N-Q 1 d96799dnq.htm GABELLI GLOBAL UTILITY & INCOME TRUST Gabelli Global Utility & 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             811-21529                    

                             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)

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

Date of fiscal year end: December 31

Date of reporting period: September 30, 2015

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 Utility & Income Trust

 

Third Quarter Report — September 30, 2015

  

LOGO

 

Mario J. Gabelli, CFA

Portfolio Manager

To Our Shareholders,

For the quarter ended September 30, 2015, the net asset value (“NAV”) total return of The Gabelli Global Utility & Income Trust (the “Fund”) was (6.4)%, compared with a total return of 5.4% for the Standard & Poor’s (“S&P”) 500 Utilities Index. The total return for the Fund’s publicly traded shares was (9.8)%. The Fund’s NAV per share was $19.55, while the price of the publicly traded shares closed at $16.10 on the New York Stock Exchange (“NYSE MKT”). See below for additional performance information.

Enclosed is the schedule of investments as of September 30, 2015.

Comparative Results

 

 

Average Annual Returns through September 30, 2015 (a) (Unaudited)

        
     Quarter      1 Year     5 Year      10 Year      Since
Inception
(05/28/04)
 

Gabelli Global Utility & Income Trust

             

NAV Total Return (b)

     (6.36)%          (3.99 )%      6.32%          5.50%          6.77%    

Investment Total Return (c)

     (9.83)             (10.54     2.63             4.90             5.05       

S&P 500 Utilities Index

     5.40              6.57        11.04             6.69             9.75       

Lipper Utility Fund Average

     (4.24)             (5.34     10.00             6.78             9.45       

S&P 500 Index

     (6.44)             (0.61     13.34             6.80             7.06       
  (a)

Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance 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 Utilities Index is an unmanaged indicator of electric and gas utility stock performance. The Lipper Utility Fund Average reflects the average performance of mutual funds classified in this particular category. The S&P 500 Index is an unmanaged indicator of stock market performance. Dividends are considered reinvested. You cannot invest directly in an index.

 
  (b)

Total returns and average annual returns reflect changes in the NAV per share, reinvestment of distributions at NAV on the ex-dividend date, and adjustments for the rights offering 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 MKT, reinvestment of distributions, and adjustments for the rights offering. Since inception return is based on an initial offering price of $20.00.

 


The Gabelli Global Utility & Income Trust

Schedule of Investments — September 30, 2015 (Unaudited)

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS — 85.3%   
  ENERGY AND UTILITIES — 42.0%   
  Alternative Energy — 0.4%   
  U.S. Companies   
  15,000      NextEra Energy Partners LP    $ 327,000   
  6,500      Ormat Technologies Inc.      221,195   
    

 

 

 
       548,195   
    

 

 

 
  Electric Transmission and Distribution — 3.9%   
  Non U.S. Companies   
  6,000      Algonquin Power & Utilities Corp.      42,443   
  10,000      Fortis Inc.      286,025   
  8,775      National Grid plc, ADR      611,003   
  5,000      Red Electrica Corporacion SA      414,222   
  U.S. Companies   
  3,000      Consolidated Edison Inc.      200,550   
  38,000      Pepco Holdings Inc.      920,360   
  6,500      Twin Disc Inc.      80,665   
  49,608      WEC Energy Group Inc.      2,590,530   
    

 

 

 
         5,145,798   
    

 

 

 
  Energy and Utilities: Integrated — 23.7%   
  Non U.S. Companies   
  150,000      A2A SpA      186,048   
  3,000      Areva SA†      23,231   
  13,000      BP plc, ADR      397,280   
  11,000      Chubu Electric Power Co. Inc.      161,472   
  152,000     

Datang International Power Generation Co. Ltd., Cl. H

     57,465   
  1,400      E.ON SE      12,010   
  8,000      E.ON SE, ADR      68,320   
  9,760      EDP - Energias de Portugal SA, ADR      354,874   
  10,000      Electric Power Development Co. Ltd.      303,839   
  5,500      Emera Inc.      182,454   
  8,000      Endesa SA      168,415   
  74,000      Enel SpA      329,760   
  28,000      Enersis SA, ADR      353,920   
  1,000      Eni SpA      15,700   
  217,100      Hera SpA      563,291   
  12,000      Hokkaido Electric Power Co. Inc.†      115,934   
  18,000      Hokuriku Electric Power Co.      240,970   
  17,000      Huaneng Power International Inc., ADR      719,100   
  99,906      Iberdrola SA      663,900   
  5,000      Iberdrola SA, ADR      132,950   
  34,000      Korea Electric Power Corp., ADR      696,660   
  22,000      Kyushu Electric Power Co. Inc.†      238,586   
  10,000      Shikoku Electric Power Co. Inc.      162,131   
  12,000      The Chugoku Electric Power Co. Inc.      164,748   
  18,000      The Kansai Electric Power Co. Inc.†      199,108   
  8,000      Tohoku Electric Power Co. Inc.      107,831   
  2,000      Verbund AG      26,527   

Shares

        

Market

Value

 
  U.S. Companies   
  2,000      ALLETE Inc.    $ 100,980   
  21,000      Ameren Corp.      887,670   
  30,000      American Electric Power Co. Inc.      1,705,800   
  5,000      Avista Corp.      166,250   
  5,500      Black Hills Corp.      227,370   
  45,638      Cleco Corp.      2,429,767   
  10,000      Dominion Resources Inc.      703,800   
  17,000      Duke Energy Corp.(a)      1,222,980   
  4,000      El Paso Electric Co.      147,280   
  40,000      Eversource Energy(a)      2,024,800   
  35,000      Great Plains Energy Inc.      945,700   
  16,000      Hawaiian Electric Industries Inc.      459,040   
  16,500      MGE Energy Inc.      679,635   
  14,000      NextEra Energy Inc.      1,365,700   
  45,000      NiSource Inc.      834,750   
  12,500      NorthWestern Corp.      672,875   
  39,000      OGE Energy Corp.      1,067,040   
  14,000      Otter Tail Corp.      364,840   
  1,000      PG&E Corp.      52,800   
  15,000      Pinnacle West Capital Corp.      962,100   
  7,000      PPL Corp.      230,230   
  29,000      Public Service Enterprise Group Inc.      1,222,640   
  18,000      SCANA Corp.      1,012,680   
  874      Talen Energy Corp.†      8,831   
  38,000      The AES Corp.      372,020   
  2,000      The Empire District Electric Co.      44,060   
  40,000      The Southern Co.      1,788,000   
  15,000      Vectren Corp.      630,150   
  36,000      Westar Energy Inc.      1,383,840   
  32,000      Xcel Energy Inc.      1,133,120   
    

 

 

 
         31,493,272   
    

 

 

 
  Natural Gas Integrated — 3.0%   
  Non U.S. Companies   
  80,000      Snam SpA      410,669   
  U.S. Companies   
  7,000      Anadarko Petroleum Corp.      422,730   
  4,000      Apache Corp.      156,640   
  15,000      CONSOL Energy Inc.      147,000   
  1,000      Energen Corp.      49,860   
  13,000      Kinder Morgan Inc.      359,840   
  30,000      National Fuel Gas Co.      1,499,400   
  4,000      ONEOK Inc.      128,800   
  30,000      Spectra Energy Corp.      788,100   
    

 

 

 
       3,963,039   
    

 

 

 
  Natural Gas Utilities — 3.1%   
  Non U.S. Companies   
  1,500      Enagas SA      42,942   
 

 

See accompanying notes to schedule of investments.

 

2


The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS (Continued)   
  ENERGY AND UTILITIES (Continued)   
  Natural Gas Utilities (Continued)   
  Non U.S. Companies (Continued)   
  1,890      Engie    $ 30,496   
  9,954      Engie, ADR      160,259   
  U.S. Companies   
  16,000      AGL Resources Inc.      976,640   
  10,000      Atmos Energy Corp.      581,800   
  2,400      Chesapeake Utilities Corp.      127,392   
  45,000      Columbia Pipeline Group Inc.      823,050   
  1,000      ONE Gas Inc.      45,330   
  4,500      Piedmont Natural Gas Co. Inc.      180,315   
  16,000      Southwest Gas Corp.      933,120   
  4,000      The Laclede Group Inc.      218,120   
    

 

 

 
         4,119,464   
    

 

 

 
  Oil — 0.7%   
  Non U.S. Companies   
  1,000      PetroChina Co. Ltd., ADR      69,700   
  10,000      Petroleo Brasileiro SA, ADR†      43,500   
  9,000     

Royal Dutch Shell plc, Cl. A, ADR

     426,510   
  U.S. Companies   
  11,000      Atlas Resource Partners LP      30,800   
  1,600      Chevron Corp.      126,208   
  2,000      ConocoPhillips      95,920   
  3,000      Devon Energy Corp.      111,270   
  1,000      Exxon Mobil Corp.      74,350   
    

 

 

 
       978,258   
    

 

 

 
  Services — 1.6%   
  Non U.S. Companies   
  10,000      ABB Ltd., ADR      176,700   
  115,000      Weatherford International plc†      975,200   
  U.S. Companies   
  10,000      AZZ Inc.      486,900   
  5,000      Cameron International Corp.†      306,600   
  3,500      Halliburton Co.      123,725   
  1,600      National Oilwell Varco Inc.      60,240   
    

 

 

 
       2,129,365   
    

 

 

 
  Water — 4.0%   
  Non U.S. Companies   
  5,000      Consolidated Water Co. Ltd.      58,000   
  115,000      Severn Trent plc      3,799,410   
  37,090      United Utilities Group plc      518,996   
  U.S. Companies   
  10,000      Aqua America Inc.      264,700   
  5,400      California Water Service Group      119,448   
  4,000      Middlesex Water Co.      95,360   

Shares

        

Market

Value

 
  17,000      SJW Corp.    $ 522,750   
    

 

 

 
       5,378,664   
    

 

 

 
  Diversified Industrial — 1.3%   
  Non U.S. Companies   
  9,000      Bouygues SA      319,098   
  15,800      Jardine Matheson Holdings Ltd.      746,550   
  17,000      Jardine Strategic Holdings Ltd.      456,280   
  U.S. Companies   
  7,000      General Electric Co.      176,540   
    

 

 

 
       1,698,468   
    

 

 

 
  Environmental Services — 0.2%   
  Non U.S. Companies   
  500      Suez Environnement Co.      8,956   
  12,000      Veolia Environnement SA      273,943   
    

 

 

 
       282,899   
    

 

 

 
 

Independent Power Producers and Energy
Traders — 0.1%

   

  U.S. Companies   
  9,000      NRG Energy Inc.      133,650   
    

 

 

 
  TOTAL ENERGY AND UTILITIES        55,871,072   
    

 

 

 
  COMMUNICATIONS — 27.6%   
  Cable and Satellite — 7.8%   
  Non U.S. Companies   
  10,000      Cogeco Inc.      399,775   
  6,782      Liberty Global plc, Cl. A†      291,219   
  17,630      Liberty Global plc, Cl. C†      723,183   
  339      Liberty Global plc LiLAC, Cl. A†      11,421   
  881      Liberty Global plc LiLAC, Cl. C†      30,165   
  59,000      Rogers Communications Inc., Cl. B      2,034,320   
  42,000      Sky plc      663,308   
  U.S. Companies   
  110,000      Cablevision Systems Corp., Cl. A      3,571,700   
  800      Charter Communications Inc., Cl. A†      140,680   
  12,000      Comcast Corp., Cl. A, Special      686,880   
  26,000      DISH Network Corp., Cl. A†      1,516,840   
  6,000      EchoStar Corp., Cl. A†      258,180   
  168      Liberty Broadband Corp., Cl. B†      8,586   
    

 

 

 
       10,336,257   
    

 

 

 
  Telecommunications — 14.9%   
  Non U.S. Companies   
  302      BCE Inc.      12,361   
  45,708      BCE Inc., Toronto      1,872,200   
  24,000      BT Group plc, ADR      1,530,000   
  40,000      Deutsche Telekom AG, ADR      710,800   
  29,651      Global Telecom Holding SAE, GDR†      34,099   
 

 

See accompanying notes to schedule of investments.

 

3


The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS (Continued)   
  COMMUNICATIONS (Continued)   
  Telecommunications (Continued)   
  Non U.S. Companies (Continued)   
  1,375,000      Koninklijke KPN NV    $ 5,137,832   
  15,000      Koninklijke KPN NV, ADR      57,000   
  11,000      Manitoba Telecom Services Inc.      231,622   
  5,000      Orange SA, ADR      75,600   
  29,651     

Orascom Telecom Media and Technology Holding SAE, GDR†

     17,791   
  90,000      Pharol SGPS SA†      26,851   
  13,000      Proximus      448,281   
  1,200      Swisscom AG      598,646   
  1,000      Swisscom AG, ADR      49,930   
  20,000      Telecom Italia SpA†      24,628   
  9,300      Telefonica Brasil SA, ADR      84,909   
  39,300      Telefonica Deutschland Holding AG      239,815   
  49,263      Telefonica SA, ADR      593,126   
  70,000      Telekom Austria AG      394,612   
  23,000      Telenet Group Holding NV†      1,317,656   
  18,000      VimpelCom Ltd., ADR      74,070   
  U.S. Companies   
  83,760      AT&T Inc.      2,728,901   
  21,000      CenturyLink Inc.      527,520   
  60,000      Cincinnati Bell Inc.†      187,200   
  20,000      Level 3 Communications Inc.†      873,800   
  35,045      Sprint Corp.†      134,573   
  1,000      T-Mobile US Inc.†      39,810   
  41,725      Verizon Communications Inc.      1,815,455   
    

 

 

 
       19,839,088   
    

 

 

 
  Wireless Communications — 4.9%   
  Non U.S. Companies   
  1,000      America Movil SAB de CV, Cl. L, ADR      16,550   
  2,500,000      Cable & Wireless Communications plc      2,095,152   
  30,700      Millicom International Cellular SA, SDR      1,918,303   
  4,000      Mobile TeleSystems PJSC, ADR      28,880   
  2,000      SK Telecom Co. Ltd., ADR      48,800   
  20,000      Turkcell Iletisim Hizmetleri A/S, ADR      173,600   
  62,000      Vodafone Group plc, ADR      1,967,880   
  U.S. Companies   
  7,500      United States Cellular Corp.†      265,725   
    

 

 

 
       6,514,890   
    

 

 

 
  TOTAL COMMUNICATIONS        36,690,235   
    

 

 

 
  OTHER — 15.7%   
  Aerospace — 1.4%   
  Non U.S. Companies   
  13,000      Airbus Group NV      768,585   

Shares

        

Market

Value

 
  101,300      Rolls-Royce Holdings plc    $ 1,037,442   
    

 

 

 
       1,806,027   
    

 

 

 
  Building and Construction — 0.0%   
  Non U.S. Companies   
  500      Acciona SA      35,366   
    

 

 

 
  Business Services — 0.7%   
  Non U.S. Companies   
  30,000      Sistema JSFC, GDR      206,400   
  U.S. Companies   
  23,000      Diebold Inc.      684,710   
    

 

 

 
       891,110   
    

 

 

 
  Consumer Products — 0.0%   
  U.S. Companies   
  1,000      The Procter & Gamble Co.      71,940   
    

 

 

 
  Electronics — 2.0%   
  Non U.S. Companies   
  110,000      Sony Corp., ADR†      2,695,000   
    

 

 

 
  Entertainment — 2.5%   
  Non U.S. Companies   
  20,000      Grupo Televisa SAB, ADR      520,400   
  118,000      Vivendi SA        2,786,073   
    

 

 

 
       3,306,473   
    

 

 

 
  Financial Services — 2.0%   
  Non U.S. Companies   
  5,000      Deutsche Bank AG      134,800   
  16,000      Kinnevik Investment AB, Cl. A      460,504   
  65,000      Resona Holdings Inc.      328,508   
  U.S. Companies   
  1,000      M&T Bank Corp.      121,950   
  9,500      National Interstate Corp.      253,460   
  10,000      The Bank of New York Mellon Corp.      391,500   
  1,000      The Goldman Sachs Group Inc.      173,760   
  15,000      The Hartford Financial Services Group Inc.      686,700   
  1,500      The PNC Financial Services Group Inc.      133,800   
  1,500      UGI Corp.      52,230   
    

 

 

 
       2,737,212   
    

 

 

 
  Food and Beverage — 4.6%   
  Non U.S. Companies   
  120      Chocoladefabriken Lindt & Sprungli AG      703,673   
  4,000      Chr. Hansen Holding A/S      223,442   
  65,000      Cott Corp.      703,950   
  40,000      Davide Campari-Milano SpA      318,237   
  1,000      Diageo plc      26,783   
 

 

See accompanying notes to schedule of investments.

 

4


The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS (Continued)   
  OTHER (Continued)   
  Food and Beverage (Continued)   
  Non U.S. Companies (Continued)   
  9,000      Diageo plc, ADR    $ 970,110   
  7,500      Heineken NV      605,410   
  17,000      Nestlé SA      1,277,704   
  2,100      Pernod Ricard SA      211,612   
  1,000      Yakult Honsha Co. Ltd.      49,514   
  U.S. Companies   
  6,000      General Mills Inc.      336,780   
  8,000      McCormick & Co. Inc., Non-Voting      657,440   
    

 

 

 
       6,084,655   
    

 

 

 
  Health Care — 0.9%   
  U.S. Companies   
  11,500      Johnson & Johnson      1,073,525   
  4,000      Owens & Minor Inc.      127,760   
    

 

 

 
       1,201,285   
    

 

 

 
  Hotels and Gaming — 0.8%   
  Non U.S. Companies   
  115,000      Genting Singapore plc      58,589   
  312,500      Mandarin Oriental International Ltd.      476,563   
  U.S. Companies   
  10,000      Ryman Hospitality Properties Inc.      492,300   
    

 

 

 
       1,027,452   
    

 

 

 
  Machinery — 0.1%   
  U.S. Companies   
  6,000      Xylem Inc.      197,100   
    

 

 

 
  Metals and Mining — 0.1%   
  U.S. Companies   
  5,000      Ampco-Pittsburgh Corp.      54,550   
  25,000      Peabody Energy Corp.      34,500   
    

 

 

 
       89,050   
    

 

 

 
  Real Estate — 0.2%   
  Non U.S. Companies   
  9,000     

Brookfield Asset Management Inc.,
Cl. A

     282,960   
    

 

 

 
  Specialty Chemicals — 0.2%   
  U.S. Companies   
  2,800      International Flavors & Fragrances Inc.      289,128   
    

 

 

 
  Transportation — 0.2%   
  U.S. Companies   
  6,000      GATX Corp.      264,900   
    

 

 

 
  TOTAL OTHER      20,979,658   
    

 

 

 
  TOTAL COMMON STOCKS        113,540,965   
    

 

 

 

Shares

        

Market

Value

 
  CONVERTIBLE PREFERRED STOCKS — 0.1%   
  COMMUNICATIONS — 0.1%   
  Telecommunications — 0.1%   
  U.S. Companies   
  1,600     

Cincinnati Bell Inc.,
6.750%, Ser. B

   $ 76,752   
    

 

 

 
  RIGHTS — 0.0%   
  OTHER — 0.0%   
  Retail — 0.0%   
  U.S. Companies   
  60,000     

Safeway Casa Ley, CVR,
expire 01/30/19†

     27,000   
  60,000      Safeway PDC, CVR, expire 01/30/17†      2,928   
    

 

 

 
       29,928   
    

 

 

 
  TOTAL OTHER      29,928   
    

 

 

 
  TOTAL RIGHTS      29,928   
    

 

 

 
  WARRANTS — 0.0%   
  COMMUNICATIONS — 0.0%   
  Wireless Communications — 0.0%   
  Non U.S. Companies   
  6,000      Bharti Airtel Ltd.,
expire 08/04/16†(b)
     30,906   
    

 

 

 

Principal

Amount

            
  CONVERTIBLE CORPORATE BONDS — 0.3%   
  OTHER — 0.3%   
  Building and Construction — 0.3%   
  U.S. Companies   
$ 500,000      Layne Christensen Co.   
 

4.250%, 11/15/18

     368,750   
    

 

 

 
  U.S. GOVERNMENT OBLIGATIONS — 14.3%   
  19,019,000      U.S. Treasury Bills,   
 

0.000% to 0.260%††

  
 

10/01/15 to 03/31/16(c)

     19,017,158   
    

 

 

 
  TOTAL INVESTMENTS — 100.0%   
 

(Cost $114,724,391)

   $ 133,064,459   
    

 

 

 
  Aggregate tax cost    $ 115,397,661   
    

 

 

 
  Gross unrealized appreciation    $ 29,150,319   
  Gross unrealized depreciation      (11,483,521
    

 

 

 
 

Net unrealized appreciation/depreciation

   $ 17,666,798   
    

 

 

 
 

 

See accompanying notes to schedule of investments.

 

5


The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

 

Notional
Amount

         

Termination

Date

   Unrealized
Appreciation
 
  

EQUITY CONTRACT FOR DIFFERENCE
SWAP AGREEMENTS

   

$     990,965      

Rolls-Royce Holdings plc(d)

   06/28/16    $  33,163   
        

 

 

 

 

    (100,000 Shares)

     

 

 

(a)

Securities, or a portion thereof, with a value of $1,103,040, were reserved and/or pledged with the custodian for equity contract for difference swap agreements.

(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 September 30, 2015, the market value of Rule 144A securities amounted to $30,906 or 0.02% of total investments.

(c)

At September 30, 2015, $400,000 of the principal amount was pledged as collateral for equity contract for difference swap agreements.

(d)

At September 30, 2015, the Fund had entered into equity contract for difference swap agreements with The Goldman Sachs Group, Inc.

Non-income producing security.

††

Represents annualized yield at date of purchase.

 

ADR

American Depositary Receipt

CVR

Contingent Value Right

GDR

Global Depositary Receipt

PJSC

Public Joint Stock Company

SDR

Swedish Depositary Receipt

 

Geographic Diversification

  

%of
Market
Value

   

Market
Value

 

North America

     62.9   $ 83,748,226   

Europe

     30.1        40,074,234   

Japan

     3.6        4,767,642   

Latin America

     2.1        2,830,742   

Asia/Pacific

     1.2        1,591,726   

Africa/Middle East

     0.1        51,889   

Total Investments

     100.0   $ 133,064,459   
 

 

See accompanying notes to schedule of investments.

 

6


The Gabelli Global Utility & Income Trust

Notes to Schedule of Investments (Unaudited)

 

 

 

As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its schedule of investments. 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 American Depositary Receipt 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 Board’s determinations as to the fair value of investments).

 

7


The Gabelli Global Utility & Income Trust

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

 

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, 2015 is as follows:

 

     Valuation Inputs         
     Level 1
Quoted Prices
     Level 2 Other Significant
Observable Inputs
     Level 3 Significant
Unobservable Inputs
     Total Market Value
at 09/30/15
 

INVESTMENTS IN SECURITIES:

           

ASSETS (Market Value):

           

Common Stocks (a)

     $113,540,965         —               —               $113,540,965     

Convertible Preferred Stocks (a)

     76,752         —               —               76,752     

Rights (a)

             —               $29,928               29,928     

Warrants (a)

             $       30,906               —               30,906     

Convertible Corporate Bonds (a)

             368,750               —               368,750     

U.S. Government Obligations

             19,017,158               —               19,017,158     

TOTAL INVESTMENTS IN SECURITIES – ASSETS

     $113,617,717         $19,416,814               $29,928               $133,064,459     

OTHER FINANCIAL INSTRUMENTS:*

           

Assets (Unrealized Appreciation):

           

EQUITY CONTRACT

           

Contract for Difference Swap Agreements

             $       33,163               —               $         33,163     

TOTAL OTHER FINANCIAL INSTRUMENTS:

             $       33,163               —               $         33,163     

 

(a)

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

*

Other financial instruments are derivatives reflected in the SOI, such as options, futures, forwards, and swaps, which may be valued at the unrealized appreciation/depreciation of the instrument.

The Fund did not have transfers among Level 1, Level 2, and Level 3 during the period ended September 30, 2015. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

The Fund did not have Level 3 investments at December 31, 2014.

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding

 

8


The Gabelli Global Utility & Income Trust

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

 

factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

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, 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. 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, 2015, 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 an equity contract for difference 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.

 

9


The Gabelli Global Utility & Income Trust

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

 

The Fund has entered into an equity contract for difference swap agreement with The Goldman Sachs Group, Inc. Details of the swap at September 30, 2015 are reflected within the Schedule of Investments and further details are as follows:

 

Notional Amount

  

Equity Security Received

  

Interest Rate/Equity Security Paid

  

Termination

Date

  

Net Unrealized
Appreciation

  

Market Value

Appreciation on:

   One month LIBOR plus 90 bps plus Market Value Depreciation on:      

$990,965 (100,000 Shares)

   Rolls-Royce Holdings plc    Rolls-Royce Holdings plc    6/28/16    33,163

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 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 Fund’s 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. At September 30, 2015, the Fund held no forward foreign exchange contracts.

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (“CFTC”). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future, the Fund

 

10


The Gabelli Global Utility & Income Trust

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

 

will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

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 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.

Restricted Securities. The Fund is not subject to an independent limitation on the amount it may invest in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. At September 30, 2015, the Fund held no investments in restricted securities.

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.

 

11


THE GABELLI GLOBAL UTILITY & INCOME TRUST

One Corporate Center

Rye, NY 10580-1422

Portfolio Manager Biography

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. that he founded in 1977 and Chief Investment Officer – Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

 

 

 

 

We have separated the portfolio manager’s 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 manager’s commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

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 “XGLUX.”

 

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 10% 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.


THE GABELLI GLOBAL UTILITY & INCOME TRUST

One Corporate Center

Rye, NY 10580-1422

t  800-GABELLI (800-422-3554)

f  914-921-5118

e  info@gabelli.com

    GABELLI.COM

 

 

 

TRUSTEES    OFFICERS

Anthony J. Colavita

President,

Anthony J. Colavita, P.C.

 

James P. Conn

Former Managing Director &

Chief Investment Officer,

Financial Security Assurance

Holdings Ltd.

 

Vincent D. Enright

Former Senior Vice President &

Chief Financial Officer,

KeySpan Corp.

 

Michael J. Melarkey

Of Counsel,

McDonald Carano Wilson LLP

 

Salvatore M. Salibello, CPA

Partner,

Salibello & Company

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

  

Bruce N. Alpert

President

 

Andrea R. Mango

Secretary & Vice President

 

Agnes Mullady

Treasurer

 

Richard J. Walz

Chief Compliance Officer

 

David I. Schachter

Vice President

 

Adam E. Tokar

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.

 

 

 

GLU Q3/2015

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 Utility & Income Trust

 

By (Signature and Title)*

 

  /s/ Bruce N. Alpert

 

      Bruce N. Alpert, Principal Executive Officer

 

Date

 

    11/25/2015

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

 

    11/25/2015

 

By (Signature and Title)*

 

  /s/ Agnes Mullady

 

       Agnes Mullady, Principal Financial Officer and Treasurer

 

Date

 

    11/25/2015

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