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

<![CDATA[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

Duff & Phelps Global Utility Income Fund Inc.

200 South Wacker Drive, Suite 500

Chicago, Illinois 60606

Lawrence R. Hamilton, Esq.

Mayer Brown LLP

71 South Wacker Drive

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, 2014

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, 2014

(Unaudited)


Shares		Description	Value (Note 1)
	COMMON STOCKS & MLP INTERESTS—127.1%
		¢ ELECTRIC, GAS AND WATER—50.7%
	19,500,000	Duet Group (Australia)	$	35,666,778
	531,333	Duke Energy Corp.		37,522,736
	1,384,000	GDF Suez (France)		30,584,449
	587,000	Integrys Energy Group, Inc.		31,897,580
	4,537,000	National Grid plc (United Kingdom)		58,846,526
	1,570,000	Pepco Holdings, Inc.⁽¹⁾		30,505,100
	1,208,000	PPL Corp.		36,928,560
	1,362,000	Scottish & Southern Energy plc (United Kingdom)		29,263,599
	750,000	Southern Co.		30,930,000
	926,200	TransAlta Corp. (Canada)		12,191,328
	3,045,000	United Utilities Group plc (United Kingdom)		35,840,608
	1,136,000	Westar Energy, Inc.		37,681,120

				407,858,384

		¢ OIL & GAS STORAGE AND TRANSPORTATION—42.2%
	520,300	Access Midstream Partners LP		29,162,815
	4,287,455	APA Group (Australia)		22,475,501
	310,700	Buckeye Partners LP		22,677,993
	247,184	DCP Midstream Partners LP		12,416,052
	688,861	Enbridge Energy Partners LP		20,238,736
	536,346	Energy Transfer Partners LP		29,772,567
	401,400	Enterprise Products Partners LP		26,644,932
	280,500	Genesis Energy LP		15,435,915
	283,803	Kinder Morgan Energy Partners LP		22,556,662
	800,000	Kinder Morgan, Inc.		27,208,000
	326,500	MarkWest Energy Partners LP		22,917,035
	502,465	Targa Resources Partners LP		26,384,437
	353,834	TC Pipelines LP		16,460,358
	387,020	Teekay LNG Partners LP (Marshall Islands)		15,662,699
	384,919	Teekay Offshore Partners LP (Marshall Islands)		12,117,250
	339,600	Williams Partners LP		17,013,960

				339,144,912

		¢ TELECOMMUNICATIONS—34.2%
	283,042	CenturyLink, Inc.		8,168,592
	4,870,000	Frontier Communications Corp.		22,889,000
	15,557,000	Singapore Telecommunications Ltd. (Singapore)		43,012,501
	71,000	Swisscom AG (Switzerland)		39,053,328
	5,382,000	TDC A/S (Denmark)		50,586,364
	6,075,000	Telecom Corporation of New Zealand Ltd. (New Zealand)		11,543,733
	9,010,000	Telstra Corp., Ltd. (Australia)		40,529,466
	3,767,000	Vodafone Group plc (United Kingdom)		14,029,259
	6,095,200	Windstream Holdings, Inc.		45,592,096

				275,404,339

		Total Common Stocks & MLP Interests (Cost $882,255,745)		1,022,407,635

	SHORT-TERM INVESTMENTS—3.1%
		¢ MONEY MARKET MUTUAL FUNDS—3.1%
	24,871,405	Fidelity Institutional Money Market Portfolio I (Seven-day effective yield 0.080%)		24,871,405

		Total Short-Term Investments (Cost $24,871,405)		24,871,405

	TOTAL INVESTMENTS BEFORE WRITTEN OPTIONS—130.2%
	(Cost $907,127,150)		$	1,047,279,040

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, 2014

(Unaudited)


Contracts	Description	Value (Note 1)
WRITTEN OPTIONS—(0.1)%

	¢ CALL OPTIONS—(0.1)%
15,700	Pepco Holdings, Inc. Expiration 5/17/14	$	(471,000	)

	Total Written Options (Premiums received $376,793)		(471,000	)

TOTAL INVESTMENTS AFTER WRITTEN OPTIONS—130.1% (Cost $906,750,357)			1,046,808,040

Borrowings—(32.3)%			(260,000,000	)
Other assets less liabilities—2.2%			17,312,536


NET ASSETS APPLICABLE TO COMMON STOCK—100.0%		$	804,120,576

⁽¹⁾	All or a portion segregated as collateral for written options under an escrow receipt.

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, 2014

(Unaudited)

SECTOR WEIGHTINGS *


Electric, Gas and Water	39	%
Oil & Gas Storage and Transportation	33
Telecommunications	26
Other (includes short-term investments)	2
Total	100	%

COUNTRY WEIGHTINGS *


United States	57	%
United Kingdom	13
Australia	9
Denmark	5
Singapore	4
Switzerland	4
France	3
Other	5
Total	100	%

CURRENCY EXPOSURE *


United States Dollar	60	%
British Pound	13
Australian Dollar	9
Danish Krone	5
Singapore Dollar	4
Swiss Franc	4
Euro	3
New Zealand Dollar	1
Canadian Dollar	1
	100	%

*	Percentages are based on total investments before written options rather than net assets applicable to common stock and include securities pledged as collateral under the Fund’s credit agreement.

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, 2014

(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, 2014:


	Level 1
Common stocks & MLP interests	$	1,022,407,635
Money market mutual fund		24,871,405
Written options		(471,000	)

Total	$	1,046,808,040

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, 2014.

Note 2. Federal Income Tax Information

At October 31, 2013, 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 (Depreciation)
Investments	$920,505,570	$191,701,303	($27,702,846)	$163,998,457
Written options	(359,366)	—	(129,546)	(129,546)

The difference between the book basis and tax basis of unrealized appreciation (depreciation) and cost of investments is primarily attributable to investments in Passive Foreign Investment Companies and MLP earnings and basis adjustments.

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 14, 2014

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 14, 2014


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

Date March 14, 2014