OMB
Number: 3235-0578 Expires: May 31, 2007 Estimated average burden hours per response: 21.09 |
| Nathan I. Partain | John R. Sagan | |||
| DNP Select Income Fund Inc. | Mayer, Brown, Rowe & Maw LLP | |||
| 55 East Monroe Street, Suite 3600 | 71 South Wacker Drive | |||
| Chicago, Illinois 60603 | Chicago, Illinois 60606 |
Registrant’s telephone number, including
area code: (312) 368-5510
Date of fiscal year end: December
31
Date of reporting period: September 30, 2006
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
| ITEM 1. | SCHEDULE OF INVESTMENTS. The Schedule of Investments follows. |
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS
(UNAUDITED)
September 30, 2006
COMMON STOCKS—98.7%
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Shares
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Description | |
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| n ELECTRIC AND GAS—71.2% | |||||
| 982,300 | Ameren Corp. |
$
|
51,855,617
|
||
| 1,000,000 | Atmos Energy Corp. |
28,550,000
|
|||
| 3,071,300 | CenterPoint Energy Inc. |
43,981,016
|
|||
| 1,125,000 | Consolidated Edison Inc. |
51,975,000
|
|||
| 2,030,000 | Duke Energy Corp. |
61,306,000
|
|||
| 900,000 | Endesa S.A. (Spain) |
38,249,504
|
|||
| 1,100,000 | Energy East Corp. |
26,092,000
|
|||
| 1,464,000 | Exelon Corp. |
88,630,560
|
|||
| 1,735,000 | FPL Group Inc. |
78,075,000
|
|||
| 1,535,000 | FirstEnergy Corp. |
85,745,100
|
|||
| 800,000 | Great Plains Energy Inc. |
24,816,000
|
|||
| 188,673 | National Grid PLC ADR |
11,827,910
|
|||
| 675,714 | National Grid PLC (United Kingdom) |
8,425,189
|
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| 800,000 | Nicor Inc. |
34,208,000
|
|||
| 1,000,000 | Northeast Utilities Inc. |
23,270,000
|
|||
| 2,237,200 | NSTAR |
74,632,992
|
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| 1,000,000 | OGE Energy Corp. |
36,110,000
|
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| 1,296,733 | Oneok Inc. |
49,003,540
|
|||
| 1,350,000 | PG&E Corp. |
56,227,500
|
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| 1,200,000 | PPL Corp. |
39,480,000
|
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| 1,500,000 | Pinnacle West Capital Corp. |
67,575,000
|
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| 1,375,000 | Progress Energy Inc. |
62,397,500
|
|||
| 1,000,000 | Puget Energy, Inc. |
22,730,000
|
|||
| 393,000 | RWE AG (Germany) |
36,267,104
|
|||
| 600,000 | SCANA Corp. |
24,162,000
|
|||
| 1,000,000 | Scottish & Southern Energy ADR |
24,619,400
|
|||
| 850,000 | Scottish & Southern Energy PLC (United Kingdom) |
20,926,653
|
|||
| 1,587,301 | Scottish Power PLC (United Kingdom) |
19,316,976
|
|||
| 2,000,000 | Southern Co. |
68,920,000
|
|||
| 1,625,000 | Teco Energy Inc. |
25,431,250
|
|||
| 1,500,000 | Vectren Corp. |
40,275,000
|
|||
| 1,000,000 | WGL Holdings Inc. |
31,340,000
|
|||
The accompanying notes are an integral part of the financial statement.
4
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
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Shares
|
Description |
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| 581,000 | WPS Resources Corp. |
$
|
28,835,030 | ||
| 1,000,000 | Westar Energy Inc. | 23,510,000 | |||
| 3,499,304 | Xcel Energy Inc. | 72,260,628 | |||
|
|
|
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| 1,481,027,469 | |||||
| n TELECOMMUNICATION—15.8% | |||||
| 1,799,230 | AT&T Inc. | 58,582,929 | |||
| 1,464,000 | BCE Inc. | 39,659,760 | |||
| 565,000 | BT Group PLC ADR | 28,572,050 | |||
| 1,377,000 | Chunghwa Telecom Co. Ltd. ADR | 23,835,870 | |||
| 2,500,000 | Citizens Communications Co. | 35,100,000 | |||
| 1,028,000 | Telecom Italia SpA ADR | 29,123,240 | |||
| 856,250 | Telecom Corp of New Zealand Ltd. ADR | 19,205,688 | |||
| 4,855,000 | TeliaSonera AB (Sweden) | 31,136,446 | |||
| 1,719,492 | Verizon Communications Inc. | 63,844,738 | |||
|
|
|
||||
| 329,060,721 | |||||
| n NON-UTILITY—11.7% | |||||
| 98,632 | AMB Property Corp. | 5,435,609 | |||
| 76,015 | Alexandria Real Estate Equities Inc. | 7,130,207 | |||
| 40,000 | Apartment Investment and Management Co. | 2,176,400 | |||
| 192,850 | Archstone Smith Trust | 10,498,754 | |||
| 66,221 | AvalonBay Communities Inc. | 7,973,008 | |||
| 90,195 | Boston Properties Inc. | 9,320,751 | |||
| 64,978 | Camden Property Trust | 4,938,978 | |||
| 182,500 | Corporate Office Properties Trust | 8,168,700 | |||
| 151,112 | Developers Diversified Realty Corp. | 8,426,005 | |||
| 103,223 | Diamondrock Hospitality Co. | 1,714,534 | |||
| 161,313 | Digital Realty Trust Inc. | 5,052,323 | |||
| 170,450 | Equity Office Properties Trust | 6,777,092 | |||
| 262,269 | Equity Residential | 13,265,566 | |||
| 66,504 | Essex Property Trust Inc. | 8,073,586 | |||
| 207,293 | Extra Space Storage Inc. | 3,588,242 | |||
| 15,000 | Federal Realty Investment Trust | 1,114,500 | |||
The accompanying notes are an integral part of the financial statement.
5
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
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Shares
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Description |
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| 159,118 | General Growth Properties Inc. |
$
|
7,581,973 | ||
| 44,159 | Hospitality Properties Trust | 2,084,305 | |||
| 425,785 | Host Hotels & Resorts Inc. | 9,763,250 | |||
| 73,078 | Kilroy Realty Corp. | 5,505,696 | |||
| 215,015 | Kimco Realty Corp. | 9,217,693 | |||
| 74,629 | LaSalle Hotel Properties | 3,234,421 | |||
| 103,444 | The Macerich Co. | 7,898,984 | |||
| 13,630 | Pan Pacific Retail Properties Inc. | 946,195 | |||
| 248,630 | ProLogis | 14,186,828 | |||
| 124,335 | Public Storage Inc. | 10,691,567 | |||
| 55,055 | Reckson Associates Realty Corp. | 2,356,354 | |||
| 75,535 | Regency Centers Corp. | 5,193,787 | |||
| 81,284 | SL Green Realty Corp. | 9,079,423 | |||
| 200,020 | Simon Property Group Inc. | 18,125,812 | |||
| 56,598 | Strategic Hotels and Resorts Inc. | 1,125,168 | |||
| 202,422 | Sunstone Hotel Investors Inc. | 6,015,982 | |||
| 184,367 | United Dominion Realty Trust Inc. | 5,567,883 | |||
| 173,891 | Ventas Inc. | 6,701,759 | |||
| 120,381 | Vornado Realty Trust | 13,121,529 | |||
|
|
|
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| 242,052,864 | |||||
|
|
|
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| Total Common Stocks (Cost—$1,657,848,068) | 2,052,141,054 | ||||
|
|
|
||||
The accompanying notes are an integral part of the financial statement.
6
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
PREFERRED STOCKS—10.4%
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Shares
|
Description |
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| n UTILITY—4.3% | |||||
| 700,000 | Entergy Corp. 7 5/8% due 2/17/09 |
$
|
38,094,000 | ||
| 1,200,000 | Great Plains Energy Inc. 8% due 2/16/07 | 29,904,000 | |||
| 220,000 | Southern California Edison 6 1/8% Perpetual | 21,993,136 | |||
|
|
|
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| 89,991,136 | |||||
| n NON-UTILITY—6.1% | |||||
| 710,432 | AMB Property Corp. 7% Series O Perpetual | 18,073,390 | |||
| 17,300 | AvalonBay Communities Inc. 8.70% Series H Perpetual | 473,847 | |||
| 650,000 | Duke Realty Corp. 6.95% Series M Perpetual | 16,562,000 | |||
| 104,900 | Equity Office Properties Trust 7 3/4% Series G Perpetual | 2,664,460 | |||
| 300,000 | Federal National Mortgage Association 7% Perpetual | 15,956,250 | |||
| 400,000 | New Plan Excel Realty Trust 7 5/8% Series E Perpetual | 10,216,000 | |||
| 8,500 | ProLogis 6 3/4% Series F Perpetual | 212,500 | |||
| 9,600 | ProLogis 6 3/4% Series G Perpetual | 240,000 | |||
| 208,600 | Public Storage Inc. 6.95% Series H Perpetual | 5,283,838 | |||
| 900,000 | Public Storage Inc. 7 1/4% Series I Perpetual | 23,328,000 | |||
| 600,000 | Realty Income Corp. 7 3/8% Series D Perpetual | 15,240,000 | |||
| 200,000 | Vornado Realty Trust 7% Series E Perpetual | 5,114,000 | |||
| 234,900 | Vornado Realty Trust 6 5/8% Series G Perpetual | 5,708,070 | |||
| 350,000 | Vornado Realty Trust 6 5/8% Series I Perpetual | 8,522,500 | |||
|
|
|
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| 127,594,855 | |||||
|
|
|
||||
| Total Preferred Stocks (Cost—$213,330,081) | 217,585,991 | ||||
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|
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The accompanying notes are an integral part of the financial statement.
7
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
BONDS—43.1%
| Ratings | |||||||||
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Par Value
|
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n ELECTRIC AND GAS—14.2%
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| $22,000,000 |
Arizona Public Service Company
|
||||||||
|
67/8%, due 8/01/36
|
Baa2 | BBB- | $ |
23,015,366 | |||||
| 19,450,000 |
Comed Financing II
|
||||||||
|
8½%, due 1/15/27
|
Ba1 | BBB- | 20,192,776 | ||||||
| 9,304,000 |
Commonwealth Edison Co.
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||||||||
|
8%, due 5/15/08
|
Baa1 | A- | 9,680,430 | ||||||
| 24,000,000 |
Dominion Resources Capital Trust I
|
||||||||
|
7.83%, due 12/01/27
|
Baa3 | BB+ | 24,994,200 | ||||||
| 20,000,000 |
Duke Energy Corp., Series D
|
||||||||
|
73/8%, due 3/01/10
|
A3 | BBB | 21,293,880 | ||||||
| 5,000,000 |
Entergy Corp.
|
||||||||
|
6.30%, due 9/01/35
|
Baa1 | A- | 4,886,610 | ||||||
| 10,000,000 |
FirstEnergy Corp., Series B
|
||||||||
|
6.45%, due 11/15/11
|
Baa3 | BBB- | 10,443,070 | ||||||
| 24,340,000 |
Illinois Power Co.
|
||||||||
|
7½%, due 6/15/09
|
Baa2 | BBB+ | 25,627,927 | ||||||
| 17,000,000 |
Keyspan Corp.
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||||||||
|
75/8%, due 11/15/10
|
A3 | A | 18,361,700 | ||||||
| 15,825,000 |
Niagara Mohawk Power Corp.
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|
87/8%, due 5/15/07
|
Baa1 | A- | 16,150,615 | ||||||
| 10,000,000 |
Northern Border Partners LP
|
||||||||
|
87/8%, due 6/15/10
|
Baa2 | BBB | 11,087,840 | ||||||
| 5,000,000 |
NSTAR
|
||||||||
|
8% due 2/15/10
|
A2 | A | 5,406,640 | ||||||
| 9,000,000 |
PSEG Power LLC
|
||||||||
|
85/8%, due 4/15/31
|
Baa1 | BBB | 11,703,699 | ||||||
| 15,000,000 |
Progress Energy Inc.
|
||||||||
|
7.10%, due 3/01/11
|
Baa2 | BBB- | 16,094,340 | ||||||
| 22,750,000 |
Puget Capital Trust
|
||||||||
|
8.231%, due 6/01/27
|
Ba1 | BB | 22,195,742 | ||||||
The accompanying notes are an integral part of the financial statement.
8
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
| Ratings | |||||||||
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Par Value
|
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|||||
| $12,915,000 |
Sempra Energy
|
||||||||
|
7.95%, due 3/01/10
|
Baa1 | BBB+ |
$
|
13,937,635 | |||||
| 13,000,000 |
Southern Co. Capital Trust II
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||||||||
|
8.14%, due 2/15/27
|
Baa1 | BBB+ | 13,614,224 | ||||||
| 6,488,000 |
Southern Union Co.
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|
7.60%, due 2/01/24
|
Baa3 | BBB | 6,780,382 | ||||||
| 8,850,000 |
Southern Union Co.
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|
8¼%, due 11/15/29 |
Baa3 | BBB | 9,843,820 | ||||||
| 10,000,000 |
TE Products Pipeline Co.
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|
7.51%, due 1/15/28
|
Baa3 | BBB- | 10,445,940 | ||||||
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| 295,756,836 | |||||||||
|
n TELECOMMUNICATION—17.5%
|
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| 17,200,000 |
AT&T Wireless Services Inc.
|
||||||||
|
7½%, due 5/01/07 |
Baa1 | A | 17,402,289 | ||||||
| 11,500,000 |
Alltel Corp.
|
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|
77/8%, due 7/01/32 |
A2 | A- | 13,035,434 | ||||||
| 15,098,000 |
BellSouth Capital Funding Corp.
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|
7¾%, due 2/15/10 |
A2 | A | 16,168,886 | ||||||
| 10,000,000 |
BellSouth Capital Funding Corp.
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|
77/8%, due 2/15/30 |
A2 | A | 11,426,990 | ||||||
| 22,000,000 |
British Telecom PLC
|
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|
83/8%, due 12/15/10 |
Baa1 | BBB+ | 24,676,080 | ||||||
| 15,000,000 |
Centurytel Inc.
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|
83/8%, due 10/15/10 |
Baa2 | BBB | 16,328,655 | ||||||
| 15,000,000 |
Centurytel Inc.
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|
67/8%, due 1/15/28 |
Baa2 | BBB | 14,485,185 | ||||||
| 5,645,000 |
Comcast Cable Communications Inc.
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|
83/8%, due 5/01/07 |
Baa2 | BBB+ | 5,741,518 | ||||||
| 13,900,000 |
Comcast Corp.
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|
7.05%, due 3/15/33
|
Baa2 | BBB+ | 14,930,671 | ||||||
| 10,000,000 |
France Telecom SA
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|
73/4%, due 3/01/11 |
A3 | A- | 10,966,040 | ||||||
The accompanying notes are an integral part of the financial statement.
9
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
| Ratings | |||||||||
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| Standard | Market | ||||||||
| and | Value | ||||||||
| Par Value | Moody’s | Poor’s | (Note 1) | ||||||
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| $ 17,625,000 | GTE Corp. | ||||||||
| 7.90%, due 2/01/27 | Baa1 | A | $ | 18,381,025 | |||||
| 17,000,000 | Koninklijke KPN NV | ||||||||
| 8%, due 10/01/10 | Baa2 | BBB+ | 18,382,117 | ||||||
| 15,000,000 | Koninklijke KPN NV | ||||||||
| 83/8%, due 10/01/30 | Baa2 | BBB+ | 17,243,835 | ||||||
| 24,104,000 | Nextel Communications Corp. | ||||||||
| 73/8%, due 8/01/15 | Baa3 | BBB+ | 24,894,105 | ||||||
| 10,000,000 | Sprint Capital Corp. | ||||||||
| 83/8%, due 3/15/12 | Baa3 | BBB+ | 11,220,220 | ||||||
| 10,000,000 | TCI Communications Inc. | ||||||||
| 83/4%, due 8/01/15 | Baa2 | BBB+ | 11,860,320 | ||||||
| 32,000,000 | Telecom Italia Capital | ||||||||
| 7.20%, due 7/18/36 | Baa2 | BBB+ | 32,991,776 | ||||||
| 15,000,000 | Telefonica Emisiones SAU | ||||||||
| 7.045%, due 6/20/36 | Baa1 | BBB+ | 15,880,665 | ||||||
| 11,500,000 | Telefonica Europe BV | ||||||||
| 73/4%, due 9/15/10 | Baa1 | BBB+ | 12,425,842 | ||||||
| 5,000,000 | Telefonica Europe BV | ||||||||
| 81/4%, due 9/15/30 | Baa1 | BBB+ | 5,971,320 | ||||||
| 10,000,000 | Telus Corp. | ||||||||
| 71/2%, due 6/01/07 | Baa2 | BBB+ | 10,132,060 | ||||||
| 10,500,000 | Verizon Global Funding Corp. | ||||||||
| 73/4%, due 12/01/30 | A3 | A | 12,071,682 | ||||||
| 20,000,000 | Vodafone Group PLC | ||||||||
| 73/4%, due 2/15/10 | A3 | A- | 21,461,760 | ||||||
| 5,000,000 | Vodafone Group PLC | ||||||||
| 77/8%, due 2/15/30 | A3 | A- | 5,879,790 | ||||||
|
|
|
||||||||
| 363,958,265 | |||||||||
The accompanying notes are an integral part of the financial statement.
10
DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
| Ratings | ||||||||||
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| Standard |
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| and |
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| Par Value | Moody’s | Poor’s |
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| n NON-UTILITY—11.4% |
||||||||||
| #$ | 30,000,000 | Bank of America, NA | ||||||||
| 5.43%, due 6/13/07 | Aa1 | AA | $ | 30,010,410 | ||||||
| 8,000,000 | Dayton Hudson Corp. | |||||||||
| 97/8%, due 7/01/20 | A1 | A+ | 11,342,936 | |||||||
| 9,600,000 | Duke Realty LP | |||||||||
| 6.80%, due 2/12/09 | Baa1 | BBB+ | 9,892,627 | |||||||
| 10,000,000 | EOP Operating LP | |||||||||
| 73/4%, due 11/15/07 | Baa2 | BBB | 10,246,140 | |||||||
| 100,000,000 | Federal National Mortgage Association | |||||||||
| 71/2%, due 7/18/08 | Aaa | AAA | 100,645,100 | |||||||
| # | 25,000,000 | Harrier Finance Funding LLC | ||||||||
| 5.32%, due 11/15/06 | Aaa | AAA | 24,998,991 | |||||||
| # | 25,000,000 | Premier Asset Collateralized Entity LLC | ||||||||
| 5.36%, due 4/25/07 | Aaa | AAA | 25,006,850 | |||||||
| # | 25,000,000 | Stanfield Victoria Funding LLC | ||||||||
| 5.33%, due 1/22/07 | Aaa | AAA | 25,003,225 | |||||||
|
|
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|||||||||
| 237,146,279 | ||||||||||
|
|
|
|||||||||
| Total Bonds (Cost—$908,240,008) | 896,861,380 | |||||||||
|
|
|
|||||||||
The accompanying notes are an integral part of the financial statement.
11
DNP SELECT INCOME FUND INC.
STATEMENT
OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
SHORT-TERM INSTRUMENTS—35.1%
| Market | ||||||
| Par Value/ | Value | |||||
| Shares | (Note 1) | |||||
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||||
| #$ | 7,785,954 | AIM STIC Liquid Assets Portfolio | $ | 7,785,954 | ||
| # | 5,000,000 | Banc of America Securities LLC Repurchase Agreement, 5.415%, | ||||
| dated 9/29/06, due 10/02/06, with a repurchase price of $5,002,256 | ||||||
| and collateralized by $5,100,000 market value of corporate bonds | ||||||
| having an average coupon rate of 6.50% and an original weighted | ||||||
| average maturity of 1/15/12 | 5,000,000 | |||||
| # | 125,000,000 | BNP Paribas Securities Repurchase Agreement, 5.425%, dated 9/29/06, | ||||
| due 10/02/06, with a repurchase price of $125,056,510 and collateralized | ||||||
| by $127,500,001 market value of asset-backed securities (ABS) and | ||||||
| corporate bonds having an average coupon rate of 5.98% and an original | ||||||
| weighted average maturity of 10/16/16 | 125,000,000 | |||||
| # | 50,000,000 | Citigroup Global Markets Inc. Master Note | ||||
| 5.45%, due 10/02/06 | 50,000,000 | |||||
| # | 120,000,000 | Credit Suisse First Boston LLC Repurchase Agreement, 5.425%, | ||||
| dated 9/29/06, due 10/02/06, with a repurchase price of $120,054,250 | ||||||
| and collateralized by $122,403,118 market value of ABS having an | ||||||
| average coupon rate of 6.57% and an original weighted average | ||||||
| maturity of 6/03/36 | 120,000,000 | |||||
| # | 90,000,000 | Dresdner Kleinwort Wasserstein Securities LLC Repurchase Agreement, | ||||
| 5.425%, dated 9/29/06, due 10/02/06, with a repurchase price of | ||||||
| $90,040,688 and collateralized by $91,804,313 market value of corporate | ||||||
| bonds having an average coupon rate of 5.33% and an original weighted | ||||||
| average maturity of 8/19/18 | 90,000,000 | |||||
| # | 18,560,000 | Fenway Funding LLC | ||||
| 5.44%, due 10/02/06 | 18,557,195 | |||||
| # | 113,000,000 | Goldman Sachs & Co. Repurchase Agreement, 5.445%, dated 9/29/06, | ||||
| due 10/02/06, with a repurchase price of $113,051,274 and collateralized | ||||||
| by $115,260,001 market value of ABS and collateralized mortgage | ||||||
| obligations (CMOs) having an average coupon rate of 5.47% and an | ||||||
| original weighted average maturity of 2/21/35 | 113,000,000 | |||||
| # | 50,000,000 | Greenwich Capital Markets Inc. Repurchase Agreement, 5.455%, | ||||
| dated 9/29/06, due 10/02/06, with a repurchase price of $50,022,729 | ||||||
| and collateralized by $51,005,043 market value of CMOs having an | ||||||
| average coupon rate of 4.74% and an original weighted average | ||||||
| maturity of 5/28/27 | 50,000,000 | |||||
The accompanying notes are an integral part of the financial statement.
12
DNP SELECT INCOME FUND INC.
STATEMENT
OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
|
|
|||||||
| Par Value/ |
|
||||||
| Shares |
|
||||||
|
|
|
|
|
||||
| #$ | 100,000,000 | Lehman Brothers Inc. Repurchase Agreement, 5.425%, | |||||
| dated 9/29/06, due 10/02/06, with a repurchase price of | |||||||
| $100,045,208 and collateralized by $102,002,311 market value | |||||||
| of CMOs and corporate bonds having an average coupon rate of | |||||||
| 4.99% and an original weighted average maturity of 4/18/21 | $ | 100,000,000 | |||||
| # | 50,000,000 | Nomura Securities International Inc. Repurchase Agreement, | |||||
| 5.425%, dated 9/29/06, due 10/02/06, with a repurchase price of | |||||||
| $50,022,604 and collateralized by $51,000,000 market value of | |||||||
| CMOs and corporate bonds having an average coupon rate of 5.17% | |||||||
| and an original weighted average maturity of 7/09/39 | 50,000,000 | ||||||
|
|
|
||||||
| Total Short-Term Instruments (Amortized Cost—$729,343,149) | 729,343,149 | ||||||
|
|
|
||||||
| Total Investments—187.3% (Cost—$3,508,761,306) | 3,895,931,574 | ||||||
|
|
|
||||||
| OTHER ASSETS LESS LIABILITIES—(63.3%) | (1,316,012,681 | ) | |||||
|
|
|
||||||
| AUCTION PREFERRED STOCK—(24.0%) | |||||||
| (12,000 shares issued and outstanding; liquidation preference $25,000 per share) | (500,000,000 | ) | |||||
|
|
|||||||
| NET ASSETS APPLICABLE TO COMMON STOCK—100.0% | |||||||
| (equivalent to $9.21 per share of common stock based on 225,866,244 shares | |||||||
| of common stock outstanding; authorized 250,000,000 shares) | 2,079,918,893 | ||||||
|
|
|||||||
| # 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. | |||||||
The accompanying notes are an integral part of the financial statement.
13
DNP SELECT INCOME
FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2006
| (1) | Equity securities traded on a national or foreign securities exchange or traded over-the-counter and quoted on the NASDAQ System are valued at the last reported sales price, or if there was no sale on the pricing date, then the security is valued at the mean of the bid and ask prices as obtained on that day from one or more dealers regularly making a market in that security. Fixed income securities are valued at the mean of bid and ask prices provided by an independent pricing service when such prices are believed to reflect the fair market value of such securities. Such bid and ask prices are determined taking into account securities prices, yields, maturities, call features, ratings, and institutional size trading in similar securities and developments related to specific securities. Any 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. Short-term investments having a maturity of 60 days or less are valued on an amortized cost basis, which approximates market value. |
| (2) | At December 31, 2005, the Fund’s most recent fiscal tax year end, based on a tax cost of investments of $3,010,132,491, the Fund had gross unrealized appreciation of $362,153,165 and gross unrealized depreciation of $83,919,490. |
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 | |
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 20, 2006 |
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 20, 2006 | |
| By (Signature and Title) | /s/ JOSEPH C. CURRY, JR. | |
| Joseph C. Curry, Jr. | ||
| Senior Vice President and Treasurer | ||
| Date | November 20, 2006 |