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, 2021

 

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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

 

 

Item 1. Reports to Stockholders.

 

(a) The Report to Shareholders is attached herewith.

 

 

 

 

The Gabelli Global Utility & Income Trust

Semiannual Report June 30, 2021

 

(Y)our Portfolio Management Team

 

Mario J. Gabelli, CFA Timothy M. Winter, CFA Hendi Susanto
Chief Investment Officer Portfolio Manager Portfolio Manager
  BA, Rollins College BS, University of Minnesota
  MBA, University of MS, Massachusetts
  Notre Dame Institute of Technology
    MBA, Wharton School,
    University of Pennsylvania

 

To Our Shareholders,

 

For the six months ended June 30, 2021, the net asset value (NAV) total return of The Gabelli Global Utility & Income Trust (the Fund) was 11.2%, compared with a total return of 2.4% for the Standard & Poor’s (S&P) 500 Utilities Index. The total return for the Fund’s publicly traded shares was 16.9%. The Fund’s NAV per share was $21.03, while the price of the publicly traded shares closed at $20.90 on the NYSE American. See page 2 for additional performance information.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2021.

  

 

 

 

 

 

 

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

 

 

 

Comparative Results

 

 

Average Annual Returns through June 30, 2021 (a) (Unaudited)  
                                  Since
    Year to                           Inception
    Date     1 Year     5 year     10 year     15 year     (5 /28/04)
The Gabelli Global Utility & Income Trust (GLU)                                                
NAV Total Return (b)     11.16 %     40.13 %     6.13 %     6.59 %     6.52 %     7.23 %
Investment Total Return (c)     16.91       40.97       9.99       7.49       8.18       7.47  
S&P 500 Utilities Index     2.38       15.77       7.41       10.56       8.61       10.03  
Lipper Utility Fund Average     3.85       18.04       6.84       8.80       7.83       9.40  
S&P Global 1200 Utilities Index     0.52       15.28       7.93       7.17       6.02       8.22  

 

(a) Performance returns for periods of less than one year are not annualized. 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 mutual funds classified in this particular category. The S&P Global 1200 Utilities Index is an unmanaged indicator of electric and gas utility stock performance. 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, reinvestment of distributions at NAV on the ex-dividend date, and adjustments for the rights offering 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 NYSE American, reinvestment of distributions, and adjustments for the rights offering. Since inception return is based on an initial offering price of $20.00.

 

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing.

 

Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. The Fund's use of leverage may magnify the volatility of net asset value changes versus funds that do not employ leverage. 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.

 

 

2

 

 

Summary of Portfolio Holdings (Unaudited)

 

The following tables present portfolio holdings as a percent of net assets as of June 30, 2021:

 

The Gabelli Global Utility & Income Trust

 

Energy and Utilities: Integrated     21.8 %   Wireless Communications     1.7 %
U.S. Government Obligations     14.2 %   Business Services     1.6 %
Telecommunications     9.4 %   Building and Construction     1.4 %
Cable and Satellite     6.0 %   Automotive     1.1 %
Food and Beverage     5.1 %   Hotels and Gaming     1.0 %
Financial Services     4.3 %   Computer Software and Services     0.9 %
Alternative Energy     3.5 %   Consumer Services     0.6 %
Diversified Industrial     2.8 %   Oil     0.6 %
Natural Gas Integrated     2.5 %   Health Care     0.4 %
Services     2.5 %   Aerospace     0.4 %
Consumer Products     2.5 %   Natural Resources     0.3 %
Electric Transmission and Distribution     2.5 %   Environmental Services     0.3 %
Natural Gas Utilities     2.4 %   Transportation     0.2 %
Entertainment     2.4 %   Independent Power Producers and Energy        
Machinery     2.0 %   Traders     0.2 %
Water     1.8 %   Closed-End Funds     0.1 %
Electronics     1.8 %         100.0 %
Specialty Chemicals     1.7 %            

 

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-PORT. 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-PORT 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 800-SEC-0330.

 

Proxy Voting

 

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how each 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.

 

3

 

 

The Gabelli Global Utility & Income Trust

Schedule of Investments — June 30, 2021 (Unaudited)

 

 

                Market  
Shares         Cost     Value  
      COMMON STOCKS — 85.7%            
        ENERGY AND UTILITIES — 40.1%                
        Alternative Energy — 3.5%                
        Non U.S. Companies                
  1,950     Brookfield Renewable Corp., Cl. A   $ 55,559     $ 81,783  
   68,000     Siemens Gamesa Renewable Energy SA†.     1,143,018       2,270,569  
  8,500     Vestas Wind Systems A/S     169,142       331,800  
        U.S. Companies                
  36,814     NextEra Energy Partners LP     1,386,774       2,811,117  
  7,500     Ormat Technologies Inc.     353,159       521,475  
  450     SolarEdge Technologies  Inc.†     47,095       124,366  
              3,154,747       6,141,110  
        Diversified Industrial — 1.8%                
        Non U.S. Companies                
  16,000     Bouygues SA     562,608       591,737  
   18,000     Jardine Matheson Holdings Ltd.     990,847       1,150,560  
        U.S. Companies                
  29,000     Flowserve Corp.     971,129       1,169,280  
  22,000     General Electric Co.     205,972       296,120  
  4,500     Mueller Water Products Inc., Cl. A     44,106       64,890  
              2,774,662       3,272,587  
        Electric Transmission and Distribution — 2.5%                
        Non U.S. Companies                
  8,500     Algonquin Power & Utilities Corp.     66,376       126,650  
  1,700     Boralex Inc., Cl. A     34,193       51,771  
  28,000     Enel Chile SA, ADR     78,326       82,600  
  1,000     Equatorial Energia SA     6,061       5,002  
  12,000     Fortis Inc.     380,825       531,171  
  1,250     Fortis Inc.     52,024       55,288  
  8,600     Landis+Gyr Group AG     561,703       600,443  
  1,100     Orsted AS     111,506       154,355  
  20,000     Red Electrica Corp. SA     227,553       371,258  
        U.S. Companies                
  2,400     Consolidated Edison Inc.     109,137       172,128  
  350     Sempra Energy     52,206       46,368  
  30,000     Twin Disc Inc.†     288,921       426,900  
  6,000     Unitil Corp.     242,734       317,820  
  16,300     WEC Energy Group Inc.     663,688       1,449,885  
              2,875,253       4,391,639  
        Energy and Utilities: Integrated — 21.8%                
        Non U.S. Companies                
  140,000     A2A SpA     257,158       286,193  
                Market  
Shares         Cost     Value  
  10,000     Chubu Electric Power Co. Inc.   $ 149,071     $ 122,238  
  152,000      Datang International Power Generation Co. Ltd., Cl. H     59,610       25,450  
  2,000     E.ON SE     20,087       23,131  
  14,000     E.ON SE, ADR     162,822       162,750  
  20,615      EDP - Energias de Portugal SA     83,630       109,266  
  9,000      EDP - Energias de Portugal SA, ADR     241,083       480,240  
  15,000      Electric Power Development Co. Ltd.     327,135       214,006  
  35,000     Emera Inc.     1,395,278       1,587,931  
  8,500     Endesa SA     198,665       206,214  
  28,000     Enel Americas SA, ADR     88,325       202,160  
  157,000     Enel SpA     938,513       1,458,027  
  4,000     Eni SpA     66,742       48,710  
  6,000     Eni SpA, ADR     167,606       146,340  
  230,000     Hera SpA     479,975       950,165  
  12,000      Hokkaido Electric Power Co. Inc.     106,603       54,332  
  20,000     Hokuriku Electric Power Co.     210,929       109,096  
  14,000      Huaneng Power International Inc., ADR     389,439       222,040  
  216,600     Iberdrola SA     1,682,161       2,640,248  
  1,800      Innergex Renewable Energy Inc.     25,131       31,292  
  36,000     Korea Electric Power Corp., ADR     414,505       388,800  
  25,000     Kyushu Electric Power Co. Inc.     322,271       192,403  
  12,000     Shikoku Electric Power Co. Inc.     132,963        81,660   
  15,000     The Chugoku Electric Power Co. Inc.     218,583       136,910  
  14,000     The Kansai Electric Power  Co. Inc.     162,292       133,516   
  7,000      Tohoku Electric Power Co. Inc.     102,133       54,818  
  100     Uniper SE     1,124       3,683  
  2,000     Verbund AG     33,429       184,147  
                         
      U.S. Companies            
  2,000     ALLETE Inc.     71,269       139,960  
  1,400     Alliant Energy Corp.     76,524       78,064  
  18,500     Ameren Corp.     721,946       1,480,740  
  25,000      American Electric Power Co. Inc.     2,082,289       2,114,750  
  17,600     Avangrid Inc.     835,370       905,168  
  18,000     Avista Corp.     683,180       768,060  
  600     Black Hills Corp.     15,133       39,378  
  500     CMS Energy Corp.     31,314       29,540  


See accompanying notes to financial statements.

 

4

 

 

The Gabelli Global Utility & Income Trust 

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

                Market  
Shares         Cost     Value  
      COMMON STOCKS (Continued)            
      ENERGY AND UTILITIES (Continued)      
        Energy and Utilities: Integrated (Continued)                
        U.S. Companies (Continued)                
  10,500     Dominion Energy Inc.   $ 440,477     $ 772,485  
  1,000     DTE Energy Co.     122,992       129,600  
  10,700     Duke Energy Corp.     498,621       1,056,304  
  500     Entergy Corp.     58,141       49,850  
  2,000     Eos Energy Enterprises  Inc.†     21,190       35,920  
  17,500     Evergy Inc.     956,639       1,057,525  
  20,700     Eversource Energy     1,074,732       1,660,968  
  100     FirstEnergy Corp.     2,662       3,721  
  380,000     Gulf Coast Ultra Deep Royalty Trust     9,538       9,500  
  16,000     Hawaiian Electric Industries Inc.     419,560       676,480  
  300     IDACORP Inc.     24,834       29,250  
  10,000     MGE Energy Inc.     221,453       744,400  
  21,200     NextEra Energy Inc.     393,398       1,553,536  
  36,000     NiSource Inc.     282,621       882,000  
  11,000     NorthWestern Corp.     336,011       662,420  
  35,000     OGE Energy Corp.     432,547       1,177,750  
  14,000     Otter Tail Corp.     391,637       683,340  
  13,500     PG&E Corp.†     123,043       137,295  
  14,000     Pinnacle West Capital Corp.     674,487       1,147,580  
  35,000     PNM Resources Inc.     1,712,758       1,706,950  
  40,500     Portland General Electric Co.     1,673,456       1,866,240  
  9,900     PPL Corp.     291,587       276,903  
  15,000     Public Service Enterprise Group Inc.     499,650       896,100  
  121,500     The AES Corp.     1,604,649       3,167,505  
  19,000     The Southern Co.     597,707       1,149,690  
  18,500     Xcel Energy Inc.     341,939       1,218,780  
              26,160,617       38,563,518  
                         
        Environmental Services — 0.3%                
        Non U.S. Companies                
  2,500     Cia de Saneamento Basico do Estado de Sao Paulo, ADR     37,424       18,500  
  900     Pentair plc.     31,673       60,741  
  2,500     Suez SA†     32,816       59,436  
  13,000     Veolia Environnement SA     213,867       392,613  
                         
        U.S. Companies                
  300     Tetra Tech Inc.     26,336       36,612  
              342,116       567,902  
                Market  
Shares         Cost     Value  
        Independent Power Producers and Energy Traders — 0.1%                
        Non U.S. Companies                
  3,000     Atlantica Sustainable  Infrastructure plc   $ 81,239     $ 111,660  
                         
        Natural Gas Integrated — 2.5%                
        Non U.S. Companies                
  80,000     Snam SpA     288,733       462,443  
  1,100     TC Energy Corp.     57,893       54,472  
                         
        U.S. Companies                
  30,000     Kinder Morgan Inc.     449,682       546,900  
  61,000     National Fuel Gas Co.     2,801,353       3,187,250  
  4,000     ONEOK Inc.     7,401       222,560  
              3,605,062       4,473,625  
        Natural Gas Utilities — 2.4%                
        Non U.S. Companies                
  1,500     Enagas SA     37,053       34,656  
  1,000     Engie SA     15,461       13,700  
  9,800     Engie SA, ADR     245,743       135,240  
  16,000     Italgas SpA     72,388       104,574  
  101,000     National Grid plc     1,201,440       1,286,480  
  15,700     National Grid plc, ADR     982,056       1,003,858  
                         
        U.S. Companies                
  6,000     Atmos Energy Corp.     148,311       576,660  
  1,700     Chesapeake Utilities Corp.     47,855       204,561  
  1,300     ONE Gas Inc.     32,391       96,356  
  10,000     Southwest Gas Holdings  Inc.     381,768       661,900  
  2,000     Spire Inc.     70,415       144,540  
              3,234,881       4,262,525  
        Natural Resources — 0.3%                
        Non U.S. Companies                
  12,000     Cameco Corp.     119,302       230,160  
  200     Linde plc.     42,364       57,820  
        U.S. Companies     64,285       86,520  
  4,000     APA Corp.                
  2,000     Diamondback Energy Inc.     77,805       187,780  
              303,756       562,280  
        Oil — 0.6%                
        Non U.S. Companies                
  14,000     BP plc, ADR     447,292       369,880  
  3,000     PetroChina Co. Ltd., ADR     123,789       147,090  
  10,000     Petroleo Brasileiro SA, ADR     83,744       122,300  
  8,000     Royal Dutch Shell plc, Cl. A, ADR     332,634       323,200  
                         
        U.S. Companies                
  1,000     ConocoPhillips     28,509       60,900  
              1,015,968       1,023,370  


 

See accompanying notes to financial statements.

 

5

 

 

The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

Shares         Cost     Market
Value
 
      COMMON STOCKS (Continued)            
        ENERGY AND UTILITIES (Continued)                
        Services — 2.5%                
        Non U.S. Companies                
  1,000     ABB Ltd.   $ 23,096     $ 33,926  
  35,000     ABB Ltd., ADR     701,409       1,189,650  
  23,000     Enbridge Inc.     485,412       920,920  
  5,726     First Sensor AG     181,141       289,916  
                         
        U.S. Companies                
  29,500     AZZ Inc.     1,095,352       1,527,510  
  20,000     Halliburton Co.     344,278       462,400  
              2,830,688       4,424,322  
                         
        Water — 1.8%                
        Non U.S. Companies                
  1,500     Cia de Saneamento de Minas Gerais-COPASA     8,100       4,656  
  5,000     Consolidated Water Co. Ltd.     60,554       58,650  
  2,000     Fluidra SA     24,136       79,327  
  34,000     Severn Trent plc     893,655       1,176,275  
  35,000     United Utilities Group plc     346,011       471,761  
                         
        U.S. Companies                
  500     Artesian Resources Corp., Cl. A     18,961       18,385  
  5,400     California Water Service Group     76,295       299,916  
  8,000     Essential Utilities Inc.     95,796       365,600  
  40,000     Fluence Corp. Ltd.†     9,946       5,700  
  4,000     Middlesex Water Co.     75,033       326,920  
  7,000     SJW Group     164,996       443,100  
              1,773,483       3,250,290  
                         
        TOTAL ENERGY AND UTILITIES     48,152,472       71,044,828  
        .                
        OTHER — 28.4%                
        Aerospace — 0.4%                
        Non U.S. Companies                
  100,000     Rolls-Royce Holdings plc†     174,576       136,836  
                         
        U.S. Companies                
  12,000     AAR Corp.†     338,309       465,000  
              512,885       601,836  
        Automotive — 1.1%                
        Non U.S. Companies                
  350     Ferrari NV     13,358       72,117  
  8,000     Traton SE     253,975       253,656  
                         
        U.S. Companies                
  38,000     Navistar International Corp.†     1,684,300       1,691,000  
              1,951,633       2,016,773  
                Market  
Shares         Cost     Value  
        Building and Construction — 1.4%                
        Non U.S. Companies                
  500     Acciona SA   $ 25,414     $ 75,473  
  1,700     Sika AG     256,442       555,796  
  27,000     Vantage Towers AG†     781,267       869,534  
                         
        U.S. Companies                
  4,000     Arcosa Inc.     101,624       234,960  
  10,000     US Concrete Inc.†     738,400       738,000  
              1,903,147       2,473,763  
                         
        Business Services — 1.6%                
        Non U.S. Companies                
  46,000     JCDecaux SA†     1,280,366       1,275,250  
  140,000     Sistema PJSC FC, GDR     474,533       1,204,000  
                         
        U.S. Companies                
  10,000     Diebold Nixdorf Inc.†     93,138       128,400  
  7,500     Macquarie Infrastructure Corp.     219,745       287,025  
              2,067,782       2,894,675  
                         
        Computer Software and Services — 0.9%                
        Non U.S. Companies                
  3,600     Prosus NV     354,116       352,040  
  2,000     Tencent Holdings Ltd.     86,904       150,432  
                         
        U.S. Companies                
  2,200     Global Payments Inc.     326,193       412,588  
  10,500     Talend SA, ADR†     686,073       688,800  
              1,453,286       1,603,860  
                         
        Consumer Products — 2.5%                
        Non U.S. Companies                
  16,000     Essity AB, Cl. B     478,025       530,585  
  500     Ferguson plc     44,684       69,511  
  1,500     Salvatore Ferragamo SpA†     24,778       32,095  
  5,000     Scandinavian Tobacco Group A/S     59,584       102,053  
  430,000     Swedish Match AB     1,859,335       3,666,865  
              2,466,406       4,401,109  
                         
        Consumer Services — 0.6%                
        U.S. Companies                
  30,000     Matthews International Corp., Cl. A     758,823       1,078,800  
                         
        Diversified Industrial— 1.0%                
        Non U.S. Companies                
  46,000     Ardagh Group SA     781,996       1,127,920  
  600     Sulzer AG     61,528       82,875  
                         
        U.S. Companies                
  23,000     Trinity Industries Inc.     477,055       618,470  
              1,320,579       1,829,265  


See accompanying notes to financial statements.

 

6

 

 

The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

 

                Market  
Shares         Cost     Value  
        COMMON STOCKS (Continued)                
        OTHER (Continued)                
        Electronics — 1.8%                
        Non U.S. Companies                
  7,000     Kyocera Corp.   $ 423,529     $ 432,747  
  1,000     Signify NV     34,849       63,248  
  26,000     Sony Group Corp., ADR     1,019,964       2,527,720  
                         
        U.S. Companies                
  400     Hubbell Inc.     58,570       74,736  
              1,536,912       3,098,451  
        Entertainment — 2.4%                
        Non U.S. Companies                
  95,000     Grupo Televisa SAB, ADR     1,030,837       1,356,600  
  24,000     Manchester United plc, Cl. A     422,430       364,560  
  2,000     Naspers Ltd., Cl. N     447,122       419,915  
  44,000     Vivendi SE     1,168,651       1,478,061  
                         
        U.S. Companies                
  16,000     Fox Corp., Cl. B     521,550       563,200  
              3,590,590       4,182,336  
        Financial Services — 4.3%                
        Non U.S. Companies                
  4,500     Brookfield Asset  Management Inc., Cl. A     30,437       229,410  
  31     Brookfield Asset Management Reinsurance Partners Ltd., Cl. A†     1,643       1,613  
  55,000     Commerzbank AG†     292,033       390,124  
  50,000     Credit Suisse Group AG     628,044       523,750  
  20,000     Credit Suisse Group AG, ADR     239,733       209,800  
  8,000     Deutsche Bank AG†     59,019       104,640  
  65,000     GAM Holding AG†     266,359       141,205  
  15,000     Janus Henderson Group plc     327,472       582,150  
  10,000     Kinnevik AB, Cl. A     264,223       452,904  
  135,000     Orascom Financial Holding  SAE†     17,937       2,563  
  100,000     Resona Holdings Inc.     498,028       384,536  
  30,000     UBS Group AG     352,414       460,200  
  30,000     UBS Group AG     355,170       459,119  
                         
        U.S. Companies                
  7,500     AllianceBernstein Holding LP     173,775       349,200  
  20,000     Bank of America Corp.     513,699       824,600  
  500     M&T Bank Corp.     56,274       72,655  
  15,000     The Bank of New York Mellon Corp.     599,004       768,450  
  1,600     The Goldman Sachs Group  Inc.     266,174       607,248  
  17,900     UGI Corp.     760,582       828,949  
                Market  
Shares         Cost     Value  
  4,000     Wells Fargo & Co.   $ 112,788     $ 181,160  
              5,814,808       7,574,276  
        Food and Beverage — 5.1%                
        Non U.S. Companies                
  110     Chocoladefabriken Lindt & Spruengli AG                
  3,000     Chr. Hansen Holding A/S     114,931       270,759  
  45,000     Davide Campari-Milano NV     215,405       602,687  
  7,500     Diageo plc, ADR     844,336       1,437,675  
  5,000     Fomento Economico  Mexicano SAB de CV, ADR     394,102       422,550  
  6,500     Heineken NV     461,123       787,694  
  700     Kerry Group plc, Cl. A     83,898       97,196  
  3,000     Kikkoman Corp.     148,209       197,939  
  55,000     Maple Leaf Foods Inc.     1,144,121       1,141,618  
  10,000     Nestlé SA     718,339       1,245,285  
  2,000     Pernod Ricard SA     223,358       443,945  
  2,000     Remy Cointreau SA     239,935       412,878  
  1,000     Yakult Honsha Co. Ltd.     51,696       56,618  
                         
        U.S. Companies                
  10,000     McCormick & Co. Inc., Non- Voting     352,793       883,200  
              5,546,187       9,094,397  
        Health Care — 0.4%                
        U.S. Companies                
  17,500     Pfizer Inc.     648,353       685,300  
  2,000     PPD Inc.†     92,398       92,180  
              740,751       777,480  
        Hotels and Gaming — 1.0%                
        Non U.S. Companies              
  150,000     Genting Singapore Ltd.     143,064       93,144  
  460,000     Mandarin Oriental  International Ltd.†     777,273       920,000  
  370,000     The Hongkong & Shanghai  Hotels Ltd.†     435,755       389,333  
                         
        U.S. Companies                
  2,000     Churchill Downs Inc.     171,520       396,520  
              1,527,612       1,798,997  
        Machinery — 2.0%                
        Non U.S. Companies                
  185,000     CNH Industrial NV     1,604,980       3,093,200  
                       
        U.S. Companies              
  3,000     Xylem Inc.     127,377       359,880  
              1,732,357       3,453,080  


 

See accompanying notes to financial statements.

 

7

 

  

The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

  

                Market  
Shares         Cost     Value  
        COMMON STOCKS (Continued)                
        OTHER (Continued)                
        Specialty Chemicals — 1.7%                
        Non U.S. Companies                
  6,000     Axalta Coating Systems Ltd.†   $ 138,344     $ 182,940  
  600     Givaudan SA     1,516,339       2,790,381  
                         
        U.S. Companies                
  300     Air Products and Chemicals  Inc.     71,064       86,304  
              1,725,747       3,059,625  
                         
        Transportation — 0.2%                
        U.S. Companies                
  4,500     GATX Corp.     165,721       398,115  
                         
        TOTAL OTHER     34,815,226       50,336,838  
        .                
        COMMUNICATIONS — 17.1%                
        Cable and Satellite — 6.0%                
        Non U.S. Companies                
  11,000     Cogeco Inc.     261,408       853,130  
  100,000     ITV plc†     188,271       173,674  
  27,100     Liberty Global plc, Cl. A†     563,112       736,036  
  44,000     Liberty Global plc, Cl. C†     801,618       1,189,760  
  30,000     Liberty Latin America Ltd., Cl. A†     417,184       415,800  
  3,632     Liberty Latin America Ltd., Cl. C†     25,925       51,211  
  45,000     Rogers Communications  Inc., Cl. B     1,898,796       2,391,300  
  6,000     Shaw Communications Inc., Cl. B     170,964       173,814  
                         
        U.S. Companies                
  200     Charter Communications Inc., Cl. A†     42,288       144,290  
  16,000     Comcast Corp., Cl. A     450,552       912,320  
  37,000     DISH Network Corp., Cl. A†     827,614       1,546,600  
  6,000     EchoStar Corp., Cl. A†     122,586       145,740  
  168     Liberty Broadband Corp., Cl. B†     8,321       28,365  
  85,000     WideOpenWest Inc.†     638,059       1,760,350  
              6,416,698       10,522,390  
                         
        Telecommunications — 9.4%                
        Non U.S. Companies                
  37,000     BCE Inc.     1,429,769       1,824,840  
  140,000     BT Group plc, Cl. A†     455,902       375,704  
  44,000     Deutsche Telekom AG     786,512       929,306  
  56,000     Deutsche Telekom AG, ADR     915,070       1,190,560  
  60,000     Euskaltel SA     792,057       781,172  
  465,000     Koninklijke KPN NV     1,371,180       1,452,318  
                Market  
Shares         Cost     Value  
  12,000     Maroc Telecom   $ 193,061   $ 184,977  
  95,000     Orange Belgium SA     2,504,344       2,131,267  
  5,000     Orange SA, ADR     59,301       57,200  
  27,000     Orascom Investment Holding, GDR     20,022       810  
  60,000     Pharol SGPS SA†     9,134       7,186  
  8,000     Proximus SA     178,511       154,527  
  1,200     Swisscom AG     384,765       685,047  
  2,000     Swisscom AG, ADR     88,550       114,455  
  40,000     Telecom Italia SpA     31,273       19,868  
  13,500     Telefonica Brasil SA, ADR     199,291       114,750  
  45,000     Telefonica Deutschland Holding AG     216,897       118,723  
  72,791     Telefonica SA, ADR     332,588       342,118  
  70,000     Telekom Austria AG     606,149       597,618  
  25,000     Telenet Group Holding NV     1,114,322       940,893  
  5,000     TELUS Corp.     77,636       112,133  
  300,000     VEON Ltd., ADR†     710,574       549,000  
                         
        U.S. Companies                
  7,000     AT&T Inc.     218,596       201,460  
  6,000     Loral Space & Communications Inc.     126,420       233,100  
  60,000     Lumen Technologies Inc.     842,169       815,400  
  10,000     Shenandoah Telecommunications Co.     435,830       485,100  
  15,000     Telephone and Data Systems Inc.     302,656       339,900  
  1,000     T-Mobile US Inc.†     22,694       144,830  
  32,000     Verizon Communications Inc.     1,352,836       1,792,960  
              15,778,109       16,697,222  
                         
        Wireless Communications — 1.7%                
        Non U.S. Companies                
  3,000     America Movil SAB de CV, Cl. L, ADR     43,420       45,000  
  5,000     Infrastrutture Wireless  Italiane SpA     53,486       56,394  
  20,000     Millicom International Cellular SA, SDR†     978,899       791,765  
  6,000     Mobile TeleSystems PJSC, ADR     64,059       55,560  
  6,000     SK Telecom Co. Ltd., ADR     137,159       188,460  
  20,000     Turkcell Iletisim Hizmetleri A/S, ADR     136,221       93,400  
  75,000     Vodafone Group plc, ADR     1,485,106       1,284,750  
                         
        U.S. Companies                
  4,000     Anterix Inc.†     155,386       239,960  


 

See accompanying notes to financial statements.

 

8

 

  

The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

  

                Market  
Shares         Cost     Value  
      COMMON STOCKS (Continued)            
      COMMUNICATIONS (Continued)            
        Wireless Communications (Continued)                
        U.S. Companies (Continued)                
  8,000     United States Cellular Corp.†   $ 276,572     $ 290,480  
              3,330,308       3,045,769  
                         
        TOTAL COMMUNICATIONS     25,525,115       30,265,381  
                         
        INDEPENDENT POWER PRODUCERS AND ENERGY TRADERS — 0.1%                
        Independent Power Producers and Energy Traders — 0.1%                
        U.S. Companies                
  3,000     NRG Energy Inc.     66,531       120,900  
                         
        ENVIRONMENTAL SERVICES — 0.0%                
        Water — 0.0%                
        U.S. Companies                
  1,500     Evoqua Water Technologies Corp.†     17,487       50,670  
                         
        DIVERSIFIED INDUSTRIAL — 0.0%                
        Electronics — 0.0%                
        U.S. Companies                
  100     Roper Technologies Inc.     25,045       47,020  
                         
        TOTAL COMMON STOCKS     108,601,876       151,865,637  
                         
        CLOSED-END FUNDS— 0.1%                
  10,000     Altaba Inc., Escrow†     103,000       145,500  
                       
        RIGHTS— 0.0%                
        OTHER — 0.0%                
        Health Care — 0.0%                
        Non U.S. Companies                
  17,029     Ipsen SA/Clementia,CVR†(a)     22,989       0  
                       
        WARRANTS — 0.0%                
        ENERGY AND UTILITIES — 0.0%                
        Natural Resources — 0.0%                
        U.S. Companies                
  1,500     Occidental Petroleum Corp., expire 08/03/27†     7,425       20,865  
                    Market  
  Shares         Cost     Value  
        Services — 0.0%                
        Non U.S. Companies                
  2,850     Weatherford International  plc, expire 12/13/23†   $ 0     $ 1,254  
                         
        TOTAL ENERGY AND UTILITIES     7,425       22,119  
                         
        TOTAL WARRANTS.     7,425       22,119  
                         
  Principal                      
  Amount                      
        CONVERTIBLE CORPORATE BONDS — 0.0%                
        OTHER — 0.0%                
        Financial Services — 0.0%                
        Non U.S. Companies                
                         
$ 25,000     Credit Suisse Group Guernsey VII Ltd., 3.000%, 11/12/21(b)     27,507       30,427  
                       
        U.S. GOVERNMENT OBLIGATIONS — 14.2%              
  25,252,000     U.S. Treasury Bills, 0.002% to 0.055%††, 07/08/21 to 12/09/21     25,249,020       25,248,606  
                         
TOTAL INVESTMENTS — 100.0%   $ 134,011,817       177,312,289  
Other Assets and Liabilities (Net)             217,666  
                 
PREFERRED SHARES                
(1,290,558 preferred shares outstanding)             (64,527,900)  
                 
NET ASSETS — COMMON SHARES                
(5,374,372 common shares outstanding)           $ 113,002,055  
                 
NET ASSET VALUE PER COMMON SHARE                
($113,002,055 ÷ 5,374,372 shares outstanding)           $ 21.03  

 

 

(a) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers.

Non-income producing security.

†† Represents annualized yields at dates of purchase.

 

ADR American Depositary Receipt

CVR Contingent Value Right

GDR Global Depositary Receipt

SDR Swedish Depositary Receipt


 

See accompanying notes to financial statements.

 

9

 

   

The Gabelli Global Utility & Income Trust

Schedule of Investments (Continued) — June 30, 2021 (Unaudited)

 

  

    % of Total   Market  
Geographic Diversification   Investments   Value  
United States     53.0 %   $ 94,007,949  
Europe     34.7       61,571,947  
Canada     5.8       10,317,513  
Japan     2.7       4,698,538  
Asia/Pacific     2.1       3,675,309  
Latin America     1.4       2,432,769  
South Africa     0.2       419,914  
Africa/Middle East     0.1       188,350  
Total Investments     100.0 %   $ 177,312,289  

 

 



See accompanying notes to financial statements.

 

10

 

 

The Gabelli Global Utility & Income Trust

 

Statement of Assets and Liabilities

June 30, 2021 (Unaudited)

 

 

Assets:      
Investments, at value (cost $134,011,817)   $ 177,312,289  
Foreign currency, at value (cost $18,969)     18,899  
Cash     12,617  
Receivable for investments sold     184,264  
Dividends and interest receivable     482,704  
Deferred offering expense     62,368  
Prepaid expenses     2,543  
Total Assets     178,075,684  
Liabilities:        
Distributions payable     35,804  
Payable for investments purchased     253,975  
Payable for investment advisory fees     74,017  
Payable for payroll expenses     17,503  
Payable for accounting fees     3,750  
Payable for shareholder services fees     71,129  
Payable for shareholder communications     47,534  
Payable for legal and audit fees     36,634  
Other accrued expenses     5,383  
Total Liabilities     545,729  
Preferred Shares:        
Series A Cumulative Preferred Shares (3.800%, $50 liquidation value, $0.001 par value, 1,200,000 shares authorized with 32,529 shares  issued and outstanding)     1,626,450  
Series B Cumulative Preferred Shares (4.000%, $50 liquidation value, 1,370,433 shares authorized with 1,258,029 shares issued and outstanding)     62,901,450  
Total Preferred Shares     64,527,900  
Net Assets Attributable to Common Shareholders   $ 113,002,055  
Net Assets Attributable to Common Shareholders Consist of:        
Paid-in capital   $ 72,630,136  
Total distributable earnings     40,371,919  
Net Assets   $ 113,002,055  
Net Asset Value per Common Share:        
($113,002,055 ÷ 5,374,372 shares outstanding at $0.001 par value; unlimited number of shares authorized)   $ 21.03  

Statement of Operations

For the Six Months Ended June 30, 2021 (Unaudited)

 

 

Investment Income:        
Dividends (net of foreign withholding taxes of $167,238)   $ 2,224,016  
Non-cash dividends     200,689  
Interest     10,804  
Total Investment Income     2,435,509  
Expenses:        
Investment advisory fees     436,919  
Payroll expenses     74,710  
Shelf offering expense     50,518  
Shareholder communications expenses     50,119  
Legal and audit fees     35,877  
Trustees’ fees     29,906  
Shareholder services fees     23,914  
Custodian fees     23,591  
Accounting fees     22,500  
Interest expense     51  
Miscellaneous expenses     30,073  
Total Expenses     778,178  
Less:        
Expenses paid indirectly by broker (See Note 3)     (1,147 )
Net Expenses     777,031  
Net Investment Income     1,658,478  
Net Realized and Unrealized Gain/(Loss) on        
Investments and Foreign Currency:        
Net realized gain on investments     1,939,813  
Net realized gain on foreign currency transactions     4,061  
Net realized gain on investments and foreign currency transactions     1,943,874  
Net change in unrealized appreciation/depreciation:        
on investments     9,265,044  
on foreign currency translations     (7,111 )
Net change in unrealized appreciation/depreciation on investments and foreign currency translations     9,257,933  
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency     11,201,807  
Net Increase in Net Assets Resulting from Operations     12,860,285  
Total Distributions to Preferred Shareholders     (1,289,077 )
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations   $ 11,571,208  


 

See accompanying notes to financial statements.

 

11

 

 

The Gabelli Global Utility & Income Trust

Statement of Changes in Net Assets Attributable to Common Stockholders

 

 

    Six Months Ended        
    June 30, 2021     Year Ended  
    (Unaudited)     December 31, 2020  
             
Operations:                
Net investment income   $ 1,658,478     $ 2,132,361  
Net realized gain/(loss) on investments and foreign currency transactions     1,943,874       (2,658,590 )
Net change in unrealized appreciation/depreciation on investments and foreign currency translations     9,257,933       4,439,859  
Net Increase in Net Assets Resulting from Operations     12,860,285       3,913,630  
Distributions to Preferred Shareholders:                
Accumulated earnings     (1,289,077 )*     (2,259,204 )
Return of capital           (321,889 )
Total Distributions to Preferred Shareholders     (1,289,077 )     (2,581,093 )
                 
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations     11,571,208       1,332,537  
                 
Distributions to Common Shareholders:                
Accumulated earnings     (2,095,752 )*      
Return of capital     (1,128,481 )*     (6,446,351 )
                 
Total Distributions to Common Shareholders     (3,224,233 )     (6,446,351 )
                 
Fund Share Transactions:                
Net increase in net assets from common shares issued upon reinvestment of distributions     17,157       64,355  
Net increase in net assets from repurchase of preferred shares     5,898        
Net Increase in Net Assets from Fund Share Transactions     23,055       64,355  
                 
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders     8,370,030       (5,049,459 )
                 
Net Assets Attributable to Common Shareholders:                
Beginning of year     104,632,025       109,681,484  
End of period   $ 113,002,055     $ 104,632,025  

 

 

 

* Based on year to date book income. Amounts are subject to change and recharacterization at year end.

 

See accompanying notes to financial statements.

 

12

 

 

The Gabelli Global Utility & Income Trust

Financial Highlights

 

 

Selected data for a common share of beneficial interest outstanding throughout each period:

 

    Six Months Ended
June 30, 2021
    Year Ended December 31,  
    (Unaudited)     2020     2019     2018     2017     2016  
Operating Performance:                        
Net asset value, beginning of year   $ 19.47     $ 20.43     $ 18.75     $ 22.43     $ 19.83     $ 19.57  
Net investment income     0.31 (a)     0.40       0.57       0.58       0.62       0.78  
Net realized and unrealized gain/(loss) on investments and foreign currency transactions    

2.09

      0.32       3.13       (2.15)      

3.65

      1.11  
Total from investment operations     2.40       0.72       3.70       (1.57 )     4.27       1.89  
Distributions to Preferred Shareholders:                                                
(b)     (0.11 )*     (0.42 )     (0.29 )     (0.12 )     (0.18 )     (0.24 )
Net investment income                                                
Net realized gain     (0.13 )*           (0.54 )     (0.16 )     (0.29 )     (0.19 )
Return of capital           (0.06 )                        
Total distributions to preferred shareholders     (0.24 )     (0.48 )     (0.83 )     (0.28 )     (0.47 )     (0.43 )
Net Increase/(Decrease) in Net Assets                                                
Attributable to Common Shareholders                                                
Resulting from Operations     2.16       0.24       2.87       (1.85 )     3.80       1.46  
Distributions to Common Shareholders:                                                
Net investment income     (0.17 )*           (0.27 )     (0.49 )     (0.44 )     (0.59 )
Net realized gain     (0.22 )*           (0.52 )     (0.64 )     (0.76 )     (0.49 )
Return of capital     (0.21 )*     (1.20 )     (0.41 )     (0.07 )           (0.12 )
Total distributions to common shareholders     (0.60 )     (1.20 )     (1.20 )     (1.20 )     (1.20 )     (1.20 )
Fund Share Transactions:                                                
Increase in net asset value from common shares issued upon reinvestment of distributions     0.00 (c)                              
Increase in net asset value from repurchase of preferred shares     0.00 (c)           0.01       0.00 (c)            
Offering expenses charged to paid-in capital                 0.00 (c)     (0.08 )            
Decrease in net asset value from                                                
common shares issued in rights offering                       (0.55 )            
Total Fund share transactions     0.00 (c)           0.01       (0.63 )            
Net Asset Value Attributable to Common                                                
Shareholders, End of Period   $ 21.03     $ 19.47     $ 20.43     $ 18.75     $ 22.43     $ 19.83  
NAV total return (d)     11.16 %     2.33 %     15.83 %     (8.86 )%     19.59 %     7.53 %
Market value, end of period   $ 20.90     $ 18.42     $ 18.88     $ 16.10     $ 21.30     $ 16.80  
Investment total return (e)     16.91 %     4.86 %     25.09 %     (16.74 )%     34.83 %     7.81 %
                                               
Ratios to Average Net Assets and Supplemental Data:                                                
Net assets including liquidation value of preferred shares, end of period (in 000’s)   $ 177,530     $ 169,245     $ 174,294     $ 165,875     $ 143,533     $ 132,847  
Net assets attributable to common shares, end of period (in 000’s)   $ 113,002     $ 104,632     $ 109,681     $ 100,655     $ 92,229     $ 81,543  
Ratio of net investment income to average net assets attributable to common shares before preferred share distributions     3.01 %(a)(f)     2.29 %     2.90 %     2.73 %     2.88 %     3.83 %

 

See accompanying notes to financial statements.

 

13

 

 

The Gabelli Global Utility & Income Trust

Financial Highlights (Continued)

 

  

Selected data for a common share of beneficial interest outstanding throughout each period:

 

    Six Months Ended
June 30, 2021
    Year Ended December 31,  
    (Unaudited)     2020     2019     2018     2017     2016  
Ratio of operating expenses to average net assets attributable to common shares (g)(h)     1.41 %(f)(i)     1.39 %(i)     1.33 %(i)     1.33 %(i)     1.34 %     1.39 %(j)
Portfolio turnover rate     6 %     27 %     71 %     13 %     9 %     22 %
                                                 
Cumulative Preferred Shares:                                                
Series A Preferred                                                
Liquidation value, end of period (in 000’s)   $ 1,626     $ 1,711     $ 1,711     $ 2,319     $ 51,304     $ 51,304  
Total shares outstanding (in 000’s)     33       34       34       46       1,026       1,026  
Liquidation preference per share   $ 50.00     $ 50.00     $ 50.00     $ 50.00     $ 50.00     $ 50.00  
Average market value (k)   $ 45.94     $ 45.94     $ 46.84     $ 49.10     $ 50.90     $ 51.17  
Asset coverage per share (l)   $ 137.56     $ 130.97     $ 134.88     $ 127.17     $ 139.88     $ 129.47  
                                                 
Series B Preferred                                                
Liquidation value, end of period (in 000’s).   $ 62,901     $ 62,901     $ 62,901     $ 62,901              
Total shares outstanding (in 000’s)     1,258       1,258       1,258       1,258              
Liquidation preference per share   $ 50.00     $ 50.00     $ 50.00     $ 50.00              
Average market value (k)   $ 52.07     $ 51.66     $ 52.15     $ 51.32              
Asset coverage per share (l)   $ 137.56     $ 130.97     $ 134.88     $ 127.17              
Asset Coverage (m)     275 %     262 %     270 %     254 %     280 %     259 %

 

 

* Based on year to date book income. Amounts are subject to change and recharacterization at year end.

(a) Includes income resulting from special dividends. Without these dividends, the per share income amount would have been 0.27, and the net investment income ratio would have been 2.64%.

(b) Calculated based on average common shares outstanding on the record dates throughout the periods.

(c) Amount represents less than $0.005 per share.

(d) Based on net asset value per share, adjusted for reinvestment of distributions at the net asset value per share on the ex-dividend dates and adjustments for the rights offering. Total return for a period of less than one year is not annualized.

(e) Based on market value per share at initial public offering of $20.00 per share, adjusted for reinvestments of distributions at prices obtained under the Fund’s dividend reinvestment plan and adjustments for the rights offering. Total return for a period of less than one year is not annualized.

(f) Annualized.

(g) The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all periods presented there was no impact on the expense ratios.

(h) Ratio of operating expenses to average net assets including liquidation value of preferred shares for the six months ended June 30, 2021, and the years ended December 31, 2020, 2019, 2018, 2017, and 2016, would have been 0.89%, 0.82%, 0.83%, 1.00%, 0.85%, and 0.86%, respectively.

(i) The Fund incurred interest expense during the six months ended June 30, 2021 and years ended December 31, 2019 and 2018. If expense had not been incurred, the expense ratios would have been 1.41%, 1.32%, and 1.31% attributable to common shares and 0.85%, 0.82%, and 0.99% including liquidation of preferred shares, respectively. For the years ended December 31, 2017, and 2016, there was no impact on the expense ratios.

(j) During the year ended December 31, 2016, the Fund received a reimbursement of custody expenses paid in prior years. Had such reimbursement been included in 2016, the expense ratios would have been 1.18% attributable to common shares and 0.73% including liquidation value of preferred shares.

(k) Based on weekly prices.

(l) Asset coverage per share is calculated by combining all series of preferred shares.

(m) Asset coverage is calculated by combining all series of preferred shares.

 

See accompanying notes to financial statements.

 

14

 

 

The Gabelli Global Utility & Income Trust

Notes to Financial Statements (Unaudited)

 

  

1.  Organization. The Gabelli Global Utility & Income Trust (the Fund) is a non-diversified closed-end management investment company organized as a Delaware statutory trust on March 8, 2004 and registered under the Investment Company Act of 1940, as amended (the 1940 Act). Investment operations commenced on May 28, 2004.

 

The Fund’s investment objective is to seek a consistent level of after-tax total return over the long term with an emphasis currently on qualified dividends. The Fund will attempt to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in equity securities (including preferred securities) of domestic and foreign companies involved to a substantial extent in providing products, services, or equipment for the generation or distribution of electricity, gas, or water and infrastructure operations, and in equity securities (including preferred securities) of companies in other industries, in each case in such securities that are expected to pay periodic dividends.

 

2.  Significant Accounting Policies.As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the Board) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the Adviser).

 

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt obligations for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the securities are valued using the closing bid price, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. OTC futures and options on

 

15

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

futures for which market quotations are readily available will be valued by quotations received from a pricing service or, if no quotations are available from a pricing service, by quotations obtained from one or more dealers in the instrument in question by the Adviser.

 

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

 

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

 

Level 1 — quoted prices in active markets for identical securities;

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

16

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2021 is as follows:

 

    Valuation Inputs        
    Level 1     Level 2 Other Significant     Level 3 Significant     Total Market Value  
    Quoted Prices     Observable Inputs     Unobservable Inputs (a)     at 06/30/21  
INVESTMENTS IN SECURITIES:                                
ASSETS (Market Value):                                
Common Stocks:                                
Communications                                
Cable and Satellite   $ 10,494,025     $ 28,365           $ 10,522,390  
Other Industries (b)     19,742,991                   19,742,991  
Diversified Industrial (b)     47,020                   47,020  
Energy and Utilities (b)     71,044,828                   71,044,828  
Environmental Services (b)     50,670                   50,670  
Independent Power Producers and                                
Energy Traders (b)     120,900                   120,900  
Other (b)     50,336,838                   50,336,838  
Total Common Stocks     151,837,272       28,365             151,865,637  
Closed-End Funds           145,500             145,500  
Rights (b)               $ 0       0  
Warrants (b)     22,119                   22,119  
Convertible Corporate Bonds (b)           30,427             30,427  
U.S. Government Obligations           25,248,606             25,248,606  
TOTAL INVESTMENTS IN SECURITIES – ASSETS   $ 151,859,391     $ 25,452,898     $ 0     $ 177,312,289  

 

 

 

(a) Level 3 securities are valued at last available closing price. The inputs for this security are not readily available and are derived based on the judgment of the Adviser according to procedures approved by the Board of Trustees.

(b) Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

 

During the six months ended June 30, 2021, the Fund did not have transfers into or out of Level 3.

 

Additional Information to Evaluate Qualitative Information.

 

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

 

17

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

Fair Valuation. Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. When fair valuing a security, factors to consider include recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

 

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

 

Investments in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the Acquired Funds) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June 30, 2021, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than 1 basis point.

 

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

 

Collateral requirements differ by type of derivative. Collateral requirements are set by the broker or exchange clearing house for exchange traded derivatives, while collateral terms are contract specific for derivatives traded over-the-counter. Securities pledged to cover obligations of the Fund under derivative contracts are noted in the Schedule of Investments. Cash collateral, if any, pledged for the same purpose will be reported separately in the Statement of Assets and Liabilities.

 

The Fund’s policy with respect to offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the master agreement does not result in an offset of reported amounts of financial assets

 

18

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

 

The Fund’s derivative contracts held at June 30, 2021, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

 

Swap Agreements. The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short term interest rates and the returns on the Fund’s portfolio securities at the time an equity contract for difference swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction.

 

Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a liability in the Statement of Assets and Liabilities. The change in value of swaps, including the accrual of periodic amounts of interest to be received or paid on swaps, is reported as unrealized gain or loss in the Statement of Operations. A realized gain or loss is recorded upon receipt or payment of a periodic payment or termination of swap agreements. For the six months ended June 30, 2021, the Fund held no investments in equity contract for difference swap agreements.

 

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (CFTC). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (CEA), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund which permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future the Fund will be more limited in its ability to use these

 

19

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

 

instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

 

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

 

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

 

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

 

Restricted Securities. The Fund is not subject to an independent limitation on the amount it may invest in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and, accordingly, the Board will monitor their liquidity. At June 30, 2021 the Fund held no restricted securities.

 

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method or amortized to earliest call date, if applicable. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

 

20

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

Distributions to Shareholders. Distributions to shareholders are recorded on the ex-dividend date. The characterization of distributions to shareholders is based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, and timing differences. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund.

 

Under the fund’s current common share distribution policy, the Fund declares and pays monthly distributions from net investment income, capital gains, and paid-in capital. The actual source of the distribution is determined after the end of the calendar year. Pursuant to this policy, distributions during the year may be made in excess of required distributions. To the extent such distributions are made from current earnings and profits, they are considered ordinary income or long term capital gains. Distributions sourced from paid-in capital should not be considered as dividend yield or the total return from an investment in the Fund. The Board will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s NAV and the financial market environment. The Fund’s distribution policy is subject to modification by the Board at any time.

 

Distributions to shareholders of the Fund’s 3.800% Series A Cumulative Preferred Shares (Series A Preferred) and 4.000% Series B Cumulative Preferred Shares (Series B Preferred) are recorded on a daily basis and are determined as described in Note 5.

 

The tax character of distributions paid during the year ended December 31, 2020 was as follows:

 

    Common     Preferred  
Distributions paid from:                
Ordinary income         $ 2,259,204  
Return of capital   $ 6,446,351       321,889  
Total distributions paid   $ 6,446,351     $ 2,581,093  

 

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

 

21

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

At December 31, 2020, the Fund had net long term capital loss carryforwards for federal income tax purposes which are available to reduce future required distributions of net capital gains to shareholders. The Fund is permitted to carry capital losses forward for an unlimited period. Capital losses that are carried forward will retain their character as either short term or long term capital losses.

 

Short term capital loss carryforward with no expiration   $ 756,281  
Long term capital loss carryforward with no expiration     1,394,061  
Total Capital Loss Carryforwards   $ 2,150,342  

 

The following summarizes the tax cost of investments and the related net unrealized appreciation at June 30, 2021:

 

      Gross   Gross    
      Unrealized   Unrealized   Net Unrealized
  Cost   Appreciation   Depreciation   Appreciation
Investments $134,874,996   $46,668,992   $(4,231,699)   $42,437,293

 

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the six months ended June 30, 2021, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2021, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

 

3.  Investment Advisory Agreement and Other Transactions. The Fund has entered into an investment advisory agreement (the Advisory Agreement) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, currently equal on an annual basis to 0.50% of the value of the Fund’s average weekly total assets including the liquidation value of preferred shares. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs.

 

During the six months ended June 30, 2021, the Fund paid $549 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

 

During the six months ended June 30, 2021, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $1,147.

 

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service.

 

22

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

During the six months ended June 30, 2021, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

 

As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser). During six months ended June 30, 2021, the Fund accrued $74,710 in payroll expenses in the Statement of Operations.

 

The Fund pays retainer and per meeting fees to Trustees not affiliated with the Adviser, plus specified amounts to the Lead Trustee and Audit Committee Chairman. Trustees are also reimbursed for out of pocket expenses incurred in attending meetings. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

 

4.  Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2021, other than short term securities and U.S. Government obligations, aggregated $10,271,240 and $8,852,508, respectively.

 

5.  Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial interest (par value $0.001). The Board has authorized the repurchase of its shares on the open market when the shares are trading at a discount of 10% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the six months ended June 30, 2021 and the year ended December 31, 2020, the Fund did not repurchase and retire any common shares in the open market.

 

For the six months ended June 30, 2021 and the year ended December 31, 2020, transactions in common stock were as follows:

 

    Six Months Ended              
    June 30, 2021     Year Ended  
    (Unaudited)     December 31, 2020  
    Shares     Amount     Shares     Amount  
Net increase in net assets from common shares issued upon reinvestment of distributions     794     $ 17,157       4,252     $ 64,355  

 

The Fund’s Declaration of Trust, as amended, authorizes the issuance of an unlimited number of shares of $0.001 par value Preferred Shares. Preferred Shares are senior to the common shares and result in the financial leveraging of the common shares. Such leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on the Series A and Series B Preferred are cumulative and the liquidation value is $50 per share. The Fund is required by the 1940 Act and by the Fund’s Statement of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Series A and Series B Preferred Shares at the redemption price of $50 per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received

 

23

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

on the Fund’s assets may vary in a manner unrelated to the fixed and variable rates, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.

 

On May 24, 2021, the Fund filed a shelf registration in the amount of $165 million. As of June 30, 2021, the shelf registration had not been declared effective by the SEC.

 

The Series A Preferred has an annual dividend rate of 3.80%. The Fund may redeem at any time all or any part of the Series A Preferred at the liquidation value plus accumulated and unpaid dividends. During the six months ended June 30, 2021, the Fund repurchased and retired 1,700 of the Series A Preferred Shares in the open market at an investment of $79,103 and an average discount of approximately 7.49% from its liquidation preference.

 

The Series B Preferred paid distributions quarterly at an annualized dividend rate of 7.00% of the $50 per share liquidation preference for the quarterly dividend periods ending on or prior to December 26, 2019 (Year 1). During the last dividend period of Year 1, the Board determined that the dividend rate for the next eight quarterly dividend periods (Year 2 and Year 3) will be 4.00%. During the last dividend period occurring in Year 3, the Board will determine and publicly announce at least 30 days prior to the end of such dividend period a fixed annual dividend rate that will apply for all remaining dividend periods. The reset dividend rate will be determined by the Board or a committee thereof in its sole discretion, and such rate will be at least 200 basis points over the yield of the ten year U.S. Treasury Note at the date of determination, but in no case will such rate be less than an annualized rate of 4.00% nor greater than an annualized rate of 7.00%. The Series B may be put back to the Fund during the 30 day period prior to each of December 26, 2021 and December 26, 2023 at the liquidation preference of $50 per share, plus any accumulated and unpaid dividends, and redeemed by the Fund, at its option, at the liquidation preference of $50 per share, plus any accumulated and unpaid dividends, at any time commencing on December 26, 2023.

 

The following table summarizes Cumulative Preferred Stock information:

 

      Number of        
      Shares     Dividend Accrued
      Outstanding at   2021 Dividend Rate at Dividends at
Series Issue Date Authorized 6/30/2021 Net Proceeds Rate Range 6/30/2021 6/30/2021
A 3.800% April 11, 2013 1,200,000 32,529 $70,286,465 Fixed Rate 3.800% $859
B 4.000% December 19, 2018 1,370,433 1,258,029 84,586,957 Fixed Rate 4.000% $34,945

 

The holders of Preferred Shares generally are entitled to one vote per share held on each matter submitted to a vote of stockholders of the Fund and will vote together with holders of common stock as a single class. The holders of Preferred Shares voting together as a single class also have the right currently to elect two Trustees and, under certain circumstances, are entitled to elect a majority of the Board of Trustees. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the preferred shares, voting as a single class, will be required to approve any plan of reorganization adversely affecting the preferred stock, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding preferred shares and a majority (as defined in the 1940 Act) of the Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment objectives or fundamental investment policies.

 

24

 

 

The Gabelli Global Utility & Income Trust 

Notes to Financial Statements (Unaudited) (Continued)

 

  

6.  Industry Concentration. Because the Fund primarily invests in common stocks and other securities of foreign and domestic companies in the utility industry, its portfolio may be subject to greater risk and market fluctuations than a portfolio of securities representing a broad range of investments.

 

7.  Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

 

8.  Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

 

 

 

 

 

 

 

Certifications

 

The Fund’s Chief Executive Officer has certified to the New York Stock Exchange (NYSE) that, as of June 7, 2021, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund reports to the SEC on Form N-CSR which contains certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the 1940 Act.

 

Shareholder Meeting – May 10, 2021 – Final Results

 

The Fund’s Annual Meeting of Shareholders was held virtually on May 10, 2021. At that meeting, common and preferred shareholders, voting together as a single class, elected Calgary Avansino and Salvatore M. Salibello as Trustees of the Fund, with 5,340,330 votes and 5,342,050 cast in favor of these Trustees, and 193,849 votes and 192,129 withheld for these Trustees, respectively.

 

In addition, preferred shareholders, voting as a separate class, re-elected James P. Conn as a Trustee of the Fund, with 963,246 votes cast in favor of this Trustee and 111,962 votes withheld for this Trustee.

 

Vincent D. Enright, Leslie F. Foley, Michael J. Melarkey, Kuni Nakamura and Salvatore J. Zizza continue to serve in their capacities as Trustees of the Fund.

 

We thank you for your participation and appreciate your continued support.

 

25

 

 

THE GABELLI GLOBAL UTILITY & INCOME TRUST

AND YOUR PERSONAL PRIVACY

 

Who are we?

 

The Gabelli Global Utility & Income Trust 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., a publicly held company that has subsidiaries that provide investment advisory services for a variety of clients.

 

What kind of non-public information do we collect about you if you become a fund shareholder?

 

When you purchase shares of the Fund on the New York Stock Exchange, you have the option of registering directly with our transfer agent in order, for example, to participate in our dividend reinvestment plan.

 

Information you give us on your application form. This could include your name, address, telephone number, social security number, bank account number, and other information.

 

Information about your transactions with us. This would include information about the shares that you buy or sell; it may also include information about whether you sell or exercise rights that we have issued from time to time. If we hire someone else to provide services — like a transfer agent — we will also have information about the transactions that you conduct through them.

 

What information do we disclose and to whom do we disclose it?

 

We do not disclose any non-public personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www. sec.gov.

 

What do we do to protect your personal information?

 

We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.

 

 

 

 

THE GABELLI GLOBAL UTILITY & INCOME TRUST

One Corporate Center

Rye, NY 10580-1422

 

 

 

Portfolio Management Team Biographies

 

Mario J. Gabelli, CFA,is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Executive Chairman of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

 

Timothy M. Winter, CFA,joined Gabelli in 2009 and covers the utility industry. He has over 25 years of experience as an equity research analyst covering the industry. Currently, he continues to specialize in the utility industry and also serves as a portfolio manager of Gabelli Funds, LLC. Mr. Winter received his BA in Economics from Rollins College and MBA in Finance from Notre Dame.

 

Hendi Susanto joined Gabelli in 2007 as the lead technology research analyst. He spent his early career in supply chain management consulting and operations in the technology industry. He currently is a portfolio manager of Gabelli Funds, LLC and a Vice President of Associated Capital Group Inc. Mr. Susanto received a BS degree summa cum laude from the University of Minnesota, an MS from Massachusetts Institute of Technology, and an MBA from the Wharton School of Business.

 

 

 

 

 

 

We have separated the portfolio managers’ commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the contents of the portfolio managers’ commentary are unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

 

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in 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.

 

The NASDAQ symbol for the Net Asset Value is “XGLUX.”

 

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may from time to time purchase its common shares in the open market when the Fund’s shares are trading at a discount of 10% or more from the net asset value of the shares. The Fund may also, from time to time, purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.

 

 

 

THE GABELLI GLOBAL UTILITY & INCOME TRUST 

One Corporate Center

Rye, New York 10580-1422

 

t 800-GABELLI (800-422-3554)
f 914-921-5118
e info@gabelli.com
GABELLI.COM

 

 

TRUSTEES  
   
Calgary Avansino OFFICERS
Former Chief Executive Officer, Bruce N. Alpert
Glamcam President
   
James P. Conn John C. Ball
Former Managing Director & Treasurer
Chief Investment Officer,  
Financial Security Assurance Peter Goldstein
Holdings LTD. Secretary & Vice President
   
Vincent D. Enright Richard J. Walz
Former Senior Vice President & Chief Compliance Officer
Chief Financial Officer,  
KeySpan Corp. Adam E. Tokar
  Vice President & Ombudsman
Leslie F. Foley  
Attorney, David I. Schachter
Addison Gallery of American Art Vice President
   
Michael J. Melarkey INVESTMENT ADVISER
Of Counsel,  
McDonald Carano Wilson LLP Gabelli Funds, LLC
  One Corporate Center
Kuni Nakamura Rye, New York 10580-1422
President,  
Advanced Polymer, Inc. CUSTODIAN
   
  State Street Bank and Trust
Salvatore M. Salibello Company
Senior Partner,  
Bright Side Consulting COUNSEL
   
Salvatore J. Zizza Skadden, Arps, Slate, Meagher &
Chairman, Flom LLP
Zizza & Associates Corp.  
  TRANSFER AGENT AND
  REGISTRAR
  Computershare Trust Company, N.A.

 

 

 

 

 

 

 

 

 

 

 

 

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GLU Q2/2021



 

 

 

 

(b) Not applicable.

 

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.

 

Effective July 1, 2021, Mr. Jose Garza resigned as an employee of the Adviser, and Mr. Hendi Susanto was added to the Fund’s portfolio management team.

 

Hendi Susanto joined Gabelli in 2007 as the lead technology research analyst. He spent his early career in supply chain management consulting and operations in the technology industry. He currently is a portfolio manager of Gabelli Funds, LLC and a Vice President of Associated Capital Group Inc. Mr. Susanto received a BS degree summa cum laude from the University of Minnesota, an MS from M.I.T., and an MBA from the Wharton School of Business.

 

Information provided as of December 31, 2020

 

 

 

 

The table below shows the number of other accounts managed by the portfolio manager and the total assets in each of the following categories: registered investment companies, other paid investment vehicles and other accounts. For each category, the table also shows the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on account performance.

 

Name of

Portfolio Manager

Type of accounts Total # managed Total assets No. of Accounts where Advisory Fee is Based on Performance Total Assets with Advisory Fee Based on Performance
Hendi Susanto Registered Investment Companies 3 $4.6 billion 2 $4.6 billion
  Other Pooled Investment Vehicles 0 $0 0 $0
  Other accounts 15 $3.3 million 0 $0

 

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

REGISTRANT PURCHASES OF EQUITY SECURITIES

 

Period

(a) Total Number of

Shares (or Units)

Purchased

(b) Average Price Paid

per Share (or Unit)

(c) Total Number of

Shares (or Units)

Purchased as Part of

Publicly Announced

Plans or Programs

(d) Maximum Number (or

Approximate Dollar

Value) of Shares (or

Units) that May Yet Be

Purchased Under the

Plans or Programs

Month #1
01/01/2021
through
01/31/2021
Common – N/A

Preferred Series A – 400

Preferred Series B – N/A
Common – N/A

Preferred Series A – $46.52

Preferred Series B – N/A
Common – N/A

Preferred Series A – 400

Preferred Series B – N/A
Common – 5,373,578

Preferred Series A – 34,229 - 400 = 33,829

Preferred Series B – 1,258,029

Month #2
02/01/2021
through
02/28/2021

 

Common – N/A

Preferred Series A – 900

Preferred Series B – N/A

 

Common – N/A

Preferred Series A – $46.52

Preferred Series B – N/A

 

Common – N/A

Preferred Series A – 900

Preferred Series B – N/A

 

Common – 5,373,578

Preferred Series A – 33,829 - 900 = 32,929

Preferred Series B – 1,258,029

 

Month #3
03/01/2021
through
03/31/2021
Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A
Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A

Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A

Common – 5,373,578

Preferred Series A – 32,929

Preferred Series B –  1,258,029
Month #4
04/01/2021
through
04/30/2021
Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A
Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A

Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A

Common – 5,373,578

Preferred Series A – 32,929

Preferred Series B – 1,258,029
Month #5
05/01/2021
through
05/31/2021
Common – N/A

Preferred Series A – 400

Preferred Series B – N/A
Common – N/A

Preferred Series A – $45.40

Preferred Series B – N/A
Common – N/A

Preferred Series A – 400

Preferred Series B – N/A

Common – 5,374,372

Preferred Series A – 32,929 - 400 = 32,529

Preferred Series B – 1,258,029

Month #6
06/01/2021
through
06/30/2021
Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A
Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A

Common – N/A

Preferred Series A – N/A

Preferred Series B – N/A

Common – 5,374,372

Preferred Series A – 32,529

Preferred Series B – 1,258,029
Total Common – N/A

Preferred Series A – 1,700

Preferred Series B – N/A
Common – N/A

Preferred Series A – $45.84

Preferred Series B – N/A

Common – N/A

Preferred Series A – 1,700

Preferred Series B – N/A

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 in the Fund’s reports to shareholders 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 $50.00. 

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 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13. 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.

 

(a)(4) 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      September 3, 2021  

  

 

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      September 3, 2021  

 

By (Signature and Title)*    /s/ John C. Ball  
    John C. Ball, Principal Financial Officer and Treasurer  

 

Date      September 3, 2021  

 

* Print the name and title of each signing officer under his or her signature.

 

 

 

 

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