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, 2011
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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
PORTFOLIO OF INVESTMENTS (a)
AUGUST 31, 2011 (UNAUDITED)
SHARES DESCRIPTION VALUE
--------------- -------------------------------------------------------------------- --------------
COMMON STOCKS (b) - 90.0%
AUSTRALIA - 17.0%
1,117,453 Asciano Group (c)................................................... $ 1,882,312
1,042,962 Australian Infrastructure Fund (c).................................. 2,127,904
1,079,803 MAp Group (c)....................................................... 3,655,866
3,539,084 SP AusNet (c)....................................................... 3,513,238
6,874,821 Spark Infrastructure Group (c) (d).................................. 9,249,790
357,527 Transurban Group (c)................................................ 1,983,656
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22,412,766
--------------
CANADA - 7.5%
207,637 EnerCare, Inc. ..................................................... 1,585,954
215,896 Northland Power, Inc. .............................................. 3,472,238
101,549 Pembina Pipeline Corp. ............................................. 2,643,198
50,637 TransCanada Corp. .................................................. 2,190,323
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9,891,713
--------------
FRANCE - 12.3%
37,343 Aeroports de Paris (c).............................................. 3,117,208
245,824 GDF Suez (c)........................................................ 7,721,395
102,567 Vinci S.A. (c)...................................................... 5,351,779
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16,190,382
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GERMANY - 5.5%
190,015 E.On AG (c)......................................................... 4,149,574
17,580 Fraport AG Frankfurt Airport Services Worldwide (c)................. 1,229,888
55,631 Hamburger Hafen Und Logistik AG (c)................................. 1,897,381
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7,276,843
--------------
ITALY - 8.3%
490,664 Atlantia SpA (c).................................................... 7,906,054
630,289 Enel SpA (c)........................................................ 3,074,134
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10,980,188
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JAPAN - 1.5%
426,000 Tokyo Gas Co., Ltd. (c)............................................. 1,960,226
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LUXEMBOURG - 1.1%
53,809 SES Global (c)...................................................... 1,470,805
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SPAIN - 6.2%
510,057 Abertis Infraestructuras S.A. (c)................................... 8,087,959
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SWITZERLAND - 1.7%
4,908 Flughafen Zuerich AG (c)............................................ 2,168,653
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UNITED KINGDOM - 12.9%
519,331 Centrica plc (c).................................................... 2,516,321
567,862 National Grid plc (c)............................................... 5,721,003
101,040 Scottish and Southern Energy plc (c)................................ 2,127,962
199,499 Severn Trent plc (c)................................................ 4,748,105
196,322 United Utilities Group plc (c)...................................... 1,908,590
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17,021,981
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See Notes to Quarterly Portfolio of Investments Page 1
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (Continued)
AUGUST 31, 2011 (UNAUDITED)
SHARES DESCRIPTION VALUE
--------------- -------------------------------------------------------------------- --------------
COMMON STOCKS (b) - (Continued)
UNITED STATES - 16.0%
51,600 American Electric Power Co., Inc. .................................. $ 1,993,308
64,100 FirstEnergy Corp. .................................................. 2,836,425
68,200 NextEra Energy, Inc. ............................................... 3,868,304
183,500 PG&E Corp. ......................................................... 7,771,225
44,088 SemGroup Corp., Class A (e)......................................... 1,010,938
40,500 Southern Co. ....................................................... 1,675,080
74,300 Spectra Energy Corp. ............................................... 1,929,571
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21,084,851
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TOTAL COMMON STOCKS ................................................ 118,546,367
(Cost $114,791,054) --------------
MASTER LIMITED PARTNERSHIPS (b) - 9.2%
UNITED STATES - 9.2%
21,177 Energy Transfer Equity, L.P. ....................................... 809,808
139,877 Enterprise Products Partners, L.P. ................................. 5,895,816
90,281 Magellan Midstream Partners, L.P. .................................. 5,414,152
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TOTAL MASTER LIMITED PARTNERSHIPS .................................. 12,119,776
(Cost $10,867,386) --------------
RIGHTS (b) - 0.3%
SPAIN - 0.3%
510,057 Abertis Infraestructuras S.A. ...................................... 402,981
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TOTAL RIGHTS ....................................................... 402,981
(Cost $0) --------------
PRINCIPAL RATINGS (f) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (g) MATURITY (h) VALUE
--------------- ----------------------------- --------------- ---------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS - 33.6%
ALTERNATIVE CARRIERS - 2.1%
$ 2,900,000 Level 3 Financing, Inc., Term
Loan B2 ................. B1 B+ 6.75% 09/01/18 $ 2,729,625
--------------
CABLE & SATELLITE - 7.9%
1,997,494 Bresnan Broadband Holdings,
LLC, Term Loan B ........ Ba3 BB+ 4.50% 12/14/17 1,915,097
40,924 Charter Communications
Operating, LLC,
Incremental Term Loan
B-2 ..................... Ba1 BB+ 7.25% 03/06/14 38,878
2,478,621 Charter Communications
Operating, LLC, Term Loan
C ....................... Ba1 BB+ 3.50% 09/06/16 2,343,536
1,461,769 CSC Holdings, Inc., Term Loan
B2, Extended Maturity ... Baa3 BBB- 1.97% 03/29/16 1,393,552
Page 2 See Notes to Quarterly Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (Continued)
AUGUST 31, 2011 (UNAUDITED)
PRINCIPAL RATINGS (f) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (g) MATURITY (h) VALUE
--------------- ----------------------------- --------------- ---------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS - (CONTINUED)
CABLE & SATELLITE - (CONTINUED)
$ 493,750 CSC Holdings, Inc., Term Loan
B3, Extended Maturity ... Baa3 BBB- 1.97% 03/29/16 $ 467,520
1,997,494 Knology, Inc., Term Loan B .. B1 B+ 4.00% 08/18/17 1,897,619
164,118 UPC Broadband Holdings B.V.,
Term Loan T ............. Ba3 B+ 3.69% 12/31/16 153,450
2,324,144 UPC Broadband Holdings B.V.,
Term Loan X ............. Ba3 B+ 3.69% 12/31/17 2,155,644
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10,365,296
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ELECTRIC UTILITIES - 2.1%
997,500 Equipower Resources Holdings,
LLC, Term Loan B ........ Ba3 BB- 5.75% 01/26/18 957,600
1,994,975 GenOn Energy, Inc., Term Loan B2 BB- 6.00% 09/20/17 1,900,213
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2,857,813
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ENVIRONMENTAL & FACILITIES SERVICES - 1.4%
1,980,000 EnergySolutions, LLC, Term
Loan .................... Ba2 BB+ 6.25% 08/15/16 1,881,000
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HEALTH CARE FACILITIES - 9.7%
64,478 CHS/Community Health Systems,
Inc., Delayed Draw Term
Loan .................... Ba3 BB 2.47%-2.57% 07/25/14 59,884
2,118,462 CHS/Community Health Systems,
Inc., Extended Term Loan Ba3 BB 3.72%-3.82% 01/25/17 1,935,745
1,254,046 CHS/Community Health Systems,
Inc., Term Loan ......... Ba3 BB 2.47%-2.57% 07/25/14 1,164,695
3,597,027 HCA, Inc., Term Loan B-2 .... Ba3 BB 3.50% 03/31/17 3,321,253
469,758 HCA, Inc., Term Loan B-3 .... Ba3 BB 3.50% 05/01/18 441,572
1,279,933 Health Management Associates
Inc., Term Loan B ....... B1 BB- 2.00% 02/28/14 1,188,204
2,992,500 IASIS Healthcare Corporation,
Term Loan B............. Ba3 B 5.00% 05/03/18 2,768,063
1,975,125 Vanguard Health Systems,
Inc., Term Loan B ....... Ba2 BB- 5.00% 01/29/16 1,869,785
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12,749,201
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INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 9.6%
3,496,875 AES Corp., Term Loan B ...... Ba1 BB+ 4.25% 06/01/18 3,364,284
2,493,750 Calpine Corp., Term Loan .... B1 B+ 4.50% 04/01/18 2,306,719
500,000 Calpine Corp., Term Loan
B-2 ..................... B1 B+ 4.50% 04/01/18 462,500
400,000 Dynegy, Inc., Term Loan ..... NR NR 9.25% 08/05/16 386,750
1,100,000 Dynegy, Inc., Term Loan B ... B2 B 9.25% 08/05/16 1,076,166
See Notes to Quarterly Portfolio of Investments Page 3
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (Continued)
AUGUST 31, 2011 (UNAUDITED)
PRINCIPAL RATINGS (f) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (g) MATURITY (h) VALUE
--------------- ----------------------------- --------------- ---------- ------------ --------------
SENIOR FLOATING-RATE LOAN INTERESTS - (CONTINUED)
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - (CONTINUED)
$ 266,667 Longview Power, LLC,
Synthetic Letter of
Credit .................. B3 B 2.50% 02/28/14 $ 236,667
1,733,333 Longview Power, LLC, Term
Loan B .................. B3 B 2.44% 02/28/14 1,538,333
3,000,000 NRG Energy, Inc., Term Loan B Baa3 BB+ 4.00% 07/01/18 2,902,500
102,041 NSG Holdings, LLC, Synthetic
Letter of Credit ........ Ba2 BB 1.75% 06/15/14 96,429
248,483 NSG Holdings, LLC, Term Loan Ba2 BB 1.75% 06/15/14 234,817
--------------
12,605,165
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WIRELESS TELECOMMUNICATION SERVICES - 0.8%
1,044,276 Windstream Corp., Term Loan
B-2 ..................... Baa3 BB+ 2.97%-3.00% 12/17/15 1,007,074
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TOTAL SENIOR FLOATING-RATE LOAN INTERESTS .......................... 44,195,174
(Cost $46,598,185) --------------
TOTAL INVESTMENTS - 133.1% ......................................... 175,264,298
(Cost $172,256,625) (i)
OUTSTANDING LOANS - (36.1%) ........................................ (47,500,000)
NET OTHER ASSETS AND LIABILITIES - 3.0% ............................ 3,919,274
--------------
NET ASSETS - 100.0% ................................................ $ 131,683,572
==============
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(a) All percentages shown in the Portfolio of Investments are based on net
assets.
(b) All of these securities, excluding Tokyo Gas Co. Ltd., are available to
serve as collateral for the outstanding loan. As of August 31, 2011, the
aggregate market value of the securities available to serve as collateral
on the outstanding loan was $129,108,898.
(c) Security is fair valued in accordance with procedures adopted by the
Fund's Board of Trustees, and in accordance with the provisions of the
Investment Company Act of 1940, as amended.
(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 Australian Exchange and
trades freely without any additional registration. As such, it does not
require the additional disclosure required of restricted securities.
(e) Non-income producing security.
(f) Ratings below Baa3 by Moody's Investors Service, Inc. or BBB- by Standard
& Poor's Ratings Group are considered to be below investment grade.
(g) 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 base LIBOR
rate.
(h) 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.
Page 4 See Notes to Quarterly Portfolio of Investments
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (Continued)
AUGUST 31, 2011 (UNAUDITED)
(i) Aggregate cost for financial reporting purposes, which approximates the
aggregate cost for federal income tax purposes. As of August 31, 2011, the
aggregate gross unrealized appreciation for all securities in which there
was an excess of value over tax cost was $13,597,942 and the aggregate
gross unrealized depreciation for all securities in which there was an
excess of tax cost over value was $10,590,269.
NR Not Rated
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2011 is as follows (see Note A - Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2011 PRICES INPUTS INPUTS
-------------- -------------- -------------- --------------
Common Stocks:
Australia................................. $ 22,412,766 $ -- $ 22,412,766 $ --
Canada.................................... 9,891,713 9,891,713 -- --
France.................................... 16,190,382 -- 16,190,382 --
Germany................................... 7,276,843 -- 7,276,843 --
Italy..................................... 10,980,188 -- 10,980,188 --
Japan..................................... 1,960,226 -- 1,960,226 --
Luxembourg................................ 1,470,805 -- 1,470,805 --
Spain..................................... 8,087,959 -- 8,087,959 --
Switzerland............................... 2,168,653 -- 2,168,653 --
United Kingdom............................ 17,021,981 -- 17,021,981 --
United States............................. 21,084,851 21,084,851 -- --
-------------- -------------- -------------- --------------
Total Common Stocks.................... 118,546,367 30,976,564 87,569,803 --
-------------- -------------- -------------- --------------
Master Limited Partnerships*.................. 12,119,776 12,119,776 -- --
Rights*....................................... 402,981 402,981 -- --
Senior Floating-Rate Loan Interests:..........
Alternative Carriers................... 2,729,625 -- 2,729,625 --
Cable & Satellite...................... 10,365,296 -- 8,467,677 1,897,619
Electric Utilities..................... 2,857,813 -- 2,857,813 --
Environmental & Facilities Services.... 1,881,000 -- 1,881,000 --
Health Care Facilities................. 12,749,201 -- 12,749,201 --
Independent Power Producers & Energy
Traders............................. 12,605,165 -- 9,702,665 2,902,500
Wireless Telecommunication Services.... 1,007,074 -- 1,007,074 --
-------------- -------------- -------------- --------------
Total Senior Floating-Rate Loan
Interests.................... 44,195,174 -- 39,395,055 4,800,119
-------------- -------------- -------------- --------------
TOTAL INVESTMENTS............................. $ 175,264,298 $ 43,499,321 $ 126,964,858 $ 4,800,119
============== ============== ============== ==============
* See the Portfolio of Investments for industry or country breakout.
See Notes to Quarterly Portfolio of Investments Page 5
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (Continued)
AUGUST 31, 2011 (UNAUDITED)
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. As of August
31, 2011, the Fund transferred common stocks valued at $79,787,043 from Level 1
to Level 2 of the fair value hierarchy. The common stocks that transferred from
Level 1 to Level 2 did so as a result of foreign equities that were valued based
on quoted prices at November 30, 2010 that are now being fair valued due to the
change in value between the foreign markets close and the U.S. markets close on
August 31, 2011. See Note A, "Portfolio Valuation" in the Notes to Quarterly
Portfolio of Investments.
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.
CHANGE IN NET
INVESTMENTS AT FAIR VALUE USING BALANCE AS OF UNREALIZED BALANCE AS OF
SIGNIFICANT UNOBSERVABLE INPUTS NOVEMBER 30, TRANSFERS IN APPRECIATION NET PURCHASES AUGUST 31,
(LEVEL 3) 2010 (OUT) OF LEVEL 3 (DEPRECIATION) (SALES) 2011
----------------------------------- --------------- ----------------- ---------------- --------------- ---------------
Senior Floating-Rate Loan Interests $ 1,895,000 $ 4,800,119 $ 105,000 $(2,000,000) $ 4,800,119
=============== ================= ================ =============== ===============
% OF TOTAL
INDUSTRY CLASSIFICATION(1) INVESTMENTS
------------------------------------------- ---------------
Transportation Infrastructure 18.6%
Electric Utilities 18.5
Multi-Utilities 13.5
Oil, Gas & Consumable Fuels 11.4
Water Utilities 3.8
Construction & Engineering 3.1
Independent Power Producers & Energy
Traders 2.0
Gas Utilities 1.1
Road & Rail 1.1
Diversified Consumer Services 0.9
Media 0.8
------------------------------------------- ---------------
Total 74.8%
===============
(1) Represents the industry classification breakdown for the Core Component of
the portfolio, which includes the Common Stock, Master Limited Partnership
and Rights securities. It excludes the Senior Floating-Rate Loan Interest
component of the portfolio, which makes up the remaining 25.2% of the
portfolio.
Page 6 See Notes to Quarterly Portfolio of Investments
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
AUGUST 31, 2011 (UNAUDITED)
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. 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 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 in accordance with valuation procedures
adopted by the Fund's Board of Trustees, and in accordance with provisions of
the Investment Company Act of 1940, as amended (the "1940 Act"). The following
securities, for which accurate and reliable market quotations are readily
available, will be valued as follows:
Common stocks and other securities listed on any national or foreign
exchange (excluding the NASDAQ National Market ("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. If
there are no transactions on the valuation day, the securities are valued
at the mean between the most recent bid and asked prices.
Securities listed on the NASDAQ or the AIM are valued at the official
closing price. If there is no official closing price on the valuation day,
the securities are valued at the mean between the most recent bid and
asked prices.
Securities traded in the over-the-counter market are valued at their
closing bid prices.
All market quotations used in valuing the Fund's securities will be obtained
from a third party pricing service. If no quotation is received from a pricing
service, attempts will be made to obtain one or more broker quotes for the
security. In the event the pricing service does not provide a valuation, broker
quotations are not readily available, or the valuations received 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.
Additionally, if events occur after the close of the principal markets for
certain securities (e.g., domestic debt and foreign securities) that could
materially affect the Fund's NAV, First Trust will use a fair value method to
value the Fund's securities. The use of fair value pricing is governed by
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with the provisions of the 1940 Act. As a general principle, the fair value of a
security is the amount which the Fund might reasonably expect to receive for the
security upon its current sale. However, in light of the judgment involved in
fair valuations, there can be no assurance that a fair value assigned to a
particular security will be the amount which the Fund might be able to receive
upon its current sale. Fair valuation of common stocks and other equity
securities will be based on the consideration of all available information,
including, but not limited to the following:
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.
Page 7
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (Continued)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
AUGUST 31, 2011 (UNAUDITED)
Foreign securities traded outside the United States are generally valued once
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 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, 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 and 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 a third party
pricing service. The third party pricing service primarily uses broker quotes to
value the Senior Loans. If the pricing service cannot 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 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;
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 issuer;
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, including any ability to
obtain money or resources from a parent or affiliate and an
assessment of the issuer's management;
11) the prospects for the issuer's industry, and multiples (of earnings
and/or cash flows) being paid for similar businesses in that
industry; and
12) other relevant factors.
Short-term investments that mature in less than 60 days when purchased are
valued at amortized cost.
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 securities. An active market is a market in which
transactions for the security 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 securities in active markets.
o Quoted prices for identical or similar securities in markets
that are non-active. A non-active market is a market where
there are few transactions for the security, 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
security (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.
--------
1 The terms "security" and "securities" used throughout the Notes to
Quarterly Portfolio of Investments include Senior Loans.
Page 8
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (Continued)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
AUGUST 31, 2011 (UNAUDITED)
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
security.
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, 2011, 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.
Distributions received from a Fund's investments in Master Limited Partnerships
("MLP") 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, 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. 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.
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 unfunded delayed draw loan
commitments as of August 31, 2011.
Page 9
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 24, 2011
--------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ James A. Bowen
------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date October 24, 2011
--------------------
By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)
Date October 24, 2011
--------------------
* Print the name and title of each signing officer under his or her signature.