UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21698
The Gabelli Global Gold, Natural Resources & Income Trust
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrant’s telephone number, including area code: 1-800-422-3554
Date of
fiscal year end: December 31
Date of
reporting period: June 30, 2010
Form N-CSR is to be used by management investment companies to file reports with the Commission not
later than 10 days after the transmission to stockholders of any report that is required to be
transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR
270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission
will make this information public. A registrant is not required to respond to the collection of
information contained in Form N-CSR 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 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. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
The Gabelli Global Gold, Natural Resources & Income Trust
Semi-Annual Report – June 30, 2010
Semi-Annual Report – June 30, 2010
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| Caesar Bryan | Barbara G. Marcin, CFA | Vincent Roche |
To Our Shareholders,
The Gabelli Global Gold, Natural Resources & Income Trust’s (the “Fund”) net asset value (“NAV”)
total return was (2.2)% during the semi-annual period ended June 30, 2010, compared with returns of
(9.3)% and 6.0% for the Chicago Board Options Exchange (“CBOE”) S&P 500 Buy/Write Index and the
Philadelphia Gold & Silver Index, respectively. The total return for the Fund’s publicly traded
shares was 1.1% during the first half of the year. For the one year period ended June 30, 2010, the
Fund’s NAV total return was 26.7% and the total return for the Fund’s publicly traded shares was
29.0%, compared with returns of 6.1% and 28.6% for the CBOE S&P 500 Buy/Write Index and the
Philadelphia Gold & Silver Index, respectively. On June 30, 2010, the Fund’s NAV per share was
$14.76, while the price of the publicly traded shares closed at $15.67 on the NYSE Amex.
Enclosed are the financial statements and the investment portfolio as of June 30, 2010.
Comparative Results
Average Annual Returns through June 30, 2010 (a) (Unaudited)
| Since | ||||||||||||||||||||||||
| Year to | Inception | |||||||||||||||||||||||
| Quarter | Date | 1 Year | 3 Year | 5 Year | (03/31/05) | |||||||||||||||||||
Gabelli Global Gold, Natural Resources & Income Trust |
||||||||||||||||||||||||
NAV Total Return (b) |
(3.96 | )% | (2.20 | )% | 26.66 | % | (9.32 | )% | 3.63 | % | 4.22 | % | ||||||||||||
Investment Total Return (c) |
(8.74 | ) | 1.12 | 28.95 | (7.27 | ) | 4.56 | 4.22 | ||||||||||||||||
CBOE
S&P 500 Buy/Write Index |
(10.26 | ) | (9.29 | ) | 6.05 | (5.74 | ) | 0.36 | 0.42 | |||||||||||||||
Philadelphia Gold & Silver Index |
7.69 | 5.95 | 28.59 | 10.19 | 14.91 | 14.04 | ||||||||||||||||||
Amex Energy Select Sector Index |
(13.19 | ) | (11.97 | ) | 5.63 | (8.79 | ) | 3.95 | 4.54 | |||||||||||||||
Barclays Capital Government/Corporate Bond Index |
3.88 | 5.49 | 9.65 | 7.37 | 5.26 | 5.68 | ||||||||||||||||||
| (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 of 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 in 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 Barclays Capital 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 income are considered reinvested. You cannot invest directly in an index. | ||
| (b) | Total returns and average annual returns reflect changes in the 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 NYSE Amex and reinvestment of distributions. Since inception return is based on an initial offering price of $20.00. |
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/funds.
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
Summary of Portfolio Holdings (Unaudited)
Summary of Portfolio Holdings (Unaudited)
The following table presents portfolio holdings as a percent of total investments as of June 30,
2010:
Long Positions |
||||
Metals and Mining |
56.4 | % | ||
Energy and Energy Services |
30.1 | % | ||
Exchange Traded Funds |
1.1 | % | ||
U.S. Government Obligations |
12.4 | % | ||
| 100.0 | % | |||
Short Positions |
||||
Call Options Written |
(2.7 | )% | ||
Put Options Written |
(1.3 | )% | ||
| (4.0 | )% | |||
The Fund files a complete schedule of portfolio holdings with the Securities and Exchange
Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q, the last
of which was filed for the quarter ended March 31, 2010. Shareholders may obtain this information
at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is
available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s
Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
Proxy Voting
The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June
30th, no later than August 31st of each year. A description of the Fund’s proxy voting policies,
procedures, and how the Fund voted proxies relating to portfolio securities is available without
charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds
at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.
Shareholder Meeting – May 17, 2010 – Final Results
The Fund’s Annual Meeting of Shareholders was held on May 17, 2010 at the Greenwich Library in
Greenwich, Connecticut. At that meeting, common and preferred shareholders, voting together as a
single class, elected Mario d’Urso, Vincent D. Enright, and Michael J. Melarkey as Trustees of the
Fund. A total of 34,274,464 votes, 34,348,875 votes, and 34,388,613 votes were cast in favor of
each Trustee and a total of 457,335 votes, 383,924 votes, and 344,186 votes were withheld for each
Trustee, respectively.
Anthony J. Colavita, James P. Conn, Frank J. Fahrenkopf, Jr., Salvatore M. Salibello, Anthonie C.
van Ekris, and Salvatore J. Zizza continue to serve in their capacities as Trustees of the Fund.
We thank you for your participation and appreciate your continued support.
2
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS — 82.7% |
||||||||||||
Energy and Energy Services — 28.4% |
||||||||||||
| 72,000 | Apache Corp. |
$ | 7,227,143 | $ | 6,061,680 | |||||||
| 206,325 | Baker Hughes Inc. (a) |
11,202,086 | 8,576,930 | |||||||||
| 402,000 | BG Group plc |
6,654,629 | 6,042,312 | |||||||||
| 165,900 | BP plc, ADR (a) |
10,175,855 | 4,791,192 | |||||||||
| 130,500 | Chesapeake Energy Corp. (a) |
4,845,233 | 2,733,975 | |||||||||
| 115,000 | Chevron Corp. (a) |
8,550,250 | 7,803,900 | |||||||||
| 307,692 | Comanche
Energy Inc.† (b)(c)(d) |
1,849,998 | 0 | |||||||||
| 128,000 | ConocoPhillips (a) |
6,458,502 | 6,283,520 | |||||||||
| 188,000 | Devon Energy Corp. (a) |
11,582,362 | 11,452,960 | |||||||||
| 69,000 | Diamond Offshore
Drilling Inc. (a) |
6,721,594 | 4,291,110 | |||||||||
| 450,000 | El Paso Corp. |
4,097,901 | 4,999,500 | |||||||||
| 161,980 | Exxon Mobil Corp. (a) |
10,211,471 | 9,244,199 | |||||||||
| 65,000 | Galp Energia SGPS SA, Cl. B |
1,545,027 | 977,671 | |||||||||
| 419,000 | Halliburton Co. (a) |
11,541,661 | 10,286,450 | |||||||||
| 500,000 | Heritage Oil plc† |
3,345,465 | 2,944,867 | |||||||||
| 50,000 | Hess Corp. |
2,641,006 | 2,517,000 | |||||||||
| 235,000 | Imperial Oil Ltd. |
9,571,948 | 8,560,706 | |||||||||
| 180,000 | Marathon Oil Corp. (a) |
5,825,638 | 5,596,200 | |||||||||
| 255,000 | Murphy Oil Corp. (a) |
14,074,766 | 12,635,250 | |||||||||
| 320,000 | Nabors Industries Ltd.† (a) |
7,491,816 | 5,638,400 | |||||||||
| 110,000 | Nexen Inc. |
2,457,682 | 2,163,700 | |||||||||
| 442,100 | Noble Corp. (a) |
15,889,181 | 13,665,311 | |||||||||
| 391,500 | Petroleo Brasileiro SA,
ADR (a) |
17,570,412 | 13,436,280 | |||||||||
| 200,000 | Rowan Companies Inc.† (a) |
6,110,968 | 4,388,000 | |||||||||
| 184,000 | Royal Dutch Shell plc,
Cl. A |
6,096,083 | 4,676,288 | |||||||||
| 151,200 | Sasol Ltd., ADR (a) |
6,582,624 | 5,332,824 | |||||||||
| 138,400 | Statoil ASA, ADR (a) |
3,798,461 | 2,650,360 | |||||||||
| 541,500 | Suncor Energy Inc. (a) |
19,244,298 | 15,941,760 | |||||||||
| 100,000 | Technip SA |
6,998,364 | 5,820,779 | |||||||||
| 409,000 | Tesoro Corp. (a) |
6,572,561 | 4,773,030 | |||||||||
| 260,800 | The Williams
Companies Inc. (a) |
5,684,675 | 4,767,424 | |||||||||
| 75,000 | Total SA, ADR |
3,956,930 | 3,348,000 | |||||||||
| 93,200 | Transocean Ltd.† (a) |
7,879,738 | 4,317,956 | |||||||||
| 390,000 | Tullow Oil plc |
7,452,153 | 5,844,463 | |||||||||
| 301,100 | Valero Energy Corp. (a) |
6,794,884 | 5,413,778 | |||||||||
| 552,000 | Weatherford International
Ltd.† (a) |
11,525,981 | 7,253,280 | |||||||||
| 280,229,346 | 225,231,055 | |||||||||||
Exchange Traded Funds — 1.1% |
||||||||||||
| 63,500 | Oil Service HOLDRS (SM)
Trust |
7,799,861 | 6,009,640 | |||||||||
| 73,000 | United States Oil Fund LP† |
3,017,601 | 2,479,080 | |||||||||
| 10,817,462 | 8,488,720 | |||||||||||
Metals and Mining — 53.2% |
||||||||||||
| 210,000 | African Barrick Gold Ltd.† |
1,813,110 | 1,990,811 | |||||||||
| 448,500 | Agnico-Eagle Mines Ltd. (a) |
26,246,586 | 27,259,830 | |||||||||
| 580,000 | Andean Resources Ltd.† |
1,332,492 | 1,678,080 | |||||||||
| 258,000 | Anglo American plc† |
12,428,240 | 9,060,643 | |||||||||
| 563,500 | AngloGold Ashanti Ltd.,
ADR (a) |
22,435,342 | 24,331,930 | |||||||||
| 505,000 | Antofagasta plc. |
6,862,006 | 5,934,296 | |||||||||
| 500,400 | Barrick Gold Corp. (a) |
18,836,748 | 22,723,164 | |||||||||
| 159,500 | BHP Billiton Ltd., ADR (a) |
10,934,687 | 9,887,405 | |||||||||
| 770,000 | Centamin Egypt Ltd.† |
1,332,962 | 1,873,374 | |||||||||
| 110,000 | Compania de Minas
Buenaventura SA, ADR |
3,130,575 | 4,228,400 | |||||||||
| 700,000 | Consolidated Thompson
Iron Mines Ltd.† |
3,608,248 | 4,773,848 | |||||||||
| 83,000 | Detour Gold Corp.† |
1,325,850 | 1,843,925 | |||||||||
| 450,000 | Eldorado
Gold Corp. |
5,787,232 | 8,065,380 | |||||||||
| 175,000 | Equinox Minerals Ltd.† |
903,610 | 613,170 | |||||||||
| 167,000 | Franco-Nevada Corp. |
4,548,406 | 5,082,711 | |||||||||
| 175,000 | Franco-Nevada Corp. (e) |
5,164,182 | 5,326,194 | |||||||||
| 228,731 | Freeport-McMoRan Copper
& Gold Inc. (a) |
16,592,002 | 13,524,864 | |||||||||
| 538,500 | Fresnillo plc |
5,832,997 | 7,880,780 | |||||||||
| 1,941,500 | Gold Fields Ltd., ADR (a) |
28,641,113 | 25,957,855 | |||||||||
| 390,000 | Goldcorp Inc. (a) |
13,311,023 | 17,101,500 | |||||||||
| 1,096,100 | Harmony Gold Mining
Co. Ltd., ADR (a) |
11,868,928 | 11,585,777 | |||||||||
| 1,779,700 | Hochschild Mining plc |
10,118,158 | 8,187,203 | |||||||||
| 155,000 | HudBay Minerals Inc.† |
1,601,184 | 1,626,368 | |||||||||
| 285,000 | IAMGOLD Corp. |
4,188,117 | 5,038,800 | |||||||||
| 412,000 | Impala Platinum
Holdings Ltd. |
9,868,055 | 9,662,541 | |||||||||
| 500,140 | Ivanhoe Mines Ltd.† (a) |
6,275,658 | 6,521,826 | |||||||||
| 88,000 | Kazakhmys plc |
2,728,178 | 1,306,917 | |||||||||
| 255,000 | Keegan Resources Inc.† |
1,405,590 | 1,355,784 | |||||||||
| 1,236,400 | Kinross Gold Corp. (a) |
21,204,695 | 21,130,076 | |||||||||
| 3,733,488 | Lihir Gold Ltd. |
9,426,817 | 13,544,896 | |||||||||
| 250,600 | Lundin Mining Corp.† (a) |
2,134,634 | 715,789 | |||||||||
| 221,000 | MAG Silver Corp.† |
1,434,528 | 1,363,928 | |||||||||
| 640,646 | Newcrest Mining Ltd. |
16,210,132 | 18,928,181 | |||||||||
| 285,000 | Newmont Mining Corp. (a) |
14,481,066 | 17,595,900 | |||||||||
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) |
||||||||||||
Metals and Mining (Continued) |
||||||||||||
| 150,000 | Northern Dynasty
Minerals Ltd.† |
$ | 1,372,940 | $ | 970,500 | |||||||
| 165,000 | Osisko Mining Corp.† |
1,343,879 | 1,779,343 | |||||||||
| 12,537,555 | PanAust Ltd.† |
4,275,272 | 5,223,982 | |||||||||
| 61,300 | Peabody Energy Corp. (a) |
3,058,958 | 2,398,669 | |||||||||
| 200,000 | Randgold Resources Ltd.,
ADR (a) |
13,759,144 | 18,950,000 | |||||||||
| 449,000 | Red Back Mining Inc.† |
6,441,854 | 11,349,951 | |||||||||
| 293,600 | Rio Tinto plc, ADR (a) |
19,945,648 | 12,800,960 | |||||||||
| 845,000 | Romarco Minerals Inc.† |
1,328,572 | 1,404,960 | |||||||||
| 211,700 | Royal Gold Inc. |
9,241,922 | 10,161,600 | |||||||||
| 300,000 | SEMAFO Inc.† |
1,348,214 | 2,268,564 | |||||||||
| 200,115 | Vale SA, ADR (a) |
5,188,755 | 4,872,800 | |||||||||
| 1,272,305 | Xstrata plc |
26,927,958 | 16,857,610 | |||||||||
| 1,372,300 | Yamana Gold Inc. (a) |
15,591,658 | 14,134,690 | |||||||||
| 413,837,925 | 420,875,775 | |||||||||||
TOTAL COMMON
STOCKS |
704,884,733 | 654,595,550 | ||||||||||
CONVERTIBLE PREFERRED STOCKS — 0.4% |
||||||||||||
Metals and Mining — 0.4% |
||||||||||||
| 10,000 | Vale Capital II, 6.750%,
Cv. Pfd., Ser. VALe |
500,000 | 702,500 | |||||||||
| 35,000 | Vale Capital II, 6.750%,
Cv. Pfd., Ser. VALE |
1,750,000 | 2,461,550 | |||||||||
TOTAL CONVERTIBLE
PREFERRED STOCKS |
2,250,000 | 3,164,050 | ||||||||||
WARRANTS — 0.1% |
||||||||||||
Energy and Energy Services — 0.0% |
||||||||||||
| 34,091 | Comanche Energy Inc., Cl. A,
expire 06/18/13† (b)(c)(d) |
93,750 | 0 | |||||||||
| 36,197 | Comanche Energy Inc., Cl. B,
expire 06/18/13† (b)(c)(d) |
93,750 | 0 | |||||||||
| 82,965 | Comanche Energy Inc., Cl. C,
expire 06/18/13† (b)(c)(d) |
187,501 | 0 | |||||||||
| 375,001 | 0 | |||||||||||
Metals and Mining — 0.1% |
||||||||||||
| 62,500 | Franco-Nevada Corp.,
expire 03/13/12† (c) |
400,744 | 328,777 | |||||||||
| 87,500 | Franco-Nevada Corp.,
expire 06/16/17† (e) |
0 | 665,774 | |||||||||
| 400,744 | 994,551 | |||||||||||
TOTAL WARRANTS |
775,745 | 994,551 | ||||||||||
| Principal | Market | |||||||||||
| Amount | Cost | Value | ||||||||||
CONVERTIBLE CORPORATE BONDS — 1.6% |
||||||||||||
Energy and Energy Services — 0.6% |
||||||||||||
| $ | 1,500,000 | Chesapeake Energy Corp., Cv.,
2.250%, 12/15/38 |
$ | 676,101 | $ | 1,089,375 | ||||||
| 2,000,000 | Nabors Industries Inc., Cv.,
0.940%, 05/15/11 |
1,830,960 | 1,970,000 | |||||||||
| 2,000,000 | Transocean Ltd., Ser. A, Cv.,
1.625%, 12/15/37 |
1,915,105 | 1,947,500 | |||||||||
| 4,422,166 | 5,006,875 | |||||||||||
Metals and Mining — 1.0% |
||||||||||||
| 5,000,000 | Newmont Mining Corp., Cv.,
1.625%, 07/15/17 |
3,700,177 | 7,231,250 | |||||||||
| 725,000 | Wesdome Gold Mines Ltd.,
Deb. Cv.,
7.000%, 05/31/12 (c)(d)(e) |
687,740 | 741,992 | |||||||||
| 4,387,917 | 7,973,242 | |||||||||||
TOTAL CONVERTIBLE
CORPORATE BONDS |
8,810,083 | 12,980,117 | ||||||||||
CORPORATE BONDS — 2.8% |
||||||||||||
Energy and Energy Services — 1.1% |
||||||||||||
| 4,144,074 | Comanche Energy Inc., PIK,
15.500%,
06/13/13 (b)(c)(d) |
4,010,878 | 828,815 | |||||||||
| 2,500,000 | Compagnie Generale de
Geophysique-Veritas,
7.500%, 05/15/15 |
2,339,413 | 2,393,750 | |||||||||
| 2,000,000 | PetroHawk Energy Corp.,
9.125%, 07/15/13 |
2,000,000 | 2,095,000 | |||||||||
| 500,000 | Tesoro Corp.,
9.750%, 06/01/19 |
482,128 | 521,250 | |||||||||
| 2,500,000 | Weatherford International Ltd.,
9.625%, 03/01/19 |
2,879,431 | 3,015,088 | |||||||||
| 11,711,850 | 8,853,903 | |||||||||||
Metals and Mining — 1.7% |
||||||||||||
| 2,000,000 | Freeport-McMoRan Copper
& Gold Inc.,
8.250%, 04/01/15 |
1,675,935 | 2,172,134 | |||||||||
| 2,000,000 | Peabody Energy Corp., Ser. B,
6.875%, 03/15/13 |
1,839,428 | 2,025,000 | |||||||||
| 4,000,000 | United States Steel Corp.,
6.050%, 06/01/17 |
2,927,117 | 3,820,000 | |||||||||
| 5,000,000 | Xstrata Canada Corp.,
7.250%, 07/15/12 |
4,892,672 | 5,417,925 | |||||||||
| 11,335,152 | 13,435,059 | |||||||||||
TOTAL CORPORATE
BONDS |
23,047,002 | 22,288,962 | ||||||||||
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Principal | Market | |||||||||||
| Amount | Cost | Value | ||||||||||
U.S. GOVERNMENT OBLIGATIONS — 12.4% |
||||||||||||
U.S. Treasury Bills — 11.6% |
||||||||||||
| $ | 91,998,000 | U.S. Treasury Bills,
0.066% to 0.223%††,
07/22/10 to 12/16/10 (a) |
$ | 91,969,580 | $ | 91,967,122 | ||||||
U.S. Treasury Cash Management
Bills — 0.8% |
||||||||||||
| 6,000,000 | U.S. Treasury Cash Management Bill,
0.152%††, 07/15/10 (a) |
5,999,650 | 5,999,650 | |||||||||
TOTAL U.S. GOVERNMENT
OBLIGATIONS |
97,969,230 | 97,966,772 | ||||||||||
| TOTAL INVESTMENTS — 100.0% | $ | 837,736,793 | 791,990,002 | |||||||||
| CALL OPTIONS WRITTEN (Premiums received $27,203,811) |
(21,177,453 | ) | ||||||||||
| PUT OPTIONS WRITTEN (Premiums received $7,856,564) |
(10,493,460 | ) | ||||||||||
| Other Assets and Liabilities (Net) | 2,890,117 | |||||||||||
| PREFERRED STOCK (3,955,687 preferred shares outstanding) |
(98,892,175 | ) | ||||||||||
| NET ASSETS — COMMON STOCK (45,016,217 common shares outstanding) |
$ | 664,317,031 | ||||||||||
| NET ASSET VALUE PER COMMON SHARE ($664,317,031 ÷ 45,016,217 shares outstanding) |
$ | 14.76 | ||||||||||
| Number of | Expiration Date/ | Market | ||||||||
| Contracts | Exercise Price | Value | ||||||||
OPTION CONTRACTS WRITTEN — (4.0)% |
||||||||||
Call Options Written — (2.7)% |
||||||||||
| 1,435 | Agnico-Eagle Mines Ltd. |
Aug. 10/65 | $ | 287,000 | ||||||
| 1,000 | Agnico-Eagle Mines Ltd. |
Nov. 10/65 | 437,500 | |||||||
| 1,500 | Agnico-Eagle Mines Ltd. |
Nov. 10/70 | 435,000 | |||||||
| 550 | Agnico-Eagle Mines Ltd. |
Jan. 11/65 | 314,875 | |||||||
| 135 | Anglo American plc(f) |
Jul. 10/30 | 14,119 | |||||||
| 135 | Anglo American plc(f) |
Sep. 10/26 | 172,960 | |||||||
| 123 | Anglo American plc(f) |
Sep. 10/28 | 74,888 | |||||||
| 5,635 | AngloGold Ashanti Ltd.,
ADR |
Oct. 10/45 | 1,493,275 | |||||||
| 200 | Antofagasta plc(f) |
Sep. 10/9.11 | 64,889 | |||||||
| 145 | Antofagasta plc(f) |
Sep. 10/9.50 | 22,702 | |||||||
| 160 | Antofagasta plc(f) |
Dec. 10/9.50 | 78,470 | |||||||
| 500 | Apache Corp. |
Oct. 10/105 | 62,500 | |||||||
| 220 | Apache Corp. |
Jan. 11/100 | 99,000 | |||||||
| 630 | Baker Hughes Inc. |
Jul. 10/50 | 3,150 | |||||||
| 1,430 | Baker Hughes Inc. |
Oct. 10/50 | $ | 185,900 | ||||||
| 2,879 | Barrick Gold Corp. |
Jul. 10/44 | 719,750 | |||||||
| 1,275 | Barrick Gold Corp. |
Jul. 10/48 | 58,650 | |||||||
| 750 | Barrick Gold Corp. |
Jan. 11/49 | 270,000 | |||||||
| 402 | BG Group plc(f) |
Jul. 10/11.50 | 10,511 | |||||||
| 1,070 | BHP Billiton Ltd., ADR |
Aug. 10/67.50 | 201,160 | |||||||
| 520 | BHP Billiton Ltd., ADR |
Nov. 10/70 | 185,120 | |||||||
| 1,659 | BP plc, ADR |
Jul. 10/50 | 3,318 | |||||||
| 1,000 | Chesapeake Energy Corp. |
Jul. 10/27 | 1,000 | |||||||
| 650 | Chevron Corp. |
Sep. 10/85 | 7,150 | |||||||
| 500 | Chevron Corp. |
Jan. 11/70 | 252,500 | |||||||
| 1,100 | Compania de Minas
Buenaventura SA, ADR |
Dec. 10/40 | 401,500 | |||||||
| 980 | ConocoPhillips |
Aug. 10/55 | 49,000 | |||||||
| 300 | ConocoPhillips |
Jan. 11/60 | 33,000 | |||||||
| 6,900 | Consolidated Thompson
Iron Mines Ltd.(g) |
Oct. 10/11 | 81,020 | |||||||
| 1,688 | Devon Energy Corp. |
Oct. 10/70 | 305,528 | |||||||
| 200 | Devon Energy Corp. |
Oct. 10/75 | 20,800 | |||||||
| 690 | Diamond Offshore
Drilling Inc. |
Sep. 10/76.75 | 72,450 | |||||||
| 4,000 | El Paso Corp. |
Jul. 10/12 | 40,000 | |||||||
| 500 | El Paso Corp. |
Oct. 10/12 | 35,500 | |||||||
| 3,500 | Eldorado Gold Corp.(g) |
Nov. 10/16 | 1,315,110 | |||||||
| 1,750 | Equinox Minerals Ltd.(g) |
Jul. 10/4 | 14,795 | |||||||
| 910 | Exxon Mobil Corp. |
Oct. 10/70 | 22,750 | |||||||
| 1,670 | Franco-Nevada Corp.(g). |
Jul. 10/30 | 400,028 | |||||||
| 2,287 | Freeport-McMoRan Copper
& Gold Inc. |
Aug. 10/85 | 34,305 | |||||||
| 435 | Gold Fields Ltd., ADR |
Jul. 10/13 | 31,755 | |||||||
| 4,500 | Gold Fields Ltd., ADR |
Jul. 10/14 | 94,500 | |||||||
| 6,980 | Gold Fields Ltd., ADR |
Jul. 10/15 | 34,900 | |||||||
| 7,500 | Gold Fields Ltd., ADR |
Oct. 10/14 | 592,500 | |||||||
| 2,900 | Goldcorp Inc. |
Jul. 10/48 | 72,500 | |||||||
| 1,000 | Goldcorp Inc. |
Oct. 10/46 | 292,000 | |||||||
| 700 | Halliburton Co. |
Jul. 10/36 | 1,400 | |||||||
| 1,800 | Halliburton Co. |
Jul. 10/37 | 5,400 | |||||||
| 1,300 | Halliburton Co. |
Oct. 10/30 | 137,800 | |||||||
| 3,461 | Harmony Gold Mining
Co. Ltd., ADR |
Oct. 10/10.50 | 298,927 | |||||||
| 1,500 | Harmony Gold Mining
Co. Ltd., ADR |
Nov. 10/11 | 127,500 | |||||||
| 1,000 | Harmony Gold Mining
Co. Ltd., ADR |
Jan. 11/10 | 152,500 | |||||||
| 5,000 | Harmony Gold Mining
Co. Ltd., ADR |
Jan. 11/11 | 525,000 | |||||||
| 500 | Hess Corp. |
Nov. 10/55 | 161,250 | |||||||
| 2,850 | IAMGOLD Corp. |
Sep. 10/17.50 | 498,750 | |||||||
| 850 | Imperial Oil Ltd. |
Aug. 10/40 | 77,051 | |||||||
| 1,500 | Imperial Oil Ltd.(g) |
Aug. 10/42 | 50,021 | |||||||
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Number of | Expiration Date/ | Market | ||||||||
| Contracts | Exercise Price | Value | ||||||||
OPTION CONTRACTS WRITTEN (Continued) |
||||||||||
Call Options Written (Continued) |
||||||||||
| 2,000 | Ivanhoe Mines Ltd. |
Dec. 10/12 | $ | 510,000 | ||||||
| 3,000 | Ivanhoe Mines Ltd. |
Jan. 11/15 | 420,000 | |||||||
| 7,675 | Kinross Gold Corp. |
Aug. 10/20 | 199,550 | |||||||
| 3,300 | Kinross Gold Corp. |
Nov. 10/21 | 178,200 | |||||||
| 1,800 | Marathon Oil Corp. |
Jul. 10/35 | 9,000 | |||||||
| 300 | Murphy Oil Corp. |
Jul. 10/60 | 3,000 | |||||||
| 2,250 | Murphy Oil Corp. |
Oct. 10/60 | 180,000 | |||||||
| 2,000 | Nabors Industries Ltd. |
Sep. 10/22 | 70,000 | |||||||
| 1,200 | Nabors Industries Ltd. |
Sep. 10/23 | 32,400 | |||||||
| 410 | Newcrest Mining Ltd.(h) |
Aug. 10/39.64 | 114,303 | |||||||
| 670 | Newcrest Mining Ltd.(h) |
Sep. 10/37 | 507,576 | |||||||
| 500 | Newmont Mining Corp. |
Sep. 10/50 | 650,000 | |||||||
| 200 | Newmont Mining Corp. |
Sep. 10/57.50 | 135,000 | |||||||
| 900 | Newmont Mining Corp. |
Sep. 10/60 | 472,500 | |||||||
| 1,300 | Newmont Mining Corp. |
Jan. 11/62.50 | 850,200 | |||||||
| 500 | Nexen Inc. |
Sep. 10/22.50 | 23,750 | |||||||
| 600 | Nexen Inc. |
Sep. 10/25 | 7,500 | |||||||
| 600 | Noble Corp. |
Sep. 10/44 | 6,000 | |||||||
| 1,350 | Noble Corp. |
Dec. 10/35 | 297,000 | |||||||
| 2,430 | Noble Corp. |
Dec. 10/43 | 121,500 | |||||||
| 613 | Peabody Energy Corp. |
Dec. 10/46 | 165,510 | |||||||
| 2,000 | Randgold Resources Ltd.,
ADR |
Dec. 10/105 | 1,280,000 | |||||||
| 1,000 | Red Back Mining Inc.(g) |
Jul. 10/26 | 140,905 | |||||||
| 3,490 | Red Back Mining Inc.(g) |
Jul. 10/27 | 311,446 | |||||||
| 2,000 | Rio Tinto plc, ADR |
Jul. 10/60 | 6,000 | |||||||
| 336 | Rio Tinto plc, ADR |
Oct. 10/57.50 | 22,680 | |||||||
| 336 | Rio Tinto plc, ADR |
Oct. 10/60 | 17,640 | |||||||
| 600 | Rio Tinto plc, ADR |
Dec. 10/57.50 | 114,726 | |||||||
| 2,000 | Rowan Companies Inc. |
Oct. 10/25 | 230,000 | |||||||
| 92 | Royal Dutch Shell plc,
Cl. A(f) |
Dec. 10/19 | 41,924 | |||||||
| 92 | Royal Dutch Shell plc,
Cl. A(f) |
Dec. 10/20 | 20,962 | |||||||
| 275 | Royal Gold Inc. |
Jul. 10/45 | 94,875 | |||||||
| 200 | Royal Gold Inc. |
Jul. 10/50 | 14,000 | |||||||
| 1,642 | Royal Gold Inc. |
Jul. 10/55 | 16,420 | |||||||
| 712 | Sasol Ltd., ADR |
Sep. 10/40 | 92,560 | |||||||
| 800 | Sasol Ltd., ADR |
Dec. 10/40 | 168,000 | |||||||
| 6,145 | Suncor
Energy Inc. |
Sep. 10/36 | 319,540 | |||||||
| 650 | Suncor
Energy Inc. |
Dec. 10/36 | 72,800 | |||||||
| 400 | Technip SA(i) |
Sep. 10/60 | 12,718 | |||||||
| 600 | Technip SA(i) |
Dec. 10/59 | 157,748 | |||||||
| 1,290 | Tesoro Corp. |
Aug. 10/17 | 12,900 | |||||||
| 1,429 | Tesoro Corp. |
Nov. 10/18 | 14,290 | |||||||
| 1,290 | Tesoro Corp. |
Jan. 11/17.50 | 32,250 | |||||||
| 2,600 | The Williams
Companies Inc. |
Aug. 10/22.50 | 28,600 | |||||||
| 150 | Total SA, ADR |
Aug. 10/65 | 1,200 | |||||||
| 1,355 | Transocean Ltd. |
Nov. 10/80 | 55,555 | |||||||
| 250 | Tullow Oil plc(f) |
Sep. 10/13 | 22,411 | |||||||
| 10 | Tullow Oil plc(f) |
Dec. 10/12 | 5,715 | |||||||
| 130 | Tullow Oil plc(f) |
Dec. 10/13 | 42,246 | |||||||
| 500 | Vale SA, ADR |
Sep. 10/34 | 4,250 | |||||||
| 1,387 | Vale SA, ADR |
Dec. 10/32 | 88,768 | |||||||
| 3,361 | Valero Energy Corp. |
Sep. 10/19 | 322,656 | |||||||
| 3,210 | Weatherford
International Ltd. |
Aug. 10/18 | 19,260 | |||||||
| 2,310 | Weatherford
International Ltd. |
Nov. 10/18 | 78,540 | |||||||
| 972 | Xstrata plc(f) |
Jul. 10/11 | 39,937 | |||||||
| 150 | Xstrata plc(f) |
Dec. 10/11 | 99,731 | |||||||
| 150 | Xstrata plc(f) |
Dec. 10/12 | 59,951 | |||||||
| 5,723 | Yamana Gold Inc. |
Oct. 10/11 | 406,333 | |||||||
| 8,000 | Yamana Gold Inc. |
Oct. 10/12 | 320,000 | |||||||
TOTAL CALL OPTIONS WRITTEN (Premiums received $27,203,811) |
$ | 21,177,453 | ||||||||
Put Options Written — (1.3)% |
||||||||||
| 1,000 | Agnico-Eagle Mines Ltd. |
Nov. 10/50 | $ | 210,000 | ||||||
| 100 | AngloGold Ashanti Ltd.,
ADR |
Oct. 10/35 | 8,500 | |||||||
| 500 | AngloGold Ashanti Ltd.,
ADR |
Oct. 10/36 | 46,435 | |||||||
| 350 | Baker Hughes Inc. |
Oct. 10/36 | 80,500 | |||||||
| 475 | Barrick Gold Corp. |
Oct. 10/36 | 38,000 | |||||||
| 250 | BP plc, ADR |
Jan. 11/35 | 235,000 | |||||||
| 420 | Cameron International Corp. |
Nov. 10/35 | 241,500 | |||||||
| 400 | Chevron Corp. |
Jan. 11/65 | 214,000 | |||||||
| 300 | Compania de Minas
Buenaventura SA, ADR |
Dec. 10/30 | 33,750 | |||||||
| 300 | Devon Energy Corp. |
Oct. 10/65 | 228,750 | |||||||
| 150 | Diamond Offshore
Drilling Inc. |
Dec. 10/55 | 74,250 | |||||||
| 220 | Diamond Offshore
Drilling Inc. |
Jan. 11/68 | 261,800 | |||||||
| 500 | Eldorado Gold Corp.(g) |
Nov. 10/15 | 26,537 | |||||||
| 230 | Exxon Mobil Corp. |
Jan. 11/65 | 231,150 | |||||||
| 850 | Franco-Nevada Corp.(g) |
Oct. 10/25 | 11,577 | |||||||
| 500 | Freeport-McMoRan Copper
& Gold Inc. |
Jan. 11/60 | 447,000 | |||||||
| 500 | Freeport-McMoRan Copper
& Gold Inc. |
Jan. 11/65 | 632,000 | |||||||
| 4,500 | Gold Fields Ltd., ADR |
Oct. 10/11 | 141,750 | |||||||
| 1,200 | Goldcorp Inc. |
Oct. 10/34 | 87,600 | |||||||
| 700 | Halliburton Co. |
Oct. 10/29 | 388,500 | |||||||
| 1,000 | Halliburton Co. |
Jan. 11/25 | 400,000 | |||||||
| 1,750 | Harmony Gold Mining Co.
Ltd., ADR |
Jan. 11/9 | 105,000 | |||||||
| 250 | Hess Corp. |
Aug. 10/45 | 31,250 | |||||||
| 400 | IAMGOLD Corp.(g) |
Nov. 10/15 | 25,175 | |||||||
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Number of | Expiration Date/ | Market | ||||||||
| Contracts | Exercise Price | Value | ||||||||
OPTION CONTRACTS
WRITTEN (Continued) |
||||||||||
Put Options
Written (Continued) |
||||||||||
| 2,750 | Ivanhoe Mines Ltd. |
Sep. 10/15 | $ | 728,750 | ||||||
| 1,600 | Kinross Gold Corp. |
Nov. 10/15 | 148,800 | |||||||
| 665 | Kinross Gold Corp. |
Jan. 11/15 | 82,128 | |||||||
| 500 | Murphy Oil Corp. |
Oct. 10/55 | 375,000 | |||||||
| 700 | Nabors Industries Ltd. |
Dec. 10/19 | 224,000 | |||||||
| 225 | Nexen Inc. |
Dec. 10/20 | 52,312 | |||||||
| 225 | Noble Corp. |
Dec. 10/28 | 57,375 | |||||||
| 420 | Noble Corp. |
Dec. 10/36 | 291,900 | |||||||
| 350 | Oil Service HOLDRS (SM)
Trust |
Jan. 11/99.10 | 514,500 | |||||||
| 330 | Oil Service HOLDRS (SM)
Trust |
Jan. 12/104.10 | 839,025 | |||||||
| 500 | PetroHawk Energy Corp. |
Jan. 11/16 | 108,500 | |||||||
| 1,000 | Petroleo Brasileiro SA,
ADR |
Oct. 10/40 | 635,000 | |||||||
| 300 | Petroleo Brasileiro SA,
ADR |
Jan. 11/33 | 117,000 | |||||||
| 100 | Randgold Resources Ltd.,
ADR |
Dec. 10/75 | 31,500 | |||||||
| 400 | Red Back Mining Inc.(g) |
Jan. 11/21 | 35,696 | |||||||
| 500 | Rio Tinto plc, ADR |
Jan. 11/40 | 235,000 | |||||||
| 1,200 | Rowan Companies Inc. |
Oct. 10/27.50 | 732,000 | |||||||
| 500 | Royal Gold Inc. |
Oct. 10/45 | 122,500 | |||||||
| 500 | Transocean Ltd. |
Jan. 11/50 | 562,500 | |||||||
| 200 | Ultra Petroleum Corp. |
Sep. 10/45 | 82,000 | |||||||
| 400 | Vale SA, ADR |
Jan. 11/22.50 | 102,400 | |||||||
| 600 | Weatherford
International Ltd. |
Jan. 11/12.50 | 103,500 | |||||||
| 1,350 | Yamana Gold Inc. |
Jan. 11/9 | 112,050 | |||||||
TOTAL PUT
OPTIONS WRITTEN (Premiums received $7,856,564) |
$ | 10,493,460 | ||||||||
| (a) | Securities, or a portion thereof, with a value of $232,353,071 were pledged as collateral for options written. | |
| (b) | At June 30, 2010, the Fund held investments in restricted securities amounting to $828,815 or 0.10% of total investments, which were valued under methods approved by the Board of Trustees as follows: |
| Acquisition | ||||||||||||||||
| Shares/ | 06/30/10 | |||||||||||||||
| Principal | Acquisition | Acquisition | Carrying Value | |||||||||||||
| Amount | Issuer | Date | Cost | Per Unit | ||||||||||||
| 307,692 | Comanche Energy Inc. |
06/17/08 | $ | 1,849,998 | — | |||||||||||
| 34,091 | Comanche Energy Inc., Cl. A,
Warrants expire 06/18/13 |
06/17/08 | 93,750 | — | ||||||||||||
| 36,197 | Comanche Energy Inc., Cl. B,
Warrants expire 06/18/13 |
06/17/08 | 93,750 | — | ||||||||||||
| 82,965 | Comanche Energy Inc., Cl. C,
Warrants expire 06/18/13 |
06/17/08 | 187,501 | — | ||||||||||||
| $ | 4,144,074 | Comanche Energy Inc.,
PIK, 15.500%, 06/13/13 |
06/17/08 | 3,919,074 | $ | 20.0000 | ||||||||||
| (c) | Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about the company and reviewing the valuation of comparable securities and other factors on a regular basis. At June 30, 2010, the market value of fair valued securities amounted to $1,899,584 or 0.24% of total investments. | |
| (d) | Illiquid security. | |
| (e) | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2010, the market value of Rule 144A securities amounted to $6,733,960 or 0.85% of total investments. | |
| (f) | Exercise price denoted in British Pounds. | |
| (g) | Exercise price denoted in Canadian dollars. | |
| (h) | Exercise price denoted in Australian dollars. | |
| (i) | Exercise price denoted in Euros. | |
| † | Non-income producing security. | |
| †† | Represents annualized yield at date of purchase. | |
| ADR | American Depositary Receipt | |
| PIK | Payment-in-kind |
| % of | ||||||||
| Market | Market | |||||||
| Geographic Diversification | Value | Value | ||||||
Long Positions |
||||||||
North America |
60.6 | % | $ | 479,985,191 | ||||
Europe |
19.0 | 150,710,537 | ||||||
South Africa |
9.7 | 76,870,927 | ||||||
Asia/Pacific |
6.5 | 51,135,917 | ||||||
Latin America |
4.2 | 33,287,430 | ||||||
Total Investments |
100.0 | % | $ | 791,990,002 | ||||
Short Positions |
||||||||
North America |
(2.6 | )% | $ | (21,014,944 | ) | |||
Europe |
(0.6 | ) | (4,482,076 | ) | ||||
South Africa |
(0.5 | ) | (3,858,166 | ) | ||||
Latin America |
(0.2 | ) | (1,307,568 | ) | ||||
Asia/Pacific |
(0.1 | ) | (1,008,159 | ) | ||||
Total Investments |
(4.0 | )% | $ | (31,670,913 | ) | |||
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2010 (Unaudited)
June 30, 2010 (Unaudited)
Assets: |
||||
Investments, at value (cost $837,736,793) |
$ | 791,990,002 | ||
Foreign currency, at value (cost $488,499) |
476,880 | |||
Deposit at brokers |
2,716,911 | |||
Receivable for Fund shares issued |
4,625,939 | |||
Dividends and interest receivable |
822,685 | |||
Deferred offering expense |
285,833 | |||
Prepaid expense |
8,773 | |||
Total Assets |
800,927,023 | |||
Liabilities: |
||||
Call options written (premiums received $27,203,811) |
21,177,453 | |||
Put options written (premiums received $7,856,564) |
10,493,460 | |||
Payable to custodian |
77,449 | |||
Payable for investments purchased |
4,424,805 | |||
Distributions payable |
54,597 | |||
Payable for investment advisory fees |
626,549 | |||
Payable for payroll expenses |
30,049 | |||
Payable for accounting fees |
7,500 | |||
Payable for offering costs for issuance of
common shares |
552,088 | |||
Other accrued expenses |
273,867 | |||
Total Liabilities |
37,717,817 | |||
Preferred Shares: |
||||
Series A Cumulative Preferred Shares (6.625%, $25
liquidation value, $0.001 par value, 4,000,000 shares
authorized with 3,955,687 shares issued
and outstanding) |
98,892,175 | |||
Net Assets Attributable to Common Shareholders |
$ | 664,317,031 | ||
Net Assets Attributable to Common Shareholders
Consist of: |
||||
Paid-in capital |
$ | 712,272,461 | ||
Accumulated distributions in excess of
net investment income |
(3,329,526 | ) | ||
Accumulated net realized loss on investments,
written options, and foreign currency transactions |
(2,297,929 | ) | ||
Net unrealized depreciation on investments |
(45,746,791 | ) | ||
Net unrealized appreciation on written options |
3,389,462 | |||
Net unrealized appreciation on foreign currency
translations |
29,354 | |||
Net Assets |
$ | 664,317,031 | ||
Net Asset Value per Common Share: |
||||
($664,317,031 ÷ 45,016,217 shares outstanding, at $0.001
par value; unlimited number of shares authorized) |
$ | 14.76 | ||
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2010 (Unaudited)
For the Six Months Ended June 30, 2010 (Unaudited)
Investment Income: |
||||
Dividends (net of foreign taxes of $178,635) |
$ | 3,619,236 | ||
Interest |
1,865,655 | |||
Total Investment Income |
5,484,891 | |||
Expenses: |
||||
Investment advisory fees |
3,385,553 | |||
Offering expense for issuance of common shares |
256,416 | |||
Shareholder communications expenses |
130,506 | |||
Legal and audit fees |
90,776 | |||
Payroll expenses |
72,730 | |||
Trustees’ fees |
51,190 | |||
Custodian fees |
28,897 | |||
Accounting fees |
22,500 | |||
Shareholder services fees |
11,255 | |||
Interest expense |
1,248 | |||
Miscellaneous expenses |
55,013 | |||
Total Expenses |
4,106,084 | |||
Net Investment Income |
1,378,807 | |||
Net Realized and Unrealized Gain/(Loss) on Investments,
Written Options, and Foreign Currency: |
||||
Net realized gain on investments |
8,585,475 | |||
Net realized gain on written options |
21,690,591 | |||
Net realized loss on foreign currency transactions |
(147,850 | ) | ||
Net realized gain on investments, written options,
and foreign currency transactions |
30,128,216 | |||
Net change in unrealized appreciation/depreciation: |
||||
on investments |
(52,942,093 | ) | ||
on written options |
(1,792,870 | ) | ||
on foreign currency translations |
31,812 | |||
Net change in unrealized appreciation/depreciation on
investments, written options, and foreign
currency translations |
(54,703,151 | ) | ||
Net Realized and Unrealized Gain/(Loss) on Investments,
Written Options, and Foreign Currency |
(24,574,935 | ) | ||
Net Decrease in Net Assets Resulting
from Operations |
(23,196,128 | ) | ||
Total Distributions to Preferred Shareholders |
(3,257,604 | ) | ||
Net Decrease in Net Assets Attributable to Common
Shareholders Resulting from Operations |
$ | (26,453,732 | ) | |
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
| Six Months Ended | ||||||||
| June 30, 2010 | Year Ended | |||||||
| (Unaudited) | December 31, 2009 | |||||||
Operations: |
||||||||
Net investment income |
$ | 1,378,807 | $ | 4,477,578 | ||||
Net realized gain on investments, swap contracts, securities sold short,
written options,
and foreign currency transactions |
30,128,216 | 34,962,624 | ||||||
Net change in unrealized appreciation/depreciation on investments, swap
contracts,
and foreign currency translations |
(54,703,151 | ) | 121,828,743 | |||||
Net
Increase/(Decrease) in Net Assets Resulting from Operations |
(23,196,128 | ) | 161,268,945 | |||||
Distributions to Preferred Shareholders: |
||||||||
Net investment income |
(162,880) | * | (2,417,976 | ) | ||||
Net realized short-term gain |
(3,094,724) | * | (2,540,474 | ) | ||||
Net realized long-term gain |
— | (1,556,710 | ) | |||||
Total Distributions to Preferred Shareholders |
(3,257,604 | ) | (6,515,160 | ) | ||||
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders
Resulting from Operations |
(26,453,732 | ) | 154,753,785 | |||||
Distributions to Common Shareholders: |
||||||||
Net investment income |
(1,261,226) | * | (5,972,068 | ) | ||||
Net realized short-term gain |
(23,332,678) | * | (6,274,624 | ) | ||||
Net realized long-term gain |
— | (3,844,859 | ) | |||||
Return of capital |
(6,936,742) | * | (22,238,654 | ) | ||||
Total Distributions to Common Shareholders |
(31,530,646 | ) | (38,330,205 | ) | ||||
Fund Share Transactions: |
||||||||
Net increase
in net assets from common shares issued in offering |
196,760,006 | 207,850,594 | ||||||
Net increase
in net assets from common shares issued upon reinvestment of distributions |
4,386,941 | 6,768,233 | ||||||
Net increase in net assets attributable to
common shareholders from repurchase of preferred shares |
— | 2,734 | ||||||
Net
Increase in Net Assets from Fund Share Transactions |
201,146,947 | 214,621,561 | ||||||
Net
Increase in Net Assets Attributable to Common Shareholders |
143,162,569 | 331,045,141 | ||||||
Net Assets Attributable to Common Shareholders: |
||||||||
Beginning of period |
521,154,462 | 190,109,321 | ||||||
End of
period (including undistributed net investment income of $0 and $0, respectively) |
$ | 664,317,031 | $ | 521,154,462 | ||||
| * | Based on year to date book income. Amounts are subject to change and recharacterization at year end. |
See accompanying notes to financial statements.
9
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each period:
| Six Months Ended | ||||||||||||||||||||||||
| June 30, 2010 | Year Ended December 31, | Period Ended | ||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | December 31, 2005 (f) | |||||||||||||||||||
Operating Performance: |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 15.91 | $ | 10.39 | $ | 29.48 | $ | 24.10 | $ | 21.99 | $ | 19.06 | (g) | |||||||||||
Net investment income/(loss) |
0.06 | 0.12 | 0.10 | (0.02 | ) | 0.08 | 0.08 | |||||||||||||||||
Net realized and unrealized gain/(loss) on investments,
swap contracts, securities sold short, written options,
and foreign currency transactions |
(0.29 | ) | 7.06 | (17.18 | ) | 7.61 | 3.77 | 4.01 | ||||||||||||||||
Total from investment operations |
(0.23 | ) | 7.18 | (17.08 | ) | 7.59 | 3.85 | 4.09 | ||||||||||||||||
Distributions to Preferred Shareholders: (a) |
||||||||||||||||||||||||
Net investment income |
0.00(d) | * | (0.11 | ) | (0.08 | ) | (0.01 | ) | — | — | ||||||||||||||
Net realized gain |
(0.08) | * | (0.18 | ) | (0.28 | ) | (0.07 | ) | — | — | ||||||||||||||
Total distributions to preferred shareholders |
(0.08 | ) | (0.29 | ) | (0.36 | ) | (0.08 | ) | — | — | ||||||||||||||
Distributions to Common Shareholders: |
||||||||||||||||||||||||
Net investment income |
(0.03) | * | (0.26 | ) | (0.13 | ) | (0.15 | ) | — | (0.07 | ) | |||||||||||||
Net realized gain |
(0.62) | * | (0.45 | ) | (0.48 | ) | (1.78 | ) | (1.74 | ) | (1.09 | ) | ||||||||||||
Return of capital |
(0.19) | * | (0.97 | ) | (1.07 | ) | — | — | — | |||||||||||||||
Total distributions to common shareholders |
(0.84 | ) | (1.68 | ) | (1.68 | ) | (1.93 | ) | (1.74 | ) | (1.16 | ) | ||||||||||||
Fund Share Transactions: |
||||||||||||||||||||||||
Increase/(decrease) in net asset value from common
share transactions |
0.00 | (d) | 0.31 | 0.01 | 0.00 | (d) | — | (0.00 | )(d) | |||||||||||||||
Increase in net asset value from repurchases of
preferred shares |
— | 0.00 | (d) | 0.01 | — | — | — | |||||||||||||||||
Offering costs for preferred shares charged to
paid-in capital |
— | — | 0.01 | (0.20 | ) | — | — | |||||||||||||||||
Total fund share transactions |
0.00 | (d) | 0.31 | 0.03 | (0.20 | ) | — | (0.00 | )(d) | |||||||||||||||
Net Asset Value, End of Period |
$ | 14.76 | $ | 15.91 | $ | 10.39 | $ | 29.48 | $ | 24.10 | $ | 21.99 | ||||||||||||
NAV total return † |
(2.20 | )% | 74.36 | % | (61.59 | )% | 31.47 | % | 18.29 | % | 22.0 | %** | ||||||||||||
Market value, end of period |
$ | 15.67 | $ | 16.34 | $ | 13.10 | $ | 29.15 | $ | 24.60 | $ | 21.80 | ||||||||||||
Investment
total return †† |
1.12 | % | 40.14 | % | (50.94 | )% | 27.40 | % | 21.86 | % | 15.2 | %*** | ||||||||||||
See accompanying notes to financial statements.
10
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
Selected data for a share of beneficial interest outstanding throughout each period:
| Six Months Ended | ||||||||||||||||||||||||
| June 30, 2010 | Year Ended December 31, | Period Ended | ||||||||||||||||||||||
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | December 31, 2005 (f) | |||||||||||||||||||
Ratios to Average Net Assets and Supplemental Data: |
||||||||||||||||||||||||
Net assets including liquidation value of preferred shares,
end of period (in 000’s) |
$ | 763,209 | $ | 620,047 | $ | 289,046 | $ | 633,253 | — | — | ||||||||||||||
Net assets attributable to common shares,
end of period (in 000’s) |
$ | 664,317 | $ | 521,155 | $ | 190,109 | $ | 533,253 | $ | 432,741 | $ | 390,209 | ||||||||||||
Ratio of net investment income/(loss) to average
net assets attributable to common shares |
0.48 | %(e) | 1.44 | % | 0.39 | % | (0.09 | )% | 0.42 | % | 0.47 | %(e) | ||||||||||||
Ratio of operating expenses to average net assets
attributable to common shares (b) |
1.42 | %(e) | 1.78 | % | 1.69 | % | 1.45 | % | 1.17 | % | 1.15 | %(e) | ||||||||||||
Ratio of operating expenses to average net assets
including liquidation value of preferred shares (b) |
1.21 | %(e) | 1.35 | % | 1.37 | % | 1.39 | % | — | — | ||||||||||||||
Portfolio
turnover rate ††† |
17.0 | % | 61.0 | % | 41.5 | % | 71.3 | % | 114.8 | % | 142.5 | % | ||||||||||||
Preferred Shares: |
||||||||||||||||||||||||
6.625% Series A Cumulative Preferred Shares |
||||||||||||||||||||||||
Liquidation value, end of period (in 000’s) |
$ | 98,892 | $ | 98,892 | $ | 98,937 | $ | 100,000 | — | — | ||||||||||||||
Total shares outstanding (in 000’s) |
3,956 | 3,956 | 3,957 | 4,000 | — | — | ||||||||||||||||||
Liquidation preference per share |
$ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | — | — | ||||||||||||||
Average market value (c) |
$ | 25.67 | $ | 24.60 | $ | 24.10 | $ | 24.16 | — | — | ||||||||||||||
Asset coverage per share |
$ | 192.94 | $ | 156.75 | $ | 73.04 | $ | 158.31 | — | — | ||||||||||||||
Asset coverage |
772 | % | 627 | % | 292 | % | 633 | % | — | — | ||||||||||||||
| † | Based on net asset value per share, adjusted for reinvestment of distributions at the net asset value per share on the ex-dividend dates. Total return for a period of less than one year is not annualized. | |
| †† | Based on market value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan. Total return for a period of less than one year is not annualized. | |
| ††† | Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate to include cash proceeds due to mergers. Had this policy been adopted retroactively, the portfolio turnover rate for the year ended December 31, 2007 and the period ended December 31, 2005 would have been 77.7% and 143.3%, respectively. The portfolio turnover rate for the year ended 2006 would have been as shown. | |
| * | Based on year to date book income. Amounts are subject to change and recharacterization at year end. | |
| ** | Based on net asset value per share at commencement of operations of $19.06 per share. | |
| *** | Based on market value per share at initial public offering of $20.00 per share. | |
| (a) | Calculated based upon average common shares outstanding on the record dates throughout the periods. | |
| (b) | The Fund incurred interest expense during the years ended December 31, 2008, 2007, and 2006. If interest expense had not been incurred, the ratio of operating expenses to average net assets attributable to common shares would have been 1.54%, 1.33%, and 1.16%, respectively, and for 2008 and 2007, the ratio of operating expenses to average net assets including liquidation value of preferred shares would have been 1.25% and 1.27%, respectively. For the six months ended June 30, 2010 and the year ended December 31, 2009, the effect of interest expense was minimal. | |
| (c) | Based on weekly prices. | |
| (d) | Amount represents less than $0.005 per share. | |
| (e) | Annualized. | |
| (f) | The Fund commenced investment operations on March 31, 2005. | |
| (g) | The beginning of period NAV reflects a $0.04 reduction for costs associated with the initial public offering. |
See accompanying notes to financial statements.
11
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Organization. The Gabelli Global Gold, Natural Resources & Income Trust (the “Fund”) is a
non-diversified closed-end management investment company organized as a Delaware statutory trust on
January 4, 2005 and registered under the Investment Company Act of 1940, as amended (the “1940
Act”). Investment operations commenced on March 31, 2005.
The Fund’s primary investment objective is to provide a high level of current income. The
Fund’s secondary investment objective is to seek capital appreciation consistent with the Fund’s
strategy and its primary objective. Under normal market conditions, the Fund will attempt to
achieve its objectives by investing 80% of its assets in equity securities of companies principally
engaged in the gold and natural resources industries. As part of its investment strategy, the Fund
intends to earn income through an option strategy of writing (selling) covered call options on
equity securities in its portfolio. The Fund anticipates that it will invest at least 25% of its
assets in the equity securities of companies principally engaged in the exploration, mining,
fabrication, processing, distribution, or trading of gold, or the financing, managing and
controlling, or operating of companies engaged in “gold related” activities (“Gold Companies”). In
addition, the Fund anticipates that it will invest at least 25% of its assets in the equity
securities of companies principally engaged in the exploration, production, or distribution of
natural resources, such as gas and oil, paper, food and agriculture, forestry products, metals, and
minerals as well as related transportation companies and equipment manufacturers (“Natural
Resources Companies”). The Fund may invest in the securities of companies located anywhere in the
world.
The Fund may invest a high percentage of its assets in specific sectors of the market in order
to achieve a potentially greater investment return. As a result, the Fund may be more susceptible
to economic, political, and regulatory developments in a particular sector of the market, positive
or negative, and may experience increased volatility to the Fund’s NAV and a magnified effect in
its total return.
2. Significant Accounting Policies. The Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) has become the exclusive reference of authoritative United States of
America (“U.S.”) generally accepted accounting principles (“GAAP”) recognized by the FASB to be
applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of
federal laws are also sources of authoritative GAAP for SEC registrants. The ASC has superseded all
existing non-SEC accounting and reporting standards. The Fund’s financial statements are prepared
in accordance with GAAP, which may require the use of management estimates and assumptions. Actual
results could differ from those estimates. The following is a summary of significant accounting
policies followed by the Fund in the preparation of its financial statements.
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 (the “Adviser”).
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 sixty 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 sixty
12
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
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. U.S. government obligations with maturities greater than sixty days
are normally valued using a model that incorporates market observable data such as reported sales
of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities
are valued principally using dealer quotations.
Securities and assets for which market quotations are not readily available are fair valued as
determined by the Board. Fair valuation methodologies and procedures may include, but are not
limited to: analysis and review of available financial and non-financial information about the
company; comparisons with the valuation and changes in valuation of similar securities, including a
comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close
of the U.S. exchange; and evaluation of any other information that could be indicative of the value
of the security.
The inputs and valuation techniques used to measure fair value of the Fund’s investments are
summarized into three levels as described in the hierarchy below:
| • | Level 1 — quoted prices in active markets for identical securities; | ||
| • | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and | ||
| • | Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the
risk associated with investing in those securities. The summary of the Fund’s investments in
securities and other financial instruments by inputs used to value the Fund’s investments as of
June 30, 2010 is as follows:
| Valuation Inputs | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Quoted | Other Significant | Significant | Market Value | |||||||||||||
| Prices | Observable Inputs | Unobservable Inputs | at 6/30/10 | |||||||||||||
INVESTMENTS IN SECURITIES: |
||||||||||||||||
ASSETS (Market Value): |
||||||||||||||||
Common Stocks: |
||||||||||||||||
Energy and Energy Services |
$ | 225,231,055 | — | $ | 0 | $ | 225,231,055 | |||||||||
Other Industries (a) |
429,364,495 | — | — | 429,364,495 | ||||||||||||
Total Common Stocks |
654,595,550 | — | 0 | 654,595,550 | ||||||||||||
Convertible Preferred Stocks (a) |
3,164,050 | — | — | 3,164,050 | ||||||||||||
Warrants: |
||||||||||||||||
Energy and Energy Services |
— | — | 0 | 0 | ||||||||||||
Metals and Mining |
328,777 | $ | 665,774 | — | 994,551 | |||||||||||
Total Warrants |
328,777 | 665,774 | 0 | 994,551 | ||||||||||||
Convertible Corporate Bonds |
— | 12,980,117 | — | 12,980,117 | ||||||||||||
Corporate Bonds |
— | 21,460,147 | 828,815 | 22,288,962 | ||||||||||||
U.S. Government Obligations |
— | 97,966,772 | — | 97,966,772 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES — ASSETS |
$ | 658,088,377 | $ | 133,072,810 | $ | 828,815 | $ | 791,990,002 | ||||||||
INVESTMENTS IN SECURITIES: |
||||||||||||||||
LIABILITIES (Market Value): |
||||||||||||||||
EQUITY CONTRACTS: |
||||||||||||||||
Call Options Written |
$ | (15,380,337 | ) | $ | (5,797,116 | ) | $ | — | $ | (21,177,453 | ) | |||||
Put Options Written |
(3,564,875 | ) | (6,928,585 | ) | — | (10,493,460 | ) | |||||||||
TOTAL INVESTMENTS IN SECURITIES — LIABILITIES |
$ | (18,945,212 | ) | $ | (12,725,701 | ) | $ | — | $ | (31,670,913 | ) | |||||
| (a) | Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings. |
13
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The Fund did not have significant transfers between Level 1 and Level 2 during the
reporting period.
The following is a reconciliation of Level 3 investments for which significant unobservable
inputs were used to determine fair value:
| Net change | ||||||||||||||||||||||||||||||||||||
| in unrealized | ||||||||||||||||||||||||||||||||||||
| appreciation/ | ||||||||||||||||||||||||||||||||||||
| depreciation | ||||||||||||||||||||||||||||||||||||
| Change in | during the | |||||||||||||||||||||||||||||||||||
| Balance | Accrued | Realized | unrealized | Net | Transfers | Transfers | Balance | period on Level 3 | ||||||||||||||||||||||||||||
| as of | discounts/ | gain/ | appreciation/ | purchases/ | into | out of | as of | investments held | ||||||||||||||||||||||||||||
| 12/31/09 | (premiums) | (loss) | depreciation† | (sales) | Level 3†† | Level 3†† | 6/30/10 | at 6/30/10† | ||||||||||||||||||||||||||||
INVESTMENTS IN SECURITIES: |
||||||||||||||||||||||||||||||||||||
ASSETS (Market Value): |
||||||||||||||||||||||||||||||||||||
Common Stocks: |
||||||||||||||||||||||||||||||||||||
Energy and Energy Services |
$ | 0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0 | $ | — | ||||||||||||||||||
Warrants: |
||||||||||||||||||||||||||||||||||||
Energy and Energy Services |
0 | — | — | — | — | — | — | 0 | — | |||||||||||||||||||||||||||
Corporate Bonds |
768,131 | 21,994 | — | (264,727 | ) | 303,417 | — | — | 828,815 | (264,727 | ) | |||||||||||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES |
$ | 768,131 | $ | 21,994 | $ | — | $ | (264,727 | ) | $ | 303,417 | $ | — | $ | — | $ | 828,815 | $ | (264,727 | ) | ||||||||||||||||
| † | Net change in unrealized appreciation/depreciation on investments is included in the related amounts in the Statement of Operations. | |
| †† | The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period. |
In January 2010, the FASB issued amended guidance to improve disclosure about fair value
measurements which requires additional disclosures about transfers between Levels 1 and 2 and
separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of
fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing
disclosure requirements relating to the levels of disaggregation of fair value measurement and
inputs and valuation techniques used to measure fair value. Disclosures about purchases, sales,
issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are
effective for fiscal years beginning after December 15, 2010 and for interim periods within those
fiscal years. Management is currently evaluating the implications of this guidance on the Fund’s
financial statements. The remainder of the amended guidance is effective for financial statements
for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years.
Management has evaluated the impact of this guidance on the Fund’s financial statements and
determined that there is no impact as of June 30, 2010.
Derivative Financial Instruments.
The Fund may engage in various portfolio investment strategies by investing in a number of
derivative financial instruments for the purpose of increasing the income of the Fund. Investing in
certain derivative financial instruments, including participation in the options, futures, or swap
markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or
currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction
of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise
if the counterparty does not perform its duties under a contract, or that, in the event of default,
the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed
to it under derivative contracts. The creditworthiness of the counterparties is closely monitored
in order to minimize these risks. Participation in derivative transactions involves investment
risks, transaction costs, and potential losses to which the Fund would not be subject absent the
use of these strategies. The consequences of these risks, transaction costs, and losses may have a
negative impact on the Fund’s ability to pay distributions.
14
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The Fund’s derivative contracts held at June 30, 2010, if any, are not accounted for as
hedging instruments under GAAP.
Swap Agreements. The Fund may enter into equity and contract for difference swap transactions for
the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity
that involves investment techniques and risks different from those associated with ordinary
portfolio security transactions. In a swap, a set of future cash flows is 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. Depending on the general state of short-term interest
rates and the returns on the Fund’s portfolio securities at the time a 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.
Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a
liability in the Statement of Assets and Liabilities. 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
gain or loss in the Statement of Operations. A realized gain or loss is recorded upon payment or
receipt of a periodic payment or termination of swap agreements. During the six months ended June
30, 2010, the Fund had no investments in equity swap agreements.
Options. The Fund may purchase or write call or put options on securities or indices for the
purpose of increasing the income of the Fund. As a writer of put options, the Fund receives a
premium at the outset and then bears the risk of unfavorable changes in the price of the financial
instrument underlying the option. The Fund would incur a loss if the price of the underlying
financial instrument decreases between the date the option is written and the date on which the
option is terminated. The Fund would realize a gain, to the extent of the premium, if the price of
the financial instrument increases between those dates. If a written call option is exercised, the
premium is added to the proceeds from the sale of the underlying security in determining whether
there has been a realized gain or loss. If a written put option is exercised, the premium reduces
the cost basis of the security.
As a purchaser of put options, the Fund pays a premium for the right to sell to the seller of the
put option the underlying security at a specified price. The seller of the put has the obligation
to purchase the underlying security upon exercise at the exercise price. If the price of the
underlying security declines, the Fund would realize a gain upon sale or exercise. If the price of
the underlying security increases or stays the same, the Fund would realize a loss upon sale or at
the expiration date, but only to the extent of the premium paid.
In the case of call options, these exercise prices are referred to as “in-the-money”,
“at-the-money”, and “out-of-the-money”, respectively. The Fund may write (a) in-the-money call
options when the Adviser expects that the price of the underlying security will remain stable or
decline during the option period, (b) at-the-money call options when the Adviser expects that the
price of the underlying security will remain stable, decline, or advance moderately during the
option period, and (c) out-of-the-money call options when the Adviser expects that the premiums
received from writing the call option will be greater than the appreciation in the price of the
underlying security above the exercise price. By writing a call option, the Fund limits its
opportunity to profit from any increase in the market value of the underlying security above the
exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the
reverse of call options as to the relation of exercise price to market price) may be utilized in
the same market environments that such call options are used in equivalent transactions. Option
positions that were held at June 30, 2010 are presented within the Schedule of Investments.
15
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The Fund’s volume of activity in equity options contracts during the six months ended June 30,
2010 had an average monthly premium amount of approximately $24,428,275. Please refer to Note 4 for
option activity during the six months ended June 30, 2010.
As of June 30, 2010, the value of option positions that were held with equity risk exposure can be
found in the Statement of Assets and Liabilities under Liabilities, Call options written and Put
options written.
For the six months ended June 30, 2010, the effect of option positions with equity risk exposure
can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on
Investments, Swap Contracts, Securities Sold Short, Written Options, and Foreign Currency, Net
realized gain on written options and Net change in unrealized depreciation on written options.
Repurchase Agreements. The Fund may enter into repurchase agreements with primary government
securities dealers recognized by the Federal Reserve Board, with member banks of the Federal
Reserve System, or with other brokers or dealers that meet credit guidelines established by the
Adviser and reviewed by the Board. Under the terms of a typical repurchase agreement, the Fund
takes possession of an underlying debt obligation subject to an obligation of the seller to
repurchase, and the Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund’s holding period. It is the policy of the Fund to receive and
maintain securities as collateral whose market value is not less than their repurchase price. The
Fund will make payment for such securities only upon physical delivery or upon evidence of book
entry transfer of the collateral to the account of the custodian. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is marked-to-market on a daily
basis to maintain the adequacy of the collateral. If the seller defaults and the value of the
collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or limited. At June 30, 2010,
there were no open repurchase agreements.
Investments in other Investment Companies. The Fund may invest, from time to time, in shares
of other investment companies (or entities that would be considered investment companies but are
excluded from the definition pursuant to certain exceptions under the 1940 Act) (the “Acquired
Funds”) in accordance with the 1940 Act and related rules. Shareholders in the Fund bear the pro
rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For
the six months ended June 30, 2010, the Fund did not hold any Acquired Funds.
Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves
selling securities that may or may not be owned and, at times, borrowing the same securities for
delivery to the purchaser, with an obligation to replace such borrowed securities at a later date.
The proceeds received from short sales are recorded as liabilities and the Fund records an
unrealized gain or loss to the extent of the difference between the proceeds received and the value
of an open short position on the day of determination. The Fund records a realized gain or loss
when the short position is closed out. By entering into a short sale, the Fund bears the market
risk of an unfavorable change in the price of the security sold short. Dividends on short sales are
recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the
accrual basis. At June 30, 2010, there were no open securities sold short.
Foreign Currency Translations. The books and records of the Fund are maintained in U.S.
dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S.
dollars at the current exchange rates. Purchases and sales of investment securities, income, and
expenses are translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or
changes in
16
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
market prices of securities have been included in unrealized appreciation/depreciation on
investments and foreign currency translations. Net realized foreign currency gains and losses
resulting from changes in exchange rates include foreign currency gains and losses between trade
date and settlement date on investment securities transactions, foreign currency transactions, and
the difference between the amounts of interest and dividends recorded on the books of the Fund and
the amounts actually received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade
date is included in realized gain/loss on investments.
Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in
securities of foreign issuers involves special risks not typically associated with investing in
securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to
repatriate funds, less complete financial information about companies, and possible future adverse
political and economic developments. Moreover, securities of many foreign issuers and their markets
may be less liquid and their prices more volatile than those of securities of comparable U.S.
issuers.
Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or
currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and
recoveries as applicable, based upon its current interpretation of tax rules and regulations that
exist in the markets in which it invests.
Securities Transactions and Investment Income. Securities transactions are accounted for on
the trade date with realized gain or loss on investments determined by using the identified cost
method. Interest income (including amortization of premium and accretion of discount) is recorded
on the accrual basis. Premiums and discounts on debt securities are amortized using the effective
yield to maturity method. Dividend income is recorded on the ex-dividend date except for certain
dividends which are recorded as soon as the Fund is informed of the dividend.
Custodian Fee Credits and Interest Expense. When cash balances are maintained in the custody
account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid
under the custody arrangement are included in custodian fees in the Statement of Operations with
the corresponding expense offset, if any, shown as “custodian fee credits.” When cash balances are
overdrawn, the Fund is charged an overdraft fee equal to 110% of the 90 day Treasury Bill rate on
outstanding balances. This amount, if any, would be included in “interest expense” in the Statement
of Operations. There were no custodian fee credits earned during the six months ended June 30,
2010.
Distributions to Shareholders. Distributions to common shareholders are recorded on the
ex-dividend date. Distributions to shareholders are based on income and capital gains as determined
in accordance with federal income tax regulations, which may differ from income and capital gains
as determined under GAAP. These differences are primarily due to differing treatments of income and
gains on various investment securities and foreign currency transactions held by the Fund, timing
differences, and differing characterizations of distributions made by the Fund. Distributions from
net investment income for federal income tax purposes include net realized gains on foreign
currency transactions. These book/tax differences are either temporary or permanent in nature. To
the extent these differences are permanent, adjustments are made to the appropriate capital
accounts in the period when the differences arise. These reclassifications have no impact on the
NAV of the Fund.
Distributions to shareholders of the Fund’s 6.625% Series A Cumulative Preferred Shares are
recorded on a daily basis.
17
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The tax character of distributions paid during the year ended December 31, 2009 was as
follows:
| Year Ended | ||||||||
| December 31, 2009 | ||||||||
| Common | Preferred | |||||||
Distributions paid from: |
||||||||
Ordinary income
(inclusive of short-term capital gains) |
$ | 12,246,692 | $ | 4,958,450 | ||||
Net long-term capital gains |
3,844,859 | 1,556,710 | ||||||
Return of capital |
22,238,654 | — | ||||||
Total distributions paid |
$ | 38,330,205 | $ | 6,515,160 | ||||
Provision for Income Taxes. The Fund intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the
“Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to
regulated investment companies and to distribute substantially all of its net investment company
taxable income and net capital gains. Therefore, no provision for federal income taxes is required.
As of December 31, 2009, the components of accumulated earnings/losses on a tax basis were as
follows:
Net unrealized appreciation on investments,
written options, and foreign currency translations |
$ | 3,948,447 | ||
Other temporary differences* |
(856,241 | ) | ||
Total |
$ | 3,092,206 | ||
| * | Other temporary differences are primarily due to adjustments on preferred share class distribution payables, income from investments in hybrid securities, and straddle losses outstanding. |
The following summarizes the tax cost of investments, written options, and the related
net unrealized appreciation/depreciation at June 30, 2010:
| Gross | Gross | Net Unrealized | ||||||||||||||
| Cost/ | Unrealized | Unrealized | Appreciation/ | |||||||||||||
| Premiums | Appreciation | Depreciation | Depreciation | |||||||||||||
Investments |
$ | 842,759,240 | $ | 53,003,654 | $ | (103,772,892 | ) | $ | (50,769,238 | ) | ||||||
Written options |
(35,060,375 | ) | 10,509,061 | (7,119,599 | ) | 3,389,462 | ||||||||||
| $ | 807,698,865 | $ | 63,512,715 | $ | (110,892,491 | ) | $ | (47,379,776 | ) | |||||||
The Fund is required to evaluate tax positions taken or expected to be taken in the
course of preparing the Fund’s tax returns to determine whether the tax positions are
“more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related
interest and penalties would be recognized by the Fund as tax expense in the Statement of
Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the
six months ended June 30, 2010, the Fund did not incur any income tax, interest, or penalties. As
of June 30, 2010, the Adviser has reviewed all open tax years and concluded that there was no
impact to the Fund’s net assets or results of operations. Tax years ended December 31, 2007 through
December 31, 2009, remain subject to examination by the Internal Revenue Service and state taxing
authorities. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if
adjustments to this conclusion are necessary.
3. Agreements and Transactions with Affiliates. The Fund has entered into an investment advisory
agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the
Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of
the Fund’s average weekly net assets including the
18
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
liquidation value of preferred shares. In accordance with the Advisory Agreement, the Adviser
provides a continuous investment program for the Fund’s portfolio and oversees the administration
of all aspects of the Fund’s business and affairs.
The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory
Agreement between the Fund and the Adviser. During the six months ended June 30, 2010, the Fund
paid or accrued $22,500 to the Adviser in connection with the cost of computing the Fund’s NAV.
As per the approval of the Board, the Fund compensates officers of the Fund, who are employed
by the Fund and are not employed by the Adviser (although the officers may receive incentive based
variable compensation from affiliates of the Adviser) and pays its allocated portion of the cost of
the Fund’s Chief Compliance Officer. For the six months ended June 30, 2010, the Fund paid or
accrued $72,730 in payroll expenses in the Statement of Operations.
The Fund pays each Trustee who is not considered an affiliated person an annual retainer of
$6,000 plus $1,000 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any
out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per
meeting attended, the Audit Committee Chairman receives an annual fee of $3,000, the Nominating
Committee Chairman receives an annual fee of $2,000, and the Lead Trustee receives an annual fee of
$1,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for
participation in certain meetings held on behalf of multiple funds. Trustees who are directors or
employees of the Adviser or an affiliated company receive no compensation or expense reimbursement
from the Fund.
4. Portfolio Securities. Purchases and sales of securities for the six months ended June 30, 2010,
other than short-term securities and U.S. Government obligations, aggregated $256,627,284 and
$100,910,339, respectively.
Sales of U.S. Government obligations for the six months ended June 30, 2010, other than
short-term obligations, aggregated $7,999,229.
Written options activity for the Fund for the six months ended June 30, 2010 was as follows:
| Number of | ||||||||
| Contracts | Premiums | |||||||
Options outstanding at December 31, 2009 |
164,312 | $ | 20,812,335 | |||||
Stock splits on options |
450 | — | ||||||
Options written |
468,611 | 60,341,830 | ||||||
Options repurchased |
(203,415 | ) | (21,657,394 | ) | ||||
Options expired |
(187,822 | ) | (21,433,255 | ) | ||||
Options exercised |
(23,987 | ) | (3,003,141 | ) | ||||
Options outstanding at June 30, 2010 |
218,149 | $ | 35,060,375 | |||||
5. Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial
interest (par value $0.001). The Board has authorized the repurchase of its shares in the open
market when the shares are trading at a discount of 7.5% or more (or such other percentage as the
Board may determine from time to time) from the NAV of the shares. During the six months ended June
30, 2010, the Fund did not repurchase any shares of beneficial interest.
The Fund filed a second $350,000,000 shelf offering with the SEC that was effective February
10, 2010, enabling the the Fund to offer additional common and preferred shares. The first
$350,000,000 shelf offering became effective September 24, 2007. This shelf offering also gave the
Fund the ability to offer additional common and preferred shares.
19
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
On October 16, 2007, the Fund completed the placement of $100 million of Cumulative
Preferred Shares (“Preferred Shares”). The Fund received net proceeds of $96,450,000 (after
underwriting discounts of $3,150,000 and offering expenses of $400,000) from the public offering of
4,000,000 shares of 6.625% Series A Cumulative Preferred Shares. The Preferred Shares are senior to
the common shares and result in the financial leveraging of the common shares. Such leveraging
tends to magnify both the risks and opportunities to common shareholders. Dividends on the 6.625%
Series A Preferred Shares are cumulative. The Fund is required by the 1940 Act and by the Statement
of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. If the
Fund fails to meet these requirements and does not correct such failure, the Fund may be required
to redeem, in part or in full, the Preferred Shares at the redemption price of $25 per share plus
an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in
order to meet the requirements. Additionally, failure to meet the foregoing asset coverage
requirements could restrict the Fund’s ability to pay dividends to common shareholders and could
lead to sales of portfolio securities at inopportune times. The income received on the Fund’s
assets may vary in a manner unrelated to the fixed rate, which could have either a beneficial or
detrimental impact on net investment income and gains available to common shareholders.
Commencing October 16, 2012, and at any time thereafter, the Fund, at its option, may redeem
the Preferred Shares in whole or in part at the redemption price. The Board has authorized the
repurchase of the Preferred Shares in the open market at prices less than the $25 liquidation value
per share. During the six months ended June 30, 2010, the Fund did not repurchase any shares of
6.625% Series A Cumulative Preferred Shares. At June 30, 2010, 3,955,687 Preferred Shares were
outstanding and accrued dividends amounted to $54,597.
During the six months ended June 30, 2010, the Fund issued 11,976,900 shares of beneficial
interest through various “at the market offerings”. The net proceeds received from these various
offerings were $196,503,590 (net of sales manager commissions of $1,987,475 and offering expenses
of $256,416). The net proceeds received from the various offerings exceeded the NAV of the shares
by $9,134,558.
During the year ended December 31, 2009, the Fund issued 13,989,100 shares of beneficial
interest through various “at the market offerings.” The net proceeds received from these various
offerings was $207,429,594 (net of sales manager commissions of $3,797,829 and offering expenses of
$421,000). The net proceeds received from the various offerings exceeded the NAV of the shares by
$6,249,864.
Gabelli & Company, Inc., an affiliate of the Adviser, acted as sales manager for all of the
offerings and collected sales manager commissions of $1,987,475.
As of June 30, 2010, after considering the issuance of the preferred and common shares, the
Fund has approximately $189,000,000 available for issuance under the shelf offering.
20
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
Transactions in shares of beneficial interest were as follows:
| Six Months Ended | ||||||||||||||||
| June 30, 2010 | Year Ended | |||||||||||||||
| (Unaudited) | December 31, 2009 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares issued pursuant to shelf offerings |
11,976,900 | $ | 196,760,006 | 13,989,100 | $ | 207,850,594 | ||||||||||
Net increase from shares issued
upon reinvestment of distributions |
278,056 | 4,386,941 | 469,004 | 6,768,233 | ||||||||||||
Total |
12,254,956 | $ | 201,146,947 | 14,458,104 | $ | 214,618,827 | ||||||||||
6. Indemnifications. The Fund enters into contracts that contain a variety of
indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the
Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the
Fund’s existing contracts and expects the risk of loss to be remote.
7. Other Matters. On April 24, 2008, the Investment Adviser entered into a settlement with the SEC
to resolve an inquiry regarding prior frequent trading activity in shares of the GAMCO Global
Growth Fund (the “Global Growth Fund”) by one investor who was banned from the Global Growth Fund
in August 2002. In an administrative order that was entered in connection with the settlement, the
SEC found that the Investment Adviser had willfully violated Section 206(2) of the Investment
Advisers Act of 1940, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had willfully
aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms
of the settlement, the Investment Adviser, while neither admitting nor denying the SEC’s findings
and allegations, paid $16 million (which included a $5 million civil monetary penalty),
approximately $12.8 million of which is in the process of being paid to shareholders of the Global
Growth Fund in accordance with a plan developed by an independent distribution consultant and
approved by the independent directors of the Global Growth Fund and acceptable to the staff of the
SEC, and agreed to cease and desist from future violations of the above referenced federal
securities laws. The SEC’s order also noted the cooperation that the Investment Adviser gave the
staff of the SEC. The settlement will not have a material adverse impact on the Investment Adviser
or its ability to fulfill its obligations under the Investment Advisory Agreement. On the same day,
the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of
the Investment Adviser, alleging violations of certain federal securities laws arising from the
same matter. The officer is also an officer of the Fund, the Global Growth Fund, and other funds in
the Gabelli/GAMCO fund complex. The officer denied the allegations and is continuing in his
positions with the Investment Adviser and the funds. The court dismissed certain claims, finding
that the SEC was not entitled to pursue various remedies against the officer while leaving one
remedy in the event the SEC were able to prove violations of law. The court, in response to a
motion by the SEC, subsequently dismissed the remaining remedy without prejudice against the
officer, which would allow the SEC to appeal the court’s rulings. The Investment Adviser currently
expects that any resolution of the action against the officer will not have a material adverse
impact on the Investment Adviser or its ability to fulfill its obligations under the Investment
Advisory Agreement.
8. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events
occurring through the date the financial statements were issued and has determined that there were
no subsequent events requiring recognition or disclosure in the financial statements.
21
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
Board Consideration and Approval of Advisory Agreement (Unaudited)
At its meeting on February 24, 2010, the Board of Trustees (“Board”) of the Fund approved the
continuation of the investment advisory agreement with the Adviser for the Fund on the basis of the
recommendation by the trustees who are not “interested persons” of the Fund (the “Independent Board
Members”). The following paragraphs summarize the material information and factors considered by
the Independent Board Members as well as their conclusions relative to such factors.
Nature, Extent, and Quality of Services. The Independent Board Members considered information
regarding the portfolio managers, the depth of the analyst pool available to the Adviser and the
portfolio managers, the scope of administrative, shareholder, and other services supervised or
provided by the Adviser and the absence of significant service problems reported to the Board. The
Independent Board Members noted the experience, length of service, and reputation of the portfolio
managers.
Investment Performance. The Independent Board Members reviewed the performance of the Fund since
inception against a peer group of sector options arbitrage and options strategies closed-end funds
prepared by Lipper. The Independent Board Members noted that the Fund’s performance was in the top
decile for the one year period and in the third quartile for the three year period.
Profitability. The Independent Board Members reviewed summary data regarding the profitability of
the Fund to the Adviser both with an administrative overhead charge and without such a charge.
Economies of Scale. The Independent Board Members discussed the major elements of the Adviser’s
cost structure and the relationship of those elements to potential economies of scale.
Sharing of Economies of Scale. The Independent Board Members noted that the investment management
fee schedule for the Fund does not take into account any potential sharing of economies of scale.
Service and Cost Comparisons. The Independent Board Members compared the expense ratios of the
investment management fee, other expenses, and total expenses of the Fund with similar expense
ratios of the peer group of options arbitrage and options strategies closed-end funds and noted
that the Adviser’s management fee includes substantially all administrative services of the Fund as
well as investment advisory services. The Independent Board Members noted that within this group,
the Fund’s expense ratios were higher than average and the Fund’s size was somewhat above average.
The Independent Board Members also noted that the management fee structure was the same as that in
effect for most of the Gabelli funds, except for the presence of leverage and fees chargeable as
assets attributable to leverage in certain circumstances. The Independent Board Members recognized
that the Adviser and its affiliates did not manage other accounts with similar strategies or fees
lower than those charged for the Fund.
Conclusions. The Independent Board Members concluded that the Fund enjoyed highly experienced
portfolio management services and good ancillary services, and that the performance record, which
at this point was relatively short-term only, had been both excellent and poor during various
reporting periods and that the Independent Board Members would continue to review performance
carefully as the Fund’s performance record lengthened. The Independent Board Members concluded that
the profitability to the Adviser of managing the Fund was reasonable and that economies of scale
were not a significant factor in their thinking. The Independent Board Members did not view the
potential profitability of ancillary services as material to their decision. On the basis of the
foregoing and without assigning particular weight to any single conclusion, the Independent Board
Members determined to recommend continuation of the Advisory Agreement to the full Board.
22
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
One Corporate Center, Rye, NY 10580-1422
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
One Corporate Center, Rye, NY 10580-1422
Trustees |
Anthony J. Colavita |
President, |
Anthony J. Colavita, P.C. |
James P. Conn |
Former Managing Director & |
Chief Investment Officer, |
Financial Security Assurance Holdings Ltd. |
Mario d’Urso |
Former Italian Senator |
Vincent D. Enright |
Former Senior Vice President & |
Chief Financial Officer, |
KeySpan Corp. |
Frank J. Fahrenkopf, Jr. |
President & Chief Executive Officer, |
American Gaming Association |
Michael J. Melarkey |
Attorney-at-Law, |
Avansino, Melarkey, Knobel & Mulligan |
Salvatore M. Salibello |
Certified Public Accountant, |
Salibello & Broder, LLP |
Anthonie C. van Ekris |
Chairman, BALMAC International, Inc. |
Salvatore J. Zizza |
Chairman, Zizza & Co., Ltd. |
Officers* |
Bruce N. Alpert |
President & Acting Treasurer |
Carter W. Austin |
Vice President |
Peter D. Goldstein |
Chief Compliance Officer & Acting Secretary |
Molly A.F. Marion |
Vice President & Ombudsman |
Laurissa M. Martire |
Vice President & Ombudsman |
David I. Schachter |
Vice President |
Investment Adviser |
Gabelli Funds, LLC |
One Corporate Center |
Rye, New York 10580-1422 |
Custodian |
The Bank of New York Mellon |
Counsel |
Skadden, Arps, Slate, Meagher & Flom LLP |
Transfer Agent and Registrar |
American Stock Transfer and Trust Company |
| Stock Exchange Listing | 6.625% | |||
| Common | Preferred | |||
NYSE Amex–Symbol: |
GGN | GGN PrA | ||
Shares Outstanding: |
45,016,217 | 3,955,687 |
| * | Agnes Mullady, Treasurer and Secretary, is on a leave of absence. |
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 or visiting ww.gabelli.com.
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 Fund may also, from time to time, purchase its preferred shares in the open market
when the preferred shares are trading at a discount to the liquidation value.
| THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST One Corporate Center Rye, NY 10580-1422 (914) 921-5070 www.gabelli.com Semi Annual Report June 30, 2010 GGN Q2/2010 |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. | |
| (b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
There has been no change, as of the date of this filing, in any of the portfolio managers
identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed
annual report on Form N-CSR.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
| (c) Total Number of | (d) Maximum Number (or | |||||||
| Shares (or Units) | Approximate Dollar Value) of | |||||||
| (a) Total Number of | Purchased as Part of | Shares (or Units) that May | ||||||
| Shares (or Units) | (b) Average Price Paid | Publicly Announced | Yet Be Purchased Under the | |||||
| Period | Purchased | per Share (or Unit) | Plans or Programs | Plans or Programs | ||||
Month #1 01/01/10 through 01/31/10 |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – 34,838,539 Preferred Series A – 3,955,687 |
||||
Month #2 02/01/10 through 02/28/10 |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – 36,138,968 Preferred Series A – 3,955,687 |
||||
Month #3 03/01/10 through 03/31/10 |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – 36,334,390 Preferred Series A – 3,955,687 |
||||
Month #4 04/01/10 through 04/30/10 |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – 38,108,265 Preferred Series A – 3,955,687 |
||||
Month #5 05/01/10 through 05/31/10 |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – 41,917,997 Preferred Series A – 3,955,687 |
||||
Month #6 06/01/10 through 06/30/10 |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – 45,016,217 Preferred Series A – 3,955,687 |
||||
Total
|
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
Common – N/A Preferred Series A – N/A |
N/A |
Footnote columns (c) and (d) of the table, by disclosing the following information in the
aggregate for all plans or programs publicly announced:
| a. | The date each plan or program was announced – The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended. |
| b. | The dollar amount (or share or unit amount) approved – Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 7.5% or more from the net asset value of the shares. |
| Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00. |
| c. | The expiration date (if any) of each plan or program – The Fund’s repurchase plans are ongoing. |
| d. | Each plan or program that has expired during the period covered by the table – The Fund’s repurchase plans are ongoing. | |
| e. | Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases. – The Fund’s repurchase plans are ongoing. |
Item 10. Submission of Matters to a Vote of Security Holders.
On January 15, 2010, the Board of Trustees of The Gabelli Global Gold, Natural Resources & Income
Trust (the “Fund”) approved and adopted an amendment (the “Amendment”) to the By-Laws of the
Fund. The Amendment was effective as of January 15, 2010. The Amendment sets forth the processes
and procedures that shareholders of the Fund must follow, and specifies additional information that
shareholders of the Fund must provide, when proposing trustee nominations at any annual or special
meeting of shareholders or other business to be considered at an annual meeting of shareholders.
Item 11. 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
| (a)(1) | Not applicable. |
| (a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | ||
| (a)(3) | Not applicable. | ||
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 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 | |||
Principal Executive Officer |
Date 9/1/10
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 | |||
| Principal Executive Officer & | ||||
| Principal Financial Officer | ||||
Date 9/1/10 |
| * | Print the name and title of each signing officer under his or her signature. |