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: 811-22005
Wells Fargo Advantage Global Dividend Opportunity 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: October 31, 2009
Date of reporting period: July 31, 2010
ITEM 1. SCHEDULE OF INVESTMENTS
PORTFOLIO OF INVESTMENTS - JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANATGE GLOBAL DIVIDEND OPPORTUNITY FUND (FORMERLY, EVERGREEN
GLOBAL DIVIDEND OPPORTUNITY FUND)
SHARES SECURITY NAME VALUE
---------- --------------------------------------------------------------------------- ------------
COMMON STOCKS: 55.28%
AUSTRALIA: 2.26%
500,000 WESTPAC BANKING CORPORATION (FINANCIALS, Commercial Banks) $ 10,851,874
------------
BRAZIL: 0.14%
25,000 VIVO PARTICIPACOES SA, ADR (TELECOMMUNICATION SERVICES, Wireless
Telecommunication Services) 668,500
------------
FINLAND: 0.48%
100,004 FORTUM OYJ (UTILITIES, Electric Utilities) 2,326,217
------------
FRANCE: 5.58%
200,000 BOUYGUES SA (INDUSTRIALS, Construction & Engineering) 8,444,416
700,000 FRANCE TELECOM SA (TELECOMMUNICATION SERVICES, Diversified
Telecommunication Services) 14,659,141
200,000 SUEZ ENVIRONNEMENT SA (UTILITIES, Multi-Utilities) 3,721,798
26,825,355
------------
GERMANY: 6.25%
706,274 DEUTSCHE POST AG (INDUSTRIALS, Air Freight & Logistics) 12,264,082
300,000 E.ON AG (UTILITIES, Electric Utilities) 8,950,690
125,000 RWE AG (UTILITIES, Multi-Utilities) 8,827,217
30,041,989
------------
ITALY: 17.56%
5,000,000 ENEL SPA (UTILITIES, Electric Utilities) 24,548,100
1,000,000 ENI SPA (ENERGY, Oil, Gas & Consumable Fuels) 20,446,433
5,500,000 HERA SPA (UTILITIES, Multi-Utilities) 10,435,630
3,221,354 MEDIASET SPA (CONSUMER DISCRETIONARY, Media) 20,706,189
2,000,000 TERNA SPA (UTILITIES, Electric Utilities) 8,314,101
84,450,453
------------
SPAIN: 2.10%
500,000 IBERDROLA SA (UTILITIES, Electric Utilities) 3,528,280
150,000 RED ELECTRICA DE ESPANA (UTILITIES, Electric Utilities) 6,567,879
10,096,159
------------
SWEDEN: 3.69%
999,952 TELE2 AB SERIES B (TELECOMMUNICATION SERVICES, Diversified
Telecommunication Services) 17,728,540
------------
UNITED KINGDOM: 2.14%
500,000 SEVERN TRENT PLC (UTILITIES, Water Utilities) 10,277,928
------------
UNITED STATES: 15.08%
131,000 AMERESCO INCORPORATED CLASS A (INDUSTRIALS, Building Products) 1,310,000
100,000 AMERICAN WATER WORKS COMPANY INCORPORATED (UTILITIES, Water Utilities) 2,138,000
250,000 CHATHAM LODGING TRUST (FINANCIALS, Real Estate Investment Trusts)+ 3,792,500
100,000 COLONY FINANCIAL INCORPORATED (FINANCIALS, Real Estate Investment Trusts) 1,786,000
50,000 CONSTELLATION ENERGY GROUP INCORPORATED (UTILITIES, Independent Power
Producers & Energy Traders) 1,580,000
42,500 CREXUS INVESTMENT CORPORATION (FINANCIALS, Real Estate Investment Trusts) 512,550
175,000 EQT CORPORATION (ENERGY, Oil, Gas & Consumable Fuels) 6,419,000
775,000 EXCEL TRUST INCORPORATED (FINANCIALS, Real Estate Investment Trusts)+ 8,866,000
250,000 EXCO RESOURCES INCORPORATED (ENERGY, Oil, Gas & Consumable Fuels) 3,627,500
25,000 FIRSTENERGY CORPORATION (UTILITIES, Electric Utilities) 942,500
150,000 HAWAIIAN ELECTRIC INDUSTRIES INCORPORATED (UTILITIES, Electric Utilities) 3,532,500
175,000 KAYNE ANDERSON MLP INVESTMENT COMPANY (ENERGY, Oil, Gas & Consumable Fuels) 4,704,000
70,000 MIDDLESEX WATER COMPANY (UTILITIES, Water Utilities) 1,158,500
140,000 NATIONAL FUEL GAS COMPANY (UTILITIES, Gas Utilities) 6,727,000
25,000 NEXTERA ENERGY INCORPORATED (UTILITIES, Electric Utilities) 1,307,500
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 OR SEMI-ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL
INFORMATION ABOUT THE FUND'S SECURITY VALUATION POLICIES AND ABOUT CERTAIN
SECURITY TYPES INVESTED IN BY THE FUND.
1
PORTFOLIO OF INVESTMENTS - JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANATGE GLOBAL DIVIDEND OPPORTUNITY FUND (FORMERLY, EVERGREEN
GLOBAL DIVIDEND OPPORTUNITY FUND)
SHARES SECURITY NAME VALUE
---------- --------------------------------------------------------------------------- ------------
UNITED STATES (continued)
340,000 NISKA GAS STORAGE PARTNERS LLC (ENERGY, Oil, Gas & Consumable Fuels) $ 6,524,600
40,000 PENNICHUCK CORPORATION (UTILITIES, Water Utilities)(I) 900,000
50,000 SCANA CORPORATION (UTILITIES, Multi-Utilities) 1,915,500
20,000 SEMPRA ENERGY (UTILITIES, Multi-Utilities) 995,000
339,999 SHENANDOAH TELECOMMUNICATIONS COMPANY (TELECOMMUNICATION SERVICES, Wireless
Telecommunication Services)(I) 6,623,181
280,000 STARWOOD PROPERTY TRUST INCORPORATED (FINANCIALS, Real Estate Investment
Trusts) 4,972,800
30,000 VISA INCORPORATED CLASS A (INFORMATION TECHNOLOGY, IT Services) 2,200,500
72,535,131
------------
TOTAL COMMON STOCKS (COST $274,046,768) 265,802,146
------------
CONVERTIBLE PREFERRED STOCK: 0.88%
YIELD MATURITY DATE
------ -------------
UNITED STATES: 0.88%
4,000 EL PASO CORPORATION (ENERGY, Oil, Gas & Consumable Fuels)++ 4.99% 12/31/2049 4,260,000
TOTAL CONVERTIBLE PREFERRED STOCK (COST $2,720,560) 4,260,000
------------
PREFERRED STOCKS: 31.64%
YIELD
------
NETHERLANDS: 1.57%
100,000 AEGON NV (FINANCIALS, Insurance) 6.375% 2,015,000
144,532 ING GROEP NV (FINANCIALS, Diversified Financial Services) 7.05 3,013,492
117,000 ING GROEP NV (FINANCIALS, Diversified Financial Services) 7.375 2,506,140
7,534,632
------------
SPAIN: 1.19%
205,040 SANTANDER BANCORP (FINANCIALS, Commercial Banks) 10.50 5,741,120
------------
UNITED KINGDOM: 1.72%
40,000 BARCLAYS PLC SERIES 2 (FINANCIALS, Commercial Banks) 6.625 911,200
20,000 BARCLAYS PLC, (FINANCIALS, Commercial Banks) 8.125 518,600
175,000 HSBC HOLDINGS PLC, (FINANCIALS, Commercial Banks) 8.00 4,546,500
90,000 LLOYDS BANKING GROUP PLC (FINANCIALS, Commercial Banks) 8.00 2,294,100
8,270,400
------------
UNITED STATES: 27.16%
20,000 ATP OIL & GAS (ENERGY, Oil, Gas & Consumable Fuels)++ 8.00 1,099,064
100,000 BANK OF AMERICA CORPORATION SERIES 5 (FINANCIALS, Diversified Financial
Services) 6.37 1,745,000
33,000 BANK OF AMERICA CORPORATION (FINANCIALS, Diversified Financial Services) 7.75 776,490
100,000 BANK OF AMERICA CORPORATION (FINANCIALS, Diversified Financial Services) 8.20 2,532,000
200,000 BB&T CAPITAL TRUST VII (FINANCIALS, Diversified Financial Services) 8.10 5,242,000
200,000 CALENERGY CAPITAL TRUST III (UTILITIES, Multi-Utilities) 6.50 9,325,000
66,124 CONNECTICUT LIGHT & POWER COMPANY SERIES 1963 (UTILITIES, Electric
Utilities) 4.50 2,605,702
53,850 CONSOLIDATED EDISON INCORPORATED SERIES A (UTILITIES, Electric Utilities) 5.00 4,819,575
11,005 CONSOLIDATED EDISON INCORPORATED SERIES D (UTILITIES, Electric Utilities) 4.65 970,160
30,214 CONSTELLATION ENERGY GROUP INCORPORATED SERIES A (UTILITIES, Independent
Power Producers & Energy Traders) 8.625 790,398
5,120 DAYTON POWER & LIGHT COMPANY SERIES B (UTILITIES, Electric Utilities) 3.75 334,290
9,416 DAYTON POWER & LIGHT COMPANY SERIES C (UTILITIES, Electric Utilities) 3.75 675,304
17,500 DAYTON POWER & LIGHT COMPANY SERIES C (UTILITIES, Electric Utilities) 3.90 1,214,610
130,000 DUQUESNE LIGHT COMPANY (UTILITIES, Electric Utilities) 6.50 6,421,774
34,710 E.I. DUPONT DE NEMOURS & COMPANY (MATERIALS, Chemicals) 4.50 2,933,689
7,565 ENTERGY ARKANSAS INCORPORATED (UTILITIES, Electric Utilities) 4.32 588,825
THE PORTFOLIO OF INVESTMENTS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES TO FINANCIAL STATEMENTS WHICH ARE INCLUDED IN THE FUND'S
AUDITED ANNUAL REPORT OR SEMI-ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL
INFORMATION ABOUT THE FUND'S SECURITY VALUATION POLICIES AND ABOUT CERTAIN
SECURITY TYPES INVESTED IN BY THE FUND.
2
PORTFOLIO OF INVESTMENTS - JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANATGE GLOBAL DIVIDEND OPPORTUNITY FUND (FORMERLY, EVERGREEN
GLOBAL DIVIDEND OPPORTUNITY FUND)
SHARES SECURITY NAME YIELD VALUE
---------- -------------------------------------------------------------------------- ------ ------------
UNITED STATES (continued)
2,732 ENTERGY ARKANSAS INCORPORATED (UTILITIES, Electric Utilities) 4.56% $ 217,521
8,444 ENTERGY ARKANSAS INCORPORATED (UTILITIES, Electric Utilities) 6.08 807,849
400,000 ENTERGY ARKANSAS INCORPORATED (UTILITIES, Electric Utilities) 6.45 9,525,000
13,578 ENTERGY ARKANSAS INCORPORATED SERIES 1965 (UTILITIES, Electric Utilities) 4.56 1,056,963
100,000 ENTERGY LOUISIANA LLC (UTILITIES, Electric Utilities) 6.00 2,548,000
200,000 ENTERGY LOUISIANA, LLC (UTILITIES, Electric Utilities) 6.95 18,325,000
3,248 ENTERGY MISSISSIPPI INCORPORATED (UTILITIES, Electric Utilities) 4.36 240,555
10,679 ENTERGY MISSISSIPPI INCORPORATED (UTILITIES, Electric Utilities) 4.92 928,625
6,102 ENTERGY NEW ORLEANS INCORPORATED (UTILITIES, Electric Utilities) 4.75 497,526
11,893 ENTERGY NEW ORLEANS INCORPORATED (UTILITIES, Electric Utilities) 5.56 1,089,021
12,500 FPC CAPITAL TRUST I SERIES A (FINANCIALS, Diversified Financial Services) 7.10 320,750
10,000 HELLER FINANCIAL INCORPORATED (FINANCIALS, Diversified Financial Services) 6.69 943,750
20,000 INDIANAPOLIS POWER & LIGHT COMPANY, (UTILITIES, Electric Utilities) 4.20 1,839,376
101,100 INTERSTATE POWER AND LIGHT COMPANY (UTILITIES, Electric Utilities) 8.375 2,791,371
40,000 JPMORGAN CHASE CAPITAL XXIX (FINANCIALS, Diversified Financial Services) 6.70 988,000
30,000 MERRILL LYNCH CAPITAL TRUST I (FINANCIALS, Capital Markets) 6.45 667,500
1,900 NEW YORK STATE ELECTRIC & GAS CORPORATION (UTILITIES, Electric Utilities) 3.75 132,211
19,840 PACIFIC ENTERPRISES (UTILITIES, Gas Utilities) 4.40 1,617,581
126,000 PACIFIC GAS & ELECTRIC COMPANY SERIES D (UTILITIES, Electric Utilities) 5.00 2,788,380
39,900 PACIFIC GAS & ELECTRIC COMPANY SERIES I (UTILITIES, Electric Utilities) 4.36 788,025
130,000 PACIFIC GAS & ELECTRIC COMPANY (UTILITIES, Electric Utilities) 4.80 2,847,000
250,000 PNC CAPITAL TRUST E (FINANCIALS, Diversified Financial Services) 7.75 6,520,000
75,000 PRINCIPAL FINANCIAL GROUP SERIES A (FINANCIALS, Insurance) 5.56 6,285,938
100,000 PROTECTIVE LIFE CORPORATION (FINANCIALS, Insurance) 8.00 2,207,000
12,000 SCANA CORPORATION SERIES A (UTILITIES, Multi-Utilities) 7.70 334,200
48,100 SOUTHERN CALIFORNIA EDISON COMPANY SERIES B (UTILITIES, Electric Utilities) 4.08 911,495
85,000 SOUTHERN CALIFORNIA EDISON COMPANY SERIES D (UTILITIES, Electric Utilities) 4.32 1,656,642
200,000 SOVEREIGN CAPITAL TRUST V (FINANCIALS, Commercial Banks) 7.75 5,090,000
65,000 SUNTRUST CAPITAL IX (FINANCIALS, Diversified Financial Services) 7.875 1,652,950
1,300 UNION ELECTRIC COMPANY SERIES 1969 (UTILITIES, Electric Utilities) 4.00 95,224
14,600 UNION ELECTRIC COMPANY (UTILITIES, Electric Utilities) 4.50 1,077,205
120,000 VORNADO REALTY LP (FINANCIALS, Real Estate Investment Trusts) 7.875 3,128,400
6,000 XCEL ENERGY INCORPORATED (UTILITIES, Multi-Utilities) 3.60 405,000
52,320 XCEL ENERGY INCORPORATED (UTILITIES, Multi-Utilities) 4.10 4,071,150
30,030 XCEL ENERGY INCORPORATED (UTILITIES, Multi-Utilities) 4.16 2,417,415
19,880 XCEL ENERGY INCORPORATED (UTILITIES, Multi-Utilities) 4.56 1,707,692
130,594,196
------------
TOTAL PREFERRED STOCKS (COST $141,877,809) 152,140,348
------------
CLOSED END MUTUAL FUNDS: 0.91%
UNITED STATES: 0.91%
175,000 TORTOISE ENERGY CAPITAL CORPORATION (CLOSED END INVESTMENT COMPANIES) 4,375,000
TOTAL CLOSED END MUTUAL FUNDS (COST $4,375,000) 4,375,000
------------
SHORT-TERM INVESTMENTS: 4.87%
YIELD
------
INVESTMENT COMPANIES: 4.87%
23,405,477 WELLS FARGO ADVANTAGE MONEY MARKET TRUST (L)(U) 0.31% 23,405,477
TOTAL SHORT-TERM INVESTMENTS (COST $23,405,477) 23,405,477
------------
THE PORTFOLIO OF INVESTMENTS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES TO FINANCIAL STATEMENTS WHICH ARE INCLUDED IN THE FUND'S
AUDITED ANNUAL REPORT OR SEMI-ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL
INFORMATION ABOUT THE FUND'S SECURITY VALUATION POLICIES AND ABOUT CERTAIN
SECURITY TYPES INVESTED IN BY THE FUND.
3
PORTFOLIO OF INVESTMENTS - JULY 31, 2010 (UNAUDITED)
WELLS FARGO ADVANATGE GLOBAL DIVIDEND OPPORTUNITY FUND (FORMERLY, EVERGREEN
GLOBAL DIVIDEND OPPORTUNITY FUND)
TOTAL INVESTMENTS IN SECURITIES
(COST $446,425,614)* 93.58% $449,982,971
OTHER ASSETS AND LIABILITIES, NET 6.42 30,845,722
------ ------------
TOTAL NET ASSETS 100.00% $480,828,693
------ ------------
+ NON-INCOME EARNING SECURITIES.
(I) ILLIQUID SECURITY.
++ SECURITIES THAT MAY BE RESOLD TO "QUALIFIED INSTITUTIONAL BUYERS" UNDER
RULE 144A OR SECURITIES OFFERED PURSUANT TO SECTION 4(2) OF THE SECURITIES
ACT OF 1933, AS AMENDED.
(L) INVESTMENT IN AN AFFILIATE.
(U) RATE SHOWN IS THE 7-DAY ANNUALIZED YIELD AT PERIOD END.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $451,241,808 AND NET UNREALIZED
APPRECIATION (DEPRECIATION) CONSISTS OF:
GROSS UNREALIZED APPRECIATION $ 27,093,772
GROSS UNREALIZED DEPRECIATION (28,352,609)
------------
NET UNREALIZED DEPRECIATION $ (1,258,837)
THE PORTFOLIO OF INVESTMENTS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES TO FINANCIAL STATEMENTS WHICH ARE INCLUDED IN THE FUND'S
AUDITED ANNUAL REPORT OR SEMI-ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL
INFORMATION ABOUT THE FUND'S SECURITY VALUATION POLICIES AND ABOUT CERTAIN
SECURITY TYPES INVESTED IN BY THE FUND.
4
WELLS FARGO ADVANTAGE GLOBAL DIVIDEND OPPORTUNITY FUND
NOTE TO PORTFOLIO OF INVESTMENTS (unaudited) July 31, 2010
The Fund's portfolio of investments as of the date on the cover of this report
has not been audited. This report is provided for the general information of the
Fund's shareholders. For more information regarding the Fund and its holdings,
please see the Fund's most recent prospectus and annual report.
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. 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 Funds' Fair Valuation
Procedures.
Securities denominated in foreign currencies are translated into U.S. dollars
using the closing rates of exchange in effect on the day of valuation.
Many securities markets and exchanges outside the U.S. close prior to the close
of the New York Stock Exchange and therefore may not fully reflect trading or
events that occur after the close of the principal exchange in which the foreign
investments are traded but before the close of the New York Stock Exchange. If
such trading or events are expected to materially affect the value of the
investments, then those investments are fair valued following procedures
approved by the Board of Trustees. These procedures take into account multiple
factors including movements in U.S. securities markets after foreign exchanges
close. Depending on market activity, such fair valuations may be frequent. In
light of the judgment involved in fair value decisions, there can be no
assurance that a fair value assigned to a particular security is accurate. Such
fair value pricing may result in NAVs that are higher or lower than NAVs based
on the closing price or latest quoted bid price.
Investments in open-end mutual funds 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 by procedures established in good
faith and approved by the Board of Trustees.
The valuation techniques used by the Funds to measure fair value are consistent
with the market approach, income approach and/or cost approach, where
applicable, for each security type.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Assets,
including investment securities, and liabilities denominated in foreign currency
are translated into U.S. dollars at the prevailing rates of exchange at the date
of valuation. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of such
transactions. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded and the
U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets
and liabilities other than investments in securities, at fiscal period-end,
resulting in changes in exchange rates.
The changes in net assets arising from changes in exchange rates and the changes
in net assets resulting from changes in market prices of securities at fiscal
period-end are not separately presented. Such changes are recorded with net
realized and unrealized gain from investments. Gains and loses from certain
foreign currency transactions are treated as ordinary income for U.S. federal
income tax purposes.
OPTIONS
Certain Funds may be subject to equity price risk in the normal course of
pursuing its investment objectives. The Fund may write covered put or call
options. When a Fund writes an option, an amount equal to the premium received
is recorded as a liability and is subsequently adjusted to the current market
value of the written option. Premiums received from written options, which
expire unexercised, are recognized as realized gains from investments on the
expiration date. The difference between the premium received and the amount paid
on effecting a closing purchase transaction, including brokerage commissions, is
treated as a realized gain or loss. If a call option is exercised, the
premium is added to the proceeds from the sale of the underlying security in
calculating the realized gain or loss on the sale. If a put option is exercised,
the premium reduces the cost of the security purchased. The Fund, as a writer of
an option, bears the market risk of an unfavorable change in the price of the
security underlying the written option.
The Fund may also purchase call or put options. The premium is included in the
Statement of Assets and Liabilities as an investment which is subsequently
adjusted to the current market value of the option. Premiums paid for purchased
options which expire are recognized as realized losses from investments on the
expiration date. Premiums paid for purchased options which are exercised or
closed are added to the amount paid or offset against the proceeds on the
underlying security to determine the realized gain or loss. The risk of loss
associated with purchased options is limited to the premium paid.
Options traded on an exchange are regulated and terms of the options are
standardized. Options traded over the counter expose the Fund to counterparty
risk in the event the counterparty does not perform. This risk is mitigated by
having a master netting arrangement between the Fund and the counterparty and by
having the counterparty post collateral to cover the Fund's exposure to the
counterparty.
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, 2010, the inputs used in valuing the Fund's assets, which are
carried at fair value, were as follows:
SIGNIFICANT
OTHER SIGNIFICANT
OBSERVABLE UNOBSERVABLE
QUOTED PRICES INPUTS INPUTS
INVESTMENTS IN SECURITIES (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
------------------------- ------------- ----------- ------------ ------------
Equity securities
COMMON STOCKS $265,802,146 $ 0 $0 $265,802,146
CONVERTIBLE PREFERRED STOCKS 0 4,260,000 0 4,260,000
PREFERRED STOCKS 80,155,123 71,985,225 0 152,140,348
CLOSED END FUNDS 4,375,000 0 0 4,375,000
Investment companies 23,405,477 0 0 23,405,477
------------ ----------- -- ------------
$373,737,746 $76,245,225 $0 $449,982,971
------------ ----------- -- ------------
As of July 31, 2010, the inputs used in valuing the Fund's other financial
instruments, which are carried at fair value, were as follows:
SIGNIFICANT
OTHER SIGNIFICANT
OBSERVABLE UNOBSERVABLE
QUOTED PRICES INPUTS INPUTS
OTHER FINANCIAL INSTRUMENTS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
--------------------------- ------------- ----------- ------------ ------------
WRITTEN OPTIONS $0 $(1,320,602) $0 $(1,320,602))
The following is a reconciliation of assets in which significant unobservable
inputs (Level 3) were used in determining fair value:
PREFERRED WRITTEN
STOCKS OPTIONS
--------- ---------
Balance as of Novemeber 1, 2009 $ 701,424 $ (49,648)
Realized gains or losses (45,687) 186,115
Change in unrealized gains or
losses 125,447 (136,467)
Net purchases (sales) (781,184) 0
Transfers in and/or out of
Level 3 0 0
--------- ---------
Balance as of July 31, 2010 $ 0 $ 0
--------- ---------
Change in unrealized gains or losses included in
earnings relating to securities still held at
July 31, 2010 $ 0 $ 0
--------- ---------
DERIVATIVE TRANSACTIONS
During the nine months ended July 31, 2010, the Fund entered into written
options for hedging purposes.
Open call options written as of July 31, 2010 were as follows:
Expiration Number Strike Market Premiums
Date of Contracts Price Value Received
---------- ------------ ---------- -------- --------
08/20/2010 Amsterdam Exchange Index 465 347 EUR $ 76,957 $111,208
08/20/2010 CAC 40 Index 427 3,774 EUR 147,792 204,352
08/20/2010 DAX Index 497 6,489 EUR 24,287 99,266
08/20/2010 IBEX 35 Index 1,511 10,723 EUR 329,444 343,105
08/20/2010 NASDAQ 100 Index 107 1,956 USD 54,142 109,568
08/20/2010 OMX Stockholm 30 Index 1,379 1,103 SEK 58,830 132,551
08/20/2010 Russell 2000 Index 315 665 USD 317,205 232,785
08/20/2010 S&P 500 Index 1,826 116 USD 153,384 92,724
08/20/2010 SX5E Index 566 2,848 EUR 122,439 198,509
08/20/2010 UKX Index 247 5,519 GBP 36,122 77,474
The Fund had average premiums received on written options in the amount of
$1,099,287 during the nine months ended July 31, 2010.
ITEM 2. CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that the Wells Fargo Advantage
Global Dividend Opportunity 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 changes in the Fund's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
or in other factors 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 Global Dividend
Opportunity Fund
By: /s/ Karla M. Rabusch
Karla M. Rabusch
President
Date: September 28, 2010
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 Global Dividend
Opportunity Fund
By: /s/ Karla M. Rabusch
Karla M. Rabusch
President
Date: September 28, 2010
By: /s/ Kasey Phillips
Kasey Phillips
Treasurer
Date: September 28, 2010