11 Hanover Square, 12th Floor
New York, NY
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10005
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(Address of principal executive offices)
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(Zip Code)
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DIVIDEND AND INCOME FUND
|
|||||||
SCHEDULE OF PORTFOLIO INVESTMENTS
|
|||||||
September 30, 2014
|
|||||||
(Unaudited)
|
|||||||
Shares
|
Value
|
||||||
Common Stocks (88.13%)
|
|||||||
Agricultural Chemicals (1.06%)
|
|||||||
45,000 |
Potash Corporation of Saskatchewan Inc.
|
$ | 1,555,200 | ||||
Arrangement of Transportation of Freight & Cargo (1.13%)
|
|||||||
25,000 |
C.H. Robinson Worldwide, Inc.
|
1,658,000 | |||||
Beverages (2.45%)
|
|||||||
45,000 |
Coca-Cola Company (a)
|
1,919,700 | |||||
18,000 |
PepsiCo, Inc. (a)
|
1,675,620 | |||||
3,595,320 | |||||||
Biological Products (1.16%)
|
|||||||
12,100 |
Amgen Inc. (a)
|
1,699,566 | |||||
Cable & Other Pay Television Services (1.93%)
|
|||||||
32,500 |
Rogers Communications Inc.
|
1,216,150 | |||||
21,400 |
Time Warner Inc. (a)
|
1,609,494 | |||||
2,825,644 | |||||||
Cigarettes (0.57%)
|
|||||||
10,000 |
Philip Morris International, Inc. (a)
|
834,000 | |||||
Commercial Banks (1.81%)
|
|||||||
149,000 |
Banco Santander (Brasil) S.A.
|
974,460 | |||||
60,000 |
Westpac Banking Corporation
|
1,686,600 | |||||
2,661,060 | |||||||
Computer Communications Equipment (1.46%)
|
|||||||
85,000 |
Cisco Systems, Inc. (a)
|
2,139,450 | |||||
Construction, Mining & Materials Handling Machinery & Equipment (0.74%)
|
|||||||
13,500 |
Dover Corp. (a)
|
1,084,455 | |||||
Crude Petroleum & Natural Gas (5.18%)
|
|||||||
16,000 |
Apache Corporation
|
1,501,920 | |||||
55,000 |
Canadian Natural Resources Limited
|
2,136,200 | |||||
30,000 |
Devon Energy Corporation
|
2,045,400 | |||||
20,000 |
Occidental Petroleum Corporation (a)
|
1,923,000 | |||||
7,606,520 | |||||||
Deep Sea Foreign Transportation of Freight (0.73%)
|
|||||||
50,000 |
Seaspan Corp. (a)
|
1,075,000 | |||||
Dolls & Stuffed Toys (0.52%)
|
|||||||
25,000 |
Mattel, Inc. (a)
|
766,250 | |||||
Drilling Oil & Gas Wells (0.73%)
|
|||||||
33,700 |
Transocean Ltd.
|
1,077,389 | |||||
Electric Services (2.42%)
|
|||||||
11,000 |
Entergy Corp. (a)
|
850,630 | |||||
18,600 |
FirstEnergy Corp. (a)
|
624,402 | |||||
47,500 |
Southern Company (a)
|
2,073,375 | |||||
3,548,407 | |||||||
Electromedical & Electrotherapeutic Apparatus (0.85%)
|
|||||||
20,200 |
Medtronic, Inc. (a)
|
1,251,390 | |||||
Electronic & Other Electrical Equipment (1.95%)
|
|||||||
111,900 |
General Electric Company (a)
|
2,866,878 | |||||
Electronic & Other Services Combined (2.27%)
|
|||||||
51,500 |
Exelon Corp. (a)
|
1,755,635 | |||||
35,000 |
PG&E Corp. (a)
|
1,576,400 | |||||
3,332,035 | |||||||
Farm Machinery & Equipment (1.75%)
|
|||||||
25,000 |
AGCO Corporation
|
1,136,500 | |||||
17,500 |
Deere & Company
|
1,434,825 | |||||
2,571,325 | |||||||
Fire, Marine & Casualty Insurance (2.73%)
|
|||||||
20,000 |
Ace Ltd. (a)
|
2,097,400 | |||||
40,000 |
W.R. Berkley Corporation
|
1,912,000 | |||||
4,009,400 | |||||||
Food & Kindred Products (0.73%)
|
|||||||
25,000 |
Campbell Soup Co. (a)
|
1,068,250 | |||||
Hospital & Medical Service Plans (1.39%)
|
|||||||
17,100 |
WellPoint, Inc.
|
2,045,502 | |||||
Household Audio & Video Equipment (0.12%)
|
|||||||
6,750 |
Knowles Corporation
|
178,875 | |||||
Leather & Leather Products (0.73%)
|
|||||||
30,000 |
Coach, Inc.
|
1,068,300 | |||||
Life Insurance (1.46%)
|
|||||||
40,000 |
MetLife, Inc. (a)
|
2,148,800 | |||||
Metal Mining (1.17%)
|
|||||||
35,000 |
Rio Tinto PLC ADR
|
1,721,300 | |||||
Mining Machinery & Equipment (1.02%)
|
|||||||
27,500 |
Joy Global Inc.
|
1,499,850 | |||||
Miscellaneous Food Preparations & Kindred Products (0.91%)
|
|||||||
20,000 |
McCormick & Company, Incorporated
|
1,338,000 | |||||
Motor Vehicle Parts & Accessories (1.59%)
|
|||||||
25,000 |
Honeywell International, Inc. (a)
|
2,328,000 | |||||
Motor Vehicles & Passenger Car Bodies (2.11%)
|
|||||||
120,000 |
Ford Motor Company
|
1,774,800 | |||||
41,500 |
General Motors Company
|
1,325,510 | |||||
3,100,310 | |||||||
National Commercial Banks (3.30%)
|
|||||||
20,200 |
Capital One Financial Corporation
|
1,648,724 | |||||
39,000 |
U.S. Bancorp
|
1,631,370 | |||||
30,000 |
Wells Fargo & Company
|
1,556,100 | |||||
4,836,194 | |||||||
Natural Gas Transmission (1.10%)
|
|||||||
42,000 |
Kinder Morgan, Inc.
|
1,610,280 | |||||
Natural Gas Transmission & Distribution (1.10%)
|
|||||||
41,000 |
Spectra Energy Corp.
|
1,609,660 | |||||
Oil & Gas Field Machinery & Equipment (1.10%)
|
|||||||
19,200 |
National Oilwell Varco, Inc.
|
1,461,120 | |||||
4,800 |
NOW Inc.
|
145,968 | |||||
1,607,088 | |||||||
Periodicals: Publishing or Publishing & Printing (0.04%)
|
|||||||
2,675 |
Time Inc.
|
62,675 | |||||
Petroleum Refining (3.70%)
|
|||||||
15,000 |
Chevron Corp. (a)
|
1,789,800 | |||||
11,000 |
ConocoPhillips (a)
|
841,720 | |||||
16,500 |
Exxon Mobil Corp. (a)
|
1,551,825 | |||||
5,500 |
Phillips 66 (a)
|
447,205 | |||||
21,800 |
Suncor Energy Inc.
|
788,070 | |||||
5,418,620 | |||||||
Pharmaceutical Preparations (5.14%)
|
|||||||
23,100 |
Johnson & Johnson (a)
|
2,462,229 | |||||
40,300 |
Merck & Co., Inc. (a)
|
2,388,984 | |||||
37,924 |
Pfizer Inc.
|
1,121,413 | |||||
27,900 |
Sanofi ADR (a)
|
1,574,397 | |||||
7,547,023 | |||||||
Pipelines (1.47%)
|
|||||||
45,000 |
Enbridge Inc.
|
2,154,600 | |||||
Plastic Mail, Synth Resin/Rubber, Cellulose (1.12%)
|
|||||||
50,000 |
Rayonier Advanced Materials Inc.
|
1,645,500 | |||||
Printed Circuit Boards (1.13%)
|
|||||||
110,000 |
Kimball International Inc. Class B
|
1,655,500 | |||||
Radio & TV Broadcasting & Communications Equipment (1.03%)
|
|||||||
45,600 |
NTT DOCOMO, INC.
|
763,344 | |||||
10,000 |
QUALCOMM, Incorporated (a)
|
747,700 | |||||
1,511,044 | |||||||
Railroads, Line-Haul Operating (3.51%)
|
|||||||
108,500 |
CSX Corp. (a)
|
3,478,510 | |||||
15,000 |
Norfolk Southern Corp.
|
1,674,000 | |||||
5,152,510 | |||||||
Real Estate (0.63%)
|
|||||||
50,000 |
NorthStar Asset Management Group Inc.
|
921,000 | |||||
Retail - Department Stores (1.20%)
|
|||||||
28,600 |
Kohl's Corporation
|
1,745,458 | |||||
Retail - Eating Places (1.20%)
|
|||||||
18,500 |
McDonald's Corp. (a)
|
1,753,985 | |||||
Retail - Variety Stores (1.70%)
|
|||||||
16,000 |
Target Corp. (a)
|
1,002,880 | |||||
19,400 |
Wal-Mart Stores, Inc.
|
1,483,518 | |||||
2,486,398 | |||||||
Savings Institution, Federally Chartered (0.60%)
|
|||||||
60,000 |
People's United Financial, Inc. (a)
|
868,200 | |||||
Services - Business Services (2.12%)
|
|||||||
83,000 |
The Western Union Company (a)
|
1,331,320 | |||||
135,000 |
Xerox Corporation
|
1,786,050 | |||||
3,117,370 | |||||||
Services - Medical Laboratories (1.16%)
|
|||||||
28,000 |
Quest Diagnostics Incorporated
|
1,699,040 | |||||
Services - Miscellaneous Repair Services (0.02%)
|
|||||||
756 |
Aquilex Holdings LLC Units (b)
|
34,393 | |||||
Services - Prepackaged Software (2.12%)
|
|||||||
30,000 |
Microsoft Corporation (a)
|
1,390,800 | |||||
45,000 |
Oracle Corporation
|
1,722,600 | |||||
3,113,400 | |||||||
Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics (1.03%)
|
|||||||
18,000 |
The Procter & Gamble Company (a)
|
1,507,320 | |||||
Specialty Cleaning, Polishing and Sanitation Preparations (1.11%)
|
|||||||
17,000 |
Clorox Co. (a)
|
1,632,680 | |||||
Surety Insurance (0.97%)
|
|||||||
100,000 |
Old Republic International Corp.
|
1,428,000 | |||||
Surgical & Medical Instruments & Apparatus (2.15%)
|
|||||||
27,000 |
Baxter International Inc. (a)
|
1,937,790 | |||||
10,700 |
Becton, Dickinson and Company
|
1,217,767 | |||||
3,155,557 | |||||||
Telephone Communications (2.70%)
|
|||||||
43,000 |
CenturyLink, Inc.
|
1,758,270 | |||||
150,000 |
Orange ADR
|
2,211,000 | |||||
3,969,270 | |||||||
Title Insurance (1.20%)
|
|||||||
65,000 |
First American Financial Corporation
|
1,762,800 | |||||
Water Transportation (0.65%)
|
|||||||
23,800 |
Carnival Corp. (a)
|
956,046 | |||||
Wholesale - Groceries & Related Products (1.16%)
|
|||||||
45,000 |
Sysco Corp.
|
1,707,750 | |||||
Total common stocks (Cost $107,322,001)
|
129,323,837 | ||||||
Principal
|
|||||||
Amount
|
|||||||
Corporate Bonds and Notes (1.97%)
|
|||||||
Cable & Other Pay Television Services (0.36%)
|
|||||||
500,000 |
CCO Holdings LLC, 7.00%, 1/15/19 (a)
|
520,625 | |||||
Cogeneration Services & Small Power Producers (0.33%)
|
|||||||
450,000 |
Covanta Holding Corp., 7.25%, 12/1/20 (a)
|
481,500 | |||||
Electric Services (0.41%)
|
|||||||
541,411 |
Elwood Energy LLC, 8.159%, 7/5/26 (a)
|
607,734 | |||||
Hospital & Medical Service Plans (0.18%)
|
|||||||
250,000 |
Health Net, Inc., 6.375%, 6/1/17 (a)
|
270,625 | |||||
Oil & Gas Field Exploration Services (0.12%)
|
|||||||
169,000 |
CGG-Veritas, 7.75%, 5/15/17 (a)
|
170,267 | |||||
Special Industry Machinery (0.35%)
|
|||||||
500,000 |
Novelis, Inc., 8.375%, 12/15/17 (a)
|
520,625 | |||||
Wholesale - Electronic Parts & Equipment, NEC (0.22%)
|
|||||||
300,000 |
Brightstar Corp., 9.50%, 12/1/16 (a) (c)
|
319,125 | |||||
Total corporate bonds and notes (Cost $2,740,966)
|
2,890,501 | ||||||
Shares
|
|||||||
Real Estate Investment Trusts (4.30%)
|
|||||||
34,500 |
HCP, Inc.
|
1,369,995 | |||||
22,500 |
Health Care REIT, Inc.
|
1,403,325 | |||||
22,650 |
Mid-America Apartment Communities, Inc.
|
1,486,972 | |||||
200,000 |
New Residential Investment Corp.
|
1,166,000 | |||||
50,000 |
NorthStar Realty Finance Corp.
|
883,500 | |||||
Total real estate investment trusts (Cost $5,933,690)
|
6,309,792 | ||||||
Units
|
|||||||
Reorganization Interests (0.06%)
|
|||||||
676,935 |
EME Reorganization Trust (d)
|
93,146 | |||||
813,527 |
Penson Technologies LLC (b) (d)
|
0 | |||||
Total reorganization interests (Cost $ 0 )
|
93,146 | ||||||
Shares
|
|||||||
Master Limited Partnerships (1.10%)
|
|||||||
Natural Gas Transmission (1.10%)
|
|||||||
40,000 |
Enterprise Products Partners LP (a) (Cost $374,214)
|
1,612,000 | |||||
Preferred Stocks (1.45%)
|
|||||||
Financial (1.45%)
|
|||||||
79,469 |
Annaly Capital Management, Inc., 7.625% Series C
|
1,951,759 | |||||
7,473 |
Hatteras Financial Corp., 7.625% Series A
|
177,110 | |||||
80,000 |
Solar Cayman Ltd. (a) (b) (d)
|
0 | |||||
Total preferred stocks (Cost $2,515,814)
|
2,128,869 | ||||||
Money Market Fund (2.86%)
|
|||||||
4,191,147 |
SSgA Money Market Fund, 7 day annualized yield 0.00% (Cost $4,191,147)
|
4,191,147 | |||||
Total investments (Cost $123,077,832) (99.87%)
|
146,549,292 | ||||||
Cash and other assets in excess of liabilities (0.13%)
|
186,385 | ||||||
Net assets (100.00%)
|
$ | 146,735,677 | |||||
(a) All or a portion of these securities have been segregated as collateral pursuant to the bank credit facility. As of
|
|||||||
September 30, 2014, the value of securities pledged as collateral was $51,002,350 and there were no securities
|
|||||||
on loan under the lending agreement.
|
|||||||
(b) Illiquid and/or restricted security that has been fair valued.
|
|||||||
(c) These securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These
|
|||||||
securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
|
|||||||
(d) Non-income producing.
|
|||||||
ADR
|
American Depositary Receipt
|
||||||
LLC
|
Limited Liability Company
|
||||||
LP
|
Limited Partnership
|
||||||
PLC
|
Public Limited Company
|
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments at value | ||||||||||||||||
Common stocks | $ | 129,289,444 | $ | - | $ | 34,393 | $ | 129,323,837 | ||||||||
Corporate bonds and notes | - | 2,890,501 | - | 2,890,501 | ||||||||||||
Real estate investment trusts | 6,309,792 | - | - | 6,309,792 | ||||||||||||
Reorganization interests | 93,146 | - | - | 93,146 | ||||||||||||
Master limited partnerships | 1,612,000 | - | - | 1,612,000 | ||||||||||||
Preferred stocks | 2,128,869 | - | - | 2,128,869 | ||||||||||||
Money market fund | 4,191,147 | - | - | 4,191,147 | ||||||||||||
Total investments at value | $ | 143,624,398 | $ | 2,890,501 | $ | 34,393 | $ | 146,549,292 |
Common Stocks
|
Reorganization Interests
|
Preferred Stocks
|
Total
|
|||||||||||||
Balance at December 31, 2013
|
$ | 130,086 | $ | - | $ | 0 | $ | 130,086 | ||||||||
Proceeds from sales
|
- | - | - | - | ||||||||||||
Realized loss
|
- | - | - | - | ||||||||||||
Transfers into (out of) level 3
|
- | 0 | - | - | ||||||||||||
Change in unrealized depreciation
|
(95,693 | ) | - | - | (95,693 | ) | ||||||||||
Balance at September 30, 2014
|
$ | 34,393 | $ | 0 | $ | 0 | $ | 34,393 | ||||||||
Net change in unrealized depreciation attributable to assets still held as level 3 at September 30, 2014
|
$ | (95,693 | ) | $ | 0 | $ | - | $ | (95,693 | ) | ||||||
September 30, 2014
|
Fair Value
|
Valuation Technique
|
Unobservable Input
|
Range
|
||||||
Common Stocks
|
||||||||||
Services - Miscellaneous Repair Services
|
$ | 34,393 |
Share of taxable income and comparable exchange offer
|
Discount rate for lack of marketability
|
35 | % | ||||
Reorganization Interests
|
$ | 0 |
Cost; last known market value for predecessor securities; estimated recovery on liquidation
|
Discount rate for lack of marketability
|
100 | % | ||||
Preferred stock
|
||||||||||
Financial
|
$ | 0 |
Most recently reported net asset value
|
Discount rate for lack of marketability
|
100 | % |
Acquisition
|
|||||||||
Date
|
Cost
|
Value
|
|||||||
Aquilex Holdings LLC
|
12/23/09
|
$ | 496,372 | $ | 34,393 | ||||
Penson Technologies LLC
|
4/9/14
|
0 | 0 | ||||||
Solar Cayman Ltd.
|
3/7/07
|
568,802 | 0 | ||||||
$ | 1,065,174 | $ | 34,393 | ||||||
Percent of net assets
|
0.73 | % | 0.02 | % |
(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, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.
|
(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) 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.
|
(a)
|
Certifications of the registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the 1940 Act.
|