UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21529
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The Gabelli Global Utility & Income Trust
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: June 30, 2005
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[LOGO OMITTED]
THE GABELLI
GLOBAL UTILITY
& INCOME TRUST
THE GABELLI GLOBAL UTILITY & INCOME TRUST
Semi-Annual Report
June 30, 2005
TO OUR SHAREHOLDERS,
During the second quarter of 2005, the Gabelli Global Utility & Income
Trust's (the "Trust") total return rose 6.2% on a net asset value ("NAV") basis
while the Standard & Poor's ("S&P") 500 Utility Index was up 9.3% and the Lipper
Utility Fund Average rose 7.3%. For the six month period ended June 30, 2005,
the Trust's NAV total return was 5.6% versus gains of 15.2% and 10.0% for the
S&P 500 Utility Index and the Lipper Utility Fund Average, respectively. The
Trust's market price on June 30, 2005 was $19.91, which equates to a 7.7%
discount to its net asset value ("NAV") of $21.58. The Trust's market price rose
9.0% during the second quarter and 4.6% during the six month period ended June
30, 2005.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2005.
COMPARATIVE RESULTS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2005 (A)
------------------------------------------------
Since
Year to Inception
Quarter Date 1 Year 05/28/2004
------- ---- ------ ----------
GABELLI GLOBAL UTILITY & INCOME TRUST NAV RETURN (B) .................. 6.17% 5.61% 19.18% 18.30%
GABELLI GLOBAL UTILITY & INCOME TRUST INVESTMENT RETURN (C) ........ 8.95 4.63 14.59 5.49
S&P 500 Utility Index ................................................. 9.31 15.24 37.98 36.21
Lipper Utility Fund Average .......................................... 7.30 10.00 30.25 29.87
(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. INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES,
RISKS AND CHARGES AND EXPENSES OF THE TRUST CAREFULLY BEFORE INVESTING.
PERFORMANCE RESULTS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE
S&P 500 UTILITY INDEX IS AN UNMANAGED INDICATOR OF ELECTRIC AND GAS UTILITY
STOCK PERFORMANCE, WHILE THE LIPPER AVERAGE REFLECTS THE AVERAGE
PERFORMANCE OF OPEN-END MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR
CATEGORY.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NET ASSET VALUE
("NAV"), REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE AND
ARE NET OF EXPENSES. SINCE INCEPTION RETURN BASED ON AN INITIAL NAV OF
$19.06.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE AMERICAN STOCK EXCHANGE, REINVESTMENT OF DISTRIBUTIONS ON THE
PAYABLE DATE. SINCE INCEPTION RETURN BASED ON AN INITIAL OFFERING PRICE OF
$20.00.
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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. The financial
statements and investment portfolio are mailed separately. Both the commentary
and the financial statements, including the portfolio of investments, will be
available on our website at www.gabelli.com/funds.
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THE GABELLI GLOBAL UTILITY & INCOME TRUST
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total
investments:
Energy and Utilities: Integrated ................. 35.9%
Energy and Utilities: Electric ................... 16.0%
Telecommunications ............................... 11.1%
Energy and Utilities: Natural Gas ................ 8.0%
U.S. Government Obligations ...................... 7.5%
Energy and Utilities: Water ...................... 5.6%
Energy and Utilities: Oil ........................ 3.8%
Cable and Satellite .............................. 2.7%
Food and Beverage ................................ 1.9%
Diversified Industrial ........................... 1.4%
Financial Services ............................... 1.1%
Health Care ...................................... 1.0%
Entertainment .................................... 0.6%
Computer Software and Services ................... 0.5%
Real Estate ...................................... 0.5%
Wireless Communications .......................... 0.5%
Hotels and Gaming ................................ 0.4%
Metals and Mining ................................ 0.3%
Equipment and Supplies ........................... 0.3%
Communications Equipment ......................... 0.2%
Automotive: Parts and Accessories ................ 0.2%
Retail ........................................... 0.2%
Transportation ................................... 0.2%
Aerospace ........................................ 0.1%
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100.0%
======
THE GABELLI GLOBAL UTILITY & INCOME TRUST (THE "TRUST") FILES A COMPLETE
SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE FIRST AND THIRD QUARTERS OF
EACH FISCAL YEAR ON FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE QUARTER ENDED
MARCH 31, 2005. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT WWW.GABELLI.COM OR
BY CALLING THE TRUST AT 800-GABELLI (800-422-3554). THE TRUST'S FORM N-Q IS
AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND
COPIED AT THE COMMISSION'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION
ON THE OPERATION OF THE PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING
1-800-SEC-0330.
PROXY VOTING
The Trust files Form N-PX with its complete proxy voting record for the 12
months ended June 30th, no later than August 31st of each year. A description of
the Trust's proxy voting policies and procedures are available without charge
upon request, (i) by calling 800-GABELLI (800-422-3554); (ii) by writing to The
Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; and (iii) by visiting
the Securities and Exchange Commission's website at www.sec.gov.
SHAREHOLDER MEETING -- MAY 9, 2005 -- FINAL RESULTS
The Annual Meeting of Shareholders was held on May 9, 2005 at the Hyatt
Regency in Old Greenwich, Connecticut. At that meeting, common shareholders
voting as a single class elected Anthony J. Colavita and Salvatore J. Zizza as
Trustees of the Trust. There were 2,862,813 votes and 2,863,013 votes cast in
favor of each Trustee and 21,939 votes and 21,739 votes withheld for each
Trustee, respectively.
James P. Conn, Mario d'Urso, Vincent D. Enright, Michael J. Melarkey, Karl
Otto Pohl and Salvatore M. Salibello continue to serve in their capacities as
Trustees of the Trust.
We thank you for your participation and appreciate your continued support.
2
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
---------- -------- --------
COMMON STOCKS -- 90.9%
CABLE AND SATELLITE -- 2.7%
NON U.S. COMPANIES
10,000 Cogeco Inc. ............... $ 195,068 $ 219,229
4,100 Rogers Communications Inc.,
Cl. B .................. 67,378 134,808
U.S. COMPANIES
15,000 Cablevision Systems Corp.,
Cl. A+ ................. 404,775 483,000
2,000 Comcast Corp., Cl. A+ ..... 57,590 61,400
8,000 DIRECTV Group Inc.+ ....... 138,276 124,000
17,000 EchoStar Communications
Corp., Cl. A ........... 532,625 512,550
2,500 Insight Communications
Co. Inc., Cl. A+ ....... 24,795 27,625
4,580 Liberty Global Inc., Cl. A+ 169,201 213,754
----------- -----------
1,589,708 1,776,366
----------- -----------
COMPUTER SOFTWARE AND SERVICES -- 0.5%
U.S. COMPANIES
2,000 Ask Jeeves Inc.+ .......... 55,560 60,380
5,000 DoubleClick Inc.+ ......... 40,150 41,950
6,000 Storage Technology Corp.+ . 218,410 217,740
1,000 SunGard Data Systems Inc.+ 34,410 35,170
----------- -----------
348,530 355,240
----------- -----------
DIVERSIFIED INDUSTRIAL -- 1.4%
NON U.S. COMPANIES
22,000 Bouygues SA ............... 667,299 912,119
----------- -----------
ENERGY AND UTILITIES: ELECTRIC -- 16.0%
NON U.S. COMPANIES
7,000 Electric Power Development
Co. Ltd. ............... 194,633 202,597
U.S. COMPANIES
1,000 Allegheny Energy Inc.+ .... 25,689 25,220
7,500 ALLETE Inc. ............... 250,088 374,250
33,000 American Electric
Power Co. Inc. ......... 1,045,068 1,216,710
500 Cleco Corp. ............... 9,790 10,785
60,000 DPL Inc. .................. 1,160,709 1,647,000
40,000 Duquesne Light
Holdings Inc. .......... 777,948 747,200
1,000 El Paso Electric Co.+ ..... 17,760 20,450
10,000 FPL Group Inc. ............ 349,290 420,600
57,500 Great Plains Energy Inc. .. 1,720,716 1,833,675
40,000 Pepco Holdings Inc. ....... 757,783 957,600
15,000 Pinnacle West Capital Corp. 615,958 666,750
45,000 Southern Co. .............. 1,322,848 1,560,150
MARKET
SHARES COST VALUE
---------- -------- --------
100 UIL Holdings Corp. ........ $ 5,296 $ 5,381
25,000 Unisource Energy Corp. .... 616,316 768,750
----------- -----------
8,869,892 10,457,118
----------- -----------
ENERGY AND UTILITIES: INTEGRATED -- 35.9%
NON U.S. COMPANIES
150,000 AEM SpA ................... 276,010 305,322
500 Areva ..................... 204,193 213,653
8,000 Chubu Electric
Power Co. Inc. ......... 167,490 191,867
10,000 Chugoku Electric
Power Co. Inc. ......... 170,328 195,203
9,000 E.ON AG, ADR .............. 209,576 266,490
28,000 Endesa SA, ADR ............ 527,344 641,760
45,000 Enel SpA .................. 354,639 392,090
9,760 Energias de Portugal
SA, ADR ................ 262,599 244,781
30,000 Enersis SA, ADR ........... 178,867 313,200
142,000 Hera SpA .................. 303,068 395,667
10,000 Hokkaido Electric
Power Co. Inc. ......... 171,210 204,671
10,000 Hokuriku Electric Power Co. 165,392 190,695
22,000 Iberdrola SA .............. 447,198 580,923
16,000 Kansai Electric Power
Co. Inc. ............... 284,746 321,702
5,000 Korea Electric Power
Corp., ADR ............. 72,677 78,350
10,000 Kyushu Electric Power
Co. Inc. ............... 178,959 217,293
10,000 National Grid Transco
plc, ADR ............... 401,704 487,700
35,000 Scottish Power plc, ADR ... 1,013,870 1,246,000
10,000 Shikoku Electric
Power Co. Inc. ......... 171,759 199,261
10,000 Tohoku Electric
Power Co. Inc. ......... 164,025 213,236
10,000 Tokyo Electric
Power Co. Inc. ......... 220,693 238,482
U.S. COMPANIES
22,000 Ameren Corp. .............. 969,633 1,216,600
50,000 Aquila Inc.+ .............. 185,793 180,500
6,000 Black Hills Corp. ......... 181,668 221,100
4,900 CH Energy Group Inc. ...... 219,678 238,287
28,000 Cinergy Corp. ............. 1,059,150 1,254,960
500 CMS Energy Corp.+ ......... 5,055 7,530
1,000 Consolidated Edison Inc. .. 44,903 46,840
300 Constellation Energy Group 13,206 17,307
1,000 Duke Energy Corp. ......... 25,036 29,730
25,000 El Paso Corp. ............. 220,000 288,000
500 Empire District Electric Co. 11,561 11,980
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
---------- -------- --------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES: INTEGRATED (CONTINUED)
U.S. COMPANIES (CONTINUED)
18,000 Energy East Corp. ......... $ 428,738 $ 521,640
4,000 Florida Public Utilities Co. 70,646 76,040
24,000 Hawaiian Electric
Industries Inc. ........ 596,570 643,440
10,000 Maine & Maritimes Corp. ... 300,717 245,000
3,000 MGE Energy Inc. ........... 93,602 109,140
45,000 NiSource Inc. ............. 917,604 1,112,850
4,100 Northeast Utilities ....... 72,953 85,526
50,000 NSTAR ..................... 1,187,449 1,541,500
19,500 OGE Energy Corp. .......... 481,891 564,330
5,000 Ormat Technologies Inc. ... 75,000 95,500
1,000 Otter Tail Corp. .......... 26,092 27,330
1,000 PG&E Corp. ................ 33,930 37,540
1,600 PPL Corp. ................. 86,260 95,008
33,000 Progress Energy Inc. ...... 1,410,351 1,492,920
37,000 Public Service Enterprise
Group Inc. ............. 1,515,661 2,250,340
19,000 SCANA Corp. ............... 681,560 811,490
1,000 TECO Energy Inc. .......... 15,970 18,910
400 TXU Corp. ................. 25,794 33,236
17,000 Vectren Corp. ............. 408,701 488,410
30,000 Westar Energy Inc. ........ 601,317 720,900
5,000 Wisconsin Energy Corp. .... 171,276 195,000
13,000 WPS Resources Corp. ....... 599,229 731,250
50,000 Xcel Energy Inc. .......... 845,734 976,000
----------- -----------
19,529,075 23,524,480
----------- -----------
ENERGY AND UTILITIES: NATURAL GAS -- 8.0%
NON U.S. COMPANIES
80,000 Snam Rete Gas SpA ......... 347,871 428,395
U.S. COMPANIES
27,000 Atmos Energy Corp. ........ 665,564 777,600
1,700 Cascade Natural Gas Corp. . 36,137 34,850
2,000 Chesapeake Utilities Corp. 53,224 61,100
1,000 Energen Corp. ............. 30,935 35,050
21,000 KeySpan Corp. ............. 746,223 854,700
8,000 Laclede Group Inc. ........ 229,823 254,080
16,000 National Fuel Gas Co. ..... 410,803 462,560
20,000 Nicor Inc. ................ 667,385 823,400
1,000 ONEOK Inc. ................ 24,447 32,650
16,000 Peoples Energy Corp. ...... 652,715 695,360
5,000 Piedmont Natural
Gas Co. Inc. ........... 116,790 120,100
10,000 Southern Union Co.+ ....... 229,082 245,500
15,000 Southwest Gas Corp. ....... 350,760 382,650
----------- -----------
4,561,759 5,207,995
----------- -----------
MARKET
SHARES COST VALUE
---------- -------- --------
ENERGY AND UTILITIES: OIL -- 3.8%
NON U.S. COMPANIES
1,500 PetroChina Co. Ltd., ADR .. $ 96,520 $ 110,175
10,000 Royal Dutch Petroleum Co. . 511,652 649,000
U.S. COMPANIES
2,000 ConocoPhillips ............ 74,050 114,980
2,000 Devon Energy Corp. ........ 67,255 101,360
1,000 Exxon Mobil Corp. ......... 45,500 57,470
18,000 Kaneb Services LLC ........ 770,445 779,040
3,400 Murphy Oil Corp. .......... 128,383 177,582
2,000 Premcor Inc. .............. 136,005 148,360
29 Tel Offshore Trust ........ 216 289
5,000 Unocal Corp. .............. 317,425 325,250
----------- -----------
2,147,451 2,463,506
----------- -----------
ENERGY AND UTILITIES: WATER -- 5.6%
NON U.S. COMPANIES
78,000 Severn Trent plc .......... 1,165,148 1,421,281
12,000 Suez SA, ADR .............. 233,115 325,560
50,000 United Utilities plc ...... 502,861 591,260
11,000 Veolia Environnement ...... 299,126 413,595
U.S. COMPANIES
6,500 Aqua America Inc. ......... 129,745 193,310
3,000 California Water
Service Group .......... 84,840 112,620
4,000 Middlesex Water Co. ....... 75,033 77,680
11,000 SJW Corp. ................. 358,906 517,110
----------- -----------
2,848,774 3,652,416
----------- -----------
ENTERTAINMENT -- 0.6%
NON U.S. COMPANIES
12,000 Vivendi Universal SA, ADR 317,880 375,960
----------- -----------
EQUIPMENT AND SUPPLIES -- 0.1%
U.S. COMPANIES
1,000 CUNO Inc.+ ................ 71,272 71,440
----------- -----------
FINANCIAL SERVICES -- 1.1%
U.S. COMPANIES
6,000 Commercial Federal Corp. .. 203,930 202,080
12,000 Fidelity National
Financial Inc. ......... 542,473 428,280
2,000 Hibernia Corp., Cl. A ..... 64,050 66,360
----------- -----------
810,453 696,720
----------- -----------
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
---------- -------- --------
COMMON STOCKS (CONTINUED)
FOOD AND BEVERAGE -- 1.9%
U.S. COMPANIES
15,000 Dreyer's Grand Ice Cream
Holdings Inc., Cl. A ... $ 1,186,651 $ 1,221,000
----------- -----------
HEALTH CARE -- 1.0%
U.S. COMPANIES
15,000 Eon Labs Inc.+ ............ 455,760 459,600
4,000 Renal Care Group Inc.+ .... 183,315 184,400
----------- -----------
639,075 644,000
----------- -----------
HOTELS AND GAMING -- 0.4%
U.S. COMPANIES
6,000 Argosy Gaming Co.+ ........ 279,970 279,660
----------- -----------
METALS AND MINING -- 0.3%
NON U.S. COMPANIES
10,000 Compania de Minas
Buenaventura SA, ADR ... 218,930 229,900
----------- -----------
RETAIL -- 0.2%
U.S. COMPANIES
1,500 Neiman Marcus Group
Inc., Cl. B ............ 144,987 145,050
----------- -----------
TELECOMMUNICATIONS -- 10.8%
NON U.S. COMPANIES
29,000 BCE Inc. .................. 574,237 686,720
30,000 BT Group plc, ADR ......... 1,027,064 1,248,000
10,000 Deutsche Telekom AG, ADR .. 170,218 184,200
6,000 France Telecom SA, ADR .... 149,213 174,840
15,000 KPN NV, ADR ............... 114,993 125,400
3,000 Manitoba Telecom
Services Inc. .......... 100,193 114,349
1,500 Swisscom AG ............... 478,884 489,270
24,063 Telecom Italia SpA ........ 78,320 75,128
19,760 Telefonica SA, ADR ........ 814,238 966,264
16,000 Telefonos de Mexico SA
de CV, Cl. L, ADR ...... 248,481 302,240
U.S. COMPANIES
22,000 AT&T Corp. ................ 423,148 418,880
9,000 BellSouth Corp. ........... 226,200 239,130
1,000 Commonwealth Telephone
Enterprises Inc. ....... 50,950 41,910
28,000 MCI Inc. .................. 555,940 719,880
19,000 SBC Communications Inc. ... 452,510 451,250
20,000 Sprint Corp. .............. 360,662 501,800
10,000 Verizon Communications Inc. 348,835 345,500
----------- -----------
6,174,086 7,084,761
----------- -----------
MARKET
SHARES COST VALUE
---------- -------- --------
TRANSPORTATION -- 0.1%
U.S. COMPANIES
2,000 GATX Corp. ................ $ 56,076 $ 69,000
----------- -----------
WIRELESS COMMUNICATIONS -- 0.5%
NON U.S. COMPANIES
1,600 Mobile TeleSystems, ADR ... 54,874 53,840
30,000 O2 plc+ ................... 48,455 73,236
2,200 Vimpel-Communications, ADR+ 68,035 74,866
U.S. COMPANIES
2,100 United States Cellular Corp.+ 95,967 104,874
----------- -----------
267,331 306,816
----------- -----------
TOTAL COMMON
STOCKS ................. 50,729,199 59,473,547
----------- -----------
CONVERTIBLE PREFERRED STOCKS -- 0.2%
AEROSPACE -- 0.1%
U.S. COMPANIES
1,000 Sequa Corp.,
$5.00 Cv. Pfd. ......... 91,300 98,000
----------- -----------
TELECOMMUNICATIONS -- 0.0%
U.S. COMPANIES
500 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B 20,555 22,550
----------- -----------
TRANSPORTATION -- 0.1%
U.S. COMPANIES
200 GATX Corp.,
$2.50 Cv. Pfd. ......... 26,010 34,250
----------- -----------
TOTAL CONVERTIBLE
PREFERRED STOCKS ....... 137,865 154,800
----------- -----------
PRINCIPAL
AMOUNT
--------
CONVERTIBLE CORPORATE BONDS -- 1.4%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.2%
U.S. COMPANIES
$ 150,000 Pep Boys - Manny,
Moe & Jack, Cv.,
4.250%, 06/01/07 ....... 148,483 145,500
----------- -----------
COMMUNICATIONS EQUIPMENT -- 0.2%
U.S. COMPANIES
100,000 Agere Systems Inc., Sub. Deb. Cv.,
6.500%, 12/15/09 ....... 100,500 101,250
50,000 TriQuint Semiconductor Inc.,
Sub. Deb. Cv.,
4.000%, 03/01/07 ....... 48,825 48,812
----------- -----------
149,325 150,062
----------- -----------
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- -------- --------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
EQUIPMENT AND SUPPLIES -- 0.2%
U.S. COMPANIES
$ 142,000 Robbins & Myers Inc.,
Sub. Deb. Cv.,
8.000%, 01/31/08 ....... $ 143,635 $ 146,260
----------- -----------
REAL ESTATE -- 0.5%
U.S. COMPANIES
Palm Harbor Homes Inc., Cv.,
200,000 3.250%, 05/15/2024 (a) .. 197,331 180,250
150,000 3.250%, 05/15/2024 ...... 125,595 135,188
----------- -----------
322,926 315,438
----------- -----------
TELECOMMUNICATIONS -- 0.3%
NON U.S. COMPANIES
200,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08 ....... 192,688 187,500
----------- -----------
TOTAL CONVERTIBLE
CORPORATE BONDS ........ 957,057 944,760
----------- -----------
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- -------- --------
SHORT-TERM OBLIGATIONS -- 7.5%
U.S. GOVERNMENT OBLIGATIONS -- 7.5%
$4,921,000 U.S. Treasury Bills,
2.856% to 3.221%++,
07/14/05 to 10/20/05 ... $ 4,892,365 $ 4,891,885
----------- -----------
TOTAL SHORT-TERM
OBLIGATIONS ............ 4,892,365 4,891,885
----------- -----------
TOTAL INVESTMENTS -- 100.0% .......... $56,716,486 65,464,992
===========
OTHER ASSETS IN EXCESS OF LIABILITIES .............. 368,070
-----------
NET ASSETS -- COMMON SHARES
(3,050,236 common shares outstanding) ............. $65,833,062
===========
NET ASSET VALUE PER COMMON SHARE
($65,833,062 / 3,050,236 shares outstanding) ...... $21.58
======
- ----------
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At June 30,
2005, the Rule 144A securities are considered liquid and the market value
amounted to $180,250 or 0.3% of total investments.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL UTILITY & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2005 (UNAUDITED)
ASSETS:
Investments, at value (cost $56,716,486) ... $65,464,992
Cash and foreign currency, at value
(cost $43,478) ........................... 43,312
Receivable for investments sold ............ 165,000
Dividends and interest receivable .......... 234,846
Other assets ............................... 2,044
-----------
TOTAL ASSETS ............................... 65,910,194
-----------
LIABILITIES:
Payable for investment advisory fees ....... 53,337
Payable for shareholder
communications expenses .................. 20,174
Payable for shareholder services fees ...... 2,298
Other accrued expenses and liabilities ..... 1,323
-----------
TOTAL LIABILITIES .......................... 77,132
-----------
NET ASSETS applicable to 3,050,236
shares outstanding ....................... $65,833,062
===========
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value $ 3,050
Additional paid-in capital ................. 57,084,356
Net unrealized appreciation on investments 8,748,340
Net unrealized depreciation on foreign
currency translations .................... (2,684)
-----------
NET ASSETS ................................. $65,833,062
===========
NET ASSET VALUE:
($65,833,062 / 3,050,236 shares outstanding;
unlimited number of shares authorized
of $0.001 par value) ....................... $21.58
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2005 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $54,176) $1,364,294
Interest ................................... 94,328
----------
TOTAL INVESTMENT INCOME .................... 1,458,622
----------
EXPENSES:
Investment advisory fees ................... 315,373
Shareholder communications expenses ........ 30,974
Legal and audit fees ....................... 20,626
Trustees' fees ............................. 16,283
Shareholder services fees .................. 8,271
Custodian fees ............................. 7,353
Miscellaneous expenses ..................... 47,045
----------
TOTAL EXPENSES ............................. 445,925
Less: Custodian fee credits ................ (744)
----------
NET EXPENSES ............................... 445,181
----------
NET INVESTMENT INCOME ...................... 1,013,441
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain on investments ........... 528,795
Net realized gain on foreign
currency transactions .................... 35,727
----------
Net realized gain on investments and
foreign currency transactions ............ 564,522
Net change in unrealized appreciation/
depreciation on investments and
foreign currency translations ............ 1,925,264
----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY ......... 2,489,786
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... $3,503,227
==========
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL UTILITY & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30, 2005 PERIOD ENDED
(UNAUDITED) DECEMBER 31, 2004 (A)
------------------ ---------------------
OPERATIONS:
Net investment income ..................................................... $ 1,013,441 $ 796,020
Net realized gain on investments and foreign currency transactions ........ 564,522 236,209
Net change in unrealized appreciation/depreciation on investments and
foreign currency translations ........................................... 1,925,264 6,820,392
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................... 3,503,227 7,852,621
----------- -----------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ..................................................... (1,013,441)* (843,139)
Net realized short term gain on investments and foreign currency transactions (564,154)* (189,235)
Net realized long term gain on investments and foreign currency transactions --* (223)
Return of capital ........................................................... (252,547)* (797,545)
----------- -----------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS .................................. (1,830,142) (1,830,142)
----------- -----------
TRUST SHARE TRANSACTIONS:
Net increase in net assets from common shares issued in offering ............ -- 58,159,499
Offering costs for common shares charged to paid-in-capital ................. -- (122,009)
----------- -----------
NET INCREASE IN NET ASSETS FROM TRUST SHARE TRANSACTIONS .................... -- 58,037,490
----------- -----------
NET INCREASE IN NET ASSETS .................................................. 1,673,085 64,059,969
NET ASSETS:
Beginning of period ......................................................... 64,159,977 100,008
----------- -----------
End of period ............................................................... $65,833,062 $64,159,977
=========== ===========
- ----------
(a) The Gabelli Global Utility & Income Trust commenced investment operations
on May 28, 2004.
* Amounts are subject to change and recharacterization at fiscal year end.
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION. The Gabelli Global Utility & Income Trust (the "Trust") is a
non-diversified closed-end management investment company organized under the
laws of the State of Delaware and registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Trust sold 5,236 shares to Gabelli Funds,
LLC (the "Adviser") for $100,008 on May 17, 2004. Investment operations
commenced on May 28, 2004 upon the sale of 3,045,000 shares of beneficial
interest in the amount of $58,037,490 (net of underwriting fees and expenses of
$2,862,600). The Adviser agreed to pay all the Trust's organizational costs and
the amount by which the Trust's offering costs (other than the underwriting
fees) exceed $0.04 per common share.
The Trust's investment objective is to seek a consistent level of after-tax
total return over the long term with an emphasis currently on qualifying
dividends. The Trust will attempt to achieve its investment objective by
investing, under normal market conditions, at least 80% of its assets in equity
securities (including preferred securities) of domestic and foreign companies
involved to a substantial extent in providing products, services or equipment
for the generation or distribution of electricity, gas or water and
infrastructure operations, and in equity securities (including preferred
securities) of companies in other industries, in each case in such securities
that are expected to periodically pay dividends.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the Trust in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall determine in good faith, to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by the Adviser.
Portfolio securities primarily traded on foreign markets are generally
valued at the preceding closing values of such securities on their respective
exchanges or if after the close of the foreign markets, but prior to the close
of business on the day the securities are being valued, market conditions change
significantly, certain foreign securities may be fair valued pursuant to
procedures established by the Board. Debt instruments that are not credit
impaired with remaining maturities of 60 days or less 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 valued at their fair value as
determined by the Board. Debt instruments having a maturity greater than 60 days
for which market quotations are readily available are valued at the latest
average of the bid and asked prices. If there were no asked prices quoted on
such day, the security is valued using the closing bid price. Futures contracts
are valued at the closing settlement price of the exchange or board of trade on
which the applicable contract is traded.
9
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Securities and assets for which market quotations are not readily available
are valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and
review of available financial and non-financial information about the company;
comparisons to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to the equivalent U.S. dollar value
ADR securities at the close of the U.S. exchange; and evaluation of any other
information that could be indicative of the value of the security.
REPURCHASE AGREEMENTS. The Trust may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the
Board. Under the terms of a typical repurchase agreement, the Trust takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Trust to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Trust's holding period.
The Trust will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Trust in each agreement. The Trust will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Trust may be delayed or limited.
FUTURES CONTRACTS. The Trust may engage in futures contracts for the
purpose of hedging against changes in the value of its portfolio securities and
in the value of securities it intends to purchase. Such investments will only be
made if they are economically appropriate to the reduction of risks involved in
the management of the Trust's investments. Upon entering into a futures
contract, the Trust is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin." Subsequent payments ("variation margin") are made
or received by the Trust each day, depending on the daily fluctuation of the
value of the contract. The daily changes in the contract are included in
unrealized appreciation/depreciation on investments and futures contracts. The
Trust recognizes a realized gain or loss when the contract is closed. At June
30, 2005, there were no open futures contracts.
There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. These contracts may involve market
risk in excess of the unrealized gain or loss reflected in the Statement of
Assets and Liabilities. In addition, there is the risk that the Trust may not be
able to enter into a closing transaction because of an illiquid secondary
market.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Trust may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency translations. When the contract is closed, the Trust 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.
10
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Trust'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. These contracts may
involve market risk in excess of the unrealized gain or loss reflected in the
Statement of Assets and Liabilities. In addition, the Trust could be exposed to
risks if the counterparties to the contracts are unable to meet the terms of
their contracts. At June 30, 2005, there were no open forward foreign exchange
contracts.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Trust are
maintained in United States (U.S.) dollars. Foreign currencies, investments and
other assets and liabilities are translated into U.S. dollars at the exchange
rates prevailing at the end of the period, and 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, which
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 Trust
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.
FOREIGN SECURITIES. The Trust may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial information about companies and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with Federal income tax regulations,
which may differ from that determined under U.S. generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Trust, timing
differences and differing characterizations of distributions made by the Trust.
For the year ended December 31, 2004, reclassifications were made to
decrease accumulated distributions in excess of net investment income by $47,119
and decrease accumulated net realized gain on investments and foreign currency
transactions by $47,119.
11
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The tax character of distributions paid during the year ended December 31,
2004 was as follows:
YEAR ENDED
DECEMBER 31, 2004
------------------
COMMON
-------
DISTRIBUTIONS PAID FROM:
Ordinary income
(Inclusive of short term capital gain) ....... $1,032,374
Net long term capital gain ..................... 223
Non-taxable return of capital .................. 797,545
----------
Total distribution paid ........................ $1,830,142
==========
PROVISION FOR INCOME TAXES. The Trust intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the Trust's policy to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for Federal income taxes is required.
As of December 31, 2004, the components of accumulated earnings/(losses) on
a tax basis were as follows:
Net unrealized appreciation on investments,
foreign payables and receivables and
foreign currency ............................. $6,820,024
----------
Total .......................................... $6,820,024
==========
Dividends and interest from non-U.S. sources received by the Trust are
generally subject to non-U.S. withholding taxes at rates ranging up to 30%. Such
withholding taxes may be reduced or eliminated under the terms of applicable
U.S. income tax treaties, and the Trust intends to undertake any procedural
steps required to claim the benefits of such treaties.
The following summarizes the tax cost of investments and foreign currency
and related unrealized appreciation/ depreciation at June 30, 2005:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
---- ------------ ------------ --------------
Investments .............. $56,716,952 $9,059,174 $(311,134) $8,748,040
Foreign currency ......... 4,694 -- (2,684) (2,684)
---------- --------- ----------
$9,059,174 $(313,818) $8,745,356
========== ========= ==========
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Trust has entered into an
investment advisory agreement (the "Advisory Agreement") with the Adviser which
provides that the Trust will pay the Adviser on the first business day of each
month a fee for the previous month equal on an annual basis to 1.00% of the
value of the Trust's average weekly net assets. In accordance with the Advisory
Agreement, the Adviser provides a continuous investment program for the Trust's
portfolio and oversees the administration of all aspects of the Trust's business
and affairs.
During the six months ended June 30, 2005, Gabelli & Company, Inc.
("Gabelli & Company"), an affiliate of the Adviser received $9,663 in brokerage
commissions as a result of executing agency transactions in portfolio securities
on behalf of the Trust.
12
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The cost of calculating the Trust's net asset value per share is a Trust
expense pursuant to the Advisory Agreement. During the six months ended June 30,
2005, the Trust reimbursed the Adviser $22,500 in connection with the cost of
computing the Trust's net asset value, which is included in miscellaneous
expenses in the Statement of Operations.
The Trust is assuming its portion of the allocated cost of the Gabelli
Funds' Chief Compliance Officer in the amount of $1,288 for the six months ended
June 30, 2005 which is included in miscellaneous expenses in the Statement of
Operations.
4. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the six months ended June 30, 2005, other than short term securities, aggregated
$8,965,330 and $3,967,681, respectively.
5. CAPITAL. The Trust is authorized to issue an unlimited number of Common
Shares of beneficial interest (par value $0.001). The Board of the Trust has
authorized the repurchase of its shares on the open market when the shares are
trading at a discount of 10% or more (or such other percentage as the Board may
determine from time to time) from the net asset value of the shares. During the
six months ended June 30, 2005, the Trust did not repurchase any shares of
beneficial interest in the open market.
Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED
JUNE 30, 2005 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2004 (A)
-------------------- -------------------------
Shares Amount Shares Amount
-------------------- ---------- ------------
Initial seed capital, May 17, 2004 .......... -- -- 5,236 $ 100,008
Shares issued in offering ................... -- -- 3,045,000 58,037,490
------- ------- --------- -----------
Net increase ................................ -- -- 3,050,236 $58,137,498
======= ======= ========= ===========
- ----------
(a) The Gabelli Global Utility & Income Trust commenced investment operations
on May 28, 2004.
6. INDUSTRY CONCENTRATION. Because the Trust primarily invests in common stocks
and other securities of foreign and domestic companies in the utility industry,
its portfolio may be subject to greater risk and market fluctuations than a
portfolio of securities representing a broad range of investments.
7. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests for documents and
testimony. The Trust does not believe that these matters will have a material
adverse effect on the Trust's financial position or the results of its
operations.
8. INDEMNIFICATIONS. The Trust enters into contracts that contain a variety of
indemnifications. The Trust's maximum exposure under these arrangements is
unknown. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
13
THE GABELLI GLOBAL UTILITY & INCOME TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT
EACH PERIOD:
SIX MONTHS ENDED
JUNE 30, 2005 PERIOD ENDED
(UNAUDITED) DECEMBER 31, 2004 (A)
-------------- ----------------------
OPERATING PERFORMANCE:
Net asset value, beginning of period ...................... $ 21.03 $ 19.06(b)
------- -------
Net investment income ..................................... 0.33 0.28
Net realized and unrealized gain on investments ........... 0.82 2.29
------- -------
Total from investment operations .......................... 1.15 2.57
------- -------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ..................................... (0.33)(e) (0.28)
Net realized gain on investments .......................... (0.19)(e) (0.06)
Return of capital ......................................... (0.08)(e) (0.26)
------- -------
Total distributions to common shareholders ................ (0.60) (0.60)
------- -------
NET ASSET VALUE, END OF PERIOD ............................ $ 21.58 $ 21.03
======= =======
Net asset value total return *** .......................... 5.6% 13.9%*
======= =======
Market value, end of period ............................... $ 19.91 $ 19.63
======= =======
Total investment return **** .............................. 4.6% 1.3%**
======= =======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets end of period (in 000's) ....................... $65,833 $64,160
Ratio of net investment income to average net assets ...... 3.21%(c) 2.23%(c)
Ratio of operating expenses to average net assets ......... 1.41%(c)(d) 1.49%(c)
Portfolio turnover rate ................................... 6.9% 16.9%
- ----------
(a) The Gabelli Global Utility & Income Trust commenced investment operations
on May 28, 2004.
(b) The beginning of period NAV reflects a $0.04 reduction for costs associated
with the initial public offering.
(c) Annualized.
(d) The ratio does not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. For the six months
ended June 30, 2005, the effect of the custodian credits was minimal.
(e) Amounts are subject to change and recharacterization at fiscal year end.
* Based on net asset value per share at commencement of operations of $19.06
per share.
** Based on market value per share at initial public offering of $20.00 per
share.
*** Based on net asset value per share, adjusted for reinvestment of
distributions at net asset value on the ex-dividend date. Total return for
periods of less than one year are not annualized.
**** Based on market value per share, adjusted for reinvestment of distributions
on the payment date. Total return for periods of less than one year are not
annualized.
See accompanying notes to financial statements.
14
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
ENROLLMENT IN THE PLAN
It is the Policy of The Gabelli Global Utility & Income Trust ("Trust") to
automatically reinvest dividends payable to common shareholders. As a
"registered" shareholder you automatically become a participant in the Trust's
Automatic Dividend Reinvestment Plan (the "Plan"). The Plan authorizes the Trust
to issue shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a
premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Trust. Plan participants may send their stock
certificates to EquiServe Trust Company ("EquiServe") to be held in their
dividend reinvestment account. Registered shareholders wishing to receive their
distribution in cash must submit this request in writing to:
The Gabelli Global Utility & Income Trust
c/o EquiServe
P.O. Box 43010
Providence, RI 02940-3010
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan or requesting a copy of the terms of the
Plan may contact EquiServe at (800) 336-6983.
SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at EquiServe must
do so in writing or by telephone. Please submit your request to the above
mentioned address or telephone number. Include in your request your name,
address and account number. The cost to liquidate shares is $2.50 per
transaction as well as the brokerage commission incurred. Brokerage charges are
expected to be less than the usual brokerage charge for such transactions.
If your shares are held in the name of a broker, bank or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your dividends will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of Common Shares distributed to participants in the Plan in lieu
of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Trust's Common Shares is equal to or exceeds
net asset value at the time shares are valued for purposes of determining the
number of shares equivalent to the cash dividends or capital gains distribution,
participants are issued Common Shares valued at the greater of (i) the net asset
value as most recently determined or (ii) 95% of the then current market price
of the Trust's Common Shares. The valuation date is the dividend or distribution
payment date or, if that date is not an American Stock Exchange trading day, the
next trading day. If the net asset value of the Common Shares at the time of
valuation exceeds the market price of the Common Shares, participants will
receive shares from the Trust valued at market price. If the Trust should
declare a dividend or capital gains distribution payable only in cash, EquiServe
will buy Common Shares in the open market, or on the American Stock Exchange or
elsewhere, for the participants' accounts, except that EquiServe will endeavor
to terminate purchases in the open market and cause the Trust to issue shares at
net asset value if, following the commencement of such purchases, the market
value of the Common Shares exceeds the then current net asset value.
15
The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
The Trust reserves the right to amend or terminate the Plan as applied to
any voluntary cash payments made and any dividend or distribution paid
subsequent to written notice of the change sent to the members of the Plan at
least 90 days before the record date for such dividend or distribution. The Plan
also may be amended or terminated by EquiServe on at least 90 days' written
notice to participants in the Plan.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our
shareholders to increase their investment in the Trust. In order to participate
in the Voluntary Cash Purchase Plan, shareholders must have their shares
registered in their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to EquiServe for investments in the Trust's shares at
the then current market price. Shareholders may send an amount from $250 to
$10,000. EquiServe will use these funds to purchase shares in the open market on
or about the 1st and 15th of each month. EquiServe will charge each shareholder
who participates $0.75, plus a pro rata share of the brokerage commissions.
Brokerage charges for such purchases are expected to be less than the usual
brokerage charge for such transactions. It is suggested that any voluntary cash
payments be sent to EquiServe, P.O. Box 43010, Providence, RI 02940-3010 such
that EquiServe receives such payments approximately 10 days before the 1st and
15th of the month. Funds not received at least five days before the investment
date shall be held for investment until the next purchase date. A payment may be
withdrawn without charge if notice is received by EquiServe at least 48 hours
before such payment is to be invested.
For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Trust.
16
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL UTILITY & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Mario d'Urso
CHAIRMAN, MITTEL CAPITAL MARKETS SPA
Vincent D. Enright
FORMER SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER,
KEYSPAN ENERGY CORP.
Michael J. Melarkey
ATTORNEY-AT-LAW,
AVANSINO, MELARKEY, KNOBEL & MULLIGAN
Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Salvatore M. Salibello
CERTIFIED PUBLIC ACCOUNTANT,
SALIBELLO & BRODER
Salvatore J. Zizza
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS
Bruce N. Alpert
PRESIDENT
Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
James E. McKee
SECRETARY
David I.Schachter
VICE PRESIDENT
Richard C. Sell, Jr.
TREASURER
OMBUDSMAN
Peter D. Beznoska
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
EquiServe Trust Company
STOCK EXCHANGE LISTING
Common
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Amex-Symbol: GLU
Shares Outstanding: 3,050,236
The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "Specialized Equity Funds," in Sunday's The New York Times and 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 may be obtained each day by calling (914) 921-5071.
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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
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Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Global Utility & Income Trust may,
from time to time, purchase its shares in the open market when the Global
Utility & Income Trust shares are trading at a discount of 10% or more from the
net asset value of the shares.
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THE GABELLI GLOBAL UTILITY & INCOME TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
SEMI-ANNUAL REPORT
JUNE 30, 2005
GLU-SA-Q2/05
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not yet applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
=============================================================================================================================
(C) TOTAL NUMBER OF (D) MAXIMUM NUMBER (OR
SHARES (OR UNITS) APPROXIMATE DOLLAR VALUE) OF
(A) TOTAL NUMBER OF PURCHASED AS PART OF SHARES (OR UNITS) THAT MAY
SHARES (OR UNITS) (B) AVERAGE PRICE PAID PUBLICLY ANNOUNCED YET BE PURCHASED UNDER THE
PERIOD PURCHASED PER SHARE (OR UNIT) PLANS OR PROGRAMS PLANS OR PROGRAMS
=============================================================================================================================
Month #1 Common - N/A Common - N/A Common - N/A Common - 3,050,236
01/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
01/31/05
=============================================================================================================================
Month #2 Common - N/A Common - N/A Common - N/A Common - 3,050,236
02/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
02/28/05
=============================================================================================================================
Month #3 Common - N/A Common - N/A Common - N/A Common - 3,050,236
03/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
03/31/05
=============================================================================================================================
Month #4 Common - N/A Common - N/A Common - N/A Common - 3,050,236
04/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
04/30/05
=============================================================================================================================
Month #5 Common - N/A Common - N/A Common - N/A Common - 3,050,236
05/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
05/31/05
=============================================================================================================================
Month #6 Common - N/A Common - N/A Common - N/A Common - 3,050,236
06/01/05
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
06/30/05
=============================================================================================================================
Total Common - N/A Common - N/A Common - N/A N/A
Preferred - N/A Preferred - N/A Preferred - N/A
=============================================================================================================================
Footnote columns (c) and (d) of the table, by disclosing the following
information in the aggregate for all plans or programs publicly announced:
a. The date each plan or program was announced - The notice of the potential
repurchase of common and preferred shares occurs quarterly in the Fund's
quarterly report in accordance with Section 23(c) of the Investment Company
Act of 1940, as amended.
b. The dollar amount (or share or unit amount) approved - Any or all common
shares outstanding may be repurchased when the Fund's common shares are
trading at a discount of 10% or more from the net asset value of the
shares.
Any or all preferred shares outstanding may be repurchased when the Fund's
preferred shares are trading at a discount to the liquidation value of
$25.00.
c. The expiration date (if any) of each plan or program - The Fund's
repurchase plans are ongoing.
d. Each plan or program that has expired during the period covered by the
table - The Fund's repurchase plans are ongoing.
e. Each plan or program the registrant has determined to terminate prior to
expiration, or under which the registrant does not intend to make further
purchases. - The Fund's repurchase plans are ongoing.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Trustees, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Gabelli Global Utility & Income Trust
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By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date September 7, 2005
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date September 7, 2005
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By (Signature and Title)* /s/ Richard C. Sell
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Richard C. Sell, Jr., Principal Financial Officer
Date September 7, 2005
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* Print the name and title of each signing officer under his or her signature.