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 811-21698
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The Gabelli Global Gold, Natural Resources & Income Trust
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: March 31, 2007
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
First Quarter Report
March 31, 2007
TO OUR SHAREHOLDERS,
The Gabelli Global Gold, Natural Resources & Income Trust's (the "Fund")
net asset value ("NAV") gained 6.18% in the first quarter of 2007, compared with
gains of 0.86%, 1.47%, and 2.95% for the Chicago Board Options Exchange S&P 500
BuyWrite Index, the Lehman Brothers Government/Corporate Bond Index, and the
Amex Energy Select Sector Index, respectively and a loss of 3.44% for the
Philadelphia Gold & Silver Index. The Fund's market price, adjusted for
distributions, was up 9.78% during the first quarter. On March 31, 2007, the
Fund's market price closed at $26.55 on the American Stock Exchange,
representing a premium of 5.61% to its NAV of $25.14 at the end of the quarter.
Enclosed is the investment portfolio as of March 31, 2007.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH MARCH 31, 2007 (A)
-------------------------------------------------
Since
Inception
Quarter 1 Year (03/31/05)
------- ------ ----------
GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NAV TOTAL RETURN (B).................................... 6.18% 17.55% 23.74%
INVESTMENT TOTAL RETURN (C) ............................ 9.78 25.57 24.03
CBOE S&P 500 Buy/Write Index.............................. 0.86 9.73 8.94
Philadelphia Gold & Silver Index.......................... (3.44) (2.00) 22.39
Amex Energy Select Sector Index........................... 2.95 12.49 20.29
Lehman Bros. Gov't/Corporate Bond Index................... 1.47 6.38 4.17
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE.
WHEN SHARES ARE SOLD, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA
PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF THE MOST
RECENT MONTH END. PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT
OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE
CBOE S&P 500 BUY/WRITE INDEX IS AN UNMANAGED BENCHMARK INDEX DESIGNED TO
REFLECT THE RETURN ON A PORTFOLIO THAT CONSISTS OF A LONG POSITION IN THE
STOCKS COMPRISING THE S&P 500 INDEX AND A SHORT POSITION IN A S&P 500 (SPX)
CALL OPTION. THE PHILADELPHIA GOLD & SILVER INDEX IS AN UNMANAGED INDICATOR
OF STOCK MARKET PERFORMANCE OF LARGE NORTH AMERICAN GOLD AND SILVER
COMPANIES, WHILE THE AMEX ENERGY SELECT SECTOR INDEX IS AN UNMANAGED
INDICATOR OF STOCK MARKET PERFORMANCE OF LARGE U.S. COMPANIES INVOLVED IN
THE DEVELOPMENT OR PRODUCTION OF ENERGY PRODUCTS. THE LEHMAN BROTHERS
GOVERNMENT/CORPORATE BOND INDEX IS AN UNMANAGED MARKET VALUE WEIGHTED INDEX
THAT TRACKS THE TOTAL RETURN PERFORMANCE OF FIXED RATE, PUBLICLY PLACED,
DOLLAR DENOMINATED OBLIGATIONS. DIVIDENDS AND INTEREST OR INCOME ARE
CONSIDERED REINVESTED. YOU CANNOT INVEST DIRECTLY IN AN INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NAV PER SHARE
AND REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE AND ARE
NET OF EXPENSES. SINCE INCEPTION RETURN IS BASED ON AN INITIAL NAV OF
$19.06.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE AMERICAN STOCK EXCHANGE AND REINVESTMENT OF DISTRIBUTIONS.
SINCE INCEPTION RETURN IS BASED ON AN INITIAL OFFERING PRICE OF $20.00.
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We have separated the portfolio managers' commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio managers' commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com.
--------------------------------------------------------------------------------
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 97.2%
DIVERSIFIED INDUSTRIAL -- 0.7%
29,700 Greif Inc., Cl. B............. $ 3,053,754
------------
ENERGY AND ENERGY SERVICES -- 35.9%
70,000 Baker Hughes Inc.............. 4,629,100
228,000 BJ Services Co................ 6,361,200
71,000 BP plc, ADR................... 4,597,250
20,000 Chesapeake Energy Corp........ 617,600
54,600 Chevron Corp.................. 4,038,216
65,000 ConocoPhillips (e)............ 4,442,750
147,000 Devon Energy Corp. (e)........ 10,175,340
55,000 Diamond Offshore Drilling Inc. 4,452,250
60,000 Exxon Mobil Corp. (e)......... 4,527,000
247,000 Halliburton Co. (e)........... 7,839,780
120,000 Imperial Oil Ltd.............. 4,448,679
55,000 Marathon Oil Corp............. 5,435,650
174,000 Murphy Oil Corp. (e).......... 9,291,600
120,000 Nabors Industries Ltd.+....... 3,560,400
130,000 Noble Corp. (e)............... 10,228,400
40,000 Oceaneering International Inc.+ 1,684,800
110,000 Petroleo Brasileiro SA, ADR... 10,946,100
150,000 Rowan Companies Inc........... 4,870,500
180,000 Saipem SpA.................... 5,241,855
115,000 Sasol Ltd., ADR............... 3,800,750
150,000 Statoil ASA, ADR.............. 4,062,000
130,000 Suncor Energy Inc............. 9,925,500
60,000 Tesoro Corp................... 6,025,800
65,000 Transocean Inc.+.............. 5,310,500
105,000 Valero Energy Corp. (e)....... 6,771,450
215,000 Weatherford International Ltd.+ 9,696,500
153,000 Williams Companies Inc........ 4,354,380
174,500 XTO Energy Inc. (e)........... 9,564,345
------------
166,899,695
------------
METALS AND MINING -- 60.6%
471,900 Agnico-Eagle Mines Ltd. (e)... 16,714,698
160,000 Alcoa Inc..................... 5,424,000
150,000 Alpha Natural Resources Inc.+. 2,344,500
85,000 Anglo American plc............ 4,477,733
46,000 Anglo Platinum Ltd............ 7,257,151
120,000 AngloGold Ashanti Ltd., ADR... 5,350,800
100,000 Arch Coal Inc................. 3,069,000
321,800 Barrick Gold Corp. (e)........ 9,187,390
170,000 BHP Billiton Ltd., ADR........ 8,236,500
35,000 Cameco Corp................... 1,432,900
110,000 Companhia Vale do Rio Doce, ADR 4,068,900
118,537 Compania de Minas
Buenaventura SA, ADR........ 3,550,183
615,000 Consolidated Minerals Ltd..... 1,243,993
640,000 Eldorado Gold Corp.+.......... 3,741,880
MARKET
SHARES VALUE
------ ------
317,800 Freeport-McMoRan Copper &
Gold Inc. (e) ............. $ 21,035,182
200,000 Gold Fields Ltd............... 3,708,043
582,300 Gold Fields Ltd., ADR (e)..... 10,760,904
444,500 Goldcorp Inc. (e)............. 10,676,890
708,200 Harmony Gold Mining Co. Ltd.,
ADR+........................ 9,843,980
14,571 Highland Gold Mining Ltd.+.... 53,333
528,000 Hochschild Mining plc+........ 3,459,944
342,500 IAMGOLD Corp.................. 2,643,287
406,000 Impala Platinum Holdings Ltd.. 12,760,640
789,300 Ivanhoe Mines Ltd., New York+. 9,061,164
48,000 Ivanhoe Mines Ltd., Toronto+.. 561,282
70,000 Jubilee Mines NL.............. 992,281
100,000 Kazakhmys plc................. 2,304,346
349,656 Kingsgate Consolidated Ltd.... 1,343,808
1,080,900 Kinross Gold Corp.+ (e)....... 14,905,611
4,862,616 Lihir Gold Ltd.+.............. 12,825,973
215,000 Lonmin plc.................... 14,046,478
100,000 Massey Energy Co.............. 2,399,000
325,900 Meridian Gold Inc.+........... 8,320,227
551,338 Newcrest Mining Ltd........... 10,612,436
359,400 Newmont Mining Corp. (e)...... 15,091,206
70,000 Peabody Energy Corp........... 2,816,800
667,600 Randgold Resources Ltd., ADR.. 15,962,316
28,133 Rio Tinto plc, ADR............ 6,408,979
73,400 Teck Cominco Ltd., Cl. B...... 5,117,337
82,357 Xstrata plc................... 4,233,159
191,400 Yamana Gold Inc., New York.... 2,748,504
100,000 Yamana Gold Inc., Toronto..... 1,445,647
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282,238,385
------------
TOTAL COMMON STOCKS........... 452,191,834
------------
PRINCIPAL
AMOUNT
-------
U.S. GOVERNMENT OBLIGATIONS -- 2.8%
$13,170,000 U.S. Treasury Bills,
5.030% to 5.153%++,
04/16/07 to 09/06/07........ 13,111,859
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $374,414,669)....................... $465,303,693
============
--------------
Aggregate book cost.............. $374,414,669
============
Gross unrealized appreciation.... $ 93,212,792
Gross unrealized depreciation.... (2,323,768)
------------
Net unrealized appreciation
(depreciation) ................ $ 90,889,024
============
See accompanying notes to schedule of investments.
2
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS SOLD SHORT -- (0.7)%
DIVERSIFIED INDUSTRIAL -- (0.7)%
(29,700) Greif Inc., Cl. A............. $ (3,299,967)
============
TOTAL COMMON STOCKS SOLD SHORT
(Total Proceeds $2,116,995). $ (3,299,967)
============
OPTION CONTRACTS WRITTEN -- (2.8)%
NUMBER OF EXPIRATION DATE/
CONTRACTS EXERCISE PRICE
--------- -------------
PUT OPTIONS WRITTEN -- (0.0%)
399 GlobalSantaFe Corp... May 07/62.50 $ 117,705
============
TOTAL PUT OPTIONS WRITTEN
(Premiums received $117,045) ... $ 117,705
============
CALL OPTIONS WRITTEN -- (2.8)%
2,419 Agnico-Eagle Mines
Ltd. .............. Apr. 07/40 $ 48,380
2,300 Agnico-Eagle Mines
Ltd. .............. May 07/40 184,000
80 Alcoa Inc............ Jul. 07/35 14,400
1,520 Alcoa Inc............ Jan. 09/40 334,400
85 Anglo American plc(b) Jun. 07/3000 105,796
500 AngloGold Ashanti Ltd.,
ADR ............... Apr. 07/45 67,500
700 AngloGold Ashanti Ltd.,
ADR ............... Apr. 07/50 7,000
1,000 Arch Coal Inc........ Jul. 07/30 310,000
200 Baker Hughes Inc..... Apr. 07/65 44,000
500 Baker Hughes Inc..... Apr. 07/70 27,500
359 Barrick Gold Corp.... Apr. 07/30 7,180
1,500 Barrick Gold Corp.... Apr. 07/32.50 11,250
1,359 Barrick Gold Corp.... Jul. 07/32.50 81,540
500 BHP Billiton Ltd.,
ADR ............... May 07/47.50 132,500
1,200 BHP Billiton Ltd.,
ADR ............... Nov. 07/50 504,000
980 BJ Services Co....... Apr. 07/30 38,220
400 BJ Services Co....... May 07/30 32,000
500 BJ Services Co....... Jul. 07/30 75,000
400 BJ Services Co....... Jul. 07/32.50 34,000
500 BP plc, ADR.......... Apr. 07/60 258,500
210 BP plc, ADR.......... Jul. 07/65 57,750
350 Cameco Corp.......... Apr. 07/40 60,550
200 Chesapeake Energy
Corp. ............. May 07/32.50 11,000
250 Chevron Corp......... Apr. 07/70 108,250
296 Chevron Corp......... Apr. 07/75 26,640
500 Companhia Vale do
Rio Doce, ADR .....Jun. 07/37.50 110,000
600 Companhia Vale do
Rio Doce, ADR .....Jun. 07/40 72,600
800 Compania de Minas
Buenaventura SA,
ADR................ Jun. 07/30 164,000
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- ------------- ------
650 ConocoPhillips....... May 07/70 $ 123,500
1,200 Devon Energy Corp.... Apr. 07/70 162,000
70 Devon Energy Corp.... Apr. 07/75 2,100
200 Devon Energy Corp.... May 07/70 52,000
500 Diamond Offshore
Drilling Inc. .... May 07/80 210,000
50 Diamond Offshore
Drilling Inc. .... Jun. 07/85 13,875
4,000 Eldorado Gold
Corp.(a) .......... May 07/7 138,588
600 Exxon Mobil Corp..... May 07/75 159,000
2,979 Gold Fields Ltd., ADR Apr. 07/20 44,685
1,000 Gold Fields Ltd., ADR May 07/20 40,000
1,844 Gold Fields Ltd., ADR Jul. 07/20 165,960
2,000 Gold Fields Ltd., ADR Oct. 07/20 300,000
2,200 Goldcorp Inc......... Apr. 07/27.50 22,000
2,000 Goldcorp Inc......... Apr. 07/30 10,000
245 Goldcorp Inc......... Jul. 07/30 12,250
1,270 Halliburton Co....... Apr. 07/35 12,700
1,200 Halliburton Co....... May 07/35 30,000
2,350 Harmony Gold
Mining Co. Ltd.,
ADR................ Apr. 07/15 35,250
4,732 Harmony Gold
Mining Co. Ltd.,
ADR................ May 07/15 189,280
1,925 IAMGOLD Corp.(a)..... Apr. 07/10 16,674
1,500 IAMGOLD Corp.(a)..... May 07/11 19,489
600 Imperial Oil Ltd.(a). May 07/44 55,868
600 Imperial Oil Ltd.(a). May 07/46 24,686
1,600 Ivanhoe Mines Ltd.... Jun. 07/10 308,000
6,773 Ivanhoe Mines Ltd.... Jun. 07/12.50 440,245
2,000 Kinross Gold Corp.... May 07/12.50 320,000
6,498 Kinross Gold Corp.... May 07/15 227,430
2,311 Kinross Gold Corp.... Aug. 07/15 213,768
2,900 Lihir Gold Ltd.(c)... May 07/3.43 281,567
550 Marathon Oil Corp.... May 07/100 203,500
442 Meridian Gold Inc.... Apr. 07/25 50,830
1,442 Meridian Gold Inc.... Apr. 07/30 10,815
1,000 Meridian Gold Inc.... Jul. 07/32.50 100,000
375 Meridian Gold Inc.... Jul. 07/35 10,313
1,740 Murphy Oil Corp...... Apr. 07/55 137,460
1,200 Nabors Industries
Ltd. .............. May 07/32.50 42,000
2,494 Newmont Mining Corp.. May 07/47.50 74,820
1,100 Newmont Mining Corp.. Jun. 07/47.50 71,500
200 Noble Corp........... Sep. 07/80 142,000
800 Noble Corp........... Jan. 08/80 716,000
400 Oceaneering
International Inc.. May 07/45 40,000
700 Peabody Energy Corp.. Jun. 07/45 63,000
1,100 Petroleo Brasileiro
SA, ADR ........... Apr. 07/100 280,500
See accompanying notes to schedule of investments.
3
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- ------------- ------
OPTION CONTRACTS WRITTEN (CONTINUED)
CALL OPTIONS WRITTEN (CONTINUED)
3,914 Randgold Resources
Ltd., ADR ......... Apr. 07/22.50 $ 675,165
2,762 Randgold Resources
Ltd., ADR ......... Jun. 07/25 338,345
1,010 Rowan Companies Inc.. Apr. 07/35 17,675
490 Rowan Companies Inc.. Apr. 07/37.50 3,675
360 Saipem SpA(d)........ May 07/20 233,238
290 Sasol Ltd., ADR...... Apr. 07/35 11,600
50 Sasol Ltd., ADR...... May 07/30 18,500
810 Sasol Ltd., ADR...... Jun. 07/40 16,200
500 Statoil ASA, ADR..... Apr. 07/25 113,750
850 Statoil ASA, ADR..... Apr. 07/30 8,500
150 Statoil ASA, ADR..... May 07/25 35,625
844 Suncor Energy Inc.... Apr. 07/75 227,880
456 Suncor Energy Inc.... May 07/75 196,080
509 Teck Cominco Ltd.,
Cl. B(a) .......... Apr. 07/86 19,840
225 Teck Cominco Ltd.,
Cl. B(a) .......... May 07/95 4,872
600 Tesoro Corp.......... May 07/90 780,000
350 Transocean Inc....... Apr. 07/80 115,500
300 Transocean Inc....... May 07/85 66,000
180 Valero Energy Corp... Apr. 07/62.50 54,000
435 Valero Energy Corp... May 07/62.50 178,350
435 Valero Energy Corp... Jun. 07/65 153,120
1,000 Weatherford
International Ltd.. Apr. 07/45 135,000
1,150 Weatherford
International Ltd.. May 07/45 287,500
1,000 Williams Companies
Inc. .............. May 07/27.50 183,000
530 Williams Companies
Inc. ............. May 07/30 27,825
500 XTO Energy Inc....... Apr. 07/50 250,000
1,245 XTO Energy Inc....... May 07/55 273,900
924 Yamana Gold Inc...... Apr. 07/15 23,100
1,000 Yamana Gold Inc.(a).. Jun. 07/16 147,250
990 Yamana Gold Inc...... Jul. 07/15 118,800
------------
TOTAL CALL OPTIONS WRITTEN
(Premiums received $12,505,367) $ 13,215,899
============
--------------
Aggregate premiums .............. $ 14,739,407
============
Gross unrealized appreciation.... $ 2,580,728
Gross unrealized depreciation.... (4,474,892)
------------
Net unrealized appreciation
(depreciation) ................ $ (1,894,164)
============
--------------
(a) Exercise price denoted in Canadian dollars.
(b) Exercise price denoted in British pounds.
(c) Exercise price denoted in Australian dollars.
(d) Exercise price denoted in Euros.
(e) Securities, or a portion thereof, with a value of $116,082,004 are
pledged as collateral for short sales and options written.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
% OF
MARKET MARKET
VALUE VALUE
----- -----
GEOGRAPHIC DIVERSIFICATION
LONG POSITIONS
North America..................... 57.7% $268,426,959
Europe............................ 13.9 64,847,392
South Africa...................... 11.5 53,482,267
Latin America..................... 9.3 43,292,083
Asia/Pacific ..................... 7.6 35,254,992
------ ------------
100.0% $465,303,693
====== ============
SHORT POSITIONS
North America..................... (2.3)% $(10,744,054)
Latin America..................... (0.4) (2,131,100)
Europe............................ (0.4) (1,826,670)
Asia/Pacific ..................... (0.2) (1,035,772)
South Africa...................... (0.2) (895,975)
------ ------------
(3.5)% $(16,633,571)
====== ============
See accompanying notes to schedule of investments.
4
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
1. SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall determine in good faith to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC.
Portfolio securities primarily traded on a foreign market are generally
valued at the preceding closing values of such securities on the relevant
market, but may be fair valued pursuant to procedures established by the Board
if market conditions change significantly after the close of the foreign market
but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of 60 days or less that are not
credit impaired are valued at amortized cost, unless the Board determines such
amount does not reflect the securities' fair value, in which case these
securities will be fair valued as determined by the Board. Debt instruments
having a maturity greater than 60 days for which market quotations are readily
available are valued at the average of the latest bid and asked prices. If there
were no asked prices quoted on such day, the security is valued using the
closing bid price.
Securities and assets for which market quotations are not readily
available are fair valued as determined by the Board.
2. SWAP AGREEMENTS. The Fund may enter into equity swap transactions. The use of
equity swaps is a highly specialized activity that involves investment
techniques and risks different from those associated with ordinary portfolio
security transactions. An equity swap is a swap where a set of future cash flows
are exchanged between two counterparties. One of these cash flow streams will
typically be based on a reference interest rate combined with the performance of
a notional value of shares of a stock. The other will be based on the
performance of the shares of a stock. There is no assurance that the swap
contract counterparties will be able to meet their obligations pursuant to the
swap contracts, or that, in the event of default, the Fund will succeed in
pursuing contractual remedies. The Fund thus assumes the risk that it may be
delayed in or prevented from obtaining payments owed to it pursuant to the swap
contracts. The creditworthiness of the swap contract counterparties is closely
monitored in order to minimize the risk. Depending on the general state of
short-term interest rates and the returns of the Fund's portfolio securities at
that point in time, such a default could negatively affect the Fund's ability to
make dividend payments for the common shares. In addition, at the time an equity
swap transaction reaches its scheduled termination date, there is a risk that
the Fund will not be able to obtain a replacement transaction or that the terms
of the replacement will not be as favorable as on the expiring transaction. If
this occurs, it could have a negative impact on the Fund's ability to make
dividend payments.
The use of derivative instruments involves, to varying degrees, elements
of market and counterparty risk in excess of the amount recognized below. The
change in value of swaps, including the accrual of periodic amounts of interest
to be paid or received on swaps is reported as unrealized appreciation or
depreciation.
The Fund has entered into equity swaps with Morgan Stanley. Details of the
swaps at March 31, 2007 are as follows:
NET
NOTIONAL EQUITY SECURITY INTEREST RATE/ TERMINATION UNREALIZED
AMOUNT RECEIVED EQUITY SECURITY PAID DATE APPRECIATION
-------- -------------- -------------------- ---------- ------------
$1,874,467 (10,000 Shares) Market Value 3 Month LIBOR
Appreciation plus 45 bps plus 08/06/07 $1,970,296
1,838,006 (10,000 Shares) on MMX Market Value
Mineraco e Depreciation on 08/06/07 2,007,074
5,394,698 (16,700 Shares) Metalicos SA MMX Mineraco e
Metalicos SA 08/06/07 1,033,637
----------
$5,011,007
==========
5
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Gold, Natural Resources & Income
Trust ("Fund") to automatically reinvest dividends payable to common
shareholders. As a "registered" shareholder you automatically become a
participant in the Fund's Automatic Dividend Reinvestment Plan (the "Plan"). The
Plan authorizes the Fund to issue common shares to participants upon an income
dividend or a capital gains distribution regardless of whether the shares are
trading at a discount or a premium to net asset value. All distributions to
shareholders whose shares are registered in their own names will be
automatically reinvested pursuant to the Plan in additional shares of the Fund.
Plan participants may send their share certificates to American Stock Transfer
("AST") to be held in their dividend reinvestment account. Registered
shareholders wishing to receive their distributions in cash must submit this
request in writing to:
The Gabelli Global Gold, Natural Resources & Income Trust
c/o American Stock Transfer
6201 15th Avenue
Brooklyn, NY 11219
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan or requesting a copy of the terms of the
Plan may contact AST at (888) 422-3262.
If your shares are held in the name of a broker, bank, or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your distributions will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of common shares distributed to participants in the Plan in
lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Fund's common shares is equal to or exceeds net
asset value at the time shares are valued for purposes of determining the number
of shares equivalent to the cash dividends or capital gains distribution,
participants are issued common shares valued at the greater of (i) the net asset
value as most recently determined or (ii) 95% of the then current market price
of the Fund's common shares. The valuation date is the dividend or distribution
payment date or, if that date is not an American Stock Exchange ("Amex") trading
day, the next trading day. If the net asset value of the common shares at the
time of valuation exceeds the market price of the common shares, participants
will receive common shares from the Fund valued at market price. If the Fund
should declare a dividend or capital gains distribution payable only in cash,
AST will buy common shares in the open market, or on the Amex, or elsewhere, for
the participants' accounts, except that AST will endeavor to terminate purchases
in the open market and cause the Fund to issue shares at net asset value if,
following the commencement of such purchases, the market value of the common
shares exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders
to increase their investment in the Fund. In order to participate in the
Voluntary Cash Purchase Plan, shareholders must have their shares registered in
their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to AST for investments in the Fund's common shares at
the then current market price. Shareholders may send an amount from $250 to
$10,000. AST will use these funds to purchase shares in the open market on or
about the 1st and 15th of each month. AST will charge each shareholder who
participates a pro rata share of the brokerage commissions. Brokerage charges
for such purchases are expected to be less than the usual brokerage charge for
such transactions. It is suggested that any voluntary cash payments be sent to
American Stock Transfer, 6201 15th Avenue, Brooklyn, NY 11219 such that AST
receives such payments approximately 10 days before the investment date. Funds
not received at least five days before the investment date shall be held for
investment until the next purchase date. A payment may be withdrawn without
charge if notice is received by AST at least 48 hours before such payment is to
be invested.
SHAREHOLDERS WISHING TO LIQUIDATE SHARES HELD AT AST must do so in writing or
by telephone. Please submit your request to the above mentioned address or
telephone number. Include in your request your name, address, and account
number. The cost to liquidate shares is $1.00 per transaction as well as the
brokerage commission incurred. Brokerage charges are expected to be less than
the usual brokerage charge for such transactions.
For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Fund.
The Fund reserves the right to amend or terminate the Plan as applied to any
voluntary cash payments made and any dividend or distribution paid subsequent to
written notice of the change sent to the members of the Plan at least 90 days
before the record date for such dividend or distribution. The Plan also may be
amended or terminated by AST on at least 90 days' written notice to participants
in the Plan.
6
[FLAG GRAPHIC OMITTED]
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES OFFICERS
Anthony J. Colavita Bruce N. Alpert
ATTORNEY-AT-LAW, PRESIDENT
ANTHONY J. COLAVITA, P.C.
Carter W. Austin
James P. Conn VICE PRESIDENT
FORMER MANAGING DIRECTOR &
CHIEF INVESTMENT OFFICER, Peter D. Goldstein
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. CHIEF COMPLIANCE OFFICER
Mario d'Urso Molly A.F. Marion
CHAIRMAN, MITTEL CAPITAL MARKETS SPA ASSISTANT VICE PRESIDENT AND OMBUDSMAN
Vincent D. Enright James E. McKee
FORMER SENIOR VICE PRESIDENT & SECRETARY
CHIEF FINANCIAL OFFICER,
KEYSPAN CORP. Agnes Mullady
TREASURER
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER, INVESTMENT ADVISER
AMERICAN GAMING ASSOCIATION Gabelli Funds, LLC
One Corporate Center
Michael J. Melarkey Rye, New York 10580-1422
ATTORNEY-AT-LAW,
AVANSINO, MELARKEY, KNOBEL & MULLIGAN CUSTODIAN
Mellon Trust of New England, N.A.
Salvatore M. Salibello
CERTIFIED PUBLIC ACCOUNTANT, COUNSEL
SALIBELLO & BRODER, LLP Skadden, Arps, Slate, Meagher & Flom LLP
Anthonie C. van Ekris TRANSFER AGENT AND REGISTRAR
CHAIRMAN, BALMAC INTERNATIONAL, INC. American Stock Transfer and Trust Company
Salvatore J. Zizza STOCK EXCHANGE LISTING
CHAIRMAN, ZIZZA & CO., LTD. Common
--------
Amex-Symbol: GGN
Shares Outstanding: 18,051,745
The Net Asset Value per share
appears in the Publicly Traded
Funds column, under the heading
"Specialized Equity Funds," in
Monday's The Wall Street Journal.
It is also listed in Barron's
Mutual Funds/Closed End Funds
section under the heading
"Specialized Equity Funds."
The Net Asset Value per share may
be obtained each day by calling
(914) 921-5070.
--------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM, or e-mail us at: closedend@gabelli.com
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may, from time to time, purchase
its common shares in the open market when the Fund's shares are trading at a
discount of 7.5% or more from the net asset value of the shares.
--------------------------------------------------------------------------------
THE GABELLI GLOBAL GOLD, NATURAL
RESOURCES & INCOME TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
First Quarter Report
March 31, 2007
GGN 1Q/2007
ITEM 2. CONTROLS AND PROCEDURES.
(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") (17 CFR 270.30a-3(c))) are effective,
as of a date within 90 days of the filing date of the report that
includes the disclosure required by this paragraph, based on their
evaluation of these controls and procedures required by Rule
30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules
13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934,
as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(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 (17 CFR 270.30a-3(d)) 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 and Section 302 of
the Sarbanes-Oxley Act of 2002 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.
(Registrant) The Gabelli Global Gold, Natural Resources & Income Trust
--------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date May 22, 2007
----------------------------------------------------------------------------
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 (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date May 22, 2007
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady, Principal Financial Officer & Treasurer
Date May 22, 2007
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.