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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 811-4915
DNP Select Income Fund Inc.
--------------------------------------------------
(Exact name of registrant as specified in charter)
55 East Monroe Street, Chicago, Illinois 60603
------------------------------------------ -----------
(Address of principal executive offices) (Zip code)
Nathan I. Partain John R. Sagan
DNP Select Income Fund Inc. Mayer, Brown, Rowe & Maw LLP
55 East Monroe Street 190 South LaSalle Street
Chicago, Illinois 60603 Chicago, Illinois 60603
(Name and address of agents for service)
Registrant's telephone number, including area code: (312) 368-5510
Date of fiscal year end: December 31
Date of reporting period: September 30, 2004
Form N-Q is to be used by management investment companies, other than
small business investment companies registered on Form N-5 (Sections 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 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. Section 3507.
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ITEM 1. SCHEDULE OF INVESTMENTS.
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS
(UNAUDITED)
September 30, 2004
COMMON STOCKS--85.9%
Market
Value
Shares Company (Note 1)
--------- ------- ---------------
[_] ELECTRIC--50.5%
1,501,000 Ameren Corp.................................... $ 69,271,150
800,000 Cinergy Corp................................... 31,680,000
796,000 Dominion Resources Inc......................... 51,939,000
1,000,000 DTE Energy Co.................................. 42,190,000
352,770 Duke Energy Corp............................... 8,074,905
1,100,000 Energy East Corp............................... 27,698,000
2,000,000 Exelon Corp.................................... 73,380,000
2,000,000 FirstEnergy Corp............................... 82,160,000
579,400 FPL Group Inc.................................. 39,584,608
1,080,000 Iberdrola S.A. (Spain)......................... 22,400,711
215,000 National Grid Transco PLC ADR.................. 9,208,450
770,000 National Grid Transco PLC (United Kingdom)..... 6,496,506
1,200,000 NiSource, Inc.................................. 25,212,000
1,318,600 NSTAR.......................................... 64,743,260
690,000 Pinnacle West Capital Corp..................... 28,635,000
1,375,000 Progress Energy Inc............................ 58,217,500
1,000,000 Public Service Enterprise Group Inc............ 42,600,000
1,000,000 Scottish & Southern Energy ADR................. 14,096,500
850,000 Scottish & Southern Energy PLC (United Kingdom) 11,974,236
368,700 Scottish Power PLC ADR......................... 11,370,708
2,300,000 Southern Co.................................... 68,954,000
1,500,000 Vectren Corp................................... 37,770,000
581,000 WPS Resources Corp............................. 26,139,190
2,999,304 Xcel Energy Inc................................ 51,947,945
---------------
905,743,669
[_] GAS--7.5%
926,000 AGL Resources Inc.............................. 28,493,020
1,000,000 Keyspan Corp................................... 39,200,000
900,000 Peoples Energy Corp............................ 37,512,000
1,000,000 WGL Holdings Inc............................... 28,260,000
---------------
133,465,020
The accompanying note is an integral part of this financial statement.
3
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Value
Shares Company (Note 1)
--------- ------- ---------------
[_] TELECOMMUNICATION--16.3%
1,600,000 BCE Inc............................. $ 34,640,000
565,000 BT Group PLC ADR.................... 18,616,750
1,730,000 BellSouth Corp...................... 46,917,600
1,250,000 Chunghwa Telecom Co. Ltd............ 22,012,500
1,620,000 Citizens Communications Co.......... 21,691,800
1,642,230 SBC Communications, Inc............. 42,615,868
856,250 Telecom Corp of New Zealand Ltd. ADR 27,237,313
1,068,400 Telstra Corp. Ltd. ADR.............. 18,088,012
1,519,000 Verizon Communications Inc.......... 59,818,220
---------------
291,638,063
[_] NON-UTILITY--11.6%
51,194 Alexandria Real Estate Equities Inc. 3,364,470
64,478 AMB Property Corp................... 2,386,975
251,692 Archstone Smith Trust............... 7,963,535
66,534 Arden Realty Inc.................... 2,167,678
218,408 Boston Properties Inc............... 12,097,619
77,653 Camden Property Trust............... 3,587,569
78,453 CBL & Associates Properties Inc..... 4,781,710
327,320 CenterPoint Properties Trust........ 14,264,606
208,999 Corporate Office Properties Trust... 5,354,554
229,309 Developers Diversified Realty Corp.. 8,977,447
145,828 Duke Realty Corp.................... 4,841,490
72,914 Equity Office Properties Trust...... 1,986,907
248,610 Equity Residential.................. 7,706,910
53,774 Essex Property Trust Inc............ 3,863,662
45,000 Extra Space Storage Inc............. 573,750
334,291 General Growth Properties Inc....... 10,363,021
84,130 Health Care Property Investors Inc.. 2,187,380
63,800 Health Care REIT Inc................ 2,245,760
53,526 Healthcare Realty Trust Inc......... 2,089,655
72,914 Home Properties Inc................. 2,884,478
69,268 Hospitality Properties Trust........ 2,943,197
The accompanying note is an integral part of this financial statement.
4
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Value
Shares Company (Note 1)
--------- ------- ---------------
99,193 iStar Financial Inc....................... $ 4,089,727
78,994 Kilroy Realty Corp........................ 3,004,142
67,968 Kimco Realty Corp......................... 3,486,758
72,720 LaSalle Hotel Properties.................. 2,007,072
139,226 The Macerich Co........................... 7,419,354
116,597 Pan Pacific Retail Properties Inc......... 6,307,898
265,662 ProLogis.................................. 9,361,929
78,538 Public Storage, Inc....................... 3,891,558
45,571 Realty Income Corp........................ 2,052,062
84,355 Reckson Associates Realty Corp............ 2,425,206
67,231 Regency Centers Corp...................... 3,125,569
55,140 Shurgard Storage Centers Inc. Class A..... 2,139,432
259,811 Simon Property Group Inc.................. 13,933,664
187,571 S.L. Green Realty Corp.................... 9,718,053
97,070 Starwood Hotels & Resorts Worldwide, Inc.. 4,505,989
127,119 United Dominion Realty Trust Inc.......... 2,520,770
229,679 Vornado Realty Trust...................... 14,396,280
183,350 Weingarten Realty Investors............... 6,052,384
---------------
207,070,220
---------------
Total Common Stocks (Cost--$1,405,830,973) 1,537,916,972
---------------
PREFERRED STOCKS--18.8%
[_] UTILITY--18.8%
200,000 Alltel Corp.
7 3/4% due 5/17/05........................ 10,352,000
750,000 Ameren Corp.
9 3/4% due 5/15/05........................ 20,595,000
1,200,000 Centurytel Inc.
6 7/8% due 5/15/05........................ 31,704,000
626,200 Cinergy Corp.
9 1/2% due 2/16/05........................ 38,235,772
450,000 Dominion Resources Inc.
9 1/2% due 11/16/04....................... 25,506,195
The accompanying note is an integral part of this financial statement.
5
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Value
Shares Company (Note 1)
--------- ------- ---------------
986,700 DTE Energy Co.
8 3/4% due 8/16/05......................... $ 24,547,500
223,500 EIX Trust II Series B
8.60% due 10/29/29......................... 5,670,195
500,000 FPL Group Inc.
8 1/2% due 2/16/05......................... 28,450,000
1,200,000 Great Plains Energy Inc.
8% due 2/16/07............................. 30,132,000
412,000 Keyspan Corp.
8 3/4% due 5/16/05......................... 21,836,000
775,000 Oneok Inc.
8 1/2% due 2/16/06......................... 25,513,000
500,000 Sempra Energy
8 1/2% due 5/17/05......................... 15,480,000
172,700 Southern Union Co.
5 3/4% due 8/16/06......................... 11,057,981
400,000 TXU Corp.
8 3/4% due 11/16/05........................ 20,840,000
500,000 TXU Corp.
8 1/8% due 5/16/06......................... 25,955,000
---------------
Total Preferred Stocks (Cost--$306,441,093) 335,874,643
---------------
BONDS--31.2%
Ratings
--------------------------
Standard
and
Par Value Fitch Moody's Poor's
----------- - --------- ------- --------
[_] ELECTRIC--11.3%
$18,050,000 Comed Financing II
8 1/2%, due 1/15/27............. Not Rated Baa2 BBB 20,817,895
7,500,000 Commonwealth Edison Co.
9 7/8%, due 6/15/20............. A- A3 A- 8,005,740
24,000,000 Dominion Resources Capital Trust
7.83%, due 12/01/27............. Not Rated Baa2 BBB- 26,363,544
The accompanying note is an integral part of this financial statement.
6
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Ratings
--------------------------
Standard Market
and Value
Par Value Company Fitch Moody's Poor's (Note 1)
----------- ------- --------- ------- -------- ---------------
$ 5,000,000 El Paso Electric Co., Series E
9.40%, due 5/01/11............ Not Rated Baa2 BBB $ 5,616,895
5,000,000 Illinois Power Co.
7 1/2%, due 7/15/25........... CCC+ B1 B 5,150,000
15,825,000 Niagara Mohawk Power Corp.
8 7/8%, due 5/15/07........... Not Rated Baa3 A- 17,898,708
5,000,000 Progress Energy Inc.
7 3/4%, due 3/01/31........... BBB- Baa2 BBB- 5,929,550
9,000,000 PSEG Power LLC
8 5/8%, due 4/15/31........... BBB Baa1 BBB 11,559,726
22,750,000 Puget Capital Trust
8.231%, due 6/01/27........... Not Rated Ba1 BB 21,967,127
29,860,000 Southern California Edison Co.
8%, due 2/15/07............... BBB+ A3 BBB 33,069,682
13,000,000 Southern Co. Capital Trust II
8.14%, due 2/15/27............ Not Rated Baa1 BBB+ 14,926,405
11,750,000 Virginia Electric & Power Co.
8 5/8%, due 10/01/24.......... A- A2 A- 12,249,880
17,700,000 Virginia Electric & Power Co.
8 1/4%, due 3/01/25........... A- A2 A- 18,682,102
---------------
202,237,254
[_] GAS--4.4%
5,000,000 KN Energy Inc.
7 1/4%, due 3/01/28........... BBB Baa2 BBB 5,579,640
10,000,000 Northern Border Partners LP
8 7/8%, due 6/15/10........... BBB+ Baa2 BBB+ 11,984,440
15,000,000 Panhandle Eastern
8 5/8%, due 4/15/25........... BBB- Baa3 BBB- 15,893,310
6,488,000 Southern Union Co.
7.60%, due 2/01/24............ BBB Baa3 BBB 7,370,070
8,850,000 Southern Union Co.
8 1/4%, due 11/15/29.......... BBB Baa3 BBB 10,925,236
The accompanying note is an integral part of this financial statement.
7
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Ratings
--------------------------
Standard Market
and Value
Par Value Company Fitch Moody's Poor's (Note 1)
----------- ------- --------- ------- -------- ---------------
$10,000,000 TE Products Pipeline Co.
7.51%, due 1/15/28............... Not Rated Baa3 BBB $ 10,828,040
15,500,000 Trans-Canada Pipeline
9 1/8%, due 4/20/06.............. Not Rated A3 BBB+ 16,891,962
---------------
79,472,698
[_] TELECOMMUNICATION--8.5%
4,200,000 AT&T Wireless Services Inc.
7 1/2%, due 5/01/07.............. BBB Baa2 BBB 4,629,925
22,000,000 British Telecom PLC
8 3/8%, due 12/15/10............. A Baa1 A- 26,561,832
15,000,000 Centurytel Inc.
8 3/8%, due 10/15/10............. BBB+ Baa2 BBB+ 17,717,565
5,000,000 Centurytel Inc.
6 7/8%, due 1/15/28.............. BBB+ Baa2 BBB+ 5,182,315
5,645,000 Comcast Cable Communications Inc.
8 3/8%, due 5/01/07.............. BBB Baa3 BBB 6,309,580
10,000,000 France Telecom SA
7 3/4%, due 3/01/11.............. A- Baa2 BBB+ 11,986,010
17,625,000 GTE Corp.
7.90%, due 2/01/27............... A+ A3 A+ 19,353,537
5,000,000 GTE North Inc., Series C
7 5/8%, due 5/15/26.............. A+ A1 A+ 5,323,140
10,000,000 Sprint Capital Corp.
8 3/8%, due 3/05/12.............. BBB Baa3 BBB- 12,128,720
10,000,000 TCI Communications Inc.
8 3/4%, due 8/01/15.............. BBB Baa3 BBB 12,487,730
6,724,000 360 Communications Co.
7 1/2% due 3/01/06............... A A2 A 7,161,248
4,314,000 Tritel PCS Inc.
10 3/8%, due 1/15/11............. BBB Baa2 BBB 4,923,961
10,500,000 Verizon Global Funding Corp.
7 3/4%, due 12/01/30............. A+ A2 A+ 12,613,881
The accompanying note is an integral part of this financial statement.
8
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Ratings
----------------------------
Standard Market
and Value
Par Value Company Fitch Moody's Poor's (Note 1)
------------ ------- --------- --------- -------- ---------------
$ 5,000,000 Vodaphone Group PLC
7 7/8%, due 2/15/30........... A A2 A $ 6,332,335
---------------
152,711,779
[_] NON-UTILITY--7.0%
#25,000,000 Belford U.S. Capital Co. LLC
1.85%, due 3/08/05............ AAA Not Rated AAA 25,005,900
7,361,000 Continental Cablevision Inc.
9.50%, due 8/01/13............ Not Rated Baa3 BBB 8,062,577
#45,000,000 Countrywide Home Loans Inc.
1.67%, Series L, due 1/18/05.. A A3 A 45,000,135
8,000,000 Dayton Hudson Corp.
9 7/8%, due 7/01/20........... A A2 A+ 11,706,808
#15,000,000 Sigma Finance Inc.
1.98%, due 1/28/05............ AAA Aaa AAA 15,007,530
#20,000,000 Stanfield Victoria Funding LLC
1.955%, due 6/01/05........... Not Rated Aaa AAA 20,004,280
---------------
124,787,230
---------------
Total Bonds (Cost--$546,122,899)........................... 559,208,961
---------------
U.S. TREASURY OBLIGATION--0.1%
2,000,000 U.S. Treasury Bond
10 3/4%, due 8/15/05............................. 2,148,204
--------------
Total U.S. Treasury Obligation (Cost--$2,394,375) 2,148,204
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--9.3%
25,000,000 Federal Home Loan Mortgage Corp.
9%, due 11/15/13................................. 25,191,400
84,500,000 Federal National Mortgage Assn.
8 1/2%, due 5/26/05.............................. 85,307,060
The accompanying note is an integral part of this financial statement.
9
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Par Value/ Value
Shares Company (Note 1)
-------------- ------- ---------------
#$ 13,223,842 Overseas Private Investment Corp., Series A
1 1/2%, due 12/16/06......................................... $ 13,205,024
# 8,408,828 Overseas Private Investment Corp., Series B
1 1/2%, due 12/16/06......................................... 8,396,862
# 2,206,105 Overseas Private Investment Corp., Series C
1 1/2%, due 12/16/06......................................... 2,202,952
# 910,147 Overseas Private Investment Corp., Series D
1 1/2%, due 12/16/06......................................... 908,852
# 8,910,723 Overseas Private Investment Corp., Series E
1 1/2%, due 12/16/06......................................... 8,898,043
# 4,418,734 Overseas Private Investment Corp., Series F
1 1/2%, due 12/16/06......................................... 4,412,446
# 4,030,911 Overseas Private Investment Corp., Series G
1 1/2%, due 12/16/06......................................... 4,025,175
# 2,904,433 Overseas Private Investment Corp., Series H
1 1/2%, due 12/16/06......................................... 2,900,300
# 6,705,421 Overseas Private Investment Corp., Series I
1 1/2%, due 12/16/06......................................... 6,695,879
# 2,903,447 Overseas Private Investment Corp., Series J
1 1/2%, due 12/16/06......................................... 2,899,315
#1,279,885 Overseas Private Investment Corp., Series K
1 1/2%, due 12/16/06......................................... 1,278,064
---------------
Total U.S. Government Agency Obligations (Cost--$173,006,926) 166,321,372
---------------
MONEY MARKET INSTRUMENTS--24.5%
# 13,837,200 AIM STIC Liquid Assets Portfolio............................. 13,837,200
# 25,000,000 Chesham Finance LLC
1.935%, due 10/25/04......................................... 25,000,000
The accompanying note is an integral part of this financial statement.
10
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Par Value/ Value
Shares (Note 1)
------------- ---------------
#$ 25,000,000 Credit Suisse First Boston LLC Repurchase Agreement
1.925%, dated 9/30/04, due 10/01/04, with a repurchase price of
$25,001,337 and collateralized by
$20,610,000 ABSN 2004-HE5 A1 144A 5.00% ABS due 8/27/34;
$5,000,000 ABSN 2004-HE5 A2 144A 7.00% ABS due 8/27/34;
$299,625 CSFB 2004-6 B3 4.76% CMO due 9/25/19; and
$1,284,208 INDX 2004-AR9 5M5 4.34% CMO due 11/25/34............... $ 25,000,000
#50,000,000 Dresdner Kleinwort Wasserstein Securities LLC Repurchase Agreement
1.925%, dated 9/30/04, due 10/01/04, with a repurchase price of
$50,002,674 and collateralized by
$1,288,000 BAYV 2003-E M3 3.84% ABS due 10/28/34;
$1,000,000 BAYV 2003-F M4 3.94% ABS due 9/28/43;
$10,182,000 CWALT 2004-16CB B1 5.66% CMO due 8/25/34;
$5,000,000 FRENT 2004-C A 144A 5.25% ABS due 8/25/34;
$3,550,000 MSAC-NC5 M2 3.09% ABS due 7/25/34;
$2,000,000 RAMP 2004-RS1 MII2 3.29% ABS due 1/25/34;
$25,000,000 Scana Corp. 2.16% Senior Note due 11/15/06;
$1,691,590 SBA 505301 4.63% ABS due 2/25/26;
$500,000 SBA 505309 3.88% ABS due 1/25/26; and
$435,000 SBA 505374 3.88% ABS due 4/25/26......................... 50,000,000
50,000,000 General Electric Capital Corp.
1.74%, due 10/01/04............................................... 50,000,000
#50,000,000 Goldman Sachs & Co. Repurchase Agreement
1.945%, dated 9/30/04, due 10/01/04, with a repurchase price of
$50,002,701 and collateralized by
$50,915,481 Merrill Lynch & Co. 2.11% Medium Term Note due 9/18/06 50,000,000
#50,000,000 Greenwich Capital Markets Inc. Repurchase Agreement,
1.955%, dated 9/30/04, due 10/01/04, with a repurchase price of
$50,002,715 and collateralized by
$3,624,750 CWALT 2004-18CB 2A9 5.70% CMO due 9/25/34;
$1,000,000 CWALT 2004-18CB 5A2 6.25% CMO due 9/25/34;
$5,968,000 GMAC 2004-HE2 A2 2.88% ABS due 10/25/33;
$19,495,500 RALI 2004-QS12 A4 2.24% CMO due 9/25/34;
$14,885,000 RAMP 2004-RZ3 AI2 3.42% ABS due 10/25/27; and
$6,000,000 WAMU 2004-AR7 A6 3.96% CMO due 7/25/34................. 50,000,000
The accompanying note is an integral part of this financial statement.
11
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Par Value/ Value
Shares (Note 1)
------------- ---------------
#$ 18,301,498 Janus Institutional Cash Reserves Fund......................... $ 18,301,498
#28,000,000 Lehman Brothers Inc. Repurchase Agreement,
1.925%, dated 9/30/04, due 10/01/04, with a repurchase price of
$28,001,497 and collateralized by
$1,000,000 GT 1995-3 B1 7.85% ABS due 8/15/25;
$3,620,000 GT 1995-5 B1 7.30% ABS due 9/15/26;
$12,975,000 GT 1995-6 M1 8.10% ABS due 9/15/26;
$655,000 INHEL 2003-A MV4 4.59% ABS due 12/25/32;
$10,000,000 MSAC 2004-HE2 B3 5.34% ABS due 3/25/34; and
$125,000 Northwest Airlines Corp.
7.58% Pass-Thru Certificates due 3/01/19....................... 28,000,000
#50,000,000 Merrill Lynch Government Securities Inc. Repurchase Agreement,
1.955%, dated 9/30/04, due 10/01/04, with a repurchase price of
$50,02,715 and collateralized by $5,250,000 BSCMS 2004-ESA J
5.82% 144A CMO due 5/14/16;
$5,000,000 BSCMS 2004-HS2A J 3.97% 144A CMO due 1/14/16;
$1,264,000 BSARM 2004-7 B3 4.36% CMO due 10/25/34;
$4,545,000 BSABS 2004-AC4 B 3.74% CMO due 8/25/34;
$4,000,000 CWRT 2004-1R A 5.75% 144A CMO due 4/27/34;
$150,000 DLJCM 1998-CF2 B1 7.29% CMO due 11/12/31;
$4,000,000 EQIFP 1997-1 B 7.37% CMO due 12/20/15;
$11,354,000 FCLT 1997-CHL1 D 7.85% 144A CMO due 4/29/39;
$1,000,000 FUNBC 2001-C2 J 7.85% 144A CMO due 1/12/43;
$2,750,000 FHLT 2004-C M6 3.74% ABS due 8/25/34;
$200,000 GMACC 1998-C1 F 7.09% CMO due 5/15/30;
$1,528,000 MLMI 2004-A2 M3 3.96% CMO due 7/25/34;
$2,000,000 NCHET 2004-A MI2 5.65% ABS due 8/25/34;
$1,000,000 RAMP 2004-RS1 MII6 6.34% ABS due 1/25/34;
$8,705,000 SBM7 1997-HUD2 B2 7.00% CMO due 7/25/24;
$12,020,000 SUNOT 2004-1A D 4.93% 144A ABS due 10/20/20; and
$745,000 WFMBS 2004-R B3 4.46% CMO due 9/25/34................. 50,000,000
The accompanying note is an integral part of this financial statement.
12
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Par Value/ Value
Shares (Note 1)
------------ ---------------
#$50,000,000 Nomura Securities International Inc. Repurchase Agreement, 1.925%, dated
9/30/04, due 10/01/04, with a repurchase price of
$50,002,674 and collateralized by
$36,521,739 AMAC 2002-9 A2 5.75% CMO due 12/25/32;
$49,895,682 BOAA 2003-2 CB6 6.16% CMO due 4/25/33;
$2,550,384 CWHL 2002-16 1A14 6.50% CMO due 9/25/32;
$43,855,000 CWHL 2003-J3 1A2 5.61% CMO due 5/25/33;
$27,000,000 CWALT 2002-17 A6 6.21% CMO due 1/25/33;
$34,543,797 CWHL 2002-31 A11 6.00% CMO due 1/25/33;
$20,746,666 CWHL 2003-41 A2 5.25% CMO due 12/25/33;
$7,288,331 CSFB 2002-22 4X 7.50% CMO due 7/25/32;
$22,362,549 FNT 1999-2 4X 6.50% CMO due 4/25/29;
$4,615,000 FNW 2002-W1 2AI0 0.55% CMO due 4/25/42;
$33,580,000 FHASI 2003-9 1A9 5.76% CMO due 11/25/33;
$25,000,000 GECMC 2001-1 X2 0.95% 144A CMO due 5/15/33;
$150,000 GMACC 2002-C3 A2 CMO 4.93% due 7/10/39;
$880,000 JPMCC 2004-C2 A2 5.26% CMO due 5/15/41;
$101,338,619 JPMCC 2004-FL1A XFL 0.11% 144A CMO due 4/16/19;
$33,330,000 MASTR 2003-7 4A36 5.26% CMO due 9/25/33;
$41,266,071 MASTR 2003-7 4A46 5.71% CMO due 9/25/33;
$37,452,188 MASTR 2003-2 2A7 6.26% CMO due 3/25/18;
$76,418,250 MSSTR 2003-1 3A3 6.26% CMO due 2/25/33;
$2,075,000 MSC 1997-C1 B 7.69% CMO due 2/15/20;
$1,780,192 NAA 2003-A1 APO 0.00% CMO due 5/25/33;
$11,731,677 PNCMS 1999-5 2X 6.75% CMO due 7/25/29;
$11,795,857 PRIME 2003-1 A9 6.09% CMO due 6/25/33;
$4,442,200 PHMS 1993-61 A14 18.13% CMO due 12/25/08;
$44,596,331 RALI 2002-QS19 A3 6.16% CMO due 12/25/32;
$50,000,000 RALI 2002-QS12 A3 6.16% CMO due 9/25/32;
$26,500,000 RALI 2003-QS15 A5 5.50% CMO due 8/25/33;
$20,000,000 RFMSI 2002-S19 A9 6.11% CMO due 12/25/32;
$74,799,662 RFMSI 2003-S4 A11 5.71% CMO due 3/25/33;
$1,500,000 SBM7 2001-C2 A2 6.17% CMO due 2/13/10;
$138,474,267 SASC 2002-26 1A17 5.60% CMO due 1/25/33;
$32,381,630 SASC 2003-1 1A7 5.25% CMO due 2/25/18;
$385,530 SAMI 2004-AR1 2A1 3.37% CMO due 3/19/34;
$12,934,000 WAMU 2002-S8 2A3 5.25% CMO due 1/25/18;
$41,666,000 WAMMS 2003-MS5 1A5 5.66% CMO due 3/25/18;
$25,833,333 WFMBS 2002-18 1A6 6.00% CMO due 12/25/32;
$452,391,709 WFMBS 2002-18 2AIO 0.65% CMO due 12/25/32; and
$39,651,000 WFMBS 2004-4 A6 5.16% CMO due 5/25/34....................... $ 50,000,000
The accompanying note is an integral part of this financial statement.
13
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2004
Market
Par Value/ Value
Shares (Note 1)
----------------- ---------------
$30,000,000 Toyota Motor Credit Corp.
1.65%, due 10/01/04................................................ $ 30,000,000
---------------
Total Money Market Instruments (Amortized Cost--$440,138,698)...... 440,138,698
---------------
CASH AND OTHER ASSETS LESS LIABILITIES (40.1%)......................................... (750,354,187)
---------------
REMARKETED PREFERRED STOCK
($.001 par value per share; 100,000,000 shares authorized and 5,000 shares issued and
outstanding; liquidation preference $100,000 per share).............................. (500,000,000)
---------------
NET ASSETS APPLICABLE TO COMMON STOCK
(equivalent to $8.12 per share of common stock based on 220,730,830 shares of common
stock outstanding; authorized 250,000,000 shares).................................... $ 1,791,254,663
===============
# This security was purchased with the cash proceeds from securities loans.
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets applicable to common shares of the
Fund.
--------
SIGNIFICANT ACCOUNTING POLICIES:
(1)The market values for securities are determined as follows: Equity
securities traded on a national securities exchange or traded
over-the-counter and quoted on the NASDAQ System are valued at last sales
prices. Fixed income securities and any other securities for which it is
determined that market prices are unavailable or inappropriate are valued at
a fair value using a procedure determined in good faith by the Board of
Directors which includes the use of a pricing service. Each money market
instrument having a maturity of 60 days or less is valued on an amortized
cost basis, which approximates market value.
(2)At December 31, 2003, the Fund's most recent fiscal tax year end, based on a
tax cost of investments of $2,712,873,413, the Fund had gross unrealized
appreciation of $253,248,708 and unrealized depreciation of $92,979,901.
14
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and
principal financial officer have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act of 1940 (the "1940 Act")) are effective,
based on an evaluation of those controls and procedures made as of a
date within 90 days of the filing date of this report as required by
Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Exchange
Act.
(b) There has been no change in the registrant's internal
control over financial reporting (as defined in Rule 30a-3(d) under the
1940 Act that occurred during the registrant's last fiscal quarter that
has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Exhibit 99.CERT Certifications pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) DNP SELECT INCOME FUND INC.
By (Signature and Title) /s/ Nathan I. Partain
----------------------------------------
Nathan I. Partain
President and Chief Executive Officer
Date November 12, 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/ Nathan I. Partain
----------------------------------------
Nathan I. Partain
President and Chief Executive Officer
Date November 12, 2004
By (Signature and Title) /s/ Joseph C. Curry, Jr.
----------------------------------------
Joseph C. Curry, Jr.
Vice President and Treasurer
Date November 12, 2004