nvcsrs
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 811-21969
The Gabelli Global Deal Fund
(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)
registrants telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: June 30, 2010
Form N-CSR is to be used by management investment companies to file reports with the Commission not
later than 10 days after the transmission to stockholders of any report that is required to be
transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR
270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission
will make this information public. A registrant is not required to respond to the collection of
information contained in Form N-CSR unless the Form displays a currently valid Office of Management
and Budget (OMB) control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the burden to Secretary,
Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed
this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
The Gabelli Global Deal Fund
Semi-Annual Report
June 30, 2010
![(PHOTO OF MARIO J. GABELLI)](g06322g0632201.jpg)
Mario J. Gabelli, CFA
To Our Shareholders,
The Gabelli Global Deal Funds (the Fund) net asset value (NAV) total return was (2.1)%
during the semi-annual period ended June 30, 2010, compared with a return of 0.1% for the 3 Month
U.S. Treasury Bill Index. The total return for the Funds publicly traded shares was (4.3)% during
the first half of the year. For the one year period ended June 30, 2010, the Funds NAV total
return was 1.5% and the total return for the Funds publicly traded shares was 7.3%, compared with
a return of 0.2% for the 3 Month U.S. Treasury Bill Index. On June 30, 2010, the Funds NAV per
share was $14.88, while the price of the publicly traded shares closed at $13.17 on the New York
Stock Exchange (NYSE).
Enclosed are the financial statements and the investment portfolio as of June 30, 2010.
Comparative Results
Average Annual Returns through June 30, 2010 (a) (Unaudited)
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Since |
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Year to |
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Inception |
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Quarter |
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Date |
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1 Year |
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3 Year |
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(01/31/07) |
Gabelli Global Deal Fund |
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NAV Total Return (b) |
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(2.76 |
)% |
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(2.09 |
)% |
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1.49 |
% |
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(0.05 |
)% |
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0.81 |
% |
Investment Total Return (c) |
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(5.65 |
) |
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(4.33 |
) |
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7.26 |
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(1.63 |
) |
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(3.07 |
) |
3 Month U.S. Treasury Bill Index |
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0.04 |
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0.05 |
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0.16 |
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1.57 |
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2.00 |
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(a) |
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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 3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the
beginning of the month and held for a full month. At the end of the month, that issue is sold and
rolled into the outstanding Treasury Bill that matures closest to, but not beyond three months from
the re-balancing date. To qualify for selection, an issue must have settled on or before the
re-balancing (month end) date. Dividends are considered reinvested except for the 3 Month U.S.
Treasury Bill Index. You cannot invest directly in an index. |
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(b) |
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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. |
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(c) |
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Total returns and average annual returns reflect changes in closing market values on the New
York Stock Exchange and reinvestment of distributions. Since inception return is based on an
initial offering price of $20.00. |
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 content of the portfolio managers 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 DEAL FUND
Summary of Portfolio Holdings (Unaudited)
The following table presents portfolio holdings as a percent of total investments as of June
30, 2010:
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Long Positions |
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U.S. Government Obligations |
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33.3 |
% |
Health Care |
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26.8 |
% |
Computer Software and Services |
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9.1 |
% |
Energy and Utilities |
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4.4 |
% |
Business Services |
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4.3 |
% |
Diversified Industrial |
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3.7 |
% |
Telecommunications |
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2.5 |
% |
Commercial Services |
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2.3 |
% |
Electronics |
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2.2 |
% |
Financial Services |
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1.8 |
% |
Computer Hardware |
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1.6 |
% |
Food and Beverage |
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1.3 |
% |
Media |
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1.2 |
% |
Metals and Mining |
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1.1 |
% |
Entertainment |
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0.8 |
% |
Specialty Chemicals |
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0.7 |
% |
Transportation |
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0.7 |
% |
Retail |
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0.4 |
% |
Restaurants |
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0.4 |
% |
Aerospace and Defense |
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0.3 |
% |
Consumer Products |
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0.2 |
% |
Automotive Rental/Equipment |
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0.2 |
% |
Building and Construction |
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0.2 |
% |
Machinery |
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0.1 |
% |
Aerospace |
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0.1 |
% |
Semiconductors |
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0.1 |
% |
Cable and Satellite |
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0.1 |
% |
Equipment and Supplies |
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0.1 |
% |
Hotels and Gaming |
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0.0 |
% |
Materials |
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0.0 |
% |
Real Estate |
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0.0 |
% |
Publishing |
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0.0 |
% |
Environmental Services |
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0.0 |
% |
Educational Services |
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0.0 |
% |
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100.0 |
% |
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Short Positions |
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Energy and Utilities |
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(0.0 |
)% |
The Fund files a complete schedule of portfolio holdings with the Securities and Exchange
Commission (the SEC) for the first and third quarters of each fiscal year on Form N-Q, the last
of which was filed for the quarter ended March 31, 2010. Shareholders may obtain this information
at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Funds Form N-Q is
available on the SECs website at www.sec.gov and may also be reviewed and copied at the SECs
Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
Proxy Voting
The Fund files Form N-PX with its complete proxy voting record for the twelve months ended
June 30th, no later than August 31st of each year. A description of the Funds proxy voting
policies, procedures, and how the Fund voted proxies relating to portfolio securities is available
without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The
Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SECs website at
www.sec.gov.
Shareholder Meeting May 17, 2010 Final Results
The Funds Annual Meeting of Shareholders was held on May 17, 2010 at the Greenwich Library in
Greenwich, Connecticut. At that meeting, common and preferred shareholders, voting together as a
single class, elected Edward T. Tokar and Salvatore J. Zizza as Trustees of the Fund. A total of
18,803,713 votes and 17,585,848 votes were cast in favor of each Trustee and a total of 2,029,304
votes and 3,247,169 votes were withheld for each Trustee, respectively. In addition, preferred
shareholders, voting as a separate class, elected Anthony J. Colavita as Trustee of the Fund. A
total of 930,154 votes were cast in favor of this Trustee and a total of 342,484 votes were
withheld for this Trustee.
James P. Conn, Clarence A. Davis, Arthur V. Ferrara, Mario J. Gabelli, Mario dUrso, and
Michael J. Melarkey continue to serve in their capacities as Trustees of the Fund.
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We thank you for your participation and appreciate your continued support. |
2
THE GABELLI GLOBAL DEAL FUND
SCHEDULE OF INVESTMENTS
June 30, 2010 (Unaudited)
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Market |
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Shares |
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Cost |
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Value |
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COMMON STOCKS 65.8% |
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Aerospace and Defense 0.3% |
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19,000 |
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Argon ST Inc. |
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$ |
651,328 |
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$ |
651,510 |
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79,000 |
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The Allied Defense
Group Inc. |
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568,195 |
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298,620 |
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15,000 |
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VT Group plc |
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163,354 |
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173,689 |
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1,382,877 |
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1,123,819 |
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Automotive Rental/Equipment 0.2% |
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20,000 |
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Dollar Thrifty Automotive
Group Inc. |
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859,729 |
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852,200 |
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Building and Construction 0.2% |
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40,000 |
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Seacliff Construction Corp. |
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647,755 |
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642,525 |
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Business Services 4.3% |
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8,000 |
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Acxiom Corp. |
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97,703 |
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117,520 |
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380,000 |
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Bowne & Co. Inc. |
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4,280,468 |
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4,263,600 |
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90,000 |
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Clear Channel Outdoor
Holdings Inc., Cl. A |
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631,561 |
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781,200 |
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80,000 |
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Diebold Inc. |
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2,951,772 |
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2,180,000 |
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20,000 |
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Scott Wilson Group plc |
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78,433 |
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79,486 |
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50,000 |
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SonicWALL Inc. |
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563,338 |
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587,500 |
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250,000 |
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Stanley Inc. |
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9,269,401 |
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9,345,000 |
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17,872,676 |
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17,354,306 |
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Cable and Satellite 0.1% |
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14,000 |
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British Sky Broadcasting
Group plc |
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146,229 |
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146,526 |
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25,000 |
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Zon Multimedia Servicos de
Telecomunicacoes e
Multimedia SGPS SA |
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245,750 |
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97,278 |
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391,979 |
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243,804 |
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Commercial Services 2.3% |
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525,700 |
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DynCorp International Inc.,
Cl. A |
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9,088,778 |
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9,210,264 |
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Computer Hardware 1.1% |
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622,200 |
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Palm Inc. |
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3,542,250 |
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3,540,318 |
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26,000 |
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SanDisk Corp. |
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257,371 |
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1,093,820 |
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3,799,621 |
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4,634,138 |
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Computer Software and Services 9.1% |
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700,000 |
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CyberSource Corp. |
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17,965,929 |
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17,871,000 |
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30,000 |
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Double-Take Software Inc. |
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308,962 |
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314,700 |
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100,000 |
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Global IP Solutions
Holding AB |
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|
199,790 |
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192,847 |
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101,700 |
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Intelligroup Inc. |
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470,965 |
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470,871 |
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18,000 |
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Mentor Graphics Corp. |
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136,156 |
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159,300 |
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5,000 |
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Novell Inc. |
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29,685 |
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28,400 |
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21,600 |
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Soapstone Networks Inc. |
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8,730 |
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|
454 |
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260,000 |
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Sybase Inc. |
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16,749,967 |
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16,811,600 |
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84,000 |
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Yahoo! Inc. |
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2,264,132 |
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1,161,720 |
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38,134,316 |
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37,010,892 |
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Consumer Products 0.2% |
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30,000 |
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Harman International
Industries Inc. |
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1,115,698 |
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896,700 |
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8,000 |
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Heelys Inc. |
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20,860 |
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19,440 |
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1,136,558 |
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916,140 |
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Diversified Industrial 3.7% |
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450,000 |
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Myers Industries Inc. |
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9,813,283 |
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3,640,500 |
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65,000 |
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Sperian Protection |
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9,185,538 |
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9,140,824 |
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60,000 |
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Tyco International Ltd. |
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2,357,003 |
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2,113,800 |
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21,355,824 |
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14,895,124 |
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Educational Services 0.0% |
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1,000 |
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Corinthian Colleges Inc. |
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7,515 |
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9,850 |
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Electronics 2.2% |
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211,700 |
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Alliance Semiconductor
Corp. |
|
|
1,041,598 |
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|
45,516 |
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|
103,000 |
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Bel Fuse Inc., Cl. A |
|
|
3,176,068 |
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|
|
1,709,800 |
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|
896,500 |
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Bell Microproducts Inc. |
|
|
6,236,586 |
|
|
|
6,257,570 |
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|
25,000 |
|
|
International Rectifier Corp. |
|
|
397,307 |
|
|
|
465,250 |
|
|
20,000 |
|
|
Virage Logic Corp. |
|
|
237,380 |
|
|
|
237,800 |
|
|
50,000 |
|
|
Zygo Corp. |
|
|
460,352 |
|
|
|
405,500 |
|
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11,549,291 |
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|
9,121,436 |
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Energy and Utilities 4.3% |
|
|
|
|
|
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|
|
110,000 |
|
|
Allegheny Energy Inc. |
|
|
2,377,599 |
|
|
|
2,274,800 |
|
|
5,000 |
|
|
Arena Resources Inc. |
|
|
176,405 |
|
|
|
159,500 |
|
|
20,000 |
|
|
Arrow Energy Ltd. |
|
|
91,828 |
|
|
|
81,650 |
|
|
30,000 |
|
|
Constellation Energy
Group Inc. |
|
|
699,777 |
|
|
|
967,500 |
|
|
450,000 |
|
|
Dragon Oil plc |
|
|
2,767,018 |
|
|
|
2,743,164 |
|
|
278,000 |
|
|
Endesa SA |
|
|
11,886,429 |
|
|
|
5,947,478 |
|
|
60,000 |
|
|
NorthWestern Corp. |
|
|
1,645,895 |
|
|
|
1,572,000 |
|
|
100,000 |
|
|
NRG Energy Inc. |
|
|
2,355,635 |
|
|
|
2,121,000 |
|
|
1,000 |
|
|
Origin Energy Ltd. |
|
|
15,738 |
|
|
|
12,576 |
|
|
2,000 |
|
|
Prosafe Production
Public Ltd. |
|
|
4,623 |
|
|
|
4,072 |
|
|
190,000 |
|
|
Scorpion Offshore Ltd. |
|
|
1,190,431 |
|
|
|
1,179,517 |
|
|
6,000 |
|
|
Smith International Inc. |
|
|
246,308 |
|
|
|
225,900 |
|
|
10,000 |
|
|
Southwest Water Co. |
|
|
103,775 |
|
|
|
104,800 |
|
|
100,000 |
|
|
UTS Energy Corp. |
|
|
110,747 |
|
|
|
193,509 |
|
|
100,000 |
|
|
WesternZagros
Resources Ltd. |
|
|
303,795 |
|
|
|
44,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,976,003 |
|
|
|
17,631,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entertainment 0.8% |
|
|
|
|
|
|
|
|
|
10,000 |
|
|
Cedar Fair LP |
|
|
112,440 |
|
|
|
123,200 |
|
|
30,000 |
|
|
Madison Square Garden Inc.,
Cl. A |
|
|
495,327 |
|
|
|
590,100 |
|
|
285,000 |
|
|
Take-Two Interactive
Software Inc. |
|
|
4,734,898 |
|
|
|
2,565,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,342,665 |
|
|
|
3,278,300 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL DEAL FUND
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Shares |
|
|
|
|
Cost |
|
|
Value |
|
|
|
|
|
COMMON STOCKS (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Services 0.0% |
|
|
|
|
|
|
|
|
|
1,000 |
|
|
Waste Services Inc. |
|
$ |
7,798 |
|
|
$ |
11,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment and Supplies 0.1% |
|
|
|
|
|
|
|
|
|
4,000 |
|
|
The Middleby Corp. |
|
|
95,182 |
|
|
|
212,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services 1.8% |
|
|
|
|
|
|
|
|
|
10,000 |
|
|
Climate Exchange plc |
|
|
109,707 |
|
|
|
111,609 |
|
|
50,000 |
|
|
GLG Partners Inc. |
|
|
219,100 |
|
|
|
219,000 |
|
|
165,000 |
|
|
Interactive Data Corp. |
|
|
5,422,359 |
|
|
|
5,507,700 |
|
|
120,000 |
|
|
SLM Corp. |
|
|
2,473,231 |
|
|
|
1,246,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,224,397 |
|
|
|
7,085,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and Beverage 1.3% |
|
|
|
|
|
|
|
|
|
100,000 |
|
|
American Italian Pasta Co.,
Cl. A |
|
|
5,275,380 |
|
|
|
5,287,000 |
|
|
175,000 |
|
|
China Huiyuan Juice
Group Ltd. |
|
|
171,825 |
|
|
|
120,683 |
|
|
1,000 |
|
|
Reddy Ice Holdings Inc. |
|
|
5,181 |
|
|
|
3,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,452,386 |
|
|
|
5,410,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care 26.8% |
|
|
|
|
|
|
|
|
|
4,000 |
|
|
Abraxis BioScience Inc. |
|
|
296,005 |
|
|
|
296,800 |
|
|
30,500 |
|
|
Alcon Inc. |
|
|
4,712,133 |
|
|
|
4,519,795 |
|
|
16,000 |
|
|
ArthroCare Corp. |
|
|
138,864 |
|
|
|
490,400 |
|
|
93,800 |
|
|
ATS Medical Inc. |
|
|
369,543 |
|
|
|
372,386 |
|
|
3,000 |
|
|
Biogen Idec Inc. |
|
|
159,613 |
|
|
|
142,350 |
|
|
44,000 |
|
|
Crucell NV, ADR |
|
|
879,204 |
|
|
|
806,080 |
|
|
2,000 |
|
|
Enzon Pharmaceuticals Inc. |
|
|
17,870 |
|
|
|
21,300 |
|
|
800,000 |
|
|
ev3 Inc. |
|
|
17,833,226 |
|
|
|
17,928,000 |
|
|
400,000 |
|
|
HealthTronics Inc. |
|
|
1,920,858 |
|
|
|
1,932,000 |
|
|
44,500 |
|
|
Indevus Pharmaceuticals Inc.,
Escrow (a) |
|
|
0 |
|
|
|
48,950 |
|
|
3,000 |
|
|
inVentiv Health Inc. |
|
|
75,555 |
|
|
|
76,800 |
|
|
1,100,000 |
|
|
Javelin Pharmaceuticals Inc. |
|
|
2,430,645 |
|
|
|
2,420,000 |
|
|
8,000 |
|
|
Life Technologies Corp. |
|
|
277,916 |
|
|
|
378,000 |
|
|
345,000 |
|
|
Millipore Corp. |
|
|
36,488,135 |
|
|
|
36,794,250 |
|
|
200,000 |
|
|
National Dentex Corp. |
|
|
3,391,476 |
|
|
|
3,370,000 |
|
|
44,000 |
|
|
Odyssey HealthCare Inc. |
|
|
1,167,716 |
|
|
|
1,175,680 |
|
|
860,000 |
|
|
Phase Forward Inc. |
|
|
14,454,613 |
|
|
|
14,344,800 |
|
|
32,000 |
|
|
Psychiatric Solutions Inc. |
|
|
1,040,223 |
|
|
|
1,047,040 |
|
|
997,600 |
|
|
SenoRx Inc. |
|
|
10,852,768 |
|
|
|
10,953,648 |
|
|
310,400 |
|
|
Somanetics Corp. |
|
|
7,728,624 |
|
|
|
7,744,480 |
|
|
20,000 |
|
|
Talecris Biotherapeutics
Holdings Corp. |
|
|
413,858 |
|
|
|
422,000 |
|
|
20,000 |
|
|
Trimeris Inc. |
|
|
71,450 |
|
|
|
43,200 |
|
|
1,000 |
|
|
Valeant Pharmaceuticals
International Inc. |
|
|
45,740 |
|
|
|
52,290 |
|
|
24,000 |
|
|
Virtual Radiologic Corp. |
|
|
407,518 |
|
|
|
411,840 |
|
|
225,000 |
|
|
WuXi PharmaTech
(Cayman) Inc., ADR |
|
|
4,213,278 |
|
|
|
3,591,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
109,386,831 |
|
|
|
109,383,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels and Gaming 0.0% |
|
|
|
|
|
|
|
|
|
15,000 |
|
|
MGM Resorts
International |
|
|
39,300 |
|
|
|
144,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery 0.1% |
|
|
|
|
|
|
|
|
|
40,000 |
|
|
Sauer-Danfoss Inc. |
|
|
531,000 |
|
|
|
488,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Materials 0.0% |
|
|
|
|
|
|
|
|
|
6,000 |
|
|
CIMPOR Cimentos de
Portugal SGPS SA |
|
|
45,956 |
|
|
|
33,912 |
|
|
5,000 |
|
|
Intertape Polymer
Group Inc. |
|
|
23,400 |
|
|
|
10,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69,356 |
|
|
|
44,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media 1.2% |
|
|
|
|
|
|
|
|
|
68,000 |
|
|
APN News & Media Ltd. |
|
|
319,421 |
|
|
|
113,619 |
|
|
205,000 |
|
|
Cablevision Systems Corp.,
Cl. A |
|
|
4,600,501 |
|
|
|
4,922,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,919,922 |
|
|
|
5,035,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals and Mining 1.1% |
|
|
|
|
|
|
|
|
|
28,000 |
|
|
Camino Minerals Corp. |
|
|
5,242 |
|
|
|
6,838 |
|
|
20,000 |
|
|
Forsys Metals Corp. |
|
|
99,402 |
|
|
|
44,714 |
|
|
400,000 |
|
|
Gerdau Ameristeel Corp. |
|
|
4,403,070 |
|
|
|
4,360,000 |
|
|
5,000 |
|
|
Lonmin plc |
|
|
73,737 |
|
|
|
105,408 |
|
|
9,000 |
|
|
Xstrata plc |
|
|
53,675 |
|
|
|
119,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,635,126 |
|
|
|
4,636,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing 0.0% |
|
|
|
|
|
|
|
|
|
136,000 |
|
|
SCMP Group Ltd. |
|
|
48,079 |
|
|
|
22,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate 0.0% |
|
|
|
|
|
|
|
|
|
5,000 |
|
|
Eco Business-Immobilien
AG |
|
|
39,976 |
|
|
|
39,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants 0.4% |
|
|
|
|
|
|
|
|
|
120,000 |
|
|
CKE Restaurants Inc. |
|
|
1,477,300 |
|
|
|
1,503,600 |
|
|
1,000 |
|
|
Landrys Restaurants Inc. |
|
|
14,657 |
|
|
|
24,460 |
|
|
12,000 |
|
|
Rubios Restaurants Inc. |
|
|
100,868 |
|
|
|
101,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,592,825 |
|
|
|
1,629,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail 0.4% |
|
|
|
|
|
|
|
|
|
50,000 |
|
|
Caseys General Stores Inc. |
|
|
1,817,029 |
|
|
|
1,745,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Semiconductors 0.1% |
|
|
|
|
|
|
|
|
|
33,000 |
|
|
Emulex Corp. |
|
|
300,023 |
|
|
|
302,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Chemicals 0.5% |
|
|
|
|
|
|
|
|
|
9,000 |
|
|
A. Schulman Inc. |
|
|
235,080 |
|
|
|
170,640 |
|
|
1,500 |
|
|
Airgas Inc. |
|
|
90,499 |
|
|
|
93,300 |
|
|
34,500 |
|
|
Ashland Inc. |
|
|
470,380 |
|
|
|
1,601,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
795,959 |
|
|
|
1,865,430 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL DEAL FUND
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Shares |
|
|
|
|
Cost |
|
|
Value |
|
|
|
|
|
COMMON STOCKS (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications 2.5% |
|
|
|
|
|
|
|
|
|
710,000 |
|
|
Asia Satellite
Telecommunications
Holdings Ltd. |
|
$ |
1,579,364 |
|
|
$ |
1,079,557 |
|
|
80,000 |
|
|
BCE Inc. |
|
|
1,654,571 |
|
|
|
2,341,600 |
|
|
65,000 |
|
|
Portugal Telecom SGPS SA |
|
|
686,683 |
|
|
|
650,191 |
|
|
413,200 |
|
|
RCN Corp. |
|
|
6,135,081 |
|
|
|
6,119,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,055,699 |
|
|
|
10,190,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation 0.7% |
|
|
|
|
|
|
|
|
|
240,000 |
|
|
Arriva plc |
|
|
2,703,965 |
|
|
|
2,743,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON
STOCKS |
|
|
286,260,440 |
|
|
|
267,916,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RIGHTS 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Health Care 0.0% |
|
|
|
|
|
|
|
|
|
6,000 |
|
|
Fresenius Kabi Pharmaceuticals
Holding Inc., CVR,
expire 12/31/10 |
|
|
1 |
|
|
|
786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
|
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONVERTIBLE CORPORATE BONDS 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace 0.1% |
|
|
|
|
|
|
|
|
$ |
500,000 |
|
|
GenCorp Inc., Sub. Deb. Cv.,
4.063%, 12/31/39 (b) |
|
|
383,996 |
|
|
|
416,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computer Hardware 0.5% |
|
|
|
|
|
|
|
|
|
2,000,000 |
|
|
SanDisk Corp., Cv.,
1.000%, 05/15/13 |
|
|
1,628,654 |
|
|
|
1,787,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics 0.0% |
|
|
|
|
|
|
|
|
|
100,000 |
|
|
Bell Microproducts Inc.,
Cv., Ser. B,
3.750%, 03/05/24 |
|
|
99,601 |
|
|
|
99,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Chemicals 0.2% |
|
|
|
|
|
|
|
|
|
1,000,000 |
|
|
Ferro Corp., Cv.,
6.500%, 08/15/13 |
|
|
488,740 |
|
|
|
968,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CONVERTIBLE
CORPORATE BONDS |
|
|
2,600,991 |
|
|
|
3,272,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATE BONDS 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Industrial 0.0% |
|
|
|
|
|
|
|
|
|
150,000 |
|
|
Park-Ohio Industries Inc.,
Sub. Deb.,
8.375%, 11/15/14 |
|
|
79,201 |
|
|
|
139,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities 0.1% |
|
|
|
|
|
|
|
|
|
600,000 |
|
|
Texas Competitive Electric
Holdings
Co. LLC, Ser. B (STEP),
10.250%, 11/01/15 |
|
|
382,804 |
|
|
|
399,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CORPORATE
BONDS |
|
|
462,005 |
|
|
|
538,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GOVERNMENT OBLIGATIONS 33.3% |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Bills 33.1% |
|
|
|
|
|
|
|
|
|
134,879,000 |
|
|
U.S. Treasury Bills,
0.066% to 0.244%,
07/29/10 to 12/16/10 |
|
|
134,826,066 |
|
|
|
134,828,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Cash Management Bills 0.2% |
|
|
|
|
|
|
|
|
|
1,000,000 |
|
|
U.S. Treasury Cash Management Bill,
0.137%, 07/15/10 (c) |
|
|
999,948 |
|
|
|
999,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL U.S. GOVERNMENT
OBLIGATIONS |
|
|
135,826,014 |
|
|
|
135,828,078 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS 100.0% |
|
$ |
425,149,451 |
|
|
|
407,556,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SECURITIES SOLD SHORT
(Proceeds received $213,082) |
|
|
|
|
|
|
(192,749 |
) |
Other Assets and Liabilities (Net) |
|
|
|
|
|
|
3,725,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED STOCK
(1,920,242 preferred shares outstanding) |
|
|
|
|
|
|
(96,012,100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS COMMON SHARES
(21,177,810 common shares outstanding) |
|
|
|
|
|
$ |
315,077,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE PER COMMON SHARE
($315,077,183 ÷ 21,177,810 shares outstanding) |
|
|
|
|
|
$ |
14.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Shares |
|
|
|
|
Proceeds |
|
|
Value |
|
|
|
|
|
COMMON STOCKS SOLD SHORT (0.0)% |
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities 0.0% |
|
|
|
|
|
|
|
|
|
3,483 |
|
|
Schlumberger Ltd. |
|
$ |
213,082 |
|
|
$ |
192,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
June 30, 2010, the market value of the fair valued
security amounted to $48,950 or 0.01% 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 June 30, 2010, the market value of the Rule 144A security amounted to
$416,250 or 0.10% of total investments. |
|
(c) |
|
At June 30, 2010, $1,000,000 of the principal amount
was pledged as collateral for for common stocks sold short. |
|
|
|
Non-income producing security. |
|
|
|
Represents annualized yield at
date of purchase. |
ADR American Depositary Receipt
CVR Contingent Value Right
STEP Step coupon bond. The rate disclosed is that in effect at June 30, 2010.
|
|
|
|
|
|
|
|
|
|
|
% of |
|
|
|
|
|
|
Market |
|
|
Market |
|
Geographic Diversification |
|
Value |
|
|
Value |
|
North America |
|
|
91.2 |
% |
|
$ |
371,586,321 |
|
Europe |
|
|
7.3 |
|
|
|
29,764,722 |
|
Asia/Pacific |
|
|
1.0 |
|
|
|
3,919,528 |
|
Latin America |
|
|
0.5 |
|
|
|
2,281,953 |
|
Africa/Middle East |
|
|
0.0 |
|
|
|
4,072 |
|
|
|
|
|
|
|
|
Total Investments |
|
|
100.0 |
% |
|
$ |
407,556,596 |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL DEAL FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2010 (Unaudited)
|
|
|
|
|
Assets: |
|
|
|
|
Investments, at value (cost $425,149,451) |
|
$ |
407,556,596 |
|
Foreign currency, at value (cost $5,510,849) |
|
|
5,025,227 |
|
Cash |
|
|
106,538 |
|
Receivable for investments sold |
|
|
10,215,334 |
|
Dividends and interest receivable |
|
|
170,051 |
|
Unrealized appreciation on swap contracts |
|
|
218,495 |
|
Deferred offering expense |
|
|
677,714 |
|
Prepaid expense |
|
|
6,697 |
|
|
|
|
|
Total Assets |
|
|
423,976,652 |
|
|
|
|
|
Liabilities: |
|
|
|
|
Securities sold short, at value (proceeds $213,082) |
|
|
192,749 |
|
Payable to brokers |
|
|
9,896 |
|
Payable for investments purchased |
|
|
12,276,413 |
|
Distributions payable |
|
|
68,009 |
|
Dividends payable on securities sold short |
|
|
731 |
|
Payable for investment advisory fees |
|
|
170,928 |
|
Payable for payroll expenses |
|
|
13,371 |
|
Payable for accounting fees |
|
|
7,500 |
|
Unrealized depreciation on swap contracts |
|
|
7,390 |
|
Series A 8.50% Cumulative Preferred Shares,
callable and mandatory redemption 02/26/16
(See Notes 2 and 5) |
|
|
96,012,100 |
|
Other accrued expenses |
|
|
140,382 |
|
|
|
|
|
Total Liabilities |
|
|
108,899,469 |
|
|
|
|
|
Net Assets Attributable to Common Shareholders |
|
$ |
315,077,183 |
|
|
|
|
|
Net Assets Attributable to Common Shareholders Consist of: |
|
|
|
|
Paid-in capital |
|
$ |
336,695,086 |
|
Accumulated net investment loss |
|
|
(4,196,344 |
) |
Accumulated net realized gain on investments,
swap contracts, securities sold short,
and foreign currency transactions |
|
|
819,293 |
|
Net unrealized depreciation on investments |
|
|
(17,592,855 |
) |
Net unrealized appreciation on swap contracts |
|
|
211,105 |
|
Net unrealized appreciation on securities sold short |
|
|
20,333 |
|
Net unrealized depreciation on foreign
currency translations |
|
|
(879,435 |
) |
|
|
|
|
Net Assets |
|
$ |
315,077,183 |
|
|
|
|
|
Net Asset Value per Common Share: |
|
|
|
|
($315,077,183 ÷ 21,177,810 shares outstanding, at $0.001
par value; unlimited number of shares authorized) |
|
$ |
14.88 |
|
|
|
|
|
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2010 (Unaudited)
|
|
|
|
|
Investment Income: |
|
|
|
|
Dividends (net of foreign taxes of $109,192) |
|
$ |
1,078,253 |
|
Interest |
|
|
371,728 |
|
|
|
|
|
Total Investment Income |
|
|
1,449,981 |
|
|
|
|
|
Expenses: |
|
|
|
|
Investment advisory fees |
|
|
1,057,159 |
|
Interest expense and amortization of offering costs |
|
|
4,057,845 |
|
Shareholder communications expenses |
|
|
65,871 |
|
Payroll expenses |
|
|
57,322 |
|
Offering expense for issuance of common shares |
|
|
49,912 |
|
Trustees fees |
|
|
45,863 |
|
Legal and audit fees |
|
|
27,070 |
|
Custodian fees |
|
|
25,998 |
|
Accounting fees |
|
|
22,500 |
|
Shareholder services fees |
|
|
6,776 |
|
Dividends on securities sold short |
|
|
731 |
|
Miscellaneous expenses |
|
|
43,380 |
|
|
|
|
|
Total Expenses |
|
|
5,460,427 |
|
|
|
|
|
Less: |
|
|
|
|
Advisory fee reduction on unsupervised assets
(See Note 3) |
|
|
(384 |
) |
|
|
|
|
Net Expenses |
|
|
5,460,043 |
|
|
|
|
|
Net Investment Loss |
|
|
(4,010,062 |
) |
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments,
Swap Contracts, Securities Sold Short, and
Foreign Currency: |
|
|
|
|
Net realized gain on investments |
|
|
4,100,096 |
|
Net realized gain on swap contracts |
|
|
757,228 |
|
Net realized loss on securities sold short |
|
|
(55,472 |
) |
Net realized gain on foreign currency transactions |
|
|
8,724 |
|
|
|
|
|
Net realized gain on investments, swap contracts,
securities sold short, and foreign currency transactions |
|
|
4,810,576 |
|
|
|
|
|
Net change in unrealized appreciation/depreciation: |
|
|
|
|
on investments |
|
|
(6,971,735 |
) |
on swap contracts |
|
|
175,277 |
|
on securities sold short |
|
|
20,333 |
|
on foreign currency translations |
|
|
(879,750 |
) |
|
|
|
|
Net change in unrealized appreciation/depreciation on
investments, swap contracts, securities sold short,
and foreign currency translations |
|
|
(7,655,875 |
) |
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on
Investments, Swap Contracts, Securities Sold Short,
and Foreign Currency |
|
|
(2,845,299 |
) |
|
|
|
|
Net Decrease in Net Assets Attributable to Common
Shareholders Resulting from Operations |
|
$ |
(6,855,361 |
) |
|
|
|
|
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL DEAL FUND
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, 2010 |
|
|
Year Ended |
|
|
|
(Unaudited) |
|
|
December 31, 2009 |
|
Operations: |
|
|
|
|
|
|
|
|
Net investment loss |
|
$ |
(4,010,062 |
) |
|
$ |
(11,427,327 |
) |
Net realized gain on investments, swap contracts, securities sold short,
and foreign currency transactions |
|
|
4,810,576 |
|
|
|
3,131,336 |
|
Net change in unrealized appreciation/depreciation on investments, swap contracts,
securities sold short, and foreign currency translations |
|
|
(7,655,875 |
) |
|
|
27,739,123 |
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders
Resulting from Operations |
|
|
(6,855,361 |
) |
|
|
19,443,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
Net realized short-term gain |
|
|
(271,076 |
)* |
|
|
|
|
Return of capital |
|
|
(13,282,722 |
)* |
|
|
(27,128,321 |
) |
|
|
|
|
|
|
|
Total Distributions to Common Shareholders |
|
|
(13,553,798 |
) |
|
|
(27,128,321 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions: |
|
|
|
|
|
|
|
|
Net decrease from repurchase of common shares |
|
|
|
|
|
|
(485,000 |
) |
|
|
|
|
|
|
|
Net Decrease in Net Assets from Fund Share Transactions |
|
|
|
|
|
|
(485,000 |
) |
|
|
|
|
|
|
|
Net Decrease in Net Assets Attributable to Common Shareholders |
|
|
(20,409,159 |
) |
|
|
(8,170,189 |
) |
|
|
|
|
|
|
|
|
|
Net Assets Attributable to Common Shareholders: |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
335,486,342 |
|
|
|
343,656,531 |
|
|
|
|
|
|
|
|
End of period (including undistributed net investment income of $0 and $0, respectively) |
|
$ |
315,077,183 |
|
|
$ |
335,486,342 |
|
|
|
|
|
|
|
|
|
|
|
* |
|
Based on year to date book income. Amounts are subject to change and recharacterization
at year end. |
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL DEAL FUND
STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2010
(Unaudited)
|
|
|
|
|
Cash Flows from Operating Activities: |
|
|
|
|
Net Decrease in net assets resulting from operations |
|
$ |
(6,855,361 |
) |
|
|
|
|
|
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to Net Cash from Operating Activities: |
|
|
|
|
Purchase of long-term investment securities |
|
|
(410,290,437 |
) |
Proceeds from sales of long-term investment securities |
|
|
319,369,514 |
|
Net sales of short-term investment securities |
|
|
120,802,318 |
|
Net realized gain on investments |
|
|
(4,100,096 |
) |
Net change in unrealized appreciation/depreciation on investments |
|
|
6,971,735 |
|
Net amortization of premium/(discount) |
|
|
(274,017 |
) |
Net change in unrealized appreciation/depreciation on swap contracts |
|
|
(175,277 |
) |
Increase in securities sold short |
|
|
192,749 |
|
Increase in receivable for investments sold |
|
|
(10,162,453 |
) |
Increase in payable for investments purchased |
|
|
7,049,764 |
|
Increase in payable to broker |
|
|
9,896 |
|
Increase in dividends and interest receivable |
|
|
(14,692 |
) |
Decrease in deferred offering expense |
|
|
49,912 |
|
Decrease in prepaid expense |
|
|
5,702 |
|
Increase in payable for dividends on securities sold short |
|
|
731 |
|
Decrease in payable for investment advisory fees |
|
|
(5,882,566 |
) |
Decrease in payable for payroll expenses |
|
|
(11,938 |
) |
Decrease in payable for accounting fees |
|
|
(3,750 |
) |
Increase in other accrued expenses |
|
|
14,899 |
|
|
|
|
|
Net cash used in operating activities |
|
|
16,696,633 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
Distributions payable |
|
|
(22,669 |
) |
Distributions to Common Shareholders |
|
|
(13,553,798 |
) |
|
|
|
|
Net cash from financing activities |
|
|
(13,576,467 |
) |
|
|
|
|
Net increase in cash |
|
|
3,120,166 |
|
|
|
|
|
|
|
|
|
|
Cash (including foreign currency): |
|
|
|
|
Beginning of period |
|
|
2,011,599 |
|
|
|
|
|
Ending of period |
|
$ |
5,131,765 |
|
|
|
|
|
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL DEAL FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
June 30, 2010 |
|
|
Year Ended December 31, |
|
|
Period Ended |
|
|
|
(Unaudited) |
|
|
2009 |
|
|
2008 |
|
|
December 31, 2007 (g) |
|
Operating Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
15.84 |
|
|
$ |
16.20 |
|
|
$ |
18.50 |
|
|
$ |
19.06 |
(h) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss) |
|
|
(0.19 |
) |
|
|
(0.54 |
) |
|
|
0.18 |
|
|
|
0.37 |
|
Net realized and unrealized gain/(loss) on investments, swap contracts,
securities sold short, and foreign currency transactions |
|
|
(0.13 |
) |
|
|
1.46 |
|
|
|
(0.89 |
) |
|
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations |
|
|
(0.32 |
) |
|
|
0.92 |
|
|
|
(0.71 |
) |
|
|
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
(0.18 |
) |
|
|
(0.30 |
) |
Net realized gain |
|
|
(0.01 |
)* |
|
|
|
|
|
|
(0.43 |
) |
|
|
(0.90 |
) |
Return of capital |
|
|
(0.63 |
)* |
|
|
(1.28 |
) |
|
|
(0.99 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common shareholders |
|
|
(0.64 |
) |
|
|
(1.28 |
) |
|
|
(1.60 |
) |
|
|
(1.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in net asset value from common share transactions |
|
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.00 |
(f) |
Decrease in net asset value from repurchase of common shares |
|
|
|
|
|
|
(0.00 |
)(f) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fund share transactions |
|
|
|
|
|
|
0.00 |
(f) |
|
|
0.01 |
|
|
|
0.00 |
(f) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, End of Period |
|
$ |
14.88 |
|
|
$ |
15.84 |
|
|
$ |
16.20 |
|
|
$ |
18.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value total return |
|
|
(2.09 |
)% |
|
|
5.90 |
% |
|
|
(4.06 |
)% |
|
|
3.35 |
%** |
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of period |
|
$ |
13.17 |
|
|
$ |
14.41 |
|
|
$ |
13.14 |
|
|
$ |
15.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
investment return |
|
|
(4.33 |
)% |
|
|
20.03 |
% |
|
|
(8.39 |
)% |
|
|
(14.55 |
)%*** |
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
9
THE GABELLI GLOBAL DEAL FUND
FINANCIAL HIGHLIGHTS (Continued)
Selected data for a share of beneficial interest outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2010 |
|
Year Ended December 31, |
|
Period Ended |
|
|
|
(Unaudited) |
|
2009 |
|
2008 |
|
December 31, 2007 (g) |
|
Ratios to Average Net Assets and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets including liquidation value of preferred shares,
end of period (in 000s) |
|
$ |
411,089 |
|
|
$ |
431,498 |
|
|
|
|
|
|
|
|
|
Net assets attributable to common shares, end of period (in 000s) |
|
$ |
315,077 |
|
|
$ |
335,486 |
|
|
$ |
343,657 |
|
|
$ |
394,017 |
|
Ratio of net investment income to average net assets attributable to
common shares including interest and offering costs |
|
|
(2.44) |
%(e) |
|
|
(3.35 |
)% |
|
|
1.02 |
% |
|
|
2.12 |
%(e) |
Ratio of operating expenses including interest, custodian fee credits
and offering costs to average net assets attributable to
common shares (a)(b) |
|
|
3.32 |
%(e) |
|
|
4.67 |
% |
|
|
0.66 |
% |
|
|
0.63 |
%(e) |
Ratio of operating expenses excluding interest and offering costs to
average net assets attributable to common shares |
|
|
0.82 |
%(e) |
|
|
2.53 |
% |
|
|
0.65 |
% |
|
|
0.62 |
%(e) |
Portfolio turnover rate |
|
|
144 |
% |
|
|
371 |
% |
|
|
334 |
% |
|
|
177 |
% |
Preferred Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.500% Series A Cumulative Preferred Shares (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000s) |
|
$ |
96,012 |
|
|
$ |
96,012 |
|
|
|
|
|
|
|
|
|
Total shares outstanding (in 000s) |
|
|
1,920 |
|
|
|
1,920 |
|
|
|
|
|
|
|
|
|
Liquidation preference per share |
|
$ |
50.00 |
|
|
$ |
50.00 |
|
|
|
|
|
|
|
|
|
Average market value (d) |
|
$ |
53.59 |
|
|
$ |
53.40 |
|
|
|
|
|
|
|
|
|
Asset coverage per share |
|
$ |
214.08 |
|
|
$ |
224.71 |
|
|
|
|
|
|
|
|
|
Asset coverage |
|
|
428 |
% |
|
|
449 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value per share, adjusted for reinvestment of distributions at the net
asset value per share on the ex-dividend dates. Total return for a period of less than one
year is not annualized. |
|
|
|
Based on market value per share, adjusted for reinvestment of distributions at prices obtained
under the Funds dividend reinvestment plan. Total return for a period of less than one year is
not annualized. |
|
|
|
Effective in 2008, a change in accounting policy was adopted with regard to the calculation of
the portfolio turnover rate to include cash proceeds due to mergers. Had this policy been
adopted retroactively, the portfolio turnover rate for the period ended December 31, 2007 would
have been 411%. |
|
* |
|
Based on year to date book income. Amounts are subject to change and recharacterization at
year end. |
|
** |
|
Based on net asset value per share at commencement of operations of $19.06 per share,
adjusted for reinvestment of distributions at the net asset value per share on the ex-dividend
dates. |
|
*** |
|
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 Funds dividend reinvestment plan. |
|
(a) |
|
The ratios do include a reduction for custodian fee credits on cash balances maintained with
the custodian (Custodian Fee Credits). Historically, the ratios reflected operating expenses
before the reduction for Custodian Fee Credits. If the ratios did not reflect a reduction for
Custodian Fee Credits, the ratios for the year ended December 31, 2008 and the period ended
December 31, 2007 would have been 0.67% and 0.64%, respectively.
For the six months ended June 30, 2010, and the year ended December 31, 2009, the effect of
Custodian Fee Credits was minimal. |
|
(b) |
|
The Fund incurred interest expense during the six months ended June 30, 2010 and the periods
ended December 31, 2009, 2008, and 2007. In the six months ended June 30, 2010 and the 2009 period,
interest and offering costs include amounts relating to the 8.50% Series A Preferred Shares issued
during this period. |
|
(c) |
|
Series A Cumulative Preferred Shares were first
issued on February 6, 2009. |
|
(d) |
|
Based on weekly prices. |
|
(e) |
|
Annualized. |
|
(f) |
|
Amount represents less than $0.005 per share. |
|
(g) |
|
The Gabelli Global Deal Fund commenced investment operations on January 31, 2007. |
|
(h) |
|
The beginning of period NAV reflects a $0.04 reduction for costs associated with the initial
public offering. |
See accompanying notes to financial statements.
10
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Organization. The Gabelli Global Deal Fund (the Fund) is a non-diversified closed-end
management investment company organized as a Delaware statutory trust on October 17, 2006 and
registered under the Investment Company Act of 1940, as amended (the 1940 Act). Investment
operations commenced on January 31, 2007.
The Funds primary investment objective is to achieve absolute returns in various market
conditions without excessive risk of capital. The Fund will seek to achieve its objective by
investing primarily in merger arbitrage transactions and, to a lesser extent, in corporate
reorganizations involving stubs, spin-offs, and liquidations. Under normal market conditions, the
Fund will invest at least 80% of its assets in securities or hedging arrangements relating to
companies involved in corporate transactions or reorganizations, giving rise to the possibility of
realizing gains upon or within relatively short periods of time after the completion of such
transactions or reorganizations.
The Fund may invest a high percentage of its assets in specific sectors of the market in order
to achieve a potentially greater investment return. As a result, the Fund may be more susceptible
to economic, political, and regulatory developments in a particular sector of the market, positive
or negative, and may experience increased volatility to the Funds NAV and a magnified effect in
its total return.
2. Significant Accounting Policies. The Financial Accounting Standards Board (FASB) Accounting
Standards Codification (ASC) has become the exclusive reference of authoritative United States of
America (U.S.) generally accepted accounting principles (GAAP) recognized by the FASB to be
applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of
federal laws are also sources of authoritative GAAP for SEC registrants. The ASC has superseded all
existing non-SEC accounting and reporting standards. The Funds financial statements are prepared
in accordance with GAAP, which may require the use of management estimates and assumptions. Actual
results could differ from those estimates. The following is a summary of significant accounting
policies followed by the Fund in the preparation of its financial statements.
Security Valuation. Portfolio securities listed or traded on a nationally recognized
securities exchange or traded in the U.S. over-the-counter market for which market quotations are
readily available are valued at the last quoted sale price or a markets 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 sixty 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 sixty 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. U.S. government
obligations with maturities greater than sixty days are normally valued using a model that
incorporates market observable data such as reported sales of similar securities, broker quotes,
yields, bids, offers, and reference data. 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.
11
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
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 ADR securities at the close
of the U.S. exchange; and evaluation of any other information that could be indicative of the value
of the security.
The inputs and valuation techniques used to measure fair value of the Funds 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 Funds 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 Funds investments in
securities and other financial instruments by inputs used to value the Funds investments as of
June 30, 2010 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
Quoted |
|
Other Significant |
|
Significant |
|
Market Value |
|
|
Prices |
|
Observable Inputs |
|
Unobservable Inputs |
|
at 6/30/10 |
INVESTMENTS IN SECURITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care |
|
$ |
109,334,139 |
|
|
$ |
|
|
|
$ |
48,950 |
|
|
$ |
109,383,089 |
|
Other Industries (a) |
|
|
158,533,893 |
|
|
|
|
|
|
|
|
|
|
|
158,533,893 |
|
|
Total Common Stocks |
|
|
267,868,032 |
|
|
|
|
|
|
|
48,950 |
|
|
|
267,916,982 |
|
|
Rights (a) |
|
|
786 |
|
|
|
|
|
|
|
|
|
|
|
786 |
|
Convertible Corporate Bonds |
|
|
|
|
|
|
3,272,250 |
|
|
|
|
|
|
|
3,272,250 |
|
Corporate Bonds |
|
|
|
|
|
|
538,500 |
|
|
|
|
|
|
|
538,500 |
|
U.S. Government Obligations |
|
|
|
|
|
|
135,828,078 |
|
|
|
|
|
|
|
135,828,078 |
|
|
TOTAL INVESTMENTS IN SECURITIES ASSETS |
|
$ |
267,868,818 |
|
|
$ |
139,638,828 |
|
|
$ |
48,950 |
|
|
$ |
407,556,596 |
|
|
INVESTMENTS IN SECURITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES (Market Value): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks Sold Short (a) |
|
$ |
(192,749 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(192,749 |
) |
|
TOTAL INVESTMENTS IN SECURITIES LIABILITIES |
|
$ |
(192,749 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(192,749 |
) |
|
OTHER FINANCIAL INSTRUMENTS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Unrealized Appreciation): * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY CONTRACT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract for Difference Swap Agreement |
|
$ |
|
|
|
$ |
218,495 |
|
|
$ |
|
|
|
$ |
218,495 |
|
LIABILITIES (Unrealized Depreciation): * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract for Difference Swap Agreements |
|
$ |
|
|
|
$ |
(7,390 |
) |
|
$ |
|
|
|
$ |
(7,390 |
) |
|
TOTAL OTHER FINANCIAL INSTRUMENTS |
|
$ |
|
|
|
$ |
211,105 |
|
|
$ |
|
|
|
$ |
211,105 |
|
|
|
|
|
(a) |
|
Please refer to the Schedule of Investments (SOI) for the industry classifications of these
portfolio holdings. |
|
* |
|
Other financial instruments are derivatives not reflected in the SOI, such as futures,
forwards, and swaps, which are valued at the unrealized appreciation/depreciation of the
instrument. |
12
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The Fund did not have significant transfers between Level 1 and Level 2 during the
reporting period.
The following is a reconciliation of Level 3 investments for which significant unobservable
inputs were used to determine fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in unrealized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
appreciation/ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
during the |
|
|
Balance |
|
Accrued |
|
Realized |
|
unrealized |
|
Net |
|
Transfers |
|
Transfers |
|
Balance |
|
period on Level 3 |
|
|
as of |
|
discounts/ |
|
gain/ |
|
appreciation/ |
|
purchases/ |
|
into |
|
out of |
|
as of |
|
investments held |
|
|
12/31/09 |
|
(premiums) |
|
(loss) |
|
depreciation |
|
(sales) |
|
Level 3 |
|
Level 3 |
|
6/30/10 |
|
at 6/30/10 |
|
INVESTMENTS IN SECURITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care |
|
$ |
48,950 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
48,950 |
|
|
$ |
|
|
|
TOTAL INVESTMENTS IN SECURITIES |
|
$ |
48,950 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
48,950 |
|
|
$ |
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on investments is included in the related
amounts in the Statement of Operations. |
|
|
|
The Funds policy is to recognize transfers into and transfers out of Level 3 as of the beginning
of the reporting period. |
In January 2010, the FASB issued amended guidance to improve disclosure about fair value
measurements which requires additional disclosures about transfers between Levels 1 and 2 and
separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of
fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing
disclosure requirements relating to the levels of disaggregation of fair value measurement and
inputs and valuation techniques used to measure fair value. Disclosures about purchases, sales,
issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are
effective for fiscal years beginning after December 15, 2010 and for interim periods within those
fiscal years. Management is currently evaluating the implications of this guidance on the Funds
financial statements. The remainder of the amended guidance is effective for financial statements
for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years.
Management has evaluated the impact of this guidance on the Funds financial statements and
determined that there is no impact as of June 30, 2010.
Derivative Financial Instruments.
The Fund may engage in various portfolio investment strategies by investing in a number of
derivative financial instruments for the purpose 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 Advisers 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 that, 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 Funds ability to pay distributions.
13
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The Funds derivative contracts held at June 30, 2010, if any, are not accounted for as
hedging instruments under GAAP.
Swap Agreements. The Fund may enter into equity and 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 a 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 Funds portfolio securities at the time a 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 paid or received on swaps, is reported as unrealized
gain or loss in the Statement of Operations. A realized gain or loss is recorded upon payment or
receipt of a periodic payment or termination of swap agreements.
The Fund has entered into equity contract for difference swap agreements with The Goldman Sachs
Group, Inc. Details of the swaps at June 30, 2010 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized |
Notional |
|
Equity Security |
|
Interest Rate/ |
|
Termination |
|
Appreciation/ |
Amount |
|
Received |
|
Equity Security Paid |
|
Date |
|
Depreciation |
|
|
Market Value
|
|
One month LIBOR plus 90 bps plus |
|
|
|
|
|
|
|
|
Appreciation on:
|
|
Market Value Depreciation on: |
|
|
|
|
|
|
$1,914,968 (370,000 Shares)
|
|
Chloride Group plc
|
|
Chloride Group plc
|
|
6/27/11
|
|
|
$218,495 |
|
108,870 (100,000 Shares)
|
|
Gulf Keystone Petroleum Ltd.
|
|
Gulf Keystone Petroleum Ltd.
|
|
6/27/11
|
|
|
(7,294 |
) |
4,898 (1,000 Shares)
|
|
J Sainsbury plc
|
|
J Sainsbury plc
|
|
6/27/11
|
|
|
(96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$211,105 |
|
|
|
|
|
|
|
|
|
|
|
|
The Funds volume of activity in equity contract for difference swap agreements during the six
months ended June 30, 2010 had an average monthly notional amount of approximately $1,340,804.
As of June 30, 2010, the value of equity contract for difference swap agreements that were held
with equity risk exposure can be found in the Statement of Assets and Liabilities under Assets,
Unrealized appreciation on swap contracts and Liabilities, Unrealized depreciation on swap
contracts.
For the six months ended June 30, 2010, the effect of equity contract for difference swap
agreements with equity risk exposure can be found in the Statement of Operations under Net Realized
and Unrealized Gain/(Loss) on Investments, Swap Contracts, Securities Sold Short, and Foreign
Currency, Net realized gain on swap contracts and Net change in unrealized
appreciation/depreciation on swap contracts.
Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against
changes in the value of its portfolio securities and in the value of securities it intends to
purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an
amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is
known as the initial margin. Subsequent payments (variation margin) are made or received by the
Fund each day, depending on the daily fluctuations in the value of the contract, and are included
in unrealized appreciation/depreciation on futures. The Fund recognizes a realized gain or loss
when the contract is closed.
There are several risks in connection with the use of futures contracts as a hedging instrument.
The change in value of futures contracts primarily corresponds with the value of their underlying
instruments, which may not correlate with the
14
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
change in value of the hedged investments. In addition, there is the risk that the Fund may
not be able to enter into a closing transaction because of an illiquid secondary market. During the
six months ended June 30, 2010, the Fund had no investment in futures contracts.
Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for
the purpose of hedging a specific transaction with respect to either the currency in which the
transaction is denominated or another currency as deemed appropriate by the Adviser. Forward
foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The
change in market value is included in unrealized appreciation/depreciation on foreign currency
translations. When the contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the value at the time it
was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying
prices of the Funds portfolio securities, but it does establish a rate of exchange that can be
achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential gain that might result
should the value of the currency increase. In addition, the Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts. During the six
months ended June 30, 2010, the Fund had no investments in forward foreign exchange contracts.
Repurchase Agreements. The Fund may enter into repurchase agreements with primary government
securities dealers recognized by the Federal Reserve Board, with member banks of the Federal
Reserve System, or with other brokers or dealers that meet credit guidelines established by the
Adviser and reviewed by the Board. Under the terms of a typical repurchase agreement, the Fund
takes possession of an underlying debt obligation subject to an obligation of the seller to
repurchase, and the Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Funds holding period. It is the policy of the Fund to receive and
maintain securities as collateral whose market value is not less than their repurchase price. The
Fund will make payment for such securities only upon physical delivery or upon evidence of book
entry transfer of the collateral to the account of the custodian. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is marked-to-market on a daily
basis to maintain the adequacy of the collateral. If the seller defaults and the value of the
collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or limited. At June 30, 2010,
there were no open repurchase agreements.
Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves
selling securities that may or may not be owned and, at times, borrowing the same securities for
delivery to the purchaser, with an obligation to replace such borrowed securities at a later date.
The proceeds received from short sales are recorded as liabilities and the Fund records an
unrealized gain or loss to the extent of the difference between the proceeds received and the value
of an open short position on the day of determination. The Fund records a realized gain or loss
when the short position is closed out. By entering into a short sale, the Fund bears the market
risk of an unfavorable change in the price of the security sold short. Dividends on short sales are
recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the
accrual basis. The broker retains collateral for the value of the open positions, which is adjusted
periodically as the value of the position fluctuates. Securities sold short at June 30, 2010 are
reported in the Schedule of Investments.
Series A 8.50% Cumulative Preferred Shares. For financial reporting purposes only, the
liquidation value of preferred shares that have a mandatory call date is classified as a liability
within the Statement of Assets and Liabilities
15
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
and the dividends paid on these preferred shares are included as a component of Interest
expense and amortization of offering costs within the Statement of Operations. Offering costs are
amortized over the life of the preferred shares.
Foreign Currency Translations. The books and records of the Fund are maintained in U.S.
dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S.
dollars at the current exchange rates. Purchases and sales of investment securities, income, and
expenses are translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or
changes in market prices of securities have been included in unrealized appreciation/depreciation
on investments and foreign currency translations. Net realized foreign currency gains and losses
resulting from changes in exchange rates include foreign currency gains and losses between trade
date and settlement date on investment securities transactions, foreign currency transactions, and
the difference between the amounts of interest and dividends recorded on the books of the Fund and
the amounts actually received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial 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 those of securities of comparable U.S.
issuers.
Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or
currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and
recoveries as applicable, based upon its current interpretation of tax rules and regulations that
exist in the markets in which it invests.
Merger Arbitrage Risk. The principal risk associated with the Funds investment strategy is
that certain of the proposed reorganizations in which the Fund invests may involve a longer time
frame than originally contemplated or be renegotiated or terminated, in which case losses may be
realized. The Fund invests all or a portion of its assets to seek short-term capital appreciation.
This can be expected to increase the portfolio turnover rate and cause increased brokerage
commission costs.
Securities Transactions and Investment Income. Securities transactions are accounted for on
the trade date with realized gain or loss on investments determined by using the identified cost
method. Interest income (including amortization of premium and accretion of discount) is recorded
on the accrual basis. Premiums and discounts on debt securities are amortized using the effective
yield to maturity method. Dividend income is recorded on the ex-dividend date except for certain
dividends which are recorded as soon as the Fund is informed of the dividend.
Custodian Fee Credits and Interest Expense. When cash balances are maintained in the custody
account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid
under the custody arrangement are included in custodian fees in the Statement of Operations with
the corresponding expense offset, if any, shown as custodian fee credits. When cash balances are
overdrawn, the Fund is charged an overdraft fee equal to 110% of the 90 day Treasury Bill rate on
outstanding balances. This amount, if any, would be included in interest expense in the Statement
of Operations. There were neither custodian fee credits earned nor such interest expense incurred
during the six months ended June 30, 2010.
Distributions to Common Shareholders. Distributions to shareholders are recorded on the
ex-dividend date. Distributions to shareholders are based on income and capital gains as determined
in accordance with federal income tax
16
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
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, timing differences, and differing
characterizations of distributions made by the Fund. 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.
The tax character of distributions paid during the year ended December 31, 2009 was as
follows:
|
|
|
|
|
Distributions paid from: |
|
|
|
|
Return of capital |
|
$ |
27,128,321 |
|
Provision for Income Taxes. The Fund intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the
Code). It is the policy of the Fund to comply with the requirements of the Code applicable to
regulated investment companies and to distribute substantially all of its net investment company
taxable income and net capital gains. Therefore, no provision for federal income taxes is required.
As of December 31, 2009, the components of accumulated earnings/losses on a tax basis were as
follows:
|
|
|
|
|
Net unrealized depreciation on investments,
swap contracts, and foreign currency translations |
|
$ |
(13,034,867 |
) |
Post-October currency loss deferral |
|
|
(1,330,052 |
) |
Other temporary differences* |
|
|
(126,547 |
) |
|
|
|
|
Total |
|
$ |
(14,491,466 |
) |
|
|
|
|
|
|
|
* |
|
Other temporary differences are primarily due to adjustments on preferred share class
distribution payables and mark-to-market adjustments on investments in swap contracts. |
Under the current tax law, capital losses related to securities and foreign currency
realized after October 31 and prior to the Funds year end may be treated as occurring on the first
day of the following year. For the year ended December 30, 2009, the Fund deferred capital losses
of $1,270,277 and currency losses of $59,775.
The following summarizes the tax cost of investments and the related net unrealized
appreciation/depreciation at June 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
Net Unrealized |
|
|
|
Cost/ |
|
|
Unrealized |
|
|
Unrealized |
|
|
Appreciation/ |
|
|
|
(Proceeds) |
|
|
Appreciation |
|
|
Depreciation |
|
|
Depreciation |
|
Investments |
|
$ |
427,715,195 |
|
|
$ |
6,350,597 |
|
|
$ |
(26,509,196 |
) |
|
$ |
(20,158,599 |
) |
Short sales |
|
|
(213,082 |
) |
|
|
20,333 |
|
|
|
|
|
|
|
20,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
427,502,113 |
|
|
$ |
6,370,930 |
|
|
$ |
(26,509,196 |
) |
|
$ |
(20,138,266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Fund is required to evaluate tax positions taken or expected to be taken in the
course of preparing the Funds 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, 2010, the Fund did not incur any income tax, interest, or penalties. As
of June 30, 2010, the Adviser has reviewed all open tax years and concluded that there was no
impact to the Funds net assets or results of operations. Tax years ended December 31, 2007 through
December 31, 2009 remain subject to examination by the Internal Revenue Service and state
17
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
taxing authorities. On an ongoing basis, the Adviser will monitor the Funds tax positions to
determine if adjustments to this conclusion are necessary.
3. Agreements and Transactions with Affiliates. The Fund has entered into an investment advisory
agreement (the Advisory Agreement) with the Adviser which provides that the Fund will pay the
Adviser a base fee, computed weekly and paid monthly, equal on an annual basis to 0.50% of the
value of the Funds average weekly managed assets. Managed assets consist of all of the assets of
the Fund without deduction for borrowings, repurchase transactions, and other leveraging
techniques, the liquidation value of any outstanding preferred shares, or other liabilities except
for certain ordinary course expenses. In addition, the Fund may pay the Adviser an annual
performance fee at a calendar year end if the Funds total return on its managed assets during the
year exceeds the total return of the 3 Month U.S. Treasury Bill Index (the T-Bill Index) during
the same period. For every four basis points that the Funds total return exceeds the T-Bill Index,
the Fund will accrue weekly and pay annually one basis point performance fee up to a maximum
performance fee of 150 basis points. Under the performance fee arrangement, the annual rate of the
total fees paid to the Adviser can range from 0.50% to 2.00% of the average weekly managed assets.
For the six months ended June 30, 2010, the Fund did not accrue a performance fee to the Adviser.
In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for
the Funds portfolio and oversees the administration of all aspects of the Funds business and
affairs.
During the six months ended June 30, 2010, the Fund paid brokerage commissions on security
trades of $258,218 to Gabelli & Company, Inc. (Gabelli & Co.), an affiliate of the Adviser.
The cost of calculating the Funds NAV per share is a Fund expense pursuant to the Advisory
Agreement between the Fund and the Adviser. During the six months ended June 30, 2010, the Fund
paid or accrued $22,500 to the Adviser in connection with the cost of computing the Funds NAV.
As per the approval of the Board, the Fund compensates officers who are employed by the Fund
and are not employed by the Adviser (although the officers may receive incentive based variable
compensation from affiliates of the Adviser) and pays its allocated portion of the cost of the
Funds Chief Compliance Officer. For the six months ended June 30, 2010, the Fund paid or accrued
$57,322 in payroll expenses in the Statement of Operations.
The Fund pays each Trustee who is not considered an affiliated person an annual retainer of
$6,000 plus $1,000 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any
out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per
meeting attended, the Audit Committee Chairman receives an annual fee of $3,000, the Nominating
Committee Chairman receives an annual fee of $2,000, and the Lead Trustee receives an annual fee of
$1,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for
participation in certain meetings held on behalf of multiple funds. Trustees who are directors or
employees of the Adviser or an affiliated company receive no compensation or expense reimbursement
from the Fund.
There was a reduction in the advisory fee paid to the Adviser relating to certain portfolio
holdings, i.e., unsupervised assets, of the Fund with respect to which the Adviser has transferred
dispositive and voting control to the Funds Proxy Voting Committee. During the six months ended
June 30, 2010, the Funds Proxy Voting Committee exercised control and discretion over all rights
to vote or consent with respect to such securities and the Adviser reduced its fee with respect to
such securities by $384.
4. Portfolio Securities. Purchases and sales of securities for the six months ended June 30, 2010,
other than short-term securities and U.S. Government obligations, aggregated $400,256,116 and
$302,638,572, respectively.
18
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
5. Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial
interest (par value $0.001). The Board has authorized the repurchase of its shares on the open
market when the shares are trading at a discount of 7.5% 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, 2010, the Fund did not repurchase any common shares of beneficial interest in the open market.
During the six months ended June 30, 2010, the Fund did not have any transactions in shares of
beneficial interest.
Transaction in shares of beneficial interest for the year ended December 31, 2009 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
December 31, 2009 |
|
|
|
Shares |
|
|
Amount |
|
Shares repurchased |
|
|
(33,700 |
) |
|
$ |
(485,000 |
) |
The Fund filed a $200 million shelf offering with the SEC that went effective August 6,
2008. The shelf offering gave the Fund the ability to offer preferred shares, notes, or
subscription rights to purchase preferred shares.
At the Funds August 20, 2008 Board meeting, the Board approved a Rights Offering for Series A
Cumulative Callable Preferred Shares (Preferred Shares). One transferable Right was issued for
each common share of the Fund held on December 19, 2008, the Record Date. Ten Rights plus $50 was
required to purchase one Preferred Share of the Fund. On February 6, 2009, the Fund received
$95,532,039 (after solicitation fees of $480,061) from the issuance of 1,920,242 shares of $50
Series A Cumulative Callable Preferred Shares, at $0.001 par value.
Gabelli & Company, Inc., an affiliate of the Adviser acted as Dealer Manager for the Rights
Offering. The Dealer Manager provided financial structuring and marketing services in connection
with the offering and solicited the exercise of Rights. The Fund agreed to pay a solicitation fee
equal to $0.25 per Preferred Share to broker-dealers that had executed and delivered soliciting
dealer agreements and had solicited the exercise of Rights. Gabelli & Company, Inc. retained
$215,385 in solicitation fees related to the Rights Offering.
The Funds Preferred Shares have an annual dividend rate of 8.50%. Distributions are paid
quarterly in March, June, September, and December of each year. The Preferred Shares will be
subject to mandatory redemption in full on February 16, 2016 at the liquidation preference of
$50.00 per share. The Preferred Shares are callable at any time within 30 to 60 days prior notice
at the liquidation preference plus any accumulated and unpaid dividends. At June 30, 2010,
1,920,242 shares of Series A Cumulative Preferred Shares were outstanding and accrued dividends
amounted to $68,009.
The 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 Preferred Shares are cumulative. The Fund is required by the
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 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 the requirements. Additionally, failure to meet the foregoing asset
coverage requirements could restrict the Funds ability to pay dividends to common shareholders and
could lead to sales of portfolio securities at inopportune times. The income received on the Funds
assets may vary in a manner unrelated to the fixed rate, which could have either a beneficial or
detrimental impact on net investment income and gains available to common shareholders.
19
THE GABELLI GLOBAL DEAL FUND
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The holders of cumulative Preferred Stock generally are entitled to one vote per share
held on each matter submitted to a vote of shareholders of the Fund and will vote together with
holders of common stock as a single class. The holders of cumulative Preferred Stock 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 stock, voting as a single class, will be required to approve any plan of
reorganization adversely affecting the preferred stock, and the approval of a majority (as defined
in the 1940 Act) of the outstanding preferred stock and 75% of the Funds outstanding voting
securities will be required to approve certain other actions, including changes in the Funds
investment objectives or fundamental investment policies.
6. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The
Funds 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 Funds existing contracts
and expects the risk of loss to be remote.
7. Other Matters. On April 24, 2008, the Investment Adviser entered into a settlement with the SEC
to resolve an inquiry regarding prior frequent trading activity in shares of the GAMCO Global
Growth Fund (the Global Growth Fund) by one investor who was banned from the Global Growth Fund
in August 2002. In an administrative order that was entered in connection with the settlement, the
SEC found that the Investment Adviser had willfully violated Section 206(2) of the Investment
Advisers Act of 1940, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had willfully
aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms
of the settlement, the Investment Adviser, while neither admitting nor denying the SECs findings
and allegations, paid $16 million (which included a $5 million civil monetary penalty),
approximately $12.8 million of which is in the process of being paid to shareholders of the Global
Growth Fund in accordance with a plan developed by an independent distribution consultant and
approved by the independent directors of the Global Growth Fund and acceptable to the staff of the
SEC, and agreed to cease and desist from future violations of the above referenced federal
securities laws. The SECs order also noted the cooperation that the Investment Adviser gave the
staff of the SEC. The settlement will not have a material adverse impact on the Investment Adviser
or its ability to fulfill its obligations under the Investment Advisory Agreement. On the same day,
the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of
the Investment Adviser, alleging violations of certain federal securities laws arising from the
same matter. The officer is also an officer of the Fund, the Global Growth Fund, and other funds in
the Gabelli/GAMCO fund complex. The officer denied the allegations and is continuing in his
positions with the Investment Adviser and the funds. The court dismissed certain claims, finding
that the SEC was not entitled to pursue various remedies against the officer while leaving one
remedy in the event the SEC were able to prove violations of law. The court, in response to a
motion by the SEC, subsequently dismissed the remaining remedy without prejudice against the
officer, which would allow the SEC to appeal the courts rulings. The Investment Adviser currently
expects that any resolution of the action against the officer will not have a material adverse
impact on the Investment Adviser or its ability to fulfill its obligations under the Investment
Advisory Agreement.
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 Funds Chief Executive Officer has certified to the New York Stock Exchange (NYSE) that,
as of June 30, 2010, 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 Funds principal executive officer and principal financial officer that
relate to the Funds disclosure in such reports and that are required by Rule 30a-2(a) under the
1940 Act.
20
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
Enrollment in the Plan
It is the policy of The Gabelli Global Deal Fund (the Fund) to automatically reinvest
dividends payable to common shareholders. As a registered shareholder you automatically become a
participant in the Funds Automatic Dividend Reinvestment Plan (the Plan). The Plan authorizes
the Fund to credit common shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a premium to net asset
value. All distributions to shareholders whose shares are registered in their own names will be
automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants
may send their share certificates to American Stock Transfer (AST) to be held in their dividend
reinvestment account. Registered shareholders wishing to receive their distributions in cash must
submit this request in writing to:
The Gabelli Global Deal Fund
c/o American Stock Transfer
6201 15th Avenue
Brooklyn, NY 11219
Shareholders requesting this cash election must include the shareholders name and address as
they appear on the share certificate. Shareholders with additional questions regarding the Plan or
requesting a copy of the terms of the Plan, may contact AST at (888) 422-3262.
If your shares are held in the name of a broker, bank, or nominee, you should contact such
institution. If such institution is not participating in the Plan, your account will be credited
with a cash dividend. In order to participate in the Plan through such institution, it may be
necessary for you to have your shares taken out of street name and re-registered in your own
name. Once registered in your own name your distributions will be automatically reinvested. Certain
brokers participate in the Plan. Shareholders holding shares in street name at participating
institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at
such institution must contact their broker to make this change.
The number of common shares distributed to participants in the Plan in lieu of cash dividends
is determined in the following manner. Under the Plan, whenever the market price of the Funds
common shares is equal to or exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital gains distribution,
participants are issued common shares valued at the greater of (i) the net asset value as most
recently determined or (ii) 95% of the then current market price of the Funds common shares. The
valuation date is the dividend or distribution payment date or, if that date is not a New York
Stock Exchange (NYSE) trading day, the next trading day. If the net asset value of the common
shares at the time of valuation exceeds the market price of the common shares, participants will
receive common shares from the Fund valued at market price. If the Fund should declare a dividend
or capital gains distribution payable only in cash, AST will buy common shares in the open market,
or on the NYSE, or elsewhere, for the participants accounts, except that AST will endeavor to
terminate purchases in the open market and cause the Fund to issue shares at net asset value if,
following the commencement of such purchases, the market value of the common shares exceeds the
then current net asset value.
The automatic reinvestment of dividends and capital gains distributions will not relieve
participants of any income tax which may be payable on such distributions. A participant in the
Plan will be treated for federal income tax purposes as having received, on a dividend payment
date, a dividend or distribution in an amount equal to the cash the participant could have received
instead of shares.
21
Voluntary Cash Purchase Plan
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their
investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders
must have their shares registered in their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making additional cash
payments to AST for investments in the Funds common shares at the then current market price.
Shareholders may send an amount from $250 to $10,000. AST will use these funds to purchase shares
in the open market on or about the 1st and 15th of each month. AST will charge each shareholder who
participates a pro rata share of the brokerage commissions. Brokerage charges for such purchases
are expected to be less than the usual brokerage charge for such transactions. It is suggested that
any voluntary cash payments be sent to American Stock Transfer, 6201 15th Avenue, Brooklyn, NY
11219 such that AST receives such payments approximately 10 days before the investment date. Funds
not received at least five days before the investment date shall be held for investment until the
next purchase date. A payment may be withdrawn without charge if notice is received by AST at least
48 hours before such payment is to be invested.
Shareholders wishing to liquidate shares held at AST must do so in writing or by telephone.
Please submit your request to the above mentioned address or telephone number. Include in your
request your name, address, and account number. The cost to liquidate shares is $1.00 per
transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less
than the usual brokerage charge for such transactions.
For more information regarding the Automatic Dividend Reinvestment Plan and Voluntary Cash
Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the
Fund.
The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash
payments made and any dividend or distribution paid subsequent to written notice of the change sent
to the members of the Plan at least 90 days before the record date for such dividend or
distribution. The Plan also may be amended or terminated by AST on at least 90 days written notice
to participants in the Plan.
22
TRUSTEES AND OFFICERS
THE GABELLI GLOBAL DEAL FUND
One Corporate Center, Rye, NY 10580-1422
Trustees
Mario J. Gabelli, CFA
Chairman & Chief Executive Officer,
GAMCO Investors, Inc.
Anthony J. Colavita
President,
Anthony J. Colavita, P.C.
James P. Conn
Former Managing Director &
Chief Investment Officer,
Financial Security Assurance Holdings Ltd.
Clarence A. Davis
Former Chief Executive Officer,
Nestor, Inc.
Mario dUrso
Former Italian Senator
Arthur V. Ferrara
Former Chairman & Chief Executive Officer,
Guardian Life Insurance Company of America
Michael J. Melarkey
Attorney-at-Law,
Avansino, Melarkey, Knobel & Mulligan
Edward T. Tokar
Senior Managing Director,
Beacon Trust Company
Salvatore J. Zizza
Chairman, Zizza & Co., Ltd.
Officers*
Bruce N. Alpert
President & Acting Treasurer
Carter W. Austin
Vice President
Peter D. Goldstein
Chief Compliance Officer & Acting Secretary
Laurissa M. Martire
Vice President
Delian Naydenov
Assistant Vice President & Ombudsman
David I. Schachter
Vice President
Investment Adviser
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
Custodian
The Bank of New York Mellon
Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Transfer Agent and Registrar
American Stock Transfer and Trust Company
Stock Exchange Listing
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8.50% |
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Common |
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Preferred |
NYSE-Symbol: |
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GDL |
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GDL PrA |
Shares Outstanding: |
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21,177,810 |
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1,920,242 |
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* |
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Agnes Mullady, Treasurer and Secretary, is on a leave of absence. |
The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading
Specialized Equity Funds, in Mondays The Wall Street Journal. It is also listed in Barrons
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 common shares in the open market when
the Funds shares are trading at a discount of 7.5% 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 DEAL FUND One Corporate Center Rye, NY 10580-1422 (914) 921-5070 |
Semi Annual Report June 30, 2010 |
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) |
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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. |
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Item 7. |
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Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies. |
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
There has been no change, as of the date of this filing, in any of the portfolio managers
identified in response to paragraph (a)(1) of this Item in the registrants most recently filed
annual report on Form N-CSR.
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Item 9. |
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Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers. |
REGISTRANT PURCHASES OF EQUITY SECURITIES
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(c) Total Number of |
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(d) Maximum Number (or |
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Shares (or Units) |
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Approximate Dollar Value) of |
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(a) Total Number of |
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Purchased as Part of |
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Shares (or Units) that May |
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Shares (or Units) |
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(b) Average Price Paid |
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Publicly Announced |
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Yet Be Purchased Under the |
Period |
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Purchased |
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per Share (or Unit) |
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Plans or Programs |
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Plans or Programs |
Month #1
01/01/10 through
01/31/10
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common 21,177,810
Preferred Series A 1,920,242 |
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Month #2
02/01/10 through
02/28/10
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common 21,177,810
Preferred Series A 1,920,242 |
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Month #3
03/01/10 through
03/31/10
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common 21,177,810
Preferred Series A 1,920,242 |
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Month #4
04/01/10 through
04/30/10
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
|
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Common 21,177,810
Preferred Series A 1,920,242 |
|
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Month #5
05/01/10 through
05/31/10
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common 21,177,810
Preferred Series A 1,920,242 |
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Month #6
06/01/10 through
06/30/10
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
|
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Common 21,177,810
Preferred Series A 1,920,242 |
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Total
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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Common N/A
Preferred Series A N/A
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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:
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a. |
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The date each plan or program was announced The notice of the potential repurchase of
common and preferred shares occurs quarterly in the Funds quarterly report in accordance with
Section 23(c) of the Investment Company Act of 1940, as amended. |
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b. |
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The dollar amount (or share or unit amount) approved Any or all common shares outstanding
may be repurchased when the Funds common shares are trading at a discount of 7.5% or more
from the net asset value of the shares. |
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Any or all preferred shares outstanding may be repurchased when the Funds preferred shares
are trading at a discount to the liquidation value of $50.00. |
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c. |
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The expiration date (if any) of each plan or program The Funds repurchase plans are
ongoing. |
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d. |
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Each plan or program that has expired during the period covered by the table The Funds
repurchase plans are ongoing. |
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e. |
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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 Funds repurchase plans
are ongoing. |
Item 10. Submission of Matters to a Vote of Security Holders.
On January 15, 2010, the Board of Trustees of The Gabelli Global Deal Fund (the Fund) approved
and adopted an amendment (the Amendment) to the By-Laws of the Fund. The Amendment was effective
as of January 15, 2010. The Amendment sets forth the processes and procedures that shareholders of
the Fund must follow, and specifies additional information that shareholders of the Fund must
provide, when proposing trustee nominations at any annual or special meeting of shareholders or
other business to be considered at an annual meeting of shareholders.
Item 11. Controls and Procedures.
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(a) |
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The registrants principal executive and principal financial officers, or persons
performing similar functions, have concluded that the registrants 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)). |
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(b) |
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There were no changes in the registrants 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
registrants second fiscal quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrants internal control
over financial reporting. |
Item 12. Exhibits.
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(a)(2) |
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Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the
Sarbanes-Oxley Act of 2002 are attached hereto. |
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(a)(3) |
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Not applicable. |
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(b) |
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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.
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(registrant) The Gabelli Global Deal Fund |
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By (Signature and Title)*
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/s/ Bruce N. Alpert |
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Bruce N. Alpert, Principal Executive Officer
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Date 9/1/10 |
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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.
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By (Signature and Title)*
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/s/ Bruce N. Alpert |
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Bruce N. Alpert, Principal Executive Officer & Principal Financial Officer |
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Date 9/1/10 |
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* |
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Print the name and title of each signing officer under his or her signature. |