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
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(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
(Name and address of agent for service)
Registrant's telephone number, including area code: 630-765-8000
Date of fiscal year end: November 30
Date of reporting period: February 28, 2010
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 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. Section 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)
FEBRUARY 28, 2010 (UNAUDITED)
SHARES DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
COMMON STOCKS - 78.8%
AUSTRALIA - 22.0%
2,061,906 Asciano Group (b) (c) .............................. $ 3,326,192
1,414,575 Australian Infrastructure Fund (b) ................. 2,345,328
657,801 MAP Group .......................................... 1,839,310
8,055,728 SP AusNet (b) ...................................... 6,822,484
6,953,745 Spark Infrastructure Group (b) (d) ................. 8,849,384
1,291,115 Transurban Group (b) ............................... 6,063,203
------------
29,245,901
------------
CANADA - 4.3%
58,793 Enbridge, Inc. (b) ................................. 2,606,069
93,127 TransCanada Corp. (b) .............................. 3,078,271
------------
5,684,340
------------
FRANCE - 8.6%
64,115 Aeroports de Paris (b) ............................. 5,063,549
62,564 GDF Suez ........................................... 2,297,591
76,159 Vinci S.A. (b) ..................................... 3,987,355
------------
11,348,495
------------
GERMANY - 7.0%
75,777 E.On AG (b) ........................................ 2,698,730
51,331 Fraport AG (b) ..................................... 2,584,024
108,380 Hamburger Hafen Und Logistik AG (b) ................ 4,034,735
------------
9,317,489
------------
ITALY - 8.0%
245,023 Atlantia SpA (b) ................................... 5,651,811
341,068 Snam Rete Gas SpA (b) .............................. 1,613,850
825,192 Terna SpA (b) ...................................... 3,390,546
------------
10,656,207
------------
JAPAN - 1.4%
431,155 Tokyo Gas Co. Ltd. ................................. 1,878,068
------------
NEW ZEALAND - 1.1%
1,077,675 Auckland International Airport, Ltd. (b) ........... 1,400,431
------------
SPAIN - 11.4%
228,328 Abertis Infraestructuras S.A. (b) .................. 4,302,913
219,095 Enagas S.A. (b) .................................... 4,570,446
123,718 Red Electrica Corp. S.A. (b) ....................... 6,226,331
------------
15,099,690
------------
SWITZERLAND - 1.2%
5,483 Flughafen Zuerich AG (b) ........................... 1,633,288
------------
UNITED KINGDOM - 5.0%
375,916 Severn Trent plc (b) ............................... 6,677,787
------------
See Notes to Quarterly Portfolio of Investments
Page 1
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2010 (UNAUDITED)
SHARES DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
COMMON STOCKS - (CONTINUED)
UNITED STATES - 8.8%
81,764 ITC Holdings Corp. (b) ............................. $ 4,364,562
103,229 Northeast Utilities (b) ............................ 2,642,662
25,000 PG&E Corp .......................................... 1,048,000
44,088 SemGroup Corp., Class A (c) ........................ 1,022,291
117,300 Spectra Energy Corp. (b) ........................... 2,557,140
------------
11,634,655
------------
TOTAL COMMON STOCKS
(Cost $101,783,800) ................................ 104,576,351
------------
SHARES/
UNITS DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
MASTER LIMITED PARTNERSHIPS - 10.8%
UNITED STATES - 10.8%
66,216 Energy Transfer Partners, L.P. (b) ................. 3,064,477
176,950 Enterprise Products Partners, L.P. (b) ............. 5,796,882
121,281 Magellan Midstream Partners, L.P. (b) .............. 5,486,752
------------
TOTAL MASTER LIMITED PARTNERSHIPS
(Cost $10,798,223) ................................. 14,348,111
------------
CANADIAN INCOME TRUSTS - 9.0%
327,110 Consumers' Waterheater Income Fund (b) ............. 1,684,980
389,397 Northland Power Income Fund (b) .................... 4,796,222
311,449 Pembina Pipeline Income Fund (b) ................... 5,342,762
9,300 Pembina Pipeline Income Fund (b) (d) ............... 159,537
------------
TOTAL CANADIAN INCOME TRUSTS
(Cost $9,075,287) .................................. 11,983,501
------------
PRINCIPAL RATINGS (e) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (f) MATURITY (g) VALUE
---------- ---------------------------------------------------- ------- ------ ------------- ------------ ------------
SENIOR FLOATING-RATE LOAN INTERESTS - 28.4%
CABLE & SATELLITE - 3.0%
$1,492,405 Charter Communications Operating, LLC,
Incremental Term Loan ........................... Ba2 BB+ 7.25% 03/06/14 1,514,781
1,492,248 CSC Holdings, Inc.,
Term Loan, Extended Maturity .................... Baa3 BBB- 2.00% - 2.05% 03/29/16 1,473,129
324,144 UPC Broadband Holdings B.V.,
Term Loan N ..................................... Ba3 B+ 2.18% 12/31/14 306,991
675,856 UPC Broadband Holdings B.V.,
Term Loan T ..................................... Ba3 B+ 3.93% 12/31/16 656,932
------------
3,951,833
------------
ELECTRIC UTILITIES - 7.3%
1,467,766 Astoria Generating Co.,
Acquisitions, LLC, Term Loan B .................. B1 BB- 2.00% - 2.01% 02/23/12 1,422,265
1,494,272 Calpine Corp.,
First Priority Term Loan ........................ B2 B+ 3.14% 03/29/14 1,402,367
See Notes to Quarterly Portfolio of Investments
Page 2
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2010 (UNAUDITED)
PRINCIPAL RATINGS (e) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (f) MATURITY (g) VALUE
---------- ---------------------------------------------------- ------- ------ ------------- ------------ ------------
SENIOR FLOATING-RATE LOAN INTERESTS - (CONTINUED)
ELECTRIC UTILITIES - (CONTINUED)
$ 319,848 Covanta Energy Corp.,
Synthetic Letter of Credit ...................... Ba1 BB 1.75% 02/09/14 $ 304,655
631,825 Covanta Energy Corp.,
Term Loan B ..................................... Ba1 BB 1.75% 02/09/14 601,813
1,000,000 Mirant North America, LLC,
Revolver ........................................ Ba2 BB 1.98% 01/14/12 925,833
993,570 Mirant North America, LLC,
Term Loan ....................................... Ba2 BB 1.98% 01/03/13 949,923
2,025,275 NRG Energy, Inc., Synthetic
Letter of Credit ................................ Baa3 BB+ 2.00% 02/01/13 1,953,700
592,223 NRG Energy, Inc., Term Loan B ...................... Baa3 BB+ 1.97% - 2.00% 02/01/13 571,294
1,007,806 Riverside Energy Center, LLC,
Term Loan ....................................... Ba3 BB- 4.50% 06/24/11 1,000,248
99,979 Rocky Mountain Energy Center, LLC,
Letter of Credit ................................ Ba3 BB- 4.60% 06/24/11 99,229
392,215 Rocky Mountain Energy Center, LLC,
Term Loan ....................................... Ba3 BB- 4.50% 06/24/11 389,273
------------
9,620,600
------------
ENVIRONMENTAL & FACILITIES SERVICES - 1.5%
18,020 EnergySolutions, LLC,
Synthetic Letter of Credit ...................... Ba2 NR (h) 3.98% 06/07/13 17,660
1,641,509 EnergySolutions, LLC,
Synthetic Letter of Credit,
Add-On .......................................... Ba2 NR (h) 3.98% 08/09/13 1,608,679
121,316 EnergySolutions, LLC,
Term Loan (Duratek) ............................. Ba2 NR (h) 4.01% 06/07/13 118,889
227,755 EnergySolutions, LLC,
Term Loan (EnergySolutions) ..................... Ba2 NR (h) 4.01% 06/07/13 223,200
------------
1,968,428
------------
GAS UTILITIES - 0.6%
817,303 Atlas Pipeline Partners, L.P.,
Term Loan ....................................... B1 B 6.75% 07/27/14 812,195
------------
HEALTH CARE FACILITIES - 3.1%
1,882,437 HCA Inc., Term Loan B .............................. Ba3 BB 2.50% 11/18/13 1,786,389
797,184 Health Management
Associates Inc., Term Loan B .................... B1 BB- 2.00% 02/28/14 751,235
945,840 Lifepoint Hospitals Inc.,
Term Loan B ..................................... Ba1 BB 1.89% 04/15/12 928,612
673,949 Select Medical Corp.,
Term Loan B-1 ................................... Ba2 BB- 4.00% 08/22/14 659,908
------------
4,126,144
------------
HEALTH CARE SERVICES - 1.0%
71,494 CHS/Community Health
Systems, Inc.,
Delayed Draw Term Loan .......................... Ba3 BB 2.50% 07/25/14 66,803
See Notes to Quarterly Portfolio of Investments
Page 3
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2010 (UNAUDITED)
PRINCIPAL RATINGS (e) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (f) MATURITY (g) VALUE
---------- ---------------------------------------------------- ------- ------ ------------- ------------ ------------
SENIOR FLOATING-RATE LOAN INTERESTS - (CONTINUED)
HEALTH CARE SERVICES - (CONTINUED)
$1,398,779 CHS/Community Health Systems, Inc.,
Term Loan ....................................... Ba3 BB 2.48% - 2.50% 07/25/14 $ 1,306,984
------------
1,373,787
------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 4.2%
797,748 Bicent Power, LLC,
Term Loan First Lien ............................ B1 BB- 2.26% 06/30/14 725,286
63,395 Coleto Creek Power, L.P.,
Synthetic Letter of Credit ...................... B1 B+ 3.00% 06/28/13 57,254
826,350 Coleto Creek Power, L.P.,
Term Loan First Lien ............................ B1 B+ 2.98% - 3.00% 06/28/13 746,298
1,000,000 Dynegy Holdings Inc.,
Synthetic Letter of Credit ...................... Ba2 BB- 3.98% 04/02/13 975,893
933,333 Longview Power, LLC,
Delayed Draw Term Loan .......................... Ba3 BB 2.56% 02/28/14 854,000
266,667 Longview Power, LLC,
Synthetic Letter of Credit ...................... Ba3 BB 2.56% 02/28/14 244,000
800,000 Longview Power, LLC,
Term Loan B ..................................... Ba3 BB 2.56% 02/28/14 732,000
1,500,000 Texas Competitive Electric Holdings Co., LLC,
Initial Term Loan B3 ............................ B1 B+ 3.73% - 3.75% 10/10/14 1,200,000
------------
5,534,731
------------
MANAGED HEALTH CARE - 3.2%
705,101 IASIS Healthcare Corp.,
Delayed Draw Term Loan .......................... Ba2 B+ 2.23% 03/15/14 671,314
190,890 IASIS Healthcare Corp.,
Synthetic Letter of Credit ...................... Ba2 B+ 2.23% 03/15/14 181,743
2,037,407 IASIS Healthcare Corp.,
Term Loan ....................................... Ba2 B+ 2.23% 03/15/14 1,939,780
1,500,000 Vanguard Health Systems Inc.,
Term Loan B ..................................... Ba2 B+ 5.00% 01/29/16 1,501,875
------------
4,294,712
------------
MULTI-UTILITIES - 1.4%
2,000,000 KGEN, LLC, Synthetic
Letter of Credit ................................ B1 BB 2.06% 02/08/14 1,870,000
------------
OIL & GAS EQUIPMENT & SERVICES - 0.2%
250,000 Targa Resources, Inc., Term Loan ................... Ba3 BB- 6.00% 07/15/16 250,625
------------
OIL & GAS EXPLORATION & PRODUCTION - 0.6%
475,000 SemCrude, L.P., Prefunded Synthetic
Letter of Credit ................................ NR NR 8.41% 11/30/12 470,449
25,000 SemCrude, L.P., Prefunded Synthetic
Letter of Credit (OID) .......................... NR NR 8.50% 11/30/12 24.760
346,889 SemCrude, L.P., Term Loan Second
Lien ............................................ NR NR 9.00% (i) 11/30/16 341,469
------------
836,678
------------
See Notes to Quarterly Portfolio of Investments
Page 4
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2010 (UNAUDITED)
PRINCIPAL RATINGS (e) STATED
VALUE DESCRIPTION MOODY'S S&P RATE (f) MATURITY (g) VALUE
---------- ---------------------------------------------------- ------- ------ ------------- ------------ ------------
SENIOR FLOATING-RATE LOAN INTERESTS - (CONTINUED)
OIL & GAS STORAGE & TRANSPORTATION - 1.5%
$1,000,000 Energy Transfer Equity, L.P.,
Term Loan B ..................................... Ba2 NR 1.98% 11/01/12 $ 986,243
1,000,000 Enterprise GP Holdings, LP
Term Loan B ..................................... Ba2 BB- 2.48% - 2.50% 11/08/14 986,667
------------
1,972,910
------------
WIRELESS TELECOMMUNICATION SERVICES - 0.8%
1,060,219 Windstream Corp.,
Term Loan B2 .................................... Baa3 BB+ 3.01% 12/17/15 1,048,860
------------
TOTAL SENIOR FLOATING-RATE LOAN INTERESTS
(Cost $38,557,701) ................................................................................. 37,661,503
------------
TOTAL INVESTMENTS - 127.0%
(Cost $160,215,011) (j) ............................................................................ 168,569,466
OUTSTANDING LOAN - (30.2)% ......................................................................... (40,000,000)
NET OTHER ASSETS AND LIABILITIES - 3.2% ............................................................ 4,183,229
------------
NET ASSETS - 100.0% ................................................................................ $132,752,695
============
----------
(a) All percentages shown in the Portfolio of Investments are based on net
assets.
(b) All or a portion of this security is available to serve as collateral on
the outstanding loan.
(c) Non-income producing security.
(d) This security is restricted and cannot be offered for public sale without
first being registered under the Securities Act of 1933, as amended. Prior
to registration, restricted securities may only be resold in transactions
exempt from registration. (See Note E - Restricted Securities in the Notes
to Quarterly Portfolio of Investments).
(e) Ratings below Baa3 by Moody's Investors Service, Inc. or BBB- by Standard &
Poor's Ratings Group are considered to be below investment grade.
(f) Senior Loans in which the Fund invests generally 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.
(g) 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.
(h) This Senior Loan Interest was privately-rated upon issuance. The rating
agency does not provide ongoing surveillance on the rating.
(i) Interest for the period commencing on November 30, 2009 ending on December
31, 2011, shall be payable, at the Borrowers' option, (i) in cash at a rate
per annum equal to 9% ("Cash Interest") or (ii) in Payment-in-Kind interest
at a rate per annum equal to 11%, and, commencing January 1, 2012, shall be
payable as Cash Interest.
(j) Aggregate cost for financial reporting purposes, which approximates the
aggregate cost for federal income tax purposes. As of February 28, 2010,
the aggregate gross unrealized appreciation for all securities in which
there was an excess of value over tax cost was $14,561,106 and the
aggregate gross unrealized depreciation for all securities in which there
was an excess of tax cost over value was $6,206,651.
NR Not Rated
See Notes to Quarterly Portfolio of Investments
Page 5
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
FEBRUARY 28, 2010 (UNAUDITED)
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of February 28,
2010 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
02/28/2010 PRICES INPUTS INPUTS
------------ ------------ ----------- ------------
Common Stocks * ......................... $104,576,351 $104,576,351 $ -- $--
Master Limited Partnerships * ........... 14,348,111 14,348,111 -- --
Canadian Income Trusts .................. 11,983,501 11,983,501 -- --
Senior Floating-Rate Loan Interests * ... 37,661,503 -- 37,661,503 --
------------ ------------ ----------- ---
Total Investments ....................... $168,569,466 $130,907,963 $37,661,503 $--
============ ============ =========== ===
* See the Portfolio of Investments for country or industry breakout.
% OF TOTAL
INDUSTRY CLASSIFICATION (1) INVESTMENTS
--------------------------- -----------
Transportation Infrastructure 22.7%
Gas Utilities 18.4
Electric Utilities 15.5
Multi-Utilities 7.2
Water Utilities 4.0
Power Generation 2.8
Construction & Engineering 2.4
Oil, Gas & Consumable Fuels 2.1
Energy Equipment & Services 1.6
Diversified Consumer Services 1.0
----
Total 77.7%
====
(1) Represents the industry classification breakdown for the Core Component of
the Fund's portfolio, which includes Common Stock, Master Limited
Partnerships and Canadian Income Trust securities. It excludes the Senior
Loan Component of the Fund's portfolio, which industry classifications are
disclosed in the Portfolio of Investments and makes up the remaining 22.3%
of the Fund's portfolio.
See Notes to Quarterly Portfolio of Investments
Page 6
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FEBRUARY 28, 2010 (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.
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 at market value or, in the absence of
market value with respect to any portfolio securities, at fair value according
to procedures adopted by the Fund's Board of Trustees. A majority of the Fund's
assets are valued using market information supplied by third parties. In the
event that market quotations are not readily available, the pricing service does
not provide a valuation for a particular asset, or the valuations 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
and other investments. Additionally, if events occur after the close of the
principal markets for particular securities (e.g., domestic debt and foreign
securities), but before the Fund values its assets, that could materially affect
NAV, First Trust may use a fair value method to value the Fund's securities and
other investments. The use of fair value pricing by the Fund is governed by
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with the provisions of the Investment Company Act of 1940, as amended (the "1940
Act").
Portfolio securities listed on any exchange other than the NASDAQ National
Market ("NASDAQ") or the London Stock Exchange Alternative Investment Market
("AIM") are valued at the last sale price on the business day as of which such
value is being determined. If there has been no sale on such day, or no official
closing price in the case of securities traded on the NASDAQ or the AIM, the
securities are valued at the mean of the most recent bid and asked prices on
such day. Securities listed on the NASDAQ or the AIM are valued at the official
closing price on the business day as of which such value is being determined.
Portfolio securities listed on more than one securities exchange are valued at
the last sale price on the business day as of which such value is being
determined at the close of the exchange representing the principal market for
such securities. Portfolio securities traded in the over-the-counter market, but
excluding securities traded on the NASDAQ or the AIM, are valued at the closing
bid prices. Short-term investments that mature in less than 60 days when
purchased are valued at amortized cost.
Foreign securities traded outside the United States are generally valued as of
the time their 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. 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 Loans 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 in the past several years, generally has fewer trades and less
liquidity than the secondary market for other types of securities. Some Senior
Loans have few or no trades, or 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, 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. If the pricing
service cannot or does not 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.
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:
Page 7
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FEBRUARY 28, 2010 (UNAUDITED)
- 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.
- Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
- Quoted prices for similar securities in active markets.
- 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.
- Inputs other than quoted prices that are observable for the
security (for example, interest rates and yield curve
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and
default rates).
- Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
- Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs
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 February 28, 2010 is
included with the Fund's Portfolio of Investments.
B. REPURCHASE AGREEMENTS:
The Fund engages in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at all times at least equal to the total
amount of the repurchase obligation, including interest. In the event of
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is a potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including risk of possible decline in the value of the underlying
securities during the period while the Fund seeks to assert its rights. The Fund
reviews the value of the collateral and the creditworthiness of those banks and
dealers with which the Fund enters into repurchase agreements to evaluate
potential risks. As of February 28, 2010, the Fund had no open repurchase
agreements.
C. 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 the 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 or delayed-delivery basis may be
settled a month or more after the trade date; interest income on such securities
is not accrued until settlement date. The Fund maintains liquid assets with a
current value at least equal to the amount of its when-issued or
delayed-delivery purchase commitments. As of February 28, 2010, the Fund had no
when-issued or delayed-delivery purchase commitments.
D. UNFUNDED LOAN COMMITMENTS:
The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. As of February 28, 2010, the Fund had no unfunded loan commitments.
Page 8
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FEBRUARY 28, 2010 (UNAUDITED)
E. RESTRICTED SECURITIES:
The Fund invests in restricted securities, which are securities that cannot be
offered for public sale without first being registered under the Securities Act
of 1933, as amended. Prior to registration, restricted securities may only be
resold in transactions exempt from registration. The Fund held restricted
securities at February 28, 2010 as shown in the following table. The Fund does
not have the right to demand that such securities be registered. These
securities are valued using market quotations according to the valuation
procedures as stated in the Portfolio Valuation footnote (Note A) and are not
expressed as a discount to the carrying value of a comparable unrestricted
security.
ACQUISITION SHARES/ % OF
SECURITY DATE UNITS PRICE CARRYING COST VALUE NET ASSETS
-------- ----------- --------- ------ ------------- ---------- ----------
Pembina Pipeline Income Fund 4/30/09 9,300 $17.15 $ 101,759 $ 159,537 0.12%
Spark Infrastructure Group 12/14/05 6,953,745 1.27 8,183,817 8,849,384 6.67
---------- ---------- ----
$8,285,576 $9,008,921 6.79%
========== ========== ====
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 April 21, 2010
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 April 21, 2010
By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------
Mark R. Bradley, Treasurer, Controller,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date April 21, 2010
* Print the name and title of each signing officer under his or her
signature.