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 811-07358

Duff & Phelps Utility and Corporate

Bond Trust 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.
Duff & Phelps Utility and Corporate Bond Trust 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: (800) 338-8214

Date of fiscal year end: October 31

Date of reporting period: July 31, 2018

 

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ITEM 1.     SCHEDULE OF INVESTMENTS.

See the Statement of Net Assets below.

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

STATEMENT OF NET ASSETS

July 31, 2018

(Unaudited)

 

Principal         Amount (000)				Description		Value
				LONG-TERM INVESTMENTS - 137.0%
				Corporate Bonds - 136.9%
				Electric, Gas and Water - 55.0%
	$4,000			American Water Capital Corp.,
				3.40%, 3/01/25			$3,949,795
	4,000			CMS Energy Corporation,
				5.05%, 3/15/22 (a)(b)			4,177,236
	10,000			CalEnergy Company, Inc.,
				8.48%, 9/15/28 (a)			13,719,229
	10,713			The Cleveland Electric Illuminating Company,
				8.875%, 11/15/18			10,895,960
	5,000			The Detroit Edison Company,
				3.45%, 10/01/20 (a)			5,019,296
	4,000			Dominion Resources, Inc.,
				5.20%, 8/15/19 (a)			4,095,518
	10,000			Entergy Texas, Inc.,
				7.125%, 2/01/19 (a)(b)			10,202,371
	5,000			Florida Power & Light Company,
				3.25%, 6/01/24			4,930,577
	8,115			Indiana Michigan Power Company,
				7.00%, 3/15/19 (a)(b)			8,329,046
	2,000			Integrys Energy Group, Inc.,
				4.17%, 11/01/20			2,034,097
	5,000			Interstate Power and Light Company,
				3.25%, 12/01/24			4,885,569
	4,000			National Fuel Gas Company,
				3.75%, 03/01/23			3,946,140
	4,000			Nevada Power Company,
				7.125%, 3/15/19 (a)(b)			4,106,843
	5,000			Oncor Electric Delivery Company, LLC,
				7.00%, 9/01/22 (a)(b)			5,668,157
	3,000			Pacific Gas and Electric Company,
				4.25%, 5/15/21 (a)(b)			3,043,860
	3,350			Potomac Electric Power Company,
				3.60%, 3/15/24			3,354,562
	10,000			Progress Energy, Inc.,
				7.05%, 3/15/19 (a)(b)			10,258,494
	4,000			Public Service Electric & Gas Company,
				3.75%, 3/15/24 (a)(b)			4,018,029
	4,000			Sempra Energy,
				3.55%, 6/15/24			3,906,717
	7,785			South Carolina Electric & Gas Company,
				6.50%, 11/01/18			7,848,641
	5,000			Southern California Edison Company,
				3.875%, 6/01/21 (a)(b)			5,072,042
	4,000			Southern Power Company,
				4.15%, 12/01/25 (a)			3,991,166

 

The accompanying note is an integral part of this financial statement.

 

1

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

STATEMENT OF NET ASSETS — (Continued)

July 31, 2018

(Unaudited)

 

Principal         Amount (000)				Description		Value
	$ 5,000			Western Massachusetts Electric Company,
				3.50%, 9/15/21 (a)			$ 5,014,797
	3,000			Wisconsin Energy Corporation,
				3.55%, 6/15/25 (a)(b)			2,965,010
	4,000			Xcel Energy Inc.,
				3.35%, 12/01/26 (a)			3,819,813
							139,252,965
				Financial - 35.8%
	3,000			AvalonBay Communities, Inc.,
				3.95%, 1/15/21 (a)(b)			3,035,372
	3,000			Bank of America Corporation,
				5.00%, 5/13/21			3,139,328
	3,000			Citigroup Inc.,
				4.50%, 1/14/22 (a)			3,087,434
	4,000			Digital Realty Trust, L.P.,
				5.25%, 3/15/21 (a)			4,153,171
	4,000			Duke Realty Limited Partnership,
				3.875%, 10/15/22 (a)			4,034,123
	3,000			ERP Operating Limited Partnership,
				4.75%, 7/15/20			3,078,083
	3,500			Fifth Third Bancorp,
				3.50%, 3/15/22 (a)(b)			3,495,144
	5,000			General Electric Capital Corporation,
				4.375%, 9/16/20 (a)(b)			5,121,507
	4,000			The Goldman Sachs Group, Inc.,
				5.25%, 7/27/21 (a)			4,196,333
	4,000			HCP, Inc.,
				4.25%, 11/15/23 (a)			4,018,476
	4,000			JPMorgan Chase & Co.,
				3.90%, 7/15/25			4,003,117
	4,000			KeyCorp.,
				5.10%, 3/24/21 (a)(b)			4,169,274
	4,000			Kimco Realty Corporation,
				3.20%, 5/01/21 (a)(b)			3,966,705
	4,000			Liberty Property Limited Partnership,
				4.125%, 6/15/22			4,068,098
	5,000			National City Corporation,
				6.875%, 5/15/19 (a)			5,158,683
	3,000			Prologis, L.P.,
				3.75%, 11/01/25			2,992,252
	4,000			Regency Centers, L.P.,
				4.80%, 4/15/21 (a)			4,102,686
	4,000			Simon Property Group, L.P.,
				4.375%, 3/01/21 (a)			4,104,985
	3,000			UDR, Inc.,
				4.625%, 1/10/22 (a)			3,082,910

 

The accompanying note is an integral part of this financial statement.

 

2

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

STATEMENT OF NET ASSETS — (Continued)

July 31, 2018

(Unaudited)

 

Principal         Amount (000)				Description		Value
	$ 4,000			Ventas Realty, Limited Partnership and Ventas Capital Corporation,
				4.25%, 3/01/22 (a)(b)			$ 4,077,327
	4,000			Vornado Realty L.P.,
				5.00%, 1/15/22			4,155,166
	5,000			Wells Fargo & Company,
				4.125%, 8/15/23			5,031,678
	4,000			Welltower, Inc.,
				6.125%, 4/15/20 (a)			4,180,775
							90,452,627
				Oil & Gas Storage, Transportation and Production - 23.9%
	4,000			Conoco Inc.,
				6.95%, 4/15/29 (a)			4,939,966
	8,000			EQT Corporation,
				8.125%, 6/01/19 (a)(b)			8,325,274
	5,000			Enterprise Products Operating LLC,
				6.50%, 1/31/19 (a)			5,089,603
	5,000			Kinder Morgan Energy Partners, L.P.,
				7.75%, 3/15/32 (a)(b)			6,154,545
	5,000			Magellan Midstream Energy Partners, L.P.,
				6.55%, 7/15/19 (a)			5,174,202
	4,000			ONEOK Partners, L.P.,
				4.90%, 3/15/25 (a)			4,183,622
	5,000			Phillips 66,
				3.90%, 3/15/28			4,937,856
	4,000			Plains All American Pipeline, L.P.,
				5.00%, 2/01/21 (a)			4,109,376
	10,000			Trans-Canada PipeLines Limited,
				9.875%, 1/01/21 (Canada) (a)(b)			11,541,137
	6,000			Williams Partners L.P.,
				4.30%, 3/04/24 (a)			6,058,676
							60,514,257
				Industrial - 19.0%
	4,000			Amgen Inc.,
				4.10%, 6/15/21 (a)(b)			4,084,387
	4,000			CSX Corporation,
				4.25%, 6/01/21 (a)(b)			4,094,881
	3,000			CVS Health Corporation,
				4.125%, 5/15/21 (a)(b)			3,051,152
	4,000			Caterpillar Inc.,
				3.90%, 5/27/21 (a)(b)			4,089,053
	6,000			The Dow Chemical Company,
				9.00%, 4/01/21 (a)			6,800,966
	4,000			Ford Motor Company,
				4.346%, 12/08/26 (a)(b)			3,865,533

 

The accompanying note is an integral part of this financial statement.

 

3

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

STATEMENT OF NET ASSETS — (Continued)

July 31, 2018

(Unaudited)

 

Principal         Amount (000)				Description		Value
	$ 5,000			Sun Company, Inc.,
				9.00%, 11/01/24			$ 5,716,929
	5,275			Tele-Communications, Inc.,
				10.125%, 4/15/22 (a)(b)			6,456,626
	3,200			Tele-Communications, Inc.,
				9.875%, 6/15/22 (a)			3,819,758
	5,000			Time Warner, Inc.,
				9.15%, 2/01/23 (a)(b)			5,997,332
							47,976,617
				Telecommunications - 3.2%
	4,000			AT&T Inc.,
				4.60%, 2/15/21 (a)			4,107,411
	4,000			Verizon Communications Inc.,
				3.45%, 3/15/21 (a)			4,007,442
							8,114,852
				Total Corporate Bonds
				(Cost $365,906,173)			346,311,318
				U.S. Government and Agency Mortgage-Backed Securities - 0.1%
				Federal National Mortgage Association,
				Pass-Through Certificates,
	47			8.00%, 10/01/30			54,853
	180			7.00%, 12/01/31			200,614
				Government National Mortgage Association,
				Pass-Through Certificates,
	4			7.00%, 3/15/26			4,231
	28			8.00%, 11/15/30			29,883
				Total U.S. Government and Agency Mortgage-Backed Securities
				(Cost $267,015)			289,582
				TOTAL INVESTMENTS - 137.0%
				(Cost $366,173,188)			346,600,900
				Secured borrowings - (41.5)%			(105,000,000)
				Other assets less other liabilities - 4.5%			11,321,859
				NET ASSETS APPLICABLE TO COMMON STOCK - 100.0%			$252,922,759

 

(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.

 

The accompanying note is an integral part of this financial statement.

 

4

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DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.

STATEMENT OF NET ASSETS — (Continued)

July 31, 2018

(Unaudited)

 

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 semi-annual report. The following is a summary of the inputs used to value each of the Fund’s investments at July 31, 2018:

 

		Level 2
Corporate bonds		$	346,311,318
U.S. Government and Agency mortgage-backed securities			289,582
Total		$	346,600,900

There were no Level 1 or Level 3 priced securities held and there were no transfers between Level 1, Level 2, or Level 3 related to securities held at July 31, 2018.

Other information regarding the Fund is available on the Fund’s website at www.ducfund.com or the Securities and Exchange Commission’s website at www.sec.gov.

 

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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.

 

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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)		DUFF & PHELPS UTILITY AND CORPORATE BOND TRUST INC.
By (Signature and Title)		/S/ NATHAN I. PARTAIN
		Nathan I. Partain President and Chief Executive Officer (Principal Executive Officer)
Date		September 21, 2018

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		September 21, 2018
By (Signature and Title)		/S/ ALAN M. MEDER
		Alan M. Meder Treasurer and Assistant Secretary (Principal Financial and Accounting Officer)
Date		September 21, 2018