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UNITED STATES |
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FORM N-Q |
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QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY |
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Investment Company Act file number |
811-02319 |
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Fort Dearborn Income Securities, Inc. |
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(Exact name of registrant as specified in charter) |
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51 West 52nd Street, New York, New York |
10019-6114 |
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(Address of principal executive offices) |
(Zip code) |
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Mark F. Kemper, Esq. UBS Global Asset Management (US) Inc. 51 West 52nd Street New York, NY 10019-6114 |
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(Name and address of agent for service) |
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Copy to: Bruce G. Leto, Esq. Stradley Ronon Stevens & Young LLP 2600 One Commerce Square Philadelphia, PA 19103 |
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Registrants telephone number, including area code: |
212-882 5000 |
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Date of fiscal year end: |
September 30 |
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Date of reporting period: |
December 31, 2004 |
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Fort Dearborn Income Securities, Inc.
As of December 31, 2004 (Unaudited)
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Face |
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Value |
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Bonds 97.70% |
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U.S. Bonds 90.79% |
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U.S. Corporate Bonds 57.35% |
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Alcoa, Inc. |
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6.000%, due 01/15/12 |
|
$ |
720,000 |
|
$ |
786,539 |
|
Allstate Corp. |
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6.750%, due 05/15/18 |
|
195,000 |
|
221,637 |
|
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Altria Group, Inc. |
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7.750%, due 01/15/27 |
|
310,000 |
|
347,936 |
|
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Amerada Hess Corp. |
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7.875%, due 10/01/29 |
|
450,000 |
|
532,443 |
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Anadarko Finance Co., Series B |
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7.500%, due 05/01/31 |
|
745,000 |
|
923,014 |
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Apache Corp. |
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6.250%, due 04/15/12 |
|
305,000 |
|
341,228 |
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AT&T Corp. |
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9.750%, due 11/15/31 |
|
860,000 |
|
1,026,625 |
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AT&T Wireless Services, Inc. |
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8.750%, due 03/01/31 |
|
945,000 |
|
1,274,156 |
|
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Augusta Funding VI, 144A |
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7.375%, due 04/15/13 |
|
2,500,000 |
|
2,625,725 |
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Avalonbay Communities, Inc. |
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7.500%, due 08/01/09 |
|
375,000 |
|
422,838 |
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Avon Products, Inc. |
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7.150%, due 11/15/09 |
|
1,270,000 |
|
1,435,395 |
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Bank of America Corp. |
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7.400%, due 01/15/11 |
|
1,915,000 |
|
2,218,294 |
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Bank One Corp. |
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7.875%, due 08/01/10 |
|
815,000 |
|
950,640 |
|
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BellSouth Corp. |
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|
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6.000%, due 10/15/11 |
|
315,000 |
|
343,331 |
|
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Boeing Capital Corp. |
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7.375%, due 09/27/10 |
|
320,000 |
|
368,935 |
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Bombardier, Inc., 144A |
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6.750%, due 05/01/12 |
|
1,020,000 |
|
935,850 |
|
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Bristol-Myers Squibb Co. |
|
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5.750%, due 10/01/11 |
|
395,000 |
|
423,036 |
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Burlington Northern Santa Fe Corp. |
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6.875%, due 12/01/27 |
|
120,000 |
|
136,893 |
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7.082%, due 05/13/29 |
|
740,000 |
|
864,997 |
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C.S. First Boston USA, Inc. |
|
|
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6.500%, due 01/15/12 |
|
1,105,000 |
|
1,229,845 |
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Caterpillar, Inc. |
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6.550%, due 05/01/11 |
|
720,000 |
|
808,073 |
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Cendant Corp. |
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7.375%, due 01/15/13 |
|
340,000 |
|
393,323 |
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Centex Corp. |
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7.875%, due 02/01/11 |
|
300,000 |
|
350,430 |
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CIT Group, Inc. |
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7.750%, due 04/02/12 |
|
140,000 |
|
165,719 |
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Citigroup, Inc., 144A |
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5.000%, due 09/15/14 |
|
2,567,000 |
|
2,579,383 |
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Citizens Communications Co. |
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9.000%, due 08/15/31 |
|
585,000 |
|
668,362 |
|
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Comcast Corp. |
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7.050%, due 03/15/33 |
|
1,300,000 |
|
1,487,496 |
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ConAgra Foods, Inc. |
|
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6.750%, due 09/15/11 |
|
420,000 |
|
472,531 |
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ConocoPhillips |
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8.750%, due 05/25/10 |
|
680,000 |
|
829,854 |
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Coors Brewing Co. |
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6.375%, due 05/15/12 |
|
350,000 |
|
384,813 |
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DaimlerChrysler N.A. Holding Corp. |
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8.500%, due 01/18/31 |
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845,000 |
|
1,055,787 |
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Delta Air Lines, Inc. (a) |
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10.500%, due 04/30/16 |
|
700,000 |
|
459,053 |
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Face |
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Value |
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Devon Financing Corp., ULC |
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6.875%, due 09/30/11 |
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$ |
670,000 |
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$ |
758,813 |
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Dominion Resources, Inc. |
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5.700%, due 09/17/12 |
|
415,000 |
|
439,404 |
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Dow Chemical Co. |
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6.125%, due 02/01/11 |
|
330,000 |
|
361,454 |
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Duke Energy Field Services LLC |
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8.125%, due 08/16/30 |
|
590,000 |
|
757,201 |
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EOP Operating LP |
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7.250%, due 06/15/28 |
|
700,000 |
|
793,005 |
|
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Erac U.S.A. Finance Co., 144A |
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8.000%, due 01/15/11 |
|
1,065,000 |
|
1,253,702 |
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Federated Department Stores, Inc. |
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6.625%, due 04/01/11 |
|
300,000 |
|
335,432 |
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First Data Corp. |
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5.625%, due 11/01/11 |
|
375,000 |
|
402,963 |
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FirstEnergy Corp., Series B |
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|
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6.450%, due 11/15/11 |
|
650,000 |
|
706,205 |
|
||
Ford Motor Co. |
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|
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7.450%, due 07/16/31 |
|
2,290,000 |
|
2,303,140 |
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General Dynamics Corp. |
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4.250%, due 05/15/13 |
|
730,000 |
|
714,879 |
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||
General Electric Capital Corp. |
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|
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6.000%, due 06/15/12 |
|
1,730,000 |
|
1,885,764 |
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||
6.750%, due 03/15/32 |
|
1,150,000 |
|
1,346,017 |
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General Motors Acceptance Corp. |
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6.875%, due 09/15/11 |
|
265,000 |
|
271,570 |
|
||
8.000%, due 11/01/31 |
|
1,550,000 |
|
1,593,222 |
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General Motors Corp. |
|
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8.375%, due 07/15/33 |
|
1,000,000 |
|
1,036,083 |
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Goldman Sachs Group, Inc. |
|
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6.125%, due 02/15/33 |
|
440,000 |
|
457,103 |
|
||
6.875%, due 01/15/11 |
|
1,685,000 |
|
1,900,980 |
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HSBC Finance Corp. |
|
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|
|
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6.750%, due 05/15/11 |
|
1,165,000 |
|
1,307,389 |
|
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ICI Wilmington, Inc. |
|
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|
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|
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5.625%, due 12/01/13 |
|
850,000 |
|
880,338 |
|
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International Paper Co. |
|
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|
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6.750%, due 09/01/11 |
|
875,000 |
|
980,991 |
|
||
JPMorgan Chase & Co. |
|
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|
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6.750%, due 02/01/11 |
|
955,000 |
|
1,072,854 |
|
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Kohls Corp. |
|
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|
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6.300%, due 03/01/11 |
|
285,000 |
|
312,239 |
|
||
Kraft Foods, Inc. |
|
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|
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5.625%, due 11/01/11 |
|
760,000 |
|
804,796 |
|
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Kroger Co. |
|
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7.500%, due 04/01/31 |
|
685,000 |
|
818,813 |
|
||
Lincoln National Corp. |
|
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|
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6.200%, due 12/15/11 |
|
390,000 |
|
422,912 |
|
||
Lockheed Martin Corp. |
|
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|
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8.500%, due 12/01/29 |
|
255,000 |
|
348,910 |
|
||
Marathon Oil Corp. |
|
|
|
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|
||
6.125%, due 03/15/12 |
|
325,000 |
|
354,131 |
|
||
Marsh & McLennan Cos., Inc. |
|
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|
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|
||
6.250%, due 03/15/12 |
|
705,000 |
|
737,730 |
|
||
McKesson Corp. |
|
|
|
|
|
||
7.750%, due 02/01/12 |
|
600,000 |
|
690,314 |
|
||
Mellon Funding Corp. |
|
|
|
|
|
||
5.000%, due 12/01/14 |
|
195,000 |
|
197,168 |
|
||
Merck & Co., Inc. |
|
|
|
|
|
||
6.400%, due 03/01/28 |
|
520,000 |
|
566,428 |
|
||
Miller Brewing Co., 144A |
|
|
|
|
|
||
5.500%, due 08/15/13 |
|
350,000 |
|
365,836 |
|
||
Morgan Stanley |
|
|
|
|
|
||
6.750%, due 04/15/11 |
|
1,675,000 |
|
1,878,744 |
|
||
7.250%, due 04/01/32 |
|
355,000 |
|
426,532 |
|
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Motorola, Inc. |
|
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|
|
|
||
7.625%, due 11/15/10 |
|
625,000 |
|
724,977 |
|
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National City Bank |
|
|
|
|
|
||
4.625%, due 05/01/13 |
|
360,000 |
|
356,348 |
|
||
|
|
Face |
|
Value |
|
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Newell Rubbermaid, Inc. |
|
|
|
|
|
||
6.750%, due 03/15/12 |
|
$ |
235,000 |
|
$ |
267,767 |
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News America, Inc., 144A |
|
|
|
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|
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6.200%, due 12/15/34 |
|
810,000 |
|
820,949 |
|
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Northrop Grumman Corp. |
|
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|
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|
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7.125%, due 02/15/11 |
|
425,000 |
|
487,736 |
|
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Occidental Petroleum Corp. |
|
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|
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8.450%, due 02/15/29 |
|
265,000 |
|
358,977 |
|
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Pacific Gas & Electric Co. |
|
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|
|
|
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6.050%, due 03/01/34 |
|
510,000 |
|
529,694 |
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Pitney Bowes, Inc. |
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|
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4.625%, due 10/01/12 |
|
300,000 |
|
303,282 |
|
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Praxair, Inc. |
|
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|
|
|
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6.375%, due 04/01/12 |
|
210,000 |
|
234,450 |
|
||
Progress Energy, Inc. |
|
|
|
|
|
||
7.000%, due 10/30/31 |
|
520,000 |
|
575,885 |
|
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Progressive Corp. |
|
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|
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|
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6.250%, due 12/01/32 |
|
275,000 |
|
294,811 |
|
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PSEG Power LLC |
|
|
|
|
|
||
8.625%, due 04/15/31 |
|
290,000 |
|
385,056 |
|
||
Qwest Capital Funding, Inc. |
|
|
|
|
|
||
7.900%, due 08/15/10 |
|
830,000 |
|
838,300 |
|
||
Rohm & Haas Co. |
|
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|
|
|
||
7.850%, due 07/15/29 |
|
290,000 |
|
378,315 |
|
||
Safeway, Inc. |
|
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|
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|
||
7.250%, due 02/01/31 |
|
435,000 |
|
498,606 |
|
||
SBC Communications, Inc. |
|
|
|
|
|
||
5.875%, due 02/01/12 |
|
800,000 |
|
861,604 |
|
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Sempra Energy |
|
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|
|
|
||
7.950%, due 03/01/10 |
|
480,000 |
|
554,802 |
|
||
SLM Corp. |
|
|
|
|
|
||
5.125%, due 08/27/12 |
|
115,000 |
|
118,239 |
|
||
Sprint Capital Corp. |
|
|
|
|
|
||
8.750%, due 03/15/32 |
|
665,000 |
|
885,985 |
|
||
Target Corp. |
|
|
|
|
|
||
7.000%, due 07/15/31 |
|
305,000 |
|
371,622 |
|
||
Time Warner, Inc. |
|
|
|
|
|
||
7.625%, due 04/15/31 |
|
1,585,000 |
|
1,917,471 |
|
||
Transocean, Inc. |
|
|
|
|
|
||
7.500%, due 04/15/31 |
|
585,000 |
|
720,052 |
|
||
Travelers Property Casualty Corp. |
|
|
|
|
|
||
6.375%, due 03/15/33 |
|
350,000 |
|
359,492 |
|
||
TXU Energy Co. LLC |
|
|
|
|
|
||
7.000%, due 03/15/13 |
|
1,115,000 |
|
1,245,289 |
|
||
Tyson Foods, Inc. |
|
|
|
|
|
||
8.250%, due 10/01/11 |
|
125,000 |
|
148,431 |
|
||
U.S. Bank N.A. |
|
|
|
|
|
||
6.375%, due 08/01/11 |
|
500,000 |
|
555,276 |
|
||
Unilever Capital Corp. |
|
|
|
|
|
||
7.125%, due 11/01/10 |
|
945,000 |
|
1,086,959 |
|
||
Union Oil Co. of California |
|
|
|
|
|
||
7.500%, due 02/15/29 |
|
300,000 |
|
361,302 |
|
||
Union Pacific Corp. |
|
|
|
|
|
||
6.650%, due 01/15/11 |
|
470,000 |
|
525,505 |
|
||
United Technologies Corp. |
|
|
|
|
|
||
6.100%, due 05/15/12 |
|
430,000 |
|
473,136 |
|
||
UST, Inc. |
|
|
|
|
|
||
6.625%, due 07/15/12 |
|
475,000 |
|
530,389 |
|
||
Valero Energy Corp. |
|
|
|
|
|
||
7.500%, due 04/15/32 |
|
470,000 |
|
566,905 |
|
||
Verizon New York, Inc., Series B |
|
|
|
|
|
||
7.375%, due 04/01/32 |
|
1,085,000 |
|
1,244,557 |
|
||
Viacom, Inc. |
|
|
|
|
|
||
6.625%, due 05/15/11 |
|
825,000 |
|
926,357 |
|
||
Wachovia Bank N.A. |
|
|
|
|
|
||
7.800%, due 08/18/10 |
|
1,620,000 |
|
1,902,628 |
|
||
Washington Mutual Bank FA |
|
|
|
|
|
||
5.500%, due 01/15/13 |
|
680,000 |
|
702,239 |
|
||
|
|
Face |
|
Value |
|
||
Washington Mutual Bank FA |
|
|
|
|
|
||
6.875%, due 06/15/11 |
|
$ |
350,000 |
|
$ |
393,872 |
|
Wells Fargo Bank N.A. |
|
|
|
|
|
||
6.450%, due 02/01/11 |
|
1,025,000 |
|
1,139,866 |
|
||
Wendys International, Inc. |
|
|
|
|
|
||
6.200%, due 06/15/14 |
|
310,000 |
|
337,228 |
|
||
Weyerhaeuser Co. |
|
|
|
|
|
||
7.375%, due 03/15/32 |
|
665,000 |
|
788,588 |
|
||
Wyeth |
|
|
|
|
|
||
5.500%, due 03/15/13 |
|
700,000 |
|
727,526 |
|
||
|
|
|
|
83,047,716 |
|
||
|
|
|
|
|
|
||
Asset-Backed Securities 7.51% |
|
|
|
|
|
||
CenterPoint Energy Transition Bond Co. LLC, 01-1, Class A4 |
|
|
|
|
|
||
5.630%, due 09/15/15 |
|
3,200,000 |
|
3,423,192 |
|
||
Conseco Finance Securitizations Corp., 00-2, Class A4 |
|
|
|
|
|
||
8.480%, due 12/01/30 |
|
1,107,774 |
|
1,155,329 |
|
||
Conseco Finance Securitizations Corp., 00-5, Class A4 |
|
|
|
|
|
||
7.470%, due 02/01/32 |
|
669,301 |
|
686,773 |
|
||
Conseco Finance Securitizations Corp., 00-5, Class A5 |
|
|
|
|
|
||
7.700%, due 02/01/32 |
|
1,500,000 |
|
1,494,955 |
|
||
CPL Transition Funding LLC, 02-1, Class A5 |
|
|
|
|
|
||
6.250%, due 01/15/17 |
|
3,000,000 |
|
3,359,068 |
|
||
Small Business Administration, 04-P10B, Class 1 |
|
|
|
|
|
||
4.754%, due 08/10/14 |
|
750,000 |
|
751,288 |
|
||
|
|
|
|
10,870,605 |
|
||
|
|
|
|
|
|
||
Commercial Mortgage-Backed Securities 2.30% |
|
|
|
|
|
||
C.S. First Boston Mortgage Securities Corp., 03-8, Class 5A1 |
|
|
|
|
|
||
6.500%, due 04/25/33 |
|
403,471 |
|
410,838 |
|
||
Morgan Stanley Capital I, 95-GAL1, Class E, 144A |
|
|
|
|
|
||
8.250%, due 08/15/27 |
|
1,202,669 |
|
1,227,004 |
|
||
Wells Fargo Mortgage Backed Securities Trust, 03-18, Class A2 |
|
|
|
|
|
||
5.250%, due 12/25/33 |
|
1,710,147 |
|
1,696,466 |
|
||
|
|
|
|
3,334,308 |
|
||
|
|
|
|
|
|
||
Mortgage & Agency Debt Securities 10.60% |
|
|
|
|
|
||
Federal Home Loan Mortgage Corp. |
|
|
|
|
|
||
3.875%, due 01/12/09 |
|
1,825,000 |
|
1,817,470 |
|
||
5.000%, due 01/30/14 |
|
30,000 |
|
30,008 |
|
||
5.125%, due 07/15/12 |
|
1,300,000 |
|
1,366,721 |
|
||
Federal Home Loan Mortgage Corp., Gold |
|
|
|
|
|
||
5.500%, due 10/01/19 |
|
963,999 |
|
996,321 |
|
||
6.000%, due 10/01/34 |
|
954,267 |
|
986,252 |
|
||
6.500%, due 02/01/17 |
|
330,445 |
|
349,922 |
|
||
Federal National Mortgage Association |
|
|
|
|
|
||
4.375%, due 03/15/13 |
|
785,000 |
|
782,852 |
|
||
5.000%, due 03/01/34 |
|
1,355,147 |
|
1,347,198 |
|
||
5.500%, due 03/01/33 |
|
613,802 |
|
624,075 |
|
||
5.500%, due 09/01/34 |
|
2,903,788 |
|
2,949,687 |
|
||
5.500%, due 11/01/34 |
|
497,320 |
|
505,181 |
|
||
6.000%, due 06/01/23 |
|
320,968 |
|
333,943 |
|
||
6.000%, due 11/01/28 |
|
456,655 |
|
474,084 |
|
||
6.250%, due 02/01/11 |
|
1,300,000 |
|
1,425,210 |
|
||
7.000%, due 03/01/31 |
|
276,228 |
|
294,186 |
|
||
Federal National Mortgage Association Grantor Trust |
|
|
|
|
|
||
6.500%, due 07/25/42 |
|
771,353 |
|
806,546 |
|
||
Federal National Mortgage Association, REMIC |
|
|
|
|
|
||
7.000%, due 06/25/13 |
|
56,812 |
|
59,285 |
|
||
Government National Mortgage Association |
|
|
|
|
|
||
6.500%, due 05/15/29 |
|
184,119 |
|
194,059 |
|
||
|
|
|
|
15,343,000 |
|
||
|
|
|
|
|
|
||
Municipal Notes and Bonds 3.28% |
|
|
|
|
|
||
Illinois State General Obligation Bonds |
|
|
|
|
|
||
5.100%, 06/01/33 |
|
2,350,000 |
|
2,268,902 |
|
||
New Jersey Economic Development Authority Revenue Bonds* |
|
|
|
|
|
||
2.742%, 02/15/18 |
|
5,000,000 |
|
2,482,050 |
|
||
|
|
|
|
4,750,952 |
|
||
|
|
|
Face |
|
Value |
|
||
U.S. Government Obligations 9.75% |
|
|
|
|
|
|
||
U.S. Treasury Bonds |
|
|
|
|
|
|
||
6.250%, due 05/15/30 |
|
|
$ |
1,360,000 |
|
$ |
1,625,997 |
|
6.625%, due 02/15/27 |
|
|
1,100,000 |
|
1,355,879 |
|
||
8.750%, due 05/15/17 |
|
|
465,000 |
|
651,563 |
|
||
U.S. Treasury Notes |
|
|
|
|
|
|
||
2.500%, due 09/30/06 |
|
|
1,505,000 |
|
1,492,007 |
|
||
2.750%, due 07/31/06 |
|
|
705,000 |
|
702,714 |
|
||
3.375%, due 09/15/09 |
|
|
235,000 |
|
232,852 |
|
||
4.000%, due 02/15/14 |
|
|
1,925,000 |
|
1,898,456 |
|
||
5.375%, due 02/15/31 |
|
|
4,615,000 |
|
4,990,329 |
|
||
U.S. Treasury Strips * |
|
|
|
|
|
|
||
1.601%, due 02/15/27 |
|
|
3,620,000 |
|
1,175,722 |
|
||
|
|
|
|
|
14,125,519 |
|
||
Total U.S. Bonds |
|
|
|
|
131,472,100 |
|
||
|
|
|
|
|
|
|
||
International Bonds 6.91% |
|
|
|
|
|
|
||
International Corporate Bonds 4.51% |
|
|
|
|
|
|
||
Canada 0.99% |
|
|
|
|
|
|
||
Burlington Resources Finance Co. |
|
|
|
|
|
|
||
6.680%, due 02/15/11 |
CAD |
|
370,000 |
|
413,530 |
|
||
Canadian National Railway Co. |
|
|
|
|
|
|
||
6.900%, due 07/15/28 |
|
|
285,000 |
|
328,026 |
|
||
Conoco Funding Co. |
|
|
|
|
|
|
||
7.250%, due 10/15/31 |
|
|
275,000 |
|
335,322 |
|
||
Telus Corp. |
|
|
|
|
|
|
||
8.000%, due 06/01/11 |
|
|
305,000 |
|
361,450 |
|
||
|
|
|
|
|
1,438,328 |
|
||
France 0.31% |
|
|
|
|
|
|
||
France Telecom S.A. |
|
|
|
|
|
|
||
8.500%, due 03/01/31 |
EUR |
|
330,000 |
|
447,345 |
|
||
|
|
|
|
|
|
|
||
Luxembourg 0.31% |
|
|
|
|
|
|
||
Telecom Italia Capital |
|
|
|
|
|
|
||
6.375%, due 11/15/33 |
|
|
430,000 |
|
442,125 |
|
||
|
|
|
|
|
|
|
||
Netherlands 0.57% |
|
|
|
|
|
|
||
Deutsche Telekom International Finance BV |
|
|
|
|
|
|
||
8.750%, due 06/15/30 |
|
|
625,000 |
|
825,286 |
|
||
|
|
|
|
|
|
|
||
United Kingdom 2.33% |
|
|
|
|
|
|
||
Abbey National PLC |
|
|
|
|
|
|
||
7.950%, due 10/26/29 |
GBP |
|
750,000 |
|
967,258 |
|
||
Barclays Bank PLC, 144A |
|
|
|
|
|
|
||
8.550%, due 09/29/49 |
|
|
290,000 |
|
353,128 |
|
||
British Telecommunications PLC |
|
|
|
|
|
|
||
8.125%, due 12/15/10 |
|
|
340,000 |
|
408,292 |
|
||
HSBC Holdings PLC |
|
|
|
|
|
|
||
5.250%, due 12/12/12 |
|
|
260,000 |
|
269,533 |
|
||
Royal Bank of Scotland Group PLC |
|
|
|
|
|
|
||
9.118%, due 03/31/49 |
|
|
385,000 |
|
468,941 |
|
||
Vodafone Group PLC |
|
|
|
|
|
|
||
7.875%, due 02/15/30 |
|
|
700,000 |
|
902,587 |
|
||
|
|
|
|
|
3,369,739 |
|
||
Total International Corporate Bonds |
|
|
|
|
6,522,823 |
|
||
|
|
Face |
|
Value |
|
||
Foreign Government Bonds 2.05% |
|
|
|
|
|
||
Mexico 2.05% |
|
|
|
|
|
||
United Mexican States |
|
|
|
|
|
||
8.125%, due 12/30/19 |
|
$ |
2,520,000 |
|
$ |
2,967,300 |
|
|
|
|
|
|
|
||
Sovereign/Supranational Bonds 0.35% |
|
|
|
|
|
||
Pemex Project Funding Master Trust |
|
|
|
|
|
||
8.000%, due 11/15/11 |
|
440,000 |
|
507,100 |
|
||
|
|
|
|
|
|
||
Total International Bonds |
|
|
|
9,997,223 |
|
||
Total Bonds (Cost $132,831,054) |
|
|
|
141,469,323 |
|
||
|
|
Shares |
|
|
|
Short-Term Investment * 1.05% |
|
|
|
|
|
UBS Supplementary Trust U.S. Cash Management Prime Fund** |
|
|
|
|
|
yield of 2.28% |
|
|
|
|
|
(Cost $1,526,914) |
|
1,526,914 |
|
1,526,914 |
|
|
|
|
|
|
|
Total Investments (Cost $134,357,968) 98.75% @ |
|
|
|
142,996,237 |
|
Cash and other assets, less liabilities 1.25% |
|
|
|
1,810,417 |
|
Net Assets 100.00% |
|
|
|
144,806,654 |
|
NOTES TO SCHEDULE OF INVESTMENTS
Aggregate cost for federal income tax purposes was $134,357,968; and net unrealized appreciation consisted of:
Gross unrealized appreciation |
|
9,346,828 |
|
Gross unrealized depreciation |
|
(708,559 |
) |
Net unrealized appreciation |
|
8,638,269 |
|
* |
|
Security is issued by a fund that is advised by UBS Global Asset Management (Americas) Inc., Fort Dearborn Income Securities, Inc.s advisor. |
** |
|
Interest rate reflects yield at December 31, 2004. |
|
|
Reflects rate at December 31, 2004 on variable rate instruments. |
% |
|
Represents a percentage of net assets. |
(a) |
|
Security is illiquid. This security amounted to $459,053 or 0.32% of net assets. |
144A |
|
Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2004 the value of these securities amounted to $10,161,577 or 7.02% of net assets. |
CAD |
|
Canadian Dollar |
EUR |
|
Euro |
GBP |
|
British Pound |
REMIC |
|
Real Estate Mortgage Investment Conduit |
Strips |
|
Bonds that can be subdivided into a series of zero-coupon bonds. |
@ |
|
The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its securities from independent pricing sources and broker-dealers. Independent pricing sources may use reported last sale prices, current market quotations or valuations from computerized matrix systems that derive values based on comparable securities. A matrix system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities. Securities traded in the over-the-counter (OTC) market and listed on The Nasdaq Stock Market, Inc. (Nasdaq) normally are valued at the NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price on the valuation date available prior to valuation. Securities which are listed on U.S. and foreign stock exchanges normally are valued at the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. (UBS Global AM or the Advisor), the investment advisor of the Fund. UBS Global AM is an indirect wholly owned asset management subsidiary of UBS AG, an internationally diversified organization with headquarters in Zurich, Switzerland and operations in many areas of the financial services industry. If a market value is not available from an independent pricing source for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Funds Board of Directors (the Board). The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board determines that this does not represent fair value. |
Industry Diversification
As a Percentage of Net Assets
As of December 31, 2004 (Unaudited)
BONDS |
|
|
|
U.S. BONDS |
|
|
|
U.S. CORPORATE BONDS |
|
|
|
Aerospace & Defense |
|
2.04 |
% |
Airlines |
|
0.32 |
|
Automobiles |
|
3.03 |
|
Beverages |
|
0.52 |
|
Capital Markets |
|
4.10 |
|
Chemicals |
|
1.28 |
|
Commercial Banks |
|
4.92 |
|
Commercial Services & Supplies |
|
0.96 |
|
Communication Equipment |
|
0.50 |
|
Consumer Finance |
|
2.53 |
|
Diversified Financial Services |
|
6.79 |
|
Diversified Telecommunication Services |
|
4.05 |
|
Electric Utilities |
|
2.41 |
|
Energy Equipment & Services |
|
0.50 |
|
Food & Staples Retailing |
|
0.91 |
|
Food Products |
|
1.73 |
|
Gas Utilities |
|
0.38 |
|
Hotels, Restaurants & Leisure |
|
0.23 |
|
Household Durables |
|
0.43 |
|
Insurance |
|
1.41 |
|
IT Services |
|
0.28 |
|
Machinery |
|
0.56 |
|
Media |
|
3.56 |
|
Metals & Mining |
|
0.54 |
|
Multi-Utilities & Unregulated Power |
|
0.79 |
|
Multiline Retail |
|
0.70 |
|
Oil & Gas |
|
3.47 |
|
Paper & Forest Products |
|
1.22 |
|
Personal Products |
|
0.99 |
|
Pharmaceuticals |
|
1.19 |
|
Real Estate |
|
0.84 |
|
Road & Rail |
|
1.92 |
|
Thrifts & Mortgage Finance |
|
0.76 |
|
Tobacco |
|
0.61 |
|
Wireless Telecommunication Services |
|
0.88 |
|
Total U.S. Corporate Bonds |
|
57.35 |
|
Asset-Backed Securities |
|
7.51 |
|
Commercial Mortgage-Backed Securities |
|
2.30 |
|
Mortgage & Agency Debt Securities |
|
10.60 |
|
Municipal Notes and Bonds |
|
3.28 |
|
U.S. Government Obligations |
|
9.75 |
|
Total U.S. Bonds |
|
90.79 |
|
INTERNATIONAL BONDS |
|
|
|
International Corporate Bonds |
|
|
|
Commercial Banks |
|
1.42 |
|
Diversified Telecommunication Services |
|
1.72 |
|
Oil & Gas |
|
0.52 |
|
Road & Rail |
|
0.23 |
|
Wireless Telecommunication Services |
|
0.62 |
|
Total International Corporate Bonds |
|
4.51 |
|
Foreign Government Bonds |
|
2.05 |
|
Sovereign/Supranational Bonds |
|
0.35 |
|
Total International Bonds |
|
6.91 |
|
TOTAL BONDS |
|
97.70 |
|
SHORT-TERM INVESTMENT |
|
1.05 |
|
TOTAL INVESTMENTS |
|
98.75 |
|
CASH AND OTHER ASSETS, LESS LIABILITIES |
|
1.25 |
|
NET ASSETS |
|
100.00 |
% |
1) Transactions with Affiliates
The Fund invests in shares of UBS Supplementary Trust U.S. Cash Management Prime Fund (Supplementary Trust ). The Supplementary Trust is offered as a cash management option only to mutual funds and certain other accounts. Distributions from Supplementary Trust are reflected as interest income. Amounts relating to those investments at December 31, 2004 and for the period then ended are summarized as follows:
Purchases |
|
Sales |
|
Interest |
|
Value |
|
% of Net |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
$ |
11,583,015 |
|
$ |
13,779,101 |
|
$ |
23,274 |
|
$ |
1,526,914 |
|
1.05 |
% |
For more information regarding the Fund's other significant accounting policies, please refer to the Fund's annual report to shareholders dated September 30, 2004.
Item 2. Controls and Procedures.
(a) The registrants principal executive officer and principal financial officer have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (Investment Company Act)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) The registrants principal executive officer and principal financial officer are aware of no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrants last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications of principal executive officer and principal financial officer of registrant pursuant to Rule 30a-2(a) under the Investment Company Act is attached hereto as Exhibit EX-99.CERT.
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.
Fort Dearborn Income Securities, Inc.
By: |
/s/ Joseph A. Varnas |
|
Joseph A. Varnas |
|
President |
|
|
Date: |
March 1, 2005 |
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/ Joseph A. Varnas |
|
Joseph A. Varnas |
|
President |
|
|
Date: |
March 1, 2005 |
By: |
/s/ Joseph T. Malone |
|
Joseph T. Malone |
|
Treasurer |
|
|
Date: |
March 1, 2005 |