N-Q 1 i00560_utiltele-nq.htm

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 811-06180

 

Name of Fund: BlackRock Utilities & Telecommunications Fund, Inc.

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Utilities & Telecommunications Fund, Inc., 40 East 52nd Street, New York, NY 10022

 

Registrant’s telephone number, including area code: (800) 441-7762

 

Date of fiscal year end: 07/31/2011

 

Date of reporting period: 10/31/2010

 

Item 1 – Schedule of Investments

 


 

 


 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock Utilities and Telecommunications Fund, Inc.

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Common Stocks

 

Shares

 

Value

 







Commercial Services &
Supplies — 0.2%

 

 

 

 

 

 

 

Tetra Tech, Inc. (a)

 

 

9,600

 

$

202,176

 









Diversified Telecommunication
Services — 11.4%

 

 

 

 

 

 

 

AT&T Inc.

 

 

126,462

 

 

3,604,167

 

BCE, Inc.

 

 

33,500

 

 

1,122,585

 

CenturyLink, Inc.

 

 

13,400

 

 

554,492

 

Frontier Communications Corp.

 

 

16,634

 

 

146,047

 

Qwest Communications
International, Inc.

 

 

303,700

 

 

2,004,420

 

Swisscom AG

 

 

1,100

 

 

459,382

 

TW Telecom, Inc. (a)

 

 

31,500

 

 

579,600

 

Telefonica SA

 

 

25,648

 

 

693,073

 

Verizon Communications, Inc.

 

 

69,300

 

 

2,250,171

 

Windstream Corp.

 

 

40,241

 

 

509,451

 

 

 

 

 

 



 

 

 

 

 

 

 

11,923,388

 









Electric Utilities — 33.7%

 

 

 

 

 

 

 

American Electric Power Co., Inc.

 

 

84,800

 

 

3,174,912

 

CPFL Energia SA - ADR

 

 

6,400

 

 

459,712

 

Cia Energetica de Minas Gerais -
ADR

 

 

28,050

 

 

500,412

 

Cleco Corp.

 

 

13,900

 

 

434,653

 

DPL, Inc.

 

 

75,000

 

 

1,957,500

 

Duke Energy Corp.

 

 

129,832

 

 

2,364,241

 

EDP - Energias do Brasil SA

 

 

34,200

 

 

742,813

 

Edison International

 

 

61,700

 

 

2,276,730

 

Entergy Corp.

 

 

44,900

 

 

3,346,397

 

Exelon Corp.

 

 

24,600

 

 

1,004,172

 

FirstEnergy Corp.

 

 

39,700

 

 

1,441,904

 

ITC Holdings Corp.

 

 

51,000

 

 

3,193,110

 

Iberdrola SA

 

 

62,600

 

 

528,895

 

NV Energy, Inc.

 

 

17,600

 

 

240,416

 

NextEra Energy, Inc.

 

 

79,600

 

 

4,381,184

 

Northeast Utilities, Inc.

 

 

31,600

 

 

988,448

 

PPL Corp.

 

 

38,300

 

 

1,030,270

 

Pinnacle West Capital Corp.

 

 

19,300

 

 

794,388

 

Progress Energy, Inc.

 

 

28,800

 

 

1,296,000

 

The Southern Co.

 

 

109,800

 

 

4,158,126

 

Westar Energy, Inc.

 

 

31,000

 

 

784,300

 

 

 

 

 

 



 

 

 

 

 

 

 

35,098,583

 









Gas Utilities — 2.9%

 

 

 

 

 

 

 

Energen Corp.

 

 

10,900

 

 

486,576

 

New Jersey Resources Corp.

 

 

20,400

 

 

825,996

 

Oneok, Inc.

 

 

7,400

 

 

368,668

 

Questar Corp.

 

 

45,700

 

 

775,529

 

UGI Corp.

 

 

19,600

 

 

589,764

 

 

 

 

 

 



 

 

 

 

 

 

 

3,046,533

 









Independent Power Producers &
Energy Traders — 5.7%

 

 

 

 

 

 

 

The AES Corp. (a)

 

 

103,900

 

 

1,240,566

 

 

 

 

 

 

 

 

 

Common Stocks

 

Shares

 

Value

 







Independent Power Producers & Energy
Traders (concluded)

 

 

 

 

 

 

 

AES Tiete SA, Preference Shares

 

 

42,300

 

$

587,120

 

Calpine Corp. (a)

 

 

71,500

 

 

893,750

 

Cia Energetica de Sao Paulo,
Preference ‘B’ Shares

 

 

41,700

 

 

652,367

 

International Power Plc

 

 

136,400

 

 

910,090

 

NRG Energy, Inc. (a)

 

 

86,000

 

 

1,712,260

 

 

 

 

 

 



 

 

 

 

 

 

 

5,996,153

 









Media — 1.3%

 

 

 

 

 

 

 

Comcast Corp., Special Class A

 

 

44,400

 

 

858,252

 

Time Warner Cable, Inc.

 

 

8,000

 

 

462,960

 

 

 

 

 

 



 

 

 

 

 

 

 

1,321,212

 









Multi-Utilities — 21.2%

 

 

 

 

 

 

 

CMS Energy Corp.

 

 

116,100

 

 

2,133,918

 

CenterPoint Energy, Inc.

 

 

71,100

 

 

1,177,416

 

Centrica Plc

 

 

116,300

 

 

618,841

 

Consolidated Edison, Inc.

 

 

32,500

 

 

1,615,900

 

DTE Energy Co.

 

 

9,300

 

 

434,868

 

Dominion Resources, Inc.

 

 

94,174

 

 

4,092,802

 

Integrys Energy Group, Inc.

 

 

7,300

 

 

388,287

 

NSTAR

 

 

27,000

 

 

1,126,170

 

NiSource, Inc.

 

 

20,800

 

 

360,048

 

OGE Energy Corp.

 

 

13,700

 

 

604,992

 

PG&E Corp.

 

 

56,100

 

 

2,682,702

 

Public Service Enterprise Group,
Inc.

 

 

92,400

 

 

2,989,140

 

Sempra Energy

 

 

25,600

 

 

1,369,088

 

United Utilities Group Plc

 

 

63,200

 

 

618,758

 

Wisconsin Energy Corp.

 

 

19,700

 

 

1,172,938

 

Xcel Energy, Inc.

 

 

30,900

 

 

737,274

 

 

 

 

 

 



 

 

 

 

 

 

 

22,123,142

 









Oil, Gas & Consumable
Fuels — 6.5%

 

 

 

 

 

 

 

EOG Resources, Inc.

 

 

8,600

 

 

823,192

 

EQT Corp.

 

 

18,000

 

 

673,920

 

PetroHawk Energy Corp. (a)

 

 

11,600

 

 

197,316

 

QEP Resources, Inc.

 

 

45,700

 

 

1,509,471

 

Range Resources Corp.

 

 

8,200

 

 

306,598

 

Southwestern Energy Co. (a)

 

 

18,100

 

 

612,685

 

Spectra Energy Corp.

 

 

51,616

 

 

1,226,912

 

Talisman Energy, Inc.

 

 

19,500

 

 

353,730

 

Williams Cos., Inc.

 

 

48,300

 

 

1,039,416

 

 

 

 

 

 



 

 

 

 

 

 

 

6,743,240

 









Water Utilities — 2.3%

 

 

 

 

 

 

 

American States Water Co.

 

 

3,400

 

 

126,990

 

American Water Works Co, Inc.

 

 

43,200

 

 

1,031,616

 

Aqua America, Inc.

 

 

32,400

 

 

697,572

 

California Water Service Group

 

 

14,200

 

 

530,228

 

 

 

 

 

 

 

 

 


Portfolio Abbreviations


 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:


 

 

ADR

American Depositary Receipts

CZK

Czech Koruna

USD

U.S. Dollar


 

 

 

 


 

BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC.

OCTOBER 31, 2010

1



 

 


 

 

Schedule of Investments (continued)

BlackRock Utilities and Telecommunications Fund, Inc.

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Common Stocks

 

Shares

 

Value

 







Water Utilities (concluded)

 

 

 

 

 

 

 

Cia Saneamento, Preference
Shares (a)(b)

 

 

314

 

 

 

 

 

 

 

 



 

 

 

 

 

 

$

2,386,406

 









Wireless Telecommunication Services — 10.9%

 

 

 

 

 

 

 

America Movil, SA de CV - ADR

 

 

24,700

 

 

1,414,322

 

American Tower Corp., Class A (a)

 

 

14,600

 

 

753,506

 

Cellcom Israel Ltd.

 

 

11,200

 

 

378,448

 

Clearwire Corp., Class A (a)

 

 

72,800

 

 

516,152

 

Crown Castle International
Corp. (a)

 

 

18,000

 

 

776,160

 

Millicom International Cellular SA

 

 

8,200

 

 

775,720

 

NII Holdings, Inc. (a)

 

 

34,400

 

 

1,438,264

 

NTELOS Holdings Corp.

 

 

20,400

 

 

370,668

 

Rogers Communications, Inc.,
Class B

 

 

16,500

 

 

601,177

 

SBA Communications Corp.,
Class A (a)

 

 

38,800

 

 

1,523,288

 

Sprint Nextel Corp. (a)

 

 

179,500

 

 

739,540

 

Vivo Participacoes SA - ADR

 

 

13,600

 

 

389,504

 

Vodafone Group Plc - ADR

 

 

60,512

 

 

1,664,685

 

 

 

 

 

 



 

 

 

 

 

 

 

11,341,434

 









Total Long-Term Investments
(Cost – $71,989,724) – 96.1%

 

 

 

 

 

100,182,267

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 









BlackRock Liquidity Funds,
TempCash, Institutional Class,
0.22% (c)(d)

 

 

124,131

 

 

124,131

 









Total Short-Term Securities
(Cost – $124,131) – 0.1%

 

 

 

 

 

124,131

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Total Investments
(Cost – $72,113,855*) – 96.2%

 

 

 

 

 

100,306,398

 

Other Assets Less Liabilities – 3.8%

 

 

 

 

 

3,934,585

 

 

 

 

 

 



 

Net Assets – 100.0%

 

 

 

 

$

104,240,983

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 










 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

72,223,643

 

 

 

 



 

 

Gross unrealized appreciation

 

$

28,693,585

 

 

Gross unrealized depreciation

 

 

(610,830

)

 

 

 



 

 

Net unrealized appreciation

 

$

28,082,755

 

 

 

 



 


 

 

(a)

Non-income producing security.

 

 

(b)

Convertible security.

 

 

(c)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 











 

Affiliate

 

Shares
Held at
July 31, 2010

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 

 











 

BlackRock
Liquidity
Funds,
TempCash,
Institutional
Class

 

2,505,607

 

(2,381,476)

 

124,131

 

$ 1,288

 

 












 

 

(d)

Represents the current yield as of report date.

 

 

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

Foreign currency exchange contracts as of October 31, 2010 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 











Currency
Purchased

 

Currency
Sold

 

Counter-
party

 

Settlement
Date

 

Unrealized
Depreciation

 











USD

251,856

 

CZK

4,528,217

 

State
Street
Global
Markets,
LLC

 

11/02/10

 

$

(4,026

)















 

 

 

 


2

BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC.

OCTOBER 31, 2010

 



 

 


 

 

Schedule of Investments (concluded)

BlackRock Utilities and Telecommunications Fund, Inc.


 

 

 

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivatives, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivatives)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For 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 as contained in its annual report.

The following tables summarize the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments and derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Services & Supplies

 

$

202,176

 

 

 

 

 

$

202,176

 

Diversified Telecommunication Services

 

 

10,770,933

 

$

1,152,455

 

 

 

 

11,923,388

 

Electric Utilities

 

 

34,569,688

 

 

528,895

 

 

 

 

35,098,583

 

Gas Utilities

 

 

3,046,533

 

 

 

 

 

 

3,046,533

 

Independent Power Producers & Energy Traders

 

 

5,086,063

 

 

910,090

 

 

 

 

5,996,153

 

Media

 

 

1,321,212

 

 

 

 

 

 

1,321,212

 

Multi-Utilities

 

 

20,885,543

 

 

1,237,599

 

 

 

 

22,123,142

 

Oil, Gas & Consumable Fuels

 

 

6,743,240

 

 

 

 

 

 

6,743,240

 

Water Utilities

 

 

2,386,406

 

 

 

 

 

 

2,386,406

 

Wireless Telecommunication Services

 

 

11,341,434

 

 

 

 

 

 

11,341,434

 

Short-Term Securities

 

 

124,131

 

 

 

 

 

 

124,131

 















Total

 

$

96,477,359

 

$

3,829,039

 

 

 

$

100,306,398

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 



Derivative Financial Instruments1

 



Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 















Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency
exchange contracts

 

 

 

$

(4,026

)

 

 

$

(4,026

)

 

 














 

 

1

Derivative financial instruments are foreign currency exchange contracts. Foreign currency exchange contracts are shown at the unrealized appreciation/depreciation on the instrument.


 

 

 

 


 

BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC.

OCTOBER 31, 2010

3


Item 2 –

Controls and Procedures

 

 

2(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″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(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.

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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.

 

 

 

BlackRock Utilities & Telecommunications Fund, Inc.

   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer of
    BlackRock Utilities & Telecommunications Fund, Inc.
   
  Date: December 22, 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: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Utilities & Telecommunications Fund, Inc.
   
  Date: December 22, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Utilities & Telecommunications Fund, Inc.
     
  Date: December 22, 2010