N-Q 1 d698802dnq.htm STRATEGIC GLOBAL INCOME FUND, INC. Strategic Global Income Fund, Inc.

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: 811-06475

 

 

Strategic Global Income Fund, Inc.

 

 

(Exact name of registrant as specified in charter)

1285 Avenue of the Americas, New York, New York 10019-6028

 

 

(Address of principal executive offices) (Zip code)

Mark F. Kemper, Esq.

UBS Global Asset Management

1285 Avenue of the Americas

New York, NY 10019-6028

(Name and address of agent for service)

Copy to:

Jack W. Murphy, Esq.

Dechert LLP

1900 K Street, NW

Washington, DC 20006

 

Registrant’s telephone number, including area code: 212-821 3000

Date of fiscal year end: November 30

Date of reporting period: February 28, 2014

Item 1.  Schedule of Investments

Strategic Global Income Fund, Inc.

 

Industry diversification (unaudited)

As a percentage of net assets

As of February 28, 2014

 

 

  

Bonds

   

Corporate bonds

   

Aerospace & defense

      0.06 % 

Automobiles

      0.03  

Building products

      0.24  

Capital markets

      0.84  

Chemicals

      0.74  

Commercial banks

      9.66  

Commercial services & supplies

      0.11  

Computers & peripherals

      0.78  

Construction materials

      2.00  

Consumer finance

      2.19  

Diversified financial services

      6.87  

Diversified telecommunication services

      0.18  

Electric utilities

      0.24  

Electrical equipment

      0.01  

Electronic equipment, instruments & components

      0.03  

Energy equipment & services

      0.33  

Entertainment

      0.04  

Food & staples retailing

      0.22  

Gas utilities

      0.26  

Health care providers & services

      0.06  

Health care technology

      0.03  

Hotels, restaurants & leisure

      0.20  

Independent power producers & energy traders

      0.07  

Insurance

      1.93  

Machinery

      0.63  

Media

      1.21  

Metals & mining

      2.63  

Oil, gas & consumable fuels

      6.46  

Paper & forest products

      0.01  

Real estate investment trust (REIT)

      0.01  

Road & rail

      0.38  

Specialty retail

      0.04  

Tobacco

      0.25  

Trading companies & distributors

      0.34  

Transportation infrastructure

      1.37  

Wireless telecommunication services

      0.06  
  

 

 

  

Total corporate bonds

      40.51   
  

 

 

  

Asset-backed securities

      1.30  

Collateralized debt obligations

      4.92  

Commercial mortgage-backed securities

      6.62  

Mortgage & agency debt securities

      10.59  

Municipal bonds

      2.62  

US government obligations

      3.42  

Non-US government obligations

      23.95  

Structured notes

      2.55  

Supranational bonds

      1.46  
  

 

 

  

Total bonds

      97.94   

Common stock

      0.03  

Short-term investment

      1.63  

Options purchased

      0.16  
  

 

 

  

Total investments

      99.76   

Cash and other assets, less liabilities

      0.24  
  

 

 

  

Net assets

      100.00 % 
  

 

 

  
 

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Bonds — 97.94%

      

Corporate bonds — 40.51%

  

Australia — 0.49%

  

Sydney Airport Finance Co., Pty Ltd.,

      

8.000%, due 07/06/15

    AUD     1,000,000      $ 940,778  
     

 

 

  

Brazil — 1.79%

      

Caixa Economica Federal,

      

2.375%, due 11/06/171

    $ 1,050,000        992,250  

Petrobras Global Finance BV,

      

4.375%, due 05/20/23

      1,100,000        997,964  

Petrobras International Finance Co.,

      

5.375%, due 01/27/21

      1,000,000        1,002,800  

6.750%, due 01/27/41

      400,000        386,140  

Vale Overseas Ltd.,

      

6.875%, due 11/21/36

      50,000        53,716  
     

 

 

  
        3,432,870  
     

 

 

  

Canada — 0.04%

      

Teck Resources Ltd.,

      

6.250%, due 07/15/41

      65,000        68,279  
     

 

 

  

Cayman Islands — 0.29%

      

Transocean, Inc.,

      

6.800%, due 03/15/38

      500,000        551,464  
     

 

 

  

China — 0.57%

      

China Lesso Group Holdings Ltd.,

      

7.875%, due 05/13/162

      400,000        417,000  

China Oil & Gas Group Ltd.,

      

5.250%, due 04/25/181

      400,000        403,000  

China Shanshui Cement Group Ltd.,

      

10.500%, due 04/27/172

      260,000        278,850  
     

 

 

  
        1,098,850  
     

 

 

  

Croatia — 0.23%

      

Agrokor DD,

      

8.875%, due 02/01/201

      400,000        433,000  
     

 

 

  

Czech Republic — 0.13%

      

EP Energy AS,

      

5.875%, due 11/01/191

    EUR 165,000        250,051  
     

 

 

  

France — 1.30%

      

Credit Agricole SA,

      

7.875%, due 01/23/241,3,4

    $ 750,000        805,312  

Reseau Ferre de France,

      

5.500%, due 12/01/212

    GBP 860,000        1,690,405  
     

 

 

  
        2,495,717  
     

 

 

  

Georgia — 0.20%

      

Georgian Railway JSC,

      

7.750%, due 07/11/222

    $ 350,000        375,375  
     

 

 

  

Germany — 0.79%

      

Unitymedia KabelBW GmbH,

      

9.625%, due 12/01/192

    EUR 1,000,000        1,514,603  
     

 

 

  

Indonesia — 0.52%

      

Pertamina Persero PT,

      

6.000%, due 05/03/422

    $ 1,150,000        1,001,938  
     

 

 

  

Kazakhstan — 1.06%

      

Kazakhstan Temir Zholy Finance BV,

      

6.950%, due 07/10/422

      350,000        350,875  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Corporate bonds — (Continued)

  

Kazatomprom Natsionalnaya Atomnaya Kompaniya AO,

      

6.250%, due 05/20/152

    $ 1,616,000      $ 1,676,600  
     

 

 

  
        2,027,475  
     

 

 

  

Luxembourg — 1.40%

      

ArcelorMittal,

      

5.000%, due 02/25/17

      1,000,000        1,068,750  

HeidelbergCement Finance SA,

      

8.500%, due 10/31/192

    EUR 800,000        1,422,261  

Intelsat Jackson Holdings SA,

      

7.250%, due 10/15/20

    $ 125,000        135,937  

Wind Acquisition Finance SA,

      

11.750%, due 07/15/171

      50,000        52,938  
     

 

 

  
        2,679,886  
     

 

 

  

Mexico — 1.11%

      

Cemex SAB de CV,

      

5.875%, due 03/25/191

      350,000        360,500  

9.000%, due 01/11/181

      1,630,000        1,776,700  
     

 

 

  
        2,137,200  
     

 

 

  

Netherlands — 2.07%

      

EDP Finance BV,

      

4.900%, due 10/01/191

      1,400,000        1,466,500  

6.000%, due 02/02/181

      1,000,000        1,085,000  

LyondellBasell Industries NV,

      

6.000%, due 11/15/21

      1,200,000        1,414,045  
     

 

 

  
        3,965,545  
     

 

 

  

Norway — 1.75%

      

Eksportfinans ASA,

      

1.600%, due 03/20/14

    JPY     152,000,000        1,491,633  

5.500%, due 06/26/17

    $ 1,750,000        1,859,375  
     

 

 

  
        3,351,008  
     

 

 

  

Russia — 2.39%

      

RSHB Capital SA for OJSC Russian Agricultural Bank,

      

7.750%, due 05/29/182

      1,900,000        2,123,250  

VEB Finance Ltd.,

      

6.800%, due 11/22/252

      900,000        938,250  

VTB Capital SA,

      

6.950%, due 10/17/222

      1,500,000        1,518,750  
     

 

 

  
        4,580,250  
     

 

 

  

South Africa — 0.25%

      

Eskom Holdings SOC Ltd.,

      

6.750%, due 08/06/232

      450,000        470,250  
     

 

 

  

Spain — 0.38%

      

BBVA US Senior SAU,

      

4.664%, due 10/09/15

      700,000        733,460  
     

 

 

  

Turkey — 0.84%

      

Turkiye Halk Bankasi AS,

      

3.875%, due 02/05/202

      1,800,000        1,615,500  
     

 

 

  

Ukraine — 0.41%

      

Naftogaz Ukraine,

      

9.500%, due 09/30/14

      880,000        789,800  
     

 

 

  

United Kingdom — 4.17%

      

Barclays Bank PLC,

      

5.140%, due 10/14/20

      1,000,000        1,082,667  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Corporate bonds — (Continued)

  

Lloyds Bank PLC,

      

6.500%, due 03/24/202

    EUR 900,000      $ 1,482,383  

11.875%, due 12/16/212,3

      1,000,000        1,734,347  

Royal Bank of Scotland Group PLC,

      

6.100%, due 06/10/23

    $ 2,010,000        2,086,064  

Wellcome Trust Finance PLC,

      

4.750%, due 05/28/21

    GBP 860,000        1,604,897  
     

 

 

  
        7,990,358  
     

 

 

  

United States — 17.91%

      

21st Century Fox America, Inc.,

      

6.200%, due 12/15/34

    $ 65,000        75,405  

Allstate Corp.,

      

5.750%, due 08/15/533

      780,000        811,278  

Ally Financial, Inc.,

      

3.500%, due 01/27/19

      550,000        554,125  

6.250%, due 12/01/17

      450,000        506,250  

Altria Group, Inc.,

      

9.950%, due 11/10/38

      161,000        255,363  

Anadarko Petroleum Corp.,

      

6.450%, due 09/15/36

      500,000        593,045  

Bank of America Corp.,

      

4.625%, due 09/14/18

    EUR 1,300,000        1,968,900  

Barrick North America Finance LLC,

      

5.750%, due 05/01/43

    $ 1,015,000        995,709  

BE Aerospace, Inc.,

      

6.875%, due 10/01/20

      100,000        109,750  

Berry Petroleum Co. LLC,

      

6.750%, due 11/01/20

      50,000        52,875  

Burlington Coat Factory Warehouse Corp.,

      

10.000%, due 02/15/19

      25,000        27,812  

Case New Holland Industrial, Inc.,

      

7.875%, due 12/01/17

      1,025,000        1,200,531  

CDW LLC,

      

8.500%, due 04/01/19

      50,000        55,000  

Chrysler Group LLC,

      

8.000%, due 06/15/19

      55,000        60,500  

CIT Group, Inc.,

      

5.000%, due 08/15/22

      1,825,000        1,916,250  

Citigroup, Inc.,

      

0.962%, due 05/31/173

    EUR     1,900,000        2,568,414  

Series D,

      

5.350%, due 05/15/233,4

    $ 1,170,000        1,096,875  

5.500%, due 09/13/25

      1,000,000        1,077,921  

Coleman Cable, Inc.,

      

9.000%, due 02/15/18

      15,000        15,712  

Comcast Corp.,

      

6.950%, due 08/15/37

      100,000        129,947  

Denbury Resources, Inc.,

      

8.250%, due 02/15/20

      100,000        109,375  

Diamond Resorts Corp.,

      

12.000%, due 08/15/18

      65,000        71,500  

DirecTV Holdings LLC,

      

6.000%, due 08/15/40

      160,000        166,141  

DISH DBS Corp.,

      

7.875%, due 09/01/19

      200,000        235,000  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Corporate bonds — (Continued)

  

El Paso LLC,

      

7.000%, due 06/15/17

    $ 1,500,000      $ 1,696,036  

7.250%, due 06/01/18

      1,000,000        1,141,455  

Energy Transfer Partners LP,

      

7.500%, due 07/01/38

      1,000,000        1,222,052  

ExamWorks Group, Inc.,

      

9.000%, due 07/15/19

      80,000        88,000  

Felcor Lodging LP,

      

6.750%, due 06/01/19

      25,000        26,875  

Fidelity National Financial, Inc.,

      

5.500%, due 09/01/22

      340,000        361,056  

Ford Motor Credit Co. LLC,

      

8.125%, due 01/15/20

      1,000,000        1,266,652  

Frontier Communications Corp.,

      

8.500%, due 04/15/20

      100,000        115,500  

9.000%, due 08/15/31

      60,000        62,700  

General Electric Capital Corp.,

      

Series C,

      

5.250%, due 06/15/233,4

      850,000        836,187  

General Motors Financial Co., Inc.,

      

4.750%, due 08/15/17

      1,740,000        1,881,810  

Glencore Funding LLC,

      

2.500%, due 01/15/191

      1,190,000        1,170,946  

HCA, Inc.,

      

5.875%, due 03/15/22

      25,000        27,312  

Hiland Partners LP,

      

7.250%, due 10/01/201

      200,000        216,000  

International Lease Finance Corp.,

      

7.125%, due 09/01/181

      75,000        87,187  

Key Energy Services, Inc.,

      

6.750%, due 03/01/21

      75,000        78,562  

Kinder Morgan Energy Partners LP,

      

6.500%, due 09/01/39

      85,000        95,737  

Level 3 Financing, Inc.,

      

8.625%, due 07/15/20

      25,000        28,094  

Liberty Mutual Group, Inc.,

      

10.750%, due 06/15/581,3

      35,000        53,025  

Linn Energy LLC,

      

8.625%, due 04/15/20

      100,000        109,000  

McClatchy Co.,

      

9.000%, due 12/15/22

      25,000        28,594  

MedAssets, Inc.,

      

8.000%, due 11/15/18

      50,000        53,813  

Mercer International, Inc.,

      

9.500%, due 12/01/17

      25,000        27,250  

MetLife, Inc.,

      

6.400%, due 12/15/36

      900,000        938,700  

Niska Gas Storage US LLC,

      

8.875%, due 03/15/18

      40,000        41,800  

NRG Energy, Inc.,

      

8.250%, due 09/01/20

      125,000        138,750  

Owens Corning,

      

6.500%, due 12/01/16

      36,000        40,035  

Petco Animal Supplies, Inc.,

      

9.250%, due 12/01/181

      45,000        48,375  

Plains Exploration & Production Co.,

      

6.875%, due 02/15/23

      400,000        446,000  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Corporate bonds — (Concluded)

  

Prudential Financial, Inc.,

      

5.200%, due 03/15/443

    $ 520,000      $ 514,800  

Regions Bank,

      

7.500%, due 05/15/18

      500,000        595,330  

Reynolds American, Inc.,

      

6.150%, due 09/15/43

      200,000        225,666  

Royal Caribbean Cruises Ltd.,

      

7.250%, due 06/15/16

      225,000        252,563  

7.500%, due 10/15/27

      125,000        137,500  

Sabine Pass Liquefaction LLC,

      

6.250%, due 03/15/221

      280,000        289,800  

Seagate HDD Cayman,

      

3.750%, due 11/15/181

      1,450,000        1,497,125  

Sprint Communications, Inc.,

      

9.000%, due 11/15/181

      25,000        30,625  

9.125%, due 03/01/17

      25,000        29,563  

SquareTwo Financial Corp.,

      

11.625%, due 04/01/17

      200,000        203,000  

Suburban Propane Partners LP,

      

7.500%, due 10/01/18

      84,000        89,460  

Time Warner Cable, Inc.,

      

6.550%, due 05/01/37

      145,000        168,007  

Valero Energy Corp.,

      

6.625%, due 06/15/37

      160,000        190,642  

7.500%, due 04/15/32

      750,000        947,005  

Wells Fargo Capital X,

      

5.950%, due 12/15/36

      600,000        601,500  

WESCO Distribution, Inc.,

      

5.375%, due 12/15/211

      550,000        559,625  

XL Group PLC,

      

Series E,

      

6.500%, due 04/15/173,4

      1,040,000        1,025,700  
     

 

 

  
        34,339,092  
     

 

 

  

Venezuela — 0.42%

      

Petroleos de Venezuela SA,

      

8.500%, due 11/02/171

      1,000,000        802,500  
     

 

 

  

Total corporate bonds
(cost $76,827,698)

         77,645,249  
     

 

 

  

Asset-backed securities — 1.30%

      

Cayman Islands — 0.68%

      

CIFC Funding Ltd.,

      

Series 2014-1A, Class C,

      

2.958%, due 04/18/251,3,5

      525,000        518,228  

Fortress Credit BSL II Ltd.,

      

Series 2013-2A, Class C,

      

3.115%, due 10/19/251,3

      800,000        789,999  
     

 

 

  
        1,308,227  
     

 

 

  

United States — 0.62%

  

Capital Auto Receivables Asset Trust,

      

Series 2013-3, Class C,

      

2.790%, due 10/22/18

      650,000        658,862  

Series 2014-1, Class D,

      

3.390%, due 07/22/19

      525,000        528,745  
     

 

 

  
        1,187,607  
     

 

 

  

Total asset-backed securities
(cost $2,476,019)

         2,495,834  
     

 

 

  

 

 

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Collateralized debt obligations — 4.92%

  

United Kingdom — 1.10%

  

Boyne Valley CLO BV,

      

Series 1X, Class F,

      

2.851%, due 02/12/222,3

    EUR     1,700,000      $ 727,418  

Cadogan Square CLO BV,

      

Series 2X, Class M,

      

6.390%, due 08/12/222,3

      2,000,000        1,380,300  
     

 

 

  
        2,107,718  
     

 

 

  

United States — 3.82%

      

Apidos XIV CLO,

      

Series 2013-14A, Class C1,

      

3.089%, due 04/15/251,3

    $ 700,000        687,750  

Ares XXVII CLO Ltd.,

      

Series 2013-2A, Class C,

      

2.985%, due 07/28/251,3

      500,000        491,250  

BlueMountain CLO Ltd.,

      

Series 2013-1A, Class B,

      

2.886%, due 05/15/251,3

      1,100,000        1,079,760  

Series 2013-4A, Class C,

      

2.889%, due 04/15/251,3

      1,150,000        1,119,640  

Denali Capital CLO X,

      

Series 2013-1A, Class A3L,

      

3.139%, due 04/28/251,3

      900,000        877,500  

Galaxy CLO Ltd.,

      

Series 2013-16A, Class C,

      

2.838%, due 11/16/251,3

      500,000        487,500  

Series 2013-15A, Class C,

      

2.839%, due 04/15/251,3

      700,000        682,500  

KKR Financial CLO Trust,

      

Series 2013-1A, Class B,

      

2.839%, due 07/15/251,3

      700,000        664,650  

Marathon CLO Ltd.,

      

Series 2013-5A, Class A2A,

      

2.584%, due 02/21/251,3

      1,000,000        992,338  

Octagon Investment Partners XVIII CLO Ltd.,

      

Series 2013-1A, Class B,

      

2.987%, due 12/16/241,3

      250,000        244,744  
     

 

 

  
        7,327,632  
     

 

 

  

Total collateralized debt obligations
(cost $8,874,190)

         9,435,350  
     

 

 

  

Commercial mortgage-backed securities — 6.62%

      

United States — 6.62%

      

Americold 2010 LLC Trust,

      

Series 2010-ARTA, Class C,

      

6.811%, due 01/14/291

      1,225,000        1,400,794  

BAMLL Commercial Mortgage Securities Trust,

      

Series 2013-DSNY, Class E,

      

2.755%, due 09/15/261,3

      600,000        601,693  

Boca Hotel Portfolio Trust,

      

Series 2013-BOCA, Class D,

      

3.205%, due 08/15/261,3

      500,000        500,295  

COBALT Commercial Mortgage Trust,

      

Series 2007-C3, Class AM,

      

5.770%, due 05/15/463

      500,000        547,146  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Commercial mortgage-backed securities — (Concluded)

      

Commercial Mortgage Loan Trust,

      

Series 2008-LS1, Class A4B,

      

6.009%, due 12/10/493

    $     400,000      $     446,028  

Commercial Mortgage Pass Through Certificates,

      

Series 2013-FL3, Class MMHP,

      

3.600%, due 10/13/281,3

      900,000        909,872  

Extended Stay America Trust,

      

Series 2013-ESH7, Class B7,

      

3.604%, due 12/05/311

      1,000,000        1,007,156  

FREMF Mortgage Trust,

      

Series 2013-KF02, Class B,

      

3.158%, due 12/25/151,3

      869,074        879,219  

GS Mortgage Securities Corp. II,

      

Series 2013-KYO, Class D,

      

2.757%, due 11/08/291,3

      750,000        750,026  

GS Mortgage Securities Corp. Trust,

      

Series 2012-SHOP, Class B,

      

3.311%, due 06/05/311

      600,000        611,230  

Hilton USA Trust,

      

Series 2013-HLT, Class DFX,

      

4.407%, due 11/05/301

      1,000,000        1,023,456  

JP Morgan Chase Commercial Mortgage Securities Trust,

      

Series 2013-JWRZ, Class D,

      

3.144%, due 04/15/301,3

      750,000        749,672  

Madison Avenue Trust,

      

Series 2013-650M, Class D,

      

4.034%, due 10/12/321,3

      350,000        346,367  

Morgan Stanley Bank of America Merrill Lynch Trust,

      

Series 2013-C7, Class B,

      

3.769%, due 02/15/46

      350,000        336,529  

Morgan Stanley Re-REMIC Trust,

      

Series 2009-GG10, Class A4B,

      

5.806%, due 08/12/451,3

      650,000        716,259  

NLY Commercial Mortgage Trust,

      

Series 2014-FL1, Class B,

      

1.909%, due 11/15/301,3

      400,000        401,019  

Wachovia Bank Commercial Mortgage Trust,

      

Series 2007-C33, Class A4,

      

5.934%, due 02/15/513

      400,000        441,365  

Wells Fargo Commercial Mortgage Trust,

      

Series 2013-120B, Class C,

      

2.710%, due 03/18/281,3

      1,100,000        1,021,129  
     

 

 

  

Total commercial mortgage-backed securities
(cost $12,655,657)

         12,689,255  
     

 

 

  

Mortgage & agency debt securities — 10.59%

      

United States — 10.59%

      

Federal Home Loan Mortgage Corp. REMIC, IO,6

      

3.000%, due 05/15/27

      5,184,542        590,535  

3.500%, due 10/15/42

      2,880,865        673,762  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Mortgage & agency debt securities — (Concluded)

      

Federal National Mortgage Association REMIC, IO,6

      

Series 2013-15, Class IO,

      

2.500%, due 03/25/28

    $     6,214,607      $     648,018  

Series 2013-64, Class LI,

      

3.000%, due 06/25/33

      5,324,955        895,414  

Series 2011-91, Class EI,

      

3.500%, due 08/25/26

      4,671,176        534,453  

Series 2012-146, Class IO,

      

3.500%, due 01/25/43

      1,767,686        413,770  

Series 2012-146, Class LI,

      

4.500%, due 10/25/41

      1,878,315        351,757  

Government National Mortgage Association Pools, G2 MA0022,

      

3.500%, due 04/20/42

      8,348,428        8,611,610  

Government National Mortgage Association, IO,

      

Series 2013-22, Class IO,

      

3.000%, due 02/20/43

      6,397,622        1,310,620  

Series 2012-26, Class GI,

      

3.500%, due 02/20/27

      4,048,647        490,291  

Series 2012-16, Class AI,

      

3.500%, due 10/20/38

      3,883,344        570,674  

Series 2013-53, Class OI,

      

3.500%, due 04/20/43

      4,615,110        893,430  

JP Morgan Alternative Loan Trust,

      

Series 2006-A5, Class 2A6,

      

3.625%, due 10/25/363

      5,606,172        3,081,724  

Structured Adjustable Rate Mortgage Loan Trust,

      

Series 2006-8, Class 4A3,

      

5.227%, due 09/25/363

      1,456,512        1,241,509  
     

 

 

  

Total mortgage & agency debt securities
(cost $21,505,013)

         20,307,567  
     

 

 

  

Municipal bonds — 2.62%

      

State of California, General Obligation Bonds,

      

7.300%, due 10/01/39

      300,000        403,809  

7.550%, due 04/01/39

      1,625,000        2,263,690  

State of Illinois, General Obligation Bonds,

      

5.877%, due 03/01/19

      2,100,000        2,352,168  
     

 

 

  

Total municipal bonds
(cost $4,806,823)

         5,019,667  
     

 

 

  

US government obligations — 3.42%

      

US Treasury Bonds,

      

3.625%, due 08/15/437

      1,000,000        1,006,562  

US Treasury Inflation Indexed Notes (TIPS),

      

0.125%, due 01/15/22

      1,544,505        1,531,111  

US Treasury Notes,

      

1.625%, due 11/15/227

      4,315,000        4,019,690  
     

 

 

  

Total US government obligations
(cost $6,877,385)

         6,557,363  
     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Non-US government obligations — 23.95%

      

Argentina — 0.63%

      

Republic of Argentina,

      

0.000%, due 12/15/358

    $ 3,200,825      $ 256,066  

0.000%, due 12/15/358

      11,700,000        947,700  
     

 

 

  
        1,203,766  
     

 

 

  

Australia — 1.27%

      

Queensland Treasury Corp.,

      

6.000%, due 02/21/18

    AUD     2,500,000        2,441,412  
     

 

 

  

Austria — 0.72%

      

Republic of Austria,

      

3.400%, due 11/22/221,2

    EUR 885,000        1,381,346  
     

 

 

  

Belarus — 1.22%

      

Republic of Belarus,

      

8.750%, due 08/03/152

    $ 2,325,000        2,342,437  
     

 

 

  

Belgium — 1.52%

      

Kingdom of Belgium,

      

4.000%, due 03/28/22

    EUR 1,650,000        2,644,855  

4.000%, due 03/28/322

      165,000        261,169  
     

 

 

  
        2,906,024  
     

 

 

  

Brazil — 2.44%

      

Banco Nacional de Desenvolvimento Economico e Social,

      

3.375%, due 09/26/161

    $ 550,000        560,312  

Federative Republic of Brazil,

      

6.000%, due 08/15/509

    BRL 4,000,000        3,702,863  

Letras do Tesouro Nacional,

      

6.235%, due 04/01/1410

      990,000        418,819  
     

 

 

  
        4,681,994  
     

 

 

  

China — 0.28%

      

China Government Bond,

      

2.480%, due 12/01/20

    CNY 3,500,000        528,246  
     

 

 

  

Costa Rica — 0.41%

      

Banco Nacional de Costa Rica,

      

4.875%, due 11/01/181

    $ 800,000        790,000  
     

 

 

  

France — 1.68%

      

Government of France,

      

1.000%, due 05/25/18

    EUR 730,000        1,017,282  

3.500%, due 04/25/26

      720,000        1,102,400  

3.750%, due 10/25/19

      700,000        1,104,997  
     

 

 

  
        3,224,679  
     

 

 

  

Gabon — 0.16%

      

Gabonese Republic,

      

6.375%, due 12/12/241

    $ 300,000        306,000  
     

 

 

  

Germany — 2.54%

      

Bundesrepublik Deutschland,

      

2.250%, due 09/04/20

    EUR 1,930,000        2,884,476  

4.750%, due 07/04/28

      320,000        585,866  

Kreditanstalt fuer Wiederaufbau,

      

5.050%, due 02/04/25

    CAD 1,350,000        1,398,194  
     

 

 

  
        4,868,536  
     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Non-US government obligations — (Continued)

      

Ghana — 0.38%

      

Republic of Ghana,

      

7.875%, due 08/07/231

    $ 232,364      $ 214,937  

8.500%, due 10/04/172

      496,000        510,260  
     

 

 

  
        725,197  
     

 

 

  

Greece — 0.56%

      

Hellenic Republic,

      

2.000%, due 02/24/242,11

    EUR 230,000        231,937  

2.000%, due 02/24/262,11

      870,000        834,398  
     

 

 

  
        1,066,335  
     

 

 

  

Hungary — 0.12%

      

Government of Hungary,

      

7.625%, due 03/29/41

    $ 200,000        226,000  
     

 

 

  

Ireland — 0.82%

      

Government of Ireland,

      

3.900%, due 03/20/23

    EUR 1,050,000        1,568,339  
     

 

 

  

Italy — 2.58%

      

Buoni Poliennali Del Tesoro,

      

2.100%, due 09/15/172,9

      771,939        1,108,021  

2.100%, due 09/15/212,9

      1,022,575        1,425,547  

3.750%, due 08/01/15

      1,150,000        1,654,305  

4.250%, due 09/01/19

      500,000        759,787  
     

 

 

  
        4,947,660  
     

 

 

  

Mexico — 0.80%

      

Mexican Udibonos,

      

4.000%, due 11/15/409

    MXN     19,600,982        1,542,605  
     

 

 

  

Netherlands — 0.42%

      

Government of the Netherlands,

      

1.250%, due 01/15/181,2

    EUR 565,000        800,138  
     

 

 

  

Nigeria — 0.01%

      

Nigeria Treasury Bills,

      

11.788%, due 04/10/1410

    NGN 4,500,000        26,927  
     

 

 

  

Poland — 0.50%

      

Republic of Poland,

      

5.750%, due 04/25/14

    PLN 2,900,000        965,959  
     

 

 

  

Russia — 0.67%

      

Russian Federation,

      

7.000%, due 01/25/23

    RUB 49,900,000        1,288,952  
     

 

 

  

Spain — 1.75%

      

Kingdom of Spain,

      

4.200%, due 01/31/37

    EUR 840,000        1,146,165  

4.400%, due 10/31/231,2

      720,000        1,071,513  

5.850%, due 01/31/22

      695,000        1,142,229  
     

 

 

  
        3,359,907  
     

 

 

  

Sweden — 0.88%

      

Kommuninvest I Sverige AB,

      

4.000%, due 08/12/17

    SEK 10,000,000        1,679,287  
     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

 

    Face
amount		      Value  

Non-US government obligations — (Concluded)

  

United Kingdom — 0.37%

      

United Kingdom Gilt,

      

1.250%, due 07/22/182

    GBP 425,000      $ 700,012  
     

 

 

  

Venezuela — 1.22%

      

Republic of Venezuela,

      

8.250%, due 10/13/242

    $ 3,500,000        2,336,250  
     

 

 

  

Total Non-US government obligations
(cost $47,101,387)

         45,908,008  
     

 

 

  

Structured notes — 2.55%

      

Ghana — 0.54%

      

Standard Chartered Bank,

      

23.000%, due 08/21/171

(linked to Ghana Government Bonds,
23.000%, due 08/21/17)

      2,800,000        1,032,891  
     

 

 

  

India — 2.01%

      

Standard Chartered Bank,

      

8.130%, due 09/23/221

(linked to Indian Government Bonds,
8.130%, due 09/23/22)

      4,828,773        3,864,284  
     

 

 

  

Total structured notes
(cost $6,588,033)

         4,897,175  
     

 

 

  

Supranational bonds — 1.46%

      

EUROFIMA,

      

6.250%, due 12/28/182

    AUD     1,405,000        1,378,953  

European Investment Bank,

      

6.500%, due 08/07/19

      1,425,000        1,417,568  
     

 

 

  

Total supranational bonds
(cost $3,262,962)

         2,796,521  
     

 

 

  

Total bonds
(cost $190,975,167)

         187,751,989  
     

 

 

  
     Shares         

Common stock — 0.03%

      

United States — 0.03%

      

WMI Holdings Corp.*
(cost $10,890)

      19,801        54,255  
     

 

 

  

Short-term investment — 1.63%

      

Investment company — 1.63%

      

UBS Cash Management Prime Relationship Fund12
(cost $3,116,624)

      3,116,624         3,116,624  
     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

     Number of
contracts		      Value  

Options purchased — 0.16%

      

Put options — 0.14%

      

3 Year Euro-Dollar Midcurve, strike @ USD 99.6250, expires April 2014

    $ 854      $ 5,338  

3 Year Euro-Dollar Midcurve, strike @ USD 97.7500, expires June 2016

      155        115,281  

30 Year US Treasury Bonds, strike @ USD 130.0000, expires May 2014

      34        27,094  

90 Day Euro-Dollar Time Deposit, strike @ USD 99.2500, expires March 2015

      550        72,187  
     Face amount
covered by
contracts		         

Foreign Exchange Option, Buy EUR/BRL, strike @ BRL 2.8000, expires June 2014, counterparty: BB

    EUR 950,000        111  

Foreign Exchange Option, Buy USD/BRL, strike @ BRL 2.3150, expires March 2014, counterparty: DB

    $ 670,000        3,310  

Foreign Exchange Option, Buy USD/BRL, strike @ BRL 2.3500, expires March 2014, counterparty: GSI

      820,000        10,057  

Foreign Exchange Option, Buy USD/BRL, strike @ BRL 2.3600, expires March 2014, counterparty: DB

      680,000        10,384  

Foreign Exchange Option, Buy USD/BRL, strike @ BRL 1.9000, expires April 2014, counterparty: GSI

      1,830,000        0  

Foreign Exchange Option, Buy USD/BRL, strike @ BRL 2.3750, expires April 2014, counterparty: CSI

      470,000        9,483  

Foreign Exchange Option, Buy USD/BRL, strike @ BRL 2.0300, expires June 2014, counterparty: MLI

      750,000        24  

Foreign Exchange Option, Buy USD/BRL, strike @ BRL 2.0300, expires June 2014, counterparty: GSI

      500,000        18  

Foreign Exchange Option, Buy USD/CLP, strike @ CLP 550.0000, expires March 2014, counterparty: CSI

      670,000        2,061  

Foreign Exchange Option, Buy USD/CLP, strike @ CLP 552.0000, expires March 2014, counterparty: DB

      270,000        1,082  

Foreign Exchange Option, Buy USD/CLP, strike @ CLP 548.0000, expires April 2014, counterparty: MLI

      680,000        4,012  

Foreign Exchange Option, Buy USD/RUB, strike @ RUB 35.7000, expires March 2014, counterparty: CSI

      675,000        4,178  

Foreign Exchange Option, Buy USD/TRY, strike @ TRY 2.2000, expires March 2014, counterparty: DB

      400,000        3,192  

Foreign Exchange Option, Buy USD/TRY, strike @ TRY 2.1900, expires March 2014, counterparty: GSI

      680,000        5,277  

Foreign Exchange Option, Buy USD/TRY, strike @ TRY 1.9200, expires June 2014, counterparty: BB

      1,360,000        56  
     

 

 

  
        273,145  
     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

     Notional
Amount		      Value  

Options purchased on interest rate swaps — 0.02%5

      

Expiring 11/02/15. If option exercised the Fund pays semi-annually 6.000% and receives quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 11/04/25. European style. Counterparty: DB

    $ 14,000,000      $ 28,418  
     

 

 

  

Total options purchased
(cost $1,225,756)

         301,563  
     

 

 

  

Total investments — 99.76%
(cost $195,328,437)13

         191,224,431  

Cash and other assets, less liabilities: 0.24%

         455,556  
     

 

 

  

Net assets — 100.00%

       $ 191,679,987  
     

 

 

  

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized depreciation consisted of:

 

Gross unrealized appreciation

    $  6,951,959  

Gross unrealized depreciation

      (11,055,965 ) 
  

 

 

  

Net unrealized depreciation of investments

    $ (4,104,006 ) 
  

 

 

  

For a listing of defined portfolio acronyms, counterparty abbreviations and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to the end of this report.

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Forward foreign currency contracts

 

Counterparty

    Contracts to deliver      In exchange for      Maturity
date		      Unrealized
appreciation/
(depreciation)		  

BB

    BRL      1,105,000      USD      450,671        03/18/14       $ (18,698 ) 

BB

    MXN      20,867,000      USD      1,610,667        03/18/14         38,830  

BB

    USD      851,443      BRL      1,943,000        06/10/14         (44,528 ) 

BB

    USD      41,322      BRL      100,000        06/10/14         207  

BB

    USD      15,957      HUF      3,510,000        03/18/14         (339 ) 

BB

    USD      91,340      KRW      96,486,600        03/18/14         (1,029 ) 

CSI

    BRL      10,762,275      USD      4,531,293        03/18/14         (40,177 ) 

CSI

    CLP      319,095,000      USD      576,161        03/18/14         6,263  

CSI

    INR      17,770,000      USD      283,424        03/18/14         (2,273 ) 

CSI

    USD      722,140      BRL      1,714,000        03/18/14         5,912  

CSI

    USD      103,419      BRL      245,000        04/04/14         146  

CSI

    USD      172,295      CLP      96,993,000        04/04/14         576  

DB

    IDR      4,476,440,000      USD      363,938        03/18/14         (20,718 ) 

DB

    MXN      1,976,000      USD      148,679        03/06/14         (308 ) 

DB

    TRY      388,000      USD      176,372        03/06/14         934  

DB

    TRY      835,870      USD      395,209        03/18/14         18,669  

DB

    USD      208,055      BRL      498,000        03/06/14         4,212  

DB

    USD      103,245      BRL      245,000        04/04/14         321  

DB

    USD      594,993      CLP      319,095,000        03/18/14         (25,096 ) 

DB

    USD      34,458      CLP      19,481,000        04/04/14         263  

DB

    USD      355,325      MXN      4,719,000        03/06/14         480  

DB

    USD      40,277      TRY      89,000        03/06/14         (35 ) 

DB

    USD      135,073      TRY      299,000        03/06/14         123  

DB

    USD      387,366      TRY      800,000        03/18/14         (26,985 ) 

GSI

    BRL      2,043,000      USD      847,191        06/10/14         (1,254 ) 

GSI

    RUB      53,230,000      USD      1,500,832        03/18/14         26,343  

GSI

    USD      373,128      IDR      4,539,100,000        03/18/14         16,912  

GSI

    USD      1,075,973      INR      66,890,000        03/18/14         (548 ) 

GSI

    USD      18,383      TWD      540,000        03/18/14         (553 ) 

JPMCB

    AUD      5,335,000      USD      4,729,088        04/22/14         (15,452 ) 

JPMCB

    EUR      550,000      USD      747,646        04/22/14         (11,507 ) 

JPMCB

    NOK      2,320,000      USD      376,930        04/22/14         (8,877 ) 

JPMCB

    SEK      13,290,000      USD      2,047,849        04/22/14         (23,219 ) 

JPMCB

    USD      3,964,984      CAD      4,345,000        04/22/14         (45,768 ) 

JPMCB

    USD      1,103,724      DKK      6,050,000        04/22/14         15,775  

JPMCB

    USD      1,183,185      EUR      870,000        04/22/14         17,657  

JPMCB

    USD      3,415,346      GBP      2,090,000        04/22/14         83,136  

RBS

    USD      14,104,135      JPY      1,473,600,000        04/22/14         379,414  

 

  

Net unrealized appreciation on forward foreign currency contracts

  

       $ 328,809  
                 

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Futures contracts

 

      Expiration
date		     

Cost/

(proceeds)

     Value     Unrealized
appreciation/
(depreciation)		  

US Treasury futures buy contracts:

          

US Long Bond, 48 contracts (USD)

      June 2014       $     6,386,917     $     6,387,000     $ 83  

US Ultra Bond Futures, 8 contracts (USD)

      June 2014         1,147,885       1,148,750       865  

5 Year US Treasury Notes, 21 contracts (USD)

      June 2014         2,515,367       2,517,047       1,680  

US Treasury futures sell contracts:

          

US Long Bond, 60 contracts (USD)

      June 2014         (7,986,020 )      (7,983,750 )      2,270  

US Ultra Bond Futures, 8 contracts (USD)

      June 2014         (1,140,683 )      (1,148,750 )      (8,067 ) 

10 Year US Treasury Notes, 108 contracts (USD)

      June 2014         (13,431,350 )      (13,449,375 )      (18,025 ) 

Interest rate futures sell contracts:

          

90 Day Euro-Dollar Time Deposit, 500 contracts (USD)

      December 2015         (123,760,750 )      (123,812,500 )      (51,750 ) 
         

 

 

  

Net unrealized depreciation on futures contracts

  

   $ (72,944 ) 
         

 

 

  

Options written

 

Call option

    Expiration
date		    Premiums
received		      Value  

3 Year Euro-Dollar Midcurve, 155 contracts, strike @ USD 98.7500

    June 2016    $ 125,995      $ (157,906 ) 

Put options

         

3 Year Euro-Dollar Midcurve, 854 contracts, strike @ USD 99.5000

    April 2014      7,686        (5,338 ) 

3 Year Euro-Dollar Midcurve, 155 contracts, strike @ USD 96.7500

    June 2016      124,307        (57,156 ) 

30 Year US Treasury Bonds, 34 contracts, strike @ USD 135.0000

    May 2014      36,066        (38,781 ) 

90 Day Euro-Dollar Time Deposit, 550 contracts, strike @ USD 98.2500

    March 2015      142,450        (17,188 ) 

Foreign Exchange Option, Sell EUR/BRL, EUR 950,000 face amount covered by contracts, strike @ BRL 2.6000, counterparty: BB

    June 2014      8,086        (1 ) 

Foreign Exchange Option, Sell USD/BRL, USD 670,000 face amount covered by contracts, strike @ BRL 2.2950, counterparty: DB

    March 2014      1,273        (1,273 ) 

Foreign Exchange Option, Sell USD/BRL, USD 820,000 face amount covered by contracts, strike @ BRL 2.3400, counterparty: GSI

    March 2014      3,083        (7,969 ) 

Foreign Exchange Option, Sell USD/BRL, USD 680,000 face amount covered by contracts, strike @ BRL 2.3400, counterparty: DB

    March 2014      2,972        (6,858 ) 

Foreign Exchange Option, Sell USD/BRL, USD 1,830,000 face amount covered by contracts, strike @ BRL 1.8000, counterparty: GSI

    April 2014      4,850        0  

Foreign Exchange Option, Sell USD/BRL, USD 1,500,000 face amount covered by contracts, strike @ BRL 1.9600, counterparty: MLI

    June 2014      6,757        (5 ) 

Foreign Exchange Option, Sell USD/BRL, USD 1,000,000 face amount covered by contracts, strike @ BRL 1.9600, counterparty: GSI

    June 2014      4,952        (4 ) 

Foreign Exchange Option, Sell USD/CLP, USD 270,000 face amount covered by contracts, strike @ CLP 555.0000, counterparty: CSI

    March 2014      2,896        (1,588 ) 

Foreign Exchange Option, Sell USD/CLP, USD 340,000 face amount covered by contracts, strike @ CLP 555.0000, counterparty: MLI

    April 2014      3,902        (3,514 ) 

Foreign Exchange Option, Sell USD/RUB, USD 337,500 face amount covered by contracts, strike @ RUB 36.0000, counterparty: CSI

    March 2014      3,017        (3,462 ) 

Foreign Exchange Option, Sell USD/TRY, USD 680,000 face amount covered by contracts, strike @ TRY 1.9800, counterparty: BB

    June 2014      21,488        (143 ) 

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

     Expiration
date		      Premiums
received		      Value  

Options written — (Concluded)

         

Options written on interest rate swaps5

         

If option exercised the Fund receives quarterly floating 3 month EURIBOR and pays annually 1.825%. Underlying interest rate swap terminating 12/10/15. European style. counterparty: BB, Notional Amount EUR 48,000,000

      December 2014       $ 270,235      $ (975,563 ) 

If option exercised the Fund receives semi-annually 7.250% and pays quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 11/04/25. European style. counterparty: DB, Notional Amount USD 14,000,000

      November 2015         257,600        (7,842 ) 

If option exercised the Fund receives semi-annually 8.760% and pays quarterly floating 3 month USD LIBOR. Underlying interest rate swap terminating 11/04/25. European style. counterparty: DB, Notional Amount USD 14,000,000

      November 2015         166,600        (2,004 ) 

Options written on credit default swaps on credit indices5

         

If option exercised payment from the counterparty will be received upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the CDX.NA.HY Series 21 Index and Fund pays quarterly fixed rate of 5.000%. Underlying credit default swap terminating 12/20/18. European style. counterparty: MLI, Notional Amount USD 30,000,000

      March 2014         183,000        (103,526 ) 

If option exercised payment from the counterparty will be received upon the occurrence of a failure to pay, obligation acceleration, repudiation or restructuring of the referenced obligation specified in the CDX.NA.HY Series 21 Index and Fund pays quarterly fixed rate of 5.000%. Underlying credit default swap terminating 12/20/18. European style. counterparty: MLI, Notional Amount USD 30,000,000

      June 2014         375,000        (304,562 ) 
     

 

 

  

Total options written

       $   1,752,215      $   (1,694,683 ) 
     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Written options activity for the period ended February 28, 2014 was as follows:

 

     Number of
contracts		     Premiums
received		  

Options outstanding at November 30, 2013

      2,230      $ 776,064   

Options written

      4,928        482,349   

Options terminated in closing purchase transactions

      (5,410 )      (821,909 ) 

Options expired prior to exercise

      —        —   
  

 

 

    

 

 

  

Options outstanding at February 28, 2014

      1,748      $ 436,504   
  

 

 

    

 

 

  

Swaptions and foreign exchange written options activity for the period ended February 28, 2014 was as follows:

 

     Premiums
received		  

Swaptions & foreign exchange options outstanding at November 30, 2013

    $ 1,694,361   

Swaptions & foreign exchange options written

      594,164   

Swaptions & foreign exchange options terminated in closing purchase transactions

      (972,814 ) 

Swaptions & foreign exchange options expired prior to exercise

      —   
  

 

 

  

Swaptions & foreign exchange options outstanding at February 28, 2014

    $   1,315,711   
  

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Currency swap agreements5

 

Counterparty

   Pay
contracts		     Receive
contracts		     Termination
date		     Pay
rate14		  

Receive
rate14

   Upfront
payments		     Value     Unrealized
appreciation/
(depreciation)		  

CITI

   AUD     22,328,244      USD     19,760,496        12/24/14      3 month
BBSW		   3 month USD LIBOR   $ —      $ (315,524 )    $ (315,524 ) 

BB

   INR     249,400,000      USD     4,000,000        12/05/16      7.500%   6 month USD LIBOR     —        (108,678 )      (108,678 ) 

BB

   USD     19,775,009      AUD     22,328,244        12/24/22      3 month
USD LIBOR		   3 month BBSW     —        415,171        415,171   
               

 

 

    

 

 

    

 

 

  
                $ —      $ (9,031 )    $ (9,031 ) 
               

 

 

    

 

 

    

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Interest rate swap agreements

 

Counterparty

   Notional
amount		     Termination
date		  

Payments made by

the Fund14

  

Payments received

by the Fund14

   Upfront
payments
(made)/
received		     Value     Unrealized
appreciation/
(depreciation)		  

CITI

   KRW     4,800,000,000      08/26/16   3.410%   3 month CD KSDA   $ —      $ (66,052 )    $ (66,052 ) 

CITI

   USD     42,400,000      11/24/18   1 month LIBOR (USD BBA)   3 month LIBOR (USD BBA)     —        135,431        135,431   

CSI

   CAD     32,620,000      02/11/17   3 month BA   3.500%     (293,326 )      1,742,847        1,449,521   

CSI

   CAD     9,200,000      02/11/22   4.145   3 month BA     —        (1,014,887 )      (1,014,887 ) 

DB

   EUR     8,200,000      05/04/22   2.130   6 month EURIBOR     467,871        (651,322 )      (183,451 ) 

DB

   EUR     3,650,000      05/04/42   6 month EURIBOR   2.460     —        51,076        51,076   

DB

   ZAR     7,400,000      05/31/23   3 month JIBAR   7.480     —        (47,047 )      (47,047 ) 

GSI

   TWD     140,000,000      08/26/16   1.280   3 month TWCPBA     —        (28,505 )      (28,505 ) 

JPMCB

   CAD     32,620,000      02/11/17   3.500   3 month BA     —        (1,742,847 )      (1,742,847 ) 

JPMCB

   EUR     8,200,000      05/04/22   6 month EURIBOR   2.130     —        651,322        651,322   

JPMCB

   EUR     3,650,000      05/04/42   2.460   6 month EURIBOR     —        (51,075 )      (51,075 ) 

JPMCB

   USD     42,300,000      11/24/18   1 month LIBOR (USD BBA)   3 month LIBOR (USD BBA)     —        125,134        125,134   

JPMCB

   USD     105,000,000      07/03/42   1 month LIBOR (USD BBA)   3 month LIBOR (USD BBA)     —        333,835        333,835   

MLI

   CAD     22,140,000      04/09/17   3 month BA   1.978     —        329,142        329,142   

MLI

   CAD     7,480,000      02/04/21   3.725   3 month BA     194,693        (623,821 )      (429,128 ) 

MLI

   CAD     7,410,000      02/04/31   3 month BA   3.475     —        143,922        143,922   

MLI

   CAD     2,620,000      02/04/41   4.208   3 month BA     —        (352,566 )      (352,566 ) 

MLI

   ZAR     12,000,000      06/04/18   3 month JIBAR   6.400     —        (56,377 )      (56,377 ) 

MSCI

   CAD     21,160,000      04/08/17   3.600   3 month BA     —        (1,378,460 )      (1,378,460 ) 
           

 

 

    

 

 

    

 

 

  
            $ 369,238      $ (2,500,250 )    $ (2,131,012 ) 
           

 

 

    

 

 

    

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Credit default swaps on corporate and sovereign issues — buy protection15

 

Counterparty

   

Referenced obligation16

    Notional amount      Termination
date		    Payments
made by the
Fund14		   Upfront
payments
(made)/
received		     Value     Unrealized
depreciation		  

CITI

   

Commerzbank AG Bond,

4.000%, due 09/16/20

    EUR      1,600,000       06/20/18    1.000%   $ (57,445 )    $ (9,031 )    $ (66,476 ) 

JPMCB

   

Government of Japan Bond,

2.000%, due 03/21/22

    USD      4,000,000       12/20/17    1.000     20,131        (106,942 )      (86,811 ) 

MLI

   

XLIT Ltd. Bond,

6.250%, due 05/15/27

    USD      3,000,000       09/20/17    1.000     (32,170 )      (69,554 )      (101,724 ) 

MLI

   

Nucor Corp. Bond,

5.750%, due 12/01/17

    USD      3,025,000       03/20/18    1.000     40,282        (79,256 )      (38,974 ) 

MLI

   

Allstate Corp. Bond,

6.750%, due 05/15/18

    USD      3,025,000       03/20/18    1.000     58,482        (92,171 )      (33,689 ) 

MSCI

   

Deutsche Bank AG Bond,

5.125%, due 08/31/17

    EUR      1,750,000       06/20/17    1.000     (94,483 )      (37,928 )      (132,411 ) 
                

 

 

    

 

 

    

 

 

  
                 $   (65,203 )    $   (394,882 )    $   (460,085 ) 
                

 

 

    

 

 

    

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Credit default swap on credit indices — sell protection17

 

Counterparty

  

Referenced Index16

   Notional amount     Termination
date		   Payments
received by
the  Fund14		   Upfront
payments
received		     Value     Unrealized
appreciation		     Credit
spread18

CSI

  

CMBX.NA.BBB.

Series 6 Index

   USD     9,550,000      05/11/63   3.000%   $ 386,131      $ (132,231 )    $ 253,900      3.180%

MLI

  

CDX.NA.HY.

Series 15 Index

   USD     4,000,000      12/20/15   5.000     295,000             367,857            662,857      0.496

MSCI

  

CMBX.NA.A.

Series 6 Index

   USD     9,500,000      05/11/63   2.000         121,598        (6,241 )      115,357      2.003
           

 

 

    

 

 

    

 

 

    
            $ 802,729      $ 229,385      $ 1,032,114     
           

 

 

    

 

 

    

 

 

    

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Credit default swaps on corporate and sovereign issues — sell protection17

 

Counterparty

  

Referenced obligation16

   Notional amount     Termination
date		   Payments
received by
the Fund14		   Upfront  payments
(made)/
received		     Value     Unrealized
appreciation		     Credit
spread18

BB

  

Lloyds TSB Bank PLC Bond,

3.375%, due 04/20/15

   EUR     1,600,000      06/20/18   1.000%   $ 62,351      $ 33,134      $ 95,485      0.692%

JPMCB

  

Republic of China Bond,

4.250%, due 10/28/14

   USD     4,000,000      12/20/17   1.000     (16,042 )      58,630        42,588      0.662

MLI

  

JPMorgan Chase & Co. Bond,

4.750%, due 03/01/15

   USD     3,000,000      09/20/17   1.000     45,158              66,324            111,482      0.429

MLI

  

Barrick Gold Corp. Bond,

5.800%, due 11/15/34

   USD     3,025,000      03/20/18   1.000     59,443        (2,262 )      57,181      1.069

MLI

   Hartford Financial Services Group, Inc. Bond,
6.000%, due 01/15/19		   USD     3,025,000      03/20/18   1.000     33,599        58,278        91,877      0.567

CITI

  

State of Illinois Bond,

5.000% due 06/01/29

   USD     3,000,000      12/20/23   1.000     222,252        (177,586 )      44,666      1.909
           

 

 

    

 

 

    

 

 

    
            $   406,761      $ 36,518      $ 443,279     
           

 

 

    

 

 

    

 

 

    

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Total return swap agreement5

 

Counterparty

    Notional amount      Termination
date		   

Payments made by the Fund14

    Payments
received by
the Fund		     Upfront
payments		      Value      Unrealized
appreciation		  

JPMCB

    GBP      6,710,000       06/25/14    3 month USD LIBOR      —  19    $  —       $     253,850       $     253,850   
                

 

 

     

 

 

     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Centrally cleared interest rate swap agreements

 

Notional amount      Termination
date		   

Payments made by the Fund14

    Payments
received by
the Fund14		   Value      Unrealized
appreciation		  
EUR      23,450,000       12/27/16    6 month EURIBOR    0.726%   $ 149,996       $ 149,996   
CAD      9,200,000       02/11/22    3 month BA    2.626     92,181         92,181   
             

 

 

     

 

 

  
              $     242,177       $     242,177   
             

 

 

     

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Centrally cleared credit default swap on credit indices — buy protection15

 

Counterparty

   

Referenced Index16

    Notional amount      Termination
date		    Payments
made by
the Fund14		   Value     Unrealized
depreciation		  

CITI

    CDX.NA.IG. Series 21 Index      50,000,000       12/20/18    1.000%   $   (947,111 )    $   (301,945 ) 
             

 

 

    

 

 

  

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Assets   

Unadjusted quoted

prices in active

markets for

identical investments

(Level 1)

    

Other significant

observable

inputs

(Level 2)

    

Unobservable

inputs

(Level 3)

      Total  

Description:

          

Corporate bonds

    $  —     $ 77,645,249     $  —      $ 77,645,249  

Asset-backed securities

      —       1,187,607       1,308,227        2,495,834  

Collateralized debt obligations

      —       2,356,722       7,078,628        9,435,350  

Commercial mortgage-backed securities

      —       12,689,255       —        12,689,255  

Mortgage & agency debt securities

      —       19,246,602       1,060,965        20,307,567  

Municipal bonds

      —       5,019,667       —        5,019,667  

US government obligations

      —       6,557,363       —        6,557,363  

Non-US government obligations

      —       45,908,008       —        45,908,008  

Structured notes

      —       4,897,175       —        4,897,175  

Supranational bonds

      —       2,796,521       —        2,796,521  

Common stock

      54,255       —       —        54,255  

Short-term investments

      —       3,116,624       —        3,116,624  

Options purchased

      219,900       81,663       —        301,563  

Forward foreign currency contracts

      —       616,173       —        616,173  

Futures contracts

      4,898       —       —        4,898  

Swap agreements

      —       5,008,130       —        5,008,130  
  

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $     279,053     $     187,126,759     $     9,447,820      $     196,853,632  
  

 

 

    

 

 

    

 

 

     

 

 

  
Liabilities    Level 1     Level 2     Level 3      Total  

Description:

          

Forward foreign currency contracts

    $  —      $ (287,364 )    $  —      $ (287,364 ) 

Futures contracts

      (77,842 )     —        —         (77,842 ) 

Swap agreements

      —       (8,097,474 )     —        (8,097,474 )

Options written

      (276,369 )      (1,418,314 )     —        (1,694,683 )
  

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ (354,211 )    $ (9,803,152 )    $  —       $ (10,157,363 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

At February 28, 2014, there were no transfers between Level 1 and Level 2.

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

Level 3 rollforward disclosure

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs for the period:

 

      Asset-backed
securities		     

Collateralized

debt obligations

     Commercial
mortgage-backed
securities		    

Mortgage &
agency

debt
securities

     Total  

Assets

            

Beginning balance

    $ 782,960       $ 7,582,124      $ 1,500,844      $ 1,150,837      $ 11,016,765   

Purchases

      518,228         —        —        —        518,228   

Issuances

      —         —        —        —        —   

Sales

      —         —        —        —        —   

Accrued discounts (premiums)

      —         —        —        (69,017 )      (69,017 ) 

Total realized gain

      —         —        —        —        —   

Change in net unrealized appreciation/depreciation

      7,039         (258,752 )      10,721        (20,855 )      (261,847 ) 

Transfers into Level 3

      —         —        —        —        —   

Transfers out of Level 3

      —         (244,744 )      (1,511,565 )      —        (1,756,309 ) 

Ending balance

    $ 1,308,227       $ 7,078,628      $ —      $ 1,060,965      $ 9,447,820   

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at February 28, 2014 was $(272,483).

Portfolio footnotes

 

1 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 28, 2014, the value of these securities amounted to $41,955,926 or 21.89% of net assets.

2 

Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At February 28, 2014, the value of these securities amounted to $35,100,336 or 18.31% of net assets.

3 

Variable or floating rate security — The interest rate shown is the current rate as of February 28, 2014 and changes periodically.

4 

Perpetual bond security. The maturity date reflects the next call date.

5 

Illiquid investment as of February 28, 2014.

6 

On September 7, 2008, the Federal Housing Finance Agency placed the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association into conservatorship, and the US Treasury guaranteed the debt issued by those organizations.

7 

All or a portion of this security has been designated as collateral for open swap agreements.

8 

Security pays, when required, a floating rate that is determined annually based on the Argentina GDP.

9 

Debt security whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the securities is fixed, while the principal value rises or falls based on changes in an index. Thus, if inflation occurs, the principal and interest payments on the securities are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the securities’ principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the securities generally pay lower interest rates than typical government securities from the issuer’s country. Only if inflation occurs will securities offer a higher real yield than a conventional security of the same maturity.

10 

Rate shown reflects annualized yield at February 28, 2014 on zero coupon bond.

11 

Step bond — Coupon rate increases in increments to maturity. Rate disclosed is as of February 28, 2014. Maturity date disclosed is the ultimate maturity date.

Strategic Global Income Fund, Inc.

Portfolio of investments — February 28, 2014 (unaudited)

 

12 

The table below details the Fund’s investment in a fund advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund.

 

Security description

    Value
11/30/13		      Purchases
during the
three months ended
02/28/14		      Sales
during the
three months ended
02/28/14		      Value
02/28/14		      Net income
earned from
affiliate for the
three months ended
02/28/14		  

UBS Cash

               

Management

               

Prime

               
Relationship Fund    $ 1,047,245       $ 19,376,125       $ 17,306,746       $ 3,116,624       $ 447   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

13 

The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its investments from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices, official market closing prices, current market quotations or valuations from computerized evaluation systems that derive values based on comparable investments. An evaluation investments system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio investments. Investments also maybe valued based on appraisals derived from information concerning the investments or similar investments received from recognized dealers in those holdings. Investments traded in the over-the-counter (“OTC”) market and listed on The NASDAQ Stock Market, Inc. (“NASDAQ”) normally are valued at the NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price on the valuation date available prior to valuation. Investments which are listed on US and foreign stock exchanges normally are valued at the market closing price, the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where investments are traded on more than one exchange, the investments are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the investment advisor of the Fund. If a market value is not available from an independent pricing source for a particular investment, that investment is valued at fair value as determined in good faith by or under the direction of the Fund’s Board of Directors (the “Board”). Various factors may be reviewed in order to make a good faith determination of an investment’s fair value. These factors include, but are not limited to, fundamental analytical data relating to the investment; the nature and duration of restrictions on disposition of the investments; and the evaluation of forces which influence the market in which the securities or instruments are purchased and sold. Certain investments in which the Fund invests are traded in markets that close before 4:00 p.m., Eastern time. Normally, developments that occur between the close of the foreign markets and 4:00 p.m. Eastern Time will not be reflected in the Fund’s net asset value. However, if the Fund determines that such developments are so significant that they will materially affect the value of the Fund’s investments, the Fund may adjust the previous closing prices to reflect what the Board believes to be the fair value of these investments as of 4:00 p.m. Eastern Time. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Pursuant to the Fund’s use of the practical expedient within ASC Topic 820, investments in non-registered investment companies are also valued at the daily net asset value.

14 

Payments made or received are based on the notional amount.

15 

If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

16 

Payments from/to the counterparty will be received/made upon the occurrence of bankruptcy and/or restructuring event with respect to the referenced index/obligation.

17 

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

18 

Credit spreads, represented in absolute terms, utilized in determining the market value as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default or other credit event occurring for the credit derivative. The credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity.

19 

Payment is based on the performance of the underlying iBoxx GBP Corporates Total Return Index.

Portfolio acronyms

BA    Canadian Bankers’ Acceptance Rate
BBA    British Banking Association
BBSW    Bank Bill Swap Reference Rate (Australian Financial Market)
CD KSDA    Korean Securities Dealer Association 91-day Certificate of Deposit Rate
CLO    Collateralized Loan Obligations
EURIBOR    Euro Interbank Offered Rate
GDP    Gross Domestic Product
GS    Goldman Sachs
IO    Interest only — This security entitles the holder to receive interest payments from an underlying pool of mortgages. The risk associated with this security is related to the speed of the principal paydowns. High prepayments would result in a smaller amount of interest being received and cause the yield to decrease. Low prepayments would result in a greater amount of interest being received and cause the yield to increase.
JIBAR    Johannesburg Interbank Agreed Rate
LIBOR    London Interbank Offered Rate
OJSC    Open Joint Stock Company
Re-REMIC    Combined Real Estate Mortgage Investment Conduit
REMIC    Real Estate Mortgage Investment Conduit
TIPS    Treasury inflation protected securities (“TIPS”) are debt securities issued by the US Treasury whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the TIPS is fixed, while the principal value rises or falls based on changes in a published Consumer Price Index (“CPI”). Thus, if inflation occurs, the principal and interest payments on the TIPS are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the TIPS principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the TIPS generally pay lower interest rates than typical US Treasury securities. Only if inflation occurs will TIPS offer a higher real yield than a conventional Treasury security of the same maturity.
TWCPBA    Taiwan Secondary Market Bills Rate

Counterparty abbreviations

BB    Barclays Bank PLC
CITI    Citibank NA
CSI    Credit Suisse International
DB    Deutsche Bank AG
GSI    Goldman Sachs International
JPMCB    JPMorgan Chase Bank
MLI    Merrill Lynch International
MSCI    Morgan Stanley & Co. International PLC
RBS    Royal Bank of Scotland PLC

Currency abbreviations

AUD    Australian Dollar
BRL    Brazilian Real
CAD    Canadian Dollar
CLP    Chilean Peso
CNY    Chinese Yuan
DKK    Danish Krone
EUR    Euro
GBP    Great Britain Pound
HUF    Hungarian Forint
IDR    Indonesian Rupiah
INR    Indian Rupee
JPY    Japanese Yen
KRW    Korean Won
MXN    Mexican Peso
NGN    Nigerian Naira
NOK    Norwegian Krone
PLN    Polish Zloty
RUB    Russian Ruble
SEK    Swedish Krona
TRY    Turkish Lira
TWD    Taiwan Dollar
USD    United States Dollar
ZAR    South African Rand

The Fund’s Board of Directors (the “Board”) has delegated to the UBS Global Asset Management Global Valuation Committee (“GVC”) the responsibility for making fair value determinations with respect to the Fund’s portfolio holdings. The GVC is comprised of representatives of management, including members of the investment team.

The GVC provides reports to the Board at each quarterly meeting regarding any investments that have been fair valued, valued pursuant to standing instructions approved by the GVC, or where non-vendor pricing sources had been used to make fair value determinations when sufficient information exists during the prior quarter. Fair valuation determinations are subject to review at least monthly by the GVC during scheduled meetings. Pricing decisions, processes, and controls over fair value determinations are subject to internal and external reviews, including annual internal compliance reviews and periodic internal audit reviews of security valuations.

The types of investments for which such fair value pricing may be necessary include, but are not limited to: foreign investments under some circumstances, as discussed below, securities of an issuer that has entered into a restructuring; investments whose trading has been halted or suspended; fixed income securities that are in default and for which there is no current market value quotation; and investments that are restricted as to transfer or resale. The need to fair value the Fund’s portfolio investments may also result from low trading volume in foreign markets or thinly traded domestic investments, and when a security that is subject to a trading limit or collar on the exchange or market on which it is primarily traded reaches the “limit up” or “limit down” price and no trading has taken place at that price. Various factors may be reviewed in order to make a good faith determination of an investment’s fair value. These factors include, but are not limited to, fundamental analytical data relating to the investment; the nature and duration of restrictions on disposition of investments; and the evaluation of forces which influence the market in which the investments are purchased and sold. Valuing investments at fair value involves greater reliance on judgment than valuing investments that have readily available market quotations. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service.

US Generally Accepted Accounting Principles (“GAAP”) requires disclosure regarding the various inputs that are used in determining the value of the Fund’s investments. These inputs are summarized into the three broad levels listed below:

Level 1 — Unadjusted quoted prices in active markets for identical investments.

Level 2 — Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risk.

Level 3 — Unobservable inputs inclusive of the Fund’s own assumptions in determining the fair value of investments.

A fair value hierarchy has been included near the end of the Fund’s Portfolio of investments.

In January 2013, Accounting Standards Update 2013-01 (“ASU 2013-01”), “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, replaced Accounting Standards Update 2011-11 (“ASU 2011-11”), “Disclosures about Offsetting Assets and Liabilities”. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Fund’s financial statements.

For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s annual report to shareholders dated November 30, 2013.

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, as amended (“Investment Company Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

 

  (b) The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company 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.

 

  (a) Certifications of principal executive officer and principal financial officer of registrant pursuant to Rule 30a-2(a) under the Investment Company Act are attached hereto as Exhibit EX-99.CERT.

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.

 

Strategic Global Income Fund, Inc.
By:  

/s/ Mark E. Carver

  Mark E. Carver
  President

Date: April 29, 2014

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/ Mark E. Carver

  Mark E. Carver
  President
Date:   April 29, 2014
By:  

/s/ Thomas Disbrow

  Thomas Disbrow
  Vice President and Treasurer

Date: April 29, 2014