UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
| Investment Company Act file number: | 811-07460 | |
| Exact name of registrant as specified in charter: | Delaware Investments® Dividend and | |
| Income Fund, Inc. | ||
| Address of principal executive offices: | 2005 Market Street | |
| Philadelphia, PA 19103 | ||
| Name and address of agent for service: | David F. Connor, Esq. | |
| 2005 Market Street | ||
| Philadelphia, PA 19103 | ||
| Registrant’s telephone number, including area code: | (800) 523-1918 | |
| Date of fiscal year end: | November 30 | |
| Date of reporting period: | August 31, 2018 |
Item 1. Schedule of Investments.
Schedule of investments
Delaware Investments® Dividend and Income Fund, Inc.
August 31, 2018 (Unaudited)
| Number of | Value | |||||
| shares | (US $) | |||||
| Common Stock – 94.18% | ||||||
| Consumer Discretionary – 4.99% | ||||||
| Dollar Tree † | 24,600 | $ | 1,980,546 | |||
| Lowe’s | 23,600 | 2,566,500 | ||||
| 4,547,046 | ||||||
| Consumer Staples – 5.33% | ||||||
| Archer-Daniels-Midland | 49,100 | 2,474,640 | ||||
| Mondelez International | 55,800 | 2,383,776 | ||||
| 4,858,416 | ||||||
| Diversified REITs – 1.25% | ||||||
| Equinix | 200 | 87,226 | ||||
| Fibra Uno Administracion | 88,100 | 115,282 | ||||
| Lexington Realty Trust | 23,000 | 214,820 | ||||
| Tritax EuroBox 144A #† | 384,094 | 521,629 | ||||
| Vornado Realty Trust | 2,565 | 197,505 | ||||
| 1,136,462 | ||||||
| Energy – 9.57% | ||||||
| ConocoPhillips | 30,900 | 2,268,987 | ||||
| Halliburton | 47,200 | 1,882,808 | ||||
| Marathon Oil | 111,400 | 2,396,214 | ||||
| Occidental Petroleum | 27,300 | 2,180,451 | ||||
| 8,728,460 | ||||||
| Financials – 12.19% | ||||||
| Allstate | 22,400 | 2,252,768 | ||||
| American International | ||||||
| Group | 40,700 | 2,164,019 | ||||
| Bank of New York Mellon | 40,700 | 2,122,505 | ||||
| BB&T | 44,600 | 2,304,036 | ||||
| Marsh & McLennan | 26,900 | 2,276,547 | ||||
| 11,119,875 | ||||||
| Healthcare – 22.46% | ||||||
| Abbott Laboratories | 34,400 | 2,299,296 | ||||
| Brookdale Senior Living † | 156,500 | 1,552,480 | ||||
| Cardinal Health | 44,400 | 2,317,236 | ||||
| CVS Health | 32,300 | 2,430,252 | ||||
| Express Scripts Holding † | 28,900 | 2,543,778 | ||||
| Johnson & Johnson | 16,500 | 2,222,385 | ||||
| Merck & Co. | 35,900 | 2,462,381 | ||||
| Pfizer | 60,689 | 2,519,807 | ||||
| Quest Diagnostics | 19,400 | 2,133,612 | ||||
| 20,481,227 | ||||||
| Healthcare REITs – 0.71% | ||||||
| Assura | 269,626 | 191,557 | ||||
| HCP | 9,800 | 264,894 | ||||
| Healthcare Realty Trust | 3,800 | 117,648 | ||||
| Sabra Health Care REIT | 3,000 | 70,740 | ||||
| 644,839 | ||||||
| Hotel REITs – 1.04% | ||||||
| Hospitality Properties Trust | 4,700 | 136,253 | ||||
| MGM Growth Properties | ||||||
| Class A | 15,000 | 460,950 | ||||
| Summit Hotel Properties | 25,600 | 351,488 | ||||
| 948,691 | ||||||
| Industrial REIT – 0.58% | ||||||
| Liberty Property Trust | 2,700 | 118,125 | ||||
| Terreno Realty | 10,600 | 407,146 | ||||
| 525,271 | ||||||
| Industrials – 7.54% | ||||||
| Northrop Grumman | 7,000 | 2,089,430 | ||||
| Raytheon | 11,500 | 2,293,560 | ||||
| Waste Management | 27,400 | 2,490,660 | ||||
| 6,873,650 | ||||||
| Information Technology – 9.84% | ||||||
| CA | 50,686 | 2,220,047 | ||||
| Cisco Systems | 53,200 | 2,541,364 | ||||
| Intel | 40,500 | 1,961,415 | ||||
| Oracle | 46,300 | 2,249,254 | ||||
| 8,972,080 | ||||||
| Mall REITs – 0.45% | ||||||
| Simon Property Group | 2,247 | 411,268 | ||||
| 411,268 | ||||||
| Manufactured Housing REIT – 0.16% | ||||||
| Sun Communities | 1,400 | 144,452 | ||||
| 144,452 | ||||||
| Materials – 2.53% | ||||||
| DowDuPont | 32,888 | 2,306,435 | ||||
| 2,306,435 | ||||||
| Multifamily REITs – 5.27% | ||||||
| ADO Properties 144A # | 9,989 | 641,768 | ||||
| American Homes 4 Rent | 6,980 | 161,936 | ||||
| Brookfield Property Partners | 2 | 40 | ||||
| Equity Residential | 34,357 | 2,327,687 | ||||
| Essential Properties Realty | ||||||
| Trust † | 30,400 | 433,504 | ||||
| Gecina | 765 | 131,331 | ||||
| Grainger | 51,940 | 206,726 | ||||
| Invitation Homes | 12,200 | 285,114 | ||||
| NexPoint Residential Trust | 3,000 | 96,900 | ||||
| Safety Income & Growth | 23,600 | 389,400 | ||||
| Vonovia | 2,481 | 127,259 | ||||
| 4,801,665 | ||||||
(continues) NQ-DDF [8/18] 10/18 (621292) 1
Schedule of investments
Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)
| Number of | Value | |||||
| shares | (US $) | |||||
| Common Stock (continued) | ||||||
| Office REITs – 1.34% | ||||||
| Columbia Property Trust | 10,300 | $ | 248,024 | |||
| Easterly Government | ||||||
| Properties | 48,000 | 972,000 | ||||
| 1,220,024 | ||||||
| Self-Storage REITs – 0.75% | ||||||
| CubeSmart | 3,800 | 116,090 | ||||
| National Storage Affiliates | ||||||
| Trust | 20,100 | 570,036 | ||||
| 686,126 | ||||||
| Shopping Center REITs – 0.26% | ||||||
| Brixmor Property Group | 6,400 | 116,608 | ||||
| First Capital Realty | 7,981 | 125,005 | ||||
| 241,613 | ||||||
| Single Tenant REIT – 0.50% | ||||||
| Spirit Realty Capital | 15,000 | 125,550 | ||||
| STORE Capital | 11,500 | 331,315 | ||||
| 456,865 | ||||||
| Telecommunication Services – 4.99% | ||||||
| AT&T | 69,400 | 2,216,636 | ||||
| Century Communications =† | 500,000 | 0 | ||||
| Verizon Communications | 43,000 | 2,337,910 | ||||
| 4,554,546 | ||||||
| Utilities – 2.43% | ||||||
| Edison International | 33,700 | 2,215,101 | ||||
| 2,215,101 | ||||||
| Total Common Stock | ||||||
| (cost $61,572,011) | 85,874,112 | |||||
| Convertible Preferred Stock – 1.29% | ||||||
| A Schulman 6.00% exercise | ||||||
| price $52.33 ψ | 199 | 209,447 | ||||
| AMG Capital Trust II 5.15% | ||||||
| exercise price $198.02, | ||||||
| maturity date 10/15/37 | 2,953 | 173,591 | ||||
| Bank of America 7.25% | ||||||
| exercise price $50.00 ψ | 155 | 202,886 | ||||
| El Paso Energy Capital Trust I | ||||||
| 4.75% exercise price | ||||||
| $34.49, maturity date | ||||||
| 3/31/28 | 5,250 | 243,626 | ||||
| QTS Realty Trust 6.50% | ||||||
| exercise price $47.03 ψ | 1,220 | 134,749 | ||||
| Wells Fargo & Co. 7.50% | ||||||
| exercise price $156.71 ψ | 159 | 206,062 | ||||
| Total Convertible Preferred Stock | ||||||
| (cost $999,880) | 1,170,361 | |||||
| Principal | ||||||
| amount° | ||||||
| Convertible Bonds – 6.49% | ||||||
| Capital Goods – 0.91% | ||||||
| Aerojet Rocketdyne Holdings 2.25% | ||||||
| exercise price $26.00, maturity | ||||||
| date 12/15/23 | 51,000 | 74,781 | ||||
| Cemex 3.72% exercise price | ||||||
| $11.01, maturity date 3/15/20 | 180,000 | 182,856 | ||||
| Chart Industries 144A 1.00% | ||||||
| exercise price $58.73, maturity | ||||||
| date 11/15/24 # | 133,000 | 185,206 | ||||
| Dycom Industries 0.75% exercise | ||||||
| price $96.89, maturity date | ||||||
| 9/15/21 | 80,000 | 88,876 | ||||
| Tesla Energy Operations 1.625% | ||||||
| exercise price $759.35, maturity | ||||||
| date 11/1/19 | 326,000 | 298,581 | ||||
| 830,300 | ||||||
| Communications – 0.65% | ||||||
| DISH Network | ||||||
| 2.375% exercise price $82.22, | ||||||
| maturity date 3/15/24 | 181,000 | 159,552 | ||||
| 3.375% exercise price $65.18, | ||||||
| maturity date 8/15/26 | 115,000 | 108,457 | ||||
| GCI Liberty 144A 1.75% exercise | ||||||
| price $370.52, maturity date | ||||||
| 9/30/46 # | 173,000 | 181,673 | ||||
| Liberty Media 2.25% exercise price | ||||||
| $35.35, maturity date 9/30/46 | 260,000 | 144,257 | ||||
| 593,939 | ||||||
| Consumer Cyclical – 0.19% | ||||||
| Huron Consulting Group 1.25% | ||||||
| exercise price $79.89, maturity | ||||||
| date 10/1/19 | 151,000 | 147,376 | ||||
| Live Nation Entertainment 144A | ||||||
| 2.50% exercise price $68.02, | ||||||
| maturity date 3/15/23 # | 25,000 | 25,953 | ||||
| 173,329 | ||||||
| Consumer Non-Cyclical – 1.34% | ||||||
| Insulet 144A 1.375% exercise price | ||||||
| $93.18, maturity date 11/15/24 # | 69,000 | 87,009 | ||||
| Medicines 2.75% exercise price | ||||||
| $48.97, maturity date 7/15/23 | 183,000 | 192,148 | ||||
| Neurocrine Biosciences 2.25% | ||||||
| exercise price $75.92, maturity | ||||||
| date 5/15/24 | 131,000 | 225,015 | ||||
| Pacira Pharmaceuticals 2.375% | ||||||
| exercise price $66.89, maturity | ||||||
| date 4/1/22 | 161,000 | 169,297 | ||||
| Paratek Pharmaceuticals 144A | ||||||
| 4.75% exercise price $15.90, | ||||||
| maturity date 5/1/24 # | 112,000 | 108,964 | ||||
2 NQ-DDF [8/18] 10/18 (621292)
(Unaudited)
| Principal | Value | |||||
| amount° | (US $) | |||||
| Convertible Bonds (continued) | ||||||
| Consumer Non-Cyclical (continued) | ||||||
| Spectrum Pharmaceuticals 2.75% | ||||||
| exercise price $10.53, maturity | ||||||
| date 12/15/18 | 40,000 | $ | 82,962 | |||
| Vector Group | ||||||
| 1.75% exercise price $22.35, | ||||||
| maturity date 4/15/20 ● | 262,000 | 271,639 | ||||
| 2.50% exercise price $14.50, | ||||||
| maturity date 1/15/19 ● | 72,000 | 79,840 | ||||
| 1,216,874 | ||||||
| Electric – 0.14% | ||||||
| NRG Energy 144A 2.75% exercise | ||||||
| price $47.74, maturity date | ||||||
| 6/1/48 # | 128,000 | 131,540 | ||||
| 131,540 | ||||||
| Energy – 0.68% | ||||||
| Cheniere Energy 4.25% exercise | ||||||
| price $138.38, maturity date | ||||||
| 3/15/45 | 259,000 | 206,340 | ||||
| Helix Energy Solutions Group | ||||||
| 4.125% exercise price $9.47, | ||||||
| maturity date 9/15/23 | 7,000 | 8,800 | ||||
| 4.25% exercise price $13.89, | ||||||
| maturity date 5/1/22 | 218,000 | 234,076 | ||||
| PDC Energy 1.125% exercise price | ||||||
| $85.39, maturity date 9/15/21 | 172,000 | 170,418 | ||||
| 619,634 | ||||||
| Financials – 0.65% | ||||||
| Ares Capital 3.75% exercise price | ||||||
| $19.39, maturity date 2/1/22 | 200,000 | 202,540 | ||||
| GAIN Capital Holdings 5.00% | ||||||
| exercise price $8.20, maturity | ||||||
| date 8/15/22 | 154,000 | 172,172 | ||||
| New Mountain Finance 5.00% | ||||||
| exercise price $15.80, maturity | ||||||
| date 6/15/19 | 212,000 | 214,559 | ||||
| 589,271 | ||||||
| REITs – 0.65% | ||||||
| Blackstone Mortgage Trust | ||||||
| 4.375% exercise price $35.67, | ||||||
| maturity date 5/5/22 | 121,000 | 121,050 | ||||
| 4.75% exercise price $36.23, | ||||||
| maturity date 3/15/23 | 56,000 | 55,854 | ||||
| 5.25% exercise price $27.36, | ||||||
| maturity date 12/1/18 | 69,000 | 85,440 | ||||
| Spirit Realty Capital 3.75% exercise | ||||||
| price $11.46, maturity date | ||||||
| 5/15/21 | 246,000 | 249,241 | ||||
| VEREIT 3.75% exercise price | ||||||
| $14.99, maturity date 12/15/20 | 83,000 | 84,032 | ||||
| 595,617 | ||||||
| Services – 0.13% | ||||||
| Team 5.00% exercise price $21.70, | ||||||
| maturity date 8/1/23 | 93,000 | 119,130 | ||||
| 119,130 | ||||||
| Technology – 1.15% | ||||||
| CSG Systems International 4.25% | ||||||
| exercise price $57.12, maturity | ||||||
| date 3/15/36 | 122,000 | 127,294 | ||||
| Knowles 3.25% exercise price | ||||||
| $18.43, maturity date 11/1/21 | 147,000 | 175,510 | ||||
| Microchip Technology 1.625% | ||||||
| exercise price $98.03, maturity | ||||||
| date 2/15/27 | 15,000 | 17,095 | ||||
| PROS Holdings 2.00% exercise price | ||||||
| $48.63, maturity date 6/1/47 | 137,000 | 135,845 | ||||
| Synaptics 0.50% exercise price | ||||||
| $73.02, maturity date 6/15/22 | 174,000 | 171,378 | ||||
| Verint Systems 1.50% exercise price | ||||||
| $64.46, maturity date 6/1/21 | 302,000 | 310,694 | ||||
| Vishay Intertechnology 144A 2.25% | ||||||
| exercise price $31.49, maturity | ||||||
| date 6/15/25 # | 113,000 | 113,431 | ||||
| 1,051,247 | ||||||
| Total Convertible Bonds | ||||||
| (cost $5,596,858) | 5,920,881 | |||||
| Corporate Bonds – 36.53% | ||||||
| Automotive – 0.48% | ||||||
| American Axle & Manufacturing | ||||||
| 6.25% 3/15/26 | 185,000 | 182,919 | ||||
| Goodyear Tire & Rubber 4.875% | ||||||
| 3/15/27 | 275,000 | 253,000 | ||||
| 435,919 | ||||||
| Banking – 1.93% | ||||||
| Ally Financial 5.75% 11/20/25 | 305,000 | 317,200 | ||||
| Credit Suisse Group 144A 6.25% #µψ | 200,000 | 200,000 | ||||
| Lloyds Banking Group 7.50% µψ | 330,000 | 343,623 | ||||
| Popular 7.00% 7/1/19 | 255,000 | 261,694 | ||||
| Royal Bank of Scotland Group | ||||||
| 8.625% µψ | 400,000 | 429,160 | ||||
| UBS Group Funding Switzerland | ||||||
| 6.875% µψ | 200,000 | 204,812 | ||||
| 1,756,489 | ||||||
(continues) NQ-DDF [8/18] 10/18 (621292) 3
Schedule of investments
Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)
| Principal | Value | |||||
| amount° | (US $) | |||||
| Corporate Bonds (continued) | ||||||
| Basic Industry – 5.73% | ||||||
| BMC East 144A 5.50% 10/1/24 # | 125,000 | $ | 121,875 | |||
| Boise Cascade 144A 5.625% | ||||||
| 9/1/24 # | 400,000 | 409,000 | ||||
| Builders FirstSource 144A 5.625% | ||||||
| 9/1/24 # | 170,000 | 165,750 | ||||
| Chemours 5.375% 5/15/27 | 190,000 | 187,150 | ||||
| FMG Resources August 2006 | ||||||
| 144A 4.75% 5/15/22 # | 105,000 | 103,430 | ||||
| 144A 5.125% 5/15/24 # | 180,000 | 174,825 | ||||
| Freeport-McMoRan | ||||||
| 4.55% 11/14/24 | 170,000 | 164,475 | ||||
| 6.875% 2/15/23 | 340,000 | 364,650 | ||||
| Hudbay Minerals | ||||||
| 144A 7.25% 1/15/23 # | 20,000 | 20,450 | ||||
| 144A 7.625% 1/15/25 # | 180,000 | 183,825 | ||||
| IAMGOLD 144A 7.00% 4/15/25 # | 20,000 | 20,200 | ||||
| Joseph T Ryerson & Son 144A | ||||||
| 11.00% 5/15/22 # | 110,000 | 121,550 | ||||
| Koppers 144A 6.00% 2/15/25 # | 215,000 | 216,613 | ||||
| Kraton Polymers 144A 7.00% | ||||||
| 4/15/25 # | 150,000 | 155,437 | ||||
| Lennar | ||||||
| 4.50% 4/30/24 | 195,000 | 191,890 | ||||
| 4.75% 5/30/25 | 95,000 | 93,813 | ||||
| M/I Homes 5.625% 8/1/25 | 20,000 | 18,850 | ||||
| New Enterprise Stone & Lime 144A | ||||||
| 10.125% 4/1/22 # | 30,000 | 32,363 | ||||
| NOVA Chemicals | ||||||
| 144A 5.00% 5/1/25 # | 130,000 | 125,775 | ||||
| 144A 5.25% 6/1/27 # | 300,000 | 285,750 | ||||
| Novelis 144A 6.25% 8/15/24 # | 241,000 | 244,615 | ||||
| Olin | ||||||
| 5.00% 2/1/30 | 175,000 | 167,781 | ||||
| 5.125% 9/15/27 | 195,000 | 193,537 | ||||
| Platform Specialty Products 144A | ||||||
| 5.875% 12/1/25 # | 40,000 | 39,750 | ||||
| PulteGroup 5.00% 1/15/27 | 100,000 | 95,625 | ||||
| Standard Industries | ||||||
| 144A 5.00% 2/15/27 # | 455,000 | 433,387 | ||||
| 144A 6.00% 10/15/25 # | 50,000 | 51,384 | ||||
| Steel Dynamics 5.00% 12/15/26 | 190,000 | 189,525 | ||||
| Tronox 144A 6.50% 4/15/26 # | 10,000 | 9,825 | ||||
| Tronox Finance 144A 5.75% | ||||||
| 10/1/25 # | 225,000 | 217,125 | ||||
| William Lyon Homes 144A 6.00% | ||||||
| 9/1/23 # | 20,000 | 19,406 | ||||
| Zekelman Industries 144A 9.875% | ||||||
| 6/15/23 # | 375,000 | 408,281 | ||||
| 5,227,912 | ||||||
| Capital Goods – 1.22% | ||||||
| Ardagh Packaging Finance 144A | ||||||
| 6.00% 2/15/25 # | 240,000 | 235,200 | ||||
| BWAY Holding | ||||||
| 144A 5.50% 4/15/24 # | 310,000 | 308,837 | ||||
| 144A 7.25% 4/15/25 # | 105,000 | 102,637 | ||||
| Crown Americas 144A 4.75% | ||||||
| 2/1/26 # | 285,000 | 274,313 | ||||
| Titan International 6.50% | ||||||
| 11/30/23 | 20,000 | 19,700 | ||||
| TransDigm 6.375% 6/15/26 | 170,000 | 172,231 | ||||
| 1,112,918 | ||||||
| Consumer Cyclical – 2.27% | ||||||
| AMC Entertainment Holdings | ||||||
| 6.125% 5/15/27 | 225,000 | 221,625 | ||||
| Boyd Gaming 6.375% 4/1/26 | 440,000 | 451,550 | ||||
| GLP Capital 5.375% 4/15/26 | 110,000 | 114,505 | ||||
| Golden Nugget 144A 8.75% | ||||||
| 10/1/25 # | 40,000 | 42,300 | ||||
| Hilton Worldwide Finance 4.875% | ||||||
| 4/1/27 | 375,000 | 369,844 | ||||
| KFC Holding 144A 5.25% 6/1/26 # | 325,000 | 325,813 | ||||
| MGM Resorts International 5.75% | ||||||
| 6/15/25 | 180,000 | 182,160 | ||||
| Penn National Gaming 144A | ||||||
| 5.625% 1/15/27 # | 215,000 | 207,641 | ||||
| Penske Automotive Group 5.50% | ||||||
| 5/15/26 | 160,000 | 157,200 | ||||
| 2,072,638 | ||||||
| Consumer Non-Cyclical – 0.91% | ||||||
| Charles River Laboratories | ||||||
| International 144A 5.50% | ||||||
| 4/1/26 # | 40,000 | 40,700 | ||||
| Cott Holdings 144A 5.50% | ||||||
| 4/1/25 # | 260,000 | 255,281 | ||||
| Dean Foods 144A 6.50% 3/15/23 # | 20,000 | 19,100 | ||||
| JBS USA | ||||||
| 144A 5.75% 6/15/25 # | 215,000 | 203,981 | ||||
| 144A 6.75% 2/15/28 # | 20,000 | 19,225 | ||||
| Pilgrim’s Pride 144A 5.75% | ||||||
| 3/15/25 # | 20,000 | 19,400 | ||||
| Post Holdings | ||||||
| 144A 5.00% 8/15/26 # | 100,000 | 96,250 | ||||
| 144A 5.625% 1/15/28 # | 180,000 | 174,600 | ||||
| 828,537 | ||||||
| Energy – 6.27% | ||||||
| Alta Mesa Holdings 7.875% | ||||||
| 12/15/24 | 405,000 | 399,431 | ||||
4 NQ-DDF [8/18] 10/18 (621292)
(Unaudited)
| Principal | Value | |||||
| amount° | (US $) | |||||
| Corporate Bonds (continued) | ||||||
| Energy (continued) | ||||||
| AmeriGas Partners | ||||||
| 5.625% 5/20/24 | 10,000 | $ | 9,975 | |||
| 5.875% 8/20/26 | 240,000 | 239,400 | ||||
| Antero Resources 5.625% 6/1/23 | 117,000 | 120,984 | ||||
| Cheniere Corpus Christi Holdings | ||||||
| 5.125% 6/30/27 | 40,000 | 40,850 | ||||
| 5.875% 3/31/25 | 80,000 | 85,300 | ||||
| 7.00% 6/30/24 | 100,000 | 111,000 | ||||
| Cheniere Energy Partners 5.25% | ||||||
| 10/1/25 | 30,000 | 30,075 | ||||
| Chesapeake Energy | ||||||
| 144A 8.00% 12/15/22 # | 44,000 | 46,310 | ||||
| 8.00% 1/15/25 | 100,000 | 102,375 | ||||
| Crestwood Midstream Partners | ||||||
| 5.75% 4/1/25 | 210,000 | 215,250 | ||||
| Diamond Offshore Drilling 7.875% | ||||||
| 8/15/25 | 30,000 | 30,675 | ||||
| Diamondback Energy 4.75% | ||||||
| 11/1/24 | 190,000 | 191,900 | ||||
| Energy Transfer Equity 5.50% | ||||||
| 6/1/27 | 115,000 | 120,894 | ||||
| Ensco 7.75% 2/1/26 | 30,000 | 28,763 | ||||
| Genesis Energy | ||||||
| 6.50% 10/1/25 | 40,000 | 38,900 | ||||
| 6.75% 8/1/22 | 294,000 | 301,350 | ||||
| Gulfport Energy | ||||||
| 6.375% 5/15/25 | 10,000 | 9,950 | ||||
| 6.375% 1/15/26 | 145,000 | 141,737 | ||||
| 6.625% 5/1/23 | 200,000 | 205,000 | ||||
| Hilcorp Energy I 144A 5.00% | ||||||
| 12/1/24 # | 97,000 | 94,211 | ||||
| Laredo Petroleum 6.25% 3/15/23 | 235,000 | 236,763 | ||||
| Murphy Oil 6.875% 8/15/24 | 500,000 | 529,346 | ||||
| Murphy Oil USA 5.625% 5/1/27 | 415,000 | 415,519 | ||||
| Newfield Exploration 5.375% | ||||||
| 1/1/26 | 275,000 | 288,063 | ||||
| NiSource 144A 5.65% #µψ | 125,000 | 126,719 | ||||
| NuStar Logistics 5.625% 4/28/27 | 160,000 | 160,000 | ||||
| Precision Drilling 144A 7.125% | ||||||
| 1/15/26 # | 40,000 | 41,250 | ||||
| QEP Resources 5.625% 3/1/26 | 285,000 | 273,600 | ||||
| Southwestern Energy | ||||||
| 4.10% 3/15/22 | 100,000 | 98,000 | ||||
| 6.20% 1/23/25 | 270,000 | 271,350 | ||||
| 7.75% 10/1/27 | 50,000 | 53,125 | ||||
| Summit Midstream Holdings 5.75% | ||||||
| 4/15/25 | 10,000 | 9,700 | ||||
| Targa Resources Partners | ||||||
| 5.375% 2/1/27 | 300,000 | 299,250 | ||||
| Targa Resources Partners | ||||||
| 144A 5.875% 4/15/26 # | 20,000 | 20,525 | ||||
| Transocean 144A 9.00% 7/15/23 # | 200,000 | 216,250 | ||||
| Transocean Proteus 144A 6.25% | ||||||
| 12/1/24 # | 76,500 | 78,659 | ||||
| Whiting Petroleum 6.625% | ||||||
| 1/15/26 | 30,000 | 31,313 | ||||
| 5,713,762 | ||||||
| Financials – 0.64% | ||||||
| AerCap Global Aviation Trust 144A | ||||||
| 6.50% 6/15/45 #µ | 200,000 | 207,000 | ||||
| E*TRADE Financial 5.875% µψ | 180,000 | 186,750 | ||||
| Vantiv 144A 4.375% 11/15/25 # | 200,000 | 191,250 | ||||
| 585,000 | ||||||
| Healthcare – 2.89% | ||||||
| Air Medical Group Holdings 144A | ||||||
| 6.375% 5/15/23 # | 223,000 | 201,815 | ||||
| Community Health Systems 6.25% | ||||||
| 3/31/23 | 25,000 | 23,875 | ||||
| DaVita 5.00% 5/1/25 | 180,000 | 171,450 | ||||
| Encompass Health | ||||||
| 5.75% 11/1/24 | 295,000 | 299,794 | ||||
| 5.75% 9/15/25 | 120,000 | 121,500 | ||||
| HCA | ||||||
| 5.375% 2/1/25 | 405,000 | 410,642 | ||||
| 5.875% 2/15/26 | 120,000 | 124,350 | ||||
| 7.58% 9/15/25 | 80,000 | 88,800 | ||||
| Hill-Rom Holdings | ||||||
| 144A 5.00% 2/15/25 # | 180,000 | 175,950 | ||||
| 144A 5.75% 9/1/23 # | 110,000 | 113,850 | ||||
| Hologic 144A 4.625% 2/1/28 # | 160,000 | 150,800 | ||||
| MPH Acquisition Holdings 144A | ||||||
| 7.125% 6/1/24 # | 192,000 | 199,200 | ||||
| Polaris Intermediate 144A PIK | ||||||
| 8.50% 12/1/22 #❆ | 10,000 | 10,363 | ||||
| Service Corp International 4.625% | ||||||
| 12/15/27 | 159,000 | 153,037 | ||||
| Surgery Center Holdings | ||||||
| 144A 6.75% 7/1/25 # | 20,000 | 19,400 | ||||
| 144A 8.875% 4/15/21 # | 30,000 | 31,387 | ||||
| Tenet Healthcare | ||||||
| 5.125% 5/1/25 | 175,000 | 174,344 | ||||
| 8.125% 4/1/22 | 155,000 | 164,300 | ||||
| 2,634,857 | ||||||
| Insurance – 0.46% | ||||||
| AssuredPartners 144A 7.00% | ||||||
| 8/15/25 # | 40,000 | 39,300 | ||||
(continues) NQ-DDF [8/18] 10/18 (621292) 5
Schedule of investments
Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)
| Principal | Value | |||||
| amount° | (US $) | |||||
| Corporate Bonds (continued) | ||||||
| Insurance (continued) | ||||||
| HUB International 144A 7.00% | ||||||
| 5/1/26 # | 50,000 | $ | 49,803 | |||
| NFP 144A 6.875% 7/15/25 # | 40,000 | 39,400 | ||||
| USIS Merger Sub 144A 6.875% | ||||||
| 5/1/25 # | 295,000 | 294,263 | ||||
| 422,766 | ||||||
| Media – 3.87% | ||||||
| Altice France 144A 7.375% | ||||||
| 5/1/26 # | 200,000 | 197,250 | ||||
| AMC Networks 4.75% 8/1/25 | 200,000 | 193,500 | ||||
| CCO Holdings | ||||||
| 144A 5.125% 5/1/27 # | 120,000 | 114,750 | ||||
| 144A 5.50% 5/1/26 # | 30,000 | 29,700 | ||||
| 144A 5.75% 2/15/26 # | 160,000 | 160,400 | ||||
| 144A 5.875% 5/1/27 # | 360,000 | 358,650 | ||||
| Cequel Communications Holdings I | ||||||
| 144A 7.75% 7/15/25 # | 200,000 | 213,750 | ||||
| CSC Holdings 6.75% 11/15/21 | 230,000 | 244,375 | ||||
| Gray Television 144A 5.875% | ||||||
| 7/15/26 # | 290,000 | 290,725 | ||||
| Lamar Media 5.75% 2/1/26 | 167,000 | 174,097 | ||||
| Radiate Holdco 144A 6.625% | ||||||
| 2/15/25 # | 20,000 | 18,750 | ||||
| Sinclair Television Group 144A | ||||||
| 5.125% 2/15/27 # | 195,000 | 181,350 | ||||
| Sirius XM Radio | ||||||
| 144A 5.00% 8/1/27 # | 395,000 | 383,640 | ||||
| 144A 5.375% 4/15/25 # | 205,000 | 208,587 | ||||
| Tribune Media 5.875% 7/15/22 | 170,000 | 173,400 | ||||
| UPC Holding 144A 5.50% | ||||||
| 1/15/28 # | 200,000 | 186,750 | ||||
| Virgin Media Secured Finance 144A | ||||||
| 5.25% 1/15/26 # | 200,000 | 195,290 | ||||
| VTR Finance 144A 6.875% | ||||||
| 1/15/24 # | 200,000 | 204,950 | ||||
| 3,529,914 | ||||||
| Services – 4.41% | ||||||
| Advanced Disposal Services 144A | ||||||
| 5.625% 11/15/24 # | 215,000 | 215,537 | ||||
| Aramark Services 144A 5.00% | ||||||
| 2/1/28 # | 65,000 | 63,863 | ||||
| Ashtead Capital | ||||||
| 144A 4.375% 8/15/27 # | 330,000 | 318,863 | ||||
| 144A 5.25% 8/1/26 # | 200,000 | 206,000 | ||||
| Avis Budget Car Rental 144A | ||||||
| 6.375% 4/1/24 # | 135,000 | 135,000 | ||||
| Covanta Holding 5.875% 7/1/25 | 210,000 | 209,889 | ||||
| ESH Hospitality 144A 5.25% | ||||||
| 5/1/25 # | 290,000 | 281,663 | ||||
| GEO Group | ||||||
| 5.875% 1/15/22 | 500,000 | 509,685 | ||||
| 5.875% 10/15/24 | 65,000 | 63,700 | ||||
| 6.00% 4/15/26 | 150,000 | 145,500 | ||||
| Herc Rentals 144A 7.75% 6/1/24 # | 110,000 | 119,179 | ||||
| Iron Mountain US Holdings 144A | ||||||
| 5.375% 6/1/26 # | 215,000 | 204,787 | ||||
| KAR Auction Services 144A 5.125% | ||||||
| 6/1/25 # | 95,000 | 93,337 | ||||
| Prime Security Services Borrower | ||||||
| 144A 9.25% 5/15/23 # | 411,000 | 441,332 | ||||
| Scientific Games International | ||||||
| 10.00% 12/1/22 | 370,000 | 392,699 | ||||
| TMS International 144A 7.25% | ||||||
| 8/15/25 # | 10,000 | 10,100 | ||||
| United Rentals North America | ||||||
| 5.50% 5/15/27 | 585,000 | 585,000 | ||||
| 5.875% 9/15/26 | 20,000 | 20,675 | ||||
| 4,016,809 | ||||||
| Technology & Electronics – 1.84% | ||||||
| CDK Global | ||||||
| 5.00% 10/15/24 | 175,000 | 179,813 | ||||
| 5.875% 6/15/26 | 260,000 | 267,576 | ||||
| CDW Finance 5.00% 9/1/25 | 95,000 | 94,881 | ||||
| CommScope Technologies | ||||||
| 144A 5.00% 3/15/27 # | 235,000 | 229,125 | ||||
| 144A 6.00% 6/15/25 # | 125,000 | 130,000 | ||||
| First Data 144A 5.75% 1/15/24 # | 350,000 | 358,313 | ||||
| Infor US 6.50% 5/15/22 | 185,000 | 188,324 | ||||
| RP Crown Parent 144A 7.375% | ||||||
| 10/15/24 # | 20,000 | 20,694 | ||||
| Sensata Technologies UK Financing | ||||||
| 144A 6.25% 2/15/26 # | 200,000 | 211,250 | ||||
| 1,679,976 | ||||||
| Telecommunications – 1.84% | ||||||
| CyrusOne 5.375% 3/15/27 | 170,000 | 171,275 | ||||
| Level 3 Financing 5.375% 5/1/25 | 322,000 | 318,780 | ||||
| Sprint | ||||||
| 7.125% 6/15/24 | 190,000 | 197,600 | ||||
| 7.625% 3/1/26 | 10,000 | 10,527 | ||||
| 7.875% 9/15/23 | 103,000 | 111,111 | ||||
| Sprint Communications 7.00% | ||||||
| 8/15/20 | 136,000 | 142,800 | ||||
| T-Mobile USA 6.50% 1/15/26 | 305,000 | 323,205 | ||||
| Zayo Group | ||||||
| 144A 5.75% 1/15/27 # | 75,000 | 75,375 | ||||
| 6.375% 5/15/25 | 315,000 | 330,356 | ||||
| 1,681,029 | ||||||
6 NQ-DDF [8/18] 10/18 (621292)
(Unaudited)
| Principal | Value | |||||
| amount° | (US $) | |||||
| Corporate Bonds (continued) | ||||||
| Transportation – 0.23% | ||||||
| XPO Logistics 144A 6.125% | ||||||
| 9/1/23 # | 201,000 | $ | 207,784 | |||
| 207,784 | ||||||
| Utilities – 1.54% | ||||||
| AES | ||||||
| 5.50% 4/15/25 | 160,000 | 165,200 | ||||
| 6.00% 5/15/26 | 25,000 | 26,563 | ||||
| Calpine | ||||||
| 144A 5.25% 6/1/26 # | 390,000 | 369,654 | ||||
| 5.50% 2/1/24 | 100,000 | 92,173 | ||||
| 5.75% 1/15/25 | 160,000 | 146,000 | ||||
| 144A 5.875% 1/15/24 # | 20,000 | 20,225 | ||||
| Emera 6.75% 6/15/76 µ | 180,000 | 191,722 | ||||
| Enel 144A 8.75% 9/24/73 #µ | 200,000 | 218,750 | ||||
| Vistra Energy 144A 8.00% | ||||||
| 1/15/25 # | 158,000 | 174,590 | ||||
| 1,404,877 | ||||||
| Total Corporate Bonds | ||||||
| (cost $33,557,305) | 33,311,187 | |||||
| Number of | ||||||
| shares | ||||||
| Master Limited Partnership – 0.30% | ||||||
| Ares Management | 12,800 | 272,640 | ||||
| Total Master Limited | ||||||
| Partnership (cost $205,312) | 272,640 | |||||
| Preferred Stock – 0.52% | ||||||
| Bank of America 6.50% µψ | 220,000 | 237,600 | ||||
| DDR 6.50% ψ | 2,500 | 62,750 | ||||
| GMAC Capital Trust I | ||||||
| 8.099% (LIBOR03M + | ||||||
| 5.785%) 2/15/40 ● | 2,000 | 53,600 | ||||
| Washington Prime Group | ||||||
| 6.875% ψ | 5,800 | 122,960 | ||||
| Total Preferred Stock | ||||||
| (cost $456,205) | 476,910 | |||||
| Warrant – 0.00% | ||||||
| Wheeler Real Estate | ||||||
| Investment Trust strike | ||||||
| price $44, expiration date | ||||||
| 4/29/19 † | 7,617 | 135 | ||||
| Total Warrant (cost $63) | 135 | |||||
| Principal | ||||||
| amount° | ||||||
| Short-Term Investments – 3.84% | ||||||
| Repurchase Agreements – 3.84% | ||||||
| Bank of America Merrill Lynch | ||||||
| 1.88%, dated 8/31/18, to | ||||||
| be repurchased on 9/4/18, | ||||||
| repurchase price $569,002 | ||||||
| (collateralized by US | ||||||
| government obligations | ||||||
| 1.875%–2.00% | ||||||
| 7/31/22–6/30/24; market | ||||||
| value $580,261) | 568,883 | 568,883 | ||||
| Bank of Montreal | ||||||
| 1.85%, dated 8/31/18, to | ||||||
| be repurchased on 9/4/18, | ||||||
| repurchase price | ||||||
| $1,280,250 (collateralized | ||||||
| by US government | ||||||
| obligations 0.00%–4.25% | ||||||
| 10/31/18–2/15/48; market | ||||||
| value $1,305,587) | 1,279,987 | 1,279,987 | ||||
| BNP Paribas | ||||||
| 1.93%, dated 8/31/18, to | ||||||
| be repurchased on 9/4/18, | ||||||
| repurchase price | ||||||
| $1,654,485 (collateralized | ||||||
| by US government | ||||||
| obligations 0.00%–4.75% | ||||||
| 11/23/18-8/15/47; market | ||||||
| value $1,687,213) | 1,654,130 | 1,654,130 | ||||
| Total Short-Term | ||||||
| Investments | ||||||
| (cost $3,503,000) | 3,503,000 | |||||
| Total Value of | ||||||
| Securities – 143.15% | ||||||
| (cost $105,890,634) | 130,529,226 | |||||
| Borrowing Under Line of | ||||||
| Credit – (43.87%) | (40,000,000) | |||||
| Liabilities Net of | ||||||
| Receivables and Other | ||||||
| Assets – 0.72% | 651,820 | |||||
| Net Assets Applicable to | ||||||
| 7,688,158 Shares | ||||||
| Outstanding – 100.00% | $ | 91,181,046 | ||||
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Aug. 31, 2018, the aggregate value of Rule 144A securities was $17,280,735, which represents 18.95% of the Fund’s net assets. |
| ❆ | PIK. 100% of the income received was in the form of cash. |
(continues) NQ-DDF [8/18] 10/18 (621292) 7
Schedule of investments
Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 2 in “Notes.” |
| ° | Principal amount shown is stated in US Dollars unless noted that the security is denominated in another currency. |
| µ | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at Aug. 31, 2018. Rate will reset at a future date. |
| ψ | No contractual maturity date. |
| † | Non-income producing security. |
| ● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at Aug. 31, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
Summary of abbreviations:
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
PIK – Pay-in-kind
REIT – Real Estate Investment Trust
USD – US Dollar
See accompanying notes.
8 NQ-DDF [8/18] 10/18 (621292)
Notes
Delaware Investments® Dividend and Income Fund, Inc.
August 31, 2018 (Unaudited)
1. Significant Accounting Policies
The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by Delaware Investments® Dividend and Income Fund, Inc. (Fund). The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, “Financial Services - Investment Companies.” This report covers the period of time since the Fund’s last fiscal year end, Nov. 30, 2017.
Security Valuation — Equity securities and exchange-traded funds (ETFs), except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities and ETFs traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security or ETF does not trade, the mean between the bid and ask prices will be used, which approximates fair value. Equity securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. US government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Other debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund’s Board of Directors (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. The Fund may use fair value pricing more frequently for securities traded primarily in non-US markets because, among other things, most foreign markets close well before the Fund values its securities, generally as of 4:00pm Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. Whenever such a significant event occurs, the Fund may value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing). Restricted securities are valued at fair value using methods approved by the Board.
2. Investments
US GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.
| Level 1 – | inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded options contracts) |
| Level 2 – | other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities) |
| Level 3 – | Significant unobservable inputs, including the Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities, fair valued securities) |
(continues) NQ-DDF [8/18] 10/18 (621292) 9
(Unaudited)
2. Investments (continued)
Level 3 investments are valued using significant unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of Aug. 31, 2018:
| Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||
| Assets: | ||||||||||||||
| Common Stock | $ | 85,874,112 | $ | — | $ | — | $ | 85,874,112 | ||||||
| Convertible Preferred Stock1 | 543,697 | 626,664 | — | 1,170,361 | ||||||||||
| Corporate Debt | — | 39,232,068 | — | 39,232,068 | ||||||||||
| Master Limited Partnership | 272,640 | — | — | 272,640 | ||||||||||
| Preferred Stock1 | 239,310 | 237,600 | — | 476,910 | ||||||||||
| Warrant | — | 135 | — | 135 | ||||||||||
| Short-Term Investments | — | 3,503,000 | — | 3,503,000 | ||||||||||
| Total Value of Securities | $ | 86,929,759 | $ | 43,599,467 | $ | — | $ | 130,529,226 | ||||||
The security that has been valued at zero on the “Schedule of investments” is considered to be Level 3 investments in this table.
1Security type is valued across multiple levels. Level 1 investments represent exchange-traded investments, Level 2 investments represent investments with observable inputs or matrix-priced instruments, and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 1 investments, Level 2 investments, and Level 3 investments represent the following percentages of the total value of these security types:
| Level 1 | Level 2 | Total | ||||
| Convertible Preferred Stock | 46.46% | 53.54% | 100.00% | |||
| Preferred Stock | 50.18% | 49.82% | 100.00% |
During the period ended Aug. 31, 2018, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to the Fund. This does not include transfers between Level 1 investments and Level 2 investments due to the Fund utilizing international fair value pricing during the period. In accordance with the fair valuation procedures described in Note 1, international fair value pricing of securities occurs when market volatility exceeds an established rolling threshold. If the threshold is exceeded on a given date, then prices of international securities (those that traded on exchanges that close at a different time than the time that the Fund’s net asset value (NAV) is determined) are established using a separate pricing feed from a third party vendor designed to establish a price for each such security as of the time that the Fund’s NAV is determined. Further, international fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occurring after the close of the exchange or market on which the investment is principally traded, causing a change in classification between levels. The Fund’s policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to the Fund’s net assets. Management has determined not to provide a reconciliation of Level 3 investments as the Level 3 investments are not considered significant to the Fund’s net assets at the beginning, interim, or end of the period. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments were not considered significant to the Fund’s net assets at the end of the period.
3. Recent Accounting Pronouncements
In August 2018, the FASB issued an Accounting Standards Update, ASU 2018-13, which changes certain fair value measurement disclosure requirements. The ASU 2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. The ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.
10 NQ-DDF [8/18] 10/18 (621292)
(Unaudited)
In March 2017, the FASB issued an Accounting Standards Update, ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.
4. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to Aug. 31, 2018 that would require recognition or disclosure in the Fund’s “Schedule of investments.”
NQ-DDF [8/18] 10/18 (621292) 11
Item 2. Controls and Procedures.
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting 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.
File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: