|
|
|
|
|
|
|
|
|
Market
|
|
|
Shares
|
|
|
|
|
Cost
|
|
|
Value
|
|
|
|
|
|
COMMON STOCKS (Continued)
|
|
|
|
|
|
|
|
|
|
|
COMMUNICATIONS (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Communications (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies (Continued)
|
|
|
|
|
|
|
|
|
|
|
8,000
|
|
|
United States Cellular Corp.†
|
|
$
|
276,572
|
|
|
$
|
290,480
|
|
|
|
|
|
|
|
|
|
3,330,308
|
|
|
|
3,045,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMUNICATIONS
|
|
|
25,525,115
|
|
|
|
30,265,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INDEPENDENT POWER PRODUCERS AND ENERGY TRADERS — 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent Power Producers and Energy Traders — 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies
|
|
|
|
|
|
|
|
|
|
|
3,000
|
|
|
NRG Energy Inc.
|
|
|
66,531
|
|
|
|
120,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENVIRONMENTAL SERVICES — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies
|
|
|
|
|
|
|
|
|
|
|
1,500
|
|
|
Evoqua Water Technologies Corp.†
|
|
|
17,487
|
|
|
|
50,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED INDUSTRIAL — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies
|
|
|
|
|
|
|
|
|
|
|
100
|
|
|
Roper Technologies Inc.
|
|
|
25,045
|
|
|
|
47,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
|
|
|
108,601,876
|
|
|
|
151,865,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOSED-END FUNDS— 0.1%
|
|
|
|
|
|
|
|
|
|
|
10,000
|
|
|
Altaba Inc., Escrow†
|
|
|
103,000
|
|
|
|
145,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RIGHTS— 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies
|
|
|
|
|
|
|
|
|
|
|
17,029
|
|
|
Ipsen SA/Clementia,CVR†(a)
|
|
|
22,989
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WARRANTS — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY AND UTILITIES — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Resources — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Companies
|
|
|
|
|
|
|
|
|
|
|
1,500
|
|
|
Occidental Petroleum Corp., expire 08/03/27†
|
|
|
7,425
|
|
|
|
20,865
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
Shares
|
|
|
|
|
Cost
|
|
|
Value
|
|
|
|
|
|
|
Services — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies
|
|
|
|
|
|
|
|
|
|
|
2,850
|
|
|
Weatherford International
plc, expire 12/13/23†
|
|
$
|
0
|
|
|
$
|
1,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ENERGY AND
UTILITIES
|
|
|
7,425
|
|
|
|
22,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL WARRANTS.
|
|
|
7,425
|
|
|
|
22,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONVERTIBLE CORPORATE BONDS — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,000
|
|
|
Credit Suisse Group
Guernsey VII Ltd., 3.000%, 11/12/21(b)
|
|
|
27,507
|
|
|
|
30,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GOVERNMENT OBLIGATIONS — 14.2%
|
|
|
|
|
|
|
|
|
|
|
25,252,000
|
|
|
U.S. Treasury Bills,
0.002% to 0.055%††, 07/08/21 to 12/09/21
|
|
|
25,249,020
|
|
|
|
25,248,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INVESTMENTS — 100.0%
|
|
$
|
134,011,817
|
|
|
|
177,312,289
|
|
|
Other Assets and Liabilities (Net)
|
|
|
|
|
|
|
217,666
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED SHARES
|
|
|
|
|
|
|
|
|
|
(1,290,558 preferred shares outstanding)
|
|
|
|
|
|
|
(64,527,900)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS — COMMON SHARES
|
|
|
|
|
|
|
|
|
|
(5,374,372 common shares outstanding)
|
|
|
|
|
|
$
|
113,002,055
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
($113,002,055 ÷ 5,374,372 shares
outstanding)
|
|
|
|
|
|
$
|
21.03
|
|
|
|
(a)
|
Security is valued using significant unobservable inputs
and is classified as Level 3 in the fair value hierarchy.
|
|
|
(b)
|
Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers.
|
|
|
†
|
Non-income producing security.
|
|
|
††
|
Represents annualized yields at dates of purchase.
|
|
|
ADR
|
American Depositary Receipt
|
|
|
CVR
|
Contingent Value Right
|
|
|
GDR
|
Global Depositary Receipt
|
|
|
SDR
|
Swedish Depositary Receipt
|
See accompanying notes to financial statements.
The Gabelli
Global Utility & Income Trust
Schedule of
Investments (Continued) — June 30, 2021 (Unaudited)
|
|
|
% of Total
|
|
Market
|
|
|
Geographic Diversification
|
|
Investments
|
|
Value
|
|
|
United States
|
|
|
53.0
|
%
|
|
$
|
94,007,949
|
|
|
Europe
|
|
|
34.7
|
|
|
|
61,571,947
|
|
|
Canada
|
|
|
5.8
|
|
|
|
10,317,513
|
|
|
Japan
|
|
|
2.7
|
|
|
|
4,698,538
|
|
|
Asia/Pacific
|
|
|
2.1
|
|
|
|
3,675,309
|
|
|
Latin America
|
|
|
1.4
|
|
|
|
2,432,769
|
|
|
South Africa
|
|
|
0.2
|
|
|
|
419,914
|
|
|
Africa/Middle East
|
|
|
0.1
|
|
|
|
188,350
|
|
|
Total Investments
|
|
|
100.0
|
%
|
|
$
|
177,312,289
|
|
See accompanying notes to financial statements.
The
Gabelli Global Utility & Income Trust
Statement of
Assets and Liabilities
June 30, 2021
(Unaudited)
|
Assets:
|
|
|
|
|
Investments, at value (cost $134,011,817)
|
|
$
|
177,312,289
|
|
|
Foreign currency, at value (cost $18,969)
|
|
|
18,899
|
|
|
Cash
|
|
|
12,617
|
|
|
Receivable for investments sold
|
|
|
184,264
|
|
|
Dividends and interest receivable
|
|
|
482,704
|
|
|
Deferred offering expense
|
|
|
62,368
|
|
|
Prepaid expenses
|
|
|
2,543
|
|
|
Total Assets
|
|
|
178,075,684
|
|
|
Liabilities:
|
|
|
|
|
|
Distributions payable
|
|
|
35,804
|
|
|
Payable for investments purchased
|
|
|
253,975
|
|
|
Payable for investment advisory fees
|
|
|
74,017
|
|
|
Payable for payroll expenses
|
|
|
17,503
|
|
|
Payable for accounting fees
|
|
|
3,750
|
|
|
Payable for shareholder services fees
|
|
|
71,129
|
|
|
Payable for shareholder communications
|
|
|
47,534
|
|
|
Payable for legal and audit fees
|
|
|
36,634
|
|
|
Other accrued expenses
|
|
|
5,383
|
|
|
Total Liabilities
|
|
|
545,729
|
|
|
Preferred Shares:
|
|
|
|
|
|
Series A Cumulative Preferred Shares (3.800%, $50 liquidation value, $0.001 par value, 1,200,000 shares authorized with 32,529 shares issued and outstanding)
|
|
|
1,626,450
|
|
|
Series B Cumulative Preferred Shares (4.000%, $50 liquidation value, 1,370,433 shares authorized with 1,258,029 shares issued and outstanding)
|
|
|
62,901,450
|
|
|
Total Preferred Shares
|
|
|
64,527,900
|
|
|
Net Assets Attributable to Common Shareholders
|
|
$
|
113,002,055
|
|
|
Net Assets Attributable to Common Shareholders Consist of:
|
|
|
|
|
|
Paid-in capital
|
|
$
|
72,630,136
|
|
|
Total distributable earnings
|
|
|
40,371,919
|
|
|
Net Assets
|
|
$
|
113,002,055
|
|
|
Net Asset Value per Common Share:
|
|
|
|
|
|
($113,002,055 ÷ 5,374,372 shares outstanding at $0.001 par value; unlimited number of shares authorized)
|
|
$
|
21.03
|
|
Statement of
Operations
For the Six
Months Ended June 30, 2021 (Unaudited)
|
Investment Income:
|
|
|
|
|
|
Dividends (net of foreign withholding taxes of $167,238)
|
|
$
|
2,224,016
|
|
|
Non-cash dividends
|
|
|
200,689
|
|
|
Interest
|
|
|
10,804
|
|
|
Total Investment Income
|
|
|
2,435,509
|
|
|
Expenses:
|
|
|
|
|
|
Investment advisory fees
|
|
|
436,919
|
|
|
Payroll expenses
|
|
|
74,710
|
|
|
Shelf offering expense
|
|
|
50,518
|
|
|
Shareholder communications expenses
|
|
|
50,119
|
|
|
Legal and audit fees
|
|
|
35,877
|
|
|
Trustees’ fees
|
|
|
29,906
|
|
|
Shareholder services fees
|
|
|
23,914
|
|
|
Custodian fees
|
|
|
23,591
|
|
|
Accounting fees
|
|
|
22,500
|
|
|
Interest expense
|
|
|
51
|
|
|
Miscellaneous expenses
|
|
|
30,073
|
|
|
Total Expenses
|
|
|
778,178
|
|
|
Less:
|
|
|
|
|
|
Expenses paid indirectly by broker (See Note 3)
|
|
|
(1,147
|
)
|
|
Net Expenses
|
|
|
777,031
|
|
|
Net Investment Income
|
|
|
1,658,478
|
|
|
Net Realized and Unrealized Gain/(Loss) on
|
|
|
|
|
|
Investments and Foreign Currency:
|
|
|
|
|
|
Net realized gain on investments
|
|
|
1,939,813
|
|
|
Net realized gain on foreign currency transactions
|
|
|
4,061
|
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
1,943,874
|
|
|
Net change in unrealized appreciation/depreciation:
|
|
|
|
|
|
on investments
|
|
|
9,265,044
|
|
|
on foreign currency translations
|
|
|
(7,111
|
)
|
|
Net change in unrealized
appreciation/depreciation on investments and foreign currency translations
|
|
|
9,257,933
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency
|
|
|
11,201,807
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
|
12,860,285
|
|
|
Total Distributions to Preferred Shareholders
|
|
|
(1,289,077
|
)
|
|
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations
|
|
$
|
11,571,208
|
|
See accompanying notes to financial statements.
The Gabelli
Global Utility & Income Trust
Statement of
Changes in Net Assets Attributable to Common Stockholders
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30, 2021
|
|
|
Year Ended
|
|
|
|
|
(Unaudited)
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
1,658,478
|
|
|
$
|
2,132,361
|
|
|
Net realized gain/(loss) on investments and foreign currency transactions
|
|
|
1,943,874
|
|
|
|
(2,658,590
|
)
|
|
Net change in unrealized appreciation/depreciation on investments and foreign currency
translations
|
|
|
9,257,933
|
|
|
|
4,439,859
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
|
12,860,285
|
|
|
|
3,913,630
|
|
|
Distributions to Preferred Shareholders:
|
|
|
|
|
|
|
|
|
|
Accumulated earnings
|
|
|
(1,289,077
|
)*
|
|
|
(2,259,204
|
)
|
|
Return of capital
|
|
|
—
|
|
|
|
(321,889
|
)
|
|
Total Distributions to Preferred Shareholders
|
|
|
(1,289,077
|
)
|
|
|
(2,581,093
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations
|
|
|
11,571,208
|
|
|
|
1,332,537
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
Accumulated earnings
|
|
|
(2,095,752
|
)*
|
|
|
—
|
|
|
Return of capital
|
|
|
(1,128,481
|
)*
|
|
|
(6,446,351
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Distributions to Common Shareholders
|
|
|
(3,224,233
|
)
|
|
|
(6,446,351
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from common shares issued upon reinvestment of distributions
|
|
|
17,157
|
|
|
|
64,355
|
|
|
Net increase in net assets from repurchase of preferred shares
|
|
|
5,898
|
|
|
|
—
|
|
|
Net Increase in Net Assets from Fund Share Transactions
|
|
|
23,055
|
|
|
|
64,355
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders
|
|
|
8,370,030
|
|
|
|
(5,049,459
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Attributable to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
104,632,025
|
|
|
|
109,681,484
|
|
|
End of period
|
|
$
|
113,002,055
|
|
|
$
|
104,632,025
|
|
|
|
*
|
Based on year to date book
income. Amounts are subject to change and recharacterization at year end.
|
See accompanying notes to financial statements.
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, 2021
|
|
|
Year
Ended December 31,
|
|
|
|
|
(Unaudited)
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Operating
Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of year
|
|
$
|
19.47
|
|
|
$
|
20.43
|
|
|
$
|
18.75
|
|
|
$
|
22.43
|
|
|
$
|
19.83
|
|
|
$
|
19.57
|
|
|
Net
investment income
|
|
|
0.31
|
(a)
|
|
|
0.40
|
|
|
|
0.57
|
|
|
|
0.58
|
|
|
|
0.62
|
|
|
|
0.78
|
|
|
Net
realized and unrealized gain/(loss) on investments and foreign currency transactions
|
|
|
2.09
|
|
|
|
0.32
|
|
|
|
3.13
|
|
|
|
(2.15)
|
|
|
|
3.65
|
|
|
|
1.11
|
|
|
Total
from investment operations
|
|
|
2.40
|
|
|
|
0.72
|
|
|
|
3.70
|
|
|
|
(1.57
|
)
|
|
|
4.27
|
|
|
|
1.89
|
|
|
Distributions
to Preferred Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
(0.11
|
)*
|
|
|
(0.42
|
)
|
|
|
(0.29
|
)
|
|
|
(0.12
|
)
|
|
|
(0.18
|
)
|
|
|
(0.24
|
)
|
|
Net
investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized gain
|
|
|
(0.13
|
)*
|
|
|
—
|
|
|
|
(0.54
|
)
|
|
|
(0.16
|
)
|
|
|
(0.29
|
)
|
|
|
(0.19
|
)
|
|
Return
of capital
|
|
|
—
|
|
|
|
(0.06
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total
distributions to preferred shareholders
|
|
|
(0.24
|
)
|
|
|
(0.48
|
)
|
|
|
(0.83
|
)
|
|
|
(0.28
|
)
|
|
|
(0.47
|
)
|
|
|
(0.43
|
)
|
|
Net
Increase/(Decrease) in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resulting
from Operations
|
|
|
2.16
|
|
|
|
0.24
|
|
|
|
2.87
|
|
|
|
(1.85
|
)
|
|
|
3.80
|
|
|
|
1.46
|
|
|
Distributions
to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
|
|
|
(0.17
|
)*
|
|
|
—
|
|
|
|
(0.27
|
)
|
|
|
(0.49
|
)
|
|
|
(0.44
|
)
|
|
|
(0.59
|
)
|
|
Net
realized gain
|
|
|
(0.22
|
)*
|
|
|
—
|
|
|
|
(0.52
|
)
|
|
|
(0.64
|
)
|
|
|
(0.76
|
)
|
|
|
(0.49
|
)
|
|
Return
of capital
|
|
|
(0.21
|
)*
|
|
|
(1.20
|
)
|
|
|
(0.41
|
)
|
|
|
(0.07
|
)
|
|
|
—
|
|
|
|
(0.12
|
)
|
|
Total
distributions to common shareholders
|
|
|
(0.60
|
)
|
|
|
(1.20
|
)
|
|
|
(1.20
|
)
|
|
|
(1.20
|
)
|
|
|
(1.20
|
)
|
|
|
(1.20
|
)
|
|
Fund
Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
in net asset value from common shares issued upon reinvestment of distributions
|
|
|
0.00
|
(c)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Increase
in net asset value from repurchase of preferred shares
|
|
|
0.00
|
(c)
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.00
|
(c)
|
|
|
—
|
|
|
|
—
|
|
|
Offering
expenses charged to paid-in capital
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
(c)
|
|
|
(0.08
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Decrease
in net asset value from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
shares issued in rights offering
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.55
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Total
Fund share transactions
|
|
|
0.00
|
(c)
|
|
|
—
|
|
|
|
0.01
|
|
|
|
(0.63
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Net
Asset Value Attributable to Common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders,
End of Period
|
|
$
|
21.03
|
|
|
$
|
19.47
|
|
|
$
|
20.43
|
|
|
$
|
18.75
|
|
|
$
|
22.43
|
|
|
$
|
19.83
|
|
|
NAV
total return (d)
|
|
|
11.16
|
%
|
|
|
2.33
|
%
|
|
|
15.83
|
%
|
|
|
(8.86
|
)%
|
|
|
19.59
|
%
|
|
|
7.53
|
%
|
|
Market
value, end of period
|
|
$
|
20.90
|
|
|
$
|
18.42
|
|
|
$
|
18.88
|
|
|
$
|
16.10
|
|
|
$
|
21.30
|
|
|
$
|
16.80
|
|
|
Investment
total return (e)
|
|
|
16.91
|
%
|
|
|
4.86
|
%
|
|
|
25.09
|
%
|
|
|
(16.74
|
)%
|
|
|
34.83
|
%
|
|
|
7.81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets and Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets including liquidation value of preferred shares, end of period (in 000’s)
|
|
$
|
177,530
|
|
|
$
|
169,245
|
|
|
$
|
174,294
|
|
|
$
|
165,875
|
|
|
$
|
143,533
|
|
|
$
|
132,847
|
|
|
Net
assets attributable to common shares, end of period (in 000’s)
|
|
$
|
113,002
|
|
|
$
|
104,632
|
|
|
$
|
109,681
|
|
|
$
|
100,655
|
|
|
$
|
92,229
|
|
|
$
|
81,543
|
|
|
Ratio
of net investment income to average net assets attributable to common shares before preferred share distributions
|
|
|
3.01
|
%(a)(f)
|
|
|
2.29
|
%
|
|
|
2.90
|
%
|
|
|
2.73
|
%
|
|
|
2.88
|
%
|
|
|
3.83
|
%
|
See
accompanying notes to financial statements.
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, 2021
|
|
|
Year Ended December 31,
|
|
|
|
|
(Unaudited)
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Ratio of operating expenses to average net assets attributable to common shares
(g)(h)
|
|
|
1.41
|
%(f)(i)
|
|
|
1.39
|
%(i)
|
|
|
1.33
|
%(i)
|
|
|
1.33
|
%(i)
|
|
|
1.34
|
%
|
|
|
1.39
|
%(j)
|
|
Portfolio turnover rate
|
|
|
6
|
%
|
|
|
27
|
%
|
|
|
71
|
%
|
|
|
13
|
%
|
|
|
9
|
%
|
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Preferred Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period
(in 000’s)
|
|
$
|
1,626
|
|
|
$
|
1,711
|
|
|
$
|
1,711
|
|
|
$
|
2,319
|
|
|
$
|
51,304
|
|
|
$
|
51,304
|
|
|
Total shares outstanding (in 000’s)
|
|
|
33
|
|
|
|
34
|
|
|
|
34
|
|
|
|
46
|
|
|
|
1,026
|
|
|
|
1,026
|
|
|
Liquidation preference per share
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
Average market value (k)
|
|
$
|
45.94
|
|
|
$
|
45.94
|
|
|
$
|
46.84
|
|
|
$
|
49.10
|
|
|
$
|
50.90
|
|
|
$
|
51.17
|
|
|
Asset coverage per share (l)
|
|
$
|
137.56
|
|
|
$
|
130.97
|
|
|
$
|
134.88
|
|
|
$
|
127.17
|
|
|
$
|
139.88
|
|
|
$
|
129.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series B Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period
(in 000’s).
|
|
$
|
62,901
|
|
|
$
|
62,901
|
|
|
$
|
62,901
|
|
|
$
|
62,901
|
|
|
|
—
|
|
|
|
—
|
|
|
Total shares outstanding (in 000’s)
|
|
|
1,258
|
|
|
|
1,258
|
|
|
|
1,258
|
|
|
|
1,258
|
|
|
|
—
|
|
|
|
—
|
|
|
Liquidation preference per share
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
|
—
|
|
|
|
—
|
|
|
Average market value (k)
|
|
$
|
52.07
|
|
|
$
|
51.66
|
|
|
$
|
52.15
|
|
|
$
|
51.32
|
|
|
|
—
|
|
|
|
—
|
|
|
Asset coverage per share (l)
|
|
$
|
137.56
|
|
|
$
|
130.97
|
|
|
$
|
134.88
|
|
|
$
|
127.17
|
|
|
|
—
|
|
|
|
—
|
|
|
Asset Coverage (m)
|
|
|
275
|
%
|
|
|
262
|
%
|
|
|
270
|
%
|
|
|
254
|
%
|
|
|
280
|
%
|
|
|
259
|
%
|
|
|
*
|
Based on year to date book
income. Amounts are subject to change and recharacterization at year end.
|
|
|
(a)
|
Includes income resulting from special dividends. Without
these dividends, the per share income amount would have been 0.27, and the net investment income ratio would have been 2.64%.
|
|
|
(b)
|
Calculated based on average common shares outstanding
on the record dates throughout the periods.
|
|
|
(c)
|
Amount represents less than $0.005 per share.
|
|
|
(d)
|
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.
|
|
|
(e)
|
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 Fund’s dividend reinvestment
plan and adjustments for the rights offering. Total return for a period of less than one year is not annualized.
|
|
|
(g)
|
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.
|
|
|
(h)
|
Ratio of operating expenses to average net assets including
liquidation value of preferred shares for the six months ended June 30, 2021, and the years ended December 31, 2020, 2019, 2018,
2017, and 2016, would have been 0.89%, 0.82%, 0.83%, 1.00%, 0.85%, and 0.86%, respectively.
|
|
|
(i)
|
The Fund incurred interest expense during the six months
ended June 30, 2021 and years ended December 31, 2019 and 2018. If expense had not been incurred, the expense ratios would have
been 1.41%, 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, and 2016, there was no impact on the expense ratios.
|
|
|
(j)
|
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.
|
|
|
(k)
|
Based on weekly prices.
|
|
|
(l)
|
Asset coverage per share is calculated by combining all
series of preferred shares.
|
|
|
(m)
|
Asset
coverage is calculated by combining all series of preferred shares.
|
See
accompanying notes to financial statements.
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
Fund’s 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.
The
global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations,
regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially
impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its
ability to achieve its investment objectives.
Security
Valuation. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available
are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the
securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked
prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day.
If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board
of Trustees (the Board) so determines, by such other method as the Board shall determine in good faith to reflect its fair market
value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest
and most representative market, as determined by Gabelli Funds, LLC (the Adviser).
Portfolio
securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the
relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly
after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt 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
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
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 changes in valuation of similar securities, including a comparison of foreign
securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and
evaluation of any other information that could be indicative of the value of the security.
The
inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as
described in the hierarchy below:
|
|
●
|
Level
1 — quoted prices in active markets for identical securities;
|
|
|
●
|
Level
2 — other significant observable inputs (including quoted prices for similar securities,
interest rates, prepayment speeds, credit risk, etc.); and
|
|
|
●
|
Level
3 — significant unobservable inputs (including the Board’s determinations
as to the fair value of investments).
|
A
financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually
and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities.
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
The summary of
the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2021 is as follows:
|
|
|
Valuation Inputs
|
|
|
|
|
|
|
|
Level 1
|
|
|
Level 2 Other Significant
|
|
|
Level 3 Significant
|
|
|
Total Market Value
|
|
|
|
|
Quoted Prices
|
|
|
Observable Inputs
|
|
|
Unobservable Inputs (a)
|
|
|
at 06/30/21
|
|
|
INVESTMENTS IN SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cable and Satellite
|
|
$
|
10,494,025
|
|
|
$
|
28,365
|
|
|
|
—
|
|
|
$
|
10,522,390
|
|
|
Other Industries (b)
|
|
|
19,742,991
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,742,991
|
|
|
Diversified Industrial (b)
|
|
|
47,020
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47,020
|
|
|
Energy and Utilities (b)
|
|
|
71,044,828
|
|
|
|
—
|
|
|
|
—
|
|
|
|
71,044,828
|
|
|
Environmental Services (b)
|
|
|
50,670
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,670
|
|
|
Independent Power Producers and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Traders (b)
|
|
|
120,900
|
|
|
|
—
|
|
|
|
—
|
|
|
|
120,900
|
|
|
Other (b)
|
|
|
50,336,838
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,336,838
|
|
|
Total Common Stocks
|
|
|
151,837,272
|
|
|
|
28,365
|
|
|
|
—
|
|
|
|
151,865,637
|
|
|
Closed-End Funds
|
|
|
—
|
|
|
|
145,500
|
|
|
|
—
|
|
|
|
145,500
|
|
|
Rights (b)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
0
|
|
|
|
0
|
|
|
Warrants (b)
|
|
|
22,119
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22,119
|
|
|
Convertible Corporate Bonds (b)
|
|
|
—
|
|
|
|
30,427
|
|
|
|
—
|
|
|
|
30,427
|
|
|
U.S. Government Obligations
|
|
|
—
|
|
|
|
25,248,606
|
|
|
|
—
|
|
|
|
25,248,606
|
|
|
TOTAL INVESTMENTS IN
SECURITIES – ASSETS
|
|
$
|
151,859,391
|
|
|
$
|
25,452,898
|
|
|
$
|
0
|
|
|
$
|
177,312,289
|
|
|
|
(a)
|
Level 3 securities are valued at last available closing
price. The inputs for this security are not readily available and are derived based on the judgment of the Adviser according to
procedures approved by the Board of Trustees.
|
|
|
(b)
|
Please refer to the Schedule of Investments for the industry
classifications of these portfolio holdings.
|
During the six
months ended June 30, 2021, the Fund did not have transfers into or out of Level 3.
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.
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
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. When fair valuing a security, factors to consider include 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 Fund’s expenses. For the six months ended June
30, 2021, the Fund’s 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 Adviser’s prediction
of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise
if the counterparty does not perform its duties under a contract, or, in the event of default, the Fund may be delayed in or prevented
from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties
is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction
costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these
risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.
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
Fund’s 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
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
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
Fund’s derivative contracts held at June 30, 2021, if any, are not accounted for as hedging instruments under GAAP and are
disclosed in the Schedule of Investments together with the related counterparty.
Swap
Agreements. The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the
income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different
from those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future
cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest
rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the
shares of a stock. Depending on the general state of short term interest rates and the returns on the Fund’s portfolio securities
at the time an equity contract for difference swap transaction reaches its scheduled termination date, there is a risk that the
Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on
the expiring transaction.
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, 2021, the Fund held no investments
in equity contract for difference swap agreements.
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 Fund’s assets
committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into
such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits
on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market
value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions,
or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market
value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions.
Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options,
and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As
a result, in the future the Fund will be more limited in its ability to use these
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
instruments
than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the
Fund’s performance.
Foreign
Currency Translations. The books and records of the Fund are maintained
in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current
exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or
changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency
translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency
gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions,
and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date
and subsequent sale trade date is included in realized gain/(loss) on investments.
Foreign
Securities. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities
of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial
information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.
Foreign
Taxes. The Fund may be subject to foreign taxes on income, gains
on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries
as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Restricted
Securities. The Fund is not subject to an independent limitation on the amount it may invest in securities for which the
markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual
restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts
and other selling expenses than the sale of securities eligible for trading on national securities exchanges or in the over-the-counter
markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale.
Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid
if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured
as that of publicly traded securities, and, accordingly, the Board will monitor their liquidity. At June 30, 2021 the Fund held
no restricted securities.
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 or amortized to earliest call date, if applicable. 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.
The Gabelli Global Utility & Income Trust
Notes to Financial Statements (Unaudited) (Continued)
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 fund’s 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 Fund’s distribution level, taking into consideration the Fund’s NAV and the financial
market environment. The Fund’s distribution policy is subject to modification by the Board at any time.
Distributions
to shareholders of the Fund’s 3.800% Series A Cumulative Preferred Shares (Series A Preferred) and 4.000% Series B Cumulative
Preferred Shares (Series B Preferred) are recorded on a daily basis and are determined as described in Note 5.
The tax character
of distributions paid during the year ended December 31, 2020 was as follows:
|
|
|
Common
|
|
|
Preferred
|
|
|
Distributions paid from:
|
|
|
|
|
|
|
|
|
|
Ordinary income
|
|
|
—
|
|
|
$
|
2,259,204
|
|
|
Return of capital
|
|
$
|
6,446,351
|
|
|
|
321,889
|
|
|
Total distributions paid
|
|
$
|
6,446,351
|
|
|
$
|
2,581,093
|
|
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 Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
At
December 31, 2020, the Fund had net long term capital loss carryforwards for federal income tax purposes which are available to
reduce future required distributions of net capital gains to shareholders. The Fund is permitted to carry capital losses forward
for an unlimited period. Capital losses that are carried forward will retain their character as either short term or long term
capital losses.
|
Short term capital loss carryforward with no expiration
|
|
$
|
756,281
|
|
|
Long term capital loss carryforward with no expiration
|
|
|
1,394,061
|
|
|
Total Capital Loss Carryforwards
|
|
$
|
2,150,342
|
|
The
following summarizes the tax cost of investments and the related net unrealized appreciation at June
30, 2021:
|
|
|
|
Gross
|
|
Gross
|
|
|
|
|
|
|
Unrealized
|
|
Unrealized
|
|
Net Unrealized
|
|
|
Cost
|
|
Appreciation
|
|
Depreciation
|
|
Appreciation
|
|
Investments
|
$134,874,996
|
|
$46,668,992
|
|
$(4,231,699)
|
|
$42,437,293
|
The
Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s 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 six months ended June 30, 2021, the Fund
did not incur any income tax, interest, or penalties. As of June 30, 2021, the Adviser has reviewed all open tax years and concluded
that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns
for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s
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 Fund’s 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 Fund’s
portfolio and oversees the administration of all aspects of the Fund’s business and affairs.
During
the six months ended June 30, 2021, the Fund paid $549 in brokerage commissions on security trades to G.research, LLC, an affiliate
of the Adviser.
During
the six months ended June 30, 2021, 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 $1,147.
The
cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the
Adviser. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the
Fund’s NAV. The Fund reimburses the Adviser for this service.
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
During
the six months ended June 30, 2021, 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 six
months ended June 30, 2021, the Fund accrued $74,710 in payroll expenses in the Statement of Operations.
The
Fund pays retainer and per meeting fees to Trustees not affiliated with the Adviser, plus specified amounts to the Lead Trustee
and Audit Committee Chairman. Trustees are also reimbursed for out of pocket expenses incurred in attending meetings. 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, 2021, other than short term securities
and U.S. Government obligations, aggregated $10,271,240 and $8,852,508, 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, 2021 and the year ended December 31, 2020, the Fund did not repurchase and retire any common shares in the open market.
For
the six months ended June 30, 2021 and the year ended December 31, 2020, transactions in common stock were as follows:
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021
|
|
|
Year Ended
|
|
|
|
|
(Unaudited)
|
|
|
December 31, 2020
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Net increase in net assets from common shares issued upon reinvestment of distributions
|
|
|
794
|
|
|
$
|
17,157
|
|
|
|
4,252
|
|
|
$
|
64,355
|
|
The
Fund’s 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 Fund’s 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 Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune
times. The income received
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
on
the Fund’s 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.
On
May 24, 2021, the Fund filed a shelf registration in the amount of $165 million. As of June 30, 2021, the shelf registration had
not been declared effective by the SEC.
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, 2021, the Fund repurchased
and retired 1,700 of the Series A Preferred Shares in the open market at an investment of $79,103 and an average discount of approximately
7.49% from its liquidation preference.
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 Stock information:
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Dividend
|
Accrued
|
|
|
|
|
Outstanding at
|
|
2021 Dividend
|
Rate at
|
Dividends at
|
|
Series
|
Issue Date
|
Authorized
|
6/30/2021
|
Net Proceeds
|
Rate Range
|
6/30/2021
|
6/30/2021
|
|
A 3.800%
|
April
11, 2013
|
1,200,000
|
32,529
|
$70,286,465
|
Fixed Rate
|
3.800%
|
$859
|
|
B 4.000%
|
December
19, 2018
|
1,370,433
|
1,258,029
|
84,586,957
|
Fixed Rate
|
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 stockholders
of the Fund and will vote together with holders of common stock 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 stock, and the approval of two-thirds of each class, voting separately, of the Fund’s
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 Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s
investment objectives or fundamental investment policies.
The Gabelli
Global Utility & Income Trust
Notes to Financial
Statements (Unaudited) (Continued)
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 Fund’s 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 Fund’s existing contracts and expects the risk
of loss to be remote.
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.
