N-30D: Initial annual and semi-annual reports mailed to investment company shareholders pursuant to Rule 30e-1 (other than those required to be submitted as part of Form NCSR.)

GLOBAL INCOME
FUND
================================================================================


SEMI-ANNUAL REPORT
June 30, 2000

American Stock
Exchange Symbol:
GIF







11 Hanover Square,
New York, NY 10005

1-888-847-4200

www.globalincomefund.net

Stock
GLOBAL INCOME FUND Exchange Symbol: GIF
================================================================================
11 Hanover Square, New York, NY 10005
www.globalincomefund.net

July 25, 2000

Fellow Shareholders:

We are pleased to submit this Semi-Annual Report for the six months ended
June 30, 2000 and to welcome our shareholders who have made their investment
since our last Report. The primary investment objective of the Fund is to
provide for its shareholders a high level of income and, secondarily, capital
appreciation. The Fund pursues its investment objectives by investing primarily
in a global portfolio of investment grade fixed income securities. At June 30,
2000, the Fund had approximately 72% of its total assets invested in fixed
income securities with an actual or deemed investment grade rating, and
approximately 28% of its total assets in fixed income securities with an actual
or deemed rating below investment grade. At mid-year, the Fund's two largest
investment allocations by country were the United States (50%) and Argentina
(14%), with the balance spread over 17 other countries, territories and
supranational organizations.

Review and Outlook

The first half of 2000 clearly demonstrated the potential benefits that
professional management and investment flexibility can offer investors. During
the first half of the year, many financial markets were characterized by high
levels of volatility, with many noteworthy price trends emerging and reversing
over the period. As usual, the key to successful investing during this period
seemed to be both what you owned and when you owned it. We are pleased to report
that during this difficult period Global Income Fund had a net asset value total
return of 5.53% and a market total return of 8.08%.

Interest rates were mixed during the first half of 2000. The Federal
Reserve raised its Federal Funds rate target by 1.00% to 6.50%, continuing a
trend that began in June 1998, when the rate was at 4.75%. Notably, after their
May 16 meeting, the target was increased by 0.50%, an aggressive departure from
the 0.25% increments that have characterized the tightening moves so far. In
contrast, three month Treasury bills rose only 0.52% over the same period, from
5.33% to 5.85%. Intermediate and long term government bond rates declined over
this period, predominantly due to concerns of reduced supply, and Treasury
buy-backs caused by the burgeoning Federal budget surplus. Five and ten year
Treasury note yields fell from 6.34% and 6.44%, to 6.18% and 6.03%,
respectively. This decline in rates was beneficial for prices and total return.
The Lehman Brothers Aggregate Bond Index had a six month total return of 3.99%.
Credit concerns, higher default rates, and negative cash flows out of high yield
funds led the Lehman Brothers High Yield Index to decline by 1.11% over the six
month period. The U.S. dollar rose by

3.52% versus the Yen and 5.34% against the Euro, causing the Lehman Brothers
Global Bond Index to decline by .08%. The J.P. Morgan Emerging Markets Bond
Index ended the period up 8.15%, with high levels of volatility throughout the
six months.

The current domestic economic environment is characterized by strong
growth, low unemployment, low but rising inflation, a large and growing budget
surplus, and a record high trade deficit. Fed policy is driven by an attempt to
raise interest rates by enough to prevent excess demand to increase inflationary
pressures. Financial markets are highly volatile, reflecting the strong, but
conflicting influences affecting market sentiment. On the one hand, the Fed is
seeking to reduce demand by raising the Fed Funds rate; yet, this interest rate
has become a less meaningful tool for adjusting monetary conditions in recent
years - demand, reflecting the "wealth effect" of the strong stock market over
the past five years and from overseas recoveries is not directly affected by
monetary policy. Further, the budget surplus has caused a decline in longer term
yields. On the other hand, increases in productivity, new technology, U.S.
Government budget surpluses, and other factors keep inflation low, despite high
levels of growth. The possibility of a so-called "new economy," where growth can
persist at high levels without igniting inflation, has been recognized by some
market participants, but not embraced by the Fed.

As to the period ahead, it is tempting to conclude that the Fed's raising
of interest rates has begun to bear fruit. Recent data suggest the torrid pace
of economic growth has abated. The unemployment rate has increased from a low of
3.9% to 4.1%, weekly jobless claims have risen, retail sales have slowed, and
interest sensitive sectors, such as housing and auto sales, have softened.
Second quarter GDP growth should be around, or more than 5%, down from more than
6% over the past three quarters. It is not clear that this slowdown will
continue, or that it was due to the Fed's 1.75 percentage points tightening over
the past year. It is likely that some of the slowing is related to demand being
satiated in prior quarters, warm weather, and normal random variation. The
slowdown in retail sales this spring coincided with high income tax payments.
The rise in personal income and high levels of consumer confidence, however, are
not consistent with a slowdown. In any event, we do not believe the Fed has done
enough to cause a slowdown. Excluding the easing to prevent a systemic crisis in
the fall of 1998, the Fed has only tightened by 1 percentage point. The year
over year rate of inflation has increased by between 2% and 4% since then, so
"real" Fed Funds are actually easier now than when the tightening began.
Moreover, recognizing the reduced role of the Fed Funds rate in determining
monetary conditions, a more comprehensive analysis suggests that overall
monetary conditions are no tighter now than they were a year ago. Although the
Fed Funds rate recently has been left unchanged, the Fed will certainly resume
interest rate hikes should economic growth re-accelerate or the rate of
inflation increase later in the year.

Additionally, demographics and volatility in equity markets should increase
demand for fixed income securities. We are impressed with the building strength
of European economies and are optimistic about the new Euro currency. In
contrast, we view the Japanese market with some skepticism, due to the lack of
progress in structural reforms, the crisis level of the fiscal

2

deficit, and the political deadlock - all suggestive of the lack of leadership
necessary to achieve enduring economic recovery. Although emerging markets
performed well during the first half of the year, we remain wary of their lower
liquidity levels and pricing excesses.

In view of these market conditions, the Fund's strategy has been to utilize
its global focus and flexibility to increase its dollar denominated investments
and benefit from U.S. dollar strength, as well as to extend its duration over
the first half of the year as the likelihood of near term, large magnitude rate
increases diminishes. In fact, the Fund's unhedged exposure to non-dollar assets
was negligible during this period. Going forward, we will continue to be looking
for investments with the greatest potential to provide stockholders with a high
level of income and, secondarily, capital appreciation.

10% Dividend Distribution Policy Continued

The managed 10% dividend distribution policy adopted by the Fund's Board of
Directors in 1997 continues to be well received. The objective is to provide
shareholders with a relatively stable cash flow and reduce or eliminate any
market price discount to the Fund's net asset value per share. Payments are made
primarily from ordinary income and any capital gains, with the balance
representing return of capital. For the six months ended June 30, 2000, actual
distributions were 5.02% of average net assets with approximately 95.73% derived
from net investment income and the balance from return of capital. We believe
shares of the Fund are a sound value and an appealing investment for portfolios
seeking total return from capital appreciation and income.

Reinvestment Plan Attractive

The Fund's current net asset value per share is $5.71. With a recent
closing on the American Stock Exchange of $4.69 per share, we believe this
represents an important opportunity to purchase additional shares at an
attractive discount from their underlying value. The Fund's Dividend
Reinvestment Plan is a very effective way to add to your holding because
quarterly dividend distributions are reinvested without charge at the lower of
net asset value per share or market price, which can contribute importantly to
growing your investment over time. Please call 1-888-847-4200, and an Investor
Service Representative will be happy to assist you.

We appreciate your support and look forward to continuing to serve your
investment needs.



Sincerely,



/s/ Thomas B. Winmill /s/ Steven A. Landis


Thomas B. Winmill Steven A. Landis
President Senior Vice President,
Portfolio Manager

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GLOBAL INCOME FUND, INC.
Schedule of Portfolio Investments--June 30, 2000 (Unaudited)