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, 2012

Date of reporting period: November 30, 2012

ITEM 1. PORTFOLIO OF INVESTMENTS


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)


Security name	Shares		Value
Common Stocks : 66.35%
Consumer Discretionary : 3.09%
Media : 3.09%
Comcast Corporation Class A		40,300	$	1,498,354
DISH Network Corporation		50,000		1,852,000
				3,350,354

Energy : 6.77%
Oil, Gas & Consumable Fuels : 6.77%
EQT Corporation		15,000		900,900
Kinder Morgan Incorporated		10,577		357,608
Spectra Energy Corporation		100,000		2,795,000
The Williams Companies Incorporated		100,000		3,284,000
				7,337,508

Industrials : 3.91%
Air Freight & Logistics : 3.83%
Deutsche Post AG		200,000		4,151,358

Building Products : 0.08%
Ameresco Incorporated Class A †		9,000		84,600

Information Technology : 4.67%
Internet Software & Services : 4.67%
AOL Incorporated		135,000		5,065,200

Telecommunication Services : 8.11%
Diversified Telecommunication Services : 5.52%
BCE Incorporated		16,000		676,800
France Telecom SA		150,000		1,587,777
Tele2 AB Series B		50,000		873,996
Telecom Italia SpA		2,000,000		1,595,776
Telefonica Brasil ADR		18,600		408,084
Windstream Corporation		100,000		838,000
				5,980,433

Wireless Telecommunication Services : 2.59%
Shenandoah Telecommunications Company		40,000		556,000
Turkcell Iletisim Hizmetleri AS ADR †		70,000		1,060,500
VimpelCom Limited ADR		100,000		1,058,000
Vodafone Group plc ADR		5,000		129,000
				2,803,500

Utilities : 39.80%
Electric Utilities : 27.90%
American Electric Power Company Incorporated		25,000		1,066,250
Chesapeake Utilities Corporation		200		9,000
Duke Energy Corporation		30,514		1,947,403
Edison International		2,000		90,960
Entergy Corporation		1,000		63,540
Great Plains Energy Incorporated		298,810		6,050,903
Hawaiian Electric Industries Incorporated		100,000		2,491,000
IDACORP Incorporated		25,000		1,067,750
ITC Holdings Corporation		60,000		4,713,000


PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security name						Shares		Value
Electric Utilities (continued)
Nextera Energy Incorporated							70,000	$	4,809,700
Northeast Utilities							101,312		3,924,827
NV Energy Incorporated							75,000		1,374,750
Pepco Holdings Incorporated							100		1,974
The Southern Company							60,000		2,613,000
									30,224,057

Gas Utilities : 2.64%
Gas Natural Incorporated							25,000		238,000
National Fuel Gas Company							50,000		2,604,000
New Jersey Resources							200		8,116
South Jersey Industries Incorporated							200		9,994
									2,860,110

Multi-Utilities : 7.07%
CenterPoint Energy Incorporated							50,000		986,500
CH Energy Group Incorporated							500		32,605
Dominion Resources Incorporated							300		15,333
Enel SpA							350,000		1,326,432
Hera SpA							1,467,400		2,305,381
MDU Resources Group Incorporated							500		10,360
Public Service Enterprise Group Incorporated							50,000		1,504,500
Sempra Energy							19,900		1,361,558
Wisconsin Energy Corporation							3,000		112,590
									7,655,259

Water Utilities : 2.19%
American Water Works Company Incorporated							50,000		1,908,500
Middlesex Water Company							25,000		467,750
									2,376,250

Total Common Stocks (Cost $62,139,017)									71,888,629


	Interest rate			Maturity date		Principal
Corporate Bonds and Notes : 30.96%
Consumer Discretionary : 7.13%
Auto Components : 0.63%
Allison Transmission Incorporated 144A		7.13	%		5-15-2019	$	270,000		287,550
Cooper Tire & Rubber Company		7.63			3-15-2027		215,000		220,375
Goodyear Tire & Rubber Company		7.00			5-15-2022		25,000		26,688
Penske Automotive Group Incorporated 144A		5.75			10-1-2022		10,000		10,175
United Rentals Financing Escrow Corporation 144A		5.75			7-15-2018		125,000		134,688
									679,476

Diversified Consumer Services : 0.80%
Service Corporation International		4.50			11-15-2020		25,000		25,313
Service Corporation International		6.75			4-1-2016		100,000		111,250
Service Corporation International		7.00			6-15-2017		25,000		28,750
Service Corporation International		7.50			4-1-2027		465,000		495,225
Service Corporation International		7.63			10-1-2018		25,000		29,813
Service Corporation International		8.00			11-15-2021		40,000		49,400
Sotheby’s Company 144A		5.25			10-1-2022		125,000		126,250
									866,001


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)


Security name	Interest rate			Maturity date		Principal		Value
Hotels, Restaurants & Leisure : 2.52%
Ameristar Casinos Incorporated		7.50	%		4-15-2021	$	225,000	$	239,625
Burger King Corporation		9.88			10-15-2018		75,000		86,438
CCM Merger Incorporated 144A		9.13			5-1-2019		390,000		390,000
CityCenter Holdings LLC		7.63			1-15-2016		25,000		26,625
CityCenter Holdings LLC 144A		7.63			1-15-2016		75,000		79,688
CityCenter Holdings LLC ¥		10.75			1-15-2017		200,431		215,964
DineEquity Incorporated		9.50			10-30-2018		350,000		395,938
Greektown Superholdings Incorporated Series A		13.00			7-1-2015		300,000		321,000
Greektown Superholdings Incorporated Series B		13.00			7-1-2015		150,000		160,500
NAI Entertainment Holdings LLC 144A		8.25			12-15-2017		330,000		364,650
Penn National Gaming Incorporated		8.75			8-15-2019		75,000		85,594
Ruby Tuesday Incorporated 144A		7.63			5-15-2020		150,000		141,750
Scientific Games Corporation		9.25			6-15-2019		60,000		66,750
Speedway Motorsports Incorporated		6.75			2-1-2019		25,000		26,250
Speedway Motorsports Incorporated		8.75			6-1-2016		120,000		128,400
									2,729,172

Household Durables : 0.02%
American Greetings Corporation		7.38			12-1-2021		25,000		26,031

Media : 2.72%
Cablevision Systems Corporation		8.63			9-15-2017		145,000		166,388
CCO Holdings LLC		6.50			4-30-2021		75,000		80,906
CCO Holdings LLC		7.00			1-15-2019		125,000		135,313
Cinemark USA Incorporated		7.38			6-15-2021		75,000		82,125
Cinemark USA Incorporated		8.63			6-15-2019		165,000		182,325
CSC Holdings LLC		7.63			7-15-2018		25,000		28,688
CSC Holdings LLC		7.88			2-15-2018		75,000		86,250
DISH DBS Corporation		7.88			9-1-2019		115,000		135,988
EchoStar DBS Corporation		7.13			2-1-2016		50,000		56,063
Gray Television Incorporated 144A		7.50			10-1-2020		235,000		235,000
Lamar Media Corporation		5.88			2-1-2022		75,000		79,781
Lamar Media Corporation		7.88			4-15-2018		130,000		143,488
Lamar Media Corporation Series C		9.75			4-1-2014		25,000		27,500
LIN Television Corporation 144A		6.38			1-15-2021		25,000		25,563
LIN Television Corporation		8.38			4-15-2018		150,000		162,750
Local TV Finance LLC 144A		9.25			6-15-2015		425,000		430,313
National CineMedia LLC		6.00			4-15-2022		170,000		179,775
National CineMedia LLC		7.88			7-15-2021		50,000		55,250
Nexstar Broadcasting Group Incorporated 144A		6.88			11-15-2020		95,000		95,475
Regal Cinemas Corporation		8.63			7-15-2019		285,000		312,788
Salem Communications Corporation		9.63			12-15-2016		223,000		246,973
									2,948,702

Specialty Retail : 0.44%
Gap Incorporated		5.95			4-12-2021		50,000		56,992
Limited Brands Incorporated		6.63			4-1-2021		25,000		28,656
RadioShack Corporation		6.75			5-15-2019		150,000		93,938
Rent-A-Center Incorporated		6.63			11-15-2020		75,000		81,375
Toys “R” Us Property Company I LLC		10.75			7-15-2017		55,000		59,950
Toys “R” Us Property Company II LLC		8.50			12-1-2017		150,000		160,125
									481,036

Consumer Staples : 0.19%
Food Products : 0.19%
Dole Food Company Incorporated		13.88			3-15-2014		181,000		200,910


PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security name	Interest rate			Maturity date		Principal		Value
Energy : 5.51%
Energy Equipment & Services : 1.12%
Bristow Group Incorporated		6.25	%		10-15-2022	$	135,000	$	143,100
Dresser-Rand Group Incorporated		6.50			5-1-2021		75,000		78,750
Gulfmark Offshore Incorporated 144A		6.38			3-15-2022		225,000		229,500
Hornbeck Offshore Services Incorporated Series B		8.00			9-1-2017		210,000		225,750
NGPL PipeCo LLC 144A		7.12			12-15-2017		25,000		27,000
Northern Tier Energy LLC 144A		7.13			11-15-2020		40,000		40,200
Oil States International Incorporated		6.50			6-1-2019		125,000		132,813
PHI Incorporated		8.63			10-15-2018		300,000		319,500
Pride International Incorporated		8.50			6-15-2019		10,000		13,382
									1,209,995

Oil, Gas & Consumable Fuels : 4.39%
CVR Energy Incorporated 144A		10.88			4-1-2017		100,000		109,750
CVR Refining LLC 144A		6.50			11-1-2022		100,000		98,500
Denbury Resources Incorporated		6.38			8-15-2021		25,000		27,500
Denbury Resources Incorporated		8.25			2-15-2020		140,000		158,200
El Paso Corporation		6.50			9-15-2020		45,000		50,484
El Paso Corporation		7.00			6-15-2017		75,000		85,707
El Paso Corporation		7.25			6-1-2018		175,000		202,239
El Paso Corporation		7.42			2-15-2037		90,000		96,520
El Paso Corporation		7.80			8-1-2031		100,000		115,659
Encore Acquisition Company		9.50			5-1-2016		50,000		53,625
Energy Transfer Equity LP		7.50			10-15-2020		300,000		340,500
Ferrellgas LP		9.13			10-1-2017		200,000		215,000
HollyFrontier Corporation		9.88			6-15-2017		220,000		240,075
Inergy Midstream LP 144A		6.00			12-15-2020		55,000		55,963
Kinder Morgan Energy 144A		6.00			1-15-2018		25,000		27,340
NGPL PipeCo LLC 144A		7.77			12-15-2037		200,000		208,000
NGPL PipeCo LLC 144A		9.63			6-1-2019		225,000		258,750
Overseas Shipholding Group Incorporated (s)		7.50			2-15-2024		50,000		19,250
Petrohawk Energy Corporation		7.88			6-1-2015		95,000		98,851
Petrohawk Energy Corporation		10.50			8-1-2014		60,000		64,200
Pioneer Natural Resources Company		7.50			1-15-2020		145,000		184,093
Plains Exploration & Production Company		8.63			10-15-2019		325,000		362,375
Rockies Express Pipeline LLC 144A		3.90			4-15-2015		150,000		149,625
Rockies Express Pipeline LLC 144A		5.63			4-15-2020		25,000		24,250
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		435,000		393,675
Rockies Express Pipeline LLC 144A		7.50			7-15-2038		95,000		88,588
Sabine Pass LNG LP 144A		6.50			11-1-2020		355,000		355,000
Sabine Pass LNG LP		7.50			11-30-2016		300,000		324,000
Suburban Propane Partners LP		7.38			3-15-2020		25,000		26,750
Suburban Propane Partners LP 144A		7.38			8-1-2021		36,000		38,520
Suburban Propane Partners LP 144A		7.50			10-1-2018		42,000		44,940
Susser Holdings LLC		8.50			5-15-2016		125,000		133,750
Tesoro Corporation		9.75			6-1-2019		90,000		103,500
									4,755,179

Financials : 5.37%
Capital Markets : 0.36%
ETRADE Financial Corporation*		12.50			11-30-2017		68,000		76,524
Nuveen Investments Incorporated		5.50			9-15-2015		275,000		261,250
Nuveen Investments Incorporated 144A		9.13			10-15-2017		50,000		49,625
									387,399

Commercial Banks : 0.68%
CIT Group Incorporated 144A		4.75			2-15-2015		200,000		207,500
CIT Group Incorporated		5.00			5-15-2017		25,000		26,188
CIT Group Incorporated 144A		5.25			4-1-2014		100,000		103,500


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)


Security name	Interest rate			Maturity date		Principal		Value
Commercial Banks (continued)
CIT Group Incorporated		5.25	%		3-15-2018	$	25,000	$	26,531
CIT Group Incorporated 144A		5.50			2-15-2019		100,000		106,500
CIT Group Incorporated 144A		6.63			4-1-2018		50,000		56,000
Emigrant Bancorp Incorporated 144A		6.25			6-15-2014		225,000		209,760
									735,979

Consumer Finance : 3.07%
Ally Financial Incorporated		3.13			1-15-2016		25,000		25,069
Ally Financial Incorporated		5.50			2-15-2017		50,000		53,240
Ally Financial Incorporated		8.30			2-12-2015		825,000		921,938
American General Finance Corporation		5.40			12-1-2015		150,000		140,250
American General Finance Corporation		5.75			9-15-2016		50,000		44,750
American General Finance Corporation		6.50			9-15-2017		50,000		43,625
Ashtead Capital Incorporated 144A		6.50			7-15-2022		125,000		133,125
Clearwire Communications Finance Corporation 144A		12.00			12-1-2015		130,000		137,150
Ford Motor Credit Company LLC		8.00			12-15-2016		25,000		30,139
General Motors Financial Company Incorporated 144A		4.75			8-15-2017		20,000		20,811
General Motors Financial Company Incorporated		6.75			6-1-2018		100,000		112,708
GMAC LLC		6.75			12-1-2014		36,000		38,880
Homer City Funding LLC (s)		8.73			10-1-2026		136,276		150,585
International Lease Finance Corporation 144A		6.75			9-1-2016		50,000		55,750
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		83,531
JBS USA Finance Incorporated		11.63			5-1-2014		420,000		473,025
Nielsen Finance LLC Company 144A		4.50			10-1-2020		40,000		39,900
Nielsen Finance LLC Company		7.75			10-15-2018		500,000		557,500
Springleaf Finance Corporation		6.90			12-15-2017		250,000		221,875
									3,324,364

Diversified Financial Services : 0.22%
Fidelity National Information Services Incorporated		5.00			3-15-2022		25,000		26,125
HUB International Limited Company 144A		8.13			10-15-2018		205,000		212,688
									238,813

Insurance : 0.16%
USI Holdings Corporation ±144A		4.19			11-15-2014		50,000		49,875
USI Holdings Corporation 144A		9.75			5-15-2015		125,000		128,750
									178,625

REITs : 0.88%
Dupont Fabros Technology Incorporated		8.50			12-15-2017		565,000		620,088
Host Hotels & Resorts Incorporated		9.00			5-15-2017		30,000		32,288
Omega Healthcare Investors Incorporated		6.75			10-15-2022		125,000		137,656
Sabra Health Care REIT Incorporated		8.13			11-1-2018		150,000		159,525
									949,557

Health Care : 1.66%
Health Care Equipment & Supplies : 0.07%
Hologic Incorporated 144A		6.25			8-1-2020		70,000		74,375

Health Care Providers & Services : 1.37%
Apria Healthcare Group Incorporated		11.25			11-1-2014		70,000		72,363
Aviv Health Care Incorporated		7.75			2-15-2019		100,000		105,000
Centene Corporation		5.75			6-1-2017		75,000		79,688
Community Health Systems Incorporated		5.13			8-15-2018		40,000		42,100
Community Health Systems Incorporated		7.13			7-15-2020		50,000		52,875
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		55,000		57,475
Emergency Medical Services Corporation		8.13			6-1-2019		25,000		26,688


PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services (continued)
Fresenius Medical Care Holdings Incorporated 144A		5.63	%		7-31-2019	$	100,000	$	106,750
HCA Incorporated		4.75			5-1-2023		25,000		25,250
HCA Incorporated		5.88			3-15-2022		25,000		27,188
HCA Incorporated		6.50			2-15-2020		175,000		196,438
HCA Incorporated		7.50			11-15-2095		50,000		43,500
HCA Incorporated		8.50			4-15-2019		250,000		280,625
Health Management Associates Incorporated		6.13			4-15-2016		50,000		54,313
HealthSouth Corporation		5.75			11-1-2024		50,000		50,000
HealthSouth Corporation		7.25			10-1-2018		22,000		23,815
HealthSouth Corporation		7.75			9-15-2022		22,000		24,118
MPT Operating Partnership LP		6.38			2-15-2022		25,000		26,125
MPT Operating Partnership LP		6.88			5-1-2021		125,000		135,625
PSS World Medical Incorporated		6.38			3-1-2022		30,000		35,250
Tenet Healthcare Corporation 144A		4.75			6-1-2020		20,000		20,150
									1,485,336

Pharmaceuticals : 0.22%
Mylan Incorporated 144A		6.00			11-15-2018		115,000		126,788
Mylan Incorporated 144A		7.63			7-15-2017		25,000		28,094
Mylan Incorporated 144A		7.88			7-15-2020		75,000		88,594
									243,476

Industrials : 1.25%
Aerospace & Defense : 0.15%
GeoEye Incorporated		9.63			10-1-2015		55,000		61,050
TransDigm Group Incorporated 144A		5.50			10-15-2020		20,000		20,450
TransDigm Group Incorporated		7.75			12-15-2018		75,000		82,875
									164,375

Air Freight & Logistics : 0.01%
Aviation Capital Group Corporation 144A		6.75			4-6-2021		5,000		5,190
Aviation Capital Group Corporation 144A		7.13			10-15-2020		5,000		5,268
									10,458

Commercial Services & Supplies : 0.62%
Clean Harbors Incorporated 144A		5.13			6-1-2021		20,000		20,450
Corrections Corporation of America		7.75			6-1-2017		95,000		101,234
Covanta Holding Corporation		6.38			10-1-2022		50,000		54,200
Covanta Holding Corporation		7.25			12-1-2020		10,000		11,014
Geo Group Incorporated		7.75			10-15-2017		125,000		135,000
Iron Mountain Incorporated		5.75			8-15-2024		25,000		24,938
Iron Mountain Incorporated		8.38			8-15-2021		180,000		198,900
KAR Holdings Incorporated ±		4.31			5-1-2014		125,000		125,158
									670,894

Machinery : 0.15%
Cleaver-Brooks Incorporated 144A		12.25			5-1-2016		55,000		60,775
Columbus McKinnon Corporation		7.88			2-1-2019		75,000		80,250
Titan International Incorporated		7.88			10-1-2017		25,000		26,313
									167,338

Marine : 0.02%
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		25,000		25,625

Professional Services : 0.16%
Interactive Data Corporation		10.25			8-1-2018		150,000		168,000


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)


Security name	Interest rate			Maturity date		Principal		Value
Trading Companies & Distributors : 0.14%
H&E Equipment Services Incorporated 144A		7.00	%		9-1-2022	$	145,000	$	152,975

Information Technology : 2.80%
Communications Equipment : 0.13%
Avaya Incorporated		9.75			11-1-2015		50,000		39,625
Lucent Technologies Incorporated		6.45			3-15-2029		155,000		102,300
									141,925

Computers & Peripherals : 0.20%
NCR Corporation 144A		5.00			7-15-2022		215,000		217,688

Electronic Equipment, Instruments & Components : 0.78%
CDW Financial Corporation		12.54			10-12-2017		108,000		115,560
Jabil Circuit Incorporated		8.25			3-15-2018		620,000		728,500
									844,060

Internet Software & Services : 0.10%
Equinix Incorporated		8.13			3-1-2018		95,000		104,500

IT Services : 1.41%
Audatex North American Incorporated 144A		6.75			6-15-2018		50,000		53,625
CyrusOne LLC 144A		6.38			11-15-2022		25,000		25,875
Fidelity National Information Services Incorporated		7.63			7-15-2017		50,000		54,500
Fidelity National Information Services Incorporated		7.88			7-15-2020		100,000		112,500
First Data Corporation 144A		7.38			6-15-2019		50,000		51,375
First Data Corporation		11.25			3-31-2016		465,000		459,188
SunGard Data Systems Incorporated		7.38			11-15-2018		390,000		415,838
SunGard Data Systems Incorporated		7.63			11-15-2020		25,000		27,375
SunGard Data Systems Incorporated		10.25			8-15-2015		325,000		330,551
									1,530,827

Software : 0.18%
Nuance Communications Incorporated 144A		5.38			8-15-2020		85,000		87,550
SunGard Data Systems Incorporated 144A		6.63			11-1-2019		100,000		102,000
									189,550

Materials : 0.70%
Chemicals : 0.14%
Celanese Corporation		5.88			6-15-2021		20,000		22,350
Huntsman International LLC		5.50			6-30-2016		47,000		47,059
Tronox Finance LLC 144A		6.38			8-15-2020		90,000		88,650
									158,059

Containers & Packaging : 0.31%
Ball Corporation		5.00			3-15-2022		25,000		26,500
Crown Americas LLC		6.25			2-1-2021		20,000		21,900
Crown Americas LLC		7.63			5-15-2017		25,000		26,531
Crown Cork & Seal Company Incorporated (i)		7.50			12-15-2096		50,000		46,625
Owens-Brockway Glass Container Incorporated		3.00			6-1-2015		95,000		93,813
Owens-Illinois Incorporated		7.80			5-15-2018		60,000		69,000
Silgan Holdings Incorporated		5.00			4-1-2020		50,000		51,250
									335,619

Paper & Forest Products : 0.25%
Clearwater Paper Corporation		10.63			6-15-2016		70,000		76,825


PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security name	Interest rate			Maturity date		Principal		Value
Paper & Forest Products (continued)
Georgia-Pacific LLC		8.88	%		5-15-2031	$	125,000	$	189,838
									266,663

Telecommunication Services : 4.28%
Diversified Telecommunication Services : 1.78%
Citizens Communications Company		7.88			1-15-2027		200,000		202,500
Frontier Communications Corporation		8.13			10-1-2018		60,000		68,250
Frontier Communications Corporation		8.25			5-1-2014		3,000		3,255
GCI Incorporated		6.75			6-1-2021		75,000		74,625
GCI Incorporated		8.63			11-15-2019		368,000		393,760
Qwest Corporation		7.25			9-15-2025		125,000		147,200
Qwest Corporation		7.63			8-3-2021		20,000		22,577
SBA Telecommunications Incorporated 144A		5.63			10-1-2019		10,000		10,325
SBA Telecommunications Incorporated 144A		5.75			7-15-2020		200,000		209,000
SBA Telecommunications Incorporated		8.25			8-15-2019		7,000		7,858
TW Telecommunications Holdings Incorporated 144A		5.38			10-1-2022		405,000		419,175
TW Telecommunications Holdings Incorporated		8.00			3-1-2018		75,000		82,500
Windstream Corporation		7.88			11-1-2017		265,000		293,488
									1,934,513

Wireless Telecommunication Services : 2.50%
Allbritton Communications Company		8.00			5-15-2018		150,000		163,125
CC Holdings GS V LLC/Crown Castle GS III Corporation 144A		7.75			5-1-2017		50,000		53,125
Cricket Communications Incorporated		7.75			10-15-2020		150,000		155,625
Cricket Communications Incorporated Series I		7.75			5-15-2016		125,000		132,188
Crown Castle International Corporation 144A		5.25			1-15-2023		75,000		78,375
Crown Castle International Corporation		7.13			11-1-2019		10,000		11,025
MetroPCS Communications Incorporated		6.63			11-15-2020		200,000		211,500
MetroPCS Communications Incorporated		7.88			9-1-2018		50,000		54,000
Sprint Capital Corporation		6.88			11-15-2028		1,100,000		1,133,000
Sprint Capital Corporation		8.75			3-15-2032		220,000		261,250
Sprint Nextel Corporation 144A		9.00			11-15-2018		25,000		30,813
Sprint Nextel Corporation		11.50			11-15-2021		25,000		33,563
Syniverse Holdings Incorporated		9.13			1-15-2019		365,000		389,638
									2,707,227

Utilities : 2.07%
Electric Utilities : 0.96%
Energy Future Holdings Corporation 144A		6.88			8-15-2017		25,000		25,625
IPALCO Enterprises Incorporated		5.00			5-1-2018		100,000		103,000
IPALCO Enterprises Incorporated 144A		7.25			4-1-2016		160,000		177,200
Mirant Mid-Atlantic LLC Series C		10.06			12-30-2028		438,432		486,660
Otter Tail Corporation		9.00			12-15-2016		215,000		251,550
									1,044,035

Gas Utilities : 0.23%
AmeriGas Finance LLC		6.75			5-20-2020		175,000		190,750
AmeriGas Finance LLC		7.00			5-20-2022		50,000		54,500
									245,250

Independent Power Producers & Energy Traders : 0.88%
Calpine Construction Finance Corporation 144A		7.25			10-15-2017		360,000		385,200
Calpine Construction Finance Corporation 144A		8.00			6-1-2016		125,000		133,438
NRG Energy Incorporated		8.50			6-15-2019		185,000		202,113
NSG Holdings LLC (i)144A		7.75			12-15-2025		70,000		71,750
Reliant Energy Incorporated		7.63			6-15-2014		50,000		53,375
Reliant Energy Incorporated		9.24			7-2-2017		84,017		91,789


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)


Security name	Interest rate			Maturity date		Principal		Value
Independent Power Producers & Energy Traders (continued)
Reliant Energy Incorporated		9.68	%		7-2-2026	$	10,000	$	10,700
									948,365

Total Corporate Bonds and Notes (Cost $31,418,614)									33,542,372


	Dividend yield							Shares
Preferred Stocks : 11.52%
Financials : 0.05%
Diversified Financial Services : 0.05%
GMAC Capital Trust I ±		8.13					2,200		57,310

Telecommunication Services : 2.21%
Diversified Telecommunication Services : 2.21%
Qwest Corporation		7.00					90,000		2,393,100

Utilities : 9.26%
Electric Utilities : 2.78%
Indianapolis Power & Light Company		5.65					20,000		2,003,750
Southern California Edison		6.50					5,000		526,875
Wisconsin Public Service		5.08					4,804		484,904
									3,015,529

Multi-Utilities : 6.48%
DTE Energy Company		5.25					100,000		2,526,000
SCANA Corporation Series A		7.70					165,000		4,491,300
									7,017,300

Total Preferred Stocks (Cost $12,064,905)									12,483,239


	Interest rate			Maturity date		Principal
Term Loans : 3.00%
Capital Automotive LP		5.25			3-10-2017	$	266,778		267,891
CCM Merger Incorporated		6.00			3-1-2017		272,493		272,153
Coinmach Corporation		3.21			11-20-2014		269,094		260,349
Energy Transfer Equity LP		3.75			3-24-2017		75,000		75,322
Fairpoint Communications Incorporated		6.50			1-22-2016		305,086		292,215
Federal Mogul Corporation		2.15			12-29-2014		81,618		75,759
Federal Mogul Corporation		2.15			12-28-2015		41,642		38,652
First Data Corporation B1		2.96			9-24-2014		7,288		7,275
First Data Corporation B2		2.96			9-24-2014		10,684		10,665
First Data Corporation B3		2.96			9-24-2014		3,124		3,118
Focus Brands Incorporated		10.25			8-21-2018		125,000		126,250
Level 3 Financing Incorporated		4.75			2-1-2016		300,000		300,000
Merisant Company (i)		7.50			1-8-2014		70,336		69,750
Springleaf Finance Corporation		5.50			5-10-2017		100,000		98,775
Tallgrass Energy Partners LP <		0.00			10-25-2018		201,829		202,249
Texas Competitive Electric Holdings LLC		3.74			10-10-2014		1,471,940		1,007,033
United Surgical Partners International Incorporated		6.00			4-3-2019		99,500		99,749
Web Service Company LLC		7.00			8-28-2014		49,106		48,860
Total Term Loans (Cost $3,529,766)									3,256,065


PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)		WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security name						Shares		Value
Warrants : 0.06%
Utilities : 0.06%
Electric Utilities : 0.00%
China Hydroelectric Company ADR †							10,000	$	100

Gas Utilities : 0.06%
Kinder Morgan Incorporated †							16,000		60,480

Total Warrants (Cost $42,480)									60,580


	Interest rate			Maturity date		Principal
Yankee Corporate Bonds and Notes : 1.57%
Consumer Discretionary : 0.11%
Media : 0.11%
Videotron Limited		5.00	%		7-15-2022	$	35,000		36,050
Videotron Limited		9.13			4-15-2018		75,000		80,250
									116,300

Energy : 0.22%
Oil, Gas & Consumable Fuels : 0.22%
Griffin Coal Mining Company Limited (s)144A		9.50			12-1-2016		160,361		135,104
Ship Finance International Limited		8.50			12-15-2013		105,000		105,394
									240,498

Financials : 0.10%
Consumer Finance : 0.10%
Wind Acquisition Finance SpA 144A		11.75			7-15-2017		110,000		112,475

Information Technology : 0.27%
Computers & Peripherals : 0.27%
Seagate Technology HDD Holdings		6.80			10-1-2016		50,000		55,438
Seagate Technology HDD Holdings		6.88			5-1-2020		25,000		26,094
Seagate Technology HDD Holdings		7.00			11-1-2021		25,000		26,125
Seagate Technology HDD Holdings		7.75			12-15-2018		170,000		184,875
									292,532

Materials : 0.26%
Metals & Mining : 0.18%
Novelis Incorporated		8.38			12-15-2017		100,000		110,000
Novelis Incorporated		8.75			12-15-2020		75,000		84,000
									194,000

Paper & Forest Products : 0.08%
Sappi Limited 144A		7.50			6-15-2032		100,000		85,000

Telecommunication Services : 0.61%
Diversified Telecommunication Services : 0.27%
Intelsat Jackson Holdings Limited		7.25			4-1-2019		225,000		240,188
Intelsat Jackson Holdings Limited		7.50			4-1-2021		50,000		53,500
									293,688


WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND		PORTFOLIO OF INVESTMENTS — November 30, 2012 (UNAUDITED)


Security name			Interest rate			Maturity date		Principal		Value
Wireless Telecommunication Services : 0.34%
Digicel Group Limited 144A				12.00	%		4-1-2014	$	20,000	$	22,100
Intelsat Jackson Holdings SA				7.25			10-15-2020		75,000		80,063
Intelsat Jackson Holdings SA 144A				7.25			10-15-2020		75,000		79,875
Intelsat Luxembourg SA ¥				11.50			2-4-2017		125,000		132,656
Telesat Canada Incorporated 144A				6.00			5-15-2017		50,000		52,250
											366,944

Total Yankee Corporate Bonds and Notes (Cost $1,601,797)											1,701,437


			Yield					Shares
Short-Term Investments : 3.11%
Investment Companies : 3.11%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)				0.16					3,365,989		3,365,989

Total Short-Term Investments (Cost $3,365,989)											3,365,989

Total investments in securities (Cost $114,162,568)*	116.57	%									126,298,311
Other assets and liabilities, net	(16.57	)									(17,956,148	)

Total net assets	100.00	%								$	108,342,163

†	Non-income-earning security

144A

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

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

(s)

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

±	Variable rate investment

(i)

Illiquid security

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

(l)

Investment in an affiliate

(u)

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

*	Cost for federal income tax purposes is $114,876,135 and unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	15,487,933
Gross unrealized depreciation		(4,065,757	)

Net unrealized appreciation	$	11,422,176

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND

NOTES TO PORTFOLIO OF INVESTMENTS – NOVEMBER 30, 2012 (UNAUDITED)

Securities valuation

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

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

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

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in NAVs that are higher or lower than NAVs based on the last reported sales price or latest quoted bid price. On November 30, 2012, 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 received from an independent pricing service which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

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

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

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

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

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

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

When-issued transactions

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

Term loans

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

As of November 30, 2012, the Fund had unfunded loan commitments of $199,811.

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, etc.)

Level 3 –

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

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

As of November 30, 2012, the inputs used in valuing investments in securities, 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	$	71,888,629	$	0	$	0	$	71,888,629
Preferred stocks		9,467,710		3,015,529		0		12,483,239
Corporate bonds and notes		0		33,542,372		0		33,542,372
Term loans		0		2,197,564		1,058,501		3,256,065
Warrants		0		60,580		0		60,580
Yankee corporate bonds and notes		0		1,701,437		0		1,701,437
Short-term investments
Investment companies		3,365,989		0		0		3,365,989

	$	84,722,328	$	40,517,482	$	1,058,501	$	126,298,311

Transfers in and transfers out are recognized at the end of the reporting period. For the three months ended November 30, 2012, the Fund did not have any transfers into/out of Level 1 or Level 2.

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 depositary receipt

ADS — American depositary 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 — Brazilian real

CAB — Capital appreciation bond

CAD — Canadian dollar

CCAB — Convertible capital appreciation bond

CDA — Community Development Authority

CDO — Collateralized debt obligation

CHF — Swiss franc

COP — Certificate of participation

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

FDIC — Federal Deposit Insurance Corporation

FFCB — Federal Farm Credit Banks

FGIC — Financial Guaranty Insurance Corporation

FGLMC — Federal Government Loan Mortgage 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

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

LIQ — Liquidity agreement

LLC — Limited liability company

LLP — Limited liability partnership

LOC — Letter of credit

LP — Limited partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multifamily housing revenue

MSTR — Municipal securities trust receipts

MTN — Medium-term note

MUD — Municipal Utility District

MXN — Mexican peso

MYR — Malaysian ringgit

NATL-RE — National Public Finance Guarantee Corporation

NOK — Norwegian krone

NZD — New Zealand dollar

PCFA — Pollution Control Financing Authority

PCL — Public Company Limited

PCR — Pollution control revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable floating option tax-exempt receipts

plc — Public limited company

PLN — Polish zloty

PUTTER — Puttable tax-exempt receipts

R&D — Research & development

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real estate investment trust

ROC — Reset option certificates

SAVRS — Select auction variable rate securities

SBA — Small Business Authority

SEK — Swedish krona

SFHR — Single-family housing revenue

SFMR — Single-family mortgage revenue

SGD — Singapore dollar

SKK — Slovakian koruna

SPA — Standby purchase agreement

SPDR — Standard & Poor’s Depositary Receipts

STRIPS — Separate trading of registered interest and

principal securities

TAN — Tax anticipation notes

TBA — To be announced

TIPS — Treasury inflation-protected securities

TRAN — Tax revenue anticipation notes

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 28, 2013

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


Wells Fargo Advantage Utilities and High Income Fund

By:		/s/ Karla M. Rabusch

		Karla M. Rabusch President

Date:		January 28, 2013

By:		/s/ Nancy Wiser

		Nancy Wiser Treasurer

Date:		January 28, 2013