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: November 30, 2014

ITEM 1.

INVESTMENTS


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2014 (unaudited)


Security name	Shares		Value

Common Stocks : 67.19%

Energy : 9.05%

Oil, Gas & Consumable Fuels : 9.05%
Energen Corporation		15,000	$	895,800
EQT Corporation		15,000		1,364,700
Spectra Energy Corporation		75,000		2,841,000
The Williams Companies Incorporated		100,000		5,175,000
Veresen Incorporated		75,000		1,180,173
				11,456,673

Industrials : 3.99%

Air Freight & Logistics : 3.94%
Deutsche Post AG		150,000		4,986,219

Construction & Engineering : 0.05%
Ameresco Incorporated Class A †		9,000		69,390

Telecommunication Services : 8.88%

Diversified Telecommunication Services : 5.47%
BCE Incorporated		16,000		750,720
CenturyLink Incorporated		100,000		4,077,000
Verizon Communications Incorporated		41,291		2,088,912
				6,916,632

Wireless Telecommunication Services : 3.41%
Shenandoah Telecommunications Company		40,000		1,185,200
Vodafone Group plc ADR		85,636		3,129,996
				4,315,196

Utilities : 45.27%

Electric Utilities : 31.13%
American Electric Power Company Incorporated		100,000		5,755,000
Chesapeake Utilities Corporation		300		13,479
Duke Energy Corporation		30,514		2,468,583
Edison International		75,000		4,767,000
Endesa SA		80,000		1,547,411
Enel SpA		200,000		965,576
Entergy Corporation		1,000		83,900
Exelon Corporation		16,000		578,720
Great Plains Energy Incorporated		175,000		4,579,750
IDACORP Incorporated		25,000		1,552,750
ITC Holdings Corporation		135,000		5,128,650
NextEra Energy Incorporated		50,000		5,219,500
Northeast Utilities		90,000		4,557,600
Pepco Holdings Incorporated		100		2,750
PNM Resources Incorporated		75,000		2,172,000
				39,392,669

Gas Utilities : 0.86%
New Jersey Resources Corporation		200		11,580
SNAM SpA		200,000		1,061,139
South Jersey Industries Incorporated		200		11,416
				1,084,135

Multi-Utilities : 11.19%
Alliant Energy Corporation		4,000		251,480
CenterPoint Energy Incorporated		50,000		1,197,000


Portfolio of investments — November 30, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name					Shares		Value

Multi-Utilities (continued)
Dominion Resources Incorporated						300	$	21,765
MDU Resources Group Incorporated						500		12,260
Public Service Enterprise Group Incorporated						50,000		2,089,000
Sempra Energy						19,900		2,223,427
Suez Environnement Company SA						275,000		4,879,521
TECO Energy Incorporated						50,000		991,500
Veolia Environnement SA						137,000		2,499,928
								14,165,881

Water Utilities : 2.09%
American Water Works Company Incorporated						50,000		2,652,500

Total Common Stocks (Cost $60,143,814)								85,039,295


	Interest rate			Maturity date	Principal
Corporate Bonds and Notes : 29.22%

Consumer Discretionary : 4.56%

Auto Components : 0.46%
Allison Transmission Incorporated 144A		7.13	%	5-15-2019	$	340,000		357,000
Cooper Tire & Rubber Company		7.63		3-15-2027		190,000		200,450
Goodyear Tire & Rubber Company		7.00		5-15-2022		25,000		27,063
								584,513

Distributors : 0.06%
LKQ Corporation		4.75		5-15-2023		75,000		72,750

Diversified Consumer Services : 0.48%
Service Corporation International		6.75		4-1-2016		100,000		105,250
Service Corporation International		7.00		6-15-2017		25,000		27,188
Service Corporation International		7.50		4-1-2027		351,000		396,630
Service Corporation International		7.63		10-1-2018		25,000		28,063
Service Corporation International		8.00		11-15-2021		40,000		46,900
								604,031

Hotels, Restaurants & Leisure : 1.32%
Burger King Corporation		9.88		10-15-2018		75,000		78,750
CCM Merger Incorporated 144A		9.13		5-1-2019		465,000		499,875
Greektown Holdings LLC 144A		8.88		3-15-2019		565,000		574,888
Hilton Worldwide Finance LLC 144A		5.63		10-15-2021		15,000		15,750
Pinnacle Entertainment Incorporated		7.50		4-15-2021		355,000		375,413
Speedway Motorsports Incorporated		6.75		2-1-2019		120,000		124,800
								1,669,476

Household Durables : 0.14%
American Greetings Corporation		7.38		12-1-2021		150,000		157,875
Tempur Sealy International Incorporated		6.88		12-15-2020		25,000		26,813
								184,688

Media : 1.72%
Cablevision Systems Corporation		8.63		9-15-2017		145,000		164,213
CBS Outdoor Americas Capital LLC 144A		5.25		2-15-2022		15,000		15,375
CBS Outdoor Americas Capital LLC 144A		5.88		3-15-2025		65,000		67,275
CCOH Safari LLC		5.50		12-1-2022		35,000		35,394
CCOH Safari LLC		5.75		12-1-2024		125,000		125,781
Cinemark USA Incorporated		7.38		6-15-2021		75,000		80,156
CSC Holdings LLC		7.63		7-15-2018		45,000		51,019
CSC Holdings LLC		7.88		2-15-2018		75,000		85,031
CSC Holdings LLC		8.63		2-15-2019		125,000		145,469
DISH DBS Corporation 144A		5.88		11-15-2024		15,000		15,113
DISH DBS Corporation		7.88		9-1-2019		115,000		131,388


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Media (continued)
EchoStar DBS Corporation		7.13	%	2-1-2016	$	50,000	$	53,125
Gray Television Incorporated		7.50		10-1-2020		500,000		517,500
Lamar Media Corporation		5.88		2-1-2022		75,000		78,375
LIN Television Corporation		6.38		1-15-2021		25,000		25,625
LIN Television Corporation		8.38		4-15-2018		150,000		156,000
Live Nation Entertainment Incorporated 144A		7.00		9-1-2020		35,000		37,275
National CineMedia LLC		6.00		4-15-2022		155,000		155,388
National CineMedia LLC		7.88		7-15-2021		60,000		63,300
Nexstar Broadcasting Group Incorporated		6.88		11-15-2020		145,000		150,800
Regal Entertainment Group		5.75		6-15-2023		20,000		19,000
								2,172,602

Specialty Retail : 0.38%
ABC Supply Company Incorporated 144A		5.63		4-15-2021		40,000		40,400
Ahern Rentals Incorporated 144A		9.50		6-15-2018		85,000		90,525
Century Intermediate Holding Company (PIK at 10.50%) 144A¥		9.75		2-15-2019		15,000		15,881
Penske Auto Group Incorporated		5.38		12-1-2024		85,000		85,213
Penske Auto Group Incorporated		5.75		10-1-2022		80,000		83,000
Sonic Automotive Incorporated		5.00		5-15-2023		70,000		68,250
Toys “R” Us Property Company II LLC		8.50		12-1-2017		100,000		99,500
								482,769

Consumer Staples : 0.20%

Food Products : 0.20%
B&G Foods Incorporated		4.63		6-1-2021		30,000		28,875
Darling Ingredients Incorporated		5.38		1-15-2022		15,000		15,150
Hearthside Group Holdings LLC 144A		6.50		5-1-2022		10,000		9,875
Prestige Brands Incorporated 144A		5.38		12-15-2021		50,000		49,250
Simmons Foods Incorporated 144A		7.88		10-1-2021		150,000		152,625
								255,775

Energy : 6.14%

Energy Equipment & Services : 2.47%
Bristow Group Incorporated		6.25		10-15-2022		265,000		267,650
Cleaver Brooks Incorporated 144A		8.75		12-15-2019		110,000		118,800
Compressco Partners LP 144A		7.25		8-15-2022		95,000		86,450
Era Group Incorporated		7.75		12-15-2022		334,000		347,360
Forum Energy Technologies Incorporated		6.25		10-1-2021		15,000		15,225
Gulfmark Offshore Incorporated		6.38		3-15-2022		510,000		423,300
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		190,000		155,800
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		275,000		242,000
NGPL PipeCo LLC 144A		7.12		12-15-2017		450,000		465,750
NGPL PipeCo LLC 144A		7.77		12-15-2037		515,000		579,375
NGPL PipeCo LLC 144A		9.63		6-1-2019		35,000		37,538
Northern Tier Energy LLC 144A		7.13		11-15-2020		75,000		78,000
PHI Incorporated		5.25		3-15-2019		325,000		300,625
Pride International Incorporated		8.50		6-15-2019		10,000		12,315
								3,130,188

Oil, Gas & Consumable Fuels : 3.67%
Crestwood Midstream Partners LP		6.00		12-15-2020		76,000		75,620
Crestwood Midstream Partners LP		6.13		3-1-2022		25,000		24,875
CVR Refining LLC		6.50		11-1-2022		68,000		67,830
Denbury Resources Incorporated		4.63		7-15-2023		145,000		119,625
Denbury Resources Incorporated		5.50		5-1-2022		5,000		4,688
Denbury Resources Incorporated		6.38		8-15-2021		25,000		25,125
El Paso LLC		6.50		9-15-2020		45,000		51,272
El Paso LLC		7.00		6-15-2017		50,000		55,938
El Paso LLC (i)		7.42		2-15-2037		90,000		108,450
El Paso LLC		7.80		8-1-2031		100,000		125,322
Energy Transfer Equity LP		7.50		10-15-2020		300,000		344,250


Portfolio of investments — November 30, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Oil, Gas & Consumable Fuels (continued)
Energy XXI Gulf Coast Incorporated 144A		6.88	%	3-15-2024	$	150,000	$	112,500
Energy XXI Gulf Coast Incorporated		7.75		6-15-2019		50,000		40,000
Exterran Partners LP		6.00		4-1-2021		225,000		202,500
Northern Tier Energy LLC		7.13		11-15-2020		140,000		145,600
Overseas Shipholding Group		7.50		2-15-2021		150,000		142,125
Overseas Shipholding Group		8.13		3-30-2018		175,000		177,625
Pioneer Natural Resources Company		7.50		1-15-2020		145,000		174,889
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		260,000		269,100
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		330,000		376,448
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		205,000		242,925
Sabine Pass Liquefaction LLC		5.63		2-1-2021		75,000		76,688
Sabine Pass Liquefaction LLC		5.63		4-15-2023		90,000		91,800
Sabine Pass Liquefaction LLC		5.75		5-15-2024		50,000		50,563
Sabine Pass Liquefaction LLC		6.25		3-15-2022		200,000		212,000
Sabine Pass LNG LP		6.50		11-1-2020		395,000		409,813
Sabine Pass LNG LP		7.50		11-30-2016		370,000		393,125
SemGroup Corporation		7.50		6-15-2021		220,000		234,300
Suburban Propane Partners LP		5.50		6-1-2024		20,000		19,400
Suburban Propane Partners LP		7.38		3-15-2020		60,000		62,400
Suburban Propane Partners LP		7.38		8-1-2021		26,000		27,430
Ultra Petroleum Corporation 144A		5.75		12-15-2018		85,000		82,556
Ultra Petroleum Corporation 144A		6.13		10-1-2024		110,000		100,100
								4,646,882

Financials : 5.43%

Banks : 0.14%
CIT Group Incorporated 144A		5.50		2-15-2019		100,000		106,000
CIT Group Incorporated 144A		6.63		4-1-2018		65,000		70,850
								176,850

Consumer Finance : 2.31%
Ally Financial Incorporated		5.50		2-15-2017		50,000		52,563
Ally Financial Incorporated		6.75		12-1-2014		36,000		36,000
Ally Financial Incorporated		7.50		9-15-2020		72,000		84,420
Ally Financial Incorporated		8.00		3-15-2020		53,000		62,805
Ally Financial Incorporated		8.30		2-12-2015		825,000		835,313
Ford Motor Credit Company LLC		8.00		12-15-2016		25,000		28,208
General Motors Financial Company Incorporated		6.75		6-1-2018		95,000		107,231
Homer City Funding LLC		8.73		10-1-2026		146,599		152,646
Navient Corporation		8.00		3-25-2020		330,000		372,488
SLM Corporation		6.13		3-25-2024		140,000		140,000
SLM Corporation		7.25		1-25-2022		70,000		76,825
SLM Corporation		8.45		6-15-2018		125,000		141,250
Springleaf Finance Corporation		5.40		12-1-2015		140,000		144,200
Springleaf Finance Corporation		5.75		9-15-2016		50,000		52,375
Springleaf Finance Corporation		6.00		6-1-2020		175,000		180,688
Springleaf Finance Corporation		6.50		9-15-2017		50,000		53,750
Springleaf Finance Corporation		6.90		12-15-2017		243,000		265,478
Springleaf Finance Corporation		7.75		10-1-2021		37,000		41,625
Springleaf Finance Corporation		8.25		10-1-2023		85,000		96,900
								2,924,765

Diversified Financial Services : 0.87%
Denali Borrower LLC 144A		5.63		10-15-2020		330,000		346,005
Infinity Acquisition LLC 144A		7.25		8-1-2022		185,000		169,275
Jefferies Finance LLC 144A		6.88		4-15-2022		135,000		126,225
Jefferies Finance LLC 144A		7.38		4-1-2020		245,000		236,425
Jefferies Finance LLC 144A		7.50		4-15-2021		225,000		216,563
								1,094,493

Insurance : 0.18%
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13		7-15-2019		225,000		224,438


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Real Estate Management & Development : 0.35%
Hockey Merger Sub 2 Incorporated 144A		7.88	%	10-1-2021	$	140,000	$	145,250
Onex Corporation 144A		7.75		1-15-2021		300,000		303,750
								449,000

REITs : 1.58%
Crown Castle International Corporation		5.25		1-15-2023		75,000		76,313
DuPont Fabros Technology Incorporated LP		5.88		9-15-2021		340,000		352,750
Iron Mountain Incorporated		5.75		8-15-2024		400,000		405,500
Iron Mountain Incorporated		6.00		8-15-2023		205,000		214,738
Iron Mountain Incorporated		7.75		10-1-2019		30,000		32,175
Iron Mountain Incorporated		8.38		8-15-2021		249,000		258,960
Omega Healthcare Investors Incorporated		6.75		10-15-2022		125,000		132,813
Sabra Health Care Incorporated		5.38		6-1-2023		50,000		51,000
Sabra Health Care Incorporated		5.50		2-1-2021		105,000		109,725
The Geo Group Incorporated		5.13		4-1-2023		100,000		98,000
The Geo Group Incorporated		5.88		1-15-2022		205,000		211,663
The Geo Group Incorporated		5.88		10-15-2024		35,000		35,700
The Geo Group Incorporated		6.63		2-15-2021		20,000		20,900
								2,000,237

Health Care : 2.77%

Health Care Equipment & Supplies : 0.29%
Crimson Merger Sub Incorporated 144A		6.63		5-15-2022		270,000		251,775
Hologic Incorporated		6.25		8-1-2020		110,000		113,919
								365,694

Health Care Providers & Services : 1.70%
Aviv Healthcare Properties LP		6.00		10-15-2021		40,000		42,600
Aviv Healthcare Properties LP		7.75		2-15-2019		150,000		157,500
Capella Healthcare Incorporated		9.25		7-1-2017		330,000		344,197
Centene Corporation		5.75		6-1-2017		75,000		79,313
Community Health Systems Incorporated		6.88		2-1-2022		95,000		100,581
DaVita HealthCare Partners Incorporated		5.75		8-15-2022		55,000		58,094
HCA Incorporated		5.88		3-15-2022		25,000		27,188
HCA Incorporated		6.50		2-15-2020		175,000		193,594
HealthSouth Corporation		5.75		11-1-2024		25,000		26,000
HealthSouth Corporation		8.13		2-15-2020		60,000		62,850
MPH Acquisition Holdings LLC 144A		6.63		4-1-2022		225,000		234,563
MPT Operating Partnership LP		6.38		2-15-2022		70,000		74,900
MPT Operating Partnership LP		6.88		5-1-2021		125,000		133,750
Select Medical Corporation		6.38		6-1-2021		455,000		464,100
Tenet Healthcare Corporation		6.00		10-1-2020		50,000		53,188
Tenet Healthcare Corporation		8.13		4-1-2022		90,000		100,575
								2,152,993

Health Care Technology : 0.40%
Emdeon Incorporated		11.00		12-31-2019		455,000		501,638

Pharmaceuticals : 0.38%
Endo Finance LLC 144A		5.75		1-15-2022		65,000		66,463
Endo Finance LLC 144A		7.25		1-15-2022		160,000		171,200
Par Pharmaceutical Company		7.38		10-15-2020		159,000		167,348
Pinnacle Incorporated 144A		9.50		10-1-2023		21,000		23,048
Salix Pharmaceuticals Incorporated 144A		6.00		1-15-2021		50,000		51,000
								479,059

Industrials : 1.75%

Aerospace & Defense : 0.03%
TransDigm Group Incorporated		5.50		10-15-2020		35,000		34,563


Portfolio of investments — November 30, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Airlines : 0.14%
Aviation Capital Group Corporation 144A		6.75	%	4-6-2021	$	100,000	$	114,000
Aviation Capital Group Corporation 144A		7.13		10-15-2020		50,000		57,707
								171,707

Commercial Services & Supplies : 0.57%
ADT Corporation		4.13		6-15-2023		85,000		77,138
ADT Corporation		6.25		10-15-2021		230,000		240,925
Covanta Holding Corporation		5.88		3-1-2024		80,000		82,000
Covanta Holding Corporation		6.38		10-1-2022		195,000		207,188
Covanta Holding Corporation		7.25		12-1-2020		110,000		116,875
								724,126

Construction & Engineering : 0.18%
AECOM Technology Corporation 144A		5.75		10-15-2022		15,000		15,713
AECOM Technology Corporation 144A		5.88		10-15-2024		200,000		211,500
								227,213

Machinery : 0.22%
Columbus McKinnon Corporation		7.88		2-1-2019		270,000		282,150

Trading Companies & Distributors : 0.57%
Ashtead Capital Incorporated 144A		6.50		7-15-2022		290,000		311,025
H&E Equipment Services Incorporated		7.00		9-1-2022		235,000		249,688
International Lease Finance Corporation 144A		7.13		9-1-2018		35,000		39,725
International Lease Finance Corporation		8.63		9-15-2015		75,000		78,750
Light Tower Rentals Incorporated 144A		8.13		8-1-2019		45,000		40,950
								720,138

Transportation Infrastructure : 0.04%
Watco Companies LLC 144A		6.38		4-1-2023		50,000		50,875

Information Technology : 2.39%

Electronic Equipment, Instruments & Components : 0.68%
Jabil Circuit Incorporated		8.25		3-15-2018		620,000		716,100
Zebra Technologies Corporation 144A		7.25		10-15-2022		135,000		144,281
								860,381

Internet Software & Services : 0.11%
Sophia Holding Finance LP (PIK at 10.38%) 144A¥		9.63		12-1-2018		140,000		143,150

IT Services : 1.15%
Audatex North America Incorporated 144A		6.00		6-15-2021		155,000		160,813
Audatex North America Incorporated 144A		6.13		11-1-2023		60,000		62,250
First Data Corporation 144A		6.75		11-1-2020		52,000		55,380
First Data Corporation 144A		7.38		6-15-2019		110,000		115,775
First Data Corporation		11.75		8-15-2021		300,000		347,250
First Data Holdings Incorporated (PIK at 14.50%) 144A¥		14.50		9-24-2019		284,242		299,875
SunGard Data Systems Incorporated		6.63		11-1-2019		100,000		102,000
SunGard Data Systems Incorporated		7.38		11-15-2018		253,000		263,120
SunGard Data Systems Incorporated		7.63		11-15-2020		50,000		53,250
								1,459,713

Semiconductors & Semiconductor Equipment : 0.10%
Micron Technology Incorporated 144A		5.88		2-15-2022		115,000		121,613

Software : 0.11%
Activision Blizzard Incorporated 144A		5.63		9-15-2021		45,000		48,038
Activision Blizzard Incorporated 144A		6.13		9-15-2023		10,000		10,875


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Software (continued)
BMC Software Finance Incorporated 144A		8.13	%	7-15-2021	$	80,000	$	75,000
								133,913

Technology Hardware, Storage & Peripherals : 0.24%
NCR Corporation		5.88		12-15-2021		15,000		15,300
NCR Corporation		6.38		12-15-2023		283,000		294,320
								309,620

Materials : 0.54%

Chemicals : 0.02%
Celanese US Holdings LLC		5.88		6-15-2021		20,000		21,550

Containers & Packaging : 0.34%
Crown Americas LLC		6.25		2-1-2021		20,000		21,025
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		5,000		5,538
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		50,000		47,750
Owens-Illinois Incorporated		7.80		5-15-2018		60,000		67,200
Sealed Air Corporation 144A		8.38		9-15-2021		215,000		241,875
Silgan Holdings Incorporated		5.00		4-1-2020		50,000		50,875
								434,263

Metals & Mining : 0.03%
Cliffs Natural Resources		6.25		10-1-2040		60,000		38,925

Paper & Forest Products : 0.15%
Georgia-Pacific LLC		8.88		5-15-2031		125,000		192,725

Telecommunication Services : 3.39%

Diversified Telecommunication Services : 1.57%
Citizens Communications Company		7.88		1-15-2027		200,000		204,000
Frontier Communications Corporation		8.13		10-1-2018		60,000		67,500
GCI Incorporated		6.75		6-1-2021		170,000		170,850
GCI Incorporated		8.63		11-15-2019		428,000		447,474
Level 3 Financing Incorporated		8.13		7-1-2019		25,000		26,625
Qwest Corporation		7.25		9-15-2025		125,000		149,039
Qwest Corporation		7.63		8-3-2021		20,000		22,300
Syniverse Holdings Incorporated		9.13		1-15-2019		365,000		381,425
TW Telecommunications Holdings Incorporated		5.38		10-1-2022		169,000		191,393
TW Telecommunications Holdings Incorporated		5.38		10-1-2022		26,000		29,445
Windstream Corporation		7.88		11-1-2017		265,000		292,328
								1,982,379

Wireless Telecommunication Services : 1.82%
MetroPCS Wireless Incorporated		6.63		11-15-2020		240,000		248,400
SBA Telecommunications Corporation		5.63		10-1-2019		10,000		10,350
SBA Telecommunications Corporation		5.75		7-15-2020		100,000		103,000
Sprint Capital Corporation		6.88		11-15-2028		1,100,000		1,031,219
Sprint Capital Corporation		8.75		3-15-2032		105,000		110,381
Sprint Communications Incorporated 144A		9.00		11-15-2018		25,000		28,938
Sprint Communications Incorporated		11.50		11-15-2021		25,000		31,063
Sprint Corporation		7.13		6-15-2024		70,000		69,213
Sprint Corporation		7.25		9-15-2021		10,000		10,200
Sprint Corporation		7.88		9-15-2023		10,000		10,475
T-Mobile USA Incorporated		6.00		3-1-2023		10,000		10,150
T-Mobile USA Incorporated		6.13		1-15-2022		5,000		5,088
T-Mobile USA Incorporated		6.25		4-1-2021		35,000		35,875
T-Mobile USA Incorporated		6.38		3-1-2025		85,000		86,275
T-Mobile USA Incorporated		6.46		4-28-2019		10,000		10,375
T-Mobile USA Incorporated		6.50		1-15-2024		5,000		5,113
T-Mobile USA Incorporated		6.54		4-28-2020		10,000		10,375


Portfolio of investments — November 30, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Wireless Telecommunication Services (continued)
T-Mobile USA Incorporated		6.63	%	4-1-2023	$	35,000	$	36,313
T-Mobile USA Incorporated		6.63		4-28-2021		65,000		66,950
T-Mobile USA Incorporated		6.73		4-28-2022		305,000		315,675
T-Mobile USA Incorporated		6.84		4-28-2023		65,000		67,600
								2,303,028

Utilities : 2.05%

Electric Utilities : 1.40%
ComEd Financing III		6.35		3-15-2033		1,340,000		1,370,150
IPALCO Enterprises Incorporated 144A		7.25		4-1-2016		145,000		154,063
Otter Tail Corporation (i)		9.00		12-15-2016		215,000		245,478
								1,769,691

Gas Utilities : 0.21%
AmeriGas Finance LLC		6.75		5-20-2020		175,000		183,750
AmeriGas Finance LLC		7.00		5-20-2022		75,000		79,125
								262,875

Independent Power & Renewable Electricity Producers : 0.44%
Calpine Corporation 144A		5.88		1-15-2024		20,000		21,250
Calpine Corporation 144A		6.00		1-15-2022		40,000		42,700
Calpine Corporation 144A		7.88		1-15-2023		48,000		53,160
NSG Holdings LLC 144A		7.75		12-15-2025		350,000		378,875
Reliant Energy Incorporated		9.24		7-2-2017		49,955		52,953
Reliant Energy Incorporated		9.68		7-2-2026		10,000		10,800
								559,738

Total Corporate Bonds and Notes (Cost $35,607,750)								36,977,177

Loans : 2.52%
Accellent Incorporated ±		7.50		3-11-2022		25,000		24,229
Alliance Laundry Systems LLC ±		9.50		12-10-2019		159,122		158,923
Applied Systems Incorporated ±		7.50		1-22-2022		25,000		24,969
Asurion LLC ±		8.50		3-3-2021		95,000		95,654
CCM Merger Incorporated ±		4.50		8-8-2021		44,082		44,045
Centaur Acquisition LLC ±		8.75		2-20-2020		135,000		137,025
Focus Brands Incorporated ±		10.25		8-21-2018		176,935		177,156
Four Seasons Holdings Incorporated ±		6.25		12-27-2020		25,000		25,125
HGIM Corporation ±		5.50		6-18-2020		84,361		76,347
Interactive Data Corporation ±		4.50		5-2-2021		139,650		140,244
Learfield Communications Incorporated <%%±		8.75		10-9-2021		212,434		211,372
LM U.S. Corp Acquisition Incorporated ±		8.25		1-25-2021		10,000		9,875
Neff Rental LLC ±		7.25		6-9-2021		49,983		50,170
Peak 10 Incorporated ±		8.25		6-17-2022		30,000		28,950
Philadelphia Energy Solutions LLC ±		6.25		4-4-2018		221,625		209,159
Sedgwick Claims Management Services Incorporated ±		6.75		2-28-2022		45,000		43,950
Spin Holdco Incorporated ±		4.25		11-14-2019		118,902		118,060
Tallgrass Operations LLC ±		4.25		11-13-2018		84,844		84,844
Texas Competitive Electric Holdings Company LLC (s)±		4.65		10-10-2015		1,471,940		1,058,413
TGI Friday’s Incorporated ±		9.25		7-15-2021		45,000		44,325
TWCC Holdings Corporation ±		7.00		6-26-2020		275,000		267,094
Vertafore Incorporated ±		9.75		10-29-2017		35,000		35,000
W3 Company (i)±		9.25		9-13-2020		19,950		19,352
WASH Multifamily Laundry Systems LLC ±		4.50		2-21-2019		108,350		106,725

Total Loans (Cost $3,643,526)								3,191,006


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2014 (unaudited)


Security name	Dividend yield				Shares		Value

Preferred Stocks : 9.23%

Financials : 0.07%

Banks : 0.07%
GMAC Capital Trust I ±		7.68	%			3,457	$	91,403

Utilities : 9.16%

Electric Utilities : 9.16%
Alabama Power Company		6.45				27,104		725,880
Duke Energy Corporation		5.13				130,000		3,222,700
Entergy Arkansas Incorporated		4.75				65,000		1,477,450
Entergy Louisiana LLC		4.70				70,483		1,584,458
Entergy Texas Incorporated		5.63				43,000		1,110,690
Indianapolis Power & Light Company		5.65				20,000		1,984,376
NextEra Energy Capital Holding Incorporated Series I		5.13				44,000		1,009,800
Wisconsin Public Service		5.08				4,804		475,896
								11,591,250

Total Preferred Stocks (Cost $11,087,027)								11,682,653


				Expiration date
Warrants : 0.05%

Utilities : 0.05%

Gas Utilities : 0.05%
Kinder Morgan Incorporated †				5-25-2017		16,000		60,960

Total Warrants (Cost $30,480)								60,960


	Interest rate			Maturity date	Principal
Yankee Corporate Bonds and Notes : 1.88%

Consumer Discretionary : 0.00%

Media : 0.00%
Videotron Limited		9.13		4-15-2018	$	3,000		3,105

Energy : 0.35%

Oil, Gas & Consumable Fuels : 0.35%
Griffin Coal Mining Company Limited 144A(s)		9.50		12-1-2016		93,118		60,178
Teekay Corporation		8.50		1-15-2020		335,000		378,550
								438,728

Financials : 0.02%

Diversified Financial Services : 0.02%
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		30,000		30,825

Health Care : 0.12%

Pharmaceuticals : 0.12%
Valeant Pharmaceuticals International Incorporated 144A		6.75		8-15-2018		50,000		53,438
Valeant Pharmaceuticals International Incorporated 144A		5.63		12-1-2021		5,000		5,050
Valeant Pharmaceuticals International Incorporated 144A		7.50		7-15-2021		85,000		91,800
								150,288

Information Technology : 0.04%

Technology Hardware, Storage & Peripherals : 0.04%
Seagate Technology HDD Holdings		6.80		10-1-2016		50,000		55,284


Portfolio of investments — November 30, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Materials : 0.46%

Containers & Packaging : 0.24%
Ardagh Finance Holdings (PIK at 8.63%) 144A¥		8.63	%	6-15-2019	$	90,000	$	92,700
Ardagh Packaging Finance 144A		9.13		10-15-2020		200,000		215,500
								308,200

Metals & Mining : 0.15%
Novelis Incorporated		8.38		12-15-2017		100,000		104,250
Novelis Incorporated		8.75		12-15-2020		75,000		81,375
								185,625

Paper & Forest Products : 0.07%
Sappi Limited 144A		7.50		6-15-2032		100,000		92,500

Telecommunication Services : 0.89%

Diversified Telecommunication Services : 0.85%
Intelsat Jackson Holdings SA		5.50		8-1-2023		180,000		177,300
Intelsat Jackson Holdings SA		7.25		4-1-2019		240,000		251,100
Intelsat Jackson Holdings SA		7.25		10-15-2020		150,000		159,188
Intelsat Jackson Holdings SA		7.50		4-1-2021		50,000		53,625
Intelsat Luxembourg SA		7.75		6-1-2021		150,000		155,438
Intelsat Luxembourg SA		8.13		6-1-2023		225,000		235,125
Virgin Media Finance plc 144A		5.38		4-15-2021		10,000		10,313
Virgin Media Finance plc 144A		6.38		4-15-2023		25,000		26,625
								1,068,714

Wireless Telecommunication Services : 0.04%
Telesat Canada Incorporated 144A		6.00		5-15-2017		50,000		51,500

Total Yankee Corporate Bonds and Notes (Cost $2,341,312)								2,384,769


Short-Term Investments : 6.91%

	Yield				Shares
Investment Companies : 6.91%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.08				8,739,611		8,739,611

Total Short-Term Investments (Cost $8,739,611)								8,739,611

Total investments in securities (Cost $121,593,520)*		117.00	%					148,075,471
Other assets and liabilities, net		(17.00	)					(21,518,889	)

Total net assets		100.00	%				$	126,556,582

†	Non-income-earning security

144A

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

(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.

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

%%	The security is issued on a when-issued basis.

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

(s)

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

(l)

The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

(u)

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

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


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — November 30, 2014 (unaudited)

*	Cost for federal income tax purposes is $122,051,160 and unrealized gains (losses) consists of:


Gross unrealized gains	$	31,308,779
Gross unrealized losses		(5,284,468	)

Net unrealized gains	$	26,024,311

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

Notes to Portfolio of investments – November 30, 2014 (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 or market 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 are translated into 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 net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On November 30, 2014, such 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.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 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. The values of other assets and liabilities denominated in foreign currencies are translated into 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. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. 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 from 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 included in net realized and unrealized gains or losses from investments.

When-issued transactions

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

Loans

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.

As of November 30, 2014, the Fund had unfunded loan commitments of $90,000.

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.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of November 30, 2014:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Energy	$	11,456,673	$	0	$	0	$	11,456,673
Industrials		5,055,609		0		0		5,055,609
Telecommunication services		11,231,828		0		0		11,231,828
Utilities		57,295,185		0		0		57,295,185
Corporate bonds and notes		0		36,977,177		0		36,977,177
Loans		0		2,419,078		771,928		3,191,006
Preferred stocks
Financials		91,403		0		0		91,403
Utilities		8,405,098		3,186,152		0		11,591,250
Warrants
Utilities		0		60,960		0		60,960
Yankee corporate bonds and notes		0		2,384,769		0		2,384,769
Short-term investments
Investment companies		8,739,611		0		0		8,739,611

Total assets	$	102,275,407	$	45,028,136	$	771,928	$	148,075,471

Transfers in and transfers out are recognized at the end of the reporting period. At November 30, 2014, 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 — Columbian Peso

CLP — Chilean peso

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 — Indonesian rupiah

IEP — Irish pound

JPY — Japanese yen

KRW — Republic of Korea won

LIBOR — London Interbank Offered Rate

LIQ — Liquidity agreement

LLC — Limited liability company

LLLP — Limited liability limited partnership

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

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

(b) There were no significant changes in the Fund’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

SIGNATURES

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


Wells Fargo Advantage Utilities and High Income Fund

By:		/s/ Karla M. Rabusch
		Karla M. Rabusch
		President
Date: January 27, 2015

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 27, 2015


By:		/s/ Nancy Wiser
		Nancy Wiser
		Treasurer
Date: January 27, 2015