fp0011867_nq.htm
 
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 811-22843
 
Center Coast MLP & Infrastructure Fund
(Exact name of registrant as specified in charter)

1100 Louisiana Street
Suite 5025
Houston, TX 77002
(Address of principal executive offices) (Zip code)

Dan C. Tutcher
Center Coast Capital Advisors, LP
1100 Louisiana Street
Suite 5025
Houston, TX 77002
(Name and address of agent for service)

Registrant's telephone number, including area code: (713) 759-1400

Date of fiscal year end: November 30

Date of reporting period: August 31, 2014
 
 
 
 
 
ITEM 1. SCHEDULE OF INVESTMENTS.

The Schedule(s) of Investments is attached herewith.
 
Center Coast MLP & Infrastructure Fund
Schedule of Investments
August 31, 2014 (unaudited)
 
Number of
Shares
      
Value
  
           
   
COMMON STOCK - 21.9%
      
   
Diversified - 9.0%
      
  300,707  
Kinder Morgan Management LLC 1,2,3
   $ 29,385,087  
            29,385,087  
               
     
GP C-Corp - 9.2%
        
  103,383  
Kinder Morgan, Inc. 1,2
     4,162,200  
  325,558  
Plains GP Holdings LP - Class A 1
     10,046,720  
  21,971  
Targa Resources Corp.
     3,066,053  
  219,669  
Williams Cos., Inc. 1,2
     13,057,125  
            30,332,098  
               
     
Other - 1.2%
        
  60,402  
Seadrill Partners LLC* 1
     2,085,681  
  66,172  
Transocean Partners LLC* 3
     1,886,564  
            3,972,245  
               
     
Shipping - 2.5%
        
  257,696  
Dynagas LNG Partners LP*
     6,233,666  
  74,894  
Hoegh LNG Partners LP* 3
     1,939,006  
            8,172,672  
               
     
Total Common Stock
        
     
(Cost $56,310,742)
   $ 71,862,102  
               
     
MASTER LIMITED PARTNERSHIP SHARES - 110.3%
        
     
Compression - 1.5%
        
  190,531  
USA Compression Partners LP
     4,984,291  
            4,984,291  
               
     
Diversified - 28.7%
        
  269,037  
Enbridge Energy Partners LP 1
     9,771,424  
  587,528  
Enterprise Products Partners LP 1,2
     23,871,263  
  418,007  
ONEOK Partners LP 1,2
     24,842,156  
  337,843  
Targa Resources Partners LP 1,2
     25,135,519  
  195,739  
Williams Partners LP 1
     10,376,124  
     
 
     93,996,486  
               
     
Exploration & Production - 3.0%
        
  134,896  
Linn Energy LLC 2
     4,278,901  
  244,172  
Memorial Production Partners LP
     5,713,625  
            9,992,526  
               
     
Gas Gathering & Processing - 20.8%
        
  307,643  
Access Midstream Partners LP 1
     19,796,827  
  139,403  
Crestwood Midstream Partners LP 1
     3,256,454  
  117,815  
Enable Midstream Partners LP 1
     3,019,599  
  314,795  
EnLink Midstream Partners LP 1
     9,755,497  
  136,326  
Midcoast Energy Partners LP 1
     3,067,335  
  65,785  
QEP Midstream Partners LP
     1,710,410  
  65,776  
Summit Midstream Partners LP 1
     3,636,097  
  310,249  
Western Gas Partners LP 1
     24,041,195  
            68,283,414  
               
     
Gas Transportation & Storage - 22.8%
        
  684,921  
El Paso Pipeline Partners LP 1,2
     28,465,317  
  101,403  
EQT Midstream Partners LP 1
     9,885,778  
  183,198  
Spectra Energy Partners LP 1
     10,440,454  
  98,791  
Tallgrass Energy Partners LP
     4,228,255  
  370,117  
TC Pipelines LP 1
     21,696,259  
            74,716,063  
               
     
GP Partnership - 2.1%
        
  116,518  
Western Gas Equity Partners LP
     6,985,254  
            6,985,254  
 
 
 
 
 
Center Coast MLP & Infrastructure Fund
Schedule of Investments
August 31, 2014 (unaudited) (continued)
 
Number of
Shares
      
Value
  
           
   
Mature / Large Cap Liquids Transportation & Storage - 29.7%
      
  276,301  
Buckeye Partners LP 1
   $ 21,827,779  
  172,267  
Magellan Midstream Partners LP 1
     14,458,369  
  405,979  
Plains All American Pipeline LP 1,2
     24,330,321  
  319,672  
Sunoco Logistics Partners LP 1
     15,817,371  
  296,033  
Tesoro Logistics LP 1
     20,805,199  
            97,239,039  
               
     
Other - 1.3%
        
  135,880  
Westlake Chemical Partners LP 3
     4,125,317  
            4,125,317  
               
     
Small-cap / High Growth Liquids Transportation & Storage - 0.4%
        
  18,724  
Rose Rock Midstream LP
     1,141,977  
            1,141,977  
               
     
Total Master Limited Partnership Shares
        
     
(Cost $286,189,045)
   $ 361,464,367  
 
 Principal
Amount
      
Value
  
     
Short-Term Investments - 3.1%
        
$ 10,127,988  
UMB Money Market Fiduciary, 0.01% 4
   $ 10,127,988  
     
Total Short-Term Investments
     10,127,988  
     
(Cost $10,127,988)
        
               
     
Total Investments - 135.3%
        
     
(Cost $352,627,775)
     443,454,457  
     
Liabilities in Excess of Other Assets - (35.3)%
     (115,631,400 )
     
Total Net Assets - 100%
   $ 327,823,057  
 
Number of Contracts
      
Value
  
     
Written Option Contracts- (0.0)% **
        
     
Call Options - (0.0)% **
        
     
Midcoast Energy Partners LP
        
  (395 )
  Exercise Price: $22.50, Expiration Date: September 20, 2014
   $ (22,713 )
     
Total Call Options
        
     
(proceeds $7,075)
     (22,713 )
               
               
     
Put Options - (0.0)% **
        
     
Crestwood Midstream Partners LP
        
  (659 )
  Exercise Price: $20, Expiration Date: September 20, 2014
     (8,237 )
     
Phillips 66 Partners LP
        
  (632 )
  Exercise Price: $65, Expiration Date: September 20, 2014
     (28,440 )
     
Western Refining Logistics LP
        
  (1,580 )
  Exercise Price: $30, Expiration Date: September 20, 2014
     (39,500 )
     
Total Put Options
        
     
(proceeds $188,546)
     (76,177 )
               
     
Total Written Option Contracts
        
     
(proceeds $195,621)
   $ (98,890 )
 
LLC - Limited Liability Company
LP - Limited Partnership

1
All or a portion of the security has been pledged as collateral with the Fund's line of credit agreement. As of August 31, 2014, the total value of securities pledged as collateral for the line of credit agreement was $273,898,863.
2
All or a portion of this security has been pledged as collateral for written option contracts.  As of August 31, 2014 the total value of securities pledged as collateral for written options contracts was $23,113,210.
3
Non-income producing security.
4
The rate quoted is the annualized seven-day yield of the Fund at the period end.

*
Foreign security denominated in U.S. Dollars.
**
Rounds to less than 0.05%
 
 
 
 
 
Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement.

Under Fair Value Measurements and Disclosures, various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad Levels as described below:

 
·
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
 
·
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
 
·
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.

In addition, the Fund has adopted Accounting Standards Update No. 2011-04 Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs which amends Fair Value Measurements and Disclosures to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and International Financial Reporting Standards. Enhanced disclosure is required to detail any transfers in to and out of Level 1 and Level 2 measurements and Level 2 and Level 3 measurements and the reasons for the transfers.
 
 
 
 
 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the fair valuation levels, as of August 31, 2014:
 
Assets
   
Level 1
     
Level 2*
     
Level 3*
    
Total
  
 Common Stock
   $ 71,862,102     $ -     $ -     $ 71,862,102  
 Master Limited Partnerships1
   $ 361,464,367     $ -     $ -     $ 361,464,367  
 Short-Term Investments
      10,127,988        -        -        10,127,988  
Total Assets
   $ 443,454,457     $ -     $ -     $ 443,454,457  
                                 
Liabilities
  
Level 1
    
Level 2*
    
Level 3*
    
Total
  
 Written Call Options
   $ (22,713 )   $ -     $ -     $ (22,713 )
 Written Put Options
    $ (76,177 )    $ -      $ -      $ (76,177 )
Total Liabilities
   $ (98,890 )   $ -     $ -     $ (98,890 )

1
All Master Limited Partnerships held by the Fund are Level 1 securities. For a detailed break-out of Master Limited Partnerships by major industry classification, please refer to the Schedule of Investments.

*
The Fund did not hold any Level 2 & 3 securities at period end.

Transfers are recognized at the end of the reporting period. There were no transfers during the period.

At August 31, 2014, gross unrealized appreciation and depreciation of investments based on cost for federal income tax purposes were as follows:

Cost of investments
   $ 347,393,311  
         
Gross unrealized appreciation
   $ 96,120,339  
Gross unrealized depreciation
     (59,193 )
         
Net unrealized appreciation (depreciation) on investments
   $ 96,061,146  

The difference between cost amounts for financial statement and federal income tax purposes is due primarily to income/(loss) from Master Limited Partnership (“MLP”) K-1s, which is treated as an increase/(decrease) in cost basis of the MLP shares held, and timing differences in recognizing certain gains and losses in security transactions.
 
 
 
 
 
ITEM 2. CONTROLS AND PROCEDURES.

(a)    The registrant's principal executive and principal financial officers 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 date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(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 pursuant to Rule 30a-2(a) under the 1940 Act, for the Principal Executive Officer and Principal Financial Officer, are attached hereto.
 
 
 
 
 
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.

Center Coast MLP & Infrastructure Fund
  
     
By :
 /s/ Dan C. Tutcher  
 
Dan C. Tutcher, President and Chief Executive Officer
  
 
(Principal Executive Officer)
  
     
Date
October 16, 2014
  

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/ Dan C. Tutcher
  
 
Dan C. Tutcher, President and Chief Executive Officer
  
 
(Principal Executive Officer)
  
     
Date
October 16, 2014
  

By:
/s/ William H. Bauch
  
 
William H. Bauch, Treasurer and Chief Financial Officer
  
 
(Principal Financial Officer)
  
     
Date
October 16, 2014