W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection
of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
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.
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.
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.
I, James M. Dykas, certify that:
I, Donald P. Swade, certify that::
I, James M. Dykas, President and Chief Executive Officer
of Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (the “Registrant”), certify that:
I, Donald P. Swade, Treasurer, Chief Financial Officer
and Chief Accounting Officer of Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (the “Registrant”),
certify that:
N-2
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6 Months Ended |
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May 31, 2023
$ / shares
shares
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| Cover [Abstract] |
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| Entity Central Index Key |
0001276469
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| Amendment Flag |
false
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| Entity Inv Company Type |
N-2
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| Document Type |
N-CSRS
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| Entity Registrant Name |
Macquarie/First Trust Global Infrastructure/Util
Div & Inc Fund
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| General Description of Registrant [Abstract] |
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| Investment Objectives and Practices [Text Block] |
The
Fund seeks to provide a high level of current return consisting of dividends, interest and other similar income while attempting to preserve
capital. The Fund seeks to achieve its investment objective by investing predominantly in the securities of companies that are involved
in the management, ownership, and/or operation of infrastructure and utilities assets, and are expected to offer reasonably predictable
income and attractive yields. The Fund also invests in senior secured loans generally considered to be high-yield securities. There can
be no assurance that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors.
|
| Risk Factors [Table Text Block] |
Principal
Risks
The
Fund is a closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund
is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance
that the Fund will achieve its investment objective. The following discussion summarizes the principal risks associated with investing
in the Fund, which includes the risk that you could lose some or all of your investment in the Fund. The Fund is subject to the informational
requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance therewith, files reports,
proxy statements and other information that is available for review.
Canada
Risk. The Fund invests in securities of Canadian issuers and is therefore subject to certain risks specifically
associated with investments in the securities of Canadian issuers. The Canadian economy is heavily dependent on the demand for natural
resources and agricultural products. Canada is a major producer of commodities such as forest products, metals, agricultural products,
and energy related products like oil, gas, and hydroelectricity. Accordingly, a change in the supply and demand of these resources, both
domestically and internationally, can have a significant effect on Canadian market performance. Canada is a top producer of zinc and uranium
and a global source of many other natural resources, such as gold, nickel, aluminum, and lead. Conditions that weaken demand for such
products worldwide could have a negative impact on the Canadian economy as a whole. Changes to the U.S. economy may significantly
affect the Canadian economy because the U.S. is Canada’s largest trading partner and foreign investor. These and other factors could
have a negative impact on the Fund and its investments in Canada.
Credit
Agency Risk. Credit ratings are determined by credit rating agencies and are only the opinions of such
entities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity
of securities. Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely
affect the credit ratings of securities held by the Fund or such credit agency’s ability to evaluate creditworthiness and, as a
result, may adversely affect those securities’ perceived or actual credit risk.
Credit
and Below-Investment Grade Securities Risk. Credit risk is the risk that the issuer or other obligated
party of a debt security in the Fund’s portfolio will fail to pay, or it is perceived that it will fail to pay, dividends and/or
interest or repay principal, when due. Below-investment grade instruments are commonly referred to as high-yield securities or “junk”
bonds and are considered speculative with respect to the issuer’s capacity to pay dividends or interest and repay principal and
are more susceptible to default or decline in market value than investment grade securities due to adverse economic and business developments.
High-yield securities are often unsecured and subordinated to other creditors of the issuer. The market values for high-yield securities
tend to be very volatile, and these securities are generally less liquid than investment grade securities. For these reasons, an investment
in the Fund is subject to the following specific risks: (i) increased price sensitivity to changing interest rates and to a deteriorating
economic environment; (ii) greater risk of loss due to default or declining credit quality; (iii) adverse company specific events more
likely to render the issuer
unable
to make dividend, interest and/or principal payments; (iv) negative perception of the high-yield market which may depress the price and
liquidity of high-yield securities; (v) volatility; and (vi) liquidity.
Cyber
Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security.
A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information,
suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage,
additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized
access to the Fund’s digital information systems through “hacking” or malicious software coding, but may also result
from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition,
cyber security breaches of the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, sub-advisor,
or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches.
The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee
that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third party
service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future.
Equity
Securities Risk. The value of the Fund’s shares will fluctuate with changes in the value of the
equity securities in which the Fund invests. Prices of equity securities fluctuate for several reasons, including changes in investors’
perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility,
or when political or economic events affecting the issuers occur. Common stock prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended
periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company,
industry or sector of the market.
Illiquid
Securities Risk. The Fund may invest in securities that are considered to be illiquid securities. Illiquid
securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market
price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that
the Fund pays for or recovers upon the sale of such securities. Illiquid securities are also more difficult to value, especially in challenging
markets.
Although
the resale or secondary market for senior loans is growing, it is currently limited. There is no organized exchange or board of trade
on which senior loans are traded. Instead, the secondary market for senior loans is an unregulated inter-dealer or inter-bank resale market.
In addition, the senior loans in which the Fund invests may require the consent of the borrower and/or agent prior to the settlement of
the sale or assignment. These consent requirements can delay or impede the Fund’s ability to settle the sale of senior loans. Depending
on market conditions, the Fund may have difficulty disposing its senior loans, which may adversely impact its ability to obtain cash to
repay debt, to pay dividends, to pay expenses or to take advantage of new investment opportunities.
Inflation
Risk. Certain of the Fund’s investments are subject to 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 present value of the Fund’s assets and distributions may decline. This risk is more prevalent with respect
to debt securities. Inflation creates uncertainty over the future real value (after inflation) of an investment. Inflation rates
may change frequently and drastically as a result of various factors, including unexpected shifts in the domestic or global economy, and
the Fund’s investments may not keep pace with inflation, which may result in losses to Fund investors.
Infrastructure
and Industry Concentration Risk. Given the Fund’s concentration in the infrastructure industry,
the Fund is more susceptible to adverse economic or regulatory occurrences affecting that industry than an investment company that is
not concentrated in a single industry. Infrastructure issuers, including utilities and companies involved in infrastructure projects,
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, increased regulation and other factors.
In
addition, infrastructure assets can have a substantial environmental impact. Ordinary operation or an accident with respect to such assets
could cause major environmental damage which could cause the owner of such assets significant financial distress. Community and environmental
groups may protest about the development or operation of infrastructure assets, and these protests may induce government action to the
detriment of the owner of the infrastructure asset.
Interest
Rate Risk. Interest rate risk is the risk that securities will decline in value because of changes
in market interest rates. The yield on the Fund’s common shares will tend to rise or fall as market interest rates rise and fall,
as senior loans pay interest at rates
which
float in response to changes in market rates. Changes in prevailing interest rates can be expected to cause some fluctuation in the Fund’s
net asset value. Similarly, a sudden and significant increase in market interest rates may cause a decline in the Fund’s net asset
value.
Leverage
Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains
from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares
will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including:
(i) the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without
leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result
in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater
decline in the net asset value of the common shares than if the Fund was not leveraged, which may result in a greater decline in the market
price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor
and by the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.
LIBOR
Risk. Many financial instruments use or may use a floating rate based upon the London Interbank Offered
Rate (“LIBOR”). The United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates LIBOR, intends
to cease making LIBOR available as a reference rate over a phase-out period that began in early 2022. However, subsequent announcements
by the FCA, the LIBOR administrators, and other regulators indicate that it is possible that the most widely used LIBOR rates may continue
until mid-2023. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain Fund investments and may
result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition
away from LIBOR on the Fund or on certain instruments in which the Fund invests can be difficult to ascertain, and they may vary depending
on a variety of factors. In the United States, it is anticipated that in many instances the Secured Overnight Financing Rate (“SOFR”)
will replace LIBOR as the reference rate for many floating rate instruments. There is no assurance that the composition or characteristics
of SOFR, or any alternative reference rate, will be similar to or produce the same value or economic equivalence as LIBOR or that instruments
using an alternative rate will have the same volume or liquidity. As a result, the transition process might lead to increased volatility
and reduced liquidity in markets that currently rely on LIBOR to determine interest rates; a reduction in the value of some LIBOR-based
investments; increased difficulty in borrowing or refinancing and diminished effectiveness of any applicable hedging strategies against
instruments whose terms currently include LIBOR; and/ or costs incurred in connection with temporary borrowings and closing out positions
and entering into new agreements. Any such effects (as well as other unforeseen effects) of the transition away from LIBOR and the adoption
of alternative reference rates could result in losses to the Fund.
Management
Risk and Reliance on Key Personnel. The implementation of the Fund’s investment strategy depends
upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and experience
and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have
a negative impact on the Fund.
Market
Discount from Net Asset Value. Shares of closed-end investment companies such as the Fund frequently
trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset
value.
Market
Risk. Securities held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations
caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates
and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of
the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism,
spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on the
Fund and its investments. For example, the coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments,
including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines or similar restrictions,
had negative impacts, and in many cases severe impacts, on markets worldwide. While the development of vaccines has slowed the spread
of the virus and allowed for the resumption of reasonably normal business activity in the United States, many countries continue to impose
lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging
variants of the disease. Also, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market
disruptions and volatility across markets globally, including the United States. The hostilities and sanctions resulting from these hostilities
could have a significant impact on certain Fund investments as well as Fund performance. As the global pandemic and conflict in
Ukraine have illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than
others. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and
reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity.
These events also may adversely affect the prices and liquidity of the Fund’s portfolio securities or other instruments and could
result in disruptions in the trading markets. Any of such circumstances could have a materially negative
impact
on the value of the Fund’s shares and result in increased market volatility. During any such events, the Fund’s shares may
trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund’s shares may widen.
MLP
Risk. As a result of the Fund’s exposure to MLPs, a downturn in one or more industries within
the energy sector, material declines in energy-related commodity prices, adverse political, legislative or regulatory developments or
other events could have a larger impact on the Fund than on an investment company that does not invest in the group of industries that
are part of the energy sector. Certain risks inherent in investing in MLPs include: commodity pricing risk, commodity supply and demand
risk, lack of diversification of and reliance on MLP customers and suppliers risk, commodity depletion and exploration risk, energy sector
and energy utility industry regulatory risk, including risks associated with the prices and methodology of determining prices that energy
companies may charge for their products and services, interest rate risk, risk of lack of acquisition or reinvestment opportunities for
MLPs, risk of lacking of funding for MLPs, dependency on MLP affiliate risk, weather risk, catastrophe risk, terrorism and MLP market
disruption risk, and technology risk.
Certain
MLP securities may trade in relatively low volumes due to their smaller market capitalizations or other factors, which may cause them
to have a high degree of price volatility and illiquidity. The structures of MLPs create certain risks, including, for example, risks
related to the limited ability of investors to control an MLP and to vote on matters affecting the MLP, risks related to potential conflicts
of interest between an MLP and the MLP’s general partner, the risk that an MLP will generate insufficient cash flow to meet its
current operating requirements, the risk that an MLP will issue additional securities or engage in other transactions that will have the
effect of diluting the interests of existing investors, and risks related to the general partner’s right to require unit-holders
to sell their common units at an undesirable time or price.
Companies
that own interstate pipelines are subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to the tariff
rates that they may charge customers and may change policies to no longer permit such companies to include certain costs in their costs
of services. This may lower the tariff rates charged to customers which will in turn negatively affect performance.
Other
factors which may reduce the amount of cash an MLP has available to pay its debt and equity holders include increased operating costs,
maintenance capital expenditures, acquisition costs, expansion or construction costs and borrowing costs (including increased borrowing
costs as a result of additional collateral requirements as a result of ratings downgrades by credit agencies).
Non-U.S.
Securities and Currency Risk. Investing in non-U.S. securities involves certain risks not involved in
domestic investments, including, but not limited to: fluctuations in currency exchange rates; future foreign economic, financial, political
and social developments; different legal systems; the possible imposition of exchange controls or other foreign governmental laws or restrictions;
lower trading volume; withholding taxes; greater price volatility and illiquidity; different trading and settlement practices; less governmental
supervision; high and volatile rates of inflation; fluctuating interest rates; less publicly available information; and different accounting,
auditing and financial recordkeeping standards and requirements. Because the Fund may invest in securities denominated or quoted in non-U.S.
currencies, changes in the non-U.S. currency/United States dollar exchange rate may affect the value of the Fund’s securities and
the unrealized appreciation or depreciation of investments.
There
may be very limited regulatory oversight of certain non-U.S. banks or securities depositories that hold non-U.S. securities and non-U.S.
currency and the laws of certain countries may limit the ability to recover such assets if a non-U.S. bank or depository or their agents
go bankrupt. There may also be an increased risk of loss of portfolio securities.
Investing
in non-U.S. securities may also involve a greater risk for excessive trading due to “time-zone arbitrage.” If an event occurring
after the close of a non-U.S. market, but before the time the Fund computes its current net asset value, causes a change in the price
of the non-U.S. securities and such price is not reflected in the Fund’s current net asset value, investors may attempt to take
advantage of anticipated price movements in securities held by the Fund based on such pricing discrepancies.
Operational
Risk. The Fund is subject to risks arising from various operational factors, including, but not limited
to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or systems failures. The Fund relies on third parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to
meet its investment objective. Although the Fund and the Advisor seek to reduce these operational risks through controls and procedures,
there is no way to completely protect against such risks.
Portfolio
Turnover Risk. The Fund may engage in portfolio trading to accomplish its investment objective. The
investment policies of the Fund may lead to frequent changes in investments, particularly in periods of rapidly fluctuating interest or
currency exchange rates. There are no limits on the rate of portfolio turnover and investments may be sold without regard to length of
time held when the Fund’s investment strategy so dictates. A higher portfolio turnover rate results in correspondingly greater brokerage
commissions and other transactional expenses that are borne by the Fund. High portfolio turnover may result in the realization of net
short-term capital gains by the Fund which, when distributed to shareholders, will be taxable as ordinary income.
Potential
Conflicts of Interest Risk. First Trust, DIFA and the portfolio managers have interests which may conflict
with the interests of the Fund. In particular, First Trust and DIFA currently manage and may in the future manage and/or advise other
investment funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while
the Fund is using leverage, the amount of the fees paid to First Trust (and by First Trust to DIFA) for investment advisory and management
services are higher than if the Fund did not use leverage because the fees paid are calculated based on managed assets. Therefore, First
Trust and DIFA have a financial incentive to leverage the Fund.
Prepayment
Risk. Loans are subject to prepayment risk. Prepayment risk is the risk that a borrower repays principal
prior to the scheduled maturity date. The degree to which borrowers prepay loans, whether as a contractual requirement or at their election,
may be affected by general business conditions, interest rates, the financial condition of the borrower and competitive conditions among
loan investors, among others. As such, prepayments cannot be predicted with accuracy. Upon a prepayment, either in part or in full, the
actual outstanding debt on which the Fund derives interest income will be reduced. The Fund may not be able to reinvest the proceeds received
on terms as favorable as the prepaid loan.
Qualified
Dividend Income Tax Risk. There can be no assurance as to what portion of the distributions paid to
the Fund’s common shareholders will consist of tax-advantaged qualified dividend income. Certain distributions designated by the
Fund as derived from qualified dividend income will be taxed in the hands of non-corporate common shareholders at the rates applicable
to long-term capital gains, provided certain holding period and other requirements are satisfied by both the Fund and the common shareholders.
Additional requirements apply in determining whether distributions by foreign issuers should be regarded as qualified dividend income.
Certain investment strategies of the Fund will limit the Fund’s ability to meet these requirements and consequently will limit the
amount of qualified dividend income received and distributed by the Fund. A change in the favorable provisions of the federal tax laws
with respect to qualified dividends may result in a widespread reduction in announced dividends and may adversely impact the valuation
of the shares of dividend-paying companies.
Reinvestment
Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline if the
Fund invests the proceeds from matured, traded or called instruments at market interest rates that are below the Fund’s portfolio’s
current earnings rate. A decline in income could affect the common shares’ market price, level of distributions or the overall return
of the Fund.
Restricted
Securities Risk. The Fund may invest in restricted securities. The term “restricted securities”
refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual
restrictions on their resale. As a result, restricted securities may be more difficult to value and the Fund may have difficulty disposing
of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Fund, where it
has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the
decision is made to sell the security and the time the security is registered so that the Fund could sell it. Contractual restrictions
on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and acquirer of
the securities. The Fund would, in either case, bear market risks during that period.
Risks
Associated with an Investment in Initial Public Offerings. Securities purchased in initial public offerings
(“IPOs”) are often subject to the general risks associated with investments in companies with small market capitalizations,
and typically to a heightened degree. Securities issued in IPOs have no trading history, and information about the companies may be available
for very limited periods. In addition, the prices of securities sold in an IPO may be highly volatile. At any particular time or from
time to time, the Fund may not be able to invest in IPOs, or to invest to the extent desired, because, for example, only a small portion
(if any) of the securities being offered in an IPO may be available to the Fund. In addition, under certain market conditions, a relatively
small number of companies may issue securities in IPOs. The Fund’s investment performance during periods when it is unable to invest
significantly or at all in IPOs may be lower than during periods when it is able to do so. IPO securities may be volatile, and the Fund
cannot predict whether investments in IPOs will be successful.
Senior
Loan Risk. The Fund invests in senior loans and therefore is subject to the risks associated therewith.
Investments in senior loans are subject to the same risks as investments in other types of debt securities, including credit risk,
interest rate risk, liquidity risk and valuation risk (which may be heightened because of the limited public information available regarding
senior loans and because loan borrowers may be leveraged and tend to be more adversely affected by changes in market or economic conditions).
Further, no active trading market may exist for certain senior loans, which may impair the ability of the Fund to realize full value
in the event of the need to sell a senior loan and which may make it difficult to value senior loans. Senior loans may not be considered
“securities” and the Fund may not be entitled to rely on the anti-fraud protections of the federal securities laws.
In
the event a borrower fails to pay scheduled interest or principal payments on a senior loan held by the Fund, the Fund will experience
a reduction in its income and a decline in the value of the senior loan, which will likely reduce dividends and lead to a decline in the
net asset value of the Fund’s common shares. If the Fund acquires a senior loan from another lender, for example, by acquiring a
participation, the Fund may also be subject to credit risks with respect to that lender. Although senior loans may be secured
by
specific collateral, the value of the collateral may not equal the Fund’s investment when the senior loan is acquired or may decline
below the principal amount of the senior loan subsequent to the Fund’s investment. Also, to the extent that collateral consists
of stock of the borrower or its subsidiaries or affiliates, the Fund bears the risk that the stock may decline in value, be relatively
illiquid, and/or may lose all or substantially all of its value, causing the senior loan to be under collateralized. Therefore, the liquidation
of the collateral underlying a senior loan may not satisfy the issuer’s obligation to the Fund in the event of non-payment of scheduled
interest or principal, and the collateral may not be readily liquidated.
The
senior loan market has seen a significant increase in loans with weaker lender protections including, but not limited to, limited financial
maintenance covenants or, in some cases, no financial maintenance covenants (i.e., “covenant-lite loans”) that would typically
be included in a traditional loan agreement and general weakening of other restrictive covenants applicable to the borrower such as limitations
on incurrence of additional debt, restrictions on payments of junior debt or restrictions on dividends and distributions. Weaker lender
protections such as the absence of financial maintenance covenants in a loan agreement and the inclusion of “borrower-favorable”
terms may impact recovery values and/or trading levels of senior loans in the future. The absence of financial maintenance covenants
in a loan agreement generally means that the lender may not be able to declare a default if financial performance deteriorates. This
may hinder the Fund’s ability to reprice credit risk associated with a particular borrower and reduce the Fund’s ability to
restructure a problematic loan and mitigate potential loss. As a result, the Fund’s exposure to losses on investments in senior
loans may be increased, especially during a downturn in the credit cycle or changes in market or economic conditions.
Tax
Risk. Changes in tax laws or regulations, or interpretations thereof in the future, could adversely
affect the Fund or the MLPs, MLP-related entities and other energy sector and energy utility companies in which the Fund invests. A change
in current tax law, a change in the business of a given MLP, or a change in the types of income earned by a given MLP could result in
an MLP being treated as a corporation for United States federal income tax purposes, which would result in such MLP being required to
pay United States federal income tax on its taxable income. Recent events have caused some MLPs to be reclassified or restructured as
corporations. The classification of an MLP as a corporation for United States federal income tax purposes has the effect of reducing the
amount of cash available for distribution by the MLP and causing any such distributions received by the Fund to be taxed as dividend income
to the extent of the MLP’s current or accumulated earnings and profits.
A
reduction in the percentage of the income offset by tax deductions or an increase in sales of the Fund’s MLP holdings that result
in capital gains will reduce that portion of the Fund’s distribution from an MLP treated as a return of capital and increase that
portion treated as income, and may result in lower after-tax distributions to the Fund’s common shareholders. On the other hand,
to the extent a distribution received by the Fund from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in
the interests of the MLP may be reduced, which will result in an increase in the amount of income or gain or decrease in the amount of
loss that will be recognized by the Fund for tax purposes upon the sale of any such interests.
United
Kingdom Risk. The Fund is subject to certain risks specifically associated with investments in the securities
of United Kingdom issuers. Investments in issuers located in the United Kingdom may subject the Fund to regulatory, political, currency,
security, and economic risk specific to the United Kingdom. The United Kingdom has one of the largest economies in Europe, and the United
States, China and other European countries are substantial trading partners of the United Kingdom. As a result, the British economy may
be impacted by changes to the economic health of the United States, China and other European countries. The United Kingdom’s official
departure from the European Union (commonly referred to as “Brexit”) led to volatility in global financial markets, in particular
those of the United Kingdom and across Europe, and the weakening in political, regulatory, consumer, corporate and financial confidence
in the United Kingdom and Europe. Given the size and importance of the United Kingdom’s economy, uncertainty or unpredictability
about its legal, political and/or economic relationships with Europe has been, and may continue to be, a source of instability and could
lead to significant currency fluctuations and other adverse effects on international markets and international trade even under the post-Brexit
trade guidelines. The negative impact of Brexit on not only the United Kingdom and European economies, but the broader global economy,
could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely
significantly on Europe for their business activities and revenues. It is not currently possible to determine the extent of the impact
that Brexit may have on the Fund’s investments and this uncertainty could negatively impact current and future economic conditions
in the United Kingdom and other countries, which could negatively impact the value of the Fund’s investments.
Utilities
Risk. Utility companies include companies producing or providing gas, electricity or water. These companies
are subject to the risk of the imposition of rate caps, increased competition due to deregulation, the difficulty in obtaining an adequate
return on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable
to environmental considerations and the capital market’s ability to absorb utility debt. In addition, in many regions, including
the United States, the utility industry is experiencing increasing competitive pressures, primarily in wholesale markets, as a result
of consumer demand, technological advances, greater availability of natural gas with respect to electric utility companies and other
factors.
Taxes, government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation also
may negatively affect utility companies.
Valuation
Risk. The valuation of senior loans may carry more risk than that of common stock. Because the secondary
market for senior loans is limited, it may be difficult to value the loans held by the Fund. Market quotations may not be readily available
for some senior loans and valuation may require more research than for liquid securities. In addition, elements of judgment may play a
greater role in the valuation of senior loans than for securities with a secondary market, because there is less reliable objective data
available. These difficulties may lead to inaccurate asset pricing.
|
| Share Price |
$ 7.60
|
| NAV Per Share |
$ 8.95
|
| Capital Stock, Long-Term Debt, and Other Securities [Abstract] |
|
| Outstanding Security, Title [Text Block] |
Common Shares outstanding (unlimited number of Common Shares has been authorized)
|
| Outstanding Security, Held [Shares] | shares |
8,547,442
|
| Canada Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Canada
Risk. The Fund invests in securities of Canadian issuers and is therefore subject to certain risks specifically
associated with investments in the securities of Canadian issuers. The Canadian economy is heavily dependent on the demand for natural
resources and agricultural products. Canada is a major producer of commodities such as forest products, metals, agricultural products,
and energy related products like oil, gas, and hydroelectricity. Accordingly, a change in the supply and demand of these resources, both
domestically and internationally, can have a significant effect on Canadian market performance. Canada is a top producer of zinc and uranium
and a global source of many other natural resources, such as gold, nickel, aluminum, and lead. Conditions that weaken demand for such
products worldwide could have a negative impact on the Canadian economy as a whole. Changes to the U.S. economy may significantly
affect the Canadian economy because the U.S. is Canada’s largest trading partner and foreign investor. These and other factors could
have a negative impact on the Fund and its investments in Canada.
|
| Credit Agency Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Credit
Agency Risk. Credit ratings are determined by credit rating agencies and are only the opinions of such
entities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity
of securities. Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely
affect the credit ratings of securities held by the Fund or such credit agency’s ability to evaluate creditworthiness and, as a
result, may adversely affect those securities’ perceived or actual credit risk.
|
| Credit And Below Investment Grade Securities Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Credit
and Below-Investment Grade Securities Risk. Credit risk is the risk that the issuer or other obligated
party of a debt security in the Fund’s portfolio will fail to pay, or it is perceived that it will fail to pay, dividends and/or
interest or repay principal, when due. Below-investment grade instruments are commonly referred to as high-yield securities or “junk”
bonds and are considered speculative with respect to the issuer’s capacity to pay dividends or interest and repay principal and
are more susceptible to default or decline in market value than investment grade securities due to adverse economic and business developments.
High-yield securities are often unsecured and subordinated to other creditors of the issuer. The market values for high-yield securities
tend to be very volatile, and these securities are generally less liquid than investment grade securities. For these reasons, an investment
in the Fund is subject to the following specific risks: (i) increased price sensitivity to changing interest rates and to a deteriorating
economic environment; (ii) greater risk of loss due to default or declining credit quality; (iii) adverse company specific events more
likely to render the issuer
unable
to make dividend, interest and/or principal payments; (iv) negative perception of the high-yield market which may depress the price and
liquidity of high-yield securities; (v) volatility; and (vi) liquidity.
|
| Cyber Security Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Cyber
Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security.
A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information,
suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage,
additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized
access to the Fund’s digital information systems through “hacking” or malicious software coding, but may also result
from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition,
cyber security breaches of the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, sub-advisor,
or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches.
The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee
that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third party
service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future.
|
| Equity Securities Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Equity
Securities Risk. The value of the Fund’s shares will fluctuate with changes in the value of the
equity securities in which the Fund invests. Prices of equity securities fluctuate for several reasons, including changes in investors’
perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility,
or when political or economic events affecting the issuers occur. Common stock prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended
periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company,
industry or sector of the market.
|
| Illiquid Securities Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Illiquid
Securities Risk. The Fund may invest in securities that are considered to be illiquid securities. Illiquid
securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market
price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that
the Fund pays for or recovers upon the sale of such securities. Illiquid securities are also more difficult to value, especially in challenging
markets.
Although
the resale or secondary market for senior loans is growing, it is currently limited. There is no organized exchange or board of trade
on which senior loans are traded. Instead, the secondary market for senior loans is an unregulated inter-dealer or inter-bank resale market.
In addition, the senior loans in which the Fund invests may require the consent of the borrower and/or agent prior to the settlement of
the sale or assignment. These consent requirements can delay or impede the Fund’s ability to settle the sale of senior loans. Depending
on market conditions, the Fund may have difficulty disposing its senior loans, which may adversely impact its ability to obtain cash to
repay debt, to pay dividends, to pay expenses or to take advantage of new investment opportunities.
|
| Inflation Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Inflation
Risk. Certain of the Fund’s investments are subject to 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 present value of the Fund’s assets and distributions may decline. This risk is more prevalent with respect
to debt securities. Inflation creates uncertainty over the future real value (after inflation) of an investment. Inflation rates
may change frequently and drastically as a result of various factors, including unexpected shifts in the domestic or global economy, and
the Fund’s investments may not keep pace with inflation, which may result in losses to Fund investors.
|
| Infrastructure And Industry Concentration Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Infrastructure
and Industry Concentration Risk. Given the Fund’s concentration in the infrastructure industry,
the Fund is more susceptible to adverse economic or regulatory occurrences affecting that industry than an investment company that is
not concentrated in a single industry. Infrastructure issuers, including utilities and companies involved in infrastructure projects,
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, increased regulation and other factors.
In
addition, infrastructure assets can have a substantial environmental impact. Ordinary operation or an accident with respect to such assets
could cause major environmental damage which could cause the owner of such assets significant financial distress. Community and environmental
groups may protest about the development or operation of infrastructure assets, and these protests may induce government action to the
detriment of the owner of the infrastructure asset.
|
| Leverage Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Leverage
Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains
from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares
will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including:
(i) the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without
leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result
in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater
decline in the net asset value of the common shares than if the Fund was not leveraged, which may result in a greater decline in the market
price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor
and by the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.
|
| L I B O R Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
LIBOR
Risk. Many financial instruments use or may use a floating rate based upon the London Interbank Offered
Rate (“LIBOR”). The United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates LIBOR, intends
to cease making LIBOR available as a reference rate over a phase-out period that began in early 2022. However, subsequent announcements
by the FCA, the LIBOR administrators, and other regulators indicate that it is possible that the most widely used LIBOR rates may continue
until mid-2023. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain Fund investments and may
result in costs incurred in connection with closing out positions and entering into new trades. Any potential effects of the transition
away from LIBOR on the Fund or on certain instruments in which the Fund invests can be difficult to ascertain, and they may vary depending
on a variety of factors. In the United States, it is anticipated that in many instances the Secured Overnight Financing Rate (“SOFR”)
will replace LIBOR as the reference rate for many floating rate instruments. There is no assurance that the composition or characteristics
of SOFR, or any alternative reference rate, will be similar to or produce the same value or economic equivalence as LIBOR or that instruments
using an alternative rate will have the same volume or liquidity. As a result, the transition process might lead to increased volatility
and reduced liquidity in markets that currently rely on LIBOR to determine interest rates; a reduction in the value of some LIBOR-based
investments; increased difficulty in borrowing or refinancing and diminished effectiveness of any applicable hedging strategies against
instruments whose terms currently include LIBOR; and/ or costs incurred in connection with temporary borrowings and closing out positions
and entering into new agreements. Any such effects (as well as other unforeseen effects) of the transition away from LIBOR and the adoption
of alternative reference rates could result in losses to the Fund.
|
| Management Risk And Reliance On Key Personnel [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Management
Risk and Reliance on Key Personnel. The implementation of the Fund’s investment strategy depends
upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and experience
and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have
a negative impact on the Fund.
|
| Market Discount From Net Asset Value [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Market
Discount from Net Asset Value. Shares of closed-end investment companies such as the Fund frequently
trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset
value.
|
| Market Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Market
Risk. Securities held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations
caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates
and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of
the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism,
spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on the
Fund and its investments. For example, the coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments,
including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines or similar restrictions,
had negative impacts, and in many cases severe impacts, on markets worldwide. While the development of vaccines has slowed the spread
of the virus and allowed for the resumption of reasonably normal business activity in the United States, many countries continue to impose
lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging
variants of the disease. Also, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market
disruptions and volatility across markets globally, including the United States. The hostilities and sanctions resulting from these hostilities
could have a significant impact on certain Fund investments as well as Fund performance. As the global pandemic and conflict in
Ukraine have illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than
others. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and
reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity.
These events also may adversely affect the prices and liquidity of the Fund’s portfolio securities or other instruments and could
result in disruptions in the trading markets. Any of such circumstances could have a materially negative
impact
on the value of the Fund’s shares and result in increased market volatility. During any such events, the Fund’s shares may
trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund’s shares may widen.
|
| M L P Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
MLP
Risk. As a result of the Fund’s exposure to MLPs, a downturn in one or more industries within
the energy sector, material declines in energy-related commodity prices, adverse political, legislative or regulatory developments or
other events could have a larger impact on the Fund than on an investment company that does not invest in the group of industries that
are part of the energy sector. Certain risks inherent in investing in MLPs include: commodity pricing risk, commodity supply and demand
risk, lack of diversification of and reliance on MLP customers and suppliers risk, commodity depletion and exploration risk, energy sector
and energy utility industry regulatory risk, including risks associated with the prices and methodology of determining prices that energy
companies may charge for their products and services, interest rate risk, risk of lack of acquisition or reinvestment opportunities for
MLPs, risk of lacking of funding for MLPs, dependency on MLP affiliate risk, weather risk, catastrophe risk, terrorism and MLP market
disruption risk, and technology risk.
Certain
MLP securities may trade in relatively low volumes due to their smaller market capitalizations or other factors, which may cause them
to have a high degree of price volatility and illiquidity. The structures of MLPs create certain risks, including, for example, risks
related to the limited ability of investors to control an MLP and to vote on matters affecting the MLP, risks related to potential conflicts
of interest between an MLP and the MLP’s general partner, the risk that an MLP will generate insufficient cash flow to meet its
current operating requirements, the risk that an MLP will issue additional securities or engage in other transactions that will have the
effect of diluting the interests of existing investors, and risks related to the general partner’s right to require unit-holders
to sell their common units at an undesirable time or price.
Companies
that own interstate pipelines are subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to the tariff
rates that they may charge customers and may change policies to no longer permit such companies to include certain costs in their costs
of services. This may lower the tariff rates charged to customers which will in turn negatively affect performance.
Other
factors which may reduce the amount of cash an MLP has available to pay its debt and equity holders include increased operating costs,
maintenance capital expenditures, acquisition costs, expansion or construction costs and borrowing costs (including increased borrowing
costs as a result of additional collateral requirements as a result of ratings downgrades by credit agencies).
|
| Non U S Securities And Currency Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Non-U.S.
Securities and Currency Risk. Investing in non-U.S. securities involves certain risks not involved in
domestic investments, including, but not limited to: fluctuations in currency exchange rates; future foreign economic, financial, political
and social developments; different legal systems; the possible imposition of exchange controls or other foreign governmental laws or restrictions;
lower trading volume; withholding taxes; greater price volatility and illiquidity; different trading and settlement practices; less governmental
supervision; high and volatile rates of inflation; fluctuating interest rates; less publicly available information; and different accounting,
auditing and financial recordkeeping standards and requirements. Because the Fund may invest in securities denominated or quoted in non-U.S.
currencies, changes in the non-U.S. currency/United States dollar exchange rate may affect the value of the Fund’s securities and
the unrealized appreciation or depreciation of investments.
There
may be very limited regulatory oversight of certain non-U.S. banks or securities depositories that hold non-U.S. securities and non-U.S.
currency and the laws of certain countries may limit the ability to recover such assets if a non-U.S. bank or depository or their agents
go bankrupt. There may also be an increased risk of loss of portfolio securities.
Investing
in non-U.S. securities may also involve a greater risk for excessive trading due to “time-zone arbitrage.” If an event occurring
after the close of a non-U.S. market, but before the time the Fund computes its current net asset value, causes a change in the price
of the non-U.S. securities and such price is not reflected in the Fund’s current net asset value, investors may attempt to take
advantage of anticipated price movements in securities held by the Fund based on such pricing discrepancies.
|
| Operational Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Operational
Risk. The Fund is subject to risks arising from various operational factors, including, but not limited
to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or systems failures. The Fund relies on third parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to
meet its investment objective. Although the Fund and the Advisor seek to reduce these operational risks through controls and procedures,
there is no way to completely protect against such risks.
|
| Portfolio Turnover Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Portfolio
Turnover Risk. The Fund may engage in portfolio trading to accomplish its investment objective. The
investment policies of the Fund may lead to frequent changes in investments, particularly in periods of rapidly fluctuating interest or
currency exchange rates. There are no limits on the rate of portfolio turnover and investments may be sold without regard to length of
time held when the Fund’s investment strategy so dictates. A higher portfolio turnover rate results in correspondingly greater brokerage
commissions and other transactional expenses that are borne by the Fund. High portfolio turnover may result in the realization of net
short-term capital gains by the Fund which, when distributed to shareholders, will be taxable as ordinary income.
|
| Potential Conflicts Of Interest Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Potential
Conflicts of Interest Risk. First Trust, DIFA and the portfolio managers have interests which may conflict
with the interests of the Fund. In particular, First Trust and DIFA currently manage and may in the future manage and/or advise other
investment funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while
the Fund is using leverage, the amount of the fees paid to First Trust (and by First Trust to DIFA) for investment advisory and management
services are higher than if the Fund did not use leverage because the fees paid are calculated based on managed assets. Therefore, First
Trust and DIFA have a financial incentive to leverage the Fund.
|
| Prepayment Risks [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Prepayment
Risk. Loans are subject to prepayment risk. Prepayment risk is the risk that a borrower repays principal
prior to the scheduled maturity date. The degree to which borrowers prepay loans, whether as a contractual requirement or at their election,
may be affected by general business conditions, interest rates, the financial condition of the borrower and competitive conditions among
loan investors, among others. As such, prepayments cannot be predicted with accuracy. Upon a prepayment, either in part or in full, the
actual outstanding debt on which the Fund derives interest income will be reduced. The Fund may not be able to reinvest the proceeds received
on terms as favorable as the prepaid loan.
|
| Qualified Divident Income Tax Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Qualified
Dividend Income Tax Risk. There can be no assurance as to what portion of the distributions paid to
the Fund’s common shareholders will consist of tax-advantaged qualified dividend income. Certain distributions designated by the
Fund as derived from qualified dividend income will be taxed in the hands of non-corporate common shareholders at the rates applicable
to long-term capital gains, provided certain holding period and other requirements are satisfied by both the Fund and the common shareholders.
Additional requirements apply in determining whether distributions by foreign issuers should be regarded as qualified dividend income.
Certain investment strategies of the Fund will limit the Fund’s ability to meet these requirements and consequently will limit the
amount of qualified dividend income received and distributed by the Fund. A change in the favorable provisions of the federal tax laws
with respect to qualified dividends may result in a widespread reduction in announced dividends and may adversely impact the valuation
of the shares of dividend-paying companies.
|
| Reinvestment Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Reinvestment
Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline if the
Fund invests the proceeds from matured, traded or called instruments at market interest rates that are below the Fund’s portfolio’s
current earnings rate. A decline in income could affect the common shares’ market price, level of distributions or the overall return
of the Fund.
|
| Restricted Securities Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Restricted
Securities Risk. The Fund may invest in restricted securities. The term “restricted securities”
refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual
restrictions on their resale. As a result, restricted securities may be more difficult to value and the Fund may have difficulty disposing
of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Fund, where it
has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the
decision is made to sell the security and the time the security is registered so that the Fund could sell it. Contractual restrictions
on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and acquirer of
the securities. The Fund would, in either case, bear market risks during that period.
|
| Risks Associated With An Investment In Initial Public Offerings [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Risks
Associated with an Investment in Initial Public Offerings. Securities purchased in initial public offerings
(“IPOs”) are often subject to the general risks associated with investments in companies with small market capitalizations,
and typically to a heightened degree. Securities issued in IPOs have no trading history, and information about the companies may be available
for very limited periods. In addition, the prices of securities sold in an IPO may be highly volatile. At any particular time or from
time to time, the Fund may not be able to invest in IPOs, or to invest to the extent desired, because, for example, only a small portion
(if any) of the securities being offered in an IPO may be available to the Fund. In addition, under certain market conditions, a relatively
small number of companies may issue securities in IPOs. The Fund’s investment performance during periods when it is unable to invest
significantly or at all in IPOs may be lower than during periods when it is able to do so. IPO securities may be volatile, and the Fund
cannot predict whether investments in IPOs will be successful.
|
| Senior Loan Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Senior
Loan Risk. The Fund invests in senior loans and therefore is subject to the risks associated therewith.
Investments in senior loans are subject to the same risks as investments in other types of debt securities, including credit risk,
interest rate risk, liquidity risk and valuation risk (which may be heightened because of the limited public information available regarding
senior loans and because loan borrowers may be leveraged and tend to be more adversely affected by changes in market or economic conditions).
Further, no active trading market may exist for certain senior loans, which may impair the ability of the Fund to realize full value
in the event of the need to sell a senior loan and which may make it difficult to value senior loans. Senior loans may not be considered
“securities” and the Fund may not be entitled to rely on the anti-fraud protections of the federal securities laws.
In
the event a borrower fails to pay scheduled interest or principal payments on a senior loan held by the Fund, the Fund will experience
a reduction in its income and a decline in the value of the senior loan, which will likely reduce dividends and lead to a decline in the
net asset value of the Fund’s common shares. If the Fund acquires a senior loan from another lender, for example, by acquiring a
participation, the Fund may also be subject to credit risks with respect to that lender. Although senior loans may be secured
by
specific collateral, the value of the collateral may not equal the Fund’s investment when the senior loan is acquired or may decline
below the principal amount of the senior loan subsequent to the Fund’s investment. Also, to the extent that collateral consists
of stock of the borrower or its subsidiaries or affiliates, the Fund bears the risk that the stock may decline in value, be relatively
illiquid, and/or may lose all or substantially all of its value, causing the senior loan to be under collateralized. Therefore, the liquidation
of the collateral underlying a senior loan may not satisfy the issuer’s obligation to the Fund in the event of non-payment of scheduled
interest or principal, and the collateral may not be readily liquidated.
The
senior loan market has seen a significant increase in loans with weaker lender protections including, but not limited to, limited financial
maintenance covenants or, in some cases, no financial maintenance covenants (i.e., “covenant-lite loans”) that would typically
be included in a traditional loan agreement and general weakening of other restrictive covenants applicable to the borrower such as limitations
on incurrence of additional debt, restrictions on payments of junior debt or restrictions on dividends and distributions. Weaker lender
protections such as the absence of financial maintenance covenants in a loan agreement and the inclusion of “borrower-favorable”
terms may impact recovery values and/or trading levels of senior loans in the future. The absence of financial maintenance covenants
in a loan agreement generally means that the lender may not be able to declare a default if financial performance deteriorates. This
may hinder the Fund’s ability to reprice credit risk associated with a particular borrower and reduce the Fund’s ability to
restructure a problematic loan and mitigate potential loss. As a result, the Fund’s exposure to losses on investments in senior
loans may be increased, especially during a downturn in the credit cycle or changes in market or economic conditions.
|
| Tax Risk [Member] |
|
| General Description of Registrant [Abstract] |
|
| Risk [Text Block] |
Tax
Risk. Changes in tax laws or regulations, or interpretations thereof in the future, could adversely
affect the Fund or the MLPs, MLP-related entities and other energy sector and energy utility companies in which the Fund invests. A change
in current tax law, a change in the business of a given MLP, or a change in the types of income earned by a given MLP could result in
an MLP being treated as a corporation for United States federal income tax purposes, which would result in such MLP being required to
pay United States federal income tax on its taxable income. Recent events have caused some MLPs to be reclassified or restructured as
corporations. The classification of an MLP as a corporation for United States federal income tax purposes has the effect of reducing the
amount of cash available for distribution by the MLP and causing any such distributions received by the Fund to be taxed as dividend income
to the extent of the MLP’s current or accumulated earnings and profits.
A
reduction in the percentage of the income offset by tax deductions or an increase in sales of the Fund’s MLP holdings that result
in capital gains will reduce that portion of the Fund’s distribution from an MLP treated as a return of capital and increase that
portion treated as income, and may result in lower after-tax distributions to the Fund’s common shareholders. On the other hand,
to the extent a distribution received by the Fund from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in
the interests of the MLP may be reduced, which will result in an increase in the amount of income or gain or decrease in the amount of
loss that will be recognized by the Fund for tax purposes upon the sale of any such interests.
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| United Kingdom Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
United
Kingdom Risk. The Fund is subject to certain risks specifically associated with investments in the securities
of United Kingdom issuers. Investments in issuers located in the United Kingdom may subject the Fund to regulatory, political, currency,
security, and economic risk specific to the United Kingdom. The United Kingdom has one of the largest economies in Europe, and the United
States, China and other European countries are substantial trading partners of the United Kingdom. As a result, the British economy may
be impacted by changes to the economic health of the United States, China and other European countries. The United Kingdom’s official
departure from the European Union (commonly referred to as “Brexit”) led to volatility in global financial markets, in particular
those of the United Kingdom and across Europe, and the weakening in political, regulatory, consumer, corporate and financial confidence
in the United Kingdom and Europe. Given the size and importance of the United Kingdom’s economy, uncertainty or unpredictability
about its legal, political and/or economic relationships with Europe has been, and may continue to be, a source of instability and could
lead to significant currency fluctuations and other adverse effects on international markets and international trade even under the post-Brexit
trade guidelines. The negative impact of Brexit on not only the United Kingdom and European economies, but the broader global economy,
could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely
significantly on Europe for their business activities and revenues. It is not currently possible to determine the extent of the impact
that Brexit may have on the Fund’s investments and this uncertainty could negatively impact current and future economic conditions
in the United Kingdom and other countries, which could negatively impact the value of the Fund’s investments.
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| Utilities Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
Utilities
Risk. Utility companies include companies producing or providing gas, electricity or water. These companies
are subject to the risk of the imposition of rate caps, increased competition due to deregulation, the difficulty in obtaining an adequate
return on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable
to environmental considerations and the capital market’s ability to absorb utility debt. In addition, in many regions, including
the United States, the utility industry is experiencing increasing competitive pressures, primarily in wholesale markets, as a result
of consumer demand, technological advances, greater availability of natural gas with respect to electric utility companies and other
factors.
Taxes, government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation also
may negatively affect utility companies.
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| Valuation Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
Valuation
Risk. The valuation of senior loans may carry more risk than that of common stock. Because the secondary
market for senior loans is limited, it may be difficult to value the loans held by the Fund. Market quotations may not be readily available
for some senior loans and valuation may require more research than for liquid securities. In addition, elements of judgment may play a
greater role in the valuation of senior loans than for securities with a secondary market, because there is less reliable objective data
available. These difficulties may lead to inaccurate asset pricing.
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| Interest Rate Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
Interest
Rate Risk. Interest rate risk is the risk that securities will decline in value because of changes
in market interest rates. The yield on the Fund’s common shares will tend to rise or fall as market interest rates rise and fall,
as senior loans pay interest at rates
which
float in response to changes in market rates. Changes in prevailing interest rates can be expected to cause some fluctuation in the Fund’s
net asset value. Similarly, a sudden and significant increase in market interest rates may cause a decline in the Fund’s net asset
value.
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