N-Q 1 d233081dnq.htm GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST <![CDATA[Gabelli Global Gold, Natural Resources & Income Trust]]>

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21698

 

 

The Gabelli Global Gold,

Natural Resources & Income Trust

(Exact name of registrant as specified in charter)

 

 

One Corporate Center

          Rye, New York 10580-1422          

(Address of principal executive offices) (Zip code)

 

 

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

    Rye, New York 10580-1422    

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 1-800-422-3554

Date of fiscal year end: December 31

Date of reporting period: September 30, 2011

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.


The Gabelli Global Gold, Natural Resources & Income Trust

Third Quarter Report — September 30, 2011

 

LOGO

Caesar Bryan

 

LOGO

Barbara G. Marcin, CFA

 

LOGO

Vincent Hugonnard-Roche

To Our Shareholders,

For the quarter ended September 30, 2011, the net asset value (“NAV”) total return of The Gabelli Global Gold, Natural Resources & Income Trust (the “Fund”) was (17.4)%, compared with the total returns of (11.1)% and (8.0)% for the Chicago Board Options Exchange (“CBOE”) Standard & Poor’s (“S&P”) 500 Buy/Write Index and the Philadelphia Gold & Silver Index, respectively. The total return for the Fund’s publicly traded shares was (17.1)%. On September 30, 2011, the Fund’s NAV per share was $14.09, while the price of the publicly traded shares closed at $14.35 on the NYSE Amex.

Enclosed is the schedule of investments as of September 30, 2011.

Comparative Results

 

 

Average Annual Returns through September 30, 2011 (a) (Unaudited)  
    Quarter       

 

Year to

Date

  

  

    1 Year        3 Year        5 Year       

 

 

Since

Inception

(03/31/05)

  

  

  

Gabelli Global Gold, Natural Resources & Income Trust

           

NAV Total Return (b)

    (17.36 )%      (16.99 )%      (8.28 )%      2.19     0.94     4.62

Investment Total Return (c)

    (17.11     (19.88     (9.38     (0.17     0.65        3.96   

CBOE S&P 500 Buy/Write Index

    (11.12     (8.97     (3.77     (1.42     (0.91     1.28   

Barclays Capital Government/Corporate Bond Index

    4.84        7.41        5.15        8.45        6.48        5.86   

Amex Energy Select Sector Index

    (22.02     (13.12     6.20        (0.94     3.59        6.64   

Philadelphia Gold & Silver Index

    (8.02     (18.35     (6.07     12.13        7.57        11.03   
  (a) Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods 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 CBOE S&P 500 Buy/Write Index is an unmanaged benchmark index designed to reflect the return on a portfolio that consists of a long position in the stocks in the S&P 500 Index and a short position in a S&P 500 (SPX) call option. The Philadelphia Gold & Silver Index is an unmanaged indicator of stock market performance of large North American gold and silver companies, while the Amex Energy Select Sector Index is an unmanaged indicator of stock market performance of large U.S. companies involved in the development or production of energy products. The Barclays Capital Government/Corporate Bond Index is an unmanaged market value weighted index that tracks the total return performance of fixed rate, publicly placed, dollar denominated obligations. Dividends and interest income are considered reinvested. You cannot invest directly in an index.  
  (b) Total returns and average annual returns reflect changes in the NAV per share and reinvestment of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is based on an initial NAV of $19.06.  
  (c) Total returns and average annual returns reflect changes in closing market values on the NYSE Amex and reinvestment of distributions. Since inception return is based on an initial offering price of $20.00.  

 

The Fund intends to generate current income from short-term gains primarily through its strategy of writing (selling) covered call options on the equity securities in its portfolio. Because of its primary strategy the Fund forgoes the opportunity to participate fully in the appreciation of the underlying equity security above the exercise price of the option. It also is subject to the risk of depreciation of the underlying equity security in excess of the premium received.


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

SCHEDULE OF INVESTMENTS

September 30, 2011 (Unaudited)

 

Shares

       

Market

Value

 
   
 

COMMON STOCKS — 79.7%

 
 

Energy and Energy Services — 34.2%

 
  250,000     

Anadarko Petroleum Corp.

  $ 15,762,500   
  159,500     

Apache Corp.

    12,798,280   
  416,325     

Baker Hughes Inc. (a)

    19,217,562   
  785,000     

BG Group plc

    15,197,620   
  135,000     

BP plc, ADR (a)

    4,869,450   
  520,000     

Cameron International Corp.†

    21,600,800   
  500,000     

Canadian Oil Sands Ltd.

    9,728,982   
  1,282,000     

Cheniere Energy Inc.†

    6,602,300   
  126,100     

Chevron Corp. (a)

    11,666,772   
  307,692     

Comanche Energy Inc.† (b)(c)(d)

    0   
  100,000     

ConocoPhillips (a)

    6,332,000   
  768,400     

CVR Energy Inc.†

    16,243,976   
  343,500     

Denbury Resources Inc.†

    3,950,250   
  460,000     

El Paso Corp.

    8,040,800   
  150,000     

EOG Resources Inc.

    10,651,500   
  65,000     

Galp Energia SGPS SA, Cl. B

    1,196,527   
  536,600     

Halliburton Co. (a)

    16,377,032   
  140,000     

Hess Corp.

    7,344,400   
  250,000     

Marathon Petroleum Corp.

    6,765,000   
  180,000     

Nabors Industries Ltd.†

    2,206,800   
  315,000     

National Oilwell Varco Inc.

    16,134,300   
  550,000     

Nexen Inc.

    8,519,500   
  142,000     

Noble Energy Inc.

    10,053,600   
  50,000     

Occidental Petroleum Corp.

    3,575,000   
  137,500     

Oil States International Inc.†

    7,001,500   
  582,000     

Petroleo Brasileiro SA, ADR (a)

    13,065,900   
  200,000     

Rowan Companies Inc.† (a)

    6,038,000   
  168,000     

Royal Dutch Shell plc, Cl. A

    5,239,604   
  160,000     

Schlumberger Ltd.

    9,556,800   
  250,000     

Statoil ASA, ADR

    5,387,500   
  869,500     

Suncor Energy Inc. (a)

    22,120,080   
  660,000     

Talisman Energy Inc.

    8,098,200   
  910,000     

The Williams Companies Inc. (a)

    22,149,400   
  510,000     

Total SA, ADR

    22,373,700   
  123,200     

Transocean Ltd. (a)

    5,881,568   
  500,000     

Valero Energy Corp.

    8,890,000   
  1,235,500     

Weatherford International Ltd.† (a)

    15,085,455   
   

 

 

 
      385,722,658   
   

 

 

 
 

Metals and Mining — 45.5%

 
  719,000     

Agnico-Eagle Mines Ltd. (a)

    42,794,880   
  393,000     

Anglo American plc

    13,660,350   
  633,500     

AngloGold Ashanti Ltd., ADR (a)

    26,201,560   
  439,000     

Antofagasta plc

    6,342,627   
  636,000     

Barrick Gold Corp. (a)

    29,669,400   
  177,000     

BHP Billiton Ltd., ADR (a)

    11,759,880   
  1,070,000     

Centamin Egypt Ltd.†

    1,623,533   
  300,000     

Compania de Minas Buenaventura SA, ADR

    11,322,000   
  83,000     

Detour Gold Corp.†

    2,162,325   

Shares

       

Market

Value

 
   
  1,000,000     

Duluth Metals Ltd.†

  $ 2,204,409   
  700,000     

Eldorado Gold Corp.

    12,057,448   
  375,000     

Franco-Nevada Corp.

    13,566,419   
  440,000     

Freeport-McMoRan Copper & Gold Inc. (a)

    13,398,000   
  658,500     

Fresnillo plc

    16,286,140   
  410,000     

Gem Diamonds Ltd.†

    1,335,616   
  1,988,400     

Gold Fields Ltd., ADR (a)

    30,462,288   
  580,000     

Goldcorp Inc. (a)

    26,471,200   
  841,600     

Harmony Gold Mining Co. Ltd., ADR (a)

    9,871,968   
  1,779,700     

Hochschild Mining plc

    11,350,874   
  160,000     

HudBay Minerals Inc.

    1,491,745   
  195,000     

Hummingbird Resources plc†

    440,922   
  285,000     

IAMGOLD Corp.

    5,637,300   
  412,000     

Impala Platinum Holdings Ltd.

    8,380,829   
  213,542     

Ivanhoe Mines Ltd.†

    2,925,525   
  200,000     

Kingsgate Consolidated Ltd.

    1,389,614   
  1,035,500     

Kinross Gold Corp., New York (a)

    15,304,690   
  3,592     

Kinross Gold Corp., Toronto

    53,371   
  250,600     

Lundin Mining Corp., OTC† (a)

    877,100   
  1,400,000     

Lundin Mining Corp., Toronto†

    4,876,420   
  221,000     

MAG Silver Corp.†

    1,729,363   
  934,725     

Newcrest Mining Ltd. (b)

    30,715,064   
  539,500     

Newmont Mining Corp. (a)

    33,934,550   
  750,000     

Northgate Minerals Corp.†

    2,475,000   
  165,000     

Osisko Mining Corp.†

    2,089,465   
  3,247,511     

PanAust Ltd.†

    7,982,229   
  211,300     

Peabody Energy Corp. (a)

    7,158,844   
  230,000     

Randgold Resources Ltd., ADR (a)

    22,245,600   
  3,851,298     

Red 5 Ltd.†

    633,572   
  6,984,000     

Red 5 Ltd., ASE†

    1,148,929   
  250,000     

Rio Tinto plc, ADR (a)

    11,020,000   
  1,800,000     

Romarco Minerals Inc.†

    2,044,088   
  259,200     

Royal Gold Inc.

    16,604,352   
  621,250     

Sandfire Resources NL†

    3,637,153   
  500,000     

SEMAFO Inc.†

    4,127,302   
  457,015     

Vale SA, ADR (a)

    10,419,942   
  207,000     

Witwatersrand Consolidated Gold Resources Ltd.†

    1,204,904   
  1,008,305     

Xstrata plc

    12,905,905   
  1,200,000     

Yamana Gold Inc. (a)

    16,392,000   
   

 

 

 
      512,386,695   
   

 

 

 
 

TOTAL COMMON STOCKS

    898,109,353   
   

 

 

 
 

CONVERTIBLE PREFERRED STOCKS — 0.3%

  

 

Metals and Mining — 0.3%

 
  10,000     

Vale Capital II, 6.750%, Cv. Pfd., Ser. VALE

    647,000   
  35,000     

Vale Capital II, 6.750%, Cv. Pfd., Ser. VALP

    2,362,500   
   

 

 

 
 

TOTAL CONVERTIBLE PREFERRED STOCKS

    3,009,500   
   

 

 

 
 

WARRANTS — 0.1%

 
 

Energy and Energy Services — 0.0%

 
  34,091     

Comanche Energy Inc., Cl. A, expire 06/18/13† (b)(c)(d)

    0   
 

 

See accompanying notes to schedule of investments.

 

2


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

SCHEDULE OF INVESTMENTS (Continued)

September 30, 2011 (Unaudited)

 

Shares

       

Market

Value

 
   
 

WARRANTS (Continued)

 
 

Energy and Energy Services (Continued)

 
  36,197     

Comanche Energy Inc., Cl. B,
expire 06/18/13† (b)(c)(d)

  $ 0   
  82,965     

Comanche Energy Inc., Cl. C,
expire 06/18/13† (b)(c)(d)

    0   
   

 

 

 
      0   
   

 

 

 
 

Metals and Mining — 0.1%

  

  66,667     

Duluth Metals Ltd., expire 01/18/13† (b)

    0   
  62,500     

Franco-Nevada Corp., expire 03/13/12† (b)

    405,573   
  87,500     

Franco-Nevada Corp., expire 06/16/17†

    546,927   
   

 

 

 
      952,500   
   

 

 

 
 

TOTAL WARRANTS

    952,500   
   

 

 

 

Principal
Amount

       

Market
Value

 
 

CONVERTIBLE CORPORATE BONDS — 0.3%

  

 

Metals and Mining — 0.3%

 
$ 2,800,000     

Detour Gold Corp., Cv.,
5.500%, 11/30/17 (b)

  $ 3,060,204   
  725,000  (f)   

Wesdome Gold Mines Ltd., Deb. Cv., 7.000%, 05/31/12 (b)(d)(e)

    712,616   
   

 

 

 
 

TOTAL CONVERTIBLE CORPORATE BONDS

    3,772,820   
   

 

 

 
 

CORPORATE BONDS — 0.5%

  

 

Energy and Energy Services — 0.1%

  

  5,011,673     

Comanche Energy Inc., PIK,
15.500%, 06/13/13 (b)(c)(d)

    43,047   
  500,000     

Tesoro Corp.,
9.750%, 06/01/19

    542,500   
   

 

 

 
      585,547   
   

 

 

 
 

Metals and Mining — 0.4%

 
  5,000,000     

Xstrata Canada Corp.,
7.250%, 07/15/12

    5,217,080   
   

 

 

 
 

TOTAL CORPORATE BONDS

    5,802,627   
   

 

 

 
 

U.S. GOVERNMENT OBLIGATIONS — 19.1%

  

  215,612,000     

U.S. Treasury Bills,
0.000% to 0.110%††,
10/20/11 to 03/29/12 (a)

    215,588,830   
   

 

 

 
 

TOTAL INVESTMENTS — 100.0% (Cost $1,269,230,572)

  $ 1,127,235,630   
   

 

 

 
 

Aggregate tax cost

  $ 1,281,845,026   
   

 

 

 
 

Gross unrealized appreciation

  $ 49,650,036   
 

Gross unrealized depreciation

    (204,259,432
   

 

 

 
 

Net unrealized appreciation/depreciation

  $ (154,609,396
   

 

 

 

Number of
Contracts

       

Expiration Date/
Exercise Price

   

Market
Value

 
     
 

OPTION CONTRACTS WRITTEN (g) — (3.8)%

  

 

Call Options Written — (2.4)%

  

  7,190     

Agnico-Eagle Mines Ltd.

    Jan. 12/80      $ 740,570   
  2,500     

Anadarko Petroleum Corp.

    Nov. 11/75        517,500   
  393     

Anglo American plc (h)

    Dec. 11/2500        59,140   
  6,335     

AngloGold Ashanti Ltd., ADR

    Jan. 12/55        411,775   
  418     

Antofagasta plc (h)

    Dec. 11/1200        157,254   
  595     

Apache Corp.

    Jan. 12/100        132,685   
  1,000     

Apache Corp.

    Jan. 12/115        55,500   
  3,263     

Baker Hughes Inc.

    Jan. 12/62.50        360,561   
  900     

Baker Hughes Inc.

    Jan. 12/70        38,700   
  6,360     

Barrick Gold Corp.

    Jan. 12/60        629,640   
  460     

BG Group plc (h)

    Mar. 12/1400        548,755   
  325     

BG Group plc (h)

    Mar. 12/1500        252,136   
  1,770     

BHP Billiton Ltd., ADR

    Jan. 12/70        1,017,750   
  1,350     

BP plc, ADR

    Jan. 12/44        101,250   
  1,100     

Cameron International Corp.

    Nov. 11/55        41,250   
  4,100     

Cameron International Corp.

    Jan. 12/55        420,250   
  5,000     

Canadian Oil Sands Ltd. (i)

    Jan. 12/25        190,858   
  3,000     

Cheniere Energy Inc.

    Dec. 11/12        30,000   
  2,000     

Cheniere Energy Inc.

    Dec. 11/13        15,000   
  4,000     

Cheniere Energy Inc.

    Dec. 11/15        28,000   
  820     

Cheniere Energy Inc.

    Mar. 12/12        22,550   
  3,000     

Cheniere Energy Inc.

    Mar. 12/13        60,000   
  1,261     

Chevron Corp.

    Dec. 11/100        375,778   
  1,800     

Compania de Minas Buenaventura SA, ADR

    Dec. 11/45        270,000   
  1,200     

Compania de Minas Buenaventura SA, ADR

    Dec. 11/46        153,000   
  1,000     

ConocoPhillips

    Jan. 12/67.50        325,000   
  2,184     

CVR Energy Inc.

    Dec. 11/25        327,600   
  5,500     

CVR Energy Inc.

    Mar. 12/25        1,375,000   
  3,435     

Denbury Resources Inc.

    Dec. 11/20        17,175   
  2,000     

El Paso Corp.

    Oct. 11/20        20,000   
  2,600     

El Paso Corp.

    Dec. 11/21        114,634   
  3,500     

Eldorado Gold Corp. (i)

    Jan. 12/20        440,882   
  3,500     

Eldorado Gold Corp. (i)

    Jan. 12/23        212,091   
  1,500     

EOG Resources Inc.

    Oct. 11/100        1,500   
  3,750     

Franco-Nevada Corp. (i)

    Oct. 11/36        921,486   
  4,400     

Freeport-McMoRan Copper & Gold Inc.

    Jan. 12/39.50        598,400   
  19,884     

Gold Fields Ltd., ADR

    Jan. 12/20        666,114   
  500     

Goldcorp Inc.

    Oct. 11/55        10,000   
  2,300     

Goldcorp Inc.

    Jan. 12/55        434,700   
  3,000     

Goldcorp Inc.

    Jan. 12/60        336,000   
  500     

Halliburton Co.

    Oct. 11/52.50        2,000   
  4,866     

Halliburton Co.

    Jan. 12/50        107,052   
  5,000     

Harmony Gold Mining Co. Ltd., ADR

    Nov. 11/15        100,000   
  3,416     

Harmony Gold Mining Co. Ltd., ADR

    Feb. 12/15        170,800   
  500     

Hess Corp.

    Nov. 11/62.50        65,000   
 

 

See accompanying notes to schedule of investments.

 

3


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

Schedule of Investments (Continued)

September 30, 2011 (Unaudited)

 

Number of
Contracts

       

Expiration Date/
Exercise Price

   

Market
Value

 
     
 

OPTION CONTRACTS WRITTEN (Continued)

  

 

Call Options Written (Continued)

  

 
  400     

Hess Corp.

    Nov. 11/75      $ 5,600   
  500     

Hess Corp.

    Jan. 12/65        118,500   
  1,450     

IAMGOLD Corp.

    Dec. 11/20        279,125   
  1,400     

IAMGOLD Corp.

    Jan. 12/20        318,500   
  2,135     

Ivanhoe Mines Ltd.

    Dec. 11/23        117,425   
  8,880     

Kinross Gold Corp.

    Nov. 11/17        399,600   
  614     

Kinross Gold Corp.

    Jan. 12/20        23,946   
  897     

Kinross Gold Corp.

    Feb. 12/21        33,638   
  16,506     

Lundin Mining Corp.(i)

    Jan. 12/6        126,012   
  1,500     

Marathon Petroleum Corp.

    Oct. 11/45        15,000   
  1,000     

Marathon Petroleum Corp.

    Jan. 12/40        45,000   
  1,800     

Nabors Industries Ltd.

    Jan. 12/26        9,000   
  1,750     

National Oilwell Varco Inc.

    Jan. 12/67.50        295,750   
  2,100     

National Oilwell Varco Inc.

    Feb. 12/77.50        169,050   
  6,745     

Newcrest Mining Ltd.(j)

    Dec. 11/41        326,356   
  2,600     

Newcrest Mining Ltd.(j)

    Jan. 12/42.50        105,396   
  1,975     

Newmont Mining Corp.

    Jan. 12/67.50        878,875   
  3,420     

Newmont Mining Corp.

    Jan. 12/70        1,085,850   
  3,500     

Nexen Inc.

    Dec. 11/19        157,500   
  1,000     

Nexen Inc.

    Dec. 11/20        25,000   
  1,000     

Nexen Inc.

    Dec. 11/21        15,000   
  710     

Noble Energy Inc.

    Nov. 11/80        159,750   
  710     

Noble Energy Inc.

    Nov. 11/82.50        108,275   
  500     

Occidental Petroleum Corp.

    Feb. 12/75        353,750   
  1,375     

Oil States International Inc.

    Dec. 11/55        639,375   
  2,500     

PanAust Ltd.(j)

    Feb. 12/4.20        484   
  1,000     

Peabody Energy Corp.

    Dec. 11/50        31,000   
  1,113     

Peabody Energy Corp.

    Mar. 12/46        192,549   
  3,000     

Petroleo Brasileiro SA, ADR

    Jan. 12/36        12,000   
  2,820     

Petroleo Brasileiro SA, ADR

    Jan. 12/37        5,640   
  800     

Randgold Resources Ltd., ADR

    Jan. 12/110        404,000   
  1,500     

Randgold Resources Ltd., ADR

    Jan. 12/120        412,500   
  2,500     

Rio Tinto plc, ADR

    Jan. 12/50        900,000   
  2,000     

Rowan Companies Inc.

    Jan. 12/39        210,000   
  168     

Royal Dutch Shell plc(h)

    Dec. 11/2200        69,425   
  2,092     

Royal Gold Inc.

    Oct. 11/60        1,234,280   
  500     

Royal Gold Inc.

    Oct. 11/65        150,000   
  800     

Schlumberger Ltd.

    Jan. 12/75        136,800   
  800     

Schlumberger Ltd.

    Feb. 12/90        38,400   
  2,500     

Statoil ASA, ADR

    Jan. 12/25        190,000   
  7,026     

Suncor Energy Inc.

    Dec. 11/40        59,721   
  1,700     

Suncor Energy Inc.

    Jan. 12/42        18,700   
  6,500     

Talisman Energy Inc.

    Oct. 11/19        65,000   
  2,200     

The Williams Companies Inc.

    Nov. 11/27        244,200   
  3,300     

The Williams Companies Inc.

    Nov. 11/28        306,900   
  3,600     

The Williams Companies Inc.

    Nov. 11/29        234,000   
  5,100     

Total SA, ADR

    Jan. 12/50        714,000   

Number of
Contracts

       

Expiration Date/
Exercise Price

   

Market
Value

 
     
  432     

Transocean Ltd.

    Feb. 12/62.50      $ 64,584   
  800     

Transocean Ltd.

    Feb. 12/67.50        65,200   
  2,570     

Vale SA, ADR

    Jan. 12/25        358,515   
  2,000     

Vale SA, ADR

    Mar. 12/30        118,000   
  5,000     

Valero Energy Corp.

    Jan. 12/25        212,500   
  12,355     

Weatherford International Ltd.

    Jan. 12/19        259,455   
  315     

Xstrata plc(h)

    Dec. 11/920        243,150   
  693     

Xstrata plc(h)

    Dec. 11/1100        162,100   
  12,000     

Yamana Gold Inc.

    Apr. 12/20        726,000   
     

 

 

 

 
 

TOTAL CALL OPTIONS WRITTEN
(Premiums received $45,181,837)

 
  

    26,525,712   
     

 

 

 

 

Put Options Written — (1.4)%

   
  500     

Atwood Oceanics Inc.

    Dec. 11/40        350,000   
  500     

Cameron International Corp.

    Nov. 11/45        300,000   
  3,000     

Canadian Oil Sands Ltd.(i)

    Jan. 12/20        522,474   
  6,000     

Cheniere Energy Inc.

    Dec. 11/7        1,455,000   
  1,400     

Denbury Resources Inc.

    Dec. 11/17        784,000   
  3,000     

Denbury Resources Inc.

    Mar. 12/15        1,200,000   
  300     

EOG Resources Inc.

    Jan. 12/90        641,250   
  6,000     

Gold Fields Ltd., ADR

    Jan. 12/14        636,000   
  1,400     

Halliburton Co.

    Apr. 12/30        700,000   
  500     

Hess Corp.

    Jan. 12/47.50        217,500   
  500     

Hess Corp.

    Jan. 12/50        268,750   
  2,000     

Nabors Industries Ltd.

    Dec. 11/24        2,315,000   
  1,000     

Nexen Inc.

    Dec. 11/20        470,000   
  300     

Occidental Petroleum Corp.

    Jan. 12/80        392,250   
  330     

Oil Service HOLDRS (SM) Trust

    Jan. 12/104.10        363,000   
  1,000     

Randgold Resources Ltd., ADR

    Mar. 12/95        1,115,000   
  800     

Schlumberger Ltd.

    Feb. 12/60        632,000   
  700     

Suncor Energy Inc.

    Dec. 11/38        868,000   
  900     

Talisman Energy Inc.

    Oct. 11/22        900,000   
  2,000     

The Williams Companies Inc.

    Nov. 11/27        755,000   
  900     

Total SA, ADR

    Nov. 11/52.50        796,500   
  2,000     

Weatherford International Ltd.

    Nov. 11/15        640,000   
     

 

 

 

 
 

TOTAL PUT OPTIONS WRITTEN
(Premiums received $6,726,621)

 
  

    16,321,724   
     

 

 

 

 
 

TOTAL OPTIONS CONTRACTS WRITTEN
(Premiums received $51,908,458)

 
  

  $ 42,847,436   
     

 

 

 
 

Aggregate premiums

  

  $ 51,908,458   
     

 

 

 
 

Gross unrealized appreciation

  

  $ 20,348,418   
 

Gross unrealized depreciation

  

    (11,287,396
     

 

 

 
 

Net unrealized appreciation/depreciation

  

  $ 9,061,022   
     

 

 

 
 

 

See accompanying notes to schedule of investments.

 

4


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

Schedule of Investments (Continued)

September 30, 2011 (Unaudited)

 

 

(a) Securities, or a portion thereof, with a value of $345,249,706 were pledged as collateral for options written.
(b) 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 September 30, 2011, the market value of fair valued securities amounted to $34,936,504 or 3.10% of total investments.
(c) At September 30, 2011, the Fund held investments in restricted securities amounting to $43,047 or 0.00% of total investments, which were valued under methods approved by the Board of Trustees as follows:

 

Acquisition
Shares/
Principal
Amount

   

Issuer

 

Acquisition
Date

   

Acquisition
Cost

   

09/30/11
Carrying
Value
Per Unit

 
  307,692     

Comanche Energy Inc.

    06/17/08      $ 1,849,998          
  34,091     

Comanche Energy Inc., Cl. A, Warrants expire 06/18/13

    06/17/08        93,750          
  36,197     

Comanche Energy Inc., Cl. B, Warrants expire 06/18/13

    06/17/08        93,750          
  82,965     

Comanche Energy Inc., Cl. C, Warrants expire 06/18/13

    06/17/08        187,501          
$ 5,011,673     

Comanche Energy Inc., PIK, 15.500%, 06/13/13

    06/17/08        4,786,673      $ 0.8589   

 

(d) Illiquid security.
(e) 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 September 30, 2011, the market value of the Rule 144A security amounted to $712,616 or 0.06% of total investments.
(f) Principal amount denoted in Canadian dollars.
(g) At September 30, 2011, the Fund has entered into over-the-counter Option Contracts Written with Pershing LLC and Morgan Stanley.
(h) Exercise price denoted in British Pounds.
(i) Exercise price denoted in Canadian dollars.
(j) Exercise price denoted in Australian dollars.
Non-income producing security.
†† Represents annualized yield at date of purchase.
ADR American Depositary Receipt
PIK Payment-in-kind

Geographic Diversification

  

% of
Market
Value

   

Market
Value

 

Long Positions

    

North America

     69.3   $ 781,380,507   

Europe

     13.7        154,533,318   

South Africa

     6.8        76,121,549   

Asia/Pacific

     5.2        58,889,974   

Latin America

     5.0        56,310,282   
  

 

 

   

 

 

 

Total Investments

     100.0   $ 1,127,235,630   
  

 

 

   

 

 

 

Short Positions

    

North America

     (3.1 )%    $ (35,248,324

Europe

     (0.3     (3,397,661

Latin America

     (0.2     (2,450,640

South Africa

     (0.1     (1,318,575

Asia/Pacific

     (0.1     (432,236
  

 

 

   

 

 

 

Total Investments

     (3.8 )%    $ (42,847,436
  

 

 

   

 

 

 
 

 

See accompanying notes to schedule of investments.

 

5


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

 

The Fund’s schedule of investments is prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), which may require the use of management estimates and assumptions. 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 schedule of investments.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of 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. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.

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.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

 

   

Level 1 – quoted prices in active markets for identical securities;

 

   

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 Fund’s determinations as to the fair value of investments).

 

6


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. 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 Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of September 30, 2011 is as follows:

 

    Valuation Inputs        
    Level 1
Quoted
Prices
    Level 2
Other Significant
Observable Inputs
    Level 3
Other Significant
Unobservable Inputs
    Total
Market Value
at 9/30/11
 

INVESTMENTS IN SECURITIES:

       

ASSETS (Market Value):

       

Common Stocks:

       

Energy and Energy Services

  $ 385,722,658             $ 0      $ 385,722,658   

Metals and Mining

    481,671,631      $ 30,715,064               512,386,695   

Total Common Stocks

    867,394,289        30,715,064        0        898,109,353   

Convertible Preferred Stocks (a)

    3,009,500                      3,009,500   

Warrants:

       

Energy and Energy Services

                  0        0   

Metals and Mining

    952,500               0        952,500   

Total Warrants

    952,500               0        952,500   

Convertible Corporate Bonds

    3,772,820                      3,772,820   

Corporate Bonds (a)

           5,759,580        43,047        5,802,627   

U.S. Government Obligations

           215,588,830               215,588,830   

TOTAL INVESTMENTS IN SECURITIES – ASSETS

  $ 875,129,109      $ 252,063,474      $ 43,047      $ 1,127,235,630   

INVESTMENTS IN SECURITIES:

       

LIABILITIES (Market Value):

       

EQUITY CONTRACTS:

       

Call Options Written

  $ (15,554,747   $ (10,970,965   $      $ (26,525,712

Put Options Written

    (9,173,974     (7,147,750            (16,321,724

TOTAL INVESTMENTS IN SECURITIES – LIABILITIES

  $ (24,728,721   $ (18,118,715   $      $ (42,847,436

 

(a) Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

The Fund did not have significant transfers between Level 1 and Level 2 during the period ended September 30, 2011.

 

7


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

 

The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:

 

    

Balance

as of

12/31/10

    Accrued
discounts/
(premiums)
    Realized
gain/
(loss)
    Change in
unrealized
appreciation/
depreciation
    Purchases     Sales     Transfers
into
Level 3†
   

Transfers

out of Level
3†

    Balance
as of
9/30/11
   

Net change in
unrealized
appreciation/

depreciation
during the
period
on Level 3
investments
held at
9/30/11

 

INVESTMENTS IN SECURITIES:

                   

ASSETS (Market Value):

                   

Common Stocks:

                   

Energy and Energy Services

  $ 0      $      $      $      $      $      $      $      $ 0      $   

Warrants:

                   

Energy and Energy Services

    0                                                         0          

Metals and Mining

                                0                             0          

Convertible Corporate Bonds

    3,419,897                                                  (3,419,897              

Corporate Bonds

    43,047        33,731               (573,942     540,211                             43,047        (573,942

TOTAL INVESTMENTS IN SECURITIES

  $ 3,462,944      $ 33,731      $      $ (573,942   $ 540,211      $      $      $ (3,419,897   $ 43,047      $ (573,942

 

The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period.

In May 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”).” ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity, and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers into and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.

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 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

 

8


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

 

Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase 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 inability 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 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.

Derivative Financial Instruments.  The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of increasing the income of the Fund. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

The Fund’s derivative contracts held at September 30, 2011, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

Swap Agreements.  The Fund may enter into equity 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 an equity contract for difference swap, a set of future cash flows is 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. Depending on the general state of short-term interest rates and the returns on the Fund’s portfolio securities at the time a 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. At September 30, 2011, the Fund held no investments in equity contract for difference swap agreements.

Options.  The Fund may purchase or write call or put options on securities or indices for the purpose of achieving additional return or for hedging the value of the Fund’s portfolio. As a writer of put options, the Fund receives a premium at the outset and then bears the risk of unfavorable changes in the price of the financial instrument underlying the option.

 

9


THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

 

The Fund would incur a loss if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. The Fund would realize a gain, to the extent of the premium, if the price of the financial instrument increases between those dates. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a written put option is exercised, the premium reduces the cost basis of the security.

As a purchaser of put options, the Fund pays a premium for the right to sell to the seller of the put option the underlying security at a specified price. The seller of the put has the obligation to purchase the underlying security upon exercise at the exercise price. If the price of the underlying security declines, the Fund would realize a gain upon sale or exercise. If the price of the underlying security increases or stays the same, the Fund would realize a loss upon sale or at the expiration date, but only to the extent of the premium paid.

In the case of call options, these exercise prices are referred to as “in-the-money,” “at-the-money,” and “out-of-the-money,” respectively. The Fund may write (a) in-the-money call options when the Adviser expects that the price of the underlying security will remain stable or decline during the option period, (b) at-the-money call options when the Adviser expects that the price of the underlying security will remain stable, decline, or advance moderately during the option period, and (c) out-of-the-money call options when the Adviser expects that the premiums received from writing the call option will be greater than the appreciation in the price of the underlying security above the exercise price. By writing a call option, the Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the reverse of call options as to the relation of exercise price to market price) may be utilized in the same market environments that such call options are used in equivalent transactions. Option positions at September 30, 2011 are reflected within the Schedule of Investments.

The following table summarizes the market value of derivatives held at September 30, 2011 by primary risk exposure:

 

Liability Derivatives:

   Market Value  

Equity Contracts

   $ (42,847,436

Tax Information.  The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carryforward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. In addition, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

 

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.

 

10


LOGO

TRUSTEES AND OFFICERS

THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST

One Corporate Center, Rye, NY 10580-1422

 

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 d’Urso

Former Italian Senator

Vincent D. Enright

Former Senior Vice President &

Chief Financial Officer,

KeySpan Corp.

Frank J. Fahrenkopf, Jr.

President & Chief Executive Officer,

American Gaming Association

Michael J. Melarkey

Attorney-at-Law,

Avansino, Melarkey, Knobel & Mulligan

Salvatore M. Salibello

Certified Public Accountant,

Salibello & Broder, LLP

Anthonie C. van Ekris

Chairman, BALMAC International, Inc.

Salvatore J. Zizza

Chairman, Zizza & Co., Ltd.

Officers

Bruce N. Alpert

President

Carter W. Austin

Vice President

Peter D. Goldstein

Chief Compliance Officer

Molly A.F. Marion

Vice President & Ombudsman

Laurissa M. Martire

Vice President & Ombudsman

David I. Schachter

Vice President

Agnes Mullady

Treasurer & Secretary

Investment Adviser

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

Custodian

The Bank of New York Mellon

Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

Transfer Agent and Registrar

American Stock Transfer and Trust Company

Stock Exchange Listing

 

      

Common

    

6.625%

Preferred

NYSE Amex–Symbol:

     GGN      GGN PrA

Shares Outstanding:

     69,969,179      3,955,687
 

 

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “Specialized Equity Funds.”

The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

The NASDAQ symbol for the Net Asset Value is “XGGNX.”

 

For general information about the Gabelli Funds, call 800-GABELLI (800-422-3554), fax us at 914-921-5118, visit Gabelli Funds’ Internet homepage at: www.gabelli.com, or e-mail us at: closedend@gabelli.com

 

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may, from time to time, purchase its common shares in the open market when the Fund’s shares are trading at a discount of 7.5% or more from the net asset value of the shares. The Fund may also, from time to time, purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.


LOGO

 


Item 2. Controls and Procedures.

 

  (a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)    The Gabelli Global Gold, Natural Resources & Income Trust

 

By (Signature and Title)*   /s/  Bruce N.Alpert
  Bruce N. Alpert, Principal Executive Officer

 

Date    11/29/11

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    11/29/11

 

By (Signature and Title)*   /s/  Agnes Mullady
  Agnes Mullady, Principal Financial Officer and Treasurer

 

Date    11/29/11

* Print the name and title of each signing officer under his or her signature.