nvcsrs
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 811-21529
The Gabelli Global Utility & Income Trust
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrants telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: June 30, 2009
Form N-CSR is to be used by management investment companies to file reports with the Commission not
later than 10 days after the transmission to stockholders of any report that is required to be
transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR
270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission
will make this information public. A registrant is not required to respond to the collection of
information contained in Form N-CSR unless the Form displays a currently valid Office of Management
and Budget (OMB) control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the burden to Secretary,
Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed
this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
The Gabelli Global Utility & Income Trust
Semi-Annual Report
June 30, 2009
To Our Shareholders,
The Gabelli Global Utility & Income Trusts (the Fund) net asset value (NAV) total return
declined 1.5% during the first half of 2009, compared with a decline of 1.7% for the Standard &
Poors (S&P) 500 Utilities Index and an increase of 0.3% for the Lipper Utility Fund Average. The
total return for the Funds publicly traded shares was 6.9% during the first half of the year. On
June 30, 2009, the Funds NAV per share was $17.59, while the price of the publicly traded shares
closed at $16.34 on the NYSE Amex.
Enclosed are the financial statements and the investment portfolio as of June 30, 2009.
Comparative Results
Average
Annual Returns through June 30, 2009 (a)
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Since |
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Year to |
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Inception |
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Quarter |
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Date |
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1 Year |
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3 Year |
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5 Year |
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(05/28/04) |
Gabelli Global Utility & Income Trust |
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NAV Total Return (b) |
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12.83 |
% |
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(1.45 |
)% |
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(18.46 |
)% |
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(0.69 |
)% |
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4.46 |
% |
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4.53 |
% |
Investment Total Return (c) |
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24.51 |
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6.94 |
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(15.14 |
) |
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3.00 |
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4.46 |
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2.79 |
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S&P 500 Index |
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15.92 |
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3.19 |
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(26.20 |
) |
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(8.22 |
) |
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(2.24 |
) |
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(1.83 |
) |
S&P 500 Utilities Index |
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10.18 |
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(1.71 |
) |
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(28.22 |
) |
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(1.18 |
) |
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7.12 |
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7.31 |
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Lipper Utility Fund Average |
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13.25 |
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0.27 |
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(30.78 |
) |
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(2.36 |
) |
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5.91 |
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6.23 |
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(a) |
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Returns represent past performance and do not guarantee future results. Investment returns and
the principal value of an investment will fluctuate. When shares are sold, they may be worth more
or less than their original cost. Current performance may be lower or higher than the performance
data presented. Visit www.gabelli.com for performance information as of the most recent month end.
Performance returns for periods of less than one year are not annualized. Investors should
carefully consider the investment objectives, risks, charges, and expenses of the Fund before
investing. The S&P 500 Index is an unmanaged indicator of stock market performance. The S&P 500
Utilities Index is an unmanaged indicator of electric and gas utility stock performance.
The Lipper Utility Fund Average reflects the average performance of open-end mutual funds
classified in this particular category. Dividends are considered reinvested. You cannot invest
directly in an index. |
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(b) |
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Total returns and average annual returns reflect changes in the NAV per share and reinvestment
of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is
based on an initial NAV of $19.06. |
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(c) |
|
Total returns and average annual returns reflect changes in closing market values on the NYSE
Amex and reinvestment of distributions. Since inception return is based on an initial offering
price of $20.00. |
We have separated the portfolio managers commentary from the financial statements and investment
portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We
have done this to ensure that the content of the portfolio managers commentary is unrestricted.
The financial statements and investment portfolio are mailed separately from the commentary. Both
the commentary and the financial statements, including the portfolio of investments, will be
available on our website at www.gabelli.com/funds.
THE GABELLI GLOBAL UTILITY & INCOME TRUST
Summary of Portfolio Holdings (Unaudited)
The following table presents portfolio holdings as a percent of total investments as of June 30,
2009:
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Energy and Utilities: Integrated |
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46.3 |
% |
Telecommunications |
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12.4 |
% |
Cable and Satellite |
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6.5 |
% |
Energy and Utilities: Electric Transmission
and Distribution |
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5.7 |
% |
U.S. Government Obligations |
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5.2 |
% |
Energy and Utilities: Natural Gas Integrated |
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4.7 |
% |
Energy and Utilities: Natural Gas Utilities |
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4.0 |
% |
Energy and Utilities: Oil |
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3.8 |
% |
Energy and Utilities: Water |
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3.5 |
% |
Wireless Communications |
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2.0 |
% |
Aerospace |
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1.0 |
% |
Diversified Industrial |
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1.0 |
% |
Environmental Services |
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0.7 |
% |
Energy and Utilities: Alternative Energy |
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0.6 |
% |
Independent Power Producers and
Energy Traders |
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0.6 |
% |
Entertainment |
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0.5 |
% |
Real Estate |
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0.4 |
% |
Energy and Utilities: Services |
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0.4 |
% |
Metals and Mining |
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0.3 |
% |
Transportation |
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0.2 |
% |
Building and Construction |
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0.1 |
% |
Business Services |
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0.1 |
% |
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100.0 |
% |
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The Fund files a complete schedule of portfolio holdings with the Securities and Exchange
Commission (the SEC) for the first and third quarters of each fiscal year on Form N-Q, the last
of which was filed for the quarter ended March 31, 2009. Shareholders may obtain this information
at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Funds Form N-Q is
available on the SECs website at www.sec.gov and may also be reviewed and copied at the SECs
Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
Proxy Voting
The Fund files Form N-PX with its complete proxy voting record for the twelve months ended
June 30th, no later than August 31st of each year. A description of the Funds 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 SECs website at
www.sec.gov.
Shareholder
Meeting May 18, 2009 Final Results
The Funds Annual Meeting of Shareholders was held on May 18, 2009 at the Greenwich Library in
Greenwich, Connecticut. At that meeting, common shareholders elected James P. Conn and Salvatore M.
Salibello as Trustees of the Fund. A total of 2,834,848 votes and 2,838,146 votes were cast in
favor of each Trustee and a total of 80,198 votes and 76,901 votes were withheld for each Trustee,
respectively.
Anthony J. Colavita, Mario dUrso, Vincent D. Enright, Michael J. Melarkey, and Salvatore J.
Zizza continue to serve in their capacities as Trustees of the Fund.
We thank you for your participation and appreciate your continued support.
2
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS
June 30, 2009 (Unaudited)
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Market |
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Shares |
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Cost |
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Value |
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COMMON STOCKS 94.3% |
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ENERGY AND UTILITIES 71.3% |
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Energy and Utilities: Alternative Energy 0.6% |
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U.S. Companies |
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8,000 |
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Ormat Technologies Inc. |
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$ |
261,346 |
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$ |
322,480 |
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Energy and Utilities: Electric Transmission and Distribution 5.7% |
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Non U.S. Companies |
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8,775 |
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National Grid plc, ADR |
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401,681 |
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396,893 |
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3,300 |
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Red Electrica
Corporacion SA |
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157,539 |
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149,114 |
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U.S. Companies |
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4,000 |
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CH Energy Group Inc. |
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178,779 |
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186,800 |
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2,000 |
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Consolidated Edison Inc. |
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86,603 |
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74,840 |
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5,000 |
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Northeast Utilities |
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90,818 |
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111,550 |
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48,000 |
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NSTAR |
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1,140,134 |
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1,541,280 |
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40,000 |
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Pepco Holdings Inc. |
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757,783 |
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537,600 |
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|
1,666 |
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UIL Holdings Corp. |
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53,364 |
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37,402 |
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2,866,701 |
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3,035,479 |
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Energy and Utilities: Integrated 46.3% |
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Non U.S. Companies |
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150,000 |
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A2A SpA |
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276,010 |
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273,347 |
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600 |
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Areva SA |
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247,698 |
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349,767 |
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9,000 |
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Chubu Electric
Power Co. Inc. |
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190,737 |
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208,336 |
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152,000 |
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Datang International Power
Generation Co. Ltd.,
Cl. H |
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59,610 |
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92,572 |
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2,700 |
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E.ON AG |
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177,041 |
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95,526 |
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9,000 |
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E.ON AG, ADR |
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209,576 |
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318,788 |
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10,000 |
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Electric Power Development
Co. Ltd. |
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252,321 |
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284,424 |
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8,000 |
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Endesa SA |
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205,461 |
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191,462 |
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68,400 |
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Enel SpA |
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434,924 |
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332,966 |
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9,760 |
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Energias de Portugal SA,
ADR |
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262,599 |
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381,518 |
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29,000 |
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Enersis SA, ADR |
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172,658 |
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535,630 |
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140,000 |
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Hera SpA |
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297,864 |
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340,362 |
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|
10,000 |
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Hokkaido Electric
Power Co. Inc. |
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171,210 |
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187,575 |
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10,000 |
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Hokuriku Electric
Power Co. |
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|
165,392 |
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228,889 |
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14,000 |
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Huaneng Power
International Inc., ADR |
|
|
421,063 |
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392,980 |
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|
75,000 |
|
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Iberdrola SA |
|
|
381,224 |
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608,139 |
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13,000 |
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Iberdrola SA, ADR |
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|
635,026 |
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409,760 |
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|
3,000 |
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International Power plc |
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|
25,732 |
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11,747 |
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|
26,000 |
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Korea Electric Power Corp.,
ADR |
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|
294,247 |
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299,000 |
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|
10,000 |
|
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Kyushu Electric
Power Co. Inc. |
|
|
178,959 |
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215,394 |
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|
4,500 |
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Oesterreichische
Elektrizitaetswirtschafts
AG, Cl. A |
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|
209,779 |
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229,031 |
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|
10,000 |
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Shikoku Electric
Power Co. Inc. |
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|
171,759 |
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298,957 |
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|
10,000 |
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|
The Chugoku Electric
Power Co. Inc. |
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|
170,328 |
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|
209,166 |
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|
16,000 |
|
|
The Kansai Electric
Power Co. Inc. |
|
|
284,747 |
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353,766 |
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|
10,000 |
|
|
The Tokyo Electric
Power Co. Inc. |
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|
220,693 |
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257,435 |
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10,000 |
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Tohoku Electric
Power Co. Inc. |
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164,025 |
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209,166 |
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U.S. Companies |
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1,000 |
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Allegheny Energy Inc. |
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25,689 |
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25,650 |
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2,000 |
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ALLETE Inc. |
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71,269 |
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57,500 |
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20,000 |
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Ameren Corp. |
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872,504 |
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497,800 |
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31,000 |
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American Electric
Power Co. Inc. |
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975,067 |
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895,590 |
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1,500 |
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Avista Corp. |
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27,915 |
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26,715 |
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6,000 |
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Black Hills Corp. |
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181,668 |
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137,940 |
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500 |
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Cleco Corp. |
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9,790 |
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11,210 |
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500 |
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CMS Energy Corp. |
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|
4,875 |
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6,040 |
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11,000 |
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Dominion Resources Inc. |
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452,826 |
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367,620 |
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60,000 |
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DPL Inc. |
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1,627,242 |
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|
1,390,200 |
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|
38,000 |
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|
Duke Energy Corp. |
|
|
535,087 |
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|
554,420 |
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|
5,000 |
|
|
El Paso Electric Co. |
|
|
95,713 |
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|
69,800 |
|
|
10,000 |
|
|
Florida Public Utilities Co. |
|
|
117,706 |
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|
140,300 |
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|
14,000 |
|
|
FPL Group Inc. |
|
|
654,896 |
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|
796,040 |
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|
65,000 |
|
|
Great Plains Energy Inc. |
|
|
1,676,659 |
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|
|
1,010,750 |
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|
22,000 |
|
|
Hawaiian Electric
Industries Inc. |
|
|
541,164 |
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|
|
419,320 |
|
|
29,500 |
|
|
Integrys Energy Group Inc. |
|
|
1,408,474 |
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|
|
884,705 |
|
|
7,000 |
|
|
Maine & Maritimes Corp. |
|
|
208,049 |
|
|
|
243,250 |
|
|
15,000 |
|
|
MGE Energy Inc. |
|
|
487,338 |
|
|
|
503,250 |
|
|
45,000 |
|
|
NiSource Inc. |
|
|
908,189 |
|
|
|
524,700 |
|
|
13,000 |
|
|
NorthWestern Corp. |
|
|
390,834 |
|
|
|
295,880 |
|
|
19,500 |
|
|
OGE Energy Corp. |
|
|
481,892 |
|
|
|
552,240 |
|
|
8,000 |
|
|
Otter Tail Corp. |
|
|
222,389 |
|
|
|
174,720 |
|
|
1,000 |
|
|
PG&E Corp. |
|
|
33,930 |
|
|
|
38,440 |
|
|
16,000 |
|
|
Pinnacle West Capital Corp. |
|
|
650,094 |
|
|
|
482,400 |
|
|
4,200 |
|
|
PPL Corp. |
|
|
117,280 |
|
|
|
138,432 |
|
|
31,000 |
|
|
Progress Energy Inc. |
|
|
1,324,875 |
|
|
|
1,172,730 |
|
|
32,000 |
|
|
Public Service Enterprise
Group Inc. |
|
|
1,065,920 |
|
|
|
1,044,160 |
|
|
18,000 |
|
|
SCANA Corp. |
|
|
646,320 |
|
|
|
584,460 |
|
|
1,000 |
|
|
TECO Energy Inc. |
|
|
15,970 |
|
|
|
11,930 |
|
|
30,000 |
|
|
The AES Corp. |
|
|
272,995 |
|
|
|
348,300 |
|
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2009 (Unaudited)
|
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Market |
|
Shares |
|
|
|
|
Cost |
|
|
Value |
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|
COMMON STOCKS (Continued) |
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ENERGY AND UTILITIES (Continued) |
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|
|
Energy and Utilities: Integrated (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies (Continued) |
|
|
|
|
|
|
|
|
|
1,500 |
|
|
The Empire District
Electric Co. |
|
$ |
32,322 |
|
|
$ |
24,780 |
|
|
45,000 |
|
|
The Southern Co. |
|
|
1,322,848 |
|
|
|
1,402,200 |
|
|
15,000 |
|
|
Unisource Energy Corp. |
|
|
369,330 |
|
|
|
398,100 |
|
|
17,000 |
|
|
Vectren Corp. |
|
|
408,701 |
|
|
|
398,310 |
|
|
41,000 |
|
|
Westar Energy Inc. |
|
|
860,569 |
|
|
|
769,570 |
|
|
5,000 |
|
|
Wisconsin Energy Corp. |
|
|
171,276 |
|
|
|
203,550 |
|
|
45,000 |
|
|
Xcel Energy Inc. |
|
|
761,340 |
|
|
|
828,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,311,688 |
|
|
|
24,747,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities: Natural Gas Integrated 4.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
80,000 |
|
|
Snam Rete Gas SpA |
|
|
288,733 |
|
|
|
350,995 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
50,000 |
|
|
El Paso Corp. |
|
|
428,725 |
|
|
|
461,500 |
|
|
1,000 |
|
|
Energen Corp. |
|
|
30,935 |
|
|
|
39,900 |
|
|
18,000 |
|
|
National Fuel Gas Co. |
|
|
488,706 |
|
|
|
649,440 |
|
|
2,000 |
|
|
ONEOK Inc. |
|
|
51,437 |
|
|
|
58,980 |
|
|
24,000 |
|
|
Southern Union Co. |
|
|
486,282 |
|
|
|
441,360 |
|
|
30,000 |
|
|
Spectra Energy Corp. |
|
|
634,201 |
|
|
|
507,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,409,019 |
|
|
|
2,509,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities: Natural Gas Utilities 4.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
1,500 |
|
|
Enagas |
|
|
37,053 |
|
|
|
29,492 |
|
|
1,890 |
|
|
GDF Suez |
|
|
62,915 |
|
|
|
70,368 |
|
|
11,454 |
|
|
GDF Suez, ADR (a) |
|
|
362,710 |
|
|
|
428,952 |
|
|
6,867 |
|
|
GDF Suez, Strips |
|
|
0 |
|
|
|
10 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
16,000 |
|
|
Atmos Energy Corp. |
|
|
394,047 |
|
|
|
400,640 |
|
|
20,000 |
|
|
Nicor Inc. |
|
|
667,385 |
|
|
|
692,400 |
|
|
5,000 |
|
|
Piedmont Natural
Gas Co. Inc. |
|
|
116,790 |
|
|
|
120,550 |
|
|
10,000 |
|
|
Southwest Gas Corp. |
|
|
250,760 |
|
|
|
222,100 |
|
|
5,000 |
|
|
The Laclede Group Inc. |
|
|
159,165 |
|
|
|
165,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,050,825 |
|
|
|
2,130,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities: Oil 3.8% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
1,000 |
|
|
Niko Resources Ltd. |
|
|
48,277 |
|
|
|
68,779 |
|
|
4,400 |
|
|
PetroChina Co. Ltd., ADR |
|
|
382,584 |
|
|
|
486,112 |
|
|
13,500 |
|
|
Petroleo Brasileiro SA, ADR |
|
|
450,058 |
|
|
|
553,230 |
|
|
9,000 |
|
|
Royal Dutch Shell plc,
Cl. A, ADR |
|
|
460,931 |
|
|
|
451,710 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
3,000 |
|
|
Chevron Corp. |
|
|
182,580 |
|
|
|
198,750 |
|
|
2,000 |
|
|
ConocoPhillips |
|
|
74,050 |
|
|
|
84,120 |
|
|
2,000 |
|
|
Devon Energy Corp. |
|
|
67,255 |
|
|
|
109,000 |
|
|
1,000 |
|
|
Exxon Mobil Corp. |
|
|
45,500 |
|
|
|
69,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,711,235 |
|
|
|
2,021,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities: Services 0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
10,000 |
|
|
ABB Ltd., ADR |
|
|
123,092 |
|
|
|
157,800 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
2,500 |
|
|
Halliburton Co. |
|
|
60,195 |
|
|
|
51,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
183,287 |
|
|
|
209,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities: Water 3.5% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
1,500 |
|
|
Consolidated Water Co. Ltd. |
|
|
25,565 |
|
|
|
23,775 |
|
|
49,000 |
|
|
Severn Trent plc |
|
|
860,939 |
|
|
|
881,924 |
|
|
37,090 |
|
|
United Utilities Group plc |
|
|
366,828 |
|
|
|
303,271 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
8,666 |
|
|
Aqua America Inc. |
|
|
129,735 |
|
|
|
155,121 |
|
|
2,700 |
|
|
California Water
Service Group |
|
|
76,295 |
|
|
|
99,468 |
|
|
4,000 |
|
|
Middlesex Water Co. |
|
|
75,033 |
|
|
|
57,800 |
|
|
17,000 |
|
|
SJW Corp. |
|
|
277,304 |
|
|
|
385,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,811,699 |
|
|
|
1,907,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Industrial 1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
13,000 |
|
|
Bouygues SA |
|
|
434,634 |
|
|
|
488,756 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
2,000 |
|
|
Woodward Governor Co. |
|
|
28,135 |
|
|
|
39,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
462,769 |
|
|
|
528,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Services 0.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
500 |
|
|
Suez Environnement SA |
|
|
0 |
|
|
|
8,729 |
|
|
12,000 |
|
|
Veolia Environnement |
|
|
367,020 |
|
|
|
353,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
367,020 |
|
|
|
362,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Power Producers and Energy Traders 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
12,000 |
|
|
NRG Energy Inc. |
|
|
289,986 |
|
|
|
311,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ENERGY
AND UTILITIES |
|
|
38,725,575 |
|
|
|
38,085,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS 20.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Cable and Satellite 6.5% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
10,000 |
|
|
Cogeco Inc. |
|
|
195,069 |
|
|
|
183,209 |
|
|
2,500 |
|
|
Rogers Communications Inc.,
Cl. B |
|
|
25,532 |
|
|
|
64,375 |
|
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2009 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares/ |
|
|
|
|
|
|
|
|
Market |
|
Units |
|
|
|
|
Cost |
|
|
Value |
|
|
|
|
|
COMMON STOCKS (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
Cable and Satellite (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies (Continued) |
|
|
|
|
|
|
|
|
|
5,400 |
|
|
Zon Multimedia Servicos de
Telecomunicacoes e
Multimedia SGPS SA |
|
$ |
53,052 |
|
|
$ |
28,734 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
25,000 |
|
|
Cablevision Systems Corp.,
Cl. A |
|
|
580,792 |
|
|
|
485,250 |
|
|
32,000 |
|
|
DISH Network Corp.,
Cl. A |
|
|
626,974 |
|
|
|
518,720 |
|
|
3,600 |
|
|
EchoStar Corp., Cl. A |
|
|
103,356 |
|
|
|
57,384 |
|
|
4,580 |
|
|
Liberty Global Inc., Cl. A |
|
|
86,290 |
|
|
|
72,776 |
|
|
4,000 |
|
|
Liberty Global Inc., Cl. C |
|
|
72,761 |
|
|
|
63,240 |
|
|
80,000 |
|
|
The DIRECTV Group Inc. |
|
|
1,797,110 |
|
|
|
1,976,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,540,936 |
|
|
|
3,450,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications 12.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
26,000 |
|
|
BCE Inc. |
|
|
534,078 |
|
|
|
537,160 |
|
|
4,000 |
|
|
Belgacom SA |
|
|
127,825 |
|
|
|
127,576 |
|
|
2,102 |
|
|
Bell Aliant Regional
Communications Income
Fund (a)(b) |
|
|
51,669 |
|
|
|
47,619 |
|
|
27,000 |
|
|
BT Group plc, ADR |
|
|
902,408 |
|
|
|
453,600 |
|
|
38,000 |
|
|
Deutsche Telekom AG, ADR |
|
|
632,643 |
|
|
|
448,400 |
|
|
6,000 |
|
|
France Telecom SA, ADR |
|
|
149,213 |
|
|
|
136,860 |
|
|
6,000 |
|
|
Manitoba Telecom
Services Inc. |
|
|
189,058 |
|
|
|
175,747 |
|
|
3,500 |
|
|
Orascom Telecom Holding
SAE, GDR |
|
|
78,883 |
|
|
|
93,100 |
|
|
25,000 |
|
|
Portugal Telecom SGPS SA |
|
|
299,870 |
|
|
|
244,483 |
|
|
15,000 |
|
|
Royal KPN NV, ADR |
|
|
114,993 |
|
|
|
207,750 |
|
|
1,500 |
|
|
Swisscom AG |
|
|
478,884 |
|
|
|
460,402 |
|
|
10,000 |
|
|
Telecom Italia SpA |
|
|
32,599 |
|
|
|
13,818 |
|
|
16,000 |
|
|
Telefonica SA, ADR |
|
|
658,948 |
|
|
|
1,086,240 |
|
|
14,000 |
|
|
Telefonos de Mexico SAB de
CV, Cl. L, ADR |
|
|
126,939 |
|
|
|
226,940 |
|
|
13,000 |
|
|
Telekom Austria AG |
|
|
196,030 |
|
|
|
203,162 |
|
|
13,000 |
|
|
Telmex Internacional SAB
de CV, ADR |
|
|
82,025 |
|
|
|
164,450 |
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
31,000 |
|
|
AT&T Inc. |
|
|
897,648 |
|
|
|
770,040 |
|
|
30,000 |
|
|
Sprint Nextel Corp. |
|
|
63,201 |
|
|
|
144,300 |
|
|
10,000 |
|
|
Telephone & Data
Systems Inc. |
|
|
342,725 |
|
|
|
283,000 |
|
|
25,000 |
|
|
Verizon
Communications Inc. |
|
|
908,836 |
|
|
|
768,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,868,475 |
|
|
|
6,592,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Communications 1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
2,000 |
|
|
America Movil SAB de
CV, Cl. L, ADR |
|
|
95,286 |
|
|
|
77,440 |
|
|
10,000 |
|
|
Millicom International
Cellular SA |
|
|
617,288 |
|
|
|
562,600 |
|
|
1,600 |
|
|
Mobile TeleSystems OJSC,
ADR |
|
|
54,874 |
|
|
|
59,088 |
|
|
4,000 |
|
|
Turkcell Iletisim Hizmetleri
A/S, ADR |
|
|
54,521 |
|
|
|
55,440 |
|
|
12,000 |
|
|
Vimpel-Communications,
ADR |
|
|
78,900 |
|
|
|
141,240 |
|
|
5,000 |
|
|
Vodafone Group plc, ADR |
|
|
138,000 |
|
|
|
97,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,038,869 |
|
|
|
993,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
COMMUNICATIONS |
|
|
11,448,280 |
|
|
|
11,036,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER 2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace 1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies 1.0% |
|
|
|
|
|
|
|
|
|
90,000 |
|
|
Rolls-Royce Group plc |
|
|
628,651 |
|
|
|
535,265 |
|
|
7,722,000 |
|
|
Rolls-Royce Group plc, Cl. C |
|
|
11,225 |
|
|
|
12,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
639,876 |
|
|
|
547,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building and Construction 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
400 |
|
|
Acciona SA |
|
|
42,173 |
|
|
|
49,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Services 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
4,000 |
|
|
Sistema JSFC, GDR (b) |
|
|
100,137 |
|
|
|
48,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entertainment 0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
11,000 |
|
|
Vivendi |
|
|
335,067 |
|
|
|
262,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals and Mining 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
6,400 |
|
|
Compania de Minas
Buenaventura SA, ADR |
|
|
66,939 |
|
|
|
153,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
6,000 |
|
|
Brookfield Asset
Management Inc., Cl. A |
|
|
149,494 |
|
|
|
102,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
3,500 |
|
|
GATX Corp. |
|
|
91,876 |
|
|
|
90,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER |
|
|
1,425,562 |
|
|
|
1,254,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON
STOCKS |
|
|
51,599,417 |
|
|
|
50,376,583 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2009 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Shares |
|
|
|
|
Cost |
|
|
Value |
|
|
|
|
|
CONVERTIBLE PREFERRED STOCKS 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
2,000 |
|
|
Cincinnati
Bell Inc., 6.750% Cv. Pfd., Ser. B |
|
$ |
64,126 |
|
|
$ |
58,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Transportation 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
|
200 |
|
|
GATX Corp., $2.50 Cv. Pfd. |
|
|
26,010 |
|
|
|
39,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CONVERTIBLE
PREFERRED STOCKS |
|
|
90,136 |
|
|
|
97,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WARRANTS 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Communications 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
|
|
|
|
|
|
|
2,000 |
|
|
Bharti Airtel Ltd.,
expire 09/19/13 (b) |
|
|
26,369 |
|
|
|
33,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
|
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONVERTIBLE CORPORATE BONDS 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies |
|
|
|
|
|
|
|
|
$ |
350,000 |
|
|
Palm Harbor
Homes Inc., Cv., 3.250%, 05/15/24 |
|
|
326,667 |
|
|
|
122,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GOVERNMENT OBLIGATIONS 5.2% |
|
|
|
|
|
2,765,000 |
|
|
U.S.
Treasury Bills, 0.132% to 0.183%, 07/30/09 to 09/17/09 |
|
|
2,764,418 |
|
|
|
2,764,406 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS 100.0% |
|
$ |
54,807,007 |
|
|
|
53,394,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets and Liabilities (Net) |
|
|
|
|
|
|
251,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS COMMON SHARES |
|
|
|
|
|
|
|
|
(3,050,236 common shares outstanding) |
|
|
|
|
|
$ |
53,645,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE PER COMMON SHARE |
|
|
|
|
|
|
|
|
($53,645,422 ÷ 3,050,236 shares outstanding) |
|
|
|
|
|
$ |
17.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
|
Security fair valued under procedures established by the
Board of Trustees. The procedures may include reviewing
available financial information about the company and reviewing
the valuation of comparable securities and other factors on a
regular basis. At June 30, 2009, the market value of fair
valued securities amounted to $476,571 or 0.89% of total
investments. |
|
(b) |
|
Security exempt from registration under Rule 144A of the
Securities Act of 1933, as amended. These securities may be
resold in transactions exempt from registration, normally
to qualified institutional buyers. At June 30, 2009, the
market value of Rule 144A securities amounted to $129,388
or 0.24% of total investments. |
|
|
|
Non-income producing security. |
|
|
|
Represents annualized yield at date of
purchase. |
|
ADR |
|
American Depositary Receipt |
|
GDR |
|
Global
Depositary Receipt |
|
|
|
|
|
|
|
|
|
|
|
% of |
|
|
|
|
Market |
|
Market |
Geographic Diversification |
|
Value |
|
Value |
North America |
|
|
65.5 |
% |
|
|
$34,959,581 |
|
Europe |
|
|
24.1 |
|
|
|
12,882,393 |
|
Japan |
|
|
4.6 |
|
|
|
2,453,106 |
|
Latin America |
|
|
3.2 |
|
|
|
1,735,257 |
|
Asia/Pacific |
|
|
2.4 |
|
|
|
1,270,664 |
|
Africa/Middle East |
|
|
0.2 |
|
|
|
93,100 |
|
|
|
|
|
|
|
|
|
|
Total Investments |
|
|
100.0 |
% |
|
|
$53,394,101 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL UTILITY & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2009 (Unaudited)
|
|
|
|
|
Assets: |
|
|
|
|
Investments, at value (cost $54,807,007) |
|
$ |
53,394,101 |
|
Foreign currency, at value (cost $20,543) |
|
|
20,996 |
|
Cash |
|
|
27,311 |
|
Receivable for investments sold |
|
|
565,352 |
|
Dividends and interest receivable |
|
|
218,966 |
|
Unrealized appreciation on swap contracts |
|
|
14,563 |
|
Deferred offering expense |
|
|
109,678 |
|
Prepaid expense |
|
|
1,534 |
|
|
|
|
|
Total Assets |
|
|
54,352,501 |
|
|
|
|
|
Liabilities: |
|
|
|
|
Payable for investments purchased |
|
|
585,627 |
|
Payable for investment advisory fees |
|
|
39,588 |
|
Payable for payroll expenses |
|
|
21,849 |
|
Payable for accounting fees |
|
|
3,750 |
|
Other accrued expenses |
|
|
56,265 |
|
|
|
|
|
Total Liabilities |
|
|
707,079 |
|
|
|
|
|
Net Assets applicable to 3,050,236 shares outstanding |
|
$ |
53,645,422 |
|
|
|
|
|
Net Assets Consist of: |
|
|
|
|
Paid-in capital, at $0.001 par value |
|
$ |
55,705,468 |
|
Accumulated net investment income |
|
|
64,742 |
|
Accumulated net realized loss on investments and
foreign currency transactions |
|
|
(728,593 |
) |
Net unrealized depreciation on investments |
|
|
(1,412,906 |
) |
Net unrealized appreciation on swap contracts |
|
|
14,563 |
|
Net unrealized appreciation on foreign
currency translations |
|
|
2,148 |
|
|
|
|
|
Net Assets |
|
$ |
53,645,422 |
|
|
|
|
|
Net Asset Value Per Common Share: |
|
|
|
|
($53,645,422 ÷ 3,050,236 shares outstanding;
unlimited number of shares authorized) |
|
$ |
17.59 |
|
|
|
|
|
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2009 (Unaudited)
|
|
|
|
|
Investment Income: |
|
|
|
|
Dividends (net of foreign taxes of $63,787) |
|
$ |
1,229,457 |
|
Interest |
|
|
15,507 |
|
|
|
|
|
Total Investment Income |
|
|
1,244,964 |
|
|
|
|
|
Expenses: |
|
|
|
|
Investment advisory fees |
|
|
250,569 |
|
Payroll expenses |
|
|
37,650 |
|
Shareholder communications expenses |
|
|
30,633 |
|
Trustees fees |
|
|
29,601 |
|
Legal and audit fees |
|
|
27,611 |
|
Custodian fees |
|
|
16,617 |
|
Accounting fees |
|
|
15,000 |
|
Shareholder services fees |
|
|
6,193 |
|
Interest expense |
|
|
61 |
|
Miscellaneous expenses |
|
|
14,267 |
|
|
|
|
|
Total Expenses |
|
|
428,202 |
|
|
|
|
|
Net Investment Income |
|
|
816,762 |
|
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments,
Swap Contracts, and Foreign Currency: |
|
|
|
|
Net realized loss on investments |
|
|
(322,759 |
) |
Net realized gain on swap contracts |
|
|
73,285 |
|
Net realized loss on foreign currency transactions |
|
|
(282 |
) |
|
|
|
|
Net realized loss on investments, swap contracts,
and foreign currency transactions |
|
|
(249,756 |
) |
|
|
|
|
Net change in unrealized appreciation/depreciation: |
|
|
|
|
on investments |
|
|
(1,508,201 |
) |
on swap contracts |
|
|
(7,025 |
) |
on foreign currency translations |
|
|
2,241 |
|
|
|
|
|
Net change in unrealized appreciation/depreciation on
investments, swap contracts, and foreign
currency translations |
|
|
(1,512,985 |
) |
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on
Investments, Swap Contracts, and
Foreign Currency |
|
|
(1,762,741 |
) |
|
|
|
|
Net Decrease in Net Assets Resulting
from Operations |
|
$ |
(945,979 |
) |
|
|
|
|
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL UTILITY & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, 2009 |
|
|
Year Ended |
|
|
|
(Unaudited) |
|
|
December 31, 2008 |
|
Operations: |
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
816,762 |
|
|
$ |
1,433,176 |
|
Net realized gain/(loss) on investments, swap contracts, and foreign currency transactions |
|
|
(249,756 |
) |
|
|
720,643 |
|
Net change in unrealized appreciation/depreciation on investments, swap contracts,
and foreign currency translations |
|
|
(1,512,985 |
) |
|
|
(19,852,318 |
) |
|
|
|
|
|
|
|
Net Decrease in Net Assets Resulting from Operations |
|
|
(945,979 |
) |
|
|
(17,698,499 |
) |
|
|
|
|
|
|
|
Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
Net investment income |
|
|
(713,755) |
* |
|
|
(1,677,946 |
) |
Net realized short-term gain |
|
|
|
|
|
|
(240,202 |
) |
Net realized long-term gain |
|
|
|
|
|
|
(1,222,057 |
) |
Return of capital |
|
|
(1,116,386) |
* |
|
|
(520,078 |
) |
|
|
|
|
|
|
|
Total Distributions to Common Shareholders |
|
|
(1,830,141 |
) |
|
|
(3,660,283 |
) |
|
|
|
|
|
|
|
Fund Share Transactions: |
|
|
|
|
|
|
|
|
Contribution from Adviser |
|
|
|
|
|
|
1,974 |
|
|
|
|
|
|
|
|
Net Decrease in Net Assets |
|
|
(2,776,120 |
) |
|
|
(21,356,808 |
) |
Net Assets: |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
56,421,542 |
|
|
|
77,778,350 |
|
|
|
|
|
|
|
|
End of period (including undistributed net investment income of $64,742 and $0, respectively) |
|
$ |
53,645,422 |
|
|
$ |
56,421,542 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
Based on fiscal year to date book income. Amounts are subject to change and
recharacterization at fiscal year end. |
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL UTILITY & INCOME TRUST
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
Selected data for a common share of beneficial |
|
June 30, 2009 |
|
|
Year Ended December 31, |
|
|
Period Ended |
|
interest outstanding throughout each period: |
|
(Unaudited) |
|
|
2008 |
|
|
2007 |
|
|
2006 |
|
|
2005 |
|
|
December 31, 2004 (d) |
|
Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
18.50 |
|
|
$ |
25.50 |
|
|
$ |
24.52 |
|
|
$ |
20.45 |
|
|
$ |
21.03 |
|
|
$ |
19.06 |
(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
0.27 |
|
|
|
0.47 |
|
|
|
0.45 |
|
|
|
0.64 |
|
|
|
0.64 |
|
|
|
0.28 |
|
Net realized and unrealized gain/(loss) on investments,
swap contracts, and foreign currency transactions |
|
|
(0.58 |
) |
|
|
(6.27 |
) |
|
|
2.06 |
|
|
|
4.63 |
|
|
|
0.23 |
|
|
|
2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations |
|
|
(0.31 |
) |
|
|
(5.80 |
) |
|
|
2.51 |
|
|
|
5.27 |
|
|
|
0.87 |
|
|
|
2.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.23 |
)(b) |
|
|
(0.55 |
) |
|
|
(0.30 |
) |
|
|
(0.65 |
) |
|
|
(0.63 |
) |
|
|
(0.28 |
) |
Net realized gain |
|
|
|
|
|
|
(0.48 |
) |
|
|
(1.23 |
) |
|
|
(0.55 |
) |
|
|
(0.82 |
) |
|
|
(0.06 |
) |
Return of capital |
|
|
(0.37 |
)(b) |
|
|
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common shareholders |
|
|
(0.60 |
) |
|
|
(1.20 |
) |
|
|
(1.53 |
) |
|
|
(1.20 |
) |
|
|
(1.45 |
) |
|
|
(0.60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution from Adviser |
|
|
|
|
|
|
0.00 |
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital share transactions |
|
|
|
|
|
|
0.00 |
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, End of Period |
|
$ |
17.59 |
|
|
$ |
18.50 |
|
|
$ |
25.50 |
|
|
$ |
24.52 |
|
|
$ |
20.45 |
|
|
$ |
21.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV total return |
|
|
(1.45 |
)% |
|
|
(23.30 |
)% |
|
|
10.46 |
% |
|
|
26.66 |
% |
|
|
4.2 |
% |
|
|
13.9 |
%(f) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of period |
|
$ |
16.34 |
|
|
$ |
15.90 |
|
|
$ |
23.05 |
|
|
$ |
22.17 |
|
|
$ |
17.76 |
|
|
$ |
19.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
investment return |
|
|
6.94 |
% |
|
|
(26.43 |
)% |
|
|
11.29 |
% |
|
|
32.83 |
% |
|
|
(2.3 |
)% |
|
|
1.3 |
%(g) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in 000s) |
|
$ |
53,645 |
|
|
$ |
56,422 |
|
|
$ |
77,778 |
** |
|
$ |
74,807 |
|
|
$ |
62,381 |
|
|
$ |
64,160 |
|
Ratio of net investment income to average net assets |
|
|
3.22 |
%(c) |
|
|
2.15 |
% |
|
|
1.82 |
% |
|
|
2.92 |
% |
|
|
2.99 |
% |
|
|
2.23 |
%(c) |
Ratio of operating expenses to average net assets (a) |
|
|
1.69 |
%(c) |
|
|
1.54 |
% |
|
|
1.55 |
% |
|
|
1.66 |
% |
|
|
1.56 |
% |
|
|
1.49 |
%(c) |
Portfolio
turnover rate |
|
|
6.7 |
% |
|
|
24.3 |
% |
|
|
16.7 |
% |
|
|
21.8 |
% |
|
|
21.0 |
% |
|
|
16.9 |
% |
|
|
|
|
|
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 Funds dividend reinvestment plan. Total return for a period of less than one year is
not annualized. |
|
|
|
Effective in 2008, a change in accounting policy was adopted with regard to the calculation of
the portfolio turnover rate to include cash proceeds due to mergers. Had this policy been adopted
retroactively, the portfolio turnover rate for the years ended December 31, 2007, 2006, and 2005,
would have been 35.0%, 22.2%, and 37.8%, respectively. The portfolio turnover rate for the period
ended December 31, 2004 would have been as shown. |
|
* |
|
Amount represents less than $0.005 per share. |
|
** |
|
Revised to correct a typographical error. |
|
(a) |
|
For the years ended December 31, 2008, 2007, 2006, and 2005, the effect of the
custodian fee credits was minimal. |
|
(b) |
|
Based on year to date book income. Amounts are subject to change and
recharacterization at year end. |
|
(c) |
|
Annualized. |
|
(d) |
|
The Gabelli Global Utility & Income Trust commenced investment operations on May 28, 2004. |
|
(e) |
|
The beginning of period NAV reflects a $0.04 reduction for costs associated with
the initial public offering. |
|
(f) |
|
Based on net asset value per share at commencement
of operations of $19.06 per share. |
|
(g) |
|
Based on market value per share at initial public offering of $20.00 per share. |
See accompanying notes to financial statements.
9
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Organization. The Gabelli Global Utility & Income Trust (the Fund) is a non-diversified
closed-end management investment company organized as a Delaware statutory trust on March 8, 2004
and registered under the Investment Company Act of 1940, as amended (the 1940 Act). Investment
operations commenced on May 28, 2004.
The Funds investment objective is to seek a consistent level of after-tax total return over
the long term with an emphasis currently on qualified dividends. The Fund will attempt to achieve
its investment objective by investing, under normal market conditions, at least 80% of its assets
in equity securities (including preferred securities) of domestic and foreign companies involved to
a substantial extent in providing products, services, or equipment for the generation or
distribution of electricity, gas, or water and infrastructure operations, and in equity securities
(including preferred securities) of companies in other industries, in each case in such securities
that are expected to periodically pay dividends.
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 markets official closing price as
of the close of business on the day the securities are being valued. If there were no sales that
day, the security is valued at the average of the closing bid and asked prices or, if there were no
asked prices quoted on that day, then the security is valued at the closing bid price on that day.
If no bid or asked prices are quoted on such day, the security is valued at the most recently
available price or, if the Board of Trustees (the Board) so determines, by such other method as
the Board shall determine in good faith to reflect its fair market value. Portfolio securities
traded on more than one national securities exchange or market are valued according to the broadest
and most representative market, as determined by Gabelli Funds, LLC (the Adviser).
Portfolio securities primarily traded on a foreign market are generally valued at the
preceding closing values of such securities on the relevant market, but may be fair valued pursuant
to procedures established by the Board if market conditions change significantly after the close of
the foreign market but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of sixty days or less that are not credit impaired are
valued at amortized cost, unless the Board determines such amount does not reflect the securities
fair value, in which case these securities will be fair valued as determined by the Board. Debt
instruments having a maturity greater than sixty 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 with the valuation and changes in valuation of similar securities, including a
comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close
of the U.S. exchange; and evaluation of any other information that could be indicative of the value
of the security.
Statement of Financial Accounting Standard No. 157, Fair Value Measurements (SFAS 157)
clarifies the definition of fair value for financial reporting, establishes a framework for
measuring fair value, and requires additional disclosures about the use of fair value measurements.
The three levels of the fair value hierarchy under SFAS 157 are described below:
|
|
|
Level 1 quoted prices in active markets for identical securities; |
10
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
|
|
|
Level 2 other significant observable inputs (including quoted prices for similar
securities, interest rates, prepayment speeds, credit risk, etc.); and |
|
|
|
|
Level 3 significant unobservable inputs (including the Funds determinations as to
the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the
risk associated with investing in those securities. The summary of the Funds investments and other
financial instruments by inputs used to value the Funds investments as of June 30, 2009 is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
|
|
|
Level 1 - |
|
Level 2 - |
|
Total |
|
|
Quoted |
|
Other Significant |
|
Market Value |
|
|
Prices |
|
Observable Inputs |
|
at 6/30/09 |
INVESTMENTS IN SECURITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value): |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
$ |
4,579,688 |
|
|
$ |
47,619 |
|
|
$ |
4,627,307 |
|
OTHER |
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies |
|
|
535,265 |
|
|
|
12,704 |
|
|
|
547,969 |
|
Other Industries(a) |
|
|
45,201,307 |
|
|
|
|
|
|
|
45,201,307 |
|
|
Total Common Stocks |
|
|
50,316,260 |
|
|
|
60,323 |
|
|
|
50,376,583 |
|
Convertible Preferred Stocks(a) |
|
|
97,123 |
|
|
|
|
|
|
|
97,123 |
|
Warrants(a) |
|
|
|
|
|
|
33,489 |
|
|
|
33,489 |
|
Convertible Corporate Bonds |
|
|
|
|
|
|
122,500 |
|
|
|
122,500 |
|
U.S. Government Obligations |
|
|
|
|
|
|
2,764,406 |
|
|
|
2,764,406 |
|
|
TOTAL INVESTMENTS IN SECURITIES |
|
$ |
50,413,383 |
|
|
$ |
2,980,718 |
|
|
$ |
53,394,101 |
|
|
OTHER FINANCIAL INSTRUMENTS: |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Unrealized Appreciation): * |
|
|
|
|
|
|
|
|
|
|
|
|
Contract for Difference Swap Agreements |
|
$ |
|
|
|
$ |
14,563 |
|
|
$ |
14,563 |
|
|
|
|
|
(a) |
|
Security and industry classifications for these categories are detailed in the Schedule of
Investments. |
|
* |
|
Other financial instruments are derivative instruments not reflected in the Schedule of
Investments, such as futures, forwards, and swaps which are valued at the unrealized
appreciation/depreciation of the investment. |
There were no Level 3 investments held at December 31, 2008 or June 30, 2009.
Derivative Financial Instruments.
The Fund may invest in various derivative financial instruments and engage in various portfolio
investment strategies for the purpose of increasing the income of the Fund, hedging against changes
in the value of its portfolio securities and in the value of securities it intends to purchase, or
hedging against a specific transaction with respect to either the currency in which the transaction
is denominated or another currency. Losses may arise if the value of the contract decreases due to
an unfavorable change in the price of the underlying security or if the counterparty does not
perform its duties under the contract. Investing in certain derivative financial instruments
entails certain execution, market, liquidity, hedging, and tax risks. Participation in the options
or futures markets and in currency exchange transactions involves investment risks and transaction
costs to which the Fund would not be subject absent the use of these strategies. If the Advisers
prediction of movements in the direction of the securities, foreign currency, and interest rate
markets is inaccurate, the consequences to the Fund may leave the Fund in a worse position than if
it had not used such strategies.
11
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The Fund is subject to equity price risk and foreign currency exchange rate risk in the normal
course of pursuing its investment objectives by investing in various derivative financial
instruments, as described below.
Swap Agreements. The Fund may enter into equity and contract for difference swap transactions for
the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity
that involves investment techniques and risks different from those associated with ordinary
portfolio security transactions. In a swap, a set of future cash flows 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 Funds portfolio securities at that point in time, such a default could negatively
affect the Funds 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 Funds
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 below.
Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a
liability in the Statement of Assets and Liabilities. The change in value of swaps, including the
accrual of periodic amounts of interest to be paid or received on swaps, is reported as unrealized
gain or loss in the Statement of Operations. A realized gain or loss is recorded upon payment or
receipt of a periodic payment or termination of swap agreements.
The Fund has entered into equity contract for difference swap agreements with The Goldman Sachs
Group, Inc. Details of the swaps at June 30, 2009 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional |
|
Equity Security |
|
|
Interest Rate/ |
|
|
Termination |
|
|
Net Unrealized |
|
Amount |
|
Received |
|
|
Equity Security Paid |
|
Date |
|
|
Appreciation |
|
|
|
Market Value Appreciation on: |
|
Overnight LIBOR plus 90 bps plus Market Value Depreciation on: |
|
|
|
|
|
|
|
|
$282,705 (50,000 Shares) |
|
Rolls-Royce Group plc |
|
Rolls-Royce Group plc |
|
|
6/25/10 |
|
|
$ |
14,528 |
|
7,020 (4,290,000 Shares) |
|
Rolls-Royce Group plc, Cl. C |
|
Rolls-Royce Group plc, Cl. C |
|
|
7/02/09 |
|
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
14,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against
changes in the value of its portfolio securities and in the value of securities it intends to
purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an
amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is
known as the initial margin. Subsequent payments (variation margin) are made or received by the
Fund each day, depending on the daily fluctuations in the value of the contract, which are included
in unrealized appreciation/depreciation on investments and futures contracts. The Fund recognizes a
realized gain or loss when the contract is closed.
12
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
There are several risks in connection with the use of futures contracts as a hedging instrument.
The change in value of futures contracts primarily corresponds with the value of their underlying
instruments, which may not correlate with the change in value of the hedged investments. In
addition, there is the risk that the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market. At June 30, 2009, there were no open futures contracts.
Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for
the purpose of hedging a specific transaction with respect to either the currency in which the
transaction is denominated or another currency as deemed appropriate by the Adviser. Forward
foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The
change in market value is included in unrealized appreciation/depreciation on investments and
foreign currency translations. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time it was opened and the
value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying
prices of the Funds portfolio securities, but it does establish a rate of exchange that can be
achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential gain that might result
should the value of the currency increase. In addition, the Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts. At June 30, 2009,
there were no open forward foreign exchange contracts.
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 Funds holding period. It is the policy of the Fund to always
receive and maintain securities as collateral whose market value, including accrued interest, is at
least equal to 102% of the dollar amount invested by the Fund in each agreement. The Fund will make
payment for such securities only upon physical delivery or upon evidence of book entry transfer of
the collateral to the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a daily basis to
maintain the adequacy of the collateral. If the seller defaults and the value of the collateral
declines or if bankruptcy proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited. At June 30, 2009, there were
no open repurchase agreements.
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. The Fund did not hold any short positions as of June 30, 2009.
13
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
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.
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 of 2.00% above the federal funds rate on
outstanding balances. This amount, if any, would be included in 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. These reclassifications have no impact on the
NAV of the Fund.
14
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The tax character of distributions paid during the year ended December 31, 2008 was as follows:
|
|
|
|
|
Distributions paid from: |
|
|
|
|
Ordinary income
(inclusive of net short-term capital gains) |
|
$ |
1,918,148 |
|
Net long-term capital gains |
|
|
1,222,057 |
|
Return of capital |
|
|
520,078 |
|
|
|
|
|
Total distributions paid |
|
$ |
3,660,283 |
|
|
|
|
|
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.
Under the current tax law, capital losses related to securities and foreign currency realized
after October 31 and prior to the Funds fiscal year end may be treated as occurring on the first
day of the following year. For the year ended December 31, 2008, the Fund deferred capital losses
of $431,743.
As of December 31, 2008, the components of accumulated earnings/losses on a tax basis were as
follows:
|
|
|
|
|
Net unrealized appreciation on investments |
|
$ |
31,788 |
|
Net unrealized depreciation on swap contracts and
foreign currency translations |
|
|
(93 |
) |
Post-October capital loss deferral |
|
|
(431,743 |
) |
Other temporary differences* |
|
|
(264 |
) |
|
|
|
|
Total |
|
$ |
(400,312 |
) |
|
|
|
|
|
|
|
* |
|
Other temporary differences are primarily due to swap accrual adjustments and basis adjustments
from investments in hybrid securities and conversion premiums. |
The following summarizes the tax cost of investments, swap contracts, and the related
unrealized
appreciation/depreciation at June 30, 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
Net Unrealized |
|
|
|
|
|
|
|
Unrealized |
|
|
Unrealized |
|
|
Appreciation/ |
|
|
|
Cost |
|
|
Appreciation |
|
|
Depreciation |
|
|
Depreciation |
|
Investments |
|
$ |
55,080,545 |
|
|
$ |
4,834,804 |
|
|
$ |
(6,521,248 |
) |
|
$ |
(1,686,444 |
) |
Swap contracts |
|
|
|
|
|
|
14,563 |
|
|
|
|
|
|
|
14,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
55,080,545 |
|
|
$ |
4,849,367 |
|
|
$ |
(6,521,248 |
) |
|
$ |
(1,671,881 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Management has analyzed the Funds tax positions taken on federal income tax returns for all
open tax years (current and prior three tax years) and has concluded that no provision for federal
income tax is required in the Funds financial statements. The Funds federal and state income and
federal excise tax returns for tax years for which the applicable statutes of limitations have not
expired are subject to examination by the Internal Revenue Service and state departments of
revenue.
15
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
3. Agreements and Transactions with Affiliates. The Fund has 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 0.90% (prior to May 28, 2009, the
Advisory fees was 1.00%) of the value of the Funds average weekly total assets. In accordance with
the Advisory Agreement, the Adviser provides a continuous investment program for the Funds
portfolio and oversees the administration of all aspects of the Funds business and affairs.
During the six months ended June 30, 2009, the Fund paid brokerage commissions on security
trades of $7,246 to Gabelli & Company, Inc. (Gabelli & Company), an affiliate of the Adviser.
The cost of calculating the Funds NAV per share is a Fund expense pursuant to the Advisory
Agreement. During the six months ended June 30, 2009, the Fund paid or accrued $15,000 to the
Adviser in connection with the cost of computing the Funds NAV.
As per the approval of the Board, the Fund compensates officers of the Fund, who are employed
by the Fund and are not employed by the Adviser (although the officers may receive incentive based
variable compensation from affiliates of the Adviser) and pays its allocated portion of the cost of
the Funds Chief Compliance Officer. For the six months ended June 30, 2009 the Fund paid or
accrued $37,650, 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 and each Trustee is reimbursed by the Fund
for any out of pocket expenses incurred in attending meetings. All Board committee members receive
$500 per meeting attended. In addition, the Audit Committee Chairman receives an annual fee of
$3,000, the Nominating Committee Chairman receives an annual fee of $2,000, and the Lead Trustee
receives an annual fee of $1,000. A Trustee may receive a single meeting fee, allocated among the
participating funds, for participation in certain meetings held on behalf of multiple funds.
Trustees who are directors or employees of the Adviser or an affiliated company receive no
compensation or expense reimbursement from the Fund.
4. Portfolio Securities. Purchases and sales of securities for the six months ended June 30, 2009,
other than short-term securities and U.S. Government obligations, aggregated $3,906,120 and
$2,067,940, respectively.
Sales of U.S. Government obligations for the six months ended June 30, 2009, other than
short-term obligations, aggregated $1,150,000.
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 on the open
market when the shares are trading at a discount of 10% or more (or such other percentage as the
Board may determine from time to time) from the NAV of the shares. During the six months ended June
30, 2009, the Fund did not have any transactions in shares of beneficial interest.
A shelf registration authorizing the offering of preferred shares was declared effective by
the SEC on March 19, 2008.
6. Industry Concentration. Because the Fund primarily invests in common stocks and other securities
of foreign and domestic companies in the utility industry, its portfolio may be subject to greater
risk and market fluctuations than a portfolio of securities representing a broad range of
investments.
16
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
7. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The
Funds 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.
8. Other Matters. On April 24, 2008, the Adviser entered into an administrative settlement with the
SEC to resolve the SECs inquiry regarding prior frequent trading activity in shares of the GAMCO
Global Growth Fund (the Global Growth Fund) by one investor who was banned from the Global Growth
Fund in August 2002. In the settlement, the SEC found that the Adviser had violated Section 206(2)
of the Investment Advisers Act, Section 17(d) of the 1940 Act, and Rule 17d-1 thereunder, and had
aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms
of the settlement, the Adviser, while neither admitting nor denying the SECs findings and
allegations, agreed, among other things, to pay the previously reserved total of $16 million
(including a $5 million penalty), of which at least $11 million will be distributed to shareholders
of the Global Growth Fund in accordance with a plan being developed by an independent distribution
consultant and approved by the independent directors of the Global Growth Fund and the staff of the
SEC, and to cease and desist from future violations of the above referenced federal securities
laws. The settlement will not have a material adverse impact on the Adviser or its ability to
fulfill its obligations under the Advisory Agreement. On the same day, the SEC filed a civil action
against the Executive Vice President and Chief Operating Officer of the Adviser, alleging
violations of certain federal securities laws arising from the same matter. The officer is also an
officer of the Global Growth Fund and other funds in the Gabelli/GAMCO fund complex including the
Fund. The officer denies the allegations and is continuing in his positions with the Adviser and
the funds. The Adviser currently expects that any resolution of the action against the officer will
not have a material adverse impact on the Fund or the Adviser or its ability to fulfill its
obligations under the Advisory Agreement.
9. Subsequent Events. Management has evaluated the impact of all subsequent events on the Fund
through August 26, 2009, the date the financial statements were issued, and has determined that
there were no subsequent events requiring recognition or disclosure in the financial statements.
17
THE GABELLI GLOBAL UTILITY & INCOME TRUST
Board Consideration and Re-Approval of Investment Advisory Agreement (Unaudited)
At its meeting on May 20, 2009, the Board of Trustees (Board) of the Fund approved the
continuation of the investment advisory agreement with the Adviser for the Fund on the basis of the
recommendation by the trustees who are not interested persons of the Fund (the Independent Board
Members). The following paragraphs summarize the material information and factors considered by
the Independent Board Members as well as their conclusions relative to such factors.
Nature, Extent, and Quality of Services. The Independent Board Members considered information
regarding the portfolio manager, the depth of the analyst pool available to the Adviser and the
portfolio manager, the scope of supervisory, administrative, shareholder, and other services
supervised or provided by the Adviser and the absence of significant service problems reported to
the Board. The Independent Board Members noted the experience, length of service, and reputation of
the portfolio manager.
Investment Performance. The Independent Board Members reviewed the performance of the Fund since
inception against a peer group of equity closed-end funds. The Independent Board Members noted that
the Funds performance was in the top quartile of the funds in its peer group for the prior one and
three year periods since inception.
Profitability. The Independent Board Members reviewed summary data regarding the profitability of
the Fund to the Adviser both with an administrative overhead charge and without such charge and
found the profitability to be below normal. The Board also noted that portions of the Funds
portfolio transactions were executed by the Advisers affiliated broker, resulting in incremental
profits to the broker.
Economies of Scale. The Independent Board Members discussed the major elements of the Advisers
cost structure and the relationship of those elements to potential economies of scale. The
Independent Board Members noted that the Fund was a closed-end fund and unlikely to realize any
economies of scale potentially available through growth in the absence of additional offerings.
Sharing of Economies of Scale. The Independent Board Members noted that the investment management
fee schedule for the Fund does not take into account any potential economies of scale.
Service and Cost Comparisons. The Independent Board Members compared the expense ratios of the
investment advisory fee, other expenses, and total expenses of the Fund with similar expense ratios
of the peer group of equity closed-end funds and noted that the advisory fee includes substantially
all administrative services of the Fund as well as investment advisory services of the Adviser. The
Independent Board Members noted that the Funds expense ratios were above average and the Funds
size was below average within the group. The Independent Board Members were presented with, but did
not consider to be material to their decision, various information comparing the advisory fee with
the fee for other types of accounts managed by the Adviser.
Conclusions. The Independent Board Members concluded that the Fund enjoyed highly experienced
portfolio management services, good ancillary services, and a reasonable performance record within
its conservative stance. The Independent Board Members also concluded that the Funds expense
ratios were reasonable in light of the Funds size, and that, in part due to the Funds structure
as a closed-end fund, economies of scale were not a significant factor in their thinking. The
Independent Board Members did not view the potential profitability of ancillary services as
material to their decision. On the basis of the foregoing and without assigning particular weight
to any single conclusion, the Independent Board Members determined to recommend continuation of the
investment management agreement to the full Board.
18
|
Trustees |
Anthony J. Colavita |
President, |
Anthony J. Colavita, P.C. |
|
James P. Conn |
Former Managing Director & |
Chief Investment Officer, |
Financial Security Assurance Holdings Ltd. |
|
Mario dUrso |
Former Italian Senator |
|
Vincent D. Enright |
Former Senior Vice President & |
Chief Financial Officer, |
KeySpan Corp. |
|
Michael J. Melarkey |
Attorney-at-Law, |
Avansino, Melarkey, Knobel & Mulligan |
|
Salvatore M. Salibello |
Certified Public Accountant, |
Salibello & Broder LLP |
|
Salvatore J. Zizza |
Chairman, Zizza & Co., Ltd. |
|
Officers |
Bruce N. Alpert |
President |
|
Peter D. Goldstein |
Chief Compliance Officer |
|
Agnes Mullady |
Treasurer & Secretary |
|
David I. Schachter |
Vice President & Ombudsman |
|
Investment Adviser |
Gabelli Funds, LLC |
One Corporate Center |
Rye, New York 10580-1422 |
|
Custodian |
State Street Bank and Trust Company |
|
Counsel |
Skadden, Arps, Slate, Meagher & Flom, LLP |
|
Transfer Agent and Registrar |
Computershare Trust Company, N.A. |
|
Stock Exchange Listing |
|
|
|
|
|
|
|
Common |
NYSE AmexSymbol: |
|
GLU |
Shares Outstanding: |
|
|
3,050,236 |
|
The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading
Specialized Equity Funds, in Mondays The Wall Street Journal. It is also listed in Barrons
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 Funds shares are trading at a discount of 10% or more from the net asset value of the shares.
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
(a) |
|
Schedule of Investments in securities of unaffiliated issuers as of the close of the
reporting period is included as part of the report to shareholders filed under Item 1 of this
form. |
|
(b) |
|
Not applicable. |
|
|
|
Item 7. |
|
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies. |
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
There has been no change, as of the date of this filing, in any of the portfolio managers
identified in response to paragraph (a)(1) of this Item in the registrants most recently filed
annual report on Form N-CSR.
|
|
|
Item 9. |
|
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers. |
REGISTRANT PURCHASES OF EQUITY SECURITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Total Number of |
|
(d) Maximum Number (or |
|
|
|
|
|
|
Shares (or Units) |
|
Approximate Dollar Value)of |
|
|
(a) Total Number of |
|
|
|
Purchased as Part of |
|
Shares (or Units) that May |
|
|
Shares (or Units) |
|
(b) Average Price Paid |
|
Publicly Announced |
|
Yet Be Purchased Under the |
Period |
|
Purchased |
|
per Share (or Unit) |
|
Plans or Programs |
|
Plans or Programs |
Month #1
01/01/09 through
01/31/09
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common 3,050,236
Preferred N/A |
|
|
|
|
|
|
|
|
|
Month #2
02/01/09 through
02/28/09
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common 3,050,236
Preferred N/A |
|
|
|
|
|
|
|
|
|
Month #3
03/01/09 through
03/31/09
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common 3,050,236
Preferred N/A |
|
|
|
|
|
|
|
|
|
Month #4
04/01/09 through
04/30/09
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common 3,050,236
Preferred N/A |
|
|
|
|
|
|
|
|
|
Month #5
05/01/09 through
05/31/09
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common 3,050,236
Preferred N/A |
|
|
|
|
|
|
|
|
|
Month #6
06/01/09 through
06/30/09
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common 3,050,236
Preferred N/A |
|
|
|
|
|
|
|
|
|
Total
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
Common N/A
Preferred N/A
|
|
N/A |
Footnote columns (c) and (d) of the table, by disclosing the following information in the aggregate
for all plans or programs publicly announced:
a. |
|
The date each plan or program was announced The notice of the potential repurchase of
common and preferred shares occurs quarterly in the Funds 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 Funds common shares are trading at a discount of 10% or more from
the net asset value of the shares. |
|
|
|
Any or all preferred shares outstanding may be repurchased when the Funds 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 Funds repurchase plans are
ongoing. |
|
d. |
|
Each plan or program that has expired during the period covered by the table The Funds
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 Funds 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 registrants 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 registrants principal executive and principal financial officers, or persons
performing similar functions, have concluded that the registrants 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 registrants 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
registrants second fiscal quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrants internal control
over financial reporting. |
Item 12. Exhibits.
|
(a)(1) |
|
Not applicable. |
|
|
(a)(2) |
|
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the
Sarbanes-Oxley Act of 2002 are attached hereto. |
|
(a)(3) |
|
Not applicable. |
|
|
(b) |
|
Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-
Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
|
|
(registrant)
|
|
The Gabelli Global Utility & Income Trust |
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Bruce N. Alpert |
|
|
|
|
Bruce N. Alpert, Principal Executive Officer
|
|
|
Date 9/1/09
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 9/1/09
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Agnes Mullady |
|
|
|
|
Agnes Mullady, Principal Financial Officer and Treasurer
|
|
|
Date 9/1/09
|
|
|
* |
|
Print the name and title of each signing officer under his or her signature. |