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

811-07390

 

Boulder Total Return Fund, Inc.

(Exact name of registrant as specified in charter)

 

1680 38th Street, Suite 800
Boulder, CO 80301

(Address of principal executive offices) (Zip code)

 

Stephen C. Miller, Esq.
1680 38th
Street, Suite 800
Boulder, CO  80301

(Name and address of agent for service)

 

 

 

Registrant's telephone number, including area code:

303-444-5483

 

 

Date of fiscal year end:

November 30, 2005

 

 

Date of reporting period:

August 31, 2005

 

 



 

Item 1. Schedule of Investments. –  The schedule of investments for the period ended August 31, 2005 is filed herewith.

 



 

Portfolio of Investments as of August 31, 2005

(Unaudited)

Boulder Total Return Fund, Inc.

 

Shares

 

Description

 

Value (Note 1)

 

LONG TERM INVESTMENTS—110.2%

 

 

 

DOMESTIC COMMON STOCKS—106.1%

 

 

 

Beverages—7.4%

 

 

 

323,000

 

Anheuser-Busch Companies, Inc.

 

$

14,312,130

 

150,000

 

Pepsi Bottling Group, Inc.

 

4,422,000

 

 

 

 

 

18,734,130

 

 

 

 

 

 

 

Diversified—30.4%

 

 

 

690

 

Berkshire Hathaway Inc., Class A (+)

 

57,373,500

 

7,010

 

Berkshire Hathaway Inc., Class B (+)

 

19,459,760

 

 

 

 

 

76,833,260

 

 

 

 

 

 

 

Financial Services—12.7%

 

 

 

293,360

 

Citigroup, Inc.

 

12,840,367

 

177,000

 

Doral Financial Corp.

 

2,538,180

 

120,000

 

Federated Investors, Inc.

 

3,727,200

 

698,000

 

Providian Financial Corporation (+)

 

12,982,800

 

 

 

 

 

32,088,547

 

 

 

 

 

 

 

Insurance—6.7%

 

 

 

60,000

 

Fidelity National Financial, Inc.

 

2,347,200

 

120,000

 

First American Corporation

 

4,993,200

 

169,250

 

Marsh & McLennan Companies, Inc.

 

4,747,463

 

90,000

 

Torchmark Corporation

 

4,746,600

 

 

 

 

 

16,834,463

 

 

 

 

 

 

 

Manufacturing—3.8%

 

 

 

150,500

 

Eaton Corporation

 

9,619,960

 

 

 

 

 

 

 

Pharmaceuticals—5.9%

 

 

 

63,000

 

Bristol-Meyers Squibb Company

 

1,541,610

 

90,000

 

Forest Laboratories, Inc. (+)

 

3,996,000

 

150,000

 

Merck & Company, Inc.

 

4,234,500

 

200,000

 

Pfizer, Inc.

 

5,094,000

 

 

 

 

 

14,866,110

 

 

 

 

 

 

 

REITS—22.2%

 

 

 

400,000

 

First Industrial Realty Trust, Inc.

 

15,160,000

 

400,000

 

Hospitality Properties Trust

 

17,344,000

 

1,300,000

 

HRPT Properties Trust

 

16,640,000

 

60,000

 

Pan Pacific Retail Properties, Inc.

 

3,976,200

 

50,000

 

Regency Centers Corporation

 

2,916,500

 

 

 

 

 

56,036,700

 

 

 

 

 

 

 

Retail—14.5%

 

 

 

190,500

 

Wal-Mart Stores, Inc.

 

8,564,880

 

590,000

 

Yum! Brands, Inc.

 

27,954,200

 

 

 

 

 

36,519,080

 

 

 

 

 

 

 

Savings & Loan Companies—2.5%

 

 

 

153,000

 

Washington Mutual, Inc.

 

6,361,740

 

 

 

 

 

 

 

 

 

Total Domestic Common Stocks (cost $185,127,538)

 

267,893,990

 

 

1



 

FOREIGN COMMON STOCKS—4.1%

 

 

 

Netherlands—1.2%

 

 

 

95,117

 

Heineken NV

 

$

3,063,697

 

 

 

 

 

 

 

New Zealand—1.2%

 

 

 

3,750,136

 

Kiwi Income Property Trust

 

3,012,049

 

 

 

 

 

 

 

United Kingdom—1.7%

 

 

 

75,000

 

Diageo PLC, Sponsored ADR

 

4,328,250

 

 

 

 

 

 

 

 

 

Total Foreign Common Stocks (cost $9,128,143)

 

10,403,996

 

 

 

 

 

 

 

 

 

Total Long Term Investments (cost $194,255,681)

 

278,297,986

 

SHORT TERM INVESTMENTS—18.4%

 

 

 

 

 

 

 

 

 

Par
Value

 

 

 

 

 

BANK DEPOSIT—0.5%

 

 

 

1,431,000

 

Investors Bank & Trust Money Market Deposit Account, 2.750% due 9/01/05
(cost $1,431,000)

 

1,431,000

 

 

 

 

 

 

 

Shares

 

 

 

 

 

AUCTION MARKET PREFERRED SECURITIES—9.9%

 

 

 

110

 

Calamos Convertible Opportunities & Income Fund, Series TH7

 

2,750,000

 

100

 

Calamos Strategic Total Return, Series A

 

2,500,000

 

120

 

Cohen & Steers Income Fund, Inc., Series TH28

 

3,000,000

 

27

 

Evergreen Managed Income Fund, Inc., Series TH28

 

675,000

 

120

 

Flaherty & Crumrine Claymore Preferred Securities, Income Fund, Series T7

 

3,000,000

 

48

 

Pimco Corporate Income Fund, Series T

 

1,200,000

 

110

 

Pimco Corporate Opportunity Fund, Series TH

 

2,750,000

 

110

 

Pimco Floating Rate Income Fund, Series TH

 

2,750,000

 

40

 

Western Asset Premier Bond Fund, Series M

 

1,000,000

 

200

 

Western Asset/Claymore US Treasury Inflation Protected Securities Fund, Series TH

 

5,000,000

 

 

 

 

 

 

 

 

 

Total Auction Market Preferred Securities (cost $24,625,000)

 

24,625,000

 

 

Par
Value

 

 

 

 

 

FOREIGN GOVERNMENT BONDS—3.1%

United Kingdom—3.1%

 

 

 

$

2,700,000

 

UK Gilt Treasury Bond, 8.500% due 12/07/05

 

4,911,454

 

1,620,000

 

UK Treasury Bill, .000% due 10/24/05 (*)

 

2,895,878

 

 

 

 

 

7,807,332

 

 

 

 

 

 

 

 

 

Total FOREIGN GOVERNMENT BONDS (cost $7,703,877)

 

7,807,332

 

 

2



 

U.S. TREASURY BILLS—4.9%

 

 

 

$

2,500,000

 

3.270% due 9/01/05

 

$

2,500,000

 

4,400,000

 

3.315% due 10/13/05

 

4,382,983

 

5,600,000

 

3.330% due 10/13/05

 

5,578,589

 

 

 

 

 

 

 

 

 

Total U.S. Treasury Bills (cost $12,461,572)

 

12,461,572

 

 

 

 

 

 

 

 

 

Total Short Term Investments (cost $46,221,449)

 

46,324,904

 

 

 

 

 

 

 

Total Investments — 128.6% (cost $240,477,130)

 

324,622,890

 

 

 

Other Assets and Liabilities

 

5,326,967

 

 

 

Total Net Assets Available to Common Stock and Preferred Stock

 

329,949,857

 

 

 

Auction Market Preferred Stock (AMPs) Redemption Value

 

(77,500,000

)

 

 

 

 

 

 

 

 

Total Net Assets Available to Common Stock

 

252,449,857

 

 


(+)           Non-income producing security.

(*)           Zero coupon bond.

ADR -     American Depository Receipt.

3



 

Boulder Total Return Fund, Inc.

August 31, 2005 (Unaudited)

 

Note 1.  Valuation and Investment Practices

 

Portfolio Valuation:  The net asset value of the Fund’s Common Stock is determined by the Fund’s administrator no less frequently than on the last business day of each week and month. It is determined by dividing the value of the Fund’s net assets attributable to common shares by the number of shares of Common Stock outstanding. The value of the Fund’s net assets attributable to common shares is deemed to equal the value of the Fund’s total assets less (i) the Fund’s liabilities and (ii) the aggregate liquidation value of the outstanding Taxable Auction Market Preferred Stock. Securities listed on a national securities exchange are valued on the basis of the last sale on such exchange or the NASDAQ Official Close Price (“NOCP”) on the day of valuation. In the absence of sales of listed securities and with respect to securities for which the most recent sale prices are not deemed to represent fair market value and unlisted securities (other than money market instruments), securities are valued at the mean between the closing bid and asked prices when quoted prices for investments are readily available. Investments 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 reference to valuations of other securities which are considered comparable in quality, maturity and type. Investments in money market instruments, which mature in 60 days or less at the time of purchase, are valued at amortized cost.

 

Securities Transactions and Investment Income: Securities transactions are recorded as of the trade date. Realized gains and losses from securities sold are recorded on the identified cost basis. Dividend income is recorded on ex-dividend dates. Interest income is recorded using the interest method.

 

Dividend income is recorded at management’s estimate of the income included in distributions received from investments in real estate investment trusts (“REITs”) and registered investment companies (“RICs”).  Distributions received in excess of this amount are recorded as a reduction of the cost of investments.  The actual amounts of income and return of capital are determined by each REIT or RIC only after its fiscal year-end, and may differ from the estimated amounts.

 

Repurchase Agreements: The Fund may engage in repurchase agreement transactions. The Fund’s Management reviews and approves periodically the eligibility of the banks and dealers with which the Fund enters into repurchase agreement transactions. The value of the collateral underlying such transactions is at least equal at all times to the total amount of the repurchase obligations, including interest. The Fund maintains possession of the collateral and, in the event of counterparty default, the Fund has the right to use the collateral to offset losses incurred. There is the possibility of loss to the Fund in the event the Fund is delayed or prevented from exercising its rights to dispose of the collateral securities.

 

Note 2.  Unrealized Appreciation/ (Depreciation)

 

On August 31, 2005, the net unrealized appreciation on investments based on cost of $237,889,414 for federal income tax purposes was $86,733,476, consisting of $93,647,162 aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and $(6,913,686) aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value.

 

4



 

Item 2. Controls and Procedures.

 

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer 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, (17CFR 270.30a-3(c)), are effective based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this report.

 

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended, (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

Certifications of the Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, (17 CFR 270.30a-2(a)) are attached hereto as Exhibit 99CERT.

 



 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

BOULDER TOTAL RETURN FUND, INC.

 

 

By

 /s/ Stephen C. Miller

 

 Stephen C. Miller, President

 

 (Principal Executive Officer)

 

Date

   10/7/05

 

 

 

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/ Stephen C. Miller

 

 Stephen C. Miller, President

 

 (Principal Executive Officer)

 

Date

   10/7/05

 

 

 

By

 /s/ Carl D. Johns

 

 Carl D. Johns, Chief Financial Officer, Vice President and Treasurer

 

 (Principal Financial Officer)

 

Date

   10/7/05