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)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant's telephone number, including area
code: 630-765-8000
Date of fiscal year end: NOVEMBER 30
Date of reporting period: AUGUST 31, 2009
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, 100 F Street, NE, Washington, DC
20549. 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(s) of Investments is attached herewith.
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (A) (B)
AUGUST 31, 2009 (UNAUDITED)
SHARES DESCRIPTION VALUE
------------- ---------------------------------------------------------------- --------------
COMMON STOCKS - 83.5%
AUSTRALIA - 16.4%
3,727,779 Envestra Ltd. .................................................................. $ 1,543,854
11,266,894 SP AusNet ...................................................................... 7,332,548
7,614,256 Spark Infrastructure Group ..................................................... 6,886,067
1,083,005 Transurban Group ............................................................... 3,698,042
--------------
19,460,511
--------------
CANADA - 3.1%
58,300 Enbridge, Inc. ................................................................. 2,178,095
50,800 TransCanada Corp. .............................................................. 1,512,747
--------------
3,690,842
--------------
FRANCE - 4.0%
37,208 Aeroports de Paris ............................................................. 3,199,438
29,644 Vinci SA ....................................................................... 1,590,485
--------------
4,789,923
--------------
GERMANY - 7.0%
96,973 E.On AG ........................................................................ 4,102,522
36,067 Fraport AG ..................................................................... 1,821,085
58,564 Hamburger Hafen Und Logistik AG ................................................ 2,447,373
--------------
8,370,980
--------------
ITALY - 14.5%
284,461 Atlantia SPA ................................................................... 6,329,149
798,950 Enel SPA ....................................................................... 4,707,521
644,301 Snam Rete Gas SPA .............................................................. 2,992,710
867,115 Terna SPA ...................................................................... 3,194,778
--------------
17,224,158
--------------
JAPAN - 3.1%
33,078 East Japan Railway Co. ......................................................... 2,161,357
382,155 Tokyo Gas Co. Ltd. ............................................................. 1,531,906
--------------
3,693,263
--------------
NEW ZEALAND - 1.8%
1,836,011 Auckland International Airport, Ltd. ........................................... 2,188,036
--------------
SPAIN - 12.2%
158,603 Albertis Infraestructuras S.A. ................................................. 3,450,403
70,964 Cintra Concesiones de Infraestructuras de Transporte SA ........................ 628,214
220,036 Enagas SA ...................................................................... 4,342,110
128,357 Red Electrica Corp. SA ......................................................... 6,017,252
--------------
14,437,979
--------------
SWITZERLAND - 1.4%
6,325 Flughafen Zuerich AG ........................................................... 1,708,329
--------------
See Notes to Quarterly Portfolio of Investments Page 1
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (A) (B) - (CONTINUED)
AUGUST 31, 2009 (UNAUDITED)
SHARES DESCRIPTION VALUE
------------- ---------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
UNITED KINGDOM - 9.3%
397,561 Pennon Group plc ............................................................... $ 2,983,632
376,072 Severn Trent plc ............................................................... 5,993,698
273,564 United Utilities plc ........................................................... 2,016,540
--------------
10,993,870
--------------
UNITED STATES - 10.7%
76,700 American Water Works Co. ....................................................... 1,541,670
62,530 Exelon Corp. ................................................................... 3,127,751
83,574 ITC Holdings Corp. ............................................................. 3,892,877
174,929 Northeast Utilities ............................................................ 4,161,561
--------------
12,723,859
--------------
TOTAL COMMON STOCKS ............................................................ 99,281,750
--------------
(Cost $110,607,575)
MASTER LIMITED PARTNERSHIPS - 6.6%
UNITED STATES - 6.6%
62,100 Energy Transfer Partners, L.P. ................................................. 2,517,534
90,450 Enterprise Products Partners, L.P. ............................................. 2,442,150
79,681 Magellan Midstream Partners, L.P. .............................................. 2,887,639
--------------
TOTAL MASTER LIMITED PARTNERSHIPS .............................................. 7,847,323
--------------
(Cost $6,725,360)
CANADIAN INCOME TRUSTS - 8.7%
368,860 Consumers' Waterheater Income Fund ............................................. 1,856,514
404,197 Northland Power Income Fund .................................................... 3,858,286
321,849 Pembina Pipeline Income Fund ................................................... 4,545,134
9,300 Pembina Pipeline Income Fund (c) ............................................... 131,334
--------------
TOTAL CANADIAN INCOME TRUSTS ................................................... 10,391,268
--------------
(Cost $9,890,284)
PRINCIPAL RATINGS (D) STATED
VALUE DESCRIPTION MOODY'S S&P COUPON MATURITY (E) VALUE
----------- ---------------------- ------------------ --------- ---------- -----------
SENIOR FLOATING-RATE LOAN INTERESTS (F) - 26.0%
CABLE & SATELLITE - 1.7%
$ 1,000,000 CSC Holdings Inc., Term Loan, Extended Maturity ...... Baa3 BBB- 2.07% 03/29/16 985,250
324,144 UPC Distribution Holdings B.V.,Term Loan N ........... Ba3 B+ 2.03% 12/31/14 305,506
175,856 UPC Distribution Holdings B.V.,Term Loan T ........... Ba3 B+ 3.78% 12/31/16 169,408
500,000 UPC Distribution Holdings B.V.,Term Loan T, Add-On ... Ba3 B+ 3.76% 12/31/16 491,250
-----------
1,951,414
-----------
Page 2 See Notes to Quarterly Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (A) (B) - (CONTINUED)
AUGUST 31, 2009 (UNAUDITED)
PRINCIPAL RATINGS (D) STATED
VALUE DESCRIPTION MOODY'S S&P COUPON MATURITY (E) VALUE
----------- ---------------------- ------------------ --------- ---------- -----------
SENIOR FLOATING-RATE LOAN INTERESTS (F) - (CONTINUED)
ELECTRIC UTILITIES - 5.0%
$ 1,579,114 Astoria Generating Co., Acquisitions, LLC,
Term Loan B ........................................ B1 BB- 2.03%-2.10% 02/23/12 $ 1,500,158
319,848 Covanta Energy Corp., Synthetic Letter of Credit ..... Ba1 BB 2.10% 02/09/14 305,988
635,073 Covanta Energy Corp., Term Loan B .................... Ba1 BB 1.81% 02/09/14 607,553
1,000,000 Mirant North America, LLC, Term Loan ................. Ba2 BB 2.01% 01/03/13 955,357
2,025,275 NRG Energy, Inc., Synthetic Letter of Credit ......... Baa3 BB+ 2.35% 02/01/13 1,909,972
649,954 NRG Energy, Inc., Term Loan B ........................ Baa3 BB+ 2.01%-2.35% 02/01/13 612,951
-----------
5,891,979
-----------
ENVIRONMENTAL & FACILITIES SERVICES - 2.5%
18,020 EnergySolutions, LLC, Synthetic Letter of Credit ..... Ba2 NR (g) 2.52% 06/07/13 17,119
1,641,509 EnergySolutions, LLC, Synthetic Letter of Credit, Add-On Ba2 NR (g) 2.52% 08/09/13 1,559,434
121,316 EnergySolutions, LLC, Term Loan (Duratek) ............ Ba2 NR (g) 2.53% 06/07/13 114,340
227,755 EnergySolutions, LLC,Term Loan (EnergySolutions) ..... Ba2 NR (g) 2.53% 06/07/13 214,659
1,516,757 EnviroSolutions Real Property Holdings, Inc.,
Initial Term Loan (h) .............................. Caa1 CCC 11.00% 07/07/12 1,097,121
-----------
3,002,673
-----------
GAS UTILITIES - 0.7%
832,005 Atlas Pipeline Partners, L.P., Term Loan ............. B1 B 6.75% 07/27/14 809,124
-----------
HEALTH CARE FACILITIES - 3.2%
1,382,437 HCA Inc., Term Loan B ................................ Ba3 BB 2.85% 11/18/13 1,301,027
801,553 Health Management Associates Inc., Term Loan B ....... B1 BB- 2.35% 02/28/14 751,206
945,840 Lifepoint Hospitals Inc., Term Loan B ................ Ba1 BB 2.02% 04/15/12 916,519
889,609 Select Medical Corp., Term Loan B-1 .................. Ba2 B+ 4.16%-6.00% 08/22/14 836,233
-----------
3,804,985
-----------
HEALTH CARE SERVICES - 1.2%
71,494 CHS/Community Health Systems, Inc.,
Delayed Draw Term Loan ............................. Ba3 BB 2.51% 07/25/14 66,601
1,401,423 CHS/Community Health
Systems, Inc.,
Term Loan .......................................... Ba3 BB 2.51%-2.62% 07/25/14 1,305,514
-----------
1,372,115
-----------
See Notes to Quarterly Portfolio of Investments Page 3
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (A) (B) - (CONTINUED)
AUGUST 31, 2009 (UNAUDITED)
PRINCIPAL RATINGS (D) STATED
VALUE DESCRIPTION MOODY'S S&P COUPON MATURITY (E) VALUE
----------- ---------------------- ------------------ --------- ---------- -----------
SENIOR FLOATING-RATE LOAN INTERESTS (F) - (CONTINUED)
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 3.7%
$ 1,107,960 Bicent Power, LLC, Term Loan First Lien ............. Ba3 BB- 2.60% 06/30/14 $ 1,013,783
63,395 Coleto Creek Power, L.P., Synthetic Letter of Credit B1 B+ 3.35% 06/28/13 56,897
870,869 Coleto Creek Power, L.P., Term Loan First Lien ...... B1 B+ 3.01%-3.35% 06/28/13 781,605
1,000,000 Dynegy Holdings, Inc., Synthetic Letter of Credit ... Ba2 BB- 4.02% 04/02/13 961,000
933,333 Longview Power, LLC, Delayed Draw Term Loan ......... Ba3 BB 2.94% 02/28/14 760,667
266,667 Longview Power, LLC, Synthetic Letter of Credit ..... Ba3 BB 2.88% 02/28/14 217,333
800,000 Longview Power, LLC, Term Loan B .................... Ba3 BB 2.94% 02/28/14 652,000
-----------
4,443,285
-----------
MANAGED HEALTH CARE - 2.3%
708,680 IASIS Healthcare Corp., Delayed Draw Term Loan ....... Ba2 B+ 2.26% 03/15/14 667,931
190,890 IASIS Healthcare Corp., Synthetic Letter of Credit ... Ba2 B+ 2.26% 03/15/14 179,914
2,047,882 IASIS Healthcare Corp.,Term Loan ..................... Ba2 B+ 2.26% 03/15/14 1,930,128
-----------
2,777,973
-----------
MULTI-UTILITIES - 1.5%
2,000,000 KGEN, LLC, SyntheticLetter of Credit ................. B1 BB 2.38% 02/08/14 1,830,000
-----------
OIL & GAS EQUIPMENT & SERVICES - 1.3%
583,416 Targa Resources, Inc., Synthetic Letter of Credit .... Ba3 B+ 2.60% 10/31/12 571,504
1,003,329 Targa Resources, Inc., Term Loan ..................... Ba3 B+ 2.26%-2.60% 10/31/12 982,844
-----------
1,554,348
-----------
OIL & GAS EXPLORATION & PRODUCTION - 1.2%
2,205,936 SemCrude, L.P., Term Loan (i) (j) .................... NR NR 5.75% 03/16/11 1,415,477
-----------
OIL & GAS STORAGE & TRANSPORTATION - 0.8%
1,000,000 Energy Transfer Equity, L.P., Term Loan B ............ Ba2 NR 2.21% 11/01/12 968,571
-----------
WIRELESS TELECOMMUNICATION SERVICES - 0.9%
1,065,595 Windstream Corp., Term Loan B1 ....................... Baa3 BBB 1.78%-2.02% 07/17/13 1,030,963
-----------
TOTAL SENIOR FLOATING-RATE LOAN INTERESTS .......................................................... 30,852,907
-----------
(Cost $33,406,670)
Page 4 See Notes to Quarterly Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (A) (B) - (CONTINUED)
AUGUST 31, 2009 (UNAUDITED)
TOTAL INVESTMENTS - 124.8% ...................................................................... $ 148,373,248
-------------
(Cost $160,629,889) (k)
OUTSTANDING LOAN - (26.0)% ...................................................................... (30,900,000)
NET OTHER ASSETS AND LIABILITIES - 1.2% ......................................................... 1,407,162
-------------
NET ASSETS - 100.0% ............................................................................. $ 118,880,410
=============
-----------------------------
(a) All percentages shown in the Portfolio of Investments are based on
net assets.
(b) All or a portion of the securities are available to serve as
collateral on the outstanding loan.
(c) This security is restricted and cannot be offered for public sale w
ithout first being registered under the Securities Act of 1933, as
amended. Prior to registration, restricted securities may only be
resold in transactions exempt from registration. (See Note 1E -
Restricted Securities in the Notes to Quarterly Portfolio of
Investments.)
(d) Ratings below Baa3 by Moody's Investors Service, Inc. or BBB- by
Standard & Poor's Ratings Group are considered to be below investment
grade.
(e) Senior Loans generally are subject to mandatory and/or optional
prepayment. As a result, the actual remaining maturity of Senior
Loans may be substantially less than the stated maturities shown.
(f) Senior Loans in which the Fund invests generally pay interest at
rates which are periodically predetermined by reference to a base
lending rate plus a premium. These base lending rates are generally
(i) the lending rate offered by one or more major European banks,
such as the London Inter-Bank Offered Rate ("LIBOR"), (ii) the prime
rate offered by one or more major United States banks or (iii) the
certificate of deposit rate.
(g) This Senior Loan Interest was privately-rated upon issuance. The
rating agency does not provide ongoing surveillance on the rating.
(h) This investment is a Senior Secured Payment-in-Kind Election Note
subject to a ratings-based pricing grid whereby at current ratings,
L+7.75% of interest per annum is to be paid in cash and 1.50% of
interest per annum is to be paid by the issuer at its option (i)
entirely in cash, or (ii) by capitalizing the amount of such interest
(i.e., by adding the amount thereof on such date to the then unpaid
principal amount of such loans). Interest is to be paid quarterly.
Additionally, the loan is subject to a LIBOR floor of 3.25%, bringing
the total coupon to 11%. NOTE: PIK interest increased from 1% to 1.5%
as of 7/1/09.
(i) This borrower has filed for protection in federal bankruptcy court.
(j) Non-income producing security.
(k) Aggregate cost for financial reporting purposes, which approximates
the aggregate cost for federal income tax purposes. As of August 31,
2009, the aggregate gross unrealized appreciation for all securities
in which there was an excess of value over tax cost was $8,788,076
and the aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over value was $21,044,717.
NR Not Rated
See Notes to Quarterly Portfolio of Investments Page 5
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (A) (B) - (CONTINUED)
AUGUST 31, 2009 (UNAUDITED)
VALUATION INPUTS
A summary of inputs used to value the Fund's investments as of August 31, 2009
is as follows (see Note 1A- Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):
LEVEL 2 LEVEL 3
TOTAL MARKET LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
VALUATION INPUTS 08/31/2009 PRICES INPUTS INPUTS
----------------------------------------- -------------- ------------- -------------- ------------
Common Stocks* .............................. $ 99,281,750 $ 99,281,750 $ -- $ --
Master Limited Partnerships* ................ 7,847,323 7,847,323 -- --
Canadian Income Trusts* ..................... 10,391,268 10,391,268 -- --
Senior Floating-Rate Loan Interests* ........ 30,852,907 -- 30,852,907 --
-------------- ------------- -------------- ------------
Total Investments ........................... $ 148,373,248 $ 117,520,341 $ 30,852,907 $ --
============== ============= ============== ============
*See Portfolio of Investments for country breakout.
% OF TOTAL
INDUSTRY CLASSIFICATION(1) INVESTMENTS
Electric Utilities 24.6%
Transportation Infrastructure 18.6
Gas Utilities 16.5
Water Utilities 7.1
Multi-Utilities 6.0
Power Generation 2.6
Energy Equipment & Services 1.5
Diversified Consumer Services 1.2
Construction & Engineering 1.1
------------------------------------------------
Total 79.2%
======
(1) Represents the industry classification breakdown for the Core
Component of the Fund's portfolio, which includes Common Stocks,
Master Limited Partnerships and Canadian Income Trust securities. It
excludes the Senior Loan Component of the Fund's portfolio, which
industry classification is disclosed in Portfolio of Investments and
makes up the remaining 20.8% of the Fund's portfolio.
Page 6 See Notes to Quarterly Portfolio of Investments
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NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
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MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
AUGUST 31, 2009 (UNAUDITED)
1. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of Macquarie/First Trust Global
Infrastructure/Utilities Dividend & Income Fund (the "Fund") is determined daily
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 per
Common Share is calculated by dividing the value of all assets of the Fund
(including accrued interest and dividends), less all liabilities (including
accrued expenses, dividends declared but unpaid and any borrowings of the Fund)
by the total number of Common 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 Fund's 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, the Fund's Board of Trustees has designated
First Trust Advisors L.P. ("First Trust") to use a fair value method to value
the Fund's securities and other investments. Additionally, if events occur after
the close of the principal markets for particular securities (e.g., domestic
debt and foreign securities), but before the Fund values its assets, that could
materially affect NAV, First Trust may use a fair value method to value the
Fund's securities and other investments. The use of fair value pricing by the
Fund is governed by valuation procedures adopted by the Fund's Board of
Trustees, and in accordance with the provisions of the Investment Company Act of
1940, as amended (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 always be reflected
in the computation of the value of such securities. If events materially
affecting the value of such securities occur during such period, these
securities will be valued at their fair value according to valuation procedures
adopted 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.
The Senior Floating-Rate Loans ("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 grown substantially 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 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 according to valuation procedures
adopted by the Fund's Board of Trustees, and in accordance with the provisions
of the 1940 Act.
Portfolio securities listed on any exchange, other than the NASDAQ National
Market ("NASDAQ"), are valued at the last sale price on the business day as 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 ask prices on such
day. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing
Price as determined by NASDAQ. Portfolio securities traded on more than one
securities exchange are valued at the last sale price on the business day as of
which such value is being determined at the close of the exchange representing
the principal market for such securities. 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 less
than 60 days when purchased are valued at amortized cost.
See Notes to Quarterly Portfolio of Investments Page 7
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NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
--------------------------------------------------------------------------------
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
AUGUST 31, 2009 (UNAUDITED)
In September 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 157, "Fair Value Measurements"
("FAS 157"), effective for fiscal years beginning after November 15, 2007. This
standard clarifies the definition of fair value for financial reporting,
establishes a framework for measuring fair value and requires additional
disclosures about the use of fair value measurements. The three levels of the
fair value hierarchy under FAS 157 are described below:
o Level 1 - quoted prices in active markets for identical securities
o Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risk, etc.)
o Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
In April 2009, FASB issued FASB Staff Position No. 157-4, "Determining Fair
Value when the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not Orderly" ("FSP
157-4"). FSP 157-4 is effective for fiscal years and interim periods ending
after June 15, 2009. FSP 157-4 provides additional guidance for estimating fair
value in accordance with FAS 157, when the volume and level of activity for the
asset or liability have significantly decreased. FSP 157-4 also includes
guidance on identifying circumstances that indicate a transaction is not
orderly. FSP 157-4 requires entities to describe the inputs used in valuation
techniques used to measure fair value and changes in inputs over the period. FSP
157-4 expands the three-tiered hierarchy disclosure and the Level 3 roll-forward
disclosure for each major security type.
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. A summary
of the inputs used to value the Fund's investments as of August 31, 2009 is
included with the Fund's Portfolio of Investments.
B. REPURCHASE AGREEMENTS:
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 obligation,
including interest. In the event of counterparty default, the Fund has the right
to use the collateral to offset losses incurred. There is a 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 risk of 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. At August 31, 2009,
there were no outstanding repurchase agreements.
C. 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.
Distributions received from the Fund's investments in Master Limited
Partnerships ("MLPs") generally are comprised of return of capital from the MLP
to the extent of the cost basis of such MLP investments.
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 on such securities
is not accrued until settlement date. The Fund maintains liquid assets with a
current value at least equal to the amount of its when-issued or
delayed-delivery purchase commitments. At August 31, 2009, the Fund had no
when-issued or delayed-delivery purchase commitments.
D. UNFUNDED LOAN COMMITMENTS:
The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. As of August 31, 2009, the Fund had no unfunded loan commitments.
Page 8 See Notes to Quarterly Portfolio of Investments
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NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
--------------------------------------------------------------------------------
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
AUGUST 31, 2009 (UNAUDITED)
E. RESTRICTED SECURITIES:
The Fund invests in restricted securities, which are securities that cannot be
offered for public sale without first being registered under the Securities Act
of 1933, as amended. Prior to registration, restricted securities may only be
resold in transactions exempt from registration. The Fund held restricted
securities at August 31, 2009 as shown in the following table. The Fund does not
have the right to demand that such securities be registered. These securities
are valued according to the valuation procedures as stated in the Portfolio
Valuation footnote (Note 1A) and are not expressed as a discount to the carrying
value of a comparable unrestricted security. There are no unrestricted
securities with the same maturity date and yield for this issuer.
ACQUISITION VALUE CURRENT % OF
SECURITY DATE SHARES PER SHARE CARRYING COST VALUE NET ASSETS
---------------------------------------------------------------------------------------------------------------------
Pembina Pipeline Income Fund 4/30/09 9,300 $14.12 $ 101,759 $ 131,334 0.11%
========== ========== =====
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 have materially affected, or are 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, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 21, 2009
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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, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 21, 2009
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By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller,
Chief Financial Officer and Chief Accounting Officer
(principal financial officer)
Date OCTOBER 21, 2009
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* Print the name and title of each signing officer under his or her signature.