Edgar Filing: WELLS FARGO ADVANTAGE UTILITIES & HIGH INCOME FUND

Form N-Q

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: 800-643-9691

Date of fiscal year end: August 31, 2010

Date of reporting period: May 31, 2011

ITEM 1. SCHEDULE OF INVESTMENTS

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Shares		Value
Common Stocks: 67.87%

Consumer Discretionary: 6.95%

Media: 6.95%
Comcast Corporation Class A		47,900	$	1,208,996
Mediaset SpA		1,310,000		6,854,633
				8,063,629

Energy: 6.25%

Oil, Gas & Consumable Fuels: 6.25%
Enbridge Incorporated		15,000		1,009,350
EQT Corporation		15,000		812,700
Southwestern Energy Company		25,000		1,094,250
Spectra Energy Corporation		100,000		2,759,000
The Williams Companies Incorporated		50,000		1,569,500
				7,244,800

Financials: 4.89%

Capital Markets: 0.56%
optionsXpress Holdings Incorporated		35,600		651,480

Consumer Finance: 4.33%
MasterCard Incorporated		9,000		2,583,450
Visa Incorporated Class A		30,000		2,431,800
				5,015,250

Industrials: 0.11%

Construction & Engineering: 0.11%
Ameresco Incorporated Class A		9,000		131,580

Information Technology: 0.83%

IT Services: 0.83%
Convergys Corporation		75,000		958,500

Telecommunication Services: 14.31%

Diversified Telecommunication Services: 8.20%
BCE Incorporated		16,000		643,840
Shenandoah Telecommunications Company(i)		40,000		728,400
Tele2 AB Series B		325,000		6,356,286
Telecom Italia RSP		357,100		436,817
Windstream Corporation		100,000		1,345,000
				9,510,343

Wireless Telecommunication Services: 6.11%
Portugal Telecom SGPS SA ADR		585,000		6,411,600
Vivo Participacoes SA ADR		12,000		541,440
Vodafone Group plc ADR		5,000		140,150
				7,093,190

The Portfolio of Investments should be read in conjunction with the Financial Statements and Notes to Financial Statements which are included in the Fund’s audited Annual Report or Semi-Annual Report. These reports include additional information about the Fund’s security valuation policies and about certain security types invested in by the Fund.

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name						Shares		Value
Utilities: 34.53%

Electric Utilities: 20.63%
American Electric Power Company Incorporated							600	$	22,920
CenterPoint Energy Incorporated							50,000		966,500
CH Energy Group Incorporated							500		26,975
Chesapeake Midstream Partner LP							5,000		131,200
Chesapeake Utilities Corporation							200		8,088
China Hydroelectric Company ADR							10,000		43,800
Duke Energy Corporation							500		9,375
Edison International							2,000		78,720
Entergy Corporation							1,000		68,150
FirstEnergy Corporation							25,000		1,115,500
Great Plains Energy Incorporated							150,000		3,175,500
Hawaiian Electric Industries Incorporated							100,000		2,483,000
ITC Holdings Corporation							36,000		2,602,440
Nextera Energy Incorporated							70,000		4,056,500
Northeast Utilities							100,000		3,524,000
NSTAR							1,000		46,040
NV Energy Incorporated							75,000		1,182,750
Pepco Holdings Incorporated							100		1,997
Portland General Electric Company							75,000		1,947,750
Progress Energy Incorporated							400		19,048
South Jersey Industries Incorporated							200		11,194
The Southern Company							60,000		2,404,800
									23,926,247

Gas Utilities: 2.96%
El Paso Corporation							25,000		526,250
MDU Resources Group Incorporated							500		11,815
National Fuel Gas Company							40,000		2,881,600
New Jersey Resources Corporation							200		9,216
									3,428,881

Multi-Utilities: 6.07%
Dominion Resources Incorporated							300		14,316
PG&E Corporation							96,000		4,164,480
Public Service Enterprise Group Incorporated							50,000		1,675,000
Sempra Energy							19,900		1,097,883
Wisconsin Energy Corporation							3,000		93,810
									7,045,489

Water Utilities: 4.87%
American Water Works Company Incorporated							50,000		1,500,500
Middlesex Water Company							25,000		469,000
Pennichuck Corporation							130,000		3,684,200
									5,653,700

Total Common Stocks (Cost $70,225,811)									78,723,089


	Interest Rate			Maturity Date		Principal
Corporate Bonds and Notes: 29.22%

Consumer Discretionary: 4.97%

Auto Components: 0.48%
Allison Transmission Incorporated††		7.13	%		05/15/2019		100,000		99,250

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Auto Components (continued)
Cooper Tire & Rubber Company		7.63	%		03/15/2027	$	215,000		209,088
Goodyear Tire & Rubber Company		10.50			05/15/2016		218,000		246,885
									555,223

Diversified Consumer Services: 0.86%
Carriage Services Incorporated		7.88			01/15/2015		185,000		187,313
Service Corporation International		6.75			04/01/2016		75,000		80,438
Service Corporation International		7.50			04/01/2027		465,000		451,050
Service Corporation International		8.00			11/15/2021		40,000		44,300
StoneMor Partners LP		10.25			12/01/2017		225,000		231,469
									994,570

Hotels, Restaurants & Leisure: 1.07%
Ameristar Casinos Incorporated††		7.50			04/15/2021		75,000		77,813
Burger King Corporation		9.88			10/15/2018		75,000		79,969
Chukchansi Economic Development Authority††		3.92			11/15/2012		100,000		82,250
Cinemark USA Incorporated††		7.38			06/15/2021		25,000		25,000
Citycenter Holdings LLC††		7.63			01/15/2016		25,000		25,625
Citycenter Holdings LLC††¥		11.50			01/15/2017		75,000		83,813
DineEquity Incorporated††		9.50			10/30/2018		50,000		54,750
Greektown Superholdings Incorporated		13.00			07/01/2015		300,000		339,000
Greektown Superholdings Incorporated		13.00			07/01/2015		150,000		169,500
Scientific Games Corporation		9.25			06/15/2019		60,000		66,000
Speedway Motorsports Incorporated		6.75			02/01/2019		25,000		25,375
Speedway Motorsports Incorporated		8.75			06/01/2016		120,000		131,400
Yonkers Racing Corporation††		11.38			07/15/2016		75,000		82,594
									1,243,089

Household Durables: 0.01%
Sealy Mattress Corporation††		10.88			04/15/2016		9,000		10,103

Leisure Equipment & Products: 0.02%
Eastman Kodak Company		7.25			11/15/2013		25,000		23,813

Media: 2.20%
Cablevision Systems Corporation		8.63			09/15/2017		145,000		163,488
CCH II Capital Corporation		13.50			11/30/2016		605,000		719,950
Charter Communications Incorporated Step Bond††		10.88			09/15/2014		595,000		660,450
CSC Holdings LLC		7.88			02/15/2018		50,000		54,750
DISH DBS Corporation		7.88			09/01/2019		115,000		125,206
Gray Television Incorporated		10.50			06/29/2015		50,000		53,125
Interactive Data Corporation††		10.25			08/01/2018		25,000		27,813
Lamar Media Corporation Series C		9.75			04/01/2014		25,000		29,063
LIN Television Corporation		8.38			04/15/2018		75,000		80,250
Local TV Finance LLC††¥		9.25			06/15/2015		100,000		100,000
NAI Entertainment Holdings LLC††		8.25			12/15/2017		75,000		81,000
Regal Cinemas Corporation		8.63			07/15/2019		200,000		214,000
Salem Communications Corporation		9.63			12/15/2016		230,000		246,675
									2,555,770

Specialty Retail: 0.13%
Gap Incorporated		5.95			04/12/2021		50,000		49,012
Limited Brands Incorporated		6.63			04/01/2021		25,000		26,063
Rent-A-Center Incorporated††		6.63			11/15/2020		25,000		24,938

PORTFOLIO OF INVESTMENTS — May 31, 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 I LLC		8.50	%		12/01/2017	$	50,000		53,563
									153,576

Textiles, Apparel & Luxury Goods: 0.20%
Oxford Industries Incorporated		11.38			07/15/2015		200,000		228,000

Consumer Staples: 0.28%

Food Products: 0.28%
Blue Merger Incorporated††		7.63			02/15/2019		75,000		76,547
Darling International Incorporated††		8.50			12/15/2018		25,000		27,250
Dole Food Company Incorporated		13.88			03/15/2014		181,000		219,236
									323,033

Energy: 4.71%

Energy Equipment & Services: 0.88%
Bristow Group Incorporated		7.50			09/15/2017		110,000		115,500
Dresser Rand Group Incorporated††		6.50			05/01/2021		75,000		77,438
Gulfmark Offshore Incorporated		7.75			07/15/2014		225,000		228,375
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		56,375
Oil States International Incorporated††		6.50			06/01/2019		50,000		50,313
PHI Incorporated		8.63			10/15/2018		200,000		212,500
Pride International Incorporated		8.50			06/15/2019		10,000		12,804
									1,014,605

Oil, Gas & Consumable Fuels: 3.83%
Chesapeake Energy Corporation		9.50			02/15/2015		255,000		300,900
Coffeyville Resources Energy Incorporated††		9.00			04/01/2015		45,000		48,825
Coffeyville Resources Energy Incorporated††		10.88			04/01/2017		100,000		113,500
Connacher Oil & Gas Limited		10.25			12/15/2015		55,000		60,019
Connacher Oil & Gas Limited††		11.75			07/15/2014		20,000		21,350
Consol Energy Incorporated		8.25			04/01/2020		165,000		183,150
Denbury Resources Incorporated		6.38			08/15/2021		25,000		25,313
Denbury Resources Incorporated		8.25			02/15/2020		25,000		27,625
El Paso Corporation		6.50			09/15/2020		45,000		50,852
El Paso Corporation		7.25			06/01/2018		75,000		88,243
El Paso Corporation		7.42			02/15/2037		90,000		103,933
El Paso Corporation		7.80			08/01/2031		100,000		121,465
Energy Transfer Equity		7.50			10/15/2020		300,000		327,000
Ferrellgas LP††		6.50			05/01/2021		50,000		49,813
Ferrellgas LP		9.13			10/01/2017		200,000		224,000
Forest Oil Corporation		7.25			06/15/2019		95,000		97,613
Forest Oil Corporation		8.50			02/15/2014		65,000		71,988
Hilcorp Energy Company††		7.75			11/01/2015		50,000		51,750
Holly Corporation		9.88			06/15/2017		220,000		246,950
Inergy LP††		6.88			08/01/2021		50,000		51,500
Inergy LP††		7.00			10/01/2018		50,000		51,500
Newfield Exploration Company		6.88			02/01/2020		55,000		58,300
OPTI Canada Incorporated		8.25			12/15/2014		50,000		24,875
Peabody Energy Corporation		7.88			11/01/2026		390,000		440,700
Penn Virginia Corporation		10.38			06/15/2016		10,000		11,250
Petrohawk Energy Corporation		7.88			06/01/2015		95,000		100,225
Petrohawk Energy Corporation		10.50			08/01/2014		60,000		68,100
Pioneer Natural Resource Company		7.50			01/15/2020		145,000		164,678
Plains Exploration & Production Company		8.63			10/15/2019		325,000		359,125

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Regency Energy Partners		6.88	%		12/01/2018	$	25,000		26,313
Sabine Pass LNG LP		7.25			11/30/2013		250,000		258,750
Sabine Pass LNG LP		7.50			11/30/2016		200,000		205,500
Sandridge Energy Incorporated		8.75			01/15/2020		90,000		97,875
Stallion Oilfield Holdings Incorporated		10.50			02/15/2015		44,000		47,960
Suburban Propane Partners LP		7.38			03/15/2020		25,000		26,750
Susser Holdings LLC		8.50			05/15/2016		125,000		135,000
Tesoro Corporation(i)		9.75			06/01/2019		90,000		102,150
									4,444,840

Financials: 7.19%

Capital Markets: 0.59%
ETRADE Financial Corporation¥*		12.50			11/30/2017		68,000		81,770
Nuveen Investments Incorporated		5.50			09/15/2015		200,000		180,000
Nuveen Investments Incorporated††		10.50			11/15/2015		200,000		211,000
Nuveen Investments Incorporated		10.50			11/15/2015		150,000		159,000
Oppenheimer Holdings Incorporated††		8.75			04/15/2018		50,000		52,750
									684,520

Commercial Banks: 0.68%
CapitalSource Incorporated††		12.75			07/15/2014		215,000		259,613
CIT Group Incorporated††		5.25			04/01/2014		75,000		76,396
CIT Group Incorporated††		6.63			04/01/2018		25,000		26,288
CIT Group Incorporated		7.00			05/01/2015		425,000		428,188
									790,485

Consumer Finance: 3.49%
American General Finance Corporation		5.40			12/01/2015		125,000		118,125
American General Finance Corporation		5.75			09/15/2016		50,000		46,375
American General Finance Corporation		6.50			09/15/2017		50,000		46,500
Calpine Construction Finance Corporation††		7.25			10/15/2017		325,000		338,000
Calpine Construction Finance Corporation††		8.00			06/01/2016		125,000		136,250
Clearwire Communications Finance Corporation††		12.00			12/01/2015		130,000		142,188
Ford Motor Credit Company		9.88			08/10/2011		235,000		238,347
GMAC LLC		6.75			12/01/2014		36,000		38,340
GMAC LLC		6.88			09/15/2011		6,000		6,060
GMAC LLC		6.88			08/28/2012		146,000		152,570
Homer City Funding LLC		8.73			10/01/2026		142,089		128,590
International Lease Finance Corporation		4.75			01/13/2012		140,000		142,100
International Lease Finance Corporation		5.30			05/01/2012		275,000		281,875
International Lease Finance Corporation		8.63			09/15/2015		75,000		83,156
International Lease Finance Corporation Series MTN		5.75			06/15/2011		50,000		50,000
JBS USA Finance Incorporated		11.63			05/01/2014		420,000		491,400
Nielsen Finance LLC Company††		7.75			10/15/2018		375,000		402,188
Nielsen Finance LLC Company		11.50			05/01/2016		49,000		57,943
Springleaf Finance Corporation		6.90			12/15/2017		125,000		118,750
Sprint Capital Corporation		6.88			11/15/2028		675,000		654,750
Sprint Capital Corporation		6.90			05/01/2019		120,000		125,400
Sprint Capital Corporation		8.38			03/15/2012		235,000		246,163
									4,045,070

Diversified Financial Services: 1.21%
Ally Financial Incorporated††		8.30			02/12/2015		825,000		919,875
Dunkin Finance Corporation		9.63			12/01/2018		38,000		38,332
General Motors Financial Company Incorporated††		6.75			06/01/2018		100,000		100,760
Leucadia National Corporation		8.13			09/15/2015		313,000		347,430
									1,406,397

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Insurance: 0.42%
Emigrant Bancorp Incorporated††(i)		6.25	%		06/15/2014	$	225,000		201,491
HUB International Holdings Incorporated††		10.25			06/15/2015		275,000		285,313
									486,804

REIT: 0.80%
Dupont Fabros Technology Incorporated		8.50			12/15/2017		565,000		622,206
Host Marriott Corporation		9.00			05/15/2017		30,000		33,900
MPT Operating Partnership LP††		6.88			05/01/2021		50,000		50,250
Omega Healthcare Investors Incorporated††		6.75			10/15/2022		125,000		124,688
Ventas Incorporated		9.00			05/01/2012		90,000		96,165
									927,209

Health Care: 1.32%
Health Care Equipment & Supplies: 0.24%
Biomet Incorporated¥		10.38			10/15/2017		60,000		66,600
Biomet Incorporated		11.63			10/15/2017		100,000		112,250
Fresenius Medical Care Incorporated††		5.75			02/15/2021		100,000		98,250
									277,100

Health Care Providers & Services: 0.97%
Apria Healthcare Group		11.25			11/01/2014		120,000		126,750
Aviv Healthcare Properties LP††		7.75			02/15/2019		100,000		102,250
Centene Corporation		5.75			06/01/2017		75,000		73,875
HCA Incorporated		9.25			11/15/2016		400,000		427,000
HCA Incorporated¥		9.63			11/15/2016		129,000		138,030
Health Management plc		6.13			04/15/2016		50,000		52,250
Healthsouth Corporation		7.25			10/01/2018		25,000		26,563
Healthsouth Corporation		7.75			09/15/2022		25,000		26,688
Sabra Health Care Corporation		8.13			11/01/2018		150,000		153,375
									1,126,781

Life Sciences Tools & Services: 0.04%
Community Health Systems Incorporated Series WI		8.88			07/15/2015		50,000		51,625

Pharmaceuticals: 0.07%
Mylan Incorporated††		6.00			11/15/2018		25,000		25,688
Mylan Incorporated††		7.63			07/15/2017		25,000		27,531
Mylan Incorporated††		7.88			07/15/2020		25,000		27,688
									80,907

Industrials: 2.11%

Aerospace & Defense: 0.88%
Alliant Techsystems Incorporated		6.75			04/01/2016		225,000		231,188
Digitalglobe Incorporated		10.50			05/01/2014		50,000		55,938
Geoeye Incorporated		9.63			10/01/2015		55,000		62,081
Hexcel Corporation		6.75			02/01/2015		53,000		54,126
Huntington Ingalls Industries Incorporated††		7.13			03/15/2021		25,000		26,094
Kratos Defense & Security Solutions Incorporated		10.00			06/01/2017		130,000		143,000
L-3 Communications Holdings Incorporated		6.38			10/15/2015		360,000		371,700
Wyle Services Corporation††		10.50			04/01/2018		70,000		74,725
									1,018,852

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Commercial Services & Supplies: 0.81%
Brickman Group Holdings††		9.13	%		11/01/2018	$	25,000		25,938
Casella Waste Systems Incorporated††		7.75			02/15/2019		25,000		25,313
Casella Waste Systems Incorporated		11.00			07/15/2014		220,000		248,600
Corrections Corporation of America		6.25			03/15/2013		60,000		60,450
Corrections Corporation of America		7.75			06/01/2017		95,000		104,025
Geo Group Incorporated		7.75			10/15/2017		100,000		107,250
Iron Mountain Incorporated		8.38			08/15/2021		155,000		165,850
KAR Holdings Incorporated		4.27			05/01/2014		75,000		74,063
KAR Holdings Incorporated		10.00			05/01/2015		25,000		26,313
NCO Group Incorporated		11.88			11/15/2014		125,000		108,750
									946,552

Industrial Conglomerates: 0.21%
Otter Tail Corporation		9.00			12/15/2016		215,000		238,919

Machinery: 0.14%
Cleaver-Brooks Incorporated††		12.25			05/01/2016		55,000		57,200
Columbus Mckinnon Corporation††		7.88			02/01/2019		75,000		77,625
Titan International Incorporated††		7.88			10/01/2017		25,000		26,875
									161,700

Professional Services: 0.02%
CDRT Merger Sub Incorporated††		8.13			06/01/2019		25,000		25,219

Road & Rail: 0.05%
RailAmerica Incorporated		9.25			07/01/2017		50,000		55,375

Information Technology: 1.92%

Communications Equipment: 0.26%
Lucent Technologies Incorporated		6.45			03/15/2029		155,000		142,213
Lucent Technologies Incorporated Series B		2.88			06/15/2025		160,000		158,200
									300,413

Computers & Peripherals: 0.18%
Seagate Technology HDD Holdings		6.80			10/01/2016		50,000		53,250
Seagate Technology HDD Holdings††		6.88			05/01/2020		25,000		25,188
Seagate Technology HDD Holdings††		7.00			11/01/2021		25,000		25,375
Seagate Technology HDD Holdings††		7.75			12/15/2018		100,000		105,250
									209,063

Electronic Equipment & Instruments: 0.88%
Jabil Circuit Incorporated		8.25			03/15/2018		620,000		714,550
Kemet Corporation		10.50			05/01/2018		160,000		180,400
Viasystem Group Incorporated††		12.00			01/15/2015		115,000		129,950
									1,024,900

Internet Software & Services: 0.09%
Equinix Incorporated		8.13			03/01/2018		95,000		102,600

IT Services: 0.51%
First Data Corporation		11.25			03/31/2016		75,000		75,188
Intcomex Incorporated		13.25			12/15/2014		105,000		109,200
SunGard Data Systems Incorporated		7.38			11/15/2018		50,000		51,000
SunGard Data Systems Incorporated		7.63			11/15/2020		25,000		25,938
SunGard Data Systems Incorporated		10.25			08/15/2015		225,000		234,000

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
IT Services (continued)
Unisys Corporation††		12.75	%		10/15/2014	$	47,000		55,519
Unisys Corporation††		14.25			09/15/2015		36,000		42,885
									593,730

Materials: 1.58%

Chemicals: 0.47%
Huntsman International LLC		5.50			06/30/2016		140,000		139,125
LBI Escrow Corporation††		8.00			11/01/2017		75,000		84,375
Lyondell Chemical Company		11.00			05/01/2018		240,241		270,571
Solutia Incorporated		7.88			03/15/2020		50,000		55,000
									549,071

Construction Materials: 0.14%
CPG International Incorporated††		10.88			09/01/2014		150,000		163,500

Containers & Packaging: 0.39%
Crown Americas LLC		7.63			05/15/2017		25,000		27,438
Exopack Holding Corporation		11.25			02/01/2014		280,000		287,000
Graham Packaging Company Incorporated		9.88			10/15/2014		100,000		103,750
Owens Brockway Glass Container Incorporated		7.38			05/15/2016		25,000		27,625
									445,813

Metals & Mining: 0.37%
Freeport-McMoRan Copper & Gold Incorporated		8.38			04/01/2017		295,000		323,394
Novelis Incorporated		8.38			12/15/2017		50,000		54,500
Novelis Incorporated		8.75			12/15/2020		50,000		55,250
									433,144

Paper & Forest Products: 0.21%
Clearwater Paper Corporation		10.63			06/15/2016		70,000		79,275
Georgia-Pacific Corporation		8.88			05/15/2031		125,000		160,156
									239,431

Telecommunication Services: 3.12%

Diversified Telecommunication Services: 2.00%
Citizens Communications Company		7.88			01/15/2027		475,000		467,875
Frontier Communications Corporation		8.13			10/01/2018		60,000		65,925
Frontier Communications Corporation		8.25			05/01/2014		140,000		155,050
GCI Incorporated††		6.75			06/01/2021		75,000		75,750
GCI Incorporated		8.63			11/15/2019		125,000		139,219
Intelsat Jackson Holdings Limited††		7.25			04/01/2019		50,000		50,375
Intelsat Jackson Holdings Limited††		7.50			04/01/2021		25,000		25,313
Intelsat Jackson Holdings Limited		9.50			06/15/2016		250,000		262,500
Qwest Corporation		7.50			06/15/2023		180,000		180,675
Qwest Corporation		7.63			08/03/2021		20,000		20,600
Qwest Corporation		8.88			03/15/2012		350,000		368,813
SBA Telecommunications Incorporated		8.00			08/15/2016		50,000		54,313
SBA Telecommunications Incorporated		8.25			08/15/2019		25,000		27,531
U.S. West Communications Incorporated		7.25			09/15/2025		125,000		133,438
Windstream Corporation		7.88			11/01/2017		265,000		289,844
									2,317,221

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Wireless Telecommunication Services: 1.12%
Allbritton Communications Company		8.00	%		05/15/2018	$	75,000		78,188
CC Holdings GS V LLC††		7.75			05/01/2017		50,000		54,938
Cricket Communications Incorporated Series I		7.75			05/15/2016		150,000		159,375
Crown Castle International Corporation		7.13			11/01/2019		10,000		10,650
MetroPCS Communications Incorporated		6.63			11/15/2020		175,000		174,563
MetroPCS Communications Incorporated		7.88			09/01/2018		50,000		53,813
Sprint Nextel Corporation Series D		7.38			08/01/2015		475,000		477,969
Syniverse Holdings Incorporated††		9.13			01/15/2019		275,000		294,594
									1,304,090

Utilities: 2.02%

Electric Utilities: 1.68%
Aquila Incorporated Step Bond		11.88			07/01/2012		794,000		881,126
Energy Future Holdings Corporation¥		12.00			11/01/2017		49,556		45,839
IPALCO Enterprises Incorporated††		5.00			05/01/2018		75,000		75,563
Mirant Mid-Atlantic LLC Series C		10.06			12/30/2028		438,432		491,044
NRG Energy Incorporated		7.38			01/15/2017		250,000		263,750
NRG Energy Incorporated		8.50			06/15/2019		185,000		191,475
									1,948,797

Gas Utilities: 0.04%
AmeriGas Partners LP		6.50			05/20/2021		50,000		51,500

Independent Power Producers & Energy Traders: 0.30%
Dynegy Holding Incorporated		7.63			10/15/2026		190,000		131,100
Reliant Energy Incorporated		9.24			07/02/2017		108,798		118,862
Reliant Energy Incorporated		9.68			07/02/2026		10,000		10,925
RRI Energy Incorporated		7.63			06/15/2014		50,000		52,250
RRI Energy Incorporated		7.88			06/15/2017		30,000		30,150
									343,287

Total Corporate Bonds and Notes (Cost $31,494,842)									33,896,697


	Yield					Shares
Preferred Stocks: 9.85%

Financials: 0.05%

Consumer Finance: 0.05%
GMAC Capital Trust I		8.13					2,200		57,772

Utilities: 9.80%

Electric Utilities: 5.84%
Great Plains Energy Incorporated		9.17					50,000		3,315,500
Interstate Power & Light Company		7.30					61,513		1,783,877
Union Electric Company		5.66					21,082		1,670,557
									6,769,934

Multi-Utilities: 3.96%
Scana Corporation		6.80					165,000		4,590,300

Total Preferred Stocks (Cost $10,833,975)									11,418,006

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name	Interest Rate			Maturity Date		Principal		Value
Term Loans: 3.16%
Arrowhead General Insurance Agency Incorporated		7.50	%		03/03/2017	$	100,000		99,167
Blackstone Group LP		7.75			11/02/2014		137,958		140,027
Capital Automotive LP		5.00			03/10/2017		296,920		296,365
CCM Merger Incorporated<		7.00			03/01/2017		150,000		152,157
Coinmach Corporation		3.25			11/20/2014		273,332		263,492
Fairpoint Communications Incorporated		6.50			01/22/2016		375,000		347,280
Federal Mogul Corporation		2.14			12/28/2015		16,762		16,133
Federal Mogul Corporation		2.15			12/29/2014		32,853		31,621
First Data Corporation		2.94			09/24/2014		70,394		65,766
First Data Corporation		2.94			09/24/2014		164,254		153,594
First Data Corporation		2.94			09/24/2014		240,789		225,198
Gray Television Incorporated		3.71			12/31/2014		71,630		71,031
HHI Holdings LLC		7.01			03/21/2017		100,000		99,750
Local TV Finance LLC		2.31			05/07/2013		120,356		117,734
Merisant Company(i)		7.50			01/08/2014		87,303		86,321
NCO Group Incorporated		8.00			11/15/2013		70,906		70,493
Newsday LLC		10.50			08/01/2013		365,000		387,510
Panolam Industries International(i)		8.25			12/31/2013		23,279		21,329
Springleaf Finance Corporation		5.50			05/05/2017		100,000		99,804
Texas Competitive Electric Holdings Company LLC		3.71			10/10/2014		568,328		483,079
Texas Competitive Electric Holdings Company LLC		4.74			10/10/2017		490,970		388,480
WASH Multifamily Laundry Systems LLC		7.00			08/28/2014		49,872		49,747

Total Term Loans (Cost $3,646,862)									3,666,078


				Expiration Date		Shares
Warrants: 0.00%

Utilities: 0.00%

Electric Utilities: 0.00%
10,000 China Hydroelectric Company ADR†					04/15/2018		10,000		1,970

Total Warrants (Cost $12,000)									1,970


				Maturity Date		Principal
Yankee Corporate Bonds and Notes: 0.90%

Consumer Discretionary: 0.07%

Media: 0.07%
Videotron Limited		9.13			04/15/2018	$	75,000		83,813

Energy: 0.39%

Oil, Gas & Consumable Fuels: 0.39%
General Maritime Corporation		12.00			11/15/2017		100,000		88,000
Griffin Coal Mining Company Limited††^^		0.00			12/31/2049		321,000		314,580
OPTI Canada Incorporated		7.88			12/15/2014		110,000		54,175
									456,755

Financials: 0.25%
Capital Markets: 0.05%
FMC Finance III SA		6.88			07/15/2017		50,000		53,188

Consumer Finance: 0.11%
Wind Acquisition Finance SA††		11.75			07/15/2017		110,000		127,875

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND


Security Name			Interest Rate			Maturity Date		Principal		Value e
Diversified Financial Services: 0.09%
Ship Finance International Limited				8.50	%		12/15/2013	$	105,000		106,050

Materials: 0.14%

Metals & Mining: 0.06%
Teck Resources Limited				10.75			05/15/2019		55,000		70,054

Paper & Forest Products: 0.08%
Sappi Limited††				7.50			06/15/2032		100,000		92,750

Telecommunication Services: 0.05%

Diversified Telecommunication Services: 0.01%
Global Crossing Limited				12.00			09/15/2015		5,000		5,838

Wireless Telecommunication Services: 0.04%
Digicel Group Limited††				12.00			04/01/2014		20,000		23,250
Intelsat Limited				11.25			06/15/2016		25,000		26,500
											49,750

Total Yankee Corporate Bonds and Notes (Cost $924,465)											1,046,073


Investment Companies: 0.01%
Eaton Vance Limited Duration Income Trust									627		10,371
New America High Income Fund Incorporated									355		3,763
Total Investment Companies (Cost $7,185)											14,134

			Yield					Shares
Short-Term Investments: 5.74%
Investment Companies: 5.74%
Wells Fargo Advantage Cash Investment Money Market Fund##(l)(u)				0.12					6,660,532		6,660,532

Total Short-Term Investments (Cost $6,660,532)											6,660,532

Total Investments in Securities (Cost $123,805,672)*	116.75	%									135,426,579
Other Assets and Liabilities, Net	(16.75	)									(19,432,293	)

Total Net Assets	100.00	%								$	115,994,286

††	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.

(i)	Illiquid security

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

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

^^	Security is currently in default with regards to scheduled interest and/or principal payments.

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

(l)	Investment in an affiliate.

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

†	Non-income earning security.

*	Cost for federal income tax purposes is $124,230,342 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	16,115,977
Gross unrealized depreciation		(4,919,740	)

Net unrealized appreciation (depreciation)	$	11,196,237

PORTFOLIO OF INVESTMENTS — May 31, 2011 (UNAUDITED)

WELLS FARGO ADVANTAGE UTILITIES AND HIGH INCOME FUND

NOTES TO PORTFOLIO OF INVESTMENTS – May 31, 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.

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.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

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.

As of May 31, 2011, the Fund had unfunded loan commitments of $206,188.

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 May 31, 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	$	78,723,089	$	0	$	0	$	78,723,089
Preferred stocks		11,418,006		0		0		11,418,006
Warrants		0		1,970		0		1,970
Investment companies		14,134		0		0		14,134
Corporate bonds and notes		0		33,275,866		620,831		33,896,697
Term loans		0		3,666,078		0		3,666,078
Yankee corporate bonds and notes		0		1,046,073		0		1,046,073
Short-term investments
Investment companies		6,660,532		0		0		6,660,532

	$	96,815,761	$	37,989,987	$	620,831	$	135,426,579

Transfers in and transfers out are recognized at the end of the reporting period. For the nine months ended May 31, 2011, the Fund did not have any significant transfers into/out of Level 1 and Level 2.

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


	Corporate bonds and notes
Balance as of August 31, 2010	$	0
Realized gains (losses)		0
Change in unrealized gains (losses)		0
Purchases		0
Sales		0
Transfers into Level 3		620,831
Transfers out of Level 3		0

Balance as of May 31, 2011	$	620,831

Change in unrealized gains (losses) included in earnings relating to securities still held at May 31, 2011	$	0

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

ABAG — Association of Bay Area Governments

ACB — Agricultural Credit Bank

ADR — American Depositary 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

ARM — Adjustable Rate Mortgages

AUD — Australian Dollar

BAN — Bond Anticipation Notes

BART — Bay Area Rapid Transit

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazil Real

CAD — Canadian Dollar

CDA — Community Development Authority

CDO — Collateralized Debt Obligation

CDSC — Contingent Deferred Sales Charge

CGIC — Capital Guaranty Insurance Company

CGY — Capital Guaranty Corporation

CHF — Swiss Franc

CIFG — CDC (Caisse des Dépôts et Consignations) IX IS Financial Guarantee

COP — Certificate of Participation

CP — Commercial Paper

CR — Custody Receipts

CTF — Common Trust Fund

DEM — Deutsche Mark

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

EDFA — Economic Development Finance Authority

ETET — Eagle Tax-Exempt Trust

ETF — Exchange-Traded Fund

EUR — Euro

FFCB — Federal Farm Credit Bank

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Authority

FHAG — Federal Housing Agency

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

FRF — French Franc

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 — Housing & Urban Development

HUF — Hungarian Forint

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Industrial Development Revenue

IEP — Irish Pound

JPY — Japanese Yen

KRW — Republic of Korea Won

LIBOR — London Interbank Offered Rate

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

MFMR — Multi-Family Mortgage Revenue

MMD — Municipal Market Data

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

NLG — Netherlands Guilder

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

PSFG — Public School Fund Guaranty

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

SEK — Swedish Krona

SFHR — Single Family Housing Revenue

SFMR — Single Family Mortgage Revenue

SGD — Singapore Dollar

SKK — Slovakian Koruna

SLMA — Student Loan Marketing Association

SPDR — Standard & Poor’s Depositary Receipts

STIT — Short-Term Investment Trust

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

USD — Unified School District

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: July 27, 2011

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 27, 2011

By:		/s/ Kasey L. Phillips

		Kasey L. Phillips
		Treasurer

Date: July 27, 2011