UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21765
Macquarie Global Infrastructure Total Return Fund Inc.
(Exact name of registrant as specified in charter)
125 West 55th Street, New York, NY 10019
(Address of principal executive offices) (Zip code)
Macquarie Global Infrastructure Total Return Fund Inc.
125 West 55th Street, New York, NY 10019
(Name and address of agent for service)
Registrants telephone number, including area code: 1 (866) 567-4771
Date of fiscal year end: November 30
Date of reporting period: November 30, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. | Reports to Stockholders. |
(a) | The Report to Shareholders is attached herewith. |
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Macquarie Global Infrastructure Total Return Fund Inc. | November 30, 2020 (Unaudited) |
Macquarie Global Infrastructure Total Return Fund Inc. | November 30, 2020 (Unaudited) |
Rank | Stock | Country | Infrastructure Sector1 | % 2 |
1 | Cheniere Energy | United States | Pipelines | 6.10 |
2 | Sempra Energy | United States | Electricity and Gas Distribution | 6.10 |
3 | TC Energy | Canada | Pipelines | 4.90 |
4 | American Electric Power | United States | Electricity Utility | 4.80 |
5 | Sydney Airport | Australia | Airports | 4.40 |
6 | Aena SME | Spain | Airports | 4.20 |
7 | Atlantia | Italy | Toll Roads | 3.90 |
8 | Enbridge | Canada | Pipelines | 3.60 |
9 | United Utilities Group | United Kingdom | Water | 3.50 |
10 | Enav | Italy | Airports | 3.40 |
Country | %
of Fund on November 30, 20201 |
%
Point Change over Period |
%
of Fund on November 30, 20191 |
United States | 34.9 | 2.3 | 32.6 |
Canada | 12.6 | 3.5 | 9.1 |
Italy | 9.7 | (2.6) | 12.3 |
Australia | 8.2 | (5.6) | 13.8 |
United Kingdom | 8.2 | (0.6) | 8.8 |
Spain | 7.4 | 4.7 | 2.7 |
Mexico | 4.2 | (0.7) | 4.9 |
Japan | 3.5 | 1.8 | 1.7 |
France | 2.9 | 0.0 | 2.9 |
New Zealand | 2.5 | 2.5 | 0.0 |
Switzerland | 2.3 | (0.1) | 2.4 |
China | 1.8 | (1.8) | 3.6 |
Brazil | 0.0 | (1.4) | 1.4 |
Netherlands | 0.0 | (1.0) | 1.0 |
Other assets in excess of other liabilities | 1.8 | (0.9) | 2.7 |
Infrastructure Sector2 | %
of Fund on November 30, 20201 |
%
Point Change over Period |
%
of Fund on November 30, 20191 |
Pipelines | 25.0 | (0.6) | 25.6 |
Electric utility | 18.3 | 4.4 | 13.9 |
Airports | 16.7 | 4.1 | 12.6 |
Toll roads | 13.0 | (3.1) | 16.1 |
Electricity and gas distribution | 11.3 | (1.3) | 12.6 |
Water | 7.0 | 0.6 | 6.4 |
Rail / other transportation | 3.5 | 1.8 | 1.7 |
Electricity transmission | 3.4 | (2.7) | 6.1 |
Electricity generation | 0.0 | (1.3) | 1.3 |
Seaports | 0.0 | (1.0) | 1.0 |
Other assets in excess of other liabilities | 1.8 | (0.9) | 2.7 |
Macquarie Global Infrastructure Total Return Fund Inc. | As of November 30, 2020 (Unaudited) |
Security type / country | Percentage of net assets |
Common Stock by Country | 139.03% |
Australia | 11.85% |
Canada | 17.38% |
China/Hong Kong | 2.57% |
France | 4.24% |
Italy | 13.99% |
Japan | 5.03% |
Mexico | 6.01% |
New Zealand | 3.52% |
Spain | 10.65% |
Switzerland | 3.30% |
United Kingdom | 11.84% |
United States | 48.65% |
Master Limited Partnerships | 2.20% |
Total Value of Securities | 141.23% |
Leverage | (44.11%) |
Receivables and Other Assets Net of Liabilities | 2.88% |
Total Net Assets | 100.00% |
Common stock and master limited partnerships by sector | Percentage of net assets |
Airports | 24.03% |
Electric Utility | 26.30% |
Electricity and Gas Distribution | 16.29% |
Electricity Transmission | 4.89% |
Pipelines | 35.90% |
Rail & Other Transportation | 5.03% |
Toll Roads | 18.64% |
Water | 10.15% |
Total | 141.23% |
Macquarie Global Infrastructure Total Return Fund Inc. | November 30, 2020 |
Number of shares | Value (US $) | ||
Common Stock – 139.03%Δ | |||
Australia − 11.85% | |||
Spark Infrastructure Group << | 1,499,880 | $ 2,257,023 | |
Sydney Airport << | 3,840,480 | 18,916,190 | |
Transurban Group << | 1,404,336 | 14,452,557 | |
35,625,770 | |||
Canada − 17.38% | |||
Enbridge << | 503,939 | 15,738,635 | |
Gibson Energy << | 336,159 | 5,399,459 | |
Hydro One 144A #, << | 294,938 | 6,881,205 | |
Pembina Pipeline << | 114,674 | 2,924,465 | |
TC Energy << | 484,729 | 21,323,299 | |
52,267,063 | |||
China/Hong Kong − 2.57% | |||
CLP Holdings << | 822,000 | 7,720,451 | |
7,720,451 | |||
France − 4.24% | |||
Vinci << | 124,941 | 12,742,567 | |
12,742,567 | |||
Italy − 13.99% | |||
Atlantia <<, † | 936,502 | 17,069,386 | |
Enav 144A #, << | 3,319,004 | 14,585,228 | |
Snam << | 927,072 | 5,200,850 | |
Terna Rete Elettrica Nazionale << | 694,126 | 5,193,142 | |
42,048,606 | |||
Japan − 5.03% | |||
East Japan Railway << | 143,600 | 8,924,107 | |
West Japan Railway << | 135,600 | 6,187,724 | |
15,111,831 | |||
Mexico − 6.01% | |||
ALEATICA << | 9,736,364 | 9,741,061 | |
Infraestructura Energetica Nova <<, † | 2,340,431 | 8,341,374 | |
18,082,435 | |||
New Zealand − 3.52% | |||
Auckland International Airport <<, † | 1,938,242 | 10,573,761 | |
10,573,761 | |||
Spain − 10.65% | |||
Aena SME 144A #, <<, † | 112,005 | 18,250,465 | |
Iberdrola << | 861,359 | 11,759,418 |
Number of shares | Value (US $) | ||
Common StockΔ (continued) | |||
Spain (continued) | |||
Sacyr << | 849,706 | $ 1,984,574 | |
Sacyr | 15,735 | 36,751 | |
32,031,208 | |||
Switzerland − 3.30% | |||
Flughafen Zuerich <<, † | 58,676 | 9,930,530 | |
9,930,530 | |||
United Kingdom − 11.84% | |||
National Grid << | 839,307 | 9,492,935 | |
Severn Trent << | 202,668 | 6,454,764 | |
SSE << | 242,229 | 4,330,459 | |
United Utilities Group << | 1,274,979 | 15,304,443 | |
35,582,601 | |||
United States − 48.65% | |||
American Electric Power << | 245,877 | 20,872,499 | |
Atmos Energy << | 65,933 | 6,322,315 | |
Cheniere Energy <<, † | 464,343 | 26,323,605 | |
CMS Energy << | 110,574 | 6,804,724 | |
Essential Utilities << | 193,149 | 8,745,787 | |
Kinder Morgan << | 552,983 | 7,951,896 | |
NextEra Energy << | 188,874 | 13,899,238 | |
NiSource << | 310,396 | 7,511,583 | |
PPL << | 72,151 | 2,050,531 | |
Sempra Energy << | 205,301 | 26,171,771 | |
Southern << | 113,504 | 6,793,214 | |
Southwest Gas Holdings << | 104,640 | 6,723,120 | |
Williams << | 289,612 | 6,076,060 | |
146,246,343 | |||
Total Common Stock (cost $427,465,395) | 417,963,166 | ||
Master Limited Partnerships – 2.20% | |||
Enterprise Products Partners << | 166,293 | 3,226,084 | |
Magellan Midstream Partners << | 82,180 | 3,381,707 | |
Total
Master Limited Partnerships (cost $8,662,204) |
6,607,791 | ||
Total
Value of Securities−141.23% (cost $436,127,599) |
$ 424,570,957 |
Δ | Securities have been classified by country of origin. Aggregate classification by business sector has been presented on page 8 in “Security type / country and sector allocations.” |
<< | Fully or partially pledged as collateral for borrowing transactions. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At November 30, 2020, the aggregate value of Rule 144A securities was $39,716,898, which represents 13.21% of the Fund's net assets. See Note 11 in “Notes to financial statements.” |
† | Non-income producing security. |
(Expressed in US dollars) | November 30, 2020 |
Assets: | |
Investments, at value* | $ 424,570,957 |
Cash | 8,150,790 |
Foreign currencies, at valueΔ | 66,044 |
Dividends receivable | 976,353 |
Foreign tax reclaims receivable | 702,921 |
Prepaid arrangement fees on loan outstanding | 163,288 |
Other assets | 106,224 |
Total Assets | 434,736,577 |
Liabilities: | |
Loans payable | 132,614,000 |
Investment advisory expense payable to affiliates | 968,013 |
Other payables and accrued expenses | 225,566 |
Interest on loans payable | 161,826 |
Administration expense payable | 95,403 |
Directors’ expense payable | 45,295 |
Total Liabilities | 134,110,103 |
Total Net Assets | $ 300,626,474 |
Net Assets Consist of: | |
Paid-in capital | $ 314,099,535 |
Total distributable earnings (loss) | (13,473,061) |
Total Net Assets | $ 300,626,474 |
Net Asset Value | |
Common Shares: | |
Net assets | $ 300,626,474 |
Shares of common stock outstanding at $0.001 par value, 100,000,000 shares authorized | 12,468,293 |
Net asset value per share | $ 24.11 |
*Investments, at cost |
$ 436,127,599 |
ΔForeign currencies, at cost | 65,898 |
(Expressed in US dollars) | Year ended November 30, 2020 |
Investment Income: | |
Dividends | $ 12,478,423 |
Foreign tax withheld | (728,326) |
11,750,097 | |
Expenses: | |
Investment advisory | 3,973,184 |
Interest expense | 1,587,203 |
Legal fees | 275,730 |
Directors | 213,740 |
Administration | 198,876 |
Insurance | 148,507 |
Audit and tax services | 109,491 |
Printing | 74,729 |
Custody | 74,233 |
Transfer agent | 52,126 |
Other expenses | 125,436 |
Total operating expenses | 6,833,255 |
Net Investment Income | 4,916,842 |
Net Realized and Unrealized Gain (Loss): | |
Net realized gain (loss) on: | |
Investments | 3,754,108 |
Foreign currencies | (697,396) |
Foreign currency exchange contracts | (208,081) |
Net realized gain | 2,848,631 |
Net change in unrealized appreciation (depreciation) of: | |
Investments | (24,311,628) |
Foreign currencies | (2,417,247) |
Net change in unrealized appreciation (depreciation) | (26,728,875) |
Net Realized and Unrealized Loss | (23,880,244) |
Net Decrease in Net Assets Resulting from Operations | $ (18,963,402) |
Year ended | |||
11/30/20 | 11/30/19 | ||
Increase (Decrease) in Net Assets Resulting from Operations: | |||
Net investment income | $ 4,916,842 | $ 16,102,277 | |
Net realized gain | 2,848,631 | 1,754,147 | |
Net change in unrealized appreciation (depreciation) | (26,728,875) | 40,493,298 | |
Net increase (decrease) in net assets resulting from operations | (18,963,402) | 58,349,722 | |
Distributions to Shareholders from: | |||
Distributable earnings | (12,372,302) | (20,946,732) | |
Return of capital | (3,711,796) | — | |
Total Distributions to Shareholders | (16,084,098) | (20,946,732) | |
Net Increase (Decrease) in Net Assets | (35,047,500) | 37,402,990 | |
Net Assets: | |||
Beginning of year | 335,673,974 | 298,270,984 | |
End of year | $ 300,626,474 | $ 335,673,974 |
(Expressed in US dollars) | Year ended November 30, 2020 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
Net increase (decrease) in net assets resulting from operations | $ (18,963,402) |
Adjustments
to reconcile net increase (decrease) in net assets from operations to net cash provided by (used for) operating activities: |
|
Purchase of investment securities | (249,584,478) |
Proceeds from disposition of investment securities | 268,922,613 |
Net realized (gain) loss on investments | (3,754,108) |
Net change in unrealized (appreciation) depreciation of investments | 24,311,628 |
Net change in unrealized (appreciation) depreciation of foreign currencies | 2,417,247 |
Return of capital distributions on investments | 485,770 |
(Increase) decrease in receivable for securities sold | 29,753 |
(Increase) decrease in dividends receivable | 255,524 |
(Increase) decrease in foreign tax reclaims receivable | 80,770 |
(Increase) decrease in prepaid arrangement fees on loan outstanding | 43,942 |
(Increase) decrease in other assets | (11,047) |
Increase (decrease) in interest on loans payable | (72,861) |
Increase (decrease) in investment advisory expense payable to affiliates | (174,127) |
Increase (decrease) in administration expense payable | (2,278) |
Increase (decrease) in director’s expense payable | (8,025) |
Increase (decrease) in other payables and accrued expenses | 85,173 |
Total adjustments | 43,025,496 |
Net cash provided by (used for) operating activities | 24,062,094 |
CASH FLOW FROM FINANCING ACTIVITIES: | |
Cash received from borrowings | 47,744,188 |
Cash payments to reduce borrowings | (59,694,784) |
Cash distributions paid | (16,084,098) |
Net cash used for financing activities | (28,034,694) |
Effect of exchange rates on cash | 75,556 |
Net increase (decrease) in cash | (3,897,044) |
Cash at beginning of year | 12,113,878 |
Cash at end of year | $ 8,216,834 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |
Cash paid during the period for interest expense from borrowings | $ 1,660,064 |
The following table provides a reconciliation of cash and foreign currencies reported within the statement of financial position that sum to the total of the same amounts shown above at November 30, 2020: | |
Cash | $ 8,150,790 |
Foreign currencies, at value | 66,044 |
Total cash and foreign currencies at end of year | $ 8,216,834 |
Year ended | ||||||||
11/30/20 | 11/30/19 | 11/30/18 | 11/30/17 | 11/30/16 | ||||
$ 26.92 | $ 23.92 | $ 28.44 | $ 23.08 | $ 24.12 | ||||
0.39 | 1.29 | 1.21 | 1.19 | 0.90 | ||||
(1.91) | 3.39 | (4.20) | 5.65 | (0.46) | ||||
(1.52) | 4.68 | (2.99) | 6.84 | 0.44 | ||||
(0.99) | (1.68) | (1.53) | (1.27) | (1.20) | ||||
— | — | — | (0.21) | (0.28) | ||||
(0.30) | — | — | — | — | ||||
(1.29) | (1.68) | (1.53) | (1.48) | (1.48) | ||||
$ 24.11 | $ 26.92 | $ 23.92 | $ 28.44 | $ 23.08 | ||||
$ 20.63 | $ 24.35 | $ 20.67 | $ 25.16 | $ 19.42 | ||||
(4.14%) | 21.40% | (10.10%) | 31.26% | 2.82% | ||||
(9.31%) | 27.07% | (12.18%) | 38.01% | 5.60% | ||||
$300,626 | $335,674 | $ 298,271 | $354,551 | $287,710 | ||||
2.37% | 2.50% | 2.61% | 2.44% | 2.56% | ||||
2.37% | 2.50% | 2.61% | 2.50% | 2.56% | ||||
1.82% | 1.75% | 1.76% | 1.72% | 1.83% | ||||
1.71% | 4.99% | 4.67% | 4.48% | 3.73% | ||||
1.71% | 4.99% | 4.67% | 4.42% | 3.73% | ||||
62% | 99% | 99% | 71% | 65% | ||||
$132,614 | $142,072 | $ 138,284 | $155,610 | $121,736 | ||||
327% | 336% | 316% | 328% | 336% |
Macquarie Global Infrastructure Total Return Fund Inc. | November 30, 2020 |
Purchases | $249,584,478 |
Sales | 268,922,613 |
Cost of investments | $438,044,018 |
Aggregate unrealized appreciation of investments | $ 30,525,145 |
Aggregate unrealized depreciation of investments | (43,998,206) |
Net unrealized depreciation of investments | $ (13,473,061) |
Level 1 | Level 2 | Total | |||||
Securities | |||||||
Assets: | |||||||
Common Stock | $417,926,415 | $36,751 | $417,963,166 | ||||
Master Limited Partnerships | 6,607,791 | — | 6,607,791 | ||||
Total Value of Securities | $424,534,206 | $36,751 | $424,570,957 |
Year ended | |||
11/30/20 | 11/30/19 | ||
Ordinary income | $ 5,422,568 | $13,647,372 | |
Long-term capital gains | 6,949,734 | 7,299,360 | |
Return of capital | 3,711,796 | — | |
Total | $16,084,098 | $20,946,732 |
Shares of beneficial interest | $314,099,535 |
Unrealized depreciation of investments | (13,473,061) |
Net assets | $300,626,474 |
Paid-in capital | $(3,805) |
Total distributable earnings (loss) | 3,805 |
Year ended | |||
11/30/20 | 11/30/19 | ||
Shares: | |||
Common Shares Outstanding - beginning of year | 12,468,293 | 12,468,293 | |
Common Shares Outstanding - end of year | 12,468,293 | 12,468,293 |
Long
Derivative Volume |
Short
Derivative Volume | ||||
Foreign currency exchange contracts (average cost) | $767,520 | $441,659 |
(A) Long-Term Capital Gain Distributions (Tax Basis) | 43.21% |
(B) Ordinary Income Distributions (Tax Basis) | 33.71% |
(C) Return of Capital (Tax Basis) | 23.08% |
Total Distributions (Tax Basis) | 100.00% |
(D) Qualifying Dividends1 | 68.81% |
Total
Cumulative Distributions for the year ended November 30, 2020 | |||||
Net
Investment Income |
Net
Realized Short- Term Capital Gains |
Net
Realized Long- Term Capital Gains |
Return
Of Capital |
Total
Per Common Share | |
$0.3938 | $0.0008 | $0.3502 | $0.5452 | $1.2900 |
Percentage
Breakdown of the Total Cumulative Distributions for the year ended November 30, 2020 | |||||
Net
Investment Income |
Net
Realized Short- Term Capital Gains |
Net
Realized Long- Term Capital Gains |
Return
of Capital |
Total
Per Common Share | |
30.53% | 0.06% | 27.15% | 42.26% | 100.00% |
Name,
Birth Year and Address1 of Director |
Position(s)
Held with the Fund |
Term
of Office and Length of Time Served2 |
Principal
Occupation(s) During Past Five Years |
Number
of DMC-Affiliated Advised Funds Overseen |
Other
Public Company Directorships |
Biographical Information of the Non-Interested Directors of the Fund | |||||
Gordon
A. Baird* Birth Year: 1968 |
Class I Director | Since July 2005 | Mr. Baird is the President and Chief Executive Officer of Nexos Technologies Inc. from 2019 to present. Mr. Baird is also the founder and Managing Partner of G. A. Baird Partners & Co from 2015 to present. Mr. Baird was the Chief Executive Officer of Independence Bancshares, Inc. from 2013 to 2015 and an Operating Advisor to Thomas H. Lee Partners L.P. in 2011 and 2012. From 2003 to 2011, Mr. Baird was Chief Executive Officer of Paramax Capital Partners LLC. Prior to 2003, Mr. Baird was a Director at Citigroup Global Markets, Inc., an investment analyst at State Street Bank and Trust Company and real estate analyst at John Hancock Real Estate Finance Inc. | 1 | None |
Name,
Birth Year and Address1 of Director |
Position(s)
Held with the Fund |
Term
of Office and Length of Time Served2 |
Principal
Occupation(s) During Past Five Years |
Number
of DMC-Affiliated Advised Funds Overseen |
Other
Public Company Directorships |
Thomas
W. Hunersen* Birth Year: 1958 |
Class II Director | Since July 2005 | Mr. Hunersen is the Principal of CKW Ventures LLC (since 2013). Prior to 2013, Executive Vice President/Global Head of Energy & Utilities, National Australia Bank Limited, New York, NY; Group Executive, Corporate & Institutional Recovery, Irish Bank Resolution Corporation, Dublin, Ireland; Group Executive, Bank of Ireland, Greenwich, CT;Chief Executive Officer, Slingshot GT Incorporated, Boston, MA; Assistant Vice President, Mellon Bank Corporation, Pittsburgh, PA. | 1 | None |
Chris
LaVictorie Mahai* Birth Year: 1955 |
Class III Director | Since July 2005 | Ms. Mahai has been President of Aveus, a division of Medecision, Inc. since May 2018. She was Founder, Owner and Managing Partner of Aveus LLC from 1999 to May 2018. | 1 | None |
Name,
Birth Year and Address1 of Director |
Position(s)
Held with the Fund |
Term
of Office and Length of Time Served2 |
Principal
Occupation(s) During Past Five Years |
Number
of DMC-Affiliated Advised Funds Overseen |
Other
Public Company Directorships |
Biographical Information of the Interested Directors of the Fund | |||||
John
C. Leonard Birth Year: 1960 |
Class III Director | Since February 2020 | Mr. Leonard has been Executive Director and Global Head of Equities of Macquarie Asset Management since March 2017. Previously, he was Head of Equities and Group Managing Director of UBS Asset Management from 2008 to 2016. | 1 | None |
Name,
Birth Year and Address of Officer |
Position(s)
Held with Fund(s) |
Term
of Office and Length of Time Served3 |
Principal Occupation(s) During the Past Five Years | ||
Biographical Information of the Executive Officers of the Fund | |||||
John
C. Leonard Birth Year: 1960 125 West 55th Street New York, NY 10019 |
Chief
Executive Officer and President |
Since February 2020 | Mr. Leonard has been Executive Director and Global Head of Equities of Macquarie Asset Management since March 2017. Previously, he was Head of Equities and Group Managing Director of UBS Asset Management from 2008 to 2016. | ||
William
Fink Birth Year: 1968 125 West 55th Street New York, NY 10019 |
Chief Compliance Officer | Since September 2014 | Mr. Fink is a Senior Manager for Macquarie Bank Limited (September 2014 – present); previously, he was the Chief Compliance Officer for EACM Advisors LLC, a subsidiary of the Bank of New York Mellon (January 2011 – September 2014) and was President and Chief Compliance Officer of IMS Financial (June 2004 – December 2010). |
Name,
Birth Year and Address of Officer |
Position(s)
Held with Fund(s) |
Term
of Office and Length of Time Served3 |
Principal Occupation(s) During the Past Five Years | ||
David
F. Connor, Esq. Birth Year: 1963 610 Market Street Philadelphia, PA 19106-2354 |
Chief
Legal Officer and Secretary |
Since March 2019 | Mr. Connor is general counsel for Macquarie Investment Management responsible for overseeing the firm’s legal department in the Americas (May 2015 – present); previously, he has served in various capacities at different times in the legal department at Macquarie Investment Management since 2000. | ||
Daniel
V. Geatens4 Birth Year: 1972 610 Market Street Philadelphia, PA 19106-2354 |
Chief
Financial Officer and Treasurer |
Since November 2017 | Mr. Geatens has served in various capacities at different times at Macquarie Investment Management since 1997. |
(b) | Not applicable. |
Item 2. | Code of Ethics. |
(a) | The registrant has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this items instructions. |
Item 3. | Audit Committee Financial Expert. |
The Board of Directors of the Registrant has determined that the Registrant has at least one audit committee financial expert serving on its audit committee. The Board of Directors has determined that each of the independent directors is an audit committee financial expert. Each of Gordon A. Baird, Chris LaVictoire Mahai and Thomas W. Hunersen is independent as defined in paragraph (a)(2) of Item 3 to Form N-CSR.
Item 4. | Principal Accountant Fees and Services. |
| Registrant may incorporate the following information by reference, if this information has been disclosed in the registrants definitive proxy statement or definitive information statement. The proxy statement or information statement must be filed no later than 120 days after the end of the fiscal year covered by the Annual Report. |
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrants annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $62,424 for 2020 and $62,424 for 2019. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrants financial statements and are not reported under paragraph (a) of this Item are $0 for 2020 and $0 for 2019. The percentage of these fees relating to services approved by the registrants Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: year-end audit procedures; group reporting and subsidiary statutory audits. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $11,250 for 2020 and $11,250 for 2019. The percentage of these fees relating to services approved by the registrants Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2020 and $0 for 2019. The percentage of these fees relating to services approved by the registrants Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. |
(e)(1) | Disclose the audit committees pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
All services to be performed by the Registrants principal auditors must be pre-approved by the Registrants audit committee, which may include the approval of certain services up to an amount determined by the audit committee. Any services that would exceed that amount would require additional approval of the audit committee.
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) | N/A |
(c) | N/A |
(d) | N/A |
Not applicable.
(g) | The aggregate non-audit fees billed by the registrants accountant for services rendered to the registrant, and rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $8,455,000 for 2020 and $4,687,000 for 2019. |
(h) | The registrants audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence. |
Item 5. | Audit Committee of Listed Registrants. |
(a) | The Registrant has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 and is comprised of the following members: Gordon A. Baird, Chris LaVictoire Mahai and Thomas W. Hunersen. |
(b) | Not applicable |
Item 6. | Investments. |
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Registrants (MGU) Proxy Voting Procedures
The registrant has formally delegated to its investment adviser, Delaware Management Company, a series of Macquarie Investment Management Business Trust (the Adviser) the responsibility for making all proxy voting decisions in relation to portfolio securities held by the registrant. If and when proxies need to be voted on behalf of the registrant, the Adviser will vote such proxies pursuant to its Proxy Voting Policies and Procedures (the Procedures). The Adviser has established a Proxy Voting Committee (the Committee), which is responsible for overseeing the Advisers proxy voting process for the registrant. One of the main responsibilities of the Committee is to review and approve the Procedures to ensure that the Procedures are designed to allow the Adviser to vote proxies in a manner consistent with the goal of voting in the best interests of the registrant.
In order to facilitate the actual process of voting proxies, the Adviser has contracted with Institutional Shareholder Services Inc. (ISS) to analyze proxy statements on behalf of the registrant and other Adviser clients and provide the Adviser with research recommendations on upcoming proxy votes in accordance with the Procedures. The Committee is responsible for overseeing ISSs services. If a proxy has been voted for the registrant, ISS will create a record of the vote. By no later than August 31 of each year, information (if any) regarding how the registrant voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the registrants website at http://delawarefunds.com/proxy; and (ii) on the Securities and Exchange Commissions website at http://www.sec.gov.
When determining whether to invest in a particular company, one of the factors the Adviser may consider is the quality and depth of the companys management. As a result, the Adviser believes that recommendations of management on any issue (particularly routine issues) should be given a fair amount of weight in determining how proxy issues should be voted. Thus, on many issues, the Advisers votes are cast in accordance with the recommendations of the companys management. However, the Adviser may vote against managements position when it runs counter to its specific Proxy Voting Guidelines (the Guidelines), and the Adviser will also vote against managements recommendation when it believes that such position is not in the best interests of the registrant.
As stated above, the Procedures also list specific Guidelines on how to vote proxies on behalf of the registrant. Some examples of the Guidelines are as follows: (i) generally vote for shareholder proposals asking that a majority or more of directors be independent; (ii) generally vote for management or shareholder proposals to reduce supermajority vote requirements, taking into account: ownership structure; quorum requirements; and vote requirements; (iii) votes on mergers and acquisitions should be considered on a case-by-case basis; (iv) generally vote re-incorporation proposals on a case-by-case basis; (v) votes with respect to equity-based compensation plans are generally determined on a case-by-case basis; (vi) generally vote for proposals requesting that a company report on its policies, initiatives, oversight mechanisms, and ethical standards related to social, economic, and environmental sustainability, unless company already provides similar reports through other means or the company has formally committed to the implementation of a reporting program based on Global Reporting Initiative guidelines or a similar standard; and (vii) generally vote for management proposals to institute open-market share repurchase plans in which all shareholders may participate on equal terms.
Because the registrant has delegated proxy voting to the Adviser, the registrant is not expected to encounter any conflict of interest issues regarding proxy voting and therefore does not have procedures regarding this matter. However, the Adviser does have a section in its Procedures that addresses the possibility of conflicts of interest. Most of the proxies which the Adviser receives on behalf of its clients are voted in accordance with the Procedures. Since the Procedures are pre-determined by the Committee, application of the Procedures by the Advisers portfolio management teams when voting proxies after reviewing the proxy and research provided by ISS should in most instances adequately address any potential conflicts of interest. If the Adviser becomes aware of a conflict of interest in an upcoming proxy vote, the proxy vote will generally be referred to the Committee or the Committees delegates for review. If the portfolio management team for such proxy intends to vote in accordance with ISSs recommendation pursuant to our Procedures, then no further action is needed to be taken by the Committee. If the Advisers portfolio management team is considering voting a proxy contrary to ISSs research recommendation under the Procedures, the Committee or its delegates will assess the proposed vote to determine if it is reasonable. The Committee or its delegates will also assess whether any business or other material relationships between the Adviser and a portfolio company (unrelated to the ownership of the portfolio companys securities) could have influenced an inconsistent vote on that companys proxy. If the Committee or its delegates determines that the proposed proxy vote is unreasonable or unduly influenced by a conflict, the portfolio management team will be required to vote the proxy in accordance with ISSs research recommendation or abstain from voting.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
(a)(1) | Portfolio Managers as of November 30, 2020: |
Name |
Title |
Length
of
|
Business Experience During the Past 5 Years | |||
Brad Frishberg, CFA | Portfolio Manager | Since November 2012 | Mr. Frishberg heads the firms infrastructure securities team and is the lead portfolio manager for Macquaries Global Listed Infrastructure strategies. Prior to joining the firm in 2009 in his current role, Frishberg was managing director and US equity portfolio manager at J.P. Morgan Asset Management, where, over a period of 13 years, he was responsible for managing portfolios and businesses in London, Tokyo, and New York. He earned a bachelors degree from Brown University and a masters degree from Trinity College.
|
(a)(2) | Other Accounts Managed as of November 30, 2020: |
Portfolio
|
Number of Registered
|
Advisory Fee Based on Performance
|
Name
|
Companies, Total Assets |
Number of Other Pooled Investment Vehicles, Total Assets |
Number of Other Accounts, Total Assets |
Number of Accounts and Total Assets
| ||||
Brad Frishberg
|
4, $892.0 million
|
9, $581.0 million
|
6, $510.0 million
|
0, $0
|
Material Conflicts of Interest. Delaware Management Company, a series of Macquarie Investment Management Business Trust (the Adviser) believes that Mr. Frishbergs simultaneous management of the Registrant and other accounts may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and other accounts. To address these conflicts, the Adviser has adopted a Trade Allocation/Aggregation Policy that is designed to ensure fair and equitable allocation of investment opportunities among accounts over time and to ensure compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager.
(a)(3) | Portfolio Manager Compensation as of November 30, 2020: |
The portfolios managers compensation consists of the following:
Base Salary The portfolio manager receives a fixed base salary. Salaries are determined by a comparison to industry data prepared by third parties to ensure that portfolio manager salaries are in line with salaries paid at peer investment advisory firms.
Bonus The portfolio manager is eligible to receive an annual cash bonus. The bonus pool is determined by the revenues associated with the products a portfolio manager manages. Macquarie Investment Management keeps a percentage of the revenues and the remaining percentage of revenues (minus appropriate expenses associated with relevant product and the investment management team) creates the bonus pool for the product. Various members of the team have the ability to earn a percentage of the bonus pool with the most senior contributor generally having the largest share. The pool is allotted based on subjective factors and objective factors. The primary objective factor is the 1-, 3-, and 5-year performance of institutional composites relative to the appropriate indices. Three- and five-year performance is weighted more heavily.
Individual allocations of the bonus pool are based on individual performance measurements, both objective and subjective, as determined by senior management.
Portfolio managers participate in retention programs, including the Macquarie Investment Management Notional Investment Plan and the Macquarie Group Employee Retained Equity Plan, for alignment of interest purposes.
Macquarie Investment Management Notional Investment Plan A portion of a portfolio managers retained profit share may be notionally exposed to the return of certain funds within Macquarie Investment Management Funds pursuant to the terms of the Macquarie Investment Management Notional Investment Plan. The retained amount will vest in equal tranches over a period ranging from four to five years after the date of investment (depending on the level of the employee).
Macquarie Group Employee Retained Equity Plan A portion of a portfolio managers retained profit share may be invested in the Macquarie Group Employee Retained Equity Plan (MEREP), which is used to deliver remuneration in the form of Macquarie equity. The main type of award currently being offered under the MEREP is units comprising a beneficial interest in a Macquarie share held in a trust for the employee, subject to the vesting and forfeiture provisions of the MEREP. Subject to vesting conditions, vesting and release of the shares occurs in a period ranging from four to five years after the date of investment (depending on the level of the employee).
Other Compensation - Portfolio managers may also participate in benefit plans and programs available generally to all similarly situated employees.
(a)(4) | Dollar Range of Securities Owned by Portfolio Managers as of November 30, 2020: |
Portfolio Manager | Dollar Range of Equity Securities in Registrant1 | |
Brad Frishberg
|
$100,001 - $500,000
|
1 | Beneficial Ownership is determined in accordance with Rule 16a-1(a)(2) under the Securities Exchange Act of 1934, as amended. |
(b) | Not applicable |
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrants board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. | Controls and Procedures. |
(a) | The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
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) |
Macquarie Global Infrastructure Total Return Fund Inc. |
By (Signature and Title)* |
/s/ John C. Leonard |
|||||
John C. Leonard |
||||||
Chief Executive Officer/Principal Executive Officer |
Date |
February 5, 2021 |
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/ John C. Leonard |
|||||
John C. Leonard |
||||||
Chief Executive Officer/Principal Executive Officer |
Date |
February 5, 2021 |
By (Signature and Title)* |
/s/ Daniel V. Geatens |
|||||
Daniel V. Geatens |
||||||
Treasurer, Chief Financial Officer/Principal Financial Officer |
Date |
February 5, 2021 |
* Print the name and title of each signing officer under his or her signature.
EX-99.CODE ETH
MACQUARIE GLOBAL INFRASTRUCTURE TOTAL RETURN FUND INC.
SENIOR OFFICER CODE OF CONDUCT
Macquarie Global Infrastructure Total Return Fund Inc. (the Fund) is committed to conducting its business activities in accordance with applicable laws, rules and regulations, reporting of unethical or illegal conduct, and the highest standards of ethics, and to provide full, fair, accurate and timely disclosure to its shareholders and regulators.
The Fund has adopted this Code of Conduct, applicable to the Principal Executive Officer and Principal Financial Officer (or persons performing similar functions) (each a Senior Officer and together the Senior Officers), to inform them of the standards of conduct that the Fund requires of them and the policies and procedures designed by the Fund to guide them in the performance of their duties.
As a Senior Officer, you must inform yourself of and comply with all applicable laws and regulations, and you must act in an honest, ethical manner. You have a duty to create an environment and culture for the Fund that encourages high ethical standards and a commitment to compliance.
This Code of Conduct is in addition to, and intended to supplement, the obligations to which you are subject under the applicable securities laws and regulations, including, but not limited to the Securities Act of 1933, as amended, the Securities Exchange Act of 1934 as amended, the Investment Company Act of 1940, and the Investment Advisers Act of 1940, and the rules, policies, procedures and codes of ethics adopted by the Fund pursuant to those laws (collectively Regulations).
As a Senior Officer, you may be subject to certain conflicts of interest inherent in the operation of the Fund due to your role as an officer of the Funds adviser or an affiliate of the Funds adviser or because you may currently or in the future serve as senior officer of other funds. Conflicts of interest may also arise when your personal business activities conflict with or appear to conflict with the Fund. You have a duty to avoid, or resolve in a manner consistent with obligations to the Fund, conflicts of interest between your personal activities and the Funds activities. You must conduct yourself in an honest and ethical manner, and as a Senior Officer, you must maintain a work environment that encourages the internal reporting and prompt addressing of compliance concerns.
STANDARD OF CONDUCT
As a Senior Officer, you have a duty to the Fund to act with integrity and in accordance with the highest standards of ethics. Integrity requires, among other things, being
honest and candid at all times and avoiding deceit. As a Senior Officer, you must act with integrity at all times but still maintain the confidentiality of information as required by applicable Regulations.
CONFLICTS OF INTEREST
A conflict of interest would include any situation in which your private interests constitute an actual or apparent conflict with the interests of the Fund or otherwise creates the appearance of impropriety.
As a Senior Officer, you are expected to be objective and unbiased when making decisions that affect the Fund, avoiding actual or perceived conflicts of interest whenever possible. In light of the inherent conflicts of interest that may arise because of your role with Macquarie Capital Investment Management LLC (the Adviser) or one of its affiliates, you must be careful to identify situations that may create actual or apparent conflicts of interest and handle them in an ethical manner an in accordance with all applicable Regulations.
You are also required to identify any actual or apparent conflicts of interest between your personal and business relationships to MCIMs CCO and the Funds CCO and to handle them in an ethical manner.
If you are in doubt as to the application or interpretation of this Code of Conduct to you as a Senior Officer, or the possibility about a situation that may pose a conflict of interest, you should fully disclose all relevant facts and circumstances to and obtain the approval of the Chief Compliance Officer of the Fund prior to taking any action.
Potential conflict of interest situations that must be approved by the Chief Compliance Officer include but are not limited to, the following:
| The receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which the Fund has current or prospective business dealings, unless such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; |
| Any ownership interest in, or any consulting or employment relationship with, any of the Funds service providers, other than the Adviser and its affiliates; or |
| A direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund to effect portfolio transactions or for selling or redeeming shares. |
FUND DISCLOSURES
It is the policy of the Fund to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable Regulations in all reports and documents that it files with, or submits to, the Securities and Exchange Commission, the New York Stock Exchange, Inc., any other regulatory agency, and in all other public communications made by the Fund. As a Senior Officer, you are required to adhere to this policy and to enforce the procedures adopted by the Fund to achieve compliance with this policy. In particular, you must:
| Familiarize yourself with the financial and business operations of the Fund; |
| Inform yourself of the disclosure requirements applicable to the Fund; and |
| Not knowingly misrepresent, or cause others to misrepresent, information about the Fund to others, including to the Directors, auditors, counsel, counsel to the independent directors, governmental regulators or self-regulatory organizations. |
COMPLIANCE WITH CODE OF CONDUCT
If you know of or suspect a violation of this Code of Conduct or the other Regulations, you must promptly report that information to the Chief Compliance Officer or in accordance with the whistle blower procedures adopted by the Fund.
YOU WILL NOT BE SUBJECT TO RETALIATION DUE TO A GOOD FAITH REPORT OF A SUSPECTED VIOLATION.
The Chief Compliance Officer of the Fund is responsible for investigating and enforcing this Code of Conduct and reporting any violations or suspected violations to the Board of Directors. The Board of Directors will make the final determination about whether a violation has occurred and will take appropriate disciplinary measures.
RECORDKEEPING
The Fund will maintain all records pursuant to this Code of Conduct in accordance with the record-keeping procedures in Appendix 3 of its Compliance Manual, including any
information or materials supplied to the Boards of Directors pursuant to this Code of Conduct that provided the basis for any amendments or relating to any violation of, or waiver from, this Code of Conduct, sanctions imposed for such violation, and a record of the approval or action taken by the Board of Directors.
AMENDMENTS
This Code of Conduct may not be amended except in writing and approved by a majority vote of the Board of Directors, including a majority of its Independent Directors.
CONFIDENTIALITY
All reports and records prepared and/or maintained pursuant to this Code of Conduct are confidential and shall be maintained and protected accordingly. Except as otherwise required by the Regulations, matters regarding this Code of Conduct shall not be disclosed, in whole or in part, to anyone other than officers, directors, and employees of the Fund, its Adviser, counsel to the independent or controlling entities of the Adviser (who have a need to know such matters in connection with the services they provide to the Fund).
ACKNOWLEDGMENT FORM
I have received and read the Macquarie Global Infrastructure Total Return Fund Inc. Senior Officer Code of Conduct, and I understand its contents and its application Regulations as defined in the code.
I understand that I have an obligation to report any suspected violations of the Code of Conduct on a timely basis to the Chief Compliance Officer or in accordance with the whistle blower policies adopted by the Fund.
|
Signature
|
|
Print Name
|
|
Date |
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, John C. Leonard, certify that:
1. | I have reviewed this report on Form N-CSR of Macquarie Global Infrastructure Total Return Fund Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: February 5, 2021 |
/s/ John C. Leonard |
|||||||||
John C. Leonard |
||||||||||
Chief Executive Officer/Principal Executive Officer |
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, Daniel V. Geatens, certify that:
1. | I have reviewed this report on Form N-CSR of Macquarie Global Infrastructure Total Return Fund Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3 (d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: February 5, 2021 |
/s/ Daniel V. Geatens | |||||
Daniel V. Geatens | ||||||
Treasurer, Chief Financial Officer/Principal Financial Officer |
Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the
Sarbanes-Oxley Act
I, John C. Leonard, Chief Executive Officer/Principal Executive Officer of Macquarie Global Infrastructure Total Return Fund Inc. (the Registrant), certify that:
1. | The Form N-CSR of the Registrant (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: |
February 5, 2021 |
/s/ John C. Leonard |
||||||||
John C. Leonard |
||||||||||
Chief Executive Officer/Principal Executive Officer |
I, Daniel V. Geatens, Treasurer, Chief Financial Officer/Principal Financial Officer of Macquarie Global Infrastructure Total Return Fund Inc. (the Registrant), certify that:
1. | The Form N-CSR of the Registrant (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: |
February 5, 2021 |
/s/ Daniel V. Geatens |
||||||||
Daniel V. Geatens |
||||||||||
Treasurer, Chief Financial Officer/Principal Financial Officer |
MACQUARIE GLOBAL INFRASTRUCTURE TOTAL RETURN FUND INC.
Statement Pursuant to Section 19(a) of the Investment Company Act of 1940
NEW YORK, August 28, 2020 - Macquarie Global Infrastructure Total Return Fund Inc. (NYSE: MGU) (the Fund), a closed-end fund, paid a quarterly distribution on its common stock of $0.0750 per share to shareholders of record at the close of business on August 21, 2020.
The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.
Current Distribution from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.0295 | 39.33% | ||||||
Net Realized Short-Term Capital Gain |
0.0000 | 0.00% | ||||||
Net Realized Long-Term Capital Gain |
0.0000 | 0.00% | ||||||
Return of Capital or other Capital Source |
0.0455 | 60.67% | ||||||
Total (per common share) |
0.0750 | 100.00% | ||||||
Fiscal Year-to-Date Cumulative Distributions from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.3544 | 33.28% | ||||||
Net Realized Short-Term Capital Gain |
0.0008 | 0.08% | ||||||
Net Realized Long-Term Capital Gain |
0.2922 | 27.44% | ||||||
Return of Capital or other Capital Source |
0.4176 | 39.20% | ||||||
Total (per common share) |
1.0650 | 100.00% |
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and not for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. Subject to the foregoing, the Fund estimates (as of the date
hereof) that it has distributed more than its income and net realized capital gains for the fiscal year ending November 30, 2020; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Presented below are return figures, based on the change in the Funds Net Asset Value per share (NAV), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last business day of the month prior to distribution record date.
Fund Performance & Distribution Information
Fiscal Year to Date (12/01/2019 through 7/31/2020) |
||||
Annualized Distribution Rate as a Percentage of NAV^ |
4.11 | % | ||
Cumulative Distribution Rate on NAV^^ |
4.86 | % | ||
Total Return on NAV* |
-14.34 | % | ||
Average Annual Total Return on NAV for the 5 Year Period Ending 7/31/2020** | 2.65 | % | ||
^ Based on the Funds NAV as of July 31,2020.
^^ Cumulative distribution rate is the cumulative amount of distributions paid during the Funds fiscal year ending November 30, 2020 based on the Funds NAV as of July 31, 2020.
*Cumulative total return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions for the period December 1, 2019 through July 31, 2020.
**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and is through the last business day of the month prior to the month of the current distribution record date.
The payment of dividend distributions in accordance with the distribution policy may result in a decrease in the Funds net assets. A decrease in the Funds net assets may cause an increase in the Funds annual operating expenses and a decrease in the Funds market price per share to the extent the market price correlates closely to the Funds net asset value per share. The distribution policy may also negatively affect the Funds investment activities to the extent that the Fund is required to hold larger cash positions than it typically would hold or to the extent that the Fund must liquidate securities that it would not have sold, for the purpose of paying the dividend distribution. The distribution policy may, under certain circumstances, cause the amounts of taxable distributions to exceed the amount minimally required to be distributed under the tax rules, such excess will be taxable as ordinary income to the extent loss carry forwards reduce the required amount of capital gains distributions in that year. The Board of Directors has the right to amend, suspend or terminate the distribution policy at any time. The amendment, suspension or termination of the distribution policy may affect the Funds market price per share. Investors should consult their tax advisor regarding federal, state, and local tax considerations that may be applicable in their particular circumstances.
- 2 -
While the NAV performance may be indicative of the Funds investment performance, it does not measure the value of a shareholders investment in the Fund. The value of a shareholders investment in the Fund is determined by the Funds market price, which is based on the supply and demand for the Funds shares in the open market. Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Managed Distribution Plan.
Furthermore, the Board of Directors reviews the amount of any potential distribution and the income, capital gain or capital available. The Board of Directors will continue to monitor the Funds distribution level, taking into consideration the Funds net asset value and the financial market environment. The Funds distribution policy is subject to modification by the Board of Directors at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
For further information, please contact:
Investor/Broker Inquiries Tel: 1-866-567-4771 E-mail: MGU-Questions@macquarie.com Web: www.macquarie.com/mgu |
Media Inquiries Daniela Palmieri 215 255-8878 Daniela.Palmieri@macquarie.com
Jessica Fitzgerald 215 255-1336 Jessica.Fitzgerald@macquarie.com |
The Fund is not intended to be a complete investment program. An investment in the Fund involves risks, and the Fund may or may not be able to achieve its investment objective for a variety of reasons. The following summarizes some of the Funds risks but does not purport to be a complete listing of all of the risks. Investors should carefully review the Funds Prospectus and consult their own advisers.
The Fund is also subject to risk because it is an actively managed portfolio. Industry Concentration and Infrastructure Industry Risk. The Fund will be concentrated in the infrastructure industry, and will be more susceptible to adverse economic or regulatory occurrences affecting that industry than a fund that is not concentrated in a specific industry. Non-U.S. Investment Risk. A majority of the Funds investments will be in non-U.S. issuers and a substantial portion of the trades executed for the Fund will take place on foreign exchanges. Investments in securities and instruments of non-U.S. issuers involve certain considerations and risks not ordinarily associated with investments in those of U.S. issuers. Emerging Markets Risk. In addition to non-US investment risk, investments in emerging markets may expose the Fund to heightened risks that may be more volatile than investments in developed markets. Use of Derivatives and Hedging. The Fund may use derivatives and employ a variety of hedging techniques. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large impact on the Funds performance. Certain of the investment techniques that the Fund may employ for hedging or to increase income or total return will expose the Fund to additional risks. Leverage Risk. The Fund expects to employ leverage as part of its investing strategy. The use of leverage will increase the volatility of the Fund and increase risk to investors. Any difficulty in maintaining the Funds leverage could cause a diversion of cash flow and/or require liquidation of some portion of the Funds portfolio. Restrictions imposed as a result of any leverage may directly or indirectly inhibit the Funds ability to take actions that otherwise may be taken in an unleveraged portfolio of similar assets.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.
- 3 -
MACQUARIE GLOBAL INFRASTRUCTURE TOTAL RETURN FUND INC.
Statement Pursuant to Section 19(a) of the Investment Company Act of 1940
NEW YORK, September 25, 2020 - Macquarie Global Infrastructure Total Return Fund Inc. (NYSE: MGU) (the Fund), a closed-end fund, paid a monthly distribution on its common stock of $0.0750 per share to shareholders of record at the close of business on September 18, 2020.
The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.
Current Distribution from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.0321 | 42.80% | ||||||
Net Realized Short-Term Capital Gain |
0.0000 | 0.00% | ||||||
Net Realized Long-Term Capital Gain |
0.0000 | 0.00% | ||||||
Return of Capital or other Capital Source |
0.0429 | 57.20% | ||||||
Total (per common share) |
0.0750 | 100.00% | ||||||
Fiscal Year-to-Date Cumulative Distributions from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.3865 | 33.90% | ||||||
Net Realized Short-Term Capital Gain |
0.0008 | 0.07% | ||||||
Net Realized Long-Term Capital Gain |
0.2922 | 25.63% | ||||||
Return of Capital or other Capital Source |
0.4605 | 40.40% | ||||||
Total (per common share) |
1.1400 | 100.00% |
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and not for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. Subject to the foregoing, the Fund estimates (as of the date
hereof) that it has distributed more than its income and net realized capital gains for the fiscal year ending November 30, 2020; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Presented below are return figures, based on the change in the Funds Net Asset Value per share (NAV), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last business day of the month prior to distribution record date.
Fund Performance & Distribution Information
Fiscal Year to Date (12/01/2019 through 8/31/2020) |
||||
Annualized Distribution Rate as a Percentage of NAV^ |
4.06 | % | ||
Cumulative Distribution Rate on NAV^^ |
5.14 | % | ||
Total Return on NAV* |
-12.85 | % | ||
Average Annual Total Return on NAV for the 5 Year Period Ending 8/31/2020** | 4.44 | % | ||
^ Based on the Funds NAV as of August 31,2020.
^^ Cumulative distribution rate is the cumulative amount of distributions paid during the Funds fiscal year ending November 30, 2020 based on the Funds NAV as of August 31, 2020.
*Cumulative total return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions for the period December 1, 2019 through August 31, 2020.
**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and is through the last business day of the month prior to the month of the current distribution record date.
The payment of dividend distributions in accordance with the distribution policy may result in a decrease in the Funds net assets. A decrease in the Funds net assets may cause an increase in the Funds annual operating expenses and a decrease in the Funds market price per share to the extent the market price correlates closely to the Funds net asset value per share. The distribution policy may also negatively affect the Funds investment activities to the extent that the Fund is required to hold larger cash positions than it typically would hold or to the extent that the Fund must liquidate securities that it would not have sold, for the purpose of paying the dividend distribution. The distribution policy may, under certain circumstances, cause the amounts of taxable distributions to exceed the amount minimally required to be distributed under the tax rules, such excess will be taxable as ordinary income to the extent loss carry forwards reduce the required amount of capital gains distributions in that year. The Board of Directors has the right to amend, suspend or terminate the distribution policy at any time. The amendment, suspension or termination of the distribution policy may affect the Funds market price per share. Investors should consult their tax advisor regarding federal, state, and local tax considerations that may be applicable in their particular circumstances.
- 2 -
While the NAV performance may be indicative of the Funds investment performance, it does not measure the value of a shareholders investment in the Fund. The value of a shareholders investment in the Fund is determined by the Funds market price, which is based on the supply and demand for the Funds shares in the open market. Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Managed Distribution Plan.
Furthermore, the Board of Directors reviews the amount of any potential distribution and the income, capital gain or capital available. The Board of Directors will continue to monitor the Funds distribution level, taking into consideration the Funds net asset value and the financial market environment. The Funds distribution policy is subject to modification by the Board of Directors at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
For further information, please contact:
Investor/Broker Inquiries |
Media Inquiries | |
Tel: 866-567-4771 |
Daniela Palmieri | |
E-mail: MGU-Questions@macquarie.com |
215 255-8878 | |
Web: www.macquarie.com/mgu |
Daniela.Palmieri@macquarie.com | |
Jessica Fitzgerald | ||
215 255-1336 | ||
Jessica.Fitzgerald@macquarie.com |
The Fund is not intended to be a complete investment program. An investment in the Fund involves risks, and the Fund may or may not be able to achieve its investment objective for a variety of reasons. The following summarizes some of the Funds risks but does not purport to be a complete listing of all of the risks. Investors should carefully review the Funds Prospectus and consult their own advisers.
The Fund is also subject to risk because it is an actively managed portfolio. Industry Concentration and Infrastructure Industry Risk. The Fund will be concentrated in the infrastructure industry, and will be more susceptible to adverse economic or regulatory occurrences affecting that industry than a fund that is not concentrated in a specific industry. Non-U.S. Investment Risk. A majority of the Funds investments will be in non-U.S. issuers and a substantial portion of the trades executed for the Fund will take place on foreign exchanges. Investments in securities and instruments of non-U.S. issuers involve certain considerations and risks not ordinarily associated with investments in those of U.S. issuers. Emerging Markets Risk. In addition to non-US investment risk, investments in emerging markets may expose the Fund to heightened risks that may be more volatile than investments in developed markets. Use of Derivatives and Hedging. The Fund may use derivatives and employ a variety of hedging techniques. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large impact on the Funds performance. Certain of the investment techniques that the Fund may employ for hedging or to increase income or total return will expose the Fund to additional risks. Leverage Risk. The Fund expects to employ leverage as part of its investing strategy. The use of leverage will increase the volatility of the Fund and increase risk to investors. Any difficulty in maintaining the Funds leverage could cause a diversion of cash flow and/or require liquidation of some portion of the Funds portfolio. Restrictions imposed as a result of any leverage may directly or indirectly inhibit the Funds ability to take actions that otherwise may be taken in an unleveraged portfolio of similar assets.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.
- 3 -
MACQUARIE GLOBAL INFRASTRUCTURE TOTAL RETURN FUND INC.
Statement Pursuant to Section 19(a) of the Investment Company Act of 1940
NEW YORK, October 30, 2020 - Macquarie Global Infrastructure Total Return Fund Inc. (NYSE: MGU) (the Fund), a closed-end fund, paid a monthly distribution on its common stock of $0.0750 per share to shareholders of record at the close of business on October 23, 2020.
The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.
Current Distribution from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.0000 | 0.00% | ||||||
Net Realized Short-Term Capital Gain |
0.0000 | 0.00% | ||||||
Net Realized Long-Term Capital Gain |
0.0464 | 61.87% | ||||||
Return of Capital or other Capital Source |
0.0286 | 38.13% | ||||||
Total (per common share) |
0.0750 | 100.00% | ||||||
Fiscal Year-to-Date Cumulative Distributions from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.3865 | 31.81% | ||||||
Net Realized Short-Term Capital Gain |
0.0008 | 0.07% | ||||||
Net Realized Long-Term Capital Gain |
0.3386 | 27.87% | ||||||
Return of Capital or other Capital Source |
0.4891 | 40.25% | ||||||
Total (per common share) |
1.2150 | 100.00% |
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and not for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. Subject to the foregoing, the Fund estimates (as of the date
hereof) that it has distributed more than its income and net realized capital gains for the fiscal year ending November 30, 2020; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Presented below are return figures, based on the change in the Funds Net Asset Value per share (NAV), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last business day of the month prior to distribution record date.
Fund Performance & Distribution Information
Fiscal Year to Date (12/01/2019 through 9/30/2020) |
||||
Annualized Distribution Rate as a Percentage of NAV^ |
4.27 | % | ||
Cumulative Distribution Rate on NAV^^ |
5.76 | % | ||
Total Return on NAV* |
-16.82 | % | ||
Average Annual Total Return on NAV for the 5 Year Period Ending 9/30/2020** | 4.69 | % | ||
^ Based on the Funds NAV as of September 30,2020.
^^ Cumulative distribution rate is the cumulative amount of distributions paid during the Funds fiscal year ending November 30, 2020 based on the Funds NAV as of September 30, 2020.
*Cumulative total return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions for the period December 1, 2019 through September 30, 2020.
**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and is through the last business day of the month prior to the month of the current distribution record date.
The payment of dividend distributions in accordance with the distribution policy may result in a decrease in the Funds net assets. A decrease in the Funds net assets may cause an increase in the Funds annual operating expenses and a decrease in the Funds market price per share to the extent the market price correlates closely to the Funds net asset value per share. The distribution policy may also negatively affect the Funds investment activities to the extent that the Fund is required to hold larger cash positions than it typically would hold or to the extent that the Fund must liquidate securities that it would not have sold, for the purpose of paying the dividend distribution. The distribution policy may, under certain circumstances, cause the amounts of taxable distributions to exceed the amount minimally required to be distributed under the tax rules, such excess will be taxable as ordinary income to the extent loss carry forwards reduce the required amount of capital gains distributions in that year. The Board of Directors has the right to amend, suspend or terminate the distribution policy at any time. The amendment, suspension or termination of the distribution policy may affect the Funds market price per share. Investors should consult their tax advisor regarding federal, state, and local tax considerations that may be applicable in their particular circumstances.
- 2 -
While the NAV performance may be indicative of the Funds investment performance, it does not measure the value of a shareholders investment in the Fund. The value of a shareholders investment in the Fund is determined by the Funds market price, which is based on the supply and demand for the Funds shares in the open market. Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Managed Distribution Plan.
Furthermore, the Board of Directors reviews the amount of any potential distribution and the income, capital gain or capital available. The Board of Directors will continue to monitor the Funds distribution level, taking into consideration the Funds net asset value and the financial market environment. The Funds distribution policy is subject to modification by the Board of Directors at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
For further information, please contact:
Investor/Broker Inquiries Tel: 866 567-4771 E-mail: MGU-Questions@macquarie.com Web: www.macquarie.com/mgu |
Media Inquiries Daniela Palmieri 215 255-8878 Daniela.Palmieri@macquarie.com
Jessica Fitzgerald 215 255-1336 Jessica.Fitzgerald@macquarie.com |
The Fund is not intended to be a complete investment program. An investment in the Fund involves risks, and the Fund may or may not be able to achieve its investment objective for a variety of reasons. The following summarizes some of the Funds risks but does not purport to be a complete listing of all of the risks. Investors should carefully review the Funds Prospectus and consult their own advisers.
The Fund is also subject to risk because it is an actively managed portfolio. Industry Concentration and Infrastructure Industry Risk. The Fund will be concentrated in the infrastructure industry, and will be more susceptible to adverse economic or regulatory occurrences affecting that industry than a fund that is not concentrated in a specific industry. Non-U.S. Investment Risk. A majority of the Funds investments will be in non-U.S. issuers and a substantial portion of the trades executed for the Fund will take place on foreign exchanges. Investments in securities and instruments of non-U.S. issuers involve certain considerations and risks not ordinarily associated with investments in those of U.S. issuers. Emerging Markets Risk. In addition to non-US investment risk, investments in emerging markets may expose the Fund to heightened risks that may be more volatile than investments in developed markets. Use of Derivatives and Hedging. The Fund may use derivatives and employ a variety of hedging techniques. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large impact on the Funds performance. Certain of the investment techniques that the Fund may employ for hedging or to increase income or total return will expose the Fund to additional risks. Leverage Risk. The Fund expects to employ leverage as part of its investing strategy. The use of leverage will increase the volatility of the Fund and increase risk to investors. Any difficulty in maintaining the Funds leverage could cause a diversion of cash flow and/or require liquidation of some portion of the Funds portfolio. Restrictions imposed as a result of any leverage may directly or indirectly inhibit the Funds ability to take actions that otherwise may be taken in an unleveraged portfolio of similar assets.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.
- 3 -
MACQUARIE GLOBAL INFRASTRUCTURE TOTAL RETURN FUND INC.
Statement Pursuant to Section 19(a) of the Investment Company Act of 1940
NEW YORK, November 27, 2020 - Macquarie Global Infrastructure Total Return Fund Inc. (NYSE: MGU) (the Fund), a closed-end fund, paid a monthly distribution on its common stock of $0.0750 per share to shareholders of record at the close of business on November 20, 2020.
The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.
Current Distribution from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.0073 | 9.73% | ||||||
Net Realized Short-Term Capital Gain |
0.0000 | 0.00% | ||||||
Net Realized Long-Term Capital Gain |
0.0116 | 15.47% | ||||||
Return of Capital or other Capital Source |
0.0561 | 74.80% | ||||||
Total (per common share) |
0.0750 | 100.00% | ||||||
Fiscal Year-to-Date Cumulative Distributions from: |
||||||||
Per Share ($) | % | |||||||
Net Investment Income |
0.3938 | 30.53% | ||||||
Net Realized Short-Term Capital Gain |
0.0008 | 0.06% | ||||||
Net Realized Long-Term Capital Gain |
0.3502 | 27.15% | ||||||
Return of Capital or other Capital Source |
0.5452 | 42.26% | ||||||
Total (per common share) |
1.2900 | 100.00% |
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and not for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. Subject to the foregoing, the Fund estimates (as of the date
hereof) that it has distributed more than its income and net realized capital gains for the fiscal year ending November 30, 2020; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Presented below are return figures, based on the change in the Funds Net Asset Value per share (NAV), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last business day of the month prior to distribution record date.
Fund Performance & Distribution Information
Fiscal Year to Date (12/01/2019 through 10/31/2020) |
||||
Annualized Distribution Rate as a Percentage of NAV^ |
4.32% | |||
Cumulative Distribution Rate on NAV^^ |
6.19% | |||
Total Return on NAV* |
-17.40% | |||
Average Annual Total Return on NAV for the 5 Year Period Ending 10/31/2020** | 2.98% | |||
^ Based on the Funds NAV as of October 31, 2020.
^^ Cumulative distribution rate is the cumulative amount of distributions paid during the Funds fiscal year ending November 30, 2020 based on the Funds NAV as of October 31, 2020.
*Cumulative total return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions for the period December 1, 2019 through October 31, 2020.
**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and is through the last business day of the month prior to the month of the current distribution record date.
The payment of dividend distributions in accordance with the distribution policy may result in a decrease in the Funds net assets. A decrease in the Funds net assets may cause an increase in the Funds annual operating expenses and a decrease in the Funds market price per share to the extent the market price correlates closely to the Funds net asset value per share. The distribution policy may also negatively affect the Funds investment activities to the extent that the Fund is required to hold larger cash positions than it typically would hold or to the extent that the Fund must liquidate securities that it would not have sold, for the purpose of paying the dividend distribution. The distribution policy may, under certain circumstances, cause the amounts of taxable distributions to exceed the amount minimally required to be distributed under the tax rules, such excess will be taxable as ordinary income to the extent loss carry forwards reduce the required amount of capital gains distributions in that year. The Board of Directors has the right to amend, suspend or terminate the distribution policy at any time. The amendment, suspension or termination of the distribution policy may affect the Funds market price per share. Investors should consult their tax advisor regarding federal, state, and local tax considerations that may be applicable in their particular circumstances.
- 2 -
While the NAV performance may be indicative of the Funds investment performance, it does not measure the value of a shareholders investment in the Fund. The value of a shareholders investment in the Fund is determined by the Funds market price, which is based on the supply and demand for the Funds shares in the open market. Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds Managed Distribution Plan.
Furthermore, the Board of Directors reviews the amount of any potential distribution and the income, capital gain or capital available. The Board of Directors will continue to monitor the Funds distribution level, taking into consideration the Funds net asset value and the financial market environment. The Funds distribution policy is subject to modification by the Board of Directors at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
For further information, please contact:
Investor/Broker Inquiries Tel: 866 567-4771 E-mail: MGU-Questions@macquarie.com Web: www.macquarie.com/mgu |
Media Inquiries Daniela Palmieri 215 255-8878 Daniela.Palmieri@macquarie.com
Jessica Fitzgerald 215 255-1336 Jessica.Fitzgerald@macquarie.com |
The Fund is not intended to be a complete investment program. An investment in the Fund involves risks, and the Fund may or may not be able to achieve its investment objective for a variety of reasons. The following summarizes some of the Funds risks but does not purport to be a complete listing of all of the risks. Investors should carefully review the Funds Prospectus and consult their own advisers.
The Fund is also subject to risk because it is an actively managed portfolio. Industry Concentration and Infrastructure Industry Risk. The Fund will be concentrated in the infrastructure industry, and will be more susceptible to adverse economic or regulatory occurrences affecting that industry than a fund that is not concentrated in a specific industry. Non-U.S. Investment Risk. A majority of the Funds investments will be in non-U.S. issuers and a substantial portion of the trades executed for the Fund will take place on foreign exchanges. Investments in securities and instruments of non-U.S. issuers involve certain considerations and risks not ordinarily associated with investments in those of U.S. issuers. Emerging Markets Risk. In addition to non-US investment risk, investments in emerging markets may expose the Fund to heightened risks that may be more volatile than investments in developed markets. Use of Derivatives and Hedging. The Fund may use derivatives and employ a variety of hedging techniques. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large impact on the Funds performance. Certain of the investment techniques that the Fund may employ for hedging or to increase income or total return will expose the Fund to additional risks. Leverage Risk. The Fund expects to employ leverage as part of its investing strategy. The use of leverage will increase the volatility of the Fund and increase risk to investors. Any difficulty in maintaining the Funds leverage could cause a diversion of cash flow and/or require liquidation of some portion of the Funds portfolio. Restrictions imposed as a result of any leverage may directly or indirectly inhibit the Funds ability to take actions that otherwise may be taken in an unleveraged portfolio of similar assets.
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.
- 3 -
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