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)

John F. Ramírez, Esq.
Global Income Fund, Inc.
11 Hanover Square
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: 9/30/12
 
Item 1.  Schedule of Investments
 
 
GLOBAL INCOME FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
September 30, 2012
(Unaudited)
 
Shares
     
Cost
   
Value
 
   
COMMON STOCKS (70.53%)
           
   
REAL ESTATE INVESTMENT TRUSTS (70.53%)
           
   
Diversified (9.17%)
           
   
United Kingdom (0.45%)
           
  19,900  
British Land Company plc ADR (a)
  $ 151,441     $ 164,971  
                       
     
United States (8.72%)
               
  19,000  
Douglas Emmett, Inc.
    424,737       438,330  
  15,000  
PS Business Parks, Inc.
    964,567       1,002,300  
  8,500  
Public Storage
    1,141,295       1,182,945  
  7,000  
Vornado Realty Trust
    581,904       567,350  
            3,112,503       3,190,925  
     
Total Diversified
    3,263,944       3,355,896  
                       
     
Healthcare Facilities (6.45%)
               
     
United States (6.45%)
               
  13,000  
HCP, Inc.
    532,938       578,240  
  19,000  
Health Care REIT, Inc.
    1,036,008       1,097,250  
  11,000  
Ventas, Inc.
    648,239       684,750  
            2,217,185       2,360,240  
                       
     
Industrial (12.41%)
               
     
United States (12.41%)
               
  75,000  
CubeSmart
    895,972       965,250  
  37,000  
Extra Space Storage Inc.
    1,038,162       1,230,250  
  29,000  
ProLogis, Inc.
    997,864       1,015,870  
  23,000  
Sovran Self Storage, Inc.
    1,175,323       1,330,550  
            4,107,321       4,541,920  
                       
     
Mortgage Investment (1.85%)
               
     
United States (1.85%)
               
  90,000  
Newcastle Investment Corp.
    665,514       677,700  
                       
     
Office (6.10%)
               
     
United States (6.10%)
               
  7,000  
Boston Properties Inc.
    734,002       774,270  
  22,000  
Kilroy Realty Corp.
    999,440       985,160  
  13,000  
Liberty Property Trust
    453,805       471,120  
            2,187,247       2,230,550  
                       
     
Residential (12.53%)
               
     
United States (12.53%)
               
  15,000  
Apartment Investment and Management Company
    389,893       389,850  
  4,000  
AvalonBay Communities, Inc.
    554,230       543,960  
  22,000  
Education Realty Trust, Inc.
    231,461       239,800  
  9,000  
Equity Residential
    536,562       517,770  
  6,500  
Essex Property Trust, Inc.
    968,299       963,560  
  12,000  
Post Properties, Inc.
    562,802       575,520  
  19,000  
Senior Housing Properties Trust
    419,689       413,820  
  38,000  
UDR, Inc.
    991,711       943,160  
            4,654,647       4,587,440  
                       
     
Retail (22.02%)
               
     
Australia (0.47%)
               
  8,200  
Westfield Group ADR (a)
    151,352       172,938  
                       
     
United States (21.55%)
               
  55,000  
CBL & Associates Properties, Inc.
    993,870       1,173,700  
  25,000  
DDR Corp.
    373,470       384,000  
  10,500  
Federal Realty Investment Trust
    1,016,314       1,105,650  
  15,000  
General Growth Properties, Inc.
    247,913       292,200  
  55,000  
Kimco Realty Corp.
    1,018,929       1,114,850  
  11,000  
Regency Centers Corp.
    487,338       536,030  
  9,000  
SL Green Realty Corp.
    702,435       720,630  
  7,000  
Simon Property Group, Inc.
    999,187       1,062,670  
  14,000  
Taubman Centers, Inc.
    1,010,418       1,074,220  
  15,000  
Weingarten Realty Investors
    394,980       421,650  
            7,244,854       7,885,600  
     
Total retail
    7,396,206       8,058,538  
                       
     
Total common stocks
    24,492,064       25,812,284  
                       
     
PREFERRED STOCKS (8.50%)
               
     
REAL ESTATE INVESTMENT TRUSTS (8.50%)
               
     
Diversified (3.10%)
               
     
United States (3.10%)
               
  15,000  
PS Business Parks, Inc., 6.70%, Series P
    380,700       375,300  
  15,000  
Public Storage, 6.125%, Series A
    391,839       383,250  
  15,000  
Public Storage, 6.45%, Series F
    380,685       375,750  
            1,153,224       1,134,300  
                       
     
Industrial (2.19%)
               
     
United States (2.19%)
               
  15,000  
CubeSmart 7.75%, Series A
    389,806       404,400  
  15,000  
Monmouth Real Estate Investment Corp., 7.875%, Series B
    402,042       397,500  
            791,848       801,900  
                       
     
Office (1.04%)
               
     
United States (1.04%)
               
  15,000  
Duke Realty Corp. 6.50%, Series K
    373,313       379,500  
                       
     
Retail (2.17%)
               
     
United States (2.17%)
               
  15,000  
Pennsylvania Real Estate Investment Trust, 8.25%, Series A
    380,663       395,550  
  15,000  
Realty Income Corp., 6.625%, Series F
    396,285       399,300  
            776,948       794,850  
                       
     
Total preferred stocks
    3,095,333       3,110,550  
                       
     
SHORT-TERM INVESTMENT (21.31%)
               
Principal Amount
 
United States (21.31%)
               
$ 7,798,833  
State Street Bank and Trust Company Euro Time Deposit 0.01%, 10/01/12
    7,798,833       7,798,833  
                       
     
WHOLLY-OWNED SUBSIDIARY (0.12%)
               
     
REAL ESTATE INVESTMENT TRUST (0.12%)
               
Member Equity Interest
 
United States (0.12%)
               
  100%  
Self Storage Group I LLC (b) (c) (d)
    50,000       42,500  
                       
     
Total investments (100.46%)
  $ 35,436,230       36,764,167  
                       
     
Liabilities in excess of other assets (-0.46%)
            (167,961 )
                       
     
Net assets (100.00%)
          $ 36,596,206  
                       
(a) The company is organized as a real estate investment trust as defined by the laws of its country of domicile.
 
(b) Controlled affiliate.
               
(c) Non-income producing.
               
(d) Illiquid and/or restricted secuirity that has been fair valued.
               
                       
ADR
 
American Depositary Receipt
               
LLC
 
Limited Liability Company
               
REIT
 
Real Estate Investment Trust
               
plc
 
Public limited company
               

 
Notes to Schedule of Portfolio Investments (Unaudited)

Valuation of Investments
Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade.  Most equity securities for which the primary market is the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price.  Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded.  If the last sale price on the local exchange is unavailable, the last evaluated quote or closing bid price normally is used. Debt obligations with remaining maturities of 60 days or less are valued at cost adjusted for amortization of premiums and accretion of discounts. Certain of the securities in which the Fund may invest are priced through pricing services that 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 bond dealer that offers pricing services.  Open end investment companies are valued at their net asset value. Foreign securities markets may be open on days when 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 quotations are not readily available or reliable and other assets may be valued as determined in good faith by the Fund’s Valuation Committee (“VC”) under the direction of or pursuant to procedures established by the Fund’s Board of Directors, called fair value pricing.  Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed.  These differences in valuation 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.
 
Value Measurements
Inputs to valuation methods are prioritized by a three level hierarchy as follows:

·  
Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities including securities actively traded on a securities exchange.
·  
Level 2 – observable inputs other than quoted prices included in level 1 that are observable for the asset or liability which may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default  rates, and similar data.
·  
Level 3 – unobservable inputs for the asset or liability including the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for investments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing investments are not an indication of the risk associated with investing in those securities.

The following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis:

Equity securities (common and preferred stock) - Equity securities traded on a national securities exchange or market generally are stated normally at the official closing price, last sales price or, if no sale has occurred, at the closing bid price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they may be categorized in level 1. Preferred stock and other equities on inactive markets or valued by reference to similar instruments may be categorized in level 2.

Restricted and/or illiquid securities - Restricted and/or illiquid securities for which quotations are not readily available or reliable may be valued as determined in good faith by the VC under the direction of or pursuant to procedures established by the Fund's Board of Directors. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted or illiquid securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer or both or similar inputs. Depending on the relative significance of valuation inputs, these instruments may be classified in either level 2 or level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of September 30, 2012 in valuing the Fund’s assets carried at fair value. Refer to the Schedule of Portfolio Investments for detailed information on specific investments.
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
 Assets
                       
 Investments, at value
                       
 Common Stocks
                       
 Real Estate Investment Trusts
                       
 Diversified
                       
 United Kingdom
  $ 164,971     $ -     $ -     $ 164,971  
 United States
    3,190,925       -       -       3,190,925  
 Healthcare Facilities
                               
 United States
    2,360,240       -       -       2,360,240  
 Industrial
                               
 United States
    4,541,920       -       -       4,541,920  
 Mortgage Investment
                               
 United States
    677,700       -       -       677,700  
 Office
                               
 United States
    2,230,550       -       -       2,230,550  
 Residential
                               
 United States
    4,587,440       -       -       4,587,440  
 Retail
                               
 Australia
    172,938       -       -       172,938  
 United States
    7,885,600       -       -       7,885,600  
 Preferred Stocks
                               
 Real Estate Investment Trusts
                               
 Diversified
                               
 United States
    1,134,300       -       -       1,134,300  
 Industrial
                               
 United States
    801,900       -       -       801,900  
 Office
                               
 United States
    379,500       -       -       379,500  
 Retail
                               
 United States
    794,850       -       -       794,850  
 Short-term investment
                               
 United States
    -       7,798,833       -       7,798,833  
 Wholly-owned subsidiary
                               
 United States
    -       -       42,500       42,500  
                                 
 Total investments, at value
  $ 28,922,834     $ 7,798,833     $ 42,500     $ 36,764,167  
 
There were no securities transferred from level 1 on December 31, 2011 to level 2 on September 30, 2012. Transfers from level 1 to level 2, or from level 2 to level 1 are valued utilizing values at the beginning of the period.

The following is a reconciliation of level 3 investments for which significant unobservable inputs were used to determine fair value including securities valued at zero:
 
   
Wholly-Owned
 
   
Subsidiary
 
Balance at December 31, 2011
  $ -  
Cost of purchases
    50,000  
Change in unrealized depreciation
    (7,500 )
Balance at September 30, 2012
  $ 42,500  
         
Net change in unrealized depreciation attributable
       
to assets held as level 3 at September 30, 2012
  $ (7,500 )
 
There were no transfers into or out of level 3 assets during the period.

The VC under the direction of the Fund’s Board of Directors considers various valuation approaches for valuing securities categorized within level 3 of the fair value hierarchy. The factors used in determining  the value of the Fund’s private investments may include, but are not limited to, the discounts applied to the selection of comparable investments due to the private nature of the investment; the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security's disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer or analysts; an analysis of the company's or issuer's financial statements; an evaluation of the forces that influence the issuer and the market in which the security is purchased and sold. Significant changes in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. The pricing of all fair value holdings is subsequently reported to the Fund’s Board of Directors.

The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized with level 3 as of September 30, 2012:
 
   
Fair Value
   
Unobservable
     
   
September 30, 2012
Valuation Technique
Input
 
Amount
 
Wholly-owned subsidiary
               
Real estate investment trust
  $ 42,500  
Analysis of financial condition, operating results, and tangible net worth
Discount rate for lack of marketability
    15 %

Investment in Self Storage Group I LLC
The Fund formed Self Storage Group I LLC (“SSGI”), a wholly owned and controlled subsidiary, which will seek to own, operate, manage, acquire, develop and redevelop professionally managed self storage facilities. SSGI is a Delaware limited liability company and the Fund is its sole member. SSGI will seek to qualify as a REIT for federal income tax purposes in 2012.
 
   
Beginning
   
Membership Equity
   
Ending
         
Value
 
   
Equity Interest
   
Gross
   
Gross
   
Equity Interest
   
Dividend
   
September 30,
 
   
Percentage
   
Additions
   
Reductions
   
Percentage
   
Income
   
2012
 
Self Storage Group I LLC
    0 %   $ 50,000     $ -       100 %   $ -     $ 42,500  
                                                 
 
The Fund’s investment in SSGI has a limited trading market and/or certain restrictions on trading and, therefore, may be illiquid and/or restricted. This investment has been valued at fair value. Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed. These differences in valuation could be material. Illiquid and/or restricted securities owned at September 30, 2012, were as follows:

 
Acquisition
           
 
Date
 
Cost
   
Value
 
Self Storage Group I LLC
7/9/12
  $ 50,000     $ 42,500  
                   
Percent of net assets
      0.14 %     0.12 %

Cost for Federal Income Tax Purposes
At September 30, 2012, for federal income tax purposes the aggregate cost of securities was $35,436,230 and net unrealized appreciation was $1,327,937, comprised of gross unrealized appreciation of $1,476,001 and gross unrealized depreciation of $148,064.
 
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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits

(a)  
Certifications of the registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the 1940 Act.

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/ Mark C. Winmill
Mark C. Winmill, President

Date: November 29, 2012
 
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/ Mark C. Winmill
Mark C. Winmill, President

Date: November 29, 2012
 
By: /s/ Thomas O'Malley
Thomas O'Malley, Chief Financial Officer

Date: November 29, 2012
 
 
Exhibit Index

(a)
Certifications of the registrant's principal executive and principal financial officer as required by Rule 30a-2(a) under the 1940 Act. (EX-99.CERT)