UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21529
The Gabelli Global Utility & Income Trust
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: June 30, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
(THE GABELLI GLOBAL UTILITY & INCOME TRUST LOGO)
THE GABELLI GLOBAL UTILITY & INCOME TRUST
Semi-Annual Report
June 30, 2008
TO OUR SHAREHOLDERS,
The Gabelli Global Utility & Income Trust's (the "Fund") net asset value
("NAV") total return declined 7.22% during the first half of 2008, compared with
declines of 2.76% and 4.57% for the Standard & Poor's ("S&P") 500 Utilities
Index and for the Lipper Utility Fund Average, respectively. The total return
for the Fund's publicly traded shares declined 7.29% during the first half of
the year. On June 30, 2008, the Fund's NAV per share was $23.05, while the price
of the publicly traded shares closed at $20.77 on the American Stock Exchange.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2008.
COMPARATIVE RESULTS
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2008 (a)
Since
Year to Inception
Quarter Date 1 Year 3 Year (05/28/04)
------- ------- ------ ------ ----------
GABELLI GLOBAL UTILITY & INCOME TRUST
NAV TOTAL RETURN (b) ............. 2.62% (7.22)% (2.30)% 8.57% 11.07%
INVESTMENT TOTAL RETURN (c) ...... 3.69 (7.29) 2.17 8.55 7.71
S&P 500 Index ....................... (2.72) (11.90) (13.11) 4.40 5.26
S&P 500 Utilities Index ............. 7.97 (2.76) 6.63 12.50 18.39
Lipper Utility Fund Average ......... 6.35 (4.57) 2.32 13.81 17.72
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE.
WHEN SHARES ARE SOLD, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA
PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF THE MOST
RECENT MONTH END. PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT
OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE
S&P 500 INDEX IS AN UNMANAGED INDICATOR OF STOCK MARKET PERFORMANCE. THE
S&P 500 UTILITIES INDEX IS AN UNMANAGED INDICATOR OF ELECTRIC AND GAS
UTILITY STOCK PERFORMANCE. THE LIPPER UTILITY FUND AVERAGE REFLECTS THE
AVERAGE PERFORMANCE OF OPEN-END MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR
CATEGORY. DIVIDENDS ARE CONSIDERED REINVESTED. YOU CANNOT INVEST DIRECTLY
IN AN INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN THE NAV PER
SHARE AND REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE AND
ARE NET OF EXPENSES. SINCE INCEPTION RETURN IS BASED ON AN INITIAL NAV OF
$19.06.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE AMERICAN STOCK EXCHANGE AND REINVESTMENT OF DISTRIBUTIONS.
SINCE INCEPTION RETURN IS BASED ON AN INITIAL OFFERING PRICE OF $20.00.
We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com/funds.
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total
investments as of June 30, 2008:
Energy and Utilities: Integrated............... 44.1%
Telecommunications............................. 9.9%
U.S. Government Obligations.................... 8.1%
Cable and Satellite............................ 6.6%
Energy and Utilities:
Electric Transmission and Distribution......... 6.5%
Energy and Utilities: Water.................... 5.1%
Energy and Utilities: Natural Gas Integrated... 5.0%
Energy and Utilities: Natural Gas Utilities.... 3.5%
Energy and Utilities: Oil...................... 2.3%
Computer Software and Services................. 2.1%
Diversified Industrial......................... 1.5%
Wireless Communications........................ 1.1%
Environmental Services......................... 0.8%
Aerospace...................................... 0.7%
Building and Construction...................... 0.7%
Entertainment.................................. 0.5%
Real Estate.................................... 0.4%
Metals and Mining.............................. 0.3%
Energy and Utilities: Services................. 0.2%
Transportation................................. 0.2%
Business Services.............................. 0.2%
Communications Equipment....................... 0.1%
Energy and Utilities: Alternative Energy....... 0.1%
-----
100.0%
=====
THE FUND FILES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION (THE "SEC") FOR THE FIRST AND THIRD QUARTERS
OF EACH FISCAL YEAR ON FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE QUARTER
ENDED MARCH 31, 2008. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT
WWW.GABELLI.COM OR BY CALLING THE FUND AT 800-GABELLI (800-422-3554). THE FUND'S
FORM N-Q IS AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE
REVIEWED AND COPIED AT THE SEC'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC.
INFORMATION ON THE OPERATION OF THE PUBLIC REFERENCE ROOM MAY BE OBTAINED BY
CALLING 1-800-SEC-0330.
PROXY VOTING
The Fund files Form N-PX with its complete proxy voting record for the 12
months ended June 30th, no later than August 31st of each year. A description of
the Fund's proxy voting policies, procedures, and how the Fund voted proxies
relating to portfolio securities is available without charge, upon request, by
(i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One
Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at
www.sec.gov.
SHAREHOLDER MEETING - MAY 19, 2008 - FINAL RESULTS
The Annual Meeting of Shareholders was held on May 19, 2008 at the
Greenwich Library in Greenwich, Connecticut. At that meeting, common
shareholders elected Anthony J. Colavita and Salvatore J. Zizza as Trustees of
the Fund. A total of 2,826,673 votes and 2,825,804 votes were cast in favor of
each Trustee and a total of 127,634 votes and 128,503 votes were withheld for
each Trustee, respectively.
James P. Conn, Mario d'Urso, Vincent D. Enright, Michael J. Melarkey, and
Salvatore M. Salibello continue to serve in their capacities as Trustees of the
Fund.
We thank you for your participation and appreciate your continued support.
2
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS -- 91.4%
ENERGY AND UTILITIES -- 69.1%
ENERGY AND UTILITIES: ALTERNATIVE
ENERGY -- 0.1%
U.S. COMPANIES
2,000 Ormat Technologies Inc. ............ $ 69,085 $ 98,360
------------ ------------
ENERGY AND UTILITIES:
ELECTRIC TRANSMISSION AND
DISTRIBUTION -- 6.5%
NON U.S. COMPANIES
8,775 National Grid plc, ADR ............. 401,681 578,886
1,000 Red Electrica de Espana ............ 57,298 65,104
U.S. COMPANIES
4,900 CH Energy Group Inc. ............... 219,678 174,293
2,000 Consolidated Edison Inc. ........... 86,603 78,180
30,000 Energy East Corp. .................. 709,641 741,600
5,000 Northeast Utilities ................ 90,818 127,650
50,000 NSTAR .............................. 1,187,449 1,691,000
40,000 Pepco Holdings Inc. ................ 757,783 1,026,000
1,666 UIL Holdings Corp. ................. 53,363 48,997
------------ ------------
3,564,314 4,531,710
------------ ------------
ENERGY AND UTILITIES:
INTEGRATED -- 44.1%
NON U.S. COMPANIES
150,000 A2A SpA ............................ 276,010 549,682
500 Areva SA ........................... 204,193 584,910
8,000 Chubu Electric Power Co. Inc. ...... 167,490 195,131
152,000 Datang International Power
Generation Co. Ltd., Cl. H ...... 59,610 90,257
1,000 E.ON AG ............................ 196,712 201,767
9,000 E.ON AG, ADR ....................... 209,576 604,831
10,000 Electric Power Development
Co. Ltd. ........................ 252,321 371,050
45,000 Enel SpA ........................... 354,639 427,937
9,760 Energias de Portugal SA, ADR ....... 262,599 509,759
29,000 Enersis SA, ADR .................... 172,657 451,820
138,000 Hera SpA ........................... 294,336 563,828
10,000 Hokkaido Electric Power Co. Inc. ... 171,210 203,419
10,000 Hokuriku Electric Power Co. ........ 165,392 237,793
5,000 Huaneng Power International
Inc., ADR ....................... 172,976 138,250
75,000 Iberdrola SA ....................... 381,224 1,004,897
12,000 Iberdrola SA, ADR .................. 598,500 643,579
2,000 International Power plc ............ 20,116 17,209
5,000 Korea Electric Power Corp., ADR .... 72,677 72,650
10,000 Kyushu Electric Power Co. Inc. ..... 178,959 209,069
MARKET
SHARES COST VALUE
----------- ------------ ------------
4,500 Oesterreichische
Elektrizitaetswirtschafts
AG, Cl. A ....................... $ 209,779 $ 403,281
10,000 Shikoku Electric Power Co. Inc. .... 171,759 274,992
10,000 The Chugoku Electric Power
Co. Inc. ........................ 170,328 213,307
16,000 The Kansai Electric Power
Co. Inc. ........................ 284,746 374,441
10,000 The Tokyo Electric Power Co. Inc. .. 220,693 257,098
10,000 Tohoku Electric Power Co. Inc. ..... 164,025 217,545
U.S. COMPANIES
1,000 Allegheny Energy Inc. .............. 25,689 50,110
2,000 ALLETE Inc. ........................ 71,269 84,000
19,000 Ameren Corp. ....................... 837,474 802,370
30,000 American Electric
Power Co. Inc. ..................... 947,988 1,206,900
276,100 Aquila Inc.+ ....................... 1,126,867 1,040,897
1,000 Avista Corp. ....................... 20,848 21,460
6,000 Black Hills Corp. .................. 181,668 192,360
500 Cleco Corp. ........................ 9,790 11,665
500 CMS Energy Corp. ................... 5,055 7,450
5,000 Dominion Resources Inc. ............ 232,621 237,450
60,000 DPL Inc. ........................... 1,627,242 1,582,800
40,000 Duke Energy Corp. .................. 563,153 695,200
3,000 El Paso Electric Co.+ .............. 60,480 59,400
8,000 Florida Public Utilities Co. ....... 93,426 95,200
14,000 FPL Group Inc. ..................... 654,896 918,120
35,000 Great Plains Energy Inc. ........... 1,042,669 884,800
26,000 Hawaiian Electric
Industries Inc. ................. 638,670 642,980
29,500 Integrys Energy Group Inc. ......... 1,408,474 1,499,485
6,500 Maine & Maritimes Corp.+ ........... 189,179 275,600
15,000 MGE Energy Inc. .................... 487,338 489,300
44,000 NiSource Inc. ...................... 897,213 788,480
13,000 NorthWestern Corp. ................. 390,834 330,460
19,500 OGE Energy Corp. ................... 481,891 618,345
6,000 Otter Tail Corp. ................... 180,524 232,980
1,000 PG&E Corp. ......................... 33,930 39,690
16,000 Pinnacle West Capital Corp. ........ 650,094 492,320
4,200 PPL Corp. .......................... 117,280 219,534
31,000 Progress Energy Inc. ............... 1,324,875 1,296,730
32,000 Public Service Enterprise
Group Inc. ...................... 1,065,920 1,469,760
25,000 Puget Energy Inc. .................. 685,388 599,750
18,000 SCANA Corp. ........................ 646,320 666,000
45,000 Southern Co. ....................... 1,322,848 1,571,400
1,000 TECO Energy Inc. ................... 15,970 21,490
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES (CONTINUED)
ENERGY AND UTILITIES: INTEGRATED
(CONTINUED)
U.S. COMPANIES (CONTINUED)
1,250 The Empire District Electric Co. ... $ 28,573 $ 23,175
15,000 Unisource Energy Corp. ............. 369,330 465,150
17,000 Vectren Corp. ...................... 408,701 530,570
41,000 Westar Energy Inc. ................. 860,569 881,910
5,000 Wisconsin Energy Corp. ............. 171,276 226,100
45,000 Xcel Energy Inc. ................... 761,339 903,150
------------ ------------
26,070,198 30,993,043
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS
INTEGRATED -- 5.0%
NON U.S. COMPANIES
80,000 Snam Rete Gas SpA .................. 347,871 546,966
U.S. COMPANIES
25,000 El Paso Corp. ...................... 220,000 543,500
1,000 Energen Corp. ...................... 30,935 78,030
16,000 National Fuel Gas Co. .............. 410,803 951,680
2,000 ONEOK Inc. ......................... 51,437 97,660
15,000 Southern Union Co. ................. 347,572 405,300
30,000 Spectra Energy Corp. ............... 634,201 862,200
------------ ------------
2,042,819 3,485,336
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS
UTILITIES -- 3.5%
NON U.S. COMPANIES
1,000 Enagas ............................. 28,973 28,340
U.S. COMPANIES
20,000 Atmos Energy Corp. ................. 492,410 551,400
2,000 Chesapeake Utilities Corp. ......... 53,224 51,440
3,500 EnergySouth Inc. ................... 192,125 171,710
20,000 Nicor Inc. ......................... 667,385 851,800
5,000 Piedmont Natural Gas Co. Inc. ...... 116,790 130,800
10,000 Southwest Gas Corp. ................ 250,760 297,300
9,500 The Laclede Group Inc. ............. 286,645 383,515
------------ ------------
2,088,312 2,466,305
------------ ------------
ENERGY AND UTILITIES: OIL -- 2.3%
NON U.S. COMPANIES
500 Niko Resources Ltd. ................ 28,728 47,926
600 Petroleo Brasileiro SA, ADR ........ 39,320 42,498
9,000 Royal Dutch Shell plc,
Cl. A, ADR ...................... 460,931 735,390
U.S. COMPANIES
3,000 Chevron Corp. ...................... 182,580 297,390
2,000 ConocoPhillips ..................... 74,050 188,780
2,000 Devon Energy Corp. ................. 67,255 240,320
1,000 Exxon Mobil Corp. .................. 45,500 88,130
------------ ------------
898,364 1,640,434
------------ ------------
MARKET
SHARES COST VALUE
----------- ------------ ------------
ENERGY AND UTILITIES:
SERVICES -- 0.2%
NON U.S. COMPANIES
5,000 ABB Ltd., ADR+ ..................... $ 54,615 $ 141,600
------------ ------------
ENERGY AND UTILITIES: WATER -- 5.1%
NON U.S. COMPANIES
1,000 Consolidated Water Co. Ltd. ........ 20,230 19,800
47,000 Severn Trent plc ................... 831,215 1,202,031
2,000 Suez SA ............................ 62,915 136,726
12,000 Suez SA, ADR ....................... 362,710 817,521
7,200 Suez SA, Strips+ ................... 0 113
48,000 United Utilities plc ............... 482,680 656,349
U.S. COMPANIES
8,666 Aqua America Inc. .................. 129,735 138,396
3,000 California Water
Service Group ................... 84,840 98,310
4,000 Middlesex Water Co. ................ 75,033 66,360
17,000 SJW Corp. .......................... 277,304 448,800
------------ ------------
2,326,662 3,584,406
------------ ------------
DIVERSIFIED INDUSTRIAL -- 1.5%
NON U.S. COMPANIES
13,000 Bouygues SA ........................ 434,634 862,928
U.S. COMPANIES
4,500 Woodward Governor Co. .............. 64,177 160,470
------------ ------------
498,811 1,023,398
------------ ------------
ENVIRONMENTAL SERVICES -- 0.8%
NON U.S. COMPANIES
10,000 Veolia Environnement ............... 322,146 560,979
------------ ------------
TOTAL ENERGY AND UTILITIES ......... 37,935,326 48,525,571
------------ ------------
COMMUNICATIONS -- 17.6%
CABLE AND SATELLITE -- 6.6%
NON U.S. COMPANIES
10,000 Cogeco Inc. ........................ 195,069 304,011
2,500 Rogers Communications Inc., Cl. B .. 25,532 96,650
5,400 Zon Multimedia Servicos de
Telecomunicacoes e
Multimedia SGPS SA .............. 53,052 44,891
U.S. COMPANIES
38,000 Cablevision Systems Corp., Cl. A+ .. 870,675 858,800
17,000 DISH Network Corp., Cl. A+ ......... 445,381 497,760
3,600 EchoStar Corp., Cl. A+ ............. 103,356 112,392
4,580 Liberty Global Inc., Cl. A+ ........ 86,290 143,949
4,000 Liberty Global Inc., Cl. C+ ........ 72,761 121,440
95,000 The DIRECTV Group Inc.+ ............ 2,154,874 2,461,450
------------ ------------
4,006,990 4,641,343
------------ ------------
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
SHARES/ MARKET
UNITS COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS (CONTINUED)
TELECOMMUNICATIONS -- 9.9%
NON U.S. COMPANIES
2,102 Bell Aliant Regional
Communications
Income Fund+ (a)(b) ............. $ 51,669 $ 61,126
26,000 BT Group plc, ADR .................. 890,462 1,032,980
32,000 Deutsche Telekom AG, ADR ........... 558,559 523,840
6,000 France Telecom SA, ADR ............. 149,213 177,780
3,000 Manitoba Telecom Services Inc. ..... 100,193 117,711
22,000 Portugal Telecom SGPS SA ........... 274,580 249,740
15,000 Royal KPN NV, ADR .................. 114,993 257,603
1,500 Swisscom AG ........................ 478,884 500,343
20,000 Telecom Italia SpA ................. 65,112 40,306
16,000 Telefonica SA, ADR ................. 658,948 1,273,280
14,000 Telefonos de Mexico SAB de CV,
Cl. L, ADR ...................... 126,939 331,520
13,000 Telmex Internacional SAB de CV,
ADR+ ............................ 82,025 209,300
U.S. COMPANIES
30,000 AT&T Inc. .......................... 866,033 1,010,700
1,000 Embarq Corp. ....................... 32,460 47,270
471 FairPoint Communications Inc. ...... 4,567 3,396
22,000 Sprint Nextel Corp. ................ 344,052 209,000
25,000 Verizon Communications Inc. ........ 908,836 885,000
------------ ------------
5,707,525 6,930,895
------------ ------------
WIRELESS COMMUNICATIONS -- 1.1%
NON U.S. COMPANIES
1,000 America Movil SAB de CV, Cl. L,
ADR ............................. 60,326 52,750
2,500 Millicom International Cellular
SA .............................. 214,414 258,750
1,600 Mobile TeleSystems OJSC,
ADR ............................. 54,874 122,576
7,000 Vimpel-Communications, ADR ......... 42,795 207,760
2,500 Vodafone Group plc, ADR ............ 80,064 73,650
U.S. COMPANIES
1,200 United States
Cellular Corp.+ ................. 54,881 67,860
------------ ------------
507,354 783,346
------------ ------------
TOTAL COMMUNICATIONS ............... 10,221,869 12,355,584
------------ ------------
MARKET
SHARES COST VALUE
----------- ------------ ------------
OTHER -- 4.7%
AEROSPACE -- 0.7%
NON U.S. COMPANIES
74,000 Rolls-Royce Group plc+ ............. $ 549,871 $ 503,356
6,092,800 Rolls-Royce Group plc, Cl. B ....... 12,101 12,136
------------ ------------
561,972 515,492
------------ ------------
BUILDING AND CONSTRUCTION -- 0.7%
NON U.S. COMPANIES
2,000 Acciona SA ......................... 650,015 475,013
------------ ------------
BUSINESS SERVICES -- 0.2%
NON U.S. COMPANIES
3,700 Sistema JSFC, GDR .................. 103,097 111,222
------------ ------------
COMPUTER SOFTWARE AND
SERVICES -- 2.1%
U.S. COMPANIES
60,000 Electronic Data Systems Corp. ...... 1,469,800 1,478,400
------------ ------------
ENTERTAINMENT -- 0.5%
NON U.S. COMPANIES
10,000 Vivendi ............................ 309,439 379,444
------------ ------------
METALS AND MINING -- 0.3%
NON U.S. COMPANIES
3,200 Compania de Minas
Buenaventura SA, ADR ............ 66,939 209,184
------------ ------------
REAL ESTATE -- 0.1%
NON U.S. COMPANIES
2,000 Brookfield Asset
Management Inc., Cl. A .......... 70,670 65,080
------------ ------------
TRANSPORTATION -- 0.1%
U.S. COMPANIES
2,000 GATX Corp. ......................... 56,076 88,660
------------ ------------
TOTAL OTHER ........................ 3,288,008 3,322,495
------------ ------------
TOTAL COMMON STOCKS ................ 51,445,203 64,203,650
------------ ------------
CONVERTIBLE PREFERRED STOCKS -- 0.1%
COMMUNICATIONS -- 0.0%
TELECOMMUNICATIONS -- 0.0%
U.S. COMPANIES
500 Cincinnati Bell Inc.,
6.750% Cv.Pfd., Ser.B ........... 20,555 20,100
------------ ------------
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
CONVERTIBLE PREFERRED STOCKS
(CONTINUED)
OTHER -- 0.1%
TRANSPORTATION -- 0.1%
U.S. COMPANIES
200 GATX Corp., $2.50 Cv. Pfd. $ 26,010 $ 45,400
------------ ------------
TOTAL CONVERTIBLE PREFERRED
STOCKS 46,565 65,500
------------ ------------
PRINCIPAL
AMOUNT
-----------
CONVERTIBLE CORPORATE BONDS -- 0.4%
COMMUNICATIONS -- 0.1%
COMMUNICATIONS EQUIPMENT -- 0.1%
U.S. COMPANIES
$ 100,000 Agere Systems Inc., Sub. Deb. Cv.,
6.500%, 12/15/09 .................. 100,497 102,000
------------ ------------
OTHER -- 0.3%
REAL ESTATE -- 0.3%
U.S. COMPANIES
350,000 Palm Harbor Homes Inc., Cv.,
3.250%, 05/15/24 ............... 325,736 208,250
------------ ------------
TOTAL CONVERTIBLE CORPORATE BONDS 426,233 310,250
------------ ------------
PRINCIPAL MARKET
AMOUNT COST VALUE
----------- ------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 8.1%
5,695,000 U.S. Treasury Bills,
1.132% to 1.895%++,
07/17/08 to 10/09/08 ........... $ 5,676,552 $ 5,672,888
------------ ------------
TOTAL INVESTMENTS -- 100.0% ..................... $ 57,594,553 70,252,288
============
OTHER ASSETS AND LIABILITIES (NET) .............. 41,105
------------
NET ASSETS -- COMMON SHARES
(3,050,236 common shares outstanding) ........... $ 70,293,393
============
NET ASSET VALUE PER COMMON SHARE
($70,293,393 / 3,050,236 shares outstanding) .... $ 23.05
============
----------
(a) 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. At June 30, 2008,
the market value of the Rule 144A security amounted to $61,126 or 0.09% of
total investments.
(b) Security fair valued under procedures established by the Board of Trustees
(the "Board"). The procedures may include reviewing available financial
information about the company and reviewing the valuation of comparable
securities and other factors on a regular basis. At June 30, 2008, the
market value of the fair valued security amounted to $61,126 or 0.09% of
total investments.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depositary Receipt
GDR Global Depositary Receipt
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ -----------
North America ........................................... 68.3% $47,991,131
Europe .................................................. 25.8 18,089,283
Japan ................................................... 3.6 2,553,845
Latin America ........................................... 1.9 1,316,872
Asia/Pacific ............................................ 0.4 301,157
------ -----------
Total Investments ....................................... 100.0% $70,252,288
====== ===========
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL UTILITY & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2008 (UNAUDITED)
ASSETS:
Investments, at value (cost $57,594,553) ..................... $70,252,288
Foreign currency, at value (cost $7,677) ..................... 7,674
Cash ......................................................... 3,545
Receivable for investment sold ............................... 3,420
Dividends and interest receivable ............................ 237,884
Deferred offering expense .................................... 109,678
Prepaid expense .............................................. 1,464
-----------
TOTAL ASSETS ................................................. 70,615,953
-----------
LIABILITIES:
Payable for investments purchased ............................ 133,100
Payable for investment advisory fees ......................... 58,360
Payable for payroll expenses ................................. 46,557
Payable for accounting fees .................................. 3,752
Payable for shareholder communications expenses .............. 35,605
Payable for legal and audit fees ............................. 33,454
Unrealized depreciation on swap contracts .................... 7,381
Other accrued expenses ....................................... 4,351
-----------
TOTAL LIABILITIES ............................................ 322,560
-----------
NET ASSETS applicable to 3,050,236 shares outstanding ........ $70,293,393
===========
NET ASSETS CONSIST OF:
Paid-in capital, at $0.001 par value ......................... $57,339,958
Accumulated net investment income ............................ 174,858
Accumulated net realized gain on investments, swap contracts,
and foreign currency transactions ......................... 124,956
Net unrealized appreciation on investments ................... 12,657,735
Net unrealized depreciation on swap contracts ................ (7,381)
Net unrealized appreciation on foreign currency
translations .............................................. 3,267
-----------
NET ASSETS ................................................... $70,293,393
===========
NET ASSET VALUE PER COMMON SHARE:
($70,293,393 / 3,050,236 shares outstanding;
unlimited number of shares authorized) ....................... $ 23.05
===========
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $63,406) .................. $ 1,253,968
Interest ..................................................... 70,608
-----------
TOTAL INVESTMENT INCOME ...................................... 1,324,576
-----------
EXPENSES:
Investment advisory fees ..................................... 359,391
Payroll expenses ............................................. 46,536
Shareholder communications expenses .......................... 37,762
Trustees' fees ............................................... 29,773
Legal and audit fees ......................................... 28,249
Accounting fees .............................................. 22,500
Custodian fees ............................................... 17,553
Shareholder services fees .................................... 6,332
Interest expense ............................................. 134
Miscellaneous expenses ....................................... 12,806
-----------
TOTAL EXPENSES ............................................... 561,036
Less: Custodian fee credits .................................. (398)
-----------
NET EXPENSES ................................................. 560,638
-----------
NET INVESTMENT INCOME ........................................ 763,938
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, AND FOREIGN CURRENCY:
Net realized gain on investments ............................. 1,022,001
Net realized loss on swap contracts .......................... (127,369)
Net realized gain on foreign currency transactions ........... 211
-----------
Net realized gain on investments, swap contracts, and
foreign currency transactions ............................. 894,843
-----------
Net change in unrealized appreciation/depreciation:
on investments ............................................ (7,305,213)
on swap contracts ......................................... (11,645)
on foreign currency translations .......................... 1,371
-----------
Net change in unrealized appreciation/depreciation on
investments, swap contracts, and foreign currency
translations .............................................. (7,315,487)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, AND FOREIGN CURRENCY ...................... (6,420,644)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ......... $(5,656,706)
===========
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL UTILITY & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30, 2008 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2007
---------------- -----------------
OPERATIONS:
Net investment income ........................................ $ 763,938 $ 1,402,938
Net realized gain on investments, swap contracts, and foreign
currency transactions ..................................... 894,843 3,477,970
Net change in unrealized appreciation/depreciation on
investments, swap contracts, and foreign currency
translations .............................................. (7,315,487) 2,757,570
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................ (5,656,706) 7,638,478
----------- -----------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ........................................ (1,060,108)* (921,781)
Net realized short-term gain on investments, swap contracts,
and foreign currency transactions ......................... -- (859,557)
Net realized long-term gain on investments, swap contracts,
and foreign currency transactions ......................... (768,143)* (2,885,523)
----------- -----------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS ................... (1,828,251) (4,666,861)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ........................ (7,484,957) 2,971,617
NET ASSETS:
Beginning of period .......................................... 77,778,350 74,806,733
----------- -----------
End of period (including undistributed net investment income
of $174,858 and $471,028, respectively) ................... $70,293,393 $77,778,350
=========== ===========
----------
* Based on fiscal year to date book income. Amounts are subject to change and
recharacterization at fiscal year end.
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL UTILITY & INCOME TRUST
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, PERIOD ENDED
JUNE 30, 2008 -------------------------------- DECEMBER 31,
(UNAUDITED) 2007 2006 2005 2004 (d)
---------------- -------- -------- -------- ------------
SELECTED DATA FOR A COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD:
OPERATING PERFORMANCE:
Net asset value, beginning of period ................... $ 25.50 $ 24.52 $ 20.45 $ 21.03 $ 19.06(e)
------- ------- ------- ------- -------
Net investment income .................................. 0.25 0.45 0.64 0.64 0.28
Net realized and unrealized gain (loss) on investments,
swap contracts, and foreign currency transactions ... (2.10) 2.06 4.63 0.23 2.29
------- ------- ------- ------- -------
Total from investment operations ....................... (1.85) 2.51 5.27 0.87 2.57
------- ------- ------- ------- -------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income .................................. (0.35)(a) (0.30) (0.65) (0.63) (0.28)
Net realized gain on investments ....................... (0.25)(a) (1.23) (0.55) (0.82) (0.06)
Return of capital ...................................... -- -- -- -- (0.26)
------- ------- ------- ------- -------
Total distributions to common shareholders ............. (0.60) (1.53) (1.20) (1.45) (0.60)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ......................... $ 23.05 $ 25.50 $ 24.52 $ 20.45 $ 21.03
======= ======= ======= ======= =======
NAV total return + ..................................... (7.22)% 10.46% 26.66% 4.2% 13.9%(f)
======= ======= ======= ======= =======
Market value, end of period ............................ $ 20.77 $ 23.05 $ 22.17 $ 17.76 $ 19.63
======= ======= ======= ======= =======
Total investment return ++ ............................. (7.29)% 11.29% 32.83% (2.3)% 1.3%(g)
======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................... $70,293 $77,778* $74,807 $62,381 $64,160
Ratio of net investment income to average net assets ... 2.13%(b) 1.82% 2.92% 2.99% 2.23%(b)
Ratio of operating expenses to average net assets ...... 1.56%(b)(c) 1.55%(c) 1.66%(c) 1.56%(c) 1.49%(b)
Portfolio turnover rate +++ ............................ 11.9% 16.7% 21.8% 21.0% 16.9%
----------
+ Based on net asset value per share, adjusted for reinvestment of
distributions at the net asset value per share on the ex-dividend dates.
Total returns for periods of less than one year are not annualized.
++ Based on market value per share, adjusted for reinvestment of distributions
at prices obtained under the Fund's dividend reinvestment plan. Total
returns for periods of less than one year are not annualized.
+++ Effective in 2008, a change in accounting policy was adopted with regard to
the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended December 31, 2007, 2006, and 2005, would have been 35.0%, 22.2%, and
37.8%, respectively. The portfolio turnover rate for the period ended
December 31, 2004 would have been as shown.
* Revised to correct a typographical error.
(a) Based on fiscal year to date book income. Amounts are subject to change and
recharacterization at fiscal year end.
(b) Annualized.
(c) For the six months ended June 30, 2008 and the fiscal years ended December
31, 2007, 2006, and 2005, the effect of the custodian fee credits was
minimal.
(d) The Gabelli Global Utility & Income Trust commenced investment operations
on May 28, 2004.
(e) The beginning of period NAV reflects a $0.04 reduction for costs associated
with the initial public offering.
(f) Based on net asset value per share at commencement of operations of $19.06
per share.
(g) Based on market value per share at initial public offering of $20.00 per
share.
See accompanying notes to financial statements.
9
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 periodically pay dividends.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with United States ("U.S.") generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies followed by the 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 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 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 instruments with remaining maturities of 60 days or less that are not
credit impaired are valued at amortized cost, unless the Board determines such
amount does not reflect the securities' fair value, in which case these
securities will be fair valued as determined by the Board. Debt instruments
having a maturity greater than 60 days for which market quotations are readily
available are valued at the average of the latest bid and asked prices. If there
were no asked prices quoted on such day, the security is valued using the
closing bid price. Futures contracts are valued at the closing settlement price
of the exchange or board of trade on which the applicable contract is traded.
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 to the
valuation and changes in valuation of similar securities, including a comparison
of foreign securities to the equivalent U.S. dollar value ADR securities at the
close of the U.S. exchange; and evaluation of any other information that could
be indicative of the value of the security.
10
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
On January 1, 2008, the Fund adopted Statement of Financial Accounting
Standard No. 157, "Fair Value Measurements" ("SFAS 157") that clarifies the
definition of fair value for financial reporting, establishes a framework for
measuring fair value, and requires additional disclosures about the use of fair
value measurements. The three levels of the fair value hierarchy under SFAS 157
are described 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 Fund's
determinations as to the fair value of investments).
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 inputs used to value the Fund's net assets as of June 30, 2008 is as
follows:
INVESTMENTS IN OTHER FINANCIAL
SECURITIES INSTRUMENTS (UNREALIZED
VALUATION INPUTS (MARKET VALUE) DEPRECIATION)*
---------------- -------------- -----------------------
Level 1 - Quoted Prices ......................... $64,269,150 --
Level 2 - Other Significant Observable Inputs ... 5,983,138 $(7,381)
----------- -------
TOTAL ........................................... $70,252,288 $(7,381)
=========== =======
----------
* Other financial instruments are derivative instruments not reflected in the
Schedule of Investments, such as futures, forwards, and swaps which are
valued at the unrealized appreciation/depreciation on the investment.
In March 2008, The Financial Accounting Standards Board (The "FASB") issued
Statement of Financial Accounting Standard No. 161, "Disclosures about
Derivative Instruments and Hedging Activities" ("SFAS 161") that is effective
for fiscal years beginning after November 15, 2008. SFAS 161 is intended to
improve financial reporting for derivative instruments by requiring enhanced
disclosure that enables investors to understand how and why an entity uses
derivatives, how derivatives are accounted for, and how derivative instruments
affect an entity's results of operations and financial position. Management is
currently evaluating the implications of SFAS 161 on the Fund's financial
statement disclosures.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System, or with other brokers or
dealers that meet credit guidelines established by the Adviser and reviewed by
the Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited. At June 30,
2008, there were no open repurchase agreements.
11
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
SWAP AGREEMENTS. The Fund may enter into equity and contract for difference
swap transactions. 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 a swap, a set of future cash flows
are 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. There is no assurance that the swap
contract counterparties will be able to meet their obligations pursuant to the
swap contracts, or that, in the event of default, the Fund will succeed in
pursuing contractual remedies. The Fund thus assumes the risk that it may be
delayed in or prevented from obtaining payments owed to it pursuant to the swap
contracts. The creditworthiness of the swap contract counterparties is closely
monitored in order to minimize the risk. Depending on the general state of
short-term interest rates and the returns of the Fund's portfolio securities at
that point in time, such a default could negatively affect the Fund's ability to
make dividend payments. In addition, at the time an equity 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. If this occurs, it
could have a negative impact on the Fund's ability to make dividend payments.
The use of derivative instruments involves, to varying degrees, elements of
market and counterparty risk in excess of the amount recognized below.
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 paid or received on swaps, is reported as unrealized appreciation
or depreciation in the Statement of Operations. A realized gain or loss is
recorded upon termination of swap agreements.
The Fund has entered into contract for difference swap agreements with
Bear, Stearns International Limited. Details of the swap at June 30, 2008 are as
follows:
NOTIONAL EQUITY SECURITY INTEREST RATE/ TERMINATION NET UNREALIZED
AMOUNT RECEIVED EQUITY SECURITY PAID DATE DEPRECIATION
------------------------ --------------------- -------------------------------- ----------- --------------
Market Value Overnight LIBOR plus 40 bps plus
Appreciation on: Market Value Depreciation on:
$264,822 (36,000 Shares) Rolls-Royce Group plc Rolls-Royce Group plc 03/17/09 $(7,381)
FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose
of hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin." Subsequent payments ("variation margin") are made
or received by the Fund each day, depending on the daily fluctuations in the
value of the contract, which are included in unrealized
appreciation/depreciation on investments and futures contracts. The Fund
recognizes a realized gain or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as
a hedging instrument. The change in value of futures contracts primarily
corresponds with the value of their underlying instruments, which may not
correlate with the change in value of the hedged investments. In addition, there
is the risk that the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market. At June 30, 2008, there were no open
futures contracts.
12
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
SECURITIES SOLD SHORT. The Fund may enter into short sale transactions.
Short selling involves selling securities that may or may not be owned and, at
times, borrowing the same securities for delivery to the purchaser, with an
obligation to replace such borrowed securities at a later date. The proceeds
received from short sales are recorded as liabilities and the Fund records an
unrealized gain or loss to the extent of the difference between the proceeds
received and the value of an open short position on the day of determination.
The Fund records a realized gain or loss when the short position is closed out.
By entering into a short sale, the Fund bears the market risk of an unfavorable
change in the price of the security sold short. Dividends on short sales are
recorded as an expense by the Fund on the ex-dividend date and interest expense
is recorded on the accrual basis. At June 30, 2008, there were no open
securities sold short.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency translations. When the contract is closed, the 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 Fund's portfolio securities, but it
does establish a rate of exchange that can be achieved in the future. Although
forward foreign exchange contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that might
result should the value of the currency increase. In addition, the Fund could be
exposed to risks if the counterparties to the contracts are unable to meet the
terms of their contracts. At June 30, 2008, there were no open forward foreign
exchange contracts.
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 the 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 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 ability to repatriate funds,
less complete financial information about companies, and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
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.
13
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded on the accrual
basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the
ex-dividend date except for certain dividends which are recorded as soon as the
Fund is informed of the dividend.
CUSTODIAN FEE CREDITS AND INTEREST EXPENSE. When cash balances are
maintained in the custody account, the Fund receives credits which are used to
offset custodian fees. The gross expenses paid under the custody arrangement are
included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as "custodian fee credits." When cash balances are
overdrawn, the Fund is charged an overdraft fee of 2.00% above the federal funds
rate on outstanding balances. This amount, if any, would be shown as "interest
expense" in the Statement of Operations.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders are recorded
on the ex-dividend date. Distributions to shareholders are based on income and
capital gains as determined in accordance with federal income tax regulations,
which may differ from income and capital gains as determined under U.S.
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities and
foreign currency transactions held by the Fund, timing differences, and
differing characterizations of distributions made by the Fund. Distributions
from net investment income 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.
The tax character of distributions paid during the fiscal year ended
December 31, 2007 was as follows:
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short-term capital gains) .. $1,782,462
Net long-term capital gains ................. 2,884,399
----------
Total distributions paid .................... $4,666,861
==========
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.
As of December 31, 2007, the components of accumulated earnings/(losses) on
a tax basis were as follows:
Net unrealized appreciation on investments ............................. $19,944,717
Net unrealized appreciation on foreign currency and swap contracts ..... 6,160
Undistributed ordinary income (inclusive of short-term capital gains) .. 500,535
Post-October currency loss deferral .................................... (10,785)
Other temporary differences* ........................................... (2,235)
-----------
Total .................................................................. $20,438,392
===========
----------
* Other temporary differences are primarily due to adjustments to accruals on
swap contracts.
14
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The following summarizes the tax cost of investments, and the related
unrealized appreciation/(depreciation) at June 30, 2008:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
----------- ------------ ------------ --------------
Investments ..... $57,727,743 $14,183,377 $(1,658,832) $12,524,545
Swap contracts .. -- -- (7,381) (7,381)
----------- ----------- ----------- -----------
$57,727,743 $14,183,377 $(1,666,213) $12,517,164
=========== =========== =========== ===========
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" (the "Interpretation") established a
minimum threshold for financial statement recognition of the benefit of
positions taken in filing tax returns (including whether the Fund is taxable in
a particular jurisdiction) and required certain expanded tax disclosures.
For the six months ended June 30, 2008, the Fund did not have any liability
for any unrecognized tax benefits. The Fund recognizes interest and penalties,
if any, related to unrecognized tax benefits as income tax expenses in the
Statement of Operations. The Fund is not subject to examination by U.S. federal
tax authorities for tax years before 2004 and by state tax authorities for tax
years before 2003.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Fund has entered into an
investment advisory agreement (the "Advisory Agreement") with the Adviser which
provides that the Fund will pay the Adviser a fee, computed weekly and paid
monthly, equal on an annual basis to 1.00% of the value of the Fund's average
weekly net assets. 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, 2008, the Fund paid brokerage
commissions on security trades of $7,699 to Gabelli & Company, Inc. ("Gabelli &
Company"), an affiliate of the Adviser.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant
to the Advisory Agreement. During the six months ended June 30, 2008, the Fund
paid or accrued $22,500 to the Adviser in connection with the cost of computing
the Fund's NAV.
As per the approval of the Board, the Fund compensates officers of the
Fund, who are employed by the Fund and are not employed by the Adviser (although
the officers may receive incentive based variable compensation from affiliates
of the Adviser) and pays its allocated portion of the cost of the Fund's Chief
Compliance Officer. For the six months ended June 30, 2008 the Fund paid or
accrued $46,536, which is included in payroll expenses in the Statement of
Operations.
The Fund pays each Trustee who is not considered to be an affiliated person
an annual retainer of $3,000 plus $1,000 for each Board meeting attended and
they are reimbursed for any out of pocket expenses incurred in attending
meetings. All Board committee members receive $500 per meeting attended. In
addition, 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
Director receives an annual fee of $1,000. 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 proceeds from the sales of securities for
the six months ended June 30, 2008, other than short-term securities and U.S.
Government obligations, aggregated $8,050,035 and $7,966,709, respectively.
15
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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, 2008, the Fund did not have any transactions in shares of beneficial
interest.
At the Fund's November 14, 2007 Board meeting, the Board approved the
filing of a shelf registration with the SEC which will give the Fund the ability
to offer preferred shares. The shelf registration was declared effective by the
SEC on March 19, 2008.
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 and expects the risk of loss to be remote.
8. OTHER MATTERS. On April 24, 2008, the Adviser entered into an administrative
settlement with the SEC to resolve the SEC's inquiry regarding prior frequent
trading activity in shares of the GAMCO Global Growth Fund (the "Global Growth
Fund") by one investor who was banned from the Global Growth Fund in August
2002. In the settlement, the SEC found that the Adviser had violated Section
206(2) of the Investment Advisers Act, Section 17(d) of the 1940 Act and Rule
17d-1 thereunder, and had aided and abetted and caused violations of Section
12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, the Adviser,
while neither admitting nor denying the SEC's findings and allegations, agreed,
among other things, to pay the previously reserved total of $16 million
(including a $5 million penalty), of which at least $11 million will be
distributed to shareholders of the Global Growth Fund in accordance with a plan
to be developed by an independent distribution consultant and approved by the
independent directors of the Global Growth Fund and the staff of the SEC, and to
cease and desist from future violations of the above referenced federal
securities laws. The settlement will not have a material adverse impact on the
Adviser or its ability to fulfill its obligations under the Advisory Agreement.
On the same day, the SEC filed a civil action against the Executive Vice
President and Chief Operating Officer of the Adviser, alleging violations of
certain federal securities laws arising from the same matter. The officer is
also an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO
fund complex. The officer denies the allegations and is continuing in his
positions with the Adviser and the funds. The Adviser currently expects that any
resolution of the action against the officer will not have a material adverse
impact on the Adviser or its ability to fulfill its obligations under the
Advisory Agreement.
On a separate matter, in August 2008, the Adviser made an offer to the
staff of the SEC to settle a previously disclosed matter concerning compliance
with Section 19(a) and Rule 19a-1 of the 1940 Act by two closed-end funds
managed by the Adviser. These provisions require registered investment companies
to provide written statements to shareholders when a distribution is made in the
nature of a dividend from a source other than net investment income. While the
two funds sent annual statements and provided other materials containing this
information, the funds did not send the notices required by Rule 19a-1 to
shareholders with each distribution in 2002 and 2003. The Adviser believes that
the funds have been in compliance with Rule 19a-1 since that time. The Adviser
believes that the settlement would have no effect on the funds or any material
adverse effect on the Adviser or its ability to manage the funds. This offer of
settlement is subject to final agreement regarding the specific language of the
SEC's administrative order and other settlement documents and approval by the
SEC.
16
THE GABELLI GLOBAL UTILITY & INCOME TRUST
BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
At its meeting on May 22, 2008, the Board of Trustees ("Board") of the Fund
approved the continuation of the investment advisory agreement with the Adviser
for the Fund on the basis of the recommendation by the trustees who are not
"interested persons" of the Fund (the "Independent Board Members"). The
following paragraphs summarize the material information and factors considered
by the Independent Board Members as well as their conclusions relative to such
factors.
NATURE, EXTENT AND QUALITY OF SERVICES. The Independent Board Members considered
information regarding the portfolio manager, the depth of the analyst pool
available to the Adviser and the portfolio manager, the scope of supervisory,
administrative, shareholder, and other services supervised or provided by the
Adviser and the absence of significant service problems reported to the Board.
The Independent Board Members noted the experience, length of service, and
reputation of the portfolio manager.
INVESTMENT PERFORMANCE. The Independent Board Members reviewed the short,
medium, and long-term performance of the Fund since inception against a peer
group of equity closed-end funds and the customized peer group selected by
Lipper. The Independent Board Members noted that the Fund's short and
medium-term performance was in the top third and top quartile, respectively.
PROFITABILITY. The Independent Board Members reviewed summary data regarding the
profitability of the Fund to the Adviser both with an administrative overhead
charge and without such charge and found the profitability to be below normal.
The Independent Board Members also noted that a substantial portion of the
Fund's portfolio transactions were executed by an affiliated broker, and that
the affiliated broker received distribution fees and commissions from the Fund.
The Adviser received a moderate amount of soft dollar benefits (but no third
party research services) from unaffiliated brokers through the Fund's portfolio
brokerage.
ECONOMIES OF SCALE. The Independent Board Members discussed the major elements
of the Adviser's cost structure and the relationship of those elements to
potential economies of scale. The Independent Board Members noted that the Fund
was a closed-end fund and unlikely to realize any economies of scale potentially
available through growth in the absence of additional offerings.
SHARING OF ECONOMIES OF SCALE. The Independent Board Members noted that the
investment management fee schedule for the Fund does not take into account any
potential economies of scale.
SERVICE AND COST COMPARISONS. The Independent Board Members compared the expense
ratios of the investment advisory fee, other expenses, and total expenses of the
Fund with similar expense ratios of the peer group of equity closed-end funds
and noted that the advisory fee includes substantially all administrative
services of the Fund as well as investment advisory services of the Adviser. The
Independent Board Members noted that the Fund's expense ratios were above
average and the Fund's size was below average within the group. The Independent
Board Members were presented with, but did not consider to be material to their
decision, various information comparing the advisory fee with the fee for other
types of accounts managed by the Adviser.
CONCLUSIONS. The Independent Board Members concluded that the Fund enjoyed
highly experienced portfolio management services, good ancillary services, and a
reasonable performance record within its conservative stance. The Independent
Board Members also concluded that the Fund's expense ratios were reasonable in
light of the Fund's size, and that, in part due to the Fund's structure as a
closed-end fund, economies of scale were not a significant factor in their
thinking. The Independent Board Members did not view the potential profitability
of ancillary services as material to their decision. On the basis of the
foregoing and without assigning particular weight to any single conclusion, the
Independent Board Members determined to recommend continuation of the investment
management agreement to the full Board.
17
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
ENROLLMENT IN THE PLAN
It is the Policy of The Gabelli Global Utility & Income Trust (the "Fund")
to automatically reinvest dividends payable to common shareholders. As a
"registered" shareholder you automatically become a participant in the Fund's
Automatic Dividend Reinvestment Plan (the "Plan"). The Plan authorizes the Fund
to credit common shares to participants upon an income dividend or a capital
gains distribution regardless of whether the shares are trading at a discount or
a premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Fund. Plan participants may send their share
certificates to Computershare Trust Company, N.A. ("Computershare") to be held
in their dividend reinvestment account. Registered shareholders wishing to
receive their distributions in cash must submit this request in writing to:
The Gabelli Global Utility & Income Trust
c/o Computershare
P.O. Box 43010
Providence, RI 02940-3010
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan or requesting a copy of the terms of the
Plan may contact Computershare at (800) 336-6983.
If your shares are held in the name of a broker, bank, or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your distributions will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of common shares distributed to participants in the Plan in lieu
of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Fund's common shares is equal to or exceeds net
asset value at the time shares are valued for purposes of determining the number
of shares equivalent to the cash dividends or capital gains distribution,
participants are issued common shares valued at the greater of (i) the net asset
value as most recently determined or (ii) 95% of the then current market price
of the Fund's common shares. The valuation date is the dividend or distribution
payment date or, if that date is not an American Stock Exchange ("Amex") trading
day, the next trading day. If the net asset value of the common shares at the
time of valuation exceeds the market price of the common shares, participants
will receive common shares from the Fund valued at market price. If the Fund
should declare a dividend or capital gains distribution payable only in cash,
Computershare will buy common shares in the open market, or on the Amex or
elsewhere, for the participants' accounts, except that Computershare will
endeavor to terminate purchases in the open market and cause the Fund to issue
shares at net asset value if, following the commencement of such purchases, the
market value of the common shares exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our
shareholders to increase their investment in the Fund. In order to participate
in the Voluntary Cash Purchase Plan, shareholders must have their shares
registered in their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to Computershare for investments in the Fund's common
shares at the then current market price. Shareholders may send an amount from
$250 to $10,000. Computershare will use these funds to purchase shares in the
open market on or about the 1st and 15th of each month. Computershare will
charge each shareholder who participates $0.75, plus a pro rata share of the
brokerage commissions. Brokerage charges for such purchases are expected to be
less than the usual brokerage charge for such transactions. It is suggested that
any voluntary cash payments be sent to Computershare, P.O. Box 43010,
Providence, RI 02940-3010 such that Computershare receives such payments
approximately 10 days before the 1st and 15th of the month. Funds not received
at least five days before the investment date shall be held for investment until
the next purchase date. A payment may be withdrawn without charge if notice is
received by Computershare at least 48 hours before such payment is to be
invested.
SHAREHOLDERS WISHING TO LIQUIDATE SHARES HELD AT COMPUTERSHARE must do so
in writing or by telephone. Please submit your request to the above mentioned
address or telephone number. Include in your request your name, address, and
account number. The cost to liquidate shares is $2.50 per transaction as well as
the brokerage commission incurred. Brokerage charges are expected to be less
than the usual brokerage charge for such transactions.
For more information regarding the Automatic Dividend Reinvestment Plan and
Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070
or by writing directly to the Fund.
The Fund reserves the right to amend or terminate the Plan as applied to
any voluntary cash payments made and any dividend or distribution paid
subsequent to written notice of the change sent to the members of the Plan at
least 90 days before the record date for such dividend or distribution. The Plan
also may be amended or terminated by Computershare on at least 90 days written
notice to participants in the Plan.
18
(FLAGS)
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL UTILITY & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER MANAGING DIRECTOR &
CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Mario d'Urso
FORMER ITALIAN SENATOR
Vincent D. Enright
FORMER SENIOR VICE PRESIDENT &
CHIEF FINANCIAL OFFICER,
KEYSPAN CORP.
Michael J. Melarkey
ATTORNEY-AT-LAW,
AVANSINO, MELARKEY, KNOBEL & MULLIGAN
Salvatore M. Salibello
CERTIFIED PUBLIC ACCOUNTANT,
SALIBELLO & BRODER LLP
Salvatore J. Zizza
CHAIRMAN, ZIZZA & CO., LTD.
OFFICERS
Bruce N. Alpert
PRESIDENT
Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
Agnes Mullady
TREASURER AND SECRETARY
David I. Schachter
VICE PRESIDENT & OMBUDSMAN
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
State Street Bank and Trust Company
COUNSEL
Skadden, Arps, Slate, Meagher & Flom, LLP
TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
STOCK EXCHANGE LISTING
Common
---------
Amex-Symbol: GLU
Shares Outstanding: 3,050,236
The Net Asset Value per share appears in the Publicly Traded Funds column, under
the heading "Specialized Equity Funds," in Monday's The Wall Street Journal. It
is also listed in Barron's Mutual Funds/Closed End Funds section under the
heading "Specialized Equity Funds."
The Net Asset Value per share may be obtained each day by calling (914) 921-5070
or visiting www.gabelli.com.
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM, or e-mail us at: closedend@gabelli.com
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may, from time to time, purchase
its shares in the open market when the Fund's shares are trading at a discount
of 10% or more from the net asset value of the shares.
THE GABELLI GLOBAL UTILITY & INCOME TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
SEMI ANNUAL REPORT
JUNE 30, 2008
GLU Q2/2008
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Schedule of Investments in securities of unaffiliated issuers as of the
close of the reporting period is included as part of the report to
shareholders filed under Item 1 of this form.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
There has been no change, as of the date of this filing, in any of the portfolio
managers identified in response to paragraph (a)(1) of this Item in the
registrant's most recently filed annual report on Form N-CSR.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
REGISTRANT PURCHASES OF EQUITY SECURITIES
=============================================================================================================================
(C) TOTAL NUMBER OF (D) MAXIMUM NUMBER (OR
SHARES (OR UNITS) APPROXIMATE DOLLAR VALUE) OF
(A) TOTAL NUMBER OF PURCHASED AS PART OF SHARES (OR UNITS) THAT MAY YET
SHARES (OR UNITS) (B) AVERAGE PRICE PAID PUBLICLY ANNOUNCED PLANS BE PURCHASED UNDER THE PLANS
PERIOD PURCHASED PER SHARE (OR UNIT) OR PROGRAMS OR PROGRAMS
=============================================================================================================================
=============================================================================================================================
Month #1 Common - N/A Common - N/A Common - N/A Common - 3,050,236
01/01/08
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
01/31/08
=============================================================================================================================
Month #2 Common - N/A Common - N/A Common - N/A Common - 3,050,236
02/01/08
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
02/28/08
=============================================================================================================================
Month #3 Common - N/A Common - N/A Common - N/A Common - 3,050,236
03/01/08
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
03/31/08
=============================================================================================================================
Month #4 Common - N/A Common - N/A Common - N/A Common - 3,050,236
04/01/08
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
04/30/08
=============================================================================================================================
Month #5 Common - N/A Common - N/A Common - N/A Common - 3,050,236
05/01/08
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
05/31/08
=============================================================================================================================
Month #6 Common - N/A Common - N/A Common - N/A Common - 3,050,236
06/01/08
through Preferred - N/A Preferred - N/A Preferred - N/A Preferred - N/A
06/30/08
=============================================================================================================================
Total Common - N/A Common - N/A Common - N/A N/A
Preferred - N/A Preferred - N/A Preferred - N/A
=============================================================================================================================
Footnote columns (c) and (d) of the table, by disclosing the following
information in the aggregate for all plans or programs publicly announced:
a. The date each plan or program was announced - The notice of the potential
repurchase of common and preferred shares occurs quarterly in the Fund's
quarterly report in accordance with Section 23(c) of the Investment Company
Act of 1940, as amended.
b. The dollar amount (or share or unit amount) approved - Any or all common
shares outstanding may be repurchased when the Fund's common shares are
trading at a discount of 10% or more from the net asset value of the
shares. Any or all preferred shares outstanding may be repurchased when the
Fund's preferred shares are trading at a discount to the liquidation value
of $25.00.
c. The expiration date (if any) of each plan or program - The Fund's
repurchase plans are ongoing.
d. Each plan or program that has expired during the period covered by the
table - The Fund's repurchase plans are ongoing.
e. Each plan or program the registrant has determined to terminate prior to
expiration, or under which the registrant does not intend to make further
purchases. - The Fund's repurchase plans are ongoing.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Trustees, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Gabelli Global Utility & Income Trust
-------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 9/3/08
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 9/3/08
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date 9/3/08
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.