Duff & Phelps Utility and Corporate Bond Trust Inc. (the "Fund"), a diversified closed-end investment company, first offered its common stock to the public in January of 1993.
The Fund's investment objective is high current income consistent with investing in securities of investment grade quality. DUC utilizes a bank loan to leverage the common stockholders’ investment.
The Fund seeks to achieve its investment objective by investing substantially all of its assets in a diversified portfolio of Income Securities. As used in the Fund's prospectus, Income Securities consist of Utility Income Securities, Corporate Income Securities, Mortgage-Backed Securities and Asset-Backed Securities (each as defined in the prospectus). In normal market conditions, at least 80% of the Fund's total assets will be invested, in the aggregate, in Utility and Corporate Bonds, and at least 25% of the Fund's total assets will be invested in Utility Income Securities.
Industry Allocation as a Percentage of Total Investments2
As of 10/31/20 (Unaudited)
Summary of Ratings as a Percentage of Long-Term Investments2,3
As of 10/31/20 (Unaudited)
Dividends are currently paid monthly. Common Stockholders are automatically enrolled in the Fund's Dividend Reinvestment Plan, under which distributions of dividends and capital gains will automatically be reinvested in additional shares of Common Stock, unless an election is made to receive such distributions in cash. At the time of purchase, such an election may be made by giving written notice to the Plan Agent. Common Stockholders who intend to hold their shares through a broker or nominee should contact such broker or nominee in order to opt out of the Dividend Reinvestment Plan. For more information, contact Computershare Trust Company, N.A. at (866) 221-1681 or www.computershare.com/investor.
Dividend Distribution Information
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1 To be paid only if previously announced merger with DNP Select Income Fund Inc. is not consummated prior to March 12, 2021. The merger announcement was made in a separate press release dated November 23, 2020.
SEC 19(a) Shareholder Notice
Important Tax Information
Important Risk Considerations
Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.
Foreign Investing: Investing internationally involves additional risks such as currency, political, accounting, economic, and market risk.
No Guarantee: There is no guarantee that the portfolio will meet its objective.
Leverage: When a fund leverages its portfolio, the value of its shares may be more volatile and all other risks may be compounded.
Market Volatility: Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.
This information does not represent an offer, or the solicitation of an offer, to buy or sell securities of the Fund.
1Net Asset Value vs. Market Price: Net Asset Value (NAV) represents the total value of all assets held by the Fund (minus its total liabilities), divided by the total number of common shares outstanding. The net asset value returns reflect the performance of the manager. Market price is the price at which investors may purchase or sell shares of the Fund. Market price is determined in the open market by buyers and sellers, based on supply and demand. The Fund’s Market Price fluctuates throughout the day and may differ from its underlying NAV. Shares of the Fund may trade at a premium (higher than) or a discount (lower than) to NAV. This characteristic is a risk separate and distinct from the risk that the Fund’s net asset value could decline. The Fund has no control over the market price
2Percentages based on total investments rather than total net assets. The portfolio is actively managed and subject to change.
3The ratings issued by Nationally Recognized Statistical Rating Organizations assess the credit worthiness of a corporation’s or government’s debt issues. The ratings apply to the Fund’s holdings and not the Fund itself. The lower rating of Moody’s Investor Service, Inc. or Standard & Poor’s Financial Services LLC is used. If a particular security is rated by either Moody’s or S&P, but not both, then the single rating is used. If a particular security is not rated by either Moody’s or S&P, a rating from Fitch Ratings Ltd. is used, if available. Ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB and below are below-investment grade ratings.