Edgar Filing: WELLS FARGO ADVANTAGE MULTI-SECTOR INCOME FUND

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21331

Wells Fargo Advantage Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

525 Market Street, 12^th Floor, San Francisco, CA 94105
(Address of principal executive offices) (Zip code)

C. David Messman
Wells Fargo Funds Management, LLC
525 Market Street, 12^th Floor, San Francisco, CA 94105
(Name and address of agent for service)

Registrant’s telephone number, including area code: 800-643-9691

Date of fiscal year end: October 31, 2010

Date of reporting period: January 31, 2011

TABLE OF CONTENTS


	ITEM 1. SCHEDULE OF INVESTMENTS
	ITEM 2. CONTROLS AND PROCEDURES
SIGNATURES
Certifications

ITEM 1. SCHEDULE OF INVESTMENTS

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 30.30%
Federal Home Loan Bank: 1.79%
$	558,399	FHLB ±		2.68	%		11/01/2030	$	586,136
	293,258	FHLB ±		2.99			07/01/2033		294,775
	7,542,205	FHLB¤±		2.61			12/01/2034		7,937,335
	3,433,083	FHLB¤±		2.68			06/01/2035		3,620,411

									12,438,657

Federal Home Loan Mortgage Corporation: 10.36%
	15,411,843	FHLMC¤±		2.59			04/01/2034		16,180,995
	2,008,346	FHLMC ±		2.60			08/01/2035		2,108,738
	5,624,482	FHLMC ±		2.60			09/01/2035		5,886,423
	5,750,789	FHLMC¤±		2.63			08/01/2035		6,035,464
	526,293	FHLMC ±		2.65			09/01/2032		552,006
	200,614	FHLMC ±		2.69			10/01/2033		210,783
	358,180	FHLMC ±		2.72			10/01/2030		377,191
	450,333	FHLMC ±		2.74			07/01/2032		453,351
	3,670,133	FHLMC ±		2.78			01/01/2038		3,851,823
	7,320,280	FHLMC ±		2.79			01/01/2036		7,727,166
	428,323	FHLMC ±		2.88			08/01/2030		450,589
	6,859,686	FHLMC¤±		2.92			09/01/2038		7,183,657
	238,193	FHLMC ±		2.98			06/01/2033		239,092
	18,629	FHLMC ±		3.13			10/01/2030		19,163
	80,629	FHLMC ±		3.14			12/01/2026		81,068
	3,674,329	FHLMC ±		3.18			06/01/2036		3,847,873
	4,197	FHLMC ±		3.70			05/01/2019		4,206
	73,832	FHLMC ±		3.72			10/01/2022		74,224
	3,023,091	FHLMC¤±		4.13			12/01/2035		3,180,377
	3,011,960	FHLMC ±		4.20			10/01/2037		3,084,955
	57,504	FHLMC ±		4.24			06/01/2018		57,909
	146,610	FHLMC ±		4.40			01/01/2027		153,369
	441,484	FHLMC ±		5.05			07/01/2035		466,876
	1,619,490	FHLMC ±		5.74			11/01/2036		1,712,612
	58,668	FHLMC		8.50			04/01/2015		60,788
	150,056	FHLMC		8.50			07/01/2028		178,233
	85,298	FHLMC		8.50			03/01/2030		97,170
	103,397	FHLMC Series 0196 Class A ±		1.11			12/15/2021		103,452
	2,428,294	FHLMC Series 1383¤±		5.83			02/01/2037		2,593,154
	104,304	FHLMC Series 2390 Class FD ±		0.71			12/15/2031		104,302
	133,043	FHLMC Series 2411 Class F ±		0.81			02/15/2032		133,391
	4,348,075	FHLMC Series 2431 Class F ±		0.76			03/15/2032		4,352,217
	211,278	FHLMC Series 2567 Class FH ±		0.66			02/15/2033		211,243

									71,773,860


Federal National Mortgage Association: 18.04%
	109,770	FNMA ±		1.35			04/01/2028		112,516
	297,687	FNMA ±		1.68			10/01/2034		303,574
	7,836	FNMA ±		2.13			04/01/2019		7,841
	1,790,464	FNMA ±		2.26			10/01/2035		1,844,625
	70,641	FNMA ±		2.26			12/01/2031		73,774
	2,105,030	FNMA¤±		2.27			12/01/2035		2,170,526
	117,314	FNMA ±		2.44			12/01/2026		123,200
	2,941,885	FNMA ±		2.46			01/01/2036		3,074,301
	2,762,786	FNMA¤±		2.46			08/01/2036		2,860,048
	3,811,006	FNMA ±		2.46			06/01/2035		3,997,161
	187,721	FNMA ±		2.48			06/01/2029		196,742
	244,721	FNMA ±		2.50			07/01/2038		257,069
	252,403	FNMA ±		2.51			01/01/2026		265,833
	6,110,507	FNMA¤±		2.52			03/01/2035		6,421,016
	157,025	FNMA ±		2.54			06/01/2024		164,922

The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report and Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	2,614,043	FNMA¤±		2.54	%		07/01/2038	$	2,754,269
	365,830	FNMA ±		2.56			02/01/2035		385,497
	5,171,448	FNMA¤±		2.57			04/01/2034		5,416,891
	57,935	FNMA ±		2.60			12/01/2029		61,225
	37,030	FNMA ±		2.61			07/01/2026		39,028
	44,571	FNMA ±		2.62			12/01/2028		44,615
	238,594	FNMA ±		2.62			05/01/2030		250,250
	6,542,471	FNMA¤±		2.62			08/01/2039		6,875,653
	78,030	FNMA ±		2.62			07/01/2033		78,437
	11,412,344	FNMA¤±		2.63			10/01/2034		11,984,504
	339,626	FNMA ±		2.63			07/01/2048		357,026
	248,247	FNMA ±		2.63			08/01/2030		261,704
	99,958	FNMA ±		2.67			06/01/2031		104,537
	166,771	FNMA ±		2.73			03/01/2033		173,072
	9,152	FNMA ±		2.75			12/01/2016		9,197
	571,303	FNMA ±		2.79			03/01/2034		600,717
	2,246,572	FNMA¤±		2.80			04/01/2036		2,341,279
	3,658,662	FNMA¤±		2.83			05/01/2035		3,864,145
	184,998	FNMA ±		2.85			09/01/2027		194,776
	1,701,306	FNMA¤±		2.85			07/01/2036		1,787,324
	136,266	FNMA ±		2.87			04/01/2033		142,774
	2,018,827	FNMA ±		2.93			04/01/2017		2,076,232
	201,883	FNMA ±		2.96			09/01/2032		212,064
	4,316,802	FNMA ±		2.98			10/01/2033		4,538,726
	3,750,588	FNMA¤±		2.99			01/01/2038		3,814,858
	11,675,020	FNMA ±		3.01			05/01/2036		12,222,871
	3,044,485	FNMA ±		3.01			08/01/2035		3,214,874
	724,581	FNMA ±		3.06			12/01/2017		744,800
	103,162	FNMA ±		3.12			07/01/2030		103,297
	998,736	FNMA ±		3.13			05/01/2036		1,022,227
	48,495	FNMA ±		3.25			01/01/2017		49,222
	1,667,641	FNMA ±		3.27			02/01/2017		1,719,909
	107,939	FNMA ±		3.38			10/01/2029		112,229
	2,590,936	FNMA¤±		3.55			07/01/2038		2,711,116
	73,926	FNMA ±		3.62			08/01/2028		76,835
	23,638	FNMA ±		3.65			01/01/2015		23,722
	68,006	FNMA ±		3.82			01/01/2030		72,136
	2,598,209	FNMA ±		4.06			07/01/2035		2,699,266
	6,049,762	FNMA¤±		4.35			02/01/2035		6,240,395
	17,113	FNMA ±		4.51			03/01/2034		17,771
	685,779	FNMA ±		4.61			04/01/2031		721,433
	47,209	FNMA ±		4.62			12/01/2036		49,326
	1,492,940	FNMA ±		4.85			12/01/2034		1,582,582
	3,307,128	FNMA¤±		4.87			04/01/2034		3,443,276
	474,704	FNMA ±		4.95			01/01/2034		487,904
	231,929	FNMA ±		4.95			11/01/2024		244,849
	223,428	FNMA ±		4.97			08/01/2027		225,129
	13,851	FNMA ±		5.11			12/01/2022		14,711
	102,135	FNMA ±		5.13			04/01/2025		102,079
	1,561,073	FNMA¤±		5.34			02/01/2036		1,641,078
	5,661	FNMA ±		6.00			05/01/2021		5,686
	9,803	FNMA		6.00			08/01/2021		10,228
	195,339	FNMA		6.00			04/01/2033		215,378
	2,860,036	FNMA¤±		6.06			09/01/2032		3,000,213
	245,142	FNMA ±		6.11			12/01/2013		248,456
	104,793	FNMA ±		6.14			12/01/2020		110,502
	2,307,623	FNMA¤±		6.28			09/01/2037		2,478,916
	67,473	FNMA		6.50			11/01/2032		76,152
	181,841	FNMA		7.50			07/01/2017		200,883
	14,232	FNMA		7.50			10/01/2028		14,300
	168,760	FNMA		7.50			11/01/2028		196,403
	45,862	FNMA		7.50			02/01/2030		52,465
	106,536	FNMA		7.50			09/01/2030		119,072

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	22,651	FNMA		7.50	%		07/01/2032	$	25,889
	17,033	FNMA		8.00			12/01/2024		17,327
	129,315	FNMA		8.00			06/01/2030		145,744
	23,606	FNMA		12.00			01/01/2016		26,517
	59,867	FNMA Series 1996-46 Class FA ±		0.78			08/25/2021		60,111
	696,062	FNMA Series 2001-25 Class Z		6.00			06/25/2031		764,958
	34,535	FNMA Series 2001-35 Class F ±		0.86			07/25/2031		34,715
	34,769	FNMA Series 2001-57 Class F ±		0.76			06/25/2031		34,802
	283,702	FNMA Series 2001-T10 Class A2		7.50			12/25/2041		328,917
	222,828	FNMA Series 2002-77 Class FH ±		0.66			12/18/2032		222,391
	5,138,301	FNMA Series 2002-95 Class FK ±		0.76			01/25/2033		5,136,096
	73,581	FNMA Series 2002-97 Class FR ±		0.81			01/25/2033		73,580
	1,431,230	FNMA Series 2003-W8 Class 3F2 ±		0.61			05/25/2042		1,425,884
	69,930	FNMA Series G91-16 Class F ±		0.73			06/25/2021		70,099
	134,604	FNMA Series G92-17 Class F ±		1.33			03/25/2022		137,262

									125,017,931


Government National Mortgage Association: 0.11%
	83,528	GNMA		6.50			06/15/2028		94,597
	42,623	GNMA		7.25			07/15/2017		47,444
	63,827	GNMA		7.25			08/15/2017		70,796
	50,498	GNMA		7.25			08/15/2017		55,949
	17,020	GNMA		7.25			08/15/2017		18,945
	64,943	GNMA		7.25			09/15/2017		72,288
	118,825	GNMA		7.25			10/15/2017		131,819
	69,337	GNMA		7.25			10/15/2017		76,853
	44,364	GNMA		7.25			11/15/2017		48,904
	32,448	GNMA		7.25			01/15/2018		36,141
	34,450	GNMA		7.25			01/15/2018		38,580
	35,097	GNMA		7.25			02/15/2018		39,053
	18,144	GNMA		7.25			05/15/2018		19,927
	17,054	GNMA Series 2001-61 Class FA ±		0.76			09/20/2030		17,055

									768,351


Total Agency Securities (Cost $206,455,303)									209,998,799


Collateralized Mortgage Obligations: 1.64%
	4,555,605	American Home Mortgage Assets Series 2006-2 Class 1A1 ±		1.28			09/25/2046		2,664,865
	1,340,000	Banc of America Commercial Mortgage Incorporated Series 2006-03 Class AM ±		5.87			07/10/2044		1,380,936
	1,820,000	Greenwich Capital Commercial Funding Corporation Series 2006-GG7 Class AM ±		5.88			07/10/2038		1,891,997
	3,570,000	Lehman XS Trust Series 2006-18N Class A5A(i)±		0.43			12/25/2036		1,472,993
	1,866,000	Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM		5.37			12/15/2043		1,876,110
	810,000	Morgan Stanley Capital I Trust Series 2006-IQ12 Class AMFX		5.37			12/15/2043		814,388
	1,220,000	Wachovia Bank Commercial Mortgage Trust Series 2006-C23 Class AM(l)		5.47			01/15/2045		1,270,503

Total Collateralized Mortgage Obligations (Cost $11,280,220)									11,371,792

Corporate Bonds and Notes: 54.70%
Consumer Discretionary: 9.85%
Auto Components: 0.83%
	1,895,000	Cooper Tire & Rubber Company		7.63			03/15/2027		1,814,463
	468,000	Goodyear Tire & Rubber Company		8.75			08/15/2020		498,420
	3,010,000	Goodyear Tire & Rubber Company		10.50			05/15/2016		3,416,350
									5,729,233

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Automobiles: 0.42%
$	2,815,000	Ford Motor Credit Company LLC		9.88	%		08/10/2011	$	2,925,323

Diversified Consumer Services: 1.74%
	1,795,000	Carriage Services Incorporated		7.88			01/15/2015		1,799,488
	475,000	Service Corporation International		6.75			04/01/2016		501,125
	1,610,000	Service Corporation International		7.00			06/15/2017		1,696,538
	650,000	Service Corporation International		7.00			05/15/2019		667,875
	3,965,000	Service Corporation International		7.50			04/01/2027		3,865,875
	475,000	Service Corporation International		8.00			11/15/2021		518,938
	2,890,000	Stonemor Operating LP		10.25			12/01/2017		3,012,825

									12,062,664

Hotels, Restaurants & Leisure: 2.17%
	1,500,000	Ameristar Casinos Incorporated		9.25			06/01/2014		1,608,750
	850,000	Blue Acquisition Incorporated††		9.88			10/15/2018		907,375
	1,375,000	Chukchansi Economic Development Authority††±		3.94			11/15/2012		895,469
	175,000	Citycenter Holdings LLC††		7.63			01/15/2016		178,938
	375,000	Citycenter Holdings LLC††¥		10.75			01/15/2017		390,938
	525,000	DineEquity Incorporated††		9.50			10/30/2018		565,031
	700,000	Dunkin Finance Corporation††		9.63			12/01/2018		714,000
	3,375,000	Greektown Superholdings††		13.00			07/01/2015		3,822,188
	900,000	NAI Entertainment Holdings LLC††		8.25			12/15/2017		958,500
	1,250,000	Pinnacle Entertainment Incorporated		7.50			06/15/2015		1,293,750
	485,000	Scientific Games Corporation		9.25			06/15/2019		520,163
	335,000	Shingle Springs Tribal Gaming Authority††		9.38			06/15/2015		227,800
	225,000	Speedway Motorsports Incorporated††%%		6.75			02/01/2019		227,250
	950,000	Speedway Motorsports Incorporated		8.75			06/01/2016		1,035,500
	1,500,000	Yonkers Racing Corporation††		11.38			07/15/2016		1,657,500

									15,003,152

Household Durables: 0.01%
	68,000	Sealy Corporation††		10.88			04/15/2016		77,265

Internet & Catalog Retail: 0.06%
	390,000	QVC Incorporated††		7.50			10/01/2019		415,350

Media: 4.18%
	1,310,000	Cablevision Systems Corporation		8.63			09/15/2017		1,463,925
	7,535,929	CCH II LLC		13.50			11/30/2016		9,118,474
	904,000	Charter Communications Incorporated Step Bond††ºº		8.00			04/30/2012		952,590
	5,140,000	Charter Communications Incorporated Step Bond††ºº		10.88			09/15/2014		5,782,500
	250,000	Cinemark USA Incorporated		8.63			06/15/2019		270,625
	400,000	CSC Holdings LLC		8.50			04/15/2014		447,000
	480,000	DISH DBS Corporation		7.88			09/01/2019		508,200
	1,000,000	EchoStar DBS Corporation		6.63			10/01/2014		1,047,500
	350,000	EchoStar DBS Corporation		7.75			05/31/2015		376,688
	675,000	Gray Television Incorporated		10.50			06/29/2015		693,563
	300,000	Interactive Data Corporation††		10.25			08/01/2018		332,250
	375,000	Lamar Media Corporation Series C		9.75			04/01/2014		434,063
	775,000	Lin Television Corporation		8.38			04/15/2018		833,125
	1,000,000	Nielsen Finance LLC††		7.75			10/15/2018		1,072,500
	601,000	Nielsen Finance LLC		11.50			05/01/2016		700,916
	405,000	Nielsen Finance LLC Senior Discount Note Step Bondºº		12.50			08/01/2016		425,756
	2,475,000	Regal Cinemas Corporation		8.63			07/15/2019		2,635,875
	1,257,000	Salem Communications Corporation		9.63			12/15/2016		1,363,845
	425,000	XM Satellite Radio Holdings Incorporated††		13.00			08/01/2013		505,750
	1,526,000	Young Broadcasting Incorporated^^		8.75			01/15/2014		15

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Media (continued)
$	940,000	Young Broadcasting Incorporated^^(i)		10.00	%		03/01/2011	$	9
									28,965,169

Multiline Retail: 0.09%
	585,000	Saks Incorporated		9.88			10/01/2011		610,594

Specialty Retail: 0.05%
	375,000	Rent-A-Center Incorporated††		6.63			11/15/2020		369,375

Textiles, Apparel & Luxury Goods: 0.30%
	1,865,000	Oxford Industries Incorporated		11.38			07/15/2015		2,107,450

Consumer Staples: 1.39%

Beverages: 0.25%
	1,475,000	Anheuser-Busch InBev††		6.88			11/15/2019		1,749,092

Food Products: 1.14%
	125,000	Darling International Incorporated††		8.50			12/15/2018		135,000
	1,452,000	Dole Food Company Incorporated		13.88			03/15/2014		1,780,515
	3,745,000	JBS USA Finance Incorporated		11.63			05/01/2014		4,362,925
	1,370,000	Smithfield Foods Incorporated		10.00			07/15/2014		1,611,463

									7,889,903

Energy: 7.41%

Energy Equipment & Services: 1.59%
	985,000	Bristow Group Incorporated		7.50			09/15/2017		1,039,175
	630,000	Cleaver-Brooks Incorporated††		12.25			05/01/2016		675,675
	1,625,000	GulfMark Offshore Incorporated		7.75			07/15/2014		1,653,438
	2,345,000	Hornbeck Offshore Services Incorporated Series B		6.13			12/01/2014		2,321,550
	2,230,000	Hornbeck Offshore Services Incorporated Series B		8.00			09/01/2017		2,288,538
	460,000	Parker Drilling Company		9.13			04/01/2018		485,300
	2,475,000	PHI Incorporated		8.63			10/15/2018		2,561,625

									11,025,301

Oil, Gas & Consumable Fuels: 5.82%
	2,250,000	Chesapeake Energy Corporation		9.50			02/15/2015		2,632,500
	125,000	Cloud Peak Energy Resources Incorporated		8.25			12/15/2017		136,094
	225,000	Cloud Peak Energy Resources Incorporated		8.50			12/15/2019		250,875
	932,000	Coffeyville Resources LLC††		9.00			04/01/2015		1,015,880
	1,350,000	Coffeyville Resources LLC††		10.88			04/01/2017		1,501,875
	825,000	Consol Energy Incorporated††		8.25			04/01/2020		901,313
	425,000	Denbury Resources Incorporated		8.25			02/15/2020		468,031
	445,000	El Paso Corporation††		6.50			09/15/2020		451,947
	175,000	El Paso Corporation		6.88			06/15/2014		190,287
	175,000	El Paso Corporation		7.00			06/15/2017		188,633
	1,075,000	El Paso Corporation		7.25			06/01/2018		1,174,902
	800,000	El Paso Corporation		7.42			02/15/2037		755,726
	175,000	El Paso Corporation		7.75			01/15/2032		177,259
	1,850,000	El Paso Corporation		7.80			08/01/2031		1,883,283
	3,100,000	Energy Transfer Equity LP		7.50			10/15/2020		3,313,125
	600,000	Ferrellgas Partners LP††		6.50			05/01/2021		582,000
	975,000	Ferrellgas Partners LP		9.13			10/01/2017		1,074,938
	770,000	Forest Oil Corporation		7.25			06/15/2019		798,875
	535,000	Forest Oil Corporation		8.50			02/15/2014		592,513
	1,895,000	Holly Corporation		9.88			06/15/2017		2,089,238
	575,000	Inergy Holdings LP††%%		6.88			08/01/2021		580,031

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Oil, Gas & Consumable Fuels (continued)
$	3,435,000	Peabody Energy Corporation		7.88	%		11/01/2026	$	3,864,375
	790,000	Petrohawk Energy Corporation		7.88			06/01/2015		837,400
	495,000	Petrohawk Energy Corporation		10.50			08/01/2014		569,250
	1,220,000	Pioneer Natural Resources Company		7.50			01/15/2020		1,351,489
	2,885,000	Plains Exploration & Production Company		8.63			10/15/2019		3,209,563
	250,000	Regency Energy Partners		6.88			12/01/2018		256,875
	2,265,000	Sabine Pass LNG LP		7.25			11/30/2013		2,248,013
	2,625,000	Sabine Pass LNG LP		7.50			11/30/2016		2,572,500
	1,790,000	SandRidge Energy Incorporated		8.75			01/15/2020		1,906,350
	635,000	Stallion Oilfield Holdings Incorporated††		10.50			02/15/2015		688,975
	990,000	Tesoro Corporation(i)		7.50			07/17/2012		998,316
	945,000	Tesoro Corporation		9.75			06/01/2019		1,063,125

									40,325,556

Financials: 8.77%

Capital Markets: 1.27%
	800,000	ETRADE Financial Corporation*		7.38			09/15/2013		797,000
	4,291,000	ETRADE Financial Corporation¥*		12.50			11/30/2017		5,100,926
	2,200,000	Nuveen Investments Incorporated		5.50			09/15/2015		1,914,000
	275,000	Nuveen Investments Incorporated††		10.50			11/15/2015		283,250
	675,000	Nuveen Investments Incorporated		10.50			11/15/2015		695,250

									8,790,426

Commercial Banks: 2.35%
	1,925,000	CapitalSource Incorporated††		12.75			07/15/2014		2,322,031
	7,935,000	CIT Group Incorporated		7.00			05/01/2013		8,103,619
	1,592,738	CIT Group Incorporated		7.00			05/01/2014		1,622,602
	372,738	CIT Group Incorporated		7.00			05/01/2015		377,863
	1,554,562	CIT Group Incorporated		7.00			05/01/2016		1,570,108
	350,000	FCE Bank plc		9.38			01/17/2014		537,330
	370,000	HSBC Finance Corporation		7.00			03/27/2012		619,494
	1,100,000	Lloyds TSB Bank plc		6.38			01/21/2021		1,111,678

									16,264,725

Consumer Finance: 1.37%
	1,600,000	American General Finance Corporation		5.40			12/01/2015		1,368,000
	1,075,000	American General Finance Corporation		5.75			09/15/2016		903,000
	150,000	American General Finance Corporation		6.50			09/15/2017		126,750
	1,575,000	American General Finance Corporation		6.90			12/15/2017		1,370,250
	1,265,000	International Lease Finance Corporation		4.75			01/13/2012		1,290,300
	1,800,000	International Lease Finance Corporation		5.30			05/01/2012		1,838,250
	705,000	International Lease Finance Corporation		5.75			06/15/2011		710,288
	460,000	International Lease Finance Corporation		6.38			03/25/2013		479,550
	900,000	International Lease Finance Corporation††		8.63			09/15/2015		1,003,500
	350,000	Sable International Finance Limited		7.75			02/15/2017		373,625

									9,463,513

Diversified Financial Services: 1.96%
	2,055,000	Ally Financial Incorporated		8.30			02/12/2015		2,322,150
	2,000,000	General Electric Capital Corporation		7.63			12/10/2014		1,656,322
	1,298,000	GMAC LLC		6.75			12/01/2014		1,395,350
	59,000	GMAC LLC		6.88			09/15/2011		60,475
	1,244,000	GMAC LLC		6.88			08/28/2012		1,313,975
	3,620,000	GMAC LLC		7.50			12/31/2013		3,918,650

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Diversified Financial Services (continued)
$	2,655,000	Leucadia National Corporation		8.13	%		09/15/2015	$	2,920,500

									13,587,422

Insurance: 0.46%
	2,925,000	Emigrant Bancorp Incorporated††(i)		6.25			06/15/2014		2,441,287
	725,000	Hub International Holdings Incorporated††		10.25			06/15/2015		748,563

									3,189,850

Real Estate Investment Trusts (REITs): 1.36%
	5,560,000	Dupont Fabros Technology Incorporated		8.50			12/15/2017		6,018,700
	235,000	Host Hotels & Resorts LP		9.00			05/15/2017		263,200
	1,775,000	Omega Healthcare Investors Incorporated††		6.75			10/15/2022		1,752,813
	500,000	Omega Healthcare Investors Incorporated		7.00			01/15/2016		513,125
	859,000	Ventas Incorporated		9.00			05/01/2012		904,849

									9,452,687

Health Care: 2.65%

Health Care Equipment & Supplies: 0.52%
	540,000	Biomet Incorporated¥		10.38			10/15/2017		604,800
	2,200,000	Biomet Incorporated		11.63			10/15/2017		2,486,000
	475,000	Cooper Companies Incorporated		7.13			02/15/2015		491,625

									3,582,425

Health Care Providers & Services: 1.86%
	1,090,000	Apria Healthcare Group Incorporated		11.25			11/01/2014		1,203,088
	950,000	Aviv Healthcare Properties LP††%%		7.75			02/15/2019		976,125
	700,000	Community Health Systems Incorporated		8.88			07/15/2015		739,375
	400,000	Frensenius Medical Care US Finance Company††%%		5.75			02/15/2021		395,000
	820,000	HCA Incorporated		7.88			02/01/2011		820,000
	375,000	HCA Incorporated		8.50			04/15/2019		418,125
	250,000	HCA Incorporated		9.13			11/15/2014		262,500
	2,945,000	HCA Incorporated		9.25			11/15/2016		3,169,556
	2,181,000	HCA Incorporated¥		9.63			11/15/2016		2,352,754
	75,000	Health Management plc		6.13			04/15/2016		76,125
	400,000	Healthsouth Corporation		7.25			10/01/2018		409,500
	400,000	Healthsouth Corporation		7.75			09/15/2022		416,000
	525,000	Omnicare Incorporated		6.88			12/15/2015		543,375
	1,050,000	Sabra Healthcare Corporation††		8.13			11/01/2018		1,089,375

									12,870,898

Pharmaceuticals: 0.27%
	300,000	Mylan Incorporated††		6.00			11/15/2018		306,000
	375,000	Mylan Incorporated††		7.63			07/15/2017		408,750
	150,000	Mylan Incorporated††		7.88			07/15/2020		165,938
	900,000	Pfizer Incorporated		5.35			03/15/2015		1,012,484

									1,893,172

Industrials: 4.35%

Aerospace & Defense: 1.57%
	1,980,000	Alliant Techsystems Incorporated		6.75			04/01/2016		2,039,400
	340,000	Digitalglobe Incorporated		10.50			05/01/2014		388,450
	475,000	GenCorp Incorporated		9.50			08/15/2013		487,469
	485,000	Geoeye Incorporated		9.63			10/01/2015		548,050

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Aerospace & Defense (continued)
$	480,000	Hexcel Corporation		6.75	%		02/01/2015	$	488,400
	1,140,000	Kratos Defense & Security Solutions Incorporated		10.00			06/01/2017		1,272,525
	2,115,000	L-3 Communications Holdings Incorporated		5.88			01/15/2015		2,157,300
	2,784,000	L-3 Communications Holdings Incorporated		6.38			10/15/2015		2,871,000
	635,000	Wyle Services Corporation††		10.50			04/01/2018		630,238
									10,882,832


Commercial Services & Supplies: 1.64%
	275,000	Brickman Group Holdings††		9.13			11/01/2018		289,094
	125,000	Casella Waste Systems Incorporated††%%		7.75			02/15/2019		127,813
	1,945,000	Casella Waste Systems Incorporated		11.00			07/15/2014		2,183,263
	815,000	Corrections Corporation of America		6.25			03/15/2013		817,038
	1,270,000	Corrections Corporation of America		7.75			06/01/2017		1,387,475
	1,200,000	Geo Group Incorporated		7.75			10/15/2017		1,260,000
	125,000	Interface Incorporated††		7.63			12/01/2018		130,938
	400,000	Iron Mountain Incorporated		6.75			10/15/2018		542,184
	1,385,000	Iron Mountain Incorporated		8.38			08/15/2021		1,506,188
	1,150,000	Kar Holdings Incorporated ±		4.29			05/01/2014		1,109,750
	200,000	Kar Holdings Incorporated		8.75			05/01/2014		208,000
	225,000	Kar Holdings Incorporated		10.00			05/01/2015		238,500
	1,800,000	NCO Group Incorporated		11.88			11/15/2014		1,593,000
									11,393,243


Machinery: 0.76%
	450,000	Columbus Mckinnon Corporation††		7.88			02/01/2019		460,125
	500,000	Commercial Vehicle Group Incorporated		8.00			07/01/2013		490,000
	2,152,365	Commercial Vehicle Group Incorporated¥		13.00			02/15/2013		2,281,507
	1,315,000	CPM Holdings Incorporated††		10.63			09/01/2014		1,420,200
	225,000	Thermadyne Holdings Corporation††		9.00			12/15/2017		237,375
	375,000	Titan International Incorporated††		7.88			10/01/2017		399,375
									5,288,582


Road & Rail: 0.30%
	55,000	Kansas City Southern		8.00			06/01/2015		59,400
	349,000	Kansas City Southern		13.00			12/15/2013		417,055
	1,425,000	RailAmerica Incorporated		9.25			07/01/2017		1,572,844
									2,049,299


Transportation Infrastructure: 0.08%
	520,000	United Maritime LLC		11.75			06/15/2015		520,000

Information Technology: 4.16%

Communications Equipment: 0.32%
	1,175,000	Allbritton Communication Company		8.00			05/15/2018		1,220,531
	1,285,000	Lucent Technologies Incorporated		6.45			03/15/2029		1,021,575
									2,242,106


Electronic Equipment & Instruments: 1.97%
	2,490,000	GCI Incorporated		7.25			02/15/2014		2,514,900
	625,000	GCI Incorporated		8.63			11/15/2019		679,688
	1,240,000	Intcomex Incorporated††		13.25			12/15/2014		1,302,000
	5,275,000	Jabil Circuit Incorporated		8.25			03/15/2018		6,039,875
	1,485,000	Kemet Corporation		10.50			05/01/2018		1,633,500

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Electronic Equipment & Instruments (continued)
$	1,285,000	Viasystem Group Incorporated††		12.00	%		01/15/2015	$	1,460,081

									13,630,044


Internet Software & Services: 0.48%
	1,010,000	Equinix Incorporated		8.13			03/01/2018		1,090,800
	1,805,000	Terremark Worldwide Incorporated		12.00			06/15/2017		2,251,738

									3,342,538


IT Services: 1.24%
	1,550,000	First Data Corporation		11.25			03/31/2016		1,433,750
	1,230,000	iPayment Incorporated		9.75			05/15/2014		1,196,175
	525,000	Sungard Data Systems Incorporated††		7.38			11/15/2018		535,500
	250,000	Sungard Data Systems Incorporated††		7.63			11/15/2020		258,125
	3,130,000	SunGard Data Systems Incorporated		10.25			08/15/2015		3,298,238
	460,000	Unisys Corporation		12.50			01/15/2016		511,750
	650,000	Unisys Corporation††		12.75			10/15/2014		780,000
	510,000	Unisys Corporation††		14.25			09/15/2015		615,825

									8,629,363


Semiconductors & Semiconductor Equipment: 0.15%
	975,000	Advanced Micro Devices Incorporated		5.75			08/15/2012		1,010,344


Materials: 4.37%

Chemicals: 2.31%
	250,000	Chemtura Corporation††		7.88			09/01/2018		266,875
	1,260,000	Huntsman International LLC		5.50			06/30/2016		1,234,800
	2,520,000	LBI Escrow Corporation††		8.00			11/01/2017		2,812,950
	8,981,938	Lyondell Chemical Company		11.00			05/01/2018		10,239,409
	400,000	Rockwood Specialties Group Incorporated		7.63			11/15/2014		557,244
	670,000	Solutia Incorporated		7.88			03/15/2020		726,950
	125,000	Vertellus Specialties Incorporated††		9.38			10/01/2015		134,531

									15,972,759


Construction Materials: 0.63%
	620,000	CPG International Incorporated ±		7.21			07/01/2012		620,000
	1,900,000	CPG International Incorporated		10.50			07/01/2013		1,942,750
	1,635,000	Headwaters Incorporated		11.38			11/01/2014		1,823,025

									4,385,775


Containers & Packaging: 0.67%
	2,760,000	Exopack Holding Corporation		11.25			02/01/2014		2,835,900
	95,000	Graham Packaging Company		8.25			01/01/2017		99,750
	1,450,000	Graham Packaging Company		9.88			10/15/2014		1,500,750
	175,000	Owens Brockway Glass Container Incorporated		7.38			05/15/2016		190,313

									4,626,713


Metals & Mining: 0.41%
	2,485,000	Freeport-McMoRan Copper & Gold Incorporated		8.38			04/01/2017		2,770,775
	3,170,000	Indalex Holdings Corporation^^		11.50			02/01/2014		51,513

									2,822,288


Paper & Forest Products: 0.35%
	545,000	Clearwater Paper Corporation		10.63			06/15/2016		621,981

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Paper & Forest Products (continued)
$	500,000	Georgia Pacific Corporation††		7.00	%		01/15/2015	$	517,500
	1,080,000	Georgia Pacific Corporation		8.88			05/15/2031		1,314,900

									2,454,381

Telecommunication Services: 6.83%

Diversified Telecommunication Services: 4.40%
	4,155,000	Citizens Communications Company		7.88			01/15/2027		4,113,450
	1,450,000	Clearwire Communications Finance Corporation††		12.00			12/01/2015		1,580,500
	940,000	Clearwire Communications Finance Corporation††		12.00			12/01/2015		1,024,600
	845,000	Frontier Communications Corporation		8.13			10/01/2018		951,681
	200,000	Frontier Communications Corporation		8.25			05/01/2014		223,500
	1,965,000	Frontier Communications Corporation		8.25			04/15/2017		2,200,800
	525,000	Frontier Communications Corporation		8.50			04/15/2020		591,938
	2,010,000	Level 3 Financing Incorporated		10.00			02/01/2018		2,010,000
	795,000	Qwest Corporation		7.13			11/15/2043		769,163
	1,040,000	Qwest Corporation		7.25			09/15/2025		1,112,800
	1,370,000	Qwest Corporation		7.50			06/15/2023		1,373,425
	230,000	Qwest Corporation		7.63			08/03/2021		232,300
	2,875,000	Qwest Corporation		8.88			03/15/2012		3,097,813
	700,000	SBA Telecommunications Incorporated		8.00			08/15/2016		764,750
	5,985,000	Sprint Capital Corporation		6.88			11/15/2028		5,356,575
	2,420,000	Sprint Capital Corporation		8.38			03/15/2012		2,571,250
	2,330,000	Windstream Corporation		7.88			11/01/2017		2,496,013

									30,470,558


Wireless Telecommunication Services: 2.43%
	325,000	CCO Holdings LLC††		7.75			05/01/2017		357,500
	500,000	CCO Holdings LLC		8.13			04/30/2020		532,500
	1,655,000	Cricket Communications Incorporated		7.75			05/15/2016		1,741,888
	75,000	Crown Castle International Corporation		7.13			11/01/2019		79,688
	325,000	Crown Castle International Corporation		9.00			01/15/2015		362,375
	1,357,019	iPCS Incorporated¥		3.54			05/01/2014		1,316,308
	1,875,000	MetroPCS Communications Incorporated		6.63			11/15/2020		1,809,375
	775,000	MetroPCS Communications Incorporated		7.88			09/01/2018		809,875
	1,055,000	Sprint Nextel Corporation		6.90			05/01/2019		1,057,638
	4,085,000	Sprint Nextel Corporation Series D		7.38			08/01/2015		4,115,638
	2,335,000	Sprint Nextel Corporation Series F		5.95			03/15/2014		2,337,919
	1,000,000	Syniverse Holdings Incorporated††		9.13			01/15/2019		1,065,000
	1,135,000	Telesat Canada Incorporated		11.00			11/01/2015		1,274,038

									16,859,742


Utilities: 4.92%

Electric Utilities: 1.62%
	6,545,000	Aquila Incorporated Step Bondºº		11.88			07/01/2012		7,393,173
	904,463	Energy Future Holdings Corporation¥		12.00			11/01/2017		601,468
	1,312,551	Homer City Funding LLC		8.73			10/01/2026		1,227,235
	1,835,000	Otter Tail Corporation		9.00			12/15/2016		1,981,800
	15,000	PNM Resources Incorporated		9.25			05/15/2015		16,800

									11,220,476


Gas Utilities: 0.15%
	475,000	Amerigas Partners LP		6.50			05/20/2021		483,313
	275,000	Amerigas Partners LP		7.13			05/20/2016		286,688
	275,000	Suburban Propane Partners LP		7.38			03/15/2020		291,844

									1,061,845

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Independent Power Producers & Energy Traders: 3.15%
$	1,145,000	AES Corporation		8.88	%		02/15/2011	$	1,145,000
	3,975,000	Calpine Construction Finance Corporation††		7.25			10/15/2017		4,064,438
	1,375,000	Calpine Construction Finance Corporation††		8.00			06/01/2016		1,474,688
	2,165,000	Dynegy Holdings Incorporated		7.63			10/15/2026		1,401,838
	3,614,632	Mirant Mid-Atlantic LLC Series C		10.06			12/30/2028		4,084,534
	2,125,000	NRG Energy Incorporated		7.38			02/01/2016		2,199,375
	3,400,000	NRG Energy Incorporated		7.38			01/15/2017		3,536,000
	1,615,000	NRG Energy Incorporated		8.50			06/15/2019		1,683,638
	450,000	Reliant Energy Incorporated		7.63			06/15/2014		472,500
	1,226,246	Reliant Energy Incorporated		9.24			07/02/2017		1,312,083
	410,000	Reliant Energy Incorporated		9.68			07/02/2026		442,800

									21,816,894

Total Corporate Bonds and Notes (Cost $355,301,540)									379,030,327


Foreign Corporate Bonds@: 10.39%

Consumer Discretionary: 0.36%

Hotels, Restaurants & Leisure: 0.05%
	250,000	R&R Ice Cream plc(i)†† (EUR)		8.38			11/15/2017		357,691


Media: 0.19%
	470,000	UPC Holding BV (EUR)		9.63			12/01/2019		714,286
	400,000	Ziggo Bond Company BV(i)†† (EUR)		8.00			05/15/2018		579,151

									1,293,437


Multiline Retail: 0.12%
	500,000	Marks & Spencer Group plc (GBP)		6.38			11/07/2011		821,443


Consumer Staples: 0.73%

Food & Staples Retailing: 0.25%
	300,000	Bakkavor Finance plc%%†† (GBP)		8.25			02/15/2018		480,555
	750,000	Tesco plc (GBP)		5.50			12/13/2019		1,272,061

									1,752,616


Tobacco: 0.48%
	1,100,000	British American Tobacco Finance plc (EUR)		5.38			06/29/2017		1,630,313
	1,025,000	Imperial Tobacco Group plc (EUR)		8.38			02/17/2016		1,688,585

									3,318,898


Financials: 6.90%

Capital Markets: 0.13%
	560,000	Morgan Stanley (GBP)		5.38			11/14/2013		936,000


Commercial Banks: 5.00%
	1,200,000	Bank Nederlandse Gemeenten (EUR)		3.88			11/04/2019		1,673,891
	2,450,000	Eurofima (AUD)		6.25			12/28/2018		2,429,918
	1,900,000	European Investment Bank (EUR)		3.13			04/15/2014		2,671,194
	2,330,000	European Investment Bank (EUR)		3.13			03/03/2017		3,197,046
	2,300,000	European Investment Bank (EUR)		4.25			10/15/2014		3,357,163
	8,530,000	European Investment Bank (AUD)		6.13			01/23/2017		8,461,443
	1,800,000	Instituto de Credito Oficial (EUR)		4.38			05/23/2012		2,487,057
	950,000	International Bank for Reconstruction & Development (AUD)		5.75			10/01/2020		915,577
	910,000	KfW Bankengruppe (EUR)		3.88			01/21/2019		1,289,528

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Commercial Banks (continued)
	1,225,000	KfW Bankengruppe (AUD)		6.25	%		12/04/2019	$	1,209,075
	4,819,000	KfW Bankengruppe (NZD)		6.38			02/17/2015		3,913,351
	2,150,000	Rabobank Nederland (EUR)		4.25			01/16/2017		3,029,007
									34,634,250


Thrifts & Mortgage Finance: 1.77%
	700,000	Nationwide Building Society ± (EUR)		3.75			01/20/2015		927,072
	35,800,862	Nykredit (DKK)		4.00			10/01/2041		6,150,686
	30,262,522	Realkredit Danmark (DKK)		4.00			10/01/2041		5,199,184

									12,276,942


Health Care: 0.13%

Pharmaceuticals: 0.13%
	600,000	Pfizer Incorporated (EUR)		4.75			06/03/2016		877,417


Industrials: 0.49%

Aerospace & Defense: 0.06%
	280,000	Bombardier Incorporated (EUR)		7.25			11/15/2016		407,322


Airlines: 0.11%
	550,000	Inaer Aviation Finance Limited†† (EUR)		9.50			08/01/2017		745,502


Building Products: 0.07%
	350,000	HeidelbergCement AG (EUR)		8.00			01/31/2017		527,123


Commercial Services & Supplies: 0.08%
	350,000	Exova†† (GBP)		10.50			10/15/2018		585,895


Machinery: 0.05%
	250,000	Savcio Holdings Limited (EUR)		8.00			02/15/2013		337,153


Professional Services: 0.08%
	350,000	ISS Financing plc (EUR)		11.00			06/15/2014		527,722


Trading Companies & Distributors: 0.04%
	200,000	Rexel SA (EUR)		8.25			12/15/2016		302,582


Materials: 0.44%

Chemicals: 0.09%
	400,000	Kerling plc (EUR)		10.63			02/01/2017		606,534


Containers & Packaging: 0.17%
	400,000	Ardagh Glass Finance (EUR)		8.75			02/01/2020		568,197
	400,000	Owens-Illinois European Group BV (EUR)		6.88			03/31/2017		569,567

									1,137,764


Metals & Mining: 0.10%
	500,000	New World Resources NV (EUR)		7.38			05/15/2015		703,401


Paper & Forest Products: 0.08%
	400,000	Smurfit Kappa Funding plc (EUR)		7.25			11/15/2017		576,412

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Telecommunication Services: 0.78%

Diversified Telecommunication Services: 0.78%
	1,250,000	Deutsche Telekom International Finance (EUR)		4.25	%		07/13/2022	$	1,632,955
	1,275,000	France Telecom (EUR)		4.75			02/21/2017		1,845,519
	725,000	Telstra Corporation Limited (EUR)		4.75			03/21/2017		1,041,462
	300,000	Virgin Media Finance plc (GBP)		8.88			10/15/2019		545,430
	200,000	Wind Acquisition Finance SpA (EUR)		11.75			07/15/2017		312,194
									5,377,560


Utilities: 0.56%

Independent Power Producers & Energy Traders: 0.08%
	335,000	Infinis plc (GBP)		9.13			12/15/2014		570,159


Multi-Utilities: 0.48%
	1,225,000	National Grid plc (EUR)		4.38			03/10/2020		1,667,882
	1,200,000	Veolia Environnement SA (EUR)		4.00			02/12/2016		1,678,848

									3,346,730


Total Foreign Corporate Bonds (Cost $68,506,635)									72,020,553

Foreign Government Bonds@: 19.36%
	2,750,000	Australia Series 124 (AUD)		5.75			05/15/2021		2,788,142
	6,650,000	Australia Series 25CI (AUD)		3.12			09/20/2025		7,101,886
	8,500,000	Brazil (BRL)		12.50			01/05/2022		5,927,742
	1,125,000	Caisse d’Amortissement de la Dette Sociale (EUR)		3.38			04/25/2021		1,493,645
	700,000	Caisse d’Amortissement de la Dette Sociale (EUR)		4.25			04/25/2020		1,004,139
	6,400,000	Canada (CAD)		2.50			09/01/2013		6,496,254
	6,900,000	Canada (CAD)		3.75			06/01/2019		7,170,942
	8,150,000	Canada Series 23 (CAD)		4.10			12/15/2018		8,557,927
	98,350,000	Czech Republic (CZK)		5.00			04/11/2019		5,973,757
	2,120,000	France (EUR)		2.00			07/12/2015		2,838,161
	6,850,000	France (EUR)		2.50			10/25/2020		8,593,403
	1,750,000	France (EUR)		3.50			04/25/2020		2,403,608
	5,100,000	Germany (EUR)		3.50			04/12/2013		7,289,555
	5,875,000	Germany (EUR)		4.25			07/04/2017		8,763,594
	2,850,000,000	Korea (KRW)		5.25			09/10/2015		2,633,631
	4,635,000,000	Korea (KRW)		5.25			03/10/2027		4,316,982
	20,250,000	Malaysia (MYR)		3.84			08/12/2015		6,709,765
	77,900,000	Mexico (MXN)		8.50			11/18/2038		6,660,209
	1,500,000	Netherlands (EUR)		3.50			07/15/2020		2,083,915
	6,705,000	New Zealand (NZD)		6.00			12/15/2017		5,439,430
	28,730,000	Norway (NOK)		4.25			05/19/2017		5,194,591
	16,950,000	Poland (PLN)		5.50			04/25/2015		5,860,757
	1,425,000	Slovenia (EUR)		4.63			09/09/2024		1,969,086
	67,650,000	Sweden (SEK)		4.50			08/12/2015		11,141,458
	3,325,000	United Kingdom (GBP)		4.75			03/07/2020		5,773,496

Total Foreign Government Bonds (Cost $130,330,977)									134,186,075

Yankee Corporate Bonds and Notes: 7.03%

Consumer Discretionary: 0.05%

Media: 0.05%
$	325,000	Videotron Limited		9.13			04/15/2018		363,594

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Energy: 2.48%

Oil, Gas & Consumable Fuels: 2.48%
$	2,550,000	Connacher Oil & Gas Limited††		10.25	%		12/15/2015	$	2,683,875
	620,000	Connacher Oil & Gas Limited††		11.75			07/15/2014		673,475
	1,380,000	General Maritime Corp		12.00			11/15/2017		1,307,550
	475,000	Griffin Coal Mining Company Limited^^		9.50			12/01/2016		397,813
	5,810,000	Griffin Coal Mining Company Limited††^^		9.50			12/31/2049		4,865,875
	2,420,000	OPTI Canada Incorporated		7.88			12/15/2014		1,445,950
	1,650,000	Petroplus Finance Limited		5.75			01/20/2020		1,703,585
	4,020,000	Ship Finance International Limited		8.50			12/15/2013		4,080,300
									17,158,423


Financials: 0.85%

Commercial Banks: 0.72%
	2,000,000	KfW Bankengruppe		4.88			06/17/2019		2,204,106
	1,800,000	Landwirtsch Rentenbank		2.38			09/13/2017		1,725,007
	1,100,000	Royal Bank of Scotland Group plc		6.13			01/11/2021		1,093,088
									5,022,201


Diversified Financial Services: 0.13%
	900,000	IPIC GMTN Limited††		5.00			11/15/2020		877,512
	635,000	Preferred Term Securities XII Limited ±^^(i)		0.00			12/24/2033		191
									877,703

Information Technology: 0.24%

Computers & Peripherals: 0.24%
	650,000	Seagate Technology HDD Holdings		6.80			10/01/2016		669,500
	975,000	Seagate Technology HDD Holdings††		7.75			12/15/2018		999,375
									1,668,875

									1,668,875


Materials: 1.70%

Metals & Mining: 0.70%
	1,030,000	Novelis Incorporated		7.25			02/15/2015		1,050,600
	500,000	Novelis Incorporated††		8.38			12/15/2017		538,750
	525,000	Novelis Incorporated††		8.75			12/15/2020		570,281
	2,050,000	Teck Resources Limited		10.75			05/15/2019		2,665,000
									4,824,631


Paper & Forest Products: 1.00%
	1,170,000	PE Paper Escrow GmbH††		12.00			08/01/2014		1,363,251
	2,085,000	Sappi Limited††		6.75			06/15/2012		2,142,400
	3,860,000	Sappi Limited††		7.50			06/15/2032		3,440,167
									6,945,818


Telecommunication Services: 1.55%

Diversified Telecommunication Services: 1.33%
	570,000	Global Crossing Limited		12.00			09/15/2015		655,500
	2,495,000	Intelsat Limited		8.50			01/15/2013		2,507,475
	850,000	Intelsat Limited††		8.50			11/01/2019		930,750

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Diversified Telecommunication Services (continued)
$	234,000	Intelsat Limited		8.88	%		01/15/2015	$	241,605
	275,000	Intelsat Limited		11.25			06/15/2016		295,625
	300,000	Qtel International Finance Limited		4.75			02/16/2021		286,604
	100,000	Virgin Media Finance plc		9.13			08/15/2016		106,500
	3,660,000	Wind Acquisition Finance SpA††		11.75			07/15/2017		4,172,400

									9,196,459
Wireless Telecommunication Services: 0.22%
	1,335,000	Digicel Group Limited††		12.00			04/01/2014		1,556,944

Utilities: 0.16%

Electric Utilities: 0.16%
	1,000,000	E.ON AG		5.80			04/30/2018		1,124,900

Total Yankee Corporate Bonds and Notes (Cost $44,145,165)									48,739,548

Convertible Debentures: 0.16%

Information Technology: 0.16%

Communications Equipment: 0.16%
	1,145,000	Lucent Technologies Incorporated		2.88			06/15/2025		1,089,181

Total Convertible		Debentures (Cost $765,113)							1,089,181


Principal			Interest Rate		Maturity Date
Term Loans: 5.51%
	475,000	Advantage Sales & Marketing LLC		9.25		06/18/2018	483,018
	1,025,000	Barrington Broadcasting Company		4.53		08/12/2013	986,562
	1,202,850	Blackstone Group LP		7.75		11/02/2014	1,238,936
	3,217,750	Capital Automotive REIT		5.00		12/14/2012	3,298,193
	2,987,176	Coinmach Corporation<		3.28		11/20/2014	2,791,157
	6,150,398	Fairpoint Communications Incorporated		2.00		03/31/2015	4,479,519
	461,137	Federal Mogul Corporation		2.20		12/29/2014	448,045
	419,474	Federal Mogul Corporation		2.20		12/28/2015	407,566
	1,075,000	First Data Corporation		3.01		09/24/2014	1,014,757
	2,125,000	First Data Corporation		3.01		09/24/2014	2,007,785
	550,000	First Data Corporation		3.01		09/24/2014	519,552
	981,475	Gray Television Incorporated		3.77		12/31/2014	970,963
	700,000	Level 3 Financing Incorporated		2.55		03/13/2014	684,250
	1,668,037	Local TV Finance LLC		2.31		05/07/2013	1,613,826
	1,087,499	Merisant Company(i)		7.50		01/08/2014	1,033,809
	1,221,391	NCO Group Incorporated		7.50		11/15/2013	1,200,786
	2,755,000	Newsday LLC		10.50		08/01/2013	2,925,479
	236,839	Panolam Industries International Incorporated		8.25		12/31/2013	213,747
	1,215,000	Sugarhouse HSP Gaming LP		11.25		09/23/2014	1,233,735

PORTFOLIO OF INVESTMENTS — January 31, 2011 (UNAUDITED)

MULTI-SECTOR INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Term Loans (continued)
$	12,903,558	TXU Energy Company LLC<		3.76	%		10/10/2014	$	10,616,402

Total Term Loans (Cost $36,796,540)									38,168,087


Shares

Investment Companies: 0.23%

Closed-End Funds: 0.23%
	48,730	Dreyfus High Yield Strategies Fund Incorporated							221,234
	46,191	Eaton Vance Limited Duration Income Trust							736,746
	15,869	LMP Corporate Loan Fund Incorporated							190,428
	44,650	New America High Income Fund Incorporated							445,161
									1,593,569


Total Investment Companies (Cost $843,822)									1,593,569

			Yield

Short-Term Investments: 2.68%

Investment Companies: 2.68%
	18,561,673	Wells Fargo Advantage Cash Investment Money Market Fund##(u)(l)		0.12	%				18,561,673


Total Short-Term Investments (Cost $18,561,673)									18,561,673


Total Investments in Securities (Cost $872,986,988)*	132.00	%		914,759,604

Other Assets and Liabilities, Net	(32.00	)		(221,779,483	)


Total Net Assets	100.00	%	$	692,980,121


±		Variable rate investments.

¤		All or a portion of this security has been segregated as collateral for reverse repurchase agreements.

(l)		Investment in an affiliate.

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

¥		Payment-in-kind (PIK) securities are securities 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.

%%		Securities issued on a when-issued (TBA) and/or delayed delivery basis.

ºº		Stepped coupon bond. Interest rate presented is yield to maturity.

^^		This security is currently in default with regards to scheduled interest and/or principal payments.

(i)		Illiquid security

@		Foreign bond principal is denominated in local currency.

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

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

##		All or a portion of this security has been segregated for when-issued, delayed delivery securities and/or unfunded loans.

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

*		Cost for federal income tax purposes is $870,231,300 and net unrealized appreciation (depreciation) consists of:



Gross unrealized appreciation	$	55,534,097
Gross unrealized depreciation		(11,005,523	)

Net unrealized appreciation	$	44,528,574

Wells Fargo Advantage Multi-Sector Income Fund
Notes to Portfolio of Investments — January 31, 2011 (unaudited)

The Fund’s portfolio of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the Fund’s shareholders. For more information regarding the Fund and its holdings, please see the Fund’s most recent prospectus and annual report.

Securities valuation

Investments in securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities, including U.S. Government obligations, but excluding debt securities maturing in 60 days or less, the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Valuation Procedures.

Certain fixed income securities with maturities exceeding 60 days are valued based on available market quotations received from an independent pricing service approved by the Trust’s Board of Trustees which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the pricing service or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or determined based on the Fund’s Fair Value Procedures.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Certain investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. Assets, including investment securities, and liabilities denominated in foreign currency are translated into U.S. dollars at the prevailing rates of exchange at the date of valuation. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting in changes in exchange rates.

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

Forward foreign currency contracts

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

When-issued transactions

The Fund may purchase securities on a forward commitment or ‘when-issued’ basis. The Fund records a when-issued transaction on the trade date and will segregate assets to cover its obligation by confirming the availability of qualifying assets having a value sufficient to make payment for the securities purchased. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Term loans

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

As of January 31, 2011, the Fund had unfunded loan commitments of $824,375.

Fair valuation measurement

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 securities are not necessarily an indication of the risk associated with investing in those securities.

As of January 31, 2011, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
	Quoted		Observable		Unobservable
	Prices		Inputs		Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total

Equity securities
Closed-end funds	$	1,593,569	$	0	$	0	$	1,593,569
Agency securities		0		209,998,799		0		209,998,799
Collateralized mortgage obligations		0		11,371,792		0		11,371,792
Convertible debentures		0		1,089,181		0		1,089,181
Corporate bonds and notes		0		373,190,910		5,839,417		379,030,327
Foreign corporate bonds		0		72,020,553		0		72,020,553
Foreign government bonds		0		134,186,075		0		134,186,075
Term loans		0		38,168,087		0		38,168,087
Yankee corporate bonds and notes		0		48,739,357		191		48,739,548
Short-term investments
Investment companies		18,561,673		0		0		18,561,673

	$	20,155,242	$	888,764,754	$	5,839,608	$	914,759,604

As of January 31, 2011, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:


			Significant Other			Significant
	Quoted		Observable			Unobservable
	Prices		Inputs			Inputs
Other financial instruments	(Level 1)		(Level 2)			(Level 3)		Total

Forward foreign currency contracts	$	0	$	(1,192,971	)	$	0	$	(1,192,971	)

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


	Corporate bonds and		Foreign corporate			Yankee corporate
	notes		bonds			bonds		Total

Balance as of October 31, 2010	$	5,753,667	$	560,823		$	191	$	6,314,681
Accrued discounts (premiums)		576		0			0		576
Realized gains (losses)		0		0			0		0
Change in unrealized gains (losses)		85,174		25,072			0		110,246
Purchases		0		0			0		0
Sales		0		0			0		0
Transfers into level 3		0		0			0		0
Transfers out of level 3		0		(585,895	)		0		(585,895	)
Transfers in from acquisition(s)		0		0			0		0

Balance as of January 31, 2011	$	5,839,417	$	0		$	191	$	5,839,608


Change in unrealized gains (losses) included in earnings relating to securities still held at January 31, 2011	$	85,174	$	0		$	0	$	85,174

Derivative transactions

During the three months ended January 31, 2011, the Fund entered into forward foreign currency exchange contracts for hedging purposes.

At January 31, 2011, the Fund had forward foreign currency exchange contracts outstanding as follows:

Forward Foreign Currency Exchange Contracts to Buy:

U.S. Value at

In Exchange for

Net Unrealized

Exchange Date

Counterparty

Contracts to Receive

January 31, 2011

U.S. $

Gains (Losses)

3/31/2011

State Street Bank

1,030,000,000 JPY

12,554,023

12,443,972

110,051


			U.S. Value at			U.S. Value at		Net Unrealized
Exchange Date	Counterparty	Contracts to Receive	January 31, 2011		In Exchange for	January 31, 2011		Gains (Losses)
2/1/2011	State Street Bank	7,175,000 CAD	$	7,165,327	5,252,178 EUR	$	7,191,021	$	(25,694	)
2/1/2011	State Street Bank	15,850,000 CAD		15,828,631	1,317,087,450 JPY		16,046,387		(217,756	)
2/1/2011	State Street Bank	5,357,276 EUR		7,334,916	7,175,000 CAD		7,165,327		169,589
2/1/2011	State Street Bank	1,717,759 EUR		2,351,870	195,000,000 JPY		2,375,731		(23,861	)
2/1/2011	State Street Bank	1,305,247,500 JPY		15,902,138	15,850,000 CAD		15,828,631		73,507
2/1/2011	State Street Bank	195,000,000 JPY		2,375,731	1,768,659 EUR		2,421,561		(45,830	)
2/15/2011	State Street Bank	6,907,458 GBP		11,063,657	76,000,000 SEK		11,777,540		(713,883	)
2/18/2011	State Street Bank	504,233,600 JPY		6,143,804	17,680,000 PLN		6,149,819		(6,015	)

U.S. Value at

Net Unrealized

Exchange Date

Counterparty

Contracts to Receive

January 31, 2011

In Exchange for

January 31, 2011

Gains (Losses)

2/24/2011

State Street Bank

835,461,600 JPY

10,180,010

10,200,000 AUD

10,137,220

42,790

3/1/2011

State Street Bank

3,500,000 EUR

4,790,339

397,124,000 JPY

4,839,063

(48,724

)

3/1/2011

State Street Bank

5,615,000 GBP

8,992,604

6,613,741 EUR

9,052,017

(59,413

)

3/1/2011

State Street Bank

1,698,000,000 JPY

20,690,586

12,975,699 GBP

20,781,001

(90,415

)

3/25/2011

State Street Bank

1,050,000,000 JPY

12,797,133

12,922,679 AUD

12,796,668

465

4/13/2011

State Street Bank

890,000,000 JPY

10,848,973

14,243,418 NZD

10,932,266

(83,293

)

5/2/2011

State Street Bank

1,908,012,675 JPY

23,262,703

23,025,000 CAD

22,949,267

313,436

Forward Foreign Currency Exchange Contracts to Sell:


			U.S. Value at		In Exchange for		Net Unrealized
Exchange Date	Counterparty	Contracts to Deliver	January 31, 2011		U.S. $		Gains (Losses)
3/2/2011	State Street Bank	82,285,000 MXN	$	6,766,858	$	6,500,632	$	(266,226	)
3/18/2011	State Street Bank	64,500,000 DKK		11,841,819		11,520,120		(321,699	)

The Fund had average market values of $121,840,475 and $17,444,474 in forward foreign currency exchange contracts to buy and forward foreign currency exchange contracts to sell, respectively, during the three months ended January 31, 2011.

ITEM 2. CONTROLS AND PROCEDURES

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

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s 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 Advantage Multi-Sector Income Fund
	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

	Date: March 29, 2011

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


	Wells Fargo Advantage Multi-Sector Income Fund
	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

	Date: March 29, 2011
	By:	/s/ Kasey L. Phillips
		Kasey L. Phillips
		Treasurer

	Date: March 29, 2011

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