UNITED STATES
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
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The Gabelli Global Gold, Natural Resources & Income Trust
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: June 30, 2005
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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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[GRAPHIC OMITTED]
THE GABELLI
GLOBAL GOLD,
NATURAL RESOURCES
& INCOME TRUST
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
Semi-Annual Report
June 30, 2005
TO OUR SHAREHOLDERS,
The Gabelli Global Gold, Natural Resources & Income Trust commenced
operations on March 29, 2005 with a net asset value of $19.06 per share and a
market price of $20.00 per share. On June 30, 2005 the Trust had a net asset
value of $19.67 per share and a market price of $19.75 per share. The Trust paid
its first distribution on June 24, 2005 to shareholders of record on June 16 in
the amount of $0.14 per share.
WWW.GABELLI.COM
Please visit us on the Internet. Our homepage at www.gabelli.com contains
information about Gabelli Asset Management Inc., the Gabelli Mutual Funds, IRAs,
401(k)s, current and historical quarterly reports, closing prices and other
current news. We welcome your comments and questions via e-mail at
closedend@gabelli.com.
You may sign up for our e-mail alerts at www.gabelli.com and receive early
notice of quarterly report availability, news events, media sightings and mutual
fund prices and performance.
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We have separated the portfolio manager's 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 manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately. Both the commentary
and the financial statements, including the portfolio of investments, will be
available on our website at www.gabelli.com/funds.
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THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total net
assets:
LONG POSITIONS
Metals and Mining ............................... 53.2%
Energy and Utilities ............................ 35.2%
U.S. Government Obligations ..................... 10.1%
Paper and Forest Products ....................... 4.5%
Specialty Chemicals ............................. 1.4%
Liabilities in Excess of Other Assets ........... (0.5)%
SHORT POSITIONS
Put Options Written ............................. (0.0)%
Call Options Written ............................ (3.9)%
------
100.0%
======
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST (THE "TRUST") FILES A
COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE FIRST AND THIRD
QUARTERS OF EACH YEAR FISCAL YEAR ON FORM N-Q, THE FIRST OF WHICH WAS FILED FOR
THE QUARTER ENDING MARCH 31, 2005. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT
WWW.GABELLI.COM OR BY CALLING THE TRUST AT 800-GABELLI (800-422-3554). THE
TRUST'S FORM N-Q IS AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO
BE REVIEWED AND COPIED AT THE COMMISSION'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 Trust files form N-PX with its complete proxy voting record for the 12
months ended June 30th, no later than August 31st of each year. A description of
the Trust's proxy voting policies and procedures are available without charge,
upon request, (i) by calling 800-GABELLI (800-422-3554); (ii) by writing to The
Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; and (iii) by visiting
the Securities and Exchange Commission's website at www.sec.gov.
2
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 94.3%
ENERGY AND UTILITIES -- 35.2%
135,600 BG Group plc, ADR ....... $ 5,374,556 $ 5,640,960
80,000 BJ Services Co. ......... 4,207,500 4,198,400
50,000 BP plc, ADR ............. 3,071,750 3,119,000
88,000 Burlington
Resources Inc. ........ 4,924,480 4,861,120
51,200 Chevron Corp. ........... 2,926,551 2,863,104
80,000 ConocoPhillips(e) ....... 4,170,126 4,599,200
112,000 Devon Energy Corp.(e) ... 5,141,736 5,676,160
80,000 Exxon Mobil Corp.(e) .... 4,641,475 4,597,600
208,300 GlobalSantaFe Corp. ..... 7,564,854 8,498,640
86,000 Halliburton Co. ......... 3,679,217 4,112,520
41,399 Kerr-McGee Corp. ........ 3,014,384 3,159,158
57,600 Marathon Oil Corp. ...... 2,883,098 3,074,112
120,000 Murphy Oil Corp. ........ 5,688,334 6,267,600
44,600 Nabors Industries
Ltd.+ ................. 2,416,376 2,703,652
108,400 Noble Corp. ............. 6,349,228 6,667,684
60,000 Norsk Hydro ASA ......... 4,964,561 5,509,389
122,400 Rowan Companies Inc. .... 3,470,894 3,636,504
88,000 Suncor Energy Inc. ...... 4,072,260 4,164,160
60,000 Tesoro Corp. ............ 2,353,800 2,791,200
40,000 Total SA, ADR ........... 4,651,600 4,674,000
85,000 Transocean Inc.+ ........ 4,429,050 4,587,450
78,000 Unocal Corp. ............ 4,344,280 5,073,900
104,100 Valero Energy Corp.(e) .. 7,415,186 8,235,351
101,500 Weatherford
International Ltd.+ ... 5,434,763 5,884,970
126,000 Williams Companies Inc. . 2,247,877 2,394,000
156,000 XTO Energy Inc.(e) ...... 4,834,647 5,302,440
------------ ------------
114,272,583 122,292,274
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METALS AND MINING -- 53.2%
560,000 Agnico-Eagle
Mines Ltd. ............ 7,472,130 7,056,000
172,000 Alcoa Inc.(e) ........... 4,836,990 4,494,360
120,000 Anglo American plc ...... 2,905,846 2,814,398
371,700 AngloGold Ashanti Ltd.,
ADR ................... 12,501,047 13,280,841
34,000 Arcelor ................. 711,937 667,377
600,000 Barrick Gold Corp.(e) ... 13,872,428 15,018,000
100,000 Bema Gold Corp.+ ........ 262,900 239,000
176,200 BHP Billiton Ltd., ADR .. 4,760,353 4,810,260
150,000 Compania de Minas
Buenaventura SA, ADR .. 3,135,000 3,448,500
409,900 Freeport-McMoRan
Copper & Gold Inc.,
Cl. B(e) .............. 15,130,124 15,346,656
532,200 Glamis Gold Ltd.+ ....... 7,925,716 9,159,162
1,270,100 Gold Fields Ltd., ADR ... 13,097,274 14,415,635
MARKET
SHARES COST VALUE
------ ---- ------
721,000 Goldcorp Inc.(e) ........ $ 9,737,750 $ 11,377,380
250,000 Golden Star
Resources Ltd.+ ....... 745,494 775,000
491,700 Harmony Gold Mining
Co. Ltd., ADR ......... 3,537,525 4,208,952
205,000 IAMGOLD Corp.,
New York .............. 1,183,770 1,398,100
330,000 IAMGOLD Corp.,
Toronto ............... 2,178,262 2,227,473
47,000 Inco Ltd. ............... 1,841,323 1,774,250
563,500 Ivanhoe Mines Ltd.,
New York+ ............. 4,039,928 4,378,395
98,000 Ivanhoe Mines Ltd.,
Toronto+ .............. 677,587 761,476
1,135,700 Kinross Gold Corp.+ ..... 6,092,200 6,927,770
4,300,000 Lihir Gold Ltd.+ ........ 3,389,100 3,993,239
547,500 Meridian Gold Inc.+ ..... 9,255,415 9,855,000
85,000 Newcrest Mining Ltd. .... 1,000,867 1,124,516
337,500 Newmont Mining Corp.(e) . 13,331,450 13,172,625
1,500,000 Oxiana Ltd.+ ............ 1,041,221 1,016,198
55,000 Peabody Energy Corp. .... 2,844,045 2,862,200
29,000 Phelps Dodge Corp. ...... 2,467,670 2,682,500
697,500 Placer Dome Inc.(e) ..... 9,925,068 10,727,550
505,000 Randgold Resources
Ltd., ADR+ ............ 6,381,272 7,100,300
30,000 Rio Tinto plc, ADR ...... 3,821,446 3,657,600
59,000 Teck Cominco Ltd.,
Cl. B ................. 1,987,814 1,990,744
86,791 Xstrata plc ............. 1,639,777 1,674,769
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173,730,729 184,436,226
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PAPER AND FOREST PRODUCTS -- 4.5%
78,000 International Paper Co. . 2,826,580 2,356,380
100,000 Plum Creek Timber
Co. Inc. .............. 3,521,762 3,630,000
83,000 Potlatch Corp. .......... 3,969,061 4,343,390
194,000 Smurfit-Stone
Container Corp.+ ...... 2,894,996 1,972,980
54,000 Weyerhaeuser Co. ........ 3,764,642 3,437,100
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16,977,041 15,739,850
------------ ------------
SPECIALTY CHEMICALS -- 1.4%
20,000 Dow Chemical Co. ........ 907,580 890,600
90,000 E.I. du Pont de
Nemours and Co. ....... 4,311,700 3,870,900
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5,219,280 4,761,500
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TOTAL COMMON
STOCKS ................. 310,199,633 327,229,850
------------ ------------
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
SHORT-TERM OBLIGATIONS -- 10.1%
U.S. GOVERNMENT OBLIGATIONS -- 10.1%
$35,245,000 U.S. Treasury Bills,
2.783% to 2.988%++,
07/14/05 to 09/15/05 .. $ 35,082,494 $ 35,080,031
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TOTAL SHORT-TERM
OBLIGATIONS ............ 35,082,494 35,080,031
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TOTAL INVESTMENTS -- 104.4% .......... $345,282,127 362,309,881
============
OPTIONS WRITTEN AND OTHER LIABILITIES IN
EXCESS OF OTHER ASSETS -- (4.4)% ................. (15,259,007)
------------
NET ASSETS -- COMMON SHARES
(17,640,164 common shares
outstanding) -- 100% ............................. $347,050,874
============
NET ASSET VALUE PER COMMON SHARE
($347,050,874 / 17,640,164
shares outstanding) ............................. $19.67
======
OPTION CONTRACTS WRITTEN-- (3.9)%
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS ISSUE EXERCISE PRICE VALUE
--------- ----- -------------- ------
PUT OPTIONS WRITTEN-- (0.0)%
50 AngloGold Ashanti Ltd.,
ADR ................... Jul. 05/35 $ 2,250
400 Barrick Gold Corp. ...... Jul. 05/25 20,000
250 Freeport-McMoRan Copper,
Cl. B ................. Aug. 05/35 18,750
100 Inco Ltd. ............... Oct. 05/35 14,500
375 Newmont Mining Corp. .... Jul. 05/37.50 9,375
650 Placer Dome Inc. ........ Jul. 05/15 16,250
650 Placer Dome Inc. ........ Aug. 05/15 42,250
150 Teck Cominco Ltd.,
Cl. B(a) .............. Aug. 05/38 9,182
------------
TOTAL PUT OPTIONS WRITTEN
(Premiums received $120,858) ......... $ 132,557
============
CALL OPTIONS WRITTEN -- (3.9)%
1,500 Agnico-Eagle Mines Ltd. . Jul. 05/12.50 $ 52,500
3,600 Agnico-Eagle Mines Ltd. . Aug. 05/15 36,000
200 Agnico-Eagle Mines Ltd. . Aug. 05/17.50 2,000
300 Agnico-Eagle Mines Ltd. . Nov. 05/15 9,000
640 Alcoa Inc. .............. Jul. 05/27.50 9,600
539 Alcoa Inc. .............. Jul. 05/30 2,695
300 Alcoa Inc. .............. Jul. 05/32.50 1,500
241 Alcoa Inc. .............. Oct. 05/30 6,025
50 Anglo American plc(b) ... Sep. 05/1300 47,480
70 Anglo American plc(b) ... Sep. 05/1350 36,999
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS ISSUE EXERCISE PRICE VALUE
--------- ----- -------------- ------
1,725 AngloGold Ashanti Ltd.,
ADR ................... Jul. 05/35 $ 207,000
725 AngloGold Ashanti Ltd.,
ADR ................... Jul. 05/40 3,625
532 AngloGold Ashanti Ltd.,
ADR ................... Oct. 05/35 164,920
735 AngloGold Ashanti Ltd.,
ADR ................... Oct. 05/40 58,800
1,506 Barrick Gold Corp. ...... Jul. 05/22.50 384,030
2,025 Barrick Gold Corp. ...... Jul. 05/25 101,250
188 Barrick Gold Corp. ...... Jul. 05/30 940
900 Barrick Gold Corp. ...... Oct. 05/22.50 288,000
606 Barrick Gold Corp. ...... Oct. 05/25 96,960
775 Barrick Gold Corp. ...... Oct. 05/30 19,375
700 Bema Gold Corp. ......... Jul. 05/2.50 7,000
300 Bema Gold Corp. ......... Oct. 05/5 2,250
900 BHP Billiton Ltd., ADR .. Jul. 05/30 4,500
100 BHP Billiton Ltd., ADR .. Aug. 05/25 28,500
120 BHP Billiton Ltd., ADR .. Aug. 05/30 3,900
170 BHP Billiton Ltd., ADR .. Aug. 05/35 1,700
472 BHP Billiton Ltd., ADR .. Nov. 05/30 47,200
20 BJ Services Co. ......... Jul. 05/55 900
600 BJ Services Co. ......... Jul. 05/60 6,000
180 BJ Services Co. ......... Aug. 05/60 6,750
240 BP plc, ADR ............. Jul. 05/60 72,000
100 BP plc, ADR ............. Jul. 05/65 2,000
160 BP plc, ADR ............. Oct. 05/65 24,000
400 Burlington Resources Inc. Jul. 05/60 2,000
80 Burlington Resources Inc. Aug. 05/55 21,200
400 Burlington Resources Inc. Aug. 05/65 9,000
162 Chevron Corp. ........... Jul. 05/60 1,620
200 Chevron Corp. ........... Aug. 05/60 12,000
52 Chevron Corp. ........... Sep. 05/55 14,560
98 Chevron Corp. ........... Sep. 05/65 1,960
925 Compania de Minas
Buenaventura SA, ADR .. Jul. 05/22.50 76,313
500 Compania de Minas
Buenaventura SA, ADR .. Sep. 05/22.50 78,750
75 Compania de Minas
Buenaventura SA, ADR .. Dec. 05/25 6,750
50 ConocoPhillips .......... Jul. 05/65 500
300 ConocoPhillips .......... Aug. 05/55 117,000
400 ConocoPhillips .......... Aug. 05/60 54,000
50 ConocoPhillips .......... Aug. 05/65 2,000
600 Devon Energy Corp. ...... Jul. 05/50 96,000
380 Devon Energy Corp. ...... Aug. 05/55 30,400
140 Devon Energy Corp. ...... Oct. 05/50 60,200
60 Dow Chemical Co. ........ Aug. 05/45 8,400
140 Dow Chemical Co. ........ Aug. 05/50 2,800
200 E.I. du Pont de Nemours
& Co. ................. Jul. 05/50 1,000
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS ISSUE EXERCISE PRICE VALUE
--------- ----- -------------- ------
OPTION CONTRACTS WRITTEN (CONTINUED)
CALL OPTIONS WRITTEN (CONTINUED)
290 E.I. du Pont de Nemours
& Co. ................. Oct. 05/50 $ 7,250
410 E.I. du Pont de Nemours
& Co. ................. Oct. 05/55 4,100
84 Exxon Mobil Corp. ....... Jul. 05/55 23,940
50 Exxon Mobil Corp. ....... Jul. 05/60 1,500
120 Exxon Mobil Corp. ....... Jul. 05/65 600
100 Exxon Mobil Corp. ....... Aug. 05/60 9,500
346 Exxon Mobil Corp. ....... Oct. 05/60 69,200
100 Exxon Mobil Corp. ....... Oct. 05/65 6,000
575 Freeport-McMoRan Copper
& Gold Inc., Cl. B .... Jul. 05/40 7,188
1,170 Freeport-McMoRan Copper
& Gold Inc., Cl. B .... Aug. 05/35 374,400
1,397 Freeport-McMoRan Copper
& Gold Inc., Cl. B .... Aug. 05/40 104,775
80 Freeport-McMoRan Copper
& Gold Inc., Cl. B .... Aug. 05/45 1,200
877 Freeport-McMoRan Copper
& Gold Inc., Cl. B .... Nov. 05/40 197,325
532 Glamis Gold Ltd. ........ Jul. 05/15 115,710
600 Glamis Gold Ltd. ........ Jul. 05/17.50 21,000
607 Glamis Gold Ltd. ........ Aug. 05/15 151,750
3,583 Glamis Gold Ltd. ........ Aug. 05/17.50 250,810
26 GlobalSantaFe Corp. ..... Jul. 05/35 15,210
837 GlobalSantaFe Corp. ..... Jul. 05/37.50 292,950
200 GlobalSantaFe Corp. ..... Jul. 05/40 26,000
20 GlobalSantaFe Corp. ..... Aug. 05/40 4,500
380 GlobalSantaFe Corp. ..... Aug. 05/45 17,100
560 GlobalSantaFe Corp. ..... Oct. 05/42.50 113,400
60 GlobalSantaFe Corp. ..... Oct. 05/45 6,000
3,780 Gold Fields Ltd., ADR ... Jul. 05/10 491,400
2,487 Gold Fields Ltd., ADR ... Jul. 05/12.50 12,435
6,434 Gold Fields Ltd., ADR ... Oct. 05/12.50 289,530
125 Goldcorp Inc. ........... Jul. 05/12.50 41,250
3,830 Goldcorp Inc. ........... Jul. 05/15 325,550
100 Goldcorp Inc. ........... Aug. 05/15 13,500
2,685 Goldcorp Inc. ........... Oct. 05/15 443,025
470 Goldcorp Inc. ........... Oct. 05/17.50 25,850
1,300 Golden Star
Resources Ltd. ........ Aug. 05/5 6,500
1,200 Golden Star
Resources Ltd. ........ Jan. 06/5 24,000
340 Halliburton Co. ......... Jul. 05/45 119,000
200 Halliburton Co. ......... Jul. 05/47.50 26,000
80 Halliburton Co. ......... Aug. 05/50 10,800
120 Halliburton Co. ......... Oct. 05/45 60,000
120 Halliburton Co. ......... Oct. 05/55 12,000
270 Harmony Gold Mining
Co. Ltd., ADR ......... Jul. 05/7.50 35,100
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS ISSUE EXERCISE PRICE VALUE
--------- ----- -------------- ------
1,830 Harmony Gold Mining
Co. Ltd., ADR ......... Aug. 05/7.50 $ 256,200
1,077 Harmony Gold Mining
Co. Ltd., ADR ......... Aug. 05/10 16,155
1,740 Harmony Gold Mining
Co. Ltd., ADR ......... Nov. 05/10 82,650
2,700 IAMGOLD Corp.(a) ........ Aug. 05/9 60,602
150 IAMGOLD Corp.(a) ........ Aug. 05/10 1,836
2,010 IAMGOLD Corp. ........... Sep. 05/7.50 65,325
450 IAMGOLD Corp.(a) ........ Nov. 05/10 11,019
40 IAMGOLD Corp. ........... Dec. 05/7.50 2,300
170 Inco Ltd. ............... Jul. 05/40 3,400
100 Inco Ltd. ............... Jul. 05/45 500
200 Inco Ltd. ............... Aug. 05/40 19,500
624 International Paper Co. . Jul. 05/35 3,120
156 International Paper Co. . Oct. 05/37.50 1,560
360 Ivanhoe Mines Ltd. ...... Jul. 05/7.50 15,300
360 Ivanhoe Mines Ltd. ...... Aug. 05/7.50 23,400
4,232 Ivanhoe Mines Ltd. ...... Sep. 05/7.50 380,880
1,488 Ivanhoe Mines Ltd. ...... Sep. 05/10 7,440
175 Ivanhoe Mines Ltd. ...... Dec. 05/10 4,375
64 Kerr-McGee Corp. ........ Jul. 05/75 12,800
290 Kerr-McGee Corp. ........ Oct. 05/85 35,525
2,000 Kinross Gold Corp. ...... Jul. 05/5.64 120,000
5,000 Kinross Gold Corp. ...... Jul. 05/5.98 195,000
3,200 Kinross Gold Corp. ...... Aug. 05/7.50 16,000
1,157 Kinross Gold Corp. ...... Nov. 05/7.50 23,140
1,300,000 Lihir Gold Ltd.(c) ...... Aug. 05/1.07 108,851
3,000,000 Lihir Gold Ltd.(c) ...... Aug. 05/1.13 228,359
156 Marathon Oil Corp. ...... Jul. 05/50 57,720
280 Marathon Oil Corp. ...... Jul. 05/55 19,600
140 Marathon Oil Corp. ...... Oct. 05/55 44,800
1,050 Meridian Gold Inc. ...... Jul. 05/17.50 89,250
400 Meridian Gold Inc. ...... Jul. 05/20 4,000
1,250 Meridian Gold Inc. ...... Aug. 05/20 50,000
1,375 Meridian Gold Inc. ...... Oct. 05/17.50 261,250
1,400 Meridian Gold Inc. ...... Oct. 05/20 133,000
280 Murphy Oil Corp. ........ Jul. 05/47.50 137,200
400 Murphy Oil Corp. ........ Jul. 05/50 109,000
520 Murphy Oil Corp. ........ Oct. 05/50 257,400
175 Nabors Industries Ltd. .. Aug. 05/60 52,500
175 Nabors Industries Ltd. .. Aug. 05/65 20,125
96 Nabors Industries Ltd. .. Sep. 05/60 37,440
85,000 Newcrest Mining Ltd.(c) . Oct. 05/17.10 49,820
375 Newmont Mining Corp. .... Aug. 05/37.50 30,000
2,275 Newmont Mining Corp. .... Aug. 05/42.50 136,500
1,100 Newmont Mining Corp. .... Sep. 05/40 170,500
260 Noble Corp. ............. Jul. 05/65 11,700
500 Noble Corp. ............. Aug. 05/70 21,250
324 Noble Corp. ............. Sep. 05/60 147,420
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS ISSUE EXERCISE PRICE VALUE
--------- ----- -------------- ------
OPTION CONTRACTS WRITTEN (CONTINUED)
CALL OPTIONS WRITTEN (CONTINUED)
250 Norsk Hydro ASA(d) ...... Aug. 05/560 $ 175,516
100 Norsk Hydro ASA(d) ...... Aug. 05/620 11,095
1,500,000 Oxiana Ltd.(c) .......... Oct. 05/1.008 22,836
200 Peabody Energy Corp. .... Jul. 05/50 56,500
105 Peabody Energy Corp. .... Aug. 05/50 44,625
105 Peabody Energy Corp. .... Aug. 05/55 22,050
70 Peabody Energy Corp. .... Aug. 05/60 4,025
70 Peabody Energy Corp. .... Aug. 05/65 875
70 Phelps Dodge Corp. ...... Jul. 05/90 27,300
220 Phelps Dodge Corp. ...... Oct. 05/95 134,200
500 Placer Dome Inc. ........ Jul. 05/15 30,000
210 Placer Dome Inc. ........ Sep. 05/12.50 64,575
1,625 Placer Dome Inc. ........ Sep. 05/15 195,000
4,125 Placer Dome Inc. ........ Sep. 05/17.50 144,375
140 Placer Dome Inc. ........ Dec. 05/15 24,500
375 Placer Dome Inc. ........ Dec. 05/17.50 30,000
120 Plum Creek Timber
Co. Inc. .............. Aug. 05/40 1,200
880 Plum Creek Timber
Co. Inc. .............. Nov. 05/40 30,800
767 Potlatch Corp. .......... Aug. 05/50 253,110
63 Potlatch Corp. .......... Nov. 05/55 12,285
750 Randgold Resources
Ltd., ADR ............. Jul. 05/15 11,250
400 Randgold Resources
Ltd., ADR ............. Aug. 05/15 19,000
350 Randgold Resources
Ltd., ADR ............. Aug. 05/17.50 5,250
1,800 Randgold Resources
Ltd., ADR ............. Sep. 05/12.50 373,500
1,250 Randgold Resources
Ltd., ADR ............. Sep. 05/15 90,625
100 Randgold Resources
Ltd., ADR ............. Sep. 05/17.50 2,000
400 Randgold Resources
Ltd., ADR ............. Dec. 05/17.50 24,000
165 Rio Tinto plc, ADR ...... Jul. 05/125 14,850
60 Rio Tinto plc, ADR ...... Jul. 05/130 1,800
75 Rio Tinto plc, ADR ...... Jul. 05/135 5,625
104 Rowan Companies Inc. .... Jul. 05/30 7,280
180 Rowan Companies Inc. .... Jul. 05/35 900
350 Rowan Companies Inc. .... Aug. 05/32.50 21,000
240 Rowan Companies Inc. .... Oct. 05/30 60,000
350 Rowan Companies Inc. .... Oct. 05/35 26,250
1,410 Smurfit-Stone
Container Corp. ....... Aug. 05/12.50 21,150
530 Smurfit-Stone
Container Corp. ....... Aug. 05/17.50 7,950
500 Suncor Energy Inc. ...... Aug. 05/50 82,500
80 Suncor Energy Inc. ...... Sep. 05/45 34,800
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS ISSUE EXERCISE PRICE VALUE
--------- ----- -------------- ------
300 Suncor Energy Inc. ...... Sep. 05/55 $ 21,000
340 Teck Cominco Ltd.,
Cl. B(a) .............. Aug. 05/46 18,038
250 Teck Cominco Ltd.,
Cl. B(a) .............. Aug. 05/50 4,081
600 Tesoro Corp. ............ Aug. 05/45 228,000
80 Transocean Inc. ......... Jul. 05/60 800
300 Transocean Inc. ......... Aug. 05/50 168,000
150 Transocean Inc. ......... Aug. 05/55 42,000
320 Transocean Inc. ......... Aug. 05/65 9,600
208 Unocal Corp. ............ Jul. 05/55 206,960
420 Unocal Corp. ............ Jul. 05/60 210,000
152 Unocal Corp. ............ Oct. 05/60 92,720
285 Valero Energy Corp. ..... Jul. 05/85 11,400
170 Valero Energy Corp. ..... Jul. 05/90 1,700
306 Valero Energy Corp. ..... Sep. 05/75 247,860
280 Valero Energy Corp. ..... Sep. 05/90 65,800
410 Weatherford
International Ltd. .... Aug. 05/55 205,000
100 Weatherford
International Ltd. .... Aug. 05/60 16,500
360 Weatherford
International Ltd. .... Aug. 05/65 18,000
85 Weatherford
International Ltd. .... Nov. 05/55 52,275
60 Weatherford
International Ltd. .... Nov. 05/60 21,000
40 Weyerhaeuser Co. ........ Jul. 05/65 2,800
90 Weyerhaeuser Co. ........ Jul. 05/70 1,350
140 Weyerhaeuser Co. ........ Jul. 05/80 7,000
90 Weyerhaeuser Co. ........ Aug. 05/70 2,700
180 Weyerhaeuser Co. ........ Oct. 05/70 19,800
1,170 Williams Companies Inc. . Aug. 05/20 52,650
90 Williams Companies Inc. . Nov. 05/22.50 3,600
1,160 XTO Energy Inc. ......... Aug. 05/35 150,800
100 XTO Energy Inc. ......... Aug. 05/40 2,250
300 XTO Energy Inc. ......... Nov. 05/40 30,000
------------
TOTAL CALL OPTIONS WRITTEN
(Premiums received $7,711,882) ....... $ 13,633,193
============
------------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
(a) Exercise price denoted in Canadian dollars.
(b) Exercise price denoted in British Pounds.
(c) Exercise price denoted in Australian dollars.
(d) Exercise price denoted in Norwegian Kroner.
(e) Securities, or a portion thereof, with a value of $85,199,682 pledged as
collateral for options written.
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2005 (UNAUDITED)
ASSETS:
Investments, at value (cost $345,282,127) ................. $ 362,309,881
Deposit at broker ......................................... 9,020,316
Receivable for investments sold ........................... 1,184,504
Dividends and interest receivable ......................... 111,950
-------------
TOTAL ASSETS .............................................. 372,626,651
-------------
LIABILITIES:
Call options written (premiums received $7,711,882) ....... 13,633,193
Put options written (premiums received $120,858) .......... 132,557
Foreign currency, at value (cost $742,107) ................ 746,165
Payable to custodian ...................................... 14,480
Payable for investments purchased ......................... 9,618,256
Payable for offering expenses ............................. 582,725
Dividends payable ......................................... 430,459
Payable for investment advisory fees ...................... 281,589
Other accrued expenses and liabilities .................... 136,353
-------------
TOTAL LIABILITIES ......................................... 25,575,777
-------------
NET ASSETS applicable to 17,640,164
shares outstanding ...................................... $ 347,050,874
=============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value ............... $ 17,640
Additional paid-in capital ................................ 335,937,970
Net unrealized appreciation on investments ................ 17,027,754
Net unrealized depreciation on options .................... (5,933,010)
Net unrealized appreciation on foreign
currency translations ................................... 520
-------------
NET ASSETS ................................................ $ 347,050,874
=============
NET ASSET VALUE:
($347,050,874 / 17,640,164 shares outstanding;
unlimited number of shares authorized of
$0.001 par value) ....................................... $19.67
======
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2005 (UNAUDITED)(A)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $52,530) ............... $ 640,599
Interest .................................................. 838,414
------------
TOTAL INVESTMENT INCOME ................................... 1,479,013
------------
EXPENSES:
Investment advisory fees .................................. 810,653
Shareholder communications expenses ....................... 62,873
Trustees fees ............................................. 28,532
Legal and audit fees ...................................... 24,818
Payroll ................................................... 18,614
Custodian fees ............................................ 8,080
Shareholder services fees ................................. 3,323
Miscellaneous expenses .................................... 56,726
------------
TOTAL EXPENSES ............................................ 1,013,619
------------
NET INVESTMENT INCOME ..................................... 465,394
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, OPTIONS AND FOREIGN CURRENCY:
Net realized loss on investments .......................... (891,163)
Net realized gain on options .............................. 2,601,292
Net realized loss on foreign
currency transactions ................................... (2,145)
Net change in net unrealized
appreciation/depreciation
on investments, options and foreign
currency translations ................................... 11,095,264
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
OPTIONS AND FOREIGN CURRENCY ............................ 12,803,248
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................................... $ 13,268,642
============
-------------------
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 29, 2005.
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED
JUNE 30, 2005(A)
(UNAUDITED)
---------------
OPERATIONS:
Net investment income ................................................................ $ 465,394
Net realized gain on investments, options and foreign currency transactions ....... 1,707,984
Net change in unrealized appreciation/depreciation on investments,
options and foreign currency translations ............................................ 11,095,264
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................. 13,268,642
-------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ................................................................ (465,394)*
Net realized short term gain on investments, options and foreign currency transactions (1,707,984)*
Return of capital .................................................................... (291,355)*
-------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS ........................................... (2,464,733)
-------------
TRUST SHARE TRANSACTIONS:
Net increase in net assets from common shares issued upon reinvestment of
dividends and distributions and common shares issued in offering ................... 336,850,957
Offering costs for common shares charged to paid-in-capital .......................... (704,000)
-------------
NET INCREASE IN NET ASSETS FROM TRUST SHARE TRANSACTIONS ............................. 336,146,957
-------------
NET INCREASE IN NET ASSETS ........................................................... 346,950,866
NET ASSETS:
Beginning of period .................................................................. 100,008
-------------
End of period ........................................................................ $ 347,050,874
=============
-------------------------
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 29, 2005.
* Amounts are subject to change and recharacterization at fiscal year end.
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION. The Gabelli Global Gold, Natural Resources & Income Trust (the
"Trust") is a closed-end non-diversified management investment company organized
under the laws of the state of Delaware on January 4, 2005 and registered under
the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust sold
5,236 shares to Gabelli Funds, LLC (the "Adviser") for $100,008 on March 10,
2005. Investment operations commenced on March 29, 2005 upon the settlement of
the sale of 16,600,000 shares of beneficial interest in the amount of
$316,396,000 (net of underwriting fees and expenses of $15,604,000). In
addition, on May 12, 2005, the Trust issued 1,000,000 shares of beneficial
interest in the amount of $19,060,000 (net of underwriting fees and expenses of
$940,000) in conjunction with the exercise of the underwriters' overallotment
option. The Adviser agreed to pay all the Trust's organizational costs and the
amount by which the Trust's offering costs (other than the underwriting fees)
exceed $0.04 per common share.
The Trust's primary investment objective is to provide a high level of
current income. The Trust's secondary investment objective is to seek capital
appreciation consistent with the Trust's strategy and its primary objective.
Under normal market conditions, the Trust will attempt to achieve its objectives
by investing 80% of its assets in equity securities of companies principally
engaged in the gold industry and natural resources industries. The Trust
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 Trust 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, oil, paper, food and agriculture, forestry products,
metals and minerals as well as related transportation companies and equipment
manufacturers ("Natural Resources Companies").
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the Trust 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 the Adviser.
Portfolio securities primarily traded on foreign markets are generally
valued at the preceding closing values of such securities on their respective
exchanges or if after the close of the foreign markets, but prior to the close
of business on the day the securities are being valued, market conditions change
significantly, certain foreign securities may be fair valued pursuant to
procedures established by the Board. Debt instruments that are not credit
impaired with remaining maturities of 60 days or less 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 valued at their fair value as
determined by the Board. Debt instruments having a maturity greater than 60 days
for which market quotations are readily available are valued at the latest
average of the bid and asked prices. If there were no asked prices quoted on
such day, the security is valued using the closing bid price. Futures contracts
are valued at the closing settlement price of the exchange or board of trade on
which the applicable contract is traded.
9
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Securities and assets for which market quotations are not readily available
are valued at their fair value as determined in good faith under procedures
established by and under the general supervision of 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 to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to 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.
REPURCHASE AGREEMENTS. The Trust 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 Trust takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Trust to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Trust's holding period.
The Trust will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Trust in each agreement. The Trust 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 Trust may be delayed or limited.
OPTIONS. The Trust may purchase or write call or put options on securities
or indices. As a writer of put options, the Trust 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 Trust 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 Trust
would realize a gain, to the extent of the premium, if the price of the
financial instrument increases between those dates.
As a purchaser of put options, the Trust 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 Trust would realize a gain upon sale or exercise. If the
price of the underlying security increases or stay the same, the Trust would
realize a loss upon sale or at 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 Trust
may write (a) in-the-money call options when the Adviser expects that the price
of the underlying security will remain stable or decline moderately during the
option period, (b) covered at-the-money call options when the Adviser expects
that the price of the underlying security will remain stable 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 Trust 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.
10
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Options activity for the Trust for the period ended June 30, 2005 was as
follows:
NUMBER OF
CONTRACTS PREMIUMS
---------- --------
Options outstanding at March 29, 2005 .... -- --
Options written .......................... 6,096,021 $12,662,688
Options closed ........................... (500) (51,658)
Options expired .......................... (47,356) (2,647,634)
Options exercised ........................ (27,835) (2,130,656)
--------- -----------
Options outstanding at June 30, 2005 ..... 6,020,330 $ 7,832,740
========= ===========
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Trust are
maintained in United States (U.S.) dollars. Foreign currencies, investments and
other assets and liabilities are translated into U.S. dollars at the exchange
rates prevailing at the end of the period, and 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, which
result from changes in foreign exchange rates and/or changes in 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 Trust
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.
FOREIGN SECURITIES. The Trust 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 ability 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.
CONCENTRATION RISKS. The Trust 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 Trust 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 Trust's net
asset value and magnified effect in its total return.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of 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 as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with Federal income tax regulations,
which may differ from that determined under U.S. generally accepted accounting
principles. These differences are primarily due to different treatments of
income and gains on various investment securities held by the Trust, timing
differences and differing characterizations of distributions made by the Trust.
11
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
PROVISION FOR INCOME TAXES. The Trust intends to qualify and elect to be
treated 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 Trust 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.
Dividends and interest from non-U.S. sources received by the Trust are
generally subject to non-U.S. withholding taxes at rates ranging up to 30%. Such
withholding taxes may be reduced or eliminated under the terms of applicable
U.S. income tax treaties, and the Trust intends to undertake any procedural
steps required to claim the benefits of such treaties.
The following summarizes the tax cost of investments and related
unrealized appreciation/depreciation at June 30, 2005:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
COST/PREMIUMS APPRECIATION DEPRECIATION (DEPRECIATION)
------------- ------------ ------------ --------------
Investments ............. $348,056,323 $20,720,974 $ (6,467,416) $14,253,558
Options Written ......... (7,832,740) 1,013,295 (6,946,305) (5,933,010)
----------- ------------ -----------
$21,734,269 $(13,413,721) $ 8,320,548
=========== ============ ===========
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Trust has entered into an
investment advisory agreement (the "Advisory Agreement") with the Adviser which
provides that the Trust will pay the Adviser on the first business day of each
month a fee for the previous month equal on an annual basis to 1.00% of the
value of the Trust's average weekly net assets. In accordance with the Advisory
Agreement, the Adviser provides a continuous investment program for the Trust's
portfolio and oversees the administration of all aspects of the Trust's business
and affairs.
The cost of calculating the Trust's net asset value per share is a Trust
expense pursuant to the Investment Advisory Agreement between the Trust and the
Adviser. During the period ended June 30, 2004, the Trust reimbursed the Adviser
$11,250 in connection with the cost of computing the Trust's net asset value,
which is included in miscellaneous expenses in the Statement of Operations.
The Trust is assuming its portion of the allocated cost of the Gabelli
Funds' Chief Compliance Officer in the amount of $1,654 for the period ended
June 30, 2005, which is included in miscellaneous expenses in the Statement of
Operations.
4. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the period ended June 30, 2005, other than short term securities, aggregated
$381,708,798 and $68,479,465, respectively.
5. CAPITAL. The Trust is authorized to issue an unlimited number of common
shares of beneficial interest, par value $0.001 per share. The Board has
authorized the repurchase of its shares in the open market when the shares are
trading at a discount of 7.50% or more (or such other percentage as the Board
may determine from time to time) from the net asset value of the shares. During
the period ended June 30, 2005, the Trust did not repurchase any shares of
beneficial interest in the open market.
12
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Transactions in shares of beneficial interest were as follows:
PERIOD ENDED
JUNE 30, 2005(A)
(UNAUDITED)
--------------------------
SHARES AMOUNT
-------- ------------
Initial seed capital, March 10, 2005 ........ 5,236 $ 100,008
Shares issued in offering ................... 17,600,000 335,456,000
Shares issued upon reinvestment of
dividends and distributions ............... 34,928 690,957
---------- ------------
Net increase ................................ 17,640,164 $336,246,965
========== ============
-----------------
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 29, 2005.
6. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests for documents and
testimony. The Trust does not believe that these matters will have a material
adverse effect on the Trust's financial position or the results of its
operations.
7. INDEMNIFICATIONS. The Trust enters into contracts that contain a variety of
indemnifications. The Trust's maximum exposure under these arrangements is
unknown. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
13
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT
EACH PERIOD:
PERIOD ENDED
JUNE 30, 2005(A)
(UNAUDITED)
---------------
OPERATING PERFORMANCE:
Net asset value, beginning of period ........................ $ 19.06(b)
--------
Net investment income ....................................... 0.01
Net realized and unrealized gain on investments ............. 0.74
--------
Total from investment operations ............................ 0.75
--------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ....................................... (0.02)*
Net realized gain on investments ............................ (0.10)*
Return of capital ........................................... (0.02)*
--------
Total distributions to common shareholders .................. (0.14)
--------
NET ASSET VALUE, END OF PERIOD .............................. $ 19.67
========
Net asset value total return + .............................. 4.0%
========
Market value, end of period ................................. $ 19.75
========
Total investment return ++ .................................. (0.6)%
========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets end of period (in 000's) ......................... $347,051
Ratio of net investment income to average net assets ........ 0.56%(c)
Ratio of operating expenses to average net assets ........... 1.23%(c)
Portfolio turnover rate ..................................... 25.7%
-----------------------
+ Based on net asset value per share at commencement of operations of $19.06
per share, adjusted for reinvestment of dividends at net asset value on the
ex-dividend date. Total return for the period of less than one year is not
annualized.
++ Based on market value per share at initial public offering of $20.00 per
share, adjusted for reinvestment of dividends on the payment date. Total
return for the period of less than one year is not annualized.
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 29, 2005.
(b) The beginning of period NAV reflects a $0.04 reduction for costs associated
with the initial public offering.
(c) Annualized.
* Amounts are subject to change and recharacterization at fiscal year end.
See accompanying notes to financial statements.
14
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
BOARD CONSIDERATION AND APPROVAL OF MANAGEMENT AGREEMENT
NATURE, EXTENT AND QUALITY OF SERVICES. The independent trustees considered
information regarding the portfolio management team, the depth of the analyst
pool available to the Adviser and the portfolio management team, the scope of
administrative, shareholder and other services supervised or provided by the
Adviser and the absence of significant service problems reported to the boards
of the other Gabelli funds with respect to those funds. The independent trustees
noted the experience, length of service and reputation of the portfolio
management team and the historical ability of the Adviser to successfully manage
closed-end funds.
INVESTMENT PERFORMANCE. The independent trustees did not review any performance
of the Trust since it is a start-up fund without prior investment operations.
PROFITABILITY. The independent trustees reviewed summary data regarding the
anticipated profitability of the Trust to the Adviser if the public offering
raised approximately $200 million.
ECONOMIES OF SCALE. The independent trustees determined that economies of scale
were unlikely to be an issue for a closed-end fund such as the Trust unless the
public offering was far more successful than anticipated.
SHARING OF ECONOMIES OF SCALE. The independent trustees noted that the proposed
investment management fee schedule for the Trust does not take into account any
potential economies of scale that may develop.
SERVICE AND COST COMPARISONS. The independent trustees compared the anticipated
expense ratios of the investment management fee, other expenses and total
expenses of the Trust to similar expense ratios of a peer group of funds and
noted that the Adviser's management fee includes substantially all
administrative services of the Trust as well as investment advisory services.
The trustees noted that the Trust's anticipated expense ratios were roughly
average within this group. The trustees also noted that the management fee
structure was similar to that in effect for most of the Gabelli funds although
the investment strategies would require additional portfolio monitoring and
adjustment. The trustees did not compare the management fee to the fee for other
types of accounts managed by the Adviser.
CONCLUSIONS. The independent trustees concluded that the Trust would enjoy
highly experienced portfolio management services and good ancillary services.
The independent trustees also concluded that the Trust's anticipated expense
ratios and profitability to the Adviser of managing the Trust were reasonable
and that economies of scale were not a factor in their thinking. The trustees
noted that they would be able to revisit their conclusions during the periodic
renewal process after the Trust had invested the proceeds of its offering and
had actual expense and performance history. On the basis of the foregoing and
without assigning particular weight to any single conclusion, the independent
trustees determined to recommend approval of the investment management agreement
to the full Board of Trustees.
15
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Gold, Natural Resources & Income
Trust (the "Trust") to automatically reinvest dividends. As a "registered"
shareholder you automatically become a participant in the Trust's Automatic
Dividend Reinvestment Plan (the "Plan"). The Plan authorizes the Trust to issue
shares to participants upon an income dividend or a capital gains distribution
regardless of whether the shares are trading at a discount or a premium to net
asset value. All distributions to shareholders whose shares are registered in
their own names will be automatically reinvested pursuant to the Plan in
additional shares of the Trust. Plan participants may send their share
certificates to American Stock Transfer ("AST") to be held in their dividend
reinvestment account. Registered shareholders wishing to receive their
distribution in cash must submit this request in writing to:
The Gabelli Global Gold, Natural Resources & Income Trust
c/o American Stock Transfer
6201 15th Avenue
Brooklyn, NY 11219
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact AST at (888) 422-3262.
SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at AST must do so
in writing or by telephone. Please submit your request to the above mentioned
address or telephone number. Include in your request your name, address and
account number. The cost to liquidate shares is $1.00 per transaction as well as
the brokerage commission incurred. Brokerage charges are expected to be less
than the usual brokerage charge for such transactions.
If your shares are held in the name of a broker, bank or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your dividends will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at such participating institutions will have dividends
automatically reinvested. Shareholders wishing a cash dividend at such
institution must contact their broker to make this change.
The number of Common Shares distributed to participants in the Plan in
lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Trust's Common Shares is equal to or exceeds
net asset value at the time shares are valued for purposes of determining the
number of shares equivalent to the cash dividends or capital gains distribution,
participants are issued Common Shares valued at the greater of (i) the net asset
value as most recently determined or (ii) 95% of the then current market price
of the Trust's Common Shares. The valuation date is the dividend or distribution
payment date or, if that date is not an American Stock Exchange trading day, the
next trading day. If the net asset value of the Common Shares at the time of
valuation exceeds the market price of the Common Shares, participants will
receive shares from the Trust valued at market price. If the Trust should
declare a dividend or capital gains distribution payable only in cash, AST will
buy Common Shares in the open market, or on the American Stock Exchange or
elsewhere, for the participants' accounts, except that AST will endeavor to
terminate purchases in the open market and cause the Trust to issue shares at
net asset value if, following the commencement of such purchases, the market
value of the Common Shares exceeds the then current net asset value.
16
The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
The Trust reserves the right to amend or terminate the Plan as applied to
any voluntary cash payments made and any dividend or distribution paid
subsequent to written notice of the change sent to the members of the Plan at
least 90 days before the record date for such dividend or distribution. The Plan
also may be amended or terminated by AST on at least 90 days' written notice to
participants in the Plan.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our
shareholders to increase their investment in the Trust. In order to participate
in the Voluntary Cash Purchase Plan, shareholders must have their shares
registered in their own name and participate in the Dividend Reinvestment Plan.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to AST for investments in the Trust's shares at the
then current market price. Shareholders may send an amount from $250 to $10,000.
AST will use these funds to purchase shares in the open market on or about the
1st and 15th of each month. AST will charge each shareholder who purchases
shares a pro rata share of the brokerage commissions. The cost to liquidate
shares is $1.00 per transaction as well as the brokerage commission incurred.
Brokerage charges for such purchases are expected to be less than the usual
brokerage charge for such transactions. It is suggested that any voluntary cash
payments be sent to American Stock Transfer, 6201 15th Avenue, Brooklyn, NY11219
such that AST receives such payments approximately 10 days before the investment
date. Funds not received at least five days before the investment date shall be
held for investment until the next purchase date. A payment may be withdrawn
without charge if notice is received by AST at least 48 hours before such
payment is to be invested.
For more information regarding the Dividend Reinvestment Plan and
Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070
or by writing directly to the Trust.
17
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Mario d'Urso
CHAIRMAN, MITTEL CAPITAL MARKETS SPA
Vincent D. Enright
FORMER SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER,
KEYSPAN ENERGY CORP.
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Michael J. Melarkey
ATTORNEY-AT-LAW,
AVANSINO, MELARKEY, KNOBEL & MULLIGAN
Karl Otto Pohl
CHAIRMAN/TRUSTEE,
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Anthonie C. van Ekris
CHAIRMAN,
BALMAC INTERNATIONAL, INC.
Salvatore J. Zizza
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS
Bruce N. Alpert
PRESIDENT
Carter W. Austin
VICE PRESIDENT
Joseph H. Egan
TREASURER
Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
James E. McKee
SECRETARY
OMBUDSMAN
Molly A.F. Marion
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
Mellon Trust of New England, N.A.
COUNSEL
Skadden, Arps, Slate, Meagher & Flom, LLP
TRANSFER AGENT AND REGISTRAR
American Stock Transfer and Trust Company
STOCK EXCHANGE LISTING
Common
--------
Amex-Symbol: GGN
Shares Outstanding: 17,640,164
The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "Specialized Equity Funds," in Sunday's The New York Times and 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 may be obtained each day by calling (914) 921-5071.
--------------------------------------------------------------------------------
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 Gabelli Global Gold, Natural
Resources & Income Trust may, from time to time, purchase its shares in the
open market when the Gabelli Global Gold, Natural Resources & Income Trust
shares are trading at a discount of 7.5% or more from the net asset value of
the shares.
--------------------------------------------------------------------------------
THE GABELLI GLOBAL GOLD, NATURAL
RESOURCES & INCOME TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
SEMI-ANNUAL REPORT
JUNE 30, 2005
GGN-SA-Q2/05
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. SCHEDULE OF INVESTMENTS
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.
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.
Not yet applicable.
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 Common - N/A Common - N/A Common - N/A Common - N/A
01/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
01/31/05
========================================================================================================================
Month #2 Common - N/A Common - N/A Common - N/A Common - N/A
02/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
02/28/05
========================================================================================================================
Month #3 Common - N/A Common - N/A Common - N/A Common - 16,605,236
03/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
03/31/05
========================================================================================================================
Month #4 Common - N/A Common - N/A Common - N/A Common - 16,605,236
04/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
04/30/05
========================================================================================================================
Month #5 Common - N/A Common - N/A Common - N/A Common - 17,605,236
05/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
05/31/05
========================================================================================================================
Month #6 Common - N/A Common - N/A Common - N/A Common - 17,640,164
06/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
06/30/05
========================================================================================================================
Total Common - N/A Common - N/A Common - N/A N/A
Preferred - N/A Preferred - N/A Preferred - 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 10% 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.
The Board of Trustees has a Nominating Committee comprised of three
"non-interested" (as such term is defined by the Investment Company Act of 1940,
as amended) Trustees, namely Anthony J. Colavita, Michael J. Melarkey and
Salvatore J. Zizza. The Nominating Committee is responsible for identifying and
recommending to the Board of Trustees individuals believed to be qualified to
become Board members in the event that a position is vacated or created. The
Nominating Committee will consider Trustee candidates recommended by
shareholders. In considering Trustees candidates submitted by shareholders, the
Nominating Committee will take into consideration the needs of the Board of
Trustees, the qualifications of the candidate and the interests of shareholders.
The Nominating Committee may also take into consideration the number of shares
held by the recommending shareholder and the length of time that such shares
have been held. To have a candidate considered by the Nominating Committee, a
shareholder must submit the recommendation in writing and must include the
following information:
o The name of the shareholder and evidence of the person's ownership of
shares of the Fund, including the number of shares owned and the length of
time of ownership;
o The name of the candidate, the candidate's resume or a listing of his or
her qualifications to be a Trustee of the Fund and the person's consent to
be named as a Trustee if selected by the Nominating Committee and nominated
by the Board of Trustees; and
o If requested by the Nominating Committee, a completed and signed Trustees
questionnaire.
The shareholder recommendation and information described above must be sent to
the Fund's Secretary c/o Gabelli Funds, LLC, James E. McKee and must be received
by the Secretary no less than 120 days prior to the anniversary date of the
Fund's most recent annual meeting of shareholders or, if the meeting has moved
by more than 30 days, a reasonable amount of time before the meeting.
The Nominating Committee believes that the minimum qualifications for serving as
a Trustee of the Fund are that the individual demonstrate, by significant
accomplishment in his or her field, an ability to make a meaningful contribution
to the Board of Trustees' oversight on the business and affairs of the Fund and
have an impeccable record and reputation for honest and ethical conduct in both
his or her professional and personal activities. In addition, the Nominating
Committee examines a candidate's specific experiences and skills, time
availability in light of other commitments, potential conflicts of interest and
independence from management and the Fund. The Nominating Committee also seeks
to have the Board of Trustees represent a diversity of backgrounds and
experience.
The Board of Trustees has adopted a Nominating Committee Charter, which was
approved on May 18, 2005.
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
-------------------------------------------------------
Bruce N. Alpert, President &
Principal Executive Officer
Date September 7, 2005
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, President &
Principal Executive Officer
Date September 7, 2005
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Joseph H. Egan
-------------------------------------------------------
Joseph H. Egan, Treasurer &
Principal Financial Officer
Date September 7, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.