Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other
disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the
NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities,
the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal
market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are typically
valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Futures contracts whose settlement prices are determined as of the
close of the NYSE are typically valued based on the settlement price while other futures contracts are typically valued at the last traded price on the exchange on which they trade. Swaps are generally valued using
evaluated prices obtained from an independent pricing vendor.
In certain instances, the Pricing
Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as
scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and
assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of
Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for
such securities existed.
The fund uses a three-tier hierarchy
to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities,
including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment
speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities
valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in
determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the
risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the
values by input classification of the fund’s investments as of January 31, 2022, by major security category or type:
|
| Total
value at
1-31-22
| Level 1
quoted
price
| Level 2
significant
observable
inputs
| Level 3
significant
unobservable
inputs
|
|
|
|
|
|
|
| Investments in securities:
|
|
|
|
|
| Assets
|
|
|
|
|
| Common stocks
| $778,441,900
| $778,441,900
| —
| —
|
| Preferred securities
|
|
|
|
|
| Communication services
| 23,230,308
| 23,230,308
| —
| —
|
| Energy
| 5,577,600
| 5,577,600
| —
| —
|
| Financials
| 88,979,151
| 88,979,151
| —
| —
|
| Health care
| 11,058,600
| 11,058,600
| —
| —
|
| Utilities
| 184,564,151
| 179,219,651
| $5,344,500
| —
|
| Corporate bonds
| 212,761,322
| —
| 212,761,322
| —
|
| Short-term investments
| 16,715,000
| —
| 16,715,000
| —
|
| Total investments in securities
| $1,321,328,032
| $1,086,507,210
| $234,820,822
| —
|
| Derivatives:
|
|
|
|
|
| Assets
|
|
|
|
|
| Futures
| $1,192,591
| $1,192,591
| —
| —
|
| Liabilities
|
|
|
|
|
| Swap contracts
| (1,726,934)
| —
| $(1,726,934)
| —
|
For additional information on the
fund’s significant accounting policies and risks, please refer to the fund’s most recent semiannual or annual shareholder report and prospectus.
