N-Q: Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company filed on Form N-Q
Published on October 27, 2008
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-08025
GLOBAL INCOME FUND, INC.
(Exact name of registrant as specified in charter)
11 Hanover Square, 12th Floor
New York, NY 10005
(Address of principal executive offices) (Zip Code)
Thomas B. Winmill, President
Global Income Fund, Inc.
11 Hanover Square, 12th Floor
New York, NY 10005
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-212-344-6310
DATE OF FISCAL YEAR END: 12/31
DATE OF REPORTING PERIOD: 9/30/08
ITEM 1. SCHEDULE OF INVESTMENTS
GLOBAL INCOME FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 2008
(UNAUDITED)
Currency Abbreviations
----------------------
AUD - Australian Dollar
CAD - Canadian Dollar
EUR - Eurodollar
GBP - British Pound
NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED):
SECURITY VALUATION
Securities traded on a U.S. national securities exchange ("USNSE"), are valued
at the last reported sale price on the day the valuations are made. Securities
traded primarily on the Nasdaq Stock Market ("Nasdaq") are normally valued by
the Fund at the Nasdaq Official Closing Price ("NOCP") provided by Nasdaq each
business day. The NOCP is the most recently reported price as of 4:00:02 p.m. ET
unless that price is outside the range of the "inside" bid and asked prices
(i.e., the bid and asked prices that dealers quote to each other when trading
for their own accounts); in that case, Nasdaq will adjust the price to equal the
inside bid or asked price, whichever is closer. Because of delays in reporting
trades, the NOCP may not be based on the price of the last trade to occur before
the market closes. Securities that are not traded on a particular day and
securities traded in foreign and over-the-counter markets that are not also
traded on a USNSE or Nasdaq are valued at the mean between the last bid and
asked prices. Certain of the securities in which the Fund invests are priced
through pricing services that may utilize a matrix pricing system which takes in
to 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 that 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. Open end investment
companies are valued at their net asset value. Foreign securities markets may be
open on days when the U.S. markets are closed. For this reason, the value of any
foreign securities owned by the Fund could change on a day when stockholders
cannot buy or sell shares of the Fund. Securities for which market quotations
are not readily available or reliable and other assets may be valued as
determined in good faith under the direction of and pursuant to procedures
established by the Fund's Board of Directors. Due to the inherent uncertainty of
valuation, these values may differ from the values that would have been used had
a ready market for the securities existed and these differences could be
material. A security's valuation may differ depending on the method used for
determining value. The use of fair value pricing by the Fund may cause the net
asset value of its shares to differ from the net asset value that would be
calculated using market prices.
The Fund adopted Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157") on January
1, 2008. FAS 157 defines fair value as the price that the Fund would receive to
sell an asset or pay to transfer a liability in an orderly transaction between
market participants at the measurement date. FAS 157 establishes a framework for
measuring fair value and a three level hierarchy for fair value measurements
based on the transparency of inputs to the valuation of an asset or liability.
Inputs may be observable or unobservable and refer broadly to the assumptions
that market participants would use in pricing the asset or liability. Observable
inputs reflect the assumptions market participants would use in pricing the
asset or liability based on market data obtained from sources independent of the
Fund. Unobservable inputs reflect the Fund's own assumptions about the
assumptions that market participants would use in pricing the asset or liability
developed based on the best information available under the circumstances. The
Fund's investment in its entirety is assigned a level based upon the inputs
which are significant to the overall valuation. The hierarchy of inputs is
summarized below.
Level 1 - quoted prices in active markets for identical
investments.
Level 2 - other significant observable inputs (including quoted prices
for similar investments, interest rates, prepayment speeds,
credit risk, etc.).
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of the inputs used as of September 30, 2008 in
valuing the Fund's securities:
INVESTMENT IN
VALUATION INPUTS SECURITIES
- --------------------------------------------------------------------------------
Level 1 $ 29,916,936
Level 2 -
Level 3 -
------------------
Total $ 29,916,936
==================
COST FOR FEDERAL INCOME TAX PURPOSES
The cost of investments for federal income tax purposes is $32,761,387 and net
unrealized depreciation is $2,844,451 comprised of aggregate gross unrealized
appreciation and depreciation of $1,093,245 and $3,937,696, respectively.
AFFILIATED ISSUER
The term affiliate, as defined under the Act, includes companies in which there
is a direct or indirect (a) ownership of, control of or, voting power over 5% or
more of the outstanding voting shares or (b) control of, or common control
under, another company or persons. Midas Management Corporation and Investor
Service Center, Inc. act as the investment manager and distributor,
respectively, of Midas Dollar Reserves, Inc. and are affiliates of the Fund's
Investment Manager, CEF Advisers, Inc. Transactions with affiliates for the
nine months ended September 30, 2008 were as follows:
ITEM 2. CONTROLS AND PROCEDURES
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended (the "1940 Act")) are effective as of a date
within 90 days of the filing date of this report that includes the
disclosure required by this paragraph, based on their evaluation of
the disclosure controls and procedures required by Rule 30a-3(b) under
the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's second fiscal quarter of the
period covered by the report that have materially affected, or are
likely to materially affect the registrant's internal control over
financial reporting.
ITEM 3. EXHIBITS
(a) Certifications of principal executive and principal financial officers
as required by Rule 30a-2(a) under the Investment Company Act of 1940.
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.
GLOBAL INCOME FUND, INC.
By: /s/ Thomas B. Winmill
- -------------------------
Thomas B. Winmill, President
Date: October 24, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Thomas B. Winmill
- -------------------------
Thomas B. Winmill, President
Date: October 24, 2008
By: /s/ Thomas O'Malley
- -----------------------
Thomas O'Malley, Chief Financial Officer
Date: October 24, 2008
EXHIBIT INDEX
(a) Certifications of principal executive and principal financial officers
as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(EX-99.CERT)