The Gabelli Global Utility & Income Trust
Statement of Assets and Liabilities
June 30, 2020 (Unaudited)
|
|
|
|
|
Assets:
|
|
|
|
|
Investments, at value (cost $138,538,113)
|
|
$
|
150,341,345
|
|
Foreign currency, at value (cost $10,410)
|
|
|
10,446
|
|
Cash
|
|
|
84,997
|
|
Dividends receivable
|
|
|
350,327
|
|
Deferred offering expense
|
|
|
58,621
|
|
Prepaid expenses
|
|
|
2,126
|
|
|
|
|
|
|
Total Assets
|
|
|
150,847,862
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Distributions payable
|
|
|
35,849
|
|
Payable for investment advisory fees
|
|
|
62,398
|
|
Payable for payroll expenses
|
|
|
62,414
|
|
Payable for accounting fees
|
|
|
11,250
|
|
Payable for shareholder communications expenses
|
|
|
78,461
|
|
Payable for legal and audit fees
|
|
|
52,019
|
|
Other accrued expenses
|
|
|
53,172
|
|
|
|
|
|
|
Total Liabilities
|
|
|
355,563
|
|
|
|
|
|
|
Preferred Shares:
|
|
|
|
|
Series A Cumulative Preferred Shares ($50 liquidation value, $0.001 par value, 1,200,000 shares
authorized with 34,229 shares issued and outstanding)
|
|
|
1,711,450
|
|
Series B Cumulative Preferred Shares ($50 liquidation value, 1,370,433 shares authorized with
1,258,029 shares issued and outstanding)
|
|
|
62,901,450
|
|
|
|
|
|
|
Total Preferred Shares
|
|
|
64,612,900
|
|
|
|
|
|
|
Net Assets Attributable to Common Shareholders
|
|
$
|
85,879,399
|
|
|
|
|
|
|
Net Assets Attributable to Common Shareholders Consist of:
|
|
|
|
|
Paid-in capital
|
|
$
|
77,174,970
|
|
Total distributable earnings
|
|
|
8,704,429
|
|
|
|
|
|
|
Net Assets
|
|
$
|
85,879,399
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value per Common Share:
|
|
|
|
|
($85,879,399 ÷ 5,373,578 shares outstanding at $0.001 par value; unlimited number of shares
authorized)
|
|
$
|
15.98
|
|
|
|
|
|
|
Statement of Operations
For the Six Months Ended June 30, 2020 (Unaudited)
|
|
|
|
|
Investment Income:
|
|
|
|
|
Dividends (net of foreign withholding taxes of $131,088)
|
|
$
|
1,758,739
|
|
Interest
|
|
|
139,624
|
|
|
|
|
|
|
Total Investment Income
|
|
|
1,898,363
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Investment advisory fees
|
|
|
388,910
|
|
Payroll expenses
|
|
|
70,917
|
|
Shareholder communications expenses
|
|
|
44,570
|
|
Legal and audit fees
|
|
|
34,009
|
|
Trustees fees
|
|
|
26,961
|
|
Custodian fees
|
|
|
25,162
|
|
Accounting fees
|
|
|
22,500
|
|
Shareholder services fees
|
|
|
21,684
|
|
Interest expense
|
|
|
222
|
|
Miscellaneous expenses
|
|
|
32,233
|
|
|
|
|
|
|
Total Expenses
|
|
|
667,168
|
|
|
|
|
|
|
Less:
|
|
|
|
|
Expenses paid indirectly by broker (See Note 3)
|
|
|
(1,113
|
)
|
|
|
|
|
|
Net Expenses
|
|
|
666,055
|
|
|
|
|
|
|
Net Investment Income
|
|
|
1,232,308
|
|
|
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
|
|
|
|
|
Net realized loss on investments
|
|
|
(2,801,732
|
)
|
Net realized gain on foreign currency transactions
|
|
|
16,062
|
|
|
|
|
|
|
Net realized loss on investments and foreign currency transactions
|
|
|
(2,785,670
|
)
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation:
|
|
|
|
|
on investments
|
|
|
(17,798,073
|
)
|
on foreign currency translations
|
|
|
(2,254
|
)
|
|
|
|
|
|
Net change in unrealized appreciation/ depreciation on investments and foreign currency
translations
|
|
|
(17,800,327
|
)
|
|
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency
|
|
|
(20,585,997
|
)
|
|
|
|
|
|
Net Decrease in Net Assets Resulting from Operations
|
|
|
(19,353,689
|
)
|
|
|
|
|
|
Total Distributions to Preferred Stock Shareholders
|
|
|
(1,290,546
|
)
|
|
|
|
|
|
Net Decrease in Net Assets Attributable to Common Shareholders Resulting from
Operations
|
|
$
|
(20,644,235
|
)
|
|
|
|
|
|
See accompanying notes to
financial statements.
11
The Gabelli Global Utility & Income Trust
Statement of Changes in Net Assets Attributable to Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
2020
(Unaudited)
|
|
Year Ended
December 31,
2019
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$
|
1,232,308
|
|
|
|
$
|
3,072,938
|
|
Net realized gain/(loss) on investments, swap contracts, and foreign currency transactions
|
|
|
|
(2,785,670
|
)
|
|
|
|
5,643,568
|
|
Net change in unrealized appreciation/depreciation on investments, swap contracts, and foreign
currency translations
|
|
|
|
(17,800,327
|
)
|
|
|
|
11,144,414
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Resulting from Operations
|
|
|
|
(19,353,689
|
)
|
|
|
|
19,860,920
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Preferred Shareholders
|
|
|
|
|
|
|
|
|
|
|
Accumulated earnings
|
|
|
|
(1,143,366
|
)*
|
|
|
|
(4,445,514
|
)
|
Return of capital
|
|
|
|
(147,180
|
)*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Distributions to Preferred Shareholders.
|
|
|
|
(1,290,546
|
)
|
|
|
|
(4,445,514
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders Resulting from
Operations
|
|
|
|
(20,644,235
|
)
|
|
|
|
15,415,406
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
Accumulated earnings
|
|
|
|
|
|
|
|
|
(4,232,975
|
)
|
Return of capital
|
|
|
|
(3,222,205
|
)*
|
|
|
|
(2,210,216
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Distributions to Common Shareholders
|
|
|
|
(3,222,205
|
)
|
|
|
|
(6,443,191
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from common shares issued upon reinvestment of distributions
|
|
|
|
64,355
|
|
|
|
|
|
|
Net increase in net assets from repurchase of preferred shares
|
|
|
|
|
|
|
|
|
39,181
|
|
Offering costs charged to
paid-in-capital
|
|
|
|
|
|
|
|
|
15,102
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets from Fund Share Transactions
|
|
|
|
64,355
|
|
|
|
|
54,283
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders
|
|
|
|
(23,802,085
|
)
|
|
|
|
9,026,498
|
|
|
|
|
Net Assets Attributable to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
|
109,681,484
|
|
|
|
|
100,654,986
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
|
|
|
$
|
85,879,399
|
|
|
|
$
|
109,681,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Based on year to date book income. Amounts are subject to change and recharacterization at year end.
|
See accompanying notes to
financial statements.
12
The Gabelli Global Utility & Income Trust
Financial Highlights
Selected data for a common share of beneficial
interest outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
|
Year Ended December 31,
|
|
|
|
(Unaudited)
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
Operating Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
|
|
|
|
$
|
20.43
|
|
|
|
|
|
|
$
|
18.75
|
|
|
|
|
|
|
$
|
22.43
|
|
|
|
|
|
|
$
|
19.83
|
|
|
|
|
|
|
$
|
19.57
|
|
|
|
|
|
|
$
|
21.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
0.23
|
|
|
|
|
|
|
|
0.57
|
|
|
|
|
|
|
|
0.58
|
|
|
|
|
|
|
|
0.62
|
|
|
|
|
|
|
|
0.78
|
|
|
|
|
|
|
|
0.60
|
|
Net realized and unrealized gain/(loss) on investments, swap contracts, and foreign currency
transactions
|
|
|
|
|
|
|
(3.84
|
)
|
|
|
|
|
|
|
3.13
|
|
|
|
|
|
|
|
(2.15
|
)
|
|
|
|
|
|
|
3.65
|
|
|
|
|
|
|
|
1.11
|
|
|
|
|
|
|
|
(1.39
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
|
|
|
|
(3.61
|
)
|
|
|
|
|
|
|
3.70
|
|
|
|
|
|
|
|
(1.57
|
)
|
|
|
|
|
|
|
4.27
|
|
|
|
|
|
|
|
1.89
|
|
|
|
|
|
|
|
(0.79
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Preferred Shareholders: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
(0.21
|
)*
|
|
|
|
|
|
|
(0.29
|
)
|
|
|
|
|
|
|
(0.12
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
|
|
|
|
(0.24
|
)
|
|
|
|
|
|
|
(0.25
|
)
|
Net realized gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.54
|
)
|
|
|
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
(0.29
|
)
|
|
|
|
|
|
|
(0.19
|
)
|
|
|
|
|
|
|
(0.12
|
)
|
Return of capital
|
|
|
|
|
|
|
(0.03
|
)*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to preferred shareholders
|
|
|
|
|
|
|
(0.24
|
)
|
|
|
|
|
|
|
(0.83
|
)
|
|
|
|
|
|
|
(0.28
|
)
|
|
|
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders Resulting from
Operations
|
|
|
|
|
|
|
(3.85
|
)
|
|
|
|
|
|
|
2.87
|
|
|
|
|
|
|
|
(1.85
|
)
|
|
|
|
|
|
|
3.80
|
|
|
|
|
|
|
|
1.46
|
|
|
|
|
|
|
|
(1.16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.27
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.59
|
)
|
|
|
|
|
|
|
(0.22
|
)
|
Net realized gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.52
|
)
|
|
|
|
|
|
|
(0.64
|
)
|
|
|
|
|
|
|
(0.76
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.11
|
)
|
Return of capital
|
|
|
|
|
|
|
(0.60
|
)*
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.12
|
)
|
|
|
|
|
|
|
(0.87
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common shareholders
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(1.20
|
)
|
|
|
|
|
|
|
(1.20
|
)
|
|
|
|
|
|
|
(1.20
|
)
|
|
|
|
|
|
|
(1.20
|
)
|
|
|
|
|
|
|
(1.20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in net asset value from common shares issued in rights offering
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in net asset value from repurchase of preferred shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.00
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in net asset value from repurchase of common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
(b)
|
Net decrease from costs charged to repurchase of common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)(b)
|
Offering expenses charged to paid-in capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
(b)
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fund share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
(0.63
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Attributable to Common Shareholders, End of Period
|
|
|
|
|
|
$
|
15.98
|
|
|
|
|
|
|
$
|
20.43
|
|
|
|
|
|
|
$
|
18.75
|
|
|
|
|
|
|
$
|
22.43
|
|
|
|
|
|
|
$
|
19.83
|
|
|
|
|
|
|
$
|
19.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV total return
|
|
|
|
|
|
|
(18.82
|
)%
|
|
|
|
|
|
|
15.83
|
%
|
|
|
|
|
|
|
(8.86
|
)%
|
|
|
|
|
|
|
19.59
|
%
|
|
|
|
|
|
|
7.53
|
%
|
|
|
|
|
|
|
(5.52
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of period
|
|
|
|
|
|
$
|
15.83
|
|
|
|
|
|
|
$
|
18.88
|
|
|
|
|
|
|
$
|
16.10
|
|
|
|
|
|
|
$
|
21.30
|
|
|
|
|
|
|
$
|
16.80
|
|
|
|
|
|
|
$
|
16.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment total return
|
|
|
|
|
|
|
(13.03
|
)%
|
|
|
|
|
|
|
25.09
|
%
|
|
|
|
|
|
|
(16.74
|
)%
|
|
|
|
|
|
|
34.83
|
%
|
|
|
|
|
|
|
7.81
|
%
|
|
|
|
|
|
|
(8.16
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
13
The Gabelli Global Utility & Income Trust
Financial Highlights (Continued)
Selected data for a common share of beneficial
interest outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
|
Year Ended December 31,
|
|
|
|
(Unaudited)
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
Ratios to Average Net Assets and Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets including liquidation value of preferred shares, end of period (in 000s)
|
|
|
|
|
|
$
|
150,492
|
|
|
|
|
|
|
$
|
174,294
|
|
|
|
|
|
|
$
|
165,875
|
|
|
|
|
|
|
$
|
143,533
|
|
|
|
|
|
|
$
|
132,847
|
|
|
|
|
|
|
$
|
131,749
|
|
Net assets attributable to common shares, end of period (in 000s)
|
|
|
|
|
|
$
|
85,879
|
|
|
|
|
|
|
$
|
109,681
|
|
|
|
|
|
|
$
|
100,655
|
|
|
|
|
|
|
$
|
92,229
|
|
|
|
|
|
|
$
|
81,543
|
|
|
|
|
|
|
$
|
80,445
|
|
Ratio of net investment income to average net assets attributable to common shares before preferred
share distributions
|
|
|
|
|
|
|
2.69
|
%(c)
|
|
|
|
|
|
|
2.90
|
%
|
|
|
|
|
|
|
2.73
|
%
|
|
|
|
|
|
|
2.88
|
%
|
|
|
|
|
|
|
3.83
|
%
|
|
|
|
|
|
|
2.81
|
%
|
Ratio of operating expenses to average net assets attributable to common shares(d)(e)
|
|
|
|
|
|
|
1.46
|
%(c)(f)
|
|
|
|
|
|
|
1.33
|
%(f)
|
|
|
|
|
|
|
1.33
|
%(f)
|
|
|
|
|
|
|
1.34
|
%
|
|
|
|
|
|
|
1.39
|
%(g)
|
|
|
|
|
|
|
1.41
|
%
|
Portfolio turnover rate
|
|
|
|
|
|
|
7.9
|
%
|
|
|
|
|
|
|
71.0
|
%
|
|
|
|
|
|
|
12.8
|
%
|
|
|
|
|
|
|
9.2
|
%
|
|
|
|
|
|
|
21.8
|
%
|
|
|
|
|
|
|
14.2
|
%
|
Cumulative Preferred Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000s)
|
|
|
|
|
|
$
|
1,711
|
|
|
|
|
|
|
$
|
1,711
|
|
|
|
|
|
|
$
|
2,319
|
|
|
|
|
|
|
$
|
51,304
|
|
|
|
|
|
|
$
|
51,304
|
|
|
|
|
|
|
$
|
51,304
|
|
Total shares outstanding (in 000s)
|
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
46
|
|
|
|
|
|
|
|
1,026
|
|
|
|
|
|
|
|
1,026
|
|
|
|
|
|
|
|
1,026
|
|
Liquidation preference per share
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
$
|
50.00
|
|
Average market value(h)
|
|
|
|
|
|
$
|
45.92
|
|
|
|
|
|
|
$
|
46.84
|
|
|
|
|
|
|
$
|
49.10
|
|
|
|
|
|
|
$
|
50.90
|
|
|
|
|
|
|
$
|
51.17
|
|
|
|
|
|
|
$
|
50.49
|
|
Asset coverage per share(i)
|
|
|
|
|
|
$
|
116.46
|
|
|
|
|
|
|
$
|
134.88
|
|
|
|
|
|
|
$
|
127.17
|
|
|
|
|
|
|
$
|
139.88
|
|
|
|
|
|
|
$
|
129.47
|
|
|
|
|
|
|
$
|
128.40
|
|
Series B Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000s)
|
|
|
|
|
|
$
|
62,901
|
|
|
|
|
|
|
$
|
62,901
|
|
|
|
|
|
|
$
|
62,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares outstanding (in 000s)
|
|
|
|
|
|
|
1,258
|
|
|
|
|
|
|
|
1,258
|
|
|
|
|
|
|
|
1,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation preference per share
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
$
|
50.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average market value(h)
|
|
|
|
|
|
$
|
51.37
|
|
|
|
|
|
|
$
|
52.15
|
|
|
|
|
|
|
$
|
51.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per share(i)
|
|
|
|
|
|
$
|
116.46
|
|
|
|
|
|
|
$
|
134.88
|
|
|
|
|
|
|
$
|
127.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage(j)
|
|
|
|
|
|
|
233
|
%
|
|
|
|
|
|
|
270
|
%
|
|
|
|
|
|
|
254
|
%
|
|
|
|
|
|
|
280
|
%
|
|
|
|
|
|
|
259
|
%
|
|
|
|
|
|
|
257
|
%
|
|
Based on net asset value per share, adjusted for reinvestment of distributions at the net asset value per share
on the ex-dividend dates and adjustments for the rights offering. Total return for a period of less than one year is not annualized.
|
|
Based on market value per share at initial public offering of $20.00 per share, adjusted for reinvestments of
distributions at prices obtained under the Funds dividend reinvestment plan and adjustments for the rights offering. Total return for a period of less than one year is not annualized.
|
*
|
Based on year to date book income. Amounts are subject to change and recharacterization at year end.
|
(a)
|
Calculated based on average common shares outstanding on the record dates throughout the years.
|
(b)
|
Amount represents less than $0.005 per share.
|
(d)
|
The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all
periods presented, there was no impact on the expense ratios.
|
(e)
|
Ratio of operating expenses to average net assets including liquidation value of preferred shares for the six
months ended June 30, 2020, and the years ended December 31, 2019, 2018, 2017, 2016, and 2015, would have been 0.86%, 0.83%, 1.00%, 0.85%, 0.86%, and 0.89%, respectively.
|
(f)
|
The Fund incurred interest expense during the six months ended June 30, 2020 and years ended
December 31, 2019 and 2018. If expense had not been incurred, the expense ratios would have been 1.45%, 1.32% and 1.31% attributable to common shares and 0.85%, 0.82% and 0.99% including liquidation of preferred shares, respectively. For the
years ended December 31, 2017, 2016, and 2015, there was no impact on the expense ratios.
|
(g)
|
During the year ended December 31, 2016, the fund received a reimbursement of custody expenses paid in
prior years. Had such reimbursement been included in 2016, the expense ratios would have been 1.18% attributable to common shares and 0.73% including liquidation value of preferred shares.
|
(h)
|
Based on weekly prices.
|
(i)
|
Asset coverage per share is calculated by combining all series of preferred shares.
|
(j)
|
Asset coverage is calculated by combining all series of preferred shares.
|
See accompanying notes to
financial statements.
14
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited)
1. Organization. The Gabelli
Global Utility & Income Trust (the Fund) is a non-diversified closed-end management investment company organized as a Delaware statutory trust on March 8,
2004 and registered under the Investment Company Act of 1940, as amended (the 1940 Act). Investment operations commenced on May 28, 2004.
The Funds investment objective is to seek a consistent level of after-tax total return over the long
term with an emphasis currently on qualified dividends. The Fund will attempt to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in equity securities (including preferred securities) of
domestic and foreign companies involved to a substantial extent in providing products, services, or equipment for the generation or distribution of electricity, gas, or water and infrastructure operations, and in equity securities (including
preferred securities) of companies in other industries, in each case in such securities that are expected to pay periodic dividends.
2.
Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management
estimates and assumptions in the preparation of its financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial
statements.
Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded
in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a markets official closing price
as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the
security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the Board) so determines, by such other method as
the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by
Gabelli Funds, LLC (the Adviser).
Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing
values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day
the securities are being valued. Debt obligations for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the securities are valued using the
closing bid price, unless the Board determines such amount does not reflect the securities fair value, in which case these securities will be fair valued as determined by the Board. Certain securities are valued principally using dealer
quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. OTC futures and options on futures for which market quotations are readily available will be
valued by quotations received from a pricing service or, if no quotations are available from a pricing service, by quotations obtained from one or more dealers in the instrument in question by the Adviser.
Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and
15
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
changes in valuation of similar securities, including a comparison of foreign securities with
the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.
The inputs and valuation techniques used to measure fair value of the Funds investments are summarized into three levels as described in the
hierarchy below:
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Level 1 quoted prices in active markets for identical securities;
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Level 2 other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.); and
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●
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Level 3 significant unobservable inputs (including the Boards determinations as to the fair
value of investments).
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A financial instruments level within the fair value hierarchy is based on the lowest level of
any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The summary of the Funds investments in securities and other financial instruments by inputs used to value the Funds investments as of June 30, 2020 is as follows:
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Valuation Inputs
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Level 1
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Level 2 Other Significant
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Level 3 Significant
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Total Market Value
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Quoted Prices
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Observable Inputs
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Unobservable Inputs(a)
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at 06/30/2020
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INVESTMENTS IN SECURITIES:
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ASSETS (Market Value):
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Common Stocks:
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ENERGY AND UTILITIES
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Electric Transmission and Distribution
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$
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3,683,657
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$ 30,500
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$
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3,714,157
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Other Industries (b)
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50,589,316
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50,589,316
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COMMUNICATIONS
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Cable and Satellite
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6,690,804
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21,542
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6,712,346
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Other Industries (b)
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12,528,017
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12,528,017
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Independent Power Producers and Energy Traders
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97,680
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97,680
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Diversified Industrial
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38,826
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38,826
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Environmental Services
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27,900
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27,900
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OTHER
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Other Industries (b)
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35,677,722
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35,677,722
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Total Common Stocks
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109,333,922
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52,042
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109,385,964
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Closed End Funds
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215,000
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Rights (b)
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168
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$22,989
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23,157
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Warrants (b)
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485
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44,460
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44,945
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U.S. Government Obligations
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40,672,279
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40,672,279
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TOTAL INVESTMENTS IN SECURITIES ASSETS
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$
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109,334,575
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$40,983,781
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$22,989
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$
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150,341,345
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(a)
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Level 3 securities are valued by the last available closing price and merger/acquisition price analysis.
The inputs for these securities are not readily available and are derived based on the judgment of the Adviser according to procedures approved by the Board of Trustees.
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(b)
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Please refer to the Schedule of Investments (SOI) for the industry classifications of these portfolio holdings.
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During the six months ended June 30, 2020, the Fund did not have transfers into or out of Level 3.
16
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
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 are 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 or preferred equities, warrants, options, rights, or 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. A significant change in the unobservable inputs could result in a lower or higher value in
Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.
The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting
the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.
Investments in Other
Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the
1940 Act) (the Acquired Funds) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Funds expenses. For the six months
ended June 30, 2020, the Funds pro rata portion of the periodic expenses charged by the Acquired Funds was less than 1 basis point.
Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in derivative
financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with
respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution,
liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the 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, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The
creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent
the use of these
17
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
strategies. The consequences of these risks, transaction costs, and losses may have a negative
impact on the Funds ability to pay distributions.
Collateral requirements differ by type of derivative. Collateral requirements are set
by the broker or exchange clearing house for exchange traded derivatives, while collateral terms are contract specific for derivatives traded over-the-counter.
Securities pledged to cover obligations of the Fund under derivative contracts are noted in the Schedule of Investments. Cash collateral, if any, pledged for the same purpose will be reported separately in the Statement of Assets and Liabilities.
The Funds policy with respect to offsetting is that, absent an event of default by the counterparty or a termination of the agreement,
the master agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability
of the right to offset may vary by jurisdiction.
The Funds derivative contracts held at June 30, 2020, 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. For the six months ended June 30, 2020, the Fund held no investments in equity contract for difference swap agreements.
Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of
hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on foreign currency translations. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Funds portfolio securities,
but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency,
18
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
they also limit any potential gain that might result should the value of the currency increase.
There were no forward foreign exchange contracts outstanding at June 30, 2020.
Limitations on the Purchase and Sale of Futures
Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in commodity interest transactions (generally, transactions in futures, certain options, certain currency transactions, and
certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (CFTC). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity
Exchange Act (CEA), the Adviser has filed a notice of exemption from registration as a commodity pool operator with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool
operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund which 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.
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.
19
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it
invests.
Restricted Securities. The Fund is not subject to an independent limitation on the amount it may invest in securities
for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage
charges or dealer discounts and other selling expenses than the sale of securities eligible for trading on national securities exchanges or in the over-the-counter
markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated
as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and, accordingly, the Board will monitor their liquidity. For the
restricted securities held as of June 30, 2020, please refer to the Schedule of Investments.
Securities Transactions and
Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of
discount) is recorded on an 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.
Distributions to Shareholders. Distributions to shareholders are recorded on the ex-dividend
date. The characterization of distributions to shareholders is 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, and timing differences. 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. These reclassifications have no impact on the NAV of the Fund.
Under the funds current common
share distribution policy, the Fund declares and pays monthly distributions from net investment income, capital gains, and paid-in capital. The actual source of the distribution is determined after the end of
the calendar year. Pursuant to this policy, distributions during the year may be made in excess of required distributions. To the extent such distributions are made from current earnings and profits, they are considered ordinary income or long term
capital gains. Distributions sourced from paid-in capital should not be considered as dividend yield or the total return from an investment in the Fund. The Board will continue to monitor the Funds
distribution level, taking into consideration the Funds NAV and the financial market environment. The Funds distribution policy is subject to modification by the Board at any time.
Distributions to shareholders of the Funds 3.80% Series A Cumulative Preferred Shares (Series A Preferred) and Series B Cumulative Preferred
Shares (Series B Preferred) are recorded on a daily basis and are determined as described in Note 5.
20
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
The tax character of distributions paid during the year ended December 31, 2019 was as follows:
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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 gains)
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$
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1,952,259
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$
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2,050,282
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Net long term capital gains
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2,280,716
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2,395,232
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Return of capital
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2,210,216
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Total distributions paid
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$
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6,443,191
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$
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4,445,514
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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.
The following
summarizes the tax cost of investments and the related net unrealized appreciation at June 30, 2020:
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Cost
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Gross
Unrealized
Appreciation
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Gross
Unrealized
Depreciation
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Net Unrealized
Appreciation
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Investments and derivatives instruments
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$
|
139,301,190
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$23,193,297
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$
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(12,153,142
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$11,040,155
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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. During the six months ended June 30, 2020, the Fund
did not incur any income tax, interest, or penalties. As of June 30, 2020, the Adviser has reviewed all open tax years and concluded that there was no impact to the Funds net assets or results of operations. The Funds federal and
state tax returns for the prior three years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Funds tax positions to determine if adjustments to this conclusion are necessary.
3. Investment Advisory Agreement and Other Transactions. 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, currently equal on an annual basis to 0.50% of the value of the Funds average weekly total assets including the liquidation
value of preferred shares. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Funds portfolio and oversees the administration of all aspects of the Funds business and affairs.
During the six months ended June 30, 2020, the Fund paid $6,517 in brokerage commissions on security trades to G.research, LLC, an affiliate
of the Adviser.
During the six months ended June 30, 2020, the Fund received credits from a designated broker who agreed to pay certain
Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $1,113.
The cost
of calculating the Funds NAV per share is a Fund expense pursuant to the Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of
calculating
21
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
the Funds NAV. The Fund reimburses the Adviser for this service. During the six months
ended June 30, 2020, the Fund accrued $22,500 in accounting fees in the Statement of Operations.
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). During the six months ended
June 30, 2020, the Fund accrued $70,917 in payroll expenses in the Statement of Operations.
The Fund pays each Trustee who is not
considered an affiliated person an annual retainer of $3,000 plus $1,000 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 $500
per meeting attended. The Audit Committee Chairman receives an annual fee of $3,000, the Nominating Committee Chairman receives an annual fee of $2,000, and the Lead Trustee receives an annual fee of $1,000. 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 six months ended June 30, 2020, other than
short term securities and U.S. Government obligations, aggregated $9,849,704 and $21,337,382, respectively.
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 on the open market when the shares are trading at a discount of 10% or more (or such other
percentage as the Board may determine from time to time) from the NAV of the shares. During the six months ended June 30, 2020 and the year ended December 31, 2019, the Fund did not repurchase and retire any common shares in the open
market.
The Funds Declaration of Trust, as amended, authorizes the issuance of an unlimited number of shares of $0.001 par value
Preferred Shares. Preferred Shares are senior to the common shares and result 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 and
Series B Preferred are cumulative and the liquidation value is $50 per share. The Fund is required by the 1940 Act and by the Funds Statement of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. 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 and Series B Preferred Shares at the redemption price of $50 per share plus an amount equal to the accumulated
and unpaid dividends whether or not declared on such shares in order to meet these 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 and variable rates, which could have either a beneficial or detrimental impact on net
investment income and gains available to common shareholders.
The Fund has an effective shelf registration authorizing the offering of an
additional $150 million of common or preferred shares. As of June 30, 2020, after considering the common and preferred shares rights offerings, the Fund has approximately $65 million available for issuance under the current shelf
registration.
22
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
The Series A Preferred has an annual dividend rate of 3.80%. The Fund may redeem at any time all
or any part of the Series A Preferred at the liquidation value plus accumulated and unpaid dividends. During the six months ended June 30, 2020, the Fund did not repurchase and retire any shares of the Series A Preferred in the open market.
The Series B Preferred paid distributions quarterly at an annualized dividend rate of 7.00% of the $50 per share liquidation preference for
the quarterly dividend periods ending on or prior to December 26, 2019 (Year 1). During the last dividend period of Year 1, the Board determined that the dividend rate for the next eight quarterly dividend periods (Year 2 and Year 3) will be
4.00%. During the last dividend period occurring in Year 3, the Board will determine and publicly announce at least 30 days prior to the end of such dividend period a fixed annual dividend rate that will apply for all remaining dividend periods. The
reset dividend rate will be determined by the Board or a committee thereof in its sole discretion, and such rate will be at least 200 basis points over the yield of the ten year U.S. Treasury Note at the date of determination, but in no case will
such rate be less than an annualized rate of 4.00% nor greater than an annualized rate of 7.00%. The Series B may be put back to the Fund during the 30 day period prior to each of December 26, 2021 and December 26, 2023 at the liquidation
preference of $50 per share, plus any accumulated and unpaid dividends, and redeemed by the Fund, at its option, at the liquidation preference of $50 per share, plus any accumulated and unpaid dividends, at any time commencing on December 26,
2023.
The following table summarizes Cumulative Preferred Share information:
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares
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|
|
|
|
|
|
|
Dividend
|
|
Accrued
|
|
|
|
|
|
|
|
|
|
Outstanding at
|
|
|
|
|
2020 Dividend
|
|
|
Rate at
|
|
Dividends at
|
|
Series
|
|
Issue Date
|
|
|
Authorized
|
|
|
06/30/20
|
|
Net Proceeds
|
|
|
Rate Range
|
|
|
06/30/20
|
|
06/30/20
|
|
A 3.800%
|
|
|
April 11, 2013
|
|
|
|
1,200,000
|
|
|
34,229
|
|
$
|
70,286,465
|
|
|
|
Fixed Rate
|
|
|
3.800%
|
|
|
$ 904
|
|
B
|
|
|
December 19, 2018
|
|
|
|
1,370,433
|
|
|
1,258,029
|
|
|
84,586,957
|
|
|
|
4.000%/7.000
|
%
|
|
4.000%
|
|
|
34,945
|
|
The holders of Preferred Shares generally are entitled to one vote per share held on each matter submitted to a
vote of shareholders of the Fund and will vote together with holders of common shares as a single class. The holders of Preferred Shares voting together as a single class also have the right currently to elect two Trustees and under certain
circumstances are entitled to elect a majority of the Board of Trustees. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the Preferred Shares, voting as a single class, will be
required to approve any plan of reorganization adversely affecting the Preferred Shares, and the approval of two-thirds of each class, voting separately, of the Funds outstanding voting stock must
approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding
Preferred Shares and a majority (as defined in the 1940 Act) of the Funds outstanding voting securities are required to approve certain other actions, including changes in the Funds investment objectives or fundamental investment
policies.
6. Industry Concentration. Because the Fund primarily invests in common stocks and other securities of foreign and domestic
companies in the utility industry, its portfolio may be subject to greater risk and market fluctuations than a portfolio of securities representing a broad range of investments.
7. 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.
23
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
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.