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    Lawrence R. Hamilton, Esq.  
  Duff & Phelps Global Utility Income Fund Inc.    Mayer Brown LLP  
  200 South Wacker Drive, Suite 500    71 South Wacker Drive  
  Chicago, Illinois 60606    Chicago, Illinois 60606  
  (Name and address of agent for service)  

Registrant’s telephone number, including area code: 312-368-5510

Date of fiscal year end:   October 31    

Date of reporting period:   July 31, 2015


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, 2015

(Unaudited)

 

Shares     

Description

   Value
(Note 1)
 

 

COMMON STOCKS & MLP INTERESTS—127.5%

  

   ¢ ELECTRIC, GAS AND WATER—64.1%   
  578,000       DTE Energy Co.      $46,505,880   
  21,937,500       Duet Group (Australia)      35,277,542   
  441,000       Duke Energy Corp.      32,731,020   
  1,322,000       Fortum OYJ (Finland)      23,230,171   
  5,792,000       National Grid plc (United Kingdom)      77,163,351   
  1,755,000       PPL Corp.      55,826,550   
  2,829,000       Scottish & Southern Energy plc (United Kingdom)      66,931,132   
  925,000       Southern Co.      41,375,250   
  4,116,500       United Utilities Group plc (United Kingdom)      57,342,360   
  564,000       WEC Energy Group, Inc.      27,636,000   
  830,000       Westar Energy, Inc.      31,249,500   
     

 

 

 
        495,268,756   
     

 

 

 
   ¢ OIL & GAS STORAGE AND TRANSPORTATION—42.6%   
  4,287,455       APA Group (Australia)      28,424,666   
  247,184       DCP Midstream Partners LP      7,712,141   
  688,861       Enbridge Energy Partners LP      21,650,901   
  536,346       Energy Transfer Partners LP      27,460,915   
  802,800       Enterprise Products Partners LP      22,743,324   
  280,500       Genesis Energy LP      12,451,395   
  1,431,854       Kinder Morgan, Inc.      49,599,423   
  350,000       Knot Offshore Partners LP (Marshall Islands)      5,463,500   
  367,500       MarkWest Energy Partners LP      24,049,200   
  285,716       NuStar Energy LP      16,162,954   
  502,465       Targa Resources Partners LP      18,812,290   
  278,834       TC Pipelines LP      15,977,188   
  387,020       Teekay LNG Partners LP (Marshall Islands)      10,646,920   
  384,919       Teekay Offshore Partners LP (Marshall Islands)      6,655,249   
  600,000       TransCanada Corp. (Canada)      23,319,188   
  814,270       Williams Partners LP      37,562,275   
     

 

 

 
        328,691,529   
     

 

 

 
   ¢ TELECOMMUNICATIONS—20.8%   
  1,119,440       Communications Sales & Leasing, Inc.      23,340,324   
  4,154,000       Frontier Communications Corp.      19,606,880   
  15,565,000       Spark New Zealand Ltd. (New Zealand)      30,412,431   
  7,351,000       TeliaSonera AB (Sweden)      44,693,535   
  7,610,000       Telstra Corp., Ltd. (Australia)      36,100,886   
  1,303,612       Windstream Holdings, Inc.      6,322,518   
     

 

 

 
        160,476,574   
     

 

 

 
   Total Common Stocks & MLP Interests (Cost $892,900,837)      984,436,859   
     

 

 

 

 

SHORT-TERM INVESTMENTS—4.1%

  
   ¢ MONEY MARKET MUTUAL FUND—4.1%   
  31,659,739      

Fidelity Institutional Money Market Portfolio I

(Seven-day effective yield 0.130%)

     31,659,739   
     

 

 

 
   Total Short-Term Investments (Cost $31,659,739)      31,659,739   
     

 

 

 

 

TOTAL INVESTMENTS—131.6%(1)

  

 

(Cost $924,560,576)

     $1,016,096,598   
     

 

 

 

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, 2015

(Unaudited)

 

Borrowings—(33.7)%

     (260,000,000

Other assets less other liabilities—2.1%

     16,218,741   
     

 

 

 

NET ASSETS APPLICABLE TO COMMON STOCK—100.0%

     $772,315,339   
     

 

 

 

 

(1) 

All or a portion of the total investments have been pledged as collateral for borrowings.

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, 2015

(Unaudited)

 

SECTOR ALLOCATION *

Electric, Gas and Water

     49

Oil & Gas Storage and Transportation

     32   

Telecommunications

     16   

Other (includes short-term investments)

     3   

Total

     100

 

COUNTRY WEIGHTINGS *

United States

     56

United Kingdom

     20   

Australia

     10   

Sweden

     5   

New Zealand

     3   

Canada

     2   

Finland

     2   

Marshall Islands

     2   

Total

     100

 

CURRENCY EXPOSURE *

United States Dollar

     58

British Pound

     20   

Australian Dollar

     10   

Swedish Krona

     5   

New Zealand Dollar

     3   

Canadian Dollar

     2   

Euro

     2   

Total

     100

 

* Percentages are based on total investments rather than net assets applicable to common stock.

 

 

 

 

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, 2015

(Unaudited)

Note 1. Investment 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, 2015:

 

      Level 1  

Common stocks & MLP interests

     $984,436,859   

Money market mutual fund

     31,659,739   
  

 

 

 

Total

     $1,016,096,598   
  

 

 

 

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, 2015.

Note 2. Federal Income Tax Information

At October 31, 2014, 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

  $878,208,288     $310,393,073   $(8,318,776)   $302,074,297

The difference between the book basis and tax basis of unrealized appreciation (depreciation) and cost of investments is primarily attributable to investments in MLPs.

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    09/22/15                                                                                                                                 

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    09/22/15                                                                                                                                 

 

By (Signature and Title)*     /s/ Alan M. Meder                                                                               

 

        Alan M. Meder

 

        Treasurer and Assistant Secretary

 

        (Principal Financial Officer)

Date    09/22/15