N-Q 1 d112069dnq.htm FORM N-Q Form N-Q

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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, 12th Floor, San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

 

 

C. David Messman

Wells Fargo Funds Management, LLC

525 Market Street, 12th 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

Date of reporting period: November 30, 2015

 

 

 

ITEM 1. INVESTMENTS

Wells Fargo Utilities and High Income Fund    Portfolio of investments — November 30, 2015 (unaudited)

 

Security name    Shares      Value  

Common Stocks : 60.69%

      

Consumer Discretionary : 3.72%

      

Media : 3.72%

      

Vivendi SA

      200,000       $ 4,211,407   
     

 

 

  

Energy : 6.23%

      

Oil, Gas & Consumable Fuels : 6.23%

      

EQT Corporation

      15,000         858,300   

Spectra Energy Corporation

      75,000         1,965,000   

The Williams Companies Incorporated

      100,000         3,656,000   

Veresen Incorporated

      75,000         588,566   
        7,067,866   
     

 

 

  

Industrials : 3.92%

      

Air Freight & Logistics : 3.87%

      

Deutsche Post AG

      150,000         4,384,417   
     

 

 

  

Construction & Engineering : 0.05%

      

Ameresco Incorporated Class A †

      9,000         61,470   
     

 

 

  

Telecommunication Services : 4.71%

      

Diversified Telecommunication Services : 2.79%

      

Alteva Incorporated

      100,000         459,000   

BCE Incorporated

      16,000         688,960   

Telefonica Deutschland Holding AG

      25,000         140,548   

Verizon Communications Incorporated

      41,291         1,876,676   
        3,165,184   
     

 

 

  

Wireless Telecommunication Services : 1.92%

      

Shenandoah Telecommunications Company

      45,000         2,172,600   
     

 

 

  

Utilities : 42.11%

      

Electric Utilities : 33.06%

      

American Electric Power Company Incorporated

      100,000         5,601,000   

Chesapeake Utilities Corporation

      300         15,987   

Duke Energy Corporation

      30,514         2,067,629   

Edison International

      75,000         4,452,000   

Endesa SA

      80,000         1,654,979   

Enel SpA

      400,000         1,764,015   

Entergy Corporation

      1,000         66,630   

Eversource Energy

      90,000         4,585,500   

Exelon Corporation

      16,000         436,960   

Great Plains Energy Incorporated

      175,000         4,723,250   

Hydro One Limited 144A†

      3,000         50,657   

IDACORP Incorporated

      25,000         1,701,000   

NextEra Energy Incorporated

      50,000         4,993,000   

Pepco Holdings Incorporated

      100         2,567   

PNM Resources Incorporated

      75,000         2,175,000   

Terna SpA

      650,000         3,200,289   
        37,490,463   
     

 

 

  

Gas Utilities : 0.47%

      

New Jersey Resources Corporation

      400         12,020   

Snam SpA

      100,000         508,200   

 

1

Portfolio of investments — November 30, 2015 (unaudited)    Wells Fargo Utilities and High Income Fund

 

Security name               Shares      Value  

Gas Utilities (continued)

           

South Jersey Industries Incorporated

           400       $ 9,184   
             529,404   
          

 

 

  

Multi-Utilities : 6.03%

           

Alliant Energy Corporation

           4,000         240,760   

CenterPoint Energy Incorporated

           50,000         847,500   

Dominion Resources Incorporated

           300         20,211   

MDU Resources Group Incorporated

           500         8,710   

Public Service Enterprise Group Incorporated

           50,000         1,955,000   

Sempra Energy

           19,900         1,974,677   

Suez Environnement Company SA

           25,000         473,995   

TECO Energy Incorporated

           50,000         1,316,000   
             6,836,853   
          

 

 

  

Water Utilities : 2.55%

           

American Water Works Company Incorporated

           50,000         2,888,000   
          

 

 

  

Total Common Stocks (Cost $53,366,560)

              68,807,664   
          

 

 

  
     Interest rate     Maturity date    Principal         

Corporate Bonds and Notes : 30.38%

           

Consumer Discretionary : 5.16%

           

Auto Components : 0.20%

           

Cooper Tire & Rubber Company (i)

      7.63 %    3-15-2027    $ 190,000         198,550   

Goodyear Tire & Rubber Company

      7.00      5-15-2022      25,000         27,031   
             225,581   
          

 

 

  

Distributors : 0.06%

           

LKQ Corporation

      4.75      5-15-2023      75,000         72,559   
          

 

 

  

Diversified Consumer Services : 0.47%

           

Monitronics International

      9.13      4-1-2020      25,000         18,750   

Service Corporation International

      7.00      6-15-2017      25,000         26,875   

Service Corporation International

      7.50      4-1-2027      351,000         408,915   

Service Corporation International

      7.63      10-1-2018      25,000         28,094   

Service Corporation International

      8.00      11-15-2021      40,000         47,000   
             529,634   
          

 

 

  

Hotels, Restaurants & Leisure : 1.41%

           

CCM Merger Incorporated 144A

      9.13      5-1-2019      465,000         488,223   

Greektown Holdings LLC 144A

      8.88      3-15-2019      600,000         616,500   

Hilton Worldwide Finance LLC

      5.63      10-15-2021      15,000         15,618   

Pinnacle Entertainment Incorporated

      7.50      4-15-2021      355,000         374,081   

Speedway Motorsports Incorporated

      5.13      2-1-2023      100,000         100,125   
             1,594,547   
          

 

 

  

Household Durables : 0.17%

           

American Greetings Corporation

      7.38      12-1-2021      150,000         156,938   

Tempur Sealy International Incorporated 144A

      5.63      10-15-2023      10,000         10,175   

Tempur Sealy International Incorporated

      6.88      12-15-2020      25,000         26,469   
             193,582   
          

 

 

  

Leisure Products : 0.03%

           

Vista Outdoor Incorporated 144A

      5.88      10-1-2023      40,000         41,100   
          

 

 

  

 

 

2

Wells Fargo Utilities and High Income Fund    Portfolio of investments — November 30, 2015 (unaudited)

 

Security name    Interest rate     Maturity date    Principal      Value  

Media : 2.43%

           

Altice US Finance I Corporation 144A

      5.38 %    7-15-2023    $ 25,000       $ 25,000   

Altice US Finance II Corporation 144A

      7.75      7-15-2025      75,000         72,188   

Cable One Incorporated 144A

      5.75      6-15-2022      25,000         25,063   

Cablevision Systems Corporation

      8.63      9-15-2017      145,000         152,975   

CCO Holdings LLC

      5.13      2-15-2023      50,000         49,725   

CCO Holdings LLC 144A

      5.13      5-1-2023      35,000         34,869   

CCO Holdings LLC

      5.25      9-30-2022      90,000         90,450   

CCO Holdings LLC 144A

      5.38      5-1-2025      335,000         332,488   

CCO Holdings LLC 144A

      5.88      5-1-2027      50,000         49,625   

CCO Holdings LLC

      6.63      1-31-2022      50,000         52,776   

CCO Holdings LLC

      7.38      6-1-2020      125,000         130,313   

CCOH Safari LLC 144A

      5.75      2-15-2026      125,000         125,625   

Cequel Communications Holdings I LLC 144A

      5.13      12-15-2021      100,000         92,375   

Cinemark USA Incorporated

      7.38      6-15-2021      75,000         78,750   

CSC Holdings LLC

      7.88      2-15-2018      75,000         78,750   

CSC Holdings LLC

      8.63      2-15-2019      125,000         134,688   

EchoStar DBS Corporation

      7.13      2-1-2016      50,000         50,395   

Gray Television Incorporated

      7.50      10-1-2020      500,000         518,750   

Lamar Media Corporation

      5.88      2-1-2022      75,000         78,563   

LIN Television Corporation

      6.38      1-15-2021      25,000         26,188   

Live Nation Entertainment Incorporated 144A

      7.00      9-1-2020      35,000         36,794   

National CineMedia LLC

      6.00      4-15-2022      155,000         160,425   

National CineMedia LLC

      7.88      7-15-2021      100,000         104,000   

Nexstar Broadcasting Group Incorporated 144A

      6.13      2-15-2022      25,000         24,250   

Nexstar Broadcasting Group Incorporated

      6.88      11-15-2020      145,000         147,719   

Outfront Media Capital Corporation

      5.25      2-15-2022      15,000         15,394   

Outfront Media Capital Corporation

      5.88      3-15-2025      65,000         66,869   
             2,755,007   
          

 

 

  

Specialty Retail : 0.39%

           

ABC Supply Company Incorporated 144A

      5.63      4-15-2021      40,000         40,700   

ABC Supply Company Incorporated 144A

      5.75      12-15-2023      25,000         25,375   

Century Intermediate Holding Company (PIK at 10.50%) 144A¥(i)

      9.75      2-15-2019      15,000         15,450   

Penske Auto Group Incorporated

      5.38      12-1-2024      85,000         86,063   

Penske Auto Group Incorporated

      5.75      10-1-2022      94,000         97,055   

Sonic Automotive Incorporated

      5.00      5-15-2023      70,000         67,025   

Sonic Automotive Incorporated

      7.00      7-15-2022      105,000         110,775   
             442,443   
          

 

 

  

Consumer Staples : 0.35%

           

Beverages : 0.08%

           

Cott Beverages Incorporated

      6.75      1-1-2020      60,000         62,250   

Cott Beverages Incorporated

      5.38      7-1-2022      25,000         24,313   
             86,563   
          

 

 

  

Food Products : 0.25%

           

B&G Foods Incorporated

      4.63      6-1-2021      30,000         29,625   

Darling Ingredients Incorporated

      5.38      1-15-2022      15,000         14,700   

Pilgrim’s Pride Corporation 144A

      5.75      3-15-2025      85,000         83,725   

Simmons Foods Incorporated 144A

      7.88      10-1-2021      175,000         160,125   
             288,175   
          

 

 

  

Household Products : 0.02%

           

Central Garden & Pet Company

      6.13      11-15-2023      20,000         20,350   
          

 

 

  

 

 

3

Portfolio of investments — November 30, 2015 (unaudited)    Wells Fargo Utilities and High Income Fund

 

Security name    Interest rate     Maturity date    Principal      Value  

Energy : 6.15%

           

Energy Equipment & Services : 2.38%

           

Bristow Group Incorporated

      6.25 %    10-15-2022    $ 380,000       $ 328,700   

Cleaver Brooks Incorporated 144A

      8.75      12-15-2019      40,000         38,800   

Era Group Incorporated

      7.75      12-15-2022      334,000         280,560   

Forum Energy Technologies Incorporated

      6.25      10-1-2021      65,000         56,875   

Gulfmark Offshore Incorporated

      6.38      3-15-2022      450,000         270,000   

Hilcorp Energy Company 144A

      5.00      12-1-2024      50,000         44,969   

Hilcorp Energy Company 144A

      5.75      10-1-2025      75,000         68,813   

Hornbeck Offshore Services Incorporated

      5.00      3-1-2021      230,000         176,813   

Hornbeck Offshore Services Incorporated

      5.88      4-1-2020      235,000         186,825   

NGPL PipeCo LLC 144A

      7.12      12-15-2017      190,000         167,675   

NGPL PipeCo LLC 144A

      7.77      12-15-2037      875,000         695,625   

NGPL PipeCo LLC 144A

      9.63      6-1-2019      35,000         30,450   

PHI Incorporated

      5.25      3-15-2019      405,000         345,348   

Pride International Incorporated

      8.50      6-15-2019      10,000         10,269   
             2,701,722   
          

 

 

  

Oil, Gas & Consumable Fuels : 3.77%

           

Alpha Natural Resources Incorporated

      6.25      6-1-2021      50,000         1,000   

Arch Coal Incorporated

      7.00      6-15-2019      100,000         2,125   

Arch Coal Incorporated

      7.25      6-15-2021      50,000         1,000   

Berry Petroleum Company LLC

      6.38      9-15-2022      225,000         90,000   

Berry Petroleum Company LLC

      6.75      11-1-2020      25,000         10,375   

CSI Compressco LP

      7.25      8-15-2022      125,000         100,547   

CVR Refining LLC

      6.50      11-1-2022      93,000         91,605   

Denbury Resources Incorporated

      4.63      7-15-2023      200,000         116,000   

Denbury Resources Incorporated

      5.50      5-1-2022      30,000         18,600   

Denbury Resources Incorporated

      6.38      8-15-2021      110,000         70,400   

Exterran Partners LP

      6.00      4-1-2021      200,000         173,000   

Kinder Morgan Incorporated

      6.50      9-15-2020      45,000         46,568   

Kinder Morgan Incorporated

      7.00      6-15-2017      50,000         52,125   

Kinder Morgan Incorporated (i)

      7.42      2-15-2037      90,000         87,270   

Kinder Morgan Incorporated

      7.80      8-1-2031      100,000         97,435   

Northern Tier Energy LLC

      7.13      11-15-2020      300,000         306,000   

Overseas Shipholding Group Incorporated

      7.50      2-15-2021      150,000         153,750   

Overseas Shipholding Group Incorporated

      8.13      3-30-2018      225,000         231,188   

Pioneer Natural Resources Company

      7.50      1-15-2020      145,000         164,045   

Rockies Express Pipeline LLC 144A

      5.63      4-15-2020      260,000         254,800   

Rockies Express Pipeline LLC 144A

      6.00      1-15-2019      50,000         49,500   

Rockies Express Pipeline LLC 144A

      6.88      4-15-2040      290,000         269,700   

Rockies Express Pipeline LLC 144A(i)

      7.50      7-15-2038      205,000         196,800   

Sabine Oil & Gas Corporation (i)(s)

      7.25      6-15-2019      50,000         3,500   

Sabine Oil & Gas Corporation (i)(s)

      7.50      9-15-2020      260,000         18,200   

Sabine Pass Liquefaction LLC

      5.63      2-1-2021      75,000         72,563   

Sabine Pass Liquefaction LLC

      5.63      4-15-2023      90,000         83,025   

Sabine Pass Liquefaction LLC

      5.75      5-15-2024      50,000         46,125   

Sabine Pass Liquefaction LLC

      6.25      3-15-2022      200,000         193,250   

Sabine Pass LNG LP

      6.50      11-1-2020      395,000         393,025   

Sabine Pass LNG LP

      7.50      11-30-2016      370,000         377,400   

SemGroup Corporation

      7.50      6-15-2021      250,000         231,250   

Suburban Propane Partners LP

      5.50      6-1-2024      20,000         18,932   

Suburban Propane Partners LP

      7.38      8-1-2021      26,000         27,105   

Swift Energy Company (i)

      7.13      6-1-2017      422,000         55,240   

Swift Energy Company (i)

      8.88      1-15-2020      75,000         9,375   

Ultra Petroleum Corporation 144A(i)

      5.75      12-15-2018      35,000         14,700   

Ultra Petroleum Corporation 144A(i)

      6.13      10-1-2024      375,000         140,625   
             4,268,148   
          

 

 

  

 

 

4

Wells Fargo Utilities and High Income Fund    Portfolio of investments — November 30, 2015 (unaudited)

 

Security name    Interest rate     Maturity date    Principal      Value  

Financials : 5.66%

           

Banks : 0.31%

           

CIT Group Incorporated 144A

      5.50 %    2-15-2019    $ 100,000       $ 104,750   

CIT Group Incorporated 144A

      6.63      4-1-2018      231,000         246,304   
             351,054   
          

 

 

  

Capital Markets : 0.54%

           

Jefferies Finance LLC 144A

      6.88      4-15-2022      350,000         318,500   

Jefferies Finance LLC 144A

      7.38      4-1-2020      80,000         77,500   

Jefferies Finance LLC 144A

      7.50      4-15-2021      225,000         213,075   
             609,075   
          

 

 

  

Consumer Finance : 1.81%

           

Ally Financial Incorporated

      5.75      11-20-2025      50,000         50,344   

Ally Financial Incorporated

      8.00      12-31-2018      100,000         111,370   

Ally Financial Incorporated

      8.00      3-15-2020      203,000         236,241   

Ford Motor Credit Company LLC

      8.00      12-15-2016      25,000         26,574   

Homer City Generation LLC

      8.73      10-1-2026      139,827         138,429   

Navient Corporation

      5.88      3-25-2021      40,000         36,600   

Navient Corporation

      8.00      3-25-2020      275,000         279,125   

SLM Corporation

      6.13      3-25-2024      140,000         120,750   

SLM Corporation

      7.25      1-25-2022      70,000         66,500   

SLM Corporation

      8.45      6-15-2018      125,000         131,250   

Springleaf Finance Corporation

      5.40      12-1-2015      140,000         140,000   

Springleaf Finance Corporation

      5.75      9-15-2016      50,000         50,750   

Springleaf Finance Corporation

      6.00      6-1-2020      175,000         174,017   

Springleaf Finance Corporation

      6.50      9-15-2017      50,000         51,625   

Springleaf Finance Corporation

      6.90      12-15-2017      243,000         253,328   

Springleaf Finance Corporation

      7.75      10-1-2021      37,000         39,220   

Springleaf Finance Corporation

      8.25      10-1-2023      135,000         147,150   
             2,053,273   
          

 

 

  

Diversified Financial Services : 0.62%

           

Denali Borrower LLC 144A

      5.63      10-15-2020      330,000         349,826   

Infinity Acquisition LLC 144A(i)

      7.25      8-1-2022      185,000         160,025   

NewStar Financial Incorporated

      7.25      5-1-2020      200,000         198,000   
             707,851   
          

 

 

  

Insurance : 0.32%

           

Hub Holdings LLC (PIK at 8.88%) 144A¥

      8.13      7-15-2019      225,000         216,000   

Hub International Limited 144A

      7.88      10-1-2021      150,000         144,000   
             360,000   
          

 

 

  

Real Estate Management & Development : 0.22%

           

Onex Corporation 144A

      7.75      1-15-2021      250,000         245,000   
          

 

 

  

REITs : 1.84%

           

Crown Castle International Corporation

      4.88      4-15-2022      35,000         35,909   

Crown Castle International Corporation

      5.25      1-15-2023      70,000         72,538   

DuPont Fabros Technology Incorporated LP

      5.63      6-15-2023      225,000         227,250   

DuPont Fabros Technology Incorporated LP

      5.88      9-15-2021      340,000         351,900   

Equinix Incorporated %%

      5.88      1-15-2026      25,000         25,375   

ESH Hospitality Incorporated 144A

      5.25      5-1-2025      200,000         197,500   

Iron Mountain Incorporated

      5.75      8-15-2024      400,000         397,000   

Iron Mountain Incorporated 144A

      6.00      10-1-2020      20,000         20,980   

Iron Mountain Incorporated

      6.00      8-15-2023      255,000         267,592   

Sabra Health Care Incorporated

      5.38      6-1-2023      50,000         51,063   

 

5

Portfolio of investments — November 30, 2015 (unaudited)    Wells Fargo Utilities and High Income Fund

 

Security name    Interest rate     Maturity date    Principal      Value  

REITs (continued)

           

Sabra Health Care Incorporated

      5.50 %    2-1-2021    $ 105,000       $ 108,281   

The Geo Group Incorporated

      5.13      4-1-2023      25,000         23,500   

The Geo Group Incorporated

      5.88      1-15-2022      205,000         202,181   

The Geo Group Incorporated

      5.88      10-15-2024      35,000         34,169   

The Geo Group Incorporated

      6.63      2-15-2021      70,000         71,138   
             2,086,376   
          

 

 

  

Health Care : 2.51%

           

Health Care Equipment & Supplies : 0.33%

           

Crimson Merger Sub Incorporated 144A

      6.63      5-15-2022      320,000         261,600   

Hill-Rom Holdings Incorporated 144A

      5.75      9-1-2023      25,000         25,469   

Hologic Incorporated 144A

      5.25      7-15-2022      90,000         93,600   
             380,669   
          

 

 

  

Health Care Providers & Services : 1.43%

           

Acadia Healthcare Company Incorporated

      5.63      2-15-2023      40,000         39,200   

Centene Corporation

      5.75      6-1-2017      75,000         77,625   

Community Health Systems Incorporated

      6.88      2-1-2022      5,000         4,838   

DaVita HealthCare Partners Incorporated

      5.00      5-1-2025      35,000         33,600   

DaVita HealthCare Partners Incorporated

      5.75      8-15-2022      170,000         176,163   

HCA Incorporated

      5.88      3-15-2022      25,000         26,781   

HCA Incorporated

      6.50      2-15-2020      325,000         359,531   

HealthSouth Corporation 144A

      5.75      11-1-2024      25,000         24,125   

HealthSouth Corporation

      5.75      11-1-2024      25,000         24,125   

HealthSouth Corporation 144A

      5.75      9-15-2025      100,000         95,750   

HealthSouth Corporation

      7.75      9-15-2022      64,000         66,400   

Molina Healthcare Incorporated 144A

      5.38      11-15-2022      25,000         25,125   

MPT Operating Partnership LP

      6.38      2-15-2022      70,000         72,800   

MPT Operating Partnership LP

      6.88      5-1-2021      125,000         130,313   

Select Medical Corporation

      6.38      6-1-2021      455,000         367,413   

Team Health Incorporated 144A

      7.25      12-15-2023      50,000         51,500   

Tenet Healthcare Corporation

      6.00      10-1-2020      50,000         53,125   
             1,628,414   
          

 

 

  

Health Care Technology : 0.40%

           

Emdeon Incorporated

      11.00      12-31-2019      355,000         372,750   

MedAssets Incorporated

      8.00      11-15-2018      75,000         76,594   
             449,344   
          

 

 

  

Pharmaceuticals : 0.35%

           

Endo Finance LLC 144A

      5.75      1-15-2022      65,000         62,075   

Endo Finance LLC 144A

      5.88      1-15-2023      50,000         47,250   

Endo Finance LLC 144A

      6.00      2-1-2025      50,000         47,500   

Endo Finance LLC 144A

      7.75      1-15-2022      180,000         181,350   

Pinnacle Incorporated 144A

      9.50      10-1-2023      50,000         55,625   
             393,800   
          

 

 

  

Industrials : 1.98%

           

Airlines : 0.10%

           

Aviation Capital Group Corporation 144A

      6.75      4-6-2021      100,000         112,750   
          

 

 

  

Commercial Services & Supplies : 0.78%

           

ADT Corporation

      4.13      6-15-2023      85,000         79,543   

ADT Corporation

      6.25      10-15-2021      300,000         313,875   

Berry Plastics Corporation 144A

      6.00      10-15-2022      15,000         15,488   

Covanta Holding Corporation

      5.88      3-1-2024      160,000         156,600   

 

6

Wells Fargo Utilities and High Income Fund    Portfolio of investments — November 30, 2015 (unaudited)

 

Security name    Interest rate     Maturity date    Principal      Value  

Commercial Services & Supplies (continued)

           

Covanta Holding Corporation

      6.38 %    10-1-2022    $ 195,000       $ 202,313   

Covanta Holding Corporation

      7.25      12-1-2020      110,000         114,606   
             882,425   
          

 

 

  

Construction & Engineering : 0.19%

           

AECOM

      5.75      10-15-2022      15,000         15,478   

AECOM

      5.88      10-15-2024      200,000         202,500   
             217,978   
          

 

 

  

Professional Services : 0.01%

           

Ascent Capital Group Incorporated

      4.00      7-15-2020      25,000         16,141   
          

 

 

  

Trading Companies & Distributors : 0.90%

           

Ashtead Capital Incorporated 144A

      6.50      7-15-2022      350,000         365,750   

H&E Equipment Services Incorporated

      7.00      9-1-2022      450,000         451,125   

International Lease Finance Corporation 144A

      7.13      9-1-2018      35,000         38,413   

United Rentals North America Incorporated

      4.63      7-15-2023      90,000         89,438   

United Rentals North America Incorporated

      5.50      7-15-2025      75,000         75,000   
             1,019,726   
          

 

 

  

Information Technology : 2.38%

           

Communications Equipment : 0.06%

           

CommScope Technologies Finance LLC 144A

      6.00      6-15-2025      75,000         71,813   
          

 

 

  

Electronic Equipment, Instruments & Components : 0.74%

           

Jabil Circuit Incorporated

      8.25      3-15-2018      620,000         691,300   

Zebra Technologies Corporation

      7.25      10-15-2022      135,000         144,450   
             835,750   
          

 

 

  

Internet Software & Services : 0.09%

           

Infor Software Parent LLC 144A

      6.50      5-15-2022      50,000         44,375   

Infor Software Parent LLC (PIK at 7.88%) 144A¥

      7.13      5-1-2021      75,000         58,219   
             102,594   
          

 

 

  

IT Services : 0.81%

           

Audatex North America Incorporated 144A

      6.00      6-15-2021      225,000         226,969   

Audatex North America Incorporated 144A

      6.13      11-1-2023      140,000         141,050   

First Data Corporation 144A

      5.00      1-15-2024      20,000         20,000   

First Data Corporation 144A

      5.75      1-15-2024      20,000         20,000   

First Data Corporation 144A

      6.75      11-1-2020      152,000         159,790   

First Data Corporation 144A

      7.00      12-1-2023      25,000         25,344   

SunGard Data Systems Incorporated

      7.38      11-15-2018      253,000         257,665   

SunGard Data Systems Incorporated

      7.63      11-15-2020      60,000         62,288   
             913,106   
          

 

 

  

Semiconductors & Semiconductor Equipment : 0.14%

           

Micron Technology Incorporated 144A

      5.25      8-1-2023      25,000         23,500   

Micron Technology Incorporated 144A

      5.25      1-15-2024      25,000         23,250   

Micron Technology Incorporated

      5.50      2-1-2025      50,000         46,375   

Micron Technology Incorporated

      5.88      2-15-2022      65,000         65,372   
             158,497   
          

 

 

  

 

 

7

Portfolio of investments — November 30, 2015 (unaudited)    Wells Fargo Utilities and High Income Fund

 

Security name    Interest rate     Maturity date    Principal      Value  

Software : 0.17%

           

Activision Blizzard Incorporated 144A

      5.63 %    9-15-2021    $ 45,000       $ 47,391   

Activision Blizzard Incorporated 144A

      6.13      9-15-2023      10,000         10,913   

Boxer Parent Company Incorporated (PIK at 9.75%) 144A¥

      9.00      10-15-2019      175,000         128,406   

SS&C Technologies Incorporated 144A

      5.88      7-15-2023      5,000         5,188   
             191,898   
          

 

 

  

Technology Hardware, Storage & Peripherals : 0.37%

           

NCR Corporation

      5.88      12-15-2021      15,000         14,738   

NCR Corporation

      6.38      12-15-2023      408,000         407,490   
             422,228   
          

 

 

  

Materials : 0.52%

           

Chemicals : 0.02%

           

Celanese US Holdings LLC

      5.88      6-15-2021      20,000         21,200   
          

 

 

  

Containers & Packaging : 0.50%

           

Ball Corporation

      5.25      7-1-2025      15,000         15,113   

Crown Americas LLC

      6.25      2-1-2021      20,000         20,675   

Crown Cork & Seal Company Incorporated

      7.38      12-15-2026      5,000         5,450   

Crown Cork & Seal Company Incorporated (i)

      7.50      12-15-2096      50,000         46,125   

Owens-Brockway Glass Container Incorporated 144A

      5.88      8-15-2023      50,000         52,000   

Owens-Brockway Glass Container Incorporated 144A

      6.38      8-15-2025      200,000         208,250   

Owens-Brockway Glass Container Incorporated 144A

      5.38      1-15-2025      50,000         49,063   

Owens-Illinois Incorporated

      7.80      5-15-2018      60,000         66,600   

Sealed Air Corporation 144A

      5.13      12-1-2024      75,000         76,688   

Silgan Holdings Incorporated

      5.00      4-1-2020      25,000         25,531   
             565,495   
          

 

 

  

Telecommunication Services : 3.43%

           

Diversified Telecommunication Services : 1.38%

           

Citizens Communications Company

      7.88      1-15-2027      25,000         20,875   

Frontier Communications Corporation

      8.13      10-1-2018      60,000         62,775   

GCI Incorporated

      6.75      6-1-2021      170,000         174,675   

GCI Incorporated

      6.88      4-15-2025      100,000         103,500   

Level 3 Financing Incorporated

      5.63      2-1-2023      65,000         65,488   

Level 3 Financing Incorporated 144A

      5.13      5-1-2023      75,000         74,438   

Level 3 Financing Incorporated

      5.38      8-15-2022      125,000         125,844   

Level 3 Financing Incorporated 144A

      5.38      1-15-2024      50,000         50,063   

Level 3 Financing Incorporated 144A

      5.38      5-1-2025      75,000         74,531   

Level 3 Financing Incorporated

      6.13      1-15-2021      80,000         83,841   

Level 3 Financing Incorporated

      7.00      6-1-2020      15,000         15,844   

Qwest Corporation (i)

      7.63      8-3-2021      20,000         20,925   

Syniverse Holdings Incorporated

      9.13      1-15-2019      600,000         372,000   

Windstream Corporation

      6.38      8-1-2023      50,000         37,000   

Windstream Corporation

      7.88      11-1-2017      265,000         276,925   
             1,558,724   
          

 

 

  

Wireless Telecommunication Services : 2.05%

           

MetroPCS Wireless Incorporated

      6.63      11-15-2020      240,000         247,200   

SBA Communications Corporation

      4.88      7-15-2022      85,000         84,469   

SBA Communications Corporation

      5.63      10-1-2019      10,000         10,400   

SBA Communications Corporation

      5.75      7-15-2020      100,000         104,377   

Sprint Capital Corporation

      6.88      11-15-2028      1,100,000         792,000   

Sprint Capital Corporation

      8.75      3-15-2032      250,000         193,125   

Sprint Communications Incorporated 144A

      9.00      11-15-2018      25,000         27,000   

Sprint Communications Incorporated

      11.50      11-15-2021      25,000         23,875   

Sprint Corporation

      7.13      6-15-2024      70,000         53,944   

Sprint Corporation

      7.63      2-15-2025      25,000         19,641   

 

8

Wells Fargo Utilities and High Income Fund    Portfolio of investments — November 30, 2015 (unaudited)

 

Security name    Interest rate     Maturity date    Principal      Value  

Wireless Telecommunication Services (continued)

           

Sprint Corporation

      7.88 %    9-15-2023    $ 50,000       $ 40,250   

T-Mobile USA Incorporated

      6.50      1-15-2026      15,000         14,981   

T-Mobile USA Incorporated

      6.00      3-1-2023      25,000         25,125   

T-Mobile USA Incorporated

      6.13      1-15-2022      5,000         5,103   

T-Mobile USA Incorporated

      6.25      4-1-2021      30,000         30,750   

T-Mobile USA Incorporated

      6.38      3-1-2025      135,000         134,325   

T-Mobile USA Incorporated

      6.46      4-28-2019      10,000         10,275   

T-Mobile USA Incorporated

      6.50      1-15-2024      5,000         5,038   

T-Mobile USA Incorporated

      6.54      4-28-2020      10,000         10,325   

T-Mobile USA Incorporated

      6.63      4-1-2023      35,000         35,898   

T-Mobile USA Incorporated

      6.63      4-28-2021      65,000         67,600   

T-Mobile USA Incorporated

      6.73      4-28-2022      305,000         315,675   

T-Mobile USA Incorporated

      6.84      4-28-2023      75,000         77,156   
             2,328,532   
          

 

 

  

Utilities : 2.24%

           

Electric Utilities : 1.43%

           

ComEd Financing III

      6.35      3-15-2033      1,340,000         1,390,911   

Otter Tail Corporation (i)

      9.00      12-15-2016      215,000         230,510   
             1,621,421   
          

 

 

  

Gas Utilities : 0.27%

           

AmeriGas Finance LLC

      6.75      5-20-2020      175,000         179,624   

AmeriGas Finance LLC

      7.00      5-20-2022      125,000         128,750   
             308,374   
          

 

 

  

Independent Power & Renewable Electricity Producers : 0.54%

  

        

Calpine Corporation 144A

      5.88      1-15-2024      20,000         20,650   

Calpine Corporation 144A

      6.00      1-15-2022      40,000         41,500   

Calpine Corporation 144A

      7.88      1-15-2023      40,000         42,450   

NSG Holdings LLC 144A

      7.75      12-15-2025      328,050         360,035   

Reliant Energy Incorporated (i)

      9.24      7-2-2017      34,985         35,510   

Reliant Energy Incorporated

      9.68      7-2-2026      10,000         10,200   

TerraForm Power Operating LLC 144A

      5.88      2-1-2023      35,000         26,075   

TerraForm Power Operating LLC 144A

      6.13      6-15-2025      100,000         71,000   
             607,420   
          

 

 

  

Total Corporate Bonds and Notes (Cost $35,843,993)

              34,440,339   
          

 

 

  

Loans : 1.72%

           

Consumer Discretionary : 0.78%

           

Diversified Consumer Services : 0.04%

           

CCM Merger Incorporated ±

      4.50      8-8-2021      39,836         39,571   
          

 

 

  

Media : 0.58%

           

Learfield Communications Incorporated ±

      8.75      10-9-2021      212,434         209,779   

TWCC Holdings Corporation ±

      7.00      6-26-2020      455,000         453,294   
             663,073   
          

 

 

  

Specialty Retail : 0.16%

           

Focus Brands Incorporated ±

      10.25      8-21-2018      176,935         176,492   
          

 

 

  

 

 

9

Portfolio of investments — November 30, 2015 (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 ±

      9.75 %    3-3-2023    $ 50,000       $ 49,500   
          

 

 

  

Insurance : 0.02%

           

Asurion LLC ±

      8.50      3-3-2021      25,000         21,988   
          

 

 

  

Industrials : 0.30%

           

Commercial Services & Supplies : 0.17%

           

Interactive Data Corporation ±

      4.75      5-2-2021      138,250         137,918   

W3 Company ±(i)

      9.25      9-13-2020      19,950         11,372   

WASH Multifamily Laundry Systems LLC ±

      4.25      5-14-2022      29,925         29,234   

WASH Multifamily Laundry Systems LLC ±

      8.00      5-12-2023      1,490         1,431   

WASH Multifamily Laundry Systems LLC ±

      8.00      5-14-2023      8,510         8,169   
             188,124   
          

 

 

  

Transportation Infrastructure : 0.13%

           

HGIM Corporation ±

      5.50      6-18-2020      227,408         148,336   
          

 

 

  

Information Technology : 0.03%

           

Technology Hardware, Storage & Peripherals : 0.03%

           

Peak 10 Incorporated ±(i)

      8.25      6-17-2022      30,000         28,200   
          

 

 

  

Telecommunication Services : 0.13%

           

Diversified Telecommunication Services : 0.13%

           

nTelos Incorporated ±

      5.75      11-9-2019      153,811         152,657   
          

 

 

  

Utilities : 0.42%

           

Electric Utilities : 0.42%

           

Texas Competitive Electric Holdings Company LLC ±(s)

      4.66      10-10-2016      1,471,940         476,805   
          

 

 

  

Total Loans (Cost $2,941,019)

              1,944,746   
          

 

 

  
     Dividend yield          Shares         

Preferred Stocks : 18.34%

           

Financials : 0.08%

           

Banks : 0.08%

           

GMAC Capital Trust I ±

      1.99           3,457         88,154   
          

 

 

  

Utilities : 18.26%

           

Electric Utilities : 17.79%

           

Alabama Power Company

      6.45           50,000         1,375,000   

Baltimore Gas & Electric Company

      6.70           20,100         2,035,125   

Baltimore Gas & Electric Company

      6.99           31,310         3,183,836   

Entergy Arkansas Incorporated

      4.90           44,335         1,098,178   

Entergy Louisiana LLC

      4.70           248,483         5,961,107   

Indianapolis Power & Light Company

      5.65           28,811         2,915,313   

NextEra Energy Capital Holding Incorporated Series I

      5.13           44,000         1,078,000   

Southern Company

      6.25           50,000         1,325,000   

The Connecticut Light & Power Company

      5.28           12,000         576,000   

The Connecticut Light & Power Company

      6.56           12,000         622,500   
             20,170,059   
          

 

 

  

 

 

10

Wells Fargo Utilities and High Income Fund    Portfolio of investments — November 30, 2015 (unaudited)

 

Security name    Dividend yield          Shares      Value  

Multi-Utilities : 0.47%

           

Integrys Holding Incorporated ±

      1.47 %         21,250       $ 541,875   
          

 

 

  

Total Preferred Stocks (Cost $19,887,895)

  

      20,800,088   
          

 

 

  
           Expiration date              

Warrants : 0.00%

           

Utilities : 0.00%

           

Gas Utilities : 0.00%

           

Kinder Morgan Incorporated †

      5-25-2017      16,000         4,800   
          

 

 

  

Total Warrants (Cost $30,480)

  

      4,800   
          

 

 

  
     Interest rate     Maturity date    Principal         

Yankee Corporate Bonds and Notes : 2.44%

           

Energy : 0.47%

           

Oil, Gas & Consumable Fuels : 0.47%

           

Baytex Energy Corporation 144A

      5.63      6-1-2024    $ 25,000         20,438   

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      360,000         352,796   

Teekay Corporation 144A

      8.50      1-15-2020      125,000         122,499   
             532,980   
          

 

 

  

Financials : 0.03%

           

Banks : 0.03%

           

Nielsen Holding and Finance BV 144A

      5.50      10-1-2021      30,000         30,600   
          

 

 

  

Health Care : 0.47%

           

Pharmaceuticals : 0.47%

           

Mallinckrodt plc 144A

      5.50      4-15-2025      50,000         42,375   

Mallinckrodt plc 144A

      5.63      10-15-2023      20,000         17,250   

Valeant Pharmaceuticals International Incorporated 144A

      5.63      12-1-2021      5,000         4,363   

Valeant Pharmaceuticals International Incorporated 144A

      5.88      5-15-2023      75,000         64,875   

Valeant Pharmaceuticals International Incorporated 144A

      6.13      4-15-2025      30,000         26,100   

Valeant Pharmaceuticals International Incorporated 144A

      6.75      8-15-2018      50,000         49,000   

Valeant Pharmaceuticals International Incorporated 144A

      7.50      7-15-2021      350,000         329,000   
             532,963   
          

 

 

  

Industrials : 0.16%

           

Building Products : 0.01%

           

Allegion plc

      5.88      9-15-2023      15,000         15,525   
          

 

 

  

Commercial Services & Supplies : 0.13%

           

GFL Environmental Incorporated 144A

      7.88      4-1-2020      145,000         146,450   
          

 

 

  

Machinery : 0.02%

           

Sensata Technologies BV 144A

      5.00      10-1-2025      20,000         18,900   
          

 

 

  

Materials : 0.53%

           

Containers & Packaging : 0.20%

           

Ardagh Finance Holdings SA (PIK at 8.63%) 144A¥

      8.63      6-15-2019      4,115         4,126   

 

11

Portfolio of investments — November 30, 2015 (unaudited)    Wells Fargo Utilities and High Income Fund

 

Security name    Interest rate     Maturity date    Principal      Value  

Containers & Packaging (continued)

           

Ardagh Packaging Finance plc 144A

      9.13 %    10-15-2020    $ 210,000       $ 220,238   
             224,364   
          

 

 

  

Metals & Mining : 0.25%

           

ArcelorMittal SA

      7.25      2-25-2022      25,000         22,047   

Novelis Incorporated

      8.38      12-15-2017      100,000         98,750   

Novelis Incorporated

      8.75      12-15-2020      175,000         170,188   
             290,985   
          

 

 

  

Paper & Forest Products : 0.08%

           

Sappi Limited 144A(i)

      7.50      6-15-2032      100,000         92,250   
          

 

 

  

Telecommunication Services : 0.78%

           

Diversified Telecommunication Services : 0.74%

           

Intelsat Jackson Holdings SA

      5.50      8-1-2023      545,000         407,728   

Intelsat Jackson Holdings SA

      7.25      10-15-2020      50,000         41,750   

Intelsat Jackson Holdings SA

      7.50      4-1-2021      150,000         124,500   

Intelsat Luxembourg SA

      7.75      6-1-2021      125,000         48,125   

Intelsat Luxembourg SA

      8.13      6-1-2023      475,000         178,125   

Virgin Media Finance plc 144A

      5.38      4-15-2021      9,000         9,270   

Virgin Media Finance plc 144A

      6.38      4-15-2023      25,000         25,563   
             835,061   
          

 

 

  

Wireless Telecommunication Services : 0.04%

           

Telesat Canada Incorporated 144A

      6.00      5-15-2017      50,000         50,250   
          

 

 

  

Total Yankee Corporate Bonds and Notes (Cost $3,442,931)

  

      2,770,328   
          

 

 

  
     Yield          Shares         

Short-Term Investments : 5.60%

           

Investment Companies : 5.60%

           

Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)##

      0.17           6,346,475         6,346,475   
          

 

 

  

Total Short-Term Investments (Cost $6,346,475)

  

      6,346,475   
          

 

 

  

Total investments in securities (Cost $121,859,353)*

      119.17 %            135,114,440   

Other assets and liabilities, net

      (19.17 )            (21,733,024 ) 
  

 

 

          

 

 

  

Total net assets

      100.00 %          $ 113,381,416   
  

 

 

          

 

 

  

 

† Non-income-earning 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.
(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.
(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.
%% The security is issued on a when-issued basis.
± Variable rate investment. The rate shown is the rate in effect at period end.
(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.
(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.

 

12

Wells Fargo Utilities and High Income Fund    Portfolio of investments — November 30, 2015 (unaudited)

 

* Cost for federal income tax purposes is $122,581,193 and unrealized gains (losses) consists of:

 

Gross unrealized gains

    $ 21,184,376   

Gross unrealized losses

      (8,651,129 ) 
  

 

 

  

Net unrealized gains

    $ 12,533,247   

 

Abbreviations:            
LLC    Limited liability company         
LP    Limited partnership         
plc    Public limited company         

 

13

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

Notes to Portfolio of investments – November 30, 2015 (unaudited)

 

Securities valuation

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

Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market 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.

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

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.

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 November 30, 2015, 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.

 

1

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 November 30, 2015:

 

     Quoted prices
(Level 1)		      Other significant
observable inputs
(Level 2)		      Significant
unobservable inputs
(Level 3)		      Total  

Assets

Investments in :

            

Common stocks

            

Consumer discretionary

    $ 4,211,407       $ 0       $ 0       $ 4,211,407   

Energy

      7,067,866         0         0         7,067,866   

Industrials

      4,445,887         0         0         4,445,887   

Telecommunication services

      5,337,784         0         0         5,337,784   

Utilities

      47,744,720         0         0         47,744,720   

Corporate bonds and notes

      0         34,440,339         0         34,440,339   

Loans

      0         1,317,484         627,262         1,944,746   

Preferred stocks

            

Financials

      88,154         0         0         88,154   

Utilities

      8,137,285         12,574,649         0         20,711,934   

Warrants

            

Utilities

      0         4,800         0         4,800   

Yankee corporate bonds and notes

      0         2,733,081         37,247         2,770,328   

Short-term investments

            

Investment companies

      6,346,475         0         0         6,346,475   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

    $ 83,379,578       $ 51,070,353       $ 664,509       $ 135,114,440   
  

 

 

     

 

 

     

 

 

     

 

 

  

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At November 30, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

 

2

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA — ACA Financial Guaranty Corporation

ADR — American depositary receipt

ADS — American depositary shares

AGC — Assured Guaranty Corporation

AGM — Assured Guaranty Municipal

Ambac — Ambac Financial Group Incorporated

AMT — Alternative minimum tax

AUD — Australian dollar

BAN — Bond anticipation notes

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazilian real

CAB — Capital appreciation bond

CAD — Canadian dollar

CCAB — Convertible capital appreciation bond

CDA — Community Development Authority

CDO — Collateralized debt obligation

CHF — Swiss franc

COP — Colombian peso

CLP — Chilean peso

DKK — Danish krone

DRIVER — Derivative inverse tax-exempt receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETF — Exchange-traded fund

EUR — Euro

FDIC — Federal Deposit Insurance Corporation

FFCB — Federal Farm Credit Banks

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Administration

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FICO — The Financing Corporation

FNMA — Federal National Mortgage Association

FSA — Farm Service Agency

GBP — Great British pound

GDR — Global depositary receipt

GNMA — Government National Mortgage Association

GO — General obligation

HCFR — Healthcare facilities revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher education facilities authority revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong dollar

HUD — Department of Housing and Urban Development

HUF — Hungarian forint

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Indonesian rupiah

IEP — Irish pound

JPY — Japanese yen

KRW — Republic of Korea won

LIBOR — London Interbank Offered Rate

LIFER — Long Inverse Floating Exempt Receipts

LIQ — Liquidity agreement

LLC — Limited liability company

LLLP — Limited liability limited partnership

LLP — Limited liability partnership

LOC — Letter of credit

LP — Limited partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multifamily housing revenue

MSTR — Municipal securities trust receipts

MTN — Medium-term note

MUD — Municipal Utility District

MXN — Mexican peso

MYR — Malaysian ringgit

National — National Public Finance Guarantee Corporation

NGN — Nigerian naira

NOK — Norwegian krone

NZD — New Zealand dollar

PCFA — Pollution Control Financing Authority

PCL — Public Company Limited

PCR — Pollution control revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable floating option tax-exempt receipts

plc — Public limited company

PLN — Polish zloty

PUTTER — Puttable tax-exempt receipts

R&D — Research & development

Radian — Radian Asset Assurance

RAN — Revenue anticipation notes

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real estate investment trust

ROC — Reset option certificates

RON — Romanian lei

RUB — Russian ruble

SAVRS — Select auction variable rate securities

SBA — Small Business Authority

SDR — Swedish depositary receipt

SEK — Swedish krona

SFHR — Single-family housing revenue

SFMR — Single-family mortgage revenue

SGD — Singapore dollar

SPA — Standby purchase agreement

SPDR — Standard & Poor’s Depositary Receipts

SPEAR — Short Puttable Exempt Adjustable Receipts

STRIPS — Separate trading of registered interest and

principal securities

TAN — Tax anticipation notes

TBA — To be announced

THB — Thai baht

TIPS — Treasury inflation-protected securities

TRAN — Tax revenue anticipation notes

TRY — Turkish lira

TTFA — Transportation Trust Fund Authority

TVA — Tennessee Valley Authority

ZAR — South African rand

ITEM 2. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo 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:   January 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:  

January 27, 2016

 

By:  

/s/ Nancy Wiser

  Nancy Wiser
 

Treasurer

 

Date:   January 27, 2016