Edgar Filing: WELLS FARGO ADVANTAGE UTILITIES & HIGH INCOME 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: 811-21507

Wells Fargo Advantage Utilities and High Income Fund

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

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

(Name and address of agent for service)

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

Date of fiscal year end: August 31, 2011

Date of reporting period: May 31, 2012

ITEM 1.

SCHEDULE OF INVESTMENTS


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)


Security Name	Shares		Value
Common Stocks : 67.18%

Consumer Discretionary : 7.64%

Media : 7.64%

Comcast Corporation Class A		40,300	$	1,165,073
Dish Network Corporation		50,000		1,402,000
Mediaset SpA		1,310,000		2,034,488
Vivendi SA		196,333		3,170,522

				7,772,083


Energy : 7.55%

Oil, Gas & Consumable Fuels : 7.55%
EQT Corporation		15,000		695,700
Kinder Morgan Incorporated		10,578		361,645
Southwestern Energy Company †		25,000		700,750
Spectra Energy Corporation		100,000		2,871,000
The Williams Companies Incorporated		100,000		3,053,000

				7,682,095


Industrials : 5.54%

Air Freight & Logistics : 3.24%
Deutsche Post AG		200,000		3,294,037


Building Products : 0.09%
Ameresco Incorporated Class A †		9,000		96,750


Machinery : 2.21%
Kaydon Corporation		100,600		2,244,386


Information Technology : 0.03%

Internet Software & Services : 0.03%
Facebook Incorporated Class A †		1,000		29,630


Telecommunication Services : 9.10%

Diversified Telecommunication Services : 7.39%
BCE Incorporated		16,000		638,240
France Telecom SA		150,000		1,884,427
Shenandoah Telecommunications Company		40,000		426,400
Tele2 AB Series B		50,000		742,653
Telecom Italia SpA		3,574,400		2,444,120
Telefonica Brasil ADR		18,600		439,332
Windstream Corporation		100,000		936,000

				7,511,172


Wireless Telecommunication Services : 1.71%
Turkcell Iletisim Hizmetleri AS ADR †		80,000		866,400
Vimpelcom Limited ADR		100,000		737,000
Vodafone Group plc ADR		5,000		133,950

				1,737,350


Utilities : 37.32%

Electric Utilities : 30.11%
American Electric Power Company Incorporated		75,000		2,888,250


PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name					Shares		Value
Electric Utilities (continued)

CenterPoint Energy Incorporated						50,000	$	1,011,500
CH Energy Group Incorporated						500		32,815
Chesapeake Utilities Corporation						200		8,452
China Hydroelectric Company ADR †						10,000		10,200
Duke Energy Corporation						500		10,990
Edison International						2,000		89,920
Enel SpA						350,000		996,248
Entergy Corporation						1,000		64,530
Fortum Corporation						75,000		1,361,387
Great Plains Energy Incorporated						150,000		2,988,000
Hawaiian Electric Industries Incorporated						100,000		2,761,000
Hera Group SpA						1,391,000		1,953,888
ITC Holdings Corporation						60,000		4,137,000
Nextera Energy Incorporated						70,000		4,573,800
Northeast Utilities						101,312		3,648,245
NV Energy Incorporated						75,000		1,297,500
Pepco Holdings Incorporated						100		1,906
Progress Energy Incorporated						400		21,928
South Jersey Industries Incorporated						200		9,682
The Southern Company						60,000		2,754,600

								30,621,841


Gas Utilities : 2.15%

MDU Resources Group Incorporated						500		11,235
National Fuel Gas Company						50,000		2,161,500
New Jersey Resources Corporation						200		8,396

								2,181,131


Multi-Utilities : 2.93%

Dominion Resources Incorporated						300		15,618
Public Service Enterprise Group Incorporated						50,000		1,559,500
Sempra Energy						19,900		1,293,699
Wisconsin Energy Corporation						3,000		113,520

								2,982,337


Water Utilities : 2.13%

American Water Works Company Incorporated						50,000		1,710,500
Middlesex Water Company						25,000		455,500

								2,166,000


Total Common Stocks (Cost $71,418,839)								68,318,812


	Interest Rate		Maturity Date		Principal
Corporate Bonds and Notes : 31.05%

Consumer Discretionary : 7.14%

Auto Components : 0.61%

Allison Transmission Incorporated 144A		7.13		05/15/2019	$	250,000		261,250
Cooper Tire & Rubber Company		7.63		03/15/2027		215,000		212,850
Goodyear Tire & Rubber Company		7.00		05/15/2022		25,000		24,500
UR Financing Escrow Company 144A		5.75		07/15/2018		125,000		127,188

								625,788


Diversified Consumer Services : 0.85%

Carriage Services Incorporated		7.88		01/15/2015		185,000		186,388
Service Corporation International		6.75		04/01/2016		100,000		108,250
Service Corporation International		7.50		04/01/2027		465,000		467,325


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Diversified Consumer Services (continued)

Service Corporation International		7.63	%		10/01/2018	$	25,000	$	28,000
Service Corporation International		8.00			11/15/2021		40,000		44,800
Service Corporation International Series WI		7.00			06/15/2017		25,000		27,813

									862,576


Hotels, Restaurants & Leisure : 2.23%

Ameristar Casinos Incorporated		7.50			04/15/2021		225,000		233,438
Burger King Corporation		9.88			10/15/2018		75,000		84,656
CCM Merger Incorporated 144A		9.13			05/01/2019		125,000		125,000
Chukchansi EDA 144A±(i)		4.23			11/15/2012		100,000		74,000
Cinemark USA Incorporated		7.38			06/15/2021		75,000		80,250
Cinemark USA Incorporated		8.63			06/15/2019		50,000		54,375
CityCenter Finance Corporation		7.63			01/15/2016		25,000		25,875
CityCenter Finance Corporation 144A		7.63			01/15/2016		125,000		129,063
CityCenter Finance Corporation ¥		11.50			01/15/2017		139,533		149,300
DineEquity Incorporated		9.50			10/30/2018		350,000		380,188
Greektown Superholdings Incorporated		13.00			07/01/2015		450,000		490,500
Penn National Gaming Incorporated		8.75			08/15/2019		75,000		82,688
Ruby Tuesday Incorporated 144A		7.63			05/15/2020		150,000		138,750
Scientific Games Corporation		9.25			06/15/2019		60,000		66,000
Speedway Motorsports Incorporated		6.75			02/01/2019		25,000		25,688
Speedway Motorsports Incorporated		8.75			06/01/2016		120,000		129,000

									2,268,771


Household Durables : 0.03%
American Greetings Corporation		7.38			12/01/2021		25,000		26,000


Media : 2.85%

Cablevision Systems Corporation		8.63			09/15/2017		145,000		158,413
CCH II Capital Corporation		13.50			11/30/2016		605,000		677,600
CSC Holdings LLC		7.63			07/15/2018		25,000		27,000
CSC Holdings LLC		7.88			02/15/2018		75,000		81,375
DISH DBS Corporation		7.88			09/01/2019		115,000		127,938
Gray Television Incorporated		10.50			06/29/2015		350,000		360,500
Interactive Data Corporation		10.25			08/01/2018		150,000		166,125
Lamar Media Corporation 144A		5.88			02/01/2022		25,000		25,156
Lamar Media Corporation		7.88			04/15/2018		75,000		80,625
Lamar Media Corporation Series C		9.75			04/01/2014		25,000		28,063
LIN Television Corporation		8.38			04/15/2018		100,000		102,500
Local TV Finance LLC 144A¥		9.25			06/15/2015		275,000		280,156
NAI Entertainment Holdings LLC 144A		8.25			12/15/2017		150,000		163,500
National CineMedia LLC 144A		6.00			04/15/2022		75,000		74,813
National CineMedia LLC		7.88			07/15/2021		50,000		52,250
Regal Cinemas Corporation		8.63			07/15/2019		250,000		271,875
Salem Communications Corporation		9.63			12/15/2016		202,000		221,190

									2,899,079


Specialty Retail : 0.36%

Gap Incorporated		5.95			04/12/2021		50,000		51,662
Limited Brands Incorporated		6.63			04/01/2021		25,000		26,813
Radioshack Corporation		6.75			05/15/2019		150,000		110,813
Rent A Center Incorporated		6.63			11/15/2020		25,000		26,250
Toys “R”Us Property Company II LLC		8.50			12/01/2017		150,000		154,285

									369,823


Textiles, Apparel & Luxury Goods : 0.21%
Oxford Industries Incorporated		11.38			07/15/2015		200,000		213,252


PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Consumer Staples : 0.20%

Food Products : 0.20%
Dole Food Company Incorporated		13.88	%		03/15/2014	$	181,000	$	206,340


Energy : 4.70%

Energy Equipment & Services : 1.10%

Bristow Group Incorporated		7.50			09/15/2017		135,000		139,725
Dresser Rand Group Incorporated		6.50			05/01/2021		75,000		76,500
Gulfmark Offshore Incorporated 144A		6.38			03/15/2022		175,000		175,875
Hornbeck Offshore Services Incorporated 144A		5.88			04/01/2020		25,000		24,500
Hornbeck Offshore Services Incorporated Series B		8.00			09/01/2017		55,000		57,613
NGPL PipeCo LLC 144A		7.12			12/15/2017		25,000		23,875
NGPL PipeCo LLC 144A		7.77			12/15/2037		175,000		151,375
NGPL PipeCo LLC 144A		9.63			06/01/2019		125,000		129,063
Oil States International Incorporated		6.50			06/01/2019		125,000		129,063
PHI Incorporated		8.63			10/15/2018		200,000		205,000
Pride International Incorporated		8.50			06/15/2019		10,000		13,077

									1,125,666


Oil, Gas & Consumable Fuels : 3.60%

Coffeyville Resources Energy Incorporated 144A		9.00			04/01/2015		95,000		101,175
Coffeyville Resources Energy Incorporated 144A		10.88			04/01/2017		100,000		112,500
Crestwood Midstream Partnership Company		7.75			04/01/2019		50,000		50,375
Denbury Resources Incorporated		6.38			08/15/2021		25,000		25,938
Denbury Resources Incorporated		8.25			02/15/2020		100,000		108,000
El Paso Corporation		6.50			09/15/2020		45,000		49,622
El Paso Corporation		7.00			06/15/2017		50,000		56,136
El Paso Corporation		7.25			06/01/2018		175,000		198,429
El Paso Corporation		7.42			02/15/2037		90,000		98,954
El Paso Corporation		7.80			08/01/2031		100,000		114,149
Encore Acquisition Company		9.50			05/01/2016		50,000		54,500
Energy Transfer Equity LP		7.50			10/15/2020		300,000		324,000
Ferrellgas LP		9.13			10/01/2017		200,000		207,000
Forest Oil Corporation		8.50			02/15/2014		65,000		68,250
Holly Corporation		9.88			06/15/2017		220,000		243,100
Inergy LP / Inergy Finance Corporation		6.88			08/01/2021		37,000		37,000
Inergy LP / Inergy Finance Corporation		7.00			10/01/2018		50,000		51,000
Overseas Shipholding Group Incorporated		7.50			02/15/2024		75,000		45,000
Petrohawk Energy Corporation		7.88			06/01/2015		95,000		99,264
Petrohawk Energy Corporation		10.50			08/01/2014		60,000		66,665
Pioneer Natural Resource Company		7.50			01/15/2020		145,000		179,406
Plains Exploration & Production Company		8.63			10/15/2019		325,000		352,625
Regency Energy Partners LP		6.88			12/01/2018		25,000		26,125
Rockies Express Pipeline LLC 144A		5.63			04/15/2020		25,000		22,125
Rockies Express Pipeline LLC 144A		6.88			04/15/2040		75,000		61,875
Rockies Express Pipeline LLC 144A		7.50			07/15/2038		75,000		65,625
Sabine Pass LNG LP		7.25			11/30/2013		250,000		260,625
Sabine Pass LNG LP		7.50			11/30/2016		300,000		317,250
Suburban Propane Partners LP		7.38			03/15/2020		25,000		26,250
Susser Holdings LLC		8.50			05/15/2016		125,000		134,219
Tesoro Corporation		9.75			06/01/2019		90,000		101,250

									3,658,432


Financials : 7.21%

Capital Markets : 0.70%

ETRADE Financial Corporation*		12.50			11/30/2017		68,000		78,030
Nuveen Investments Incorporated		5.50			09/15/2015		225,000		202,500
Nuveen Investments Incorporated		10.50			11/15/2015		300,000		303,000


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Capital Markets (continued)

Oppenheimer Holdings Incorporated		8.75	%		04/15/2018	$	125,000	$	126,250
									709,780
Commercial Banks : 0.64%

CIT Group Incorporated 144A		4.75			02/15/2015		200,000		199,000
CIT Group Incorporated		5.00			05/15/2017		25,000		24,563
CIT Group Incorporated 144A		5.25			04/01/2014		100,000		101,750
CIT Group Incorporated		5.25			03/15/2018		25,000		24,625
CIT Group Incorporated 144A		5.50			02/15/2019		100,000		97,250
Emigrant Bancorp Incorporated 144A(i)		6.25			06/15/2014		225,000		205,204

									652,392


Consumer Finance : 4.66%

Ally Financial Incorporated Company		5.50			02/15/2017		50,000		50,061
Ally Financial Incorporated Company		8.30			02/12/2015		825,000		882,750
American General Finance Corporation		5.40			12/01/2015		150,000		122,250
American General Finance Corporation		5.75			09/15/2016		50,000		39,750
American General Finance Corporation		6.50			09/15/2017		50,000		39,125
Calpine Construction Finance Corporation 144A		7.25			10/15/2017		400,000		422,000
Calpine Construction Finance Corporation 144A		8.00			06/01/2016		125,000		134,063
Clearwire Communications Finance Corporation 144A		12.00			12/01/2015		130,000		113,425
Ford Motor Credit Company LLC		8.00			12/15/2016		25,000		30,223
General Motors Financial Company		6.75			06/01/2018		100,000		107,400
GMAC LLC		6.75			12/01/2014		36,000		37,440
GMAC LLC		6.88			08/28/2012		146,000		147,278
Homer City Funding LLC		8.73			10/01/2026		136,276		132,188
International Lease Finance Corporation 144A		6.75			09/01/2016		50,000		53,625
International Lease Finance Corporation 144A		7.13			09/01/2018		25,000		27,500
International Lease Finance Corporation		8.63			09/15/2015		75,000		81,750
JBS USA Finance Incorporated		11.63			05/01/2014		420,000		476,700
Nielsen Finance LLC		7.75			10/15/2018		500,000		537,500
Nielsen Finance LLC		11.50			05/01/2016		49,000		55,370
Springleaf Finance Corporation		6.90			12/15/2017		250,000		196,250
Sprint Capital Corporation		6.88			11/15/2028		1,175,000		872,438
Sprint Capital Corporation		8.75			03/15/2032		220,000		185,350

									4,744,436


Insurance : 0.44%

HUB International Holdings Incorporated 144A		10.25			06/15/2015		275,000		278,094
USI Holdings Corporation 144A±		4.34			11/15/2014		50,000		45,625
USI Holdings Corporation 144A		9.75			05/15/2015		125,000		124,063

									447,782


REITs : 0.77%

Dupont Fabros Technology Incorporated		8.50			12/15/2017		565,000		615,850
Host Marriott Corporation		9.00			05/15/2017		30,000		33,225
Omega Healthcare Investors		6.75			10/15/2022		125,000		131,875

									780,950


Health Care : 1.23%

Health Care Equipment & Supplies : 0.06%
Biomet Incorporated ¥		10.38			10/15/2017		60,000		63,863


Health Care Providers & Services : 0.95%

Apria Healthcare Group		11.25			11/01/2014		70,000		71,838
Aviv Healthcare Properties LP		7.75			02/15/2019		100,000		104,000


PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Health Care Providers & Services (continued)

Centene Corporation		5.75	%		06/01/2017	$	75,000	$	75,563
Emergency Medical Services		8.13			06/01/2019		25,000		25,500
HCA Incorporated		5.88			03/15/2022		25,000		24,813
HCA Incorporated		6.50			02/15/2020		175,000		184,844
HCA Incorporated		7.50			11/15/2095		50,000		38,500
Health Management Associates Incorporated		6.13			04/15/2016		50,000		52,375
HealthSouth Corporation		7.25			10/01/2018		25,000		26,063
HealthSouth Corporation		7.75			09/15/2022		25,000		26,250
MPT Operating Partnership LP		6.38			02/15/2022		25,000		24,875
MPT Operating Partnership LP		6.88			05/01/2021		125,000		128,750
PSS World Medical Incorporated 144A		6.38			03/01/2022		25,000		25,250
Sabra Health Care Corporation		8.13			11/01/2018		150,000		158,250

									966,871


Life Sciences Tools & Services : 0.03%
Community Health Systems Incorporated Series WI		8.88			07/15/2015		30,000		30,769


Pharmaceuticals : 0.19%

Mylan Incorporated 144A		6.00			11/15/2018		75,000		77,438
Mylan Incorporated 144A		7.63			07/15/2017		25,000		27,281
Mylan Incorporated 144A		7.88			07/15/2020		75,000		82,500

									187,219


Industrials : 1.87%

Aerospace & Defense : 0.53%

Alliant Techsystems Incorporated		6.75			04/01/2016		225,000		229,500
Geoeye Incorporated		9.63			10/01/2015		55,000		60,775
Hexcel Corporation		6.75			02/01/2015		48,000		48,480
L-3 Communications Holdings Incorporated		6.38			10/15/2015		167,000		170,758
Transdigm Incorporated		7.75			12/15/2018		25,000		26,563

									536,076


Commercial Services & Supplies : 0.79%

Casella Waste Systems Incorporated		11.00			07/15/2014		220,000		231,550
Corrections Corporation of America		7.75			06/01/2017		95,000		102,363
Covanta Holding Corporation		6.38			10/01/2022		50,000		51,876
Geo Group Incorporated		7.75			10/15/2017		125,000		133,438
Iron Mountain Incorporated		8.38			08/15/2021		155,000		165,463
KAR Holdings Incorporated ±		4.47			05/01/2014		125,000		124,375

									809,065


Industrial Conglomerates : 0.23%
Otter Tail Corporation		9.00			12/15/2016		215,000		232,200


Machinery : 0.31%

Cleaver-Brooks Incorporated 144A		12.25			05/01/2016		55,000		58,163
Columbus McKinnon Corporation		7.88			02/01/2019		75,000		79,125
CPM Holdings Incorporated		10.63			09/01/2014		150,000		159,000
Titan International Incorporated		7.88			10/01/2017		25,000		25,875

									322,163


Road & Rail : 0.01%
RailAmerica Incorporated		9.25			07/01/2017		6,000		6,201


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Information Technology : 2.62%

Communications Equipment : 0.35%

Avaya Incorporated		9.75	%		11/01/2015	$	50,000	$	41,250
EchoStar DBS Corporation		7.13			02/01/2016		50,000		53,500
Lucent Technologies Incorporated		6.45			03/15/2029		155,000		106,563
Lucent Technologies Incorporated Series B		2.88			06/15/2025		160,000		157,400

									358,713


Computers & Peripherals : 0.19%

Seagate Technology HDD Holdings		6.80			10/01/2016		50,000		55,125
Seagate Technology HDD Holdings		6.88			05/01/2020		25,000		26,063
Seagate Technology HDD Holdings		7.75			12/15/2018		100,000		107,750

									188,938


Electronic Equipment, Instruments & Components : 0.84%

CDW LLC / CDW Financial Corporation		12.54			10/12/2017		125,000		133,750
Jabil Circuit Incorporated		8.25			03/15/2018		620,000		719,200

									852,950


Internet Software & Services : 0.10%
Equinix Incorporated		8.13			03/01/2018		95,000		103,788


IT Services : 1.14%
Audatex North America Incorporated 144A		6.75			06/15/2018		50,000		51,500
Fidelity National Information Services Incorporated 144A		5.00			03/15/2022		25,000		24,281
Fidelity National Information Services Incorporated		7.63			07/15/2017		25,000		27,219
Fidelity National Information Services Incorporated 144A		7.63			07/15/2017		25,000		27,094
Fidelity National Information Services Incorporated		7.88			07/15/2020		100,000		110,750
First Data Corporation 144A		7.38			06/15/2019		50,000		50,000
First Data Corporation		11.25			03/31/2016		375,000		326,250
SunGard Data Systems Incorporated		7.38			11/15/2018		50,000		50,875
SunGard Data Systems Incorporated		7.63			11/15/2020		25,000		25,625
SunGard Data Systems Incorporated		10.25			08/15/2015		325,000		333,938
TW Telecommunications Holdings Incorporated		8.00			03/01/2018		75,000		81,375
Unisys Corporation 144A		12.75			10/15/2014		47,000		51,700

									1,160,607


Materials : 0.80%

Chemicals : 0.20%

Huntsman International LLC		5.50			06/30/2016		140,000		140,000
Solutia Incorporated		7.88			03/15/2020		50,000		58,500

									198,500


Commercial Services & Supplies : 0.04%
Crown Cork & Seal Company Incorporated (i)		7.50			12/15/2096		50,000		42,750


Containers & Packaging : 0.15%

Ball Corporation		5.00			03/15/2022		25,000		25,250
Crown Americas LLC		7.63			05/15/2017		25,000		27,000
Owens Brockway Glass Container Incorporated		7.38			05/15/2016		50,000		55,250
Silgan Holdings Incorporated 144A		5.00			04/01/2020		50,000		49,875

									157,375


PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Metals & Mining : 0.16%

Novelis Incorporated		8.38	%		12/15/2017	$	100,000	$	105,500
Novelis Incorporated		8.75			12/15/2020		50,000		52,875

									158,375


Paper & Forest Products : 0.25%

Clearwater Paper Corporation		10.63			06/15/2016		70,000		78,050
Georgia-Pacific Corporation		8.88			05/15/2031		125,000		176,175

									254,225


Telecommunication Services : 2.96%

Diversified Telecommunication Services : 1.84%

Citizens Communications Company		7.88			01/15/2027		200,000		172,750
Frontier Communications Corporation		8.13			10/01/2018		60,000		61,050
Frontier Communications Corporation		8.25			05/01/2014		140,000		153,300
GCI Incorporated		6.75			06/01/2021		75,000		73,875
GCI Incorporated		8.63			11/15/2019		200,000		212,500
Intelsat Jackson Holdings Company 144A		7.25			10/15/2020		75,000		74,438
Intelsat Jackson Holdings Company		7.25			10/15/2020		75,000		74,625
Intelsat Jackson Holdings Company		9.50			06/15/2016		300,000		310,200
Qwest Corporation		7.50			06/15/2023		180,000		179,550
Qwest Corporation		7.63			08/03/2021		20,000		21,854
SBA Telecommunications Incorporated		8.00			08/15/2016		32,000		34,160
SBA Telecommunications Incorporated		8.25			08/15/2019		32,000		34,720
Telesat Canada Incorporated 144A		6.00			05/15/2017		50,000		49,125
U.S. West Communications Incorporated		7.25			09/15/2025		125,000		135,325
Windstream Corporation		7.88			11/01/2017		265,000		282,225

									1,869,697


Wireless Telecommunication Services : 1.12%

Allbritton Communications Company		8.00			05/15/2018		150,000		155,250
CC Holdings GS V LLC 144A		7.75			05/01/2017		50,000		53,750
Cricket Communications Incorporated		7.75			10/15/2020		150,000		137,250
Cricket Communications Incorporated Series I		7.75			05/15/2016		125,000		131,875
Crown Castle International Corporation		7.13			11/01/2019		10,000		10,775
MetroPCS Communications Incorporated		6.63			11/15/2020		200,000		193,500
MetroPCS Communications Incorporated		7.88			09/01/2018		50,000		50,500
Sprint Nextel Corporation 144A		9.00			11/15/2018		25,000		27,063
Sprint Nextel Corporation 144A		11.50			11/15/2021		25,000		26,375
Syniverse Holdings Incorporation		9.13			01/15/2019		325,000		348,563

									1,134,901


Utilities : 2.32%

Electric Utilities : 1.95%

Aquila Incorporated Step Bond		11.88			07/01/2012		794,000		799,727
Dolphin Subsidiary Incorporated 144A		7.25			10/15/2021		200,000		217,500
Ipalco Enterprises Incorporated		5.00			05/01/2018		75,000		73,875
Mirant Mid-Atlantic LLC Series C		10.06			12/30/2028		438,432		447,201
NRG Energy Incorporated		7.38			01/15/2017		250,000		258,125
NRG Energy Incorporated		8.50			06/15/2019		185,000		185,000

									1,981,428


Gas Utilities : 0.22%

AmeriGas Finance LLC		6.75			05/20/2020		175,000		172,375
AmeriGas Finance LLC		7.00			05/20/2022		50,000		49,000

									221,375


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Independent Power Producers & Energy Traders : 0.15%

Reliant Energy Incorporated		9.24	%		07/02/2017	$	95,082	$	93,181
Reliant Energy Incorporated		9.68			07/02/2026		10,000		9,500
RRI Energy Incorporated		7.63			06/15/2014		50,000		50,250

									152,931


Total Corporate Bonds and Notes (Cost $30,623,724)									31,582,047

	Dividend Yield					Shares
Preferred Stocks : 10.52%

Financials : 0.05%

Consumer Finance : 0.05%
GMAC Capital Trust I ±		8.13					2,200		50,424


Utilities : 10.47%

Electric Utilities : 5.90%

Great Plains Energy Incorporated		12.00					50,000		2,979,500
Indianapolis Power & Light Company		4.20					20,000		2,003,750
Southern California Edison		6.50					5,000		527,813
Wisconsin Public Service		5.08					4,804		485,805

									5,996,868


Multi-Utilities : 4.57%
Scana Corporation		7.70					165,000		4,648,050


Total Preferred Stocks (Cost $10,534,755)									10,695,342

	Interest Rate			Maturity Date		Principal
Term Loans : 3.58%
Capital Automotive LP		5.25			03/10/2017	$	278,701		273,476
CCM Merger Incorporated		6.00			03/01/2017		309,078		306,606
Coinmach Corporation		3.24			11/20/2014		270,507		251,571
Energy Transfer Equity LP		3.75			03/21/2017		100,000		97,083
Fairpoint Communications Incorporated		6.50			01/22/2016		374,063		312,148
Federal Mogul Corporation		2.18			12/29/2014		82,047		77,124
Federal Mogul Corporation		2.18			12/28/2015		41,861		39,349
First Data Corporation B1		2.99			09/24/2014		164,254		155,309
First Data Corporation B2		2.99			09/24/2014		240,789		227,676
First Data Corporation B3		2.99			09/24/2014		70,394		66,561
Focus Brands Incorporated		10.25			08/22/2018		125,000		125,625
Gray Television Incorporated		3.74			12/31/2014		70,890		70,181
HHI Holdings LLC		7.00			03/21/2017		99,000		98,629
Merisant Company (i)		7.50			01/08/2014		70,698		69,755
Newsday LLC		10.50			08/01/2013		365,000		372,074
Panolam Industries International (i)		8.25			12/31/2013		20,545		20,135
Springleaf Finance Corporation		5.50			05/10/2017		100,000		92,208
Texas Competitive Electric Holdings Company LLC		3.74			10/10/2014		1,371,940		836,033
United Surgical Partners International Incorporated		6.00			03/19/2019		100,000		99,000
WASH Multifamily Laundry Systems LLC		7.00			08/28/2014		49,361		48,908

Total Term Loans (Cost $4,047,037)									3,639,451


PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name						Shares		Value
Warrants : 0.04%

Utilities : 0.04%

Electric Utilities : 0.00%
China Hydroelectric Company ADR †							10,000	$	200

Gas Utilities : 0.04%
Kinder Morgan Incorporated †							16,000		36,480


Total Warrants (Cost $42,480)									36,680

	Interest Rate			Maturity Date		Principal
Yankee Corporate Bonds and Notes : 0.94%

Consumer Discretionary : 0.10%

Media : 0.10%

Vidéotron GP 144A		5.00	%		07/15/2022	$	25,000		24,375
Vidéotron GP		9.13			04/15/2018		75,000		81,938

									106,313


Energy : 0.17%

Oil, Gas & Consumable Fuels : 0.17%
Griffin Coal Mining Company Limited 144A(s)		9.50			12/01/2016		209,550		173,665


Financials : 0.19%

Consumer Finance : 0.09%
Wind Acquisition Finance SA 144A		11.75			07/15/2017		110,000		93,500


Diversified Financial Services : 0.10%
Ship Finance International Limited		8.50			12/15/2013		105,000		103,950


Information Technology : 0.03%

Computers & Peripherals : 0.03%
Seagate HDD Cayman Company		7.00			11/01/2021		25,000		26,250


Materials : 0.11%

Metals & Mining : 0.03%
Teck Resources Limited		10.75			05/15/2019		27,000		32,826


Paper & Forest Products : 0.08%
Sappi Limited 144A		7.50			06/15/2032		100,000		81,000


Telecommunication Services : 0.34%

Diversified Telecommunication Services : 0.17%

Intelsat Jackson Holding Company		7.25			04/01/2019		125,000		124,844
Intelsat Jackson Holding Company		7.50			04/01/2021		50,000		50,000

									174,844


Wireless Telecommunication Services : 0.17%

Digicel Group Limited 144A		12.00			04/01/2014		20,000		22,000
Intelsat Limited		11.25			06/15/2016		116,000		121,075
Intelsat Limited ¥		11.50			02/04/2017		25,000		24,563

									167,638


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — May 31, 2012 (UNAUDITED)


	Yield			Shares		Value
Total Yankee Corporate Bonds and Notes (Cost $947,268)						$	959,986


Short-Term Investments : 5.51%

Investment Companies : 5.51%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.10	%		5,607,230		5,607,230


							5,607,230


Total Short-Term Investments (Cost $5,607,230)

Total Investments in Securities (Cost $123,221,333)*		118.82	%				120,839,548
Other Assets and Liabilities, Net		(18.82	)				(19,143,383	)


Total Net Assets		100.00	%			$	101,696,165

†	Non-income earning security

144A

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

±	Variable rate investment

(i)

Illiquid security

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

(s)

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

(l)

Investment in an affiliate

(u)

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

*	Cost for federal income tax purposes is $123,905,949 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	11,578,456
Gross unrealized depreciation		(14,644,857	)

Net unrealized depreciation	$	(3,066,401	)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND

NOTES TO PORTFOLIO OF INVESTMENTS – May 31, 2012 (UNAUDITED)

The following notes are to be read in conjunction with the Portfolio of Investments for Wells Fargo Advantage Utilities and High Income Fund (the “Fund”).

Securities valuation

Investments in equity 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 Valuation Procedures.

Securities denominated in foreign currencies are translated into U.S. dollars using the closing rates of exchange in effect on the day of valuation.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of securities, then fair value pricing procedures approved by the Board of Trustees are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. As a result of the fair value pricing procedures, these securities which are normally categorized as Level 1 in the fair value hierarchy will represent a transfer from a Level 1 to a Level 2 security and will be categorized as Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in NAVs that are higher or lower than NAVs based on the closing price or latest quoted bid price. On May 31, 2012, fair value pricing was not used in pricing foreign securities.

Fixed income securities with original maturities exceeding 60 days are valued based on evaluated prices received from an independent pricing service approved by the 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 Valuation Procedures.

Debt securities of sufficient credit quality with original maturities of 60 days or less generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Investments in open-end mutual funds and non-registered investment companies are fair 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 by procedures established in good faith and approved by the Board of Trustees. 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 in determining the fair value of portfolio securities, unless the responsibility has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Fair Value Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees considers for ratification any valuation actions taken by the Valuation Committee or the Management Valuation Team.

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

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. 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.

When-issued transactions

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

Term loans

The Fund may invest in term loans. The 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.

Fair valuation measurements

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


Level 1	–	quoted prices in active markets for identical securities

Level 2	–	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, 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 May 31, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity securities
Common stocks	$	68,318,812	$	0	$	0	$	68,318,812
Preferred stocks		7,677,974		3,017,368		0		10,695,342
Corporate bonds and notes		0		31,582,047		0		31,582,047
Term loans		0		3,395,062		244,389		3,639,451
Warrants		36,480		200		0		36,680
Yankee corporate bonds and notes		0		959,986		0		959,986
Short-term investments
Investment companies		5,607,230		0		0		5,607,230

	$	81,640,496	$	38,954,663	$	244,389	$	120,839,548

Transfers in and transfers out are recognized at the end of the reporting period. For the nine months ended May 31, 2012, the Fund did not have any significant transfers into/out of Level 1 and Level 2.

Derivative transactions

During the nine months ended May 31, 2012, the Fund entered into written options for economic hedging purposes.

During the nine months ended May 31, 2012, the Fund had written call option activities as follows:


	Number of Contracts			Premiums Received
Options outstanding at August 31, 2011		0		$	0
Options written		396			10,939
Options expired		(320	)		(7,844	)
Options closed		0			0
Options exercised		(76	)		(3,095	)

Options outstanding at May 31, 2012		0		$	0

As of May 31, 2012, the Fund did not have any open written options but had total premiums received that averaged $1,148 during the nine months ended May 31, 2012.

The following is a list of common abbreviations for terms and entities which may have appeared in the portfolio of investments.

ACB — Agricultural Credit Bank

ADR — American Depository Receipt

ADS — American Depository Shares

AGC-ICC — Assured Guaranty Corporation - Insured Custody Certificates

AGM — Assured Guaranty Municipal

AMBAC — American Municipal Bond Assurance Corporation

AMT — Alternative Minimum Tax

AUD — Australian Dollar

BAN — Bond Anticipation Notes

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazil Real

CAB — Capital Appreciation Bond

CAD — Canadian Dollar

CCAB — Convertible Capital Appreciation Bond

CDA — Community Development Authority

CDO — Collateralized Debt Obligation

CHF — Swiss Franc

COP — Certificate of Participation

CR — Custody Receipts

DKK — Danish Krone

DRIVER — Derivative Inverse Tax-Exempt Receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETF — Exchange-Traded Fund

EUR — Euro

FFCB — Federal Farm Credit Bank

FGIC — Financial Guaranty Insurance Corporation

FGLMC—Federal Government Loan Mortgage Company

FHA — Federal Housing Authority

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FICO — The Financing Corporation

FNMA — Federal National Mortgage Association

FSA — Farm Service Agency

GBP — Great British Pound

GDR — Global Depository Receipt

GNMA — Government National Mortgage Association

GO — General Obligation

HCFR — Healthcare Facilities Revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher Education Facilities Authority Revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong Dollar

HUF — Hungarian Forint

IBC — Insured Bond Certificate

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Industrial Development Revenue

IEP — Irish Pound

JPY — Japanese Yen

KRW — Republic of Korea Won

LIBOR — London Interbank Offered Rate

LIQ — Liquidity Agreement

LLC — Limited Liability Company

LLP — Limited Liability Partnership

LOC — Letter of Credit

LP — Limited Partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multi-Family Housing Revenue

MSTR — Municipal Securities Trust Receipts

MTN — Medium Term Note

MUD — Municipal Utility District

MXN — Mexican Peso

MYR — Malaysian Ringgit

NATL-RE — National Public Finance Guarantee Corporation

NOK — Norwegian Krone

NZD — New Zealand Dollar

PCFA — Pollution Control Finance Authority

PCR — Pollution Control Revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable Floating Option Tax-Exempt Receipts

plc — Public Limited Company

PLN — Polish Zloty

PUTTER — Puttable Tax-Exempt Receipts

R&D — Research & Development

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real Estate Investment Trust

ROC — Reset Option Certificates

SAVRS — Select Auction Variable Rate Securities

SBA — Small Business Authority

SEK — Swedish Krona

SFHR — Single Family Housing Revenue

SFMR — Single Family Mortgage Revenue

SGD — Singapore Dollar

SKK — Slovakian Koruna

SPA — Standby Purchase Agreement

SPDR — Standard & Poor’s Depositary Receipts

STRIPS — Separate Trading of Registered Interest and Principal Securities

TAN — Tax Anticipation Notes

TBA — To Be Announced

TIPS — Treasury Inflation-Protected Securities

TRAN — Tax Revenue Anticipation Notes

TCR — Transferable Custody Receipts

TRY — Turkish Lira

TTFA — Transportation Trust Fund Authority

TVA — Tennessee Valley Authority

XLCA — XL Capital Assurance

ZAR — South African Rand

ITEM 2.

CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Advantage Utilities and High 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 Utilities and High Income Fund

By:		/s/ Karla M. Rabusch

		Karla M. Rabusch President

Date:		July 27, 2012

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 Utilities and High Income Fund

By:		/s/ Karla M. Rabusch

		Karla M. Rabusch President

Date:		July 27, 2012

By:		/s/ Kasey L. Phillips

		Kasey L. Phillips Treasurer

Date:		July 27, 2012