

Diversified Financial Services : 2.29%

Intelsat Jackson Holdings SA		5.50		8-1-2023		10,515,000		9,555,506
Intelsat Jackson Holdings SA 144A		8.00		2-15-2024		225,000		234,281
Intelsat Jackson Holdings SA 144A		8.50		10-15-2024		3,400,000		3,434,000

								13,223,787

Health Care : 2.50%

Pharmaceuticals : 2.50%

Bausch Health Companies Incorporated 144A		5.50		3-1-2023		3,950,000		3,846,313
Bausch Health Companies Incorporated 144A		5.50		11-1-2025		925,000		922,558
Bausch Health Companies Incorporated 144A		5.88		5-15-2023		3,600,000		3,526,632
Bausch Health Companies Incorporated 144A		6.13		4-15-2025		3,875,000		3,661,875
Bausch Health Companies Incorporated 144A		6.50		3-15-2022		525,000		542,719
Bausch Health Companies Incorporated 144A		7.00		3-15-2024		1,100,000		1,154,313
Bausch Health Companies Incorporated 144A		8.50		1-31-2027		750,000		783,750

								14,438,160

Industrials : 1.83%

Commercial Services & Supplies : 1.48%
Ritchie Brothers Auctioneers Incorporated 144A		5.38		1-15-2025		8,500,000		8,542,500

Electrical Equipment : 0.35%

Sensata Technologies BV 144A		5.00		10-1-2025		770,000		773,850
Sensata Technologies BV 144A		6.25		2-15-2026		1,225,000		1,277,063

								2,050,913

Materials : 0.56%

Containers & Packaging : 0.56%

Ardagh Packaging Finance plc 144A		4.25		9-15-2022		600,000		593,880


9


Portfolio of investments — January 31, 2019 (unaudited)		Wells Fargo Income Opportunities Fund


Security name			Interest rate			Maturity date		Principal		Value
Containers & Packaging (continued)

Ardagh Packaging Finance plc 144A				4.63	%		5-15-2023	$	275,000	$	275,000
Ardagh Packaging Finance plc 144A				7.25			5-15-2024		1,300,000		1,347,125
OI European Group BV 144A				4.00			3-15-2023		1,075,000		1,040,063

											3,256,068
Total Yankee Corporate Bonds and Notes (Cost $64,946,783)											62,384,472

			Yield					Shares
Short-Term Investments : 0.51%

Investment Companies : 0.51%
Wells Fargo Government Money Market Fund Select Class (l)(u)##				2.33					2,930,491		2,930,491
Total Short-Term Investments (Cost $2,930,491)											2,930,491
Total investments in securities (Cost $817,294,024)	138.37	%									799,584,295
Other assets and liabilities, net	(38.37	)									(221,722,954	)

Total net assets	100.00	%								$	577,861,341

144A

The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

%%	The 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.

(a)

The security is fair valued in accordance with procedures approved by the Board of Trustees.

††	On the last interest date, partial interest was paid.

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

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

‡	Security is valued using significant unobservable inputs.

†	Non-income-earning security

(l)

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

(u)

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

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

Abbreviations:

LIBOR

London Interbank Offered Rate

REIT

Real estate investment trust


		10

Investments in Affiliates

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


	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Value, end of period		% of net assets
Short-Term Investments
Investment Companies
Wells Fargo Government Money Market Fund Select Class		44,347,095		81,336,113		122,752,717		2,930,491	$	2,930,491		0.51	%

Wells Fargo Income Opportunities Fund (the “Fund”)

Notes to Portfolio of investments – January 31, 2019 (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 (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at 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 Wells Fargo Asset Management Pricing Committee which may include items for ratification.

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.

As of January 31, 2019, the Fund had unfunded loan commitments of $1,410,686.

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 January 31, 2019:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Materials	$	609	$	0	$	0	$	609
Corporate bonds and notes		0		700,849,663		0		700,849,663
Loans		0		29,647,850		3,362,665		33,010,515
Rights
Utilities		0		408,545		0		408,545
Yankee corporate bonds and notes		0		62,384,472		0		62,384,472
Short-term investments
Investment companies		2,930,491		0		0		2,930,491

Total assets	$	2,931,100	$	793,290,530	$	3,362,665	$	799,584,295

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

At January 31, 2019, the Fund had no material transfers into/out of Level 3.

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: March 27, 2019

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: March 27, 2019

By:		/s/ Jeremy DePalma

		Jeremy DePalma
		Treasurer

Date: March 27, 2019