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 811-21791
Name of Fund: Global Income & Currency Fund Inc. (GCF)
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Mitchell M. Cox, Chief Executive Officer,
Global Income & Currency Fund Inc., 4 World Financial Center, 6th Floor,
New York, New York 10080.
Registrant's telephone number, including area code: (877) 449-4742
Date of fiscal year end: 12/31/2007
Date of reporting period: 01/01/2007 - 12/31/2007
Item 1 - Report to Stockholders
Global Income &
Currency Fund Inc.
Annual Report
December 31, 2007
[LOGO] IQ INVESTMENT [LOGO] NUVEEN
ADVISORS INVESTMENTS
Global Income & Currency Fund Inc.
Portfolio Information as of December 31, 2007+
Percent of
Notional Exposure by Country/Region++ Net Assets
- --------------------------------------------------------------------------------
United States ....................................................... 58.4%
Mexico .............................................................. 20.8
Hungary ............................................................. 10.8
Turkey .............................................................. 10.7
Colombia ............................................................ 10.6
Brazil .............................................................. 10.5
South Africa ........................................................ 10.2
Iceland ............................................................. 10.1
Philippines ......................................................... 1.3
Indonesia ........................................................... 1.3
Canada .............................................................. 0.2
Switzerland ......................................................... (0.1)
Japan ............................................................... (10.4)
South Korea ......................................................... (10.5)
Singapore ........................................................... (10.5)
Taiwan .............................................................. (11.1)
Europe .............................................................. (11.2)
Denmark ............................................................. (11.5)
Czech Republic ...................................................... (12.2)
- --------------------------------------------------------------------------------
+ At the end of the period, the Fund was invested primarily in U.S. dollars
pursuant to its investment process awaiting an opportunity to re-enter the
global market.
++ This table denotes the notional exposure of Fund investments by country
(or geographic region through the use of European Currency contracts) as a
percentage of net assets of the Fund. For additional detail on the Fund's
holdings, please refer to the "Schedule of Investments" section included
in this report.
2 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
A Summary From Your Fund's Portfolio Manager
We are pleased to provide you with this shareholder report for Global
Income & Currency Fund Inc. While the Fund is advised by IQ Investment Advisors
LLC, the following is provided by Nuveen Asset Management, the Fund's
subadviser.
The investment objective of Global Income & Currency Fund Inc. (the "Fund") is
to provide current income while also seeking total returns. The Fund seeks to
achieve its investment objective by constructing and actively managing a
portfolio of investments that provides long and short exposure to selected
foreign currencies. There can be no assurance that the Fund will achieve its
investment objective.
For the annual period ended December 31, 2007, the Fund had a total investment
return as set forth in the table below, based on the change per share in net
asset value of $19.09 to $18.58. All of the Fund information presented includes
the reinvestment of any dividends or distributions. Distribution information may
be found in the Notes to Financial Statements, Note 5.
- --------------------------------------------------------------------------------
Period
- --------------------------------------------------------------------------------
Fiscal year ended December 31, 2007 8.60%*
- --------------------------------------------------------------------------------
Since inception (from 4/28/06) 14.55%*
- --------------------------------------------------------------------------------
* Fund performance information is net of expenses.
For more detail with regard to the Fund's total investment return based on a
change in the per share market value of the Fund's Common Stock (as measured by
the trading price of the Fund's shares on the New York Stock Exchange), please
refer to the Financial Highlights section of this report.
As a closed-end fund, the Fund's shares may trade in the secondary market at a
premium or discount to the Fund's net asset value. As a result, total investment
returns based on changes in the market value of the Fund's Common Stock can vary
significantly from total investment returns based on changes in the Fund's net
asset value.
Andrew Stenwall
Portfolio Manager
January 17, 2008
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 3
Schedule of Investments as of December 31, 2007 (in U.S. dollars)
Face
Short-Term Securities Amount Value
=====================================================================================================
Hungary -- 10.8%
Foreign Commercial Paper** -- 10.8%
Hungarian Treasury Bill, 6.973%
due 1/16/2008 (a) HUF 2,419,320,000 $ 13,951,377
- -----------------------------------------------------------------------------------------------------
Total Short-Term Securities in Hungary 13,951,377
=====================================================================================================
Mexico -- 20.8%
Foreign Commercial Paper** -- 20.8%
Mexican Cetes Treasury Bill:
7.589% due
1/03/2008 (a) MXN 146,503,200 13,406,352
7.259% due 4/24/2008 149,991,200 13,406,036
- -----------------------------------------------------------------------------------------------------
Total Short-Term Securities in Mexico 26,812,388
=====================================================================================================
South Africa -- 10.2%
Foreign Commercial Paper** -- 10.2%
South Africa Government
Bond Series R195, 8.855%
due 2/28/2008 (a) ZAR 90,000,000 13,152,970
- -----------------------------------------------------------------------------------------------------
Total Short-Term Securities in South Africa 13,152,970
=====================================================================================================
Turkey -- 10.7%
Foreign Commercial Paper** -- 10.7%
Turkey Government Bond,
15.371% due 4/09/2008 TRY 17,000,000 13,903,962
- -----------------------------------------------------------------------------------------------------
Total Short-Term Securities in Turkey 13,903,962
=====================================================================================================
United States -- 58.4%
U.S. Government Agency
Obligations** -- 58.4%
Fannie Mae, 4.90%
due 1/04/2008 (a) USD 24,375,000 24,369,686
Federal Home Loan Bank:
4.75% due 1/09/2008 (a) 10,100,000 10,092,304
4.41% due 2/06/2008 1,900,000 1,892,389
4.37% due 2/08/2008 3,750,000 3,734,122
4.74% due 2/19/2008 (a) 25,400,000 25,260,478
4.33% due 3/07/2008 (a) 10,000,000 9,925,790
- -----------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations 75,274,769
=====================================================================================================
Shares
Held
=====================================================================================================
Mutual Funds -- 0.0%
AIM Short-Term Investment
Trust-Liquid Assets Portfolio --
Institutional Class, 4.94% (b) 52,969 52,969
- -----------------------------------------------------------------------------------------------------
Total Short-Term Securities in the United States 75,327,738
=====================================================================================================
Total Investments
(Cost -- $142,534,768*) --110.9% 143,148,435
Liabilities in Excess of
Other Assets -- (10.9%) (14,103,051)
------------
Net Assets -- 100.0% $129,045,384
============
* The cost and unrealized appreciation (depreciation) of investments as of
December 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 142,534,768
=============
Gross unrealized appreciation .......................... $ 812,389
Gross unrealized depreciation .......................... (198,722)
-------------
Net unrealized appreciation ............................ $ 613,667
=============
** Foreign Commercial Paper and certain U.S. Government Agency Obligations
are traded on a discount basis; the interest rates shown reflect the
discount rates paid at the time of purchase. Other securities bear
interest at the rates shown payable at fixed dates or upon maturity. The
interest rates shown are rates in effect at December 31, 2007.
(a) All or a portion of security held as collateral in connection with open
forward foreign exchange contracts.
(b) Represents the current yield as of December 31, 2007.
o Currency Abbreviations:
BRL Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
COP Colombian Peso
CZK Czech Republic Koruna
DKK Danish Krone
EUR Euro
HUF Hungary Forint
IDR Indonesian Rupiah
ISK Icelandic Krona
JPY Japanese Yen
KRW South Korean Won
MXN Mexican New Peso
PHP Philippines Peso
SGD Singapore Dollar
TRY Turkish Lira
TWD New Taiwan Dollar
USD U.S. Dollar
ZAR South African Rand
o Forward foreign exchange contracts as of December 31, 2007 were as
follows:
-------------------------------------------------------------------------------------
Unrealized
Foreign Foreign Settlement Appreciation
Currency Purchased Currency Sold Date (Depreciation)
-------------------------------------------------------------------------------------
JPY 628,100,000 USD 5,508,953 1/04/2008 $ 116,290
PHP 76,755,000 USD 1,700,000 1/04/2008 159,356
USD 5,500,000 JPY 628,100,000 1/04/2008 (125,243)
USD 1,855,330 PHP 76,755,000 1/04/2008 (4,026)
COP 7,584,500,000 USD 3,703,369 1/15/2008 46,632
USD 14,328,567 TWD 460,950,000 1/15/2008 76,824
USD 7,352,650 EUR 5,000,000 1/15/2008 40,310
USD 13,500,000 KRW 12,675,150,000 1/22/2008 (65,615)
PHP 76,755,000 USD 1,857,125 2/04/2008 (41)
BRL 24,219,000 USD 13,500,000 2/06/2008 27,837
CHF 16,510,000 USD 14,653,543 2/13/2008 (30,543)
USD 14,747,655 CHF 16,510,000 2/13/2008 124,652
USD 15,707,008 CZK 277,480,000 2/14/2008 433,252
USD 14,784,443 DKK 75,000,000 2/14/2008 70,150
USD 13,583,644 SGD 19,500,000 2/14/2008 (6,627)
CAD 13,014,338 USD 13,106,081 2/19/2008 87,425
COP 10,120,000,000 USD 5,021,087 2/19/2008 (41,793)
COP 10,075,000,000 USD 5,000,000 2/19/2008 (42,847)
USD 12,837,311 CAD 13,014,338 2/19/2008 (356,194)
USD 13,500,000 JPY 1,506,060,000 2/19/2008 (56,058)
IDR 15,529,500,000 USD 1,700,000 4/04/2008 (57,849)
ISK 479,900,000 EUR 5,000,000 9/24/2008 (175,969)
ISK 403,020,000 USD 6,000,000 10/02/2008 (28,689)
-------------------------------------------------------------------------------------
Total Unrealized Appreciation on Forward Foreign Exchange
Contracts -- Net $ 191,234
==========
See Notes to Financial Statements.
4 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Statement of Assets, Liabilities and Capital
As of December 31, 2007
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value
(identified cost -- $142,534,768) ................................................ $ 143,148,435
Cash ............................................................................... 7,640
Unrealized appreciation on forward foreign exchange contracts ...................... 1,182,728
Foreign cash (cost -- $6,395) ...................................................... 6,470
Interest receivable ................................................................ 461,978
-------------
Total assets ....................................................................... 144,807,251
-------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign exchange contracts ...................... 991,494
Payables:
Securities purchased ........................................................... $ 13,422,752
Dividends to Common Stock shareholders ......................................... 1,141,250
Investment adviser ............................................................. 97,972 14,661,974
-------------
Accrued expenses ................................................................... 108,399
-------------
Total liabilities .................................................................. 15,761,867
-------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ......................................................................... $ 129,045,384
=============
===================================================================================================================================
Capital
- -----------------------------------------------------------------------------------------------------------------------------------
Common Stock, par value $.001 per share, 100,000,000 shares authorized ............. $ 6,947
Paid-in capital in excess of par ................................................... 132,048,730
Undistributed investment income -- net ............................................. $ 594,525
Accumulated realized capital losses -- net ......................................... (4,473,591
Unrealized appreciation -- net ..................................................... 868,773
-------------
Total accumulated losses -- net .................................................... (3,010,293)
-------------
Total capital -- Equivalent to $18.58 per share based on 6,946,895
shares of Common Stock outstanding (market price -- $17.55) ...................... $ 129,045,384
=============
See Notes to Financial Statements.
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 5
Statement of Operations
For the Year Ended December 31, 2007
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest -- net .................................................................... $ 9,808,616
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ........................................................... $ 1,234,512
Custodian fees ..................................................................... 104,627
Directors' fees and expenses ....................................................... 59,391
Transfer agent fees ................................................................ 36,050
Accounting services ................................................................ 34,725
Professional fees .................................................................. 33,912
Printing and shareholder reports ................................................... 25,510
Listing fees ....................................................................... 23,750
Repurchase offer ................................................................... 20,674
Other .............................................................................. 23,813
-------------
Total expenses before reimbursement ................................................ 1,596,964
Reimbursement of expenses .......................................................... (10,464)
-------------
Total expenses after reimbursement ................................................. 1,586,500
-------------
Investment income -- net ........................................................... 8,222,116
-------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments -- net ............................................................. 7,003,385
Options written -- net ......................................................... (60,452)
Foreign currency transactions -- net ........................................... (2,829,753) 4,113,180
-------------
Change in unrealized appreciation/depreciation on:
Investments -- net ............................................................. (2,095,627)
Foreign currency transactions -- net ........................................... 478,579 (1,617,048)
-------------------------------
Total realized and unrealized gain -- net .......................................... 2,496,132
-------------
Net Increase in Net Assets Resulting from Operations ............................... $ 10,718,248
=============
See Notes to Financial Statements.
6 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Statements of Changes in Net Assets
For the Period
For the April 28,
Year Ended 2006+ to
December 31, December 31,
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... $ 8,222,116 $ 5,195,899
Realized gain (loss) -- net ........................................................ 4,113,180 (284,747)
Change in unrealized appreciation/depreciation -- net .............................. (1,617,048) 2,485,821
-------------------------------
Net increase in net assets resulting from operations ............................... 10,718,248 7,396,973
-------------------------------
===================================================================================================================================
Dividends & Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... (14,209,304) (5,412,680)
Realized gain -- net ............................................................... -- (1,524,204)
Tax return of capital .............................................................. -- (236,486)
-------------------------------
Net decrease in net assets resulting from dividends and
distributions to shareholders .................................................... (14,209,304) (7,173,370)
-------------------------------
===================================================================================================================================
Common Stock Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net proceeds from issuance of Common Stock ......................................... -- 140,385,000
Value of shares issued to Common Stock shareholders in reinvestment
of dividends and distributions ................................................... 654,837 --
Offering costs resulting from the issuance of Common Stock ......................... -- (294,000)
Net redemption of Common Stock resulting from a repurchase offer
(including $8,861 of repurchase fees) ............................................ (8,533,008) --
-------------------------------
Net increase (decrease) in net assets resulting from Common
Stock transactions ............................................................... (7,878,171) 140,091,000
-------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................................ (11,369,227) 140,314,603
Beginning of period ................................................................ 140,414,611 100,008
-------------------------------
End of period* ..................................................................... $ 129,045,384 $ 140,414,611
===============================
* Undistributed (accumulated distributions in excess of) investment
income -- net .............................................................. $ 594,525 $ (336,943)
===============================
+ Commencement of operations.
See Notes to Financial Statements.
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 7
Financial Highlights
For the Period
For the April 28,
Year Ended 2006+ to
The following per share data and ratios have been derived December 31, December 31,
from information provided in the financial statements. 2007 2006
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................ $ 19.09 $ 19.10
------------------------------
Investment income -- net*** ......................................................... 1.16 .71
Realized and unrealized gain -- net ................................................. .35 .30
------------------------------
Total from investment operations .................................................... 1.51 1.01
------------------------------
Less dividends and distributions:
Investment income -- net ........................................................ (2.02) (.74)
Realized gain -- net ............................................................ -- (.21)
Tax return of capital ........................................................... -- (.03)
------------------------------
Total dividends and distributions ................................................... (2.02) (.98)
------------------------------
Offering costs resulting from the issuance of Common Stock .......................... -- (.04)
------------------------------
Net asset value, end of period ...................................................... $ 18.58 $ 19.09
==============================
Market price per share, end of period ............................................... $ 17.55 $ 18.05
==============================
===================================================================================================================================
Total Investment Return**
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................................................. 8.60% 5.48%@
==============================
Based on market price per share ..................................................... 8.49% (4.76%)@
==============================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ...................................................... 1.16% 1.19%*
==============================
Expenses ............................................................................ 1.16% 1.19%*
==============================
Investment income -- net ............................................................ 5.99% 5.45%*
==============================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............................................ $ 129,045 $ 140,415
==============================
Portfolio turnover .................................................................. 0%++ 0%++
==============================
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
*** Based on average shares outstanding.
+ Commencement of operations.
++ Portfolio turnover is calculated based upon long-term investments. All of
the securities held in the portfolio have been classified as short-term
investments because the maturity dates at the time of acquisition were one
year or less, and therefore, the portfolio turnover is zero.
@ Aggregate total investment return.
Notes to Financial Statements.
8 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Notes to Financial Statements
1. Significant Accounting Policies:
Global Income & Currency Fund Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, closed-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. The Fund determines and makes available for publication the net
asset value of its Common Stock on a daily basis. The Fund's Common Stock Shares
are listed on the New York Stock Exchange ("NYSE") under the symbol GCF. The
following is a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Debt securities are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Fund under the general direction
of the Board of Directors. Such valuations and procedures will be reviewed
periodically by the Board of Directors of the Fund. Effective September 4, 2007,
exchange-traded options are valued at the mean between the last bid and ask
prices at the close of the options market in which the options trade and
previously were valued at the last sales price. In the case of options traded in
the OTC market, valuation is the last asked price (options written) or the last
bid price (options purchased). Swap agreements are valued based upon quoted fair
valuations received daily by the Fund from a pricing service or the
counterparty. Short-term investments with a remaining maturity of 60 days or
less are valued at amortized cost which approximates market value, under which
method the investment is valued at cost and any premium or discount is amortized
on a straight line basis to maturity.
Generally, trading in foreign securities is substantially completed each day at
various times prior to the close of business on the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates will generally be
determined as of the close of business on the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of business on the
NYSE that may not be reflected in the computation of the Fund's net asset value.
If events (for example, a company announcement, market volatility or a natural
disaster) occur during such periods that are expected to materially affect the
value of such securities, those securities may be valued at their fair value as
determined in good faith by the Fund's Board of Directors or by the investment
adviser using a pricing service and/or procedures approved by the Fund's Board
of Directors.
(b) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into U.S. dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on investments.
The Fund may invest in foreign securities, which may involve a number of risk
factors and special considerations not present with investments in securities of
U.S. entities.
(c) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract resulting
from an unfavorable price change in the underlying security or index, or if the
counterparty does not perform under the contract. The counterparty for certain
instruments may pledge cash or securities as collateral.
o Forward foreign exchange contracts -- The Fund will enter into forward
foreign exchange contracts which include, but are not limited to, cash
settled currency forward contracts including non-deliverable currency
forward contracts. The contracts are marked-to-market daily and any change
in market value is recorded by the Fund as an unrealized gain or loss.
When the contract is closed, the Fund records a realized gain or loss
equal to the difference between the value at the time it was opened and
the value at the time it was closed. To the extent necessary, certain debt
securities will serve as collateral for the Fund's currency contracts.
o Options -- The Fund may write and purchase call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option written. When a security is purchased or sold through
an exercise of an option,
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 9
Notes to Financial Statements (continued)
the related premium paid (or received) is added to (or deducted from) the
basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to
the extent of the premiums received or paid (or gain or loss to the extent
the cost of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
o Swaps -- The Fund may enter into swap agreements, which are OTC contracts
in which the Fund and a counterparty agree to make periodic net payments
on a specified notional amount. The net payments can be made for a set
period of time or may be triggered by a predetermined credit event. The
net periodic payments may be based on a fixed or variable interest rate;
the change in market value of a specified security, basket of securities,
or index; or the return generated by a security. These periodic payments
received or made by the Fund are recorded in the accompanying Statement of
Operations as realized gains or losses, respectively. Gains or losses are
realized upon termination of the swap agreements. Swaps are
marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the
swap agreements.
(d) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax law, withholding taxes may be imposed on interest, dividends and
capital gains at various rates.
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may have passed are
subsequently recorded when the Fund has determined the ex-dividend date.
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
(f) Dividends and distributions -- Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates. A portion of the distributions paid by
the Fund during the period April 29, 2006 to December 31, 2006 was characterized
as a tax return of capital.
(g) Offering expenses -- Direct expenses relating to the public offering of the
Fund's Common Stock were charged to capital at the time of issuance of the
shares.
(h) Recent accounting pronouncements -- Effective June 29, 2007, the Fund
implemented Financial Accounting Standards Board ("FASB") Interpretation No. 48,
"Accounting for Uncertainty in Income Taxes -- an interpretation of FASB
Statement No. 109" ("FIN 48"). FIN 48 prescribes the minimum recognition
threshold a tax position must meet in connection with accounting for
uncertainties in income tax positions taken or expected to be taken by an
entity, including investment companies, before being measured and recognized in
the financial statements. Management has evaluated the application of FIN 48 to
the Fund, and has determined that the adoption of FIN 48 does not have a
material impact on the Fund's financial statements. The Fund files U.S. and
various state tax returns. No income tax returns are currently under
examination. All tax years of the Fund are open at this time.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. The impact on the Fund's financial statement disclosures, if any,
is currently being assessed.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159") was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. The impact on the Fund's financial
statement disclosures, if any, is currently being assessed.
10 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Notes to Financial Statements (continued)
(i) Reclassifications -- U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the current
year, $6,897,982 has been reclassified between undistributed net realized
capital gains and accumulated distributions in excess of net investment income
and $20,674 has been reclassified between paid-in capital in excess of par and
accumulated distributions in excess of net investment income as a result of
permanent differences attributable to foreign currency transactions and
non-deductible expenses. These reclassifications have no effect on net assets or
net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory and Management Agreement with
IQ Investment Advisors LLC ("IQ"), an indirect subsidiary of Merrill Lynch &
Co., Inc. ("ML & Co."). IQ is responsible for the investment advisory,
management and administrative services to the Fund. In addition, IQ provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee at
an annual rate equal to .90% of the average daily value of the Fund's net assets
plus borrowings for leverage and other investment purposes. IQ entered into a
Subadvisory Agreement with Nuveen Asset Management ("NAM"), pursuant to which
Nuveen was responsible for providing certain investment advisory services to IQ
with respect to the Fund. For such services, IQ agreed to pay NAM a monthly fee
at an annual rate equal to .40% of the average daily value of the Fund's net
assets plus borrowings for leverage and other investment purposes. The Fund does
not make any direct payment to NAM for subadvisory services.
On June 20, 2007, Nuveen Investments Inc. ("Nuveen Investments"), the parent
company of NAM announced that it had entered into a definitive Agreement and
Plan of Merger (the "Merger Agreement") to be acquired by an investor group
majority-led by Madison Dearborn Partners, LLC. The investor group's financial
advisors and investors include ML & Co. and Merrill Lynch Global Private Equity
(both affiliates of IQ).
The merger, which was consummated in November 2007, resulted in an "assignment"
(as defined in the Investment Company Act of 1940) of the current Subadvisory
Agreement between IQ and NAM, causing its automatic termination.
At a meeting held on July 24, 2007, the Board of Directors of the Fund approved
a new investment subadvisory agreement for the Fund to be presented to
shareholders for approval. The new subadvisory agreement contains substantially
the same terms as the existing Subadvisory Agreement for the Fund, including the
same subadvisory fee.
In order to ensure continuity of services to the Fund, in the event that the
merger was consummated prior to the shareholder vote (as was the case), the
Fund's Board, in reliance on Rule 15a-4 under the Investment Company Act, also
approved an interim subadvisory agreement for the Fund with a term of up to 150
days pending approval of the new subadvisory agreement by shareholders. The
Board determined that the scope and quality of services to be provided under the
interim subadvisory agreement were equivalent to the existing subadvisory
agreement and that other than the dates, parties and provisions required by Rule
15a-4, there were no material differences between the interim subadvisory
agreement and the existing Subadvisory Agreement.
At a shareholder meeting held on January 10, 2008, the new subadvisory agreement
was approved.
IQ has entered into an Administration Agreement with Princeton Administrators,
LLC (the "Administrator"). The Administration Agreement provides that IQ pays
the Administrator a fee from its investment advisory fee at an annual rate equal
to .12% of the average daily value of the Fund's net assets plus borrowings for
leverage and other investment purposes, for the performance of administrative
and other services necessary for the operation of the Fund. There is no increase
in the aggregate fees paid by the Fund for these services. The Administrator is
an indirect subsidiary of BlackRock, Inc. ML & Co. is a principal owner of
BlackRock, Inc.
Certain officers of the Fund are officers and/or directors of IQ, ML & Co.,
BlackRock, Inc. or its affiliates.
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 11
Notes to Financial Statements (concluded)
3. Investments:
There were no purchases or sales of long-term investments for the year ended
December 31, 2007.
Transactions in options written for the year ended December 31, 2007 were as
follows:
- -------------------------------------------------------------------------------
Number of Premiums
Call Options Written Contracts Received
- -------------------------------------------------------------------------------
Outstanding call options written,
beginning of year ................................ -- --
Options written .................................... 14,000 $ 210,700
Options closed ..................................... (14,000) (210,700)
---------------------
Outstanding call options written,
end of year ...................................... -- --
=====================
4. Common Stock Transactions:
The Fund is authorized to issue 100,000,000 shares of stock, par value $.001 per
share, all of which were initially classified as Common Stock. The Board of
Directors is authorized, however, to classify and reclassify any unissued shares
of Common Stock without approval of the holders of Common Stock.
Shares issued and outstanding during the year ended December 31, 2007 decreased
by 443,043 as a result of a repurchase offer and increased by 34,702 as a result
of dividend reinvestment. For the period April 28, 2006 to December 31, 2006,
shares issued and outstanding increased by 7,350,000 from shares sold.
Subject to the approval of the Board of Directors, the Fund will make offers to
repurchase its shares at annual (approximately 12-month) intervals. The shares
tendered in the repurchase offer will be subject to a repurchase fee retained by
the Fund to compensate the Fund for expenses directly related to the repurchase
offer.
With regard to repurchase fees, IQ will reimburse the Fund for the cost of
expenses paid in excess of 2% of the value of the shares that are repurchased.
5. Distributions to Shareholders:
The tax character of distributions paid during the year ended December 31, 2007
and the period April 28, 2006 to December 31, 2006 was as follows:
- --------------------------------------------------------------------------------
4/28/2006+ to
12/31/2007 12/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ............................ $14,209,304 $6,936,884
Tax return of capital ...................... -- 236,486
---------------------------
Total distributions .......................... $14,209,304 $7,173,370
===========================
+ Commencement of operations.
As of December 31, 2007, the components of accumulated losses on a tax basis
were as follows:
- -----------------------------------------------------------------------------
Undistributed ordinary income -- net ......................... $ 594,525
Undistributed long-term capital gains -- net ................. --
-----------
Total undistributed earnings -- net .......................... 594,525
Capital loss carryforward .................................... (3,235,195)*
Unrealized losses -- net ..................................... (369,623)**
-----------
Total accumulated losses -- net .............................. $(3,010,293)
===========
* On December 31, 2007, the Fund had a net capital loss carryforward of
$3,235,195, all of which expires in 2015. This amount will be available to
offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the deferral of post-October capital losses for
tax purposes and the realization for tax purposes of unrealized gains
(losses) on certain foreign currency contracts.
12 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Global Income & Currency Fund
Inc.:
We have audited the accompanying statement of assets, liabilities and capital,
including the schedule of investments, of Global Income & Currency Fund Inc. as
of December 31, 2007, and the related statement of operations for the year
ended, and the statements of changes in net assets and the financial highlights
for the year then ended and for the period April 28, 2006 (commencement of
operations) through December 31, 2006. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of December 31, 2007, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Global
Income & Currency Fund Inc. as of December 31, 2007, the results of its
operations for the year ended, and the changes in its net assets and its
financial highlights for the year then ended, and for the period April 28, 2006
through December 31, 2006, in conformity with accounting principles generally
accepted in the United States of America.
Deloitte & Touche LLP
Princeton, NJ
February 29, 2008
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 13
Fundamental Periodic Repurchase Policy
The Board of Directors approved a fundamental policy whereby the Fund would
adopt an "interval fund" structure pursuant to Rule 23c-3 under the Investment
Company Act of 1940 (the "1940 Act"), as amended. As an interval fund, the Fund
will make annual repurchase offers at net asset value (less repurchase fee not
to exceed 2%) to all Fund shareholders. The percentage of outstanding shares
that the Fund can repurchase in each offer will be established by the Fund's
Board of Directors shortly before the commencement of each offer, and will be
between 5% and 25% of the Fund's then outstanding shares.
The Fund has adopted the following fundamental policy regarding periodic
repurchases:
a) The Fund will make offers to repurchase its shares at annual (approximately
12-month) intervals pursuant to Rule 23c-3 under the 1940 Act ("Offers"). The
Board of Directors may place such conditions and limitations on an Offer, as may
be permitted under Rule 23c-3.
b) The repurchase request deadline for each Offer, by which the Fund must
receive repurchase requests submitted by shareholders in response to the most
recent Offer, will be determined by reference to the fourth quarterly
rebalancing date of the current annual period for the currency investments (as
described in the Fund's prospectus); and will be the fourteenth day prior to
such exercise date; provided, that in the event that such day is not a business
day, the repurchase request deadline will be the business day subsequent to the
fourteenth day prior to the exercise date of the call spreads and written call
options (the "Repurchase Request Deadline").
c) The maximum number of days between a Repurchase Request Deadline and the next
repurchase pricing date will be fourteen days; provided that if the fourteenth
day after a Repurchase Request Deadline is not a business day, the repurchase
pricing date shall be the next business day (the "Repurchase Pricing Date").
d) Offers may be suspended or postponed under certain circumstances, as provided
for in Rule 23c-3.
14 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Fund Certification
In May 2007, the Fund filed its Chief Executive Officer Certification for the
prior year with the New York Stock Exchange pursuant to Section 303A.12(a) of
the New York Stock Exchange Corporate Governance Listing Standards.
The Fund's Chief Executive Officer and Chief Financial Officer Certifications
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with the
Fund's Form N-CSR and are available on the Securities and Exchange Commission's
website at http://www.sec.gov.
Important Tax Information
The following information is provided with respect to the ordinary income
distributions paid by Global Income & Currency Fund Inc. during the fiscal year
ended December 31, 2007:
- --------------------------------------------------------------------------------
Federal Obligation Interest ....................................... 9.55%*
Interest-Related Dividends for Non-U.S. Residents ................. 23.16%**
- --------------------------------------------------------------------------------
* The law varies in each state as to whether and what percentage of dividend
income attributable to federal obligations is exempt from state income
tax. We recommend that you consult your tax adviser to determine if any
portion of the dividends you received is exempt from state income tax.
** Represents the portion of the dividends paid that are eligible for
exemption from U.S. withholding tax for nonresident aliens and foreign
corporations.
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 15
Approval of New Subadvisory Agreement
The Board of Directors (the "Board" or the "Directors") of Global Income &
Currency Fund Inc. (the "Fund"), currently consisting solely of Directors that
are not "interested persons" of the Fund (the "non-interested Directors"), as
such term is defined in Section 2(a)(19) of the Investment Company Act of 1940,
as amended (the "Investment Company Act"), previously approved a subadvisory
agreement (the "Subadvisory Agreement") between IQ Investment Advisors LLC, the
Fund's investment adviser ("IQ Advisors" or the "Adviser"), and Nuveen Asset
Management, the Fund's subadviser ("NAM" or the "Subadviser").
On June 20, 2007, Nuveen Investments, Inc. ("Nuveen Investments"), the parent
company of NAM, announced that it had entered into a definitive Agreement and
Plan of Merger (the "Merger") to be acquired by an investor group majority-led
by Madison Dearborn Partners, LLC. The Merger, when consummated, has the effect
of causing the Fund's Subadvisory Agreement to be terminated pursuant to the
terms of the Subadvisory Agreement. In anticipation of the consummation of the
Merger, the Board of the Fund met in person on July 24, 2007 for purposes of,
among other things, considering whether it would be in the best interests of the
Fund and its stockholders to approve a new subadvisory agreement (the "New
Subadvisory Agreement") that would take effect upon the termination of the
existing Subadvisory Agreement. The Board also approved an interim subadvisory
agreement between NAM and IQ Advisors that would take effect (and continue for
no more than 150 days) if the Merger was consummated prior to shareholder
approval of the New Subadvisory Agreement. The Board considered substantially
the same factors in approving the interim subadvisory agreement as were
considered in approving the New Subadvisory Agreement.
The Merger was approved by the stockholders of Nuveen Investments in November
2007. At that time, Nuveen Investments ceased to be a publicly traded company
and is now privately held by an investor group that includes Merrill Lynch, an
affiliate of the Adviser. The shareholders of the Fund approved the New
Subadvisory Agreement on January 10, 2008.
The following discussion summarizes the information considered and the
conclusions made by the Board in approving the New Subadvisory Agreement.
In considering approval of the New Subadvisory Agreement between IQ Advisors and
the Subadviser, the Board received and discussed various materials provided to
it in advance of the July 24, 2007 meeting which included, among other things, a
copy of the form of New Subadvisory Agreement, the materials the Board had
received in connection with its consideration and approval of the then existing
Subadvisory Agreement, due diligence materials from the Subadviser and a report
on the Merger. In addition, the Board considered materials received at previous
meetings of the Board regarding the Fund.
At the July 24, 2007 Board meeting, representatives of NAM made a presentation
regarding the Merger and responded to questions from the Board. The
non-interested Directors discussed the presentation given at the meeting by
representatives of the Subadviser and the materials distributed in connection
therewith, which provided information about the transaction that would cause the
change in control of the Subadviser and the termination of the then existing
Subadvisory Agreement. The non-interested Directors met privately with their
legal counsel to review the Board's duties in reviewing a subadvisory agreement
and approving the New Subadvisory Agreement. The Board considered all factors it
believed relevant with respect to the Fund, including the following: (a) the
nature, extent and quality of the services to be provided by the Subadviser; (b)
the investment performance of the Fund and the Subadviser; (c) the costs of the
services to be provided and profits to be realized by the Subadviser from its
relationship with the Fund; and (d) the extent to which economies of scale could
be realized as the Fund grows and whether fee levels reflect these economies of
scale for the benefit of Fund investors.
16 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
(a) Nature, Extent and Quality of Services -- In connection with their
consideration of the New Subadvisory Agreement, the Directors considered
representations by the Adviser and the Subadviser that there would be no
diminution in the services to be rendered to the Fund by the Adviser and the
Subadviser, respectively, as a result of the change in control of the Subadviser
and the effectiveness of the New Subadvisory Agreement. The Board noted that
representatives of the Subadviser stated that they did not anticipate any change
in their personnel responsible for providing services to the Fund, and in
particular that the investment and compliance personnel of the Subadviser were
not expected to change as a result of the change in control of the Subadviser.
In reviewing the New Subadvisory Agreement, the Directors focused on the
experience of the Subadviser in managing registered funds. The Board considered
the reputation and investment experience of the Subadviser and its investment
professionals who would continue to serve as portfolio managers after the change
in control. The Board noted the representations of the Subadviser that the
change in control would have no adverse effect on the experience, resources and
strengths of the Subadviser in managing investment companies. The Board then
discussed the Subadviser's anticipated financial condition after the change in
control. The Board noted statements from the Subadviser's representatives that
the financial position of the Subadviser would not be negatively affected by the
Merger. The Board also considered representations from the Subadviser that the
change in control would not have an effect on the Subadviser's compliance
personnel or compliance procedures. The Board then discussed the due diligence
performed by personnel of the Adviser regarding the Subadviser. Based on the
discussions held and the materials presented at these meetings and prior
meetings, the Board determined that the proposed change in control of the
Subadviser would not likely cause an adverse change in the nature, extent and
quality of the services to be provided by the Subadviser under the New
Subadvisory Agreement. In addition, the Board was of the view that the
Subadviser had evidenced a commitment to maintaining a culture of compliance
that would continue after the Merger.
(b) The Investment Performance of the Fund and the Subadviser -- The Directors
reviewed the investment performance of the Fund, and primarily based their
evaluation of the Subadviser on the Fund's performance for the limited period
that the Fund had been in operation. The Directors considered the history,
experience, resources and strengths of the Subadviser in developing and
implementing the investment strategies used by the Fund. The Directors noted
that the Fund uses an innovative investment strategy and that comparisons of the
Fund's investment performance to the performance of other investment companies
was generally not meaningful. The Directors reviewed the Fund's investment
performance and compared such performance to the performance of a relevant
reference index. The Directors discussed the degree to which the Fund was
achieving its investment objective, noting that the Fund had been in operation
for a relatively short period of time. In particular, the Directors noted that
the Fund generally performed as expected relative to its reference index. As a
result of their discussions and review, the Directors concluded that the Fund's
performance was satisfactory. The Board did not specifically consider the
Subadviser's performance with respect to most other accounts it manages, because
these accounts might have investment objectives, policies or restrictions
different from those of the Fund. The Board considered the reputation and
investment experience of the Subadviser and its investment professionals. The
Board discussed the experience, resources and strengths of the Subadviser in
managing or sponsoring investment companies. The Board also considered the
experience of the Fund's portfolio managers and discussions held with the
managers regarding implementation of the Fund's investment programs. Following
their deliberations, the Board concluded that, while past performance is not an
indicator of future performance, the Subadviser should likely be able to
continue to effectively implement the Fund's investment strategy in attempting
to meet the Fund's investment objective.
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 17
Approval of New Subadvisory Agreement (concluded)
(c) Fees and Profitability of the Subadviser -- The Board considered
representations by the Adviser and the Subadviser that there would be no change
in the allocation of the management fees between the Adviser and Subadviser in
relation to the services provided by the Subadviser, as a result of the change
in control of Nuveen Investments and the effectiveness of the New Subadvisory
Agreement. In considering the compensation to be paid to the Subadviser, noting
that no changes to such compensation from that payable under the then existing
Subadvisory Agreement was proposed, the Board referred to the materials
presented and discussions held in connection with their consideration of the
then existing Subadvisory Agreement for the Fund. The Board noted that in
connection with such considerations they had received and reviewed fee
comparison data from Lipper Inc. (which included information regarding the fees
paid by certain investment advisers to subadvisers of peer funds), and concluded
that such information continued to be relevant to their current deliberations.
In reviewing that data, the Board noted that the subadvisory fee with respect to
the Fund was at a level that continued to be reasonable and similar to that of
comparable funds. Taking into account the totality of the information and
materials provided to them at these meetings and at prior meetings, including,
among other things, the fact that the subadvisory fees were negotiated by the
Adviser on an arm's-length basis, the Board concluded that the subadvisory fees
proposed under the New Subadvisory Agreement continued to be reasonable for the
services to be rendered.
(d) Economies of Scale and Whether Fee Levels Reflect these Economies of Scale
- -- The Board also considered whether the Fund would be able to participate in
any economies of scale that the Subadviser may experience given present asset
levels of the Fund. On this point, the Board noted the uncertainty of the asset
levels of the Fund going forward. The Board discussed the renewal requirements
for investment advisory agreements in general, and determined to revisit this
issue from time to time.
The Board's Conclusions About the New Subadvisory Agreement
The Board examined the totality of the information they were provided and did
not identify any single factor discussed previously as controlling. The Board,
including all of the non-interested Directors, concluded that the terms of the
New Subadvisory Agreement were fair and reasonable, that the Subadviser's fees
are reasonable in light of the services to be provided to the Fund, and that the
New Subadvisory Agreement should be approved and recommended to the Fund's
stockholders.
18 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Automatic Dividend Reinvestment Plan
How the Plan Works -- The Fund offers a Dividend Reinvestment Plan (the "Plan")
under which income and capital gains dividends paid by the Fund are
automatically reinvested in additional shares of Common Stock of the Fund. The
Plan is administered on behalf of the shareholders by The Bank of New York
Mellon (the "Plan Agent"). Under the Plan, whenever the Fund declares a
dividend, participants in the Plan will receive the equivalent in shares of
Common Stock of the Fund. The Plan Agent will acquire the shares for the
participant's account either (i) through receipt of additional unissued but
authorized shares of the Fund ("newly issued shares") or (ii) by purchase of
outstanding shares of Common Stock on the open market on the New York Stock
Exchange or elsewhere. If, on the dividend payment date, the Fund's net asset
value per share is equal to or less than the market price per share plus
estimated brokerage commissions (a condition often referred to as a "market
premium"), the Plan Agent will invest the dividend amount in newly issued
shares. If the Fund's net asset value per share is greater than the market price
per share (a condition often referred to as a "market discount"), the Plan Agent
will invest the dividend amount by purchasing on the open market additional
shares. If the Plan Agent is unable to invest the full dividend amount in open
market purchases, or if the market discount shifts to a market premium during
the purchase period, the Plan Agent will invest any uninvested portion in newly
issued shares. The shares acquired are credited to each shareholder's account.
The amount credited is determined by dividing the dollar amount of the dividend
by either (i) when the shares are newly issued, the net asset value per share on
the date the shares are issued or (ii) when shares are purchased in the open
market, the average purchase price per share.
Participation in the Plan -- Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Stock of the Fund unless the shareholder specifically elects
not to participate in the Plan. Shareholders who elect not to participate will
receive all dividend distributions in cash. Shareholders who do not wish to
participate in the Plan, must advise the Plan Agent in writing (at the address
set forth below) that they elect not to participate in the Plan. Participation
in the Plan is completely voluntary and may be terminated or resumed at any time
without penalty by writing to the Plan Agent.
Benefits of the Plan -- The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Fund. The Plan
promotes a long-term strategy of investing at a lower cost. All shares acquired
pursuant to the Plan receive voting rights. In addition, if the market price
plus commissions of the Fund's shares is above the net asset value, participants
in the Plan will receive shares of the Fund for less than they could otherwise
purchase them and with a cash value greater than the value of any cash
distribution they would have received. However, there may not be enough shares
available in the market to make distributions in shares at prices below the net
asset value. Also, since the Fund does not redeem shares, the price on resale
may be more or less than the net asset value.
Plan Fees -- There are no enrollment fees or brokerage fees for participating in
the Plan. The Plan Agent's service fees for handling the reinvestment of
distributions are paid for by the Fund. However, brokerage commissions may be
incurred when the Fund purchases shares on the open market and shareholders will
pay a pro rata share of any such commissions.
Tax Implications -- The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that may
be payable (or required to be withheld) on such dividends. Therefore, income and
capital gains may still be realized even though shareholders do not receive
cash. Participation in the Plan generally will not affect the tax-exempt status
of exempt interest dividends paid by the Fund. If, when the Fund's shares are
trading at a market premium, the Fund issues shares pursuant to the Plan that
have a greater fair market value than the amount of cash reinvested, it is
possible that all or a portion of the discount from the market value (which may
not exceed 5% of the fair market value of the Fund's shares) could be viewed as
a taxable distribution. If the discount is viewed as a taxable distribution, it
is also possible that the taxable character of this discount would be allocable
to all the shareholders, including shareholders who do not participate in the
Plan. Thus, shareholders who do not participate in the Plan might be required to
report as ordinary income a portion of their distributions equal to their
allocable share of the discount.
Contact Information -- All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at BNY Mellon
Shareowner Services, P.O. Box 358035, Pittsburgh, PA 15252-8035, Telephone:
877-296-3711.
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 19
Directors and Officers
Number of
IQ Advisors-
Affiliate
Advised Funds Other Public
Position(s) Length of and Portfolios Directorships
Held with Time Overseen By Held by
Name Address & Age Fund Served** Principal Occupation(s) During Past 5 Years Director Director
====================================================================================================================================
Non-Interested Directors*
- ------------------------------------------------------------------------------------------------------------------------------------
Paul P.O. Box 9095 Director & 2006 to Professor, Columbia University Business School 11 None
Glasserman Princeton, NJ Chairman of present since 1991; Senior Vice Dean since July 2004.
08543-9095 the Audit
Age: 45 Committee
- ------------------------------------------------------------------------------------------------------------------------------------
Steven W. P.O. Box 9095 Director & 2006 to Retired since August 2002; Managing Director, 11 Ametek, Inc.
Kohlhagen Princeton, NJ Chairman of present Wachovia National Bank and its predecessors
08543-9095 Nominating (1992 - 2002).
Age: 60 & Corporate
Governance
Committee
- ------------------------------------------------------------------------------------------------------------------------------------
William J. P.O. Box 9095 Director & 2006 to Retired since November 2004; Chairman and 11 None
Rainer Princeton, NJ Chairman of present Chief Executive Officer, OneChicago, LLC, a
08543-9095 the Board designated contract market (2001 - 2004);
Age: 61 Chairman, U.S. Commodity Futures
Trading Commission (1999 - 2001).
- ------------------------------------------------------------------------------------------------------------------------------------
Laura S. P.O. Box 9095 Director 2007 to Independent Consultant; Commissioner of the 11 CA, Inc.
Unger Princeton, NJ present Securities and Exchange Commission (1997 - (software) and
08543-9095 2002), including Acting Chairperson of the SEC Ambac Financial
Age: 46 from February to August 2001; Regulatory Expert Group, Inc.
for CNBC (2002 - 2003).
------------------------------------------------------------------------------------------------------------------------
* Each of the Non-Interested Directors is a member of the Audit Committee and the Nominating and Corporate
Governance Committee.
** Each Director will serve for a term of one year and until his successor is elected and qualifies, or his earlier
death, resignation or removal as provided in the Fund's Bylaws, charter or by statute.
20 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Directors and Officers (concluded)
Position(s) Length of
Held with Time
Name Address & Age Fund Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers*
- ------------------------------------------------------------------------------------------------------------------------------------
Mitchell P.O. Box 9011 President 2006 to IQ Investment Advisors LLC, President since April 2004; MLPF&S, Managing
M. Cox Princeton, NJ present Director, Head of Global Investments & Insurance Solutions and Head of Global
08543-9011 Alternative Investments since 2008; MLPF&S, Managing Director, Head of Financial
Age: 42 Products Group since 2007; Head of Global Wealth Management Market Investments &
Origination (2003 - 2007); MLPF&S, FAM Distributors ("FAMD"), Director since
2006; IQ Financial Products LLC, Director since 2006.
- ------------------------------------------------------------------------------------------------------------------------------------
Justin C. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Vice President since 2005; MLPF&S, Managing
Ferri Princeton, NJ President present Director, Structured and Alternative Solutions since 2008; MLPF&S, Director,
08543-9011 Structured and Alternative Solutions in 2007; Director, Global Wealth Management
Age: 32 Market Investments & Origination (2005 - 2007); MLPF&S, Vice President, Global
Private Client Market Investments & Origination (2005); MLPF&S, Vice President,
Head of Global Private Client Rampart Equity Derivatives (2004 - 2005); MLPF&S,
Vice President, Co-Head Global Private Client Domestic Analytic Development
(2002 - 2004); mPower Advisors LLC, Vice President, Quantitative Development
(1999 - 2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Secretary and Treasurer (2004 - March 2007);
Burke Princeton, NJ President present BlackRock, Inc., Managing Director since 2006; Merrill Lynch Investment
08543-9011 and Managers, L.P. ("MLIM") and Fund Asset Management ("FAM") Managing Director
Age: 47 Secretary (2006); MLIM and FAM, First Vice President (1997 - 2005) and Treasurer (1999 -
2006); Princeton Services, Inc., Senior Vice President and Treasurer (1999 -
2006).
- ------------------------------------------------------------------------------------------------------------------------------------
James E. P.O. Box 9011 Vice 2007 to IQ Investment Advisors LLC, Treasurer since March 2007; MLPF&S, Director,
Hillman Princeton, NJ President present Structured and Alternative Solutions since 2007; Director, Global Wealth
08543-9011 and Management Market Investments & Origination (September 2006 - 2007); Managed
Age: 50 Treasurer Account Advisors LLC, Vice President and Treasurer since November 2006;
Director, Citigroup Alternative Investments Tax Advantaged Short Term Fund in
2006; Director, Korea Equity Inc. Fund in 2006; Independent Consultant, January
to September 2006; Managing Director, The Bank of New York, Inc. (1999 - 2006).
- ------------------------------------------------------------------------------------------------------------------------------------
Catherine P.O. Box 9011 Chief 2007 to IQ Investment Advisors LLC, Chief Compliance Officer since April 2007; Merrill
A. Princeton, NJ Compliance present Lynch & Co., Inc., Director, Corporate Compliance since September 2007;
Johnston 08543-9011 Officer BlackRock, Inc., Director (2006 - 2007); MLIM, Director (2003 - 2006), Vice
Age: 53 President (1998 - 2003).
- ------------------------------------------------------------------------------------------------------------------------------------
Martin G. P.O. Box 9011 Chief 2006 to IQ Investment Advisors LLC, Chief Legal Officer since June 2006; Merrill Lynch &
Byrne Princeton, NJ Legal present Co., Inc., Office of General Counsel, Managing Director since 2006, First Vice
08543-9011 Officer President (2002 - 2006), Director (2000 - 2002); Managed Account Advisors LLC,
Age: 45 Chief Legal Officer since November 2006; FAMD, Director since 2006.
- ------------------------------------------------------------------------------------------------------------------------------------
Jay M. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Vice President (2005 - March 2007); BlackRock, Inc.,
Fife Princeton, NJ President present Managing Director since 2007; BlackRock, Inc., Director in 2006; MLIM, Director
08543-9011 (2000 - 2006); MLPF&S, Director (2000) and Vice President (1997 - 2000).
Age: 37
- ------------------------------------------------------------------------------------------------------------------------------------
Colleen R. P.O. Box 9011 Vice 2006 to IQ Investment Advisors LLC, Chief Administrative Officer and Secretary since
Rusch Princeton, NJ President present 2007, Vice President since 2005; MLPF&S, Director, Structured and Alternative
08543-9011 and Solutions since 2007; MLPF&S, Director, Global Wealth Management Market
Age: 40 Assistant Investments & Origination (2005 - 2007); MLIM, Director from January 2005 to
Secretary July 2005; Vice President of MLIM (1998 - 2004).
------------------------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Board of Directors.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
BNY Mellon Shareowner Services
480 Washington Boulevard
Jersey City, NJ 07310
NYSE Symbol
GCF
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 21
Proxy Results
During the six-month period ended December 31, 2007, Global Income & Currency
Fund Inc.'s shareholders voted on the following proposal. On November 13, 2007
and December 21, 2007, special meetings of shareholders were adjourned with
respect to the proposal until January 10, 2008, at which time it was approved. A
description of the proposal and number of shares voted are as follows:
- -----------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
- -----------------------------------------------------------------------------------------------------
To approve a new investment subadvisory agreement
with Nuveen Asset Management 3,250,207 121,078 117,769
- -----------------------------------------------------------------------------------------------------
22 GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at
http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the
SEC's Public Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
The Fund offers electronic delivery of communications to its shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this website
at http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification number
(PIN). You will need this PIN should you wish to update your e-mail address,
choose to discontinue this service and/or make any other changes to the service.
This service is not available for certain retirement accounts at this time.
Contact Information
For more information regarding the Fund, please visit www.IQIAFunds.com or
contact us at 1-877-449-4742.
GLOBAL INCOME & CURRENCY FUND INC. DECEMBER 31, 2007 23
[LOGO]
IQ
INVESTMENT
ADVISORS www.IQIAFunds.com
Global Income & Currency Fund Inc. seeks to achieve its investment objective by
constructing and actively managing a portfolio of investments that provides long
and short exposure to selected foreign currencies.
This report, including the financial information herein, is transmitted to
shareholders of Global Income & Currency Fund Inc. for their information. It is
not a prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Statements and other
information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge at
www.IQIAFunds.com/proxyvoting.asp or upon request by calling toll-free
1-877-449-4742 or through the Securities and Exchange Commission's website at
http://www.sec.gov. Information about how the Fund voted proxies relating to
securities held in the Fund's portfolio during the most recent 12-month period
ended June 30 is available (1) at www.IQIAFunds.com/proxyvoting.asp; and (2) on
the Securities and Exchange Commission's website at http://www.sec.gov.
Global Income & Currency Fund Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
#IQGCF -- 12/07
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report, that
applies to the registrant's principal executive officer, principal
financial officer and principal accounting officer, or persons
performing similar functions. During the period covered by this
report, there have been no amendments to or waivers granted under
the code of ethics. A copy of the code of ethics is available
without charge upon request by calling toll-free 1-877-449-4742.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1) Alan
R. Batkin (resigned as of February 22, 2007) and (2) Steven W.
Kohlhagen.
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
- ----------------------------------------------------------------------------------------------------------------------------------
(a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees
- ----------------------------------------------------------------------------------------------------------------------------------
Current Previous Current Previous Current Previous Current Previous
Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal
Entity Name End Year End End Year End End Year End End Year End
- ----------------------------------------------------------------------------------------------------------------------------------
Global Income &
Currency Fund Inc. $28,000 $33,200 $0 $7,200 $8,500 $7,500 $0 $0
- ----------------------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services
reasonably related to the performance of the audit of financial statements
not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant.
Certain of these non-audit services that the Committee believes are
a) consistent with the SEC's auditor independence rules and b)
routine and recurring services that will not impair the independence
of the independent accountants may be approved by the Committee
without consideration on a specific case-by-case basis ("general
pre-approval"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. Any proposed services exceeding
the pre-approved cost levels will require specific pre-approval by
the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
--------------------------------------------------------------------
Current Fiscal Previous Fiscal
Entity Name Year End Year End
--------------------------------------------------------------------
Global Income & Currency Fund Inc. $2,102,500 $1,975,700
--------------------------------------------------------------------
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $0, 0%
Item 5 - Audit Committee of Listed Registrants - The following individuals
are members of the registrant's separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of the
Exchange Act (15 U.S.C. 78c(a)(58)(A)):
Alan R. Batkin (resigned as of February 22, 2007)
Steven W. Kohlhagen
Paul Glasserman
William J. Rainer
Laura S. Unger (effective September 12, 2007)
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - The registrant has delegated the
voting of proxies relating to its voting securities to its
investment sub-advisor, Nuveen Asset Management (the "Sub-adviser").
The Proxy Voting Policies and Procedures of the Sub-adviser (the
"Proxy Voting Policies") are attached as an Exhibit hereto.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of December 31, 2007.
(a)(1) Mr. Andrew J. Stenwall is responsible for the the day-to-day
management of the registrant's portfolio since 2006.
Mr. Stenwall leads the Sub-adviser's Taxable Fixed Income Team and
is responsible for developing and administering the portfolio
strategy of the team. Mr. Stenwall has been a Managing Director of
the Sub-adviser since August 2004. Prior to joining the Sub-adviser,
Mr. Stenwall served as the Fixed Income Chief Investment Officer for
Banc of America Capital Management ("BACAP") from 2002 through 2004,
prior to which he was a Managing Director in charge of BACAP's
taxable fixed income management and the leader of its structured
products.
(a)(2) As of December 31, 2007:
-----------------------------------------------------------------------------------------------------------------------
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
-----------------------------------------------------------------------------------------------------------------------
Other Other Other Other
(i) Name of Registered Pooled Registered Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
-----------------------------------------------------------------------------------------------------------------------
Andrew J.
Stenwall 7 0 4079 0 0 0
-----------------------------------------------------------------------------------------------------------------------
$1,163,950,000 $0 $661,252,564 $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------
(iv) Potential Material Conflicts of Interest
The Sub-adviser's Taxable Fixed Income Team's simultaneous
management of the Fund and the other registered investment companies
and other accounts noted above may present actual or apparent
conflicts of interest with respect to the allocation and aggregation
of securities and Currency Investments (as defined in the
Prospectus) orders placed on behalf of the Fund. The Sub-adviser has
adopted several policies that address such potential conflicts of
interest, including best execution and trade allocation policies
that are designed to ensure (1) that portfolio management is seeking
the best price for portfolio trades under the circumstances, (2)
fair and equitable allocation of investment opportunities among
accounts over time, and (3) compliance with applicable regulatory
requirements. All accounts are to be treated in a non-preferential
manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager.
In addition, the Sub-adviser has adopted a Code of Conduct that sets
forth policies regarding conflicts of interest.
(a)(3) As of December 31, 2007:
Compensation.
Salary and Cash Bonus. In addition to a salary and other guaranteed
compensation, each member of the investment team is eligible to
receive an annual cash bonus. The level of these bonuses and year to
year changes to base compensation are based upon evaluations and
determinations made by Mr. Stenwall for all team members reporting
to him, and for all team members, including Mr. Stenwall, upon
evaluations and determinations made by the CEO and President of the
Sub-adviser's parent company, Nuveen Investments, Inc. These reviews
and evaluations take into account a number of factors, including the
effectiveness of the team's investment strategies, the performance
of the accounts for which the team serves as portfolio management
relative to any benchmarks established for the accounts (which for
the Fund will be Fund's ability to meet the Fund's investment
objective), the team's and the individual's effectiveness in
communicating investment performance to shareholders and their
representatives, the team's and the individual's contribution to the
Sub-adviser's investment process and execution of investment
strategies, and the team's overall assets under management. The cash
bonus component is also impacted by the overall performance of the
parent company in achieving its business objectives.
Long-term incentive compensation. Each member of the investment team
is eligible to receive bonus compensation in the form of
equity-based awards comprised of securities issued by Nuveen
Investments, Inc. or options thereon, and/or other forms of
long-term deferred compensation. The amount of such compensation is
dependent upon the same factors articulated for cash bonus awards
but also takes into account the individual's long-term potential
with the firm.
(a)(4) Beneficial Ownership of Securities. As of December 31, 2007,
Mr. Stenwall did not beneficially own any stock issued by the
Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable due to no such
purchases during the period covered by this report.
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Corporate Governance Committee will
consider nominees to the Board recommended by shareholders when a
vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations which include biographical
information and set forth the qualifications of the proposed nominee
to the registrant's Secretary. There have been no material changes
to these procedures.
Item 11 - Controls and Procedures
11(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")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities and Exchange Act of 1934, as amended.
11(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)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
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.
Global Income & Currency Fund Inc.
By: /s/ Mitchell M. Cox
--------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of
Global Income & Currency Fund Inc.
Date: February 20, 2008
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: /s/ Mitchell M. Cox
--------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of
Global Income & Currency Fund Inc.
Date: February 20, 2008
By: /s/ James E. Hillman
--------------------
James E. Hillman
Chief Financial Officer (principal financial officer) of
Global Income & Currency Fund Inc.
Date: February 20, 2008