Edgar Filing: WELLS FARGO ADVANTAGE UTILITIES & HIGH INCOME FUND

Form N-Q

LOGO

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21507

Wells Fargo Advantage Utilities and High Income Fund

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

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

(Name and address of agent for service)

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

Date of fiscal year end: August 31, 2011

Date of reporting period: November 30, 2011

ITEM 1.

SCHEDULE OF INVESTMENTS


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)


Security Name	Shares		Value
Common Stocks: 74.35%
Consumer Discretionary : 9.27%
Media : 9.27%
Comcast Corporation Class A		47,900	$	1,085,870
Dish Network Corporation		200,000		4,914,000
Mediaset SpA		1,310,000		3,872,523
				9,872,393

Energy : 8.56%
Oil, Gas & Consumable Fuels : 8.56%
Enbridge Incorporated		30,000		1,058,100
EQT Corporation		15,000		930,150
Southwestern Energy Company		25,000		951,250
Spectra Energy Corporation		100,000		2,942,000
The Williams Companies Incorporated		100,000		3,228,000
				9,109,500

Financials : 4.83%
Consumer Finance : 4.83%
MasterCard Incorporated		9,000		3,370,950
Visa Incorporated Class A		18,200		1,764,854
				5,135,804

Industrials : 0.10%
Construction & Engineering: 0.10%
Ameresco Incorporated Class A		9,000		106,920

Information Technology : 0.91%
IT Services: 0.91%
Convergys Corporation		75,000		969,000

Telecommunication Services : 13.15%
Diversified Telecommunication Services : 10.03%
BCE Incorporated		16,000		627,040
France Telecom SA		150,000		2,589,080
Shenandoah Telecommunications Company		40,000		441,600
Tele2 AB Series B		250,000		4,986,076
Telecom Italia RSP		357,100		348,926
Telefonica Brasil ADR		18,600		501,642
Windstream Corporation		100,000		1,176,000
				10,670,364

Wireless Telecommunication Services : 3.12%
Sprint Nextel Corporation #		366,099		988,467
Turkcell Iletisim Hizmetleri AS ADR		80,000		1,008,000
Vimpelcom Limited ADR		100,000		1,192,000
Vodafone Group plc ADR		5,000		135,750
				3,324,217


PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name						Shares		Value
Utilities : 37.53%
Electric Utilities : 26.48%
American Electric Power Company Incorporated							600	$	23,808
CenterPoint Energy Incorporated							50,000		995,000
CH Energy Group Incorporated							500		28,175
Chesapeake Utilities Corporation							200		8,598
China Hydroelectric Company ADR							10,000		7,600
Duke Energy Corporation							500		10,425
Edison International							2,000		78,620
Enel SpA							500,000		2,130,448
Entergy Corporation							1,000		70,360
FirstEnergy Corporation							75,000		3,335,250
Great Plains Energy Incorporated							150,000		3,156,000
Hawaiian Electric Industries Incorporated							100,000		2,591,000
ITC Holdings Corporation							36,000		2,661,120
Nextera Energy Incorporated							70,000		3,880,800
Northeast Utilities							100,000		3,461,000
NSTAR							1,000		45,490
NV Energy Incorporated							75,000		1,150,500
Pepco Holdings Incorporated							100		1,978
Portland General Electric Company							75,000		1,878,750
Progress Energy Incorporated							400		21,752
South Jersey Industries Incorporated							200		11,236
The Southern Company							60,000		2,634,600
									28,182,510

Gas Utilities : 4.96%
El Paso Corporation							25,000		625,250
MDU Resources Group Incorporated							500		10,735
National Fuel Gas Company							80,000		4,636,000
New Jersey Resources Corporation							200		9,462
									5,281,447

Multi-Utilities : 4.20%
Dominion Resources Incorporated							300		15,486
Public Service Enterprise Group Incorporated							100,000		3,294,000
Sempra Energy							19,900		1,058,481
Wisconsin Energy Corporation							3,000		99,540
									4,467,507

Water Utilities : 1.89%
American Water Works Company Incorporated							50,000		1,553,500
Middlesex Water Company							25,000		462,500
									2,016,000

Total Common Stocks (Cost $74,242,886)									79,135,662


	Interest Rate			Maturity Date		Principal
Corporate Bonds and Notes: 29.47%
Consumer Discretionary : 6.08%
Auto Components : 0.63%
Allison Transmission Incorporated 144A		7.13	%		05/15/2019	$	250,000		235,625
Cooper Tire & Rubber Company		7.63			03/15/2027		215,000		201,025


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Auto Components (continued)
Goodyear Tire & Rubber Company		10.50	%		05/15/2016	$	218,000	$	239,255
									675,905

Diversified Consumer Services : 0.80%
Carriage Services Incorporated		7.88			01/15/2015		185,000		185,000
Mac-Gray Corporation		7.63			08/15/2015		42,000		42,840
Service Corporation International		6.75			04/01/2016		100,000		106,250
Service Corporation International		7.50			04/01/2027		465,000		445,238
Service Corporation International		8.00			11/15/2021		40,000		43,800
Service Corporation International Series WI		7.00			06/15/2017		25,000		26,750
									849,878

Hotels, Restaurants & Leisure : 1.49%
Ameristar Casinos Incorporated 144A		7.50			04/15/2021		150,000		150,000
Burger King Corporation		9.88			10/15/2018		75,000		81,844
Chukchansi Economic Development Authority 144A		4.12			11/15/2012		100,000		55,000
Cinemark USA Incorporated 144A		7.38			06/15/2021		75,000		74,813
Citycenter Holdings LLC 144A		7.63			01/15/2016		25,000		24,750
Citycenter Holdings LLC 144A¥		11.50			01/15/2017		131,947		130,628
DineEquity Incorporated 144A		9.50			10/30/2018		300,000		310,500
Greektown Superholdings Incorporated		13.00			07/01/2015		300,000		307,500
Greektown Superholdings Incorporated		13.00			07/01/2015		150,000		153,750
Scientific Games Corporation		9.25			06/15/2019		60,000		63,000
Speedway Motorsports Incorporated		6.75			02/01/2019		25,000		24,875
Speedway Motorsports Incorporated		8.75			06/01/2016		120,000		130,200
Yonkers Racing Corporation 144A		11.38			07/15/2016		75,000		75,938
									1,582,798

Household Durables: 0.02%
American Greetings Corporation		7.38			12/01/2021		25,000		25,281

Media : 2.62%
Barrington Broadcasting Group LLC		10.50			08/15/2014		50,000		51,250
Cablevision Systems Corporation		8.63			09/15/2017		145,000		151,525
CCH II Capital Corporation		13.50			11/30/2016		605,000		697,263
Charter Communications Incorporated Step Bond 144A		10.88			09/15/2014		595,000		639,625
Cinemark USA Incorporated		8.63			06/15/2019		25,000		26,875
CSC Holdings LLC		7.88			02/15/2018		50,000		54,500
DISH DBS Corporation		7.88			09/01/2019		115,000		121,900
Gray Television Incorporated		10.50			06/29/2015		50,000		46,500
Interactive Data Corporation 144A		10.25			08/01/2018		100,000		107,000
Lamar Media Corporation		7.88			04/15/2018		75,000		77,438
Lamar Media Corporation Series C		9.75			04/01/2014		25,000		27,313
LIN Television Corporation		8.38			04/15/2018		75,000		75,750
Local TV Finance LLC 144A¥		9.25			06/15/2015		175,000		164,500
NAI Entertainment Holdings LLC 144A		8.25			12/15/2017		75,000		78,188
Regal Cinemas Corporation		8.63			07/15/2019		200,000		211,500
Regal Entertainment Group		9.13			08/15/2018		25,000		26,125
Salem Communications Corporation		9.63			12/15/2016		218,000		227,810
									2,785,062

Specialty Retail : 0.32%
Gap Incorporated		5.95			04/12/2021		50,000		47,254
Limited Brands Incorporated		6.63			04/01/2021		25,000		26,063
Radioshack Corporation		6.75			05/15/2019		100,000		86,250
Rent A Center Incorporated 144A		6.63			11/15/2020		25,000		25,000


PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Specialty Retail (continued)
Toys R Us Property Company LLC		8.50	%		12/01/2017	$	150,000	$	153,375
									337,942

Textiles, Apparel & Luxury Goods: 0.20%
Oxford Industries Incorporated		11.38			07/15/2015		200,000		219,000

Consumer Staples : 0.22%
Food Products : 0.22%
Darling International Incorporated 144A		8.50			12/15/2018		25,000		27,500
Dole Food Company Incorporated		13.88			03/15/2014		181,000		209,508
									237,008

Energy : 4.96%
Energy Equipment & Services : 1.00%
Bristow Group Incorporated		7.50			09/15/2017		110,000		113,300
Dresser Rand Group Incorporated 144A		6.50			05/01/2021		75,000		73,688
Gulfmark Offshore Incorporated		7.75			07/15/2014		225,000		225,000
Hornbeck Offshore Services Incorporated Series B		6.13			12/01/2014		260,000		261,300
Hornbeck Offshore Services Incorporated Series B		8.00			09/01/2017		55,000		56,100
Oil States International Incorporated 144A		6.50			06/01/2019		125,000		125,625
PHI Incorporated		8.63			10/15/2018		200,000		195,500
Pride International Incorporated		8.50			06/15/2019		10,000		12,472
									1,062,985

Oil, Gas & Consumable Fuels : 3.96%
Amerigas Partners Finance Corporation		6.25			08/20/2019		150,000		145,500
Chesapeake Energy Corporation		9.50			02/15/2015		255,000		286,875
Coffeyville Resources Energy Incorporated 144A		9.00			04/01/2015		45,000		47,925
Coffeyville Resources Energy Incorporated 144A		10.88			04/01/2017		100,000		112,500
Consol Energy Incorporated		8.25			04/01/2020		165,000		177,375
Denbury Resources Incorporated		6.38			08/15/2021		25,000		25,500
Denbury Resources Incorporated		8.25			02/15/2020		25,000		27,156
El Paso Corporation		6.50			09/15/2020		45,000		47,998
El Paso Corporation		7.25			06/01/2018		175,000		189,738
El Paso Corporation		7.42			02/15/2037		90,000		99,900
El Paso Corporation		7.80			08/01/2031		100,000		115,000
Encore Acquisition Company		9.50			05/01/2016		50,000		55,125
Energy Transfer Equity		7.50			10/15/2020		300,000		310,500
Ferrellgas LP		9.13			10/01/2017		200,000		206,000
Forest Oil Corporation		7.25			06/15/2019		95,000		94,050
Forest Oil Corporation		8.50			02/15/2014		65,000		69,875
Holly Corporation		9.88			06/15/2017		220,000		241,450
Inergy Holdings LP 144A		7.00			10/01/2018		50,000		49,000
Inergy Holdings LP 144A		6.88			08/01/2021		50,000		47,500
Newfield Exploration Company		6.88			02/01/2020		55,000		57,750
Overseas Shipholding Group Incorporated		7.50			02/15/2024		75,000		43,875
Peabody Energy Corporation		7.88			11/01/2026		315,000		337,050
Penn Virginia Corporation		10.38			06/15/2016		10,000		10,775
Petrohawk Energy Corporation		7.88			06/01/2015		95,000		101,175
Petrohawk Energy Corporation		10.50			08/01/2014		60,000		66,825
Pioneer Natural Resource Company		7.50			01/15/2020		145,000		168,079
Plains Exploration & Production Company		8.63			10/15/2019		325,000		354,250
Regency Energy Partners		6.88			12/01/2018		25,000		26,125
Sabine Pass LNG LP		7.25			11/30/2013		250,000		247,500
Sabine Pass LNG LP		7.50			11/30/2016		200,000		198,250
Suburban Propane Partners LP		7.38			03/15/2020		25,000		25,813


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Susser Holdings LLC		8.50	%		05/15/2016	$	125,000	$	134,063
Tesoro Corporation		9.75			06/01/2019		90,000		100,463
									4,220,960

Financials : 6.42%
Capital Markets : 0.71%
ETRADE Financial Corporation ¥*		12.50			11/30/2017		68,000		76,840
Nuveen Investments Incorporated		5.50			09/15/2015		225,000		188,438
Nuveen Investments Incorporated		10.50			11/15/2015		250,000		236,250
Nuveen Investments Incorporated 144A		10.50			11/15/2015		150,000		143,250
Oppenheimer Holdings Incorporated		8.75			04/15/2018		125,000		115,781
									760,559

Commercial Banks : 0.63%
CIT Group Incorporated 144A		5.25			04/01/2014		100,000		98,000
CIT Group Incorporated		7.00			05/04/2015		425,000		422,344
CIT Group Incorporated		7.00			05/01/2016		100,000		98,950
CIT Group Incorporated		7.00			05/01/2017		50,000		49,500
									668,794

Consumer Finance : 2.86%
American General Finance Corporation		5.40			12/01/2015		150,000		102,375
American General Finance Corporation		5.75			09/15/2016		50,000		33,125
American General Finance Corporation		6.50			09/15/2017		50,000		32,813
Calpine Construction Finance Corporation 144A		7.25			10/15/2017		400,000		408,000
Calpine Construction Finance Corporation 144A		8.00			06/01/2016		125,000		132,813
Clearwire Communications Finance Corporation 144A		12.00			12/01/2015		130,000		109,850
Ford Motor Credit Company LLC		8.00			12/15/2016		25,000		28,102
GMAC LLC		6.75			12/01/2014		36,000		35,280
GMAC LLC		6.88			08/28/2012		146,000		147,460
Homer City Funding LLC		8.73			10/01/2026		139,376		119,166
International Lease Finance Corporation		6.75			09/01/2016		50,000		50,250
International Lease Finance Corporation		8.63			09/15/2015		75,000		74,813
JBS USA Finance Incorporated		11.63			05/01/2014		420,000		467,250
Nielsen Finance LLC		7.75			10/15/2018		425,000		449,438
Nielsen Finance LLC		11.50			05/01/2016		49,000		55,860
Springleaf Finance Corporation		6.90			12/15/2017		225,000		151,313
Sprint Capital Corporation		6.88			11/15/2028		675,000		470,813
Sprint Capital Corporation		8.75			03/15/2032		220,000		171,050
									3,039,771

Diversified Financial Services : 0.88%
Ally Financial Incorporated 144A		8.30			02/12/2015		825,000		835,313
General Motors Financial Company Incorporated 144A		6.75			06/01/2018		100,000		99,614
									934,927

Insurance : 0.55%
Emigrant Bancorp Incorporated (i)144A		6.25			06/15/2014		225,000		201,596
HUB International Holdings Incorporated 144A		10.25			06/15/2015		275,000		266,063
USI Holdings Corporation		9.75			05/15/2015		125,000		118,125
									585,784

REIT : 0.79%
Dupont Fabros Technology Incorporated		8.50			12/15/2017		565,000		596,075


PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
REIT (continued)
Host Marriott Corporation		9.00	%		05/15/2017	$	30,000	$	32,925
Omega Healthcare Investors 144A		6.75			10/15/2022		125,000		123,125
Ventas Incorporated		9.00			05/01/2012		90,000		92,152
									844,277

Health Care : 1.09%
Health Care Equipment & Supplies : 0.16%
Biomet Incorporated 144A		10.38			10/15/2017		60,000		64,350
Biomet Incorporated		11.63			10/15/2017		100,000		107,000
									171,350

Health Care Providers & Services : 0.83%
Apria Healthcare Group		11.25			11/01/2014		70,000		69,563
Aviv Healthcare Properties LP 144A		7.75			02/15/2019		100,000		94,500
Centene Corporation		5.75			06/01/2017		75,000		73,125
Emergency Medical Services		8.13			06/01/2019		25,000		24,563
HCA Incorporated		6.50			02/15/2020		150,000		149,250
HCA Incorporated		7.50			02/15/2022		25,000		24,625
Health Management Associates Incorporated		7.38			01/15/2020		25,000		25,156
Health Management Associates Incorporated		6.13			04/15/2016		50,000		50,875
Healthsouth Corporation		7.25			10/01/2018		25,000		24,344
Healthsouth Corporation		7.75			09/15/2022		25,000		24,250
MPT Operating Partnership LP		6.88			05/01/2021		125,000		123,750
Sabra Health Care Corporation		8.13			11/01/2018		150,000		147,188
United Surgical Partners International Incorporated		8.88			05/01/2017		50,000		49,625
									880,814

Life Sciences Tools & Services: 0.03%
Community Health Systems Incorporated Series WI		8.88			07/15/2015		30,000		30,825

Pharmaceuticals : 0.07%
Mylan Incorporated 144A		6.00			11/15/2018		25,000		24,938
Mylan Incorporated 144A		7.63			07/15/2017		25,000		26,563
Mylan Incorporated 144A		7.88			07/15/2020		25,000		26,625
									78,126

Industrials : 1.95%
Aerospace & Defense : 0.51%
Alliant Techsystems Incorporated		6.75			04/01/2016		225,000		228,938
Geoeye Incorporated		9.63			10/01/2015		55,000		61,050
Hexcel Corporation		6.75			02/01/2015		53,000		53,729
L-3 Communications Holdings Incorporated		6.38			10/15/2015		167,000		170,549
Transdigm Incorporated		7.75			12/15/2018		25,000		25,750
									540,016

Commercial Services & Supplies : 0.84%
Casella Waste Systems Incorporated		11.00			07/15/2014		220,000		237,600
Corrections Corporation of America		6.25			03/15/2013		60,000		60,150
Corrections Corporation of America		7.75			06/01/2017		95,000		103,075
Geo Group Incorporated		7.75			10/15/2017		125,000		131,563
Iron Mountain Incorporated		8.38			08/15/2021		155,000		162,750
KAR Holdings Incorporated		4.43			05/01/2014		75,000		72,188


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Commercial Services & Supplies (continued)
NCO Group Incorporated		11.88	%		11/15/2014	$	125,000	$	123,906
									891,232

Industrial Conglomerates: 0.22%
Otter Tail Corporation		9.00			12/15/2016		215,000		231,125

Machinery : 0.29%
Cleaver-Brooks Incorporated 144A		12.25			05/01/2016		55,000		55,000
Columbus McKinnon Corporation 144A		7.88			02/01/2019		75,000		75,750
CPM Holdings Incorporated		10.63			09/01/2014		150,000		159,563
Titan International Incorporated 144A		7.88			10/01/2017		25,000		25,969
									316,282

Metals & Mining: 0.04%
Crown Cork & Seal Company Incorporated		7.50			12/15/2096		50,000		39,500

Road & Rail: 0.05%
RailAmerica Incorporated		9.25			07/01/2017		50,000		54,500

Information Technology : 2.42%
Communications Equipment : 0.36%
Avaya Incorporated		9.75			11/01/2015		100,000		78,250
EchoStar DBS Corporation		7.13			02/01/2016		50,000		51,375
Lucent Technologies Incorporated		6.45			03/15/2029		155,000		111,600
Lucent Technologies Incorporated Series B		2.88			06/15/2025		160,000		139,200
									380,425

Computers & Peripherals : 0.19%
Seagate Technology HDD Holdings		6.80			10/01/2016		50,000		51,500
Seagate Technology HDD Holdings 144A		6.88			05/01/2020		25,000		25,375
Seagate Technology HDD Holdings 144A		7.00			11/01/2021		25,000		25,000
Seagate Technology HDD Holdings 144A		7.75			12/15/2018		100,000		103,000
									204,875

Electronic Equipment, Instruments & Components : 0.80%
CDW LLC		12.54			10/12/2017		25,000		24,750
Jabil Circuit Incorporated		8.25			03/15/2018		620,000		703,700
Viasystem Group Incorporated 144A		12.00			01/15/2015		115,000		123,050
									851,500

Internet Software & Services: 0.09%
Equinix Incorporated		8.13			03/01/2018		95,000		101,175

IT Services : 0.98%
Audatex North American Incorporated		6.75			06/15/2018		25,000		25,188
Fidelity National Information Services Incorporated		7.88			07/15/2020		100,000		106,000
First Data Corporation		7.38			06/15/2019		50,000		47,000
First Data Corporation		11.25			03/31/2016		375,000		305,625
SunGard Data Systems Incorporated		7.38			11/15/2018		50,000		49,250
SunGard Data Systems Incorporated		7.63			11/15/2020		25,000		24,750
SunGard Data Systems Incorporated		10.25			08/15/2015		300,000		309,000
TW Telecommunications Holdings Incorporated		8.00			03/01/2018		75,000		78,750
Unisys Corporation 144A		12.75			10/15/2014		47,000		53,169


PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
IT Services (continued)
Unisys Corporation 144A		14.25	%		09/15/2015	$	36,000	$	40,725
									1,039,457

Materials : 1.12%
Chemicals : 0.30%
Huntsman International LLC		5.50			06/30/2016		140,000		133,700
Lyondell Chemical Company		11.00			05/01/2018		119,904		129,197
Solutia Incorporated		7.88			03/15/2020		50,000		53,250
									316,147

Containers & Packaging : 0.15%
Crown Americas LLC		7.63			05/15/2017		25,000		27,313
Graham Packaging Company Incorporated		9.88			10/15/2014		100,000		101,250
Owens Brockway Glass Container Incorporated		7.38			05/15/2016		25,000		27,000
									155,563

Metals & Mining : 0.44%
Freeport-McMoRan Copper & Gold Incorporated		8.38			04/01/2017		295,000		313,806
Novelis Incorporated		8.38			12/15/2017		100,000		104,000
Novelis Incorporated		8.75			12/15/2020		50,000		52,750
									470,556

Paper & Forest Products : 0.23%
Clearwater Paper Corporation		10.63			06/15/2016		70,000		77,700
Georgia-Pacific Corporation		8.88			05/15/2031		125,000		168,689
									246,389

Telecommunication Services : 3.07%
Diversified Telecommunication Services : 1.61%
Citizens Communications Company		7.88			01/15/2027		200,000		162,000
Frontier Communications Corporation		8.13			10/01/2018		60,000		57,300
Frontier Communications Corporation		8.25			05/01/2014		140,000		144,550
GCI Incorporated 144A		6.75			06/01/2021		75,000		71,813
GCI Incorporated		8.63			11/15/2019		150,000		156,750
Intelsat Jackson Holdings Limited 144A		7.25			04/01/2019		75,000		73,125
Intelsat Jackson Holdings Limited 144A		7.50			04/01/2021		50,000		47,500
Intelsat Jackson Holdings Limited		9.50			06/15/2016		300,000		312,750
Qwest Corporation		7.50			06/15/2023		180,000		180,000
Qwest Corporation		7.63			08/03/2021		20,000		19,150
SBA Telecommunications Incorporated		8.00			08/15/2016		50,000		53,500
SBA Telecommunications Incorporated		8.25			08/15/2019		25,000		26,906
U.S. West Communications Incorporated		7.25			09/15/2025		125,000		128,125
Windstream Corporation		7.88			11/01/2017		265,000		276,925
									1,710,394

Wireless Telecommunication Services : 1.46%
Allbritton Communications Company		8.00			05/15/2018		100,000		95,000
CC Holdings GS V LLC 144A		7.75			05/01/2017		50,000		53,875
Cricket Communications Incorporated		7.75			10/15/2020		125,000		98,125
Cricket Communications Incorporated Series I		7.75			05/15/2016		125,000		124,688
Crown Castle International Corporation		7.13			11/01/2019		10,000		10,725
Intelsat Limited		7.25			10/15/2020		75,000		71,438


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)


Security Name	Interest Rate			Maturity Date		Principal		Value
Wireless Telecommunication Services (continued)
MetroPCS Communications Incorporated		6.63	%		11/15/2020	$	250,000	$	218,125
MetroPCS Communications Incorporated		7.88			09/01/2018		50,000		48,250
Sprint Nextel Corporation		9.00			11/15/2018		150,000		151,125
Sprint Nextel Corporation		11.50			11/15/2021		25,000		23,563
Sprint Nextel Corporation Series D		7.38			08/01/2015		375,000		330,000
Syniverse Holdings Incorporation 144A		9.13			01/15/2019		325,000		333,125
									1,558,039

Utilities : 2.14%
Electric Utilities : 1.92%
Aquila Incorporated Step Bond		11.88			07/01/2012		794,000		840,225
Dolphin Subsidiary Incorporated		7.25			10/15/2021		175,000		184,188
Energy Future Holdings Corporation ¥		12.00			11/01/2017		52,529		43,074
IPALCO Enterprises Incorporated 144A		5.00			05/01/2018		75,000		71,231
Mirant Mid-Atlantic LLC Series C		10.06			12/30/2028		438,432		459,258
NRG Energy Incorporated		7.38			01/15/2017		250,000		260,000
NRG Energy Incorporated		8.50			06/15/2019		185,000		184,075
									2,042,051

Gas Utilities: 0.05%
AmeriGas Partners LP		6.50			05/20/2021		50,000		48,500

Independent Power Producers & Energy Traders : 0.17%
Reliant Energy Incorporated		9.24			07/02/2017		95,082		93,181
Reliant Energy Incorporated		9.68			07/02/2026		10,000		9,800
RRI Energy Incorporated		7.63			06/15/2014		50,000		49,750
RRI Energy Incorporated		7.88			06/15/2017		30,000		28,950
									181,681

Total Corporate Bonds and Notes (Cost $30,999,649)									31,371,453


	Dividend Yield					Shares
Preferred Stocks: 7.53%
Financials : 0.04%
Consumer Finance: 0.04%
GMAC Capital Trust I		8.13					2,200		41,800

Utilities : 7.49%
Electric Utilities : 3.05%
Great Plains Energy Incorporated		12.00					50,000		3,167,000
Interstate Power & Light Company		8.38					2,913		83,021
									3,250,021

Multi-Utilities: 4.44%
Scana Corporation		7.70					165,000		4,722,300

Total Preferred Stocks (Cost $7,631,715)									8,014,121


	Interest Rate					Principal
Term Loans: 3.41%
Arrowhead General Insurance Agency Incorporated		7.50			03/03/2017	$	99,500		97,510
Capital Automotive LP		5.00			03/10/2017		284,622		276,974


PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Term Loans (continued)
CCM Merger Incorporated		7.00	%		03/01/2017	$	365,296	$	362,100
Coinmach Corporation		3.27			11/20/2014		271,919		241,736
Fairpoint Communications Incorporated		6.50			01/22/2016		375,000		296,933
Federal Mogul Corporation		2.19			12/29/2014		32,684		30,171
Federal Mogul Corporation		2.19			12/28/2015		16,675		15,394
First Data Corporation		3.01			09/24/2014		475,437		420,933
Gray Television Incorporated		3.75			12/31/2014		71,260		69,568
HHI Holdings LLC		7.00			03/21/2017		99,500		97,759
Local TV Finance LLC		2.26			05/07/2013		106,284		102,631
Merisant Company (i)		7.50			01/08/2014		79,860		78,462
NCO Group Incorporated		8.00			11/15/2013		67,588		66,955
Newsday LLC		10.50			08/01/2013		365,000		375,494
Panolam Industries International (i)		8.25			12/31/2013		21,052		19,631
Springleaf Finance Corporation		5.50			05/05/2017		100,000		86,688
Texas Competitive Electric Holdings Company LLC		3.76			10/10/2014		1,296,940		940,281
WASH Multifamily Laundry Systems LLC		7.00			08/28/2014		49,616		48,955
Total Term Loans (Cost $3,899,103)									3,628,175


						Shares
Warrants: 0.00%
Utilities : 0.00%
Electric Utilities: 0.00%
China Hydroelectric Company ADR †							10,000		498

Total Warrants (Cost $12,000)									498


						Principal
Yankee Corporate Bonds and Notes: 0.74%
Consumer Discretionary : 0.08%
Media: 0.08%
Videotron Limited		9.13			04/15/2018	$	75,000		82,313

Energy : 0.16%
Oil, Gas & Consumable Fuels: 0.16%
Griffin Coal Mining Company Limited 144A(s)		9.50			12/31/2049		225,339		171,539

Financials : 0.17%
Consumer Finance: 0.09%
Wind Acquisition Finance SA		11.75			07/15/2017		110,000		94,875

Diversified Financial Services: 0.08%
Ship Finance International Limited		8.50			12/15/2013		105,000		89,250

Materials : 0.14%
Metals & Mining: 0.06%
Teck Resources Limited		10.75			05/15/2019		55,000		67,650


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2011 (UNAUDITED)


Security Name			Interest Rate			Maturity Date		Principal		Value
Paper & Forest Products: 0.08%
Sappi Limited				7.50	%		06/15/2032	$	100,000	$	79,500

Telecommunication Services : 0.19%
Wireless Telecommunication Services : 0.19%
Digicel Group Limited				12.00			04/01/2014		20,000		22,150
Intelsat Limited				11.25			06/15/2016		175,000		182,000
											204,150

Total Yankee Corporate Bonds and Notes (Cost $795,613)											789,277


			Yield					Shares
Short-Term Investments: 2.62%
Investment Companies : 2.62%
Wells Fargo Advantage Cash Investment Money Market Fund Institutional Class (l)(u)				0.05					2,789,318		2,789,318

Total Short-Term Investments (Cost $2,789,318)											2,789,318

Total Investments in Securities (Cost $120,370,284)*	118.12	%									125,728,504
Other Assets and Liabilities, Net	(18.12	)									(19,288,370	)

Total Net Assets	100.00	%								$	106,440,134

(i)

Illiquid security.

144A

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

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

†	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.

(l)

Investment in an affiliate.

(u)

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

#	All or a portion of this security is segregated as collateral for investments in derivative instruments.

*	Cost for federal income tax purposes is $120,768,274 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	13,900,487
Gross unrealized depreciation		(8,940,257	)

Net unrealized appreciation	$	4,960,230

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND

NOTES TO PORTFOLIO OF INVESTMENTS – November 30, 2011 (unaudited)

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

Securities valuation

Investments in securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities, including U.S. Government obligations, but excluding debt securities maturing in 60 days or less, the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Value Procedures.

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

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign investments 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 the investments, then those investments are fair valued following procedures approved by the Board of Trustees. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in NAVs that are higher or lower than NAVs based on the closing price or latest quoted bid price.

Certain fixed income securities with maturities exceeding 60 days are valued based on available market quotations received from an independent pricing service approved by the Board of Trustees which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the pricing service or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or determined based on the Fund’s Fair Value Procedures.

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

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Certain investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Foreign currency translation

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

The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are recorded with net realized and unrealized gains or losses from investments. Gains and losses from certain foreign currency transactions are treated as ordinary income for U.S. federal income tax purposes.

When-issued transactions

The Fund may purchase securities on a forward commitment or ‘when-issued’ basis. The Fund records a when-issued

transaction on the trade date and will segregate assets to cover its obligation by confirming the availability of qualifying assets having a value sufficient to make payment for the securities purchased. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Term loans

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

Options

The Fund may be subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may write covered put or call options. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options, which expire unexercised, are recognized as realized gains from investments on the expiration date. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.

The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment which is subsequently adjusted to the current market value of the option. Premiums paid for purchased options which expire are recognized as realized losses from investments on the expiration date. Premiums paid for purchased options which are exercised or closed are added to the amount paid or offset against the proceeds on the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

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 unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:


Level 1 –		quoted prices in active markets for identical securities

Level 2 –		other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 –		significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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

As of November 30, 2011, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity securities
Common stocks	$	79,135,662	$	0	$	0	$	79,135,662
Preferred stocks		8,014,121		0		0		8,014,121
Warrants		0		498		0		498
Corporate bonds and notes		0		30,809,214		562,239		31,371,453
Term loans		0		2,773,191		854,984		3,628,175
Yankee corporate bonds and notes		0		789,277		0		789,277
Short-term investments
Investment companies		2,789,318		0		0		2,789,318

	$	89,939,101	$	34,372,180	$	1,417,223	$	125,728,504

As of November 30, 2011, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:


Other financial instruments	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Written options	$	0	$	(160	)	$	0	$	(160	)

Transfers in and transfers out are recognized at the end of the reporting period. For the three months ended November 30, 2011, the Fund did not have any significant transfers into/out of Level 1 and Level 2.

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:


	Corporate bonds and notes			Term loans			Total
Balance as of August 31, 2011	$	584,450		$	1,414,710		$	1,999,160
Accrued discounts (premiums)		52			3,177			3,229
Realized gains (losses)		0			107			107
Change in unrealized gains (losses)		(22,263	)		17,654			(4,609	)
Purchases		0			0			0
Sales		0			(3,144	)		(3,144	)
Transfers into Level 3		0			0			0
Transfers out of Level 3		0			(577,520	)		(577,520	)

Balance as of November 30, 2011	$	562,239		$	854,984		$	1,417,223

Change in unrealized gains (losses) relating to securities still held at November 30, 2011	$	(22,263	)	$	12,597		$	(9,666	)

Derivative transactions

During the three months ended November 30, 2011, the Fund entered into written options for economic hedging purposes.

During the three months ended November 30, 2011, the Fund had written call option activities as follows:


	Number of Contracts			Premiums Received
Options outstanding at August 31, 2011		0		$	0
Options written		320			7,844
Options expired		(280	)		(7,175	)
Options terminated in closing purchase transactions		0			0
Options exercised		0			0

Options outstanding at November 30, 2011		40		$	669

Open call options written at November 30, 2011 were as follow for the Fund:


Expiration Date	Issuer Name	Number of Contracts		Strike Price		Market Value		Premiums Received
December 2011	Sprint Nextel Corporation		40	$	3.00	$	160	$	669

As of November 30, 2011, the Fund had outstanding written options with total premiums received that averaged $1,912 during the three months ended November 30, 2011. As of November 30, 2011, the Fund had segregated $10,800 as collateral for written options.

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

ACB — Agricultural Credit Bank

ADR — American Depository Receipt

ADS — American Depository Shares

AGC-ICC — Assured Guaranty Corporation - Insured Custody Certificates

AGM — Assured Guaranty Municipal

AMBAC — American Municipal Bond Assurance Corporation

AMT — Alternative Minimum Tax

AUD — Australian Dollar

BAN — Bond Anticipation Notes

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazil Real

CAB — Capital Appreciation Bond

CAD — Canadian Dollar

CCAB — Convertible Capital Appreciation Bond

CDA — Community Development Authority

CDO — Collateralized Debt Obligation

CHF — Swiss Franc

COP — Certificate of Participation

CR — Custody Receipts

DKK — Danish Krone

DRIVER — Derivative Inverse Tax-Exempt Receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETF — Exchange-Traded Fund

EUR — Euro

FFCB — Federal Farm Credit Bank

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Authority

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

FSA — Farm Service Agency

GBP — Great British Pound

GDR — Global Depository Receipt

GNMA — Government National Mortgage Association

GO — General Obligation

HCFR — Healthcare Facilities Revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher Education Facilities Authority Revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong Dollar

HUF — Hungarian Forint

IBC — Insured Bond Certificate

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Industrial Development Revenue

IEP — Irish Pound

JPY — Japanese Yen

KRW — Republic of Korea Won

LIBOR — London Interbank Offered Rate

LLC — Limited Liability Company

LLP — Limited Liability Partnership

LOC — Letter of Credit

LP — Limited Partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multi-Family Housing Revenue

MTN — Medium Term Note

MUD — Municipal Utility District

MXN — Mexican Peso

MYR — Malaysian Ringgit

NATL-RE — National Public Finance Guarantee Corporation

NOK — Norwegian Krone

NZD — New Zealand Dollar

PCFA — Pollution Control Finance Authority

PCR — Pollution Control Revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable Floating Option Tax-Exempt Receipts

plc — Public Limited Company

PLN — Polish Zloty

PUTTER — Puttable Tax-Exempt Receipts

R&D — Research & Development

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real Estate Investment Trust

ROC — Reset Option Certificates

SAVRS — Select Auction Variable Rate Securities

SBA — Small Business Authority

SEK — Swedish Krona

SFHR — Single Family Housing Revenue

SFMR — Single Family Mortgage Revenue

SGD — Singapore Dollar

SKK — Slovakian Koruna

SPDR — Standard & Poor’s Depositary Receipts

TAN — Tax Anticipation Notes

TBA — To Be Announced

TIPS — Treasury Inflation-Protected Securities

TRAN — Tax Revenue Anticipation Notes

TCR — Transferable Custody Receipts

TRY — Turkish Lira

TTFA — Transportation Trust Fund Authority

TVA — Tennessee Valley Authority

XLCA — XL Capital Assurance

ZAR — South African Rand

ITEM 2.

CONTROLS AND PROCEDURES

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

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

SIGNATURES

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


Wells Fargo Advantage Utilities and High Income Fund

By:		/s/ KARLA M. RABUSCH
		Karla M. Rabusch
		President

Date:		January 27, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


Wells Fargo Advantage Utilities and High Income Fund

By:		/s/ KARLA M. RABUSCH
		Karla M. Rabusch
		President

Date:		January 27, 2012

By:		/s/ KASEY L. PHILLIPS
		Kasey L. Phillips
		Treasurer

Date:		January 27, 2012