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
The Gabelli Global Gold, Natural Resources & Income Trust
---------------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
-----------------------------------------
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
-----------------------------------------
(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, 2006
-------------------
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.
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
Annual Report
December 31, 2006
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.
Enclosed are the audited financial statements and the investment portfolio
as of December 31, 2006.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH DECEMBER 31, 2006 (A)
----------------------------------------------------
Since
Inception
Quarter 1 Year (3/31/05)
------- ------ ---------
GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NAV TOTAL RETURN (B) ..................................................... 12.69% 18.29% 23.21%
INVESTMENT TOTAL RETURN (C) .............................................. 12.58 21.86 21.22
CBOE S&P 500 Buy/Write Index ............................................... 3.52 13.33 9.72
Philadelphia Gold & Silver Index ........................................... 11.23 12.58 28.52
Amex Energy Select Sector Index ............................................ 10.27 18.61 21.47
(A) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE.
WHEN SHARES ARE SOLD, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA
PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF THE MOST
RECENT MONTH END. PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES,
RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE CBOE S&P 500
BUY/WRITE INDEX IS AN UNMANAGED BENCHMARK INDEX DESIGNED TO REFLECT THE
RETURN ON A PORTFOLIO THAT CONSISTS OF A LONG POSITION IN THE STOCKS 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. DIVIDENDS ARE CONSIDERED REINVESTED. YOU
CANNOT INVEST DIRECTLY IN AN INDEX.
(B) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NET ASSET
VALUE PER SHARE ("NAV"), REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE
EX-DIVIDEND DATE, AND ARE NET OF EXPENSES. SINCE INCEPTION RETURN IS BASED
ON AN INITIAL NAV OF $19.06.
(C) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE AMERICAN STOCK EXCHANGE AND REINVESTMENT OF DISTRIBUTIONS.
SINCE INCEPTION RETURN IS BASED ON AN INITIAL OFFERING PRICE OF $20.00.
--------------------------------------------------------------------------------
Sincerely yours,
/s/ Bruce N. Alpert
Bruce N. Alpert
President
January 24, 2007
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total
investments as of December 31, 2006:
LONG POSITIONS
Metals and Mining ................................... 57.8%
Energy and Energy Services .......................... 34.2%
U.S. Government Obligations ......................... 7.2%
Diversified Industrial .............................. 0.7%
Put Options Purchased ............................... 0.1%
------
100.0%
======
SHORT POSITIONS
Put Options Written ................................. (0.0)%
Common Stocks Sold Short ............................ (0.8)%
Call Options Written ................................ (2.7)%
------
(3.5)%
======
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST (THE "FUND") FILES A
COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION (THE "SEC") FOR THE FIRST AND THIRD QUARTERS OF EACH FISCAL YEAR ON
FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE QUARTER ENDED SEPTEMBER 30, 2006.
SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT WWW.GABELLI.COM OR BY CALLING THE
FUND AT 800-GABELLI (800-422-3554). THE FUND'S FORM N-Q IS AVAILABLE ON THE
SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND COPIED AT THE SEC'S
PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE OPERATION OF THE
PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING 1-800-SEC-0330.
PROXY VOTING
The Fund files Form N-PX with its complete proxy voting record for the 12
months ended June 30th, no later than August 31st of each year. A description of
the Fund's proxy voting policies, procedures, and how the Fund voted proxies
relating to portfolio securities is available without charge, upon request, by
(i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One
Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at
www.sec.gov.
2
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2006
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 92.7%
DIVERSIFIED INDUSTRIAL -- 0.7%
29,700 Greif Inc., Cl. B ........ $ 1,961,101 $ 3,192,750
------------ ------------
ENERGY AND ENERGY SERVICES -- 34.2%
148,000 BJ Services Co. .......... 4,175,540 4,339,360
71,000 BP plc, ADR .............. 4,763,155 4,764,100
20,000 Chesapeake Energy Corp. .. 574,300 581,000
60,000 Chevron Corp. ............ 3,679,525 4,411,800
65,000 ConocoPhillips (d) ....... 4,066,891 4,676,750
147,000 Devon Energy Corp. (d) ... 8,646,403 9,860,760
55,000 Diamond Offshore Drilling
Inc. ................... 3,422,679 4,396,700
60,000 Exxon Mobil Corp. (d) .... 3,436,926 4,597,800
105,900 GlobalSantaFe Corp. ...... 5,596,790 6,224,802
247,000 Halliburton Co. (d) ...... 6,804,974 7,669,350
55,000 Marathon Oil Corp. ....... 3,230,867 5,087,500
174,000 Murphy Oil Corp. (d) ..... 8,655,362 8,847,900
120,000 Nabors Industries Ltd.+ .. 4,132,517 3,573,600
130,000 Noble Corp. (d) .......... 8,219,034 9,899,500
40,000 Oceaneering International
Inc.+ .................. 1,510,300 1,588,000
68,100 Petroleo Brasileiro SA,
ADR .................... 6,209,214 7,013,619
150,000 Rowan Companies Inc. ..... 4,521,478 4,980,000
180,000 Saipem SpA ............... 4,094,783 4,690,384
115,000 Sasol Ltd., ADR .......... 4,013,415 4,243,500
100,000 Statoil ASA, ADR ......... 2,788,191 2,632,000
130,000 Suncor Energy Inc. ....... 8,335,399 10,258,300
60,000 Tesoro Corp. ............. 3,427,597 3,946,200
65,000 Transocean Inc.+ ......... 3,272,470 5,257,850
105,000 Valero Energy Corp. (d) .. 5,389,104 5,371,800
190,000 Weatherford International
Ltd.+ .................. 6,326,616 7,940,100
153,000 Williams Companies Inc. .. 3,703,476 3,996,360
174,500 XTO Energy Inc. (d) ...... 7,139,578 8,210,225
------------ ------------
130,136,584 149,059,260
------------ ------------
METALS AND MINING -- 57.8%
471,900 Agnico-Eagle Mines Ltd. (d) 8,582,787 19,461,156
37,300 Anglo Platinum Ltd. ...... 4,371,231 4,552,799
120,000 AngloGold Ashanti Ltd.,
ADR .................... 4,724,742 5,650,800
90,000 Arch Coal Inc. ........... 3,500,743 2,702,700
321,800 Barrick Gold Corp. (d) ... 8,735,206 9,879,260
150,000 BHP Billiton Ltd., ADR ... 5,536,261 5,962,500
35,000 Cameco Corp. ............. 1,252,914 1,415,750
130,719 Compania de Minas
Buenaventura SA, ADR ... 3,408,452 3,667,975
400,000 Eldorado Gold Corp.+ ..... 1,951,349 2,164,387
286,000 Freeport-McMoRan Copper
& Gold Inc., Cl. B (d) 13,654,415 15,938,780
140,000 Gold Fields Ltd. ......... 2,877,140 2,649,984
455,700 Gold Fields Ltd., ADR (d) 5,903,202 8,603,616
444,500 Goldcorp Inc. (d) ........ 4,873,099 12,641,580
185,800 Golden Star Resources
Ltd.+ .................. 550,486 548,110
628,200 Harmony Gold Mining Co.
Ltd., ADR+ ............. 8,417,427 9,894,150
25,341 Highland Gold Mining Ltd.+ 119,796 79,388
353,000 Hochschild Mining plc+ ... 2,347,821 2,792,317
342,500 IAMGOLD Corp. ............ 3,067,632 3,030,999
406,000 Impala Platinum Holdings
Ltd. ................... 8,062,716 10,651,838
MARKET
SHARES COST VALUE
------ ---- -----
789,300 Ivanhoe Mines Ltd.,
New York+ .............. $ 5,705,720 $ 7,758,819
48,000 Ivanhoe Mines Ltd.,
Toronto+ ............... 340,092 473,352
30,000 James River Coal Co.+ .... 591,900 278,400
70,000 Jubilee Mines NL ......... 483,278 870,808
349,656 Kingsgate Consolidated
Ltd. ................... 1,325,683 1,159,200
1,081,100 Kinross Gold Corp.+ (d) .. 6,537,117 12,843,468
4,862,616 Lihir Gold Ltd.+ ......... 8,428,290 11,975,469
140,000 Lonmin plc ............... 7,503,765 8,250,936
325,900 Meridian Gold Inc.+ ...... 7,542,038 9,056,761
551,338 Newcrest Mining Ltd. ..... 7,199,856 11,467,441
341,900 Newmont Mining Corp. (d) 13,261,899 15,436,785
60,000 Peabody Energy Corp. ..... 1,740,920 2,424,600
130,000 Phelps Dodge Corp. (d) ... 9,933,373 15,563,600
667,600 Randgold Resources Ltd.,
ADR+ ................... 10,685,286 15,661,896
28,918 Rio Tinto plc, ADR ....... 6,127,919 6,144,786
28,400 Teck Cominco Ltd., Cl. B 1,845,057 2,140,685
92,552 Xstrata plc .............. 4,512,320 4,620,986
192,500 Yamana Gold Inc.,
New York ............... 1,706,089 2,537,150
100,000 Yamana Gold Inc.,
Toronto ................ 892,061 1,312,867
------------ ------------
188,300,082 252,266,098
------------ ------------
TOTAL
COMMON STOCKS ........... 320,397,767 404,518,108
------------ ------------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 7.2%
$31,632,000 U.S. Treasury Bills,
4.845% to 5.105%++,
01/04/07 to 04/26/07 (d) 31,338,461 31,338,337
------------ ------------
NUMBER OF EXPIRATION DATE/
CONTRACTS EXERCISE PRICE
--------- ----------------
PUT OPTIONS PURCHASED -- 0.1%
METALS AND MINING -- 0.1%
750 James River Coal Co. .....Mar. 07/12.50 258,750
------------
TOTAL PUT OPTIONS
PURCHASED ................ 95,250 258,750
------------ ------------
TOTAL INVESTMENTS -- 100.0% ........... $351,831,478 436,115,195
============
SECURITIES SOLD SHORT
(Proceeds received $2,116,996) ................... (3,516,480)
PUT OPTIONS WRITTEN
(Premiums received $174,569) ..................... (190,250)
CALL OPTIONS WRITTEN
(Premiums received $14,040,019) .................. (11,544,623)
OTHER ASSETS AND LIABILITIES (NET) -- 2.7% ......... 11,877,039
------------
NET ASSETS -- COMMON SHARES
(17,958,572 common shares outstanding) ........... $432,740,881
============
NET ASSET VALUE PER COMMON SHARE
($432,740,881 / 17,958,572 shares outstanding) .. $24.10
======
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2006
MARKET
SHARES PROCEEDS VALUE
------ -------- -----
COMMON STOCKS SOLD SHORT -- (0.8)%
DIVERSIFIED INDUSTRIAL -- (0.8)%
(29,700) Greif Inc., Cl. A ........$ (2,116,996) $ (3,516,480)
============ ============
OPTION CONTRACTS WRITTEN -- (2.7)%
NUMBER OF EXPIRATION DATE/
CONTRACTS EXERCISE PRICE
--------- ----------------
PUT OPTIONS WRITTEN -- 0.0%
450 James River Coal Co. .....Mar. 07/12.50 $ 155,250
250 Phelps Dodge Corp. .......Apr. 07/100 35,000
------------
TOTAL PUT OPTIONS WRITTEN
(Premiums received $174,569) $ 190,250
============
CALL OPTIONS WRITTEN -- (2.7)%
3,419 Agnico-Eagle Mines Ltd. ..Jan. 07/40 $ 752,180
400 Agnico-Eagle Mines Ltd. ..Feb. 07/40 132,000
900 Agnico-Eagle Mines Ltd. ..Feb. 07/45 108,000
1,200 AngloGold Ashanti Ltd.,
ADR ....................Jan. 07/45 294,000
300 Arch Coal Inc. ...........Jan. 07/32.50 12,000
600 Arch Coal Inc. ...........Jan. 07/45 3,000
2,718 Barrick Gold Corp. .......Jan. 07/32.50 40,770
500 Barrick Gold Corp. .......Apr. 07/32.50 75,000
750 BHP Billiton Ltd., ADR ...Jan. 07/45 3,750
750 BHP Billiton Ltd., ADR ...Feb. 07/45 24,375
500 BJ Services Co. ..........Jan. 07/32.50 6,250
480 BJ Services Co. ..........Apr. 07/37.50 15,600
500 BJ Services Co. ..........Apr. 07/40 7,500
710 BP plc, ADR ..............Jan. 07/70 10,650
350 Cameco Corp. .............Mar. 07/45 47,250
54 Chevron Corp. ............Jan. 07/75 4,590
546 Chevron Corp. ............Mar. 07/80 43,680
800 Compania de Minas
Buenaventura SA, ADR ...Jan. 07/30 12,000
325 ConocoPhillips ...........Feb. 07/75 50,375
325 ConocoPhillips ...........Feb. 07/80 16,250
250 Devon Energy Corp. .......Jan. 07/70 15,000
250 Devon Energy Corp. .......Jan. 07/75 2,500
700 Devon Energy Corp. .......Jan. 07/80 3,500
270 Devon Energy Corp. .......Apr. 07/75 54,000
100 Diamond Offshore
Drilling Inc. ..........Jan. 07/85 9,500
450 Diamond Offshore
Drilling Inc. ..........Mar. 07/90 82,125
4,000 Eldorado Gold Corp.(a) ...May 07/7 161,214
600 Exxon Mobil Corp. ........Jan. 07/65 739,800
2,860 Freeport-McMoRan Copper
& Gold Inc., Cl. B .....May 07/70 357,500
250 GlobalSantaFe Corp. ......Jan. 07/52.50 168,750
809 GlobalSantaFe Corp. ......Apr. 07/70 113,260
2,000 Gold Fields Ltd., ADR ....Jan. 07/17.50 310,000
2,957 Gold Fields Ltd., ADR ....Jan. 07/20 73,925
1,000 Gold Fields Ltd., ADR ....Jan. 07/22.50 5,000
650 Goldcorp Inc. ............Jan. 07/25 227,500
2,050 Goldcorp Inc. ............Jan. 07/30 82,000
500 Goldcorp Inc. ............Jan. 07/35 645,000
1,245 Goldcorp Inc. ............Apr. 07/32.50 161,850
1,858 Golden Star
Resources Ltd. .........Jan. 07/5 5,574
1,600 Halliburton Co. ..........Jan. 07/32.50 56,000
600 Halliburton Co. ..........Jan. 07/35 9,000
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- ---------------- -----
270 Halliburton Co. ..........Apr. 07/35 $ 27,000
2,350 Harmony Gold Mining
Co. Ltd., ADR ..........Jan. 07/15 246,750
3,932 Harmony Gold Mining
Co. Ltd., ADR ..........Feb. 07/17.50 157,280
1,925 IAMGOLD Corp.(a) .........Jan. 07/11 20,634
1,500 IAMGOLD Corp.(a) .........May 07/12 57,883
2,373 Ivanhoe Mines Ltd. .......Jan. 07/10 83,055
6,000 Ivanhoe Mines Ltd. .......Mar. 07/10 480,000
300 James River Coal Co. .....Mar. 07/12.50 7,500
4,040 Kinross Gold Corp. .......Jan. 07/12.50 60,600
6,500 Kinross Gold Corp. .......Feb. 07/12.50 308,750
271 Kinross Gold Corp. .......Feb. 07/15 2,032
2,900 Lihir Gold Ltd.(c) .......Feb. 07/3.35 274,693
550 Marathon Oil Corp. .......Jan. 07/90 214,500
1,884 Meridian Gold Inc. .......Jan. 07/30 56,520
1,000 Meridian Gold Inc. .......Apr. 07/30 220,000
375 Meridian Gold Inc. .......Apr. 07/35 30,938
1,740 Murphy Oil Corp. .........Jan. 07/55 26,100
1,000 Newmont Mining Corp. .....Feb. 07/47.50 90,000
1,494 Newmont Mining Corp. .....Feb. 07/50 59,760
925 Newmont Mining Corp. .....Mar. 07/47.50 141,063
650 Noble Corp. ..............Jan. 07/75 217,750
650 Noble Corp. ..............Mar. 07/80 256,750
400 Oceaneering International
Inc. ...................Jan. 07/45 4,000
600 Peabody Energy Corp. .....Jan. 07/45 12,000
631 Petroleo Brasileiro SA,
ADR ....................Jan. 07/95 479,560
50 Petroleo Brasileiro SA,
ADR ....................Feb. 07/110 4,750
1,414 Randgold Resources Ltd.,
ADR ....................Jan. 07/22.50 190,890
5,262 Randgold Resources Ltd.,
ADR ....................Mar. 07/25 618,285
50 Rio Tinto plc, ADR .......Jan. 07/210 35,500
295 Rowan Companies Inc. .....Jan. 07/37.50 4,130
425 Rowan Companies Inc. .....Jan. 07/40 4,250
290 Rowan Companies Inc. .....Feb. 07/37.50 14,500
490 Rowan Companies Inc. .....Apr. 07/40 34,300
360 Saipem SpA(b) ............Mar. 07/20 209,071
1,100 Sasol Ltd., ADR ..........Jan. 07/35 269,500
50 Sasol Ltd., ADR ..........Mar. 07/40 5,500
1,000 Statoil ASA, ADR .........Jan. 07/30 10,000
844 Suncor Energy Inc. .......Mar. 07/80 396,680
284 Teck Cominco Ltd., Cl. B Feb. 07/98 34,095
600 Tesoro Corp. .............Feb. 07/75 51,000
250 Transocean Inc. ..........Jan. 07/75 175,000
400 Transocean Inc. ..........Jan. 07/80 120,000
435 Valero Energy Corp. ......Jan. 07/55 10,875
615 Valero Energy Corp. ......Feb. 07/57.50 36,900
1,400 Weatherford International
Ltd. ...................Jan. 07/50 7,000
500 Weatherford International
Ltd. ...................May 07/55 23,750
1,030 Williams Companies Inc. ..Jan. 07/30 5,150
500 Williams Companies Inc. ..Feb. 07/30 7,500
1,245 XTO Energy Inc. ..........Jan. 07/50 43,575
500 XTO Energy Inc. ..........Feb. 07/50 55,000
1,000 Yamana Gold Inc. .........Feb. 07/10 320,000
1,000 Yamana Gold Inc.(a) ......Mar. 07/14 195,086
925 Yamana Gold Inc. .........Apr. 07/12.50 185,000
------------
TOTAL CALL OPTIONS WRITTEN
(Premiums received $14,040,019) ...... $ 11,544,623
============
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2006
------------------
(a) Exercise price denoted in Canadian dollars.
(b) Exercise price denoted in Euros.
(c) Exercise price denoted in Australian dollars.
(d) Securities, or a portion thereof, with a value of $129,802,171 are pledged
as collateral for short sales and options written.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
% OF
MARKET MARKET
VALUE VALUE
----- -----
GEOGRAPHIC DIVERSIFICATION
LONG POSITIONS
North America ................. 60.8% $265,218,852
Europe ........................ 11.4 49,636,793
Latin America ................. 10.0 43,577,446
South Africa .................. 10.6 46,246,687
Asia/Pacific .................. 7.2 31,435,417
----- ------------
100.0% $436,115,195
===== ============
SHORT POSITIONS
North America ................. (2.5)% $(10,948,364)
Latin America ................. (0.4) (1,573,820)
South Africa .................. (0.3) (1,361,955)
Europe ........................ (0.2) (1,064,396)
Asia/Pacific .................. (0.1) (302,818)
----- ------------
(3.5)% $(15,251,353)
===== ============
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2006
ASSETS:
Investments, at value (cost $351,831,478) ............. $436,115,195
Foreign currency, at value (cost $4,955,001) .......... 4,954,549
Cash .................................................. 473,597
Deposit at broker ..................................... 254,573
Receivable for investments sold ....................... 7,787,298
Unrealized appreciation on swap contracts ............. 563,061
Dividends receivable .................................. 290,272
Prepaid expense ....................................... 16,952
------------
TOTAL ASSETS .......................................... 450,455,497
------------
LIABILITIES:
Securities sold short (proceeds received $2,116,996) .. 3,516,480
Put options written
(premiums received $174,569) ........................ 190,250
Call options written
(premiums received $14,040,019) ..................... 11,544,623
Distributions payable ................................. 1,077,514
Payable for investments purchased ..................... 809,748
Payable for investment advisory fees .................. 368,413
Payable for payroll expenses .......................... 32,105
Payable for accounting fees ........................... 7,597
Other accrued expenses and liabilities ................ 167,886
------------
TOTAL LIABILITIES ..................................... 17,714,616
------------
NET ASSETS applicable to 17,958,572
shares outstanding .................................. $432,740,881
============
NET ASSETS CONSIST OF:
Paid-in capital, at $.001 par value ................... $343,235,192
Accumulated net investment income ..................... 1,407,796
Accumulated net realized gain on investments,
swap contracts, securities sold short, written
options, and foreign currency transactions .......... 2,172,250
Net unrealized appreciation on investments ............ 84,283,717
Net unrealized appreciation on swap contracts ......... 563,061
Net unrealized depreciation on securities sold short .. (1,399,484)
Net unrealized appreciation on written options ........ 2,479,715
Net unrealized depreciation on foreign
currency translations ............................... (1,366)
------------
NET ASSETS ............................................ $432,740,881
============
NET ASSET VALUE PER COMMON SHARE:
($432,740,881 / 17,958,572 shares outstanding;
unlimited number of shares authorized) ................ $24.10
======
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2006
INVESTMENT INCOME:
Dividends (net of foreign taxes of $95,198) ........... $ 4,884,968
Interest .............................................. 1,626,514
-----------
TOTAL INVESTMENT INCOME ............................... 6,511,482
-----------
EXPENSES:
Investment advisory fees .............................. 4,089,604
Shareholder communications expenses ................... 162,562
Payroll expenses ...................................... 150,822
Trustees' fees ........................................ 71,703
Interest expense ...................................... 59,801
Legal and audit fees .................................. 57,637
Custodian fees ........................................ 53,684
Accounting fees ....................................... 45,000
Shareholder services fees ............................. 15,078
Miscellaneous expenses ................................ 82,858
-----------
TOTAL EXPENSES ........................................ 4,788,749
Less: Custodian fee credits ........................... (8,237)
-----------
NET EXPENSES .......................................... 4,780,512
-----------
NET INVESTMENT INCOME ................................. 1,730,970
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SWAP CONTRACTS, SECURITIES SOLD SHORT,
WRITTEN OPTIONS, AND FOREIGN CURRENCY:
Net realized gain on investments ...................... 44,398,578
Net realized loss on swap contracts ................... (38,116)
Net realized gain on securities sold short ............ 686,057
Net realized loss on written options .................. (7,341,641)
Net realized loss on foreign currency transactions .... (165,058)
-----------
Net realized gain on investments, swap contracts,
written options, securities sold short, and
foreign currency transactions ........................ 37,539,820
-----------
Net change in unrealized appreciation/depreciation:
on investments ....................................... 15,059,966
on swap contracts .................................... 563,061
on securities sold short ............................. (1,399,484)
on written options ................................... 15,237,988
on foreign currency translations ..................... 39,084
-----------
Net change in unrealized appreciation/depreciation
on investments, swap contracts, written options,
securities sold short, and foreign currency
translations ........................................ 29,500,615
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SWAP CONTRACTS, SECURITIES SOLD
SHORT, WRITTEN OPTIONS, AND FOREIGN CURRENCY ........ 67,040,435
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $68,771,405
===========
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED PERIOD ENDED
DECEMBER 31, 2006 DECEMBER 31, 2005 (A)
----------------- ---------------------
OPERATIONS:
Net investment income ...................................................................$ 1,730,970 $ 1,253,495
Net realized gain on investments, swap contracts, securities sold short, written options,
and foreign currency transactions ..................................................... 37,539,820 14,653,127
Net change in unrealized appreciation/depreciation on investments, swap contracts,
securities sold short, written options, and foreign currency translations ............. 29,500,615 56,425,028
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................................... 68,771,405 72,331,650
------------ ------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ................................................................... -- (1,321,765)
Net realized gain on investments, swap contracts, securities sold short,
written options, and foreign currency transactions .................................... (31,071,323) (19,204,278)
------------ ------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS .............................................. (31,071,323) (20,526,043)
------------ ------------
FUND SHARE TRANSACTIONS:
Net increase in net assets from common shares issued upon reinvestment of distributions
and common shares issued in offering .................................................. 4,831,815 339,007,369
Offering costs for common shares charged to paid-in-capital ............................. -- (704,000)
------------ ------------
NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS ................................. 4,831,815 338,303,369
------------ ------------
NET INCREASE IN NET ASSETS .............................................................. 42,531,897 390,108,976
NET ASSETS:
Beginning of period ..................................................................... 390,208,984 100,008
------------ ------------
End of period (including undistributed net investment income of $1,407,796
and $14,473, respectively) ............................................................$432,740,881 $390,208,984
============ ============
-----------------------
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 31, 2005.
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION. The Gabelli Global Gold, Natural Resources & Income Trust (the
"Fund") is a non-diversified closed-end management investment company organized
as a Delaware statutory trust on January 4, 2005 and registered under the
Investment Company Act of 1940, as amended (the "1940 Act"). The Fund sold 5,236
shares to Gabelli Funds, LLC (the "Adviser") for $100,008 on March 10, 2005.
Investment operations commenced on March 31, 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 Fund 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' over allotment option. The Adviser agreed
to pay all the Fund's organizational costs and the amount by which the Fund's
offering costs (other than the underwriting fees) exceed $0.04 per common share.
The Fund's primary investment objective is to provide a high level of
current income. The Fund's secondary investment objective is to seek capital
appreciation consistent with the Fund's strategy and its primary objective.
Under normal market conditions, the Fund will attempt to achieve its objectives
by investing 80% of its assets in equity securities of companies principally
engaged in the gold and natural resources industries. As part of its investment
strategy, the Fund intends to earn income through an option strategy of writing
(selling) covered call options on equity securities in its portfolio. The Fund
anticipates that it will invest at least 25% of its assets in the equity
securities of companies principally engaged in the exploration, mining,
fabrication, processing, distribution, or trading of gold, or the financing,
managing and controlling, or operating of companies engaged in "gold-related"
activities ("Gold Companies"). In addition, the Fund anticipates that it will
invest at least 25% of its assets in the equity securities of companies
principally engaged in the exploration, production, or distribution of natural
resources, such as gas and oil, paper, food and agriculture, forestry products,
metals, and minerals as well as related transportation companies and equipment
manufacturers ("Natural Resources Companies"). The Fund may invest in the
securities of companies located anywhere in the world.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with United States ("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 Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall determine in good faith to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by the Adviser.
Portfolio securities primarily traded on a foreign market are generally
valued at the preceding closing values of such securities on the relevant
market, but may be fair valued pursuant to procedures established by the Board
if market conditions change significantly after the close of the foreign market
but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of 60 days or less that are not
credit impaired are valued at amortized cost, unless the Board determines such
amount does not reflect the securities' fair value, in which case these
securities will be fair valued as determined by the Board. Debt instruments
having a maturity greater than 60 days for which market quotations are readily
available are valued at the average of the latest bid and asked prices. If there
were no asked prices quoted on such day, the security is valued using the
closing bid price. 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 fair valued as determined by the Board. Fair valuation methodologies and
procedures may include, but are not limited to: analysis and review of available
financial and non-financial information about the company; comparisons to the
valuation and changes in valuation of similar securities, including a comparison
of foreign securities to the equivalent U.S. dollar value American Depository
Receipt ("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.
In September 2006, the Financial Accounting Standards Board (the "FASB")
issued Statement of Financial Accounting Standards ("SFAS") 157, Fair Value
Measurements, which clarifies the definition of fair value and requires
companies to expand their disclosure about the use of fair value to measure
assets and liabilities in interim and annual periods subsequent to initial
recognition. Adoption of SFAS 157 requires the use of the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. SFAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. At this time,
management is in the process of reviewing the requirements of SFAS 157 against
its current valuation policies to determine future applicability.
8
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System, or with other brokers or
dealers that meet credit guidelines established by the Adviser and reviewed by
the Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited. At December
31, 2006, there were no open repurchase agreements.
SWAP AGREEMENTS. The Fund may enter into equity swap transactions. The use
of equity swaps is a highly specialized activity that involves investment
techniques and risks different from those associated with ordinary portfolio
security transactions. In an equity swap, a set of future cash flows are
exchanged between two counterparties. One of these cash flow streams will
typically be based on a reference interest rate combined with the performance of
a notional value of shares of a stock. The other will be based on the
performance of the shares of a stock. There is no assurance that the swap
contract counterparties will be able to meet their obligations pursuant to the
swap contracts, or that, in the event of default, the Fund will succeed in
pursuing contractual remedies. The Fund thus assumes the risk that it may be
delayed in or prevented from obtaining payments owed to it pursuant to the swap
contracts. The creditworthiness of the swap contract counterparties is closely
monitored in order to minimize the risk. Depending on the general state of
short-term interest rates and the returns of the Fund's portfolio securities at
that point in time, such a default could negatively affect the Fund's ability to
make dividend payments for the common shares. In addition, at the time an equity
swap transaction reaches its scheduled termination date, there is a risk that
the Fund will not be able to obtain a replacement transaction or that the terms
of the replacement will not be as favorable as on the expiring transaction. If
this occurs, it could have a negative impact on the Fund's ability to make
dividend payments on the common shares.
The use of derivative instruments involves, to varying degrees, elements of
market and counterparty risk in excess of the amount recognized in the Statement
of Asset and Liabilities.
Unrealized gains related to swaps are reported as an asset and unrealized
losses are reported as a liability in the Statement of Assets and Liabilities.
The change in value of swaps, including the accrual of periodic amounts of
interest to be paid or received on swaps is reported as unrealized gains or
losses in the Statement of Operations. A realized gain or loss is recorded upon
payment or receipt of periodic payment or termination of swap agreements.
The Fund has entered into equity swap agreements with Morgan Stanley.
Details of the swaps at December 31, 2006 are as follows:
NOTIONAL EQUITY SECURITY INTEREST RATE/ TERMINATION UNREALIZED
AMOUNT RECEIVED EQUITY SECURITY PAID DATE APPRECIATION
--------- --------------- -------------------- ----------- ------------
$1,874,467 (5,000 Shares) Market Value 3 Month LIBOR 08/06/07 $263,135
1,838,006 (5,000 Shares) Appreciation plus 45 bps plus 08/06/07 299,926
on MMX Market Value
Mineraco e Depreciation on
Metalicos SA MMX Mineraco e
Metalicos SA
--------
Net Unrealized Appreciation $563,061
========
OPTIONS. The Fund may purchase or write call or put options on securities
or indices. As a writer of put options, the Fund receives a premium at the
outset and then bears the risk of unfavorable changes in the price of the
financial instrument underlying the option. The Fund would incur a loss if the
price of the underlying financial instrument decreases between the date the
option is written and the date on which the option is terminated. The Fund would
realize a gain, to the extent of the premium, if the price of the financial
instrument increases between those dates.
As a purchaser of put options, the Fund pays a premium for the right to
sell to the seller of the put option the underlying security at a specified
price. The seller of the put has the obligation to purchase the underlying
security upon exercise at the exercise price. If the price of the underlying
security declines, the Fund would realize a gain upon sale or exercise. If the
price of the underlying security increases or stays the same, the Fund would
realize a loss upon sale or at expiration date, but only to the extent of the
premium paid.
9
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In the case of call options, these exercise prices are referred to as
"in-the-money", "at-the-money", and "out-of-the-money", respectively. The Fund
may write (a) in-the-money call options when the Adviser expects that the price
of the underlying security will remain stable or decline 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 Fund limits its opportunity to
profit from any increase in the market value of the underlying security above
the exercise price of the option. Out-of-the-money, at-the-money, and
in-the-money put options (the reverse of call options as to the relation of
exercise price to market price) may be utilized in the same market environments
that such call options are used in equivalent transactions.
SECURITIES SOLD SHORT. The Fund may enter into short sale transactions.
Short selling involves selling securities that may or may not be owned and, at
times, borrowing the same securities for delivery to the purchaser, with an
obligation to replace such borrowed securities at a later date. The proceeds
received from short sales are recorded as liabilities and the Fund records an
unrealized gain or loss to the extent of the difference between the proceeds
received and the value of an open short position on the day of determination.
The Fund records a realized gain or loss when the short position is closed out.
By entering into a short sale, the Fund bears the market risk of an unfavorable
change in the price of the security sold short. Dividends on short sales are
recorded as an expense by the Fund on the ex-dividend date and interest expense
is recorded on the accrual basis. Securities sold short at December 31, 2006 are
reported within the Schedule of Investments.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are
maintained in U.S. dollars. Foreign currencies, investments, and other assets
and liabilities are translated into U.S. dollars at the current exchange rates.
Purchases and sales of investment securities, income, and expenses are
translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign
exchange rates and/or changes in market prices of securities have been included
in unrealized appreciation/depreciation on investments and foreign currency
translations. Net realized foreign currency gains and losses resulting from
changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions, foreign
currency transactions, and the difference between the amounts of interest and
dividends recorded on the books of the Fund and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial trade date and subsequent sale trade date is
included in realized gain/(loss) on investments.
FOREIGN SECURITIES. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the 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 Fund may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be recoverable.
The Fund will accrue such taxes and recoveries as applicable, based upon its
current interpretation of tax rules and regulations that exist in the markets in
which it invests.
CONCENTRATION RISKS. The Fund may invest a high percentage of its assets in
specific sectors of the market in order to achieve a potentially greater
investment return. As a result, the Fund may be more susceptible to economic,
political, and regulatory developments in a particular sector of the market,
positive or negative, and may experience increased volatility to the Fund's NAV
and a magnified effect in its total return.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded on the accrual
basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the
ex-dividend date except for certain dividends which are recorded as soon as the
Fund is informed of the dividend.
CUSTODIAN FEE CREDITS AND INTEREST EXPENSE. When cash balances are
maintained in the custody account, the Fund receives credits which are used to
offset custodian fees. The gross expenses paid under the custody arrangement are
included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as "custodian fee credits". When cash balances are
overdrawn, the Fund is charged an overdraft fee equal to 110% of the 90 day
Treasury Bill rate. This amount, if any, would be shown as "interest expense" in
the Statement of Operations.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders are recorded
on the ex-dividend date. Distributions to shareholders are based on income and
capital gains as determined in accordance with Federal income tax regulations,
which may differ from income and capital gains as determined under U.S.
generally accepted accounting principles. These differences are primarily due to
differing
10
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
treatments of income and gains on various investment securities and foreign
currency transactions held by the Fund, timing differences, and differing
characterizations of distributions made by the Fund. Distributions from net
investment income include net realized gains on foreign currency transactions.
These book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, adjustments are made to the appropriate
capital accounts in the period when the differences arise. These
reclassifications have no impact on the NAV of the Fund. For the fiscal year
ended December 31, 2006 reclassifications were made to decrease accumulated net
investment income by $337,647 and to increase accumulated net realized gain on
investments by $337,647.
The tax character of distributions paid during the fiscal year ended
December 31, 2006 were estimated to be $25,953,340 of ordinary income (inclusive
of short-term capital gains), and $5,117,983 of long-term capital gains. The tax
character of distributions paid during the fiscal year ended December 31, 2005
was $20,526,043 of ordinary income (inclusive of short-term capital gains).
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the policy of the Fund to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for Federal income taxes is required.
At December 31, 2006, the difference between book basis and tax basis
unrealized appreciation was primarily due to deferral of losses from wash sales
for tax purposes.
As of December 31, 2006, the components of accumulated earnings/(losses)
on a tax basis were as follows:
Net unrealized appreciation on investments, swap
contracts, securities sold short, written options,
and foreign payables and receivables ............ $83,005,641
Net unrealized depreciation on foreign currency ... (1,366)
Undistributed ordinary income
(inclusive of short-term capital gain) .......... 4,797,946
Undistributed long-term gain ...................... 1,772,474
Other temporary differences ....................... (69,006)
-----------
Total ............................................. $89,505,689
===========
The following summarizes the tax cost of investments, short sales, written
options, and the related unrealized appreciation/ (depreciation) at December 31,
2006:
COST/ GROSS GROSS NET UNREALIZED
PREMIUMS/ UNREALIZED UNREALIZED APPRECIATION/
PROCEEDS APPRECIATION DEPRECIATION (DEPRECIATION)
-------- ------------ ------------ --------------
Investments ............. $354,786,445 $86,605,947 $(5,277,197) $81,328,750
Short sales ............. 2,116,996 -- (1,399,484) (1,399,484)
Written options ......... 14,214,588 4,719,539 (2,239,824) 2,479,715
Swap contracts .......... -- 596,660 -- 596,660
----------- ----------- -----------
$91,922,146 $(8,916,505) $83,005,641
=========== =========== ===========
In July 2006, the FASB issued Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109" ("the
Interpretation"). The Interpretation establishes for all entities, including
pass-through entities such as the Fund, a minimum threshold for financial
statement recognition of the benefit of positions taken in filing tax returns
(including whether an entity is taxable in a particular jurisdiction), and
requires certain expanded tax disclosures. The Interpretation is required to be
implemented for the Fund no later than June 29, 2007, and is to be applied to
all open tax years as of the date of effectiveness. Management has begun to
evaluate the application of the Interpretation to the Fund, and is not in a
position at this time to estimate the significance of its impact, if any, on the
Fund's financial statements.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Fund has entered into an
investment advisory agreement (the "Advisory Agreement") with the Adviser which
provides that the Fund will pay the Adviser a fee, computed weekly and paid
monthly, equal on an annual basis to 1.00% of the value of the Fund's average
weekly net assets. In accordance with the Advisory Agreement, the Adviser
provides a continuous investment program for the Fund's portfolio and oversees
the administration of all aspects of the Fund's business and affairs.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant
to the Advisory Agreement between the Fund and the Adviser. During the year
ended December 31, 2006, the Fund paid or accrued $45,000 to the Adviser in
connection with the cost of computing the Fund's NAV.
The Fund is assuming its portion of the allocated cost of the Gabelli
Funds' Chief Compliance Officer in the amount of $7,940 for the year ended
December 31, 2006, which is included in payroll expenses in the Statement of
Operations.
11
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund pays each Trustee that is not considered to be an affiliated
person an annual retainer of $3,000 plus $1,000 for each Board meeting attended
and they are reimbursed for any out of pocket expenses incurred in attending
meetings. All Board committee members receive $500 per committee meeting
attended. Trustees who are directors or employees of the Adviser or an
affiliated company receive no compensation or expense reimbursement from the
Fund.
4. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the fiscal year ended December 31, 2006, other than short-term and U.S.
Government securities, aggregated $462,844,753 and $479,032,013, respectively.
Written options activity for the Fund for the fiscal year ended December
31, 2006 was as follows:
NUMBER OF
CONTRACTS PREMIUMS
---------- -----------
Written options outstanding at December 31, 2005 114,275 $ 14,725,899
Stock splits on options ........................ 3,087 --
Options written ................................ 801,136 82,390,830
Options repurchased ............................ (502,974) (51,414,675)
Options expired ................................ (212,828) (21,783,030)
Options exercised .............................. (94,296) (9,704,436)
-------- ------------
Written options outstanding at December 31, 2006 108,400 $ 14,214,588
======== ============
5. CAPITAL. The Fund is authorized to issue an unlimited number of common shares
of beneficial interest (par value $0.001). The Board has authorized the
repurchase of its shares in the open market when the shares are trading at a
discount of 7.50% or more (or such other percentage as the Board may determine
from time to time) from the NAV of the shares. During the year ended December
31, 2006, the Fund did not repurchase any shares of beneficial interest in the
open market.
Transactions in shares of beneficial interest were as follows:
YEAR ENDED PERIOD ENDED
DECEMBER 31, 2006 DECEMBER 31, 2005 (A)
--------------------- ---------------------
SHARES AMOUNT 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 distributions .. 212,591 $4,831,815 140,745 2,847,369
------- ---------- ---------- ------------
Net increase ...................................... 212,591 $4,831,815 17,745,981 $338,403,377
======= ========== ========== ============
-----------------------
(a) The Gabelli Global Gold, Natural Resources & Income Trust commenced
investment operations on March 31, 2005.
6. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of
indemnifications. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
7. OTHER MATTERS. The Adviser and/or affiliates received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund share trading practices involving certain funds managed by the
Adviser. GAMCO Investors, Inc. ("GAMCO"), the Adviser's parent company,
responded to these requests for documents and testimony. In June 2006, GAMCO
began discussions with the SEC regarding a possible resolution of their inquiry.
In February 2007, the Adviser made an offer of settlement to the staff of the
SEC for communication to the Commission for its consideration to resolve this
matter. This offer of settlement is subject to agreement regarding the specific
language of the SEC's administrative order and other settlement documents. 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 Fund or any material adverse effect on the Adviser or its ability
to manage the Fund. The staff's notice to the Adviser did not relate to the
Fund.
12
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT
EACH PERIOD:
YEAR ENDED PERIOD ENDED
DECEMBER 31, 2006 DECEMBER 31, 2005 (B)
----------------- ---------------------
OPERATING PERFORMANCE:
Net asset value, beginning of period ................................................... $ 21.99 $ 19.06(c)
-------- --------
Net investment income .................................................................. 0.08 0.08
Net realized and unrealized gain on investments, swap contracts, securities sold short,
written options, and foreign currency transactions ................................... 3.77 4.01
-------- --------
Total from investment operations ....................................................... 3.85 4.09
-------- --------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income .................................................................. -- (0.07)
Net realized gains on investments, swap contracts, securities sold short,
written options, and foreign currency transactions ................................... (1.74) (1.09)
-------- --------
Total distributions to common shareholders ............................................. (1.74) (1.16)
-------- --------
FUND SHARE TRANSACTIONS:
Decrease in net asset value from common share transactions ............................. -- (0.00)(d)
-------- --------
Total fund share transactions .......................................................... -- (0.00)(d)
-------- --------
NET ASSET VALUE, END OF PERIOD ......................................................... $ 24.10 $ 21.99
======== ========
NAV total return + ..................................................................... 18.29% 22.0%*
======== ========
Market value, end of period ............................................................ $ 24.60 $ 21.80
======== ========
Investment total return ++ ............................................................. 21.86% 15.2%**
======== ========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets end of period (in 000's) .................................................... $432,741 $390,209
Ratio of net investment income to average net assets ................................... 0.42% 0.47%(e)
Ratio of operating expenses to average net assets (a) .................................. 1.17% 1.15%(e)
Portfolio turnover rate ................................................................ 114.8% 142.5%
------------------
+ Based on net asset value per share, adjusted for reinvestment of
distributions at the net asset value per share on the ex-dividend dates.
Total return for the period of less than one year is not annualized.
++ Based on market value per share, adjusted for reinvestment of distributions
at prices obtained under the Fund's dividend reinvestment plan. Total return
for the period of less than one year is not annualized.
(a) The Fund incurred interest expense during the year ended December 31, 2006.
If interest expense had not been incurred, the ratio of operating expenses
to average net assets would have been 1.16%.
(b) The Fund commenced investment operations on March 31, 2005.
(c) The beginning of period NAV reflects a $0.04 reduction for costs associated
with the initial public offering.
(d) Amount represents less than $0.005 per share.
(e) Annualized.
* Based on net asset value per share at commencement of operations of $19.06
per share.
** Based on market value per share at initial public offering of $20.00 per
share.
See accompanying notes to financial statements.
13
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 "Fund") at December 31,
2006, the results of its operations for the year then ended and the changes in
its net assets and the financial highlights for each of the periods presented,
in conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits 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 audits, which included confirmation of securities at
December 31, 2006 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
March 9, 2007
14
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ADDITIONAL FUND INFORMATION (UNAUDITED)
The business and affairs of the Fund are managed under the direction of
the Fund's Board of Trustees. Information pertaining to the Trustees and
officers of the Fund is set forth below. The Fund's Statement of Additional
Information includes additional information about the Fund's Trustees and is
available, without charge, upon request, by calling 800-GABELLI (800-422-3554)
or by writing to The Gabelli Global Gold Natural Resources & Income Trust at One
Corporate Center, Rye, NY 10580-1422.
TERM OF NUMBER OF
OFFICE AND FUNDS IN FUND
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 public accounting firm
Age: 61 Salibello & Broder LLP, since 1978
INDEPENDENT TRUSTEES 5:
----------------------
ANTHONY J. COLAVITA Since 2005* 34 Partner in the law firm of --
Trustee Anthony J. Colavita, P.C.
Age: 71
JAMES P. CONN Since 2005** 15 Former Managing Director and Chief Director of First Republic Bank
Trustee Investment Officer of Financial (banking)
Age: 68 Security Assurance Holdings Ltd.
(insurance holding company)
(1992-1998)
MARIO D'URSO Since 2005*** 4 Chairman of Mittel Capital Markets S.p.A. --
Trustee since 2001; Senator in the Italian
Age: 66 Parliament (1996-2001)
VINCENT D. ENRIGHT Since 2005*** 13 Former Senior Vice President and Chief --
Trustee Financial Officer of KeySpan Energy
Age: 63 Corporation (public utility) (1994-1998)
FRANK J. FAHRENKOPF, JR. Since 2005* 5 President and Chief Executive Officer of Director of First Republic Bank
Trustee the American Gaming Association; (banking)
Age: 67 Co-Chairman of the Commission on
Presidential Debates; Former Chairman
of the Republican National Committee
(1983-1989)
MICHAEL J. MELARKEY Since 2005*** 4 Partner in the law firm of Avansino, Director of Southwest Gas
Trustee Melarkey, Knobel & Mulligan Corporation (natural gas utility)
Age: 57
ANTHONIE C. VAN EKRIS Since 2005** 17 Chairman of BALMAC International, Inc. --
Trustee (commodities and futures trading)
Age: 72
SALVATORE J. ZIZZA Since 2005* 25 Chairman of Hallmark Electrical Director of Hollis-Eden
Trustee Supplies Corp. (distributor of Pharmaceuticals (biotechnology)
Age: 61 electrical supplies) and Earl Scheib, Inc.
(automotive supplies)
15
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 Officer of Gabelli Funds, LLC
President since 1988 and an officer of all of the registered investment companies in
Age: 55 the Gabelli Funds complex. Director and President of Gabelli Advisers, Inc.
since 1998
CARTER W. AUSTIN Since 2005 Vice President of The Gabelli Equity Trust since 2000, The Gabelli Dividend
Vice President & Income Trust since 2003, and The Gabelli Global Deal Fund since 2006;
Age: 40 Vice President of Gabelli Funds, LLC since 1996
MOLLY A.F. MARION Since 2005 Assistant Vice President of GAMCO Investors, Inc. since 2006;
Assistant Vice President Assistant Portfolio Manager of Gabelli Fixed Income from 1994-2004
and Ombudsman
Age: 52
JAMES E. MCKEE Since 2005 Vice President, General Counsel and Secretary of GAMCO Investors, Inc.
Secretary (since 1999) and of GAMCO Asset Management Inc. (since 1993);
Age: 43 Secretary of all of the registered investment companies in the
Gabelli Funds complex
AGNES MULLADY Since 2006 Treasurer of all of the registered investment companies in the
Treasurer Gabelli Funds complex; Senior Vice President of U.S. Trust Company, N.A.
Age: 48 and Treasurer and Chief Financial Officer of Excelsior Funds from 2004 through
2005; Chief Financial Officer of AMIC Distribution Partners from 2002 through
2004; Controller of Reserve Management Corporation and Reserve Partners, Inc.
and Treasurer of Reserve Funds from 2000 through 2002
PETER D. GOLDSTEIN Since 2005 Director of Regulatory Affairs at GAMCO Investors, Inc. since 2004; Chief
Chief Compliance Officer Compliance Officer of all of the registered investment companies in the
Age: 53 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 Fund'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 Fund's 2008 Annual Meeting of Shareholders or
until their successors are duly elected and qualified.
** - Term expires at the Fund's 2009 Annual Meeting of Shareholders or
until their successors are duly elected and qualified.
*** - Term expires at the Fund's 2007 Annual Meeting of Shareholders or
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 "Interested person" of the Fund as defined in the 1940 Act. 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.
4 This column includes only directorships of companies required to report to the
SEC under the Securities Exchange Act of 1934, as amended (i.e.
public companies) or other investment companies registered under the 1940 Act.
5 Trustees who are not interested persons are considered "Independent" Trustees.
16
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
INCOME TAX INFORMATION (UNAUDITED)
DECEMBER 31, 2006
CASH DIVIDENDS AND DISTRIBUTIONS
TOTAL AMOUNT ORDINARY LONG-TERM DIVIDEND
PAYABLE RECORD PAID INVESTMENT CAPITAL REINVESTMENT
DATE DATE PER SHARE (A) INCOME (A) GAINS (A) PRICE
-------- --------- ------------- ------------ ----------- -------------
COMMON SHARES
01/25/06 01/17/06 $0.14000 $0.13430 $0.00570 $22.80000
02/22/06 02/13/06 0.14000 0.14000 0.00000 22.42000
03/27/06 03/17/06 0.14000 0.14000 0.00000 22.56990
04/24/06 04/13/06 0.14000 0.14000 0.00000 22.75630
05/24/06 05/16/06 0.14000 0.14000 0.00000 22.17370
06/26/06 06/16/06 0.14000 0.14000 0.00000 21.67390
07/25/06 07/17/06 0.14000 0.14000 0.00000 21.71610
08/25/06 08/17/06 0.14000 0.14000 0.00000 22.66020
09/25/06 09/15/06 0.14000 0.14000 0.00000 21.19000
10/25/06 10/17/06 0.14000 0.14000 0.00000 23.01660
11/24/06 11/15/06 0.14000 0.00000 0.14000 23.76000
12/18/06 12/13/06 0.14000 0.00000 0.14000 24.04000
01/08/07 12/29/06 0.06000 0.06000 0.00000 22.97000
-------- -------- --------
$1.74000 $1.45430 $0.28570
A Form 1099-DIV has been mailed to all shareholders of record which sets
forth specific amounts to be included in your 2006 tax returns. Ordinary income
distributions include net investment income and realized net short-term capital
gains. Ordinary income is reported in box 1a of Form 1099-DIV. Capital gain
distributions are reported in box 2a of Form 1099-DIV.
The long-term gain distributions for the fiscal year ended December 31,
2006 were $5,117,983.
CORPORATE DIVIDENDS RECEIVED DEDUCTION, QUALIFIED DIVIDEND INCOME, AND U.S.
GOVERNMENT SECURITIES INCOME
The Fund paid to common shareholders an ordinary income dividend of
$1.45430 per share in 2006. For the fiscal year ended December 31, 2006, 10.26%
of the ordinary dividend qualified for the dividend received deduction available
to corporations, and 1.50% 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 Fund during 2006 derived
from U.S. Government Securities was 13.46%. 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 Fund did not meet this
strict requirement in 2006. The percentage of U.S. Government Securities held as
of December 31, 2006 was 7.24%.
HISTORICAL DISTRIBUTION SUMMARY
COMMON SHARES
SHORT-TERM LONG-TERM
INVESTMENT CAPITAL CAPITAL TOTAL
INCOME (B) GAINS (B) GAINS DISTRIBUTIONS (A)
---------- --------- ----- -----------------
2006 ................ -- $1.45430 $0.28570 $1.74000
2005 ................ $0.08460 1.07540 -- 1.16000
--------------------------
(a) Total amounts may differ due to rounding.
(b) Taxable as ordinary income for Federal tax purposes.
17
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Gold, Natural Resources & Income
Trust ("Fund") to automatically reinvest dividends payable to common
shareholders. As a "registered" shareholder you automatically become a
participant in the Fund's Automatic Dividend Reinvestment Plan (the "Plan"). The
Plan authorizes the Fund to issue common shares to participants upon an income
dividend or a capital gains distribution regardless of whether the shares are
trading at a discount or a premium to net asset value. All distributions to
shareholders whose shares are registered in their own names will be
automatically reinvested pursuant to the Plan in additional shares of the Fund.
Plan participants may send their share certificates to American Stock Transfer
("AST") to be held in their dividend reinvestment account. Registered
shareholders wishing to receive their distributions in cash must submit this
request in writing to:
The Gabelli Global Gold, Natural Resources & Income Trust
c/o American Stock Transfer
6201 15th Avenue
Brooklyn, NY 11219
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan or requesting a copy of the terms of the
Plan may contact AST at (888) 422-3262.
If your shares are held in the name of a broker, bank, or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your distributions will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of common shares distributed to participants in the Plan in
lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Fund's common shares is equal to or exceeds net
asset value at the time shares are valued for purposes of determining the number
of shares equivalent to the cash dividends or capital gains distribution,
participants are issued common shares valued at the greater of (i) the net asset
value as most recently determined or (ii) 95% of the then current market price
of the Fund's common shares. The valuation date is the dividend or distribution
payment date or, if that date is not an American Stock Exchange ("Amex") trading
day, the next trading day. If the net asset value of the common shares at the
time of valuation exceeds the market price of the common shares, participants
will receive common shares from the Fund valued at market price. If the Fund
should declare a dividend or capital gains distribution payable only in cash,
AST will buy common shares in the open market, or on the Amex, or elsewhere, for
the participants' accounts, except that AST will endeavor to terminate purchases
in the open market and cause the Fund to issue shares at net asset value if,
following the commencement of such purchases, the market value of the common
shares exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders
to increase their investment in the Fund. In order to participate in the
Voluntary Cash Purchase Plan, shareholders must have their shares registered in
their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to AST for investments in the Fund's common shares at
the then current market price. Shareholders may send an amount from $250 to
$10,000. AST will use these funds to purchase shares in the open market on or
about the 1st and 15th of each month. AST will charge each shareholder who
participates a pro rata share of the brokerage commissions. Brokerage charges
for such purchases are expected to be less than the usual brokerage charge for
such transactions. It is suggested that any voluntary cash payments be sent to
American Stock Transfer, 6201 15th Avenue, Brooklyn, NY 11219 such that AST
receives such payments approximately 10 days before the investment date. Funds
not received at least five days before the investment date shall be held for
investment until the next purchase date. A payment may be withdrawn without
charge if notice is received by AST at least 48 hours before such payment is to
be invested.
SHAREHOLDERS WISHING TO LIQUIDATE SHARES HELD AT AST must do so in writing or
by telephone. Please submit your request to the above mentioned address or
telephone number. Include in your request your name, address, and account
number. The cost to liquidate shares is $1.00 per transaction as well as the
brokerage commission incurred. Brokerage charges are expected to be less than
the usual brokerage charge for such transactions.
For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Fund.
The Fund reserves the right to amend or terminate the Plan as applied to any
voluntary cash payments made and any dividend or distribution paid subsequent to
written notice of the change sent to the members of the Plan at least 90 days
before the record date for such dividend or distribution. The Plan also may be
amended or terminated by AST on at least 90 days' written notice to participants
in the Plan.
--------------------------------------------------------------------------------
The Annual Meeting of The Gabelli Global Gold, Natural Resources & Income
Trust's shareholders will be held at 12:30 P.M. on Monday, May 14, 2007 at the
Greenwich Library in Greenwich, Connecticut.
--------------------------------------------------------------------------------
18
[LOGO OMITTED]
FLAGS
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES
Anthony J. Colavita OFFICERS
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C. Bruce N. Alpert
PRESIDENT
James P. Conn
FORMER CHIEF INVESTMENT OFFICER, Carter W.Austin
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. VICE PRESIDENT
Mario d'Urso Peter D. Goldstein
CHAIRMAN, MITTEL CAPITAL MARKETS SPA CHIEF COMPLIANCE OFFICER
Vincent D. Enright Molly A.F. Marion
FORMER SENIOR VICE PRESIDENT & ASSISTANT VICE PRESIDENT AND OMBUDSMAN
CHIEF FINANCIAL OFFICER,
KEYSPAN ENERGY CORP. James E. McKee
SECRETARY
Frank J. Fahrenkopf,Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER, Agnes Mullady
AMERICAN GAMING ASSOCIATION TREASURER
Michael J. Melarkey INVESTMENT ADVISER
ATTORNEY-AT-LAW, Gabelli Funds, LLC
AVANSINO, MELARKEY, KNOBEL & MULLIGAN One Corporate Center
Rye, New York 10580-1422
Salvatore M.Salibello
CERTIFIED PUBLIC ACCOUNTANT, CUSTODIAN
SALIBELLO & BRODER LLP Mellon Trust of New England, N.A.
Anthonie C. van Ekris COUNSEL
CHAIRMAN, BALMAC INTERNATIONAL, INC. Skadden, Arps, Slate, Meagher & Flom LLP
Salvatore J. Zizza TRANSFER AGENT AND REGISTRAR
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP. American Stock Transfer and Trust Company
STOCK EXCHANGE LISTING
Common
------
Amex - Symbol: GGN
Shares Outstanding: 17,958,572
The Net Asset Value per share appears in
the Publicly Traded Funds column, under
the heading "Specialized Equity Funds," in
Monday's The Wall Street Journal. It
is also listed in Barron's Mutual Funds/
Closed End Funds section under the
heading "Specialized Equity Funds."
The Net Asset Value per share may be obtained
each day by calling (914) 921-5070.
-------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM or e-mail us at: closedend@gabelli.com
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may, from time to time, purchase
its common shares in the open market when the Fund's shares are trading at a
discount of 7.5% or more from the net asset value of the shares.
--------------------------------------------------------------------------------
THE GABELLI GLOBAL GOLD,
NATURAL RESOURCES & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
PHONE: 800-GABELLI (800-422-3554)
FAX: 914-921-5118 INTERNET: WWW.GABELLI.COM
E-MAIL: CLOSEDEND@GABELLI.COM
GGN Q4/2006
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 for 2005 and $45,500 for 2006.
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 for 2005 and $0 for 2006.
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 for 2005 and
$3,100 for 2006. Tax fees represent tax compliance services provided in
connection with the review of the Registrant's tax returns.
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
for 2005 and $0 for 2006.
(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
registered public accounting firm to the registrant and (ii) all
permissible non-audit services to be provided by the independent
registered public accounting firm 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 registered public accounting firm's 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
permissible non-audit services were not recognized by the registrant at
the time of the engagement to be non-audit services; and (ii) 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) Not applicable
(c) 100%
(d) Not applicable
(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 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 for 2005 and $0 for 2006.
(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 attending 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 Fund). The individuals listed below are those who are primarily
responsible for the day-to-day management of the Fund.
Caesar M. P. Bryan serves as the Gold Companies Portfolio Manager for the Fund
and is primarily responsible for the day-to-day management of the Gold Companies
portion of the Fund'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
Fund's portfolio.
Barbara G. Marcin serves as a Portfolio Manager for the Fund. 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 Fund and is
primarily responsible for the day-to-day management of the covered call portion
of the Fund'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.
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Total Assets
No. of Accounts in Accounts
Total where Advisory where Advisory
Name of Portfolio Manager or No. of Accounts Fee is Based on Fee is Based
Team Member Type of Accounts Managed Total Assets Performance on Performance
---------------------------- ---------------- --------------- ------------ ------------- --------------
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
1. Caesar M. P. Bryan Registered 5 $2.9B 1 $2.2B
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 1 $4.0M 1 $4.0M
Investment
Vehicles:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Accounts: 5 $50.5M 0 $0
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
2. Barbara G. Marcin Registered 2 $2.5B 1 $2.5B
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 0 $0 0 $0
Investment
Vehicles:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Accounts: 21 $138.0M 0 $0
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
3. Joshua W. Fenton Registered 2 $48.4M 0 $0
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 5 $2.6M 5 $2.6M
Investment
Vehicles:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Accounts: 13 $16.0M 0 $0
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
4. Vincent Hugonnard-Roche Registered 0 $0 0 $0
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 1 $21.0M 1 $21.0M
Investment
Vehicles:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Accounts: 0 $0 0 $0
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
POTENTIAL CONFLICTS OF INTEREST
As reflected above, the Portfolio Managers manage accounts in addition to the
Fund. 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 Fund. 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 Fund.
ALLOCATION OF LIMITED INVESTMENT OPPORTUNITIES. As indicated above, the
Portfolio Managers manage accounts with investment strategies and/or policies
that are similar to the Fund. In these cases, if the Portfolio Manager
identifies an investment opportunity that may be suitable for multiple accounts,
the Fund 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 Fund 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 Fund 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 Fund (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
Caesar M. P. Bryan, Barbara G. Marcin, Joshua W. Fenton and Vincent
Hugonnard-Roche owned $10,001 - $50,000; $50,001 - $100,000; $10,001 - $50,000
and $10,001 - $50,000 respectively, of shares of the Trust as of December 31,
2006.
(B) Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
=============================================================================================================================
(C) TOTAL NUMBER OF (D) MAXIMUM NUMBER (OR
SHARES (OR UNITS) APPROXIMATE DOLLAR VALUE) OF
(A) TOTAL NUMBER OF (B) AVERAGE PRICE PURCHASED AS PART OF SHARES (OR UNITS) THAT MAY YET
SHARES (OR UNITS) 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 - 17,851,705
07/01/06 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
through
07/31/06
=============================================================================================================================
=============================================================================================================================
Month #2 Common - N/A Common - N/A Common - N/A Common - 17,851,705
08/01/06 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
through
08/31/06
=============================================================================================================================
Month #3 Common - N/A Common - N/A Common - N/A Common - 17,885,587
09/01/06 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
through
09/30/06
=============================================================================================================================
Month #4 Common - N/A Common - N/A Common - N/A Common - 17,901,872
10/01/06 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
through
10/31/06
=============================================================================================================================
Month #5 Common - N/A Common - N/A Common - N/A Common - 17,930,505
11/01/06 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
through
11/30/06
=============================================================================================================================
Month #6 Common - N/A Common - N/A Common - N/A Common - 17,958,572
12/01/06 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
through
12/31/06
=============================================================================================================================
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 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) 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
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 03/01/2007
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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, Principal Executive Officer
Date 03/01/2007
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By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date 03/01/2007
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* Print the name and title of each signing officer under his or her signature.