UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
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: September 30, 2008
Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q 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 the
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. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
(THE GABELLI LOGO)
GLOBAL UTILITY & INCOME TRUST
THE GABELLI GLOBAL UTILITY & INCOME TRUST
Third Quarter Report
September 30, 2008
TO OUR SHAREHOLDERS,
The Gabelli Global Utility & Income Trust's (the "Fund") net asset value
("NAV") declined 8.41% in the third quarter of 2008, compared with a loss of
18.01% for the Standard & Poor's ("S&P") Utilities Index and a decline of 20.34%
for the Lipper Utility Fund Average. The Fund's market price, adjusted for
distributions, was down 17.34% during the past quarter. As of September 30,
2008, the Fund's market price was $16.90 on the American Stock Exchange,
representing a discount of 18.87% to its NAV of $20.83 at the end of the
quarter.
Enclosed is the investment portfolio as of September 30, 2008.
COMPARATIVE RESULTS
AVERAGE ANNUAL RETURNS THROUGH SEPTEMBER 30, 2008 (a)
Since
Inception
Quarter 1 Year 3 Year (05/28/04)
------- ------- ------ ----------
GABELLI GLOBAL UTILITY & INCOME TRUST
NAV TOTAL RETURN (b) ................. (8.41)% (12.47)% 4.57% 8.19%
INVESTMENT TOTAL RETURN (c) .......... (17.34) (17.84) 1.11 2.65
S&P 500 Index ........................... (8.36) (21.96) 0.22 2.86
S&P 500 Utilities Index ................. (18.01) (14.25) 2.86 12.00
Lipper Utility Fund Average ............. (20.34) (19.81) 2.78 10.73
(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 OF 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.
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2008 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS -- 91.3%
ENERGY AND UTILITIES -- 68.3%
ENERGY AND UTILITIES: ALTERNATIVE ENERGY -- 0.2%
U.S. COMPANIES
3,000 Ormat Technologies Inc. ................................ $ 108,990
-----------
ENERGY AND UTILITIES:
ELECTRIC TRANSMISSION AND DISTRIBUTION -- 5.8%
NON U.S. COMPANIES
8,775 National Grid plc, ADR ................................. 563,531
1,500 Red Electrica Corporacion SA ........................... 75,704
U.S. COMPANIES
4,900 CH Energy Group Inc. ................................... 213,493
2,000 Consolidated Edison Inc. ............................... 85,920
5,000 Northeast Utilities .................................... 128,250
50,000 NSTAR .................................................. 1,675,000
40,000 Pepco Holdings Inc. .................................... 916,400
1,666 UIL Holdings Corp. ..................................... 57,194
-----------
3,715,492
-----------
ENERGY AND UTILITIES: INTEGRATED -- 44.6%
NON U.S. COMPANIES
150,000 A2A SpA ................................................ 379,260
500 Areva SA ............................................... 383,399
8,000 Chubu Electric Power Co. Inc. .......................... 186,921
152,000 Datang International Power Generation Co. Ltd., Cl. H .. 83,000
3,000 E.ON AG ................................................ 150,268
9,000 E.ON AG, ADR ........................................... 453,843
10,000 Electric Power Development Co. Ltd. .................... 318,744
45,000 Enel SpA ............................................... 373,136
9,760 Energias de Portugal SA, ADR ........................... 402,919
29,000 Enersis SA, ADR ........................................ 473,280
138,000 Hera SpA ............................................... 377,478
10,000 Hokkaido Electric Power Co. Inc. ....................... 206,854
10,000 Hokuriku Electric Power Co. ............................ 239,293
12,000 Huaneng Power International Inc., ADR .................. 319,440
75,000 Iberdrola SA ........................................... 753,875
12,000 Iberdrola SA, ADR ...................................... 481,403
2,000 International Power plc ................................ 12,863
7,000 Korea Electric Power Corp., ADR ........................ 86,730
10,000 Kyushu Electric Power Co. Inc. ......................... 206,854
4,500 Oesterreichische Elektrizitaetswirtschafts AG, Cl. A ... 273,359
10,000 Shikoku Electric Power Co. Inc. ........................ 250,106
10,000 The Chugoku Electric Power Co. Inc. .................... 204,504
16,000 The Kansai Electric Power Co. Inc. ..................... 353,533
10,000 The Tokyo Electric Power Co. Inc. ...................... 243,524
10,000 Tohoku Electric Power Co. Inc. ......................... 213,906
MARKET
SHARES VALUE
---------- -----------
U.S. COMPANIES
1,000 Allegheny Energy Inc. .................................. $ 36,770
2,000 ALLETE Inc. ............................................ 89,000
19,000 Ameren Corp. ........................................... 741,570
30,000 American Electric Power Co. Inc. ....................... 1,110,900
1,000 Avista Corp. ........................................... 21,710
6,000 Black Hills Corp. ...................................... 186,420
500 Cleco Corp. ............................................ 12,625
500 CMS Energy Corp. ....................................... 6,235
7,000 Dominion Resources Inc. ................................ 299,460
60,000 DPL Inc. ............................................... 1,488,000
40,000 Duke Energy Corp. ...................................... 697,200
4,000 El Paso Electric Co.+ .................................. 84,000
10,000 Florida Public Utilities Co. ........................... 129,000
14,000 FPL Group Inc. ......................................... 704,200
60,034 Great Plains Energy Inc. ............................... 1,333,955
26,000 Hawaiian Electric Industries Inc. ...................... 756,860
29,500 Integrys Energy Group Inc. ............................. 1,473,230
7,000 Maine & Maritimes Corp.+ ............................... 230,650
15,000 MGE Energy Inc. ........................................ 533,250
44,000 NiSource Inc. .......................................... 649,440
13,000 NorthWestern Corp. ..................................... 326,690
19,500 OGE Energy Corp. ....................................... 602,160
6,000 Otter Tail Corp. ....................................... 184,380
1,000 PG&E Corp. ............................................. 37,450
16,000 Pinnacle West Capital Corp. ............................ 550,560
4,200 PPL Corp. .............................................. 155,484
31,000 Progress Energy Inc. ................................... 1,337,030
32,000 Public Service Enterprise Group Inc. ................... 1,049,280
25,000 Puget Energy Inc. ...................................... 667,500
18,000 SCANA Corp. ............................................ 700,740
45,000 Southern Co. ........................................... 1,696,050
1,000 TECO Energy Inc. ....................................... 15,730
2,000 The AES Corp.+ ......................................... 23,380
1,250 The Empire District Electric Co. ....................... 26,688
15,000 Unisource Energy Corp. ................................. 437,850
17,000 Vectren Corp. .......................................... 473,450
41,000 Westar Energy Inc. ..................................... 944,640
5,000 Wisconsin Energy Corp. ................................. 224,500
45,000 Xcel Energy Inc. ....................................... 899,550
-----------
28,366,079
-----------
ENERGY AND UTILITIES: NATURAL GAS INTEGRATED -- 4.2%
NON U.S. COMPANIES
80,000 Snam Rete Gas SpA ...................................... 480,903
U.S. COMPANIES
25,000 El Paso Corp. .......................................... 319,000
1,000 Energen Corp. .......................................... 45,280
17,000 National Fuel Gas Co. .................................. 717,060
2,000 ONEOK Inc. ............................................. 68,800
See accompanying notes to schedule of investments.
2
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2008 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES (CONTINUED)
ENERGY AND UTILITIES: NATURAL GAS INTEGRATED (CONTINUED)
U.S. COMPANIES (CONTINUED)
15,000 Southern Union Co. ..................................... $ 309,750
30,000 Spectra Energy Corp. ................................... 714,000
-----------
2,654,793
-----------
ENERGY AND UTILITIES: NATURAL GAS UTILITIES -- 5.1%
NON U.S. COMPANIES
1,000 Enagas ................................................. 21,399
11,454 GDF Suez, ADR+ (a) ..................................... 588,895
U.S. COMPANIES
20,000 Atmos Energy Corp. ..................................... 532,400
2,000 Chesapeake Utilities Corp. ............................. 66,420
4,000 EnergySouth Inc. ....................................... 245,720
20,000 Nicor Inc. ............................................. 887,000
5,000 Piedmont Natural Gas Co. Inc. .......................... 159,800
10,000 Southwest Gas Corp. .................................... 302,600
8,500 The Laclede Group Inc. ................................. 412,165
-----------
3,216,399
-----------
ENERGY AND UTILITIES: OIL -- 2.5%
NON U.S. COMPANIES
2,000 First Calgary Petroleums Ltd.+ ......................... 6,352
500 Niko Resources Ltd. .................................... 26,878
8,000 Petroleo Brasileiro SA, ADR ............................ 351,600
9,000 Royal Dutch Shell plc, Cl. A, ADR ...................... 531,090
U.S. COMPANIES
3,000 Chevron Corp. .......................................... 247,440
2,000 ConocoPhillips ......................................... 146,500
2,000 Devon Energy Corp. ..................................... 182,400
1,000 Exxon Mobil Corp. ...................................... 77,660
-----------
1,569,920
-----------
ENERGY AND UTILITIES: SERVICES -- 0.2%
NON U.S. COMPANIES
6,000 ABB Ltd., ADR .......................................... 116,400
-----------
ENERGY AND UTILITIES: WATER -- 4.0%
NON U.S. COMPANIES
1,000 Consolidated Water Co. Ltd. ............................ 17,020
47,000 Severn Trent plc ....................................... 1,131,382
2,000 Suez SA ................................................ 97,588
7,200 Suez SA, Strips+ ....................................... 101
37,090 United Utilities Group plc ............................. 458,284
U.S. COMPANIES
8,666 Aqua America Inc. ...................................... 154,081
3,000 California Water Service Group ......................... 115,500
4,000 Middlesex Water Co. .................................... 69,880
17,000 SJW Corp. .............................................. 509,490
-----------
2,553,326
-----------
SHARES/ MARKET
UNITS VALUE
---------- -----------
DIVERSIFIED INDUSTRIAL -- 1.1%
NON U.S. COMPANIES
13,000 Bouygues SA ............................................ $ 581,068
U.S. COMPANIES
3,000 Woodward Governor Co. .................................. 105,810
-----------
686,878
-----------
ENVIRONMENTAL SERVICES -- 0.6%
NON U.S. COMPANIES
10,000 Veolia Environnement ................................... 406,360
-----------
TOTAL ENERGY AND UTILITIES ............................. 43,394,637
-----------
COMMUNICATIONS -- 17.7%
CABLE AND SATELLITE -- 6.7%
NON U.S. COMPANIES
10,000 Cogeco Inc. ............................................ 293,164
2,500 Rogers Communications Inc., Cl. B ...................... 83,100
5,400 Zon Multimedia Servicos de Telecomunicacoes e Multimedia
SGPS SA ............................................. 39,455
U.S. COMPANIES
25,000 Cablevision Systems Corp., Cl. A ....................... 629,000
17,000 DISH Network Corp., Cl. A+ ............................. 357,000
3,600 EchoStar Corp., Cl. A+ ................................. 86,760
4,580 Liberty Global Inc., Cl. A+ ............................ 138,774
4,000 Liberty Global Inc., Cl. C+ ............................ 112,360
95,000 The DIRECTV Group Inc.+ ................................ 2,486,150
-----------
4,225,763
-----------
TELECOMMUNICATIONS -- 9.8%
NON U.S. COMPANIES
2,102 Bell Aliant Regional Communications Income Fund+
(a)(b) .............................................. 52,529
26,000 BT Group plc, ADR ...................................... 754,260
32,000 Deutsche Telekom AG, ADR ............................... 487,360
6,000 France Telecom SA, ADR ................................. 168,060
3,000 Manitoba Telecom Services Inc. ......................... 110,641
22,000 Portugal Telecom SGPS SA ............................... 220,053
15,000 Royal KPN NV, ADR ...................................... 214,743
1,500 Swisscom AG ............................................ 442,315
20,000 Telecom Italia SpA ..................................... 29,620
16,000 Telefonica SA, ADR ..................................... 1,143,840
14,000 Telefonos de Mexico SAB de CV, Cl. L, ADR .............. 360,500
13,000 Telmex Internacional SAB de CV, ADR .................... 169,000
U.S. COMPANIES
31,000 AT&T Inc. .............................................. 865,520
1,000 Embarq Corp. ........................................... 40,550
See accompanying notes to schedule of investments.
3
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2008 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS (CONTINUED)
COMMUNICATIONS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
U.S. COMPANIES (CONTINUED)
471 FairPoint Communications Inc. .......................... $ 4,084
25,000 Sprint Nextel Corp. .................................... 152,500
5,000 Telephone & Data Systems Inc. .......................... 178,750
25,000 Verizon Communications Inc. ............................ 802,250
-----------
6,196,575
-----------
WIRELESS COMMUNICATIONS -- 1.2%
NON U.S. COMPANIES
1,200 America Movil SAB de CV, Cl. L, ADR .................... 55,632
5,000 Millicom International Cellular SA ..................... 343,350
1,600 Mobile TeleSystems OJSC, ADR ........................... 89,616
7,000 Vimpel-Communications, ADR ............................. 142,100
4,000 Vodafone Group plc, ADR ................................ 88,400
U.S. COMPANIES
1,500 United States Cellular Corp.+ .......................... 70,380
-----------
789,478
-----------
TOTAL COMMUNICATIONS ................................... 11,211,816
-----------
OTHER -- 5.3%
AEROSPACE -- 0.7%
NON U.S. COMPANIES
74,000 Rolls-Royce Group plc+ ................................. 442,700
-----------
BUILDING AND CONSTRUCTION -- 0.5%
NON U.S. COMPANIES
2,000 Acciona SA ............................................. 299,298
-----------
BUSINESS SERVICES -- 0.1%
NON U.S. COMPANIES
3,700 Sistema JSFC, GDR ...................................... 60,384
-----------
COMPUTER SOFTWARE AND SERVICES -- 0.0%
U.S. COMPANIES
300 Captaris Inc.+ ......................................... 1,383
-----------
ENTERTAINMENT -- 0.5%
NON U.S. COMPANIES
10,000 Vivendi ................................................ 309,997
-----------
FOOD AND BEVERAGE -- 2.5%
U.S. COMPANIES
20,000 Wm. Wrigley Jr. Co. .................................... 1,588,000
-----------
MARKET
SHARES VALUE
---------- -----------
HEALTH CARE -- 0.5%
U.S. COMPANIES
10,000 Sciele Pharma Inc.+ .................................... $ 307,900
-----------
MACHINERY -- 0.1%
U.S. COMPANIES
1,000 Gehl Co.+ .............................................. 29,430
-----------
METALS AND MINING -- 0.2%
NON U.S. COMPANIES
6,400 Compania de Minas Buenaventura SA, ADR ................. 150,272
-----------
REAL ESTATE -- 0.1%
NON U.S. COMPANIES
3,000 Brookfield Asset Management Inc., Cl. A ................ 82,320
-----------
SPECIALTY CHEMICALS -- 0.0%
U.S. COMPANIES
300 Nevada Chemicals Inc. .................................. 3,954
-----------
TRANSPORTATION -- 0.1%
U.S. COMPANIES
2,000 GATX Corp. ............................................. 79,140
-----------
TOTAL OTHER ............................................ 3,354,778
-----------
TOTAL COMMON STOCKS .................................... 57,961,231
-----------
CONVERTIBLE PREFERRED STOCKS -- 0.1%
COMMUNICATIONS -- 0.0%
TELECOMMUNICATIONS -- 0.0%
U.S. COMPANIES
500 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B ............................. 17,275
-----------
OTHER -- 0.1%
TRANSPORTATION -- 0.1%
U.S. COMPANIES
200 GATX Corp., $2.50 Cv. Pfd. ............................. 41,702
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS ..................... 58,977
-----------
RIGHTS -- 0.0%
ENERGY AND UTILITIES -- 0.0%
ENVIRONMENTAL SERVICES -- 0.0%
2,000 Suez Environnement SA+ ................................. 12,642
-----------
See accompanying notes to schedule of investments.
4
THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2008 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
CONVERTIBLE CORPORATE BONDS -- 0.5%
COMMUNICATIONS -- 0.2%
COMMUNICATIONS EQUIPMENT -- 0.2%
U.S. COMPANIES
$ 100,000 Agere Systems Inc., Sub. Deb. Cv.,
6.500%, 12/15/09..................................... $ 101,500
-----------
OTHER -- 0.3%
REAL ESTATE -- 0.3%
U.S. COMPANIES
350,000 Palm Harbor Homes Inc., Cv.,
3.250%, 05/15/24..................................... 211,313
-----------
TOTAL CONVERTIBLE CORPORATE BONDS....................... 312,813
-----------
U.S. GOVERNMENT OBLIGATIONS -- 8.1%
U.S. TREASURY BILLS -- 6.3%
3,990,000 U.S. Treasury Bills,
1.353% to 1.721%++,
10/09/08 to 11/28/08................................. 3,985,802
-----------
U.S. TREASURY NOTES -- 1.8%
1,150,000 4.500%, 04/30/09..................................... 1,168,958
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS....................... 5,154,760
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $57,328,193)................................................ $63,500,423
===========
Aggregate book cost..................................... $57,328,193
===========
Gross unrealized appreciation........................... $ 9,149,594
Gross unrealized depreciation........................... (2,977,364)
-----------
Net unrealized appreciation/(depreciation).............. $ 6,172,230
===========
----------
(a) Security fair valued under procedures established by the Board of Trustees.
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 September 30, 2008, the market value of fair
valued securities amounted to $641,424 or 1.01% of total investments.
(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. At September 30,
2008, the market value of the Rule 144A security amounted to $52,529 or
0.08% 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 ............ 70.3% $44,627,009
Europe ................... 22.6 14,382,701
Japan .................... 3.8 2,424,239
Latin America ............ 2.5 1,577,304
Asia/Pacific ............. 0.8 489,170
----- -----------
Total Investments ........ 100.0% $63,500,423
===== ===========
See accompanying notes to schedule of investments.
5
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
1. 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
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.
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 September 30, 2008
is as follows:
INVESTMENTS IN OTHER FINANCIAL
SECURITIES INSTRUMENTS (UNREALIZED
VALUATION INPUTS (MARKET VALUE) DEPRECIATION)*
---------------- -------------- -----------------------
Level 1 - Quoted Prices $57,443,956 --
Level 2 - Other Significant Observable Inputs 6,056,467 $(41,912)
----------- --------
Total $63,500,423 $(41,912)
=========== ========
----------
* 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.
6
THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (CONTINUED) (UNAUDITED)
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.
2. 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.
The Fund has entered into a contract for difference swap agreement with Bear,
Stearns International Limited. Details of the swap at September 30, 2008 are as
follows:
NOTIONAL EQUITY SECURITY INTEREST RATE/ TERMINATION NET UNREALIZED
AMOUNT RECEIVED EQUITY SECURITY PAID DATE DEPRECIATION
------------------------ --------------------- ------------------------ ----------- --------------
Overnight LIBOR plus
Market Value 40 bps plus Market Value
Appreciation on: Depreciation on:
$340,849 (50,000 Shares) Rolls-Royce Group plc Rolls-Royce Group plc 03/17/09 $(41,912)
3. TAX INFORMATION. Under the current tax law, capital and currency losses
realized after October 31 and prior to the Fund's fiscal year end may be
deferred as occurring on the first day of the following fiscal year. Post
October capital losses at the fiscal year ended December 31, 2007 were $10,785.
7
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.
8
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.
9
THE GABELLI GLOBAL UTILITY & INCOME TRUST
AND YOUR PERSONAL PRIVACY
WHO ARE WE?
The Gabelli Global Utility & Income Trust (the "Fund") is a closed-end
management investment company registered with the Securities and Exchange
Commission under the Investment Company Act of 1940. We are managed by Gabelli
Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc.
is a publicly held company that has subsidiaries that provide investment
advisory or brokerage services for a variety of clients.
WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A
SHAREHOLDER?
When you purchase shares of the Fund on the New York Stock Exchange, you have
the option of registering directly with our transfer agent in order, for
example, to participate in our dividend reinvestment plan.
- INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could include your
name, address, telephone number, social security number, bank account
number, and other information.
- INFORMATION ABOUT YOUR TRANSACTIONS WITH US. This would include information
about the shares that you buy or sell; it may also include information
about whether you sell or exercise rights that we have issued from time to
time. If we hire someone else to provide services--like a transfer
agent--we will also have information about the transactions that you
conduct through them.
WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
We do not disclose any non-public personal information about our customers or
former customers to anyone other than our affiliates, our service providers who
need to know such information, and as otherwise permitted by law. If you want to
find out what the law permits, you can read the privacy rules adopted by the
Securities and Exchange Commission. They are in volume 17 of the Code of Federal
Regulations, Part 248. The Commission often posts information about its
regulations on its website, WWW.SEC.GOV.
WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
We restrict access to non-public personal information about you to the people
who need to know that information in order to provide services to you or the
Fund and to ensure that we are complying with the laws governing the securities
business. We maintain physical, electronic, and procedural safeguards to keep
your personal information confidential.
(GRAPHIC)
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.
(GRAPHIC)
THE GABELLI GLOBAL UTILITY & INCOME TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
THIRD QUARTER REPORT
SEPTEMBER 30, 2008
GLU Q3/2008
ITEM 2. 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 last
fiscal quarter that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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 November 24, 2008
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date November 24, 2008
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date November 24, 2008
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.