Wells Fargo Advantage Income Opportunities 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: 811-21269

 

 

Wells Fargo Advantage Income Opportunities 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: 800-643-9691

Date of fiscal year end: April 30, 2011

Date of reporting period: July 31, 2011

 

 

 

ITEM 1. SCHEDULE OF INVESTMENTS

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name                 Shares      Value  

Common Stocks: 0.11%

           

Consumer Discretionary: 0.00%

           

Hotels, Restaurants & Leisure: 0.00%

           

Trump Entertainment Resorts Incorporated†(a)

           2,149       $ 0   

Telecommunication Services: 0.11%

           

Diversified Telecommunication Services: 0.11%

           

Fairpoint Communications Incorporated†

           134,375         1,021,253   

Total Common Stocks (Cost $3,109,746)

              1,021,253   
     Interest Rate     Maturity Date      Principal         

Convertible Debentures: 0.34%

           

Information Technology: 0.34%

           

Communications Equipment: 0.34%

           

Lucent Technologies Incorporated Series B

      2.88        06/15/2025         3,225,000         3,128,250   

Total Convertible Debentures (Cost $2,307,500)

              3,128,250   
          

 

 

  

Corporate Bonds and Notes: 86.58%

           

Consumer Discretionary: 15.19%

           

Auto Components: 1.66%

           

Allison Transmission Incorporated††

      7.13 %      05/15/2019       $ 6,075,000         5,953,500   

Cooper Tire & Rubber Company

      7.63        03/15/2027         4,455,000         4,315,781   

Cooper Tire & Rubber Company

      8.00        12/15/2019         150,000         156,375   

Goodyear Tire & Rubber Company

      10.50        05/15/2016         4,440,000         5,000,550   
             15,426,206   

Diversified Consumer Services: 2.37%

           

Carriage Services Incorporated

      7.88        01/15/2015         4,055,000         4,105,688   

Service Corporation International

      6.75        04/01/2016         1,250,000         1,350,000   

Service Corporation International

      7.00        05/15/2019         1,125,000         1,200,938   

Service Corporation International

      7.50        04/01/2027         9,376,000         9,094,720   

Service Corporation International

      8.00        11/15/2021         880,000         972,400   

Service Corporation International Series WI

      7.00        06/15/2017         1,650,000         1,790,250   

StoneMor Operating LP

      10.25        12/01/2017         3,550,000         3,550,000   
             22,063,996   

Hotels, Restaurants & Leisure: 3.96%

           

American Casinos Incorporated††

      7.50        04/15/2021         1,950,000         2,028,000   

Blue Merger Sub Incorporated††

      7.63        02/15/2019         1,150,000         1,183,063   

Burger King Corporation

      9.88        10/15/2018         1,600,000         1,748,000   

Chukchansi Economic Development Authority††±

      3.92        11/15/2012         2,525,000         2,045,250   

Citycenter Holdings LLC††

      7.63        01/15/2016         350,000         365,750   

Citycenter Holdings LLC††¥

      11.50        01/15/2017         2,111,166         2,269,503   

Dineequity Incorporated

      9.50        10/30/2018         3,050,000         3,351,188   

Greektown Superholdings Incorporated

      13.00        07/01/2015         6,662,000         7,453,113   

Greektown Superholdings Incorporated

      13.00        07/01/2015         1,625,000         1,809,844   

NAI Entertainment Holdings LLC††

      8.25        12/15/2017         2,700,000         2,919,375   

Pinnacle Entertainment Incorporated

      7.50        06/15/2015         2,880,000         2,966,400   

Scientific Games Corporation

      9.25        06/15/2019         1,130,000         1,226,050   

Speedway Motorsports Incorporated††

      6.75        02/01/2019         450,000         451,125   

Speedway Motorsports Incorporated

      8.75        06/01/2016         2,075,000         2,261,750   

 

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

1

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

Hotels, Restaurants & Leisure: (continued)

  

Yonkers Racing Corporation††

      11.38 %      07/15/2016       $ 4,325,000       $ ,692,625   
     36,771,036   

Household Durables: 0.02%

           

Sealy Mattress Company††

      10.88        04/15/2016         144,000         160,920   

Media: 5.94%

           

Cablevision Systems Corporation

      8.63        09/15/2017         2,975,000         3,287,375   

CCH II Capital Corporation

      13.50        11/30/2016         12,981,015         15,317,598   

CCO Holdings LLC

      8.13        04/30/2020         746,000         818,735   

Charter Communications Incorporated Step Bond††

      8.00        04/30/2012         590,000         613,600   

Charter Communications Incorporated Step Bond††

      10.88        09/15/2014         11,640,000         12,833,100   

Cinemark USA Incorporated††

      7.38        06/15/2021         1,525,000         1,525,000   

Cinemark USA Incorporated

      8.63        06/15/2019         350,000         382,375   

CSC Holdings LLC

      7.88        02/15/2018         1,400,000         1,536,500   

CSC Holdings LLC

      8.50        04/15/2014         200,000         223,000   

DISH DBS Corporation

      7.88        09/01/2019         2,260,000         2,483,175   

EchoStar DBS Corporation

      7.75        05/31/2015         650,000         710,938   

Gray Television Incorporated

      10.50        06/29/2015         1,275,000         1,322,813   

Lamar Media Corporation Series C

      9.75        04/01/2014         675,000         780,469   

LIN Television Corporation

      8.38        04/15/2018         1,225,000         1,307,688   

Local TV Finance LLC††¥

      9.25        06/15/2015         2,400,000         2,394,000   

Regal Cinemas Corporation

      8.63        07/15/2019         5,050,000         5,428,750   

Salem Communications

      9.63        12/15/2016         2,886,000         3,059,160   

Sirius XM Radio Incorporated††

      9.75        09/01/2015         250,000         277,500   

Sirius XM Radio Incorporated††

      13.00        08/01/2014         815,000         955,588   
     55,257,364   

Multiline Retail: 0.14%

           

Saks Incorporated

      9.88        10/01/2011         1,270,000         1,284,406   

Specialty Retail: 0.63%

           

Gap Incorporated

      5.95        04/12/2021         1,175,000         1,159,759   

Limited Brands Incorporated

      6.63        04/01/2021         925,000         957,375   

Radioshack Corporation††

      6.75        05/15/2019         1,325,000         1,288,563   

Rent A Center Incorporated††

      6.63        11/15/2020         700,000         708,750   

Toys R Us Property Company LLC

      8.50        12/01/2017         1,600,000         1,712,000   
     5,826,447   

Textiles, Apparel & Luxury Goods: 0.47%

           

Oxford Industrial Incorporated

      11.38        07/15/2015         3,850,000         4,355,313   

Consumer Staples: 1.02%

           

Beverages: 0.03%

           

Cott Beverages Incorporated

      8.38        11/15/2017         250,000         265,000   

Food Products: 0.99%

           

Darling International Incorporated††

      8.50        12/15/2018         250,000         275,313   

Dole Food Company Incorporated

      13.88        03/15/2014         3,075,000         3,690,000   

Smithfield Foods Incorporated

      10.00        07/15/2014         4,465,000         5,218,469   
     9,183,782   

Energy: 13.04%

           

Energy Equipment & Services: 2.63%

           

 

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

2

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

Energy Equipment & Services (continued)

  

Bristow Group Incorporated

      7.50 %      09/15/2017       $ 2,210,000       $ 2,314,975   

Dresser Rand Group Incorporated††

      6.50        05/01/2021         1,825,000         1,879,750   

Gulfmark Offshore Incorporated

      7.75        07/15/2014         3,395,000         3,424,706   

Hornbeck Offshore Services Incorporated Series B

      6.13        12/01/2014         5,325,000         5,325,000   

Hornbeck Offshore Services Incorporated Series B

      8.00        09/01/2017         4,920,000         5,030,700   

Oil States International Incorporated††

      6.50        06/01/2019         500,000         510,000   

Parker Drilling Company

      9.13        04/01/2018         860,000         915,900   

PHI Incorporated

      8.63        10/15/2018         4,650,000         4,766,250   

Pride International Incorporated

      8.50        06/15/2019         210,000         271,285   
     24,438,566   

Oil, Gas & Consumable Fuels: 10.41%

           

Amerigas Partner Financial Corporation

      6.25        08/20/2019         500,000         501,250   

Chesapeake Energy Corporation

      9.50        02/15/2015         5,085,000         5,974,875   

Cloud Peak Energy Resources LLC

      8.25        12/15/2017         200,000         214,000   

Cloud Peak Energy Resources LLC

      8.50        12/15/2019         250,000         270,313   

Coffeyville Resources Incorporated††

      9.00        04/01/2015         1,722,000         1,872,675   

Consol Energy Incorporated

      8.25        04/01/2020         2,665,000         2,964,813   

Denbury Resources Incorporated

      6.38        08/15/2021         700,000         721,000   

Denbury Resources Incorporated

      8.25        02/15/2020         850,000         939,250   

El Paso Corporation

      6.50        09/15/2020         1,155,000         1,285,180   

El Paso Corporation

      6.88        06/15/2014         325,000         363,081   

El Paso Corporation

      7.00        06/15/2017         375,000         434,391   

El Paso Corporation

      7.25        06/01/2018         3,224,000         3,740,362   

El Paso Corporation

      7.42        02/15/2037         1,820,000         2,124,668   

El Paso Corporation

      7.80        08/01/2031         3,050,000         3,613,518   

Energy Transfer Equity LP

      7.50        10/15/2020         5,950,000         6,366,500   

Ferrellgas Finance Corporation†

      6.50        05/01/2021         1,125,000         1,085,625   

Ferrellgas Finance Corporation

      9.13        10/01/2017         4,660,000         4,997,850   

Forest Oil Corporation

      7.25        06/15/2019         2,520,000         2,620,800   

Forest Oil Corporation

      8.50        02/15/2014         1,115,000         1,212,563   

Griffin Coal Mining Company Limited(s)

      9.50        12/01/2016         701,991         660,749   

Hilcorp Energy Company††

      7.75        11/01/2015         975,000         1,006,688   

Holly Corporation

      9.88        06/15/2017         4,265,000         4,787,463   

Inergy LP††

      6.88        08/01/2021         1,125,000         1,130,625   

Inergy LP

      7.00        10/01/2018         950,000         969,000   

Newfield Exploration Company

      6.88        02/01/2020         1,185,000         1,276,838   

Peabody Energy Corporation

      7.88        11/01/2026         8,705,000         9,858,413   

Penn Virginia Corporation

      10.38        06/15/2016         215,000         240,263   

Petrohawk Energy Corporation

      7.88        06/01/2015         2,045,000         2,213,713   

Petrohawk Energy Corporation

      10.50        08/01/2014         1,065,000         1,211,438   

Pioneer Natural Resource Company

      7.50        01/15/2020         3,170,000         3,652,094   

Plains Exploration & Production Company

      8.63        10/15/2019         6,380,000         7,097,750   

Regency Energy Partners

      6.88        12/01/2018         475,000         503,500   

Sabine Pass LNG LP

      7.25        11/30/2013         4,940,000         5,051,150   

Sabine Pass LNG LP

      7.50        11/30/2016         4,475,000         4,609,250   

SandRidge Energy Incorporated

      8.75        01/15/2020         1,970,000         2,162,075   

Ship Finance International Limited

      8.50        12/15/2013         2,450,000         2,465,313   

Stallion Oilfield Holdings Incorporated

      10.50        02/15/2015         1,159,000         1,298,080   

Suburban Propane Partners LP

      7.38        03/15/2020         575,000         613,813   

Susser Holdings LLC

      8.50        05/15/2016         2,000,000         2,135,000   

Tesoro Corporation

      9.75        06/01/2019         2,185,000         2,479,975   
     96,725,904   

Financials: 20.18%

           

Capital Markets: 1.38%

           

E*TRADE Financial Corporation

      12.50        11/30/2017         9,741,000         11,640,495   

 

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

3

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

Capital Markets: (continued)

  

Oppenheimer Holdings Incorporated††

      8.75 %      04/15/2018       $ 1,100,000       $ 1,152,250   
     12,792,745   

Commercial Banks: 2.69%

           

Capitalsource Incorporated††

      12.75        07/15/2014         4,375,000         5,282,813   

CIT Group Incorporated††

      5.25        04/01/2014         5,850,000         5,864,625   

CIT Group Incorporated††

      6.63        04/01/2018         1,950,000         2,057,250   

CIT Group Incorporated

      7.00        05/01/2014         1,589,365         1,601,285   

CIT Group Incorporated††

      7.00        05/04/2015         1,575,000         1,578,938   

CIT Group Incorporated

      7.00        05/01/2016         2,850,000         2,857,125   

CIT Group Incorporated

      7.00        05/01/2017         525,000         526,313   

Emigrant Bancorp Incorporated††(i)

      6.25        06/15/2014         5,725,000         5,188,276   
     24,956,625   

Consumer Finance: 9.56%

           

American General Finance Corporation

      5.40        12/01/2015         2,725,000         2,520,625   

American General Finance Corporation

      5.75        09/15/2016         2,250,000         2,070,000   

American General Finance Corporation

      6.50        09/15/2017         450,000         409,500   

Calpine Construction Finance Corporation††

      8.00        06/01/2016         2,700,000         2,916,000   

Clearwire Communications Finance Corporation††

      12.00        12/01/2015         2,280,000         2,319,900   

Clearwire Communications Finance Corporation††

      12.00        12/01/2015         3,140,000         3,206,725   

Dunkin Finance Corporation††

      9.63        12/01/2018         795,000         801,948   

Ford Motor Credit Company LLC

      7.00        10/01/2013         500,000         537,668   

Ford Motor Credit Company LLC

      8.00        12/15/2016         100,000         114,624   

Ford Motor Credit Company LLC

      9.88        08/10/2011         3,865,000         3,870,396   

General Motors Financial Company††

      6.75        06/01/2018         1,850,000         1,887,000   

GMAC LLC

      6.75        12/01/2014         2,344,000         2,461,200   

GMAC LLC

      6.88        09/15/2011         130,000         130,780   

GMAC LLC

      6.88        08/28/2012         2,862,000         2,947,860   

GMAC LLC

      7.50        12/31/2013         6,855,000         7,266,300   

Homer City Funding LLC

      8.73        10/01/2026         2,938,024         2,691,964   

International Lease Finance Corporation

      6.38        03/25/2013         865,000         897,438   

International Lease Finance Corporation

      8.63        09/15/2015         1,700,000         1,874,250   

JBS USA Finance Incorporated

      11.63        05/01/2014         8,465,000         9,777,075   

LBI Escrow Corporation††

      8.00        11/01/2017         1,375,000         1,553,750   

Level 3 Financing Incorporated

      10.00        02/01/2018         4,555,000         4,908,013   

Nielsen Finance LLC Company††

      7.75        10/15/2018         9,370,000         9,932,200   

Nielsen Finance LLC Company

      11.50        05/01/2016         1,170,000         1,360,125   

Springleaf Finance Corporation

      6.90        12/15/2017         4,050,000         3,791,813   

Sprint Capital Corporation

      6.88        11/15/2028         9,875,000         9,381,250   

Sprint Capital Corporation

      6.90        05/01/2019         4,725,000         4,831,313   

Sprint Capital Corporation

      8.38        03/15/2012         4,218,000         4,376,175   
     88,835,892   

Diversified Financial Services: 4.25%

           

Ally Financial Incorporated

      8.30        02/12/2015         8,820,000         9,657,900   

Hub International Holdings Incorporated††

      10.25        06/15/2015         6,650,000         6,650,000   

Leucadia National Corporation

      8.13        09/15/2015         7,815,000         8,596,500   

Nuveen Investments Incorporated

      5.50        09/15/2015         5,800,000         5,176,500   

Nuveen Investments Incorporated††

      10.50        11/15/2015         4,825,000         4,981,813   

Nuveen Investments Incorporated

      10.50        11/15/2015         4,295,000         4,477,538   
     39,540,251   

REIT: 2.30%

           

Dupont Fabros Technology Incorporated

      8.50        12/15/2017         11,580,000         12,680,100   

Host Hotels & Resorts LP

      9.00        05/15/2017         490,000         549,413   

MPT Operating Partnership LP††

      6.88        05/01/2021         3,175,000         3,111,500   

 

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

4

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

REIT: (continued)

  

Omega Healthcare Investors Incorporated††

      6.75 %      10/15/2022       $ 3,375,000       $ 3,434,063   

Ventas Incorporated

      9.00        05/01/2012         1,560,000         1,643,641   
     21,418,717   

Health Care: 4.25%

           

Health Care Equipment & Supplies: 0.78%

           

Biomet Incorporated

      10.38        10/15/2017         1,215,000         1,324,350   

Biomet Incorporated

      11.63        10/15/2017         3,485,000         3,837,856   

Fresenius Medical Care Incorporated††

      5.75        02/15/2021         1,000,000         987,500   

Fresenius Medical Care Incorporated

      6.88        07/15/2017         1,025,000         1,096,750   
     7,246,456   

Health Care Providers & Services: 3.29%

           

Apria Healthcare Group Incorporated

      11.25        11/01/2014         2,440,000         2,501,000   

Aviv Healthcare Incorporated††

      7.75        02/15/2019         3,725,000         3,794,844   

Centene Corporation

      5.75        06/01/2017         1,925,000         1,915,375   

Community Health Systems Incorporated Series WI

      8.88        07/15/2015         1,270,000         1,312,863   

HCA Incorporated

      6.50        02/15/2020         2,425,000         2,461,375   

HCA Incorporated

      7.50        02/15/2022         1,950,000         1,979,250   

HCA Incorporated

      8.50        04/15/2019         375,000         413,438   

HCA Incorporated

      9.25        11/15/2016         6,745,000         7,196,072   

HCA Incorporated

      9.63        11/15/2016         3,957,000         4,233,990   

Health Management plc

      6.13        04/15/2016         475,000         491,625   

HealthSouth Corporation

      7.25        10/01/2018         750,000         785,625   

HealthSouth Corporation

      7.75        09/15/2022         750,000         798,750   

Sabra Health Care LP

      8.13        11/01/2018         2,650,000         2,679,813   
     30,564,020   

Pharmaceuticals: 0.18%

           

Mylan Incorporated††

      6.00        11/15/2018         650,000         664,625   

Mylan Incorporated††

      7.63        07/15/2017         650,000         713,375   

Mylan Incorporated††

      7.88        07/15/2020         300,000         333,000   
     1,711,000   

Industrials: 7.02%

           

Aerospace & Defense: 2.12%

           

Alliant Techsystems Incorporated

      6.75        04/01/2016         4,470,000         4,592,925   

Digitalglobe Incorporated

      10.50        05/01/2014         800,000         884,000   

Gencorp Incorporated

      9.50        08/15/2013         1,030,000         1,030,000   

GeoEye Incorporated

      9.63        10/01/2015         1,140,000         1,302,450   

Hexcel Corporation

      6.75        02/01/2015         1,089,000         1,112,141   

Huntington Ingalls Industries Incorporated††

      6.88        03/15/2018         625,000         643,750   

Huntington Ingalls Industries Incorporated††

      7.13        03/15/2021         225,000         232,313   

Kratos Defense & Security Solutions Incorporated

      10.00        06/01/2017         2,570,000         2,743,475   

L-3 Communications Holdings Incorporated

      6.38        10/15/2015         5,506,000         5,650,533   

Wyle Services Corporation††

      10.50        04/01/2018         1,445,000         1,544,344   
     19,735,931   

Commercial Services & Supplies: 1.89%

           

Casella Waste Systems Incorporated

      11.00        07/15/2014         4,385,000         4,867,350   

Corrections Corporation of America

      6.25        03/15/2013         1,305,000         1,306,631   

Corrections Corporation of America

      7.75        06/01/2017         2,035,000         2,210,519   

Geo Group Incorporated

      7.75        10/15/2017         2,855,000         3,054,850   

Interface Incorporated

      7.63        12/01/2018         300,000         319,500   

Iron Mountain Incorporated

      8.38        08/15/2021         3,520,000         3,766,400   

 

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

5

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

Commercial Services & Supplies: (continued)

  

KAR Holdings Incorporated±

      4.27 %      05/01/2014       $ 2,125,000       $ 2,082,500   
     17,607,750   

Machinery: 0.77%

           

Cleaver-Brooks Incorporated††

      12.25        05/01/2016         1,440,000         1,483,200   

Columbus McKinnon Corporation††

      7.88        02/01/2019         1,575,000         1,630,125   

CPM Holdings Incorporated

      10.88        09/01/2014         3,025,000         3,267,000   

Titan International Incorporated††

      7.88        10/01/2017         700,000         745,500   
     7,125,825   

Professional Services: 0.67%

           

Affinia Group Incorporated††

      10.75        08/15/2016         207,000         231,840   

DRT Merger Sub Incorporated††

      8.13        06/01/2019         800,000         800,000   

Interactive Data Corporation††

      10.25        08/01/2018         2,535,000         2,826,525   

NCO Group Incorporated

      11.88        11/15/2014         2,450,000         2,339,750   
     6,198,115   

Road & Rail: 1.44%

           

Kansas City Southern

      8.00        06/01/2015         8,285,000         8,906,375   

Kansas City Southern

      13.00        12/15/2013         1,184,000         1,379,360   

RailAmerica Incorporated

      9.25        07/01/2017         2,775,000         3,052,500   
     13,338,235   

Transportation Infrastructure: 0.13%

           

United Maritime Group

      11.75        06/15/2015         1,190,000         1,243,550   

Information Technology: 7.76%

           

Communications Equipment: 1.31%

           

Allbritton Communications Company

      8.00        05/15/2018         2,574,000         2,644,785   

EchoStar DBS Corporation

      7.13        02/01/2016         910,000         971,425   

Intelsat Jackson Holdings Limited

      9.50        06/15/2016         1,000,000         1,051,250   

Lucent Technologies Incorporated

      6.45        03/15/2029         3,100,000         2,797,750   

Seagate Technology Holdings

      6.80        10/01/2016         1,275,000         1,351,500   

Seagate Technology Holdings††

      7.00        11/01/2021         725,000         732,250   

Seagate Technology Holdings††

      7.75        12/15/2018         2,500,000         2,625,000   
     12,173,960   

Computers & Peripherals: 0.38%

           

Intcomex Incorporated

      13.25        12/15/2014         2,820,000         2,897,550   

Seagate Technology HDD Holdings††

      6.88        05/01/2020         650,000         651,625   
     3,549,175   

Electronic Equipment, Instruments & Components: 2.52%

           

GCI Incorporated††

      6.75        06/01/2021         1,350,000         1,370,250   

Jabil Circuit Incorporated

      8.25        03/15/2018         13,532,000         15,527,970   

Kemet Corporation

      10.50        05/01/2018         3,380,000         3,743,350   

Viasystem Group Incorporated††

      12.00        01/15/2015         2,530,000         2,776,675   
     23,418,245   

Internet Software & Services: 0.27%

           

Equinix Incorporated

      7.00        07/15/2021         125,000         130,000   

 

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

6

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

Internet Software & Services: (continued)

  

Equinix Incorporated

      8.13 %      03/01/2018       $ 2,125,000       $ 2,337,500   
     2,467,500   

IT Services: 3.06%

           

Audatex North American Incorporated††

      6.75        06/15/2018         475,000         488,063   

Fidelity National Information Services

      7.88        07/15/2020         1,750,000         1,868,125   

First Data Corporation

      11.25        03/31/2016         7,375,000         7,264,375   

SunGard Data Systems Incorporated††

      7.38        11/15/2018         1,100,000         1,116,500   

SunGard Data Systems Incorporated††

      7.63        11/15/2020         550,000         559,625   

SunGard Data Systems Incorporated

      10.25        08/15/2015         6,639,750         6,888,741   

Syniverse Holdings Incorporated††

      9.13        01/15/2019         6,625,000         6,931,406   

Unisys Corporation

      12.50        01/15/2016         1,065,000         1,166,175   

Unisys Corporation††

      12.75        10/15/2014         1,068,000         1,238,880   

Unisys Corporation††

      14.25        09/15/2015         751,000         886,180   
     28,408,070   

Semiconductors & Semiconductor Equipment: 0.22%

           

Advanced Micro Devices Incorporated

      5.75        08/15/2012         2,025,000         2,060,438   

Materials: 2.69%

           

Chemicals: 1.04%

           

Huntsman International LLC

      5.50        06/30/2016         2,855,000         2,826,450   

Lyondell Chemical Company

      11.00        05/01/2018         4,807,125         5,444,069   

Solutia Incorporated

      7.88        03/15/2020         1,300,000         1,417,000   
     9,687,519   

Containers & Packaging: 0.48%

           

Crown Americas LLC

      7.63        05/15/2017         950,000         1,028,375   

Graham Packaging Company Incorporated

      8.25        01/01/2017         350,000         370,125   

Graham Packaging Company Incorporated

      9.88        10/15/2014         2,450,000         2,511,250   

Owens Brockway Glass Container Incorporated

      7.38        05/15/2016         515,000         562,638   
     4,472,388   

Metals & Mining: 0.69%

           

Freeport-McMoRan Copper & Gold Incorporated

      8.38        04/01/2017         5,725,000         6,254,563   

Indalex Holdings Corporation(s)

      11.50        02/01/2014         5,985,000         89,775   
     6,344,338   

Paper & Forest Products: 0.48%

           

Clearwater Paper Corporation

      10.63        06/15/2016         1,175,000         1,324,813   

Georgia-Pacific Corporation

      8.88        05/15/2031         2,430,000         3,155,425   
     4,480,238   

Telecommunication Services: 8.74%

           

Diversified Telecommunication Services: 4.89%

           

Citizens Communications Company

      7.88        01/15/2027         9,580,000         9,316,550   

FairPoint Communications Incorporated††

      10.88        04/01/2017         2,550,000         2,926,125   

Frontier Communications Corporation

      8.13        10/01/2018         1,980,000         2,173,050   

Frontier Communications Corporation

      8.25        04/15/2017         4,455,000         4,889,363   

Frontier Communications Corporation

      8.50        04/15/2020         1,000,000         1,097,500   

GCI Incorporated

      8.63        11/15/2019         4,075,000         4,482,500   

Global Crossing Limited

      12.00        09/15/2015         345,000         400,200   

Qwest Corporation

      7.50        06/15/2023         3,260,000         3,251,850   

 

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

7

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

Diversified Telecommunication Services (continued)

  

Qwest Corporation

      7.63 %      08/03/2021       $ 440,000       $ 493,610   

Qwest Corporation

      8.88        03/15/2012         4,200,000         4,389,000   

SBA Telecommunications Incorporated

      8.00        08/15/2016         1,090,000         1,164,938   

SBA Telecommunications Incorporated

      8.25        08/15/2019         485,000         523,800   

U.S. West Communications Incorporated

      7.13        11/15/2043         1,810,000         1,751,175   

U.S. West Communications Incorporated

      7.25        09/15/2025         2,755,000         2,885,863   

Windstream Corporation

      7.88        11/01/2017         5,380,000         5,749,875   
     45,495,399   

Wireless Telecommunication Services: 3.85%

           

CC Holdings LLC††

      7.75        05/01/2017         650,000         710,938   

Cricket Communications Incorporated

      7.75        05/15/2016         3,755,000         4,003,769   

Crown Castle International Corporation

      7.13        11/01/2019         165,000         175,931   

Crown Castle International Corporation

      9.00        01/15/2015         650,000         711,750   

Intelsat Limited††

      7.25        04/01/2019         2,500,000         2,531,250   

Intelsat Limited††

      7.50        04/01/2021         1,575,000         1,598,625   

Intelsat Limited

      11.25        06/15/2016         3,965,000         4,222,725   

iPCS Incorporated

      3.52        05/01/2014         2,607,559         2,503,257   

MetroPCS Communications Incorporated

      6.63        11/15/2020         4,150,000         4,160,375   

MetroPCS Communications Incorporated

      7.88        09/01/2018         1,050,000         1,116,938   

Sprint Nextel Corporation Series D

      7.38        08/01/2015         7,935,000         7,935,000   

Sprint Nextel Corporation Series F

      5.95        03/15/2014         6,065,000         6,083,953   
     35,754,511   

Utilities: 6.69%

           

Electric Utilities: 3.55%

           

Aquila Incorporated Step Bond

      11.88        07/01/2012         14,996,000         16,448,603   

Energy Future Holdings Corporation

      10.00        12/01/2020         150,000         158,313   

Energy Future Holdings Corporpation

      12.00        11/01/2017         1,811,245         1,557,671   

Ipalco Enterprises Incorporated††

      5.00        05/01/2018         1,750,000         1,738,700   

Mirant Americas Generation LLC

      8.50        10/01/2021         250,000         255,000   

Mirant Mid-Atlantic LLC Series C

      10.06        12/30/2028         7,560,525         8,429,985   

Otter Tail Corporation

      9.00        12/15/2016         3,985,000         4,413,388   
     33,001,660   

Gas Utilities: 0.18%

           

AmeriGas Partners LP

      6.50        05/20/2021         1,050,000         1,076,250   

AmeriGas Partners LP

      7.13        05/20/2016         550,000         571,280   
     1,647,530   

Independent Power Producers & Energy Traders: 2.96%

           

Calpine Corporation††

      7.25        10/15/2017         9,469,000         9,705,725   

Dynegy Holding Incorporated

      7.63        10/15/2026         4,850,000         3,152,500   

NRG Energy Incorporated

      7.38        01/15/2017         6,050,000         6,344,938   

NRG Energy Incorporated

      8.50        06/15/2019         3,675,000         3,822,000   

RRI Energy Incorporated

      7.63        06/15/2014         1,020,000         1,060,800   

RRI Energy Incorporated

      7.88        06/15/2017         75,000         75,375   

RRI Energy Incorporated

      9.24        07/02/2017         2,287,916         2,470,949   

RRI Energy Incorporated

      9.68        07/02/2026         780,000         834,600   
     27,466,887   

Total Corporate Bonds and Notes (Cost $761,130,394)

  

      804,501,910   

 

 

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

8

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name    Interest Rate     Maturity Date      Principal      Value  

Yankee Corporate Bonds and Notes: 2.02%

  

Consumer Discretionary: 0.20%

  

Media: 0.20%

  

Videotron Limited

      6.38 %      12/15/2015       $ 100,000         102,750   

Videotron Limited

      9.13        04/15/2018         1,525,000         1,713,719   
     1,816,469   

Energy: 0.52%

           

Oil, Gas & Consumable Fuels: 0.52%

           

Griffin Coal Mining Company Limited††(s)

      9.50        12/31/2049         5,128,748         4,827,434   

Financials: 0.26%

           

Consumer Finance: 0.26%

           

Wind Acquisition Finance SA††

      11.75        07/15/2017         2,205,000         2,444,794   

Diversified Financial Services: 0.00%

           

Preferred Term Securities XII Limited(s)(i)

      0.00        12/24/2033         1,540,000         462   

Materials: 0.85%

           

Metals & Mining: 0.53%

           

Novelis Incorporated

      7.25        02/15/2015         630,000         627,638   

Novelis Incorporated

      8.38        12/15/2017         1,000,000         1,088,750   

Novelis Incorporated

      8.75        12/15/2020         2,425,000         2,697,813   

Vedanta Resources plc

      9.50        07/18/2018         500,000         554,400   
     4,968,601   

Paper & Forest Products: 0.32%

           

PE Paper Escrow GmbH††

      12.00        08/01/2014         715,000         811,525   

Sappi Limited††

      7.50        06/15/2032         2,355,000         2,119,500   
     2,931,025   

Telecommunication Services: 0.19%

           

Wireless Telecommunication Services: 0.19%

           

Digicel Group Limited††

      12.00        04/01/2014         870,000         1,004,850   

Telesat Canada Incorporated

      11.00        11/01/2015         690,000         755,550   
     1,760,400   

Total Yankee Corporate Bonds and Notes (Cost $16,274,397)

  

      18,749,185   
     Dividend Yield            Shares         

Preferred Stocks: 0.14%

           

Financials: 0.14%

           

Consumer Finance: 0.14%

           

GMAC Capital Trust

      8.13           53,000         1,353,090   

Total Preferred Stocks (Cost $1,325,000)

  

      1,353,090   

 

 

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

9

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

Security Name                 Shares      Value  

Investment Companies: 0.01%

  

Eaton Vance Limited Duration Income Trust

           6,490       $ 104,943   

Total Investment Companies (Cost $60,299)

  

      104,943   
     Interest Rate     Maturity Date      Principal         

Term Loans: 8.93%

           

Advantage Sales & Marketing Incorporated

      9.25 %      06/18/2018       $ 900,000         910,503   

Arrowhead General Insurance Agency Incorporated

      7.50        03/03/2017         1,496,250         1,485,028   

Barrington Broadcasting Company

      4.54        08/12/2013         1,772,703         1,740,582   

Capital Automotive LP

      5.00        03/10/2017         7,575,024         7,567,449   

CCM Merger Incorporated

      7.00        03/01/2017         6,690,754         6,754,316   

Coinmach Corporation

      3.25        11/20/2014         5,696,566         5,431,904   

Fairpoint Communications Incorporated

      6.50        01/22/2016         6,788,901         5,999,691   

Federal Mogul Corporation

      2.13        12/29/2014         819,213         778,695   

Federal Mogul Corporation

      2.13        12/28/2015         814,881         774,577   

First Data Corporation

      2.93        09/24/2014         1,485,523         1,381,744   

First Data Corporation

      2.93        09/24/2014         2,867,975         2,667,618   

First Data Corporation

      2.93        09/24/2014         5,354,373         4,980,316   

Gray Television Incorporated

      3.69        12/31/2014         1,809,942         1,768,458   

HHI Holdings Limited

      7.00        03/21/2017         2,244,375         2,244,375   

Level 3 Financing Incorporated

      2.48        03/13/2014         1,300,000         1,251,575   

Local TV Finance LLC

      2.19        05/07/2013         2,720,910         2,645,595   

Merisant Company(i)

      7.50        01/08/2014         1,623,004         1,598,659   

NCO Group Incorporated

      8.00        11/15/2013         2,544,675         2,534,649   

Newsday LLC

      10.50        08/01/2013         5,920,000         6,227,130   

Panolam Industries International(i)

      8.25        12/31/2013         463,969         424,968   

Springleaf Finance Corporation

      5.50        05/05/2017         1,350,000         1,316,250   

Texas Competitive Electric Holdings

      3.68        10/10/2017         4,450,000         3,313,648   

Texas Competitive Electric Holdings

      4.73        10/10/2014         23,237,911         18,207,833   

Wash Multifamily Laundry Systems LLC

      7.00        08/28/2014         994,885         991,572   

Total Term Loans (Cost $84,253,304)

  

      82,997,135   

Short-Term Investments: 1.51%

           
     Yield            Shares         

Investment Companies: 1.51%

           

Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)

      0.02           14,011,321         14,011,321   

Total Short-Term Investments (Cost $14,011,321)

  

   

 

14,011,321

  

Total Investments in Securities (Cost $882,471,961*

      99.64 %            925,867,087   

Other Assets and Liabilities, Net

      0.36              3,377,080   
  

 

 

          

 

 

  

Total Net Assets

      100.00 %          $ 929,244,167   
  

 

 

          

 

 

  

 

† Non-income earning security.
(a) Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.
†† Security that may be resold to “qualified institutional buyers” under Rule †† or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.
± Variable rate investment.
¥ A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.
(s) Security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on this security.
(i) Illiquid security
(l) Investment in an affiliate.

 

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

10

PORTFOLIO OF INVESTMENTS — July 31, 2011 (UNAUDITED)

 

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

 

 

(u) Rate shown is the 7-day annualized yield at period end.
* Cost for federal income tax purposes is $886,647,373 and net unrealized appreciation (depreciation) consists of:

 

  

Gross unrealized appreciation

    $ 53,221,808     
  

Gross unrealized depreciation

      (14,002,094 )   
     

 

 

    
  

Net unrealized appreciation

    $ 39,219,714     

 

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

11

WELLS FARGO ADVANTAGE INCOME OPPORTUNITIES FUND

NOTES TO PORTFOLIO OF INVESTMENTS – JULY 31, 2011 (unaudited)

 

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

Securities valuation

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

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

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

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

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

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

When-issued transactions

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

Term loans

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

As of July 31, 2011, the Fund had no unfunded loan commitments.

Fair valuation measurements

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

 

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

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

As of July 31, 2011, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

 

Investments in Securities

    Quoted Prices
(Level 1)		      Significant Other
Observable
Inputs
(Level 2)		      Significant
Unobservable
Inputs
(Level 3)		      Total  

Equity securities

            

Common stocks

    $ 1,021,253       $ 0       $ 0       $ 1,021,253   

Investment companies

      104,943         0         0         104,943   

Preferred stocks

      0         1,353,090         0         1,353,090   

Convertible debentures

      0         3,128,250         0         3,128,250   

Corporate bonds and notes

      0         792,766,376         11,735,534         804,501,910   

Term loans

      0         72,785,049         10,212,086         82,997,135   

Yankee corporate bonds

      0         18,748,723         462         18,749,185   

Short-term investments

            

Investment companies

      14,011,321         0         0         14,011,321   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 15,137,517       $ 888,781,488       $ 21,948,082       $ 925,867,087   
  

 

 

     

 

 

     

 

 

     

 

 

  

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

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

 

     Corporate
bonds and
notes		     Term
Loans		     Yankee
corporate
bonds and
notes		      Total  

Balance as of April 30, 2011

    $ 12,165,050      $ 6,408,149      $ 462       $ 18,573,661   

Accrued discounts (premiums)

      6,966        1,195        0         8,874   

Realized gains (losses)

      (5,871,004 )      10,439        0         (5,860,565 ) 

Change in unrealized gains (losses)

      5,764,562        (42,277 )      0         5,721,571   

Purchases

      0        0        0         0   

Sales

      (330,039 )      (2,534,472 )      0         (2,864,511 ) 

Transfers into Level 3

      0        7,967,711        0         7,967,711   

Transfers out of Level 3

      0        (1,598,659 )      0         (1,598,659 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Balance as of July 31, 2011

    $ 11,735,534      $ 10,212,086      $ 462       $ 21,948,082   
  

 

 

    

 

 

    

 

 

     

 

 

  

Change in unrealized gains (losses) relating to securities still held at July 31, 2011

    $ (71,771 )    $ 2,805      $ 0       $ (69,678 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

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

ABAG — Association of Bay Area Governments

ACB — Agricultural Credit Bank

ADR — American Depositary Receipt

ADS — American Depository Shares

AGC-ICC — Assured Guaranty Corporation - Insured Custody Certificates

AGM — Assured Guaranty Municipal

AMBAC — American Municipal Bond Assurance Corporation

AMT — Alternative Minimum Tax

ARM — Adjustable Rate Mortgages

AUD — Australian Dollar

BAN — Bond Anticipation Notes

BART — Bay Area Rapid Transit

BHAC — Berkshire Hathaway Assurance Corporation

BRL — Brazil Real

CAD — Canadian Dollar

CDA — Community Development Authority

CDO — Collateralized Debt Obligation

CDSC — Contingent Deferred Sales Charge

CGIC — Capital Guaranty Insurance Company

CGY — Capital Guaranty Corporation

CHF — Swiss Franc

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

COP — Certificate of Participation

CP — Commercial Paper

CR — Custody Receipts

CTF — Common Trust Fund

DEM - Deutsche Mark

DKK — Danish Krone

DRIVER — Derivative Inverse Tax-Exempt Receipts

DW&P — Department of Water & Power

DWR — Department of Water Resources

ECFA — Educational & Cultural Facilities Authority

EDA — Economic Development Authority

EDFA — Economic Development Finance Authority

ETET — Eagle Tax-Exempt Trust

ETF — Exchange-Traded Fund

EUR — Euro

FFCB — Federal Farm Credit Bank

FGIC — Financial Guaranty Insurance Corporation

FHA — Federal Housing Authority

FHAG — Federal Housing Agency

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

FRF - French Franc

FSA — Farm Service Agency

GBP — Great British Pound

GDR — Global Depositary Receipt

GNMA — Government National Mortgage Association

GO — General Obligation

HCFR — Healthcare Facilities Revenue

HEFA — Health & Educational Facilities Authority

HEFAR — Higher Education Facilities Authority Revenue

HFA — Housing Finance Authority

HFFA — Health Facilities Financing Authority

HKD — Hong Kong Dollar

HUD — Housing & Urban Development

HUF — Hungarian Forint

IDA — Industrial Development Authority

IDAG — Industrial Development Agency

IDR — Industrial Development Revenue

IEP — Irish Pound

JPY — Japanese Yen

KRW — Republic of Korea Won

LIBOR — London Interbank Offered Rate

LLC — Limited Liability Company

LLP — Limited Liability Partnership

LOC — Letter of Credit

LP — Limited Partnership

MBIA — Municipal Bond Insurance Association

MFHR — Multi-Family Housing Revenue

MFMR — Multi-Family Mortgage Revenue

MMD — Municipal Market Data

MSTR — Municipal Securities Trust Receipts

MTN — Medium Term Note

MUD — Municipal Utility District

MXN — Mexican Peso

MYR — Malaysian Ringgit

NATL-RE — National Public Finance Guarantee Corporation

NLG - Netherlands Guilder

NOK — Norwegian Krone

NZD — New Zealand Dollar

PCFA — Pollution Control Finance Authority

PCR — Pollution Control Revenue

PFA — Public Finance Authority

PFFA — Public Facilities Financing Authority

PFOTER — Puttable Floating Option Tax-Exempt Receipts

plc — Public Limited Company

PLN — Polish Zloty

PSFG — Public School Fund Guaranty

PUTTER — Puttable Tax-Exempt Receipts

R&D — Research & Development

RDA — Redevelopment Authority

RDFA — Redevelopment Finance Authority

REIT — Real Estate Investment Trust

ROC — Reset Option Certificates

SEK — Swedish Krona

SFHR — Single Family Housing Revenue

SFMR — Single Family Mortgage Revenue

SGD — Singapore Dollar

SKK — Slovakian Koruna

SLMA — Student Loan Marketing Association

SPDR — Standard & Poor’s Depositary Receipts

STIT — Short-Term Investment Trust

TAN — Tax Anticipation Notes

TBA — To Be Announced

TIPS — Treasury Inflation-Protected Securities

TRAN — Tax Revenue Anticipation Notes

TCR — Transferable Custody Receipts

TRY — Turkish Lira

TTFA — Transportation Trust Fund Authority

USD — Unified School District

XLCA — XL Capital Assurance

ZAR — South African Rand

ITEM 2. CONTROLS AND PROCEDURES

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

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

SIGNATURES

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

 

Wells Fargo Advantage Income Opportunities Fund
By:   /s/ Karla M. Rabusch
 

Karla M. Rabusch

President

Date:   September 28, 2011

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

 

Wells Fargo Advantage Income Opportunities Fund
By:   /s/ Karla M. Rabusch
 

Karla M. Rabusch

President

Date:   September 28, 2011
By:   /s/ Kasey L. Phillips
 

Kasey L. Phillips

Treasurer

Date:   September 28, 2011