nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21529
The Gabelli Global Utility & Income Trust
 
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
 
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: March 31, 2009
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
 
 

 


 

Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.
(GABELLI LOGO)
The Gabelli Global Utility & Income Trust
First Quarter Report
March 31, 2009
To Our Shareholders,
     The Gabelli Global Utility & Income Trust’s (the “Fund”) net asset value (“NAV”) total return was (12.6)% during the first quarter of 2009, compared with declines of 10.8% and 11.5% for the Standard & Poor’s (“S&P”) 500 Utilities Index and the Lipper Utility Fund Average, respectively. The total return for the Fund’s publicly traded shares was (14.1)% during the first quarter. On March 31, 2009, the Fund’s NAV per share was $15.87, while the price of the publicly traded shares closed at $13.38 on the NYSE Amex.
     Enclosed is the investment portfolio as of March 31, 2009.
Comparative Results
Average Annual Returns through March 31, 2009 (a)
                                 
                            Since
                            Inception
    Quarter   1 Year   3 Year   (05/28/04)
Gabelli Global Utility & Income Trust
                               
NAV Total Return (b)
    (12.65 )%     (25.84 )%     (3.55 )%     2.19 %
Investment Total Return (c)
    (14.11 )     (29.33 )     (4.17 )     (1.61 )
 
                               
S&P 500 Index
    (10.98 )     (38.06 )     (13.05 )     (4.87 )
S&P 500 Utilities Index
    (10.79 )     (29.66 )     (2.54 )     5.57  
Lipper Utility Fund Average
    (11.46 )     (34.25 )     (4.94 )     4.02  
 
(a)   Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The S&P 500 Index is an unmanaged indicator of stock market performance. The S&P 500 Utilities Index is an unmanaged indicator of electric and gas utility stock performance. The Lipper Utility Fund Average reflects the average performance of open-end mutual funds classified in this particular category. Dividends are considered reinvested. You cannot invest directly in an index.
 
(b)   Total returns and average annual returns reflect changes in the NAV per share and reinvestment of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is based on an initial NAV of $19.06.
 
(c)   Total returns and average annual returns reflect changes in closing market values on the NYSE Amex and reinvestment of distributions. Since inception return is based on an initial offering price of $20.00.

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


 

THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS
March 31, 2009 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS — 92.4%
       
       
ENERGY AND UTILITIES — 71.0%
       
       
Energy and Utilities: Alternative Energy — 0.5%
       
       
U.S. Companies
       
  8,000    
Ormat Technologies Inc.
  $ 219,680  
       
 
     
       
Energy and Utilities:
       
       
Electric Transmission and Distribution — 6.0%
       
       
Non U.S. Companies
       
  8,775    
National Grid plc, ADR
    339,066  
  3,300    
Red Electrica Corporacion SA
    128,901  
       
U.S. Companies
       
  4,000    
CH Energy Group Inc.
    187,600  
  2,000    
Consolidated Edison Inc.
    79,220  
  5,000    
Northeast Utilities
    107,950  
  48,000    
NSTAR
    1,530,240  
  40,000    
Pepco Holdings Inc.
    499,200  
  1,666    
UIL Holdings Corp.
    37,185  
       
 
     
       
 
    2,909,362  
       
 
     
       
Energy and Utilities: Integrated — 46.1%
       
       
Non U.S. Companies
       
  150,000    
A2A SpA
    227,789  
  600    
Areva SA
    250,038  
  9,000    
Chubu Electric Power Co. Inc.
    197,303  
  152,000    
Datang International Power Generation Co. Ltd., Cl. H
    66,875  
  2,700    
E.ON AG
    75,009  
  9,000    
E.ON AG, ADR
    249,120  
  10,000    
Electric Power Development Co. Ltd.
    294,994  
  4,000    
Endesa SA
    74,827  
  45,000    
Enel SpA
    215,981  
  9,760    
Energias de Portugal SA, ADR
    340,917  
  29,000    
Enersis SA, ADR
    437,900  
  140,000    
Hera SpA
    230,460  
  10,000    
Hokkaido Electric Power Co. Inc.
    200,030  
  10,000    
Hokuriku Electric Power Co.
    239,430  
  14,000    
Huaneng Power International Inc., ADR
    375,900  
  75,000    
Iberdrola SA
    526,127  
  13,000    
Iberdrola SA, ADR
    364,650  
  3,000    
International Power plc
    9,061  
  26,000    
Korea Electric Power Corp., ADR†
    237,900  
  10,000    
Kyushu Electric Power Co. Inc.
    223,266  
  4,500    
Oesterreichische Elektrizitaetswirtschafts AG, Cl. A
    170,931  
  10,000    
Shikoku Electric Power Co. Inc.
    266,202  
  10,000    
The Chugoku Electric Power Co. Inc.
    216,194  
  16,000    
The Kansai Electric Power Co. Inc.
    345,911  
  10,000    
The Tokyo Electric Power Co. Inc.
    248,522  
  10,000    
Tohoku Electric Power Co. Inc.
    218,720  
       
U.S. Companies
       
  1,000    
Allegheny Energy Inc.
    23,170  
  2,000    
ALLETE Inc.
    53,380  
  20,000    
Ameren Corp.
    463,800  
  31,000    
American Electric Power Co. Inc.
    783,060  
  1,500    
Avista Corp.
    20,670  
  6,000    
Black Hills Corp.
    107,340  
  500    
Cleco Corp.
    10,845  
  500    
CMS Energy Corp.
    5,920  
  10,000    
Dominion Resources Inc.
    309,900  
  60,000    
DPL Inc.
    1,352,400  
  40,000    
Duke Energy Corp.
    572,800  
  4,000    
El Paso Electric Co.†
    56,360  
  10,000    
Florida Public Utilities Co.
    97,700  
  14,000    
FPL Group Inc.
    710,220  
  70,000    
Great Plains Energy Inc.
    942,900  
  22,000    
Hawaiian Electric Industries Inc.
    302,280  
  29,500    
Integrys Energy Group Inc.
    768,180  
  7,000    
Maine & Maritimes Corp.
    245,000  
  15,000    
MGE Energy Inc.
    470,550  
  44,000    
NiSource Inc.
    431,200  
  13,000    
NorthWestern Corp.
    279,240  
  19,500    
OGE Energy Corp.
    464,490  
  7,000    
Otter Tail Corp.
    154,350  
  1,000    
PG&E Corp.
    38,220  
  16,000    
Pinnacle West Capital Corp.
    424,960  
  4,200    
PPL Corp.
    120,582  
  31,000    
Progress Energy Inc.
    1,124,060  
  32,000    
Public Service Enterprise Group Inc.
    943,040  
  18,000    
SCANA Corp.
    556,020  
  1,000    
TECO Energy Inc.
    11,150  
  30,000    
The AES Corp.†
    174,300  
  1,250    
The Empire District Electric Co.
    18,050  
  45,000    
The Southern Co.
    1,377,900  
  15,000    
Unisource Energy Corp.
    422,850  
  17,000    
Vectren Corp.
    358,530  
  41,000    
Westar Energy Inc.
    718,730  
  5,000    
Wisconsin Energy Corp.
    205,850  
  45,000    
Xcel Energy Inc.
    838,350  
       
 
     
       
 
    22,262,404  
       
 
     
       
Energy and Utilities: Natural Gas Integrated — 4.5%
       
       
Non U.S. Companies
       
  80,000    
Snam Rete Gas SpA
    429,405  
       
U.S. Companies
       
  50,000    
El Paso Corp.
    312,500  
  1,000    
Energen Corp.
    29,130  
  18,000    
National Fuel Gas Co.
    552,060  
  2,000    
ONEOK Inc.
    45,260  
  26,000    
Southern Union Co.
    395,720  
  30,000    
Spectra Energy Corp.
    424,200  
       
 
     
       
 
    2,188,275  
       
 
     
       
Energy and Utilities: Natural Gas Utilities — 4.4%
       
       
Non U.S. Companies
       
  1,500    
Enagas
    21,264  
  1,890    
GDF Suez
    64,911  
  11,454    
GDF Suez, ADR (a)
    391,154  
  6,867    
GDF Suez, Strips
    9  
See accompanying notes to schedule of investments.

2


 

THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2009 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
ENERGY AND UTILITIES (Continued)
       
       
Energy and Utilities: Natural Gas Utilities (Continued)
       
       
U.S. Companies
       
  16,000    
Atmos Energy Corp.
  $ 369,920  
  2,000    
Chesapeake Utilities Corp.
    60,960  
  20,000    
Nicor Inc.
    664,600  
  5,000    
Piedmont Natural Gas Co. Inc.
    129,450  
  10,000    
Southwest Gas Corp.
    210,700  
  5,000    
The Laclede Group Inc.
    194,900  
       
 
     
       
 
    2,107,868  
       
 
     
       
Energy and Utilities: Oil — 3.4%
       
       
Non U.S. Companies
       
  1,000    
Niko Resources Ltd.
    46,542  
  4,400    
PetroChina Co. Ltd., ADR
    350,680  
  13,500    
Petroleo Brasileiro SA, ADR
    411,345  
  9,000    
Royal Dutch Shell plc, Cl. A, ADR
    398,700  
       
U.S. Companies
       
  3,000    
Chevron Corp.
    201,720  
  2,000    
ConocoPhillips
    78,320  
  2,000    
Devon Energy Corp.
    89,380  
  1,000    
Exxon Mobil Corp.
    68,100  
       
 
     
       
 
    1,644,787  
       
 
     
       
Energy and Utilities: Services — 0.4%
       
       
Non U.S. Companies
       
  10,000    
ABB Ltd., ADR
    139,400  
       
U.S. Companies
       
  2,500    
Halliburton Co.
    38,675  
       
 
     
       
 
    178,075  
       
 
     
       
Energy and Utilities: Water — 3.6%
       
       
Non U.S. Companies
       
  1,500    
Consolidated Water Co. Ltd.
    16,275  
  49,000    
Severn Trent plc
    696,043  
  6    
Suez SA, Strips† (a)
    0  
  37,090    
United Utilities Group plc
    257,311  
       
U.S. Companies
       
  8,666    
Aqua America Inc.
    173,320  
  2,700    
California Water Service Group
    113,022  
  4,000    
Middlesex Water Co.
    57,600  
  17,000    
SJW Corp.
    432,310  
       
 
     
       
 
    1,745,881  
       
 
     
       
Diversified Industrial — 1.0%
       
       
Non U.S. Companies
       
  13,000    
Bouygues SA
    464,958  
       
U.S. Companies
       
  3,000    
Woodward Governor Co.
    33,540  
       
 
     
       
 
    498,498  
       
 
     
       
Environmental Services — 0.6%
       
       
Non U.S. Companies
       
  500    
Suez Environnement SA†
    7,357  
  12,000    
Veolia Environnement
    250,628  
       
 
     
       
 
    257,985  
       
 
     
                 
Shares/         Market  
Units         Value  
       
Equipment and Supplies — 0.1%
       
       
U.S. Companies
       
  800    
Flowserve Corp.
  $ 44,896  
       
 
     
       
Independent Power Producers and
       
       
Energy Traders — 0.4%
       
       
U.S. Companies
       
  12,000    
NRG Energy Inc.†
    211,200  
       
 
     
       
TOTAL ENERGY AND UTILITIES
    34,268,911  
       
 
     
       
COMMUNICATIONS — 19.3%
       
       
Cable and Satellite — 6.1%
       
       
Non U.S. Companies
       
  10,000    
Cogeco Inc.
    190,752  
  2,500    
Rogers Communications Inc., Cl. B
    57,075  
  5,400    
Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA
    28,770  
       
U.S. Companies
       
  25,000    
Cablevision Systems Corp., Cl. A
    323,500  
  32,000    
DISH Network Corp., Cl. A†
    355,520  
  3,600    
EchoStar Corp., Cl. A†
    53,388  
  4,580    
Liberty Global Inc., Cl. A†
    66,685  
  4,000    
Liberty Global Inc., Cl. C†
    56,520  
  80,000    
The DIRECTV Group Inc.†
    1,823,200  
       
 
     
       
 
    2,955,410  
       
 
     
       
Telecommunications — 11.9%
       
       
Non U.S. Companies
       
  26,000    
BCE Inc.
    517,400  
  2,000    
Belgacom SA
    62,710  
  2,102    
Bell Aliant Regional Communications Income Fund (a)(b)
    40,179  
  27,000    
BT Group plc, ADR
    301,590  
  35,000    
Deutsche Telekom AG, ADR
    432,250  
  6,000    
France Telecom SA, ADR
    135,960  
  6,000    
Manitoba Telecom Services Inc.
    152,046  
  3,500    
Orascom Telecom Holding SAE, GDR
    78,330  
  25,000    
Portugal Telecom SGPS SA
    193,644  
  15,000    
Royal KPN NV, ADR
    199,500  
  1,500    
Swisscom AG
    421,352  
  10,000    
Telecom Italia SpA
    12,901  
  16,000    
Telefonica SA, ADR
    953,920  
  14,000    
Telefonos de Mexico SAB de CV, Cl. L, ADR
    210,560  
  13,000    
Telmex Internacional SAB de CV, ADR
    119,210  
       
U.S. Companies
       
  31,000    
AT&T Inc.
    781,200  
  30,000    
Sprint Nextel Corp.†
    107,100  
  10,000    
Telephone & Data Systems Inc.
    265,100  
  25,000    
Verizon Communications Inc.
    755,000  
       
 
     
       
 
    5,739,952  
       
 
     
See accompanying notes to schedule of investments.

3


 

THE GABELLI GLOBAL UTILITY & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2009 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMUNICATIONS (Continued)
       
       
Wireless Communications — 1.3%
       
       
Non U.S. Companies
       
  2,000    
America Movil SAB de CV, Cl. L, ADR
  $ 54,160  
  10,000    
Millicom International Cellular SA
    370,400  
  1,600    
Mobile TeleSystems OJSC, ADR
    47,872  
  12,000    
Vimpel-Communications, ADR
    78,480  
  5,000    
Vodafone Group plc, ADR
    87,100  
       
 
     
       
 
    638,012  
       
 
     
       
TOTAL COMMUNICATIONS
    9,333,374  
       
 
     
       
OTHER — 2.1%
       
       
Aerospace — 0.8%
       
       
Non U.S. Companies
       
  90,000    
Rolls-Royce Group plc†
    379,660  
       
 
     
       
Building and Construction — 0.1%
       
       
Non U.S. Companies
       
  400    
Acciona SA
    41,160  
       
 
     
       
Business Services — 0.0%
       
       
Non U.S. Companies
       
  3,700    
Sistema JSFC, GDR (b)
    21,164  
       
 
     
       
Entertainment — 0.6%
       
       
Non U.S. Companies
       
  11,000    
Vivendi
    291,197  
       
 
     
       
Metals and Mining — 0.3%
       
       
Non U.S. Companies
       
  6,400    
Compania de Minas Buenaventura SA, ADR
    153,472  
       
 
     
       
Real Estate — 0.1%
       
       
Non U.S. Companies
       
  5,000    
Brookfield Asset Management Inc., Cl. A
    68,900  
       
 
     
       
Transportation — 0.2%
       
       
U.S. Companies
       
  3,500    
GATX Corp.
    70,805  
       
 
     
       
TOTAL OTHER
    1,026,358  
       
 
     
       
TOTAL COMMON STOCKS
    44,628,643  
       
 
     
       
CONVERTIBLE PREFERRED STOCKS — 0.2%
       
       
COMMUNICATIONS — 0.1%
       
       
Telecommunications — 0.1%
       
       
U.S. Companies
       
  2,000    
Cincinnati Bell Inc., 6.750% Cv. Pfd., Ser. B
    53,740  
       
 
     
       
OTHER — 0.1%
       
       
Transportation — 0.1%
       
       
U.S. Companies
       
  200    
GATX Corp., $2.50 Cv. Pfd.
    59,874  
       
 
     
       
TOTAL CONVERTIBLE PREFERRED STOCKS
    113,614  
       
 
     
       
WARRANTS — 0.1%
       
       
COMMUNICATIONS — 0.1%
       
       
Wireless Communications — 0.1%
       
       
Non U.S. Companies
       
  2,000    
Bharti Airtel Ltd., expire 09/19/13† (b)
  $ 24,667  
       
 
     
                 
Principal              
Amount              
       
CONVERTIBLE CORPORATE BONDS — 0.4%
       
       
COMMUNICATIONS — 0.2%
       
       
Communications Equipment — 0.2%
       
       
U.S. Companies
       
$ 100,000    
Agere Systems Inc., Sub. Deb. Cv., 6.500%, 12/15/09
    100,875  
       
 
     
       
OTHER — 0.2%
       
       
Real Estate — 0.2%
       
       
U.S. Companies
       
  350,000    
Palm Harbor Homes Inc., Cv., 3.250%, 05/15/24
    87,938  
       
 
     
       
TOTAL CONVERTIBLE CORPORATE BONDS
    188,813  
       
 
     
       
U.S. GOVERNMENT OBLIGATIONS — 6.9%
       
       
U.S. Treasury Bills — 4.5%
       
  2,189,000    
U.S. Treasury Bills, 0.091% to 0.203%††, 04/02/09 to 06/25/09
    2,188,371  
       
 
     
       
U.S. Treasury Notes — 2.4%
       
  1,150,000    
4.500%, 04/30/09
    1,153,039  
       
 
     
       
TOTAL U.S. GOVERNMENT OBLIGATIONS
    3,341,410  
       
 
     
TOTAL INVESTMENTS — 100.0%
(Cost $55,231,164)
  $ 48,297,147  
       
 
     
       
Aggregate book cost
  $ 55,231,164  
       
 
     
       
Gross unrealized appreciation
  $ 3,077,221  
       
Gross unrealized depreciation
    (10,011,238 )
       
 
     
       
Net unrealized appreciation/(depreciation)
  $ (6,934,017 )
       
 
     
 
(a)   Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about the company and reviewing the valuation of comparable securities and other factors on a regular basis. At March 31, 2009, the market value of fair valued securities amounted to $431,333 or 0.89% of total investments.
 
(b)   Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2009, the market value of Rule 144A securities amounted to $86,010 or 0.18% of total investments.
 
  Non-income producing security.
 
††   Represents annualized yield at date of purchase.
 
ADR   American Depositary Receipt.
 
GDR   Global Depositary Receipt.
See accompanying notes to schedule of investments.

4


 

THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
1. Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC, the Adviser.
Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of 60 days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than 60 days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are fair valued as determined by the Board.
Statement of Financial Accounting Standard No. 157, “Fair Value Measurements” (“SFAS 157”) clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. The three levels of the fair value hierarchy under SFAS 157 are described below:
    Level 1 — quoted prices in active markets for identical securities;
 
    Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and
 
    Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments and other financial instruments by inputs used to value the Fund’s investments as of March 31, 2009 is as follows:
                 
    Investments in     Other Financial Instruments  
    Securities     (Unrealized  
    (Market Value)     Appreciation)*  
Valuation Inputs   Assets     Assets  
Level 1 — Quoted Prices
  $ 44,702,078        
Level 2 — Other Significant Observable Inputs
    3,595,069     $ 15,436  
 
           
Total
  $ 48,297,147     $ 15,436  
 
           
 
*   Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards, and swaps which are valued at the unrealized appreciation/depreciation on the investment.
There were no Level 3 investments held at December 31, 2008 or March 31, 2009.

5


 

THE GABELLI GLOBAL UTILITY & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
Statement of Financial Accounting Standard No. 161, “Disclosures about Derivative Instruments and Hedging Activities” clarifies the financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. As of March 31, 2009, the Fund did not hold any significant investments in derivatives.
2. Swap Agreements. The Fund may enter into equity and contract for difference swap transactions. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In a swap, a set of future cash flows are exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. There is no assurance that the swap contract counterparties will be able to meet their obligations pursuant to the swap contracts, or that, in the event of default, the Fund will succeed in pursuing contractual remedies. The Fund thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to the swap contracts. The creditworthiness of the swap contract counterparties is closely monitored in order to minimize the risk. Depending on the general state of short-term interest rates and the returns of the Fund’s portfolio securities at that point in time, such a default could negatively affect the Fund’s ability to make dividend payments. In addition, at the time an equity swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction. If this occurs, it could have a negative impact on the Fund’s ability to make dividend payments.
The use of derivative instruments involves, to varying degrees, elements of market and counterparty risk in excess of the amount recognized below.
Effective March 16, 2008, Bear, Stearns International Limited entered into a Guaranty Agreement with JPMorgan Chase & Co., whereby JPMorgan Chase & Co. unconditionally guaranteed the due and punctual payment of certain liabilities of Bear, Stearns International Limited, including the current liabilities of Bear, Stearns International Limited to the Fund. As of March 31, 2009, the Fund held a contract for difference swap with Bear, Stearns International Limited which is covered by the JPMorgan Chase & Co. Guaranty Agreement as of the date of the report. Details of the swap at March 31, 2009 are as follows:
                 
                Net
Notional   Equity Security   Interest Rate/   Termination   Unrealized
Amount   Received   Equity Security Paid   Date   Appreciation
 
  Market Value   Overnight LIBOR plus 75 bps plus        
 
  Appreciation on:   Market Value Depreciation on:        
$195,426 (50,000 Shares)
  Rolls-Royce Group plc   Rolls-Royce Group plc   03/11/10   $15,436
3. Tax Information. Under the current tax law, capital losses related to securities and foreign currency realized after October 31 and prior to the Fund’s fiscal year end may be treated as occurring on the first day of the following year. For the year ended December 31, 2008, the Fund deferred capital losses of $431,743.
                 
    % of        
    Market     Market  
Geographic Diversification   Value     Value  
North America
    68.2 %   $ 32,925,654  
Europe
    21.5       10,408,313  
Japan
    5.1       2,450,573  
Latin America
    2.9       1,402,922  
Asia/Pacific
    2.1       1,031,355  
Africa/Middle East
    0.2       78,330  
 
           
Total Investments
    100.0 %   $ 48,297,147  
 
           

6


 

(FLAGS)
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL UTILITY & INCOME TRUST
One Corporate Center, Rye, NY 10580-1422

 
Trustees
Anthony J. Colavita
Attorney-at-Law,
Anthony J. Colavita, P.C.
 
James P. Conn
Former Managing Director &
Chief Investment Officer,
Financial Security Assurance Holdings Ltd.
 
Mario d’Urso
Former Italian Senator
 
Vincent D. Enright
Former Senior Vice President &
Chief Financial Officer,
KeySpan Corp.
 
Michael J. Melarkey
Attorney-at-Law,
Avansino, Melarkey, Knobel & Mulligan
 
Salvatore M. Salibello
Certified Public Accountant,
Salibello & Broder LLP
 
Salvatore J. Zizza
Chairman, Zizza & Co., Ltd.
 
Officers
Bruce N. Alpert
President
 
Peter D. Goldstein
Chief Compliance Officer
 
Agnes Mullady
Treasurer & Secretary
 
David I. Schachter
Vice President & Ombudsman
 
Investment Adviser
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
 
Custodian
State Street Bank and Trust Company
 
Counsel
Skadden, Arps, Slate, Meagher & Flom, LLP
 
Transfer Agent and Registrar
Computershare Trust Company, N.A.
 
Stock Exchange Listing
         
    Common
NYSE Amex–Symbol:
  GLU
Shares Outstanding:
    3,050,236  


The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “Specialized Equity Funds.”
The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

For general information about the Gabelli Funds, call 800-GABELLI (800-422-3554), fax us at 914-921-5118, visit Gabelli Funds’ Internet homepage at: www.gabelli.com, or e-mail us at: closedend@gabelli.com

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

 


 

(IMAGE)


 

Item 2. Controls and Procedures.
  (a)   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
  (b)   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 


 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The Gabelli Global Utility & Income Trust
         
By (Signature and Title)*
  /s/ Bruce N. Alpert
 
Bruce N. Alpert, Principal Executive Officer
   
Date 5/27/09
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 5/27/09
         
By (Signature and Title)*
  /s/ Agnes Mullady
 
Agnes Mullady, Principal Financial Officer and Treasurer
   
Date 5/27/09
 
*   Print the name and title of each signing officer under his or her signature.