The Duff & Phelps Utility and Infrastructure Fund Inc. (NYSE: DPG) is a non-diversified, closed-end investment company initially offered to the public in July 2011. The Fund’s investment objective is to seek total return, resulting primarily from (i) a high level of current income, with an emphasis on providing tax-advantaged dividend income, and (ii) growth in current income, and secondarily from capital appreciation.
The Fund seeks to achieve its investment objectives by investing primarily in equities of domestic and foreign utilities and infrastructure providers. The Fund’s investment strategies endeavor to take advantage of the income and growth characteristics of equities in these industries. DPG has outstanding bank loan to leverage the common stockholders’ investment.
Under normal market conditions, the Fund will invest at least 80% of its total assets in dividend-paying equity securities of companies in the utility industry and the infrastructure industry. The utility industry is defined to include the following sectors: electric, gas, water, telecommunications, and midstream energy. The infrastructure industry is defined as companies owning or operating essential transportation assets, such as toll roads, bridges, tunnels, airports, seaports, and railroads.
Under normal market conditions, the Fund will invest no more than 60% of its total assets in any one of the five utility sectors. No more than 20% of the Fund’s total assets will be invested in securities of midstream energy companies that are not regulated by a governmental agency. In addition, under normal circumstances, the Fund will invest no more than 10% of its total assets in securities of any single issuer. No more than 15% of the Fund’s total assets will be invested in issuers located in “emerging market” countries.
Portfolio by Sector2
As of 10/31/21 (Unaudited). Due to rounding, percentages may not total 100%
Portfolio by Country2
As of 10/31/21 (Unaudited). Due to rounding, percentages may not total 100%
Top 10 Holdings2
As of 10/31/21 (Unaudited)
|NextEra Energy Inc.||6.6%|
|Norfolk Southern Corp||3.7%|
|Public Service Enterprise Group Inc.||3.1%|
|The Williams Cos Inc.||3.1%|
|EDP-Energias de Portugal SA||3.0%|
|Centerpoint Energy Inc||3.0%|
Dividend Distribution Information
The distributions listed in the table below reflect the amount of cash payment per share. A portion of the cash distribution represents return of capital. Any portion of the Fund’s distribution that is a return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. SEC 19(a) Shareholder Notices are available on this website on the page labeled “Reports & Notices”. Each 19(a) Shareholder Notice provides an estimate of the sources of each distribution based on U.S. generally accepted accounting principles which may differ from federal income tax regulations. On the webpage labeled “Tax Information”, we have posted the annual Tax Information Letter for each calendar year that informs shareholders of the sources of distributions for federal income tax purposes.
|Declaration date||Ex-date||Record date||Payable||Amount|
SEC 19(a) Shareholder Notice
Please note that the characterization of Fund distributions for federal income tax purposes is different from book accounting generally accepted accounting principles ("GAAP"). The amounts and sources of distributions reported in Section 19(a) notices of the 1940 Act are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during its fiscal year and may be subject to changes based on tax regulations. It is only after December 31 that we will know the exact source of our distributions. Shareholders should use only the Form 1099-DIV to determine the taxability of our distributions.
TAX INFORMATION - PLEASE READ CAREFULLY
These letters, showing the character of distributions paid by your Fund on its common stock and floating rate mandatory redeemable preferred shares ("MRP shares") for each calendar year, are sent to assist you and your tax professional in the preparation of your federal and state income tax returns. Each individual taxpayer should consult his or her own tax advisor for information related to your personal tax situation.
MRP Share Tax Information
Form 8937: Organizational Actions Affecting Basis of Securities
Issuers of corporate securities are required to complete Internal Revenue Service Form 8937 to report organizational actions that affect the basis of securities. Examples of organizational actions that could affect basis are reorganizations, stock splits or nontaxable distributions.
Important Risk Considerations
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events.
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. Conditions affecting the utility and infrastructure industries include general or local economic conditions, political developments, changes in regulations, environmental problems, casualty losses, and changes in interest rates.
Foreign Investing: Investing internationally involves additional risks such as currency, political, accounting, economic, and market risk.
MLPs: Investments in Master Limited Partnerships may be adversely impacted by tax law changes, regulation, or factors affecting underlying assets.
Listed & Unlisted Options: The writing of listed and unlisted call options on equities held by a fund (covered call-writing) may involve certain costs and risks such as liquidity, market, management, counterparty, and the risk that a position could not be closed when most advantageous.
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.
Effective November 22, 2019, the name of Duff & Phelps Global Utility Income Fund Inc. was changed to Duff & Phelps Utility and Infrastructure Fund Inc.
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.