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
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Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
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(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(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
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-765-8000
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Date of fiscal year end: November 30
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Date of reporting period: August 31, 2016
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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
(MFD)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2016 (UNAUDITED)
SHARES DESCRIPTION VALUE
--------------- ----------------------------------------------------------------------- --------------
COMMON STOCKS (a) - 76.0%
AUSTRALIA - 8.5%
253,760 APA Group (b).......................................................... $ 1,762,196
1,391,115 DUET Group (b)......................................................... 2,749,652
1,300,000 Spark Infrastructure Group............................................. 2,481,625
362,776 Transurban Group (b)................................................... 3,124,512
--------------
10,117,985
--------------
BRAZIL - 1.6%
256,100 Transmissora Alianca de Energia Eletrica S.A........................... 1,830,419
--------------
CANADA - 20.0%
115,999 Enbridge, Inc. (b)..................................................... 4,574,858
160,100 Inter Pipeline, Ltd. (b)............................................... 3,481,815
90,071 Northland Power, Inc. (b).............................................. 1,631,910
82,439 Pembina Pipeline Corp. (b)............................................. 2,480,588
145,000 TransCanada Corp. (b).................................................. 6,575,530
502,100 Veresen, Inc. (b)...................................................... 4,946,722
--------------
23,691,423
--------------
CAYMAN ISLANDS - 5.8%
11,734,500 Hopewell Highway Infrastructure, Ltd. (b).............................. 6,837,202
--------------
FRANCE - 5.8%
209,194 Engie S.A. (b)......................................................... 3,334,504
320,186 Groupe Eurotunnel SE (b)............................................... 3,521,510
--------------
6,856,014
--------------
GERMANY - 1.9%
140,783 Hamburger Hafen Und Logistik AG (b).................................... 2,263,678
--------------
HONG KONG - 2.4%
991,593 China Merchants Holdings International Co., Ltd. (b)................... 2,824,887
--------------
ITALY - 4.9%
940,000 Enav S.p.A. (b) (c) (d)................................................ 3,900,502
334,935 Snam S.p.A. (b)........................................................ 1,856,806
--------------
5,757,308
--------------
MEXICO - 1.3%
404,400 Infraestructura Energetica Nova S.A.B. de C.V. (b)..................... 1,560,905
--------------
SINGAPORE - 2.3%
6,408,100 Hutchison Port Holdings Trust (b)...................................... 2,755,483
--------------
SPAIN - 7.1%
265,139 Abertis Infraestructuras S.A. (b)...................................... 4,106,475
139,773 Enagas S.A. (b)........................................................ 4,104,322
32,978 Iberdrola S.A. (b)..................................................... 217,033
--------------
8,427,830
--------------
UNITED KINGDOM - 8.6%
576,390 National Grid PLC (b).................................................. 7,920,793
See Notes to Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
(MFD)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2016 (UNAUDITED)
SHARES/
UNITS DESCRIPTION VALUE
--------------- ----------------------------------------------------------------------- --------------
COMMON STOCKS (a) (CONTINUED)
UNITED KINGDOM (CONTINUED)
198,662 Pennon Group PLC (b)................................................... $ 2,289,153
--------------
10,209,946
--------------
UNITED STATES - 5.8%
47,000 Sempra Energy (b)...................................................... 4,917,610
25,800 Spectra Energy Corp. (b)............................................... 918,996
38,000 Williams (The) Cos., Inc. (b).......................................... 1,061,720
--------------
6,898,326
--------------
TOTAL COMMON STOCKS.................................................... 90,031,406
(Cost $87,702,485) --------------
MASTER LIMITED PARTNERSHIPS (a) - 16.9%
UNITED STATES - 16.9%
100,700 Buckeye Partners, L.P. (b)............................................. 7,075,182
100,900 Enbridge Energy Partners, L.P. (b)..................................... 2,346,934
286,154 Enterprise Products Partners, L.P. (b)................................. 7,554,466
42,800 Magellan Midstream Partners, L.P. (b).................................. 3,010,124
--------------
TOTAL MASTER LIMITED PARTNERSHIPS...................................... 19,986,706
(Cost $17,628,035) --------------
PRINCIPAL STATED
VALUE DESCRIPTION RATE (e) MATURITY (f) VALUE
--------------- -------------------------------------------- --------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS - 38.5%
CAYMAN ISLANDS - 1.6%
$ 1,045,000 Sable International Finance Ltd., Term B-1
Loan .................................... 5.50% 12/02/22 1,050,664
855,000 Sable International Finance Ltd., Term B-2
Loan .................................... 5.83% 12/02/22 859,634
--------------
1,910,298
--------------
FRANCE - 1.7%
997,494 Numericable US LLC, USD Term Loan B-6 ...... 4.75% 01/31/23 999,987
997,500 Numericable US LLC, USD Term Loan B-7 ...... 5.00% 01/15/24 1,002,737
--------------
2,002,724
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UNITED STATES - 35.2%
2,294,365 Altice US Finance I Corp., Initial Term Loan 4.25% 12/14/22 2,302,969
1,994,962 Calpine Corp., Term Loan (05/15) ........... 3.50% 05/22/22 1,995,521
348,250 Calpine Corp., Term Loan (12/15) ........... 4.00% 01/15/23 349,918
489,861 Charter Communications Operating LLC,
Term E Loan ............................. 3.00% 07/01/20 490,610
2,992,500 Charter Communications Operating LLC,
Term H Loan ............................. 3.25% 08/24/21 3,001,238
1,995,000 Charter Communications Operating LLC,
Term I Loan ............................. 3.50% 01/24/23 2,004,975
500,320 CHS/Community Health Systems, Inc.,
Incremental 2018 Term F Loan ............ 4.08% 12/31/18 492,710
See Notes to Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
(MFD)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2016 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (e) MATURITY (f) VALUE
--------------- -------------------------------------------- --------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
UNITED STATES (CONTINUED)
$ 1,008,417 CHS/Community Health Systems, Inc.,
Incremental 2019 Term G Loan ............ 3.75% 12/31/19 $ 968,080
599,013 CHS/Community Health Systems, Inc.,
Incremental 2021 Term H Loan ............ 4.00% 01/27/21 573,981
3,476,240 Communications Sales & Leasing, Inc., Term
Loan .................................... 5.00% 10/24/22 3,476,240
1,995,000 CSC Holdings, Inc. (Neptune Finco Corp.),
Initial Term Loan........................ 5.00% 10/09/22 2,010,382
1,000,000 Dayton Power & Light (The) Co., First Lien
Term Loan B.............................. 4.00% 08/18/22 1,006,880
1,400,000 Dynegy Finance IV, Inc., Term Loan ......... 5.00% 06/27/23 1,400,224
1,124,000 Green Energy Partners/Stonewall LLC, Term
B-1 Conversion Advance................... 6.50% 11/13/21 1,059,370
997,500 HCA, Inc., Tranche B-6 Term Loan ........... 3.77% 03/17/23 1,008,971
2,683,490 IASIS Healthcare LLC, Term B-2 Loan ........ 4.50% 05/03/18 2,650,913
2,880,000 Level 3 Financing, Inc., Tranche B 2020
Term Loan................................ 4.00% 01/15/20 2,894,400
1,200,000 NRG Energy, Inc., Term Loan ................ 3.50% 06/14/23 1,198,308
996,439 Panda Liberty LLC, Construction B-1
Facility................................. 7.50% 08/21/20 972,774
997,494 T-Mobile USA, Inc., Senior Lien Term Loan .. 3.50% 11/09/22 1,003,888
1,650,000 Telenet Financing USD LLC, Term Loan AD .... 4.25% 06/30/24 1,654,719
3,000,000 UPC Financing Partnership, Facility AN ..... 4.08% 07/25/24 2,989,230
2,770,878 Wide Open West Finance LLC, Term B Loan .... 4.50% 08/12/23 2,757,024
1,797,500 Windstream Services LLC, Tranche B-6
Term Loan ............................... 5.75% 03/29/21 1,808,177
1,532,296 Zayo Group LLC, 2016 Incremental Term
Loan .................................... 4.50% 05/06/21 1,530,380
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41,601,882
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TOTAL SENIOR FLOATING-RATE LOAN INTERESTS.............................. 45,514,904
(Cost $45,483,951) --------------
TOTAL INVESTMENTS - 131.4%............................................. 155,533,016
(Cost $150,814,471) (g)
OUTSTANDING LOANS - (39.3%)............................................ (46,500,000)
NET OTHER ASSETS AND LIABILITIES - 7.9%................................ 9,374,104
--------------
NET ASSETS - 100.0%.................................................... $ 118,407,120
==============
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(a) Portfolio securities are categorized based on their country of
incorporation.
(b) All or a portion of this security serves as collateral on the outstanding
loan.
(c) Non-income producing security.
(d) This security is restricted in the U.S. and cannot be offered for public
sale without first being registered under the Securities Act of 1933, as
amended. This security is not restricted on the foreign exchange where it
trades freely without any additional registration. As such it does not
require the additional disclosure required of restricted securities.
See Notes to Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
(MFD)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2016 (UNAUDITED)
(e) Senior Floating-Rate Loan Interests ("Senior Loans") in which the Fund
invests 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 United States banks or (iii) the
certificate of deposit rate. Certain Senior Loans are subject to a LIBOR
floor that establishes a minimum LIBOR rate. The interest rate shown
reflects the rate in effect at August 31, 2016. When a range of rates is
disclosed, the Fund holds more than one contract within the same tranche
at varying rates.
(f) 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.
(g) Aggregate cost for financial reporting purposes, which approximates the
aggregate cost for federal income tax purposes. As of August 31, 2016, the
aggregate gross unrealized appreciation for all securities in which there
was an excess of value over tax cost was $9,706,595 and the aggregate
gross unrealized depreciation for all securities in which there was an
excess of tax cost over value was $4,988,050.
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2016 is as follows (see Note 2A - Portfolio Valuation in the Notes to Portfolio
of Investments):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2016 PRICES INPUTS INPUTS
-------------- -------------- ------------ -------------
Common Stocks*................................ $ 90,031,406 $ 90,031,406 $ -- $ --
Master Limited Partnerships*.................. 19,986,706 19,986,706 -- --
Senior Floating-Rate Loan Interests*.......... 45,514,904 -- 44,542,130 972,774
-------------- -------------- ------------ -------------
Total Investments............................. $ 155,533,016 $ 110,018,112 $ 44,542,130 $ 972,774
============== ============== ============ =============
*See Portfolio of Investments for country breakout.
All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. There were no
transfers between Levels at August 31, 2016.
Level 3 Senior Floating-Rate Loan Interests are valued by the Advisor's Pricing
Committee. Level 3 Senior Floating-Rate Loan Interests are valued based on
third-party pricing service prices obtained from dealer runs and indicative
sheets from brokers. These values are based on unobservable and non-quantitative
inputs. The Fund's Board of Trustees has adopted valuation procedures that are
utilized by the Advisor's Pricing Committee to oversee the day-to-day valuation
of the Fund's investments. The Advisor's Pricing Committee, through the Fund's
fund accounting agent, monitors daily pricing via tolerance checks and stale and
unchanged price reviews. The Advisor's Pricing Committee also reviews monthly
back testing of pricing service prices by comparing sales prices of the Fund's
investments to prior day pricing service prices. Additionally, the Advisor's
Pricing Committee reviews periodic information from the Fund's third-party
pricing service that compares secondary market trade prices to their daily
valuations.
The following table presents the activity of the Fund's investments measured at
fair value on a recurring basis using significant unobservable inputs (Level 3)
for the period presented.
See Notes to Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
(MFD)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2016 (UNAUDITED)
BEGINNING BALANCE AT NOVEMBER 30, 2015
Common Stocks $ -- *
Senior Floating-Rate Loan Interests 945,000
Net Realized Gain (Loss) --
Net Change in Unrealized Appreciation/Depreciation:
Senior Floating-Rate Loan Interests 27,774
Purchases --
Sales:
Common Stocks -- *
Transfers In --
Transfers Out --
ENDING BALANCE AT AUGUST 31, 2016
-----------
Common Stocks --
Senior Floating-Rate Loan Interests 972,774
-----------
Total Level 3 holdings $ 972,774
===========
*Valued at $0.
There was a net change of $27,774 in unrealized appreciation (depreciation) from
Level 3 investments held as of August 31, 2016.
See Notes to Portfolio of Investments
NOTES TO PORTFOLIO OF INVESTMENTS
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
(MFD)
AUGUST 31, 2016 (UNAUDITED)
1. ORGANIZATION
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
(the "Fund") is a non-diversified, closed-end management investment company
organized as a Massachusetts business trust on January 21, 2004 and is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940, as amended (the "1940 Act"). The Fund trades under the
ticker symbol MFD on the New York Stock Exchange ("NYSE").
The Fund, which is an investment company within the scope of Financial
Accounting Standards Board ("FASB") Accounting Standards Update 2013-08, follows
accounting and reporting guidance under FASB Accounting Standards Codification
Topic 946, "Financial Services-Investment Companies."
2. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION
The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time,
on each day the NYSE is open for trading. If the NYSE closes early on a
valuation day, the NAV is determined as of that time. Domestic debt securities
and foreign securities are priced using data reflecting the earlier closing of
the principal markets for those securities. The Fund's 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. Market
value prices represent last sale or official closing prices from a national or
foreign exchange (i.e., a regulated market) and are primarily obtained from
third-party pricing services. Fair value prices represent any prices not
considered market value prices and are either obtained from a third-party
pricing service or are determined by the Pricing Committee of the Fund's
investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"),
in accordance with valuation procedures adopted by the Fund's Board of Trustees,
and in accordance with provisions of the 1940 Act. Investments valued by the
Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to
the Portfolio of Investments. The Fund's investments are valued as follows:
Common stocks, master limited partnerships ("MLPs") and other equity
securities listed on any national or foreign exchange (excluding The
Nasdaq Stock Market LLC ("Nasdaq") and the London Stock Exchange
Alternative Investment Market ("AIM")) are valued at the last sale price
on the exchange on which they are principally traded or, for Nasdaq and
AIM securities, the official closing price. Securities traded on more than
one securities exchange are valued at the last sale price or official
closing price, as applicable, at the close of the securities exchange
representing the principal market for such securities.
Securities traded in an over-the-counter market are fair valued at the
mean of their most recent bid and asked price, if available, and otherwise
at their closing bid price.
Fixed income and other debt securities having a remaining maturity of 60
days or less when purchased are fair valued at cost adjusted for
amortization of premiums and accretion of discounts (amortized cost),
provided the Advisor's Pricing Committee has determined that the use of
amortized cost is an appropriate reflection of fair value given market and
issuer-specific conditions existing at the time of the determination.
Factors that may be considered in determining the appropriateness of the
use of amortized cost include, but are not limited to, the following:
1) the credit conditions in the relevant market and changes thereto;
2) the liquidity conditions in the relevant market and changes thereto;
3) the interest rate conditions in the relevant market and changes
thereto (such as significant changes in interest rates);
4) issuer-specific conditions (such as significant credit
deterioration); and
5) any other market-based data the Advisor's Pricing Committee
considers relevant. In this regard, the Advisor's Pricing Committee
may use last-obtained market-based data to assist it when valuing
portfolio securities using amortized cost.
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Fund's Board of Trustees or its
delegate, the Advisor's Pricing Committee, at fair value. These securities
generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of
1933, as amended) for which a pricing service is unable to provide a market
price; securities whose trading has been formally suspended; a security whose
market or fair value price is not available from a pre-established pricing
source; a security with respect to which an event has occurred that is likely to
materially affect the value of the security after the market has closed but
before the calculation of the Fund's NAV or make it difficult or impossible to
obtain a reliable market quotation; and a security whose price, as provided by
the pricing service, does not reflect the security's fair value. As a general
principle, the current fair value of a security would appear to be the amount
which the owner might reasonably expect to receive for the security upon its
current sale. When fair value prices are used, generally they will differ from
market quotations or official closing prices on the applicable exchanges. A
variety of factors may be considered in determining the fair value of such
securities, including, but not limited to, the following:
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
(MFD)
AUGUST 31, 2016 (UNAUDITED)
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
If the securities in question are foreign securities, the following additional
information may be considered:
1) the value of similar foreign securities traded on other foreign
markets;
2) ADR trading of similar securities;
3) closed-end fund trading of similar securities;
4) foreign currency exchange activity;
5) the trading prices of financial products that are tied to baskets of
foreign securities;
6) factors relating to the event that precipitated the pricing problem;
7) whether the event is likely to recur; and
8) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.
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 affecting the
value of such securities occur during such period, these securities will be
valued at their fair value according to procedures adopted by the Fund's Board
of Trustees (see above). For certain foreign equity securities, a third-party
pricing service may be utilized to determine fair value. 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 Loan interests ("Senior Loans")(1) 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 since its inception,
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 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 fair valued using information provided by a third-party pricing
service. The third-party pricing service primarily uses over-the-counter pricing
from dealer runs and broker quotes from indicative sheets to value the Senior
Loans. If the pricing service cannot or does not provide a valuation for a
particular Senior Loan or such valuation is deemed unreliable, the Advisor's
Pricing Committee may value such Senior Loan at a fair value according to
procedures adopted by the Fund's Board of Trustees, and in accordance with the
provisions of the 1940 Act. Fair valuation of a Senior Loan is based on the
consideration of all available information, including, but not limited to the
following:
1) the fundamental business data relating to the issuer or borrower;
2) an evaluation of the forces which influence the market in which
these securities are purchased and sold;
3) the type, size and cost of the security;
4) the financial statements of the borrower;
5) the credit quality and cash flow of the issuer, based on the
sub-advisor's or external analysis;
6) the information as to any transactions in or offers for the
security;
7) the price and extent of public trading in similar securities (or
equity securities) of the issuer/borrower, or comparable companies;
8) the coupon payments;
9) the quality, value and salability of collateral, if any, securing
the security;
10) the business prospects of the issuer/borrower, including any ability
to obtain money or resources from a parent or affiliate and an
assessment of the borrower's management;
11) the prospects for the borrower's industry, and multiples (of
earnings and/or cash flows) being paid for similar businesses in
that industry;
(1) The terms "security" and "securities" used throughout the Notes to
Portfolio of Investments include Senior Loans.
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
(MFD)
AUGUST 31, 2016 (UNAUDITED)
12) borrower's competitive position within the industry;
13) borrower's ability to access additional liquidity through public
and/or private markets; and
14) other relevant factors.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodologies used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of August 31, 2016, is
included with the Fund's Portfolio of Investments.
B. 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, delayed-delivery or forward
purchase commitment basis may have extended settlement periods. The value of the
security so purchased is subject to market fluctuations during this period. Due
to the nature of the Senior Loan market, the actual settlement date may not be
certain at the time of purchase or sale for some of the Senior Loans. Interest
income on such Senior Loans 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, delayed-delivery or forward purchase commitments. At August 31,
2016, the Fund had no when-issued, delayed-delivery or forward purchase
commitments.
C. 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. The Fund did not have any unfunded delayed draw loan
commitments as of August 31, 2016.
D. FOREIGN CURRENCY
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investments and items of income and expense are
translated on the respective dates of such transactions.
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 M. Dykas
----------------------------------------
James M. Dykas
President and Chief Executive Officer
(principal executive officer)
Date: October 20, 2016
------------------
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 M. Dykas
----------------------------------------
James M. Dykas
President and Chief Executive Officer
(principal executive officer)
Date: October 20, 2016
------------------
By (Signature and Title)* /s/ Donald P. Swade
----------------------------------------
Donald P. Swade
Treasurer, Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: October 20, 2016
------------------
*Print the name and title of each signing officer under his or her signature.