Edgar Filing: Duff & Phelps Global Utility Income Fund Inc.

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)

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)

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

Date of fiscal year end: October 31

Date of reporting period: January 31, 2017

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, 2017

(Unaudited)


Shares		Description	Value
	COMMON STOCKS & MLP INTERESTS—132.3%
		∎ ELECTRIC, GAS AND WATER—41.9%
	1,670,000	CenterPoint Energy, Inc.		$43,770,700
	860,000	Emera, Inc. (Canada)		30,031,431
	866,000	innogy SE (Germany)⁽²⁾		29,620,781
	2,871,000	National Grid plc (United Kingdom)		33,506,016
	218,000	NextEra Energy, Inc.		26,970,960
	731,700	Southern Co.		36,167,931
	2,900,381	United Utilities Group plc (United Kingdom)		33,458,497
	564,000	WEC Energy Group, Inc.		33,304,200
	656,293	Westar Energy, Inc.		35,892,664

				302,723,180

		∎ OIL & GAS STORAGE, TRANSPORTATION AND PRODUCTION—59.1%
	4,287,455	APA Group (Australia)		27,378,426
	480,184	DCP Midstream LP		18,664,752
	688,861	Enbridge Energy Partners LP		13,343,238
	536,346	Energy Transfer Partners LP		20,461,600
	802,800	Enterprise Products Partners LP		22,743,324
	500,000	GasLog Partners LP (Marshall Islands)		11,450,000
	355,500	Genesis Energy LP		12,893,985
	1,431,854	Kinder Morgan, Inc.		31,987,618
	484,223	KNOT Offshore Partners LP (Marshall Islands)		10,556,061
	400,575	MPLX LP		15,161,764
	285,716	NuStar Energy LP		15,802,952
	856,000	Pembina Pipeline Corp. (Canada)		26,556,557
	756,000	Plains All American Pipeline LP		23,730,840
	710,000	Sunoco Logistics Partners LP		18,119,200
	500,000	Sunoco LP		14,150,000
	343,298	Tallgrass Energy Partners LP		16,986,385
	446,528	Targa Resources Corp.		25,728,943
	278,834	TC Pipelines LP		16,752,347
	1,080,000	TransCanada Corp. (Canada)		50,951,931
	814,270	Williams Partners LP		33,417,641

				426,837,564

		∎ TELECOMMUNICATIONS—31.3%
	810,000	BCE, Inc. (Canada)		36,547,200
	1,119,440	Communications Sales & Leasing, Inc.		29,418,883
	225,000	Crown Castle International Corp.		19,761,750
	2,974,000	Frontier Communications Corp.		10,379,260
	1,468,000	Orange SA (France)		22,701,031
	15,565,000	Spark New Zealand Ltd. (New Zealand)		40,084,486
	6,211,000	Telia Company AB (Sweden)		25,185,967
	6,860,000	Telstra Corp., Ltd. (Australia)		26,013,029
	1,978,200	Windstream Holdings, Inc.		15,983,856

				226,075,462

		Total Common Stocks & MLP Interests (Cost $873,432,863)		955,636,206

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

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

JANUARY 31, 2017

(Unaudited)


Shares		Description	Value
	SHORT-TERM INVESTMENT—2.9%
		∎ MONEY MARKET MUTUAL FUND—2.9%
	21,240,386	BlackRock Liquidity Funds FedFund Portfolio Institutional Shares (seven-day effective yield 0.470%)⁽³⁾		$21,240,386

		Total Short-term Investment (Cost $21,240,386)		21,240,386

	TOTAL INVESTMENTS—135.2%
	(Cost $894,673,249)			976,876,592	⁽¹⁾

	Secured borrowings—(22.1)%			(160,000,000	)
	Mandatory Redeemable Preferred Shares at liquidation value—(13.8)%			(100,000,000	)
	Other assets less other liabilities—0.7%			5,839,766

	NET ASSETS APPLICABLE TO COMMON STOCK—100.0%			$722,716,358

⁽¹⁾	All or a portion of the total investments have been pledged as collateral for borrowings.

⁽²⁾	Non-income producing.

⁽³⁾	Shares of this fund are publicly offered and its prospectus and annual report are publicly available.

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

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

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

JANUARY 31, 2017

(Unaudited)

SECTOR ALLOCATIONS *


Oil & Gas Storage, Transportation and Production	44	%
Electric, Gas and Water	31
Telecommunications	23
Money Market Mutual Fund	2
Total	100	%

COUNTRY WEIGHTINGS *


United States	59	%
Canada	15
United Kingdom	7
Australia	5
New Zealand	4
Germany	3
Sweden	3
France	2
Marshall Islands	2
Total	100	%

CURRENCY EXPOSURE *


United States Dollar	65	%
Canadian Dollar	11
British Pound	7
Australian Dollar	5
Euro	5
New Zealand Dollar	4
Swedish Krona	3
Total	100	%

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

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

DUFF & PHELPS GLOBAL UTILITY INCOME FUND INC.

STATEMENT OF NET ASSETS – (Continued)

JANUARY 31, 2017

(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, 2017:


	Level 1
Common stocks & MLP interests		$955,636,206
Money market mutual fund		21,240,386

Total		$976,876,592

There were no Level 2 or Level 3 priced securities held and there were no transfers between Level 1 and Level 2 related to securities held at January 31, 2017.

Note 2. Federal Income Tax Information

At October 31, 2016, the Fund’s most recent fiscal tax year-end, the federal tax cost and aggregate gross unrealized appreciation (depreciation) were as follows:

Federal

Tax Cost

Unrealized
Appreciation

Unrealized
Depreciation

Net Unrealized
Appreciation

Investments

$862,532,332

$159,321,971

$(66,181,114)

$93,140,857

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

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

Item 2. Controls and Procedures.

(a)

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

(b)

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

Item 3. Exhibits.


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

SIGNATURES

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

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


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

Date March 17, 2017

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 17, 2017


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

Date March 17, 2017