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 has an August 31 fiscal year end.

Date of reporting period: May 31, 2014

ITEM 1. INVESTMENTS


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2014 (unaudited)


Security name	Shares		Value
Common Stocks : 64.82%
Consumer Discretionary : 1.95%
Media : 1.95%
Lagardere SCA		71,500	$	2,491,698

Energy : 9.53%
Oil, Gas & Consumable Fuels : 9.53%
Energen Corporation		15,000		1,280,700
EQT Corporation		15,000		1,603,200
Kinder Morgan Incorporated		10,577		353,166
Spectra Energy Corporation		75,000		3,043,500
The Williams Companies Incorporated		100,000		4,696,000
Veresen Incorporated		75,000		1,176,566
				12,153,132

Industrials : 4.41%
Air Freight & Logistics : 4.36%
Deutsche Post AG		150,000		5,563,697

Construction & Engineering : 0.05%
Ameresco Incorporated Class A †		9,000		58,950

Telecommunication Services : 8.36%
Diversified Telecommunication Services : 5.15%
BCE Incorporated		16,000		734,880
CenturyLink Incorporated		100,000		3,767,000
Verizon Communications Incorporated		41,291		2,062,898
				6,564,778

Wireless Telecommunication Services : 3.21%
Shenandoah Telecommunications Company		40,000		1,104,400
Vodafone Group plc ADR		85,636		2,998,116
				4,102,516

Utilities : 40.57%
Electric Utilities : 27.21%
American Electric Power Company Incorporated		100,000		5,335,000
Chesapeake Utilities Corporation		200		13,082
Duke Energy Corporation		30,514		2,168,935
Edison International		75,000		4,135,500
Enel SpA		200,000		1,131,960
Entergy Corporation		1,000		75,420
Great Plains Energy Incorporated		175,000		4,453,750
IDACORP Incorporated		25,000		1,370,750
ITC Holdings Corporation		135,000		4,941,000
NextEra Energy Incorporated		50,000		4,868,000
Northeast Utilities		90,000		4,086,000
Pepco Holdings Incorporated		100		2,770
PNM Resources Incorporated		75,000		2,134,500
				34,716,667

Gas Utilities : 0.94%
New Jersey Resources Corporation		200		11,002
Snam Rete Gas SpA		200,000		1,173,945


Portfolio of investments — May 31, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name						Shares		Value
Gas Utilities (continued)
South Jersey Industries Incorporated							200	$	11,504
									1,196,451

Multi-Utilities : 10.51%
CenterPoint Energy Incorporated							50,000		1,206,000
Dominion Resources Incorporated							300		20,688
MDU Resources Group Incorporated							500		16,940
Public Service Enterprise Group Incorporated							50,000		1,948,000
Sempra Energy							19,900		1,996,965
Suez Environnement Company SA							275,000		5,525,528
Veolia Environnement SA							137,000		2,618,257
Wisconsin Energy Corporation							1,600		72,832
									13,405,210

Water Utilities : 1.91%
American Water Works Company Incorporated							50,000		2,430,500

Total Common Stocks (Cost $58,617,550)									82,683,599


	Interest rate			Maturity date		Principal
Corporate Bonds and Notes : 28.08%
Consumer Discretionary : 5.34%
Auto Components : 0.47%
Allison Transmission Incorporated 144A		7.13	%		5-15-2019	$	340,000		364,650
Cooper Tire & Rubber Company		7.63			3-15-2027		200,000		208,000
Goodyear Tire & Rubber Company		7.00			5-15-2022		25,000		27,875
									600,525

Distributors : 0.06%
LKQ Corporation		4.75			5-15-2023		75,000		73,313

Diversified Consumer Services : 0.54%
Ceridian HCM Holding Incorporated 144A		11.00			3-15-2021		10,000		11,525
Service Corporation International		6.75			4-1-2016		100,000		108,375
Service Corporation International		7.00			6-15-2017		25,000		28,095
Service Corporation International		7.50			4-1-2027		351,000		380,835
Service Corporation International		7.63			10-1-2018		25,000		29,095
Service Corporation International		8.00			11-15-2021		40,000		46,452
Sotheby’s 144A		5.25			10-1-2022		95,000		91,200
									695,577

Hotels, Restaurants & Leisure : 1.74%
Burger King Corporation		9.88			10-15-2018		75,000		80,813
CCM Merger Incorporated 144A		9.13			5-1-2019		465,000		497,550
CEC Entertainment Incorporated 144A		8.00			2-15-2022		75,000		76,125
DineEquity Incorporated		9.50			10-30-2018		350,000		377,563
Greektown Holdings LLC 144A		8.88			3-15-2019		480,000		492,000
Hilton Worldwide Finance LLC 144A		5.63			10-15-2021		15,000		15,863
Pinnacle Entertainment Incorporated		7.50			4-15-2021		355,000		383,844
Ruby Tuesday Incorporated		7.63			5-15-2020		110,000		109,725
Scientific Games Corporation		9.25			6-15-2019		60,000		63,075
Speedway Motorsports Incorporated		6.75			2-1-2019		120,000		127,200
									2,223,758

Household Durables : 0.10%
American Greetings Corporation		7.38			12-1-2021		90,000		95,400


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2014 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value
Household Durables (continued)
Tempur Sealy International Incorporated		6.88	%	12-15-2020	$	25,000	$	27,375
								122,775

Media : 1.98%
Allbritton Communications Company		8.00		5-15-2018		150,000		156,563
Cablevision Systems Corporation		8.63		9-15-2017		145,000		169,650
CBS Outdoor Americas Capital LLC 144A		5.25		2-15-2022		15,000		15,375
Cinemark USA Incorporated		7.38		6-15-2021		75,000		82,969
CSC Holdings LLC		7.63		7-15-2018		45,000		52,088
CSC Holdings LLC		7.88		2-15-2018		75,000		86,625
CSC Holdings LLC		8.63		2-15-2019		125,000		149,063
DISH DBS Corporation		7.88		9-1-2019		115,000		136,850
DreamWorks Animation SKG Incorporated 144A		6.88		8-15-2020		170,000		183,600
EchoStar DBS Corporation		7.13		2-1-2016		50,000		54,500
Gray Television Incorporated		7.50		10-1-2020		420,000		450,450
Lamar Media Corporation		5.88		2-1-2022		75,000		80,438
LIN Television Corporation		6.38		1-15-2021		25,000		26,250
LIN Television Corporation		8.38		4-15-2018		150,000		158,438
Live Nation Entertainment Incorporated 144A		7.00		9-1-2020		15,000		16,388
Lynx II Corporation 144A		6.38		4-15-2023		25,000		26,375
National CineMedia LLC		6.00		4-15-2022		170,000		177,650
National CineMedia LLC		7.88		7-15-2021		50,000		54,875
Nexstar Broadcasting Group Incorporated		6.88		11-15-2020		145,000		154,788
Regal Entertainment Group		5.75		6-15-2023		30,000		30,675
Regal Entertainment Group		5.75		3-15-2022		250,000		258,125
								2,521,735

Specialty Retail : 0.45%
ABC Supply Company Incorporated 144A		5.63		4-15-2021		40,000		41,400
Ahern Rentals Incorporated 144A		9.50		6-15-2018		85,000		94,138
Century Intermediate Holding Company (PIK at 9.75%) 144A¥		9.75		2-15-2019		15,000		16,013
Neiman Marcus Group Limited 144A		8.00		10-15-2021		15,000		16,500
Penske Auto Group Incorporated		5.75		10-1-2022		80,000		83,700
Rent-A-Center Incorporated		6.63		11-15-2020		140,000		145,950
Sonic Automotive Incorporated		5.00		5-15-2023		70,000		69,125
Toys “R” Us Property Company II LLC		8.50		12-1-2017		100,000		102,000
								568,826

Consumer Staples : 0.13%
Food Products : 0.13%
Darling International Incorporated 144A		5.38		1-15-2022		15,000		15,600
Hearthside Group Holdings LLC 144A		6.50		5-1-2022		10,000		10,075
Simmons Foods Incorporated 144A		10.50		11-1-2017		135,000		145,800
								171,475

Energy : 5.56%
Energy Equipment & Services : 1.92%
Bristow Group Incorporated		6.25		10-15-2022		265,000		285,538
Cleaver Brooks Incorporated 144A		8.75		12-15-2019		25,000		27,813
Dresser-Rand Group Incorporated		6.50		5-1-2021		90,000		96,300
Era Group Incorporated		7.75		12-15-2022		204,000		215,730
Forum Energy Technologies Incorporated 144A		6.25		10-1-2021		15,000		15,938
Gulfmark Offshore Incorporated		6.38		3-15-2022		430,000		447,200
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		190,000		186,675
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		40,000		41,600
NGPL PipeCo LLC 144A		7.12		12-15-2017		265,000		265,000
NGPL PipeCo LLC 144A		7.77		12-15-2037		515,000		486,675
NGPL PipeCo LLC 144A		9.63		6-1-2019		35,000		37,975


Portfolio of investments — May 31, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Energy Equipment & Services (continued)
PHI Incorporated 144A		5.25	%		3-15-2019	$	325,000	$	330,688
Pride International Incorporated		8.50			6-15-2019		10,000		12,755
									2,449,887

Oil, Gas & Consumable Fuels : 3.64%
Crestwood Midstream Partners LP		6.00			12-15-2020		76,000		79,230
Crestwood Midstream Partners LP 144A		6.13			3-1-2022		25,000		26,188
CVR Refining LLC		6.50			11-1-2022		68,000		71,485
Denbury Resources Incorporated		4.63			7-15-2023		45,000		43,313
Denbury Resources Incorporated		6.38			8-15-2021		25,000		26,875
El Paso LLC		6.50			9-15-2020		45,000		49,824
El Paso LLC		7.00			6-15-2017		75,000		84,450
El Paso LLC		7.25			6-1-2018		175,000		199,118
El Paso LLC		7.42			2-15-2037		90,000		90,113
El Paso LLC		7.80			8-1-2031		100,000		108,250
Energy Transfer Equity LP		7.50			10-15-2020		300,000		346,500
Exterran Partners LP		6.00			4-1-2021		225,000		228,375
Kinder Morgan Finance Company LLC 144A		6.00			1-15-2018		25,000		27,398
Murphy Oil USA Incorporated 144A		6.00			8-15-2023		30,000		31,200
Northern Tier Energy LLC		7.13			11-15-2020		140,000		150,500
Pioneer Natural Resources Company		7.50			1-15-2020		145,000		180,094
Plains Exploration & Production Company		8.63			10-15-2019		325,000		348,563
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		260,000		259,350
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		435,000		408,900
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		205,000		199,875
Sabine Pass Liquefaction LLC		5.63			2-1-2021		75,000		78,563
Sabine Pass Liquefaction LLC		5.63			4-15-2023		90,000		92,475
Sabine Pass Liquefaction LLC 144A		5.75			5-15-2024		50,000		51,375
Sabine Pass Liquefaction LLC 144A		6.25			3-15-2022		200,000		214,750
Sabine Pass LNG LP		6.50			11-1-2020		395,000		421,663
Sabine Pass LNG LP		7.50			11-30-2016		370,000		409,775
SemGroup Corporation		7.50			6-15-2021		220,000		237,050
Suburban Propane Partners LP		7.38			3-15-2020		60,000		64,125
Suburban Propane Partners LP		7.38			8-1-2021		26,000		28,600
Ultra Petroleum Corporation 144A		5.75			12-15-2018		85,000		89,675
									4,647,652

Financials : 4.66%
Banks : 0.93%
CIT Group Incorporated 144A		5.50			2-15-2019		100,000		108,000
CIT Group Incorporated 144A		6.63			4-1-2018		50,000		55,875
Emigrant Bancorp Incorporated 144A		6.25			6-15-2014		275,000		275,390
Nielsen Finance LLC		7.75			10-15-2018		381,000		403,384
Nuveen Investments Incorporated		5.50			9-15-2015		275,000		283,938
Nuveen Investments Incorporated 144A		9.13			10-15-2017		50,000		54,250
									1,180,837

Consumer Finance : 2.24%
Ally Financial Incorporated		5.50			2-15-2017		50,000		54,313
Ally Financial Incorporated		6.75			12-1-2014		36,000		36,990
Ally Financial Incorporated		7.50			9-15-2020		90,000		107,325
Ally Financial Incorporated		8.00			3-15-2020		65,000		78,813
Ally Financial Incorporated		8.30			2-12-2015		825,000		864,150
Ford Motor Credit Company LLC		8.00			12-15-2016		25,000		29,140
General Motors Financial Company Incorporated		6.75			6-1-2018		95,000		108,181
Homer City Funding LLC (PIK at 9.23%) ¥		8.73			10-1-2026		149,149		159,403
SLM Corporation		6.13			3-25-2024		90,000		90,450
SLM Corporation		7.25			1-25-2022		70,000		77,350
SLM Corporation		8.00			3-25-2020		330,000		381,150
SLM Corporation		8.45			6-15-2018		125,000		147,188


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2014 (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		53,063
Springleaf Finance Corporation		6.00			6-1-2020		175,000		177,625
Springleaf Finance Corporation		6.50			9-15-2017		50,000		53,875
Springleaf Finance Corporation		6.90			12-15-2017		243,000		266,085
Springleaf Finance Corporation		7.75			10-1-2021		22,000		24,585
									2,856,511

Diversified Financial Services : 0.27%
Denali Borrower LLC 144A		5.63			10-15-2020		330,000		344,438

Real Estate Management & Development : 0.42%
Hockey Merger Sub 2 Incorporated 144A		7.88			10-1-2021		240,000		257,400
Onex Corporation 144A		7.75			1-15-2021		270,000		278,100
									535,500

REITs : 0.80%
Crown Castle International Corporation		5.25			1-15-2023		75,000		78,000
DuPont Fabros Technology Incorporated LP		5.88			9-15-2021		340,000		351,900
Omega Healthcare Investors Incorporated		6.75			10-15-2022		125,000		135,313
Sabra Health Care Incorporated		5.38			6-1-2023		50,000		51,250
Sabra Health Care Incorporated		5.50			2-1-2021		55,000		57,750
The Geo Group Incorporated		5.13			4-1-2023		125,000		124,063
The Geo Group Incorporated		5.88			1-15-2022		200,000		207,000
The Geo Group Incorporated		6.63			2-15-2021		20,000		21,450
									1,026,726

Health Care : 2.05%
Health Care Equipment & Supplies : 0.20%
Crimson Merger Sub Incorporated 144A		6.63			5-15-2022		140,000		138,950
Hologic Incorporated		6.25			8-1-2020		110,000		116,875
									255,825

Health Care Providers & Services : 1.31%
Aviv Healthcare Properties LP		6.00			10-15-2021		40,000		42,200
Aviv Healthcare Properties LP		7.75			2-15-2019		100,000		106,750
Capella Healthcare Incorporated		9.25			7-1-2017		65,000		68,169
Centene Corporation		5.75			6-1-2017		75,000		81,375
Community Health Systems Incorporated 144A		6.88			2-1-2022		95,000		99,988
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		55,000		58,919
DaVita HealthCare Partners Incorporated		6.38			11-1-2018		5,000		5,250
HCA Incorporated		5.88			3-15-2022		25,000		27,219
HCA Incorporated		6.50			2-15-2020		175,000		198,844
HealthSouth Corporation		5.75			11-1-2024		25,000		26,375
HealthSouth Corporation		7.25			10-1-2018		20,000		21,025
HealthSouth Corporation		8.13			2-15-2020		60,000		64,650
MPH Acquisition Holdings LLC 144A		6.63			4-1-2022		30,000		31,125
MPT Operating Partnership LP		6.38			2-15-2022		70,000		75,075
MPT Operating Partnership LP		6.88			5-1-2021		125,000		136,250
Select Medical Corporation		6.38			6-1-2021		345,000		359,663
Select Medical Corporation 144A		6.38			6-1-2021		110,000		114,675
Tenet Healthcare Corporation		6.00			10-1-2020		50,000		53,750
Tenet Healthcare Corporation		8.13			4-1-2022		90,000		102,375
									1,673,677

Health Care Technology : 0.23%
Emdeon Incorporated		11.00			12-31-2019		255,000		293,888


Portfolio of investments — May 31, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Pharmaceuticals : 0.31%
Endo Finance Company 144A		5.75	%		1-15-2022	$	65,000	$	66,625
Par Pharmaceutical Company		7.38			10-15-2020		159,000		172,515
Pinnacle Incorporated 144A		9.50			10-1-2023		35,000		38,850
Salix Pharmaceuticals Incorporated 144A		6.00			1-15-2021		100,000		107,250
Valeant Pharmaceuticals International Incorporated 144A		5.63			12-1-2021		5,000		5,188
									390,428

Industrials : 1.88%
Aerospace & Defense : 0.13%
TransDigm Group Incorporated		5.50			10-15-2020		65,000		65,325
TransDigm Group Incorporated 144A%%		6.00			7-15-2022		10,000		10,075
TransDigm Group Incorporated 144A%%		6.50			7-15-2024		10,000		10,150
TransDigm Group Incorporated		7.75			12-15-2018		75,000		80,625
									166,175

Airlines : 0.13%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		100,000		111,595
Aviation Capital Group Corporation 144A		7.13			10-15-2020		50,000		56,550
									168,145

Commercial Services & Supplies : 0.95%
ADT Corporation		4.13			6-15-2023		85,000		79,475
ADT Corporation		6.25			10-15-2021		55,000		57,888
Covanta Holding Corporation		5.88			3-1-2024		80,000		82,000
Covanta Holding Corporation		6.38			10-1-2022		195,000		209,869
Covanta Holding Corporation		7.25			12-1-2020		105,000		114,844
Iron Mountain Incorporated		5.75			8-15-2024		315,000		315,000
Iron Mountain Incorporated		6.00			8-15-2023		205,000		217,813
Iron Mountain Incorporated		7.75			10-1-2019		30,000		32,925
Iron Mountain Incorporated		8.38			8-15-2021		99,000		104,198
									1,214,012

Machinery : 0.06%
Columbus McKinnon Corporation		7.88			2-1-2019		75,000		80,156

Trading Companies & Distributors : 0.55%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		290,000		316,100
H&E Equipment Services Incorporated		7.00			9-1-2022		235,000		258,500
International Lease Finance Corporation 144A		7.13			9-1-2018		35,000		40,513
International Lease Finance Corporation		8.63			9-15-2015		75,000		81,758
									696,871

Transportation Infrastructure : 0.06%
Watco Companies LLC 144A		6.38			4-1-2023		70,000		71,400

Information Technology : 2.01%
Communications Equipment : 0.14%
CyrusOne LP		6.38			11-15-2022		25,000		26,563
Lucent Technologies Incorporated		6.45			3-15-2029		155,000		151,513
									178,076

Electronic Equipment, Instruments & Components : 0.58%
Jabil Circuit Incorporated		8.25			3-15-2018		620,000		737,800


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2014 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Internet Software & Services : 0.01%
Sophia Holding Finance LP (PIK at 9.63%) 144A¥		9.63	%		12-1-2018	$	10,000	$	10,400

IT Services : 0.84%
Audatex North America Incorporated 144A		6.00			6-15-2021		125,000		133,125
Audatex North America Incorporated 144A		6.13			11-1-2023		30,000		32,138
Fidelity National Information Services Incorporated		7.88			7-15-2020		100,000		106,600
First Data Corporation 144A		6.75			11-1-2020		80,000		85,900
First Data Corporation 144A		7.38			6-15-2019		50,000		53,625
First Data Corporation 144A		11.75			8-15-2021		170,000		188,700
First Data Holdings Incorporated (PIK at 14.50%) 144A¥		14.50			9-24-2019		68,115		68,456
SunGard Data Systems Incorporated		6.63			11-1-2019		100,000		105,750
SunGard Data Systems Incorporated		7.38			11-15-2018		253,000		267,864
SunGard Data Systems Incorporated		7.63			11-15-2020		25,000		27,406
									1,069,564

Semiconductors & Semiconductor Equipment : 0.10%
Micron Technology Incorporated 144A		5.88			2-15-2022		115,000		122,763

Software : 0.12%
Activision Blizzard Incorporated 144A		5.63			9-15-2021		45,000		48,488
Activision Blizzard Incorporated 144A		6.13			9-15-2023		10,000		11,025
BMC Software Finance Incorporated 144A		8.13			7-15-2021		45,000		47,363
Nuance Communications Incorporated 144A		5.38			8-15-2020		50,000		50,875
									157,751

Technology Hardware, Storage & Peripherals : 0.22%
NCR Corporation 144A		5.88			12-15-2021		15,000		15,825
NCR Corporation 144A		6.38			12-15-2023		250,000		269,375
									285,200

Materials : 0.51%
Chemicals : 0.02%
Celanese US Holdings LLC		5.88			6-15-2021		20,000		22,075

Containers & Packaging : 0.34%
Crown Americas LLC		6.25			2-1-2021		20,000		21,500
Crown Cork & Seal Company Incorporated		7.38			12-15-2026		5,000		5,594
Crown Cork & Seal Company Incorporated (i)		7.50			12-15-2096		50,000		47,500
Owens-Illinois Incorporated		7.80			5-15-2018		60,000		69,750
Sealed Air Corporation 144A		8.38			9-15-2021		215,000		246,175
Silgan Holdings Incorporated		5.00			4-1-2020		50,000		51,500
									442,019

Paper & Forest Products : 0.15%
Georgia-Pacific LLC		8.88			5-15-2031		125,000		187,143

Telecommunication Services : 3.64%
Diversified Telecommunication Services : 1.58%
Citizens Communications Company		7.88			1-15-2027		200,000		204,500
Frontier Communications Corporation		8.13			10-1-2018		60,000		69,975
GCI Incorporated		6.75			6-1-2021		170,000		172,550
GCI Incorporated		8.63			11-15-2019		368,000		391,920
Qwest Corporation		7.25			9-15-2025		125,000		144,640
Qwest Corporation		7.63			8-3-2021		20,000		22,600
Syniverse Holdings Incorporated		9.13			1-15-2019		365,000		394,200
TW Telecommunications Holdings Incorporated		5.38			10-1-2022		260,000		265,525
TW Telecommunications Holdings Incorporated		5.38			10-1-2022		40,000		40,850


Portfolio of investments — May 31, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name	Interest rate			Maturity date		Principal		Value
Diversified Telecommunication Services (continued)
Windstream Corporation		7.88	%		11-1-2017	$	265,000	$	305,413
									2,012,173

Wireless Telecommunication Services : 2.06%
MetroPCS Wireless Incorporated		6.63			11-15-2020		240,000		255,600
MetroPCS Wireless Incorporated		7.88			9-1-2018		130,000		136,988
SBA Telecommunications Corporation		5.63			10-1-2019		10,000		10,563
SBA Telecommunications Corporation		5.75			7-15-2020		100,000		105,500
SBA Telecommunications Corporation		8.25			8-15-2019		7,000		7,368
Sprint Capital Corporation		6.88			11-15-2028		1,100,000		1,127,500
Sprint Capital Corporation		8.75			3-15-2032		105,000		121,538
Sprint Communications Incorporated		7.00			8-15-2020		120,000		132,300
Sprint Communications Incorporated 144A		9.00			11-15-2018		25,000		30,375
Sprint Communications Incorporated		11.50			11-15-2021		25,000		34,000
Sprint Corporation 144A		7.13			6-15-2024		70,000		75,425
Sprint Corporation 144A		7.25			9-15-2021		10,000		11,075
Sprint Corporation 144A		7.88			9-15-2023		10,000		11,300
T-Mobile USA Incorporated		6.13			1-15-2022		5,000		5,300
T-Mobile USA Incorporated		6.25			4-1-2021		35,000		37,188
T-Mobile USA Incorporated		6.46			4-28-2019		10,000		10,588
T-Mobile USA Incorporated		6.50			1-15-2024		5,000		5,313
T-Mobile USA Incorporated		6.54			4-28-2020		10,000		10,800
T-Mobile USA Incorporated		6.63			4-1-2023		35,000		37,800
T-Mobile USA Incorporated		6.63			4-28-2021		65,000		70,038
T-Mobile USA Incorporated		6.73			4-28-2022		305,000		329,400
T-Mobile USA Incorporated		6.84			4-28-2023		65,000		70,525
									2,636,484

Utilities : 2.30%
Electric Utilities : 1.77%
ComEd Financing III		6.35			3-15-2033		1,340,000		1,333,300
Energy Future Intermediate Holding Company LLC 144A(s)		6.88			8-15-2017		25,000		25,750
IPALCO Enterprises Incorporated 144A		7.25			4-1-2016		145,000		158,050
Mirant Mid-Atlantic LLC Series C		10.06			12-30-2028		438,432		495,429
Otter Tail Corporation (i)		9.00			12-15-2016		215,000		250,593
									2,263,122

Gas Utilities : 0.22%
AmeriGas Finance LLC		6.50			5-20-2021		5,000		5,388
AmeriGas Finance LLC		6.75			5-20-2020		175,000		190,750
AmeriGas Finance LLC		7.00			5-20-2022		75,000		82,875
									279,013

Independent Power & Renewable Electricity Producers : 0.31%
Calpine Corporation 144A		6.00			1-15-2022		40,000		42,900
NSG Holdings LLC 144A		7.75			12-15-2025		245,000		265,213
Reliant Energy Incorporated		9.24			7-2-2017		67,388		69,747
Reliant Energy Incorporated		9.68			7-2-2026		10,000		10,900
									388,760

Total Corporate Bonds and Notes (Cost $33,668,722)									35,822,455


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2014 (unaudited)


Security name	Dividend yield					Shares		Value
Preferred Stocks : 13.36%
Financials : 0.07%
Banks : 0.07%
GMAC Capital Trust I ±		8.13	%				3,457	$	93,754

Telecommunication Services : 1.85%
Diversified Telecommunication Services : 1.85%
Qwest Corporation		7.00					90,000		2,357,100

Utilities : 11.44%
Electric Utilities : 7.71%
Duke Energy Corporation		5.13					130,000		3,121,300
Entergy Arkansas Incorporated		4.75					65,000		1,439,100
Entergy Louisiana LLC		4.70					70,483		1,564,723
Indianapolis Power & Light Company		5.65					20,000		2,001,876
Interstate Power & Light Company		5.10					50,000		1,235,000
Wisconsin Public Service		5.08					4,804		476,947
									9,838,946

Multi-Utilities : 3.73%
DTE Energy Company Series Q		5.25					100,000		2,283,000
Integrys Energy Group ±		6.00					95,000		2,475,700
									4,758,700

Total Preferred Stocks (Cost $16,819,088)									17,048,500


	Interest rate			Maturity date		Principal
Loans ±: 3.28%
Accellent Incorporated		7.50			3-11-2022	$	45,000		44,700
Alliance Laundry Systems LLC		9.50			12-10-2019		159,122		161,111
Applied Systems Incorporated		7.50			1-22-2022		25,000		25,413
Asurion LLC		8.50			3-3-2021		95,000		97,494
Capital Automotive LP		4.00			4-10-2019		196,273		196,666
Capital Automotive LP		6.00			4-30-2020		110,000		111,925
CBAC Borrower LLC		8.25			7-2-2020		85,000		87,975
CCM Merger Incorporated		5.00			3-1-2017		157,160		157,487
Centaur Acquisition LLC		8.75			2-20-2020		135,000		136,350
Dell Incorporated		4.50			4-29-2020		601,975		600,530
Focus Brands Incorporated		10.25			8-21-2018		176,935		179,146
Four Seasons Holdings Incorporated		6.25			12-24-2020		25,000		25,313
HGIM Corporation		5.50			6-18-2020		84,787		83,445
Learfield Communications Incorporated		8.75			10-9-2021		15,000		15,244
Level 3 Financing Incorporated		4.00			1-15-2020		250,000		250,375
Neff Rental <		0.00			5-21-2021		60,000		59,663
Philadelphia Energy Solutions LLC		6.25			4-4-2018		222,750		200,894
Sedgwick Incorporated		6.75			2-28-2022		45,000		44,791
Spin Holdco Incorporated		4.25			11-14-2019		119,501		119,291
Tallgrass Operations LLC		4.25			11-13-2018		103,074		103,546
Texas Competitive Electric Holdings LLC (s)		0.00			10-10-2014		1,471,940		1,173,342
TWCC Holdings Corporation		7.00			6-26-2020		150,000		148,437
Vertafore Incorporated		9.75			10-29-2017		35,000		35,700
W3 Company		9.25			9-13-2020		19,950		19,950
WASH Multifamily Laundry Systems LLC		4.50			2-21-2019		108,900		108,628
Total Loans (Cost $4,465,342)									4,187,416


Portfolio of investments — May 31, 2014 (unaudited)		Wells Fargo Advantage Utilities and High Income Fund


Security name				Expiration date		Shares		Value
Warrants : 0.03%
Utilities : 0.03%
Gas Utilities : 0.03%
Kinder Morgan Incorporated †					5-25-2017		16,000	$	36,640

Total Warrants (Cost $30,480)									36,640


	Interest rate			Maturity date		Principal
Yankee Corporate Bonds and Notes : 1.44%
Consumer Discretionary : 0.00%
Media : 0.00%
Videotron Limited		9.13	%		4-15-2018	$	3,000		3,105

Energy : 0.19%
Oil, Gas & Consumable Fuels : 0.19%
Griffin Coal Mining Company Limited 144A(s)		9.50			12-1-2016		93,118		70,770
Teekay Corporation		8.50			1-15-2020		146,000		168,813
									239,583

Financials : 0.02%
Banks : 0.02%
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		30,000		31,163

Health Care : 0.12%
Pharmaceuticals : 0.12%
Valeant Pharmaceuticals International Incorporated 144A		6.75			8-15-2018		50,000		54,000
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		85,000		94,350
									148,350

Information Technology : 0.11%
Technology Hardware, Storage & Peripherals : 0.11%
Seagate Technology HDD Holdings		6.80			10-1-2016		50,000		56,000
Seagate Technology HDD Holdings		6.88			5-1-2020		80,000		86,800
									142,800

Materials : 0.21%
Metals & Mining : 0.15%
Novelis Incorporated		8.38			12-15-2017		100,000		106,750
Novelis Incorporated		8.75			12-15-2020		75,000		83,344
									190,094

Paper & Forest Products : 0.06%
Sappi Limited 144A		7.50			6-15-2032		100,000		84,500

Telecommunication Services : 0.79%
Diversified Telecommunication Services : 0.75%
Intelsat Jackson Holdings SA		5.50			8-1-2023		210,000		208,950
Intelsat Jackson Holdings SA		6.63			12-15-2022		55,000		57,338
Intelsat Jackson Holdings SA		7.25			4-1-2019		240,000		256,500
Intelsat Jackson Holdings SA		7.25			10-15-2020		150,000		162,000


Wells Fargo Advantage Utilities and High Income Fund		Portfolio of investments — May 31, 2014 (unaudited)


Security name	Interest rate			Maturity date		Principal		Value
Diversified Telecommunication Services (continued)
Intelsat Jackson Holdings SA		7.50	%		4-1-2021	$	50,000	$	54,750
Intelsat Jackson Holdings SA		8.50			11-1-2019		40,000		42,650
Intelsat Luxembourg SA		7.75			6-1-2021		95,000		100,700
Intelsat Luxembourg SA		8.13			6-1-2023		40,000		43,000
Virgin Media Secured Finance plc 144A		5.38			4-15-2021		25,000		25,719
									951,607

Wireless Telecommunication Services : 0.04%
Telesat Canada 144A		6.00			5-15-2017		50,000		51,688

Total Yankee Corporate Bonds and Notes (Cost $1,755,310)									1,842,890

Short-Term Investments : 5.24%

	Yield					Shares
Investment Companies : 5.24%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.07					6,682,299		6,682,299

Total Short-Term Investments (Cost $6,682,299)									6,682,299

Total investments in securities (Cost $122,038,791)*		116.25	%						148,303,799
Other assets and liabilities, net		(16.25	)						(20,735,664	)

Total net assets		100.00	%					$	127,568,135

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

†	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

(s)

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

%%	Security issued on a when-issued basis.

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

(l)

Represents an affiliate of the Fund under Sections 2(a)(2) and 2(a)(3) of the Investment Company Act of 1940, as amended

(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/or unfunded loans.

*	Cost for federal income tax purposes is $122,525,871 and unrealized gains (losses) consists of:

Gross unrealized gains

29,348,977

Gross unrealized losses

(3,571,049

)

Net unrealized gains

25,777,928

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

Notes to Portfolio of investments – May 31, 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 NAVs that are higher or lower than NAVs based on the last reported sales price or latest quoted bid price. On May 31, 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 May 31, 2014, the Fund had unfunded loan commitments of $59,700.

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, 2014, the inputs used in valuing investments in securities were as follows:


Assets	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Investments in :
Common stocks
Consumer Discretionary	$	2,491,698	$	0	$	0	$	2,491,698
Energy		12,153,132		0		0		12,153,132
Industrials		5,622,647		0		0		5,622,647
Telecommunication Services		10,667,294		0		0		10,667,294
Utilities		51,748,828		0		0		51,748,828
Corporate bonds and notes		0		35,822,455		0		35,822,455
Loans		0		3,769,195		418,221		4,187,416
Preferred stocks
Financials		93,754		0		0		93,754
Telecommunication Services		2,357,100		0		0		2,357,100
Utilities		12,118,823		2,478,823		0		14,597,646
Warrants
Utilities		0		36,640		0		36,640
Yankee corporate bonds and notes		0		1,842,890		0		1,842,890
Short-term investments
Investment companies		6,682,299		0		0		6,682,299

Total assets	$	103,935,575	$	43,950,003	$	418,221	$	148,303,799

Transfers in and transfers out are recognized at the end of the reporting period. For the nine months ended May 31, 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

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 “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:		July 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:		July 28, 2014



By:		/s/ Nancy Wiser
		Nancy Wiser
		Treasurer

Date:		July 28, 2014