Edgar Filing: WELLS FARGO 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 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

Registrant is making a filing for Wells Fargo Utilities and High Income Fund.

Date of reporting period: May 31, 2016

ITEM 1.

INVESTMENTS


Wells Fargo Utilities and High Income Fund		Portfolio of investments — May 31, 2016 (unaudited)


Security name	Shares		Value

Common Stocks : 71.89%

Consumer Discretionary : 0.49%

Media : 0.49%
Vivendi SA		28,900	$	573,334

Energy : 2.05%

Oil, Gas & Consumable Fuels : 2.05%
Spectra Energy Corporation		75,000		2,389,500
Swift Energy Company †(i)		1,214		27,983
				2,417,483

Financials : 5.19%

Insurance : 5.19%
Poste Italiane SpA		800,000		6,124,027

Industrials : 2.81%

Air Freight & Logistics : 2.81%
Deutsche Post AG		113,482		3,310,057

Telecommunication Services : 13.20%

Diversified Telecommunication Services : 10.76%
BCE Incorporated		16,000		736,640
CenturyLink Incorporated		75,000		2,034,000
Deutsche Telekom AG		245,300		4,331,449
Orange SA		200,000		3,474,807
Verizon Communications Incorporated		41,291		2,101,712
				12,678,608

Wireless Telecommunication Services : 2.44%
Shenandoah Telecommunications Company		90,000		2,879,100

Utilities : 48.15%

Electric Utilities : 39.07%
Alliant Energy Corporation		8,000		296,400
American Electric Power Company Incorporated		70,000		4,531,100
Chesapeake Utilities Corporation		300		17,307
Duke Energy Corporation		30,514		2,387,110
Edison International		60,000		4,297,800
Endesa SA		180,000		3,701,120
Enel SpA		1,225,000		5,552,848
Entergy Corporation		1,000		75,920
Eversource Energy		90,000		4,971,600
Exelon Corporation		16,000		548,320
Great Plains Energy Incorporated		100,000		2,918,000
IDACORP Incorporated		25,000		1,830,250
NextEra Energy Incorporated		35,000		4,204,200
PNM Resources Incorporated		75,000		2,463,000
Red Electrica Corporacion SA		40,000		3,558,101
Spark Energy Incorporated Class A		36,700		1,104,303
Terna SpA		650,000		3,604,542
				46,061,921


Portfolio of investments — May 31, 2016 (unaudited)		Wells Fargo Utilities and High Income Fund


Security name	Shares		Value

Gas Utilities : 0.02%
New Jersey Resources Corporation		400	$	14,060
South Jersey Industries Incorporated		400		11,556
				25,616

Multi-Utilities : 5.92%
CenterPoint Energy Incorporated		50,000		1,126,500
Dominion Resources Incorporated		300		21,675
MDU Resources Group Incorporated		500		11,435
Public Service Enterprise Group Incorporated		50,000		2,237,500
Sempra Energy		19,900		2,131,688
TECO Energy Incorporated		50,000		1,377,000
Veolia Environnement SA		3,100		69,605
				6,975,403

Water Utilities : 3.14%
American Water Works Company Incorporated		50,000		3,705,000

Total Common Stocks (Cost $62,907,841)				84,750,549


	Interest rate			Maturity date	Principal

Corporate Bonds and Notes : 29.59%

Consumer Discretionary : 5.32%

Auto Components : 0.20%
Cooper Tire & Rubber Company (i)		7.63	%	3-15-2027	$	190,000	204,250
Goodyear Tire & Rubber Company		7.00		5-15-2022		25,000	26,844
							231,094

Distributors : 0.08%
LKQ Corporation		4.75		5-15-2023		100,000	98,250

Diversified Consumer Services : 0.41%
Service Corporation International		7.50		4-1-2027		351,000	410,670
Service Corporation International		7.63		10-1-2018		25,000	27,875
Service Corporation International		8.00		11-15-2021		40,000	46,800
							485,345

Hotels, Restaurants & Leisure : 1.11%
CCM Merger Incorporated 144A		9.13		5-1-2019		465,000	487,669
Greektown Holdings LLC 144A		8.88		3-15-2019		675,000	707,063
Hilton Worldwide Finance LLC		5.63		10-15-2021		15,000	15,534
Speedway Motorsports Incorporated		5.13		2-1-2023		100,000	102,000
							1,312,266

Household Durables : 0.23%
American Greetings Corporation		7.38		12-1-2021		150,000	153,375
Tempur Sealy International Incorporated 144A		5.50		6-15-2026		75,000	75,375
Tempur Sealy International Incorporated		5.63		10-15-2023		10,000	10,363
Tempur Sealy International Incorporated		6.88		12-15-2020		25,000	26,580
							265,693

Leisure Products : 0.04%
Vista Outdoor Incorporated 144A		5.88		10-1-2023		40,000	41,804


Wells Fargo Utilities and High Income Fund		Portfolio of investments — May 31, 2016 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Media : 2.48%
Altice US Finance I Corporation 144A		5.38	%	7-15-2023	$	200,000	$	203,576
Cablevision Systems Corporation		8.63		9-15-2017		145,000		154,606
CCO Holdings LLC		5.13		2-15-2023		50,000		50,875
CCO Holdings LLC 144A		5.13		5-1-2023		135,000		136,688
CCO Holdings LLC		5.25		9-30-2022		90,000		92,475
CCO Holdings LLC 144A		5.38		5-1-2025		335,000		340,025
CCO Holdings LLC 144A		5.50		5-1-2026		5,000		5,050
CCO Holdings LLC 144A		5.75		2-15-2026		275,000		281,875
CCO Holdings LLC 144A		5.88		4-1-2024		50,000		52,125
CCO Holdings LLC		6.63		1-31-2022		50,000		53,050
Cequel Communications Holdings I LLC 144A		5.13		12-15-2021		15,000		14,325
Cequel Communications Holdings I LLC 144A		5.13		12-15-2021		100,000		95,426
Cequel Communications Holdings I LLC 144A		7.75		7-15-2025		100,000		103,750
CSC Holdings LLC		7.88		2-15-2018		75,000		81,188
CSC Holdings LLC		8.63		2-15-2019		125,000		138,438
EMI Music Publishing 144A%%		7.63		6-15-2024		25,000		25,594
Gray Television Incorporated		7.50		10-1-2020		375,000		391,875
Lamar Media Corporation		5.88		2-1-2022		75,000		78,375
LIN Television Corporation		6.38		1-15-2021		25,000		26,063
Live Nation Entertainment Incorporated 144A		7.00		9-1-2020		50,000		52,456
National CineMedia LLC		6.00		4-15-2022		175,000		182,438
National CineMedia LLC		7.88		7-15-2021		100,000		104,250
Nexstar Broadcasting Group Incorporated 144A		6.13		2-15-2022		25,000		25,063
Nexstar Broadcasting Group Incorporated		6.88		11-15-2020		145,000		151,163
Outfront Media Capital Corporation		5.25		2-15-2022		15,000		15,244
Outfront Media Capital Corporation		5.88		3-15-2025		65,000		67,600
								2,923,593

Specialty Retail : 0.73%
ABC Supply Company Incorporated 144A		5.63		4-15-2021		40,000		41,500
ABC Supply Company Incorporated 144A		5.75		12-15-2023		50,000		52,000
Asbury Automotive Group Incorporated		6.00		12-15-2024		100,000		101,750
Century Intermediate Holding Company (PIK at 10.50%) 144A¥(i)		9.75		2-15-2019		15,000		15,225
Penske Auto Group Incorporated		5.38		12-1-2024		250,000		250,000
Penske Auto Group Incorporated		5.50		5-15-2026		25,000		24,813
Penske Auto Group Incorporated		5.75		10-1-2022		99,000		101,441
Sonic Automotive Incorporated		5.00		5-15-2023		70,000		68,775
Sonic Automotive Incorporated		7.00		7-15-2022		200,000		210,000
								865,504

Textiles, Apparel & Luxury Goods : 0.04%
Wolverine World Wide Company		6.13		10-15-2020		45,000		46,575

Consumer Staples : 0.39%

Beverages : 0.09%
Cott Beverages Incorporated		5.38		7-1-2022		50,000		50,188
Cott Beverages Incorporated		6.75		1-1-2020		60,000		62,700
								112,888

Food Products : 0.28%
B&G Foods Incorporated		4.63		6-1-2021		30,000		30,263
Darling Ingredients Incorporated		5.38		1-15-2022		15,000		15,525
Pilgrim’s Pride Corporation 144A		5.75		3-15-2025		85,000		85,691
Pinnacle Foods Incorporated 144A		5.63		5-1-2024		25,000		24,438
Prestige Brands Incorporated 144A		6.38		3-1-2024		10,000		10,525
Simmons Foods Incorporated 144A		7.88		10-1-2021		175,000		159,250
								325,692


Portfolio of investments — May 31, 2016 (unaudited)		Wells Fargo Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Household Products : 0.02%
Central Garden & Pet Company		6.13	%	11-15-2023	$	20,000	$	20,750

Energy : 6.94%

Energy Equipment & Services : 2.26%
Bristow Group Incorporated		6.25		10-15-2022		400,000		298,752
Cleaver Brooks Incorporated 144A		8.75		12-15-2019		40,000		39,500
Era Group Incorporated		7.75		12-15-2022		334,000		282,230
Hilcorp Energy Company 144A		5.00		12-1-2024		75,000		71,250
Hilcorp Energy Company 144A		5.75		10-1-2025		75,000		72,375
Hilcorp Energy Company 144A		7.63		4-15-2021		25,000		25,813
Hornbeck Offshore Services Incorporated		1.50		9-1-2019		100,000		57,438
Hornbeck Offshore Services Incorporated		5.00		3-1-2021		230,000		133,400
Hornbeck Offshore Services Incorporated		5.88		4-1-2020		235,000		142,763
NGPL PipeCo LLC 144A		7.12		12-15-2017		190,000		199,500
NGPL PipeCo LLC 144A		7.77		12-15-2037		950,000		933,375
NGPL PipeCo LLC 144A		9.63		6-1-2019		35,000		36,663
PHI Incorporated		5.25		3-15-2019		405,000		363,488
								2,656,547

Oil, Gas & Consumable Fuels : 4.68%
Alpha Natural Resources Incorporated (i)(s)		6.25		6-1-2021		50,000		375
Arch Coal Incorporated (s)		7.00		6-15-2019		100,000		1,500
Arch Coal Incorporated (s)		7.25		6-15-2021		50,000		750
Berry Petroleum Company LLC (s)		6.38		9-15-2022		225,000		54,000
Berry Petroleum Company LLC (s)		6.75		11-1-2020		25,000		6,000
Cheniere Energy Incorporated 144A		7.00		6-30-2024		50,000		51,250
Continental Resources Incorporated		5.00		9-15-2022		100,000		94,500
CSI Compressco LP		7.25		8-15-2022		125,000		101,250
Denbury Resources Incorporated		4.63		7-15-2023		375,000		253,125
Denbury Resources Incorporated		5.50		5-1-2022		30,000		21,300
Denbury Resources Incorporated		6.38		8-15-2021		160,000		113,800
El Paso Pipeline Partners Operating LLC		5.00		10-1-2021		125,000		129,141
Enable Midstream Partner LP		2.40		5-15-2019		275,000		250,556
Enable Midstream Partner LP		3.90		5-15-2024		125,000		105,901
Enable Midstream Partner LP		5.00		5-15-2044		25,000		18,673
Enlink Midstream LLC		4.15		6-1-2025		225,000		192,627
Enlink Midstream LLC		4.40		4-1-2024		250,000		218,304
Exterran Partners LP		6.00		4-1-2021		200,000		173,000
Kinder Morgan Incorporated		5.55		6-1-2045		75,000		68,976
Kinder Morgan Incorporated		6.50		9-15-2020		45,000		49,095
Kinder Morgan Incorporated		7.00		6-15-2017		75,000		78,284
Kinder Morgan Incorporated (i)		7.42		2-15-2037		90,000		89,154
Kinder Morgan Incorporated		7.80		8-1-2031		100,000		107,490
Overseas Shipholding Group Incorporated		8.13		3-30-2018		225,000		225,000
Rockies Express Pipeline LLC 144A		5.63		4-15-2020		260,000		264,550
Rockies Express Pipeline LLC 144A		6.00		1-15-2019		50,000		51,875
Rockies Express Pipeline LLC 144A		6.88		4-15-2040		425,000		414,375
Rockies Express Pipeline LLC 144A		7.50		7-15-2038		205,000		210,125
Rose Rock Midstream LP		5.63		7-15-2022		50,000		43,125
Rose Rock Midstream LP		5.63		11-15-2023		50,000		41,500
Sabine Oil & Gas Corporation (i)(s)		7.25		6-15-2019		50,000		1,250
Sabine Oil & Gas Corporation (i)(s)		7.50		9-15-2020		260,000		5,200
Sabine Pass Liquefaction LLC		5.63		2-1-2021		75,000		76,594
Sabine Pass Liquefaction LLC		5.63		4-15-2023		165,000		166,650
Sabine Pass Liquefaction LLC		5.63		3-1-2025		50,000		50,000
Sabine Pass Liquefaction LLC		5.75		5-15-2024		50,000		50,250
Sabine Pass Liquefaction LLC		6.25		3-15-2022		200,000		204,500
Sabine Pass LNG LP		6.50		11-1-2020		370,000		386,188
Sabine Pass LNG LP		7.50		11-30-2016		295,000		301,638
SemGroup Corporation		7.50		6-15-2021		250,000		236,875
Southwestern Energy Company		4.10		3-15-2022		75,000		61,125
Suburban Propane Partners LP		7.38		8-1-2021		26,000		27,040
Swift Energy Company (a)(i)(s)		7.13		6-1-2017		422,000		0


Wells Fargo Utilities and High Income Fund		Portfolio of investments — May 31, 2016 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Oil, Gas & Consumable Fuels (continued)
Swift Energy Company (a)(i)(s)		8.88	%	1-15-2020	$	75,000	$	0
Tesoro Logistics LP		6.13		10-15-2021		25,000		25,766
Tesoro Logistics LP		6.38		5-1-2024		25,000		25,750
Ultra Petroleum Corporation (s)144A		5.75		12-15-2018		35,000		18,725
Ultra Petroleum Corporation (s)144A		6.13		10-1-2024		675,000		361,125
Western Gas Partners LP		3.95		6-1-2025		25,000		22,547
Western Gas Partners LP		5.38		6-1-2021		25,000		25,168
Western Gas Partners LP		5.45		4-1-2044		50,000		43,449
								5,519,441

Financials : 5.31%

Banks : 0.30%
CIT Group Incorporated 144A		5.50		2-15-2019		100,000		104,500
CIT Group Incorporated 144A		6.63		4-1-2018		231,000		243,633
								348,133

Capital Markets : 0.50%
Jefferies Finance LLC 144A		6.88		4-15-2022		350,000		308,000
Jefferies Finance LLC 144A		7.38		4-1-2020		80,000		75,200
Jefferies Finance LLC 144A		7.50		4-15-2021		225,000		206,438
								589,638

Consumer Finance : 1.32%
Ally Financial Incorporated		5.75		11-20-2025		25,000		25,313
Ally Financial Incorporated		8.00		12-31-2018		75,000		81,844
Ally Financial Incorporated		8.00		3-15-2020		203,000		231,420
Ford Motor Credit Company LLC		8.00		12-15-2016		25,000		25,900
Homer City Generation LLC		8.73		10-1-2026		136,442		79,136
Navient Corporation		8.00		3-25-2020		175,000		179,813
SLM Corporation		8.45		6-15-2018		125,000		134,688
Springleaf Finance Corporation		5.75		9-15-2016		50,000		50,375
Springleaf Finance Corporation		6.00		6-1-2020		175,000		170,188
Springleaf Finance Corporation		6.50		9-15-2017		50,000		51,625
Springleaf Finance Corporation		6.90		12-15-2017		243,000		254,543
Springleaf Finance Corporation		7.75		10-1-2021		100,000		99,000
Springleaf Finance Corporation		8.25		12-15-2020		25,000		26,000
Springleaf Finance Corporation		8.25		10-1-2023		150,000		147,750
								1,557,595

Diversified Financial Services : 0.56%
Denali Borrower LLC 144A		5.63		10-15-2020		330,000		346,995
Infinity Acquisition LLC 144A(i)		7.25		8-1-2022		150,000		131,250
NewStar Financial Incorporated		7.25		5-1-2020		200,000		186,000
								664,245

Insurance : 0.34%
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13		7-15-2019		275,000		258,500
Hub International Limited 144A		7.88		10-1-2021		150,000		147,000
								405,500

Real Estate Management & Development : 0.21%
Onex Corporation 144A		7.75		1-15-2021		250,000		248,750


Portfolio of investments — May 31, 2016 (unaudited)		Wells Fargo Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

REITs : 2.08%
Crown Castle International Corporation		4.88	%	4-15-2022	$	35,000	$	38,067
Crown Castle International Corporation		5.25		1-15-2023		70,000		77,683
DuPont Fabros Technology Incorporated LP		5.63		6-15-2023		225,000		231,188
DuPont Fabros Technology Incorporated LP		5.88		9-15-2021		340,000		357,000
Equinix Incorporated		5.88		1-15-2026		25,000		26,063
ESH Hospitality Incorporated 144A		5.25		5-1-2025		275,000		266,750
Iron Mountain Incorporated 144A		4.38		6-1-2021		125,000		124,688
Iron Mountain Incorporated		5.75		8-15-2024		360,000		360,000
Iron Mountain Incorporated 144A		6.00		10-1-2020		20,000		21,100
Iron Mountain Incorporated		6.00		8-15-2023		267,000		279,015
Iron Mountain U.S. Holdings Company 144A		5.38		6-1-2026		100,000		98,750
Sabra Health Care Incorporated		5.38		6-1-2023		75,000		74,438
Sabra Health Care Incorporated		5.50		2-1-2021		105,000		108,938
The Geo Group Incorporated		5.13		4-1-2023		45,000		43,763
The Geo Group Incorporated		5.88		1-15-2022		210,000		213,150
The Geo Group Incorporated		5.88		10-15-2024		100,000		101,125
The Geo Group Incorporated		6.00		4-15-2026		25,000		25,250
								2,446,968

Health Care : 3.19%

Health Care Equipment & Supplies : 0.61%
Crimson Merger Sub Incorporated 144A		6.63		5-15-2022		320,000		261,200
Hill-Rom Holdings Incorporated 144A		5.75		9-1-2023		25,000		25,563
Hologic Incorporated 144A		5.25		7-15-2022		90,000		94,163
Kinetics Concepts Incorporated 144A		7.88		2-15-2021		175,000		187,737
Surgery Center Holdings Company 144A		8.88		4-15-2021		150,000		150,750
								719,413

Health Care Providers & Services : 1.96%
Acadia Healthcare Company Incorporated 144A		6.50		3-1-2024		20,000		20,756
Centene Corporation		5.75		6-1-2017		75,000		77,531
Centene Corporation 144A		6.13		2-15-2024		50,000		52,657
DaVita HealthCare Partners Incorporated		5.00		5-1-2025		35,000		34,694
DaVita HealthCare Partners Incorporated		5.75		8-15-2022		170,000		178,075
HCA Incorporated		5.88		3-15-2022		25,000		27,000
HCA Incorporated		6.50		2-15-2020		325,000		357,500
HealthSouth Corporation		5.75		11-1-2024		50,000		50,688
HealthSouth Corporation		5.75		9-15-2025		100,000		101,000
Mednax Incorporated 144A		5.25		12-1-2023		50,000		51,157
Molina Healthcare Incorporated 144A		5.38		11-15-2022		25,000		24,970
MPH Acquisition Holdings LLC 144A		6.63		4-1-2022		250,000		273,250
MPH Acquisition Holdings LLC 144A%%		7.13		6-1-2024		50,000		51,375
MPT Operating Partnership LP		6.38		2-15-2022		70,000		73,333
MPT Operating Partnership LP		6.38		3-1-2024		10,000		10,700
MPT Operating Partnership LP		6.88		5-1-2021		125,000		129,438
Select Medical Corporation		6.38		6-1-2021		405,000		389,813
Team Health Incorporated 144A		7.25		12-15-2023		200,000		214,500
Tenet Healthcare Corporation		6.00		10-1-2020		50,000		52,625
Vizient Incorporated 144A		10.38		3-1-2024		125,000		133,750
								2,304,812

Health Care Technology : 0.36%
Change Healthcare Holdings Incorporated 144A		6.00		2-15-2021		50,000		50,250
Change Healthcare Holdings Incorporated		11.00		12-31-2019		355,000		376,300
								426,550

Pharmaceuticals : 0.26%
Endo Finance LLC 144A		5.75		1-15-2022		65,000		58,338
Endo Finance LLC 144A		5.88		1-15-2023		50,000		43,125


Wells Fargo Utilities and High Income Fund		Portfolio of investments — May 31, 2016 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Pharmaceuticals (continued)
Endo Finance LLC 144A		6.00	%	2-1-2025	$	50,000	$	43,375
Endo Finance LLC 144A		7.75		1-15-2022		180,000		166,950
								311,788

Industrials : 1.56%

Airlines : 0.10%
Aviation Capital Group Corporation 144A		6.75		4-6-2021		100,000		113,250

Commercial Services & Supplies : 0.43%
Aramark Services Incorporated		5.13		1-15-2024		10,000		10,372
Covanta Holding Corporation		5.88		3-1-2024		185,000		184,075
Covanta Holding Corporation		6.38		10-1-2022		195,000		201,338
Covanta Holding Corporation		7.25		12-1-2020		110,000		114,125
								509,910

Construction & Engineering : 0.33%
AECOM		5.75		10-15-2022		15,000		15,488
AECOM		5.88		10-15-2024		200,000		208,000
United Rentals North America Incorporated		4.63		7-15-2023		90,000		89,325
United Rentals North America Incorporated		5.50		7-15-2025		75,000		73,594
								386,407

Professional Services : 0.01%
Ascent Capital Group Incorporated		4.00		7-15-2020		25,000		15,828

Trading Companies & Distributors : 0.69%
Ashtead Capital Incorporated 144A		6.50		7-15-2022		400,000		417,750
H&E Equipment Services Incorporated		7.00		9-1-2022		350,000		360,500
International Lease Finance Corporation 144A		7.13		9-1-2018		35,000		38,500
								816,750

Information Technology : 1.94%

Communications Equipment : 0.09%
CommScope Technologies Finance LLC 144A		6.00		6-15-2025		100,000		101,750

Electronic Equipment, Instruments & Components : 0.69%
Jabil Circuit Incorporated		8.25		3-15-2018		620,000		674,250
Zebra Technologies Corporation		7.25		10-15-2022		135,000		143,944
								818,194

Internet Software & Services : 0.11%
Infor Software Parent LLC		6.50		5-15-2022		50,000		45,875
Infor Software Parent LLC (PIK at 7.88%) 144A¥		7.13		5-1-2021		75,000		62,617
Zayo Group LLC		6.38		5-15-2025		25,000		26,000
								134,492

IT Services : 0.19%
First Data Corporation 144A		5.00		1-15-2024		40,000		39,975
First Data Corporation 144A		5.75		1-15-2024		20,000		20,000
First Data Corporation 144A		6.75		11-1-2020		152,000		159,980
								219,955


Portfolio of investments — May 31, 2016 (unaudited)		Wells Fargo Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Semiconductors & Semiconductor Equipment : 0.26%
Micron Technology Incorporated 144A		5.25	%	8-1-2023	$	25,000	$	21,188
Micron Technology Incorporated 144A		5.25		1-15-2024		75,000		63,000
Micron Technology Incorporated		5.50		2-1-2025		110,000		92,125
Micron Technology Incorporated 144A		5.63		1-15-2026		85,000		69,275
Micron Technology Incorporated		5.88		2-15-2022		65,000		59,150
								304,738

Software : 0.20%
Activision Blizzard Incorporated 144A		5.63		9-15-2021		45,000		47,250
Activision Blizzard Incorporated 144A		6.13		9-15-2023		10,000		10,888
Boxer Parent Company Incorporated (PIK at 9.75%) 144A¥		9.00		10-15-2019		200,000		145,500
SS&C Technologies Incorporated		5.88		7-15-2023		25,000		26,000
								229,638

Technology Hardware, Storage & Peripherals : 0.40%
NCR Corporation		5.88		12-15-2021		15,000		15,225
NCR Corporation		6.38		12-15-2023		450,000		459,729
								474,954

Materials : 0.66%

Chemicals : 0.02%
Celanese US Holdings LLC		5.88		6-15-2021		20,000		21,750

Containers & Packaging : 0.62%
Ball Corporation		5.25		7-1-2025		15,000		15,619
Berry Plastics Corporation		5.13		7-15-2023		50,000		50,375
Berry Plastics Corporation 144A		6.00		10-15-2022		65,000		66,788
Crown Cork & Seal Company Incorporated		7.38		12-15-2026		5,000		5,500
Crown Cork & Seal Company Incorporated (i)		7.50		12-15-2096		50,000		51,000
Owens-Brockway Glass Container Incorporated 144A		5.88		8-15-2023		50,000		53,000
Owens-Illinois Incorporated 144A		5.38		1-15-2025		50,000		50,438
Owens-Illinois Incorporated 144A		6.38		8-15-2025		250,000		266,250
Owens-Illinois Incorporated		7.80		5-15-2018		60,000		65,400
Sealed Air Corporation 144A		5.13		12-1-2024		75,000		77,063
Silgan Holdings Incorporated		5.00		4-1-2020		25,000		25,813
								727,246

Metals & Mining : 0.02%
Kaiser Aluminum Corporation 144A		5.88		5-15-2024		25,000		25,660

Telecommunication Services : 3.10%

Diversified Telecommunication Services : 1.13%
Citizens Communications Company		7.88		1-15-2027		25,000		20,750
Frontier Communications Corporation		8.13		10-1-2018		60,000		65,100
GCI Incorporated		6.75		6-1-2021		200,000		202,000
GCI Incorporated		6.88		4-15-2025		125,000		125,938
Level 3 Financing Incorporated		5.13		5-1-2023		75,000		75,281
Level 3 Financing Incorporated 144A		5.25		3-15-2026		50,000		49,875
Level 3 Financing Incorporated		5.38		8-15-2022		125,000		126,875
Level 3 Financing Incorporated		5.38		1-15-2024		50,000		50,875
Level 3 Financing Incorporated		5.38		5-1-2025		75,000		76,328
Level 3 Financing Incorporated		5.63		2-1-2023		65,000		66,381
Level 3 Financing Incorporated		6.13		1-15-2021		80,000		83,600
Qwest Corporation (i)		7.63		8-3-2021		20,000		20,400
SBA Communications Corporation		5.63		10-1-2019		10,000		10,363
Syniverse Holdings Incorporated		9.13		1-15-2019		650,000		318,500


Wells Fargo Utilities and High Income Fund		Portfolio of investments — May 31, 2016 (unaudited)


Security name	Interest rate			Maturity date	Principal		Value

Diversified Telecommunication Services (continued)
Windstream Corporation		6.38	%	8-1-2023	$	50,000	$	38,469
								1,330,735

Wireless Telecommunication Services : 1.97%
MetroPCS Wireless Incorporated		6.63		11-15-2020		240,000		247,848
SBA Communications Corporation		4.88		7-15-2022		100,000		100,250
SBA Communications Corporation		5.75		7-15-2020		100,000		103,000
Sprint Capital Corporation		6.88		11-15-2028		1,125,000		839,531
Sprint Capital Corporation		8.75		3-15-2032		200,000		161,500
Sprint Communications Incorporated 144A		9.00		11-15-2018		25,000		26,594
Sprint Corporation		7.13		6-15-2024		35,000		26,359
Sprint Corporation		7.63		2-15-2025		25,000		18,859
T-Mobile USA Incorporated		6.00		3-1-2023		25,000		26,063
T-Mobile USA Incorporated		6.13		1-15-2022		25,000		26,375
T-Mobile USA Incorporated		6.25		4-1-2021		30,000		31,425
T-Mobile USA Incorporated		6.38		3-1-2025		145,000		151,888
T-Mobile USA Incorporated		6.46		4-28-2019		10,000		10,169
T-Mobile USA Incorporated		6.50		1-15-2024		5,000		5,306
T-Mobile USA Incorporated		6.50		1-15-2026		25,000		26,422
T-Mobile USA Incorporated		6.54		4-28-2020		10,000		10,331
T-Mobile USA Incorporated		6.63		4-28-2021		75,000		78,844
T-Mobile USA Incorporated		6.63		4-1-2023		35,000		37,100
T-Mobile USA Incorporated		6.73		4-28-2022		305,000		319,869
T-Mobile USA Incorporated		6.84		4-28-2023		75,000		79,406
								2,327,139

Utilities : 1.18%

Electric Utilities : 0.19%
Otter Tail Corporation (i)		9.00		12-15-2016		215,000		221,936

Gas Utilities : 0.15%
AmeriGas Finance LLC		6.75		5-20-2020		175,000		180,906

Independent Power & Renewable Electricity Producers : 0.84%
Calpine Corporation 144A		5.88		1-15-2024		20,000		20,950
Calpine Corporation 144A		6.00		1-15-2022		40,000		41,950
Calpine Corporation 144A		7.88		1-15-2023		40,000		42,550
NSG Holdings LLC 144A		7.75		12-15-2025		336,093		360,460
Reliant Energy Incorporated (i)		9.24		7-2-2017		34,985		34,286
Reliant Energy Incorporated		9.68		7-2-2026		10,000		9,600
TerraForm Power Operating LLC 144A		5.88		2-1-2023		400,000		354,000
TerraForm Power Operating LLC 144A		6.13		6-15-2025		150,000		129,375
								993,171

Total Corporate Bonds and Notes (Cost $35,157,381)								34,883,243

Loans : 0.83%

Consumer Discretionary : 0.18%

Hotels, Restaurants & Leisure : 0.03%
CCM Merger Incorporated ±		4.50		8-8-2021		38,806		38,976

Specialty Retail : 0.15%
Focus Brands Incorporated ±		10.25		8-21-2018		176,935		176,492


Portfolio of investments — May 31, 2016 (unaudited)		Wells Fargo Utilities and High Income Fund


Security name	Interest rate			Maturity date	Principal		Value

Financials : 0.06%

Diversified Financial Services : 0.04%
American Beacon Advisors Incorporated ±(i)		9.75	%	3-3-2023	$	50,000	$	47,000

Insurance : 0.02%
Asurion LLC ±		8.50		3-3-2021		25,000		24,413

Health Care : 0.11%

Pharmaceuticals : 0.11%
Valeant Pharmaceuticals International Incorporated ±		4.75		12-11-2019		123,626		121,926

Industrials : 0.08%

Commercial Services & Supplies : 0.04%
W3 Company ±(i)		9.25		9-13-2020		19,950		7,980
WASH Multifamily Laundry Systems LLC ±		4.25		5-14-2022		25,338		25,084
WASH Multifamily Laundry Systems LLC ±		4.25		5-14-2022		4,437		4,393
WASH Multifamily Laundry Systems LLC ±		8.00		5-12-2023		1,490		1,449
WASH Multifamily Laundry Systems LLC ±(i)		8.00		5-14-2023		8,510		8,276
								47,182

Transportation Infrastructure : 0.04%
HGIM Corporation ±		5.50		6-18-2020		71,783		41,783

Information Technology : 0.02%

Technology Hardware, Storage & Peripherals : 0.02%
Peak 10 Incorporated ±(i)		8.25		6-17-2022		30,000		24,600

Utilities : 0.38%

Electric Utilities : 0.38%
Texas Competitive Electric Holdings LLC ±(s)		4.66		10-10-2016		1,471,940		450,090

Total Loans (Cost $2,003,554)								972,462


	Dividend yield				Shares
Preferred Stocks : 11.22%

Utilities : 11.22%

Electric Utilities : 10.20%
Alabama Power Company		6.45				74,084		1,986,377
Baltimore Gas & Electric Company		6.70				20,100		2,042,663
Baltimore Gas & Electric Company		6.99				31,310		3,182,859
Indianapolis Power & Light Company		5.65				28,811		2,936,022
Southern Company		6.25				23,000		625,600
The Connecticut Light & Power Company		5.28				12,000		617,626
The Connecticut Light & Power Company		6.56				12,000		632,626
								12,023,773

Multi-Utilities : 1.02%
Integrys Holding Incorporated ±		4.29				46,050		1,208,813

Total Preferred Stocks (Cost $13,024,612)								13,232,586


Wells Fargo Utilities and High Income Fund		Portfolio of investments — May 31, 2016 (unaudited)


Security name				Expiration date	Shares		Value

Warrants : 0.00%

Utilities : 0.00%

Gas Utilities : 0.00%
Kinder Morgan Incorporated †				5-25-2017		16,000	$	411

Total Warrants (Cost $30,480)								411


	Interest rate			Maturity date	Principal
Yankee Corporate Bonds and Notes : 2.04%

Energy : 0.42%

Oil, Gas & Consumable Fuels : 0.42%
Baytex Energy Corporation 144A		5.63	%	6-1-2024	$	25,000		19,375
Griffin Coal Mining Company Limited 144A(a)(i)(s)		9.50		12-1-2016		93,118		37,247
Teekay Corporation		8.50		1-15-2020		460,000		371,450
Teekay Corporation 144A		8.50		1-15-2020		75,000		60,563
								488,635

Financials : 0.03%

Banks : 0.03%
Nielsen Holding and Finance BV 144A		5.50		10-1-2021		30,000		31,200

Health Care : 0.39%

Pharmaceuticals : 0.39%
Mallinckrodt plc 144A		5.50		4-15-2025		50,000		45,125
Mallinckrodt plc 144A		5.63		10-15-2023		20,000		18,800
Valeant Pharmaceuticals International Incorporated 144A		5.63		12-1-2021		50,000		42,250
Valeant Pharmaceuticals International Incorporated 144A		5.88		5-15-2023		150,000		126,094
Valeant Pharmaceuticals International Incorporated 144A		6.13		4-15-2025		175,000		146,125
Valeant Pharmaceuticals International Incorporated 144A		7.50		7-15-2021		94,000		85,070
								463,464

Industrials : 0.22%

Building Products : 0.01%
Allegion plc		5.88		9-15-2023		15,000		15,863

Commercial Services & Supplies : 0.19%
GFL Environmental Incorporated 144A		7.88		4-1-2020		170,000		175,100
GFL Environmental Incorporated 144A		9.88		2-1-2021		50,000		53,250
								228,350

Machinery : 0.02%
Sensata Technologies BV 144A		5.00		10-1-2025		20,000		20,050

Materials : 0.33%

Containers & Packaging : 0.33%
Ardagh Finance Holdings SA (PIK at 8.63%) 144A¥		8.63		6-15-2019		118,292		121,841
Ardagh Packaging Finance plc 144A		7.25		5-15-2024		50,000		50,750
Ardagh Packaging Finance plc 144A		9.13		10-15-2020		210,000		220,080
								392,671


Portfolio of investments — May 31, 2016 (unaudited)		Wells Fargo Utilities and High Income Fund


Security name			Interest rate			Maturity date	Principal		Value

Telecommunication Services : 0.65%

Diversified Telecommunication Services : 0.61%
Intelsat Jackson Holdings SA				5.50	%	8-1-2023	$	545,000	$	350,163
Intelsat Jackson Holdings SA				7.25		4-1-2019		200,000		149,000
Intelsat Luxembourg SA				7.75		6-1-2021		125,000		37,188
Intelsat Luxembourg SA				8.13		6-1-2023		500,000		148,750
Virgin Media Finance plc 144A				5.38		4-15-2021		9,000		9,309
Virgin Media Finance plc 144A				6.38		4-15-2023		25,000		25,750
										720,160

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

Total Yankee Corporate Bonds and Notes (Cost $3,202,910)										2,410,393

Short-Term Investments : 3.24%

			Yield				Shares
Investment Companies : 3.24%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)##				0.41				3,823,048		3,823,048

Total Short-Term Investments (Cost $3,823,048)										3,823,048

Total investments in securities (Cost $120,149,826)*	118.81	%								140,072,692
Other assets and liabilities, net	(18.81	)								(22,178,955	)

Total net assets	100.00	%							$	117,893,737

†	Non-income-earning security

(i)

Illiquid security

144A

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

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

¥	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)

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

(a)

The security is fair valued in accordance with procedures approved by the Board of Trustees.

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

(l)

The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u)

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

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

*	Cost for federal income tax purposes is $120,872,422 and unrealized gains (losses) consists of:


Gross unrealized gains	$	24,547,443
Gross unrealized losses		(5,347,173	)

Net unrealized gains	$	19,200,270


Abbreviations:

LLC		Limited liability company
LP		Limited partnership
plc		Public limited company
REIT		Real estate investment trust

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

Notes to Portfolio of investments – May 31, 2016 (unaudited)

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market that day, the prior day’s price will be deemed “stale” and a fair value price will be determined in accordance with the Fund’s Valuation Procedures.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”).

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On May 31, 2016, such fair value pricing was not used in pricing foreign securities.

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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

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

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

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

When-issued transactions

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

Loans

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

Fair valuation measurements

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:


Level 1 –		quoted prices in active markets for identical securities
Level 2 –		other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)
Level 3 –		significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of May 31, 2016:


	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	573,334	$	0	$	0	$	573,334
Energy		2,417,483		0		0		2,417,483
Health care		6,124,027		0		0		6,124,027
Industrials		3,310,057		0		0		3,310,057
Telecommunication services		15,557,708		0		0		15,557,708
Utilities		56,767,940		0		0		56,767,940
Corporate bonds and notes		0		34,883,243		0		34,883,243
Loans		0		677,188		295,274		972,462
Preferred stocks
Utilities		0		13,232,586		0		13,232,586
Warrants
Utilities		0		411		0		411
Yankee corporate bonds and notes		0		2,373,146		37,247		2,410,393
Short-term investments
Investment companies		3,823,048		0		0		3,823,048

Total assets	$	88,573,597	$	51,166,574	$	332,521	$	140,072,692

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At May 31, 2016, common stocks with a market value of $1,986,377 were transferred from Level 1 to Level 2 because of a decrease in the market activity of these securities. The Fund had no material transfers into/out of Level 3.

ITEM 2.

CONTROLS AND PROCEDURES

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

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

SIGNATURES

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


Wells Fargo Utilities and High Income Fund

By:		/s/ Karla M. Rabusch

		Karla M. Rabusch
		President

Date: July 27, 2016

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 Utilities and High Income Fund

By:		/s/ Karla M. Rabusch

		Karla M. Rabusch
		President

Date: July 27, 2016

By:		/s/ Nancy Wiser

		Nancy Wiser
		Treasurer

Date: July 27, 2016