UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21698
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The Gabelli Global Gold, Natural Resources & Income Trust
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: December 31, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[LOGO OMITTED]
THE GABELLI
GLOBAL GOLD,
NATURAL RESOURCES
& INCOME TRUST
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
Annual Report
December 31, 2007
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 managers' 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, 2007.
COMPARATIVE RESULTS
-------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH DECEMBER 31, 2007 (A)
----------------------------------------------------
Since
Inception
Quarter 1 Year 2 Year (03/31/05)
------- ------ ------ ----------
GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NAV TOTAL RETURN (B) .................................. 4.01% 31.47% 24.71% 26.15%
INVESTMENT TOTAL RETURN (C) ........................... 5.06 27.40 24.60 23.42
CBOE S&P 500 Buy/Write Index ............................ 2.38 6.59 9.91 8.57
Philadelphia Gold & Silver Index ........................ 2.89 22.90 17.57 26.38
Amex Energy Select Sector Index ......................... 5.95 36.72 27.30 26.75
Lehman Brothers Government/Corporate Bond Index ......... 3.10 7.23 5.49 5.11
(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 A S&P 500 (SPX) CALL OPTION. THE
PHILADELPHIA GOLD & SILVER INDEX IS AN UNMANAGED INDICATOR OF STOCK MARKET
PERFORMANCE OF LARGE NORTH AMERICAN GOLD AND SILVER COMPANIES, WHILE THE
AMEX ENERGY SELECT SECTOR INDEX IS AN UNMANAGED INDICATOR OF STOCK MARKET
PERFORMANCE OF LARGE U.S. COMPANIES INVOLVED IN THE DEVELOPMENT OR
PRODUCTION OF ENERGY PRODUCTS. THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND
INDEX IS AN UNMANAGED MARKET VALUE WEIGHTED INDEX THAT TRACKS THE TOTAL
RETURN PERFORMANCE OF FIXED RATE, PUBLICLY PLACED, DOLLAR DENOMINATED
OBLIGATIONS. DIVIDENDS AND INTEREST INCOME ARE CONSIDERED REINVESTED. YOU
CANNOT INVEST DIRECTLY IN AN INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN THE NET ASSET
VALUE ("NAV") PER SHARE AND REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE
EX-DIVIDEND DATE AND ARE NET OF EXPENSES. SINCE INCEPTION RETURN IS BASED ON
AN INITIAL NAV OF $19.06.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE AMERICAN STOCK EXCHANGE AND REINVESTMENT OF DISTRIBUTIONS.
SINCE INCEPTION RETURN IS BASED ON AN INITIAL OFFERING PRICE OF $20.00.
--------------------------------------------------------------------------------
Sincerely yours,
/s/ Bruce N. Alpert
-------------------
Bruce N. Alpert
President
February 22, 2008
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, 2007:
LONG POSITIONS
Metals and Mining.................................... 60.7%
Energy and Energy Services........................... 37.9%
U.S. Government Obligations.......................... 1.4%
------
100.0%
======
SHORT POSITIONS
Call Options Written................................. (3.3)%
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, 2007.
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, 2007
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 98.6%
ENERGY AND ENERGY SERVICES -- 37.9%
30,000 Baker Hughes Inc. ....................... $ 1,959,300 $ 2,433,000
348,000 BJ Services Co. (a) ..................... 9,671,438 8,442,480
122,000 BP plc, ADR ............................. 8,621,035 8,926,740
54,600 Chevron Corp. ........................... 3,328,250 5,095,818
65,000 ConocoPhillips .......................... 4,066,891 5,739,500
140,000 Devon Energy Corp. (a) .................. 8,193,549 12,447,400
55,000 Diamond Offshore Drilling Inc. .......... 3,422,679 7,810,000
60,000 Exxon Mobil Corp. (a). .................. 3,436,926 5,621,400
247,000 Halliburton Co. (a) ..................... 6,804,974 9,363,770
195,000 Imperial Oil Ltd. ....................... 7,875,178 10,791,732
110,000 Marathon Oil Corp. ...................... 3,230,867 6,694,600
174,000 Murphy Oil Corp. (a).. .................. 8,655,362 14,762,160
220,000 Nabors Industries Ltd.+ ................. 7,110,517 6,025,800
240,000 Noble Corp. (a) ......................... 8,570,294 13,562,400
220,000 Petroleo Brasileiro SA, ADR (a) ......... 10,427,054 25,352,800
150,000 Rowan Companies Inc. (a) ................ 4,521,478 5,919,000
100,000 Royal Dutch Shell plc, Cl. A ............ 4,226,226 4,202,165
150,000 Saipem SpA .............................. 3,412,319 6,015,615
99,800 Sasol Ltd., ADR ......................... 4,923,134 4,937,106
150,000 StatoilHydro ASA, ADR. .................. 4,093,741 4,578,000
152,500 Suncor Energy Inc. (a) .................. 10,773,274 16,581,325
60,000 Technip SA .............................. 4,775,945 4,780,911
117,500 Tesoro Corp. ............................ 3,362,092 5,604,750
83,000 Transocean Inc.+ ........................ 8,277,688 11,881,450
104,800 Valero Energy Corp. (a) ................. 5,377,460 7,339,144
194,000 Weatherford International Ltd.+ (a) ..... 7,690,416 13,308,400
166,400 Williams Companies Inc. (a) ............. 4,115,558 5,953,792
246,250 XTO Energy Inc. (a) ..................... 8,616,703 12,647,400
------------ -------------
169,540,348 246,818,658
------------ -------------
METALS AND MINING -- 60.7%
363,000 Agnico-Eagle Mines Ltd. (a) ............. 7,378,439 19,830,690
160,000 Alcoa Inc. (a) .......................... 5,186,544 5,848,000
212,000 Alpha Natural Resources Inc.+ ........... 3,851,807 6,885,760
85,000 Anglo American plc ...................... 4,726,199 5,211,401
78,000 Anglo Platinum Ltd. ..................... 11,075,081 11,527,636
138,500 AngloGold Ashanti Ltd., ADR ............. 5,574,638 5,929,185
597,061 Aquila Resources Ltd.+ .................. 2,549,574 4,954,146
454,000 Barrick Gold Corp. (a) .................. 14,269,675 19,090,700
170,000 BHP Billiton Ltd., ADR (a) .............. 6,283,353 11,906,800
220,000 Companhia Vale do Rio Doce, ADR ......... 3,603,555 7,187,400
130,000 Compania de Minas Buenaventura SA, ADR .. 7,222,591 7,358,000
2,269,341 Consolidated Minerals Ltd. (b) .......... 4,611,316 9,962,952
640,000 Eldorado Gold Corp.+.. .................. 3,385,626 3,780,536
200,000 Equinox Minerals Ltd.+ .................. 1,037,206 1,106,439
14,100 Eramet .................................. 3,885,790 7,215,229
128,000 Freeport-McMoRan Copper & Gold Inc. ..... 13,963,521 13,112,320
200,000 Gold Fields Ltd. ........................ 3,819,747 2,897,130
1,042,300 Gold Fields Ltd., ADR (a) ............... 16,824,191 14,800,660
369,500 Goldcorp Inc. (a) ....................... 4,224,239 12,537,135
256,400 Harmony Gold Mining Co. Ltd., ADR+ ...... 2,569,495 2,643,484
728,000 Hochschild Mining plc. .................. 5,449,565 6,274,861
342,500 IAMGOLD Corp. ........................... 3,067,632 2,807,462
406,000 Impala Platinum Holdings Ltd. ........... 8,062,716 14,094,025
MARKET
SHARES COST VALUE
------ ---- -----
758,832 Independence Group NL. .................. $ 4,584,962 $ 5,943,315
738,100 Ivanhoe Mines Ltd., New York+ ........... 5,358,513 7,919,813
50,000 Ivanhoe Mines Ltd., New York+ (b) ....... 337,529 536,500
48,000 Ivanhoe Mines Ltd., Toronto+ ............ 340,092 525,255
100,000 Jubilee Mines NL (b).. .................. 1,492,890 1,991,413
850,000 Kagara Ltd. ............................. 4,502,423 4,627,313
100,000 Kazakhmys plc ........................... 3,100,202 2,729,118
349,656 Kingsgate Consolidated Ltd.+ ............ 1,325,683 1,427,619
1,151,900 Kinross Gold Corp.+ (a) ................. 7,713,803 21,194,960
6,483,488 Lihir Gold Ltd.+ ........................ 12,218,692 20,551,057
214,779 Lonmin plc .............................. 14,372,331 13,223,810
100,000 Lundin Mining Corp.+.. .................. 1,048,620 959,000
1,000,000 Minara Resources Ltd.. .................. 5,975,994 5,470,239
744,307 Newcrest Mining Ltd. .................... 10,171,211 21,632,084
359,400 Newmont Mining Corp. (a) ................ 14,026,543 17,549,502
1,545,000 Oxiana Ltd. ............................. 4,470,568 4,720,913
6,580,000 Pan Australian Resources Ltd.+ .......... 3,680,444 5,719,780
567,400 Randgold Resources Ltd., ADR ............ 9,529,023 21,067,562
241,600 Teck Cominco Ltd., Cl. B ................ 9,539,149 8,673,072
70,000 Vedanta Resources plc. .................. 3,018,983 2,850,943
206,156 Xstrata plc ............................. 14,383,135 14,568,311
1,032,000 Yamana Gold Inc., New York (a) .......... 10,949,096 13,354,080
100,000 Yamana Gold Inc., Toronto ............... 892,061 1,306,044
------------ -------------
285,654,447 395,503,654
------------ -------------
TOTAL COMMON STOCKS ..................... 455,194,795 642,322,312
------------ -------------
PRINCIPAL
AMOUNT
------
U.S. GOVERNMENT OBLIGATIONS -- 1.4%
$8,935,000 U.S. Treasury Bills,
2.848% to 3.188%++,
01/03/08 to 03/27/08 (c) ............ 8,887,740 8,884,123
------------ -------------
NUMBER OF EXPIRATION DATE/
CONTRACTS EXERCISE PRICE
--------- --------------
PUT OPTIONS PURCHASED -- 0.0%
600 Foundation Coal Holdings Inc. .......... Mar. 08/45 69,000
-------------
TOTAL PUT OPTIONS
PURCHASED ........................... 134,982 69,000
------------ -------------
TOTAL INVESTMENTS -- 100.0%......... ............... $464,217,517 651,275,435
============
CALL OPTIONS WRITTEN
(Premiums received $25,991,039) ............................... (21,556,736)
OTHER ASSETS AND LIABILITIES (NET)............................... 3,534,082
-------------
PREFERRED STOCK
(4,000,000 preferred shares outstanding) ...................... (100,000,000)
-------------
NET ASSETS -- COMMON STOCK
(18,086,062 common shares outstanding) ........................ $ 533,252,781
=============
NET ASSET VALUE PER COMMON SHARE
($533,252,781 / 18,086,062 shares outstanding) ................ $29.48
======
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2007
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- -------------- -----
OPTION CONTRACTS WRITTEN -- (3.3)%
CALL OPTIONS WRITTEN -- (3.3)%
1,830 Agnico-Eagle Mines Ltd. ................ Jan. 08/50 $ 951,600
1,800 Agnico-Eagle Mines Ltd. ................ Jan. 08/55 378,000
1,600 Alcoa Inc. ............................. Jan. 09/50 180,000
2,120 Alpha Natural Resources Inc. ........... Jan. 08/30 657,200
85 Anglo American plc (d) ................. Jan. 08/85 73,603
1,385 AngloGold Ashanti Ltd., ADR ............ Jan. 08/45 90,025
300 Baker Hughes Inc. ...................... Jan. 08/90 6,000
2,300 Barrick Gold Corp. ..................... Jan. 08/40 828,000
2,242 Barrick Gold Corp. ..................... Jan. 08/45 145,730
1,700 BHP Billiton Ltd., ADR ................. Jan. 08/75 127,500
3,480 BJ Services Co. ........................ Jan. 08/25 174,000
1,200 BJ Services Co. ........................ Feb. 08/25 96,000
1,220 BP plc, ADR ............................ Apr. 08/90 30,500
286 Chevron Corp. .......................... Jan. 08/90 117,260
260 Chevron Corp. .......................... Jan. 08/95 35,100
2,200 Companhia Vale do Rio Doce, ADR ........ Jan. 08/37.50 44,000
1,300 Compania de Minas Buenaventura SA, ADR . Jan. 08/55 416,000
650 ConcoPhillips .......................... Jan. 08/85 295,750
1,400 Devon Energy Corp. ..................... Jan. 08/90 266,000
550 Diamond Offshore Drilling Inc. ......... Jan. 08/140 379,500
3,200 Eldorado Gold Corp. (e) ................ Jan. 08/6 56,740
3,200 Eldorado Gold Corp. (e) ................ Jan. 08/7 17,833
3,200 Eldorado Gold Corp. .................... Feb. 08/6.15 166,400
14,100 Eramet (f).............................. Feb. 08/302.20 1,034,979
600 Exxon Mobil Corp. ...................... Jan. 08/95 87,000
1,300 Freeport-McMoRan Copper & Gold Inc. .... Jan. 08/110 175,500
9,500 Gold Fields Ltd., ADR. ................. Jan. 08/17.50 47,500
2,923 Gold Fields Ltd., ADR. ................. Jan. 08/20 14,615
3,695 Goldcorp Inc. .......................... Jan. 08/35 332,550
2,470 Halliburton Co. ........................ Jan. 08/42.50 24,700
728 Hochschild Mining plc (d) .............. Feb. 08/4.45 217,374
596 IAMGOLD Corp. (e) ...................... Jan. 08/9 4,227
1,329 IAMGOLD Corp. (e) ...................... Feb. 08/9 30,298
1,500 IAMGOLD Corp. (e) ...................... Feb. 08/10 19,758
586 Imperial Oil Ltd. (e). ................. Feb. 08/54 158,828
1,200 Imperial Oil Ltd. (e). ................. Feb. 08/56 206,697
759 Independence Group NL (g) .............. Mar. 08/7.80 966,336
1,361 Ivanhoe Mines Ltd. ..................... Jan. 08/10 159,918
4,000 Ivanhoe Mines Ltd. ..................... Jan. 08/12.50 80,000
3,000 Ivanhoe Mines Ltd. ..................... Mar. 08/12.50 240,000
10,510 Kinross Gold Corp. ..................... Jan. 08/17.50 1,471,400
1,009 Kinross Gold Corp. ..................... Feb. 08/20 75,675
6,000 Lihir Gold Ltd. (g) .................... Apr. 08/4.80 272,518
1,000 Lundin Mining Corp. .................... Mar. 08/10 95,000
1,100 Marathon Oil Corp. ..................... Jan. 08/60 253,000
1,000 Murphy Oil Corp. ....................... Jan. 08/75 1,015,000
740 Murphy Oil Corp. ....................... Jan. 08/80 418,100
2,200 Nabors Industries Ltd. ................. Jan. 08/27.50 148,500
275 Newcrest Mining Corp. (g) .............. Feb. 08/35 310,903
275 Newcrest Mining Corp. (g) .............. Apr. 08/39.24 263,876
2,594 Newmont Mining Corp. ................... Jan. 08/50 298,310
1,000 Newmont Mining Corp. ................... Jan. 08/55 25,000
400 Noble Corp. ............................ Jan. 08/50 284,000
1,600 Noble Corp. ............................ Jan. 08/52.50 736,000
400 Noble Corp. ............................ Jan. 08/55 112,000
6,580 Pan Australian Resources Ltd. (g) ...... Mar. 08/1.08 387,096
1,000 Petroleo Brasileiro SA, ADR ............ Apr. 08/120 1,110,000
NUMBER OF EXPIRATION DATE/ MARKET
CONTRACTS EXERCISE PRICE VALUE
--------- -------------- -----
2,838 Randgold Resources Ltd., ADR ........... Jan. 08/35 $ 780,450
2,836 Randgold Resources Ltd., ADR ........... Mar. 08/35 1,361,280
1,500 Rowan Companies Inc. ................... Jan. 08/40 157,500
150 Saipem SpA (f) ......................... Jan. 08/27 96,879
143 Sasol Ltd., ADR ........................ Feb. 08/50 35,035
357 Sasol Ltd., ADR ........................ Feb. 08/55 28,560
1,500 StatoilHydro ASA, ADR. ................. Jan. 08/35 22,500
600 Suncor Energy Inc. ..................... Jan. 08/110 168,000
225 Suncor Energy Inc. ..................... Feb. 08/115 67,500
700 Suncor Energy Inc. ..................... Mar. 08/125 138,250
1,600 Teck Cominco Ltd., Cl. B (e) ........... Jan. 08/38 64,846
816 Teck Cominco Ltd., Cl. B (e) ........... Jan. 08/40 14,882
1,175 Tesoro Corp. ........................... Jan. 08/50 111,625
100 Transocean Inc. ........................ Jan. 08/150 17,500
80 Transocean Inc. ........................ Jan. 08/155 6,400
650 Transocean Inc. ........................ Feb. 08/140 169,000
1,048 Valero Energy Corp. .................... Jan. 08/65 576,400
1,940 Weatherford International Ltd. ......... Jan. 08/70 339,500
1,300 Williams Companies Inc. ................ Jan. 08/37.50 16,250
364 Williams Companies Inc. ................ Jan. 08/40 1,820
500 XTO Energy Inc. ........................ Jan. 08/65 115,000
1,470 XTO Energy Inc. ........................ Jan. 08/70 36,750
490 XTO Energy Inc. ........................ Feb. 08/55 61,250
3,500 Yamana Gold Inc. ....................... Feb. 08/12.50 420,000
1,752 Yamana Gold Inc. ....................... Apr. 08/15 140,160
------------
TOTAL CALL OPTIONS WRITTEN
(Premiums received $25,991,039) ..................... $ 21,556,736
============
-----------------
(a) Securities, or a portion thereof, with a value of $198,196,310 pledged as
collateral for options written.
(b) At December 31, 2007, the Fund held investments in restricted securities
amounting to $12,490,865 or 1.92% of total investments, which were valued
under methods approved by the Board as follows:
12/31/07
ACQUISITION ACQUISITION ACQUISITION CARRYING VALUE
SHARES ISSUER DATE COST PER UNIT
------ ------ ---- ---- --------
2,269,341 Consolidated Minerals Ltd. .. 01/04/07 $4,611,316 $ 4.3902
50,000 Ivanhoe Mines Ltd., New York 04/25/05 337,529 10.7300
100,000 Jubilee Mines NL............. 10/19/07 1,492,890 19.9141
(c) At December 31, 2007, $1,500,000 of the principal amount was pledged as
collateral for options written.
(d) Exercise price denoted in British pounds.
(e) Exercise price denoted in Canadian dollars.
(f) Exercise price denoted in Euros.
(g) Exercise price denoted in Australian dollars.
+ 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 .................... 47.5% $309,217,662
Europe............................ 15.6 101,644,667
Asia/Pacific...................... 15.2 98,907,630
Latin America..................... 13.0 84,676,250
South Africa...................... 8.7 56,829,226
----- ------------
100.0% $651,275,435
===== ============
SHORT POSITIONS
North America .................... (1.8)% $(12,012,307)
Europe............................ (0.6) (3,617,565)
Latin America..................... (0.5) (3,382,900)
Asia/Pacific...................... (0.4) (2,328,229)
South Africa...................... (0.0) (215,735)
----- ------------
(3.3)% $(21,556,736)
===== ============
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2007
ASSETS:
Investments, at value (cost $464,217,517)..................... $651,275,435
Foreign currency, at value (cost $72,489)..................... 72,994
Cash.......................................................... 77,784
Deposit at broker............................................. 1,458,815
Unrealized appreciation on swap contracts..................... 8,516,188
Dividends receivable.......................................... 457,994
Prepaid expense............................................... 15,467
------------
TOTAL ASSETS.................................................. 661,874,677
------------
LIABILITIES:
Call options written (premiums received $25,991,039) ......... 21,556,736
Payable for investments purchased ............................ 922,754
Distributions payable......................................... 4,631,932
Payable for investment advisory fees.......................... 534,338
Payable for payroll expenses ................................. 75,334
Payable for accounting fees................................... 11,348
Other accrued expenses and liabilities........................ 889,454
------------
TOTAL LIABILITIES............................................. 28,621,896
------------
PREFERRED SHARES:
Series A Cumulative Preferred Shares (6.625%,
$25 liquidation value, $0.001 par value, 4,000,000
shares authorized with 4,000,000 shares issued
and outstanding) ........................................... 100,000,000
------------
NET ASSETS ATTRIBUTABLE TO COMMON SHARES...................... $533,252,781
------------
NET ASSETS CONSIST OF:
Paid-in capital, at $.001 par value........................... $342,341,802
Accumulated distributions in excess of net
investment income .......................................... (2,954,642)
Accumulated distributions in excess of net realized
gain on investments, swap contracts, securities
sold short, written options, and foreign
currency transactions ...................................... (6,145,778)
Net unrealized appreciation on investments.................... 187,057,918
Net unrealized appreciation on swap contracts ................ 8,516,188
Net unrealized appreciation on written options ............... 4,434,303
Net unrealized appreciation on foreign
currency translations ...................................... 2,990
------------
NET ASSETS.................................................... $533,252,781
============
NET ASSET VALUE PER COMMON SHARE:
($533,252,781 / 18,086,062 shares outstanding;
unlimited number of shares authorized) ..................... $29.48
======
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2007
INVESTMENT INCOME:
Dividends (net of foreign taxes of $228,592).................. $ 5,647,067
Interest ..................................................... 915,639
------------
TOTAL INVESTMENT INCOME....................................... 6,562,706
------------
EXPENSES:
Investment advisory fees...................................... 5,037,949
Interest expense.............................................. 598,922
Tax expense................................................... 435,698
Payroll expenses.............................................. 219,858
Shareholder communications expenses........................... 170,233
Custodian fees................................................ 122,484
Legal and audit fees.......................................... 122,462
Trustees' fees ............................................... 74,573
Accounting fees .............................................. 45,000
Shareholder services fees..................................... 11,282
Dividends on securities sold short............................ 10,692
Miscellaneous expenses........................................ 139,251
------------
TOTAL EXPENSES................................................ 6,988,404
Less: Custodian fee credits................................... (4,544)
------------
NET EXPENSES.................................................. 6,983,860
------------
NET INVESTMENT LOSS........................................... (421,154)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, SWAP CONTRACTS, SECURITIES SOLD SHORT,
WRITTEN OPTIONS, AND FOREIGN CURRENCY:
Net realized gain on investments.............................. 56,585,476
Net realized gain on swap contracts........................... 10,039,976
Net realized loss on securities sold short.................... (1,142,451)
Net realized loss on written options.......................... (42,239,070)
Net realized gain on foreign currency transactions ........... 257,354
------------
Net realized gain on investments, swap contracts,
securities sold short, written options, and
foreign currency transactions............................... 23,501,285
------------
Net change in unrealized appreciation/depreciation:
on investments ............................................. 102,774,201
on swap contracts........................................... 7,953,127
on securities sold short.................................... 1,399,484
on written options.......................................... 1,954,588
on foreign currency translations............................ 4,356
------------
Net change in unrealized appreciation/depreciation
on investments, swap contracts, securities sold short,
written options, and foreign currency translations ......... 114,085,756
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SWAP CONTRACTS, SECURITIES SOLD SHORT,
WRITTEN OPTIONS, AND FOREIGN CURRENCY....................... 137,587,041
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................................ 137,165,887
------------
Total Distributions to Preferred Shareholders ................ (1,417,014)
------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON
SHAREHOLDERS RESULTING FROM OPERATIONS ..................... $135,748,873
============
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, 2007 DECEMBER 31, 2006
----------------- -----------------
OPERATIONS:
Net investment income (loss)...................................................... $ (421,154) $ 1,730,970
Net realized gain on investments, swap contracts, securities sold short,
written options, and foreign currency transactions ............................. 23,501,285 37,539,820
Net change in unrealized appreciation/depreciation on investments, swap contracts,
securities sold short, written options, and foreign currency translations ...... 114,085,756 29,500,615
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................. 137,165,887 68,771,405
------------ ------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS:
Net investment income ............................................................ (86,208) --
Net realized short-term gain on investments, swap contracts, securities sold short,
written options and foreign currency transactions .............................. (396,955) --
Net realized long-term gain on investments, swap contracts, securities sold short,
written options and foreign currency transactions .............................. (933,851) --
------------ ------------
TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS .................................... (1,417,014) --
------------ ------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS ...................................................... 135,748,873 68,771,405
------------ ------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ............................................................ (2,705,719) --
Net realized short-term gain on investments, swap contracts, securities sold short,
written options and foreign currency transactions .............................. (17,778,632) --
Net realized long-term gain on investments, swap contracts, securities sold short,
written options and foreign currency transactions .............................. (14,375,712) (31,071,323)
------------ ------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS ....................................... (34,860,063) (31,071,323)
------------ ------------
FUND SHARE TRANSACTIONS:
Net increase in net assets from common shares issued upon reinvestment
of distributions................................................................ 3,173,090 4,831,815
Offering costs for preferred shares charged to paid-in-capital ................... (3,550,000) --
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE TRANSACTIONS ............... (376,910) 4,831,815
------------ ------------
NET INCREASE IN NET ASSETS........................................................ 100,511,900 42,531,897
NET ASSETS:
Beginning of period .............................................................. 432,740,881 390,208,984
------------ ------------
End of period (including undistributed net investment income of $0 and
$1,407,796, respectively) ...................................................... $533,252,781 $432,740,881
============ ============
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION. The Gabelli Global Gold, Natural Resources & Income Trust (the
"Fund") is a non-diversified closed-end management investment company organized
as a Delaware statutory trust on January 4, 2005 and registered under the
Investment Company Act of 1940, as amended (the "1940 Act"). Investment
operations commenced on March 31, 2005.
The Fund's primary investment objective is to provide a high level of
current income. The Fund's secondary investment objective is to seek capital
appreciation consistent with the Fund's strategy and its primary objective.
Under normal market conditions, the Fund will attempt to achieve its objectives
by investing 80% of its assets in equity securities of companies principally
engaged in the gold and natural resources industries. As part of its investment
strategy, the Fund intends to earn income through an option strategy of writing
(selling) covered call options on equity securities in its portfolio. The Fund
anticipates that it will invest at least 25% of its assets in the equity
securities of companies principally engaged in the exploration, mining,
fabrication, processing, distribution, or trading of gold, or the financing,
managing and controlling, or operating of companies engaged in "gold related"
activities ("Gold Companies"). In addition, the Fund anticipates that it will
invest at least 25% of its assets in the equity securities of companies
principally engaged in the exploration, production, or distribution of natural
resources, such as gas and oil, paper, food and agriculture, forestry products,
metals, and minerals as well as related transportation companies and equipment
manufacturers ("Natural Resources Companies"). The Fund may invest in the
securities of companies located anywhere in the world.
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 Gabelli Funds, LLC (the "Adviser").
Portfolio securities primarily traded on a foreign market are generally
valued at the preceding closing values of such securities on the relevant
market, but may be fair valued pursuant to procedures established by the Board
if market conditions change significantly after the close of the foreign market
but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of 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 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.
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
7
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 2007, 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. In addition, at the time an equity swap transaction
reaches its scheduled termination date, there is a risk that the Fund will not
be able to obtain a replacement transaction or that the terms of the replacement
will not be as favorable as on the expiring transaction. If this occurs, it
could have a negative impact on the Fund's ability to make dividend payments.
The use of derivative instruments involves, to varying degrees, elements of
market and counterparty risk in excess of the amount recognized in the Statement
of Assets 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 a periodic payment or termination of swap agreements.
The Fund has entered into equity swap agreements with Morgan Stanley & Co.
Incorporated. Details of the swaps at December 31, 2007 are as follows:
NOTIONAL EQUITY SECURITY INTEREST RATE/ TERMINATION NET UNREALIZED
AMOUNT RECEIVED EQUITY SECURITY PAID DATE APPRECIATION
------ -------- -------------------- ---- ------------
3 Month LIBOR plus
Market Value 45 bps plus Market Value
Appreciation on: Depreciation on:
MMX Mineraco e MMX Mineraco e
$6,536,037 (28,600 Shares) Metalicos SA Metalicos SA 03/06/08 $8,516,188
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. If a call option is exercised, the premium is
added to the proceeds from the sale of the underlying security in determining
whether there has been a realized gain or loss. If a put option is exercised,
the premium reduces the cost basis of the security.
As a purchaser of put options, the Fund pays a premium for the right to sell
to the seller of the put option the underlying security at a specified price.
The seller of the put has the obligation to purchase the underlying security
upon exercise at the exercise price. If the price of the underlying security
declines, the Fund would realize a gain upon sale or exercise. If the price of
the underlying security increases or stays the same, the Fund would realize a
loss upon sale or at expiration date, but only to the extent of the premium
paid.
In the case of call options, these exercise prices are referred to as
"in-the-money", "at-the-money", and "out-of-the-money", respectively. The Fund
may write (a) in-the-money call options when the Adviser expects that the price
of the underlying security will remain stable or decline during the option
period, (b) at-the-money call options when the Adviser expects that the price of
the underlying security will remain stable, decline, or advance moderately
during the option period, and (c) out-of-the-money call options when the Adviser
expects that the premiums received from writing the call option will be greater
than the appreciation in the price of the underlying security above the exercise
price. By writing a call option, the Fund limits its opportunity to profit from
any increase in the market value of the underlying security above the exercise
price of the option. Out-of-the-money, at-the-money, and in-the-money put
options (the reverse of call options as to the relation of exercise price to
market price) may be utilized in the same market environments that such call
options are used in equivalent transactions. Option positions at December 31,
2007 are presented within the Schedule of Investments.
8
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SECURITIES SOLD SHORT. The Fund may enter into short sale transactions.
Short selling involves selling securities that may or may not be owned and, at
times, borrowing the same securities for delivery to the purchaser, with an
obligation to replace such borrowed securities at a later date. The proceeds
received from short sales are recorded as liabilities and the Fund records an
unrealized gain or loss to the extent of the difference between the proceeds
received and the value of an open short position on the day of determination.
The Fund records a realized gain or loss when the short position is closed out.
By entering into a short sale, the Fund bears the market risk of an unfavorable
change in the price of the security sold short. Dividends on short sales are
recorded as an expense by the Fund on the ex-dividend date and interest expense
is recorded on the accrual basis. At December 31, 2007, there were no open
securities sold short.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are
maintained in U.S. dollars. Foreign currencies, investments, and other assets
and liabilities are translated into U.S. dollars at the current exchange rates.
Purchases and sales of investment securities, income, and expenses are
translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign
exchange rates and/or changes in 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 on outstanding balances. 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 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.
Permanent differences were primarily due to recharacterization of distributions
and reclassifications of capital gains on passive foreign investment companies.
These reclassifications have no impact on the NAV of the Fund. For the fiscal
year ended December 31, 2007, reclassifications were made to increase
accumulated distributions in excess of net investment income by $1,149,357 and
to decrease accumulated distributions in excess of net realized gain on
investments, swap contracts, securities sold short, written options, and foreign
currency transactions by $1,665,837 with an offsetting adjustment to paid-in
capital.
9
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Distributions to shareholders of the Fund's 6.625% Series A Cumulative
Preferred Shares are recorded on a daily basis.
The tax character of distributions paid during the fiscal years ended
December 31, 2007 and December 31, 2006 for the Fund was as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2007 DECEMBER 31, 2006
---------------------------- ------------------------
COMMON PREFERRED COMMON PREFERRED
------ --------- ------ ---------
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short-term capital gains) .... $20,148,505 $ 819,009 $25,953,340 $ --
Net long-term capital gains .................. 14,711,558 598,005 5,117,983 --
----------- ---------- ----------- ------
Total distributions paid ..................... $34,860,063 $1,417,014 $31,071,323 $ --
=========== ========== =========== ======
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, 2007, the difference between book basis and tax basis
unrealized appreciation was primarily due to deferral of losses from wash sales
for tax purposes, straddle deferrals, and mark-to-market adjustments on passive
foreign investment companies.
As of December 31, 2007, the components of accumulated earnings (losses) on
a tax basis were as follows:
Net unrealized appreciation on investments,
swap contracts, written options, and
foreign currency translations........... $180,125,283
Undistributed ordinary income
(inclusive of short-term capital gains) 16,859,984
Undistributed long-term gains............. 2,441,900
Other temporary differences*.............. (8,516,188)
------------
Total .................................... $190,910,979
============
----------------
* Other temporary differences are due to mark-to-market adjustments on swap
contracts.
The following summarizes the tax cost of investments, short sales, written
options, and the related unrealized appreciation (depreciation) at December 31,
2007:
GROSS GROSS
COST/ UNREALIZED UNREALIZED NET UNREALIZED
PREMIUMS APPRECIATION DEPRECIATION APPRECIATION
-------- ------------ ------------ ------------
Investments............... $484,103,633 $179,682,086 $(12,510,284) $167,171,802
Written options........... 25,991,039 9,664,698 (5,230,395) 4,434,303
Swap contracts............ -- 8,516,188 -- 8,516,188
------------ ------------ ------------
$197,862,972 $(17,740,679) $180,122,293
============ ============ ============
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" (the "Interpretation") established a
minimum threshold for financial statement recognition of the benefit of
positions taken in filing tax returns (including whether the Fund is taxable in
a particular jurisdiction) and required certain expanded tax disclosures. The
Fund has adopted the Interpretation for all open tax years and it had no impact
on the amounts reported in the 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 including the liquidation value of preferred shares. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Fund's portfolio and oversees the administration of
all aspects of the Fund's business and affairs.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant
to the Advisory Agreement between the Fund and the Adviser. During the fiscal
year ended December 31, 2007, the Fund paid or accrued $45,000 to the Adviser in
connection with the cost of computing the Fund's NAV.
As per the approval of the Board, the Fund compensates officers of the Fund,
who are employed by the Fund and are not employed by the Adviser (although the
officers may receive incentive based variable compensation from affiliates of
the Adviser) and pays an allocated portion of the cost of the Fund's Chief
Compliance Officer. For the fiscal year ended December 31, 2007, the Fund paid
$219,858, which is included in payroll expenses in the Statement of Operations.
The Fund pays each Trustee who is not considered to be an affiliated person
an annual retainer of $3,000 plus $1,000 for each Board meeting attended in
person and $500 per telephonic meeting, and they are reimbursed for any out of
pocket expenses incurred in attending meetings. All Board committee members
receive $500 per committee meeting attended. In addition the Audit Committee
Chairman receives an annual retainer fee of $3,000 and the Nominating Committee
Chairman receives an annual retainer fee of $2,000. Trustees who are directors
or employees of the Adviser or an affiliated company receive no compensation or
expense reimbursement from the Fund.
10
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the fiscal year ended December 31, 2007, other than short-term and U.S.
Government securities, aggregated $456,199,973 and $367,017,607, respectively.
Written options activity for the Fund for the fiscal year ended December 31,
2007 was as follows:
NUMBER OF
CONTRACTS PREMIUMS
--------- --------
Options outstanding at December 31, 2006... 108,400 $14,214,588
Stock splits on options.................... 5,204 --
Options written ........................... 845,149 139,397,868
Options repurchased........................ (558,083) (98,988,135)
Options expired............................ (236,779) (23,950,789)
Options exercised.......................... (11,419) (4,682,493)
------- -----------
Options outstanding at December 31, 2007... 152,472 $25,991,039
======= ===========
5. CAPITAL. The Fund is authorized to issue an unlimited number of common shares
of beneficial interest (par value $0.001). The Board has authorized the
repurchase of its shares in the open market when the shares are trading at a
discount of 7.5% or more (or such other percentage as the Board may determine
from time to time) from the NAV of the shares. During the fiscal year ended
December 31, 2007, the Fund did not repurchase any shares of beneficial interest
in the open market.
The Fund filed a $350 million shelf offering with the SEC that went
effective September 24, 2007. The shelf offering gave the Fund the ability to
offer additional common and preferred shares.
On October 16, 2007, the Fund completed the placement of $100 million of
Cumulative Preferred Shares ("Preferred Shares"). The Preferred Shares are
senior to the common shares and result in the financial leveraging of the common
shares. Such leveraging tends to magnify both the risks and opportunities to
common shareholders. Dividends on the 6.625% Series A Preferred Shares are
cumulative. The Fund is required by the 1940 Act and by the Statement of
Preferences to meet certain asset coverage tests with respect to the Preferred
Shares. If the Fund fails to meet these requirements and does not correct such
failure, the Fund may be required to redeem, in part or in full, the Preferred
Shares at the redemption price of $25 per share plus an amount equal to the
accumulated and unpaid dividends whether or not declared on such shares in order
to meet the requirements. Additionally, failure to meet the foregoing asset
coverage requirements could restrict the Fund's ability to pay dividends to
common shareholders and could lead to sales of portfolio securities at
inopportune times. The income received on the Fund's assets may vary in a manner
unrelated to the fixed rate, which could have either a beneficial or detrimental
impact on net investment income and gains available to common shareholders.
On October 16, 2007, the Fund received net proceeds of $96,450,000 (after
underwriting discounts of $3,150,000 and offering expenses of $400,000) from the
public offering of 4,000,000 shares of 6.625% Series A Cumulative Preferred
Shares. Commencing October 16, 2012, and thereafter, the Fund, at its option,
may redeem the Preferred Shares in whole or in part at the redemption price at
any time. The Board has authorized the repurchase of the Preferred Shares in the
open market at prices less than the $25 liquidation value per share. During the
fiscal year ended December 31, 2007, the Fund did not repurchase any of the
Preferred Shares. At December 31, 2007, 4,000,000 Preferred Shares were
outstanding and accrued dividends amounted to $110,417.
Transactions in common shares of beneficial interest were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2007 DECEMBER 31, 2006
----------------- -----------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
Shares issued upon reinvestment of distributions ..... 127,490 $3,173,090 212,591 $4,831,815
------- ---------- ------- ----------
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 nine 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.
11
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD:
YEAR ENDED YEAR ENDED PERIOD ENDED
DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005(D)
----------------- ----------------- --------------------
OPERATING PERFORMANCE:
Net asset value, beginning of period.............................. $ 24.10 $ 21.99 $ 19.06(e)
-------- -------- --------
Net investment income (loss)...................................... (0.02) 0.08 0.08
Net realized and unrealized gain on investments, swap contracts,
securities sold short, written options, and
foreign currency transactions................................... 7.61 3.77 4.01
-------- -------- --------
Total from investment operations.................................. 7.59 3.85 4.09
-------- -------- --------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS:
Net investment income............................................. (0.01) -- --
Net realized gains on investments, swap contracts,
securities sold short, written options, and foreign
currency transactions........................................... (0.07) -- --
-------- -------- --------
Total distributions to preferred shareholders..................... (0.08) -- --
-------- -------- --------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income............................................. (0.15) -- (0.07)
Net realized gains on investments, swap contracts, securities
sold short, written options, and foreign currency
transactions.................................................... (1.78) (1.74) (1.09)
-------- -------- --------
Total distributions to common shareholders........................ (1.93) (1.74) (1.16)
-------- -------- --------
FUND SHARE TRANSACTIONS:
Increase (decrease) in net asset value from
common share transactions ...................................... 0.00(c) -- (0.00)(c)
Offering costs for preferred shares charged to paid-in capital.... (0.20) -- --
-------- -------- --------
Total fund share transactions..................................... (0.20) -- (0.00)(c)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD.................................... $ 29.48 $ 24.10 $ 21.99
======== ======== ========
NAV total return +................................................ 31.47% 18.29% 22.0%*
======== ======== ========
Market value, end of period....................................... $ 29.15 $ 24.60 $ 21.80
======== ======== ========
Investment total return ++........................................ 27.40% 21.86% 15.2%**
======== ======== ========
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets including liquidation value of preferred shares,
end of period (in 000's) ....................................... $633,253 -- --
Net assets attributable to common shares,
end of period (in 000's) ....................................... $533,253 $432,741 $390,209
Ratio of net investment income (loss) to average net assets
attributable to common shares before preferred shares
distributions................................................... (0.09)% 0.42% 0.47%(f)
Ratio of operating expenses to average net assets
attributable to common shares (a) .............................. 1.45% 1.17%(a) 1.15%(f)
Ratio of operating expenses to average net assets including
liquidation value of preferred shares (a) ...................... 1.39% -- --
Portfolio turnover rate........................................... 71.3% 114.8% 142.5%
PREFERRED SHARES:
6.625% SERIES A CUMULATIVE PREFERRED SHARES
Liquidation value, end of period (in 000's)....................... $100,000 -- --
Total shares outstanding (in 000's)............................... 4,000 -- --
Liquidation preference per share.................................. $ 25.00 -- --
Average market value (b).......................................... $ 24.16 -- --
Asset coverage per share.......................................... $ 158.31 -- --
Asset coverage.................................................... 633% -- --
-----------------
+ Based on net asset value per share, adjusted for reinvestment of
distributions at the net asset value per share on the ex-dividend dates.
Total return for a period of less than one year is not annualized.
++ Based on market value per share, adjusted for reinvestment of distributions
at prices obtained under the Fund's dividend reinvestment plan. Total
return for a period of less than one year is not 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.
(a) The Fund incurred interest expense during the years ended December 31, 2007
and 2006. If interest expense had not been incurred, the ratio of operating
expenses to average net assets attributable to common shares would have
been 1.33% and 1.16%, respectively, and in 2007 the ratio of operating
expenses to average net assets including liquidation value of preferred
shares would have been 1.27%.
(b) Based on weekly prices.
(c) Amount represents less than $0.005 per share.
(d) The Fund commenced investment operations on March 31, 2005.
(e) The beginning of period NAV reflects a $0.04 reduction for costs associated
with the initial public offering.
(f) Annualized.
See accompanying notes to financial statements.
12
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
The Gabelli Global Gold, Natural Resources & Income Trust:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Gabelli Global Gold, Natural
Resources & Income Trust (hereafter referred to as the "Trust") at December 31,
2007, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended 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 Trust'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, 2007 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
March 10, 2008
13
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.
NUMBER OF
TERM OF FUNDS IN FUND
NAME, POSITION(S) OFFICE AND COMPLEX
ADDRESS(1) LENGTH OF OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE TIME 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: 62 Salibello & Broder LLP since 1978
INDEPENDENT TRUSTEES(5):
ANTHONY J. COLAVITA Since 2005* 35 Partner in the law firm of --
Trustee Anthony J. Colavita, P.C.
Age: 72
JAMES P. CONN Since 2005** 16 Former Managing Director and Chief Investment --
Trustee Officer of Financial Security Assurance
Age: 69 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: 67 Parliament (1996-2001)
VINCENT D. ENRIGHT Since 2005*** 15 Former Senior Vice President and Chief --
Trustee Financial Officer of KeySpan Corporation
Age: 64 (public utility) (1994-1998)
FRANK J. FAHRENKOPF, JR. Since 2005* 5 President and Chief Executive Officer of the --
Trustee American Gaming Association; Co-Chairman
Age: 68 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
Trustee Melarkey, Knobel & Mulligan Gas Corporation
Age: 58 (natural gas utility)
ANTHONIE C. VAN EKRIS Since 2005** 19 Chairman of BALMAC International, Inc. --
Trustee (commodities and futures trading)
Age: 73
SALVATORE J. ZIZZA Since 2005* 26 Chairman of Zizza & Co., Ltd. Director of Hollis-Eden
Trustee (consulting) Pharmaceuticals
Age: 62 (biotechnology); Director
of Earl Scheib, Inc.
(automotive services)
14
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)
TERM OF
NAME, POSITION(S) OFFICE AND
ADDRESS(1) LENGTH OF PRINCIPAL OCCUPATION(S)
AND AGE TIME SERVED(2) DURING PAST FIVE YEARS
----------------- -------------- ----------------------
OFFICER:
-------
BRUCE N. ALPERT Since 2005 Executive Vice President and Chief Operating Officer of Gabelli Funds,
President LLC since 1988 and an officer of most of the registered investment
Age: 56 companies in the Gabelli/GAMCO Funds complex. Director and President of
Gabelli Advisers, Inc. since 1998
CARTER W. AUSTIN Since 2005 Vice President of the Fund since 2005; Vice President of The Gabelli
Vice President Equity Trust since 2000, The Gabelli Dividend & Income Trust since 2003,
Age: 41 The Gabelli Global Deal Fund since 2006, and The Gabelli Healthcare &
Wellness(Rx) Trust since 2007; Vice President of Gabelli Funds, LLC since 1996
MOLLY A.F. MARION Since 2005 Assistant Vice President of GAMCO Investors, Inc. since 2006; Assistant
Assistant Vice President Portfolio Manager of Gabelli Fixed Income (1994-2004)
and Ombudsman
Age: 53
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; Secretary of
Age: 44 all of the registered investment companies in the Gabelli/GAMCO Funds complex
AGNES MULLADY Since 2006 Vice President of Gabelli Funds, LLC since 2007; Officer of all of the
Treasurer registered investment companies in the Gabelli/GAMCO Funds complex; Senior
Age: 49 Vice President of U.S. Trust Company, N.A. 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 Compliance Officer Chief Compliance Officer of all of the registered investment companies
Age: 54 in the Gabelli/GAMCO 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 2010 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 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.
15
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
INCOME TAX INFORMATION (UNAUDITED)
DECEMBER 31, 2007
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
01/25/07 01/17/07 $0.14000 $0.14000 $ -- $23.69000
02/22/07 02/13/07 0.14000 0.14000 -- 24.89000
03/26/07 03/16/07 0.14000 0.14000 -- 25.16000
04/04/07 04/16/07 0.14000 0.14000 -- 25.94000
05/24/07 05/16/07 0.14000 0.14000 -- 25.75850
06/25/07 06/15/07 0.14000 0.06270 0.07730 25.80860
07/25/07 07/17/07 0.14000 0.04770 0.09230 27.45530
08/27/07 08/17/07 0.14000 0.04770 0.09230 24.43870
09/24/07 09/14/07 0.14000 0.04770 0.09230 27.82450
10/25/07 10/17/07 0.14000 0.04770 0.09230 29.27690
11/26/07 11/15/07 0.14000 0.04770 0.09230 27.14800
12/17/07 12/12/07 0.14000 0.04770 0.09230 27.36550
01/07/08 12/31/07 0.25000 0.08520 0.16480 29.75870
-------- -------- --------
$1.93000 $1.13410 $0.79590
6.625% PREFERRED SHARES
12/26/07 12/18/07 $0.32665 $0.11138 $0.21527
A Form 1099-DIV has been mailed to all shareholders of record which sets
forth specific amounts to be included in your 2007 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,
2007 were $15,309,563, or the maximum allowable.
CORPORATE DIVIDENDS RECEIVED DEDUCTION, QUALIFIED DIVIDEND INCOME, AND
U.S. GOVERNMENT SECURITIES INCOME
In 2007, the Fund paid to common and 6.625% Series A preferred shareholders
ordinary income dividends of $1.1341 and $0.1114 per share, respectively. For
the fiscal year ended December 31, 2007, 5.51% of the ordinary dividend
qualified for the dividend received deduction available to corporations, and
3.35% 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 2007 derived from U.S. Government Securities
was 0.00%. 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 2007.
The percentage of net assets of U.S. Government Securities held as of December
31, 2007 was 1.40%.
HISTORICAL DISTRIBUTION SUMMARY
SHORT-TERM LONG-TERM
INVESTMENT CAPITAL CAPITAL TOTAL
INCOME (A) GAINS (A) GAINS DISTRIBUTIONS (B)
---------- --------- ----- -----------------
COMMON SHARES
2007.................... $0.14980 $0.98430 $0.79590 $1.93000
2006.................... -- 1.45430 0.28570 1.74000
2005.................... 0.08460 1.07540 -- 1.16000
6.625% PREFERRED SHARES
2007.................... $0.01987 $0.09151 $0.21527 $0.32665
---------------------
(a) Taxable as ordinary income for Federal tax purposes.
(b) Total amounts may differ due to rounding.
16
AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLANS
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Gold, Natural Resources & Income
Trust (the "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 credit 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.
17
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 Automatic 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 on Monday, May 19, 2008 at the Greenwich
Library in Greenwich, Connecticut.
--------------------------------------------------------------------------------
18
[GRAPHIC OMITTED]
PICTURE OF FLAGS
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES OFFICERS
Anthony J. Colavita Bruce N. Alpert
ATTORNEY-AT-LAW, PRESIDENT
ANTHONY J. COLAVITA, P.C.
Carter W. Austin
James P. Conn VICE PRESIDENT
FORMER MANAGING DIRECTOR &
CHIEF INVESTMENT OFFICER, Peter D. Goldstein
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. CHIEF COMPLIANCE OFFICER
Mario d'Urso Molly A.F. Marion
CHAIRMAN, MITTEL CAPITAL MARKETS SPA ASSISTANT VICE PRESIDENT & OMBUDSMAN
Vincent D. Enright James E. McKee
FORMER SENIOR VICE PRESIDENT & SECRETARY
CHIEF FINANCIAL OFFICER,
KEYSPAN CORP. Agnes Mullady
TREASURER
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER, INVESTMENT ADVISER
AMERICAN GAMING ASSOCIATION Gabelli Funds, LLC
One Corporate Center
Michael J. Melarkey Rye, New York 10580-1422
ATTORNEY-AT-LAW,
AVANSINO, MELARKEY, KNOBEL & MULLIGAN CUSTODIAN
Mellon Trust of New England, N.A.
Salvatore M. Salibello
CERTIFIED PUBLIC ACCOUNTANT, COUNSEL
SALIBELLO & BRODER, LLP Skadden, Arps, Slate, Meagher & Flom LLP
Anthonie C. van Ekris TRANSFER AGENT AND REGISTRAR
CHAIRMAN, BALMAC INTERNATIONAL, INC. American Stock Transfer and Trust Company
Salvatore J. Zizza STOCK EXCHANGE LISTING
CHAIRMAN, ZIZZA & CO., LTD. 6.625%
Common Preferred
------ ---------
Amex-Symbol: GGN GGN PrA
Shares Outstanding: 18,086,062 4,000,000
The Net Asset Value per share appears in
the Publicly Traded Funds column, under
the heading "Specialized Equity Funds,"
in Monday's The Wall Street Journal. It
is also listed in Barron's Mutual
Funds/Closed End Funds section under the
heading "Specialized Equity Funds."
The Net Asset Value per share may be
obtained each day by calling (914)
921-5070 or visiting www.gabelli.com.
------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet
homepage at: WWW.GABELLI.COM, or e-mail us at: closedend@gabelli.com
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may, from time to time,
purchase its common shares in the open market when the Fund's shares are
trading at a discount of 7.5% or more from the net asset value of the
shares. The Fund may also, from time to time, purchase shares of its Series
A Cumulative Preferred Shares in the open market when the shares are trading
at a discount to the Liquidation Value of $25.00.
------------------------------------------------------------------------------
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 Q4/2007
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
$45,000 for 2006 and $127,750 for 2007.
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 2006 and $0 for 2007.
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 $3,100 for 2006 and $4,350
for 2007. 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 2006 and $0 for 2007.
(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 zero percent (0%).
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services
to the registrant for each of the last two fiscal years of the
registrant was $0 for 2006 and $0 for 2007.
(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 Teton Advisors, 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
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.
B. 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 will supply information on how
an account voted its proxies upon request.
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 clearing firms are responsible
for forwarding proxies directly to the Advisers.
Proxies are received in one of two forms:
o Shareholder Vote Authorization Forms ("VAFs") - Issued by Broadridge
Financial Solutions, Inc. ("Broadridge") VAFs must be voted through the
issuing institution causing a time lag. Broadridge 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.
Records have been maintained on the Proxy Edge system. The system is backed up
regularly.
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
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 Broadridge are always sent
directly to a specific individual at Broadridge.
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 Broadridge 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 Broadridge:
The back of the VAF is stamped indicating that we wish to vote in person.
The forms are then sent overnight to Broadridge. Broadridge 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 Broadridge 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 auditors.
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 4 $2.6B 1 $2.0B
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 2 $6.3M 2 $6.3M
Investment
Vehicles:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Accounts: 5 $57.0M 0 $0
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
2. Barbara G. Marcin Registered 3 $2.6B 1 $2.5B
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 1 $6.4M 1 $6.4M
Investment
Vehicles:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Accounts: 21 $137.7M 0 $0
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
3. Joshua W. Fenton Registered 2 $78.3M 0 $0
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 0 $0 0 $0
Investment
Vehicles:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Accounts: 11 $15.6M 0 $0
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
4. Vincent Hugonnard-Roche Registered 0 $0 0 $0
Investment
Companies:
------------------------------------- ------------------- ------------------ -------------- ----------------- ----------------
Other Pooled 1 $23.0M 1 $23.0M
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,
2007.
(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 PURCHASED AS PART OF SHARES (OR UNITS) THAT MAY
SHARES (OR UNITS) (B) AVERAGE PRICE PAID PER PUBLICLY ANNOUNCED PLANS YET BE PURCHASED UNDER THE
PERIOD PURCHASED SHARE (OR UNIT) OR PROGRAMS PLANS OR PROGRAMS
============= ========================= ============================= ========================== ===============================
Month #1 Common - N/A Common - N/A Common - N/A Common - 18,086,062
07/01/07
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
07/31/07
============= ========================= ========================== ========================== ===============================
Month #2 Common - N/A Common - N/A Common - N/A Common - 18,086,062
08/01/07
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
08/31/07
============= ========================= ========================== ========================== ===============================
Month #3 Common - N/A Common - N/A Common - N/A Common - 18,086,062
09/01/07
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
09/30/07
============= ========================= ========================== ========================== ===============================
Month #4 Common - N/A Common - N/A Common - N/A Common - 18,086,062
10/01/07
through Preferred Series A - N/A Preferred Series A - N/A Preferred Series A - N/A Preferred Series A - 4,000,000
10/31/07
============= ========================= ========================== ========================== ===============================
Month #5 Common - N/A Common - N/A Common - N/A Common - 18,086,062
11/01/07
through Preferred Series A - N/A Preferred Series A - N/A Preferred Series A - N/A Preferred Series A - 4,000,000
11/30/07
============= ========================= ========================== ========================== ===============================
Month #6 Common - N/A Common - N/A Common - N/A Common - 18,086,062
12/01/07
through Preferred Series A - N/A Preferred Series A - N/A Preferred Series A - N/A Preferred Series A - 4,000,000
12/31/07
============= ========================= ========================== ========================== ===============================
Total Common - N/A Common - N/A Common - N/A N/A
Preferred Series A - N/A Preferred Series A - N/A Preferred Series A - N/A
============= ========================= ========================== ========================== ===============================
Footnote columns (c) and (d) of the table, by disclosing the following
information in the aggregate for all plans or programs publicly announced:
a. The date each plan or program was announced - The notice of the potential
repurchase of common and preferred shares occurs quarterly in the Fund's
quarterly report in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended.
b. The dollar amount (or share or unit amount) approved - Any or all common
shares outstanding may be repurchased when the Fund's common shares are
trading at a discount of 7.5% or more from the net asset value of the
shares. Any or all preferred shares outstanding may be repurchased when
the Fund's preferred shares are trading at a discount to the liquidation
value of $25.00.
c. The expiration date (if any) of each plan or program - The Fund's
repurchase plans are ongoing.
d. Each plan or program that has expired during the period covered by the
table - The Fund's repurchase plans are ongoing.
e. Each plan or program the registrant has determined to terminate prior to
expiration, or under which the registrant does not intend to make further
purchases. - The Fund's repurchase plans are ongoing.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
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 03/10/08
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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 03/10/08
--------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date 03/10/08
--------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.