N-Q 1 d648950dnq.htm DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC. Duff & Phelps Global Utility Income Fund Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number            811-22533                    

                         Duff & Phelps Global Utility Income Fund Inc.                        

(Exact name of registrant as specified in charter)

200 South Wacker Drive, Suite 500

                                                       Chicago, Illinois 60606                                                 

(Address of principal executive offices) (Zip code)

 

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

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

Date of fiscal year end:   October 31     

Date of reporting period:   January 31, 2019

 

Item 1. Schedule of Investments.

See the Statement of Net Assets below.

 

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS

JANUARY 31, 2019

(Unaudited)

 

Shares     

Description

    Value  
 

COMMON STOCKS & MLP INTERESTS—141.1%

   
   ∎ AIRPORT SERVICES—2.0%   
  2,630,000      Sydney Airport (Australia)      $12,541,015  
     

 

 

  
   ∎ CONSTRUCTION & ENGINEERING—4.7%   
  3,100,000      Atlas Arteria Ltd. (Australia)      14,984,989  
  155,000      Vinci SA (France)      13,639,475  
     

 

 

  
        28,624,464  
     

 

 

  
   ∎ ELECTRIC, GAS AND WATER—55.0%   
  363,000      American Electric Power Co., Inc.      28,720,560  
  13,655,374      AusNet Services (Australia)      16,377,992  
  763,000      CenterPoint Energy, Inc.      23,591,960  
  420,000      CMS Energy Corp.      21,898,800  
  218,500      DTE Energy Co.      25,728,375  
  839,000      Emera, Inc. (Canada)      29,372,503  
  3,530,000      Enel SpA (Italy)      21,276,889  
  492,236      Evergy, Inc.      28,214,968  
  411,000      Fortis, Inc. (Canada)      14,657,681  
  3,690,000      Iberdrola SA (Spain)      30,409,651  
  1,683,083      National Grid plc (United Kingdom)      18,216,493  
  189,000      NextEra Energy, Inc.      33,827,220  
  299,000      Orsted A/S (Denmark)      21,499,908  
  434,000      Public Service Enterprise Group, Inc.      23,674,700  
     

 

 

  
        337,467,700  
     

 

 

  
   ∎ HIGHWAYS & RAILTRACKS—2.7%   
  1,880,701      Transurban Group (Australia)      16,637,323  
     

 

 

  
   ∎ OIL & GAS STORAGE, TRANSPORTATION AND PRODUCTION—54.7%   
  725,944      Antero Midstream GP LP      9,742,168  
  585,000      BP Midstream Partners LP      9,190,350  
  404,015      Cheniere Energy Partners LP      16,419,170  
  353,184      DCP Midstream LP      11,842,260  
  600,000      Enbridge, Inc. (Canada)      21,923,209  
  1,824,585      Energy Transfer LP      26,839,645  
  894,000      Enterprise Products Partners LP      24,736,980  
  452,000      GasLog Partners LP (Marshall Islands)      10,255,880  
  1,096,854      Kinder Morgan, Inc.      19,853,057  
  601,575      MPLX LP      21,127,314  
  357,000      Pembina Pipeline Corp. (Canada)      12,720,986  
  236,000      Phillips 66 Partners LP      11,568,720  
  824,500      Plains All American Pipeline LP      18,773,865  
  463,000      Sunoco LP      14,181,690  
  686,596      Tallgrass Energy LP      16,361,583  
  549,528      Targa Resources Corp.      23,635,199  
  573,000      TransCanada Corp. (Canada)      24,368,690  
  272,000      Western Gas Partners LP      13,153,920  
  1,081,747      Williams Cos., Inc. (The)      29,131,447  
     

 

 

  
        335,826,133  
     

 

 

  
   ∎ RAILROADS—3.6%   
  267,000      Canadian National Railway Co. (Canada)      22,281,327  
     

 

 

  
   ∎ TELECOMMUNICATIONS—18.4%   
  599,000      BCE, Inc. (Canada)      26,056,500  
  225,000      Crown Castle International Corp.      26,338,500  
  1,377,000      Deutsche Telekom AG Registered Shares (Germany)      22,365,001  
  1,288,000      Orange SA (France)      20,005,448  
  6,365,000      Spark New Zealand Ltd. (New Zealand)      17,839,915  
     

 

 

  
        112,605,364  
     

 

 

  
   Total Common Stocks & MLP Interests (Cost $853,370,969)      865,983,326  
     

 

 

  
 

SHORT-TERM INVESTMENT—0.7%

   
   ∎ MONEY MARKET MUTUAL FUND—0.7%   
  4,159,379      BlackRock Liquidity Funds FedFund Portfolio Institutional Shares
(seven-day effective yield 2.292%)(1)		      4,159,379  
     

 

 

  
   Total Short-term Investments (Cost $4,159,379)      4,159,379  
     

 

 

  

 

The accompanying notes are an integral part of this Statement of Net Assets.

 

1

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

JANUARY 31, 2019

(Unaudited)

 

                   

Description

    Value  
  

TOTAL INVESTMENTS—141.8%

(Cost $857,530,348)

      $870,142,705 (2)  
     

 

 

  
                   

Secured borrowings—(26.1)%

      (160,000,000 ) 
  

Mandatory Redeemable Preferred Shares at liquidation value—(16.3)%

      (100,000,000 ) 
  

Other assets less other liabilities—0.6%

      3,577,041  
     

 

 

  
  

NET ASSETS APPLICABLE TO COMMON STOCK—100.0%

      $613,719,746  
     

 

 

  

 

(1)  

Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

(2)

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

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

The accompanying notes are an integral part of this Statement of Net Assets.

 

2

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

JANUARY 31, 2019

(Unaudited)

 

Sector Allocation *

Electric, Gas and Water

      39 % 

Oil & Gas Storage, Transportation and Production

      39  

Telecommunications

      13  

Construction & Engineering

      3  

Railroads

      3  

Highways & Railtracks

      2  

Airport Services

      1  

Total

      100 % 

 

Country Weightings *

United States

      56 % 

Canada

      17  

Australia

      7  

France

      4  

Spain

      4  

Germany

      3  

Denmark

      2  

Italy

      2  

United Kingdom

      2  

New Zealand

      2  

Marshall Islands

      1  

Total

      100 % 

 

Currency Exposure *

United States Dollar

      60 % 

Canadian Dollar

      14  

Euro

      12  

Australian Dollar

      7  

Danish Krona

      3  

British Pound

      2  

New Zealand Dollar

      2  

Total

      100 % 

 

*

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

 

The accompanying notes are an integral part of this Statement of Net Assets.

 

3

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

JANUARY 31, 2019

(Unaudited)

 

Note 1. Investment Valuation

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

Level 1—quoted prices in active markets for identical securities

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment spreads, credit risks, etc.)

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. For more information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements contained in its annual report. The following is a summary of the inputs used to value each of the Fund’s investments at January 31, 2019:

 

      Level 1  

Common stocks & MLP interests

      $865,983,326  

Money market mutual fund

      4,159,379  
  

 

 

  

Total investments

     $870,142,705  
  

 

 

  

There were no Level 2 or Level 3 priced securities held and there were no transfers into or out of Level 3.

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

Item 2. Controls and Procedures.

 

  (a)

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

 

  (b)

There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

 

Exhibit 99.CERT      Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002.

 

SIGNATURES

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

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

 

By (Signature and Title)*     /s/ Nathan I. Partain                                                                           

 

      Nathan I. Partain,

      President and Chief Executive Officer

 

      (Principal Executive Officer)

Date     March 15, 2019                                                                                                                                                

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

 

By (Signature and Title)*      /s/ Nathan I. Partain                                                                            

 

         Nathan I. Partain,

         President and Chief Executive Officer

 

         (Principal Executive Officer)

Date     March 15, 2019                                                                                                                                                

 

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

 

         Alan M. Meder,

         Treasurer and Assistant Secretary

 

         (Principal Financial Officer)

Date     March 15, 2019