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
--------------------------------------------------
(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
--------------------------------------------------
(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: December 31, 2005
-----------------
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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[LOGO]
THE GABELLI
GLOBAL GOLD,
NATURAL RESOURCES
& INCOME TRUST
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
Annual Report
December 31, 2005
TO OUR SHAREHOLDERS,
The Sarbanes-Oxley Act requires a fund's principal executive and financial
officers to certify the entire contents of the semi-annual and annual
shareholder reports in a filing with the Securities and Exchange Commission on
Form N-CSR. This certification would cover the portfolio manager's commentary
and subjective opinions if they are attached to or a part of the financial
statements. Many of these comments and opinions would be difficult or impossible
to certify.
Because we do not want our portfolio managers to eliminate their opinions
and/or restrict their commentary to historical facts, we have separated their
commentary from the financial statements and investment portfolio and have sent
it to you separately. Both the commentary and the financial statements,
including the portfolio of investments, will be available on our website at
www.gabelli.com/funds.
Enclosed are the audited financial statements and the investment portfolio
as of December 31, 2005.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH DECEMBER 31, 2005 (A)
----------------------------------------------------
SINCE
INCEPTION
QUARTER (3/29/05)
------- ---------
GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST (b) ....... 5.58% 21.97%
GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST (c) ....... 2.43 15.18
CBOE S&P 500 BuyWrite Index (BXM) ............................... (2.07) 4.29
Philadelphia Gold and Silver Index .............................. 13.68 39.51
AMEX Energy Select Sector Index ................................. (5.99) 20.70
Lehman Brothers Gov't/Corporate Bond Index ...................... 0.60 3.06
(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 FIGURES ARE NOT
ANNUALIZED. INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS,
CHARGES, AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. THE CBOE S&P
500 BUYWRITE INDEX IS A 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 AN S&P 500 (SPX) CALL OPTION. THE
PHILADELPHIA GOLD & SILVER INDEX IS AN UNMANAGED INDICATOR OF STOCK MARKET
PERFORMANCE OF LARGE NORTH AMERICAN GOLD AND SILVER COMPANIES, WHILE THE
AMEX ENERGY SELECT SECTOR INDEX IS AN UNMANAGED INDICATOR OF STOCK MARKET
PERFORMANCE OF LARGE U.S. COMPANIES INVOLVED IN THE DEVELOPMENT OR
PRODUCTION OF ENERGY PRODUCTS. THE LEHMAN GOVERNMENT/CORPORATE BOND INDEX
IS A MARKET VALUE WEIGHTED INDEX THAT TRACKS THE TOTAL RETURN PERFORMANCE
OF FIXED RATE, PUBLICLY PLACED, DOLLAR DENOMINATED OBLIGATIONS. DIVIDENDS
ARE CONSIDERED REINVESTED.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NET ASSET
VALUE ("NAV"), REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX- DIVIDEND
DATE AND ARE NET OF EXPENSES. SINCE INCEPTION RETURN BASED ON AN INITIAL
NAV OF $19.06.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE AMERICAN STOCK EXCHANGE AND REINVESTMENT OF DISTRIBUTIONS.
SINCE INCEPTION RETURN BASED ON AN INITIAL OFFERING PRICE OF $20.00.
--------------------------------------------------------------------------------
Sincerely yours,
/s/ Bruce N. Alpert
Bruce N. Alpert
February 13, 2006 President
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
as of December 31, 2005:
LONG POSITIONS
Metals and Mining .................................................... 55.6%
Energy and Energy Services ........................................... 35.1%
U.S. Government Obligations .......................................... 7.0%
Paper and Forest Products ............................................ 1.9%
Specialty Chemicals .................................................. 1.3%
Other Assets and Liabilities (Net) ................................... 6.2%
SHORT POSITIONS
Put Options Written .................................................. (0.0)%
Call Options Written ................................................. (7.1)%
-----
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 FISCAL YEAR ON FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE
QUARTER ENDED SEPTEMBER 30, 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, procedures, and how the Trust voted proxies
relating to portfolio securities 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
DECEMBER 31, 2005
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 93.9%
ENERGY AND ENERGY SERVICES -- 35.1%
50,000 Alpha Natural
Resources Inc.+ .................................. $ 1,252,617 $ 960,500
135,600 BG Group plc, ADR ................................. 5,374,556 6,735,252
148,000 BJ Services Co. .................................... 4,238,859 5,427,160
71,000 BP plc, ADR ....................................... 4,763,155 4,559,620
71,000 Burlington Resources Inc. .......................... 4,466,184 6,120,200
99,600 Chevron Corp. ...................................... 5,796,878 5,654,292
72,000 ConocoPhillips (e) ................................. 4,344,303 4,188,960
47,000 Devon Energy Corp. (e) ............................. 2,152,306 2,939,380
30,000 Diamond Offshore
Drilling Inc. .................................... 1,593,939 2,086,800
101,500 Exxon Mobil Corp. (e) .............................. 5,911,745 5,701,255
217,000 GlobalSantaFe Corp. ................................ 8,551,082 10,448,550
122,000 Halliburton Co. (e) ................................ 6,399,551 7,559,120
20,000 Kerr-McGee Corp. ................................... 1,857,390 1,817,200
59,000 Marathon Oil Corp. ................................. 3,230,999 3,597,230
140,000 Murphy Oil Corp. (e) ............................... 6,660,886 7,558,600
130,000 Noble Corp. (e) .................................... 8,219,034 9,170,200
25,000 Norsk Hydro ASA .................................... 1,995,246 2,566,933
91,100 Rowan Companies Inc. ............................... 2,571,058 3,246,804
83,000 Suncor Energy Inc. ................................. 4,282,812 5,239,790
60,000 Tesoro Corp. ....................................... 3,427,597 3,693,000
60,000 Total SA, ADR ...................................... 7,759,934 7,584,000
85,000 Transocean Inc.+ ................................... 4,400,126 5,923,650
191,400 Valero Energy Corp. (e) ............................ 6,852,868 9,876,240
205,000 Weatherford
International Ltd.+ .............................. 5,586,605 7,421,000
150,000 Williams Companies Inc. ............................ 3,209,752 3,475,500
74,500 XTO Energy Inc. (e) ................................ 2,412,829 3,273,530
------------ ------------
117,312,311 136,824,766
------------ ------------
METALS AND MINING -- 55.6%
409,200 Agnico-Eagle Mines Ltd. ............................ 6,065,206 8,085,792
150,000 Anglo American plc ................................. 5,050,174 5,107,272
220,000 AngloGold Ashanti
Ltd., ADR ........................................ 8,850,575 10,852,600
45,000 Arch Coal Inc. ..................................... 3,230,708 3,577,500
397,300 Barrick Gold Corp. (e) ............................. 9,435,808 11,072,751
160,000 BHP Billiton Ltd., ADR ............................. 4,569,991 5,347,200
134,400 Compania de Minas
Buenaventura SA, ADR ............................. 3,328,990 3,803,520
35,000 Falconbridge Ltd. .................................. 872,525 1,037,050
190,300 Freeport-McMoRan Copper
& Gold Inc., Cl. B (e) ........................... 6,730,979 10,238,140
317,600 Glamis Gold Ltd.+ .................................. 5,821,505 8,727,648
834,900 Gold Fields Ltd., ADR .............................. 10,351,991 14,719,287
400,000 Goldcorp Inc. (e) .................................. 7,743,110 8,912,000
185,800 Golden Star Resources Ltd.+ ........................ 550,486 490,512
460,700 Harmony Gold Mining Co.
Ltd., ADR+ ....................................... 3,277,900 6,012,135
480,000 IAMGOLD Corp., Toronto ............................. 3,214,254 3,782,356
64,000 Inco Ltd. .......................................... 2,539,539 2,788,480
776,700 Ivanhoe Mines Ltd.,
New York+ ........................................ 5,820,396 5,584,473
98,000 Ivanhoe Mines Ltd., Toronto+ ....................... 677,587 703,944
100,000 Kingsgate Consolidated Ltd. ........................ 283,998 337,226
1,227,100 Kinross Gold Corp.+ (e) ............................ 7,022,836 11,313,862
5,400,000 Lihir Gold Ltd.+ ................................... 6,178,556 8,630,053
65,000 Lundin Mining Corp.+ ............................... 829,959 942,191
292,900 Meridian Gold Inc.+ ................................ 5,480,424 6,405,723
550,000 Newcrest Mining Ltd. ............................... 7,179,163 9,797,882
349,400 Newmont Mining Corp. (e) ........................... 13,485,019 18,657,960
2,785,000 Oxiana Ltd.+ ....................................... 2,297,283 3,552,529
50,000 Peabody Energy Corp. ............................... 3,380,898 4,121,000
MARKET
SHARES COST VALUE
------ ---- ------
31,000 Phelps Dodge Corp. ................................. $ 3,502,070 $ 4,459,970
931,000 Placer Dome Inc. (e) ............................... 13,968,779 21,347,830
375,000 Randgold Resources
Ltd., ADR+ ....................................... 5,418,655 6,048,750
27,100 Rio Tinto plc, ADR ................................. 4,708,081 4,953,609
55,000 Teck Cominco Ltd., Cl. B ........................... 2,142,790 2,935,825
112,400 Xstrata plc ........................................ 2,637,162 2,630,009
------------ ------------
166,647,397 216,977,079
------------ ------------
PAPER AND FOREST PRODUCTS -- 1.9%
100,000 Plum Creek
Timber Co. Inc. .................................. 3,521,762 3,605,000
59,000 Weyerhaeuser Co. ................................... 4,082,192 3,914,060
------------ ------------
7,603,954 7,519,060
------------ ------------
SPECIALTY CHEMICALS -- 1.3%
26,000 Dow Chemical Co. ................................... 1,186,112 1,139,320
90,000 E.I. du Pont de
Nemours and Co. .................................. 4,311,700 3,825,000
------------ ------------
5,497,812 4,964,320
------------ ------------
TOTAL
COMMON STOCKS ..................................... 297,061,474 366,285,225
------------ ------------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 7.0%
$27,305,000 U.S. Treasury Bill,
3.790%++, 01/19/06 ............................... 27,259,734 27,259,734
------------ ------------
TOTAL INVESTMENTS -- 100.9% ..................................... $324,321,208 393,544,959
============
CALL OPTIONS WRITTEN -- (7.1)% .................................. (27,469,822)
(Premiums received $14,592,858)
PUT OPTIONS WRITTEN -- (0.0)% ................................... (14,350)
(Premiums received $133,041)
OTHER ASSETS & LIABILITIES (NET) -- 6.2% ........................ 24,148,197
------------
NET ASSETS -- COMMON STOCK
(17,745,981 common shares outstanding) -- 100.0% .............. $390,208,984
============
NET ASSET VALUE PER COMMON SHARE
($390,208,984 / 17,745,981 shares outstanding) ................ $21.99
======
OPTION CONTRACTS WRITTEN -- (7.1)%
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- ---------------- ------
PUT OPTIONS WRITTEN -- 0.0%
225 AngloGold Ashanti
Ltd., ADR ........................................ Jan. 06/35 $ 2,250
250 AngloGold Ashanti
Ltd., ADR ........................................ Jan. 06/40 1,250
100 Murphy Oil Corp. ................................... Jan. 06/45 1,000
225 Nabors Industries Ltd. ............................. Jan. 06/65 2,250
100 Phelps Dodge Corp. ................................. Jan. 06/100 1,300
180 XTO Energy Inc. .................................... Feb. 06/35 6,300
------------
TOTAL PUT OPTIONS WRITTEN
(Premiums received $133,041) $ 14,350
============
CALL OPTIONS WRITTEN -- (7.1)%
750 Agnico-Eagle Mines Ltd. ............................. Feb. 06/15 $ 360,000
786 Agnico-Eagle Mines Ltd. ............................. Feb. 06/17.50 208,290
500 Agnico-Eagle Mines Ltd. ............................. Feb. 06/20 50,000
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2005
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- ---------------- ------
OPTION CONTRACTS WRITTEN (CONTINUED)
CALL OPTIONS WRITTEN (CONTINUED)
158 Agnico-Eagle Mines Ltd. ............................ May 06/15 $ 82,160
650 Agnico-Eagle Mines Ltd. ............................ May 06/17.50 208,000
1,248 Agnico-Eagle Mines Ltd. ............................ May 06/20 218,400
500 Alpha Natural Resources Inc. ....................... Mar. 06/22.50 20,000
50 Anglo American plc(b) .............................. Mar. 06/1800 19,140
100 Anglo American plc(b) .............................. Jun. 06/2000 22,969
1,500 AngloGold Ashanti
Ltd., ADR ........................................ Jan. 06/45 690,000
450 AngloGold Ashanti
Ltd., ADR ........................................ Apr. 06/45 276,750
250 AngloGold Ashanti
Ltd., ADR ........................................ Apr. 06/50 83,750
150 Arch Coal Inc. ..................................... Feb. 06/80 61,500
650 Barrick Gold Corp. ................................. Jan. 06/25 214,500
1,000 Barrick Gold Corp. ................................. Jan. 06/27.84 76,000
800 Barrick Gold Corp. ................................. Jan. 06/28 54,400
1,123 Barrick Gold Corp. ................................. Jan. 06/30 11,230
400 Barrick Gold Corp. ................................. Apr. 06/30 54,000
300 BHP Billiton Ltd., ADR ............................. Jan. 06/36.48 840
572 BHP Billiton Ltd., ADR ............................. Feb. 06/30 220,220
728 BHP Billiton Ltd., ADR ............................. Feb. 06/35 54,600
1,230 BJ Services Co. .................................... Jan. 06/35 270,600
100 BJ Services Co. .................................... Jan. 06/37.50 6,000
150 BJ Services Co. .................................... Apr. 06/37.50 35,250
175 BP plc, ADR ........................................ Jan. 06/80 875
535 BP plc, ADR ........................................ Apr. 06/70 46,812
250 Burlington Resources Inc. .......................... Jan. 06/70 410,000
385 Burlington Resources Inc. .......................... May 06/85 186,725
75 Burlington Resources Inc. .......................... May 06/90 16,312
393 Chevron Corp. ...................................... Jan. 06/65 1,965
200 Chevron Corp. ...................................... Feb. 06/60 14,000
403 Chevron Corp. ...................................... Jun. 06/65 38,285
800 Compania de Minas
Buenaventura SA, ADR ............................. Mar. 06/30 132,000
620 ConocoPhillips ..................................... Feb. 06/60 99,200
100 ConocoPhillips ..................................... May 06/65 17,500
340 Devon Energy Corp. ................................. Jan. 06/65 32,300
80 Devon Energy Corp. ................................. Feb. 06/65 18,200
50 Devon Energy Corp. ................................. Apr. 06/70 11,250
300 Diamond Offshore
Drilling Inc. .................................... Jan. 06/60 291,000
100 Dow Chemical Co. ................................... Jan. 06/45 4,000
60 Dow Chemical Co. ................................... Mar. 06/45 8,100
100 Dow Chemical Co. ................................... Mar. 06/50 3,000
700 E.I. du Pont de
Nemours & Co. .................................... Apr. 06/45 66,500
260 Exxon Mobil Corp. .................................. Jan. 06/60 2,600
100 Exxon Mobil Corp. .................................. Feb. 06/60 4,500
446 Exxon Mobil Corp. .................................. Apr. 06/62.50 33,450
209 Exxon Mobil Corp. .................................. Apr. 06/65 8,360
92 Freeport-McMoRan Copper
& Gold Inc., Cl. B ............................... Jan. 06/45 81,880
1,811 Freeport-McMoRan Copper
& Gold Inc., Cl. B ............................... Feb. 06/50 954,397
3,176 Glamis Gold Ltd. ................................... Feb. 06/22.50 1,715,040
420 GlobalSantaFe Corp. ................................ Jan. 06/47.50 66,150
250 GlobalSantaFe Corp. ................................ Jan. 06/50 11,250
1,250 GlobalSantaFe Corp. ................................ Jan. 06/53.976 12,000
250 GlobalSantaFe Corp. ................................ Apr. 06/45 137,500
500 Gold Fields Ltd., ADR .............................. Jan. 06/12.50 261,500
7,099 Gold Fields Ltd., ADR .............................. Jan. 06/15 1,952,225
250 Gold Fields Ltd., ADR .............................. Apr. 06/15 80,000
500 Gold Fields Ltd., ADR .............................. Apr. 06/17.50 82,500
1,450 Goldcorp Inc. ...................................... Jan. 06/20 369,750
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- ---------------- ------
1,343 Goldcorp Inc. ..................................... Jan. 06/22.50 $ 100,725
1,007 Goldcorp Inc. ..................................... Feb. 06/20 281,960
200 Goldcorp Inc. ..................................... Apr. 06/22.50 39,000
658 Golden Star Resources Ltd. ........................ Jan. 06/4 658
1,200 Golden Star Resources Ltd. ........................ Jan. 06/5 6,000
400 Halliburton Co. ................................... Jan. 06/65 24,000
315 Halliburton Co. ................................... Jan. 06/70 3,150
505 Halliburton Co. ................................... Apr. 06/70 104,787
2,607 Harmony Gold Mining
Co. Ltd., ADR ................................... Jan. 06/10 808,170
500 Harmony Gold Mining
Co. Ltd., ADR ................................... Jan. 06/12.50 50,000
1,000 Harmony Gold Mining
Co. Ltd., ADR ................................... Feb. 06/12.50 130,000
500 Harmony Gold Mining
Co. Ltd., ADR ................................... Feb. 06/15 17,500
4,375 IAMGOLD Corp.(a) .................................. Feb. 06/9 206,998
425 IAMGOLD Corp.(a) .................................. May 06/9 30,163
291 Inco Ltd. ......................................... Jan. 06/50 3,637
349 Inco Ltd. ......................................... Feb. 06/45 51,477
71 Ivanhoe Mines Ltd. ................................ Jan. 06/7.50 1,065
4,890 Ivanhoe Mines Ltd. ................................ Jan. 06/8 48,411
736 Ivanhoe Mines Ltd. ................................ Jan. 06/8.25 4,563
303 Ivanhoe Mines Ltd. ................................ Jan. 06/8.75 667
750 Ivanhoe Mines Ltd. ................................ Mar. 06/7.5 41,250
12 Ivanhoe Mines Ltd. ................................ Mar. 06/10 150
2,000 Ivanhoe Mines Ltd. ................................ May 06/8 114,600
200 Kerr-McGee Corp. .................................. Apr. 06/95 88,000
3,000 Kinross Gold Corp. ................................ Feb. 06/7.50 540,000
5,000 Kinross Gold Corp. ................................ Feb. 06/8 715,500
3,500 Lihir Gold Ltd.(c) ................................ Jan. 06/1.5235 1,770,437
70 Marathon Oil Corp. ................................ Jan. 06/65 2,450
35 Marathon Oil Corp. ................................ Jan. 06/70 175
285 Marathon Oil Corp. ................................ Apr. 06/65 73,388
200 Marathon Oil Corp. ................................ Apr. 06/70 24,000
1,000 Meridian Gold Inc. ................................ Jan. 06/20 200,000
625 Meridian Gold Inc. ................................ Jan. 06/22.50 25,000
180 Meridian Gold Inc. ................................ Apr. 06/20 56,250
1,100 Meridian Gold Inc. ................................ Apr. 06/22.50 195,250
300 Murphy Oil Corp. .................................. Jan. 06/47.50 199,500
810 Murphy Oil Corp. .................................. Jan. 06/50 332,100
150 Murphy Oil Corp. .................................. Jan. 06/52.50 37,500
140 Murphy Oil Corp. .................................. Apr. 06/55 48,300
350 Newcrest Mining Ltd.(c) ........................... Mar. 06/22 821,072
1,500 Newmont Mining Corp. .............................. Jan. 06/47.50 975,000
1,994 Newmont Mining Corp. .............................. Mar. 06/50 1,096,700
1,300 Noble Corp. ....................................... Mar. 06/75 403,000
100 Norsk Hydro ASA(d) ................................ Feb. 06/680 56,117
150 Norsk Hydro ASA(d) ................................ Feb. 06/710 47,227
2,785 Oxiana Ltd.(c) .................................... Feb. 06/1.45 632,922
150 Peabody Energy Corp. .............................. Feb. 06/80 85,500
150 Peabody Energy Corp. .............................. Mar. 06/80 111,000
150 Peabody Energy Corp. .............................. Mar. 06/90 54,000
50 Peabody Energy Corp. .............................. Mar. 06/100 5,750
250 Phelps Dodge Corp. ................................ Jan. 06/130 372,500
60 Phelps Dodge Corp. ................................ Jan. 06/135 64,200
2,275 Placer Dome Inc. .................................. Jan. 06/17.50 1,251,250
2,755 Placer Dome Inc. .................................. Jan. 06/20 909,150
290 Placer Dome Inc. .................................. Mar. 06/20 88,450
2,250 Placer Dome Inc. .................................. Mar. 06/22.50 258,750
1,740 Placer Dome Inc. .................................. Mar. 06/25 43,500
1,000 Plum Creek Timber Co. Inc. ........................ Feb. 06/40 10,000
185 Randgold Resources
Ltd., ADR ....................................... Mar. 06/15 35,613
3,565 Randgold Resources
Ltd., ADR ....................................... Mar. 06/17.50 267,375
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2005
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- ---------------- ------
OPTION CONTRACTS WRITTEN (CONTINUED)
CALL OPTIONS WRITTEN (CONTINUED)
100 Rio Tinto plc, ADR ................................ Jan. 06/150 $ 329,000
793 Rowan Companies Inc. .............................. Jan. 06/35 134,810
68 Rowan Companies Inc. .............................. Jan. 06/37.50 3,400
50 Rowan Companies Inc. .............................. Jan. 06/40 625
106 Suncor Energy Inc. ................................ Jan. 06/55 88,510
80 Suncor Energy Inc. ................................ Jan. 06/65 10,400
144 Suncor Energy Inc. ................................ Mar. 06/60 95,040
250 Suncor Energy Inc. ................................ Mar. 06/65 97,500
250 Suncor Energy Inc. ................................ Mar. 06/70 52,500
275 Teck Cominco Ltd., Cl. B(a) ....................... Feb. 06/56 169,147
175 Teck Cominco Ltd., Cl. B(a) ....................... Feb. 06/58 83,552
100 Teck Cominco Ltd., Cl. B(a) ....................... Feb. 06/60 35,916
450 Tesoro Corp. ...................................... Feb. 06/65 117,000
150 Tesoro Corp. ...................................... May 06/70 55,500
400 Total SA, ADR ..................................... Jan. 06/145.62 4,480
200 Total SA, ADR ..................................... Feb. 06/140 6,000
80 Transocean Inc. ................................... Jan. 06/70 18,400
650 Transocean Inc. ................................... Feb. 06/60 669,500
120 Transocean Inc. ................................... Feb. 06/65 80,400
1,214 Valero Energy Corp. ............................... Jan. 06/57.50 18,210
700 Valero Energy Corp. ............................... Mar. 06/57.50 116,900
120 Weatherford
International Ltd. .............................. Jan. 06/32.50 45,600
240 Weatherford
International Ltd. .............................. Jan. 06/35 49,200
230 Weatherford
International Ltd. ............................... Feb. 06/32.50 98,900
1,376 Weatherford
International Ltd. ............................... Feb. 06/35 357,760
84 Weatherford
International Ltd. ............................... May 06/40 13,440
215 Weyerhaeuser Co. ................................... Jan. 06/65 43,000
340 Weyerhaeuser Co. ................................... Jan. 06/70 4,250
35 Weyerhaeuser Co. ................................... Jan. 06/75 700
430 Williams Companies Inc. ............................ Jan. 06/22.50 34,400
840 Williams Companies Inc. ............................ Jan. 06/25 12,600
30 Williams Companies Inc. ............................ Feb. 06/22.50 4,800
200 Williams Companies Inc. ............................ Feb. 06/25 10,000
545 XTO Energy Inc. .................................... Feb. 06/45 130,800
200 XTO Energy Inc. .................................... May 06/50 42,000
------------
TOTAL CALL OPTIONS WRITTEN
(Premiums received $14,592,858) .................. $ 27,469,822
============
----------
(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 Krones.
(e) Securities, or a portion thereof, with a value of $100,255,390 pledged as
collateral for options written.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2005
ASSETS:
Investments, at value (cost $324,321,208) ................... $393,544,959
Cash ........................................................ 23,874,259
Receivable for investments sold ............................. 7,888,484
Dividends receivable ........................................ 125,687
Other assets ................................................ 13,663
------------
TOTAL ASSETS ................................................ 425,447,052
------------
LIABILITIES:
Call options written
(premiums received $14,592,858) ........................... 27,469,822
Put options written
(premiums received $133,041) .............................. 14,350
Foreign currency, at value (cost $3,553,029) ................ 3,463,547
Payable to custodian ........................................ 503,535
Dividends payable ........................................... 3,194,276
Payable for investment advisory fees ........................ 332,482
Payable for offering expenses ............................... 56,905
Other accrued expenses ...................................... 203,151
------------
TOTAL LIABILITIES ........................................... 35,238,068
------------
NET ASSETS applicable to 17,745,981
shares outstanding ........................................ $390,208,984
============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at $.001 par value ........... $ 17,746
Additional paid-in capital .................................. 338,385,631
Undistributed net investment income ......................... 14,473
Accumulated distributions in excess of net realized
gain on investments, securities sold short, options,
and foreign currency transactions ......................... (4,633,894)
Net unrealized appreciation on investments .................. 69,223,751
Net unrealized depreciation on options ...................... (12,758,273)
Net unrealized depreciation on foreign
currency translations ..................................... (40,450)
------------
NET ASSETS .................................................. $390,208,984
============
NET ASSET VALUE:
($390,208,984 / 17,745,981 shares outstanding;
unlimited number of shares authorized) ...................... $ 21.99
============
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 2005 (a)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $101,507) ................ $ 2,750,443
Interest .................................................... 1,587,383
------------
TOTAL INVESTMENT INCOME ..................................... 4,337,826
------------
EXPENSES:
Investment advisory fees .................................... 2,678,913
Shareholder communications expenses ......................... 120,000
Payroll expenses ............................................ 75,792
Legal and audit fees ........................................ 57,880
Trustees' fees .............................................. 57,064
Custodian fees .............................................. 28,309
Shareholder services fees ................................... 10,915
Miscellaneous expenses ...................................... 55,458
------------
TOTAL EXPENSES .............................................. 3,084,331
------------
NET INVESTMENT INCOME ....................................... 1,253,495
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SECURITIES SOLD SHORT,
OPTIONS, AND FOREIGN CURRENCY:
Net realized gain on investments ............................ 16,446,495
Net realized gain on securities sold short .................. 408
Net realized loss on options ................................ (1,978,480)
Net realized gain on foreign currency transactions .......... 184,704
------------
Net realized gain on investments, securities sold short,
options, and foreign currency transactions ................ 14,653,127
Net change in unrealized appreciation/depreciation
on investments, options, and foreign
currency translations ..................................... 56,425,028
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SECURITIES SOLD SHORT,
OPTIONS, AND FOREIGN CURRENCY ............................. 71,078,155
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................... $ 72,331,650
============
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED
DECEMBER 31, 2005 (a)
---------------------
OPERATIONS:
Net investment income .................................................................................... $ 1,253,495
Net realized gain on investments, securities sold short, options, and foreign currency transactions ...... 14,653,127
Net change in unrealized appreciation/depreciation on investments, options, and foreign currency
translations ........................................................................................... 56,425,028
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..................................................... 72,331,650
-------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income .................................................................................... (1,321,765)
Net realized short-term gain on investments, securities sold short, options, and foreign currency
translations ........................................................................................... (19,204,278)
-------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS ............................................................... (20,526,043)
-------------
TRUST SHARE TRANSACTIONS:
Net increase in net assets from common shares issued upon reinvestment of dividends and distributions
and common shares issued in offering ................................................................... 339,007,369
Offering costs for common shares charged to paid-in-capital .............................................. (704,000)
-------------
NET INCREASE IN NET ASSETS FROM TRUST SHARE TRANSACTIONS ................................................. 338,303,369
-------------
NET INCREASE IN NET ASSETS ............................................................................... 390,108,976
NET ASSETS:
Beginning of period ...................................................................................... 100,008
-------------
End of period (including undistributed net investment income of $14,473) ................................. $ 390,208,984
=============
----------
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 29, 2005.
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
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 and natural resources industries. As part of its investment
strategy, the Trust intends to earn income through an option strategy of writing
(selling) covered call options on equity securities in its portfolio. 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 and oil, paper, food and agriculture, forestry products,
metals, and minerals as well as related transportation companies and equipment
manufacturers ("Natural Resources Companies"). The Trust may invest in the
securities of companies located anywhere in the world.
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 with remaining maturities
of 60 days or less that are not credit impaired are valued at amortized cost,
unless the Board determines such amount does not reflect the securities' fair
value, in which case these securities will be 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 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. Futures contracts are
valued at the closing settlement price of the exchange or board of trade on
which the applicable contract is traded.
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
7
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
At December 31, 2005, there were no open repurchase agreements.
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 stays 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.
SECURITIES SOLD SHORT. The Trust may enter into short sale transactions. A
short sale involves selling a security which the Trust does not own. The
proceeds received for short sales are recorded as liabilities and the Trust
records an unrealized gain or loss to the extent of the difference between the
proceeds received and the value of the open short position on the day of
determination. The Trust records a realized gain or loss when the short position
is closed out. By entering into a short sale, the Trust 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 Trust on the ex-dividend date and
interest expense is recorded on the accrual basis. At December 31, 2005, there
were no open securities sold short.
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 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 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.
FOREIGN TAXES. The Trust may be subject to foreign taxes on income, gains
on investments or currency repatriation, a portion of which may be recoverable.
The Trust 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.
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 a magnified effect in its total return.
8
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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
Trust is informed of the dividend.
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 differing treatments of
income and gains on various investment securities held by the Trust, foreign
currency transactions, timing differences, and differing characterizations of
distributions made by the Trust. 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
Trust and the calculation of net investment income per share in the Financial
Highlights includes these adjustments. For the year ended December 31, 2005
reclassifications were made to increase accumulated net investment income by
$82,743 and to increase distributions in excess of net realized gains on
investments by $82,743.
The tax character of distributions paid in 2005 was $20,526,043 of
ordinary income (inclusive of short-term capital gains).
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.
As of December 31, 2005, the components of accumulated earnings/(losses)
on a tax basis were as follows:
Net unrealized appreciation on investments, foreign
payables and receivables ........................... $ 63,215,442
Net unrealized depreciation on options ............... (12,758,273)
Net unrealized depreciation on foreign currency ...... (40,450)
Undistributed ordinary income
(inclusive of short-term capital gain) ............. 1,287,437
Undistributed long-term gain ......................... 101,451
------------
Total ................................................ $ 51,805,607
============
The following summarizes the tax cost of investments and related unrealized
appreciation/depreciation at December 31, 2005:
GROSS GROSS NET UNREALIZED
COST/ UNREALIZED UNREALIZED APPRECIATION/
PREMIUMS APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ ------------ --------------
Investments ......... $330,329,517 $71,463,094 $ (8,247,652) $ 63,215,442
Options written ..... (14,725,899) 2,550,707 (15,308,980) (12,758,273)
----------- ------------ ------------
$74,013,801 $(23,556,632) $ 50,457,169
=========== ============ ============
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 ("NAV") per share is a
Trust expense pursuant to the Investment Advisory Agreement between the Trust
and the Adviser. During the period ended December 31, 2005, the Trust reimbursed
the Adviser $33,750 in connection with the cost of computing the Trust's NAV,
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 $5,164 for the period ended
December 31, 2005, which is included in payroll expenses in the Statement of
Operations.
4. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the period ended December 31, 2005, other than short-term securities, aggregated
$701,092,273 and $419,495,991, respectively.
Options activity for the Trust for the period ended December 31, 2005 was
as follows:
NUMBER OF
CONTRACTS PREMIUMS
----------- ------------
Options outstanding at March 29, 2005 ......... -- --
Stock splits on options ....................... 3,835 --
Options written ............................... 6,334,425 $ 39,638,419
Options closed ................................ (56,909) (5,978,850)
Options expired ............................... (144,765) (7,695,580)
Options exercised ............................. (6,022,311) (11,238,090)
----------- ------------
Options outstanding at December 31, 2005 ...... 114,275 $ 14,725,899
=========== ============
9
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 December 31, 2005, the Trust did not repurchase any shares of
beneficial interest in the open market.
Transactions in shares of beneficial interest were as follows:
Period Ended
December 31, 2005 (a)
-------------------------
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 .......... 140,745 2,847,369
---------- ------------
Net increase ............................ 17,745,981 $338,403,377
========== ============
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 29, 2005.
6. 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.
7. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the Securities and Exchange
Commission (the "SEC") requesting information on mutual fund trading practices
involving certain funds managed by the Adviser. GAMCO Investors, Inc., the
Adviser's parent company, is responding to these requests for documents and
testimony. On a separate matter, in September 2005, the Adviser was informed by
the staff of the SEC that the staff may recommend to the Commission that an
administrative remedy and a monetary penalty be sought from the Adviser in
connection with the actions of two of seven closed-end funds managed by the
Adviser relating to Section 19(a) and Rule 19a-1 of the 1940 Act. These
provisions require registered investment companies to provide written statements
to shareholders when a dividend is made from a source other than net investment
income. While the two closed-end funds sent annual statements and provided other
materials containing this information, the funds did not send written statements
to shareholders with each distribution in 2002 and 2003. The Adviser believes
that all of the funds are now in compliance. The Adviser believes that these
matters would have no effect on the Trust or any material adverse effect on the
Adviser or its ability to manage the Trust. The staff's notice to the Adviser
did not relate to the Trust.
10
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
DECEMBER 31, 2005 (a)
---------------------
OPERATING PERFORMANCE:
Net asset value, beginning of period ................................................................... $ 19.06(b)
--------
Net investment income .................................................................................. 0.08
Net realized and unrealized gain on investments ........................................................ 4.01
--------
Total from investment operations ....................................................................... 4.09
--------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income .................................................................................. (0.07)
Net realized short-term gains on investments, securities sold short, options, and foreign currency
transactions ....................................................................................... (1.09)
--------
Total distributions to common shareholders ............................................................. (1.16)
--------
CAPITAL SHARE TRANSACTIONS:
Decrease in net asset value from common share transactions ............................................. (0.00)(d)
--------
Total capital share transactions ....................................................................... (0.00)(d)
--------
NET ASSET VALUE, END OF PERIOD ......................................................................... $ 21.99
========
Net asset value total return + ......................................................................... 22.0%
========
Market value, end of period ............................................................................ $ 21.80
========
Total investment return ++ ............................................................................. 15.2%
========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets end of period (in 000's) .................................................................... $390,209
Ratio of net investment income to average net assets ................................................... 0.47%(c)
Ratio of operating expenses to average net assets ...................................................... 1.15%(c)
Portfolio turnover rate ................................................................................ 142.5%
----------
+ Based on net asset value per share at commencement of operations of $19.06
per share, adjusted for reinvestment of distributions at the net asset
value per share on the ex-dividend dates. 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 reinvestments of distributions. 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.
(d) Amount represents less than $0.005 per share.
See accompanying notes to financial statements.
11
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
The Gabelli Global Gold, Natural Resources & Income Trust:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Gabelli Global Gold, Natural
Resources & Income Trust (hereafter referred to as the "Trust") at December 31,
2005 and the results of its operations, the changes in its net assets and the
financial highlights for the period March 29, 2005 (commencement of operations),
through December 31, 2005 in conformity with accounting principles generally
accepted in the United States of America. The financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included confirmation
of securities at December 31, 2005 by correspondence with the custodian and
brokers, provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 28, 2006
12
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ADDITIONAL FUND INFORMATION (UNAUDITED)
The names and business addresses of the Trustees and principal officers of
this Fund are set forth in the following table, together with their positions
and their principal occupations during the past five years and, in the case of
the Trustees, their positions with certain other organizations and companies.
TERM OF NUMBER OF
OFFICE AND FUNDS IN TRUST
NAME, POSITION(S) LENGTH OF COMPLEX
ADDRESS 1 TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE SERVED 2 TRUSTEE DURING PAST FIVE YEARS HELD BY TRUSTEE 4
----------------- ---------- -------------- ----------------------- -------------------
INTERESTED TRUSTEE:
SALVATORE M. SALIBELLO 3 Since 2005** 3 Certified Public Accountant and Managing --
Trustee Partner of the accounting firm Salibello
Age: 60 & Broder, LLP, since 1978
NON-INTERESTED TRUSTEES:
ANTHONY J. COLAVITA Since 2005* 34 Partner in the law firm of --
Trustee Anthony J. Colavita, P.C.
Age: 70
JAMES P. CONN Since 2005** 14 Former Managing Director and Chief Investment Director of LaQuinta
Trustee Officer of Financial Security Assurance Corp. (hotels) and
Age: 67 Holdings Ltd. (insurance holding company) First Republic Bank
(1992-1998) (banking)
MARIO D'URSO Since 2005*** 3 Chairman of Mittel Capital Markets S.p.A., --
Trustee since 2001; Senator in the Italian
Age: 65 Parliament, (1996-2001)
VINCENT D. ENRIGHT Since 2005*** 14 Former Senior Vice President and Chief Director of Aphton
Trustee Financial Officer of KeySpan Energy Corporation
Age: 62 Corporation (biopharmaceuticals)
FRANK J. FAHRENKOPF, JR. Since 2005* 5 President and Chief Executive Officer of the Director of First
Trustee American Gaming Association; Partner in Republic Bank
Age: 66 the law firm of Hogan & Hartson LLP; (banking)
Co-Chairman of the Commission on Presidential
Debates; Former Chairman of the Republican
National Committee
MICHAEL J. MELARKEY Since 2005*** 3 Partner in the law firm of Avansino, Director of Southwest
Trustee Melarkey, Knobel & Mulligan Gas Corporation
Age: 56 (natural gas utility)
ANTHONIE C. VAN EKRIS Since 2005** 18 Chairman of BALMAC International, Inc. --
Trustee (commodities and futures trading)
Age: 71
SALVATORE J. ZIZZA Since 2005* 25 Chairman of Hallmark Electrical Supplies Corp. Director of Hollis-Eden
Trustee Pharmaceuticals
Age: 60 (biotechnology) and
Earl Scheib, Inc.
(automotive services)
13
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)
TERM OF
OFFICE AND
NAME, POSITION(S) LENGTH OF
ADDRESS 1 TIME PRINCIPAL OCCUPATION(S)
AND AGE SERVED 2 DURING PAST FIVE YEARS
---------------- ----------- -----------------------
OFFICERS:
BRUCE N. ALPERT Since 2005 Executive Vice President and Chief Operating
President Officer of Gabelli Funds, LLC since 1988 and
Age: 54 an officer of all of the registered investment
companies in the Gabelli Funds complex. Director
and President of Gabelli Advisers, Inc.
CARTER W. AUSTIN Since 2005 Vice President of The Gabelli Equity Trust
Vice President since 2000 and Vice President of the Gabelli
Age: 39 Dividend & Income Trust since 2003. Vice
President of Gabelli Funds, LLC since 1996.
JAMES E. MCKEE Since 2005 Vice President, General Counsel and Secretary
Secretary of GAMCO Investors, Inc. (since 1999)
Age: 42 and of GAMCO Asset Management Inc.
(since 1993); Secretary of all of the registered
investment companies in the Gabelli Funds complex.
JOSEPH H. EGAN Since 2005 Chief Financial Officer of Gabelli Funds, LLC since
Treasurer 2004; Assistant Treasurer of all other registered investment
Age: 61 companies in the Gabelli Funds complex since 2004;
Vice President of Deutsche Investment Management
Americas, Inc. (formerly Scudder, Stevens & Clark, Inc.)
PETER D. GOLDSTEIN Since 2005 Director of Regulatory Affairs for GAMCO Investors, Inc.
Chief Compliance Officer since 2004; Chief Compliance Officer of all of the registered
Age: 52 investment companies in the Gabelli Funds complex;
Vice President of Goldman Sachs Asset Management from
2000 through 2004.
----------
1 Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
2 The Trust's Board of Trustees is divided into three classes, each class
having a term of three years. Each year the term of office of one class
expires and the successor or successors elected to such class serve for a
three year term. The three year term for each class expires as follows:
* - Term expires at the Trust's 2008 Annual Meeting of Shareholders
and until their successors are duly elected and qualified.
** - Term expires at the Trust's 2006 Annual Meeting of Shareholders
and until their successors are duly elected and qualified.
*** - Term expires at the Trust's 2007 Annual Meeting of Shareholders
and until their successors are duly elected and qualified.
Each officer will hold office for an indefinite term until the date he or
she resigns or retires or until his or her successor is elected and
qualified.
3 Mr. Salibello may be considered an "interested person" of the Fund as a
result of being a partner in an accounting firm that provides professional
services to affiliates of the investment adviser. Effective November 16,
2005, Mr. Karl Otto Pohl resigned from the Board of Trustees and now
serves as Trustee Emeritus.
4 This column includes only directorships of companies required to report to
the SEC under the Securities Exchange Act of 1934 (i.e. public companies)
or other investment companies registered under the 1940 Act.
14
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
INCOME TAX INFORMATION (UNAUDITED)
DECEMBER 31, 2005
CASH DIVIDENDS AND DISTRIBUTIONS
TOTAL AMOUNT ORDINARY DIVIDEND
PAYABLE RECORD PAID INVESTMENT REINVESTMENT
DATE DATE PER SHARE (a) INCOME (a) PRICE
----------- ---------- ------------- ------------- ------------
COMMON SHARES
06/24/05 06/16/05 $0.14000 $0.14000 $19.69890
07/25/05 07/15/05 0.14000 0.14000 19.98110
08/25/05 08/17/05 0.14000 0.14000 20.31000
09/26/05 09/16/05 0.14000 0.14000 21.05150
10/25/05 10/17/05 0.14000 0.14000 20.60000
11/23/05 11/15/05 0.14000 0.14000 21.51880
12/23/05 12/15/05 0.14000 0.14000 21.63490
01/10/06 12/30/05 0.18000 0.18000 22.49190
-------- --------
Total Common Stock $1.16000 $1.16000
A Form 1099-DIV has been mailed to all shareholders of record which sets
forth specific amounts to be included in your 2005 tax returns. Ordinary income
distributions include net investment income and realized net short-term capital
gains.
CORPORATE DIVIDENDS RECEIVED DEDUCTION, QUALIFIED DIVIDEND INCOME AND U.S.
GOVERNMENT SECURITIES INCOME
The Trust paid to common shareholders an ordinary income dividend of
$1.16000 per share in 2005. For the fiscal year ended December 31, 2005, 7.80%
of the ordinary dividend qualified for the dividend received deduction available
to corporations, and 0.86% of the ordinary income distribution was deemed
qualified dividend income that is reported in box 1b on Form 1099-DIV. The
percentage of ordinary income dividends paid by the Trust during 2005 derived
from U.S. Government Securities was 1.61%. Such income is exempt from state and
local taxes in all states. However, many states, including New York and
California, allow a tax exemption for a portion of the income earned only if a
mutual fund has invested at least 50% of its assets at the end of each quarter
of its fiscal year in U.S. Government Securities. The Trust did not meet this
strict requirement in 2005. The percentage of U.S. Government Securities held as
of December 31, 2005 was 6.99%.
HISTORICAL DISTRIBUTION SUMMARY
COMMON STOCK
SHORT-TERM
INVESTMENT CAPITAL TOTAL
INCOME (b) GAINS (b) DISTRIBUTIONS (a)
---------- ----------- -----------------
2005 ................... $0.08460 $1.07540 $1.16000
----------
(a) Total amounts may differ due to rounding.
(b) Taxable as ordinary income for Federal tax purposes.
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 ("Trust") to automatically reinvest dividends payable to common
shareholders. 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 common shares to participants upon an
income dividend or a capital gains distribution regardless of whether the shares
are trading at a discount or a premium to net asset value. All distributions to
shareholders whose shares are registered in their own names will be
automatically reinvested pursuant to the Plan in additional shares of the 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 or requesting a copy of the terms of the
Plan may contact AST at (888) 422-3262.
If your shares are held in the name of a broker, bank or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your distributions will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of common shares distributed to participants in the Plan in
lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the 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 ("ASE") trading
day, the next trading day. If the net asset value of the common shares at the
time of valuation exceeds the market price of the common shares, participants
will receive common shares from the 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 ASE, 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.
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.
16
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.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to AST for investments in the Trust's common shares at
the then current market price. Shareholders may send an amount from $250 to
$10,000. AST will use these funds to purchase shares in the open market on or
about the 1st and 15th of each month. AST will charge each shareholder who
participates a pro rata share of the brokerage commissions. Brokerage charges
for such purchases are expected to be less than the usual brokerage charge for
such transactions. It is suggested that any voluntary cash payments be sent to
American Stock Transfer, 6201 15th Avenue, Brooklyn, NY 11219 such that AST
receives such payments approximately 10 days before the investment date. Funds
not received at least five days before the investment date shall be held for
investment until the next purchase date. A payment may be withdrawn without
charge if notice is received by AST at least 48 hours before such payment is to
be invested.
SHAREHOLDERS WISHING TO LIQUIDATE 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.
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.
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.
--------------------------------------------------------------------
The Annual Meeting of The Gabelli Global Gold, Natural Resources &
Income Trust's stockholders will be held at 12:30 P.M. on Monday,
May 15, 2006 at the Greenwich Library in Greenwich, Connecticut.
--------------------------------------------------------------------
17
--------------------------------------------------------------------------------
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
AND YOUR PERSONAL PRIVACY
WHO ARE WE?
The Gabelli Global Gold, Natural Resources & Income Trust (the "Trust") is a
closed-end investment company registered with the Securities and Exchange
Commission under the Investment Company Act of 1940. We are managed by Gabelli
Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc.
is a publicly held company that has subsidiaries that provide investment
advisory or brokerage services for a variety of clients.
WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A
GABELLI CUSTOMER?
When you purchase shares of the Trust on the American Stock Exchange, you have
the option of registering directly with our transfer agent in order, for
example, to participate in our dividend reinvestment plan.
o INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could include your
name, address, telephone number, social security number, bank account
number, and other information.
o INFORMATION ABOUT YOUR TRANSACTIONS WITH US. This would include
information about the shares that you buy or sell, it may also include
information about whether you sell or exercise rights that we have issued
from time to time. If we hire someone else to provide services--like a
transfer agent--we will also have information about the transactions that
you conduct through them.
WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
We do not disclose any non-public personal information about our customers or
former customers to anyone, other than our affiliates, our service providers who
need to know such information, and as otherwise permitted by law. If you want to
find out what the law permits, you can read the privacy rules adopted by the
Securities and Exchange Commission. They are in volume 17 of the Code of Federal
Regulations, Part 248. The Commission often posts information about its
regulations on its web site, WWW.SEC.GOV.
WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
We restrict access to non-public personal information about you to the people
who need to know that information in order to provide services to you or the
Fund and to ensure that we are complying with the laws governing the securities
business. We maintain physical, electronic, and procedural safeguards to keep
your personal information confidential.
--------------------------------------------------------------------------------
[GRAPHIC]
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
Salvatore M. Salibello
CERTIFIED PUBLIC ACCOUNTANT,
SALIBELLO & BRODER, LLP
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: 17,745,981
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) 921-5070.
--------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM or e-mail us at: closedend@gabelli.com
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that The Gabelli Global Gold, Natural Resources
& Income Trust may, from time to time, purchase its common 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
PHONE: 800-GABELLI (800-422-3554)
FAX: 914-921-5118 INTERNET: WWW.GABELLI.COM
E-MAIL: CLOSEDEND@GABELLI.COM GGN AR 2005
ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report, has
adopted a code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party.
(c) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, and that relates to any element of
the code of ethics description.
(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, that relates to one or more of the
items set forth in paragraph (b) of this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period covered by the report, the registrant's Board of
Trustees has determined that Salvatore J. Zizza is qualified to serve as an
audit committee financial expert serving on its audit committee and that he is
"independent," as defined by Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
AUDIT FEES
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or services that
are normally provided by the accountant in connection with statutory
and regulatory filings or engagements for those fiscal years are
$70,000 in 2005 and $0 in 2004.
AUDIT-RELATED FEES
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the registrant's
financial statements and are not reported under paragraph (a) of this
Item are $0 in 2005 and $0 in 2004.
TAX FEES
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning are $10,880 in 2005 and $0 in
2004.
Tax fees represent tax compliance services provided in connection with
the review of the Registrant's tax returns and for procedures performed
relating to qualified covered calls.
ALL OTHER FEES
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are $0
in 2005 and $0 in 2004.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
Pre-Approval Policies and Procedures. The Audit Committee ("Committee")
of the registrant is responsible for pre-approving (i) all audit and
permissible non-audit services to be provided by the independent
auditors to the registrant and (ii) all permissible non-audit services
to be provided by the independent auditors to the Adviser, Gabelli
Funds, LLC, and any affiliate of Gabelli Funds, LLC ("Gabelli") that
provides services to the registrant (a "Covered Services Provider") if
the independent auditors' engagement related directly to the operations
and financial reporting of the registrant. The Committee may delegate
its responsibility to pre-approve any such audit and permissible
non-audit services to the Chairperson of the Committee, and the
Chairperson must report to the Committee, at its next regularly
scheduled meeting after the Chairperson's pre-approval of such
services, his or her decision(s). The Committee may also establish
detailed pre-approval policies and procedures for pre-approval of such
services in accordance with applicable laws, including the delegation
of some or all of the Committee's pre-approval responsibilities to the
other persons (other than Gabelli or the registrant's officers).
Pre-approval by the Committee of any permissible non-audit services is
not required so long as: (i) the aggregate amount of all such
permissible non-audit services provided to the registrant, Gabelli and
any Covered Services Provider constitutes not more than 5% of the total
amount of revenues paid by the registrant to its independent auditors
during the fiscal year in which the permissible non-audit services are
provided; (ii) the permissible non-audit services were not recognized
by the registrant at the time of the engagement to be non-audit
services; and (iii) such services are promptly brought to the attention
of the Committee and approved by the Committee or Chairperson prior to
the completion of the audit.
(e)(2) The percentage of services described in each of paragraphs (b) through
(d) of this Item that were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:
(b) 100%
(c) 100%
(d) N/A
(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees
was zero percent (0%).
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services
to the registrant for each of the last two fiscal years of the
registrant was $0 in 2005 and $0 in 2004.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately designated audit committee consisting of the
following members: Vincent D. Enright, Frank J. Fahrenkopf, Jr. and Salvatore J.
Zizza.
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.
The Proxy Voting Policies are attached herewith.
THE VOTING OF PROXIES ON BEHALF OF CLIENTS
Rules 204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and
Rule 30b1-4 under the Investment Company Act of 1940 require investment advisers
to adopt written policies and procedures governing the voting of proxies on
behalf of their clients.
These procedures will be used by GAMCO Asset Management Inc., Gabelli
Funds, LLC, Gabelli Securities, Inc., and Gabelli Advisers, Inc. (collectively,
the "Advisers") to determine how to vote proxies relating to portfolio
securities held by their clients, including the procedures that the Advisers use
when a vote presents a conflict between the interests of the shareholders of an
investment company managed by one of the Advisers, on the one hand, and those of
the Advisers; the principal underwriter; or any affiliated person of the
investment company, the Advisers, or the principal underwriter. These procedures
will not apply where the Advisers do not have voting discretion or where the
Advisers have agreed to with a client to vote the client's proxies in accordance
with specific guidelines or procedures supplied by the client (to the extent
permitted by ERISA).
I. PROXY VOTING COMMITTEE
The Proxy Voting Committee was originally formed in April 1989 for the purpose
of formulating guidelines and reviewing proxy statements within the parameters
set by the substantive proxy voting guidelines originally published by GAMCO
Investors, Inc. in 1988 and updated periodically, a copy of which are appended
as Exhibit A. The Committee will include representatives of Research,
Administration, Legal, and the Advisers. Additional or replacement members of
the Committee will be nominated by the Chairman and voted upon by the entire
Committee.
Meetings are held as needed basis to form views on the manner in
which the Advisers should vote proxies on behalf of their clients.
In general, the Director of Proxy Voting Services, using the Proxy
Guidelines, recommendations of Institutional Shareholder Corporate Governance
Service ("ISS"), other third-party services and the analysts of Gabelli &
Company, Inc., will determine how to vote on each issue. For non-controversial
matters, the Director of Proxy Voting Services may vote the proxy if the vote is
(1) consistent with the recommendations of the issuer's Board of Directors and
not contrary to the Proxy Guidelines; (2) consistent with the recommendations of
the issuer's Board of Directors and is a non-controversial issue not covered by
the Proxy Guidelines; or (3) the vote is contrary to the recommendations of the
Board of Directors but is consistent with the Proxy Guidelines. In those
instances, the Director of Proxy Voting Services or the Chairman of the
Committee may sign and date the proxy statement indicating how each issue will
be voted.
All matters identified by the Chairman of the Committee, the Director
of Proxy Voting Services or the Legal Department as controversial, taking into
account the recommendations of ISS or other third party services and the
analysts of Gabelli & Company, Inc., will be presented to the Proxy Voting
Committee. If the Chairman of the Committee, the Director of Proxy Voting
Services or the Legal Department has identified the matter as one that (1) is
controversial; (2) would benefit from deliberation by the Proxy Voting
Committee; or (3) may give rise to a conflict of interest between the Advisers
and their clients, the Chairman of the Committee will initially determine what
vote to recommend that the Advisers should cast and the matter will go before
the Committee.
A. CONFLICTS OF INTEREST.
The Advisers have implemented these proxy
voting procedures in order to prevent conflicts of interest
from influencing their proxy voting decisions. By following
the Proxy Guidelines, as well as the recommendations of ISS,
other third-party services and the analysts of Gabelli &
Company, the Advisers are able to avoid, wherever possible,
the influence of potential conflicts of interest.
Nevertheless, circumstances may arise in which one or more of
the Advisers are faced with a conflict of interest or the
appearance of a conflict of interest in connection with its
vote. In general, a conflict of interest may arise when an
Adviser knowingly does business with an issuer, and may appear
to have a material conflict between its own interests and the
interests of the shareholders of an investment company managed
by one of the Advisers regarding how the proxy is to be voted.
A conflict also may exist when an Adviser has actual knowledge
of a material business arrangement between an issuer and an
affiliate of the Adviser.
In practical terms, a conflict of interest may arise, for
example, when a proxy is voted for a company that is a client
of one of the Advisers, such as GAMCO Asset Management Inc. A
conflict also may arise when a client of one of the Advisers
has made a shareholder proposal in a proxy to be voted upon by
one or more of the Advisers. The Director of Proxy Voting
Services, together with the Legal Department, will scrutinize
all proxies for these or other situations that may give rise
to a conflict of interest with respect to the voting of
proxies.
A. OPERATION OF PROXY VOTING COMMITTEE.
For matters submitted to the Committee, each member of the
Committee will receive, prior to the meeting, a copy of the
proxy statement, any relevant third party research, a summary
of any views provided by the Chief Investment Officer and any
recommendations by Gabelli & Company, Inc. analysts. The Chief
Investment Officer or the Gabelli & Company, Inc. analysts may
be invited to present their viewpoints. IF THE DIRECTOR OF
PROXY VOTING SERVICES or the Legal Department believe that the
matter before the committee is one with respect to which a
conflict of interest may exist between the Advisers and their
clients, counsel will provide an opinion to the Committee
concerning the conflict. If the matter is one in which the
interests of the clients of one or more of Advisers may
diverge, counsel will so advise and the Committee may make
different recommendations as to different clients. For any
matters where the recommendation may trigger appraisal rights,
counsel will provide an opinion concerning the likely risks
and merits of such an appraisal action.
Each matter submitted to the Committee will be determined by the vote
of a majority of the members present at the meeting. Should the vote concerning
one or more recommendations be tied in a vote of the Committee, the Chairman of
the Committee will cast the deciding vote. The Committee will notify the proxy
department of its decisions and the proxies will be voted accordingly.
Although the Proxy Guidelines express the normal preferences for the
voting of any shares not covered by a contrary investment guideline provided by
the client, the Committee is not bound by the preferences set forth in the Proxy
Guidelines and will review each matter on its own merits. Written minutes of all
Proxy Voting Committee meetings will be maintained. The Advisers subscribe to
ISS, which supplies current information on companies, matters being voted on,
regulations, trends in proxy voting and information on corporate governance
issues.
If the vote cast either by the analyst or as a result of the
deliberations of the Proxy Voting Committee runs contrary to the recommendation
of the Board of Directors of the issuer, the matter will be referred to legal
counsel to determine whether an amendment to the most recently filed Schedule
13D is appropriate.
II. SOCIAL ISSUES AND OTHER CLIENT GUIDELINES
If a client has provided special instructions relating to the voting of
proxies, they should be noted in the client's account file and forwarded to the
proxy department. This is the responsibility of the investment professional or
sales assistant for the client. In accordance with Department of Labor
guidelines, the Advisers' policy is to vote on behalf of ERISA accounts in the
best interest of the plan participants with regard to social issues that carry
an economic impact. Where an account is not governed by ERISA, the Advisers will
vote shares held on behalf of the client in a manner consistent with any
individual investment/voting guidelines provided by the client. Otherwise the
Advisers will abstain with respect to those shares.
III. CLIENT RETENTION OF VOTING RIGHTS
If a client chooses to retain the right to vote proxies or if there is
any change in voting authority, the following should be notified by the
investment professional or sales assistant for the client.
- Operations
- Legal Department
- Proxy Department
- Investment professional assigned to the account
In the event that the Board of Directors (or a Committee thereof) of
one or more of the investment companies managed by one of the Advisers has
retained direct voting control over any security, the Proxy Voting Department
will provide each Board Member (or Committee member) with a copy of the proxy
statement together with any other relevant information including recommendations
of ISS or other third-party services.
IV. VOTING RECORDS
The Proxy Voting Department will retain a record of matters voted upon
by the Advisers for their clients. The Advisers' staff may request proxy-voting
records for use in presentations to current or prospective clients. Requests for
proxy voting records should be made at least ten days prior to client meetings.
If a client wishes to receive a proxy voting record on a quarterly,
semi-annual or annual basis, please notify the Proxy Voting Department. The
reports will be available for mailing approximately ten days after the quarter
end of the period. First quarter reports may be delayed since the end of the
quarter falls during the height of the proxy season.
A letter is sent to the custodians for all clients for which the
Advisers have voting responsibility instructing them to forward all proxy
materials to:
[Adviser name]
Attn: Proxy Voting Department
One Corporate Center
Rye, New York 10580-1433
The sales assistant sends the letters to the custodians along with the
trading/DTC instructions. Proxy voting records will be retained in compliance
with Rule 204-2 under the Investment Advisers Act.
V. VOTING PROCEDURES
1. Custodian banks, outside brokerage firms and Wexford Clearing Services
Corporation are responsible for forwarding proxies directly to GAMCO.
Proxies are received in one of two forms:
o Shareholder Vote Authorization Forms (VAFs) - Issued by ADP. VAFs must be
voted through the issuing institution causing a time lag. ADP is an outside
service contracted by the various institutions to issue proxy materials.
o Proxy cards which may be voted directly.
2. Upon receipt of the proxy, the number of shares each form represents is
logged into the proxy system according to security.
3. In the case of a discrepancy such as an incorrect number of shares, an
improperly signed or dated card, wrong class of security, etc., the issuing
custodian is notified by phone. A corrected proxy is requested. Any arrangements
are made to insure that a proper proxy is received in time to be voted
(overnight delivery, fax, etc.). When securities are out on loan on record date,
the custodian is requested to supply written verification.
4. Upon receipt of instructions from the proxy committee (see Administrative),
the votes are cast and recorded for each account on an individual basis.
Since January 1, 1992, records have been maintained on the Proxy Edge system.
The system is backed up regularly. From 1990 through 1991, records were
maintained on the PROXY VOTER system and in hardcopy format. Prior to 1990,
records were maintained on diskette and in hardcopy format.
PROXY EDGE records include:
Security Name and Cusip Number
Date and Type of Meeting (Annual, Special, Contest)
Client Name
Adviser or Fund Account Number
Directors' Recommendation
How GAMCO voted for the client on each issue
The rationale for the vote when it appropriate
Records prior to the institution of the PROXY EDGE system include:
Security name
Type of Meeting (Annual, Special, Contest)
Date of Meeting
Name of Custodian
Name of Client
Custodian Account Number
Adviser or Fund Account Number
Directors' recommendation
How the Adviser voted for the client on each issue
Date the proxy statement was received and by whom
Name of person posting the vote
Date and method by which the vote was cast
o From these records individual client proxy voting records are compiled. It
is our policy to provide institutional clients with a proxy voting record
during client reviews. In addition, we will supply a proxy voting record at
the request of the client on a quarterly, semi-annual or annual basis.
5. VAFs are kept alphabetically by security. Records for the current proxy
season are located in the Proxy Voting Department office. In preparation for the
upcoming season, files are transferred to an offsite storage facility during
January/February.
6. Shareholder Vote Authorization Forms issued by ADP are always sent directly
to a specific individual at ADP.
7. If a proxy card or VAF is received too late to be voted in the conventional
matter, every attempt is made to vote on one of the following manners:
o VAFs can be faxed to ADP up until the time of the meeting. This is followed
up by mailing the original form.
o When a solicitor has been retained, the solicitor is called. At the
solicitor's direction, the proxy is faxed.
8. In the case of a proxy contest, records are maintained for each opposing
entity.
9. Voting in Person
a) At times it may be necessary to vote the shares in person. In this case, a
"legal proxy" is obtained in the following manner:
o Banks and brokerage firms using the services at ADP:
The back of the VAF is stamped indicating that we wish to vote in person.
The forms are then sent overnight to ADP. ADP issues individual legal proxies
and sends them back via overnight (or the Adviser can pay messenger charges). A
lead-time of at least two weeks prior to the meeting is needed to do this.
Alternatively, the procedures detailed below for banks not using ADP may be
implemented.
o Banks and brokerage firms issuing proxies directly:
The bank is called and/or faxed and a legal proxy is requested.
All legal proxies should appoint:
"REPRESENTATIVE OF [ADVISER NAME] WITH FULL POWER OF SUBSTITUTION."
b) The legal proxies are given to the person ttending the meeting along with
the following supplemental material:
o A limited Power of Attorney appointing the attendee an Adviser
representative.
o A list of all shares being voted by custodian only. Client names and
account numbers are not included. This list must be presented, along with
the proxies, to the Inspectors of Elections and/or tabulator at least
one-half hour prior to the scheduled start of the meeting. The tabulator
must "qualify" the votes (i.e. determine if the vote have previously been
cast, if the votes have been rescinded, etc. vote have previously been
cast, etc.).
o A sample ERISA and Individual contract.
o A sample of the annual authorization to vote proxies form.
o A copy of our most recent Schedule 13D filing (if applicable).
APPENDIX A
PROXY GUIDELINES
===========================================
PROXY VOTING GUIDELINES
===========================================
GENERAL POLICY STATEMENT
It is the policy of GAMCO INVESTORS, INC. to vote in the best economic interests
of our clients. As we state in our Magna Carta of Shareholders Rights,
established in May 1988, we are neither FOR nor AGAINST management. We are for
shareholders.
At our first proxy committee meeting in 1989, it was decided that each proxy
statement should be evaluated on its own merits within the framework first
established by our Magna Carta of Shareholders Rights. The attached guidelines
serve to enhance that broad framework.
We do not consider any issue routine. We take into consideration all of our
research on the company, its directors, and their short and long-term goals for
the company. In cases where issues that we generally do not approve of are
combined with other issues, the negative aspects of the issues will be factored
into the evaluation of the overall proposals but will not necessitate a vote in
opposition to the overall proposals.
BOARD OF DIRECTORS
The advisers do not consider the election of the Board of Directors a routine
issue. Each slate of directors is evaluated on a case-by-case basis.
Factors taken into consideration include:
o Historical responsiveness to shareholders
This may include such areas as:
-Paying greenmail
-Failure to adopt shareholder resolutions receiving a majority of
shareholder votes
o Qualifications
o Nominating committee in place
o Number of outside directors on the board
o Attendance at meetings
o Overall performance
SELECTION OF AUDITORS
In general, we support the Board of Directors' recommendation for audit
BLANK CHECK PREFERRED STOCK
We oppose the issuance of blank check preferred stock.
Blank check preferred stock allows the company to issue stock and establish
dividends, voting rights, etc. without further shareholder approval.
CLASSIFIED BOARD
A classified board is one where the directors are divided into classes with
overlapping terms. A different class is elected at each annual meeting.
While a classified board promotes continuity of directors facilitating long
range planning, we feel directors should be accountable to shareholders on an
annual basis. We will look at this proposal on a case-by-case basis taking into
consideration the board's historical responsiveness to the rights of
shareholders.
Where a classified board is in place we will generally not support attempts to
change to an annually elected board.
When an annually elected board is in place, we generally will not support
attempts to classify the board.
INCREASE AUTHORIZED COMMON STOCK
The request to increase the amount of outstanding shares is considered on a
case-by-case basis.
Factors taken into consideration include:
o Future use of additional shares
-Stock split
-Stock option or other executive compensation plan
-Finance growth of company/strengthen balance sheet
-Aid in restructuring
-Improve credit rating
-Implement a poison pill or other takeover defense
o Amount of stock currently authorized but not yet issued or reserved for
stock option plans
o Amount of additional stock to be authorized and its dilutive effect
We will support this proposal if a detailed and verifiable plan for the use of
the additional shares is contained in the proxy statement.
CONFIDENTIAL BALLOT
We support the idea that a shareholder's identity and vote should be treated
with confidentiality.
However, we look at this issue on a case-by-case basis.
In order to promote confidentiality in the voting process, we endorse the use of
independent Inspectors of Election.
CUMULATIVE VOTING
In general, we support cumulative voting.
Cumulative voting is a process by which a shareholder may multiply the number of
directors being elected by the number of shares held on record date and cast the
total number for one candidate or allocate the voting among two or more
candidates.
Where cumulative voting is in place, we will vote against any proposal to
rescind this shareholder right.
Cumulative voting may result in a minority block of stock gaining representation
on the board. When a proposal is made to institute cumulative voting, the
proposal will be reviewed on a case-by-case basis. While we feel that each board
member should represent all shareholders, cumulative voting provides minority
shareholders an opportunity to have their views represented.
DIRECTOR LIABILITY AND INDEMNIFICATION
We support efforts to attract the best possible directors by limiting the
liability and increasing the indemnification of directors, except in the case of
insider dealing.
EQUAL ACCESS TO THE PROXY
The SEC's rules provide for shareholder resolutions. However, the resolutions
are limited in scope and there is a 500 word limit on proponents' written
arguments. Management has no such limitations. While we support equal access to
the proxy, we would look at such variables as length of time required to
respond, percentage of ownership, etc.
FAIR PRICE PROVISIONS
Charter provisions requiring a bidder to pay all shareholders a fair price are
intended to prevent two-tier tender offers that may be abusive. Typically, these
provisions do not apply to board-approved transactions.
We support fair price provisions because we feel all shareholders should be
entitled to receive the same benefits.
Reviewed on a case-by-case basis.
GOLDEN PARACHUTES
Golden parachutes are severance payments to top executives who are terminated or
demoted after a takeover.
We support any proposal that would assure management of its own welfare so that
they may continue to make decisions in the best interest of the company and
shareholders even if the decision results in them losing their job. We do not,
however, support excessive golden parachutes. Therefore, each proposal will be
decided on a case-by- case basis.
NOTE: CONGRESS HAS IMPOSED A TAX ON ANY PARACHUTE THAT IS MORE THAN THREE TIMES
THE EXECUTIVE'S AVERAGE ANNUAL COMPENSATION.
ANTI-GREENMAIL PROPOSALS
We do not support greenmail. An offer extended to one shareholder should be
extended to all shareholders equally across the board.
LIMIT SHAREHOLDERS' RIGHTS TO CALL SPECIAL MEETINGS
We support the right of shareholders to call a special meeting.
CONSIDERATION OF NONFINANCIAL EFFECTS OF A MERGER
This proposal releases the directors from only looking at the financial effects
of a merger and allows them the opportunity to consider the merger's effects on
employees, the community, and consumers.
As a fiduciary, we are obligated to vote in the best economic interests of our
clients. In general, this proposal does not allow us to do that. Therefore, we
generally cannot support this proposal.
Reviewed on a case-by-case basis.
MERGERS, BUYOUTS, SPIN-OFFS, RESTRUCTURINGS
Each of the above is considered on a case-by-case basis. According to the
Department of Labor, we are not required to vote for a proposal simply because
the offering price is at a premium to the current market price. We may take into
consideration the long term interests of the shareholders.
MILITARY ISSUES
Shareholder proposals regarding military production must be evaluated on a
purely economic set of criteria for our ERISA clients. As such, decisions will
be made on a case-by-case basis.
In voting on this proposal for our non-ERISA clients, we will vote according to
the client's direction when applicable. Where no direction has been given, we
will vote in the best economic interests of our clients. It is not our duty to
impose our social judgment on others.
NORTHERN IRELAND
Shareholder proposals requesting the signing of the MacBride principles for the
purpose of countering the discrimination of Catholics in hiring practices must
be evaluated on a purely economic set of criteria for our ERISA clients. As
such, decisions will be made on a case-by-case basis.
In voting on this proposal for our non-ERISA clients, we will vote according to
client direction when applicable. Where no direction has been given, we will
vote in the best economic interests of our clients. It is not our duty to impose
our social judgment on others.
OPT OUT OF STATE ANTI-TAKEOVER LAW
This shareholder proposal requests that a company opt out of the coverage of the
state's takeover statutes. Example: Delaware law requires that a buyer must
acquire at least 85% of the company's stock before the buyer can exercise
control unless the board approves.
We consider this on a case-by-case basis. Our decision will be based on the
following:
o State of Incorporation
o Management history of responsiveness to shareholders
o Other mitigating factors
POISON PILL
In general, we do not endorse poison pills.
In certain cases where management has a history of being responsive to the needs
of shareholders and the stock is very liquid, we will reconsider this position.
REINCORPORATION
Generally, we support reincorporation for well-defined business reasons. We
oppose reincorporation if proposed solely for the purpose of reincorporating in
a state with more stringent anti-takeover statutes that may negatively impact
the value of the stock.
STOCK OPTION PLANS
Stock option plans are an excellent way to attract, hold and motivate directors
and employees. However, each stock option plan must be evaluated on its own
merits, taking into consideration the following:
o Dilution of voting power or earnings per share by more than 10%
o Kind of stock to be awarded, to whom, when and how much
o Method of payment
o Amount of stock already authorized but not yet issued under existing stock
option plans
SUPERMAJORITY VOTE REQUIREMENTS
Supermajority vote requirements in a company's charter or bylaws require a level
of voting approval in excess of a simple majority of the outstanding shares. In
general, we oppose supermajority-voting requirements. Supermajority requirements
often exceed the average level of shareholder participation. We support
proposals' approvals by a simple majority of the shares voting.
LIMIT SHAREHOLDERS RIGHT TO ACT BY WRITTEN CONSENT
Written consent allows shareholders to initiate and carry on a shareholder
action without having to wait until the next annual meeting or to call a special
meeting. It permits action to be taken by the written consent of the same
percentage of the shares that would be required to effect proposed action at a
shareholder meeting.
Reviewed on a case-by-case basis.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
PORTFOLIO MANAGERS
A portfolio team manages The Gabelli Global Gold, Natural Resources & Income
Trust., (the Trust). The individuals listed below are those who are primarily
responsible for the day-to-day management of the Trust.
Caesar M. P. Bryan serves as the Gold Companies Portfolio Manager for the Trust
and is primarily responsible for the day-to-day management of the Gold Companies
portion of the Trust's portfolio. Mr. Bryan is a Senior Vice President and
Portfolio Manager with GAMCO Asset Management Inc. (a wholly owned subsidiary of
GAMCO Investors, Inc.) since 1994.
Barbara G. Marcin and Joshua W. Fenton are jointly and primarily responsible for
the day-to-day management of the Natural Resources Companies portion of the
Trust's portfolio.
Barbara G. Marcin serves as a Portfolio Manager for the Trust. Ms. Marcin joined
GAMCO Investors, Inc. in 1999 to manage larger capitalization value style
portfolios.
Joshua W. Fenton is currently the Director of Buy-Side Research for GAMCO
Investors, Inc. Mr. Fenton was a Securities Analyst for Gabelli & Company, Inc.
from 2001 through 2002. Prior to joining GAMCO, Mr. Fenton was Director of
Research at Douglas, Noyes & Co., Inc. from 1996 through 2001.
Vincent Hugonnard-Roche serves as a Portfolio Manager for the Trust and is
primarily responsible for the day-to-day management of the covered call portion
of the Trust's portfolio. Mr. Roche joined GAMCO Investors, Inc. in 2000 as
Director of Quantitative Strategies and Head of Risk Management.
MANAGEMENT OF OTHER ACCOUNTS
The table below shows the number of other accounts managed by each Portfolio
Manager and the total assets in each of the following categories: registered
investment companies, other paid investment vehicles and other accounts. For
each category, the table also shows the number of accounts and the total assets
in the accounts with respect to which the advisory fee is based on account
performance.
# of Accounts
Managed with Total Assets with
Total Advisory Fee Advisory Fee
Name of Portfolio # of Accounts Based on Based on
Manager Type of Accounts Managed Total Assets Performance Performance
-------- ---------------- ------- ------------ ----------- -----------
1. Caesar M. P. Bryan Registered Investment 5 $2.4B 1 $1.9B
Companies:
Other Pooled Investment 1 $6.6M 1 $6.6M
Vehicles:
Other Accounts: 5 $45.5M 0 $0
2. Barbara G. Marcin Registered Investment 2 $2.3B 1 $2.2B
Companies:
Other Pooled Investment 0 $0 0 $0
Vehicles:
Other Accounts: 6 $43.4M 0 $0
3. Joshua W. Fenton Registered Investment 1 $43.7M 0 $0
Companies:
Other Pooled Investment 0 $0 0 $0
Vehicles:
Other Accounts: 9 $10.6M 0 $0
4. Vincent Hugonnard-Roche Registered Investment 0 $0 0 $0
Companies:
Other Pooled Investment 2 $35.5M 2 $35.5M
Vehicles:
Other Accounts: 0 $0 0 $0
POTENTIAL CONFLICTS OF INTEREST
As reflected above, the Portfolio Managers manage accounts in addition to the
Trust. Actual or apparent conflicts of interest may arise when a Portfolio
Manager also has day-to-day management responsibilities with respect to one or
more other accounts. These potential conflicts include:
ALLOCATION OF LIMITED TIME AND ATTENTION. As indicated above, the Portfolio
Managers manage multiple accounts. As a result, he/she will not be able to
devote all of their time to the management of the Trust. A Portfolio Manager,
therefore, may not be able to formulate as complete a strategy or identify
equally attractive investment opportunities for each of those accounts, as might
be the case if he/she were to devote all of his/her attention to the management
of only the Trust.
ALLOCATION OF LIMITED INVESTMENT OPPORTUNITIES. As indicated above, the
Portfolio Managers manage accounts with investment strategies and/or policies
that are similar to the Trust. In these cases, if the Portfolio Manager
identifies an investment opportunity that may be suitable for multiple accounts,
the Trust may not be able to take full advantage of that opportunity because the
opportunity may be allocated among all or many of these accounts or other
accounts managed primarily by other Portfolio Managers of the Adviser, and their
affiliates. In addition, in the event a Portfolio Manager determines to purchase
a security for more than one account in an aggregate amount that may influence
the market price of the security, accounts that purchased or sold the security
first may receive a more favorable price than accounts that made subsequent
transactions.
PURSUIT OF DIFFERING STRATEGIES. At times, a Portfolio Manager may determine
that an investment opportunity may be appropriate for only some of the accounts
for which he/she exercises investment responsibility, or may decide that certain
of the funds or accounts should take differing positions with respect to a
particular security. In these cases, the Portfolio Manager may execute differing
or opposite transactions for one or more accounts which may affect the market
price of the security or the execution of the transaction, or both, to the
detriment of one or more other accounts.
VARIATION IN COMPENSATION. A conflict of interest may arise where the financial
or other benefits available to the Portfolio Manager differ among the accounts
that he or she manages. If the structure of the Adviser's management fee or the
Portfolio Manager's compensation differs among accounts (such as where certain
accounts pay higher management fees or performance-based management fees), the
Portfolio Manager may be motivated to favor certain accounts over others. The
Portfolio Manager may also be motivated to favor accounts in which he or she has
an investment interest, or in which the Adviser, or their affiliates have
investment interests. Similarly, the desire to maintain assets under management
or to enhance a Portfolio Manager's performance record or to derive other
rewards, financial or otherwise, could influence the Portfolio Manager in
affording preferential treatment to those accounts that could most significantly
benefit the Portfolio Manager. For example, as reflected above, if a Portfolio
Manager manages accounts, which have performance fee arrangements, certain
portions of their compensation will depend on the achievement of performance
milestones on those accounts. The Portfolio Manager could be incented to afford
preferential treatment to those accounts and thereby by subject to a potential
conflict of interest.
The Adviser, and the Funds have adopted compliance policies and procedures that
are designed to address the various conflicts of interest that may arise for the
Adviser and their staff members. However, there is no guarantee that such
policies and procedures will be able to detect and prevent every situation in
which an actual or potential conflict may arise.
COMPENSATION STRUCTURE FOR THE PORTFOLIO MANAGERS OF THE ADVISER
The compensation of the Portfolio Managers for the Trust is structured to enable
the Adviser to attract and retain highly qualified professionals in a
competitive environment. The Portfolio Managers receive a compensation package
that includes a minimum draw or base salary, equity-based incentive compensation
via awards of stock options, and incentive based variable compensation based on
a percentage of net revenue received by the Adviser for managing the Trust to
the extent that the amount exceeds a minimum level of compensation. Net revenues
are determined by deducting from gross investment management fees certain of the
firm's expenses (other than the Portfolio Managers' compensation) allocable to
the Trust (the incentive-based variable compensation for managing other accounts
is also based on a percentage of net revenues to the investment adviser for
managing the account). This method of compensation is based on the premise that
superior long-term performance in managing a portfolio should be rewarded with
higher compensation as a result of growth of assets through appreciation and net
investment activity. The level of equity-based incentive and incentive-based
variable compensation is based on an evaluation by the Adviser's parent, GBL, of
quantitative and qualitative performance evaluation criteria. This evaluation
takes into account, in a broad sense, the performance of the accounts managed by
the Portfolio Manager, but the level of compensation is not determined with
specific reference to the performance of any account against any specific
benchmark. Generally, greater consideration is given to the performance of
larger accounts and to longer term performance over smaller accounts and
short-term performance.
OWNERSHIP OF SHARES IN THE FUND
None of the Portfolio Managers owned shares of the Trust as of December 31,
2005.
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 YET
SHARES (OR UNITS) (B) AVERAGE PRICE PAID PUBLICLY ANNOUNCED PLANS BE PURCHASED UNDER THE PLANS
PERIOD PURCHASED PER SHARE (OR UNIT) OR PROGRAMS OR PROGRAMS
=============================================================================================================================
=============================================================================================================================
Month #1 Common - N/A Common - N/A Common - N/A Common - 17,655,606
07/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
07/31/05
=============================================================================================================================
=============================================================================================================================
Month #2 Common - N/A Common - N/A Common - N/A Common - 17,702,705
08/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
08/31/05
=============================================================================================================================
=============================================================================================================================
Month #3 Common - N/A Common - N/A Common - N/A Common - 17,702,705
09/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
09/30/05
=============================================================================================================================
=============================================================================================================================
Month #4 Common - N/A Common - N/A Common - N/A Common - 17,745,981
10/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
10/31/05
=============================================================================================================================
=============================================================================================================================
Month #5 Common - N/A Common - N/A Common - N/A Common - 17,745,981
11/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
11/30/05
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=============================================================================================================================
Month #6 Common - N/A Common - N/A Common - N/A Common - 17,745,981
12/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
12/31/05
=============================================================================================================================
=============================================================================================================================
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 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.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Trustees, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
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) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(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
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By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert,
President & Principal Executive Officer
Date March 10, 2006
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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 March 10, 2006
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By (Signature and Title)* /s/ Joseph H. Egan
-------------------------------------------------------
Joseph H. Egan,
Treasurer & Principal Financial Officer
Date March 10, 2006
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* Print the name and title of each signing officer under his or her signature.