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

Date of reporting period: May 31, 2013

ITEM 1. INVESTMENTS


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2013 (unaudited)


Security name	Shares		Value
Common Stocks : 54.06%

Consumer Discretionary : 1.68%

Media : 1.68%
DISH Network Corporation		50,000	$	1,927,000

Energy : 7.12%

Oil, Gas & Consumable Fuels : 7.12%
EQT Corporation		15,000		1,198,200
Kinder Morgan Incorporated		10,577		401,714
Spectra Energy Corporation		100,000		3,057,000
The Williams Companies Incorporated		100,000		3,518,000

				8,174,914

Industrials : 7.54%

Air Freight & Logistics : 4.39%
Deutsche Post AG		200,000		5,039,972

Building Products : 0.07%
Ameresco Incorporated Class A †		9,000		74,340

Commercial Services & Supplies : 3.08%
Suez Environnement Company SA		275,000		3,541,072

Information Technology : 0.59%

Internet Software & Services : 0.28%
AOL Incorporated		9,200		318,872

IT Services : 0.31%
SAIC Incorporated		25,000		362,500

Telecommunication Services : 4.39%

Diversified Telecommunication Services : 1.02%
BCE Incorporated		16,000		714,880
Telefonica Brasil ADR		18,600		459,606

				1,174,486

Wireless Telecommunication Services : 3.37%
Shenandoah Telecommunications Company		40,000		665,600
Tele2 AB-B Redemption Shares †		254,200		1,070,784
Tele2 AB-B Shares		79,200		986,768
VimpelCom Limited ADR		100,000		995,000
Vodafone Group plc ADR		5,000		144,750

				3,862,902

Utilities : 32.74%

Electric Utilities : 25.06%
American Electric Power Company Incorporated		25,000		1,145,500
Chesapeake Utilities Corporation		200		10,590
Duke Energy Corporation		30,514		2,042,302
Edison International		2,000		91,880
Enel SpA		350,000		1,317,369
Entergy Corporation		1,000		68,880
Great Plains Energy Incorporated		175,000		3,949,750


Portfolio of investments — May 31, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Shares		Value
Electric Utilities (continued)
Hera SpA		1,467,400	$	3,149,051
IDACORP Incorporated		25,000		1,180,750
ITC Holdings Corporation		45,000		3,895,650
Nextera Energy Incorporated		50,000		3,781,000
Northeast Utilities		90,000		3,750,300
NV Energy Incorporated		75,000		1,758,000
Pepco Holdings Incorporated		100		2,077
The Southern Company		60,000		2,634,000

				28,777,099

Gas Utilities : 0.02%
New Jersey Resources		200		9,076
South Jersey Industries Incorporated		200		11,684

				20,760

Multi-Utilities : 4.02%
CenterPoint Energy Incorporated		50,000		1,159,000
CH Energy Group Incorporated		500		32,365
Dominion Resources Incorporated		300		16,965
MDU Resources Group Incorporated		500		12,930
Public Service Enterprise Group Incorporated		50,000		1,652,000
Sempra Energy		19,900		1,617,870
Wisconsin Energy Corporation		3,000		122,430

				4,613,560

Water Utilities : 3.64%
American Water Works Company Incorporated		50,000		1,997,000
Veolia Environnement SA		175,400		2,190,639

				4,187,639


Total Common Stocks (Cost $47,675,618)				62,075,116


	Interest rate			Maturity date		Principal
Corporate Bonds and Notes : 30.45%

Consumer Discretionary : 7.61%

Auto Components : 0.75%
Allison Transmission Incorporated 144A		7.13	%		5-15-2019	$	340,000	365,500
Cooper Tire & Rubber Company		7.63			3-15-2027		215,000	233,006
Goodyear Tire & Rubber Company		7.00			5-15-2022		25,000	26,938
Penske Automotive Group Incorporated 144A		5.75			10-1-2022		80,000	84,300
Sonic Automotive Incorporated 144A		5.00			5-15-2023		20,000	19,850
United Rentals North America Incorporated		5.75			7-15-2018		125,000	133,438

								863,032

Distributors : 0.17%
LKQ Corporation 144A		4.75			5-15-2023		190,000	189,525

Diversified Consumer Services : 0.65%
Ceridian Corporation 144A		11.00			3-15-2021		10,000	11,425
Service Corporation International		6.75			4-1-2016		100,000	111,000
Service Corporation International		7.00			6-15-2017		25,000	28,563
Service Corporation International		7.50			4-1-2027		351,000	394,875
Service Corporation International		7.63			10-1-2018		25,000	29,500
Service Corporation International		8.00			11-15-2021		40,000	49,200


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Diversified Consumer Services (continued)
Sotheby’s 144A		5.25	%	10-1-2022	$	125,000	$	125,938

								750,501

Hotels, Restaurants & Leisure : 2.60%
Ameristar Casinos Incorporated		7.50		4-15-2021		225,000		245,250
Burger King Corporation		9.88		10-15-2018		75,000		84,750
CCM Merger Incorporated 144A		9.13		5-1-2019		465,000		509,175
CityCenter Holdings LLC		7.63		1-15-2016		100,000		106,250
CityCenter Holdings LLC ¥		10.75		1-15-2017		245,431		267,520
DineEquity Incorporated		9.50		10-30-2018		350,000		393,750
Greektown Superholdings Incorporated Series A		13.00		7-1-2015		300,000		321,750
Greektown Superholdings Incorporated Series B		13.00		7-1-2015		150,000		160,875
NAI Entertainment Holdings LLC 144A		8.25		12-15-2017		330,000		356,400
Penn National Gaming Incorporated		8.75		8-15-2019		75,000		83,438
Ruby Tuesday Incorporated		7.63		5-15-2020		135,000		135,844
Scientific Games Corporation		9.25		6-15-2019		60,000		66,000
Speedway Motorsports Incorporated		6.75		2-1-2019		120,000		127,800
Speedway Motorsports Incorporated		8.75		6-1-2016		120,000		125,250

								2,984,052

Household Durables : 0.05%
American Greetings Corporation		7.38		12-1-2021		25,000		25,344
Tempur-Pedic International Incorporated 144A		6.88		12-15-2020		25,000		26,969

								52,313

Media : 2.87%
Allbritton Communications Company		8.00		5-15-2018		150,000		162,000
Cablevision Systems Corporation		8.63		9-15-2017		145,000		168,925
CCO Holdings LLC		5.75		1-15-2024		10,000		10,100
CCO Holdings LLC		6.50		4-30-2021		200,000		215,000
Cinemark USA Incorporated 144A		4.88		6-1-2023		50,000		49,813
Cinemark USA Incorporated		7.38		6-15-2021		75,000		83,813
Cinemark USA Incorporated		8.63		6-15-2019		165,000		185,130
CSC Holdings LLC		7.63		7-15-2018		45,000		52,875
CSC Holdings LLC		7.88		2-15-2018		75,000		88,125
CSC Holdings LLC		8.63		2-15-2019		125,000		149,063
DISH DBS Corporation 144A		4.25		4-1-2018		50,000		48,750
DISH DBS Corporation 144A		5.13		5-1-2020		25,000		24,375
DISH DBS Corporation		7.88		9-1-2019		115,000		128,944
EchoStar DBS Corporation		7.13		2-1-2016		50,000		54,750
Gray Television Incorporated		7.50		10-1-2020		260,000		278,200
Lamar Media Corporation		5.88		2-1-2022		75,000		81,000
Lamar Media Corporation		7.88		4-15-2018		130,000		140,725
Lamar Media Corporation Series C		9.75		4-1-2014		25,000		26,438
LIN Television Corporation		6.38		1-15-2021		25,000		26,625
LIN Television Corporation		8.38		4-15-2018		150,000		161,250
Local TV Finance LLC 144A		9.25		6-15-2015		425,000		425,000
Lynx I Corporation 144A		5.38		4-15-2021		25,000		26,000
Lynx II Corporation 144A		6.38		4-15-2023		25,000		26,063
National CineMedia LLC		6.00		4-15-2022		170,000		182,325
National CineMedia LLC		7.88		7-15-2021		50,000		56,000
Nexstar Broadcasting Group Incorporated 144A		6.88		11-15-2020		95,000		101,175
Regal Cinemas Corporation		8.63		7-15-2019		285,000		316,350
Regal Entertainment Group		5.75		6-15-2023		30,000		30,038

								3,298,852

Specialty Retail : 0.52%
ABC Supply Company Incorporated 144A		5.63		4-15-2021		40,000		40,500


Portfolio of investments — May 31, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Specialty Retail (continued)
CST Brands Incorporated 144A		5.00	%	5-1-2023	$	10,000	$	10,100
Limited Brands Incorporated		6.63		4-1-2021		25,000		28,563
RadioShack Corporation		6.75		5-15-2019		165,000		129,113
Rent-A-Center Incorporated 144A		4.75		5-1-2021		20,000		19,600
Rent-A-Center Incorporated		6.63		11-15-2020		145,000		155,513
Toys “R” Us Property Company I LLC		10.75		7-15-2017		55,000		58,300
Toys “R” Us Property Company II LLC		8.50		12-1-2017		150,000		158,813

								600,502

Consumer Staples : 0.24%

Food Products : 0.24%
B&G Foods Incorporated		4.63		6-1-2021		75,000		75,000
B&G Foods Incorporated		7.63		1-15-2018		50,000		53,813
Hawk Acquisition Incorporated 144A		4.25		10-15-2020		150,000		148,875

								277,688

Energy : 5.54%

Energy Equipment & Services : 1.63%
Cleaver Brooks Incorporated 144A		8.75		12-15-2019		25,000		27,188
Dresser-Rand Group Incorporated		6.50		5-1-2021		90,000		97,425
Era Group Incorporated 144A		7.75		12-15-2022		110,000		114,400
Gulfmark Offshore Incorporated		6.38		3-15-2022		305,000		317,200
Hornbeck Offshore Services Incorporated 144A		5.00		3-1-2021		220,000		218,900
NGPL PipeCo LLC 144A		7.12		12-15-2017		25,000		26,250
NGPL PipeCo LLC 144A		7.77		12-15-2037		270,000		271,350
NGPL PipeCo LLC 144A		9.63		6-1-2019		115,000		128,225
Northern Tier Energy LLC 144A		7.13		11-15-2020		100,000		105,250
Oil States International Incorporated 144A		5.13		1-15-2023		45,000		48,488
Oil States International Incorporated		6.50		6-1-2019		164,000		176,710
PHI Incorporated		8.63		10-15-2018		305,000		331,688
Pride International Incorporated		8.50		6-15-2019		10,000		13,149

								1,876,223

Oil, Gas & Consumable Fuels : 3.91%
CVR Refining LLC 144A		6.50		11-1-2022		100,000		103,500
Denbury Resources Incorporated		4.63		7-15-2023		25,000		24,188
Denbury Resources Incorporated		6.38		8-15-2021		25,000		27,500
Denbury Resources Incorporated		8.25		2-15-2020		140,000		156,800
El Paso Corporation		6.50		9-15-2020		45,000		50,854
El Paso Corporation		7.00		6-15-2017		75,000		85,482
El Paso Corporation		7.25		6-1-2018		175,000		203,341
El Paso Corporation		7.42		2-15-2037		90,000		91,942
El Paso Corporation		7.80		8-1-2031		100,000		111,701
Energy Transfer Equity LP		7.50		10-15-2020		300,000		344,250
Exterran Partners LP 144A		6.00		4-1-2021		150,000		153,750
Ferrellgas LP		9.13		10-1-2017		95,000		100,700
HollyFrontier Corporation		9.88		6-15-2017		220,000		231,264
Inergy Midstream LP 144A		6.00		12-15-2020		55,000		57,475
Kinder Morgan Energy 144A		6.00		1-15-2018		25,000		27,619
Petrohawk Energy Corporation		7.88		6-1-2015		95,000		97,090
Petrohawk Energy Corporation		10.50		8-1-2014		60,000		63,570
Pioneer Natural Resources Company		7.50		1-15-2020		145,000		182,461
Plains Exploration & Production Company		8.63		10-15-2019		325,000		366,438
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		185,000		177,600
Rockies Express Pipeline LLC 144A		6.00		1-15-2019		25,000		24,688
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		510,000		469,200
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		205,000		191,675
Sabine Pass Liquefaction LLC 144A		5.63		2-1-2021		75,000		75,281
Sabine Pass Liquefaction LLC 144A		5.63		4-15-2023		75,000		75,000


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Oil, Gas & Consumable Fuels (continued)
Sabine Pass LNG LP 144A		6.50	%	11-1-2020	$	390,000	$	408,525
Sabine Pass LNG LP		7.50		11-30-2016		300,000		334,500
Suburban Propane Partners LP		7.38		3-15-2020		60,000		64,200
Suburban Propane Partners LP		7.38		8-1-2021		36,000		38,790
Suburban Propane Partners LP		7.50		10-1-2018		42,000		45,098
Tesoro Corporation		9.75		6-1-2019		90,000		99,900

								4,484,382

Financials : 5.33%
Commercial Banks : 0.53%
CIT Group Incorporated 144A		4.75		2-15-2015		120,000		125,100
CIT Group Incorporated		5.00		5-15-2017		25,000		26,625
CIT Group Incorporated		5.25		3-15-2018		25,000		26,875
CIT Group Incorporated 144A		5.50		2-15-2019		100,000		108,250
CIT Group Incorporated 144A		6.63		4-1-2018		50,000		56,250
Emigrant Bancorp Incorporated 144A		6.25		6-15-2014		275,000		267,829

								610,929

Consumer Finance : 3.12%
Ahern Rentals Incorporated 144A		9.50		6-15-2018		85,000		85,000
Ally Financial Incorporated		5.50		2-15-2017		50,000		53,532
Ally Financial Incorporated		8.30		2-12-2015		825,000		907,500
American General Finance Corporation		5.40		12-1-2015		150,000		154,500
American General Finance Corporation		5.75		9-15-2016		50,000		51,125
American General Finance Corporation		6.50		9-15-2017		50,000		51,000
Clearwire Communications Finance Corporation 144A		12.00		12-1-2015		130,000		138,944
First Data Corporation 144A		11.75		8-15-2021		80,000		77,400
Ford Motor Credit Company LLC		8.00		12-15-2016		25,000		30,019
General Motors Financial Company Incorporated 144A		3.25		5-15-2018		15,000		14,869
General Motors Financial Company Incorporated 144A		4.25		5-15-2023		15,000		14,625
General Motors Financial Company Incorporated		6.75		6-1-2018		120,000		136,800
GMAC LLC		6.75		12-1-2014		36,000		38,520
Homer City Funding LLC ¥		9.23		10-1-2026		149,149		158,471
International Lease Finance Corporation 144A		6.75		9-1-2016		50,000		56,563
International Lease Finance Corporation 144A		7.13		9-1-2018		35,000		41,256
International Lease Finance Corporation		8.63		9-15-2015		75,000		84,469
JBS USA Finance Incorporated		11.63		5-1-2014		420,000		451,500
Nielsen Finance LLC Company 144A		4.50		10-1-2020		40,000		40,100
Nielsen Finance LLC Company		7.75		10-15-2018		515,000		566,500
Springleaf Finance Corporation 144A		6.00		6-1-2020		175,000		168,875
Springleaf Finance Corporation		6.90		12-15-2017		250,000		259,063

								3,580,631

Diversified Financial Services : 0.48%
HUB International Limited Company 144A		8.13		10-15-2018		210,000		225,750
Nuveen Investments Incorporated		5.50		9-15-2015		275,000		276,375
Nuveen Investments Incorporated 144A		9.13		10-15-2017		50,000		52,500

								554,625

Insurance : 0.04%
Fidelity & Guaranty Life Holdings Incorporated 144A		6.38		4-1-2021		45,000		46,350


Real Estate Management & Development : 0.38%
Ashtead Capital Incorporated 144A		6.50		7-15-2022		235,000		253,800
Onex Corporation 144A		7.75		1-15-2021		170,000		174,675

								428,475


Portfolio of investments — May 31, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value
REITs : 0.78%
Dupont Fabros Technology Incorporated		8.50	%	12-15-2017	$	565,000	$	604,550
Omega Healthcare Investors Incorporated		6.75		10-15-2022		125,000		136,250
Sabra Health Care Incorporated		5.38		6-1-2023		50,000		50,813
Sabra Health Care Incorporated		8.13		11-1-2018		98,000		106,575

								898,188

Health Care : 1.35%

Health Care Equipment & Supplies : 0.10%
Hologic Incorporated		6.25		8-1-2020		110,000		117,563

Health Care Providers & Services : 1.14%
Aviv HealthCare Properties LP		7.75		2-15-2019		100,000		109,250
Centene Corporation		5.75		6-1-2017		75,000		80,438
Community Health Systems Incorporated		5.13		8-15-2018		40,000		41,700
Community Health Systems Incorporated		7.13		7-15-2020		50,000		54,875
DaVita HealthCare Partners Incorporated		5.75		8-15-2022		55,000		58,575
DaVita HealthCare Partners Incorporated		6.38		11-1-2018		5,000		5,313
HCA Incorporated		4.75		5-1-2023		25,000		24,938
HCA Incorporated		5.88		3-15-2022		25,000		27,438
HCA Incorporated		6.50		2-15-2020		175,000		197,313
HCA Incorporated		7.50		11-15-2095		50,000		47,250
HCA Incorporated		8.50		4-15-2019		250,000		272,500
Health Management Associates Incorporated		6.13		4-15-2016		50,000		54,750
HealthSouth Corporation		5.75		11-1-2024		50,000		51,750
HealthSouth Corporation		7.25		10-1-2018		22,000		23,733
HealthSouth Corporation		7.75		9-15-2022		22,000		24,310
MPT Operating Partnership LP		6.38		2-15-2022		25,000		27,375
MPT Operating Partnership LP		6.88		5-1-2021		125,000		138,125
Select Medical Corporation 144A		6.38		6-1-2021		70,000		69,694

								1,309,327

Pharmaceuticals : 0.11%
Mylan Incorporated 144A		6.00		11-15-2018		115,000		125,080


Industrials : 1.55%

Aerospace & Defense : 0.13%
TransDigm Group Incorporated 144A		5.50		10-15-2020		70,000		72,450
TransDigm Group Incorporated		7.75		12-15-2018		75,000		81,844

								154,294

Air Freight & Logistics : 0.18%
Bristow Group Incorporated		6.25		10-15-2022		195,000		211,575


Airlines : 0.17%
Aviation Capital Group Corporation 144A		4.63		1-31-2018		25,000		25,846
Aviation Capital Group Corporation 144A		6.75		4-6-2021		100,000		111,065
Aviation Capital Group Corporation 144A		7.13		10-15-2020		50,000		56,938

								193,849

Commercial Services & Supplies : 0.55%
Covanta Holding Corporation		6.38		10-1-2022		50,000		53,971
Covanta Holding Corporation		7.25		12-1-2020		10,000		10,930
Geo Group Incorporated 144A		5.13		4-1-2023		125,000		127,500
Geo Group Incorporated		6.63		2-15-2021		20,000		21,800
Geo Group Incorporated		7.75		10-15-2017		160,000		169,000
Iron Mountain Incorporated		5.75		8-15-2024		25,000		25,313
Iron Mountain Incorporated		8.00		6-15-2020		25,000		26,038


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Commercial Services & Supplies (continued)
Iron Mountain Incorporated		8.38	%	8-15-2021	$	180,000	$	195,525

								630,077

Machinery : 0.25%
Columbus McKinnon Corporation		7.88		2-1-2019		75,000		80,625
H&E Equipment Services Incorporated		7.00		9-1-2022		195,000		210,600

								291,225

Marine : 0.04%

Hornbeck Offshore Services Incorporated		5.88		4-1-2020		40,000		41,700

Professional Services : 0.15%
Interactive Data Corporation		10.25		8-1-2018		150,000		168,375

Transportation Infrastructure : 0.08%
Florida East Coast Railway Corporation		8.13		2-1-2017		65,000		69,225
Watco Companies LLC 144A		6.38		4-1-2023		20,000		21,050

								90,275

Information Technology : 2.28%

Communications Equipment : 0.15%
Avaya Incorporated		9.75		11-1-2015		50,000		49,250
Lucent Technologies Incorporated		6.45		3-15-2029		155,000		124,388

								173,638

Computers & Peripherals : 0.18%
NCR Corporation		5.00		7-15-2022		205,000		206,538

Electronic Equipment, Instruments & Components : 0.75%
CDW Financial Corporation		12.54		10-12-2017		99,000		106,425
Jabil Circuit Incorporated		8.25		3-15-2018		620,000		750,200

								856,625

Internet Software & Services : 0.02%
Equinix Incorporated		4.88		4-1-2020		10,000		10,175
Verisign Incorporated 144A		4.63		5-1-2023		10,000		10,050

								20,225

IT Services : 1.11%
Audatex North American Incorporated 144A		6.75		6-15-2018		50,000		53,188
CyrusOne LLC 144A		6.38		11-15-2022		25,000		26,688
Fidelity National Information Services Incorporated		7.88		7-15-2020		100,000		112,077
First Data Corporation 144A		7.38		6-15-2019		50,000		52,750
First Data Corporation		11.25		3-31-2016		392,000		393,960
SunGard Data Systems Incorporated 144A		6.63		11-1-2019		100,000		105,250
SunGard Data Systems Incorporated		7.38		11-15-2018		475,000		505,875
SunGard Data Systems Incorporated		7.63		11-15-2020		25,000		27,500

								1,277,288

Software : 0.07%
Nuance Communications Incorporated 144A		5.38		8-15-2020		85,000		86,063


Portfolio of investments — May 31, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Materials : 0.53%

Chemicals : 0.10%
Celanese US Holdings LLC		5.88	%	6-15-2021	$	20,000	$	22,050
Tronox Finance LLC 144A		6.38		8-15-2020		90,000		88,425

								110,475

Containers & Packaging : 0.27%
Crown Americas LLC 144A		4.50		1-15-2023		50,000		48,875
Crown Americas LLC		6.25		2-1-2021		20,000		21,850
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		50,000		49,250
Owens-Illinois Incorporated		7.80		5-15-2018		60,000		70,800
Sealed Air Corporation 144A		6.88		7-15-2033		70,000		71,400
Silgan Holdings Incorporated		5.00		4-1-2020		50,000		51,125

								313,300

Paper & Forest Products : 0.16%
Georgia-Pacific LLC		8.88		5-15-2031		125,000		184,888

Telecommunication Services : 3.97%

Diversified Telecommunication Services : 1.89%
Citizens Communications Company		7.88		1-15-2027		200,000		201,000
Frontier Communications Corporation		8.13		10-1-2018		60,000		68,925
Frontier Communications Corporation		8.25		5-1-2014		3,000		3,158
GCI Incorporated		6.75		6-1-2021		170,000		166,175
GCI Incorporated		8.63		11-15-2019		368,000		392,840
Qwest Corporation		7.25		9-15-2025		125,000		145,657
Qwest Corporation		7.63		8-3-2021		20,000		22,207
SBA Telecommunications Incorporated		8.25		8-15-2019		7,000		7,665
Syniverse Holdings Incorporated		9.13		1-15-2019		365,000		398,763
TW Telecommunications Holdings Incorporated		5.38		10-1-2022		445,000		460,575
Windstream Corporation		7.88		11-1-2017		265,000		304,750

								2,171,715

Wireless Telecommunication Services : 2.08%
Cricket Communications Incorporated		7.75		10-15-2020		180,000		179,550
Crown Castle International Corporation		5.25		1-15-2023		100,000		101,250
Crown Castle International Corporation		7.13		11-1-2019		10,000		10,850
MetroPCS Wireless Incorporated 144A		6.25		4-1-2021		10,000		10,475
MetroPCS Wireless Incorporated		6.63		11-15-2020		240,000		256,800
MetroPCS Wireless Incorporated 144A		6.63		4-1-2023		10,000		10,575
MetroPCS Wireless Incorporated		7.88		9-1-2018		130,000		141,700
SBA Telecommunications Incorporated 144A		5.63		10-1-2019		10,000		10,300
SBA Telecommunications Incorporated 144A		5.75		7-15-2020		100,000		104,000
Sprint Capital Corporation		6.88		11-15-2028		1,100,000		1,100,000
Sprint Capital Corporation		8.75		3-15-2032		220,000		256,300
Sprint Nextel Corporation 144A		9.00		11-15-2018		25,000		30,313
Sprint Nextel Corporation		11.50		11-15-2021		25,000		34,500
TW Telecommunications Holdings Incorporated		8.00		3-1-2018		130,000		139,750

								2,386,363

Utilities : 2.05%

Electric Utilities : 0.94%
Energy Future Intermediate Holding Company LLC 144A		6.88		8-15-2017		25,000		26,500
IPALCO Enterprises Incorporated		5.00		5-1-2018		100,000		107,500
IPALCO Enterprises Incorporated 144A		7.25		4-1-2016		160,000		178,800
Mirant Mid-Atlantic LLC Series C		10.06		12-30-2028		438,432		506,389


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Electric Utilities (continued)
Otter Tail Corporation		9.00	%	12-15-2016	$	215,000	$	251,550

								1,070,739

Gas Utilities : 0.24%
AmeriGas Finance LLC		6.50		5-20-2021		5,000		5,325
AmeriGas Finance LLC		6.75		5-20-2020		175,000		190,750
AmeriGas Finance LLC		7.00		5-20-2022		75,000		81,375

								277,450

Independent Power Producers & Energy Traders : 0.87%
Calpine Construction Finance Corporation 144A		7.25		10-15-2017		360,000		376,200
Calpine Construction Finance Corporation 144A		8.00		6-1-2016		125,000		130,000
NRG Energy Incorporated		8.50		6-15-2019		185,000		202,113
NSG Holdings LLC 144A		7.75		12-15-2025		125,000		135,625
Reliant Energy Incorporated		7.63		6-15-2014		50,000		53,480
Reliant Energy Incorporated		9.24		7-2-2017		84,017		92,419
Reliant Energy Incorporated		9.68		7-2-2026		10,000		10,900

								1,000,737


Total Corporate Bonds and Notes (Cost $32,720,458)								34,965,652


	Dividend yield				Shares
Preferred Stocks : 15.02%

Financials : 0.05%

Diversified Financial Services : 0.05%
GMAC Capital Trust I ±		8.13				2,200		58,564

Telecommunication Services : 2.05%

Diversified Telecommunication Services : 2.05%
Qwest Corporation		7.00				90,000		2,358,000

Utilities : 12.92%

Electric Utilities : 6.84%
Duke Energy Corporation		5.13				130,000		3,239,600
Indianapolis Power & Light Company		5.65				20,000		2,024,376
Interstate Power & Light Company		5.10				50,000		1,272,000
SCE Trust I		5.63				23,000		586,500
Southern California Edison		6.50				2,260		241,891
Wisconsin Public Service		5.08				4,804		485,054

								7,849,421

Multi-Utilities : 6.08%
DTE Energy Company		5.25				100,000		2,530,000
SCANA Corporation		7.70				165,000		4,455,000

								6,985,000


Total Preferred Stocks (Cost $16,886,708)								17,250,985

	Interest rate				Principal
Term Loans : 2.75%
Alliance Laundry Systems LLC		9.50		12-10-2019	$	114,122		116,405


Portfolio of investments — May 31, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value
Term Loans (continued)
Applied Systems Incorporated		8.25	%	6-8-2017	$	20,000	$	20,192
Capital Automotive LP		4.00		4-5-2019		206,286		207,575
Capital Automotive LP		6.00		4-30-2020		110,000		113,850
CBAC Borrower LLC <		0.00		4-24-2020		85,000		87,444
CCM Merger Incorporated		5.00		3-1-2017		165,306		166,256
Centaur LLC		8.75		2-20-2020		125,000		126,979
Energy Transfer Equity LP		3.75		3-23-2017		33,750		34,045
Federal-Mogul Corporation		2.14		12-27-2014		81,190		79,363
Federal-Mogul Corporation		2.14		12-27-2015		41,423		40,491
Focus Brands Incorporated		10.25		8-21-2018		176,935		180,473
Level 3 Financing Incorporated		4.75		2-1-2016		238,650		240,739
Philadelphia Energy Solutions LLC		6.25		4-4-2018		225,000		228,938
Spin Holdco Incorporated		4.25		11-15-2019		80,000		80,400
Springleaf Finance Corporation		5.50		5-10-2017		54,268		54,427
Tallgrass Energy Partners LP		5.25		11-13-2018		109,060		109,605
Texas Competitive Electric Holdings LLC		3.72		10-10-2014		1,471,940		1,137,977
Total Safety US Incorporated		9.25		8-21-2020		19,950		20,249
Washington Multifamily Laundry Systems LLC		5.25		2-21-2019		110,000		110,550

Total Term Loans (Cost $3,328,732)								3,155,958


				Expiration date	Shares
Warrants : 0.08%

Utilities : 0.08%

Electric Utilities : 0.00%
China Hydroelectric Company ADR †				1-25-2014		10,000		230

Gas Utilities : 0.08%
Kinder Morgan Incorporated †				05-25-2017		16,000		90,080


Total Warrants (Cost $42,480)								90,310


	Interest rate			Maturity date	Principal
Yankee Corporate Bonds and Notes : 1.68%

Consumer Discretionary : 0.10%

Media : 0.10%
Videotron Limited		5.00		7-15-2022	$	35,000		35,875
Videotron Limited		9.13		4-15-2018		75,000		78,750

								114,625

Energy : 0.07%

Oil, Gas & Consumable Fuels : 0.07%
Griffin Coal Mining Company Limited 144A(s)		9.50		12-1-2016		93,118		79,616


Financials : 0.10%

Consumer Finance : 0.10%
Wind Acquisition Finance SpA 144A		11.75		7-15-2017		110,000		115,775


Information Technology : 0.39%

Computers & Peripherals : 0.39%
Seagate Technology HDD Holdings 144A		4.75		6-1-2023		150,000		145,500
Seagate Technology HDD Holdings		6.80		10-1-2016		50,000		57,188
Seagate Technology HDD Holdings		6.88		5-1-2020		25,000		26,750
Seagate Technology HDD Holdings		7.00		11-1-2021		25,000		27,500


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Computers & Peripherals (continued)
Seagate Technology HDD Holdings		7.75	%	12-15-2018	$	170,000	$	189,550

								446,488

Materials : 0.24%

Metals & Mining : 0.17%
Novelis Incorporated		8.38		12-15-2017		100,000		108,000
Novelis Incorporated		8.75		12-15-2020		75,000		83,813

								191,813

Paper & Forest Products : 0.07%
Sappi Limited 144A		7.50		6-15-2032		100,000		85,000

Telecommunication Services : 0.78%

Diversified Telecommunication Services : 0.74%
Intelsat Bermuda Limited 144A		7.75		6-1-2021		95,000		99,869
Intelsat Bermuda Limited 144A		8.13		6-1-2023		30,000		32,100
Intelsat Bermuda Limited		11.25		2-4-2017		54,000		57,132
Intelsat Jackson Holdings Limited 144A		5.50		8-1-2023		200,000		196,000
Intelsat Jackson Holdings Limited		7.25		4-1-2019		225,000		242,438
Intelsat Jackson Holdings Limited		7.50		4-1-2021		50,000		54,938
Intelsat Jackson Holdings SA		7.25		10-15-2020		150,000		162,750

								845,227

Wireless Telecommunication Services : 0.04%
Telesat Canada Incorporated 144A		6.00		5-15-2017		50,000		52,250


Total Yankee Corporate Bonds and Notes (Cost $1,840,930)								1,930,794

Short-Term Investments : 7.01%

				Yield	Shares
Investment Companies : 7.01%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##				0.10		8,054,140		8,054,140


Total Short-Term Investments (Cost $8,054,140)								8,054,140


Total investments in securities (Cost $110,549,066)*		111.05	%					127,522,955
Other assets and liabilities, net		(11.05	)					(12,692,578	)


Total net assets		100.00	%				$	114,830,377

†	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.

¥	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.

(i)

Illiquid security

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

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

(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


Portfolio of investments — May 31, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund

(u)

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

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

*	Cost for federal income tax purposes is $111,236,960 and unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	19,722,073
Gross unrealized depreciation		(3,436,078	)

Net unrealized appreciation	$	16,285,995

Wells Fargo Advantage Utilities and High Income Fund (the “Fund”)

Notes to Portfolio of Investments – May 31, 2013 (unaudited)

Securities valuation

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

Equity securities that are listed on a foreign or domestic exchange, except for The Nasdaq Stock Market, Inc. (“Nasdaq”), are valued at the official closing price or, if none, the last sales price. Securities listed on Nasdaq are valued at the Nasdaq Official Closing Price (“NOCP”). If no NOCP is available, securities are valued at the last sales price. If no sales price is shown on the Nasdaq, the bid price will be used. If no sale occurs on the primary exchange or market for the security that day or if no sale occurs and no bid price is shown on Nasdaq, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Securities denominated in foreign currencies are translated into U.S. dollars using the rates of exchange in effect on the day of valuation at a time specified by the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”).

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 such 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. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and 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 last reported sales price or latest quoted bid price. On May 31, 2013, fair value pricing was used in pricing foreign securities.

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Short-term securities with 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 registered open-end investment companies are valued at net asset value.

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

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market 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 subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

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

Term loans

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

As of May 31, 2013 the Fund had unfunded loan commitments of $87,525.

Fair valuation measurements

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


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

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

As of May 31, 2013, the inputs used in valuing investments in securities 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	$	45,850,245	$	16,224,871	$	0	$	62,075,116
Preferred stocks		14,499,664		2,751,321		0		17,250,985
Warrants		0		90,310		0		90,310
Corporate bonds and notes		0		34,965,652		0		34,965,652
Term loans		0		2,385,493		770,465		3,155,958
Yankee corporate bonds and notes		0		1,930,794		0		1,930,794
Short-term investments
Investment companies		8,054,140		0		0		8,054,140

	$	68,404,049	$	58,348,441	$	770,465	$	127,522,955

Transfers in and transfers out are recognized at the end of the reporting period.

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

ACA — ACA Financial Guaranty Corporation

ADR — American depositary receipt

ADS — American depositary shares

AGC — Assured Guaranty Corporation

AGM — Assured Guaranty Municipal

Ambac — Ambac Financial Group Incorporated

AMT — Alternative minimum tax

AUD — Australian dollar

BAN — Bond anticipation notes

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazilian real

CAB — Capital appreciation bond

CAD — Canadian dollar

CCAB — Convertible capital appreciation bond

CDA — Community Development Authority

CDO — Collateralized debt obligation

CHF — Swiss franc

COP — Certificate of participation

DKK — Danish krone

DRIVER — Derivative inverse tax-exempt receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETF — Exchange-traded fund

EUR — Euro

FDIC — Federal Deposit Insurance Corporation

FFCB — Federal Farm Credit Banks

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Administration

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FICO — The Financing Corporation

FNMA — Federal National Mortgage Association

FSA — Farm Service Agency

GBP — Great British pound

GDR — Global depositary receipt

GNMA — Government National Mortgage Association

GO — General obligation

HCFR — Healthcare facilities revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher education facilities authority revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong dollar

HUD — Department of Housing and Urban Development

HUF — Hungarian forint

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Industrial development revenue

IEP — Irish pound

JPY — Japanese yen

KRW — Republic of Korea won

LIBOR — London Interbank Offered Rate

LIQ — Liquidity agreement

LLC — Limited liability company

LLP — Limited liability partnership

LOC — Letter of credit

LP — Limited partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multifamily housing revenue

MSTR — Municipal securities trust receipts

MTN — Medium-term note

MUD — Municipal Utility District

MXN — Mexican peso

MYR — Malaysian ringgit

National — National Public Finance Guarantee Corporation

NOK — Norwegian krone

NZD — New Zealand dollar

PCFA — Pollution Control Financing Authority

PCL — Public Company Limited

PCR — Pollution control revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable floating option tax-exempt receipts

plc — Public limited company

PLN — Polish zloty

PUTTER — Puttable tax-exempt receipts

R&D — Research & development

Radian — Radian Asset Assurance

RAN — Revenue anticipation notes

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real estate investment trust

ROC — Reset option certificates

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

TRY — Turkish lira

TTFA — Transportation Trust Fund Authority

TVA — Tennessee Valley Authority

ZAR — South African rand

ITEM 2. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Advantage 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 second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

SIGNATURES

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


Wells Fargo Advantage Utilities and High Income Fund

By:		/s/ Karla M. Rabusch

		Karla M. Rabusch
		President

Date: July 26, 2013

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 26, 2013

By:		/s/ Nancy Wiser

		Nancy Wiser
		Treasurer

Date: July 26, 2013