================================================================================
GLOBAL INCOME
FUND
- --------------------------------------------------------------------------------
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
================================================================================
GLOBAL INCOME FUND American Stock
Exchange Symbol: GIF
- --------------------------------------------------------------------------------
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)
Par Market
Value Value
---------- -------------
DEBT SECURITIES (92.57%)
Argentina (1.25%)
$ 500,000 Compagnie De Radiocomunicaciones Moviles S.A.,
9.25% Notes, due 5/08/08................................................... $ 376,250
-------------
Bermuda (1.28%)
500,000 Global Crossing Holding Ltd., 8.70% Senior Bonds, due 8/01/07.............. 382,500
-------------
Canada (1.49%)
500,000 Fairfax Financial Holdings, 7.375% Notes, due 3/15/06...................... 446,807
-------------
Chile (1.66%)
500,000 Banco Sud Americano S.A., 7.60% Subordinated Notes, due 3/15/07 (2)........ 497,191
-------------
Egypt (1.66%)
500,000 Arab Republic of Egypt, 8.75% Unsubordinated Bonds, due 7/11/11............ 499,405
-------------
France (1.68%)
500,000 Socgen Real Estate LLC, 7.64% Bonds, due 12/29/49 (2)...................... 503,111
-------------
Japan (3.45%)
1,000,000 Takefuji Corp., 9.20% Senior Notes, due 4/15/11............................ 1,034,297
-------------
Mexico (6.98%)
1,000,000 Petroleos Mexicanos, 9.50% Bonds, due 9/15/27.............................. 1,070,000
500,000 United Mexican States, 8.625% Bonds, due 3/12/08........................... 520,000
500,000 United Mexican States, 8.375% Notes, due 1/14/11........................... 504,500
-------------
2,094,500
-------------
Qatar (3.29%)
1,000,000 Ras Laffan Liquid Natural Gas, 8.294% Secured Bonds, due 3/15/14........... 986,250
-------------
United States (63.61%)
500,000 Adelphia Communications, 10.25% Senior Notes, due 6/15/11.................. 495,000
1,000,000 Aetna Inc., 7.875% Senior Notes, due 3/01/11............................... 974,071
400,000 Alcoa Inc., 7.375% Notes, due 8/01/10...................................... 422,377
500,000 Allegheny Energy Supply, 7.80% Notes, due 3/15/11.......................... 508,656
1,300,000 American Home Products, 6.70% Notes, due 3/15/11........................... 1,302,898
1,000,000 Anheuser-Busch Companies Inc., 6.75% Notes, due 6/01/05.................... 1,018,375
500,000 AT&T Corp.-Liberty Media, 8.25% Debentures, due 2/01/30 (2)................ 430,984
750,000 Bunge Trade Ltd., 9.25% Notes, due 5/01/02 (2)............................. 753,750
1,000,000 Citizens Utilities Co., 7.60% Debentures, due 6/01/06...................... 991,209
250,000 Deere & Co., 7.125% Notes, due 3/03/31..................................... 244,409
500,000 Dillards Inc., 6.125% Notes, due 11/01/03.................................. 473,065
1,000,000 Fort James Corp., 8.375% Debentures, due 11/15/01.......................... 1,010,459
1,500,000 General Electric Capital Corp., 6.75% Notes, due 9/11/03................... 1,560,302
1,000,000 General Motors Acceptance Corp., 5.85% Senior Unsubordinated Notes,
due 1/14/09................................................................ 931,690
500,000 Kellogg Co., 6.60% Notes, due 4/01/11...................................... 489,465
See accompanying notes to financial statements.
3
GLOBAL INCOME FUND, INC.
Par Market
Value Value
---------- -------------
United States (continued)
$1,000,000 Long Island Lighting Co., 8.20% Debentures, due 3/15/23.................... $ 1,016,290
500,000 Penney (J.C.) Co., Inc., 6.90% Debentures, due 8/15/26..................... 481,980
1,000,000 Ryder System Inc., 6.35% Notes, due 7/28/04................................ 981,500
1,000,000 U.S. Treasury Note, 5.75%, due 11/15/05.................................... 1,030,125
2,000,000 U.S. Treasury Note, 4.625%, due 5/15/06.................................... 1,973,126
1,000,000 U.S. Treasury Note, 5.75%, due 8/15/10..................................... 1,023,601
1,000,000 U.S. Treasury Note, 5%, due 2/15/11........................................ 970,626
------------
19,083,958
------------
Uruguay (1.71%)
500,000 Banco Comercial S.A., 8.875% Bonds, due 5/15/09............................ 513,750
------------
Venezuela (3.59%)
690,000 PDVSA Finance Ltd., 8.75% Senior Notes, due 2/15/04........................ 700,012
455,000 Petrozuata Finance, Inc., 8.22% Notes, due 4/01/17 (2)..................... 376,513
------------
1,076,525
------------
Supranational/Other (.92%)
MXN2,400,000 The International Bank for Reconstruction & Development,
15.875% Notes, due 2/28/03 (1)............................................. 276,616
------------
Total Dept Securities (cost: $27,625,642).......................... 27,771,160
------------
Shares COMMON STOCKS (2.81%)
-------
Investment Advice (2.81%)
15,900 Alliance Capital Management Holding L.P.................................... 843,654
------------
Total Common Stocks (cost: $732,596) .............................. 843,654
------------
Par Value Short Term Investment (4.62%)
---------
$1,386,119 State Street Bank & Trust Repurchase Agreement, 2.00%, 6/29/01,
due 7/2/01 (collateralized by $1,355,000 U.S. Treasury Note,
5.375%, due 6/30/03, market value: $1,418,949, proceeds at maturity:
$1,386,351................................................................. 1,386,119
------------
Total Short Term Investments (cost: $1,386,119).................... 1,386,119
------------
Total Investments (cost:$29,744,357)(100.00%) .................. $ 30,000,933
============
(1) Par value stated in currency indicated; market value stated in
U.S. dollars.
(2) Purchased pursuant to Rule 144A exemption from Federal
registration requirements.
See accompanying notes to financial statements.
4
GLOBAL INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2001 (Unaudited)
ASSETS:
Investments at market value
(cost: $29,744,357) .............................. $ 30,000,933
Interest receivable ................................ 506,435
Other assets ....................................... 5,322
------------
Total assets ................................. 30,512,690
------------
LIABILITIES:
Investment securities purchased..................... 499,405
Accrued management fees ............................ 17,267
Accrued expenses ................................... 32,363
------------
Total liabilities ............................ 549,035
------------
NET ASSETS: (applicable to 5,277,803
outstanding shares: 20,000,000 shares
of $.01 par value authorized) ...................... $ 29,963,655
============
NET ASSET VALUE PER SHARE
($29,963,655/5,277,803 shares
outstanding) ....................................... $ 5.68
============
At June 30, 2001, net assets consisted of:
Paid-in capital .................................... $ 41,389,386
Accumulated net realized loss on
investments and foreign currencies................ (11,106,760)
Accumulated deficit in net investment
income ........................................... (575,916)
Net unrealized appreciation on
investments and foreign currencies ............... 256,945
------------
$ 29,963,655
============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2001 (Unaudited)
INVESTMENT INCOME:
Interest .......................................... $ 1,032,976
Dividends ......................................... 160,330
------------
Total investment income ....................... 1,193,306
------------
EXPENSES:
Management (note 3) ............................... 103,146
Custodian ......................................... 41,655
Professional (note 3) ............................. 24,632
Directors ......................................... 17,210
Registration (note 3) ............................. 8,658
Transfer agent .................................... 8,331
Printing .......................................... 4,960
Other ............................................. 38,780
------------
Total operating expenses ...................... 247,372
Loan interest and fees ........................ 1,101
------------
Total expenses ................................ 248,473
------------
Net investment income ................... 944,833
------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS, AND FOREIGN
CURRENCIES:
Net realized gain on investments .................. 578,695
Net realized loss from foreign
currency transactions .......................... (28,280)
Unrealized depreciation
of investments and foreign
currencies .................................... (181,458)
------------
Net realized and unrealized gain
on investments and foreign
currencies .................................... 368,957
------------
Net increase in net assets
resulting from operations .................... $ 1,313,790
============
See accompanying notes to financial statements.
5
GLOBAL INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended June 30, 2001 (Unaudited) and Year Ended December 31, 2000
Six Months
Ended Year
June 30, Ended
2001 December 31
(unaudited) 2000
-------------- -------------
OPERATIONS:
Net investment income ........................................................... $ 944,833 $ 2,429,148
Net realized gain (loss) from security and foreign currency transactions ........ 550,415 (1,178,752)
Unrealized appreciation (depreciation) of investments and foreign currencies
during the period ........................................................... (181,458) 1,635,694
-------------- ------------
Net change in net assets resulting from operations ...................... 1,313,790 2,886,090
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to shareholders ($0.29 and $0.42 per share, respectively) ......... (1,492,469) (2,143,663)
Tax return of capital to shareholders ($0.16 per share) ......................... - (797,060)
CAPITAL SHARE TRANSACTIONS:
Change in net assets resulting from reinvestment of distributions
(70,492 and 170,363 shares, respectively) (note 6) .......................... 359,665 777,179
-------------- ------------
Total change in net assets .............................................. 180,986 722,546
NET ASSETS:
Beginning of period ............................................................. 29,782,669 29,060,123
End of period (including accumulated deficit in net investment income of $575,916 -------------- ------------
as of June 30, 2001) ........................................................ $ 29,963,655 $ 29,782,669
============== ============
See accompanying notes to financial statements.
6
Notes to Financial Statements
(Unaudited)
(1) Global Income Fund, Inc. is a Maryland corporation registered under the
Investment Company Act of 1940, as amended, as a non-diversified, closed-end
management investment company, whose shares are listed on the American Stock
Exchange. The primary objective of the Fund is a high level of income and
secondarily, capital appreciation. The Fund seeks to achieve its investment
objectives by investing primarily in foreign and domestic fixed income
securities. The Fund is subject to the risk of price fluctuations of the
securities held in its portfolio which is generally a function of the underlying
credit ratings of an issuer, the duration and yield of its securities, and
general economic and interest rate conditions. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. With respect to security valuation,
securities traded on a national securities exchange or the Nasdaq National
Market System ("NMS") are valued at the last reported sales price on the day the
valuations are made. Such securities that are not traded on a particular day and
securities traded in the over-the-counter market that are not on NMS are valued
at the mean between the current bid and asked prices. Certain of the securities
in which the Fund invests are priced through pricing services which may utilize
a matrix pricing system which takes into consideration factors such as yields,
prices, maturities, call features and ratings on comparable securities. Bonds
may be valued according to prices quoted by a dealer in bonds which offers
pricing services. Debt obligations with remaining maturities of 60 days or less
are valued at cost adjusted for amortization of premiums and accretion of
discounts. Securities of foreign issuers denominated in foreign currencies are
translated into U.S. dollars at prevailing exchange rates. Forward contracts are
marked to market daily and the change in market value is recorded by the Fund as
an unrealized gain or loss. When a 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 Fund
could be exposed to risk if the counterparties are unable to meet the terms of
the contracts or if the value of the currency changes unfavorably. Investment
transactions are accounted for on the trade date (the date the order to buy or
sell is executed). Interest income is recorded on the accrual basis. Discounts
and premiums on securities purchased are amortized over the life of the
respective securities. Dividends and distributions to shareholders are recorded
on the ex-dividend date. In preparing financial statements in conformity with
generally accepted accounting principles, management makes estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements, as well as the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those
estimates.
(2) The Fund intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its taxable investment income and net capital gains, if
any, after utilization of any capital loss carryforward, to its shareholders and
therefore no Federal income tax provision is required. At December 31, 2000, the
Fund had an unused capital loss carryforward of approximately $11,685,000 of
which $4,111,000 expires in 2001, $173,000 in 2003, $1,880,000 in 2004, $214,000
in 2006, $3,926,000 in 2007 and $1,381,000 in 2008. Based on Federal income tax
cost of $29,744,357, gross unrealized appreciation and gross unrealized
depreciation were $652,619 and $396,043, respectively, at June 30, 2001.
Distributions paid to shareholders during the year ended December 31, 2000
differ from net investment income and net gains (losses) from security, foreign
currency, and futures transactions as determined for financial reporting
purposes. These distributions are shown under "Distributions to Shareholders" in
the Statements of Changes in Net Assets.
(3) The Fund retains CEF Advisers, Inc. as its Investment Manager. Under the
terms of the Investment Management Agreement, the Investment Manager receives a
management fee, payable monthly, based on the average weekly net assets of the
Fund at the annual rate of 7/10 of 1% of the first $250 million, 5/8 of 1% from
$250 million to $500 million, and 1/2 of 1% over $500 million. This fee is
calculated by determining the average of net assets on each Friday of a month
and applying the applicable rate to such average for the number of days in the
month. Certain officers and directors of the Fund are officers and direc-
7
tors of the Investment Manager. The Fund reimbursed the Investment Manager
$14,604 for providing certain administrative and accounting services at cost for
the six months ended June 30, 2001.
(4) The Fund has entered into an arrangement with its custodian whereby interest
earned on uninvested cash balances was used to offset a portion of the Fund's
expenses. Purchases and sales of securities other than short term notes
aggregated $25,648,679 and $26,040,611, respectively, for the six months ended
June 30, 2001. A forward currency contract is an obligation to purchase or sell
a specific currency for an agreed-upon price at a future date. When the Fund
purchases or sells foreign securities it customarily enters into a forward
currency contract to minimize foreign exchange risk between the trade date and
the settlement date of such transactions. The Fund could be exposed to risk if
counterparties to the contracts are unable to meet the terms of their contracts.
The Fund had no forward currency contracts outstanding at June 30, 2001.
(5) The Fund may borrow through a committed bank line of credit. At June 30,
2001, there was no balance outstanding on the line of credit and the interest
rate was equal to the Federal Reserve Funds Rate plus 1.00 percentage point. For
the six months ended June 30, 2001, there were no borrowing on the bank line of
credit.
(6) The tax character of distributions paid to shareholders was as follows:
Six Months Ended Year Ended
June 30, 2001 December 31, 2000
---------------- -----------------
Distributions paid from:
Ordinary income $1,492,469 $2,143,663
Return of capital - 797,060
---------- ----------
$1,492,469 $2,940,723
========== ==========
It is anticipated that a reclassification of ordinary income and return of
capital is likely to occur for the year ended December 31, 2001, although the
exact amount is not estimated at June 30, 2001.
================================================================================
At the Annual Meeting of Shareholders ("Annual Meeting") of the Fund held on
November 28, 2000, shareholders were asked to elect one director, to ratify the
selection of independent auditors for the fiscal period ending December 31,
2000, and to change the classification of the Fund from a diversified to a non-
diversified investment company. Shareholders elected Robert D. Anderson as a
director of the Fund with 4,269,718.576 shares voting in favor and 118,103.550
shares voting to withhold authority. The names of each other director whose term
of office continued after the meeting are George B. Langa, Peter K. Werner,
Thomas B. Winmill and Bassett S. Winmill. Regarding ratification of independent
auditors, 4,399,208.576 shares voted in favor, 60,974.550 shares voted against,
and 27,639 shares voted to abstain. Regarding the change of the Fund's
classification from a diversified to a non-diversified investment company, the
meeting was adjourned to permit further solicitation of proxies. At the re-
convened Annual Meeting held on January 10, 2001, regarding the proposal to
change the classification of the Fund from a diversified to a non-diversified
investment company, 2,621,816.479 shares voted in favor, 617,470.934 shares
voted against, 99,145.246 shares voted to abstain, and 1,828,906.891 shares were
unvoted.
8
GLOBAL INCOME FUND, INC.
FINANCIAL HIGHLIGHTS
Six Months Year Six Months Years Ended June 30,
Ended Ended Ended --------------------------------
June 30, 2001 December 31, December 31,
(Unaudited) 2000 1999 1999 1998
----------- ---- ---- ---- ----
PER SHARE DATA*
Net asset value at beginning of period............ $ 5.72 $ 5.77 $ 5.99 $ 6.93 $ 8.43
------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income........................... .18 .42 .23 .55 .52
Net realized and unrealized gain (loss) on
investments.................................... .07 .11 (.15) (.81) (1.18)
------------ ------------ ------------ ------------ ------------
Total from investment operations............ .25 .53 .08 (.26) (.66)
------------ ------------ ------------ ------------ ------------
Less distributions:
Distributions to shareholders................... (.29) (.42) (.23) (.55) (.52)
Tax return of capital to shareholders........... -- (.16) (.07) (.13) (.32)
------------ ------------ ------------ ------------ ------------
Total distributions......................... (.29) (.58) (.30) (.68) (.84)
------------ ------------ ------------ ------------ ------------
Net asset value at end of period.................. $ 5.68 $ 5.72 $ 5.77 $ 5.99 $ 6.93
============ ============ ============ =========== ============
Per share market value at end of period........... $ 5.30 $ 4.69 $ 4.44 $ 5.19 $ 6.44
============ ============ ============ =========== ============
TOTAL RETURN ON NET ASSET VALUE
BASIS.......................................... 4.98% 9.05% 2.52% (2.23)% (8.44)%
============ ============ ============ =========== ============
TOTAL RETURN ON MARKET VALUE
BASIS (a)...................................... 19.47% 19.75% (8.96)% (8.85)% (15.65)%
============ ============ ============ =========== ============
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (000's omitted)....... $ 29,964 $ 29,783 $ 29,060 $ 29,600 $ 33,024
============ ============ ============ =========== ============
Average net assets................................ $ 29,796 $ 29,240 $ 29,448 $ 30,261 $ 25,232
============ ============ ============ =========== ============
Ratio of expenses before loan interest,
commitment fees and nonrecurring expenses....... 1.67%** 1.38%** 1.48%** 1.46% 1.58%
============ ============ ============ =========== ============
Ratio of expenses to average net assets (b)....... 1.68%** 2.69%** 2.26%** 2.45% 3.52%
============ ============ ============ =========== ============
Ratio of net investment income to average
net assets....................................... 6.39%** 8.31%** 9.21%** 8.95% 8.53%
============ ============ ============ =========== ============
Portfolio turnover rate........................... 89% 259% 115% 183% 328%
============ ============ ============ =========== ============
1997 1996
---- ----
PER SHARE DATA*
Net asset value at beginning of period............ $ 7.92 $ 8.00
------------ ------------
Income from investment operations:
Net investment income........................... .51 .26
Net realized and unrealized gain (loss) on
investments.................................... .59 .23
------------ ------------
Total from investment operations............ 1.10 .49
------------ ------------
Less distributions:
Distributions to shareholders................... (.59) (.26)
Tax return of capital to shareholders........... -- (.31)
------------ ------------
Total distributions......................... (.59) (.57)
------------ ------------
Net asset value at end of period.................. $ 8.43 $ 7.92
============ ============
Per share market value at end of period........... $ 8.50
============
TOTAL RETURN ON NET ASSET VALUE
BASIS.......................................... 14.71% 6.26%
============ ============
TOTAL RETURN ON MARKET VALUE
BASIS (a)...................................... 15.71%
============
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (000's omitted)....... $ 25,361 $ 30,865
============ ============
Average net assets................................ $ 24,694 $ 35,803
============ ============
Ratio of expenses before loan interest,
commitment fees and nonrecurring expenses......... 2.00%
============
Ratio of expenses to average net assets (b)....... 2.71% 2.18%
============ ============
Ratio of net investment income to average
net assets....................................... 7.35% 6.55%
============ ============
Portfolio turnover rate........................... 475% 585%
============ ============
* Per share income and operating expenses and net realized and unrealized
gain (loss) on investments have been computed using the average number of
shares outstanding. These computations had no effect on net asset value per
share.
** Annualized.
(a) Effective February 7, 1997, the Fund converted from an open-end management
investment company to a closed-end management investment company. The Fund
has calculated total return on market value basis based on purchases and
sales of shares of the Fund at current market values and reinvestment of
dividends and distributions at prices obtained under the dividend
reinvestment plan. The calculation does not reflect brokerage commissions,
if any.
(b) Ratio after custodian credits was 2.66%, 2.24%**, 2.43% and 3.42% for the
year ended December 31, 2000, six months ended December 31, 1999 and the
years ended June 30, 1999 and 1998, respectively. There were no custodian
credits for the six months ended June 30, 2001.
9
GLOBAL INCOME, FUND, INC.
DIRECTORS OFFICERS
BASSETT S. WINMILL THOMAS B. WINMILL, Esq.
Chairman President
ROBERT D. ANDERSON/1/ MARION E. MORRIS
Vice Chairman Senior Vice President
GEORGE B. LANGA/1/ WILLIAM G. VOHRER
Treasurer
PETER K. WERNER/1/
MONICA PELAEZ, Esq.
THOMAS B. WINMILL, Esq. Vice President, Secretary
HEIDI KEATING
/1/Member, Audit Committee Vice President
STOCK DATA 2001 DISTRIBUTION PAYMENT DATES
Price (6/30/01)....................................... $5.30 January 31 May 31 September 28
Net Asset Value (6/30/01)............................. $5.68 February 28 June 30 October 31
Discount ............................................. 6.6% March 30 July 31 November 30
American Stock Exchange Trading Symbol: GIF April 30 August 31 December 28
Newspaper exchange listings appear under an
abbreviation, such as: Glinc
- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
The Fund has adopted a Dividend Reinvestment Plan (the "Plan"). Under the Plan,
each dividend and capital gain distribution, if any, declared by the Fund on
outstanding shares will, unless elected otherwise by each shareholder by
notifying the Fund in writing at any time prior to the record date for a
particular dividend or distribution, be paid on the payment date fixed by the
Board of Directors or a committee thereof in additional shares. If the Market
Price (as defined below) per share is equal to or exceeds the net asset value
per share at the time shares are valued for the purpose of determining the
number of shares equivalent to the cash dividend or capital gain distribution on
the Valuation Date, participants will be issued additional shares equal to the
amount of such dividend divided by the Fund's net asset value per share. If the
Market Price per share is less than such net asset value on the Valuation Date,
participants will be issued additional shares equal to the amount of such
dividend divided by the Market Price. The Valuation Date is the dividend or
distribution payment date or, if that date is not an American Stock Exchange
trading day, the next trading day. For all purposes of the Plan: (a) the Market
Price of the shares on a particular date shall be the average closing market
price on the five trading days the shares traded ex-dividend on the Exchange
prior to such date or, if no sale occurred on any of these days, then the mean
between the closing bid and asked quotations for the shares on the Exchange on
such day, and (b) net asset value per share on a particular date shall be as
determined by or on behalf of the Fund.
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10
GLOBAL INCOME FUND
==================
11 Hanover Square
New York, NY 10005