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: Registrant is making a filing for Wells Fargo Advantage Utilities and High Income Fund. The Fund had an August 31 fiscal year end.

Date of reporting period: November 30, 2013

ITEM 1. INVESTMENTS


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2013 (unaudited)


Security name	Shares		Value

Common Stocks : 66.12%

Energy : 7.41%

Oil, Gas & Consumable Fuels : 7.41%

Energen Corporation		13,200	$	952,644
EQT Corporation		15,000		1,276,650
Kinder Morgan Incorporated		10,577		375,907
Spectra Energy Corporation		75,000		2,516,250
The Williams Companies Incorporated		100,000		3,522,000

				8,643,451


Industrials : 4.62%

Air Freight & Logistics : 4.55%
Deutsche Post AG		150,000		5,304,263


Construction & Engineering : 0.07%
Ameresco Incorporated Class A †		9,000		82,620


Telecommunication Services : 15.59%

Diversified Telecommunication Services : 8.16%

BCE Incorporated		16,000		707,040
CenturyLink Incorporated		100,000		3,070,000
Telefonica Brasil ADR		212,500		4,135,250
Windstream Holdings Incorporated		200,000		1,614,000

				9,526,290


Wireless Telecommunication Services : 7.43%

Shenandoah Telecommunications Company		40,000		999,200
Tele2 AB Class B		79,200		965,832
VimpelCom Limited ADR		100,000		1,228,000
Vodafone Group plc ADR		147,500		5,470,775

				8,663,807


Utilities : 38.50%

Electric Utilities : 26.67%

American Electric Power Company Incorporated		100,000		4,706,000
Chesapeake Utilities Corporation		200		11,636
Duke Energy Corporation		30,514		2,134,759
Edison International		75,000		3,465,750
Enel SpA		200,000		909,652
Entergy Corporation		1,000		61,890
Great Plains Energy Incorporated		175,000		4,154,500
IDACORP Incorporated		25,000		1,292,000
ITC Holdings Corporation		45,000		4,071,600
NextEra Energy Incorporated		50,000		4,229,500
Northeast Utilities		90,000		3,697,200
NV Energy Incorporated		75,000		1,773,750
Pepco Holdings Incorporated		100		1,908
The Southern Company		15,000		609,450

				31,119,595


Gas Utilities : 0.02%

New Jersey Resources Corporation		200		9,138
South Jersey Industries Incorporated		200		11,340

				20,478


Portfolio of investments — November 30, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name					Shares		Value

Multi-Utilities : 10.00%

CenterPoint Energy Incorporated						50,000	$	1,171,500
Dominion Resources Incorporated						300		19,473
MDU Resources Group Incorporated						500		14,835
Public Service Enterprise Group Incorporated						50,000		1,634,500
Sempra Energy						19,900		1,759,956
Suez Environnement Company SA						275,000		4,725,882
Veolia Environnement SA						137,000		2,218,485
Wisconsin Energy Corporation						3,000		125,310

								11,669,941


Water Utilities : 1.81%
American Water Works Company Incorporated						50,000		2,117,500


Total Common Stocks (Cost $59,610,423)								77,147,945


	Interest rate			Maturity date	Principal

Corporate Bonds and Notes : 28.40%

Consumer Discretionary : 6.33%

Auto Components : 0.62%

Allison Transmission Incorporated 144A		7.13	%	5-15-2019	$	340,000		366,350
Cooper Tire & Rubber Company		7.63		3-15-2027		205,000		194,238
Goodyear Tire & Rubber Company		7.00		5-15-2022		25,000		26,938
United Rentals North America Incorporated		5.75		7-15-2018		125,000		134,219

								721,745


Diversified Consumer Services : 0.60%

Ceridian HCM Holding Incorporated 144A		11.00		3-15-2021		10,000		11,550
Service Corporation International 144A		5.38		1-15-2022		10,000		10,100
Service Corporation International		6.75		4-1-2016		100,000		108,750
Service Corporation International		7.00		6-15-2017		25,000		28,063
Service Corporation International		7.50		4-1-2027		351,000		372,938
Service Corporation International		7.63		10-1-2018		25,000		28,813
Service Corporation International		8.00		11-15-2021		40,000		45,850
Sotheby’s 144A		5.25		10-1-2022		95,000		90,250

								696,314


Hotels, Restaurants & Leisure : 1.99%

Burger King Corporation		9.88		10-15-2018		75,000		83,531
CCM Merger Incorporated 144A		9.13		5-1-2019		465,000		488,250
DineEquity Incorporated		9.50		10-30-2018		350,000		388,500
Greektown Superholdings Incorporated Series A		13.00		7-1-2015		580,000		595,950
Greektown Superholdings Incorporated Series B		13.00		7-1-2015		150,000		154,125
Hilton Worldwide Finance LLC 144A		5.63		10-15-2021		15,000		15,300
Pinnacle Entertainment Incorporated		7.50		4-15-2021		260,000		282,100
Ruby Tuesday Incorporated		7.63		5-15-2020		135,000		126,900
Scientific Games Corporation		9.25		6-15-2019		60,000		64,650
Speedway Motorsports Incorporated		6.75		2-1-2019		120,000		127,500

								2,326,806


Household Durables : 0.04%

American Greetings Corporation		7.38		12-1-2021		25,000		25,125
Tempur Sealy International Incorporated		6.88		12-15-2020		25,000		27,000

								52,125


Media : 2.64%

Allbritton Communications Company		8.00		5-15-2018		150,000		160,125


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Media (continued)

Cablevision Systems Corporation		8.63	%	9-15-2017	$	145,000	$	167,838
Cinemark USA Incorporated		7.38		6-15-2021		75,000		81,938
CSC Holdings LLC		7.63		7-15-2018		45,000		51,863
CSC Holdings LLC		7.88		2-15-2018		75,000		86,438
CSC Holdings LLC		8.63		2-15-2019		125,000		147,500
DISH DBS Corporation		5.13		5-1-2020		25,000		25,188
DISH DBS Corporation		7.88		9-1-2019		115,000		133,113
DreamWorks Animation SKG Incorporated 144A		6.88		8-15-2020		115,000		122,188
EchoStar DBS Corporation		7.13		2-1-2016		50,000		55,250
Gray Television Incorporated		7.50		10-1-2020		305,000		321,013
Gray Television Incorporated 144A		7.50		10-1-2020		80,000		84,200
Lamar Media Corporation		5.88		2-1-2022		75,000		77,344
Lamar Media Corporation		7.88		4-15-2018		130,000		138,288
Lamar Media Corporation Series C		9.75		4-1-2014		25,000		25,758
LIN Television Corporation		6.38		1-15-2021		25,000		25,656
LIN Television Corporation		8.38		4-15-2018		150,000		159,750
Live Nation Entertainment Incorporated 144A		7.00		9-1-2020		15,000		16,200
Local TV Finance LLC 144A		9.25		6-15-2015		425,000		429,250
Lynx I Corporation 144A		5.38		4-15-2021		25,000		25,438
Lynx II Corporation 144A		6.38		4-15-2023		25,000		25,813
National CineMedia LLC		6.00		4-15-2022		170,000		175,950
National CineMedia LLC		7.88		7-15-2021		50,000		55,000
Nexstar Broadcasting Group		6.88		11-15-2020		145,000		153,338
Regal Cinemas Corporation		8.63		7-15-2019		285,000		306,375
Regal Entertainment Group		5.75		6-15-2023		30,000		29,513

								3,080,327


Specialty Retail : 0.44%

ABC Supply Company Incorporated 144A		5.63		4-15-2021		40,000		40,500
Ahern Rentals Incorporated 144A		9.50		6-15-2018		85,000		91,375
L Brands Incorporated		6.63		4-1-2021		25,000		27,531
Neiman Marcus Group Limited 144A		8.00		10-15-2021		15,000		15,413
Penske Auto Group Incorporated		5.75		10-1-2022		80,000		80,800
Rent-A-Center Incorporated		6.63		11-15-2020		145,000		153,338
Toys “R” Us Property Company II LLC		8.50		12-1-2017		100,000		103,625

								512,582


Consumer Staples : 0.08%

Food Products : 0.08%
Hawk Acquisition Incorporated 144A		4.25		10-15-2020		100,000		96,250


Energy : 5.61%

Energy Equipment & Services : 1.54%

Cleaver Brooks Incorporated 144A		8.75		12-15-2019		25,000		27,313
Dresser-Rand Group Incorporated		6.50		5-1-2021		90,000		95,400
Era Group Incorporated		7.75		12-15-2022		185,000		189,625
Forum Energy Technologies Incorporated 144A		6.25		10-1-2021		15,000		15,638
Gulfmark Offshore Incorporated		6.38		3-15-2022		330,000		334,950
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		190,000		187,150
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		40,000		41,200
NGPL PipeCo LLC 144A		7.77		12-15-2037		350,000		306,250
Oil States International Incorporated		6.50		6-1-2019		164,000		174,455
PHI Incorporated		8.63		10-15-2018		380,000		408,500
Pride International Incorporated		8.50		6-15-2019		10,000		12,800

								1,793,281


Oil, Gas & Consumable Fuels : 4.07%

Crestwood Midstream Partners LP 144A		6.13		3-1-2022		25,000		25,563
CVR Refining LLC		6.50		11-1-2022		100,000		99,000


Portfolio of investments — November 30, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Oil, Gas & Consumable Fuels (continued)

Denbury Resources Incorporated		4.63	%	7-15-2023	$	25,000	$	22,563
Denbury Resources Incorporated		6.38		8-15-2021		25,000		26,688
Denbury Resources Incorporated		8.25		2-15-2020		140,000		154,525
El Paso Corporation		6.50		9-15-2020		45,000		48,579
El Paso Corporation		7.00		6-15-2017		75,000		84,864
El Paso Corporation		7.25		6-1-2018		175,000		199,001
El Paso Corporation		7.42		2-15-2037		90,000		86,400
El Paso Corporation		7.80		8-1-2031		100,000		102,247
Energy Transfer Equity LP		7.50		10-15-2020		300,000		342,000
Exterran Partners LP 144A		6.00		4-1-2021		225,000		223,875
Inergy Midstream LP 144A		6.00		12-15-2020		76,000		77,805
Kinder Morgan Energy 144A		6.00		1-15-2018		25,000		27,483
Murphy Oil USA Incorporated 144A		6.00		8-15-2023		30,000		30,600
Northern Tier Energy LLC		7.13		11-15-2020		140,000		144,550
Petrohawk Energy Corporation		7.88		6-1-2015		95,000		97,375
Petrohawk Energy Corporation		10.50		8-1-2014		60,000		61,080
Pioneer Natural Resources Company		7.50		1-15-2020		145,000		177,595
Plains Exploration & Production Company		8.63		10-15-2019		325,000		358,615
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		260,000		239,200
Rockies Express Pipeline LLC 144A		6.00		1-15-2019		25,000		23,750
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		435,000		365,400
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		205,000		180,400
Sabine Pass Liquefaction LLC 144A		5.63		4-15-2023		75,000		71,063
Sabine Pass Liquefaction LLC 144A		6.25		3-15-2022		125,000		124,688
Sabine Pass LNG LP 144A		5.63		2-1-2021		75,000		74,063
Sabine Pass LNG LP		6.50		11-1-2020		390,000		403,650
Sabine Pass LNG LP		7.50		11-30-2016		370,000		418,100
Semgroup LP 144A		7.50		6-15-2021		210,000		220,500
Suburban Propane Partners LP		7.38		3-15-2020		60,000		64,350
Suburban Propane Partners LP		7.38		8-1-2021		26,000		28,113
Suburban Propane Partners LP		7.50		10-1-2018		42,000		45,098
Tesoro Corporation		9.75		6-1-2019		90,000		98,100

								4,746,883


Financials : 5.35%

Commercial Banks : 0.40%

CIT Group Incorporated		5.25		3-15-2018		25,000		26,938
CIT Group Incorporated 144A		5.50		2-15-2019		100,000		107,750
CIT Group Incorporated 144A		6.63		4-1-2018		50,000		56,500
Emigrant Bancorp Incorporated 144A		6.25		6-15-2014		275,000		279,125

								470,313


Consumer Finance : 3.13%

Ally Financial Incorporated		5.50		2-15-2017		50,000		54,095
Ally Financial Incorporated		6.75		12-1-2014		36,000		37,845
Ally Financial Incorporated		7.50		9-15-2020		90,000		105,525
Ally Financial Incorporated		8.00		3-15-2020		65,000		78,000
Ally Financial Incorporated		8.30		2-12-2015		825,000		891,000
BMC Software Finance Incorporated		8.13		7-15-2021		45,000		47,700
Clearwire Communications Finance Corporation 144A		12.00		12-1-2015		130,000		133,900
Ford Motor Credit Company LLC		8.00		12-15-2016		25,000		29,717
General Motors Financial Company Incorporated		6.75		6-1-2018		120,000		135,900
Homer City Funding LLC (PIK at 9.23%) ¥		8.73		10-1-2026		149,149		153,251
International Lease Finance Corporation 144A		7.13		9-1-2018		35,000		40,469
International Lease Finance Corporation		8.63		9-15-2015		75,000		83,531
Nielsen Finance LLC		4.50		10-1-2020		15,000		14,588
Nielsen Finance LLC		7.75		10-15-2018		515,000		560,063
SLM Corporation		7.25		1-25-2022		70,000		74,200
SLM Corporation		8.00		3-25-2020		330,000		374,550
SLM Corporation		8.45		6-15-2018		125,000		145,625
Springleaf Finance Corporation 144A		6.00		6-1-2020		175,000		172,375


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Consumer Finance (continued)

Springleaf Finance Corporation		5.40	%	12-1-2015	$	140,000	$	146,825
Springleaf Finance Corporation		5.75		9-15-2016		50,000		52,844
Springleaf Finance Corporation		6.50		9-15-2017		50,000		53,188
Springleaf Finance Corporation		6.90		12-15-2017		243,000		262,440
Springleaf Finance Corporation 144A		7.75		10-1-2021		7,000		7,438

								3,655,069


Diversified Financial Services : 0.58%

Denali Borrower/Finance Corporation 144A		5.63		10-15-2020		315,000		310,275
MPH Intermediate Holding Company (PIK at 9.13%) 144A¥		8.38		8-1-2018		25,000		25,875
Nuveen Investments Incorporated		5.50		9-15-2015		275,000		275,000
Nuveen Investments Incorporated 144A		9.13		10-15-2017		50,000		49,625
Sophia Holding Finance LP (PIK at 9.64%) 144A¥		9.63		12-1-2018		10,000		10,075

								670,850


Insurance : 0.04%
Fidelity & Guaranty Life Holdings Incorporated 144A		6.38		4-1-2021		45,000		46,800


Real Estate Management & Development : 0.36%

Hockey Incorporated 144A		7.88		10-1-2021		230,000		237,763
Onex Corporation 144A		7.75		1-15-2021		175,000		178,938

								416,701


REITs : 0.84%

DuPont Fabros Technology Incorporated 144A		5.88		9-15-2021		340,000		350,200
Omega Healthcare Investors Incorporated		6.75		10-15-2022		125,000		135,938
Sabra Health Care Incorporated		5.38		6-1-2023		50,000		48,750
Sabra Health Care Incorporated		8.13		11-1-2018		98,000		106,085
The Geo Group Incorporated		5.13		4-1-2023		125,000		116,563
The Geo Group Incorporated 144A		5.88		1-15-2022		200,000		200,000
The Geo Group Incorporated		6.63		2-15-2021		20,000		21,200

								978,736


Health Care : 1.50%

Health Care Equipment & Supplies : 0.10%
Hologic Incorporated		6.25		8-1-2020		110,000		116,050


Health Care Providers & Services : 1.34%

Aviv Healthcare Properties LP 144A		6.00		10-15-2021		40,000		41,000
Aviv Healthcare Properties LP		7.75		2-15-2019		100,000		107,500
Capella Healthcare Incorporated		9.25		7-1-2017		65,000		69,713
Centene Corporation		5.75		6-1-2017		75,000		80,063
DaVita HealthCare Partners Incorporated		5.75		8-15-2022		55,000		56,100
DaVita HealthCare Partners Incorporated		6.38		11-1-2018		5,000		5,250
HCA Incorporated		5.88		3-15-2022		25,000		25,938
HCA Incorporated		6.50		2-15-2020		175,000		193,156
HCA Incorporated		7.50		11-15-2095		50,000		44,500
HCA Incorporated		8.50		4-15-2019		275,000		293,906
Health Management Associates Incorporated		6.13		4-15-2016		50,000		55,375
HealthSouth Corporation		5.75		11-1-2024		25,000		24,813
HealthSouth Corporation		7.25		10-1-2018		20,000		21,450
HealthSouth Corporation		8.13		2-15-2020		60,000		66,000
MPT Operating Partnership LP		6.38		2-15-2022		50,000		51,500
MPT Operating Partnership LP		6.88		5-1-2021		125,000		134,063
Multiplan Incorporated 144A		9.88		9-1-2018		165,000		182,325
Select Medical Corporation		6.38		6-1-2021		70,000		67,200
Tenet Healthcare Corporation 144A		6.00		10-1-2020		15,000		15,675


Portfolio of investments — November 30, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Health Care Providers & Services (continued)

Tenet Healthcare Corporation		8.13	%	4-1-2022	$	25,000	$	27,125

								1,562,652


Health Care Technology : 0.03%
Healthcare Technology Intermediate Incorporated (PIK at 8.13%) 144A¥		7.38		9-1-2018		35,000		35,963


Pharmaceuticals : 0.03%
Pinnacle Incorporated 144A		9.50		10-1-2023		35,000		37,363


Industrials : 1.52%

Aerospace & Defense : 0.13%

TransDigm Group Incorporated		5.50		10-15-2020		70,000		69,125
TransDigm Group Incorporated		7.75		12-15-2018		75,000		80,625

								149,750


Air Freight & Logistics : 0.18%
Bristow Group Incorporated		6.25		10-15-2022		195,000		206,213


Airlines : 0.14%

Aviation Capital Group Corporation 144A		6.75		4-6-2021		100,000		108,271
Aviation Capital Group Corporation 144A		7.13		10-15-2020		50,000		55,853

								164,124


Commercial Services & Supplies : 0.38%

ADT Corporation 144A		6.25		10-15-2021		45,000		46,969
Covanta Holding Corporation		6.38		10-1-2022		50,000		51,509
Covanta Holding Corporation		7.25		12-1-2020		10,000		10,921
Iron Mountain Incorporated		5.75		8-15-2024		25,000		23,375
Iron Mountain Incorporated		6.00		8-15-2023		205,000		209,100
Iron Mountain Incorporated		8.38		8-15-2021		99,000		106,920

								448,794


Machinery : 0.25%

Columbus McKinnon Corporation		7.88		2-1-2019		75,000		80,250
H&E Equipment Services Incorporated		7.00		9-1-2022		195,000		213,038

								293,288


Professional Services : 0.14%
Interactive Data Corporation		10.25		8-1-2018		150,000		164,625


Trading Companies & Distributors : 0.22%
Ashtead Capital Incorporated 144A		6.50		7-15-2022		235,000		251,450


Transportation Infrastructure : 0.08%

Florida East Coast Railway Corporation		8.13		2-1-2017		65,000		68,006
Watco Companies LLC 144A		6.38		4-1-2023		30,000		29,925

								97,931


Information Technology : 1.97%

Communications Equipment : 0.18%

Avaya Incorporated		9.75		11-1-2015		50,000		50,000
CyrusOne LP		6.38		11-15-2022		25,000		25,625
Lucent Technologies Incorporated		6.45		3-15-2029		155,000		134,075

								209,700


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2013 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Electronic Equipment, Instruments & Components : 0.64%

CDW Financial Corporation		12.54	%	10-12-2017	$	16,000	$	16,760
Jabil Circuit Incorporated		8.25		3-15-2018		620,000		734,700

								751,460


Internet Software & Services : 0.01%
Verisign Incorporated		4.63		5-1-2023		10,000		9,575


IT Services : 1.05%

Audatex North America Incorporated 144A		6.00		6-15-2021		125,000		130,625
Audatex North America Incorporated 144A		6.13		11-1-2023		30,000		30,975
Fidelity National Information Services Incorporated		7.88		7-15-2020		100,000		109,746
First Data Corporation 144A		7.38		6-15-2019		50,000		53,500
First Data Corporation		11.25		3-31-2016		168,000		170,310
First Data Corporation 144A		11.75		8-15-2021		155,000		160,813
SunGard Data Systems Incorporated		7.38		11-15-2018		515,000		545,256
SunGard Data Systems Incorporated		7.63		11-15-2020		25,000		27,188

								1,228,413


Software : 0.09%

Activision Blizzard Incorporated 144A		5.63		9-15-2021		45,000		46,744
Activision Blizzard Incorporated 144A		6.13		9-15-2023		10,000		10,475
Nuance Communications Incorporated 144A		5.38		8-15-2020		50,000		47,125

								104,344


Materials : 0.44%

Chemicals : 0.06%

Celanese US Holdings LLC		5.88		6-15-2021		20,000		21,350
Chemtura Corporation		5.75		7-15-2021		50,000		50,625

								71,975


Containers & Packaging : 0.23%

Crown Americas LLC		6.25		2-1-2021		20,000		21,600
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		15,000		16,500
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		50,000		46,000
Owens-Illinois Incorporated		7.80		5-15-2018		60,000		69,600
Sealed Air Corporation 144A		6.88		7-15-2033		70,000		65,800
Silgan Holdings Incorporated		5.00		4-1-2020		50,000		49,750

								269,250


Paper & Forest Products : 0.15%
Georgia-Pacific LLC		8.88		5-15-2031		125,000		174,646


Telecommunication Services : 3.96%

Diversified Telecommunication Services : 1.85%

Citizens Communications Company		7.88		1-15-2027		200,000		195,250
Frontier Communications Corporation		8.13		10-1-2018		60,000		69,300
GCI Incorporated		6.75		6-1-2021		170,000		163,200
GCI Incorporated		8.63		11-15-2019		368,000		391,000
Qwest Corporation		7.25		9-15-2025		125,000		133,293
Qwest Corporation		7.63		8-3-2021		20,000		21,200
Syniverse Holdings Incorporated		9.13		1-15-2019		365,000		398,763
TW Telecommunications Holdings Incorporated 144A		5.38		10-1-2022		40,000		39,850
TW Telecommunications Holdings Incorporated		5.38		10-1-2022		445,000		443,331
Windstream Corporation		7.88		11-1-2017		265,000		304,088

								2,159,275


Portfolio of investments — November 30, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Wireless Telecommunication Services : 2.11%

Cricket Communications Incorporated		7.75	%	10-15-2020	$	180,000	$	206,325
Crown Castle International Corporation		5.25		1-15-2023		75,000		74,063
Crown Castle International Corporation		7.13		11-1-2019		10,000		10,829
MetroPCS Wireless Incorporated 144A		6.25		4-1-2021		10,000		10,400
MetroPCS Wireless Incorporated		6.63		11-15-2020		240,000		254,100
MetroPCS Wireless Incorporated 144A		6.63		4-1-2023		35,000		36,050
MetroPCS Wireless Incorporated		7.88		9-1-2018		130,000		140,075
SBA Telecommunications Corporation		5.63		10-1-2019		10,000		10,275
SBA Telecommunications Corporation		5.75		7-15-2020		100,000		104,250
SBA Telecommunications Corporation		8.25		8-15-2019		7,000		7,560
Sprint Capital Corporation		6.88		11-15-2028		1,100,000		1,045,000
Sprint Capital Corporation		8.75		3-15-2032		220,000		236,500
Sprint Corporation 144A		7.25		9-15-2021		10,000		10,825
Sprint Corporation 144A		7.88		9-15-2023		10,000		10,950
Sprint Nextel Corporation 144A		9.00		11-15-2018		25,000		30,250
Sprint Nextel Corporation		11.50		11-15-2021		25,000		32,750
T-Mobile USA Incorporated		6.13		1-15-2022		5,000		5,094
T-Mobile USA Incorporated		6.46		4-28-2019		10,000		10,650
T-Mobile USA Incorporated		6.50		1-15-2024		5,000		5,063
T-Mobile USA Incorporated		6.54		4-28-2020		10,000		10,600
T-Mobile USA Incorporated		6.63		4-28-2021		65,000		68,088
T-Mobile USA Incorporated		6.73		4-28-2022		95,000		99,038
T-Mobile USA Incorporated		6.84		4-28-2023		35,000		36,400

								2,455,135


Utilities : 1.64%

Electric Utilities : 0.90%

Energy Future Intermediate Holding Company LLC 144A		6.88		8-15-2017		25,000		25,625
IPALCO Enterprises Incorporated		5.00		5-1-2018		100,000		105,250
IPALCO Enterprises Incorporated 144A		7.25		4-1-2016		160,000		176,400
Mirant Mid-Atlantic LLC Series C		10.06		12-30-2028		438,432		486,660
Otter Tail Corporation		9.00		12-15-2016		215,000		258,633

								1,052,568


Gas Utilities : 0.24%

AmeriGas Finance LLC		6.50		5-20-2021		5,000		5,300
AmeriGas Finance LLC		6.75		5-20-2020		175,000		190,750
AmeriGas Finance LLC		7.00		5-20-2022		75,000		81,188

								277,238


Independent Power Producers & Energy Traders : 0.50%

Calpine Corporation 144A		6.00		1-15-2022		35,000		35,963
NRG Energy Incorporated		8.50		6-15-2019		185,000		201,188
NSG Holdings LLC 144A		7.75		12-15-2025		245,000		260,925
Reliant Energy Incorporated		9.24		7-2-2017		67,388		69,410
Reliant Energy Incorporated		9.68		7-2-2026		10,000		10,300

								577,786


Total Corporate Bonds and Notes (Cost $31,536,892)								33,134,350


	Dividend yield				Shares

Preferred Stocks : 15.41%

Financials : 0.08%

Diversified Financial Services : 0.08%
GMAC Capital Trust I		8.13				3,457		92,786


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2013 (unaudited)


Security name	Dividend yield				Shares		Value

Telecommunication Services : 1.88%

Diversified Telecommunication Services : 1.88%
Qwest Corporation		7.00	%			90,000	$	2,196,000


Utilities : 13.45%

Electric Utilities : 9.77%

Duke Energy Corporation		5.13				130,000		2,752,100
Entergy Arkansas Incorporated		4.75				15,000		288,300
Entergy Louisiana LLC		4.70				45,483		865,996
Indianapolis Power & Light Company		5.65				20,000		2,004,376
Interstate Power & Light Company		5.10				50,000		1,070,000
SCE Trust I		5.63				23,000		482,310
Southern California Edison		6.50				34,908		3,453,710
Wisconsin Public Service		5.08				4,804		481,751

								11,398,543


Multi-Utilities : 3.68%

DTE Energy Company Series Q		5.25				100,000		2,005,900
Integrys Energy Group		6.00				95,000		2,284,750

								4,290,650


Total Preferred Stocks (Cost $19,698,099)								17,977,979


	Interest rate			Maturity date	Principal

Term Loans ±: 3.27%
Alliance Laundry Systems LLC		9.50		12-10-2019	$	144,122		145,383
Applied Systems Incorporated		8.25		6-8-2017		20,000		20,125
Capital Automotive LP		4.00		4-10-2019		198,596		199,527
Capital Automotive LP		6.00		4-30-2020		110,000		113,300
CBAC Borrower LLC		8.25		7-2-2020		85,000		87,550
CCM Merger Incorporated		5.00		3-1-2017		158,118		158,711
Centaur LLC		8.75		2-20-2020		135,000		137,700
Dell International LLC		4.50		4-29-2020		690,000		682,790
Federal-Mogul Corporation		2.11		12-27-2014		65,520		64,668
Federal-Mogul Corporation		2.11		12-27-2015		36,218		35,747
Focus Brands Incorporated		10.25		8-21-2018		176,935		179,146
Four Seasons Holdings Incorporated		6.25		12-24-2020		25,000		25,594
Learfield Communications Incorporated		8.75		10-9-2021		10,000		10,200
Level 3 Financing Incorporated		4.00		1-15-2020		250,000		251,563
Philadelphia Energy Solutions LLC		6.25		4-4-2018		223,875		199,994
Spin Holdco Incorporated <		4.25		11-14-2019		120,000		120,076
Springleaf Finance Corporation		4.75		9-30-2019		35,000		35,350
Tallgrass Energy Partners LP		5.25		11-13-2018		103,074		103,117
Texas Competitive Electric Holdings LLC		3.73		10-10-2014		1,471,940		1,057,924
TWCC Holdings Corporation		7.00		6-26-2020		15,000		15,356
Vertafore Incorporated <		0.00		10-29-2017		35,000		35,554
W3 Company		9.25		9-13-2020		19,950		20,150
WASH Multifamily Laundry Systems LLC		4.50		2-21-2019		109,450		109,587

Total Term Loans (Cost $4,145,488)								3,809,112


				Expiration date	Shares

Warrants : 0.06%

Utilities : 0.06%

Electric Utilities : 0.00%
China Hydroelectric Company ADR†				1-25-2014		10,000		250


Portfolio of investments — November 30, 2013 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name				Expiration date	Shares		Value

Gas Utilities : 0.06%
Kinder Morgan Incorporated†				5-25-2017		16,000	$	70,400


Total Warrants (Cost $42,480)								70,650


	Interest rate			Maturity date	Principal

Yankee Corporate Bonds and Notes : 1.71%

Consumer Discretionary : 0.04%

Media : 0.04%

Videotron Limited		5.00	%	7-15-2022	$	35,000		34,300
Videotron Limited		9.13		4-15-2018		15,000		15,806

								50,106


Energy : 0.06%

Oil, Gas & Consumable Fuels : 0.06%
Griffin Coal Mining Company Limited (s)144A		9.50		12-1-2016		93,118		74,727


Financials : 0.13%

Consumer Finance : 0.10%
Wind Acquisition Finance SpA 144A		11.75		7-15-2017		110,000		116,875


Diversified Financial Services : 0.03%
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		30,000		30,675


Health Care : 0.13%

Pharmaceuticals : 0.13%

Valeant Pharmaceuticals Company 144A%%		5.63		12-1-2021		5,000		5,025
VPII Escrow Corporation 144A		6.75		8-15-2018		50,000		55,063
VPII Escrow Corporation 144A		7.50		7-15-2021		85,000		93,500

								153,588


Information Technology : 0.31%

Computers & Peripherals : 0.31%

Seagate Technology HDD Holdings 144A		4.75		6-1-2023		150,000		142,500
Seagate Technology HDD Holdings		6.80		10-1-2016		50,000		56,438
Seagate Technology HDD Holdings		6.88		5-1-2020		80,000		87,000
Seagate Technology HDD Holdings		7.00		11-1-2021		65,000		71,988

								357,926


Materials : 0.23%

Metals & Mining : 0.16%

Novelis Incorporated		8.38		12-15-2017		100,000		106,750
Novelis Incorporated		8.75		12-15-2020		75,000		84,000

								190,750


Paper & Forest Products : 0.07%
Sappi Limited 144A		7.50		6-15-2032		100,000		78,000


Telecommunication Services : 0.81%

Diversified Telecommunication Services : 0.77%

Intelsat Bermuda Limited 144A		7.75		6-1-2021		95,000		99,513
Intelsat Bermuda Limited 144A		8.13		6-1-2023		40,000		42,200


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2013 (unaudited)


Security name			Interest rate			Maturity date	Principal		Value

Diversified Telecommunication Services (continued)

Intelsat Jackson Holdings SA 144A				5.50	%	8-1-2023	$	200,000	$	191,500
Intelsat Jackson Holdings SA				7.25		4-1-2019		275,000		297,344
Intelsat Jackson Holdings SA				7.25		10-15-2020		150,000		163,875
Intelsat Jackson Holdings SA				7.50		4-1-2021		50,000		54,938
Intelsat Jackson Holdings SA				8.50		11-1-2019		40,000		43,850

										893,220


Wireless Telecommunication Services : 0.04%
Telesat Canada Incorporated 144A				6.00		5-15-2017		50,000		52,125


Total Yankee Corporate Bonds and Notes (Cost $1,921,994)										1,997,992


			Yield				Shares

Short-Term Investments : 3.37%

Investment Companies : 3.37%

Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##				0.08				3,934,035		3,934,035

Total Short-Term Investments (Cost $3,934,035)										3,934,035


Total investments in securities (Cost $120,889,411)*	118.34	%								138,072,063

Other assets and liabilities, net	(18.34	)								(21,393,090	)


Total net assets	100.00	%							$	116,678,973

(i)

Illiquid security

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

¥	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.

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.

†	Non-income-earning security

(s)

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

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

%%	Security issued on a when-issued basis.

(l)

Investment in an affiliate

(u)

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

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

*	Cost for federal income tax purposes is $121,601,425 and unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	21,313,374
Gross unrealized depreciation		(4,842,736	)

Net unrealized appreciation	$	16,470,638

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

Notes to Portfolio of investments – November 30, 2013 (unaudited)

Securities valuation

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

Equity securities that are listed on a foreign or domestic exchange are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

The values of securities denominated in foreign currencies will be converted to U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day 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 of the Fund 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 November 30, 2013, fair value pricing was not used in pricing foreign securities.

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the 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.

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 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 November 30, 2013, the Fund had unfunded loan commitments of $75,553.

1. 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 November 30, 2013, the inputs used in valuing investments in securities were as follows:


Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Equity securities
Common stocks	$	77,147,945	$	0	$	0	$	77,147,945
Preferred stocks		12,038,142		5,939,837		0		17,977,979
Warrants		0		70,650		0		70,650
Corporate bonds and notes		0		33,134,350		0		33,134,350
Term loans		0		3,281,992		527,120		3,809,112
Yankee corporate bonds and notes		0		1,997,992		0		1,997,992
Short-term investments
Investment companies		3,934,035		0		0		3,934,035

	$	93,120,122	$	44,424,821	$	527,120	$	138,072,063

Transfers in and transfers out are recognized at the end of the reporting period. For the three months ended November 30, 2013, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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

NGN — Nigerian naira

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

RON — Romanian lei

RUB — Russian ruble

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

THB — Thai baht

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: January 28, 2014

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: January 28, 2014

By:		/s/ Nancy Wiser

		Nancy Wiser
		Treasurer

Date: January 28, 2014