GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
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Valuation Inputs
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Level 1
Quoted Prices
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Level 2 Other Significant
Observable Inputs
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Level 3 Other Significant
Unobservable Inputs
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Total Market Value
at 12/31/12
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INVESTMENTS IN SECURITIES:
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LIABILITIES (Market Value):
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EQUITY CONTRACTS:
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Call Options Written
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$
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(17,630,019
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)
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$
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(12,809,996
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)
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$
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(30,440,015
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)
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Put Options Written
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(4,498,650
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)
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(5,841,800
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(10,340,450
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TOTAL INVESTMENTS IN SECURITIES
LIABILITIES
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$
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(22,128,669
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)
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$(18,651,796
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$(40,780,465
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(a)
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Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
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The Fund did not have transfers between Level 1 and Level 2 during the year ended December 31, 2012. The Funds policy is to recognize
transfers among Levels as of the beginning of the reporting period.
Additional Information to Evaluate Qualitative Information.
General.
The Fund uses recognized industry pricing services approved by the Board and unaffiliated with
the Adviser to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity
securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied
by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a
broker/dealer that trades that security or similar securities.
Fair Valuation.
Fair valued
securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days,
or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not
publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. The circumstances of Level 3 securities are frequently monitored to determine if
fair valuation measures continue to apply.
The Adviser reports quarterly to the Board the results of the application of fair valuation
policies and procedures. These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.
Derivative Financial Instruments.
The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of increasing the income
of the Fund. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks.
Losses may arise if the Advisers prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or
that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other
14
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
contractual remedies owed to it under
derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund
would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Funds ability to pay distributions.
The Funds derivative contracts held at December 31, 2012, if any, are not accounted for as hedging instruments under GAAP and are
disclosed in the Schedule of Investments together with the related counterparty.
Swap Agreements.
The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from
those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference
interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short-term interest rates and the returns on the Funds
portfolio securities at the time an equity contract for difference swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will
not be as favorable as on the expiring transaction.
Unrealized gains related to swaps are reported as an asset and unrealized losses
are reported as a liability in the Statement of Assets and Liabilities. The change in value of swaps, including the accrual of periodic amounts of interest to be received or paid on swaps, is reported as unrealized gain or loss in the Statement of
Operations. A realized gain or loss is recorded upon receipt or payment of a periodic payment or termination of swap agreements. During the year ended December 31, 2012, the Fund held no investments in equity contract for difference swap
agreements.
Options.
The Fund may purchase or write call or put options on securities or indices
for the purpose of increasing the income of the Fund. As a writer of put options, the Fund receives a premium at the outset and then bears the risk of unfavorable changes in the price of the financial instrument underlying the option. The Fund would
incur a loss if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. The Fund would realize a gain, to the extent of the premium, if the price of the
financial instrument increases between those dates. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a written put
option is exercised, the premium reduces the cost basis of the security.
As a purchaser of put options, the Fund pays a premium for the
right to sell to the seller of the put option the underlying security at a specified price. The seller of the put has the obligation to purchase the underlying security upon exercise at the exercise price. If the price of the underlying security
declines, the Fund would realize a gain upon sale or exercise. If the price of the underlying security increases or stays the same, the Fund would realize a loss upon sale or at the expiration date, but only to the extent of the premium paid.
In the case of call options, these exercise prices are referred to as in-the-money, at-the-money, and
out-of-the-money, respectively. The Fund may write (a) in-the-money call options when the Adviser expects that the
15
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
price of the underlying security will remain
stable or decline during the option period, (b) at-the-money call options when the Adviser expects that the price of the underlying security will remain stable, decline, or advance moderately during the option period, and
(c) out-of-the-money call options when the Adviser expects that the premiums received from writing the call option will be greater than the appreciation in the price of the underlying security above the exercise price. By writing a call option,
the Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the reverse of call options as to the
relation of exercise price to market price) may be utilized in the same market environments that such call options are used in equivalent transactions. Option positions at December 31, 2012 are reflected within the Schedule of Investments.
The Funds volume of activity in equity options contracts during the year ended December 31, 2012 had an average monthly
market value of approximately $40,863,845. Please refer to Note 4 for option activity during the year ended December 31, 2012.
As
of December 31, 2012, the value of equity option positions can be found in the Statement of Assets and Liabilities under Liabilities, Call options written and Put options written. For the year ended December 31, 2012, the effect of equity
option positions can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on Investments, Written Options, and Foreign Currency, Net realized gain on written options and Net change in unrealized
appreciation/depreciation on written options.
Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and
Swaps.
Subject to the guidelines of the Board, the Fund may engage in commodity interest transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona
fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (CFTC). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act
(CEA), the Adviser has filed a notice of exemption from registration as a commodity pool operator with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool
operator under the CEA. Due to the recent amendments to Rule 4.5 under the CEA, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest
transactions that include (i) bona fide hedging transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Funds assets committed to margin and options premiums and
(ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Funds existing
futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Funds liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or
(b) the aggregate net notional value of the Funds commodity interest transactions would not exceed 100% of the market value of the Funds liquidating value, after taking into account unrealized profits and unrealized losses on any
such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and
financial futures contracts). As a result, in the future, the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and
on the Funds performance.
16
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
Securities Sold Short.
The
Fund may enter into short sale transactions. Short selling involves selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at
a later date. The proceeds received from short sales are recorded as liabilities and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of
determination. The Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales
are recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The broker retains collateral for the value of the open positions, which is adjusted periodically as the value of the position
fluctuates. At December 31, 2012, there were no short sales outstanding.
Foreign Currency Translations.
The books
and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses
are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in
unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and
settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign
currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.
Foreign Securities.
The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves
special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future
adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.
Foreign Taxes.
The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which
may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Securities Transactions and Investment Income.
Securities transactions are accounted for on the trade date with realized gain or loss
on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.
Custodian Fee Credits and Interest Expense.
When cash balances are maintained in the custody account, the Fund receives
credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as Custodian fee
credits. When cash balances are overdrawn, the Fund is charged an
17
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
overdraft fee equal to 110% of the 90 day
Treasury Bill rate on outstanding balances. This amount, if any, would be included in the Statement of Operations.
Distributions
to Shareholders.
Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ
from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and
differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. Permanent differences are primarily due to tax treatment of currency gains and
losses, reclassification of passive foreign investment companies capital gain, disallowed expenses, and sale adjustments on investments no longer considered passive foreign investment companies. These reclassifications have no impact on the NAV of
the Fund. For the year ended December 31, 2012, reclassifications were made to decrease accumulated distributions in excess of net investment income by $2,400,752 and increase accumulated net realized loss on investments, written options, and
foreign currency transactions by $2,146,116, with an offsetting adjustment to paid-in capital.
Distributions to shareholders of the
Funds 6.625% Series A Cumulative Preferred Shares (Series A Preferred) are accrued on a daily basis.
The tax
character of distributions paid during the years ended December 31, 2012 and December 31, 2011 was as follows:
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Year Ended
December 31, 2012
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Year Ended
December 31, 2011
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Common
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Preferred
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Common
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Preferred
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Distributions paid from:
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Ordinary income
(inclusive of short-term capital gains)
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$
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103,573,918
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$
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5,687,137
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$
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86,125,615
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$
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5,357,076
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Net long-term capital gains
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16,075,107
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|
882,668
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19,204,452
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|
|
|
1,194,531
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Return of capital
|
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|
20,768,374
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3,369,928
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Total distributions paid
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$
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140,417,399
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$
|
6,569,805
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$
|
108,699,995
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$
|
6,551,607
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Provision for Income Taxes.
The Fund intends to continue to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of
its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.
18
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
As of December 31, 2012, the components of accumulated
earnings/losses on a tax basis were as follows:
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Net unrealized depreciation on investments, written options, and foreign currency translations
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$
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(227,647,916
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)
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Qualified late year loss deferral*
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(2,361,211
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)
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Other temporary differences**
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(109,193
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)
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Total
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$
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(230,118,320
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)
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*
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Under the current law, qualified late year losses realized after October 31 and prior to the Funds year end may be elected as occurring on the
first day of the following year. For the year ended December 31, 2012, the Fund elected to defer $2,361,211 of late year long-term capital losses.
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**
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Other temporary differences are primarily due to adjustments on preferred share class distribution payables.
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Under the Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward for an unlimited period capital
losses incurred in years beginning after December 22, 2010. As a result of the rule, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being
considered all short-term as under previous law.
At December 31, 2012, the differences between book basis and tax basis
appreciation/depreciation were primarily due to deferral of wash sales for tax purposes, cumulative mark-to-market adjustments on passive foreign investment companies, straddle loss deferral, and investments no longer considered passive foreign
investment companies.
The following summarizes the tax cost of investments, written options, and the related net unrealized
depreciation at December 31, 2012:
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Cost/
Premiums
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Gross
Unrealized
Appreciation
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Gross
Unrealized
Depreciation
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Net
Unrealized
Depreciation
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Investments
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$
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1,717,977,826
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$
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21,884,462
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$
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(261,929,668
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)
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$
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(240,045,206
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)
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Written options
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(53,189,707
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)
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22,400,471
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(9,991,229
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)
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12,409,242
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$
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44,284,933
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$
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(271,920,897
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)
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$
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(227,635,964
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)
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The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the
Funds tax returns to determine whether the tax positions are more-likely-than-not of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in
the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the year ended December 31, 2012, the Fund did not incur any income tax, interest, or penalties. As of December 31, 2012, the
Adviser has reviewed all open tax years and concluded that there was no impact to the Funds net assets or results of operations. Tax years ended December 31, 2009 through December 31, 2012 remain subject to examination by the
Internal Revenue Service and state taxing authorities. On an ongoing basis, the Adviser will monitor the Funds tax positions to determine if adjustments to this conclusion are necessary.
3. Agreements and Transactions with Affiliates.
The Fund has entered into an investment advisory agreement (the Advisory
Agreement) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of the Funds average weekly net assets including the liquidation value
of preferred shares. In accordance with the Advisory Agreement, the
19
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
Adviser provides a continuous investment
program for the Funds portfolio and oversees the administration of all aspects of the Funds business and affairs.
The cost
of calculating the Funds NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. During the year ended December 31, 2012, the Fund paid or accrued $45,000 to the Adviser in connection with the
cost of computing the Funds NAV.
As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by
the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser). For the year ended December 31, 2012, the Fund paid or accrued $186,688 in payroll expenses
in the Statement of Operations.
The Fund pays each Trustee who is not considered an affiliated person an annual retainer of $15,000
plus $2,000 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000 per meeting attended, the Audit Committee Chairman receives
an annual fee of $3,000, the Nominating Committee Chairman and the Lead Trustee each receive an annual fee of $2,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on
behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.
4. Portfolio Securities.
Purchases and sales of securities during the year ended December 31, 2012, other than short-term securities and U.S. Government obligations, aggregated $893,981,160 and
$526,225,364, respectively.
Written options activity for the Fund for the year ended December 31, 2012 was as follows:
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Number of
Contracts
|
|
|
Premiums
|
|
Options outstanding at December 31, 2011
|
|
|
241,376
|
|
|
$
|
34,990,879
|
|
Options written
|
|
|
2,649,084
|
|
|
|
175,121,956
|
|
Options repurchased
|
|
|
(394,731
|
)
|
|
|
(51,152,922
|
)
|
Options expired
|
|
|
(702,771
|
)
|
|
|
(78,741,591
|
)
|
Options exercised
|
|
|
(1,349,329
|
)
|
|
|
(27,028,615
|
)
|
|
|
|
|
|
|
|
|
|
Options outstanding at December 31, 2012
|
|
|
443,629
|
|
|
$
|
53,189,707
|
|
|
|
|
|
|
|
|
|
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5. Capital.
The Fund is authorized to issue an unlimited number of common shares of beneficial interest (par
value $0.001). The Board has authorized the repurchase of its shares in the open market when the shares are trading at a discount of 7.5% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares.
During the year ended December 31, 2012 and the year ended December 31, 2011, the Fund did not repurchase any shares of beneficial interest.
The Fund filed a third shelf offering with the SEC that was effective February 3, 2011, enabling the Fund to offer $750,000,000 additional common and preferred shares. The Fund filed a second $350,000,000
shelf offering with the SEC that was effective February 10, 2010, enabling the Fund to offer additional common and preferred shares. The first $350,000,000 shelf offering became effective September 24, 2007. This shelf offering also gave
the Fund the ability to offer additional common and preferred shares.
20
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
On October 16, 2007, the Fund completed
the placement of $100 million of Series A Preferred. The Fund received net proceeds of $96,450,000 (after underwriting discounts of $3,150,000 and offering expenses of $400,000) from the public offering of 4,000,000 shares of Series A Preferred. The
Series A Preferred is senior to the common shares and results in the financial leveraging of the common shares. Such leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on the Series A Preferred are
cumulative. The Fund is required by the 1940 Act and by the Statement of Preferences to meet certain asset coverage tests with respect to the Series A Preferred. If the Fund fails to meet these requirements and does not correct such failure, the
Fund may be required to redeem, in part or in full, the Series A Preferred at the redemption price of $25 per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet the
requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Funds ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income
received on the Funds assets may vary in a manner unrelated to the fixed rate, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.
The Fund, at its option, may redeem the Series A Preferred in whole or in part at the redemption price. The Board has authorized the repurchase of
the Series A Preferred in the open market at prices less than the $25 liquidation value per share. During the year ended December 31, 2012, the Fund did not repurchase any shares of Series A Preferred. At December 31, 2012, 3,955,687
Series A Preferred were outstanding and accrued dividends amounted to $109,193.
The following table summarizes the data relating to the at the
market offering of the Funds common shares:
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|
|
|
|
|
|
|
Year
|
|
Shares
Issued
|
|
|
Net
Proceeds
|
|
|
Sales
Manager
Commissions
|
|
|
Offering
Expenses
|
|
|
Net
Proceeds in
Excess of NAV
|
|
2012
|
|
|
24,262,186
|
|
|
$
|
342,349,325
|
|
|
|
$3,022,059
|
|
|
|
$114,456
|
|
|
|
$12,795,059
|
|
2011
|
|
|
18,712,456
|
|
|
|
317,451,924
|
|
|
|
3,206,585
|
|
|
|
336,311
|
|
|
|
7,892,843
|
|
As of December 31, 2012, after considering the issuance of the common shares, the Fund has approximately $93
million available for issuance under the current shelf offering.
Transactions in shares of beneficial interest were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
Year Ended
December 31, 2011
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
Shares issued pursuant to shelf offerings
|
|
|
24,262,186
|
|
|
$
|
342,349,325
|
|
|
|
18,712,456
|
|
|
$
|
317,451,924
|
|
Net increase from shares issued upon reinvestment of distributions
|
|
|
700,466
|
|
|
|
9,844,212
|
|
|
|
712,143
|
|
|
|
11,816,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
24,962,652
|
|
|
$
|
352,193,537
|
|
|
|
19,424,599
|
|
|
$
|
329,268,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Indemnifications.
The Fund enters into contracts that contain a variety of indemnifications. The
Funds maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds existing contracts and expects the risk of loss to be remote.
7. Other Matters.
On April 24, 2008, the Adviser entered into a settlement with the SEC to resolve an inquiry regarding
prior frequent trading in shares of the GAMCO Global Growth Fund (the Global Growth Fund) by
21
GAMCO Global Gold, Natural Resources & Income Trust
by
Gabelli
Notes to Financial Statements (Continued)
one investor who was banned from the Global
Growth Fund in August 2002. Under the terms of the settlement, the Adviser, without admitting or denying the SECs findings and allegations, paid $16 million (which included a $5 million civil monetary penalty). On the same day, the SEC filed a
civil action in the U.S. District Court for the Southern District of New York against the Executive Vice President and Chief Operating Officer of the Adviser, alleging violations of certain federal securities laws arising from the same matter. The
officer, who also is an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO complex, including this Fund, denies the allegations and is continuing in his positions with the Adviser and the funds. The settlement by the Adviser did
not have, and the resolution of the action against the officer is not expected to have, a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement.
8. Subsequent Events.
Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial
statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
22
GAMCO GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST by Gabelli
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
GAMCO Global Gold, Natural Resources Income Trust by Gabelli:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of GAMCO Global Gold, Natural Resources & Income Trust by Gabelli, formerly Gabelli Global Gold, Natural Resources & Income Trust (hereafter referred to as the
Trust) at December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of
the Trusts management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 28, 2013
23
GAMCO GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
by
Gabelli
Additional Fund Information (Unaudited)
The business and affairs of the Fund are managed under the direction of the Funds Board of Trustees. Information pertaining to the Trustees and officers of the Fund is set forth below. The Funds
Statement of Additional Information includes additional information about the Funds Trustees and is available without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to GAMCO Global Gold, Natural Resources &
Income Trust by Gabelli at One Corporate Center, Rye, NY 10580-1422.
|
|
|
|
|
|
|
|
|
Name,
Position(s)
Address
1
and Age
|
|
Term of Office
and
Length of
Time
Served
2
|
|
Number of
Funds in Fund
Complex
Overseen
by
Trustee
|
|
Principal Occupation(s)
During Past Five Years
|
|
Other Directorships
Held by Trustee
4
|
|
|
|
|
INTERESTED TRUSTEE:
|
|
|
|
|
|
|
|
|
|
|
|
Salvatore M. Salibello
3
Trustee
Age: 67
|
|
Since 2005***
|
|
3
|
|
Certified Public Accountant and Former Managing Partner of the public accounting firm Salibello & Broder LLP (1978-2012); Partner of BDO USA, LLP since 2012
|
|
Director of Kid Brands, Inc. (group of
companies in infant and juvenile products) and until September 2007, Director of Brooklyn Federal Bank Corp., Inc. (independent community
bank)
|
|
|
|
|
INDEPENDENT
TRUSTEES
5
:
|
|
|
|
|
|
|
|
|
|
|
|
Anthony J. Colavita
Trustee
Age: 77
|
|
Since 2005**
|
|
35
|
|
President of the law firm of Anthony J. Colavita, P.C.
|
|
|
|
|
|
|
|
James P. Conn
Trustee
Age: 74
|
|
Since 2005***
|
|
19
|
|
Former Managing Director and Chief Investment Officer of Financial Security Assurance Holdings Ltd. (insurance holding company) (1992-1998)
|
|
Director of First Republic Bank (banking)
through January 2008
|
|
|
|
|
|
Mario dUrso
Trustee
Age: 72
|
|
Since 2005*
|
|
5
|
|
Chairman of Mittel Capital Markets S.p.A., since 2001; Senator in the Italian Parliament (1996-2001)
|
|
|
|
|
|
|
|
Vincent D. Enright
Trustee
Age: 69
|
|
Since 2005*
|
|
17
|
|
Former Senior Vice President and Chief Financial Officer of KeySpan Corporation (public utility) (1994-1998)
|
|
Director of Echo Therapeutics,
Inc.
(therapeutics and diagnostics); Director of
the LGL Group, Inc., and Director of Aphton
Corporation (pharmaceuticals) until
September 2006
|
|
|
|
|
|
Frank J. Fahrenkopf,
Jr.
Trustee
Age: 73
|
|
Since 2005**
|
|
7
|
|
President and Chief Executive Officer of the American Gaming Association; Co-Chairman of the Commission on Presidential Debates; Former Chairman of the Republican National Committee
(1983-1989)
|
|
Director of First Republic Bank (banking)
|
|
|
|
|
|
Michael J. Melarkey
Trustee
Age: 63
|
|
Since 2005*
|
|
5
|
|
Partner in the law firm of Avansino, Melarkey, Knobel, Mulligan & McKenzie
|
|
Director of Southwest Gas Corporation
(natural gas utility)
|
|
|
|
|
|
Anthonie C. van Ekris
Trustee
Age: 78
|
|
Since 2005***
|
|
20
|
|
Chairman of BALMAC International, Inc. (commodities and futures trading)
|
|
|
|
|
|
|
|
Salvatore J. Zizza
Trustee
Age: 67
|
|
Since 2005**
|
|
29
|
|
Chairman (since 1978) of Zizza & Associates Corp. (financial consulting); Chairman (since 2005) of Metropolitan Paper Recycling, Inc. (recycling); Chairman (since 2009) of E-Corp
English (business services)
|
|
Chairman of Harbor BioSciences,
Inc.
(biotechnology); Director of Trans-Lux
Corporation (business services); Chairman of
Bion Environmental Technologies (technology)
|
24
GAMCO GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
by
Gabelli
Additional Fund Information (Continued) (Unaudited)
|
|
|
|
|
Name, Position(s)
Address
1
and Age
|
|
Term of
Office and
Length of
Time Served
2
|
|
Principal Occupation(s)
During Past Five Years
|
OFFICERS:
|
|
|
|
|
|
|
|
Bruce N. Alpert
President and
Acting Chief Compliance
Officer
Age: 61
|
|
Since 2005
Since November
2011
|
|
Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988;
Officer of all of the registered investment companies in the Gabelli/GAMCO Funds
Complex;
Director of Teton Advisors, Inc. 1998-2012; Chairman of Teton Advisors, Inc.
2008 - 2010; President of Teton Advisors, Inc. 1998 - 2008; Senior Vice President of
GAMCO Investors, Inc. since 2008.
|
|
|
|
Agnes Mullady
Treasurer and Secretary
Age: 54
|
|
Since 2006
|
|
President and Chief Operating Officer of the Open-End Fund Division of Gabelli Funds, LLC
since September 2010; Senior Vice President of GAMCO Investors, Inc. since 2009;
Vice
President of Gabelli Funds, LLC since 2007; Officer of all of the registered investment
companies in the Gabelli/GAMCO Funds Complex
|
|
|
|
Carter W. Austin
Vice President
Age: 46
|
|
Since 2005
|
|
Vice President and/or Ombudsman of other closed-end funds within the Gabelli/GAMCO
Funds Complex; Vice President of Gabelli Funds, LLC since 1996
|
|
|
|
Molly A.F. Marion
Vice President and
Ombudsman
Age: 58
|
|
Since 2005
|
|
Vice President and/or Ombudsman of other closed-end funds within the Gabelli/GAMCO
Funds complex
|
|
|
|
Laurissa M. Martire
Vice President and
Ombudsman
Age: 36
|
|
Since 2010
|
|
Vice President and/or Ombudsman of closed-end funds within the Gabelli/GAMCO Funds
complex
|
|
|
|
David I. Schachter
Vice President
Age: 59
|
|
Since 2011
|
|
Vice President and/or Ombudsman of other closed-end funds within the Gabelli/GAMCO
Funds Complex; Vice President of Gabelli & Company, Inc. since 1999
|
1
|
Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
|
2
|
The Funds Board of Trustees is divided into three classes, each class having
a term of three years. Each year the term of office of one class expires and the successor or successors elected to such class serve for a three year term. The three year term for each class expires as follows:
|
|
|
|
|
|
|
|
|
|
*
|
|
|
|
Term expires at the Funds 2013 Annual Meeting of Shareholders or until their successors are duly elected and qualified.
|
|
|
**
|
|
|
|
Term expires at the Funds 2014 Annual Meeting of Shareholders or until their successors are duly elected and qualified.
|
|
|
***
|
|
|
|
Term expires at the Funds 2015 Annual Meeting of Shareholders or until their successors are duly elected and qualified.
|
|
Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified.
|
3
|
Interested person of the Fund as defined in the 1940 Act.
Mr. Salibello is an interested person as a result of a family members affiliation with the Adviser.
|
4
|
This column includes only directorships of companies required to report to the SEC
under the Securities Exchange Act of 1934, as amended, i.e., public companies, or other investment companies registered under the 1940 Act.
|
5
|
Trustees who are not interested persons are considered Independent
Trustees.
|
25
GAMCO GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
by Gabelli
INCOME TAX INFORMATION
(Unaudited)
December 31, 2012
Cash Dividends and Distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
Date
|
|
|
Record
Date
|
|
|
Total Amount
Paid
Per Share (a)
|
|
|
Ordinary
Investment
Income (a)(d)
|
|
|
Long-Term
Capital
Gains (a)
|
|
|
Return of
Capital (b)
|
|
|
Foreign
Tax
Credit (d)
|
|
|
Dividend
Reinvestment
Price
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01/24/12
|
|
|
|
01/17/12
|
|
|
|
$0.14000
|
|
|
|
$0.12173
|
|
|
|
|
|
|
|
$0.01954
|
|
|
$
|
(0.00127
|
)
|
|
|
$15.37000
|
|
|
|
|
02/22/12
|
|
|
|
02/14/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
16.04000
|
|
|
|
|
03/23/12
|
|
|
|
03/16/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
15.22850
|
|
|
|
|
04/23/12
|
|
|
|
04/16/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
15.01000
|
|
|
|
|
05/23/12
|
|
|
|
05/16/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
13.27150
|
|
|
|
|
06/22/12
|
|
|
|
06/15/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
12.81550
|
|
|
|
|
07/24/12
|
|
|
|
07/17/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
12.61000
|
|
|
|
|
08/24/12
|
|
|
|
08/17/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
13.70000
|
|
|
|
|
09/21/12
|
|
|
|
09/14/12
|
|
|
|
0.14000
|
|
|
|
0.12173
|
|
|
|
|
|
|
|
0.01954
|
|
|
|
(0.00127
|
)
|
|
|
14.22000
|
|
|
|
|
10/24/12
|
|
|
|
10/17/12
|
|
|
|
0.12000
|
|
|
|
0.10433
|
|
|
|
|
|
|
|
0.01676
|
|
|
|
(0.00109
|
)
|
|
|
13.63000
|
|
|
|
|
11/23/12
|
|
|
|
11/15/12
|
|
|
|
0.12000
|
|
|
|
0.02327
|
|
|
|
$0.08021
|
|
|
|
0.01676
|
|
|
|
(0.00024
|
)
|
|
|
13.46000
|
|
|
|
|
12/20/12
|
|
|
|
12/14/12
|
|
|
|
0.12000
|
|
|
|
0.02327
|
|
|
|
0.08021
|
|
|
|
0.01676
|
|
|
|
(0.00024
|
)
|
|
|
12.84870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1.62000
|
|
|
|
$1.24644
|
|
|
|
$0.16042
|
|
|
|
$0.22614
|
|
|
$
|
(0.01300
|
)
|
|
|
|
|
6.625% Series A Cumulative Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03/26/12
|
|
|
|
03/19/12
|
|
|
|
$0.41406
|
|
|
|
$0.41844
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.00438
|
)
|
|
|
|
|
|
|
|
06/26/12
|
|
|
|
06/19/12
|
|
|
|
0.41406
|
|
|
|
0.41844
|
|
|
|
|
|
|
|
|
|
|
|
(0.00438
|
)
|
|
|
|
|
|
|
|
09/26/12
|
|
|
|
09/19/12
|
|
|
|
0.41406
|
|
|
|
0.41844
|
|
|
|
|
|
|
|
|
|
|
|
(0.00438
|
)
|
|
|
|
|
|
|
|
12/26/12
|
|
|
|
12/18/12
|
|
|
|
0.41406
|
|
|
|
0.19560
|
|
|
|
$0.22051
|
|
|
|
|
|
|
|
(0.00205
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1.65624
|
|
|
|
$1.45091
|
|
|
|
$0.22051
|
|
|
|
|
|
|
$
|
(0.01518
|
)
|
|
|
|
|
A Form 1099-DIV has been mailed to all shareholders of record which sets forth specific
amounts to be included in your 2012 tax returns. Ordinary distributions include net investment income, realized net short-term capital gains and foreign tax paid. Ordinary income is reported in box 1a of Form 1099-DIV. Capital gain distributions are
reported in box 2a of Form 1099-DIV.
The long-term gain distributions for the fiscal year ended
December 31, 2012 were $16,957,775, or the maximum amount.
Corporate Dividends Received Deduction, Qualified Dividend Income, and U.S.
Government Securities Income
In 2012, the Fund paid to common and 6.625% Series A Cumulative Preferred
shareholders ordinary income dividends of $1.2538 and $1.4487 per share, respectively. For 2012, 0.28% of the ordinary dividend qualified for the dividend received deduction available to corporations, 1.49% of the ordinary income distribution was
deemed qualified dividend income, and 0.79% of ordinary income distribution was qualified interest income, and 98.29% of the ordinary distribution was qualified short-term capital gain. The percentage of ordinary income dividends paid by the Fund
during 2012 derived from U.S. Government securities was 0.05%. Such income is exempt from state and local taxes in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if
a mutual fund has invested at least 50% of its assets at the end of each quarter of its fiscal year in U.S. Government securities. The Fund did not meet this strict requirement in 2012. The percentage of U.S. Government securities held as of
December 31, 2012 was 18.5%.
26
GAMCO GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
by Gabelli
INCOME TAX INFORMATION
(Unaudited) (Continued)
December 31, 2012
Historical Distribution Summary
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Investment
Income (c)(d)
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Short-Term
Capital
Gains (c)
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Long-Term
Capital
Gains
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Return of
Capital (b)
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Foreign
Tax
Credit (d)
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Total
Distributions
(a)
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Adjustment
to Cost
Basis
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Common Stock
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2012
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$0.04689
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$1.19955
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$0.16042
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$0.22614
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$(0.01300
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)
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$1.62000
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$0.22614
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2011
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0.09570
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1.28230
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0.26120
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0.04080
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1.68000
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0.04080
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2010
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0.34100
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1.11480
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0.22420
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1.68000
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2009
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0.25914
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0.28117
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0.12228
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1.01741
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1.68000
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1.01741
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2008
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0.11760
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0.39240
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1.17000
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1.68000
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1.17000
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2007
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0.14980
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0.98430
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0.79590
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1.93000
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2006
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1.45430
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0.28570
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1.74000
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2005
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0.08460
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1.07540
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1.16000
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6.625% Series A Cumulative Preferred Stock
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2012
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$0.05465
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$1.39626
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$0.22051
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$(0.01518
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)
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$1.65625
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2011
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0.09204
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1.26428
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0.29993
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1.65625
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2010
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0.32400
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1.06004
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0.27222
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1.65625
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2009
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0.60224
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0.65354
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0.40047
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1.65625
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2008
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0.38281
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1.27344
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1.65625
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2007
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0.01987
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0.09151
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0.21527
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0.32665
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(a)
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Total amounts may differ due to rounding.
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(c)
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Taxable as ordinary income for Federal tax purposes.
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(d)
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Per share ordinary investment income and investment income are grossed up for the foreign tax credit.
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All
designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal
Revenue Code and the regulations thereunder.
This Fund intends to generate current income from short-term gains primarily through its
strategy of writing (selling) covered call options on the equity securities in its portfolio. Because of its primary strategy the Fund forgoes the opportunity to participate fully in the appreciation of the underlying equity security above the
exercise price of the option. It also is subject to the risk of depreciation of the underlying equity security in excess of the premium received.
27
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
Enrollment in the Plan
It is the policy of GAMCO Global Gold, Natural Resources & Income Trust by Gabelli (the Fund) to automatically reinvest dividends payable to common shareholders. As a
registered shareholder, you automatically become a participant in the Funds Automatic Dividend Reinvestment Plan (the Plan). The Plan authorizes the Fund to credit shares of common stock to participants upon an income
dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested
pursuant to the Plan in additional shares of the Fund. Plan participants may send their stock certificates to American Stock Transfer (AST) to be held in their dividend reinvestment account. Registered shareholders wishing to receive
their distribution in cash must submit this request in writing to:
GAMCO Global Gold, Natural Resources & Income Trust
by Gabelli
c/o
American Stock Transfer
6201 15th Avenue
Brooklyn, NY 11219
Shareholders requesting this cash election must
include the shareholders name and address as they appear on the share certificate. Shareholders with additional questions regarding the Plan or requesting a copy of the terms of the Plan may contact AST at (888) 422-3262.
If your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution
is not participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such institution, it may be necessary for you to have your shares taken out of street name and
re-registered in your own name. Once registered in your own name, your dividends will be automatically reinvested. Certain brokers participate in the Plan. Shareholders holding shares in street name at participating institutions will
have dividends automatically reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change.
The number of shares of common shares distributed to participants in the Plan in lieu of cash dividends is determined in the following manner. Under the Plan, whenever the market price of the Funds
common shares is equal to or exceeds net asset value at the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains distribution, participants are issued shares of common shares
valued at the greater of (i) the net asset value as most recently determined or (ii) 95% of the then current market price of the Funds common stock. The valuation date is the dividend or distribution payment date or, if that date is
not a New York Stock Exchange (NYSE) trading day, the next trading day. If the net asset value of the common shares at the time of valuation exceeds the market price of the common shares, participants will receive shares from the Fund
valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, AST will buy common stock in the open market, or on the NYSE or elsewhere, for the participants accounts, except that AST will
endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following the commencement of such purchases, the market value of the common shares exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which
may be payable on such distributions. A participant in the Plan will be treated for federal income tax purposes as having received, on a dividend payment date, a dividend or distribution in an amount equal to the cash the participant could have
received instead of shares.
Voluntary Cash Purchase Plan
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In
order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to AST for investments in the Funds shares at the then current market price. Shareholders may send an
amount from $250 to $10,000. AST will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. AST will charge each shareholder who participates a pro rata share of the brokerage commissions. Brokerage
charges for such purchases are expected to be less than the usual brokerage charge for such transactions. It is suggested that any voluntary cash payments be sent to American Stock Transfer, 6201 15th Avenue, Brooklyn, NY 11219 such that AST
receives such payments approximately 10 days before the 1st and 15th of the month. Funds not received at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn without charge
if notice is received by AST at least 48 hours before such payment is to be invested.
Shareholders wishing to
liquidate shares held at AST must do so in writing or by telephone. Please submit your request to the above mentioned address or telephone number. Include in your request your name, address, and account number. The cost to liquidate shares is $1.00
per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage charge for such transactions.
For more information regarding the Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the Fund.
The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash payments made and any dividend or
distribution paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by AST on at least 90 days written
notice to participants in the Plan.
28
GAMCO GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
by Gabelli
AND YOUR PERSONAL PRIVACY
Who are we?
The GAMCO
Global Gold, Natural Resources & Income Trust by Gabelli (the Fund) is a closed-end management investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by
Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients.
What kind of non-public information do we collect about you if you become a Fund shareholder?
When you purchase shares of the Fund on the New York Stock Exchange, you have the option of registering directly with our transfer agent in order,
for example, to participate in our dividend reinvestment plan.
Information you give us on your application form.
This
could include your name, address, telephone number, social security number, bank account number, and other information.
Information about your transactions with us.
This would include information about the shares that you buy or sell; it may also include information about whether you sell or exercise rights that we have issued from time to time. If we hire
someone else to provide services like a transfer agent we will also have information about the transactions that you conduct through them.
What information do we disclose and to whom do we disclose it?
We do not disclose any non-public personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise
permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts
information about its regulations on its website, www.sec.gov.
What do we do to protect your personal information?
We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you
or the Fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.
This page was intentionally
left blank.
Investment Objective:
The GAMCO Global Gold, Natural Resources & Income Trust by Gabelli is a non-diversified, closed-end management investment company. The Funds investment objective is to provide a high level of current
income from interest, dividends, and option premiums. The Funds secondary investment objective is to seek capital appreciation consistent with the Funds strategy and its primary objective. Under normal market conditions, the Fund will
attempt to achieve its objectives by investing at least 80% of its assets in equity securities of companies principally engaged in the gold industry and the natural resources industries.
Stock Exchange Listing
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Common
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Series A
Preferred
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NYSE MKTSymbol:
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GGN
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GGN PrA
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Shares Outstanding:
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100,299,101
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3,955,687
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We have separated the portfolio managers commentary from the financial statements and
investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers commentary is unrestricted. The financial statements and
investment portfolio are mailed separately from the commentary. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.
The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading Specialized Equity Funds, in Mondays
The Wall Street Journal. It is also listed in Barrons Mutual Funds/Closed End Funds section under the heading Specialized Equity Funds.
The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.
The NASDAQ symbol for the Net Asset Value is XGGNX.
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940,
as amended, that the Fund may, from time to time, purchase its common shares in the open market when the Funds shares are trading at a discount of 7.5% or more from the net asset value of the shares. The Fund may also, from time to time,
purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.
GAMCO GLOBAL GOLD, NATURAL RESOURCES
& INCOME TRUST
BY GABELLI
One Corporate Center,
Rye, NY 10580-1422
t
800-GABELLI (800-422-3554)
f
914-921-5118
e
info@gabelli.com
GABELLI.COM
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TRUSTEES
Anthony J. Colavita
President,
Anthony J. Colavita, P.C.
James P. Conn
Former Managing Director
& Chief Investment
Officer,
Financial Security
Assurance Holdings Ltd.
Mario dUrso
Former Italian Senator
Vincent D. Enright
Former Senior Vice
President & Chief Financial
Officer, KeySpan Corp.
Frank J. Fahrenkopf, Jr.
President & Chief
Executive Officer,
American Gaming
Association
Michael J. Melarkey
Partner,
Avansino, Melarkey,
Knobel, Mulligan &
McKenzie
Salvatore M. Salibello, CPA
Partner,
BDO Seidman, LLP
Anthonie C. van Ekris
Chairman, BALMAC
International, Inc.
Salvatore J. Zizza
Chairman, Zizza &
Associates Corp.
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OFFICERS
Bruce N. Alpert
President & Acting Chief
Compliance Officer
Agnes Mullady
Treasurer & Secretary
Carter W.
Austin
Vice President
Molly A.F. Marion
Vice President &
Ombudsman
Laurissa M. Martire
Vice President &
Ombudsman
David I. Schachter
Vice President
INVESTMENT
ADVISER
Gabelli Funds, LLC
One Corporate Center Rye,
New York 10580-1422
CUSTODIAN
The Bank of New York Mellon
COUNSEL
Skadden, Arps, Slate,
Meagher & Flom LLP
TRANSFER
AGENT AND REGISTRAR
American Stock Transfer and Trust
Company
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GGN Q4/2012