UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
| Investment Company Act file number: | 811-07358 | |
| Exact name of registrant as specified in charter: | Duff & Phelps Utility And Corporate Bond Trust Inc. | |
| Address of principal executive offices: | 55 East Monroe St Suite 3600 Chicago, IL 60603 | |
| Name and address of agent for service: | Alan Meder, Chief Financial Officer 55 East Monroe St. Suite 3600 Chicago, IL 60603 | |
| Registrant’s telephone number, including area code: | 312-541-5555 | |
| Date of fiscal year end: | 12/31/05 | |
| Date of reporting period: | 9/30/05 | |
Item 1 – Schedule of Investments – [ INSERT SCHEDULE ]
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
September 30, 2005
(Unaudited)
| Ratings |
||||||||||
| Principal Amount (000) |
Description |
Moody’s |
Standard Poor’s |
Market Value | ||||||
| LONG-TERM INVESTMENTS - 136.7% | ||||||||||
| U.S. Government and Agency Obligations (a) - 13.9% | ||||||||||
| Federal National Mortgage Association, | ||||||||||
| $ | 584 | 8.00%, 10/01/30 |
Aaa | AAA | $ | 624,798 | ||||
| 1,723 | 7.00%, 12/01/31 |
Aaa | AAA | 1,803,827 | ||||||
| Government National Mortgage Association Pass-Through Certificates, | ||||||||||
| 44 | 7.00%, 3/15/26 |
Aaa | AAA | 46,274 | ||||||
| 252 | 7.50%, 5/15/26 |
Aaa | AAA | 268,363 | ||||||
| 154 | 8.00%, 11/15/30 |
Aaa | AAA | 164,814 | ||||||
| 140 | 8.00%, 2/15/31 |
Aaa | AAA | 150,007 | ||||||
| U.S. Treasury Bonds, | ||||||||||
| 40,000 | 10.375%, 11/15/12 |
Aaa | AAA | 44,984,400 | ||||||
| Total U.S. Government and Agency Obligations (cost $49,500,449) |
48,042,483 | |||||||||
| Corporate Bonds - 118.1% | ||||||||||
| Auto & Truck - 5.0% | ||||||||||
| 10,000 | DaimlerChrysler NA Holdings, | |||||||||
| 7.20%, 9/01/09 |
A3 | BBB | 10,677,460 | |||||||
| 7,250 | Ford Motor Company, | |||||||||
| 9.215%, 9/15/21 |
Ba1 | BB+ | 6,579,375 | |||||||
| 17,256,835 | ||||||||||
| Financial - 27.0% | ||||||||||
| 7,000 | Countrywide Capital I, | |||||||||
| 8.00%, 12/15/26 |
Baa1 | BBB+ | 7,193,291 | |||||||
| John Deere Capital Corp., | ||||||||||
| 5,000 | 3.125%, 12/15/05 |
A3 | A- | 4,990,220 | ||||||
| 5,000 | 5.125%, 10/19/06 |
A3 | A- | 5,032,730 | ||||||
| 5,000 | General Electric Capital Corporation, | |||||||||
| 8.625%, 6/15/08 |
Aaa | AAA | 5,476,880 | |||||||
| 10,000 | Great Western Financial Trust II, | |||||||||
| 8.206%, 2/01/27 |
Baa1 | BBB | 10,772,310 | |||||||
| 16,000 | Household Finance Corp., | |||||||||
| 8.00%, 7/15/10 |
A1 | A | 18,072,208 | |||||||
| 10,000 | KeyCorp Institution Capital B, | |||||||||
| 8.25%, 12/15/26 |
A3 | BBB | 10,741,410 | |||||||
| Merrill Lynch & Co., | ||||||||||
| 5,000 | 6.50%, 7/15/18 |
Aa3 | A+ | 5,598,500 | ||||||
| 5,000 | 6.875%, 11/15/18 |
Aa3 | A+ | 5,776,280 | ||||||
| 10,000 | NationsBank Capital Trust IV, | |||||||||
| 8.25%, 4/15/27 |
Aa3 | A | 10,814,850 | |||||||
| 7,500 | Verizon Global Funding Corp., | |||||||||
| 7.375%, 9/01/12 |
A2 | A+ | 8,522,820 | |||||||
| 92,991,499 | ||||||||||
| Industrial - 25.9% | ||||||||||
| 5,000 | Archer-Daniels-Midland Company, | |||||||||
| 8.125%, 6/01/12 |
A2 | A | 5,892,910 | |||||||
| 5,000 | International Paper Co., | |||||||||
| 3.80%, 4/01/08 |
Baa2 | BBB | 4,875,450 | |||||||
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
September 30, 2005
(Unaudited)
| Ratings |
||||||||||
| Principal Amount (000) |
Description |
Moody’s |
Standard Poor’s |
Market Value | ||||||
| Industrial (Continued) | ||||||||||
| $ | 5,000 | Occidental Petroleum Corporation, | ||||||||
| 9.25%, 8/01/19 |
A3 | A- | $ | 6,867,485 | ||||||
| 5,000 | Sun Company, Inc., | |||||||||
| 9.00%, 11/01/24 |
Baa2 | BBB | 6,870,710 | |||||||
| Tele-Communications, Inc., | ||||||||||
| 5,275 | 10.125%, 4/15/22 |
Baa2 | BBB+ | 7,366,036 | ||||||
| 3,200 | 9.875%, 6/15/22 |
Baa2 | WR | 4,434,672 | ||||||
| 5,000 | Time Warner Entertainment Company, L.P., | |||||||||
| 8.875%, 10/01/12 |
Baa1 | BBB+ | 5,986,505 | |||||||
| 5,000 | Time Warner Inc., | |||||||||
| 9.15%, 2/01/23 |
Baa1 | BBB+ | 6,473,615 | |||||||
| 10,000 | Trans-Canada Pipelines Limited, | |||||||||
| 9.875%, 1/01/21 |
A2 | A- | 14,574,110 | |||||||
| 10,000 | USX Corporation, | |||||||||
| 9.125%, 1/15/13 |
Baa1 | BBB+ | 12,337,870 | |||||||
| 12,500 | Weyerhaeuser Co., | |||||||||
| 6.75%, 3/15/12 |
Baa2 | BBB | 13,524,638 | |||||||
| 89,204,001 | ||||||||||
| Retail - 1.6% | ||||||||||
| 5,000 | Wal-Mart Stores, Inc., | |||||||||
| 6.875%, 8/10/09 |
Aa2 | AA | 5,389,825 | |||||||
| Telephone - 17.8% | ||||||||||
| 10,000 | Bell Canada Inc., | |||||||||
| 9.50%, 10/15/10 |
A3 | A | 11,930,040 | |||||||
| 5,000 | British Telecom PLC, | |||||||||
| 7.875%, 12/15/05 |
Baa1 | A- | 5,034,215 | |||||||
| 12,000 | Deutsche Telekom International Finance, | |||||||||
| 8.50%, 6/15/10 |
A3 | A- | 13,618,176 | |||||||
| 5,000 | France Telecom SA | |||||||||
| 7.75%, 3/01/11 |
A3 | A- | 5,683,700 | |||||||
| 5,000 | Koninklijke (Royal) KPN NV, | |||||||||
| 8.00%, 10/01/10 |
Baa1 | A- | 5,676,525 | |||||||
| 5,000 | New York Telephone Co., | |||||||||
| 8.625%, 11/15/10 |
Baa2 | A+ | 5,726,035 | |||||||
| 10,125 | Sprint Corp., | |||||||||
| 9.25%, 4/15/22 |
Baa2 | A- | 13,555,026 | |||||||
| 61,223,717 | ||||||||||
| Utilities - Electric - 40.8% | ||||||||||
| 2,750 | Alabama Power Co., | |||||||||
| 7.125%, 10/01/07 |
A2 | A | 2,881,054 | |||||||
| 10,000 | CalEnergy Company, Inc., | |||||||||
| 8.48%, 9/15/28 |
Baa3 | BBB- | 12,927,080 | |||||||
| 17,438 | ComEd Financing II, | |||||||||
| 8.50%, 1/15/27 |
Baa2 | BBB | 18,201,872 | |||||||
| 10,000 | Dominion Resources, Inc., | |||||||||
| 8.125%, 6/15/10 |
Baa1 | BBB+ | 11,283,620 | |||||||
| 5,000 | DTE Energy Co., | |||||||||
| 6.45%, 6/01/06 |
Baa2 | BBB- | 5,061,585 | |||||||
| 10,000 | Duke Energy Corporation, | |||||||||
| 7.375%, 3/01/10 |
Baa1 | BBB | 10,940,870 | |||||||
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
September 30, 2005
(Unaudited)
| Ratings |
||||||||||
| Principal Amount (000) |
Description |
Moody’s |
Standard Poor’s |
Market Value | ||||||
| Utilites - Electric (Continued) | ||||||||||
| $ | 10,000 | Hydro-Quebec, | ||||||||
| 7.50%, 4/01/16 |
A1 | A+ | $ | 12,155,760 | ||||||
| 8,485 | Illinois Power Co., | |||||||||
| 7.50%, 6/15/09 |
Baa1 | BBB+ | 9,200,828 | |||||||
| 10,088 | KeySpan Gas East Corporation, | |||||||||
| 7.875%, 2/01/10 |
A2 | A+ | 11,318,726 | |||||||
| 5,000 | PSE&G Power LLC, | |||||||||
| 7.75%, 4/15/11 |
Baa1 | BBB | 5,604,880 | |||||||
| 10,000 | Sempra Energy, | |||||||||
| 7.95%, 3/01/10 |
Baa1 | BBB+ | 11,115,750 | |||||||
| 5,512 | Southern California Edison Company, | |||||||||
| 7.625%, 1/15/10 |
Baa1 | BBB | 6,079,383 | |||||||
| 6,000 | South Carolina Electric & Gas Co., | |||||||||
| 6.125%, 3/01/09 |
A1 | A- | 6,271,818 | |||||||
| 6,000 | Wisconsin Energy Corp., | |||||||||
| 6.50%, 4/01/11 |
A3 | BBB+ | 6,436,548 | |||||||
| 10,131 | Xcel Energy, Inc., | |||||||||
| 7.00%, 12/01/10 |
Baa1 | BBB- | 11,070,275 | |||||||
| 140,550,049 | ||||||||||
| Total Corporate Bonds (cost $390,966,525) |
406,615,926 | |||||||||
| Asset-Backed Securities - 4.7% | ||||||||||
| 5,000 | California Infrastructure SCE 1997-1 A7 | |||||||||
| 6.420%, 12/26/09 |
Aaa | AAA | 5,165,457 | |||||||
| 5,000 | Detroit Edison Securitization Funding LLC 2001-1 A6 | |||||||||
| 6.620%, 3/01/16 |
Aaa | AAA | 5,624,216 | |||||||
| 5,000 | PSE&G Transition Funding 2001-1 A5 | |||||||||
| 6.450%, 3/15/13 |
Aaa | AAA | 5,381,379 | |||||||
| Total Asset-Backed (cost $17,012,500) |
16,171,052 | |||||||||
| Total Long-Term Investments (cost $457,479,474) |
470,829,461 | |||||||||
DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
PORTFOLIO OF INVESTMENTS
September 30, 2005
(Unaudited)
| Ratings |
||||||||||
| Principal Amount (000) |
Description |
Moody’s |
Standard Poor’s |
Market Value |
||||||
| SHORT-TERM INVESTMENTS - 0.7% | ||||||||||
| $2,300 | U.S. Treasury Bills, (a) |
|||||||||
| 2.97%, 10/27/05 |
Aaa | AAA | $ | 2,295,066 | ||||||
| Total Short-Term Investments (cost $2,295,066) |
2,295,066 | |||||||||
| Total Investments - 137.4% (cost $459,774,540) |
473,124,527 | |||||||||
| Liabilities, less cash and other assets - (37.4%) | (128,794,604 | ) | ||||||||
| Net Assets - 100% | $ | 344,329,923 | ||||||||
| (a) | AAA ratings on U.S. government and agency obligations are assumed because they are not rated. |
Notes
Security Valuation: The Fund values its fixed-income securities by using market quotations, prices provided by market makers or estimates of market values obtained from yield data relating to instruments with similar characteristics in accordance with procedures established by the Board of Directors of the Fund (the “Board”). Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by and under the general supervision and responsibility of the Fund’s Board.
Debt securities that mature in 60 days or less are valued at amortized cost unless this method does not represent fair value.
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of September 30, 2005 was as follows:
| Tax Basis of Investment |
Appreciation |
Depreciation |
Net Depreciation | |||
| $ 475,720,421 |
$13,776,777 | $(16,372,671) | ($2,595,894) |
Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (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 last fiscal quarter covered by this report 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 Section 302 of the Sarbanes-Oxley Act – Attached hereto
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.
| Duff & Phelps Utility and Corporate Bond Trust Inc | ||
| By: | /s/ NATHAN I. PARTAIN | |
| Nathan I. Partain Principal Executive Officer of Duff & Phelps Utility and Corporate Bond Trust Inc | ||
Date: November 17, 2005
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: | /s/ NATHAN I. PARTAIN | |
| Nathan I. Partain Principal Executive Officer of Duff & Phelps Utility and Corporate Bond Trust Inc. | ||
Date: November 17, 2005
| By: | /s/ ALAN M. MEDER | |
| Alan M. Meder, Principal Financial and Accounting Officer of Duff & Phelps Utility and Corporate Bond Trust Inc. | ||
Date: November 17, 2005