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        811-4915  

                          DNP Select Income Fund Inc.                          

(Exact name of registrant as specified in charter)

  200 South Wacker Drive, Suite 500, Chicago, Illinois                60606  

(Address of principal executive offices)                        (Zip code)

Alan M. Meder Lawrence R. Hamilton, Esq.
DNP Select Income Fund Inc. Mayer Brown LLP
200 South Wacker Drive, Suite 500 71 South Wacker Drive
Chicago, Illinois 60606 Chicago, Illinois  60606

(Name and address of agents for service)

Registrant’s telephone number, including area code: (312) 368-5510

Date of fiscal year end: October 31

Date of reporting period: January 31, 2015

 
 
Item 1. Schedule of Investments.
   
  See the Statement of Net Assets below.

 

 
 

 DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS
JANUARY 31, 2015
(Unaudited)

 

     Value
Shares  Description (Note 1)
      
 COMMON STOCKS & MLP INTERESTS—113.4%     
          
     ELECTRIC, GAS AND WATER—72.8%    
 1,500,000   Alliant Energy Corp.(a) $102,915,000 
 1,800,000   Ameren Corp.  81,504,000 
 400,000   American Electric Power Company, Inc.  25,124,000 
 1,000,000   American Water Works Co.  56,140,000 
 3,071,300   CenterPoint Energy Inc.(a)  70,916,317 
 1,200,000   Cleco Corp.  65,232,000 
 2,500,000   CMS Energy Corp.(a)  94,325,000 
 1,100,000   Dominion Resources, Inc.(a)(b)  84,579,000 
 1,000,000   DTE Energy Co.(a)(b)  89,660,000 
 1,000,000   Duke Energy Corp.  87,140,000 
 2,500,000   Great Plains Energy Inc.(a)(b)  73,925,000 
 1,000,000   NextEra Energy, Inc.(a)(b)  109,240,000 
 2,000,000   NiSource Inc.  86,520,000 
 2,000,000   Northeast Utilities Inc.(a)(b)  111,160,000 
 800,000   Northwest Natural Gas Co.  39,928,000 
 2,300,000   OGE Energy Corp.  80,914,000 
 1,000,000   Piedmont Natural Gas Co.  39,890,000 
 2,000,000   Portland General Electric Co.  79,400,000 
 2,000,000   PPL Corp.(a)(b)  71,000,000 
 1,800,000   Public Service Enterprise Group Inc.(a)(b)  76,824,000 
 1,900,000   Questar Corp.(a)(b)  49,305,000 
 900,000   Sempra Energy(a)(b)  100,728,000 
 1,800,000   Southern Co.(a)(b)  91,296,000 
 1,500,000   Vectren Corp.(a)(b)  71,880,000 
 2,000,000   Westar Energy, Inc.(a)(b)  85,440,000 
 1,000,000   WGL Holdings Inc.  56,500,000 
 2,400,000   Xcel Energy Inc.(a)(b)  90,072,000 
        2,071,557,317 

 

 The accompanying notes are an integral part of this financial statement.

 
 

 DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
JANUARY 31, 2015
(Unaudited)

 

     Value
Shares  Description (Note 1)
      
     OIL & GAS STORAGE, TRANSPORTATION AND PRODUCTION—27.6%    
 306,800   Access Midstream Partners LP $15,876,900 
 305,000   Antero Midstream Partners LP  7,152,250 
 407,000   DCP Midstream Partners LP  15,274,710 
 229,800   Dominion Midstream Partners, LP  8,008,530 
 684,000   Enbridge Energy Partners LP  26,922,240 
 1,600,000   Enbridge Inc. (Canada)(a)(b)  77,488,000 
 596,000   Energy Transfer Equity LP  35,414,320 
 350,000   Energy Transfer Partners LP  21,490,000 
 700,000   EnLink Midstream Partners LP  20,076,000 
 766,000   Enterprise Products Partners LP  26,381,040 
 231,000   EQT Midstream Partners LP  19,600,350 
 380,000   GasLog Partners LP (Marshall Islands)  9,500,000 
 407,000   Genesis Energy LP  17,635,310 
 1,600,526   Kinder Morgan Inc.(a)  65,701,592 
 400,090   Magellan Midstream Partners LP  31,014,977 
 396,500   MarkWest Energy Partners LP  23,365,745 
 160,000   NuStar Energy LP  9,772,800 
 407,000   ONEOK Partners LP  16,825,380 
 475,610   Plains All American Pipeline LP  23,585,500 
 400,000   Plains GP Holdings LP-CL A  10,432,000 
 300,000   Seadrill Partners LLC (Marshall Islands)  4,125,000 
 165,625   Shell Midstream Partners LP  6,628,313 
 1,915,000   Spectra Energy Corp.(a)(b)  64,037,600 
 150,000   Summit Midsteam Partners LP  5,692,500 
 324,000   Sunoco Logistics Partners LP  13,517,280 
 400,000   Tallgrass Energy Partners LP  19,664,000 
 50,000   Targa Resources Corp.  4,341,500 
 476,000   Targa Resources Partners LP  21,443,800 
 402,229   Tesoro Logistics LP  22,126,617 
 1,000,000   TransCanada Corp. (Canada)(a)  44,480,000 
 162,440   Valero Energy Partners LP  8,113,878 
 366,460   Westlake Chemical Partners LP  9,289,761 
 294,000   Western Gas Partners LP  20,747,580 
 1,050,000   The Williams Companies, Inc.(a)  46,053,000 
 333,000   Williams Partners LP  14,122,530 
        785,901,003 
          
     TELECOMMUNICATIONS—13.0%    
 1,708,260   AT&T Inc.(a)(b)  56,235,919 
 939,200   BCE Inc. (Canada)(a)  43,156,240 
 1,600,000   CenturyLink Inc.(a)(b)  59,472,000 
 3,518,491   Frontier Communications Corp.(a)(b)  23,626,667 
 1,000,000   Orange SA (France)  17,626,395 
 1,094,800   Telus Corp. (Canada)  37,637,393 
 1,560,089   Verizon Communications Inc.(a)(b)  71,311,668 
 782,200   Vodafone Group Plc ADR (United Kingdom)  27,478,686 
 4,000,000   Windstream Holdings, Inc.  31,800,000 
        368,344,968 
     Total Common Stocks & MLP Interests (Cost $2,337,735,344)  3,225,803,288 
          
  PREFERRED STOCKS—1.7%     
          
     UTILITY—0.1%    
 50,000   Exelon Corp. 6 1/2%, due 6/01/17  2,618,000 
        2,618,000 
     NON-UTILITY—1.6%    
 100,000   Public Storage 6 7/8% Series O Perpetual  2,588,000 
 600,000   Realty Income Corp. 6 5/8% Series F Perpetual  16,050,000 
 400,000   Regency Centers Corp. 6 5/8% Series 6 Perpetual  10,408,000 
 234,900   Vornado Realty Trust 6 5/8% Series G Perpetual  6,048,675 
 350,000   Vornado Realty Trust 6 5/8% Series I Perpetual  8,977,500 
        44,072,175 
     Total Preferred Stocks (Cost $43,761,811)  46,690,175 

 

The accompanying notes are an integral part of this financial statement.

 
 

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
JANUARY 31, 2015
(Unaudited)

 

     Value
Par Value  Description (Note 1)
          
BONDS—19.1%        
          
     ELECTRIC, GAS AND WATER—9.9%    
$22,000,000   Arizona Public Service Co.    
     6 7/8%, due 8/01/36(a)(b)$ 31,240,088
 10,450,000   Atmos Energy Corp.    
     8 1/2%, due 3/15/19(a)(b)  13,177,889
 11,000,000   Cleveland Electric Illuminating Co.    
     8 7/8%, due 11/15/18(a)(b)  13,756,259
 6,750,000   Commonwealth Edison Company    
     6.95%, due 7/15/18  7,872,727
 15,305,000   Consolidated Edison Co. of New York    
     7 1/8%, due 12/01/18(a)(b)  18,417,211
 9,354,000   Dominion Resources, Inc.    
     6.40%, due 6/15/18(a)(b)  10,831,109
 10,000,000   DPL Capital Trust II    
     8 1/8%, due 9/01/31  10,945,540
 20,000,000   Entergy Texas Inc.    
     7 1/8%, due 2/01/19(a)(b)  24,070,220
 14,376,000   Exelon Generation Co. LLC    
     6.20%, due 10/01/17(a)(b)  16,052,055
 11,315,000   NextEra Energy Capital Holdings, Inc.    
     7 7/8%, due 12/15/15(a)(b)  12,004,480
 10,000,000   Georgia Power Co.    
     5.70%, due 6/01/17(a)(b)  11,065,080
 10,618,000   Indiana Michigan Power Co.    
     7.00%, due 3/15/19(a)(b)  12,744,414
 5,000,000   Metropolitan Edison Co.    
     7.70%, due 1/15/19  6,069,910
 12,000,000   National Fuel Gas Co.    
     8 3/4%, due 5/01/19(a)(b)  15,051,936
 10,000,000   National Grid plc (United Kingdom)    
     6.30%, due 8/01/16  10,769,550

 

The accompanying notes are an integral part of this financial statement.

 
 

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
JANUARY 31, 2015
(Unaudited)

 

     Value
Par Value  Description (Note 1)
$3,350,000   Nevada Power Co.      
     7 1/8%, due 3/15/19$ 4,063,657  
 10,345,000   Oncor Electric Delivery Co. LLC      
     7.00%, due 9/01/22  13,553,595  
 5,000,000   PPL Energy Supply LLC      
     6 1/2%, due 5/01/18  5,319,375  
 14,000,000   Progress Energy Inc.      
     7.05%, due 3/15/19(a)(b)  16,866,696  
 5,130,000   Public Service New Mexico      
     7 1/2%, due 8/01/18  6,017,028  
 15,169,000   Sempra Energy      
     6 1/2%, due 6/01/16(a)(b)  16,306,083  
 5,000,000   Sempra Energy      
     6.15%, due 6/15/18  5,739,650  
        281,934,552  
     OIL & GAS STORAGE, TRANSPORTATION AND PRODUCTION—4.7%      
 6,488,000   Energy Transfer Partners      
     7.60%, due 2/01/24  8,200,177  
 8,850,000   Energy Transfer Partners      
     8 1/4%, due 11/15/29  12,574,646  
 5,000,000   Enterprise Products Operating LLC      
     6 1/2%, due 1/31/19  5,824,785  
 12,826,000   EQT Corp.      
     8 1/8%, due 6/01/19(a)(b)  15,527,117  
 8,030,000   Kinder Morgan, Inc.      
     6.85%, due 2/15/20  9,371,098  
 14,445,000   Magellan Midstream Partners, LP      
     6.40%, due 7/15/18(a)(b)  16,437,457  
 11,000,000   ONEOK, Inc.      
     6.00%, due 6/15/35(a)  10,720,996  
 9,000,000   ONEOK Partners, LP      
     8 5/8%, due 3/01/19  10,768,797  
 12,940,000   Spectra Energy Capital, LLC      
     6.20%, due 4/15/18  14,505,132  
 2,615,000   Spectra Energy Capital, LLC      
     6 3/4%, due 7/15/18  2,982,347  
 9,140,000   TransCanada PipeLines Ltd. (Canada)      
     7 1/8%, due 1/15/19  10,811,368  
 14,380,000   Williams Partners, LP      
     7 1/4%, due 2/01/17(a)(b)  15,848,299  
        133,572,219  
     TELECOMMUNICATIONS—4.1%      
 10,000,000   BellSouth Capital Funding Corp.      
     7 7/8%, due 2/15/30(a)(b)  13,894,000  
 15,000,000   CenturyLink Inc.      
     6 7/8%, due 1/15/28  15,595,503  
 5,900,000   Comcast Corp.      
     7.05%, due 3/15/33  8,610,643  
 15,000,000   Koninklijke KPN NV (Netherlands)      
     8 3/8%, due 10/01/30(a)(b)  22,167,435  
 10,311,000   Rogers Wireless Inc. (Canada)      
     7 1/2%, due 3/15/15(a)(b)  10,393,024  
 10,000,000   TCI Communications Inc.      
     8 3/4%, due 8/01/15(a)(b)  10,405,780  
 5,000,000   TCI Communications Inc.      
     7 1/8%, due 2/15/28  7,114,280  
 15,500,000   Verizon Global Funding Corp.      
     7 3/4%, due 12/01/30(a)  22,370,034  
 5,000,000   Vodafone Group Plc (United Kingdom)      
     7 7/8%, due 2/15/30  7,270,320  
        117,821,019  
     NON-UTILITY—0.4%      
 8,000,000   Dayton Hudson Corp.      
     9 7/8%, due 7/01/20  11,023,824  
        11,023,824  
     Total Bonds (Cost $510,612,533)  544,351,614  
            
 TOTAL INVESTMENTS—134.2% (Cost $2,892,109,688)   3,816,845,077  
 Borrowings—(24.6%)   (700,000,000)  
 Other assets less liabilities—(9.6%)   (272,564,131)  
 NET ASSETS APPLICABLE TO COMMON STOCK—100.0%   $2,844,280,946  

 

The accompanying notes are an integral part of this financial statement. 

 
 

 DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
JANUARY 31, 2015
(Unaudited)

 

(a) All or a portion of this security has been pledged as collateral for borrowings and made available for loan.
       
(b) All or a portion of this security has been loaned.    
       
The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common stock of the Fund.
       
Note 1. Investment Valuation    
       
The Fund's investments are carried at fair value which is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment.  The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes is summarized in the three broad levels listed below.
       
Level 1 - quoted prices in active markets for identical securities  
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)
       
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities.  For more information about the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent financial statements contained in its annual report.  The following is a summary of the inputs used to value each of the Fund's investments at January 31, 2015:

 

   Level 1  Level 2
Common stocks & MLP interests  $3,225,803,288    - 
Preferred stocks   46,690,175    - 
Bonds   -   $544,351,614 
     Total  $3,272,493,463   $544,351,614 

 

There were no Level 3 priced securities held and there were no transfers between Level 1 and Level 2  related to securities held at January 31, 2015. 

 

 
 

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
JANUARY 31, 2015
(Unaudited)

 

 Note 2. Federal Tax Cost     
       
 At October 31, 2014, the Fund's most recent fiscal tax year end, the federal tax cost of investments and aggregate gross unrealized appreciation (depreciation) were as follows:

 

Unrealized Unrealized Net Unrealized
Federal Tax Cost Appreciation Depreciation Appreciation
$2,866,087,593  $981,028,616 ($61,246,204) $919,782,412

 

The difference between the book basis and tax basis of unrealized appreciation (depreciation) and cost of investments is primarily attributable to MLP earnings and basis adjustments, the tax deferral of wash sale losses, the accretion of market discount and amortization of premiums and alternative tax treatment of certain securities.
       
Other information regarding the Fund is available on the Fund's website at www.dnpselectincome.com or the Securities and Exchange Commission's website at www.sec.gov. 

 

 
 

 

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 Securities Exchange Act of 1934.

 

(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 Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002

 
 

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) DNP SELECT INCOME FUND INC.
   
By (Signature and Title) /s/ Nathan I. Partain
  Nathan I. Partain
  President and Chief Executive Officer
  (Principal Executive Officer)
   
Date March 24, 2015

 

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
  (Principal Executive Officer)
   
Date March 24, 2015

 

 

By (Signature and Title)   /s/ Alan M. Meder
  Alan M. Meder
  Treasurer and Assistant Secretary
  (Principal Financial and Accounting Officer)
   
Date March 24, 2015