UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-22040
Name of Fund: MLP & Strategic Equity Fund Inc. (MTP)
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Mitchell M. Cox, Chief Executive
Officer, MLP & Strategic Equity Fund Inc., 4 World Financial Center, 6th
Floor, New York, New York 10080.
Registrant's telephone number, including area code: (877) 449-4742
Date of fiscal year end: 10/31/2008
Date of reporting period: 11/01/2007 - 04/30/2008
Item 1 - Report to Stockholders
MLP & Strategic Equity Fund Inc.
--------------------------------------------------------------------------------
Semi-Annual Report
(Unaudited)
April 30, 2008
[LOGO] IQ INVESTMENT [LOGO] FAMCO
ADVISORS FIDUCIARY ASSET MANAGEMENT
MLP & Strategic Equity Fund Inc.
Directors and Officers
William J. Rainer, Director and Chairman of the Board
Paul Glasserman, Director and Chairman of the Audit Committee
Steven W. Kohlhagen, Director and Chairman of the Nominating and
Corporate Governance Committee
Laura S. Unger, Director
Mitchell M. Cox, President
James E. Hillman, Vice President and Treasurer
Colleen R. Rusch, Vice President and Secretary
Donald C. Burke, Vice President and Assistant Treasurer
Martin G. Byrne, Chief Legal Officer
Michael J. Fuccile, Chief Compliance Officer
Justin C. Ferri, Vice President
Michael M. Higuchi, Vice President
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
BNY Mellon Shareowner Services
480 Washington Boulevard
Jersey City, NJ 07310
2 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Fund Summary as of April 30, 2008 (Unaudited)
Fund Information
Symbol on New York Stock Exchange .............................. MTP
Initial Offering Date .......................................... June 29, 2007
Yield on Closing Market Price as of April 30, 2008 ($14.70)* ... 8.16%
Current Monthly Distribution per share of Common Stock** ....... $ .10
Current Annualized Distribution per share of Common Stock** .... $1.20
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
The table below summarizes the changes in the Fund's market price and net asset
value for the six-month period:
--------------------------------------------------------------------------------
4/30/08 (a) 10/31/07 Change+ High Low
--------------------------------------------------------------------------------
Market Price ........... $14.70 $16.24 (9.48%) $16.67 $13.07
Net Asset Value ........ $15.78 $18.06 (12.62%) $18.06 $14.43
--------------------------------------------------------------------------------
(a) For the six-month period, the Common Stock of the Fund had a total
investment return of (9.14%) based on net asset value per share and
(5.88%) based on market price per share, assuming reinvestment of
dividends. For the same period, the most commonly referenced index of
publicly traded MLP securities had a total investment return of (3.88%).
+ Does not include reinvestment of dividends.
Portfolio Information as of April 30, 2008
Percent of
Ten Largest MLP & MLP Affiliates Holdings Net Assets
--------------------------------------------------------------------------------
Kinder Morgan Management LLC ........................................ 9.4%
Enterprise Products Partners LP ..................................... 8.5
Plains All American Pipeline LP ..................................... 5.6
ONEOK Partners LP ................................................... 4.9
Energy Transfer Equity LP ........................................... 4.6
Boardwalk Pipeline Partners LP ...................................... 3.1
Energy Transfer Partners LP ......................................... 3.1
TEPPCO Partners LP .................................................. 3.0
Magellan Midstream Partners LP ...................................... 2.9
Nustar Energy LP .................................................... 2.7
--------------------------------------------------------------------------------
The Fund enters into variable prepaid forward contracts to seek to enhance the
return on its master limited partnership ("MLP") investments. One effect of
entering into the forward contracts is an increase in the Fund's total assets.
As a result, the Fund's MLP investments currently represent 20.2% of the Fund's
total assets. Due to the limited risk of the forward contracts, however, the
Fund derives its performance primarily from the MLP portfolio.
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 3
Schedule of Investments as of April 30, 2008 (Unaudited)
Master Limited Partnerships Units
Industry & MLP Affiliates Held Value
===============================================================================
Energy Equipment & Services -- 0.5%
Exterran Partners LP 39,000 $ 1,161,420
-------------------------------------------------------------------------------
Gas Utilities -- 9.3%
Amerigas Partners LP 124,180 4,183,624
Ferrellgas Partners LP 144,430 3,034,474
ONEOK Partners LP 193,650 11,241,383
Suburban Propane Partners LP 72,945 2,979,803
------------
21,439,284
-------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 91.5%
Alliance Resource Partners LP 82,935 3,439,314
Atlas Energy Resources LLC 129,000 5,181,930
Atlas Pipeline Holdings LP 116,065 3,630,513
Boardwalk Pipeline Partners LP 280,490 7,093,592
BreitBurn Energy Partners LP --
Common Units 63,070 1,285,367
Breitburn Energy Partners LP --
Common Units (b) 78,870 1,591,311
Buckeye Partners LP 100,670 4,966,051
Calumet Specialty Products Partners LP 66,120 915,762
Cheniere Energy Partners LP 377,312 4,659,803
Constellation Energy Partners LLC 31,925 552,941
Copano Energy LLC Class E Units (b) 11,804 427,644
Copano Energy LLC Common Units 107,375 3,981,465
Copano Energy LLC Common Units (b) 10,819 401,169
Crosstex Energy LP 102,790 3,350,954
DCP Midstream Partners LP 56,890 1,703,856
Duncan Energy Partners LP 52,890 1,036,115
EV Energy Partner LP 32,120 858,246
Eagle Rock Energy Partners LP 178,265 3,034,070
El Paso Pipeline Partners LP 200,000 4,660,000
Enbridge Energy Management LLC (d) 112,805 5,854,580
Enbridge Energy Partners LP 64,030 3,209,184
Encore Energy Partners LP 50,000 1,026,500
Energy Transfer Equity LP 304,457 10,452,009
Energy Transfer Partners LP 140,000 7,074,200
Enterprise Products Partners LP 623,830 19,482,211
Genesis Energy LP 66,685 1,283,019
Global Partners LP 25,900 524,734
Hiland Partners LP 22,805 1,125,883
Holly Energy Partners LP 39,095 1,581,002
Inergy LP 108,035 3,151,381
K-Sea Transportation Partners LP 22,570 829,222
Kinder Morgan Management LLC (d) 396,505 21,609,513
Legacy Reserves LP 54,370 1,177,654
Linn Energy LLC Common Units 239,987 5,258,115
Magellan Midstream Partners LP 162,340 6,603,991
MarkWest Energy Partners LP 88,030 3,142,671
Martin Midstream Partners LP 35,085 1,228,326
Natural Resource Partners LP 130,475 4,222,171
Nustar Energy LP 116,000 6,200,200
OSG America LP 60,000 840,000
Penn Virginia Resource Partners LP 97,215 2,669,524
Plains All American Pipeline LP 267,595 12,922,163
Quest Energy Partners LP 40,000 640,800
Regency Energy Partners LP 144,875 3,988,409
SemGroup Energy Partners LP 65,530 1,710,333
Spectra Energy Partners LP 168,710 4,109,776
Sunoco Logistics Partners LP 71,485 3,707,212
TC PipeLines LP 89,025 3,115,875
TEPPCO Partners LP 192,910 6,769,212
Targa Resources Partners LP 109,585 2,648,669
Teekay LNG Partners LP 78,665 2,249,032
Transmontaigne Partners LP 30,065 871,885
U.S. Shipping Partners LP 39,410 452,033
Vanguard Natural Resources LLC 25,000 403,500
Williams Partners LP 97,285 3,515,880
Williams Pipeline Partners LP 73,840 1,392,622
------------
209,813,594
-------------------------------------------------------------------------------
Total Master Limited Partnerships
& MLP Affiliates
(Cost -- $258,115,394) -- 101.3% 232,414,298
===============================================================================
===============================================================================
Shares
Common Stocks Held
===============================================================================
Aerospace & Defense -- 2.1%
Alliant Techsystems, Inc. (a) 17,121 1,882,967
Precision Castparts Corp. 24,087 2,831,668
------------
4,714,635
-------------------------------------------------------------------------------
Air Freight & Logistics -- 3.8%
FedEx Corp. 92,019 8,821,862
-------------------------------------------------------------------------------
Auto Components -- 0.9%
The Goodyear Tire & Rubber Co. (a) 23,050 617,279
TRW Automotive Holdings Corp. (a) 61,357 1,568,285
------------
2,185,564
-------------------------------------------------------------------------------
Automobiles -- 1.0%
Ford Motor Co. (a) 283,032 2,337,844
-------------------------------------------------------------------------------
Biotechnology -- 25.9%
Amgen, Inc. (a) 493,977 20,682,817
Genentech, Inc. (a) 457,467 31,199,249
Genzyme Corp. (a) 106,485 7,491,220
------------
59,373,286
-------------------------------------------------------------------------------
Building Products -- 0.1%
USG Corp. (a) 4,770 168,429
-------------------------------------------------------------------------------
Capital Markets -- 12.7%
E*Trade Financial Corp. (a) 693,225 2,759,035
Franklin Resources, Inc. 50,112 4,768,157
GFI Group, Inc. 117,008 1,374,844
The Goldman Sachs Group, Inc. 72,461 13,866,862
Lehman Brothers Holdings, Inc. 46,290 2,047,870
TD Ameritrade Holding Corp. (a) 236,269 4,276,469
------------
29,093,237
-------------------------------------------------------------------------------
Chemicals -- 5.0%
The Mosaic Co. (a) 84,861 10,396,321
OM Group, Inc. (a) 18,471 1,011,472
------------
11,407,793
-------------------------------------------------------------------------------
Commercial Services & Supplies -- 1.4%
Allied Waste Industries, Inc. (a) 3,117 38,526
Monster Worldwide, Inc. (a) 2,829 68,830
Stericycle, Inc. (a) 57,668 3,078,318
------------
3,185,674
-------------------------------------------------------------------------------
Communications Equipment -- 18.8%
Cisco Systems, Inc. (a) 1,434,382 36,777,554
Corning, Inc. 183,746 4,907,856
EchoStar Holding Corp. (a) 30,138 937,593
Motorola, Inc. 50,527 503,249
------------
43,126,252
4 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Schedule of Investments (continued)
Shares
Industry Common Stocks Held Value
===============================================================================
Computers & Peripherals -- 24.7%
Apple, Inc. (a) 195,553 $ 34,016,444
Dell, Inc. (a) 731,035 13,619,182
EMC Corp. (a) 310,361 4,779,559
NCR Corp. (a) 95,114 2,342,658
Teradata Corp. (a) 95,114 2,024,977
------------
56,782,820
-------------------------------------------------------------------------------
Construction & Engineering -- 3.2%
Foster Wheeler Ltd. (a) 16,452 1,047,828
Jacobs Engineering Group, Inc. (a) 63,177 5,454,070
The Shaw Group, Inc. (a) 15,717 776,734
------------
7,278,632
-------------------------------------------------------------------------------
Consumer Finance -- 8.8%
AmeriCredit Corp. (a) 159,174 2,222,069
Capital One Financial Corp. 337,388 17,881,564
------------
20,103,633
-------------------------------------------------------------------------------
Containers & Packaging -- 1.7%
Pactiv Corp. (a) 163,537 3,890,545
-------------------------------------------------------------------------------
Diversified Consumer Services -- 4.3%
Apollo Group, Inc. Class A (a) 193,079 9,827,721
-------------------------------------------------------------------------------
Diversified Financial Services -- 1.3%
Intercontinental Exchange, Inc. (a) 8,282 1,284,952
The NASDAQ Stock Market, Inc. (a) 46,948 1,711,255
------------
2,996,207
-------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.5%
Qwest Communications
International Inc. 244,948 1,263,932
-------------------------------------------------------------------------------
Electric Utilities -- 7.2%
Allegheny Energy, Inc. 162,654 8,750,785
Mirant Corp. (a) 188,670 7,756,224
------------
16,507,009
-------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 4.1%
Agilent Technologies, Inc. (a) 200,498 6,057,044
Arrow Electronics, Inc. (a) 14,957 406,980
Ingram Micro, Inc. Class A (a) 81,179 1,380,855
Mettler Toledo International, Inc. (a) 11,565 1,101,682
Vishay Intertechnology, Inc. (a) 49,954 472,065
------------
9,418,626
-------------------------------------------------------------------------------
Energy Equipment & Services -- 32.2%
Cameron International Corp. (a) 198,856 9,789,681
FMC Technologies, Inc. (a) 109,733 7,374,058
Nabors Industries Ltd. (a) 163,692 6,144,998
National Oilwell Varco, Inc. (a) 40,443 2,768,323
Noble Corp. 68,880 3,876,566
SEACOR Holdings, Inc. (a) 29,124 2,478,744
Schlumberger Ltd. 17,195 1,728,957
Transocean, Inc. (a) 126,860 18,706,776
Weatherford International Ltd. (a) 259,507 20,934,430
------------
73,802,533
-------------------------------------------------------------------------------
Food Products -- 3.1%
Dean Foods Co. (a) 114,029 2,650,034
Smithfield Foods, Inc. (a) 155,813 4,468,717
------------
7,118,751
-------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 5.8%
Hospira, Inc. (a) 28,909 1,189,605
St. Jude Medical, Inc. (a) 30,834 1,349,913
Zimmer Holdings, Inc. (a) 145,914 10,820,982
------------
13,360,500
-------------------------------------------------------------------------------
Health Care Providers & Services -- 35.5%
Aetna, Inc. 66,558 2,901,929
Cigna Corp. 165,162 7,054,069
Coventry Health Care, Inc. (a) 36,896 1,650,358
Express Scripts, Inc. (a) 159,868 11,193,957
Health Net, Inc. (a) 20,121 589,344
Humana, Inc. (a) 21,508 1,027,867
Laboratory Corp. of America
Holdings (a) 76,452 5,781,300
Lincare Holdings, Inc. (a) 7,205 175,370
Medco Health Solutions, Inc. (a) 243,128 12,044,561
UnitedHealth Group, Inc. 375,262 12,244,799
WellPoint, Inc. (a) 538,259 26,778,385
------------
81,441,939
-------------------------------------------------------------------------------
Health Care Technology -- 0.1%
Cerner Corp. (a) 3,329 154,033
-------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 4.2%
Jack in the Box, Inc. (a) 7,564 202,337
Las Vegas Sands Corp. (a) 17,406 1,326,685
MGM Mirage (a) 41,661 2,130,960
Starbucks Corp. (a) 372,072 6,038,729
------------
9,698,711
-------------------------------------------------------------------------------
Household Durables -- 1.0%
Mohawk Industries, Inc. (a) 28,788 2,193,358
-------------------------------------------------------------------------------
Household Products -- 0.9%
Energizer Holdings, Inc. (a) 26,319 2,080,780
-------------------------------------------------------------------------------
IT Services -- 2.0%
Cognizant Technology Solutions
Corp. (a) 23,920 771,420
Computer Sciences Corp. (a) 48,955 2,133,948
DST Systems, Inc. (a) 17,404 1,041,455
Fiserv, Inc. (a) 14,142 714,878
------------
4,661,701
-------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 10.1%
The AES Corp. (a) 777,967 13,505,507
NRG Energy, Inc. (a) 220,401 9,686,624
------------
23,192,131
-------------------------------------------------------------------------------
Insurance -- 10.3%
American International Group, Inc. 353,029 16,309,940
Arch Capital Group Ltd. (a) 49,769 3,516,180
Conseco, Inc. (a) 84,846 988,456
The Progressive Corp. 160,937 2,927,444
------------
23,742,020
-------------------------------------------------------------------------------
Internet Software & Services -- 11.6%
eBay, Inc. (a) 280,897 8,789,267
Google, Inc. Class A (a) 31,096 17,858,122
------------
26,647,389
-------------------------------------------------------------------------------
Life Sciences Tools & Services -- 1.9%
Thermo Fisher Scientific, Inc. (a) 76,065 4,401,882
-------------------------------------------------------------------------------
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 5
Schedule of Investments (continued)
Shares
Industry Common Stocks Held Value
===============================================================================
Machinery -- 3.0%
Danaher Corp. 71,743 $ 5,597,389
Terex Corp. (a) 19,505 1,359,108
------------
6,956,497
-------------------------------------------------------------------------------
Media -- 27.0%
Comcast Corp. Class A 1,084,807 22,292,784
The DIRECTV Group, Inc. (a) 376,189 9,269,297
DISH Network Corp. (a) 150,692 4,496,649
Liberty Media Corp. --
Entertainment Class A (a) 185,308 4,808,743
Liberty Media Holding Corp. --
Capital (a) 46,327 712,046
Walt Disney Co. 625,751 20,293,105
------------
61,872,624
-------------------------------------------------------------------------------
Metals & Mining -- 2.7%
Century Aluminum Co. (a) 16,077 1,113,975
Freeport-McMoRan Copper & Gold, Inc.
Class B 6,066 690,007
Nucor Corp. 20,564 1,552,582
United States Steel Corp. 17,984 2,768,637
------------
6,125,201
-------------------------------------------------------------------------------
Multiline Retail -- 11.1%
Dollar Tree, Inc. (a) 11,219 354,520
Kohl's Corp. (a) 430,974 21,053,080
Sears Holdings Corp. (a) 41,216 4,064,310
------------
25,471,910
-------------------------------------------------------------------------------
Office Electronics -- 2.2%
Xerox Corp. 369,038 5,155,461
-------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 3.3%
Forest Oil Corp. (a) 4,349 256,287
Newfield Exploration Co. (a) 120,284 7,308,456
------------
7,564,743
-------------------------------------------------------------------------------
Pharmaceuticals -- 2.3%
Forest Laboratories, Inc. (a) 151,514 5,259,051
-------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 0.9%
Lam Research Corp. (a) 48,851 1,995,075
-------------------------------------------------------------------------------
Software -- 19.0%
Adobe Systems, Inc. (a) 72,065 2,687,304
Autodesk, Inc. (a) 27,011 1,026,418
Cadence Design Systems, Inc. (a) 89,274 993,620
Electronic Arts, Inc. (a) 166,786 8,584,475
Intuit, Inc. (a) 44,799 1,208,229
Oracle Corp. (a) 1,396,672 29,120,611
------------
43,620,657
-------------------------------------------------------------------------------
Specialty Retail -- 8.4%
AutoNation, Inc. (a) 116,776 1,869,584
AutoZone, Inc. (a) 20,771 2,508,098
Bed Bath & Beyond, Inc. (a) 399,924 12,997,530
Office Depot, Inc. (a) 144,827 1,836,406
-------------------------------------------------------------------------------
19,211,618
-------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 0.3%
Coach, Inc. (a) 20,871 742,380
-------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.3%
American Tower Corp. Class A (a) 38,606 1,676,272
Crown Castle International Corp. (a) 59,172 2,298,832
Leap Wireless International, Inc. (a) 16,931 905,301
NII Holdings, Inc. (a) 6,287 287,567
------------
5,167,972
-------------------------------------------------------------------------------
Total Common Stocks
(Cost -- $841,582,858) -- 328.7% 754,122,618
===============================================================================
===============================================================================
Short-Term Securities
===============================================================================
SSgA Prime Money Market Fund,
2.897% (c) 1,499,196 1,499,196
-------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $1,499,196) -- 0.7% 1,499,196
===============================================================================
Total Investments
(Cost -- $1,101,197,448*) -- 430.7% 988,036,112
Liabilities in Excess of
Other Assets -- (330.7%) (758,629,462)
-------------
Net Assets -- 100.0% $ 229,406,650
=============
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ...................................... $ 1,101,197,448
===============
Gross unrealized appreciation ....................... $ 51,743,941
Gross unrealized depreciation ....................... (164,905,277)
---------------
Net unrealized depreciation ......................... $ (113,161,336)
===============
(a) Non-income producing security.
(b) Restricted securities as to resale, representing approximately 1.1% of net
assets, were as follows:
--------------------------------------------------------------------------
Acquisition Fair
Issue Date(s) Cost Value+
--------------------------------------------------------------------------
Breitburn Energy Partners LP --
Common Units 11/01/2007 $2,058,901 $1,591,311
Copano Energy LLC Class E Units 10/19/2007 375,013 427,644
Copano Energy LLC Common Units 10/19/2007 363,735 401,169
--------------------------------------------------------------------------
Total $2,797,649 $2,420,124
=======================
+ See Notes to Financial Statements, Note 1(a).
(c) Represents the current yield as of April 30, 2008.
(d) Represents a pay-in-kind security, which may pay dividends in additional
units.
6 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Schedule of Investments (concluded)
o For Fund portfolio compliance purposes, the Fund's industry
classifications refer to any one or more of the industry
sub-classifications used by one or more widely recognized market indexes
or ratings group indexes, and/or as defined by Fund management. This
definition may not apply for the purposes of this report, which may
combine industry sub-classifications for reporting ease. Industries are
shown as a percent of net assets.
o Variable prepaid forward contracts as of April 30, 2008 were as follows:
-----------------------------------------------------------------------------------------------------------------
Notional Valuation
Amount Issue (a) Counterparty Date Value
-----------------------------------------------------------------------------------------------------------------
$183,000,279 Basket of Securities Banc of America, NA 7/18/2008 $(155,699,274)
$ 50,001,141 Basket of Securities, Tranche 1 HSBC Bank USA, NA 7/18/2008 (42,676,145)
$ 50,001,141 Basket of Securities, Tranche 2 HSBC Bank USA, NA 7/19/2008 (42,676,145)
$ 50,001,141 Basket of Securities, Tranche 3 HSBC Bank USA, NA 7/20/2008 (42,676,145)
$ 50,001,141 Basket of Securities, Tranche 4 HSBC Bank USA, NA 7/23/2008 (42,676,145)
$ 50,001,141 Basket of Securities, Tranche 5 HSBC Bank USA, NA 7/24/2008 (42,676,145)
$ 44,000,000 Basket of Securities, Tranche 1 HSBC Bank USA, NA 7/29/2008 (40,584,784)
$ 44,000,000 Basket of Securities, Tranche 2 HSBC Bank USA, NA 7/30/2008 (40,584,784)
$ 44,000,000 Basket of Securities, Tranche 3 HSBC Bank USA, NA 7/31/2008 (40,584,784)
$ 44,000,000 Basket of Securities, Tranche 4 HSBC Bank USA, NA 8/01/2008 (40,584,784)
$ 44,000,000 Basket of Securities, Tranche 5 HSBC Bank USA, NA 8/04/2008 (40,584,784)
$ 40,064,922 Basket of Securities, Tranche 1 HSBC Bank USA, NA 8/07/2008 (37,439,388)
$ 40,064,922 Basket of Securities, Tranche 2 HSBC Bank USA, NA 8/08/2008 (37,439,388)
$ 40,064,922 Basket of Securities, Tranche 3 HSBC Bank USA, NA 8/11/2008 (37,439,388)
$ 40,064,922 Basket of Securities, Tranche 4 HSBC Bank USA, NA 8/12/2008 (37,439,388)
$ 40,064,922 Basket of Securities, Tranche 5 HSBC Bank USA, NA 8/13/2008 (37,439,388)
-----------------------------------------------------------------------------------------------------------------
Total (Proceeds -- $844,797,291) $(759,200,859)
=============
(a) Non-income producing securities.
See Notes to Financial Statements.
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 7
Statement of Assets, Liabilities and Capital
As of April 30, 2008 (Unaudited)
===================================================================================================================================
Assets
-----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (identified cost -- $1,101,197,448) $ 988,036,112
Cash ................................................................................ 3,000
Dividends receivable ................................................................ 1,301,786
Prepaid expenses .................................................................... 7,428
-------------
Total assets ........................................................................ 989,348,326
-------------
===================================================================================================================================
Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Variable prepaid forward contracts, at value (proceeds -- $844,797,291) ............. 759,200,859
Payables:
Dividends to shareholders ....................................................... $ 420,092
Investment adviser .............................................................. 227,000 647,092
------------
Accrued expenses and other liabilities .............................................. 93,725
-------------
Total liabilities ................................................................... 759,941,676
-------------
===================================================================================================================================
Net Assets
-----------------------------------------------------------------------------------------------------------------------------------
Net assets .......................................................................... $ 229,406,650
=============
===================================================================================================================================
Capital
-----------------------------------------------------------------------------------------------------------------------------------
Common Stock, par value $.001 per share, 100,000,000 shares authorized .............. $ 14,538
Paid-in capital in excess of par .................................................... 273,292,317
Accumulated distributions in excess of investment income -- net ..................... $ (9,092,015)
Accumulated realized capital losses -- net .......................................... (7,243,286)
Unrealized depreciation -- net ...................................................... (27,564,904)
------------
Total accumulated losses -- net ..................................................... (43,900,205)
-------------
Total Capital -- Equivalent to $15.78 per share based on 14,537,638 shares
of Common Stock outstanding (market price -- $14.70) .............................. $ 229,406,650
=============
See Notes to Financial Statements.
8 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Statement of Operations
For the Six Months Ended April 30, 2008 (Unaudited)
===================================================================================================================================
Investment Income
-----------------------------------------------------------------------------------------------------------------------------------
Dividends ....................................................................... $ 1,233,510
---------------
===================================================================================================================================
Expenses
-----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ........................................................ $ 1,314,629
Professional fees ............................................................... 64,352
Directors' fees and expenses .................................................... 32,960
Custodian fees .................................................................. 25,575
Transfer agent fees ............................................................. 22,743
Printing and shareholder reports ................................................ 20,936
Accounting services ............................................................. 18,623
Listing fees .................................................................... 13,153
Other ........................................................................... 17,320
-------------
Total expenses .................................................................. 1,530,291
---------------
Investment loss -- net .......................................................... (296,781)
---------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
-----------------------------------------------------------------------------------------------------------------------------------
Realized loss on investments -- net ............................................. (6,817,518)
Unrealized appreciation/depreciation on:
Investments -- net .......................................................... (140,252,309)
Variable prepaid forward contracts -- net ................................... 122,892,496 (17,359,813)
----------------------------------
Total realized and unrealized loss -- net ....................................... (24,177,331)
---------------
Net Decrease in Net Assets Resulting from Operations ............................ $ (24,474,112)
===============
See Notes to Financial Statements.
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 9
Statement of Changes in Net Assets
For the Six
Months Ended For the Period
April 30, June 29, 2007+
2008 to October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
====================================================================================================================================
Operations
------------------------------------------------------------------------------------------------------------------------------------
Investment income (loss) -- net ................................................. $ (296,781) $ 538,532
Realized loss -- net ............................................................ (6,817,518) (425,768)
Unrealized appreciation/depreciation -- net ..................................... (17,359,813) (10,205,091)
----------------------------------
Net decrease in net assets resulting from operations ............................ (24,474,112) (10,092,327)
----------------------------------
====================================================================================================================================
Dividends and Distributions to Shareholders
------------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................ (8,722,584)++ (611,182)
Tax return of capital ........................................................... -- (3,746,919)
----------------------------------
Net decrease in net assets resulting from dividends and distributions
to shareholders ............................................................... (8,722,584) (4,358,101)
----------------------------------
====================================================================================================================================
Common Stock Transactions
------------------------------------------------------------------------------------------------------------------------------------
Proceeds from issuance of Common Stock .......................................... -- 276,959,530
Value of shares issued to Common Stock shareholders in reinvestment
of dividends and distributions ................................................ -- 574,236
Offering costs resulting from issuance of Common Stock .......................... -- (580,000)
----------------------------------
Net increase in net assets resulting from Common Stock transactions ............. -- 276,953,766
==================================
====================================================================================================================================
Net Assets
------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ......................................... (33,196,696) 262,503,338
Beginning of period ............................................................. 262,603,346 100,008
----------------------------------
End of period* .................................................................. $ 229,406,650 $ 262,603,346
==================================
* Accumulated distributions in excess of investment income (loss) -- net ...... $ (9,092,015) $ (72,650)
==================================
+ Commencement of operations.
++ A portion of the dividends from net investment income may be deemed a tax
return of capital or net realized gain at fiscal year end.
See Notes to Financial Statements.
10 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Statement of Cash Flows
For the
Six Months
Ended April 30,
2008
(Unaudited)
====================================================================================================================================
Cash Provided by Operating Activities
------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations .................................................. $(24,474,112)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash
used for operating activities:
Decrease in receivables ........................................................................... 487,544
Decrease in prepaid expenses and other assets ..................................................... 68,981
Decrease in other liabilities ..................................................................... (74,270)
Realized and unrealized loss -- net ............................................................... 30,294,245
Proceeds from sales of long-term securities ....................................................... 24,511,220
Purchases of long-term securities -- net .......................................................... (23,314,321)
Net proceeds from sales of short-term investments ................................................. 1,267,547
------------
Cash provided by operating activities ................................................................. 8,766,834
------------
====================================================================================================================================
Cash Used for Financing Activities
------------------------------------------------------------------------------------------------------------------------------------
Receipts on offering cost reimbursement ............................................................... 109,593
Dividends paid to shareholders ........................................................................ (8,873,427)
------------
Cash used for financing activities .................................................................... (8,763,834)
------------
====================================================================================================================================
Cash
------------------------------------------------------------------------------------------------------------------------------------
Net increase in cash .................................................................................. 3,000
Cash at beginning of period ........................................................................... --
------------
Cash at end of period ................................................................................. $ 3,000
============
See Notes to Financial Statements.
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 11
Financial Highlights
For the Six
Months Ended For the Period
April 30, June 29, 2007+
The following per share data and ratios have been derived 2008 to October 31,
from information provided in the financial statements. (Unaudited) 2007
=================================================================================================================================
Per Share Operating Performance
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .......................................... $ 18.06 $ 19.10
--------------------------------
Investment income (loss) -- net*** ............................................ (.02) .04
Realized and unrealized loss -- net ........................................... (1.66) (.74)
--------------------------------
Total from investment operations .............................................. (1.68) (.70)
--------------------------------
Less dividends and distributions from:
Investment income -- net .................................................. (.60)++ (.03)
Tax return of capital ..................................................... -- (.27)
--------------------------------
Total dividends and distributions to Common Stock shareholders ................ (.60) (.30)
--------------------------------
Offering costs resulting from the issuance of Common Stock .................... -- (.04)
--------------------------------
Net asset value, end of period ................................................ $ 15.78 $ 18.06
--------------------------------
Market price per share, end of period ......................................... $ 14.70 $ 16.24
================================
=================================================================================================================================
Total Investment Return**
---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................................ (9.14%)+++ (3.77%)+++
================================
Based on market price per share ............................................... (5.88%)+++ (17.37%)+++
================================
=================================================================================================================================
Ratios to Average Net Assets
---------------------------------------------------------------------------------------------------------------------------------
Expenses ...................................................................... 1.30%* 1.35%*
================================
Investment income (loss) -- net ............................................... (.25%)* .62%*
================================
=================================================================================================================================
Supplemental Data
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ...................................... $ 229,407 $ 262,603
================================
Portfolio turnover ............................................................ 2% --@
================================
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
*** Based on average shares outstanding.
+ Commencement of operations.
++ A portion of the dividends from net investment income may be deemed a tax
return of capital or net realized gain at fiscal year end.
+++ Aggregate total investment return.
@ Amount is less than 1%.
See Notes to Financial Statements.
12 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
MLP & Strategic Equity Fund Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a diversified, closed-end management
investment company. The Fund pursues its investment objective by investing
substantially all of its net assets in publicly traded master limited
partnerships ("MLPs"). To enhance its returns, the Fund will enter into variable
prepaid forward contracts ("Forward Contracts") with terms of approximately one
year, to sell particular equity securities that the Fund will strategically
purchase with the proceeds of the Forward Contracts. The Fund's financial
statements are prepared in conformity with U.S. generally accepted accounting
principles, which may require the use of management accruals and estimates.
Actual results may differ from these estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of management,
necessary to present a fair statement of the results for the interim period. All
such adjustments are of a normal, recurring nature. The Fund determines and
makes available for publication the net asset value of its Common Stock on a
daily basis. The Fund's Common Stock shares are listed on the New York Stock
Exchange ("NYSE") under the symbol MTP. The following is a summary of
significant accounting policies followed by the Fund:
(a) Valuation of investments -- Portfolio securities that are held by the Fund
that are traded on stock exchanges or the NASDAQ Global Market are valued at the
last sale price or official close price on the exchange, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price for long positions, and at the last available asked
price for short positions. In cases where securities are traded on more than one
exchange, the securities are valued on the exchange designated as the primary
market by or under the authority of the Board of Directors of the Fund. Long
positions traded in the over-the-counter ("OTC") market, NASDAQ Capital Market
or Bulletin Board are valued at the last available bid price or yield equivalent
obtained from one or more dealers or pricing services approved by the Board of
Directors of the Fund. Short positions traded in the OTC market are valued at
the last available asked price. Portfolio securities that are traded both in the
OTC market and on an exchange are valued according to the broadest and most
representative market. Other investments are valued at market value.
Exchange traded options are valued at the mean price. Options traded in the OTC
market are valued at the last asked price (options written) or the last bid
price (options purchased). Swap agreements and variable prepaid forward
contracts are valued based upon quoted fair valuations received daily by the
Fund from a pricing service or counterparty. Financial futures contracts and
options thereon, which are traded on exchanges, are valued at their last sale
price as of the close of such exchanges. Valuation of short-term investment
vehicles is generally based on the net asset value of the underlying investment
vehicle or amortized cost.
The Fund may employ pricing services to provide certain securities prices for
the Fund. Securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Fund, including valuations furnished
by the pricing services retained by the Fund, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are reviewed
by the officers of the Fund under the general supervision of the Fund's Board of
Directors. Such valuations and procedures will be reviewed periodically by the
Board of Directors of the Fund.
Generally, trading in foreign securities, as well as money market instruments is
substantially completed each day at various times prior to the close of business
on the NYSE. The values of such securities used in computing the net asset value
of the Fund's shares are determined as of such times. Foreign currency exchange
rates will generally be determined as of the close of business on the NYSE.
Occasionally, events affecting the values of such securities and such exchange
rates may occur between the times at which they are determined and the close of
business on the NYSE that may not be reflected in the computation of the Fund's
net asset value. If events (for example, a company announcement, market
volatility or a natural disaster) occur during such periods that are expected to
materially affect the value of such securities, those securities will be valued
at their fair value as determined in good faith by the Fund's Board of Directors
or by the Investment Adviser using a pricing service and/or procedures approved
by the Fund's Board of Directors.
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 13
Notes to Financial Statements (continued)
(b) Master Limited Partnerships -- The Fund will purchase both domestic and
international MLPs. The Fund's investment in MLPs may include ownership of MLP
common units and MLP subordinated units. The Fund also may purchase MLP I-Shares
(together with the MLPs, the "MLP Entities"). MLP I-Shares are pay-in-kind
securities created as a means to facilitate institutional ownership of MLPs by
simplifying the tax and administrative implications of the MLP structure.
Generally, when an MLP pays its quarterly cash distribution to unitholders,
holders of I-Shares do not receive a cash distribution; rather, they receive a
dividend of additional I-Shares from the MLP of comparable value to the cash
distribution paid to each unitholder. The Fund may purchase interests in MLP
Entities on an exchange or may utilize non-public market transactions to obtain
its holdings, including but not limited to privately negotiated purchases of
securities from the issuers themselves, broker-dealers, or other qualified
institutional buyers.
(c) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into U.S. dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on investments.
The Fund may invest in foreign securities, which may involve a number of risk
factors and special considerations not present with investments in securities of
U.S. entities.
(d) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies to increase the return of the Fund. Losses may arise due
to changes in the value of the contract due to an unfavorable change in the
price of the underlying security, or index, or if the counterparty does not
perform under the contract. The counterparty for certain instruments may pledge
cash or securities as collateral.
o Variable prepaid forward contracts -- The Fund will enter into Forward
Contracts with terms of approximately one year to sell particular equity
securities that the Fund will strategically purchase with the proceeds of
the Forward Contracts. The strategic equity securities that are the
subject of the Forward Contracts (the "Contract Securities") may be the
subject of a Forward Contract individually, or grouped together as a
basket of multiple Contract Securities. In a Forward Contract, the amount
of shares (or their cash equivalent) that the seller is required to
deliver at maturity varies as a function of the performance of the
Contract Security. The Forward Contracts will be prepaid by the
counterparties to these transactions and as a result, the Fund will not be
exposed to any risk that counterparties to these transactions will be
unable to meet their obligations under the arrangements. The equity
securities may serve as collateral for the Fund's obligation under the
Forward Contracts. The proceeds of the Forward Contracts are reflected as
a liability. The amount of the liability is subsequently marked-to-market
to reflect the current market value of the Forward Contracts.
o Options -- The Fund may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium paid or received). Written and purchased options are non-income
producing investments.
o Financial futures contracts -- The Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss 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.
14 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Notes to Financial Statements (continued)
(e) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(f) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis.
(g) Dividends and distributions -- Dividends paid by the Fund will be paid on a
monthly basis. The Fund expects that its dividends primarily will consist of a
return of capital. Initially a significant portion of any dividend the Fund
receives from the MLP entities will be deferred from taxation until the Fund
sells its interest in such MLP entities. The Fund will distribute net realized
capital gains, if any, at least annually.
(h) Offering expenses -- Direct expenses relating to the public offering of the
Fund's Common Stock were charged to capital at the time of issuance of the
shares.
(i) Recent accounting pronouncements -- For financial statement reporting
purposes, the Fund has adopted the provisions of Financial Accounting Standards
Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN
48") beginning with its initial registration. FIN 48 requires an analysis of tax
positions taken or to be taken on a tax return and whether such positions are
"more likely than not" to be sustained upon examination based on their technical
merit. To the extent they would not be sustained, tax expense (and related
interest and penalties) would be recognized for financial statement reporting
purposes. As discussed in the registration statement, the Fund intends to
qualify for Regulated Investment Company ("RIC") status pursuant to Subchapter M
of the Code. In determining the eligibility of the Fund to claim such status,
management of the Fund relies upon the statutory language of the Code,
regulations issued thereunder and the actual mechanical tests of Code Section
851. As little case law or regulatory explanations exist clarifying certain
aspects of such testing, management has received an opinion from special tax
counsel to the Fund indicating the Fund will qualify as a RIC pursuant to
Subchapter M of the Code. Thus, management believes the recognition threshold of
"more likely than not" has been met and no provision for income taxes is
necessary in the Fund.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, "Fair Value Measurements" ("FAS 157"), was issued and is effective for
fiscal years beginning after November 15, 2007. FAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. At this time, management is evaluating the implications
of FAS 157 and its impact on the Fund's financial statements, if any, has not
been determined.
In February 2007, the Financial Accounting Standards Board Statement of
Financial Accounting Standard No. 159, "The Fair Value Option for Financial
Assets and Financial Liabilities" ("FAS 159"), was issued and is effective for
fiscal years beginning after November 15, 2007. Early adoption is permitted as
of the beginning of a fiscal year that begins on or before November 15, 2007,
provided the entity also elects to apply the provisions of FAS 157. FAS 159
permits entities to choose to measure many financial instruments and certain
other items at fair value that are not currently required to be measured at fair
value. FAS 159 also establishes presentation and disclosure requirements
designed to facilitate comparisons between entities that choose different
measurement attributes for similar types of assets and liabilities. At this
time, management is evaluating the implications of FAS 159 and its impact on the
Fund's financial statements, if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with IQ Investment
Advisors LLC ("IQ"), an indirect, wholly-owned subsidiary of Merrill Lynch &
Co., Inc. ("ML & Co."). IQ is responsible for the investment advisory,
management and administrative services to the Fund. In addition, IQ provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee at
an annual rate equal to 1.12% of the average daily value of the Fund's net
assets. IQ has entered into a Subadvisory Agreement with Fiduciary Asset
Management, LLC ("FAMCO") pursuant to which FAMCO provides certain investment
advisory services to IQ with respect to the Fund. For such services, IQ pays
FAMCO a monthly fee at an annual rate equal to .50% of the average daily value
of the Fund's net assets. There is no increase in aggregate fees paid by the
Fund for these services.
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 15
Notes to Financial Statements (concluded)
IQ has entered into an Administration Agreement with Princeton Administrators,
LLC (the "Administrator"). The Administration Agreement provides that IQ pays
the Administrator a fee at the annual rate of .12% of the average daily value of
the Fund's net assets for the performance of administrative and other services
necessary for the operation of the Fund. There is no increase in aggregate fees
paid by the Fund for these services. The Administrator is an indirect,
wholly-owned subsidiary of BlackRock, Inc. ("BlackRock"). ML & Co. is a
principal owner of BlackRock.
Certain officers of the Fund are officers and/or directors of IQ, ML & Co.,
and/or BlackRock or their affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 2008, were $23,314,321 and $24,511,220, respectively.
4. Common Stock Transactions:
The Fund is authorized to issue 100,000,000 shares of stock, all of which are
initially classified as Common Stock par value $.001. The Board of Directors is
authorized, however, to classify and reclassify any unissued shares of Common
Stock without approval of the holders of Common Stock.
Shares issued and outstanding for the six months ended April 30, 2008 remained
constant and for the period June 29, 2007 to October 31, 2007 increased by
14,500,500 from shares sold and 31,902 from dividend reinvestments.
5. Capital Loss Carryforward:
On October 31, 2007, the Fund had a net capital loss carryforward of $104,402,
all of which expires in 2015.
6. Subsequent Event:
The Fund paid an ordinary income dividend to holders of Common Stock in the
amount of $.1000 per share on May 30, 2008 to shareholders of record on May 20,
2008.
16 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
Proxy Results
During the six-month period ended April 30, 2008, the shareholders of MLP &
Strategic Equity Fund Inc. voted on the following proposal, which was approved
at the annual shareholders' meeting on April 25, 2008. A description of the
proposal and number of shares voted are as follows:
--------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
--------------------------------------------------------------------------------------------------
To elect the Fund's Board of Directors: Paul Glasserman 13,775,010 218,919
Steven W. Kohlhagen 13,774,060 219,869
William J. Rainer 13,776,660 217,269
Laura S. Unger 13,777,760 216,219
--------------------------------------------------------------------------------------------------
MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008 17
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at
http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the
SEC's Public Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
The Fund offers electronic delivery of communications to its shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this website
at http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification number
(PIN). You will need this PIN should you wish to update your e-mail address,
choose to discontinue this service and/or make any other changes to the service.
This service is not available for certain retirement accounts at this time.
Contact Information
For more information regarding the Fund, please visit www.IQIAFunds.com or
contact us at 1-877-449-4742.
18 MLP & STRATEGIC EQUITY FUND INC. APRIL 30, 2008
[LOGO]
IQ INVESTMENT
ADVISORS www.IQIAFunds.com
MLP & Strategic Equity Fund Inc. seeks to provide a high level of after-tax
total return.
This report, including the financial information herein, is transmitted to
shareholders of MLP & Strategic Equity Fund Inc. for their information. It is
not a prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Statements and other
information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge at
www.IQIAFunds.com/proxyvoting.asp or upon request by calling toll-free
1-877-449-4742 or through the Securities and Exchange Commission's website at
http://www.sec.gov. Information about how the Fund voted proxies relating to
securities held in the Fund's portfolio during the most recent 12-month period
ended June 30 is available (1) at www.IQIAFunds.com/proxyvoting.asp; and (2) on
the Securities and Exchange Commission's website at http://www.sec.gov.
MLP & Strategic Equity Fund Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
#IQMTP -- 4/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable since no such divestments occurred during the
semi-annual period covered since the last report on Form N-CSR.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating Committee will consider nominees to the Board
recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and set forth the
qualifications of the proposed nominee to the registrant's Secretary.
There have been no material changes to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial officers
or persons performing similar functions have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act")) are effective as of a date within 90 days of the filing
of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
MLP & Strategic Equity Fund Inc.
By: /s/ Mitchell M. Cox
--------------------------------
Mitchell M. Cox
Chief Executive Officer of
MLP & Strategic Equity Fund Inc.
Date: June 20, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Mitchell M. Cox
--------------------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of
MLP & Strategic Equity Fund Inc.
Date: June 20, 2008
By: /s/ James E. Hillman
--------------------------------
James E. Hillman
Chief Financial Officer (principal financial officer) of
MLP & Strategic Equity Fund Inc.
Date: June 20, 2008