N-Q 1 d584423dnq.htm DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC. <![CDATA[Duff & Phelps Global Utility Income Fund Inc. ]]>

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            811-22533                    

                  Duff & Phelps Global Utility Income Fund Inc.                      

(Exact name of registrant as specified in charter)

200 South Wacker Drive, Suite 500

                                                     Chicago, Illinois 60606                                                     

(Address of principal executive offices) (Zip code)

 

   

Alan M. Meder

Duff & Phelps Global Utility Income Fund Inc.

200 South Wacker Drive, Suite 500

Chicago, Illinois 60606

   

                Lawrence R. Hamilton, Esq.

                Mayer Brown LLP

                71 South Wacker Drive

                Chicago, Illinois 60606

   
(Name and address of agent for service)

Registrant’s telephone number, including area code:  866-270-7598    

Date of fiscal year end:  October 31

Date of reporting period:   July 31, 2013

 

Item 1. Schedule of Investments.

See the Statement of Net Assets below.

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS

July 31, 2013

(Unaudited)

 

Shares     

Description

    Value
(Note 1)		  

 

COMMON STOCKS & MLP INTERESTS—130.3%

  

   ¢ ELECTRIC, GAS AND WATER—45.5%   
  19,500,000      

Duet Group (Australia)

    $ 37,859,653   
  531,333      

Duke Energy Corp.(1)

      37,724,643   
  1,384,000      

GDF Suez (France)

      29,035,866   
  587,000      

Integrys Energy Group, Inc.

      36,863,600   
  4,537,000      

National Grid plc (United Kingdom)

      54,283,875   
  1,570,000      

Pepco Holdings, Inc.

      32,263,500   
  1,045,000      

PPL Corp.

      33,199,650   
  1,362,000      

Scottish & Southern Energy plc (United Kingdom)

      32,633,300   
  3,045,000      

United Utilities Group plc (United Kingdom)

      33,421,579   
  1,136,000      

Westar Energy, Inc.

      38,158,240   
     

 

 

  
        365,443,906   
     

 

 

  
   ¢ OIL & GAS STORAGE AND TRANSPORTATION—38.3%   
  520,300      

Access Midstream Partners LP

      24,438,491   
  4,287,455      

APA Group (Australia)

      23,122,729   
  310,700      

Buckeye Partners LP

      22,100,091   
  247,184      

DCP Midstream Partners LP

      13,019,181   
  688,861      

Enbridge Energy Partners LP

      21,781,785   
  536,346      

Energy Transfer Partners LP(1)

      27,922,173   
  401,400      

Enterprise Products Partners LP

      24,898,842   
  280,500      

Genesis Energy LP

      13,982,925   
  283,803      

Kinder Morgan Energy Partners LP

      23,416,586   
  326,500      

MarkWest Energy Partners LP

      22,923,565   
  502,465      

Targa Resources Partners LP

      25,042,856   
  353,834      

TC Pipelines LP

      18,194,144   
  427,320      

Teekay LNG Partners LP (Marshall Islands)(1)

      17,733,780   
  384,919      

Teekay Offshore Partners LP (Marshall Islands)

      12,055,663   
  339,600      

Williams Partners LP

      17,054,712   
     

 

 

  
        307,687,523   
     

 

 

  
   ¢ TELECOMMUNICATIONS—46.5%   
  930,000      

AT&T, Inc.

      32,801,100   
  1,075,000      

CenturyLink, Inc.

      38,538,750   
  7,315,000      

Chorus Ltd. (New Zealand)

      15,774,782   
  2,382,000      

Deutsche Telekom AG Registered Shares (Germany)

      28,989,112   
  4,870,000      

Frontier Communications Corp.

      21,233,200   
  15,557,000      

Singapore Telecommunications Ltd. (Singapore)

      48,108,754   
  5,382,000      

TDC A/S (Denmark)

      47,095,201   
  6,075,000      

Telecom Corporation of New Zealand Ltd. (New Zealand)

      10,917,270   
  11,706,000      

Telstra Corp., Ltd. (Australia)

      52,504,598   
  8,767,000      

Vodafone Group plc (United Kingdom)

      26,340,344   
  6,095,200      

Windstream Corp.

      50,894,920   
     

 

 

  
        373,198,031   
     

 

 

  
   Total Common Stocks & MLP Interests (Cost $902,276,880)      1,046,329,460   
     

 

 

  

 

SHORT-TERM INVESTMENTS—1.0%

  

   ¢ MONEY MARKET MUTUAL FUND—1.0%   
  8,018,415      

Fidelity Institutional Money Market Portfolio I

(Seven-day effective yield 0.07%)

      8,018,415   
     

 

 

  
   Total Short-Term Investments (Cost $8,018,415)      8,018,415   
     

 

 

  
  TOTAL INVESTMENTS BEFORE WRITTEN OPTIONS—131.3%   

 

(Cost $910,295,295)

    $ 1,054,347,875   
     

 

 

  

The accompanying notes are an integral part of this financial statement.

 

1

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

July 31, 2013

(Unaudited)

 

Contracts

   

Description

    Value
(Note 1)		  

WRITTEN OPTIONS—(0.0)%

   
  

¢    CALL OPTIONS—(0.0)%

      

2,552

   

Duke Energy Corp. Expiration 10/13/13

    $ (224,576 ) 

1,300

   

Energy Transfer Partners LP Expiration 9/21/13

      (45,500 ) 

975

   

Teekay LNG Partners LP Expiration 8/17/13

      (39,000 ) 
     

 

 

  
  

Total Written Options (Premiums received $312,432)

      (309,076 ) 
     

 

 

  
TOTAL INVESTMENTS AFTER WRITTEN OPTIONS—131.3%
(Cost $909,982,863)		    $ 1,054,038,799   
     

 

 

  

Borrowings—(32.4)%

      (260,000,000 ) 

Other assets in excess of other liabilities—1.1%

      8,663,353   
     

 

 

  
NET ASSETS APPLICABLE TO COMMON STOCK—100.0%    $ 802,702,152   
     

 

 

  
NET ASSET VALUE PER SHARE OF COMMON STOCK
($802,702,152 / 37,929,806)		    $ 21.16   
     

 

 

  

 

(1) 

All or a portion segregated as collateral for written options under an escrow receipt.

The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common stock of the Fund.     

 

 

 

 

The accompanying notes are an integral part of this financial statement.

 

2

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

July 31, 2013

(Unaudited)

SECTOR ALLOCATION *

Electric, Gas and Water

      35 % 

Telecommunications

      35   

Oil & Gas Storage and Transportation

      29   

Other (includes short-term investments)

      1   

Total

      100 % 

 

 

 

COUNTRY WEIGHTING *

United States

      55 % 

United Kingdom

      14   

Australia

      11   

Singapore

      5   

Denmark

      4   

Marshall Islands

      3   

France

      3   

Other

      5   

Total

      100 % 

 

 

 

CURRENCY EXPOSURE *

United States Dollar

      57 % 

British Pound

      14   

Australian Dollar

      11   

Euro

      6   

Singapore Dollar

      5   

Danish Krone

      4   

New Zealand Dollar

      3   

Total

      100 % 

 

* Percentages are based on total investments before written options rather than net assets applicable to common stock and include securities pledged as collateral under the Fund’s credit agreement.     

 

 

The accompanying notes are an integral part of this financial statement.

 

3

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

July 31, 2013

(Unaudited)

Note 1. Security Valuation

The Fund’s investments are carried at fair value which is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes is summarized in the three broad levels listed below.

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 spreads, credit risks, etc.)

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. For more information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements contained in its semi-annual report. The following is a summary of the inputs used to value each of the Fund’s investments at July 31, 2013:

 

      Level 1  

Common stocks & MLP interests

    $ 1,046,329,460   

Money market mutual fund

      8,018,415   

Written options

      (309,076 ) 
  

 

 

  

Total

    $ 1,054,038,799   
  

 

 

  

There were no Level 2 or Level 3 priced securities held and there were no transfers between Level 1 and Level 2 related to securities held at July 31, 2013.

Note 2. Federal Income Tax Information

At October 31, 2012, the Fund’s most recent fiscal tax year-end, the federal tax cost and aggregate gross unrealized appreciation (depreciation) were as follows:

 

   

Federal

Tax Cost

   Unrealized
Appreciation		   Unrealized
Depreciation		   Net Unrealized
Appreciation

Investments

   $925,229,474     $103,992,292   ($33,954,895)   $70,037,397

Written options

          (573,052)            503,852                        0             503,852

The difference between the book basis and tax basis of unrealized appreciation (depreciation) and cost of investments is primarily attributable to investments in Passive Foreign Investment Companies and MLP earnings and basis adjustments.

Other information regarding the Fund is available on the Fund’s website at www.dpgfund.com or the Securities and Exchange Commission’s website at www.sec.gov.

Item 2. Controls and Procedures.

 

 

(a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934.

 

 

(b)

There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) 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.

Item 3. Exhibits.

 

Exhibit 99.CERT

   

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002

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.

(Registrant)      Duff & Phelps Global Utility Income Fund Inc.                                      

 

By (Signature and Title)           /s/ Nathan I. Partain                                                        
          Nathan I. Partain, President and Chief Executive Officer
          (Principal Executive Officer)

Date    09/25/13                                                                                                                     

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.

 

By (Signature and Title)           /s/ Nathan I. Partain                                                     
          Nathan I. Partain, President and Chief Executive Officer
          (Principal Executive Officer)

Date    09/25/13                                                                                                                     

 

By (Signature and Title)           /s/ Alan M. Meder                                               
          Alan M. Meder, Treasurer and Assistant Secretary
          (Principal Financial and Accounting Officer)

Date    09/25/13