SEC Form N-CSRS filed by Macquarie Global Infrastructure Total Return Fund Inc.
$MGU
Trusts Except Educational Religious and Charitable
Finance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21765
Macquarie Global Infrastructure Total Return Fund Inc.
(Exact name of registrant as specified in charter)
125 West 55th Street, New York, NY 10019
(Address of principal executive offices) (Zip code)
Macquarie Global Infrastructure Total Return Fund Inc.
125 West 55th Street, New York, NY 10019
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1 (866) 567-4771
Date of fiscal year end: November 30
Date of reporting period: May 31, 2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) The Report to Shareholders is attached herewith.
(b) Not applicable.
Table of contents
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Unless otherwise noted, views
expressed herein are current as of May 31, 2022, and subject to change for events occurring after such date.
Other than Macquarie Bank Limited ABN 46 008 583 542
("Macquarie Bank"), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do
not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an
investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return
on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
Section 19(b)
disclosure
| Macquarie Global Infrastructure Total Return Fund Inc. | May 31, 2022 (Unaudited) |
1
Semiannual
commentary
| Macquarie Global Infrastructure Total Return Fund Inc. | May 31, 2022 (Unaudited) |
3
Security type / country
and sector allocations
| Macquarie Global Infrastructure Total Return Fund Inc. | As of May 31, 2022 (Unaudited) |
Sector designations may be different from the sector
designations presented in other Fund materials. The sector designations may represent the investment manager’s internal sector classifications.
| Security type / country | Percentage of net assets |
| Common Stocks by Country | 139.21% |
| Australia | 9.89% |
| Brazil | 0.92% |
| Canada | 18.74% |
| China/Hong Kong | 2.60% |
| Denmark | 1.96% |
| France | 4.43% |
| Germany | 1.18% |
| Italy | 17.49% |
| Japan | 6.15% |
| Mexico | 3.41% |
| Netherlands | 1.65% |
| New Zealand | 1.30% |
| Spain | 12.61% |
| United Kingdom | 13.08% |
| United States | 43.80% |
| Master Limited Partnerships | 1.04% |
| Total Value of Securities | 140.25% |
| Leverage | (42.35%) |
| Receivables and Other Assets Net of Liabilities | 2.10% |
| Total Net Assets | 100.00% |
| Common stock and master limited partnerships by sector | Percentage of net assets |
| Airports | 15.04% |
| Communications Infrastructure | 1.17% |
| Electric Utility | 47.53% |
| Electricity and Gas Distribution | 7.61% |
| Electricity Generation | 1.96% |
| Electricity Transmission | 3.67% |
| Energy Infrastructure | 29.45% |
| Rail & Other Transportation | 6.15% |
| Seaports | 1.65% |
| Toll Roads | 21.02% |
| Water | 5.00% |
| Total | 140.25% |
6
Schedule of
investments
| Macquarie Global Infrastructure Total Return Fund Inc. | May 31, 2022 (Unaudited) |
| Number
of shares |
Value (US $) | ||
| Common Stocks – 139.21%Δ | |||
| Australia − 9.89% | |||
| Atlas Arteria << | 2,305,053 | $ 11,893,851 | |
| Transurban Group << | 2,420,545 | 24,962,186 | |
| 36,856,037 | |||
| Brazil − 0.92% | |||
| CCR | 1,228,433 | 3,414,504 | |
| 3,414,504 | |||
| Canada − 18.74% | |||
| Enbridge << | 631,191 | 29,157,995 | |
| Gibson Energy << | 438,821 | 9,294,394 | |
| Hydro One 144A #, << | 193,602 | 5,400,070 | |
| TC Energy << | 448,853 | 25,979,783 | |
| 69,832,242 | |||
| China/Hong Kong − 2.60% | |||
| CLP Holdings << | 972,000 | 9,692,502 | |
| 9,692,502 | |||
| Denmark − 1.96% | |||
| Orsted 144A #, << | 64,690 | 7,320,490 | |
| 7,320,490 | |||
| France − 4.43% | |||
| Vinci << | 171,579 | 16,518,934 | |
| 16,518,934 | |||
| Germany − 1.18% | |||
| Vantage Towers << | 140,085 | 4,376,298 | |
| 4,376,298 | |||
| Italy − 17.49% | |||
| Atlantia << | 715,250 | 17,330,524 | |
| Enav 144A #, <<, † | 3,947,202 | 18,246,756 | |
| Enel << | 1,628,457 | 10,566,302 | |
| Snam << | 925,061 | 5,372,667 | |
| Terna - Rete Elettrica Nazionale << | 1,615,469 | 13,683,522 | |
| 65,199,771 | |||
| Japan − 6.15% | |||
| East Japan Railway << | 247,900 | 12,736,324 | |
| West Japan Railway << | 275,800 | 10,187,043 | |
| 22,923,367 | |||
7
Schedule of
investments
Macquarie Global Infrastructure Total Return Fund
Inc.
| Number
of shares |
Value (US $) | ||
| Common StocksΔ (continued) | |||
| Mexico − 3.41% | |||
| ALEATICA <<, † | 8,657,616 | $ 7,795,175 | |
| Grupo Aeroportuario del Centro Norte <<, † | 683,123 | 4,922,665 | |
| 12,717,840 | |||
| Netherlands − 1.65% | |||
| Koninklijke Vopak << | 214,715 | 6,154,545 | |
| 6,154,545 | |||
| New Zealand − 1.30% | |||
| Auckland International Airport <<, † | 994,242 | 4,845,904 | |
| 4,845,904 | |||
| Spain − 12.61% | |||
| Aena SME #, <<, † | 183,641 | 28,024,559 | |
| Iberdrola << | 1,242,518 | 14,719,644 | |
| Sacyr << | 1,493,429 | 4,239,048 | |
| 46,983,251 | |||
| United Kingdom − 13.08% | |||
| National Grid << | 1,353,389 | 19,970,298 | |
| Severn Trent << | 350,819 | 12,886,254 | |
| SSE << | 693,114 | 15,476,523 | |
| United Utilities Group << | 31,253 | 416,660 | |
| 48,749,735 | |||
| United States − 43.80% | |||
| Ameren << | 84,702 | 8,062,783 | |
| American Electric Power << | 209,731 | 21,398,854 | |
| Archaea Energy <<, † | 578,468 | 11,534,652 | |
| Cheniere Energy << | 71,975 | 9,844,021 | |
| CMS Energy << | 91,471 | 6,498,100 | |
| Essential Utilities << | 115,647 | 5,349,830 | |
| Eversource Energy << | 130,569 | 12,054,130 | |
| Kinder Morgan << | 743,763 | 14,644,693 | |
| NextEra Energy << | 350,405 | 26,522,154 | |
| NiSource << | 132,708 | 4,173,667 | |
| PPL << | 529,272 | 15,973,429 | |
| Sempra Energy << | 100,017 | 16,388,786 | |
| Xcel Energy << | 143,101 | 10,781,229 | |
| 163,226,328 | |||
| Total Common Stocks (cost $475,389,995) | 518,811,748 | ||
8
| Number
of shares |
Value (US $) | ||
| Master Limited Partnerships – 1.04% | |||
| Magellan Midstream Partners << | 75,126 | $ 3,884,014 | |
| Total
Master Limited Partnerships (cost $3,664,282) |
3,884,014 | ||
| Total
Value of Securities−140.25% (cost $479,054,277) |
$522,695,762 | ||
| Δ | Securities have been classified by country of risk. Aggregate classification by business sector has been presented on page 6 in “Security type / country and sector allocations.” |
| << | Fully or partially pledged as collateral for borrowing transactions. |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At May 31, 2022, the aggregate value of Rule 144A securities was $58,991,875, which represents 15.83% of the Fund's net assets. See Note 9 in “Notes to financial statements." |
| † | Non-income producing security. |
See
accompanying notes, which are an integral part of the financial statements.
9
Statement of assets and
liabilities
| Macquarie Global Infrastructure Total Return Fund Inc. | May 31, 2022 (Unaudited) |
| Assets: | |
| Investments, at value* | $ 522,695,762 |
| Cash | 8,119,919 |
| Foreign currencies, at valueΔ | 116,558 |
| Dividends receivable | 919,076 |
| Foreign tax reclaims receivable | 595,432 |
| Other assets | 125,614 |
| Total Assets | 532,572,361 |
| Liabilities: | |
| Loans payable | 157,842,000 |
| Investment advisory expense payable to affiliates | 1,244,533 |
| Other payables and accrued expenses | 271,037 |
| Payable for fund shares redeemed | 197,251 |
| Interest on loans payable | 162,228 |
| Administration expense payable | 120,979 |
| Directors’ expense payable | 34,439 |
| Total Liabilities | 159,872,467 |
| Total Net Assets | $ 372,699,894 |
| Net Assets Consist of: | |
| Paid-in capital | $ 310,186,009 |
| Total distributable earnings (loss) | 62,513,885 |
| Total Net Assets | $ 372,699,894 |
| Net Asset Value | |
| Common Shares: | |
| Net assets | $ 372,699,894 |
| Shares of common stock outstanding at $0.001 par value, 100,000,000 shares authorized | 12,303,293 |
| Net asset value per share | $ 30.29 |
|
*Investments, at cost |
$ 479,054,277 |
| ΔForeign currencies, at cost | 116,505 |
See accompanying notes,
which are an integral part of the financial statements.
10
Statement of
operations
Macquarie Global Infrastructure Total Return Fund
Inc. Six months ended May 31, 2022 (Unaudited)
| Investment Income: | |
| Dividends | $ 8,432,544 |
| Foreign tax withheld | (653,623) |
| 7,778,921 | |
| Expenses: | |
| Investment advisory | 2,404,026 |
| Interest expense | 815,245 |
| Legal fees | 118,535 |
| Directors | 111,183 |
| Administration | 107,931 |
| Insurance | 83,536 |
| Transfer agent | 45,583 |
| Audit and tax services | 43,705 |
| Custody | 42,682 |
| Printing | 27,015 |
| Other expenses | 123,444 |
| Total operating expenses | 3,922,885 |
| Net Investment Income | 3,856,036 |
| Net Realized and Unrealized Gain (Loss): | |
| Net realized gain (loss) on: | |
| Investments | 22,586,533 |
| Foreign currencies | (33,385) |
| Foreign currency exchange contracts | (115,213) |
| Net realized gain | 22,437,935 |
| Net change in unrealized appreciation (depreciation) of: | |
| Investments | 35,519,217 |
| Foreign currencies | 2,399,485 |
| Net change in unrealized appreciation (depreciation) | 37,918,702 |
| Net Realized and Unrealized Gain | 60,356,637 |
| Net Increase in Net Assets Resulting from Operations | $ 64,212,673 |
See accompanying notes, which are an integral part of
the financial statements.
11
Statements of changes in
net assets
Macquarie Global Infrastructure Total Return Fund
Inc.
| Six
months ended 5/31/22 (Unaudited) |
Year
ended 11/30/21 | ||
| Increase in Net Assets Resulting from Operations: | |||
| Net investment income | $ 3,856,036 | $ 5,434,467 | |
| Net realized gain | 22,437,935 | 8,401,862 | |
| Net change in unrealized appreciation (depreciation) | 37,918,702 | 20,156,266 | |
| Net increase in net assets resulting from operations | 64,212,673 | 33,992,595 | |
| Distributions to Shareholders from: | |||
| Distributable earnings | (9,790,535) | (12,429,082) | |
| Total distributions to shareholders | (9,790,535) | (12,429,082) | |
| Capital Share Transactions: | |||
| Cost of shares redeemed 1 | (1,736,818) | (2,175,413) | |
| Decrease in net assets derived from capital share transactions | (1,736,818) | (2,175,413) | |
| Net Increase in Net Assets | 52,685,320 | 19,388,100 | |
| Net Assets: | |||
| Beginning of period | 320,014,574 | 300,626,474 | |
| End of period | $ 372,699,894 | $ 320,014,574 | |
| 1 | See Note 4 in “Notes to financial statements.” |
See accompanying notes, which are an integral part of
the financial statements.
12
Statement of cash
flows
Macquarie Global Infrastructure Total Return Fund Inc. Six
months ended May 31, 2022 (Unaudited)
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| Net increase (decrease) in net assets resulting from operations | $ 64,212,673 |
| Adjustments to reconcile net increase (decrease) in net assets from operations to net cash provided by (used for) operating activities: | |
| Purchase of investment securities | (127,597,972) |
| Proceeds from disposition of investment securities | 121,286,662 |
| Net realized (gain) loss on investments | (22,586,533) |
| Net change in unrealized (appreciation) depreciation of investments | (35,519,217) |
| Net change in unrealized (appreciation) depreciation of foreign currencies | (2,399,485) |
| Noncash adjustments for dividend income return of capital | 155,886 |
| (Increase) decrease in dividends receivable | (93,512) |
| (Increase) decrease in foreign tax reclaims receivable | (12,804) |
| (Increase) decrease in prepaid arrangement fees on loan outstanding | 119,466 |
| (Increase) decrease in other assets | (14,080) |
| Increase (decrease) in payable for securities purchased | (12,624,510) |
| Increase (decrease) in interest on loans payable | 38,548 |
| Increase (decrease) in investment advisory expense payable to affiliates | 80,852 |
| Increase (decrease) in administration expense payable | 15,874 |
| Increase (decrease) in Directors’ expense payable | (10,856) |
| Increase (decrease) in other payables and accrued expenses | 1,865 |
| Total adjustments | (79,159,816) |
| Net cash provided by (used for) operating activities | (14,947,143) |
| CASH FLOW FROM FINANCING ACTIVITIES: | |
| Cash received from borrowings | 15,000,000 |
| Cost of shares redeemed | (1,539,567) |
| Cash distributions paid | (9,790,535) |
| Net cash used for financing activities | 3,669,898 |
| Effect of exchange rates on cash | (22,515) |
| Net increase (decrease) in cash | (11,299,760) |
| Cash at beginning of period | 19,536,237 |
| Cash at end of period | $ 8,236,477 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |
| Cash paid during the period for interest expense from borrowings | $ 776,698 |
| The following table provides a reconciliation of cash and foreign currencies reported within the statement of financial position that sum to the total of the same amounts shown above at May 31, 2022: | |
| Cash | $ 8,119,919 |
| Foreign currencies, at value | 116,558 |
| Total cash and foreign currencies at end of year | $ 8,236,477 |
See accompanying notes, which are an integral part of
the financial statements.
13
| Six
months ended 5/31/221 (Unaudited) |
Year ended | |||||||||
| 11/30/21 | 11/30/20 | 11/30/19 | 11/30/18 | 11/30/17 | ||||||
| $ 25.86 | $ 24.11 | $ 26.92 | $ 23.92 | $ 28.44 | $ 23.08 | |||||
| 0.31 | 0.44 | 0.39 | 1.29 | 1.21 | 1.19 | |||||
| 4.92 | 2.31 | (1.91) | 3.39 | (4.20) | 5.65 | |||||
| 5.23 | 2.75 | (1.52) | 4.68 | (2.99) | 6.84 | |||||
| (0.80) | (1.00) | (0.99) | (1.68) | (1.53) | (1.27) | |||||
| — | — | — | — | — | (0.21) | |||||
| — | — | (0.30) | — | — | — | |||||
| (0.80) | (1.00) | (1.29) | (1.68) | (1.53) | (1.48) | |||||
| $ 30.29 | $ 25.86 | $ 24.11 | $ 26.92 | $ 23.92 | $ 28.44 | |||||
| $ 25.50 | $ 22.76 | $ 20.63 | $ 24.35 | $ 20.67 | $ 25.16 | |||||
| 20.91% | 12.07% | (4.14%) | 21.40% | (10.10%) | 31.26% | |||||
| 15.70% | 15.28% | (9.31%) | 27.07% | (12.18%) | 38.01% | |||||
| $372,700 | $320,015 | $300,626 | $335,674 | $ 298,271 | $354,551 | |||||
| 2.11% | 2.25% | 2.37% | 2.50% | 2.61% | 2.44% | |||||
| 2.11% | 2.25% | 2.37% | 2.50% | 2.61% | 2.50% | |||||
| 1.67% | 1.81% | 1.82% | 1.75% | 1.76% | 1.72% | |||||
| 2.08% | 1.64% | 1.71% | 4.99% | 4.67% | 4.48% | |||||
| 2.08% | 1.64% | 1.71% | 4.99% | 4.67% | 4.42% | |||||
| 24% | 43% | 62% | 99% | 99% | 71% | |||||
| $159,579 | $145,264 | $132,614 | $142,072 | $ 138,284 | $155,610 | |||||
| 334% | 320% | 327% | 336% | 316% | 328% | |||||
15
Notes to financial
statements
| Macquarie Global Infrastructure Total Return Fund Inc. | May 31, 2022 (Unaudited) |
Macquarie Global Infrastructure Total Return Fund Inc.
(Fund) is a diversified, closed-end investment management company registered under the Investment Company Act of 1940 (1940 Act), as amended, and organized under the laws of the State of Maryland. The Fund’s shares of common stock are listed
on the New York Stock Exchange (NYSE) under the ticker “MGU.”
1. Significant Accounting Policies
The Fund follows accounting and reporting guidance
under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services — Investment Companies. The following accounting policies are in accordance with US generally accepted accounting
principles (US GAAP) and are consistently followed by the Fund.
Security
Valuation — The net asset value (NAV) of the Fund’s shares of common stock will be computed based upon the value of the securities and other assets and liabilities held by the Fund. The NAV is
determined as of the close of regular trading on the NYSE (normally 4:00pm Eastern Time) on each day the NYSE is open for trading. US debt securities and non-US securities will normally be priced using data reflecting the earlier closing of the
principal markets for those securities. Equity securities, except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the NYSE on the valuation date. Equity
securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security does not trade, the mean between the bid and ask prices will be used,
which approximates fair value. US equity securities traded in the over-the-counter market, but excluding securities admitted to trading on the Nasdaq National Market, are valued at the closing bid prices. Equity securities listed on a foreign
exchange are normally valued at the last quoted sales price on the valuation date. Securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close
of the exchange representing the principal market for such securities. Foreign currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date
of the contract is an interim date for which quotations are not available. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the
Fund’s Board of Directors (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.
The Fund may use fair value pricing more frequently for securities traded primarily in non-US markets because, among other things, most foreign markets close well before the Fund values its securities, generally as of 4:00pm Eastern time. The
earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. Whenever such a
significant event occurs, the Fund may value foreign securities using fair value
16
prices based on
third-party vendor modeling tools (international fair value pricing). Restricted securities are valued at fair value using methods approved by the Board.
Federal and Foreign Income Taxes — No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax
positions are “more-likely-than not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current years.
Management has analyzed the Fund’s tax positions taken or expected to be taken on the Fund’s federal/state income tax returns through the six months ended May 31, 2022 and for all open federal income tax years (years ended
November 30, 2019–November 30, 2021) and all open state income tax years (years ended
November 30, 2016–November 30, 2021), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. In regard to foreign taxes only, the Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of the Fund. If applicable, the Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in other expenses on the “Statement of operations.” During the six months ended May 31, 2022, the Fund did not incur any interest or tax penalties.
November 30, 2019–November 30, 2021) and all open state income tax years (years ended
November 30, 2016–November 30, 2021), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. In regard to foreign taxes only, the Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of the Fund. If applicable, the Fund recognizes interest accrued on unrecognized tax benefits in interest expense and penalties in other expenses on the “Statement of operations.” During the six months ended May 31, 2022, the Fund did not incur any interest or tax penalties.
Cash and Cash Equivalents — Cash equivalents are funds (proceeds) temporarily invested in original maturities of 90 days or less.
Restricted
Cash — As of May 31, 2022, the Fund did not classify any funds (proceeds) as restricted.
Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date in accordance with the Fund’s prospectus. The value of all assets and
liabilities denominated in foreign currencies is translated daily into US dollars at the exchange rate of such currencies against the US dollar. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon
settlement of the foreign currency transaction are reported in operations for the current period. The Fund generally does not bifurcate that portion of realized gains and losses on investments which is due to changes in foreign exchange rates from
that which is due to changes in market prices. These gains and losses are included on the “Statement of operations” under “Net realized and unrealized gain (loss) on investments.” The Fund reports certain foreign
currency related transactions as components of realized gains (losses) for financial reporting purposes, whereas such components are treated as ordinary income (loss) for federal income tax purposes.
Use of
Estimates — The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and
17
Notes to financial
statements
Macquarie Global Infrastructure Total Return Fund
Inc.
1. Significant Accounting
Policies (continued)
expenses during the reporting period. Actual results
could differ from those estimates and the differences could be material.
Distributions to Shareholders — The Fund intends to distribute to holders of its common shares monthly distributions of all or a portion of its net income and/or realized gains after payment of interest in connection with any
leverage used by the Fund. Distributions to shareholders are recorded by the Fund on the ex-dividend date.
The Fund has received approval from the Securities
Exchange Commission (SEC) for exemption from Section 19(b) of the 1940 Act, and Rule 19b-1 thereunder permitting the Fund to make periodic distributions of long-term capital gains more frequently than otherwise permitted by the 1940 Act, provided
that the Fund adheres to the distribution policy that requires the Fund to make level distributions each month to shareholders of common stock after payment of interest on any outstanding borrowings.
Other
— Expenses directly attributable to the Fund are charged directly to the Fund. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date)
for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis. Taxable non-cash dividends are recorded as dividend income. Distributions received from investments in real estate investment trusts (REITs) are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. Distributions received from Master Limited Partnerships are recorded as return on capital on the
ex-dividend date. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Fund is aware of such dividends, net of all tax withholdings, a portion of which may be reclaimable. Withholding taxes and reclaims on foreign dividends have been recorded in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.
ex-dividend date and interest income is recorded on the accrual basis. Taxable non-cash dividends are recorded as dividend income. Distributions received from investments in real estate investment trusts (REITs) are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. Distributions received from Master Limited Partnerships are recorded as return on capital on the
ex-dividend date. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Fund is aware of such dividends, net of all tax withholdings, a portion of which may be reclaimable. Withholding taxes and reclaims on foreign dividends have been recorded in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.
2. Investment Advisory and Management Agreement,
Affiliated Transactions and Administration Agreements
Delaware Management Company, a series of Macquarie
Investment Management Business Trust (MIMBT), is also responsible for managing the Fund’s business affairs, overseeing other service providers and providing management services. As compensation for its services to the Fund, and in accordance
with the terms of its investment management agreement with the Fund, DMC receives an annual management fee, payable on a quarterly basis, equal to the annual rate of 1.00% of the Fund’s Total Assets (as defined below) up to and including $300
million, 0.90% of the Fund’s Total Assets over $300 million up to and including $500 million, and 0.65% of the Fund’s Total Assets over $500 million. Total Assets of the Fund, for the purpose of this calculation, include the aggregate of
the Fund’s average daily net assets plus proceeds from any
18
outstanding borrowings
used for leverage. On July 14, 2021, the Board approved the renewal of the Fund’s Advisory Agreement, pursuant to which MIMBT, through its DMC series, serves as the Fund’s investment manager.
The Fund may place a portion of its portfolio
transactions with a brokerage firm which is an affiliate of MIMBT. There were no commissions paid to the affiliated firm for the six months ended May 31, 2022.
Computershare Trust Company, N.A. (Computershare)
serves as the Fund’s Transfer Agent,
dividend-paying agent, and registrar. As compensation for Computershare’s services, the Fund pays Computershare a monthly fee plus certain out-of-pocket expenses.
dividend-paying agent, and registrar. As compensation for Computershare’s services, the Fund pays Computershare a monthly fee plus certain out-of-pocket expenses.
3. Investments
For the six months ended May 31, 2022, the Fund made
purchases and sales of investment securities other than US government securities and short-term investments as follows:
| Purchases | $127,597,972 |
| Sales | 121,286,662 |
At May 31, 2022, the cost
and unrealized appreciation (depreciation) of investments and derivatives for federal income tax purposes have been estimated since final tax characteristics cannot be determined until fiscal year end. At May 31, 2022, the cost and unrealized
appreciation (depreciation) of investments and derivatives for the Fund were as follows:
| Cost of investments | $479,054,277 |
| Aggregate unrealized appreciation of investments | $ 70,210,798 |
| Aggregate unrealized depreciation of investments | (26,569,312) |
| Net unrealized appreciation of investments | $ 43,641,486 |
US GAAP defines fair value as the price that the Fund
would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established
based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs
reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about
the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The Fund's
19
Notes to financial
statements
Macquarie Global Infrastructure Total Return Fund
Inc.
3. Investments (continued)
investment in its entirety is assigned a level based
upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows:
Level 1
− Inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, and exchange-traded options contracts)
Level 2
− Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active,
inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs.
(Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, and fair valued securities)
Level 3
− Significant unobservable inputs, including the Fund's own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities and fair valued securities)
Level 3 investments are valued using significant
unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any
restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the
value which is received upon disposition and this could impact the results of operations.
20
The following table
summarizes the valuation of the Fund’s investments by fair value hierarchy as of May 31, 2022:
| Level 1 | Level 2 | Total | |||||
| Securities | |||||||
| Assets: | |||||||
| Common Stocks | |||||||
| Australia | $ — | $36,856,037 | $ 36,856,037 | ||||
| Brazil | 3,414,504 | — | 3,414,504 | ||||
| Canada | 69,832,242 | — | 69,832,242 | ||||
| China/Hong Kong | 9,692,502 | — | 9,692,502 | ||||
| Denmark | 7,320,490 | — | 7,320,490 | ||||
| France | 16,518,934 | — | 16,518,934 | ||||
| Germany | 4,376,298 | — | 4,376,298 | ||||
| Italy | 65,199,771 | — | 65,199,771 | ||||
| Japan | 22,923,367 | — | 22,923,367 | ||||
| Mexico | 12,717,840 | — | 12,717,840 | ||||
| Netherlands | 6,154,545 | — | 6,154,545 | ||||
| New Zealand | 4,845,904 | — | 4,845,904 | ||||
| Spain | 46,983,251 | — | 46,983,251 | ||||
| United Kingdom | 48,749,735 | — | 48,749,735 | ||||
| United States | 163,226,328 | — | 163,226,328 | ||||
| Master Limited Partnerships | 3,884,014 | — | 3,884,014 | ||||
| Total Value of Securities | $485,839,725 | $36,856,037 | $522,695,762 | ||||
During the period ended May 31, 2022, there were no
transfers into or out of Level 3 investments. This does not include transfers between Level 1 investments and Level 2 investments due to the Fund utilizing international fair value pricing during the period. In accordance with the fair valuation
procedures described in Note 1, international fair value pricing of securities in the Fund occurs when market volatility exceeds an established threshold. If the threshold is exceeded on a given date, then prices of international securities (those
that traded on exchanges that close at a different time than the time that the Fund’s NAV is determined) are established using a separate pricing feed from a third-party vendor designed to establish a price for each such security as
of the time that the Fund’s NAV is determined. Further, international fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occurring after the close of the exchange or market on
which the investment is principally traded, causing a change in classification between levels. The Fund’s policy is to recognize transfers into or out of Level 3 investments based on fair value at the beginning of the reporting
period.
A reconciliation of Level 3 investments
is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to the Fund's net assets. During the six months ended May 31, 2022, there were no Level 3 investments.
21
Notes to financial
statements
Macquarie Global Infrastructure Total Return Fund
Inc.
4. Capital Transactions
| Six months ended | Year ended | ||
| 05/31/22 | 11/30/21 | ||
| Shares: | |||
| Common Shares Outstanding - beginning of year | 12,373,293 | 12,468,293 | |
| Common Shares Redeemed | (70,000) | (95,000) | |
| Common Shares Outstanding - end of year | 12,303,293 | 12,373,293 | |
5. Derivatives
US GAAP requires disclosures that enable investors to
understand: (1) how and why an entity uses derivatives; (2) how they are accounted for; and (3) how they affect an entity’s results of operations and financial position.
Foreign Currency Exchange Contracts — The Fund may enter into foreign currency exchange contracts as a way of managing foreign exchange rate risk. The Fund may enter into these contracts to fix the US dollar value of a security that it has agreed to
buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Fund may also use these contracts to hedge the US dollar value of securities it already owns that are denominated in
foreign currencies. In addition, the Fund may enter into these contracts to facilitate or expedite the settlement of portfolio transactions. The change in value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain
or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of foreign currency exchange contracts does not
eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although foreign currency exchange contracts limit the risk of loss due to an unfavorable change in the
value of the hedged currency, they also limit any potential gain that might result should the value of the currency change favorably. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms
of their contracts. The Fund’s maximum risk of loss from counterparty credit risk is the value of its currency exchanged with the counterparty. The risk is generally mitigated by having a netting arrangement between the Fund and the
counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.
During the six months ended May 31, 2022, the Fund
entered into foreign currency exchange contracts to facilitate or expedite the settlement of portfolio transactions.
During the six months ended May 31, 2022, the Fund
experienced net realized gains or losses attributable to foreign currency holdings, which is disclosed as on the “Statement of operations.”
22
The table below
summarizes the average balance of derivative holdings by the Fund during the six months ended May 31, 2022:
| Long
Derivative Volume |
Short
Derivative Volume | ||||
| Foreign currency exchange contracts (average notional value) | $886,616 | $239,134 | |||
6. Leverage
The Fund has entered into a Committed Facility
Agreement with BNP Paribas Prime Brokerage International Ltd. (the BNP Paribas Facility or the Agreement), which provides for a committed credit facility to be used as leverage for the Fund. The BNP Paribas Facility provides for secured, committed
lines of credit for the Fund, where selected Fund assets are pledged against advances made to the Fund. Under the 1940 Act, the Fund, after any such borrowings, must have asset coverage of at least 300% (33 1/3% of the Fund’s Total Assets
after borrowings). Under the current terms, the total amount of loans that may be outstanding at any one time, or the Maximum Commitment Financing (MCF), under the BNP Paribas Facility is $120,000,000 and euro 40,000,000. The Fund may reduce the MCF
by a total aggregate amount of up to $20,000,000 upon one business day’s prior notice (no more than one time per calendar month). The Fund pays 0.55% per annum above 3-month LIBOR for the US dollar line and 0.55% above the 3-month EURIBOR for
the euro line.
On July 23, 2014, $60,000,000 of
the US dollar line was fixed for a five-year period. As of July 26, 2018, the rate was re-negotiated to 2.303% for the remaining term of the five-year period. The Fund paid an arrangement fee of 0.25% on the fixed rate borrowing.
Effective August 26, 2019, $60,000,000 of the US dollar
line was fixed and euro 25,000,000 for the euro line for a five-year period. At the end of the five-year period, following business day conventions, the fixed financing will be reduced to zero and the floating rate financing will be increased by the
same amount, unless the parties agree in writing to amend or extend the term of the relevant fixed rate periods. The Fund paid an arrangement fee of 0.25% on the fixed rate borrowing.
Effective November 8, 2021, the reference rate changed
to the Secured Overnight Financing Rate for the US dollar line and Euro Short Term Rate for the euro line. As of May 31, 2022, the Fund had $54,900,000 and euro 15,000,000 in leverage outstanding on the variable lines, and $60,000,000
outstanding and euro 25,000,000 on the fixed line. The carrying values of the loan approximate fair values. The daily average amounts outstanding over the period on the variable line was $48,086,813, with an average rate on the borrowing of 0.796%,
and euro 15,000,000 with the average rate on borrowing of -0.03%.
The unused amount under the BNP Paribas Facility was
$5,100,000 at May 31, 2022. The loan payable is carried at value, and the euro line is adjusted daily for foreign currency translation. At
23
Notes to financial
statements
Macquarie Global Infrastructure Total Return Fund
Inc.
6. Leverage (continued)
May 31, 2022, the Fund maintained an asset coverage of
334%, and the market value of the securities pledged as collateral for the BNP Paribas Facility totaled $519,281,259.
7. Soft Dollar Arrangement
DMC maintains commission sharing arrangements with
various executing brokers in which a portion of total commissions paid by the Fund is allocated to a pool of “credits” maintained by a broker. These credits may be used to pay for a portion of DMC’s permitted investment research
services.
8. Compensation of Directors
Effective January 1, 2020, the Chair of the Board of
Directors receives an annual retainer of $58,750, paid quarterly, for his services to the Fund, and each other non-interested Director of the Fund received an annual retainer of $50,000, paid quarterly, for his or her services to the Fund.
Non-interested Directors and the Chairman also receive an additional $2,500 for each meeting attended, and $1,500 for each telephonic meeting. Additional out-of-pocket expenses are paid as incurred.
9. Credit and Market Risk
Beginning in January 2020, global financial markets
have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain
disruptions, lower consumer demand, and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations, and individual issuers, all of which may negatively impact
the Fund’s performance.
Investments in
equity securities in general are subject to market risks that may cause their prices to fluctuate over time. Fluctuations in the value of equity securities in which the Fund invests will cause the NAV of the Fund to fluctuate.
Some countries in which the Fund may invest require
governmental approval for the repatriation of investment income, capital, or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country
may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are
substantially smaller, less liquid, and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Fund may be inhibited. In addition, a significant portion of the aggregate
market value of equity securities listed on the major securities exchanges in emerging
24
markets is held by a
smaller number of investors. This may limit the number of shares available for acquisition or disposition by
the Fund.
the Fund.
The Fund may invest up to 15% of its net assets in
illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended, and other securities which may not be readily
marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Board has delegated to DMC, the
day-to-day functions of determining whether individual securities are liquid for purposes of the Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid,
are not subject to the Fund’s 15% limit on investments in illiquid securities. Rule 144A securities have been identified on the “Schedule of investments.”
10. Contractual Obligations
The Fund enters into contracts in the normal course of
business that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund's existing
contracts and expects the risk of loss to be remote.
11. Share Repurchase Program
The Board approved the share repurchase program on
January 20, 2021. On January 26, 2021, the Fund announced the adoption of an open-market share repurchase program pursuant to which the Fund may purchase, from time to time, up to 10% of its common shares in open-market transactions, at the
discretion of management in an effort to reduce the Fund’s market price discount to net asset value. Subject to the 10% limitation, the timing and amount of repurchases will be in the discretion of the Fund’s management. In exercising
their discretion, management will take into account various other factors, including, but not limited to, the level of the discount, the Fund’s performance, portfolio holdings, dividend history, market conditions, cash on hand, the
availability of other attractive investments, and whether the sale of certain portfolio securities would be undesirable because of liquidity concerns or because the sale might subject the Fund to adverse tax consequences. Any repurchases would be
made on a national securities exchange at the prevailing market price, subject to exchange requirements,
federal securities laws and rules that restrict repurchases, and the terms of any outstanding leverage or borrowing of the Fund.
federal securities laws and rules that restrict repurchases, and the terms of any outstanding leverage or borrowing of the Fund.
The Fund intends to repurchase its common shares, at
such times and in such amounts as is deemed advisable and in accordance with applicable law, subject to various factors, including the limitations imposed by the federal securities laws governing the repurchase of an issuer’s shares by the
issuer.
25
Notes to financial
statements
Macquarie Global Infrastructure Total Return Fund
Inc.
11. Share Repurchase
Program (continued)
For the period ended May 31, 2022 the Fund repurchased
165,000 common shares at an average price of $23.70 per share (including brokerage commissions) and at a weighted average discount of 12.21%. These repurchases had a total cost of $1,736,818 (including brokerage commissions).
12. Subsequent Events
Management has determined that no material events or
transactions occurred subsequent to May 31, 2022, that would require recognition or disclosure in the Fund’s financial statements.
26
Additional information
(Unaudited)
Macquarie Global Infrastructure Total Return Fund
Inc.
Dividend Reinvestment Plan
Unless a stockholder of the Fund (Stockholder) elects
to receive cash distributions, all dividends, including any capital gain dividends, on the Stockholder’s Common Shares will be automatically reinvested by the Plan Agent, Computershare, in additional Common Shares under the Dividend
Reinvestment Plan. If a Stockholder elects to receive cash distributions, the Stockholder will receive all distributions in cash paid by check mailed directly to the Stockholder by Computershare, as dividend paying agent.
If a Stockholder decides to participate in the Plan,
the number of Common Shares the Stockholder will receive will be determined as follows:
• If Common Shares are trading at or above
Net Asset Value (NAV) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date.
• If Common Shares are trading below NAV at
the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the New York Stock Exchange or elsewhere, for the participants’ accounts. It is possible that the
market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase
of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the
valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments.
A Stockholder may withdraw from the Plan at any time by
giving written notice to the Plan Agent, or by telephone in accordance with such reasonable requirements as the Plan Agent and Fund may agree upon. If a Stockholder withdraws or the Plan is terminated, the Stockholder will receive a certificate for
each whole share in its account under the Plan and the Stockholder will receive a cash payment for any fraction of a share in its account. If the Stockholder wishes, the Plan Agent will sell the Stockholder’s shares and send the proceeds,
minus brokerage commissions, if any, to the Stockholder.
The Plan Agent maintains all Stockholders’
accounts in the Plan and gives written confirmation of all transactions in the accounts, including information a Stockholder may need for tax records. Common Shares in an account will be held by the Plan Agent in non-certificated form. The Plan
Agent will forward to each participant any proxy solicitation material and will vote any shares so held only in accordance with proxies returned to the Fund. Any proxy a Stockholder receives will include all Common Shares received under the
Plan.
There is no brokerage charge for
reinvestment of a Stockholder’s dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.
27
Additional information
(Unaudited)
Macquarie Global Infrastructure Total Return Fund
Inc.
Automatically reinvesting dividends and distributions
does not mean that a Stockholder does not have to pay income taxes due upon receiving dividends and distributions.
Dividend Reinvestment Plan (continued)
If a Stockholder holds Common Shares with a brokerage
firm that does not participate in the Plan, the Stockholder will not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those described above. Stockholders should consult their financial adviser
for more information.
The Fund reserves the right
to amend or terminate the Plan if in the judgment of the Board of Directors the change is warranted. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge
payable by the participants.
All correspondence
or questions concerning the Plan should be directed to the Plan Administrator, Computershare, PO Box 505000, Louisville, KY 40233 or Computershare, 462 South 4th Street, Louisville, KY 40202 (for overnight courier), 866 587-4518.
Fund Proxy Voting Policies and Procedures
Policies and procedures used in determining how to vote
proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, are available without a charge, upon request, by contacting the Fund at 866 587-4518 or on the
Fund’s website at macquarieim.com/mgu and on the Securities Exchange Commission (SEC)’s website at sec.gov.
Portfolio Holdings
The Fund files its complete schedule of portfolio
holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Forms N-PORT, as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating
to portfolio securities, are available without charge (i) upon request, by calling 866 587-4518; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Fund uses to determine how to vote
proxies (if any) relating to portfolio securities and the Schedule of Investments included in the Fund’s most recent Form N-PORT are available without charge on the Fund’s website at macquarieim.com/mgu.
Notice
Notice is hereby given in accordance with Section 23(c)
of the 1940 Act that the Fund may purchase at market prices from time to time shares of its common stock in the open market.
28
Decision to
opt into Maryland Control Share Acquisition Act
On May 3, 2022, the Fund announced that the
Fund’s Board has unanimously approved the Fund’s election to be subject to the Maryland Control Share Acquisition Act (MCSAA), effective as of April 27, 2022. The objective of the MCSAA is to protect the interests of all shareholders of
a Maryland corporation. It achieves this by limiting the voting power of a large investor or group acting in concert on newly acquired shares above various threshold levels that start at 10%. Those shares can be voted only if two-thirds of the
shares held by the other shareholders agree to grant voting rights to these “control” shares.
Application of the MCSAA seeks to limit the ability of
an acquiring person to achieve a short-term gain at the expense of long-term value for the rest of the Fund’s shareholders. The MCSAA will only apply to “control shares” acquired after April 27, 2022, the date that the Fund elected
to be subject to the MCSAA. The above description of the MCSAA is only a high-level summary and investors should refer to the actual provisions of the MCSAA for more information.
Section 19(a) Notices
The following table sets forth the estimated amount of
the sources of distribution for purposes of Section 19 of the 1940 Act, as amended, and the related rules adopted there under. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and
prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain, and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are
disclosed for the fiscal
year-to-date cumulative distribution amount per share for the Fund.
year-to-date cumulative distribution amount per share for the Fund.
The amounts and sources of distributions reported in
these 19(a) notices are only estimates and not for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and
may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
29
Additional information
(Unaudited)
Macquarie Global Infrastructure Total Return Fund
Inc.
| Total
Cumulative Distributions for the six months ended May 31, 2022 | |||||
| Net
Investment Income |
Net
Realized Short- Term Capital Gains |
Net
Realized Long- Term Capital Gains |
Return
of Capital |
Total
Per Common Share | |
| $0.3559 | $0.2322 | $0.2039 | $— | $0.7920 | |
| Percentage
Breakdown of the Total Cumulative Distributions for the six months ended May 31, 2022 | |||||
| Net
Investment Income |
Net
Realized Short- Term Capital Gains |
Net
Realized Long- Term Capital Gains |
Return
of Capital |
Total
Per Common Share | |
| 44.94% | 29.32% | 25.74% | 0.00% | 100.00% | |
The Fund’s
distribution policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Fund may at times pay out less than
the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the
distributions paid by the Fund for any particular month may be more or less than the amount of net investment income earned by the Fund during such month. The Fund’s current accumulated but undistributed net investment income, if any, is
disclosed in the Statement of assets and liabilities, which comprises part of the financial information included in this report.
Proxy results
The Fund held its Annual Meeting of Stockholders (the
“Annual Meeting”) on July 14, 2021. At the Annual Meeting, the Fund’s stockholders elected one Director. The results of the voting at the meeting were as follows:
| Nominee | Shares voted for | Shares against/withheld |
| Gordon A. Baird | 10,392,162.000 | 850,257.000 |
30
The Fund's
Investment Objective, Principal Investment Strategies and Risks
What is the Fund's investment objective?
The Fund's investment objective is to provide to its
common stockholders a high level of total return consisting of dividends and other income, and capital appreciation.
What are the Fund’s principal investment
strategies?
The Fund seeks to achieve its
investment objective by investing, under normal market conditions, at least 80% of its Total Assets (as defined below) in equity and equity-like securities and instruments, such as common stocks, preferred stocks, convertible securities and hybrid
securities issued by US and non-US issuers (Infrastructure Issuers) that primarily own or operate Infrastructure Assets (as defined below) (the 80% policy). “Total Assets” of the Fund, for the purpose of this calculation, include the
aggregate of the Fund’s average daily net assets plus proceeds from any outstanding borrowings used for leverage. The 80% policy is non-fundamental and may be changed without shareholder approval. Fund shareholders would be given at least 60
days' notice prior to any such change. “Infrastructure Assets” are an underlying foundation of basic services, facilities and institutions upon which the growth and development of a community depends. Infrastructure Assets may provide
the necessities of everyday life, such as fresh water, roads, airports, utilities, power, steam heating systems, hospitals, schools and other social services. Infrastructure Assets provide the transportation corridors and facilities, communications
networks, energy distribution systems and pipelines, and institutions that are fundamental to the health of an economy. Infrastructure Issuers include both publicly traded and privately held non-governmental entities. These entities may issue debt
or equity securities. Although the Infrastructure Issuers in which the Fund will invest will be non-governmental issuers, governmental units and government-related entities may hold securities issued by such non-governmental Infrastructure Issuers,
at times to a significant extent.
The
Manager seeks to identify and select investments in Infrastructure Issuers that, over the long term, are anticipated to produce attractive dividend yield, and capital appreciation commensurate with the underlying risk of the investment. The Manager
analyzes Infrastructure Issuers through detailed analysis of long-term fundamentals to determine the quality of their assets. The Manager believes that analysis of an Infrastructure Issuer’s underlying assets is key to determine the long-term
quality of the Infrastructure Issuer’s potential revenue and income streams. The Manager believes investments made on the basis of a systematic, fundamentals-based approach identifying long-term potential value in Infrastructure Issuers should
outperform investments made on the basis of short-term market factors. The Fund may invest in securities and instruments of Infrastructure Issuers that are forecast to decline in value due to the nature of the assets of the Infrastructure
Issuer under circumstances where such decline is anticipated to be offset by positive overall total return.
Certain members of the Macquarie Group (other than the
Manager), primarily those involved in the Macquarie Group’s infrastructure funds management and infrastructure advisory divisions, focus on identifying investment opportunities in securities of Infrastructure Issuers that are neither listed on
an exchange nor traded over-the-counter. Generally, these opportunities are not appropriate for the Fund due to the investment size and the significant level of control sought.
31
Additional information
(Unaudited)
Macquarie Global Infrastructure Total Return Fund
Inc.
Periodically, however, opportunities may be identified that meet the
Fund’s investment objective, policies and guidelines and the Manager may be presented with the opportunity to invest the assets of the Fund in such opportunities. The Manager may, if in accordance with the 1940 Act and the Fund’s
investment objective, guidelines and policies, cause the Fund to make such investment. The Manager anticipates that the majority, and possibly all, of the Fund’s opportunities to invest the assets of the Fund in such securities will be
presented to the Manager through such other members of the Macquarie Group. No agreement exists between any member of the Macquarie Group and the Fund with respect to presenting such opportunities and no assurances can be given that any such
opportunities will be presented to the Manager or, if presented, will be deemed to be a suitable investment for the Fund or will be permitted under the 1940 Act. No other member of the Macquarie Group will render investment advice to the Fund.
Up to 100% of the Fund’s Total Assets may be
composed of securities issued by Infrastructure Issuers primarily located outside the United States. Such Infrastructure Issuers are non-US issuers and, although primarily located outside the United States, may own or operate Infrastructure Assets
located in the United States. Such securities generally will be denominated in currencies other than the US dollar. The Fund may also purchase sponsored American Depository Receipts (ADRs) or US dollar-denominated securities of non-US Infrastructure
Issuers. ADRs are receipts issued by United States banks or trust companies in respect of securities of non-US issuers held on deposit for use in the United States securities markets.
The Fund normally invests at least 85% of its Total
Assets in securities and instruments of issuers that are listed on national or regional exchanges, or traded over-the-counter, with most issuers expected to be listed on a national or regional exchange. Under normal market conditions, the Fund may
invest up to 15% of its Total Assets in unlisted securities or instruments of Infrastructure Issuers, although this is not a primary focus of the Fund. These unlisted securities or instruments may include equity, hybrid, convertible preferred
instruments and debt instruments.
The Fund also
applies the following guidelines to its investments at the time of investment: (i) no more than 5% of the Fund’s Total Assets may be invested in securities or instruments issued by any single Infrastructure Issuer; (ii) no more than 10% of the
Fund’s Total Assets may be invested in securities or instruments issued by Infrastructure Issuers primarily located in any one non-Organization for Economic Cooperation and Development (OECD) country; (iii) no more than 30% of the Fund’s
Total Assets may be invested in securities or instruments issued by Infrastructure Issuers primarily located in non-OECD countries; and (iv) no more than 30% of the Fund’s Total Assets may be invested in securities or instruments issued by
Infrastructure Issuers primarily located in any one country that is a part of the OECD, except that the Fund may invest up to 50% of the Fund’s Total Assets in Infrastructure Issuers primarily located in the United States.
The hybrid securities in which the Fund may invest
include stapled securities and various income trust units, including securities and instruments under which the issuers’ obligations to pay distributions on the securities and instruments may be linked to profits. Stapled securities typically
consist of two or more related securities that are “stapled” together to trade as one unit. Income trusts are generally designed to distribute, in a tax-efficient manner, cash flows from an
32
operating company to the
holders of the trust units. Income fund units, stapled securities and other “hybrid” securities will be treated as equity securities for the purposes of the Fund’s investment strategies.
The Fund may invest, under normal market conditions, up
to 20% of its Total Assets in instruments that are not required to be issued by Infrastructure Issuers and debt securities, including bonds, notes (including structured notes), mortgage-backed securities, asset-backed securities, Eurodollar and
Yankee dollar instruments, and money market instruments. Debt securities may be issued by corporate and governmental issuers and may have all types of interest rate payment and reset terms, including fixed rate, adjustable rate, zero coupon,
contingent, deferred, payment-in-kind and auction rate. There is no minimum credit rating for the securities and instruments in which the Fund may invest. The Fund may invest up to 20% of its Total Assets in debt securities or instruments rated
non-investment grade by recognized statistical rating agencies or unrated securities of comparable quality.
The Fund may invest, to the extent permitted by law, in
securities and instruments of other open- or closed-end US or non-US investment companies that invest primarily in securities of the types in which the Fund may invest directly. In addition, the Fund may invest a portion of its Total Assets in US or
non-US pooled investment vehicles (other than investment companies) that invest primarily in securities, or the assets underlying those securities, of the types in which the Fund may invest directly. The Fund generally expects that it may invest in
other investment companies and/or pooled investment vehicles either during periods when it has large amount of uninvested cash, such as the period shortly after the Fund receives the proceeds of leverage instruments, or during periods when there is
a shortage of attractive securities of the types in which the Fund may invest directly available in the market.
The Fund may, but is not obligated to, use a variety of
financial instruments and investment techniques to attempt to hedge certain risks to which it will be subject. The instruments and techniques in which the Fund may invest include options, forward contracts, futures contracts, and swap agreements.
The Fund does not intend to enter into short sales other than short sales “against the box,” which are transactions in which the seller already owns the security being sold short. Examples of financial instruments in which the Fund
may invest include options on securities, currencies and indexes; interest rate futures contracts, index futures contracts and foreign currency futures contracts; the Fund may purchase and write call and put futures options; the Fund may enter into
swap agreements and related caps, floors and collars; and the Fund may invest in warrants.
The Fund may enter into forward contracts, including
forward currency contracts, in an effort to hedge the Fund’s exposure to investments in non-US currencies. Similarly, the Fund may use interest rate futures contracts, index futures contracts and foreign currency futures contracts, and may
purchase and sell options on futures. A conventional futures contract is an agreement under which one party agrees to accept, and the other party agrees to make, delivery of the underlying asset to which the futures contract relates at a specified
future time and at a specified price.
The Fund
may enter into swap transactions with respect to income streams on an underlying investment, currency exchange rates, indices, and interest rates.
33
Additional information
(Unaudited)
Macquarie Global Infrastructure Total Return Fund
Inc.
Though not a significant component of its investment
strategy, the Fund may use certain financial instruments and investment techniques, such as writing covered calls, to increase its income or total return.
The Fund does not normally use any derivative financial
instruments or investment techniques for purely speculative purposes. The Manager, on behalf of the Fund, has claimed an exclusion from the definition of the term “commodity pool operator” (CPO) under the Commodity Exchange Act (CEA)
and, as a result, is not subject to registration or regulation as a CPO under the CEA.
The Fund may buy and sell securities on a when-issued
or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.
As temporary investments, the Fund may invest in
repurchase agreements.
Although it is not the
Fund’s current intention, the Fund may lend its portfolio securities to broker-dealers and banks.
The Fund may not use leverage at all times and the
amount of leverage may vary depending upon a number of factors, including the Manager’s outlook for the market and the costs that the Fund would incur as a result of such leverage. The Fund will not issue leverage instruments with an aggregate
issue price exceeding 33 1/3% (in the case of debt) or 50% (in the case of preferred stock) of the Fund’s Total Assets (including the proceeds from the issuance of leverage instruments) in each case at the time such leverage instruments
are issued. Following the issuance of leverage instruments, however, the balance of outstanding leverage instruments may exceed 33 1/3% or 50% (as applicable) of the Fund’s Total Assets due to a reduction in the value of the
Fund’s Total Assets, subject to restrictions on leverage imposed by the 1940 Act.
The Fund may also borrow money as a temporary measure
for extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely dispositions of Fund securities. This borrowing will be subject to the 33 1/3%
limitation described above.
During periods in
which the Manager determines that it is temporarily unable to follow the Fund’s investment strategy or that it is impractical to do so, the Fund may deviate from its principal investment strategies or any of the guidelines set out above and
invest all or any portion of its assets in securities with remaining maturities of less than one year, cash or cash equivalents. The Manager’s determination that it is temporarily unable to follow the Fund’s investment strategy or that
it is impractical to do so will generally occur only in situations in which a market disruption event has occurred and where trading in the securities selected through application of the Fund’s investment strategy is extremely limited or
absent. In such a case, the value of shares of the Fund may be adversely affected and the Fund may not pursue or achieve its investment objective.
34
What are
the principal risks of investing in the Fund?
Investing in any closed-end fund, such as the Fund,
involves the risk that you may lose part or all of the money you invest. Over time, the value of your investment in the Fund will increase and decrease according to changes in the value of the securities in the Fund’s portfolio. An investment
in the Fund may not be appropriate for all investors. The Fund’s principal risks include:
Active management and selection risk — The risk that the securities selected for the Fund by the Manager will underperform the markets, the relevant indices, or the securities selected for other funds with similar investment objectives and investment
strategies. The securities and sectors selected may vary from the securities and sectors included in the relevant index.
Industry and sector
risk — The risk that the value of securities in a particular industry or sector (such as infrastructure) will decline because of changing expectations for the performance of that industry or
sector.
Infrastructure risk — Infrastructure Issuers may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high
leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices,
the effects of energy conservation policies and other factors. Some of the specific risks that Infrastructure Issuers may be particularly affected by, or subject to, include the following: regulatory risk, technology risk, regional or geographic
risk, natural disasters risk, through-put risk, project risk, strategic asset risk, operation risk, customer risk, interest rate risk, inflation risk and financing risk. Other factors that may affect the operations of Infrastructure Issuers include
difficulty in raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets, inexperience with and potential losses resulting from a developing deregulatory environment, increased susceptibility
to terrorist acts or political actions, and general changes in market sentiment towards infrastructure assets. In addition, the change in presidential administration could significantly impact the regulation of United States financial markets and
dramatically alter existing trade, tax, energy and infrastructure policies, among others. It is not possible to predict what, if any, changes will be made or their potential effect on the economy, securities markets, or financial stability of the
United States, or on the energy, natural resources, infrastructure and other markets.
Foreign risk and emerging markets risk — The risk that international investing (particularly in emerging markets) may be adversely affected by political instability; changes in currency exchange rates; inefficient markets and higher transaction costs;
foreign economic conditions; the imposition of economic or trade sanctions; or inadequate or different regulatory and accounting standards. The risk associated with international investing will be greater in emerging markets than in more developed
foreign markets because, among other things, emerging markets may have less stable political and economic environments. In addition, there often is substantially less publicly available information about issuers and such information tends to be of a
lesser quality. Economic markets and structures tend to be less mature and diverse and the securities markets may also be smaller, less liquid, and subject to greater price volatility.
35
Additional information
(Unaudited)
Macquarie Global Infrastructure Total Return Fund
Inc.
Currency risk —
The risk that fluctuations in exchange rates between the US dollar and foreign currencies and between various foreign currencies may cause the value of an investment to decline.
Market risk — The
risk that all or a majority of the securities in a certain market — such as the stock or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence,
or heavy institutional selling.
Credit risk — The risk that an issuer of a debt security, including a governmental issuer or an entity that insures a bond, may be unable to make interest payments and/or repay principal in a timely manner. For a further
discussion of credit and market risks, see Note 11 in “Notes to financial statements.”
Equity risk — The
risk that stocks and other equity securities generally fluctuate in value more than bonds. Also the risk that an issuer does not realize sufficient income in a particular period both to service its liabilities and to pay dividends on its equity
securities and may forgo paying dividends on its equity securities.
Preferred securities risk — The risk that the value of preferred securities may be impacted by an issuer’s inability to make interest payments and/or repay principal in a timely manner, skipped or deferred dividend payments, early
redemption, limited voting rights, risks of subordination, or a lack of liquidity.
Interest rate risk
— The risk that the prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Interest rate changes are influenced by a number of factors, such as government policy, monetary
policy, inflation expectations, and the supply and demand of bonds. Bonds and other fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes. The Fund may be subject to a greater risk of rising
interest rates due to the current period of historically low interest rates. Infrastructure Assets can be highly leveraged. As such, movements in the level of interest rates may affect the returns from these assets more significantly than
other assets in some instances.
Prepayment
risk — The risk that the principal on a bond that is held by the Fund will be prepaid prior to maturity at a time when interest rates are lower than what that bond was paying. The Fund may then have to
reinvest that money at a lower interest rate.
Derivatives risk
— Derivatives contracts, such as futures, forward foreign currency contracts, options, and swaps, may involve additional expenses (such as the payment of premiums) and are subject to significant loss if a security, index, reference rate, or
other asset or market factor to which a derivatives contract is associated, moves in the opposite direction from what the portfolio manager anticipated. When used for hedging, the change in value of the derivatives instrument may also not
correlate specifically with the currency, rate, or other risk being hedged, in which case a fund may not realize the intended benefits. Derivatives contracts are also subject to the risk that the counterparty may fail to perform its obligations
under the contract due to, among other reasons, financial difficulties (such as a bankruptcy or reorganization).
36
Leveraging
risk — The risk that certain Fund transactions using leveraging techniques may give rise to leverage, causing the Fund to be more volatile than if it had not been leveraged, which may result in increased
losses to the Fund. Leveraging techniques, such as borrowing, will pose certain risks for the Fund's common shareholders, including the possibility of higher volatility of both the NAV and market value of the Fund's shares. There can be no assurance
that the Fund would be able to realize a higher net return on its investment portfolio than the then current interest rate payable under the BNP Paribas Agreement. In such event, the Fund's leveraged capital structure would result in a lower yield
to the Fund's common shareholders than if the Fund were not leveraged. Accordingly, the effect of leverage in a declining market is likely to be a greater decline in the Fund's NAV per share than if the Fund were not leveraged, which may be
reflected in a greater decline in the market price of its shares.
Liquidity risk —
Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which the Fund has valued them.
Geographic focus risk
— The risk that local political and economic conditions could adversely affect the performance of the Fund to the extent it invests a substantial amount of assets in securities of issuers located in a single
country or a limited number of countries.
Investment companies risk — The risks of investing in other investment companies typically reflect the risks of the types of instruments in which the investment company invests. The Fund will bear its proportionate share of the fees and
expenses of an investment in an investment company. As a result, the Fund’s expenses may be higher and performance may be lower.
Inflation risk —
Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Fund’s shares and distributions thereon
can decline. In addition, during any periods of rising inflation, interest and dividend rates of any leverage instruments a fund may have issued would likely increase, which would tend to further reduce returns to shareholders.
High yield (junk bond) risk — The risk that high yield securities, commonly known as “junk bonds,” are subject to reduced creditworthiness of issuers, increased risk of default, and a more limited and less liquid secondary
market. High yield securities may also be subject to greater price volatility and risk of loss of income and principal than are higher-rated securities. High yield bonds are sometimes issued by municipalities that have less financial strength and
therefore have less ability to make projected debt payments on the bonds.
Hybrid securities risk
— The Fund may invest in preferred stock and hybrid securities, which may have special risks. Preferred and hybrid securities may include provisions that permit the issuer, at its discretion, to defer distributions for a stated period without
any adverse consequences to the issuer. Some preferred and hybrid securities are noncumulative, meaning that the dividends do not accumulate and need not ever be paid. A portion of the Fund’s assets may include investments in noncumulative
preferred or hybrid securities, under which the issuer does not have an obligation to make up any arrears to its investors. Preferred and hybrid securities may be substantially less liquid than many other securities, such as common stocks or US
government securities. Generally, preferred and hybrid security holders (such as the Fund) have no voting rights with respect to the issuing company unless preferred dividends have been
37
Additional information
(Unaudited)
Macquarie Global Infrastructure Total Return Fund
Inc.
in arrears for a specified number of periods, at which time the
security holders generally may select a number of directors to the issuer’s board. Generally, once all the arrears have been paid, the security holders no longer have voting rights. In certain varying circumstances, an issuer of preferred or
hybrid securities may redeem the securities prior to a specified date. For instance, for certain types of preferred or hybrid securities, a redemption may be triggered by a change in federal income tax or securities laws. A redemption by the issuer
may negatively impact the return of the security held by the Fund.
Performance risk
— Performance risk broadly refers to the potential for changes in share prices to result in a loss in the value of your investment in the Fund. The Fund primarily invests in companies that are listed on
a share market and as a result is exposed to movements in their share prices.
Natural disaster and epidemic risk — Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have
been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value
of the Fund’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in
other countries. These disruptions could prevent the Fund from executing advantageous investment decisions in a timely manner and could negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a
significant adverse impact on the value and risk profile of the Fund.
IBOR risk — The
risk that potential changes related to the use of the London Interbank Offered Rate (LIBOR) or similar interbank offered rates (“IBORs,” such as the Euro Overnight Index Average (EONIA)) could have adverse impacts on financial
instruments that reference LIBOR or a similar rate. While some instruments may contemplate a scenario where LIBOR or a similar rate is no longer available by providing for an alternative rate setting methodology, not all instruments have such
fallback provisions and the effectiveness of replacement rates is uncertain. The abandonment of LIBOR and similar rates could affect the value and liquidity of instruments that reference such rates, especially those that do not have fallback
provisions. The use of alternative reference rate products may impact investment strategy performance.
38
Directors and
officers
May 31, 2022 (Unaudited)
Certain biographical and other information relating to
the Directors and Executive Officers of the Fund is set out below, including their year of birth, their principal occupations for at least the last five years, the length of time served, the total number of portfolios overseen in the complex of
funds advised by the Manager (DMC-Affiliated Advised Funds) and other public company directorships.
| Name,
Birth Year and Address1 of Director |
Position(s)
Held with the Fund |
Term
of Office and Length of Time Served2 |
Principal
Occupation(s) During Past Five Years |
Number
of DMC-Affiliated Advised Funds Overseen |
Other
Public Company Directorships |
| Biographical Information of the Non-Interested Directors of the Fund | |||||
| Gordon
A. Baird* Birth Year: 1968 |
Class I Director | Since July 2005 | Mr. Baird is the President and Chief Executive Officer of Nexos Technologies Inc. from 2019 to present. Mr. Baird is also a Partner for Orbit Financial Holdings LP from July 2017 to present. Mr. Baird is also the founder and Managing Partner of G. A. Baird Partners & Co from 2015 to present. Mr. Baird was the Chief Executive Officer of Independence Bancshares, Inc. from 2013 to 2015 and an Operating Advisor to Thomas H. Lee Partners L.P. in 2011 and 2012. From 2003 to 2011, Mr. Baird was Chief Executive Officer of Paramax Capital Partners LLC. Prior to 2003, Mr. Baird was a Director at Citigroup Global Markets, Inc., an investment analyst at State Street Bank and Trust Company and real estate analyst at John Hancock Real Estate Finance Inc. | 1 | None |
39
Directors and
officers
| Name,
Birth Year and Address1 of Director |
Position(s)
Held with the Fund |
Term
of Office and Length of Time Served2 |
Principal
Occupation(s) During Past Five Years |
Number
of DMC-Affiliated Advised Funds Overseen |
Other
Public Company Directorships |
| Thomas
W. Hunersen* Birth Year: 1958 |
Class II Director | Since July 2005 | Mr. Hunersen is the Principal of CKW Ventures LLC (since 2013). Prior to 2013, Executive Vice President/Global Head of Energy & Utilities, National Australia Bank Limited, New York, NY; Group Executive, Corporate & Institutional Recovery, Irish Bank Resolution Corporation, Dublin, Ireland; Group Executive, Bank of Ireland, Greenwich, CT; Chief Executive Officer, Slingshot GT Incorporated, Boston, MA; Assistant Vice President, Mellon Bank Corporation, Pittsburgh, PA. | 1 | None |
| Chris
LaVictorie Mahai* Birth Year: 1955 |
Class III Director | Since July 2005 | Ms. Mahai is Managing Partner of clavm, LLC, a cross-industry strategic consultancy. She served as President of Aveus, a division of Medecision and Executive Vice President of Medecision, Inc. from May 2018 to December 2021. Prior to that she was Founder, Owner and Managing Partner of Aveus LLC from 1999 to May 2018. | 1 | None |
40
| Name,
Birth Year and Address1 of Director |
Position(s)
Held with the Fund |
Term
of Office and Length of Time Served2 |
Principal
Occupation(s) During Past Five Years |
Number
of DMC-Affiliated Advised Funds Overseen |
Other
Public Company Directorships |
| Biographical Information of the Interested Directors of the Fund | |||||
| John
C. Leonard Birth Year: 1960 |
Class III Director | Since February 2020 | Mr. Leonard has been Executive Director and Global Head of Equities of Macquarie Asset Management since March 2017. Previously, he was Head of Equities and Group Managing Director of UBS Asset Management from 2008 to 2016. | 1 | None |
41
Directors and
officers
| Name,
Birth Year and Address1 of Officer |
Position(s)
Held with Fund(s) |
Term
of Office and Length of Time Served3 |
Principal Occupation(s) During the Past Five Years | ||
| Biographical Information of the Officers of the Fund | |||||
| John
C. Leonard Birth Year: 1960 |
Chief
Executive Officer and President |
Since February 2020 | Mr. Leonard has been Executive Director and Global Head of Equities of Macquarie Asset Management since March 2017. Previously, he was Head of Equities and Group Managing Director of UBS Asset Management from 2008 to 2016. | ||
| William
Speacht Birth Year: 1970 |
Chief Compliance Officer | Since April 2021 | Mr. Speacht is a Managing Director, US Compliance for Macquarie Asset Management. He has served in various capacities at different times at Macquarie Asset Management since rejoining in 2016. He rejoined Macquarie Asset Management in September 2016 from Aberdeen Asset Management. Previously, he served in various capacities at different times at Macquarie Asset Management from 1997 to 2006. | ||
42
| Name,
Birth Year and Address1 of Officer |
Position(s)
Held with Fund(s) |
Term
of Office and Length of Time Served3 |
Principal Occupation(s) During the Past Five Years | ||
| Emilia
P. Wang, Esq. Birth Year: 1974 |
Chief Legal Officer and Secretary | Since April 2021 | Ms. Wang is a Managing Director, Legal for Macquarie Asset Management. She has served in various capacities at different times in the legal department at Macquarie Asset Management since 2007. | ||
| Daniel
V. Geatens4 Birth Year: 1972 |
Chief
Financial Officer and Treasurer |
Since November 2017 | Mr. Geatens is Managing Director, Head of US Fund Administration for Macquarie Asset Management. Mr. Geatens has served in various capacities at different times at Macquarie Asset Management since 1997. |
1Each Director may be contacted by writing to the Director c/o Macquarie Global Infrastructure Total Return Fund Inc., 125 West 55th
Street Level 9, New York, NY 10019.
2Each Director’s term of office extends until the next stockholder meeting for the purpose of electing Directors in the relevant
class and until the election and qualification of a successor, or until such Director dies, resigns or is removed as provided in the governing documents of the Fund.
* Member of Audit Committee
3Each officer serves an indefinite term.
4Mr. Geatens also serves as the Chief Financial Officer for the Optimum Fund Trust and Treasurer for the Delaware Funds by Macquarie®, which share the same investment manager.
43
Privacy practices notice
We are committed
to protecting the privacy of our potential, current, and former customers. To provide the products and services you request, we must collect personal information about you. We do not sell your personal information to
third parties. We collect your personal information and share it with third parties as necessary to provide you with the products or services you request and to administer your business with us. This notice describes our current privacy
practices. While your relationship with us continues, we will update and send our privacy practices notice as required by law. We are committed to continuing to protect your personal information even after that relationship ends. You do not need to take any action because of this notice.
i
This page is not part of the semiannual report.
Contact information
866 587-4518
Macquarie Global Infrastructure
Total Return Fund Inc.
125 West 55th Street
New York, NY 10019
macquarieim.com/mgu
Total Return Fund Inc.
125 West 55th Street
New York, NY 10019
macquarieim.com/mgu
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
| (b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
| Period | (a) Total Number of Shares (or |
(b) Average Price Paid per Share (or Unit) |
(c) Total Number of Shares (or Units) Purchased as Part of Publicly or Programs |
(d) Maximum Dollar Value)
of | ||||
| Month #1 (12/1/2021- 12/31/2021)
|
0 | - | 0 | 12,373,293 | ||||
| Month #2 (1/1/2022- 1/31/2022)
|
0 | - | 0 | 12,373,293 | ||||
| Month #3 (2/1/2022- 2/28/2022)
|
0 | - | 0 | 12,373,293 | ||||
| Month #4 (3/1/2022- 3/31/2022)
|
20,000 | $23.89 | 0 | 12,353,293 | ||||
| Month #5 (4/1/2022- 4/30/2022)
|
20,000 | $25.23 | 0 | 12,333,293 | ||||
| Month #6 (5/1/2022- 5/31/2022)
|
30,000 | $25.24 | 0 | 12,303,293 | ||||
| Total
|
70,000 | $24.66 | 0 | 12,303,293 |
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
| (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”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (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 (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
| Not applicable. |
Item 13. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) |
Macquarie Global Infrastructure Total Return Fund Inc. |
| By (Signature and Title)* |
/s/ John C. Leonard | |
| John C. Leonard | ||
| Chief Executive Officer/Principal Executive Officer |
| Date |
August 5, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* |
/s/ John C. Leonard | |
| John C. Leonard | ||
| Chief Executive Officer/Principal Executive Officer |
| Date |
August 5, 2022 |
| By (Signature and Title)* |
/s/ Daniel V. Geatens | |
| Daniel V. Geatens | ||
| Treasurer, Chief Financial Officer/Principal Financial Officer |
| Date |
August 5, 2022 |
* Print the name and title of each signing officer under his or her signature.