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.)

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GLOBAL INCOME
FUND
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SEMI-ANNUAL REPORT
June 30, 2001


American Stock
Exchange Symbol:

GIF


11 Hanover Square
New York, NY 10005

1-888-847-4200

www.globalincomefund.net

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

July 24, 2001

Fellow Shareholders:

We are pleased to submit this Semi-Annual Report 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, 2001, the Fund had approximately 88%
of its total assets invested in fixed income securities with an actual or deemed
investment grade rating, approximately 4% below investment grade, approximately
3% in stocks and the balance in money market securities. At mid-year
approximately 71% of investments were in entities located in the United States
and the balance was spread over eleven other countries and a supranational
organization.

Review and Outlook

After signaling a policy shift in December 2000, the U.S. Federal Reserve,
starting on January 3, 2001, began to lower the Federal Funds rate in reaction
to a dramatic slowdown in the nation's economy. In six rate changes, the first
five by lowering the rate each time by 0.50% and the last on June 27, 2001 by
0.25%, the Federal Reserve lowered the Federal Funds rate from 6.50% to 3.75%.
Against this economic background, the Lehman Brothers Aggregate Bond Index had a
first half return of 3.60% and the J.P.Morgan Emerging Markets Bond Index
returned 5.53%. Equity markets stumbled, however, with the Dow Jones Industrial
Average, Standard & Poor's 500 Stock Index, and the NasdaqComposite Index
declining -1.85%, -6.69% and-12.55%, respectively. We are pleased to report that
the Fund had a year-to-date market total return of 19.50% on a net asset value
return of 4.96%.

Confronted with the strong U.S. dollar, foreign central banks generally
have been less aggressive in cutting their internal interest rates, reflecting
uncertainty as to whether their economies will rebound or continue to show
declining corporate profits and employment. Some central banks, such as in the
U.K. and Sweden, wary of inflation, may even be considering increasing rates. In
contrast, Japan's deflationary and shrinking economy has produced falling
interest rates and solid returns for fixed income investors. In this evolving
situation, the Fund has expanded its investment in intermediate term Treasury
securities, U.S. corporate bonds, and Japanese bonds.

Going forward, our focus will again be on the economy and to what extent
the slowdown continues. We anticipate that the Federal Reserve will continue its
accommodative posture and

lower the Federal Funds rate, but in smaller increments and less frequently than
in the first half of 2001. All year long, economists have predicted that the
Fed's rate cuts would have the desired effect and stimulate the economy. Recent
evidence of a slowdown in the global economy, however, has pushed up the value
of the U.S. dollar (the opposite of what normally happens when U.S. interest
rates are cut) and has made it harder for U.S. manufacturers to sell products
abroad. With lower sales resulting in disappointing corporate earnings and lower
stock market prices, inflation concerns, and indications that the U.S.
government debt will not decline as much as predicted, long term bond yields
have actually risen from when the Fed started cutting short term rates. These
factors have slowed down any incipient U.S. economic recovery. We expect this
environment will present many opportunities to the Fund as it seeks out
investments with the greatest potential to provide shareholders with a high
level of income and, secondarily, capital appreciation over the balance of the
year.

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. We continue to believe shares of the Fund are a
sound value and attractive for portfolios seeking total return from capital
appreciation and income.

Purchase Shares at an Attractive Discount

The Fund's current net asset value per share is $5.68. With a recent
closing on the American Stock Exchange of $5.26 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 monthly
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/ Marrion E. Morris
Thomas B. Winmill Marrion E. Morris
President Senior Vice President,
Portfolio Manager


2

GLOBAL INCOME FUND, INC.

Schedule of Portfolio Investments--June 30, 2001 (Unaudited)