UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811- 22040
MLP & Strategic Equity Fund Inc.
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy—Vice President and Secretary
333 West Wacker Drive, Chicago, Illinois 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: 312-917-7700
Date of fiscal year end: October 31
Date of reporting period: July 31, 2011
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 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. § 3507.
Item 1 – Schedule of Investments
Portfolio of Investments (Unaudited)
MLP & Strategic Equity Fund, Inc. (MTP)
July 31, 2011
| Shares/Units | Description (1) | Value | ||||||||||||
| MASTER LIMITED PARTNERSHIPS & MLP AFFILIATES – 109.8% |
||||||||||||||
| Energy Equipment & Services – 1.0% |
||||||||||||||
| 103,341 | Exterran Partners, LP |
$ | 2,449,182 | |||||||||||
| Gas Utilities – 0.9% |
||||||||||||||
| 53,406 | Suburban Propane Partners LP |
2,374,965 | ||||||||||||
| Oil, Gas & Consumable Fuels – 107.9% |
||||||||||||||
| 55,446 | Alliance Resource Partner LP |
4,258,807 | ||||||||||||
| 35,200 | American Midstream Partners LP |
734,976 | ||||||||||||
| 384,804 | Boardwalk Pipline Partners LP |
10,951,522 | ||||||||||||
| 118,913 | Buckeye Partners LP |
7,484,384 | ||||||||||||
| 126,000 | Buckeye Partners LP, Class B Shares (2) |
7,131,004 | ||||||||||||
| 103,120 | Chesapeake Midstream Partners LP |
2,848,174 | ||||||||||||
| 125,800 | Copano Energy LLC |
4,130,014 | ||||||||||||
| 97,461 | Crestwood Midstream Partners LP |
2,544,707 | ||||||||||||
| 124,197 | Crestwood Midstream Partners LP, Class C Shares, (2), (3) |
2,808,401 | ||||||||||||
| 231,882 | DCP Midstream Partners LP |
9,534,988 | ||||||||||||
| 96,170 | Duncan Energy Partners LP |
4,024,715 | ||||||||||||
| 341,100 | El Paso Pipeline Partners LP |
11,999,898 | ||||||||||||
| 277,991 | Enbridge Energy Management LLC, (2) |
8,284,132 | ||||||||||||
| 168,838 | Enbridge Energy Partners LP |
4,980,721 | ||||||||||||
| 274,832 | Energy Transfer Equity LP |
11,358,807 | ||||||||||||
| 23,373 | Energy Transfer Partners LP |
1,096,661 | ||||||||||||
| 285,758 | Enterprise Products Partners LP |
11,884,675 | ||||||||||||
| 78,865 | EV Energy Partners LP |
5,550,519 | ||||||||||||
| 154,764 | Genesis Energy LP |
4,005,292 | ||||||||||||
| 52,970 | Holly Energy Partneres LP |
2,829,657 | ||||||||||||
| 182,706 | Inergy LP |
5,777,164 | ||||||||||||
| 200,640 | Kinder Morgan Management LLC, (2) |
12,291,222 | ||||||||||||
| 217,948 | Magellan Midstream Partners LP |
12,863,291 | ||||||||||||
| 159,862 | Natural Resource Partners LP |
5,002,082 | ||||||||||||
| 26,150 | NGL Energy Partners LP |
523,000 | ||||||||||||
| 4,150 | Niska Gas Storage Partneres LLC |
67,063 | ||||||||||||
| 90,649 | NuStar Energy LP |
5,711,793 | ||||||||||||
| 118,500 | NuStar GP Holdings LLC |
4,326,435 | ||||||||||||
| 30,600 | Oiltanking Partners LP |
730,116 | ||||||||||||
| 299,586 | ONEOK Partners LP |
12,732,405 | ||||||||||||
| 31,100 | Oxford Resource Partners LP |
623,866 | ||||||||||||
| 215,700 | PAA Natural Gas Storage LP |
4,695,789 | ||||||||||||
| 141,238 | Pioneer Southwest Energy Partners LP |
4,357,192 | ||||||||||||
| 223,149 | Plains All American Pipeline LP |
13,875,405 | ||||||||||||
| 375,000 | Regency Energy Partners LP, Subordinate Units |
9,536,250 | ||||||||||||
| 428,813 | Regency Energy Partners LP |
10,904,715 | ||||||||||||
| 227,226 | Spectra Energy Partners, LP |
6,757,701 | ||||||||||||
| 79,470 | Sunoco Logistics Partners LP |
6,816,142 | ||||||||||||
| 216,000 | Targa Resources Partners LP |
7,436,880 | ||||||||||||
| 276,674 | TC Pipelines LP |
12,300,926 | ||||||||||||
| 88,663 | Teekay LNG Partners LP |
3,238,859 | ||||||||||||
| Nuveen Investments | 1 |
Portfolio of Investments (Unaudited)
MLP & Strategic Equity Fund, Inc. (MTP) (continued)
July 31, 2011
| Shares/Units | Description | Value | ||||||||||||
| Oil, Gas & Consumable Fuels (continued) |
||||||||||||||
| 34,676 | TransMontaigne Partners LP |
$ | 1,208,459 | |||||||||||
| 207,520 | Western Gas Partners LP |
7,265,275 | ||||||||||||
| 245,822 | Williams Partners LP |
13,716,868 | ||||||||||||
| Total Oil, Gas & Consumable Fuels |
281,200,952 | |||||||||||||
| Total Investments (cost $184,485,293) – 109.8% |
286,025,099 | |||||||||||||
| Other Assets Less Liabilities – (9.8)% |
(25,450,618) | |||||||||||||
| Net Assets – 100% |
$ | 260,574,481 | ||||||||||||
Fair Value Measurements
Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs 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 speeds, credit risk, etc.). | |
| Level 3 – | Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of July 31, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Investments: |
||||||||||||||||
| Master Limited Partnerships & MLP Affiliates |
$ | 273,680,448 | $ | 9,536,250 | $ | 2,808,401 | $ | 286,025,099 | ||||||||
The following is a reconciliation of the Fund’s Level 3 investments held at the beginning and end of the measurement period:
| Level 3 |
||||
| Balance at the beginning of period |
$ | — | ||
| Gains (losses): |
||||
| Net realized gains (losses) |
— | |||
| Net change in unrealized appreciation (depreciation) |
(191,600 | ) | ||
| Purchases at cost |
3,053,878 | |||
| Sales at proceeds |
(53,877 | ) | ||
| Net discounts (premiums) |
— | |||
| Transfers in to |
— | |||
| Transfers out of |
— | |||
| Balance at the end of period |
$ | 2,808,401 | ||
During the period ended July 31, 2011, the Fund recognized no significant transfers to or from Level 1, Level 2 or Level 3.
Income Tax Information
At July 31, 2011, the cost of investments was $182,828,089.
Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2011, were as follows:
| Gross unrealized: |
||||
| Appreciation |
$ | 103,197,010 | ||
| Depreciation |
— | |||
| Net unrealized appreciation (depreciation) of investments |
$ | 103,197,010 |
| 2 | Nuveen Investments |
| For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Non-income producing; represents a pay-in-kind security which may pay dividends in additional units. |
| (3) | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. |
| Nuveen Investments | 3 |
| Item 2 – Controls and Procedures | ||
| 2(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”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended. | |
| 2(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) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. | |
| Item 3 – Exhibits | ||
| Certifications – Attached hereto | ||
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.
MLP & Strategic Equity Fund Inc.
| By: | /s/ Kevin J. McCarthy | |
| Kevin J. McCarthy | ||
| Vice President and Secretary |
Date: September 29, 2011
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/ Gifford R. Zimmerman | |
| Gifford R. Zimmerman | ||
| Chief Administrative Officer | ||
| (principal executive officer) |
Date: September 29, 2011
| By: | /s/ Stephen D. Foy | |
| Stephen D. Foy | ||
| Vice President and Controller | ||
| (principal financial officer) |
Date: September 29, 2011