UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-22040
Name of Fund: MLP & Strategic Equity Fund Inc.
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: 05/01/2008 - 07/31/2008
Item 1 - Schedule of Investments
MLP & Strategic Equity Fund Inc.
Schedule of Investments as of July 31, 2008 (Unaudited)
Units
Industry Master Limited Partnerships & MLP Affiliates Held Value
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Energy Equipment & Exterran Partners LP 39,000 $ 999,180
Services - 0.5%
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Gas Utilities - 6.1% Amerigas Partners LP 117,023 3,715,480
Ferrellgas Partners LP 134,818 2,664,004
Spectra Energy Partners LP 168,710 3,996,740
Suburban Propane Partners LP 64,246 2,481,181
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12,857,405
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Oil, Gas & Consumable Alliance Resource Partners LP 82,935 3,994,979
Fuels - 92.0% Atlas Energy Resources LLC 129,000 4,576,920
Atlas Pipeline Holdings LP 116,065 4,017,010
Boardwalk Pipeline Partners LP 280,490 6,636,393
BreitBurn Energy Partners LP - Common Units 44,365 762,191
BreitBurn Energy Partners LP - Common Units (b) 78,870 1,348,217
Buckeye Partners LP 100,670 4,244,247
Calumet Specialty Products Partners LP 42,088 586,707
Cheniere Energy Partners LP 347,752 2,656,825
Constellation Energy Partners LLC 19,457 359,955
Copano Energy LLC Class E Units (b) 11,804 365,332
Copano Energy LLC Common Units 118,194 3,704,199
Crosstex Energy LP 95,781 2,550,648
DCP Midstream Partners LP 56,890 1,719,216
Duncan Energy Partners LP 52,890 972,118
EV Energy Partner LP 32,120 907,390
Eagle Rock Energy Partners LP 169,308 2,598,878
El Paso Pipeline Partners LP 200,000 3,900,000
Enbridge Energy Management LLC (d) 114,890 5,920,282
Enbridge Energy Partners LP 64,030 3,184,852
Encore Energy Partners LP 50,000 1,193,500
Energy Transfer Equity LP 304,457 9,048,462
Energy Transfer Partners LP 140,000 5,986,400
Enterprise Products Partners LP 566,482 16,852,839
Genesis Energy LP 66,685 1,231,672
Global Partners LP 23,002 320,418
Hiland Partners LP 22,805 1,042,188
Holly Energy Partners LP 35,939 1,259,303
Inergy LP 108,035 2,745,169
K-Sea Transportation Partners LP 19,659 589,770
Kinder Morgan Management LLC (a)(d) 379,592 20,843,391
Legacy Reserves LP 46,143 992,074
Linn Energy LLC Common Units 239,987 5,234,116
Magellan Midstream Partners LP 162,340 5,873,461
MarkWest Energy Partners LP 88,030 2,909,391
Martin Midstream Partners LP 33,561 1,048,110
Natural Resource Partners LP 130,475 4,946,307
MLP & Strategic Equity Fund Inc.
Schedule of Investments as of July 31, 2008 (Unaudited)
Units
Industry Master Limited Partnerships & MLP Affiliates Held Value
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Nustar Energy LP 95,380 $ 4,377,942
ONEOK Partners LP 193,650 10,482,274
OSG America LP 60,000 798,000
Penn Virginia Resource Partners LP 97,215 2,368,157
Plains All American Pipeline LP 246,319 11,347,916
Quest Energy Partners LP 34,360 524,677
Regency Energy Partners LP 144,875 3,582,759
SemGroup Energy Partners LP 65,530 571,422
Sunoco Logistics Partners LP 71,485 3,452,011
TC PipeLines LP 89,025 3,065,131
TEPPCO Partners LP 192,910 5,904,975
Targa Resources Partners LP 109,585 2,468,950
Teekay LNG Partners LP 78,665 1,959,545
Transmontaigne Partners LP 28,396 709,900
U.S. Shipping Partners LP 14,925 39,402
Vanguard Natural Resources LLC 21,733 335,123
Williams Partners LP 97,285 2,910,767
Williams Pipeline Partners LP 73,840 1,254,542
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193,276,423
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Total Master Limited Partnerships & MLP Affiliates
(Cost - $242,801,058) - 98.6% 207,133,008
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Shares
Common Stocks Held
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Aerospace & Defense - 1.2% Alliant Techsystems, Inc. (a) 17,121 1,694,808
Precision Castparts Corp. 9,636 900,291
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2,595,099
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Air Freight & Logistics - 1.4% FedEx Corp. 36,807 2,901,864
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Auto Components - 0.3% The Goodyear Tire & Rubber Co. (a) 23,050 452,472
TRW Automotive Holdings Corp. (a) 5,894 109,334
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561,806
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Automobiles - 0.5% Ford Motor Co. (a) 212,745 1,021,176
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Biotechnology - 12.0% Amgen, Inc. (a) 239,773 15,016,983
Genentech, Inc. (a) 91,154 8,682,418
Genzyme Corp. (a) 18,842 1,444,239
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25,143,640
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Building Products - 0.0% USG Corp. (a) 1,908 54,760
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Capital Markets - 6.5% E*Trade Financial Corp. (a) 103,466 312,467
Franklin Resources, Inc. 20,046 2,016,828
The Goldman Sachs Group, Inc. 57,737 10,625,917
Lehman Brothers Holdings, Inc. 46,290 802,669
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13,757,881
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Chemicals - 1.2% The Mosaic Co. 14,678 1,867,188
OM Group, Inc. (a) 18,471 620,626
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2,487,814
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MLP & Strategic Equity Fund Inc.
Schedule of Investments as of July 31, 2008 (Unaudited)
Shares
Industry Common Stocks Held Value
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Commercial Services & Monster Worldwide, Inc. (a) 1,131 $ 20,064
Supplies - 0.2% Stericycle, Inc. (a) 7,347 438,983
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459,047
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Communications Cisco Systems, Inc. (a) 470,593 10,348,340
Equipment - 5.2% Corning, Inc. 2,216 44,342
EchoStar Holding Corp. (a) 8,869 283,719
Motorola, Inc. 20,212 174,632
-------------
10,851,033
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Computers & Apple, Inc. (a) 74,427 11,830,172
Peripherals - 11.2% Dell, Inc. (a) 283,300 6,960,681
EMC Corp. (a) 263,097 3,949,086
NCR Corp. (a) 16,860 452,860
Teradata Corp. (a) 16,859 394,833
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23,587,632
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Construction & Foster Wheeler Ltd. (a) 6,582 373,660
Engineering - 1.0% Jacobs Engineering Group, Inc. (a) 17,427 1,347,804
The Shaw Group, Inc. (a) 6,288 363,446
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2,084,910
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Consumer Finance - 1.9% Capital One Financial Corp. 95,183 3,984,360
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Containers & Packaging - 0.3% Pactiv Corp. (a) 22,446 541,173
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Diversified Consumer Apollo Group, Inc. Class A (a) 60,947 3,796,389
Services - 1.8%
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Diversified Telecommunication Qwest Communications International Inc. 185,885 711,940
Services - 0.3%
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Electric Utilities - 1.2% Allegheny Energy, Inc. 50,393 2,439,021
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Electronic Equipment & Agilent Technologies, Inc. (a) 48,088 1,734,053
Instruments - 2.2% Arrow Electronics, Inc. (a) 14,957 481,915
Ingram Micro, Inc. Class A (a) 81,179 1,496,129
Mettler Toledo International, Inc. (a) 4,626 497,341
Vishay Intertechnology, Inc. (a) 49,954 448,087
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4,657,525
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Energy Equipment & Cameron International Corp. (a) 156,193 7,459,778
Services - 14.3% FMC Technologies, Inc. (a) 46,535 2,874,932
Nabors Industries Ltd. (a) 113,792 4,148,856
National Oilwell Varco, Inc. (a) 24,627 1,936,421
Noble Corp. 68,880 3,572,806
SEACOR Holdings, Inc. (a) 23,826 1,993,521
Schlumberger Ltd. 6,878 698,805
Weatherford International Ltd. (a) 197,504 7,451,826
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30,136,945
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Food Products - 0.3% Dean Foods Co. (a) 16,205 345,167
Smithfield Foods, Inc. (a) 14,740 316,615
-------------
661,782
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Health Care Equipment & Zimmer Holdings, Inc. (a) 13,813 951,854
Supplies - 0.4%
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MLP & Strategic Equity Fund Inc.
Schedule of Investments as of July 31, 2008 (Unaudited)
Shares
Industry Common Stocks Held Value
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Health Care Providers & Aetna, Inc. 66,558 $ 2,729,544
Services - 15.2% Cigna Corp. 139,335 5,158,182
Coventry Health Care, Inc. (a) 13,715 485,100
Express Scripts, Inc. (a) 44,099 3,110,743
Laboratory Corp. of America Holdings (a) 10,490 708,914
Lincare Holdings, Inc. (a) 7,205 232,145
Medco Health Solutions, Inc. (a) 32,282 1,600,542
UnitedHealth Group, Inc. 279,556 7,849,932
WellPoint, Inc. (a) 190,237 9,977,931
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31,853,033
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Health Care Technology - 0.0% Cerner Corp. (a) 1,331 59,442
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Hotels, Restaurants & Jack in the Box, Inc. (a) 3,025 65,280
Leisure - 0.6% Las Vegas Sands Corp. (a) 6,963 316,956
MGM Mirage (a) 20,136 584,347
Starbucks Corp. (a) 13,530 198,756
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1,165,339
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Household Durables - 0.3% Mohawk Industries, Inc. (a) 9,782 576,845
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Household Products - 0.2% Energizer Holdings, Inc. (a) 6,980 497,953
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IT Services - 1.8% Cognizant Technology Solutions Corp. (a) 9,568 268,574
Computer Sciences Corp. (a) 48,955 2,318,998
DST Systems, Inc. (a) 6,961 420,653
Fiserv, Inc. (a) 14,142 676,270
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3,684,495
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Independent Power Producers & The AES Corp. (a) 208,219 3,360,655
Energy Traders - 4.7% Mirant Corp. (a) 103,432 3,166,054
NRG Energy, Inc. (a) 93,177 3,381,393
-------------
9,908,102
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Insurance - 4.7% American International Group, Inc. 117,608 3,063,688
Arch Capital Group Ltd. (a) 49,769 3,470,392
The Progressive Corp. 160,937 3,258,974
-------------
9,793,054
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Internet Software & eBay, Inc. (a) 166,427 4,188,968
Services - 4.1% Google, Inc. Class A (a) 9,205 4,360,869
-------------
8,549,837
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Machinery - 1.7% Danaher Corp. 36,379 2,897,587
Terex Corp. (a) 14,912 705,785
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3,603,372
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Media - 6.4% Comcast Corp. Class A 205,094 4,229,038
The DIRECTV Group, Inc. (a) 93,725 2,532,449
DISH Network Corp. (a) 44,341 1,304,512
Liberty Media Corp. - Entertainment Class A (a) 185,308 4,562,283
Liberty Media Holding Corp. - Capital (a) 46,327 719,922
-------------
13,348,204
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Metals & Mining - 2.7% Century Aluminum Co. (a) 16,077 955,295
Freeport-McMoRan Copper & Gold, Inc. Class B 6,066 586,886
MLP & Strategic Equity Fund Inc.
Schedule of Investments as of July 31, 2008 (Unaudited)
Shares
Industry Common Stocks Held Value
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Nucor Corp. 20,564 $ 1,176,672
United States Steel Corp. 17,984 2,883,914
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5,602,767
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Multiline Retail - 2.5% Dollar Tree, Inc. (a) 11,219 420,713
Kohl's Corp. (a) 116,968 4,902,129
-------------
5,322,842
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Office Electronics - 1.4% Xerox Corp. 210,923 2,876,990
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Oil, Gas & Consumable Forest Oil Corp. (a) 1,739 99,175
Fuels - 0.5% Newfield Exploration Co. (a) 19,788 969,216
-------------
1,068,391
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Pharmaceuticals - 1.3% Forest Laboratories, Inc. (a) 78,115 2,773,864
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Semiconductors & Semiconductor Lam Research Corp. (a) 35,837 1,178,679
Equipment - 0.6%
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Software - 6.5% Adobe Systems, Inc. (a) 8,740 361,399
Autodesk, Inc. (a) 10,805 344,571
Cadence Design Systems, Inc. (a) 89,274 659,735
Electronic Arts, Inc. (a) 45,249 1,953,852
Intuit, Inc. (a) 21,800 595,794
Oracle Corp. (a) 454,673 9,789,110
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13,704,461
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Specialty Retail - 3.1% AutoNation, Inc. (a) 26,874 277,340
AutoZone, Inc. (a) 20,771 2,706,254
Bed Bath & Beyond, Inc. (a) 128,444 3,574,597
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6,558,191
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Textiles, Apparel & Luxury Coach, Inc. (a) 20,871 532,419
Goods - 0.2%
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Wireless Telecommunication American Tower Corp. Class A (a) 12,256 513,526
Services - 0.6% Crown Castle International Corp. (a) 10,928 417,450
Leap Wireless International, Inc. (a) 6,773 292,119
NII Holdings, Inc. (a) 2,516 137,525
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1,360,620
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Total Common Stocks (Cost - $284,632,377) - 122.5% 257,406,551
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Short-Term Securities
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SSgA Prime Money Market Fund, 2.45% (c) 1,973,472 1,973,472
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Total Short-Term Securities (Cost - $1,973,472) - 1.0% 1,973,472
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Total Investments (Cost - $529,406,907*) - 222.1% 466,513,031
Liabilities in Excess of Other Assets - (122.1%) (256,426,143)
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Net Assets - 100.0% $ 210,086,888
=============
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 529,406,907
=============
Gross unrealized appreciation $ 26,236,928
Gross unrealized depreciation (89,130,804)
-------------
Net unrealized depreciation $ (62,893,876)
=============
MLP & Strategic Equity Fund Inc.
Schedule of Investments as of July 31, 2008 (Unaudited)
(a) Non-income producing security.
(b) Restricted securities as to resale, representing 0.8% of net assets were
as follows:
--------------------------------------------------------------------------
Acquisition
Issue Date(s) Cost Fair Value
--------------------------------------------------------------------------
BreitBurn Energy Partners LP -
Common Units 11/01/2007 $ 2,019,466 $ 1,348,217
Copano Energy LLC Class E Units 10/19/2007 375,013 365,332
--------------------------------------------------------------------------
Total $ 2,394,479 $ 1,713,549
==========================
(c) Represents the current yield as of July 31, 2008.
(d) Represents a pay-in-kind security, which may pay dividends in additional
units.
o For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or 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 July 31, 2008 were as follows:
-------------------------------------------------------------------------------------------------------------
Notional Valuation
Amount Issue (a) Counterparty Date Value
-------------------------------------------------------------------------------------------------------------
$44,000,000 Basket of Securities, Tranche 4 HSBC Bank USA, NA 8/01/2008 $ (38,811,476)
$44,000,000 Basket of Securities, Tranche 5 HSBC Bank USA, NA 8/04/2008 (38,811,476)
$40,064,922 Basket of Securities, Tranche 1 HSBC Bank USA, NA 8/07/2008 (35,974,614)
$40,064,922 Basket of Securities, Tranche 2 HSBC Bank USA, NA 8/08/2008 (35,974,614)
$40,064,922 Basket of Securities, Tranche 3 HSBC Bank USA, NA 8/11/2008 (35,974,614)
$40,064,922 Basket of Securities, Tranche 4 HSBC Bank USA, NA 8/12/2008 (35,974,614)
$40,064,922 Basket of Securities, Tranche 5 HSBC Bank USA, NA 8/13/2008 (35,974,614)
-------------------------------------------------------------------------------------------------------------
Total (Proceeds - $285,441,366) $(257,496,022)
=============
(a) Non-income producing securities.
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
MLP & Strategic Equity Fund Inc.
By: /s/ Mitchell M. Cox
--------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of
MLP & Strategic Equity Fund Inc.
Date: September 25, 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: September 25, 2008
By: /s/ James E. Hillman
--------------------
James E. Hillman
Chief Financial Officer (principal financial officer) of
MLP & Strategic Equity Fund Inc.
Date: September 25, 2008