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 811-21496
---------------------------
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1001 Warrenville Road
Suite 300
LISLE, IL 60532
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
W. Scott Jardine
First Trust Portfolios, LP
1001 Warrenville Road
Suite 300
LISLE, IL 60532
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 630-241-4141
------------
Date of fiscal year end: MAY 31, 2004
------------
Date of reporting period: AUGUST 31, 2004
---------------
Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q 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 the
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. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule of Investments is attached herewith.
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
Portfolio of Investments
August 31, 2004 (Unaudited)
MARKET
SHARES DESCRIPTION VALUE
------------ ----------------------------------------------- ------------
COMMON STOCKS - 65.8%
AUSTRALIA - 6.4%
330,015 Australian Pipeline Trust $ 652,511
12,040,788 Envestra Ltd. 9,267,824
997,154 GasNet Australia Group 1,619,520
--------------------
11,539,855
--------------------
ITALY - 8.3%
1,950,000 Enel SPA 15,048,491
--------------------
UNITED KINGDOM - 37.5%
1,323,275 AWG plc 15,092,397
439,327,300 AWG plc, Redeemable* 766,617
1,761,381 Kelda Group plc 16,714,547
1,000,000 National Grid Transco plc 8,342,626
955,000 Severn Trent plc 14,877,848
1,197,999 United Utilities plc 11,799,387
--------------------
67,593,422
--------------------
UNITED STATES - 13.6%
265,000 Ameren Corp. 12,399,350
285,000 Consolidated Edison, Inc. 12,027,000
--------------------
24,426,350
--------------------
TOTAL COMMON STOCKS 118,608,118
--------------------
(Cost $115,513,553)
CANADIAN INCOME TRUSTS - 27.8%
1,723,300 Northland Power Income Fund 14,910,155
1,672,800 Pembina Pipeline Income Fund 15,095,319
1,390,300 The Consumer's Waterheater Income Fund 14,698,603
629,200 UE Waterheater Income Fund 5,396,144
--------------------
TOTAL CANADIAN INCOME TRUSTS 50,100,221
--------------------
(Cost $46,434,805)
PRINCIPAL MARKET
VALUE DESCRIPTION VALUE
------------ ----------------------------------------------- ------------
SENIOR FLOATING RATE INTERESTS - 41.1%
BROADCAST MEDIA - 1.7%
$ 1,000,000 Bragg Communications, Inc., Term Loan, 8/31/11 1,007,500
Cablecom
1,000,000 Term Loan B, 4/15/12 997,500
1,000,000 Term Loan C, 4/15/13 997,500
--------------------
3,002,500
--------------------
CABLE TELEVISION - 3.2%
3,000,000 Century Cable Holdings, LLC,
Term Loan, 6/30/09 2,920,713
3,000,000 Charter Communications Operating, LLC,
Term Loan A, 4/27/10 2,924,658
--------------------
5,845,371
--------------------
COAL - 0.6%
1,000,000 Foundation PA Coal Company,
Term Loan B, 7/30/11 1,009,250
--------------------
1
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund -
(Continued)
Portfolio of Investments
August 31, 2004 (Unaudited)
PRINCIPAL MARKET
VALUE DESCRIPTION VALUE
------------ ----------------------------------------------- ------------
SENIOR FLOATING RATE INTERESTS - CONTINUED
DIVERSIFIED/CONGLOMERATE SERVICES - 1.1%
$ 1,864,140 The Kansas City Southern Railway Company, Term
Loan B, 3/31/08 $ 1,882,004
--------------------
ENTERTAINMENT - 1.1%
2,000,000 NTL Investment Holdings Ltd.,
Term Loan, 5/10/12 1,973,334
--------------------
ENVIRONMENTAL SERVICES - 2.5%
1,739,130 Duratek, Inc., Term Loan, 12/16/09 1,733,696
Envirosolutions Holdings, Inc.
2,407,105 Term Loan, 3/01/09+ 2,401,087
384,797 Term Loan DD, 3/01/09+ 383,835
--------------------
4,518,618
--------------------
HEALTHCARE (PROVIDERS & SERVICES) - 7.8%
2,000,000 Ardent Health Services LLC,
Term Loan B, 8/12/11 2,000,000
2,000,000 Community Health Systems, Inc.,
Term Loan, 8/19/11 1,999,286
2,000,000 Genesis Healthcare Corp.,
Term Loan B, 12/01/10 2,024,166
2,000,000 Iasis Healthcare Corp., Term Loan B, 6/22/11 2,021,876
2,000,000 MedCath Holdings Corp., Term Loan, 6/30/11 2,023,750
Skilled Healthcare Group, Inc.
1,000,000 Term Loan, 1/31/11 1,020,000
1,000,000 Term Loan, 7/31/10 1,006,250
2,000,000 Vanguard Health Systems, Inc.,
Term Loan, 5/18/11 1,997,500
--------------------
14,092,828
--------------------
OIL & GAS - 4.2%
2,000,000 La Grange Acquisition, LP, Term Loan, 1/18/08 2,025,000
Quest Cherokee, LLC
284,444 L of C, 12/31/08*** 285,867
2,275,556 Term Loan, 7/22/10 2,286,933
1,000,000 SemCrude, L.P., Term Loan, 8/27/10 1,008,750
1,000,000 Transwestern Pipeline Company,
Term Loan B, 4/30/09 1,006,667
1,000,000 Vulcan Energy Corp., Term Loan, 7/23/10 1,012,500
--------------------
7,625,717
--------------------
TELECOMMUNICATIONS (WIRELESS) - 2.8%
2,000,000 AAT Communications Corp.,
Term Loan B, 1/16/12 2,019,166
2,000,000 American Tower Corp., Term Loan B, 8/31/11 2,025,626
1,000,000 GCI Holdings, Inc., Term Loan, 10/31/07 1,006,250
--------------------
5,051,042
--------------------
UTILITY (ELECTRIC) - 16.1%
1,995,000 Allegheny Energy Supply Company,
Term Loan B, 3/08/11 2,021,434
2,000,000 Astoria Energy LLC, Term Loan, 4/16/12 2,023,334
2
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund -
(Continued)
Portfolio of Investments
August 31, 2004 (Unaudited)
PRINCIPAL MARKET
VALUE DESCRIPTION VALUE
------------ ----------------------------------------------- ------------
SENIOR FLOATING RATE INTERESTS - CONTINUED
UTILITY (ELECTRIC) - CONTINUED
CenterPoint Energy, Inc.
$ 2,000,000 Revolving Credit, 10/07/06+ $ 1,991,666
1,994,565 Term Loan, 10/07/06+ 1,999,552
1,995,000 Cogentrix Delaware Holdings, Inc.,
Term Loan, 2/25/09 2,023,678
2,000,000 Coleto Creek WLE, LP, Term Loan C, 6/30/12 2,028,334
1,995,000 Midwest Generation, LLC, Term Loan, 4/27/11 2,016,197
2,000,000 Mission Energy Holdings International, LLC,
Term Loan, 12/11/06 2,003,750
2,000,000 Nevada Power Company, L of C, 5/04/09*** 2,010,000
NRG Energy, Inc.
719,674 Credit Link, 12/23/10 740,905
1,275,313 Term Loan, 6/23/10 1,312,935
2,436,590 Reliant Resources, Inc., Term Loan, 3/15/07 2,433,544
1,201,361 Riverside Energy Center, LLC,
Term Loan, 6/24/11 1,210,371
Rocky Mountain Energy Center, LLC,
127,438 L of C, 6/24/11*** 128,393
1,671,202 Term Loan, 6/24/11 1,683,736
2,500,000 Saguaro Utility Group I Corp. (Unisource),
Term Loan DD, 3/25/11+ 2,467,187
1,000,000 Sierra Pacific Power Company,
L of C, 5/04/08*** 1,005,000
--------------------
29,100,016
--------------------
TOTAL SENIOR FLOATING RATE INTERESTS 74,100,680
--------------------
(Cost $70,302,401)
REPURCHASE AGREEMENT - 6.4%
(Cost $11,600,000)
11,600,000 Agreement with Wachovia Capital Markets, LLC,
1.470% dated 8/31/04, to be repurchased at
$11,600,474 on 9/01/04, collateralized by
$10,695,000 U.S. Treasury Bond, 6.500% due
10/15/06 (Value $11,831,996) 11,600,000
--------------------
UNFUNDED LOAN COMMITMENT - (2.1)% (3,824,161)
--------------------
TOTAL INVESTMENTS - 139.0% 250,584,858
(Cost $243,850,759)**
PAYABLE FOR INVESTMENTS PURCHASED - (7.3)% (9,355,990)
NET OTHER ASSETS AND LIABILITIES - (31.7)% (60,974,900)
--------------------
NET ASSETS - 100.0% $ 180,253,968
====================
--------------------------------------------------------------------------------------------
+ Unfunded Loan Commitment.
* Non-income producing security.
** Aggregate cost for federal tax purposes.
*** L of C - Letter of Credit
3
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund -
(Continued)
Portfolio of Investments
August 31, 2004 (Unaudited)
INDUSTRY DIVERSIFICATION AS A PERCENTAGE OF NET ASSETS:
Common Stocks and Canadian Income Trusts:
Water-Utilities 26.3%
Electric-Utilities 21.9
Heating/Energy Services 11.2
Multi-Utilities 11.2
Gas-Pipelines 9.6
Power Generation 8.3
Gas-Utilities 5.1
-----------
Total Common Stocks 93.6
Senior Floating Rate Interests 41.1
Repurchase Agreement 6.4
Payable for Investments Purchased (7.3)
Unfunded Loan Commitments (2.1)
Net Other Assets and Liabilities (31.7)
-----------
100.0%
-----------
4
Notes to Quarterly Portfolio of Investments
August 31, 2004 (Unaudited)
1. VALUATION AND INVESTMENT PRACTICES
PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of the Fund is computed based
upon the value of the Fund's portfolio and other assets. The NAV is determined
as of the close of regular trading on the New York Stock Exchange ("NYSE"),
normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading.
Domestic debt securities and foreign securities are priced using data reflecting
the earlier closing of the principal markets for those securities. The NAV is
computed by dividing the value of all assets of the Fund (including accrued
interest and dividends), less all liabilities (including accrued expenses and
dividends declared but unpaid), by the total number of shares outstanding.
The Fund's investments are valued daily at market value, or in the absence of
market value, with respect to any portfolio securities, at fair value in
accordance with valuation procedures adopted by the Board of Trustees. A
majority of the Fund's assets are valued using market information supplied by
third parties. In the event that market quotations are not readily available,
the pricing service does not provide a valuation for a particular asset, or the
valuations are deemed unreliable, or if events occurring after the close of the
principal markets for particular securities (e.g., domestic debt and foreign
securities), but before the Fund values its assets, would materially affect NAV,
First Trust Advisors L.P. ("First Trust") may use a fair value method in good
faith to value the Fund's securities and investments. The use of fair value
pricing by the Fund is governed by valuation procedures approved by the Fund's
Board of Trustees, and in accordance with the provisions of the 1940 Act.
Foreign securities traded outside the United States are generally valued as of
the time their trading is complete, which is usually different from the close of
the NYSE. Occasionally, events affecting the value of such securities may occur
between such times and the close of the NYSE that will not be reflected in the
computation of a Fund's NAV. If events materially affecting the value of such
securities occur during such period, these securities will be valued at their
fair value according to procedures decided upon in good faith by the Fund's
Board of Trustees. All securities and other assets of the Fund initially
expressed in foreign currencies will be converted to U.S. dollars using exchange
rates in effect at the time of valuation.
Portfolio securities listed on any exchange other than the NASDAQ National
Market ("NASDAQ") are valued at the last sale price on the business day of which
such value is being determined. If there has been no sale on such day, the
securities are valued at the mean of the most recent bid and asked prices on
such day. Securities trading on the NASDAQ are valued at the NASDAQ Official
Closing Price as determined by NASDAQ. Portfolio securities traded in the
over-the-counter market, but excluding securities trading on the NASDAQ, are
valued at the closing bid prices. Short-term investments that mature in 60 days
or less are valued at amortized cost.
The Senior Floating Rate Interests ("Senior Loans") in which the Fund invests
are not listed on any securities exchange or board of trade. Senior Loans are
typically bought and sold by institutional investors in individually negotiated
private transactions that function in many respects like an over-the-counter
secondary market, although typically no formal market-makers exist. This market,
while having substantially grown in the past several years, generally has fewer
trades and less liquidity than the secondary market for other types of
securities. Some Senior Loans have few or no trades, or trade infrequently, and
information regarding a specific Senior Loan may not be widely available or may
be incomplete. Accordingly, determinations of the market value of Senior Loans
may be based on infrequent and dated information. Because there is less
reliable, objective data available, elements of judgment may play a greater role
in valuation of Senior Loans than for other types of securities. Typically
Senior Loans are valued using information provided by an independent third
5
Notes to Quarterly Portfolio of Investments
August 31, 2004 (Continued) (Unaudited)
party pricing service. If the pricing service cannot or does not provide a
valuation for a particular Senior Loan or such valuation is deemed unreliable,
First Trust may value such Senior Loan at a fair value as determined in good
faith under procedures approved by the Fund's Board of Trustees, and in
accordance with the provisions of the 1940 Act.
REPURCHASE AGREEMENT:
The Fund engages in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at all times at least equal to the total
amount of the repurchase obligations, including interest. In the event of
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund reviews the value of the collateral and the creditworthiness of
those banks and dealers with which the Fund enters into repurchase agreements to
evaluate potential risks.
SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. The Fund instructs the custodian to segregate assets of
the Fund with a current value at least equal to the amount of its when-issued
purchase commitments.
UNFUNDED LOAN COMMITMENTS:
The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. The Fund is obligated to fund these loan commitments at the
borrower's discretion. These commitments are disclosed in the accompanying
Portfolio of Investments.
2. UNREALIZED APPRECIATION/(DEPRECIATION)
On August 31, 2004, net unrealized appreciation for Federal tax purposes was
$6,734,099, consisting of $8,656,607 aggregate gross unrealized appreciation for
all securities in which there is an excess of value over tax cost and $1,922,508
aggregate gross unrealized depreciation for all securities in which there is an
excess of tax cost over value.
6
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's 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 registrant's 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 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.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are 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.
(Registrant) MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND &
INCOME FUND
------------------------------------------------------------------
By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chief Executive Officer
(principal executive officer)
Date OCTOBER 28, 2004
----------------------------------------------------------------------------
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/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chief Executive Officer
(principal executive officer)
Date OCTOBER 28, 2004
----------------------------------------------------------------------------
By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Chief Financial Officer
(principal financial officer)
Date OCTOBER 28, 2004
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.